A collaboration between AICPA, CIMA, and universities outlines strategies for enhancing sustainability in the clothing retail industry.
On February 18, 2025, AICPA & CIMA, in collaboration with the University of Surrey and Cardiff University, announced the publication of a significant report titled “The Circulatory Radar: A Framework for the Circular Economy in Retailing and Manufacturing.” This initiative is supported by The Chartered Institute of Management Accountants’ General Charitable Trust and aims to provide a strategic framework tailored for organizations within the clothing retail industry to enhance sustainability practices.
The report particularly addresses the rising concern of online returns, citing statistics from The Guardian that in 2024, over 20% of non-food items purchased in the UK were returned. This phenomenon led to a staggering £6.6 billion worth of products being sent back, primarily driven by the convenience of online shopping. Unlike traditional brick-and-mortar establishments, which can manage returns more effectively, many online retailers often resort to disposing of new, unworn items, contributing to an unsustainable linear economy—characterized by a cycle of take, use, and dispose.
To combat this issue, “The Circulatory Radar” emphasizes the necessity for clothing retailers to adopt Circular Business Models (CBMs). The report outlines seven interconnected mechanisms pivotal in fostering circularity within the retail clothing sector. These include strategic organizational positioning, product stewardship, R-strategies (which encompass recycling, repair, refurbishment, and rethinking), social dimensions, the use of sustainable materials, sustainable operations, and eco-design.
A key feature of the report is the introduction of the Circularity Radar, an assessment tool that aids business leaders in evaluating their existing practices, measuring environmental impact, and pinpointing avenues for sustainable growth. This quantitative tool serves as a foundation for establishing circular business models and ensuring sustainable operations.
Furthermore, the report identifies various external factors influencing the implementation of CBMs, such as governmental policies, regulations, taxation systems, customer attitudes, and shareholder expectations. It stresses the importance of collaboration, transparency, and innovation in overcoming these hurdles to achieve greater circularity.
As consumer demand for sustainable practices increases, the report notes that transitioning to a circular business model could provide organizations with a competitive edge. By using the insights provided in “The Circulatory Radar: A Framework for the Circular Economy in Retailing and Manufacturing,” businesses can assess their current sustainability initiatives and focus on key areas for improvement within the retail and manufacturing sectors.
For those interested in exploring the Circularity Radar tool, it is freely accessible as an interactive application online. Additionally, further resources related to sustainability and environmental, social, and governance (ESG) issues can be found on the AICPA & CIMA website.
Source: Noah Wire Services
