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2019 Sustainability ReportUpdate Summary

DRIVINGCHANGE

LOOKING BACK AND PLANNING FOR THE FUTURE

Jim Fish President and Chief Executive Officer

Waste Management prepared our first “Environmental Report” in 1992. This was well before we used the term “sustainability,” and before we regularly reported on environmental, social and governance (ESG) principles. We were part of a small group of Fortune 500 companies embarking upon the early days of a commitment to the underlying principles of sustainability. Little did we know where this journey would take us.

Today, our stakeholders value our extensive and informative annual reporting. Waste Management’s full sustainability report is published bi-annually, with updates on the off-year. These updates include the data that we collect each year to track our key performance indicators and our progress towards achieving our goals.

Reporting is one step in our commitment to sustainability. Establishing long-term goals was another important step along our sustainability journey. Waste Management developed its first set of sustainability goals in 2007, well ahead of most companies. We recently updated our goals and we expect to do so again as our industry and our company continue to evolve.

Over the years, Waste Management has continued to increase our commitment to sustainability. Since 2008, we’ve employed a team of internal staff dedicated to working with our customers to help them achieve their sustainability goals. And, at the end of 2018, we created a sustainability team dedicated to tracking and reporting our progress, advocating on sustainability issues, and to supporting our business units by providing sustainability-related information for internal and external stakeholders.

2019 SUSTAINABILITY REPORT UPDATE › CEO MESSAGE

1https://sustainability.wm.com

As we work with our customers, we see that their appetite for sustainable solutions continues to grow. Over the past two years, the level of awareness around sustainability issues has increased. From climate-related storm events and the dialogue around the current challenges in the recycling industry, to the topic of plastic waste in the environment, attention to the environment is increasing.

Never a company to shy away from challenging topics, Waste Management has jumped in to engage in these important issues. We are participating in the international dialogue around marine debris. We have made commitments to recycle plastic domestically, and we are supporting the development of domestic recycling markets.

With much pride and excitement about Waste Management’s past progress and future commitments, I am pleased to present our 2019 Sustainability Report.

In presenting this report, I would like to recognize a pillar at Waste Management who has shepherded our sustainability reporting since 1992. Sue Briggum, our Vice President of Public Affairs, will retire at the end of 2019, leaving a priceless legacy. Sue had the foresight to recognize the value of sustainability long before it was on the radar screen of most companies or investors.

We thank her for her decades of wisdom in establishing and ensuring a strong foundation for the future of sustainability at Waste Management.

And in case you doubt whether one person can make a difference, here is an example of one individual’s unwavering commitment to making the world a better place.

Respectfully,

Jim Fish President and Chief Executive Officer

Over the past two years, the level of awareness around

sustainability issues has increased.

2019 SUSTAINABILITY REPORT UPDATE › CEO MESSAGE


WASTE MANAGEMENTAt-A-Glance

(as of and for the year ended December 31, 2018)

* Waste Management, Inc. is a holding company, and all operations are conducted by its subsidiaries. References to “Waste Management,” “the Company” or “WM” refer to Waste Management, Inc. and its consolidated subsidiaries, unless context provides otherwise.

wildlife habitat programs83 pollinator

programs63 habitat, species and education programs ‘on-the-ground’

255 acres of certified habitats

19.8K

CONSERVATION

Waste Management, Inc. (NYSE: WM), based in Houston, Texas, is the leading provider of comprehensive waste management environmental services in North America.

GIVING

total donated in charitable giving

$14.9M

in-kind services

$1.9Mtransfer facilities

314employees43.7K

entities served

20M

OPERATIONS*

alternative fuel vehicles

7,944natural gas

fueling stations

132

landfill gas-to-electricity

facilities

130

ENERGY

active solid waste landfills

247

$14.9B Total Revenue

active hazardous waste landfills

5

returned to shareholders

$1.8B

FINANCIALSRECYCLING

LANDFILLS

cash from operations

$3.6B11construction

and demolition recycling facilities capital

expenditures

$1.7B

16other

4CORe®

facilities

2dual stream

recycling facilities

29commercial

facilities 40composting/chipping/

grinding facilities

46single-stream

recycling facilities

2019 SUSTAINABILITY REPORT UPDATE › AT-A-GLANCE


Waste Management Sustainability Goals — 2010-2038RECYCLABLES MANAGED (in million tons)

2007 2015 2016 2018

8.0

14.0 14.7 15.2

2017

15.3

2038GOAL

17.318.016.014.012.010.08.06.0

WASTE-BASED ENERGY PRODUCTION (MTCO2e)

