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Covanta and SFS: Empowering sustainable waste solutions

Covanta emerges as a champion of innovation as landfill capacities shrink and demand for sustainable waste management rises.

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JULY 2023

In the face of shrinking landfill capacity and the rising demand for sustainable waste management, Covanta, a leading waste-to-energy company based in the United States, has emerged as a champion of innovative and environmentally friendly solutions. Covanta's commitment to addressing waste disposal challenges while promoting resource reuse has received substantial support from Siemens Financial Services (SFS), reinforcing our mission to create a sustainable future.

SFS provided a sustainability-linked loan to Covanta. The financing incorporates key performance indicators (KPIs) that incentivize a 2.5% growth in sustainable waste processed and a 25% increase in waste recycling and reuse between 2020 and 2025.

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Central to Covanta's sustainable waste management approach is its network of state-of-the-art Waste-to-Energy facilities. Each year, Covanta processes approximately 21 million tons of waste, generating a remarkable 10 million MWh of electricity, enough to power one million homes, and recycling 600,000 tons of metal. By adopting Waste-to-Energy technology, Covanta not only reduces landfill volumes by 90%, but also eliminates nearly one ton of greenhouse gas emissions per ton of municipal solid waste.

Through the achievement of the specific KPIs outlined in the sustainability-linked loan agreement, Covanta will divert a greater amount of waste from landfills, resulting in a significant reduction in emissions and fostering the development of a circular economy. The circular economy model promotes the reuse and recycling of materials, contributing to a more sustainable and resource-efficient future.

The collaboration between Covanta and Siemens extends beyond financing. Siemens supplies a wide range of equipment, including turbine generators and high-voltage circuit breakers. This long-standing relationship exemplifies Siemens' commitment to fostering sustainable solutions and promoting environmental stewardship.

Brad Helgeson, the CFO of Covanta, highlights the value of SFS’ strategic support, stating, "Covanta values the strong strategic support of Siemens Financial Services. As a world leader in waste and energy solutions, sustainability is intertwined into every facet of our business. It is what drives us to innovate, grow, and challenge ourselves - and it is why these incentivized goals are so important."

The collaboration between SFS and Covanta represents a significant stride toward achieving a more sustainable waste management landscape. Through this relationship, we help lead the way towards a future where waste is transformed into valuable resources, greenhouse gas emissions are reduced, and the circular economy thrives.

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