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ERICSSON SUSTAINABILITY AND
CORPORATE RESPONSIBILITY REPORT 2009




do you
see what
we see?
ContentS                                                                                                                  About this report                                                                     About Ericsson
    4      message from the ceo                                                                                             this report, together with additional information available online,                   Founded in 1876, ericsson is a leading provider of communications
    6      our most relevant issues                                                                                         summarizes our 2009 sustainability and corporate responsibility                       networks, related services and multimedia solutions. through
    7      engaging with stakeholders                                                                                       (cr) performance.                                                                     our joint ventures st-ericsson and sony ericsson, we are also a
    8      activities around the world                                                                                                                                                                            major provider of handsets.
                                                                                                                            For us, sustainability is about what we call the ‘‘triple bottom line”
   10      enabling communication for all
                                                                                                                            – long-term social equity, economic prosperity and environmental                      our experience in building networks in more than 175 countries
   14      reducing our environmental impact
                                                                                                                            performance. corporate responsibility is about maintaining the                        gives us unique customer and consumer insights, and our
   19      enabling a low-carbon economy
                                                                                                                            necessary controls to minimize risks, while creating positive                         extensive portfolio of telecommunications solutions and
   24      conducting business responsibly
                                                                                                                            business impacts for our stakeholders and our brand, by linking                       intellectual property (patents) offers a true business advantage.
   28      empowering people
                                                                                                                            our products and services to an overall business goal of                              We are committed to working with our customers and partners
   32      ericsson response
                                                                                                                            sustainable growth. a sustainable and responsible approach                            to expand the borders of telecommunications for the benefit of
   34      caring for the community
                                                                                                                            results in value creation for the company, our employees, our                         people everywhere.
   36      st-ericsson
                                                                                                                            customers, our shareholders and society as a whole.
   37      sony ericsson                                                                                                                                                                                          our operations have been divided into segments that create
   38      objectives and achievements                                                                                      unless otherwise stated, all information and data pertains                            competitive advantage and best meet the needs of our global
   40      un Global compact annual communication                                                                           to activities undertaken from January 1, 2009 to December 31,                         customer base.
           on progress                                                                                                      2009. the report covers the ericsson Group, i.e. telefonaktie-
   41      DnV assurance statement                                                                                          bolaget Lm ericsson and its subsidiaries, and provides
   42      memberships                                                                                                      performance highlights from our joint ventures with sony                                       External Assurance
   43      recognition                                                                                                      ericsson and st-ericsson.                                                                      this report, with the exception of pages 36-37
                                                                                                                            the ericsson annual report 2009 provides information on                                        pertaining to sony ericson and st-ericsson, has been
                                                                                                                            ericsson’s structure, nature of ownership and legal form,                             assured by Det norske Veritas. the assurance statement is on
  additional information on ericsson’s sustainability                                                                       subsidiaries, as well as changes regarding size, structure,                           page 41, and a more detailed version can be found online at
  performance is available online, including:                                                                               financial performance and ownership during 2009.                                      www.ericsson.com/sustainability_corporateresponsibility
  Global reporting initiative (Gri)
  Key performance indicators (Kpis)                                                                                         the ericsson 2009 annual report and other financial
                                                                                                                            information can be found at www.ericsson.com/investors.                                        Global reporting initiative
  www.ericsson.com/sustainability_corporateresponsibility                                                                   to help us improve reporting and ensure transparency, we welcome                               (GRI) Application level
                                                                                                                            your feedback and questions on our report and performance.
                                                                                                                                                                                                                  the Gri G3 guidelines have been used in compiling this report.
                                                                                                                            please contact us at corporate.responsibility@ericsson.com.
                                                                                                                                                                                                                  a complete Gri compilation appears online.

                                                                                                                                                                                                                  ericsson’s sustainability & cr report 2009 has achieved an a+
                                                                                                                                                                                                                  application level, which means the report has been externally
                                                                                                                                                                                                                  assured, and that the application level has been checked by a
                                                                                                                                                                                                                  third party, namely Det norske Veritas.




                                                                                                                            NET SALES (SEK* bn)                               NET SALES 2009 (SEK* bn)                    % OF TOTAL NET SALES


                                                                                                                            250                                                                                          12%

                                                                                                                                                              208.9   206.5                                                       10
                                                                                                                                                                                                                         10%
                                                                                                                            200                       187.8
                                                                                                                                              179.8                                                                                      9


                                                                                                                                     153.2                                                                                8%
  The Ericsson Vision                                                                                                       150
                                                                                                                                                                                                                                                7


  our vision is to be the prime driver in an all-communicating world. an all-communicating world is a world in which                                                                                                      6%
  any person can use voice, text, images and video to share ideas and information whenever and wherever they want.
                                                                                                                            100
  as the leading supplier of communication networks and services, we play a vital role in making such a world a reality.                                                                                                                                4       4     4
                                                                                                                                                                                                                          4%
                                                                                                                                                                                 Western Europe           44.6                                                               3        3       3
  sustainability requires a vision. our vision reflects our ambition to use innovative technology to change lives for the
                                                                                                                             50                                                  Central & Eastern Europe,
  better and to connect the world. We embrace our responsibility as the world’s leading telecommunications company                                                               Middle East & Africa      50.7           2%
  and the opportunity it provides us to help shape a more sustainable future.                                                                                                     Asia Pacific             65.8

  respect, professionalism and perseverance are the foundation of the ericsson culture, guiding us in our daily work –        0                                                   Latin America           20.1            0%
  how we relate to people and how we do business. We will continue to show leadership by listening and communicating                 2005     2006    2007    2008    2009        North America           25.4                    US   China   India   Italy   UK Indonesia Brazil Japan Spain
  with others – no matter where or who you are.                                                                             * Swedish Krona



2 chapter name                                                                                                                                                                                                                                                                   about this report   3
Message from the CEO
   We see a future in which telecommunications forms the basis of a 21st-century information-based infrastructure. We see our
   technology having the power to create a more sustainable planet, transform industries and empower people around the globe.

