Digitalisation is the key enabler for circular business opportunities

Digitalisation

Digitalisation in the waste and resources sector brings many opportunities for cost efficiencies and unlocks many circular business opportunities, writes Dr. Rembrandt Koppelaar, Head of Circular Economy at EcoWise.

Waste material passports are a critical technology that build on the upcoming UK mandatory digital waste tracking and product information systems.

The UK Government has finally decided to fully overhaul its outdated waste shipment data system in 2026.

Full digitalisation is coming where each waste received by October 2026 will be reportable with automated IT technology to the government from an operator software system, followed by each waste sent from July 2027 onwards.

Immediate benefits of this digitalisation come from cost-efficiencies through direct digital reporting, avoiding costly manual form management and manual online entry of information.

Waste shipment data from next year onwards only needs to be drawn up once in a waste management IT system that is integrated with the government’s portal.

Beyond reporting benefits, a digital format for waste shipments brings significant added value for businesses when it is linked to several new material data points, integrates site-to-site traceability, and automates visibility of waste to off-takers and their systems using standardised data formats.

This is a key enabler to visualise both quantities and qualities of wastes to unlock business opportunities for circularity.

EcoWise has, to this end, developed and tested a software solution over the past two years to make the invisible visible – waste material passport IT technology.

The foundation is a digital information portal unique to a waste shipment, linked to a QR code attached to a pallet or shipment container, labelling and documentation.

A site operator can scan the QR code and update the passport with traceability information, similar to a postal package, including photos and shipment data.

The system also allows you to digitally log waste code information and more detailed materials data in the passport. The data can be aggregated and provided to any other IT system using IT automation, including, once set up, the UK Government digital reporting portal.

Cost savings and value-added benefits opportunities

Digital waste material passport IT technology brings many new opportunities beyond reporting.

Shipment verification – A verification process to evaluate shipment data between the sending and receiving party, with grade information and an AI check to automate the process of validating that what is sent is the same as what is received. For example, for different paper, plastic or electric battery grades.

Reclaim offerings – High-value items from sorted waste can be automatically offered for purchasing via a network of refurbishment and resale marketplaces. To do this, the data in the waste material passport is made visible as an offering/sales entry to reclaim distributors and/or 3rd party marketplaces. For example, construction waste from roof renovation efforts regularly includes wooden or steel ceiling beams with significant value.

Materials information – Additional materials data needed for processors can be added to the passport for automated transfer to their IT systems. This provides more precise control efforts in recycling, waste incineration, or the management of hazardous wastes. The information can also be utilised for legal compliance management.

Cross-border customs and shipments – Digitalisation for UK shipments can also be extended for cross-border shipments into other geographies. Data points from customs documents, such as a bill of laden, can be integrated into the waste material passports and made digitally accessible. Enabling international operators to benefit from further cost efficiencies, including by integrating automated reporting to the EU DIWASS system for intra-EU waste shipments notifications that will be set up in 2026.

ESG reporting – The digital data chain of shipments and processing data can be utilised to give reporting information on recycled and reuse tonnages for manufacturers from which wastes are collected, that need obtaining waste recycling rate data for ESG reporting purposes. Based on the traceability data up to the processor, where the waste is recycled using the waste material passports.

Linking product to waste to product data

The shift to digitalise waste shipment data brings a foundation for the long-term advance of reuse and recycling loops by automated linking of product and waste data.

The UK government is already making moves to this end in the announced 2025 construction products reform green paper, which includes the proposed introduction of a construction products data library and a Digital Product Passport for placing construction products on the UK market.

The initial goal? Enable transparency of construction products data and their traceability up to the construction site into digital building logbooks for legal purposes.

Major circularity benefits can also be unlocked. Once these digital systems are legislated and rolled out, demolition works can be converted into deconstruction works, where original product data can be directly linked to extracted building components to understand their origin, qualities and material composition to evaluate the best valuable way to process materials.

Large UK construction industry firms are already moving ahead in lieu of the government’s proposed reforms. In May, they set up the Manufacturer Information Hub, to build the interoperable IT system to standardise the management and sharing of construction products information for all construction products companies.

The upcoming digitalisation shift at both product and waste ends will, over time, lead to full visibility in the circular value chain, enabling the management of recycled content as well as reused content data based on traceability at each point of processing, from products to waste to products.

The post Digitalisation is the key enabler for circular business opportunities appeared first on Circular Online.

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