SlideShare a Scribd company logo
technology
forgood
ERICSSON SUSTAINABILITY AND
CORPORATE RESPONSIBILITY REPORT 2012
Mobility
Business
Respect
Perseverance
Professionalism
Environment
Diversity
Anti-corruption
Accessibility
Transparency
Responsible
Global
Solutions
Digital inclusion Engagement
Public-private partnership
Networked Society
Innovation
Advocacy
Development
Energy
Employee
Broadband
Ethics
Urbanization
Products
Services
Social media
Trust
Collaboration
Corporate
responsibility
Connectivity
ICT
Community
Human Rights
Cloud
Cyber security
SustainabilityLocal
Refugee reconnection
Peace
Education
Health
Livelihood
Smart grids
Supply chain
Cities
Climate change
Employee engagement
... redefining
learning and
education...
A CONNECTED
WORLD IS JUST
THE BEGINNING
Connecting
people is just
the start.
But what
does this mean
to me?
In the Networked
Society, connectivity
will be the starting
point for new ways
of innovating,
collaborating and
socializing.
Freedom,
empowerment,
and opportunity
It’s about bringing us
closer to our nearest
and dearest...
25% of smartphone
traffic and 40% of
tablet traffic is video
Source: Ericsson Mobility Report, 2012
... reuniting
loved ones...
Coursera hosts over 200 online courses
for nearly 1.3 million students
Source: BBC
The world
is getting
smaller.
It took 100 years to
connect 1 billion places and
25 years to connect
5 billion people
Source: Ericsson Mobility Report, 2012
By 2020 there will be
50 billionconnected devices – 6 for
every connected person
Source: Broadband Commission, 2012
185,000 people have
registered on Refugees
United’s family-tracing
platform
Source: Refugees United
A 1 percentage point
increase in broadband
penetration increases
new business registration
by 3.8%
Source: Stockholm School of Economics, 2012
For every 1,000 connections,
80 new jobs are created
Source: Ericsson and Arthur D Little,
2010-2011
Each minute:
– 100,000 tweets
– 48 hours of YouTube video
– 680,000 items shared on
Facebook
Source: thesocialskinny.com
... and creating
a world of
conversations.
It’s about
transforming
industries...
... by disrupting
established
business
models...
“Why shouldn’t the car be
connected? It’s the ultimate
mobile device.”
Paul Mascarenas,
CTO, Ford Motor
Company
Then: $10 = 1 CD
Now: $10 = over 20 million
songs streamed to your mobile
device using Spotify
... and by creating
new job
opportunities.
Broadband
= business
The Networked
Society will bring
significant economic,
social and environmental
benefits to hundreds of
millions of people.
It’s about
kick-starting
economies...
Doubling connection
speeds yields a 0.3
percentage point
increase in GDP
Source: Ericsson and Arthur D Little, 2010-2011
... banking the
unbanked...
Up to one-third of
Kenya’s GDP passes
through the mobile banking
platform M-PESA
Source: Tech Crunch
... and helping
solve some
huge global
challenges.
In 2020, ICT could reduce
oil consumption by 21.6
billion barrels
Source: GeSI SMARTer 2020 report
The Millennium Villages Project
has brought connectivity to over
500,000 people in 11 countries
in Sub-Saharan Africa
Source: EricssonSource: Ericsson
2 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
the ericsson
Vision
The Company’s vision is to be the prime driver in an all-
communicating world. Ericsson envisions a continued evolution,
from having connected 6 billion people to connecting 50 billion
“things”. The Company envisions that anything that can benefit
from being connected will be connected, mainly via mobile broad-
band in the Networked Society that is beginning to come to life.
CONTENT and INTRO
About Ericsson
Communication is changing the way we live and work. When
one person connects, his or her world changes. With everything
connected, our world changes. Ericsson plays a key role in this
evolution, using innovation to empower people, business, and
society. We are enabling the Networked Society with efficient real-
time solutions that allow us all to study, work, and live our lives
more freely, in sustainable societies. Since the company was
established in 1876, we have been a leader in telecommunication
and we are now expanding our role into an ICT (Information
and Communication Technology) solutions provider. Our offering
comprises services, software and infrastructure, mainly for
telecom operators. Some 40% of the world’s mobile traffic runs
through networks that are supplied by us. We provide solutions
and services to all major telecom operators in the world. The
networks we manage for operators serve about 950 million
subscribers.
Today we are more than 110,000 people serving customers in
more than 180 countries. Our business includes four segments:
Networks (the infrastructure that is the basis for all mobile
communication), Global Services (managed services, consulting,
and systems integration, customer support, network design and
optimization and network rollout), and Support Solutions
(software for operations support systems and business support
systems, TV and media management, and m-commerce). The
fourth segment is joint venture ST-Ericsson, offering modems and
ModAps (integrated modem and application processor platforms)
for handset and tablet manufacturers.
Contents
	 3
	 3
	4
	 4
	 5
	 6
	 7
	 8
10
11
12
20
28
34
42
48
51
52
54
The Ericsson vision
About Ericsson
Technology for Good
About this Report
Letter from the CEO
Taking a strategic approach
Managing our key issues
Taking a value chain perspective
Through the materiality lens
Engaging with stakeholders
Enabling communications for all
Reducing our environmental impact
Enabling a low-carbon economy
Conducting business responsibly
Leading with values
Measuring performance
Objectives and Achievements
joint venture
ST-Ericsson
Auditor’s Report
Memberships and Affiliations
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 3
about this report
External Assurance and GRI Application Level
This report has been assured by PwC according to Far
RevR6 (based on the international standard ISAE3000) and
AA1000, see Assurance Statement on pages 52-53. PwC
also performed a CO2
e audit on Ericsson's own emissions.
The GRI G3 guidelines have been used in compiling this
Report and a complete GRI compilation appears online.
Ericsson’s Sustainability and Corporate Responsibility Report
2012 has achieved an A+ application level, which means the
Report has been externally assured, and that the application
level has been checked by
a third party, PwC.
About this report
This report, together with additional information available online,
summarizes our 2012 sustainability and corporate responsibility
(CR) performance.
Sustainability and CR are central to Ericsson’s core business and
our commitment to the triple bottom line of responsible financial,
environmental and socio-economic performance. Corporate re-
sponsibility is about maintaining the necessary controls to mini-
mize risks, while creating positive impacts for our stakeholders
and our brand. A sustainable and responsible approach results in
value creation for the company, our employees, our customers,
our shareholders and society as a whole. Conducting business
responsibly through high standards in business ethics is a top
priority. We believe this approach delivers new business oppor-
tunities, more efficiency, less risk, greater brand value, market
leadership and attractiveness as an employer, and we describe
our progress in this report.
For 2012, for the first time we are reporting according to the UN
Global Compact (UNGC) Advanced Level criteria, which sets a
higher standard for reporting among UNGC signatories. Unless
otherwise stated, all information and data pertains to activities
undertaken from January 1, 2012 to December 31, 2012. The
report covers the Ericsson Group, i.e. Telefonaktiebolaget
LM Ericsson and its subsidiaries, and provides performance
highlights from our joint venture ST-Ericsson. The 2012 Ericsson
Annual Report provides information on Ericsson’s structure,
nature of ownership and legal form, subsidiaries, as well as
changes regarding size, structure, financial performance and
ownership during 2012.
The 2012 Annual Report and other financial information can be
found at www.ericsson.com/investors.
The Sustainability and CR Report is available in limited print and
can be downloaded from our website with additional content
online at www.ericsson.com/sustainability, including our Global
Reporting Initiative (GRI) performance summary.
To help us improve reporting and ensure transparency, we welcome
your feedback and questions on our report and performance.
Please email: corporate.responsibility@ericsson.com.
twitter@ericssonsustain
Technology for Good videos
(http://www.youtube.com/playlist?list=PL3DDD369426CF84BA)
Technology for Good photos
(www.flickr.com/photos/ericsson_images/collections)
www.ericsson.com/technology-for-good-blog
Technology for Good online pinboard
(www.pinterest.com/ericssonpins/technology-for-good/)
www.facebook.com/technologyforgood
Blog
technology for good
In the Networked Society, Ericsson is the leading advocate of
Technology for Good. Mobility and broadband will continue to
play a decisive role in the transformation of society, and in five
years we believe that 90% of the world’s population will have ac-
cess to mobile communication. With this scale, we are presented
with an unprecedented opportunity to help address global sus-
tainable development challenges.
By using broadband, cloud and mobility to address poverty,
education, health, human rights, climate change and other chal-
lenges, we work to ensure that our technology is a force for good
and lasting change. We do this through a wide range of projects,
research, advocacy and initiatives, public-private partnerships,
social media outreach and other forms of engagement. We focus
on the areas where we believe our company and our technology
can have the greatest impact on social, economic and environ-
mental development. Our approach is to use our core business
– our technology and our expertise – to increase the positive
impacts and minimize risks, where ever we operate in the world.
For more information, visit www.ericsson.com/sustainability.
We also welcome you to engage with us via our Technology for
Good blog, and to follow us on Facebook and Twitter.
For reporting of suspected violations of laws or the Ericsson
Code of Business Ethics, see reporting.violations@ericsson.com
Listen to many of our stakeholders and Ericsson experts
provide insight on topics discussed in this report. The videos
are available at the Technology for Good Youtube channel.
000-150
4 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
Dear Stakeholders,
The Networked Society presents enormous opportunities to
advance sustainable development. Our data shows that by 2017,
85% of the world’s population will have access to 3G mobile
communication and 50% will have access to 4G.This will dramati-
cally change the ways we can address many of the world’s global
sustainability challenges.
As an ICT industry leader, we align our sustainability and corporate
responsibility (CR) priorities with those set at the global level, like
the Millennium Development Goals. We are actively engaged in
shaping future sustainable development goals, through activities
around the Rio+20 UN Conference on Sustainable Development
and other discussions exploring the post-2015 development
agenda. We continue to support the ten principles of the UN
Global Compact providing a universal framework for business
conduct, and this year we are reporting according to Global
Compact Advanced.
Setting high ambitions
Sustainability and CR have been a natural part of Ericsson’s identity
and strategy since the days of our founder. Now, it is more important
than ever. As of 2012, our Vice President for Sustainability and
Corporate Responsibility Elaine Weidman-Grunewald reports
directly to me. For 2013, we elevated a Sustainability and CR
Leadership target to the Group’s top-level scorecard.
We set demanding targets and long-term objectives for our sus-
tainability and CR performance. In 2012 we achieved our five-year
carbon intensity reduction target a year early, and set new ambi-
tious targets on reducing the carbon footprint of our own activities.
By continuing to drive global standards and economies of scale,
combined with innovative public-private partnerships, we aim to
make mobile communications more affordable and accessible.
We also work to demonstrate the positive role of technology,
where it can shape low-carbon economies, increase access to
education, and support other humanitarian issues such as refugees,
peace and conflict resolution, and disaster response.
Focus on business ethics
Ericsson’s strong commitment to ethical business practices is
based on respect for internationally agreed principles. Our gover-
nance system ensures a consistent approach in how we run the
business. Openness, transparency, and accountability are central
to our long-term strategy and success and we recognize that
growth must be balanced with responsibility.
In 2012, Ericsson re-established a presence in Myanmar for the first
time since 1998, following ongoing political reforms. Our research
shows the clear positive benefits of mobile communications for
the people of Myanmar, but at the same time we must engage
responsibly in Myanmar with respect to human rights. In 2012,
we joined the Institute for Human Rights and Business initiative on
Myanmar and will work with the non-profit, human rights expert
group Shift over the next two years to strengthen our human rights
framework.
Engaged in the solutions
Different issues will rise in importance on the global agenda, which
is one of the main reasons I think Ericsson has a responsibility
to take a leading role in ongoing discussions. Some of the work
groups in which I am personally involved are the Broadband
Commission for Digital Development, and the Leadership Council
of the UN Sustainable Development Solutions Network, a multi-
stakeholder initiative formed in 2012 promoting a solutions-oriented
approach to the post-2015 development agenda.
Tackling the challenges
Technological developments are happening faster than ever and
will always come with challenges. We are involved in debate and
discussions in the areas most relevant for us. We constantly strive
to improve energy efficiency in our portfolio.The many positive
benefits of our technology includes fulfillment of human rights
such as freedom of expression, but unintended use of technology
can negatively impact those rights.Through multi-stakeholder dia-
logue and collaboration, we look for ways to secure ICT’s positive
benefits and minimize any negative impacts. In 2012, we worked
on further integrating the UN Guiding Principles on Business and
Human Rights into our business.
Vision and value
Sustainability and CR leadership offers significant value to our
business. It offers vision: Bringing affordable and accessible
communication to all reflects our 137-year history and unites our
110,000 employees. It demonstrates integrity and high ethics and
helps earn stakeholder trust. It enables a positive contribution to
the local economies where we operate, minimizes risks, offers a
competitive advantage and saves costs, not least in reducing our
environmental impact.
It is difficult to predict all the ways our technology will be used in
the future.Yet I am certain that as billions more begin to enjoy the
benefits of connectivity, we will identify new opportunities to in-
novate in ways that sustain our long-term business as well as help
us leverage the benefits of ICT for all.
Hans Vestberg
President and CEO Ericsson
letter FROM THE CEO
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 5
sustainability strategy
STRATEGIC, TARGET SETTING AND RISK MANAGEMENT CYCLEStrategic, target setting and risk management cycle
The annual strategic, target
setting and risk management
cycle is part of Ericsson’s
strategy process, which is well
established within the Group
and involves regions, business
units and Group functions.
Jan
Feb
Mar
Apr
JunJul
Aug
Sep
Oct
Nov
Dec
May
Q4 Q1
Q2Q3
Group Management Strategy directives
Quantitative and qualitative situation analysis
Board Target Approval
Review of one-year risks
Target Setting
Related risk identification and
mitigation (12-month horizon)
Region &
Account Planning
Board Strategy Approval
Review of long-term risks
Group Strategy Development
(five-year perspective)
Business unit & Group
function strategy planning
Strategic risk identification and mitigation
Global Leadership Summit on Strategy
Board quarterly risk monitoringNew Business
Development
Source: Ericsson
At Ericsson, sustainability and CR is a
strategic priority. We seek opportunities
to leverage our influence as a leader in
our sector to further sustainable develop-
ment. Supported by our strategy (see
box), we define sustainability as the suc-
cessful integration of social, environmen-
tal and economic issues in a triple bottom
line context:
•	 Social equity: Contributing to making
communications affordable and
accessible to all as a basic human need
•	 Environmental performance:
Demonstrating leadership and
responsibility in addressing our direct
and indirect environmental impacts,
and in enabling a low carbon economy
•	 Economic prosperity: Building on
sustainable business models and
alliances with stakeholders who share
our commitment
Corporate Responsibility is about main-
taining the necessary controls to minimize
risks to the business and the brand and
about being a good corporate citizen.
Integrating sustainability and CR
The Sustainability and CR Strategy is fully
integrated in the development of Ericsson’s
business strategy, target setting and risk
management (see illustration) and is
actively implemented across the busi-
ness. Continuous dialogue with external
and internal stakeholders helps prioritize
the issues most material for Ericsson.
Execution of the Strategy is measured at
1
Lead in energy and environmental performance for telecom networks
and services
Advocate the role of broadband in sustainable urbanization and in
shaping a low carbon economy
Drive the socio-economic value proposition of broadband and its role
in shaping society
Be the trusted partner among our stakeholders by managing
corporate responsibility business risks
Improve Ericsson’s own environmental performance
Taking a strategic approach
relevant levels according to target fulfill-
ment.
Our Sustainability Policy describes how
Ericsson strives towards excellent sus-
tainability performance, and the Ericsson
Code of Conduct policy includes our
commitment to the UN Global Compact
ten principles in the areas of human
rights, labor standards, environment
and anti-corruption. Ericsson’s Code of
Business Ethics summarizes the Group’s
basic policies and directives governing its
relationships internally, with its stakehold-
ers, and with others. It also sets out how
the Group works to achieve and maintain
its high ethical standards.
We focus on the sustainability and
corporate responsibility issues most
material to Ericsson, our sector and our
stakeholders, and we report on our
performance annually.
Driving results
The Ericsson Sustainability and CR Steering
Group, comprised of senior executives,
aligns sustainability and CR work within
Ericsson and approves the strategy,
objectives and targets. Annual targets
and long-term objectives support our
commitment. Each year, we report on
a range of objectives and achievements
within our most material issues
(see pages 48-50).
2
3
4
5
Ericsson’s sustainability
and cr strategy
Source: Ericsson
6 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
Managing our key issues
We prioritize sustainability and corporate responsibility issues
in terms of their importance to our business, our stakeholders,
society and the environment. These are determined through a
continuous process of review, consultation, and assessment
that takes its starting point in our sustainability strategy work,
and includes a materiality process (page 10), stakeholder
engagement (page 11), and the results of our Life-Cycle
Assessment (LCA) process.
In determining our key issues, Ericsson also considers relevant
reporting guidelines such as the Global Reporting Initiative,
industry commitments such as the UN Global Compact and
international standards and guidelines, such as the UN Guid-
ing Principles on Business and Human Rights, as well as the
Millennium Development Goals. Through this process we have
determined that our key material issues are:
Accessibility and affordability of mobile
communication
Increased accessibility and affordability of mobile communication can
contribute significantly to sustainable development by supporting
economic growth, health, education, quality of life, and more. Despite
over 6 billion mobile subscriptions worldwide, there is still work to be
done to ensure more equitable digital, social and financial inclusion,
particularly at the base of the pyramid (page 12).
Energy and material performance
By designing and manufacturing products and solutions with energy and
materials efficiency and reduced energy consumption, we can reduce our
own environmental footprint and that of our customers. We also place
great emphasis on reducing the carbon footprint of our own internal op-
erations. Other important focus areas are reducing energy consumption,
phasing out hazardous substances and improving transparency of conflict
minerals in our supply chain (page 20).
Climate change and urbanization
The ICT sector has significant potential to lead the transformation to a
low-carbon economy by offering solutions to reduce the 98% of carbon
emissions that come from other industries and sectors. We offer solutions
for smart grids, remote work, intelligent transport and other innovative
uses of ICT, and continue to raise awareness of this potential (page 28).
Business ethics

Good governance and business ethics are essential to responsible
business and enhance investor and customer confidence. High
environmental and social requirements apply to our global supply chain
and we believe that it is important that our business is conducted with
respect for universal human rights. Still, the Networked Society brings
new ethical dilemmas in terms of ICT’s impact on issues like privacy and
freedom of expression (page 34).
Employee engagement

