Circular economy finance: Sectoral guidelines for commercial banks and development finance institutions in World Economy News 05/06/2026 Helping clients adopt more circular business models can help financial institutions reduce risk, build resilience and uncover opportunities. In turn, these actions contribute to economy‑wide benefits, including reduced waste, pollution, greenhouse‑gas and nature‑related impacts, as well as more resilient supply chains, new revenue streams and quality employment opportunities. This series of guidelines equips commercial banks and development finance institutions (DFIs) with a practical methodology to assess the circularity of client activities across portfolios and client segments. The guidelines help institutions determine which activities are circular and, where circularity criteria are not yet met, identify targeted engagement opportunities to support clients’ transition toward more circular business models. Designed to be readily operationalized, the guidelines support client advisors and relationship managers as well as risk and sustainability teams in screening individual transactions, mapping portfolio-level exposures, developing sustainability-linked financing products, and engaging clients on credible transition plans toward more circularity. UNEP FI invites banks and DFIs from all the regions to participate in a pilot programme throughout 2026 to test the guidelines’ applicability, share feedback on implementation challenges, as well as contribute to the refinement of the methodology and the development of practical implementation tools. Please contact us to learn more and get involved. Textile The textile sector consumes approximately 3.25 billion tonnes of materials annually, of which more than 99% are derived from virgin sources.[1] Applying circular economy principles can help reduce systemic risk, strengthen resilience, and unlock value across global textile value chains. These guidelines provide financial institution