The journey toward a circular economy

29 July 2026

As one of Australia's largest electricity distribution networks, Essential Energy uses a significant volume of materials and assets to build, maintain and operate the network that powers regional, rural and remote communities.

From timber poles and transformers to vehicles, hard hats and scrap metal, thousands of items move through our depots, offices and worksites every day.

We recognised that the way these materials are managed has long-term implications for both the environment and for our communities. Rather than viewing assets simply as waste at the end of their life, we saw an opportunity to rethink our approach and find ways to keep valuable resources in use for longer.

Sophie Mackinnon, our Head of Sustainability, explains circular economy principles are changing the way Essential Energy thinks about waste.

"We're moving from a traditional disposal mindset to a more circular economy approach where materials are viewed as resources that can be reused, repurposed or recycled," Sophie says.

"Across an organisation of our size, even small improvements can make a meaningful difference. That's particularly true for some of our largest waste streams, where finding new opportunities to reuse and recycle materials can have a significant impact over time."

Across the business, materials that may once have been seen as waste are increasingly being reused, repurposed or recycled through partnerships with specialist recyclers and community organisations.

One of the most significant examples is timber power poles. With more than 1.4 million poles across the network, they’re also one of the largest waste steams for the organisation. The good news is that many timber poles can have a second life.

Some poles will find a new purpose such as for fencing, equestrian facilities and other community projects. Some are also transformed into new timber products, like hardwood floors and architectural timber through specialist recycling processes, like those provided by Australian Architectural Hardwoods in Kempsey.

Circular economy thinking is also finding new uses for everyday operational items. Scrap metal, waste oil, fleet assets, electronic equipment and even hard hats are now being considered through a different lens.

Retired hard hats, for example, are collected and repurposed through specialist recycling partners rather than being sent to landfill. Through our partnership with Back‑Up, old hard hats are transformed into ergonomic handles for tools such as shovels, spades and brooms, giving the materials a practical second life.

In 2025, more than half of Essential Energy's waste was diverted from landfill, demonstrating the progress being made as circular economy principles become increasingly embedded across the organisation.

While we’re proud of the progress so far, the journey is far from over.

For Sophie, creating a circular economy is about more than recycling.

"It's about looking at the full life of our assets, not just what happens at the end. We're finding opportunities to reuse, repurpose or recycle everyday materials and improve the systems that help keep resources in use for longer,” Sophie says.

Not every material can be reused or recycled, but every improvement helps.

As Essential Energy continues its circular economy journey, we're challenging traditional ideas of waste and uncovering new opportunities to keep valuable resources in circulation. From retired power poles finding new life in regional communities to hard hats transformed into everyday tools, these initiatives demonstrate how small changes can deliver meaningful environmental, community and economic benefits.