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Rewiring Telecom: Innovating with Circular Economy, Systems, and Resilience Thinking



Small (actually, not that small) premise: Good morning SOStainable people! I apologize for my absence but I've been facing demanding weeks in terms of workload for my master. But there's some good news (good but at the same time bad) - I'm done with the master's toughest course of the year! This is good as I will have more free time to dedicate to this blog (hopefully), but it's also a bad news because the course was one of the most useful courses I've ever had in my life. Indeed, the course tought us pivotal system-oriented frameworks on how to address sustainability at 360 degrees with the aim of fostering positive change. Other that learning these frameworks, I also had the occasion to put them into practice and connect them to fundamental sustainability theories like circular economy and Sustainability Innovation Management. This has been allowing me to really undertsnad that you need to think systemically and in terms of resilience of the broader systems that sorrounds us if we really want to start a successfull and impactful system-wide sustainability transition.

The post of this week is about the application of these frameworks when it comes to the telecom industry steps for reaching true sustainability. I hope you won't find it too difficult to read, and that, above all, you will like it and feel stimulated to get to know more about the subject! :)



1. Turning Progress into Purpose: Why Telecom Must Start Championing Sustainability 

Despite having revolutionized the way we communicate throughout the last centuries, the mobile telecommunications (telecom) industry is now facing urgent sustainability challenges (ING, 2023). Indeed, key strategic decisions that have shaped the past and continue to drive the current telecommunications revolution are now revealing their significant detrimental environmental consequences (Ramsay & Taaffe, 2021). These consequences extend beyond the environmental sphere, as they are deeply intertwined with complex social-ecological systems (SES) (Kennedy, 2024a). Folke describes a social-ecological system as an “integrated system of ecosystems and human society with reciprocal feedback and interdependence” (Folke et al., 2010, p. 3). As stressed by many experts nowadays, sustainability strategies of firms require a close examination to understand their strength in terms of their impact on SES (Kennedy, 2024b). Here is where systems thinking and resilience thinking come into play as two powerful frameworks that reveal the interconnected nature of business operations and the need for adaptive strategies for bringing tangible sustainable progress in the complex, dynamic, and highly interconnected world we live in. 

This essay delves into how systems and resilience thinking have a pivotal role in revolutionizing sustainability in the telecommunications industry through spotlighting the current sustainability initiatives of Samsung, an established giant with a historically unsustainable track record, and Fairphone, a young sustainability disruptor. Although these companies vary significantly in their business models and market focuses, they both demonstrate that embracing systems and resilience thinking is not just about mitigating environmental damage, but about reimagining strategic decision-making to drive long-term true sustainability, ensuring both business viability and positive social-ecological outcomes.

2. Beyond Reporting: Systems Thinking for Effective SOIs within Circular Economy

Senge describes systems thinking as “a discipline for seeing wholes … for seeing interrelationships rather than things, for seeing patterns of change rather than static ‘snapshots’” (Senge, 2006; p.68). Despite the innate power of systems thinking, firms have been recently giving excessive importance to practices like sustainability reporting, which do not significantly contribute to improved corporate sustainability performance (Doan & Sassen, 2020, p.1140). In this context, Sustainability-Oriented Innovation (SOI) goes beyond both compliance and mere "less bad" approaches to create positive, systemic impacts on the environment and society (Kennedy, 2024f). To facilitate the process behind coming up with impactful systemic SOIs, telecommunications companies must shift away from focusing on complying to isolated, short-term objectives and start systematically understanding how their operations affect, and are affected by, the broader socio-ecological systems (SES) within the framework of a circular economy (CE). 

The latter, as defined by the European Parliament “involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible” (European Parliament, 2023).

2.1 Fairphone's Approach to Counter E-Waste 

Fairphone’s commitment to sustainability tells a story that extends beyond practicing ethical sourcing and fair labor practices, but that it’s really about holistically addressing the systemic issues that are deeply rooted in electronic waste; with the latter expected to reach 110 million metric tons by 2050 from the 62 million of 2022 (Kleinmagd, 2024). 

