As global attention turns toward climate resilience, the service industry is facing a profound shift. What was once a conversation confined to manufacturing and supply chains is now a pressing agenda for service leaders.
Author Nick Saraev
Photo: Freepik
Sustainability is no longer a nice-to-have—it’s becoming a core business imperative.
The service sector has a unique opportunity at the intersection of environmental responsibility and economic resilience. Whether it’s field service operations, maintenance, or aftermarket support, sustainable practices can not only reduce environmental impact but also drive long-term profitability and customer loyalty.
This article outlines how companies can embed sustainability in service operations and why doing so is key to staying competitive in a changing world.
Rethinking Sustainability: Beyond Compliance
Historically, sustainability in services was reactive and focused on regulatory compliance or corporate social responsibility. But the landscape is changing.
Today’s customers, investors, and regulators are placing increased pressure on companies to show measurable progress in sustainability. Meanwhile, the cost of inaction is rising. Energy inefficiencies, wasted materials, and high emissions are becoming liabilities.
More forward-thinking service organisations are treating sustainability as a strategic growth lever, not a cost centre. And with tightening margins and growing scrutiny, that shift is not only logical but necessary.
Start With the Metrics That Matter
Sustainable transformation begins with measurement. Yet many service organisations lack visibility into key data points that drive emissions and resource usage.
Start by asking:
- How much fuel are your technicians using on service calls?
- What percentage of parts or tools are discarded or replaced unnecessarily?
- How often are return visits required due to inefficient first-time fixes?
- Can you quantify the energy consumption of your service equipment?
Field service management platforms and IoT-connected assets can provide real-time data needed to benchmark performance and identify hotspots.
Once these insights are in place, companies can set realistic sustainability targets aligned with global frameworks such as the Science Based Targets initiative or the UN’s Sustainable Development Goals.
Three Pillars of Sustainable Service Operations
Delivering on sustainability takes practical, operational change. While every organisation’s journey will look different, there are three different key areas where service leaders can begin making a tangible impact.
1. Optimised Field Service Logistics
One of the fastest ways to reduce a service organisation’s carbon footprint is by optimising technician routes. Dynamic scheduling and route planning software helps cut unnecessary travel, reduce fuel consumption, and improve service response times.
Remote diagnostics and predictive maintenance are also important. By resolving issues before they escalate—or without dispatching a technician at all—companies can save both emissions and costs.
In fact, predictive maintenance can reduce unplanned downtime by up to 50% and maintenance costs by 10-40%.
2. Circular Economy Thinking
Embracing a circular economy model, where products and materials are reused, refurbished, or remanufactured, extends the lifespan of serviceable goods and reduces waste.
Companies like Rolls-Royce have already begun repairing and reusing spare parts to manage supply disruptions while reducing resource use.
For service organisations, this might mean offering customers repair over replacement, reclaiming parts for refurbishment, or partnering with suppliers for take-back schemes.
This is not only better for the environment but also creates new revenue streams in the form of service contracts, refurbishment fees, or remanufactured product sales.
3. Sustainable Spare Parts & Inventory Management
Carrying excess inventory increases warehousing costs and the risk of waste. But stockouts drive rush orders, express shipping, and unnecessary emissions.
The key is smart inventory management, using AI and demand forecasting to maintain lean, efficient parts inventories.
Some OEMs are also investing in 3D printing and additive manufacturing to create spare parts on demand, significantly reducing the environmental footprint of logistics.
Sourcing sustainable materials and working with eco-certified suppliers is another strategic step. Your sustainability performance is only as strong as your weakest link—and in many cases, that link is buried deep in the supply chain.
Embedding Sustainability in the Customer Experience
The modern customer is more informed (and more value-driven) than ever before. In many sectors, buyers are beginning to factor in a company’s environmental footprint when choosing service providers.
Sustainability should be visible in every part of the customer journey:
- Offer digital documentation over paper-based reports
- Provide carbon reporting dashboards for enterprise clients
- Promote sustainable service options (e.g. energy-efficient replacements or remote assistance)
Done well, these efforts can enhance customer loyalty and even open up new markets. A McKinsey report found that companies with strong ESG credentials often see faster growth and higher valuation multiples than their less sustainable peers.
Empowering Technicians for Sustainable Impact
Service technicians are the frontline of your sustainability strategy. But they need the right tools, training, and incentives to succeed.
This could include:
- Training on sustainable troubleshooting methods
- Mobile tools to avoid unnecessary travel (e.g. AR for remote support)
- Clear KPIs tied to efficiency and emissions
- Recognition programmes for green performance.
When sustainability is part of the culture and not just the corporate report, it has a ripple effect across operations and employee engagement.
Profitability and Sustainability: A Shared Goal
Contrary to outdated assumptions, sustainability does not have to mean higher costs. In fact, many sustainable service practices—such as reduced travel, efficient inventory management, and predictive maintenance—have immediate cost-saving implications.
Moreover, they build resilience against external pressures: energy price fluctuations, supply chain disruptions, and evolving customer expectations.
When aligning operational excellence with environmental responsibility, businesses can future-proof themselves while doing good for the planet.
Looking Ahead: Making It Stick
Building a sustainable service model is not a one-time project—it’s a continuous journey. Start small, measure what matters, and iterate.
Here’s a simple roadmap:
- Audit your current service practices for waste, inefficiency, and emissions.
- Set clear sustainability goals tied to business outcomes.
- Invest in technologies that improve efficiency and visibility.
- Train your people to support sustainability habits.
- Share your progress transparently with customers and stakeholders.
Sustainability in service isn’t just about compliance or reputation. It’s about staying relevant, resilient, and ready for the future.
