An Interview With Russell McLeod
Successful circular businesses actively engage with stakeholders, including suppliers, customers, and community partners. For example, we actively work with government regulators to ensure that we are exceeding our environmental compliance. We also work closely with other wreckers and car removal businesses to ensure a consistent approach to solving the issue of sustainability in the auto industry.
In our current economic model, we see a lot of waste and inefficiency. Products are designed, used, and then discarded, often creating environmental and economic burdens. The circular economy offers a solution by designing out waste and keeping materials in use for as long as possible. This shift can lead to innovative business models, sustainability, and economic resilience. How are companies making this transition, and what can others learn from their journey? I had the pleasure of interviewing Allen Nguyen.
Allen Nguyen is the Marketing Manager at Metro Car Removal. In his role, he has gained first-hand experience in the circular economy and specifically how it can improve sustainability in the auto industry. He is involved in all aspects of the business from car removal to the dismantling and sale of used parts to local businesses and customers.
Thank you so much for doing this with us! Our readers would love to get to know you a bit better. Can you tell us your “Origin Story”? Can you tell us the story of how you grew up?
My parents came to Australia on a boat after the Vietnam war, where they settled in Sydney. As a 2nd gen immigrant, I have always strived to excel in all aspects of life and give back to my community in any way I can. Coming from an Asian background, my life was like many others who’s parents had came here in search of a better life. I had to learn English as a second language and grew in a predominantly Asian neighbourhood which I still call home.
I was lucky enough to have a good education and plenty of fun in my childhood. Later in life I experienced significant mental health challenges that many 2nd generation immigrants struggle with, however it has helped me become who I am today.
Could you share with us your journey and the pivotal moments that led you to focus on the circular economy within your business?
I’ve been in marketing for 4 years now, working across a range of industries from legal all the way to luxury service providers. I have always been interested in the circular economy, but have struggled to find opportunities, especially as I’m from a migrant background.
Before my current role I was working at a few marketing agencies that serviced local SME’s. I found that I was not meaningfully contributing to the the world or my local community so I went in search of new opportunities, where I could make a difference.
Luckily I stumble upon a job ad at Metro Car Removal and I’ve been working here for over a year now. At Metro Car Removal we experienced huge growth ever since the Covid pandemic disrupted global auto supply chains. I play a large role in expanding our business through marketing so thatca we n continue to serve our customers in the circular economy.
What experiences in your background have shaped your understanding and commitment to sustainable business practices?
As a young person I was always frustrated by the lack of government action global warming and the excessive consumption of fossil fuels and non renewable resources.
I was taught at school that the planet was warming due to human activities and was so frustrated when I learnt that despite knowing this, so little was being done!
Seeing this inaction, I wanted to see if I could make a difference in my own life instead of waiting for the government or others to act.
Can you tell us about a significant challenge you’ve faced in your career that has influenced your approach to business and sustainability?
I can’t say there has been a specific challenge, but more generally the competition between profit and sustainability has always come up.
It’s taught me that business and sustainability go hand in hand. This means that we have to engage all stakeholders in the process instead of competing with each other. I have found that listening and positive collaboration with internal ans external stakeholders is essential for driving sustainable business practises.
How has your company evolved to integrate circular economy principles, and what role have you played in this transformation?
Our company started with just a few trucks and a small wrecking yard in Sydney. We initially focused on collecting old cars that had reached the end of their life and working with 3rd parties to recycle them.
As our business grew we began to be more involved in all aspects of ther recycling process, ensuring that we could minimise auto waste.
Today we not only remove and collect end of life cars, we also dismantle them for parts which we resell nationally through our used parts business.
I was brought on as the marketing manager of Metro Care Removal, last year and since then I have grown organic web traffic to our used parts business by 4x. This has led to the need to establish an online store so that we can continue to scale our used parts sales Nationally.
With our new online store it is now easier than ever for our customers to search for the exact part they need and purchase all without having to make a single phone call or payment over the phone. Everything is online and efficient.
This ultimately means that we are able to re-use more parts from the cars that we dismantle improving our contribution to the circular economy.
What does ‘closing the loop’ in the circular economy mean to you, and why is it important for businesses today?
To me ‘closing the loop’ involves simply changing the way we think about our economy so that we can continue to grow while reducing our resource consumption to as close to 0 as possible. Currently we are very far away from achieving this.
However, I believe that is is more essential than ever for businesses due to economic incentives and changing consumer preferences towards sustainable products and services.
