Top Waste Management Stocks To Add to Your Watchlist – November 1st – MarketBeat

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

Overview of Industry Alignment with Global Sustainability Targets

The waste management sector provides essential environmental services that are integral to achieving several United Nations Sustainable Development Goals (SDGs). Companies operating in this industry contribute directly to the development of sustainable infrastructure, responsible consumption patterns, and the creation of cleaner cities and communities. Their operations focus on the collection, processing, recycling, and disposal of waste, which are critical functions for advancing SDG 11 (Sustainable Cities and Communities) and SDG 12 (Responsible Consumption and Production). Furthermore, innovative practices such as waste-to-energy conversion support SDG 7 (Affordable and Clean energy) and SDG 13 (Climate Action). An examination of key companies in this sector reveals specific contributions to these global goals.

Corporate Profiles and SDG Alignment

1. Waste Management, Inc. (WM)

   Waste Management, Inc. delivers comprehensive environmental solutions across the United States and Canada, directly supporting key sustainability objectives.

   • SDG 11 & SDG 12: The company’s core services include the collection and transportation of waste and recyclable materials from residential, commercial, and industrial customers to transfer stations, material recovery facilities (MRFs), or disposal sites. This infrastructure is fundamental to achieving Target 11.6 (reduce the environmental impact of cities through waste management) and Target 12.5 (substantially reduce waste generation through recycling).
   • SDG 7 & SDG 13: Through the operation of landfill facilities, the company captures landfill gas and converts it into a renewable energy source. This practice contributes to Target 7.2 (increase the share of renewable energy) and mitigates greenhouse gas emissions, aligning with SDG 13 (Climate Action).

2. GFL Environmental Inc. (GFL)

   GFL Environmental Inc. provides a range of services in North America focused on non-hazardous solid waste management and environmental solutions.

   • SDG 11 & SDG 12: The company offers collection, transportation, transfer, recycling, and disposal services for diverse customer bases. These activities are central to building sustainable municipal waste systems (Target 11.6) and promoting a circular economy through recycling (Target 12.5).
   • SDG 6: Its liquid waste management and soil remediation services play a crucial role in preventing pollution and restoring contaminated sites, contributing to the objectives of SDG 6 (Clean Water and Sanitation).

3. Custom Truck One Source, Inc. (CTOS)

   Custom Truck One Source, Inc. functions as a key enabler for industries building and maintaining critical infrastructure, including waste management.

   • SDG 9 & SDG 11: By providing specialty equipment to the waste management sector, the company indirectly supports the development of resilient infrastructure (SDG 9) required for effective urban waste management systems (SDG 11). Its services also extend to other essential sectors like utilities and telecommunications, further reinforcing infrastructure goals.

4. Concrete Pumping Holdings, Inc. (BBCP)

   Concrete Pumping Holdings, Inc. contributes to sustainable practices in the construction industry through its specialized waste management services.

   • SDG 12: Under its Eco-Pan brand, the company provides industrial cleanup and containment services. This directly addresses Target 12.5 by ensuring the responsible management and containment of construction waste, preventing environmental contamination.
   • SDG 11: These services help reduce the environmental footprint of construction projects within urban and industrial areas, aligning with the goal of making cities more sustainable (Target 11.6).

5. Avalon Holdings Corporation (AWX)

   Avalon Holdings Corporation offers specialized waste management services, including the handling of hazardous materials.

   • SDG 12: The company provides hazardous and nonhazardous waste disposal brokerage and management services. The proper management of hazardous waste is a critical component of Target 12.4 (achieve the environmentally sound management of chemicals and all wastes throughout their life cycle).
   • SDG 11: Through its captive landfill management and turnkey operational services for industrial and municipal clients, Avalon contributes to the safe and efficient management of waste, a cornerstone of sustainable urban development (Target 11.6).

Analysis of SDGs, Targets, and Indicators

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

The article, which focuses on companies providing waste management and environmental services, directly or indirectly connects to several Sustainable Development Goals (SDGs). The core business activities described—such as waste collection, recycling, disposal, and energy generation from waste—are central to achieving environmental sustainability.

