Managing waste is a fundamental step in the production chain and it is essential that companies do the process correctly.

By Writing Team
Posted in November 30, 2020

Much has been said about care for the environment and climate change. Also in the business world, there is a growing concern on the subject. ESG (Environmental, Social and Corporate Governance) criteria are gaining more and more importance in the investment world.

Although the term has existed for years, the discussion on the subject grew, mainly in 2020, due to the disclosure of a letter to shareholders, investors and partners made by Laurence Douglas Fink, CEO of the American brokerage Black Rock, the world’s largest consultancy in investment management.

The influential Larry Fink argues that climate change directly affects the economy and recognizes that companies that experience an ESG stance get better financial results. Therefore, from now on, Black Rock will recommend actions of these organizations in the investment strategies they develop for their clients.

The world watched the statement carefully and the term ESG came up strongly. Investors began to pay attention to companies that practice the three pillars of sustainability. After all, the companies’ sustainable practices reflect directly on the image before the market, consequently, this increases or decreases the value of the shares.

How does waste management affect Brazilian companies?

In Brazil, brokers already have specific portfolios with shares of ESG companies, which they recommend to their clients.

Faced with this scenario, one of the biggest afflictions of companies is: “What to do with the different materials that need to be discarded?” Several organizations already carry out waste management actions, however, many are still looking for more effective solutions. But, do they really know what the importance of this activity is?

National Solid Waste Policy (PNRS)

In order to perform the proper waste management, it is necessary to carry out the valuation and the entire compliance management. This is a complex process, however, very important to meet the guidelines contained in the National Solid Waste Policy (PNRS). According to this legislation, all individuals or legal entities that generate waste are responsible for its correct management.

Reflections on the image of companies

Another point that justifies the importance of waste management is the care with good internal practices that directly influence the company’s image with its stakeholders. When the company manages its waste, it adds value to the brand, minimizes its risks and attracts investors.

With the ESG on the rise, this aspect gains even more strength. Publicly traded companies generally seek waste management and recovery as one of the ways to meet the index’s environmental criteria.

Likewise, consumers are increasingly demanding and consider whether or not to buy a brand’s products, depending on their positioning and practices in relation to environmental aspects and their reputation.

Outsourcing is a good option

Now that we understand the importance of carrying out waste management, it is necessary to define whether it is better to do the work at home or outsource it. This issue must be analyzed on a case-by-case basis.

Each company has a structure and need. Everything must be taken into account and placed on the scale. However, waste management is not an easy task. The process involves a lot of time, manpower, planning, technical and legal knowledge.

In the market, some companies try to carry out waste management on their own, but with this, they end up spending a lot of time and money to understand what to do with their waste and how, increasing the cost and risk involved in this process.

In fact, a great benefit of outsourcing is that the investment and risk is much less. Another positive point is that companies minimize their concerns with the matter, by hiring a qualified supplier with expertise to manage them, and can focus on projects that involve their own core business.

We list four benefits that a company has when it outsources waste management:

1. Better valuation

When managing waste, the company needs to think about how different waste can be reinserted into the production chain as by-products or raw material. The so-called “waste recovery” process promotes a circular economy, in which everything is reused in some way, and this often minimizes costs or may even generate revenue for the company.
Some environmental management companies usually have a research and innovation laboratory that develops new waste recovery technologies. It evaluates what type of waste exists and for what purposes it can be used. In many cases, it is possible to develop another product with greater added value and, therefore, instead of taking the material to landfill, there is a way to sell it to other industries as raw material.
This type of work is done by specialists and requires studies, research and know-how. Companies with this expertise often have a qualified structure to perform this type of service. In addition to generating revenue, the valuation of waste adds value to the company’s image in the market, improving the company’s recyclability rates.

2. Monitoring of legal requirements

It is a fact that companies are concerned with following all the legal requirements imposed on waste management. There are several imposed rules that need to be strictly followed under penalty of fines, detention and exposure of the company. But in addition to the practice, there is a need to document and prove all waste management actions, because if there is any type of inspection by the regulatory body, companies need to show that they are following the law and carrying out waste management as required the politics. Compliance with waste management is one of the requirements of the PNRS.

The best companies specialized in environmental management work with software that perform the traceability and control of processes in waste management. These systems are extremely important to prove the actions that comply with all pertinent legislation. In addition, they make it possible to monitor updates to legislation, new decrees and carry out legal interpretations efficiently.

3. Traceability

Traceability is one of the most important factors within waste management. The process is carried out to ensure that all material is being sent correctly and that nothing is diverted to the parallel market. This can be done through software and artificial intelligence that guarantee the safety of the brand.

When the company is not concerned with tracking waste, it can get lost along the way, generate social and environmental impacts or be sold on the black market as a new product. All of this can give the company a big headache. Therefore, it is essential to invest in systems that show, in real time, each stage of waste management. It is a security for the brand.

4. Brand protection guarantee

The companies specialized in waste management do all the traceability of the discarded material, which guarantees the protection of the brand. As we already mentioned, industries are subject to many problems if they do not perform this type of service correctly. The guarantee that each item leaves the company and has its destination carried out effectively must be documented and tracked.

An excellent example of brand protection happens when lots of products are manufactured and for some reason they are refuted by the quality area, for example, it is not possible to sell these products. Thus, it is the company’s responsibility to properly dispose of this lot. If the company does not carry out traceability, it runs the risk of the product being sold on the black market by third parties, as if it were a new brand. For this reason, it is important to invest in software that makes total control of waste, from collection to final disposal.

Do you realize how waste management is a really complex process? For this reason, many companies are looking for help to do this. Ambipar has highly trained professionals and specialists in waste management, in addition to having a structure that guarantees innovative projects and total security for the customers’ brand with 100% traceability. To learn more about these services and how we have helped our customers for over 25 years, click here.