Background
The transition to a circular economy challenges traditional business models and financial thinking. As companies aim to minimise material use and retain value for as long as possible, new approaches are needed for measuring and reporting business performance. Conventional financial statements are no longer sufficient to reflect the sustainability or circularity of business operations—new metrics, accounting methods, and reporting tools are required.
At the same time, EU regulations on circular economy and sustainability reporting are evolving rapidly. This creates pressure on businesses and financial professionals to adopt new ways of planning, monitoring, and reporting economic activities. Education in financial management plays a key role in ensuring that future professionals are equipped to meet these demands.
This educational material provides an introduction to how financial and managerial accounting, as well as reporting practices, can support the shift towards a circular economy. The content is specifically aimed at:
- higher education students
- financial professionals
- teachers and trainers
- sustainability and sustainability experts
The content has been developed as part of the Erasmus+ ACES Accounting for Circular Economy and Sustainability project, which promotes the integration of circular economy principles into accounting education and provides practical, digital learning materials for higher education and professional development.
The educational material is lisenced with the CreativeCommons Attribution-NonCommercial-ShareAlike 4.0 International deed.
Learning objectives and the educational content
This educational material consists of an expert discussion in the form of a podcast, complemented by a Sway presentation of examples and findings from the ACES project.
The educational material will help its user
- understand why the circular economy challenges traditional accounting.
- identify new accounting challenges in the circular economy business.
- gain perspectives on how one’s own work or competence can be developed to support the circular economy.
In the Circular economy in practice – what does an accountant need to know -podcast, Haaga-Helia’s accounting lecturers explore real-world accounting challenges faced by circular economy businesses — from valuing recycled materials to rental models and VAT margin schemes. The content offers practical insights and examples for accountants navigating the evolving landscape of sustainable business practices.
Reflection exercise based on the podcast
1. What challenges do accountants face when working with circular economy business models, based on the podcast?
2. Which skills or competences do you think are most important for accountants in this context, and why?
3. How could accounting education better prepare professionals for circular economy practices?
The Sway presentation Accounting for circular economy consists of examples and findings from the ACES project.
Reflection exercise based on the Sway-presentation
1. How should accounting practices be developed to better support circular economy business?
2. How can you promote the circular economy in practice in your role or organisation?
3. What connections do you see between accounting, sustainability reporting and the circular economy?
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