Product-Service Systems and Sustainability

Abstract

Since 1989, the United Nations Environment Programme Divisionof Technology Industry and Economics (UNEP DTIE) has beenworking to improve current production processes through itscleaner production activities. UNEP DTIE has been a keycontributor to the international discussion arena since the UnitedNations Conference on Environment and Development (UNCED)held in Rio (in 1992) in the debate about how best to reachsustainable production and consumption. Initially activitiesfocused on influencing the supply side of the economy – howgoods and services are produced and delivered. In 1998 theUNEP sustainable consumption programme was establishedfocusing on the demand side of the economy and taking a lifecycle approach. Sustainable consumption activities aim tofacilitate better information on consumer needs, trends andbehaviours, and UNEP has completed studies on youth andlifestyles, on the question of a global consumer class, andcompleted work on UN consumer guidelines.UNEP seeks to inspire stakeholders by exposing and developingbusiness opportunities, focusing on Life Cyrcle Design, productservicesystems and local initiatives. The sustainable consumptionprogramme facilitates two multi-stakeholder initiatives. Firstly, theadvertising and communication initiative through which there is anattempt to work out efficient communication strategies in cooperationwith the advertising industry. Secondly, the Life CycleInitiative, a joint initiative under the common platform of UNEPand the Society of Environmental Toxicology and Chemistry(SETAC) on best practices for a life cycle economy. The LifeCycle Initiative encourages an Integrated Product Policy (IPP), bybringing together efforts from all stakeholder groups. Finally,UNEP has taken on the responsibility of promoting a globalunderstanding of sustainable consumption, organising workshopsaround the world to stimulate debate on different regional andnational priorities.Promoting an understanding and greater use of life-cycle thinkingprovides a significant opportunity for change. Taking into accountthe total costs (economic, social and environmental) of a product– from all the phases of its life-cycle, from material extraction toultimate disposal – enables decision-makers to reach informeddecisions. Within this context, the concept of Product-ServiceSystems (PSS) – promotes a focus shift from selling justproducts to selling the utility, through a mix of products andservices while fulfilling the same client demands with lessenvironmental impact. This businness approch has recentlyreceived increasing attention as a new way to apply an existingconcept, to both achieve economic gains whilst reducingenvironmental impacts.Given that the concept of PSS is beginning to ‘catch on’ and gainattention, it is time for UNEP to contribute to, and influence theprogress of PSS, to ensure that in concept and application itincorporates the idea of sustainability. In this context its potentialis not generally understood by the public and private sectors orcivil society. This booklet is intended to contribute to thedissemination and the discussion of the PSS concept as apromising approach to sustainability. The ultimate goal must be toachieve Sustainable Product-Service Systems.This UNEP publication is targeted at industry and government,academia and civil society to explain PSS – their potentialbenefits and limitations – in the sustainability context – using realcompany examples. To prepare this booklet, UNEP has drawn onthe knowledge and experience of PSS experts to flesh out theconcept of a sustainable PSS, to collect case studies of PSS inpractice, to begin to document both its benefits and the hurdleswhich need to be overcome in its application, and to suggestways forward in its development.