What is the circular economy?
The circular economy could be defined as an economic model that aims to minimize the waste generated while aiming for sustainable use of natural resources through the development of smarter products that can have a longer lifespan and higher recycling rates.
In contrast to this circular economy is the so-called “linear economy”, which is based on a model that extracts raw materials from nature, creates resources from them and then disposes of them as waste.
So one could say that the circular economy aims for economic growth that respects the boundaries of the planet with a more efficient and sustainable economic model.
The relevance of this circular economy is supported by data such as the fact that to meet current consumption needs in 2050, the equivalent of three planets would be needed for production.
A reality that becomes more tangible through numbers. According to UN data, in 2019 alone, “approximately 13% of food intended for human consumption was lost after harvest, and another 17% was wasted in households, food services and retail.”
If you look at the amount of electrical and electronic waste, 7.3 kg was generated per capita in the same year. Furthermore, they are generally not handled safely, resulting in harm to both our health and the environment.
The five Rs of the circular economy
With the strategic goal of achieving net zero emissions by 2040 and neutralizing emissions from its main operations by 2025, Telefónica also aims to be a zero waste company by 2030 through the five R's of the circular economy:
- Redesign. Rethink the development of a product incorporating ecological design criteria that make it possible to reduce its environmental impact through the use of recycled materials or increase its durability, repairability and energy efficiency. Our 2023 Consolidated Annual Report states: “Introducing environmental criteria in the design of equipment helps us improve the quality and efficiency of products by taking into account concepts such as repairability and recyclability.” This allows us to have longer-lasting and more environmentally friendly equipment, by reducing the consumption of raw materials, energy and emissions related to manufacturing. An example of this is that by reusing and/or repairing fixed devices in our customers' homes, we will avoid purchasing 3.7 million new devices in 2023.”
- To reduce. There is no better waste than that which is not produced. Telefónica therefore advocates both extending the useful life of devices and systems and avoiding programmed obsolescence.
- reuse. In line with the previous idea, Telefónica also aims to extend the above-mentioned useful life of the devices through their reuse. This enabled almost five million electronic devices to be reused, avoiding emissions of 381,569 tonnes of CO2. The circular economy is also integrated into the network transformation, with many devices given a new lifespan in the company's network. Thanks to the MAIA digital platform, each operator can visualize the equipment available and connect with others in the group to promote reuse.
- repair. The company offers a used phone service that returns to the market in the best condition after a refurbishment process following a comprehensive process of repairs, checks and tests. Of the 102 tons of cell phones collected, 99.8% were reused and recycled.
- Recycle. When there is no more capacity to reuse, there is no better option than recycling. Each device has a variety of metals that can be used as resources in new products. In 2023, Telefónica recycled 97% of its total waste.
Telefónica's climate protection plan
In its climate action plan, Telefónica is blunt about climate change: “Undoubtedly one of the most important challenges we as a society are currently facing.”
The operator is fully aware of its role as a driver of change in the economy and society through digital transformation as well as big data and Internet of Things (IoT) services as solutions to reduce emissions.
But Telefónica must lead by example and reduce both its own emissions and those of its value chain. Therefore, in 2020, the company increased its climate ambition and announced the above new energy and climate targets for 2025, 2030 and 2040, aligned with the 1.5 degree scenario of the Paris Agreement and validated by the SBTi initiative.
To ensure that these goals are achieved, the climate action plan is integrated into the company's governance model and “provides for the quantification of emissions, the implementation of concrete measures with verifiable indicators, and the establishment of responsibilities for monitoring and accountability in the organization.”
How the circular economy helps us fight climate change
Now that we know exactly what the circular economy is and how it can be practically applied, let's take a look at how it can help us combat climate change.
In fact, the United Nations considers the circular economy to be “essential” to combat climate change.
The extraction and use of materials is responsible for 70% of greenhouse gas emissions, a major cause of global warming. This number could be reduced to 40% by 2050 through more efficient and circular use of just four key industrial materials: cement, steel, plastic and aluminum.
Other specific data offered on the United Nations website on the benefits of the circular economy in the face of climate change, which gives us an idea of how relevant it is, is that the reusable packaging market is expected to grow from $37 billion in 2018 to 59 billion in 2026 or that the second-hand clothing market will double the size of the fast fashion market by 2029.
Diploma
The fight against climate change is a task that affects us all and for which different initiatives can be developed.
One of the tools to combat this problem is undoubtedly the circular economy, a model that advocates redesign, reduction, reuse, repair and ultimately recycling in order to reduce the amount of waste generated and its impact on the environment.
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