Prioritizing Sustainability: Insights from Circular Markets 2025

It was a pleasure to host the Prioritizing Sustainability panel at CCS Insight’s inaugural Circular Markets event in Paris earlier this month. The day saw more than 180 delegates from 90 companies convene for insightful discussions on sustainability, supply chain automation and circular business models.

I was joined by Augustin Becquet, CEO of Recommerce; Stefan Nilsson, Chief Impact Offer and Chief Sustainability Officer (interim) at Foxway; Dominique Rousseau, Director of Devices at Vodafone; and Fabian Sempf, Senior Vice President of Strategic Transformation and Digital Initiatives at Mercantile. The discussion focused on the opportunities for more-sustainable practices in selling and distributing mobile phones.

I first asked about the role mobile devices can play in helping operators achieve challenging net-zero targets, and the panel was unanimous that phone take-back and refurbishment schemes present a major opportunity. Mr Becquet pointed out that each reused smartphone saves 50 kg of carbon dioxide and prevents the extraction of 154 kg of raw materials. Mr Nilsson, meanwhile, urged the industry to also consider long-term commitments after 2030.

Next, I raised the subject of regulation. There was broad consensus that more needs to be done to address the imbalance of supply and demand. This is a major challenge for the second-hand market in Europe, where CCS Insight data shows that the attachment rate — or the share of devices traded-in compared with the number of primary sales — is only 10% to 12%. In North America, it’s closer to 55% or 60%.

Mr Sempf pointed out that, although Europe is currently a net importer of phones from the US and Asia, it needs to become self-sufficient. He said that to do this, more-attractive offers are needed to encourage people to return their old devices. Mr Becquet agreed, noting that 80% of a smartphone’s environmental impact happens during production, yet millions of devices remain unused in drawers, emphasizing the need for effective trade-in programmes. The comments put into context a statistic from Vodafone UK, indicating that over 200 million unused devices are sitting idle in UK homes, equivalent to three per household.

Mr Rousseau mentioned an industry eco-rating scheme for mobile devices, initially launched by five leading operators — including Vodafone — in 2021. The Eco Rating Initiative aims to help consumers identify the most sustainable mobile phones. However, not all manufacturers are on board — Apple is the most notable absentee — making it difficult to draw fair comparisons. A discussion ensued as to whether regulatory intervention could be used to improve the consistency and accuracy of information about sustainability for customers.

With over 700 environmental, social and governance regulations in the EU alone, Mr Nilsson warned about over-complexity. He said initiatives like the EU’s Right to Repair indicate encouraging progress but recommended a common industry framework to focus industry efforts on device longevity.

I then changed tack to ask about customers’ hesitance at buying refurbished devices. In doing so, I shared some data from CCS Insight’s recent survey of mobile buying in the UK, showing that although just over half of people would consider purchasing a refurbished mobile phone — including 63% of 16-to-24-year-olds — only about 6% actually own one.

Mr Sempf highlighted the importance of quality control and transparency to help people become better informed. Most customers demand a phone in “flawless” condition and with a good battery, he said, before adding that some are willing to accept a few scratches in return for a lower price.

He proposed three ways in which the industry can make choosing a refurbished mobile phone more attractive: address the perception challenge in which the actual quality is often far higher than people expect; ensure bundles and subsidies for used phones are at least on a par with those of brand-new offerings; and provide more services to customers, such as copying data from an old phone to a new one.

Mr Nilsson said that the industry needs to unite on quality standards, educate consumers on the benefits of sustainability and overcome the stigma attached to owning a refurbished device. On the latter, however, he pointed out that the mind-set in Nordic markets has already shifted. There, it’s “cool” to take a second-hand device, he explained.

My final question evoked a passionate response. I wanted to understand panellists’ views on the GSMA’s target that, by 2030, used mobile devices collected by trade-in schemes represent at least 20% of new mobile devices distributed to customers.

Mr Nilsson said that although the target is a start, the industry should aim higher. Mr Becquet agreed, arguing that it isn’t ambitious enough and that more-demanding goals are needed to promote a stronger European circular economy. When I asked what would be a better target, Mr Becquet suggested that with 700 million unused smartphones in Europe, the industry should aim for 30%.

I really enjoyed the discussion and would like to thank my panellists for their thoughtful and interesting contributions. I look forward to continuing the conversation. Get in touch to hear more about our research on second-hand devices.