Ericsson (ERIC) 2014年CSR報告「NASDAQ」.pdf

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1、technology for goodEricsson Sustainability and Corporate Responsibility Report 2014Cover photo:Myanmar,a country undergoing democratic and social reform,has one of worlds lowest levels of mobile broadband penetration.ICT can play a huge role in boosting socio-economic development.In 2014,Ericsson be

2、gan serving customers in Myanmar,and also joined the UK Department for International Development to support girls education in the country.For reporting of suspected violations of laws or the Ericsson Code of Business Ethics,please email:To help us improve reporting and ensure transparency,we welcom

3、e your feedback and questions on our report and performance,please email:about this reportThis report,together with additional information avail-able online,summarizes our 2014 sustainability and corporate responsibility(CR)performance.Sustainability and CR are central to Ericssons core business and

4、 our commitment to the triple bottom line of responsible financial and environmental performance and socio-economic develop-ment.Our aim is to create positive impacts for our stakeholders and our business while managing environmental,social and ethi-cal risks.Conducting business responsibly is a top

5、 priority,and we take a full value chain perspective.We believe this approach delivers new business opportunities,greater efficiency,less risk,greater brand value,market leadership employer attractiveness,and boosts long-term competitiveness.UN Global Compact AdvancedEricsson is reporting for the th

6、ird year in a row according to the UN Global Compact(UNGC)Advanced Level criteria.UN Guiding Principles Reporting Framework With this report,Ericsson is the first in the ICT sector to report according to the new UN Guiding Principles(UNGP)on Business and Human Rights Reporting Framework launched in

7、February 2015.Report BoundariesUnless otherwise stated,all information and data pertains to activ-ities undertaken from January 1,2014,to December 31,2014.The report covers the Ericsson Group,i.e.Telefonaktiebolaget LM Ericsson and its subsidiaries.The Ericsson Annual Report 2014 provides informatio

8、n on Ericssons structure,nature of ownership and legal form,subsidiaries,as well as changes regarding size,structure and financial performance.Global Reporting Initiative(GRI)Index 3.0A GRI index for our performance in 2014 is on p.54.Technology for GoodBy 2020,90%of the worlds population will be co

9、vered by mobile broadband networks.This scale brings unprecedented opportu-nity to address global sustainable development challenges.In the Networked Society,Ericsson is the leading advocate of Tech-nology for Good.It is a concept we work with every day,and is the overarching theme of this report.ab

10、out ericssonEricsson is a driving force behind the Networked Society a world leader in communications technology and services.The Companys long-term relationships with every major telecom operator in the world allow people,businesses and societies to fulfill their potential and create a more sustain

11、able future.Ericssons services,soft-ware and infrastructure especially in mobility,broadband and the cloud are enabling the telecom industry and other sectors to do better business,increase efficiency,improve the user experience and capture new opportuni-ties.With more than 115,000 professionals and

12、 customers in more than 180 countries,Ericsson combines global scale with tech nology and services leadership.Investments in research and development ensure that Ericssons solutions and its customers stay in the forefront.The Company provides support for networks with more than 2.5 billion subscribe

13、rs.Approx imately 40%of the worlds mobile traffic is carried through networks delivered by Ericsson.Founded in 1876,Ericsson has its headquarters in Stockholm,Sweden.The Ericsson share is listed on Nasdaq Stockholm and NASDAQ New York.External Assurance and GRI Application Level A+This Report has be

14、en assured by PricewaterhouseCoopers,see Assurance Statement on p.56.The scope of the assurance by external auditor PwC includes an audit on Ericssons own CO2 emissions.The GRI G3 guidelines have been used in compiling this Report and a complete GRI compilation appears online.Ericssons Sustainabilit

15、y and Corporate Responsibility Report 2014 has achieved an A+application level,which means the Report has been exter-nally assured,and that the application level has been checked by a third party,PricewaterhouseCoopers.000-150Ericsson|Sustainability and Corporate Responsibility Report 2014icontentsA

16、bout Ericsson .iLetter from the CEO .2Letter from the VP of Sustainability and CR .32014 at a glance.4Strategy to drive positive change and reduce risk.6 Engaging with stakeholders .7Advocating for change .7Our most important sustainability impacts .8CONDUCTING BUSINESS RESPONSIBLYBuilding trust thr

17、ough responsibility.11Managing human rights challenges .12 Due diligence in the sales process .15Anti-corruption a top priority .16Proactive engagement on responsible sourcing.17Raising transparency on conflict minerals.19A strengthened approach to health and safety .20 People Our people anchored by

18、 core values .21 Building skills for the Networked Society .22 Committed to diversity and inclusion .23 Facts and figures.25 ENERGY,ENVIRONMENT AND CLIMATE CHANGEOn energy and climate,ICT enables transformation .27Assessing ICT sector carbon footprint .29 Rethinking energy performance .30Handling e-

19、waste responsibly.33Improving performance of our own operations .34Facts and figures .35 Enabling a low-carbon economy Enabling a low-carbon economy.36 Intelligence in the grid .38 Transport shifts gears.39COMMUNICATION FOR ALLConnecting the unconnected .41Mobile money meets needs of unbanked .42Bri

20、nging 4G to Peruvian Amazon .43Connecting community kiosks in Africa.43Extending the reach of Connect To Learn.44Ericsson Response.46Reconnecting families .47Transforming young lives on path to peace.48Breaking down barriers .49In recognition .51 Objectives and achievements .52GRI Index .54Auditors

21、Combined Assurance Report .56Engage with us .57264010Our key objectives and achievements are on pages 5253.We also report progress on earlier objectives through-out the report,noted on various pages with the following icon.1Ericsson|Sustainability and Corporate Responsibility Report 2014Letter from

22、the CEOWelcome to our 2014 report.Never in human history have we been more connected.In a few years,90%of the worlds population will have access to mobile communications.Thats a stagger-ing development,changing every aspect of our lives.In the Networked Society,everyone and everything will be connec

23、ted in real time.As a leading ICT company,our role is to drive this transformation,opening up new ways to innovate,to collaborate and to empower people,business and society.We want to ensure that connectivity paves the way for environmentally sustainable and equitable social and economic development

24、.Driving positive changeOur ambition at Ericsson is to be a respon-sible and relevant driver of positive change in the Networked Society.From climate change and poverty reduction to urbani-zation,the major challenges confronting our world require transformative,not inc re-mental,solutions.Small step

25、s forward wont deliver the necessary scale to find effective solutions to pressing global issues.The global community is charged with car-rying on the work of the Millennium Devel-opment Goals beyond 2015.Any future vision of sustainable development must be linked to technology transformation.As cha

26、ir of the Working Group for Sus-tainable Development and the Post-2015 Development Agenda of the Broadband Commission for Digital Development,during 2014 I led the work on a new report“Means of Transformation.”Our aim is to spur the international community to act swiftly to capture the unrealized po

