Using Product-Service Systems to Enhance Sustainable Public Procurement

Product-service systems (PSS) are an innovative business approach that shifts the traditional business focus from selling physical products only (e.g. a washing machine) to selling a mix of products and services (e.g. cleaning services) that are jointly capable of meeting specific client demand (clean clothes). The key idea behind PSS is that consumers do not demand products per se, but are seeking the utility provided by products and services. One value-added of PSS lies in their potential to decouple consumption from economic growth, as they offer the possibility of meeting more needs with lower material and energy requirements. This technical report examines the nexus between product-service systems and sustainable public procurement, drawing together international experience. The aim of this report is, in particular, to demonstrate how product-service systems can be used by governments in the context of sustainable public procurement (SPP) policies and initiatives, thus contributing to a more resource-efficient, low-carbon and inclusive green economy. Some examples of the use of product-service systems by government organizations are given in the case studies in Annex I. This technical report was produced by working group 3A of the 10YFP SPP Programme.