Best Waste Management Stocks To Follow Now – July 26th – MarketBeat

Best Waste Management Stocks To Follow Now – July 26th – MarketBeat

 

Report on Corporate Alignment with Sustainable Development Goals

Introduction

This report analyzes the operations of three companies—Halliburton, Waste Management, Inc., and Rockwell Automation—in the context of the United Nations Sustainable Development Goals (SDGs). These corporations, recently noted for high trading volume, operate in sectors critical to global sustainability, including energy services, environmental solutions, and industrial automation. Their activities directly and indirectly impact progress toward several key SDGs, particularly those related to energy, infrastructure, sustainable cities, and responsible production.

Halliburton (HAL)

Corporate Profile

Halliburton Company provides specialized products and services to the global energy industry. Its operations are divided into two primary segments:

  • Completion and Production: This segment focuses on services such as production enhancement, well cementing, and the provision of completion tools for downhole solutions.
  • Drilling and Evaluation: This segment provides solutions and services related to the drilling and evaluation phase of oil and gas wells.

Alignment with Sustainable Development Goals (SDGs)

Halliburton’s operations are primarily linked to the infrastructure and provision of global energy, connecting its activities to the following SDGs:

  1. SDG 7 (Affordable and Clean Energy): By providing essential services to the energy industry, Halliburton plays a role in the existing global energy supply chain, which relates to Target 7.1 concerning universal access to modern energy services.
  2. SDG 9 (Industry, Innovation, and Infrastructure): The company contributes to the development and maintenance of energy infrastructure through its technological products and services, a core component of industrial development.
  3. SDG 12 (Responsible Consumption and Production): The firm’s focus on providing efficient technological solutions for resource extraction can be viewed as a contribution to more responsible production patterns within the energy sector.

Waste Management, Inc. (WM)

Corporate Profile

Waste Management, Inc. is a leading provider of comprehensive environmental solutions for residential, commercial, industrial, and municipal clients in North America. Its core services are central to circular economy principles and sustainable urban living.

  • Collection and Transfer: The company manages the collection and transportation of waste and recyclable materials to transfer stations, material recovery facilities (MRFs), or disposal sites.
  • Resource Recovery and Renewable Energy: Waste Management owns and operates landfill facilities that capture landfill gas, a byproduct of decomposition, and convert it into a source of renewable energy. It also operates MRFs to sort and process recyclable materials.

Alignment with Sustainable Development Goals (SDGs)

Waste Management’s business model is intrinsically aligned with several key environmental and urban development SDGs:

  1. SDG 11 (Sustainable Cities and Communities): The company’s services directly address Target 11.6, which aims to reduce the adverse per capita environmental impact of cities, specifically through the improvement of municipal waste management.
  2. SDG 12 (Responsible Consumption and Production): Through its extensive recycling and material recovery operations, the company makes a significant contribution to Target 12.5, which calls for a substantial reduction in waste generation via prevention, reduction, recycling, and reuse.
  3. SDG 7 (Affordable and Clean Energy): By converting landfill gas into renewable natural gas and electricity, Waste Management actively supports Target 7.2, which seeks to increase the share of renewable energy in the global energy mix.
  4. SDG 6 (Clean Water and Sanitation): The provision of waste collection and disposal is a fundamental component of public sanitation services, contributing to the broader goals of SDG 6.

Rockwell Automation, Inc. (ROK)

Corporate Profile

Rockwell Automation, Inc. specializes in industrial automation and digital transformation solutions for a global client base. The company operates through three segments: Intelligent Devices, Software & Control, and Lifecycle Services, providing integrated hardware and software solutions that enhance industrial efficiency and sustainability.

Alignment with Sustainable Development Goals (SDGs)

Rockwell Automation’s technologies are instrumental in advancing sustainable industrial practices, aligning its mission with the following SDGs:

  1. SDG 9 (Industry, Innovation, and Infrastructure): The company’s solutions are central to Target 9.4, which encourages the upgrading of infrastructure and retrofitting of industries to make them sustainable. By increasing resource-use efficiency and promoting the adoption of clean technologies, its automation and digital solutions help build resilient and sustainable industrialization.
  2. SDG 12 (Responsible Consumption and Production): Industrial automation plays a critical role in optimizing manufacturing processes, which leads to a reduction in material waste, energy consumption, and water usage. This directly supports the goal of achieving more sustainable patterns of consumption and production.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

