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WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 2OUR COMPANYMessage from Our CEO03Waste Managementin Summary05Goals and Progress to Date06Our Business Mix07Awards and Recognitions09Sustainability KeyPerformance Indicators12About this Report13OUR BUSINESSIntroduction to theCircular Economy15Reducing Waste17Growing Recycling24Extracting Valuefrom Organics43Recovering Energyfrom Waste47Harnessing Energyat the Landfill53OUR OPERATIONSSustainabilityPerformance58Creating a GoodPlace to Work75Workforce Safety80Engaging withCommunities87

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 3MESSAGE FROM OUR CEOMESSAGE FROMOUR CEOTHE EVOLUTION OFWASTE MANAGEMENTOur last report focused on “Embracingthe Zero Waste Challenge.” This year we’relooking more to the here and now —while maintaining sight of that challenge.We’re focusing on the hard choices confrontingour customers, our company andothers who want to get to zero waste.The environmental service industry playsa critical role in preserving global naturalresources. One of the great benefits ofrecycling is its value to the global good. TheU.S. Environmental Protection Agency (EPA)estimates that the 87 million tons of municipalsolid waste recycled and composted in2012 saved more than 1.1 quadrillion BTUsof energy — enough to power 10 millionhouseholds for a year. 1 These life cyclesavings from recycling are seen throughoutthe value chain, from the trees thatare preserved to the barrels of oil avoided.Our role in conserving resources is a pointof pride because of Waste Management’saspiration to hand the planet to the nextgeneration in better condition than whenwe received it. It’s also an achievement ourcustomers share when we collaborate.But to be sustainable over time, ouroperations must make economic sense.We continued to make good progresstoward our 2020 sustainability goalsduring this 2012–2013 reporting period.In two of our four goals, however, we'vefaced some challenges.Recycling: By 2013, recycling representedthe majority of our company’s non-collectionrevenues. Over the past several years,the waste stream has changed dramaticallydue to changes in consumer purchasingbehavior. Our materials recovery facilitieswere built to handle 80 percent paperand 20 percent bottles and cans. Today,they receive 50 to 60 percent paper and40 to 50 percent bottles and cans. Thesechanges in consumer purchasing increaserecycling processing costs and decreaseoverall commodity revenues. In 2013, wemanaged 15 million tons of recyclables, ajump from 12.9 million tons in 2012. Butour percentage of revenue from recyclingdecreased. This is attributable to a dip inprices for recycling commodities, changesin the mix of materials we receive anddemand for cleaner recyclables from ourend markets.Single stream curbside recyclingdemonstrably increases the volume ofrecyclables collected. That’s why moreand more communities are adopting it.But it also opens the door for increasedvolumes of non-recyclable material inrecycling bins, which contaminates thematerials and often causes the materialsto not be recycled. It also drives upoperating costs. For our recycling businessto remain sustainable, we need toaddress the economics of recycling. Wehave focused on operational excellence,and on asking our customers to improvethe quality of the material that we receiveat our recycling facilities to match whatrecycling commodity markets demand. It’salso become clear that better consumereducation on how to recycle is sorelyneeded. That is why we’ve launched a new

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 4MESSAGE FROM OUR CEOWaste Management education programcalled Recycle Often. Recycle Right. SM ,which relies on partnerships with customersat every level, to highlight what can— and can’t — be recycled and to instillthe principles of sustainable recycling.Waste-based energy: Our waste-basedenergy revenues and generation were flatin 2013. Natural gas is a low-cost alternativeto our waste-based energy, andwe recognize that achieving our 2020goal of 2 million households served willbe challenging.Our landfills produce gas sufficient topower over 470,000 households, and wewill continue to invest in these projects.As an expert in landfill gas to energy, wewill look for opportunities to expand ourservices to landfills owned by others.In July 2014, we announced an agreementto sell Wheelabrator Technologies,our waste-to-energy business, to EnergyCapital Partners (ECP). Our core strengthis in supplying feedstock to waste-toenergyfacilities rather than selling theelectricity they generate. Once thistransaction closes in late 2014 or early2015, we will enter into long-term wastesupply agreements with ECP. We will stilluse our waste to create energy, but ownershipof the energy will go to ECP, whichhas deep expertise in energy markets.Going forward, we will continue to exploreopportunities for innovation in convertingwaste materials into energy and otherlow-carbon products. But we will be verydeliberative in making strategic investmentsin innovative technology projects— perfecting the technical processes,understanding optimal logistics and matchingend-use products to market demand.We are seeing public interest in smallerscaleprojects that convert waste to fuel,and we are commercializing plants thatconvert post-recycled residuals into industrialfuel products. We still believe investingin “green” is good for the long-term healthof both our company and our planet.Fleet emissions and efficiency: Solid progresscontinues in converting our fleet tonatural gas to reduce carbon emissionsand offer our communities quiet, reliableservice. In this respect, we benefit fromthe low cost of natural gas. Our fleet nowstands at more than 3,000 natural gascollection vehicles, the largest heavy-dutyfleet of its kind in North America.Protecting habitat: We continue to seetangible and intangible benefits from ourwildlife habitat conservation efforts. Theseprojects are good for the environment,good for the communities in which weoperate and gratifying for the employeeswho demonstrate leadership by developingand maintaining these projects.The challenges of 2013 made us smarter,and I am immensely proud of what ouremployees accomplished. They served ourcustomers well, helped their neighborsand communities and delivered strongresults for our investors. And they did itall with a keen eye on ethics, safety andprotecting the environment.Thank you for reading our sustainabilityreport, and thank you for your engagementwith us as we continue our journey— together — toward a sustainablefuture for all.Respectfully,DAVID P. STEINERPresident & Chief Executive Officer

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 5WASTE MANAGEMENT IN SUMMARYindependent power production plants;2 produce renewable energywaste-to-energy plantsactive solidwaste landfillsnatural gas fueling stations;27 serve the publicactive hazardouswaste landfills4172625activehazardous wasteundergroundinjection facilityLANDFILLS58ENERGYsecondaryprocessing facilitieslandfill-gas-to-energyprojectsmillioncustomersWASTE MANAGEMENTIN SUMMARYAS OF YEAR-END 2013collectionoperationsWaste Management, Inc. (NYSE: WM),based in Houston, Texas, is the leading providerof comprehensive waste management andenvironmental services in North America.We create enoughenergy to power morethan 1.1 millionhomes every year.18137We manage over15 million tonsof recyclablecommodities.+21organics processingfacilitiesWe dedicate27,000 protectedacres to wildlifehabitat.1 120OTHER FACILITIES36thousand390employees43$1.3PEOPLE310transfer facilitiesFINANCIALS$1.3$922$14billion incapital expendituresbillion inrevenuebillion infree cash flowmillion returnedto shareholderstraditional recyclingfacilities; 50 are singlestream and 12 are forconstruction and demolitionmaterial recycling

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 6GOALS AND PROGRESS TO DATEGOALS AND PROGRESS TO DATERECYCLABLES MANAGED(million tons)NUMBER OF WILDLIFE HABITAT PROGRAMS20078.0200724201112.92011201213.82012128 3 134201315.020131322020 GOAL202020 GOAL100WASTE-BASED ENERGY PRODUCTIONNUMBER OF ACRES PROTECTED(million households)20071.07200717,00020111.17201126,00020121.03201228,00020131.10 2201327,0002020 GOAL22020 GOAL25,000FLEET EMISSIONS(percent reduction in carbon dioxide equivalent (CO2e) emissions)2007 emissions: 2.13M tons CO2e2011201220202013182020 GOAL15

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 7OUR BUSINESS MIXOUR BUSINESS MIX“GREEN” VS.TRADITIONAL SERVICESSix years ago, we began reporting onour activities in a new way. We distinguishedour operations that extractvalue from waste — what we term“green services” — from those thatisolate waste in safe disposal sites (thetraditional model). We described thisallocation in terms of the revenue generatedfrom each of these activities.Green services include all forms ofrecycling, as well as waste-to-energyand landfill-gas-to-energy projectsand revenue from collections thatfeed these projects. The green categoryalso includes our consultingwork helping other enterprises reduceand recycle waste as well as producegreen energy. And it includes our workwith partners to develop new ways toconvert waste into valuable resources,in particular the development of newlow-carbon fuels and even chemicalsnot derived from fossil fuels.41% TRADITIONAL SERVICESWASTE MANAGEMENT REVENUES IN 2013Traditional collection/transfer 36%Traditional landfill 5%Green collection/transfer 27%Recycling 17%Green energy production facilities 13%Newest innovation service lines 2%59% GREEN SERVICES

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 8OUR BUSINESS MIXWe strive to extract more value fromthe materials we manage, reducing whatis ultimately disposed of in landfills. Thisgoal challenges us to re-evaluate whatwe think of today as “waste” products,envisioning them instead as feedstocksavailable to create energy or new products.The idea is that we can reusematerials in a “circular economy” thatoperates as a true closed-loop system,where little is wasted.We know there is a lot of work aheadto make this vision a reality. But we’recommitted for the long term becausewe see the potential to radically transformthe way we all define — andinteract with — waste. And in thattransformation, we see opportunitiesfor our business.Not surprisingly, the global recessionhas had an impact on our business mix— that is, on the relative proportionsof revenue we derive from each area ofour operations. For two consecutiveyears, our recycling operations havefaced low commodity prices and higheroperating expenses. In 2013, our greencollection/transfer revenues increased3 percent over 2011, but like the restof our industry, we are subject to themarket forces that influence demandfor the materials we collect, includingcardboard and paper, glass and plastic,industrial and commercial waste, andfood. Faced with difficulty finding economicallyviable markets for many ofthese materials, our recycling revenueswere essentially flat.In 2013, we brought three new landfillgas-to-energyfacilities on line. Wenow have 137 of these facilities inoperation, which collectively generate676 megawatts of power annually.Our waste-to-energy productionwas essentially flat in 2013, with newprojects in development but not yetapproved for construction.Revenues from our innovative servicelines were also flat in 2013, a reflectionof the fact that some emerging technologiestake several years for proof ofconcept. Waste Management continuesto be a leader in developing technologiesand processes to repurpose the broadrange of materials that we handle forour customers. But we’ve learned thatgetting feedstocks ready to be transformedis often complex and challenging.With the low cost of natural gas, theeconomic downturn, and less venturecapital flowing into alternative energy,we also know that these innovative businessesare going to take some time tobecome established.In 2013, we tapped into expertise acrossthe company by gathering a technologycouncil to help guide our evaluation ofnew technologies and provide essentialknowledge of logistics, operations andthe regulatory context relevant to newofferings in our industry.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 9AWARDS AND RECOGNITIONSAWARDS AND RECOGNITIONS2014WORLD’S MOSTETHICAL COMPANIESEthisphere InstituteFor the seventh consecutive year,Waste Management was named oneof the World’s Most Ethical (WME)Companies by the Ethisphere Institute,a research-based organization thatpromotes best practices in corporateethics and compliance. One hundredand forty-four companies were recognizedon the organization’s 2014 WMElist. According to Ethisphere, the list“recognizes companies that truly gobeyond making statements about doingbusiness ‘ethically’ and translate thosewords into action.”Waste Management was included onthe Dow Jones Sustainability Index(DJSI) World and North America listsfrom 2012 through 2014. WasteManagement has been listed on theDJSI indices for 10 of the past 11 years.The DJSI tracks the performance ofthe world’s leading companies in termsof economic, environmental and socialcriteria, primarily for investors whowant to take sustainability into accountin their portfolios.In 2014, we were recognized by theCDP (formerly Carbon DisclosureProject) for the depth and quality ofour climate change data. While we havereported our greenhouse gas (GHG)emissions to the CDP for more than adecade, this is the first year we wereincluded on the CDP’s S&P 500 ClimateDisclosure Leadership Index. Accordingto the CDP, inclusion in this indexsignifies that a company has providedcomprehensive information about themeasurement and management of itscarbon footprint, its climate changestrategy and risk management processesand outcomes.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 10AWARDS AND RECOGNITIONSADDITIONAL AWARDS RECEIVED IN 2012 AND 2013Sustainable Business RecognitionsRobecoSAM Gold Class Sustainability Leader,2013 Sustainability Yearbook — KPMGInternationalGlobal Benchmark Index Company— FTSE4GoodBest Corporate Citizens, Services Category —Corporate Responsibility MagazineTop S&P Companies for Integrated Reporting(runner-up) — Investor Responsibility ResearchCenter InstituteU.S. 50 (most advanced U.S. companies) —Euronext VigeoTop 25 Sustainable Brands on Twitter— TriplePunditLeader in Sustainability Consulting —Environmental Business JournalSustainable Business Award — Utah BusinessmagazineSustainable Action Award, for WM SaintNicéphore — Québec Association for EnergyAdvancementEnvironmental RecognitionsConservation Education Award — WildlifeHabitat CouncilCorporate Habitat of the Year — WildlifeHabitat CouncilEarth Day Award — Westchester County“Green-ovation award” for gas-to-liquidsproject, Oklahoma City, Oklahoma — U.S.Environmental Protection Agency, Region 6Virginia Environmental Excellence Program“superior” performance award — VirginiaDepartment of Environmental QualityExcellence in Environmental EducationAward — Colorado Alliance for EnvironmentalEducationAlternative Fuel Fleet Leader, for WasteManagement of Florida — Southeast FloridaClean Cities CoalitionLitter Prevention Award, for WM of Kansas —Keep America BeautifulWorkplace RecognitionsCorporate Equality Index/Best Places to Workfor Lesbian, Gay, Bisexual, Transgender Equality— Human Rights Campaign FoundationTop 100 Ideal Employers for College Students— UniversumU.S. Secretary of Defense Employer SupportFreedom Award (national finalist) — EmployerSupport of the Guard and ReserveTop 100 Military Friendly Employer — G.I. JobsmagazineBest for Vets Employer — Military TimesTop Veteran-Friendly Companies — U.S.Veterans MagazineMost Valuable Employers for Military —CivilianJobs.comBest Place to Work, for Wheelabrator Spokane— Association of Washington Business

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 11AWARDS AND RECOGNITIONSCustomer RecognitionsCustomer Service and Innovation Award —Home DepotSupplier of the Year — Rio TintoSustainable Partner of the Year —Balfour BeattyPartner of the Year — City of OceansideAWARDS FOR THE WASTE MANAGEMENT PHOENIX OPEN 4Sport for the Environment Award —Beyond SportGold Certification — Council forResponsible SportCrystal Award Winner — AmericanMarketing Association HoustonAwards from the Professional Golfers'Association (PGA) Tour:• Best Title Sponsor Integration• Best Promotional Idea, for theZero Waste Challenge• Best Special Event• Most Engaged CommunityZero waste to landfill with 10 percentincineration with energy recoveryclaim validation (highest designationattainable) — UL EnvironmentTop Project of the Year 2014 —Environmental LeaderBest of Our Valley Award, Best SportingEvent for 2012, 2013 and 2014 —Arizona Foothills magazineFor information on additional awards we’vereceived, visit

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 12SUSTAINABILITY KEY PERFORMANCE INDICATORSSUSTAINABILITY KEY PERFORMANCE INDICATORSKey Performance Indicators 2011 2012 2013 5Greenhouse Gas Footprint (metric tons CO2e)• Process 16,448,441 17,363,769 6 17,662,765• Transportation 7 1,773,307 1,729,547 2,114,250• Energy use 8 488,738 540,601 355,015Potential Avoided Emissions 9 (metric tons CO2e)• Renewable energy generation4,700,000 10 4,739,563 5,635,643 11• Reuse and recycling of materials 12 30,996,786 36,414,438 38,588,377• Carbon permanently sequestered 13 15,593,412 15,490,568 16,126,208Waste-Based and Alternative Energy Benefits 14• Tons of coal equivalent6,089,000 6,220,000 6,144,562Resource Savings Achieved through Recycling• Household equivalent 1.8 million 2.1 million 2.3 million• Cars off road 6.3 million 7.0 million 7.6 millionPercent of Waste Management Modern Landfills with Off-Site Contaminated Groundwater 15 0 0 0Total Recordable Injury Rate 3.1 2.9 3.1Vehicle Accident Recordable Rate (driver hours without a vehicle accident) 13,307 16 14,200 14,499Charitable Giving $13,983,472 $15,097,964 $13,984,882

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 13ABOUT THIS REPORTABOUT THIS REPORTThrough subsidiaries, Waste Management provides wastereduction consulting, collection, transfer, recycling, conversion,resource recovery and disposal services to residential,commercial, industrial and public-sector customers throughoutNorth America. We serve over 21 million customers withenvironmentally sound management of solid wastes and thetransformation of waste into usable resources.We publish a detailed sustainability report every two years.This report updates our 2012 Sustainability Report, providingfull-year data for 2012 and 2013 and discussing keydevelopments in 2014 where information was available priorto publication. Notes on the scope of the data are includedwith the data charts or in endnotes. This report covers WasteManagement’s wholly owned operations, all of which arelocated in North America. An Appendix to this report, containinga wealth of supplementary information, can be found onour website.We focus our reporting on the following themes, which wehave identified through internal and external consultation to bethe most material:• Focusing on our customers’ sustainability needs• Reducing and recycling wastes generated by others• Converting waste into renewable energy, fuels and chemicals• Managing our waste treatment, materials processing anddisposal facilities to exceed regulatory obligations• Serving as responsible stewards of the landWe routinely engage with stakeholders to re-evaluate thesufficiency and appropriateness of our goals and reporting.GLOBAL REPORTING INITIATIVEThis report is aligned with the Global Reporting Initiative (GRI)G3 Sustainability Reporting Guidelines at a self-checkedapplication level of “B.” The Appendix contains a completeindex of GRI indicators. More information on GRI and theapplication levels can be found on the GRI website.CONTACT USWe welcome your feedback on this report,as it helps us to improve future reports.Please contact:TONI BECKVice President, Corporate Communications andCommunity 394-5093SUE BRIGGUMVice President, State and Federal Public 639-1219


WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 15INTRODUCTION TO THE CIRCULAR ECONOMYWhat if everything could be reused? No longer simply thrown away, but productivelyrecaptured for a new use? In other words, what if waste as we know it disappeared?From families that recycle diligently tobusinesses operating more sustainably,the world is beginning to view wastedifferently. So is Waste Management.We have decades of experience identifyingsafe, end-of-life solutions forwaste. Increasingly, we are turning ourattention to giving that waste new life— contributing to a circular economywhere more waste has a chance to bereclaimed, re-entering the supply chainas recycled material, electricity or fuel.Much of what gets thrown away canhave a second act. However, extractingthe most value from waste requiresexploring possibilities throughout thefull value chain. We are working hardto expand and improve recycling,transform organic materials into usefulproducts and energy, and extract energyfrom residual waste — with customersas our partners. We’re even workingwith customers to redesign their productsand services to generate less wastein the first place.REDUCING WASTEWaste ManagementSustainability Servicespartners with customersto “design with intent”and reduce the waste ofwater, energy andnatural resources.GROWING RECYCLINGWaste Management works toincrease recycling volumeswith single stream and otherspecialty recycling services.EXTRACTING VALUEFROM ORGANICSWaste Management converts organicwaste to beneficial uses such ascompost, mulch and green energy.REDUCING RESIDUALSWaste Managementcontinues to identifyways to reduce residualwaste that is destinedfor the landfill.RECOVERING ENERGYFROM WASTEMATERIAL ENTERINGTHE CYCLEWaste Management recovers energyfrom hard-to-recycle materialsthrough waste-to-energy processingas well as converting plastics andother types of waste into fuel.HARNESSING ENERGYAT THE LANDFILLWaste Management convertslandfill gas into energy andtransportation fuel.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 16INTRODUCTION TO THE CIRCULAR ECONOMYInvesting in newtechnologies to turnresidual waste into fuel,energy and chemicalsCUSTOMER CONSULTINGWorking with our customersto minimize waste entering thewaste stream?EDUCATING CONSUMERSHelping consumersunderstand what to throwin their recycle binIt will take creative approaches tohandle the range of materials ourcustomers can repurpose. We havebeen evaluating dozens of newtechnology options for the conversionof waste into products andenergy. While identifying winningtechnologies and transitioning tothem has proven to be more challenging— and much slower — thanwe originally envisioned, we havelearned much and made clear, incrementalprogress.Transforming organic wasteinto compost, soil amendmentproducts and clean energyPROCESSING RECYCLING, ORGANICS AND RESIDUALSWE DON'T JUST PICK UPWASTE — WE INNOVATETO MAXIMIZE ITSPOTENTIAL VALUE.Evolving processing technologyto maximize recycled commoditiesavailable to the marketMeeting customer needswith efficient recyclingand organics collectionWASTE COLLECTIONWe also partner with customers toshare best practices to avoid creatingwaste at all, and to design goods andpackaging for improved recyclability.This “design with intent” holds greatpromise for our efforts to movetoward a true circular economy.We want to create the partnershipsand technologies that enable us torecycle everything we can and findopportunities to extract energy fromeverything else. We are committed forthe long term and are excited aboutthe possibilities of playing our part tobring the circular economy to life.


WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 18REDUCING WASTEOperating more sustainably is a goal for many Waste Management customers.Sustainability goals can be as complex as addressing climate change or as simple asincreasing recycling. Waste Management Sustainability Services (WMSS) works closelywith customers — from those just starting on the path toward sustainability to othersalready far into the journey — to create customized solutions that help them reducewaste of resources, water or energy.Before materials end up in the waste stream, there are oftensteps that can be taken to eliminate the creation of the wastein the first place. The services WMSS provides are as variedas our customers and include everything from basic auditsand waste assessments to complex, fully managed programsto help manufacturers achieve zero waste. With over 175on-site programs, customers turn to WMSS to help designenterprise-wide sustainability goals and strategies, reducematerial use, maintain compliance, improve recyclability andcommunicate results.WMSS originated in 1997 and has held various names —from In-Plant Services to Upstream to Green Squad. TodayWMSS is made up of close to 400 professionals committedto innovative approaches to sustainability. Since WMSSbegan tracking customer savings in 2003, our experts havedelivered more than $144 million in bottom-line value byincreasing recycling and reuse and implementing processimprovements and other operational efficiencies.DESIGN WITH INTENTEvery day, countless tons of valuable materials are sent to alandfill instead of being returned to the value chain.The reasons for this are many. Sustainable design initiativesoften focus on reducing the amount of material and embeddedenergy in a product, but not on making the product —and its packaging — recyclable. Designers may work withtraditionally recyclable materials but combine them in waysthat make them difficult to disassemble, compost or recycleat end-of-life.“Design with intent” aims to make products more sustainableand recyclable from the outset, taking a systems-thinkingapproach to product design. This approach considers threefactors: material selection, ease of disassembly, and recyclinginfrastructure capabilities. The ultimate goal is to ensure thatresources return to the value chain after a product’s use.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 19REDUCING WASTEWMSS SERVICES AT A GLANCEDesigning for RecyclabilityWhen a customer wants to eliminatewaste, sometimes the best way to beginis “from the dumpster up.” That is, itpays to think through where a productgoes when discarded, to understandhow the material can successfully berecycled, or to determine if the wastecreated can be eliminated altogether.In June 2013, Waste Managementand William McDonough teamed upto announce the Waste ManagementMcDonough Sustainable InnovationCollaboration. The partnership’s missionis to work with retailers, producers,manufacturers and suppliers to fosterproduct and packaging design innovations,also known as “design with intent,”to increase recyclability and lessenwaste (see p. 18). The collaborationmarries our practical knowledge ofrecyclability and logistics with WilliamMcDonough’s widely heralded designand materials science expertise.Testing Existing Productand Package RecyclabilityCustomers seeking brand distinction byoffering recyclable products or usingrecyclable packaging need to know iftheir claims match what happens whentheir materials are, in fact, placed intothe recycling bin. WMSS takes productsthrough a typical recycling process to seewhich components can and cannot berecycled and to learn if there is a viablemarket for post-consumer materials inthe recycling commodities markets.Creating Zero Waste SystemsIncreasingly, companies and organizationsare setting ambitious “zero-waste-to-landfill”goals. WMSS helps customers achievethese goals by developing detailed roadmapsfor eliminating waste and executingthis strategy on-site, often reducing sourcematerial and increasing recycling.Designing Events andVenues to Reduce WasteRecycling in large stores, on collegecampuses or in public venues takesstrategic planning. WMSS providespractical guidance about what can berecycled, helps to maximize recoverywith strategic placement of recyclingbins and supports cost control throughcareful program design and implementation.Our signature event, TheWaste Management Phoenix Open, hasachieved zero waste goals despite beingthe best-attended event on the PGATour (see p. 41).Analyzing, Improving and Reportingon Sustainability ProgressReporting progress toward sustainabilitygoals creates a virtuous cycle that caninspire employees and urge competitorsto improve their own sustainabilityfootprints. WMSS offers customers a

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 20REDUCING WASTEnumber of tools to measure, and thencommunicate, achievement:• Life cycle assessments can compilethe “big picture” on a product’s environmentalimpacts, by evaluating allstages of a product’s life — includingraw material extraction, manufacture,distribution, use, repair and maintenance,and end disposal or recycling— and analyzing which stages havethe greatest potential to avoid greenhousegas emissions or conservenatural resources. See our Life CycleThinking report for more.• Vendor scorecards help our customersassess whether vendors meettheir supply chain sustainability goals,including compliance with sustainablepurchasing policies and packagingrequirements. The scorecards canthen be used to create more sustainablepurchasing programs, improve thedesign of products and packaging andeliminate waste.• ENSPIRE, Waste Management’sonline business intelligence platform,aggregates and repackages raw sustainabilitydata into one interactivedashboard, helping to accuratelytrack financial, environmental and socialperformance; facilitate streamlineddecision making; and simplify reporting.WASTE MANAGEMENT’S ENSPIRE BUSINESS INTELLIGENCE PLATFORMTRACKS SUSTAINABILITY GOALSMATERIAL STREAMS• Waste stream detail analysis• Diversion• Tonnage trendsPEOPLE, PLANET, PROFIT METRICS• Sustainability project analysis• Cost trendsENVIRONMENTAL FOOTPRINT• Energy and water consumptionand intensity tracking• Normalized comparison across portfolio• Certification tracking• Compactor average tonsand service frequency• Waste reduction programimplementation• Savings trends• Pre-certification gap analysis• Portfolio performance• Zero waste initiatives• GHG calculationENTERPRISE-WIDE SUSTAINABILITY PLANNING• Frameworks for GRI standards• Scorecards• Supply chain management(key performance indicators)

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 21REDUCING WASTEAssisting with Third-Party VerificationIn a consumer landscape swimming with“green” claims, many of our customersseek external verification of their effortsto reduce waste, save energy and achieveother sustainability goals. WMSS servesas a guide through this process, includingadvising on these third-party rating andcertification systems:BOMA 360, from the Building Ownersand Managers Association International,for validation of best-in-class managementpractices in building operations andmaintenance; safety, security and riskmanagement; training and education;energy, environmental and sustainabilityefforts; and tenant relations and communityinvolvementCouncil for Responsible Sport certificationsthat maximize opportunities atsporting venues to both recycle on-siteand educate attendees about recyclingENERGY STAR certification, includingbenchmarking with the ENERGY STARPortfolio Manager® and validatingapplicationsUL Environment Zero Waste ClaimValidation, certifying best-in-classzero waste and zero-waste-to-landfillprogramsLeadership in Energy and EnvironmentalDesign (LEED), using our accredited consultantsto certify entire green buildingprojects or obtain individual creditsGreen Globes certifications, a webbasedprogram from the Green BuildingInitiative for green building guidanceand certification that includes anon-site assessment by a third partyfor new buildings, renovations, buildingmanagement and moreFor more information, visit WasteManagement Sustainability Services.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 22REDUCING WASTEHELPING OUR CUSTOMERS REACH THEIR SUSTAINABILITY GOALSWe work with our customers to find ways to expand and improve recycling,transform organic materials into useful products and energy, and turn wasteinto energy. Below are just some of the projects through which we havehelped customers meet their sustainability goals for one or more locations.Our website contains select customer case studies.AUTO MANUFACTURERSConverted morethan 1,500 tons oftrash to energyExceeded 10% waste-to-landfillreduction goal with a 14% actualreductionRecycled 1,210 tons ofcardboard and 123 tonsof used oilRETAILERSDiverted 275 tonsof food waste from landfillfor conversion to compostRecycled morethan 27,900 tonsof commoditiesand materialsRecycled 38 tonsof cooking oilMUNICIPALITIESDiverted 10 to 12 million tonsof waste from landfill each weekUsing CORe equipment (see p. 44),piloted a project that at full scale willproduce renewable energy sufficientto heat over 5,000 homes andreduce GHG emissions by 90,000metric tonsReceived state Governor’s SustainabilityAward for partnership with WasteManagement that increased recyclingvolumes by 34% over 2 years and saved81 tons of CO2 emissionsUTILITYAchieved beneficial use of500,000 tons of coal combustionbyproducts projected for 2014SPORTING EVENTHelped obtain “goldcertification” from theCouncil for ResponsibleSport for efforts toincrease recycling anddiversion rates

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 23REDUCING WASTEUNIVERSITIESAchieved a 67% recyclingrate on the way toward an85% goal for 2014Saw waste diversion rocketfrom 40% to 83% in justone football seasonMore than doubled therecycling rate from under20% to 54.5% in 6 monthsRECYCLING EXCHANGE CUSTOMERSRecycled 179 million pounds of materials thatearned customers $4 million in rewards by the2013 anniversary of this partnershipCONFERENCEDiverted nearly 285,000 tons ofmaterials from local landfills sinceproject inception in 2011FOOD PRODUCERReduced carbon footprint by15,000 metric tons per yearby using landfill gas to powergreenhouseCONSUMER PRODUCT MANUFACTURERReviewed more than 15 consumer products forways to increase packaging recyclability under“real life” conditions at the typical materialsrecovery facilityREAL ESTATE COMPANYDiverted 6.34 millionbags of trash fromlandfill in 1 yearTIRE MANUFACTURERAchieved first-ever zero-waste-to-landfillvalidation from the global independentsafety science company UL EnvironmentAPPLIANCE MANUFACTURERAvoided 15,668 metric tonsof greenhouse gas emissionsAchieved 50% improvementin diversion in the first yearof a new recycling programMETALS MANUFACTURERIncreased diversion fromlandfills up to 50% withon-site managementprogramCHEMICAL COMPANYReduced disposalcosts by 10%HEAVY EQUIPMENT MANUFACTURERSaved $1.9M in waste handlingcosts in 2012-2013, and bythe end of 2014 will have 6 sitesachieving over 90% diversionto compost


WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 25GROWING RECYCLINGWaste Management handles more residential recyclablesthan any other company in North America, andwe continue to invest in new recycling technologies andservice platforms for standard as well as hard-to-handlehousehold and commercial materials.As the recycling landscape has evolved in recent years— for instance, with an increase in nonrecyclable itemsending up in the recycling bin — we are working toeducate consumers not only about the benefits of recycling,but also about what can and cannot be recycled.We have also supported the development of severalconsumer products that contain a high percentageof recycled content. And we continue to sponsor theWaste Management Phoenix Open golf tournament,which serves as a model for how to achieve high recyclingrates at a large-scale public event.88%increase in amount ofrecyclables managed from2007 to 201315Mtons of recyclables extractedfrom the waste stream in 2013133materials recovery facilitiesowned by Waste Managementas of mid 2014Of these,49are single stream facilities and15are for construction anddemolition waste

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 26GROWING RECYCLINGRECYCLINGWaste Management Recycling mix 2013EXPANDING OUR RECYCLINGCAPACITYWe are well on our way to achieving ourgoal to manage more than 20 million tonsof recyclable materials per year by 2020.In 2013, we extracted 15 million tons ofrecyclables from the waste stream —an 88 percent increase over our 2007baseline and a 16 percent increase in justthe past two years. That 15 million tonsincludes recyclables handled at the 120materials recovery facilities (MRFs) weowned as of year-end 2013, as well asrecyclables that we brokered and collectedfor processing at MRFs we do not own. Italso includes 2.5 million tons of organics.During the reporting period, we continuedto invest in new recycling capacity. InJanuary 2013, for instance, we acquiredthe recycling and resource recoverycompany Greenstar, LLC, and incorporatedtheir 12 MRFs into our portfolio.WASTE MANAGEMENTRECYCLING MIX 2013(tons)Cardboard 3,161,986Newspaper 2,183,749Mixed paper 2,394,270Office paper 1,219,969Mixed organics 2,480,146Glass 863,192 Construction & 828,625demolition waste Metals 724,610 Plastics 431,968 Mixed recyclables 652,595 Other 62,032Total Tons Recycled 17 15,003,141THE ENVIRONMENTAL BENEFITS OF RECYCLINGIn 2013, Waste Management recycled 12.451million tons 18 of aluminum, cardboard, paper, scrapmetals, plastics, wood pallets and glass. Thoserecycling efforts saved the following resources:43.4Bkilowatt-hoursof electricity123Mmature trees62.7Mgallons ofwater38.6Mcubic yards oflandfill space29.8Mmetric tonsof CO 2 e

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 27GROWING RECYCLINGMINING OUR TRANSFER STATIONSAND LANDFILLS FOR RECYCLABLESAlthough recycling rates have risen over theyears, plenty of recyclable materials still endup at our transfer stations and landfills. Toaddress this, we now “mine” the waste atmany of our facilities for cardboard and metalthat can be resold and recycled. This effortenables us to extract value from the wastestream while also reducing greenhouse gasemissions associated with using virgin materialsin manufacturing.We began mining in 2011 with a focus onpulling cardboard from our transfer stations.We developed a “playbook” for employeesand provided on-site coaching on how to dothis work. In 2013, we turned our focus tolandfills and expanded the range of materialsmined (at both our landfills and transferstations) to include metals. Again we createda playbook for employees, who werealso trained in the use of a small excavatorequipped with a grapple magnet, which canpull metals from the waste. To date, we aremining materials at 117 of our transfer stationsand 21 of our landfills.recyclingANNUAL VOLUMES OF PAPER AND METALDIVERTED Annual Volumes AT OUR of TRANSFER Paper and Metal STATIONS(tons)Diverted at Our Transfer Stations [chart]20112012201340,487179,476249,441

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 28GROWING RECYCLINGINCREASING SINGLE STREAM RECYCLINGOne of the primary drivers behindthe growth in our recyclables businesshas been the increasing popularity ofsingle stream recycling. Single streamrecycling allows customers to mixrecyclable paper, plastic, metal and glassin one large cart, rather than sortingthese items into separate smaller bins.These mixed materials are then sortedat our MRFs.Back in 2001, we became the first majornational solid waste company to focuson single stream recycling. We continueto invest in it, and about two-thirds ofour residential recycling is now singlestream. Customers tell us they love theconvenience of the large collection carts,and they respond accordingly by increasingthe amount of material collected byan average of 40 percent. Studies showthat a transition to cart-based, singlestream recycling (from dual streamcollection) is the most effective way toincrease recycling.Single stream has other benefits as well.A 2010 study by the Earth EngineeringCenter at Columbia University thatcompared single stream to dual streamrecycling found that single stream saved0.901 metric tons of GHGs per tonof recyclables collected. This was duelargely to the increase in recycling rates(and consequent reductions in the useof virgin materials for new products),as well as collection and processingefficiencies. Single stream recycling alsohas been shown to improve on-the-jobsafety for waste collection workers.In Madison, Wisconsin, the switch toautomated, single stream collection ledto a 36 percent reduction in on-the-jobinjuries, and increased automation atthe MRF decreased job-related injuriesthere by 69 percent.While the benefits of single streamrecycling are clear, the process has alsoresulted in some unintended consequences.One is that consumers canget confused about exactly what isrecyclable and what is not, and some erron the side of throwing almost everythinginto the cart and presuming it is allrecyclable. That false presumption hasled to increased contamination in theloads coming into our MRFs, which, inturn, has led us to realize that there is aneed for greater public education aboutrecycling — including how to recycle(see p. 33).SINGLE STREAM RECYCLING COMPAREDTO MULTI STREAM40%increase incollected materials0.901metric tons GHGs savedper ton of recyclables36%decrease inon-the-job injuries

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 29GROWING RECYCLINGA TYPICAL SINGLE STREAM RECYCLING FACILITYMATERIAL IN-FEEDTrucks are weighed and directed to the tip floor.Material is unloaded, inspected and stored, untilit’s ready to be fed to a conveyor.PRE-SORT STATIONSSorters remove rejected items and film, which isvacuumed away. Bulky materials, inert materialsand large pieces of plastic are also removed and insome cases sent for additional recycling.CORRUGATED SCREENSMaterial crosses a triple-deck oldcorrugated cardboard (OCC) screen, whichskims off the OCC from the rest of thematerial stream. The OCC floats over thescreen, where it is inspected before beingconveyed to storage bunkers.STEEL MAGNETNext, a steel magnetremoves and storesferrous materials fromthe material stream.PAPER MAGNETMaterial left in the main flow is now mostly containers. Thesematerials flow over a paper magnet, designed to extract paperfrom the stream. It uses powerful vacuum technology to holdtwo-dimensional paper flat to the conveyor, while round threedimensionalcontainers continue on the flow.GRAPHIC CONTINUES ON THE NEXT PAGENEWSPAPER SCREENSAt this stage, the materials pass through a seriesof disc screens, which separate containers, cansand bottles from old newspapers and removeany remaining fiber material.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 30GROWING RECYCLINGGLASS SORTERWhole glass bottles are broken and fedvia conveyor belt to the glass crusher,which crushes the glass and moves it toa storage area.OPTICAL SORTINGBottles and cans that make it through the glasssorting area run through a series of optical scanners.These scanners separate out the last of the paperfrom the commingled stream, as well as PET soda/water bottles, HDPE milk/detergent bottles, andaseptic milk/juice cartons. Each are stored separately.EDDY CURRENTThe remaining material is delivered to aneddy current that automatically separatesaluminum by use of a rare earth electrocurrent, which repels the aluminum over abaffle where it drops to a chute and is blowninto a bunker for storage.SHIPPINGBales are shipped via truck, rail or ship toend users around the world, where theyare used as feedstock for new products.FINISHED PRODUCTForklifts move the bales to a finishedproduct storage area where they arechecked for quality.BALINGInterior storage bunkers accumulate large quantities of eachseparated material stream, which are subsequently processedin ultra-high-efficiency equipment for compaction into “bales”for shipment to end-use markets.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 31GROWING RECYCLINGCHANGES AND CHALLENGESAT OUR RECYCLING FACILITIESWe are committed to investing inand increasing the productivity ofour recycling operations. Significantrecent changes in the larger recyclinglandscape have posed challenges wemust overcome.CARDBOARDWe process a greater number of cardboardboxes from the residential stream due to thegrowth in e-commerce (i.e., mail order).GLASSGlass still makes up the second-largestproportion of recycled material, but itsuse has dropped over the years. Glass isa low- or negative-value material — inmany places, we are charged to recycleit because there is no marketable use forit near our facilities. Also, crushed glassis very abrasive and sharp and thereforehard on our equipment.PLASTICThe amount of plastics in the waste streamhas risen. The type of plastics has evolved aswell, with more mixed and colored plasticsending up in the recycling stream. In addition,plastic containers have been “lightweighted”by manufacturers — for example,plastic water bottles weigh as much as 25%less than they used to weigh. While this hasmany benefits, including reduced shippingcosts and GHG emissions for manufacturers,the greater volume of lighter-weight plasticsin the waste stream means that we have toprocess more bottles to get a ton of material.Since our costs are incurred by the amountof material (volume) that we process,while our revenue is paid on weight, ourcosts per ton of material processedhave increased.METALMetal volumes and values have remainedfairly consistent. Aluminum remainsthe highest value material for recyclingbecause it has many uses (e.g., for cans,electronics and, increasingly, automobiles),and it can be recycled repeatedlywithout diminishing in quality.PAPERPaper consumption and recycling aredown, due in part to a 50% reductionin newspaper readership over the pastdecade. Our MRFs were built to process80% paper and 20% containers. Todaywe are processing 60% paper and40% containers at many facilities, andthis change is inconsistent with ourfacilities’ designs. Of the paper we stillreceive, less of it is the newspaper thatwas once an important component ofour recycling feedstock.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 32GROWING RECYCLINGReducing NonrecyclablesNonrecyclables, or contamination in thewaste stream, have increased over theyears. We receive more nonrecyclableplastics, liquids and food-contaminatedcontainers than ever before. We alsoreceive odd and awkward nonrecyclables,such as bowling balls, garden hosesand electrical cords. The loads cominginto our MRFs now average 16 percentcontamination, although the percentagemay be as high as 50 percent insome locations. As a result, our MRFprocessing costs have increased significantlyover the past two years. Plasticfilms and bags are another key form ofcontamination. They get tangled in ourequipment, and our crews must stopour machinery six to eight times a dayto cut them out — a waste of time andmoney. Even though in some places weaccept bundled plastic bags, we encouragecustomers to return their bagsto retail collection sites instead. Themarket for clean, dry plastics collectedin retail take-back programs is robust,while bags collected in curbside programsare wet and dirty and generallyare not recyclable.Increasing DemandAt the same time, demand for clean,uncontaminated recyclables has grown.In 2013, the Chinese government beganenforcing import regulations, known asOperation Green Fence, that prohibitthe shipment of mixed plastics andplace limits on contamination and moistureloads in paper. As a result, overallshipments to China have decreased(although ours have stayed about thesame), and recycling processing costshave increased, as recyclers like us havemade adjustments to adapt. All told, weexport about a third of our recyclablematerials — mostly to China, though toother countries as well.6 TO 8times per day our recycling crewsmust cut out plastic bags and filmthat jam our machinery

