Our journey: the Fairphone Timeline

FAIRPHONE’SIMPACT 2020
AOur
challenge
to the industry
profitability:a challenge to industry
Impact report 2020

2

An open letter to the electronics industry
From Eva Gouwens, CEO, Fairphone
Dear Electronics Industry,
Anita Roddick once said “If you think you’re too

In 2013, Fairphone was founded on a disruptive

small to have an impact, try going to bed with aidea — that all of us could be producing ourmosquito in the room.”

products more fairly, and with a more positive
impact on the world. We publish this Impact

That’s Fairphone’s mission in a nutshell: be that

Report annually to measure, share and betiny mosquito motivating a massive industry

challenged on our imperfect progress towards

to take responsibility for their impact on thethe goal of producing the most fair andworld, by establishing a viable market for ethicalenvironmentally sound phone we can, and ourelectronics. And I know there are many of you

progress in challenging you to do the same.

who agree this is needed. You know how many
people are working in unacceptable conditions.

Over the few years we’ve been around, we’ve

You know the staggering amount of waste theheard a number of arguments why what we’reelectronics industry generates. And you’re aware

trying to do is impossible. Rather than deter us,that communication technology is on track tothey’ve motivated us, and kept us sharp. We tookaccount for 14% of the world’s greenhouse gas

them as challenges.

emissions by 2040.

Anita Roddick once said “If you think
you’re too small to have an impact,
try going to bed with a mosquito in
the room.”
Impact report 2020

3

Challenge 1:

mine to component, and in 2016 established

Challenge 4: “Fairphone is a niche. Your

“There’s no demand for a fairer phone.”transparent supply chains that drive positive

solutions won’t scale.”local impacts for all four conflict minerals i.s.o.
Turns out, there is. When the Fairphone 1 wasmaterials: tin, tantalum, tungsten and gold.

Many of the solutions we’ve pioneered can scaleoffered for pre-sale, it didn’t even exist. We

And we published our results for you to use. Our

up to your volume of manufacturing and sales.

asked people if they would put down money

future roadmap focusses on 14 materials.

Thanks to the work we’ve done to create new

for the idea of a fairer phone. Our crowd-

sources of fair gold, improving the working

funding campaign had a goal of 5,000. Even

Challenge 3: “OK, maybe some people want it

conditions of miners and our work -founding

we underestimated the appeal of the idea of anand you can make it. But people won’t pay for

the Fair Cobalt Alliance, you can buy Fairtrade

ethical phone. In the end 60,000 people ordered‘fair’; they only want the latest features.”Gold or join the Alliance today. We’re inviting

the Fairphone 1, sight unseen.

all of you. You, too, can negotiate with factories
We don’t claim to have the bells and whistles

in Asia to pay a bonus per device to incentivize

Since then our sales figures have grownof the all-singing, all-dancing, latest greatest

improvements in worker voice and satisfaction,

tremendously. Fairphone is now offered bygadget on the planet. We sell a phone that people

and help bridge the gap to pay a living wage,

some of the largest operators and resellers inbuy because it is a good phone ánd because they

as we do.

Europe, and our ethical mission featured in theirbelieve in the change we’re making. Because

television ads.

they like the fact we provide a modular productImagine that. At your volume of manufacturing,

designed to last, and designed to be repaired

the impact would be enormous. You could

Challenge 2:

rather than routinely discarded. For the samechange the world.

“It’s impossible to change the existing system.

money, our customers know they could have

Supply chains are far too complex to trace

more ‘tech specs’. They don’t choose more.

down materials to the source”

They choose better. Not just a better phone - a
better future. And their pride in being a part ofIt’s not easy, but we’ve proven it can be done.

creating that is, for many, the most important

We defined four conflict minerals for whichfeature of all. The market for more ethical andwe sought fair sources. We sought mines thatenvironmentally friendly options will continue

weren’t exploiting children or funding militias

to grow.

and worked with certifying agencies to ensureongoing monitoring. We successfully mapped
the journey of tin and tantalum in 2013 from

Challenge 5: “Being fair costs too much. You
can’t make a fair phone at a profit.”
Here’s some news. In 2020, Fairphone became
profitable at scale. We’ve proven our disruptiveidea is sound: that an ethical business model
can be a viable business model. So many said
it couldn’t be done. But we did it. With a great
product backed by a dedicated customer baseand a strong and motivated team, in a pandemicyear.

Impact report 2020

4

I hope, in the kindest sense, that this makes you

I know there are many like-minded people out

uncomfortable. Because it raises an inconvenient

there in some of the biggest companies in thequestion:

sector. I hope that this report will prompt you
to drive change, and aid you in your efforts. I

If we can run a profitable company that’s kinder

invite you to have a look at what we’ve done, at

to human beings and to nature, why couldn’t

the impact that we’ve had, and consider how you

you?

might adopt and adapt our methods. Where yousee challenges, challenge us: keep us sharp andShould we continue to treat Corporate Social

raise the bar. Reach out with questions. We’re

Responsibility as a compliance risk that

happy to tell you more and collaborate. We’dwe mitigate with checklists and corporate

welcome your company on this journey.

communication? Should we avoid artisanalmining because it might impact our reputation,It’s not a path you’ll walk alone. Every day, I’mor should we look for solutions? Or can thisenergized by the force and passion our mission

little mosquito motivate an entire industry to

instills in Team Fairphone - from our amazing

consider people and the Earth in our supply

staff to our beloved Fairphone owners to ourchains and in our business decisions. To take ourvisionary partners.

responsibility as humans and leaders.
We’ve met every one of your challenges. We
The first steps have been taken. Some of you

invite you to meet ours.

have followed our example by not adding
chargers and cables to the packaging, including

Eva Gouwens

a fair material in a device, using recycled

CEO, Fairphone

packaging materials or joining the Fair Cobalt
Alliance. But there is more you can do.

Impact report 2020

If we can run
a profitablecompany that’s
kinder to humanbeings and tonature, why can’tyou?

Contents

TABLE OFCONTENT &MATERIALITY
INDEX

5

1. The industry’s impact on our world6

1.1 The system needs disruption

6

1.2 A fairer way of doing business8

2. Our journey: the Fairphone Timeline

10

2.1 Fairphone origin story10

2.2 2020 product highlight: the Fairphone 3+13

3. Our Impact on people and planet15

3.1 Our impact at a glance

16

3.2 Key Performance Indicators

16		

A. Establish a market for ethical phones17		

B. Longevity: creating products that last19		

C. Circularity: take-back, reuse and recycling

21

We’re super enthusiastic about what we do and we have a lot

		

D. Sourcing fair materials

23

to share. But, if we were to include everything, this report		

E. Putting people first: good working conditions

27

would be huge! We therefore made choices about what we do		F. Driving wider impact within our industry

29

and don’t include in our Impact Report. We surveyed a variety

4. Fairphone’s stakeholders

31

of our stakeholders to gauge which topics we should report on

4.1 Impact individuals coming together

31

and what to include in this document, in addition to compa-

4.2 Fairphone Community Forum33

ny benchmarks like our B-corporation status and accepted

4.3 Our staff: Fairphone as an employer

34

standards for impact reporting. We compared this list of to-

4.4 Our industry: suppliers, peers, NGOs and governments

35

pics with the topics we, as Fairphone, consider important for5. Dare to imagine a better future

