{"id":177478,"date":"2025-12-24T09:14:14","date_gmt":"2025-12-24T09:14:14","guid":{"rendered":"https:\/\/raed.academy\/?p=177478"},"modified":"2025-12-24T09:24:28","modified_gmt":"2025-12-24T09:24:28","slug":"the-costs-of-the-circular-economy","status":"publish","type":"post","link":"https:\/\/raed.academy\/en\/the-costs-of-the-circular-economy\/","title":{"rendered":"The costs of the circular economy"},"content":{"rendered":"
\"Dr.

Dr. Agust\u00edn Moreno<\/p><\/div>\n

Agust\u00edn Moreno Ruz,<\/strong> professor at the Faculty of Economics and Business of the University of Barcelona<\/strong> and a regular collaborator of the Royal European Academy of Doctors<\/strong> (READ), has published in issue 91 of the specialized journal \u00abT\u00e9cnica Contable y Financiera<\/em><\/strong>,\u00bb corresponding to December 2025, the article \u00abSustainability in Internally Generated Goodwill. Costs in the Circular Economy,<\/em><\/strong>\u00bb in which he analyzes the real impact of European sustainability regulations on business management and argues that their implementation should not be understood as an administrative burden, but rather as an opportunity to improve efficiency, profitability, and the internal value of companies.<\/p>\n

The expert focuses on the European Sustainability Reporting Standards, particularly requirements E5-4 and E5-5 on resource inflows and outflows and the circular economy, and emphasizes that their correct implementation requires robust internal cost accounting systems. For Moreno Ruz, the circular economy model can only be managed effectively if companies are able to accurately quantify the economic effects of substituting, reusing, or recycling materials. In this context, he notes, cost accounting ceases to be a secondary instrument and becomes a strategic tool that makes it possible to anticipate deviations, improve decision-making, and rigorously assess the environmental and economic impacts of production processes. The article highlights that the informational benefits of these systems far outweigh the costs of their implementation, especially for small and medium-sized enterprises.<\/p>\n

Throughout the text, a practical case of joint production is developed to illustrate how different decisions regarding the treatment of by-products\u2014sale, internal recycling, or disposal\u2014have direct effects on unit cost, inventory, and the income statement. This example underscores that sustainability is not only an environmental objective, but also a factor that has a tangible influence on competitiveness and the company\u2019s economic structure.<\/p>\n

\"\"The analysis is extended to the concept of internally generated goodwill, an intangible value that does not appear in financial statements but is manifested in the company\u2019s innovative capacity and its potential to generate future profits. Moreno Ruz links this goodwill to innovation driven by the proper application of the circular economy and European regulations, emphasizing that improved performance and corporate reputation strengthen the company\u2019s position vis-\u00e0-vis shareholders, customers, and suppliers.<\/p>\n

The article concludes that sustainability, far from being an obstacle, can become a driver of innovation and growth if it is integrated into internal management using quantifiable, results-oriented criteria. For the author, the real challenge is not complying with regulations, but deciding with what level of ambition and at what pace companies wish to move forward on what he calls the \u00abinnovation highway,\u00bb<\/mark> which connects profitability, environmental responsibility, and long-term value creation. Moreno Ruz has specifically studied the accounting value of internally generated goodwill, taking into account the demands of markets and investors, as well as the proper functioning of the company, and advocates adapting accounting practices to market requirements and expanding its field of research.<\/p>\n","protected":false},"excerpt":{"rendered":"

Agust\u00edn Moreno Ruz analyzes the real impact of European sustainability regulations on business management in his latest article, “La sostenibilidad en el fondo de comercio interno. Los costes en la econom\u00eda circular”<\/p>\n","protected":false},"author":16,"featured_media":177299,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[238,228],"tags":[],"class_list":["post-177478","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economic-and-business","category-law","et-has-post-format-content","et_post_format-et-post-format-standard"],"yoast_head":"\nThe costs of the circular economy - Royal European Academy of Doctors<\/title>\n<meta name=\"description\" content=\"Agust\u00edn Moreno analyzes the real impact of European sustainability regulations on business management in "La sostenibilidad en el fondo de comercio interno. 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