ESG Club
process of these vehicles integrating circularity into the design process to ensure minimal waste?
“Electric cars are now being built to ensure that the supply chain is carbon neutral and components recyclable,” Somel says. “There is an obligation that at the end of its life, the battery in an electric car has to be recycled and we can do this as with rel- atively new supply chains and product chains we can ensure we only engineer in materials that have these properties.” “This can not necessarily be said for older products in the economic system today as the environmental onus was never there when the products were originally engi- neered. Now that we have more sustaina- ble products i.e., electric cars because they help reduce emissions, let’s make sure we build in the circular economy ele- ment as well.
“Speaking to the larger car manufacturers they will openly share that: ‘We have to do this now because it’s what our customers want, and at the same time this also improves the cost comparativeness between electric and combustion vehi- cles.’ Having more recyclable parts at the end of life will also incentivise the close
Our relationship with food is complex, often wasteful and both resource and carbon-intensive
loop system, as there are economic as well as environmental reasons to recycle.”
3. Removing waste from our diet Our relationship with food is complex, often wasteful and both resource and car- bon-intensive. According to a study by Nature Food⁴, 57% of global greenhouse gas emissions from the production of food corresponds to the production of animal-based food, including livestock feed. While behaviours are changing – daily meat consumption in the UK has dropped by 17% between 2008 and 2019⁵ – we still need solutions to take as much waste as possible out of the system. In order to help combat waste, M&G’s Climate
Solutions team invests in
PI Partnership – M&G Investment
US-listed Darling Ingredients, which transforms waste products into feed and fuel. This ensures that the carbon from meat by-products is captured and reused rather than left to rot and release further greenhouse gas emissions while decom- posing, which serves no purpose. “Darling Ingredients has 124,000 unique pick-up points across the US where they pick up waste meat carcasses, recycle and then convert them into bio-based fuels so they can be redeployed in a way that helps us reduce emissions,” Somel says. “It takes a lot of waste out of the system that would otherwise decompose, and it sub- stitutes for a product that is far more car- bon emitting.
“The key with circular is that it’s in every area, and the potential remains very large,” Somel reflects
1) Circle Economy, “The Circularity Gap Report 2021”. 2) UK government, “10p plastic bag charge introduced in England”, (
www.gov.uk), 21 May 2021. 3) UK government, “Government takes historic step towards net-zero with end of sale of new petrol and diesel cars by 2030,” (
www.gov.uk), 18 November 2020. 4) Nature Food, “Global greenhouse gas emissions from animal-based foods are twice those of plant-based foods,” (
www.nature.com), 13 September 2021. 5) The Lancet Planetary Health, “Trends in UK meat consumption: analysis of data from years 1–11 (2008–09 to 2018–19) of the National Diet and Nutrition Survey rolling programme,” (
https://www.thelancet.com/journals/lanplh/home), October 2021.
For Investment Professionals only. The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested. Past performance is not a guide to future performance. The views expressed in this document should not be taken as a recommendation, advice or forecast. The article has been written for informational and educational purposes only and should not be considered as investment advice or as a recommenda- tion of any security, strategy or investment product. Issued by M&G Investment Management Limited, registered in England and Wales under number 936683 with its registered office at 10 Fenchurch Avenue, London EC3M 5AG. M&G Investment Management Limited is authorised and regulated by the Financial Conduct Authority.
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