Developing environmental, social and governance (ESG) strategies on evaluation of municipal waste disposal centers: A case of Mexico.

ABSTRACT

Waste disposal systems are crucial components of environmental management, and focusing on this sector can contribute to the development of various other sectors and improve social welfare. Urban waste is no longer solely an environmental issue; it now plays a significant role in the economy, energy, and value creation, with waste disposal centers (WDCs) being a key manifestation. The purpose of this study is to measure the performance of WDCs in the state of Nuevo León, Mexico, with the aim of developing environmental, social, and governance (ESG) strategies to strengthen and prepare the WDCs for the industrial developments in this state. By identifying environmental variables and undesirable factors, the efficiency and managerial capacity of 32 WDCs were assessed. The analysis revealed that 9 out of the 32 WDCs are technically efficient, while the remaining 23 require significant improvements. Using the Data Envelopment Analysis (DEA) technique, an average efficiency score of 0.91 was found, with a standard deviation of 0.08. The managerial capacity analysis indicated that the highest-ranked WDC achieved an efficiency score of 1, whereas the lowest-ranked WDC scored 0.67. Finally, an operational map of development strategies was developed using the Interpretive Structural Modeling (ISM) and Matrix Impact Cross-Reference Multiplication Applied to a Classification (MICMAC) approach. The results indicate that four phases of development should be followed for real development and maturity of development in these WDCs, including Groundwork, Structuring, Development and Growth, and Smart Maturity.