Henning, what does the principle of circularity mean for Telekom?
For us, circularity encompasses the entire value chain, from procurement and product design through use to take-back. We ask: What materials do we use? How durable, repairable, and upgradeable are our products? And how can we take back devices after use, reuse them, or recycle them to a high standard?
Does this also apply, for example, to smartphones or TV boxes that we sell to individual customers?
Yes. We take responsibility for the devices we sell and want to get as many of them back as possible. Of course, we also want to see greater commitment from manufacturers. But we can and do not want to evade this responsibility ourselves.
And that is why you developed the "Telco Circularity Score," or TCS for short?
Our goal is to operate networks and devices in an almost fully circular way by 2030. To do that, we first had to define what "fully circular" actually means and how we can measure progress and enable comparisons. Established standards exist for climate action. Emissions can be calculated, targets set, and companies compared. For circularity, however, we lacked a comparable benchmark. So we could neither say how circular we are overall nor measure our progress systematically. That is why we developed the TCS.
What does the score do differently?
It brings many individual measures together in one system. Many companies already have recycling, take-back, or reuse programs. What is often missing is an overarching approach. That is why we examined which levers are truly critical for a telecommunications company. After all, circularity is always industry-specific.
What exactly do you measure?
For example, how e-waste is handled—from smartphones and Routers to switches, mobile network antennas, and data center equipment. Our goal is for these devices to be neither landfilled nor incinerated, but fully recycled. Even more important, though, is using products for as long as possible. Every device that stays in use longer does not need to be replaced with a new one. This saves raw materials, energy, and emissions. That is why we also measure how many mobile and fixed-network devices are returned to us and how many of them are refurbished and put back into use.
The score is based on 14 metrics. How does it work?
Each metric has a baseline value and a target for 2030. If we fully meet all targets, the score is 10. At 50 percent target achievement, it would be 5. All metrics carry equal weight. We are currently conducting the “Null-Durchlauf” for the overall score. While we have been collecting some metrics, such as waste data, for some time, our holistic approach has also led us to define new measurements and add them to our data systems. This enables us to see for the first time where we stand overall and which areas still require action.
What does this mean for the business in practical terms?
Device take-back is a good example. In the past, the process largely ended with the sale. Today, we consider how we will get the device back later from the moment we sell it. This is creating new models. For example, with an early take-back offer, customers receive a price advantage when they purchase a device and return it after a specified period or keep it.
When you own your devices, you can have a particularly strong influence on how long they last.
Exactly. Long-term software and security support is an important requirement for using devices longer. EU regulations, which provide for longer update periods, also support us in this. In our fixed network, we provide many Routers and repeaters through a rental model. They are returned to us, refurbished, and can be used again. This reduces the need for new devices and saves resources, Emissions, and costs.
You also want to take the Circularity Score beyond Deutsche Telekom. How are other companies responding?
The feedback from Europe—from competitors such as Vodafone, Orange, Telefonica, and BT—has been very positive. Many companies are looking for a shared framework that brings individual measures together in a unified strategy. The vision is a European standard, and perhaps later a global one, that would enable us as an industry to speak to other industries with one voice.
But longer product use may not always be attractive to manufacturers.
Of course, this can affect production. But manufacturers also see that business models are changing. Services, software updates, take-back programs, and long-term customer relationships are becoming more important. The automotive industry shows how this can work. Manufacturers are increasingly integrating leasing, take-back programs, and sales of used vehicles into their business models.
So, is circularity more than a sustainability issue for you?
Absolutely. Circularity also strengthens supply chain resilience. The longer we use products and the more secondary raw materials remain in circulation, the less dependent we are on global risks and scarce raw materials. That is why the issue is also high on the agenda in Brussels. It is no longer just about sustainability, but also about European sovereignty and access to critical raw materials. Circularity protects resources and makes companies more resilient. We want to continue contributing to that.
