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The Circular Phone Report

The Circular Phone report

Type:

Author: 
Circle Economy, Fairphone, ABN Amro, Allen & Overy, ING, PGGM, NBA, Circularise, Sustainable Finance Lab
Publication Date: 
January, 2018
Country: 
Netherlands

Language for original content:

Scope:

Contact: 
Harald Friedl

The Circular Phone report provides practical answers to common financing pitfalls for circular businesses, using Fairphone as the real-life example. All learnings and contract templates created during the project are now available as open source and ready for other companies to apply to their products.

This report gives companies the tools to jumpstart and run circular business models where ownership of products is retained to a certain degree. This incentivises companies to create high-quality and durable products, while customers enjoy the performance of a product without the hassle. So far, businesses striving to implement “Product-as-a-Service” models have had the challenge of reconciling the need to find financing parties with the complexities of their own business model.

To achieve a financeable model for the Circular Fairphone Service, the Community of Practice created a blueprint for Fairphone’s business model. Through the creation of a legal template – a 1st Circular Service Contract- and a financial cash flow tool, the group has proven that the gap between the businesses and financiers can be bridged. One of the other concrete and practical outcomes was a 5-year cash flow projection that enables financiers to assess the benefits and risks of their investment.