Promising Waste Management Stocks To Keep An Eye On – November 10th – MarketBeat

Analysis of Waste Management Sector’s Contribution to Sustainable Development Goals

Introduction: The Role of Waste Management in Global Sustainability

The waste management sector plays a pivotal role in advancing the United Nations’ Sustainable Development Goals (SDGs). Companies within this industry are instrumental in creating sustainable urban environments, promoting responsible consumption and production patterns, and mitigating climate change. Their operations directly contribute to key targets related to waste reduction, recycling, renewable energy generation, and the development of circular economies. This report analyzes the contributions of seven key publicly traded companies in this sector.

Corporate Contributions to Sustainable Development

1. Waste Management, Inc. (WM)
   • Contributes to SDG 11 (Sustainable Cities and Communities) by providing essential collection, transport, and disposal services for municipal and industrial waste.
   • Supports SDG 12 (Responsible Consumption and Production) through the operation of material recovery facilities (MRFs) that facilitate recycling.
   • Advances SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action) by capturing landfill gas and converting it into renewable natural gas and electricity, reducing greenhouse gas emissions.
2. GFL Environmental Inc. (GFL)
   • Addresses SDG 11 and SDG 12 by offering comprehensive solid and liquid waste management services, including collection, recycling, and disposal for diverse customers.
   • Promotes SDG 6 (Clean Water and Sanitation) through its soil remediation services, which help prevent land and water contamination.
3. Custom Truck One Source, Inc. (CTOS)
   • Supports SDG 9 (Industry, Innovation, and Infrastructure) by providing the specialized equipment necessary for the waste management industry to operate effectively and build resilient infrastructure for sustainability.
   • Indirectly enables the achievement of SDG 11 and SDG 12 by equipping the companies that perform essential waste management tasks.
4. Avalon Holdings Corporation (AWX)
   • Contributes to SDG 12 by providing brokerage and management services for both hazardous and nonhazardous waste, ensuring its environmentally sound disposal.
   • Upholds the principles of SDG 11 by managing captive landfills and offering turnkey operational services to ensure waste is handled safely within communities.
5. Concrete Pumping Holdings, Inc. (BBCP)
   • Advances SDG 12 through its Eco-Pan brand, which provides industrial cleanup and waste containment services, primarily for the construction industry, promoting responsible management of industrial byproducts.
   • Supports SDG 9 by offering solutions that help make industrial and construction processes more sustainable.
6. LanzaTech Global (LNZAW)
   • Focuses on SDG 9 and SDG 12 by pioneering carbon recycling technologies that transform waste and pollution into valuable products, fostering a circular economy.
   • Contributes to SDG 13 by capturing carbon emissions that would otherwise be released into the atmosphere and converting them into sustainable fuels and chemicals.
7. ESGL Holdings Limited (ESGLW)
   • Directly supports SDG 12 by regenerating industrial waste into circular products, minimizing landfill use and promoting resource efficiency.
   • Aligns with SDG 7 and SDG 9 by utilizing renewable energy and innovative technologies in its waste regeneration processes, contributing to sustainable industrialization.

Analysis of Sustainable Development Goals in the Article

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

1. SDG 7: Affordable and Clean Energy
   • The article mentions that Waste Management, Inc. “owns, develops, and operates landfill facilities that produce landfill gas used as renewable natural gas for generating electricity.” This directly connects to the goal of increasing the use of renewable energy sources.
2. SDG 11: Sustainable Cities and Communities
   • The core business of the companies discussed is the management of “municipal and industrial waste.” This includes collection, transport, treatment, and disposal services for residential, commercial, and municipal customers, which is a critical component of urban infrastructure and environmental management in cities.
3. SDG 12: Responsible Consumption and Production
   • The article highlights services like “recycling,” “hazardous-waste handling,” and the regeneration of “industrial waste into circular products.” These activities are central to achieving sustainable consumption and production patterns by reducing waste and promoting a circular economy.
4. SDG 13: Climate Action
   • By capturing landfill gas, which is primarily methane (a potent greenhouse gas), and converting it into “renewable natural gas for generating electricity,” companies like Waste Management, Inc. are actively involved in mitigating climate change. This process reduces greenhouse gas emissions that would otherwise be released into the atmosphere from landfills.

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

1. Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
   • This target is addressed by Waste Management, Inc.’s practice of utilizing landfill gas to generate electricity. The article states the company uses this gas “as renewable natural gas for generating electricity,” which contributes directly to increasing the proportion of renewable energy.
2. Target 11.6: Reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.
   • The companies described, such as Waste Management, GFL Environmental, and Avalon Holdings, provide comprehensive “non-hazardous solid waste management and environmental services” for “municipal, residential, and commercial, and industrial customers.” Their operations in collecting, transporting, and disposing of waste are fundamental to achieving this target.
3. Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.
   • This target is directly supported by the services mentioned in the article. Companies offer “recycling” services and, in the case of ESGL Holdings, “regenerate industrial waste into circular products.” These actions aim to reduce the final volume of waste that requires disposal and promote the reuse of materials.
4. Target 13.2: Integrate climate change measures into national policies, strategies and planning.
   • While the article focuses on corporate actions rather than national policies, the activities of these companies represent the implementation of climate change mitigation strategies at a corporate level. The conversion of landfill gas to energy is a key strategy for reducing emissions from the waste sector, aligning with broader climate action goals.

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 7.2: Renewable energy share in the total final energy consumption (Indicator 7.2.1).
   • The article implies this indicator by describing the generation of electricity from landfill gas. Progress could be measured by the amount of electricity (in kWh) produced from this renewable source by companies like Waste Management, Inc. and its contribution to the overall energy grid.
2. Implied Indicator for Target 11.6: Proportion of municipal solid waste collected and managed in controlled facilities out of total municipal waste generated, by cities (Indicator 11.6.1).
   • The article describes companies that “collect, transport, treat and dispose of municipal and industrial waste.” The volume of waste managed by these companies (e.g., Waste Management, GFL Environmental) serves as a direct measure for this indicator, reflecting the extent to which urban waste is being handled in an environmentally sound manner through services like “landfill operations” and “material recovery facility (MRF).”
3. Implied Indicator for Target 12.5: National recycling rate, tons of material recycled (Indicator 12.5.1).
   • The mention of “recycling” services and facilities like MRFs implies that the amount of material processed for recycling is a key performance metric for these companies. The total tonnage of materials recycled by these firms would be a direct contribution to this indicator. Furthermore, ESGL’s work to create “circular products” from waste provides a tangible measure of reuse and waste reduction.

4. Summary Table of SDGs, Targets, and Indicators

Source: marketbeat.com