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Circular Green and ESG Finance

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The Circular, Green and ESG Finance research area explores how financial markets, institutions and governments can accelerate the shift toward a circular, low-carbon and resource-efficient economy. Our work examines how this transformation influences financial risks and returns, how it challenges traditional business models, how it guides investment decisions and capital flows, and how it affects the reputation of financial institutions.

Established in 2019 in collaboration with Intesa Sanpaolo (ISP) Banking Group through Intesa Sanpaolo Innovation Center (ISPIC), the research area combines independent academic research with engagement involving financial institutions, undertakings, international organisations and policymakers.

Starting from the circular economy (CE) as the economic paradigm, as opposed to the linear one, suitable for a sustainable development, we study how circular business models and corporate circularity shape financial performance, risk, and resilience. Our work also explores how the financial system and policymakers can mobilise investments and help scale circular solutions. These questions are explored within the broader fields of green, transition, and ESG finance, and in the context of evolving European and international policy frameworks.
 

The research programme is organised around three closely connected areas: 
 

  • Circular Economy and Finance     

We examine CE as a theme that cuts across global socio-economic dynamics, generates double materiality and connects specific ESG issues to measurable sustainability outcomes. The transition to a CE has clear financial implications, that we study to understand how firms’ return, risk exposure, and resilience evolve as they engage in circular practices, and how these dynamics affect the financial system. Our analysis is anchored in the rapidly changing EU and global regulatory landscape.
 

  • Green Economy and Finance   

We study the role of finance as a key lever for addressing and supporting policies related to climate change and nature conservation.  In particular, we focus on green financial products, climate physical and transition risks, risks of biodiversity loss, and the decision-making process for green investments.
 

  • Transition/ESG Finance  

We investigate capital flows as a critical enabler of the transition toward a more sustainable economy. Our research focuses on how adopting sustainable practices can strengthen firms’ competitiveness in a volatile geopolitical landscape, where, for instance, access to virgin raw materials is increasingly becoming a strategic bargaining factor.

To strengthen the practical and policy relevance of its research, the area collaborates with industry partners and international organisations, including Intesa Sanpaolo Innovation Center, the United Nations Environment Programme Finance Initiative (UNEP FI), the Sustainable Finance team of the European Commission’s Joint Research Centre (JRC), and the Ellen MacArthur Foundation.

 

The Relationship between Circular Economy and Finance 

In 2019, Intesa Sanpaolo and Università Bocconi signed a rolling agreement to collaborate in the field of sustainable finance. The close partnership with the Intesa Sanpaolo Innovation Center (ISPIC) has enabled independent academic research on the relationship between CE and finance. ISPIC’s mission is to act as an accelerator of innovation, with a particular focus on digital transformation and the circular economy.

The joint research projects are organised around four pillars considered essential for enabling finance to play an active role in pursuing a circular transformation of the economy for a sustainable development:

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Contacts 

circular.finance@unibocconi.it 

 

Research Stream 2019-2021 

Prof. Claudio Zara, Dr. Shyaam Ramkumar (PhD), Dr. Luca Bellardini (PhD).
Research assistants: Giacomo Bezzi, Margherita Gobbi, Martina Iannuzzi, Federica Oliva, Guido Roncali. 
 

Publications   

  • Zara C, Bellardini L, Gobbi M (2023) Circular economy, stock volatility, and resilience to the COVID-19 shock. The Quarterly Journal of Finance 13(2):1-48. doi:10.1142/S2010139223400062. Available as SSRN Working Paper  (link).  
  • Zara C., Ramkumar S. (2022). Circular economy and default risk. Journal of Financial Management, Markets and Institutions, 2250001, 1-24 https://doi.org/10.1142/S2282717X22500013 (link). 
  • Tellini M., El Khoury C., Zara C., Bellardini L. (2022). La sostenibilità evolve: economia e finanza circolari per un nuovo sviluppo. Bancaria, 2022(4), 17-31 (link).
  • Zara C, Iannuzzi M, Ramkumar S (2022) The impact of Circular Economy on Public Equity in Europe. Bancaria (Roma)(9):1. Available as SSRN Working Paper  (link). 
  • Zara, C., Bellardini, L., Roncali, G. (2021). Circular economy as a de-risking strategy and driver of superior risk-adjusted returns. A white paper published by the Ellen MacArthur Foundation in collaboration with Bocconi University and Intesa Sanpaolo (link). 
  • Zara C. (2020). Circular Economy and Finance. Opportunities for the financial services industry. In Pettinaroli A. (editor), Transformative Economies. From the Circular Economy to the Green New Deal, 8-21. Fondazione Giangiacomo Feltrinelli (link). 

