Disclos 2016-04-04 - Ericsson · Strategy CC2.1 Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities

Climate Change 2015 Information RequestEricsson

Module: Introduction

Page: Introduction

CC0.1IntroductionPlease give a general description and introduction to your organization.

Ericsson is a world's leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us to study, work and live our lives more freely, in sustainable societies around the world. Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries.

With more than 115,000 professionals and customers in more than 180 countries, Ericsson combinesglobal scale with technology and services leadership. Investments in research and development ensure that Ericsson’s solutions – and its customers – stay in the forefront. The Company provides support for networks with more than 2.5 billion subscribers. Approximately 40% of the world’s mobile traffic is carried through networks delivered by Ericsson.

Founded in 1876, Ericsson, with HQ in Stockholm, Sweden, had a 2014 revenue of SEK 228 billion. Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.

For further details see attachment: Ericsson-Annual-Report-2014-en.pdfFor more information please visit www.ericsson.com

CC0.2Reporting YearPlease state the start and end date of the year for which you are reporting data.The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first.We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year.Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001).

Enter Periods that will be disclosed

Wed 01 Jan 2014 - Wed 31 Dec 2014

CC0.3Country list configuration

Please select the countries for which you will be supplying data. If you are responding to the Electric Utilities module, this selection will be carried forward to assist you in completing your response.

Select countrySweden

GermanyUnited KingdomUnited States of America

ChinaMexico

BrazilItalySpain

IndiaRest of world

Canada

CC0.4Currency selection

Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency.

SEK

CC0.6Modules As part of the request for information on behalf of investors, electric utilities, companies with electric utility activities or assets, companies in the automobile or auto component manufacture sub-industries, companies in the oil and gas sub-industries, companies in the information technology and telecommunications sectors and companies in the food, beverage and tobacco industry group should complete supplementary questions in addition to the main questionnaire. If you are in these sector groupings (according to the Global Industry Classification Standard (GICS)), the corresponding sector modules will not appear below but will automatically appear in the navigation bar when you save this page. If you want to query your classification, please email [email protected]. If you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below. If you wish to view the questions first, please see https://www.cdp.net/en-US/Programmes/Pages/More-questionnaires.aspx.

Further Information

Please for more information about Ericsson 2014 performance read Ericsson Annual Report: http://www.ericsson.com/res/investors/docs/2014/ericsson-annual-report-2014-en.pdf

Attachments

https://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC0.Introduction/Ericsson-Annual-Report-2014-en.pdf

Module: Management

Page: CC1. Governance

CC1.1Where is the highest level of direct responsibility for climate change within your organization?

Page 1 of 33Climate Change 2015 Information Request - Ericsson

2016-04-04https://www.cdp.net/sites/2015/11/5811/Climate%20Change%202015/Pages/Disclos...

Board or individual/sub-set of the Board or other committee appointed by the Board

CC1.1aPlease identify the position of the individual or name of the committee with this responsibility

Sustainability and Corporate Responsibility Vice President, member of Ericsson’s Global Leadership Team and reporting to President and CEO.

See Ericsson organization attached document called Ericsson-organization-2015-january.pdf

The Ericsson Sustainability and Corporate Responsibility (CR) Steering Group, comprised of several members of Ericsson Executive Leadership Team (See Ericsson Annual Report 2014 (Pages 152-155)) and senior executives, aligns sustainability and CR work with Ericsson and approves the Ericsson Sustainability and CR strategy, objectives and targets, including climate change issues.

CC1.2Do you provide incentives for the management of climate change issues, including the attainment of targets?

Yes

CC1.2aPlease provide further details on the incentives provided for the management of climate change issues

Who is entitled to benefit from these

incentives?

The type of incentives

Incentivized performance

indicatorComment

Environment/Sustainability managers

Monetary reward

Emissions reduction targetEfficiency target

Ericsson own activities - Carbon footprint intensity reduction target is part of Ericsson Group Balanced Scorecard (BSC). Climate change issues are part of Short-Term Variable remuneration (STV) for 2014 for selected Environmental/Sustainability managers. Ericsson has a long-term objective to maintain absolute CO2e emissions from its own activities for business travel, product transportation and facilities energy use in 2017 at the same level as in 2011. To achieve this long-term objective, the Company aims to reduce CO2e emissions per employee by 30% over five years. The Company achieved a 10% reduction of CO2e emissions per employee in 2014.

Executive officerMonetary reward

Emissions reduction targetEfficiency target

Ericsson own activities - Carbon footprint intensity reduction target is part of Ericsson Group Balanced Scorecard (BSC). Climate change issues are part of Short-Term Variable remuneration (STV) for 2014 for selected Environmental/Sustainability managers. Ericsson has a long-term objective to maintain absolute CO2e emissions from its own activities for business travel, product transportation and facilities energy use in 2017 at the same level as in 2011. To achieve this long-term objective, the Company aims to reduce CO2e emissions per employee by 30% over five years. The Company achieved a 10% reduction of CO2e emissions per employee in 2014.

Further Information

For more information please see Ericsson Annual report 2014: CEO letter (Page 6) and Sustainability and CR (Page 38) Please see Ericsson organization: http://www.ericsson.com/res/thecompany/docs/comp_facts/ericsson-organization-2015-january.pdf

Attachments

https://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC1.Governance/Ericsson-organization-2015-january.pdfhttps://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC1.Governance/Ericsson-Annual-Report-2014-en.pdf

Page: CC2. Strategy

CC2.1Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities

Integrated into multi-disciplinary company wide risk management processes

CC2.1aPlease provide further details on your risk management procedures with regard to climate change risks and opportunities

Frequency of monitoring

To whom are results reported?

Geographical areas considered

How far into the future are risks

considered?Comment

Six-monthly or more frequently

Board or individual/sub-set of the Board or committee appointed by the Board

Ericsson’s risk management applies universally across all business activities, serving customer in over 180 countries.

> 6 years

Risks are reviewed by the Ericsson Board of Directors, at least twice a year, in connection with the approval of strategy and targets. Climate Change is part of the Risk framework, therefore is analyzed in during Risk management.

CC2.1bPlease describe how your risk and opportunity identification processes are applied at both company and asset level

Risks are defined in both short-term (1-2 years) and long-term (5 years) perspective. They are categorized into industry and market risks, commercial risks, operational risks and compliance risks. Energy and climate change is one of the categories under operational risks.

Ericsson’s risk management is based on the following principles, which apply universally across all business activities and risk types:

1.- Risk management is an integrated part of the Ericsson Group Management System.2.- Each operational unit is accountable for owning and managing its risks according to policies, directives and process tools. Decisions are made or escalated according to defined delegation of authority. Financial risks are coordinated through Group Function Finance.3.- Risks are dealt with during the strategy process, annual planning and target setting, continuous monitoring through monthly and quarterly steering group meetings and during operational processes (customer projects, customer bid/contract, acquisition, investment and product development projects). They are subject to various controls such as decision tollgates and approvals.

At least twice a year, in connection with the approval of strategy and targets, risks are reviewed by the Board of Directors.

A central security unit coordinates management of certain risks, such as business interruption, information security and physical security. The Crisis Management Council deals with events of a serious nature.

Opportunities are identified in the sustainability strategy development process and included in the strategy as well as integrated into the business development process.

For more information about risk and opportunities management, please see Ericsson Annual Report 2014 (Page 49) as well as The Board’s annual work cycle 2014 (Page 138)

CC2.1c



How do you prioritize the risks and opportunities identified?

Risk and opportunities are prioritized based on a matrix that assess the probability and impact of the risk and opportunity. Risks and opportunities are plotted in this matrix and as result they are prioritized.

Mitigation and adaptation measurements are define as the risk response by all organizations that are requested to do Risk assessments, including Regions, Business Units and Group Functions.

CC2.2Is climate change integrated into your business strategy?

Yes

CC2.2aPlease describe the process of how climate change is integrated into your business strategy and any outcomes of this process

i) In our strategy process we collect information during the Situation Analysis phase. Information from external and internal sources is collected via our external and internal business intelligence network, from academia, business units, customers, suppliers, regulators network (external and internal) and other stakeholders such as partners. This information is analyzed. As part of the internal information used in the strategy process the target follow-up is taken into account. Strategy process is linked to target (Short and Long term targets) and risk.

ii) The aspects of climate change that have influenced the strategy, are mitigation business opportunities, adaptation needs, regulatory changes. We aim to minimize the negative environmental impacts of our activities and products in operation, while delivering solutions to enable the low-carbon economy. Improve performance of our own operations and Demonstrate ICT and low-carbon benefits are part of the Ericsson Strategyes (See Page 6 Sustainability and CR Report 2014)

iii) The most important components of the short term strategy (1-2 years) that have been influenced by climate change is our customers need to reduce energy consumption and carbon emissions.

iv) The most important components of the long term strategy (5 years) are the business opportunities due to that our customers need to reduce energy consumption and carbon emissions for themselves and for their customers.

v) By providing our customers with leading energy and carbon expertise we can support our customers in a tailored way. For example, the strategy has been influenced to shift the focus primarily on improving the energy performance of the ‘box’, to evolve and encompass all areas of the network.

vi) To focus on customer needs to reduce mobile networks more energy efficient, including energy consumption, hence reducing carbon emissions.

CC2.2cDoes your company use an internal price of carbon?

No, and we currently don't anticipate doing so in the next 2 years

CC2.3Do you engage in activities that could either directly or indirectly influence public policy on climate change through any of the following? (tick all that apply)

Direct engagement with policy makersTrade associationsFunding research organizationsOther

CC2.3aOn what issues have you been engaging directly with policy makers?

Focus of legislation

Corporate Position

Details of engagement Proposed legislative solution

Energy efficiency

Support

In the ICT industry, global standards are fundamental to ubiquitous connectivity. Globally standardized technologies ensure worldwide interoperability between networks, devices, and network operators. Ericsson is uniquely positioned as a leader in the development of standards for all major mobile and fixed communication systems, and the convergence of these systems. Our active participation and leadership in global standardization organizations, and our commitment to open and innovative technology standards, enable us to play a key role in shaping standards for future technologies. This position also underscores our role in important areas such as environmental assessment and energy efficiency. Standards positively support policies – e.g. related to climate change – by translating political goals into technical terms, and developing agreed measurement or assessment methodologies . Ericsson is participating in standarization organizations such as: IEEE Institute of Electrical and Electronics Engineers. The IEEE Standards Association is an organization that develops and advances specifications for global technologies, areas ranging from computing and sustainable energy systems, to aerospace, communications, robotics and healthcare. Ericsson participates in ETSI - European Telecommunications Standards Institute. ETSI produces globally-applicable ICT standards, including fixed, mobile, radio, converged, broadcast and internet technologies, and in ITU - International Telecommunication Union. ITU is the United Nations’ specialized agency for ICT. ITU allocates global radio spectrum and satellite orbits, develops the technical standards that ensure networks and technologies seamlessly interconnect, and strives to improve access to ICTs to underserved communities worldwide.

Open and innovative technology standards

Adaptation resiliency

SupportWe engaged with World Meteorology Organization and developed the Mobile Weather info for all application.

Mobile Weather info for all

Other: Low-Carbon Economy

Support

Within the Broadband commission, our CEO headed the working group on Climate change. I TU and UNESCO set up the Broadband Commission for Digital Development in response to UN Secretary-General Ban Ki-Moon's call to step up UN efforts to meet the Millennium Development Goals (MDGs).

