How BT is building a circular economy and what small businesses can learn

02/04/2025 Anna Cole

From high street bakers to remote digital consultancies, small businesses are the backbone of the UK economy. For many businesses circular thinking is second nature – fixing, reusing, and finding value in what others throw away. 

Now there’s an opportunity for small businesses to build on these circular practices to drive growth. Circularity isn’t just about reducing waste. It’s about redesigning products, services, and supply chains to keep materials in use for longer.

Headshot of Chris Sims, Chief Commercial Officer in BT’s Business division

Chris Sims, Chief Commercial Officer, BT’s Business division

Chris Sims, Chief Commercial Officer in BT’s Business division, believes this is one of the most exciting shifts in how businesses operate. His team supports over one million customers across the UK and is helping them stay connected and grow — sustainably.

“For many small businesses, circular thinking isn’t new — it’s how they’ve always worked. Now it’s about scaling that instinct into a competitive advantage.”

Chris Sims, Chief Commercial Officer, BT Business Division

BT is on a mission to become a circular business by 2030 and to help create a fully circular tech and telco ecosystem by 2040, alongside its target to reach net zero by March 2031.

We asked Chris what being a circular business really means, and how small businesses can build on what they’re already doing to turn sustainability into a source of strength.

What does BT mean by ‘circular organisation’? 

At BT, we’re all about making smart, sustainable choices. Our circular business models focus on reducing waste and maximising resource use. Unlike the old-school “take, make, dispose” linear approach, circular models keep products and materials in use through:

  • Reusing: Giving equipment a second life
  • Remanufacturing: Cutting down the need for new materials
  • Recycling: Minimising waste and doing our bit for the planet

This isn’t just about being green; it’s about creating opportunities by treating waste as a resource. Circular businesses can:

  • open new income streams
  • reduce their reliance on raw materials
  • become more resilient in the face of rising prices
  • mitigate supply chain disruptions

What advice would you give to small businesses who want to go ‘circular’?

Circular business models are not just good for the planet, they’re good for business too. For small businesses, they can be a golden opportunity and powerful driver for growth. While large organisations like BT often need time to change, small businesses can move faster and adapt more easily.

There is a strategic, future-facing layer to the benefits of circularity — not just “being green,” but being ready for new supplier standards.

By adopting circular practices, small businesses can:

  1. Stand out in the market: Differentiate yourself from the competition by showcasing your commitment to sustainability – something customers, investors, and partners increasingly value. For example, offering repair services can build customer loyalty and generate extra income.
  2. Get ahead of supply chain requirements: As larger organisations move to decarbonise their supply chains, they’re bringing in stricter sustainability criteria for suppliers. By embedding circular practices now, you can stay ahead of those expectations — and position your business as a preferred, future-ready partner.
  3. Attract environmentally conscious customers: More consumers are looking to support businesses that align with their values. Being transparent about your circular practices can help you build loyalty and trust.
  4. Reduce running costs: Circular approaches like reusing materials, minimising waste, and extending the life of equipment can lead to significant cost savings over time. For example, using recycled materials can cut production costs.

Imagine turning waste into a resource, creating products that last longer, and fostering a loyal customer base that values your commitment to the environment. It’s a win-win!

What’s an example of a circular model that BT has implemented?

Electronic waste, or e-waste, generated from linear models is a major challenge for BT and the broader telecoms sector. E-waste includes discarded electronic devices with plugs or batteries. 

Europe produced a staggering 17.6 kg of e-waste per person in 2022 – the highest globally according to the United Nation’s Global E-Waste Monitor 2024. Despite Europe’s high recycling rate, nearly 60% of e-waste ends up in landfills or is improperly disposed of, posing environmental and health risks. 

People often associate telecoms companies with broadband routers. Each year, millions are provided to consumers and businesses across the UK. At BT, we’re focusing on how to make our broadband routers more circular, from how the hubs are made to how we get them back and re-use them.

How does BT keep broadband routers in circulation?

Here’s a peek at the three main steps we’ve taken:

  1. Working with our suppliers: We’ve set sustainability expectations for our suppliers. As a result, 95% of the router casing is now made from recycled plastic without increasing production costs.
  2. Improving packaging: Our Business Hubs are now housed in 100% recycled cardboard. We’ve removed plastic cable ties or device wraps, making the packaging completely recyclable.
  3. Making returns easy: When customers upgrade, we make it easy to return the old router with prepaid packaging and clear instructions. Returned routers go through a strict process: those that pass are refurbished and reused, those that don’t are fully recycled — none go to landfill.

Plus, because BT owns the routers, customers are effectively leasing them — a model that supports sustainability. To help maximise returns and keep valuable materials in use, we encourage customers to send their router back at the end of their contract. Most do — and that’s helping us accelerate the shift to a circular economy.

WiFi router on yellow background   “Our Business Hubs are now housed in 100% recycled cardboard.”

Nearly 30% of the routers we send out are refurbished, meaning we re-use more than we recycle.

What difference has a circular model made for BT?

Our circular approach has delivered real benefits, both for business and sustainability. Refurbishing routers costs around 80% less than buying new ones and cuts carbon emissions by 90%. In one year, our refurb programme saved an estimated 40,000 tonnes of CO2e compared to manufacturing new hubs.

Customers benefit too. Disposing of old electronic kit is a hassle, but returning devices is now easy and free. Refurbished routers perform just like new ones. Customers can’t tell the difference.

That’s a win-win situation. Are there any other BT circular models that are making an impact?

Absolutely! Customer demand for refurbished devices is growing. We’ve launched a refurbished phone offer, providing affordable handsets that are better for the planet. Our refurbished phones are compatible with eSIMs, eliminating the need for plastic SIM cards, while also reducing emissions impact. 

It’s about showing customers that making sustainable choices isn’t just about what’s good for the environment, it also makes good business sense.

What’s your advice to small businesses starting on their sustainability journey?

Start by reducing waste — it’s one of the easiest ways to begin. If changing your whole business model feels too overwhelming, try one small change first. Then build from there.

You can also find great advice on the UK Business Climate Hub. Plus, BT has partnered with Small Business Britain to offer sustainability training. These courses include practical advice and support from sustainability experts who understand small businesses.

Whatever you do, remember don’t let “perfection be the enemy of good”. Taking one step, and learning from it, is better than taking none. So, dive in, make that first change, and watch your business grow greener!

Relevant links

Contribute 

Please contact us if you’d like to contribute a thought leadership article to the UK Business Climate Hub.

 

Was this page useful?

Yes
No
Thanks for your feedback!
, , , , , , , , ,
Take part in the UK Net Zero Business Census
Take part in the UK Net Zero Business Census