2015 2016 2017 2018

2.5 2.5 2.4 2.6

2038GOAL

2.63.0

2.0

1.0

0

NUMBER OF ACRES PROTECTED

2015 2016 2017 2018

25,000 25,568

20,000 19,823

2038GOAL

20,000

26,000

24,000

22,000

20,000

18,000

ON-ROAD FLEET EMISSIONS REDUCTIONS (percent reduction in MTCO2e emissions from a 2010 baseline)

2015 2016 2017 2018

22% 24% 27% 30%

2038GOAL

45%50

40

30

20

10

0

NUMBER OF WILDLIFEHABITAT PROGRAMS

2015 2016 2017 2018

110

9590

83

2038GOAL

90

120

110

100

90

80

70

2019 SUSTAINABILITY REPORT UPDATE › GOALS


Sustainability Key Performance IndicatorsGHG EMISSIONS ASSOCIATED WITH OPERATIONS1

AVOIDED GHG EMISSIONS5

WASTE-BASED ENERGY BENEFITS (EQUIVALENTS)8

RENEWABLE ENERGY GENERATION(MMTCO2e)

2014 2015 2016 2018

4.588

2.531 2.252 2.560

2017

2.421

5.0

4.0

3.0

2.0

1.0

0

PROCESS2

(MMTCO2e)

15.0

14.5

14.0

13.5

13.0

12.5

13.44

14.33

13.60

14.58

13.68

2014 2015 2016 20182017

TONS OF COAL EQUIVALENT

6.0

5.0

4.0

3.0

2.0

1.0

5.973

2.513

2.540 2.5902.480

2014 2015 2016 20182017

RECYCLING OF MATERIALS6

(MMTCO2e)

2014 2015 2016 2018

34.61 32.48 32.57 31.32

2017

32.5935.030.025.020.015.010.05.00.0

WASTE-BASED ENERGYPRODUCTION(million households)

2014 2015 2016 2018

1.01

0.47 0.47 0.48

2017

0.46

1.5

1.2

0.9

0.6

0.3

0

TRANSPORTATION3

(MMTCO2e)

1.75

1.70

1.65

1.60

1.55

1.50

1.738

1.7331.696

1.585

1.597

2014 2015 2016 20182017

CARBON PERMANENTLY SEQUESTERED7

(MMTCO2e)

2014 2015 2016 2018

16.8417.68

18.54

20.04

2017

19.4820.0

19.0

18.0

17.0

16.0

15.0

ENERGY USE4

(MMTCO2e)

0.7

0.6

0.5

0.4

0.3

0.2

0.436

0.439

0.586

0.349

0.656

2014 2015 2016 20182017

2019 SUSTAINABILITY REPORT UPDATE › KPIs


Sustainability Key Performance Indicators CONTINUED

2016 and 2017 adjusted to exclude “Other Vehicle Initiated Impact” incidents.

TOTAL RECORDABLE INJURY RATE(incidents per 100 employees)

2014 2015 2016 2017

3.2

3.0 3.0

2.8

2018

2.9

3.3

3.1

2.9

2.5

2.3

CHARITABLE GIVING(in millions)

2014 2015 2016 2017

$13.50$12.00

$13.67

$17.16

2018

$14.93

$18

$16

$14

$12

$10

VEHICLE ACCIDENT RECORDABLE RATE(driver hours without a vehicle accident, in thousands)

2014 2015 2016 2017

13.812.5

18.519.4

2018

19.720

18

16

14

12

10

RESOURCE SAVINGS ACHIEVED THROUGH RECYCLING

SAFETY PERFORMANCE

PHILANTHROPY

HOUSEHOLD ENERGYEQUIVALENT(in millions)

2.0

1.5

1.0

0.5

0

1.9 1.8 1.7 1.61.6

2014 2015 2016 20182017

CARS OFF ROAD(in millions)

7.5

7.0

6.5

6.0

5.5

7.3

6.8 6.9 6.96.9

2014 2015 2016 20182017



Key Performance Indicator Footnotes1 Since 2013, we have used the modified 100-year global warming potentials (GWPs) promulgated by the U.S. EPA. Pertinent to our carbon

footprint, our Scope 1 and 3 emissions calculations use the Intergovernmental Panel on Climate Change (IPCC) Fourth Assessment Report (FAR) GWP, and our Scope 2 emissions from purchased electricity use the IPCC Second Assessment Report (SAR) GWP.

2 Process emissions come from our landfills. The amount of landfill gas that is collected can be measured, the amount of landfill gas generated, and the amount emitted to the atmosphere as fugitive emissions must be estimated using prescribed calculation methodologies. The applicable methodologies are the Solid Waste Industry for Climate Solutions (SWICS) Protocol and the U.S. EPA Greenhouse Gas Reporting Program (GHGRP) rules. Our landfill footprint includes estimated emissions from both active and closed facilities.

