Second time’s the charm: How social sector reuse organisations create value from waste

If you’ve heard of the circular economy (striving for zero waste), you’re likely familiar with policy initiatives to boost recycling, innovations in sharing platforms or new product design solutions.

But one of the sector’s most vital players is often overlooked – social sector reuse organisations.

These groups do more than keep goods out of landfill; they breathe new life into unwanted items while generating social and economic benefits.

By turning discarded goods into valuable resources, they play a crucial role in making the circular economy a reality.

A report, Measuring the Benefits of Reuse in the Circular Economy, published by Charitable Reuse Australia and Monash University, uncovers the social, environmental and economic impacts of social sector reuse organisations in Australia.

It highlights how these organisations – ranging from well-known charitable retailers such as Vinnies and Salvos stores to social enterprises such as Green Collect and Good Sammy – recirculate goods, diverting them from landfill while fostering local economies and community wellbeing.

The real opportunities of op shops

Many Australians recognise social reuse organisations through their (often historic) network of op shops and tip shops, which provide ethical outlets for unwanted goods, as well as affordable second-hand items for customers.

But there are other types of reuse organisations that have emerged more recently.

Organisations such as Green Collect focus on repurposing and recovering office equipment, while Thread Together redistributes excess clothing to people in need. These groups provide essential services by extending the life of products, creating jobs and supporting vulnerable communities.

The report categorises these organisations into three main types:

• Charitable reuse retailers: Generally large, well-established charity organisations that operate second-hand retail arms to generate revenue for social programs.

• Waste to wages enterprises: Social enterprises that leverage the work of recovering and reselling goods to employ and train jobseekers.

• Community reuse intermediaries: Groups that focus on redistributing goods from suppliers directly to targeted customers, rather than selling them through retail outlets.

Economic and social value of reuse

The environmental benefits of reuse are clear – extending product lifespans reduces demand for new goods (and landfill costs) and keeps materials in circulation. But this report also brings to light the social and economic impacts, which have often been underrepresented in policy discussions.

Reuse organisations provide employment and training opportunities, often focusing on people facing barriers to traditional employment.

Waste to wages enterprises, for example, ensure that 25-85% of job opportunities go to individuals who have experienced long-term unemployment or social disadvantage.

Many organisations also run skills development programs, offering pathways to permanent employment in the circular economy.

Beyond employment, reuse organisations generate significant economic benefits by supporting local businesses through resale and remanufacturing, and strengthening community resilience.

They also foster local circular economies, where recovered materials are transformed into valuable products through upcycling and repair initiatives.

Barriers and opportunities

Despite their contributions, the sector faces key challenges that limit its ability to scale up reuse initiatives:

• Lack of policy recognition: Many reuse organisations are still viewed primarily as waste managers rather than key players in resource recovery and circular economy development.

• Limited funding and investment: Costs related to operational facilities, wages and infrastructure make it difficult for these organisations to expand, particularly when many (namely charitable reuse retailers) charge minimal revenues for waste management.

• Need for better measurement frameworks: Standardised metrics that focus on reuse volumes, rather than their social benefits, limit a full appreciation of the sector’s impact. This is currently being addressed by research conducted by NSW’s Environmental Protection Agency (EPA). Early findings show reuse organisations in the state have saved communities $432 million, easing the cost-of-living crisis.

• Need for urban planning fit for circularity: Regulatory hurdles and zoning mismatches that make it difficult for reuse organisations to locate in the best places to undertake work that catalyses circular local economic activity.

To address these challenges, the report provides a set of recommendations:

• Government contracts to expand reuse: Public sector procurement policies should prioritise reused and repaired goods, creating stable markets for reuse organisations and boosting local economic activities.

• Support for repair and upcycling: Incentives such as dedicated repair spaces, progressing ‘right-to-repair’ legislative reforms and tax offsets for reuse activities could help mainstream these practices.

• Circular economy hubs: Co-locating reuse organisations within circular economy precincts, with suitable zoning and regulations, could foster innovation and collaboration across sectors.

• Consumer awareness and policy shifts: A national certification scheme for second-hand goods and clearer product labelling could help reposition reused products as a first-choice option rather than a last resort.

Making second-hand the first choice

The research underscores the untapped potential of reuse in shaping a truly circular economy. While recycling has long dominated waste policy, reuse provides a more sustainable and socially beneficial alternative.

If we’re serious about building a circular economy, reuse must be front and centre. Supporting and expanding the role of social sector reuse organisations isn’t just an environmental imperative, it’s a strategy for social and economic transformation.

For further reading, the full report, Measuring the Benefits of Reuse in the Circular Economy, provides a deeper insight into the sector and a clear blueprint for action.