Page 362 - Design for Environment A Guide to Sustainable Product Development

CHAPTER 19

Service Industries

Environmental Footprint of Services
While the majority of this book has focused on product develop-
ment and manufacturing industries, service industries are just as
important in determining the environmental footprint of our eco-
nomic system. Service providers utilize products and vehicles, con-
sume materials and energy, occupy space, and generate waste, just
like manufacturing companies. According to the U.S. Department of
State, services produced by private industry accounted for 67.8%
of U.S. gross domestic product in 2006, with real estate and financial
services, such as banking, insurance, and investment on top. Other
leading categories of services are wholesale and retail sales; trans-
portation; health care; legal, scientific, and management services;
education; arts; entertainment; recreation; hotels and other accom-
modations; restaurants, bars, and other food and beverage services.
Service industries tend to be less natural resource-intensive
than manufacturing industries, as shown in Figure 19.1.* From a
life-cycle perspective, however, service industries are at the “top of
the food chain” because they consume the products of other indus-
try sectors, including material extraction, manufacturing, and power
generation [1]. It follows that eco-efficient services can make a sub-
stantial difference in a company’s environmental footprint. Many
companies have begun using electronic communication services,
such as telecommuting, teleconferencing, and virtual meetings, as a
substitute for physical travel. But according to the Institute for Sus-
tainable Communication those electronic services may also have
significant environmental impacts, and companies should be aware
of the indirect energy and material burdens associated with their
communication supply chain [2].
In addition, service industries rely largely on people, yet most
life-cycle studies do not account for the environmental footprint of

*This analysis is based on the life-cycle exergy assessment methodology described
in Chapter 9, which quantifies natural capital flows in terms of available energy
(solar equivalent joules).

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