36

achieving our mission. Within the scope of this report are our

APPENDIX

38

impact focus areas. These are the key areas in which we work
to drive impact, quantified by company Key Perfomance Indicators to which we hold ourselves accountable. To read more
about the decisions we made about what to include
and exclude, see Appendix.
Impact report 2020

6

1.
THE
INDUSTRY’SIMPACT ON
OUR WORLD

1.1 The system needs
disruption
Our beloved smartphones;
it’s increasingly impossible toimagine life without them. The
population of mobile devices
has exceeded the humanpopulation, reaching more than
8 billion. Every year, 1.4 billion
phones are sold worldwide,and every year, we throw awaymillions of mobile phones:
most aren’t built to last or tobe repaired, and consumers areconstantly encouraged to swap
a perfectly good phone for thelatest model.
Impact report 2020

The industry’s impact on our world

7

Users keep their phones for an average of 2-3

are a multitude of issues for these workers toyears before buying a new one, often banishingcontend with. The traditional industry response

their old phone to the back of a drawer. Only 12-

to these issues is risk management. High risk

15% of discarded phones in Europe are recycled,

producers are audited on their compliances towith only a fraction of material actually being

corporate social responsibility codes of conduct.

recovered. It’s no wonder that e-waste is theThis approach, however, has proven to haveworld’s fastest growing waste stream, with 50

a limited effect on more systemic issues likemillion tons of e-waste produced per year.

excessive overtime, worker voice and low wages.

12

Foremost, it fails to catalyze the cooperation andThis “make-use-dispose” business model

investment needed throughout the supply chain

convinces users that repairing a broken device

to tackle the root causes behind these issues.

is pointless, especially when they could justbuy a new phone with all kinds of exciting (butSo why is our industry still acting like it’s finenot necessarily essential) innovations. Suchto continue doing business as usual? Of thebusiness models are increasing pressure on

greenhouse gases released globally, 3.7% are due

decreasing resources, driving greenhouse gas

to the use and production of electronics, and byemissions, and generating shocking amounts of2040, communication technology will accountwaste, much of which ends up in countries withfor 14% of the global environmental footprint.3

underdeveloped recycling systems, creating

We need to find a better way of doing things,

health and environmental hazards.

quickly.

This focus on the short term also has an
impact on the people employed throughout theelectronics industry supply chain.
Over 18 million people work in the electronics
manufacturing industry and another 100
million work in the mining of materials used
for manufacturing. From hazardous working
conditions to forced and child labor, there

Impact report 2020

Identifying the impact of the circular economy (2019).
Global e-waste monitor (2020).
3.
Belkhir, L., Elmeligi, A Assessing ICT global emissions
footprint: Trends to 2040 & Recommendations (2018)
1.

2.

The industry’s impact on our world

8

1.2 A fairer way of doing business

At Fairphone, we focus on four key areas where
we can most effectively leverage our idea’s tomaximize impact:•

Longevity: creating products that last

Fairphone was founded in 2013 as a company

Ethical electronics requires a holistic approach•

Circularity: take-back, reuse and recycling

to provide alternatives for the social andtowards sustainability, respecting people and•Sourcing fair materials

environmental challenges the electronics

planet. To achieve our mission, we drive change by•

Putting people first: good working

industry faces. We were founded on a mission:a 3-step approach, our ‘theory of change’:

conditions“by establishing a viable market for ethicalelectronics, we motivate the entire industry to

1. Raising awareness.

We put people and planet at the core of ouract more responsibly”. We’re modeling fairer

We uncover the complex supply chainsdecisions. From the suppliers we work with tosolutions for the malpractices we find, from abehind electronic products and communicate

the consumers that hold a Fairphone in theirrepairable phone to paying living wage bonuses.

transparently about what we find to a wide grouphands, we constantly think about how our way

Our business model and products don’t justof people to create awareness around issues inof doing business makes impact, good and bad.

empower consumers to make a fairer choice;the industry.

they prove that fairness is both possible, andgood for business.

Measuring our impact is central to how we

2. Setting the example.
Step by step we are building our company to modela new way of making and using products. In doing
so, we’re proving it’s possible to make more ethicalchoices in your business AND to be commerciallysuccessful.

3. Creating followers.
By practicing a fairer business model and creating
strategic partnerships with key industry actors,
we help motivate the electronics industry to makecaring for people and planet a standard part of
doing business.

Impact report 2020

work. We follow industry and government
best practices for auditing and monitoring our
supply chain, but we need something different
than the traditional auditing framework toeffectively tackle the challenges the electronics
industry now faces. It’s important for us to go
beyond a risk-based perspective and use ourmarket demand to catalyze investments andpartnerships that drive true impact. That is why
we set ourselves ambitious impact goals on aset of Key Performance Indicators (KPIs). These
relate directly to our focus impact areas, and wemeasure our progress towards positive impact
against these KPIs.

The industry’s impact on our world

9

We identified Company KPIs that are key
to our mission and impact agenda
Our mission:

KPI

1

KPI

Establish a market

2

By establishing a viable market for ethicalelectronics, we motivate the entire industry to

Motivate the industry

phonesin use vs. soldact more responsibly

3 steps of Fairphone’s theoryof change:
1. Raising awareness:
We uncover the complex supply chains
behind electronic products and communicate
transparently about it.

2. Setting the example:# phones sold4 impact areas:

KPI

Longevity

3

Circularity

phonesrecovered vs. sold

Sourcing fair materials
Good working conditions

We develop, produce and sell smartphones

KPI

4average % of focus
materials sustainably
sourcedthat are ethical and commercially successful.

3. Creating followers:
We motivate the industry to make caring forpeople and planet a standard part of doing
business.

Impact report 2020

KPI

KPI

# of people
benefitting from
Fairphone’s social
interventions

Industry influence
score #

5

6

10

2.
Our journey:

THE
FAIRPHONE
TIMELINE

2.1 Fairphone Origin Story
Fairphone started as anawareness campaign about
conflict minerals, but to makea bigger impact, we decided
to challenge the electronics
industry from within. Since
2013, we’ve been building abusiness with fairness at its
core. Today, we’ve proved thatit’s not just possible, it makes
economic sense.

