The Relationship between Biodiversity, Circular Economy, and Institutional Investors in the Sustainable Transition: A Mixed Review

The purpose of this paper is twofold. Firstly, to demonstrate the interconnectivity between circular economy, biodiversity, and institutional investors literature. Secondly, to critically discuss the degree to which institutional investors are involved in promoting biodiversity and circular economy models that will improve the state of biodiversity.

A literature search was conducted on papers from 2013 to 2023, followed by a discussion based on the results.

The findings indicate that only one article examines all three terms together and reveals conflicting views on the effectiveness of circular economy in achieving sustainability. To avoid confusion, metrics should include circular economy, biodiversity, and investors. While ESG is associated with circular economy, its limitations can hinder sustainability. Effective CE business models face obstacles such as uncertainty of outcomes and resource shortages.

This research is original in that it focuses on the interconnectivity of these terms and emphasizes the need for sustainable tools to aid in biodiversity restoration and promote a clearer path to sustainability.