   our world faces some serious challenges. as the market leader         smart grids, electronic-health (e-health) and intelligent transport.       to the un Global compact principles, and our code of conduct and
   in telecom, we know we have a huge role to play in addressing         in shifting from products to services, with today’s technology             code of business ethics are regularly assessed, making sure we are on
   these challenges, but this responsibility is also a business          and know-how, we have the potential to affect climate change               track wherever we are in the world.
   opportunity. the economic recession in 2009, for example,             positively in ways that could not have been imagined a few years
                                                                                                                                                    in 2009, we greatly strengthened our supplier code of conduct (s-coc)
   has provided an opportunity for broadband to help create              ago. this impact will be truly transformational.
                                                                                                                                                    program by completing its global rollout. this means that all our
   jobs and stimulate economic growth. the us Government
                                                                         it is estimated that information and communication technology              business and market units (now reorganized into a regional structure)
   has said the economy sees a tenfold return for every dollar
                                                                         (ict) can enable co2 reductions of 15 percent by 2020. the ict             have trained auditors, as well as procedures in place for assessing
   invested in broadband, and it plans to invest usD 6 billion in
                                                                         sector itself is responsible for just 2 percent of global co2 emissions,   critical suppliers and for planning, conducting and following up s-coc
   broadband networks.
                                                                         yet it has the potential to help offset a significant part of the          audits and on-site assessments.
   by 2020, we see a world with 50 billion connected devices. but        remaining 98 percent.
                                                                                                                                                    our technology, solutions and services strengthen access to basic human
   to reach that vision, we need open standards and interoperability
                                                                         in line with our belief in ict’s role in reducing carbon emissions         rights: the right to health, education and the right to earn a livelihood.
   that do not exist today. if we don’t drive down costs, billions of
                                                                         we participated in the cop15 climate conference in copenhagen,             and we see access to telecommunications as a basic human right.
   people will be left out of global conversations.
                                                                         and signed the prince of Wales’ copenhagen communiqué on
                                                                                                                                                    i am personally committed to continuing the sustainable approach we
                                                                         climate change, which called for a robust and equitable global
                                                                                                                                                    have employed for many years. but this is not about sustainability and
   Alleviating poverty                                                   deal on climate change. We will also be part of ict-related work
                                                                                                                                                    corporate responsibility just for the sake of it. it is about creating
                                                                         for stockholm royal seaport, a sustainable city project that aims
   We see the effect telecommunications is having in alleviating                                                                                    long-term shareholder value, building the brand, and engaging with
                                                                         to be free of fossil fuels by 2030 and cut carbon emissions to
   poverty; the link between access to communication, GDp                                                                                           customers and employees.
                                                                         less than 1.5 tonnes per person by 2020. broadband will be a key
   growth and poverty reduction is well documented. access to            enabler of these goals.                                                    For 2010, my top three sustainability priorities will be as follows…
   communications has a positive impact on GDp and socioeconomic
   development; a 10 percent increase in mobile penetration leads        in the coming years, we envision that video communication will             Firstly, i want to ensure that all our employees think more about
   to a 1.2 percent GDp increase in developing countries.                be available anywhere, anytime, to everyone. We are working                sustainability in their everyday lives and work, because that’s important
                                                                         with key stakeholders in the industry to make a mass market                for our brand and for our business.
   the millennium Development Goals and our work in the                  product that will connect phones, pcs and wall screens at a
   millennium Villages in sub-saharan africa continue to be among                                                                                   secondly, we are building a lot of infrastructure that is using a great
                                                                         fraction of the current cost and with less complexity than today’s
   our core commitments. the support we provide is not in the form                                                                                  deal of power. here, we have been working for the past 10 years to
                                                                         telepresence systems. our vision for video follows our vision for
   of charity, but rather through technology and competence, and                                                                                    improve our equipment’s power consumption. clear targets over the past
                                                                         the mobile communications industry, which today boasts more
   is built on a sustainable business case.                                                                                                         five years show that our radio base stations are now using 50 percent
                                                                         than 4.6 billion subscriptions.
                                                                                                                                                    less power. Further, we have set new targets relating to energy savings
   so far, our commitment has resulted in 85 percent connectivity        Despite this tremendous potential, it is also vitally important that       for the next five years.
   in the millennium Villages. the work there has recently been          we keep our own company, and the industry’s carbon footprint,
   expanded to connect a school in Kumasi, Ghana, with one in                                                                                       thirdly, we are going to work with governments and other industries,
                                                                         in check. in 2009 we achieved our carbon-footprint-reduction
   Washington Dc, allowing excited students to tell each other                                                                                      using telecommunications to reduce co2 emissions. We definitely have
                                                                         targets, meeting our portfolio-efficiency aims, reducing our
   about their daily lives and collaborate on a joint project.                                                                                      a great role to play here.
                                                                         business travel, and improving distribution and logistics.
   Despite these promising initiatives, the full impact telecom can                                                                                 as the world’s leading telecommunications provider, we see the way towards
                                                                         also in 2009 we developed a new framework to help our customers
   have on health, education and income generation has not been                                                                                     a more sustainable future: by utilizing the technology that is available and
                                                                         meet their energy and co2 targets, called tco2. it introduces
   fully explored. in five years, i hope that ericsson and telecom                                                                                  continously developing.
                                                                         carbon metrics into a total-cost-of-ownership (tco) methodology
   will be synonymous with poverty alleviation and the achievement       that allows operators to evaluate the carbon intensity of their            Do you see what we see?
   of the millennium Development Goals.                                  networks while making economical network investment decisions.


   Fighting climate change                                               Basic human rights
   a 21st-century infrastructure built on broadband will be pivotal to   When it comes to corporate responsibility, our unique global
   creating a sustainable, low-carbon economy, because broadband         management system ensures that we apply the same standard in               hans VestberG
   is the foundation that will enable numerous services such as          every market in which we operate. We remain strongly committed             presiDent anD ceo



4 messaGe From the ceo                                                                                                                                                                                          messaGe From the ceo   5
Our most relevant issues                                                                                                              Engaging with stakeholders
   We work with our primary stakeholder groups, using our Group strategy and policies, to define the top areas of material relevance    continuous dialog with stakeholders provides vital input to our                                previously we conducted an annual survey identifying the
   for our efforts in sustainability and corporate responsibility.                                                                      sustainability and cr work. the ericsson strategy process aligns                               top-ranked social, environmental and economic issues for
                                                                                                                                        the business with stakeholder requirements by identifying gaps                                 customers and investors. From 2009, we have included these
   continuing dialog and partnerships help ensure we focus on the issues that are vital to our core business and most relevant to key
                                                                                                                                        and setting objectives. our material impacts are regularly assessed                            questions in the major surveys that ericsson conducts. We also
   stakeholders. We also use market research, risk management and life-cycle assessment (Lca) to help us understand the trends,
                                                                                                                                        to maximize responsiveness and inclusiveness.                                                  measure employees’ views in annual surveys.
   challenges and opportunities affecting our company. these led to us identifying six core themes as the focus for our 2009 report.
                                                                                                                                        Key stakeholders include investors, customers, employees,                                      see the key issues discussed in 2009 below.
                                                                                                                                        suppliers, industry partners, governments, consumer and
                                                                                                                                        business users of telecommunication services, non-governmental
   Enabling communication for all                                                                                                       organizations, standardization bodies, research institutes and
                                                                                                                                        the media.
   connectivity and communications change lives for the better. We are creating
   sustainable growth for society and for our industry by making telecommunications
                                                                                                                                        summary of stakeholder engagement activities and issues
   more accessible and affordable for everyone. this is also an important part of our
   support of the millennium Development Goals (p.10).                                                                                  stakeholder group        2009 engagement activities                 Key issues identified                               how are we addressing the issues?


                                                                                                                                        investors and analysts   •	 multiple one-on-one meetings            •	 integration of cr into risk management           •	 strong focus on supply chain, including prioritized
                                                                                                                                                                 •	 capital markets Day                     •	 Governance, e.g. corruption and supply              commodities (p.15)

   Reducing our environmental impact                                                                                                                             •	 respond to investor questionnaires         chain
                                                                                                                                                                                                            •	 energy consumption
                                                                                                                                                                                                                                                                •	 independent assessment of code of conduct implementation
                                                                                                                                                                                                                                                                   by DnV (p.26)
                                                                                                                                                                                                                                                                •	 employee anti-corruption training (p.25)
                                                                                                                                                                                                                                                                •	 carbon footprint reduction targets (p.15)
   We are working constantly to improve the way we design and manufacture our
   products and solutions – the materials, methods and processes – and to make                                                          customers                •	 meetings and workshops on energy,       •	 importance of energy efficiency and carbon       •	 carbon footprint reduction targets (p.15)
                                                                                                                                                                    supply chain, cr reporting and             footprint                                        •	 solutions launched for energy optimization (p.17-18)
   them more efficient, in order to reduce the impact we and our industry have on                                                                                   advisory services                       •	 how to measure energy efficiency                 •	 increased focus on energy/co 2 standardization (p.16)
   the environment (p.14).                                                                                                                                       •	 customer requirements                   •	 brand risks associated with supply chain         •	 commitment to e-tasc tool, so customers can access our
                                                                                                                                                                 •	 annual customer satisfaction survey        management                                          manufacturing site data electronically
                                                                                                                                                                 •	 cr projects and partnerships            •	 rural, low-income business case                  •	 project for product take-back in non-Weee markets
                                                                                                                                                                                                            •	 occupational health and safety (ohs)             •	 improved ohs reporting and ohsas 18001 certification (p.27)
                                                                                                                                                                                                            •	 sustainable cities and the 98 percent            •	 rural business cases for operators
                                                                                                                                                                                                            •	 end of life treatment of telecom equipment

   Enabling a low-carbon economy                                                                                                        employees                •	 annual employee survey                  •	 identify the barriers to and benefits of video   •	 increased focus on the direct impacts of our operations, e.g.
                                                                                                                                                                 •	 employee sustainability                    conferencing and working from home                  virtual meeting and collaboration tools to reduce travel (p.15)
                                                                                                                                                                    collaboration site                      •	 top 5 employee issues                            •	 all-employee sustainability and cr e-learning and
   information and communication technology (ict) can make a huge difference                                                                                     •	 sustainability and innovation           •	 employee engagement                                 engagement program for 2010
   in the way we protect our planet. We are leading the world into the future with                                                                                  competition

   transformative, sustainable innovations that bring greater efficiency (p.19).                                                        suppliers                •	 supplier audits, assessments            •	 supplier code of conduct (including 2nd          •	 benchmark supplier performance (p.26)
                                                                                                                                                                 •	 seminars on our code of conduct            tier compliance)                                 •	 increased focus on local sourcing and high-risk
                                                                                                                                                                    requirements and approach               •	 network rollout and related h&s issues              commodities and markets (p.26)
                                                                                                                                                                 •	 online code of conduct training         •	 reduce carbon footprint                          •	 online code of conduct training for all suppliers (p.26)
                                                                                                                                                                    launched


