Integration Of Smart Technologies In Transfer Stations And Material Recovery Facilities

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Integration Of Smart Technologies In Transfer Stations And Material Recovery Facilities
Integration Of Smart Technologies In Transfer Stations And Material Recovery Facilities
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SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Infrastructure
Waste Management
Business Model Description

Invest in B2B models that sell and lease smart technology solutions directly to Transfer Stations and MRF (Material Recovery Facility) operators. Additionally, B2G models sell and lease solutions to government entities that oversee waste management. Revenue is generated through these sales, leasing of equipment, as well as maintenance contracts and support services. They may also offer subscription-based services for data analytics tools. Examples of companies active in this space are:

Arachem is an engineering company that produces a range of equipment including smart technologies for waste management. These include fluid mixers, waste sorters, weighing systems, grinders, dryers and ancillary equipment such as filters and pumps. Arachem's estimated revenue is between USD 25 million - USD 100 million per annum (54).

Tomra is a Norwegien MNC with a branch in Malaysia. Tomra offers advanced sensor-based sorting systems under the range 'AUTOSORT' which facilitates effective waste recovery. Their Tomra Insights platform enables data-driven optimization of sorting processes through online monitoring. Tomra is a publicly listed company and generated total revenues of about USD 1.27 billion in 2022 (52).

Eriez is an American MNC with a branch in Johor, Malaysia. Eriez designs and engineers' magnetic separation technologies with advanced metal detection systems. They also offer vibrating conveyors, feeding systems and automated sorting technologies. In 2022, Eriez generated a total revenue of USD 190 million (53).

Expected Impact

Enhance the efficiency of waste sorting, treatment and recycling, decrease pollution, enhance circular economy, and increase environmental and community health.

How is this information gathered?
Updated: 18 Jun, 2023
Malaysia
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
< 5% (in ROI)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Sustainable Cities and Communities (SDG 11) Responsible Consumption and Production (SDG 12) Life on Land (SDG 15)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Reduced Inequalities (SDG 10) Climate Action (SDG 13) Gender Equality (SDG 5)

