What does Closing the Loop (CTL) mean when it says it 'compensates' phones, tablets, or laptops?

This means that a new electronic device (a device added to the market) is linked to the collection and responsible recycling of an equivalent amount of electronic waste. The waste is collected in countries where formal waste collection is lacking. That means that additional waste reduction is realized. This waste reduction is used to ‘compensate’ the new device, which then becomes waste-neutral. The service is also referred to as ‘One for One’.