3 Our methodology for calculating fleet efficiency conform to U.S. EPA’s SmartWay Truck Tool. SmartWay calculations use records compiled for tax credit and fee purposes. The tax documentation reflects fuel purchased in a year, including some insignificant amounts of fuel stored rather than used in a given year.

Note that our transportation emissions reported here include those from both our collection fleet and our noncollection “yellow iron” (i.e., off-road equipment such as forklifts and excavators) used on site. A small amount of fuel in this category is used for nontransportation purposes (e.g., running emergency generators or barbeque grills on site), but we do not subtract these from our transportation totals.

4 WM uses a Utility Bill Management (UBM) system to collect invoices and report natural gas usage. Each year we review our UBM system processes to improve on data collection and transparency, and our most recent review discovered that prior to 2018 reporting, the UBM system was grouping mobile emissions from compressed natural gas (389,988 MtCO2e in 2017) with stationary emissions from natural gas used for heating in our facilities. This has been corrected (to 44,137 MTCO2e in 2017) and our explanation of emissions changes here is based on corrected figures.

5 We are reporting these data to inform our customers and the public about the potential GHG reduction benefits associated with carbon storage in landfills, our renewable energy production and the value of the recyclable materials we collect and process. We are not presuming to characterize how emerging regulatory programs will allocate credit for these avoided emissions, so we do not claim these GHG reduction benefits as our own nor attempt to deduct these reductions from our carbon footprint.

6 In our calculations, we assume that, by recycling and composting, we divert materials from our modern WM landfills with landfill gas-to-energy capacity. If instead our recycling and composting were to divert materials from the “national average landfill” from the EPA WARM model, the emissions reductions achieved by recycling and composting would 36,091,771 MTCO2e in 2017. Note also that the increase in emissions reductions realized by recycling does not correspond arithmetically to the increase in total tons recycled. That is because, for example, paper recycling (80% of all recyclables) achieves very high emissions reductions, while the emissions reduction potential associated with glass recycling (20% of recyclables) is nominal on a per ton basis.

7 For a discussion of the protocols that govern this calculation of carbon storage or sequestration, see page 137 in the Appendix to the 2018 Sustainability Report.

8 Tons of coal equivalent is calculated based on the equivalent number of households that could be powered by waste-based energy production. Note that standard industry assumptions about household energy use differ for the waste-to-energy and landfill gas-to-energy sectors: Standard waste-to-energy reporting is 1,000 households per installed megawatt, while the household conversion for landfill gas-to-energy is based upon U.S. Energy Information Administration data that is updated yearly. Our calculation does not include wind or solar energy because we don’t own the energy.



http://sustainability.wm.com/downloads/appendix.php


RECYCLING PERFORMANCE

WHAT WE RECYCLED(in tons)

WHY WE RECYCLED WHERE WE RECYCLED

Waste Management managed over 15 million tons of material for beneficial use in 2018, broken down as follows:

PAPER

8,635,161

PLASTIC

349,499

MIXED ORGANICS

3,591,346

C&D / WOOD

202,329

FLY ASH

1,168,061

E-WASTE / LAMPS

19,404

GLASS

720,594METAL

475,278

Total Recycled Materials

MILLION TONS15.16

› To save 196.2 million mature trees

› To fulfill the annual power needs of 1.48 million homes

› To avoid 29.4 million metric tons of GHG emissions

› To supply enough fresh water for 20.6 million people for a month

› To meet the annual municipal waste needs of 26.5 million people

› To save 46.3 billion gallons of water

› To conserve 15.9 billion kWh of electricity

› To preserve enough timber resources to produce 3.3 trillion sheets of printing and copy paper

› To save 23.2 million cubic yards of landfill space

Material Recovery Facilities 46 Single Stream 29 Commercial 16 Other 11 Construction and Demolition 2 Dual Stream

2019 SUSTAINABILITY REPORT UPDATE › RECYCLING PERFORMANCE


Our performance is a strong platform from which to spend resources to make long-term advancement on recycling technology and equipment, fleet

efficiency and emissions reduction, and investment in our employees.

Revenues were nearly $15 billion.

REVENUE(in billions)

2017 2018

$14.5 $14.9$15

$10

$5

$0

Adjusted income from operations grew more than 4 percent.

ADJUSTED INCOME FROM OPERATIONS1

(in billions)

2017 2018

$2.63$2.74$2.8

$2.6

$2.4

$2.2

$2.0

Adjusted operating margin increased 20 basis points.2

ADJUSTED OPERATINGMARGIN1

2017 2018

18.2%18.4%18.5%

18.0%

17.5%

17.0%

16.5%

Adjusted operating EBITDA grew by more than 5 percent.Diluted earnings per share increased more than 30 percent.

Free cash flow increased more than $300 million.