With an engaged and diverse workforce that emphasizes leadership,
learning and values, we can better achieve our sustainability and CR aims,
attract and retain talented people, respond to our customers’ needs and
maintain a competitive advantage. Our vision is to build the best talent in
the industry. High health and safety standards are also a top priority (page 42).
managing our key issues
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 7
our value chain
Taking a value chain perspective
Sustainability and CR issues are addressed throughout our business operations and within
our sphere of influence, we consider both direct and indirect impacts. Further details are
found through out this report. In a value chain perspective, we map the key focus areas as
identified in our materiality process (see page 10) in each phase of our value chain. Through
stakeholder engagement we aim to leverage our influence and enhance value creation.
SUPPLY CHAIN
Own operations
Key focus areas
›› Responsible sourcing
›› Phase out hazardous substances
›› Trace conflict minerals
›› Reduce energy and CO2
e emissions
Key focus areas
›› Reducing energy and CO2
e emissions
›› Diversity
›› Ethical business
›› Occupational health and safety
Engagement
›› Energy efficiency forum
›› Joint Audit Committee of a number of customers
›› Standardization bodies on materials use, e.g., IEC*
›› EICC/GeSI* Conflict Minerals Working Group
Engagement
›› Solutions for green-certified buildings/renewable energy
›› Diversity initiatives.
›› Raised employee awareness of sustainability and CR
›› Integration of ethical business practices
Impact and value
›› CoC* performance improved by 50%
›› Improved dialogue on energy use and CO2
e
›› Increased transparency of conflict minerals
›› Driving higher materials standards
›› Lower reputational risks for Ericsson and stakeholders
Impact and value
›› Greater use of renewable energy in own facilities
›› Support market demand for renewable energy
›› More opportunities for women in ICT
›› Greater trust in Ericsson’s ethical business practices
›› Improved workplace safety culture
Keyfocus
areas
Engagement
Keyfocus
areas
Engagement
Impact and value
Impact and value
Ericsson value chain, Sustainability and CR Perspective
8 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
our value chain
End of life
treatment
Key focus areas
›› Carbon footprint & climate change
›› Energy and materials performance
›› Role of ICT in low-carbon economy
›› Human rights (unintended use of products)
›› ICT socio-economic impact
›› Radio waves and health
Key focus areas
›› Design for disassembly (low environmental impact)
›› Proper handling of e-waste*
›› Phase out of hazardous substances
Engagement
›› Optimize energy-efficient networks with operators
›› Solutions on wider societal challenges
›› Roll out Technology for Good programs*
›› Dialogue and guidelines on responsible use of ICT
›› Research on radio waves and health
Engagement
›› Promote proper e-waste handling with UN StEP* initiative
›› Raise standards among recyclers
›› Encourage greater uptake of proper e-waste handling
›› Partner to improve proper e-waste handling in markets
where lacking
Impact and value
›› Energy-efficient and low energy-consuming networks
›› Reduce negative environmental impact
›› ICT-enabled solutions to reduce carbon emissions
›› Reduced risk for unintended use of products
›› Greater knowledge on impact of radio waves and health
›› Greater digital and social inclusion
Impact and value
›› Improved e-waste handling
›› Harmonized global approach to e-waste handling
›› Strengthened requirements for recyclers
›› Safer handling of e-waste for workers/environment
Definitions
CoC = Code of Conduct
IEC = International Electrotechnical Commission
EICC = Electronic Industry Citizenship Coalition
GeSI = Global e-Sustainability Initiative
EC = European Commission Human Rights Sector Guidance Project/ICT industry
Technology for Good Programs = e.g., ConnectTo Learn, Ericsson Response, Refugees United
E-waste = Electrical and electronic waste
UN StEP = UN Solving the E-Waste Problem initiative
Products in use
Keyfocus
areas
Engagement
Keyfocus
areas
Engagement
Impact and value
Impact and value
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 9
materiality
1
2
3
4
5
Anti-corruption
Disaster response
CR risks assessment
Whistle-blower procedure
Human rights (Unintended use of ICT)
Throughthematerialitylens
MATERIALITY
26 13
8
2
3154
16
7
14
30
32
20
17
6
12
23
9
19
29
31
11
2210
25
34
28
21
24
15
18
33
35
27
Materiality
Assess and engage Actively address and engage
Assess
Address
Engage when appropriate
Conducting business responsibly Enabling communication for all Leading with values
Reducing our environmental impact Enabling Low-Carbon economy
Impact to Ericsson HIGHLOW
InteresttostakeholdersHIGH
Source: Ericsson
Materiality is the point at which a topic becomes relevant both
in the context of stakeholders’ interest and Ericsson’s strategic
priorities. The materiality map below is the result of a five-step
process in which Ericsson ranked an issue based on the degree
of interest to stakeholders and the impact to Ericsson’s business
to show where these issues align. This allows us to identify priori-
ties and align strategy and reporting with emerging stakeholder
expectations.
We first created a universe of topics based on investor surveys
and dialogue, customer requirements, employee priorities,
research, and trendmapping and grouped the topics according
to our key issues (see page 7). Next, the topics were weighted
from two perspectives: impact to Ericsson’s business (based on
risk assessments, our Life-Cycle Assessments, the Sustainability
Strategy process, Supplier Code of Conduct program, and re-
sults of internal and external audits of our management system)
and interest from our stakeholders (using a wide variety of in-
puts). Finally, internal sustainability experts analyzed the outcome
of the process, making adjustments based on their understand-
ing of stakeholder priorities and insight into the business.
This is the first time Ericsson applied this materiality process.
It will be conducted periodically and further refined to create a
method that best reflects the issues most relevant to Ericsson,
provides deeper insights into stakeholder expectations, and
allows materiality to be comparable over time.
Explanation to the table:
Assess: review and determine the importance of a topic
Address: direct efforts and attention to work with the topic
Engage: with stakeholders to address a topic
The materiality of the topic determines how it is covered in our
annual sustainability and CR reporting. The most material topics
are covered in this report or online.
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
Biodiversity
Emissions (effluents, air emissions other than GHG)
Environmental legal compliance
Waste management (office and production)
Water consumption
Ericsson carbon footprint and climate change
Product energy efficiency
Responsible land use
Use of renewable energy
Hazardous substances avoidance
Efficient use of materials (excluding hazardous)
ICT contribution to low-carbon economy
ICT socio-economic impact
Product information and labeling
Energy consumption (Ericsson own activities)
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Cybersecurity
Radio waves and public health
Child labor
Information security and privacy
Forced labor
Freedom of association
Policy engagement and advocacy
Responsible sourcing
Access to education
Digital inclusion
Tracing of conflict minerals
Diversity and non-discrimination
Occupational health and safety
Employee engagement
Electrical and electronic waste management
Source: Ericsson
10 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
stakeholder engagements
engaging with stakeholders
Addressing sustainability and corporate
responsibility issues in an effective way
requires engagement with a wide range
of stakeholders, including customers,
employees, investors, suppliers, industry
partners, government, consumer and
business users of telecommunications
services, non-governmental organiza-
tions, standardization bodies, research
institutes, and media. Through collabora-
tion we seek to understand their views
and incorporate their feedback into our
ways of working, so that we can arrive at
better solutions to address challenges.
To understand how stakeholders perceive
us on sustainability and CR issues, we
conduct surveys with employees,
customers and investors. We also put
effort into responding to surveys of
others, including investors, NGOs and
customers, and pay close attention to
improving our rankings. We engage with
customers regularly on many issues,
including supply chain management,
energy efficiency, and our Technology for
Good programs.
Here we present a snapshot of some key
stakeholder engagement activities during
2012. For more examples, visit
www.ericsson.com/sustainability.
Sustainability and CR briefings
for investors
Increasingly mainstream, as well as
Socially Responsible Investors seek
increased insights into how companies
manage sustainability and corporate
responsibility, particularly in regard to
long- and short-term risks affecting the
business. Ericsson meets with investors
regularly, and provides information on our
strategy and approach, risk management,
anti-corruption program, handling of
human rights and sales compliance
50
40
30
10
20
0
Technology for Good
Health and safety and Code of Conduct
Renewable energy
Human rights
Employees rank top sustainability issues 2012
Percent
4748
44
39
41
50
40
30
10
20
0
Technology for Good
Health and safety and Code of Conduct
Renewable energy
Human rights
Enabling low-carbon economy
Source: Ericsson
Employees rank top sustainability issues 2012
Percent
4748
44
39
41
Employees rank top
sustainability issues
2012
Each year we conduct a detailed employee
survey to assess employees’ views on the
sustainability issues they consider the most
relevant for Ericsson to focus on. A total of
3,633 employees participated in 2012.
(See graph for results in percent).
Shift listens to stake-
holders on human rights
•	 Strengthening the police or
military’s control over villages
•	 Crony and/or corrupt
subcontractors
•	 Land-grabbing associated with ICT
network coverage
•	 Forced labor associated with
public infrastructure
•	 Lack of grievance channels
•	 Security crackdown on public
protests
•	 Privacy crackdowns linked to
the internet
•	 Increased corruption and
discrimination around access to ICT
processes, among other issues. We answer
many investor surveys and strive to report
in a thorough and transparent manner.
Supplier forum on carbon emissions
Ericsson held a forum with selected key
suppliers to discuss energy efficiency and
greenhouse gas emissions, since suppliers
play an important role in helping Ericsson
to reduce our indirect emissions.The fo-
rum enabled sharing of best practices and
focused on challenges related to reducing,
measuring and reporting greenhouse gas
emissions and established networks for
knowledge sharing and joint initiatives.
Channeling social media
The increasing importance of the role of
social media in sustainable development
discussions was evident at two events
in which Ericsson was a key partner:
Rio+Social, held in conjunction with the
UN Sustainable Development Conference
(Rio+20), and the Social Good Summit,
in conjunction with the UN General As-
sembly annual meeting in NewYork. Both
offered platforms to engage a wide audi-
ence on global challenges. Other partners
included Mashable, the UN Foundation,
the 92nd
StreetY, the UN Development
Programme, and the Bill and Melinda
Gates Foundation. For more, visit
www.ericsson.com/sustainability.
Listen to bloggers at the
Social Good Summit talk about
technology as a force for good.
Ericsson has engaged in a Business Learning Program on Human Rights with the
non-profit centre Shift (see pages 36, 38). As part of its independent research,
Shift undertook a recent trip to Myanmar where it conducted approximately 100
interviews and identified a number of concerns among communities and ethnic
groups related to companies entering Myanmar. A number of these were specific
to the ICT industry. Discussions with these local stakeholders will be an impor-
tant part of Ericsson’s own human rights due diligence both before and during its
business operations in Myanmar. Ericsson will carefully consider these and other
risks to human rights:
Read more at www.shiftproject.org
Source: Ericsson
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 11
From increasing GDP growth and boosting livelihoods to enhancing access to education
and health, ICT is a powerful way to unlock the full economic potential of developing nations.
Our strategy is to drive the socio-economic value of mobile broadband to shape a world
where everyone can benefit from the Networked Society. Together with partners, we drive
initiatives and innovative solutions that address our most pressing global challenges, in line
with the Millennium Development Goals.
enabling communications for all
enabling COMMUNICATIONs
FORALL
12 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
enabling communications for all
Broadband penetration has been proven to have a significant
effect on economic development. Every 10% increase in broad-
band penetration is shown on average to deliver a GDP growth of
1%. Furthermore, 80 jobs are created for every 1000 broadband
connections. Doubling the broadband speed increases GDP by
0.3%, according to a study of 33 OECD countries conducted by
Ericsson, Arthur D. Little and Chalmers University.
The potential is evident, and billions have benefited from the con-
tinued growth of the industry. The challenge is to unlock it for the
benefit of the “last billion” users at the base of the pyramid.
While broadband is getting more affordable, and one-third of
the world can now get online, many are not part of the digital
age, according to the State of Broadband 2012: Achieving Digital
Inclusion for All, a report from the Broadband Commission for
Digital Development to which Ericsson contributed. Currently
20% of households in developing countries have Internet access,
a figure the Broadband Commission wants to double by 2015.
Connecting the last billion
Listen to Dr. Hamadoun Touré, Secretary General
of the ITU talk about the state of broadband.
A collaborative approach
For many years, Ericsson has committed to support the achieve-
ment of the Millennium Development Goals (MDGs) by promoting
affordable access to telecoms. Ericsson’s approach of enabling
communications is built on these pillars:
•	 Initiatives linked to our core business
•	 Public-private partnerships for higher quality, relevance,
reach and outcome
•	 Customer engagement to leverage shared value
•	 Sustainable, scalable business models for long-term impact
•	 Measuring and monitoring impact
One of the first examples where Ericsson put this approach into
action was as lead telecom partner in the Millennium Villages
Project, together with the Earth Institute at Columbia University
and Millennium Promise, where we wanted to show that connec-
tivity could play a decisive role in fighting poverty in Africa.
Today, more than half a million people in eleven countries in
sub-Saharan Africa are benefiting from mobile connectivity
through the project, improving access to health and education
and boosting livelihoods, among other benefits.
…by making
education available
to everyone…
Communications
for all
We believe that connectivity is a
starting point for economic growth
and improved quality of life.
Connectivity
is improving
livelihoods…
…by fostering
peace and
reconnecting
families…
…and by
supporting
disaster-relief
efforts.
To date Connect To Learn
has brought 21st-century
education to 33 schools
around the world
…by bridging the
digital divide…
For every 10% increase
in broadband penetration,
GDP increases by
one percentage point
Source: Ericsson and Arthur D. Little, 2010-2011
185,000 people have registered on the
Refugees United mobile platform
There are 43 million refugees worldwide
Source: Refugees United and UNHCR
Ericsson Response
volunteers have assisted
in more than 40 relief
efforts in 30 countries
over the past 12 years
About 2.5 billion people
worldwide are unbanked
– yet 1.7 billion of them
have mobile phones with
the potential to access
m-commerce services
Source: World Bank
Source: Ericsson
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 13
enabling communications for all
The world as the classroom
About 70% of girls in some sub-Saharan
countries never get a secondary educa-
tion. Education is a powerful tool to end
poverty and secure a productive life.
According to UNESCO, one extra year of
schooling increases an individual’s earn-
ings by up to 10%. For young people in
Africa and other developing regions, ICT
can have a transformational role in scaling
up access to quality education through
innovative programs, such as cloud-
based curricula and school-to-school
connectivity.
Three-fold mission
In response to the challenges of access
and inequality in secondary education,
and in support of UNESCO’s Education
for All goals, Connect To Learn was
launched in 2010 by Ericsson, Columbia
University’s Earth Institute and Millennium
Promise. Connect To Learn is aimed at
enhancing education in the Millennium
Villages of sub-Saharan Africa and has
a three-fold mission to provide:
•	 Quality learning and teaching
resources through mobile broadband
connectivity
•	 Improved access to secondary
education by providing scholarships
and other support to girls
•	 A global advocacy platform for the
importance of quality education
While the Millennium Development Goals
have been focused on primary education,
and have made considerable progress to
date, Ericsson and partners identified a
gap in secondary education. According to
UNESCO, 200 million young people lack
basic literacy and numeracy skills
essential to learning further skills for work.
As well as addressing these basic skills
gaps, ICT also provides access to
CONNECT TO LEARN
10,000
15,000
5,000
0
Connect To Learn
Number of students
2,876
5,210
9,237
16,034
H2
2011
H1
2011
H1
2012
H2
2012
Source: Ericsson
Connect To Learn is opening the door to a new world of knowledge and possibility.
Listen to Connect to Learn
scholar Kusi Hagar of Ghana.
21st century skills necessary for the
knowledge society.
As of 2012, ConnectTo Learn’s ICT program
was established in twelve schools in
Millennium Villages in six countries:
Ghana, Tanzania, Kenya, Uganda, Malawi
and Senegal, and during 2013 Ericsson
will continue to expand ConnectTo Learn’s
ICT program in the Millennium Villages.
Extending the reach
Building on the success of Connect To
Learn in Africa, new ICT programs were
started in schools in Djibouti, Brazil,
Chile, South Sudan, Uganda, India and
China. Ericsson is working with the gov-
ernment of Guandong and China Mobile
to bring cloud computing-based learning
to schools in that region.
As of the end of 2012, over 15,000
students globally were benefitting from
Ericsson’s ICT programs, more than three
times the number in 2011.
Collaborative action
A collaborative action research study
together with the Earth Institute is look-
ing at developing an intervention model
to overcome challenges and barriers in
implementing ICT programs in schools
in resource-poor settings. The findings,
available in 2013, will be used as input
to future development of the program.
See also www.connecttolearn.org.
Source: Ericsson
14 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
enabling communications for all
For refugees,
a chance at
reconnection
Ericsson has supported humanitarian situations actively since
2000, but first became involved in the refugee issue in 2007,
when we assisted the United Nations High Commissioner for
Refugees (UNHCR) in providing connectivity to two refugee
settlements in northern Uganda.
Globally, UNHCR estimates that there are more than 43 million
people forcibly displaced by conflict or persecution. UNHCR is
actively seeking solutions for these underserved populations, who
could benefit significantly from greater access to communications.
In 2010, Ericsson representatives met David and Christopher
Mikkelsen, founders of Refugees United, who had developed an
online family reconnection service to help refugees locate loved
ones separated by war, conflict, famine or natural disasters.
However, at that time, less than 2% of their target population had
access to computers and Internet, while some 40% had access
to mobile phones. Ericsson assisted Refugees United with the
development and deployment of a mobile phone application to
further support reconnections.
The service includes a SMS message and WAP version to suit
low-bandwidth phones and needs of the users, and specifically
adapted mobile applications for the search service, taking into
account illiteracy, privacy, low bandwidth, cost, language and trust.
Registrations tripled in 2012
The number of refugees registered for the service more than tripled
in 2012, and marked 185,000 registrations by the start of 2013.
With the urgent need for more outreach, the long-term objective
is for 1 million refugees to actively use the service by 2015.
Thanks to extensive awareness raising activities, new methods
of community outreach, and the support of mobile operators
(including Safaricom in Kenya, MTN in Uganda and Vodafone in
Egypt), about 100 families have been reconnected. According to
Refugees United the number may be higher; since the service is
REFUGEES UNITED
150,000
200,000
100,000
50,000
0
Refugees United
Number of refugees registered
6,100
152,420
90,475
65,000
174,652
183,292
20112010 2012
Q2
2012
Q1
2012
Q3
2012
Q4
Source: Refugees United
Erika, 30, is looking for Cecilia.
Erika is from Ogujebe.
After five years these two sisters were united with the help of
a borrowed phone and an online database.
Ben Mori, 30 is looking for David.
Ben came from South Sudan in 1991.
185,000refugees were registered on the Refugees United
platform at the start of 2013. A long-term
objective is 1 million by 2015.
Listen to Christopher Mikkelsen of Refugees United
talk about the aim to reach 1 million refugees.
anonymous, and not every refugee who makes a reconnection
wants to be reported.
Part of the reason for the increased momentum in 2012 was the
launch of the first radio campaign in one of the world’s largest
refugee settlements in Dadaab, Kenya. In partnership with MTN
Uganda and the UNHCR, Refugees United sent out its first SMS
campaign, specifically targeting refugees in the southern and
northern parts of Uganda with information about the service.
Many families were reconnected as a result. In Kampala and Nairobi,
information about the mobile app is provided at registration
booths run by UNHCR personnel. We are aiming to deploy the service
in many more countries in 2013. For more, visit www.refunite.org.
Listen to Refugee United volunteer Bahati’s story
of how he helped two sisters reconnect.
Source: Refugees United
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 15
enabling communications for all
Amazon gets good signals
Connectivity is bringing positive social and economic changes to
the people of the remote Belterra region in the Brazilian Amazon,
where over 30,000 people in some 175 communities along the
Tapajós River now benefit from mobile broadband for the first
time. The digital inclusion program began in 2009 as a partner-
ship between Ericsson, mobile operator Telefonica|Vivo, and the
non-profit organization Saude & Alegria.
Ripple effect
By 2010, changes precipitated by the connectivity services were
already apparent. Most significantly, the region’s Abaré floating
hospital boat was 3G enabled, allowing patients to get second
opinions and collaborative diagnoses from outside medical
specialists. Recognizing the positive benefits of the Abaré boat,
local governments have also initiated a program to launch 100
additional river hospital boats, and a third of these boats are
funded and scheduled for operation. Today the Abaré boat is
not only a travelling health resource but also serves as a floating
teaching hospital.
Livelihoods got a boost as well, for example, a family bread-and-
honey business was able to receive crucial pre-orders via mobile
phone before making long-distance trips to the market to sell
their goods.
In 2011 the partners expanded the 3G coverage to an extremely
remote community, with an off-grid site in Sururacá village,
situated on the other side of the Tapajos river, within a nature
reserve of the Amazonia National Park. By 2012, the new
computers and Internet access allowed students at João
Franco Sarmento school to benefit from virtual classes given by
volunteers, including Ericsson employees, and to connect
remotely with other students in Rio.
In a 2012 survey, the majority of respondents from Belterra noted
increased entrepreneurial activity and job creation as a result of
telephony services; 90% of respondents said they believed the
new services have had a positive role in regional development.
Listen to school director Raimunda Bentes Martinho of
the Suruacá Community in the Amazon talk about connecting
her classroom for the first time.
The 3G enabled hospital boat makes it possible for villagers in the Amazon
to consult with outside specialists. It is also a floating teaching hospital.
Telefonica|Vivo and Ericsson accept the 2013 Global Mobile Award for Best
Mobile Product, Initiative or Service for Emerging Markets.
The Amazon, one of the most bio-diverse areas on the planet,
is a vast region that spans across eight rapidly developing
countries with a population of more than 25 million people.
For the inhabitants of Belterra, mobile broadband has had
significant impact on daily life.
16 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
enabling communications for all
Powering peace
Conflict and lack of peace present sig-
nificant barriers to development for many
people around the world and can have
a particularly devastating impact on the
future of young people. Together with the
PeaceEarth Foundation led by UNESCO
Goodwill Ambassador Forest Whitaker,
Ericsson is exploring the role of ICT and
mobile broadband to create conditions
to foster peace among youth, many of
whom are victims of conflict.
U.S. inner city neighborhoods. Ericsson
serves as technology partner with Peace
Earth and UNESCO, in order to deploy
ICT technology and education solutions
to Peace Earth projects and in doing so
accelerate the peace-making process.
Using technology for peace
As part of the three-year program, Peace
Earth students will study and learn con-
flict resolution and peace promotion, and
spread it outward in their communities as
part of theYouth Peacemaker Network.
An initial commitment from Ericsson to
Peace Earth is delivery of Internet access
via mobile broadband, computers, and
ICT training to 60 troubled youth in two
locations – Hope North, in Uganda, a
school dedicated to the young victims
of Uganda’s civil war, and also in Juba,
South Sudan. For these young people,
Listen to PeaceEarth Foundation
founder, actor Forest Whitaker,
Hope North founder Sam Okello
and Ugandan youth talk about ICT’s
role in peace.
Hope North is dedicated to healing the young victims of Uganda’s civil war,
including orphans and former child soldiers. Now ICT is one of the tools
to empower them to become voices for peace and development.
connectivity is basic but vital, providing
the fundamentals on how to send email
and to access and use social networks
responsibly. After the first deployments,
the importance of ICT skill building and
collaboration became an even more
integral part of the overall peace-building
curricula.
Community Peace Building
Access to the Internet’s knowledge bases
and resources is fostering active col-
laboration between participating youth
and plays an
important role in
their community
peace building, by
enabling them to
collaborate with
each other and
their communities.
The non-profit PeaceEarth Foundation
was formed to promote peace amongst
troubled youth everywhere, from rural
African conflict areas to troubled urban
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 17
enabling communications for all
Banking
the unbanked
Worldwide, there are some estimated 2.5 billion people who are
unbanked – and yet 1.7 billion of them have mobile phones.
Mobile commerce (m-commerce) enables the handling of financial
tasks directly from a mobile phone, such as paying bills, replen-
ishing mobile phone prepaid (top up) accounts, remittances or
person-to-person money transfers, and conducting business
transactions. Mobile financial services also contribute substan-
tially to economic and social inclusion in societies.
Empowered consumers in Africa
In 2012, Ericsson’s ConsumerLab studied Ghana, Tanzania, and
South Africa and found that consumers rely on m-commerce to
improve quality of life, security and convenience. The study also
examines how men and women maintain different roles in the
household economy, with women often responsible for both the
household economy and family savings, as well as playing key
roles in the ever-increasing numbers of small businesses started
by extended families.
Consumers have new levels of empowerment in creating
accounts, which in turn is spurring local economic activity.
While Ericsson will continue to expand access to services across
Africa, Asia, the Middle East, and Latin America, we will also look
for opportunities to provide the benefits of bank services to the
estimated 60 million unbanked consumers in the United States.
Creating the right platform
M-commerce has seen great success in different countries,
primarily in Africa and Asia. One of the greatest challenges to
mobile money has been cross-border financial transfers. Ericsson’s
Wallet Platform integrates a number of financial services and is a
natural progression of Ericsson’s expertise and long experience
in real-time transactions with billing and payment solutions.
Ericsson’s aim is to mobilize a wide range of small financial
transactions, such as small person-to-person payments, to make
them significantly more affordable and accessible for everyone
in the transaction value chain. Huge numbers of tiny transac-
tions such as top-ups, phone calls, SMS, tweets, shares, etc, are
already made possible through mobile communications, making
m-commerce the natural next step in the evolution of services.
Our global presence and reach will help make such services
available across existing financial eco-systems.
In 2012 Ericsson announced a strategic alliance with Western
Union, where the Ericsson Wallet Platform was certified by
Western Union’s Mobile Money Transfer Network. This will aid
mobile operators in offering consumers a robust package of
m-wallet options for money exchanges.
Ericsson is working on a common standard for transferring
m-wallet funds between countries, much like the SMS standard
that allows texting to work globally. Ericsson’s Interconnect
service is a step in that direction, allowing a mobile phone user
in one country to instantly and safely send money to a receiver in
another country.
Listen to Ericsson on m-commerce’s potential
to open up the economy for the unbanked.
A baker uses the mobile for commerce.
18 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
enabling communications for all
In South Sudan, some 350 aid organiza-
tions are struggling to respond to the
desperate humanitarian crisis caused
by ongoing conflict that has left half of
the country’s 9.7 million people without
enough to eat, according to Oxfam. Being
able to coordinate efforts is essential.
Ericsson Response, the company’s
flagship corporate responsibility and em-
ployee volunteer program, helped them
do that in 2012. Ericsson worked with
Emergency Telecommunications Cluster
(ETC) partners – World Food Programme
(WFP) and emergency.lu to provide vital
communications services to relief work-
ers in South Sudan using Ericsson Wi-Fi
technology.
The combined ETC response solu-
tion from WFP, Ericsson Response and
ericsson response™
First responders rely on ICT
Mobile communications are increasingly
important to quickly and efficiently save
lives and protect property. Emergency
services receive many calls each day and
lives often depend on the 4G/LTE tech-
nology that will be the backbone of the
national public safety broadband network.
Large-scale planning and coordination,
and accurate, timely information sharing
helps get personnel and resources to the
right place quickly. Systems that handle
these challenges must be scalable and
flexible to provide the same level of com-
mand, control and communication during
large-scale emergencies, such as natural
disasters in an urban area, as to an every-
day car accident.
As an example of how mobile com-
munications can improve emergency
response, Ericsson and their alliance
partner Motorola are ready to deliver 4G/
LTE technology systems that are scalable
and configurable solutions. These range
from telecom operators offerings where
no dedicated public safety spectrum is
available (e.g., Europe), to a dedicated
national public safety mobile broadband
network as in the U.S. These networks will
allow emergency personnel and first
responders to access rapid downloads
and uploads of information and video to
be shared at the incident scene, across the
mobile data network and interconnected
with new and existing public safety and
government data network systems.
The high-speed LTE network means first
responders can use several different ser-
vices to make their work safer, including
the ability to send video to the central of-
fice so personnel there can better support
responders at the scene. First responders
gain new multimedia tools that aid their
mission to serve and protect.
emergency.lu provides free, reliable, high-
speed Internet connectivity that allows
the humanitarian community to perform
its life-saving work in remote areas more
efficiently.
Source of motivation
The initiative in South Sudan is just one of
many missions being carried out by
Ericsson Response, which for more than
12 years has provided essential mobile
communications to support disaster relief
and humanitarian aid. This non-profit
activity engages Ericsson employees in
volunteer work with no commercial objec-
tive and is a key component of Ericsson’s
corporate responsibility activities. Not only
is it inspiring those who participate but is
a source of motivation, empowerment and
value creation for all Ericsson employees.
Active around the world
In 2012, Ericsson Response assisted UN
partners and other aid organizations in
many places around the world. Volunteers
went to Haiti to share ICT knowledge and
for on-the-job training as UNICEF ICT
officers. Ericsson volunteers helped with
deployment and maintenance of commu-
nications technology for partners in Mali
and in Tanzania (where servers were dam-
aged in flooding in 2012). Another volun-
teer served as a technical instructor at a
mission in Uganda with UNICEF. Other
volunteers provided technical support to
the OneUN project, aimed at developing a
unified collaboration platform for multiple
UN agencies to enhance their communi-
cation on the ground.
Faster communication
In 2012, after the UN requested that
Ericsson Response supply a network that
offered additional functionality, Ericsson
developed a new container for mobile
communication and multiple-access tech-
nologies which will significantly improve
communication in disaster zones. The
new container is based on the latest tech-
nology for radio-access networks with the
ability to include all three standards in the
future: GSM/EDGE, WCDMA/HSPA, and
LTE. As part of its longer-term strategy,
Ericsson Response has established an
Ericsson Response Logistics and Training
Center in Linköping, Sweden.
Listen to aid humanitarian workers
talk about the role of Ericsson
Response in humanitarian crisis
in South Sudan.
Currently, more than 130 volunteers from about 30 countries are involved in Ericsson Response, and meet
regularly to update their disaster preparedness training.
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 19
Reducing our environmental impact
Reducing our environmental
impact
We demonstrate leadership in the energy and environmental performance of telecom
networks and services to minimize our carbon footprint and environmental impacts.
Our Life-Cycle Assessment approach shows that our greatest environmental impact is
from when our products are in use, so our strategy is to provide energy-efficient and low
energy-consuming products and solutions. We also focus on reducing the carbon footprint
of our own activities and tracking other environmental impacts such as emissions to air,
waste and water.
20 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
Reducing our environmental impact
ERICSSON LIFE-CYCLE ASSESSMENT
CARBON FOOTPRINT 2012 (Mtonnes CO2
e)
Supply chain
Activities in 2012
Ericsson life-cycle
assessment – carbon
footprint 2012
Mtonnes CO2e
25
30
20
15
10
5
0
–5
~3
~–0.3
~26
~4
0.9
Supply chain
Ericsson own activities
Activities in 2012
Operator activities
Products in operation
End-of-life treatment
Future (lifetime) operation
of products delivered in 2012
Ericsson life-cycle
assessment – carbon
footprint 2012
Mtonnes CO2e
25
30
20
15
10
5
0
–5
~3
~–0.3
~26
~4
0.9
Source: Ericsson
Supply chain
Ericsson own activities
Activities in 2012
Operator activities
Products in operation
End-of-life treatment
Future (lifetime) operation
of products delivered in 2012
Ericsson life-cycle
assessment – carbon
footprint 2012
Mtonnes CO2e
25
30
20
15
10
5
0
–5
~3
~–0.3
~26
~4
0.9
Source: Ericsson
CARBON FOOTPRINT
– INTENSITY TARGET (Percent)
Ericsson own activities
Products in operation
Carbon footprint
intensity target
Percent
100
80
60
40
20
0
TARGET−40%
TARGET–40%
RESULT2012−16%
RESULT2012−22%
2008
2009
2010
2011
2012
2013
Source: Ericsson
Ericsson takes a full life-cycle approach, through raw material
extraction, manufacture, transport, use, disassembly and
end-of-life with particular focus on energy efficiency, materials
management and product take-back. Life-Cycle Assessments
(LCA) confirm that energy use of products in operation remains
our most significant environmental impact. We also work actively
to reduce the environmental impact of our own activities, focus
our efforts in two distinct areas:
•	 Improving environmental performance of Ericsson’s own activities
•	 Optimizing energy and environmental performance for telecom
networks and services
Our carbon footprint for 2012 can be seen in the graph below.
A five-year target which aims to reduce the Ericsson carbon
footprint intensity by 40% was set in 2009 (with a 2008 baseline).
The target comprises two focus areas: Ericsson’s own activities
and the life-cycle impacts of products in operation (see graph,
Carbon footprint intensity target). In 2012, Ericsson exceeded the
annual 10% reduction target, and as a result, the target has been
achieved in four years instead of five, with the following results:
•	 A 22% reduction in direct emission intensity from Ericsson’s
own activities was achieved during 2012, including facilities’
energy use, product transportation and business travel.
	 This was achieved by:
	 – Reducing absolute emissions from business travel by 16%
	 – Reducing absolute emissions from product transportation
		 by 12%
	 – Decreasing facility energy consumption by approximately
		 3%, while related emissions increased by 13%
•	 A 16% reduction in indirect emission intensity from life-cycle
impacts of products in operation was achieved in 2012. This
is due to a combination of improved product energy efficiency
and the mix of products sold.
Life-cycle approach
identifies priorities
The
carbon footprint
of an average ICT
user is estimated to
decrease 20%
between 2007
and 2020…
…so we are
designing
products and
solutions to
make this
happen…
We are reducing our
environmental impact
throughout our value chain.
Ericsson’s Psi Ψ 3G coverage
solution reduces power
consumption by up to 40%
The Antenna-Integrated Radio
(AIR) cuts energy consumption
by 40%
By 2017, 85% of the world’s
population will have access to
mobile-broadband coverage
via 3G networks
Ericsson increased its video
conference rooms globally by
60% in 2012, contributing to
the reduction of CO2e
emissions per employee
34% of our global
facilities use certified
green electricity
and 74% at measured
European facilities
…and reducing
carbon emissions
in our own
operations.
reducing our
environmental
impact
In Sweden, we have used
100% certified green
electricity since 2008
…finding
smarter ways of
working…
Source: Ericsson
˜
= Approximately Source: Ericsson
Source: Ericsson
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 21
Reducing our environmental impact
Helping customers meet
energy challenges
Enabling our customers to solve their energy efficiency challenges
is a priority for Ericsson. Our goal is to lead our industry in
developing innovative network products and solutions that help
operators curb rising energy costs, reduce energy consumption
and lower their carbon footprint.
When more means less
In most parts of the world, for our customers, increasing energy
efficiency and decreasing energy consumption are on top of their
minds. The challenge is often compounded in emerging markets,
by unreliable energy supply and a dependency on off-grid diesel
fuel that is expensive, subject to theft, and environmentally
costly.
Ericsson’s aim is to help deliver high-quality performance in an
environmentally responsible way while keeping operational ex-
penditures down. Our fixed and mobile networks are designed for
energy efficiency, increased lifespan and fewer maintenance and
site visits. In a typical radio access network, up to 90% of energy
is consumed in radio base stations. For more than a decade,
Ericsson has increased 3G energy efficiency by 85% in radio
base stations, allowing networks to meet bandwidth demands
without increasing energy consumption per subscriber.
As radio sites become more energy-efficient and the cost of solar
panels decreases, renewable power supply solutions such as
solar and wind are becoming an increasingly cost-efficient and
environmentally attractive option, particularly for providing cover-
age in off-grid areas.
Hub of excellence
Over many years, Ericsson has collaborated with customers to
address challenges and determine the optimal combination of
hardware, software, custom engineering and other related ser-
vices that will bring down energy costs while creating the most
value for the operator. This has included looking at network and
site energy-efficient solutions or fuel, electricity, and alternative
energy sourcing. It also means evaluating energy consumption,
logistics and battery management. Energy infrastructure is also
constantly assessed as part of operation and maintenance.
During 2012 we formed a Global Energy Consulting Hub to
help customers address these challenges. The Hub consists of
a cross-functional team offering end-to-end energy manage-
ment for our customers, including operations assurance, energy
optimization, supply and consumption management, along with
energy solution design and deployment. This helps operators
combine substantial cuts in energy-related OPEX with improve-
ments in network availability, quality and energy consumption.
The Hub is primarily focused on innovation in two areas: energy-
efficient network equipment – where optimized network design
reduces the amount of energy required by the equipment; and
energy-efficient solutions for powering the network equipment,
e.g. energy-efficient rectifiers, batteries, generators, and alterna-
tive sources of energy such as solar, and wind. The combined ef-
fect is major cost savings as well as lower environmental impact.
22 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
Reducing our environmental impact
RBS6000 FAMILY
Scaling energy-smart products
Close to 100% of our radio base station
deliveries now comprise the RBS 6000
family. Launched in 2011, the Antenna-
Integrated Radio (AIR) is part of this suite
and is based on a unique design that
integrates the radio unit with the antenna,
cutting energy consumption by 40%
through reduced feeder loss and simpli-
fied cooling.
Featured at the 2012 Broadband World
Forum, Ericsson’s energy-aware optical
transport is the first adaptive power man-
agement technology for optical transport.
The Energy Aware Smart Packet Optical
(SPO) 1400 demonstration showed how
power management modes can be ap-
plied using traffic load measurement and
prediction with lower power consumption.
Traditionally, telecom equipment always
runs at full throttle, even when traffic
levels vary over the course of the day or
week. In the demonstration the prototype
modulated energy consumption based
on actual use while maintaining network
performance based on the bandwidth re-
quired.
This dynamic power management
results in measurable energy savings. For
example, a small, regional network might
require a minimum of 100 SPO nodes. Using
energy-efficient dynamic nodes could
potentially reduce yearly energy costs
by EURO 300,000 and results in carbon
dioxide emission reductions equivalent to
removing 7,000 cars from the road.
Leading energy innovation
Our approach to energy efficiency is
about finding core portfolio offerings that
can scale. One of the challenges that
operators face is how to build out 3G
coverage expansions in a cost-effective
and efficient manner. Among the solutions
we provide to address this are:
The Ericsson Ψ (Psi) Coverage:
a solution that provides mobile broad-
band (3G) coverage. The name Ψ reflects
the shape of the solution with just one
standard base station radio connected to
three antennas rather than the tradi-
tional deployment of a single radio per
antenna. It has been shown in the field
to reduce power consumption by up to
40% compared to earlier installations
with same coverage; this translates into a
240 W power saving per site or 550 liters
of diesel saved annually. Ψ-Coverage
was successfully launched in the field in
August 2012.
ECO Mode: Since 2011, the Ericsson
MINI-LINK provides an ECO Mode solu-
tion enabling up to 40% power consump-
tion reduction for microwave communica-
tion. Traditionally, the microwave radio unit
consumes the same amount of power in-
dependent of the used output power. With
MINI-LINK ECO Mode, the radio units
can effectively adjust power requirements
according to the used output power in the
POWER CONSUMPTION REDUCTION
WITH ERICSSOn (Psi) coverage
800
600
400
200
0
3x1 Power consumption
Psi Power consumption
Power consumption reduction with Ericsson Psi
(Watt)
17:00 21:00 03:00 07:00 11:00 15:00
Source: Ericsson
The RBS 6000 family of radio base stations offers 80% lower energy consumption
per subscriber and requires 75% less space compared to previous generations.
In the field, over a 24-hour period, the solution
shows an average power consumption reduction
of 40%.
radio interface, which varies according
to the actual link conditions and output
margin design. During 2012 further ECO
Mode improvements were introduced,
providing power consumption reduction
even with maximum output power in the
radio interface.
Managed Rural Coverage: bundles a
managed service with a cost-efficient
solar powered 2G, 3G or LTE-mini-site
solution including satelite transmission,
designed to connect people in areas with-
out voice- and data communication.
Source: Ericsson
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 23
Reducing our environmental impact
Continuously improving sustainability performance is fundamen-
tal to Ericsson’s strategy – and a chief priority is reducing the
carbon intensity of our operations. In 2012, a number of measures
were taken to reduce our direct carbon footprint and a long-term
objective was set to reduce CO2
e per employee by 30% over five
years. The Ericsson carbon footprint reduction goal is to keep
absolute CO2
e level at 2011 levels by 2017, despite forecasted
growth in sales and number of employees. Our approach is to
reduce our carbon footprint while simultaneously improving pro-
ductivity and achieving a cost-benefit balance. Our primary focus
areas are facilities, product transport and business travel.
Reducing our direct
carbon impact
CARBON INTENSITY – ERICSSON OWN ACTIVITIES
2
3
1
Facilities: Tonnes CO2
e/employee
Transports: Tonnes CO2
e/tonne products
Travel: Tonnes CO2
e/employee
Carbon intensity − Ericsson own activities
2.4
1.8
2.8
2.4
1.6
1.5
2.2
2.5
2.2
1.81.8
1.8
2.6
2.3
1.4
2008 20122009 2010 2011
Source: Ericsson
Green-certified buildings
To stimulate the market for high environmental performance
buildings, Ericsson seeks to have major facilities built according
to green-rated building systems like LEED Gold (Leadership in
Energy and Environmental Design), an internationally recognized
green building program. In India, Ericsson facilities in Bangalore,
Noida and Gurgaon and a new building in Kista, Sweden have
been certified as LEED Gold. High environmental performance
buildings carries many benefits including indoor environmental
quality, improved energy and water efficiencies, and optimized
use of materials and resources, and innovation and improved
design process.
Facilities management
We exceeded our 2012 aim of reducing energy usage in our
facilities by 3% per head, achieving a 3.6% decrease by:
•	 Creating more efficient work environments through
introduction of more flexible ways of working including
‘free seating’ (non-assigned workspaces) and greater usage
of video conferencing (video conferencing increased by 60%
during 2012).
•	 Purchasing renewable or green energy certificates wherever
practical. In Sweden, we have had 100% green-certified
electricity since 2008. In 2012, total share of certified green
electricity in our facilities measured and calculated was 34%
globally, and 74% measured in Europe.
CO2
e direct and indirect emissions
2012 2011 2010 2009 2008 Unit
Total 355 260 204 a) 201 a) 224 a) ktonne
Energy (S1) 30 32 30 26 28 ktonne
Car fleet (S1) 62 b) - - - - ktonne
Energy (S2) 263 228 174 175 196 ktonne
2012 2011 2010 2009 2008 Unit
Total 29,512 31,045 23,863 20,788 35,269 tonne
Recycling 13,500 16,300 11,100 9,521 23,870 tonne
Energy 9,900 8,400 6,600 6,089 6,250 tonne
Landfill 5,400 5,400 5,100 4,456 4,350 tonne
Hazardous 712 945 1,063 722 799 tonne
Production and office waste
Notes to Environmental KPI graphs and tables in this chapter:
Ericsson follows ISO 14040 and ISO 14044 standards when
performing Life-Cycle Assessments.
Mpkm: Million personal kilometer = Million distance traveled
Mtonnekm: Million * tonne* kilometer = Million transport work
a)	Restated due to new measurements and corrections
b)	First time calculated
S1, S2 and S3 mean Scope 1, Scope 2 and Scope 3
according to GhG protocol
Source: Ericsson
Energy consumption
2012 2011 2010 2009 2008 Unit
Electricity 808 830 650 651 670 GWh
District heating 56 60 93 95 100 GWh
Other energy 121 130 100 97 100 GWh
Our LCA approach shows that with the growth of our Managed
Services business, the direct carbon emissions of our car fleet
is increasing and therefore we are setting new environmental
targets to address this impact in 2013.
CO2
e Ericsson own activities
2012 2011 2010 2009 2008 Unit
Total 909 881 a) 647 a) 562 a) 784 a) ktonne
24 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
Reducing our environmental impact
Product transport
