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Innovation in waste by Dr Karl Baltpurvins

Industry Updates

August 29, 2018

Tags: Editorial

Highlights

Updated 30 March 2019

What it means to be truly innovative in any industry is hard to define – but how is the waste and recycling industry driving innovation in a time of progress and development in Australia?

In this article, Dr Karl Baltpurvins, General Manager, Technical and Environmental Services, sheds some light on the challenges facing the waste industry and how we need to innovate to meet expectations.

The importance of innovation in the waste management industry

Why do organisations “innovate”? If you ask Dr Google, the “process of business Innovation involves translating an idea or invention into a good or service that creates value or for which customers will pay. In business, innovation often results when ideas are applied by the company to further satisfy the needs and expectations of the customers”.

In my experience, the goal of innovation is to provide your organisation with a competitive advantage within the market in which you operate. In the waste sector, this is typically focussed on cost reduction, but other areas such as sustainability and the customer experience can also provide differentiation. The key is to understand what your customers want and also what factors drive the market (e.g. landfill levies). For the waste industry, the market is going through unparalleled change, particularly driven by the National Sword policy in China, and restrictions by other Asian countries, which has upset the recycling equilibria around the world. In this context, the goal of innovation in the waste management sector should logically be focussed on developing domestic resource recovery solutions. Ultimately, the organisations that innovate will obtain a competitive advantage by reducing their costs and achieving a sustainable future.

Being a market leader through innovation

Innovation in the resource recovery sector requires the sector to consider not only the future drivers of waste generation in Australia but also the world. Most of these drivers are predictable and it often surprises me just how short sighted business can be. Most importantly we need to consider the drivers in the economy and what impact these will have in the future state. For example, if you consider the rapid adoption of technology, where it be an iPhone or flat screen TV, it is fairly predictable that the volume of these wastes will be generated in line with market expansion.

The key to innovation is to invest at the right time. If you invest too early you run the risk of not obtaining a reasonable return on your investment; too late and you simply fall behind your competitors. As a country, we need to have long-term vision and an investment horizon (often 10+ years) that supports us in realising this vision. There is also a significant need for government, at all levels, to support innovation in the sector. This can include providing innovation funding, product stewardship schemes, landfill levies (and bans), ensuring that the planning process supports rather than hinders investment.

The effect of social change on policy

During my 20-year career in the waste management industry, I have never seen such a focus on the waste, as evidenced by the War on Waste series aired on ABC. It is very clear that the Australian population expects the industry and government to uphold environmental and sustainability standards. Whether it be the illegal export of e-waste to developing world, or simply banning single use plastic bags in our supermarkets, the community has mobilised and is driving significant social change.

The key now will be for the government to develop a suitable policy framework, and for all industry participants to support and drive this change. Areas such as the development of domestic recycling solutions and waste to energy are the number one priorities for the sector.

Driving change through investment

The waste sector has always shown itself to be adaptable to change with the constant evolution of the market. However, there is no doubt that the current challenges we face in Australia will require more intensive investment in infrastructure and technology. This type of investment requires very strong government policy making, so that the industry has confidence that the investment will provide a reasonable return on capital over the lifetime of the investment. For this to occur there needs to be a strong alignment with the waste management industry and policy makers (end enforcers) so that the investment risks are specifically addressed.

There also needs to be significant incentives for industry to make the necessary changes to drive such change. A good example of this is the NSW EPA Waste Less Recycle More program which aims to allocate $802 million to stimulate new investment in the sector. The great benefit of this type of program is that it requires the industry participant to jointly fund an initiative, but reduces the return on investment hurdle rate, which certainly stimulates this type of innovation.

Dr Karl Baltpurvins is the General Manager of Technical and Environment Services at Cleanaway. He holds a PhD in environmental chemistry from the University of Newcastle and has over 15 years of experience in the environmental services sector. Karl is a chartered chemist with the Royal Australian Chemistry Institute and has published papers on contaminated soil treatment, hazardous waste management, geochemical exploration, wastewater treatment and environmental chemistry.

Contact us to learn how Cleanaway can help you make a sustainable future possible with our innovations in waste management.

Waste is the new black

Industry Updates

August 21, 2018

Tags: National Sword

Highlights

Cleanaway CEO & Managing Director Vik Bansal writes about the current state of the Australian waste management industry, our Footprint 2025, and how our infrastructure continues to support our communities while improving resource recovery.