   Conducting business responsibly                                                                                                      industry partners        •	 participate in industry initiatives
                                                                                                                                                                    on multiple topics
                                                                                                                                                                                                            •	 making communications more affordable
                                                                                                                                                                                                               and accessible
                                                                                                                                                                                                                                                                •	 supported copenhagen communiqué and business call
                                                                                                                                                                                                                                                                   to action for mDGs
                                                                                                                                                                                                            •	 supply chain management                          •	 participated in steering group for Gsma Green manifesto
   a constant focus on the long-term integrity of our business benefits everyone in                                                                                                                         •	 use of ict to facilitate the transition to an    •	 active participation in the formation of the ict4ee forum
                                                                                                                                                                                                               energy-efficient, low-carbon economy                based on european commission recommendation
   the value chain. the ericsson Group management system (eGms), which includes                                                                                                                             •	 energy measurements                              •	 published white paper on calculating positive climate
   key corporate-responsibility-related policies such as the code of conduct, code                                                                                                                                                                                 impacts (p.19)

   of business ethics, and the environmental policy, help us maintain high standards                                                    Governments              •	 public policy work, meetings with       •	 importance of broadband and                      •	 participate in organizations such as the Global alliance
   across our operations around the world (p.24).                                                                                                                   regulators, research institutions and      communication for all for the development           for ict and Development (GaiD), (p.42)
                                                                                                                                                                    climate advisors                           of sustainable societies                         •	 published policy recommendations on the use of
                                                                                                                                                                 •	 outreach to governments in advance      •	 encourage governments and regulators to             broadband in creating low-carbon economy with WWF
                                                                                                                                                                    of cop15 to profile role of ict in         increase licensing of spectrum                   •	 published white paper on how to calculate positive
                                                                                                                                                                    addressing the climate issue                                                                   climate impacts
                                                                                                                                                                 •	 meetings with governmental bodies
                                                                                                                                                                    on e-health and m-health
   Empowering people                                                                                                                    consumer and             •	 consumer research                       •	 impact of connectivity on improving lives        •	 completed monitoring and evaluation program of
                                                                                                                                        business users                                                         and economic development                            millennium Villages with columbia university
   our people are what make us great, their diversity being a hallmark of our culture.                                                                                                                      •	 role of telecom in a carbon-lean society         •	 completed socioeconomic study in sudan (p.10)
   We are committed to helping them fulfill their potential, with a work environment                                                                                                                        •	 electromagnetic fields (emF)                     •	 consumerLab study in india
                                                                                                                                                                                                                                                                •	 radio waves and health information and research (p.25)
   that encourages innovation and stimulates creativity (p.28).
                                                                                                                                        nGos and international   •	 engagement on various topics, such      •	 increased requests for technological             •	 engaged with nGos in letters to heads of government,
                                                                                                                                        organizations               as telecom for carbon-lean economy         assistance, support and partnership                 promoting the role broadband can play in sustainable
                                                                                                                                                                    (WWF) and cool it campaign              •	 nGos would like to see more activity in use         economic development
                                                                                                                                                                    (Greenpeace), and un agencies on           of ict for low-carbon economies                  •	 published policy recommendations for use of telecom
                                                                                                                                                                    disaster management and m-health        •	 the use of telecom for disaster                     with WWF
                                                                                                                                                                                                               management and m-health is untapped              •	 public-private partnerships regarding telecom for disaster
   Caring for the community                                                                                                                                                                                                                                        management and m-health

                                                                                                                                        standardization bodies   •	 actively participate in                 •	 materials data handling                          •	 iec standardization of materials data handling
   around the world we are actively involved in addressing global sustainability                                                                                    standardization bodies                  •	 measurement specifications for climate           •	 itu and etsi standardization of assessment methods
                                                                                                                                                                                                               change impact assessment and energy                 for environmental impact of ict services; and energy
   challenges at the local level. We also make the most of our expertise through                                                                                                                               efficiency                                          measurement methods with several standardization bodies
   ericsson response, a worldwide employee volunteer initiative that provides
                                                                                                                                        research institutes      •	 participate in international research   •	 Future energy efficiency of                      •	 Lead role in earth project, an eu research initiative for
   communications for disaster-relief operations (p.34).                                                                                                                                                       telecommunication networks                          future energy efficiency of telecommunication networks




6 our most reLeVant issues                                                                                                                                                                                                                                                                            enGaGinG With staKehoLDers     7
activities around                                                                                                                                          5
                                                                                                                                                             DenmarK
                                                                                                                                                                                                                                       7
                                                                                                                                                                                                                                      eGypt

  the world                                                                                                                                                  We supported the WWF earth hour
                                                                                                                                                             copenhagen campaign, held in
                                                                                                                                                             conjunction with December’s
                                                                                                                                                                                                                                      the Green supply initiative has led to major
                                                                                                                                                                                                                                      improvements across the region, reducing the
                                                                                                                                                                                                                                      number of site visits, reusing equipment and
                                                                                                                                                             cop 15 climate summit in the                                             reassessing items reported as faulty.
   For more information on ericsson’s sustainability                                             4                                                           Danish capital (p.35).
   and corporate responsibility activities around the world, visit                                               Dominican repubLic
                                                                                                                 indotel, with the support of ericsson
   www.ericsson.com/sustainability_corporateresponsibility
                                                                                                                 and its customers, has been able
                                                                                                                 to provide telephony and internet                                                                                                       8
                                                                                                                 access to 1.5 million people in the
                                                                                                                 poorest areas of the country by the
                                                                                                                                                                    6                                                                                    morocco
                                                                                                                                                                                                                                                         sixty classrooms in remote
                                                                                                                 end of 2009 (p.12).                               itaLy                                                                                 areas of morocco are now
                                                                                                                                                                   the sicilian city of messina, hit by major                                            connected to the internet and
                                                                                                                                                                   flooding in 2009, is trialing an ericsson                                             equipped with interactive
                                                                                                                                                                   text messaging application to improve                                                 whiteboards (p.12).
                                                                                                                                                                   emergency mobile communication in the
                                                                                                                                                                   hope that it will better protect residents.




                                                                                                                                                                         5



                                                                                                                                                                             6
                                                                                                             3
                                                                                                             suriname
                                                                                                             For the people in the remote interior
     1                                                                                                       of suriname, a solar-powered,
                                                                                                                                                         8
                                                                                                             mobile voice and data network
                                braziL                                                                       from operator Digicel means                                                7
                                ericsson and Vivo are bringing                                               communications with the rest of                                                                                                                                13
                                mobile broadband connectivity to                                                                                                                                                                  14
                                                                                                         4   the world for the first time.                          12                                                                                                      inDonesia
                                30,000 people in 175 villages in the
                                amazonian state of pará in brazil.                                                                                                                                                                                                          indosat, indonesia’s second-largest
                                the aim is to provide e-health and                                                                                                                                                                                                          telecom operator, is bringing
                                e-education services through                                                                                                                             10                                                                                 advanced location-based services
                                mobile broadband (p.12).                                                                                                                                                                                                                    to its 29 million subscribers using
                                                                                                                                                                                 9                                                                                          ericsson technology.
                                                                                                                  3
                                                                                                                                                                                            11                   14
                                                                                                                                                                                                                 inDia
                                                                                                                                                                                                                 students at indira Gandhi
                                                    2                                                                                                                                                            national open university, the
                                                                                                                                                                                                                                                              13
                                                                                                     2
                                                   peru                                                                    1                                                                                     worlds largest, can download
                                                   up to 50 remote villages are                                                                                                                                  course material using an
                                                   getting health, education and                                                                                                                                 ericsson-developed 3G
                                                   government services using                                                                                                                                     environment (p.12).
                                                   broadband communications
                                                   provided by ericsson in a pilot
                                                   project with telefónica and local
                                                   nGo, sembrando.


                                                                                                                                                             9
                                                                                                                                                             sub-saharan aFrica
                                                                                                                                                             We continue our partnership
                                                                                                                      11                                     with the earth institute and
                                                                                                                      LaKe Victoria, aFrica                  local operators to provide                          12
                                                         10                                                           We are continuing to help save         connectivity to more than                           aFrica
                                                                                                                      lives and assist in development        half a million people in the                        ericsson and key partners launched
                                                         aFrica
                                                                                                                      across the Lake Victoria region,       millennium Villages across                          the Weather info for all initiative, which
                                                         cyclist Kate Leeming is riding
                                                                                                                      extending mobile network               10 countries in sub-saharan                         aims to ensure availability of accurate
                                                         24,000km across africa, including
                                                                                                                      coverage for about 3.5 million         africa (p.11).                                      weather information through the
                                                         visiting two millennium Villages, to
                                                         highlight the needs of the continent.                        people across three states and                                                             installation of 5,000 automatic weather
                                                         We are providing all of her                                  launching a safety and security                                                            stations to those most vulnerable to
                                                         communications equipment.                                    initiative (p.11).                                                                         climate change (p.11).



