If you read page 49 of the document you link:

> Recovery Groups One of the most powerful capabilities that a team administrator has is the power to assign members to the team’s Recovery Group. In most configurations the assignment is automatic and Owners, Organizers, and Administrators will automatically be made members of the Recovery Group. In 1Password Families there is no ability to separate the roles of Owner, Administrator, and Recovery Group member; they are all wrapped up as “Organizer.” With 1Password Teams Administrators are given more control, but not all of the underlying flexibility may be exposed to the user.17 17We discovered during our beta testing that it was difficult to make the distinction between Owners, Administrators, vault Managers, and Recovery Group members clear enough for those distinctions to be sufficiently useful. This document describes recovery in terms of the Recovery Group even when the group is not exposed to the Team administrator in those terms.

> Implicit sharing When a vault is created, a copy of the vault key is encrypted with the public key of the Recovery Group. The members of the Recovery Group are able to decrypt the private key of the Recovery Group. Thus from an exclusively cryptographic point of view the members of the Recovery Group have access to all of the vaults. Recovery Group members never have the ability to learn anyone’s account password, Secret Key, Account Unlock Key (AUK), or SRP-𝑥. Recovery is recovery of the vault keys; it is not recovery of account passwords nor Secret Keys.

Exactly: 1Password doesn’t have the keys. Recovery works because the vaults are encrypted with the keys of everyone in the recovery group. No “server side” encryption instead of end-to-end.