27、tential of ICT and broadband to enable the post-2015 development agenda and help build a more inclusive,sustainable society.My contribution to the Leadership Council of the UN Sustainable Development Solutions Network is to help ensure that viable solu-tions are part of this framework.A transformati

28、ve technologyMobility,broadband and the cloud are transforming industries.Utilities are deploying smart metering to save electric-ity costs and reduce carbon emissions while connected cars enhance safety and enable electric vehicle charging.Smart grids and more efficient public transport ease the ch

29、allenges of urbanization.Technology is also transforming how we meet basic needs.In Connect to Learn,now in 21 countries,we partner in a public-private initiative using cloud-based ICT solutions to deliver high-quality secondary education worldwide while highlighting the need to improve access to ed

30、ucation for girls.With 2.5 billion unbanked people globally,our mobile money platform is addressing the challenge of financial inclu-sion.Community health workers equipped with mobile phones in the devastating Ebola fight are better able to save lives.These are the kind of impacts that illustrate th

31、e power of Technology for Good,and in 2015 our initiatives aim to impact more than 5 million people.Sustainability at the coreAt Ericsson,sustainability and corporate responsibility are integrated in our corpo-rate strategy.Our aim is to continuously improve our sustainability performance in areas s

32、uch as good governance,responsible sourcing,and health and safety to minimize risks to our,and our customers,brands and earn the trust of our stakeholders.Ericsson continues to support the ten principles of the United Nations Global Compact and the UN Guiding Principles for Business and Human Rights

33、(UNGP),and we were first in our sector to use the new UNGP Reporting Framework.We think this is important because while human rights such as freedom of expres-sion and the right to privacy are enabled by ICT,there is also a risk the technology can Hans VestbergPresident and CEObe misused.We are work

34、ing to ensure greater privacy and security in our net-works,and are active in multi-stakeholder dialogue to address concerns.Steady progressAs described throughout this report,in 2014 Ericsson made considerable prog-ress with sustainability and CR,although there is much left to do.Our targets are de

35、signed to indicate our priorities,both in terms of reducing risks,and increasing positive impacts,and we continue to deliver real performance.As Ericssons most significant environmental impact is the energy used by our products in opera-tion,we put heavy emphasis on helping customers optimize their

36、networks.Our new Ericsson Radio System provides a 50%improvement in energy efficiency.We also seek to reduce the carbon footprint of our own performance.We are on track towards our objective to maintain absolute CO2e emissions from business travel,product transport and facilities at 2011 levels up t

37、o 2017.This equates to a reduction of 30%CO2e per employee,and this year,we reduced emissions by 10%CO2e per employee.To accelerate action towards a low-car-bon economy,we also set a new goal this year to help other sectors of the economy reduce societal carbon emissions by a fac-tor of 2 relative t

38、o Ericssons own carbon emissions in 2014.We will do this by imple-menting ICT-enabled solutions such as smart meters and smart transport solutions.Scaling positive impactThis is only the very start.ICT-enabled solutions can and should be a powerful tool for sustainable development.By enabling every

39、area of society to use mobility,broadband and the cloud to address global challenges,we can ensure our sectors legacy is a positive one.Hans VestbergPresident and CEO Any future vision of sustainable development must be linked to technology transformation.”2Ericsson|Sustainability and Corporate Resp

40、onsibility Report 2014Dear stakeholders,Two decades of strong commitment to sustainability and corporate responsibility(CR)has launched Ericsson on a business mission to positively impact the world around us.Each year brings new chal-lenges and opportunities,but over time,sustainability and CR have

41、become an inte-gral part of our mindset and identity,and the impact we want to have on the world.Establishing strong foundationsOur vision to be a responsible and relevant driver of positive change in the Networked Society starts with conducting business responsibly.If we dont get this right,it will

42、 be difficult to succeed in an increasingly transparent Networked Society.This is of growing importance to our stakeholders,and Ericsson aims to raise the performance bar each year in areas like human rights,responsible sourcing and anti-corruption.Equally important is our focus on energy,the enviro

43、nment and climate change and ensuring the benefits of mobility reach everyone.We have tar-gets in all areas that help guide our work and measure performance.Embedding sustainability and CROne of our key aims is to embed sustain-ability and CR in everything we do.It is integrated into our business st

44、rategy and our portfolio as a key business factor,and 2014 saw many exciting portfolio develop-ments.Financial and social inclusion for the 2.5 billion unbanked is a central focus of our mobile commerce business.Our TV Anywhere solution can be brought to even the remotest corners of the world over m

45、obile broadband.To help shape the low-carbon society of the future,our Industry&Society portfolio offers viable solutions for the utility and transport sec-tors like smart grids and our Connected Vehicle Cloud.Technology for GoodProviding affordable and accessible mobile broadband can help break the

46、 cycle of poverty for millions of people around the world.Despite rapid growth of the ICT industry,today,more than 4 billion people do not have access to the internet.In the 48 Least Developed Countries,90%of the population is unconnected.Market forces alone cannot address the main barriers to progr

47、ess:infrastructure,afford-ability and usage.Greater joint efforts are needed by industry,governments and others to close this gap.As the leading advocate for Technology for Good in the Networked Society,we use our technology and solutions to address global sustainable development challenges.In 2014,

48、we scaled up our education solu-tion Connect to Learn,and secured our first large-scale engagement with a national development agency(DFID in the UK)to expand secondary education to thousands of marginalized girls in Myanmar.Tackling the challengesDespite great progress in our sustainability and CR

49、aims,we also met new challenges,in areas like privacy and freedom of expression,reducing health and safety incidents in the supply chain,and setting more realistic levels for the volumes of e-waste collected.We also need more women in the ICT sector,an industry chal-lenge that we work with others to

50、 tackle.But addressing these challenges can also result in new opportunities to build trust among our stakeholders.Our ability to meet expectations is increasingly important in handling emerging risks and challenges.For example,telecom is a powerful enabler of human rights,but certain functionality

51、can also be misused.We acknowledge mounting concern among investors,customers,civil society and other stakeholders about the complex issues surrounding privacy,surveillance,cybersecurity and freedom of expression in the ICT sector,and in 2014 we signifi-cantly increased our stakeholder engage-ment a

52、nd outreach on these topics.An untapped potentialICT and broadband are increasingly inte-grated into every aspect of the global economy as a vital part of modern infra-structure.As a technology advocate,I know what a huge impact ICT can have on each one of the 17 proposed UN Sustain-able Development

53、 Goals.It seems obvious to me,and many others in our industry,that ICT should be a central element in any framework for addressing sustainable development.But technology is rapidly evolving and not everyone has understood its full potential.The UN and other organizations have an enormous opportunity

54、 to make this link between existing technologies like ICT where industry and governments have invested billions,if not trillions,and national and global sustainable development plans.There are some quick wins to be gained,for example,in climate change,by engag-ing more with the ICT sector and its so

