Tackling the SIM sustainability challenge

eSIM adoption is growing and driving a gradual decline in plastic-sourced SIM volumes, but physical cards will stay in circulation for years to come. Trusted Connectivity Alliance (TCA) data shows the total available market for removable and soldered SIMs reached 3.7 billion units in 2024, which keeps the sustainability question firmly on the table.

 

There is a clear business case to act because lower material use and smarter logistics cut cost, reduce risk and help meet ESG targets. With three quarters of the mobile industry’s emissions sitting in Scope 3, the supply chain is the main lever for progress.

 

 

Rethinking SIM design

Regulation is tightening and the direction is clear, making sustainable SIM design even more urgent. The EU Waste Framework Directive targets re-use and recycling of municipal waste at a minimum of 60% by weight in 2030 and 65% in 2035. It’s just one example of how regulatory pressure is mounting on industries to take accountability for environmental footprint, urging the manufacturing sector to rethink material use, waste management and product lifecycle.

 

For operators and their suppliers, switching from single-use plastics to recycled inputs helps on both compliance and cost. Industry data for 2024 also shows strong use of eco-friendly raw materials in SIM manufacturing, which makes these choices easier to adopt at scale.

 

Using 100% recycled acrylonitrile butadiene styrene (ABS) for card bodies is a practical step. It avoids virgin plastic and can be recycled again at end of life. Reducing card body size is another quick win. Innovations now enable formats that are up to 50% smaller than the original size. Less plastic means lower unit cost, less waste and lighter consignments.

 

That, in turn, trims CO2 emissions in the value chain and reduces fuel use in transport. The shift requires some upfront work in packaging and fulfilment, but the payback arrives through lower bill of materials, smaller storage footprints and simpler waste handling.

 

 

Streamlining supply chains

Sustainability does not stop at the factory gate. Nearshoring production reduces distance to market, which cuts transport emissions and shortens lead times.

 

Paired with renewable energy in manufacturing, nearshoring delivers a double benefit. Logistics can work smarter too because better planning reduces partial loads, consolidates routes and trims inventories. McKinsey analysis indicates that companies can cut logistics emissions by 40-50% by 2030 using tools that already exist. AI-led route optimisation then adds incremental gains in the mid-single digits by smoothing flows and improving asset use.

 

Shorter routes mean fewer delays and fewer write-offs, and circular practices add further savings. When operators collect unused or expired cards and return them to the manufacturer, materials can be recovered and re-used. This reduces disposal costs and demonstrates progress against waste targets.

 

 

The digital route

Making the SIM process digital removes plastic altogether. eSIMs, which are embedded in devices and provisioned remotely, eliminate card bodies, packaging and much of the distribution effort. That reduces materials, freight and handling while improving customer experience through faster activation and fewer stock-keeping units.

 

Integrated SIM, or iSIM, goes a step further by placing SIM functionality on an existing device chipset, which brings lower power needs for certain IoT use cases. iSIM is still early for broad deployment and remains best suited to specific low-power applications.

 

Progress in this area relies on both device compatibility and continued ecosystem adoption. To ensure practical implementation, a balanced strategy combines targeted iSIM pilot programs with a broader eSIM rollout. This approach maintains service continuity while gradually eliminating plastic from the system.

 

 

Driving global connectivity, sustainably

Physical SIMs will not disappear overnight, even as digital options advance. Not every device supports eSIM and some markets have restrictions, which makes action on today’s cards essential.

 

By adopting recycled materials, shrinking card bodies and optimising the logistics chain, operators can cut costs and emissions now and show progress against near-term goals. Change is practical and commercially sound, and it starts with design choices that lower material use and supply-chain decisions that reduce distance, time and cost. Taken together, those choices can support a more efficient and sustainable connected future.   

 

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Kevin van Staden is Head Northern Europe in the Connectivity & IoT Business at Giesecke+Devrient

 

Main image courtesy of iStockPhoto.com and ra-photos