Businesses that are slow to follow the shift towards a circular economy will unfortunately be left in the dust by their competitors who are moving faster than they are towards a sustainable future.
Does designing products to be circular increase the cost of the product? What are the challenges of balancing cost with creating a circular product that has demand?”
Unfortunately in our consumption-driven capitalist economy ‘cost’ is often viewed through a very narrow lens which often only looks at the production cost. Social and environmental costs are not counted and thus this usually means that the cheapest and often ethically questionable products are the ones that end up being made.
Products are that are designed to be circular face a number of complex cost barriers including economies of scale and the complete lack of any established market in many cases.
Companies creating circular products have to balance the sustainability of the product with the business realities that all companies face.
Often products that are fully circular have little demand or are very costly, so business must consider consumer preferences in order to have a real impact and scale in the circular economy.
Can you identify the 2–3 critical mistakes companies often make when transitioning to a circular economy model?
Lack of Systems Thinking
Many companies focus on specific aspects of the circular economy, such as recycling or waste reduction, without considering the impact they have on the entire economic system. In many ways, this actually perpetuates the problem rather than fixing it due to greenwashing and virtue signalling which is evident especially in the fast fashion industry.
Without a systematic approach to the issue, many companies are simply solving the symptoms while perpetuating the core issues. This distracts stakeholders from actual solutions that require attention which at worse created a net negative effect towards the transition to a circular economy.
Insufficient Stakeholder Engagement
Another common mistake is failing to engage with a wide variety of stakeholders early on in the process. And when they do engage with stakeholders, this engagement is often lacking in meaningful depth or substance. With most companies seeing it as a tick a box exercise rathern than an essential tenant of transition towards the circular eocnomy.
Without wide spread buy-in and collaboration, companies struggle with issues such as sourcing sustainable materials, encouraging customers to return products for recycling, or meeting regulatory requirements.
Successful circular models typically involve strong partnerships and transparent communication with all stakeholders including the government and consumers at large to ensure that everyone understands and has a say in the process Many stakeholder engagements fail because some stakeholders are given priority over others due to economic incentives and lack of regulatory oversight from the government.
How does your company address the entire lifecycle of a product, from design to end-of-life, to ensure circularity?
As a car wrecker and removal company here’s how we ensure circularity at each stage:
1. Design and Acquisition
We focus on acquiring vehicles within demand parts, thus maximising the value of each car. We also collaborate with manufacturers and suppliers to understand the materials and components used in newer vehicles especially EV’s, ensuring we have the expertise to efficiently dismantle and recycle them.
2. Dismantling and Parts Recovery
Our dismantling process is designed to recover as many usable parts as possible. We carefully disassemble vehicles, inspecting each component for quality and functionality. Usable parts are cleaned, tested, and cataloged for resale based on customer demand.
Parts with the highest demand are prioritised for dismantling and storage in our onsite warehouse for quick dispatch and sale to our customers.
3. Resale and Reuse
Recovered parts are sold through our local and international networks, including online platforms and direct sales to repair shops and consumers. We partner with wreckers and uses parts sellers across Australia to ensure that we can always supply our customers with the used parts they need.
Likewise if we cannot sell a particular part or car, we export it to our international partners that can refurbish write off vehiclesmore efficiently to ensure the vehicle has a new life and landfill waste is minimised.
4. End-of-Life
For parts that cannot be reused, we have robust recycling processes in place. Metals, plastics, and other materials are separated and sent to specialised recycling facilities. We work with certified recyclers to ensure that these materials are processed in an environmentally responsible manner.
Hazardous materials, such as fluids and batteries, are handled according to strict environmental regulations, preventing pollution to the environment.
Our end-of-life management includes comprehensive record-keeping, ensuring transparency and accountability in our recycling practices.
What innovative strategies has your company implemented to reduce waste and promote resource efficiency?
We partner with a variety of businesses locally and internationally to leverage their cost efficiencies in the circular economy.
For example where there is as a lack of demand for parts of a certain car model, we directly export to our international partners.
Our partners specialise in the full refurbishment of write-off cars, ensuring that the entire vehicle can be used as it was previously.
This is not possible with local businesses due to the high cost of Austrlaian labour. By partnering with international players we can improve the circularity of our processes.
What role do partnerships and collaborations play in your efforts to close the loop and create a more sustainable business model?
Partnerships and collaborations play a vital role in our sustainability efforts by enabling us to effectively manage resource recovery and recycling, access new tech, and expand our market reach.