ICT should be part of the national broadband plans and one of the acknowledged UNFCCC solutions since ICT can reduce CO2 16,5 % of emissions in the world.


Support

Ericsson was sponsor and main contributor of the Global e-Sustainability Initiative (GeSI, ICT industry organization) report SMARTer2020. See CDP attachment SMARTer 2020 - The Role of ICT in Driving a Sustainable Future - December.pdf The SMARTer2020 report was launched at COP19 in Doha, Qatar by GeSI. Ericsson was part of the launch.

ICT should be part of the national broadband plans and one of the acknowledged UNFCCC solutions since ICT can reduce CO2 16,5 % of emissions in the world (See Smarter2020 Report by GeSI)



Focus of legislation

Corporate Position Details of engagement Proposed legislative solution


Support UN Sustainable Development Solutions Network was formed in 2012 to mobilize scientific and technical expertise 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 The SDSN contributed actively to the work of Open Working Group (OWG), via our flagship reports The Action Agenda and Indicators and a Monitoring Framework for the SDG, by submitting briefs and evidence papers, and by participating in OWG expert sessions and side events.

SDSN has put forward a number of proposed ICT indicators to support the proposed SDG goals and Ericsson has been involved in formulating these indicators.


Support

A three-year collaboration between Ericsson and UN-Habitat on sustainable urbanization is underway. We will conduct collaborative research and specific projects which aim to provide valuable insights for city leaders and policy makers on sustainable urbanization.

In 2014, the second year of the partnership, Ericsson and UN-Habitat conducted a social impact assessment of a new approach to address water quality, availability and affordability in Nairobi, Kenya.


Support

Open Letter from Global CEOs to World Leaders Urging Concrete Climate Action. This coalition, comprising 43 CEOs from companies with operations in over 150 countries and territories, and facilitated by the World Economic Forum, believes the private sector has a responsibility to actively engage in global efforts to reduce greenhouse gas (GHG) emissions, and to help lead the global transition to a low-carbon, climate-resilient economy. This coalition further seeks to catalyze and aggregate action and initiatives from companies from all industry sectors — towards delivering concrete climate solutions and innovations in their practices, operations and policies.

Ericsson CEO is one of the 43 signatories of the open letter with the following commitments • Taking voluntary actions to reduce environmental and carbon footprints, setting targets to reduce our own GHG gas emissions and/or energy consumption while also collaborating in supply chains and at sectoral levels. Technological innovations will be an important element. • Act as ambassadors for climate action, focusing on solutions and economic opportunities and using “the science debate is over: climate change is real and addressable” * as one of the common themes to raise public awareness. • Actively manage climate risks and incorporate them in decision making — not least to realize growth opportunities. We will take steps to implement effective strategies to strengthen not only our companies’ but also societal resilience. And vision supporting a climate deal • We believe that effective climate policies have to include explicit or implicit prices on carbon achieved via market mechanisms or coherent legislative measures according to national preferences, which will trigger low-carbon investment and transform current emission patterns at a significant scale. We support global mitigation approaches that promote cost effective incentives for cutting emissions, while respecting level playing fields and preventing carbon leakage. • We urge a strategic action agenda — supported by clear and consistent policies and robust monitoring, reporting and verification (MRV) — that will complement business efforts to stimulate innovation as well as collaborative actions across value chains, and to develop and scale up alternative and renewable energy sources, promote energy efficiency, end deforestation and accelerate other low-carbon options and technologies such as ICT. • We welcome transparency and disclosure regarding financial investments and policies in relation to all energy-related activities — including fossil-based and alternative. We support assessments of resilience to climate risks and call for new financial instruments to stimulate alternative energy and efficiency projects as well as green bonds. This will enable climate action to be integrated with financial reporting and instruments. • We encourage governments to set science-based global and national targets for the reduction of GHG emissions and the development of alternative energy sources.

CC2.3bAre you on the Board of any trade associations or provide funding beyond membership?

Yes

CC2.3cPlease enter the details of those trade associations that are likely to take a position on climate change legislation

Trade association

Is your position on

climate change

consistent with theirs?

Please explain the trade association's position

How have you, or are you attempting

to, influence the position?

GeSI Global e-Sustainability Initiative

Consistent

GeSI (Global e-Sustainability Initiative) aims to fulfil four major objectives: 1) Raise awareness of ICTs and related technologies' role in addressing the causes and effects of climate change; 2) Showcase innovative initiatives being undertaken by the ICT sector in the interests of environmental sustainability, and promote the exchange of best practices between the public and private sectors; 3) Mobilize political will to better reflect the role of ICTs in the outcomes produced by the major conferences on climate change and sustainable development; 4) Encourage governments to include ICTs and related technologies as key elements of their national climate change policies, across all industry sectors. By bolstering collaboration on these main objectives, GeSI seeks to synergize the messages being expressed by actors in the ICT field; the message that ICTs can enable low-carbon economies, and that 21st century governments, regulators and businesses cannot afford to exclude ICTs from policy or business initiatives to green our global economy. GeSI communicates with policymakers and key stakeholders to explain the significant contribution that ICT can play in addressing climate change globally and facilitating low-carbon development. GeSI wants the contribution of ICT to be recognised and integrated in government policies to achieve sustainability goals – at national, regional and global level. Our role is to inform policymakers about ICT and climate change, to drive the sustainability debate and participate in joint initiatives. In this regard it should be stressed the three year cooperation with the United Nations Framework Convention on Climate Change -Momentum for Change ICT pillar.

We have been working proactively in GeSI workgroups and projects since we as a founder member join GeSI. For example by providing cases that demonstrate the potential abatement effect of ICT Solutions in other industries in Smarter2020 Report.

UN Sustainable Development Solutions Network

Consistent

The SDSN is leading, with the French Institute for Sustainable Development and International Relations (IDDRI), the Deep Decarbonization Pathways Project (DDPP). The DDPP is a collaborative initiative to understand and show how individual countries can transition to a low-carbon economy and how the world can meet the internationally agreed target of limiting the increase in global mean surface temperature to less than 2 degrees Celsius. Currently, the DDPP comprises 15 Country Research Partners composed of leading researchers and research institutions from countries representing 70% of GHG emissions and at very different stages of development.

SDSN has put forward a number of proposed ICT indicators to support the proposed SDG goals and Ericsson has been involved in formulating these indicators. Ericsson CEO Hans Vestberg is part of the Leadership Council The SDSN.

CC2.3dDo you publicly disclose a list of all the research organizations that you fund?

Yes



CC2.3eDo you fund any research organizations to produce or disseminate public work on climate change?

Yes

CC2.3fPlease describe the work and how it aligns with your own strategy on climate change

Climate change remains a critical concern and Ericsson is active in promoting ICT’s role to provide solutions, including global climate change negotiations. Ericsson is a member of the Advisory Board of the UN Framework Convention on Climate Change (UNFCCC) Momentum for Change initiative, which aims to shine a light on some of the best examples of climate solutions – to inspire increased climate action around the world. ICT was chosen as a new focus area in 2013.

The Centre for Sustainable Communications (CESC) is an interdisciplinary research environment, situated at the main campus of the KTH Royal Institute of Technology in Stockholm, Sweden. It provides a forum for knowledge exchange and collaboration between industry, the public sector and research. Together with its partners, CESC conducts innovative research on ICT for sustainability aiming to contribute to a change of society in a sustainable direction. This aligns with our strategy on low carbon economy and increasing socio-economic development.

CC2.3gPlease provide details of the other engagement activities that you undertake

Our CEO is part of the Sustainable Development Solutions Network (SDSN) Leadership council. The UN Secretary-General announced the launch of the United Nations Sustainable Development Solutions Network (SDSN) on August 9, 2012. The Solutions Network mobilizes scientific and technical expertise from academia, civil society, and the private sector in support of sustainable-development problem solving at local, national, and global scales.

The Broadband Commission for Digital Development, a public-private initiative, seeks to highlight broadband’s role in achieving the Millennium Development Goals. The Working Group on Sustainable Development of the Broadband Commission for Digital Development, chaired by Ericsson President and CEO Hans Vestberg, published a new report in 2014 highlighting ICT’s role in proposed new Sustainable Development Goals.

Global e-Sustainability, GeSI membership. Ericsson is in the board and active in projects around climate change such as SMARTer2020 report.

Ericsson has a three year partnership with UN-Habitat on sustainable urbanization

CC2.3hWhat processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy?

Coordination between strategies and external policy influencing is ensured through steering groups as well as global networks involving those responsible for governmental contacts.

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 and secured consistency with our overall climate change strategy

Annual targets and long-term objectives support our policy and commitment. Quarterly reports of direct and indirect activities that influence in the target achivement are share with relevant owners and drivers to ensure that the activities are consistent. Organizations with delegated responibilities that can inpact Ericsson environmental performance are to report on a monthly basis.

Each year, we report on a range of objectives and achievements within our most material issues, where climate change is one of the most material issues

CC2.4Would your organization's board of directors support an international agreement between governments on climate change, which seeks to limit global temperature rise to under two degree Celsius from pre-industrial levels in line with IPCC scenarios such as RCP2.6?

Yes

CC2.4aPlease describe your board's position on what an effective agreement would mean for your organization and activities that you are undertaking to help deliver this agreement at the 2015 United Nations Climate Change Conference in Paris (COP 21)

Ericsson CEO sign "Open Letter from Global CEOs to World Leaders Urging Concrete Climate Action". This coalition, comprising 43 CEOs from companies with operations in over 150 countries and territories, and facilitated by the World Economic Forum, believes the private sector has a responsibility to actively engage in global efforts to reduce greenhouse gas (GHG) emissions, and to help lead the global transition to a low-carbon, climate-resilient economy. This coalition further seeks to catalyze and aggregate action and initiatives from companies from all industry sectors — towards delivering concrete climate solutions and innovations in their practices, operations and policies. Please see attachment "Open Letter from Global CEOs to World Leaders Urging Concrete Climate Action".

Ericsson CEO sign "It is Time to Act: 2 Degrees is the Limit", a calli to world leaders to take urgent action on climate change to limit global warming to less than 2 degrees centigrade. Some of the world’s leading thinkers and practitioners have signed this statement. The message was presented to world leaders on the occasion of the Climate Leaders’ Summit, convened by UN Secretary-General Ban Ki Moon at the United Nations, New York City, on September 23, 2014.

Further Information

Attachments

https://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC2.Strategy/Ericsson Sustainability and CR Report_2014-en.pdfhttps://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC2.Strategy/Means of Transformation - harnessing broadband for the post-2015 development agenda.pdfhttps://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC2.Strategy/Open Letter from Global CEOs to World Leaders Urging Concrete Climate Action — Medium.mhthttps://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC2.Strategy/Sustainable Development Solutions Network - So It is Time to Act 2 Degrees is the Limit - Ericsson CEO signatory (Page 5).pdfhttps://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC2.Strategy/Transformative Solutions for 2015 and Beyond.pdfhttps://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC2.Strategy/Ericsson-Annual-Report-2014-en.pdf

Page: CC3. Targets and Initiatives

CC3.1Did you have an emissions reduction target that was active (ongoing or reached completion) in the reporting year?

