Considerable economic as well as environmental benefits can be achieved when appropriate industrial waste management is implemented. The objective of this study was to find a method of organizing a waste management system and of obtaining an overview of the whole system. The method proposed emphasizes the optimization of waste management with regard to energy, economy and environmental impact in separate evaluations. The case study presented illustrates how the method was applied to the Stora Enso Hylte AB paper-mill in Sweden. The waste management systems studied were: (1) the existing system (used as a reference), (2) an energy-recovery system (in which the waste produced is used for energy production, as far as is possible), and (3) a material-recovery system (in which waste is recovered or re-used, as far as is possible). The second system was found to be preferable with regard to energy, economy and environmental impact, although the lowest carbon dioxide emissions was obtained with the first system. The method presented is also suitable as a basis for the development of more specific methodologies for the analysis of waste handling systems applicable to other branches of industry.