Impact report 2020

Our journey: the Fairphone Timeline

11

From up-start
to scale up
Fairtrade gold
LaunchFairphone 1

LaunchFairphone 2

1st evermodularphone

World’s greenest
electronics
manufacturer

Conflict free tin
and tungsten

2015

2014

Fairphone founded
mid-2013 by
Bas van Abel

2016

Open Source
Androidversionpublished

Established
Worker Welfare
Fund in China
Conflict freetantalum

Impact report 20202017

Deutscher
Umweltpreis

65 FTE
25,000 devices
soldNew camera modules,
making the Fairphone 2
the first smartphone witha core functionality thatowners can upgrade
themselves

Our journey: the Fairphone Timeline

12Partnership with /e / Foundation
for an open-source operating system

Strategic partnershipwith Orange

Strategic partnershipwith Vodafone

In TimeMagazine’s
list of best
inventions

64 FTE
23,000 devices
sold

2018

2020

2019
LaunchFairphone 3€7M investment
round & €2.5M
crowdfunding todevelop FP3

Impact report 2020

68 FTE
54,000 devices
soldLaunch Fairphone 3+
Upgradeable camera

2021

Launch Fair
Cobalt Alliancewith a.o. Signify,
Glencore, and Tesla

95 FTE
95,000 devices
soldReachedprofitability
at scaleOur journey: the Fairphone Timeline13

2.2 2020 product highlight: The Fairphone 3+
The smartphone industry loves to pursue theBy providing spare parts at reasonable prices,

For our users, the star of the Fairphone 3+

densest pixel ratio, the fastest screen refresh

support and instructions for self-repair, andshow was, of course, the upgraded camera

rates, or the slimmest device. Marketingemphasizing that the most sustainable phone ismodule with a supersized sensor for smarter

campaigns tend to centre around “newer andalways the one that’s in your pocket, we enable

photos, faster autofocus and shutter speed, andshinier”, encouraging customers to discard

users to enjoy their phones longer.

higher definition video with boosted audio. We
were also able to increase the amount of fairtheir old, “outdated” phone. At Fairphone, wechoose a greener path: to make device longevity
and longer-lasting design a core value in our

Fairphone 3+: good news
for everyonematerials integrated into the supply chain of the
Fairphone 3+: we managed to fairly source 100%

When we announced the Fairphone 3+ inof cobalt under the mass-balance principle,

August 2020, it wasn’t just appealing for new

we used post-consumer recycled neodymium,customers; it was also good news for existing

and the Fairphone 3+ is made with 41% post-

Fairphone 3 users, thanks to our backwards

consumer recycled plastics — a big jump from

We are creating an alternative to the make-use-

compatible, upgradeable camera module. That

the 9% we were able to manage for the original

dispose trend by making modular smartphones

means current users only needed to buy a

Fairphone 3. The Fairphone 3+ also shipped withthat are durable and easy to repair. Fairphones

new camera module and replace it themselves

Android 10 to keep it going even longer.

are composed of separate modules combinedat home, easily and quickly to upgrade their

together - sort of like LEGO bricks - to makeexisting Fairphone 3 to the latest specs.

products.

Longer-lasting design =modular design

This was an exciting moment for us amidst theuncertainty of 2020. In 2017 the Fairphone 2 wasthe complete device. Users can easily repair orswap out a broken module at home - replacing

Extending a phone’s lifetime by 2-3 years,

the first smartphone to offer a camera upgrade

a cracked screen or upgrading the battery, forenormously reduces its environmental impact

module, and it was important to us to continue

example.

per year. According to our Life Cycle Analysis, it

this journey of modular upgrades, empowering

can lead to a 30% reduction of greenhouse gas

people to use their phones for longer. If theemissions per year of use, across the entire life

Fairphone 2 was a modular uprising, thecycle of the phone.

Fairphone 3 and 3+ are a full-blown modular
revolution. And to be able to pull this off during
the pandemic was a great achievement for our
entire team!

Impact report 2020

Our journey: the Fairphone Timeline

14

Fairphone 3+
Designed to last
World-leading modular
and repairable design

5.65 inch Full HD+ display
Sturdy, scratch-resistantGorilla Glass 5 screen

48MP and 16MP cameras
Optimized performance delivering
great image quality

Full-day battery life
3,040mAh capacity
and replaceable

Socially responsible
Living wage bonus forfactory workers

Fairly sourced & recycled materials
Made with up to 41% post-consumer
recycled plastics
Impact report 2020

15

3.1 Our impact
at a glance

3.
OUR
IMPACTon people and planet

IMPACT DASHBOARD: Our progress in 2020

Fairphone Impact KPIs 2020

Goal

Actual1# Phones Sold

110,373

94,9852% Phones in use vs. sold

68%

60.5%

3

% Phones recovered vs. sold

14%

18.1%

4

Average % of 8 focus materials
sustainably sourced

70%

56%

5

# People benefiting from
Fairphone’s social interventions

9.000

10.717

6

Industry influence score #18

31

Impact report 2020

Our impact on people and planet

Fairphone addresses nine
Sustainable Development Goals

16

3.2 Key
Performance
Indicators
Our progress against our KPIs this year reflects
our values and our long-term outlook: there’smuch to be proud of, much cause for hope, andmuch more to do.
Fairphone is scaling up, as a business anda brand. We are brimming with potential toamplify our impact. As we identify and shore
up the weak spots in the electronics industry,
we seek to continuously improve our own
performance, and to play our part in global
efforts to create a more liveable world. All of our
Key Performance Indicators contribute, directly
or indirectly, to the United Nations Sustainable
Development Goals - humanity’s collectively
agreed agenda for building a more just andsustainable future - and we invite our industry
colleagues to ensure their own goals align withthis important work.
We work hard to minimize the negative impacts
our product has on the planet, and to movethe electronics industry in a positive direction.
We’ve had lots of reaffirming moments over theyears, but in 2020, all that work truly paid off.

Impact report 2020

Our impact on people and planet

17

A. Establish a market
for ethical phones
KPI 1 : # Phones sold

125.000

KPI 1 : # Phones sold

Our sales numbers and profit margin are ourmost basic measurements of impact. Our
mission is to establish a viable market forethical phones. This KPI quantifies that. To havesuccessfully scaled up our business and achieved
profitability - all during a global pandemic -94.985is a wonderful moment for Fairphone, and a
proof-point for our business model. Motivating
our industry to move in a fairer direction will
only happen once more companies can see that
operating an ethical, sustainable business isboth scalable and profitable.

53.844

We make smartphones to create change: themore phones we sell and the more successful
our business, the more we can scale up andthe further our impact can reach. Financial
performance is the KPI that enables us to25.310achieve the rest of our goals, and we are

22.712extremely happy to report the 2020 figures here.
In 2021, we plan to build on this by setting evenmore ambitious sales goals.

2017

2018

2019

Target in 2020 was 110.000 devices

Impact report 2020

2020

2021

Our impact on people and planet

18

With restricted access to physical retail stores

Our normalized net result for 2020 is a profit

Reaching this moment was only possible

during 2020, there were limited in-person salesof €0.7 million, helped by a €2.0 million non-due to the hard work of the many, manyof the Fairphone 3, and later in the year, thecash tax effect. The final 2020 net result is €2.8

people who have participated in Fairphone’s

Fairphone 3+. Online sales partly made up for

million (2019: -€5.5 million). This tax effectjourney throughout the years, including thedecreased physical sales, but in countries suchcomes from accounting rules that require us toendorsement and support of early adopters andas Germany — a cornerstone of our customer

capitalize some of our historical losses to offset

customers who flocked to the idea of a fairer

base — consumers still prefer to buy in stores,

future corporate tax payments. For this reason

alternative. Achieving profitability isn’t just a

especially when considering a newer brand like

we also do not have to pay corporate tax on ourcompany milestone, it’s proof that profitability

Fairphone. We are therefore especially pleased

2020 profit. Fairphone decided not to distribute

doesn’t have to come at the expense of people

to have finished the year in the black, missing

any of the profit to shareholders to safeguard

and planet.

our pre-COVID sales goal, but performing

our cash position.

much better than expected relative to possible
pandemic scenarios.