Absolute and intensity targets

CC3.1aPlease provide details of your absolute target



ID Scope% of

emissions in scope

% reduction from base

year

Base year

Base year emissions

(metric tonnes CO2e)

Target year

Comment

Abs1

Other: Scope 1 + Scope 2 + Scope 3: (Transportation and distribution (Downstream and upstream) and business travel)

100% 0% 2011 783600 2017

Ericsson set a long-term objective for its own operations in 2012, which is to maintain absolute CO2e emissions from Ericsson’s own activities, including business travel (Scope 3), product transportation (Scope 3) and facilities energy use (Scope 1 and Scope 2) in 2017 at the same level as in 2011 (See Ericsson-Annual-Report-2013-en.pdf (Page 45)). This Long term target is followed annually via annual targets, see Ericsson-Annual-Report-2014-en.pdf (Page 51).

CC3.1bPlease provide details of your intensity target

ID Scope% of

emissions in scope

% reduction from base

year

MetricBase year

Normalized base year emissions

Target year Comment

Int1

Other: Scope 1 + Scope 2 + Scope 3: (Transportation and distribution (Downstream and upstream) and business travel)

100% 30%

metric tonnes CO2e per FTE employee

2011 6.2 2017

The Company aims to reduce CO2e emissions per employee by 30% over five years, including Ericsson’s own activities, including business travel (Scope 3), product transportation (Scope 3) and facilities energy use (Scope 1 and Scope 2). This Long term target is followed annually via annual targets, see Ericsson-Annual-Report-2014-en.pdf (Page 51).

CC3.1cPlease also indicate what change in absolute emissions this intensity target reflects

ID

Direction of change anticipated in

absolute Scope 1+2 emissions at target

completion?

% change anticipated in

absolute Scope 1+2 emissions

Direction of change anticipated in

absolute Scope 3 emissions at target

completion?

% change anticipated in

absolute Scope 3 emissions

Comment

Int1 No change 0 No change 0

Ericsson set a long-term objective for its own operations in 2012, which is to maintain absolute CO2e emissions from Ericsson’s own activities, including business travel (Scope 3), product transportation (Scope 3) and facilities energy use (Scope 1 and Scope 2) in 2017 at the same level as in 2011 (See Ericsson-Annual-Report-2013-en.pdf (Page 45)). This Long term target is followed annually via annual targets, see Ericsson-Annual-Report-2014-en.pdf (Page 51).

CC3.1dFor all of your targets, please provide details on the progress made in the reporting year

ID% complete

(time)% complete (emissions)

Comment

Abs1 40% 100% We have achieved A 23,5% reduction, from 818 Ktonne CO2e to 626 Ktonne CO2e

Int1 40% 74%

We have achieved approximately a 22.3 % which represent approximately 74.3%. Reduction from 7.94 tonne per employee (2011) to 5.43 Tonne per employee (2014), this would represent a 31% reduction in CO2e per employee compared to baseline (2011). The goal up to 2017 was to reduce 30%, excluding 2012 impact (Which was not included into the target).

CC3.2Does the use of your goods and/or services directly enable GHG emissions to be avoided by a third party?

Yes

CC3.2aPlease provide details of how the use of your goods and/or services directly enable GHG emissions to be avoided by a third party

i) Ericsson is helping its customer to reduce the energy consumption of their networks, this reductions affect both Scope 1 and Scope 2. For example, shifting from always on to always available, there are many Radio specific energy-saving features for 2G, 3G, 4G, giving operator the potential to reduce energy consumption in existing radio equipment up to 25%. For example BCCH Power Saving (GSM), see Turkcell case Ericsson Sustainability and CR report (Page 30) for additional description

ii) Scope 1:Ericsson's hybrid energy solution reduces energy consumption. Ericsson's hybrid energy solution for diesel and batteries significantly reduces energy consumption in mobile networks outside the electricity grid. A typical site consumes approximately 20,000 liters of diesel annually and this solution reduces the need for fuel by 50 percent. With additional savings resulting from fewer fuel deliveries being made and from less maintenance being carried out, the total cost of ownership per site is lowered still further.

Non operator customers are also reducing their Scope 1 emissions with the services and products provided by Ericsson. Curitiba, one of Brazil’s largest cities, is now transforming its BRT system by embedding mobile-broadband modules in city buses and bus stops connecting them directly to an HSPA network, solution provided by Ericsson. The ICT portion of the BRT system adds about 500 tonnes of CO2e per year. If the bus operation can be made 1 percent more efficient in terms of fuel use (and CO2e), the potential direct CO2e savings would be about 2,000 tonnes of CO2e per year or 2,300 tonnes of CO2e per year if also considering embodied emissions, this is reducing Scope 1 emissions on Curitiba public transportation system. This will far exceed the amount of CO2e that is added as a result of ICT-enabled efficiency measures. Furthermore, if car travel can be reduced by only 0.1 percent, the potential related direct reduction of CO2e would be about 1,500 tonnes per year or about 1,800 tonnes of CO2e if embodied fuel-supply emissions were also considered.

Scope 2:Ericsson smart meter solutions. The results show that the total annual impact per customer – for one meter per household – is about 65kg of CO2e. Of this amount, electricity use during operation accounts for 80 percent, or about 53kg CO2e. The remaining 20 percent is caused by manufacturing and installation The solution shows that a positive net effect on emissions is achieved already at around 1 percent energy savings in the home, reducing Scope 2 emissions in the home (1 percent corresponds to a savings potential of about 80kg of CO2e). The following components are included in the system: smart meters, an LTE radio-access network (RAN), an LTE core network, and a dedicated data center. A single smart meter is installed in each household. The smart meter includes a new meter,a communication modem and a remotely operated switch. The private LTE RAN applicable for this case includes an RBS site with radio units, digital units, antennas, peripherals and a cabinet. New antenna towers have been included for half of the RBS sites based on the background consumption. In addition, the related LTE core network includes the servers and mechanics used to house the Evolved Packet Core that handles the LTE air interface. The data center houses the servers, mechanics and peripherals used specifically to support the application layer of the smart metering infrastructure.

iii)



Ericsson carbon footprint intensity for products in operation (See Ericsson Life Cycle Assessment in Ericsson Sustainability and Corporate Responsibility Report 2014) achieve 47% reduction since the target was set in 2009. The emission reduction due to these improvements is very difficult to estimate as it depends on the energy used by the operators.

Another example to illustrate the amount of emissions reductions estimations is Ericsson Ψ (Psi) Coverage: a solution that provides mobile broadband (3G) coverage. This solution reduce power consumption by up to40% compared to earlier installations with same coverage; this translates into a 240 W power saving per site or 550 liters of diesel saved annually, This represent approximately 1430 Kg CO2e per site per year.

The method used is based on the following standards: the European Telecommunications Standards Institute (ETSI) standard ETSI EE TS 103 199 Life Cycle Assessment (LCA) of ICT equipment, network and services; General methodologyand common requirements and the International Telecommunication Union (ITU) Recommendation L.1410 Methodology for the assessment of the environmental impact of information and communication technologygoods, networks and services.

We are not considering generating CERs or ERUs within the framework of CDM or JI (UNFCCC).

CC3.3Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and/or implementation phases)

Yes

CC3.3aPlease identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings

Stage of development Number of projects Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)Under investigation 1To be implemented* 1 2700Implementation commenced* 12 100000

Implemented* 4 100000Not to be implemented

CC3.3bFor those initiatives implemented in the reporting year, please provide details in the table below

Activity type

Description of activity

Estimated annual CO2e

savings (metric tonnes CO2e)

ScopeVoluntary/ Mandatory

Annual monetary savings

(unit currency -

as specified in CC0.4)

Investment required

(unit currency -

as specified in

CC0.4)

Payback period

Estimated lifetime of

the initiative

Comment

Energy efficiency: Building services

To minimize Ericsson environmental impact and 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. During 2014, the green building-rated area for Ericsson was around 10% compared to 5% at year-end 2012. We are also implementing more flexible ways of working, including ‘free seating’, teamwork workspaces and greater use of video-conferencing.

7300

Scope 1Scope 2

Voluntary 12000000 5000000 <1 year >30 years

High environmental performance buildings. Building lifetime is estimated over 50 yr. 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. During 2013, the green building-rated area for Ericsson had increased to 9.6% compared to 5% at year-end 2012.

Low carbon energy purchase

Ericsson is purchasing renewable or green energy wherever practical. During 2014, the green electric power increased in 2014 to 39% compared to 35% at year-end 2013.

42000

Scope 1Scope 2

Voluntary 0 2550000 <1 year Ongoing

Purchase of low carbon energy lifetime is annual, as the decision is reviewed and renovated periodically. In 2014, the total share of certified green electricity in our facilities measured and calculated was 39%.

Transportation: use

Ericsson is strategically shifting from air to surface freight in product transport. 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

44000 Scope 3

Voluntary 560000000 0 <1 year Ongoing Shifting from air to surface lifetime is 1 yr. This strategy is reviewed periodically.



Activity type

Description of activity

Estimated annual CO2e

savings (metric tonnes CO2e)

ScopeVoluntary/ Mandatory

Annual monetary savings

(unit currency -

as specified in CC0.4)

Investment required

(unit currency -

as specified in

CC0.4)

Payback period

Estimated lifetime of

the initiative

Comment

consolidation of material and routes.

Transportation: fleet

Ericsson launched a “pilot program” to test the effectiveness of telematics / GPS reporting devices installed in company vehicles. A test group of more than 400 service vehicles were identified and installed with telematics devices. Based on the result of the pilo, telematics /GPS have been installed in more than 1500 service vehicles are. These devices allowed Ericsson to monitor attributes of vehicle operations, performance, location and velocity.

1350Scope 1

Voluntary 26000000 3586000 <1 year Ongoing

Fuel economy increased 0.7 MPG during the trial, a 5.1% increase. Fuel economy on non -device vehicles over the same timespan decreased by 0.5%. Carbon emissions per mile fell 5%. Annual monetary savings was 7,170,000 SEK (1.1 MUSD) (6.52 exchange rate used). (There are other savings associated with reduce accidents and maintenance cost aprox. 2,054,000 SEK (~315 KUSD) that are not included for the purpose of CDP). Operational cost has been considered as investment is approx. 1,304,000 (200 KUSD). Pay-off for this project is immediate. Similar solutions in other countries have a 3-6 month ROI.

CC3.3cWhat methods do you use to drive investment in emissions reduction activities?

Method Comment

Financial optimization calculations

This method is used for Low-carbon energy purchase and for Energy efficiency: building services.

Employee engagement Business travel improvement and reduction requires employee engagement, but also other Financial optimization calculations.Financial optimization calculations

Many investments made, are not done purely for environmental gains rather for overall efficiency gains. It is very difficult to extract the related emissions reduction isolated figures as they are part of overall programs.

