Circular economy – The role of management accountants

Programme Overview

Circular economy is an alternative economic model to the current linear economic model we are in. In a linear economy, we manufacture, distribute, and consume products leading to generation of waste. This model leads to degeneration of the environment not only through resources extraction, but also with the disposal of waste. In the alternative model, which is called a circular economy, we consciously redesign resource cycles (or nutrient cycles) at the time of design of products, components, and materials, so that options to regenerate these are proactively mapped out, before they are manufactured.

Australia has recently started transitioning to a circular economy and circular economy policies have been launched in several states including Victoria and NSW, and there is global movement promoting circular economy as a means of conserving resources.

Circular economy is a business and economic proposition as much as it is an environmental proposition, therefore awareness of business leaders is crucial to transition to the new model.  The session will introduce the principles of circular economy to management accountants and discuss how planning transition will have an impact on key knowledge areas of managerial decision making.

Areas of Focus

• What circular economy is about?
• How would it transform businesses?
• How circular economy thinking will need to be integrated into managerial decision making?