Each year, 62 million tonnes of electronic waste are generated globally, with less than 25% recycled effectively. Most companies treat retired IT assets as sunk costs, leaving up to €18 billion in unrealized residual value on the table annually. This waste represents not only an environmental challenge but also a missed business opportunity to boost profits and brand reputation.
The importance of the circular delta
The whitepaper, by Peter Evans and Guennaël Delorme, introduces the concept of the “circular delta,” the gap between hardware expenditure and recovered residual value. A high delta, for instance, spending €1 million and reclaiming only € 100,000, indicates significant lost value. By shifting IT retirements from cost centers to value drivers, organizations can increase returns by 30% to 70%.
Platforms unlock hidden asset value
Circular platforms like Back Market, Aucnet, RGX, and eBay Refurbished help businesses connect to global resale and recycling networks. These tools simplify logistics, improve compliance, and enable the resale of Apple iPhones and other devices, creating new revenue streams and improving asset recovery strategies.
The role of reverse logistics
An effective reverse logistics system hinges on asset recovery, operational sorting, and value generation through refurbishment. Prioritizing reuse over recycling reduces environmental impact while boosting financial returns.
Five strategies for platform engagement
Organizations can build proprietary platforms, white-label existing ones, or outsource resale operations. Depending on resources, partnerships with providers like Sims Lifecycle Services or participation in sector-wide initiatives such as GSMA Marketplace may offer better scalability and compliance.
Challenges that require active management
Common hurdles include data security risks, unrealized value from poor recovery practices, inefficiencies in processes, high transport costs, and misaligned internal incentives. Addressing these barriers requires cross-functional alignment and continuous performance evaluation.
Tech and policy boost circular adoption
Digital tools such as automation, AI, and Digital Product Passports (DPPs) increase traceability. Regulatory efforts like Right to Repair, Extended Producer Responsibility, and the EU’s Ecodesign for Sustainable Products framework further promote refurbishment and reuse.
Three-phase approach to implementation
The whitepaper recommends a structured path: begin with pilot programs in the first four months, integrate systems and workflows over the next 14 months, and optimize for scale and performance over 18 months. This phased approach supports operational integration and long-term circularity gains.
Market
Trade-in
Repair
Refurbishing