Further Information

Attachments

https://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC3.TargetsandInitiatives/Ericsson-Annual-Report-2014-en.pdfhttps://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC3.TargetsandInitiatives/Ericsson-Annual-Report-2013-en.pdf

Page: CC4. Communication

CC4.1Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s)

Publication Status Page/Section reference Attach the document

In mainstream financial reports in accordance with the CDSB Framework

Complete Annual Reporthttps://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/CC4.1/Ericsson-Annual-Report-2014-en.pdf


CompleteQuarterly report - Q4 - Page 19 / Risk factors

https://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/CC4.1/Ericsson Q4 and full year report 2014-en.pdf



https://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/CC4.1/Ericsson Q3 2014-en.pdf







In voluntary communications CompleteSustainability and Corporate Responsibility Report

In voluntary communications CompleteEricsson energy and carbon report on the impact of the Networked Society

https://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/CC4.1/Ericsson-energy-and-carbon-report Nov 2014.pdf



Further Information

Module: Risks and Opportunities

Page: CC5. Climate Change Risks

CC5.1Have you identified any inherent climate change risks that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply

Risks driven by changes in regulationRisks driven by changes in physical climate parametersRisks driven by changes in other climate-related developments

CC5.1aPlease describe your inherent risks that are driven by changes in regulation

Risk driver Description

Potential impact Timeframe

Direct/Indirect Likelihood Magnitude

of impact

Estimated financial

implications

Management method

Cost of management

Carbon taxes

This type of regulation that imposes specific economic incentives for polluters could affect our customers and Ericsson. The ICT sector with represents approx. 2% of Global GhG emissions, however ICT-enabled solutions offer the potential to reduce GHG emissions by 16.5% by 2020, according to SMARTer2020 study (Ericsson was a main contributor)

Reduction in capital availability

1 to 3 yearsIndirect (Client)

Virtually certain

Low

Ericsson is not disclosing financial information other that the official information in Ericsson Annual Report or Quarterly Report.

Ericsson’s risk management is integrated into the operational processes of the business, and is a part of the EGMS to ensure accountability, effectiveness, efficiency, business continuity and compliance with corporate governance, legal and other requirements. Strategic risks constitute the highest risk to the Company if not managed properly as they could have a long-term impact. Ericsson therefore reviews its long-term objectives, main strategies and business scope on an annual basis and continuously works on its tactics to reach these objectives and to mitigate any risks identified. In the annual strategy and target setting process, objectives are set for the next three to five years. Risks and opportunities are assessed and strategies are developed to achieve the objectives. The strategy process in the Company is well established and involves regions, business units and Group functions. By involving all parts of the business in the process, potential risks are identified early and mitigating actions can be incorporated in the strategy and in the annual target-setting process following the finalization of the strategy. For more information please see Risks management in Ericsson Annual Report 2014

Ericsson is not disclosing financial information other that the official information in Ericsson Annual Report or Quarterly Report. Please see Ericsson Annual Report

Fuel/energy taxes and regulations

Asimetric transposition to EU Members of the European Union Directive on Energy Efficiency will reduce sinergies posibilities to have common frameworks to Ericsson as weel as to our customers, increasing costs. For example specific Energy


Up to 1 year Indirect (Client)

Virtually certain

Low Ericsson is not disclosing financial information other that the official information in Ericsson Annual Report or Quarterly Report.

Ericsson’s risk management is integrated into the operational processes of the business, and is a part of the EGMS to ensure accountability, effectiveness, efficiency, business continuity and compliance with corporate governance, legal and other requirements. Strategic risks constitute the highest risk to the Company if




Risk driver

DescriptionPotential impact

Timeframe Direct/Indirect

Likelihood Magnitude of impact

Estimated financial

implications

Management method

Cost of management

audits requirements on facilitiy energy use, not allowing business to use sampling frameworks would increase audit cost and reduce capital to implement improvement that lead to energy cost reductions hence to CO2e reductions in many cases.

not managed properly as they could have a long-term impact. Ericsson therefore reviews its long-term objectives, main strategies and business scope on an annual basis and continuously works on its tactics to reach these objectives and to mitigate any risks identified. In the annual strategy and target setting process, objectives are set for the next three to five years. Risks and opportunities are assessed and strategies are developed to achieve the objectives. The strategy process in the Company is well established and involves regions, business units and Group functions. By involving all parts of the business in the process, potential risks are identified early and mitigating actions can be incorporated in the strategy and in the annual target-setting process following the finalization of the strategy. For more information please see Risks management in Ericsson Annual Report 2014

Fuel/energy taxes and regulations

Ericsson has been affected by the UK CRC Energy Efficiency Scheme with higher energy costs.

Increased operational cost

Up to 1 year Direct Virtually certain


Ericsson’s risk management is integrated into the operational processes of the business, and is a part of the EGMS to ensure accountability, effectiveness, efficiency, business continuity and compliance with corporate governance, legal and other requirements. Strategic risks constitute the highest risk to the Company if not managed properly as they could have a long-term impact. Ericsson therefore reviews its long-term objectives, main strategies and business scope on an annual basis and continuously works on its tactics to reach these objectives and to mitigate any risks identified. In the annual strategy and target setting process, objectives are set for the next three to five years. Risks and opportunities are assessed and strategies are developed to achieve the objectives. The strategy process in the Company is well established and involves regions, business units and Group functions. By involving all parts of the business in the process, potential risks are identified early and mitigating actions can be incorporated in the strategy and in the annual target-setting process following the

Ericsson is not disclosing financial information other that the official information in Ericsson Annual Report or Quarterly Report Please see Ericsson Annual Report



Risk driver




Estimated financial

implications

Management method

Cost of management

finalization of the strategy. For more information please see Risks management in Ericsson Annual Report 2014

Other regulatory drivers

Telecom Regulatory Authority of India is contemplating measures to address carbon footprint of the telecom sector which could lead to, increased network operational cost. This could lead to reduce availability to invest in more energy efficient equipments or services provided by Ericsson. Various subsidies for eg renewables can be attractive in the short term but long term can distort the business case, if it is built on subsidies and they are removed


Indirect (Client)

Virtually certain

Low




CC5.1bPlease describe your inherent risks that are driven by change in physical climate parameters

Risk driver


TimeframeDirect/Indirect


Estimated financial

implications

Management method

Cost of management

Change in precipitation pattern

Change in precipitation pattern could affect hydro-energy production capabilities, therefore impact on energy prices in some parts of the world. Ericsson is purchasing renewable or green energy, including hydro-power, wherever practical; changes in the precipitation patterns could affect this.


Up to 1 year Indirect (Client)

Exceptionally unlikely


Ericsson’s risk management is integrated into the operational processes of the business, and is a part of the EGMS to ensure accountability, effectiveness, efficiency, business continuity and compliance with corporate governance, legal and other requirements. Strategic risks constitute the highest risk to the Company if not managed properly as they could have a long-term impact. Ericsson therefore reviews its long-term objectives, main strategies and




Risk driver

Description Potential impact



Estimated financial

implications

Management method

Cost of management

business scope on an annual basis and continuously works on its tactics to reach these objectives and to mitigate any risks identified. In the annual strategy and target setting process, objectives are set for the next three to five years. Risks and opportunities are assessed and strategies are developed to achieve the objectives. The strategy process in the Company is well established and involves regions, business units and Group functions. By involving all parts of the business in the process, potential risks are identified early and mitigating actions can be incorporated in the strategy and in the annual target-setting process following the finalization of the strategy. For more information please see Risks management in Ericsson Annual Report 2014

Change in precipitation extremes and droughts

Floods, storms and other extreme weather events could affect our supply chain, our own operations and customers. For example, drought and extreme flooding in north Africa create conflict and instability and end users are not able to afford communication services, which could negatively impact our customers and ultimately Ericsson.


1 to 3 yearsIndirect (Supply chain)

Very unlikely Medium






CC5.1cPlease describe your inherent risks that are driven by changes in other climate-related developments

Risk driver



LikelihoodMagnitude of impact

Estimated financial

implications

Management method

Cost of management

Fluctuating socio-economic conditions

Economic instability due to reduced possibility to live in certain areas, reduces economic development regionally. Ericsson is serving customer in over 180 countries, fluctuating socio-economic conditions impacts Ericsson in such markets.

Reduced demand for goods/services

1 to 3 years DirectExceptionally unlikely

Low



Ericsson is not disclosing financial information other that the official information in Ericsson Annual Report or Quarterly Report. Please see Ericsson Annual Report.

Further Information

Attachments

https://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC5.ClimateChangeRisks/Ericsson-Annual-Report-2014-en.pdf

Page: CC6. Climate Change Opportunities

CC6.1Have you identified any inherent climate change opportunities that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply

Opportunities driven by changes in regulationOpportunities driven by changes in physical climate parametersOpportunities driven by changes in other climate-related developments

CC6.1aPlease describe your inherent opportunities that are driven by changes in regulation

Opportunity driver


Timeframe Direct/Indirect Likelihood Magnitude of impact

Estimated financial

implicationsManagement

method

Cost of management

Other regulatory drivers

Governmental climate policies that recognizes

Increased demand for

1 to 3 years Indirect (Client) Likely Medium Ericsson is not disclosing financial

Governmental climate policies that recognizes

Ericsson is not disclosing financial



Opportunity driver



Estimated financial


method

Cost of management

the potential of transformative solutions such as ICT can increase investment in ICT equipment. We are a world-leading provider of communications networks, telecom services and support solutions. 40% of the world’s mobile traffic runs through networks supplied by Ericsson; therefore policies that recognize the potential effect of ICT and increase investment in ICT will impact Ericsson.

existing products/services

information other that the official information in Ericsson Annual Report or Quarterly Report.

the potential of transformative solutions such as ICT can increase investment in ICT equipment would be manage as regular business. Ericsson’s risk management is integrated into the operational processes of the business, and is a part of the EGMS to ensure accountability, effectiveness, efficiency, business continuity and compliance with corporate governance, legal and other requirements. Strategic risks constitute the highest risk to the Company if not managed properly as they could have a long-term impact. Ericsson therefore reviews its long-term objectives, main strategies and business scope on an annual basis and continuously works on its tactics to reach these objectives and to mitigate any risks identified. In the annual strategy and target setting process, objectives are set for the next three to five years. Risks and opportunities are assessed and strategies are developed to achieve the objectives. The strategy process in the Company is well established and involves regions, business units and Group functions. By involving all parts of the business in the process, potential risks are identified early and mitigating actions can be incorporated in the strategy and in the annual target-setting process following the finalization of the strategy. For more information please see Risks management in Ericsson

information other that the official information in Ericsson Annual Report or Quarterly Report. Please see Ericsson Annual Report



Opportunity driver



Estimated financial


method

Cost of management

Annual Report 2014

Renewable energy regulation

Governmental climate policies that demands more renewable energy sources will increase investment in ICT equipment to make the grids smart. Ericsson has long experience in providing such solutions to do grids smarter.

Increased demand for existing products/services

1 to 3 years Indirect (Client) Very likely Medium-high


Increased demand of Ericsson solutions to do smart grids would be managed as regular business. Ericsson’s risk management is integrated into the operational processes of the business, and is a part of the EGMS to ensure accountability, effectiveness, efficiency, business continuity and compliance with corporate governance, legal and other requirements. Strategic risks constitute the highest risk to the Company if not managed properly as they could have a long-term impact. Ericsson therefore reviews its long-term objectives, main strategies and business scope on an annual basis and continuously works on its tactics to reach these objectives and to mitigate any risks identified. In the annual strategy and target setting process, objectives are set for the next three to five years. Risks and opportunities are assessed and strategies are developed to achieve the objectives. The strategy process in the Company is well established and involves regions, business units and Group functions. By involving all parts of the business in the process, potential risks are identified early and mitigating actions can be incorporated in the strategy and in the annual target-setting process following the finalization of the strategy. For more information please see Risks management in Ericsson




Opportunity driver



Estimated financial


method

Cost of management

Annual Report 2014

Carbon taxes Carbon taxes increases demand for renewables and for efficient transportation systems which increases demand for smart grid solutions incl ICT equipment and ICT equipment that make transportation more efficient. Ericsson is providing such solutions. Carbon taxes would increase the demand of more energy efficient products and solutions for ICT networks. Ericsson is providing such energy efficient products and solutions to operators.


