Cloud Cities                     Accessibility                    MobilityTransparency               Corporate            ...
A CONNECTED  WORLD IS JUST                                                                                                ...
CONTENT and INTROContents                                 the ericsson	3	3     The Ericsson vision     About Ericsson     ...
about this report  technology for good                                                        About this report  In the Ne...
letter FROM THE CEODear Stakeholders,The Networked Society presents enormous opportunities toadvance sustainable developme...
sustainability strategy  Taking a strategic approach  At Ericsson, sustainability and CR is a  strategic priority. We seek...
managing our key issuesManaging our key issuesWe prioritize sustainability and corporate responsibility issues     In dete...
our value chain  Taking a value chain perspective  Sustainability and CR issues are addressed throughout our business oper...
our value chain                                                                                 Key focus areas           ...
materiality   Through the materiality lens   Materiality is the point at which a topic becomes relevant both              ...
stakeholder engagementsengaging with stakeholdersAddressing sustainability and corporateresponsibility issues in an effect...
enabling communications for all  enabling COMMUNICATIONsFOR ALL   From increasing GDP growth and boosting livelihoods to e...
enabling communications for allConnecting the last billion                                                                ...
enabling communications for all   The world as the classroom   About 70% of girls in some sub-Saharan             21st cen...
enabling communications for allErika, 30, is looking for Cecilia.            After five years these two sisters were unite...
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
Ericsson Sustainability and Corporate Responsibility Report 2012
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Ericsson Sustainability and Corporate Responsibility Report 2012

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"Many of the world's major challenges - such as urbanization, climate change, and poverty - could benefit from solutions offered by mobile broadband. Sustainability is a competitive differentiator and is high on our agenda, as well as that of our customers. Throughout the value chain and wherever we do business, we are creating value for ourselves and for our stakeholders by striving to be sustainable and responsible in all that we do."Hans Vestberg, President and CEO.

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Ericsson Sustainability and Corporate Responsibility Report 2012

  1. 1. Cloud Cities Accessibility MobilityTransparency Corporate responsibility Development Energy Smart grids Health Collaboration Professionalism Climate change Products Digital inclusion Engagement Urbanization Human Rights Networked Society Local Sustainability Ethics ResponsibleCommunity Diversity BroadbandAnti-corruption Respect Cyber security ICT Refugee reconnection Supply chain Advocacy Peace Global ConnectivityInnovation Public-private partnership Social media Business Environment Livelihood Education Services Employee Solutions Perseverance Employee engagement Trusttechnologyfor goodERICSSON SUSTAINABILITY ANDCORPORATE RESPONSIBILITY REPORT 2012
  2. 2. A CONNECTED WORLD IS JUST Each minute: THE BEGINNING ... and creating a world of conversations. – 100,000 tweets – 48 hours of YouTube video – 680,000 items shared on Facebook Source: thesocialskinny.com It’s about transforming Then: $10 = 1 CD industries... Now: $10 = over 20 million In the Networked It took 100 years to songs streamed to your mobile device using Spotify Society, connectivity connect 1 billion places and will be the starting 25 years to connect 5 billion people point for new ways Source: Ericsson Mobility Report, 2012 of innovating, collaborating and socializing. ... by disrupting established The world business “Why shouldn’t the car be is getting models... connected? It’s the ultimate smaller. mobile device.” Paul Mascarenas, CTO, Ford Motor Company ... and by creating For every 1,000 connections, new job 80 new jobs are created opportunities. Source: Ericsson and Arthur D Little, 2010-2011 Connecting By 2020 there will be people is just A 1 percentage point the start. 50 billion connected devices – 6 for increase in broadband penetration increases new business registration every connected person by 3.8% Source: Broadband Commission, 2012 Source: Stockholm School of Economics, 2012 Broadband = business Doubling connection The Networked speeds yields a 0.3 Society will bring percentage point increase in GDP significant economic, social and environmental Source: Ericsson and Arthur D Little, 2010-2011 benefits to hundreds of But what does this mean millions of people. to me? Freedom, empowerment, It’s about and opportunity kick-starting economies... ... banking the unbanked... 185,000 people have registered on Refugees Up to one-third of It’s about bringing us Kenya’s GDP passes United’s family-tracing through the mobile banking ... and helping platform closer to our nearest platform M-PESA and dearest... solve some Source: Refugees United Source: Tech Crunch huge global challenges. In 2020, ICT could reduce ... reuniting oil consumption by 21.6 loved ones... 25% of smartphone billion barrels traffic and 40% of Source: GeSI SMARTer 2020 report tablet traffic is video Source: Ericsson Mobility Report, 2012 The Millennium Villages Project Coursera hosts over 200 online courses has brought connectivity to over ... redefining for nearly 1.3 million students learning and 500,000 people in 11 countries Source: BBC in Sub-Saharan Africa education... Source: Ericsson Source: Ericsson2 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  3. 