Small logo Subscribe to leading news on impact investing. Learn More
The Brief Originals Dealflow Signals The Impact Alpha Impact Voices Podcasts Agents of Impact Open
What's Next Capital on the Frontier Measure Better Investing in Racial Equity Beyond Trade-offs Impact en las Americas New Revivalists
Local and Inclusive Climate Finance Catalytic Capital Frontier Finance Best Practices Geographies
Slack Agent of Impact Calls Events Contribute
The Archive ImpactSpace The Accelerator Selection Tool Network Map
About Us FAQ Calendar Pricing and Payment Policy Privacy Policy Terms of Service Agreement Contact Us
Locavesting Entrepreneurship Gender Smart Return on Inclusion Good Jobs Creative economy Opportunity Zones Investing in place Housing New Schooled Well Being People on the Move Faith and investing Inclusive Fintech
Clean Energy Farmer Finance Soil Wealth Conservation Finance Financing Fish
Innovative Finance
Personal Finance Impact Management
Africa Asia Europe Latin America Middle East Oceania/Australia China Canada India United Kingdom United States
Subscribe Log In

PepsiCo Foundation anchors Circulate Capital initiative to fight ocean plastic

ImpactAlpha, October 24 – PepsiCo Foundation has committed $15 million to an investment initiative by Circulate Capital, an investment firm that launched in July to combat the global ocean plastic problem. Circulate Capital is looking to make debt, equity and quasi-equity investments in recycling and waste management ventures in India, Indonesia, and other Asian markets.

Circulate Capital is a spin-off of Closed Loop Partners, which invests in U.S.-based recycling initiatives and technologies. Circulate’s founder, Rob Kaplan, told ImpactAlpha that the impetus for the initiative was companies looking for similar investment opportunities in emerging markets, particularly Asia, where half of the plastic that ends up in the ocean comes from only five countries.

The philanthropic arm of PepsiCo, which also backs Closed Loop Partners, provided early support to Circulate Capital’s founding team as it was conducting a feasibility study for a similar investment thesis geared towards emerging markets. Its new commitment to Circulate’s investing initiative was the first capital in the door.

“Never have I seen an environmental topic explode onto the public mainstream psyche like the plastic waste crisis has in the last 18 months,” PepsiCo’s Roberta Barbieri told ImpactAlpha.

Barbieri, who works for PepsiCo proper rather than its foundation, adds that the company’s evolution on the issue and motivation to steer away from single-use plastics mirrors the public’s growing awareness and concern. “It’s as much about [business] risk mitigation as much as environmental protection. This is one issue where the two coincide really well.”

Circulate’s portfolio approach will be different from Closed Loop Partners to reflect the different needs and market gaps in emerging markets. “In the U.S. and Europe, municipalities own waste management; in emerging markets, it’s the informal sector that manages most of the waste,” Kaplan says. “There’s also a leapfrogging opportunity. In the U.S., [we’re doing] waste and recycling with legacy systems. In Asia, there’s an opportunity to build new value chains out of waste streams.”

Circulate Capital is expecting $90 million in commitments from corporate backers, including Procter & Gamble, Dow, Danone, Unilever, and Coca-Cola in addition to PepsiCo.

You might also like...