Sustainability Blueprint

Progress on Goals

To advance our company’s mission, implement our vision for more sustainable waste management, and advance our sustainability performance across all three pillars of sustainability, we have set a series of goals and targets around our material issues. Our current set of goals was developed by our senior leadership team in 2015 and contained a mix of short- and long-term targets. Over time, including in this reporting cycle, we have updated and augmented our targets to sustain our continuous improvement.

SAFETY AND HEALTH

Goal

Performance Indicators

Progress in 2018–2019

Achieve world-class safety and health performance through disciplined continuous improvement, safety leadership at all levels, full employee engagement and an integrated, interdependent world-class safety culture.

Financial Linkage
Organizations with an integrated and interdependent safety culture are more likely to achieve and sustain injury free workplaces and demonstrate outstanding safety management and performance. Safety leadership, teamwork, peer support, trust, open and honest communication, employee engagement at all levels and organizational pride are hallmarks of integrated and interdependent safety cultures. While incident rates and other safety metrics ultimately demonstrate performance, they are lagging indicators and ineffective at tracking the efficacy of cultural development.

Develop and assess the efficacy of safety culture performance metrics. Implement, track and report these metrics to demonstrate measurable improvements in Covanta’s safety culture through the end of 2020.

Achieved:
We have been focused on monitoring leading indicators such as reporting and following up on reported near misses and potential hazards, as well as behavioral safety observations. Sites have been assessing their culture growth/improvement through internal assessments such as the DuPont Bradley Curve. A group of safety professionals is developing an internal tool to assess culture that takes the Bradley Curve to the next level.

Complete a review of our root cause analysis and corrective action process and implement changes as necessary by the end of 2016 to ensure the process adequately evaluates and resolves issues as identified.

Achieved:
Plant sites continue to complete comprehensive root cause analyses for injuries and potential serious near misses. A focus is put on identifying material, human, as well as system causal factors. Findings are shared across the company during monthly review meetings.

Move Beyond Zero by focusing on the three P’s: Participation, Performance, and Potential opportunities for improvement. Will develop and implement focused behavioral safety observation process to capture and report data by 2020.

In Progress:

To date, employees have completed over 24,500 observations in ProcessMap. Observations have been focused on hand safety, Line of Fire hazards, Lockout/Tagout procedures, and heat stress prevention. We have begun reporting 3-P metrics with a focus on improving participation and the identification of potential opportunities for improvement.

ENVIRONMENT

Goal

Performance Indicators

Progress in 2018–2019

Energy-from-Waste (EfW) facilities are subject to stringent regulatory standards that are currently being reviewed by the U.S. Environmental Protection Agency. In addition, acquisitions and organic growth are also creating new challenges. We are committed to 100% compliance with all discharge limits (air, water, etc.) at all facilities while also maintaining emissions at levels consistent with past performance—well below existing standards.

Financial Linkage
100% compliance with discharge limits avoids fines and other monetary penalties. More importantly, we view full and continual compliance with all applicable laws, regulations and permits to be a basic condition of responsible operation. By demonstrating and continuing full compliance, we build our reputation and garner intangible value as a responsible member of the local community.

100% compliance with stack test standards and continuous emission monitor (CEM) reporting limits at all EfW facilities.

In Progress:
99.9% compliance with stack test standards and 99.97% compliance with CEM limits at our EfW facilities for 2018-2019.

100% compliance with discharge limits at Covanta Environmental Solutions (CES) and other new facilities within one year of acquisition.

In Progress:
99.90% compliance with POTW wastewater discharge limits at CES facilities.

Maintain EfW emissions performance gains achieved.

Achieved:
All EfW emissions performance gains were maintained as of the end of 2019.

Set a science-based target and implementation plan by 2022 in line with the level of decarbonization required to keep global temperature increase below 2°C compared to pre-industrial temperatures.

In Progress:

While EfW is a critical element of reducing GHG emissions from the waste management sector today, reaching the levels of GHG reductions that we need by mid-century to stem the largest impacts of climate change will require innovative thinking. This is why we announced this new goal with our 2019 sustainability report.

Implement five projects by 2023 to further reduce emissions in EJ communities.

In Progress:

Installation of new Low NOx technology is currently in various stages of development in nine units at three facilities.

MATERIALS MANAGEMENT

Goal

Performance Indicators

Progress in 2018–2019

Advance sustainable waste management and life-cycle greenhouse gas reductions through increased landfill diversion, greater operational efficiency and expansion of waste reduction, reuse and recycling.

