Greater Manchester has decided to extend its recycling and waste management contracts with Suez Recycling and Recovery UK until 2034. The contracts, valued at over £70m annually, were initially signed in 2019. This significant decision aims to enhance social value and community projects within the region.
Since forming in 2022, Suez Recycling and Recovery UK has grown to become a leading player in the waste and recycling industry. The extended contract not only underscores this growth but also highlights Greater Manchester’s commitment to social and environmental benefits.
Extension of the Contract
Greater Manchester Combined Authority (GMCA) has extended its recycling and waste management contracts with Suez Recycling and Recovery UK until 2034. The contracts are worth over £70m a year. The original contracts were signed in 2019 with an option to extend.
This extension makes use of the option built into the original seven-year contract. Greater Manchester is the largest waste disposal authority in the UK. Social value and community projects form a significant part of this deal.
Background of Suez
Controlled by French utility group Suez SA, Suez Recycling and Recovery UK was formed in 2022 following a merger between Veolia and Suez. Regulatory bodies in Europe demanded the divestment of certain assets to create ‘New Suez’.
Suez Recycling and Recovery UK is now the third largest waste recycling and recovery company in the UK. The company has more than 25,000 industrial and municipal customers, employs around 6,000 people, and generates a turnover of over £900 million.
The GM contract has significantly contributed to the company’s turnover. In the first year alone, the turnover increased by £72m due to this contract.
Focus on Social Benefits
The contracts are among the first in the UK to mandate a strong emphasis on social benefits. Since 2019, £1.3m has been invested in charities and community projects.
GMCA is highly focused on social value. The tender for the contracts gave a 15% weighting to social value marks, compared to a public sector procurement norm of 2-3%. This resulted in Suez developing 54 social value commitments.
These commitments have delivered wide-ranging social, environmental, and economic benefits. The estimated value of these benefits is over £1bn during the initial seven-year term of the contracts.
Innovative Projects
One of the key innovations includes setting up a network of Renew shops. These shops have diverted over 260,000 individual items to reuse.
These shops have raised more than £1 million for good causes across Greater Manchester. They contribute £100,000 a year to the Greater Manchester Mayor’s Charity, which tackles homelessness and rough sleeping.
Suez has also partnered with the social enterprise, Recycling Lives, which runs the electrical repair pod at the Renew Hub in Trafford Park.
Statements from Key Figures
Caroline Simpson, Group Chief Executive to GMCA, GMFRS, and TFGM, said this is good news for Greater Manchester residents. She highlighted the importance of pushing the boundaries on social value through public sector procurement.
Simpson also noted significant performance improvements, with only 0.2% of waste going to landfill and Household Waste Recycling Centres (HWRC) recycling near 60%. She expressed confidence that GMCA and Suez are well placed to meet future waste management challenges.
Sabrina Soussan, Chairman and CEO of Suez, said the renewal underlined the long-term trust and commitment to creating economic and social value through innovative solutions.
Future Perspectives
John Scanlon, CEO of Suez Recycling and Recovery UK, said he is proud of the innovations delivered to reuse and recycle more of Greater Manchester’s waste. He noted the collaborative approach defining the partnership with GMCA.
Scanlon added that the extension is testament to the successful relationship. He expressed readiness to navigate future changes and transitions.
Cllr Tom Ross, GMCA’s lead for Green City-Region, emphasized the security for jobs and investment in Greater Manchester’s waste and recycling ambitions. He expressed satisfaction with the achievements and excitement for future plans.
The extension of the waste management contract between Greater Manchester and Suez Recycling and Recovery UK until 2034 highlights innovations and social value. Strong community focus and pioneering waste solutions show the future of public sector procurement in the UK. This partnership is set to steer Greater Manchester towards a more sustainable and socially responsible future.