Circularity

Eliminating waste and pollution, keeping products and materials in use and regenerating natural systems.

Material Topic Information

Why it matters

Circularity supports long-term economic and environmental benefits by reducing dependency on finite resources, lowering emissions, and creating value through resource efficiency and recovery. Achieving these benefits depends on effective resource management, collaboration, and supply chain traceability.

Ambition

Fortescue values resources throughout our supply chain, striving towards a circular approach to our sourcing, use and end of life management of materials. We aim to treat waste as a resource, focusing on prevention, reduction, recycling, and reuse, while minimising reliance on virgin materials in manufacturing.

Contributing to SDG's

Salient Human Rights Issues

Materiality

Circularity at Fortescue

Circularity is a part of Fortescue’s approach to environmental stewardship and resource efficiency. It focuses on minimising waste, conserving resources, and extending the lifecycle of materials through recycling, reuse, and innovative design. This approach is critical for aligning our operations with global sustainability goals and reducing our overall environmental footprint.

FY25 Highlights

Tracking and setting performance metrics for waste is a crucial step in addressing circularity risks and opportunities. By reducing landfill waste, improving resource recovery, and optimising recycling, we achieve immediate environmental and cost benefits while laying the groundwork for broader circular economy strategies. These efforts not only divert valuable materials from disposal but align our waste management practices with longer-term sustainability objectives, enhancing operational efficiency, and capturing associated cost savings.

In FY25, we continued to enhance the transparency of our waste data by improving data collection processes and expanding our consideration of diverse diversion methods beyond recycling, such as reuse, to strengthen the measurement and reporting of our waste performance.

The volume of collected waste data increased significantly compared to FY24, primarily due to two factors regarding our Pilbara sites. Firstly, the recovery of legacy scrap steel stockpiles resulted in substantial increases in volumes collected, as we intensified the processing of accumulated scrap steel across our sites and rail operations. Secondly, we established new contracts with our hydrocarbon waste vendors, which led to significantly more site pickups and processing of filter bins.

During FY25, 97,300t of total non-mineral waste was generated across our facilities, with no hazardous waste being disposed of on site. The year on year site specific performance objective for a minimum of 80 per cent of material being recycled at our Pilbara sites (excluding tyres and concrete), as set in FY24, was not achieved in FY25 (79.0 per cent).

Looking forward, Fortescue has revised our target to consider all waste diverted, encompassing reuse and other methods of diversion in addition to recycling. Recognising that methods such as reuse contribute significantly to circularity, waste performance and diversion from landfill, we have included this revised metric in our FY25 reporting to provide a more a comprehensive view of our waste management efforts. In FY25, we diverted 80.3 per cent of material at our Pilbara sites (excluding tyres and concrete).

97,299.7

Total non-mineral waste generated across our facilities during FY25, with no hazardous waste being disposed of on site.

80.3%

Of material diverted at our Pilbara sites (excluding tyres and concrete)

FY25 Performance

A full breakdown of our FY25 Circularity data is provided in our FY25 ESG Databook located in our Document Library.

Read our FY25 ESG Databook

Impacts, dependencies, risks and opportunities

Fortescue’s circularity efforts reduce waste, enhance resource efficiency, and drive innovation. By addressing supply chain dependencies, mitigating regulatory risks, and leveraging opportunities, we create environmental, operational, and community benefits while minimising negative impacts.

Waste management and circularity efforts support improved resource efficiency and a reduced demand for raw materials. By limiting raw material use and maintaining them at their highest value, circular economy practices help to reduce environmental footprint, while supporting nature restoration and regeneration by decreasing pollution and reliance on raw materials.

Negative impacts from insufficient waste management practices may include environmental pollution from the disposal of streams such as hydrocarbons and hazardous chemicals. Waste processing and transportation can increase energy consumption and greenhouse gas emissions, including during recycling. Improper handling and storage of hazardous materials may lead to local environmental degradation, including soil contamination.

