A circular and sustainable value chain

requires both business and government to shift from
linear to circular business models. The tech industry can
contribute by increasing circularity in all parts of the tech value chain,
from extraction and refinement of materials, in
production, distribution, handling by customers and
end users to waste management and recycling.

The traditional linear model for electronic products consists of five stages: extraction of materials, manufacturing, distribution, final consumer and finally waste.

Instead, in a circular model, products can take several
new paths after the first consumer stage, by being reused by another consumer, upgraded, disassembled and recovered, or if none of this is possible anymore
: recycled. The ultimate goal of a circular
model is to completely eliminate waste. As electronic
waste contains many valuable and rare materials, such as gold, platinum, cobalt, earth metals, aluminum and tin, electronic waste represents a major opportunity for the industry to secure access to raw materials while reducing waste.

In the tech industry, more and more companies are moving to new, more circular business models that focus on as-a-service and the sharing economy instead of just
selling hardware. This transition lays the foundation for a more circular economy by shifting the focus from simply selling a product to creating a more long-term relationship with the buyer, where the company owns and takes responsibility for the product throughout its lifecycle.

All Nordic mobile operators now offer fully circular models where you can both hand in, often for a fee, and buy used mobile phones, with the same guarantee and customer experience as a new mobile phone but with a lower carbon footprint. This
model is also available at the major electronics chains.

Producer responsibility is a policy instrument to achieve environmental objectives and means that producers are responsible for collecting and taking care of end-of-life products and/or materials. Producer responsibility exists in several areas related to IT products.

A shift from virgin (i.e. newly produced) to more recycled raw materials from electronics recycling or
commodity markets also drastically reduces the risk and environmental impacts of mineral and material
extraction.

For example, the use of recycled metals can reduce greenhouse gas emissions from mobile phone manufacturing by an estimated 50%.

This shift, in turn, requires the expansion of recycling infrastructure and likely both changes in customer behavior and an increased focus on sustainability in public procurement, which the industry is working to create.

The supply and value chain for tech industry products today often relies on a large number
of subcontractors in everything from extraction of raw materials and materials, manufacturing, assembly, shipping and transportation
to end users. It is common for the chain to span several continents. At each stage of the value chain, there are social and environmental sustainability risks, and thus
challenges for the industry to address. The demands on companies to be able to report on both social
and environmental sustainability are increasing not only for their own operations but also for suppliers.

The environmental and social sustainability risks and actual impacts are greatest further down the supply
chain, particularly in the sourcing of the materials and minerals needed to create tech industry products.

According to the International Energy Agency (IEA), the world's mineral extraction needs to increase four times by 2040 to meet the Paris Agreement's climate goals, as many of the technologies that are considered crucial to achieving the transition use different minerals in their production.

For example, the world is expected to need 21 times more cobalt than today and 42 times more lithium.

The production of all the raw materials and materials needed in electronics is a major challenge for the industry.

In its report Hållbara leveranskedjor (Sustainable supply chains), TechSverige describes the industry's prerequisites for working towards sustainable supply chains.78 Guaranteeing environmental and social responsibility throughout the supply chain is a complex and extensive task for companies that may have thousands of suppliers. It is particularly challenging
to set and monitor requirements for downstream suppliers, i.e. subcontractors to suppliers. Companies in the industry work with their own and joint efforts to ensure that all links in the supply chain comply:

In addition to the internal work, companies can also choose to join various industry initiatives. Examples of industry initiatives to ensure social responsibility in the supply chain