The Roles of the Financial Professional in Combating Climate Change Through Business Circularity: Implications for Education and Research

The concept of circular economy (CE) has received a lot of attention over the past decade as organizations struggle to move away from linear and fundamentally unsustainable economic activities that contribute to climate change. Although the literature on circular economy has already been extensively reviewed from various perspectives, it has not yet been comprehensively evaluated to take stock of the role of the finance professionals (e.g., the chief financial officer (CFO), management accountant, or business controller) in moving organizations toward circular business activities. This chapter examines two key aspects. First, it argues that a finance professional is potentially positioned well to participate in the journey toward circularity and in the fight against climate change. We examine the role this professional can play in either expediting or hindering the shift toward circular business practices. These circular activities are aimed at mitigating a company’s carbon footprint by curbing emissions and resource utilization while fostering sustainable innovations. This study identifies multiple roles of finance professionals in this transition towards circular production and specifically highlights for each of these roles their impact on organizations’ efforts to reduce their contributions to global climate change. Second, it discusses how universities can promote the profession’s further adoption and development of these roles through research, training, and teaching in higher education.