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 33GROWING RECYCLINGEDUCATING CONSUMERS ABOUT RECYCLINGTHREE KEY STEPS TO “RECYCLE RIGHT”The public has clearly received the message thatrecycling is important. But the uptick in nonrecyclablematerial and contaminants at our MRFs has made usrealize we need to add another element to the “recycleoften” message — that is, to “recycle right.” We thuslaunched a new consumer-focused campaign in 2013called Recycle Often. Recycle Right. SMThe campaign is intended to help consumers understandhow important it is to recycle often and to recycle theright things. In 2013, we worked with outreach specialistsboth inside and outside the company to develop aneducational toolkit, using proven tactics from the field ofcommunity-based social marketing. The toolkit includesgraphic-based brochures and posters, websites, advertisements,radio clips, blogs, videos, local news articlesand community events, as well as articles in nationalpublications, to spread the message. 19We believe that recycling education is a sharedresponsibility with our municipal partners, and we arenow working to share the toolkit broadly with customersand government agencies across the country.Our investment in the Recycle Often. Recycle Right. SMeducation program will help to ensure we are able tomaintain the quality of recyclables being collected andis an important step in the evolution of sustainablesingle stream recycling programs.123Recycle all bottles, cansand paperKeep items clean and dryNo plastic bagsBy simplifying our messaging to focus on the most commonrecyclable products, providing rules on how to recycle, andinspiring participation, Waste Management hopes to drive theright behaviors to meaningfully impact the amount of usablematerials diverted from landfills.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 34GROWING RECYCLINGCreating Recycling Rock StarsIn another recycling education effort, wesponsor a program for schoolchildren inthe Pacific Northwest called RecyclingRock Star. Developed in consultationwith Snohomish County, Washington,and early education and multiculturaloutreach experts, the program includesschool assembly presentations, classroomworkshops and technical assistanceto schools.The assemblies include a live theatershow for grades K-6 about waste preventionand recycling. The classroomworkshops combine hands-on activitieswith group games designed to getstudents to explore the impacts of theirchoices. In 2013, more than 6,000students and teachers took part in oneof the workshops.Technical assistance is also offered toschools that would like to move fromlearning to action. We provide hands-onassistance relating to waste preventionand recycling, including site visits, materialssuch as containers and signs, datatracking and educational materials.Could Extended ProducerResponsibility PoliciesIncrease Recycling Rates?Extended producer responsibility (EPR) is apublic policy mechanism that puts responsibilityon manufacturers to take back andrecycle their products at the end of theiruseful lives. EPR has been employed in casesof hard-to-handle or toxic materials, such aspaint, batteries, e-waste and sharps, amongother items.The question sometimes arises: Wouldexpanding EPR to include traditional recyclables,such as paper and plastics, helpto increase recycling rates? The evidenceseems to indicate that it would not.High recycle rates with no EPR incentive:CITIES WITH NO EPR POLICYBUT HIGH RECYCLING RATESCanada and certain European countries, forexample, have had EPR policies in place foryears but still have low recycling rates (under30 percent). European countries with highrecycling rates may have EPR policies, butthey also have high tip fees for landfill disposaland bans on landfilling certain materials. In theUnited States, several municipalities (notablySan Francisco, Portland and Seattle) haveachieved high recycling rates without EPRpolicies.In short, increases in recycling most oftencome about due to public education, singlestream recycling, “pay as you throw” systems,municipal mandates and incentives — not EPR.SAN FRANCISCO, CA PORTLAND, OR SEATTLE, WA

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 35GROWING RECYCLINGINCENTIVIZING RECYCLINGIn 2013, we entered our third year asan investor and partner with RecycleRewards, Inc., whose subsidiary,Recyclebank®, educates and engagespeople around curbside recycling andrewards them for taking small stepstoward a more sustainable lifestyle.Since announcing the investment, wehave provided more than 100 communitieswith access to Recyclebank’sbehavior change platform, leveragingeducation, outreach and rewardsto drive real-world impact. The effortbrings together Waste Management’scurbside collection infrastructure withRecyclebank’s vast online community,home recycling incentives and educationplatform, enhancing growth prospectsfor both companies and motivating andmobilizing more people and communitiesto recycle.Recyclebank uses a mix of education,personal metrics and incentives fromits reward partners to drive behaviorchange. Members learn how to makesmarter, more sustainable choices andare rewarded with points that can beredeemed for discounts and deals intheir communities and with nationalbrands. In 2014, Recyclebank, an online shop whereresidents and members can discovercarefully vetted products that are betterfor them, their homes and their wallets.Members can use points they haveearned from their recycling and othergreen actions at the checkout for savingsof up to 25 percent.Since Recyclebank’s founding, its 4.5 millionmembers have been rewarded for recyclingnearly 2.3 billion pounds of wastein 300 communities. Recyclebank hasearned a number of accolades over theyears, including recognitions from theWorld Economic Forum, the UnitedNations Environment Programme, theU.S. Conference of Mayors and the nonprofitorganization B Lab.100+communities have access toRecyclebank’s green education,outreach and rewards program4.5Mmembers have been rewardedfor recycling nearly2.3Bpounds of waste in300communities since its creation

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 36GROWING RECYCLINGEXPANDING RECYCLING OFHARD-TO-HANDLE MATERIALSRecycling everything we can requiresgoing beyond the cart or bin on the curb.To help our residential and commercialcustomers avoid tossing hard-to-recycleitems in the trash, we have several initiativesdesigned to improve product reuse,recovery and recycling.Recycling Electronic WasteOver the past several years, recyclingoptions for cell phones, ink and tonercartridges, computers and other electronicshave increased. Many of theseproducts or their component parts cannow be recycled or reused. But whendisposed of improperly, they can leaktoxins into the environment.Waste Management operates severalhousehold product recovery businesses,and in recent years we began consolidatingthem under one organizationalumbrella called the Product RecoveryGroup. Our Product Recovery Groupnow includes the following:• Tracker Services, which providesmail-in recycling for compactfluorescent bulbs, fluorescent tubes,batteries, small electronics and othercommon wastes• ReCommerce, which resells workingelectronic devices — cell phones,tablets, computers, iPods, etc. — aswell as ink jet printers and cartridges• E-cycling, which tears electronicsdown to individual parts and sellsthem for their commodity valueIn 2013, Waste Management recycledor resold 35,235 tons of these items,collected from cities, counties, andcommercial and corporate partnersacross North America.Our Loveland, Colorado, ReCommercefacility processes cell phones, laptopcomputers, iPods, tablets, and ink jetand toner cartridges for recycling orresale. The site earned ResponsibleRecycling (R2) and Recycling IndustryOperating Standard (RIOS) certifications.R2/RIOS is a major certificationprocess that covers, among other things,the way that e-waste is separated fromtraditional waste streams to ensure thatmaterials such as lead, mercury andcadmium are handled properly.IN 2013, RECOMMERCE PROCESSED:1.4Mcell phones2.4Mink jet andtoner cartridges90Klaptop computers4Ktablets27KiPods

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 37GROWING RECYCLINGPRODUCT RECOVERY GROUP OPERATIONSSurrey, British ColumbiaEdmonton, AlbertaCalgary, AlbertaAuburn, WALaval, QuebecJanesville, WIBrampton & Barrie,OntarioHolliston, MASaddle Brook, NJFresno, CALoveland, CO (2 Facilities)Aurora, COPlainfield, INGlendale, AZPhoenix, AZFlower Mound, TXBadin, NCWillamston, SCWM ReCommerce OperationsWM Lamptracker ProcessingWM Consolidation CenterWM Certified eWaste PartnerOur electronics recycling facilities havealso earned the Basel Action NetworkeStewards certification, as well as ISO9001 and 14001 certifications. Thesekinds of external verification of facilities’environmental and social practices areimportant to customers with sustainabilityand risk mitigation programs.We work to ensure employee recyclingof electronics as well, with an internalelectronics recycling program for WasteManagement offices.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 38GROWING RECYCLINGProviding Convenient, Home-BasedPickup for Hazardous Household WastesWaste Management’s At Your DoorSpecial Collection SM service providesour residential customers with an easy,safe and responsible way to disposeof the difficult, sometimes hazardous,and hard-to-recycle items that almostevery household accumulates. At YourDoor Special Collection collects automotiveproducts, automotive andhousehold batteries, garden chemicals,household chemicals, paint products,electronics, and other materials such asfluorescent lamps (CFLs and tubes) andthermometers.The materials gathered through theservice can often be recycled safely. In2013, more than 86 percent of materialscollected by the At Your DoorSpecial Collection program were sentfor recycling. Sometimes this materialgoes to Waste Management recyclingfacilities; other times it is recycled bythird-party vendors.At Your Door also offers safe and convenientmanagement of home medicalwaste such as needles and lancets.Municipalities sponsor this drop boxprogram in partnership with WasteManagement, enabling residents toeither place their sharps in a pre-providedcontainer and mail it back to WasteManagement, or drop off their sharps indesignated drop boxes in the community.+86%of materials collected by theAt Your Door Special Collection SMprogram were sent for recyclingSANTA MONICA OPTS FOR HOME PICKUPOF HAZARDOUS WASTESIn 2013, Santa Monica, California, shutteredits household hazardous waste center,opting instead for the At Your DoorSpecial Collection service we offer. The citypays Waste Management an annual fee soresidents can make an unlimited number ofpickup requests for paints, pesticides, automotiveproducts and other items that canbe dangerous to throw in landfills — insteadof requiring residents to cart these items toa local household hazardous waste center.The program not only reduces vehicle tripsby residents, but also saves the city roughly$100,000 a year.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 39GROWING RECYCLINGUsing DART to Facilitate “Green”Construction and DemolitionOur Diversion and Recycling Tracking Tool(DART) helps project planners, contractors,architects and building ownersset “green” performance targets andmeasure their progress during construction,renovation and demolition projects.DART is used across the United Statesand Canada to track both materialsreused on construction project sitesas well as those processed for recyclingoff-site. The diversion rates anddocumentation captured through DARTsupport LEED certification and corporatesustainability reporting.In 2013, more than 370,000 tons ofdiverted construction and demolitionwaste were tracked using DART. Ourtop 10 construction industry customersalone put more than 90,000 tonsof materials to reuse and achieved a70 percent diversion rate. These customersused DART to create diversionplans, monitor their progress and report373,934tons of constructionand demolition wastediversion were tracked usingDART in 2013their final performance on a project-byprojectbasis. With a few keystrokes,they were able to see exactly how theirproject was performing.Recycling Fly Ash for Coal Power PlantsAir pollution regulations that requireparticulates to be captured ratherthan emitted have led to an increasein the carbon levels found in fly ash, abyproduct of coal combustion. Fly ash iscommonly recycled by using it in concrete.But elevated carbon levels renderthe material less useful for this purpose.That’s why Waste Managementacquired Carbon Blocker, a patentedfly ash treatment system for coal-firedpower plants. Carbon Blocker enablesmore fly ash to bypass the landfill andinstead become a core component ofconcrete. Combining liquid chemistryand bulk powder handling, the systemcreates fly ash that can be used withpredictable performance in air-entrainedconcrete. 20 Carbon Blocker can be permanentlyinstalled at power plants.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 40GROWING RECYCLINGGETTING HIGH-RECYCLED-CONTENTPRODUCTS TO CONSUMERSWhile handling and processing wasteand recyclables remains our primarybusiness, Waste Management hasbranched out in recent years with a fewselect initiatives that help to “close theloop” on the materials life cycle — thatis, developing and marketing productsthat are eco-friendly and contain a highpercentage of recycled content.Waste Management-BrandedRecycling and Trash Bags at WalmartIn 2014, Walmart launched two newWaste Management-branded products:• Paper recycling bags (in two sizes)for residential customers to use forstoring recyclables before transferringthem to a larger recycling bin or cart.The bags, which contain facts andmessages about recycling, are a betterchoice than storing recyclables inplastic bags, which are nonrecyclableand might mistakenly make their wayto our MRFs.• Premium trash bags (in two sizes)that are made with 65 percent recycledplastic.These products will be on the shelves of1,000 Walmart stores through the endof 2014, at which time the effort will beevaluated, with the potential of morestores being added in 2015.Diverting Plastics from Landfillwith MicroGREENEvery year in America, 58 billion papercups and 47 billion water bottlesare used and thrown away. In 2010,we made a strategic investment inMicroGREEN, a company that usestechnology to turn this problem intoan opportunity.MicroGREEN’s InCycle® cups incorporateup to 50 percent recycled contentand are also 100 percent recyclablethemselves. A life cycle analysis byFranklin Associates found that theInCycle technology compared veryfavorably to other disposable cups,requiring the lowest amount of energyto produce while producing the lowestamount of total solid waste.In 2013, InCycle became the official hotcup on all Alaska Airlines flights, providingcost savings, greater stacking efficiencyand lighter-weight loads. Previously, theairline had used double-walled papercups for coffee service. The InCyclecup saves Alaska Airlines 35 percentin cup costs, while conserving naturalresources. MicroGREEN hopes to see thesame results through its recent partnershipswith United and Virgin Airlines.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 41GROWING RECYCLINGTHE WASTE MANAGEMENT PHOENIX OPENTHE GREENEST SHOW ON GRASSThe Waste Management Phoenix Open (WMPO) is amongthe longest-running events on the PGA tour, attracting morevisitors — more than 500,000 in one week — than any other.In 2013, the 78-year-old golf tournament set a sustainabilitymilestone, becoming the first sporting event of its kind to attain“zero waste” status. In 2014, we repeated this zero wastestatus, diverting 100 percent of waste away from landfills. Putin simple terms: seven days, 563,000 fans, zero waste.In total, the combined recycling, composting and waste-to-energyefforts from the 2014 event avoided 345 metric tons of greenhousegas emissions. This equates to saving:632mature trees369Kgallons of water471Kkilowatt-hoursof electricity969cubic yards oflandfill space

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 42GROWING RECYCLINGAs the title sponsor, we use the eventto showcase our mission and our zerowaste vision, diverting all tournamentmaterials through reuse, recycling, compostingor material recovery via wasteto energy.In 2012, we launched the Zero WasteChallenge, an initiative aimed at controllingevent materials and educatingattendees with an eventual goal ofsending zero waste to the landfill. We hitour goal after just two events. There areno trash receptacles on the golf course— only recycling and compost bins forall public and back-of-house operations.We work with the Council for ResponsibleSport, which formally recognizes thesuccessful completion of socially andenvironmentally responsible sportingevents. In 2013, the Council awardedthe WMPO with a Gold certification — thefirst such certification for a golf tournament.Waste Management also workswith UL Environment for a third-partycertification of the event’s diversion,achieving a 100 percent landfill diversionrate with 10 percent incineration withenergy recovery in 2014.The event won the 2014 BeyondSport Awards Environment award andwas named Project of the Year byEnvironmental Leader.Each year, we hold vendor meetings toexplain what types of materials can beused, and we train more than 1,000 localvolunteers to help fans properly disposeof their waste, from food to bottles.Learn more about the event.MATERIALS DIVERTED,2014Waste to energy 10%Recycled 51%Composted 39%RECOVERED WASTE PER ATTENDEE(pounds)2010 0.62011 1.02012 1.22013 1.32014 1.3


WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 44EXTRACTING VALUE FROM ORGANICSThe United States produces a prodigious amount of food waste and yard trimmings.Combined, these organic materials comprise about 28 percent of the U.S.waste stream, making them an important target for recapturing value. While widespreadorganic waste collection may be economically challenging in some parts ofthe country, programs to divert organic wastes from landfills have been growing incommunities where both the economic drivers and regulatory policies are favorable.Waste Management provides foodwaste collection services to more than700,000 residential and commercialcustomers and yard waste collectionto even more. In 2013, we diverted2.4 million tons of yard trimmingsand food waste for beneficial use ascompost, soil amendments and energy.As interest continues to grow, we havebeen working to expand the options forrecovering value from organic waste.COMPOSTING ORGANIC WASTEMost of the organic waste we collectgoes to facilities that create marketablecompost and soil amendment products.As of mid 2014, Waste Managementoperated or was a partner with theoperator of 39 organics processingfacilities across the country to help usmeet our customers’ organics managementneeds.Strategic partnerships with, and investmentsin, organics innovators haveallowed for expansion of our organicsservice offerings. In 2010, for example,Waste Management invested in Garick,a company that creates value-addedproducts including compost, soils,organic fertilizer, mulch products andgreenhouse growers’ blends. WasteManagement also invested in thePeninsula Compost Company, whichowned and operated the now-closedWilmington Organics Recycling Centerin Delaware.CONVERTING FOOD TO ENERGYWhile composting continues to be akey, low-cost solution for managinglarge volumes of organic materials,other technologies — such as our proprietaryCentralized Organic Recyclingequipment (CORe®) process — allowus to take advantage of the energy inorganics to produce biogas for electricityand fuel.Waste Management collects commercialfood waste (from sources suchas restaurants, food processing plants,schools and grocery stores), screensit through one of our CORe facilitiesto remove contamination (e.g., plastic,utensils, packaging, bones), and blendsthe waste into an engineered bioslurrysimilar in thickness to cooked oatmeal.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 45EXTRACTING VALUE FROM ORGANICSWASTE MANAGEMENT ACTIVE ORGANICS RECYCLING SITES IN MID-2014Eco VistaSpringdale, ARJeffersonPine Bluff, ARSierra EstrellaMaricopa, AZLancasterLancaster, CAOrange CountyOrange, CARedwoodNovato, CAPeninsula CompostNew Castle, DEApopkaApopka, FLOkeechobeeOkeechobee, FLSmith GardenProductsCumming, GATopekaTopeka, KSOuterloopLouisville, KYChicopeeChicopee, MAFitchburgWestminster, MAVenice ParkLennon, MITarheel BarkHarrisburg, NCEvergreenNorthwood, OHPaygroSouth Charleston,OHLake ViewErie, PASouth Hills LFSouth Park, PAValley LFIrwin, PAWarner NorthTullytown, PAAlvinAlvin, TXMiddle PeninsulaSaluda, VAMetroFranklin, WIPheasant RunBristol, WIOrchard RidgeMenomonee Falls,WIThe slurry is loaded into tanker trucksat our facility for delivery to municipalwastewater treatment plants, whereit is anaerobically digested to dramaticallyincrease the production of biogas,a useful and renewable energy source.Adding just 7 percent additional organicmaterial in the form of the engineeredslurry to the plants’ anaerobic digesterscan increase energy output by over70 percent. We are still piloting thistechnology, with CORe® projects in NewYork City and Los Angeles and anotherunder development in Boston.MidwayPueblo, CONew MilfordNew Milford, CTDeKalbDe Kalb, ILLand of LakesChicago, ILMilamEast St. Louis, ILPeoriaEast Peoria, ILJulia TSElizabeth, NJHigh AcresFairport, NYDecaturevilleDecatureville, TNPoint PleasantPoint Pleasant, TNCANADAGlanbrook LFHamilton, OntarioLondonLondon, OntarioWM active siteWM partnership/GarickWM partnership/Peninsula (now closed)Harvest/WM site

