Waste Management Stocks To Watch Now – October 22nd – MarketBeat

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

Sector-Wide Impact on Global Sustainability

The waste management sector provides essential services that are integral to achieving several United Nations Sustainable Development Goals (SDGs). Companies operating in this industry contribute directly to building sustainable infrastructure and promoting environmental health. Their core functions of waste collection, processing, recycling, and disposal are fundamental to global sustainability efforts.

• SDG 11 (Sustainable Cities and Communities): By managing municipal and industrial waste, these companies help reduce the adverse environmental impact of cities, creating cleaner and healthier urban environments.
• SDG 12 (Responsible Consumption and Production): The sector is central to promoting circular economies through recycling and material recovery, which substantially reduces waste generation.
• SDG 7 (Affordable and Clean Energy): Innovative practices, such as converting landfill gas into renewable energy, directly support the transition to cleaner energy sources.
• SDG 13 (Climate Action): Proper waste management, including the capture of methane from landfills, mitigates the release of potent greenhouse gases into the atmosphere.

Corporate Contributions to Sustainable Development

An evaluation of key companies in the waste management and related environmental services sector highlights their specific contributions to the SDG framework. The following five companies demonstrate diverse operational models that align with global sustainability targets.

1. Waste Management, Inc. (WM)
2. GFL Environmental Inc. (GFL)
3. Custom Truck One Source, Inc. (CTOS)
4. Concrete Pumping Holdings, Inc. (BBCP)
5. Avalon Holdings Corporation (AWX)

Waste Management, Inc. (WM)

Waste Management, Inc. provides comprehensive environmental solutions across the United States and Canada. Its operations encompass collection, transfer, recycling, and disposal services, with a significant focus on resource recovery and renewable energy production.

• SDG 11 & SDG 12: The company’s core services of waste collection and operation of material recovery facilities (MRFs) are fundamental to sustainable urban waste management and promoting responsible production and consumption patterns.
• SDG 7 & SDG 13: By developing and operating landfill facilities that capture landfill gas to produce renewable natural gas, WM actively contributes to affordable and clean energy goals while taking direct climate action by mitigating greenhouse gas emissions.

GFL Environmental Inc. (GFL)

GFL Environmental Inc. delivers a range of services including non-hazardous solid waste management, liquid waste management, and soil remediation. The company serves municipal, residential, commercial, and industrial customers in Canada and the United States.

• SDG 11 & SDG 12: GFL’s integrated services in collection, transportation, recycling, and disposal support the development of sustainable cities and the reduction of waste generation.
• SDG 6 (Clean Water and Sanitation): Through its liquid waste management and soil remediation services, GFL plays a crucial role in preventing water contamination and restoring land, directly supporting the goal of clean water and sanitation for all.

Custom Truck One Source, Inc. (CTOS)

Custom Truck One Source, Inc. provides specialty equipment to various infrastructure-related industries, including waste management. While not a direct service provider, it is a critical enabler for the sector.

• SDG 9 (Industry, Innovation, and Infrastructure): By supplying the specialized vehicles and equipment necessary for waste collection and transport, CTOS supports the robust infrastructure required for the waste management industry to function effectively and contribute to other sustainability goals.

Concrete Pumping Holdings, Inc. (BBCP)

Concrete Pumping Holdings, Inc. offers concrete pumping services and, through its Eco-Pan brand, provides industrial cleanup and containment services. This latter function is directly relevant to sustainable industrial practices.

• SDG 12 (Responsible Consumption and Production): The company’s industrial cleanup and containment services are vital for managing waste within the construction industry, preventing pollution and promoting responsible management of industrial byproducts.
• SDG 11 (Sustainable Cities and Communities): By ensuring proper waste containment on construction sites, the company contributes to more sustainable building and infrastructure development in urban areas.

Avalon Holdings Corporation (AWX)

Avalon Holdings Corporation offers specialized waste management services, including the brokerage and management of hazardous and nonhazardous waste disposal and captive landfill management.