Who would have thought a couple of years ago that waste would become such a topical issue in society? Industry players have always understood the power of proper waste management and its influence for any society to ever achieve its sustainability goals.

So, it is nice to welcome the conversations about waste management within the right framework.

The multi-billion-dollar Australian waste management industry now employs more than 50,000 Australians and, in the years between 2013 and 2023, the industry is expected to grow faster than Australia’s GDP forecast of 2.6%.

‘Sustainability’ is no longer the realm of niche ‘green’ businesses or a ‘nice-to-have’ for large businesses.

Sustainability is now something that consumers expect and it is becoming an integral part of any company’s long-term strategy. Providing services that help companies achieve their sustainability goals is crucial to the success of any waste management company.

Sustainability planning is now standard business practice for many Australian companies. In fact, 72% of individual investors believe a company benefits when it pursues sustainability objectives and ASX requirements now mean companies need to disclose social and environmental risk, as well as financial risk – the triple bottom line.

It is not only the ASX listed companies focusing on sustainability, with 86% of Australian SMEs now identifying ethical and sustainable business practices as key to future success, believing that focusing on these practices will result in company growth and profitability.

The public is a key player in driving demand for sustainable outcomes, especially younger generations. People under 40 expect companies to give back and invest in improving the community and society. This group is in fact three times more likely to actively seek out employment with a company because of its stance on social and/or environmental issues, and twice as likely to check product packaging to ensure its sustainability.

Big or small, the focus on better environmental and waste outcomes is crucial to a company’s competitiveness.

Cleanaway’s focus on treating all waste as a resource goes right to the heart of what sustainability means. As Australia’s largest waste management company, we have the scope to provide customised solutions that allow businesses to reach their sustainability goals.

While Australian businesses and the community are both on board with sustainability, there are still many challenges to deal with in waste management. Australians are among the world’s largest producers of waste and although we are enthusiastic recyclers, we need to do more to improve the quality of our recycling.

Planning for a bigger Australia and the increased demand for services is the focus of Cleanaway’s Footprint 2025 strategy. Footprint 2025 is designed to tackle future challenges brought about by bigger populations and more waste. Resource recovery is integral to our Footprint 2025 vision – and the recent acquisition of Toxfree and Daniel’s Health has created the largest waste management company across the Asia Pacific, enabling an even greater capacity for Cleanaway to manage all waste streams.

Waste management is an essential service and will always be important for both the protection of the environment, and the health and safety of our community. However, it’s the proper management of waste through resource recovery that is going to be our next important step, if we are to make a sustainable future truly possible for Australia – and that’s something we can’t do on our own.

All levels of government will have to become more engaged, and provide certainty of policy framework and consistency across the nation. It will take a collaborative effort between the community, business, industry and government if we are to make this circular economy a reality.

We are ready to play our part in the new world – are you?

Sources:

State of Waste 2016 – current and future Australian trends

Waste Treatment and Disposal Services – Australia Market Research Report

The importance of corporate social responsibility

Recycling for the future

Industry Updates

April 30, 2018

Tags: Editorial

Highlights

China has implemented a policy to limit the import of low-grade plastic and contaminated materials from overseas markets. This policy, known as National Sword, bans some previously acceptable recyclables. In addition, unless materials are extremely clean (less than 0.5% contamination) and sorted into a grade that is accepted by processing mills, they will not be accepted by Chinese markets and exporters will be forced to pay for the cost of shipping back the rejected materials.

Many millions of tonnes of recyclable materials from all around the world that were formerly feeding mills in China are now competing for acceptance in other countries with smaller demand for this material. This increased supply is allowing these markets to be far more selective about what they will accept and has driven prices down.

This presents a challenge, or an opportunity, for Australian waste and recycling service providers, businesses, and individuals to improve our approach to recycling and reduce contamination. We must work together to maximise the value of recovered recyclables, and to maintain our focus on viable diversion from landfill.

What is the National Sword Program?