For its part, Fairphone ensures that for every Fairphone 5 that they sell, they “ will compensate 100% of sales by responsibly recycling an equal amount in weight of electronic waste” (Fairphone, 2024). Specifically, “Fairphone 5 weighs 212 grams, so for each device sold, 212 grams of e-waste is collected” (Ballester Salvà, 2023). Considering that, according to Fairphone’s 2023 Impact Report, approximately 460,000 Fairphone 5 units were sold between the model's launch in August 2023 and December 2023, this logically equates to about 97.52 metric tons of e-waste collected by the end of December 2023 (see Appendix 1). While this may not seem like a massive impact when compared to the 2022’s 62 million ones, the initiative is a viable, promising, and impactful SOI in the long term. Indeed, the initiative embodies the circular economy strategy Extending Resource Value as it transforms waste into a valuable resource, hence tangibly contributing to closing the e-waste loop (Kennedy, 2024e). The company also adheres to the circular economy strategies Encourage Sufficiency and Extending Product Value by producing 100% e-waste neutral modular phones that customers can easily repair and upgrade over time for cheap (Fairphone, 2024). 

These two initiatives exemplify the powerful synergy of systems thinking and circular economy principles in action and their effectiveness in alleviating pressure on SES by reducing resource extraction, waste generation, and environmental degradation, ultimately contributing to the resilience and health of both ecosystems and the communities that depend on them. 

However, Fairphones’ impact report fails to address whether the modularity of Fairphone 5 leads to increased emissions from the production and transport of replacement parts. Regardless of the nature of this impact, this omission could raise concerns among sustainability experts and green consumers, who may become skeptical of the overall environmental impact and could hence risk overlooking the actual system-wide positive contributions Fairphone is making to counter e-waste.

3. Thriving Through Change: Resilience Thinking for a Sustainable Future

Resilience thinking extends the principles of systems thinking by emphasizing the capacity of systems to undertake three vital functions: adapt, absorb shocks, and transform in the face of disruptions (Kennedy, 2024d). 

The authors Walker and Salt describe resilience thinking as “an approach to managing natural resources that embraces human and natural systems as complex systems continually adapting through cycles of change” (Walker & Salt, 2006, p.10). This approach is extremely valuable for all businesses in every industry that, nowadays, aim to build sustainability robustness and thrive when facing uncertainty (Kennedy, 2024d). Resilient systems, as the two authors further explain, “have the capacity to change as the world changes while still maintaining their functionality” (Walker & Salt, 2006, p.12). These words should be interpreted by telecommunications companies as a call to action for moving beyond strategies that focus solely on maintaining stability to financially survive and develop the capacity to evolve over time (Kennedy, 2024d).

3.1 Samsung's Approach to Build Corporate and SES Resilience

Samsung’s goal of achieving carbon neutrality by 2050 is more than a mere disclosure from a historically non-sustainable tech giant. Rather, it marks the beginning of a transformative decision-making shift that tells an interesting story of both corporate and SES resilience. 

The beginning point of this shift is highlighted by Samsung’s 2023 sustainability report’s structure, where the emphasis on circularity takes center stage. Unlike previous reports that bundled circular economy efforts with unrelated initiatives, the 2023 report sharpens its comprehensive focus on device circularity organizing these efforts into well-defined, relevant subsections (Stryjak, 2023).

Advancing beyond paper, in 2022, Samsung managed to incorporate 99,000 tonnes of recycled resin into its plastic components, accounting for the 14% of all the plastic used in Samsung’s products and representing a remarkable 200% increase compared to 2021 (Samsung, 2024). If Samsung maintains such 200% yearly increase, by 2030 the percentage of plastic parts made from recycled resin would theoretically reach approximately 92% (see appendix 2), almost doubling the 50% objective the company set for 2030 (Samsung, 2024). To complement this, still in 2022, Samsung incorporated recycled materials in more device components than in any other previous Galaxy smartphone for its Galaxy S23 series (Samsung, 2024). Both of these initiatives exemplify SOI as they don’t just increase the company's corporate resilience by decreasing dependence on virgin materials and making the supply chain more adaptable to risks such as resource scarcity, but they also contribute to the resilience of broader social-ecological system (SES) by fostering the regeneration of ecosystems (resulting from decreased resource extraction and waste) and ensuring the long-term well-being of the communities that rely on these ecosystems. 

