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Products-as-a-service will help transition to a circular ICT sector

3 July 2018

A new report on "The Circular Phone" has been published, highlighting legal, operational and financial solutions - including strategic procurement - which can help unlock the potential of 'product as a service' models in the ICT sector.

'Product as a service' models are a key solution to achieving more circular value chains. They offer users of ICT services the option to pay for the use of their mobile phones while producers retain ownership of the product itself, thereby encouraging the delivery of high-quality, reusable and recyclable products.

The report, published by Circle Economy and the Sustainable Finance Lab, highlights Fairphone as a market leader in circular smart phone production due to its modular and repairable design, and fair and ethical sourcing. By 'closing the loop' and offering products as a service, companies like Fairphone can further decrease their environmental impact while offering improved performance to users.

The report concludes that amongst other solutions, strategic procurement of service contracts for ICT products could help overcome barriers and support innovative new business models. It underlines the importance of purchaser – supplier engagement and collaboration to make this model a success, as well as provides a template circular service contract.

For more information on ICT as a service models read the full report here.