Bangko Sentral ng Pilipinas Philippines SFTG Navigator

Product-as-a-service and other circular use- and result-oriented service models contribution to circular economy — Contribution to the transition to a Circular Economy

Sector: Wholesale, retail and trade
Description

Providing customers (physical person or legal person) with access to products through service models/shared service facilities, which are

•use-oriented services, where the product is still central, but its ownership remains with the provider and the product is leased, shared, rented or pooled;

•result-oriented services, where the payment is pre-defined and the agreed result (i.e. pay per service unit) is delivered.

Scope of Assets

Examples of products and components that are under the scope of this activity is as follows:

-Textiles, wearing apparel, leather and related products

-Wood, wood and cork products, furniture, straw and plaiting materials, clay building materials

-Rubber and plastic products and machinery, porcelain and ceramic products

-Metal and fabricated metal products, cutlery, tools, general hardware, tanks, reservoirs and containers of metal

-Computer, electronic and optical products and recorded media

-Electrical, transport, non-domestic ventilation and cooling equipment

-Lifting and handling equipment, office machinery and equipment, power driven hand tools

-Machinery for food and beverage processing except tobacco

-Machinery for textile, apparel, leather, paper and paperboard production

-Plastic and rubber machinery, air and spacecraft related machinery

-Other manufacturing also is included

PSIC/ISIC code

46XXX - Wholesale Trade, Except of Motor Vehicles and Motorcycles (ISIC 46XX)

47XXX - Retail trade, except of motor vehicles and motorcycles (ISIC 47XX)

77XXX - Rental and leasing activities (ISIC 77XX)

Technical Screening Criteria

Substantial contribution criteria

The activity complies with all the following criteria:

  1. The activity provides the customer (physical or legal persons) with access to, and use of product(s), while ensuring that the ownership remains with the company providing this service, such as a manufacturer, specialist or retailer. The contractual terms and conditions ensure that all the following sub-criteria are met1:
    • there is an obligation for the provider of the service to take back the used product at the end of the contractual agreement
    • there is an obligation for the customer to give back the used product at the end of the contractual agreement
    • the provider of the service remains owner of the product
    • the customer pays for access to and use of the product, or the result of access to and use of this product
  2. The activity leads to an extended lifespan or increased use intensity of the product in practice.
  3. For wearing apparel, where the economic activity involves laundry and dry-cleaning of used wearing apparel, the activity complies with an ISO type 1 ecolabel or equivalent.
  4. If the service involves delivery of the goods to a client, including when the activity is operated as an e-commerce, the primary and secondary packaging complies with one of the following criteria2:
    • The package is made of at least 65% of recycled materials. The key criteria for the raw materials are as follows:
      • No coating with plastics/metals are used for packaging
      • Plastic packaging uses only monomaterials without adding coatings or halogen-containing polymers
      • If the packaging is made from paper or cardboard, the remaining primary raw material are certified by the Forest Stewardship Council (FSC), the Programme for the Endorsement of Forest Certification Schemes (PEFC International), or equivalent recognized schemes.
    • The packaging is designed to be reusable in a closed-loop or opened-loop system.
Complementary measures and practices

Development and operation of mobile apps to integrate the activity to the online marketplace.

Exclusionary and ineligible practices
Do No Significant Harm (DNSH)
Minimum Social Safeguards (MSS)

Notes

  1. 1. RA 7394 Consumer Act of the Philippines RA 8792 Electronic Commerce Act of 2000
  2. 2. Relevant laws and policies in the Philippines:- RA 9003 Ecological Solid Waste Management Act of 2000 - DAO 2001-34 Implementing Rules and Regulations of RA 9003 - RA 11898 Extended Producer Responsibility Act of 2022 - DAO 2023-02 Implementing Rules and Regulations of RA 11898