Waste Equity

Making the most of waste.

Types of Waste Equity

• Product/Process Waste Example: In the

production of strawberry jam there is waste of strawberries throughout. Think of the jam left in the jar. Multiply that weight by a few million.

• Performance Waste Example: In the office

we waste time and resources daily.

What is Waste Equity?

• Waste equity is the hidden value in production and performance that can be tapped into to improve the business or service by making it more green efficient and fairer.

• The equity value is established by assessment of the total value in full consumption and the amount wasted. For example think of an apple and how much you throw away.

W. Edwards Deming and Waste Equity

• Deming in the 1950s proposed to improve profits not through more production but through better production, i.e., by reducing breakages. In other words if you produce ten bottles and two bottles are broken, then by improving quality control you might have one bottle broken. Here you achieve a profit without increasing production. This principle can be applied to waste equity.

The Objectives of Waste Equity

• Waste equity is similar to property equity which is the sum of the difference between the original price paid for it and the current value. In this the sum has future value in terms of investment. The goal would be to free the waste equity as in property equity to pay for waste reduction services and initiate new businesses and services connected to improving the environment

Financing the green changes

Waste Equity

Environment

Business

New Business

Bank

Steps towards Greener business

• If we state that production and performance has a waste to total consumption ratio of 20 to 80. Then we can work with this sum.

• We can borrow against the potential reduction in waste. This will be eight percent. This sum would be used to pay for measures to reduce waste over a period of years.

The benchmarking of Waste Reduction

• Here Demings Cycle can be employed. So too can the EU waste catalogue. We identify the amount of waste

Then utilize 8% W. E.

We reduce by 20 percent

Waste Bonds and vouchers

• In government expenditure, one could issue waste equity bonds for the international and domestic markets. With the same principles, the government could raise a large sum that would be used to finance several ventures including waste related businesses (recycling and services which could be exportable).

Waste Equity Bonds

• The issue of the bonds would be strategic with the option of buying shares in companies connected with waste reduction. The portfolio would be based on the EU waste catalogue. In other words a whole new sector could be created from releasing the waste equity.

Return on Waste Equity

• As more and more waste is reduced, the value of the equity decreases. It is balanced by the revenue from the new services connected to recycling, restoration etc. There is a shift to returns from investment.

Waste equity Investment

Thank you for your time

• If you want to learn more about improving your business or service and tapping into waste equity let me know.

• If you are in the financial sector contact me concerning the issue of bonds and vouchers

• Yours Stephen Pain 15-03-2016• St3pen@yahoo.com

Pareto’s Principle

• If we look at production and performance we can say that roughly 80 percent of them is at the expense of 20 percent waste.

• This is a staggering sum. It should be the focus of every business or service.