Circular economy

Leasing and automotive rental are -by their very nature- circular, since the primary goal of companies active in these sectors is to ensure their assets remain in good working condition for as long as possible. The leasing and automotive rental industry can also help promote the circular economy through encouraging customers towards use as opposed to asset purchase. This massively reduces the amount of wasted resources since customers no longer dispose of assets once they have finished using them. Instead, customers simply return the asset to the leasing or rental company, who are well placed to either re-lease the asset to another customer, re-sell the asset, refurbish it for a second/third life cycle, or (where appropriate) dispose of or recycle the asset safely.

At the end of 2019, the European Commission unveiled their long awaited European Green Deal, a package of measures aimed at making the European economy more sustainable. One of the central elements of this package is the Circular Economy Action Plan, based on the idea that resources should be used efficiently, with every phase in a products’ life cycle being designed to ensure the product, and it’s individual components, are used to their maximum potential. Leaseurope is working to ensure that the important contribution of leasing and automotive rental is this area is strengthened and promoted.