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Investing in the Circular Economy and Recycling: Company Spotlight Sims (ASX:SGM)

Updated: Dec 12, 2022

We’re going ‘round the Bloom portfolio and have lined up a webinar with Sims Ltd (ASX: SGM).

We know you’re particular about where you invest your money, and so are we. Bloom is bridging the gap between investors and businesses, offering investors to connect directly with companies we invest in via the Bloom Climate Impact Fund.

Our next webinar will bring investors face to face with Sim Ltd, a leader in the circular economy. But who is Sims? And what do they do in the circular economy?

Who is Sims?

Sims Ltd was founded in 1917 and provided world-leading services in recycling and circular solutions for technology. Currently, Sims is expanding into municipal recycling and renewable energy. Their business divisions include Sims Lifecycle Services, Sims Metal, Sims Municipal Recycling, and Sims Renewal.

Sims is a global recycling giant listed on the ASX and a major player in the circular economy through its projects that reuse IT assets and cloud infrastructure, recycle copper and aluminium, and curbside recycling.

In 2021, Sims experienced a 20.5% rise in sales revenue, earning a total of $5,916.3M, and an underlying EBIT of $386.6M. Their highest selling product, ferrous metal, brought in $4,288.9M in 2021.

What is the circular economy?

The circular economy is a process that rethinks how we source, consume and discard materials.

Traditionally, humans developed a linear production method in which we source, produce, and then dispose of products with limited-to-no consideration of replenishing or disposing of the materials. Nature, however, has a circular production method where flora feeds fauna, and fauna breaks down to nourish flora (if you’re thinking of the Lion King, you’re on the right track).

The circular economy adopts this natural method by considering our waste as the source of new production. By reusing and recycling materials that are already in circulation, landfill and virgin materials are reduced. This method has the potential to reduce 45% of global emissions, and the economic opportunity in Australia across the built environment, mobility, community and industrial sectors is estimated to be $1,860 Billion over 20 years to 2040 (ACE Hub).

Why do we like Sims?

Sims is committed to becoming carbon neutral by 2042 and aims to reach net zero by 2050. With 104 years of recycling experience, Sims has diverted a large amount of waste from landfills and, in 2021 alone, repurposed 2.1M cloud infrastructure units and recycled 8.6M tonnes of secondary metals. Sims annually processed and marketed 660,000 tonnes of municipal curbside material since their expansion into curbside recycling in 2002 and has reduced more than 45M tonnes of carbon emissions in the last 25 years.

Their work has helped businesses become more resource-efficient, reduced the use of natural resources, contributed to climate change mitigation, and reduced waste that was once destined for landfills. It’s these actions that make Sims a world leader in the circular economy.

Want to know more?

A circular production line is by no means a new invention, but with the drive toward a sustainable future, it’s definitely a powerful tool. Sims has established itself as a leader in the circular economy, has been recycling metals since 1917, and is now ready to answer your questions! Watch our Bloom Q&A spotlight webinar recording and learn more about investing in recycling.

And if you’re ready to dive into the world of impact investing, download the Bloom Impact Investing App and get your green investment journey started!

Please note:

This blog post has been prepared by Bloom Impact Investing to provide readers with general information only. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. We do not express any view about the accuracy or completeness of the information that is not prepared by us and no liability is accepted for any errors it may contain. The information contained in this blog is of a general nature only, does not take into account your objectives, financial situation, or needs, and is not to be taken into account as containing any personal investment advice or recommendation. No warranty is provided as to the accuracy, reliability, and completeness of the information in this publication and you rely on this information at your own risk. Any past performance information in the publication is not a reliable indicator of future performance.

The information in this post is prepared by Bloom Impact Investment Services Pty Ltd (ACN 651 965 098 AR 001294778), who is an authorised representative of Cache Investment Management Pty Ltd (ACN 624 306 430 AFSL 514 360) (Cache). Any financial products described in this post will be issued by Melbourne Securities Corporation Limited (ACN 160 326 545, AFSL 428 289), as disclosed in the relevant product disclosure statement. All information is general information only and does not take into account your personal circumstances, financial situation or needs. Before making a financial decision, you should read the relevant Product Disclosure Statement and Target Market Determination and consider whether the product is right for you and whether you should obtain advice from a professional financial adviser.


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