Circular economy: holistic approach along the entire value chain

62 million tons of e-waste were produced worldwide in 2022 across all industries ^a – enough to fill 1.55 million 40-ton trucks. This shows that we are too wasteful with our planet’s raw materials. That is why we at Deutsche Telekom have set ourselves an ambitious goal in Europe by 2030: We want to ensure that all IT/network technology used by Deutsche Telekom and a large proportion of the end devices put into circulation are recyclable. To achieve this goal, we look at the entire life cycle from product development to disposal.

We also deal with the topic of circular economy in detail in our Sustainability Statement 2024.

Milestones achieved, ongoing projects and goals

For more than 20 years, we have been dealing with the question of how we can recover the valuable resources from end devices and network technology and avoid electronic waste. Today, we take a holistic approach to the circular economy along our entire value chain.

Our approach: measuring circular economy performance holistically

By 2030, the entire IT/network technology we use and a large proportion of the end devices in circulation are to be recyclable. This includes the entire network technology, a large part of our own products (with T-Brand) and a large part of the mobile devices we sell.

To this end, we are implementing comprehensive measures along our entire value chain. We divide these into four dimensions: “avoidance”, “preparation for reuse”, “collection and recycling” and “disposal”.

Our most important levers

Avoidance:

even during product design, we pay attention to the selection of materials, recyclability, packaging and shipping options in order to conserve resources.

Preparation for reuse:

we refurbish used end devices and network technology to enable them to be used again.

Collection and recycling:

we collect devices that are no longer in use and recycle them professionally. Net technology is also recycled.

Disposal:

we operate a systematic waste management system to avoid waste and recycle waste wherever possible.

Making progress measurable: the Telekom Circularity Score

From 2025 onwards, we want to make our holistic circular economy approach measurable throughout Europe through an overarching set of KPIs: the Telekom Circularity Score (TCS). It is to be introduced successively and help us to steer our measures and measure progress transparently. In doing so, it takes into account the specific requirements of the ICT industry.

In addition to KPIs that have been established over many years, the TCS will contain new metrics that we will test and gradually introduce. It is planned that the TCS will also include a specific KPI for the circular material use rate for net technology, which will take into account the proportion of reused or refurbished net technology as well as the proportion of circular materials in new procurements. This allows us to measure our progress in resource-saving grid expansion.

An important part of our approach is also to support our suppliers in reducing plastic, paper and packaging as well as in the use of recycled materials.

In addition, we implement measures at our workplaces – for example in office buildings, Telekom shops or data centers. In Germany, for example, 100 % of workplace devices (laptops, monitors, etc.) are collected after their useful life, refurbished and returned to the cycle as used devices.

Deutsche Telekom Circularity Score

Avoidance: from product development to packaging

When designing our products, we attach particular importance to sustainable features. Our holistic approach includes our telecommunications services, the corresponding end devices including plastic-free packaging, and low-CO₂ shipping to customers. Our product developers are subject to the “Sustainability by Design” guidelines, which include specifications on device development, packaging, and safe ingredients. Detailed information on how we design environmentally friendly products can be found here in the report under Environmentally friendly products and services.

We have set out our requirements for packaging in a packaging guideline. Since 2022, all new Telekom products (with T-brand) in Germany and Europe have been sustainably packaged: We use recyclable and biodegradable materials, recycled paper and non-toxic labels. In addition, we do not use single-use plastic at all.

By consistently applying the Packaging Directive, we were able to increase the share of sustainably packaged fixed-line devices to 99 % Group-wide in 2024 ^b.

We also actively hold our suppliers accountable: the packaging of smartphones that we purchase from them must comply with the requirements of our packaging policy. We monitor compliance through regular factory audits. In the reporting year, we were not aware of any violations of the Packaging Directive by suppliers.

We also want to optimize our shipping packaging. Since 2021, we have been doing without wrapping plastic in technical logistics in Germany: we need about 4,700 kilograms less plastic per year. In addition, since 2020, we have been saving 50 tons of additional paper annually as filling material through a cardboard scrap/shredding machine.

From old to new: prototype of the NeoCircuit router

In cooperation with an industry consortium consisting of Citronics, Evonik, Fairphone, Infineon, MaxLinear, Sagemcom and the INC Innovation Center, we have developed an innovative approach to use electronic components from old devices for the production of new devices. The first prototype, the NeoCircuit router, is already fully functional.

For the router, central electronic components such as the motherboard, processor and memory chips from old smartphones such as the Fairphone 2, DSL and USB plugs as well as cables and power plugs are recycled. In the first expansion stage, the prototype achieves a degree of circularity of about 70 % of the electronics, thus reducing the CO₂ footprint by about 50 %. The housing is also made of 100 % recycled plastic.