55、lu-tions-based approach.In closing,whether it is stakeholder consultation,customer engagement,or public-private partnerships,more multi-sector engagement is crucial for providing leverage,impact and scale to many of the areas presented in this report.By working with others,we develop a true understa

56、nd-ing of the trade-offs and impacts our busi-ness has in the world.With this insight and our commitment,we strive to be positive change-makers in the Networked Society.Elaine Weidman-GrunewaldVice President,Sustainability and Corporate ResponsibilityLetter from the VP of Sustainability and CRElaine

57、 Weidman-GrunewaldVice President,Sustainability and Corporate Responsibility We strive to be positive change-makers in the Net worked Society.”3Ericsson|Sustainability and Corporate Responsibility Report 20142014 at a glance Energy,Environment,Climate CHANGEConducting Business Responsiblytonnes e-wa

58、ste collected10,000 10%CO2e reduction per employee98%recycling of materials through product take-back71%ICT company to report according to the UN Guiding Principles on Business and Human Rights Reporting Frameworkof Ericsson employees feel that the Companys efforts on sustainability and corporate re

59、spons ibility have increased their overall job satisfaction (15%above external benchmark)Communication for Allregistered in Refugees United databaseConnect To Learn now in 21 countries350,000Overto find separated familiesOver4Ericsson|Sustainability and Corporate Responsibility Report 2014Global gre

60、enhouse gas emissions continue to rise and we face steep financial risk if we do not mitigate them.The business case for action to mitigate climate change has never been stronger or more urgent.For this reason we congratulate Ericsson that has achieved a position on The A List:The CDP Climate Perfor

61、mance Leadership Index.Ericsson is responding to market demand for environmental accountability and at the same time is making progress towards the realization of sustainable economies.”The UN Guiding Principles Reporting Framework is a ground-breaking and vital tool for companies like Ericsson to k

62、now and show that they are managing risks to human rights effectively throughout their operations and value chain,with the potential for positive impact on millions of peoples lives.”Ericssons contribution of ICT tools and training is helping the Whitaker Peace&Development Initiative create a truly

63、connected Youth Peacemaker Network in South Sudan,Uganda and Mexico.Their commitment allows us to advance our shared goal to collectively make the world a place where peace,hope and reconciliation can be communicated to all,one connection at a time.”Ericsson Radio System provides a 50%improve-ment i

64、n energy efficiencymillion tonnes CO290,000employees have taken anti-corruption trainingPaul Simpson,Chief Executive Officer of CDPCaroline Rees,President of ShiftForest Whitaker,Founder and CEO of The Whitaker Peace&Development Initiative;UNESCO Special Envoy for Peace and Reconciliation50%“Zero In

65、cidents in High-Risk Environments and Occupational Health&Safety”program established1.4Estimated carbon reductions in 2014 from two Ericsson selected offerings 4people positively impacted through our Technology for Good initiativesmillion5Ericsson|Sustainability and Corporate Responsibility Report 2

66、014strategy to drive positive change and reduce riskOur sustainability and CR strategy Our Sustainability and CR strategy is focused on driving positive change in three main areas:Responsible Business Practice,Energy,Environment and Climate Change,and Communication for All.Each area includes specifi

67、c goals upon which we measure progress year on year.Trusted partner by conducting business responsiblyImprove performanceof our own operationsDemonstrate ICT and low-carbon benefitsEnergy,Environment and Climate ChangeCommunication for AllResponsible Business PracticeUndisputed leader inenergy and e

68、nvironment Technology for GoodImpact and Scale An important part of Ericssons ambition is to be a responsible and relevant driver of positive societal change.Our commitment to sustainability and CR is essential to achieving this ambition,and to create value for our employees,custom-ers,shareholders

69、and society.As a leader in the ICT industry,our aim is to provide significant and measurable contributions to a sustainable Networked Society.The Networked SocietyThe Networked Society goes beyond more than 50 billion connected devices.It is the result of people starting to use those con-nections to

70、 make their lives,businesses and society better and more efficient.We facilitate this development through our ideas and solutions,our products and services,and our partnerships.In our vision of a Networked Society,every person and every industry is empowered to reach their full potential.We believe

71、a better,more sustainable world will take shape when 21st century infra-structure is used to deliver services more effectively and promote social inclusion.Integrated across the businessSustainability and CR is integrated in Ericssons business strategy,target-setting and risk management process whic

72、h involves Regions,Business Units and Group Functions.GovernanceSustainability and CR policies are part of our governance system and applied glob-ally across the business.These include the Sustainability Policy,Code of Conduct,Code of Business Ethics and Occupational Health and Safety Policy.The Cod

73、e of Busi-ness Ethics is periodically acknowledged by all employees.The Ericsson Sustainability and CR Steering Group is comprised of senior executives who approve the strategy and targets that support our commitments.For more information on governance,see p.11.Measuring progress To track our perfor

74、mance,we report on a range of objectives,risks,and achieve-ments associated with our most material issues and aim for continuous improve-ments over time.Focused strategy Our Sustainability and CR strategy(see below)remains constant,focused on reducing risks and increasing posi-tive impacts in societ

75、y.Ericssons ambitionGrow faster than the market with best-in-class marginsCustomerLeading ICT transformation partnerEmployeesAttract,develop and retain best talentShareholderShareholder value creatorSocietyResponsible and relevant driver of positive change6Ericsson|Sustainability and Corporate Respo

76、nsibility Report 2014engaging with stakeholdersAdvocating for changeListening to,and learning from,stake holders helps address shared challenges,and find common solutions.Engaging with stakeholders is an inclusive and continuous process that allows us to build relationships and create mutual under-s

77、tanding.Our stakeholders include employ-ees,investors,customers,suppliers,gov-ernments,civil society,non-governmental organizations(NGOs),industry partners,media,academia,and consumers.Woven into daily businessInteractions with stakeholders are part of the day-to-day operations of our business.We re

78、ach out to stakeholders through a variety of means such as employee dialogues,joint projects and initiatives;customer meetings;investor meetings;surveys,membership in industry groups and representation on decision-making bodies or academic research.Other inter-actions include in-person meetings,onli

79、ne dialogues,consultation with affected stakeholders,and formal public reports.We engage with customers on many issues,including supply chain management,energy efficiency and our Technology for Good programs.We leverage our social media to extend the conversation.Strengthening approachIn 2014 we dev

80、eloped a more detailed pro-cess for stakeholder engagement,in order to ensure that we are transparently com-municating and reporting about these issues in a relevant,meaningful and trans-parent way.One of the focus areas was the management of CR risks,including human rights.Focus areasStakeholder en

81、gagement also contributes to better management of CR risks,and one particular focus area for Ericsson in this regard is human rights(p.12).Other CR risks areas we address through stake-holder engagement include responsible sourcing,corruption,health and safety,conflict minerals,and handling of e-was

82、te.Ericsson takes an active role in advocating for ICTs transformational role in sustain-able development.This includes connect-ing the unconnected as well as scaling up access to education,reducing carbon emissions,and contributing to sustainable urbanization,womens empowerment,peacebuilding and hu

