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WASTE FINANCE MANAGEMENT

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OVERVIEW

Environmental and sustainability impact are common threads across our content and functionality but what of financial impact. It is more than likely that most companies and organisations do not fully realize the true cost of waste. Given the topic or nature of waste, more often cost is accepted as fixed given that waste is that immovable nuisance that is a natural result of commercial activity and growth.

Experience has show that in financial terms, waste often gets a free pass when it comes to payment of invoices. Unlike other purchase ledgers where cost is scrutinized, waste is just that thing that must be paid. Too, there is often a disconnect between waste programme and financial teams. Waste programme teams are tasked with ensuring that waste exits their sites quickly whilst meeting compliance mandates. Finance team most ensure that vendors are paid so that services are not interrupted. Between those missions dedicated scrutiny is more often not assigned fully.

It is observable that waste accounting generally concentrates on vendor invoices. Unlike many tenders where costs are fixed, waste is generally variable even more so in time of company growth. Beyond vendor invoices there are many more costs that are often unseen or where other costs are just not instantly connected to waste activities. Costs of audits, onsite real estate usage or third-party facilitation, when true costs are made visible, it might set a pause when the light of real financial impact is clear.

For many waste programme leaders who wish to drive their sustainability goals they are often restricted by a lack of resources including financial capital. It is a rock and a hard place where day to day priority is to get materials off site quickly whilst being tasked to improve sustainability. Eiravato, devised, designed, and deployed in real industry settings has encountered this imbalance. In designing our Finance tool, we did not set out to just record waste invoices, rather we took a 360-mission view whereby first we create absolutely clarity as to the real cost of waste, then strip those costs apart to identify potential savings through efficiency. By identifying those savings, waste programme leaders can re-use those savings to fund their own Sustainable projects with the result of reducing the need to seek capex.

Eiravato finance tool captures all direct and connective waste costs that creates clarity. To protect against vendor price fluctuations, we embed a Waste Cost Index that alerts as to those fluctuations whether positive or negative. Internal scrutiny highlights cost inefficiencies or poor value for money activities. When connected to lifecycle management lean practices, whilst making materials more sustainable, to we make material more cost effective.

 

During development of Eiravato we heard many times it being said by industry that ‘waste is not our business’. Rather than rejecting that theory outright, we set out to build common ground. For leading global companies, our service provision is to make your waste our business where when relating to waste costs we can act as a virtual waste cost financial oversight partner.