Renewi best-in-class ESG approach recognised by S&P
26 May 2021
Standard & Poor Global Ratings (S&P) has increased Renewi’s ESG evaluation score to 83. The updated environmental, social and governance (ESG) evaluation recognises our best in class position.
The high score reflects our focus on recycling and our commitment to develop a circular economy. This focus is aligned with the UN Sustainable Development Goals 13: Climate action; 12: Responsible Production and Consumption; and 11: Sustainable cities and communities.
The higher ESG evaluation is the result of an increase in our ESG Profile Score to 77 from 75, combined with a “Strong” Preparedness Opinion. Both upgraded components reflect progress with our now entwined business and sustainability strategies, which were both launched last year. Under these strategies we will focus on improving our recycling and secondary materials production through investments in circular innovations. In turn these will increase profitability, and our sustainability performance.
We are recognised for our industry leading recycling rate of over 65% and together recycling and recovery rate of over 90%. Our recently launched Mission 75 is expected to increase the recycling rate to 75% over five years. This will reduce carbon emissions caused by the production of virgin materials as well as avoid resource depletion. Each year transporting and processing our customers waste generates around 0.5m tonnes of CO2 equivalents to produce over 8m tonnes of recyclates and secondary materials. Our processing avoids a net 3.1m tonnes of CO2 emissions otherwise caused by the refinement of virgin materials. As a result our contribution to society is beyond carbon neutral.
S&P views our focus on innovation and our collaborations with other companies, using advanced technologies to extend the economic life of waste, to be key in supporting the circular economy and an industry-leading practice. As a pure play waste to product company, Renewi minimises incineration and landfill, and therefore drives down the proportion of inbound waste being sent for energy recovery. We work tirelessly to give new use to waste materials, including producing secondary raw materials.
Governance and risk preparedness are also key to a strong ESG rating. S&P revised our Preparedness score to strong from adequate supported by our “company culture and the Board’s awareness of long-term material risks. It analyzes … risks …and implements mitigation” they go on to say “Renewi recognizes that current law and regulations support its ability to innovate new waste recycling techniques.” Finally they “view positively the fact that Renewi not only considers megatrends, but also implements a “Soft Risk Culture Framework” that identifies behavioral risks within the group.”
“We are proud of this recognition as the best-in-class waste-to-product company following such a thorough evaluation. The score reflects the integration of our business and sustainability strategies. With Mission 75 we aim to increase our recycling rate to 75% by 2025. We will do this by investing in green and circular innovations which also deliver significant profit growth and strong returns.”, says Adam Richford, Head Investor Relations Renewi.