Wednesday, May 29, 2024

The World’s First Authenticated Recycled Metals Marketplace Takes On the Sector’s Emissions

Share

Orbex, a leading global metals marketplace, is revolutionizing the trading of environmental commodities with the launch of the world’s first marketplace for authenticated recycled metals.

In response to the increasing pressure on businesses to prioritize environmental responsibility and develop sustainable supply chains, Orbex, which operates out of Chicago and London, has launched what it says is an innovative solution: the world’s first marketplace for globally recognized authenticated recycled metals.

According to Orbex, demand for secondary metals is expected to surpass primary metals within the next two decades, with a projected market value of up to $500 billion by the end of 2024. It’s building a network of Authenticated Recycled Materials Originators to help meet the demand for secondary metals and help metal-dependent industries reduce their carbon footprints.

Currently, approximately 400 million tonnes of metal are recycled annually. However, the absence of a globally-recognized and standardized authentication process to verify the origin of recycled metal and track its use through the supply chain poses significant challenges.

car factory
Courtesy Lenny Kuhne | Unsplash

This lack of authentication inhibits businesses from accurately assessing their environmental impact for ESG reporting and restricts suppliers from enhancing the value of high-quality secondary metals.

Orbex says it addresses these challenges through its new authentication marketplace. The company has secured one of the largest supplies of recovered ferrous metal in North America and has access to two percent of the global recycled aluminum and copper markets.

Orbex applies a certification of origination (COO) for all secondary metals transacted through its new marketplace. This certification offers detailed proof of provenance and origin, ensuring transparency and authenticity.

Orbex is committed to developing authentication standards and processes as part of an open-source initiative conducted at OASIS Open, a highly respected independent non-profit standards organization. OASIS Open has previously contributed to the establishment of standards for electronic invoicing and a standardized open interface that allows organizations to integrate biodiversity data into their software systems.

Orbex CEO Thomas Buchar emphasized the significance of this milestone. “Orbex is driving much-needed change by finally bringing globally-recognized standardization to an enormous market which until now has sat untapped and unimpeded,” he said.

Buchar says Orbex is the first piece of critical trading infrastructure and “will remain the original and most trusted source for secondary metals.”

Supported by leading metal recycler and processor SA Recycling, Orbex plans to expand its platform to include other environmental commodities, such as recycled plastic and organics.

wind turbines
Courtesy Mark König | Unsplash

Orbex’s initiative holds significant potential for positive change in some of the most challenging-to-abate sectors, including aviation, automotive, and construction. With metal production accounting for 4-7 percent of global greenhouse gas emissions, the need for sustainable alternatives is evident.

By promoting the trading of authenticated recycled metals, Orbex says it is actively driving positive change in sectors that have traditionally posed significant challenges in terms of reducing their environmental impact. Recycling metal can save as much as 95 percent of the energy needed to mine and produce primary metals.

According to the 2020 Wood Mackenzie Report, carbon emissions could drop by 600 megatons each year by reusing steel and aluminum scrap.

“We are proud not only to be promoting sustainable practices in sectors which are traditionally hard to abate but also to offer the unique opportunity to capitalize on increased demand for environmental commodities, ensure supply chain integrity, and assist multinationals in their transition to a circular economy,” Buchar said.

Related on Ethos:

Related

Ethical Footwear Label Sylven New York Ceases Production: ‘As Committed As Ever’

Luxury footwear label Sylven New York is the latest sustainable fashion house to announce it's closing its doors.

Fashion Workers Act Nears Approval as Major Brands Commit to Fair Wages

Fair wages for fashion workers get a push from Tommy Hilfiger parent PVH Group, H&M, and Asos as New York's Fashion Workers Act could soon become law.

Bio-Based Leather Industry Is a ‘Tidal Wave’: Uncaged Innovations Co-Founder Stephanie Downs

Will the leather category go the way of the milk category, with sustainable and more ethical alternatives becoming the new normal? For Stephanie Downs, co-founder and CEO of Uncaged Innovations, there's no doubt about it.

The 13 Most Trustworthy Fashion Labels

The fashion industry is complicated, to say the least. But these trustworthy fashion labels are proving progress, not perfection, is critical in creating more meaningful and lasting change.

Is Temu Ethical? Here’s Why You Should Be Wary of the Bargain App

With its cheap and extensive range of consumer goods, including fast fashion, Temu seems like the ultimate overnight success. But is it all too good to be true? Spoiler alert: probably, yes.