ECONOMY

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