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 46EXTRACTING VALUE FROM ORGANICS“WASTE-GAS-TO-GRID” PROJECTPILOT “WASTE-GAS-TO-GRID”PROJECT IN NEW YORK CITYIn December 2013, Waste Management andthe New York City Department of EnvironmentalProtection announced a partnershipto reduce the amount of organic waste sentto landfills, while also producing a reliablesource of clean energy. Waste Management’sVarick I transfer facility began usingour CORe® process to transform organicfood waste, collected from local schools,into a liquefied feedstock. The feedstock isdelivered in sealed tankers to the NewtownCreek Wastewater Treatment Plant in Brooklyn,where the slurry is added to wastewatersludge to increase the production of biogas.We are currently processing 10 tons per dayof organic waste at the Varick I facility, and ifthis phase of the project is successful, thereis potential to raise the capacity to 500 tonsper day over the next three years. This NewYork City pilot project is one of the nation’sfirst waste-gas-to-grid projects and has thepotential to reduce annual greenhouse gasemissions by more than 90,000 metric tons.WASTE-GAS-TO-GRID PROCESSResidueGridSource-Separated OrganicsCORe®Engineered Slurry TransportWastewater Treatment PlantAnaerobic DigesterBiosolids


WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 48RECOVERING ENERGY FROM WASTEAs our customers seek ways to recover value from what would otherwise be wasted,we continue to develop cost-effective solutions for creating renewable energy fromwaste. At specially designed facilities, we can capture the energy value in householdtrash as well as business and industrial nonhazardous waste — and convert it intorenewable electricity and fuel. 21GENERATING ELECTRICITY AT OURWASTE-TO-ENERGY FACILITIESOur specially engineered “waste-toenergy”(WTE) plants convert municipalsolid waste (MSW) into electricitythrough the use of carefully controlledcombustion. In 2012 and 2013, ourwholly owned Wheelabrator Technologiesunit operated 17 WTE plants. Processingmore than 23,000 tons of waste perday, these plants can produce 5.3 billiongross kilowatt-hours of power. In 2013,Wheelabrator sold more than 4.6 billionkilowatt-hours, enough to power over529,000 homes, avoiding the equivalentof burning 3.65 million tons of coal.Wheelabrator also sold 2.1 million poundsof steam in 2013, up from 0.8 millionpounds in 2007.NODE4Wheelabrator WHEELABRATOR Technologies’ TECHNOLOGIES’ WASTE-TO-ENERGY SALESWaste-to-Energy (billions of kilowatt-hours Sales sold 22 )2007 4.472011 4.702012 4.742013 4.64In 2013, that was enough energy to power529K 23homesand avoid3.65M 24tons of coal

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 49RECOVERING ENERGY FROM WASTEWASTE TO ENERGYWASTE-TO-ENERGY PRODUCTION2The combustionprocess convertswaste to steam.3Steam drives a turbineto produce electricity.1After recycling, wasteis transferred to theWTE facility.4Air-quality-control equipmentcleans emissions.5Metals are recycled.POLLUTANT REDUCTIONSPollutants% ReductionDioxins and furans 99+%Mercury 96%Cadmium 96%Lead 97%Particulate matter 96%Hydrogen chloride 94%Sulfur dioxide 88%Nitrogen oxides 24%Our WTE plants use advanced emissionscontrolequipment to meet stringent airemissions standards, providing a cleaneralternative to the use of fossil fuels. Infact, the U.S. Environmental ProtectionAgency has described WTE facilities ashaving “less environmental impact thanalmost any other source of electricity.” 25According to the EPA, MSW combustionfacilities have reduced their emissionssignificantly between 1990 and 2005. 26Many of the communities we serve withour WTE facilities have implemented progressivewaste prevention and recyclingprograms and have set ambitious goalsfor encouraging public participation andincreasing recycling rates. WTE facilitiesalso have positive economic impacts. A2013 report by Governmental AdvisoryAssociates found that the WTE sector’sdirect and indirect contributions resultedin the creation of nearly 14,000 jobs;

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 50RECOVERING ENERGY FROM WASTE$890 million in combined wages, salariesand benefits; and $5.6 billion in totalnational economic impact. 27In addition, our WTE plants can provide“green steam” — steam producedby renewable energy — to cities andfacilities. In Baltimore, Maryland, forexample, Wheelabrator has been partneringwith Veolia Energy North Americafor 28 years to supply nearly half of thesteam Veolia delivers to provide heatingto 230 customers in the central businessdistrict and Inner Harbor East.The partnership reduces Baltimore’sgreenhouse gas footprint by nearly47,000 tons of CO2e per year, theequivalent of removing 8,400 cars fromcity streets. In 2013, Wheelabrator’sWTE facility in Peekskill, New York,announced a partnership with a commerciallaundry company, White PlainsLinen, to supply steam directly to its100,000-square-foot facility. Thesteam will power laundry equipment andheating systems, reducing the facility’sannual natural gas usage by more than900,000 therms and cutting its carbonfootprint by 90 percent.PARTNERSHIP IN CHINAChina represents one of the fastest growingmarkets for environmental, energy andwaste management. For nearly four years,Waste Management has been successfullycollaborating with Shanghai Chengtou (SCH),through our investment in SCH’s ShanghaiEnvironment Group (SEG), to share bestpractices and help build and manage wasteto-energyfacilities in China. Since thepartnership began in 2010, SEG has grownfrom two to nine WTE plants in operation orunder construction. In 2013, we restructuredour partnership with SEG to convert ourequity interest to an operations and technicalservices agreement.WHEELABRATOR AWARDS IN 2012 AND 2013 HIGHLIGHT ENVIRONMENTAL STEWARDSHIPEnvironmental StewardshipWheelabrator Gloucester received anEnvironmental Stewardship award fromthe New Jersey Department of EnvironmentalProtection. The state’s stewardshipprogram “recognizes businesses thatvoluntarily take measures to go above andbeyond compliance with environmentallaws and regulations.”Distinguished ServiceThe Elizabeth River Project in Virginiaawarded Wheelabrator Portsmouth aDistinguished Service award for air emissionsand odor control upgrades, as well asa River Star award for efforts to keep theElizabeth River clean. Wheelabrator wascited as a Model Level business, the highestcategory awarded.Gold ExcellenceThe Solid Waste Association of North Americanamed Wheelabrator Spokane as the winnerof its Gold Excellence Award in the WTEcategory. The award recognizes Wheelabrator’shigh-quality service; superior technicaldesign; demonstrated excellence in health,safety and environmental compliance;and ongoing commitment to communityengagement in Spokane, Washington.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 51RECOVERING ENERGY FROM WASTEWASTE MANAGEMENT – A MAJOR PRODUCER OF ELECTRICITYAs of 2011, Waste Management was reported to be the 100th largest electric powerproducer in the United States. 28 In 2013, our WTE facilities, along with our landfillgas-to-energyfacilities (see pp. 54–55) and two biomass plants, produced 10 millionmegawatt-hours — enough electricity to power over 1 million households, or the equivalentof over 6.1 million tons of coal. Based on data from the U.S. Energy InformationAdministration, Waste Management’s total renewable energy production exceeded thatof all U.S. utility-based solar production. The federal government designates waste as arenewable energy source, just like wind or solar power. But unlike wind and solar energy,which are variable in their daily, monthly and seasonal availability, waste-based energy isa base load source, available 24 hours a day, seven days a week. 29OUT OF THE ASHESAfter energy is recovered from thecombusted waste in a WTE plant, about10 percent of the original volumeremains as ash. This ash contains recyclablemetals that can be recoveredbefore the ash is sent to landfills. In2014, to significantly enhance metalsrecycling at our WTE facilities, Wheelabratorformed a joint venture withInashco, a Dutch specialist in the recoveryof both ferrous and nonferrousmetals from the ashes of WTE facilities.The new company, Eco Recovery Solutions,will use Inashco’s patented andproprietary Advanced Dry Recoverytechnology to assist in the recovery offerrous and nonferrous metals, includingpieces of copper, zinc, lead andaluminum as small as 0.5 mm in size, aconsiderable advance compared withconventional technologies.U.S. RENEWABLE ELECTRICITY PRODUCTION IN 2013BY ENERGY SOURCENet U.S. generation (megawatt-hours)167.7Mwind9.3Msolar(utility-based)16.5Mgeothermal9.8Mlandfill gas7.3Mbiogenic municipalsolid wasteSource: Managementtotal renewable energy

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 52RECOVERING ENERGY FROM WASTECREATING FUEL FROM WASTEAs part of our efforts to convert wasteinto energy, we are pursuing innovativetechnologies to help us turn wasteinto renewable fuels. Although many ofthese technologies are still in the pilotphase and will remain so for the nextseveral years, we are excited about thepotential they hold.Converting Mixed Waste to SpecFUEL®One of our newest technologies iscalled SpecFUEL, a highly engineeredfuel that can be utilized in industrialboilers and kilns as a supplement to orreplacement for fossil fuels such as coaland petroleum coke. SpecFUEL is madefrom post-recycled mixed waste usinga 13-step process involving sophisticatedsorting equipment that removesrecyclable metals, organics, PVC plasticand inert materials that are unsuitablefor fuel. The remaining paper andplastic materials are then transformedinto uniform, high-quality, high-energycontentfuel.Using SpecFUEL in place of coal can cutemissions of air pollutants, reducegreenhouse gas emissions by 15 percenton a life cycle basis and lower overallenergy use by 52 percent. It can alsodivert up to 50 percent of our customers'waste streams from landfill disposalto beneficial reuse. Our SpecFUEL plantin Philadelphia, Pennsylvania, opened inearly 2014 and is an important part ofthe city’s sustainability initiatives. 30Converting Plastics to FuelWe have also been developing technologyto transform plastics into fuel usingpyrolysis, by which the chemical compositionof organic material is changedthrough exposure to high temperatures.The technology is ideal to recoveradditional value from hard-to-recycleplastics. Pyrolysis can transform theseindustrial and consumer plastics into ahigh-octane synthetic crude oil, whichcan be converted into ultra-low sulfurdiesel as well as other transportationfuels and petroleum products.Our first plastics recovery facility beganits start-up phase in Portland, Oregon.The largest commercially operationalwaste-plastic-to-synthetic-crude-oilfacility in North America, this facilityprocessed 848 tons of plastics into200,972 gallons of oil in 2013. The oilwas delivered to a Tacoma, Washington,oil refinery at market rates.


WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 54HARNESSING ENERGY AT THE LANDFILLMaterials that cannot be recycled, reused or converted to other uses will end up ina landfill, but they can still add value back into the supply chain. Conversion of landfillgas into energy enables these materials to be part of the circular economy.Waste decomposing in landfills naturallyproduces methane, which is themajor component in natural gas fueland also a potent greenhouse gas. Atour landfill-gas-to-energy (LFGTE)facilities, we capture this methane anduse it as an alternative energy source,reducing methane emissions andhelping to offset the impacts of energyproduction from the fossil fuels thatmight otherwise be used. As the largestLFGTE developer and operator in NorthAmerica, we harness this energy topower homes, provide fuel for industrialuses and even fuel vehicles.USING LANDFILL GAS TOPRODUCE ELECTRICITYMost of our LFGTE facilities convertlandfill gas into electricity. In 2012and 2013, we had 137 LFGTE projects,providing the equivalent of over4.6 million megawatt-hours of electricity— enough to power more than 472,000homes each year. This electricity generationreplaces the need for burning2.5 million tons of coal each year. 31WASTE MANAGEMENT LFGTEELECTRICITY PRODUCTION, 2007-2013 32Number ofprojects2007 2011 2012 2013108 131 137 137Megawatthours3.60M 4.51M 4.67M 4.63M33soldNumber ofhouseholdsthis couldpower 34 383K 466K 470K 472KCoal use thiscould avoid(tons)1.87M 2.35M 2.52M 2.50MWASTE MANAGEMENT WINS AWARDFOR LANDFILL GAS CONVERSIONIn February 2014, our Saint NicéphoreLFGTE facility in Quebec, Canada, receiveda Sustainable Action Award from the QuebecAssociation for Energy Advancement,which recognizes excellence in energy efficiencyprojects. The Saint Nicéphore projectboth produces electricity from landfill gasfor Hydro-Quebec, a local utility, and usesresidual heat created during power generationto maintain the temperature at localgreenhouses. The process works in this way:We extract naturally occurring gas from thelandfill, convert it into a fuel for our powergenerators, and send the water used to coolthe generators to greenhouses operated bya neighboring business. The heated water iscirculated to ensure an ideal ambient temperaturefor the production of tomatoes,even during the harsh Canadian winters.The process also substantially reduces theconsumption of diesel fuel normally used toheat the greenhouses, avoiding use of morethan 500,000 gallons of diesel annually.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 55HARNESSING ENERGY AT THE LANDFILLLANDFILL-GAS-TO-ENERGY PRODUCTION1The cycle begins with the collectionof residential and commercial waste.Recyclables are separated, and theremaining waste is then transportedto Waste Management landfills forpermanent disposal.2Much of this waste, including food, paperand cardboard that are not otherwisediverted, is organic in nature. Bacteria digestthis organic waste and produce methane gasand carbon dioxide as natural byproducts.5The gas is piped to an electricitygenerating plant, on-site or off-site,where it is used as fuel to turn enginesor turbines to generate electricity.Landfill gas may also be piped off-siteto industrial customers for use as analternative fuel source.4At the compression facility, thelandfill gas is de-watered, filteredand pressurized.3The methane gas is recovered via a series ofwells drilled into the landfill. These wells areconnected by a common pipe system thatcollects the gas and transports it to a nearbycompression facility.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 56HARNESSING ENERGY AT THE LANDFILLUSING LANDFILL GAS TO CREATENATURAL GAS FUELWaste Management is also pioneeringefforts to convert landfill gas intonatural gas fuels. In October 2013, ourMilam Landfill in Fairmont City, Illinois,hosted a groundbreaking ceremony foran on-site renewable natural gas facility,which will begin operations in late2014. Milam is our third project usinglandfill gas to power natural gas vehicles,in addition to our Altamont Landfillin California and a landfill in Ohio.In collaboration with Ameren Illinois, autility focusing on electricity and gasdelivery, the new Milam facility willconvert landfill gas into pipeline-readynatural gas and inject it into Ameren’sgas distribution network. The facilitywill have the ability to process approximately3,500 standard cubic feet perminute of incoming landfill gas — asmuch gas as it takes to fuel about 400of Waste Management’s compressednatural gas (CNG) collection truckseach day and more than 10 percent ofthe gas used in our entire CNG fleet.In Illinois, we currently operate morethan 100 CNG trucks, displacingapproximately 1 million gallons of dieselfuel annually. By capturing and treatingthe landfill gas rather than burning it,the facility will also reduce emissions ofcarbon monoxide, nitrogen oxides andparticulate matter from the landfill byaround 60 percent.USING LANDFILL GAS TO CREATEOTHER FUELS AND PRODUCTSAs part of our efforts to turn landfillgas into valuable commodities, we haveinvested in the development of gas-toliquids(GTL) technology. The technologyprovides a method of converting landfillmethane to syngas (a mixture of mostlyhydrogen and carbon monoxide, withsmaller amounts of carbon dioxide andmethane) and then to new, high-valuematerials for the transportation andchemical industries. This GTL technologyoffers another option for the use oflandfill gas, especially for facilities thatcannot economically convert landfill gasto electricity.In 2014, Waste Management announceda joint venture with NRG Energy,Ventech Engineers International andVelocys to use smaller-scale GTL technologyto convert landfill gas, co-fedwith natural gas, into renewable fuelsand chemicals, such as cleaner-burningdiesel and multi-purpose industrialwax. We helped to pioneer the use ofthis kind of technology by building andoperating a demonstration unit at ourEast Oak Landfill, located just outsideof Oklahoma City, which has sinceaccumulated more than 10,000 hoursof successful operation and receiveda “Greenovation” award from the U.S.Environmental Protection Agency in May2014. As part of the joint venture, thefirst commercial facility is now underdevelopment and will also be locatedat the East Oak Landfill.



WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 59SUSTAINABILITY PERFORMANCEEven as we help our customers manage their environmental impacts and opportunities,we carefully manage our own. Across the range of our operations, we strive toconserve water and energy; reduce our greenhouse gas emissions; and avoid adverseimpacts on land, water and air. We also work to enhance the communities where wedo business by preserving wildlife habitats.MANAGING WASTE DISPOSALAND MINIMIZING IMPACTSWaste Management provides solidwaste collection services to more than21 million customers in North America— from residential households to publicvenues to large companies with hundredsof locations. All told, after recycling ordiverting various materials for reuse (seepp. 14 –52), we safely manage the disposalof nearly 100 million tons of wasteannually, including common municipaltrash and highly specialized materialssuch as medical and industrial waste. Tohandle this volume, Waste Managementoperates the largest network of landfillsin our industry, and we work hard tominimize the impact of those facilitieson neighbors and the environment.Securing Waste in Modern LandfillsModern landfills are the products ofsophisticated engineering, providingboth secure containment systems forthe disposal of waste and the opportunityto capture value through theconversion of waste to energy.Waste Management’s modern landfills inthe United States were developed underthe federal Resource Conservation andRecovery Act (RCRA), which requiresrigorous siting evaluation, site characterizationand scientific engineering design,as well as a comprehensive permittingand regulatory approval process thatincludes public notification and comment.RCRA standards also require a rangeof measures to prevent environmentalcontamination, including the use ofengineered liners and covers, collectionand control systems for landfill gas, andcollection and treatment systems forleachate (water that accumulates in andpercolates through waste).Our modern sites are designed andoperated to ensure that our landfills gobeyond regulatory requirements. Wecontinually monitor and work to improvethe safety and environmental security ofour disposal facilities, and we are committedto reporting the results of theseefforts. We strive to avoid conditionsthat cause concern for neighbors andcommunities, including odors and noise,regardless of whether those conditionsare covered in our regulatory obligations.We also work with waste sector expertsto understand what happens withinlandfills after they are closed. Studies