83、man itarian response.Focus areas include:Highlighting broadbands role in sustainable development:The Working Group on Sustainable Development of the Broadband Commission for Digital Develop-ment,chaired by Ericsson CEO,published a new report in 2014“Means of Trans form-ation,”highlighting ICTs role

84、in proposed new Sustainable Development Goals.Conducting business responsibly:Human rights,anti-corruption,and responsible sourcing are among our focus areas.In 2014,for example,we partici-pated in a case study by the Institute for Human Rights and Business(p.13)to further multi-stakeholder dialogue

85、 on human rights challenges in the ICT sector.Supporting UN initiatives:Ericsson is involved with advocacy and solutions in many UN initiatives,including the Leader-ship Council of the UN Sustainable Devel-opment Solutions Network,which gathers academia,civil society and the private sector to mobili

86、ze action on sustainable development(p.44)and Together for Safer Roads,a coalition launched in 2014(p.39).Expanding humanitarian response:We see huge potential for ICT to help address crises from health to refugees and disaster response.We are a member of the UN Emergency Telecom Cluster and in 2014

87、,we launched a partnership with the Inter-national Rescue Committee(p.46).World Economic Forum:As a part-ner of the World Economic Forum,we join other leading global companies to support a commitment to improve the state of the world.Sustainable development is one of our key focus areas.Many other a

88、dvocacy initiatives are described throughout this report.Engaging with stakeholdersA.With Whom companies need to engageB.About What issues companies need to engageC.How engagement should take placeD.When engagement should take placeE.Corporate/Policy Level engagementF.Internal engagementG.Engaging N

89、eutrals when necessaryIn our approach to stakeholder engagement,we carefully consider each step of the process in order to achieve the greatest impact.7Ericsson|Sustainability and Corporate Responsibility Report 2014LOWHIGHHIGHImportance to EricssonAssess and engageAssessActively address and engageA

90、ddressEngage when appropriateInterest to stakeholdersOur most important sustainability impactsA materiality assessment is a vital element in our sustainability and CR strategy,reporting,and target-and risk-setting process.We look at the economic,environmental and social impacts most significant to o

91、ur business,and those that substantively influence the assessments and decisions of stakeholders.Conducting business responsibly*1 Anti-corruption2 Unintended use of ICT3 Radio waves and public health4 Respect Human Rights5 Child labor6 Information security (including cybersecurity)7 Right to privac

92、y8 Forced labor9 Freedom of association10 Policy engagement and advocacy11 Responsible sourcing12 Tracing of conflict minerals13 Diversity and inclusion14 Occupational health and safety15 Employee engagement16 Responsible land use17 Product information and labeling18 Responsible tax19 Freedom of exp

93、ressionEnergy,environment and climate change*20E-waste management21Biodiversity22Emissions(effluents,air emissions other than GHG)23Environmental legal compliance24Waste management (office and production)25Water consumption26Ericsson carbon footprint27Climate change28Product energy performance29Use

94、of renewable energy30Hazardous substances avoidance31Efficient use of materials (excluding hazardous)32ICT contribution to low-carbon economy33Energy consumption (Ericsson own activities)34Smart citiesCommunication for all*35 Disaster response36 Access to education37 Digital inclusion38 ICT socio-ec

95、onomic impact39 Access to communication40 Access to healthcare41 Peace building and conflict resolution1114761914181531310916517212522242934332628322023383739353641403031822712*Numbering for reference in the graph,not in order of importance.8Ericsson|Sustainability and Corporate Responsibility Repor

96、t 2014Ericsson regularly reviews issues to ensure our materiality assessment captures the aspects most vital to our sustainability impacts.Prioritizing helps us make better decisions and guides our strategic choices.Gathering insightThis year we took into account the Global e-Sustainability initiati

97、ves(GeSI)updated materiality assessment for the ICT indus-try,to which Ericsson contributed.Notable issues highlighted in the assessment include additional privacy,human rights and waste concerns,as well as recogni-tion that the Internet of Things the inter-connection of various objects,devices and

98、applications through wireless commu-nications is in fact becoming a reality.Ericsson identifies stakeholders and their significance to the business and incorporate stakeholder perspectives in our work.Prioritizing issuesWe use previous materiality assessments as the starting point to rank issues in

99、order of importance and then include updates based on developments during the year.We take into account upstream and down-stream material issues across the value chain.Life-cycle assessment helps to identify and measure opportunities to decrease negative environmental impacts.Human Rights Impact Ass

100、essments help identify salient human rights issues.We actively address issues deemed most material to Ericsson.We manage efforts to tackle the issue,and investigate,steer and/or implement new governance procedures to ensure business sustain-ability and accountability.We also engage on this set of is

101、sues with stakeholders,through dialogue and advocacy,to demonstrate the positive socio-economic and environmental effects of mobility,broadband and the cloud.Issues in which we assess and engage are those rising in importance for Ericsson and stakeholders.We assess by reviewing and monitoring the ev

102、olution of an issue and we report on our performance in these areas.For some issues,we address and engage when appropriate.Issues which we assess are important and we have procedures in place to ensure that we are working according to our stakeholders expectations on these issues.Stakeholders genera

103、lly require less disclosure about performance in these areas as they are aware of our standards and express confidence in our ability to adequately address them.Right to privacy rising on agendaThe ICT sector is facing new challenges arising from the use of technology nota-bly the convergence of pre

104、viously separate industries such as telecoms,data man-agement and media.“Big data”provides opportunities for improving efficiencies and gaining business insights.It can also pose societal risks if misused.We have identified the right to privacy as one of Ericssons salient human rights issues,and rec

105、ognize that it is important to stakeholders as well.Privacy and security issues affect businesses as well as individ-uals,particularly as commerce becomes increasingly digitized.We are committed to good governance and responsible business practices in this area,as well as to multi-stakeholder dialog

106、ue.See further discussion on our approach to human rights(p.12).New technologies and capabilities across the ICT sector mean that more aspects of our lives are becoming connected,and with that arises new challenges.The trend towards a digitized society is increasingly placing empasis on the right to

107、 privacy.Ericsson has intro-duced a Privacy by Design Framework,which ensures privacy is considered from the beginning of any product release and made an integral part of the product devel-opment process.The technological and legal implications of the right to privacy must be understood and addresse

108、d by all sectors involved in the debate.We will continue to be engaged in that dialogue.56%of smartphone ownerswould like communication to beEC PT3dSource:Ericsson ConsumerLab report,10 hot consumer trends 2015.9Ericsson|Sustainability and Corporate Responsibility Report 2014conducting business resp

109、onsibly10Ericsson|Sustainability and Corporate Responsibility Report 201410Ericsson|Sustainability and Corporate Responsibility Report 2014Conducting business responsibly is the foundation of our com-mitment to sustainability and corporate responsibility.Integrity,transparency and responsibility cha