3. CONTENT and INTROContents the ericsson 3 3 The Ericsson vision About Ericsson Vision 4 Technology for Good The Company’s vision is to be the prime driver in an all- 4 About this Report communicating world. Ericsson envisions a continued evolution, 5 Letter from the CEO from having connected 6 billion people to connecting 50 billion 6 Taking a strategic approach “things”. The Company envisions that anything that can benefit 7 Managing our key issues from being connected will be connected, mainly via mobile broad- 8 Taking a value chain perspective band in the Networked Society that is beginning to come to life.10 Through the materiality lens11 About Ericsson Engaging with stakeholders12 Enabling communications for all20 Reducing our environmental impact Communication is changing the way we live and work. When one person connects, his or her world changes. With everything28 Enabling a low-carbon economy connected, our world changes. Ericsson plays a key role in this34 Conducting business responsibly evolution, using innovation to empower people, business, and society. We are enabling the Networked Society with efficient real-42 Leading with values time solutions that allow us all to study, work, and live our lives more freely, in sustainable societies. Since the company was48 Measuring performance established in 1876, we have been a leader in telecommunication Objectives and Achievements and we are now expanding our role into an ICT (Information51 joint venture and Communication Technology) solutions provider. Our offering ST-Ericsson comprises services, software and infrastructure, mainly for telecom operators. Some 40% of the world’s mobile traffic runs52 Auditor’s Report through networks that are supplied by us. We provide solutions54 Memberships and Affiliations and services to all major telecom operators in the world. The networks we manage for operators serve about 950 million subscribers. Today we are more than 110,000 people serving customers in more than 180 countries. Our business includes four segments: Networks (the infrastructure that is the basis for all mobile communication), Global Services (managed services, consulting, and systems integration, customer support, network design and optimization and network rollout), and Support Solutions (software for operations support systems and business support systems, TV and media management, and m-commerce). The fourth segment is joint venture ST-Ericsson, offering modems and ModAps (integrated modem and application processor platforms) for handset and tablet manufacturers. ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 3
  4. 4. about this report technology for good About this report In the Networked Society, Ericsson is the leading advocate of This report, together with additional information available online, Technology for Good. Mobility and broadband will continue to summarizes our 2012 sustainability and corporate responsibility play a decisive role in the transformation of society, and in five (CR) performance. years we believe that 90% of the world’s population will have ac- Sustainability and CR are central to Ericsson’s core business and cess to mobile communication. With this scale, we are presented our commitment to the triple bottom line of responsible financial, with an unprecedented opportunity to help address global sus- environmental and socio-economic performance. Corporate re- tainable development challenges. sponsibility is about maintaining the necessary controls to mini- By using broadband, cloud and mobility to address poverty, mize risks, while creating positive impacts for our stakeholders education, health, human rights, climate change and other chal- and our brand. A sustainable and responsible approach results in lenges, we work to ensure that our technology is a force for good value creation for the company, our employees, our customers, and lasting change. We do this through a wide range of projects, our shareholders and society as a whole. Conducting business research, advocacy and initiatives, public-private partnerships, responsibly through high standards in business ethics is a top social media outreach and other forms of engagement. We focus priority. We believe this approach delivers new business oppor- on the areas where we believe our company and our technology tunities, more efficiency, less risk, greater brand value, market can have the greatest impact on social, economic and environ- leadership and attractiveness as an employer, and we describe mental development. Our approach is to use our core business our progress in this report. – our technology and our expertise – to increase the positive For 2012, for the first time we are reporting according to the UN impacts and minimize risks, where ever we operate in the world. Global Compact (UNGC) Advanced Level criteria, which sets a For more information, visit www.ericsson.com/sustainability. higher standard for reporting among UNGC signatories. Unless Listen to many of our stakeholders and Ericsson experts otherwise stated, all information and data pertains to activities provide insight on topics discussed in this report. The videos undertaken from January 1, 2012 to December 31, 2012. The are available at the Technology for Good Youtube channel. report covers the Ericsson Group, i.e. Telefonaktiebolaget We also welcome you to engage with us via our Technology for LM Ericsson and its subsidiaries, and provides performance Good blog, and to follow us on Facebook and Twitter. highlights from our joint venture ST-Ericsson. The 2012 Ericsson Annual Report provides information on Ericsson’s structure, nature of ownership and legal form, subsidiaries, as well as Blog www.ericsson.com/technology-for-good-blog changes regarding size, structure, financial performance and ownership during 2012. The 2012 Annual Report and other financial information can be www.facebook.com/technologyforgood found at www.ericsson.com/investors. The Sustainability and CR Report is available in limited print and can be downloaded from our website with additional content twitter@ericssonsustain online at