To aid us in our reporting, we work with
We believe we can remain profitable and expect

Sustainalize to independently review the quality

to grow our revenue further in 2021. Reachingof the data collection behind our goals andSelling nearly 95.000 devices, and on top of thatprofitability is an important milestone forprogress indicators.

accesories, generated a revenue of €36 million

Fairphone. It clearly shows that there is a(2019: €19 million). Over the course of 2020,

market for fair and sustainable products, thataround 40% of our phone sales were via ourmany people will pay a premium for an ethicalwebsite, and 50-60% via partners. Our three top

product, and that there are no unsurmountablesales regions were Germany 41%, France 20%

technical or logistical barriers to the pursuit ofand Switzerland 10%. Sales for the second halffair materials and practices.

of 2020 were boosted by the successful launch of
Fairphone 3+ on August 27 2020.

Impact report 2020

Our impact on people and planet

19

B. Longevity:
creating products that last

Open-source software
for longevity and privacy

KPI 2: Phones in use vs. soldOpen-source software, with its freely available
source code, is a Fairphone hero when it comes

The challenge:

Fairphone’s approach:Every year, 1.4 billion phones are sold

Designing for longevity and repairability can bekeep smartphones going for longer. In the past,worldwide, while we throw millions away aftera game changer in the fight against e-waste andopen-source software has helped us increase the

an average of just 2.7 years. Most phones aren’temissions. Our modular design shows that doing

longevity of our phones, enabling us to provide

made to last or to be repaired, and long term

something unconventional can deliver major

software upgrades for many years. Free from thesoftware support remains the exception — it’sbenefits. It makes the Fairphone easy to open

constraints of centralized Android updates, open-

no wonder that e-waste is the world’s fastest

and repair, longer lasting, and therefore more

source software has allowed us to successfully

growing waste stream, with 50 million tons

sustainable. It’s an idea that’s gaining ground.

upgrade the then-3-year-old Fairphone 2 to Androidof e-waste produced per year. The majority

From the EU’s Circular Economy Action Plan

7 using open source and the existing hardware. Inof greenhouse gas emissions related toto the 2021 launch of the French Repairability

June of 2020 we put out a beta of Android 9, andsmartphones are caused during the production

Index, the message is clear. Modularity and thetogether with our community made Fairphone 2 theprocess. The independent experts at Fraunhofer

right to repair are on trend - Next to building a

only smartphone of this age to receive an upgrade

IZM reported that using a smartphone for five tophone that last, we also strive to provide spareon that operating system - while support fromseven years (rather than the average of 2.7) can

parts and software support for the Fairphone 3

chip-maker Qualcomm wasn’t available anymore.

reduce a phone’s related CO2 emissions per year

family until 5 years after launch.

to device longevity. It can be an essential tool to

by a whopping 28-40%. That’s why we focus on

We are always keen to find open-source solutions

device longevity, and empower our users to keep

for software challenges. During 2020, we asked ourtheir phones for longer.

community about their main concerns regarding
smartphone usage, and privacy rose to the top of
the list. In response, we teamed up with the /e/Foundation for an alternate open-source operating
system that also prioritizes user privacy - a perfectmatch!

Impact report 2020

Our impact on people and planet

20

2023 Longevity ambitions

2020 KPI 2: % Phones in use vs. sold

Going forward, this indicator will follow aslightly different approach, combining theactual current lifetime of our devices with users’
expectations on how long they will still keepusing their phones.

53.68%
Fairphone 2
only

58.68%
Fairphone 2
only

55.12%
Fairphone 2
and 3

60.5%

2020

2023

4.5 years

4.5 years

BASELINE

Fairphone 2,
3 and 3+

GOAL

Average of actual + expected years of usage FP3
2017

2018

2019

2020

This updated KPI is based on research which

Target 2020 was 68%

shows that emotional, physical, and technicaldurability all play a role in smartphone

In 2020, this indicator has been negatively

changed its underlying metrics twice during thelongevity. Fairphone is doing its best to

influenced by the lower than expected sales of

period we were gathering data. The numbers theempower the user to keep their phone for at

Fairphone 3. Since the total number of phones

targets were based on were therefore calculated

least 5 years. However, the final decision on how

remained small, the growing share of inactive

differently than those we measured, but in along a phone is kept is made by the user — or

Fairphone 2 units took on more significanceway that was invisible to us. We’ve had a freshby unfortunate circumstances. Think of theft,

than anticipated when the targets were set.

look both at how we set and measure this KPI for

loss, or damage through having a swim with

However, there were also data issues. We used

2023.

your phone in your pocket. Since the 4.5 years

two Google platforms to tally phones in use,

we aim for is an average accounting for all such

which could only recognize phones using ourincidents, we set ourselves a very ambitious

operating system. One of these platforms

target with 4,5 years in 2023.

Impact report 2020

Our impact on people and planet

21

C. Circularity: take-back, reuse and recycling
KPI 3: Phones recovered vs. sold
The challenge:a device should be repaired and reused forencourage others to do the same. We’re setting

E-waste is currently the world’s fastest growing

as long as possible, before being responsibly

ambitious goals for circularity through our take-waste stream, with tons of electronics being

recycled at the very end of its life cycle. This isn’tback program, while working to improve thedumped and left to corrode all over the world -just a good way to reduce e-waste — it keeps

mining industry through fair material sourcing.

especially in poorer countries. 17.4% of e-waste

the materials in smartphones at their highest

is collected for recycling. The remaining 82.6%

possible value, and it also reduces the amount of

We also partner with organizations “thatis unaccounted for, of which 7-20% is being

CO2 emitted by reducing the manufacturing ofcollect e-waste in African countries, while welegally or illegally exported, 8% discarded inbrand new phones.

encourage our customers to return their oldhousehold waste and the rest is unknown, with

devices in Europe. In 2020, Closing the Loop,

likely a large % being kept in in our drawers

While recycling is increasingly being pushed ascollected more than 5,000kg of batteries inat home. It is estimated that around 1.6 billion

THE way to address resource and environmental

Nigeria, that were then shipped to Europe forphones are simply abandoned in drawers andissues, it’s important to take a step back and see

safe recycling. This was one of the first examples

boxes in a perpetual limbo between use andthe reality of the situation. Recycling can neverin the world of reversing the e-waste flow from

disposal. Fairphone believes in the possibilities

recover 100% of all materials in an electronic

Europe to Africa. We have proved it is doable,of a circular economy that not only closes

device, meaning that recycling actually creates

and we encourage others to follow our lead in

the materials loop, but that is inclusive andits own waste stream. Indeed, as indicatedthis area.

contributes to the livelihoods of those in need.

in the first recyclability study conducted by
Fairphone, only 30% of the materials used in the

Fairphone’s approach:

Fairphone 2 can be recovered, even if the most

We do everything possible to keep materials

optimal recycling routes are applied. In a soon-at their highest value for as long as possible.

to-be published study, Fairphone 3 shows an

That includes materials research and strategic

improvement to more than 50%.

partnerships, incentivizing our customers
to give back old phones, and optimizing ourThis is one of the reasons why we prioritize

take-back and repair logistics. Our goal is toreuse over recycling. And, for many materials,

continuously move toward true circularity.

recycling will not be able to meet demand, so
the electronics industry will continue to rely on

Reuse is of crucial importance to circularity:

virgin mining by necessity. We want to narrowthat gap between demand and supply - andImpact report 2020

Our impact on people and planet

22

Through our Fairphone take-back service in2023 Circularity ambitions

the EU, we actively encourage users to send us

Our major circularity goal moving forward is totheir old smartphones or phones from otherbecome e-waste neutral, compensating 100% ofbrands, Fairphones and Fairphone modules. In

our product’s e-waste footprint?