110、racterize the way we conduct business.It is critical to maintaining trust and credibility with customers,partners,employees,shareholders and other stakeholders.Governance frameworkEricsson has Group policies,processes and directives within responsible sourcing,occupational health and safety(OHS),env

111、ironmental management,anti-corruption and human rights,and other areas.The Ericsson Group Management System includes the Code of Business Ethics,Code of Conduct,OHS policy,and Sustainability Policy.We are committed to uphold the UN Global Compact Principles and to implement the UN Guiding Principles

112、 on Business and Human Rights throughout our busi-ness operations.Under our Global Assessment Program,an external assurance provider audits the implementation of these policies and directives,management of risks and achievement of objectives.Policies are regularly reviewed;several were strengthened

113、in 2014.Code of Business EthicsOur Code of Business Ethics sets the tone for how we conduct business globally.It is acknowledged by all employees at the time of employment and repeatedly throughout the term of employ-ment.We have zero tolerance for corruption and bribery,and have set high standards

114、within the areas of responsible sourcing,the environment,occupational health and safety,human rights and labor across our operations.Strengthened focus on human rightsEricsson respects all internationally proclaimed human rights and strives to ensure that we are not complicit in human rights abuses.

115、In 2014,we embedded a stronger human rights focus in our Code of Business Ethics and Code of Conduct(p.12).The Code of Conduct was strengthened with stronger labor standard protection in accordance with UN and customer require-ments,including reference to the process for reporting violations,and req

116、uirements on suppliers to report breaches of the Code of Conduct.All employees are offered online training on sustainability,anti-corruption and other CR issues.About 90,000 employees have taken the anti-corruption training to date,which covers poli-cies and requirements and explores challenges and

117、dilemmas.In addition,specific training on human rights issues are provided for certain functions where human rights issues are especially relevant,for example,Sourcing,Security and Legal Affairs.Top-level commitmentThe CEO and senior management actively support the commit-ment to responsible busines

118、s and are regularly informed of prog-ress.Sustainability and CR objectives are part of the Ericsson Group 2014 balanced scorecard.A cross-functional Sustainability and CR Steering Group provides guidance for strategic and oper-ational issues.The Board of Directors of the Parent Company is briefed tw

119、ice a year on sustainability and CR matters;more often if needed.In 2014,briefings covered sustainability and CR strategies and risks,performance,internal operations,OHS,environment,human rights challenges,and sales compliance processes and results.Building trust through responsibilityOur solid comm

120、itment combined with our culture and core values support our responsible business approach to deliver long-term business benefits.11Ericsson|Sustainability and Corporate Responsibility Report 2014Managing human rights challengesMany fundamental human rights such as the right to health,educa-tion,fre

121、edom of assembly and freedom of expression are enabled through ICT.At the same time,the Networked Society can also give rise to specific human rights challenges.Recognizing both the opportunities and the challenges,Ericsson is working actively to address human rights.Spotlight on most salient issues

122、The new UN Guiding Principles(UNGP)on Business and Human Rights Reporting Framework states that a companys salient human rights issues are those human rights that are at risk of the most negative impact through the companys activities or business relationships.Ericsson has defined our salient human

123、rights issues.These are the right of freedom of expres-sion,the right to privacy,and labor rights.These are highlighted in the Code of Busi-ness Ethics and Code of Conduct.We identify these issues from various input:our own assessment of impacts,external stakeholder views resulting from Human Rights

124、 Impact Assessments in higher-risk environments(p.14),broader stakeholder consultations and industry initiatives.We may identify other human rights issues to be salient over time.Growing stakeholder concerns point to the need for more transparency,construc-tive discussion and clear guidance on good

125、corporate conduct and due diligence on human rights and appropriate limits of government control over communication services.More clarity is needed on expec-tations and responsibility of companies,and what constitutes effective oversight of laws governing interception and surveil-lance of data to pr

126、eserve public safety and national security interests(referred to as lawful interception).We held and engaged in several stakeholder consultations during 2014 to address these issues(p.14).Rising societal concernsTechnology is used by governments to fight crime and to assist in life-saving emergencie

127、s.Despite the benefits,in some cases it can also be misused to restrict human rights,and can infringe on an individuals right to privacy.Concern around surveillance,mining of personal data and cyber-attacks is rising.It is essential that the right to privacy is protected so that users and their data

128、 are secure and rights are protected.Ericsson works to ensure appropriate lev-els of security in our products,and a range of tools are deployed to ensure security solutions and safeguarding of network operations.This is outlined in the Ericsson white paper,“Guiding Principles for Secu-rity in a Netw

129、orked Society.”We engage in stakeholder dialogue in Myanmar,a country undergoing rapid change.12Ericsson|Sustainability and Corporate Responsibility Report 2014 ViewpointThe impact of ICT on human rights is generally positive,but its increas-ing use by governments and business to acquire data create

130、s a complex inter-relationship.Awareness of the risks associated with information and communi-cations technologies has grown in recent years.The indeterminate period for which data is stored online raises a whole set of issues,particularly for the right to privacy.The implications of these developme

131、nts are not fully or widely under stood.The ICT sector needs to do more to find a unified response to such challenges,and ideally this should be done in consultation with stakeholders includ ing civil society and other experts.Those dialogues are happening,and we are involved in some of them.Ericsso

132、n,and other companies in the ICT sector,are well served by having dilemmas around human rights publicly discussed.Com-panies cannot effectively deal with these issues if they are kept secret or confidential.Ultimately,while companies can institute best practices and due diligence,judicial oversight

133、is crucial.This requires the right regulatory framework with human rights protection at its core.”John Morrison is the Executive Director of the Institute for Human Rights and Business.Reporting violationsWe recognize the importance of having processes in place to provide or enable remedy in the cas

134、e of negative human rights impacts related to business activities or relationships.Possible violations of the Ericsson Code of Business Ethics,includ-ing human rights issues,can be reported through our whistleblower procedures pub-licly available on our website.A transition to a third party-managed

135、whistle blower process is planned for 2015(p.16).Embedding a Human Rights frameworkSince 2011,we have been working to inte-grate the United Nations Guiding Princi-ples on Business and Human Rights into our governance framework.Since 2012 we have been active with the Business Learning Program of the

136、non-profit center for business and human rights,Shift,to embed a human rights framework across the company.Our human rights due dili-gence covers areas such as Sales,Sourc-ing and Legal Affairs.In 2014,we reviewed and further strengthened the human rights aspects of our due diligence regarding merge

137、rs and acquisitions.UNGPs new reporting frameworkEricsson is using the opportunity in this report to start applying the UNGPs Reporting Framework,launched in Febru-ary 2015 as the first comprehensive guid-ance for companies to report on human rights issues in line with the Guiding Princi-ples.The Fr

138、amework was developed by Shift and international accountancy firm Mazars.We are the first ICT company to apply the framework and also among the first companies to do so overall.We will be building on this years experience in our future reporting.Digital DangersEricsson was the focus of a 2014 case s

