Why pay to use instead of buy? Advantages of consumption by subscription

There is no planet B, and ours is going down.

Thomas Osborne
Thomas Osborne
14 February 2023 Tuesday 04:35
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Why pay to use instead of buy? Advantages of consumption by subscription

There is no planet B, and ours is going down. But there are gestures, small and everyday, that add up when it comes to building a better world. One that respects the environment and stops climate change. The year 2030 is very close and we are still a long way from meeting the global goals set in this regard. The great change, urgent and necessary, is in our hands. In those of citizens, companies and institutions.

Reducing the environmental impact of economic activity is essential to stop the climate crisis in which we find ourselves. Luckily, more and more people are committed to this problem and, as the Cetelem Observatory points out in its study 'Sustainability and Consumption 2022', 50% of Spaniards say they take sustainability into account when paying for a product or service, 25% confess that their consumption has decreased and, of this percentage, 65% attribute it to their concern for the planet. It's time to take action.

Produce, use and throw away? No: reduce, reuse and recycle. The 3 'R' of the Circular Economy propose a system for the use of resources where the reduction, reuse and recycling of elements prevail. If we want to save the planet, we will have to move from the linear economy model based on the produce-use-throw away formula to a new paradigm based on the circular economy, in which waste becomes resources: produce-use-recycle-produce .

Large companies are increasingly committed to circular production models that minimize waste and environmental impact. Others have even turned recycling and reuse into their own business object. This is the case of Simplr, a disruptive startup and pioneer in Spain in offering, on the same platform, all the products and services necessary for daily life through a pay-per-use model. The key is in a concept: the subscription economy.

“It is an economy based on the pay-per-use model. Users access a platform and, instead of purchasing products through the traditional purchase model, they subscribe to them only for the time they need. A model totally in line with sustainable consumption objectives and an alternative for the planet”, details Àngel Bou, CEO and co-founder of Simplr.

The platform allows access to any product or service through subscriptions with easy activation and deactivation, so that they can be conveniently interrupted when they have fulfilled their function. And it works in three categories: the one for the home, with electricity, internet and gas services; mobility, with the subscription to cars, motorcycles, bicycles or scooters; and computer and electronic products. "Our intention is to sell complete solutions aimed at creating spaces and scenarios: furnishing an office or meeting rooms, providing technical equipment to new employees, processing company cars for temporary needs, hiring supplies for one or several offices...", says the CEO.

At the base of Simplr are the circular economy and sustainability. It is a sustainable consumption model based on the circular economy, since it involves the reuse, repair and renewal of existing products. “Through this circular economy we promote several lives for our products and offset their carbon footprint. In addition, we count the CO2 of the products to offset the total produced with the investment in environmental projects. Our consumption model is fully aligned with the Sustainable Development Goals of the 2030 Agenda (SDGs 12 and 15) and avoids greenwhasing”, points out Àngel Bou.

The company's latest step has been to become a founding member of the Waste Cluster of Catalonia with the aim of promoting internationalization and RD in the field of sustainability. “At Simplr we consider it essential that institutions are involved in this fight against climate change and that the business fabric makes a definitive transition towards sustainable objectives”, the co-founder qualifies.

Simplr wants to make the complicated simple for people by offering them a flexible way to subscribe to goods and services necessary for daily life. And it also wants to become a valuable business partner, a service provider and facilitator. Now that the Corporate Sustainability Reporting Directive (CSRD) has been activated, the startup can become a great ally for all of them.

In addition to the obligation for companies to audit a greater number of aspects and details in terms of sustainability, there is now another obligation for large companies, initially with more than 250 employees, and for those listed on the Stock Exchange to present, in an even more precise manner, and detailed, its activities on Governance, and not only social and environmental. The Directive, in turn, raises the sanctioning and supervision regime to levels similar to those of financial information.

“With the implementation of this new directive, companies must begin to be more exhaustive in their non-financial audits, so that there will be greater transparency of information for citizens, consumers and investors. In this sense, it will not only be enough to audit and analyze the consumption of energy, water or CO2 emissions, but companies must be accountable for other types of consumption that also affect sustainability, such as computers, mobile devices, vehicles …”, says Àngel Bou.

This measure represents a relevant change, since until now companies did not have to report on the traceability and life cycle of all these products. Because, what about the products that companies use in their day to day? What happens when a company decides to change those devices? Although many resort to donation, the reality is that many of the devices end up in landfills in the third world.

“Given this situation, it is essential to combat the greenwashing in which some companies incur -many of them due to ignorance- and move towards options that allow the promotion of the circular economy. And it is at this point where consumption by subscription will play a key role. In this way, pay per use becomes the perfect solution for companies. Without a doubt, it is a sustainable alternative that also allows full traceability of the product's life cycle, something essential in the framework of the approval of the new regulations”, explains the CEO and co-founder of the company.