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Usership instead of Ownership—Building a New Business Model of Circular Procurement

Background and Goals

1. Circular procurement means “buying the service instead of the product” and “leasing instead of buying.” Consumers do not have to buy products that they will only use a few times nor will they throw away products within the product life when no longer applicable. Instead, users can use better products with reasonable prices and save cost through this model.

2. TSC has been a leader in circular procurement and continues to seek new opportunities for current business activities. We hope it can facilitate the transition to new circular economy business models and set a benchmark in Taiwan.


1. Under the government’s “Energy Conservation Action Plan for Government Agencies and Schools” (政府機關及學校節約能源行動計畫), TSC has upgraded to energy-efficient lights to enhance energy savings and bring down CO2 emission. All lightings in TSC’s business divisions and operation branches have adopted this “leasing instead of buying” model; components are recycled and reused by the supplier and circular economy is thus implemented.

2. After replacing the original lights with LED energy conservation lights, electricity usage is reduced by 1.33 million kWh each year and helped to save NT$4 million electricity cost. Carbon emission is reduced by 775,956kg/year approximately—that equals to planting 89,068 trees.

Future Development

1. The “leasing instead of buying” model will be adopted for common equipment procurement, such as air conditioning for the office. Suppliers will take care of maintenance and ensure efficient function. Equipment will be reclaimed by suppliers after the lifecycle.

2. When planning for investment, TSC will lease the facility and equipment built by the vendor. The two parties will collaborate under this win-win strategy.

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