Preparation for reuse: new life thanks to reprocessing

Not all devices that are replaced with a new model have already reached the end of their service life – this applies to end devices such as smartphones as well as to network technology. We want to give these devices a new life and are implementing various measures to achieve this. Among other things, we sell “refurbished”, i.e. refurbished mobile phones, offer rental models for fixed-line devices and sell used network technology on our own online marketplace.

Mobile phones: “refurbished” is in demand

For mobile phones, we work with buy-back and refurbishment service providers to take back, refurbish and refurbish devices. In Germany and Austria, we offer refurbished mobile phones that are marked with our #GreenMagenta label. Our customers can also buy used smartphones and other devices in several national companies, for example in Greece, Croatia, Poland and Hungary. In Greece, the OTE Group has set up a process for the refurbishment of communication terminal equipment (e.g. routers, network sockets and TV receivers). With an annual capacity of over 270,000 devices, this project meets the growing demand for used equipment. In Hungary, almost 300 refurbished mobile phones are sold every week.

Landline devices: renting instead of buying

For fixed-network terminals, all European national companies mainly offer rental models so that they can be reused or professionally recycled after replacement.

Our progress in 2024 in Germany

• Around 1.35 million customer devices such as routers and TV set-top boxes have been refurbished for reuse in Germany.
• Around 1.05 million refurbished fixed-line devices sold or rented, of which 390,000 were offered as service replacement devices
• Approximately 630,000 non-reusable devices professionally recycled.

A trading platform for discarded network technology

In Germany, we have pushed ahead with the conversion of the mobile network from 4G to 5G in recent years. This results in discarded technology, which we sell on the “Marketplace Alttechnik”. It is marketed worldwide through a partner. The primary goal is to continue using the old technology. If the technology is damaged or does not find buyers after two years, it is recycled. In 2024, 314 tons of old technology were sold in this way, twice as much as in the previous year. 215 tons were recycled and a further 183 tons were in stock at the end of the year. In order to promote the reuse of technology within Deutsche Telekom, we are planning to introduce a cross-border internal platform.

Collection & Recycling: take-back in shops and via collection campaigns

Many drawers contain discarded or defective mobile phones, in Germany alone there are estimated to be around 200 million devices. They contain valuable raw materials such as gold, silver, copper, platinum or palladium. The take-back of equipment that is no longer needed is therefore one of the central measures when it comes to our contribution to the circular economy.

We want to create incentives to hand in discarded mobile phones so that they can be recycled properly and valuable raw materials can be recovered. In 2024, we set up new, specially designed collection boxes in our shops to make it as easy as possible for our customers to return their old devices.

In addition, we have been running regular mobile phone collection campaigns for many years. For example, in 2024 we launched a joint collection campaign with the German Football Association (DFB) for the European Football Championship. For each mobile phone collected, 50 cents were donated to “HateAid”.

Each collected device is first checked to see whether it can still be used or recycled. Only devices that are not suitable for a “second life” are recycled.

ESG KPI “Take-back of mobile devices” (including mobile phones)

In 2024, more than 9 million mobile phones were taken back ^c across the Group. The ESG KPI “Take-back of mobile devices” relates the “number of mobile devices taken back” to the “number of devices put into circulation”. In 2024, the share was 29.4 %.

ESG KPI „Take Back Mobile Devices”

(and Take Back Mobile Phones from 2021) in %

Take Back Mobile Devices

Current International Collection Projects

• In Germany, we operate the mobile phone collection center in cooperation with Foxway to collect used mobile phones. In 2024, we were able to collect over 110,000 old devices via the take-back system, which has been awarded the state “Blue Angel” ecolabel. For every device returned, we donate money to local environmental and social projects. We also offer our customers the opportunity to sell used devices via our “mobile phone purchase” to our partner Assurant, who uses them for refurbishment.
• In Poland, T‑Mobile Polska launched the initiative “Działamy w trosce o nature” (“We act with respect for nature”) in 2024. Over 2 tons of discarded smartphones were collected through a nationwide school competition, which corresponds to about 15,000 devices. A Christmas campaign encouraged customers to recycle their old mobile phones.
• In Hungary, Magyar Telekom and Hello Nonprofit have launched a competition for Hungarian non-profit organizations in 2024. The jury chose the program “Passzold Vissza Tesó!” (“Give it back, brother”), which has been collecting unused cell phones, GPS devices, tablets and accessories since 2018. Since the beginning of the program, the organization has collected 14,000–18,000 devices annually, a total of 8 tons of e-waste.
• In Croatia, Hrvatski Telekom operates the communication platform “Poziv koji ne propuštaš” (“The call you have to answer”). Customers are called upon to hand in their devices to Telekom shops throughout Croatia. In 2024, almost 30,000 smartphones could be taken back.