• SDG 12 (Responsible Consumption and Production): Avalon’s expertise in managing both hazardous and nonhazardous waste is critical for industries seeking to minimize their environmental footprint and adhere to principles of responsible production.
• SDG 3 (Good Health and Well-being) & SDG 6 (Clean Water and Sanitation): The safe and effective disposal of hazardous materials is essential for preventing environmental contamination that poses risks to human health and water resources.

Analysis of Sustainable Development Goals in the Article

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

The article, which focuses on companies in the waste management sector, directly or indirectly addresses several Sustainable Development Goals (SDGs). The core business of these companies—collecting, processing, recycling, and disposing of waste—is central to environmental sustainability and urban development.

• SDG 11: Sustainable Cities and Communities: The services provided by companies like Waste Management, Inc. and GFL Environmental are fundamental to urban infrastructure. They offer “environmental solutions to residential, commercial, industrial, and municipal customers,” which is essential for creating clean, safe, and sustainable urban environments.
• SDG 12: Responsible Consumption and Production: This goal aims to ensure sustainable consumption and production patterns. The article highlights that these companies “collect, transport, process, recycle and dispose of” waste. The act of recycling and managing “recyclable materials” at a “material recovery facility (MRF)” directly contributes to sustainable resource management and waste reduction.
• SDG 7: Affordable and Clean Energy: The article explicitly connects waste management to energy production. It states that Waste Management, Inc. operates “landfill facilities that produce landfill gas used as renewable natural gas for generating electricity.” This practice contributes to increasing the share of renewable energy in the energy mix.
• SDG 3: Good Health and Well-being: Proper management of hazardous waste is crucial for public health. The article mentions that waste management companies handle “hazardous waste” and Avalon Holdings Corporation provides “hazardous and nonhazardous waste disposal brokerage and management services.” These services help prevent pollution and contamination that can harm human health.
• SDG 6: Clean Water and Sanitation: The management of liquid waste is a key component of this goal. GFL Environmental Inc. is described as offering “liquid waste management” and “soil remediation services,” which are vital for protecting water resources from pollution and ensuring safe sanitation.

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

Based on the services described in the article, several specific SDG targets can be identified:

1. 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 featured, such as Waste Management, Inc., GFL Environmental, and Avalon Holdings, provide essential “municipal” waste management services. Their operations in collecting, transporting, and disposing of waste are a direct implementation of this target.
2. Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.
   • Explanation: The article’s description of the industry includes processing and recycling waste. Waste Management, Inc. is mentioned as transporting “recyclable materials” to a “material recovery facility (MRF),” which is a core activity for achieving this target.
3. Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
   • Explanation: The article provides a clear example of this target in action by stating that Waste Management, Inc. uses landfill gas “as renewable natural gas for generating electricity.” This directly contributes to the share of renewable energy.
4. Target 3.9: By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination.
   • Explanation: The mention of companies providing “hazardous waste” disposal services (Avalon) and “soil remediation services” (GFL Environmental) directly relates to mitigating the health risks associated with pollution and hazardous materials.
5. Target 6.3: By 2030, improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater and substantially increasing recycling and safe reuse globally.
   • Explanation: GFL Environmental’s “liquid waste management” services are integral to preventing water pollution and ensuring that wastewater is handled properly, thus contributing to 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 provide specific quantitative data for SDG indicators. However, it implies several qualitative and operational indicators that could be used to measure progress:

• Indicator for Targets 11.6 and 12.5: The existence and operation of waste management infrastructure are implied indicators. The article mentions “material recovery facility (MRF),” “transfer stations,” and “landfill facilities.” The volume of waste processed, the percentage of waste recycled, and the number of municipalities served by these companies could serve as quantifiable metrics.
  • Implied Indicator: Volume of municipal and industrial waste collected, recycled, and safely disposed of.
• Indicator for Target 7.2: The article’s specific mention of converting landfill gas into energy implies a direct indicator.
  • Implied Indicator: Amount of renewable energy (in kWh or MWh) generated from waste and landfill gas.
• Indicator for Targets 3.9 and 6.3: The provision of specialized services for hazardous materials points to relevant indicators.
  • Implied Indicator: Volume of hazardous waste managed and treated; volume of liquid waste processed; area of land undergoing soil remediation.

4. Summary Table of SDGs, Targets, and Indicators

Source: marketbeat.com