What exactly is the circular economy?

The circular economy is a model of production and consumption that focuses on extending product lifecycles and minimizing waste. Unlike the traditional linear model (take, make, dispose), a circular approach emphasizes reusing, sharing, repairing, refurbishing, and recycling materials for as long as possible. This creates a closed-loop system where resources maintain their value and environmental impact is reduced.

Why are circular economy companies considered good investments?

Companies in the circular economy sector are positioned to benefit from increasing global pressures around resource scarcity, waste reduction, and environmental regulations. They often have defensive characteristics (everyone needs waste management) while also offering growth potential from new technologies and changing consumer preferences. As sustainability becomes a business imperative, these companies provide essential services and solutions that other industries increasingly need.

What is the difference between recycling and the circular economy?

Recycling is one component of the circular economy, but the circular economy is much broader. While recycling focuses on converting waste materials into new materials (often of lower quality), the circular economy designs out waste from the beginning. It includes business models based on sharing, product-as-service, repair, remanufacturing, and regenerative approaches that maintain materials at their highest value. Think of recycling as one tool in the circular economy toolbox.

What does "depolymerize" mean when discussing plastic recycling?

Depolymerization is a chemical process that breaks down plastic polymers (long chains of molecules) back into their original building blocks or monomers. This is important because it allows plastics to be recycled into virgin-quality materials that can be used again for the same purpose, unlike mechanical recycling which often results in lower-quality materials. Companies like LOOP in this stock group use depolymerization technology to transform waste PET plastic back into its original components for infinite reuse.

What is "waste-to-energy" technology?

Waste-to-energy technology converts non-recyclable waste materials into usable heat, electricity, or fuel through various processes like combustion, gasification, or anaerobic digestion. For example, CREG in this stock group captures industrial waste heat and gas and converts it into electricity. This approach helps reduce landfill use while generating energy, though it's considered less preferable than reuse and recycling in the circular economy hierarchy.

16 handpicked stocks

Circular Economy

Discover companies transforming the traditional 'take-make-dispose' model into sustainable cycles of renewal and reuse. These stocks have been carefully selected by our analysts for their innovative approaches to resource efficiency and waste reduction, positioning them for long-term growth as sustainability becomes a competitive advantage.

Han Tan | Market Analyst

Published on June 18

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Waste Management, Inc.

Current price

$237.67

As a leading provider of waste management and recycling services, it forms the operational backbone of resource recovery at scale.

Republic Services, Inc.

RSG

Current price

$224.71

The company provides essential recycling and solid waste services, playing a direct role in returning used materials to the productive economy.

Waste Connections, Inc.

WCN

Current price

$166.53

This company offers integrated solid waste services, including resource recovery through recycling and renewable fuels generation.

Casella Waste Systems Inc

CWST

Current price

$88.31

Clean Harbors, Inc.

CLH

Current price

$289.41

PURECYCLE TECHNOLOGIES INC

PCT

Current price

$5.68

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Your Basket's Financial Footprint

Summary and key takeaways for the Circular Economy stock basket based on provided market capitalisation data.

Key Takeaways for Investors:

Large-cap dominance generally implies lower volatility and returns that more closely track broad market performance.
Use as a core portfolio holding for diversified, long-term exposure rather than a speculative, high-growth bet.
Expect steady, long-term value creation rather than short-term explosive gains; growth is likely more gradual.

Total Market Cap

WM: $86.56B
RSG: $68.98B
WCN: $44.42B
Other

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

≈

In 12 months it might be worth:

$1,000.00

+52.47%

≈

About This Group of Stocks

Our Expert Thinking

This portfolio focuses on companies that are closing the resource loop by designing out waste and pollution, keeping materials in use, and regenerating natural systems. These businesses are positioned to thrive as regulations tighten and consumers increasingly demand sustainable products and transparent supply chains.

What You Need to Know

This group balances established waste management leaders with innovative disruptors across the entire circular value chain. It offers defensive characteristics through essential services while capturing growth from new technologies in recycling, material science, and sustainable product design.

Why These Stocks

Each company was selected for its specific role in advancing the circular economy, from traditional waste management to cutting-edge recycling technologies. These stocks are well-positioned to benefit from increasing global pressure for sustainability and resource efficiency in business operations.

Group Performance Snapshot

52.47%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 52.47% over the next year.

15 of 16

Stocks Rated Buy by Analysts

15 of 16 assets in this group are rated Buy by professional analysts.

0.8%

Group Growth

This group averaged a 0.8% return last month.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

♻️

The Future is Circular

These companies are capitalizing on a massive shift in how we produce and consume. As resources become scarcer and regulations tighter, businesses that close the loop on waste are positioned for significant growth.

🌎

Regulation Tailwinds

Global sustainability commitments are accelerating, creating strong demand for circular solutions. These companies aren't just riding a trend - they're delivering essential services for a resource-constrained world.

💡

Innovation Meets Necessity

From advanced recycling technologies to waste-to-energy systems, these stocks represent the innovative frontier of turning problems into profits. They're transforming liabilities into assets at an industrial scale.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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Circular Economy

Top Picks from This Group

Your Basket's Financial Footprint

12 Month Growth Potential

About This Group of Stocks

Our Expert Thinking

What You Need to Know

Why These Stocks