Presenters

Source

Beyond the Hype: Unpacking Fairphone’s Real Impact on Tech Sustainability 🚀

We live in a world utterly dependent on our smartphones. Since 2017, there have been more mobile subscriptions globally than people on Earth! 📱🌍 A staggering 1.2 billion smartphones were shipped last year – that’s about 15% of the world’s population buying a new device. But here’s the kicker: manufacturing these pocket-sized powerhouses isn’t small potatoes when it comes to environmental impact. A 250g smartphone can have a “true weight” of up to 70 kilos when you consider all the resources, energy, and water that go into extracting minerals and manufacturing its components. While some manufacturers dabble in recycling, many cite complex supply chains as an excuse for limited impact and rarely champion the second-hand market.

This is where Fairphone steps in. Founded in 2013, they’ve built their brand on ethics and sustainability, empowering users with devices designed for longevity and repairability. Owning a Fairphone, especially a secondhand one, is often seen as a badge of honor in sustainability circles. But beyond the statement it makes, what has Fairphone actually achieved? Are we just following a trend, or is there tangible progress being made?

To shed light on this, we’re diving deep with Agnes Crepet, Head of Software Engineering at Fairphone, who has been instrumental in shaping the company’s journey for over seven years. Agnes brings a unique perspective, bridging both hardware and software, with a passion for making tech fairer, longer-lasting, and more inclusive.

The Fairphone Journey: From Niche to Noteworthy 📈

When Agnes joined Fairphone in 2018, the company was selling a modest 20,000-30,000 phones annually. While impactful for their size, the real game-changer came when they crossed the 100,000 units sold per year mark around 2020. This volume wasn’t just a number; it significantly boosted their ability to engage with industry partners and gain a foothold with institutional stakeholders. By 2022, they consistently surpassed this milestone, and with the launch of the Fairphone 6 generation, they’re projecting even higher sales for 2025, thanks to improved pricing and market reception.

It’s important to note that Fairphone’s growth isn’t measured in the explosive doubling of numbers seen in typical tech companies. Their focus on a sustainable, ethical business model means steady, impactful progress. As a social enterprise, their growth is tied to strengthening their core mission, not just rapid expansion.

Who Owns Fairphone? A Mosaic of Impact 🤝

Fairphone’s ownership structure is as unique as its mission. While early funders still hold shares, a significant shift occurred in 2023 with a €50 million investment from a consortium of impact investors led by InvestNL. This injection of capital, alongside existing shareholders like co-founder Miguel Ballester and early employees, ensures a distributed balance of power, maintaining Fairphone’s commitment to its core values.

Like any business, Fairphone has faced its share of hurdles. While expecting more sales in 2020-2021, the COVID-19 pandemic presented challenges. However, the company demonstrated remarkable resilience. They maintained a positive EBITDA during those years, even while investing heavily in new products and infrastructure. While 2023 saw a slight dip in EBITDA, this was anticipated as part of their strategic investment in growth and innovation.

The pandemic, surprisingly, also had a positive impact. Many consumers in Europe began re-evaluating their purchasing habits, a shift that benefited Fairphone’s core message of conscious consumption. This demonstrated that even in a crisis, consumer sentiment can align with a more sustainable approach.

Deconstructing the Environmental Footprint: Where Fairphone Shines ✨

The environmental impact of smartphones is immense, with 70-80% stemming from the production phase – raw material extraction and manufacturing. This is where Fairphone’s approach diverges.

Beyond Extraction: The Power of Longevity ⏳

While Fairphone uses “fair materials” in their production, acknowledging that virgin material extraction still carries an impact (similar to other brands), their primary strategy for reducing environmental impact lies in prolonging the lifespan of their phones.

  • Modular Design & Repairability: This is Fairphone’s secret sauce. By making their phones modular and easy to repair, they combat the cycle of premature replacement.
  • Long-Term Support: Fairphone offers extended software and hardware support, a stark contrast to the industry average of replacing phones every 3 years.
  • The 44% Impact Reduction: Their life cycle assessments reveal a staggering 44% reduction in global environmental impact by extending phone usage from the average 3 years to Fairphone’s target of 5-7 years. This is the critical metric that truly sets them apart.

While improvements in ecotoxicity and global warming metrics are present, the true win is keeping phones in users’ hands for much longer.

From Social Champion to Environmental Force: A Natural Evolution 🌿

Interestingly, Fairphone’s initial focus wasn’t solely on environmental impact. It began as an awareness campaign in 2010, evolving into a company in 2013 with a strong emphasis on social impact. The Fairphone 1’s tagline, “A seriously cool smartphone that puts social values first,” highlighted issues like conflict-free tin and tungsten.

