OPINION: We’ve built a system where ambition sits at the top – with government targets, corporate net zero commitments and sector-wide pledges – but delivery happens somewhere else. In the middle. And in the waste sector, that ‘middle’ is where this ambition will be achieved or stall.
The overlooked engine of progress
Medium-sized businesses – what we call the ‘missed middle’ – are not a niche concern. They make an oversized contribution to the UK economy. They are enablers of big business, anchor supply chains, employ millions, and translate strategy into reality. In waste, they are the family businesses, the regional operators, subcontractors, processors, logistics providers. If large waste companies and local authorities set the targets, and government sets the national ambitions, it is these businesses that make these achievable. And yet, the system is not built for them.
Too often, sustainability is seen as a burden – a reporting exercise, a cost centre, or a risk to manage – but for mid-sized waste businesses, sustainability is increasingly a commercial lever. Done well, it drives resilience – protecting against volatile input costs, regulatory shifts and client demands. It sharpens competitive advantage – particularly as larger contractors cascade requirements down their supply chains. It unlocks innovation – from reuse models to material recovery to new service offerings. And critically, it strengthens positioning in a market that is changing.
The waste sector’s carbon reality
The waste industry is a major contributor to the UK’s carbon footprint (estimated by the Climate Change Committee to account for 6% of all greenhouse gas emissions in 2018) – not just from landfill emissions but recycling and Energy from Waste, across collection, transport, processing and treatment. Decarbonisation here is not optional, it is central to meeting the UK’s net zero target. The major players recognise this, with ambitious targets and increasing scrutiny from investors, regulators and customers. The Environmental Services Association (ESA) itself has set a net zero ambition for the sector. But none of those targets can be delivered in isolation. They depend on the emissions, decisions and capabilities of the businesses sitting in the supply chain – many of which fall squarely into the missed middle. If those businesses stall, so do the targets above them.
A sector at a tipping point
Many mid-sized waste businesses, particularly long-established, family-owned firms, are facing a stark reality. They are being asked to respond to increasingly complex sustainability demands – carbon reporting, fleet transition, circular economy models, anti-modern slavery measures, social value metrics – without the resources, clarity or support to do so. For some, the response is to sell. We are seeing consolidation across the sector, businesses that cannot see a viable pathway to meet future expectations are exiting and taking their valuable knowledge with them. At the same time, new entrants are moving in. These are often more agile, more specialised, and built around circular models – reuse, repair, advanced sorting, material innovation. They are not weighed down by legacy systems and are capitalising on the opportunities that others cannot access but may not have the scale needed to meet demand.
What’s holding the middle back?
The barriers are not hard to identify – they’re systemic. Policy frameworks are often designed with large corporates in mind, assuming in-house expertise and dedicated sustainability teams. Guidance is fragmented, inconsistent and rarely tailored to operational realities. Whilst there’s some support for SMEs, there’s a void for those that grow beyond this cliff-edge. The business case is not always clear at leadership level – particularly where margins are tight and priorities compete. Capability is stretched, time is limited, investment is risky and perhaps most importantly, collaboration is weak. Supply chains are being asked to deliver change but not always supported to do so.
If the waste sector is serious about delivering net zero – and about capturing the wider economic and environmental opportunity – then the missed middle cannot remain an afterthought:
- These businesses need guidance that reflects their reality – practical, prioritised and commercially grounded with clearer pathways.
- Sustainability needs to move out of the compliance box and into core business strategy, requiring better articulation and visibility of the commercial case – risk, resilience, growth.
- And our industry need genuine collaboration – larger waste companies and local authorities need to recognise the different circumstances and challenges of the missed middle. And if they expect change across their supply chains, they need to help enable it – through clearer standards, shared approaches and, where needed, direct support.
Closing the gap
There is a risk that sustainability in the waste sector becomes something discussed and delivered by the largest players alone – but real impact will not come from a handful of organisations at the top. It will come from change that permeates through the entire system, not just where the money sits but into the mid-tier, and ultimately into the smallest operators. This is where scale lives. This is where emissions sit. And this is where progress either accelerates or stalls.
The missed middle is not a weakness in the system – it is the system. These businesses are agile, commercially aware and deeply embedded in their communities and supply chains. They are uniquely positioned to translate ambition into action, quickly and effectively – but our industry needs to come together, public and private sector, businesses of all sizes, industry bodies, media and event organisers – to enable them to do this. Right now, we are asking them to carry a disproportionate share of the burden without representation or the tools to succeed. And in a sector as critical as waste, that is not just inefficient, it is not sustainable.
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