Circularity requires sustainable financial flows

​The transition into a circular economy requires both new business models and sustainable financial flows. Ensuring that waste becomes a source of sustainable raw materials, comes with huge responsible investments.

05 Aug 2024

– If we want to drive the development of new circular solutions, build plants that facilitate new technologies, and create industrial symbiosis, we have to make large and responsible investments. These investments will allow us to reintroduce as much resources as possible to society, says Madeleine Ljunggren, Chief Financial Officer at Ragn-Sells Group.

Sustainable financial flows play an important role in making Ragn-Sells' investments consistent with a pathway towards lower emissions and climate resilient development.

 "Sustainable finance is a necessary part of accelerating the transition towards a circular economy where waste is a natural source for sustainable raw materials.”

Madeleine Ljunggren, Chief Financial Officer at Ragn-Sells

A priority for Ragn-Sells is to increase awareness among all stakeholders, not the least investors, of the risks of a linear economy, the massive benefits of a circular economy, and the necessary actions and investments for a circular transition. Even if costs may increase short-term, such investments are necessary for a long-term sustainable future.

 – Development and investments on this journey will for sure come with challenges, but we all have to take a few chances in the transition towards a sustainable future. Even if we see increased ambitions on circular thinking in the society today, the pace varies. We want to lead this transition and place more circular solutions on the market, says Madeleine.

The past years have seen an increase in EU-regulations connected to sustainable investment, with the purpose of steering financial flows in a truly sustainable direction. Regulations such as the EU taxonomy and the new directive on sustainability reporting, CSRD, is driving a development where sustainability ambitions are increasingly seen as a deciding factor for business investments.

– We welcome that sustainability data is approaching equal status with financial information. Integrating sustainability reporting into annual reporting will push for a change in every step of the lifecycle of products, says Madeleine.

During 2023, it has become increasingly evident that a volatile world affects us all, not the least through increased insecurity and unpredictability. Ragn-Sells' business strategy, to lead the transition to a circular economy, is based on product diversification, solid finances, risk awareness, and careful planning. It allows robustness, resilience, and long-term profitability.

– The only way to lead the transition is to invest successfully. To secure a high success rate, we will continue developing our risk assessments, and add relevant risk factors to our major financial decisions, says Madeleine Ljunggren.

What is sustainable finance and ESG?

Sustainable finance refer to the process of taking environmental, social and governance (ESG) considerations into account when making investment decisions. Sustainable finance is a necessary part of accelerating the transition towards a circular economy where waste is a natural source for sustainable raw materials.