Material Efficiency and Circularity

With respect to material efficiency and circularity – the second material topic in the area of environmental responsibility – the focus is on how IT hardware used by the Group itself and customer devices such as smartphones, tablets, and routers are handled. Approaches that will form part of a future overarching policy were already in place during the reporting period, but no overarching targets and goal have been defined as yet. It is planned to develop these in the course of future work on implementing the CSRD requirements . Information on existing measures and on the reuse of internally used IT equipment is disclosed in the subsections on this topic.

Since United Internet is an access and applications provider, its business with physical products primarily uses electronic devices and hardware. United Internet’s applications are developed either by it or together with partner organizations, and are run in the data centers that it owns or uses. By contrast, it primarily provides customers with information and communications technology (ICT) hardware – and especially devices such as smartphones and routers, tablets, laptops, web surfing hardware, and accessories – along with rate plans for using its mobile network and broadband services. Moreover, the expansion and operation of Germany’s fourth mobile network is leading to a need for greater resources. This comprises material for antenna components and masts, and the establishment of additional data centers. In addition, employees use IT hardware to perform their tasks.

As a result, material efficiency and circularity were identified as a material topic for United Internet during the 2022 materiality analysis. The focus here is on the environmental impact of its own and customers’ hardware. Manufacturing these entails the use of large volumes of raw and finished materials, some of which are only available in limited amounts at a global level (e.g., rare earths) and which entail energy-intensive extraction and processing. Their mining and manufacturing can also result in environmental pollution. What is more, extraction of these raw materials sometimes also entails the risk of potential violations of minimum social standards and human rights. The subsequent disposal of hardware and electronic components also involves a large number of environmental risks.

In view of this, United Internet aims to ensure that components and devices are used as efficiently as possible, and hence to conserve resources, minimize waste, and achieve a high level of reuse and recycling. United Internet has been taking a wide range of measures in this area for several years; the examples given below relate in particular to the Consumer Access Segment. How to handle end-user devices is also a relevant aspect for the Business Access Segment, and will be systematically enhanced in future. Although the segments have already implemented and will continue to implement a variety of individual measures designed to promote efficient resource usage, it was not possible to put an end-to-end, overarching policy in place in the reporting period due to limitations on time and resources. United Internet is taking the opportunity offered by preparations for future reporting requirements to discuss existing processes and responsibilities in the departments and at the service providers concerned, and to identify opportunities for capturing available data in this area. After this, the future management approach for the material topic of material efficiency and circularity will aim to further systematize existing activities and processes in all relevant segments, include clear targets and due diligence rules, set out corporate management’s involvement, define additional measures, and ensure their success is measurable and transparent.

Customer Hardware

The Circular Economy for End-user Devices in the Consumer Access Segment

The Consumer Access Segment embeds the principle of the circular economy in its internal business processes and along the entire value chain. This is achieved by refurbishing sold and returned customer hardware for resale.

Siehe See waste disposal and collection sites

Reuse of Customer Hardware

A number of 1&1 brands have been offering refurbished devices since 2019. The Reverse Logistics and Refurbishment team examines and tests all returned devices in the tablets, mobile devices, and laptops product groups in detail for reusability. Devices that meet all quality criteria at the end of this process – and especially with respect to their working order and data privacy – are equipped with the necessary accessories and can then be reintroduced onto the market with a 24-month guarantee. Devices that cannot be refurbished by 1&1 are passed on to an external service provider for repair or professional disposal.

1&1 also offers a trade-in campaign, with which customers can return used smartphones, tablets, and notebooks. More than 67,000 old devices were taken back in 2023 and were forwarded by 1&1 for recycling. Customers can hand back their old devices in return for a bonus when ordering new ones.

Where hardware is defective, customers can have them repaired and be loaned a device for the duration of the repair, returning it to 1&1 afterwards. Alternatively, customers can receive a new device direct in line with the rules governing 1&1’s exchange service. The defective device is returned to 1&1 or a certified repair service provider. Its functionality is then tested and any defects repaired as far as possible, after which the device may be refurbished. The goal is to prolong the life of the devices and prevent them from having to be scrapped for as long as possible.

This process led to a total of roughly 45,500 mobile devices, tablets, and laptops and roughly 128,000 DSL routers being returned to 1&1 or a certified repair service provider in 2023.

Handling Customer Devices in the Business Access Segment

A number of 1&1   Versatel services involve customer premises equipment (CPE) being installed on site or provided to customers for use. These technical devices and equipment generally remain 1&1   Versatel’s property. They are either deinstalled by 1&1   Versatel at the end of the contract period or handed back or returned to 1&1   Versatel.

1&1   Versatel has a long-term partnership with a specialized maintenance and logistics service provider to handle the logistics processes. This company’s core competencies include maintaining and refurbishing used electronic equipment. This makes it possible to reuse the devices and prolongs their life. In addition, it saves the energy and other resources needed to manufacture new products, avoiding the carbon emissions associated with this. The company uses a ISO 14001:2015-certified environmental management system to identify, monitor, and reduce potentially negative effects from environmental aspects. The service provider also established an ISO 9001:2015-certified quality management system to ensure that its own high quality standards are put into practice.

End-user devices that are returned by customers are stored by the service provider and their functionality tested as needed before they are redeployed. Devices whose life cycles that mean they can still be used are refurbished after testing. If it no longer makes sense to refurbish and deploy them, the components are sent for professional waste disposal. The logistics service provider works together with certified waste disposal companies that not only comply with data privacy requirements but also recycle the components.

The company’s European headquarters act as 1&1 Versatel’s incoming goods gate for all stockpiled components and all used and defective components that are returned to the logistics function. The company’s central logistics location reports a 100% recycling rate for packaging waste. All packaging used to return hardware is FSC-certified and includes a proportion of recycled cardboard. Wrapping paper is used as filler material in most cases, along with recycled cardboard packaging. To date, 1&1   Versatel has used specially branded PVC adhesive tape for its shipments. The goal is to switch to more environmentally friendly polypropylene adhesive tape in 2024.

Hardware in Data Centers and Office Buildings

For 13 years now, United Internet has ensured that some of its internally used servers and network devices that have reached the end of their service life are recycled in an environmentally sound way by passing them on to refurbishment specialist AfB gGmbH. This organization recycles them professionally or reclaims them for reuse, prolonging the life of the hardware and conserving resources. AfB is a dis-ability inclusion company; according to the figures that it has provided, roughly 42% of its current employees are people with disabilities. This means that United Internet does not just pass on its hardware to environmental and recycling experts, but also aims to enhance employment opportunities for people with disabilities.

AfB reclaimed or recycled the following volumes of old IT equipment for United Internet over the past three years: 

United Internet delivered roughly 105 tonnes of hardware to AfB in 2023, helping to save 843 tonnes of CO ₂ equivalents.

Efficient Transportation Packaging

Part of the Consumer Access Segment’s business involves providing customers with products such as smartphones and routers so they can use its services. This task is performed for all 1&1 Group brands by the company’s own logistics center in Montabaur.

The (outer) packaging material consists of 75–80% recycled material, while the shipping cartons are already made from 100% recycled material. Work is ongoing at present to switch all packaging and filler material to recyclable variants. Recycling of (secondary) packaging materials by service provider Landbell AG and by the “Duales System Deutschland GmbH – The Green Dot” led to the equivalent of 388.1 tonnes of carbon emissions being saved in 2023 (2022: 301.9 tonnes).