Interstate Waste Services buys Closter-based Filco Carting Corp. – ROI-NJ

Report on the Acquisition of Filco Carting Corp. by Interstate Waste Services Inc. and its Alignment with Sustainable Development Goals

Executive Summary

On December 1, Interstate Waste Services Inc. (IWS) announced its acquisition of Filco Carting Corp. This strategic transaction enhances IWS’s operational capacity within the New York City metropolitan area, specifically strengthening its preparedness for the city’s Commercial Waste Zones (CWZ) program. The acquisition directly supports several United Nations Sustainable Development Goals (SDGs) by promoting more efficient urban waste management, contributing to responsible production and consumption patterns, and fostering sustainable economic growth.

Transaction Details and Strategic Rationale

The acquisition integrates Filco Carting Corp.’s extensive operations into the IWS network. The primary objective is to bolster the capabilities of Action Environmental Services, an IWS subsidiary, in alignment with the sustainability and efficiency goals of the NYC CWZ initiative.

• Acquiring Entity: Interstate Waste Services Inc.
• Acquired Entity: Filco Carting Corp.
• Key Assets Integrated:
  • Commercial and residential collection services for approximately 5,000 clients.
  • Existing municipal contracts.
  • A fleet of nearly 40 vehicles.
  • A workforce of over 100 employees.

Contribution to Sustainable Development Goals (SDGs)

This corporate consolidation is a significant step toward achieving key sustainability targets in the waste management sector. The operational synergies created by the acquisition directly address the following SDGs:

1. SDG 11: Sustainable Cities and Communities
   • The acquisition supports the CWZ program’s goal of creating safer, more resilient, and sustainable urban environments.
   • Consolidating waste collection routes is expected to reduce vehicle miles traveled, leading to decreased traffic congestion, air pollution, and noise in urban communities.
2. SDG 12: Responsible Consumption and Production
   • By integrating recycling and solid waste services, IWS can enhance waste diversion and recycling rates across a broader customer base.
   • This promotes the principles of a circular economy by improving the efficiency of collecting and processing materials for reuse, thereby ensuring sustainable consumption and production patterns.
3. SDG 8: Decent Work and Economic Growth
   • The integration of more than 100 Filco employees into the IWS organization secures local jobs and supports sustained, inclusive economic growth.
   • The expansion strengthens a critical infrastructure service, contributing to the economic stability of the region.
4. SDG 13: Climate Action
   • Optimized collection routes resulting from the consolidation will reduce fuel consumption and the carbon footprint of the waste collection fleet, contributing directly to climate change mitigation efforts.
5. SDG 17: Partnerships for the Goals
   • This acquisition exemplifies a private sector partnership aimed at achieving public policy objectives for sustainability, demonstrating a collaborative approach to advancing the SDGs.

Regional Market Consolidation for Enhanced Sustainability

The acquisition of Filco Carting Corp. is part of a broader IWS strategy to partner with established operators to build a more efficient and sustainable waste management network. Other recent acquisitions contributing to this vision include:

• Diverse Recycling Solutions
• Full Circle Recycling Services
• Amro Carting Corp.
• Select assets of Evergreen Waste Corp. and City Waste Services

These strategic moves collectively advance IWS’s capacity to deliver environmentally responsible waste and recycling services throughout the New York, New Jersey, and Connecticut markets, reinforcing its commitment to the Sustainable Development Goals.

Analysis of SDGs, Targets, and Indicators

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

1. SDG 8: Decent Work and Economic Growth
   • The article discusses the acquisition of a company, which involves the integration of its workforce. The mention of “more than 100 employees” being integrated into the new operational network connects to the goal of promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all. The acquisition itself is a form of economic activity and consolidation within the waste management industry.
2. SDG 11: Sustainable Cities and Communities
   • The core business of the companies mentioned, Interstate Waste Services (IWS) and Filco Carting Corp., is providing “solid waste collection, recycling and disposal services” within the “New York City metropolitan area.” This directly relates to making cities and human settlements inclusive, safe, resilient, and sustainable, particularly concerning municipal services like waste management. The article highlights the strengthening of “commercial waste zones (CWZ) preparedness,” which is a city-level initiative for sustainable waste management.
3. SDG 12: Responsible Consumption and Production
   • The article explicitly states that IWS provides “recycling” services and has acquired companies specializing in this area, such as “Diverse Recycling Solutions” and “Full Circle Recycling Services.” This directly addresses the goal of ensuring sustainable consumption and production patterns by focusing on the management of waste through recycling, which is a key component of a circular economy.

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

1. Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.
   • The integration of “more than 100 employees” from Filco Carting into IWS as part of the acquisition directly relates to maintaining employment. This action supports job stability and productive employment within the waste management sector.
2. 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 article’s focus on the expansion and strengthening of solid waste collection and disposal services in New York City directly addresses this target. By acquiring Filco, which services “about 5,000 commercial, residential, industrial and institutional firms,” IWS is enhancing its capacity for municipal waste management in a major urban area.
3. Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.
   • The business model of IWS includes recycling services. The strategic acquisitions of specialized companies like “Full Circle Recycling Services” and “Diverse Recycling Solutions” demonstrate a clear effort to increase capacity and efficiency in recycling, which is a primary method for reducing the final volume of waste requiring disposal.

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

1. Implied Indicator for Target 8.5: Number of jobs maintained or created.
   • The article states that “more than 100 employees” will be integrated into IWS’s operational network. This figure serves as a direct, quantifiable measure of employment being sustained through the business acquisition, contributing to the goal of full and productive employment.
2. Implied Indicator for Target 11.6: Coverage of waste collection services.
   • The article mentions that Filco services “about 5,000 commercial, residential, industrial and institutional firms.” This number acts as a proxy indicator for the proportion of urban entities receiving managed waste collection services, which is a key component of Indicator 11.6.1 (Proportion of municipal solid waste collected and managed in controlled facilities).
3. Implied Indicator for Target 12.5: Growth in recycling capacity.
   • While the article does not provide specific data on tons of material recycled (as per Indicator 12.5.1, National recycling rate), it implies an increase in recycling capacity. The acquisition of specialized recycling companies (“Diverse Recycling Solutions,” “Full Circle Recycling Services”) is a qualitative indicator of an expanded commitment and operational ability to handle and process recyclable materials, thus contributing to the reduction of waste.

4. Table of SDGs, Targets, and Indicators

Source: roi-nj.com