2020 we successfully refurbished about 40%

2020of the smartphones that were collected via
the program in cooperation with our partner

BASELINE

2023
GOAL

Teqcycle. What cannot be reused is safely
recycled. In 2020 we set ourselves the target of44%
electronics
products takenback vs. newphones andspare parts soldcompensating for at least 14% of Fairphones
sold by collecting old devices through this takeback program. We are pleased to report that we
exceeded this goal.

KPI 3: % Phones recovered vs. sold in Europe

45%

100%
electronics
products takenback vs. newphones andspare parts soldAs part of this KPI, we won’t just be offsetting ourElectronic
end-of-use
products
taken backvs. new
phones andspare parts
sold: 45%

product e-waste; we’re integrating incentives forcustomers to participate in our Fairphone takeback program, and looking to increase the scopeof this program beyond smartphones to include
other e-waste too. We will continue to examine
additional solutions. These include further projects incooperation with Closing the Loop, collecting phones
in African countries in collaboration with those in the

18.1%

informal recycling sector. Currently, those phones
are shipped for responsible recycling to Europe.
However, in the mid-term we aim to support efficientand local recycling to enable local value creation from

0.52%

3.12%

2017

2018

Goal

4.57%
2019

Actual2020

2021

Target 2020 was 14% recovered

e-waste in these countries and a work environment
which is safer for people and planet.

Our impact on people and planet

23

D. Sourcing fair materials

KPI 4: Average % of 8 focus materials
sustainably sourced
The challenge:

8 focus materials in 2020

Everything that’s inside a smartphone has an
impact on people and planet. As global population

Cobalt

These 8 materials are contained in multiple

Neodymiumphone components, and with each component

grows, material demand is increasing daily. There

having its own supply chain, it’s not currently

is a limited supply of post-consumer recycledmaterials from electronics, so for some materials,

Copperrealistic to ethically and sustainably source 100%Plasticof these materials. Therefore, we focus on those

we will need to depend on the mining sector forcomponents with a high average content of ourdecades to come. From child labor and dangerous
working conditions to pollution and resourceGoldfocus materials to set a scalable example. For eachTinof the materials, we compare the weight we’ve

depletion, extracting the necessary materials
for a smartphone too often comes with serious
environmental and social consequences. At the

responsibly sourced to the total amount used in our
Lithium

phones.

Tungstensame time, mining is a key source of income formany people that live below or just above thepoverty line. If done in a responsible manner,mining can alleviate poverty and be a catalyst for

CopperCobalteconomic development in high resource, but low
income areas.

Fairphone’s approach:We’re modeling the fairer sourcing of materials in
our phone, with a particular focus on 8 materials

Tin
Gold

Plastic

Neodymiumthat resulted from our 2017 material scoping
study and that offer the electronics industry thegreatest potential to create positive impact.

Impact report 2020

Tungsten

LithiumOur impact on people and planet

24

While we progressed over our 2019 performance,

KPI 4: Average % of 8 focus
materials sustainably sourced

56%

32.75% 32.75%

2018

2017

Goal
ActualTarget 2020 was 70%

Impact report 2020

55%

Fair Materials
KPI updated- 14 focus
materials
sustainably
sourced32.75%

we underperformed on this indicator. We

During the COVID-19 pandemic, this impact

encountered more challenges than expected infocus area proved to be both a challenge andconvincing some of our component suppliers

an urgent necessity. In 2020, the Organisation

to approach their suppliers to seek alternativefor Economic Co-operation and Development

sources. Sometimes we had to go four, five, and(OECD) called on industry and civil society

six layers deep into a supplier’s own supply

to seize this difficult moment, to build backchain. And often there is no straight businessbetter and create a fairer future for all. Theycase for a sub-supplier to collaborate in thisurged the entire industry to heed the call forjourney, as we are usually the first clients todecisive action to support responsible mining

ask. This highlights the importance of scaling- particularly communities around artisanal

sustainable source suppliers and normalizing& small-scale mines (ASM). We are proud tothe expectation of, and demand for, sustainablecarry this banner forward, and to increase ourmaterial supply chains.

ambitions in this area.

Highlights for us in the realm of fair materials in

Fair Cobalt Alliance2020 include:

A particular highlight of our fair materials•

Increased use of post-consumer recycledwork in 2020 was the launch of the Fair Cobalt

plastics in Fairphone 3+ modules (50% -Alliance (FCA). The alliance aims to address75%) and covers (up to 50%).

child labor and hazardous working conditions in

100% of the neodymium used in thethe artisanal cobalt mining sector – some of themagnets found in our speakers is now

most critical issues in the cobalt supply chain –post-consumer recycled. 85% of the sameand improve the lives of mining communities inmaterial in our vibration motors is recycled

the Democratic Republic of Congo.

•

2019

2020

2021

as well.
•

Fairtrade certified gold was integrated in the

We help mining communities to remove theprinted circuit board, connector and camera

barriers to safe, responsible and prosperous

and speaker supplier of the Fairphone 3. In

mining, such as poverty and hazardous working

2020, with the launch of the Fairphone 3+

conditions. We identify improvements inside

we again integrated Fairtrade gold in ourand outside the mines, driving the supply of

new upgraded camera and speaker supply

fair cobalt by making mines safer and creating

chains.

decent working conditions.

Our impact on people and planet25

of children into school and after-school

Teaming up to fightchild labor in gold minessupervision – giving children and youth access

Since 2017 Fairphone and a consortium ofschool and/or are working, by helping themto education and vocational training.

partners have implemented an anti-child labor

reintegrate back into school. Results showedproject in Busia, Uganda. The aim was to workthat 65 children mainstreamed back into

The alliance will work with the government

together with an ASM community and support

school (primary/secondary/vocational),

to create a more diversified community withthem in combatting and preventing childwhile 86 young people received basic

greater choices. We will increase household

labor. In parallel, we aimed at establishing a

vocational training.

income by driving financial literacy,

sustainable, traceable gold supply chain thatencouraging alternative livelihoods andcreates a better future for miners and theirentrepreneurship.

families.

The FCA also supports the enrollment

2.

Motivation centers were set up to support
children and youth who dropped out of

3.

