Yachnin Exec Research Report Final

YACHNIN & ASSOCIATES MAY 2010
Executive Report
M AY 2 0 1 0
Sustainability
Through Product
Service Systems &
Servicizing
Submitted to:
The Policy Research Initiative
B y : Ya c h n i n & A s s o c i a t e s
Sustainability Through Product Service Systems & Servicizing
PAGE 1
Contents
1.0 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.0 Overview of Subject
2.1 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.2 Categorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.3 Significance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
3.0 Examples
3.1 Business-to-Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
3.2 Business-to-Consumer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3.3 Consumer-to-Consumer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
4.0 Other Jurisdictions
4.1 The United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
4.2 EU Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
4.3 UNEP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
4.4 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
5.0 Policy Linkages
5.1 Life Cycle Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
5.2 Key Policy Issues/Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
6.0 Role for Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
7.0 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
PAGE 2
1.0 Introduction
This report addresses the subject of sustainability through product service
systems and servicizing by explaining what Product Service Systems (PSSs)
and Servicizing are, and making use of examples and data from academic and
business literature.
The report provides indications of how PSSs and servicizing can result in
sustainability and business performance benefits including those related to life
cycle management, dematerialization and related innovation. The details of
the examples demonstrate various life cycle benefits associated with PSS and
servicizing. Such life cycle benefits include reductions in resource requirements,
better materials management as well as heightened opportunity for extended
producer responsibility.
2.0 Overview of Subject

2.1 Definitions
The most agreed to and current definition of a PSS has two parts:
Product-service (PS): a mix of tangible products and intangible

service designed and combined so that they are jointlycapable of
fulfilling final customer needs.
Product-service system (PSS): the product-service including the

network, technological infrastructure and governance structure (or
revenue model) needed to produce a product servicei.
The PSS concept is most frequently advanced as an economic space that

includes all the ways that products and services can be combined in a value
proposition in order to meet customer needs.
Servicizing refers to the intensification of the service component of a PSS. A
business model that adds services to create value in new ways beyond business
as usual is considered a servicizing model.
Sustainability oriented PSSs or green servicizing models are those that
are innovative and emergent in adding value in improved sustainability or
environmental performance over business as usual.
2.2 Categorization
PSSs are generally classified into three categories: product-oriented, use-oriented

and result-oriented. The attributes of each of these types is highlighted in
Figure 1.
PAGE 3
Figure 1 - Product Service Systems and Servicizing
Product Oriented
Value Creation: Add services to
products.
Examples: Extended warranties,
maintenance, upgrading, and
ended of life management.
Ownership: Customer owns
product.
User Oriented
Value Creation: Provide access
to the product and the function it
provides.
Examples: Leasing, rental.
Ownership: Customer does not
need to own the product.
Result Oriented
Value Creation: directly provide
function to the customer.
Examples: Waste management
[Tangible], Communication
[Intangible].
Ownership: Customer pays for
functionality rather than use of or
access to a particular product.
Servicizing
In result-oriented servicizing models the focus of the producer and consumer shifts
from the provision and acquisition of the product to provision and acquisition
of the functionality that the product provides (e.g. operational leases). In other
instances, such as use-oriented PSSs, the shifts from business as usual to a
higher service orientation involve various forms of service-product mix (such
as telephone with voice mail service as opposed to an answering machine).
2.3 Significance
Such PSSs and Servicizing contribute to a restructuring of the economic

