DRIVING CHANGE 2019 Sustainability Report Update Summary 2019 SUSTAINABILITY REPORT UPDATE › CEO MESSAGE

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.

https://sustainability.wm.com 1 2019 SUSTAINABILITY REPORT UPDATE › CEO MESSAGE

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.

Over the past two years, the Never a company to shy away from challenging topics, Waste Management level of awareness around has jumped in to engage in these important issues. We are participating in the international dialogue around marine debris. We have made sustainability issues commitments to recycle plastic domestically, and we are supporting the has increased. 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

https://sustainability.wm.com 2 2019 SUSTAINABILITY REPORT UPDATE › AT-A-GLANCE

WASTE MANAGEMENT At-A-Glance (as of and for the year ended December 31, 2018) Waste Management, Inc. (NYSE: WM), based in Houston, Texas, is the leading provider of comprehensive waste management environmental services in North America.

$14.9M 7,944 total donated in alternative fuel 132 43.7K 314 charitable giving vehicles natural gas employees transfer $1.9M fueling stations facilities in-kind services 130 20M landfill entities gas-to-electricity served facilities GIVING ENERGY OPERATIONS*

wildlife habitat pollinator habitat, species acres of 83 programs 63 programs 255 and education 19.8K certified programs habitats ‘on-the-ground’

CONSERVATION

RECYCLING FINANCIALS 2 4 dual stream 11 CORe® recycling construction facilities facilities 46 single-stream $1.8B $3.6B $1.7B and demolition recycling facilities returned to cash from capital recycling facilities shareholders operations expenditures 16 other $14.9B Total Revenue

LANDFILLS 29 commercial 247 5 facilities 40 active solid active hazardous composting/chipping/ waste landfills waste landfills grinding facilities

* 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.

https://sustainability.wm.com 3 2019 SUSTAINABILITY REPORT UPDATE › GOALS

Waste Management Sustainability Goals — 2010-2038

RECYCLABLES MANAGED ONROAD FLEET (in million tons) EMISSIONS REDUCTIONS (percent reduction in MTCO2e emissions from a 2010 baseline) 17.3 18.0 50 45% 16.0 15.3 15.2 40 14.0 14.7 14.0 30% 30 27% 12.0 22% 24% 20 10.0 8.0 8.0 10 6.0 0 2007 2015 2016 2017 2018 2038 2015 2016 2017 2018 2038 GOAL GOAL

WASTEBASED ENERGY PRODUCTION NUMBER OF WILDLIFE (MTCO2e) HABITAT PROGRAMS

3.0 120 2.6 2.6 2.5 2.5 2.4 110 110 2.0 100 95 90 90 90 1.0 83 80 0 70 2015 2016 2017 2018 2038 2015 2016 2017 2018 2038 GOAL GOAL

NUMBER OF ACRES PROTECTED

26,000 25,568 25,000 24,000

22,000 20,000 20,000 20,000 19,823

18,000 2015 2016 2017 2018 2038 GOAL

https://sustainability.wm.com 4 2019 SUSTAINABILITY REPORT UPDATE › KPIs

Sustainability Key Performance Indicators

GHG EMISSIONS ASSOCIATED WITH OPERATIONS1

PROCESS2 TRANSPORTATION3 ENERGY USE4 (MMTCO2e) (MMTCO2e) (MMTCO2e)

1.738 0.656 15.0 14.58 1.75 0.7 14.33 1.696 0.586 14.5 1.70 1.733 0.6 14.0 1.65 0.5 0.436 1.585 13.5 1.60 0.4 13.60 13.68 0.439 13.44 13.0 1.55 1.597 0.3 0.349 12.5 1.50 0.2 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

AVOIDED GHG EMISSIONS5

RENEWABLE ENERGY RECYCLING CARBON PERMANENTLY GENERATION OF MATERIALS6 SEQUESTERED7 (MMTCO2e) (MMTCO2e) (MMTCO2e)