Historically, our ability to sell recovered commodities on the international market allowed us to heavily subsidise the cost of processing. However, in February 2017 The People’s Republic of China (China) announced their National Sword program, which is designed to reduce the importation of foreign waste and encourage the use of domestic materials. This decision along with further importation restrictions has decimated the commodity rates of many of the products we produce. The most substantial impacts are:

Banning of all unsorted recovered paper products.
Recovered Paper Products that comprise various paper types will no longer be accepted as imports for recycling. MRF grades such as Soft Mixed Paper, Residential Paper and Old Newspaper (ONP) grades are included in this. Commercial collections of mixed paper cuttings from printers also fall under this ban.
Banning of all post-consumer recovered plastic.
Any plastic that has been used in any way is now banned. Some industrial collections of scrap/offcuts/purge from manufacturing using plastic will be accepted.
Reduction of tolerated contamination levels from 1.5% by weight to 0.5% by weight of carried waste.
Carried waste is defined as:
- Foreign substances introduced into Imported Waste Paper during production, collection, packaging and transportation (excluding packing materials for the Imported Waste Paper and other substances that need to be used during the transportation process). This does not include any organic or putrescible material.
- In the case of paper imports, foreign substances include: wood waste, waste metal, waste glass, waste plastic, waste rubber, waste textile, spent absorbent paper, aluminium or plastic composite paper, thermosensitive paper, asphalt-coated moisture-proof paper, self-adhesive paper, wallpaper, waxed paper, wax dipped paper, oiled paper, silicon oil paper and carbon paper.

How will this affect you?

As the market has changed substantially, there is an impact on the cost to process recyclable material. This effect will be greatest if there is substantial contamination in commingled bins.

The decline in market pricing means that the value of recovered commodities will no longer subsidise the cost of sorting and processing mixed recyclables. As a result, the cost structure for commingled recycling may change from a free service, or in some cases a rebate service, to a cost for councils, ratepayers, and businesses.

In addition, contaminated commingled products will attract additional fees. Commingled recycling bins that are detected to include non-compliant items like food, textiles, timber, and e-waste, will not be collected. A subsequent service will be required and will be charged as general waste.

Where contaminated bins are inadvertently collected, the service fee will be adjusted to reflect general waste.

How can you make your waste more recyclable?

Cleanaway can work with you to review your waste profile and evaluate the potential to move from a commingled service to a cardboard collection service. By sorting more recycling at the source, we improve the quality and reduce instances of contamination.
If commingled recycling is still the best solution for you, make sure you understand what is compliant, and what is contamination. Set up bin stations to support your teams to recycle correctly. Cleanaway can provide education and best-practice bin set-ups for your site or office.
Help your teams understand the impact of contamination including how it affects recycling and your sustainability targets.

Cleanaway’s commitment to resource recovery

Cleanaway has been processing recyclables on behalf of our customers for almost 30 years. We were the first to introduce recycling collections and the first to build and operate mechanised Material Recovery Facilities for the sorting and baling of commingled recyclables.

Last year, we reaffirmed our commitment to recycling by constructing one of the largest and most advanced recycling facilities in Australia. This $25M infrastructure investment in Perth was made to ensure the long-term capacity to process recyclables for our Western Australian customers.

https://www.youtube.com/watch?v=sYMPDIAG_WI

We will continue to take a lead role in developing improved industry standards that seek to maintain and increase the level of household and business waste that is diverted from landfill.

Cleanaway has a clear mission to make a sustainable future possible, and we are committed to our Footprint 2025, which will create a strong infrastructure footprint to drive resource recovery and waste to energy initiatives.

As the largest waste management services provider in Australia, we will continue to work with our customers and partners to leverage existing recycling practices and to explore future opportunities.

Leadership in the waste management industry

Industry Updates

April 16, 2018

Tags: NWRIC

Highlights

In 2017, five of Australia’s largest waste management companies joined forces to form the National Waste & Recycling Industry Council (NWRIC).

By bringing together the major operators in waste management, recycling, and resource recovery, NWRIC acts as the industry’s national policy-setting body for a national advocacy agenda that promotes best practices, and harmonisation of legislation across Australia.

As a founding member of NWRIC, Cleanaway’s CEO and Managing Director, Vik Bansal emphasised the need for the waste management sector to lend a strong and coherent voice to discussions about the future of waste management.

“As the largest waste management company in Australia, our shareholders and stakeholders, including our employees and the board, expect us to behave like an industry leader. We need to bring together the businesses that own 85 percent of the market and tell the government what we believe the strategic issues to be and how we need its help.”