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 60SUSTAINABILITY PERFORMANCEhave shown that modern municipal solidwaste landfills tend to improve predictablyover time, steadily producing lessgas and less (and cleaner) leachate. 35Many of our landfills are designed andmanaged to ensure they can be usedafter closure for commerce, industry,conservation and recreation (e.g., conversioninto parks for wildlife and thegeneral public). 36Protecting Surface Water andGroundwaterWaste Management utilizes extensiveengineering controls and practices toprotect surface water and groundwater,and we continually seek to improve thesecontrols and practices. Throughout 2012and 2013, we piloted and then launcheda new initiative to rethink landfill designand operation to avoid creating “contactwater,” or water that comes in contactwith waste or contaminants. We cannotstop the rain and the snow, but we canreduce the ways that precipitation seepsinto landfills. We have created a toolkitof best management practices that areEXPANDING DISPOSAL SERVICES FOR THE OIL AND GAS INDUSTRYOur new Energy Services line of business provides single source environmental managementservices to the oil and gas industry, including liquid and solid waste treatment, recycling, anddisposal processes. We ensure all waste residuals are stored in a lined, sealed and permittedlocation. In 2013, we acquired two North Dakota energy services companies, Summit EnergyServices and Liquid Logistics, to enhance our service offerings to oil and gas customersoperating in the prolific Bakken Shale formation, one of the largest U.S. oil and gas fields.being implemented first at 23 topprioritysites before being rolled outmore broadly.We maintain a comprehensive networkof more than 6,000 groundwater-monitoringwells around our facilities, andevery landfill uses monitoring strategies(many involving sophisticated statisticalevaluations) to ensure that water qualityin adjacent surface water and groundwaterbodies is not impacted. We arehappy to report that our modern MSWlandfills are all performing as designed,and not a single one has had to takecorrective actions to clean up groundwaterunder neighboring properties.To make sure that remains the case,we employ a staff of more than 100professional engineers, environmentalscientists, regulatory experts and technicianswho work to ensure that everyfacility implements best managementpractices to protect surface water,storm water and groundwater from anypotential impacts from our operations.We use managed basins, tanks, containmentstructures and separators toredirect for proper disposal and treatmentany contact water that is created.We also have been auditing our on-sitewastewater treatment plants to optimizeefficiency.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 61SUSTAINABILITY PERFORMANCEOPERATING A CLEAN ANDEFFICIENT TRUCK FLEETOur fleet of more than 32,000 collectionand support vehicles is one of themost visible symbols of our company— and a potential source of some ofthe greatest reductions in our carbonfootprint. Garbage trucks, outfittedwith heavy machinery and carrying tonsof waste, are among the least fuel-efficientvehicles on the road. The frequentstops that occur as trucks service customersalong their routes further lowerfuel economy. To reduce these impacts,Waste Management is utilizing cleanervehicles and fuels and minimizing thenumber of miles our trucks cover.Transitioning to Natural Gas VehiclesOne of our primary strategies forreducing emissions is to transition ourcollection fleet of nearly 19,000 vehiclesfrom diesel to cleaner-burning naturalgas. With more than 3,000 natural gascollection trucks on the roads in NorthAmerica, Waste Management has thelargest fleet of vocational heavy-dutynatural gas trucks in the United States.We are continuing to expand this fleetas we buy new vehicles — more than90 percent of the trucks we purchasedin 2013 had natural gas engines.When we replace an old diesel truck(2006 or older) with a new natural gasone, it reduces our diesel fuel use by anaverage of 8,000 gallons per year andour greenhouse gas emissions by about22 metric tons per year (the equivalentof a 21 percent emissions reduction pertruck). Natural gas fueled trucks are alsoquieter than diesel and cut smog-producingnitrogen oxide emissions by upto 50 percent compared to the cleanestdiesel trucks.To help others evaluate the benefits oftransitioning fleets to natural gas, WasteManagement participated in a projectconducted by the National RenewableEnergy Laboratory (NREL) to develop amodel to analyze the costs, benefits andperformance tradeoffs associated withswitching from diesel to natural gas.In 2007, we set a goal of reducing ourtotal fleet carbon dioxide emissions by15 percent below 2007 levels by 2020.Meeting that goal would reduce fuel useby 350 million gallons, reduce carbondioxide equivalent emissions by about3.5 million metric tons and save $1 billionin operating costs. We are excited toreport that we have exceeded that goaland done it several years ahead of schedule— reducing fleet CO 2 e emissions by18 percent below 2007 levels in 2013.FLEET SNAPSHOT 201332,174trucks total18,949collection vehicles3,075natural gas vehicles(year-end 2013)$315Minvestment in naturalgas vehicles1,745,919tons of CO2e emissions26hours of yearly driver trainingfor existing drivers66-106hours of yearly driver trainingfor new drivers(driver training hours includeclassroom and on-road time(see pp. 83–86))

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 62SUSTAINABILITY PERFORMANCEDiesel and natural gas collection trucks atone of our locations were outfitted withdata loggers for several weeks to gatherin-use engine performance data and toenable drive-cycle and route analysis.The data will help NREL compare differenttypes of trucks operating along theirdaily routes.We also have continued to work withthe U.S. Environmental ProtectionAgency’s SmartWay TransportPartnership, which assists companiesseeking to make improvements in theirfleets’ environmental performanceand provides models for trackingfuel consumption and efficiency. 37Waste Management, which first joinedSmartWay in 2010 and renewed itspartnership status in 2014, was thefirst company with a vocational fleet(e.g., construction, utility, refuse vehicles)to become a SmartWay Partner.We have begun tracking emissions permile for nitrogen oxides (NOx), particulatematter up to 2.5 microns and up to10 microns in size (PM 2.5 and PM 10),and greenhouse gases as an indicatorof progress in greening our fleet.WASTE MANAGEMENT EARNS 5-STAR CERTIFICATION FROM EVERGREEN FLEETSIn 2013, Evergreen Fleets, a program created by the Puget Sound Clean Air Agency andWestern Washington Clean Cities, awarded 5-Star Certification to Waste Management’sPacific Northwest Market Area. Evergreen Fleets is a voluntary certification program thatrecognizes fleets that save fuel, improve operational efficiencies and reduce harmful airemissions. The certification is based on our aggressive investments in trucks fueled by compressednatural gas instead of diesel, sophisticated software to track fuel economy and use,fuel-efficient driver training program, and green vehicle and engine right-sizing purchasingpolicies. This is our fourth year of certification and our first year achieving certification atthe 5-star level.WASTE MANAGEMENT FLEETAVERAGE EMISSIONS(grams/mile)2007 2011 2012 2013NOx 24.9 17.7 17.4 14.7PM 2.5 0.954 0.694 0.668 0.579PM 10 0.983 0.716 0.689 0.597GHG 38 3,073 3,166 3,158 3,118Our fleet average emissions are calculated across ourentire fleet of on-road diesel, gasoline, liquified naturalgas and compressed natural gas vehicles. This tablereflects the grams of emissions per mile traveled.Nitrogen oxide and particulate matter emissions arecalculated using the EPA’s 2012 SmartWay model. GHGemissions are calculated using the EPA’s SmartWaymodel for CO2 emissions and The Climate Registry’smodel for nitrous oxide and methane emissions.For more on our fleet improvements,see pp. 18–19 in the Appendix.OUR FLEET EMISSIONS OVER TIME(tons CO2e)20072011201220131,720,4301,748,0511,745,9192,125,616Emissions data have been recalculated using the 2012(most recent) SmartWay model.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 63SUSTAINABILITY PERFORMANCEHEAVY DUTY FUEL EFFICIENCYLEADERSHIP GROUP SUPPORTSNEW STANDARDSWaste Management is a foundingmember of the Heavy Duty Fuel EfficiencyLeadership Group, an informalalliance of the country’s largest truckfleets, top engine manufacturers andleading technology suppliers. In 2014,the Leadership Group released a statementof principles it hopes will informfederal regulators as they develop thenext fuel efficiency and greenhouse gasemissions standards for medium- andheavy-duty trucks, which are set to befinalized in March 2016. By contributingto the Leadership Group’s dialogue withthe Obama Administration, as well asparticipating as the first vocational fleetmember of the EPA’s SmartWay Partnershipprogram, we hope to share ourexperience and successes with federalagencies and inform rule development.Producing and Providing FuelAs we transition our fleet to run onnatural gas, we have recognized theneed for more fueling stations thatsupport these types of engines. That’swhy a core element of our fleet transitionstrategy has been building our ownfueling infrastructure — both to refuelour vehicles and to sell compressednatural gas to other commercial fleetsand individuals. In 2013, we openedour 50 th natural gas fueling station inNorth America, and by mid-year 2014,we were operating 67 fueling stationsin the United States and Canada.In partnership with our CNG stationmanager PetroCard, our stations areopen to the general public in Arizona,California, Florida, Illinois, Kentucky,Maryland, Minnesota, New Jersey, NewYork, Pennsylvania, Tennessee, Utahand Washington state, while some ofour other stations provide access forfueling by municipal bus fleets or otherthird parties.We also have plants that convert landfillgas into natural gas for use in vehicles —thereby powering trucks with the verywaste they are collecting. For instance, atthe Altamont Landfill in California we havecollaborated to build the world’s largestplant to convert landfill gas to liquefiednatural gas (LNG), producing 13,000gallons of LNG per day and helping topower truck fleets — ours and others— in California. We are also openinganother on-site renewable natural gasfacility at our Milam Landfill in Illinois,which will convert landfill gas into pipeline-readynatural gas that can be usedas a transportation fuel. (See pp. 53–56for more on the ways we convert landfillgas into energy.)Reducing Truck MilesAnother key strategy for reducingemissions from our fleet involves usingnew technologies to reduce the milesour trucks need to travel. Our ServiceDelivery Optimization (SDO) initiative,begun in 2012, helps us streamline routesfor our fleet, cutting the amount of fuelwe need and lowering our carbon footprint.Our goal is to have 80 percent ofour 15,000 collection routes optimizedwith SDO by the end of 2014.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 64SUSTAINABILITY PERFORMANCEWASTE MANAGEMENT'S NATURAL GAS FUELING STATIONSWe have found that marrying technology— such as our EfficiencyManagement and Planning (EMAP)on-board computing system — andlogistics management processes withthe skills of our drivers allows us tocover routes more efficiently. Onekey part of SDO is DriveCam, a videorecorder mounted on the windshield ofour collection vehicles that is automaticallyactivated by sudden movements (e.g.,hard braking, sudden acceleration); in somedistricts, we believe we can save as muchFleet WMRE stations Mapas 8 percent on fuel by coaching driverson proper acceleration, deceleration andspeed limits. (See pp. 83–84 for informationon the safety benefits of DriveCam.)By the end of 2013, we had deployed ourEMAP on-board computing system in87 percent of our fleet.We have also pursued innovative waysto eliminate unnecessary collectiontrips altogether. For example, our SolarCompactor, which debuted in 2009,is a self-powered, solar-poweredcompactor (developed in collaborationwith BigBelly® Solar) that uses internalsensors to determine when trash needsto be compacted, thereby giving each35-gallon receptacle a 180-galloncapacity. When the compactor is full, itwirelessly signals for pickup. The SolarCompactor reduces the number ofcollection trips required for each receptacle,which is especially valuable andneeded in high-traffic public areas andurban centers.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 65SUSTAINABILITY PERFORMANCESimilarly, our convenient Bagsterservice (also known as “dumpster ina bag”) eliminates the need to deliverdumpsters to customers by offering aconvenient and more sustainable collectionsolution for a variety of projects.Available for purchase at more than4,400 retail locations across the UnitedStates and Canada, Bagster is simpleto set up and strong enough to hold upto 3,300 pounds of debris or waste,making it suitable for anything fromhome renovations to disaster cleanup.When customers are finished withtheir projects, Waste Management cancollect up to 15 full Bagsters on a singlecollection route.ADDRESSING OUR GREENHOUSEGAS EMISSIONSEvery day, our customers approach us tohelp them address the challenges posedby climate change by reducing theirgreenhouse gas emissions. This work isalso a strategic imperative for our business.Using our own GHG footprint as aguide to identifying emission reductionchallenges and opportunities, we arecontinuing to expand the volume and

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 66SUSTAINABILITY PERFORMANCEscope of our recycling operations, exploringnew options to produce low-carbonfuels from waste, steadily converting ourfleet from higher to lower carbon fuels,improving energy efficiency, increasingour use of renewable energy and providingconsulting services to customers whowant to reduce their carbon footprints.In all of this work, we marry strategicbusiness planning with life cycle thinking,evaluating how greenhouse gas emissionscan be eliminated or sharply reduced.Three of our sustainability goals for 2020help drive progress toward GHG emissionreductions: doubling our renewableenergy generation, increasing the amountof recyclable materials we manage to20 million tons, and cutting our fleet emissionsby 15 percent (which, as notedearlier, we have already accomplished).These goals build on our tradition ofclimate leadership within our industry.Waste Management was one of thefounding members of the ChicagoClimate Exchange (CCX), and we fulfilledour commitment to the CCX by reducingour GHG emissions 6 percent below our1998–2001 baseline average by 2010.We were also a Climate Action Leader inthe California Climate Action Registry,which was succeeded by the ClimateAction Registry (CAR), where we arenow a GHG offset developer. In 2011,we generated our first verified offsetsunder the CAR protocols. In addition, weare an Emissions Performance Generatorunder the Alberta Environment GHGReduction Program, where we electedto approach compliance for our onesubject landfill facility aggressively;instead of paying an emissions fee orbuying offsets, we installed a landfill gascollection system to reduce GHG emissionsfrom the site. In 2013, we joinedthe Business Council on SustainableEnergy, a business coalition dedicated toimplementing market-based approachesto reducing pollution and GHG emissionsby providing a diverse, secure mix ofenergy resources, including renewableenergy, for consumers and businesses.Our approach continues to evolve aswe focus on implementing sustainablebusiness practices company-wide thatprovide energy, fuel and commoditysavings while reducing GHG emissions.INCREASING WASTE MANAGEMENT’SCLIMATE RESILIENCEWaste Management understands the needfor resilience in the face of a changingclimate, and we have been investing inthe infrastructure needed to enable us toperform our essential services, even in theface of increasingly severe weather events.For instance, when Superstorm Sandymade landfall in New Jersey in 2012, it hitan area where we have a very high concentrationof hauling and disposal sites.Long before it came ashore, however,we were able to anticipate its path, planour operations and gauge its potentialimpact, thanks to an internally developedweb mapping tool called Waste Analysisand Visualization Explorer (WAVE). WhenSandy hit, WAVE displayed the company’soperations located within the projectedpath of the storm and continuallyupdated the storm’s track with real-timeinformation from the National HurricaneCenter. This information allowed us toprepare operational support before itwas needed — instead of reacting oncethe storm passed.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 67SUSTAINABILITY PERFORMANCEOur Greenhouse Gas Footprint — An OverviewWe were the first major company in our industry to assesscomprehensively the greenhouse gas footprint of all ourfacilities in North America over which we exercise ownershipor operatiovnal control. Over the past five years, we haveupdated our carbon footprint and tracked our progress inreducing it.Our direct emissions have varied over time due to a varietyof factors. For instance, since moisture in the waste matrixcontributes to increased production of landfill gas, the severedrought that affected much of the United States in 2011profoundly reduced landfill gas generation that year. 2013saw a small bump in process emissions, but it was attributableto our use of revised global warming potentials fromthe Intergovernmental Panel on Climate Change's FourthAssessment Report. Absent that change, our process emissionswould have shown a 16 percent reduction due toimprovements in our gas collection and landfill cover, as wellas a change in the EPA's estimates for methane oxidation. Seepp. 27–29 in the Appendix for a closer look at our GHG footprintand a description of the methodology we use.WASTE INDUSTRY GREENHOUSE GAS FOOTPRINTOverall, the waste sector is a very small contributor to U.S. greenhousegas emissions, with emissions from landfills, wastewater treatmentand composting accounting for just 1.9 percent of total U.S.GHG emissions in 2012. From 1990 to 2012, net methane emissionsfrom landfills decreased by approximately 30 percent as a result ofdecreases in the amount of decomposable materials (i.e., paper andpaperboard, food scraps and yard trimmings) discarded in landfillsand increases in the amount of landfill gas collected and combusted.Source: EPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks, 1990-2012, EPA430-R-14-003 (Washington, DC: EPA, April 2014).WASTE MANAGEMENT GREENHOUSE GAS FOOTPRINT2011 2012 2013 5GHG Emissions(metric tons CO2 equivalent)Process 16,448,441 17,363,769 6 17,662,765Transportation 7 1,773,307 1,729,547 2,114,250Energy use 8 488,738 540,601 355,015Potential Avoided Emissions 9(metric tons CO2 equivalent)Renewable energy generation 4,700,000 10 4,739,563 5,635,643 11Reuse and recycling of materials 12 30,996,786 36,414,438 38,588,377Carbon permanently sequestered 15,593,412 15,490,568 16,126,208in landfills 13

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 68SUSTAINABILITY PERFORMANCEA GUIDED TOUR OF GHG EMISSIONS IN OUR VALUE CHAINWaste Management’s operations have a range of impacts on greenhouse gas emissions, including through ourdirect emissions of carbon dioxide (CO2), methane (CH4) and other GHGs, our use of electricity (leading toindirect emissions), and our activities (e.g., recycling, energy generation) that have the effect of avoidingemissions elsewhere. While not all of these are part of our “official” carbon footprint – biogenic CO2 emissionsfrom waste, for instance, are viewed by the EPA’s Science Advisory Board as carbon neutral 39 – we think it isimportant to understand how our operations affect GHG emissions throughout our value chain.DISCARDED MATERIALSMany of the materials our customers buy,use and eventually discard contain carbon.When discarded materials are burned ordecompose, they release CO 2 and/ormethane, two important greenhouse gases.COLLECTIONOur collection trucks emit CO 2 from thecombustion of diesel and other fossil fuels.TRANSFER FACILITIESTransfer facilities process wastes and direct them towaste-to-energy plants or landfills. Transfer facilities havedirect CO 2 emissions from the use of fuel on-site and indirectGHG emissions due to their use of electricity. At somefacilities, materials coming into the transfer station can be“mined” for valuable recyclables such as cardboard.KEYManmade CO2emissionsBiogenic CO2emissionsMethane emissionsIndirect emissionsAvoided emissions, orreplaces fossil fuelsRefrigerant emissionsRECYCLING FACILITIESOur recycling facilities process wastes to recover resources thatcan be used to make new goods. These facilities have direct CO 2emissions from the use of fuel on-site and indirect GHG emissionsdue to their use of electricity. Recycling paper, plastics, aluminum,glass and other materials can avoid GHG emissions by: decreasingthe amount of energy needed to convert raw materials into usablecommodities; conserving landfill capacity; preventing the miningand initial processing of petroleum products, metal ores and sand;and preventing the harvesting of trees, thereby allowing foreststo continue to sequester (i.e., store) carbon dioxide from theatmosphere. (See pp. 24–42 for more on our efforts togrow recycling in North America.)GRAPHIC CONTINUES ON THE NEXT PAGE

GRAPHIC CONTINUES ON THE NEXT PAGEWASTE MANAGEMENT SUSTAINABILITY REPORT 2014 69SUSTAINABILITY PERFORMANCEWASTE-TO-ENERGYPLANTSWaste Management’s 17 waste-to-energy plants emit about 65 percentbiogenic CO 2 and 35 percent manmade CO 2 as carbon-containing waste isburned to produce renewable electricity. These plants also avoid CO 2emissions that would result from burning fossil fuels to generate the sameamount of electricity. Metals are recovered at waste-to-energy plants forrecycling, thereby avoiding additional GHG emissions needed to producemetal from ore. (See pp. 47–52 for more on our efforts to divert wasteinto energy products.)LANDFILLSWaste typically includes a mix of biogenic carbon-containing materials(e.g., paper, wood, food waste) and manmade carbon-containingmaterials (e.g., plastics, tires, synthetic textiles) — as well as inertmaterials (e.g., metal, glass, stone). Some of the carbon-containingwaste in landfills decomposes, creating GHGs — mostly methaneand CO 2 . Some of the carbon-containing waste in landfills does notdecompose but instead remains intact, sequestering the carbonindefinitely. 40 Modern landfills prevent most of the methane fromescaping through use of gas collection and landfill cover managementsystems. We are working with the EPA and the CaliforniaEnergy Commission to better understand and quantify methaneemissions from landfills. (See pp. 59–60, as well as pp. 8–17 andpp. 29–30 in the Appendix, for more on how we manage landfills.)LANDFILL-GAS-TO-ENERGYPLANTSOur 137 landfill-gas-to-energy projectsuse landfill gas as fuel, releasing biogenicCO 2 but preventing the release of methaneand avoiding CO 2 emissions that resultfrom burning fossil fuels. (See pp. 53–56for more on our efforts to convert landfillgas to energy.)FLARINGCollected landfill gas may be flared (burned),which converts methane into biogenic CO 2 .BIOMASS PLANTSWaste Management operates two power plants fueled bywaste biomass (i.e., not biomass harvested for the purposeof energy generation). These plants emit biogenic CO 2 andalso avoid the CO 2 emissions that would result if fossil fuelswere used to generate the same amount of electricity.OFFICES/ADMIN BUILDINGSGHG emissions associated with our offices and similarfacilities include CO 2 from on-site energy use, indirectemissions from electricity use and emissions ofgreenhouse gases associated with refrigeration. 41

