Chemical Leasing: A Business Model to Drive Resource Efficiency in the Supply Chain
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Chemicals are indispensable in our daily life and most economic sectors depend on chemical supplies for the manufacturing of their goods. However, the use and production of chemicals is a resource intensive business that faces growing global demand. An efficient use of resources by the chemical industry and downstream chemical users can therefore significantly reduce the overall resource consumption in the economy and contribute to sustainable development. Thus, increasing the sustainable use of chemicals supports the achievement of international political objectives such as the Agenda 2030 Sustainable Development Goals.
In order to achieve the sustainability in the use of chemicals, innovative and service-oriented business models are needed that provide incentives for companies to reduce their chemical consumption. Chemical Leasing offers such an approach. In this business model, the functions performed by the chemical serve as the unit of payment and chemical suppliers and users work together to optimize chemical use in fulfilling the function. Due to the service-based approach, chemical consumption is a cost factor for the business partners, which they aim to minimize. This induces economic benefits that are shared among the business partners. Moreover, environmental and health benefits are generated since fewer chemicals are applied, stored, handled and produced, and fewer emissions are released into environmental compartments. In the upstream supply chain, reduced chemical demand results in tremendous savings of raw materials and energy for the production of the chemicals. Hence, large resource and cost saving potentials are seen with the application of Chemical Leasing in a variety of branches.
KeywordsChemical leasing Resource efficiency Innovative business model Sustainable chemistry Environmental and economic benefits Emission reduction Cost savings
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