As part of its mandate to address industry-wide issues, the NWRIC recently called for urgent action to address market changes in response to China’s National Sword policy.

Under the policy, recycled materials exported to China are now subject to stringent contamination standards. From 1 January 2018, contamination rates for materials exported must not exceed 0.5%, compared to 5% to 10% previously.

These new guidelines have put pressure on the Australian recycling system, due to the large amounts of contaminated recyclables currently collected from kerbside bins. Kerbside collection audits have shown contamination levels of up to 10%, on average.

As a result, an unforeseen and sudden crash in the price of recycled materials has left a significant volume of material ‘stranded’, with no end market available.

“The NWRIC is urging all customers, including local government and commercial waste generators, to meet with their recycling supplier to plan for sudden and unforeseen changes,” said Mr Phil Richards, Chairman of the NWRIC.

NWRIC is calling each state to form a recycling task force to review current practices and develop new processes to protect and advance domestic recycling. The challenges to be addressed by the task force are suggested to include:

Products accepted in household recycling bins
Education to reduce contamination
Recycling labelling
An approach to glass collection
Maximising value from container deposit programs
A review of packaging design and reuse
A review of how landfill levies effect recycling
A review of contract conditions for recyclers

(Source: Jurisdictional task forces needed to protect recycling)

The Council has also called for a leading approach to container deposit programs that will support and protect material recovery facilities. NSW is the third Australian jurisdiction to adopt a CDS scheme, with Queensland and the ACT to follow in 2018. South Australia has the longest-running CDS in the country and sees a 76.5% return rate for their beverage containers. They also have a very high landfill diversion rate of 80% across the board.

Visit NWRIC to learn more, including the latest news, policies, and charter.

Visit our Sustainable Future hub to see how we’re helping make a sustainable future possible through our marketing-leading associations and partnerships.

Cleanaway and TOMRA joint venture appointed Network Operator for the NSW CDS

Industry Updates

July 31, 2017

Tags: CDS

Highlights

NSW Environment Minister Gabrielle Upton today announced that a joint venture between Cleanaway Waste Management Ltd, Australia’s leading total waste management company and TOMRA Systems ASA, has been appointed the Network Operator for the New South Wales Container Deposit Scheme (CDS).

The joint venture between Cleanaway and TOMRA will provide handling, transport, processing, recycling and data services from reverse vending machines as part of the CDS in NSW. The CDS is scheduled to commence on 1 December 2017.

NSW Environment Minister Gabrielle Upton at the announcement of “Return and Earn” at Coogee Beach, NSW.

The reverse vending machines to be provided by the joint venture allow consumers to return their containers and to collect an electronic refund, to donate the refund to a charity, or to obtain a voucher from one of the ‘redemption partners’ which can be used as credit in store or redeem for cash.

Collected containers will be processed through a counting and sorting centre in western Sydney. The containers collected will be recycled and sold into both domestic and export markets.

CEO and Managing Director of Cleanaway, Vik Bansal said: “The NSW government should be applauded in developing and bringing to fruition a world class container deposit scheme.

“As leaders in logistics and resource recovery, Cleanaway are proud to be involved in the CDS for NSW, and help them achieve their environmental and sustainability goals.

“By partnering with an innovative leader like TOMRA, we’re leveraging the experience of the global leader in reverse vending technology to deliver these services in New South Wales.

Environment Minister Upton said: “This is the biggest initiative to tackle litter in the state’s history and it will make a massive difference to the amount of rubbish on our streets, parks and waterways right across NSW.

“It will also provide a fundraising opportunity for charities, schools, community and sporting groups, which share in millions of dollars every year, through similar schemes elsewhere that have been running for decades.”

In conclusion, Mr Bansal further stated: “With TOMRA we remain keen to work with other states of Australia that are currently considering implementation of similar schemes.

“At Cleanaway our mission is to make a sustainable future possible and there is no better example of sustainability than a CDS scheme. NSW CDS is an excellent illustration of how governments can work with industry to implement policies that drive behaviour change and environmental benefits for generations to come.”

Further information:

Frank Sufferini, Head of Investor Relations and Corporate Affairs
M: 0416 241 501 E: frank.sufferini@cleanaway.com.au

Cleanaway awarded waste collections contract for Kempsey

Industry Updates

February 14, 2017

Tags: Resource Recovery

Highlights

Kempsey Shire Council has announced that Cleanaway has successfully secured the waste collections contract for 2017-2027.

