CA ANZ provided feedback to the Productivity Commission to assist with the opportunities in the circular economy exploration phase to help shape key issues that will be considered in the upcoming inquiry.

Key Points:

1. Support for Circular Economy:

• CA ANZ supports the Australian Government's exploration of sustainable solutions that benefit both the environment and businesses.

2. Circular Economy Success Stories:

• Emphasis on measuring companies' social and environmental impacts alongside financials to capture the true benefits of circular businesses.
• Highlighting Mint Innovation's sustainable metal recovery from e-waste in New Zealand and Australia as a success story.
• The International Federation of Accountants (IFAC) and the Coalition Circular Accounting (CCA) report on how accountants can drive the circular economy.

3. Priority Opportunities:

• Australia is set to mandate climate-related financial disclosures aligned with International Sustainability Standard Board (ISSB) standards from 1 January 2025.
• Government's role in facilitating business participation through funding and innovation support.
• The Ellen MacArthur Foundation report on how the circular economy can reduce emissions by designing out waste and keeping materials in use.

4. Hurdles and Barriers:

• Many businesses lack understanding of the circular economy and its benefits.
• Government incentives and penalties are suggested to encourage participation and reduce waste generation.

5. Government's Role:

• Encouraging businesses to invest in circular economy practices through funding and innovation.
• Promoting the reuse of waste materials to reduce the need for carbon-intensive production.
• Expanding the sustainable finance taxonomy to include circular economy activities.

6. Additional Comments:

• Collaboration with the Association of Certified Accountants (ACCA) on a playbook for SMEs to apply sustainable practices.
• Evaluation of the circular economy landscape in New Zealand by the Sustainable Business Network and Grant Thornton.