85% of miners surveyed positively changed
their attitudes and behavior towards

Fairphone and fellow FCA founding members

The project represented the first phase of achild labor as a result of project-relatedSignify, Huayou Cobalt and The Impact Facility,

larger effort and was completed in early 2021.

interventions.

were joined by industry allies like Tesla andThis first phase has taught us some important

Glencore, to launch this initiative.

lessons that we will take with us in the next

The continuous mine improvement plans,

4.

The main result at the supply chain level

phase and into other ASM improvement projects.

was the development of the Environmental,

Some of the results include:

Social and Corporate Governance (ESG)

drafted by Fairphone and the founding partners,

Performance & Risk Management Handbook

have been further built into an ASM Cobalt

for Artisanal & Small-Scale Mining.

Framework, which will be made available for

Increased knowledge among government

This handbook will serve continuous

public consultation in 2021. This sets a global,

officials on how to combat and prevent

improvement efforts at present and futurecommon expectation of how we could createchild labor has led to more involvement in

ASM projects.

a responsible, fair ASM Cobalt sector in the

improving ASM at the district and national

Democratic Republic of the Congo.

levels.

Impact report 2020

1.

Our impact on people and planet

26

While progress has been made, instances of child2023 Fair Materials ambitions

This means that our KPI related to fair materials

labor began to rise during 2020. There are many

We continually increase the amount of fair

will also be modified:contributing factors, the most relevant being thematerials in our phones. During 2020, we

COVID-19 pandemic (leading to school closures,conducted an extensive assessment in this area,for example). There has also been an increase

producing our updated Fair Material Sourcing

2020

in awareness and reporting of child labor

Roadmap. Based on this analysis and in light of

instances - which is actually positive, leading

our other impact ambitions, we are expanding

to an increase in identifying and intervening in

our list of focus materials from 8 to 14. Newly

child labor. Our efforts will continue with theadded to the list are: Silver, aluminium, nickel,

next phase of the project in the form of the Lakezinc, magnesium and indium.

BASELINE

56%
of 8 materials

2023
GOAL

70%
of 14 materials

Victoria Gold Program.

Our 14 focus materials up to 2023

Impact report 2020

CobaltNeodymium

SilverZinc

CopperPlastic

Aluminium

Magnesium

Gold

Tin

NickelIndiumLithiumTungstenOur impact on people and planet

E. Putting people first:
good working conditions
KPI 5: Good working conditions
The challenge:

27

Fairphone’s approach:In order to safeguard workers’ rights as reflected•

Alongside the strategic suppliersin the International Labour Organization’s

participating in our programs, Fairphone

Decent Work Agenda, and make sure the people

develops decent work impact plans based on

in our supply chain are protected and rewarded

independent, third-party worker surveys.

in a fair way, we work with our strategic supply•

Fairphone invests in training for employees

Over 18 million people work in the electronics

and manufacturing partners to progress toand management including worker voice

manufacturing industry and another 100

higher levels of maturity in providing goodand representation, effective dialogue,

million work in the mining of materials

working conditions. We also look into our own

health & safety.

used for that manufacturing. A single phonebuying behavior to ensure the factories incontains 50+ minerals and metals coming fromour supply chain are incentivized to support

During 2020, we onboarded two new suppliers

hundreds of mines, plus dozens of components

these practices. To make a lasting impact, we(for our Fairphone 3+ camera and speaker

manufactured by hundreds of suppliers. Thisgo beyond the traditional compliance model.

modules) to join our worker impact program.

means the phone that ends up in our hands has

Together with our strategic suppliers, we

In total, six suppliers participated in Fairphonegone through thousands of hands to make it.

develop worker-driven impact programs that

decent work impact programs in the areas ofincrease worker satisfaction and representation,living wage, worker satisfaction, worker voice

Unfortunately, the current “make, use, andand bridge the gap to a living wage. Thisand representation.

dispose” attitude and short product life cycles

translates to real-time improvements for manytranslates into a supply chain that is built on

workers in our supply chain:short term, volatile and highly competitive•

We paid a living wage bonus of US$1.85

business relationships. Making the people

per Fairphone to employees at our final

working within the system more vulnerable toassembly partner. In 2020, 500 people

exploitation or labor rights violations, especially

received a bonus of, on average, US$370.

in areas that are under-regulated, where

This is the equivalent of one month’s baseconflict occurs or where the workforce is highlysalary for front line workers.

dependent on migrant or temporary workers.

Impact report 2020

Our impact on people and planet

282023 Ambitions for goodworking conditions
KPI 5: # people benefiting from Fairphone’ssocial interventions

As of 2021, we have redefined this indicator
to measure suppliers with matured working

10.717

conditions rather than individual beneficiaries
only. This is done to also better reflect the status
and measure the progress made at the factory
level on a more frequent basis.

7.839
5.200

5.296

This KPI reflects how many individuals

2020

2023

45% of our strategic
manufacturers havejoined Fairphone’s
decent work programs

50% of our strategic
manufacturers havematuredBASELINE

GOAL

have benefited from Fairphone’s social,environmental and/or economic interventions
in mines and factories. While not included in this
KPI, family members and local communities also
experience benefits from our interventions.

2017

2018

2019

2020

Target 2020 was 9.000

The aim of this KPI is to drive long-term,
strategic partnerships with our suppliers toprovide incentives and support to transition
toward becoming a “fair factory”. This results
not only in better workplaces, it provides astrong business case for other factories to adopt
the model, and a proof of concept for a more
ethical factory floor.

Impact report 2020

Our impact on people and planet

F. Driving wider impact
within our industry
KPI 6: Industry influence score #The challenge:
Our aim is not to be the only producer of a fair29

Fairphone’s approach:
We actively encourage other companies to adopt

This can be, for example, a collaborative project

our methods, follow our lead, and work with us

between Fairphone and a specific industry player

in strategic partnerships to drive improvements(electronics or otherwise), industry players

in the industry. By working together, we

joining our lead in consortiums or alliances, or

can accelerate impact, and achieve greater

when another player in the electronics industry

transparency and broader systemic change.

adopts one of our methods or policies. The larger

phone, but to convince the entire industry to

the player, the more points assigned.

get on the trail we are blazing. As a positive

Influence is difficult to directly quantify. But

disruptor in the electronics space, it is clear to“if you can’t measure it, you can’t improveus that influencing other industry players is ourit.” We created a system to measure the results

main route to a fairer future. We know Fairphone

and impact when industry players follow

won’t improve the electronics industry by

Fairphone’s initiatives. We currently use adominating the smartphone market. Instead,system that assigns points to our partner-

we’ll improve it by showing there is a better

ships based on the size, influence andway of doing business that can be profitable andmarket value of the partners involved.

successful, influencing the whole industry tomove in a fairer direction.

