GM, Coke, Ikea, Ecolab, Carlsberg, Henkel Support Greener Chemical Leasing Model

Chemical manufacturers around the world aspire to sell their products in largest possible quantities. However, the challenge with this traditional business model is that it tends to encourage overuse of chemicals and places human health and the environment under extra strain. To counter this situation, the United Nations Industrial Development Organization (UNIDO) has been advocating an alternative business model called “chemical leasing.”

UNIDO believes that the chemical leasing model supports efficient chemicals management. The concept behind this model is that instead of paying for the quantity of chemicals that a company consumes, it pays for the services rendered by those chemicals. For instance, the company may pay based on the volume of water that is chemically treated, the number of machinery parts painted, or the surface area of pipes chemically cleansed.

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Vikas is a staff writer for the Sustainable Development news and editorial section on Justmeans. He is an MBA with 20 years of managerial and entrepreneurial experience and global travel. He is the author of "The Power of Money" (Scholars, 2003), a book that presents a revolutionary monetary economic theory on poverty alleviation in the developing world. Vikas is also the official writer for an international social project for developing nations "Decisions for Life" run in collaboration between the ILO, the University of Amsterdam and the Indian Institute of Management.