139、tudy on human rights by the Institute of Human Rights and Business(IHRB)in their“Digital Dangers”series.The study explored challenges facing network vendors,and how they can reduce the risk of misuse of telecommunications systems,and in par-ticular lawful interception systems.The Case Study Number 2

140、NOVEMBER 2014 Case Study:EricssonHuman Rights Challenges for Telecommunications Vendors:Addressing the Possible Misuse of Telecommunications Systemsanalysis of Ericssons sales compliance process(p.15)highlighted a number of best practices,including escala-tion of issues,and requiring end user statem

141、ents as part of all sales that describe approved uses of the product or service to help track prod-ucts and performance.The authors also called for gov-ernments to clarify rules for companies providing technol-ogies which can be used in ways that undermine respect for human rights and to bear in min

142、d their own duty to pro-tect against human rights abuses involving non-state actors such as com panies.The report also highlighted the importance of multi-stakeholder dialogue,an area in which we are deeply engaged.“Ericssons due diligence processpoints to processes companies can embed into operatio

143、ns to give proper consideration to human rights risks,”the study stated.13Ericsson|Sustainability and Corporate Responsibility Report 2014Assessing our HUMAN RIGHTS impactEricsson has customers in more than 180 countries,with different cultures,legal sys-tems and other factors impacting society and

144、the business environment.Group poli-cies and directives regarding human rights governance apply to our global operations.Identifying the issuesWe conduct Human Rights Impact Assessments(HRIA)in accordance with the UNGP as part of our human rights due diligence and to help identify salient human righ

145、ts issues.The HRIA covers adverse human rights impacts that Ericsson may cause or contribute to,through our own activities,or which may be directly linked to our operations,products or services by our business relationships.The aim is to ensure that we respect human rights within the scope of our bu

146、siness opera-tions and describe the social,operational and human rights context for doing business in the country.Continued focus on MyanmarThe work with the recommendations from the HRIA in Myanmar has continued during 2014.At the stakeholder consultation con-ducted in Myanmar during the summer of

147、2014 one issue raised was labor condi-tions and safety,particularly in the supply chain.Focus on these issues has been highlighted during 2014,for example,when conducting audits.Several internal processes within Ericsson regarding the right to privacy have also been strength-ened during 2014 as one

148、result of the work with the HRIA for Myanmar.HRIA initiated in IranIn Iran,where Ericsson has had customers for over 100 years,a HRIA was initiated in 2014.In light of international develop-ments,we are engaging with existing cus-tomers,and exploring opportunities with new customers in Iran,while ev

149、aluating the human rights situation and continuing to monitor international developments.Prioritized areas for action identified in the HRIA include:occupational health and safety sourcing and supply chain management security trade and sales com pliance discrimination We will implement the recommend

150、ations from the HRIA into our processes and management systems to ensure continu-ing attention to addressing and tracking human rights challenges.consulting stakeholders We support discussions on finding ways to manage emerging dilemmas through greater transparency,collective action and a clear regu

151、latory framework.The initial results of our HRIA in Myanmar were shared in stakeholder con-sultations in both Stockholm and Yangon.Stakeholders included investors,the government,customers and local civil society participants.In 2015 stakeholder consultation on the HRIA for Iran took place.The outcom

152、e of these stakeholder consultations are an important contribution to the final list of identified mitigation measures.The HRIA process is a learning experience for the company that we will continue to build upon,in Iran,Myanmar,and potentially other markets.Right to privacy focus at Wilton ParkWe p

153、layed a leading role in convening a multi-stakeholder roundtable on privacy,security and surveillance with the Institute for Human Rights and Business(IHRB)held at strategic forum Wilton Park in the UK.Participants addressed growing challenges and dilemmas around right to privacy,freedom of expressi

154、on,security and lawful intercept,and finding the appropriate balance between privacy rights,freedom of expression and security.The input from the round table discussion provided vital insight for Ericssons continued work with human rights.Part of our long-standing collaboration with IHRB was our par

155、ticipation in a 2014 case study on managing human rights dilemmas,(p.13).GeSI working group on human rightsEricsson is also a member of the Global e-Sustainability Initative(GeSI)working group developing an action plan to provide leadership in addressing human rights in the ICT sector.The group is f

156、ocused on prioritizing action on human rights impacts;applying a human rights lens to emerging technologies and their applica-tion;the future of responsible sourcing in the ICT sector,and building capacity in emerging markets.Ericsson has served customers in Iran for over 100 years.14Ericsson|Sustai

157、nability and Corporate Responsibility Report 2014Due diligence in the sales processHuman rights considerations are an integrated part of Ericssons sales process.Human rights risk management is embed-ded into our operations through our sales compliance process.This is particularly relevant for the co

158、ntinuing assessment and prevention and mitigation of potential impacts related to freedom of expression and privacy.A Sales Compliance Board,supported by a Sales Compliance Core Team,governs the process.The cross-functional,senior-level Sales Compliance Board represents Legal Affairs,Trade Complianc

159、e,Government and Industry Relations,Sales,Marketing and Communications,Business Units,and Sustainability and Corporate Responsibil-ity.It meets bi-monthly to review cases,in particular those with potentially negative human rights impacts.The Sales Compli-ance Board may approve with conditions or rej

160、ect cases,or in specific cases,recom-mend that human rights impacts assess-ments for specific countries be conducted.Gathering broad inputThe Sales Compliance Core Team meets bi-weekly to review cases,using expertise from several functions and departments to dis-cuss potential impacts and review pol

161、icies.The team looks at sales requests,and when necessary,determines what mitiga-tion actions should be undertaken,for example,that implementing staff at the operator must have the right product or ser-vice training before a contract is concluded.Involving different departments helps ensure that any

162、 decision considers multi-ple angles,in order to reduce the risk that Ericssons technology directly or indirectly impacts negatively on human rights.Criteria for evaluationSales that trigger one or more of the fol-lowing criteria are evaluated in the sales compliance process for human rights risks:P

163、ortfolio:This concerns products and services that Ericsson provides that could potentially be used for unin-tended purposes.Purpose:This concerns understanding the purpose and context in which the product,service or know-how will likely be used.Customer:This focuses on enhancing our understanding ab

164、out to whom we sell/deliver.Country:This provides insight about the country to which we deliver,based on the risk indices of a global risk analytics firm in areas such as human rights risks;corruption;democratic governance;freedom of opinion and expression.Countries requiring extra attention are tho

165、se under sanctions as well as other countries ranked as a high risk based on a external risk indices.We recognize this is an ongoing process and continuously monitor international developments.ResultsIn 2014,more than 300 cases were reviewed(see graph).The review and approval process was enhanced,so

166、 that while the total number of cases increased in 2014,more cases were approved with conditions.We have procedures for follow-ing up on mitigation measures and the decisions that are taken within the sales compliance process.Sales Compliance Board Review of Cases 20132014 183Cases approved 214 24Ca

