Putting the ‘W’ in ESG – the case for a rethink on reporting of waste

10th May 2023

The Environmental factors (E) in ESG are dominated by measures of carbon emissions, energy and NetZero, but less attention is paid to materials use and waste. This, in turn, is reflected in the relatively poor quality of data and associated metrics on waste and recycling referenced in corporate sustainability reports.

This is a problem, particularly given the higher costs for raw materials and energy, plus greater regulatory oversight on waste. This data deficiency also deflects from the significant level of carbon emissions linked to the way material is handled and used.

As pressure increases on companies to improve the quality and consistency of ESG data and for financial institutions to move beyond superficial sustainability engagement, it is time for a sharper focus on waste management and recycling.

If companies are to publish higher quality, validated and comparable data on their waste and recycling performance, they need to gain more insights into the processes and commercial models associated with the production, movement and processing of the material. Only then can financial markets generate meaningful, comparable metrics and the companies generate actionable insights that can drive greater cost and resource efficiencies, validate compliance and increase corporate value.

Download our position paper