The Importance of "Ecoleasing"
Environmental Leadership That Serves and Protects Your Business
We’re often asked what our name means and how it's related to equipment finance.
At Ecologic, we see a tremendous opportunity to serve and protect our clients and, in the process, make a significant contribution to the equipment leasing industry, to the communities where we operate, and to the health of the planet.
We believe that “ecoleasing” (sometimes called “servicizing”) will play an important role in the way companies do business.
What Is "Ecoleasing"?
Ecoleasing happens when manufacturers, resellers, or service providers sell a service instead of a product by essentially renting the use of that product to the customer through equipment financing.
What Are the Benefits?
The vendor is able to reduce the costs of providing the service by reducing the amount of materials, labor and energy required to deliver it. And the lessee saves money by paying for the service over time as they use it. This aligns the payment stream with how the lessee accrues the benefits – incrementally, over time, as they use it.
With ecoleasing, less equipment needs to be disposed of because leased products are being used more effectively and efficiently through reuse and recycling of components. And at the end of the useful life of the leased equipment, the vendor then takes responsibility for its reuse in building new equipment or environmentally sound disposal. When components or materials of old equipment are reused in building new equipment, manufacturers extract less from the earth, saving them money by lowering their operating costs. Some leading companies have redesigned their global business processes to take advantage of these opportunities and as a result have patented new technologies and processes creating barriers-to-entry to their competitors. In this way, Ecoleasing not only reduces our impact on the environment, it also drives the creation of intellectual property and market value – the keys to capitalism.
Ecologic tracks best practices related to "ecoleasing" and "servicizing" so that we can help our clients improve their businesses. For example, we track the structure and performance of product take back programs implemented by global vendors to learn what works and what does not. For lessees, we track asset disposition techniques and programs, paying special attention to how asset ownership is transfered, how liabilities are assumed, how the assets are disposed of from an environmental and security perspective, and the related standards and certifications, which vary widely by political jurisdiction. We are also now tracking environmental pollution/emissions offsets so that we can help our clients achieve pollution neutral acquisitions, such as "carbon-neutral" IT acquisitions.
Who is Doing Ecoleasing Today?
A growing number of companies are recognizing the benefits of ecoleasing, including computer manufacturers Dell, HP, and IBM, and one of Ecologic's clients, NetApp.
Compliance Is Critical
Many governmental authorities around the world, including most US states, have developed several kinds of regulations regarding asset disposition that define specific responsibilities for manufacturers and buyers. Ecologic tracks these regulations closely to understand the risks and enable our clients' compliance.
Ecologic Brings Value To Our Clients and Communities
Over the next 10 years, ecoleasing will become the dominant model in our economy. We believe our expertise and interest in ecoleasing will enable Ecologic Leasing Services to bring highly differentiated value to our clients and environmental leadership to the communities where we serve.