167、ses approved with conditions 85 12Cases rejected 20 Source:Ericsson219319SALES COMPLIANCE risk methodology PurposePortfolio CountryCustomerTotal risk evaluation15Ericsson|Sustainability and Corporate Responsibility Report 2014Anti-corruption a top priorityAccording to the World Economic Forum,the co

168、st of corruption equals more than 5%of global GDP(USD 2.6 trillion).With over USD 1 trillion being paid in bribes each year(World Bank),transnational corruption is a major barrier to conducting business.Ericsson takes a zero tolerance approach to bribery and corruption.Corruption hampers investment,

169、under-mines legal and democratic systems and increases the costs of doing business.In response,around the world anti-corruption legislation is becoming stricter,enforcement is increasing,and stake-holder expectations for high standards of business integrity are growing.Fair competition and a level p

170、laying field are essential to free markets and business must play its part to actively reinforce this throughout the value chain.With our global operations spanning 180 countries many with a high risk of corruption according to Transparency Internationals anti-corruption index stay-ing focused on an

171、ti-corruption is important to Ericsson.This is achieved through a combination of risk assessment,a strong anti-corruption program,internal audits and through regularly updated employee and supplier training.Prevention and accountabilityEricsson continuously assesses corruption risks as part of Group

172、 Risk Assessment,in line with strategy and target-setting pro-cesses.Headed by the Groups Chief Compliance Officer,the anti-corruption compliance program targets both preven-tion and accountability.The effectiveness and appropriateness of the program is also reviewed and evaluated annually by the Au

173、dit Committee of the Board of Directors.Ericsson has an established process for the selection of suppliers and in general does not use agents,unless required by law or in very restricted circumstances.Reporting violationsBoth employees and third parties may report suspected violations of law or the

174、Groups Code of Business Ethics,which is available publicly on the Ericsson website.Reported violations of law or the Code of Business Ethics are handled centrally by a Group Compliance Forum,supported by a Regional Compliance Forum in each region.We also initiated the transition to a third party-man

175、aged whistleblower pro-cess,i.e.Ericsson will appoint a third party to whom employees and third parties can report violations.The process is planned to be implemented in 2015.Towards a culture of integrityTo foster individual accountability,Ericsson employees periodically acknowledge the Code of Bus

176、iness Ethics and undergo an anti-corruption e-learning course to raise awareness of risks,dilemmas and appro-priate courses of action.By year-end 2014,more than 90,000 of current employees had completed the training.Additional specialized training is pro-vided to key personnel in Sourcing,Sales and

177、other relevant functions,such as regional leadership teams.With regard to suppliers,focus on anti-corruption in self-assessment questionnaires was tight-ened and a new anti-corruption e-learning for suppliers was launched.At year-end,more than 1,100 employees of suppliers had concluded the training.

178、Industry commitmentSince 2012,Ericsson has been a member of the World Economic Forum Partnership against Corruption Initiative(PACI),aimed at raising business standards and contrib-uting to greater transparency and accountability.Members commit to a set of principles,which includes zero tolerance to

179、wards bribery and corruption,the corner-stone of Ericssons anti-corruption program.16Ericsson|Sustainability and Corporate Responsibility Report 2014Responsible sourcing is a top prior-ity for Ericsson.We work towards continuous improvement to ensure our suppliers meet high social,ethi-cal,human rig

180、hts and environmental standards.Through transparency and engagement,we work to build trust across the value chain from suppliers to customers.Our“beyond monitoring”approach develops our relation-ship with suppliers across three phases:“require,”“assess”and“improve.”First,we provide suppliers clarity

181、 around our sustainability and CR requirements.Second,we evaluate suppliers sustain-ability performance through monitoring and audits.This includes identifying and auditing high-risk suppliers.Third,to ensure continuous improve-ment,we engage with suppliers through audit follow-up,Code of Con-duct s

182、eminars and training sessions,and web-based learning.Setting expectationsSuppliers must comply with the require-ments of the Ericsson Code of Conduct which are included in supplier contracts.The Code of Conduct was updated in 2014 to include stronger human rights lan-guage in accordance with the UN

183、Guiding Principles on Business and Human Rights as well as international labor standards.Specifically,maximum working hours are more clearly set out.Another new pro-vision prohibits deduction from wages as a disciplinary measure.In 2014 we carried out over 30 supplier seminars to raise awareness on

184、our Code of Conduct,Occupational Health and Safety and environmental requirements,and to emphasize the importance of compliance.Assessing riskEricsson uses a risk-based approach to identify relevant suppliers for Code of Conduct audits.Prioritized risk areas include working at heights,road and vehi-

185、cle safety,anti-corruption,working hours,labor rights,environmental management,and communication of requirements further down the supply chain.Monitoring performanceIn 2014,595 supplier Code of Conduct audits and on-site assessments were performed by Ericssons 197 Supplier Code of Conduct auditors.W

186、e view each of our audits as an improvement activity and expect suppliers to address identified findings.Auditors follow up the actions to ensure there is continual improvement in the supply chain.Year on year,analyses of our audit results demonstrate significant improve-ments in areas such as bette

187、r working conditions,fire prevention,training and environmental management.Critical find-ings among 32 selected high-risk suppli-ers audited in both 20132014 declined 60%(from 18%to 7%).(See graph p.18).We prefer to use leadership and trans-parency with suppliers to encourage continuous improvements

188、 over time.However,suppliers who repeatedly fail to comply with our Code of Conduct risk being disqualified for further business.Proactive engagement on responsible sourcing17Ericsson|Sustainability and Corporate Responsibility Report 2014 Critical WarningCapacity buildingAs an important element of

189、our approach,we provide free,online Code of Conduct training to suppliers,offered in 13 lan-guages.In 2014,Ericsson also launched a web-based anti-corruption training for suppliers to reinforce our zero tolerance view on corruption and bribery.Meeting customer expectationsOur own performance as a su

190、pplier is a critical part of our proactive engagement in responsible sourcing.We participate in the yearly Joint Audit Cooperation(JAC)Forum made up of ten of our largest cus-tomers,telecom operators.JAC members conduct Corporate Responsibility audits of their suppliers,including Ericsson factories

191、and suppliers,and share results.Several Ericsson and supplier sites have been audited by JAC auditors during the past few years with satisfactory results.Performance of selected suppliers globallyType and number of critical and warning findings of selected suppliers globally17.9%Critical7.1%28.1%War

192、ning27.6%54.0%Conformity65.3%Source:Ericsson201320140510152025Employee contractLocal legislationBenefit and compensationForced and bonded laborOccupational Health and SafetyPhysical working environmentHandling of chemicalsPersonal Protective EquipmentRecords on incidentsSupply chainEnvironmental Man

193、agement Systemcollaborating with supplier a win-winWhen a supplier is closely aligned with our strong commitment to find sustainable solutions,collaboration can lead to significant improve-ments.That is the case with global logistics provider DB Schenker,which worked jointly with local Ericsson team

