Market Characteristics & Cost Drivers
Risks & Constraints
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Deliver World Class Waste Services solutions that utilize CBRE Preferred and Contracted suppliers providing for sustainable outcomes and long-term supplier relationships in line with CBRE ESG policies
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Ensure best-in-class financial operating models that leverage CBRE’s buying power
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Align global KPI’s and SLA’s to take into consideration mandatory regulations and requirements, in addition to Waste Services reporting including monthly recycling and recovery rates
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Demonstratable value to our clients on optimization of existing services, with a commitment to growing the Circular Economy commensurate with CBRE’s Zero Waste policies
Potential Savings Levers
Objectives & Targets
- Adoption of technology (look for service providers who can adopt such innovations to reduce the final volume of waste disposed into landfills - $115 per tonne average)
- Supplier Competition (competitive bidding based on experience, expertise, value-adds, and transparency in pricing)
- Optimsation of Services strategies (engage with suppliers who can provide training and consultation on effective waste minimization techniques)
- Bundling of services (expert consulting, waste tracking and reporting along with traditional waste management services)
- Rebates (from specialist recycling suppliers )
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Global waste is expected to grow to over 3.50 billion tonnes by 2050, more than double population growth over the same period (The World Bank)
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The market is fragmented and regionally localized (CBRE has over 1500 global suppliers)
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Fastest growing regions are Sub-Saharan Africa, South Asia, and the Middle East and North Africa (The World Bank)
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New regulation in EMEA, AMS and APAC regions combined with labour shortages are increasing costs. Despite these constraints there is a growing trend to implement ESG initiatives
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Cost of transport – average fuel surcharge 12-15%
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Real estate Nearly 40% of global carbon dioxide emissions come from the real estate sector. Of these emissions, approximately 70% are produced by building operations (Forbes)
- Inability to collect credible waste data from CBRE systems and suppliers will impact reporting requirements for clients and corporate reporting’ –need to agree new spend cube sub-categories to enable accurate service / spend reporting
- Regional goals and objectives differ depending upon legislation and maturity of ESG initiatives – no global solution which CBRE can cherry-pick – it will need to solution on a localized level
- As global waste increases so will the costs of traditional disposal due to labour shortages and increases in transportation costs etc
Ver 1.0 (May 23)
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