Samsung extends its multi-layered resilience efforts by restoring all water used in its operations to its natural state before discharge, focusing particularly on water-stressed regions where industrial processes can exacerbate water depletion and pollution (Samsung, 2024). In 2019, advanced water recycling technologies allowed Samsung’s Hwaseong Campus in Korea to conserve approximately 274.7 million gallons of water, enough to provide for around 200,000 people in Korea for an entire month (Samsung, 2020). While this percentage is just the 0.004% of the 50 million South Korean inhabitants in 2019 (O'Neill, 2024), the initiative holds substantial potential for long-term scalability if paired with synthetic systems thinking. Through this approach, Samsung can better understand the interconnected dynamics of water management, industrial sustainability, and environmental preservation; determining, hence, whether its water conservation activities are suitable for its local, regional and global social-ecological system (Kennedy, 2024c).

However, there’s a risk that all of Samsung’s current efforts to enhance corporate and SES resilience may be seen as weak due to shortcomings in its sustainability accounting. In 2023, Samsung reduced 10 million tonnes of carbon from its Scope 1 and 2 emissions, marking a 59% improvement from 2021 (Samsung, 2024). However, this progress could appear superficial and limited, as it lacks benchmarks both within and across industries, aside from the overarching global goal of achieving net zero by 2050. Also, the emphasis placed on this data in the sustainability report may also raise concerns about the non-substitutability of natural capital, the principle that certain environmental losses cannot simply be offset by improvements in other areas, such as emissions cuts (Kennedy, 2024a). Without considering these two shortcomings, Samsung’s emission reductions may convey a narrow and incomplete view of sustainability, undermining the true impact of their resilience and circularity-based efforts.

As this essay reaches its conclusion, the following key insight becomes clear: real, impactful change in the telecommunications industry, as for every industry, requires a deep rethinking of how companies view their role within society and the environment. 

By applying systems and resilience thinking and integrating them with circular economy strategies, Fairphone can continue coming up with revolutionary SOIs aimed at challenging the throwaway culture that characterizes both the tech industry and our consumerist society. Besides addressing the need for greater clarity regarding reporting areas such as the emissions linked to the modularity of their phone models, Fairphone’s true future potential lies in scaling its impact by leveraging consumers' understanding and perceptions of the lifecycle and sustainability of electronic devices. This can be achieved at a global scale through collaborating with the giants of the industry for the creation of innovative hands-on workshops that cultivate global networks of individuals who are committed to making more environmentally responsible choices. By influencing consumer behavior and showing the industry that people are willing and able to embrace more sustainable tech practices, Fairphone can ultimately trigger broader regulatory changes that push the entire sector toward circularity.

Samsung, on the other hand, is making significant progress in circularity through corporate and SES resilience-driven initiatives aimed at closing the loop on e-waste and moving towards carbon neutrality. Since these initiatives are currently limited to specific product lines and regions, the company’s long-term success will depend on its ability to leverage its significant scale and influence to develop SOIs that drive both sustainable systemic transformation and multi-dimensional resilience. Equally important for its current resilience-driven impacts to be clearly recognized is the clear communication of these efforts through an refined approach to sustainability accounting that, besides improving the comparability of its efforts within the telecom and across industries, should put more emphasis on the impact of the corporation’s SES resilience-related initiatives.

To conclude, it is crucial for all companies in the Telecom Industry to start to shape their current and future sustainability strategies through adopting both systems thinking and resilience thinking; integrating these approaches with circular economy principles and, above all, with a mindset focused on sustainability-oriented innovation. This will allow the industry as a whole to move beyond viewing sustainability as a mere compliance obligation and instead harness it as a powerful strategic advantage to not only strengthen its sectoral resilience but also enhance the resilience of surrounding social-ecological systems, fostering a future where the industry, ecosystems and human society thrive in harmony, reinforcing one another's success.










5. Appendix 1: Fairphone’s Electronic Waste Collected from September 2023 to December 2023

Key Assumption:

Fairphone actually maintains its promise to compensate 100% of sales by responsibly recycling an equal amount in weight of electronic waste

Data: 

  • Fairphone 5 weight per unit: 212 grams

  • Number of units sold: 460,000 units

Procedure:

Formula:

  • Total e-waste collected in grams: Fairphone 5 weight per unit x Number of units sold

Calculations:

  • Total e-waste collected in grams: 212 grams/unit x 460,000 units = 97,520,000 grams

  • From grams to metric tons: 97,520,000 grams / 1,000,000 = 97.52 metric tons

Result:

Fairphone collected approximately 97.52 metric tons of electronic waste from the sale of 460,000 Fairphone 5 units from September 2023 to December 2023. 




















