Published 13 hours ago
Submitted by Ericsson
Original publication in Ericsson’s 2021 Sustainability Report and Corporate Responsibility Report
Climate change is one the most pressing global challenges. Ericsson’s focus on energy and the environmental impact of technology continues to be important. It also continues to operate across the value chain in order for Ericsson to be resilient. Ericsson will continue meeting the demands of stakeholders and meet their expectations regarding transparency in relation to climate-related business impacts.
Approach to environmental sustainability
Ericsson aims to reduce the negative environmental impact of its entire value chain. The circular economy approach of Ericsson encompasses all aspects of design, manufacturing, and the use phase through reuse and product take-back. Ericsson has made significant investments to improve the portfolio’s energy efficiency. The Company’s efforts in environmental sustainability are divided into the following areas.
- Ericssons portfolio’s energy performance should be improved.
- Emissions reduction from Ericssons supply chain, and own activities.
- Circular economy is a way to design products and use materials in a sustainable manner.
- Demonstrating how Ericssons products and business can help society and other industries reduce emissions and become more circular.
Sustainability research
Ericssons sustainability efforts are based on science and research. Ericsson has contributed to many international standards in the field of environmental sustainability since 2008. The Company is committed to examining the environmental impacts of ICT sectors on both the direct as well as indirect levels. Ericsson contributes to the development international methodologies for assessing ICT sector’s environmental impact.
The International Telecommunication Union (ITU), has released the Net Zero standard to support ICT sector transition to a low-carbon economy.1) to guide companies in the sector on setting Net Zero targets and strategies. Ericsson contributed to the development and implementation of this standard that meets the requirements of UN Race to Zero Net Zero definitions and Science Based Target Initiative.
Ericssons Net Zero ambition
The company has committed to Net Zero.1), and in 2021 Ericsson officially set a long-term ambition to be Net Zero by 2040 across its value chain.
Ericsson is achieving its targets in line to the 1.5C ambitions set by the Paris Agreement in order to meet this ambition. Ericsson has reached a major milestone in achieving Net Zero emissions from its activities and reducing emissions by 50% by 2030. See Figure 1.
Figure 2 shows Ericssons carbon footprint as well as climate targets. The initial focus of the Company is to reduce and avoid emissions throughout the value chain, as well as invest in renewable energy. Ericsson will remove any remaining carbon dioxide from the atmosphere as a last resort in order to address unavoidable emission. 2) credits. Ericsson is committed building credibility in relation to its long-term goals in this area. This includes a focus on ownership and integration of its climate strategy into the line organization. The following Pages Ericssons covers performance, targets, and the actions required to reduce emissions at every stage of its value chain.
ICT is an enabler for climate action
Digitalization and ICT are key enablers in reducing global greenhouse gas emission. Ericssons research has shown that ICT solutions could enable a 15% reduction in emissions across industries by 2030.3While they are responsible for only 1.4% global carbon footprint,
Advocacy
Ericsson actively participates in consultations and hearings about strategies and legislative proposals presented to different legislative bodies. The EU Commission has always taken a proactive approach in environmental legislation. It is now intensifying its efforts through the EU Green Deal. The Company’s approach is to advocate clear environmental legal requirements that are based on science and that enhance the sector’s environmental performance.
Ericsson actively participates in industry associations such as Digital Europe and the Association of Swedish Engineering Industries. The Company also works with other organizations5) that are focused on global environmental standardization development.
Ericsson also engages with organizations such the World Economic Forum (the European CEO Alliance), the Exponential Roadmap Initiative (the Pathways Coalition, and the EU Green Digital Coalition) to communicate the advantages of digitalization in the transition towards a low carbon economy.
Ericsson was a supporter of the Paris Agreement from the beginning and recognizes that global warming must be limited to 1.5C as stated by the Intergovernmental Panel on Climate Change. The Company’s climate action strategy and target setting for itself and its industry is based on over two decades of sustainability research.
Ericsson performed a climate scenario analysis in 2021 in accordance with the Task Force on Climate-Related Financial Disclosuress (TCFD) in order to better understand climate-related risks, opportunities and risks that could affect its business model.
The analysis revealed that Ericsson’s main climate-related business opportunities are in providing customers with energy efficient networks, and expanding its connectivity offerings into other sectors to further reduce emissions. The main risks identified by the scenarios include carbon pricing, business disruptions due to physical risks like severe weather events, and other risks. You can find more details about this analysis and conclusions on page 33 of the in Ericsson’s Corporate Responsibility and Sustainability Report 2021.
Ericssons carbon footprint
Ericssons value chain has a carbon footprint and environmental impact. These are calculated based upon life-cycle assessments of products as well as extensive research into the impact of ICT industry. Figure 2 shows the total carbon footprint of Ericssons, in carbon dioxide equivalents (CO).2e). The impact is divided into four sections. Portfolio use (including products, software in operation); Supply chain (including product design and procurement; and own activities (including fleet cars, business travel and commuting); and Product Recycling (including end of life products that are reclaimed from customers and then repurposed).
Figure 2 shows that Ericssons delivered portfolio’s lifetime energy consumption resulted in carbon emissions of approximately 94%. Supply chain emissions accounted to 8% of the Companys total carbon footprint. Ericssons own activities contribute less than the two previous categories. They account for 0.4% total emissions. In 2021, the Company expanded its carbon neutral target for own operations into a Net Zero emissions target for own activities by 2030, including fleet vehicles, facilities, business travel and commuting/teleworking. The Company’s previous activities included product transportation. Now, it is moving to supply chain emissions.
Ericssons estimates that recycling its products at the end of their useful life contributes to lower supply chain emissions. This is because emissions from recovered raw material, such as aluminum are lower than from virgin raw material. As shown in Figure 2a, product recycling results is a negative share in Company emissions.
1)ITU L.1471 Net Zero standard
2) Carbon dioxide Removal, also known by negative CO2 emissions, refers to a process that removes carbon dioxide (CO2) from the atmosphere and locks it away for long periods. Companies can reduce their residual emissions, which cannot be reduced, using trusted technologies that conform to international standards.
3) J. Malmodin and P. Bergmark, 2015, Exploring the effect of ICT solutions on GHG emissions in 2030: https://www.atlantis-press. com/proceedings/ict4s-env-15/25836149.
Scope 1 (facilities, fleet vehicles), Scope 2 (facilities) and Scope 3 (employee travel and teleworking) are the categories.
5) The International Telecommunication Union, the European Telecommunications Standards Institute and the European Committee for Standardization and European Electrotechnical Committee for Standardization.
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