As nations grapple with stretching net-zero targets, investors are increasingly viewing companies with highly developed environmental, social, and governance (ESG) strategies as less exposed to risk and better placed to deal with uncertainty in the future.
So it is no surprise that 90% of organisations plan to increase their ESG investment in the next three years, according to 2024 research from KPMG. More than three-quarters of companies also stated plans to reorganise business lines to ensure that ESG targets and business strategy are more closely calibrated.
Central to the concept of ESG – and the global energy transition – is moving away from a linear economy and embracing a circular one. Statistics from the Ellen MacArthur Foundation, a charity working to accelerate the transition to a circular economy, show that the world will only achieve 55% of its net-zero objectives through renewable energy and energy efficiency. Tackling the remaining 45%, says the foundation, will require the circular economy.
One organisation that is advancing the circular economy in complex, regulated markets is Augean. Founded in 2004, Augean specialises in managing hard-to-handle wastes across the energy, nuclear, petrochemical, manufacturing, utilities, construction and cement sectors. Augean has published the Corporate Social Responsibility Report every year since it was formed. Yet for the circular economy to flourish, legislation and law enforcement surrounding waste crime – which costs the UK taxpayer £1bn a year according to 2021 data from the Environmental Services Association, 2021 – must be tightened.
“The circular economy also needs to recognise the myriad of challenges that responsible companies, who wish to comply, face,” says Gary Bower, who is director of corporate stewardship at Augean. “Policy should encourage companies to create materials that use the fewest hazardous chemicals. So, policies that reflect the need to create the least waste possible is the first principle.” From the perspective of companies operating at ground level, Bower notes that organisations promoting a regenerative approach need to be able to turn words into action.
Central to the concept of ESG – and the global energy transition – is moving away from a linear economy and embracing a circular one
“Companies must actively engage and work with local communities, parish councils and regulators to promote a culture of good governance, transparency and accountability,” says Bower. “Earning the trust of the community and regulators requires a lot of hard work but it is the best way to create a positive legacy.”
Thirdly, Bower believes there is a genuine need for industries such as the energy sector, the construction industry and many other trades “to understand their waste better”.
“Many companies, particularly those in hard-to-abate sectors, outsource brokers to manage their waste,” he says. However, Bower explains that if leaders have a holistic understanding of what is in their waste, and why it was produced in the first place, it makes Augean’s job easier. “Then, we can work in partnership with the organisation to achieve a much more effective circular outcome.”
Exploration and decommissioning in the oil and gas sector provides a good example of the circular economy in action. By removing oil from drill cuttings at its facility in Peterhead, Augean can use the recovered oil, which last year totalled over 318,000 litres, to power the machinery used to recover the oil in the first place, with any excess sent to third parties to produce processed fuel oil.
However, not every material can be cycled back into the economy after use. An example is battery black mass recycling, which recovers components and valuable metals such as lithium and cobalt from end-of-life batteries. However, the process also produces small quantities of residues that cannot be recycled and need to be safely managed.
While the safe and sustainable management of such residues is crucial, it is often an unconsidered part of the circular economy. Bower notes that this is a challenge that Augean has proactively sought to mitigate, building disposal facilities engineered to the highest standards and strictly monitored under the Environmental Permitting Regulations regime.
“Our landfills ensure that materials are held safely and not allowed to leach into the environment. They could be potential resource banks for heavy metals that could become exceptionally rare in the future,” says Bower. “All of the wastes have been analysed prior to deposit, they could potentially be recovered in the future if appropriate advances in technology make this viable. This further demonstrates our commitment to contributing towards a national circular economy.”
The sustainable impact of the circular economy is a cornerstone of Augean’s strategy, and it is one that extends to the impact the company can have in delivering energy security as a downstream operator in the UK waste market.
As the UK pursues clean energy and security through large-scale nuclear plants and small modular reactors, managing radioactive waste remains a critical challenge. A significant portion of this waste is classified as low-level radioactive waste (LLW). It has been government policy since 2007 for LLW to be disposed of into suitable landfill sites where rigorous safety checks have been made to ensure it will be safely managed. Augean is one of the few UK waste operators licensed to carry out this important work and handle LLW. The company also treats metalwork to remove surface radioactive contamination, rendering it safe for recycling while ensuring the remaining LLW is disposed of securely.
Additionally, Augean plays a vital role in managing Air Pollution Control Residues (APCr) from Energy from Waste (EfW) plants, which are currently vital to the UK’s energy security. These plants rely on abatement systems that generate APCr to prevent harmful emissions. Augean’s significant market share in handling these residues not only ensures the continuous operation of EfW facilities that supply power across the country, but makes Augean a nationally significant infrastructure provider in the waste management space.
For business leaders, partnering with expert waste management firms like Augean is not only a compliance measure but a strategic move toward achieving ESG goals. As regulations evolve and the push for a circular economy intensifies, having a trusted partner ensures operational resilience and sustainability. Aligning with such partners is crucial for safeguarding both the future of the organisation and the planet.
For more information please visit augean.co.uk
