Page 69 - CMA Journal (May-June 2025)

Focus Section

• Asset velocity metrics, criteria for business deals, BPF • All other circles: Grading generally falls between
roadmaps, future business models, ethical Good to Satisfactory+.
frameworks, and information system upgrades
Sustainability (Gradients)
• Workforce capacity planning,
process redesign, performance Economic Socio-Economic
reporting, and adaptation to  Innovation, Capital Efficiency  Job Creation, Skills Enhancement
evolving technology trends  Growth Enhancement, Risk Management  Local Economic Impacts, Social Investments
 Total Shareholders’ Return  Business Ethics, Security
Notional capital sophists  Margin Improvement
Eco-Efficiency Social
Previously overlooked
 Resource Efficiency, Product Stewardship  Diversity, Labour Relations
regions—particularly in developing
 Life-Cycle Management, Product-to-Service  Human Rights, Community Outreach, Indigenous
and underdeveloped areas—now Shifts Communities
hold potential for talent Environmental Socio-Environmental
development and soft skill  Clean Air, Water & Land  Safety & Health, Environmental Regulations, Global
enhancement. To achieve a  Emissions Reduction, Zero Waste, Release & Climate Change
competitive edge, businesses must Spill Control  Access to Potable Water, Crisis Management,
Environmental Justice
focus on optimizing machinery and  Biodiversity
material flow through:
Sustainability Pillars and Business Value
• Flexible and skilled operational strategies, foresight,
and monitoring tools The sustainability pillars are typically designed to
promote business value and encourage profitability.
• Minimizing inefficiencies, implementing strong
management systems, and rebuilding soft-tech These pillars—encompassing environmental, economic,
capacity social, and human sustainability—focus on sustaining
business growth, enhancing global trade, ensuring
• Clearly defined trade terms, resilience parameters, capital inclusion, supporting future generations, and
and targeted capital investments improving quality of life.

Global Sustainability Circular Economy and Sustainable Business Models
The circular economy, or circular model of business
Circles of Sustainability
sustainability, is a system:
Economics Politics • Where processes are
iteratively dependent on
 Accounting & Regulation, Consumption & Use,  Communication & Movement, Dialogue &
Exchange & Transfer Reconciliation, Ethics & Accountability preceding outcomes with
 Labour & Welfare, Production & Resourcing,  Law & Justice, Organization & Governance, minimal deviations or
Technology & Infrastructure, Wealth & Representation & Negotiation, Security & abnormal disruptions
Distribution Accord
Ecology Culture • Where materials never
become waste and nature is
 Constructions & Settlements, Emission &  Belief & Meaning, Engagement & Identity,
Waste, Habitat & Food, Flora & Fauna Enquiry & Learning, Health & Wellbeing regenerated
 Materials & Energy, Place & Space, Water & Air  Gender & Generations, Memory & Projection, • Where products and materials
Recreation & Creativity
remain in circulation through
maintenance, reuse, refurbishment, remanufacture,
Grading for Circles of Sustainability recycling, and composting
• Vibrant / Good / Highly Satisfactory
• Where sustainable production layouts maximize the
• Satisfactory+ / Satisfactory / Satisfactory- / Highly use of throughputs, with waste and deflections
Unsatisfactory effectively recycled
• Bad / Critical Adopting a sustainable business practice involves

Inferences based on graphical layering of sustainability building a sustainable supply chain, maintaining a CO2
circles are summarized below: balance, and using eco-friendly materials in production;
minimizing environmental footprint, balancing
• Ecology: Grading ranges from Satisfactory+ to Bad / profitability with environmental and social impacts, and
Critical. This applies particularly to the sustainability reducing greenhouse gas emissions and upholding fair
of industrial or business operations. labor practices.

ICMA’s Chartered Management Accountant, May-June 2025 67