1 to 3 years Indirect (Client) Very likely Medium-high


Increased demand of Ericsson product, services and solutions to do smarter grids, improve transportation would be managed as regular business. Ericsson’s risk management is integrated into the operational processes of the business, and is a part of the EGMS to ensure accountability, effectiveness, efficiency, business continuity and compliance with corporate governance, legal and other requirements. Strategic risks constitute the highest risk to the Company if not managed properly as they could have a long-term impact. Ericsson therefore reviews its long-term objectives, main strategies and business scope on an annual basis and continuously works on its tactics to reach these objectives and to mitigate any risks identified. In the annual strategy and target setting process, objectives are set for the next three to five years. Risks and opportunities are assessed and strategies are developed to achieve the objectives. The strategy process in the Company is well established and involves regions, business units and Group functions. By involving all parts of the business in the process, potential risks are identified early and mitigating actions can be incorporated in the strategy and in the annual target-setting process following the finalization of the strategy. For more information




Opportunity driver



Estimated financial


method

Cost of management

please see Risks management in Ericsson Annual Report 2014

CC6.1bPlease describe the inherent opportunities that are driven by changes in physical climate parameters

Opportunity driver Description Potential

impactTimeframe Direct/

IndirectLikelihood Magnitude

of impactEstimated financial

implications

Management method

Cost of management

Change in precipitation extremes and droughts

Unpredictable and extreme weather takes a huge toll each year on both lives and resources. Better information and real-time weather warnings help people prepare themselves, and can directly save lives and reduce suffering. Ericsson weather information for all is an example of a tool that provides info to farmers and fishing men about weather changes.


3 to 6 yearsIndirect (Client)

Virtually certain

Low-medium




Change in precipitation pattern

Unpredictable and extreme weather takes a huge toll each year on both lives and resources. Better


3 to 6 years Indirect (Client)

Virtually certain

Low-medium Ericsson is not disclosing financial information other that the official information in Ericsson

Ericsson’s risk management is integrated into the operational processes of the business, and is a part of the EGMS to ensure

Ericsson is not disclosing financial information other that the official information in Ericsson






of impactEstimated financial

implications

Management method

Cost of management

information and real-time weather warnings help people prepare themselves, and can directly save lives and reduce suffering. Ericsson weather information for all is an example of a tool that provides info to farmers and fishing men about weather changes.

Annual Report or Quarterly Report.

accountability, effectiveness, efficiency, business continuity and compliance with corporate governance, legal and other requirements. Strategic risks constitute the highest risk to the Company if not managed properly as they could have a long-term impact. Ericsson therefore reviews its long-term objectives, main strategies and business scope on an annual basis and continuously works on its tactics to reach these objectives and to mitigate any risks identified. In the annual strategy and target setting process, objectives are set for the next three to five years. Risks and opportunities are assessed and strategies are developed to achieve the objectives. The strategy process in the Company is well established and involves regions, business units and Group functions. By involving all parts of the business in the process, potential risks are identified early and mitigating actions can be incorporated in the strategy and in the annual target-setting process following the finalization of the strategy. For more information please see Risks management in Ericsson Annual Report 2014

Annual Report or Quarterly Report. Please see Ericsson Annual Report

CC6.1cPlease describe the inherent opportunities that are driven by changes in other climate-related developments

Opportunity driver Description

Potential impact

TimeframeDirect/ Indirect


Estimated financial

implications

Management method

Cost of management

Changing consumer behaviour

Consumer awareness increasing about Climate Change could lead to new behaviours towards low-carbon economy solutions. In the developing world, there is increasing awareness about the way that mobile phones and connectivity can improve every day life, and improve access to



Very likely Medium Ericsson is not disclosing financial information other that the official information in Ericsson Annual Report or Quarterly Report.

Increase investment in ICT equipment would be manage as regular business. Ericsson’s risk management is integrated into the operational processes of the business, and is a part of the EGMS to ensure accountability, effectiveness, efficiency, business continuity and compliance with corporate governance, legal and other







of impact

Estimated financial

implications

Management method

Cost of management

services such as health care, education and improve general livelihoods. An increase of low-carbon economy solutions, including ICT solutions and its potential abatement effect (See enclosed SMARTer2020 report, where Ericsson is a main contributor), ultimate would increase the demand of Ericsson products, services and solutions.

requirements. Strategic risks constitute the highest risk to the Company if not managed properly as they could have a long-term impact. Ericsson therefore reviews its long-term objectives, main strategies and business scope on an annual basis and continuously works on its tactics to reach these objectives and to mitigate any risks identified. In the annual strategy and target setting process, objectives are set for the next three to five years. Risks and opportunities are assessed and strategies are developed to achieve the objectives. The strategy process in the Company is well established and involves regions, business units and Group functions. By involving all parts of the business in the process, potential risks are identified early and mitigating actions can be incorporated in the strategy and in the annual target-setting process following the finalization of the strategy. For more information please see Risks management in Ericsson Annual Report 2014

Increasing humanitarian demands

Worldwide, some 50 million people have been forcibly displaced, according to the UN refugee agency (UNHCR). Separated families have great difficulty in reuniting. Mobile phones can play a crucial role in bringing loved ones back together. Together with Refugees United, Ericsson have developed a mobile phone platform to help refugees trace loved ones.

Wider social benefits



Ericsson’s risk management is integrated into the operational processes of the business, and is a part of the EGMS to ensure accountability, effectiveness, efficiency, business continuity and compliance with corporate governance, legal and other requirements. Strategic risks constitute the highest risk to the Company if not managed properly as they could have a long-term impact. Ericsson therefore reviews its long-term objectives, main strategies and business scope on an annual basis and continuously works on its tactics to reach







of impact

Estimated financial

implications

Management method

Cost of management

these objectives and to mitigate any risks identified. In the annual strategy and target setting process, objectives are set for the next three to five years. Risks and opportunities are assessed and strategies are developed to achieve the objectives. The strategy process in the Company is well established and involves regions, business units and Group functions. By involving all parts of the business in the process, potential risks are identified early and mitigating actions can be incorporated in the strategy and in the annual target-setting process following the finalization of the strategy. For more information please see Risks management in Ericsson Annual Report 2014

Other drivers Changing government behaviour. Government recognition of how the delivery of services such as e- and m-health, e-education, intelligent transport and smart grids will contribute to more sustainable societies and ultimately drive increased investments in ICT and broadband infrastructure, (as oppose to physical infrastructure). An increase Government demand on how delivery of services such as e- and m-health, e-education and other low-carbon economy solutions, including ICT solutions and its potential abatement effect (See enclosed SMARTer2020 report, where Ericsson is a main contributor), ultimate would increase the demand of Ericsson products, services and solutions.




Increase investment in ICT equipment would be manage as regular business. Ericsson’s risk management is integrated into the operational processes of the business, and is a part of the EGMS to ensure accountability, effectiveness, efficiency, business continuity and compliance with corporate governance, legal and other requirements. Strategic risks constitute the highest risk to the Company if not managed properly as they could have a long-term impact. Ericsson therefore reviews its long-term objectives, main strategies and business scope on an annual basis and continuously works on its tactics to reach these objectives and to mitigate any risks identified. In the annual strategy and target setting process, objectives are set for the next three to five years. Risks and opportunities are assessed and strategies are







of impact

Estimated financial

implications

Management method

Cost of management

developed to achieve the objectives. The strategy process in the Company is well established and involves regions, business units and Group functions. By involving all parts of the business in the process, potential risks are identified early and mitigating actions can be incorporated in the strategy and in the annual target-setting process following the finalization of the strategy. For more information please see Risks management in Ericsson Annual Report 2014

Further Information

Attachments

https://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC6.ClimateChangeOpportunities/Ericsson-Annual-Report-2014-en.pdf

Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading

Page: CC7. Emissions Methodology

CC7.1Please provide your base year and base year emissions (Scopes 1 and 2)

Scope Base year Base year emissions (metric tonnes CO2e)Scope 1 Tue 01 Jan 2008 - Wed 31 Dec 2008 28000

Scope 2 Tue 01 Jan 2008 - Wed 31 Dec 2008 196000

CC7.2Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

Please select the published methodologies that you useThe Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)

CC7.2aIf you have selected "Other" in CC7.2 please provide details of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

CC7.3Please give the source for the global warming potentials you have used

Gas ReferenceOther: HCFC-22 IPCC Third Assessment Report (TAR - 100 year)CO2 IPCC Third Assessment Report (TAR - 100 year)HFCs IPCC Third Assessment Report (TAR - 100 year)

Other: R134 IPCC Third Assessment Report (TAR - 100 year)

CC7.4Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data at the bottom of this page

Fuel/Material/EnergyEmission

Factor Unit Reference

Electricity 0.5 Other: kg CO2e/kWhInternational Energy Agency. This is a worldwide average applied to Rest of the world when specific emissions factors are not available.

Electricity 1 Other: g CO2e/kWhIn Sweden. Telge Kraft AB. All sites in Sweden use “good environmental choice”. We use Kg CO2e per KWh, only two decimals force us to change to g. CO2 per KWh

Other: District heating 0.1 Other: kg CO2e/kWhGWP factors from IPCC are used. We are using emissions factors from suppliers when available.

Other: District heating 0.22 Other: kg CO2e/kWh GWP factors from IPCC are used.

Aviation gasoline 0.12Other: kg CO2/pkm ; pkm: personal kilometre = distance travelled

GHG protocol (average for long/medium air travel), DEFRA GHG indicators for long haul air travel with corrections for stacking and greater circle distance

Aviation gasoline 0.65Other: kg CO2/pkm ; pkm: personal kilometre = distance travelled

An extensive investigation of transport resulted in higher emission factors for air transport than the commonly used GHG Protocol emission factors. Ericsson uses the emission factor 0.65 kg CO2/tonnekm for air transport (compared to GHG Protocol: 0.57 kg CO2 /tonneKm).

Other: Car travel 0.16 Vägverket” (average car in the EU) (Vägverket = Swedish Road Administration).



Fuel/Material/EnergyEmission

Factor Unit Reference

Other: kg CO2 /pkm pkm: personal kilometre = distance travelled

Other: Road transports 0.08 Other: kg CO2/tonnekmGHG protocol, average Swedish road transports according to “Väg och transportforsknings institutet” (Swedish Road and Transport Research Institute).

Other: Ship transports 17 Other: g CO2/tonnekmAverage of Maersk Line and Ericsson typical TEU, TEU = Twenty foot container. We use kg CO2e per kWh, only two decimals force us to change to g CO2 per kWh

Further Information

For additional information please see Ericsson Annual Report 2014 (Pages 50-51), Sustainability and Corporate Responsibility Report 2014 (Pages 26-34) inlcuding facts and figures (Page 35). For further details see attachments: Ericsson-Annual-Report-2014-en.pdf Ericsson-Sustainability-and-CR-Report-2014-en.pdf

Attachments

https://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC7.EmissionsMethodology/Ericsson-Annual-Report-2014-en.pdfhttps://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC7.EmissionsMethodology/Ericsson Sustainability and CR Report_2014-en.pdf

Page: CC8. Emissions Data - (1 Jan 2014 - 31 Dec 2014)

CC8.1Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory

Financial control

CC8.2Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e

88000

CC8.3Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e

210000

CC8.4Are there are any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure?

