Sustainable concrete blends is a major nature-positive investible opportunity, says a new World Economic Forum report.
The report, 50 Investible Opportunities for a New Nature Economy, developed in collaboration with Oliver Wyman, says blends reduce reliance on newly quarried raw materials by substituting a portion with recycled industrial byproducts or recovered construction materials. They provide similar structural performance to traditional concrete while helping companies meet regulatory standards and growing market demand for low-impact building solutions.
These blends also have an array of nature benefits, including reducing new quarrying, lowering pollution and reducing the energy intensity needed for new concrete, it said.
While these products are commercially viable today and can often be integrated into existing production facilities with moderate capital investment, many sustainable blends retail at a higher price than conventional concrete, as the latter benefits from established logistics, economies of scale and similar factors that lower costs.
As economies of scale are built and business models are derisked, sustainable concrete offers an opportunity for investors to put capital towards a business-ready, nature-positive solution that can generate returns, it says.
“At its core, this is a capital allocation challenge,” said Derek Baraldi, Head of Sustainable Finance, World Economic Forum. “Financial institutions and businesses that integrate nature into strategy today are not just managing risk but positioning themselves for competitive advantage.”
Financial institutions can help scale these solutions by providing the capital companies need to invest in new production processes and facilities. They can also reduce risk through tools such as sustainability-linked loans, guarantees or blended financing, helping innovative materials reach the market faster, the report says.
The World Economic Forum’s Nature-Positive Transitions report series explores transformative pathways to halt and reverse nature loss by 2030. Focusing on critical sectors, the series highlights the dual impacts and dependencies of these industries on nature, alongside the priority actions businesses can take to avoid and reduce negative impacts, mitigate nature-related risks, build resilience and unlock opportunities across value chains. Nine sectors have been involved: technology, automotive, cement and concrete, chemicals, household and personal care products, mining and metals, ports and offshore wind. - TradeArabia News Service