Every business produces waste. So if your ESG (Environmental, Social, and Governance) strategy does not include smart waste management, you are missing a big opportunity. By incorporating waste reduction strategies into your ESG goals, you will be impacting all three aspects of ESG. In addition, you will be helping to future proof your business, since ESG reporting frameworks are designed to help businesses address challenges and mitigate risk.
Here are 3 ways to align waste management and ESG goals to help your business reduce waste, improve ESG ratings and long term viability.
1) Align Waste Management with the “E” Environmental Pillar of ESG
Waste and the environment are closely tied. By reducing waste and moving towards Zero Waste and other circular solutions with improved recycling and resource recovery efforts, businesses will help reduce greenhouse gas emissions, air and water pollution, and the depletion of natural resources. With a growing number of stakeholders and the public demanding climate action, this is a no brainer.
Action: Start by Conducting a Waste Audit
The first step to aligning your ESG and waste management goals is to conduct a waste audit to understand your waste generation patterns. This waste data is crucial to help you identify patterns and inefficiencies, and set benchmarks. Use the data to design the waste reduction methods that will be the most effective for your business.
What does this look like in reality? Reducing waste could be as simple as installing a water cooler if your waste audit uncovers large amounts of plastic bottles in your waste stream, or buying in bulk to reduce packaging. Learn how to start to go Zero Waste in 3 steps.
2) Reduce Waste and Make a Social Impact on the “S” of ESG
Make a social impact with your waste management strategy. Better supply chain management that generates less waste could have an impact on populations near and far by creating a healthier environment for all, especially for vulnerable populations who often live near waste facilities and sources of pollution. In addition, embracing waste as a valuable asset can keep waste from the landfill and generate new revenue streams, create jobs, and drive innovation.
Action: Start by Engaging and Educating Employees, Tenants and Stakeholders
Your employees, tenants, and other stakeholders directly affect waste generation and the success of your overall waste management strategies and goals. Businesses should encourage employee involvement and provide training and education on waste reduction best practices. Engaging stakeholders, including vendor suppliers, to collaborate on waste reduction efforts can raise awareness, expand your impact, and foster a culture of sustainability that will also enhance your reputation.
One easy way to make an immediate impact is to encourage stakeholders to pay attention to food waste. A business that decides to reduce food waste through food donations, for example, is redirecting food to communities in need, making a positive social impact. Read a case study.
3) Strengthen Governance with Better Waste Management to Impact the “G” of ESG
Doing good is good for business. Smart waste management strategies often lead to improved governance through operational efficiency and cost savings for businesses, especially by lowering waste-related costs (such as disposal fees). This helps businesses enhance productivity, reduce resource dependence, and strengthen long-term financial sustainability. This will give your business a competitive edge
Action: Start by Setting Clear Waste Management Goals for Your Waste Programs
Establish clear waste reduction goals that align with your organization’s overall ESG objectives. This must involve a systematic approach and participation from all levels of the organization to implement smart waste management solutions at every opportunity, from waste design and the implementation of your waste management program to the optimization of your waste collection service and schedules and ongoing waste compliance. In addition, explore how certifications such as LEED and TRUE Zero Waste can fit into your waste management and ESG goals.
Data should be at the heart of your waste reduction efforts. Use data from waste assessments (including waste audits) to set goals and benchmarks that are measurable. Then track your progress for accountability and transparency, and don’t forget to communicate your success to engage your stakeholders, and provide proper waste education and training. Make sure to address both upstream and downstream waste. Collaborate with your vendors to help reduce the impact of your supply chain, and work with waste experts to find innovative solutions for your waste, whether they are high-tech AI-drive waste solutions or low-tech waste sorting.
Have questions? Contact your Great Forest representative at info@greatforest.com.
Great Forest is a trusted partner of The ESG Transition company.
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