Closed Loop Partners Showcases Circular Opportunities in 2022 Impact Report

Closed Loop Partners has released its 2022 Impact Report, highlighting its achievements in reducing waste, improving recycling and advancing a circular economy.

Economic fluctuations have provided an avenue away from the current "Take-Make-Waste" system.

"Fluctuating commodity prices, coupled with supply chain disruptions and record-breaking climate disasters lifted the hood on legacy systems weighed down by overproduction, a lack of transparency, and high costs of extraction and landfilling," commented Ron Gonen, founder and CEO. “Opportunities to disrupt the status quo with resource optimization and increased innovation are proving more critical than ever."

In terms of venture capital, the investment firm has $72 million assets under management across two funds. Its portfolio of 31 companies is spread across five sectors: organics (51 percent); plastics and packaging (21 percent); Fashion and Beauty (20 percent); and supply chain technology (9 percent).

With a target fund size of $250 million, the firm's The Closed Loop Growth Opportunities Fund is working to scale circular solutions. The fund has noted it is seeking opportunities in science and tech that can advance circular fashion, materials innovation, supply chain tech and food & agriculture technology. As of 2022, Growth Opportunities has secured more than 770 deals across the four sectors.

In addition, Closed Loops Partners' Leadership Fund has approximately $200 million in capital committed to date. According to the report, this particular fund is working to capture market share "by acquiring, growing and investing in companies, platforms and enabling technologies primarily across packaging, organics, electronics and apparel to develop, grow and modernize circular supply chains and recycling and reuse infrastructure." 

The Leadership Fund has provided cost savings of $21 million to municipalities, according to the Impact Report.

The report also boasts Closed Loop's commitment to advancing circular structure with catalytic capital.

"Insufficient infrastructure, outdated technologies and collection gaps have led to hundreds of millions of tons of valuable commodity materials being discarded to disposal, rather than circulated back into products and packaging across the United States," the report stated. "The Closed Loop Infrastructure Fund finances scalable and sustainable infrastructure projects, equipment and new technologies across the collection, sortation and processing stages of the recycling value chain."

The firm has noted nearly $90 million has been invested in 45 companies to date.

Closed Loops Partners also emphasized the need for innovation to advance circularity and address bottlenecks in current waste systems. The firm's The Center for Circular Economy innovates, tests and scales solutions.

"Creating the systems change needed to advance the circular economy is larger than any one organization or individual," the report stated. "Collaboration is at the core of this work. By bringing together key stakeholders, including designers, brands, manufacturers, trade associations, retailers, non-governmental organizations, activist groups, municipalities, recovery facilities, material processors and end markets, the Center for the Circular Economy creates a platform for collaboration."

Existing collaborations include NexGen Consortium, Consortium to Reinvent the Retail Bag and The Composting Consortium. A strong focus on organics was achieved in 2022, with the publication of a new brief that identified four steps to creating an efficient, sustainable organics system in the United States.

"After nearly a decade of hard work and progress toward creating a waste-free world, Closed Loop Partners is proud to stand alongside our portfolio companies, partners and a team dedicated to building a future where nothing is wasted––and everything is a resource to be built upon," Gonen concluded. "Together, we have kept 4.8 million tons of materials in circulation and avoided 10.1 million tonnes of greenhouse gas emissions to date, and we are only getting started. We celebrate this incredible progress and recognize that there is still much work to be done to achieve a truly circular economy."