In focus: Republic Services

Republic Services collects hazardous, non-hazardous and speciality solid waste. We believe the company, which is held in our Positive Impact strategy, plays a crucial role in supporting the circular economy and in fostering sustainable cities and communities.

Sustainable waste management

Population growth has resulted in burgeoning quantities of waste. Poor waste management poses a serious threat to the environment, resulting in air pollution, contaminated water and soil, and disease and infection. Republic Services seeks to provide a tenable solution to this problem, transporting waste from the curb side to transfer stations, landfills and recycling centres, and therefore promoting a circular economy.

The company handles the waste it collects in a variety of ways, including recycling it and transforming it into energy. When organic material decomposes in landfill, biogas is generated; approximately 50% of this is methane – a potent greenhouse gas. Republic Services uses this biogas for clean energy production. For example, landfill gas is used to generate energy for the public utility grid. It can also be transformed into renewable natural gas, facilitating the decarbonisation of vehicles. The company has announced a joint venture with Archaea Energy, to develop approximately 40 renewable gas projects across the US over the next few years.

Focus on recycling

Republic Services is also active in the recycling space, operating 74 recycling centres. It sifts materials such as paper, plastics and metals and recycles them for use in sustainable packaging. The business further recycles food and garden waste. This waste can be used as a nutrient-rich compost or turned into renewable energy. Additionally, the business helps recover edible food for distribution among the underprivileged. In 2023, the company opened its first Polymer Center in Las Vegas. This will convert plastics collected from businesses and homes into recycled resin for use in packaging. The business aims to build out a network of such centres, with each facility expected to generate over 100 million pounds of recycled material every year.

In terms of its own business operations, Republic Services is replacing diesel trucks with those powered by natural gas and is aiming for its fleet to become electric. It has implemented a number of 2030 sustainability goals, including increasing recovery and circularity of key materials by 40% and decreasing Scope 1 and 2 greenhouse gas (GHG) emissions by 35%. The latter has been ratified by the Science Based Targets initiative. It also hosts eight solar projects and derives a portion of its energy needs from three solar sites. Furthermore, it targets a 50% increase in beneficial reuse of biogas by 2030.

The information provided should not be considered a recommendation to purchase or sell any particular security.
 

Source: Republic Services, ‘Sustainability Report 2023’, ‘SASB Report 2023’, ‘Recycling for a More Sustainable World’, ‘The Journey Of Landfill Gas To Energy’, (republicservices.com).

Impact area: Circular economy
Primary SDG: SDG 11: Sustainable cities and communities