No

CC8.5Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering, handling and calculations

Scope Uncertainty range

Main sources of

uncertaintyPlease expand on the uncertainty in your data

Scope 1

More than 2% but less than or equal to 5%

AssumptionsExtrapolationSampling

Regional emissions factors average to extrapolate offices under certain number of square meter where direct measurements do not exist. Extrapolation is done by number of employees and square meters used. Site measurements cover 79% in terms of internal floor area, 79% in terms of heating energy, 78% in terms of electricity, 76% in terms of hosted heads (HH) and 63% in terms of total reported CO2 emissions for sites. The uncertainty is higher for fleet vehicles emissions due to sampling from the largest markets. Approximately 50% of reported emissions is from direct fuel consumption metering and earlier fleet vehicles investigations in the same market is assumed to be representative for other parts of the fleet vehicles that are not metered directly.

Scope 2


ExtrapolationMetering/ Measurement Constraints

Regional emissions factors average for electricity use, district heating and district cooling use to extrapolate offices under certain number of square meter where direct measurements do not exist. Extrapolation is done by number of employees and square meters used. Site measurements cover 79% in terms of internal floor area, 79% in terms of heating energy, 78% in terms of electricity, 76% in terms of hosted heads (HH) and 63% in terms of total reported CO2 emissions for sites.

CC8.6Please indicate the verification/assurance status that applies to your reported Scope 1 emissions

Third party verification or assurance complete

CC8.6aPlease provide further details of the verification/assurance undertaken for your Scope 1 emissions, and attach the relevant statements

Type of verification

or assuranceAttach the statement Page/section reference Relevant

standard

Proportion of reported Scope

1 emissions verified (%)

High assurancehttps://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/CC8.6a/Ericsson Sustainability and CR Report_2014-en.pdf

Page 56. The assurance The engagement includes a limited assurance engagement on the complete Sustainability & CR Report and audit of carbon dioxide emissions data regarding Ericsson’s own activities on page 27 and 35. Ericsson’s own activities is including Scope 1 emissions.

AA1000AS 100



CC8.7aPlease provide further details of the verification/assurance undertaken for your Scope 2 emissions, and attach the relevant statements




or assuranceAttach the statement Page/Section reference

Relevant standard

Proportion of reported Scope

2 emissions verified (%)

High assurancehttps://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/CC8.7a/Ericsson Sustainability and CR Report_2014-en.pdf

Page 56. The assurance The engagement includes a limited assurance engagement on the complete Sustainability & CR Report and audit of carbon dioxide emissions data regarding Ericsson’s own activities on page 27 and 35. Ericsson’s own activities is including Scope 2 emissions.

AA1000AS 100

CC8.8Please identify if any data points have been verified as part of the third party verification work undertaken, other than the verification of emissions figures reported in CC8.6, CC8.7 and CC14.2

Additional data points verified

Comment

Year on year change in emissions (Scope 1 and 2)

As part of Ericsson Annual Report 2014 verification, YoY emissions from Facilities energy used (Scope1 and Scope 2) and Fleet vehicles were verified. See Ericsson Annual Report - Sustainability and Corporate Responsibility within the Board of Directors (Page 50-51) and Auditor Report (Page 129)

Year on year change in emissions (Scope 3)

As part of Ericsson Annual Report 2013, YoY emissions from Business travel, Product Transportation and Use of sold products were verified. See Ericsson Annual Report - Sustainability and Corporate Responsibility within the Board of Directors (Page 50-51) and Auditor Report (Page 129)

Year on year emissions intensity figure

As part of Ericsson Annual Report 2014, YoY emissions intensity figure was verified. See Ericsson Annual Report - Sustainability and Corporate Responsibility within the Board of Directors (Page 50-51) and Auditor Report (Page 129)

Progress against emission reduction target

As part of Ericsson Annual Report 2014, progress against emission reduction target was verified. Ericsson long-term objective for its own operations, which is to maintain absolute CO2e emissions from Ericsson’s own activities for business travel, product transportation and facilities energy use in 2017 at the same level as in 2011. The Company achieved over 10% reduction of CO2e emissions per employee in 2014. See Ericsson Annual Report - Sustainability and Corporate Responsibility within the Board of Directors (Page 50-51) and Auditor Report (Page 129)

CC8.9Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?

Yes

CC8.9aPlease provide the emissions from biologically sequestered carbon relevant to your organization in metric tonnes CO2

2930

Further Information

For additional information see Ericsson Annual Report 2014

Attachments

https://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC8.EmissionsData(1Jan2014-31Dec2014)/Ericsson-Annual-Report-2014-en.pdf

Page: CC9. Scope 1 Emissions Breakdown - (1 Jan 2014 - 31 Dec 2014)

CC9.1Do you have Scope 1 emissions sources in more than one country?

Yes

CC9.1aPlease break down your total gross global Scope 1 emissions by country/region

Country/Region Scope 1 metric tonnes CO2e

Sweden 1120

Germany 2660United Kingdom 3950United States of America 20160

China 4440Mexico 2

Brazil 3960Italy 5140Spain 180

India 9930Rest of world 35538

Canada 920

CC9.2Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply)

By business divisionBy GHG typeBy activity

CC9.2aPlease break down your total gross global Scope 1 emissions by business division

Business division Scope 1 emissions (metric tonnes CO2e)Business Unit Networks 10900Business Unit Global Services 76000Business Unit Support Solutions 1100



CC9.2cPlease break down your total gross global Scope 1 emissions by GHG type

GHG type Scope 1 emissions (metric tonnes CO2e)CO2 86400

Other: Refrigerants and fire suppression media leakage (mainly HFCs) 1600

CC9.2dPlease break down your total gross global Scope 1 emissions by activity

Activity Scope 1 emissions (metric tonnes CO2e)Offices (Facilities energy use - sites) 17000

Production (Facilities energy use - sites) 3000Services (Fleet vehicles) 68000

Further Information

For more information please see Ericsson Sustainability and CR Report 2014 (Page 35)

Attachments

https://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC9.Scope1EmissionsBreakdown(1Jan2014-31Dec2014)/Ericsson Sustainability and CR Report_2014-en.pdf

Page: CC10. Scope 2 Emissions Breakdown - (1 Jan 2014 - 31 Dec 2014)

CC10.1Do you have Scope 2 emissions sources in more than one country?

Yes

CC10.1aPlease break down your total gross global Scope 2 emissions and energy consumption by country/region

Country/RegionScope 2 metric tonnes CO2e

Purchased and consumed electricity, heat, steam or cooling (MWh)

Purchased and consumed low carbon electricity, heat, steam or cooling accounted for in CC8.3 (MWh)

Sweden 3120 297200 196900

Germany 8180 19670 2530United Kingdom 2190 12210 7250United States of America

45430 134420 22150

China 57260 74950 0Mexico 4220 9410 0

Brazil 1670 24600 19700Italy 1330 29820 26580

Spain 7850 26990 8370India 28510 37000 2130Rest of world 49070 111180 32580

Canada 1170 42690 26470

CC10.2Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply)

By business divisionBy activity

CC10.2aPlease break down your total gross global Scope 2 emissions by business division

Business division Scope 2 emissions (metric tonnes CO2e)Business Unit Networks 105000Business Unit Global Services 97000Business Unit Support Solutions 8000

CC10.2cPlease break down your total gross global Scope 2 emissions by activity

Activity Scope 2 emissions (metric tonnes CO2e)Production (Facilities energy use - Electricity) 17000Production (Facilities energy use - District heating) 200

Offices (Facilities energy use - Electricity) 187000Offices (Facilities energy use - District cooling) 2000Offices (Facilities energy use - District heating) 3800

Further Information

For more information please see Ericsson Sustainability and CR report 2014 (Page 35)

Attachments

https://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC10.Scope2EmissionsBreakdown(1Jan2014-31Dec2014)/Ericsson Sustainability and CR Report_2014-en.pdf

Page: CC11. Energy

CC11.1What percentage of your total operational spend in the reporting year was on energy?


CC11.2



Please state how much fuel, electricity, heat, steam, and cooling in MWh your organization has purchased and consumed during the reporting year

Energy type MWhFuel 349700Electricity 742700

Heat 36300Steam 0Cooling 73700

CC11.3Please complete the table by breaking down the total "Fuel" figure entered above by fuel type

Fuels MWhOther: Local heating fuel (based on oil equivalents) 80000Natural gas 6500

Diesel/Gas oil 263200

CC11.4Please provide details of the electricity, heat, steam or cooling amounts that were accounted at a low carbon emission factor in the Scope 2 figure reported in CC8.3

Basis for applying a low carbon

emission factor

MWh associated with low carbon electricity, heat,

steam or coolingComment

Tracking instruments, Guarantees of Origin

Purchasing renewable or green energy certificates wherever practical. During 2014 the green building-rated area was maintained at around 10%; however, the green electric power increased in 2014 to 39% compared to 35% at year-end 2013. In 2014, facilities’ energy usage was around 230 Ktonnes CO2e. In Sweden, we have had 100% green-certified electricity since 2008.

Further Information

For additional details please see Ericsson Sustainability and CR 2014 report (Page 34-35).

Attachments

https://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC11.Energy/Ericsson Sustainability and CR Report_2014-en.pdf

Page: CC12. Emissions Performance

CC12.1How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year?

Decreased

CC12.1aPlease identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compare to the previous year

Reason Emissions value (percentage)

Direction of change

Comment

Emissions reduction activities

17 DecreaseReduce energy consumption per employee, correlated to office space. Low carbon energy purchase and Energy Efficiency building services within our Financial control as ERA (Emission Reduction Activities).

Divestment

Acquisitions 0.4 IncreaseWe consider that the increase of number of employees (average figure ) from 116,630 (2013) to 117,156 (2014) is impacting in Scope 1 and Scope 2 slightly to the emissions; however our Emissions Reduction Activities are compensating this increse..

Mergers

Change in outputChange in methodology

Change in boundaryChange in physical operating conditions

UnidentifiedOther

CC12.2Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue

Intensity figure

Metric numerator

Metric denominator

% change from

previous year

Direction of change from

previous year

Reason for change

0.00000131metric tonnes CO2e

unit total revenue

16.6 Decrease

Ericsson use Net Sales (228 SEK billion) as metric denominator. Despite the increase in number of employees and increase of products sold/delivered, Ericsson absolute emissions (scope 1 and scope 2 combined) decreased from 356,900 (2013) to 298,000 (2014). The implementation of Emission Reduction Activities (ERA) helped to continous the decoupling between absolute emissions and Net Sales. For more information please see Ericsson Annual Report 2014 (Pages 50-51) and Ericsson Sustainability and Corporate Responsibility 2014 (Pages 35-35)

CC12.3Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per full time equivalent (FTE) employee



Intensity figure

Metric numerator

Metric denominator

% change from

previous year

Direction of change

from previous

year

Reason for change


FTE employee 18.6 Decrease

Ericsson use employee’s average as metric denominator. Improvements in facility energy use were higher that the effect produce by the increase number of employees from 116,630 (2013) to 117,156 (2014) and the increase of products sold/delivered (i.e. Energy use in production). Ericsson absolute emissions (scope 1 and scope 2 combined) have decreased by approximately 18.5% for the reporting year (2014). There are two reasons for this change from last year, the first is an improvement in facility energy use via increase the LEED certificate area and use of green electricity and secondly it is the improvement in fleet vehicles performance. We are reporting the emissions related to workplaces occupied by both employees and consultants working in Ericsson’s premises in our absolute emissions (scope 1 and scope 2 combined). Consultants are not reported as part of our FTE, following the GHG protocol. For more information please see Ericsson Annual Report 2014 (Pages 50-51) and Ericsson Sustainability and Corporate Responsibility 2014 (Pages 35-35)

CC12.4Please provide an additional intensity (normalized) metric that is appropriate to your business operations

Intensity figure

Metric numerator

Metric denominator

% change from

previous year

Direction of change from previous year

Reason for change


Other: Capacity (1000 Subscriptions)

35 Decrease

The products we delivered during 2014 are more energy efficient, we were successfully able to minimize the power consumption and maximize the capacity delivered. For more information please see Ericsson Annual Report 2014 (Pages 50-51) and Ericsson Sustainability and Corporate Responsibility 2014 (Pages 34-35)

Further Information

For more information please see Ericsson Annual Report 2013 (Pages 50-51) and Ericsson Sustainability and Corporate Responsibility 2013 (Pages 34-35)

Attachments

https://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC12.EmissionsPerformance/Ericsson Sustainability and CR Report_2014-en.pdfhttps://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC12.EmissionsPerformance/Ericsson-Annual-Report-2014-en.pdf

Page: CC13. Emissions Trading

CC13.1Do you participate in any emissions trading schemes?