8 actiVities arounD the WorLD                                                                                                                                                                                                                                                             actiVities arounD the WorLD   9
and ensure better household support in        since the launch of the network in 2009,
                                                                                                                                               Millennium Villages                              times of need. they also make it easier to    subscriber traffic has been steadily
                                                                                                                                               more than 500,000 people in rural areas in       access information, health and education      increasing: a clear indication of the need
                                                                                                                                               10 countries in sub-saharan africa benefit       services, and new business opportunities.     for such basic services. the technology
                                                                                                                                               from mobile connectivity as a result of the                                                    is in place and success now depends on
                                                                                                                                               millennium Villages project.                                                                   the various governments being able to




enabling
                                                                                                                                                                                                Lake Victoria                                 establish a long-term search-and-rescue
                                                                                                                                                                                                                                              solution for citizens.
                                                                                                                                                                                                Lake Victoria, africa’s largest lake, is
                                                                                                                                                                                                home to a vital fishing industry with more
                                                                                                                                                                                                than 70,000 boats; 35 million people live
                                                                                                                                                                                                                                              Weather Info for All


communication
                                                                                                                                                                                                along its shores in tanzania, Kenya and
                                                                                                                                                                                                uganda. but catch rates are declining         unpredictable and extreme weather takes
                                                                                                                                                                                                due to overfishing and a lack of resource     a huge toll each year on both lives and
                                                                                                                                                                                                management. in addition, nearly 5000 die      resources. better information and real-time
                                                                                                                                                                                                in accidents on the lake each year.           weather warnings help people prepare




for all
                                                                                                                                                                                                                                              themselves, and can directly save lives.
                                                                                                                                                                                                as part of the Lake Victoria project, which
                                                                                                                                               as part of our commitment to achieving           began in 2007, we are working with the        a 2009 report from the Global humanitarian
                                                                                                                                               the mDGs, we have been working with              Gsm association and mobile operator           Forum (GhF), the anatomy of a silent
                                                                                                                                               millennium promise, the earth institute at       zain to expand mobile coverage and            crisis, states that every year climate
                                                                                                                                               columbia university and african operators        launch a search-and-rescue initiative. the    change causes over 300,000 deaths,
                                                                                                                                               on the project since 2007.                       addition of 21 new sites in 2009 means        seriously affects 325 million people, and
We see that access to mobile communications is critical in breaking     developing countries. mobile communication helps businesses
                                                                                                                                                                                                that the network now covers 80 percent        leads to economic losses of usD 125 billion.
the poverty cycle in developing countries; the right tools can          do better and encourages people to find new income sources.            in 2009, connectivity reached 85 percent
                                                                                                                                                                                                of the fishing zone with most activity.       sub-saharan africa suffers almost 25
help people escape from poverty and achieve the un millennium           it allows a farmer or fisherman to check current market prices so      of the villages. continued traffic growth
                                                                                                                                                                                                the network sites are powered by hybrid       percent of these losses, and is at the most
Development Goals (mDGs).                                               they can take their goods to the appropriate market.                   indicates high demand for services.
                                                                                                                                                                                                and solar solutions, keeping energy costs     immediate risk of droughts and floods.
consumerLab studies by ericsson and partners in countries such          new businesses emerge, based on selling phones, top-up cards           We also conducted a monitoring and               and environmental impact down.
                                                                                                                                                                                                                                              the Weather info for all project – a
as india, sudan and the Dominican republic, and in the millennium       and providing battery-charging services, as well as internet kiosks.   evaluation study of mobile communication’s
                                                                                                                                                                                                                                              partnership between the GhF, ericsson,
Villages, show how mobile communication makes a difference.             entrepreneurs in mayange, rwanda said they now earn 20 percent         impact in the millennium Villages. the
                                                                                                                                                                                                                                              the World meteorological organization,
                                                                        more since the introduction of mobile communications.                  results showed that healthcare greatly
our 2009 studies show how developing countries are using mobile                                                                                                                                                                               the World bank, mobile operators zain,
                                                                                                                                               improved in all the villages in 2009, while
communications to gain economic advantages and improve social           Decreasing costs and collective methods of use are allowing                                                                                                           orange and mtn and the earth institute
                                                                                                                                               toll-free emergency numbers improved
interaction. the mobile phone is not just a convenience; it satisfies   mobile phone technology to reach the bottom of the                                                                                                                    – aims to roll out up to 5000 automatic
                                                                                                                                               connectivity in health emergencies. a
basic human needs and provides access to services like health-          economic pyramid. mobile usage in bihar, india                                                                                                                        weather observation stations throughout
                                                                                                                                               conservative estimate based on interviews
care, education and information supporting people’s livelihood.         has boosted economic growth by 4 percent.                                                                                                                             africa. reusing infrastructure at new and
                                                                                                                                               with health workers suggests that
                                                                                                                                                                                                                                              existing mobile network sites, the stations
our study with the Dominican republic’s ministry of health showed                                                                              equipping them with mobile phones could
                                                                                                                                                                                                                                              will dramatically improve information crucial
that the use of mobile phone applications for health data collection                                                                           save 6000 lives per year in the studied
                                                                                                                                                                                                                                              to predicting and coping with climate
cuts the collection and analysis time from days to minutes.                                                                                    countries. in Dertu, Kenya, an integrated
                                                                                                                                                                                                                                              shifts. the initiative also seeks to distribute
                                                                                                                                               m-health outreach program is treating
the provision of education services is hindered in rural areas due                                                                                                                              the basic idea was simple: extended           weather information by mobile phone.
                                                                                                                                               1000 malaria cases each month.
to costs, distance and a lack of infrastructure. in the Dominican                                                                                                                               mobile coverage will reduce loss of life
                                                                                                                                                                                                                                              initial deployment focused on the area
republic, teachers said access to mobile communications had                                                                                    mobile phones are improving education,           by enabling fishermen to call for help. a
                                                                                                                                                                                                                                              around Lake Victoria in Kenya, tanzania
resulted in increased enrollment and retention of students.                                                                                    boosting teacher presence and teacher            toll-free emergency number was launched
                                                                                                                                                                                                                                              and uganda. the first 19 stations established
                                                                                                                                               quality, and student attendance. in Dertu,       in 2009. the project also seeks to increase
a study by Deloitte showed that a 10 percent increase in                                                                                                                                                                                      there doubled the region’s weather-
                                                                                                                                               Kenya, the number of girls at school rose        socioeconomic development and promote
mobile penetration leads to a 1.2 percent rise in GDp in                                                                                                                                                                                      monitoring capacity. in 2010, additional
                                                                                                                                               significantly from two to 50 in the first        a more sustainable fishing industry by
                                                                                                                                                                                                                                              stations will be deployed in east africa.
                                                                                                                                               month of mobile communications. school           helping local businesses with information
                                                                                                                                               enrollment there tripled and dropout rates       on fish and commodity prices, weather         better weather information will assist
                                                                                                                                               fell by 85 percent. in some villages, half the   alerts, safety bulletins, and by bringing     national meteorological services to make
                                                                                                                                               teachers say they are now better equipped        suppliers and customers together via          more accurate forecasts. the use of
                                                                                                                                               to share knowledge with colleagues and           mobile trade applications.                    mobile phones to distribute information
                                                                                                                                               to carry out their administrative duties.                                                      can help with storm warnings and disaster
                                                                                                                                                                                                in conjunction with the national Lake
                                                                                                                                               this will potentially impact the quality of                                                    prevention, and also enhance economic
                                                                                                                                                                                                rescue institute, a coordinated emergency
                                                                                                                                               primary education for 19.2 million children.                                                   opportunities for tens of millions of people,
                                                                                                                                                                                                search-and-rescue service illustrates the
                                                                                                                                                                                                                                              with relevant information provided for
                                                                                                                                               small businesses are flourishing; two-           potential of ericsson’s mobile positioning
                                                                                                                                                                                                                                              fisheries, agriculture and small business
                                                                                                                                               thirds of people have cut travel costs by        system, a location-based solution that
                                                                                                                                                                                                                                              development.
                                                                                                                                               using mobile connectivity. respondents           helps locate fishermen in distress. in
                                                                                                                                               reported saving usD 5 per trip outside the       addition to this, the ericsson coordcom       While the lack of weather information is
                                                                                                                                               village. interview data indicate that mobile     solution can control and coordinate           most serious in africa, the initiative is well
                                                                                                                                               phones help strengthen social networks           rescue activities.                            suited to expansion to other regions.


