3. The Challenges of the Circular Economy

This chapter provides a broad overview of circular economy, its foundational characteristics and discusses its implications for accounting information. It discusses the enablers and barriers to the transition from the current linear business models to circular economy, contemplating the macro, meso and micro levels, including the accountant’s role in interventions and the accounting developments required. Multi-disciplinary collaboration at all levels and education is fundamental to the transition with full systems thinking and consistent approaches to measurement and metrics in order to assist in clarifying the complex interrelationships within supply chains. The accounting profession needs to ensure that they are an integral element, enablers rather than inhibitors, in progressing the move away from the linear and towards the circular economy.