20.04 5.0 35.0 34.61 20.0 4.588 32.48 32.57 32.59 19.48 30.0 31.32 4.0 19.0 25.0 18.54 3.0 2.531 2.560 20.0 18.0 17.68 2.252 2.421 2.0 15.0 17.0 16.84 10.0 1.0 16.0 5.0 0 0.0 15.0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

WASTE-BASED ENERGY BENEFITS (EQUIVALENTS)8

TONS OF COAL WASTEBASED ENERGY EQUIVALENT PRODUCTION (million households) 5.973 6.0 1.5 5.0 1.2 1.01 4.0 0.9 2.540 2.480 2.590 3.0 0.6 0.47 0.47 0.46 0.48 2.0 2.513 0.3 1.0 0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

https://sustainability.wm.com 5 2019 SUSTAINABILITY REPORT UPDATE › KPIs

Sustainability Key Performance Indicators CONTINUED

RESOURCE SAVINGS ACHIEVED THROUGH RECYCLING

HOUSEHOLD ENERGY CARS OFF ROAD EQUIVALENT (in millions) (in millions)

7.3 2.0 7.5 1.9 1.8 1.5 1.7 7.0 1.6 1.6 6.9 6.9 6.9 1.0 6.5 6.8

0.5 6.0

0 5.5 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

SAFETY PERFORMANCE

TOTAL RECORDABLE VEHICLE ACCIDENT RECORDABLE RATE INJURY RATE (driver hours without a vehicle accident, (incidents per 100 employees) in thousands)

3.3 20 19.4 19.7 3.2 18.5 3.1 3.0 3.0 18 2.9 2.8 16 2.9 14 13.8 12.5 2.5 12 2.3 10 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

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

PHILANTHROPY

CHARITABLE GIVING (in millions)

$18 $17.16 $16 $14.93 $14 $13.50 $13.67 $12.00 $12

$10 2014 2015 2016 2017 2018

https://sustainability.wm.com 6 2019 SUSTAINABILITY REPORT UPDATE › KPIs

Key Performance Indicator Footnotes

1 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.

https://sustainability.wm.com 7 2019 SUSTAINABILITY REPORT UPDATE › RECYCLING PERFORMANCE

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

WHAT WE RECYCLED (in tons)

PAPER MIXED ORGANICS FLY ASH GLASS METAL 8,635,161 3,591,346 1,168,061 720,594 475,278

MILLION 15.16 TONS PLASTIC C&D / WOOD E-WASTE / LAMPS Total Recycled 349,499 202,329 19,404 Materials

WHY WE RECYCLED WHERE WE RECYCLED

›› 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 Material Recovery Facilities ›› To conserve 15.9 billion kWh of electricity 46 Single Stream ›› To preserve enough timber resources to produce 29 Commercial 3.3 trillion sheets of printing and copy paper 16 Other ›› To save 23.2 million cubic yards of landfill space 11 Construction and Demolition 2 Dual Stream

https://sustainability.wm.com 8 ECONOMIC IMPACT

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.

REVENUE ADJUSTED INCOME ADJUSTED OPERATING (in billions) FROM OPERATIONS1 MARGIN1 (in billions)

$14.9 $15 $14.5 $2.8 $2.74 18.5% 18.4% 18.2% $2.63 $2.6 18.0% $10 $2.4 17.5% $5 $2.2 17.0%

$0 $2.0 16.5% 2017 2018 2017 2018 2017 2018

Revenues were nearly $15 billion. Adjusted income from operations grew more Adjusted operating margin increased than 4 percent. 20 basis points.2

ADJUSTED EPS1 FREE CASH FLOW1 ADJUSTED OPERATING (in billions) EBITDA1,2 (in billions)

$4.5 $4.20 $2.1 $2.08 $4.5 $4.2

$3.5 $3.22 $2.0 $4.0 $4.0 $2.5 $1.9 $3.5 $1.5 $1.8 $1.77

$0.5 $1.7 $3.0 2017 2018 2017 2018 2017 2018

Diluted earnings per share increased more than Free cash flow increased more than $300 million. Adjusted operating EBITDA grew by more than 5 percent. 30 percent.