                                                                                                                                                                                                                                                                  enabLinG communication For aLL   11
more than 30,000 people who struggle            We are cooperating with indira Gandhi
    Light to Rhamna                                 to access healthcare, education and             national open university, the world’s largest,
    morocco’s rhamna region spans 6000sq            market-places. the few treacherous roads        to build a 3G environment that allows
    km and is home to 300,000 people. the           and the need for waterway transport             students to download course materials
    area, close to the city of marrakesh, is        adversely affect school attendance, for         and get text message alerts. this mission,
    remote, and despite the rugged landscape        example, as most children have to travel        and india’s soaring mobile phone adoption
    most inhabitants work in agriculture.           for hours to get to school.                     figures, will give students the flexibility to
                                                                                                    learn at their own pace, wherever they are.
                                                    the aim is to use the internet to bring
                                                    healthcare and education to those who           indira Gandhi national open university
                                                    are isolated and deprived of such services.     has nearly 3 million enrolled students in
                                                    together with brazilian operator Vivo and       india and 34 other countries.
                                                    the non-governmental organization saúde
                                                    & alegria, we are heading a group of
                                                    eight companies working to bring mobile         Rural communities
                                                    broadband to 175 villages in the region.
                                                                                                    get connected in
                                                    the region’s inhabitants will be able to use    Dominican Republic
    only 34 percent of the population attends       m-health, mobile education and information
    secondary school and 60 percent cannot          services. the services are possible with the    Low mobile penetration, widespread poverty
    read or write; many children stay home to       use of mobile applications and enablers         and unclear business opportunities for
    help with chores. there is one doctor for       such as the mobile survey tool. this enables    operators were some of the barriers to
    every 10,000 people and only one dentist        the collection and subsequent analysis of       bringing broadband to the Dominican
    for the entire population.                      medical data in rural areas, for example,       republic’s rural communities. the govern-
                                                    as well as applications for monitoring          ment’s regulatory agency, indotel, overcame
    starting in 2007, ericsson morocco                                                              these challenges with the innovative rural
                                                    environmental impact, diagnosing patients,
    partnered with the rhamna Foundation,                                                           broadband connectivity program.
                                                    smoothing the progress of communication
    maroc telecom, the moroccan ministry
                                                    within the communities and running              When indotel put out a tender in 2007,
    of education and the ministry of health
                                                    studies to monitor the quality of life index.   only 30 percent of the country’s 383
    to bring mobile education to schools,
    m-health services to rhamna and                 mobile broadband infrastructure is              municipalities had broadband capacity.
    m-learning services that help farmers           operated and maintained by Vivo and the         in 2009, the project provided telephony
    with harvesting.                                Vivo institute, which is responsible for the    and internet access to approximately
                                                    company’s social investments. Vivo will         1.5 million people and 508 communities,
    the project is called Lumière de rhamna                                                         mostly in the poorest areas.
                                                    develop methodologies and practices
    or Light of rhamna. in 2009, the first
                                                    for network learning, while ericsson will       indotel worked with companies such as
    phase of the project linked 60 classrooms
                                                    implement the necessary solutions,              ericsson to demonstrate the technology’s
    to the internet and equipped them with
                                                    services and applications.                      availability and convince operators of
    interactive whiteboards that connect to
    a computer and a projector. the goal has        Local amazon villages can access                the business opportunity. ericsson
    been to bring mobile education to 347           communication services for development          helped prove that cost-effective mobile
    schools. the second phase will boost            and fulfilling basic needs. equal access        broadband technology is available to meet
    healthcare services and reduce the need         to healthcare, education and information        the connectivity needs of the country.
    for travel in the region by providing a         will allow people to make a living and          the second phase of the project will
    minivan transporting m-health solutions,        contribute to the country’s development.        start in 2010 with an additional 1000
    a doctor and a nurse. the third phase will      it also gives them tools to defend their        rural communities.
    enable farmers to better harvest the land.      natural resources and support the social
                                                    and economic use of the territories.            the project demonstrates the value of
    in late 2009, his majesty King mohammed                                                         broadband access in emerging markets.
    Vi visited the rhamna areas of bengrir                                                          it has, for example, had a significant
    and nzalt Laadem to see the project. he
    appreciated that teachers will have access
                                                    World’s largest                                 impact on students wanting to gain a
                                                                                                    university degree, and even enabled
    to distant classrooms with this connectivity,   university goes                                 some to get better jobs because they
    and that the same concept could be              mobile                                          have acquired new internet skills.
    brought to villages, providing farmers with                                                     broadband access has also helped to
    learning services, for example.                 With only 15 percent of students reaching
                                                                                                    boost people’s incomes, giving them
                                                    high school, a shortage of teachers with
                                                                                                    access to up-to-date information and
                                                    higher degrees, and 50 percent of college
                                                                                                    reducing their travel costs.
                                                    professors with no master’s degree or phD,
    Reaching the Amazon                             the mobile phone is bringing university         When completed, the project will
    the amazonian state of pará in brazil is        studies to millions throughout india, while     position the Dominican republic as the
    one of the most remote areas in the world.      responding to the government’s work             country with the best rural broadband
    the region of belterra in pará is home to       towards promoting higher education.             infrastructure in Latin america.


12 enabLinG communication For aLL
Ericsson Sustainability And Corporate Responsibility Report 2009
Ericsson Sustainability And Corporate Responsibility Report 2009
Ericsson Sustainability And Corporate Responsibility Report 2009
Ericsson Sustainability And Corporate Responsibility Report 2009
Ericsson Sustainability And Corporate Responsibility Report 2009
Ericsson Sustainability And Corporate Responsibility Report 2009
Ericsson Sustainability And Corporate Responsibility Report 2009
Ericsson Sustainability And Corporate Responsibility Report 2009
Ericsson Sustainability And Corporate Responsibility Report 2009
Ericsson Sustainability And Corporate Responsibility Report 2009
Ericsson Sustainability And Corporate Responsibility Report 2009
Ericsson Sustainability And Corporate Responsibility Report 2009
Ericsson Sustainability And Corporate Responsibility Report 2009
Ericsson Sustainability And Corporate Responsibility Report 2009
Ericsson Sustainability And Corporate Responsibility Report 2009
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Ericsson Sustainability And Corporate Responsibility Report 2009

