This month we highlight Cleanaway Waste Management (CWY.ASX) as a Shariah-compliant investment.
Cleanaway Waste Management operates across the entire waste management value chain of collections, recycling and resource recovery, as well as treatment and disposal. CWY also operates in most sectors of the Australian economy and market segments, including residential (council collections), small to medium enterprises, and commercial and industrial.
Recent global developments limiting domestic waste exports, combined with the growing community awareness of sustainability, has pushed economies to divert waste from landfill and develop the necessary infrastructure to increase waste recycling. This provides CWY with a significant opportunity to invest and implement its circular economy strategy. This strategy focuses on reusing and recycling resources, limiting materials sent to landfills, and increasing the amount of recycled plastic, cardboard, glass and other recycled products. In addition, this will increase domestic manufacturing requirements and job creation in related fields over the medium term.
CWY and other key industry participants have lobbied state and federal governments on the importance of separating waste at the source. This includes separate residential food organics and glass bins and introducing glass/plastic container deposit schemes. Additionally, CWY has increased their investment in waste-sorting equipment. From a sustainability perspective, these actions will reduce harmful carbon dioxide emissions, reduce plastic waste in the environment and provide cleaner recyclable waste streams to operators, creating high-value recycled content with higher use and value in the economy.