Circularity depends on traceable supply chains, effective waste systems, strong partnerships, and efficient technologies for scalable resource recovery and impact.
The ability to unlock the co-benefits of circularity depends on the traceability of our supply chains, our capacity to manage waste effectively, and the maturity of technologies (such as recycling systems) that enable resource management and recovery.

We depend on strong relationships with suppliers, third-party waste vendors, and local communities to deliver on our circularity objectives. Strategic supplier engagement, combined with alignment to government regulations and waste standards, enables responsible material sourcing and disposal. Partnering with local communities is essential to ensure that our waste management practices are contextually appropriate and respectful.

We rely on digital technologies to monitor waste generation, incidents, collection, and recycling performance. Advancing circularity also depends on access to innovative solutions and the maturity of recycling infrastructure and technologies, both of which influence our ability to reduce waste and recover materials at scale. Our research and development team is involved in several circularity projects, including those focused on sustainably sourced renewable energy technologies and recovering value from mining byproducts.

Our circularity and waste management practices are subject to a range of risks across regulatory, financial, environmental, and operational dimensions.

Regulatory and compliance risk

Circular economy practices, in sectors including mining, are subject to a complex and evolving regulatory landscape. Implementing circular economy practices offers significant environmental benefits, such as reducing waste and conserving resources. However, they often face regulatory challenges that can impede adoption. For instance, mining waste is frequently classified as hazardous due to concerns about potential contamination and environmental impact, creating barriers to reuse and recycling. Evolving environmental regulations may introduce operational constraints, such as limitations on landfill use, increasing the risk of non-compliance, financial penalties, and higher waste management costs.

Operational and safety risk

The disposal of waste, particularly in landfills, poses environmental risks such as groundwater contamination if not properly managed. Additionally, insufficient planning for product end-of-life, such as storage and decommissioning of our decarbonisation equipment, can pose both environmental and safety hazards. Disruptions caused by inadequate waste infrastructure, especially during extreme weather events, can impact site performance and continuity.

We see circularity as an environmental, economic and business opportunity. By embedding circular economy principles, we can unlock measurable benefits for the business, the economy, and society, creating long-term value across multiple dimensions. It enhances resource efficiency through material reuse and recycling, reduces waste, and lowers costs. By minimising environmental impact, circularity fosters innovation and creates economic opportunities.

Initially prioritising waste management, such as through policies that reduce waste to landfill, provides immediate opportunities to reduce disposal costs and lower environmental impact. By extending to include circularity principles into these practices, waste management has the opportunity to become more than just a compliance or environmental responsibility; it becomes a lever for improved operational efficiency that contributes to the development of circular ecosystems.

Circularity Strategy

Fortescue’s approach to circularity focuses on minimising waste generation, maximising resource use, and integrating sustainability into every stage of the material lifecycle. This approach is supported by our Environment Policy and Waste Management Standard, which provides a framework for responsible waste handling and resource efficiency. Key components of the strategy include:

Prevention and Reduction: Reducing waste at the source by optimising material use and eliminating unnecessary packaging.
Reuse and Recycling: Extending the lifecycle of materials through innovative recycling programs and partnerships.
Engagement and Awareness: Educating employees and stakeholders about the importance of circularity and promoting sustainable practices.

A Closer Look

Managing Circularity

We manage our waste at site level across our operations. Waste is generated primarily from our own activities, with additional waste generated from suppliers through transport and packaging. Site-specific waste reports are developed by our waste management contractors to quantify the waste produced and identify opportunities to improve material use efficiency. We mitigate impacts by complying with all regulatory requirements as the absolute minimum and implement sustainable, adaptive waste management practices across all our sites.

The non-mineral waste produced across our operational sites is classified as either non-hazardous or hazardous.

Non-hazardous waste generated at our sites includes steel, wood, rubber, food, packaging and office waste. Reuse and recycling mechanisms have been established for materials including scrap steel, HDPE pipe and rubber.
Hazardous waste, as classified under the Basel Convention, includes hydrocarbons, chemicals, waste oil and batteries. This waste is removed from our sites for recycling and disposal by licensed, third-party waste management companies.

