Socially Responsible Supply Chains – Why Every Investor Should Care (Hint: It Drives Better Financial Performance)

This column is co-authored with my colleague, Ellen Martin, our Chief Impact Officer, who is leading the integration of responsible supply chain management throughout every facet of Circulate Capital’s investment approach, from sourcing and due diligence to portfolio management. A driving force behind these initiatives, Ellen has led the creation of a pioneering roadmap, engaging our team, portfolio companies and LPs. In this piece, she shares unique insights about why investors need to widen apertures to incorporate responsible sourcing as part of building a sustainable circular economy.

From the early days of identifying solutions to fight ocean plastic, we knew that we would only achieve success when we stopped thinking about this as only an environmental crisis and considered the people involved. Ending plastic pollution and developing a circular economy has clear climate benefits, but we also need to mitigate risks around human rights and improve workers’ livelihoods. If we do it right, this work can be an engine for economic prosperity and a just transition.