Jim Halter Sustainability Presentation 2011

A Sustainable JourneyJim Halter LEED® AP BD+CVice President- Construction Solutions

The Journey

International Database: World Population 1950-2050

• WATER - by 2025, 1.8 billion people will be living in countries or regions with absolute water scarcity

• OIL – enough oil for the next 46.2 years, should global production remain at the current rate

• NATURAL GAS - enough gas in proven reserves to meet 58.6 years of global production at the end of 2010

• PHOSPHORUS – deplete supply of phosphorus in 50 to 100 years unless new reserves of the element are found; without this element, plants cannot grow

• COAL - China and other developing countries continue to increase their appetite for coal, demand could finally outstrip supply; there is enough coal to meet 188 years of global production

• RARE EARTH ELEMENTS - Scandium and Terbium are just two of the 17 rare earth minerals - 97% of the world's supply comes from China, they can restrict supplies at will

Source : http://www.guardian.co.uk/environment/blog/2011/oct/31/six-natural-resources-population

The Six Natural Resources Most Drained by Our 7 Billion People

Source: www.pewclimate.org/facts-figures/trends

Atmospheric GHG Concentrations & Global Surface Temperature Trends – The Last 150 Years

In 2009, the U.S. EPA estimated that Americans produce 243 million tons of trash = 4.34 pounds per person per day. Of that, 1.46 pounds per person per day is recycled.

Source: EPA Municipal Solid Waste Generation, Recycling, and Disposal in the United States: Facts and Figures for 2009

What else is happening?

The “Spark” - Mainstreaming of Green Business

2005 2008 2010 2015

= Nonresidential Market

$172 billion

$3 billion2% of

market

$53 billion35% of market

$212 billion

= Green Market

$150 billion

$278billion

$133billion48% of market

$25 billion12% of market

Source: Green Market Size: 2011Green Outlook Report, McGraw-Hill Construction; base value of construction market from McGraw-Hill Construction Market Forecasting Service, as of August 2011

Effect on Green Building in New Non-Residential Construction

WM Journey…..How did we respond in late 2007?Sustainability Performance Leadership Teams (SPLT)Transform the Way We Work (Culture):

Increase Strategy Mindset – improve our ability to respond to changing markets and customer demands

Move from being reactive to proactive about emerging trends Change thinking about assets and opportunities – especially our people

Leadership Development: Encourage change and be able to lead it Move from tactical to strategic thinking Increase efficiency and effectiveness of our teams Take accountability for the future of Waste Management

Sustainable Business Model: Identify New Ways to View Our Business That Produce Significant Financial

Returns Capture Hidden Value Pursue Innovation and Drive Change Continue the Wake-up Call for People to Embrace Change

What Was Our Plan? SPLT Teamwork

1. Material Value – improve understanding of the waste stream and identify

opportunities with Customers to capture and optimize the value of materials.

2. Material Movement - leverage innovation in technology, equipment, and

processes to more efficiently collect, transport, process and convert

materials.

3. Sustainability Template – Learning and changing our own culture by

creating a clear guide to sustainable practices at work that help differentiate

us from our competition and decrease our operating costs and carbon

footprint.

4. Municipal Model - Assess current and future municipal customer needs

and develop an improved service model that supports their sustainability

goals.

• Link Team- Ensure collaboration and identifies synergies and overlap is all

four Teams

Benchmarking Companies

Wheelabrator Technologies Inc.

A Waste Management Company

Internal Benchmarks Communicate the case for change Identify clear SLT champion Metrics drive the behavior Identify baseline data, crown and supporting

metrics, and ROI Develop continuous improvement Must harness and coordinate all activities

External Benchmarks Championed by top level executives Cross functional steering committee to provide

oversight/direction Goals, metrics, communication are key components Employee engagement and recognition necessary for

culture change Definition of sustainability is broad Don’t be afraid to try something- don’t wait for

perfection Need to be sensitive to outside stakeholders

• Meeting the needs of the present without compromising the ability of future generations to meet their needs

• Keeping environmental impact below the level required to allow affected systems to recover and continue to evolve

What is Sustainability

WM and Sustainability

• Sustainability is a major part of WM’s identity. We will continue and expand our responsibility for safe management and recovery of the waste stream and help our customers by:

Providing solutions to our customers that reduce their overall environmental footprint

Reduce costs through more efficient collection and recovery Increase use and volume of recycled materials Participate in design of products and packaging and increase recycling

• Using practices, processes, and technology to do more with less, be more efficient with limited resources, while reducing our impact on the environment

• By leveraging sustainability principles WM will meet our environmental responsibilities, preserving natural resources, and drive business opportunities with existing and future customers, and improve the total return to our shareholders

Vision

WM seeks profitable growth through sustainability, by meeting our environmental responsibilities, preserving natural resources, and driving business opportunities with existing and future customers, thus improving the total return to our shareholders.

Energy production and use

Waste minimization and recycling

Air quality and emissions

Conservation of natural resources

Beneficial reuse of our landfill space and protection of wildlife habitats

Supply chain that supports our sustainability platform

Business Case – How We Got To Our Metrics

Calculate Savings

Gather Market Intelligence from

Internal and External Sources

Develop Financial Model

Evaluate 250 MetricsAnd Re-evaluate

Prioritize Activities Based on Behavior,

Process and Technology

Sustainabili

ty

WM Understanding Triple Bottom Line and Aligning Our Logistics Activities

EconomicReduced driver hours – reduced assets, improved efficiency, used less

fuel, used less consumables

SocialSafety ImprovementTransparencyEthics

EnvironmentalHybrid Fleet ~ 500 LNG/CNG trucks, and piloting emerging technologyMember Chicago Climate Exchange

Summary

• Demonstrate Bottom Line Improvement & Good for the Environment

• Implement a Continuous Improvement Process Launch a sustainability culture

• Go to Market Proven Results

• Foundation to Launch

• Structure

• Operating Plan

• Teamwork and collaboration

• Differentiation to set you apart from the crowd

Bottom Line

• Environmental concerns are here to stay

• Society’s approach to environmental protection is evolving: information Age tools and opportunities move towards market mechanisms private sector as the engine of innovation

• Corporate environmental strategy offers an opportunity for competitive advantage

• It’s not easy being green

The Next Generation….. The Journey Continues…..