Key waste streams from our corporate offices include general waste, commingled recycling, paper/cardboard, organics, sanitary waste, e-waste, and sewerage waste.

We seek cost-effective circularity solutions, aligned with our Value of Frugality, driven by both corporate and discipline-specific efforts from our Sustainability team to our Sustainable Supply Chain team.

We aim to optimise inventory levels to reduce waste and leverage technology to better understand our supply chains.

Key elements of our approach

Our approach to circularity spans our direct operations on-site, as well as material upstream and downstream value chain activities, aligning with our broader sustainability and resource efficiency objectives. This includes on-site waste and material management, working with suppliers to improve upstream material sourcing and logistics, and downstream efforts to support end-of-life reuse and secondary material markets.

Governance

By embedding circular economy principles into our operations, we aim to drive innovation, reduce reliance on raw materials, and maximise the value of resources across their lifecycle. This commitment aligns with the UN Global Compact:

Principle 7: support a precautionary approach to environmental challenges
Principle 8: undertake initiatives to promote greater environmental responsibility
Principle 9: encourage the development and diffusion of environmentally friendly technologies.

The CEO Fortescue Metals and Operations is responsible for managing operational waste-related matters within the Metals business, supported by Technical Services, Environment and other operational teams.

In FY25 the CEO Fortescue Energy, together with the Global Projects Director maintained oversight of Growth and Energy waste-related activities , supported by the project operations and HSE teams in providing information regarding waste management practices. From FY26 this responsibility will be with the CEO Global Energy and Growth.

The corporate environment and approvals team also support waste management practices across the business with respect to approvals, environment and communities.

Policies and Standards

Our Environment Policy underscores our commitment to environmental stewardship and accountability for our impacts, supported by initiatives to reduce waste, conserve resources, and align with our Waste Management Standard.

Our commitments include:

Conserving resources: Efficiently using water, energy and raw materials to maximise the value gained from their use.
Reducing emissions and waste: Prioritising the procurement of sustainable materials and reducing waste generation through prevention, reduction, reuse and recycling strategies.

Our Environment Policy can be found in our Document Library.

Our Waste Management Standard provides a business wide framework for managing waste responsibly. Implementation of this Standard ensures that our waste management objectives can be met consistently, while allowing flexibility for the Standard to be applied within a local and/or regional context in accordance with project phases.

Waste management contractors must meet our contractual requirements for waste handling and recycling. Those managing hazardous chemicals are selected based on compliance with ISO and regulatory standards. Waste contractors are audited and must comply with environmental standards.

We are committed to the following standards of waste management:

Identify all wastes generated, capturing and managing waste classification data for all waste streams to inform project design, operational and closure activities, and future approvals. This includes identifying and engaging with relevant stakeholders to understand management requirements and address impacts.
Mitigate the impacts and risks of our activities that generate waste to minimise adverse environmental impacts and prevent pollution by implementing effective risk management practices to identify, assess and manage waste risks in consultation with relevant stakeholders. This includes ensuring that appropriate facilities, handling practices, transport, treatment, and disposal methods are identified and available for the storage and segregation of generated waste types.
Responsible waste management to maximise resource sustainability including identifying, managing, investigating and reporting waste related incidents.
Transparent reporting on waste performance by defining and communicating clear commitments for responsible waste management that reflect stakeholder expectations.

Management systems

Monitoring responsibilities are documented in our Business Management System (BMS) as actions. Actions must be completed by the date set by management. If actions are not completed, the action is escalated further and management notified. Biannual to quarterly quality assurance and control is applied to check that monitoring is completed and results uploaded to Fortescue's environmental data system (EnviroSys).

We adhere to guidelines for the management of hazardous materials and non-mineral waste, ensuring that treatment, storage, and disposal facilities comply with legislative obligations. We also work with third-party waste vendors to ensure that waste is managed in line with environmental performance standards. Robust environmental management systems, regular risk assessments, and ongoing monitoring of regulatory changes are key to reducing the risk of non-compliance.

To address regulatory barriers, we are actively collaborating with industry bodies and contributing to government initiatives that emphasise the need for regulatory reforms to facilitate the safe reuse of mining waste.

