Seven Ways Waste is a Missed Opportunity
In 2018, the Environmental Protection Agency (EPA) estimated the United States (U.S.) generates over 292 million tons of municipal solid waste annually. This represents over 12% of global waste. As the importance of waste reduction gains traction, organizations face key questions:
- How will this affect our finances?
- What returns can we expect?
- Will this disrupt our operations?
- Do we have the capacity for these changes?
- Who will lead these initiatives?
- Is it worth it?
For those considering sustainability and waste reduction, we’ve compiled a brief list based on our experience as zero waste consultants. Here are seven ways waste is a missed opportunity.
1. CUTTING WASTE CUTS COSTS
Waste often flies under the radar as an industry giant, valued at $91 billion in the U.S. alone in 2022. Each item discarded carries a financial weight, from bin rentals to maintenance, custodial labor, collection equipment, hauling and disposal fees, and contamination fines. Time and time again, reducing waste translates directly to slashing costs. Take Toyota, which saved $4.2 million annually across its North American sites by prioritizing waste reduction and diversion. This success exemplifies the potential financial benefits of waste reduction to your organization.
Revamping waste systems not only cuts expenses, it can also create opportunities for secondary revenue, such as selling recyclable commodities. Knowing what and how much you waste can turn materials from liabilities into income sources. Your waste reflects your purchases. By exploring system or product redesign, waste reduction, reuse, and avoiding complicated packaging, you can directly impact your bottom line.
2. STREAMLINE YOUR OPERATIONS
Material often ends up in landfills because it’s out of sight and mind. Many organizations operate on autopilot, tossing items into bins and forgetting their initial value. While we prioritize formal systems and standards for accounting, customer service, and compliance, waste management often lags behind.
Analyzing waste can reveal communication gaps, procurement challenges, cultural misalignments, and protocol oversights. Waste can be a mirror into underlying operational inefficiencies. The material we toss is often just the “tip of the iceberg” of what’s actually being wasted. Waste visibility highlights the processes and practices that generate it, prompting questions like “Why are we wasting this?” and “How can we improve?”
For example, a manufacturing facility ordered membrane paper and cut it down by 2″ on every roll to fit their modules. Initially, bulk ordering reduced costs when producing a variance of module sizes. As sales increased, no one tracked the change. The scrap waste generated from this process took up increasing space in the dumpsters, resulting in daily waste pickups. A deep-dive waste assessment revealed a significant volume of material, prompting the question, “Why are we still doing it this way?” It wasn’t just material waste; it was a waste of time, energy, labor, and financial resources. A request for an alternative size from the vendor eliminated the scrap waste and freed up team members to tackle other critical tasks.
3. ENGAGE AND EMPOWER YOUR EMPLOYEES
The heartbeat of your business is its people. A strong organizational culture fosters employee retention and attracts new talent, as workers today seek companies making a positive impact. According to 2022 research from McKinsey & Company, 82% of employees feel an organization’s purpose is important, and 70% say their work defines their sense of purpose. Disengaged employees can cost U.S. companies up to $550 billion annually, according to a joint study by The Engagement Institute. On the other hand, engaged employees boost profitability by 21%.
While organizations globally begin to tackle sustainability initiatives, waste management stands out for its ability to directly engage and empower teams. Energy reduction and lower greenhouse gas emissions are critical but can feel invisible and elusive to the average employee. Streamlined waste systems, procurement changes, and reduced landfill waste are physically noticeable and involve collective participation. Transforming waste systems and the transparency that comes with it enables team members to feel directly involved in positive change.
These programs give employees consistent and palpable control over outcomes, fostering pride in their environmental impact and connecting their role to the organization’s greater mission and purpose. Everyone has waste, from the highest C-suite leaders to lab technicians, facility partners to sales reps and administrative teams. Waste is an opportunity to unify your organization with a shared vision for the future and a tangible way to achieve it.
4. FOSTER CROSS-DEPARTMENT INNOVATION
Waste permeates every department and individual role in your organization. Evaluating waste systems and material flow can break down silos and reveal each department’s impact on others. For example, a procurement decision upstream may cause unnecessary waste downstream, or a service technician’s waste may stem from a communication error at customer service. Choices that may seem negligible in one department could be causing waste effects that are considerable in another. These decisions or errors could result in more than just material waste. They could lead to billing issues, work backlogs, and dissatisfied customers.