No, and we do not currently anticipate doing so in the next 2 years

CC13.2Has your organization originated any project-based carbon credits or purchased any within the reporting period?

No

Further Information

Page: CC14. Scope 3 Emissions

CC14.1Please account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e

Emissions calculation methodology

Percentage of emissions calculated using data

obtained from suppliers or value chain

partners

Explanation

Purchased goods and services

Relevant, calculated

3156000

Materials, components and packaging are included based on an extensive Life Cycle Assessment (LCA) research. For more information please see Sustainability and Corporate Responsibility Report 2014 (Pages 26-35). For further details see attachments: Ericsson Sustainability and CR report 2014 and GRI performance-2014 (Environmental chapter)

20.00%

Capital goodsRelevant, calculated

100000

Embodied emissions per year of use for buildings. For more information please see Annual Report 2014 (Page 50-51), Sustainability and Corporate Responsibility Report 2014 (Page 35). For further details see attachments: Ericsson-Annual-Report-2014-en, Ericsson Sustainability and CR report 2014 and GRI performance-2014 (Environmental chapter)

20.00%

Fuel-and-energy-related activities (not included in Scope 1 or 2)


153000

For further details see attachments: Ericsson-Annual-Report-2014-en, Ericsson Sustainability and CR report 2014 and GRI performance-2014 (Environmental chapter)

20.00%


32000 We calculate the total transported weight by reports from our Logistics Service Providers

80.00%



Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e




partners

Explanation

Upstream transportation and distribution

(LSPs). Transports not paid for or controlled by Ericsson are not included. Most transports to customers are controlled by Ericsson and are included. Inbound transport from suppliers to our production sites are not included in Ericsson own Activities (LCA), but are included in our Life-Cycle Assessment (LCA) as part of the Supply Chain. For further details see attachments: Ericsson-Annual-Report-2014-en, Ericsson Sustainability and CR report 2014 and GRI performance-2014 (Environmental chapter)

Waste generated in operations

Not relevant, explanation provided

0.00%

Ericsson waste generation in operations due to our production activities and offices is measured in weight, it is insignificant - therefore CO2 emissions related to waste generated in operations are not calculated. Measurements cover 65% of reported waste generation for sites (2014). Office waste measurements were carried out during 2013. The waste investigation covered about 13,300 hosted heads (HH) and 9,900 employees. The average waste generation per employee had decreased from decrease by more than 50% since 2001. Waste impact from production is calculated and included within the Supply Chain (LCA). Waste impact from packaging and included as part of End of Life Treatment (EoLT). For further details see attachments: Ericsson-Annual-Report-2014-en, Ericsson Sustainability and CR report 2014 and GRI performance-2014 (Environmental chapter)

Business travelRelevant, calculated

192000

Emissions due to business travel is including air, road and rail. The measurement is done based on purchased travels for air and rail and calculating km travelled taking into consideration long and short travel for air and applying emissions factors accordingly. No CO2-equivalent emissions are included in the air travel and transport figures. IPCC made a report in 1998 which started the still ongoing debate on the CO2 equivalent emissions from aviation. Many scientists simply use a factor of 2 to describe the CO2-equivalent emissions from aviation. For further details see attachments: Ericsson-Annual-Report-2014-en, Ericsson Sustainability and CR report 2014 and GRI performance-2014 (Environmental chapter)

99.00%

Employee commuting

Not relevant, calculated

73000

Commuting investigations done in 2010 and estimations based on the number of employees. For further details see attachments: Ericsson-Annual-Report-2014-en, Ericsson Sustainability and CR report 2014 and GRI performance-2014 (Environmental chapter)

20.00%

Upstream leased assets


Ericsson is not using this business model. For more information please see Annual Report 2014.

Downstream transportation and distribution


172000

We calculate the total transported weight by reports from our Logistics Service Providers (LSPs). Transports not paid for or controlled by Ericsson are not included. Most transports to customers are controlled by Ericsson and are included. Inbound transport from suppliers to our production sites are not included in Ericsson own Activities (LCA), but are included in our Life-Cycle Assessment (LCA) as part of the Supply Chain. For further details see attachments: Ericsson-Annual-Report-2014-en, Ericsson Sustainability and CR report 2014 and GRI performance-2014 (Environmental chapter)

80.00%

Processing of sold products


5000000

Operator activities related to the maintenance and operation of sold products over entire life time. No primary data collected for 2014, but the calculations are based on an extensive data collection up to 2010. For further details see attachments: Ericsson-Annual-Report-2014-en, Ericsson Sustainability and CR report 2014 and GRI performance-2014 (Environmental chapter).

10.00%

Use of sold products


35000000 For each product type the total energy consumption is calculated as the multiplication of the average energy consumption and the life time. Products also require cooling and power loses exists; these components are included when applicable in the meassurements. The energy consumption are based on collected data on product category energy consumption. All high-consumption product categories are measured in labs, not in field. In addition various field measurements are collected through customer collaborations, and used as bench-mark. For further details see attachments: Ericsson-Annual-Report-2014-en, Ericsson Sustainability and CR report

0.00%



Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e




partners

Explanation

2014 and GRI performance-2014 (Environmental chapter).

End of life treatment of sold products


0

- 324,000 metrics tonnes CO2e i.e. 324,000 saved due to future recycling of products sold during the reporting year (2014). Estimates from Ericsson Ecology Management Program 2012 results (Product End-of-Life Take-Pack) savings: 13,000 metric tonnes CO2. For further details see attachments: Ericsson-Annual-Report-2014-en, Ericsson Sustainability and CR report 2014 and GRI performance-2014 (Environmental chapter).

10.00%

Downstream leased assets



FranchisesNot relevant, explanation provided


InvestmentsNot relevant, explanation provided

Investment and Acquisitions are integrated as part of other categories, as soon as are integrated in Ericsson business. For further details see attachments: Ericsson-Annual-Report-2014-en, Ericsson Sustainability and CR report 2014 and GRI performance-2014 (Environmental chapter).

Other (upstream)


Other upstream are not relevant according to our materiality process and studies. For further details see attachments: Ericsson-Annual-Report-2014-en, Ericsson Sustainability and CR report 2014 and GRI performance-2014 (Environmental chapter).

Other (downstream)

Other downstream are not relevant according to our materiality process and studies. For further details see attachments: Ericsson-Annual-Report-2014-en, Ericsson Sustainability and CR report 2014 and GRI performance-2014 (Environmental chapter).



CC14.2aPlease provide further details of the verification/assurance undertaken, and attach the relevant statements


or assuranceAttach the statement Page/Section reference

Relevant standard

Proportion of Scope 3

emissions verified (%)

High assurance

https://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/CC14.2a/Ericsson Sustainability and CR Report_2014-en.pdf

Page 56. The assurance engagement includes a limited assurance engagement on the complete Sustainability & CR Report and audit of carbon dioxide emissions data regarding Ericsson’s own activities on page 27 and 35. Ericsson’s own activities is including Fuel-and-energy-related activities (not included in Scope 1 or 2); Upstream and Downstream transportation and distribution; Business travel; Employee commuting and End of life treatment of sold products within Scope 3 emissions.

AA1000AS 100

High assurance

https://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/CC14.2a/Ericsson-Annual-Report-2014-en.pdf

Page 129. Report on the annual accounts and consolidated accounts of Ericsson for the year 2014. (The annual accounts and consolidated accounts of the company are included in the printed version of Ericsson Annual Report 2014 on pages 42–128.). Purchased goods and services; Capital goods; Processing of sold products and Use of sold products are included as part of Ericsson Life Cycle Assessment- Carbon footprint 2014.

Other: International Financial Reporting Standards (IFRS)

100

CC14.3Are you able to compare your Scope 3 emissions for the reporting year with those for the previous year for any sources?

Yes

CC14.3aPlease identify the reasons for any change in your Scope 3 emissions and for each of them specify how your emissions compare to the previous year

Sources of Scope 3 emissions

Reason for change

Emissions value

(percentage)

Direction of change

Comment

Purchased goods & services

Change in output

3 Increase Increase of employees and sites in regions of the world with higher emission factors.

Capital goodsEmissions reduction activities

23 DecreaseDespite the increase in number of employees and business Capitals goods were constant.

Fuel- and energy-related activities (not included in Scopes 1 or 2)

Change in physical operating conditions

1 Increase Increase of employees and sites in regions of the world with higher emission factors.



Sources of Scope 3 emissions

Reason for change

Emissions value

(percentage)

Direction of change

Comment

Upstream transportation & distribution


11 Decrease Increase use of surface (non-air) transports, goal related.

Business travelChange in output

12 Increase

Increase in number of employees and business is impacting in the use of air travel. The impressive improvement from 2011 to 2012 (i.e. 16%) set a new challenging baseline. The use of our own solutions such as Video conference or collaborating tools is increasing.

Employee commutingChange in output

3 Increase Aligned to employee growth.

Downstream transportation and distribution


11 Decrease Increase use of surface (non-air) transports, goal related.

Processing of sold products

Change in output

25 Increase Despite the increase of sold product the processing of new ones is more efficient.

Use of sold productsChange in output

25 IncreaseIncrease in number of sold product units and their total future energy use. Although the new products sold are more energy efficient.

End-of-life treatment of sold products


3 Decrease

- 324,000 metrics tonnes CO2e i.e. 324,000 saved due to future recycling of products sold during the reporting year (2014). Estimates from Ericsson Ecology Management Program 2012 results (Product End-of-Life Take-Pack) savings: 13,000 metric tonnes CO2. For further details see attachments: Ericsson-Annual-Report-2014-en, Ericsson Sustainability and CR report 2014 and GRI performance-2014 (Environmental chapter).

CC14.4Do you engage with any of the elements of your value chain on GHG emissions and climate change strategies? (Tick all that apply)

Yes, our suppliersYes, our customersYes, other partners in the value chain

CC14.4aPlease give details of methods of engagement, your strategy for prioritizing engagements and measures of success

Engaging with stakeholders is an inclusive and continuous process that allows us to build relationships and create mutual understanding. Our stakeholders include employees, investors, customers, suppliers, governments, civil society, non-governmental organizations (NGOs), industry partners, media, academia, and consumers.

