The global production of consumer goods, particularly smartphones, has severe consequences for biodiversity. A recent report by ABN AMRO highlights that the manufacturing of trainers, sofas, and smartphones leads to significant habitat loss, threatening ecosystems worldwide. The figures are staggering: each smartphone produced results in an average biodiversity loss of 16.6 m², which, when aggregated globally, amounts to approximately 1,942,000 hectares of wildlife habitat lost annually. According to ABN AMRO, using a pre-owned smartphone is an excellent alternative that supports biodiversity
The environmental footprint of smartphones
Smartphones contribute massively to biodiversity loss. According to the report, the total damage caused by their production is comparable to that caused by other consumer goods, such as trainers and sofas, with the latter causing habitat loss of 2.7 m² and 173 m², respectively. The cumulative impact of these products represents a staggering annual loss of biodiversity over an area nearly two-thirds the size of the Netherlands.
The need for sustainable practices
Preserving biodiversity is not just an environmental concern; it is essential for economic stability and human well-being. The report emphasizes the urgent need for the adoption of renewable energy, the use of recycled materials, and the extension of product life cycles. These measures, alongside reduced consumption, offer the most significant positive impact on biodiversity preservation.
To mitigate the damage inflicted by smartphone production, a proposed increase in prices—an average of € 7.10 per device—could help fund biodiversity restoration efforts. Such an initiative would ensure that companies contribute to rectifying the environmental costs associated with their products.
A shift in retail practices
As part of a broader initiative, starting in 2025, the European Union’s Corporate Sustainability Reporting Directive (CSRD) will require large companies to report their products' impact on biodiversity. This regulation aims to create transparency and hold businesses accountable for their environmental footprint.
Henk Hofstede, Retail Sector Banker at ABN AMRO, emphasizes the importance of retailers understanding their impact on biodiversity. “Retailers can analyze their value chain to determine how their products impact biodiversity,” he explains. By implementing targeted policies and science-based transition plans, companies can better manage their biodiversity risks. A robust data dashboard will assist retailers in tracking their progress and demonstrating commitment to sustainability.
Conclusion
The findings from the ABN AMRO report serve as a wake-up call for both consumers and retailers. As smartphones continue to dominate the market, it is imperative to recognize their environmental costs. By adopting sustainable practices, like using an used smartphone and or trading in older models, and being transparent about biodiversity impacts, the retail sector can play a crucial role in preserving the planet's ecosystems.
Source: ABN AMRO
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