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Commercial composting 101: A practical guide for businesses

March 3, 2025

Effective waste management is essential for sustainability and for Canadian businesses, composting provides a practical and impactful solution. Beyond simple waste disposal, composting significantly cuts costs, reduces greenhouse gas emissions, and elevates your company's sustainability profile, turning a cost center into a resource. With rising landfill fees and stricter environmental regulations, like Ontario's 2025 ban on organic waste in landfills and Quebec's composting mandate, adopting composting is increasingly critical. This practical composting guide will help you establish a program that delivers financial, environmental, and reputational returns.

Why composting matters for your business

Canadian businesses generate substantial amounts of organic waste every day—everything from kitchen scraps and leftover produce to yard trimmings and biodegradable packaging. Much of this material ends up in landfills, where it decomposes anaerobically and releases methane greenhouse gas 28 times more potent than CO₂ in trapping heat. This not only harms the environment but also impacts businesses' bottom lines through increased costs.

Composting offers a practical and cost-effective alternative: a controlled, natural process that turns this organic waste into valuable compost, reducing the need for landfill disposal. By adopting business composting, companies can directly address both the environmental and financial challenges of organic waste.

  • Cut costs: Composting can significantly reduce the waste hauling fees your business pays, potentially cutting disposal costs by 30-50% through effective waste diversion, especially if surcharges apply. Many businesses find that a significant portion of their "trash" is actually compostable, meaning they're overpaying for disposal.
  • Avoid penalties: Composting helps businesses avoid significant financial penalties associated with organic waste bans, such as Quebec and Ontario's 2025 mandates. Non-compliance can result in hefty fines, making composting a financially sound decision.
  • Improve environmental impact: Composting produces nutrient-rich compost (often called "black gold") that enhances soil quality, reduces the need for chemical fertilizers, and helps combat climate change.
  • Boost brand reputation: Composting enhances ESG (Environmental, Social, and Governance) metrics, which are increasingly important to investors and eco-conscious customers. 73% of consumers prefer sustainable brands (Nielsen).
  • Create a valuable resource: You can use the nutrient-rich compost to revitalize urban green spaces around your business or even sell it to local plant nurseries.

What makes composting work?

Composting requires four key ingredients:

  1. Greens (Nitrogen-rich materials): Food scraps, coffee grounds, fresh grass clippings.
  2. Browns (Carbon-rich materials): Dry leaves, cardboard, paper, wood chips.
  3. Water: Moisture to activate decomposition.
  4. Air: Oxygen for aerobic bacteria to thrive.

Maintaining the correct balance between these ingredients, ideally around a 2:1 ratio of browns to greens by volume, is crucial. This balance creates the ideal conditions for microorganisms to thrive and efficiently break down the organic waste into nutrient-rich compost.

Adjust the mix based on observation: a smelly pile usually means too much nitrogen (greens), while slow decomposition suggests too much carbon (browns).

Choosing the right composting system 

The best composting method depends on your waste volume, available space, and operational needs. There are three proven approaches to commercial composting:

On-site composting

Ideal for businesses like restaurants, cafés, hotels, and campuses that produce a significant amount of organic waste and have space available. On-site composting gives you full control over the process, reduces the need for waste hauling, and directly produces usable compost. For smaller businesses, countertop bins combined with reliable pickup or larger on-site bins can be effective. High-volume operations might invest in on-site digesters (which can process waste in as little as 24 hours) or outdoor composters. For events, portable 3-stream bins and mobile sorting stations are a great option for easy triage.

Municipal programs

Municipal composting programs provide a solid foundation, particularly for smaller businesses and offices. However, to truly maximize the environmental and financial benefits of composting, businesses may need to go beyond the basic services offered. This could involve supplemental composting equipment, more in-depth staff training, and a comprehensive waste audit to identify all potential sources of organic waste.

Private composting services

A hassle-free and scalable solution, particularly for high-volume waste generators and events. At Evirum, we handle collection and processing, offering compliance guarantees and allowing businesses to focus on their core operations.

Pro Tip: Begin with a waste audit to accurately assess your organic waste stream. This will help you determine the most suitable composting method and avoid overpaying for disposal.

What can you compost?

Going circular

The linear "take-make-dispose" model is outdated. Forward-thinking businesses are embracing the circular economy, with composting as a cornerstone. This guide has provided the blueprint for turning your organic waste into a valuable asset and contributing to a more sustainable future.

A transition is easier than you think: start with a waste audit, explore your options, and build a program that aligns with your vision. Ready to move from understanding why to implementing how? Our next post will provide a practical roadmap to launch and optimize your own composting program, transforming waste into opportunity.

Empower your team

Optimize your composting program

Having trouble getting your staff to sort materials properly? Evirum offers consulting and educational services to help you implement a successful composting program. Let us empower your team to make a difference.