Text by Raul Pop, Program Director, ECOTECA Association

Waste, often seen as a nuisance or possibly a source of small additional income for the companies and institutions that generate it, can become a valuable resource if managed correctly. And when we say “correct” we look at the subject both from the perspective of legal restrictions and from the perspective of recovering the value of the materials we throw away.

Beyond the immediate perspective – expressed in terms of money or pollution -, the relevance of waste also spills over into ESG performance – an acronym we hear about more and more often. That is, it affects environmental (E, environment in English), social (S) or governance (G) indicators.

But until we work with numbers and reports, there is an essential reality: to measure real impact, we need accurate data. What does this actually mean? It’s simple. Without accurate data on the amounts of waste generated, how it is treated and, most importantly, how much of it can be recycled, we cannot have a complete picture of our status or progress. Instead of getting bogged down in incomplete reports, difficult-to-justify perceptions or vague sustainability promises, clear data helps us set directions and make smart decisions.

ESG and waste management

Waste management has always been a fundamental pillar in the sustainability strategy of companies (even before sustainability itself was a fashionable topic). From recycling readiness to waste reduction, implementing effective work practices can significantly lessen a company’s environmental impact. While ESG is a method of assessing environmental commitment, social responsibility and governance in a holistic but so far relatively ambiguous way, waste management falls directly into the environmental component and even in an obvious, visible and often disturbing way . These practices not only reduce the carbon footprint and operational optimizations and cost savings, but also contribute to the direct comfort of employees, compliance with already mature legislation and even the immediate image of the organization.

From the moment they integrate waste management in the application of the ESG strategy, companies benefit, in addition to an improved image and investor confidence, from a visible and easily measurable “work front” to improve their “E” indicators. Transparent reporting on the volume of waste generated and recycling rates clearly demonstrates commitment to sustainability. Investors, who are increasingly concerned about sustainable investments, consider this information essential for decision-making.

The importance of data in waste management and ESG reporting

Accurate and reliable data is fundamental to ensuring transparency and measuring a company’s progress against environmental goals. In waste management, data collection allows companies to track the quantities generated, the operational performance of their network of points of presence, the types of waste and the disposal or recycling methods; all this information is essential for ESG reporting and identifying opportunities for improvement. Collecting and analyzing waste data, waste tracking systems such as those based on IoT and sensors enable real-time monitoring of waste volumes and types, significantly improving data accuracy. In addition, analyzing this data helps companies identify opportunities to reduce waste, identify points where intervention is needed, and increase operational efficiency.

Challenges in ESG data collection

Despite their importance, many companies struggle to collect the data needed for ESG reporting. Traditionally, waste management has not been subject to strict data quality regulations, resulting in a lack of integrated data collection systems. Many companies depend on manual processes, which increases the risk of errors and makes continuous monitoring difficult. A viable solution is to automate data collection processes. Advanced technologies such as optical character recognition (OCR) or connecting sensors, scales or smart meters to centralized systems can speed up processes and improve accuracy. This enables companies to generate more accurate and actionable ESG reports.

The benefits of data in ESG reporting

Once companies implement advanced data collection and management systems, the benefits become apparent. The data allows clear, measurable and realistic waste reduction goals to be set, including individual responsibilities that can be monitored and improved. Moreover, any quality ESG reporting gives companies a chance to assess their performance and identify areas for improvement. For example, companies can identify major sources of waste that can be reduced through reuse or recycling, generating substantial savings. But, like any management tool, an ESG report must be assumed, clearly broken down into the specific internal processes of the organization and handed over for implementation to the relevant decision-makers within the organization, so that it does not remain a simple… composition.