The 117-year-old steel maker that's key to solving climate tech's recycling issue

 A 117-year-old steelmaker that is key to solving the climate technology recycling problem

Founded in 1906, Schnitzer Steel has always focused on recycling scrap metal, but in recent years CEO Tamara Lundgren feels the company has moved much further.With the advent of the circular economy, or the model of production and consumption, which aims to use and reuse materials as many times as possible, society has found itself at the center of a shift.That led to a rebrand under Lundgren, who now heads Radius Recycling, a name she says fits much better with where the company sees itself and the economy headed in a low-carbon, renewable energy future.

One of the first questions Tamara Lundgren often hears when she introduces herself as CEO of Schnitzer Steel is, “What kind of steel do you make?” Founded in 1906 by Russian immigrant Sam Schnitzer, the company began as a one-person scrap metal. metal recycler. More than 117 years later, a series of acquisitions and organic growth have made it one of the largest producers and exporters of recycled metal products in North America and a global leader in the collection, processing and sale of steel.And while yes, Lundgren told CNBC, the company makes steel — some of the lowest-carbon steel produced in the world, she noted — it's now the smallest part of its business.

"The Schnitzer Steel name doesn't really reflect our work anymore," said Lundgren, who joined the company in 2005 and was promoted to CEO in 2008. "We've finally gotten to the point where you introduce yourself by explaining what you do a little bit, but not a lot, it's probably time to rebrand."

Under Lundgren's leadership, the company is now right in the middle of the growing circular economy, operating metal recycling facilities, auto dismantling and retail stores that sell used auto parts, and third-party recycling services for manufacturers, industry and retailers.

"In today's environment, the importance of recycling and the importance of metal recycling has reached a level that didn't exist 10 years ago," Lundgren said. "With the transition to low-carbon technologies like electric vehicles, solar, wind and the like, all these technologies require more metal than the technologies they replace."

An example of recycling issues in the climate transition is a wind turbine that is recyclable, from the steel tower to the composite blades, typically 170 feet long, but most end up in landfill, a total waste that reaches cumulative mass. 2.2 million metric tons by 2050, according to a 2021 study.As this energy shift was happening in the broader economy, there were also conversations within the company and at the board level about a potential new brand, Lundgren said.

This happened in January when Lundgren was in Davos. Schnitzer Steel has been named "the most sustainable company in the world" by Corporate Knights magazine, but Lundgren said most of the headlines she's seen have focused on the fact that it's a steel company.

"I'm glad we got this attention, but basically what drove it was our recycling business," Lundgren said. This quickly prompted a call to her communications team to bounce the idea of ​​exploring a new brand, which then led to more discussions with brainstorming experts and then formal discussions with the board and internal feedback team.

Several ideas have been generated, including some custom names. But Lundgren said the name Radius Recycling resonated with everyone he mentioned it to, which started the process. "The catalyst had a name that made people understand what you did," she said.

The process has been closely guarded because it is a public company, so Lundgren said there are employees and stakeholders who will know about the name change when it is publicly announced on July 26. But she was sure it would resonate across all parties.

In fact, she said she expected it to particularly resonate with the ESG investor community. Although the company already has support from this sector of investors, Lundgren said the new name "opens the door more easily to people who might otherwise put us in a category that wasn't in their interest."

Could it also bring negative feedback because of those ESG links? Lundgren said she doesn't believe that because the company was "about sustainability before sustainability was a word. We're about recycling and there's no fluff."

Implementing the change at Radius Recycling will take time, Lundgren noted. While the company doesn't necessarily have product on the shelf or packaging that needs reworking, it does have a lot of heavy machinery that will be repainted or rebranded when that equipment rolls over, she said. Most of the effort will go into the digital side of things, so it won't require the company to accelerate any capital spending on that. Its Nasdaq ticker symbol will change in September.

Reflecting on the process, Lundgren said one thing she would highlight for other companies in the midst of massive economic and market transformation is how much of it was focused on listening: listening to what people's first reactions to the company were, what questions they were asking . they asked, and where do stakeholders think the future of the company is headed.

"It was connecting all the dots and communicating," she said. "And for that to be successful, that communication has to continue."Part of that communication will be talking to fellow CEOs about services the company can offer to help reduce its carbon footprint and environmental impact, which Lundgren hopes will be easier when he hears the name of the company he leads.“I think it's great to be able to take an old economy company and an old economy industry and really put it at a point where we're a critical business and we're critical to the success of the circular economy and we're critical to that transition. to a low-carbon world," she said.

The 117-year-old steelmaker's commitment to sustainable recycling not only reshapes the way we deal with climate technology waste, but is also an inspiring example of how industries with a long history can adapt to modern environmental challenges. 

As we continue to navigate the complex landscape of climate change, partnerships between innovative companies and traditional leaders like this steelmaker will be critical to creating a greener and more sustainable future. With an emphasis on resource efficiency, material recovery and environmental damage reduction, the company is emerging as a key player in addressing the recycling challenge of climate technology, paving the way for a brighter and cleaner tomorrow.