Driving Circular IT in Australia

Introduction: The Circular Economy in Australia

The global move toward a circular economy is more urgent than ever, especially for Australia, which faces significant challenges with waste management, resource recovery, and environmental sustainability. The Australia’s Circular Economy Framework, released in 2024, outlines the nation’s vision to double its circularity rate by 2035, aiming to reduce waste, promote resource efficiency, and create sustainable economic growth. At the heart of this transition lies the opportunity to rethink how industries manage products and materials, particularly in sectors such as IT.

In Australia, the IT sector—often at the forefront of technological innovation—has a crucial role to play in achieving these goals. As a business that specializes in the repurposing, recycling, and extending the lifecycle of IT assets, Recirc IT is uniquely positioned to support Australia’s circular economy. In this whitepaper, we explore the key findings from Australia’s Circular Economy Framework and align them with how Recirc IT can contribute to a more sustainable, circular future for Australia’s IT sector.

Key Findings from the Circular Economy Framework

The Circular Economy Framework highlights Australia’s current circularity rate of just 4.6%, well below the global average of 7.2%. The framework sets ambitious goals for doubling the nation’s circularity by 2035, targeting a 10% reduction in material footprint, a 30% increase in material productivity, and 80% resource recovery from waste. It stresses the importance of innovation, market development, and collaboration across sectors to build a thriving circular economy.

A key focus of the framework is the economic, environmental, and social benefits of transitioning to circular models, including:

• Job creation in the recycling and remanufacturing sectors
• GHG emissions reduction, contributing to climate change mitigation
• Economic resilience by reducing reliance on virgin materials and encouraging innovation
• Collaboration across industries to foster circular supply chains and resource-sharing models

The IT sector is identified as a key player in driving circularity, given its substantial material use and growing environmental impact due to e-waste. As we explore the following 12 points, we will see how Recirc IT is already aligned with the framework’s goals and how we can contribute even more effectively.

 1.  Australia's Circular Economy Status and Opportunities for IT

Australia’s current circularity rate of 4.6% highlights a major opportunity for industries like IT to make a real impact. The circular economy in Australia is still in its infancy, and the IT sector is a prime candidate for transformation. With e-waste being one of the fastest-growing waste streams, companies like Recirc IT are essential in leading the charge toward circular IT solutions— whether through asset repurposing, refurbishment, or innovative recycling solutions.

By expanding efforts in IT asset life extension and refurbishing old hardware, Organisations look have at many parts of the Circular Economy. Companies will need to try and affect change at the consumption level.This means a collective effort to have OEM’s slow the rate of consumption down. We currently see that this is only speeding up as they set refresh timelines around software updates. More pressure needs to be applied to the OEMs to extend the life of the assets. Slowing consumption drives less waste into the marketplace and will have significant impacts on Australia’s ability to achieve its circularity rate.

 2.  Waste Management and Resource Recovery
Australia diverts 26 million tonnes of waste from landfills annually, but a significant portion of that waste is not properly recycled. E-waste, in particular, is one of the most challenging materials to process effectively. Companies need to take a deeper look into where their waste is going and how it is broken down. We have already seen Australia do this with plastics and ensuring that they are dealt with in the country.

We also need to see this with metals. Metals should be broken down in Australia and put back into the supply chain.

 3.  Circularity in Australia’s Key Sectors
The framework highlights critical sectors for circular economy success, including industry, agriculture, built environment, and resources.

One of the key sectors being Mining. We have noticed that Mining needs to make a concerted effort to try and do more around their waste management. Ideally mining companies would look to achieve beyond the norm in Sustainability by considering a few factors.

1. Reduce their consumption in IT. Look to extend the life of assets or Reuse assets in some cases.
2. Repurpose first rather than waste. Old assets can make their way back into the supply chain to be used by others.

If the units cannot be repurposed in their whole form, then we should look to extract the minerals from the assets and have those added back into the supply chain.

 4.  Greenhouse Gas Emissions Reduction Potential
The transition to a circular economy could reduce Australia’s greenhouse gas emissions by up to 14% by 2035, according to the CSIRO’s modelling. In the IT sector, emissions come from the production, use, and disposal of electronic products. By repurposing IT assets and promoting recycled IT hardware, Recirc IT can help reduce the carbon footprint associated with the production of new hardware and cut down on Scope 3 emissions related to material use.

 5.  Circular Economy in Australia’s Critical Mineral Sector
Australia is a major exporter of critical minerals, but there’s increasing pressure to reduce the environmental impact of extraction. Recirc IT can help by recovering precious metals like copper,gold, and silver from e-waste, contributing to a circular supply of critical materials. This helps reduce the need for new mining activities and supports the critical minerals industry’s goal of minimizing environmental impact.

