OPINION: Something significant is happening at the intersection of recycling and energy, and many businesses are not prepared for it. What was once a traditional, operationally focused sector concerned primarily with waste diversion is steadily evolving into a more technologically enabled and commercially connected part of the resource economy. As governments, investors and consumers increase pressure for faster progress toward net zero, the recycling sector is being reshaped. It is no longer simply about managing waste; it is also about contributing to clean energy production, reducing carbon and supporting circular innovation. For leadership teams, the question is not whether this shift is happening, but whether they are equipped to lead within it.
This transformation is more than a matter of adopting new technology. It reflects a broader rethinking of business models and strategic priorities. Some recycling firms are moving into areas such as anaerobic digestion, gasification or advanced thermal treatments, while energy companies are investing in circular economy ventures. Manufacturers are reassessing how materials and waste fit into their long-term value chains. The ability to create value from resources that were previously overlooked is becoming an increasingly important part of financial and environmental performance. Activities that once sat at the edges of the energy system now interact with it far more directly.
This convergence presents a significant growth opportunity, but it also brings one of the most complex leadership challenges the sector has faced. Markets in energy-from-waste, chemical recycling, carbon capture and biofuels are continuing to develop, and they operate differently from the legacy waste sector. They require leaders who can understand recycling logistics and material flows while also navigating energy systems, policy frameworks, investment cycles and innovation pathways. Leadership expectations have broadened, and many companies are discovering that the capabilities which served them well in the past do not fully match what is now required.
In our work across industrial, manufacturing and cleantech sectors, we are seeing first-hand how this pressure is being felt by boards and senior management teams. They are asking critical questions: Do we have the leadership to move new technologies from early deployment into scalable operations? Who can manage increasingly detailed regulatory and investment requirements? How do we compete for technical and commercial talent when adjacent industries such as energy, biotechnology and digital infrastructure are seeking the same skills? These are not abstract considerations. They are immediate pressures that will influence which companies progress as the sector continues to evolve.
One of the most significant risks in this transition is underestimating the strategic role of talent. The shift from linear waste management models to more integrated, cross-sector activity requires leadership that can manage complexity, scale and uncertainty, often in markets that are still developing. This is especially true for businesses expanding into areas like chemical recycling or energy recovery, where effective progress requires bringing engineering, finance, policy and operations together in a coherent way. Technical expertise remains essential, but commercial insight, adaptive thinking and the ability to lead organisational change are now just as important.
Firms that are performing well are not necessarily the largest or best resourced. They are the ones that recognise early where their leadership gaps lie, understand the external market and are willing to bring in expertise from outside the traditional boundaries of the sector. This often means drawing on experience from renewables, engineering or advanced manufacturing. These organisations take a forward-looking approach to capability, building leadership teams that support both day-to-day continuity and future development.
Specialist executive search has a clear role in this. In a competitive and highly specialised market, many of the most relevant candidates are not actively seeking new opportunities and may not be visible through conventional recruitment methods. Reaching these individuals, understanding niche technical and commercial profiles and assessing leadership fit in unfamiliar contexts are critical capabilities that specialist search partners provide. At Newman Stewart, we work with clients to navigate this complexity and secure the leaders who can support growth in a changing market.
It is also important to recognise that this is not only about external recruitment. Some of the most successful organisations are blending internal succession with targeted external appointments to create leadership teams capable of managing both stability and change. They are investing in development, building resilience within their teams and strengthening organisational capacity through new perspectives where required. A deliberate approach to talent helps reduce the risk of delays, stalled projects and missed opportunities.
The energy transition within recycling is already influencing business models, investment decisions and competitive positioning. Recognising how leadership requirements are changing gives organisations a clearer basis for the decisions they need to make. For senior teams, the questions are straightforward: Do we have the leadership needed for the next phase of the sector’s development? If not, how will we acquire it, and how quickly can we act?
Subscribe for free