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 70SUSTAINABILITY PERFORMANCECONSERVING ENERGY ANDUSING RENEWABLE ENERGYAT OUR FACILITIESRACKING FOR THE SOLAR PANEL SYSTEM BEINGINSTALLED AT THE PARKLANDS SITEWaste Management is both a majorsupplier and a user of renewable energy,increasingly utilizing sources such aswind, solar, waste heat and landfill gasto power our facilities. Since our energyuse costs are generally equal to about3 percent of our total revenues, wealso encourage energy efficiency andconservation initiatives throughoutour company.To expand our renewable energy productionand develop new uses forclosed landfill sites, we are workingwith the New Jersey Department ofEnvironmental Protection and PSE&G toaccommodate large-scale solar energyproduction (23 megawatts of solarpower) at the closed Parklands and L&DLandfills, the latter of which is an EPASuperfund site. The projects, which areexpected to be completed in 2014 and2015 respectively, support the EPA’s“RE-Powering America’s Land” initiative,which encourages renewable energydevelopment on current and formerlycontaminated lands, landfills and minesites when it is aligned with the community’svision for the site. We are pursuingsimilar solar power projects at otherclosed sites, including the Hunt RoadLandfill in Massachusetts.Other ways we work to conserve energyand utilize renewables at our facilitiesinclude the following:• Wind- and solar-driven landfill gascontrol devices• Wind- and solar-driven leachateextraction pumps• Landfill gas produced on-site for useby nearby facilities• Waste heat to power other deviceson-site (being piloted at a number ofsites)• Variable frequency drives to reduceelectricity use• Energy efficiency audits to identifypotential energy savings at ourfacilities

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 71SUSTAINABILITY PERFORMANCECONSERVING WATER AT OURFACILITIESIn a world in which freshwater suppliesare under increasing stress, it is of fundamentalimportance that we use watersparingly in our operations.Using the World Business Council forSustainable Development’s Global WaterTool, we have found that 27 percent ofour market areas are located in waterstressedregions — a finding that hasdriven us to implement a wide rangeof water conservation efforts, includingthe following:• Installing high-efficiency plumbingfixtures during building retrofits andfixture change-outs and reducing theamount of water needed for landscapeirrigation at our facilities. For instance,at our LEED Gold Vehicle MaintenanceFacility in Moreno, California, weachieved a 54 percent reduction inwater used for the building and a59 percent reduction in water usedfor landscape irrigation.• Using rainwater and non-potablewater to wash trucks and control dustWATER CONSERVATION AT THE PHOENIX OPENEach year, more than 500,000 people flock to the Waste Management Phoenix Open PGATour golf tournament in water-stressed Arizona. To mitigate the impact of the tournament,we have used it as a forum to highlight possibilities for reducing and reusing water.At the 2013 tournament, volunteers and employees were educated on water and energyconservation measures, hand-washing stations used hand sanitizer instead of water, andwe sponsored a “graywater” initiative — rerouting drain water from kitchens, laundries andhospitality areas for portable restrooms throughout the course. These measures saved 4,800gallons of fresh water. (See pp. 41–42 for more on the Phoenix Open.)and installing biotreatment systemsat some facilities to capture and reuse100 percent of the water used towash our trucks. For example, in 2003,we installed an automated system atour Austin Community Landfill in Texasthat uses recycled water under highpressure to remove mud from trucktires before the vehicles enter nearbypublic roads. Water from the tire washsystem is directed into a large concretecollection basin, and impurities areremoved before the water is reused.• Conserving and reusing reclaimedwastewater in boilers for steam turbinesat select renewable energy projects.• Using wastewater instead of potablewater when constructing landfill units,where environmentally appropriateand allowed under state regulation.In addition to conserving water, WasteManagement works to maintain orimprove the quality of local watersupplies and to replenish subsurfacewater supplies. In some instances, weuse methods such as reverse osmosisto treat and return water from industrialuse to the environment at drinkingwater quality. At some facilities wedesign "zero discharge" storm watermanagement infrastructure (e.g., infiltrationgalleries, percolation basins) toreplenish groundwater resources.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 72SUSTAINABILITY PERFORMANCEMAKING OUR BUILDINGS MORE SUSTAINABLEOur efforts to conserve water andenergy and to use renewable energycome together in our buildings,where we are implementing a rangeof sustainability practices to reduceenvironmental impacts, improveoperational efficiencies and achievecost savings. Several of our facilities,including our company headquartersin Houston, Texas, are certified underthe U.S. Green Building Council’sLEED standards, a globally recognizedgreen building certification program.For more information on our LEEDcertifiedfacilities, see pp. 31–32 in theAppendix.WASTE MANAGEMENT LEED SITES 2013*WASTE MANAGEMENT LEED SITES 2013Spokane, WALEED-NC GoldBluff City, ILLEED-NC GoldHillsboro, ORLEED-NC GoldWM Alameda County, CALEED-EBOM GoldPhiladelphia, PALEED-NC GoldWM Vernon, CALEED-NC SilverMoreno Valley, CALEED-NC GoldTampa, FLLEED-NC SilverWM Community EcoCenterSurprise, AZLEED-NC SilverWhite Tanks, AZLEED-NC GoldRincon, AZLEED-NC GoldWM Innovation CenterRogers, ARLEED-CI GoldWM Corporate HQHouston, TXLEED-NC Gold & LEED-EBOM GoldNewly certifiedProject includedin previous report* LEED-NC is for new construction, LEED-EBOM is for existing buildings’ operation and maintenance, and LEED-CI is for commercial interiors.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 73SUSTAINABILITY PERFORMANCEWASTE MANAGEMENT LOCATIONS WITH WHC-CERTIFIED PROGRAMSPROTECTING AND ENHANCINGWILDLIFE HABITATSWaste Management owns a wide rangeof properties — large and small, urbanand rural. At our larger properties, inthe substantial areas that we set asideas buffer zones, we make a concertedeffort to enhance the natural value of theland, provide habitat for wildlife and offereducational opportunities and aestheticamenities to the surrounding community.One of our key partners in protectingand enhancing wildlife habitats isthe Wildlife Habitat Council (WHC), anonprofit organization that promotesand certifies habitat conservation andmanagement on working lands. Back in2007, we set a goal of having at least100 facilities and approximately 25,000acres of land certified by the WHC asconservation and wildlife habitat by2020. We exceeded that goal in 2010Waste Management Locations with WHC-certified Programs— and our commitment to habitat conservationremains strong. We continueto engage with the WHC on creativeways to go beyond certified habitatsto include smaller sites and additionalopportunities to engage business inhabitat conservation.By the end of 2013, we had 132 WHCcertifiedprograms at 112 facilities(mostly landfills, but also some othertypes of sites), with more than 27,000acres created, enhanced or protectedfor wildlife across North America. Theseinclude 112 Wildlife at Work certifications(shown on the map) recognizingcommendable wildlife habitat managementand environmental educationprograms at individual sites, as wellas 20 Corporate Lands for Learningcertifications recognizing communityorientededucational efforts.Through the WHC’s participation inthe Conservation Registry, all of ourprograms are included in an online,interactive database that tracks andmaps conservation, restoration andwildlife habitat enhancement projectsacross the world, allowing us to betterunderstand and convey the impact ofour conservation programs.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 74SUSTAINABILITY PERFORMANCEWaste Management’s conservation andhabitat work is designed to help protectpollinators, such as bees, birds and butterflies,as well as other plant and animalspecies. In the United States, pollinatorsare in a particularly tenuous situationdue to loss of habitat and otherfactors affecting their well-being. Yetwithout their services, crop yields andfood supplies could be diminished, andpeople could face rising prices for food,affecting the global economy. We havemore than 50 programs dedicated toprotecting pollinators. For example, ourWilliamson County Landfill in Texas iscreating pollinator gardens, and our KirbyCanyon Landfill in California is undertakingextensive efforts to support the baycheckerspot butterfly (see call-out). Inaddition, our Kahle Landfill in Owensville,Missouri, is focusing on removing invasivecool season grasses so native warmseason grasses can repopulate the area,improving habitat for upland grasslandbirds such as the northern cardinal andthe pileated woodpecker.WASTE MANAGEMENT LANDFILL WINS CORPORATE HABITAT OF THE YEAR AWARDWaste Management’s Kirby Canyon Recycling and Disposal Facility, located in Morgan Hill,California, won the Wildlife Habitat Council’s prestigious Corporate Habitat of the YearAward in 2013, selected from more than 600 sites in 46 states and 12 countries. Of theproperty’s approximately 827 acres, about 600 are devoted solely to habitat enhancementprojects and scientific study. The ecosystem is one of the San Francisco Bay region’s fewremaining serpentine-soil grasslands that support the bay checkerspot butterfly, a federallylisted threatened species. In early 2013, to help re-establish the butterfly in areas where ithas gone extinct, Kirby Canyon, in cooperation with the Creekside Center for Earth Observation,provided 10,000 larvae for translocation to two other sites in the area — Tulare Hillin Santa Clara County and Edgewood Natural Preserve in San Mateo County.We also believe that it is essential toshow the value of biodiversity to ourchildren and to instill in them the importanceof being good environmentalstewards. We have therefore incorporatedSTEM (science, technology,engineering and math) education intomost of our wildlife habitat programs.For example, the Bat ConservationProject at the El Sobrante Landfill inNorthern California asks students touse problem solving, collaboration anda hands-on approach to solve environmentalissues utilizing engineeringand math skills. This project also helpsteachers fulfill Common Core educationstandards by promoting group learningand discussion.Beyond the wildlife habitats certifiedat our active and closed facilities, welease our unused property for productiveuse by farmers and ranchers. As of2013, more than 20,000 acres in theUnited States and Canada were usedfor this purpose.


WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 76CREATING A GOOD PLACE TO WORKWe can’t have a strong business without the daily contributions of our approximately43,000 employees. We know that the success of each employee is what enablesWaste Management to succeed, and we strive to give our people the tools they needto develop and excel in their careers.Creating trust and respect for oneanother is a cornerstone of our vision foran inclusive and welcoming workplace.Our values, which are embodied in ouremployee Code of Conduct and relatedtraining, provide the foundation for ourcompany practices, guiding our businessdecisions, our people and our companyculture. For the last seven years, we havebeen named to the Ethisphere Institute’slist of the “World’s Most EthicalCompanies.” For 2013 and 2014, wewere one of only two companies listedin the environmental services category.OUR VALUESHONESTYPROFESSIONALISMEMPLOYEEEMPOWERMENTRESPECTSAFETYACCOUNTABILITYDIVERSITYINCLUSIONRead more about our values here.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 77CREATING A GOOD PLACE TO WORKDIVERSITY AND INCLUSIONWe must have a vibrant and diverse workforcethat reflects the diversity of the customers andcommunities we serve. As an equal opportunityemployer, we are committed to an employmentenvironment free from discrimination. Employmentdecisions are made by placing the most qualifiedperson in each job without regard to race, color,sex, pregnancy, sexual orientation, gender identity,religion, marital status, age, national origin,disability, veteran status, citizen status or otherprotected group status as defined by federal, stateor local laws.As of December 2013, 37 percent of our employeeswere minorities and 17 percent were women.Twenty-three percent of our executive leadershipteam was minority or female. Among companyofficials and managers, about 18 percent wereminority and 18 percent were women. OurBoard of Directors was 13 percent minority and13 percent female.WASTE MANAGEMENT WORKFORCE 2013By ethnic group, in the U.S.WasteManagementWorkforceAll PrivateIndustryWorkforce 42American Indian or 0.7% 0.6%Alaskan NativeAsian 1.6% 5.7%African-American 15.5% 13.9%Caucasian 60.5% 64.8%Hispanic 20.8% 13.4%Multi-Race 0.5% 1.2%Native Hawaiian orPacific Islander0.4% 0.4%By age, in the U.S. and CanadaAge Group% ofWorkforceVeterans (born 1922 –1943) 0.8%Baby Boomers (born 1944 –1960) 36.1%GenXers (born 1961–1980) 45.0%Millennials (born 1981–2000) 18.1%WASTE MANAGEMENTAND VETERANSAt Waste Management, we placespecial emphasis on hiring veterans.In 2013, 7 percent of all ourU.S. hires were military veterans.We are frequently lauded for ouroutreach, including the followingrecent recognitions:• Department of Defense 2013Freedom Award Finalist (EmployerSupport of Guard and Reserve)• G.I. Jobs 2010–2014 “Top MilitaryFriendly” employer• Military Times 2010–2014 “Bestfor Vets” employerWASTE MANAGEMENT EMPLOYEESapproximately 43,000 totalHourly 81%Salaried 19%˜40,000IN THE U.S.˜3,000IN CANADA

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 78CREATING A GOOD PLACE TO WORKENGAGEMENT AND RETENTIONWe encourage communication amongcompany leaders and employees atall levels. Our senior leaders operatewith an open door — and open email— policy. Each quarter, our seniorleadership team hosts a Town Hall-stylemeeting at our Houston headquarters.Employees unable to attend are invitedto submit questions by email, and directresponses are sent in reply. Responsesare often included in our company’sweekly internal newspaper.We value employee engagement. In2013, the Waste Management DriversCouncil, consisting of 17 drivers (onefrom each market area in the organization)was formed to capture the wisdomof our frontline employees. The groupprovided feedback on removing barriersthat prevent drivers from deliveringexceptional customer service. TheCouncil is tapping the knowledge andexperiences of employees to improvetraining, solve problems and deliverfirst-rate customer service. At the endof 2013, we built on this success with anew Route Managers Council.All employees participate in forms ofcoaching, feedback, annual performancereview and development. We believeenvironmental excellence and complianceare the hallmarks of sustainabilityand reflect Waste Management’s corevalues; compliance with applicable regulatorystandards and internal policiesand procedures is part of the performancereview structure for employees.As part of our commitment to developingtalent, we formed a mentorshipprogram in 2013 designed to buildbench strength at mid and seniormanagement levels. Protégés in thisprogram are paired with senior leadershipand, through regular meetingsand conversations, are coached andencouraged to expand their knowledgeof our business and leadership principles.This program is a component ofour succession planning and leadershipdevelopment process.Engagement with employees helpsreduce employee turnover. Trainingis one of the ways we work to retainemployees. Our employee turnoverrate has been steadily increasing overthe last few years (see charts), largelybecause of improvements in the U.S.economy. We work continuously toreduce turnover despite the fact that thelargest sector in our workforce — truckdrivers, route managers and maintenanceworkers — is composed of highlyskilled and certified professionals muchin demand as the economy rebounds.Reorganization is a fact of life in arapidly changing, dynamic businesssector. Waste Management providestransition assistance (severance benefitsand outplacement services) toeligible employees whose employmentis terminated in connection with areorganization event.TOTAL EMPLOYEE TURNOVER RATES(percentage)2011201220132011201220139.5010.5213.0617.0319.2721.87VOLUNTARY EMPLOYEE TURNOVER RATES(percentage)Total Voluntary Employee turnover rates

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 79CREATING A GOOD PLACE TO WORKWaste Management University:Learning and DevelopmentWaste Management University (WMU)provides learning and developmentsolutions to meet the needs of ourbusiness and our people. We offer trainingprograms delivered face-to-faceas well as virtually through mobile andonline communications. The goal is toprovide continual learning opportunitiesin specific business competencies,such as professional development,sales, leadership, technical training andcompliance training. Our approach is“learner-centric” and provides a mixof options accessible to employees. Allemployees participate in annual trainingthat includes job-specific programs aswell as access to a variety of offeringsfor professional development.WMU is using technology to deliver“just-in-time” learning, streamline thelearner’s experience, create onlinecommunities to build collaboration,and provide individualized developmentplans. The company partners withcolleges and credit-granting organizationsto provide employees (and, insome cases, their families) with tuitiondiscounts, scholarships, grants, waivedfees and customized programs. Ourfocus is to create a continuous learningculture that drives performance andimproves talent.Each major Waste Management departmentconducts job-specific training anddevelopment. In 2014, we initiated aseries of “Operator Science” videos toreinforce safety rules and best practiceswith our frontline landfill and transferstation managers. At our recyclingfacilities, we use classroom and handsontraining to reinforce best practiceson safety, workforce conditions, maintenance,emergency preparedness andprocess efficiency.One of the most critical positions inthe company is fleet technician, and wework hard to attract and develop thebest talent in the industry. We launcheda Technician Advantage Program tobegin developing diesel school studentsbefore graduation to transition intofull-time employees. Employees obtainingAutomotive Service Excellencecertification are eligible for pay incentivesin competitive markets.Our Fort Myers, Florida, Training Centerwas developed to standardize trainingwith a goal of reducing driver andfleet technician new-hire turnover by50 percent and reducing the numberof vehicle accidents by 61 percent. Thecenter includes classroom work, interactiveself-paced computer lab learning,hands-on learning stations, actual andsimulated driving and immediate coachingand feedback from skilled driver trainers.From January 2012 to March 2014, morethan 2,000 drivers trained at the centerin intense, two-week sessions.˜ 43Kemployees participate inannual training fromWaste Management University


WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 81WORKFORCE SAFETYThe federal government ranks trash and recycling collection among the top 10 mostdangerous jobs in the United States, with drivers and collectors facing risks from motorvehicle crashes and unique workplace hazards. Facility workers must be constantlyvigilant when working with sophisticated equipment that can cause serious harm ifoperated improperly. Despite a 40 percent reduction in industry fatality and injury ratesbetween 2001 and 2009, the industry rates increased between 2010 and 2012.OUR PROGRAMSAt Waste Management, the safety ofour people has always been our highestpriority. More than a decade ago, wecreated a robust safety philosophy calledMission to Zero (M2Z). The core ofthe M2Z philosophy is zero tolerance forunsafe behaviors by all employees, with agoal of eradicating all accidents and injuriesby coaching and building knowledge.We focus on helping our employeesperform their jobs safely so they returnhome to their families at the end ofevery day. Our safety program includesthorough training, standardized rulebooksand a suite of industry-leadingprograms such as the recent installationof video event recorders in more than95 percent of our collection vehiclesacross the United States (see more onDriveCam on pp. 83–84).Thanks to rigorous classroom instruction,route observations, driver training,data monitoring, safety competitions,and tailored programs based on specificjob categories, we have witnessedmarked improvements in our accidentand injury rates. These include thefollowing:• A decrease of 86 percent in our TotalRecordable Injury Rate (TRIR) —e.g., non-fatal illnesses and injuries— between 2000 (when M2Z waslaunched) and 2013. For 2013, ourTRIR of 3.1 put us significantly belowthe 2012 43 industry average of 5.4.• A 92 percent improvement in ourVehicle Accident Recordable Rate(VARR) from 2005 (when we establishedthis indicator and initiated newand enhanced driver training programs)to 2013.As part of our commitment to thesafety of our employees and the communitieswe serve, each year WasteManagement invests approximately$500 million in the maintenance ofcollection vehicles and $100 millionin maintenance and repairs for heavyequipment. We inspect each vehicletwice daily to ensure proper operationand tie preventative maintenanceinspections to vehicle usage rates.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 82WORKFORCE SAFETYWaste Management is consistentlyrecognized among the best in our industryfor our comprehensive approach tosafety. Each sector of our company hassafety programs that are customized tothe jobs performed. Safety performanceand policies are shared with employeeson a regular basis. We encourageactive engagement between employeesand leadership, with a recently formedDrivers Council and a Route ManagersCouncil providing input on safety policiesand best practices.We also work actively with our tradeassociation, the National Waste &Recycling Association (NW&RA), inits efforts to improve industry safetythrough training and compliance withregulations, industry standards andcompany rules and policies, as wellas through improvements in roadwayregulations. For example, WasteManagement and the NW&RA haveworked in Alabama, Florida, WestVirginia, Wisconsin and other statesto include sanitation vehicles in “MoveOver” laws, which require drivers tochange lanes or slow down whenOPTIMIZING OUR PERFORMANCELaunched in 2012, Service Delivery Optimization (SDO) significantly changed how we manageour collection and maintenance operations. By improving our systems through technology —including onboard computers, routing software and cameras — we can have a big impact onsafety, doing a better job of setting expectations and enhancing employee communications.While SDO is essential to boosting worker safety, it’s also improving environmental services(see p. 63).A critical element of SDO is DriveCam (see pp. 83–84), the new safety technology that wehave installed in our fleet of collection vehicles. By engaging drivers in their own performanceand providing positive reinforcement, as well as constructive coaching, we’re better able toimprove our safety results through our workforce’s spirit of continuous improvement.certain types of emergency and publicservice vehicles are parked on the sideof the road.Injury Rate Over TimeAs a testament to our extensive safetyprograms, we are proud to report thatwe have seen a substantial decrease inour injury rates, which are consistentlybetter than the overall industry average.In compliance with the OccupationalSafety and Health Act of 1970, we recordwork-related injuries and illnesses andreport them to the Occupational Safetyand Health Administration (OSHA). Thefederal agency uses this information tocalculate organization- and industryspecificinjury and illness incident rates(per 100 employees), including the TotalRecordable Incident Rate (TRIR) and theDays Away, Restricted or Transferred(DART) case rate.Our TRIR has improved 65 percentbetween 2003 and 2013. Our 2013TRIR of 3.1 is 43 percent better than the2012 industry average of 5.4 (which isthe most recent government statisticavailable). We are also pleased to reporta decrease of 64 percent in our DARTrate between 2003 and 2013. Our 2013DART of 2.4 is 29 percent better thanthe 2012 industry average of 3.4.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 83WORKFORCE SAFETYAnother indicator of a company’ssafety performance and efficacy is theExperience Modification Rate (EMR),which is determined by the NationalCouncil on Compensation Insurance.Waste Management is consistentlybelow the industry average of 1.0, asseen in the chart below.Vehicle Safety and Driver TrainingWith roughly 17,000 Waste Managementtrucks on the road each day, vehiclesafety is one of our highest priorities. Ourinvestments in fleet safety, driver trainingand onboard equipment have helped usdecrease reported vehicle accidents by62 percent from 2007 through 2013.A key element of our vehicle safetyprogram is a new program that usesDriveCam, which provides a platformfor coaching and building knowledge,thereby improving safe driving andreducing collisions. Roughly the size ofone’s palm, DriveCam is a video eventrecorder mounted on the windshield ofour collection vehicles. The recorder istriggered by certain vehicle behaviors,such as aggressive braking, hard cornering,swerving or a collision. Once an eventis captured, the device sends the eventto DriveCam personnel, who analyze theoccurrence and then send informationback to Waste Management field managersfor performance coaching.TRIR28% improvement since 2007DriveCam provides our field managerswith leading indicators of improperdriving habits or potential issueswith specific driver behavior. Theseinsights allow us to proactively coachour drivers and reduce the frequencyand severity of collisions. Historically,personal observations and incidentrecords were the primary tools availableto our managers to identifyopportunities for improvement withour drivers. DriveCam provides aunique ability to observe leading indicatorsof collisions and preemptively2007 2011 2012 2013 44Waste Management 4.3 3.1 2.9 3.1Industry-wide average 6.4 4.9 5.4 N/AEXPERIENCE MODIFICATION RATE (EMR)More than 25 points better than the industry standardDART8% improvement since 2007INDUSTRY STANDARD201120120.720.740.711.002007 2011 2012 2013 44Waste Management 2.6 2.4 2.2 2.4Industry-wide average 4.1 3.0 3.4 N/A2013Source: Bureau of Labor Statistics, Incidence Rates of Non-Fatal Occupational Injuries and Illnesses(data for the waste management and remediation services industry)

