{"id":11386,"date":"2016-11-04T12:51:25","date_gmt":"2016-11-04T16:51:25","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/waste-ing-our-planet-away\/"},"modified":"2016-11-04T12:51:25","modified_gmt":"2016-11-04T16:51:25","slug":"waste-ing-our-planet-away","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/waste-ing-our-planet-away\/","title":{"rendered":"\u201cWaste\u201d-ing our Planet Away"},"content":{"rendered":"

Climate Change and Waste <\/strong><\/p>\n

ADS is a solid waste management company that operates three distinct business lines: (a) collection: curbside collection services (b) landfills: transfer waste to landfills and recycling facilities and (c) recycling: process and sell recycled materials[1]<\/a>. \u00a0As the process diagram below indicates, each step in ADS\u2019 business model contributes to climate change through the emissions of greenhouse gases (\u201cGHG\u201d). \u00a0Each division\u2019s profitability and fundamental business model will be impacted by systemic changes that look to mitigate the impact of climate change.<\/p>\n

\"image002\"<\/a><\/p>\n

[2]<\/a><\/p>\n

Collection Services <\/u><\/p>\n

ADS generates revenue by collecting waste from the customer\u2019s location through the use of its collection trucks.\u00a0 The majority of ADS\u2019 trucks are diesel-fueled and so as they travel the city collecting waste the trucks emit Greenhouse gases[3]<\/a>.\u00a0 In August 2016, federal regulators issued a three phased new greenhouse gas standard for waste trucks to comply with by 2027[4]<\/a>.\u00a0 ADS\u2019s profitability and cash flow projections will be impacted as they look to comply with this new regulation.<\/p>\n

Landfill Background<\/u><\/p>\n

ADS also generates revenue from operating municipal solid waste (\u201cMSW\u201d) disposal landfills. Municipal solid waste disposal in landfills is the third largest contributor accounting for approximately 20% to the total methane emissions (methane emissions are 25 times as effective as CO2 at trapping heat in the atmosphere and account for 11% of all emissions)[5]<\/a>. American public behavior drives the amount of waste that is generated and deposited in landfills. The amount of MSW has been relatively constant since 2010 as public shifts habits towards increased recycling[6]<\/a>.<\/p>\n

\"msw-generation\"<\/a>\"recycle\"<\/a><\/p>\n

Landfill Regulation<\/u>
\nIn July 2016, the EPA issued new guidelines that regulate the amount of permittable methane emitted at landfills before the landfill is mandated to install a gas collection control system[7]<\/a>. This new regulation impacts ADS since they will need to outlay additional capital in order to comply as well as improve their controls in order to accurately forecast when they will hit their limit at each landfill. According to the EPA\u2019s Landfill Methane Outreach Program, \u201creducing methane emissions from municipal solid waste landfills is one of the best ways to achieve a near-term beneficial impact in mitigating global climate [8]<\/a>\u201d<\/p>\n

Consumer Demand for Recycling<\/u><\/p>\n

There has been a growing trend within the US about the importance of recycling.\u00a0 Many municipal governments are demanding waste management services to provide alternative waste collection methods, specifically recycling. However, increased public interest in recycling has caused many consumers to incorrectly recycle items.\u00a0 This has driven up ADS\u2019 processing costs as ADS is forced to sort through the incorrect items[9]<\/a>. Additionally, American consumers\u2019 habits have changed to recycle more plastics than papers which has hurt ADS\u2019 revenue stream as plastics are significantly lighter than paper[10]<\/a>.<\/p>\n

 <\/p>\n

Current Attempts to Address Challenges <\/strong><\/p>\n

Given the changing conditions in which they operate, Advanced Disposal has taken specific steps in trying to address each of these challenges.<\/p>\n