Market Characteristics & Cost Drivers

Risks & Constraints

  • 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

  • Ensure best-in-class financial operating models that leverage CBRE’s buying power

  • 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

  • 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 ) 
  • 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)

  • The market is fragmented and regionally localized (CBRE has over 1500 global suppliers)

  • Fastest growing regions are Sub-Saharan Africa, South Asia, and the Middle East and North Africa (The World Bank)

  • 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

  • Cost of transport – average fuel surcharge 12-15%

  • 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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Waste Services & Circular Economy

Category Strategy

Market Intelligence  

Market Intelligence  

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