As part of our monitoring for supply chain-related risks, we quantify our Scope 3 emissions for our company-wide goal to achieve net zero by 2040. This approach supports the sustainable management of waste and helps maintain our social licence to operate.

Processes and procedures

We mitigate the potential negative impacts by constantly reviewing and improving our waste segregation practices, for example, with clear signage and bins, and by using certified waste vendors for hazardous materials. We require that our waste contractors follow strict protocol for the safe disposal and recycling of both hazardous and non-hazardous waste streams, including general waste, hydrocarbons, and chemicals. Additionally, staff education and awareness campaigns help reduce overall operational waste generation and support continuous improvement and innovation.

To mitigate potential negative impacts on waste and circularity we engage with waste contractors to improve waste separation practices and participate in recycling programs such as Containers for Change. Our approach includes installing infrastructure and signage for waste segregation, regular reporting requirements from our waste contractors, and the sharing of materials and inventory across sites. We also have hydrocarbon spill response protocols and training for appropriate staff on site. In our offices, we promote recycling, and introduce on-site recycling systems. These measures improve our waste management practices and contribute to our recycling rates, reducing environmental impact.

As for internal staff engagement and education, our Commercial Leasing team actively educates our staff on correct waste disposal via communications plans, facilitated site visits, office campaigns and reporting. Our Sustainable Supply Chain team has also launched a training module for circularity for all of our Contracts and Procurement team members to complete.

Fortescue’s developing approach to product stewardship underscores our commitment to sustainability and minimising environmental impact across the lifecycle of the products we manufacture, procure and use. Part of Fortescue’s approach to product stewardship is a focus on the opportunities to reduce environmental impact by seeking opportunities to embed circularity principles into design and sourcing activities. Fortescue endeavours to include these practices with the aim to reduce product emissions, enhance resource efficiency, and enable long-term sustainability. As our supply chains mature, our ambition is to provide customers with digital product passports that offer transparency on the impact of Fortescue products.

Our efforts to define product stewardship for Fortescue are driven by collaboration with both external and internal stakeholders. Externally, we work with suppliers and strategic partners to improve traceability and conduct lifecycle assessments (LCAs), prioritising high-risk and high-impact areas where focused efforts yield meaningful change. Internally, our Contracts and Procurement team integrates circularity criteria into sourcing decisions, enabling alignment with sustainability goals. By fostering capability-building initiatives, such as training modules and workshops, we empower our teams to embed sustainability into the procurement process.

Decarbonisation remains central to our product stewardship approach. For our magnetite and hematite products, we are working to address emissions across Scopes 1, 2, and 3, with a focus on green steel innovation and collaboration with the broader steelmaking industry. Additionally, as we expand into manufacturing technologies like low-emission battery systems and mining equipment, we are committed to establishing transparent and responsible value chains that align with our long-term environmental and social objectives. Through these efforts, Fortescue is creating products that not only reduce environmental impact, while delivering value for stakeholders and driving a more sustainable future.

Managing Performance

At our sites, we have a year-on year recycling performance indicator for non-mineral waste, excluding tyres and concrete, since 2021. At our corporate headquarters, we have established monthly recycling objectives and engage employees through office-wide meetings and frequent posts on internal channels to drive continuous improvement in recycling efforts. To evaluate our performance against these indicators, we collect data from the waste vendors at varying intervals between reporting periods (daily, monthly, quarterly), via invoices, site surveys and weighbridges, to assess our progress against these indicators.

Compliance

Compliance with all relevant legislation and obligations, including those that govern waste management, is the absolute minimum standard to which we operate.

Metals operations are currently located only in Western Australia. Fortescue therefore complies to Western Australian and Australian Commonwealth legislation and regulation regarding waste, including the Environmental Protection Act 1986 (WA). We also apply State guidance and policy, such as use of operating strategies in waste and landfill licensing processes.