www.ericsson.com/sustainability, including our Global Reporting Initiative (GRI) performance summary. To help us improve reporting and ensure transparency, we welcome Technology for Good videos (http://www.youtube.com/playlist?list=PL3DDD369426CF84BA) your feedback and questions on our report and performance. Please email: corporate.responsibility@ericsson.com. Technology for Good photos (www.flickr.com/photos/ericsson_images/collections) For reporting of suspected violations of laws or the Ericsson Technology for Good online pinboard Code of Business Ethics, see reporting.violations@ericsson.com (www.pinterest.com/ericssonpins/technology-for-good/) External Assurance and GRI Application Level This report has been assured by PwC according to Far Ericsson’s Sustainability and Corporate Responsibility Report RevR6 (based on the international standard ISAE3000) and 2012 has achieved an A+ application level, which means the AA1000, see Assurance Statement on pages 52-53. PwC Report has been externally assured, and that the application also performed a CO2e audit on Ericssons own emissions. level has been checked by The GRI G3 guidelines have been used in compiling this a third party, PwC. Report and a complete GRI compilation appears online. 000-1504 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  5. 5. letter FROM THE CEODear Stakeholders,The Networked Society presents enormous opportunities toadvance sustainable development. Our data shows that by 2017,85% of the world’s population will have access to 3G mobilecommunication and 50% will have access to 4G. This will dramati-cally change the ways we can address many of the world’s globalsustainability challenges.As an ICT industry leader, we align our sustainability and corporateresponsibility (CR) priorities with those set at the global level, likethe Millennium Development Goals. We are actively engaged inshaping future sustainable development goals, through activitiesaround the Rio+20 UN Conference on Sustainable Developmentand other discussions exploring the post-2015 developmentagenda. We continue to support the ten principles of the UNGlobal Compact providing a universal framework for businessconduct, and this year we are reporting according to GlobalCompact Advanced.Setting high ambitionsSustainability and CR have been a natural part of Ericsson’s identity groups in which I am personally involved are the Broadbandand strategy since the days of our founder. Now, it is more important Commission for Digital Development, and the Leadership Councilthan ever. As of 2012, our Vice President for Sustainability and of the UN Sustainable Development Solutions Network, a multi-Corporate Responsibility Elaine Weidman-Grunewald reports stakeholder initiative formed in 2012 promoting a solutions-orienteddirectly to me. For 2013, we elevated a Sustainability and CR approach to the post-2015 development agenda.Leadership target to the Group’s top-level scorecard. Tackling the challengesWe set demanding targets and long-term objectives for our sus- Technological developments are happening faster than ever andtainability and CR performance. In 2012 we achieved our five-year will always come with challenges. We are involved in debate andcarbon intensity reduction target a year early, and set new ambi- discussions in the areas most relevant for us. We constantly strivetious targets on reducing the carbon footprint of our own activities. to improve energy efficiency in our portfolio. The many positive benefits of our technology includes fulfillment of human rightsBy continuing to drive global standards and economies of scale, such as freedom of expression, but unintended use of technologycombined with innovative public-private partnerships, we aim to can negatively impact those rights. Through multi-stakeholder dia-make mobile communications more affordable and accessible. logue and collaboration, we look for ways to secure ICT’s positiveWe also work to demonstrate the positive role of technology, benefits and minimize any negative impacts. In 2012, we workedwhere it can shape low-carbon economies, increase access to on further integrating the UN Guiding Principles on Business andeducation, and support other humanitarian issues such as refugees, Human Rights into our business.peace and conflict resolution, and disaster response. Vision and valueFocus on business ethics Sustainability and CR leadership offers significant value to ourEricsson’s strong commitment to ethical business practices is business. It offers vision: Bringing affordable and accessiblebased on respect for internationally agreed principles. Our gover- communication to all reflects our 137-year history and unites ournance system ensures a consistent approach in how we run the 110,000 employees. It demonstrates integrity and high ethics andbusiness. Openness, transparency, and accountability are central helps earn stakeholder trust. It enables a positive contribution toto our long-term strategy and success and we recognize that the local economies where we operate, minimizes risks, offers agrowth must be balanced with responsibility. competitive advantage and saves costs, not least in reducing ourIn 2012, Ericsson re-established a presence in Myanmar for the first environmental impact.time since 1998, following ongoing political reforms. Our research It is difficult to predict all the ways our technology will be used inshows the clear positive benefits of mobile communications for the future. Yet I am certain that as billions more begin to enjoy thethe people of Myanmar, but at the same time we must engage benefits of connectivity, we will identify new opportunities to in-responsibly in Myanmar with respect to human rights. In 2012, novate in ways that sustain our long-term business as well as helpwe joined the Institute for Human Rights and Business initiative on us leverage the benefits of ICT for all.Myanmar and will work with the non-profit, human rights expertgroup Shift over the next two years to strengthen our human rightsframework.Engaged in the solutionsDifferent issues will rise in importance on the global agenda, whichis one of the main reasons I think Ericsson has a responsibility Hans Vestbergto take a leading role in ongoing discussions. Some of the work President and CEO Ericsson ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 5