6. Appendix 2: Samsung’s Projected Recycled Plastic Percentage by 2030

Key Assumption:

The percentage of recycled plastic parts triples each year (200% growth per year) as it happened from 2021 to 2022.

Data: 

  • Initial percentage in 2022: 14% of plastic parts made from recycled materials.

  • Growth rate: 200% increase (equivalent to multiplying the percentage by 3 each year).

  • Time period: 8 years (from 2022 to 2030).

Procedure:

Formula: 

  • Percentage in 2030 = Initial percentage × (Growth rate)Years

Calculations:

  • Percentage in 2030 = 14% × (3)8  = 92%

Result:

The projected percentage of recycled plastic parts by 2030 would be 92%.














7. References

Doan, M. H., & Sassen, R. The relationship between environmental performance and environmental disclosure: A meta‐analysis. Journal of Industrial Ecology.

European Parliament. (2023). Circular economy: definition, importance and benefits | Topics | European Parliament. European Parliament. https://www.europarl.europa.eu/topics/en/article/20151201STO05603/circular-economy-definition-importance-and-benefits

Fairphone. (2024). Fairphone 5 Tagline Explained. Fairphone. Retrieved September 22, 2024, from https://www.fairphone.com/it/legal/fairphone-5-tagline-explained/

Folke, C., Carpenter, S. R., Walker, B., Scheffer, M., Chapin, T., & Rockström, J. (2010). Resilience thinking: integrating resilience, adaptability and transformability. Ecology and society, 15(4). 

ING. (2023). How telecoms is rising to the sustainability challenge. ING Wholesale Banking. https://www.ingwb.com/progress/insights-sustainable-transformation/how-telecoms-is-rising-to-the-sustainability-challenge

Kennedy, S. (2024a) Sustainable Development 1. Lecture at RSM on 02 Sept 2024. 

Kennedy, S. (2024b) Sustainable Development 2. Lecture at RSM on 03 Sept 2024. 

Kennedy, S. (2024c) Systems Thinking. Lecture at RSM on 10 Sept 2024. 

Kennedy, S. (2024d) Resilience Thinking. Lecture at RSM on 11 Sept 2024. 

Kennedy, S. (2024e) Circular Economy (Business Models). Lecture at RSM on 17 Sept 2024. 

Kennedy, S. (2024f) Sustainability Oriented Innovation. Lecture at RSM on 18 Sept 2024. 

Kleinmagd, T. (2024). Can we outrace the e-waste problem? Yes, we can. Fairphone. https://www.fairphone.com/en/2024/06/20/can-we-outrace-the-e-waste-problem-yes-we-can/

O'Neill, A. (2024). South Korea: total population 2019-2029. Statista. https://www.statista.com/statistics/263747/total-population-in-south-korea/

Ramsay, D., & Taaffe, J. (2021). Can the telecoms industry power down its impact on the environment? TM Forum Inform. https://inform.tmforum.org/features-and-opinion/can-the-telecoms-industry-power-down-its-impact-on-the-environment

Samsung. (2020). Samsung Semiconductor Site Earns Industry's First Sustainable Water Use Certification. Samsung Semiconductor. Retrieved September 24, 2024, from https://semiconductor.samsung.com/news-events/news/samsung-semiconductor-site-earns-industrys-first-sustainable-water-use-certification/

Samsung. (2024). Samsung Electronics Sustainability Report 2023. Samsung. https://www.samsung.com/global/sustainability/media/pdf/Samsung_Electronics_Sustainability_Report_2023_ENG.pdf

Senge, P. (2006). The fifth discipline: The art and practice of organizational learning. New York.

Stryjak, J. (2023). Samsung Sustainability Report: Good Progress Made, a Bit More Needed - Counterpoint. Counterpoint Research. https://www.counterpointresearch.com/insights/samsung-sustainability-report/

Walker, B., & Salt, D. (2006). Resilience thinking: sustaining ecosystems and people in a changing world. Island press. 




 
 
 

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