Foreign Direct Investment (FDI) is a powerful driver of sustainable development, fostering technology transfer, market access, and competitiveness. Yet, without sustainability safeguards, FDI risks triggering environmental degradation and social inequities. This report—developed by Circular Innovation Lab—introduces a rating system based on circular economy indicators to evaluate industries and sectors under the Philippines’ Strategic Investment Priority Plan (SIPP).
The tool, designed in partnership with the Board of Investments (BOI), builds on global frameworks from UN ESCAP, OECD, FAO, and WRI. By integrating social, environmental, and economic dimensions, it ensures that investment incentives are aligned with circular economy principles and the UN SDGs
Objective
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Provide a comprehensive rating system—developed by Circular Innovation Lab—to assess sustainability of sectors and industries under SIPP.
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Support incentive allocation that promotes economic recovery, sustainability, and circularity.
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Introduce a visual, user-friendly Excel-based tool that highlights sustainability opportunities and risks for companies.
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Ensure fair, transparent, and consistent evaluation of FDI projects in line with circular economy practices
Status
Completed
Methodology
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Mixed Methods: Combines qualitative and quantitative approaches, drawing on OECD, UN ESCAP, FAO, WRI, and ILO frameworks.
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Indicator Framework: Three main pillars (i) economic, (ii) social, (iii) environmental, mapped against the UN SDGs, grouped using Stockholm Resilience Center’s approach.
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Binary Rating System: Simple yes/no assessment for relevance and risks, aggregated into sector-level sustainability scores.
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Thresholds: Minimum sustainability scores (0.33 per pillar, 0.5 overall) ensure balanced sectoral performance.
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Testing & Iteration: Circular Innovation Lab piloted the tool in the agriculture sector (perennial and non-perennial crops), with refinements based on BOI and stakeholder feedback
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Circular economy policy frameworks