Commencing on 1 July 2017 the new service involves changes to bin sizes and collection frequencies aimed at keeping community costs down, increasing resource recovery, and reducing waste going to the local landfill.

Under the contract all households with a waste service will receive a weekly green bin for food and garden organics, a fortnightly red rubbish bin collection, and the option for a larger yellow recycling bin for a small fee.

Kempsey Shire Council General Manager David Rawlings said these best practice waste management arrangements were necessary to meet the EPA’s waste disposal targets and Council’s economic and environmental objectives.

“If we do nothing, waste costs will continue to rise. This new waste service and education program will help residents sort waste properly and make additional savings,” Mr Rawlings said.
“If our community continues to improve recycling rates and keep more food and garden waste out of landfill, we’ll achieve further savings that will be passed back to households through reduced waste charges.

“The new bin sizes will give most households more space for their waste over a fortnightly period, so the key will be to ensure we are putting everything in the right bin.”
As the successful tenderer, Cleanaway met Council’s requirements for the provision of an efficient, economical and sustainable waste service that can adapt to changes in industry standards and meet the needs of the community.

NSW Regional Manager, Michael Biagi, said Cleanaway would be working closely with Kempsey Shire Council and the local community to achieve waste reduction, recycling and composting goals.
“We’ve helped regional and metropolitan councils across Australia to improve waste management and provide savings for the community and the environment,” Michael said.

Residents will receive information about bin size options, pricing and important dates over coming months.

Cleanaway Managers and the Managers from Kempsey Shire Council — Josh Stanley, Field Sales Manager NNSW Cleanaway; Michael Biagi, NNSW Regional Manager Cleanaway; Stuart Carsley, NSW Equipment Manager Cleanaway; David Rawlings, Kempsey Shire Council General Manager; Trevor Dickson, Manager Technical Services Kempsey Shire Council; Luke Williamson, NNSW Commercial Finance Business Partner Cleanaway

Further information:
Melissa McColl, Communications and Engagement Manager
M: 0466 323 844 E: Melissa.McColl@Cleanaway.com.au

Cleanaway Waste Management Ltd is Australia’s leading waste management company, operating a national network of unique collection, processing, treatment and landfill assets from over 200 locations across Australia. Our philosophy is that all waste is a resource and we aim to incorporate recover, recycling and reuse throughout our operations and those of our clients. Our mission is to make a sustainable future possible for all our stakeholders.

Cleanaway wins Turnaround of the Year Awards

Industry Updates

November 2, 2016

Tags: Awards

Highlights

Cleanaway Waste Management’s strong operating and financial performance for 2016 has been recognised with the Turnaround Management Association’s (TMA) Turnaround of the Year Award, in the large company category.

The company increased revenue, profits and operating cash flow in FY16, leading Cleanaway (ASX:CWY) to be one of the best performing stocks on the ASX for the August 2016 results season.

CEO Vik Bansal’s appointment in July 2015 was the catalyst for a comprehensive review across the entire organisation, leading to the gradual and sustained improvement across a range of strategic and operational metrics.

“The focus was on re-setting the business for success with a clearly-defined strategy and an achievable action plan”, said Mr Bansal.

Key milestones included bringing the company together under a new name and single brand, refining and realigning the business under a more effective operating model, and establishing strong capital and cost disciplines.

“It was also about accelerating and re-focusing our growth initiatives and customer service, and ensuring clear accountabilities for our senior leadership to enable improved performance. This award could not have been achieved without the hard work and commitment of the whole Cleanaway team”, said Mr Bansal.

Providing waste management, industrial and environmental services to more than 100,000 customers, with operations stretching across the country, Cleanaway employs more than 4,000 staff from nearly 200 sites across both metropolitan and regional locations.

Further information:
Melissa McColl, Communications and Engagement Manager
M: 0466 323 844 E: Melissa.McColl@Cleanaway.com.au

Download a PDF copy of the release here.

Cleanaway Waste Management Ltd is Australia’s leading waste management company, operating a national network of unique collection, processing, treatment and landfill assets from over 200 locations across Australia. Our philosophy is that all waste is a resource and we aim to incorporate recover, recycle and reuse throughout our operations and those of our clients. Our mission is to make a sustainable future possible for all our stakeholders.