Ericsson is strategically shifting from air to surface freight in
product transport, and in 2012 80% of outbound freight went
by surface, thereby exceeding our target to increase outbound
surface freight to 75%. Requirements for transport suppliers
were raised and customer order points are being moved closer to
the regions. We are also working with logistics service providers
to optimize consolidation of material and routes.
BUSINESS TRAVEL – LONG-TERM OBJECTIVE
2
3
1
0
2.2
1.4
1
2000 2006 2012 2017
Business travel – long term objective
Tonnes CO2
e/employee
Source: Ericsson
CO2
e indirect emissions
Business travel
Product transportation
2012 2011 2010 2009 2008 Unit
Air transport 452 481 a) 346 226 525 Mtonnekm
Road transport 372 360 a) 257 300 300 Mtonnekm
Ship transport 338 99 a) 58 165 240 Mtonnekm
2012 2011 2010 2009 2008 Unit
Total 554 621 a) 443 361 560 ktonne
Travel (S3) 159 189 164 134 145 ktonne
Transport (S3) 326 370 a) 229 180 370 ktonne
Commuting (S3) 69 62 50 47 45 ktonne
2012 2011 2010 2009 2008 Unit
Air travel 1,200 1,400 1,250 1,003 1,090 Mpkm
Road travel 74 129 90 90 97 Mpkm
Car fleet 339 b) - - - - Mpkm
Commuting 415 375 300 295 280 Mpkm
Business travel and commuting
During 2012, Ericsson’s target was to reduce flight trips by 10%
from a 2011 baseline. By year-end, these were down by 12%.
As part of our sustainability strategy, Ericsson prioritizes devel-
oping alternatives to travel to improve productivity and reduce
carbon dioxide emissions. This includes deploying our own tech-
nology and communication and collaboration tools and creating
more modern and flexible work environments. For example, we
have increased the number of video conferencing rooms by 60%
during 2012.
As noted above, we are also setting new environmental targets to
address our car fleet, which is increasing in significance as
Managed Services business grows.
Use of videoconferencing tools is increasing rapidly at Ericsson.
Ericsson’s long-term objectives is to reduce carbon emissions from business
travel to 1 Tonne CO2
e per emplyee by 2017.
Source: Ericsson
In our test environment labs we created a baseline for energy usage
and monitor PUE (Power Usage Effectiveness) for continuous
improvement. Our plan from 2013 includes securing that our test
environment labs and data center over the next few years will be
more energy efficient in 2013.
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 25
Reducing our environmental impact
Understanding trends in
ICT and carbon emissions
Ericsson conducts extensive research
on energy and carbon trends within the
industry. Commonly agreed, our sector
is estimated to account for around 2% of
total CO2
e emissions. It also has signifi-
cant potential to reduce the 98% of
emissions that come from other indus-
tries. Our research and own activities
focus both on reducing the 2% and
enabling a reduction of the other 98%.
A recent study Ericsson conducted with
telecom operator TeliaSonera on the
future carbon footprint of the ICT and
Entertainment & Media (E&M) sectors
shows that the ICT sector´s own footprint
is expected to not exceed 2% by 2020.
Limiting the ICT footprint
Expected growth in data traffic volumes,
subscribers and number of devices are
the main drivers behind ICT’s increased
carbon footprint in absolute emissions,
with PCs and servers in data centers as
key contributors. However, our research
shows that carbon footprint per average
ICT user and per amount of data continues
to decrease over time.
ICT CARBON FOOTPRINT OUTLOOK
CO2
e PER DATA OUTLOOKCO2
e PER SUBSCRIBER OUTLOOK
1200
1000
400
200
600
800
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Mobile networks and mobile devices (incl. tablets)
PCs (all types, excl. tablets)
Data centers, data transmission & enterprise networks
Home devices (fixed phones, Customer Premises Equipment (CPE))
Fixed networks
ICT carbon footprint outlook
Mtonnes CO2
e
Source: Ericsson
80
100
120
60
40
20
0
Mobile data
Fixed data
CO2e per data outlook
(kg CO2
e/GB)
20201990 2000 2010
Source: Ericsson
300
400
200
100
0
Fixed data
Average ICT user
Mobile data
CO2e per subscriber outlook
(kg CO2
e/user)
20201990 2000 2010
Source: Ericsson
Carbon footprint per average ICT user and per amount of data continues to decrease over time.
Source: Ericsson
Source: Ericsson Source: Ericsson
26 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
Reducing our environmental impact
closing the loop
Since 2005, Ericsson has offered free-of-charge product take-
back to customers worldwide as part of its extended producer
responsibility. Our end-of-life approach exceeds legislative
requirements for recycling and we apply the EU Waste from
Electrical and Electronic Equipment (WEEE) Directive globally.
This helps minimize risks by ensuring proper handling and
treatment of waste.
Our key material streams are ferrous metals, precious metals
and plastics. The majority of the metals re-enter the commodities
market as raw materials, reducing depletion of non-renewable
resource reserves and helping to abate global carbon dioxide
emissions.
Choosing recyclers carefully
To handle and process WEEE, Ericsson utilizes a small number of
carefully selected e-waste recyclers who provide global cover-
age and economies of scale through subsidiaries and partners
around the world. Due to the sensitivity and environmental risks
associated with processing and handling e-waste, using a few
proficient recyclers helps Ericsson achieve economies of scale
and makes it easier to control proper handling. We audit our
recyclers and their sub-suppliers at least annually on aspects like
code of conduct and business ethics.
Ericsson’s approved recycler for WEEE in India recently extended
their facility in Chennai to include a chemical e-waste processing
plant, becoming the first full e-waste processing facility in India.
Until suitable conditions exist in all markets, Ericsson will con-
tinue to ship waste to other sites where environmentally preferred
recycling methods can be assured.
Towards further improvement
Ericsson cooperates with a number of global organizations
focused on improving the handling of WEEE such as the UN StEP
(Solving the E-waste Problem) and GeSI.
Of all material collected and processed during 2012, less than
2% was sent to landfill and more than 98% was recovered.
Between 2011 and 2012, the number of tonnes of take-back
orders increased from 5,567 tonnes to 9,271 tonnes. As a result,
the program reached its recovery target, exceeding the stipulated
EU WEEE target of 75%.
Our new take-back target for 2013 is to achieve 10% take-back vs.
equipment put on market (PoM) – more than double the 2012 target.
Our objective is to reach a level of 60% of PoM by 2016, primarily
through increased customer awareness and better integration of
decommissioning services with the Ericsson take-back process.
The carbon footprint per average ICT user over fixed and mobile
systems is estimated to decrease from about 100 kg CO2
e in
2007 to about 80 kg CO2
e in 2020.
Similarly, the carbon footprint per average GB of data is reduced
by a factor of 35. This is due to a number of factors that limit the
ICT carbon footprint, particularly energy-efficiency improvements
of network equipment, better power management and lower
stand-by power consumption of user equipment.
Taking into account even an aggressive M2M or machine-to-machine
scenario adds only marginally to the expected sector footprint
which remains around 2%. Our scenario considers the impact
from the billions of connectivity circuits, sensors and tags that are
expected to be used by all industry sectors. Embedding connec-
tivity in appliances, electric vehicles, and other objects or devices
will only give a limited increase in energy usage. Indeed, we expect
a relatively low impact on energy usage and CO2
e emissions due
to the low energy need of connectivity circuits, sensors and tags,
and, when batteries are used, efficient battery operation.
Ericsson contributed to the Global e-Sustainability Initiative
(GeSI) report “SMARTer2020,” published in 2012 which looked
at the ICT sector carbon footprint as well as ICT-enabled carbon
abatement.
SMARTer2020 analysis
According to “SMARTer2020,” widespread adoption of ICT devices
has raised ICT’s total associated GHG emissions. From 2002
to 2011 emissions rose from 0.53 Gt CO2
e to 0.91 Gt CO2
e and
are projected to rise to 1.27 Gt CO2
e by 2020. This represents a
slight increase in ICT’s share of total global emissions, to 2.3%
by 2020. Which is in line with our own results in the Ericsson
TeliaSonera study.
Collaborating on energy research
Ericsson takes a leading role in a number of multi-stakeholder
research projects within the ICT industry including our customers
and suppliers, government, and academia to drive greater energy
efficiency in both fixed and wireless networks.
Towards well-defined standards
Ericsson monitors closely sustainability-related market and
regulatory developments worldwide and contributes actively the
development of well-defined standards that drive materials and
energy efficiency and for assessing climate change impact.
Product Take-Back (T-B) and End-of-Life treatment
2012 2011 2010 2009 2008 Unit
Product T-B 9,271 5,567 5,672 9,772 3,660 tonne
WEEE Treated 8,248 5,567 5,672 9,772 3,660 tonne
Reuse 1 5 2 3 9 %
Recycling 94 88 91 89 88 %
Energy 4 5 6 6 1 %
Landfill 2 2 1 3 2 %
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 27
Enabling a low-carbon economy
Our strategy to shape the low-carbon economy is two-pronged. First, we work in partnership
to develop intelligent ICT-enabled solutions for our customers, including primarily operators
but also utilities, transportation, governments and others. And second, we actively engage
with stakeholders and policymakers nationally and globally to inform public policy, and to
drive initiatives that will accelerate the potential of broadband to transform cities, reduce
carbon, increase efficiency, spur innovation, and enhance life quality.
Enabling a low-carbon
economy
Stockholm Royal Seaport
28 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
Enabling a low-carbon economy
As an essential part of our Sustainability and CR strategy, Ericsson
advocates broadband’s role for sustainable urbanization and in
shaping low-carbon economies of the future. We put emphasis
on proofpoints combining business opportunities with low-carbon
offerings to help drive the transition to a smart, sustainable soci-
ety, and ICT as a catalyst for change.
ICT is transforming the economy across many diverse industries,
from utilities to transport to healthcare and also governments.
Ericsson, through its products and solutions, is helping to deliver
on that potential around the world. Intelligent transport systems
help make transport cleaner, safer and more seamless while
smart grids and smart meters increase energy efficiency by
enabling applications like home-energy management and grid
automation.
The SMARTer2020 study, found a total potential reduction of
global CO2
e emissions across six sectors of the economy of
16.5% amounting to $1.9 trillion in gross energy and fuel savings
and a reduction of 9.1 Gigatonnes carbon dioxide equivalent
(Gt CO2
e) of greenhouse gases.
In another study, produced byYankee Group and GeSI mem-
bers Ericsson, BT, Deutsche Telekom, and Verizon, the energy
reduction impact of eight online or ICT-related activities within
households was explored in France, Germany, Italy, Spain and the
U.K (referenced as the EU-5) and in the US. The findings showed
that the greatest benefit by far could come from an increase in
telecommuting. This shift could produce energy savings equiva-
lent to 102 million barrels of oil per year in the EU-5, and 214.6
million barrels of oil in the US.
Unleashing the full potential of ICT across the economy requires
multi-stakeholder engagement and the right government incen-
tives and legislative frameworks. Ericsson is therefore active in
the global policy agenda and research to position ICT as a prima-
ry solution for social and environmental challenges such as rapid
urbanization, climate change and natural resource depletion. As
part of our strategy, we take a leading role in standardization and
development of methods to assess the carbon reduction poten-
tial of ICT-enabled products and services and to understand their
impacts at many levels, including city level.
A bridge to a more
sustainable world
enabling a
low-carbon
economy
The ICT sector contributes
about 2% of global CO2e
emissions, but can help
eliminate a significant portion
of the remaining 98% from
other industries.
ICT solutions
will enable the
low-carbon
economy
of the future…
…and will transform
industries and
cities.
By 2050, 70% of
the global population
will reside in an urban
area or city.
Stockholm Royal
Seaport is an
ICT-enabled city
district that will be
climate-positive
by 2030
ICT
2%
Waste
3%
Forestry 17%
Agriculture
14%
Energy supply
26%
Buildings
8%
Industry
19%
Transport
& travel 13%
The CO2e from an annual
mobile subscription is
equal to driving a car for
about 1.5 hours
Source:
Ericsson and
TeliaSonera, 2012
The SMARTer 2020 study
estimates that ICT-enabled
solutions could reduce
global CO2e emissions by
16.5% in 2020
Source: GeSI
Source:
UN HABITAT
Smart grids can help address
67% of the energy lost due
to inefficiencies before
reaching the consumer
ICT
2%
A 2012 study of eight ICT-related
services in six countries showed they
could produce energy savings of 373
million barrels of oil equivalents per year
Source: Yankee Group and GeSI
373million
Source: Ernest Orlando Lawrence
Berkeley National Laboratory and GeSI
Source: Stockholm Royal
Seaport Innovation
Center
Source: Ericsson
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 29
Enabling a low-carbon economy
10 RECOMMENDATIONS BY
THE BROADBAND COMMISSION
Recommendations for policymakers were part of a report re-
leased by the Broadband Commission for Digital Development
in the lead-up to the 2012 United Nations Conference on
Sustainable Development (Rio+20) in June.The work was
conducted by the Commission’s Working Group on Climate
Change, chaired by Ericsson President and CEO HansVestberg.
At the COP in Doha, Qatar in 2012, the Arabic translation of the
report was launched, now available in six languages.
Lead with vision: adopt a long-term National Broadband
Plan/Strategy based on universal affordability and accessibility,
open markets and innovation, and consciously connect this
to your climate goals.
Bring convergence: bring convergence to ICT policy formu-
lation so that it aligns with other policy areas such as energy,
health, education and climate in order to maximize impact.
Ensure regulatory certainty: with regards to policy and regu-
lations on climate and broadband to create a framework of
investment certainty.
Be an example: drive cross-ministry collaboration and inte-
grated decision-making to align climate and digital goals and
use government procurement to send the right market signals.
Foster flexibility: identify and remove the regulatory and
policy barriers currently hindering research and investment in
21st century ICT-based broadband-enabled infrastructure and
low carbon solutions.
Advocating
for change
Ericsson is actively engaged in driving a global policy agenda and
raising greater awareness so that policymakers and global leaders
can hasten and strengthen the power of ICT and broadband to
accelerate global progress towards a low-carbon economy.
Making ICT’s voice heard
In 2012 Ericsson joined the European Roundtable of Industrialists
and its Working Group Energy and Climate Change, to further
dialogue on ICT’s role to address areas facing Europe such as
energy security and emission reduction policies and regulations.
Other advocacy initiatives in which Ericsson is engaged include:
•	 Broadband Commission for Digital Development.
An ITU/UNESCO initiative promoting role of broadband to
benefit digital inclusion and low carbon economies (see box)
•	 UN Sustainable Development Solutions Network (SDSN).
A new initiative to support sustainable-development problem
solving at local, national, and global scales.
•	 GeSI. Ericsson is a founding member, Board member and
helps lead GeSI’s public policy work and is an active member
in several working groups and inititives.
•	 ICT’s role at Conferences of the Parties (COP). For several
years, Ericsson has joined with other industry partners to
represent the ICT industry in conjunction with the COP
annual sessions to assess progress and advocate the role
of broadband as a solution industry in the UN Framework
Convention on Climate Change (UNFCCC) process. At the
COP in Doha, Qatar in 2012 Ericsson supported the GeSI
launch of the “SMARTer2020” report.
Provide incentives: encourage uptake of low-carbon solu-
tions and support market change by rewarding or incentivizing
desired consumer behaviors. Spur innovation among individu-
als, companies and sectors.
Build the market: fund and facilitate scalable pilots to demon-
strate feasibility and effectiveness of broadband as an enabler
of low-carbon solutions and build a strong business case to
attract private investment.
Form partnerships: cultivate ‘connectivity’ and ‘co-creativity’
across public, private and non-governmental sectors and
industries to help develop a collaborative mindset, shared
goals, common language and break down silos.
Measure & standardize: develop harmonized metrics and
measurements and common standards for calculating both
ICT’s environmental impacts and the positive contribution it
can make to other sectors – from individual products to sys-
tems, and from individual households to city or national levels.
Share knowledge & raise awareness: actively disseminate
project findings, share best practice and learn from mis-
takes to identify success factors and facilitate leapfrogging,
especially among lesser developed markets. Communicate
the opportunities and synergies that can be achieved through
an integrated, trans-sector approach to digital development
infrastructure and low carbon solutions.
Source: The Broadband Bridge: Linking ICT with Climate
Action. Read the full report at www.broadbandcommission.org
Listen to Dr. Hamadoun Touré, Secretary General of
the ITU talk about how broadband links to climate action.
Hans Vestberg, Ericsson's President and CEO,
at the Clinton Global Initiative Annual Meeting.
30 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
Enabling a low-carbon economy
Reinventing the city
Explosive growth of cities and rapid
uptake of broadband are occurring just as
the world is facing up to serious economic,
environmental and social challenges.
Enabling cities to be more creative,
connected and sustainable is a major
challenge and a tremendous opportunity
to improve the lives of billions of people
along with the environment.
Today, half the world’s population lives
in cities. By 2050, that will rise to 70%,
according to the United Nations. Since
70% of CO2
is generated by cities,
national governments are looking for ways
to reduce the urban carbon footprint.
ICT-enabled solutions
Smart, sustainable cities around the world
have become a testing ground for many
of the digital infrastructure and services
that provide transformative solutions to
minimize carbon emissions while enhancing
convenience and connectivity. ICT is also
a key enabler solutions such as e-education,
e-health, m-health, e-governance, energy-
efficient buildings and collaboration tools
for remote working.
Among the sustainable urban solutions
in which Ericsson made headway in 2012
were smart grids and smart meters (see
page 32) and deployment of intelligent
transportation systems (see page 33).
Creating a climate-positive
Stockholm
Utilizing climate-smart and efficient
infrastructure, the city of Stockholm is
building Stockholm Royal Seaport (SRS)
to create a climate-positive city district by
2030. Some 10,000 homes, and 30,000
workspaces will be connected. The first
inhabitants moved in at the end of 2012.
Led by Ericsson, the Smart Communication
project at SRS is using ICT to develop an
attractive living and working environment,
while ensuring that the tough sustain-
ability goals for the SRS are met. Ericsson
engaged with the City of Stockholm dur-
ing the earliest planning stages and sup-
ported the development of an approach
for taking advantage of ICT across several
dimensions of the project. This evolved
into a formal partnership in Stockholm
Royal Seaport Innovation, with our active
leadership and participation in cross-
sector innovation projects in several areas
of the new city district.
The first step has been to make the core
ICT infrastructure of the area smarter,
focusing initially on energy. Ericsson is
leading the ICT aspect of the develop-
ment of the SRS’s Urban Smart Grid
project, managed by the Finnish utility
company Fortum.
Ericsson is also leading a mobility man-
agement pre-study on how travel and
transport in the area can be optimized
and substituted, where usage of electrical
vehicles and new business models are
areas being addressed.
Johannesburg: Digital City
In Johannesburg, South Africa, Ericsson
is providing a network and systems
integration for a next-generation, fiber-
optic network and strategic advisory
services to help the city reach its 2040
Growth and Development Strategy,
launched in 2011. The network will
provide broadband technologies to city
offices across Johannesburg – making
Johannesburg the first true Digital City
in sub-Saharan Africa.
Testing new approaches
We take a leading role in standardization
and development of methods to assess
the carbon reduction potential of ICT –
enabled products and services. In 2012
we developed a methodology to assess
the environmental impacts of ICT –
solutions at the city level. Ericsson is also
a founding member of the New Cities
Foundation, a non-profit Swiss institution
dedicated to improving quality of life and
work in the 21st-century city, with a par-
ticular focus on innovation and exchange,
fostering urban solutions through new
partnerships between the public, private,
non-profit and academic sectors.
Also in 2012, Ericsson published the third
edition of the Networked Society City
Index, which measures the extent of ICT-
enabled benefits in cities. “Triple Bottom
Line Benefits for City Business,” ranked
NewYork, Stockholm and London highest
on their ability to use ICT to benefit
business. According to the report, key
success factors are clear legal and fiscal
frameworks, simple and fast procedures
and predictable conditions, the report noted.
master of her world
Gunilla Svingby is one of the first oc-
cupants of Stockholm Royal Seaport,
one of the world’s leading examples
of a climate-positive city district.
“As a private person, I am part of the
world. I have a responsibility to act,
to help the sustainability of the envi-
ronment, and I can do that by moving
here, because then I have much more
influence on what I can do and what
I want to do,” says Svingby, a professor
of education at Malmö University.
“I work in Malmo part of the time and
so I want the heater turned on and off
when I leave, and not in between; in
that way, the interactive technology,
and the information it gives me, will
make me happy and much more the
master of my life.”
Listen to an urban planner in
Stockholm, the head of the New
Cities Foundation, and industry part-
ners talk about sustainable cities.
Listen to the mayor of
Johannesburg, South Africa
talk about digital development.
Listen to Gunilla Svingby talk
about how connectivity helps
her live a low-carbon lifestyle.
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 31
Enabling a low-carbon economy
The power sector emits over 21% of the world’s GHG emissions,
according to the SMARTer2020 report. By helping facilitate the
integration of renewables and enabling the smart grid, ICT can
significantly reduce the inefficiencies of the power sector and the
dependence on fossil fuels – the estimated abatement potential
by 2020 is 2.0 Gt CO2
e.
Smart grids use ICT to gather and act on information about the
behavior of suppliers and consumers using the grid.This information
can then be used to improve the efficiency, reliability and sustain-
ability of electricity production and consumption in the grid.
The shift from passive electricity distribution to intelligent, active
distribution is resulting in a thousand-fold increase in the number
of connected devices along the grid, and electric vehicle charg-
ing will increasingly be part of that picture (see page 33). Ericsson
is working closely with customers and other industry sectors
such as utilities to enable this transformation of the energy sector.
Government incentives and regulations, rising energy prices and
increased use of renewable energy are contributing to the uptake
of smart grids. A number of reports indicate that more than 540
million smart meters will be deployed worldwide before year
2017. As a result, Ericsson sees good growth in our smart grid
and smart meter solutions.
For instance, we have provided smart grid and smart meter
solutions to utilities Hydro-Quebec in Canada and Acea in Italy.
Ericsson also plans to deploy, systems integrate and run a
smart-metering network for the utility Elektrilevi in Estonia and
intelligence in the grid
its nearly half a million subscribers. Following a pilot project with
5,700 smart meters, 630,000 smart meters will be rolled out from
2013 to 2016.
Measuring the impact
To better understand the sustainability potential of such solu-
tions, Ericsson conducted a Life-Cycle Assessment (LCA) of
smart metering for electricity distribution, based on an Australian
case, as part of our series of studies exploring ICT solutions
and the potential CO2
e emissions reductions they can achieve.
The case modeled CO2
e emissions for the total system over a
lifetime of 20 years, including both negative impacts from the ICT
products and the positive impacts of their usage, in a scenario
including 30,000 customers.
The results showed that three main benefits – elimination of
manual meter reading, fewer vehicles leased for meter reading,
and reduction of energy used in the home – yielded a positive
net effect on emissions already at around 1% energy savings
in the home (1% corresponds to a saving potential of about
80kg CO2
e). The impact would be substantial at 2% and 4%
(corresponding to about 160 kg and 320kg CO2
e). Thus, energy
savings in the home have the greatest enabling effect, which
far outweighs the direct environmental impact of smart metering
installation and operation.
The full case study "Smart metering in Australia" is available
online at www.ericsson.com.
An Ericsson LCA study of smart metering for electricity distribution
showed energy savings in the home could cut carbon significantly.
32 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
ICT for smart
transport solutions
Fully integrating transport infrastructure,
vehicles and users with ICT has been
shown to significantly reduce environ-
mental impacts and deliver improved
safety and efficiency, and enables the
connectivity required to support infra-
structure for electric vehicles (see box).
In the “connected car,” connectivity and
service management enable new safety
features intended to avoid crashes and
to share information if accidents have oc-
curred. Timely emergency response to an
accident scene is essential to mitigating
the negative impacts of traffic accidents.
With partners in the automotive industry
and road authorities, we are piloting road
safety services, including Harmonized
eCall European Pilot (HeERO), aimed at
implementing the standardized eCall, an
automatic emergency call system acti-
vated in the event of a serious accident.
The EU requires all cars to be equipped
with eCall by 2015. In addition, Ericsson
has been developing a cellular road haz-
ardous warning project and the feasibility
of cellular car-to-infrastructure commu-
nications in a public-private initiative, the
Cooperative Cars project.
Connected commuting
Beyond safety, connectivity can enhance
the commuting experience.The Connected
Commuting report produced in 2012 by
Ericsson and the New Cities Foundation
found that real-time, mobile sharing of
information between commuters added
predictability to their journey, reducing
stress and even saving time. Read the full
report at www.ericsson.com.
Tracking carbon savings in buses
The 3.2 million citizens of Curitiba, Brazil,
and public transport operators are
benefiting from an electronic ticketing
and fleet management system enabled by
mobile broadband in a joint project with
Vivo, Dataprom, and Ericsson.
Ericsson conducted an ICT enablement
assessment study of the Curitiba bus
operation in 2012. Although it is hard to
predict the exact impact of ICT-enabled
efficiencies, there are indications that
ICT solutions could increase the amount
of public transportation and replace car
travel while also improving public trans-
portation efficiency. These developments
will in turn make bus travel more attrac-
tive, thereby reducing the amount of car
travel.
The study, which looked at a bus opera-
tion representing 1,928 buses, found if
the bus operation can be made
1% more
efficient in terms of CO2
e (based on
less fuel used), the potential direct CO2
e
savings would be about 2,000 tonnes
of CO2
e per year. Read the full study at
www.ericsson.com.
Enabling a low-carbon economy
Providing a platform
for electric vehicles
As more and more countries identify electric vehicles (EV)
as one of the solutions for a more sustainable society, ICT
will play a critical role in the infrastructure to enable volume
deployment of EVs. Charging large numbers of cars simul-
taneously across the electricity grid is challenging. With
ICT-enabled solutions, real time information can be used to
control EV charging and manage peak energy demand on the
grid. This allows utilities to handle the added demand with
only modest changes to the distribution network.
With Volvo Car Corporation, utility Goteborg Energi, a leading
utility in Sweden, and Viktoria Institute, a nonprofit IT research
institute, Ericsson is engaged in a project to bring mobile
connectivity to electric cars and put choice and control over
the charging schedule into the hands of drivers. The new
architecture allows drivers to control charging of cars while
they are plugged into any ordinary power outlet. Additionally,
the system directs energy costs to the car owners’ bill.The driver
sets the time and amount to charge on a console in the car or
remotely via a smartphone or tablet. Using the mobile network,
the car then communicates with the grid so that charging is
scheduled based on energy prices on the grid, reducing user
costs. For the energy utilities, coordinating the charging of
cars across the grid is more efficient and sustainable.
Listen to passengers in Curitiba,
Brazil talk about the benefits of
3G-enabled public buses.
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 33
Conducting business responsibly
conducting
business
responsibly
Our strategy is to earn the trust of our stakeholders by reducing corporate responsibility
risks throughout our business operations. Good governance and strong business ethics
are embedded in our value chain, from supply chain management to our own operations
to responsible use of our products. All our business practices, from a rigorous sales
compliance process to zero tolerance for corruption, are aligned with our Code of Business
Ethics, anchored in universal values of human rights. By engaging with stakeholders,
we are better able to manage emerging ethical dilemmas.
34 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
Conducting business responsibly
Demonstrating integrity and upholding the same high ethical
standards wherever we operate are strongly rooted within
Ericsson’s corporate culture. Good governance builds trust with
stakeholders, ensures accountability across the Group and helps
us manage our corporate responsibility risks.
The corporate governance framework is provided by the Ericsson
Group Management System (EGMS). Among other things, this
framework includes the Ericsson’s Code of Business Ethics,
the Code of Conduct and the Sustainability Policy. Our Global
External Assessment Program, monitored by assurance provider
Intertek, audits Ericsson-wide application of Group policies and
directives, management of operational risks and achievement of
corporate responsibility objectives.
Good governance, strong
ethics build trust
conducting
business
responsibly
Wherever we operate,
integrity and high ethical
standards are fundamental
to our work.
Through high ethical
standards and our
Code of Business
Ethics, we promote fair
employment, safe
working conditions
and concern for the
environment.
We have zero
tolerance for
corruption…
…and put human
rights in focus
throughout our
value chain.
In 2012, Ericsson joined the
Institute for Human Rights and
Business Framework to discuss
best practice for corporate
responsibility in Myanmar
Our auditors conducted
over 640 supplier Code of
Conduct audits in 2012
Our Sales Compliance Board
is improving internal
governance of human rights
issues in the sales process
Close to 100% of Ericsson
employees worldwide have
acknowledged our Code of
Business Ethics
Managing and assessing risk
Risk management is embedded in Ericsson’s Strategy and Target
Setting process, and our risk assessment processes include
human rights, corruption, and other sustainability-related risks.
Risk drivers, and relevant actions to address them, are reported
quarterly across the company.
Risks are categorized into four different groups, Industry and
Market, Commercial, Operational and Compliance and their
probability and impact on the business is assessed. Manage-
ment accepts, reduces, or eliminates risk through mitigating
actions and central Group Risk Management ensures that risks
are followed up in various governance forums. Environmental and
Social Governance (ESG) risks are among the key elements of
our risk management approach.
Top level targets and governance
A sustainability leadership target is part of the 2013 Group
balanced scorecard and performance against sustainability
objectives is included in the performance assessment of senior
managers. Additional targets and long-term objectives relating to
specific areas are highlighted on pages 48-50.
A cross-functional Sustainability and CR Steering Group meets
regularly to follow up on strategic and operational issues. The
Board of Directors is kept regularly informed about key issues
facing Ericsson. In 2012, in addition to strategy, targets and
annual performance, key topics on which the Board was briefed
included CR risks and Internal operations, as well as our human
rights progress and our strengthened Sales Compliance Board
processes.
Business ethics
In 2012, the Code of Business Ethics was updated to reflect
the new UN Guiding Principles on Business and Human Rights.
Implementation of these principles throughout Ericsson’s opera-
tions will continue into 2013.
Upholding Ericsson’s high standards for sustainability and CR is
also the responsibility of every employee. In 2012, close to 100%
of Ericsson employees worldwide have completed the acknowl-
edgement process for the Code of Business Ethics. To improve
transparency, the Code of Business Ethics, including information
on reporting of violations was published on the Ericsson website
in more than 30 languages. Online training on sustainability and
corporate responsibility is available to all employees.
Source: Ericsson
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 35
in support of human rights
Respect for human rights is central to
Ericsson’s Code of Business Ethics and
we work hard to embed it throughout our
business operations.
Ericsson supports the UN Declaration of
Human Rights and International Labor
Organisation Conventions and has been a
signatory to the UN Global Compact’s ten
principles in the areas of human rights,
labor, environment and anti-corruption
since 2000. From 2006-2009, Ericsson
was a member of the Business Leaders
Initiative on Human Rights. In 2012 our
commitment to uphold high human rights
standards was stepped up and organiza-
tional processes strengthened, notably
within our sales process.
Growing expectations
The impact of ICT on human rights is
complex, with rapid technological develop-
ments raising new questions, and is an
area of increasing concerns to a wide
range of stakeholders, from investors to
human rights organizations.
Ericsson engages with a range of stake-
holders to promote the positive use of
ICT to uphold human rights and prevent
the technology’s misuse, and we support
efforts to develop a multi-stakeholder
approach to human rights across the full
ICT ecosystem.
Embedding human rights in
the value chain
Integration of the UN Guiding Principles
on Business and Human Rights into
Ericsson’s governance framework began
when the Code of Business Ethics was
updated in 2012 to reflect the principles.
In 2012, Ericsson launched a two-year
Business Learning Program with Shift,
an independent, non-profit center for
business and human rights. Shift was
centrally involved in shaping and writing
the UN Guiding Principles and aims to
help organizations put them into prac-
tice. The aims of our Business Learning
Program are to further strengthen our
framework on human rights, develop an
Ericsson Human Rights Impact Assess-
ment (HRIA) tool and increase internal
assessment competency in the area, and
to gain an external expert view on the
implementation of our commitment to
respect human rights.
Sales Compliance Board
In 2012, the Sales Compliance Board was
strengthened to improve internal gover-
nance of human rights issues in the sales
processes. The Board meets bi-monthly,
and a core operational team meets more
regularly to discuss and review different
potential risks and to prepare and inform
the decisions of the Board on specific
sales. The Board has broad company rep-
resentation including, Legal Affairs, Trade
Compliance, Government & Industry
Relations, Sales & Marketing, Communi-
cations, Business Units and Sustainability
& Corporate Responsibility. It provides a
forum on a range of issues affecting poli-
cies and sales decisions for products and
markets such as human rights, corrup-
tion and sanctions, and aims to reduce
the risk that the company’s technology
directly or indirectly impacts negatively on
human rights.
During 2012, the Board focused on estab-
lishing a country risk screening process
which assesses country risks for po-
tential violations of human rights across
Ericsson business. The Board also works
to ensure that sales decisions in the
portfolio adhere to the Ericsson policies
and directives. Risks are evaluated using
the Ericsson country human rights risk-
Conducting business responsiblyConducting business responsibly
Mobile communications is expected to contribute significantly to employment
in Myanmar, according to an Ericsson and Deloitte study.
36 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
ranking index, which is analyzed together
with market and portfolio information to
assess risks, as part of the decision base
in the Ericsson sales approval process.
The country risk screening process is
based on the risk indices of Maplecroft,
a UK-based global risk and strategic con-
sulting firm, which provides an indepen-
dent ranking available to all Maplecroft
users. Our process focuses primarily on
the following Maplecroft indices:
•	 Human Rights Risk adjusted for
telecom
•	 Corruption
•	 Democratic Governance
•	 Freedom of Opinion and Expression
Complying with trade sanctions
Ericsson has a Group-wide trade compli-
ance policy and process for managing
compliance with relevant export control,
customs and other trade laws and regula-
tions, such as international sanctions.
An automated ‘sanctioned parties’ list
screening (utilizing black lists from the
UN, the US and the EU) is embedded in
Ericsson’s business system to further en-
sure compliance with sanctions and other
export control regulations.
cyber security in the spotlight
Communications networks are critical infrastructure in
today’s global economy and users of the digital information
ecosystem need to know their data is safe. Dealing effectively
with cyber threats is therefore vital and Ericsson considers
cyber security a highly significant and important issue.
Security is a key priority in product development, both at
node and system level.
Cybersecurity is a primary aim of the OECD Council 2011
recommendation on Principles for Internet Policy Making and
the European Parliament’s 2012 adoption of the “Resolution
on cyber security and defense”. A European Commission
cyber security directive for the full ICT value chain is also due
in 2013.
Ericsson recognizes that network functionality, data and the
right to privacy must be protected, so all products are de-
signed with appropriate levels of security, and risk analysis is
conducted to protect products against threat scenarios. Our
advanced security research covers all network, terminal and
application environments.
The company’s Information Security Management framework
is aligned with the international information security man-
agement standard ISO/IEC 27001. Ericsson is also actively
engaged in discussions over security assurance standards
and compliance methodology for the telecom industry and
within the area of standardization, as well as leading the de-
velopment of industry specifications on security architecture,
protocols and networks.
Conducting business responsibly
Respect for trade sanctions against
Syria and Iran has been raised as an area
of concern by stakeholders. Ericsson
adheres to the embargo and sanctions
imposed by the US, EU and other
countries partly based on UN sanctions.
Due to the ongoing conflict in Syria, our
business there was at a standstill in 2012.
In Iran, since 2010, when further sanctions
were implemented, we only see out existing
contracts. During 2012, we continued to
deliver on contracts dating back to before
2010, and we anticipate that sales of
infrastructure related products in Iran will
be phased out during 2013. We anticipate
that our business activities will thereafter
be limited to existing software license
agreements and the provision of services
under existing contracts or with respect
to equipment already delivered by Ericsson.
At the Social Good Summit 2012 in NewYork, Elaine Weidman Grunewald, VP Sustainability and CR,
discusses how Ericsson technology is enabling the right to education in many places around the world.
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 37
In 2012 Ericsson re-established a presence
in Myanmar for the first time since 1998,
following ongoing political reforms, the
suspension of sanctions by the European
Union and lifting of prohibitions on U.S.
investment in the country.
Many international observers see real
opportunities for positive and meaningful
developments to improve the human rights
situation and deepen the transition to
democracy in Myanmar. Ericsson strongly
believes that access to telecommunications
would be beneficial to the people, economy
and society of Myanmar.
Multi-stakeholder approach
In conjunction with re-establishing pres-
ence in Myanmar, Ericsson is identifying
and collaborating with respected human
rights stakeholders to assess the human
rights situation, and the socio-economic
impact of telecommunication. We have
joined an initiative by the Institute for
Human Rights and Business (IHRB) and
the Danish Institute for Human Rights
(DIHR) to apply human rights principles
and standards in business activities in
Myanmar using a multi-stakeholder en-
gagement process.The initiative is based
on applying the United Nations Guiding
Principles on Business and Human Rights.
Relatively untouched by ICT
Myanmar has been almost untouched by
the tremendous developments in telecom-
munications of the last two decades. Of
an estimated population of over 60 million,
only around one million people today enjoy
the benefits of a mobile telephone, and it
is estimated that fewer than 400,000 have
Internet access. A study conducted by
Ericsson and Deloitte in 2012 forecasts
that potential GDP impact of telecommuni-
cations in Myanmar could be around 7.4%
over the next three years, if subscriber
penetration rises to 35%, in line with
regional trends.The full study is available
at www.ericsson.com.
Cautious optimism
In anticipation of business activity in
Myanmar, Ericsson has initiated a Human
Rights Impact Assessment based on the
Towards positive,
responsible change
in Myanmar
UN Guiding Principles (see box below).
We recognize that human rights consider-
ations must be carefully considered when
doing business in Myanmar. Human rights
and corruption risks remain a concern
and must be the subject of continuous
dialogue and risk management processes.
In 2012 Ericsson joined a dialogue in
Myanmar facilitated by the governments
of Sweden and Myanmar to discuss best
practice in corporate social responsibility.
We also joined civil society experts from
Myanmar and abroad, policy-makers and
other business representatives at the global
forum Wilton Park to discuss challenges
related to investment in Myanmar, such as
corruption, inadequate labor standards,
land disputes, and armed conflict between
ethnic groups, emphasizing the need for
good governance, transparency, account-
Assessing our
human rights impact
As groundwork for conducting
businessin Myanmar, Ericsson intends
to conduct a human rights impact
assessment with the following aims:
•	 Describe the social, operational
and human rights context for doing
business in the country
•	 Identify the "rights-holders"
potentially impacted by operations
in country
Conducting business responsibly
ability and enhanced due diligence. As
Myanmar continues its political transition,
business can help foster an open and
transparent business climate.
•	 Identify possible actions to mitigate
or adapt to the risks while meeting
obligations to rights-holders and
the reasonable expectations of all
stakeholders
•	 Provide a framework for ensuring
that we respect human rights
across our business operations
in line with the Ericsson Global
Management System
•	 Assemble relevant facts, figures
and recommendations to enable
constructive engagement with
stakeholders
•	 Avoid complicity in human rights
violations, and in any unintended
use of products, services or
solutions
•	 Identify effective and locally
appropriate grievance mechanisms
and remediation procedures
38 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
Conducting business responsibly
Countering corruption
As a signatory to the UN Global Compact,
Ericsson aspires to fulfill its 10th
principle,
namely to: “work against corruption in all
its forms, including extortion and bribery.”
The Ericsson Code of Business Ethics
summarizes Ericsson´s zero-tolerance
policy against any type of corruption.
Ericsson’s anti-corruption program is
headed by a Chief Compliance Officer
and monitored by Corporate Audit and
the Board of Director’s Audit Committee.
A Compliance Forum (consisting of
representatives from Corporate Audit, HR,
Legal and Security) and a global Compli-
ance Legal Network ensure regular com-
munication on compliance matters.
In 2012 the program was strengthened
and a new anti-corruption directive issued
to ensure that Ericsson’s zero tolerance
policy against corruption applies through-
out the organization. Further guidance
was also provided on how to handle dif-
ferent situations to avoid breaches. Areas
covered included the offering and receiv-
ing of gifts and other benefits; arranging
and attending events, relationships with
suppliers and business partners, and
facilitation payments (which Ericsson
prohibits). A new directive on donations
and sponsorships means these must now
be approved by a central committee.
Guidance for employees
Training is vital for effective compliance,
and up until the end of 2012, more than
70 000 employees have taken the anti-
corruption training. In early 2013 we
launched a new, updated training, which
included top management engagement
from all Regions. As of Q1 2013, some
25 000 employees have taken the course.
It is a rolling program, and all units have
deadlines for when they are expected
to complete the training during 2013.
The training helps employees identify
problematic situations and evaluate
appropriate courses of action.
An anti-corruption pilot project focusing on
Central Asia (a region considered high risk
byTransparency International) was launched
in 2012, which includes a review of poli-
cies, directives and selection of business
partners. Our aim is for similar projects to
be run in other regions during 2013.
Reporting violations
In 2012 Ericsson’s reporting violation
process, the process whereby suspected
violations of law or the Code of Business
Ethics can be reported through e-mail
or postal letter to Corporate Audit, was
expanded in scope. It was previously
limited to only accounting and auditing
matters, and to Ericsson employees. It is
now open to allow a broader stakeholder
group, for example, suppliers, customers
and other partners, to report suspected
violations of laws or of the Code of
Business Ethics. Furthermore, the report-
ing violations process is now published
on www.ericsson.com to give all stake-
holders access. In 2012 the number of
violations reported through Corporate
Audit’s reporting violations mailbox in-
creased somewhat, from seven in 2011 to
16 in 2012. Of the 16 reported incidents,
two concerned corruption (bribe-taking).
All received reports are reported to and
discussed in the Compliance Forum which
takes a decision on how the report shall
be handled and initiates an appropriate
investigation. This investigation is carried
out through our Corporate Audit unit or
other appropriate functions. What happens
next depends firstly of the outcome of
that investigation and secondly on the
nature of the matter. Our basic principle
is that all breaches of the code or other
misconduct result in at least a formal
warning for the employee or other person
concerned and then there is a number of
steps that the company will take depend-
ing on the nature and severity of the
breach including termination of employ-
ment and reporting to the local police.
In addition to investigations related to the
reporting violation process, Corporate
Audit is conducting on-going audits of
Ericsson’s operations worldwide. Audit
findings in those audits, which are based
on a risk assessment and other available
information, could also lead to further
investigations when there are indications
of potential breaches of the Code of
Business Ethics.
The Audit Committee of the Board of
Directors are regularly informed about
audits conducted and all matters that are
reported through our reporting violations
system on a regular basis.
Partnering to fight
corruption
Ericsson joined the World Economic Forum Partnering Against Corruption
Initiative (PACI) in 2012, a private-sector initiative to counter bribery and provide
a platform for corporate anti-corruption programs. Part of PACI’s mission is to
establish rules and provide industry guidance on how to deal with corruption.
As a signatory, Ericsson commits to a zero-tolerance policy against corruption,
and to implement systems and controls that fulfill that commitment. Ericsson
will now engage in joint efforts with other signatories to combat corruption.

ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 39
Conducting business responsibly
Ericsson focuses on continuous improvement in managing our
supply chain to ensure our suppliers meet the high social,
environmental and ethical standards set out in the Ericsson
Supplier Code of Conduct (S-CoC) requirements. Online training
in 13 languages is publicly available for suppliers and other
stakeholders on Ericsson’s website, along with other material.
Assessing risk
All Ericsson Regions and Business Units have trained auditors
and procedures in place to identify and assess high-risk suppliers
and to conduct and follow up S-CoC audits and on-site assess-
ments. A systematic and documented approach for identifying
high-risk suppliers assesses regional risk factors. Prioritized risk
areas include working at heights and chemical handling and pri-
oritized risk categories include die-casting and network roll-out;
tower manufacturing and galvanization; enclosures; mechanical
parts; power supply; printed circuit board manufacturing, ware-
housing, logistics and recyclers.
Monitoring supplier performance
In 2012, over 640 supplier Code of Conduct audits and on-site
assessments were performed by Ericsson’s 179 S-CoC auditors
(see graph). The number of audits rose while on-site assess-
ments decreased .This is in line with our effort to prioritized the
more robust audit procedure rather than assessments.
Year on year, analyses of our auditing activities demonstrate
significant improvement in the supply chain. A review of audit
reports from 65 suppliers audited in both 2011 and 2012 showed
that critical findings declined by more than 50%. Improvement
areas vary between regions and supplier categories but include
areas such as overtime, environmental management, corrective
and preventive actions following incidents and communication of
CoC requirements further down the supply chain.
Environmental management and performance have always
been prioritized in S-CoC audits. To further enhance this area,
a program for focused Environmental Audits was launched in India
Clear links in the supply chain
and Northeast Asia in 2012, as a complement to the existing
S-CoC audits. In 2013, this program will include at least two
additional regions.
In 2012, Ericsson published detailed Supplier Occupational
Health and Safety (OHS) requirements, including 11 “operational
OHS standards”. These requirements are intended to further help
our suppliers improve their OHS performance. At the same time
they are contractually binding, as part of the S-CoC require-
ments.
Meeting customer requirements
The Joint Audit Cooperation (JAC) is a cooperation of nine
European telecom operators. JAC members conduct Corporate
Responsibility audits of their suppliers, including Ericsson facto-
ries, and share the audit results between the nine JAC members.
The members of JAC, all of whom are Ericsson customers, are:
Belgacom, Deutsche Telekom, France Telecom, KPN, Swisscom,
Telecom Italia,Telenor Group,TeliaSonera, andVodafone. Ericsson
sites and Ericsson suppliers have been audited by JAC auditors
in 2011 and 2012, with satisfactory results.
SUPPLIER CODE OF CONDUCT – AUDITS AND ASSESSMENTSPERFORMANCE OF SELECTED SUPPLIERS – GLOBALLY
Number of auditors Number of audits
Number of assessments
Supplier Code of Conduct
Audits and Assessments
2008 2009 2010 2011 2012
600
500
400
100
200
300
0
50
265
300
130
528
503
150
550
218
170
392
270
179
494
152
Source: Ericsson
15.1%
27.1%
57.8%
Critical
Warning
Conformity
6.6%
24.8%
68.7%
Performance of selected suppliers − globally
2011 2012
Source: Ericsson
Reaching out to our suppliers
Ericsson held a forum in 2012 with selected key suppliers to
discuss energy efficiency and greenhouse gas emissions, since
suppliers play an important role in helping Ericsson to reduce its
indirect emissions.The forum resulted in sharing of best practices
and challenges related to reducing, measuring and reporting
greenhouse gas emissions and established networks for knowl-
edge sharing and joint initiatives.
Listen to Ericsson’s expectations for suppliers in
the Supplier Code of Conduct program.
Source: Ericsson Source: Ericsson
40 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
Conducting business responsibly
Uses of conflict minerals in Ericsson products
Tracing conflict minerals
Ericsson is taking steps to increase the transparency regarding
‘conflict minerals’ in our supply chain. These minerals include
tantalum, tin, gold, or tungsten, which may be mined in condi-
tions of armed conflict and human rights abuses, notably in the
Democratic Republic of Congo (DRC) and neighboring countries.
All the four minerals can be used in electronic components in our
products. Tin is the most widespread and used in the solder in
almost all electronic products.
Due to the small quantities and the long supply chain with several
actors between Ericsson and the smelters, and between the
smelters and the actual mine, traceability is very complex.
To effectively address the issue of conflict minerals, including
compliance with section 1502 of the Wall Street Reform and
Consumer Protection Act and the disclosure rule adopted by the
US Securities and Exchange Commission during 2012, Ericsson
takes active measures in accordance with its sourcing and product
management processes. The first disclosure is due in May 2014.
Ericsson’s suppliers are expected to comply with the Ericsson
list of “Banned and Restricted Substances”, which now states
that suppliers must establish due diligence processes consistent
with the OECD Due Diligence Guidance for Responsible Supply
Chains of Minerals from Conflict-Affected and High-Risk Areas
and to report, upon Ericsson’s request, on the use of conflict
minerals and on actions taken to verify the origin of used conflict
minerals.
Our longstanding use of material declarations means the company
already has significant awareness of the products where conflict
minerals are used, which will assist greatly in identifying suppliers
important in the further assessment of mineral origin.
Most suppliers in the pilot were well prepared for the upcom-
ing legislation and were able to report on smelters used in their
supply chain. Extensive inquiries and due diligence efforts are
expected to be required in order for Ericsson to be able to fulfill
the new rules and make the requested disclosures. During 2012,
Ericsson piloted the common industry questionnaire developed
by the Global e-Sustainability Initiative (GeSI) and the Electronic
Industry Citizen Coalition (EICC) with our major suppliers of tan-
talum- and tungsten-containing components. We found that most
suppliers in the pilot were well aware of the issue. We received
more than 160 unique smelter names in this pilot.
Ericsson is a participant of the Extractives Workgroup, a collabo-
ration between GeSI and the EICC, focusing on conflict minerals.
Ericsson is also active in the ongoing standardization regarding
conflict minerals via the Electronics Industries Association, IPC.
Conflict-free smelters
The Electronic Industry Citizenship Coalition (EICC) and
Global e-Sustainability Initiative (GeSI) have jointly developed
the Conflict-Free Smelter (CFS). This voluntary program, open
to all industries, involves independent third party evaluation
of smelter and refiner procurement to determine whether
processed materials originate from conflict-free sources.
Due to the complexity of global supply chains and several
steps between the original equipment manufacturers and the
mine it is very difficult, or almost impossible, for individual
companies to ensure that minerals contained in their products
are conflict free. This is where the CFS global program fills an
important gap in responsible sourcing by creating a credible
system for all industries to enable conflict free sourcing of
minerals. The CFS program assesses smelters or refiners
of targeted minerals and provides validation that they are
conflict-free. To date only a few of all worldwide smelters
are certified, and at the end of 2012 there were still no
certified smelters for tin or tungsten. Participation from
other industries is vital for the success of the program.
Uses Tantalum (Ta) Tin (Sn) Tungsten (W) Gold (Au)
Usage in Ericsson products. Small amounts used in
certain capacitors.
Among Ericsson used
capacitors less than 2%
contain tantalum.
As solder in printed
circuit boards. Tin has
replaced lead as common
solder metal and almost
all Ericsson printed circuit
boards are soldered with
tin solder.
Small amounts in specific
electronic components,
mainly oscillators.
Small amounts in
electronic devices.
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 41
LEADING WITH VALUES
Our People Strategy centers on building the best talent in the industry. We aim to attract the
best people, develop them to reach their full potential, and engage them every step of the
way. Our core values of respect, professionalism and perseverance are embedded in all that
we do, and provide the foundation for achieving a diverse, talented and high-performing
workplace.
Leading with
values
42 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
110,000We are more than 110,000 people working for
customers in more than 180 countries
LEADING WITH VALUES
At Ericsson, people are our most valuable asset, critical to
maintaining our global leadership in an increasingly complex and
dynamic market. Our People Strategy is focused on building the
best talent in the industry. We aim to attract, retain, and develop
a diverse workforce that can deliver on a profitable growth
strategy for the company.
Efficient, effective, engaged
We nurture talent throughout the entire employee lifecycle, from
finding the right person for the job to providing opportunities to
grow and develop, to engaging people throughout their careers.
We utilize workforce planning to help ensure a high-performing
workplace.
Three factors must be in balance to attract, retain and develop
the best people: efficient use of resources, effectiveness to
achieve quality performance, and engagement. Ericsson has
a very high level of employee engagement, supported by the
consistently high response rate to the annual employee survey,
Dialog. In 2012, this was 94%, exceeding industry benchmarks.
Values at the core
The Ericsson core values – respect, professionalism and
perseverance – guide all that we do, and form the basis of how
we demonstrate leadership. We see all of our 110,000 employees
as leaders. We also expect our managers to lead, not just man-
age, by providing proper feedback, setting clear goals and being
good communicators.
During 2012, we have made big investments in globalizing our
processes and tools to further improve our effective management
of talent, and this will continue during 2013.
Sustainability motivates talent
Increasingly, people want to work for a company with values,
which affords them opportunities to develop and thrive, and
which contributes in positive ways to society. For Ericsson,
that translates into Technology for Good.
This is especially important for attracting and developing young
talent. They are not only among the most well-informed genera-
tion of workers, thanks to the digital age, but seek out companies
with a social conscience.
All employees at Ericsson are encouraged to learn about
sustainability and corporate responsibility through an e-learning
program. Since 2010, over 20,800 employees have completed
the program, and the training is part of New Employee Learning
Milestones. In addition, they have opportunities to actively en-
gage in sustainability and corporate responsibility through global
programs like Ericsson Response (page 19) but also through
contributions at the local level in many ways.
Employee engagement
2012 2011 Unit
Engagement index 77 77 %
“I am proud to say that I work
for Ericsson”
88 89 %
Overall, I am extremely satisfied
with Ericsson as a place to work
80 80 %
I would recommend Ericsson
as a great place to work
77 78 %
Respect
Professionalism
Perseverance
ERICSSON’S CORE VALUES
Our values are the foundation of our culture.
They guide us in our daily work, in how we relate to
each other and the world around us and in the way
we do business.
Engaging a diverse workforce
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 43
We constantly re-examine the leader-
ship competencies needed to lead our
business. As our business reality evolves,
so do our definitions and demands on
high-quality leadership. A rigorous annual
process identifies, assesses, and devel-
ops people to assume strategic roles in
the company. We continuously review
our leadership pipeline to ensure we are
developing the right leadership compe-
tencies and capabilities at all levels of the
organization.
Meeting demand
for global leadership
High engagement and performance
requires strong leadership, which in turn
fosters innovation. We expect our leaders
to communicate well, set clear goals and
ensure that goals are followed up regu-
larly – feedback and coaching is part of
the daily routine.
We have best-in-class management de-
velopment programs like Excellerate and
Ericsson R&D Global Graduate Program
which help attract top talent from around
the world.
Securing the talent pool
Finding the top talent in the industry
means attracting and selecting the best.
At university level we focus our recruiting
efforts at global and regionally distin-
guished institutions. When selecting
experienced hires, we attract from the
foremost companies in the industry, and
utilize a selection process aligned to our
critical competencies.
There is a great need to encourage more
young people to pursue careers in ICT,
even before they enter university. We
have engaged in programs like Connect
To Learn, focused on secondary educa-
tion for girls, in part to encourage more
girls to pursue ICT (page 14). While still
a young program, we hope to explore in
the future how Connect To Learn could
contribute to increasing female talent,
especially in emerging markets where we
see the greatest potential for growth in
the future.
LEADING WITH VALUES
Employees
2012 2011 2010 2009 2008 Unit
Year end 110,255 104,525 90,261 82,493 78,740 No.
Average 112,758 103,130 91,825 86,360 78,989 No.
Average employment 7.6 7.5 8.0 8.0 7.5 Years
Full time 109,071 103,524 89,251 81,391 - No.
Part time 1,184 1,001 1,010 1,102 - No.
Temporary employees 766 901 978 693 1,124 No.
Employees who have left
Ericsson
12,280 10,571 10,066 9,147 3,415 No.
Employees who have joined
Ericsson
18,010 24,835 17,834 12,900 8,144 No.
Employees working on
overseas assignment
1,094 1,184 1,240 1,428 - No.
Having a purpose beyond profit is
increasingly important for attracting top
talent today, especially among young
people, and Technology for Good is an
excellent example of what makes us
stand out as an employer.”
Bina Chaurasia
Senior Vice President and Head of Human Resources
44 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
Our competence development programs
prepare our people to meet the challenges
of an industry experiencing dramatic
technological shifts. Through classroom
or online learning, employees constantly
acquire knowledge and evolve new com-
petencies, with learning plans agreed and
documented in individual performance
plans.
In 2012, over 1.7 million total hours
were spent on formal learning (online or
classroom based) with an average 18
hours of training per employee and over
75% of employees have taken some form
of structured e-learning or classroom
training, as well as on-demand course
materials and tutorials.
Learning with business results
The Everyday Learning suite of learning
methods and tools helps employees align
learning activities, skills acquisition and
capabilities in the workplace for current
and future needs.
Future ready
According to the 2012 employee engage-
ment survey Dialog, employees believe
that they are getting the training and
development needed to keep up with
customer demands (5% above industry
average) and that they are given a real
opportunity to improve their skills and
competencies through leveraging
Everyday Learning methods and enablers
(6% above industry average). The Dialog
results also showed that managers are
being proactive and engaged in their
employees’ growth and development
needs (8% above industry average).
Learning at fingertips
The internal learning ‘smart’ web portal
managed by Ericsson Academy handles
over 25,000 unique visitors per month and
provides approximately 7,000 learning
targets, ranging from instructor-led
training, technical labs and workshops
to tutorials, webinars, and collaboration
forums.
Our learning vision:
– Just enough.
– Just in time.
– Just for me.
LEADING WITH VALUES
An efficient infrastructure and IT tools for
collaboration support learning and know-
ledge sharing among employees, and
with our partners, customers and suppliers.
Focusing on key competencies
Maintaining our key competencies in
technical areas is critical. For 2012,
we set a target to expand the Ericsson
Technical Certification Program (ETCP)
to include more technology areas.
The current scope of the technical
domains includes IP Broadband and
Core, Media and Applications, Radio
Access Networks, and Solutions.
The cumulative number of passed exams
increased by nearly 200% during 2012.
In a fast-paced industry, competence development is at the top of the agenda for Ericsson.
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 45
Focus on
diversity
A diverse workforce is a strong, competi-
tive, innovative and resilient workforce.
Ericsson has a focused strategy aimed at
ensuring that our employee base and our
leadership teams are as diverse as the
world in which we operate.
Focus on diversity
As we are working for customers in 180
countries around the world, a diverse
workforce is extremely important to
Ericsson. Our definition of diversity
extends beyond gender, race, religion,
ethnicity, age and other established
parameters to differences in experience,
personalities, thoughts, family situation etc.
While we focus on enhancing diversity
from many different perspectives,
a particular effort has been made over
the past few years to increase female
representation in leadership roles. Nearly
a third of the members of the Executive
Leadership Team were women in 2012
(see graph), a substantial increase in the
past five years; the same percentage have
nationalities other than Swedish. Similarly,
the number of women in the top 250 most
senior positions also continued to rise
(see graph).
There is still much work to be done.
The number of women in Ericsson’s total
workforce is 22%, reflective of a male-
dominated industry and the recruitment
base from engineering schools. To ad-
dress this challenge Ericsson has a three-
fold global program which starts with
top-level commitment, is built in as part
of the talent management process, and
empowers regional leadership to tailor
diversity activities to their needs and their
markets. Now that we have diversity plans
in place for every Region, Business Unit
and Group Function, our focus for 2013 is
to execute on these plans.
Our main focus will be on:
•	 Recruiting more women into core
business areas
•	 Identifying female leadership talent
early in career
•	 Developing talent to increase
proportion of senior and executive
female leaders
•	 Securing support mechanisms for
recruiting, promoting and retaining
women
Addressing ICT gender gap
Externally, Ericsson supports a host of
activities in support of greater diversity in
society, particularly focused on women in
executive roles and encouraging girls and
women in ICT careers or education:
•	 In March 2012 Ericsson, as a member
of the European Round Table of
Industrialists signed a voluntary target
to increase the number of women in
decision-making roles
•	 Ericsson is among ten Swedish
companies in the Battle of the
Numbers, a private sector project
aimed at raising the number of women
in operational and decision-making
positions
•	 Ericsson is a member of the Women
Leading Women in ICT Action Group,
launched in September 2012, co-led
by the Institute of International
Education (IIE), the US Office of
Global Women’s Issues and the Global
Fund for Women, to help build the
pipeline of women and girls entering
ICT and enhance the retention and
advancement of women studying and
working in ICT, among other aims
•	 Ericsson is a member of the
Broadband Commission Working
Group on Gender
EMPLOYEES BY AGE AND GENDER 2012
30,000
35,000
15,000
20,000
25,000
10,000
5,000
0
Employees by age and gender 2012
Female
Male
26-35Under 25 36-45 46-55 Over 55
Source: Ericsson
LEADING WITH VALUES
FEMALE REPRESENTATION (Percent)
30
15
20
25
10
5
0
Female representation
Percent
Overall workforce
Line managers
Executive Leadership Team
20092008 2010 2011 2012
Source: Ericsson
Diversity
2012 2011 2010 2009 Unit
Executives with a background other than Swedish
(Top 250 positions)
55 50 50 - %
Executives with a background other than Swedish (ELT) 29 29 36 15 %
At Ericsson, diverse teams stimulate innovative thinking and new approaches to challenges.
Source: Ericsson Source: Ericsson
46 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
Health and safety top priority
A strong health and safety culture, backed by a rigorous system
of responsibility and accountability, is a top priority at Ericsson.
Beyond regulatory compliance, a robust global approach to
Occupational Health and Safety (OHS) delivers business benefits
through reduced costs, improved morale and increased produc-
tivity. Customer demands for OHS excellence are increasing.
In 2012, we updated our OHS policy and strengthened our
practices to meet these expectations.
Ericsson’s global operations are certified to the OHSAS 18001
requirements to deliver better risk control and improved perfor-
mance. OHS is integrated in working processes and as part of
the Ericsson Group Management System (EGMS) undergoes
internal audits as well as annual external audits by assurance
provider Intertek to ensure Ericsson meets OHSAS 18001. In
2012, we introduced a best-in-class OHS Supplier Requirements
Standard (see Supply Chain page 40) to underscore the impor-
tance of this area in our supply chain.
Tracking root cause
Our aim is to reduce the number and severity of OHS incidents.
All incidents are investigated for root causes and OHS profes-
sionals in the organizations receive regular training. An improved
framework for reporting incidents will be launched in 2013. Sharing
best practices and measuring incident investigation quality are
among the OHS global targets for 2013.
Safety culture
Ericsson works hard to increase OHS awareness among
employees. In 2012, a target to roll out basic OHS training to
25% of employees was exceeded by 10%. In 2013, each region
will carry out a locally tailored health and safety campaign, with
progress reviewed quarterly.
Regrettably, major incidents do arise. In 2012, seven workplace
fatalities, one at Ericsson and six at suppliers, occurred at Ericsson
operations (down from 11 in 2011), in the following risk areas:
climbing and working at heights, driver and vehicle safety and
construction/civil work and working at construction sites.
Ericsson considers workplace fatalities unacceptable and is
stepping up OHS practices to achieve its ultimate goal of zero
fatal incidents.
Radio waves
and health
Although declining in most countries, there is still some
public concern that radio waves from mobile phones and
base stations may cause health problems.Yet numerous
science reviews by the World Health Organization (WHO)
and other expert organizations conclude that electromag-
netic fields at levels within the limits prescribed by public
health authorities cause no adverse effects to human
health. Ericsson applies stringent product testing and in-
stallation procedures with the goal of ensuring that radio
wave exposure levels are below established safety limits,
and supports independent research into radio waves and
health. For more information, visit www.ericsson.com.
LEADING WITH VALUES
OCCUPATIONAL HEALTH AND SAFETY
Fatalities and major incidents, Ericsson operations
Fatalities Major incidents
2012 2011 2012 2011
Total 1 1 20 21
North America 0 0 0 0
Latin America 0 1 19 19
Northern Europe & Central Asia 0 0 0 1
Western & Central Europe 0 0 0 0
Mediterranean 0 0 0 0
Middle East 0 0 0 0
Sub-Saharan Africa 0 0 0 0
India 1 0 1 0
China & North East Asia 0 0 0 1
South East Asia & Oceania 0 0 0 0
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 47
objectives AND achievements
Objectives and achievements
As part of the sustainability strategy process, Ericsson has for several years set a series of
annual objectives within the five key issue areas of our sustainability and CR performance.
Progress on achievement of the annual targets is reported on pages 48-49 along with new
objectives set for 2013. See our long-term objectives on page 50.
Status Objectives 2012 Achievements 2012 Objectives 2013
Status Objectives 2012 Achievements 2012 Objectives 2013
Enabling communications for all
Enabling a Low-Carbon Economy
Status Objectives 2012 Achievements 2012 Objectives 2013
Reducing our Environmental Impact
Deploy Connect To Learn in eight new schools in
Millennium Villages, and extend the Connect To Learn
to two additional countries.
Deployed Connect To Learn in four schools due to
political unrest in two countries; expanded to four
additional countries.
Deploy ICT in education projects to 10,000 students
by 2013.
Define baseline for independent monitoring and
evaluation study for ICT and education.
Defined baseline with data from 25 schools to serve
as input to a Collaborative Action Research project
with Earth Institute at Columbia University.
Complete Collaborative Action Research project on
ICT and education with Earth Institute at Columbia
University.
150,000 refugees registered in the Refugees
United database.
Registered approximately 185,000 users in
the Refugees United database.
Increase number of refugee registrations in
Refugees United database to 300,000.
Support Youth Peacemaker Network and PeaceEarth
Foundation with ICT tools and training in three
countries.
Have Ericsson mobile wallet platform ready for
service in ten countries by the end of 2013 to increase
financial inclusion among unbanked.
10% Ericsson carbon footprint intensity reduction
measure as CO2
emissions per subscriber, including
Ericsson own activities and products in operation.
Reduced Ericsson carbon footprint intensity by 22%
for Ericsson own activities and 16% for products in
operation.
The five year carbon footprint intensity target has been
achieved in four years. For products in operations,
in 2013 we will establish a new energy performance
baseline.
Reduce CO2
emissions per employee by 5% on
Ericsson own activities (business travel, logistics and
facilities).
Reduce the number of air flight trips by
10% (baseline 2011).
Reduced the number of employee air flight trips by
12%.
See objective 2013 above and long-term objective.
Increase outbound surface shipping to 75% using the
global share of surface transport indicator by weight.
Increased outbound surface shipping to 80%. See objective 2013 above and long-term objective.
Reduce energy usage by 3% per head. Reduced energy usage in Ericsson offices by
3.6% per head.
See objective 2013 above and long-term objective.
Define an implementation plan for our next
infrastructure consolidation project, including data
rooms, data centers, and test labs and evaluate the
measures found in the energy audits.
Defined implementation plan including baseline
estimates of the energy usage of our test environment
labs, and PUE (Power Usage Effectiveness).
See objective 2013 above and long-term objective.
Achieve 4.5% of WEEE take-back vs. Equipment
Put on Market (baseline 2011), while continuing to
ensure less than 5% of WEEE treated by Ecology
Management Program is disposed of in landfill.
Achieved over 5% of WEEE take-back vs. Equipment
Put on Market, while disposing less than 2% of waste
in landfill.
Achieve 10% of WEEE take-back vs. Equipment
Put on Market, while continuing to ensure less
than 5% of WEEE treated by Ecology Management
Program is disposed of in landfill.
Show how ICT contributes to a low-carbon economy
by investigating the impact of at least five different
solutions.
Assessed impact of three ICT-enabled solutions for
low-carbon economy: smart grid, smart work, and
connected buses.
Develop selected cases demonstrating the
ICT-enablement potential for the low-carbon economy.
Launch Broadband Commission Report on Climate
Change, and support Broadband Commission
Statement for Rio+20.
Launched Broadband Commission Report, and A Call
to Action statement from the Broadband Commission
to Rio+20.
Implement the new International Telecommunication
Union (ITU) recommendation for greenhouse gas
inventory of organizations.
Implemented the main requirements for data
collection, calculation and record keeping when
calculating emissions. A plan to implement the
remaining ITU-T L.1420 requirements is in place.
Develop a platform for dialogue and knowledge sharing
on ICT impact on energy in the low-carbon economy.
Define broadband blueprint and assessment
methodology for sustainable cities.
48 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
objectives AND achievements
Status Objectives 2012 Achievements 2012 Objectives 2013
Conducting business responsibly
Conduct annual Sustainability and Corporate
Responsibility review for the Ericsson Board of
Directors.
Conducted the annual Sustainability and CR annual
review for the Ericsson Board of Directors.
Continue annual Sustainability and Corporate
Responsibility review for the Ericsson Board of
Directors.
Update Code of Business Ethics to reflect UN
Principles for Business and Human Rights Guidelines
and initiate a new acknowledgement request for all
employees.
Updated Ericsson Code of Business Ethics to reflect
UN Guiding Principles on Business and Human Rights
Guidelines.
Close to 100% of Ericsson employees worldwide have
completed the acknowledgement process.
Launch Business Learning Program on human rights
with Shift. Ensure country risk-screening process fully
operational and complete at least one Human Rights
Impact Assessment (HRIA).
Implement Environmental Audit in at least two
Regions.
Implemented Environmental Audits in two Regions:
India and Northeast Asia.
Implement expanded Environmental Audit program in
at least two regions which indicate higher risk.
Achieve 90% of all Strategic Sourcing personnel
complete the Code of Conduct training for Suppliers.
Achieved 92% completion rate for training of Regional
Strategic Sourcing.
Achieve 95% completion rate of Code of Conduct
Training for Suppliers by Strategic Sourcing personnel.
Maintain and develop the Supplier Code of Conduct
Program; all Regions and Units to have auditors
and risk-based audit plans updated, and perform
and follow up audits according to plans to ensure
continual improvement among critical suppliers.
Updated risk-based audit plans in all Regions
and Units, and performed and followed up audits
according to plans among critical suppliers.
All regions and relevant units to have Supplier Code
of Conduct auditors who conduct and follow up risk
based audits to ensure continual improvements.
Achieve significant S-CoC performance improvements
among selected suppliers audited in both 2011 and
2012. Target: Reduce the number of Critical findings
by >50% from 2011 to 2012.
The number of critical findings was reduced by 56%
from selected suppliers audited in both 2011 and
2012.
Reduce the number of critical findings by >50% among
selected suppliers audited two consecutive years.
Complete Supplier Code of Conduct Auditor refresher
training for 100% of all Supplier Code of Conduct
auditors.
Arrange key supplier forum on initiatives relevant on
sustainability and corporate responsibility issues.
Held forum with selected suppliers to discuss energy
efficiency and greenhouse gas emissions.
Arrange at least four local Supplier Workshops with
Code of Conduct focus.
Complete update to processes and procedures
around conflict minerals, including individual supplier
assessments.
Updated Banned and Restricted Substance list to cover
conflict minerals, used both in supplier agreements and
product management process. Selected suppliers were
assessed using a Conflict Minerals Reporting Template
developed by EICC and GeSI.
Partly achieved Not achievedTarget achieved
Status Objectives 2012 Achievements 2012 Objectives 2013
leading with values
Expand Ericsson Technical Certification Program
(ETCP) to cover more technology areas.
Certification domains expanded to include
IP Broadband and Core, Media and Applications,
Radio Access Networks, and Solutions.
Increase our commitment to technical leadership by
expanding our technical certifications supported by
training from 22 to 33.
Expand the Employee Engagement Program as part
of the wider Brand Engagement Program open to all
Ericsson employees.
Conducted employee engagement pilot and will
continue to assess expansion in 2013.
Establish diversity council and long-term goals
on diversity.
Launch global learning solutions which address key
competence gaps critical for employee and company
success.
Launch a Global Employee Referral Program to further
integrate our employee engagement into our ways of
working and bringing exceptional talent to Ericsson.
Increase employee knowledge and awareness of OHS
issues: 25% of employees will take a basic OHSAS
training in 2012.
35% of employees completed the basic Occupational
Health and Safety e-learning.
Conduct Occupational Health and Safety campaign
on health aspects in each Region.
Establish root cause analysis in Occupational Health
and Safety incident investigations.
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 49
Long-term Objectives
Long-term Objectives
Long-term Objectives Long-term Objectives
Long-term Objectives
Long-term Objectives
Long-term Objectives
Enabling communications for all Conducting business responsibly
Reducing our Environmental Impact
Enabling a Low-Carbon Economy
Leading with values
Advocacy and support for Broadband Commission for Digital Development’s
2015 targets and post 2015 development agenda.
Deploy ICT in education projects to 50,000 students by 2015.
Achieve one million registrations in the Refugees United database by 2015.
Document connection between technology, development and peace with ICT tools and
training by 2015.
Be one of the key drivers to increase financial inclusion in an open financial ecosystem,
and make it significantly simpler and more affordable to make a financial transaction,
over a mobile device, whoever or wherever you are.
Continue to regularly engage Ericsson Board in Sustainability and CR as appropriate.
Complete two year Business Learning Program, on Business and Human Rights,
and implement improvements.
Integrate adequate human rights and CR risk measures in group management systems.
No observed or reported failure by Ericsson Sourcing to fully consider Code of Conduct
and Environmental compliance when evaluating and selecting suppliers by 2017.
Ericsson’s supplier-related ethical and environmental risks are continually reduced.
The supplier year-on-year improvement, measured as the reduction of critical findings,
shall exceed 60% in 2017.
Maintain 100% up to date training level for supplier code of conduct auditors.
Reduce amount and severity level of Occupational Health and Safety incidents and
accidents.
Maintain absolute CO2
e emissions from Ericsson own activities for business travel,
logistics and facilities in 2017 at the same level as 2011, supporting Company´s
long-term growth ambition.
Achieve 50% of WEEE take-back vs. Equipment Put on Market in 2017 while continuing
to ensure less than 5% of WEEE treated by Ecology Management Program is disposed
of in landfill.
Deliver opportunities to address sustainable development challenges using our core
business in three cities to address sustainable urbanization.
Develop selected cases that show the connection between business opportunities and
the low-carbon economy.
Establish a globally agreed industry position around the potential of ICT for low carbon
economy with key stakeholders.
Reduce amount and severity level of occupational Health and Safety incidents by
consistently identifying and controlling our health and safety risks, working toward
our long term goal for zero fatalities.
Increase employee knowledge and awareness significantly on Occupational Health
and Safety.
In 2012, as part of our long-term strategy to continuously improve our sustainability and
CR performance, Ericsson has set long-term objectives (3-5 year) in each of our key issues
areas. We will report on the progress towards these long-term objectives annually.
50 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
ST-Ericsson
ST-Ericsson is a world leader in developing wireless platforms
and semiconductors, providing smarter communication, enhanced
on-the-go entertainment and mobile broadband connectivity
worldwide. Established as a 50/50 joint venture of Ericsson and
STMicroelectronics in February 2009, it has one of most advanced
product portfolios in the industry.
As a global business and thought leader, ST-Ericsson is committed
to the three main areas of sustainable development: environment,
society and the economy. ST-Ericsson has deployed an Environmental
Management System (EMS) that enables us to improve legal com-
pliance, reduce waste, energy consumption and operating costs,
as well as enhance our company reputation and gain recognition.
Respecting the environment
ST-Ericsson implements a voluntary worldwide program aiming to
minimize our environmental footprint in four main areas: CO2
foot-
print, energy, paper consumption and electronic waste. Targets
were set for 2020, with a 2010 baseline.
•	 Reducing our carbon footprint by 30 to 50%: Minimize
our environmental impact by reducing direct and indirect
emissions. This will be done by increasing performance of our
facilities, rationalizing operations, limiting business travel, and
expanding use of video conference facilities and IT sharing
tools.
•	 Reduce our energy consumption by 30 to 50%: We are
moving to low power generation PCs and servers and by
streamlining our R&D centers.
•	 Reduce drastically our paper consumption: We aim to be a
paperless company to minimize depletion of natural resources
and also reduce hazardous substances used in printing. In
2012 we reduced paper usage by 27% with use of SMART
printing services (secured by pin code, double side print).
•	 Reduce electronic waste (WEEE) in Kg/employee by 15 to
25%: Our goal is to minimize our environmental impact by
promoting waste recycling or reuse and ensuring safe disposal
of remaining waste.
Product responsibility
ST-Ericsson is actively supporting sustainable development in
wireless communications by reducing the energy consumption of
its products and to offer our customers the most energy-efficient
products on the market.
The ST-Ericsson PowerHUB™ product family for power management
supports better battery life in mobile devices. In 2012, ST-Ericsson
announced the CG2905, the industry’s first connectivity platform
solution, which provides better power consumption.
Another new product, the NovaThor™ L8540, integrates a dual-core
applicationprocessor with our industry-leading LTE multimode
modem, saving power consumption.
We are also developing future NovaThor platforms using FD-SOI
28nm technology which will allow ST-Ericsson to produce the
world’s fastest and lowest-power integrated LTE smartphone
platform. FD-SOI technology eliminates the need for an electrical
signal on the gate to close the transistor, which saves power.
The sleep mode consumes no power consumption. In addition,
FD-SOI products will enable:
•	 Cooler operation, consuming 25% less power than rival
architectures.
•	 Low power mode that consumes 50% less power
compared with alternative solutions in bulk CMOS.
Moreover, ST-Ericsson is contributing to the reduction of
hazardous substances. All products designed by ST-Ericsson
are Ecopack®2 (lead free + free of brominated and chlorinated
flame retardants) which enable us to deliver in 2012 more than
99% of products in this category.
Business and Social responsibility
ST-Ericsson applies the Code of Conduct promoted by the
Electronic Industry Citizen Coalition (EICC). In addition to
compliance with all relevant laws, regulations and standards
in all of the countries in which we operate, all ST-Ericsson
divisions and organizations and their employees must comply
with the ST-Ericsson Code of Conduct and company policies
& directives. ST-Ericsson, in general, requires suppliers and
their subcontractors to comply with our Code of Conduct and
the EICC and to verify compliance by providing information
and allowing access to their premises.
ST-Ericsson also supports the United Nations Global Compact
initiative. Our Code of Conduct is based on the Global Compact’s
ten principles and is made publicly available.
During 2012, ST-Ericsson has supported many community
initiatives. A campaign to collect old GSM phones in France
resulted in hundreds of phones being collected within our sites,
recycled and the benefits of second hand sales
donated to the French Red Cross.
Promoting economic development
ST-Ericsson is one of the global leaders in high-value entry
wireless platforms, providing communications and Internet
access to people through affordable platforms with additional
value-added features, widening the scope of handset use
cases- and thus increasing business opportunities in developing
countries.
Presentation title Date: 2013-01-31 COMPANY CONFIDENTIAL1 (1)
Active Idle 24 Hours
0%
20%
40%
60%
80%
100%
0 5 10 15 20
RemainingBattery
Record
20min
Call
1h
Browse
1.5h
Play
1h
Stream
1.5h
FD-SOI based Platform
Bulk CMOS based Platform
5 hours More
Web browsing
to go !
Hours of use
1 Day
Tasks
Cooler Smartphone can be used for longer time
NovaThor™ platform running at 1GHz with VARM supplied at 0.65V
FDSOI – COOLER
ST-Ericsson
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 51
auditor’s report
Auditor’s Combined Assurance Report on the Sustainability & Corporate
Responsibility Report
To the readers of the Ericsson Sustainability & Corporate Responsibility Report 2012
We have been engaged by the Executive Leadership Team of Telefonaktiebolaget LM Ericsson (publ)
(“Ericsson”) to perform an examination of the Ericsson Sustainability & Corporate Responsibility (CR) Report
for the year 2012. The Board of Directors and Executive Leadership Team are responsible for the company’s
activities regarding environment, health & safety, social responsibility, and sustainable development, and for
the preparation and presentation of the Sustainability & CR Report in accordance with applicable criteria. Our
responsibility is to express a conclusion on the Sustainability & CR Report based on our examination.
The scope of the examination
We have performed the assurance engagement in accordance with RevR 6 Assurance of Sustainability Reports
issued by Far (institute for the accounting profession in Sweden), as well as AA1000AS (2008) issued by
AccountAbility (type 2 engagement). The objective of an audit is to obtain reasonable assurance that the
information in the Sustainability & CR Report is free of material misstatements. An audit includes examining,
on a test basis, evidence supporting the quantitative and qualitative information in the Sustainability & CR
Report. A review is mainly limited to making inquiries of personnel responsible for sustainability issues, and
applying analytical and other review procedures. Hence, the conclusion based on our review procedures does
not comprise the same level of assurance as the conclusion of our audit. Since this assurance engagement is
combined, our conclusions regarding the audit and the review will be presented in separate sections. Our
assurance engagement includes examination of the following areas, with the purpose of either providing
reasonable assurance (hereafter referred to as audit) or limited assurance (hereafter referred to as review):
1. Our review has included all pages in the Sustainability & CR Report, except page 51.
2. Our audit is limited to the carbon dioxide emissions data regarding Ericsson own activities on page 24-25.
Our assurance, reasonable or limited, does not comprise the assumptions used by the company as to whether or
not it is possible for the company to reach certain future targets described in the report (e.g. goals, expectations
and ambitions).
The criteria on which our examination is based are the parts of the Sustainability Reporting Guidelines G3,
published by the Global Reporting Initiative (GRI), which are applicable to the Sustainability & CR Report, as
well as the accounting and calculation principles that the company has developed and disclosed. We consider
these criteria suitable for the preparation of the Sustainability & CR Report.
In accordance with AA1000AS (2008), we confirm that we are independent of Ericsson. Our review has been
performed by a multidisciplinary team specialized in reviewing economic, environmental and social issues in
sustainability reports, and with experience from the industry Ericsson operates within.
Review procedures
The main procedures of our review have included the following:
a. update of our knowledge and understanding of Ericsson’s organization and activities,
b. assessment of the outcome of the company’s stakeholder dialogue,
c. interviews with representatives of the management to ensure that Ericsson responds to important stakeholders’ concerns
in the sustainability report,
d. interviews with management at group level in order to assess if the qualitative and quantitative information stated in the
Sustainability & CR Report is complete, accurate and sufficient,
e. examination of internal and external documents in order to assess if the information stated in the Sustainability & CR
Report is complete, accurate and sufficient,
f. evaluation of the design of selected systems and processes used to obtain, manage and validate sustainability information,
g. an evaluation of the model used to calculate carbon dioxide emissions,
h. analytical procedures of the information stated in the Sustainability & CR Report,
i. assessment of the company’s declared application level according to the GRI guidelines,
j. assessment of the overall impression of the Sustainability & CR Report, and its format, taking into consideration the
consistency of the stated information with applicable criteria,
52 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
Audit procedures
Our audit has included the following procedures:
a. evaluation of design and functionality of relevant internal controls within the systems and processes used to collect,
manage and validate information on the selected indicators during the reporting period, and
b. reconciliation of reported information with internal and external source documents, and performing detailed tests of the
selected indicators regarding Ericsson own carbon dioxide emissions on page 24-25 in the Sustainability & CR Report.
We consider the evidence collected during our examination to be sufficient and appropriate in order to support
our conclusions listed below.
Conclusions
Our conclusion based on our review
Based on our procedures performed, nothing has come to our attention that causes us to believe that the
information in the Ericsson Sustainability & CR Report which has been subject to our review has not, in all
material respects, been prepared in accordance with the above stated criteria and that Ericsson has not adhered
to the AA1000APS (2008) principles inclusivity, materiality and responsiveness.
Our conclusion based on our audit
In our opinion, the information in the Ericsson Sustainability & CR Report which has been subject to our audit
has, in all material respects, been prepared in accordance with the above stated criteria.
Other information
The following is other information that has not affected our conclusion above. According to AA1000AS (2008),
we have included observations and recommendations for improvements in relation to adherence to the
AA1000APS (2008) principles:
Regarding inclusivity
We see a strong commitment to stakeholder accountability and evidence of numerous engagement activities at corporate
level. We encourage Ericsson to further develop documentation on stakeholder participation processes, and increase
awareness of the AA1000APS principles throughout the organization.
Regarding materiality
We commend the updated process for determining material sustainability issues that Ericsson has launched during the year.
We support Ericsson’s plans to further refine this process, including the criteria used to identify and select relevant issues.
Regarding responsiveness
We observe that Ericsson has processes in place to respond to significant stakeholder concerns, including extensive
communication using various channels. We have no specific recommendations regarding responsiveness.
Stockholm, April 5th 2013
PricewaterhouseCoopers AB
Peter Nyllinge Fredrik Ljungdahl
Authorized Public Accountant Expert Member of Far
auditor’s report
000-150
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 53
memberships and affiliations
Memberships and Affiliations
Broadband Commission for Digital
Development
The Broadband Commission for Digital
Development was launched in 2010 by
the International Telecommunications
Union (ITU) and the United Nations Edu-
cational, Scientific and Cultural Organiza-
tion (UNESCO). Ericsson is a founding
member of the Broadband Commission
and CEO Hans Vestberg is a Commission-
er and leads the Climate Change working
group. www.broadbandcommission.org
Business Call to Action – UNDP
Ericsson is a member of Business Call to
Action (BCtA), which aims to accelerate
progress toward the Millennium Develop-
ment Goals by challenging companies to
develop inclusive business models that
offer potential for commercial success
and development impact.
www.businesscalltoaction.org
Clinton Global Initiative
The Clinton Global Initiative (CGI)
convenes global leaders to devise and
implement innovative solutions to some
of the world’s most pressing challenges.
CGI gathers government officials, busi-
ness leaders, and non-profit directors for
collaboration, sharing ideas, and forging
partnerships. Members devise practical
solutions to global issues through specific
and measurable Commitments to Action.
www.clintonglobalinitiative.org
European Roundtable of
Industrialists
This forum brings together around 50
Chief Executives and Chairmen of major
multinational companies of European
parentage covering many industrial and
technological sectors. As member, Erics-
son signed a voluntary target to increase
the number of women in decision-making
roles and is also in the Energy and Cli-
mate Change Working Group.
Global E-sustainability initiative
(GeSI)
Ericsson is a founding member of the
Global e-Sustainability Initiative (GeSI),
represented on the Board of Directors
and co-chair of the Public Policy Work
Group. GeSI aims to create an open and
global forum for the improvement and
promotion of products, services and
access to ICT to benefit society and the
environment. Sustainable sourcing and
climate change are key issues on the
agenda. www.gesi.org
New Cities Foundation
The New Cities Foundation is a non-profit
Swiss institution founded in 2010 and
dedicated to improving the quality of life
and work in the 21st-century global city,
with a particular focus on new cities in
Asia, the Middle East, Latin America and
Africa. NCF sees cities as humanity’s
most important source of innovation, cre-
ativity and wealth-creation. NCF believes
that achieving the vision of building more
sustainable and dynamic urban communi-
ties can only be done through innovative
partnership. NCF serves a unique role in
developing new models of collaboration
between the public, private and academic
sectors. Ericsson is a founding member
of the New Cities Foundation.
www.newcitiesfoundation.org
Symbio City
SymbioCity is a network of Swedish com-
panies and organizations. It was founded
on the initiative of the Swedish Govern-
ment and Swedish Industry. SymbioCity
is administrated by The Swedish Trade
Council, with offices in more than 60
countries around the world. The head-
quarters is situated in Stockholm.
www.symbiocity.org
United Nations Global Compact
In 2012 we reported according to GC Ad-
vanced level. Ericsson was one of the first
signatories of the UN Global Compact.
www.unglobalcompact.org
UN Sustainable Solutions
Development Network
The network was formed in 2012 to
mobilize scientific and technical exper-
tise from academia, civil society, and the
private sector to support sustainable-
development problem solving at local,
national, and global scales. Ericsson CEO
Hans Vestberg is part of the Leadership
Council. www.unsdsn.org
AWARDS and
recognition
Global 100 Most Sustainable
Corporations in the World
Ericsson is ranked No 30 on the 2013
Global100 list announced at the World
Economic Forum in Davos in January
2013. The Global 100 is an annual project
initiated by Corporate Knights, the com-
pany for clean capitalism.
FTSE4Good
FTSE Group confirms that Ericsson has
been independently assessed accord-
ing to the FTSE4Good criteria, and has
satisfied the requirements to become
a constituent of the FTSE4Good Index
Series, an equity index series designed
to facilitate investment in companies
that meet globally recognized corporate
responsibility standards.
GSMA Global Mobile Award
The Amazon Connection program won
the 2013 Global Mobile Award Best
Mobile Product, Initiative or Service for
for Emerging Markets at Mobile World
Congress. The program is a partner-
ship between Ericsson, mobile operator
Telefonica|Vivo and the non-profit Saude
and Alegria.
Lundquist CSR Online Awards
Ericsson was the to-ranked company in
the Nordic competition of the CSR Online
Awards Nordic 2012. The award assesses
how the region’s biggest companies are
communicating corporate responsibil-
ity online and their ability to engage with
stakeholders through the corporate
website.
Miljörapporten
The Swedish environmental magazine
MiljöRapporten, together with an external
unanimous jury, ranked the Ericsson 2011
Sustainability & Corporate Responsibil-
ity Report first among reports among
54 companies on the OMX Stockholm
Large Cap list. Evaluation criteria were:
overall impression; accessibility; long-
term approach; the business advantage
of sustainability; and credibility. Ericsson
was recognized for its comprehensive
approach, linking operations to solutions
to the global sustainability challenges
most relevant to the business.
54 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
The
carbon footprint
of an average ICT
user is estimated to
decrease 20%
between 2007
and 2020…
…so we are
designing
products and
solutions to
make this
happen…
We are reducing our
environmental impact
throughout our value chain.
Ericsson’s Psi Ψ 3G coverage
solution reduces power
consumption by up to 40%
The Antenna-Integrated Radio
(AIR) cuts energy consumption
by 40%
By 2017, 85% of the world’s
population will have access to
mobile-broadband coverage
via 3G networks
Ericsson increased its video
conference rooms globally by
60% in 2012, contributing to
the reduction of CO2e
emissions per employee
34% of our global
facilities use certified
green electricity
and 74% at measured
European facilities
…and reducing
carbon emissions
in our own
operations.
reducing our
environmental
impact
In Sweden, we have used
100% certified green
electricity since 2008
…finding
smarter ways of
working…
enabling a
low-carbon
economy
The ICT sector contributes
about 2% of global CO2e
emissions, but can help
eliminate a significant portion
of the remaining 98% from
other industries.
ICT solutions
will enable the
low-carbon
economy
of the future…
…and will transform
industries and
cities.
By 2050, 70% of
the global population
will reside in an urban
area or city.
Stockholm Royal
Seaport is an
ICT-enabled city
district that will be
climate-positive
by 2030
ICT
2%
Waste
3%
Forestry 17%
Agriculture
14%
Energy supply
26%
Buildings
8%
Industry
19%
Transport
& travel 13%
The CO2e from an annual
mobile subscription is
equal to driving a car for
about 1.5 hours
Source:
Ericsson and
TeliaSonera, 2012
The SMARTer 2020 study
estimates that ICT-enabled
solutions could reduce
global CO2e emissions by
16.5% in 2020
Source: GeSI
Source:
UN HABITAT
Smart grids can help address
67% of the energy lost due
to inefficiencies before
reaching the consumer
ICT
2%
A 2012 study of eight ICT-related
services in six countries showed they
could produce energy savings of 373
million barrels of oil equivalents per year
373million
Source: Ernest Orlando Lawrence
Berkeley National Laboratory and GeSI
Source: Stockholm Royal
Seaport Innovation
Center
Source: EricssonSource: Ericsson
ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 55
Telefonaktiebolaget LM Ericsson
SE-164 83 Stockholm, Sweden
www.ericsson.com
Concept and editorial production:
Ericsson Sustainability and
Corporate Responsibility Unit
together with One Stone Advisors Ltd.
Design and production: Xerox Mediacenter
Published: April 2013
© Telefonaktiebolaget LM Ericsson 2013
FSC Symbol

