Woman lying relaxed on the living room floor looking at her cell phone.

Circular economy

We are increasingly aligning aspects of our business activities with the principles of the circular economy.

Rethinking design. Less material, more circularity

By 2030, we aim to achieve the target of “Zero ICT Waste” by working towards reusing or recycling 100% of the information and communication technology (ICT) waste generated. The central approaches of our strategy are reducing resource input, including through the use of materials with recycled content and integrating circular economy principles into the design process. We also minimise resource outputs through the take-back and reuse of hardware, thereby extending the lifespan of devices. Furthermore, we intend to embed circular economy criteria throughout the supply chain to promote the use of secondary materials and reduce the environmental impact of manufacturing.

Policies

We have established principles for resource conservation and waste prevention

With our Environment and Energy Policy, we have committed ourselves to conserving resources and promoting reuse and recycling. This policy is anchored in our environmental management system according to ISO 14001. Our internal Waste Management Policy governs the avoidance, separation, and recovery of waste in the relevant business processes along the value chain. This is complemented by the Supply Chain Sustainability Policy (SCSP), which defines sustainability requirements for suppliers and promotes the integration of circularity principles.

Targets

We had the following targets by the end of 2025:

To increase the share of our business customers’ digital products and services that are awarded the Eco Smart seal to at least 60%.
To take back 80% of used devices (refurbished routers) from customers and return them to the recycling loop.
To increase the recycling rate for network waste to 98%.

As part of the Telefónica, S.A. Group, by 2030, we aim to

become a “Zero ICT Waste Company”, meaning reuse or recycle 100% of the ICT waste generated in business operations.

Performance

Results of our circular approaches

63% of our digital products and services already carry the Eco Smart Label (2024: 63%).
In 2025, the share of refurbished routers was 68% (2024: 81%), which was below the target. This was due to a reduced return rate of routers to the leasing partner under the existing contractual agreement.
99.9% of network equipment is already reused or recycled (2024: 99.7%).

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Key figures

All key indicators and definitions can be found in our interactive KPI tool.

To the KPI tool

Actions

More recycling, fewer raw materials

Increased use of recycled and more environmentally friendly materials in products and packaging: One example is the new energy-efficient HomeBox4 router, which has a significantly increased recycled content and will be available from 2026. Furthermore, the device is designed to be easier to repair – see also the section “Business value”.

We also design our packaging to be resource-efficient, for example, by using half SIM cards and shipping boxes with reduced plastic content. In this way, we reduce the need for new raw materials and the amount of material used in the design process, thus reducing waste.

Eco Smart criteria: 63.0% of our products are developed according to Eco Smart criteria, which focus on environmental responsibility and resource conservation:

low energy consumption during operation
high recyclability of the hardware components,
long service life due to update capability and repairability,
transparent CO₂ balance sheet, which can be viewed via digital platforms.

The initial assessment of the product groups according to the Eco Smart criteria was carried out by the independent certification company AENOR INTERNACIONAL, S.A.U. in accordance with the requirements of the standard EN ISO/IEC 17029:2019. Products and services bearing the Eco Smart label meet the defined, externally verified criteria.

Using devices for longer instead of buying new ones: To conserve resources, we rely on a circular economy: Through leasing and subscription models as well as trade-in programmes like our “O₂ Business Device-as-a-Service” for business customers, we take back used devices, refurbish them, and either reintegrate them into the cycle or recycle them professionally. At the same time, we help to avoid rising costs and longer delivery times that can arise from raw material shortages or geopolitical conflicts.

Bringing used devices back into circulation: Since 2021, our customers have been able to sell used devices to an external partner via the O₂ mobile phone buy-back programme. After receiving and inspecting the devices, the partner refurbishes them and puts them back into circulation.

Business value

Added value through circular economy principles

With the HomeBox4 router, we are setting a clear example for a circular economy and more resource-efficient operation of digital infrastructure. The device is durable, repairable, and recyclable, and bears the TÜV Rheinland “Green Product Mark” as independent proof of defined sustainability criteria. We already focus on efficient material use and reducing the CO₂ footprint during the design process. This offers clear advantages for our business customers:

Cost-saving potential: Longer service life and the possibility of refurbishment can reduce the total cost of ownership (TCO) for acquisition and operation. Companies need to purchase new hardware less frequently.
Supporting ESG targets: The use of hardware based on circular principles can help reduce the ecological footprint and support companies in achieving their own sustainability goals.
Strengthening security of supply: In times of geopolitical tensions and raw material shortages, the reuse of equipment can reduce the risk of supply bottlenecks and long waiting times.
Innovative installation service: For business customers, we also offer a free installation service when activating new business plans. This ensures that companies are reliably online from day one – without any additional effort.

Next steps

On the road to zero waste

By 2030, we aim to achieve the target of “Zero ICT Waste”. This means that components of our digital infrastructure should be kept in circulation as much as possible, for example, through reuse or recycling, or they should be replaced by suitable alternatives.