relationships that mediate how products deliver a function or utility. This
restructuring translates into notable changes in the design, manufacture,
distribution, use, or end of life management of products or infrastructure. In
addition, while not easily captured by economic statistics, PSSs are an important
determinant of an economys overall performance as well as its environmental
performance.
PAGE 4
3.0 Examples
This report addresses the subject of sustainability through product service systems
and servicizing. It explains what product service systems (PSSs) and Servicizing
are and makes use of examples and data from the literature to illustrate.
3.1 Business-toBusiness
General Motors (GM) pioneering efforts in its use and management of chemicals
provides a helpful example of business-to-business PSS and Servicizing. For close
to two decades, GM has contracted out the management of its chemicals to
practitioners of chemical management services (CMS). Among the products
involved are metal removal fluids, metal-forming fluids, lubricants, greases,
adhesives, paints, and compressed gases.
GMs program outsources CMS providers the tasks of purchasing, delivering,
and inventorying its chemicals as well as facilitating all environmental reporting
and data tracking, and sometimes this involves orchestrating process efficiency
improvements. This arrangement has allowed GM to realize a 30% reduction in
its chemical use and a 30% reduction in the cost of purchased chemicals and
associated management activities. GM has now implemented CMS in nearly
90% of its manufacturing facilities worldwide and its approach has become a
widely emulated best practice in this and other industriesii.
The CMS model delivers results by aligning the incentives of chemical suppliers
and customers. In traditional supplier-customer relationships, the chemical
supplier's profitability is a function of the volume sold. The more chemicals sold,
the higher the revenue for the supplier. The customer, on the other hand, has
an opposite incentive to reduce costs or the amount of chemicals purchased.
Under the CMS model, suppliers become chemical management providers and
are remunerated for successfully delivering and managing chemicals while
working to minimize total life cycle cost. The supplier's profitability is based
on superior performance (e.g. number of cars painted), not on selling more
chemicals (e.g. gallons of paint sold) (see Figure 2).
PAGE 5
Figure 2 - Aligining Incentives

Traditional Relationship:
Conflict incentives
Supplier
CMS Modelhim:
Aligned incentives
Customer
CMS Provider
Total Lifecycle
Cost
(material, labour,
waste, inventory)
Material Cost
(price, volume)
wants to
increase
Customer
wants to
decrease
wants to
decrease
wants to
decrease
Results: reduced cost, risk, environmental impact; better reputation
The environmental and business performance benefits of CMS are well

established. Environmental benefits include: reduced chemical use and waste,
better compliance reporting and compliance management, and demonstrated
experience in chemicals handling which translates into reduce risks of spills,
exposure and improper disposal. Broader business benefits include the bottom
line contributions of lower total life cycle costs as well as reputational benefits
associated with superior corporate citizenship.
3.2 Business-toConsumer
In an increasingly environmentally
conscious and cost-conscious world,
suppliers can make their business both
more sustainable and more profitable
by focusing on services that extend the
efficiency and value of their products
Sandra Rothenberg,
Rochester Institute of Technology
PAGE 6
More recent than the development and uptake

of green PSSs and Servicizing in the business-tobusiness area, is the expansion of such models in
the business to consumer realm. Perhaps the most
familiar example of this is the rapidly growing
business of car sharing. Here, organizations such as
vrtucar, AutoShare and Communauto, in Canada,
and zipcar, in the US, are emerging as successful
businesses that are providing the broadly available
functionality of automobiles while reducing the
requirement for individual ownership. This is
translating into notable benefits zipcars data, for
example, indicates that: its customers drive 50% less and purchase 40% fewer
cars; and, that each zipcar replaces approximately 20 privately owned vehicles.
Another example from the business-to-consumer area is that of the Bixi bicycle
sharing service. Now on three continents, Bixi currently has approximately 278
stations, 8,500 members and 77,000 occasional users. The organizations own
data indicates that usage has so far amounted to the equivalent of travelling
3.5 million kilometres, or 87 times around the world, and 910,000 kilograms
of avoided greenhouse gas emissions.
3.3 Consumer-toConsumer
People have this mindset that being

green is expensive. Electric cars and
solar panels are not accessible to the
majority of people. People dont realize
that reusing and sharing can really
help the environment as well as helping
people. If lots of people in society adapt
to this kind of thing, where we share
with each other, we could make a big
difference in the environment very fast.
Punsri Abeywickrema,
Rentalic founder
Beyond this, and most recent, is the trend toward

product sharing in the consumer-to-consumer
realm. The Internet is enabling new and innovative
do it yourself product service systems that involve
a sharing of products among individuals across
entire communities. These trends, and perhaps
others yet to emerge, have substantial potential to
alter consumer behaviour and related consumption
patterns by helping move people away from
the notion of individuals requiring ownership of
household items when their use of them might
only be occasional. The recent launch and success
of websites such as Rentalic , Neighborrow and
NeighborGoods is a testament to the power
and potential of this new consumer-led, citizenempowering type of servicizing.
4.0 Other Jurisdictions

Certain other jurisdictions have been addressing the field of sustainabilityoriented PSSs and Servicizing . These include the European Union, the United
Nations, Japan, Korea and the Netherlands.
Among the most current and notable research efforts are those recently
undertaken by the United States Environmental Protection Agency (US EPA),
The European Union (EU) Commission and the United Nations Environment
Programmes Department of Industry, Trade and the Environment (UNEP
DTIE). Their efforts provide additional examples and performance data as
well as insights into barriers to servicizing as well design considerations.
PAGE 7
4.1 The United

