Closing the loop: Why circularity is core to Nokia’s business strategy

Waste not, profit more

At Nokia, we believe the circular economy is more than environmental stewardship, it is smart economics. The world’s traditional “take, make, dispose” model is being outpaced by soaring demand for connectivity, fluctuating raw-material prices, and tightening regulations. By recovering, refurbishing, and re-deploying network equipment, we reduce embodied emissions by up to 90% while extracting more value from existing assets.

This is not hypothetical. Globally, the circular economy is projected to generate $4.5 trillion in economic value by 2030, according to the World Economic Forum. For the telecoms industry, which faces high capital expenditure and supply-chain volatility, circularity can significantly improve cost efficiency. 

By incorporating refurbished and pre-owned assets into their networks, operators can meaningfully reduce capital expenditure. The GSMA suggests that sourcing even 20% of equipment needs from pre-owned assets optimizes operations and lowers costs. In short, less waste means more savings and more margin.

From E-Waste to economic value

The benefits are visible in our partnerships. In Egypt, we are working with Orange and the United Nations Industrial Development Organization (UNIDO) under the SWITCH2CE program to build a local market for refurbishing and recycling mobile and network equipment. 

By turning e-waste into economic value, this initiative supports Egypt’s ambition to recycle 25% of its waste by 2030, while creating new jobs and lowering environmental impact. For Orange and Nokia, it demonstrates how circularity can underpin stronger customer relationships and new revenue models.

This approach is becoming non-negotiable. Operators such as Orange and Deutsche Telekom have committed to embedding circularity across their businesses, with the latter targeting all of the IT/ network technology that they use to be recyclable by 2030. Nokia’s role is to enable these ambitions at scale. Our Circular Products and Services portfolio provides asset recovery, refurbishment, recycling, and reuse solutions designed to reduce costs and emissions simultaneously. Customers that embrace these services do more than meet compliance, they unlock competitive advantage.

The circular economy is not a cost center, it is a profit engine. The numbers speak for themselves. Recycling one tonne of network equipment can recover materials worth up to €15,000, while avoiding disposal costs. Meanwhile, refurbished hardware can be reintroduced into the market at a fraction of the price of new kit, creating savings that flow directly into operators’ bottom lines. That is why we have set a target to achieve 90% recyclability of aluminum in our mechanical part, and pledged 100% packaging to be recyclable by 2030. 

Full circle, full value

The future of connectivity will not be defined solely by bandwidth and latency; it will be judged on sustainability, resilience, and value creation. Circularity delivers on all three fronts. It insulates businesses from raw-material volatility, reduces capital and operational expenditure, and strengthens compliance with tightening environmental regulations. Just as importantly, it positions companies as leaders in a market where ESG performance is increasingly central in the procurement process.

For Nokia, the path is clear. Circularity must be the default in every engagement, an integral part of how we design, deliver, and support our products. The proof points are in place: refurbishment hubs that extend asset lifespans, recycling programs that recover high-value materials, and partnerships that create new ecosystems of sustainable growth. The task now is scale, and we are committed to work with our supply chain on that.

Our message to the industry is simple: circularity is not just good for the planet, it is good for business. Those who integrate it today will capture tomorrow’s growth, strengthen customer trust, and unlock new sources of value. At Nokia, we are committed to leading this transformation because in a circular economy, everyone gains.

Less waste. More value. Stronger business. That is the circular edge, and it is how Nokia intends to lead. 

Nokia has recently released its People and Planet Impact Report, which details the ways in which technology can have a positive impact on communities and businesses through sustainable investment. The report also includes a more detailed case study of our work with Orange, as well as several other examples as to how we are driving greater societal and economic value through responsible adoption of technology.

You can download the report here. For further information on Nokia’s approach to circularity you can also download Nokia’s sustainability statement here.