Capgemini-金融實(shí)踐的四個(gè)轉(zhuǎn)變促進(jìn)循環(huán)經(jīng)濟(jì)（英）

FOURSHIFTSINFINANCIAL

PRACTICESTOBOOSTTHE

CIRCULARECONOMY

CircularEconomy

Copyright?2023Capgemini.Allrightsreserved.

Theprogresstowards

acirculareconomyisslow

Thecirculareconomyappearstobereachingatipping

pointasafast-growingnumberoforganizationsare

startingtoembedcirculareconomytargets,initiatives,

andstrategies.Amongconsumercompanies,theglobal

retailerIKEAaimstobeacircularbusinessby2030,

andUnileveraimstouse100%reusable,recyclable,or

compostableplasticpackagingby2025.Andamong

cities,Amsterdamisembeddingthecirculareconomy

intoitspoliciesandroadmaps.

Atanationallevel,Scotland’snationalZeroWaste

Scotlandacceleratorprogramfosterscirculareconomy

growthinsmallandmedium-sizedenterprises.Regional

andnationalregulatorypressuresarealsocominginto

effect,suchastheEUCircularEconomyActionPlan,

andmorerecentlytheUK’sCriticalMineralsStrategy.

However,despitethesepositivesignals,theworldis

notbecomingmorecircular.Accordingtothe

2023

CircularityGapReport

,materialscycledbackintothe

economyaftertheirusefullifeaccountforonly7.2%

ofthetotalin2023,downfrom8.6%in2020.Froma

macroperspective,thereisalongwaytogoregarding

providingtherightinfrastructure,accesstofinance,

supplychaintransparency,andregulations.

Fromacompanyperspective,despitetheriseof

circular

economybusinessmodels

,progressisslow:current

managementpracticesarenotinsyncwithcircularity,

startingfromfinancialandaccountingtoolsand

approaches.Weknowthatsystemicchangedoesnot

comeeasily,especiallywhenwhatisrequiredis

afundamentalrethinkofthewaythatorganizations

dobusiness.

Theroleoffinance

andaccounting

Attheheartofunderstandingwhyorganizationsare

stillstrugglingtolaunchandscalecircularityisthe

conceptofvalue.Thecurrentanddominantwayof

thinkingaboutvalueislinear.Alltheseeminglylaudable

andusefulpractices,criteria,andmetricsadoptedso

farhavebeenconsistentwiththislinearparadigm.

Butthecirculareconomytransformsthevalueconcept.

Valueiscreatedthroughwhatwouldhavebeen

labelledinalineareconomyaswaste-throughcircular

valuechains,networks,andstrategiessuchasleasing

andre-definingproductsasservices.

Tryingtogaininternalbuy-inandnavigategatekeeping

processesforcircularinvestmentisdifficultwhen

organizationsaredominatedbylinearpracticesand

thinking.Thisisespeciallytruewhensignificantbudgets

andfinancingisneededtosupportthescale-up.

01CircularEconomyCopyright?2023Capgemini.Allrightsreserved.

Partnerships

Leadership

Ifthecirculareconomyistomovefromenthusiasm

toachievement,weneedtoshiftfromatheoretical

debateaboutthestrategicbenefitstoconcrete

businessinnovationspoweredbynewfinancialmodelsandmetricsthatenablepeopletowritesuccessful

businesscases-tounderstandandpricerisks,andtofinanciallyaccountforthetransitiontoanonlinear

model.Updatedfinancialtoolswillneedtoaccountforthecomplexityofavalue-chain-widetransformationalshift,redefiningthevalueofresourcesandincludingmultiplefuturescenarios.Ourresearchandconsultingexperienceswithpioneeringcompaniesdemonstratethatachangeisnotonlynecessary,butpossible.

EmpoweringFinance:TakingtheleadwithFourKeyShifts

Thecirculareconomychallengeissocomplexthatwearenowatapointwhereitrequiresfinanceandaccountingteamstoassumealeadingrole.This

isbecausetheseteamscontributetooverall

decision-makinginorganizations,includingOpEx

andCapExbudgets,assessingrisksandviability

associatedwithnewbusinessmodels,andtypicallyholdinglargeamountsofdatatomanagereportingandtransparency.Aspartofthisrole,theywillneed

tobecomeinnovationagentsandshowtherestoftheorganizationthewaytomakechangepossible.