  6. 6. sustainability strategy Taking a strategic approach At Ericsson, sustainability and CR is a strategic priority. We seek opportunities to leverage our influence as a leader in Ericsson’s sustainability our sector to further sustainable develop- ment. Supported by our strategy (see and cr strategy box), we define sustainability as the suc- cessful integration of social, environmen- Lead in energy and environmental performance for telecom networks tal and economic issues in a triple bottom 1 and services line context: Advocate the role of broadband in sustainable urbanization and in • Social equity: Contributing to making 2 shaping a low carbon economy communications affordable and accessible to all as a basic human need Drive the socio-economic value proposition of broadband and its role 3 in shaping society • Environmental performance: Demonstrating leadership and Be the trusted partner among our stakeholders by managing responsibility in addressing our direct 4 corporate responsibility business risks and indirect environmental impacts, and in enabling a low carbon economy 5 Improve Ericsson’s own environmental performance • Economic prosperity: Building on sustainable business models and alliances with stakeholders who share our commitment relevant levels according to target fulfill- We focus on the sustainability and ment. corporate responsibility issues most Corporate Responsibility is about main- material to Ericsson, our sector and our Our Sustainability Policy describes how taining the necessary controls to minimize stakeholders, and we report on our Ericsson strives towards excellent sus- risks to the business and the brand and performance annually. tainability performance, and the Ericsson about being a good corporate citizen. Code of Conduct policy includes our Driving results Integrating sustainability and CR commitment to the UN Global Compact The Ericsson Sustainability and CR Steering The Sustainability and CR Strategy is fully ten principles in the areas of human Group, comprised of senior executives, integrated in the development of Ericsson’s rights, labor standards, environment aligns sustainability and CR work within business strategy, target setting and risk and anti-corruption. Ericsson’s Code of Ericsson and approves the strategy, management (see illustration) and is Business Ethics summarizes the Group’s objectives and targets. Annual targets actively implemented across the busi- basic policies and directives governing its and long-term objectives support our ness. Continuous dialogue with external relationships internally, with its stakehold- commitment. Each year, we report on and internal stakeholders helps prioritize ers, and with others. It also sets out how a range of objectives and achievements the issues most material for Ericsson. the Group works to achieve and maintain within our most material issues Execution of the Strategy is measured at its high ethical standards. (see pages 48-50). Strategic, target setting and risk management cycle CYCLE STRATEGIC, TARGET SETTING AND RISK MANAGEMENT The annual strategic, target Board Target Approval Group Management Strategy directives setting and risk management Review of one-year risks Quantitative and qualitative situation analysis cycle is part of Ericsson’s strategy process, which is well Target Setting Q4 Q1 Group Strategy Development Related risk identification and Dec Jan (five-year perspective) established within the Group mitigation (12-month horizon) and involves regions, business Nov Feb units and Group functions. Oct Mar New Business Board quarterly risk monitoring Development Sep Apr Region & Account Planning Aug May Jul Jun Business unit & Group Q3 Q2 function strategy planning Board Strategy Approval Review of long-term risks Strategic risk identification and mitigation Source: Ericsson Source: Ericsson Global Leadership Summit on Strategy6 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  7. 7. managing our key issuesManaging our key issuesWe prioritize sustainability and corporate responsibility issues In determining our key issues, Ericsson also considers relevantin terms of their importance to our business, our stakeholders, reporting guidelines such as the Global Reporting Initiative,society and the environment. These are determined through a industry commitments such as the UN Global Compact andcontinuous process of review, consultation, and assessment international standards and guidelines, such as the UN Guid-that takes its starting point in our sustainability strategy work, ing Principles on Business and Human Rights, as well as theand includes a materiality process (page 10), stakeholder Millennium Development Goals. Through this process we haveengagement (page 11), and the results of our Life-Cycle determined that our key material issues are:Assessment (LCA) process. Accessibility and affordability of mobile communication Increased accessibility and affordability of mobile communication can contribute significantly to sustainable development by supporting economic growth, health, education, quality of life, and more. Despite over 6 billion mobile subscriptions worldwide, there is still work to be done to ensure more equitable digital, social and financial inclusion, particularly at the base of the pyramid (page 12). Energy and material performance By designing and manufacturing products and solutions with energy and materials efficiency and reduced energy consumption, we can reduce our own environmental footprint and that of our customers. We also place great emphasis on reducing the carbon footprint of our own internal op- erations. Other important focus areas are reducing energy consumption, phasing out hazardous substances and improving transparency of conflict minerals in our supply chain (page 20). Climate change and urbanization The ICT sector has significant potential to lead the transformation to a low-carbon economy by offering solutions to reduce the 98% of carbon emissions that come from other industries and sectors. We offer solutions for smart grids, remote work, intelligent transport and other innovative uses of ICT, and continue to raise awareness of this potential (page 28). Business ethics