 6.  Market Development and Investment
The growth of the circular economy will rely heavily on market demand for circular products. By investing in circular IT solutions, businesses can meet the rising demand for sustainable products and services. Recirc IT can lead the way in developing innovative business models for IT asset repurposing and reuse, encouraging investment in the circular IT sector while promoting greater resource efficiency.

 7.  Design for Longevity and Circularity
One of the central tenets of the circular economy is designing products for durability and repairability. Although rt doesn’t manufacture hardware, we advocate for purchasing durable and repairable IT equipment and supporting businesses that embrace design for circularity. We work with clients to extend the life of their IT products and help them make more sustainable purchasing decisions.

 8.  Behaviour Change and Systems Thinking
The transition to a circular economy requires a cultural shift in how we view products and waste. Recirc IT is at the forefront of driving this change in the IT sector by encouraging businesses to adopt circular procurement practices and rethink how they handle IT waste. Through education and advocacy, we help businesses make the case for circular IT solutions.

 9.  Collaboration for Circularity
Collaboration is essential to scaling circular practices across industries. Recirc IT actively collaborates with other sectors, including manufacturing, construction, and agriculture, to deliver circular IT solutions. By working together, businesses can share resources,develop better design practices, and support one another in achieving circular economy goals.

 10.  Scaling Circular Practices and Innovation
Innovation is crucial to scaling circular practices. Recirc IT is committed to driving innovation in the IT asset management space, exploring new methods to extend the lifecycles of IT products and recycle hard-to-process materials. Through continuous improvement and technology development, we aim to lead the IT industry’s circular transformation.

For example, we have already widened the scope of our business outside of just networks to see how we can play a role on other parts of the infrastructure space. We have partnered with one company in Dubai who refreshes laptops, replacing some of the key components but using the same shell.

In servers, we have branched out to be able to achieve the same. We have documented evidence that shows old servers can in fact produce the same output as new servers without the need to replace them.

All of these involve using what you have and slowing down consumption. Slowing consumption means slowing waste.

 11.  Circular Economy and Job Creation
NSW Circular has released a new report, The Circular Economy Opportunity in NSW, which sets out the evidence for why transitioning from a linear to a circular economy will be vital for job creation and economic recovery post-COVID-19.

It also announced the appointment of Australia’s first circular economist, Dr Kar Mei Tang, as its Chief Circular Economist.

NSW Circular CEO Lisa McLean said: “The circular economy can generate up to 50,000 jobs in NSW over the next five years as the circular economy grows and is embraced by industry.

“Every sector has waste and uses raw materials for its goods and services. To realise the economic opportunity, we need more data on the value of waste thrown into landfill. The Chief Circular Economist role has been created to advise on the economic potential in materials like e-waste, solar panels, plastics and glass, spotlight investment and policy opportunities, to drive the migration to the circular economy in Australia.”

The report, which brings together for the first time a snapshot on the circular economy in NSW, highlights how NSW can unlock a jobs, growth and resource boom and be the powerhouse of circular economy innovation in Australia.

Dr Tang said Australia landfills 40 per cent of its core waste, with many of our landfills approaching capacity in the coming years: “If the whole of Sydney Harbour were a landfill, we would fill it before 2040. If we don’t transition to a circular economy, we will continue to lose valuable resources that generate new jobs and industries, build sustainable supply chains, and are key to our economic recovery.

“With the official unemployment rate sitting at 6.9 percent across the nation and 7.2 percent in NSW, and many industries facing structural change, creating new jobs and stimulating new investment is the number one priority,” Dr Tang said.

“The circular economy presents a timely and urgent opportunity to create new resilient jobs that are fit for the future. For example, there are 3.3 times more jobs in recycling for every job in landfill,” Dr Tang said. “We are fundamentally talking about rebuilding an economy by producing more and designing out waste - and we need this for productivity growth.”

NSW Circular will be releasing monthly market spotlights on how much materials are worth to the market, along with helping create new marketplaces and bringing together new circular supply chains.

Key facts

• Adopting circular economy initiatives in the food, built environment and transport sectors is worth $210 billion to Australia’s GDP by 20481
• Based on NSW’s share of national GDP, could add up to $7.6 billion to NSW’s GSP by 2025, and up to $69 billion by 2048
• Circular economy initiatives in the built environment, transport, manufacturing and recycling industries can create some 150,000 ongoing jobs across Australia by 20252
• Accelerating our recycling rate alone can create 28,000 new jobs in Australia by 20253
• Australia is the largest materials user per capita in the region
• NSW generates three times the global average CO2 emissions per capita
• Australia has the third lowest rate of material productivity and lowest manufacturing self- sufficiency in the OECD.

McLean said, “NSW and Australia need to open their economies to new sustainable sharing and reuse solutions and business models that keep resources in the market for longer, like as-a-service models for clothing, white goods and mobility, recycled waste and water, and remanufacturing.”