2020
BASELINE

19 influence points.*[per new definition KPI]

2023
GOAL

50 influence points[accumulated 2017-2023]* The new definition: # of points scored on industry
players that apply one of Fairphones Thought Leadership solutions beyond our supply chain

Impact report 2020

31 influenceponts (withnewly 7companies in
FCA, 1 in Gold)KPI 6: Industry influence

6 influence
points[1 company inGold program& Industry
coalition
on material
scoping2017

10 influence
points[2 companies
on Fair Cobalt]

2018

13 influence
points[Industrycoalition on
worker voice
program]

2019

2020

Our impact on people and planet

30

Fair Cobalt Alliance
The launch of the Fair Cobalt Alliance as amultistakeholder action platform in 2020 is aperfect example of how we can drive wider impact
within our industry.
Fairphone is well placed to facilitate industry
players coming together to support fairer sourcing.
By working alongside fairness allies and bringing
together the entire supply chain, we are better able
to advance sustainable development in mining
communities. We can scale these efforts up muchfurther by creating new platforms and reaching out
to new partners.
By integrating fair cobalt into our supply chain,
we’ve set an example that anyone can follow tohelp create viable, scalable, industry-supported
and need-driven solutions to some of ASM’s mostpressing issues.

Impact report 2020

31

4.1 Impact individuals
coming together

4.
FAIRPHONE’SSTAKEHOLDERS

Fairphone users, just likeeveryone else, faced a tough2020. We’re so proud of therole our devices played in
keeping people connected.
Our customers play an
integral role in the growthof our business, and always
have — the Fairphone 1
was the product of a
crowdfunding campaign, andevery iteration of Fairphone
since has been a physicalrepresentation of ourcustomers’ needs and values.
Impact report 2020

Fairphone’s Stakeholders

2020 gave us more time to get even better32

On our social channels we asked the question:acquainted with some of the extraordinary
individuals who are proud Fairphone users. We
launched our Fairphone Ambassador Pogram,highlighting impactful people around the world
as Fairphone Ambassadors. These changemakers
are just as committed to a fairer future as we are.
They all contribute in their own meaningful and“How has the Fairphone, or ourstory, changed the way you look atother products?”
Here are a few of their responses:

powerful ways to a more sustainable world.
They also provide colorful answers to thequestion “What does a Fairphone advocate

Kiernan Scott

HannahNitschinger“You prove sustainability is doable andaffordable in nearly any area. Thank you!”

Gregory Urban“It’s changed my view on mobile/ business/ allproducts. We should be able to fix our phones,
they shouldn’t come from questionable labor“Wish it was available in Canada! Ethicallylook like?” They look like mountain runnerpractices or stolen resources. Fairphone is more

sourced products and ethical business practices

Pascal Egi and eleven-time world champion

than a device manufacturer - they’re improving

need to be more common in the technologicalarm wrestler Heidi Andersson. They look likehumanity while doing business, and that isfield. Right to repair has to become more

French entrepreneur Raphaël Masvigner andsomething to follow.”

prevalent. Hope to see some of the big industry

professional surfers Marlon Lipke and Gony

players following your lead and the field

Zubizarreta. They run rewilding projects likebecomes more circular and less linear.”Brais and Agnes, who travel only by foot, bike,and pack-raft into the wilderness. They help
get kids in Sierra Leone out of mines and into
schools, like Sander de Kramer. They create
stunning images of nature like Dana andStéphane of Le Monde de Tikal.

NiklasSchröder“Exceptionally glad when I found out Fairphone
exists. Never gonna buy an unfairly produced

Every person who has chosen a Fairphone is anphone again. Very happy with the one I currently

ambassador in some way. Buying a Fairphone ishave. Having found Fairphone marked thea clear signal of your personal values, and every

starting point of the period in my life where I

day, our customers inspire and motivate us tobegan to look at everything through the lense ofcontinue our efforts.

sustainability and ethical production.”

Impact report 2020

Kalpesh Patil“Talking about sustainability and implementing
it in reality are two different things, but theway Fairphone has adapted the practice ofsustainability not only in its products but also in
its operations is really commendable. Practices
like modular design, Fairtrade and absolutely nocompromises in the quality makes the Fairphone
so unique. Fairphone truly leading from thefront.”

Fairphone’s Stakeholders

33

4.2 Fairphone
Community ForumOur forum community is an integral part ofWalking the transparency talkthe Fairphone experience. It’s an extra line of
support for all our users, offering insightful tips

It’s one thing to share good news or humble-brag

were doing to solve the issue. It’s important to us toand tricks on everything Fairphone. They’ve

about positive project outcomes, but the truth isbe honest with our customers and industry peers:

built operating systems, acted as beta testers

that building an ethical smartphone company iswhat we are doing is not easy. We’re modeling aand have even custom-created their own

not without its ups and downs. Just a month after

whole new way to make and use products and,

Fairphone accessories!

the excitement of announcing the Fairphone 3+

as a scale-up, we’re punching above our weight inand our new phone modules, users began to reportdoing so - trials will always come with some error.

disruptive software issues with the Fairphone 3 andBy sharing our successes and challenges, we hope

3+. We formed an urgent response team to deal

to make the path towards fairness clearer for thosewith the issues, and after a lot of intense work,

who follow us.

we were able to address the majority of reported
problems. We continue to improve the operating
system with every software upgrade.
This is a perfect example of how our value oftransparency can play out in real life, beyond
sharing research and methodology: our CEO, Eva
Gouwens, joined Fairphone Angels to speak directly
to customers to keep them updated on the work we

Impact report 2020

Fairphone’s Stakeholders

34

4.3 Our staff:
Fairphone as an employer

The Fairphone TeamThe
Fairphone
TeamStaff
in NMBRS•
83.2
Full-time Equivalent•

83.2
Full-time
Equivalent (including
Staff
23
different
nationalities
Taiwan)•23 differentaged
nationalities
Taiwan)Employees
23 to 65 (including(average ageof 33,75)

Scaling up was the next step for Fairphone to

We improved our performance greatly in this•Employees
aged
23 to 65female(average
age of 33,75)
49.43%
male
to 50.57%
employees

take, to prove the resilience of our businessarea in 2020. We saw reduced sick leave in•

49.43%
50.57%
femaleon
employees
2femalemale
and to3 maledirectors
themodel. A challenging moment for any company,

2020, down to 4.7% to meet our target of < 5%.

•

2 female and 3team
male directors on the
management

managing to successfully scale up during a

Turnover in the Fairphone team was 1.15%.

•

management
team
A
7-person engineering
team in Taipei

pandemic was particularly gratifying. We’re

In our Q4 Pulse survey we achieved a positive•

A employees
7-person engineering
team in Taipei
3
in China supporting
the Impact

super proud of what our team pulled off together

Employer Net Promoter Score (i.e. staff who•

2 operations
employees
in China
who
Innovation
team,
the Supply
Chain
team andin 2020. There will always be work to do towould recommend working at Fairphone) of 7

continue adapting to employee needs and wishes

out of 10, employee happiness increased to 74%

and improving the way we work efficiently and(top 2 box). A positive work-life balance still

38 employees and interns joined the company

pleasantly together. To help us achieve that, we

remains low at 45%, with comments mentioningin 2020, with 4 relocating to the Netherlands.

have a quarterly, anonymous “Pulse Survey” todifficulties with working from home during

Since April, the vast majority have been working

measure a broad spectrum of things amongst

lockdown and high workload.

remotely.

coordinate
with team
our manufacturing
partnerstheEngineeringin Taipei

our employees like work pleasure, collaboration,clarity of goals & management, pride andWe are so proud of the incredible work put in by oursatisfaction with our office facilities.

profitable! It’s only thanks
team to make Fairphone impactful!
to their efforts that the company has been able toscale up and succeed.