 Good governance and business ethics are essential to responsible business and enhance investor and customer confidence. High environmental and social requirements apply to our global supply chain and we believe that it is important that our business is conducted with respect for universal human rights. Still, the Networked Society brings new ethical dilemmas in terms of ICT’s impact on issues like privacy and freedom of expression (page 34). Employee engagement
 With an engaged and diverse workforce that emphasizes leadership, learning and values, we can better achieve our sustainability and CR aims, attract and retain talented people, respond to our customers’ needs and maintain a competitive advantage. Our vision is to build the best talent in the industry. High health and safety standards are also a top priority (page 42). ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 7
  8. 8. our value chain Taking a value chain perspective Sustainability and CR issues are addressed throughout our business operations and within our sphere of influence, we consider both direct and indirect impacts. Further details are found through out this report. In a value chain perspective, we map the key focus areas as identified in our materiality process (see page 10) in each phase of our value chain. Through stakeholder engagement we aim to leverage our influence and enhance value creation. Ericsson value chain, Sustainability and CR Perspective Key focus areas ›› Responsible sourcing s ea ›› Phase out hazardous substances ar ›› Trace conflict minerals us ›› Reduce energy and CO2e emissions En foc g ag Key ement Engagement SUPPLY CHAIN ›› Energy efficiency forum ›› Joint Audit Committee of a number of customers ›› Standardization bodies on materials use, e.g., IEC* ›› EICC/GeSI* Conflict Minerals Working Group Impact and value ›› CoC* performance improved by 50% Imp ›› Improved dialogue on energy use and CO2e act and value ›› Increased transparency of conflict minerals ›› Driving higher materials standards ›› Lower reputational risks for Ericsson and stakeholders Key focus areas ›› Reducing energy and CO2e emissions ›› Diversity s ›› Ethical business ea ›› Occupational health and safety ar us En foc g ag Key Engagement ement ›› Solutions for green-certified buildings/renewable energy ›› Diversity initiatives. Own operations ›› Raised employee awareness of sustainability and CR ›› Integration of ethical business practices Impact and value ›› Greater use of renewable energy in own facilities ›› Support market demand for renewable energy ›› More opportunities for women in ICT Imp ›› Greater trust in Ericsson’s ethical business practices act and value ›› Improved workplace safety culture8 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  9. 9. our value chain Key focus areas ›› Carbon footprint & climate change ›› Energy and materials performance ›› Role of ICT in low-carbon economy s ›› Human rights (unintended use of products) ea ›› ICT socio-economic impact ar ›› Radio waves and health us En foc g ag Key ement Engagement Products in use ›› Optimize energy-efficient networks with operators ›› Solutions on wider societal challenges ›› Roll out Technology for Good programs* ›› Dialogue and guidelines on responsible use of ICT ›› Research on radio waves and health Impact and value Imp ›› Energy-efficient and low energy-consuming networks act and value ›› Reduce negative environmental impact ›› ICT-enabled solutions to reduce carbon emissions ›› Reduced risk for unintended use of products ›› Greater knowledge on impact of radio waves and health ›› Greater digital and social inclusion Key focus areas ›› Design for disassembly (low environmental impact) ›› Proper handling of e-waste* s ea ar ›› Phase out of hazardous substances us En foc g ag Key ement Engagement ›› Promote proper e-waste handling with UN StEP* initiative End of life ›› Raise standards among recyclers ›› Encourage greater uptake of proper e-waste handling treatment ›› Partner to improve proper e-waste handling in markets where lacking Impact and value Imp ›› Improved e-waste handling act and value ›› Harmonized global approach to e-waste handling ›› Strengthened requirements for recyclers ›› Safer handling of e-waste for workers/environmentDefinitionsCoC = Code of Conduct EC = European Commission Human Rights Sector Guidance Project/ICT industryIEC = International Electrotechnical Commission Technology for Good Programs = e.g., Connect To Learn, Ericsson Response, Refugees UnitedEICC = Electronic Industry Citizenship Coalition E-waste = Electrical and electronic wasteGeSI = Global e-Sustainability Initiative UN StEP = UN Solving the E-Waste Problem initiative ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 9