Events 

  • Green Economy Observatory Workshop: Circular finance and business growth, May 20th 2021 (link)

  

Research Stream 2022-2025  

Prof. Claudio Zara, Dr. Maximilian Göbel (Phd), Dr. Martina Barbaglia (PhD), Dr. Luca Bellardini (PhD). Research assistants: Giacomo Bezzi, Francesca D’Orazio, Paola Di Rocco, Ylenia Moscheni, Borui Qiu, Aakanksha Srisha.
 

Publications 

  • Zara C., Barbaglia M. (2026). Does Circular Economy affect credit risk? The unexplored role of Circular Economy Disclosure in Europe (submitted for publication).

  • Akpinar M., Moscheni Y., Zara C. (2026). Circular Shared Value. The Road to Social Impact in the Banking Industry (submitted for publication). 

  • Zara C., Moscheni Y. (2026). Impact banking and urban regeneration. A model of intervention for the banking sector. Bancaria (2), 1-14 (link).

  • Zara C., Bellardini L., Oliva F. (2025).  Circular economy, corporate sustainability reporting and equity risk in European markets: First findings. Bancaria - Forum Section, 2025(3).  Available as SSRN Working Paper (link) 

  • Zara C., Bellardini L. (2023). Circular Economy and Finance: Either a straightforward relation or a virtuous loop? In H. Lehtimäki, L. Aarikka-Stenroos, A. Jokinen, P. Jokinen (editors), The Routledge Handbook of Catalysts for a Sustainable Circular Economy. (link to Handbook) (link to Chapter)

Working papers 

  • Akpinar M., Moscheni Y., Zara C. (2025). An applied analytical framework for creating circular shared value in the banking industry. Available as SSRN Working Paper (link).

  • Zara C., Barbaglia M., Göbel M. (2025). Circular Economy, Non-Financial Disclosure and Credit Risk in Europe (link). 

  • Zara C., Bezzi G. (2025). Does sustainability affect the private equity asset class? Presented at the Wolpertinger Conference, Rome, September 2026.

  • Zara C., Göbel M., Qiu B. (2023). Expanding the Zoo: The Circularity Factor (link).

 

Research Stream 2026-2029  

Prof. Claudio Zara, Dr. Martina Barbaglia (PhD).
Research assistant: Davide Delfino.

Research under development

 

Relationships with Policymakers

Participation in the Working Group on Resource Efficiency and Circular Economy by UNEP FI (United Nations Environment Programme Finance Initiative), which has led to the production of the following documents so far: 

  • Guidance on Resource Efficiency and Circular Economy Target Setting – Version 2 (2023) (link).

  • Circular Economy as an Enabler for Responsible Banking: Leveraging the Nexus between Circularity and Sustainability Impact (2024) (link).

  • Unlocking Circular Economy Financing: From Vision to Action (2025) (link).

  • Circular Solutions to Achieve Climate Targets (2025) (link).

  • Circular Solutions to Achieve Nature Targets (2026) (link).

Collaboration with the Sustainable Finance team of the European Commission’s Joint Research Centre (JRC) on the role of private finance in supporting the transition to a circular economy. The collaboration led to the production of the following working paper:

  • Alessi L., Barbaglia M., Cotignano G., Zara C. (2026). Private finance for circular economy (under review). 

 

Events 

  • Joint Research Centre Workshop: Nature finance - Science for policy, September 17th 2026 (link).

  • Bocconi-Bristol First Sustainability and Green Finance Research Workshop, May 30th 2025 (link).

  • UNEP FI Workshop: Launch of the report on Circular Economy as an Enabler for Responsible Banking, July 18th 2024.

  • GREEN Workshop: Climate change, local development and financial markets, April 14th 2023.

 

  Partnership and collaborations