States
In September of 2009, the US Environmental Protection Agency (EPA)

released a report entitled Green Servicizing for a More Sustainable US
Economy: Key Concepts, Tools, and Analyses to Inform Policy Engagement. This report re-invigorates this issue after a gap of some 10 years at
which time the EPA commissioned the then seminal Servicizing: The Quiet
Transition to Extended Product Responsibility (Tellus Institute, 1999) , and
contributed resources towards Leasing: A Step Toward Producer Responsibility (INFORM, 2000).
Foremost among the report's findings is the conclusion that:
Green servicizing can make a significant contribution to a more
sustainable US economy by providing more eco-efficient alternatives to the business as usual delivery of environmentally
problematic and economically critical functions and products.
However, achieving its full potential will require policy engagement.
Towards this end, a possible key initiative for the US EPA would be
to develop and implement a strategy to achieve the full eco-efficiency potential of functional procurement and efficiency services
models.Product-service system (PSS): the product-service including
the network, technological infrastructure and governance structure
(or revenue model) needed to produce a product service.
The report summarizes findings from the literature regarding the environmental performance for ten functional procurement models that have been
found to offer substantial sustainability and life cycle gains: car sharing,
chemical management services, deconstruction, energy service companies
(ESCOs), integrated and performance-based pest management services,
information technology (IT) life cycle solutions, remanufacturing, resource
management contracting, telepresence, and third-party logistics. The US
EPAs findings for a subset of three of these models are listed in the following Table.
PAGE 8
Table 1 Example US EPA Findings
Business Model
ESCOs
An ESCO provides energy-efficiency-related
and other value-added services and assumes
performance risk for their project or product
that is, their compensation and profits are tied
to energy efficiency improvements (and thus,
savings in purchased energy costs) actually
obtained by the client.
Primary customer sectors
Manufacturing facilities, institutions, and offices,
including government
IT Lifecycle Solutions
IT Lifecycle Solutions are business offerings
that bundle provision of corporate IT equipment
(particularly personal computers, servers
and printers) with associated services. The
solutions provider is responsible for most or all
configuration, maintenance, repair, and upgrade.
Large corporations & institutions, government
Resource Management (RM) Contracting

RM is a performance-based approach to waste
management. It centers on an innovative
contractual partnership between a wastegenerating organization and a qualified waste
contractor that changes business as usual
compensation structures and otherwise
incentivizes waste minimization and recycling.
Manufacturing facilities, institutions, schools
districts, commercial property managers.
Environmental Performance:
Improvement Mechanisms and Findings
Reduced Energy Consumption

According to a 2007 review of the ESCO industry
completed
by the Berkeley National Laboratory, ESCO projects
on average reduce energy consumption by 23% or 47
kWh/m2/yr. Using US EPAs Emissions & Generation
Resource Integrated Database, this corresponds to
average reductions of 67.42 lbs of CO2/ m2/yr, 0.34 lbs
of NOx/m2/year, and 0.15 lbs of SO2/ m2/year.
Reduced Water Consumption
A small percentage of ESCO projects also result in
reduced water consumption.
Reduced Incidence of Improper Disposal and

Uncontrolled Recycling
End-of-lease responsibilities are placed on the
equipment provider, which is much more likely than
individual customers to have appropriate disposal and
recycling practices in place.
Increased Reuse, Recycling, and Parts Salvaging
Equipment providers have a strong financial incentive
to reuse, recycle, or salvage the equipment they lease.
According to one study[i], enhanced recovery and releasing together may reduce PC lifecycle impacts by
~50%.
Increased Reuse, Recycling, and Overall Waste