  10. 10. materiality Through the materiality lens Materiality is the point at which a topic becomes relevant both risk assessments, our Life-Cycle Assessments, the Sustainability in the context of stakeholders’ interest and Ericsson’s strategic Strategy process, Supplier Code of Conduct program, and re- priorities. The materiality map below is the result of a five-step sults of internal and external audits of our management system) process in which Ericsson ranked an issue based on the degree and interest from our stakeholders (using a wide variety of in- of interest to stakeholders and the impact to Ericsson’s business puts). Finally, internal sustainability experts analyzed the outcome to show where these issues align. This allows us to identify priori- of the process, making adjustments based on their understand- ties and align strategy and reporting with emerging stakeholder ing of stakeholder priorities and insight into the business. expectations. This is the first time Ericsson applied this materiality process. We first created a universe of topics based on investor surveys It will be conducted periodically and further refined to create a and dialogue, customer requirements, employee priorities, method that best reflects the issues most relevant to Ericsson, research, and trendmapping and grouped the topics according provides deeper insights into stakeholder expectations, and to our key issues (see page 7). Next, the topics were weighted allows materiality to be comparable over time. from two perspectives: impact to Ericsson’s business (based on MATERIALITY Materiality Assess and engage Actively address and engage HIGH 26 13 4 5 1 3 33 15 27 19 7 35 29 14 32 Interest to stakeholders 2 20 9 17 30 16 18 11 6 34 10 22 12 31 25 28 23 8 24 21 Address Assess Engage when appropriate LOW Impact to Ericsson HIGH Source: Ericsson Conducting business responsibly Enabling communication for all Leading with values Reducing our environmental impact Enabling Low-Carbon economy Source: Ericsson Explanation to the table: 6 Cybersecurity 21 Biodiversity 7 Radio waves and public health 22 Emissions (effluents, air emissions other than GHG) Assess: review and determine the importance of a topic 8 Child labor 23 Environmental legal compliance Address: direct efforts and attention to work with the topic 9 Information security and privacy 24 Waste management (office and production) Engage: with stakeholders to address a topic 10 Forced labor 25 Water consumption 11 Freedom of association 26 Ericsson carbon footprint and climate change The materiality of the topic determines how it is covered in our 12 Policy engagement and advocacy 27 Product energy efficiency annual sustainability and CR reporting. The most material topics 13 Responsible sourcing 28 Responsible land use are covered in this report or online. 14 Access to education 29 Use of renewable energy 15 Digital inclusion 30 Hazardous substances avoidance 1 Anti-corruption 16 Tracing of conflict minerals 31 Efficient use of materials (excluding hazardous) 2 Disaster response 17 Diversity and non-discrimination 32 ICT contribution to low-carbon economy 3 CR risks assessment 18 Occupational health and safety 33 ICT socio-economic impact 4 Whistle-blower procedure 19 Employee engagement 34 Product information and labeling 5 Human rights (Unintended use of ICT) 20 Electrical and electronic waste management 35 Energy consumption (Ericsson own activities)10 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  11. 11. stakeholder engagementsengaging with stakeholdersAddressing sustainability and corporateresponsibility issues in an effective wayrequires engagement with a wide range Shift listens to stake-of stakeholders, including customers,employees, investors, suppliers, industry holders on human rightspartners, government, consumer andbusiness users of telecommunications Ericsson has engaged in a Business Learning Program on Human Rights with theservices, non-governmental organiza- non-profit centre Shift (see pages 36, 38). As part of its independent research,tions, standardization bodies, research Shift undertook a recent trip to Myanmar where it conducted approximately 100institutes, and media. Through collabora- interviews and identified a number of concerns among communities and ethniction we seek to understand their views groups related to companies entering Myanmar. A number of these were specificand incorporate their feedback into our to the ICT industry. Discussions with these local stakeholders will be an impor-ways of working, so that we can arrive at tant part of Ericsson’s own human rights due diligence both before and during itsbetter solutions to address challenges. business operations in Myanmar. Ericsson will carefully consider these and other risks to human rights:To understand how stakeholders perceive • Strengthening the police or • Lack of grievance channelsus on sustainability and CR issues, we military’s control over villages • Security crackdown on publicconduct surveys with employees,customers and investors. We also put • Crony and/or corrupt protestseffort into responding to surveys of subcontractors • Privacy crackdowns linked toothers, including investors, NGOs and • Land-grabbing associated with ICT the internetcustomers, and pay close attention to network coverage • Increased corruption andimproving our rankings. We engage with • Forced labor associated with discrimination around access to ICTcustomers regularly on many issues, public infrastructure Read more at www.shiftproject.orgincluding supply chain management,energy efficiency, and our Technology forGood programs. processes, among other issues. We answer discussions was evident at two eventsHere we present a snapshot of some key many investor surveys and strive to report in which Ericsson was a key partner:stakeholder engagement activities during in a thorough and transparent manner. Rio+Social, held in conjunction with the2012. For more examples, visit UN Sustainable Development Conferencewww.ericsson.com/sustainability. Supplier forum on carbon emissions (Rio+20), and the Social Good Summit, Ericsson held a forum with selected keySustainability and CR briefings in conjunction with the UN General As- suppliers to discuss energy efficiency andfor investors sembly annual meeting in New York. Both greenhouse gas emissions, since suppliersIncreasingly mainstream, as well as offered platforms to engage a wide audi- play an important role in helping EricssonSocially Responsible Investors seek ence on global challenges. Other partners to reduce our indirect emissions. The fo-increased insights into how companies included Mashable, the UN Foundation, rum enabled sharing of best practices andmanage sustainability and corporate the 92nd Street Y, the UN Development focused on challenges related to reducing,responsibility, particularly in regard to Programme, and the Bill and Melinda measuring and reporting greenhouse gaslong- and short-term risks affecting the Gates Foundation. For more, visit emissions and established networks forbusiness. Ericsson meets with investors www.ericsson.com/sustainability. knowledge sharing and joint initiatives.regularly, and provides information on ourstrategy and approach, risk management, Channeling social media Employees rank top sustainability issues 2012 Listen to bloggers at theanti-corruption program, handling of The increasing importance of the role of Percent Social Good Summit talk abouthuman rights and sales compliance social media in rank top sustainability issues 2012 technology as a force for good. Employees sustainable development 50 48 47 44 Percent 40 41 39 30 Employees rank top 50 48 47 20 44 sustainability issues
