New Report Unveils Framework for Circular Economy in Retailing and Manufacturing 

February 18, 2025 – AICPA & CIMA media advisory

AICPA & CIMA, in collaboration with the University of Surrey and Cardiff University, has published a report titled ‘The Circulatory Radar: A Framework for the Circular Economy in Retailing and Manufacturing’. This comprehensive study founded by The Chartered Institute of Management Accountants’ General Charitable Trust explores and evaluates circular business models (CBMs) within the clothing retail industry, providing a strategic framework for organisations to enhance their sustainability practices.

The report addresses the pressing issue of online returns, which, according to The Guardian, saw more than a fifth of non-food items returned in the UK in 2024, with serial returners sending back £6.6 billion worth of products. Unlike brick-and-mortar stores that can efficiently handle returns, many online retailers find it easier and more profitable to dispose of brand-new, unused items in landfills. This linear approach to the economy, where materials and goods are taken, used, and disposed of, has significant negative environmental and social impacts.

‘The Circulatory Radar: A Framework for the Circular Economy in Retailing and Manufacturing’ report emphasises the need for clothing retailers to adopt CBMs to break this cycle and achieve a balance between economic and environmental sustainability. The research identifies seven interconnected mechanisms that can create circularity in the retail clothing industry: strategic organisational positioning, product stewardship, R-strategies (such as recycling, repair, refurbishment, rethink), social aspects, sustainable materials, sustainable operations, and eco-design.

The Circulatory Radar, an assessment tool developed from these mechanisms, allows business leaders to analyse their current practices, measure their environmental impact, and identify growth opportunities for sustainability. This quantitative tool provides a foundation for creating a circular business model and achieving sustainable business operations.

‘The Circulatory Radar: A Framework for the Circular Economy in Retailing and Manufacturing’ report also highlights the external factors that affect the implementation of circular business models, including governmental policies, laws and regulations, taxes, customer perspectives, and shareholder influence. The Circulatory Framework emphasizes the importance of collaboration, transparency, and innovation in overcoming these barriers.

As more consumers favour sustainable businesses, adopting a circular business model can lead to competitive advantages. ‘The Circulatory Radar: A Framework for the Circular Economy in Retailing and Manufacturing’ report provides organisations with the tools and insights needed to assess their current initiatives and identify focus points for achieving circularity in the retail and manufacturing industries.

The Circularity Radar is a free and open-source interactive application available from merlano.shinyapps.io/circularity. For more information about AICPA & CIMA’s resources on sustainability and environmental, social, and governance (ESG) issues, please visit aicpa-cima.com/topic/sustainability-esg.

Contact Information

Martyna Makiel

External Relations Manager

AICPA & CIMA

T: +48 22 222 19 90 | M: +48 662 800 455

Martyna.Makiel@aicpa-cima.com

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