The Ellen MacArthur Foundation is a United Kingdom-based, non-profit charity that is active in multiple continents around the world and focuses on accelerating the implementation of an environmentalist “circular economy” to combat climate change and reduce material waste. [1]
It receives money from other foundations and its “core philanthropic partners” including the Eric and Wendy Schmidt Fund for Strategic Innovation, and the global environmentalist foundation MAVA. [2]
The foundation also created the Circular Economy 100 (CE100), a network of businesses including Apple, Avery Dennison, the Coca-Cola Company, HP, McDonald’s, Microsoft, Target Corporation, and Teleplan, committed to its environmentalist ideology. [3]
Founding
The Ellen MacArthur Foundation is a non-profit charity based in the United Kingdom formed in 2010 by retired English sailboat racer Ellen MacArthur. The foundation works around the world in Asia, Europe, Latin America, and North America and has a United States affiliated foundation. MacArthur, created the foundation “to accelerate the transition to a circular economy.” [4]
The concept of a circular economy is founded on components, products, and raw materials’ having the ability to lose as little value as possible over time, meaning that products and components will be reused to their maximum, raw materials will be used as little as possible, and maximum possibility of recycling raw materials. A circular economy is also reliant on renewable energy. [5]
Funding
The Ellen MacArthur foundation receives funding from multiple sources including trusts and grants from private foundations, and through its global partners which include organizations such as Google, Renault, and Phillips. [6]
Due to the foundation being based in the United Kingdom, it is not possible to find much information on its income and expenditure, however; the foundation released an abridged accounts report in 2017. According to the report the Ellen MacArthur Foundation received £5,190,881 (approximately $6.74 million as of January 2020) in unrestricted funds, and £3,503,354 (approximately $4.5 million) in restricted funds which amount to £8,694,235 (approximately $11.3 million) in 2017. The report also states that the foundation received a total income of £9,814,283 ($12.7 million) in 2016. [7]
The foundation’s expenditure amounted to £5,001,142 (approximately $6.5 million) in unrestricted funds, and £3,238,340 (approximately $4.2 million) in restricted funds, giving a total expenditure of £8,239,482 (approximately $10.7 million) in 2017. The report also states that in 2016 the foundation had £5,770,949 (approximately $7.5 million) in expenditure. [8]
The Ellen MacArthur Foundation receives money from other foundations such as the C&A Foundation, which focuses on creating a more environmentalist-friendly fashion industry. The Ellen MacArthur Foundation received €475,000 (approximately $530,000 as of January 2020) over one and a half years from C&A to create an action plan towards a “circular fibers economy”, and another €260,000 (approximately $290,000) over one year to help make the fashion industry into a “circular textiles economy,” through its “Make Fashion Circular” initiative. [9]
The foundation was awarded £1,000,000 (approximately $1.3 million as of January 2020) from the United Kingdom’s People’s Postcode Lottery, to support the “Make Fashion Circular” initiative that is also backed by the C&A Foundation. [10]
The global environmental conservation foundation MAVA, which is listed as a partner, contributed 1,000,000–1,500,000 Swiss Francs (approximately $1.03-$1.55 million as of January 2020) to the Ellen MacArthur Foundation of the course of 36 months in order to provide “core support” to the foundation. [11]
The Ellen MacArthur Foundation also lists multiple “core philanthropic partners” that include the Eric and Wendy Schmidt Fund for Strategic Innovation created by former CEO of Google Eric Schmidt and his wife, Wendy Schmidt. [12]
The Ellen MacArthur Foundation USA, the foundation’s United States affiliate, reported total revenues of $470,690 in 2016, $276,500 in 2017,[13] and $962,765 in 2018. [14]
Climate Change
One of the main concerns listed by the Ellen MacArthur Foundation, which can allegedly be helped by a circular economy, is climate change. According to the foundation’s website, “renewable energy is not enough,” and there needs to be a “fundamental shift in the global approach to tackling climate change.” [15] The foundation also claims that switching to renewable energy can only cut greenhouse gas emissions by 55%, as 45% of emissions come from how products are used and produced. [16]
With the support and funding of Wendy Schmidt, the Ellen MacArthur Foundation awarded $1,000,000 to “five recyclable and compostable packaging solutions,” which were developed to decrease waste into the ocean. [17]
The environmental company Veolia partnered with the Ellen MacArthur Foundation as part of its Food Initiative which seeks to create circular economy solutions in order to “reduce CO2 emissions by 4.3 billion tonnes per year,” and to “improve health and soils by preserving 15 million hectares of arable land per year.” [18] According to the person in charge of the Food Initiative, it will assist in “tackling the climate crisis, restoring biodiversity, and improving human health.” [19] The global food giant Nestle also joined the Food Initiative. [20]
Another partner of the foundation which joined due to the focus on climate change is the C40 Cities Climate Leadership Group (C40), which connects 90 of the world’s greatest cities, representing 650+ million people and one-quarter of the global economy. The partnership between the foundation and C40 is built upon accelerating a circular economy as it will provide “radical, innovative and transformational solutions,” that will “deliver on the ambition of the Paris Agreement and prevent catastrophic climate change.” [21]
Aligned Organizations
The CE100 network is a group of corporations and businesses that have joined the Ellen MacArthur Foundation in committing to a circular economy.
Global partners of the CE100 network include Unilever, SCJohnson, DS Smith, Phillips, and Danone. [22]
Blackrock, the world’s largest asset management firm, partnered with the Ellen MacArthur Foundation and created the BGF Circular Economy Fund in 2019. The fund, which was provided $20,000,000 in initial seed funding by Blackrock, will be used to invest in companies that set their own circular economy targets, provide solutions to accelerate the implementation of a circular economy, and companies that benefit from transitioning into using a circular economy framework for their operations. [23] The global head of thematic and sector investing at BlackRock had initially been working on creating a fund focused on recycling and sustainable batteries; however, the focus changed to the circular economy as there was more investment opportunity due to the focus on trends such as climate change, resource scarcity, and urbanization. [24]
Google, another global partner, co-released a report with the Ellen MacArthur Foundation which focused on looking at how artificial intelligence can accelerate a circular economy. According to the report, artificial intelligence can assist in the acceleration process by designing products, components, and materials. Another claim from the paper suggests using artificial intelligence to use “real-time and historical data from products and users,” to help increase product circulation by things such as “demand prediction, predictive maintenance.” [25]
Members of the CE100 network include Apple, Avery Dennison, the Coca-Cola Company, HP, McDonald’s, Microsoft, Target Corporation, and Teleplan. [26]
Other affiliated organizations relating to the Ellen MacArthur Foundation include the Ellen MacArthur Cancer Trust, which focuses on teaching young cancer patients and survivors to sail,[27] and the Ellen MacArthur Foundation Trading Limited, a child company of the foundation. [28]