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Financial Accounting in the Circular Economy

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Financial Accounting in the Circular Economy
Type: Research
Year: 2022
Language: English
Redefining value, impact and risk to accelerate the circular transition

Accounting and financing have the potential to drive the circular transition. Current accounting and reporting techniques that have been designed for the linear economy are often ill-equipped to truly capture the value and positive impact of circular businesses. Circular accounting describes the practice of measur-ing, analysing and reporting on a company’s financial and non-financial performance, to truly reflect the value and impact of circular businesses on all relevant stakeholders. The transition to a circular economy will require rethinking our present way of doing business—and we must not overlook the pivotal role of accounting.

This publication offers a synthesis of learnings from a series of four papers, which—through real-life business case studies—investigated the present arsenal of accounting and reporting solutions and their potential to support the circular transition.