• SDG 12: Responsible Consumption and Production

  This is the most directly relevant SDG, as the entire waste management industry is built around handling the byproducts of consumption and production. The article mentions services like recycling, processing, and disposal of various waste types, which are fundamental to sustainable waste management practices outlined in SDG 12.

• SDG 11: Sustainable Cities and Communities

  Waste management is a critical municipal service essential for creating clean, healthy, and sustainable urban environments. The companies discussed provide services to “residential, commercial, industrial, and municipal customers,” directly contributing to the environmental management of cities.

• SDG 7: Affordable and Clean Energy

  The article explicitly mentions that Waste Management, Inc. operates “landfill facilities that produce landfill gas used as renewable natural gas for generating electricity.” This practice directly contributes to increasing the share of renewable energy in the energy mix.

• SDG 6: Clean Water and Sanitation

  The mention of “liquid waste management” by GFL Environmental and “hazardous and nonhazardous waste disposal” by Avalon Holdings connects to the goal of protecting water resources from pollution and contamination, which is a key aspect of SDG 6.

• SDG 9: Industry, Innovation, and Infrastructure

  The waste management sector is a crucial part of a country’s environmental infrastructure. The article notes the industry has “capital-intensive infrastructure needs.” The services provided, such as operating material recovery facilities and waste-to-energy plants, represent the kind of sustainable infrastructure and industrial processes that SDG 9 aims to promote.

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, several specific SDG targets can be identified:

1. Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.

   The article’s description of waste management companies’ services includes “recycling” and operating “material recovery facility (MRF).” These activities are central to achieving this target by diverting waste from landfills and reintroducing materials into the production cycle.

2. Target 12.4: By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle… and significantly reduce their release to air, water and soil…

   Companies like GFL Environmental, which offers “soil remediation services,” and Avalon Holdings, which provides “hazardous and nonhazardous waste disposal brokerage and management services,” are directly engaged in the environmentally sound management of waste to prevent environmental contamination.

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.

   The core business of all the featured companies is to “collect, transport, process, recycle and dispose of municipal, industrial and hazardous waste.” This is the primary mechanism through which cities manage their environmental impact, making this target highly relevant.

4. Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.

   The article provides a specific example of this target in action by stating that Waste Management, Inc. uses “landfill gas… for generating electricity.” This is a form of renewable energy generation that contributes to a cleaner energy mix.

5. Target 6.3: By 2030, improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials…

   The “liquid waste management” services offered by GFL Environmental and the “industrial cleanup and containment services” provided by Concrete Pumping Holdings are directly aimed at preventing water pollution by properly managing liquid and hazardous waste streams.

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 mention official SDG indicators, as its focus is financial. However, the business activities described imply several metrics that align with official indicators and could be used to measure progress:

• Implied Indicator for Target 12.5: National recycling rate (aligns with Indicator 12.5.1).

  The mention of “recycling” and “material recovery facility (MRF)” implies that the volume or percentage of waste that these companies recycle is a key performance metric. This directly corresponds to the national recycling rate.

• Implied Indicator for Target 11.6: Proportion of municipal solid waste collected and managed in controlled facilities (aligns with Indicator 11.6.1).

  The services described—collecting, transporting, and processing waste in facilities like transfer stations, MRFs, and landfills—are the very definition of managing waste in controlled facilities. The amount of municipal waste handled by these companies would be a measure of this indicator.

• Implied Indicator for Target 7.2: Amount of electricity generated from renewable sources (aligns with Indicator 7.2.1).

  The article’s statement that Waste Management, Inc. uses landfill gas for “generating electricity” implies that the quantity of energy (e.g., in megawatt-hours) produced from this renewable source is a measurable outcome of their operations.

• Implied Indicator for Target 12.4: Proportion of hazardous waste treated (aligns with Indicator 12.4.2).

  Avalon Holdings’ business in “hazardous and nonhazardous waste disposal brokerage and management services” implies that a key metric for the company is the volume and type of hazardous waste it manages and treats safely, which is a direct measure of progress for this target.

4. Table of SDGs, Targets, and Indicators

Source: marketbeat.com