Closed Loop Fund, an investment fund that finances recycling infrastructure and sustainable manufacturing technologies, has released its 2016 impact results, updating information it released in November 2016.
“Our portfolio is rapidly delivering greater and greater impact as more projects come online,” says Margot Kane, chief financial officer and chief investment officer of Closed Loop Fund. “In just the last quarter of 2016, tons diverted from landfill, greenhouse gas tons avoided and economic benefit to cities doubled what we saw cumulatively in the year prior.”
Kane continues, “We are showing that municipalities and recycling companies have significant demand for impact investment dollars, and we are unlocking powerful co-investment. To date, the investments are generating revenues and paying back on time.”
According to the report, of the 11 investments the Closed Loop Fund has made, five involve sorting: Council Bluffs, Iowa; Emerald Coast Utilities Authority in Florida; Eureka, Minnesota; Lakeshore, Illinois; and QRS Re-poly in Maryland, which also included an investment in processing. The fund also invested in collection infrastructure in Memphis, Tennessee; Portage County, Ohio; Scott County, Iowa; and Waterbury, Connecticut.
Closed Loop Fund has provided a number of highlights and statistics from its updated 2016 report as of Dec. 31, 2016:
Nearly $25 million were committed to 11 projects, with three-times the co-investment of more than $64 million from municipalities, banks and impact investors.
Eight live projects already have diverted 98,500 tons of material from landfill, reducing the equivalent of 232,000 metric tons of greenhouse gas emissions (like taking every car in Fort Myers, FL off the road for one year)
Municipalities have accrued $533,000 in economic benefit, such as educating 50 children in public schools for one year.
Activities represent recycling generated by nearly 1.2 million households, which is equivalent to a metro area the size of San Diego.
Since the end of 2016, Closed Loop Fund says it has closed two additional loans to Aero Aggregates, a lightweight aggregate manufacturing company creating a high-value end market for recycled glass in road construction and other geotechnical applications, and Escambia County Utilities Authority (ECUA), which has opened a new high-tech material recovery facility (MRF) in Pensacola, Florida, serving a region that was previously a recycling desert.
Founded in 2014, Closed Loop Fund is a social impact investment fund that provides cities access to the capital required to build comprehensive recycling programs. It aims to invest $100 million by 2020 with the goal to create economic value for cities by increasing recycling rates in communities across America. Closed Loop Fund brings together the world’s largest consumer product, retail and financial companies committed to finding a national solution to divert waste from landfills into the recycling stream to be used in the manufacturing supply chain. Key supporters include 3M, Coca-Cola, Colgate-Palmolive, Goldman Sachs, Johnson & Johnson Family of Consumer Cos., Keurig Green Mountain, Nestle Waters North America, PepsiCo and the PepsiCo Foundation, Procter & Gamble, Unilever, Walmart and the Walmart Foundation.