  • 1. ERICSSON SUSTAINABILITY AND CORPORATE RESPONSIBILITY REPORT 2009 do you see what we see?
  • 2. ContentS About this report About Ericsson 4 message from the ceo this report, together with additional information available online, Founded in 1876, ericsson is a leading provider of communications 6 our most relevant issues summarizes our 2009 sustainability and corporate responsibility networks, related services and multimedia solutions. through 7 engaging with stakeholders (cr) performance. our joint ventures st-ericsson and sony ericsson, we are also a 8 activities around the world major provider of handsets. For us, sustainability is about what we call the ‘‘triple bottom line” 10 enabling communication for all – long-term social equity, economic prosperity and environmental our experience in building networks in more than 175 countries 14 reducing our environmental impact performance. corporate responsibility is about maintaining the gives us unique customer and consumer insights, and our 19 enabling a low-carbon economy necessary controls to minimize risks, while creating positive extensive portfolio of telecommunications solutions and 24 conducting business responsibly business impacts for our stakeholders and our brand, by linking intellectual property (patents) offers a true business advantage. 28 empowering people our products and services to an overall business goal of We are committed to working with our customers and partners 32 ericsson response sustainable growth. a sustainable and responsible approach to expand the borders of telecommunications for the benefit of 34 caring for the community results in value creation for the company, our employees, our people everywhere. 36 st-ericsson customers, our shareholders and society as a whole. 37 sony ericsson our operations have been divided into segments that create 38 objectives and achievements unless otherwise stated, all information and data pertains competitive advantage and best meet the needs of our global 40 un Global compact annual communication to activities undertaken from January 1, 2009 to December 31, customer base. on progress 2009. the report covers the ericsson Group, i.e. telefonaktie- 41 DnV assurance statement bolaget Lm ericsson and its subsidiaries, and provides 42 memberships performance highlights from our joint ventures with sony External Assurance 43 recognition ericsson and st-ericsson. this report, with the exception of pages 36-37 the ericsson annual report 2009 provides information on pertaining to sony ericson and st-ericsson, has been ericsson’s structure, nature of ownership and legal form, assured by Det norske Veritas. the assurance statement is on additional information on ericsson’s sustainability subsidiaries, as well as changes regarding size, structure, page 41, and a more detailed version can be found online at performance is available online, including: financial performance and ownership during 2009. www.ericsson.com/sustainability_corporateresponsibility Global reporting initiative (Gri) Key performance indicators (Kpis) the ericsson 2009 annual report and other financial information can be found at www.ericsson.com/investors. Global reporting initiative www.ericsson.com/sustainability_corporateresponsibility to help us improve reporting and ensure transparency, we welcome (GRI) Application level your feedback and questions on our report and performance. the Gri G3 guidelines have been used in compiling this report. please contact us at corporate.responsibility@ericsson.com. a complete Gri compilation appears online. ericsson’s sustainability & cr report 2009 has achieved an a+ application level, which means the report has been externally assured, and that the application level has been checked by a third party, namely Det norske Veritas. NET SALES (SEK* bn) NET SALES 2009 (SEK* bn) % OF TOTAL NET SALES 250 12% 208.9 206.5 10 10% 200 187.8 179.8 9 153.2 8% The Ericsson Vision 150 7 our vision is to be the prime driver in an all-communicating world. an all-communicating world is a world in which 6% any person can use voice, text, images and video to share ideas and information whenever and wherever they want. 100 as the leading supplier of communication networks and services, we play a vital role in making such a world a reality. 4 4 4 4% Western Europe 44.6 3 3 3 sustainability requires a vision. our vision reflects our ambition to use innovative technology to change lives for the 50 Central & Eastern Europe, better and to connect the world. We embrace our responsibility as the world’s leading telecommunications company Middle East & Africa 50.7 2% and the opportunity it provides us to help shape a more sustainable future. Asia Pacific 65.8 respect, professionalism and perseverance are the foundation of the ericsson culture, guiding us in our daily work – 0 Latin America 20.1 0% how we relate to people and how we do business. We will continue to show leadership by listening and communicating 2005 2006 2007 2008 2009 North America 25.4 US China India Italy UK Indonesia Brazil Japan Spain with others – no matter where or who you are. * Swedish Krona 2 chapter name about this report 3
  • 3. Message from the CEO We see a future in which telecommunications forms the basis of a 21st-century information-based infrastructure. We see our technology having the power to create a more sustainable planet, transform industries and empower people around the globe. our world faces some serious challenges. as the market leader smart grids, electronic-health (e-health) and intelligent transport. to the un Global compact principles, and our code of conduct and in telecom, we know we have a huge role to play in addressing in shifting from products to services, with today’s technology code of business ethics are regularly assessed, making sure we are on these challenges, but this responsibility is also a business and know-how, we have the potential to affect climate change track wherever we are in the world. opportunity. the economic recession in 2009, for example, positively in ways that could not have been imagined a few years in 2009, we greatly strengthened our supplier code of conduct (s-coc) has provided an opportunity for broadband to help create ago. this impact will be truly transformational. program by completing its global rollout. this means that all our jobs and stimulate economic growth. the us Government it is estimated that information and communication technology business and market units (now reorganized into a regional structure) has said the economy sees a tenfold return for every dollar (ict) can enable co2 reductions of 15 percent by 2020. the ict have trained auditors, as well as procedures in place for assessing invested in broadband, and it plans to invest usD 6 billion in sector itself is responsible for just 2 percent of global co2 emissions, critical suppliers and for planning, conducting and following up s-coc broadband networks. yet it has the potential to help offset a significant part of the audits and on-site assessments. by 2020, we see a world with 50 billion connected devices. but remaining 98 percent. our technology, solutions and services strengthen access to basic human to reach that vision, we need open standards and interoperability in line with our belief in ict’s role in reducing carbon emissions rights: the right to health, education and the right to earn a livelihood. that do not exist today. if we don’t drive down costs, billions of we participated in the cop15 climate conference in copenhagen, and we see access to telecommunications as a basic human right. people will be left out of global conversations. and signed the prince of Wales’ copenhagen communiqué on i am personally committed to continuing the sustainable approach we climate change, which called for a robust and equitable global have employed for many years. but this is not about sustainability and Alleviating poverty deal on climate change. We will also be part of ict-related work corporate responsibility just for the sake of it. it is about creating for stockholm royal seaport, a sustainable city project that aims We see the effect telecommunications is having in alleviating long-term shareholder value, building the brand, and engaging with to be free of fossil fuels by 2030 and cut carbon emissions to poverty; the link between access to communication, GDp customers and employees. less than 1.5 tonnes per person by 2020. broadband will be a key growth and poverty reduction is well documented. access to enabler of these goals. For 2010, my top three sustainability priorities will be as follows… communications has a positive impact on GDp and socioeconomic development; a 10 percent increase in mobile penetration leads in the coming years, we envision that video communication will Firstly, i want to ensure that all our employees think more about to a 1.2 percent GDp increase in developing countries. be available anywhere, anytime, to everyone. We are working sustainability in their everyday lives and work, because that’s important with key stakeholders in the industry to make a mass market for our brand and for our business. the millennium Development Goals and our work in the product that will connect phones, pcs and wall screens at a millennium Villages in sub-saharan africa continue to be among secondly, we are building a lot of infrastructure that is using a great fraction of the current cost and with less complexity than today’s our core commitments. the support we provide is not in the form deal of power. here, we have been working for the past 10 years to telepresence systems. our vision for video follows our vision for of charity, but rather through technology and competence, and improve our equipment’s power consumption. clear targets over the past the mobile communications industry, which today boasts more is built on a sustainable business case. five years show that our radio base stations are now using 50 percent than 4.6 billion subscriptions. less power. Further, we have set new targets relating to energy savings so far, our commitment has resulted in 85 percent connectivity Despite this tremendous potential, it is also vitally important that for the next five years. in the millennium Villages. the work there has recently been we keep our own company, and the industry’s carbon footprint, expanded to connect a school in Kumasi, Ghana, with one in thirdly, we are going to work with governments and other industries, in check. in 2009 we achieved our carbon-footprint-reduction Washington Dc, allowing excited students to tell each other using telecommunications to reduce co2 emissions. We definitely have targets, meeting our portfolio-efficiency aims, reducing our about their daily lives and collaborate on a joint project. a great role to play here. business travel, and improving distribution and logistics. Despite these promising initiatives, the full impact telecom can as the world’s leading telecommunications provider, we see the way towards also in 2009 we developed a new framework to help our customers have on health, education and income generation has not been a more sustainable future: by utilizing the technology that is available and meet their energy and co2 targets, called tco2. it introduces fully explored. in five years, i hope that ericsson and telecom continously developing. carbon metrics into a total-cost-of-ownership (tco) methodology will be synonymous with poverty alleviation and the achievement that allows operators to evaluate the carbon intensity of their Do you see what we see? of the millennium Development Goals. networks while making economical network investment decisions. Fighting climate change Basic human rights a 21st-century infrastructure built on broadband will be pivotal to When it comes to corporate responsibility, our unique global creating a sustainable, low-carbon economy, because broadband management system ensures that we apply the same standard in hans VestberG is the foundation that will enable numerous services such as every market in which we operate. We remain strongly committed presiDent anD ceo 4 messaGe From the ceo messaGe From the ceo 5
