Scotland has issued a draft Circular Economy and Waste Route Map to 2030, building on a consultation in 2022 and outlining the strategic direction for its transition to a circular economy by 2030.

In its response to the draft, ICAEW expressed strong support for its intent and ambition, as tackling rising material use and improving circularity is integral to ICAEW’s mission to create a world of sustainable economies. 

However, while the response acknowledges that Scotland has made progress, there is a long way to go. Evidence reveals a stark ‘circularity gap’, with significant reliance on virgin materials. Only 1.3% of materials are being cycled back into Scotland’s economy, compounded by the substantial material footprint and extensive domestic extraction of fossil fuels. 

Rising material consumption also burdens public bodies with the financial costs of waste management. Moreover, the high material footprint has not translated into improved societal outcomes and Scotland still faces the highest rates of fuel poverty and food insecurity in the UK. 

ICAEW’s response emphasises that addressing these issues is not solely an environmental or social imperative but also a critical economic concern. The breakdown of natural systems poses increasing risks to businesses, financial systems and economies globally. A shift towards circularity is essential to help mitigate these risks. 

ICAEW pushed for the transition to be grounded in social justice and equitable sharing of the benefits, in line with the UN Sustainable Development Goals (SDGs). There is potential for job creation in sectors aligned with circular principles, but the Scottish government should also address the potential adverse impacts on other sectors that may experience decline. 

The response highlights that the private sector is crucial for realising the ambitions outlined in the Route Map. ICAEW calls for the government to put in place stronger incentives to encourage innovation and investment by businesses. This will require a combination of policy instruments such as fiscal reform and regulation, as well as measures to influence behaviour among consumers and the wider public. 

ICAEW emphasises the vital role of the accounting profession in driving necessary changes. “The issue of sustainability is one that ICAEW members are keen to help address and our response to the consultation on the circular economy in Scotland is an important part of the discussion around the next steps. We have an opportunity in Scotland to lead the way, but need to ensure the right steps are taken, fully engaging business to ensure that plans are workable, and ICAEW is ready to play a part in that,” says David Bond, Director of ICAEW Scotland. 

“A dramatic shift towards resource efficiency and a circular economy is a vital part of the transition towards achieving a net-zero, nature-positive, and socially just economy,” adds Richard Spencer, ICAEW’s Director of Sustainability. “Recognising its urgency, we are committed to working with governments and stakeholders to unlock solutions that will drive this transition.”