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 84WORKFORCE SAFETYVEHICLE ACCIDENT RECORDABLE RATEDriver hours without a vehicle accident2007 2011 45 2012 20138,974 13,307 14,200 14,499coach drivers to reduce the probabilityof future collisions. DriveCam alsoallows us to appreciate the ways ourprofessional drivers avoid collisionswith defensive driving techniques. Weuse these events to document anddisseminate best practices among ourdrivers, featuring the best examples ofdefensive driving in our “DriveCam Playof the Month.”DriveCam began on a pilot basis in2012 and is now installed in 95 percentof all of our collection vehicles in theUnited States. In addition to reducingthe number of collisions, DriveCam iscontributing to reductions in claims,fuel and maintenance costs. In fact,DriveCam has been so successful thatwe’re now offering it to our employeesto use at home. Through the DriveCamfor Families Program, employees inthe United States and Canada areautomatically eligible to receive theprogram at a 30 percent discount.Although it works the same as WasteManagement’s program, the homeversion video can only be accessed bythe family.For more on DriveCam, watch thisvideo.TrainingIn addition to DriveCam, we provideon-the-job training and evaluationprograms for our drivers that meetand/or exceed U.S. Department ofTransportation (DOT) requirements.Newly hired drivers undergo morethan 80 hours of training, in both theclassroom and on the road with anexperienced driver. We conduct driverbriefings each morning before driversbegin their routes. As part of the trainingprocess, evaluations are given at 30,60 and 75 days. We monitor to assurecompliance with federal regulations forthe maximum number of hours spentbehind the wheel and require all driversto pass a general physical and meetDRIVECAM DRIVER OF THE YEAROut of 500 companies that use DriveCamtechnology, Waste Management employeeDennis Burrell was recognized by DriveCamas Driver of the Year for 2013 in the wasteservices category. Burrell, who was alsoa finalist for Waste Management’s Driverof the Year Award, has more than threedecades of experience operating a frontendloader.“We’re safer now because of DriveCam,”Burrell said. “It keeps you on your toes,makes you slow down and be cautious.I’ve never taken any chances just to finishup a few minutes sooner. DriveCam reinforcesthat.”

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 85WORKFORCE SAFETYDOT physical requirements. Trainingis one of the ways we work to reduceturnover and retain employees. As theU.S. economy has improved, there isgreater competition for commercialdrivers and more opportunities foremployment elsewhere. Better trainingcan lead to increased retention as wellas safer employees.Our Driver Training Center in FortMyers, Florida, provides hands-on aswell as computer lab courses and classroomtraining on critical safety rulesand operating practices, with interactivestations devoted to proceduressuch as safe lifting, Hazardous EnergyControl Program (Lock-Out/Tag-Out),and vehicle inspections, among others.The safer our employees are, the moresuccessful we are as a company for ourcustomers, our shareholders and thecommunities that we serve.Protecting “Lone” WorkersWhether it’s a closed landfill, a renewableenergy plant or a recyclingdrop-off facility, Waste Managementhas a number of locations across NorthAmerica that may be staffed by a singleperson at certain times. While thismakes for an efficient operation, it alsocomes with a risk: What if a lone workerneeds emergency assistance while onthe job?Through Waste Management SecurityServices, a branch of the companycommitted to protecting the safetyof employees and customers, operatorsnow have a tool that can offerprotection while on the job. The LonerVIDEO SAFETY TRAININGSafe Monitoring Device is about thesize of a cell phone and attaches to abelt. Its motion sensors detect whenan employee has been motionless fora period of time, which triggers analert. Unless the alert is deactivated, asignal is sent to Waste Management’sSecurity Operations Center in Houston,Texas, which attempts to contact theemployee or emergency responders.The device also features a silent panicbutton and GPS tracking in case aworker falls or an impact occurs.In 2013, we continued our monthly video series (called the Driving Science Series, or DSS)for our hauling operations. These video messages are designed to improve each driver’sknowledge and awareness of refuse truck dynamics and performance, leading to safer habitsbehind the wheel.We also launched two new video series, called our Operator Science Series (OSS) andMaintenance Science Series (MSS), for our heavy equipment operators and maintenancetechnicians. Modeled after the DSS series, these messages address specific hazards to bemanaged by our landfill and maintenance professionals.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 86WORKFORCE SAFETYSAMPLE OF COURSE CURRICULUM AT DRIVER TRAINING CENTER1 2DRIVER STARTS WITHWASTE MANAGEMENTWEEK TWOOF TRAINING34WEEK ONEOF TRAININGDRIVERSGRADUATEWEEK ONE TOPICS• Check in and receive required personalprotective equipment• Code of Conduct/meal break training• Safety rules book• Safe driving practices• Life critical rules• Performance management for drivers• Department of Transportation training• Driver Vehicle Inspection Report• Hazard Energy Control ProgramWEEK TWO ACTIVITIES• One-on-one training on driving course• Drivers complete hands-on learning stations• Drivers watch videos in computer lab• Drivers complete driving course evaluation• Drivers complete written test• Drivers receive feedback from trainersDRIVERS CONTINUETRAINING BACKAT THEIR SITES —ON-THE-JOB TRAINING56MANAGERS COACH ANDREINFORCE SAFETY BEHAVIORSNUMBER OF DRIVERS COMPLETING TWO-WEEKTRAINING, BY LINE OF BUSINESS2012 2013Residential 597 672Commercial 96 89Roll-off 177 246


WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 88ENGAGING WITH COMMUNITIESWaste Management provides services to more than 21 million customers. But we doit one city, one neighborhood, one business and one home at a time. This makes us anintegral part of every community where we operate.We have a stake in helping to make ourcities, towns and counties better placesin which to work and live — not just fortoday, but for the future. It’s a responsibilitywe take to heart. Our visionis to be a trusted and valued partner,working hand-in-hand with the communitieswhere we operate. Our effortsfocus on making these communitiescleaner, safer and more vibrant.The events and organizations that wesupport are as varied as the thousandsof communities and individuals that weserve. We concentrate on initiativesthat enhance our environment, promoteeducation and improve the livabilityof our communities, priorities thattie directly to our company’s four keysustainability targets for the year 2020:increasing recycling; producing renewableenergy; reducing fleet emissions;and preserving wildlife habitat.We have long been involved in environmentalprojects that preserveand protect healthy ecosystems, andwe optimize our work with nationalorganizations such as Keep AmericaBeautiful (KAB) and the WildlifeHabitat Council (WHC). KAB and WHCnational programs allow us to have animpact at the local level at hundreds ofsites across our operating areas. Ouremployees also work in partnershipwith community-based groups, includingconservationists, universities andenvironmental organizations, to supporthealthy ecosystems.OUR COMMUNITY OUTREACH VISIONTo be a trusted and valuedcommunity partner.OUR MISSIONPreserving the environment and increasingthe environmental services we providethrough the cultivation of goodwill,education, open communication and thedevelopment of strategic relationshipswith the communities where we operate,serve or want to serve.COMMUNITY OUTREACH PILLARSEnvironmentEducationCommunity vitality

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 89ENGAGING WITH COMMUNITIESOUR OUTREACH PILLARSPreserving the EnvironmentThrough our partnerships with national and local environmentalorganizations, we tap our assets — including land andpeople — to help protect the environment for the long term.The programs we support teach the fundamentals of habitatprotection, conservation and biodiversity, helping us createenvironmental “ambassadors” who, in turn, help spread theword about environmental responsibility.Most notably, our long-standing partnership with the WildlifeHabitat Council has resulted in the creation of 132 projectsat 112 Waste Management sites that were certified by theWildlife Habitat Council as of 2013. Together, these propertiesencompass 27,000 acres for the preservation of native plantsand wildlife. These facilities often are paired with communityenvironmental education programs that occur both on- andoff-site. We exceeded our 2020 goal for habitat conservationin 2010 and continue to expand certified sites to include smallurban habitats at transfer stations, recycling facilities and othersmaller Waste Management facilities. (See pp. 73–74 for moreon our efforts to protect and enhance wildlife habitats.)FROM WASTELAND TO PARKLANDWhat once was a post-industrial wasteland in New Jersey is now a74-acre riverfront park, thanks in part to an innovative partnershipbetween Waste Management, environmental agencies and localgovernment officials.The former PJP Landfill in Jersey City had been used as a disposalsite by local business and hauling companies for nearly a centurybefore its closure in 1973. The property was declared a federalSuperfund site in 1983. Waste Management became involved afteracquiring a local hauler, which was one of the many previous usersof the landfill.Among the responsible parties at PJP, Waste Management steppedforward to work closely with regulators, local government and thecommunity to find a way to transform an environmental probleminto a significant local asset. Our role went well beyond the design,construction and routine maintenance of the government-approvedremedy. We worked with the community to develop a long-termvision for the property, aligning with the urban renewal and qualityof-lifegoals of the people of Jersey City.The remediation work included a cap cover system sloped to accommodatefuture development as a municipal park while protectinggroundwater, restoration of wetlands along the shoreline, plantingof grass and wildflowers, and creation of access roads.The successful completion of the park, which opened in 2012, alignswith one of our key transformational goals: to know our customersand serve them better than anyone else. Through the proactivemanagement of this project, we helped to transform the local landscape,increase city tax rolls and create a valuable public asset thatwill continue to provide benefits for many generations to come.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 90ENGAGING WITH COMMUNITIESEducating the PublicAs a provider of environmental solutions, we want to helpeducate consumers and young people about how their personalactions impact their communities. That’s one reason whywe run programs that cover topics such as the proper way torecycle and which materials, if handled incorrectly, can harmthe environment.In 2013, we held environmental education sessions with morethan 200,000 students in grade schools and universities acrossthe United States. One forum featured third-generation oceanexplorer Fabien Cousteau, who spoke with approximately150 middle school students at the 19 th annual WheelabatorSymposium for Environment and Education. With help fromteachers and employees of Wheelabrator Technologies, theyoung teens from 15 middle schools along the East Coast hadidentified environmental issues in their communities and thendedicated months of preparation and service to finding andimplementing solutions. The symposium at which Cousteauspoke offered students the chance to come together to celebratethis series of green community projects.We also use national environmental days of observance, suchas Earth Day and Keep America Beautiful’s America RecyclesDay, to educate the public on ways they can protect theplanet’s natural resources. On Earth Day, Waste Managementteamed with the Houston Air Alliance to provide environmentaleducation to thousands of Houston residents. Attendeeswere invited to play recycling games, take quizzes on wildlifehabitat preservation and earn prizes such as plants that couldbe replanted at home. Meanwhile, more than 125 employeesfrom southern Florida welcomed nearly 1,000 studentsand their families to the fifth annual Earth Day Open House atMonarch Hill Renewable Energy Park. The day featured landfilltours, photo shoots with former Miami Dolphins players, andhands-on activities — all while raising thousands of dollars for11 local elementary schools.In 2013, we launched a new Recycle Often. Recycle Right. SMcommunity education campaign highlighting the importanceof recycling more materials and making sure only recyclablesare placed in recycling bins (see p. 33). This education campaign,which is being reinforced at events across the country,is continuing into 2014 and beyond.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 91ENGAGING WITH COMMUNITIESPromoting Community VitalityWhether sponsoring local community initiatives or workingwith nonprofits to raise environmental awareness, we look forways to be a good neighbor.Through our partnership with Keep America Beautiful andseveral other environmental organizations, Waste Managementengages in hundreds of community environmental educationand beautification initiatives that highlight our desire to helpcreate and maintain vibrant communities. In 2013, we provided40 grants to various nonprofit environmental organizations andKAB affiliates with programs focused on community beautificationand recycling education. Several grants, for example, paidfor waste receptacles in municipal parks.2013 KEY COMMUNITY STATISTICS$13.98Mtotal corporatecharitable contributions(cash and in-kind donations)27Kacres protectedfor wildlife habitat across132 programs at 112Waste Management facilities200Kyoung people educatedon environmentalstewardship8.5Ktrees planted incollaboration with theArbor Day Foundation

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 92ENGAGING WITH COMMUNITIESSTAKEHOLDER ENGAGEMENTWaste Management values open dialoguewith the diverse stakeholders thathave an interest in our business andhold us accountable to our principles.We engage broadly, and at every level,with industry peers and with multistakeholdergroups to discuss the issuesaffecting our business and the waysin which our operations may affectothers. Insights from these engagementshelp shape our strategic plansand business targets and are especiallyimportant for guiding our work withinour communities.We take a systematic approach to stakeholderengagement, and we identify andregularly engage with key stakeholders,from environmental groups to businessand manufacturing leaders, fromgovernment associations to scientificacademies. (See detailed stakeholderlist in the Appendix starting on p. 36.)These stakeholders can be found acrossmultiple sectors and deep within ourcommunities. All are essential in helpingour company stay abreast of currenttrends, perspectives and policy mattersthat might affect our industry, our customersand our communities.We interact with stakeholders in avariety of ways. When working onfacility upgrades and new construction,we map our community footprint andseek to engage groups and individualsin open dialogue through CommunityAdvisory Councils or more informalroutine interactions, open house events,public meetings, tours or other outreachopportunities. We also host sustainabilityforums with our larger customersthat focus on ways to reduce costs,lessen environmental footprints andincrease the reuse of resources.Participation in policy discussions supplementsour dialogue at the local leveland ensures that we are working withstakeholders from many perspectives.We believe it is important for stakeholdersfrom different viewpoints to meettogether in a sustained effort to findcommon ground and mutual understandingof difficult environmental challenges.The years 2012 and 2013 continued tobe active ones, with company representativesserving on a number of boardsand advisory councils, as noted in theAppendix in the list starting on p. 36. Aparticular focus for Waste Managementcontinues to be active engagement onenvironmental justice (EJ). (See more onenvironmental justice on p. 94.)One of the central principles of theenvironmental justice movement isthat community members speak forthemselves. We agree — and for thatreason we have been the principalsponsor for scholarships for the NationalEnvironmental Justice Conference andTraining Program. This annual event,co-sponsored by major federal agenciesand members of the private sector,brings together officials from variouslevels of government charged withprotecting human health, the environment,and economic prosperity andequality for all, along with the manystakeholders who share that commitment.Waste Management is pleased tobe able to promote these interactionson important policy issues involvingenvironmental justice.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 93ENGAGING WITH COMMUNITIESOther engagement activities of notein this area include the following:• Memberships in Pennsylvania andCalifornia EJ advisory councils• Chair of the Business Network forEnvironmental Justice• Speaker at the U.S. EnvironmentalProtection Agency training programon engaging community groups in thepermitting process• Member of the EPA’s NationalEnvironmental Justice AdvisoryCouncil work group on public engagementin the permitting process• Member of the EPA Science AdvisoryBoard’s work group on technicalguidance to implement environmentaljustice throughout the EPA’s regulatoryprogramsOur focus on community engagementand the important issue of environmentaljustice is consistent with our workto expand the scope of our communitypartnerships through the Wildlife HabitatCouncil and Keep America Beautiful.As we have reflected upon the evolutionof waste management in the UnitedStates and globally, we sponsored twoterms of a coalition of community advocates;environmentalists; federal, stateand local government representatives;businesses; and academics broughttogether to recommend how to drivemore sustainable materials managementpractices. The world’s resourcesare finite, and efforts to transform andreuse rather than dispose of discardedmaterials must be consistent with environmentalexcellence and social justice.It makes sense for a broad-based coalitionto take up this challenge.The central premise of sustainable materialsmanagement is that producers ofgoods and services step back, analyzethe impacts of their actions, andrecognize the need to couple environmentaland social good with economicprogress. The Sustainable MaterialsManagement Coalition first reported in2012 on how governments, businessesand stakeholders should think about themost productive and sustainable waysto use, reuse and transform wastes.The Coalition then asked a representativegroup of its members to reporton the benefits of “life cycle thinking.”The resulting report in 2013 sought toeducate policymakers and the generalpublic on the promise life cycle thinking“Life cycle thinking is a fancy term that speaks to an importantprocess. When end users purchase a good or service, they don’talways see the larger sequence of events that preceded theirpurchase. How were the raw materials sourced and what were theenvironmental implications of that step? How was the productmanufactured, and what environmental footprint did that phaseleave behind? How do the end users consume the product? Andhow will they dispose of it?”— Barry Caldwell,Senior Vice President, Waste Management

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 94ENGAGING WITH COMMUNITIES“Our collaboration with the Sustainable Materials ManagementCoalition has been particularly fruitful as the SMMC worksto make sustainable materials management and life cyclethinking accessible.”— Mathy Stanislaus,Assistant Administrator, U.S. Environmental Protection Agencyholds for a planet with finite resources.Life cycle thinking is centered in respectfor environmental impacts in the communityand offers a means to factorbroadly distributed goods, such as cleanair and water, into economic policy anddecision making.In 2014, the Sustainable MaterialsManagement Coalition will turn itsattention to the issue of increasingrecycling throughout the country.Environmental Justice and CorporateDisclosureIn recent decades, low-income communitiesand communities of color in theUnited States have raised the concernthat, when compared to more affluentcommunities, they have borne a disproportionateenvironmental burden. Thesecommunities and their advocates havecalled for fairness in the siting of landfills,waste-processing facilities and otherindustrial facilities — an element of whatis frequently referred to as “environmentaljustice.” This is a concern that WasteManagement takes very seriously.For more than 20 years, we haveexpressed our commitment to environmentaljustice through direct andsustained collaboration with regulators,community groups, academics, advocatesand others in industry to ensurethat communities that host our facilitiesare treated fairly. But more than that, wewant to assure our stakeholders that ourfacilities are distributed equitably acrossthe country and are not concentratedin communities where race or lowerincome might affect fair access to thelocal decision makers who determinewhere industrial facilities can be sited.We disclosed the demographic footprintof our landfills and waste-to-energyfacilities in our 2010 SustainabilityReport. 46 We believe we were the firstcompany to do so. Using the methodologydesigned by environmentaljustice experts and recommended bythe EPA, we mapped our landfills andwaste-to-energy facilities — the sitesfor which local community groups andnational advocacy organizations mostfrequently raised concern. Following the2010 report, we reached out to environmentaljustice advocates and otherstakeholders for feedback. They told usthey were encouraged by our disclosure,but they urged us to go further andmap the location of all of our operations.In response, we disclosed in our2012 Sustainability Report our comprehensivefootprint, which is repeated inthe Appendix of this report on p. 35.Our facilities are generally as likely tobe located in communities above thestate average income level as below— approximately the “half above, halfbelow the average” of a normal, randomdistribution. Out of 1,423 facilities,58 percent are located in communities

