Composting: The ESG Opportunity Beneath Our Feet
- EcoVision
- 1 hour ago
- 3 min read
What Does Composting Really Mean for Business?
Composting is the managed, oxygen-based decomposition of organic materials—such as food scraps, coffee grounds, garden waste and untreated paper—into a stable, nutrient-rich soil amendment.
In simple terms, it turns “waste” back into a usable resource.
Unlike landfill disposal, where organic waste breaks down without oxygen and releases methane, composting keeps valuable nutrients in circulation and supports healthier soils.
Why Is Food Waste Now a Boardroom Issue?
Food waste is no longer just an operational nuisance behind kitchens, offices or retail stores. UNEP estimates that 1.05 billion tonnes of food were wasted globally in 2022—almost one-fifth of the food available to consumers.
Food loss and waste are also responsible for an estimated 8–10% of global greenhouse-gas emissions.
For businesses, this represents avoidable purchasing cost, disposal cost, carbon exposure and reputational risk. (unep.org)
The most commercially sensible strategy is not simply to compost more. It is to follow the waste hierarchy: prevent surplus food first, redistribute edible food where possible, then compost or recycle unavoidable organic waste.
Composting is therefore not a substitute for better inventory, menu design or procurement discipline—it is the responsible solution for what cannot be avoided.
Can Composting Deliver Real ESG Value?
Yes—when the programme is designed around clean source separation, reliable collection partners and measurable outcomes.
Organic waste mixed with plastics, glass or packaging quickly loses its recovery value.
But when food waste is separated at source, businesses can reduce landfill dependency, improve waste-data quality and create a clearer circular-economy story for customers, employees and investors.
The business case is increasingly visible.
ReFED estimates that a US$16 billion annual investment in food-waste solutions over ten years could produce US$60.8 billion in net financial benefit—a 3.8x return—while avoiding significant emissions and landfill disposal.
What Can We Learn from Recent Business Practice?
Hospitality is showing what practical circularity can look like. In its 2025 sustainability report, Shangri-La reported on-site composting at 11 hotels, converting 224 tonnes of food waste into compost for hotel gardens and other uses.
This is not merely a sustainability campaign; it connects kitchen operations, landscaping, procurement, staff engagement and guest experience in one visible loop. (can also think about the social impacts and social "S" factors too)
Hong Kong is also expanding its food-waste recovery ecosystem. Government data indicate that recovered food waste rose from around 280 tonnes per day in 2024 to around 350 tonnes per day in 2025—an increase of approximately 26%.
The city’s organic-resource recovery infrastructure demonstrates a critical point for businesses: separation at source is the gateway to treatment, whether through composting or anaerobic digestion.
How Should ESG Reporting Capture the Opportunity?
For organisations where waste is material, GRI 306: Waste is highly relevant. It supports disclosure of waste generation, waste composition, prevention actions and waste diverted from disposal; composting can be identified as a specific recovery operation.
For investor-focused reporting, composting should be discussed under ISSB IFRS S1 only where waste-related costs, regulation, supply-chain resilience, brand value or resource dependency could reasonably affect business prospects.
IFRS S1 asks companies to assess material sustainability-related risks and opportunities across the value chain, with metrics and targets that management actually uses.
Where Should Leaders Start?
Start small, but start with evidence: conduct a waste audit; measure food waste by weight and source; set a contamination threshold; prioritise prevention; appoint accountable site champions; and report monthly diversion, cost and participation data.
The best composting programme is not the one with the biggest publicity—it is the one that makes waste prevention and resource recovery part of normal business discipline.
Composting may appear humble.
Yet in a world under pressure to cut emissions, protect nature and use resources wisely, it is one of the most tangible ways to turn ESG commitments into daily operational action.
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