Chemical Leasing Toolkit

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Extended producer responsibility

The extended producer responsibility referred to in the definition of Chemical Leasing results from the ownership of the chemical not being transferred from the supplier to its customer. Chemical Leasing shifts away from high sales volumes of chemicals towards an integrated approach and extended producer responsibility throughout the entire chemical life cycle. Increasing the efficient use of chemicals while reducing the risks, as stated in the definition, are the targets of any process optimisation under Chemical Leasing. To optimize a production process involving the application of a chemical, the chemical and the equipment used must fit together perfectly. For this purpose the chemicals applied can be replaced by chemicals more adapted to the equipment and process in question.

Examples

In Chemical Leasing projects in cleaning operations, for example, ownership of the cleansers, lubricants or detergents typically remains with the chemical providers, who therefore have an extended producer responsibility for application of the chemicals as well as for disposal or recycling.

Challenges

Customised solutions for sound chemical management through Chemical Leasing are best developed by bringing together the know-how of the chemical producer, the user and the equipment manufacturer. A clear definition of roles and tasks of each of the partners, as well as a robust legal framework, is needed to design effective Chemical Leasing contracts. Different industry sectors and actors will have different concerns, and will be more or less responsive depending on how well the Chemical Leasing concept addresses their financial and operational situation.

Ways to overcome barriers

Ways to overcome barriers in this area can include:

  • conducting cost benefit analyses and scenario/ potential analyses in order to fairly evaluate traditional sales concepts versus Chemical Leasing concept;
  • developing detailed business and operational plans, financing schemes and information systems for pilot projects, address issues such as revenue sharing from the profits generated by Chemical Leasing implementation transparently;
  • supporting industry leadership and political support; indispensable in convincing the industry to join Chemical Leasing-driven initiatives.