2012 40 41 39 10 Each year we conduct a detailed employee 0 survey to assess employees’ views on the 30 sustainability issues they consider the most Technology for Good relevant for Ericsson to focus on. A total of 20 Health and safety and Code of Conduct 3,633 employees participated in 2012. Renewable energy (See graph for results in percent). 10 Human rights Enabling low-carbon economy 0 Source: Ericsson Source: Ericsson Technology for Good Health and safety and Code of Conduct ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 11 Renewable energy Human rights
  12. 12. enabling communications for all enabling COMMUNICATIONsFOR ALL From increasing GDP growth and boosting livelihoods to enhancing access to education and health, ICT is a powerful way to unlock the full economic potential of developing nations. Our strategy is to drive the socio-economic value of mobile broadband to shape a world where everyone can benefit from the Networked Society. Together with partners, we drive initiatives and innovative solutions that address our most pressing global challenges, in line with the Millennium Development Goals.12 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  13. 13. enabling communications for allConnecting the last billion Broadband penetration has been proven to have a significant effect on economic development. Every 10% increase in broad-Communications band penetration is shown on average to deliver a GDP growth of 1%. Furthermore, 80 jobs are created for every 1000 broadbandfor all connections. Doubling the broadband speed increases GDP byWe believe that connectivity is a 0.3%, according to a study of 33 OECD countries conducted bystarting point for economic growth Ericsson, Arthur D. Little and Chalmers University.and improved quality of life. The potential is evident, and billions have benefited from the con- tinued growth of the industry. The challenge is to unlock it for the benefit of the “last billion” users at the base of the pyramid. While broadband is getting more affordable, and one-third of Connectivity is improving the world can now get online, many are not part of the digital livelihoods… age, according to the State of Broadband 2012: Achieving Digital For every 10% increase Inclusion for All, a report from the Broadband Commission for in broadband penetration, GDP increases by Digital Development to which Ericsson contributed. Currently one percentage point 20% of households in developing countries have Internet access, Source: Ericsson and Arthur D. Little, 2010-2011 a figure the Broadband Commission wants to double by 2015. To date Connect To Learn has brought 21st-century Listen to Dr. Hamadoun Touré, Secretary General education to 33 schools …by making of the ITU talk about the state of broadband. around the world education available to everyone… A collaborative approach For many years, Ericsson has committed to support the achieve- ment of the Millennium Development Goals (MDGs) by promoting About 2.5 billion people worldwide are unbanked affordable access to telecoms. Ericsson’s approach of enabling …by bridging the – yet 1.7 billion of them have mobile phones with digital divide… communications is built on these pillars: the potential to access m-commerce services • Initiatives linked to our core businessSource: World Bank • Public-private partnerships for higher quality, relevance, There are 43 million refugees worldwide reach and outcome • Customer engagement to leverage shared value …by fostering • Sustainable, scalable business models for long-term impact peace and 185,000 people have registered on the reconnecting • Measuring and monitoring impact Refugees United mobile platform families… One of the first examples where Ericsson put this approach into Source: Refugees United and UNHCR action was as lead telecom partner in the Millennium Villages Project, together with the Earth Institute at Columbia University and Millennium Promise, where we wanted to show that connec- …and by tivity could play a decisive role in fighting poverty in Africa. supporting Ericsson Response volunteers have assisted Today, more than half a million people in eleven countries in disaster-relief in more than 40 relief sub-Saharan Africa are benefiting from mobile connectivity efforts. efforts in 30 countries over the past 12 years through the project, improving access to health and education Source: Ericsson and boosting livelihoods, among other benefits. ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 13
