The business case for zero waste
Reducing waste boosts sustainability and drives cost savings. Learn how companies are turning waste reduction into a smart business strategy.
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The business case for zero waste
Reducing waste boosts sustainability and drives cost savings. Learn how companies are turning waste reduction into a smart business strategy.
In 2020, I was directing sustainability and communications at Avocado Mattress, an organic mattress manufacturer. That year, we diverted 69% of waste from the landfill and became the first bedding company to have its Landfill Waste Diversion rated Validated by UL Solutions. By 2024, we had diverted 85% of Avocado’s waste.
This made for a great story. Customers loved our chic zero waste furniture line that used upcycled wood and the fluffy pillows that harnessed latex scraps from the factory floor. Central to our narrative was the genuine positive impact these choices had on the environment. Less waste meant fewer virgin materials to make products and decreased emissions — the program prevented nearly 9,000 metric tons of carbon dioxide equivalent (about the same as removing 2,000 gas-powered vehicles from the road for a year) from entering the atmosphere.
What we didn’t talk about as much is that Avocado’s Project Zero Waste was an absolute boon to the company’s bottom line. By increasing its landfill diversion rate nearly 20%, the company massively decreased costs. For example, by being more intentional with its waste management, Avocado upcycled or recycled 477 tons of wood and 47 tons of organic latex to use on new products.
New research from EcoFocus Worldwide and thinkPARALLAX shows just how pivotal reducing waste is for consumers, too. Asked what the most important environmental practice a company has to follow for them to consider it an environmentally responsible organization, 71% of those surveyed said reducing waste comes first.
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Reducing waste is just good business. Which is why it’s no fringe thing. In 2023, Target diverted 85% of its operational waste and 60% of construction waste and has a goal to reach a 90% waste diversion rate by 2030. Intel, for its part, is working on having zero waste status for 60% of its waste streams by 2030. Procter & Gamble has achieved a 73% waste diversion rate and is committed to producing 100% recyclable or reusable packaging by 2030. And all Subaru products are manufactured in zero-landfill production plants.
With zero waste initiatives, these companies are enjoying big cost reductions. Savings come from reduced fees from disposing of waste and purchasing fewer materials by capturing the value of materials through reuse and recycling. According to one study, waste costs healthcare organizations somewhere between $760 billion and $935 billion each year. Additional research showed that for every $1 companies invested to reduce food loss and waste, they saved $14 in operating costs.
Read more: How to embed sustainability into your company’s core
So if reducing waste is good marketing, a savvy investment, and an impactful environmental choice, why don’t more companies do it? Because it’s not easy. Companies need to undergo a comprehensive waste audit, which involves analyzing every step of their operations to identify where waste is generated and how it can be minimized or repurposed. This process can be time-consuming and requires the collaboration of multiple departments, from manufacturing to supply chain management. Once the audit is completed, companies must develop intentional strategies to tackle the specific types of waste they produce. This might involve redesigning products, improving packaging, establishing partnerships with recycling organizations, or investing in new technologies for waste reduction. Additionally, implementing a successful waste management program often requires cultural change, employee training, and ongoing monitoring to ensure compliance and improvement over time. Not surprisingly, this complexity often deters companies from fully embracing waste reduction initiatives, despite the clear environmental and financial benefits.
At Avocado, we knew getting the marketing and sustainability teams excited about the zero waste program wasn’t enough. We had to get buy-in across the entire company, embedding the project into the core of how we operated. That meant bringing everyone on board — from our recycling and upcycling partners to the c-suite, and especially our manufacturing employees. The factory floor team, the ones responsible for sorting and handling materials, were essential to making the program work. We didn’t just show them how to do it — we made sure they understood why it mattered. That "why" was the key to achieving our ambitious zero waste goals — and the businesses reaped tremendous benefits because we did.
Need help analyzing your supply chain and reducing waste? We’re here to help. Reach out to book a meeting with one of our sustainability experts anytime.
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