How This Impact VC is Transforming Plastic Waste Management by Investing in the Circular Economy | Lucy Mortimer, Archipelago Ventures (#042)

When you think of the circular economy, it’s inevitable to also bring up the significant challenges in the transition to this model, such as high transition costs, logistical complexities, inconsistent regulatory support, and low business and consumer participation. Regardless of its complexities, there’s hope in impact venture capital.

To share how venture capital investing is playing a huge role in overcoming these barriers is today’s guest, Lucy Mortimer, a founding partner of Archipelago Eco Investors and Archipelago Ventures. She’s a visionary force who is paving the way towards a circular economy through funding innovative solutions and technologies that drive systemic change in the way we manage and use materials.

With a career spanning over two decades, Lucy has cultivated a rich expertise in climate finance, renewable energy, and ESG. Her early days as an emissions broker at CantorCO2e and her experience in founding Galápagos Environmental Consulting exposed her to plastic waste innovations, inspiring the birth of Archipelago Eco Investors in 2020.

Archipelago’s mission is to tackle the challenges in waste management at material recovery facilities (MRFs), particularly plastics and microplastics  — a sector full of inefficiencies and a disappointingly low rate of material reuse. They do it by supporting tech startups focused on plastic waste, from seed to Series B, aiming to increase the amount of material that remains within the circular economy while reducing carbon emissions and environmental impact.

In this episode, Lucy shares real examples of how Archipelago is revolutionizing the circular economy, digging into exciting projects and ideas in enzymatic recycling, pre-fill products, and bio-based materials. She also highlights the firm’s three-way investment strategy: the Future of Plastics Fund, the Circular Plastics Accelerator, and the Oceans Plastic and Microplastic Accelerator.

Join the conversation to learn how visionary investors like Lucy are not just betting on technology but are actively funding the transition towards a circular economy.
 
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Show notes: {link}

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About the SRI 360° Podcast: The SRI 360° Podcast is focused exclusively on sustainable & responsible investing. In each episode, I interview a world-class investor who is an accomplished practitioner from all asset classes.

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Key Takeaways

Intro (00:00)
Meet Lucy Mortimer & her path into finance & sustainability (03:13)
An overview of Archipelago Eco Investors & Archipelago Ventures (30:25)
What the circular economy is and the economics of plastic recycling (43:47)
Lucy’s focus on AI-enabled separation technologies (55:06)
Archipelago Eco Investors’ theory of change (01:02:33)
Examples of Archipelago’s investment strategy & expected market returns (01:09:29)
How Archipelago invests and measures impact outcomes (01:21:01)
Impact washing & improving recycling’s profitability (01:32:30)
Rapid fire questions (01:50:14)

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Additional Resources

Learn more about Archipelago Ventures here.

Connect with Lucy Mortimer on LinkedIn.

Learn more about Grey Parrot & The Global Plastics Treat