Fairphone Guest Lecture - Responsible Innovation (PDF)

Responsible Innovation: Changing an industry from within Table of Contents Introduction Challenges in the electronics industry Introducing Fairphone Thought leadership and impact A fine balance between design and repairability The future of tech innovation? Closing remark...

Responsible Innovation: Changing an industry from within Table of Contents Introduction Challenges in the electronics industry Introducing Fairphone Thought leadership and impact A fine balance between design and repairability The future of tech innovation? Closing remarks Questions Ana-Mariya Madzhurova Senior Legal Counsel 21 years  Challenges in the Electronic Industry Electronic waste is the world’s fastest growing waste stream… 1.5 billion phones are The average lifespan Only 20% are recycled sold each year Is two to three years after use Putting people and planet at risk Find it here: https://youtu.be/vmtaWQxBYFk?feature=shared Connected yet… Disconnected Introducing Fairphone HOW FAIRPHONE STARTED Fairphone started in 2010 as an awareness campaign against conflict minerals in consumer electronics. We noticed that although people were willing to use a fairer alternative, there wasn’t one on the market. This marked the birth of Fairphone as a social enterprise and the release of the Fairphone 1 in 2013. WHY WE’RE IN BUSINESS TODAY Our mission is to establish a viable market for ethical electronics and to motivate the entire industry to act more responsibly. Our Theory of Change 1 2 3 Raise Set an Motivate Awareness Example the Industry Our impact areas By making a phone, we want to focus and create impact in 4 areas: Fair Materials Fair Factories Longevity Reuse & Recycling Fairphone 5 Improved working conditions Climate Conscious We continue our living E-waste neutral wage program and Manufacturing with 100% expand partnerships with renewable energy and strategic suppliers. Investing in projects reducing CO2 emissions. Easy to Repair The usual suspects of what ends a phone’s life can easily be brought back to life thanks to the spare parts availability, minimizing both time and costs of repair. 70% fair focus materials 14 focus materials sourced fairly 5 year warranty & during its lifetime, and the first software support until to integrate Fairtrade Gold in its 2031 supply chain. We want to help you keep your device as long as possible! Fairbuds & Fairbuds XL Thought Leadership & Impact Fair Materials in Fairphone 5 >40% fair mined or recycled materials ~36% recycled materials in the phone = 75% across 14 focus materials : (% of all the materials used in Fairphone 5) Fairphone ensures that our materials are audited against the highest standards and invests in improvements at mined and recycled sources. More than 70% fair focus materials MAIN PCB MID-FRAME SOLDER PASTE 100% Fairtrade gold in supply chain 100% recycled aluminium 100% recycled tin 100% recycled copper Fairtrade gold in supply chain BACK COVER 100% recycled plastic DISPLAY 90% recycled magnesium 100% recycled indium BATTERY 40% recycled plastics Replaceable fair battery (cell, pack & PCB) 100% fair lithium ALLOY FOR SHIELDING (IRMA audited) 40% recycled alloy of 100% impact cobalt (via credits) copper, nickel, zinc 100% Fairtrade gold in supply chain 100% Fairmined silver credits 100% recycled tin 80% recycled steel SPEAKER UNIT VIBRATION MECHANISM 75% recycled plastics 100% recycled rare earths 100% fair tungsten 100% recycled plastics Fairtrade gold in supply chain Fair Factories: A fairer way of working Fairphone goes beyond traditional auditing by partnering with our direct and key component suppliers on topics such as living wages, worker voice and representation, health and safety, and the environment. Over the years, our fair factory programs have positively impacted the lives of 53,000 people. Living wages: Since 2019, Fairphone has supported factory workers of the final assembly factory and component suppliers with a living wage bonus - the first electronics company to do so. Worker voice: Uniquely within our industry, Fairphone guides our suppliers and sub-suppliers in setting up worker representation systems with democratic elections. We invest alongside our suppliers in improvements identified by workers - such as training courses or renovating dormitories - to increase worker satisfaction. Health and safety: We set a high requirement for social compliance for the final assembly of our smartphones (SA8000 or RBA Silver Recognition), and implement Clean Electronics Production Network’s PCDC tool for safe chemical use at final assembly