How to find the value of circular impact in business: Circular impact management and financial reporting | Knowledge Hub | Circle Economy Foundation
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Business case
How to find the value of circular impact in business: Circular impact management and financial reporting
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This white paper details the importance of measuring circular impact and using it to steer decision making in business. Using the case study of Meerlanden, the paper shows how data on circularity can bolster profitability in business while limiting negative environmental and social externalities through two avenues: integrated profit and loss and multiple balance sheets. Next steps and recommendations are provided for companies, financiers and accountants. 

Problem

This white paper elaborates on the need and potential of integrating information on circular impact into the financial reporting of a company.

Solution

STANDARDISATION: There needs to be comparability between different circular impact measurements to create a level playing field;

IMPORTANCE OF CIRCULAR IMPACT DATA: Circular impact should explicitly inform management and financial decision making;

GETTING STARTED: Start measuring and monitoring in order to practise generating and using data;

CIRCULAR IMPACT AS A COMMUNICATION TOOL;

INTEGRATION OF NON-FINANCIAL INFORMATION IS KEY

Additional information

More information about the Coalition Circular Accounting: https://www.circle-economy.com/programmes/finance/coalition-circular-accounting

Attachments
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