Phoenix achieves measurable, structured emissions reductions

Phoenix Recycling Group is mitigating climate change by delivering on the promise of the circular economy – and that is some feat considering it owns a fleet of diesel heavy goods vehicles, plant and equipment, and ships globally.

The countrywide one-stop shop of circular services is in its fourth year voluntarily carbon reporting with Toitū Envirocare, recycling critical raw materials recovered from metals, batteries, metallic packaging, solar panels and e-waste for decarbonisation. It recycles more than 98 per cent of what it recovers.

While the board structured a strategy – the fundamental ethos and the why – the sustainability journey has been challenging, says Chair Grant Graham CMInstD.

“We are emissions-compromised being so far away from our global partners,” he says. “Our shipping routes, timing and ship biofuel transitioning are out of our control. In FY23, our most recent audited year, our marine transportation made up over 60 per cent of our total emissions for that year.”

That forced Phoenix to look closely at all its other emissions factors and fuel sources.

“This has been predominantly an operational remapping of how we can best utilise the new nationwide network we have created by horizontally and vertically integrating our business. The more we have control of, or own, or engage with, our supply chain, the more levers we have been able to pull to deliver our sustainability strategies,” Graham says.

“For example, our FY24 pre-audit data we are preparing now is already showing positive signs. We recycled 25 per cent more volume than in FY23, with only an uplift of two per cent in diesel fuel usage – so we are more efficient with our own fleet and equipment while also recycling more. 

“We have achieved a reduction of seven per cent in third party transportation provider kilometres across the country, so exporting out of more ports is reducing our on-road kilometres within New Zealand and therefore reducing emissions.”

Graham admits it is difficult to set science-based targets for a business that has grown considerably within a short time, but they now have data to inform decisions.  

“Due to our rapid growth, we have had to reestablish a base year, three years in a row,” he says. “Finally, now in our fourth year, we have tangible similarities between FY23 and FY24 to compare our data and we can reflect on strategies and decisions we made at board and senior leadership team level. 

“Those strategic decisions became operational decisions. Now we have proven data for those decisions which are or are not working, or which decisions are going to take more time to create impact.

“Building on more years of voluntarily carbon reporting will enable us to reflect trends. We have had to take a bottom-up approach, transitioning one asset at a time, challenging our supply chain and our own internal operations to find opportunities to decarbonise, one emissions factor at a time.”

Graham says transparency is essential in communicating your sustainability journey. 

“Independent auditing of our sustainability data became paramount to quash greenwashing/greenhushing claims and track footprint with growth and progress with execution on strategies.”

Phoenix’s sustainability strategy has been simple: make recycling easier and more accessible for New Zealand. The next natural step on its sustainability journey was to track emissions to deliver those circular economy services. 

“We became relatable to many stakeholders and customers who have mandatory climate-reporting requirements. We were walking the walk, too, on a sustainability journey that requires transparency, action and delivery, proven with sustainability data.

“Some days we feel like a startup accelerating at pace, but we have a large manufacturing and collections operational business we are making smarter, integrating AI and technology where we can so we can view our data and continually evolve, improve and ultimately recover and recycle more.

“It took us five years to develop a battery recycling market solution – to have assets where we needed them, servicing capacity and capability, upskilling our workforce to safely manage a continually evolving waste stream that is a high-risk flammable item, and insuring end-to-end – across multiple suppliers locally and offshore – that we are a responsible recycler adhering to the international Basel Convention.”

Phoenix shareholders have taken this solution another step further by investing in a flagship facility in central Auckland to showcase the product stewardship and recycling of batteries. It opens in Onehunga in December.

Environmental, social and governance (ESG) has always been a whole board responsibility with clear champions and subject matter experts, says Graham, adding they have seen an increasing need from corporate clients for ESG solutions.

“Often companies have complex reporting and recycling requirements, and it takes time to understand and prioritise what needs to be done. Collaborating and partnering can help you to accelerate the delivery of ESG outcomes in a clear and measurable way. It can also help you become more efficient as a business.

“ESG can help you strengthen customer relationships, help build brand value, streamline operations and find material cost savings and efficiencies. It also helps you to really understand your supply chain and cost base.”

He says getting started is easy. “Make ESG part of the board agenda, develop a straightforward ESG strategy with clear and measurable goals, cascade priorities into leadership KPIs, and allocate dedicated resources is the key. Develop your board reporting and use data to surface insights and opportunities.”

Year-on-year, the Phoenix board is seeing improvements in sustainability data quality. “Upskilling carbon fluency quickly is a must as this is an on-trend topic. The board has spent considerable time planning where Phoenix sits and where we can make a tangible contribution.

“The board strategy has enabled the business to evolve, extend and diversify to meet the demands of the market now. BAU is not Phoenix’s current state. There is certainly a level of corporate responsibility for all businesses to act and not sit on the fence waiting for central government regulations/investment in infrastructure or mandating with new and revised regulations to push faster.”

He says the private sector has a role to play in being first movers, engaging and collaborating with others with similar values and complimentary skills and services.

“With significant climate events affecting New Zealand, we all need to move faster. Create solutions that work now; sustainably, in continuity for the foreseeable future.”