More Related Content

PDF
2011 Sustainability and Corporate Responsibility report - Ericsson
PPTX
Matt Peers, CIO at Deloitte - Will we remember the laptop in 2020?
PDF
Connected Worker - How mobile technology can improve working life in emerging...
PDF
Sustainability and Corporate Responsibility report
PPTX
Role of Mobility in Workplace Transformation
PDF
Accenture_Carbon_Connections_Quantifying_Mobiles_Role_in_Tackling_Climate_Change
PDF
Digital Cyprus: Catalyst for Change (Volume 1)
PDF
European tech scaleups report 2016 health tech
2011 Sustainability and Corporate Responsibility report - Ericsson
Matt Peers, CIO at Deloitte - Will we remember the laptop in 2020?
Connected Worker - How mobile technology can improve working life in emerging...
Sustainability and Corporate Responsibility report
Role of Mobility in Workplace Transformation
Accenture_Carbon_Connections_Quantifying_Mobiles_Role_in_Tackling_Climate_Change
Digital Cyprus: Catalyst for Change (Volume 1)
European tech scaleups report 2016 health tech

What's hot (20)

PDF
The New Workplace: Unleashing The Power Of Enterprise Mobility
PDF
DNV Report: 20 years UN Global Compact: Uniting business in the decade of act...
PDF
Telecom Italia - Sustainability Report 2014
PDF
Porous organisations 2020
PPTX
The Five Biggest Education And Training Technology Trends In 2022
PPTX
Ovum Trends to Watch 2014: Enterprise Collaboration and The Workplace of the ...
PDF
Why IT does not matter in Exponential Organizations
PDF
FootprintsVodafone India Sustainability Report 2013-14. Steps today for a bet...
PDF
Accenture United Nations Global Compact: Communication on Progress 2020
PPTX
The Future Of Delivery Robots
PPT
Maitland Waters Social Media @ SOHO house_london_june_6_2011
PPTX
Michael Page Technology Road Ahead Presentation
PDF
Telecom’s future is Social (GSMA Mobile Asia 2013)
PDF
Technology Post COVID19 A Review
PDF
Management of the Triple Bottomline in High Technology Companies
PDF
Medicare-Aged Users Want a Digital Experience and Tools
PDF
Successful E-Commerce Implementation for SMEs
PDF
APPortunity
PDF
Citizen Experience in the Digital Age
PDF
Sensis and the australian search and directories market 2008
The New Workplace: Unleashing The Power Of Enterprise Mobility
DNV Report: 20 years UN Global Compact: Uniting business in the decade of act...
Telecom Italia - Sustainability Report 2014
Porous organisations 2020
The Five Biggest Education And Training Technology Trends In 2022
Ovum Trends to Watch 2014: Enterprise Collaboration and The Workplace of the ...
Why IT does not matter in Exponential Organizations
FootprintsVodafone India Sustainability Report 2013-14. Steps today for a bet...
Accenture United Nations Global Compact: Communication on Progress 2020
The Future Of Delivery Robots
Maitland Waters Social Media @ SOHO house_london_june_6_2011
Michael Page Technology Road Ahead Presentation
Telecom’s future is Social (GSMA Mobile Asia 2013)
Technology Post COVID19 A Review
Management of the Triple Bottomline in High Technology Companies
Medicare-Aged Users Want a Digital Experience and Tools
Successful E-Commerce Implementation for SMEs
APPortunity
Citizen Experience in the Digital Age
Sensis and the australian search and directories market 2008
Ad

Similar to Ericsson Sustainability and Corporate Responsibility Report 2012 (20)

PDF
Technology for Good : 2011 Corporate Responsibility & Sustainability Report
PDF
Technology for Good : 2011 Corporate Responsibility & Sustainability Report
PDF
Ericsson 2015 Sustainability and CR Report
PDF
This is-ericsson
PDF
Ericsson Sustainability and Corporate Responsibility report highlights
PDF
Sections a4 final_high
PDF
Annual General Meeting 2014
PDF
Telia sonera CR Report 2009
PDF
ICT & SDGs
PDF
ICT & Sustainable Development Goals - 2016
PDF
Ericsson Annual Report 2014
PPT
Mobile Networks as an enabler for scalable development
PDF
Ericsson
PDF
Sustainability and Corporate Responsibility Report 2015
PPTX
Networked Society Story 2015
PDF
Transport sector transformation
PDF
Networked society & cities of the future
PDF
2009 Sustainability Report
PDF
Sprint 2013 Corporate Responsibility Report
PDF
Ericsson: Latam Insights - We Enable Change-Makers
Technology for Good : 2011 Corporate Responsibility & Sustainability Report
Technology for Good : 2011 Corporate Responsibility & Sustainability Report
Ericsson 2015 Sustainability and CR Report
This is-ericsson
Ericsson Sustainability and Corporate Responsibility report highlights
Sections a4 final_high
Annual General Meeting 2014
Telia sonera CR Report 2009
ICT & SDGs
ICT & Sustainable Development Goals - 2016
Ericsson Annual Report 2014
Mobile Networks as an enabler for scalable development
Ericsson
Sustainability and Corporate Responsibility Report 2015
Networked Society Story 2015
Transport sector transformation
Networked society & cities of the future
2009 Sustainability Report
Sprint 2013 Corporate Responsibility Report
Ericsson: Latam Insights - We Enable Change-Makers
Ad

More from Ericsson (20)

PDF
Ericsson Technology Review: Versatile Video Coding explained – the future of ...
PDF
Ericsson Technology Review: issue 2, 2020
PDF
Ericsson Technology Review: Integrated access and backhaul – a new type of wi...
PDF
Ericsson Technology Review: Critical IoT connectivity: Ideal for time-critica...
PDF
Ericsson Technology Review: 5G evolution: 3GPP releases 16 & 17 overview (upd...
PDF
Ericsson Technology Review: The future of cloud computing: Highly distributed...
PDF
Ericsson Technology Review: Optimizing UICC modules for IoT applications
PDF
Ericsson Technology Review: issue 1, 2020
PDF
Ericsson Technology Review: 5G BSS: Evolving BSS to fit the 5G economy
PDF
Ericsson Technology Review: 5G migration strategy from EPS to 5G system
PDF
Ericsson Technology Review: Creating the next-generation edge-cloud ecosystem
PDF
Ericsson Technology Review: Issue 2/2019
PDF
Ericsson Technology Review: Spotlight on the Internet of Things
PDF
Ericsson Technology Review - Technology Trends 2019
PDF
Ericsson Technology Review: Driving transformation in the automotive and road...
PDF
SD-WAN Orchestration
PDF
Ericsson Technology Review: 5G-TSN integration meets networking requirements ...
PDF
Ericsson Technology Review: Meeting 5G latency requirements with inactive state
PDF
Ericsson Technology Review: Cloud-native application design in the telecom do...
PDF
Ericsson Technology Review: Service exposure: a critical capability in a 5G w...
Ericsson Technology Review: Versatile Video Coding explained – the future of ...
Ericsson Technology Review: issue 2, 2020
Ericsson Technology Review: Integrated access and backhaul – a new type of wi...
Ericsson Technology Review: Critical IoT connectivity: Ideal for time-critica...
Ericsson Technology Review: 5G evolution: 3GPP releases 16 & 17 overview (upd...
Ericsson Technology Review: The future of cloud computing: Highly distributed...
Ericsson Technology Review: Optimizing UICC modules for IoT applications
Ericsson Technology Review: issue 1, 2020
Ericsson Technology Review: 5G BSS: Evolving BSS to fit the 5G economy
Ericsson Technology Review: 5G migration strategy from EPS to 5G system
Ericsson Technology Review: Creating the next-generation edge-cloud ecosystem
Ericsson Technology Review: Issue 2/2019
Ericsson Technology Review: Spotlight on the Internet of Things
Ericsson Technology Review - Technology Trends 2019
Ericsson Technology Review: Driving transformation in the automotive and road...
SD-WAN Orchestration
Ericsson Technology Review: 5G-TSN integration meets networking requirements ...
Ericsson Technology Review: Meeting 5G latency requirements with inactive state
Ericsson Technology Review: Cloud-native application design in the telecom do...
Ericsson Technology Review: Service exposure: a critical capability in a 5G w...

Recently uploaded (20)

PDF
Dropbox Q2 2025 Financial Results & Investor Presentation
PPT
“AI and Expert System Decision Support & Business Intelligence Systems”
PDF
Agricultural_Statistics_at_a_Glance_2022_0.pdf
PDF
NewMind AI Weekly Chronicles - August'25 Week I
PDF
7 ChatGPT Prompts to Help You Define Your Ideal Customer Profile.pdf
PDF
Profit Center Accounting in SAP S/4HANA, S4F28 Col11
PDF
MIND Revenue Release Quarter 2 2025 Press Release
PPTX
sap open course for s4hana steps from ECC to s4
PDF
Encapsulation_ Review paper, used for researhc scholars
PDF
cuic standard and advanced reporting.pdf
PDF
Optimiser vos workloads AI/ML sur Amazon EC2 et AWS Graviton
PDF
Unlocking AI with Model Context Protocol (MCP)
PDF
Approach and Philosophy of On baking technology
PPTX
KOM of Painting work and Equipment Insulation REV00 update 25-dec.pptx
PDF
The Rise and Fall of 3GPP – Time for a Sabbatical?
PPTX
Understanding_Digital_Forensics_Presentation.pptx
PDF
How UI/UX Design Impacts User Retention in Mobile Apps.pdf
PDF
Spectral efficient network and resource selection model in 5G networks
PDF
Chapter 3 Spatial Domain Image Processing.pdf
PPTX
20250228 LYD VKU AI Blended-Learning.pptx
Dropbox Q2 2025 Financial Results & Investor Presentation
“AI and Expert System Decision Support & Business Intelligence Systems”
Agricultural_Statistics_at_a_Glance_2022_0.pdf
NewMind AI Weekly Chronicles - August'25 Week I
7 ChatGPT Prompts to Help You Define Your Ideal Customer Profile.pdf
Profit Center Accounting in SAP S/4HANA, S4F28 Col11
MIND Revenue Release Quarter 2 2025 Press Release
sap open course for s4hana steps from ECC to s4
Encapsulation_ Review paper, used for researhc scholars
cuic standard and advanced reporting.pdf
Optimiser vos workloads AI/ML sur Amazon EC2 et AWS Graviton
Unlocking AI with Model Context Protocol (MCP)
Approach and Philosophy of On baking technology
KOM of Painting work and Equipment Insulation REV00 update 25-dec.pptx
The Rise and Fall of 3GPP – Time for a Sabbatical?
Understanding_Digital_Forensics_Presentation.pptx
How UI/UX Design Impacts User Retention in Mobile Apps.pdf
Spectral efficient network and resource selection model in 5G networks
Chapter 3 Spatial Domain Image Processing.pdf
20250228 LYD VKU AI Blended-Learning.pptx

