History
In 1893, Harm Huizenga, a Dutch immigrant, began hauling garbage at $1.25/wagon in Chicago. [7] In 1968, Harm's grandson Wayne Huizenga, Dean Buntrock, and Larry Beck founded Waste Management, Inc. and began aggressively purchasing many of the smaller garbage collection services across the country. In 1971, Waste Management went public, and by 1972, the company had made 133 acquisitions with $82 million in revenue. It had 60,000 commercial and industrial accounts and 600,000 residential customers in 19 states and the provinces of Ontario and Quebec. In the 1980s, Waste Management acquired Service Corporation of America (SCA) to become the largest waste hauler in the country.
Between the years of 1976 and 1997, the executive officers of Waste Management, Inc. began "cooking" the accounting books by refusing to record expenses necessary to write off the costs of unsuccessful and abandoned landfill development projects; establishing inflated environmental reserves (liabilities) in connection with acquisitions so that the excess reserves could be used to avoid recording unrelated operating expenses, improperly capitalizing a variety of expenses; failing to establish sufficient reserves (liabilities) to pay for income taxes and other expenses; avoiding depreciation expenses on their garbage trucks by both assigning unsupported and inflating salvage values and extending their useful lives; assigned arbitrary salvage values to other assets that previously had no salvage value; failed to record expenses for decreases in the value of landfills as they were filled with waste, used netting to eliminate approximately $490 million in current period operating expenses and accumulated prior period accounting misstatements by offsetting them against unrelated one-time gains on the sale or exchange of assets; and used geography entries to move tens of millions of dollars between various line items on the company's income statement. [8] Officers were accused of making "the financials look the way we want to show them." The top officers settled with the federal government for $30.8 million in 2005, without admitting guilt. [9]
When a new CEO took charge of the company in 1997, he ordered a review of the company's accounting practices in 1997. In 1998 Waste Management restated its 1992–1997 earnings by $1.7 billion, making it the largest restatement in history.
In 1998 Waste Management merged with USA Waste Services, Inc. USA Waste Services CEO John E. Drury retained the chairmanship and CEO position of the combined company. Waste Management then relocated its headquarters from Chicago to Houston. The merged company retained the Waste Management brand. In late 1999, John Drury stepped down as chairman due to brain surgery. Rodney R. Proto then took the position of chairman and CEO. That year also brought trouble for the newly expanded company in the form of an accounting scandal.
In November 1999, turn-around CE was brought in to help Waste Management recover. The company has since implemented new technologies, safety standards, and operational practices. [10]
On July 14, 2008, Waste Management offered a $34 per share all-cash bid to acquire arch-competitor Republic Services, Inc. [11] [12] On August 11, 2008, the bid was raised to $37 per share. On August 15, 2008, Republic Services, Inc. denied Waste Management's bid for a second time. On October 13, 2008, Waste Management withdrew its bid for Republic Services, citing financial market turmoil. [13]
In January 2009, a global economic crisis forced Waste Management to aggressively reduce and restructure its corporate workforce.
In 2015, Winters Brothers assumed all of WM's operations in Connecticut and New York (excluding New York City, and continues to service these regions under contract with WM. [14]
Rebranding to WM
In February 2022, Waste Management announced the company would be rebranding to be referred to simply as WM. This came with an increased emphasis on sustainability and environmental services, and not just waste collection and disposal. [4] [5]
WM agreed a deal to acquire Stericycle Inc for $7.2 billion, in May 2024. Stericycle is a medical waste and paper shredding company based in Illinois, with the deal anticipated to close in Q4 2024. [15]
Corporate issues
1995 lawsuit
Shareholders sued Wheelabrator Technologies's (WTI) board of directors for breach of their fiduciary duty, challenging the merger of WTI into Waste Management. In 1995, the case, In re Wheelabrator Technologies, Inc. Shareholders Litigation, came before the Court of Chancery of Delaware on an appeal regarding the Board's motion for summary judgment. The shareholders argued the Board breached their duty of care because there was not sufficient process, they didn't look at alternative transactions, didn't consider information regarding waste's legal liabilities, they didn't appoint a committee of independent directors to negotiate the merger, and they didn't adequately consider the terms of the merger; they breached their duty of loyalty, and; they breached their duty to disclose relevant information regarding the merger. Ultimately, the court dismissed the duty of disclosure claim but allowed the duty of loyalty claim to a degree. In regards to the duty of loyalty claim, the court disagreed with both the shareholders and the Board. It labelled the merger as an interested transaction, not a controlled shareholder transaction, so the business judgment rule applies and the burden to prove waste is on the shareholders. [24] [25]
Accounting improprieties
Revelations of irregular accounting led to a major drop in stock price and to the replacement of top executives after a new CEO ordered a review of the company's accounting practices in 1998. Waste Management's shareholders lost more than $6 billion in the market value of their investments when the stock price plummeted by more than 33%. [9] The company had augmented the depreciation time length for their property, plant, and equipment, artificially inflating the company's after-tax profits by US$1.7 billion. On July 8, 1999, a class action lawsuit was filed against WMI and certain officers for issuing false statements. Waste Management paid US$457 million to settle a shareholder class-action suit in 2003. The SEC fined Waste Management's independent auditor, Arthur Andersen, US$7 million for its role. [26] [27]
ERP software implementation failure
In 2005, Waste Management entered into a Software Licensing Agreement (SLA) with SAP AG. Under the agreement, SAP and its wholly owned subsidiary, Tomorrow Now, were to implement SAP's Enterprise Resource Planning software. The implementation began when an eight month pilot program was established in Waste Management's New Mexico market area, the market-share area at the time. This initial implementation was to be followed in two months with a company-wide implementation from Waste Management's headquarters in Houston, Texas. [28]
In December 2007, Waste Management ended their ERP implementation effort. Waste Management characterized the ERP implementation as non-functional. An SAP sponsored "Solution Review" determined that a customized ERP, based upon an updated SAP ERP, would need to be made in order to accommodate a company-wide implementation.
