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Role of servitization in ESG/ CSR investment portfolios

Updated: Oct 12, 2023

Servitization, if deployed properly, has a direct impact on the sustainability of the resources employed to deliver products and services, indeed an environmentally friendly initiative.


The emerging new OEM business model, often referred to as ‘Servitization’, is focused upon increasing the economic life of a machine asset by landing Aftermarket Advanced Service agreements that impact the management of an asset’s lifetime capabilities, operability, valuation, employability, AND sustainability, while concurrently increasing the efficiency of the delivery of the services…. a win-win for the ‘E’ of Environmental Societal Governance [ESG]. Note that other terms that include much of ESG reporting are Corporate Social Responsibility [CSR] and Triple Bottom Line [TBL].

Below is a chart from Aon’s “Global Perspective On Investing” report on factors pushing for more responsible investment in the future:


Source: Aon’s Global Perspective On Responsible Investing report

Some of the terms included in the overarching term ‘Environment’ employed in ESG are circular economy, remanufacture, overhaul, rebuild, refurbish, recondition, etc.



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