Ericsson Sustainability and Corporate Responsibility Report 2012

  • 1. technology forgood ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 Mobility Business Respect Perseverance Professionalism Environment Diversity Anti-corruption Accessibility Transparency Responsible Global Solutions Digital inclusion Engagement Public-private partnership Networked Society Innovation Advocacy Development Energy Employee Broadband Ethics Urbanization Products Services Social media Trust Collaboration Corporate responsibility Connectivity ICT Community Human Rights Cloud Cyber security SustainabilityLocal Refugee reconnection Peace Education Health Livelihood Smart grids Supply chain Cities Climate change Employee engagement
  • 2. ... redefining learning and education... A CONNECTED WORLD IS JUST THE BEGINNING Connecting people is just the start. But what does this mean to me? In the Networked Society, connectivity will be the starting point for new ways of innovating, collaborating and socializing. Freedom, empowerment, and opportunity It’s about bringing us closer to our nearest and dearest... 25% of smartphone traffic and 40% of tablet traffic is video Source: Ericsson Mobility Report, 2012 ... reuniting loved ones... Coursera hosts over 200 online courses for nearly 1.3 million students Source: BBC The world is getting smaller. It took 100 years to connect 1 billion places and 25 years to connect 5 billion people Source: Ericsson Mobility Report, 2012 By 2020 there will be 50 billionconnected devices – 6 for every connected person Source: Broadband Commission, 2012 185,000 people have registered on Refugees United’s family-tracing platform Source: Refugees United A 1 percentage point increase in broadband penetration increases new business registration by 3.8% Source: Stockholm School of Economics, 2012 For every 1,000 connections, 80 new jobs are created Source: Ericsson and Arthur D Little, 2010-2011 Each minute: – 100,000 tweets – 48 hours of YouTube video – 680,000 items shared on Facebook Source: thesocialskinny.com ... and creating a world of conversations. It’s about transforming industries... ... by disrupting established business models... “Why shouldn’t the car be connected? It’s the ultimate mobile device.” Paul Mascarenas, CTO, Ford Motor Company Then: $10 = 1 CD Now: $10 = over 20 million songs streamed to your mobile device using Spotify ... and by creating new job opportunities. Broadband = business The Networked Society will bring significant economic, social and environmental benefits to hundreds of millions of people. It’s about kick-starting economies... Doubling connection speeds yields a 0.3 percentage point increase in GDP Source: Ericsson and Arthur D Little, 2010-2011 ... banking the unbanked... Up to one-third of Kenya’s GDP passes through the mobile banking platform M-PESA Source: Tech Crunch ... and helping solve some huge global challenges. In 2020, ICT could reduce oil consumption by 21.6 billion barrels Source: GeSI SMARTer 2020 report The Millennium Villages Project has brought connectivity to over 500,000 people in 11 countries in Sub-Saharan Africa Source: EricssonSource: Ericsson 2 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 3. the ericsson Vision The Company’s vision is to be the prime driver in an all- communicating world. Ericsson envisions a continued evolution, from having connected 6 billion people to connecting 50 billion “things”. The Company envisions that anything that can benefit from being connected will be connected, mainly via mobile broad- band in the Networked Society that is beginning to come to life. CONTENT and INTRO About Ericsson Communication is changing the way we live and work. When one person connects, his or her world changes. With everything connected, our world changes. Ericsson plays a key role in this evolution, using innovation to empower people, business, and society. We are enabling the Networked Society with efficient real- time solutions that allow us all to study, work, and live our lives more freely, in sustainable societies. Since the company was established in 1876, we have been a leader in telecommunication and we are now expanding our role into an ICT (Information and Communication Technology) solutions provider. Our offering comprises services, software and infrastructure, mainly for telecom operators. Some 40% of the world’s mobile traffic runs through networks that are supplied by us. We provide solutions and services to all major telecom operators in the world. The networks we manage for operators serve about 950 million subscribers. Today we are more than 110,000 people serving customers in more than 180 countries. Our business includes four segments: Networks (the infrastructure that is the basis for all mobile communication), Global Services (managed services, consulting, and systems integration, customer support, network design and optimization and network rollout), and Support Solutions (software for operations support systems and business support systems, TV and media management, and m-commerce). The fourth segment is joint venture ST-Ericsson, offering modems and ModAps (integrated modem and application processor platforms) for handset and tablet manufacturers. Contents 3 3 4 4 5 6 7 8 10 11 12 20 28 34 42 48 51 52 54 The Ericsson vision About Ericsson Technology for Good About this Report Letter from the CEO Taking a strategic approach Managing our key issues Taking a value chain perspective Through the materiality lens Engaging with stakeholders Enabling communications for all Reducing our environmental impact Enabling a low-carbon economy Conducting business responsibly Leading with values Measuring performance Objectives and Achievements joint venture ST-Ericsson Auditor’s Report Memberships and Affiliations ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 3
  • 4. about this report External Assurance and GRI Application Level This report has been assured by PwC according to Far RevR6 (based on the international standard ISAE3000) and AA1000, see Assurance Statement on pages 52-53. PwC also performed a CO2 e audit on Ericsson's own emissions. The GRI G3 guidelines have been used in compiling this Report and a complete GRI compilation appears online. Ericsson’s Sustainability and Corporate Responsibility Report 2012 has achieved an A+ application level, which means the Report has been externally assured, and that the application level has been checked by a third party, PwC. About this report This report, together with additional information available online, summarizes our 2012 sustainability and corporate responsibility (CR) performance. Sustainability and CR are central to Ericsson’s core business and our commitment to the triple bottom line of responsible financial, environmental and socio-economic performance. Corporate re- sponsibility is about maintaining the necessary controls to mini- mize risks, while creating positive impacts for our stakeholders and our brand. A sustainable and responsible approach results in value creation for the company, our employees, our customers, our shareholders and society as a whole. Conducting business responsibly through high standards in business ethics is a top priority. We believe this approach delivers new business oppor- tunities, more efficiency, less risk, greater brand value, market leadership and attractiveness as an employer, and we describe our progress in this report. For 2012, for the first time we are reporting according to the UN Global Compact (UNGC) Advanced Level criteria, which sets a higher standard for reporting among UNGC signatories. Unless otherwise stated, all information and data pertains to activities undertaken from January 1, 2012 to December 31, 2012. The report covers the Ericsson Group, i.e. Telefonaktiebolaget LM Ericsson and its subsidiaries, and provides performance highlights from our joint venture ST-Ericsson. The 2012 Ericsson Annual Report provides information on Ericsson’s structure, nature of ownership and legal form, subsidiaries, as well as changes regarding size, structure, financial performance and ownership during 2012. The 2012 Annual Report and other financial information can be found at www.ericsson.com/investors. The Sustainability and CR Report is available in limited print and can be downloaded from our website with additional content online at www.ericsson.com/sustainability, including our Global Reporting Initiative (GRI) performance summary. To help us improve reporting and ensure transparency, we welcome your feedback and questions on our report and performance. Please email: [email protected]. twitter@ericssonsustain Technology for Good videos (http://www.youtube.com/playlist?list=PL3DDD369426CF84BA) Technology for Good photos (www.flickr.com/photos/ericsson_images/collections) www.ericsson.com/technology-for-good-blog Technology for Good online pinboard (www.pinterest.com/ericssonpins/technology-for-good/) www.facebook.com/technologyforgood Blog technology for good In the Networked Society, Ericsson is the leading advocate of Technology for Good. Mobility and broadband will continue to play a decisive role in the transformation of society, and in five years we believe that 90% of the world’s population will have ac- cess to mobile communication. With this scale, we are presented with an unprecedented opportunity to help address global sus- tainable development challenges. By using broadband, cloud and mobility to address poverty, education, health, human rights, climate change and other chal- lenges, we work to ensure that our technology is a force for good and lasting change. We do this through a wide range of projects, research, advocacy and initiatives, public-private partnerships, social media outreach and other forms of engagement. We focus on the areas where we believe our company and our technology can have the greatest impact on social, economic and environ- mental development. Our approach is to use our core business – our technology and our expertise – to increase the positive impacts and minimize risks, where ever we operate in the world. For more information, visit www.ericsson.com/sustainability. We also welcome you to engage with us via our Technology for Good blog, and to follow us on Facebook and Twitter. For reporting of suspected violations of laws or the Ericsson Code of Business Ethics, see [email protected] Listen to many of our stakeholders and Ericsson experts provide insight on topics discussed in this report. The videos are available at the Technology for Good Youtube channel. 000-150 4 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 5. Dear Stakeholders, The Networked Society presents enormous opportunities to advance sustainable development. Our data shows that by 2017, 85% of the world’s population will have access to 3G mobile communication and 50% will have access to 4G.This will dramati- cally change the ways we can address many of the world’s global sustainability challenges. As an ICT industry leader, we align our sustainability and corporate responsibility (CR) priorities with those set at the global level, like the Millennium Development Goals. We are actively engaged in shaping future sustainable development goals, through activities around the Rio+20 UN Conference on Sustainable Development and other discussions exploring the post-2015 development agenda. We continue to support the ten principles of the UN Global Compact providing a universal framework for business conduct, and this year we are reporting according to Global Compact Advanced. Setting high ambitions Sustainability and CR have been a natural part of Ericsson’s identity and strategy since the days of our founder. Now, it is more important than ever. As of 2012, our Vice President for Sustainability and Corporate Responsibility Elaine Weidman-Grunewald reports directly to me. For 2013, we elevated a Sustainability and CR Leadership target to the Group’s top-level scorecard. We set demanding targets and long-term objectives for our sus- tainability and CR performance. In 2012 we achieved our five-year carbon intensity reduction target a year early, and set new ambi- tious targets on reducing the carbon footprint of our own activities. By continuing to drive global standards and economies of scale, combined with innovative public-private partnerships, we aim to make mobile communications more affordable and accessible. We also work to demonstrate the positive role of technology, where it can shape low-carbon economies, increase access to education, and support other humanitarian issues such as refugees, peace and conflict resolution, and disaster response. Focus on business ethics Ericsson’s strong commitment to ethical business practices is based on respect for internationally agreed principles. Our gover- nance system ensures a consistent approach in how we run the business. Openness, transparency, and accountability are central to our long-term strategy and success and we recognize that growth must be balanced with responsibility. In 2012, Ericsson re-established a presence in Myanmar for the first time since 1998, following ongoing political reforms. Our research shows the clear positive benefits of mobile communications for the people of Myanmar, but at the same time we must engage responsibly in Myanmar with respect to human rights. In 2012, we joined the Institute for Human Rights and Business initiative on Myanmar and will work with the non-profit, human rights expert group Shift over the next two years to strengthen our human rights framework. Engaged in the solutions Different issues will rise in importance on the global agenda, which is one of the main reasons I think Ericsson has a responsibility to take a leading role in ongoing discussions. Some of the work groups in which I am personally involved are the Broadband Commission for Digital Development, and the Leadership Council of the UN Sustainable Development Solutions Network, a multi- stakeholder initiative formed in 2012 promoting a solutions-oriented approach to the post-2015 development agenda. Tackling the challenges Technological developments are happening faster than ever and will always come with challenges. We are involved in debate and discussions in the areas most relevant for us. We constantly strive to improve energy efficiency in our portfolio.The many positive benefits of our technology includes fulfillment of human rights such as freedom of expression, but unintended use of technology can negatively impact those rights.Through multi-stakeholder dia- logue and collaboration, we look for ways to secure ICT’s positive benefits and minimize any negative impacts. In 2012, we worked on further integrating the UN Guiding Principles on Business and Human Rights into our business. Vision and value Sustainability and CR leadership offers significant value to our business. It offers vision: Bringing affordable and accessible communication to all reflects our 137-year history and unites our 110,000 employees. It demonstrates integrity and high ethics and helps earn stakeholder trust. It enables a positive contribution to the local economies where we operate, minimizes risks, offers a competitive advantage and saves costs, not least in reducing our environmental impact. It is difficult to predict all the ways our technology will be used in the future.Yet I am certain that as billions more begin to enjoy the benefits of connectivity, we will identify new opportunities to in- novate in ways that sustain our long-term business as well as help us leverage the benefits of ICT for all. Hans Vestberg President and CEO Ericsson letter FROM THE CEO ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 5
  • 6. sustainability strategy STRATEGIC, TARGET SETTING AND RISK MANAGEMENT CYCLEStrategic, target setting and risk management cycle The annual strategic, target setting and risk management cycle is part of Ericsson’s strategy process, which is well established within the Group and involves regions, business units and Group functions. Jan Feb Mar Apr JunJul Aug Sep Oct Nov Dec May Q4 Q1 Q2Q3 Group Management Strategy directives Quantitative and qualitative situation analysis Board Target Approval Review of one-year risks Target Setting Related risk identification and mitigation (12-month horizon) Region & Account Planning Board Strategy Approval Review of long-term risks Group Strategy Development (five-year perspective) Business unit & Group function strategy planning Strategic risk identification and mitigation Global Leadership Summit on Strategy Board quarterly risk monitoringNew Business Development Source: Ericsson At Ericsson, sustainability and CR is a strategic priority. We seek opportunities to leverage our influence as a leader in our sector to further sustainable develop- ment. Supported by our strategy (see box), we define sustainability as the suc- cessful integration of social, environmen- tal and economic issues in a triple bottom line context: • Social equity: Contributing to making communications affordable and accessible to all as a basic human need • Environmental performance: Demonstrating leadership and responsibility in addressing our direct and indirect environmental impacts, and in enabling a low carbon economy • Economic prosperity: Building on sustainable business models and alliances with stakeholders who share our commitment Corporate Responsibility is about main- taining the necessary controls to minimize risks to the business and the brand and about being a good corporate citizen. Integrating sustainability and CR The Sustainability and CR Strategy is fully integrated in the development of Ericsson’s business strategy, target setting and risk management (see illustration) and is actively implemented across the busi- ness. Continuous dialogue with external and internal stakeholders helps prioritize the issues most material for Ericsson. Execution of the Strategy is measured at 1 Lead in energy and environmental performance for telecom networks and services Advocate the role of broadband in sustainable urbanization and in shaping a low carbon economy Drive the socio-economic value proposition of broadband and its role in shaping society Be the trusted partner among our stakeholders by managing corporate responsibility business risks Improve Ericsson’s own environmental performance Taking a strategic approach relevant levels according to target fulfill- ment. Our Sustainability Policy describes how Ericsson strives towards excellent sus- tainability performance, and the Ericsson Code of Conduct policy includes our commitment to the UN Global Compact ten principles in the areas of human rights, labor standards, environment and anti-corruption. Ericsson’s Code of Business Ethics summarizes the Group’s basic policies and directives governing its relationships internally, with its stakehold- ers, and with others. It also sets out how the Group works to achieve and maintain its high ethical standards. We focus on the sustainability and corporate responsibility issues most material to Ericsson, our sector and our stakeholders, and we report on our performance annually. Driving results The Ericsson Sustainability and CR Steering Group, comprised of senior executives, aligns sustainability and CR work within Ericsson and approves the strategy, objectives and targets. Annual targets and long-term objectives support our commitment. Each year, we report on a range of objectives and achievements within our most material issues (see pages 48-50). 2 3 4 5 Ericsson’s sustainability and cr strategy Source: Ericsson 6 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 7. Managing our key issues We prioritize sustainability and corporate responsibility issues in terms of their importance to our business, our stakeholders, society and the environment. These are determined through a continuous process of review, consultation, and assessment that takes its starting point in our sustainability strategy work, and includes a materiality process (page 10), stakeholder engagement (page 11), and the results of our Life-Cycle Assessment (LCA) process. In determining our key issues, Ericsson also considers relevant reporting guidelines such as the Global Reporting Initiative, industry commitments such as the UN Global Compact and international standards and guidelines, such as the UN Guid- ing Principles on Business and Human Rights, as well as the Millennium Development Goals. Through this process we have determined that our key material issues are: Accessibility and affordability of mobile communication Increased accessibility and affordability of mobile communication can contribute significantly to sustainable development by supporting economic growth, health, education, quality of life, and more. Despite over 6 billion mobile subscriptions worldwide, there is still work to be done to ensure more equitable digital, social and financial inclusion, particularly at the base of the pyramid (page 12). Energy and material performance By designing and manufacturing products and solutions with energy and materials efficiency and reduced energy consumption, we can reduce our own environmental footprint and that of our customers. We also place great emphasis on reducing the carbon footprint of our own internal op- erations. Other important focus areas are reducing energy consumption, phasing out hazardous substances and improving transparency of conflict minerals in our supply chain (page 20). Climate change and urbanization The ICT sector has significant potential to lead the transformation to a low-carbon economy by offering solutions to reduce the 98% of carbon emissions that come from other industries and sectors. We offer solutions for smart grids, remote work, intelligent transport and other innovative uses of ICT, and continue to raise awareness of this potential (page 28). Business ethics
 Good governance and business ethics are essential to responsible business and enhance investor and customer confidence. High environmental and social requirements apply to our global supply chain and we believe that it is important that our business is conducted with respect for universal human rights. Still, the Networked Society brings new ethical dilemmas in terms of ICT’s impact on issues like privacy and freedom of expression (page 34). Employee engagement
 With an engaged and diverse workforce that emphasizes leadership, learning and values, we can better achieve our sustainability and CR aims, attract and retain talented people, respond to our customers’ needs and maintain a competitive advantage. Our vision is to build the best talent in the industry. High health and safety standards are also a top priority (page 42). managing our key issues ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 7
  • 8. our value chain Taking a value chain perspective Sustainability and CR issues are addressed throughout our business operations and within our sphere of influence, we consider both direct and indirect impacts. Further details are found through out this report. In a value chain perspective, we map the key focus areas as identified in our materiality process (see page 10) in each phase of our value chain. Through stakeholder engagement we aim to leverage our influence and enhance value creation. SUPPLY CHAIN Own operations Key focus areas ›› Responsible sourcing ›› Phase out hazardous substances ›› Trace conflict minerals ›› Reduce energy and CO2 e emissions Key focus areas ›› Reducing energy and CO2 e emissions ›› Diversity ›› Ethical business ›› Occupational health and safety Engagement ›› Energy efficiency forum ›› Joint Audit Committee of a number of customers ›› Standardization bodies on materials use, e.g., IEC* ›› EICC/GeSI* Conflict Minerals Working Group Engagement ›› Solutions for green-certified buildings/renewable energy ›› Diversity initiatives. ›› Raised employee awareness of sustainability and CR ›› Integration of ethical business practices Impact and value ›› CoC* performance improved by 50% ›› Improved dialogue on energy use and CO2 e ›› Increased transparency of conflict minerals ›› Driving higher materials standards ›› Lower reputational risks for Ericsson and stakeholders Impact and value ›› Greater use of renewable energy in own facilities ›› Support market demand for renewable energy ›› More opportunities for women in ICT ›› Greater trust in Ericsson’s ethical business practices ›› Improved workplace safety culture Keyfocus areas Engagement Keyfocus areas Engagement Impact and value Impact and value Ericsson value chain, Sustainability and CR Perspective 8 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 9. our value chain End of life treatment Key focus areas ›› Carbon footprint & climate change ›› Energy and materials performance ›› Role of ICT in low-carbon economy ›› Human rights (unintended use of products) ›› ICT socio-economic impact ›› Radio waves and health Key focus areas ›› Design for disassembly (low environmental impact) ›› Proper handling of e-waste* ›› Phase out of hazardous substances Engagement ›› Optimize energy-efficient networks with operators ›› Solutions on wider societal challenges ›› Roll out Technology for Good programs* ›› Dialogue and guidelines on responsible use of ICT ›› Research on radio waves and health Engagement ›› Promote proper e-waste handling with UN StEP* initiative ›› Raise standards among recyclers ›› Encourage greater uptake of proper e-waste handling ›› Partner to improve proper e-waste handling in markets where lacking Impact and value ›› Energy-efficient and low energy-consuming networks ›› Reduce negative environmental impact ›› ICT-enabled solutions to reduce carbon emissions ›› Reduced risk for unintended use of products ›› Greater knowledge on impact of radio waves and health ›› Greater digital and social inclusion Impact and value ›› Improved e-waste handling ›› Harmonized global approach to e-waste handling ›› Strengthened requirements for recyclers ›› Safer handling of e-waste for workers/environment Definitions CoC = Code of Conduct IEC = International Electrotechnical Commission EICC = Electronic Industry Citizenship Coalition GeSI = Global e-Sustainability Initiative EC = European Commission Human Rights Sector Guidance Project/ICT industry Technology for Good Programs = e.g., ConnectTo Learn, Ericsson Response, Refugees United E-waste = Electrical and electronic waste UN StEP = UN Solving the E-Waste Problem initiative Products in use Keyfocus areas Engagement Keyfocus areas Engagement Impact and value Impact and value ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 9
  • 10. materiality 1 2 3 4 5 Anti-corruption Disaster response CR risks assessment Whistle-blower procedure Human rights (Unintended use of ICT) Throughthematerialitylens MATERIALITY 26 13 8 2 3154 16 7 14 30 32 20 17 6 12 23 9 19 29 31 11 2210 25 34 28 21 24 15 18 33 35 27 Materiality Assess and engage Actively address and engage Assess Address Engage when appropriate Conducting business responsibly Enabling communication for all Leading with values Reducing our environmental impact Enabling Low-Carbon economy Impact to Ericsson HIGHLOW InteresttostakeholdersHIGH Source: Ericsson Materiality is the point at which a topic becomes relevant both in the context of stakeholders’ interest and Ericsson’s strategic priorities. The materiality map below is the result of a five-step process in which Ericsson ranked an issue based on the degree of interest to stakeholders and the impact to Ericsson’s business to show where these issues align. This allows us to identify priori- ties and align strategy and reporting with emerging stakeholder expectations. We first created a universe of topics based on investor surveys and dialogue, customer requirements, employee priorities, research, and trendmapping and grouped the topics according to our key issues (see page 7). Next, the topics were weighted from two perspectives: impact to Ericsson’s business (based on risk assessments, our Life-Cycle Assessments, the Sustainability Strategy process, Supplier Code of Conduct program, and re- sults of internal and external audits of our management system) and interest from our stakeholders (using a wide variety of in- puts). Finally, internal sustainability experts analyzed the outcome of the process, making adjustments based on their understand- ing of stakeholder priorities and insight into the business. This is the first time Ericsson applied this materiality process. It will be conducted periodically and further refined to create a method that best reflects the issues most relevant to Ericsson, provides deeper insights into stakeholder expectations, and allows materiality to be comparable over time. Explanation to the table: Assess: review and determine the importance of a topic Address: direct efforts and attention to work with the topic Engage: with stakeholders to address a topic The materiality of the topic determines how it is covered in our annual sustainability and CR reporting. The most material topics are covered in this report or online. 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Biodiversity Emissions (effluents, air emissions other than GHG) Environmental legal compliance Waste management (office and production) Water consumption Ericsson carbon footprint and climate change Product energy efficiency Responsible land use Use of renewable energy Hazardous substances avoidance Efficient use of materials (excluding hazardous) ICT contribution to low-carbon economy ICT socio-economic impact Product information and labeling Energy consumption (Ericsson own activities) 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Cybersecurity Radio waves and public health Child labor Information security and privacy Forced labor Freedom of association Policy engagement and advocacy Responsible sourcing Access to education Digital inclusion Tracing of conflict minerals Diversity and non-discrimination Occupational health and safety Employee engagement Electrical and electronic waste management Source: Ericsson 10 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 11. stakeholder engagements engaging with stakeholders Addressing sustainability and corporate responsibility issues in an effective way requires engagement with a wide range of stakeholders, including customers, employees, investors, suppliers, industry partners, government, consumer and business users of telecommunications services, non-governmental organiza- tions, standardization bodies, research institutes, and media. Through collabora- tion we seek to understand their views and incorporate their feedback into our ways of working, so that we can arrive at better solutions to address challenges. To understand how stakeholders perceive us on sustainability and CR issues, we conduct surveys with employees, customers and investors. We also put effort into responding to surveys of others, including investors, NGOs and customers, and pay close attention to improving our rankings. We engage with customers regularly on many issues, including supply chain management, energy efficiency, and our Technology for Good programs. Here we present a snapshot of some key stakeholder engagement activities during 2012. For more examples, visit www.ericsson.com/sustainability. Sustainability and CR briefings for investors Increasingly mainstream, as well as Socially Responsible Investors seek increased insights into how companies manage sustainability and corporate responsibility, particularly in regard to long- and short-term risks affecting the business. Ericsson meets with investors regularly, and provides information on our strategy and approach, risk management, anti-corruption program, handling of human rights and sales compliance 50 40 30 10 20 0 Technology for Good Health and safety and Code of Conduct Renewable energy Human rights Employees rank top sustainability issues 2012 Percent 4748 44 39 41 50 40 30 10 20 0 Technology for Good Health and safety and Code of Conduct Renewable energy Human rights Enabling low-carbon economy Source: Ericsson Employees rank top sustainability issues 2012 Percent 4748 44 39 41 Employees rank top sustainability issues
2012 Each year we conduct a detailed employee survey to assess employees’ views on the sustainability issues they consider the most relevant for Ericsson to focus on. A total of 3,633 employees participated in 2012. (See graph for results in percent). Shift listens to stake- holders on human rights • Strengthening the police or military’s control over villages • Crony and/or corrupt subcontractors • Land-grabbing associated with ICT network coverage • Forced labor associated with public infrastructure • Lack of grievance channels • Security crackdown on public protests • Privacy crackdowns linked to the internet • Increased corruption and discrimination around access to ICT processes, among other issues. We answer many investor surveys and strive to report in a thorough and transparent manner. Supplier forum on carbon emissions Ericsson held a forum with selected key suppliers to discuss energy efficiency and greenhouse gas emissions, since suppliers play an important role in helping Ericsson to reduce our indirect emissions.The fo- rum enabled sharing of best practices and focused on challenges related to reducing, measuring and reporting greenhouse gas emissions and established networks for knowledge sharing and joint initiatives. Channeling social media The increasing importance of the role of social media in sustainable development discussions was evident at two events in which Ericsson was a key partner: Rio+Social, held in conjunction with the UN Sustainable Development Conference (Rio+20), and the Social Good Summit, in conjunction with the UN General As- sembly annual meeting in NewYork. Both offered platforms to engage a wide audi- ence on global challenges. Other partners included Mashable, the UN Foundation, the 92nd StreetY, the UN Development Programme, and the Bill and Melinda Gates Foundation. For more, visit www.ericsson.com/sustainability. Listen to bloggers at the Social Good Summit talk about technology as a force for good. Ericsson has engaged in a Business Learning Program on Human Rights with the non-profit centre Shift (see pages 36, 38). As part of its independent research, Shift undertook a recent trip to Myanmar where it conducted approximately 100 interviews and identified a number of concerns among communities and ethnic groups related to companies entering Myanmar. A number of these were specific to the ICT industry. Discussions with these local stakeholders will be an impor- tant part of Ericsson’s own human rights due diligence both before and during its business operations in Myanmar. Ericsson will carefully consider these and other risks to human rights: Read more at www.shiftproject.org Source: Ericsson ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 11
  • 12. From increasing GDP growth and boosting livelihoods to enhancing access to education and health, ICT is a powerful way to unlock the full economic potential of developing nations. Our strategy is to drive the socio-economic value of mobile broadband to shape a world where everyone can benefit from the Networked Society. Together with partners, we drive initiatives and innovative solutions that address our most pressing global challenges, in line with the Millennium Development Goals. enabling communications for all enabling COMMUNICATIONs FORALL 12 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 13. enabling communications for all Broadband penetration has been proven to have a significant effect on economic development. Every 10% increase in broad- band penetration is shown on average to deliver a GDP growth of 1%. Furthermore, 80 jobs are created for every 1000 broadband connections. Doubling the broadband speed increases GDP by 0.3%, according to a study of 33 OECD countries conducted by Ericsson, Arthur D. Little and Chalmers University. The potential is evident, and billions have benefited from the con- tinued growth of the industry. The challenge is to unlock it for the benefit of the “last billion” users at the base of the pyramid. While broadband is getting more affordable, and one-third of the world can now get online, many are not part of the digital age, according to the State of Broadband 2012: Achieving Digital Inclusion for All, a report from the Broadband Commission for Digital Development to which Ericsson contributed. Currently 20% of households in developing countries have Internet access, a figure the Broadband Commission wants to double by 2015. Connecting the last billion Listen to Dr. Hamadoun Touré, Secretary General of the ITU talk about the state of broadband. A collaborative approach For many years, Ericsson has committed to support the achieve- ment of the Millennium Development Goals (MDGs) by promoting affordable access to telecoms. Ericsson’s approach of enabling communications is built on these pillars: • Initiatives linked to our core business • Public-private partnerships for higher quality, relevance, reach and outcome • Customer engagement to leverage shared value • Sustainable, scalable business models for long-term impact • Measuring and monitoring impact One of the first examples where Ericsson put this approach into action was as lead telecom partner in the Millennium Villages Project, together with the Earth Institute at Columbia University and Millennium Promise, where we wanted to show that connec- tivity could play a decisive role in fighting poverty in Africa. Today, more than half a million people in eleven countries in sub-Saharan Africa are benefiting from mobile connectivity through the project, improving access to health and education and boosting livelihoods, among other benefits. …by making education available to everyone… Communications for all We believe that connectivity is a starting point for economic growth and improved quality of life. Connectivity is improving livelihoods… …by fostering peace and reconnecting families… …and by supporting disaster-relief efforts. To date Connect To Learn has brought 21st-century education to 33 schools around the world …by bridging the digital divide… For every 10% increase in broadband penetration, GDP increases by one percentage point Source: Ericsson and Arthur D. Little, 2010-2011 185,000 people have registered on the Refugees United mobile platform There are 43 million refugees worldwide Source: Refugees United and UNHCR Ericsson Response volunteers have assisted in more than 40 relief efforts in 30 countries over the past 12 years About 2.5 billion people worldwide are unbanked – yet 1.7 billion of them have mobile phones with the potential to access m-commerce services Source: World Bank Source: Ericsson ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 13
  • 14. enabling communications for all The world as the classroom About 70% of girls in some sub-Saharan countries never get a secondary educa- tion. Education is a powerful tool to end poverty and secure a productive life. According to UNESCO, one extra year of schooling increases an individual’s earn- ings by up to 10%. For young people in Africa and other developing regions, ICT can have a transformational role in scaling up access to quality education through innovative programs, such as cloud- based curricula and school-to-school connectivity. Three-fold mission In response to the challenges of access and inequality in secondary education, and in support of UNESCO’s Education for All goals, Connect To Learn was launched in 2010 by Ericsson, Columbia University’s Earth Institute and Millennium Promise. Connect To Learn is aimed at enhancing education in the Millennium Villages of sub-Saharan Africa and has a three-fold mission to provide: • Quality learning and teaching resources through mobile broadband connectivity • Improved access to secondary education by providing scholarships and other support to girls • A global advocacy platform for the importance of quality education While the Millennium Development Goals have been focused on primary education, and have made considerable progress to date, Ericsson and partners identified a gap in secondary education. According to UNESCO, 200 million young people lack basic literacy and numeracy skills essential to learning further skills for work. As well as addressing these basic skills gaps, ICT also provides access to CONNECT TO LEARN 10,000 15,000 5,000 0 Connect To Learn Number of students 2,876 5,210 9,237 16,034 H2 2011 H1 2011 H1 2012 H2 2012 Source: Ericsson Connect To Learn is opening the door to a new world of knowledge and possibility. Listen to Connect to Learn scholar Kusi Hagar of Ghana. 21st century skills necessary for the knowledge society. As of 2012, ConnectTo Learn’s ICT program was established in twelve schools in Millennium Villages in six countries: Ghana, Tanzania, Kenya, Uganda, Malawi and Senegal, and during 2013 Ericsson will continue to expand ConnectTo Learn’s ICT program in the Millennium Villages. Extending the reach Building on the success of Connect To Learn in Africa, new ICT programs were started in schools in Djibouti, Brazil, Chile, South Sudan, Uganda, India and China. Ericsson is working with the gov- ernment of Guandong and China Mobile to bring cloud computing-based learning to schools in that region. As of the end of 2012, over 15,000 students globally were benefitting from Ericsson’s ICT programs, more than three times the number in 2011. Collaborative action A collaborative action research study together with the Earth Institute is look- ing at developing an intervention model to overcome challenges and barriers in implementing ICT programs in schools in resource-poor settings. The findings, available in 2013, will be used as input to future development of the program. See also www.connecttolearn.org. Source: Ericsson 14 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 15. enabling communications for all For refugees, a chance at reconnection Ericsson has supported humanitarian situations actively since 2000, but first became involved in the refugee issue in 2007, when we assisted the United Nations High Commissioner for Refugees (UNHCR) in providing connectivity to two refugee settlements in northern Uganda. Globally, UNHCR estimates that there are more than 43 million people forcibly displaced by conflict or persecution. UNHCR is actively seeking solutions for these underserved populations, who could benefit significantly from greater access to communications. In 2010, Ericsson representatives met David and Christopher Mikkelsen, founders of Refugees United, who had developed an online family reconnection service to help refugees locate loved ones separated by war, conflict, famine or natural disasters. However, at that time, less than 2% of their target population had access to computers and Internet, while some 40% had access to mobile phones. Ericsson assisted Refugees United with the development and deployment of a mobile phone application to further support reconnections. The service includes a SMS message and WAP version to suit low-bandwidth phones and needs of the users, and specifically adapted mobile applications for the search service, taking into account illiteracy, privacy, low bandwidth, cost, language and trust. Registrations tripled in 2012 The number of refugees registered for the service more than tripled in 2012, and marked 185,000 registrations by the start of 2013. With the urgent need for more outreach, the long-term objective is for 1 million refugees to actively use the service by 2015. Thanks to extensive awareness raising activities, new methods of community outreach, and the support of mobile operators (including Safaricom in Kenya, MTN in Uganda and Vodafone in Egypt), about 100 families have been reconnected. According to Refugees United the number may be higher; since the service is REFUGEES UNITED 150,000 200,000 100,000 50,000 0 Refugees United Number of refugees registered 6,100 152,420 90,475 65,000 174,652 183,292 20112010 2012 Q2 2012 Q1 2012 Q3 2012 Q4 Source: Refugees United Erika, 30, is looking for Cecilia. Erika is from Ogujebe. After five years these two sisters were united with the help of a borrowed phone and an online database. Ben Mori, 30 is looking for David. Ben came from South Sudan in 1991. 185,000refugees were registered on the Refugees United platform at the start of 2013. A long-term objective is 1 million by 2015. Listen to Christopher Mikkelsen of Refugees United talk about the aim to reach 1 million refugees. anonymous, and not every refugee who makes a reconnection wants to be reported. Part of the reason for the increased momentum in 2012 was the launch of the first radio campaign in one of the world’s largest refugee settlements in Dadaab, Kenya. In partnership with MTN Uganda and the UNHCR, Refugees United sent out its first SMS campaign, specifically targeting refugees in the southern and northern parts of Uganda with information about the service. Many families were reconnected as a result. In Kampala and Nairobi, information about the mobile app is provided at registration booths run by UNHCR personnel. We are aiming to deploy the service in many more countries in 2013. For more, visit www.refunite.org. Listen to Refugee United volunteer Bahati’s story of how he helped two sisters reconnect. Source: Refugees United ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 15
  • 16. enabling communications for all Amazon gets good signals Connectivity is bringing positive social and economic changes to the people of the remote Belterra region in the Brazilian Amazon, where over 30,000 people in some 175 communities along the Tapajós River now benefit from mobile broadband for the first time. The digital inclusion program began in 2009 as a partner- ship between Ericsson, mobile operator Telefonica|Vivo, and the non-profit organization Saude & Alegria. Ripple effect By 2010, changes precipitated by the connectivity services were already apparent. Most significantly, the region’s Abaré floating hospital boat was 3G enabled, allowing patients to get second opinions and collaborative diagnoses from outside medical specialists. Recognizing the positive benefits of the Abaré boat, local governments have also initiated a program to launch 100 additional river hospital boats, and a third of these boats are funded and scheduled for operation. Today the Abaré boat is not only a travelling health resource but also serves as a floating teaching hospital. Livelihoods got a boost as well, for example, a family bread-and- honey business was able to receive crucial pre-orders via mobile phone before making long-distance trips to the market to sell their goods. In 2011 the partners expanded the 3G coverage to an extremely remote community, with an off-grid site in Sururacá village, situated on the other side of the Tapajos river, within a nature reserve of the Amazonia National Park. By 2012, the new computers and Internet access allowed students at João Franco Sarmento school to benefit from virtual classes given by volunteers, including Ericsson employees, and to connect remotely with other students in Rio. In a 2012 survey, the majority of respondents from Belterra noted increased entrepreneurial activity and job creation as a result of telephony services; 90% of respondents said they believed the new services have had a positive role in regional development. Listen to school director Raimunda Bentes Martinho of the Suruacá Community in the Amazon talk about connecting her classroom for the first time. The 3G enabled hospital boat makes it possible for villagers in the Amazon to consult with outside specialists. It is also a floating teaching hospital. Telefonica|Vivo and Ericsson accept the 2013 Global Mobile Award for Best Mobile Product, Initiative or Service for Emerging Markets. The Amazon, one of the most bio-diverse areas on the planet, is a vast region that spans across eight rapidly developing countries with a population of more than 25 million people. For the inhabitants of Belterra, mobile broadband has had significant impact on daily life. 16 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 17. enabling communications for all Powering peace Conflict and lack of peace present sig- nificant barriers to development for many people around the world and can have a particularly devastating impact on the future of young people. Together with the PeaceEarth Foundation led by UNESCO Goodwill Ambassador Forest Whitaker, Ericsson is exploring the role of ICT and mobile broadband to create conditions to foster peace among youth, many of whom are victims of conflict. U.S. inner city neighborhoods. Ericsson serves as technology partner with Peace Earth and UNESCO, in order to deploy ICT technology and education solutions to Peace Earth projects and in doing so accelerate the peace-making process. Using technology for peace As part of the three-year program, Peace Earth students will study and learn con- flict resolution and peace promotion, and spread it outward in their communities as part of theYouth Peacemaker Network. An initial commitment from Ericsson to Peace Earth is delivery of Internet access via mobile broadband, computers, and ICT training to 60 troubled youth in two locations – Hope North, in Uganda, a school dedicated to the young victims of Uganda’s civil war, and also in Juba, South Sudan. For these young people, Listen to PeaceEarth Foundation founder, actor Forest Whitaker, Hope North founder Sam Okello and Ugandan youth talk about ICT’s role in peace. Hope North is dedicated to healing the young victims of Uganda’s civil war, including orphans and former child soldiers. Now ICT is one of the tools to empower them to become voices for peace and development. connectivity is basic but vital, providing the fundamentals on how to send email and to access and use social networks responsibly. After the first deployments, the importance of ICT skill building and collaboration became an even more integral part of the overall peace-building curricula. Community Peace Building Access to the Internet’s knowledge bases and resources is fostering active col- laboration between participating youth and plays an important role in their community peace building, by enabling them to collaborate with each other and their communities. The non-profit PeaceEarth Foundation was formed to promote peace amongst troubled youth everywhere, from rural African conflict areas to troubled urban ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 17
  • 18. enabling communications for all Banking the unbanked Worldwide, there are some estimated 2.5 billion people who are unbanked – and yet 1.7 billion of them have mobile phones. Mobile commerce (m-commerce) enables the handling of financial tasks directly from a mobile phone, such as paying bills, replen- ishing mobile phone prepaid (top up) accounts, remittances or person-to-person money transfers, and conducting business transactions. Mobile financial services also contribute substan- tially to economic and social inclusion in societies. Empowered consumers in Africa In 2012, Ericsson’s ConsumerLab studied Ghana, Tanzania, and South Africa and found that consumers rely on m-commerce to improve quality of life, security and convenience. The study also examines how men and women maintain different roles in the household economy, with women often responsible for both the household economy and family savings, as well as playing key roles in the ever-increasing numbers of small businesses started by extended families. Consumers have new levels of empowerment in creating accounts, which in turn is spurring local economic activity. While Ericsson will continue to expand access to services across Africa, Asia, the Middle East, and Latin America, we will also look for opportunities to provide the benefits of bank services to the estimated 60 million unbanked consumers in the United States. Creating the right platform M-commerce has seen great success in different countries, primarily in Africa and Asia. One of the greatest challenges to mobile money has been cross-border financial transfers. Ericsson’s Wallet Platform integrates a number of financial services and is a natural progression of Ericsson’s expertise and long experience in real-time transactions with billing and payment solutions. Ericsson’s aim is to mobilize a wide range of small financial transactions, such as small person-to-person payments, to make them significantly more affordable and accessible for everyone in the transaction value chain. Huge numbers of tiny transac- tions such as top-ups, phone calls, SMS, tweets, shares, etc, are already made possible through mobile communications, making m-commerce the natural next step in the evolution of services. Our global presence and reach will help make such services available across existing financial eco-systems. In 2012 Ericsson announced a strategic alliance with Western Union, where the Ericsson Wallet Platform was certified by Western Union’s Mobile Money Transfer Network. This will aid mobile operators in offering consumers a robust package of m-wallet options for money exchanges. Ericsson is working on a common standard for transferring m-wallet funds between countries, much like the SMS standard that allows texting to work globally. Ericsson’s Interconnect service is a step in that direction, allowing a mobile phone user in one country to instantly and safely send money to a receiver in another country. Listen to Ericsson on m-commerce’s potential to open up the economy for the unbanked. A baker uses the mobile for commerce. 18 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 19. enabling communications for all In South Sudan, some 350 aid organiza- tions are struggling to respond to the desperate humanitarian crisis caused by ongoing conflict that has left half of the country’s 9.7 million people without enough to eat, according to Oxfam. Being able to coordinate efforts is essential. Ericsson Response, the company’s flagship corporate responsibility and em- ployee volunteer program, helped them do that in 2012. Ericsson worked with Emergency Telecommunications Cluster (ETC) partners – World Food Programme (WFP) and emergency.lu to provide vital communications services to relief work- ers in South Sudan using Ericsson Wi-Fi technology. The combined ETC response solu- tion from WFP, Ericsson Response and ericsson response™ First responders rely on ICT Mobile communications are increasingly important to quickly and efficiently save lives and protect property. Emergency services receive many calls each day and lives often depend on the 4G/LTE tech- nology that will be the backbone of the national public safety broadband network. Large-scale planning and coordination, and accurate, timely information sharing helps get personnel and resources to the right place quickly. Systems that handle these challenges must be scalable and flexible to provide the same level of com- mand, control and communication during large-scale emergencies, such as natural disasters in an urban area, as to an every- day car accident. As an example of how mobile com- munications can improve emergency response, Ericsson and their alliance partner Motorola are ready to deliver 4G/ LTE technology systems that are scalable and configurable solutions. These range from telecom operators offerings where no dedicated public safety spectrum is available (e.g., Europe), to a dedicated national public safety mobile broadband network as in the U.S. These networks will allow emergency personnel and first responders to access rapid downloads and uploads of information and video to be shared at the incident scene, across the mobile data network and interconnected with new and existing public safety and government data network systems. The high-speed LTE network means first responders can use several different ser- vices to make their work safer, including the ability to send video to the central of- fice so personnel there can better support responders at the scene. First responders gain new multimedia tools that aid their mission to serve and protect. emergency.lu provides free, reliable, high- speed Internet connectivity that allows the humanitarian community to perform its life-saving work in remote areas more efficiently. Source of motivation The initiative in South Sudan is just one of many missions being carried out by Ericsson Response, which for more than 12 years has provided essential mobile communications to support disaster relief and humanitarian aid. This non-profit activity engages Ericsson employees in volunteer work with no commercial objec- tive and is a key component of Ericsson’s corporate responsibility activities. Not only is it inspiring those who participate but is a source of motivation, empowerment and value creation for all Ericsson employees. Active around the world In 2012, Ericsson Response assisted UN partners and other aid organizations in many places around the world. Volunteers went to Haiti to share ICT knowledge and for on-the-job training as UNICEF ICT officers. Ericsson volunteers helped with deployment and maintenance of commu- nications technology for partners in Mali and in Tanzania (where servers were dam- aged in flooding in 2012). Another volun- teer served as a technical instructor at a mission in Uganda with UNICEF. Other volunteers provided technical support to the OneUN project, aimed at developing a unified collaboration platform for multiple UN agencies to enhance their communi- cation on the ground. Faster communication In 2012, after the UN requested that Ericsson Response supply a network that offered additional functionality, Ericsson developed a new container for mobile communication and multiple-access tech- nologies which will significantly improve communication in disaster zones. The new container is based on the latest tech- nology for radio-access networks with the ability to include all three standards in the future: GSM/EDGE, WCDMA/HSPA, and LTE. As part of its longer-term strategy, Ericsson Response has established an Ericsson Response Logistics and Training Center in Linköping, Sweden. Listen to aid humanitarian workers talk about the role of Ericsson Response in humanitarian crisis in South Sudan. Currently, more than 130 volunteers from about 30 countries are involved in Ericsson Response, and meet regularly to update their disaster preparedness training. ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 19
  • 20. Reducing our environmental impact Reducing our environmental impact We demonstrate leadership in the energy and environmental performance of telecom networks and services to minimize our carbon footprint and environmental impacts. Our Life-Cycle Assessment approach shows that our greatest environmental impact is from when our products are in use, so our strategy is to provide energy-efficient and low energy-consuming products and solutions. We also focus on reducing the carbon footprint of our own activities and tracking other environmental impacts such as emissions to air, waste and water. 20 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 21. Reducing our environmental impact ERICSSON LIFE-CYCLE ASSESSMENT CARBON FOOTPRINT 2012 (Mtonnes CO2 e) Supply chain Activities in 2012 Ericsson life-cycle assessment – carbon footprint 2012 Mtonnes CO2e 25 30 20 15 10 5 0 –5 ~3 ~–0.3 ~26 ~4 0.9 Supply chain Ericsson own activities Activities in 2012 Operator activities Products in operation End-of-life treatment Future (lifetime) operation of products delivered in 2012 Ericsson life-cycle assessment – carbon footprint 2012 Mtonnes CO2e 25 30 20 15 10 5 0 –5 ~3 ~–0.3 ~26 ~4 0.9 Source: Ericsson Supply chain Ericsson own activities Activities in 2012 Operator activities Products in operation End-of-life treatment Future (lifetime) operation of products delivered in 2012 Ericsson life-cycle assessment – carbon footprint 2012 Mtonnes CO2e 25 30 20 15 10 5 0 –5 ~3 ~–0.3 ~26 ~4 0.9 Source: Ericsson CARBON FOOTPRINT – INTENSITY TARGET (Percent) Ericsson own activities Products in operation Carbon footprint intensity target Percent 100 80 60 40 20 0 TARGET−40% TARGET–40% RESULT2012−16% RESULT2012−22% 2008 2009 2010 2011 2012 2013 Source: Ericsson Ericsson takes a full life-cycle approach, through raw material extraction, manufacture, transport, use, disassembly and end-of-life with particular focus on energy efficiency, materials management and product take-back. Life-Cycle Assessments (LCA) confirm that energy use of products in operation remains our most significant environmental impact. We also work actively to reduce the environmental impact of our own activities, focus our efforts in two distinct areas: • Improving environmental performance of Ericsson’s own activities • Optimizing energy and environmental performance for telecom networks and services Our carbon footprint for 2012 can be seen in the graph below. A five-year target which aims to reduce the Ericsson carbon footprint intensity by 40% was set in 2009 (with a 2008 baseline). The target comprises two focus areas: Ericsson’s own activities and the life-cycle impacts of products in operation (see graph, Carbon footprint intensity target). In 2012, Ericsson exceeded the annual 10% reduction target, and as a result, the target has been achieved in four years instead of five, with the following results: • A 22% reduction in direct emission intensity from Ericsson’s own activities was achieved during 2012, including facilities’ energy use, product transportation and business travel. This was achieved by: – Reducing absolute emissions from business travel by 16% – Reducing absolute emissions from product transportation by 12% – Decreasing facility energy consumption by approximately 3%, while related emissions increased by 13% • A 16% reduction in indirect emission intensity from life-cycle impacts of products in operation was achieved in 2012. This is due to a combination of improved product energy efficiency and the mix of products sold. Life-cycle approach identifies priorities The carbon footprint of an average ICT user is estimated to decrease 20% between 2007 and 2020… …so we are designing products and solutions to make this happen… We are reducing our environmental impact throughout our value chain. Ericsson’s Psi Ψ 3G coverage solution reduces power consumption by up to 40% The Antenna-Integrated Radio (AIR) cuts energy consumption by 40% By 2017, 85% of the world’s population will have access to mobile-broadband coverage via 3G networks Ericsson increased its video conference rooms globally by 60% in 2012, contributing to the reduction of CO2e emissions per employee 34% of our global facilities use certified green electricity and 74% at measured European facilities …and reducing carbon emissions in our own operations. reducing our environmental impact In Sweden, we have used 100% certified green electricity since 2008 …finding smarter ways of working… Source: Ericsson ˜ = Approximately Source: Ericsson Source: Ericsson ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 21
