GSMA adds Closing the Loop recycling service to portfolio

GSMA Industry Services has added Closing the Loop's One for One service to its portfolio, making the device-recycling offer available to mobile operators, manufacturers and other industry partners through the GSMA's industry services arm.

One for One links the sale, lease, upgrade or promotion of a new device to the collection and recycling of one end-of-life phone on the customer's behalf. It is designed to give companies a defined way to connect device transactions with waste recovery, rather than rely on broader environmental claims.

The launch comes as parts of the technology sector seek to present sustainability measures in more concrete commercial terms. Figures cited by the organisations show that 85% of surveyed consumers consider sustainability when buying a device, while more than 70% said they would pay more for an environmentally friendly phone.

The addition follows earlier use of the service by brands including Vodafone and T-Mobile. Closing the Loop said the model has also been used by Samsung and Google.

Across four continents, the service has linked more than 8 million devices to the collection and responsible recycling of scrap phones. That track record is likely to matter for operators and device makers seeking evidence that such schemes can be implemented at scale.

Commercial angle

The companies are positioning the offer as a commercial tool as well as an environmental one. Operators, original equipment manufacturers and other mobile ecosystem partners can fit the service into existing customer offers without adding complexity for businesses or users.

In practice, a mobile operator could attach the scheme to a handset upgrade, a manufacturer could include it in a sales campaign, or a leasing provider could use it as part of a circularity programme. The aim is to make waste recovery visible at the point of purchase or renewal, when customer attention is highest.

The backdrop is growing scrutiny of electronic waste, alongside regulatory pressure and changing consumer expectations. For the mobile industry, which depends on regular device replacement cycles, the challenge is how to address waste without undermining the economics of selling more hardware.

Sianne Ryder, Chief Executive Officer, Events and Industry Services at the GSMA, set out that view in comments accompanying the launch.

"Circularity is not just a sustainability objective; it is increasingly becoming a business opportunity for the mobile industry. We want to make it easier for operators and ecosystem partners to access practical services that can create customer value, support new propositions, generate new income streams and reduce operational spending while helping the industry make better use of the devices and materials already in circulation. One for One is a strong example of that approach, linking new device activity to responsible recovery in a way that companies can integrate into their own commercial models," said Sianne Ryder, Chief Executive Officer, Events and Industry Services at the GSMA.

Waste challenge

Electronic waste has long been a difficult issue for device makers and network operators. Although many companies have set targets around recycling, reuse and emissions, those efforts often sit apart from mainstream consumer offers and can be hard to explain clearly at the point of sale.

One for One aims to narrow that gap by tying each new device entering the market to the removal of an equivalent discarded phone. Closing the Loop said it works with clients to tailor the service to their commercial setting, target customers and sustainability objectives.

That flexibility may matter in a market where business models differ sharply. A premium handset brand, for example, may want to use the scheme to reinforce customer loyalty, while a mobile operator may focus on differentiating contract upgrades in a crowded market.

The GSMA's backing also gives the service a more formal route into the wider mobile sector. The industry body represents mobile operators and companies across the mobile ecosystem, and its services unit acts as a distribution and standards channel for products aimed at sector participants.

For Closing the Loop, the partnership extends the reach of a model it has spent years testing with technology and telecom groups. Founded in 2014, the company has focused on helping businesses connect device sales with the recovery of discarded electronics, including in developing markets where informal waste handling remains widespread.

Joost de Kluijver, Chief Executive Officer of Closing the Loop, said the arrangement with the GSMA could help move the concept into wider industry use.

"GSMA Industry Services gives the mobile sector a great route to turn good intentions into immediate actions that make business sense. One for One has shown that waste reduction can be made visible, understandable and relevant to customers. Our role is to help the tech industry turn waste reduction into a customer-centric and business-supporting service," said de Kluijver.