The time has come25/06/2015
The circular economy’s time has come and it fits perfectly with what the asset finance industry is good at doing, say DLL, and the reasons are clearly and comprehensively laid out in a newly-published quality White Paper.
First, there is a clear need to find ways to produce more goods for a growing world population without depleting the planet of its finite resources.
Second, climate change, air pollution and species extinction raise the importance of making sure our imprint on the environment is as positive as possible. The circular economy concept, based on ecological business theories going back to the 1960s, calls for a manufacturing model in which goods are made to be made again, in a non-toxic closed loop system, powered as much as possible by renewable energy. All of which would help to reduce carbon emissions and ensure business has a positive impact on the environment.
Third, wasted resources mean potential value is being thrown away. Therefore, there are, as many believe, significant business opportunities in becoming more attuned to the need to develop more than one life cycle for a product. DLL is responding to a growing demand from its partners - manufacturers, dealers and end users – to develop together second and third product life cycles through repair, remanufacturing and recycling. This business model is called Life Cycle Asset Management.
In the asset finance business, financing during the whole technical lifecycle of a product helps partners facilitate effective second and third life business propositions in varied industry sectors such as automotive, healthcare and agriculture. The White Paper gives examples of Philips leasing out lighting on a cost per Lux basis, and Ricoh taking back used machines to upgrade, refurbish and put out to use again.