ESG KPI “Redemption CPEs” (fixed network)

We also take back modems, routers, repeaters and TV receivers (so-called Customer Premises Equipment, CPEs). Since 2021, we have been recording the ESG KPI “Take-back CPEs” and the number of refurbished CPEs. In 2024, more than 4.6 million CPEs were taken back across the Group, 44 % of which were refurbished.

Our goal is to further optimize the process of take-back and reprocessing. In this way, we want to ensure that all returned CPEs are either refurbished, stored for future refurbishment or recycled. The implementation of corresponding measures has already begun.

ESG KPI „Take Back CPEs”

Reclaimed copper cables

For decades, telephone lines consisted largely of copper cables, which are now being successively replaced by fiber optic expansion. In 2024, we pulled over 1,430 tons of copper cable from cable duct systems in Germany or recovered them from assembly and cable residues. Certified waste management companies process them in an environmentally friendly manner. Up to 90 % of the material is then returned to the raw material market.

Copper cable recovered since 2018

in thousand tons

Disposal: avoiding waste

We want to avoid waste as much as possible and recycle any waste that accumulates.

As part of our European resource efficiency strategy, in 2021 we set the Europe-wide goal of “Zero Waste to Landfill”: This means that we dispose of or recycle 100 % of electronic waste properly, preventing it from ending up in landfill. We were already able to achieve this goal at the end of 2022.

In order to ensure controlled handling of electronic waste, we pursue various approaches. The waste pyramid provides us with the methodological framework: waste prevention comes first, followed by reuse, recycling and other recovery (e.g. energetic) – so that in the end only those materials remain for disposal that cannot be treated at the other levels of the pyramid.

Our waste management is uniformly defined throughout the Group (excluding T‑Mobile US) in accordance with the “International Framework for Waste Management”. On this basis, the national companies are responsible for setting measurable goals and monitoring their implementation. This enables them to respond flexibly to country- and company-specific conditions.

You can find out more about waste management and our approach and strategy in our audited

Sutainability Statment in the Annual Report 2024

Looking ahead

To make our devices and technologies circular by 2030, we need to look at our entire value chain. That is why our focus in 2025 will be primarily on the introduction of our Telekom Circularity Score. In this way, we create the basis for measuring our progress at the various stages of the value chain and managing our measures holistically.

Deep Dive for experts

Management & Frameworks

With our management system for health, occupational health and safety and environmental protection, we are committed to continuous improvement. It has been recertified according to international standards such as ISO 14001. Our environmental guideline summarizes key ecological commitments, e.g. on the circular economy and biodiversity.

The Sustainability Statement in the Annual Report 2024 provides further information on the topics of circular economy and waste management.

Relevant standards

• Global Reporting Initiative (GRI)
• GRI 301-3 (Materials)
• GRI 306 3-3 (Waste)
• GRI 306-1 (Waste)
• GRI 306-2 (Waste)
• GRI 306-3 (Waste)
• GRI 306-4 (Waste)
• GRI 306-5 (Waste)
• Sustainability Accounting Standards Board (SASB)
• TC-TL-440a.1 (Management of products at the end of their useful life)
• GSM Association (GSMA) Indicators for Telecom Providers
• GSMA-ENV-04 (Circularity)
• GSMA-ENV-05 (Waste)

Waste management and recycling

We are constantly developing our Group-wide set of key performance indicators for waste management and, in addition to the amount of waste generated, we also collect figures on the recycling of technical and hazardous waste.

Waste management and recycling ^a

Waste generation (including e-waste)

As part of our waste management, we transparently map our waste volume. In 2021, we expanded our set of key figures on technical waste so that for the first time it is possible to differentiate between electronic waste (e-waste), cable waste and other technical waste. We have not set a Group-wide target for the reduction of hazardous and non-hazardous waste. Rather, the national companies are guided by our “International Framework for Waste Management” adopted in 2013; on this basis, they develop or update their own waste strategies. To this end, they have also set themselves corresponding goals: the focus is on reducing hazardous waste – such as lead batteries. The Group-wide amount of waste fell by 18 % compared to 2023. In our interactive key figure tool for company comparison, we provide detailed information on the key figures of the individual companies.

Waste generation Deutsche Telekom Group

in t

Waste generation 2024 Deutsche Telekom Group