Climate Change Data

Fairphone B.V.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:9,564 tCO2e (Scope 3)
Scope 1 Emissions:0
Scope 2 Emissions:-14.33 tCO2e (market-based)
Scope 3 Emissions:9,564 tCO2e
Renewable Energy Share:100% renewable electricity in office
Waste Generated:9.6 tons of e-waste collected

ESG Focus Areas

  • Ethical Electronics
  • Circular Economy
  • Decent Work
  • Climate Change

Environmental Achievements

  • Achieved e-waste neutrality for Fairphone 4 and modules.
  • Avoided 15 tons of e-waste.
  • Avoided 999 tons of CO2e.

Social Achievements

  • Paid living wage bonuses to 1,926 factory workers totaling US$305,000.
  • Improved working conditions at five strategic Fairphone 4 suppliers.
  • Benefited over 83,000 people cumulatively since 2017 through various programs.

Governance Achievements

  • Increased revenue by 62% compared to 2021.
  • Achieved a net positive financial result for the third consecutive year.
  • Conducted a thorough investigation and addressed an internal misconduct case.

Climate Goals & Targets

Long-term Goals:
  • Reach net-zero emissions by 2045.
Medium-term Goals:
  • Reduce 46% of scope 1 and 2 GHG emissions from a 2019 base year by 2030.
  • 60% intensity reduction of business operations & downstream activities by 2030.
  • 30% of tier 2 suppliers have set emissions reduction targets by 2030.
Short-term Goals:
  • Increase sales to 235,000 units by 2023.
  • Maintain Longevity Score at 4.5 years in 2023.
  • Increase Fair Materials to 70% by 2023.

Environmental Challenges

  • Falling short of ambitious sales growth goals (115,681 units sold vs. 168,000 target).
  • Supply chain disruptions due to the economic slump and COVID-19.
  • Limited industry response to calls for living wages and fair materials.
  • Complexity and opacity of the ASM cobalt supply chain.
  • Internal misconduct case.
Mitigation Strategies
  • Improved website accessibility and speed, launched split payment solution, piloted incentives for sustainable options, expanded indirect sales channels.
  • Developed deeper trust and engaged more frequently with suppliers.
  • Integrated more recycled materials, took steps in enabling fairer supply of cobalt and gold.
  • Launched Fairphone Easy (smartphone subscription service).
  • Conducted thorough investigation, stopped working with the supplier in question, and addressed employee misconduct.

Supply Chain Management

Supplier Audits: 8 strategic suppliers audited

Responsible Procurement
  • Fair Sourcing Principles
  • Fair Materials Roadmap
  • Living wage payments
  • Supplier engagement programs

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GHG Protocol Corporate Standard

Certifications: SA8000 (final assembly factory), ISO 14001 (final assembly factory), Android Enterprise Recommended Certification

Third-party Assurance: ERM CVS

Sustainable Products & Innovation

  • Fairphone 4
  • True Wireless Stereo Earbuds

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:11,135 tCO2e (Scope 3)
Scope 1 Emissions:0 tCO2e
Scope 2 Emissions:36.8 tCO2e (location-based)
Scope 3 Emissions:11,135 tCO2e
Renewable Energy Share:100% (Fairphone 5 final assembly)
Total Energy Consumption:112 MWh
Water Consumption:218 m3
Waste Generated:5.2 tons

ESG Focus Areas

  • Fair Labor Practices
  • Environmental Sustainability
  • Circular Economy
  • Climate Change
  • Responsible Sourcing

Environmental Achievements

  • Achieved 100% e-waste neutrality for Fairphone 4 and 5.
  • Avoided 944 tons of CO2e emissions.
  • Fairphone 5 contains 36% recycled materials by weight.
  • 100% renewable electricity used in Fairphone 5 final assembly.

Social Achievements

  • Paid a living wage bonus to 1700 workers at four supplier factories.
  • Improved worker representation at two suppliers.
  • Benefited 105,877 people through various interventions and programs.

Governance Achievements

  • Established a Diversity, Equity, and Inclusion (DEI) Committee.
  • Reduced unadjusted gender pay gap to 5.7%.

Climate Goals & Targets

Long-term Goals:
  • 90% absolute reduction in Scope 1, 2, and 3 emissions by 2045 (Net Zero).
Medium-term Goals:
  • 30% absolute reduction in Scope 3 emissions by 2030.
  • 70% fairer strategic suppliers for all Fairphone products by 2026.
Short-term Goals:
  • 42% absolute reduction in Scope 1 and 2 emissions by 2030.
  • 15% absolute reduction in Scope 3 emissions by 2026.

Environmental Challenges

  • Lower than target smartphone sales due to cost-of-living crisis and market shrinkage.
  • Complexity of changing material composition of mass-produced components.
  • Psychological barrier towards renting a phone.
  • Increased Scope 3 emissions due to operational activities.
Mitigation Strategies
  • Increased marketing investments.
  • Launched Fairphone 5 and Fairbuds XL.
  • Offered refurbished Fairphone 4s.
  • Developed a new fair lithium supply chain.
  • Implemented initiatives to reduce GHG emissions in the supply chain.

Supply Chain Management

Supplier Audits: 100% of tier 1 suppliers for star products

Responsible Procurement
  • Ways of Working Together document (Code of Conduct)
  • Environmental, labor, and human rights requirements in contracts.
  • CSR assessments.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, GHG Protocol, SBTi

Certifications: B Corp, SA8000, ISO 45001, ISO 14001, ISO 50001

Third-party Assurance: ERM Certification and Verification Services Limited

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 9 (Industry, Innovation, and Infrastructure)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)

Fairphone's initiatives contribute to these goals through responsible sourcing, fair labor practices, sustainable product design, and climate action.

Sustainable Products & Innovation

  • Fairphone 5
  • Fairbuds XL
  • Fairbuds

Awards & Recognition

  • iF Design Award (Fairbuds XL)