Table of Contents
The environmental services sector is a multi-billion-dollar industry that includes companies that collect and dispose of hazardous and nonhazardous types of waste and pollutants. Waste can include toxic waste in soil and water, as well as medical waste, trash, and sewage.
Companies in the environmental services industry include waste treatment plants, landfills, sewage systems, incinerator operators, testing and analysis services, and companies that provide technologies to deal with radioactive waste and other specialized areas.
The environmental services sector may offer a wide array of potential investment opportunities, thanks to an active regulatory climate as well as growing corporate and consumer commitment to sustainability goals in the U.S. and abroad.
Key Points
• Environmental services is a multi-billion-dollar industry, and it includes companies that collect and dispose of hazardous and nonhazardous waste.
• Waste can include consumer refuse, toxic waste in soil and water, medical waste, and sewage.
• Environmental services also encompass a number of subsectors that range from testing to engineering, consulting, development, and more.
• Owing to the rising concern about environmental impacts, there is a robust regulatory climate that has helped shape and spur the growth of this sector.
• Given that continued population growth and urbanization are adding to the increase in waste and pollution, environmental services may see commensurate demand over time.
What Is the Environmental Services Sector?
Environmental services generally encompass infrastructure-based organizations and public utilities, such as sanitation and sewage processing, as well as water and wastewater treatment and recycling.
Environmental services can also include noninfrastructure services that deal with air, water, ground, and noise pollution, along with contaminated site remediation.
The removal and treatment of medical and hospital waste is another important environmental services function.
Start investing with up to $3,000 in stock.
Open and fund a SoFi Active Invest account and get up to $3,000 in stock.*
đź’ˇ Quick Tip: Environmental services stocks may be influenced factors such as regulatory shifts and economic cycles. Before investing online, investors may evaluate how industry-specific factors align with their risk tolerance.
Subsectors of Environmental Services
While environmental services are often couched as waste management, it’s important to remember that environmental services encompass a number of subsectors that range from testing to engineering, consulting, development, and more. These companies prevent and reduce pollution of the air, land, cities, and waterways.
Environmental services subsectors include:
• Testing and analysis: Testing for pollutants and chemical contaminants is an important part of regulatory compliance as well as ensuring baseline environmental protections.
• Environmental engineering and project management services: This supports sustainable infrastructure development, public services, and sustainable project management.
• Environmental assessment and permitting: These companies ensure legally compliant project management and infrastructure development.
• Environmental services processing: This includes facilities that handle recycling, smelting, incineration, and more.
• Environmental consulting: Companies help organizations meet local and governmental sustainability standards or improve their visibility as an environmental steward.
Recommended: Beginner’s Guide to Sustainable Investing
6 Biggest Companies Within Environmental Services
Environmental services is a massive global sector. The waste management and remediation subsector alone had a market size of $19.26 billion in 2025. It is projected to grow at a compound annual growth rate (CAGR) of about 7%, reaching some $1,140 billion by 2030.
Some of the biggest companies by revenue, according to a 2025 report from investment firm Hoolihan Lokey, include:
| Company | Ticker | Market capitalization (in billions) |
|---|---|---|
| Waste Management, Inc. | WM | $93.09 |
| Republic Services, Inc. | RSG | $75.62 |
| Waste Connections, Inc. | WCN | $50.38 |
| GFL Environmental, Inc. | GFL | $17.53 |
| Clean Harbors, Inc. | CLH | $10.62 |
| Casella Waste Systems | CWST | $7.07 |
Source: Houlihan Lokey, Environmental Services Market Update, March 2025
Investing in Environmental Services Stocks
Several factors are contributing to the growth of the environmental services sector. These include population growth, urbanization, industrialization, increased government regulations, and rising concern among consumers and investors about environmental, social, and governmental (ESG) factors.
Growth of Waste and Pollution
According to the U.S. Environmental Protection Agency’s most recent data, municipal solid waste (MSW) amounted to 292.4 million tons in 2018. MSW refers to consumer waste or garbage (i.e., everything from food waste to packaging to durable goods refuse such as furniture). MSW does not include industrial or hazardous waste. Of that 292.4 million tons, 69 million were recycled, and 25 million were composted.
On the whole, the world population is getting richer, and with that comes more consumption and more waste creation. Many people move into cities as income increases, resulting in the need for more urban waste management.
On the plus side, technology is improving within collection, recycling, and waste processing. More waste is being converted into energy, and advanced technology systems help with processing, remediation, and more.
Benefits of Investing in Environmental Services
There are several reasons why investing in environmental services and green stocks may offer investors certain opportunities. For instance:
• Environmental services are frequently needed, and demand is projected to increase.
• There is a growing body of governmental regulations in this sector that require companies to rely on a range of environmental services.
• Environmental and waste management technology (e.g., water treatment and air pollution abatement) is improving, and investments are being made in new systems.
• More product packaging is now recyclable.
• As more people move to cities, it is easier to collect their waste, and economies of scale become relevant.
Disadvantages of Investing in Environmental Services
However, there are some downsides and things to keep in mind when considering investing in environmental services stocks and ETFs. Similar to stocks in any sector, it’s important to do research and consider what might happen in the future. Some things to keep in mind are:
• Consumption and waste generation are closely tied to economic cycles. If there is a recession or economic downturn, people consume less, which can affect the revenue of waste management companies.
• Inflation and currency fluctuations can affect the waste management sector as well, especially in emerging markets.
• There are efforts being made by governments, non-governmental organizations (NGOs), and others to educate people and encourage them to consume less and waste less. While this is great news for the environment and global health, it may not be great news for waste management companies.
• Environmental services companies are increasingly involved in energy and materials sectors, making them vulnerable to fluctuations in commodities pricing and supply chain changes.
The Takeaway
Environmental services are an essential part of hazardous and nonhazardous waste management, processing, remediation, and more. And as consumption and urbanization increase, the sector is also projected to grow. Robust environmental services systems are crucial to sustainability efforts, and interested investors may find investment opportunities in the environmental services sector, but it’s equally important to weigh the risks in this field.
Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest®. You can trade stocks, ETFs, or options through self-directed investing with SoFi Securities, or simply automate your investments with a robo advisor from SoFi Wealth. You'll gain access to alternative investments and upcoming IPOs, and can plan for retirement with a tax-advantaged IRA. With SoFi, you can manage all your investments, all in one place.
Take a step toward reaching your financial goals with SoFi Invest.
FAQ
What are examples of environmental services?
Examples of environmental services include hazardous and nonhazardous waste collection and disposal, sewage treatment, recycling, landfill management, composting, toxic waste removal and remediation, and medical waste management. Environmental services can also include engineering and consulting for legal and regulatory compliance.
What’s the meaning of environmental services?
Environmental services are companies and organizations whose aim is to help corporations and municipalities manage the constant generation of waste products and pollutants that are a natural but potentially hazardous aspect of modern life. It broadly relates to the “E” in environmental, social, and governance (ESG) investing.
Why do we need environmental services?
As the world’s population grows and urban areas expand, there is a commensurate increase in environmental waste products and pollutants. Environmental services companies clean up, manage, and process waste and meet certain regulatory standards. This is essential to keep land, cities, air, and water clean and unpolluted.
Photo credit: iStock/onuma Inthapong
This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.
Options involve substantial risk of loss and the possibility an investor may lose the entire amount invested. Before starting options trading, investors should be familiar with the Characteristics and Risks of Standardized Options . TTax implications with options should be considered. Consult your tax advisor to understand any impacts to your taxes.
SOIN-Q126-134