Closed Loop Fund Closes 3 Deals; Founder To Comment On NYT Op-Ed Touting Death Of Recycling
This post was originally produced for Forbes.
Closed Loop Fund, an impact investment fund, recently closed its first three deals, providing financing for municipal waste.
Rob Kaplan, Managing Director, explains the reason for the fund’s existence, “Lack of infrastructure is one of the greatest barriers to more recycling in the country. The Fund plans to invest $100 million in the U.S. recycling infrastructure by 2020. The Fund invests in the form of zero-interest loans to cities and low interest loans to recycling companies, to prove that recycling business models are financially sustainable now into the future.”
Kaplan described the recent transactions, saying, “On Sept. 24, Closed Loop Fund, an impact investment fund that makes below-market loans for recycling infrastructure, including household recycling carts, facilities, and technologies, announced its first three investments to bolster recycling infrastructure and reduce the over $5 billion dollars spent by cities annually on landfills.”
“The initial capital includes $7.8 million from Closed Loop Fund, which helped to unlock an additional investment of $17 million from other public and private co-investors, totaling $24.8 million. All three investments demonstrate replicable economic and environmental returns that recycling can bring to communities across the United States. This is the first of over $500 million the fund expects to unlock to invest in American recycling over the next five years,” Kaplan concluded.
Sunday’s New York Times included an op-ed by John Tierney that seemed almost to be an obituary for recycling under the headline, “The Reign of Recycling.” The piece argues that the environmental impact of recycling is modest when properly calculated.
On Thursday, October 8, 2015 at 2:00 Eastern, Kaplan will join me for a live discussion about these recently completed deals and we’ll get his take on the death of recycling as well. Tune in here then to watch the interview live. Post questions in the comments below or tweet questions before the interview to @devindthorpe.
More about Closed Loop Fund:
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. Closed Loop Fund 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 financial companies committed to finding a national solution to divert waste from landfills into the recycling stream in order to be used in the manufacturing supply chain. Key supporters include 3M, Coca-Cola, Colgate-Palmolive, Goldman Sachs, Johnson & Johnson Family of Consumer Companies, Keurig Green Mountain, PepsiCo, Pepsico Foundation, Procter & Gamble, Unilever, Walmart and the Walmart Foundation. For more information, visit www.closedloopfund.com.
Rob Kaplan proves that creating business value and passion for protecting the environment can peacefully co-exist. As Managing Director of the Closed Loop Fund, an innovative platform for impact investing, sustainability, and the circular economy, Rob oversees strategy and new business model development, as well as day-to-day operations. The Fund aims to scale recycling through zero interest loans to cities and investments in waste companies.
Prior to joining the Fund, Rob served as Director of Sustainability for Walmart Stores, Inc. where he was responsible for packaging, customer engagement, and integration with the Consumables business, including personal care and household cleaning. Rob led the creation of the Sustainability Leaders shop on Walmart.com to help consumers make responsible purchasing decisions online, built a unique collaborative initiative with competitors called the Beauty & Personal Care Innovation Accelerator, and cofounded The Closed Loop Fund. Rob previously led Walmart’s cross-functional efforts to eliminate 20 million metric tons of greenhouse gas from the supply chain.
Rob’s career has always been fueled by his passion for sustainability and social issues. Before joining Walmart, he helped lead corporate responsibility and brand strategy for Brown-Forman Corporation, which produces and markets spirit brands such as Jack Daniel’s. Rob developed marketing strategies to engage consumers, improve social and environmental performance, and advance business objectives.
Rob received his MBA from the Haas School where he studied marketing, corporate responsibility, and social entrepreneurship. Prior to graduate school, Rob was State Communications Director for Fight Crime: Invest in Kids California and a political consultant for M&R Strategic Services in Washington, DC. Rob received his undergraduate degree in political communication from the George Washington University where he learned that perception is reality. He lives in Brooklyn with his wife and two children.
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