We ensure compliance with the relevant legislation and regulations via several processes, including:

Approvals and permitting with ongoing reporting and audits.
Our Waste Management Standard and Environment Policy.
Waste management plans and operating strategies implemented at all operational sites.
Compliance with the Basel Convention (2020) on the control of transboundary movements and disposal of non-mineral hazardous wastes and plastics.
Incident reports through Fortescue Business Management System, with incident review to identify why the incident occurred, how to reduce the likelihood of reoccurrence, and implementing mitigation if required. Depending on the severity and requirements, the incident may be reported to the relevant Regulating Government Agency.

Reporting

Waste reporting is a key component of Fortescue's waste governance practices. Statutory and voluntary reporting of waste data is regularly undertaken to meet our obligations and commitments. We disclose our waste produced, diverted and in accordance with 'GRI 306: Waste 2020’ for active facilities within our operational control.

Our Actions

Our waste management activities have actual and potential impacts on the economy, environment, and people. Negative impacts may include pollution, resource depletion, and energy consumption linked to waste disposal and recycling. Risks relate to the handling of hazardous materials such as fuels and chemicals, and contamination of recyclables due to incorrect sorting. These circularity and waste impacts mostly result from our own operations, including mining, office activities, and waste streams such as timber, rubber, hydrocarbons, and food waste.

Additional waste is generated through our supply chain, particularly from packaging and transport. We are also connected to these impacts through our business relationships with third-party contractors and waste vendors, who manage the downstream processing of our waste and materials. However, improved waste separation systems, circular approaches to product design and manufacturing, and higher recycling rates have led to more efficient resource use, reduced waste to landfill, and uncovered new cost-saving opportunities.

Operations
Additional Initiatives

Our office move

In FY25, Fortescue successfully relocated its headquarters within Perth’s CBD, consolidating office spaces and completing fit-outs across 23 floors in 10 buildings. By redeploying, reusing and recycling as much inventory as possible, we saved approximately $4.7million and 5,000 items from disposal.

Case Study: Containers for Change

We continued our contributions to the Containers for Change in WA program in FY25, diverting more than 850,000 containers from landfill. This initiative has not only reduced waste but also supported local communities, with the collected funds being directed to Lifeline WA, Ronald McDonald House Charities WA, the Salvation Army and SAFE Hedland.

Lessons Learned

Lessons learned from FY25:

Partnerships with waste management vendors and landlords are central to managing waste and impacts.
Improving waste segregation reduces contamination and improves recycling efficiency, leading to more economic opportunities for material recovery.
Regular data collection (via weighbridges, BMS) help us to refine waste tracking and optimise waste management strategies at all sites. Regular site surveys and using weighbridge logs at sites allow more accurate tracking, helping to refine waste disposal practices and reporting methods.
Regular employee engagement via workshops and training sessions on waste management practices enhance awareness and participation, resulting in improved waste segregation and recycling rates across sites and offices.
Successful PPE and textile upcycling programs with our third party demonstrate the potential for upcycling and contributed to workforce engagement.

Looking forward into FY26, we seek to:

Develop our global circularity strategy for reducing emissions and waste in our value chain.
Continue to improve our data accuracy by seeking more detailed waste data, particularly in areas with complex waste streams.
Further stakeholder engagement, including targeted internal engagement to improve recycling participation, and deeper collaboration with vendors to refine waste diversion methods.
Integrate emerging tools and resources into our practices, such as the ICMM Tools for Circularity, where suitable.
Continue to develop our initial Product Stewardship Framework.

Additional Resources

Digital Library

Date
Title
Category
8 Apr 2025
Environment Policy 2025
Download document(0.35 kb)

Circularity

Material Topic Information

Why it matters

Ambition

Contributing to SDG's

Salient Human Rights Issues

Materiality

Circularity at Fortescue

FY25 Highlights

In FY25, we continued to enhance the transparency of our waste data by improving data collection processes and expanding our consideration of diverse diversion methods beyond recycling, such as reuse, to strengthen the measurement and reporting of our waste performance.