Minimization
RM moves waste up the reduce, reuse, recycle
hierarchy, and more truly makes disposal the waste
management option of last resort. For example, General
Motors, which pioneered the model, realized an average
reduction of 20% in overall waste generation, a 65%
increase in recycling, and a 60% decrease in disposal
tonnage across 50 North American plants.
PAGE 9
4.2 EU Commission
In November of 2008, the EU Commission released Innovative Business Models

with Environmental Benefits . This substantial report is similar to the US EPA
report in that it also focuses on assessing the promise of functional procurement
servicizing models for realizing environmental gains. The EUs report looks at a
smaller subset of these types of business models including ESCOs, design/build/
finance/operate, CMS, resource management, remanufacturing and car sharing.
The report finds that sustainability-oriented PSSs offer substantial promise in
terms of potential market, value generation and environmental benefits.
With respect to economic results, it suggests that there are annual wins of
20% or more that can be split between the supplier and the customer.
At the same time, however, the report questions why, given such benefits,
the spread of such PSSs has not been greater. In this regard, it discusses eight
different barriers to PSSs, five that it refers to as innovation barriers and three
that it refers to specific barriers of particular relevance to environmentallyfriendly business models. Among the innovation barriers are lack of trust
between customer and supplier, aversion to the new risks, need for a common
vision, inertia and transaction costs. Among the specific barriers are uncertain
incentives, lack of knowledge and requirements for new infrastructure.
As part of this analysis, the report examines how successful initiatives have
overcome these barriers and identifies actions for companies and policy-makers
to take in order to broaden the road to PSS.
4.3 UNEP
In January of 2010, this multilateral agency released Design for Sustainability:

A Step-By-Step Approach . This document represents the collaborative result
of a long term partnership between UNEP, Delft University of Technology and
international design for sustainability experts from the Netherlands, Sweden, Italy,
France, Germany, Japan, and Australia, with support from the UN International
Development Organization, the Swedish EPA, and InWent, Germany.
The report provides a guide for designers and industry on how to approach
design for sustainability. It addresses three different design approaches: the
redesign of existing products, radical sustainable innovation and new product
development.
Chapter 7 of the report is devoted to PSSs. In this chapter, UNEP provides an
introductory overview of PSSs and why they are important to consider as part
of integrated approaches to sustainable design and innovation.
PAGE 10
Of particular interest in the current context is the reports coverage of PSSs and
servicizing as part of effective approaches to design for sustainability. Here,
UNEP is indicating that PSSs are an important consideration in any product
design planning and execution.
4.4 Other
In addition to these examples, other jurisdictions have also demonstrated

recent interest in PSS and Servicizing. This is appears to be particularly true of
the Japanese and Korean governments both of which are supporting current
research and pilot projects on PSSs and Servicizing both within their own
ministries and through support of not-for-profits .
The Netherlands and the Dutch Ministry of the Environment is also worthy of
mention. This jurisdiction played an important role in the early research into
PSSs and Servicizing that took place in the late 1990s .
5.0 Policy linkages

The preceding discussion of examples and the activity of other jurisdictions points
to a variety of sustainability and business performance benefits including those
related to life cycle management, dematerialization and related innovation.
5.1 Life Cycle
Benefits
The details of the examples demonstrate various life cycle benefits associated
with PSS and Servicizing. These include reductions in resource requirements,
better materials management as well as heightened opportunity for extended
producer responsibility.
Reductions in Resource Requirements
PSSs and Servicizing can result in substantial reductions in consumption of
water, energy, and other natural and human resources. In some cases, as
in the examples from the transportation sector of car and bicycle sharing
discussed above, servicizing can reduce the number of individual copies of
products (i.e. cars and bicycles), and the associated resources required to
service a given functional demand. In other cases, as in the result-oriented
functional procurement examples of GM, ESCOs, and Resource Management
Contracting highlighted previously, innovative performance-based contractual
relationships are established to align incentives of both the customer and the
PAGE 11
producer toward providing the same level of functionality with fewer resources,
including through waste minimization, reuse, and recycling.
Better Materials Management
Such models can also make significant contributions to better overall materials
management. In the example of GM, outsourcing chemicals management to
a specialist service provider has resulted in fewer spills and other such issues.
This is largely due to the fact that the specialist tends to be more experienced
and more focused on the specific tasks associated with chemicals management
than individual operators/employees and can have superior access to required
equipment and facilities.
The IT Lifecycle Solutions example detailed in Table 1 also indicates how
sustainability-oriented PSSs and Servicizing can lead to better materials
management. It again points out that under functional procurement orientations,
equipment providers have a stronger financial incentive to reuse, recycle or
salvage the equipment they lease. The example also indicates that there is likely
to be a reduced incidence of improper disposal and uncontrolled recycling since
end-of-lease responsibilities are placed on the equipment provider which is
much more likely than the customer to have appropriate disposal and recycling
practices/facilities in place.
Heightened Opportunity for Extended Producer Responsibility
PSSs and Servicizing business models also offer a heightened opportunity for
extended producer responsibility. This is because in functional procurement,
such as IT equipment leasing as highlighted above, the tendency is for the
producer to maintain more of the responsibility for environmental stewardship
throughout the product life cycle than in traditional models.
The encouragement of further development and expansion of such business
models therefore holds promise for addressing policy requirements for extended
producer responsibility through voluntary and non-regulator approaches. This is
of particular interest to North American jurisdictions where there are relatively
few federal laws and regulations for extended producer responsibility and the
potential gains from servicizing may therefore be greatest.
PAGE 12
5.2 Key Policy

