Top Waste Management Stocks To Research – November 28th – MarketBeat

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

The waste management sector is integral to achieving global sustainability objectives. Companies involved in the collection, transport, treatment, recycling, and disposal of waste provide essential services that directly align with several United Nations Sustainable Development Goals (SDGs). The sector’s stability is linked to its fundamental role in developing sustainable infrastructure and promoting environmental health. This report analyzes the operations of three prominent companies—Waste Management, GFL Environmental, and Custom Truck One Source—and their contributions to the SDG framework.

Corporate Operations and SDG Alignment

Waste Management, Inc. (WM)

As a leading provider of environmental solutions in the United States and Canada, Waste Management, Inc.’s core operations are directly linked to key sustainability targets.

• Core Services: The company offers waste collection, transfer, and disposal services for residential, commercial, industrial, and municipal customers.
• Infrastructure and Innovation: WM owns and operates a network of transfer stations, material recovery facilities (MRFs) for recycling, and landfill facilities.
• SDG Contributions:
  1. SDG 11 (Sustainable Cities and Communities): By managing municipal waste streams, WM helps reduce the adverse per capita environmental impact of cities, a key component of Target 11.6.
  2. SDG 12 (Responsible Consumption and Production): Through its MRFs, the company promotes recycling, which is critical to substantially reducing waste generation as outlined in Target 12.5.
  3. SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action): WM develops landfill-gas-to-energy projects, converting methane into renewable natural gas. This practice contributes to increasing the share of renewable energy (Target 7.2) and mitigating climate change by reducing greenhouse gas emissions.

GFL Environmental Inc. (GFL)

GFL Environmental Inc. provides non-hazardous solid waste management and other environmental services across Canada and the United States, addressing a broad spectrum of sustainability challenges.

• Service Portfolio: The company’s operations include solid waste management, liquid waste management, and soil remediation.
• SDG Contributions:
  1. SDG 11 and SDG 12: Its comprehensive solid waste services, including collection, recycling, and disposal, support the creation of sustainable urban areas and promote circular economy principles.
  2. SDG 6 (Clean Water and Sanitation): Liquid waste management services are vital for protecting water resources by preventing pollution and ensuring the safe treatment of wastewater, aligning with Target 6.3.
  3. SDG 15 (Life on Land): Through soil remediation services, GFL contributes to the restoration of degraded land and the protection of terrestrial ecosystems.

Custom Truck One Source, Inc. (CTOS)

Custom Truck One Source, Inc. functions as a key enabler for the waste management sector by providing essential specialty equipment.

• Business Focus: The company provides equipment rental and sales to infrastructure-related industries, including waste management, electric utilities, and telecommunications.
• SDG Contributions:
  1. SDG 9 (Industry, Innovation, and Infrastructure): By supplying the specialized vehicles and machinery necessary for waste collection and transport, CTOS supports the development of resilient and sustainable infrastructure. This role is crucial for the waste management industry to effectively contribute to other SDGs.
  2. Indirect SDG Support: The company’s services to the electric utility and rail industries also bolster the infrastructure necessary for achieving SDG 7 (Affordable and Clean Energy) and SDG 11 (Sustainable Cities and Communities).

Analysis of the Article in Relation to Sustainable Development Goals (SDGs)

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

The article discusses the waste management industry, which is directly and indirectly connected to several Sustainable Development Goals. The core activities of the companies mentioned—collecting, recycling, treating waste, and providing environmental services—are central to achieving a sustainable future.

• SDG 7: Affordable and Clean Energy: The article mentions that Waste Management, Inc. operates landfill facilities that “produce landfill gas used as renewable natural gas for generating electricity.” This directly contributes to increasing the share of renewable energy.
• SDG 9: Industry, Innovation and Infrastructure: The waste management sector is a critical part of a country’s infrastructure. Companies like Custom Truck One Source, which provide specialty equipment to the waste management industry, support the development of resilient and sustainable infrastructure. The sector’s focus on recycling and remediation represents an upgrade of industrial processes toward sustainability.
• SDG 11: Sustainable Cities and Communities: The primary function of the companies described is the management of “municipal, industrial and hazardous waste.” This service is essential for reducing the adverse environmental impact of cities and ensuring they are clean and safe.
• SDG 12: Responsible Consumption and Production: The article repeatedly highlights recycling as a key service. The entire waste management process, from collection to disposal and recycling, is fundamental to achieving sustainable management and efficient use of natural resources and reducing waste generation.
• SDG 15: Life on Land: The provision of “soil remediation services” by GFL Environmental directly addresses the restoration of degraded land. Proper management of hazardous waste and landfills, as performed by these companies, is crucial for preventing soil and water pollution, thereby protecting terrestrial ecosystems.

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 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
   • Explanation: The article explicitly states that Waste Management, Inc. “owns, develops, and operates landfill facilities that produce landfill gas used as renewable natural gas for generating electricity.” This is a direct contribution to 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: The waste management industry, as described, is part of the essential infrastructure being upgraded. The mention of “ESG-driven demand for recycling and remediation” points to the adoption of more environmentally sound processes within this industry.
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 core business of Waste Management and GFL Environmental is to “collect, transport, treat, recycle and dispose of municipal, industrial and hazardous waste,” which directly addresses the waste management component of this target.
4. Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.
   • Explanation: The article identifies recycling as a key service offered by these companies. Waste Management, Inc. operates “material recovery facility (MRF)” and GFL Environmental also offers recycling services, which are central to achieving this target.
5. Target 15.3: By 2030, combat desertification, restore degraded land and soil, including land affected by desertification, drought and floods, and strive to achieve a land degradation-neutral world.
   • Explanation: GFL Environmental is mentioned as offering “soil remediation services,” which is a direct action toward restoring degraded land and soil, aligning 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?

The article, being a financial analysis, does not mention official SDG indicators. However, the description of the companies’ operations implies several metrics that could be used to measure progress:

• For Target 7.2: An implied indicator is the amount of renewable energy generated. The article’s mention of Waste Management, Inc. using “landfill gas… for generating electricity” suggests that the quantity of electricity (in kWh or MWh) produced from this source would be a direct measure of progress.
• For Target 11.6 and 12.5: The volume of waste managed is a key implied indicator. Progress could be measured by:
  • The total tonnage of municipal and industrial waste collected and managed.
  • The proportion of collected waste that is diverted to recycling through “material recovery facility (MRF)” operations.
• For Target 15.3: The provision of “soil remediation services” by GFL Environmental implies an indicator related to land restoration. Progress could be measured by the total area of land that has undergone remediation.
• General Indicator: The article notes that the sector has “ESG-driven demand for recycling and remediation.” This implies that the Environmental, Social, and Governance (ESG) scores and reports of these companies could serve as a proxy indicator for their overall contribution to sustainability and related SDG targets.

4. Summary Table of SDGs, Targets, and Indicators

Source: marketbeat.com