Business as Usual Is Costing You: Why It’s Time to Audit Your Waste
With rising disposal costs and tightening regulations, maintaining a “business as usual” approach to waste management can be a costly oversight. For property managers and business owners, waste is often an untapped area for improving operational efficiency and cost savings. A waste audit can reveal meaningful opportunities to cut costs, strengthen sustainability initiatives, and ensure compliance with state and local mandates like California’s SB 1383. One of the most valuable outcomes of a waste audit is a clear understanding of your diversion rate, a metric that is rapidly becoming essential for both regulatory compliance and environmental reporting.
What Is a Diversion Rate and Why Does It Matter?
A diversion rate measures how much of your waste is being redirected away from landfills through recycling, composting, or reuse. It’s calculated as the ratio of diverted materials to total waste generated, by weight, volume, or another unit. However, don’t be fooled, equal-sized trash and recycling bins do not mean a 50% diversion rate. Different materials have varying densities, so true measurement must be data driven. It’s also important to account for any waste reduction or elimination efforts, as these contribute significantly to overall diversion and should be factored into the final calculation.
Increasing your diversion rate is more than just a feel-good sustainability win. Improper waste management is a major contributor to climate change, while landfilling and incineration are costly and are unsustainable long-term solutions. Businesses that prioritize landfill diversion often uncover hidden savings and improve their environmental impact simultaneously.
Who Cares About Diversion Rates?
The pressure to improve diversion comes from multiple sources:
- Building ownership and management want efficient operations and ESG reporting.
- Tenants increasingly expect sustainable practices.
- Regulatory bodies like counties and states enforce minimum standards.
- Global ESG frameworks look at diversion as a key performance metric.
- Green certification programs such as LEED and TRUE Zero Waste often require, or strongly recommend, conducting a waste audit as part of their sustainability criteria.
Why Conduct a Waste Audit?
A waste audit is an important step in understanding how waste is generated and managed on your property. It lays the foundation for smarter, more sustainable decisions. Key benefits include:
- Cost Savings: Identifying recyclables in trash bins or overfilled dumpsters can help reduce service frequency and avoid contamination fees.
- Improved Diversion Rates: Knowing what’s being thrown away helps set realistic and achievable diversion goals.
- Regulatory Compliance: Laws like SB 1383 require proper sorting of organics and recyclables, audits help verify adherence and avoid penalties.
- Enhanced Sustainability: With clear and specific data, you can implement targeted programs that cut waste and improve environmental performance.
Opportunities Revealed
When it comes to waste, one of the most common misconceptions is that it’s all just “trash.” But the truth is far more nuanced, and far more useful. A well-executed waste audit reveals the diversity within your waste stream, uncovering everything from improperly sorted recyclables and organic waste to overlooked opportunities for donation, reuse, and reduction. Understanding what’s being thrown away is one of the most important (and often eye-opening) steps in developing a smarter, more sustainable waste management strategy.
Waste audit findings often tell a story—sometimes surprising, sometimes frustrating, but always informative. You might discover that your bins are full of recyclable cardboard, uneaten food, or even materials that could be reused on-site. These insights help answer critical questions: Are the right bins in the right places? Are staff and tenants using them correctly? Is your hauler providing the appropriate service levels? And most importantly, what can be reduced, reused, or recovered instead of trashed?
Not all waste audits are the same, and not every property needs the same approach. A high-rise office building will generate a different stream than a retail center or hotel. That’s why tailoring your audit to your property type and sustainability goals is key. Some audits focus on diversion rates; others look closely at contamination or organics; some prioritize compliance, while others are more about cost reduction.
Before we dive into how to conduct a waste audit, let’s take a closer look at the types of waste audits available, and how to choose the right one for your site. Because when it comes to waste, knowing what you’ve got is the first step in figuring out what to do about it.
A Successful Case Study for Diversion Rate Improvement
In 2023, Waste Not Consulting was engaged to conduct an annual waste audit for a multi-tenant commercial property in Irvine, California. The data collected revealed several key opportunities to reduce waste generation and improve the property’s overall diversion performance.
The audit identified a significant volume of single-use food ware and organic waste, particularly food scraps and non-food organics such as restroom paper towels, within the waste stream. In response, building management implemented targeted changes: janitorial staff were directed to dispose of restroom paper towels in the organics bin for collection by the hauler, and tenants were encouraged to switch to reusable alternatives and participate in the building’s organics recycling program.
These strategic, data-driven adjustments led to measurable improvements. By the time of the follow-up audit in 2024, the building’s diversion rate had increased from 60% to 70%. Additionally, reduced reliance on single-use items resulted in cost savings, showcasing the value of regular waste audits in driving sustainable practices and operational efficiency.
Posted 5/16/25
About the Author
Ashlee Baker (ashlee@wastenotconsulting.com), TRUE Advisor, Co-Founder and Director of Sustainability at Waste Not Consulting, is a passionate leader with a proven track record of guiding organizations toward zero waste and circular economy solutions. With a strong background in both strategic consulting and on-the-ground implementation, Ashlee excels at bridging the gap between ambitious sustainability goals and practical execution. Her expertise spans zero landfill initiatives, waste reduction planning, and stakeholder engagement across diverse sectors, from national property managers to community-based businesses. Committed to making sustainability actionable and measurable, Ashlee empowers clients to rethink waste and embrace more resilient, responsible systems.