and strategic component suppliers. Environment: We pay close attention to the environmental performance of our suppliers - including waste, water, energy and chemicals - encourage them to set ambitious energy and carbon reduction targets and to source renewable energy. Reuse and recycling The Fairphone 5 and all its electronic spare parts are 100% e-waste neutral. We ensure this by collecting electronic end-of-use products that equal 100% of units sold each year. Fairphone collected 24.7 tons of electronic waste in 2023: 25% from Fairphone owned take-back programs on the EU market, 12% by contributing to European schemes under the Waste Electrical and Electronic Equipment Directive (WEEE), and 63% collected in Ghana. As part of our own take-back program, in 2023 we harvested 785 bottom modules and 282 Fairphone 3 displays among other components, which can be used for refurbishment and repair. 5.26 tons out of the total 24.8 tons of e-waste was collected through a collaboration with Race Against Waste: an E-Waste Race in which 10 schools of one municipality collect (or repair) as much e-waste as possible to win a school trip. This competition educated more than 300 children, their families and neighborhoods about the world’s e-waste problem - and what can be done about it. Climate action Fairphone is committed to reach net-zero by 2045, five years ahead of global targets. We aim to reduce scope 1+2+3 emissions 90% by 2045 from our 2022 base year. Our net zero target is approved by the Science Based Initiative (SBTi). The Fairphone 5 and our Fairbuds XL are not only climate neutral but also climate conscious products - we minimize their global warming impact throughout their life cycle - manufacturing, transportation, use phase and end of life. We do this by: 1. Avoiding emissions: Design the product for longevity and repairability, minimizing the need for frequent replacements and reducing the carbon-intensive manufacturing phase. 2. Reducing emissions: Reduce the carbon intensity of our products across all stages of the value chain, including production, transportation, use, and end-of-life processes. 3. Contributing to climate projects: Invest in carbon reduction projects matching the amount of carbon footprint of our products sold each year. Projects are independently certified and adhering to internationally recognized quality standards. In 2023, we retired 2018 credits from Gold Standard projects in Congo and Uganda. Balancing Design & Repairability Overcoming Challenges 1. Overall thickness and screen size - We wanted to keep our device as thin as possible, we did not want to compromise on repairability and durability to drops. 2. IP Rating: Product designs always require trade-offs. One of these was the IP rating. 3. Lighter weight - For Fairphone 5, one of our focus areas was to reduce the weight of the device, since Fairphone 4 was quite heavy. 4. Increased repairability a. Camera Module b. Vibration motor c. SD and Sim Card Slot 5. Qualcomm® QCM6490 System-on-Chip (SoC) - With every new phone we research which chipset we should use that will allow us to increase our longevity and offer the right consumer experience when using our phone. 6. Recycled aluminium - One major achievement for us with Fairphone 5 is that we were able to use recycled aluminium, which we weren’t able to use for Fairphone 4.  The Future of Technological Innovation A changing landscape… 1. European Green Deal - Striving for climate neutrality through various policy initiatives. 2. Eco-design & Energy Labelling - Setting requirements for environmental performance with an emphasis on longevity and repairability. 3. Right to Repair Movement - Provide spare parts, repair information and reduce electronic waste. 4. Digital Strategy and Innovation Support - Access to support for research for developing advanced responsible technologies. 5. Green Public Procurement - Encouraging public sector to purchase more conscious products and drive demand for sustainable tech. 6. Fostering Investment - Sustainable Europe Investment Plan mobilising EUR 1 trillion in sustainable investment. 7. Development of standards - Blue Angel, EPEAT ensuring quality, reliability and trust to drive adoption. 8. Stakeholder mobilisation - Increased stakeholder awareness and engagement.  “If you think you’re too small to have an impact, try going to bed with a mosquito in the room” - Anita Roddick Change is in your hands Thank you for your time! Questions? Exclusive Discount for TUM Students 10% off our smartphone devices using code FAIRSTUDENT_10 20% off our audio devices using code FAIRSTUDENT_20