Tomakethisshiftmoreactionable,werecommend

focusingonfourmainfinancially-orientedcomponents,seeFigure1.Thefirsttwo(#1and#2)wouldbepart

ofanymajorinnovativeeffort,butcircularitymakes

themevenmorecriticalandurgent.Theothertwo(#3and#4)arestronglylinkedwithnewsustainabilityandcircularityimperatives.

4.Report

externalities

3.Shiftfromwasteto

value

2.Reviewfinancial

toolsandmetrics

1.Shifthorizons

Figure1:FourKeyShiftsandtwocriticalenablersinfinancialpracticestoboosttheadoptionofacirculareconomy

1Shifthorizons

Maximizingtheuseofresourcesandthewiderbenefitsfromacirculareconomywillnotbevisiblewithina

financialquarter,atleastnotintheearlierstages.

Organizationsmustavoidthetrapofshort-termismandredesigntheirmetricsandthestructureoftheirprofit&loss(P&L)toincentivizelonger-terminvestment.

Therealityisthatashort-termfocuskillsvalue-creatingopportunities.Whilethisconceptisgenerallyaccepted,thecorporaterealityremainsstubbornlylockedontheshortterm.AtUnilever,thenCEOPaulPolmanmadeafrontrunningmovetosimplystopquarterlyreportingin2009,makingitclearwherethecompany’sfocus

shouldlie.Thiswasaboldmovefortheorganizationanditsinvestors,butitpavedthewayfortheten-year

horizonoftheUnileverSustainableLivingPlanand

helpedcreateacultureoflong-termthinkingandbeingpurpose-driven.Theresultsspeakforthemselves.AfterPolman’stenure,totalshareholderreturnsequaled

292%incomparisontothe131%FTSEindex.

Thiswayofthinkingcanbeapplicableinthe

automotiveindustry.Carsharingandsubscription

servicesarekeyroutestopromotecircularityand

extendvehicleuse.WithmanyOEMsshiftingtowardsfuturemobilityservices,thishighlightsapotential

newrevenueopportunitytoo;focusonutilizationandnotunits.So,withthislogic,whyhasnogreattractiondevelopedoverthepast5–10years?

02CircularEconomyCopyright?2023Capgemini.Allrightsreserved.

Theseservicesoftenfocusonnewcarfleets,resultinginelevatedcostsandunattainableprices,often

neglectingsustainabilityandlong-termvalueintheir

businessmodels.Recently,ONTO,aUKEVsubscriptionservice,wentintoadministration,crippledbyfalling

residualvalues.ThishighlightsoneofmanychallengesforOEMsexpandingintocircularofferingsandfacing

2Reviewfinancialtoolsandmetrics

Anabundanceof

research

showshowtraditional

financialtoolstendtofavorlinearthinking,leadingtoinaccuraciesduetoincorrectassumptionsandamisguidedunderstandingofwhichquestionstoask.

Thewell-documentedshortcomingsofNetPresent

Value(NPV)anditsanti-innovationbiasbecome

criticalissueswhencircularityistakenintoaccount.

Forinstance,linearassumptionsdonotconsiderthe

uncertaintyofclimate-relatedsupplychaindisruptionsortheoverallimpactonsociety.Indeed,theyusuallyassumethebusinesswillcontinuetobeviableeven

ifthecompany(orthesector)doesnotinvestin

circularityand,moregenerally,insustainability.Thisleadstoinaccuratescenarioplanningwithinadequateversionsofthefuture.

Scenarioplanningandinvestmentdecisionsrequirea

deeperunderstandingofclimate-relatedrisks,includingthepricevolatilityofresources,supplychainand

operationalresilience,consumerpressure,aswellas

thebusinessandsocialimpactsofnewlaws

andregulations.