Issues/Needs
Policy makers show increasing interest in services-led result-oriented PSSs and

green servicizing; this is both because they have demonstrated substantial ecoefficiency and life cycle gains and because of the extent of well-established and
successful examples such as CMS and waste management contracting. Recent
efforts by the US EPA and the EU Commission are illustrative of the efforts of
various jurisdictions to focus on understanding these models with a view to
strengthening, advancing, and creating more of them.
The work of the US EPA, and others, suggests that there are two key issues
with advancing these models that can be appropriately addressed through
policy research and development. These include that:
current sustainability-oriented servicizing models have not realized

their full potential and there is no guarantee that these will be
broadly taken up; and,
model variants differ in the degree to which they are green and
there is little certainty that the greenest versions of these models
are the ones that will expand and become business as usual.
The US EPA report, in particular, points to the need for policy that:
facilitates the development of market and regulatory settings

that that can help high potential sustainability-oriented PSSs and
Servicizing models to become the new business as usual; and,
increases the likelihood that the greenest of these business models

will be the ones that are adopted and become most common.
6.0 Role for Governments

Governments can play a role in helping advance sustainability-oriented PSSs
and Servicizing models. At the very least, governments can help to develop
understanding of the current state-of-play regarding this important dimension
of the economy, society, and the environment. At the most, governments can
develop or adjust policy instruments to better enable organizations to take up
and advance best practices across different sectors of the economy.
An important first step for all governments seeking to contribute to advancement
of PSSs is to develop a comprehensive understanding of the current situation
within their respective jurisdictions, including linkages, such as to various aspects
of life cycle management. Once this has been accomplished, further attention
can be directed to needs that are more specific.
PAGE 13
7.0 Conclusion
Innovative and emergent sustainability-oriented PSSs are becoming increasingly
common with well established examples now in many sectors.
These sustainable business models have been demonstrated to have many
environmental and business performance benefits. This is particularly true for
the result-oriented functional procurement type models in which the emphasis
is on the service-led delivery of functionality. Such models have been found
to be associated with many life cycle benefits including reductions in resource
requirements, better materials management as well as heightened opportunity
for extended producer responsibility.
Other jurisdictions are active in working to better understand these models and
on advancing them. From the US EPA work, in particular, the takeaway is that
supportive policy development is required if opportunities are to be maximized.
PSSs and Servicizing can form an important part of any governments orientation
to enhanced life cycle approaches. A key first step for interested governments
moving along this pathway is to develop understanding about what is currently
taking place within their jurisdictions.
PAGE 14
Tukker A, C van den Berg and U Tischner, Chapter 2: Product-services: a specific value
proposition in New Business for Old Europe: Product-Service Development, Competitiveness

and Sustainability, 2006; and, United States, Environmental Protection Agency, Green Servicizing
for a More Sustainable US Economy: Key Concepts, Tools, and Analyses to Inform Policy
Engagement, 2009.
Chemical Strategies Partnership, http://www.chemicalstrategies.org/implement_whatiscms.
ii
htm, accessed April 16, 2010.

zipcar, http://www.zipcar.com/is-it/greenbenefits, accessed March 25, 2010.
iii
Bixi, http://www.bixisystem.com/home, accessed April 12, 2010.
iv
Rentalic, http://www.rentalic.com, accessed March 15.
A detailed assessment of the efforts of other jurisdictions is beyond the scope of the original
vi
terms of reference of the background papers upon which this Executive Research Report is
based. It awaits a more thorough investigation that could include direct contact to assemble a
more complete perspective including what jurisdictions are doing with their research outputs
and how they are acting on findings.
United States, Environmental Protection Agency, Green Servicizing for a More Sustainable US
vii
Economy: Key Concepts, Tools, and Analyses to Inform Policy Engagement, 2009.
Tellus Institute, Servicizing The Quiet Transition to Extended Producer Responsibility, 1999.
viii
INFORM, Leasing: A Step Toward Producer Responsibility, 2000.
ix
Nagashima, K T Honda, H N Xuan, Y Wang, R Yamamoto, The Reduction Effect of
Environmental Load by Leasing Personal Computers in Transactions of the Materials Research