ADJUSTED EPS1

2017 2018

$3.22

$4.20$4.5

$3.5

$2.5

$1.5

$0.5

FREE CASH FLOW1

(in billions)

2017 2018

$1.77

$2.08$2.1

$2.0

$1.9

$1.8

$1.7

ADJUSTED OPERATINGEBITDA1,2

(in billions)

2017 2018

$4.0

$4.2$4.5

$4.0

$3.5

$3.0

ECONOMIC IMPACT


We returned more than $1 billion to shareholders through share repurchases.

1 Non-GAAP measures. Please see page 137 in the Appendix to the 2018 Sustainability Report for additional information and a link to reconciliations of these measures.2 A basis point is one-hundredth of 1 percent.3 Operating EBITDA is defined as income from operations before depreciation and amortization.

Adjusted operating EBITDA margin increased 60 basis points.2

Cash dividends paid to shareholders were up about 7 percent.

REAL ESTATE TAXES PAID (in millions)

2017U.S.

2017Canada

2018U.S.

$58.0

$5.6

$63.7

2018Canada

$5.8

$70

$50

$30

$10

$0

INCOME TAXES PAID (in millions)

2017U.S.

2017Canada

2018U.S.

$524.3

$38.1

$307.5

2018Canada

$41.3

$800

$600

$400

$200

$0

ADJUSTED OPERATINGEBITDA MARGIN1,2

2017 2018

27.7%

28.3%

28.0%

27.5%

27.0%

26.5%

26.0%

CASH DIVIDENDS(in millions)

2017 2018

$750

$802$800

$780

$760

$740

$720

$700

PERSONAL PROPERTY TAXES PAID(in millions, U.S. Only)

2017 2018

$22.1 $23.3$25

$20

$15

$10

$5

$0

SHARE REPURCHASES(in millions)

2017 2018

$750

$1,008$1,000

$900

$800

$700

$600

$500

2019 SUSTAINABILITY REPORT UPDATE › ECONOMIC IMPACT



CORPORATE AWARDS

› World’s Most Admired Companies Fortune Magazine, 2019

› Sector Leader Dow Jones Sustainability Index, 2018-2019

› 100 Best Corporate Citizens Corporate Social Responsibility Magazine, 2015-2019

› Candidate Experience Award Winner — North America Talent Board, 2018-2019

› Best Company to Sell For Selling Power Magazine, 2015-2019

ENVIRONMENTAL, SOCIAL & GOVERNANCE PERFORMANCE

› 2018 Dow Jones Sustainability Index RobecoSAM, 13 of the past 16 years

› CDP Recognition Lists CDP, Climate Leadership Index 2004-2015, Climate A-List 2016-2018

› FTSE4Good Index Participant FTSE Russell, 2011-2019

› ISS Quality Service Score–Environmental & Social ISS, 2018 (1), Q12019 (1)

› Management Top 250 Company Wall Street Journal, 2018

› The Weight of America’s Boards James Drury Partners, 2018

AWARDS & RECOGNITION


DIVERSITY & INCLUSION

SUPPLY CHAIN

EVENTS

› Top Employers Professional Woman’s Magazine, 2017-2019

› 20% or More Corporate Seats Held by Women 2020 Women on Boards, 2019

› Best Companies to Work for Millennials (Top 100) Women’s Choice, 2018-2019

› Best Place to Work for LGBTQ Equality Human Rights Campaign — Corporate Equality Index Rating, 2010-2019, 90% or higher

› Best of the Best Employer HISPANIC Network Magazine, 2019

› Best of the Best Employer Black EOE Journal, 2019

› Top LGBTQ Friendly Company Black EOE Journal, 2019

› Top Disability-Friendly Company DIVERSEability Magazine, 2018

› Military Friendly Diversity Program G.I. Jobs/Vetrepreneur Magazine, 2018

› Top 100 Military Friendly Employer G.I. Jobs/Vetrepreneur Magazine, 2010-2020

› “Best for Vets” Employer Military Times, 2010-2019

› Best of the Best, Top Veteran-Friendly Company U.S. Veteran’s Magazine, 2012-2019

› Coach of the Year — Supplier Award LytxDriveCam, 2018

› CDP Supplier Engagement CDP, 2016 (B), 2017 (A-), 2018 (A)

› 2nd Best Driver of the Year — Supplier Award LytxDriveCam, 2018

› Certified “Bronze” Supplier Ecovadis, 2018

› PGA Tour Tournament of the Year PGA Tour, 2018

› Water Stewardship Influencer Award Sports & Sustainability Symposium, 2019

2019 SUSTAINABILITY REPORT UPDATE › AWARDS & RECOGNITION


To read our full report, please visit sustainability.wm.com.

Recycling is a good thing. Please recycle any printed copies of this report.

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