Traditional tools like Product Carbon Footprints (PCF) and Life Cycle Assessments (LCA), though widely used, often fail to reflect the actual use phase of consumer electronics. These methods, typically aligned with ISO standards, overlook how circular business models (CBMs) influence real-world usage patterns. A new initiative in Germany—UNDRESS Circularity—aims to fill this critical gap with a robust, data-driven approach.
Introducing the CBMI methodology
The Circular Business Model Impact (CBMI) methodology, developed by Circularity with Fraunhofer IZM, Systemiq and twelve industry partners including Assurant, Everphone, Vodafone and Deutsche Telekom, shifts the focus toward “active use time” rather than estimated product lifespan. This metric isolates the time a product is actively used for its intended purpose and distributes environmental impact—such as Global Warming Potential (GWP)—over this use time.
Accounting for rebound effects
Unlike traditional models, CBMI also factors in rebound effects. For instance, circular models may unintentionally increase product turnover or lead users to acquire extra devices. CBMI includes these behavioral dynamics to ensure realistic and comprehensive assessments of environmental gains.
Results from German electronics case
A Germany-based case study focused on circular practices in the consumer electronics sector. Used sales of Apple iPhones and similar devices extended use time by up to 33%, cutting emissions per year by 17–20%. Rental models also showed promise. For example, smartphone rentals to private users increased active usage by 17%, reducing annual emissions by 11%. Long-term rentals of over 36 months are increasingly favored by businesses, highlighting commercial appeal.
Complementary strengths of resale and rental
Both used and rental models lengthen product usage and reduce emissions, each serving different user profiles. Their complementary nature means tailored application across device types could unlock more value. In Germany alone, wider adoption of these models could prevent 200,000 tonnes of CO₂e annually and cut new smartphone sales by 2–3 million units per year.
Challenges in data and application
While CBMI provides a practical framework for measuring CBM impact, challenges remain—particularly around collecting accurate usage data and understanding the post-use fate of exported products. Companies are encouraged to follow a step-by-step guide included in the report and collaborate across sectors to improve transparency and data availability.
A blueprint for future standards
The CBMI approach lays a foundation for integrating circular metrics into global environmental reporting standards like the GHG Protocol. It offers stakeholders—from regulators to investors—a credible, transparent way to assess and compare circular strategies, moving from theoretical benefits to real-world environmental outcomes.
Interested in the full report? Go to https://www.circularity.me/undress-circularity-market-report-2-assessing-industry/?mc_cid=d76fa59d03&mc_eid=62693f6427
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