Waste Management sued SAP for the US$100 million to recover the funds it had spent on the failed ERP implementation. [29] In the lawsuit, Waste Management accused SAP of fraud and deception. SAP countered that Waste Management failed to present knowledgeable workers and accurate business models and failed to migrate data from legacy systems. The suit concluded in 2010 under confidential terms and a one time payment from SAP to Waste Management disclosed to the SEC. [30]
Environmental policy and record
In 1990, the board of Waste Management adopted an environmental policy, including a policy of no-net-loss of biodiversity on the company’s properties. [34] [35] Waste Management also took positions around that time supporting legislation on hazardous waste reduction (1988), [36] waste export control (1989), [37] and protection of endangered species (1992). [38]
Waste Management's operations consist of environmental protection, groundwater protection, environmental engineering, and air and gas management. Waste Management currently operates ten full-scale waste treatment landfill projects in the U.S. and Canada. As a member of the Chicago Climate Exchange (CCX), Waste Management made a commitment during the pilot phase to reduce its greenhouse gas emissions by four percent below the average of its 1998–2001 baseline by 2006. [39] They have also replaced nearly 500 diesel-fueled trucks with vehicles that run on 100 percent natural gas. These new garbage and recycling trucks comprise one of the nation's largest fleets of heavy-duty trucks powered exclusively by natural gas. [40]
In November 2009, at Waste Management's Altamont Landfill, a new plant began producing 13,000 gallons a day of LNG fuel from methane gas from the landfill that had fueled an electric power plant since 1969. Waste Management has said that the plant, announced in April 2008, and built and operated by The Linde Group with state funding, is the world's largest facility to convert landfill gas into vehicle fuel. [41] [42] [43]
Waste Management works with environmental groups in the U.S. to set aside land to create and manage wetlands and wildlife habitats. The company's landfills currently provide approximately 21,000 acres (85 km2) of protected land for wildlife; 73 landfills are certified [44] by the Wildlife Habitat Council.
In May 2011, Waste Management's Wheelabrator division agreed to pay a record $7.5 million settlement with the Commonwealth of Massachusetts for a host of environmental violations at its plants in North Andover, Saugus, and Millbury, Massachusetts. The settlement was announced on May 2, 2011 by the Massachusetts Department of Environmental Protection and Attorney General Martha Coakley's office. [45]
A landfill site, also known as a tip, dump, rubbish dump, garbage dump, trash dump, or dumping ground, is a site for the disposal of waste materials. Landfill is the oldest and most common form of waste disposal, although the systematic burial of the waste with daily, intermediate and final covers only began in the 1940s. In the past, refuse was simply left in piles or thrown into pits; in archeology this is known as a midden.
Pay as you throw (PAYT) is a usage-pricing model for disposing of municipal solid waste. Users are charged a rate based on how much waste they present for collection to the municipality or local authority.
The Solid Waste Authority of Central Ohio (SWACO) was established by the Ohio General Assembly in 1989 as part of Ohio House Bill 592, which created Ohio’s current solid waste management planning and regulatory programs. SWACO is a government-run entity responsible for the safe and sanitary management of all solid waste within its district. In this role, it operates the Franklin County Sanitary Landfill, as well as two transfer facilities, all for the benefit of Franklin County, Ohio, and parts of surrounding counties in central Ohio.
There is no national law in the United States that mandates recycling. State and local governments often introduce their own recycling requirements. In 2014, the recycling/composting rate for municipal solid waste in the U.S. was 34.6%. A number of U.S. states, including California, Connecticut, Delaware, Hawaii, Iowa, Maine, Massachusetts, Michigan, New York, Oregon, and Vermont have passed laws that establish deposits or refund values on beverage containers while other jurisdictions rely on recycling goals or landfill bans of recyclable materials.
Dean L. Buntrock is an American businessman and philanthropist most well known for his founding and longtime leadership of Waste Management, Inc., North America's largest waste services company. Over his 40-year career he increased revenue from $1 million to $9 billion.
Allied Waste Industries, Inc. was a Fortune 500 company headquartered in Phoenix, Arizona. A vertically integrated company that owned and operated solid waste collection businesses, recycling facilities, and landfills, it was a leader in the solid waste industry in the United States. It served more than 10 million residential, commercial and industrial customers across 128 major markets in 37 states and Puerto Rico.