  14. 14. enabling communications for all The world as the classroom About 70% of girls in some sub-Saharan 21st century skills necessary for the As of the end of 2012, over 15,000 countries never get a secondary educa- knowledge society. students globally were benefitting from tion. Education is a powerful tool to end Ericsson’s ICT programs, more than three As of 2012, Connect To Learn’s ICT program poverty and secure a productive life. times the number in 2011. was established in twelve schools in According to UNESCO, one extra year of Millennium Villages in six countries: Collaborative action schooling increases an individual’s earn- Ghana, Tanzania, Kenya, Uganda, Malawi A collaborative action research study ings by up to 10%. For young people in and Senegal, and during 2013 Ericsson together with the Earth Institute is look- Africa and other developing regions, ICT will continue to expand Connect To Learn’s ing at developing an intervention model can have a transformational role in scaling ICT program in the Millennium Villages. to overcome challenges and barriers in up access to quality education through implementing ICT programs in schools innovative programs, such as cloud- Extending the reach in resource-poor settings. The findings, based curricula and school-to-school Building on the success of Connect To available in 2013, will be used as input connectivity. Learn in Africa, new ICT programs were to future development of the program. started in schools in Djibouti, Brazil, Three-fold mission See also www.connecttolearn.org. Chile, South Sudan, Uganda, India and In response to the challenges of access China. Ericsson is working with the gov- and inequality in secondary education, ernment of Guandong and China Mobile and in support of UNESCO’s Education to bring cloud computing-based learning Listen to Connect to Learn for All goals, Connect To Learn was scholar Kusi Hagar of Ghana. to schools in that region. launched in 2010 by Ericsson, Columbia University’s Earth Institute and Millennium Promise. Connect To Learn is aimed at enhancing education in the Millennium Villages of sub-Saharan Africa and has a three-fold mission to provide: • Quality learning and teaching resources through mobile broadband connectivity • Improved access to secondary education by providing scholarships and other support to girls • A global advocacy platform for the importance of quality education While the Millennium Development Goals have been focused on primary education, and have made considerable progress to date, Ericsson and partners identified a gap in secondary education. According to UNESCO, 200 million young people lack basic literacy and numeracy skills essential to learning further skills for work. As well as addressing these basic skills gaps, ICT also provides access to CONNECT TO LEARN Connect To Learn Number of students 16,034 15,000 10,000 9,237 5,000 5,210 2,876 0 H1 H2 H1 H2 2011 2011 2012 2012 Source: Ericsson Connect To Learn is opening the door to a new world of knowledge and possibility. Source: Ericsson14 ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012
  15. 15. enabling communications for allErika, 30, is looking for Cecilia. After five years these two sisters were united with the help of Ben Mori, 30 is looking for David.Erika is from Ogujebe. a borrowed phone and an online database. Ben came from South Sudan in 1991.For refugees,a chance atreconnection 185,000 refugees were registered on the Refugees UnitedEricsson has supported humanitarian situations actively since platform at the start of 2013. A long-term2000, but first became involved in the refugee issue in 2007, objective is 1 million by 2015.when we assisted the United Nations High Commissioner forRefugees (UNHCR) in providing connectivity to two refugeesettlements in northern Uganda. anonymous, and not every refugee who makes a reconnection wants to be reported.Globally, UNHCR estimates that there are more than 43 millionpeople forcibly displaced by conflict or persecution. UNHCR is Part of the reason for the increased momentum in 2012 was theactively seeking solutions for these underserved populations, who launch of the first radio campaign in one of the world’s largestcould benefit significantly from greater access to communications. refugee settlements in Dadaab, Kenya. In partnership with MTN Uganda and the UNHCR, Refugees United sent out its first SMSIn 2010, Ericsson representatives met David and Christopher campaign, specifically targeting refugees in the southern andMikkelsen, founders of Refugees United, who had developed an northern parts of Uganda with information about the service.online family reconnection service to help refugees locate loved Many families were reconnected as a result. In Kampala and Nairobi,ones separated by war, conflict, famine or natural disasters. information about the mobile app is provided at registrationHowever, at that time, less than 2% of their target population had booths run by UNHCR personnel. We are aiming to deploy the serviceaccess to computers and Internet, while some 40% had access in many more countries in 2013. For more, visit www.refunite.org.to mobile phones. Ericsson assisted Refugees United with thedevelopment and deployment of a mobile phone application to Listen to Refugee United volunteer Bahati’s storyfurther support reconnections. of how he helped two sisters reconnect.The service includes a SMS message and WAP version to suitlow-bandwidth phones and needs of the users, and specifically REFUGEES UNITEDadapted mobile applications for the search service, taking into Refugees Unitedaccount illiteracy, privacy, low bandwidth, cost, language and trust. Number of refugees registered Listen to Christopher Mikkelsen of Refugees United talk about the aim to reach 1 million refugees. 200,000 183,292 174,652Registrations tripled in 2012 152,420 150,000The number of refugees registered for the service more than tripledin 2012, and marked 185,000 registrations by the start of 2013.With the urgent need for more outreach, the long-term objective 100,000 90,475is for 1 million refugees to actively use the service by 2015. 65,000 50,000Thanks to extensive awareness raising activities, new methodsof community outreach, and the support of mobile operators 6,100(including Safaricom in Kenya, MTN in Uganda and Vodafone in 0Egypt), about 100 families have been reconnected. According to 2010 2011 2012 2012 2012 2012Refugees United the number may be higher; since the service is Q1 Q2 Q3 Q4 Source: Refugees United ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2012 15 Source: Refugees United

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