Reconomy measures its circularity gap impact for the first time as it makes major sustainability progress

Reconomy has published its 2024 Annual Sustainability Report reflecting a year of significant progress against its sustainability targets.

As a business focused on advancing circularity and creating a more sustainable, waste free world, the company was keen to measure the overall circularity of its own business operations to give it a clearer picture of its impact and to see how it can drive greater circularity progress. In 2024, it physically managed 2.3 million tonnes of its customers’ material – including returns – and virtually managed a further 4.2 million tonnes of materials such as packaging and batteries, with 45% going to closed loop recycling. 

This represents a circularity gap of 55%, calculated using its own methodology based on the global circularity gap of 93.1%. Reconomy is actively working to reduce the gap through improved processes, innovative service models and a dedicated ‘Close the Gap’ campaign focused on collaborating with customers and partners across the value chain.

The company also tracks its contribution to shifting the Earth Overshoot Day – the point at which global resource consumption exceeds the Earth’s ability to regenerate those resources. In 2024, it measured and estimated that its 2024 activities shifted the Earth Overshoot Day by 12 minutes. 

Reconomy achieved a number of awards including an EcoVadis Gold certification in 2024, with two brands – Valpak by Reconomy and RLG by Reconomy – receiving Platinum scores. Additionally, it was awarded the Sustainable Business of the Year award at the Lloyds Bank British Business Excellence Awards and Impact Business of the Year at the City AM Dragon Awards. 

The company is committed to leading by example and was an early adopter of the Taskforce on Nature related Financial Disclosures (TNFD) framework to help measure and disclose nature related risks and opportunities. In 2024, it introduced sustainability linked pay for executives, ensuring that environmental and social impact is always prioritised in its growth. Reconomy also refreshed its sustainability strategy and strengthened its reporting. Additionally, it conducted its first double materiality assessment, a major step in making sure that the business remains focused on the topics that matter most to its stakeholders.  

Guy Wakeley, group chief executive, said: ‘We are pleased to present this report to our stakeholders that demonstrates strong progress against our sustainability commitments and towards tackling one of the greatest structural and environmental challenges of our time. 

‘The global economy is overly reliant on the extraction of virgin materials to satisfy consumption demands, with only 6.9% of resources making their way back into the economy leaving a circularity gap of 93.1%. The exponential growth in material extraction is driving unsustainable levels of greenhouse gas emissions. At Reconomy, we are determined to decouple growth from resource use and reduce emissions by helping businesses close the circularity gap and keep resources in use for longer.

‘We look forward to building on our progress and to continue working closely with our customers and all our stakeholders to advance circularity.’

Diane Crowe, group sustainability director, added: ‘Over the past year, we continued to embed circularity and sustainability across our own business and as we strive to walk the walk. Having refreshed our sustainability strategy, strengthened our reporting and completed a double materiality assessment, we remain focused on making a material impact on the areas that are most important to our stakeholders and to leading the way towards a more circular and sustainable economy.’