Press Contact: Sophie Cardona: (212) 361-2400, ext. 244 , or email cardona@informinc.org

FOR IMMEDIATE RELEASE, January 24, 2001

NEW STUDY SHOWS THAT PRODUCT LEASING CAN BE EFFECTIVE, UNDER CERTAIN CONDITIONS, AS A CATALYST FOR LESS WASTEFUL, MORE RECYCLABLE PRODUCTS

New York, NY -- ­ January 24, 2001 ­ A study released today by INFORM, a national environmental research organization, examines the practical implications of product leasing to determine the extent to which it results in producers having responsibility for their products at end of life. The study also explores the conditions under which leasing provides an impetus for companies to redesign their products, so that they are less wasteful and easier to reuse, remanufacture and recycle.

The study, Leasing: A Step Toward Producer Responsibility, looks at the leasing of personal computers, other office machines, carpet, and cleaning equipment, and includes case studies of The Xerox Corporation, Pitney Bowes, Inc., Interface, Inc., and AB Electrolux. These case studies reveal which leasing arrangements are most effective in promoting product redesign for greater materials efficiency. They also point out obstacles and barriers.

Only operating leases ­ as opposed to capital leases ­ increase the likelihood that the manufacturer will retain ownership of a product and responsibility for that product at end of life. The study finds, however, that ownership retention depends on what company acts as lessor and how the product is handled at the end of the lease term. In addition, product take-back under operating leases differs significantly from take-back required by extended producer responsibility (EPR) legislation, which generally includes recycling targets and reporting requirements.

"In the absence of EPR legislation in the United States, product leasing can be a step in the right direction," said Bette K. Fishbein, principal author of the study and senior fellow at INFORM. "This study clarifies for businesses and government how leasing can achieve its greatest potential for conserving resources for future generations."

"With this study, INFORM has again delved into an area that is much discussed and has discovered what works and what doesn't with respect to moving toward sustainability," said Joanna Underwood, the founder of INFORM. "Understanding these dynamics is critical in a world in which both consumption and waste are growing dramatically and which will soon have to support close to 10 billion people. There is a particular need to address these issues in the United States, which contains five percent of the world's population but consumes over 25 percent of its resources."

"Corporations must be encouraged to redesign their products to use materials more efficiently," continued Ms. Underwood. "A strong impetus for such product redesign is ensuring that producers have responsibility for their products at end of life, and this study describes how leasing can best be employed to that end."

The other co-authors of the study are Patricia S. Dillon of the Gordon Institute at Tufts University and Lorraine S. McGarry, a Doris Duke Foundation fellow at INFORM.

The full text of Leasing: A Step Toward Producer Responsibility is available online at www.informinc.org/leasingepr.php. Printed copies can be obtained by calling INFORM at 212-361-2400 x240.

INFORM is a national nonprofit organization that identifies practical ways of living and doing business that are environmentally sustainable. INFORM's reports on solid waste prevention are respected references worldwide.