Additionally,inalineareconomy,innovationriskaroundaproductorserviceisnotwellunderstoodbecause

theexplanatorydataiseithernotavailableoroften

notusedintherightway.SellingaT-shirt,forexample,islesscomplexthanassessingriskanddetermining

theTotalCostofOwnership(TCO)forclothes-sharing

platforms—acommonchallengeobservedacrosssectorswhentransitioningfromownershipto

service-basedmodels.

Theinnovationprocessitselfrequiresarevamp,with

revisedmetricsthatnotonlyreflecttheambitionof

changebutalsotheuncertaintyofthefuture.PilotsandMVPsshouldbedesignedtolearn,engagethevalue

chain,andcollectdata.Trialanderrormustbeviewedasapositiveapproachandafail-fastmentalityneedstoprevail.

3Shiftfromwastetovalue

Inthelineareconomy,

residualvaluerefers

totheestimatedvalueofafixedassetattheendof

itsleasetermorusefullife.Typically,producersandmanufacturersgeneratewastethatisoften

notredistributedorreused.Thisby-product,often

therisk/rewarddilemma.Withoutareprioritizationoflonger-termreturnsandsustainabilitybusinesscase,

thechallengesofmeetingnewsalesvolumes,usingthesamemetricspersist.

Shiftingthehorizonisaprecondition.Withoutthisshift,talkingaboutsustainabilityandcircularityisuseless,ifnotdangerous,asitcreatescynicism.

03CircularEconomyCopyright?2023Capgemini.Allrightsreserved.

referredtoasanundervaluedresource,contradicts

theprinciplesofacirculareconomywhenitsworthis

measuredsolelybyresidualvalueaccounting.Insteadofrecognizingitasavaluableresource,itisunfortunatelylabelledaswaste.Accordingtothe

CoalitionCircular

Accounting(CCA)

,thisfinancialmetricdisincentives

innovativeapproachestomaintaintheirvalue.

Instead,theCCAsuggestslookingatwastethrough

thelensof‘residualresources’tochangemindsetsandunderstandthehiddenvalueoftheresources.

Afour-yearstudyby

TheRenewalWorkshop

evaluateddifferentfashionbrands’perceptionofwasteandits

lackoffinancialvalue.Across50productassessments,83%ofproductsthatwereclassifiedaswastecould

havebeenrenewedandresold.Thishighlightsthe

potentialofaccountingandfinancialmechanismsto

unlocknewprinciples.Onceorganizationsshifttheir

mindsetfrom‘itiswaste’to‘ithasvalue,’products

andresourcescanbemanagedinawaythatmaximizestheiruseandreducestheirnegativeimpactonthe

environment.

4Reportexternalities

Integratingsocialandclimatefactorsintoaccountingreportingcanhelporganizationsmanagetheirimpactandkeeptrackofperformance,identifyhotspotsforchange,andcreateinternalincentivestoimprove.Asmanyapproachesandinitiativeshavealreadybeen

developed,thecurrentpriorityisshiftingtowardsaconvergenceofstandardsandtheimplementationofconcrete,real-worldapplications.Organizationscanbegintounderstandthewiderimplicationsandexternalitiestheycontributetoandcreatestrategicplanstoreduceimpact.

Akeychallengetoreportingoncircularityisthelackofstandardizedmetricsorindicators.Thereareseveral

frameworks–suchasWBCSDTransitionIndicators,

IISOonCircularEconomy,EUtaxonomyforsustainableactivities,GlobalReportingInitiative’sWasteStandard,theEllenMacArthurFoundation’sCirculytics,and

CradletoCradleCertified–buteachhasitsownpurposeandmethodology.

Maturesecond-handmarketsareagoodindicator

tounderstandthevalueoftheresourcesandthe

pricethatconsumersarewillingtopay.Thinkof

organizationssuchastheUKretailerTesco.Itlaunchedan

onlinemarketplace

thatenablessupplierstosell

ordonatesurplusstocktoothermanufacturers,

ortocommonlyknownplatformssuchaseBay,

FacebookMarketplace,Vinted,andDepop.However,marketplacesstilldonotaccountforthefuturevalueofresources.