Rumpke Sanitary Landfill, more colloquially known as Mount Rumpke or Rumpke Mountain, is one of the largest landfills in the United States located in Colerain Township, Hamilton County, north of Cincinnati, Ohio. It is owned by Rumpke Consolidated Companies, Inc. and occupies over 230 acres (93 ha) of a 440-acre (180 ha) tract of land that the company owns. The landfill receives 2 million tons of household and industrial wastes annually.
Covanta Holding Corporation is a private energy-from-waste and industrial waste management services company headquartered in Morristown, New Jersey. Most of its revenue comes from operating incineration facilities that serve a secondary purpose as power plants that burn trash as fuel. Covanta charges a fee for waste disposal, sells electricity produced in the process, and recovers metal for recycling.
Toronto Solid Waste Management Services is the municipal service that handles the transfer and disposal of garbage as well as the processing and sale of recyclable materials collected through the blue box program in Toronto, Ontario, Canada.
Republic Services, Inc. is a North American waste disposal company whose services include non-hazardous solid waste collection, waste transfer, waste disposal, recycling, and energy services. It is the second largest provider of waste disposal in the United States after Waste Management.
Stericycle, Inc. is a compliance company that specializes in collecting and disposing regulated medical waste, such as medical waste and sharps, pharmaceuticals, hazardous waste, and providing services for recalled and expired goods. It also provides related education and training services, and patient communication services. The company was founded in 1989 and is headquartered in Bannockburn, Illinois, with many more bases of operation around the world, including Medical waste incinerators in Utah and North Carolina.
Waste management in Japan today emphasizes not just the efficient and sanitary collection of waste, but also reduction in waste produced and recycling of waste when possible. This has been influenced by its history, particularly periods of significant economic expansion, as well as its geography as a mountainous country with limited space for landfills. Important forms of waste disposal include incineration, recycling and, to a smaller extent, landfills and land reclamation. Although Japan has made progress since the 1990s in reducing waste produced and encouraging recycling, there is still further progress to be made in reducing reliance on incinerators and the garbage sent to landfills. Challenges also exist in the processing of electronic waste and debris left after natural disasters.
Waste Connections, Inc. is a North American integrated waste services company that provides waste collection, transfer, disposal and recycling services, primarily of solid waste. It has operations in both the United States and Canada. Its headquarters is located in The Woodlands, Texas. It is the third largest waste management company in North America.
Recology, formerly known as Norcal Waste Systems, is a waste management company headquartered in San Francisco, California. The company collects and processes municipal solid waste, reclaiming reusable materials. The company also operates transfer stations, materials recovery facilities (MRFs), a number of landfills, and continues to spearhead renewable energy projects. Recology is the largest organics compost facility operator by volume in the United States.
The former Operating Industries Inc. Landfill is a Superfund site located in Monterey Park, California at 900 N Potrero Grande Drive. From 1948 to 1984, the landfill accepted 30 million tons of solid municipal waste and 300 million US gallons (1,100,000 m3) of liquid chemicals. Accumulating over time, the chemical waste polluted the air, leached into groundwater, and posed a fire hazard, spurring severely critical public health complaints. Recognizing OII Landfill's heavy pollution, EPA placed the financial responsibility of the dump's clean-up on the main waste-contributing companies, winning hundreds of millions of dollars in settlements for the protection of human health and the environment.
Waste management in Russia refers to the legislation, actions and processes pertaining to the management of the various waste types encountered throughout the Russian Federation. The basis of legal governance for waste management in Russia at the federal level is outlined through Federal Law No. 89-FZ, which defines waste as “the remains of raw materials, materials, semi-finished products, other articles or products that have been formed in the process of production or consumption as well as the goods (products) that have lost their consumer properties”.
Statistical data shows that waste management in Winnipeg during the COVID-19 Pandemic.
Turkey generates about 30 million tons of solid municipal waste per year; the annual amount of waste generated per capita amounts to about 400 kilograms. According to Waste Atlas, Turkey's waste collection coverage rate is 77%, whereas its unsound waste disposal rate is 69%. While the country has a strong legal framework in terms of laying down common provisions for waste management, the implementation process has been considered slow since the beginning of 1990s.
GFL Environmental Inc. is a waste management company with headquarters in Toronto, Canada. GFL operates in all provinces in Canada, and currently employs more than 8,850 people. The company provides environmental services to municipal, residential, commercial, industrial and institutional customers. On July 6, 2021, the company announced the formation of the Resource Recovery Alliance (RRA) and an agreement to acquire Canadian Stewardship Services Alliance.
Waste management in South Korea involves waste generation reduction and ensuring maximum recycling of the waste. This includes the appropriate treatment, transport, and disposal of the collected waste. South Korea's Waste Management Law was established in 1986, replacing the Environmental Protection Law (1963) and the Filth and Cleaning Law (1973). This new law aimed to reduce general waste under the waste hierarchy in South Korea. This Waste Management Law imposed a volume-based waste fee system, effective for waste produced by both household and industrial activities.
US$20.426 Billion (Fiscal Year Ended December 31, 2023) [1] 