Identifying what, where, and why your organization wastes is a crucial step toward improving cross-department communication, empathy, and effective workflows. It provides opportunities for team members to connect, problem-solve, and develop creative solutions together. Evaluating your waste can be the gateway for fostering long-term, cross-department innovation and collaboration.
5. STRENGTHEN YOUR SUPPLIER RELATIONSHIPS
An organization’s success hinges not only on its workforce but also on its external stakeholders, including its suppliers and vendors. Zero waste and waste reduction initiatives can strengthen relationships and improve communication with these partners. These efforts can open the door to conversations that enhance transparency and help identify shared values and objectives. When both parties have a clear understanding of each other’s goals and a mutual desire to support the effort, the journey to get there is smoother.
Identifying potential areas of disconnection early on can save you time, prevent headaches, and help you avoid issues like missed targets and deadlines. Many organizations are currently tackling sustainability initiatives for the first time. While your vendor might not have an immediate solution to your waste problem, those who are willing to listen, explore alternatives, and view your challenges as opportunities for improvement exhibit the qualities of a strong partner for growth.
Conversely, vendors who dismiss your waste concerns may signal inflexibility in their organization. This rigidity could indicate a business that may struggle to adapt to significant changes or transitions over time, risking disruptions and putting you at a disadvantage against competitors in the future.
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6. IMPROVE TRANSPARENCY AND ALIGN WITH MARKET TRENDS
A 2021 PwC survey found that 86% of employees and 83% of consumers prefer companies aligned with their Environmental Social Governance (ESG) values. Organizations with a strong ESG focus often enjoy a better brand image and market share than their competitors. These businesses also demonstrate greater adaptability and market relevance, traits that attract investors.
Incorporating waste initiatives into ESG strategies and reporting enhances a company’s position. Reducing landfill waste and adopting sustainable practices signal a commitment to environmental stewardship that resonates with employees, consumers, and shareholders. Evaluating waste streams provides critical data for accurately reporting environmental impacts, such as water, energy, and greenhouse gas emissions.
Understanding waste is essential for calculating Scope 3 emissions, which include all indirect emissions in an organization’s value chain. Waste assessments and benchmarking of waste programs offer crucial data on the waste types, volumes, disposal methods, and associated emissions factors of your operation. This data can highlight opportunities for emissions reduction; without it, a comprehensive Scope 3 inventory is nearly impossible. As investor interest in ESG grows, companies leading in sustainability are more likely to attract capital and ensure long-term market viability.
7. CATALYZE IMPACT IN YOUR COMMUNITY
Reducing waste sent to landfills and incineration fosters collaboration, education, and impact that reaches well beyond the walls of your organization. Employees learn and grow together, transforming their everyday relationship with the materials that make your operation possible. They share their knowledge and inspiration with friends, family, and their communities. Your transparency and desire to do better influence your suppliers and vendors. They may turn the conversation inward and reflect on how to improve their own operations. You may form new relationships with organizations and community groups whose missions are made possible with materials you once considered “trash.” These efforts foster pride among customers who appreciate engaging with a business that cares and recognizes its opportunity for large-scale impact.
Waste initiatives create a ripple effect of positive change across teams, departments, communities, cities, and even countries. As awareness spreads, material once devalued transforms into another opportunity—an opportunity to reflect, reevaluate daily practices, form new perspectives, strengthen networks, and advance together. While the physical changes from implementing waste diversion programs are quantifiable, the domino effect of broader community impact is beyond measure.
SEIZE THE OPPORTUNITY
The case for tackling waste reduction and zero waste initiatives in business operations is compelling and multifaceted. As you reflect on several of the many ways waste is a missed opportunity, we encourage you to consider how your organization can take steps to reduce waste.
Whether it’s completing a waste assessment, engaging team members in a new sustainability initiative, or fostering stronger partnerships with suppliers and communities, every action counts towards building a more sustainable future.
Our Destination Zero team here at Ingenium is here to guide you along your journey. Ready to seize the opportunity and control your destination? Contact us, and we’ll help you transform how your world sees waste.