Alonger-termapproachtoresidualvaluewouldtreat

themascontingentassets.Thisiswheretheassetsarevaluedonpotentialeconomicbenefit,dependenton

futureevents–forexample,lawsandregulationon

criticalmaterialsandwaste.Thisapproachisbecomingprevalentinthebuiltenvironment,wheretradeable

futurecontractsaredevelopedbasedonthevalue

ofbuildingmaterialsatthepointofdeconstruction.

Residualvalueisnottheonlymetricthatcanbeused

tovalorizewaste,butitcanbeagoodstartingpointforbusinessestounderstandvalue.

TrueCostAccounting

couldbeapromisingnew

approach:itconsiderstheholisticcostsassociatedwiththefulllifeofaproductorservice.Forexample,the

truecostofawoodentablewouldincludenotonlythedirectcostslikerawmaterialsandlabourbutalsothefuturecostassociatedwiththetreenotsequesteringcarbonforitslifetime.Whilesomeexperimentsoftruecostaccountingarefoundinthefoodandagriculturesector,thereisstillagenerallackofdataandofan

establishedframeworkandconsensusonprinciples.

Amorematureapproachisthe

IntegratedProfit&

Loss(IP&L)

methoddevelopedbytheImpactInstitute,whichsupportsorganizationsinunderstandingtheir

impactbeyondfinancialprofitandlossandtakesintoaccountvaluegeneratedforallstakeholders(clients,

organization,society,investors).Negativeimpactsareestimatedbyreferringtothecostsofrestorationor

compensation.Gainingmomentum,in2019,ABNAmrobecamethefirstbanktopublishanimpactstatementbasedonthisframework.

04CircularEconomyCopyright?2023Capgemini.Allrightsreserved.

EmpoweringFinance:TheimportanceofPartnershipsandLeadershipasenablers

Partnershipsandcollaborationarecrucialtoachievingatruecirculareconomy,giventheinterdependence

ofsupplychainsacrossavarietyoforganizations.

DavidMonciardini,aSeniorLecturerattheUniversityofExeterintheUK,says“Theconventionalapproachtoaccountingpracticesremainslimitedtothe

boundariesoflegallyconstitutedentities,andthisisamajorchallengeforSustainabilityCircularEconomyaccounting”.

Systemictransitionstowardssustainableandcircularecosystemsrequirenetworkedcollaborationacrossmultiplestakeholders,includingprivatefirms,

consumer-citizens,public-sectororganizations,andsocialenterprises.However,thisinterdependenceof

Acalltoaction

Companiesthatreallywantto‘walkthetalk’on

sustainabilityandcircularityshouldsignificantly

reviewtheirsystems,practices,andmetrics.Finance

andaccountingteamsarethelubricantoilthatcan

unlockthemechanicstoenablethebusinesscaseforcircularbusinessmodels,throughtherightmetricsandfinancialmechanisms.

Organizationsmustnotbeafraidtoexperimentandlearnintheircircularinnovationinitiatives.

actions,resultingfromlateralinformationflowsandnetworkedcollaborations,isproblematicinterms

oftraditionalfinancialplanning,budgeting,and

performanceevaluationpractices.Whatisneededisanunderstandingofeffectiveinter-organizationalcooperation,includingcostmanagementacross

organizations,supplychains,andsupplierselectionpractices.

Giventheimmaturityofthecirculareconomytransitionatasystemiclevel,courageousleadersneedtotaketheleadandinvolveotherleadersbothwithinandoutsidetheirorganizations.ThinkofthelikesofYvonChouinardfromPatagonia,RayAndersonatInterface,andPaul

PolmanatUnilever.

Withouttheknow-howtodevelopacircularbusinesscase,companiesmuststartwithmakinginnovative

incrementalchanges,pilots,andMVPs,tocollatedataandlearnfromsuccessesandfailures.Onthebackofthoselearnings,theywillbeabletoinnovateunder

newprinciplesanddevelopbusinesscasemodelsthatareuniquelyalignedtotheirproduc