Chemical Leasing - making the business case for sustainable chemistry

It is a problem of profit: Conventional management approaches for the business with chemicals are based on turnover. Chemical Leasing is a performance-based business model based on a unique approach that turns the business model upside down: profit doesn't depend on more volume, but less. At the heart of the model is the idea that economic success no longer depends on the volume of chemicals sold, but on the service that is linked with the chemicals. It puts SDG 9 into action!

At a Glance

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About This Innovation

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Chemical Leasing explained on Youtube

Innovation Stats

Innovation Type: 
What phase of development is your innovation currently in?: 
Where did you create your innovation?: 
In what Region do you expect your Innovation to be utilized?: 
Global
Where have you implemented your innovation?: 

How does your innovation work?

At the heart of the model is the idea that economic success no longer depends on the volume of chemicals sold, but on the service that is linked with the chemicals. Chemical consumption becomes a cost rather than a revenue factor. The business partners and the environment shall benefit from the co-creation of jointly developed resource-efficient and innovative solutions and fair profit-sharing. 
At the heart of the model is the idea that economic success no longer depends on the volume of chemicals sold, but on the service that is linked with the chemicals. Chemical consumption becomes a cost rather than a revenue factor. The business partners and the environment shall benefit from the co-creation of jointly developed resource-efficient and innovative solutions and fair profit-sharing. 

Do you have current users or testers?

Full information here: http://chemicalleasing.org/sites/default/files/20160310_10%20Years%20Che...

What is your innovation's value proposition?

Making the business case for Sustainable Chemistry, Green Chemistry and the Circular Economy.

Target results and impact

At least 50 new business cases that are recognised to fall under Chemical Leasing by 2020

At least 5 new policy stakeholders signing the Joint Declaration of Intent on Chemical Leasing by 2020

At least +50 leaders involved in Chemical Leasing think tank activities by 2020

What Evidence do you have that your Innovation works?

More than 100 companies have already implemented Chemical Leasing business models around the globe. Case studies and pilots have been conducted in more than a dozen countries from five continents. Global studies on the application of Chemical Leasing in Cleaning Operations have been conducted. Applicability proven in many industries and sectors including food and beverages, automotives, hospitality, metalworking, household appliances, wastewater treatment, painting etc

Provide a status update for your Innovation.

The ultimate goals is to achieve Chemical Leasing up-scaling, its mainstreaming and higher levels of application of resource-efficient, closing-the-loop and performance-based business models across industries at the global level.

What is your strategy for expanding use of your innovation?

The past approach of testing Chemical Leasing jointly with the partners from UNIDO/ UNEP’s network of National Cleaner Production Centres has proven to be successful; however, a new dimension of success is needed, mainly with regard to achieving mainstreaming and up-scaling of performance-based business models. That is why in December 2016 and January 2017, expert group meetings were held to strengthen the work of UNIDO’s Chemical Leasing Programme with the development of a comprehensive and updated approach on Chemical Leasing - Chemical Leasing 4.0. The enhanced approach now comprises 4 modules:

Chemical Leasing basics
Chemical Leasing for waste management
Chemical Leasing – the non-tox solution
Chemical Leasing for sustainable supply chain management

Of these modules, only Module 1 is obligatory for any Chemical Leasing application and it is therefore considered the overarching or umbrella module (or core module). Modules 2 to 4 are optional components of a Chemical Leasing application and involve different additional aspects besides the core features. 

The new approach provides a unique opportunity to build a building bock and business case for advancing sustainable chemistry, green chemistry and the circular economy concepts. Promoted jointly with key stakeholders, it has all the ingredients to impact sustainability functions at the business level through capacity-building and broad dissemination activities on innovative business model solutions.

Next Steps

Build a platform for dialogue and knowledge sharing (International Advocacy: “Chemical Leasing think tank”)

Undertake awareness raising actions to promote innovative and performance based business models across industries and countries

Chemical Leasing 4.0 Project Portfolio developed in line with the Joint Declaration of Intent on Chemical Leasing

How can Exchange Members help you?

Help with the marketing and socialization of the ExchangeParticipate with research or a studyShare your thoughtsTest our innovation and provide feedbackBecome a partner

Do you have a website for the innovation?

http://chemicalleasing.org/

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