We partner with specialised recyclers, technology providers, and industry organizations to make sure that we are making use of the latest innovations and best practices, particularly in handling complex components like EV batteries and components. This is line with our objective of continuous improvement in our processes to achieve full circularity in our business.
Additionally, our partnerships with other businesses and the local community help us promote the use of used parts and support local organisations i the circular economy through sponsorships.
What are your “5 Things You Need To Create a Successful Circular Economy Based Business”?
1. Design for Longevity and Reusability from the start.
For example at Metro Car Removal, we do our best to test and refurbish our parts to ensure that they continue working for our customers in the long term
2. Efficient Resource Recovery and Waste Minimisation.
At Metro Car Removal we have continuously improved our resource recovery process as we expand our business. Through vertical integration of our supply chain from car removal to dismantling we ensure that we have more control over waste reduction and resource recover. This approach not only improves sustainability but also helps us to improve our own profit margins by taking out itnermediaries.
3. Continuous improvement.
In a largely legacy industry such as the auto industry those that innovate reap the rewards of the circular economy. In our business we constantly strive to increase our efficiency and processes to stay ahead of our competitors. Personally I have been involved in expanding our online reach through SEO to ensure that we can service more customers than ever before!
4. Strong Stakeholder Engagement.
Successful circular businesses actively engage with stakeholders, including suppliers, customers, and community partners. For example, we actively work with government regulators to ensure that we are exceeding our environmental compliance. We also work closely with other wreckers and car removal businesses to ensure a consistent approach to solving the issue of sustainability in the auto industry.
5. Focus on Transparency and Accountability.
Transparency in sourcing, production processes, and end-of-life product management is key for an honest and accountable move to sustainable circular practises.For us this has meant working more closely with government environmental agencies to improve our compliance with existing environmental laws. This has led us to be recognised as a champion when it comes to recycling in the local auto industry.
What is one actionable step companies can take today to move closer to a circular economy model?
I would say, listen to your customers and what they value in a sustainable company. Running a focus group can be a simple way to achieve this and equally important is taking their feedback to senior management directly rather than writing a report and filing it away once the box has been ticked.
Could you share a story of a business or leader who has inspired you in the realm of the circular economy?
I am always inspired by Ellen MacArthur, a former professional sailor who founded the Ellen MacArthur Foundation. Her foundation has been pivotal in promoting and advancing the circular economy globally.
Ellen’s journey began when she sailed solo around the world, experiencing for herself the scarcity of our natural resources and the importance of promoting sustainability on a systems level.
I was especially inspired by her New Plastics Economy inititiative, launched to tackle plastic waste. The initiative brings together key stakeholders across the plastics value chain to rethink and redesign the future of plastics, focusing on creating a system where plastics never ends up in landfill or our natural environment ever again.
How can our readers further follow your work or your company online?
For the latest updates you can follow us on our website here: https://www.metrocarremoval.com.au/
This was great. Thanks for taking time for us to learn more about you and your business. We wish you continued success!
About the Interviewer: Russell McLeod is an experienced business leader, social entrepreneur, and mentor. A champion of profit with purpose, the circular economy and of collaboration for positive progress.
Russell is the founder of Mightyhum a Toronto-based impact enterprise dedicated to supporting growing organizations. And, while it’s not a requirement, the Mightyhum team has a passion for collaborating with purpose-driven businesses. Mightyhum specializes in providing consulting services and turning hairy audacious concepts into achievable ventures & projects. The Mightyhum team work with C-suite executives and leaders, developing new product offerings, effective go-to-market strategies, building for profitability, and streamlining operations. Before Mightyhum, Russell was involved in the world of social enterprise as the Executive Director of ME to WE, one of Canada’s best known and most awarded social enterprises. While at ME to WE, the team demonstrated that being profitable and impactful was indeed possible. During his tenure, ME to WE delivered $20M in cash and in-kind to WE Charity, helping transform the lives of over 1 million people through access to clean water; the lives of 200,000 children with access to education; and 30,000 women-led businesses launched globally.
Russell’ personal mission is to inspire others that there is ‘a better way to do business,’ ‘that through business we can solve some of the world’s problems at the same time.’ You can follow Russell’s work at https://www.linkedin.com/in/russell-mcleod1/ or www.mightyhum.com.
Closing the Loop: Allen Nguyen Of Metro Car Removal On Embracing the Circular Economy was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.