  • 4. Our most relevant issues Engaging with stakeholders We work with our primary stakeholder groups, using our Group strategy and policies, to define the top areas of material relevance continuous dialog with stakeholders provides vital input to our previously we conducted an annual survey identifying the for our efforts in sustainability and corporate responsibility. sustainability and cr work. the ericsson strategy process aligns top-ranked social, environmental and economic issues for the business with stakeholder requirements by identifying gaps customers and investors. From 2009, we have included these continuing dialog and partnerships help ensure we focus on the issues that are vital to our core business and most relevant to key and setting objectives. our material impacts are regularly assessed questions in the major surveys that ericsson conducts. We also stakeholders. We also use market research, risk management and life-cycle assessment (Lca) to help us understand the trends, to maximize responsiveness and inclusiveness. measure employees’ views in annual surveys. challenges and opportunities affecting our company. these led to us identifying six core themes as the focus for our 2009 report. Key stakeholders include investors, customers, employees, see the key issues discussed in 2009 below. suppliers, industry partners, governments, consumer and business users of telecommunication services, non-governmental Enabling communication for all organizations, standardization bodies, research institutes and the media. connectivity and communications change lives for the better. We are creating sustainable growth for society and for our industry by making telecommunications summary of stakeholder engagement activities and issues more accessible and affordable for everyone. this is also an important part of our support of the millennium Development Goals (p.10). stakeholder group 2009 engagement activities Key issues identified how are we addressing the issues? investors and analysts • multiple one-on-one meetings • integration of cr into risk management • strong focus on supply chain, including prioritized • capital markets Day • Governance, e.g. corruption and supply commodities (p.15) Reducing our environmental impact • respond to investor questionnaires chain • energy consumption • independent assessment of code of conduct implementation by DnV (p.26) • employee anti-corruption training (p.25) • carbon footprint reduction targets (p.15) We are working constantly to improve the way we design and manufacture our products and solutions – the materials, methods and processes – and to make customers • meetings and workshops on energy, • importance of energy efficiency and carbon • carbon footprint reduction targets (p.15) supply chain, cr reporting and footprint • solutions launched for energy optimization (p.17-18) them more efficient, in order to reduce the impact we and our industry have on advisory services • how to measure energy efficiency • increased focus on energy/co 2 standardization (p.16) the environment (p.14). • customer requirements • brand risks associated with supply chain • commitment to e-tasc tool, so customers can access our • annual customer satisfaction survey management manufacturing site data electronically • cr projects and partnerships • rural, low-income business case • project for product take-back in non-Weee markets • occupational health and safety (ohs) • improved ohs reporting and ohsas 18001 certification (p.27) • sustainable cities and the 98 percent • rural business cases for operators • end of life treatment of telecom equipment Enabling a low-carbon economy employees • annual employee survey • identify the barriers to and benefits of video • increased focus on the direct impacts of our operations, e.g. • employee sustainability conferencing and working from home virtual meeting and collaboration tools to reduce travel (p.15) collaboration site • top 5 employee issues • all-employee sustainability and cr e-learning and information and communication technology (ict) can make a huge difference • sustainability and innovation • employee engagement engagement program for 2010 in the way we protect our planet. We are leading the world into the future with competition transformative, sustainable innovations that bring greater efficiency (p.19). suppliers • supplier audits, assessments • supplier code of conduct (including 2nd • benchmark supplier performance (p.26) • seminars on our code of conduct tier compliance) • increased focus on local sourcing and high-risk requirements and approach • network rollout and related h&s issues commodities and markets (p.26) • online code of conduct training • reduce carbon footprint • online code of conduct training for all suppliers (p.26) launched Conducting business responsibly industry partners • participate in industry initiatives on multiple topics • making communications more affordable and accessible • supported copenhagen communiqué and business call to action for mDGs • supply chain management • participated in steering group for Gsma Green manifesto a constant focus on the long-term integrity of our business benefits everyone in • use of ict to facilitate the transition to an • active participation in the formation of the ict4ee forum energy-efficient, low-carbon economy based on european commission recommendation the value chain. the ericsson Group management system (eGms), which includes • energy measurements • published white paper on calculating positive climate key corporate-responsibility-related policies such as the code of conduct, code impacts (p.19) of business ethics, and the environmental policy, help us maintain high standards Governments • public policy work, meetings with • importance of broadband and • participate in organizations such as the Global alliance across our operations around the world (p.24). regulators, research institutions and communication for all for the development for ict and Development (GaiD), (p.42) climate advisors of sustainable societies • published policy recommendations on the use of • outreach to governments in advance • encourage governments and regulators to broadband in creating low-carbon economy with WWF of cop15 to profile role of ict in increase licensing of spectrum • published white paper on how to calculate positive addressing the climate issue climate impacts • meetings with governmental bodies on e-health and m-health Empowering people consumer and • consumer research • impact of connectivity on improving lives • completed monitoring and evaluation program of business users and economic development millennium Villages with columbia university our people are what make us great, their diversity being a hallmark of our culture. • role of telecom in a carbon-lean society • completed socioeconomic study in sudan (p.10) We are committed to helping them fulfill their potential, with a work environment • electromagnetic fields (emF) • consumerLab study in india • radio waves and health information and research (p.25) that encourages innovation and stimulates creativity (p.28). nGos and international • engagement on various topics, such • increased requests for technological • engaged with nGos in letters to heads of government, organizations as telecom for carbon-lean economy assistance, support and partnership promoting the role broadband can play in sustainable (WWF) and cool it campaign • nGos would like to see more activity in use economic development (Greenpeace), and un agencies on of ict for low-carbon economies • published policy recommendations for use of telecom disaster management and m-health • the use of telecom for disaster with WWF management and m-health is untapped • public-private partnerships regarding telecom for disaster Caring for the community management and m-health standardization bodies • actively participate in • materials data handling • iec standardization of materials data handling around the world we are actively involved in addressing global sustainability standardization bodies • measurement specifications for climate • itu and etsi standardization of assessment methods change impact assessment and energy for environmental impact of ict services; and energy challenges at the local level. We also make the most of our expertise through efficiency measurement methods with several standardization bodies ericsson response, a worldwide employee volunteer initiative that provides research institutes • participate in international research • Future energy efficiency of • Lead role in earth project, an eu research initiative for communications for disaster-relief operations (p.34). telecommunication networks future energy efficiency of telecommunication networks 6 our most reLeVant issues enGaGinG With staKehoLDers 7
  • 5. activities around 5 DenmarK 7 eGypt the world We supported the WWF earth hour copenhagen campaign, held in conjunction with December’s the Green supply initiative has led to major improvements across the region, reducing the number of site visits, reusing equipment and cop 15 climate summit in the reassessing items reported as faulty. For more information on ericsson’s sustainability 4 Danish capital (p.35). and corporate responsibility activities around the world, visit Dominican repubLic indotel, with the support of ericsson www.ericsson.com/sustainability_corporateresponsibility and its customers, has been able to provide telephony and internet 8 access to 1.5 million people in the poorest areas of the country by the 6 morocco sixty classrooms in remote end of 2009 (p.12). itaLy areas of morocco are now the sicilian city of messina, hit by major connected to the internet and flooding in 2009, is trialing an ericsson equipped with interactive text messaging application to improve whiteboards (p.12). emergency mobile communication in the hope that it will better protect residents. 5 6 3 suriname For the people in the remote interior 1 of suriname, a solar-powered, 8 mobile voice and data network braziL from operator Digicel means 7 ericsson and Vivo are bringing communications with the rest of 13 mobile broadband connectivity to 14 4 the world for the first time. 12 inDonesia 30,000 people in 175 villages in the amazonian state of pará in brazil. indosat, indonesia’s second-largest the aim is to provide e-health and telecom operator, is bringing e-education services through 10 advanced location-based services mobile broadband (p.12). to its 29 million subscribers using 9 ericsson technology. 3 11 14 inDia students at indira Gandhi 2 national open university, the 13 2 peru 1 worlds largest, can download up to 50 remote villages are course material using an getting health, education and ericsson-developed 3G government services using environment (p.12). broadband communications provided by ericsson in a pilot project with telefónica and local nGo, sembrando. 9 sub-saharan aFrica We continue our partnership 11 with the earth institute and LaKe Victoria, aFrica local operators to provide 12 10 We are continuing to help save connectivity to more than aFrica lives and assist in development half a million people in the ericsson and key partners launched aFrica across the Lake Victoria region, millennium Villages across the Weather info for all initiative, which cyclist Kate Leeming is riding extending mobile network 10 countries in sub-saharan aims to ensure availability of accurate 24,000km across africa, including coverage for about 3.5 million africa (p.11). weather information through the visiting two millennium Villages, to highlight the needs of the continent. people across three states and installation of 5,000 automatic weather We are providing all of her launching a safety and security stations to those most vulnerable to communications equipment. initiative (p.11). climate change (p.11). 8 actiVities arounD the WorLD actiVities arounD the WorLD 9
