Promising Waste Management Stocks To Keep An Eye On – October 30th – MarketBeat

Analysis of Waste Management Sector Stocks and Their Contribution to Sustainable Development Goals (SDGs)

The waste management sector, comprising companies engaged in the collection, transport, processing, recycling, and disposal of waste, is integral to sustainable development. Investment in this sector is often viewed as defensive, with growth linked to economic activity and sustainability trends. An analysis of key companies highlights their direct and indirect contributions to the United Nations Sustainable Development Goals (SDGs). This report assesses seven waste management companies noted for recent high trading volume and their operational alignment with global sustainability objectives.

1. Waste Management (WM)
2. GFL Environmental (GFL)
3. Custom Truck One Source (CTOS)
4. Concrete Pumping (BBCP)
5. Avalon (AWX)
6. ESGL Holdings Limited (ESGLW)
7. LanzaTech Global (LNZAW)

Company Profiles and SDG Alignment

Waste Management (WM)

Waste Management, Inc. delivers environmental solutions to residential, commercial, industrial, and municipal customers in the United States and Canada. The company’s operations include waste collection, material recovery, and the operation of transfer stations and landfill facilities.

• SDG 7 (Affordable and Clean Energy): The company develops and operates landfill facilities that capture landfill gas, converting it into a source of renewable natural gas and electricity.
• SDG 11 (Sustainable Cities and Communities): Its core services of collecting and transporting waste and recyclable materials are essential for maintaining clean and functional urban environments.
• SDG 12 (Responsible Consumption and Production): Through its material recovery facilities (MRFs), the company promotes circular economy principles by processing recyclable materials for reuse.
• SDG 13 (Climate Action): By capturing landfill gas that would otherwise be released into the atmosphere, the company actively mitigates greenhouse gas emissions.

GFL Environmental (GFL)

GFL Environmental Inc. provides non-hazardous solid waste management, liquid waste management, and soil remediation services across Canada and the United States. Its services cater to municipal, residential, commercial, and industrial sectors.

• SDG 11 (Sustainable Cities and Communities): GFL’s comprehensive waste management services, including collection, transfer, and disposal, are fundamental to the infrastructure of sustainable communities.
• SDG 12 (Responsible Consumption and Production): The company’s recycling and soil remediation activities support the responsible management of waste and the restoration of contaminated land, contributing to sustainable production cycles.

Custom Truck One Source (CTOS)

Custom Truck One Source, Inc. supplies specialty equipment through rental and sales to infrastructure-related industries, including waste management, electric utilities, and telecommunications. It operates through Equipment Rental Solutions, Truck and Equipment Sales, and Aftermarket Parts and Services segments.

• SDG 9 (Industry, Innovation, and Infrastructure): By providing the specialized vehicles and equipment necessary for waste collection and transport, CTOS serves as a critical enabler for the waste management industry’s infrastructure, indirectly supporting multiple sustainability goals.

Concrete Pumping (BBCP)

Concrete Pumping Holdings, Inc. provides concrete pumping services and specialized waste management services for the construction industry under its Eco-Pan brand. These services include industrial cleanup and waste containment in the United States and the United Kingdom.

• SDG 11 (Sustainable Cities and Communities): The Eco-Pan brand’s focus on managing waste at construction sites contributes to cleaner, safer, and more sustainable building practices in urban and infrastructure projects.
• SDG 12 (Responsible Consumption and Production): The company facilitates the responsible management of construction waste, a significant waste stream, by providing effective containment and cleanup solutions.

Avalon (AWX)

Avalon Holdings Corporation offers waste management services to industrial, commercial, municipal, and governmental customers. Its operations include hazardous and nonhazardous waste disposal brokerage, management services, and captive landfill management.

• SDG 12 (Responsible Consumption and Production): Avalon’s specialization in the management and brokerage of both hazardous and nonhazardous waste ensures environmentally sound disposal, which is critical for preventing pollution and protecting ecosystems.

ESGL Holdings Limited (ESGLW)

ESGL Holdings Limited, based in Singapore, focuses on providing advanced waste solutions that regenerate industrial waste into circular products. The company utilizes modern technologies and renewable energy in its processes.