  • SDG 6: Clean Water and Sanitation: The article mentions companies providing “essential sanitation” and services for the “treatment and disposal of… hazardous waste,” which are critical for preventing water pollution and ensuring public health.
  • SDG 7: Affordable and Clean Energy: The article explicitly states that Waste Management, Inc. operates landfill facilities that “produce landfill gas used as renewable natural gas for generating electricity,” directly contributing to the clean energy supply.
  • SDG 8: Decent Work and Economic Growth: The entire article is framed around the economic performance and investment potential of large corporations (Halliburton, Waste Management, Rockwell Automation). It discusses their market capitalization, stock performance, and role in the economy, which relates to economic growth and productivity.
  • SDG 11: Sustainable Cities and Communities: The core business of “waste management stocks” involves the “collection, transportation, recycling, treatment and disposal of solid… waste” for “residential, commercial, industrial, and municipal customers.” These services are fundamental to managing the environmental impact of cities.
  • SDG 12: Responsible Consumption and Production: The article highlights the “growing emphasis on sustainability and resource recovery.” The mention of services like “recycling” and the operation of “material recovery facility (MRF)” by Waste Management, Inc. directly addresses the goal of reducing waste generation.

2. What specific targets under those SDGs can be identified based on the article’s content?

  1. Under SDG 6 (Clean Water and Sanitation):
    • Target 6.3: “By 2030, improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials…” The article’s reference to the “treatment and disposal of… hazardous waste” by companies in this sector is a direct action towards achieving this target by preventing contaminants from entering water systems.
  2. Under SDG 7 (Affordable and Clean Energy):
    • Target 7.2: “By 2030, increase substantially the share of renewable energy in the global energy mix.” The article’s description of Waste Management, Inc. generating “renewable natural gas for generating electricity” from landfill gas is a clear example of an activity that contributes to this target.
  3. Under SDG 8 (Decent Work and Economic Growth):
    • Target 8.2: “Achieve higher levels of economic productivity through diversification, technological upgrading and innovation…” The article discusses large, specialized companies contributing to the economy. The mention of Rockwell Automation providing “industrial automation and digital transformation solutions” points directly to technological upgrading for productivity.
  4. Under SDG 11 (Sustainable Cities and Communities):
    • Target 11.6: “By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.” The core services described, such as “collection, transportation, recycling, treatment and disposal of solid… waste” for municipal customers, are precisely the activities needed to meet this target.
  5. Under SDG 12 (Responsible Consumption and Production):
    • Target 12.5: “By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.” The article’s mention of “recycling,” “resource recovery,” and the operation of “material recovery facility (MRF)” directly aligns with this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

  1. For Target 7.2 (Increase renewable energy share):
    • Implied Indicator: The generation of electricity from renewable sources. The article’s statement that Waste Management, Inc. uses “landfill gas… for generating electricity” implies a measurable output of renewable energy, which aligns with Indicator 7.2.1 (Renewable energy share in the total final energy consumption).
  2. For Target 11.6 (Reduce environmental impact of cities via waste management):
    • Implied Indicator: The amount of waste properly managed. The description of Waste Management, Inc.’s services (“picking up and transporting waste and recyclable materials… to a transfer station, material recovery facility (MRF), or disposal site”) implies the collection and controlled management of municipal solid waste, which is the basis for Indicator 11.6.1 (Proportion of municipal solid waste collected and managed in controlled facilities).
  3. For Target 12.5 (Substantially reduce waste generation):
    • Implied Indicator: The rate and volume of recycling. The mention of “recycling” as a key activity and the operation of a “material recovery facility (MRF)” imply a process of separating and preparing materials for reuse. This directly relates to Indicator 12.5.1 (National recycling rate, tons of material recycled).
  4. For Target 8.2 (Achieve higher economic productivity):
    • Mentioned Indicators: The article is replete with financial metrics that serve as proxies for economic productivity and corporate value. These include “market cap,” “P/E ratio,” “debt-to-equity ratio,” and “dollar trading volume.” These are direct measures of the economic activity and value generated by these companies.

4. Table of SDGs, Targets, and Indicators

SDGs Targets Indicators (Mentioned or Implied in Article)
SDG 6: Clean Water and Sanitation 6.3: Improve water quality by reducing pollution and minimizing the release of hazardous materials. The provision of services for the “treatment and disposal of… hazardous waste.”
SDG 7: Affordable and Clean Energy 7.2: Increase substantially the share of renewable energy in the global energy mix. Generation of “renewable natural gas for generating electricity” from landfill facilities.
SDG 8: Decent Work and Economic Growth 8.2: Achieve higher levels of economic productivity through diversification and technological upgrading. Financial metrics such as “market cap,” “P/E ratio,” and the provision of “industrial automation and digital transformation solutions.”
SDG 11: Sustainable Cities and Communities 11.6: Reduce the adverse per capita environmental impact of cities, focusing on municipal waste management. Services for “collection, transportation… and disposal of solid… waste” for municipal customers.
SDG 12: Responsible Consumption and Production 12.5: Substantially reduce waste generation through recycling and reuse. The business of “recycling” and the operation of a “material recovery facility (MRF).”

Source: marketbeat.com