Financial Linkage

Reducing landfill management of ash from energy recovery by finding new beneficial reuse opportunities, and by recovering more usable materials (e.g., metals) prior to disposal, reduces costs and generates new revenues streams. Increasing the tons of wastes avoided, recycled or reused for our clients expands our service offerings and helps meet our clients’ needs, thereby generating additional sources of revenue and potentially longer-term client relationships.

Climate Change Linkage

More sustainable waste and materials management can be a significant source of GHG emissions mitigation. Growing landfill diversion and moving up the waste hierarchy, both for our own operations and for our clients’, are our most powerful drivers in reducing GHG emissions.

By 2020, increase the amount of waste managed through energy recovery and other sustainable waste management operations by 10% relative to a 2014 baseline.

In Progress:

2019 overall tons processed up 4.3% relative to baseline. Current U.K. development pipeline will add another 1.6M tons of capacity.

Increase total wastes avoided, recycled or reused under our management by 100% by 2022 relative to a 2014 baseline of 548,000 tons.

In Progress:

In 2019, we avoided, recycled or reused 1,062,000 tons of waste, an 88% increase in five years. Our total ash processing system (TAPS) will significantly expand these gains.

We have reached 93.8% of this goal.

Achieve additional energy efficiency improvements at our energy recovery facilities of 60,000 MWh in total by the end of 2020.

In Progress:

22,000 MWh of additional energy efficiency improvements, over one-third of our goal of 60,000 MWh, has been completed.

COMMUNITY RELATIONS

Goal

Performance Indicators

Progress in 2018–2019

Expand the number and quality of our community outreach programs.

Financial Linkage
Covanta has been investing in community outreach programs for more than two decades. This comprehensive outreach translates to improved business opportunities, including renewal of existing contracts and favorable permitting terms; strong relationships; and better operational standing.

Update the Community Affairs engagement plan using a new facility-centered process to better integrate community outreach into business management and planning.

In Progress

New engagement plan finalized in Spring 2020 and in-use. Business planning elements will be implemented by the end of 2020.

At each EfW facility, perform a minimum of eight community interactions per year, beginning in 2016, that deliver demonstrative impact to our Protecting Tomorrow programs, local community programs and sustainable solid waste management education.

In Progress:
91.9% of our EfW facilities met the goal. Of the 3 facilities that did not meet the goal, 2 of them completed 7 out of the 8 required elements. The third facility completed 5 out of the 8 requirements.

WORKFORCE ENGAGEMENT

Goal

Performance Indicators

Progress in 2018–2019

Create and maintain an inclusive, respectful and equitable environment that leverages the unique talents, perspectives and experiences of our diverse workforce to help retain top talent, meet and exceed our business objectives, and surpass the expectations of our diverse client communities, business partners and shareholders.

Financial Linkage
Our employees drive our business and our success. Attracting the best talent; hiring and retaining a diverse workforce with regard to age, race, gender, ethnicity and other dimensions of diversity; fostering/encouraging/etc. the inclusion of all employees and their ideas—this fosters innovation and continuous improvement, thereby contributing to reduced costs and revenue growth, including through the development of new businesses and services. A low attrition rate, especially for top performers, means that we can retain qualified and talented individuals, preserve institutional knowledge and reduce recruiting and training costs.

Develop diversity and inclusion educational awareness training for employees and managers. Complete training with 30% of the workforce by the end of 2016 with full completion in the following year.

Achieved:

Training fully completed in 2019. In 2020, we piloted the next installment of Diversity & Inclusion training to focus on Understanding Unconscious Bias and Mitigating Bias in Talent Processes

Create and initiate a mentoring program by the end of 2016 to facilitate the retention, development and advancement of our workforce. Develop and monitor metrics to drive gender, ethnic & racial diversity and senior management participation in the program.

Achieved:
The first wave of the program began in 2017 with a group of 40 mentor/mentee pairs. Currently on the second wave of the program. 18% of mentees were female and 24% were non-white.

Continue to increase the share of diverse gender and race/ethnicity representation at all levels of the organization, and more specifically in leadership positions. Ultimately, we strive to have similar representation as the communities in which we operate and serve.

In Progress:
The share of women and underrepresented groups in management positions reached 20% and 14% respectively in December 2019 (manager and higher).

Sustainability Blueprint

Progress on Goals

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