Accounting for Circular Economy and Sustainability - Innovative training solutions in higher education facilitating accounting for the circular economy

The EU aims to make the economy sustainable by turning climate and environmental challenges into opportunities, as reflected in the European Green Deal. One way to achieve this is to resource efficiency through a transition to a Circular Economy (CE), fundamentally different from the linear (take-make-waste) economy. We figured that accounting and reporting in circular economy companies might have to settle for practices that don't really work for them as our current accounting standards are designed for a linear economy. In Addition, The European Commission (EC) provided new guidelines on non-financial reporting, supporting transition such as the Corporate Sustainable Reporting Directive (CSRD). Despite easing requirements, the fact remains that there are several frameworks used for sustainability reporting, including the Global Reporting Initiative Standards and the Greenhouse Gas Protocol. With our project we aimed to collect knowledge and understanding, raise awareness, provide training and support within the frame of these phenomena. We also wanted to make the learning of difficult and often boring subjects more motivating. Thus, we also took up the challenge related to teaching skills and pedagogy.

The ACES project aimed to support higher education institutions in enhancing their financial administration teaching addressing better the needs for sustainable accounting and reporting practices, particularly for businesses driven by sustainability concerns or adopting circular economy (CE) business models. We also aimed to increase understanding of the role and potential of accounting standards and their interpretation in supporting the transition to CE by: 1) Combining existing research with insights from leading companies in CE to verify our concern and project hypothesis. 2) Creating novel teaching materials for European HEIs, which could be integrated into both qualification programs for future professionals and flexible training aimed at upskilling current professionals. These teaching materials were shared into three modules: CE Business models, CE and managerial reporting, CE and Financial reporting. Adapt the materials created to our everyday education. 3) Finding, developing, testing and adapting fun, effective and innovative pedagogical methods. 4) Sharing the created content online (synchronized and asynchronized) and in the classroom and make them transferable. 5) Increasing awareness.

We completed literature reviews on three topics. In addition, we conducted Interviews with company representatives, in total 25 companies. The collected information was used to justify the high-level learning objectives for the 15-ECTS course and the learning objectives for each of the three 5-ECTS modules. Based on learning objectives, we constructed a study plan consisting of three 5-ECTS modules and materials for these. From these broad modules, we extracted three 1-ECTS modules (micro-credentials) for continuous learning needs. Learning objectives were also formulated for these purposes. These 1-ECTS modules were designed as pilot modules, which were built on a learning platform that is open to everyone. We mapped out and adopted new teaching methods and applied them in our project, both in teaching and in our work, using a comprehensive pedagogical model called learning arcs. We piloted our materials and pedagogical approach in the classroom and online. We collected feedback on our results and activities. To engage the target groups, we promoted our project results in events, online and in publications. We adapted project results to our normal teaching.

The ACES Project completed a literature review report consisting of three independent chapters (Circular Economy Business Modules, Circular Economy and Managerial Reporting, and Circular Economy and Financial Reporting) and a summary. The final report also considers the results of the interviews. Based on the collected knowledge, the project identified competence requirements, which were then converted into learning objectives for higher and continuing education curricula. These are documented in a comprehensive curriculum that can be divided into three independent parts. Additionally, for continuous learning, there are three concise descriptions, each worth one ECTS credit. Suggestions for teaching methods and materials are included for both. A result that can be immediately put to use is designed for individuals who are already employed. For them there is a complete online course that anyone can sign up for free. The project also produced publications that contribute to social discourse and can be used as teaching materials. The results also include individuals who have benefited from our content, such as financial management teachers and accountants in Circular Economy companies.