In recent years, the business world has witnessed a surge in environmental and sustainability regulations, such as the European Union’s Corporate Sustainability Reporting Directive (CSRD) and the United States’ Securities and Exchange Commission (SEC) climate disclosure rules. Companies are realizing that incorporating sustainability into their overall business strategy is becoming imperative and that waste governance is a crucial part of the overall plan.
A company’s waste governance efforts are integral in the broader context of sustainability and climate action. A waste governance strategy refers to a structured and systematic approach designed to manage and oversee all aspects of waste management within an organization.
Waste governance practices, particularly those that focus on reducing waste generation and increasing material recyclability, can have a significant impact on greenhouse gas (GHG) reduction and pollution prevention. They can also result in cost savings, conservation of natural resources, and potential new revenue streams, while also ensuring legal compliance in jurisdictions that have regulations and targets related to waste management.
Customers and other stakeholders increasingly prioritize sustainability and expect companies to manage their wastes responsibly in their own operations, as well as incorporate sustainability considerations into the entire lifecycle of the products they manufacture and distribute. Whether an organization has already taken steps to reduce waste or is ready to set new ambitions, here are four considerations for developing a more resilient enterprise waste governance strategy.
Start with the End in Mind: Sustainable Design Considerations
The Ellen MacArthur Foundation estimates that 80% of a product’s environmental impact is influenced by decisions made during its design phase. This first concept selection phase presents the greatest opportunity to optimize product design for sustainability, including keeping it in the value chain as long as possible and out of landfills.
In electronic device manufacturing for example, this process starts with concept selection, where all potential concepts are reviewed and optimized into one selected design. This is where data-driven decisions about how to optimize the design for sustainability can be made. Take assembly, for example. Incorporating sustainability into this process means not only “design for assembly” but “design for disassembly.” The sustainable approach is to understand the post-use economy for the product and design it so that materials can be easily separated and recovered for the chosen recycling method, thus avoiding the generation of waste.
If sustainability considerations are not conducted at this earliest stage of product design and concept selection, then the chance to consider it at later stages is greatly reduced, becomes more complicated and can add considerable time and cost to the development lifecycle.
Following implementation of these optimizations, the concept is advanced to the detailed simulation stage where process simulations, along with final material selection, are conducted prior to the design being released for prototype manufacturing. Material selection consists of determining sustainable materials for the product and responsibly sourcing them while taking price, quality, supply and technical performance into account.
Strategic Alliances: Choosing the Right Partner in the Right Place
Supply chain partners play a critical role in helping companies meet their waste governance goals. Thus, developing a supplier evaluation framework that involves evaluating suppliers on both cost and their sustainability practices is a valuable step to consider.
Executing this research entails gathering information on suppliers’ sustainability policies, practices and compliance history. With this information, preference would be given, where feasible, to suppliers with practices in place for minimizing waste, reducing energy consumption, utilizing sustainable materials, and managing their carbon footprint. It is also important that the selected suppliers have established a good track record for providing high-quality materials or products — reducing the frequency of replacements and repairs and minimizing waste associated with defective or short-lived items.
Waste Not, Want Not: Turning Waste into Value
Integrating a circular economy approach with external partners can have a significant impact on reducing wastes, lessening supply chain burdens and reliance on virgin materials. This not only helps prevent pollution, but also creates the potential for new revenue streams.
By choosing partners with expertise that aligns with their waste management ambitions, companies can make more tangible progress toward their enterprise sustainability goals.
Addressing Waste in Manufacturing Facilities
In addition to considerations around sustainable product lifecycles and supply chain choices, companies also need to look inward at their operations for opportunities to maximize efficiency and cost savings as part of their overarching waste governance strategy.
In manufacturing facilities, having an effective data collection and tracking system is an essential first step. This allows companies to develop a baseline against which improvements can be measured and reduction goals set for waste and associated GHG emissions.
A facility waste improvement strategy would begin with lifecycle mapping, which identifies all existing waste streams across the entire site (including the non-manufacturing areas). Waste materials should be categorized by type — such as plastics (by plastic type), electronics, metals, hazardous and food — then properly segregated, stored and labeled. This information can be used to calculate how much waste is generated and what type, allowing the site to focus its initial improvement efforts on the areas that will have the greatest impact.
Next, selecting a properly vetted, approved waste vendor can significantly help a facility reduce the amount of waste it sends to landfill, if the proper infrastructure exists in the general region. They have the knowledge and expertise in waste diversion and recycling opportunities and have familiarity with best practices for separating and processing different types of waste. These vendors may have a range of advanced sorting technologies, techniques, and services for separating recyclable and compostable materials from general waste, maximizing opportunities for landfill diversion.
Improving diversion rates can also help companies mitigate the rising costs associated with landfilling, which are driven by more stringent regulations and limited landfill capacity. Importantly, approved vendors should be well-versed in local, state, and federal regulations regarding waste management to help ensure continuous legal compliance, thus avoiding potentially significant fines and litigation.
The Bottom Line is the Bottom Line
Having a robust waste governance strategy in place that incorporates sustainable practices across the product value chain and company operations offers multiple advantages to a business. These include protecting and improving the bottom line, reducing environmental impacts, satisfying stakeholder expectations and staying ahead of legal compliance obligations.
This strategic approach helps companies stay competitive, resilient and responsible in today’s increasingly eco-conscious market.