“If we expand the circular economy opportunity in key sectors including health, water, transport, the built environment, electronics, solar energy and manufacturing - we can generate tens of thousands more jobs,” Dr Tang said. “Developing thriving and self-sustaining markets for recycled products in particular will help grow the competitiveness of the Australian manufacturing sector and help de-risk our supply chains by reusing our own recycled materials.”

NSW Circular CEO Lisa McLean welcomed the new appointment of Dr Tang: “Dr Tang’s expertise will assist NSW Circular as it defines the circular economy market opportunity and shares circular economic principles and approaches to build new industries, businesses and jobs.”

“The circular economy is the only real option we have to grow our economy, to deliver productivity and resilience as we head into a resource constrained future.” McLean said.

“This not only makes solid economic sense, but provides a key solution for Australia’s waste crisis.

Source: https://www.chiefscientist.nsw.gov.au/ news/nsw-circular-report-flags-massive-job- opportunities-in-circular-economy

 12.  Public Awareness and Education
Raising awareness of the circular economy within a company requires a strategic, multi-faceted approach. The first step is to align circular economy principles with the company’s core values and ensure leadership buy-in. Educating employees is equally crucial; internal workshops and campaigns can foster understanding and innovation, encouraging staff to champion these initiatives. Transparency is essential companies should track and share measurable results, such as waste reductions or emissions saved, through sustainability reports and certifications. Avoiding greenwashing by communicating clear, data-backed achievements builds credibility with stakeholders.

Engaging external audiences is another vital aspect. Companies can design products and services for circularity, such as modular or recyclable offerings, and market them as sustainable alternatives. Leveraging storytelling and visual content—such as videos or infographics—can simplify complex concepts and resonate with customers. Partnerships with suppliers, communities, or industry coalitions can amplify efforts and demonstrate a commitment to broader sustainability goals. Additionally, businesses should advocate for policies that support circular practices, further embedding the concept into systemic operations.

Finally, companies can inspire participation by offering tangible incentives, like discounts for trade- ins or rewards for recycling, and positioning circular initiatives as both sustainable and economically advantageous.

By combining internal education, external collaboration, and clear communication, businesses can elevate their role in the circular economy and inspire meaningful change across their industry and beyond.

Conclusion

A Circular Economy Check List for IT departments

To drive meaningful progress towards circular economy goals, companies must take actionable steps that integrate sustainability into their operations. Here’s a practical checklist to guide your efforts:

 1.  Engage with IT OEMs (Original Equipment Manufacturers)
Schedule regular meetings with your OEMs to discuss:

• Strategies to extend the lifecycle of IT assets.
• Availability of refurbishment or repurposing programs for hardware.
• Transparency around sustainability claims, such as CO2 reduction and material reuse.

 2.  Evaluate Waste Management Practices
Partner with waste handlers who prioritize circularity:

• Ask where your waste ends up and request traceable data.
• Verify if functional assets are being repurposed, repaired, or donated instead of being recycled prematurely.
• Ensure compliance with local environmental regulations and circular economy standards.

 3.  Conduct Internal IT Audits
Assess the inventory of IT assets to:

• Identify equipment that can be repaired or upgraded instead of replaced.
• Track devices approaching end- of-life and explore circular options (refurbishment, donation, or repurposing).

 3.  Foster Collaboration Across Departments
Integrate IT, procurement, and sustainability teams to:

• Develop clear policies for purchasing pre-owned or refurbished hardware.
• Monitor and report on circular economy metrics, such as e-waste reduction and resource recovery rates.

 4.  Adopt Circular Procurement Policies
Prioritize suppliers and partners who:

• Offer refurbished or sustainably manufactured IT
• products.Demonstrate robust plans for asset take-back and recycling programs.

 5.  Leverage Technology for Tracking and Transparency
Use digital platforms to:

• Track the lifecycle of IT assets from procurement to disposal.
• Document and verify waste handling processes by your partners.

 6.  Educate and Empower Your Team
Provide training to employees on:

• The principles of the circular economy.
• Practical steps for reducing waste and extending asset lifecycles.

 7.  Set Clear Sustainability Goals
Establish and communicate measurable targets:

• Reduce e-waste generation by a specific percentage within a defined period.
• Increase the proportion of refurbished assets in your IT portfolio.

By implementing these steps, companies can align their practices with circular economy principles, reduce environmental impact, and uncover new opportunities for cost savings and innovation.

Recirc IT is working exclusively in Circular practices with IT departments to help them meet them oncoming requirements of both the government and sustainability teams within companies.

We are advocating a different IT relationship to our clients. What we see is the prevalence of the OEM’s within IT teams. The OEM’s are driven around the linear economy, in that they drive consumption of new, expiring of functional assets and a simple e-waste approach.

You should reach out to our team today to consider different opportunities and approaches to how the circular economy can work in your business.