Waste characterization is the process of determining what is present in a given waste stream. It involves the sorting and measuring of waste to determine what types of waste are present, the quantity of each type of waste generated, and the quality of the waste. Waste characterization is the first and most important step in developing a waste management plan or utilizing a Waste Exchange.

In order to characterize the waste it must first be sorted. In most cases this is most easily accomplished when and where the waste in generated before it is mixed with other general waste. Care must be taken to ensure proper storage and handling of wastes to prevent leakage or spoiling.

The next step is to measure the wastes. Determining the weight or volume of waste generated is essential when using the Waste Exchange program since other companies will need to know how much of the material is available. Measuring the quantity of waste can also provide useful metrics to analyse waste management performance.

Finally, properties of the waste must be determined. Concentration, purity, unit size, and other properties may be important when dealing with the Waste Exchange.

Once waste characterization has been implemented as part of a waste management plan the company will have a good understanding of the waste generated. Using this knowledge they can develop methods of reducing their waste either through process changes, the Waste Exchange, or other options. Sorting the waste and having a detailed description of its properties will facilitate finding potential users of the waste through the Waste Exchange program.