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 95ENGAGING WITH COMMUNITIESwith higher non-Hispanic white representationthan the state average, and48 percent are in communities withhigher incomes than the state average.We will update our footprint againwith each new census or when WasteManagement undergoes an acquisitionor divestiture sufficient to change ourdemographic footprint in a meaningfulway (whichever comes earlier). 47CHARITABLE CONTRIBUTIONSWaste Management supports communitiesacross the United States and Canadaby making charitable contributions to awide range of programs and activities.We aim to provide funds in ways thatbest benefit local needs — whetherit’s writing a check, participating onlocal boards or sharing our expertise.Wherever possible, we engage withstakeholders in our communities toidentify their biggest areas of need.Promoting VolunteerismWaste Management allows employeesto take eight hours per year of “paidtime on” for volunteer efforts. In 2013,volunteers reported contributing 1,664A DRIVER’S MISSIONIt was 2007 — the beginning of the country’s economic recession — and Waste Managementcommercial driver Arnold Harvey was working the overnight shifts in the Marylandcommunity of Gaithersburg, a suburb of the nation’s capital. Over the course of severalweeks, he watched as the number of homeless — including children — steadily increased.The suffering he saw broke his heart and he pledged to do something about it. He starteda collection drive among his coworkers to gather food and clothing. Over time, customersbegan to hear about his efforts and also began to support the cause.Ultimately, Harvey and his wife, Theresa, cashed out their stocks and retirement fundsand used the money to start a food pantry. The organization, God’s Connection Transition,currently feeds approximately 5,000 families a month. Harvey, who was recentlyprofiled in People magazine and on for his efforts, partners with a numberof grocery stores and retailers to gather food and other goods for individuals in need.In 2013, Waste Management contributed more than $11,500 to Harvey’s organizationand in 2014 expanded collaboration with other local businesses to leverage support forthis project.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 96ENGAGING WITH COMMUNITIEShours during paid working hours. Thistotal does not reflect the thousandsof hours we know our employees volunteeron their own time but chosenot to track. As part of our work withKeep America Beautiful and the WildlifeHabitat Council, we encourage ouremployees to volunteer in their localareas on projects we sponsor throughoutthe year.At Waste Management, we pride ourselveson having an employee basededicated to stabilizing and revitalizingour operating communities throughkind acts of volunteerism.Planting Trees and Preserving HabitatsThrough Cause MarketingOur cause marketing initiatives encourageexisting and new customers to sign upfor services. In exchange, we fund variousprograms that promote healthy and balancedecosystems within communities.CHARITABLE GIVINGFor the last several years, we have joinedforces with the Audubon Society and theArbor Day Foundation to raise awarenessamong our customers of social concernswhile promoting practices that makecommunities more vital.Our Audubon Society partnership, whichtakes place around Earth Day, supportsthe conservation of valuable migratorybird habitats in environmentally sensitiveareas. For each new customer thatsigns up in this promotion, we supportadditional areas of habitat along theTexas Gulf Coast. The 2013 Earth Daypromotion created more than 180 newbusiness accounts and supported 46acres of habitat.The collaboration with the Arbor DayFoundation, meanwhile, helps in conservingnatural habitats, particularlyin urban areas where approximately4 million trees are lost annually. We runpromotions to plant trees on behalf ofcustomers who add new services withWaste Management.This collaboration also indirectly supportsand brings awareness to someof our other sustainability goals. Forexample, by meeting our recycling goalof managing more than 20 million tonsof recyclables annually, we can savethe equivalent of more than 120 milliontrees a year.ARBOR DAY FOUNDATION PROMOTION(thousand trees planted)2012 3.4201320148.510(projected)Year Cash Contributions In-Kind Donations Total2011 $11,044,496 $2,938,976 $13,983,4722012 $11,941,437 $3,156,527 $15,097,9642013 $11,554,171 $2,430,711 $13,984,882

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 97ENGAGING WITH COMMUNITIESSupport When Disasters StrikeWhen disasters strike, WasteManagement responds with recoveryefforts — particularly when the disastershappen in our areas of operation.In May 2013, a deadly tornado toucheddown in Moore, Oklahoma. Almostimmediately, Waste Management beganorganizing employees to assist in therecovery effort. We sent in teams fromneighboring states to help manage themassive amount of debris. We focusedespecially on the Crutcho Public School,which is located in the community nearone of our landfills. Crews from WasteManagement assisted with the cleanup,which included salvaging for supplies,desks and other equipment that couldbe saved.Several Waste Management employees,as well as members of their extendedfamilies, either lost homes during thetornado or suffered significant propertydamage. The Waste ManagementEmployees Care Fund, a nonprofit entity,was available to provide short-termfinancing assistance to those facingunexpected hardships.In addition, Waste Managementdonated $50,000 to the AmericanRed Cross Disaster Relief Fund tosupport response efforts to tornadosin Oklahoma and Texas.In late 2013, Waste Managementresponded to the Typhoon Haiyandisaster in the Philippines and a rash oftornadoes in the Midwestern UnitedStates with a $25,000 donation to theAmerican Red Cross and its NaturalDisaster Relief Fund. We also agreed tomatch up to $25,000 of employees’ personalcontributions to the relief effortsin the Midwest or the Philippines.In the spring of 2014, the small town ofOso, Washington, was hit with a massivemudslide and flood. The disaster tookout the entire community, killing morethan 40 people and destroying dozensof homes. Waste Management servicedthe community, and several of ouremployees lived in or near the area. Wecontributed $5,000 to the communityrelief fund and supplied containers insupport of the volunteers and workersin the rescue effort.Disaster relief donations:$50Kin support of response effortsto tornados in Oklahoma and Texas$25Kin response to the Typhoon Haiyandisaster in the Philippines and arash of tornadoes in the MidwesternUnited States$5Kin support of the communityrelief fund for the mudslide and flooddisaster in Oso, Washington

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 98ENGAGING WITH COMMUNITIESSUSTAINING COMMUNITIESWe contribute to our communitiesin many ways beyond just charitabledonations. Our day-to-day operations— from employment of 43,000people, to the taxes we pay, to thesupplies and materials we purchase— help boost economic growth in theareas where we operate. Our strongrelationships with our stakeholders aid inour ability to address community needsby identifying points of common intersection,where the community and ourcompany have vested interests.In many of the municipalities in whichwe do business, we also provide othereconomic contributions as part of ourcommitment to the municipality. Ourmajor projects often pay “host fees”to municipalities in which they arelocated. We recognize that communitiesin which we locate are providingan environmental service to a broadgeographic area, not just to the residentsof the community that housesour facilities. In consideration of thatbenefit, our host fees help pay forprojects and services that local communitiesoffer their residents such as,for example, new recycling services ornew school equipment.A Watchful EyeFor more than a decade, our WasteWatch community program has trainedour sanitation workers to keep theireyes open for suspicious activities intheir communities.Many of our drivers are out in the weehours of the morning. They are, in manyways, the eyes and ears of the neighborhoodswhere they work. Introducedin 2004 in Forest Grove, Oregon, theprogram has trained thousands of ourWASTE MANAGEMENT’SECONOMIC BENEFITS$14Mcharitablecontributions$580Mtaxes paid(real estate andincome taxes,U.S. and Canada)$3.6Bemployee wagesand benefits$310Mdiverse supplierspending$7.2Bsupplier spending$440Mlocal spending(host fees)$683Mshareholder dividendsTAXES PAID IN 2012-2013 48Real Estate Taxes2012Real Estate Taxes2013Income Taxes2012Income Taxes2013United States $63.4 million $64.5 million $333.5 million $470.1 millionCanada $4.4 million $4.7 million $32.1 million $41.0 million

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 99ENGAGING WITH COMMUNITIESemployees in 279 communities acrossthe country on how to spot unusual, andpotentially dangerous, situations. Theprogram teaches drivers to look andlisten for suspicious activities and emergencysituations and then report theirobservations to public safety and locallaw enforcement agencies.To enter the program and be recognizedas a Waste Watch Certified Driver, adriver must participate in a formal trainingprogram, which includes instructionfrom corporate security and local lawenforcement personnel, and then pass awritten examination.We also partner with other safetyrelatedorganizations and programs,including Amber Alert, the NationalCenter for Missing & Exploited Children,Community Crime Stoppers and the U.S.Department of Homeland Security.Over the years, the Waste Watchprogram has received widespreadnational acclaim, earning recognitionfrom local municipalities and theNational Sheriffs’ Association’s Award ofExcellence in Neighborhood Watch. Ourdrivers have been lauded for reportingsuspicious activity ranging from thefts tovandalism. Drivers have also helped savelives by calling in emergency medicalassistance for individuals observed to bein physical distress.Recent examples include the following:• An Oregon driver, who passed anelderly man standing on the side ofthe road. Recognizing potential confusionon the man’s face, the driverpulled to the side of the road andstayed with him to get a name andaddress. He then contacted localauthorities, as he learned to do inWaste Watch training.• A Florida driver who witnessed a theftin progress — within two months ofcompleting Waste Watch training. Hecontacted law enforcement, leadingto an arrest in the case.• A state of Washington truck driverwho came upon a woman who hadslipped in her driveway. The driveralerted 911, made her secure andcomfortable, and stayed until medicalassistance arrived.• Texas drivers who spotted a suspectidentified by police as having attemptedsexual assault. An immediate callto the police led to the suspect’sapprehension.• A team of New York drivers whosaw a house in flames and used theirtruck’s fire extinguisher to save thefamily’s home.The Waste Watchcommunity program has trainedthousands of employees in279communitiesacross the country

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 100ENDNOTES1See total includes landfill gas to energy, waste to energy,solar, waste-based fuel and steam.3In 2011, we began to participate in the Wildlife HabitatCouncil’s “lands for learning” projects, which supplementits initial place-specific focus. From 2011 on, our numbersreflect both “lands for learning” projects and specific habitatsites.4See pp. 41–42 for more on the Waste Management PhoenixOpen, a Professional Golfers’ Association Tour event we havesponsored. In 2013, the tournament became the first sportingevent of its kind to attain “zero waste” status.5Beginning with our 2013 emissions reporting, we are usingthe modified 100-year global warming potentials (GWPs)promulgated by the U.S. Environmental Protection Agency(EPA) in November 2013. Pertinent to our carbon footprint,the EPA revised the GWP for methane from 21 to 25 and theGWP for nitrous oxide from 310 to 298.6We have corrected our 2012 process number to includepower generation and refrigerants used at sites included inprevious years’ calculations but exempted by the EPA’s GHGreporting rule. We are including these units for consistencyover time, amending last year’s reporting number.7We have changed our methodology for calculating fleetefficiency to conform to the EPA’s most recent (2013)SmartWay Truck Tool. In order to evaluate relative emissionsand progress toward our 2020 transport emissions reductiongoal, we have recalculated our 2007 baseline for collectionvehicles and our 2011–2013 emissions using the 2013 tool.In addition, we have changed our database for making theseSmartWay calculations from our prior reliance on fuel logs tothe use of records compiled for tax credit and fee purposes.The tax documentation reflects fuel purchased in a year, includingsome insignificant amounts of fuel stored rather thanused in a given year. We believe the corporate tax recordsare more complete than the facility-specific fuel logs. Thetransition to these records accounts for part of the increasein emissions from 2012 to 2013. Note that our transportationemissions reported here include those from both ourcollection fleet and our non-collection “yellow iron” (i.e.,off-road equipment such as forklifts and excavators) used onsite. A small amount of fuel in this category is used for nontransportationpurposes (e.g., running emergency generatorsor barbeque grills on site), but we do not subtract these fromour transportation totals.8We are in transition in the way we track electricity data.In 2013, we hired a third party to assist in developing andreporting electricity data, making use of the enterprise accountingsystem’s coding of accounts paid. We believe thatthis accounting system is more accurate than our previousestimation, which used a representative sample of WasteManagement operations to project entity-wide emissions.We believe our previous estimations, in fact, erred on thehigh side. The dramatic reduction in energy use in 2013 isthus likely due in large part to overestimation in prior yearsrather than a true reduction from previous emissions. In2014, we will continue to refine our procedures for calculatingenergy use, with a goal of developing a more comprehensiveenergy conservation program.9We are reporting these data to inform our customers and thepublic about the potential GHG reduction benefits associatedwith carbon storage in landfills, our renewable energyproduction and the value of the recyclable materials we collectand process. We are not presuming to characterize howemerging regulatory programs will allocate credit for theseavoided emissions, so we do not claim these greenhouse gasreduction benefits as our own nor attempt to deduct thesereductions from our carbon footprint.10Renewable energy from our waste wood plants in 2011inadvertently was omitted from our 2012 report. This hasbeen corrected.11Increases in productivity in 2013 include running our wasteto-energyplants at higher capacity and including energygenerated from wind projects in our calculations.12The greenhouse gas savings figures for 2011 and 2012 werebased upon estimates made using the National RecyclingCoalition (NRC) Environmental Benefits Calculator. Consistentwith our efforts to align our reporting more closely withcurrent EPA methods where possible, we have converted ourestimates of the benefits of recycling to those developedusing the EPA’s Waste Reduction Model (WARM), whichreports benefits in MTCO 2 e (the measure consistent withthe other units reported in this chart). Our 2011 and 2012emissions remain those calculated using the NRC model, butthey have been converted to MTCO 2 e for purposes of comparison.(Note that our 2012 report erroneously stated therecycling savings were already expressed as MTCO 2 e.) Alsonote that the EPA has yet to include updated GWP numbersin its WARM software. In our calculations, we assume that, byrecycling, we divert materials from the average landfill nationally,not solely from our modern landfills with landfill-gasto-energycapacity. If instead our recycling were to divertmaterials only from our own modern landfills, the emissionsreductions achieved by recycling would only be 31,613,385in 2013. Note also that the increase in emissions reductionsrealized by recycling does not correspond arithmetically tothe increase in total tons recycled. That is because paperrecycling achieves very high emissions reductions, and therelative proportion of paper in the recycling stream is decliningas consumers shift from paper-based information toelectronics (e.g., from newspapers to e-readers).13For a discussion of the protocols that govern this calculationof carbon storage or sequestration, see pp. 27–29 of theAppendix.14Tons of coal equivalent is calculated based on the equivalentnumber of households that could be powered byWaste Management energy production. Note that standardindustry assumptions about household energy use differ forthe waste-to-energy and landfill-gas-to-energy sectors:Standard waste-to-energy reporting is 1,000 householdsper installed megawatt, while the household conversion forlandfill-gas-to-energy is based upon U.S. Energy InformationAdministration data that is updated yearly. We have notincluded the energy value of our wind projects in this entrybecause there is no sector conversion template comparableto that for waste to energy and landfill gas to energy.15Modern landfills are post-1993 and are permitted under 40CFR Part 258 Subtitle D. Off-site contamination is regulatorycorrective action required to address off-site impacts togroundwater.16The Vehicle Accident Recordable Rate for 2011 was restatedto account for resolutions of vehicle accident investigationsthat were made following the publication of our 2012 report.

WASTE MANAGEMENT SUSTAINABILITY REPORT 2014 10117Numbers do not add up due to rounding for each commodity.18This figure does not include mixed recyclables (i.e., lowvolumerecyclables not otherwise enumerated) or organics.19To view one of the videos, see to energy has long been recognized — in federal lawand elsewhere — as a renewable energy source. See energy figures include 17 WTE plants and twobiomass-to-energy plants, one using waste wood and theother waste wood and tires. Output in any given year willfluctuate somewhat, reflecting positive or negative economictrends as manifested in the generation of more or less waste.Note that this number includes only energy sold, not theadditional energy generated but used to power the facilitiesthemselves. We are no longer including energy from theFrackville waste coal facility in Pennsylvania because it is notdeemed “renewable” by the EPA, although it is included instate “renewable portfolio” standards. In 2013, Wheelabratorproduced 401,891 MWh of power at its Frackville independentpower facility.23Calculations are based on standard WTE industry reporting:1,000 households per installed megawatt.24Avoided coal use is based on the amount of coal needed ona heat input basis to replace the renewable fuels used forelectricity generation.25See Eileen Brettler Berenyi, Governmental Advisory Associates,Nationwide Economic Benefits of the Waste-to-EnergySector, August 2013, available at Management also produces a small amount of powerfrom wind. In 2013, we sold enough wind power in Oregon topower nearly 24,000 households. This power is not includedin our reporting on our renewable energy sales, which arelimited to base load power production.30Our first SpecFUEL® plant in San Antonio, Texas, will close in2014. That pilot facility paved the way for development ofour second plant that serves the City of Philadelphia.31Note that Waste Management’s figure includes landfill gasused to generate electricity as well as used directly as a fuel,for example, by a nearby manufacturing plant or in leachateevaporation projects. The U.S. Energy Information Administrationreports electrical production from power plants usinglandfill gas as fuel. See 2013, we have modified our reporting to reflect themost current EPA values for global warming potential. Over95 percent of produced landfill gas renewable energy is soldin any given year. The numbers in the table reflect power sold.33We have switched our reporting to reflect megawatt-hourssold, not megawatts installed.34The household conversion is based upon U.S. Energy InformationAdministration data that is updated yearly.35UIC, Terra-Dynamics, and Geosyntec, Municipal Solid WasteLandfill Leachate Characterization Study (Raleigh, NC: EnvironmentalResearch and Education Foundation, 2007).36See were estimated using the EPA’s NONROAD 2012and SmartWay 2012 models for particulate matter andnitrogen oxides, while California Climate Registry conversionfactors were used to estimate emissions of carbon dioxide,methane and nitrous oxide, the primary greenhouse gases.Waste Management vehicle duty cycles are significantlydifferent from the on-road long-haul vehicles for whichSmartWay is designed. The addition of heavy compactingmachinery to our trucks, combined with frequent route stopsand idling while the machinery operates, equates to an effective30 percent reduction in fuel economy. We are taking thelead in working with SmartWay in the near future to refinetheir model to better address our vocational fleet.38Note that our fleet emissions reduction goal is for overallemissions, not a reduction normalized by mile or number ofvehicles. Our emissions reductions come from a combinationof cleaner engines, shifts to natural gas vehicles, andon-board computing and other logistics management toolsto improve routing and fuel efficiency.39See$File/EPA-SAB-12-011-unsigned.pdf.40Both the UN Intergovernmental Panel on Climate Changeand the EPA’s National GHG Emissions Inventory account forcarbon sequestration of undecomposed wood products, yardtrimmings and food wastes disposed of in landfills.41GHG emissions from refrigerant use are de minimis andtherefore are not reflected in the summaries on p. 67 and 69.42Source: EEO1-2012 filings.43Government statistics for 2013 were not yet released whenthis report was produced.44Industry-wide data was not yet available for 2013 when thisreport was produced.45The VARR rate for 2011 was restated to account for resolutionsof vehicle accident investigations that were madefollowing the publication of our 2012 report.46Our 2010 report can be found at that because we report our demographic footprint byline of business, it is easy to identify the impact of divestitureof an individual line of business (e.g., our waste-to-energyand alternative power facilities).48Waste Management realized substantial proceeds from thesale of our operations in Puerto Rico in 2014. We repatriatedthe accumulated cash from our Puerto Rico operations andpaid corresponding U.S. taxes on the distribution.

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