‘The Most Sustainable Industry On Planet Earth’
Waste Management, the largest integrated waste collection, transportation, and storage company in the United States, said that it will invest US$200 million in recycling infrastructure in 2022. Between 2018 and 2021, Waste Management invested an estimated US$500 million in recycling infrastructure. Notable investments include new materials recovery facilities (MRFs) in Chicago; Salt Lake City; Raleigh, North Carolina; and Sun Valley, California. A portion of the company’s new investment will go toward upgrading its residential recycling facilities with new technology. By 2023, Waste Management expects 95% of these facilities will have upgraded technology.
“As consumer-packaged goods companies continue to set aggressive 2025 and 2030 goals for recycled content — in many cases approaching 50% — solutions need to scale, especially related to plastics, as plastic capture must grow five times to meet these targets,” said Tara Hemmer, senior vice president and chief sustainability officer at Waste Management. “We are making great progress unlocking this supply, increasing overall recycled plastic volume by 25% since 2019 and this will continue to expand. These enhancements will ensure recyclables are efficiently sorted and sold to high-quality end markets, meeting the strong demand for recycled content material in new products.”
Waste Management also expects to upgrade much of its remaining recycling facility network. MRFs in Houston; Cleveland; Woodinville, Washington; and Elkridge, Maryland, are being fully renovated, and 29 existing MRFs have already been or are currently being outfitted with enhanced technology as well as supplemental capacity.
Sustainable Waste
CEO Jim Fish discussed the company’s ESG efforts at the WasteExpo 2021 conference, including the potential to reuse waste in various industries once it has been collected.
The topic at hand isn’t glamorous by any means, but it’s incredibly important. Waste is something none of us really want to think about but it’s a big detriment to the environment. More than just recycling, the proper management of landfills, such as reducing methane leaks, can have far-reaching impacts on cutting emissions. In April 2021, Bloomberg did a piece on a leaky landfill in Bangladesh that was emitting about 8818 lb. (4000 kg) of methane per hour, which is the equivalent of running 190,000 traditional cars. In June, PBS published an article about satellites helping to measure methane leaks from pipelines, oil fields, landfills, and farms. Methane leaks are common in outdated infrastructure or facilities that were built out of haste. It’s understandable that Bangladesh, with its rapidly rising population, would build infrastructure out of pure necessity rather than with environmental protection in mind.
Fish argued that the North American waste industry gets underappreciated in terms of its ESG impact. “I would argue that this industry is the most sustainable industry on planet Earth,” said Fish. “This industry, in Canada, the United States, in North America, I would argue has done a better job of keeping us clean than any other industry.”
The Post Collection Side
Constructing environmentally conscious landfills is one thing, but what happens to the waste once it’s collected? The post collection piece of the story is where you and I, and companies like Waste Management, can do much better. Fish noted that upwards of 90% of the plastic that Waste Management collects gets put in a landfill. Granted, not all of it can be recycled, but still, there’s a lot of recyclable plastic that goes straight into the ground instead of being reused.
Waste Management’s sustainability efforts include expanding its recycling program, integrating compressed natural gas (CNG) trucking fleets, and trying to create a business out of using waste. However, Fish was upfront about the fact that Waste Management and its partners can only invest in sustainability if the customer is willing to pay for it. If the process adds too much cost and raises the price to a point where demand decreases, then margins would compress, leading to less profit to the detriment of shareholders.
The Difference Between Improving Mechanical And Chemical Processes
Fish mentioned that Waste Managing gets approached by chemical companies like LyondellBasell and Dow Chemical all the time to try and use sustainable feedstocks in their chemical processes. It’s a good idea, but Fish indicated he thinks that chemical processes are going to be harder to source reused plastics than a mechanical process.
“There is a difference between a chemical process and a mechanical process and one of the big differences that tends to get overlooked by those guys, those guys being companies like ExxonMobil, is they need a very clean stream to do a pyrolysis process for example,” said Fish. “I’d much rather do a mechanical process. First off, the plant is a lot less expensive than building a chemical plant, and secondly, I don’t have to have a clean 99% pure plastics product coming in, because that then implies I’m going to have a to do a lot of sorting. I can do it, but then I’m going to pass that through to you as the consumer. If you’re PepsiCo, and you want to use recycled material in your bottles, then suddenly the cost of recycled product is three times the cost of virgin, you’re going to say, ‘look I want to be sustainable but I’m not going to charge my shareholders 3X.’”
Recycling And RNG Headline Waste Management’s ESG Focus
Waste Management just promoted Tara Hemmer to a new role as Senior Vice President and Chief Sustainability Officer to help lead a team devoted to sustainability. In addition to recycling investments, Hemmer is leading Waste Management’s investments in renewable natural gas (RNG).
Waste Management is playing a major role in Archaea Energy’s (Archaea) Assai Project (Assai). Pipeline-quality RNG production and commercial operations commenced at Assai on December 30, 2021. Assai has natural gas production of 12,000 MMBtu/d, an inlet capacity of 22,500 SCFM (637 m3/min), is expected to reduce carbon dioxide (CO2) emissions by more than 220,000 tons (200,000 tonnes) per year, and reduce most air pollutants by more than 90%. According to Archaea, Assai is now the highest capacity operational RNG facility in the world.
Assai combines landfill gas flows from the Keystone Sanitary Landfill and the Waste Management Alliance Landfill. At 714 acres (289 ha), the Keystone Landfill is one of the largest landfills in the United States. In June 2021, the Department of Environmental Protection (DEP) approved a long-awaited expansion to the Keystone landfill. The permit will allow Keystone to expand on a 435-acre (176-ha) space within its existing permitted area and increase its disposal capacity by 3915 scf (111 m3), a permit that Keystone waited roughly seven years for.
RNG can be produced from the methane stored in landfills. Over the last 20 years, 150 landfill gas-to-energy plants have helped convert landfill gas to electricity and transportation fuel. Waste Management now plans to launch between 16 and 20 new RNG facilities across the country.
Environmental Justice
At WasteExpo 2021, Fish also discussed environmental justice, which is a topic that sometimes gets overlooked in the ESG conversation. For Waste Management, environmental justice would mean building landfills away from lower income neighborhoods, being cognizant about the location of hauling companies, and thinking more about how the entire business is operating in terms of not just the climate but the people its impacting.
Aside from the location of physical assets, Fish sees potential to improve the human component of environmental justice. One way is to create jobs in lower income neighborhoods and incentivize high school graduation by making a diploma a requirement for employment. Waste Management is headquartered in Houston, which has generally poor graduation rates from high schools in lower income neighborhoods. Landing a decent paying job outside of high school is a step toward upward mobility that is becoming easier in today’s remote work environment. Fortune 100 companies like Waste Management can now organize their workforce in such a way that is freer flowing and less dependent on massive hubs. This level of flexibility can potentially create better employment opportunities. “It’s an avenue out of the inner city and today their avenues are limited,” said Fish. “I personally think that if you think of the people aspect of environmental justice, that’s a huge people aspect. It’s not just assets.”