https://sustainability.wm.com 9 2019 SUSTAINABILITY REPORT UPDATE › ECONOMIC IMPACT

ADJUSTED OPERATING CASH DIVIDENDS SHARE REPURCHASES EBITDA MARGIN1,2 (in millions) (in millions)

28.3% $802 $1,008 28.0% $800 $1,000 27.7% 27.5% $780 $900 $760 $750 $800 27.0% $750 $740 $700 26.5% $720 $600 26.0% $700 $500 2017 2018 2017 2018 2017 2018

Adjusted operating EBITDA margin increased Cash dividends paid to shareholders were up We returned more than $1 billion to shareholders 60 basis points.2 about 7 percent. through share repurchases.

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

$800 $70 $63.7 $25 $23.3 $524.3 $58.0 $22.1 $600 $50 $20 $307.5 $15 $400 $30 $10 $200 $10 $5 $38.1 $41.3 $5.6 $5.8 $0 $0 $0 2017 2017 2018 2018 2017 2017 2018 2018 2017 2018 U.S. Canada U.S. Canada U.S. Canada U.S. Canada

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.

https://sustainability.wm.com 10 AWARDS & RECOGNITION

CORPORATE ›› World’s Most Admired Companies ›› Candidate Experience Award Fortune Magazine, 2019 Winner — North America AWARDS Talent Board, 2018-2019 ›› Sector Leader Dow Jones Sustainability Index, ›› Best Company to Sell For 2018-2019 Selling Power Magazine, 2015-2019

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

ENVIRONMENTAL, ›› 2018 Dow Jones ›› ISS Quality Service Score– Sustainability Index Environmental & Social SOCIAL & RobecoSAM, 13 of the ISS, 2018 (1), Q12019 (1) GOVERNANCE past 16 years ›› Management Top 250 Company PERFORMANCE ›› CDP Recognition Lists Wall Street Journal, 2018 CDP, Climate Leadership Index › 2004-2015, Climate A-List › The Weight of America’s Boards 2016-2018 James Drury Partners, 2018

›› FTSE4Good Index Participant FTSE Russell, 2011-2019

https://sustainability.wm.com 11 2019 SUSTAINABILITY REPORT UPDATE › AWARDS & RECOGNITION

DIVERSITY & ›› Top Employers ›› Top LGBTQ Friendly Company Professional Woman’s Magazine, Black EOE Journal, 2019 INCLUSION 2017-2019 ›› Top Disability-Friendly Company ›› 20% or More Corporate Seats Held DIVERSEability Magazine, 2018 by Women › 2020 Women on Boards, 2019 › Military Friendly Diversity Program ›› Best Companies to Work G.I. Jobs/Vetrepreneur Magazine, for Millennials (Top 100) 2018 Women’s Choice, 2018-2019 ›› Top 100 Military Friendly Employer ›› Best Place to Work G.I. Jobs/Vetrepreneur Magazine, for LGBTQ Equality 2010-2020 Human Rights Campaign — › Corporate Equality Index Rating, › “Best for Vets” Employer Military Times 2010-2019, 90% or higher , 2010-2019 › ›› Best of the Best Employer › Best of the Best, Top HISPANIC Network Magazine, 2019 Veteran-Friendly Company U.S. Veteran’s Magazine, ›› Best of the Best Employer 2012-2019 Black EOE Journal, 2019

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

›› CDP Supplier Engagement ›› Certified “Bronze” Supplier CDP, 2016 (B), 2017 (A-), Ecovadis, 2018 2018 (A)

EVENTS ›› PGA Tour Tournament of the Year ›› Water Stewardship PGA Tour, 2018 Influencer Award Sports & Sustainability Symposium, 2019

https://sustainability.wm.com 12 To read our full report, please visit sustainability.wm.com. Recycling is a good thing. Please recycle any printed copies of this report.