What type of specifications can encourage environmental innovation in products and services?

Selecting output specifications encourages environmental innovation in products and services because they focus on the results or performance of the product rather than the specific inputs or processes used to achieve those results. By emphasizing the desired outcomes, such as reduced emissions, energy efficiency, or increased recyclability, suppliers have the flexibility to explore and adopt innovative methods, materials, and technologies that can help meet these goals.

Output specifications inspire creativity and problem-solving, allowing for a range of approaches that might utilize newer, more sustainable practices. As suppliers are motivated to meet these performance criteria, they are also incentivized to improve their practices and processes, leading to more environmentally friendly solutions in their offerings. This contrasts with material, input, and compliance specifications, which typically constrain options by specifying exact materials, processes, or adherence to existing regulations, leaving less room for innovation.