While the Fairphone 1 had a removable battery, the real leap towards modularity came with the Fairphone 2 in 2015. This shift was driven by the realization that prolonging device lifespan had the most significant environmental impact. The focus shifted to enabling users to easily replace components like screens and batteries, addressing common reasons for phone obsolescence.

Recycling as a Complement, Not a Cure ♻️

Fairphone also embraces recycling and urban mining, recognizing its environmental and social benefits. However, they acknowledge the limitations:

  • Material Loss: Recycling processes can lead to 20-35% material loss.
  • Technical Challenges: Half of the metals in a phone may have a functional recycling rate of less than 50%.

Therefore, while they prioritize recycling for metals like aluminum, copper, and indium, they also maintain a focus on fair mining practices for virgin materials. This balanced approach ensures they address both environmental and social concerns across the entire lifecycle.

Tackling Software Obsolescence: The 8-Year Promise 💡

Beyond hardware, software obsolescence is a major driver of smartphone replacement. Agnes, leading the software engineering efforts, has been pivotal in tackling this challenge.

  • The 8-Year Software Support Promise: Fairphone now guarantees 8 years of software support for models like the Fairphone 5. This is a bold commitment in a landscape where Android versions typically have a lifespan of around 3-4 years.
  • The Challenge of Updates: Upgrading operating systems like Android involves updating firmware for numerous sub-components (chipsets, sensors, cameras, etc.). This requires extensive collaboration with component manufacturers, a complex endeavor when aiming for long-term support.
  • Beyond Android: Fairphone actively supports open-source operating systems like CalyxOS, LineageOS, PostmarketOS, and Ubuntu Touch. This not only extends the life of devices but also enhances privacy and user control.
  • Securing Partnerships: Fairphone’s success in achieving long-term software support and accessible spare parts (priced reasonably) is a result of meticulous negotiation with vendors, legal teams, and engineers working in tandem. Their “change the industry from the inside out” approach encourages partners to embrace open-source practices.

The Power of Open Source and Lobbying 🌐

Fairphone’s commitment to open source isn’t just about software longevity; it’s about fostering community and transparency. By releasing source code and device trees, they empower developers to build alternative operating systems, extending the life and functionality of their devices.

Furthermore, Fairphone actively engages in lobbying efforts, influencing legislation like the Eco-design Directive in Europe and the Index of Repairability in France. Their advocacy for longer support periods and accessible spare parts is gradually shaping industry standards, making it easier for other manufacturers to follow suit.

Driving Industry Change: Successes and Failures 🏆🚧

Fairphone’s mission is to be a catalyst for change, not just a successful company.

Living Wages: A Moral Imperative, An Industry Challenge 🧑‍🏭

A significant success story is Fairphone’s commitment to ensuring a living wage for workers assembling their phones. This initiative, costing less than $2 per smartphone, demonstrates that ethical labor practices are financially viable. They’ve developed toolkits and guides to help other manufacturers implement living wages.

  • The Failure: Despite their efforts, Fairphone hasn’t yet convinced major competitors to adopt similar living wage programs across their entire supply chains.
  • The Success: Within their own supply chain, many sub-suppliers have adopted living wage practices, impacting over 120,000 people.

The Nuance of Progress: It’s a Marathon, Not a Sprint 🏁

When asked about other manufacturers following their lead, Agnes shared a balanced perspective. While there’s a growing awareness and some incremental changes, truly transformative shifts from giants like Apple or Samsung are still a work in progress. Fairphone’s strategy isn’t to replicate their scale but to prove that a sustainable, ethical business model is not only possible but desirable.

The Limits of One: A Systemic Challenge 🌍

Agnes candidly admits that Fairphone cannot solve all the world’s tech-related problems alone.

  • Geopolitical Constraints: Issues like the Hukou system in China, a government registration system that dictates access to education and healthcare based on birthplace, are systemic challenges beyond Fairphone’s direct influence.
  • Business Model Evolution: While Fairphone aims for maximum longevity, they understand that to grow and amplify their impact, they need to capture more market share from the billions of phones sold annually. Their business model is inherently linked to their impact; selling more phones means more positive change.

The Future is Fair: A Call to Conscious Consumption 📣

Fairphone’s journey is a powerful testament to the fact that technology can be developed and consumed more responsibly. Their focus on longevity, repairability, fair labor, and transparency is not just a marketing strategy; it’s the core of their DNA.

As Agnes puts it, the goal is to push the industry towards a fairer and more ethical future. By choosing Fairphone, consumers aren’t just buying a smartphone; they’re supporting a movement that challenges the status quo and proves that doing good can also be good business. The increasing legislative support for repairability and long-term support further validates their approach, signaling a global shift towards a more sustainable digital world. It’s time to move beyond the hype and embrace the tangible impact of conscious technology choices. ✨

Appendix