  • 22. Reducing our environmental impact Helping customers meet energy challenges Enabling our customers to solve their energy efficiency challenges is a priority for Ericsson. Our goal is to lead our industry in developing innovative network products and solutions that help operators curb rising energy costs, reduce energy consumption and lower their carbon footprint. When more means less In most parts of the world, for our customers, increasing energy efficiency and decreasing energy consumption are on top of their minds. The challenge is often compounded in emerging markets, by unreliable energy supply and a dependency on off-grid diesel fuel that is expensive, subject to theft, and environmentally costly. Ericsson’s aim is to help deliver high-quality performance in an environmentally responsible way while keeping operational ex- penditures down. Our fixed and mobile networks are designed for energy efficiency, increased lifespan and fewer maintenance and site visits. In a typical radio access network, up to 90% of energy is consumed in radio base stations. For more than a decade, Ericsson has increased 3G energy efficiency by 85% in radio base stations, allowing networks to meet bandwidth demands without increasing energy consumption per subscriber. As radio sites become more energy-efficient and the cost of solar panels decreases, renewable power supply solutions such as solar and wind are becoming an increasingly cost-efficient and environmentally attractive option, particularly for providing cover- age in off-grid areas. Hub of excellence Over many years, Ericsson has collaborated with customers to address challenges and determine the optimal combination of hardware, software, custom engineering and other related ser- vices that will bring down energy costs while creating the most value for the operator. This has included looking at network and site energy-efficient solutions or fuel, electricity, and alternative energy sourcing. It also means evaluating energy consumption, logistics and battery management. Energy infrastructure is also constantly assessed as part of operation and maintenance. During 2012 we formed a Global Energy Consulting Hub to help customers address these challenges. The Hub consists of a cross-functional team offering end-to-end energy manage- ment for our customers, including operations assurance, energy optimization, supply and consumption management, along with energy solution design and deployment. This helps operators combine substantial cuts in energy-related OPEX with improve- ments in network availability, quality and energy consumption. The Hub is primarily focused on innovation in two areas: energy- efficient network equipment – where optimized network design reduces the amount of energy required by the equipment; and energy-efficient solutions for powering the network equipment, e.g. energy-efficient rectifiers, batteries, generators, and alterna- tive sources of energy such as solar, and wind. The combined ef- fect is major cost savings as well as lower environmental impact. 22 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 23. Reducing our environmental impact RBS6000 FAMILY Scaling energy-smart products Close to 100% of our radio base station deliveries now comprise the RBS 6000 family. Launched in 2011, the Antenna- Integrated Radio (AIR) is part of this suite and is based on a unique design that integrates the radio unit with the antenna, cutting energy consumption by 40% through reduced feeder loss and simpli- fied cooling. Featured at the 2012 Broadband World Forum, Ericsson’s energy-aware optical transport is the first adaptive power man- agement technology for optical transport. The Energy Aware Smart Packet Optical (SPO) 1400 demonstration showed how power management modes can be ap- plied using traffic load measurement and prediction with lower power consumption. Traditionally, telecom equipment always runs at full throttle, even when traffic levels vary over the course of the day or week. In the demonstration the prototype modulated energy consumption based on actual use while maintaining network performance based on the bandwidth re- quired.
This dynamic power management results in measurable energy savings. For example, a small, regional network might require a minimum of 100 SPO nodes. Using energy-efficient dynamic nodes could potentially reduce yearly energy costs by EURO 300,000 and results in carbon dioxide emission reductions equivalent to removing 7,000 cars from the road. Leading energy innovation Our approach to energy efficiency is about finding core portfolio offerings that can scale. One of the challenges that operators face is how to build out 3G coverage expansions in a cost-effective and efficient manner. Among the solutions we provide to address this are: The Ericsson Ψ (Psi) Coverage: a solution that provides mobile broad- band (3G) coverage. The name Ψ reflects the shape of the solution with just one standard base station radio connected to three antennas rather than the tradi- tional deployment of a single radio per antenna. It has been shown in the field to reduce power consumption by up to 40% compared to earlier installations with same coverage; this translates into a 240 W power saving per site or 550 liters of diesel saved annually. Ψ-Coverage was successfully launched in the field in August 2012. ECO Mode: Since 2011, the Ericsson MINI-LINK provides an ECO Mode solu- tion enabling up to 40% power consump- tion reduction for microwave communica- tion. Traditionally, the microwave radio unit consumes the same amount of power in- dependent of the used output power. With MINI-LINK ECO Mode, the radio units can effectively adjust power requirements according to the used output power in the POWER CONSUMPTION REDUCTION WITH ERICSSOn (Psi) coverage 800 600 400 200 0 3x1 Power consumption Psi Power consumption Power consumption reduction with Ericsson Psi (Watt) 17:00 21:00 03:00 07:00 11:00 15:00 Source: Ericsson The RBS 6000 family of radio base stations offers 80% lower energy consumption per subscriber and requires 75% less space compared to previous generations. In the field, over a 24-hour period, the solution shows an average power consumption reduction of 40%. radio interface, which varies according to the actual link conditions and output margin design. During 2012 further ECO Mode improvements were introduced, providing power consumption reduction even with maximum output power in the radio interface. Managed Rural Coverage: bundles a managed service with a cost-efficient solar powered 2G, 3G or LTE-mini-site solution including satelite transmission, designed to connect people in areas with- out voice- and data communication. Source: Ericsson ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 23
  • 24. Reducing our environmental impact Continuously improving sustainability performance is fundamen- tal to Ericsson’s strategy – and a chief priority is reducing the carbon intensity of our operations. In 2012, a number of measures were taken to reduce our direct carbon footprint and a long-term objective was set to reduce CO2 e per employee by 30% over five years. The Ericsson carbon footprint reduction goal is to keep absolute CO2 e level at 2011 levels by 2017, despite forecasted growth in sales and number of employees. Our approach is to reduce our carbon footprint while simultaneously improving pro- ductivity and achieving a cost-benefit balance. Our primary focus areas are facilities, product transport and business travel. Reducing our direct carbon impact CARBON INTENSITY – ERICSSON OWN ACTIVITIES 2 3 1 Facilities: Tonnes CO2 e/employee Transports: Tonnes CO2 e/tonne products Travel: Tonnes CO2 e/employee Carbon intensity − Ericsson own activities 2.4 1.8 2.8 2.4 1.6 1.5 2.2 2.5 2.2 1.81.8 1.8 2.6 2.3 1.4 2008 20122009 2010 2011 Source: Ericsson Green-certified buildings To stimulate the market for high environmental performance buildings, Ericsson seeks to have major facilities built according to green-rated building systems like LEED Gold (Leadership in Energy and Environmental Design), an internationally recognized green building program. In India, Ericsson facilities in Bangalore, Noida and Gurgaon and a new building in Kista, Sweden have been certified as LEED Gold. High environmental performance buildings carries many benefits including indoor environmental quality, improved energy and water efficiencies, and optimized use of materials and resources, and innovation and improved design process. Facilities management We exceeded our 2012 aim of reducing energy usage in our facilities by 3% per head, achieving a 3.6% decrease by: • Creating more efficient work environments through introduction of more flexible ways of working including ‘free seating’ (non-assigned workspaces) and greater usage of video conferencing (video conferencing increased by 60% during 2012). • Purchasing renewable or green energy certificates wherever practical. In Sweden, we have had 100% green-certified electricity since 2008. In 2012, total share of certified green electricity in our facilities measured and calculated was 34% globally, and 74% measured in Europe. CO2 e direct and indirect emissions 2012 2011 2010 2009 2008 Unit Total 355 260 204 a) 201 a) 224 a) ktonne Energy (S1) 30 32 30 26 28 ktonne Car fleet (S1) 62 b) - - - - ktonne Energy (S2) 263 228 174 175 196 ktonne 2012 2011 2010 2009 2008 Unit Total 29,512 31,045 23,863 20,788 35,269 tonne Recycling 13,500 16,300 11,100 9,521 23,870 tonne Energy 9,900 8,400 6,600 6,089 6,250 tonne Landfill 5,400 5,400 5,100 4,456 4,350 tonne Hazardous 712 945 1,063 722 799 tonne Production and office waste Notes to Environmental KPI graphs and tables in this chapter: Ericsson follows ISO 14040 and ISO 14044 standards when performing Life-Cycle Assessments. Mpkm: Million personal kilometer = Million distance traveled Mtonnekm: Million * tonne* kilometer = Million transport work a) Restated due to new measurements and corrections b) First time calculated S1, S2 and S3 mean Scope 1, Scope 2 and Scope 3 according to GhG protocol Source: Ericsson Energy consumption 2012 2011 2010 2009 2008 Unit Electricity 808 830 650 651 670 GWh District heating 56 60 93 95 100 GWh Other energy 121 130 100 97 100 GWh Our LCA approach shows that with the growth of our Managed Services business, the direct carbon emissions of our car fleet is increasing and therefore we are setting new environmental targets to address this impact in 2013. CO2 e Ericsson own activities 2012 2011 2010 2009 2008 Unit Total 909 881 a) 647 a) 562 a) 784 a) ktonne 24 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 25. Reducing our environmental impact Product transport Ericsson is strategically shifting from air to surface freight in product transport, and in 2012 80% of outbound freight went by surface, thereby exceeding our target to increase outbound surface freight to 75%. Requirements for transport suppliers were raised and customer order points are being moved closer to the regions. We are also working with logistics service providers to optimize consolidation of material and routes. BUSINESS TRAVEL – LONG-TERM OBJECTIVE 2 3 1 0 2.2 1.4 1 2000 2006 2012 2017 Business travel – long term objective Tonnes CO2 e/employee Source: Ericsson CO2 e indirect emissions Business travel Product transportation 2012 2011 2010 2009 2008 Unit Air transport 452 481 a) 346 226 525 Mtonnekm Road transport 372 360 a) 257 300 300 Mtonnekm Ship transport 338 99 a) 58 165 240 Mtonnekm 2012 2011 2010 2009 2008 Unit Total 554 621 a) 443 361 560 ktonne Travel (S3) 159 189 164 134 145 ktonne Transport (S3) 326 370 a) 229 180 370 ktonne Commuting (S3) 69 62 50 47 45 ktonne 2012 2011 2010 2009 2008 Unit Air travel 1,200 1,400 1,250 1,003 1,090 Mpkm Road travel 74 129 90 90 97 Mpkm Car fleet 339 b) - - - - Mpkm Commuting 415 375 300 295 280 Mpkm Business travel and commuting During 2012, Ericsson’s target was to reduce flight trips by 10% from a 2011 baseline. By year-end, these were down by 12%. As part of our sustainability strategy, Ericsson prioritizes devel- oping alternatives to travel to improve productivity and reduce carbon dioxide emissions. This includes deploying our own tech- nology and communication and collaboration tools and creating more modern and flexible work environments. For example, we have increased the number of video conferencing rooms by 60% during 2012. As noted above, we are also setting new environmental targets to address our car fleet, which is increasing in significance as Managed Services business grows. Use of videoconferencing tools is increasing rapidly at Ericsson. Ericsson’s long-term objectives is to reduce carbon emissions from business travel to 1 Tonne CO2 e per emplyee by 2017. Source: Ericsson In our test environment labs we created a baseline for energy usage and monitor PUE (Power Usage Effectiveness) for continuous improvement. Our plan from 2013 includes securing that our test environment labs and data center over the next few years will be more energy efficient in 2013. ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 25
  • 26. Reducing our environmental impact Understanding trends in ICT and carbon emissions Ericsson conducts extensive research on energy and carbon trends within the industry. Commonly agreed, our sector is estimated to account for around 2% of total CO2 e emissions. It also has signifi- cant potential to reduce the 98% of emissions that come from other indus- tries. Our research and own activities focus both on reducing the 2% and enabling a reduction of the other 98%. A recent study Ericsson conducted with telecom operator TeliaSonera on the future carbon footprint of the ICT and Entertainment & Media (E&M) sectors shows that the ICT sector´s own footprint is expected to not exceed 2% by 2020. Limiting the ICT footprint Expected growth in data traffic volumes, subscribers and number of devices are the main drivers behind ICT’s increased carbon footprint in absolute emissions, with PCs and servers in data centers as key contributors. However, our research shows that carbon footprint per average ICT user and per amount of data continues to decrease over time. ICT CARBON FOOTPRINT OUTLOOK CO2 e PER DATA OUTLOOKCO2 e PER SUBSCRIBER OUTLOOK 1200 1000 400 200 600 800 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Mobile networks and mobile devices (incl. tablets) PCs (all types, excl. tablets) Data centers, data transmission & enterprise networks Home devices (fixed phones, Customer Premises Equipment (CPE)) Fixed networks ICT carbon footprint outlook Mtonnes CO2 e Source: Ericsson 80 100 120 60 40 20 0 Mobile data Fixed data CO2e per data outlook (kg CO2 e/GB) 20201990 2000 2010 Source: Ericsson 300 400 200 100 0 Fixed data Average ICT user Mobile data CO2e per subscriber outlook (kg CO2 e/user) 20201990 2000 2010 Source: Ericsson Carbon footprint per average ICT user and per amount of data continues to decrease over time. Source: Ericsson Source: Ericsson Source: Ericsson 26 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 27. Reducing our environmental impact closing the loop Since 2005, Ericsson has offered free-of-charge product take- back to customers worldwide as part of its extended producer responsibility. Our end-of-life approach exceeds legislative requirements for recycling and we apply the EU Waste from Electrical and Electronic Equipment (WEEE) Directive globally. This helps minimize risks by ensuring proper handling and treatment of waste. Our key material streams are ferrous metals, precious metals and plastics. The majority of the metals re-enter the commodities market as raw materials, reducing depletion of non-renewable resource reserves and helping to abate global carbon dioxide emissions. Choosing recyclers carefully To handle and process WEEE, Ericsson utilizes a small number of carefully selected e-waste recyclers who provide global cover- age and economies of scale through subsidiaries and partners around the world. Due to the sensitivity and environmental risks associated with processing and handling e-waste, using a few proficient recyclers helps Ericsson achieve economies of scale and makes it easier to control proper handling. We audit our recyclers and their sub-suppliers at least annually on aspects like code of conduct and business ethics. Ericsson’s approved recycler for WEEE in India recently extended their facility in Chennai to include a chemical e-waste processing plant, becoming the first full e-waste processing facility in India. Until suitable conditions exist in all markets, Ericsson will con- tinue to ship waste to other sites where environmentally preferred recycling methods can be assured. Towards further improvement Ericsson cooperates with a number of global organizations focused on improving the handling of WEEE such as the UN StEP (Solving the E-waste Problem) and GeSI. Of all material collected and processed during 2012, less than 2% was sent to landfill and more than 98% was recovered. Between 2011 and 2012, the number of tonnes of take-back orders increased from 5,567 tonnes to 9,271 tonnes. As a result, the program reached its recovery target, exceeding the stipulated EU WEEE target of 75%. Our new take-back target for 2013 is to achieve 10% take-back vs. equipment put on market (PoM) – more than double the 2012 target. Our objective is to reach a level of 60% of PoM by 2016, primarily through increased customer awareness and better integration of decommissioning services with the Ericsson take-back process. The carbon footprint per average ICT user over fixed and mobile systems is estimated to decrease from about 100 kg CO2 e in 2007 to about 80 kg CO2 e in 2020. Similarly, the carbon footprint per average GB of data is reduced by a factor of 35. This is due to a number of factors that limit the ICT carbon footprint, particularly energy-efficiency improvements of network equipment, better power management and lower stand-by power consumption of user equipment. Taking into account even an aggressive M2M or machine-to-machine scenario adds only marginally to the expected sector footprint which remains around 2%. Our scenario considers the impact from the billions of connectivity circuits, sensors and tags that are expected to be used by all industry sectors. Embedding connec- tivity in appliances, electric vehicles, and other objects or devices will only give a limited increase in energy usage. Indeed, we expect a relatively low impact on energy usage and CO2 e emissions due to the low energy need of connectivity circuits, sensors and tags, and, when batteries are used, efficient battery operation. Ericsson contributed to the Global e-Sustainability Initiative (GeSI) report “SMARTer2020,” published in 2012 which looked at the ICT sector carbon footprint as well as ICT-enabled carbon abatement. SMARTer2020 analysis According to “SMARTer2020,” widespread adoption of ICT devices has raised ICT’s total associated GHG emissions. From 2002 to 2011 emissions rose from 0.53 Gt CO2 e to 0.91 Gt CO2 e and are projected to rise to 1.27 Gt CO2 e by 2020. This represents a slight increase in ICT’s share of total global emissions, to 2.3% by 2020. Which is in line with our own results in the Ericsson TeliaSonera study. Collaborating on energy research Ericsson takes a leading role in a number of multi-stakeholder research projects within the ICT industry including our customers and suppliers, government, and academia to drive greater energy efficiency in both fixed and wireless networks. Towards well-defined standards Ericsson monitors closely sustainability-related market and regulatory developments worldwide and contributes actively the development of well-defined standards that drive materials and energy efficiency and for assessing climate change impact. Product Take-Back (T-B) and End-of-Life treatment 2012 2011 2010 2009 2008 Unit Product T-B 9,271 5,567 5,672 9,772 3,660 tonne WEEE Treated 8,248 5,567 5,672 9,772 3,660 tonne Reuse 1 5 2 3 9 % Recycling 94 88 91 89 88 % Energy 4 5 6 6 1 % Landfill 2 2 1 3 2 % ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 27
  • 28. Enabling a low-carbon economy Our strategy to shape the low-carbon economy is two-pronged. First, we work in partnership to develop intelligent ICT-enabled solutions for our customers, including primarily operators but also utilities, transportation, governments and others. And second, we actively engage with stakeholders and policymakers nationally and globally to inform public policy, and to drive initiatives that will accelerate the potential of broadband to transform cities, reduce carbon, increase efficiency, spur innovation, and enhance life quality. Enabling a low-carbon economy Stockholm Royal Seaport 28 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 29. Enabling a low-carbon economy As an essential part of our Sustainability and CR strategy, Ericsson advocates broadband’s role for sustainable urbanization and in shaping low-carbon economies of the future. We put emphasis on proofpoints combining business opportunities with low-carbon offerings to help drive the transition to a smart, sustainable soci- ety, and ICT as a catalyst for change. ICT is transforming the economy across many diverse industries, from utilities to transport to healthcare and also governments. Ericsson, through its products and solutions, is helping to deliver on that potential around the world. Intelligent transport systems help make transport cleaner, safer and more seamless while smart grids and smart meters increase energy efficiency by enabling applications like home-energy management and grid automation. The SMARTer2020 study, found a total potential reduction of global CO2 e emissions across six sectors of the economy of 16.5% amounting to $1.9 trillion in gross energy and fuel savings and a reduction of 9.1 Gigatonnes carbon dioxide equivalent (Gt CO2 e) of greenhouse gases. In another study, produced byYankee Group and GeSI mem- bers Ericsson, BT, Deutsche Telekom, and Verizon, the energy reduction impact of eight online or ICT-related activities within households was explored in France, Germany, Italy, Spain and the U.K (referenced as the EU-5) and in the US. The findings showed that the greatest benefit by far could come from an increase in telecommuting. This shift could produce energy savings equiva- lent to 102 million barrels of oil per year in the EU-5, and 214.6 million barrels of oil in the US. Unleashing the full potential of ICT across the economy requires multi-stakeholder engagement and the right government incen- tives and legislative frameworks. Ericsson is therefore active in the global policy agenda and research to position ICT as a prima- ry solution for social and environmental challenges such as rapid urbanization, climate change and natural resource depletion. As part of our strategy, we take a leading role in standardization and development of methods to assess the carbon reduction poten- tial of ICT-enabled products and services and to understand their impacts at many levels, including city level. A bridge to a more sustainable world enabling a low-carbon economy The ICT sector contributes about 2% of global CO2e emissions, but can help eliminate a significant portion of the remaining 98% from other industries. ICT solutions will enable the low-carbon economy of the future… …and will transform industries and cities. By 2050, 70% of the global population will reside in an urban area or city. Stockholm Royal Seaport is an ICT-enabled city district that will be climate-positive by 2030 ICT 2% Waste 3% Forestry 17% Agriculture 14% Energy supply 26% Buildings 8% Industry 19% Transport & travel 13% The CO2e from an annual mobile subscription is equal to driving a car for about 1.5 hours Source: Ericsson and TeliaSonera, 2012 The SMARTer 2020 study estimates that ICT-enabled solutions could reduce global CO2e emissions by 16.5% in 2020 Source: GeSI Source: UN HABITAT Smart grids can help address 67% of the energy lost due to inefficiencies before reaching the consumer ICT 2% A 2012 study of eight ICT-related services in six countries showed they could produce energy savings of 373 million barrels of oil equivalents per year Source: Yankee Group and GeSI 373million Source: Ernest Orlando Lawrence Berkeley National Laboratory and GeSI Source: Stockholm Royal Seaport Innovation Center Source: Ericsson ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 29
  • 30. Enabling a low-carbon economy 10 RECOMMENDATIONS BY THE BROADBAND COMMISSION Recommendations for policymakers were part of a report re- leased by the Broadband Commission for Digital Development in the lead-up to the 2012 United Nations Conference on Sustainable Development (Rio+20) in June.The work was conducted by the Commission’s Working Group on Climate Change, chaired by Ericsson President and CEO HansVestberg. At the COP in Doha, Qatar in 2012, the Arabic translation of the report was launched, now available in six languages. Lead with vision: adopt a long-term National Broadband Plan/Strategy based on universal affordability and accessibility, open markets and innovation, and consciously connect this to your climate goals. Bring convergence: bring convergence to ICT policy formu- lation so that it aligns with other policy areas such as energy, health, education and climate in order to maximize impact. Ensure regulatory certainty: with regards to policy and regu- lations on climate and broadband to create a framework of investment certainty. Be an example: drive cross-ministry collaboration and inte- grated decision-making to align climate and digital goals and use government procurement to send the right market signals. Foster flexibility: identify and remove the regulatory and policy barriers currently hindering research and investment in 21st century ICT-based broadband-enabled infrastructure and low carbon solutions. Advocating for change Ericsson is actively engaged in driving a global policy agenda and raising greater awareness so that policymakers and global leaders can hasten and strengthen the power of ICT and broadband to accelerate global progress towards a low-carbon economy. Making ICT’s voice heard In 2012 Ericsson joined the European Roundtable of Industrialists and its Working Group Energy and Climate Change, to further dialogue on ICT’s role to address areas facing Europe such as energy security and emission reduction policies and regulations. Other advocacy initiatives in which Ericsson is engaged include: • Broadband Commission for Digital Development. An ITU/UNESCO initiative promoting role of broadband to benefit digital inclusion and low carbon economies (see box) • UN Sustainable Development Solutions Network (SDSN). A new initiative to support sustainable-development problem solving at local, national, and global scales. • GeSI. Ericsson is a founding member, Board member and helps lead GeSI’s public policy work and is an active member in several working groups and inititives. • ICT’s role at Conferences of the Parties (COP). For several years, Ericsson has joined with other industry partners to represent the ICT industry in conjunction with the COP annual sessions to assess progress and advocate the role of broadband as a solution industry in the UN Framework Convention on Climate Change (UNFCCC) process. At the COP in Doha, Qatar in 2012 Ericsson supported the GeSI launch of the “SMARTer2020” report. Provide incentives: encourage uptake of low-carbon solu- tions and support market change by rewarding or incentivizing desired consumer behaviors. Spur innovation among individu- als, companies and sectors. Build the market: fund and facilitate scalable pilots to demon- strate feasibility and effectiveness of broadband as an enabler of low-carbon solutions and build a strong business case to attract private investment. Form partnerships: cultivate ‘connectivity’ and ‘co-creativity’ across public, private and non-governmental sectors and industries to help develop a collaborative mindset, shared goals, common language and break down silos. Measure & standardize: develop harmonized metrics and measurements and common standards for calculating both ICT’s environmental impacts and the positive contribution it can make to other sectors – from individual products to sys- tems, and from individual households to city or national levels. Share knowledge & raise awareness: actively disseminate project findings, share best practice and learn from mis- takes to identify success factors and facilitate leapfrogging, especially among lesser developed markets. Communicate the opportunities and synergies that can be achieved through an integrated, trans-sector approach to digital development infrastructure and low carbon solutions. Source: The Broadband Bridge: Linking ICT with Climate Action. Read the full report at www.broadbandcommission.org Listen to Dr. Hamadoun Touré, Secretary General of the ITU talk about how broadband links to climate action. Hans Vestberg, Ericsson's President and CEO, at the Clinton Global Initiative Annual Meeting. 30 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 31. Enabling a low-carbon economy Reinventing the city Explosive growth of cities and rapid uptake of broadband are occurring just as the world is facing up to serious economic, environmental and social challenges. Enabling cities to be more creative, connected and sustainable is a major challenge and a tremendous opportunity to improve the lives of billions of people along with the environment. Today, half the world’s population lives in cities. By 2050, that will rise to 70%, according to the United Nations. Since 70% of CO2 is generated by cities, national governments are looking for ways to reduce the urban carbon footprint. ICT-enabled solutions Smart, sustainable cities around the world have become a testing ground for many of the digital infrastructure and services that provide transformative solutions to minimize carbon emissions while enhancing convenience and connectivity. ICT is also a key enabler solutions such as e-education, e-health, m-health, e-governance, energy- efficient buildings and collaboration tools for remote working. Among the sustainable urban solutions in which Ericsson made headway in 2012 were smart grids and smart meters (see page 32) and deployment of intelligent transportation systems (see page 33). Creating a climate-positive Stockholm Utilizing climate-smart and efficient infrastructure, the city of Stockholm is building Stockholm Royal Seaport (SRS) to create a climate-positive city district by 2030. Some 10,000 homes, and 30,000 workspaces will be connected. The first inhabitants moved in at the end of 2012. Led by Ericsson, the Smart Communication project at SRS is using ICT to develop an attractive living and working environment, while ensuring that the tough sustain- ability goals for the SRS are met. Ericsson engaged with the City of Stockholm dur- ing the earliest planning stages and sup- ported the development of an approach for taking advantage of ICT across several dimensions of the project. This evolved into a formal partnership in Stockholm Royal Seaport Innovation, with our active leadership and participation in cross- sector innovation projects in several areas of the new city district. The first step has been to make the core ICT infrastructure of the area smarter, focusing initially on energy. Ericsson is leading the ICT aspect of the develop- ment of the SRS’s Urban Smart Grid project, managed by the Finnish utility company Fortum. Ericsson is also leading a mobility man- agement pre-study on how travel and transport in the area can be optimized and substituted, where usage of electrical vehicles and new business models are areas being addressed. Johannesburg: Digital City In Johannesburg, South Africa, Ericsson is providing a network and systems integration for a next-generation, fiber- optic network and strategic advisory services to help the city reach its 2040 Growth and Development Strategy, launched in 2011. The network will provide broadband technologies to city offices across Johannesburg – making Johannesburg the first true Digital City in sub-Saharan Africa. Testing new approaches We take a leading role in standardization and development of methods to assess the carbon reduction potential of ICT – enabled products and services. In 2012 we developed a methodology to assess the environmental impacts of ICT – solutions at the city level. Ericsson is also a founding member of the New Cities Foundation, a non-profit Swiss institution dedicated to improving quality of life and work in the 21st-century city, with a par- ticular focus on innovation and exchange, fostering urban solutions through new partnerships between the public, private, non-profit and academic sectors. Also in 2012, Ericsson published the third edition of the Networked Society City Index, which measures the extent of ICT- enabled benefits in cities. “Triple Bottom Line Benefits for City Business,” ranked NewYork, Stockholm and London highest on their ability to use ICT to benefit business. According to the report, key success factors are clear legal and fiscal frameworks, simple and fast procedures and predictable conditions, the report noted. master of her world Gunilla Svingby is one of the first oc- cupants of Stockholm Royal Seaport, one of the world’s leading examples of a climate-positive city district. “As a private person, I am part of the world. I have a responsibility to act, to help the sustainability of the envi- ronment, and I can do that by moving here, because then I have much more influence on what I can do and what I want to do,” says Svingby, a professor of education at Malmö University. “I work in Malmo part of the time and so I want the heater turned on and off when I leave, and not in between; in that way, the interactive technology, and the information it gives me, will make me happy and much more the master of my life.” Listen to an urban planner in Stockholm, the head of the New Cities Foundation, and industry part- ners talk about sustainable cities. Listen to the mayor of Johannesburg, South Africa talk about digital development. Listen to Gunilla Svingby talk about how connectivity helps her live a low-carbon lifestyle. ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 31
  • 32. Enabling a low-carbon economy The power sector emits over 21% of the world’s GHG emissions, according to the SMARTer2020 report. By helping facilitate the integration of renewables and enabling the smart grid, ICT can significantly reduce the inefficiencies of the power sector and the dependence on fossil fuels – the estimated abatement potential by 2020 is 2.0 Gt CO2 e. Smart grids use ICT to gather and act on information about the behavior of suppliers and consumers using the grid.This information can then be used to improve the efficiency, reliability and sustain- ability of electricity production and consumption in the grid. The shift from passive electricity distribution to intelligent, active distribution is resulting in a thousand-fold increase in the number of connected devices along the grid, and electric vehicle charg- ing will increasingly be part of that picture (see page 33). Ericsson is working closely with customers and other industry sectors such as utilities to enable this transformation of the energy sector. Government incentives and regulations, rising energy prices and increased use of renewable energy are contributing to the uptake of smart grids. A number of reports indicate that more than 540 million smart meters will be deployed worldwide before year 2017. As a result, Ericsson sees good growth in our smart grid and smart meter solutions. For instance, we have provided smart grid and smart meter solutions to utilities Hydro-Quebec in Canada and Acea in Italy. Ericsson also plans to deploy, systems integrate and run a smart-metering network for the utility Elektrilevi in Estonia and intelligence in the grid its nearly half a million subscribers. Following a pilot project with 5,700 smart meters, 630,000 smart meters will be rolled out from 2013 to 2016. Measuring the impact To better understand the sustainability potential of such solu- tions, Ericsson conducted a Life-Cycle Assessment (LCA) of smart metering for electricity distribution, based on an Australian case, as part of our series of studies exploring ICT solutions and the potential CO2 e emissions reductions they can achieve. The case modeled CO2 e emissions for the total system over a lifetime of 20 years, including both negative impacts from the ICT products and the positive impacts of their usage, in a scenario including 30,000 customers. The results showed that three main benefits – elimination of manual meter reading, fewer vehicles leased for meter reading, and reduction of energy used in the home – yielded a positive net effect on emissions already at around 1% energy savings in the home (1% corresponds to a saving potential of about 80kg CO2 e). The impact would be substantial at 2% and 4% (corresponding to about 160 kg and 320kg CO2 e). Thus, energy savings in the home have the greatest enabling effect, which far outweighs the direct environmental impact of smart metering installation and operation. The full case study "Smart metering in Australia" is available online at www.ericsson.com. An Ericsson LCA study of smart metering for electricity distribution showed energy savings in the home could cut carbon significantly. 32 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 33. ICT for smart transport solutions Fully integrating transport infrastructure, vehicles and users with ICT has been shown to significantly reduce environ- mental impacts and deliver improved safety and efficiency, and enables the connectivity required to support infra- structure for electric vehicles (see box). In the “connected car,” connectivity and service management enable new safety features intended to avoid crashes and to share information if accidents have oc- curred. Timely emergency response to an accident scene is essential to mitigating the negative impacts of traffic accidents. With partners in the automotive industry and road authorities, we are piloting road safety services, including Harmonized eCall European Pilot (HeERO), aimed at implementing the standardized eCall, an automatic emergency call system acti- vated in the event of a serious accident. The EU requires all cars to be equipped with eCall by 2015. In addition, Ericsson has been developing a cellular road haz- ardous warning project and the feasibility of cellular car-to-infrastructure commu- nications in a public-private initiative, the Cooperative Cars project. Connected commuting Beyond safety, connectivity can enhance the commuting experience.The Connected Commuting report produced in 2012 by Ericsson and the New Cities Foundation found that real-time, mobile sharing of information between commuters added predictability to their journey, reducing stress and even saving time. Read the full report at www.ericsson.com. Tracking carbon savings in buses The 3.2 million citizens of Curitiba, Brazil, and public transport operators are benefiting from an electronic ticketing and fleet management system enabled by mobile broadband in a joint project with Vivo, Dataprom, and Ericsson. Ericsson conducted an ICT enablement assessment study of the Curitiba bus operation in 2012. Although it is hard to predict the exact impact of ICT-enabled efficiencies, there are indications that ICT solutions could increase the amount of public transportation and replace car travel while also improving public trans- portation efficiency. These developments will in turn make bus travel more attrac- tive, thereby reducing the amount of car travel. The study, which looked at a bus opera- tion representing 1,928 buses, found if the bus operation can be made
1% more efficient in terms of CO2 e (based on less fuel used), the potential direct CO2 e savings would be about 2,000 tonnes of CO2 e per year. Read the full study at www.ericsson.com. Enabling a low-carbon economy Providing a platform for electric vehicles As more and more countries identify electric vehicles (EV) as one of the solutions for a more sustainable society, ICT will play a critical role in the infrastructure to enable volume deployment of EVs. Charging large numbers of cars simul- taneously across the electricity grid is challenging. With ICT-enabled solutions, real time information can be used to control EV charging and manage peak energy demand on the grid. This allows utilities to handle the added demand with only modest changes to the distribution network. With Volvo Car Corporation, utility Goteborg Energi, a leading utility in Sweden, and Viktoria Institute, a nonprofit IT research institute, Ericsson is engaged in a project to bring mobile connectivity to electric cars and put choice and control over the charging schedule into the hands of drivers. The new architecture allows drivers to control charging of cars while they are plugged into any ordinary power outlet. Additionally, the system directs energy costs to the car owners’ bill.The driver sets the time and amount to charge on a console in the car or remotely via a smartphone or tablet. Using the mobile network, the car then communicates with the grid so that charging is scheduled based on energy prices on the grid, reducing user costs. For the energy utilities, coordinating the charging of cars across the grid is more efficient and sustainable. Listen to passengers in Curitiba, Brazil talk about the benefits of 3G-enabled public buses. ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 33
  • 34. Conducting business responsibly conducting business responsibly Our strategy is to earn the trust of our stakeholders by reducing corporate responsibility risks throughout our business operations. Good governance and strong business ethics are embedded in our value chain, from supply chain management to our own operations to responsible use of our products. All our business practices, from a rigorous sales compliance process to zero tolerance for corruption, are aligned with our Code of Business Ethics, anchored in universal values of human rights. By engaging with stakeholders, we are better able to manage emerging ethical dilemmas. 34 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 35. Conducting business responsibly Demonstrating integrity and upholding the same high ethical standards wherever we operate are strongly rooted within Ericsson’s corporate culture. Good governance builds trust with stakeholders, ensures accountability across the Group and helps us manage our corporate responsibility risks. The corporate governance framework is provided by the Ericsson Group Management System (EGMS). Among other things, this framework includes the Ericsson’s Code of Business Ethics, the Code of Conduct and the Sustainability Policy. Our Global External Assessment Program, monitored by assurance provider Intertek, audits Ericsson-wide application of Group policies and directives, management of operational risks and achievement of corporate responsibility objectives. Good governance, strong ethics build trust conducting business responsibly Wherever we operate, integrity and high ethical standards are fundamental to our work. Through high ethical standards and our Code of Business Ethics, we promote fair employment, safe working conditions and concern for the environment. We have zero tolerance for corruption… …and put human rights in focus throughout our value chain. In 2012, Ericsson joined the Institute for Human Rights and Business Framework to discuss best practice for corporate responsibility in Myanmar Our auditors conducted over 640 supplier Code of Conduct audits in 2012 Our Sales Compliance Board is improving internal governance of human rights issues in the sales process Close to 100% of Ericsson employees worldwide have acknowledged our Code of Business Ethics Managing and assessing risk Risk management is embedded in Ericsson’s Strategy and Target Setting process, and our risk assessment processes include human rights, corruption, and other sustainability-related risks. Risk drivers, and relevant actions to address them, are reported quarterly across the company. Risks are categorized into four different groups, Industry and Market, Commercial, Operational and Compliance and their probability and impact on the business is assessed. Manage- ment accepts, reduces, or eliminates risk through mitigating actions and central Group Risk Management ensures that risks are followed up in various governance forums. Environmental and Social Governance (ESG) risks are among the key elements of our risk management approach. Top level targets and governance A sustainability leadership target is part of the 2013 Group balanced scorecard and performance against sustainability objectives is included in the performance assessment of senior managers. Additional targets and long-term objectives relating to specific areas are highlighted on pages 48-50. A cross-functional Sustainability and CR Steering Group meets regularly to follow up on strategic and operational issues. The Board of Directors is kept regularly informed about key issues facing Ericsson. In 2012, in addition to strategy, targets and annual performance, key topics on which the Board was briefed included CR risks and Internal operations, as well as our human rights progress and our strengthened Sales Compliance Board processes. Business ethics In 2012, the Code of Business Ethics was updated to reflect the new UN Guiding Principles on Business and Human Rights. Implementation of these principles throughout Ericsson’s opera- tions will continue into 2013. Upholding Ericsson’s high standards for sustainability and CR is also the responsibility of every employee. In 2012, close to 100% of Ericsson employees worldwide have completed the acknowl- edgement process for the Code of Business Ethics. To improve transparency, the Code of Business Ethics, including information on reporting of violations was published on the Ericsson website in more than 30 languages. Online training on sustainability and corporate responsibility is available to all employees. Source: Ericsson ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 35
  • 36. in support of human rights Respect for human rights is central to Ericsson’s Code of Business Ethics and we work hard to embed it throughout our business operations. Ericsson supports the UN Declaration of Human Rights and International Labor Organisation Conventions and has been a signatory to the UN Global Compact’s ten principles in the areas of human rights, labor, environment and anti-corruption since 2000. From 2006-2009, Ericsson was a member of the Business Leaders Initiative on Human Rights. In 2012 our commitment to uphold high human rights standards was stepped up and organiza- tional processes strengthened, notably within our sales process. Growing expectations The impact of ICT on human rights is complex, with rapid technological develop- ments raising new questions, and is an area of increasing concerns to a wide range of stakeholders, from investors to human rights organizations. Ericsson engages with a range of stake- holders to promote the positive use of ICT to uphold human rights and prevent the technology’s misuse, and we support efforts to develop a multi-stakeholder approach to human rights across the full ICT ecosystem. Embedding human rights in the value chain Integration of the UN Guiding Principles on Business and Human Rights into Ericsson’s governance framework began when the Code of Business Ethics was updated in 2012 to reflect the principles. In 2012, Ericsson launched a two-year Business Learning Program with Shift, an independent, non-profit center for business and human rights. Shift was centrally involved in shaping and writing the UN Guiding Principles and aims to help organizations put them into prac- tice. The aims of our Business Learning Program are to further strengthen our framework on human rights, develop an Ericsson Human Rights Impact Assess- ment (HRIA) tool and increase internal assessment competency in the area, and to gain an external expert view on the implementation of our commitment to respect human rights. Sales Compliance Board In 2012, the Sales Compliance Board was strengthened to improve internal gover- nance of human rights issues in the sales processes. The Board meets bi-monthly, and a core operational team meets more regularly to discuss and review different potential risks and to prepare and inform the decisions of the Board on specific sales. The Board has broad company rep- resentation including, Legal Affairs, Trade Compliance, Government & Industry Relations, Sales & Marketing, Communi- cations, Business Units and Sustainability & Corporate Responsibility. It provides a forum on a range of issues affecting poli- cies and sales decisions for products and markets such as human rights, corrup- tion and sanctions, and aims to reduce the risk that the company’s technology directly or indirectly impacts negatively on human rights. During 2012, the Board focused on estab- lishing a country risk screening process which assesses country risks for po- tential violations of human rights across Ericsson business. The Board also works to ensure that sales decisions in the portfolio adhere to the Ericsson policies and directives. Risks are evaluated using the Ericsson country human rights risk- Conducting business responsiblyConducting business responsibly Mobile communications is expected to contribute significantly to employment in Myanmar, according to an Ericsson and Deloitte study. 36 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 37. ranking index, which is analyzed together with market and portfolio information to assess risks, as part of the decision base in the Ericsson sales approval process. The country risk screening process is based on the risk indices of Maplecroft, a UK-based global risk and strategic con- sulting firm, which provides an indepen- dent ranking available to all Maplecroft users. Our process focuses primarily on the following Maplecroft indices: • Human Rights Risk adjusted for telecom • Corruption • Democratic Governance • Freedom of Opinion and Expression Complying with trade sanctions Ericsson has a Group-wide trade compli- ance policy and process for managing compliance with relevant export control, customs and other trade laws and regula- tions, such as international sanctions. An automated ‘sanctioned parties’ list screening (utilizing black lists from the UN, the US and the EU) is embedded in Ericsson’s business system to further en- sure compliance with sanctions and other export control regulations. cyber security in the spotlight Communications networks are critical infrastructure in today’s global economy and users of the digital information ecosystem need to know their data is safe. Dealing effectively with cyber threats is therefore vital and Ericsson considers cyber security a highly significant and important issue. Security is a key priority in product development, both at node and system level. Cybersecurity is a primary aim of the OECD Council 2011 recommendation on Principles for Internet Policy Making and the European Parliament’s 2012 adoption of the “Resolution on cyber security and defense”. A European Commission cyber security directive for the full ICT value chain is also due in 2013. Ericsson recognizes that network functionality, data and the right to privacy must be protected, so all products are de- signed with appropriate levels of security, and risk analysis is conducted to protect products against threat scenarios. Our advanced security research covers all network, terminal and application environments. The company’s Information Security Management framework is aligned with the international information security man- agement standard ISO/IEC 27001. Ericsson is also actively engaged in discussions over security assurance standards and compliance methodology for the telecom industry and within the area of standardization, as well as leading the de- velopment of industry specifications on security architecture, protocols and networks. Conducting business responsibly Respect for trade sanctions against Syria and Iran has been raised as an area of concern by stakeholders. Ericsson adheres to the embargo and sanctions imposed by the US, EU and other countries partly based on UN sanctions. Due to the ongoing conflict in Syria, our business there was at a standstill in 2012. In Iran, since 2010, when further sanctions were implemented, we only see out existing contracts. During 2012, we continued to deliver on contracts dating back to before 2010, and we anticipate that sales of infrastructure related products in Iran will be phased out during 2013. We anticipate that our business activities will thereafter be limited to existing software license agreements and the provision of services under existing contracts or with respect to equipment already delivered by Ericsson. At the Social Good Summit 2012 in NewYork, Elaine Weidman Grunewald, VP Sustainability and CR, discusses how Ericsson technology is enabling the right to education in many places around the world. ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 37
  • 38. In 2012 Ericsson re-established a presence in Myanmar for the first time since 1998, following ongoing political reforms, the suspension of sanctions by the European Union and lifting of prohibitions on U.S. investment in the country. Many international observers see real opportunities for positive and meaningful developments to improve the human rights situation and deepen the transition to democracy in Myanmar. Ericsson strongly believes that access to telecommunications would be beneficial to the people, economy and society of Myanmar. Multi-stakeholder approach In conjunction with re-establishing pres- ence in Myanmar, Ericsson is identifying and collaborating with respected human rights stakeholders to assess the human rights situation, and the socio-economic impact of telecommunication. We have joined an initiative by the Institute for Human Rights and Business (IHRB) and the Danish Institute for Human Rights (DIHR) to apply human rights principles and standards in business activities in Myanmar using a multi-stakeholder en- gagement process.The initiative is based on applying the United Nations Guiding Principles on Business and Human Rights. Relatively untouched by ICT Myanmar has been almost untouched by the tremendous developments in telecom- munications of the last two decades. Of an estimated population of over 60 million, only around one million people today enjoy the benefits of a mobile telephone, and it is estimated that fewer than 400,000 have Internet access. A study conducted by Ericsson and Deloitte in 2012 forecasts that potential GDP impact of telecommuni- cations in Myanmar could be around 7.4% over the next three years, if subscriber penetration rises to 35%, in line with regional trends.The full study is available at www.ericsson.com. Cautious optimism In anticipation of business activity in Myanmar, Ericsson has initiated a Human Rights Impact Assessment based on the Towards positive, responsible change in Myanmar UN Guiding Principles (see box below). We recognize that human rights consider- ations must be carefully considered when doing business in Myanmar. Human rights and corruption risks remain a concern and must be the subject of continuous dialogue and risk management processes. In 2012 Ericsson joined a dialogue in Myanmar facilitated by the governments of Sweden and Myanmar to discuss best practice in corporate social responsibility. We also joined civil society experts from Myanmar and abroad, policy-makers and other business representatives at the global forum Wilton Park to discuss challenges related to investment in Myanmar, such as corruption, inadequate labor standards, land disputes, and armed conflict between ethnic groups, emphasizing the need for good governance, transparency, account- Assessing our human rights impact As groundwork for conducting businessin Myanmar, Ericsson intends to conduct a human rights impact assessment with the following aims: • Describe the social, operational and human rights context for doing business in the country • Identify the "rights-holders" potentially impacted by operations in country Conducting business responsibly ability and enhanced due diligence. As Myanmar continues its political transition, business can help foster an open and transparent business climate. • Identify possible actions to mitigate or adapt to the risks while meeting obligations to rights-holders and the reasonable expectations of all stakeholders • Provide a framework for ensuring that we respect human rights across our business operations in line with the Ericsson Global Management System • Assemble relevant facts, figures and recommendations to enable constructive engagement with stakeholders • Avoid complicity in human rights violations, and in any unintended use of products, services or solutions • Identify effective and locally appropriate grievance mechanisms and remediation procedures 38 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 39. Conducting business responsibly Countering corruption As a signatory to the UN Global Compact, Ericsson aspires to fulfill its 10th principle, namely to: “work against corruption in all its forms, including extortion and bribery.” The Ericsson Code of Business Ethics summarizes Ericsson´s zero-tolerance policy against any type of corruption. Ericsson’s anti-corruption program is headed by a Chief Compliance Officer and monitored by Corporate Audit and the Board of Director’s Audit Committee. A Compliance Forum (consisting of representatives from Corporate Audit, HR, Legal and Security) and a global Compli- ance Legal Network ensure regular com- munication on compliance matters. In 2012 the program was strengthened and a new anti-corruption directive issued to ensure that Ericsson’s zero tolerance policy against corruption applies through- out the organization. Further guidance was also provided on how to handle dif- ferent situations to avoid breaches. Areas covered included the offering and receiv- ing of gifts and other benefits; arranging and attending events, relationships with suppliers and business partners, and facilitation payments (which Ericsson prohibits). A new directive on donations and sponsorships means these must now be approved by a central committee. Guidance for employees Training is vital for effective compliance, and up until the end of 2012, more than 70 000 employees have taken the anti- corruption training. In early 2013 we launched a new, updated training, which included top management engagement from all Regions. As of Q1 2013, some 25 000 employees have taken the course. It is a rolling program, and all units have deadlines for when they are expected to complete the training during 2013. The training helps employees identify problematic situations and evaluate appropriate courses of action. An anti-corruption pilot project focusing on Central Asia (a region considered high risk byTransparency International) was launched in 2012, which includes a review of poli- cies, directives and selection of business partners. Our aim is for similar projects to be run in other regions during 2013. Reporting violations In 2012 Ericsson’s reporting violation process, the process whereby suspected violations of law or the Code of Business Ethics can be reported through e-mail or postal letter to Corporate Audit, was expanded in scope. It was previously limited to only accounting and auditing matters, and to Ericsson employees. It is now open to allow a broader stakeholder group, for example, suppliers, customers and other partners, to report suspected violations of laws or of the Code of Business Ethics. Furthermore, the report- ing violations process is now published on www.ericsson.com to give all stake- holders access. In 2012 the number of violations reported through Corporate Audit’s reporting violations mailbox in- creased somewhat, from seven in 2011 to 16 in 2012. Of the 16 reported incidents, two concerned corruption (bribe-taking). All received reports are reported to and discussed in the Compliance Forum which takes a decision on how the report shall be handled and initiates an appropriate investigation. This investigation is carried out through our Corporate Audit unit or other appropriate functions. What happens next depends firstly of the outcome of that investigation and secondly on the nature of the matter. Our basic principle is that all breaches of the code or other misconduct result in at least a formal warning for the employee or other person concerned and then there is a number of steps that the company will take depend- ing on the nature and severity of the breach including termination of employ- ment and reporting to the local police. In addition to investigations related to the reporting violation process, Corporate Audit is conducting on-going audits of Ericsson’s operations worldwide. Audit findings in those audits, which are based on a risk assessment and other available information, could also lead to further investigations when there are indications of potential breaches of the Code of Business Ethics. The Audit Committee of the Board of Directors are regularly informed about audits conducted and all matters that are reported through our reporting violations system on a regular basis. Partnering to fight corruption Ericsson joined the World Economic Forum Partnering Against Corruption Initiative (PACI) in 2012, a private-sector initiative to counter bribery and provide a platform for corporate anti-corruption programs. Part of PACI’s mission is to establish rules and provide industry guidance on how to deal with corruption. As a signatory, Ericsson commits to a zero-tolerance policy against corruption, and to implement systems and controls that fulfill that commitment. Ericsson will now engage in joint efforts with other signatories to combat corruption.