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Sector Sources
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IOA Sources
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The plastic Crisis Must Be on the Feminist Agenda. https://th.boell.org/en/2022/03/18/plastic-crisis-must-be-feminist-agenda. 27) MIDA. The Preferred Approach for Waste Management in Malaysia. https://www.mida.gov.my/waste-to-energy-wte-the-preferred-approach-for-waste-management-in-malaysia/. 28) Constantin. 2017. Solid Waste Management in Rural Areas. https://www.researchgate.net/publication/319668416_Solid_Waste_Management_in_Rural_Areas 29) Vinti, Giovanni, and Mentore Vaccari. 2022. Solid Waste Management in Rural Communities of Developing Countries: An Overview of Challenges and Opportunities. https://doi.org/10.3390/cleantechnol4040069. 30) Ministry of Women, Family and Community Development. 2021. Statistics on Women, Family and Community. https://www.kpwkm.gov.my/kpwkm/uploads/files/Penerbitan/Buku%20Perangkaan/e-book%E2%80%A2KPWKM%202020-2021%20291122.pdf.r=column/cthemeByCat&cat=509&bul_id=ZFRzTG9ubTkveFR4YUY2OXdNNk1GZz09&menu_id=L0pheU43NWJwRWVSZklWdzQ4TlhUUT09. 31) New Straits Times. 2022. Can Malaysia achieve 40 per cent recycling rate by 2025?. https://www.nst.com.my/news/nation/2022/03/778625/can-malaysia-achieve-40-cent-recycling-rate-2025. 32) Ministry of Foreign Affairs of the Netherlands. 2021. Circular Economy Opportunities in Malaysia. https://www.rvo.nl/sites/default/files/2022/03/Malaysia%20Booster%20Programme.pdf. 33) New Straits Times. 2022. New sustainability commitments an opportunity to uplift Malaysia's informal sector. https://www.nst.com.my/opinion/columnists/2022/11/849477/new-sustainability-commitments-opportunity-uplift-malaysias. 34) Ministry of Economic Affairs. 2019. Shared Prosperity Vision 2030 (SPV 2030): Restructuring Malaysia's Development Priorities. https://www.epu.gov.my/sites/default/files/2020-02/Shared%20Prosperity%20Vision%202030.pdf. 35) UN Department of Economic and Social Affairs. 2022. SDG Indicators Database. https://unstats.un.org/sdgs/dataportal/database. 36) Ministry of Natural Resources, Environment and Climate Change. 2022. Malaysia’s Fourth Biennial Update Report. https://unfccc.int/sites/default/files/resource/MY%20BUR4_2022.pdf. 37) Nor Faiza M.T., Noor Artika H. and Yusof M.Z.. 2019. Health Care Waste Management and Sustainable Development Goals in Malaysia. https://jwbm.com.my/archives/1jwbm2019/1jwbm2019-18-20.pdf. 38) Muhamad Azahar Abas, et al. 2022. Technology adoption for municipal solid waste management (MSWM) in Malaysia. https://www.researchgate.net/publication/361272960_Technology_adoption_for_municipal_solid_waste_management_MSWM_in_Malaysia. 39) Government of Malaysia. 1974. Law of Malaysia, Act 127, Environment Quality Act 1974. https://www.env.go.jp/en/recycle/asian_net/Country_Information/Law_N_Regulation/Malaysia/Malaysia_mal13278.pdf. 40) UNEP. 2019. When waste works for women. https://www.unep.org/news-and-stories/story/when-waste-works-women. 41) DOSM. 2022. Compedium of Environmental Statistics 2022. https://newss.statistics.gov.my/newss-portalx/ep/epFreeDownloadContentSearch.seam?contentId=173474&actionMethod=ep%2FepFreeDownloadContentSearch.xhtml%3AcontentAction.doDisplayContent&cid=62872. 42) US International Trade Administration. 2023. MALAYSIA WASTE MANAGEMENT SOLUTIONS. https://www.trade.gov/market-intelligence/malaysia-waste-management-solutions#:~:text=According%20to%20the%20National%20Solid,is%20done%20to%20reduce%20waste. 43) Department of Environment, Malaysia. List of licensed scheduled waste facility/ transporter. https://eswis.doe.gov.my/facilitylist.aspx. 44) The Malay Mail. 2019. Selangor aims to improve recycling practice. https://www.malaymail.com/news/malaysia/2019/11/02/selangor-aims-to-improve-recycling-practice/1806250. 45) Government of Malaysia. 2022. Malaysia's Update of its Nationally Determined Contribution. https://unfccc.int/sites/default/files/NDC/2022-06/Malaysia%20NDC%20Updated%20Submission%20to%20UNFCCC%20July%202021%20final.pdf. 46) Department of Statistics Malaysia, 2022. Labour Force Statistics Report https://www.dosm.gov.my/v1/uploads/files/1_Articles_By_Themes/Labour_Force/Monthly/2022/LABOUR%20FORCE%20REPORT%20MARCH%202022.pdf2 47) Department of Statistics Malaysia, 2023. Annual Economic Statistics Subsector Water Supply, Sewerage, Waste Management and Remediation Activities https://www.dosm.gov.my/portal-main/release-content/3f64779d-8ba9-11ed-96a6-1866daa77ef9 48) DOSM. 2023. Employment Statistics. https://www.dosm.gov.my/portal-main/release-content/c77dc3c3-8b7c-11ed-96a6-1866daa77ef9. 49) Kong et al. 2020. Socio-Economic Factors Related to Drinking Water Source and Sanitation in Malaysia. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7672613/ 50) Lukman et al. 2022. Solid Waste Disposal Practices Among Rural Community in Pasir Mas, Kelantan, Malaysia. https://iopscience.iop.org/article/10.1088/1755-1315/1102/1/012081 51) Soomro et al. 2023. Understanding barriers and motivations in solid waste management from Malaysian industries: a comparative analysis. https://link.springer.com/article/10.1007/s11356-022-22558-z 54) Signal Hire. 2023. Arachem (M) Sdn Bhd Overview. https://www.signalhire.com/companies/arachem-m-sdn-bhd 52) Tomra. 2023. About Tomra. https://www.tomra.com/en. 53) Zippia. 2023. Eriez Revenue. https://www.zippia.com/eriez-careers-22731/revenue/ 55) Government of Malaysia. Industry4WRD Policy. 2018. https://www.miti.gov.my/index.php/pages/view/48322 56) Government of Malaysia. 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