The Development Path of Global Recycled Metals Industry Driven by ESG Background [Recycled Metals Forum]

At the 2025 SMM (2nd) Global Recycled Metals Industry Summit Forum - Main Forum hosted by SMM Information & Technology Co., Ltd., Xie Xiaoying, the Director of Sustainable Development Business at Shanghai Lvran Environmental Information Technology Co., Ltd., delivered a speech on the topic of "The Path for the Development of the Global Recycled Metals Industry Driven by the ESG Context."

The Impact of ESG on the Metals Industry

ESG Accelerator | Investors

ESG is no longer an optional choice; it is a fundamental license for the operation and competition of the entire value chain.

All relevant national laws and regulations:Including permits and regulations related to land clearance, rights of way, physical and economic resettlement of project-affected populations, workplace health and safety; other national regulatory requirements outlined in environmental and social impact assessments, mitigation measures, and environmental and social management plans developed for the project;

International standards:As stated in international conventions and committed to in the company's sustainability policies, including the Equator Principles IV, the International Finance Corporation's (IFC) 2012 Environmental and Social Sustainability Performance Standards, applicable World Bank Environmental, Health, and Safety Guidelines, and other voluntary principles;

Industry best management practices:The International Council on Mining and Metals (ICMM), the Extractive Industries Transparency Initiative, codes of business conduct, and human rights policies; as well as health, safety, security, environmental, and community (HSSEC) plans developed for the project and related entities, based on due diligence, benchmarking, and external professional advice.

ESG Accelerator | Supply Chain

Taking Apple as an example, its goal is to achieve 100% recycling of the following materials by the end of 2025:

Rare Earth Elements (REEs):100% recycling of REEs used in magnets in all Apple products by 2025.

Gold Plating:100% recycling of gold plating on all rigid and flexible printed circuit boards designed by Apple by 2025.

Tin Solder:100% recycling of tin solder on all rigid and flexible printed circuit boards designed by Apple by 2025.

Cobalt:100% recycling of cobalt in all batteries designed by Apple by 2025.

Recycled Metals as an ESG Solution

From the perspective of greenhouse gas (GHG) emissions, the production of primary aluminum results in 100% GHG emissions due to the high energy consumption in bauxite mining. In contrast, the production process of secondary aluminum significantly reduces GHG emissions, saving up to 95% of energy consumption.

The following is a comparison of the characteristics of recycled metals and mining:

Challenges:

Recycling Technology

By investing in advanced technologies, various complex materials can be effectively processed while reducing processing costs.

Supply Chain Stability

To ensure the reliability of the supply chain, manufacturers may adopt a vertical integration strategy in key markets, but this strategy can increase operating costs.

Pricing Mechanism

The price of scrap metal is usually referenced to the market price of the relevant primary metal. Carbon pricing and carbon border adjustment mechanisms can help enhance the economic benefits of underutilized scrap metal resources.

Key Takeaways

Key ESG Risks

Environmental: Heavy metal pollution, water scarcity, climate impact, waste.

Social: Land/resettlement conflicts, labor rights, community health and safety.

Governance: Compliance gaps, ethics, weak grievance mechanisms.

ESG Accelerators

Highlights the factors driving ESG compliance and sustainability (investors, regulations, and supply chains).

Recycled Metals

Emphasizes the role of recycled metals as a core ESG solution.

Remaining Challenges

There are still obstacles hindering the full implementation of ESG, such as gaps in metal recycling technology, supply stability issues, and a lack of pricing mechanisms for calculating ESG value.

Click to view the special report on the 2025 SMM (2nd) Global Recycled Metal Industry Peak Forum