Impact report 2020

Fairphone’s Stakeholders

35

4.4 Our industry:
suppliers, peers, NGOs and governments
A multistakeholder approach is key in our

To scale positive impact we actively participate

We are participating in these platforms in atheory of change and our fair sourcing strategy.

in network and industry initiatives. We shareway designed to create a larger impact with our

We work with our suppliers and other stake-our successes, challenges and lessons learned,

industry peers. For example, we are seated in theholders (such as our industry peers, nonprofits

while learning and adopting best practices

Board of Trustees of The Impact Facility, we co-and governments), to create coalitions thatfrom other industries and network players.

chair a working group on ASM at the Responsible

develop transparent fair supply chains which

We want to inspire the rest of the industry to

Mining Initiative and participate in the Circular

benefit workers and communities.

follow our approach — to examine opportunities

Materials Taskforce of the Responsible Businessfor positive impact, and to join us so we can,Alliance.

We also strive to create a level playing field

together, scale up the solutions that work.

between companies and individuals concernedand active in responsible sourcing. As a social

Fairphone is also an active member of:enterprise, we bring multiple stakeholders•

Responsible Business Alliance

together at the same table to discuss the•European Partnership for Responsible
Mineralsbest way forward. We want to influence andimprove legislation on responsible sourcing,•Responsible Minerals Initiative

repairability, durability, extended producer•

Clean Electronics Production Network

responsibility, circularity. And where legislation•

UN Global Compact

falls short, Fairphone aims to be an example that•

Dutch Agreement for Responsible Goldcan help guide policy makers towards a fairer•

Initiative for Responsible Mining Assurance

future.

•B Corporation•

Coöperatieve Circle Economy•

Social Enterprise NL

Impact report 2020

36

5.
DARE TOIMAGINE A
BETTER
FUTURE

So what’s next for Fairphone?
More ambitious goals. A newmaterials roadmap. A new
brand strategy that ramps up
our invitation to the electronics
industry to follow our lead,scale up our solutions, andbecome a force for positivechange.

Impact report 2020

Dare to imagine a better future

Fairphone Impact KPIs 2021

1

Sales - Phones sold (#)

37

2023
TargetDefinedyearlyOur KPIs include a focus on our future sales. The

And we’ll pay attention to our own work

more phones we sell, the more we demonstrateenvironment, improving team and organization,

the demand for fairer electronics. The more weand building on gains in happiness, efficiency,

prove our business model, the more partners

and trust.

and negotiating power we gain, and the more we
can invest in increasing our positive impact.

2

3

4

Longevity - Score (expected years ofFairphone 3 / + usage)

4.5

Circularity - Electronic end of use
products taken back vs. new phones
and spare parts sold100%

Fair material - 14 focus materials
sustainably sourced

70%

to all the supply chain partners and industry
We’ll build on the successes of 2020, continuing

peers out there. An invitation to get in touch

to scale up our operations, increasing our brandwith us to collaborate on making the industry

awareness. We plan continuing upgrades ofand our supply chain fairer, and to scale up the

hardware and software, and we’ll continue toinitiatives we’ve begun.

increase the use of fair materials.
We intend to expand the impact of the Fair
Cobalt Alliance, and invite other industry players

5

Fair factories - Strategic manufacturers >50%
with improved working conditions

6

Industry influence Followers Points scored on key industry players(#)

Impact report 2020

Our challenge to the industry is an invitation50

to join.

We’re not just here to makephones. We’re here to makea difference in the world.
And so can you.

38

APPENDIX

The aim of this Impact
Report is to communicate our
impact targets and results
to Fairphone’s stakeholders.
We want to demonstrate that
we’re modeling a fairer way of
doing business and motivate
other industry players to follow
suit. To that end, we makeour insights available to ourindustry peers, customers andwider community.

Impact report 2020

APPENDIX

39

we work to drive impact, and the company KPIs

In addition to these specific impact
focus areas, we also examined forinclusion:to which we hold ourselves accountable. You•

Our company and supplier CO2 emissions

can find an in-depth look at each of these focus•

Our suppliers’ environmental (waste andWithin the scope of this report are our impact
focus areas, which are the key areas in whichareas - and why they are important areas tomake positive change - in Chapter 4:water) management•

Our impact on people and planet.

We define our key impact focus
areas as:Fairphones’ team composition and wellbeing•

Financial results•

Company history•

Our suppliers’ due diligence and sourcing

1.

Establish a market for ethical phones.

2.

Longevity•

Our suppliers list

3.

Circularity•

Company values and culture

4.

Fair materials•

Fairphone governance

5.

Good working conditions

6.

Motivate the industry to act more
responsibly

Impact report 2020

policy and reportingAPPENDIX

40

So, what didn’t we address inthis document, and why?

Our strategic suppliers list:
Our strategic suppliers list is not included here
as it is available online in our supply chain due

CO2 emissions:
So far we focused on the greenhouse gas

What did we include and why?

diligence report, Supply Chain Engagement 2020.

Our impact KPIs:
Results and progress, as the backbone of ourbusiness and the main focus of this document.

emission footprint of our products andSourcing policy:

conducted detailed Life Cycle Analyses to find the

Our Fair Sourcing policy explains how, next

Company history:

hotspots we can directly influence through theto standard due diligence, we select our focus

To help visualize and map our progress.

design of the Fairphone. As of 2021, we redefinedmaterials and work with our strategic suppliers

our company KPIs and will measure the CO2

to create impact. As it is quite a long and detailed

reduction we achieve through our circularity

document, we decided to leave it out of thisand longevity efforts. Furthermore we plan toparticular report.

make an inventory of our Scope 1, 2 and 3 carbon
emissions over the course of 2021.

Governance set-up:
As a company claiming to have a noble mission

Suppliers’ environmental (waste/water) management:

to change our industry, it is important to betransparent about how decisions are made andOn this topic we request our suppliers to follow

who ‘pulls the strings’. In our audited annual

industry standards. It is not an area where we areaccounts, to which we apply the Dutch GAAP

actively driving change.

reporting standard, we report this set up. We
publish these accounts via the Chamber ofSuppliers’ due diligence:
This follows industry standards and is described

Commerce, open for everyone who is interested.

in our Fair Sourcing policy as well as inCompany values:

Fairphone’s Way of Working Together. As these

These are of vital importance to us. Our ethicaltwo documents can be easily accessed online, we

compass guides us in our daily work and in

don’t report on them here.

running the Fairphone business. Our mission
and values are stated here and throughout thecontent of our website.

Impact report 2020

Financial results:
As they are both crucial to Fairphone’s health asa business, and as a proof-point of our businessmodel.

Our team’s composition
and general wellbeing:
Fairphone’s achievements are only possible
thanks to our team, especially during this phaseof our scale up, and we are careful to take theteam’s makeup and wellness into account.

Change is in your hands

Questions, comments, input or
advice? You can always reach us at:
impact.innovation@fairphone.com