97,299.7

80.3%

FY25 Performance

Impacts, dependencies, risks and opportunities

Impacts

Dependencies

Risks

Opportunities

Circularity Strategy

A Closer Look

Managing Circularity

The non-mineral waste produced across our operational sites is classified as either non-hazardous or hazardous.

Non-hazardous waste generated at our sites includes steel, wood, rubber, food, packaging and office waste. Reuse and recycling mechanisms have been established for materials including scrap steel, HDPE pipe and rubber.

Hazardous waste, as classified under the Basel Convention, includes hydrocarbons, chemicals, waste oil and batteries. This waste is removed from our sites for recycling and disposal by licensed, third-party waste management companies.

Key waste streams from our corporate offices include general waste, commingled recycling, paper/cardboard, organics, sanitary waste, e-waste, and sewerage waste.

We seek cost-effective circularity solutions, aligned with our Value of Frugality, driven by both corporate and discipline-specific efforts from our Sustainability team to our Sustainable Supply Chain team.

We aim to optimise inventory levels to reduce waste and leverage technology to better understand our supply chains.

Key elements of our approach

Governance

By embedding circular economy principles into our operations, we aim to drive innovation, reduce reliance on raw materials, and maximise the value of resources across their lifecycle. This commitment aligns with the UN Global Compact:

Principle 7: support a precautionary approach to environmental challenges

Principle 8: undertake initiatives to promote greater environmental responsibility

Principle 9: encourage the development and diffusion of environmentally friendly technologies.

The CEO Fortescue Metals and Operations is responsible for managing operational waste-related matters within the Metals business, supported by Technical Services, Environment and other operational teams.

The corporate environment and approvals team also support waste management practices across the business with respect to approvals, environment and communities.

Policies and Standards

Environment Policy

Waste Management Standard

Management systems

To address regulatory barriers, we are actively collaborating with industry bodies and contributing to government initiatives that emphasise the need for regulatory reforms to facilitate the safe reuse of mining waste.

As part of our monitoring for supply chain-related risks, we quantify our Scope 3 emissions for our company-wide goal to achieve net zero by 2040. This approach supports the sustainable management of waste and helps maintain our social licence to operate.

Processes and procedures

Operational waste management & staff engagement

Our products

Managing Performance

Compliance

Compliance with all relevant legislation and obligations, including those that govern waste management, is the absolute minimum standard to which we operate.

We ensure compliance with the relevant legislation and regulations via several processes, including:

Approvals and permitting with ongoing reporting and audits.

Our Waste Management Standard and Environment Policy.

Waste management plans and operating strategies implemented at all operational sites.

Compliance with the Basel Convention (2020) on the control of transboundary movements and disposal of non-mineral hazardous wastes and plastics.

Reporting

Our Actions

Operations

Additional Initiatives

Our office move

Case Study: Containers for Change

Lessons Learned

Lessons learned from FY25:

Partnerships with waste management vendors and landlords are central to managing waste and impacts.

Improving waste segregation reduces contamination and improves recycling efficiency, leading to more economic opportunities for material recovery.

Regular data collection (via weighbridges, BMS) help us to refine waste tracking and optimise waste management strategies at all sites. Regular site surveys and using weighbridge logs at sites allow more accurate tracking, helping to refine waste disposal practices and reporting methods.

Regular employee engagement via workshops and training sessions on waste management practices enhance awareness and participation, resulting in improved waste segregation and recycling rates across sites and offices.

Successful PPE and textile upcycling programs with our third party demonstrate the potential for upcycling and contributed to workforce engagement.

Looking forward into FY26, we seek to:

Develop our global circularity strategy for reducing emissions and waste in our value chain.

Continue to improve our data accuracy by seeking more detailed waste data, particularly in areas with complex waste streams.

Further stakeholder engagement, including targeted internal engagement to improve recycling participation, and deeper collaboration with vendors to refine waste diversion methods.

Integrate emerging tools and resources into our practices, such as the ICMM Tools for Circularity, where suitable.

Continue to develop our initial Product Stewardship Framework.

Additional Resources

Related Topics

Climate

Water

Product Stewardship

Sustainability Stories

Digital Library