We work towards continuous improvement to ensure our suppliers meet high social, ethical, human rights and environmental standards. Ericsson develops the relationship with suppliers across three phases:First, we provide suppliers clarity around our sustainability and CR requirements, including environmental requirements.Second, we evaluate suppliers’ sustainability performance through monitoring and audits. This includes identifying and auditing high-risk suppliers.Third, to ensure continuous improvement, we engage with suppliers through audit follow-up, Code of Conductseminars and training sessions, and web-based learning.

Examples of specific methods of engagement are:Requesting product and related LCA data from selected suppliersRequesting transportation and travel data from all our Distribution and Logistics suppliersMeasuring operation and maintenance activities together with customersPrioritizing based on LCA studies for networks and services deliveredMeasuring rate of reported vs estimated data from suppliersInvolving academia (Center for Sustainable Communications at Royal Institute of Technology in Stockholm) in methodology development and review of assessments

CC14.4bTo give a sense of scale of this engagement, please give the number of suppliers with whom you are engaging and the proportion of your total spend that they represent

Number of suppliers % of total spend Comment50 70% Estimate of number of suppliers we request data from, both in LCA studies and as part of yearly reporting

CC14.4cIf you have data on your suppliers’ GHG emissions and climate change strategies, please explain how you make use of that data

How you make use of the data Please give detailsIdentifying GHG sources to prioritize for reduction actions

See 14.4a and 14.4b above how we use data from suppliers. Supplier GhG emissions are requested, upon demand, as part of Ericsson Suppliers Environmental Requirements (see enclosed document).

Further Information

Attachments

https://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC14.Scope3Emissions/GRI-performance-2014.pdfhttps://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC14.Scope3Emissions/Ericsson Sustainability and CR Report_2014-en.pdfhttps://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC14.Scope3Emissions/Ericsson-Annual-Report-2014-en.pdf

Module: Sign Off

Page: CC15. Sign Off

CC15.1Please provide the following information for the person that has signed off (approved) your CDP climate change response

Name Job title Corresponding job category

Mrs. Elaine Weidman-Grunewald

Ericsson Sustainability and Corporate Responsibility Vice President, member of Ericsson’s Global Leadership Team and reporting to President and CEO.

Board/Executive board

Further Information

See for additional information Ericsson organizational chart attached and available on ericsson.com



Attachments

https://www.cdp.net/sites/2015/11/5811/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC15.SignOff/Ericsson-organization-2015-january.pdf

Module: ICT

Page: ICT1. Data center activities

ICT0.1aPlease identify whether "data centers" comprise a significant component of your business within your reporting boundary

Yes

ICT1.1Please provide a description of the parts of your business that fall under “data centers”

Ericsson is using data centers to support their own activities and as part of our services.

Ericsson is not disclosing these figures in 2014.

An industry agreement based on approved standards need to be in place to provide a clear definitions to the CDP ICT module. This agreement will provide comparable measurements.

ICT1.2Please provide your absolute Scope 1 and 2 emissions and electricity consumption for the data centers component of your business

Business activity

Scope 1 emissions (metric tonnes CO2e)


Annual electricity consumption (MWh)

Electricity data collection method

Data centers

ICT1.3What percentage of your ICT population sits in data centers where Power Usage Effectiveness (PUE) is measured on a regular basis?

Percentage CommentEricsson is not disclosing these figures in 2014. An industry agreement based on approved standards need to be in place to provide a clear definitions to this new ICT module. This agreement will provide comparable measurements.

ICT1.4Please provide a Power Usage Effectiveness (PUE) value for your data center(s). You can provide this information as (a) an average, (b) a range or (c) by individual data center - please tick the data you wish to provide (tick all that apply)

ICT1.5Please provide details of how you have calculated your PUE value

ICT1.6Do you use any alternative intensity metrics to assess the energy or emissions performance of your data center(s)?

Yes

ICT1.6aPlease provide details on the alternative intensity metrics you use to assess the energy or the emissions performance of your data center(s)

Utilization rate

ICT1.7Please identify the measures you are planning or have undertaken in the reporting year to increase the energy efficiency of your data center(s)

Status in reporting year

Energy efficiency measure

Comment

Planned OtherIn our test environment labs we created a baseline for energy usage and monitor PUE (Power Usage Effectiveness) for continuous improvement more energy efficient. Our plan includes securing that our test environment labs and data center over the next few years will be to reduce towards PUE 1.3.

ICT1.8Do you participate in any other data center efficiency schemes or have buildings that are sustainably certified or rated?

Yes

ICT1.8aPlease provide details on the data center efficiency schemes you participate in or the buildings that are sustainably certified or rated

Scheme name

Level/certification (or equivalent) achieved in the reporting year

Percentage of your overall facilities to which the scheme

applies

LEED

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. 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

10%

ICT1.9Do you measure the utilization rate of your data center(s)?

Yes

ICT1.9aWhat methodology do you use to calculate the utilization rate of your data center(s)?


An industry agreement based on approved standards need to be in place to provide a clear definitions to CDP ICT module. This agreement will provide comparable



measurementsWe are planning to include it in the future reporting design for global ICT centers

ICT1.10Do you provide carbon emissions data to your clients regarding the data center services they procure?

Yes

ICT1.10aHow do you provide carbon emissions data to your clients regarding the data center services they procure?

We are planning to include it in the future reporting design for global ICT centers

ICT1.11Please describe any efforts you have made to incorporate renewable energy into the electricity supply to your data center(s) or to re-use waste heat

Further Information

Page: ICT2. Provision of network/connectivity services

ICT0.1bPlease identify whether "provision of network/connectivity services" comprises a significant component of your business within your reporting boundary

Yes

ICT2.1Please provide a description of the parts of your business that fall under "provision of network/connectivity services"

Ericsson is a world-leading provider of telecommunications equipment and services to mobile and fixed network operators. Over 1,000 networks in more than 180 countries use our network equipment, and more than 40 percent of the world's mobile traffic passes through Ericsson networks.


An industry agreement based on approved standards need to be in place to provide a clear definitions to The CDP ICT module. This agreement will provide comparable measurements.

ICT2.2Please provide your absolute Scope 1 and 2 emissions and electricity consumption for the provision of network/connectivity services component of your business

Business activityScope 1 emissions

(metric tonnes CO2e)Scope 2 emissions

(metric tonnes CO2e)Annual electricity

consumption (MWh)Electricity data

collection methodProvision of network/connectivity services

ICT2.3Please describe your gross combined Scope 1 and 2 emissions or electricity use for the provision of network/connectivity services component of your business as an intensity metric

Intensity figure

Metric numerator

Metric denominator

% change from previous year


Reason for change

ICT2.4Please explain how you calculated the intensity figures given in response to Question ICT2.3

ICT2.5Do you provide carbon emissions data to your clients regarding the network/connectivity services they procure?

No

Further Information

Page: ICT3. Manufacture or assembly of hardware/components

ICT0.1cPlease identify whether "manufacture or assembly of hardware/components" comprises a significant part of your business within your reporting boundary

Yes

ICT3.1Please provide a description of the parts of your business that fall under "manufacture or assembly of hardware/components"

Segment Networks develops and delivers mobile and fixed infrastructure equipment and software. We are a market leader in 2G/GSM and 3G/WCDMA mobile technologies. We now provide all-IP 4G/LTE networks as the evolution of mobile broadband. Our portfolio also includes CDMA solutions, as well as xDSL, fiber and microwave transmission.


An industry agreement based on approved standards need to be in place to provide a clear definitionsto the CDP ICT module. This agreement will provide comparable measurements.

ICT3.2Please provide your absolute Scope 1 and 2 emissions and electricity consumption for the manufacture or assembly of hardware/components part of your business



Business activityScope 1 emissions

(metric tonnes CO2e)Scope 2 emissions

(metric tonnes CO2e)Annual electricity

consumption (MWh)Electricity data

collection methodManufacture or assembly of hardware/components

ICT3.3Please identify the percentage of your products meeting recognized energy efficiency standards/specifications by sales weighted volume (full product range)

Product type

Standard (sleep mode)

Percentage of products meeting the

standard by sales volume (sleep mode)

Standard (standby mode)


standard by sales volume (standby

mode)

Standard (in use mode)


standard by sales volume (in use mode)

Comment

ICT3.4Of the new products released in the reporting year, please identify the percentage (as a percentage of all new products in that product type category) that meet recognized energy efficiency standards/specifications

Product type

Standard (sleep mode)

Percentage of new products meeting the

standard (sleep mode)

Standard (standby mode)


standard (standby mode)

Standard (in use mode)


standard (in use mode)

Comment

ICT3.5Please describe the efforts your organization has made to improve the energy efficiency of your products

ICT3.6Please describe the GHG emissions abatement measures you have employed specifically in your ICT manufacturing operations

A larger part of factories (by internal floor area and electricity consumption) is still located in Sweden and that has a very low electricity emission factor. In addition to that we purchase 100% green electricity in Sweden and in Tallinn/Estonia. Energy usage is one of the main environmental aspects with required reduction targets for factories

ICT3.7Do you provide carbon emissions data to your clients regarding the hardware/component products they procure?

No

Further Information

Page: ICT4. Manufacture of software

ICT0.1dPlease identify whether "manufacture of software" comprises a significant component of your business within your reporting boundary

Yes

ICT4.1Please provide a description of the parts of your business that fall under "manufacture of software"

We are a leading Information and Communications Technology (ICT) player. Many people are surprised when they discover that we are the world’s fifth largest software company. The vast majority of our R&D engineers are engaged in software development.



ICT4.2Please provide your absolute Scope 1 and 2 emissions and electricity consumption for the software manufacture component of your business

Business activity





Software manufacturing

ICT4.3Please describe your gross combined Scope 1 and 2 emissions for the software manufacture component of your business in metric tonnes CO2e per unit of production

Intensity figure

Metric numerator

Metric denominator



Reason for change

metric tonnes CO2e

Unit of production

ICT4.4What percentage of your software sales (by volume) is in an electronic format?

ICT4.5Do you provide carbon emissions data to your clients regarding the software products they procure?

No

Further Information

Page: ICT5. Business services (office based activities)

ICT0.1e



Please identify whether "business services (office based activities)" comprise a significant component of your business within your reporting boundary

Yes

ICT5.1Please provide a description of the parts of your business that fall under "business services (office based activities)"

With more than 56,000 services professionals globally, we deliver managed services, consulting andsystems integration, customer support and network rollout. We manage complex projects withadvanced IS/IT competence and multi-vendor experience, using a mix of local knowledge and globalexpertise.



ICT5.2Please provide your absolute Scope 1 and 2 emissions and electricity consumption for the business services (office based activities) component of your business

Business activity Scope 1 emissions (metric tonnes CO2e)




Business services (office based activities)

ICT5.3Please describe your gross combined Scope 1 and 2 emissions for the business services (office based activities) component of your business in metric tonnes per square meter

Intensity figure

Metric numerator

Metric denominator



Reason for change

metric tonnes CO2e

Square meter

ICT5.4Please describe your electricity use for the provision of business services (office based activities) component of your business in MWh per square meter

Intensity figure

Metric numerator

Metric denominator



Reason for change

MWh Square meter

Further Information

Page: ICT6. Other activities

ICT0.1fPlease identify whether "other activities" comprise a significant component of your business within your reporting boundary

No

Further Information

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