Society of Japan, 30:4, 2005.
EU Commission, Innovative Business Models with Environmental Benefits, 2008.
xi
United Nations Environment Programme, Design for Sustainability (D4S): A Step-By-Step
xii
Approach, 2010.
See, for example, Japan, Ministry of Economy, Trade and Industry, Green Servicizing Businesses
xiii
A New Society Being Created by Businesses Focusing on Function, 2007.

See Netherlands, Dutch Ministry of the Environment, Product Service Systems, Ecological
xiv
and Economic Basics, 1999.
PAGE 15

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YACHNIN & ASSOCIATES MAY 2010

Sustainability Through Product Service Systems & Servicizing

YACHNIN & ASSOCIATES MAY 2010

Sustainability Through Product Service Systems & Servicizing

YACHNIN & ASSOCIATES MAY 2010

2.0 Overview of Subject

Product-service (PS): a mix of tangible products and intangible

Product-service system (PSS): the product-service including the

The PSS concept is most frequently advanced as an economic space that

PSSs are generally classified into three categories: product-oriented, use-oriented

Sustainability Through Product Service Systems & Servicizing

YACHNIN & ASSOCIATES MAY 2010

Figure 1 - Product Service Systems and Servicizing

Such PSSs and Servicizing contribute to a restructuring of the economic

Sustainability Through Product Service Systems & Servicizing

YACHNIN & ASSOCIATES MAY 2010

Sustainability Through Product Service Systems & Servicizing

YACHNIN & ASSOCIATES MAY 2010

Figure 2 - Aligining Incentives

Results: reduced cost, risk, environmental impact; better reputation

The environmental and business performance benefits of CMS are well

More recent than the development and uptake

Sustainability Through Product Service Systems & Servicizing

YACHNIN & ASSOCIATES MAY 2010

People have this mindset that being

Beyond this, and most recent, is the trend toward

4.0 Other Jurisdictions

YACHNIN & ASSOCIATES MAY 2010

4.1 The United

In September of 2009, the US Environmental Protection Agency (EPA)

Sustainability Through Product Service Systems & Servicizing

YACHNIN & ASSOCIATES MAY 2010

Table 1 Example US EPA Findings

Resource Management (RM) Contracting

Reduced Energy Consumption

Reduced Incidence of Improper Disposal and

Increased Reuse, Recycling, and Overall Waste

Sustainability Through Product Service Systems & Servicizing

YACHNIN & ASSOCIATES MAY 2010

In November of 2008, the EU Commission released Innovative Business Models

In January of 2010, this multilateral agency released Design for Sustainability:

Sustainability Through Product Service Systems & Servicizing

YACHNIN & ASSOCIATES MAY 2010

In addition to these examples, other jurisdictions have also demonstrated

5.0 Policy linkages

Sustainability Through Product Service Systems & Servicizing

YACHNIN & ASSOCIATES MAY 2010

Sustainability Through Product Service Systems & Servicizing

YACHNIN & ASSOCIATES MAY 2010

5.2 Key Policy

Policy makers show increasing interest in services-led result-oriented PSSs and

current sustainability-oriented servicizing models have not realized

facilitates the development of market and regulatory settings

increases the likelihood that the greenest of these business models

6.0 Role for Governments

YACHNIN & ASSOCIATES MAY 2010

Sustainability Through Product Service Systems & Servicizing

YACHNIN & ASSOCIATES MAY 2010

proposition in New Business for Old Europe: Product-Service Development, Competitiveness

htm, accessed April 16, 2010.

Bixi, http://www.bixisystem.com/home, accessed April 12, 2010.

Rentalic, http://www.rentalic.com, accessed March 15.

INFORM, Leasing: A Step Toward Producer Responsibility, 2000.

Nagashima, K T Honda, H N Xuan, Y Wang, R Yamamoto, The Reduction Effect of