• SDG 7 (Affordable and Clean Energy): The company’s commitment to using renewable energy in its industrial processes supports the global transition to cleaner energy sources.
• SDG 9 (Industry, Innovation, and Infrastructure): ESGL’s model of using technology to transform waste into new products exemplifies industrial innovation for sustainability.
• SDG 12 (Responsible Consumption and Production): The core business of creating circular products from industrial waste directly advances the principles of a circular economy, significantly reducing waste and promoting sustainable consumption patterns.

LanzaTech Global (LNZAW)

LanzaTech Global is identified in the source material as a key company to watch within the waste management sector based on recent market activity.

Analysis of Sustainable Development Goals in the Article

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

The article discusses companies involved in waste management, recycling, and energy generation from waste. These activities are directly connected to several Sustainable Development Goals (SDGs) focused on environmental sustainability, clean energy, and sustainable urban development.

• SDG 7: Affordable and Clean Energy: The article mentions companies that operate “waste-to-energy facilities” and use “landfill gas… as renewable natural gas for generating electricity.” This directly relates to increasing the share of renewable and clean energy sources.
• SDG 9: Industry, Innovation and Infrastructure: The services described, such as industrial cleanup, soil remediation, and regenerating industrial waste into “circular products,” contribute to making industries and infrastructure more sustainable and resource-efficient.
• SDG 11: Sustainable Cities and Communities: The core business of the featured companies is the management of “municipal, commercial and industrial waste.” This is a critical service for maintaining clean, safe, and sustainable urban environments.
• SDG 12: Responsible Consumption and Production: The article’s central theme is waste management, which includes services like “recycling” and operating “material recovery facility (MRF).” These activities are fundamental to reducing waste generation and promoting a circular economy.

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

Based on the services and operations described in the article, the following specific SDG targets can be identified:

1. Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
   • Explanation: The article states that Waste Management, Inc. “operates landfill facilities that produce landfill gas used as renewable natural gas for generating electricity.” This is a direct contribution to increasing the share of renewable energy. The general mention of “waste-to-energy facilities” also supports this target.
2. Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and processes.
   • Explanation: ESGL Holdings Limited is described as a company that “regenerates industrial waste into circular products using technologies and renewable energy.” This activity directly aligns with retrofitting industries for sustainability and adopting clean technologies.
3. 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.
   • Explanation: The companies listed, such as Waste Management, Inc. and GFL Environmental Inc., provide comprehensive “non-hazardous solid waste management” services for “residential, commercial, industrial, and municipal customers.” Their work in collecting, transporting, and disposing of waste directly addresses the municipal waste management aspect of this target.
4. Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.
   • Explanation: The article repeatedly highlights recycling as a key service. It mentions companies that “collect, transport, process, recycle and dispose of” waste and operate “material recovery facility (MRF),” which are central to achieving waste reduction through recycling.

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

The article does not provide specific quantitative data but implies several indicators through the description of the companies’ operations:

• Indicator for Target 7.2 (Implied): The amount of energy generated from waste sources.
  • Explanation: The mention of “waste-to-energy facilities” and the production of “renewable natural gas for generating electricity” from landfills implies that the output of these facilities (in kilowatt-hours or cubic meters of gas) serves as a measure of progress towards increasing the share of renewable energy.
• Indicator for Target 11.6 (Implied): The proportion of municipal solid waste collected and managed in controlled facilities.
  • Explanation: The article describes companies that “own, develop, and operate landfill facilities,” “transfer stations,” and provide “collection services.” The scope and scale of these operations directly relate to the proportion of waste being formally managed, which is the basis for Indicator 11.6.1.
• Indicator for Target 12.5 (Implied): National recycling rate and tons of material recycled.
  • Explanation: The existence and operation of “recycling services” and “material recovery facility (MRF)s” by companies like Waste Management, Inc. are prerequisites for measuring recycling rates. The volume of materials processed by these facilities would be a direct indicator of recycling activity (Indicator 12.5.1).

4. Summary Table of SDGs, Targets, and Indicators

Source: marketbeat.com