  • 6. and ensure better household support in since the launch of the network in 2009, Millennium Villages times of need. they also make it easier to subscriber traffic has been steadily more than 500,000 people in rural areas in access information, health and education increasing: a clear indication of the need 10 countries in sub-saharan africa benefit services, and new business opportunities. for such basic services. the technology from mobile connectivity as a result of the is in place and success now depends on millennium Villages project. the various governments being able to enabling Lake Victoria establish a long-term search-and-rescue solution for citizens. Lake Victoria, africa’s largest lake, is home to a vital fishing industry with more than 70,000 boats; 35 million people live Weather Info for All communication along its shores in tanzania, Kenya and uganda. but catch rates are declining unpredictable and extreme weather takes due to overfishing and a lack of resource a huge toll each year on both lives and management. in addition, nearly 5000 die resources. better information and real-time in accidents on the lake each year. weather warnings help people prepare for all themselves, and can directly save lives. as part of the Lake Victoria project, which as part of our commitment to achieving began in 2007, we are working with the a 2009 report from the Global humanitarian the mDGs, we have been working with Gsm association and mobile operator Forum (GhF), the anatomy of a silent millennium promise, the earth institute at zain to expand mobile coverage and crisis, states that every year climate columbia university and african operators launch a search-and-rescue initiative. the change causes over 300,000 deaths, on the project since 2007. addition of 21 new sites in 2009 means seriously affects 325 million people, and We see that access to mobile communications is critical in breaking developing countries. mobile communication helps businesses that the network now covers 80 percent leads to economic losses of usD 125 billion. the poverty cycle in developing countries; the right tools can do better and encourages people to find new income sources. in 2009, connectivity reached 85 percent of the fishing zone with most activity. sub-saharan africa suffers almost 25 help people escape from poverty and achieve the un millennium it allows a farmer or fisherman to check current market prices so of the villages. continued traffic growth the network sites are powered by hybrid percent of these losses, and is at the most Development Goals (mDGs). they can take their goods to the appropriate market. indicates high demand for services. and solar solutions, keeping energy costs immediate risk of droughts and floods. consumerLab studies by ericsson and partners in countries such new businesses emerge, based on selling phones, top-up cards We also conducted a monitoring and and environmental impact down. the Weather info for all project – a as india, sudan and the Dominican republic, and in the millennium and providing battery-charging services, as well as internet kiosks. evaluation study of mobile communication’s partnership between the GhF, ericsson, Villages, show how mobile communication makes a difference. entrepreneurs in mayange, rwanda said they now earn 20 percent impact in the millennium Villages. the the World meteorological organization, more since the introduction of mobile communications. results showed that healthcare greatly our 2009 studies show how developing countries are using mobile the World bank, mobile operators zain, improved in all the villages in 2009, while communications to gain economic advantages and improve social Decreasing costs and collective methods of use are allowing orange and mtn and the earth institute toll-free emergency numbers improved interaction. the mobile phone is not just a convenience; it satisfies mobile phone technology to reach the bottom of the – aims to roll out up to 5000 automatic connectivity in health emergencies. a basic human needs and provides access to services like health- economic pyramid. mobile usage in bihar, india weather observation stations throughout conservative estimate based on interviews care, education and information supporting people’s livelihood. has boosted economic growth by 4 percent. africa. reusing infrastructure at new and with health workers suggests that existing mobile network sites, the stations our study with the Dominican republic’s ministry of health showed equipping them with mobile phones could will dramatically improve information crucial that the use of mobile phone applications for health data collection save 6000 lives per year in the studied to predicting and coping with climate cuts the collection and analysis time from days to minutes. countries. in Dertu, Kenya, an integrated shifts. the initiative also seeks to distribute m-health outreach program is treating the provision of education services is hindered in rural areas due the basic idea was simple: extended weather information by mobile phone. 1000 malaria cases each month. to costs, distance and a lack of infrastructure. in the Dominican mobile coverage will reduce loss of life initial deployment focused on the area republic, teachers said access to mobile communications had mobile phones are improving education, by enabling fishermen to call for help. a around Lake Victoria in Kenya, tanzania resulted in increased enrollment and retention of students. boosting teacher presence and teacher toll-free emergency number was launched and uganda. the first 19 stations established quality, and student attendance. in Dertu, in 2009. the project also seeks to increase a study by Deloitte showed that a 10 percent increase in there doubled the region’s weather- Kenya, the number of girls at school rose socioeconomic development and promote mobile penetration leads to a 1.2 percent rise in GDp in monitoring capacity. in 2010, additional significantly from two to 50 in the first a more sustainable fishing industry by stations will be deployed in east africa. month of mobile communications. school helping local businesses with information enrollment there tripled and dropout rates on fish and commodity prices, weather better weather information will assist fell by 85 percent. in some villages, half the alerts, safety bulletins, and by bringing national meteorological services to make teachers say they are now better equipped suppliers and customers together via more accurate forecasts. the use of to share knowledge with colleagues and mobile trade applications. mobile phones to distribute information to carry out their administrative duties. can help with storm warnings and disaster in conjunction with the national Lake this will potentially impact the quality of prevention, and also enhance economic rescue institute, a coordinated emergency primary education for 19.2 million children. opportunities for tens of millions of people, search-and-rescue service illustrates the with relevant information provided for small businesses are flourishing; two- potential of ericsson’s mobile positioning fisheries, agriculture and small business thirds of people have cut travel costs by system, a location-based solution that development. using mobile connectivity. respondents helps locate fishermen in distress. in reported saving usD 5 per trip outside the addition to this, the ericsson coordcom While the lack of weather information is village. interview data indicate that mobile solution can control and coordinate most serious in africa, the initiative is well phones help strengthen social networks rescue activities. suited to expansion to other regions. enabLinG communication For aLL 11
  • 7. more than 30,000 people who struggle We are cooperating with indira Gandhi Light to Rhamna to access healthcare, education and national open university, the world’s largest, morocco’s rhamna region spans 6000sq market-places. the few treacherous roads to build a 3G environment that allows km and is home to 300,000 people. the and the need for waterway transport students to download course materials area, close to the city of marrakesh, is adversely affect school attendance, for and get text message alerts. this mission, remote, and despite the rugged landscape example, as most children have to travel and india’s soaring mobile phone adoption most inhabitants work in agriculture. for hours to get to school. figures, will give students the flexibility to learn at their own pace, wherever they are. the aim is to use the internet to bring healthcare and education to those who indira Gandhi national open university are isolated and deprived of such services. has nearly 3 million enrolled students in together with brazilian operator Vivo and india and 34 other countries. the non-governmental organization saúde & alegria, we are heading a group of eight companies working to bring mobile Rural communities broadband to 175 villages in the region. get connected in the region’s inhabitants will be able to use Dominican Republic only 34 percent of the population attends m-health, mobile education and information secondary school and 60 percent cannot services. the services are possible with the Low mobile penetration, widespread poverty read or write; many children stay home to use of mobile applications and enablers and unclear business opportunities for help with chores. there is one doctor for such as the mobile survey tool. this enables operators were some of the barriers to every 10,000 people and only one dentist the collection and subsequent analysis of bringing broadband to the Dominican for the entire population. medical data in rural areas, for example, republic’s rural communities. the govern- as well as applications for monitoring ment’s regulatory agency, indotel, overcame starting in 2007, ericsson morocco these challenges with the innovative rural environmental impact, diagnosing patients, partnered with the rhamna Foundation, broadband connectivity program. smoothing the progress of communication maroc telecom, the moroccan ministry within the communities and running When indotel put out a tender in 2007, of education and the ministry of health studies to monitor the quality of life index. only 30 percent of the country’s 383 to bring mobile education to schools, m-health services to rhamna and mobile broadband infrastructure is municipalities had broadband capacity. m-learning services that help farmers operated and maintained by Vivo and the in 2009, the project provided telephony with harvesting. Vivo institute, which is responsible for the and internet access to approximately company’s social investments. Vivo will 1.5 million people and 508 communities, the project is called Lumière de rhamna mostly in the poorest areas. develop methodologies and practices or Light of rhamna. in 2009, the first for network learning, while ericsson will indotel worked with companies such as phase of the project linked 60 classrooms implement the necessary solutions, ericsson to demonstrate the technology’s to the internet and equipped them with services and applications. availability and convince operators of interactive whiteboards that connect to a computer and a projector. the goal has Local amazon villages can access the business opportunity. ericsson been to bring mobile education to 347 communication services for development helped prove that cost-effective mobile schools. the second phase will boost and fulfilling basic needs. equal access broadband technology is available to meet healthcare services and reduce the need to healthcare, education and information the connectivity needs of the country. for travel in the region by providing a will allow people to make a living and the second phase of the project will minivan transporting m-health solutions, contribute to the country’s development. start in 2010 with an additional 1000 a doctor and a nurse. the third phase will it also gives them tools to defend their rural communities. enable farmers to better harvest the land. natural resources and support the social and economic use of the territories. the project demonstrates the value of in late 2009, his majesty King mohammed broadband access in emerging markets. Vi visited the rhamna areas of bengrir it has, for example, had a significant and nzalt Laadem to see the project. he appreciated that teachers will have access World’s largest impact on students wanting to gain a university degree, and even enabled to distant classrooms with this connectivity, university goes some to get better jobs because they and that the same concept could be mobile have acquired new internet skills. brought to villages, providing farmers with broadband access has also helped to learning services, for example. With only 15 percent of students reaching boost people’s incomes, giving them high school, a shortage of teachers with access to up-to-date information and higher degrees, and 50 percent of college reducing their travel costs. professors with no master’s degree or phD, Reaching the Amazon the mobile phone is bringing university When completed, the project will the amazonian state of pará in brazil is studies to millions throughout india, while position the Dominican republic as the one of the most remote areas in the world. responding to the government’s work country with the best rural broadband the region of belterra in pará is home to towards promoting higher education. infrastructure in Latin america. 12 enabLinG communication For aLL