 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 39
  • 40. Conducting business responsibly Ericsson focuses on continuous improvement in managing our supply chain to ensure our suppliers meet the high social, environmental and ethical standards set out in the Ericsson Supplier Code of Conduct (S-CoC) requirements. Online training in 13 languages is publicly available for suppliers and other stakeholders on Ericsson’s website, along with other material. Assessing risk All Ericsson Regions and Business Units have trained auditors and procedures in place to identify and assess high-risk suppliers and to conduct and follow up S-CoC audits and on-site assess- ments. A systematic and documented approach for identifying high-risk suppliers assesses regional risk factors. Prioritized risk areas include working at heights and chemical handling and pri- oritized risk categories include die-casting and network roll-out; tower manufacturing and galvanization; enclosures; mechanical parts; power supply; printed circuit board manufacturing, ware- housing, logistics and recyclers. Monitoring supplier performance In 2012, over 640 supplier Code of Conduct audits and on-site assessments were performed by Ericsson’s 179 S-CoC auditors (see graph). The number of audits rose while on-site assess- ments decreased .This is in line with our effort to prioritized the more robust audit procedure rather than assessments. Year on year, analyses of our auditing activities demonstrate significant improvement in the supply chain. A review of audit reports from 65 suppliers audited in both 2011 and 2012 showed that critical findings declined by more than 50%. Improvement areas vary between regions and supplier categories but include areas such as overtime, environmental management, corrective and preventive actions following incidents and communication of CoC requirements further down the supply chain. Environmental management and performance have always been prioritized in S-CoC audits. To further enhance this area, a program for focused Environmental Audits was launched in India Clear links in the supply chain and Northeast Asia in 2012, as a complement to the existing S-CoC audits. In 2013, this program will include at least two additional regions. In 2012, Ericsson published detailed Supplier Occupational Health and Safety (OHS) requirements, including 11 “operational OHS standards”. These requirements are intended to further help our suppliers improve their OHS performance. At the same time they are contractually binding, as part of the S-CoC require- ments. Meeting customer requirements The Joint Audit Cooperation (JAC) is a cooperation of nine European telecom operators. JAC members conduct Corporate Responsibility audits of their suppliers, including Ericsson facto- ries, and share the audit results between the nine JAC members. The members of JAC, all of whom are Ericsson customers, are: Belgacom, Deutsche Telekom, France Telecom, KPN, Swisscom, Telecom Italia,Telenor Group,TeliaSonera, andVodafone. Ericsson sites and Ericsson suppliers have been audited by JAC auditors in 2011 and 2012, with satisfactory results. SUPPLIER CODE OF CONDUCT – AUDITS AND ASSESSMENTSPERFORMANCE OF SELECTED SUPPLIERS – GLOBALLY Number of auditors Number of audits Number of assessments Supplier Code of Conduct Audits and Assessments 2008 2009 2010 2011 2012 600 500 400 100 200 300 0 50 265 300 130 528 503 150 550 218 170 392 270 179 494 152 Source: Ericsson 15.1% 27.1% 57.8% Critical Warning Conformity 6.6% 24.8% 68.7% Performance of selected suppliers − globally 2011 2012 Source: Ericsson Reaching out to our suppliers Ericsson held a forum in 2012 with selected key suppliers to discuss energy efficiency and greenhouse gas emissions, since suppliers play an important role in helping Ericsson to reduce its indirect emissions.The forum resulted in sharing of best practices and challenges related to reducing, measuring and reporting greenhouse gas emissions and established networks for knowl- edge sharing and joint initiatives. Listen to Ericsson’s expectations for suppliers in the Supplier Code of Conduct program. Source: Ericsson Source: Ericsson 40 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 41. Conducting business responsibly Uses of conflict minerals in Ericsson products Tracing conflict minerals Ericsson is taking steps to increase the transparency regarding ‘conflict minerals’ in our supply chain. These minerals include tantalum, tin, gold, or tungsten, which may be mined in condi- tions of armed conflict and human rights abuses, notably in the Democratic Republic of Congo (DRC) and neighboring countries. All the four minerals can be used in electronic components in our products. Tin is the most widespread and used in the solder in almost all electronic products. Due to the small quantities and the long supply chain with several actors between Ericsson and the smelters, and between the smelters and the actual mine, traceability is very complex. To effectively address the issue of conflict minerals, including compliance with section 1502 of the Wall Street Reform and Consumer Protection Act and the disclosure rule adopted by the US Securities and Exchange Commission during 2012, Ericsson takes active measures in accordance with its sourcing and product management processes. The first disclosure is due in May 2014. Ericsson’s suppliers are expected to comply with the Ericsson list of “Banned and Restricted Substances”, which now states that suppliers must establish due diligence processes consistent with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and to report, upon Ericsson’s request, on the use of conflict minerals and on actions taken to verify the origin of used conflict minerals. Our longstanding use of material declarations means the company already has significant awareness of the products where conflict minerals are used, which will assist greatly in identifying suppliers important in the further assessment of mineral origin. Most suppliers in the pilot were well prepared for the upcom- ing legislation and were able to report on smelters used in their supply chain. Extensive inquiries and due diligence efforts are expected to be required in order for Ericsson to be able to fulfill the new rules and make the requested disclosures. During 2012, Ericsson piloted the common industry questionnaire developed by the Global e-Sustainability Initiative (GeSI) and the Electronic Industry Citizen Coalition (EICC) with our major suppliers of tan- talum- and tungsten-containing components. We found that most suppliers in the pilot were well aware of the issue. We received more than 160 unique smelter names in this pilot. Ericsson is a participant of the Extractives Workgroup, a collabo- ration between GeSI and the EICC, focusing on conflict minerals. Ericsson is also active in the ongoing standardization regarding conflict minerals via the Electronics Industries Association, IPC. Conflict-free smelters The Electronic Industry Citizenship Coalition (EICC) and Global e-Sustainability Initiative (GeSI) have jointly developed the Conflict-Free Smelter (CFS). This voluntary program, open to all industries, involves independent third party evaluation of smelter and refiner procurement to determine whether processed materials originate from conflict-free sources. Due to the complexity of global supply chains and several steps between the original equipment manufacturers and the mine it is very difficult, or almost impossible, for individual companies to ensure that minerals contained in their products are conflict free. This is where the CFS global program fills an important gap in responsible sourcing by creating a credible system for all industries to enable conflict free sourcing of minerals. The CFS program assesses smelters or refiners of targeted minerals and provides validation that they are conflict-free. To date only a few of all worldwide smelters are certified, and at the end of 2012 there were still no certified smelters for tin or tungsten. Participation from other industries is vital for the success of the program. Uses Tantalum (Ta) Tin (Sn) Tungsten (W) Gold (Au) Usage in Ericsson products. Small amounts used in certain capacitors. Among Ericsson used capacitors less than 2% contain tantalum. As solder in printed circuit boards. Tin has replaced lead as common solder metal and almost all Ericsson printed circuit boards are soldered with tin solder. Small amounts in specific electronic components, mainly oscillators. Small amounts in electronic devices. ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 41
  • 42. LEADING WITH VALUES Our People Strategy centers on building the best talent in the industry. We aim to attract the best people, develop them to reach their full potential, and engage them every step of the way. Our core values of respect, professionalism and perseverance are embedded in all that we do, and provide the foundation for achieving a diverse, talented and high-performing workplace. Leading with values 42 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 43. 110,000We are more than 110,000 people working for customers in more than 180 countries LEADING WITH VALUES At Ericsson, people are our most valuable asset, critical to maintaining our global leadership in an increasingly complex and dynamic market. Our People Strategy is focused on building the best talent in the industry. We aim to attract, retain, and develop a diverse workforce that can deliver on a profitable growth strategy for the company. Efficient, effective, engaged We nurture talent throughout the entire employee lifecycle, from finding the right person for the job to providing opportunities to grow and develop, to engaging people throughout their careers. We utilize workforce planning to help ensure a high-performing workplace. Three factors must be in balance to attract, retain and develop the best people: efficient use of resources, effectiveness to achieve quality performance, and engagement. Ericsson has a very high level of employee engagement, supported by the consistently high response rate to the annual employee survey, Dialog. In 2012, this was 94%, exceeding industry benchmarks. Values at the core The Ericsson core values – respect, professionalism and perseverance – guide all that we do, and form the basis of how we demonstrate leadership. We see all of our 110,000 employees as leaders. We also expect our managers to lead, not just man- age, by providing proper feedback, setting clear goals and being good communicators. During 2012, we have made big investments in globalizing our processes and tools to further improve our effective management of talent, and this will continue during 2013. Sustainability motivates talent Increasingly, people want to work for a company with values, which affords them opportunities to develop and thrive, and which contributes in positive ways to society. For Ericsson, that translates into Technology for Good. This is especially important for attracting and developing young talent. They are not only among the most well-informed genera- tion of workers, thanks to the digital age, but seek out companies with a social conscience. All employees at Ericsson are encouraged to learn about sustainability and corporate responsibility through an e-learning program. Since 2010, over 20,800 employees have completed the program, and the training is part of New Employee Learning Milestones. In addition, they have opportunities to actively en- gage in sustainability and corporate responsibility through global programs like Ericsson Response (page 19) but also through contributions at the local level in many ways. Employee engagement 2012 2011 Unit Engagement index 77 77 % “I am proud to say that I work for Ericsson” 88 89 % Overall, I am extremely satisfied with Ericsson as a place to work 80 80 % I would recommend Ericsson as a great place to work 77 78 % Respect Professionalism Perseverance ERICSSON’S CORE VALUES Our values are the foundation of our culture. They guide us in our daily work, in how we relate to each other and the world around us and in the way we do business. Engaging a diverse workforce ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 43
  • 44. We constantly re-examine the leader- ship competencies needed to lead our business. As our business reality evolves, so do our definitions and demands on high-quality leadership. A rigorous annual process identifies, assesses, and devel- ops people to assume strategic roles in the company. We continuously review our leadership pipeline to ensure we are developing the right leadership compe- tencies and capabilities at all levels of the organization. Meeting demand for global leadership High engagement and performance requires strong leadership, which in turn fosters innovation. We expect our leaders to communicate well, set clear goals and ensure that goals are followed up regu- larly – feedback and coaching is part of the daily routine. We have best-in-class management de- velopment programs like Excellerate and Ericsson R&D Global Graduate Program which help attract top talent from around the world. Securing the talent pool Finding the top talent in the industry means attracting and selecting the best. At university level we focus our recruiting efforts at global and regionally distin- guished institutions. When selecting experienced hires, we attract from the foremost companies in the industry, and utilize a selection process aligned to our critical competencies. There is a great need to encourage more young people to pursue careers in ICT, even before they enter university. We have engaged in programs like Connect To Learn, focused on secondary educa- tion for girls, in part to encourage more girls to pursue ICT (page 14). While still a young program, we hope to explore in the future how Connect To Learn could contribute to increasing female talent, especially in emerging markets where we see the greatest potential for growth in the future. LEADING WITH VALUES Employees 2012 2011 2010 2009 2008 Unit Year end 110,255 104,525 90,261 82,493 78,740 No. Average 112,758 103,130 91,825 86,360 78,989 No. Average employment 7.6 7.5 8.0 8.0 7.5 Years Full time 109,071 103,524 89,251 81,391 - No. Part time 1,184 1,001 1,010 1,102 - No. Temporary employees 766 901 978 693 1,124 No. Employees who have left Ericsson 12,280 10,571 10,066 9,147 3,415 No. Employees who have joined Ericsson 18,010 24,835 17,834 12,900 8,144 No. Employees working on overseas assignment 1,094 1,184 1,240 1,428 - No. Having a purpose beyond profit is increasingly important for attracting top talent today, especially among young people, and Technology for Good is an excellent example of what makes us stand out as an employer.” Bina Chaurasia Senior Vice President and Head of Human Resources 44 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 45. Our competence development programs prepare our people to meet the challenges of an industry experiencing dramatic technological shifts. Through classroom or online learning, employees constantly acquire knowledge and evolve new com- petencies, with learning plans agreed and documented in individual performance plans. In 2012, over 1.7 million total hours were spent on formal learning (online or classroom based) with an average 18 hours of training per employee and over 75% of employees have taken some form of structured e-learning or classroom training, as well as on-demand course materials and tutorials. Learning with business results The Everyday Learning suite of learning methods and tools helps employees align learning activities, skills acquisition and capabilities in the workplace for current and future needs. Future ready According to the 2012 employee engage- ment survey Dialog, employees believe that they are getting the training and development needed to keep up with customer demands (5% above industry average) and that they are given a real opportunity to improve their skills and competencies through leveraging Everyday Learning methods and enablers (6% above industry average). The Dialog results also showed that managers are being proactive and engaged in their employees’ growth and development needs (8% above industry average). Learning at fingertips The internal learning ‘smart’ web portal managed by Ericsson Academy handles over 25,000 unique visitors per month and provides approximately 7,000 learning targets, ranging from instructor-led training, technical labs and workshops to tutorials, webinars, and collaboration forums. Our learning vision: – Just enough. – Just in time. – Just for me. LEADING WITH VALUES An efficient infrastructure and IT tools for collaboration support learning and know- ledge sharing among employees, and with our partners, customers and suppliers. Focusing on key competencies Maintaining our key competencies in technical areas is critical. For 2012, we set a target to expand the Ericsson Technical Certification Program (ETCP) to include more technology areas. The current scope of the technical domains includes IP Broadband and Core, Media and Applications, Radio Access Networks, and Solutions. The cumulative number of passed exams increased by nearly 200% during 2012. In a fast-paced industry, competence development is at the top of the agenda for Ericsson. ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 45
  • 46. Focus on diversity A diverse workforce is a strong, competi- tive, innovative and resilient workforce. Ericsson has a focused strategy aimed at ensuring that our employee base and our leadership teams are as diverse as the world in which we operate. Focus on diversity As we are working for customers in 180 countries around the world, a diverse workforce is extremely important to Ericsson. Our definition of diversity extends beyond gender, race, religion, ethnicity, age and other established parameters to differences in experience, personalities, thoughts, family situation etc. While we focus on enhancing diversity from many different perspectives, a particular effort has been made over the past few years to increase female representation in leadership roles. Nearly a third of the members of the Executive Leadership Team were women in 2012 (see graph), a substantial increase in the past five years; the same percentage have nationalities other than Swedish. Similarly, the number of women in the top 250 most senior positions also continued to rise (see graph). There is still much work to be done. The number of women in Ericsson’s total workforce is 22%, reflective of a male- dominated industry and the recruitment base from engineering schools. To ad- dress this challenge Ericsson has a three- fold global program which starts with top-level commitment, is built in as part of the talent management process, and empowers regional leadership to tailor diversity activities to their needs and their markets. Now that we have diversity plans in place for every Region, Business Unit and Group Function, our focus for 2013 is to execute on these plans. Our main focus will be on: • Recruiting more women into core business areas • Identifying female leadership talent early in career • Developing talent to increase proportion of senior and executive female leaders • Securing support mechanisms for recruiting, promoting and retaining women Addressing ICT gender gap Externally, Ericsson supports a host of activities in support of greater diversity in society, particularly focused on women in executive roles and encouraging girls and women in ICT careers or education: • In March 2012 Ericsson, as a member of the European Round Table of Industrialists signed a voluntary target to increase the number of women in decision-making roles • Ericsson is among ten Swedish companies in the Battle of the Numbers, a private sector project aimed at raising the number of women in operational and decision-making positions • Ericsson is a member of the Women Leading Women in ICT Action Group, launched in September 2012, co-led by the Institute of International Education (IIE), the US Office of Global Women’s Issues and the Global Fund for Women, to help build the pipeline of women and girls entering ICT and enhance the retention and advancement of women studying and working in ICT, among other aims • Ericsson is a member of the Broadband Commission Working Group on Gender EMPLOYEES BY AGE AND GENDER 2012 30,000 35,000 15,000 20,000 25,000 10,000 5,000 0 Employees by age and gender 2012 Female Male 26-35Under 25 36-45 46-55 Over 55 Source: Ericsson LEADING WITH VALUES FEMALE REPRESENTATION (Percent) 30 15 20 25 10 5 0 Female representation Percent Overall workforce Line managers Executive Leadership Team 20092008 2010 2011 2012 Source: Ericsson Diversity 2012 2011 2010 2009 Unit Executives with a background other than Swedish (Top 250 positions) 55 50 50 - % Executives with a background other than Swedish (ELT) 29 29 36 15 % At Ericsson, diverse teams stimulate innovative thinking and new approaches to challenges. Source: Ericsson Source: Ericsson 46 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 47. Health and safety top priority A strong health and safety culture, backed by a rigorous system of responsibility and accountability, is a top priority at Ericsson. Beyond regulatory compliance, a robust global approach to Occupational Health and Safety (OHS) delivers business benefits through reduced costs, improved morale and increased produc- tivity. Customer demands for OHS excellence are increasing. In 2012, we updated our OHS policy and strengthened our practices to meet these expectations. Ericsson’s global operations are certified to the OHSAS 18001 requirements to deliver better risk control and improved perfor- mance. OHS is integrated in working processes and as part of the Ericsson Group Management System (EGMS) undergoes internal audits as well as annual external audits by assurance provider Intertek to ensure Ericsson meets OHSAS 18001. In 2012, we introduced a best-in-class OHS Supplier Requirements Standard (see Supply Chain page 40) to underscore the impor- tance of this area in our supply chain. Tracking root cause Our aim is to reduce the number and severity of OHS incidents. All incidents are investigated for root causes and OHS profes- sionals in the organizations receive regular training. An improved framework for reporting incidents will be launched in 2013. Sharing best practices and measuring incident investigation quality are among the OHS global targets for 2013. Safety culture Ericsson works hard to increase OHS awareness among employees. In 2012, a target to roll out basic OHS training to 25% of employees was exceeded by 10%. In 2013, each region will carry out a locally tailored health and safety campaign, with progress reviewed quarterly. Regrettably, major incidents do arise. In 2012, seven workplace fatalities, one at Ericsson and six at suppliers, occurred at Ericsson operations (down from 11 in 2011), in the following risk areas: climbing and working at heights, driver and vehicle safety and construction/civil work and working at construction sites. Ericsson considers workplace fatalities unacceptable and is stepping up OHS practices to achieve its ultimate goal of zero fatal incidents. Radio waves and health Although declining in most countries, there is still some public concern that radio waves from mobile phones and base stations may cause health problems.Yet numerous science reviews by the World Health Organization (WHO) and other expert organizations conclude that electromag- netic fields at levels within the limits prescribed by public health authorities cause no adverse effects to human health. Ericsson applies stringent product testing and in- stallation procedures with the goal of ensuring that radio wave exposure levels are below established safety limits, and supports independent research into radio waves and health. For more information, visit www.ericsson.com. LEADING WITH VALUES OCCUPATIONAL HEALTH AND SAFETY Fatalities and major incidents, Ericsson operations Fatalities Major incidents 2012 2011 2012 2011 Total 1 1 20 21 North America 0 0 0 0 Latin America 0 1 19 19 Northern Europe & Central Asia 0 0 0 1 Western & Central Europe 0 0 0 0 Mediterranean 0 0 0 0 Middle East 0 0 0 0 Sub-Saharan Africa 0 0 0 0 India 1 0 1 0 China & North East Asia 0 0 0 1 South East Asia & Oceania 0 0 0 0 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 47
  • 48. objectives AND achievements Objectives and achievements As part of the sustainability strategy process, Ericsson has for several years set a series of annual objectives within the five key issue areas of our sustainability and CR performance. Progress on achievement of the annual targets is reported on pages 48-49 along with new objectives set for 2013. See our long-term objectives on page 50. Status Objectives 2012 Achievements 2012 Objectives 2013 Status Objectives 2012 Achievements 2012 Objectives 2013 Enabling communications for all Enabling a Low-Carbon Economy Status Objectives 2012 Achievements 2012 Objectives 2013 Reducing our Environmental Impact Deploy Connect To Learn in eight new schools in Millennium Villages, and extend the Connect To Learn to two additional countries. Deployed Connect To Learn in four schools due to political unrest in two countries; expanded to four additional countries. Deploy ICT in education projects to 10,000 students by 2013. Define baseline for independent monitoring and evaluation study for ICT and education. Defined baseline with data from 25 schools to serve as input to a Collaborative Action Research project with Earth Institute at Columbia University. Complete Collaborative Action Research project on ICT and education with Earth Institute at Columbia University. 150,000 refugees registered in the Refugees United database. Registered approximately 185,000 users in the Refugees United database. Increase number of refugee registrations in Refugees United database to 300,000. Support Youth Peacemaker Network and PeaceEarth Foundation with ICT tools and training in three countries. Have Ericsson mobile wallet platform ready for service in ten countries by the end of 2013 to increase financial inclusion among unbanked. 10% Ericsson carbon footprint intensity reduction measure as CO2 emissions per subscriber, including Ericsson own activities and products in operation. Reduced Ericsson carbon footprint intensity by 22% for Ericsson own activities and 16% for products in operation. The five year carbon footprint intensity target has been achieved in four years. For products in operations, in 2013 we will establish a new energy performance baseline. Reduce CO2 emissions per employee by 5% on Ericsson own activities (business travel, logistics and facilities). Reduce the number of air flight trips by 10% (baseline 2011). Reduced the number of employee air flight trips by 12%. See objective 2013 above and long-term objective. Increase outbound surface shipping to 75% using the global share of surface transport indicator by weight. Increased outbound surface shipping to 80%. See objective 2013 above and long-term objective. Reduce energy usage by 3% per head. Reduced energy usage in Ericsson offices by 3.6% per head. See objective 2013 above and long-term objective. Define an implementation plan for our next infrastructure consolidation project, including data rooms, data centers, and test labs and evaluate the measures found in the energy audits. Defined implementation plan including baseline estimates of the energy usage of our test environment labs, and PUE (Power Usage Effectiveness). See objective 2013 above and long-term objective. Achieve 4.5% of WEEE take-back vs. Equipment Put on Market (baseline 2011), while continuing to ensure less than 5% of WEEE treated by Ecology Management Program is disposed of in landfill. Achieved over 5% of WEEE take-back vs. Equipment Put on Market, while disposing less than 2% of waste in landfill. Achieve 10% of WEEE take-back vs. Equipment Put on Market, while continuing to ensure less than 5% of WEEE treated by Ecology Management Program is disposed of in landfill. Show how ICT contributes to a low-carbon economy by investigating the impact of at least five different solutions. Assessed impact of three ICT-enabled solutions for low-carbon economy: smart grid, smart work, and connected buses. Develop selected cases demonstrating the ICT-enablement potential for the low-carbon economy. Launch Broadband Commission Report on Climate Change, and support Broadband Commission Statement for Rio+20. Launched Broadband Commission Report, and A Call to Action statement from the Broadband Commission to Rio+20. Implement the new International Telecommunication Union (ITU) recommendation for greenhouse gas inventory of organizations. Implemented the main requirements for data collection, calculation and record keeping when calculating emissions. A plan to implement the remaining ITU-T L.1420 requirements is in place. Develop a platform for dialogue and knowledge sharing on ICT impact on energy in the low-carbon economy. Define broadband blueprint and assessment methodology for sustainable cities. 48 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 49. objectives AND achievements Status Objectives 2012 Achievements 2012 Objectives 2013 Conducting business responsibly Conduct annual Sustainability and Corporate Responsibility review for the Ericsson Board of Directors. Conducted the annual Sustainability and CR annual review for the Ericsson Board of Directors. Continue annual Sustainability and Corporate Responsibility review for the Ericsson Board of Directors. Update Code of Business Ethics to reflect UN Principles for Business and Human Rights Guidelines and initiate a new acknowledgement request for all employees. Updated Ericsson Code of Business Ethics to reflect UN Guiding Principles on Business and Human Rights Guidelines. Close to 100% of Ericsson employees worldwide have completed the acknowledgement process. Launch Business Learning Program on human rights with Shift. Ensure country risk-screening process fully operational and complete at least one Human Rights Impact Assessment (HRIA). Implement Environmental Audit in at least two Regions. Implemented Environmental Audits in two Regions: India and Northeast Asia. Implement expanded Environmental Audit program in at least two regions which indicate higher risk. Achieve 90% of all Strategic Sourcing personnel complete the Code of Conduct training for Suppliers. Achieved 92% completion rate for training of Regional Strategic Sourcing. Achieve 95% completion rate of Code of Conduct Training for Suppliers by Strategic Sourcing personnel. Maintain and develop the Supplier Code of Conduct Program; all Regions and Units to have auditors and risk-based audit plans updated, and perform and follow up audits according to plans to ensure continual improvement among critical suppliers. Updated risk-based audit plans in all Regions and Units, and performed and followed up audits according to plans among critical suppliers. All regions and relevant units to have Supplier Code of Conduct auditors who conduct and follow up risk based audits to ensure continual improvements. Achieve significant S-CoC performance improvements among selected suppliers audited in both 2011 and 2012. Target: Reduce the number of Critical findings by >50% from 2011 to 2012. The number of critical findings was reduced by 56% from selected suppliers audited in both 2011 and 2012. Reduce the number of critical findings by >50% among selected suppliers audited two consecutive years. Complete Supplier Code of Conduct Auditor refresher training for 100% of all Supplier Code of Conduct auditors. Arrange key supplier forum on initiatives relevant on sustainability and corporate responsibility issues. Held forum with selected suppliers to discuss energy efficiency and greenhouse gas emissions. Arrange at least four local Supplier Workshops with Code of Conduct focus. Complete update to processes and procedures around conflict minerals, including individual supplier assessments. Updated Banned and Restricted Substance list to cover conflict minerals, used both in supplier agreements and product management process. Selected suppliers were assessed using a Conflict Minerals Reporting Template developed by EICC and GeSI. Partly achieved Not achievedTarget achieved Status Objectives 2012 Achievements 2012 Objectives 2013 leading with values Expand Ericsson Technical Certification Program (ETCP) to cover more technology areas. Certification domains expanded to include IP Broadband and Core, Media and Applications, Radio Access Networks, and Solutions. Increase our commitment to technical leadership by expanding our technical certifications supported by training from 22 to 33. Expand the Employee Engagement Program as part of the wider Brand Engagement Program open to all Ericsson employees. Conducted employee engagement pilot and will continue to assess expansion in 2013. Establish diversity council and long-term goals on diversity. Launch global learning solutions which address key competence gaps critical for employee and company success. Launch a Global Employee Referral Program to further integrate our employee engagement into our ways of working and bringing exceptional talent to Ericsson. Increase employee knowledge and awareness of OHS issues: 25% of employees will take a basic OHSAS training in 2012. 35% of employees completed the basic Occupational Health and Safety e-learning. Conduct Occupational Health and Safety campaign on health aspects in each Region. Establish root cause analysis in Occupational Health and Safety incident investigations. ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 49
  • 50. Long-term Objectives Long-term Objectives Long-term Objectives Long-term Objectives Long-term Objectives Long-term Objectives Long-term Objectives Enabling communications for all Conducting business responsibly Reducing our Environmental Impact Enabling a Low-Carbon Economy Leading with values Advocacy and support for Broadband Commission for Digital Development’s 2015 targets and post 2015 development agenda. Deploy ICT in education projects to 50,000 students by 2015. Achieve one million registrations in the Refugees United database by 2015. Document connection between technology, development and peace with ICT tools and training by 2015. Be one of the key drivers to increase financial inclusion in an open financial ecosystem, and make it significantly simpler and more affordable to make a financial transaction, over a mobile device, whoever or wherever you are. Continue to regularly engage Ericsson Board in Sustainability and CR as appropriate. Complete two year Business Learning Program, on Business and Human Rights, and implement improvements. Integrate adequate human rights and CR risk measures in group management systems. No observed or reported failure by Ericsson Sourcing to fully consider Code of Conduct and Environmental compliance when evaluating and selecting suppliers by 2017. Ericsson’s supplier-related ethical and environmental risks are continually reduced. The supplier year-on-year improvement, measured as the reduction of critical findings, shall exceed 60% in 2017. Maintain 100% up to date training level for supplier code of conduct auditors. Reduce amount and severity level of Occupational Health and Safety incidents and accidents. Maintain absolute CO2 e emissions from Ericsson own activities for business travel, logistics and facilities in 2017 at the same level as 2011, supporting Company´s long-term growth ambition. Achieve 50% of WEEE take-back vs. Equipment Put on Market in 2017 while continuing to ensure less than 5% of WEEE treated by Ecology Management Program is disposed of in landfill. Deliver opportunities to address sustainable development challenges using our core business in three cities to address sustainable urbanization. Develop selected cases that show the connection between business opportunities and the low-carbon economy. Establish a globally agreed industry position around the potential of ICT for low carbon economy with key stakeholders. Reduce amount and severity level of occupational Health and Safety incidents by consistently identifying and controlling our health and safety risks, working toward our long term goal for zero fatalities. Increase employee knowledge and awareness significantly on Occupational Health and Safety. In 2012, as part of our long-term strategy to continuously improve our sustainability and CR performance, Ericsson has set long-term objectives (3-5 year) in each of our key issues areas. We will report on the progress towards these long-term objectives annually. 50 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 51. ST-Ericsson ST-Ericsson is a world leader in developing wireless platforms and semiconductors, providing smarter communication, enhanced on-the-go entertainment and mobile broadband connectivity worldwide. Established as a 50/50 joint venture of Ericsson and STMicroelectronics in February 2009, it has one of most advanced product portfolios in the industry. As a global business and thought leader, ST-Ericsson is committed to the three main areas of sustainable development: environment, society and the economy. ST-Ericsson has deployed an Environmental Management System (EMS) that enables us to improve legal com- pliance, reduce waste, energy consumption and operating costs, as well as enhance our company reputation and gain recognition. Respecting the environment ST-Ericsson implements a voluntary worldwide program aiming to minimize our environmental footprint in four main areas: CO2 foot- print, energy, paper consumption and electronic waste. Targets were set for 2020, with a 2010 baseline. • Reducing our carbon footprint by 30 to 50%: Minimize our environmental impact by reducing direct and indirect emissions. This will be done by increasing performance of our facilities, rationalizing operations, limiting business travel, and expanding use of video conference facilities and IT sharing tools. • Reduce our energy consumption by 30 to 50%: We are moving to low power generation PCs and servers and by streamlining our R&D centers. • Reduce drastically our paper consumption: We aim to be a paperless company to minimize depletion of natural resources and also reduce hazardous substances used in printing. In 2012 we reduced paper usage by 27% with use of SMART printing services (secured by pin code, double side print). • Reduce electronic waste (WEEE) in Kg/employee by 15 to 25%: Our goal is to minimize our environmental impact by promoting waste recycling or reuse and ensuring safe disposal of remaining waste. Product responsibility ST-Ericsson is actively supporting sustainable development in wireless communications by reducing the energy consumption of its products and to offer our customers the most energy-efficient products on the market. The ST-Ericsson PowerHUB™ product family for power management supports better battery life in mobile devices. In 2012, ST-Ericsson announced the CG2905, the industry’s first connectivity platform solution, which provides better power consumption. Another new product, the NovaThor™ L8540, integrates a dual-core applicationprocessor with our industry-leading LTE multimode modem, saving power consumption. We are also developing future NovaThor platforms using FD-SOI 28nm technology which will allow ST-Ericsson to produce the world’s fastest and lowest-power integrated LTE smartphone platform. FD-SOI technology eliminates the need for an electrical signal on the gate to close the transistor, which saves power. The sleep mode consumes no power consumption. In addition, FD-SOI products will enable: • Cooler operation, consuming 25% less power than rival architectures. • Low power mode that consumes 50% less power compared with alternative solutions in bulk CMOS. Moreover, ST-Ericsson is contributing to the reduction of hazardous substances. All products designed by ST-Ericsson are Ecopack®2 (lead free + free of brominated and chlorinated flame retardants) which enable us to deliver in 2012 more than 99% of products in this category. Business and Social responsibility ST-Ericsson applies the Code of Conduct promoted by the Electronic Industry Citizen Coalition (EICC). In addition to compliance with all relevant laws, regulations and standards in all of the countries in which we operate, all ST-Ericsson divisions and organizations and their employees must comply with the ST-Ericsson Code of Conduct and company policies & directives. ST-Ericsson, in general, requires suppliers and their subcontractors to comply with our Code of Conduct and the EICC and to verify compliance by providing information and allowing access to their premises. ST-Ericsson also supports the United Nations Global Compact initiative. Our Code of Conduct is based on the Global Compact’s ten principles and is made publicly available. During 2012, ST-Ericsson has supported many community initiatives. A campaign to collect old GSM phones in France resulted in hundreds of phones being collected within our sites, recycled and the benefits of second hand sales donated to the French Red Cross. Promoting economic development ST-Ericsson is one of the global leaders in high-value entry wireless platforms, providing communications and Internet access to people through affordable platforms with additional value-added features, widening the scope of handset use cases- and thus increasing business opportunities in developing countries. Presentation title Date: 2013-01-31 COMPANY CONFIDENTIAL1 (1) Active Idle 24 Hours 0% 20% 40% 60% 80% 100% 0 5 10 15 20 RemainingBattery Record 20min Call 1h Browse 1.5h Play 1h Stream 1.5h FD-SOI based Platform Bulk CMOS based Platform 5 hours More Web browsing to go ! Hours of use 1 Day Tasks Cooler Smartphone can be used for longer time NovaThor™ platform running at 1GHz with VARM supplied at 0.65V FDSOI – COOLER ST-Ericsson ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 51
  • 52. auditor’s report Auditor’s Combined Assurance Report on the Sustainability & Corporate Responsibility Report To the readers of the Ericsson Sustainability & Corporate Responsibility Report 2012 We have been engaged by the Executive Leadership Team of Telefonaktiebolaget LM Ericsson (publ) (“Ericsson”) to perform an examination of the Ericsson Sustainability & Corporate Responsibility (CR) Report for the year 2012. The Board of Directors and Executive Leadership Team are responsible for the company’s activities regarding environment, health & safety, social responsibility, and sustainable development, and for the preparation and presentation of the Sustainability & CR Report in accordance with applicable criteria. Our responsibility is to express a conclusion on the Sustainability & CR Report based on our examination. The scope of the examination We have performed the assurance engagement in accordance with RevR 6 Assurance of Sustainability Reports issued by Far (institute for the accounting profession in Sweden), as well as AA1000AS (2008) issued by AccountAbility (type 2 engagement). The objective of an audit is to obtain reasonable assurance that the information in the Sustainability & CR Report is free of material misstatements. An audit includes examining, on a test basis, evidence supporting the quantitative and qualitative information in the Sustainability & CR Report. A review is mainly limited to making inquiries of personnel responsible for sustainability issues, and applying analytical and other review procedures. Hence, the conclusion based on our review procedures does not comprise the same level of assurance as the conclusion of our audit. Since this assurance engagement is combined, our conclusions regarding the audit and the review will be presented in separate sections. Our assurance engagement includes examination of the following areas, with the purpose of either providing reasonable assurance (hereafter referred to as audit) or limited assurance (hereafter referred to as review): 1. Our review has included all pages in the Sustainability & CR Report, except page 51. 2. Our audit is limited to the carbon dioxide emissions data regarding Ericsson own activities on page 24-25. Our assurance, reasonable or limited, does not comprise the assumptions used by the company as to whether or not it is possible for the company to reach certain future targets described in the report (e.g. goals, expectations and ambitions). The criteria on which our examination is based are the parts of the Sustainability Reporting Guidelines G3, published by the Global Reporting Initiative (GRI), which are applicable to the Sustainability & CR Report, as well as the accounting and calculation principles that the company has developed and disclosed. We consider these criteria suitable for the preparation of the Sustainability & CR Report. In accordance with AA1000AS (2008), we confirm that we are independent of Ericsson. Our review has been performed by a multidisciplinary team specialized in reviewing economic, environmental and social issues in sustainability reports, and with experience from the industry Ericsson operates within. Review procedures The main procedures of our review have included the following: a. update of our knowledge and understanding of Ericsson’s organization and activities, b. assessment of the outcome of the company’s stakeholder dialogue, c. interviews with representatives of the management to ensure that Ericsson responds to important stakeholders’ concerns in the sustainability report, d. interviews with management at group level in order to assess if the qualitative and quantitative information stated in the Sustainability & CR Report is complete, accurate and sufficient, e. examination of internal and external documents in order to assess if the information stated in the Sustainability & CR Report is complete, accurate and sufficient, f. evaluation of the design of selected systems and processes used to obtain, manage and validate sustainability information, g. an evaluation of the model used to calculate carbon dioxide emissions, h. analytical procedures of the information stated in the Sustainability & CR Report, i. assessment of the company’s declared application level according to the GRI guidelines, j. assessment of the overall impression of the Sustainability & CR Report, and its format, taking into consideration the consistency of the stated information with applicable criteria, 52 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 53. Audit procedures Our audit has included the following procedures: a. evaluation of design and functionality of relevant internal controls within the systems and processes used to collect, manage and validate information on the selected indicators during the reporting period, and b. reconciliation of reported information with internal and external source documents, and performing detailed tests of the selected indicators regarding Ericsson own carbon dioxide emissions on page 24-25 in the Sustainability & CR Report. We consider the evidence collected during our examination to be sufficient and appropriate in order to support our conclusions listed below. Conclusions Our conclusion based on our review Based on our procedures performed, nothing has come to our attention that causes us to believe that the information in the Ericsson Sustainability & CR Report which has been subject to our review has not, in all material respects, been prepared in accordance with the above stated criteria and that Ericsson has not adhered to the AA1000APS (2008) principles inclusivity, materiality and responsiveness. Our conclusion based on our audit In our opinion, the information in the Ericsson Sustainability & CR Report which has been subject to our audit has, in all material respects, been prepared in accordance with the above stated criteria. Other information The following is other information that has not affected our conclusion above. According to AA1000AS (2008), we have included observations and recommendations for improvements in relation to adherence to the AA1000APS (2008) principles: Regarding inclusivity We see a strong commitment to stakeholder accountability and evidence of numerous engagement activities at corporate level. We encourage Ericsson to further develop documentation on stakeholder participation processes, and increase awareness of the AA1000APS principles throughout the organization. Regarding materiality We commend the updated process for determining material sustainability issues that Ericsson has launched during the year. We support Ericsson’s plans to further refine this process, including the criteria used to identify and select relevant issues. Regarding responsiveness We observe that Ericsson has processes in place to respond to significant stakeholder concerns, including extensive communication using various channels. We have no specific recommendations regarding responsiveness. Stockholm, April 5th 2013 PricewaterhouseCoopers AB Peter Nyllinge Fredrik Ljungdahl Authorized Public Accountant Expert Member of Far auditor’s report 000-150 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 53
  • 54. memberships and affiliations Memberships and Affiliations Broadband Commission for Digital Development The Broadband Commission for Digital Development was launched in 2010 by the International Telecommunications Union (ITU) and the United Nations Edu- cational, Scientific and Cultural Organiza- tion (UNESCO). Ericsson is a founding member of the Broadband Commission and CEO Hans Vestberg is a Commission- er and leads the Climate Change working group. www.broadbandcommission.org Business Call to Action – UNDP Ericsson is a member of Business Call to Action (BCtA), which aims to accelerate progress toward the Millennium Develop- ment Goals by challenging companies to develop inclusive business models that offer potential for commercial success and development impact. www.businesscalltoaction.org Clinton Global Initiative The Clinton Global Initiative (CGI) convenes global leaders to devise and implement innovative solutions to some of the world’s most pressing challenges. CGI gathers government officials, busi- ness leaders, and non-profit directors for collaboration, sharing ideas, and forging partnerships. Members devise practical solutions to global issues through specific and measurable Commitments to Action. www.clintonglobalinitiative.org European Roundtable of Industrialists This forum brings together around 50 Chief Executives and Chairmen of major multinational companies of European parentage covering many industrial and technological sectors. As member, Erics- son signed a voluntary target to increase the number of women in decision-making roles and is also in the Energy and Cli- mate Change Working Group. Global E-sustainability initiative (GeSI) Ericsson is a founding member of the Global e-Sustainability Initiative (GeSI), represented on the Board of Directors and co-chair of the Public Policy Work Group. GeSI aims to create an open and global forum for the improvement and promotion of products, services and access to ICT to benefit society and the environment. Sustainable sourcing and climate change are key issues on the agenda. www.gesi.org New Cities Foundation The New Cities Foundation is a non-profit Swiss institution founded in 2010 and dedicated to improving the quality of life and work in the 21st-century global city, with a particular focus on new cities in Asia, the Middle East, Latin America and Africa. NCF sees cities as humanity’s most important source of innovation, cre- ativity and wealth-creation. NCF believes that achieving the vision of building more sustainable and dynamic urban communi- ties can only be done through innovative partnership. NCF serves a unique role in developing new models of collaboration between the public, private and academic sectors. Ericsson is a founding member of the New Cities Foundation. www.newcitiesfoundation.org Symbio City SymbioCity is a network of Swedish com- panies and organizations. It was founded on the initiative of the Swedish Govern- ment and Swedish Industry. SymbioCity is administrated by The Swedish Trade Council, with offices in more than 60 countries around the world. The head- quarters is situated in Stockholm. www.symbiocity.org United Nations Global Compact In 2012 we reported according to GC Ad- vanced level. Ericsson was one of the first signatories of the UN Global Compact. www.unglobalcompact.org UN Sustainable Solutions Development Network The network was formed in 2012 to mobilize scientific and technical exper- tise from academia, civil society, and the private sector to support sustainable- development problem solving at local, national, and global scales. Ericsson CEO Hans Vestberg is part of the Leadership Council. www.unsdsn.org AWARDS and recognition Global 100 Most Sustainable Corporations in the World Ericsson is ranked No 30 on the 2013 Global100 list announced at the World Economic Forum in Davos in January 2013. The Global 100 is an annual project initiated by Corporate Knights, the com- pany for clean capitalism. FTSE4Good FTSE Group confirms that Ericsson has been independently assessed accord- ing to the FTSE4Good criteria, and has satisfied the requirements to become a constituent of the FTSE4Good Index Series, an equity index series designed to facilitate investment in companies that meet globally recognized corporate responsibility standards. GSMA Global Mobile Award The Amazon Connection program won the 2013 Global Mobile Award Best Mobile Product, Initiative or Service for for Emerging Markets at Mobile World Congress. The program is a partner- ship between Ericsson, mobile operator Telefonica|Vivo and the non-profit Saude and Alegria. Lundquist CSR Online Awards Ericsson was the to-ranked company in the Nordic competition of the CSR Online Awards Nordic 2012. The award assesses how the region’s biggest companies are communicating corporate responsibil- ity online and their ability to engage with stakeholders through the corporate website. Miljörapporten The Swedish environmental magazine MiljöRapporten, together with an external unanimous jury, ranked the Ericsson 2011 Sustainability & Corporate Responsibil- ity Report first among reports among 54 companies on the OMX Stockholm Large Cap list. Evaluation criteria were: overall impression; accessibility; long- term approach; the business advantage of sustainability; and credibility. Ericsson was recognized for its comprehensive approach, linking operations to solutions to the global sustainability challenges most relevant to the business. 54 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  • 55. The carbon footprint of an average ICT user is estimated to decrease 20% between 2007 and 2020… …so we are designing products and solutions to make this happen… We are reducing our environmental impact throughout our value chain. Ericsson’s Psi Ψ 3G coverage solution reduces power consumption by up to 40% The Antenna-Integrated Radio (AIR) cuts energy consumption by 40% By 2017, 85% of the world’s population will have access to mobile-broadband coverage via 3G networks Ericsson increased its video conference rooms globally by 60% in 2012, contributing to the reduction of CO2e emissions per employee 34% of our global facilities use certified green electricity and 74% at measured European facilities …and reducing carbon emissions in our own operations. reducing our environmental impact In Sweden, we have used 100% certified green electricity since 2008 …finding smarter ways of working… enabling a low-carbon economy The ICT sector contributes about 2% of global CO2e emissions, but can help eliminate a significant portion of the remaining 98% from other industries. ICT solutions will enable the low-carbon economy of the future… …and will transform industries and cities. By 2050, 70% of the global population will reside in an urban area or city. Stockholm Royal Seaport is an ICT-enabled city district that will be climate-positive by 2030 ICT 2% Waste 3% Forestry 17% Agriculture 14% Energy supply 26% Buildings 8% Industry 19% Transport & travel 13% The CO2e from an annual mobile subscription is equal to driving a car for about 1.5 hours Source: Ericsson and TeliaSonera, 2012 The SMARTer 2020 study estimates that ICT-enabled solutions could reduce global CO2e emissions by 16.5% in 2020 Source: GeSI Source: UN HABITAT Smart grids can help address 67% of the energy lost due to inefficiencies before reaching the consumer ICT 2% A 2012 study of eight ICT-related services in six countries showed they could produce energy savings of 373 million barrels of oil equivalents per year 373million Source: Ernest Orlando Lawrence Berkeley National Laboratory and GeSI Source: Stockholm Royal Seaport Innovation Center Source: EricssonSource: Ericsson ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 55
  • 56. Telefonaktiebolaget LM Ericsson SE-164 83 Stockholm, Sweden www.ericsson.com Concept and editorial production: Ericsson Sustainability and Corporate Responsibility Unit together with One Stone Advisors Ltd. Design and production: Xerox Mediacenter Published: April 2013 © Telefonaktiebolaget LM Ericsson 2013 FSC Symbol