194、s to address the chal-lenge of transporting products from Ericsson in China to our facilities in Brazil all while reducing lead time,costs and carbon impact.By jointly tackling the problem,Ericsson and DB Schenker arrived at a sustainable multi-modal solution combining rail with air freight which re

195、duced CO2 emissions by 47%per 45ft container and cut lead time from 4550 days by sea freight to 2325 days with the rail-air combi nation.In addition,intermodal air-rail transports developed by DB Schenker together with Ericsson for our inbound flows to and from Europe and China has led to a 56%reduc

196、tion in CO2 per 45 ft container.Close and ongoing dialogue with the supplier central to our Responsible Sourcing approach was key to ensuring they under-stood our requirements and could develop the right solution.In 2014,Ericsson presented an award to DB Schenker for sustainability excel-lence,an ex

197、ample of how working together with a supplier can achieve positive outcomes with long-term benefits for Ericsson.Photo:DB SchenkerSource:Ericsson18Ericsson|Sustainability and Corporate Responsibility Report 2014During 2014 we have taken further steps together with our suppliers to increase transpare

198、ncy regarding con-flict minerals in our supply chain,working with our sup-pliers towards the aim of conflict-free sourcing.Some of the mineral mines in the eastern part of the Democratic Republic of the Congo(DRC)have been exploited for many years by warlords using illegal trade to finance their act

199、ivities.The miner-als are exported to smelters around the world and after refinement they end up in products in different parts of the world.Electronic products contain various metals,including tantalum,tin,tungsten and gold(“conflict minerals”),which can be found in the eastern part of the DRC.Ther

200、e are several tiers of suppliers between Ericsson and the actual mines which is why collaboration with our suppliers is necessary to achieve our aim to increase transparency in our supply chain.Industry cooperationBroad industry cooperation is needed to improve the situation and to achieve the objec

201、tive of increased supply chain transparency enabling legitimate trade of raw materials that can create a posi-tive impact on the local community.We work actively with our suppliers and through industry initiatives such as the Conflict-Free Sourcing Initiative(CFSI),driven by the Global e-Sustainabil

202、ity Initiative(GeSI),and the Electronic Industry Citizenship Coalition(EICC).We are also active in the dialogue with policymakers in the EU and other industry sectors aiming to increase awareness and understanding of conflict minerals.Our approachOur approach to conflict minerals is based on four pr

203、inciples.We have made an active choice not to ban minerals from the DRC.The reason is negative consequences that could result from an embargo of the region.We have worked to incorporate the“OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Are

204、as”in our existing sourcing practices.Some examples are our public Statement on Conflict Minerals,contractual clauses in supplier agreements,and the annual conflict minerals reporting.We filed our first Conflict Minerals Report with the US Securities and Exchange Com-mission in 2014.We have a goal t

205、o trace metals back to the smelters.This is done using the joint industry tool,the Conflict Minerals Report-ing Template.The collected information is used as an input to supplier assessments.We are members of the Conflict Free Smelter Initiative which includes the Conflict-Free Smelter Program.This

206、program makes it possible for smelters to become certified by an inde-pendent third party audit if the smelter does not source raw materials that contribute to conflict in the DRC.The certification also enables their customers to source metals from smelters and refiners that are certified as conflic

207、t free.Continuous improvementsDuring 2014,we have taken further steps to increase the trans-parency regarding conflict minerals in our supply chain.Our focus has been to improve the quality of supplier data.An on-going challenge is to obtain sufficiently high-quality supplier data to enable us to ga

208、in reasonable knowledge of the origin of the used minerals,given an extremely complex supply chain.raising transparency on conflict minerals During 2014 we have taken further steps to increase the transparency regarding conflict minerals in our supply chain.19Ericsson|Sustainability and Corporate Re

209、sponsibility Report 2014A strengthened approach to health and safetyProviding a safe and healthy workplace is of fundamental impor-tance to Ericsson.Our ambition is zero inci-dents and we focus on con tinuous improve-ments to reduce the number and severity of Occupational Health and Safety(OHS)incid

210、ents.The OHS system helps to protect our employees and others engaged in company business.The Ericsson Group Management System is certified to the OHSAS 18001 standard.Ericssons operations undergo internal audits as well as regular third-party assurance audits.A comprehensive approachWe provide requ

211、irements and controls,guidance and training in a comprehensive approach to strengthen OHS performance.Competence and awareness is key to reducing major incidents and must be based on trust and transparency,to encourage reporting of incidents.Unlike many companies,our approach extends beyond our own

212、operations and includes our supply chain,where we see the greatest risks occurring.We also significantly strengthened and prioritized the OHS area by integrating it into the Sustainability&CR organization,with higher management visibility,and appointed a new Head of Environment,Health and Safety.In

213、2014,22 workplace fatalities were reported.Of these,one was an Ericsson employee,one was a member of the public(an accident involving a caretaker in a work zone),and 20 were supply-chain related.These fatalities were reported in three categories:12 driving and vehicle safety;9 involved climbing and

214、working at heights;and one related to manual handling.As a leader in our industry,we support full transparency and accountability in the area of health and safety,and report on and investigate all incidents that we are made aware of,including those relating to supplier operations.Towards zero incide

215、ntsAny workplace fatality is unacceptable and we are taking concrete steps to address this.A program“Zero Incidents in High-Risk Environments”was established in early 2014 to reduce severe incidents in high-risk operations in both Ericssons own activities and in the supply chain.The Zero Incidents p

216、rogram will increase OHS training and awareness of project managers,field service personnel and sub-contractors.It will reinforce governance and global tools,including instructions,check lists,training materials and escala-tion procedures.If persistent violations occur,the supplier con-tract may be

217、ended.The Zero Incident program pilot was launched in early 2015 in the Netherlands,India and Egypt,and global rollout will follow later in 2015 and the first half of 2016.Radio waves and healthEricsson employs rigid product testing and installation procedures with the goal of ensuring that radio wa

218、ve exposure levels from products and network solutions are below established safety limits.The Company also provides public information on radio waves and health,and supports independent research to further increase knowledge in this area.Since 1996,Ericsson has co-sponsored over 100 studies related

219、 to electromagnetic fields and health,primarily through the Mobile Manu-facturers Forum.To ensure scientific independence,firewalls were in place between the industrial sponsors and the research-ers conducting these studies.Independent expert groups and public health authorities,including the World

220、Health Organization,have reviewed the total amount of research and have consistently concluded that the balance of evidence does not demonstrate any health effects associated with radio wave exposure from either mobile phones or radio base stations.In 2014,a new web-based general course on radio wav

221、es and health was launched and is available to all Ericsson employees.A second part of the course,with specific information for employees working in environ-ments where general public limits on electromagnetic exposure may be exceeded,will be launched in the first half of 2015.Fatalities Year to yea

222、r reporting0510152025201420132012201111116015121 Ericsson employees Suppliers,employees,public Source:EricssonA challenge for the industry is a lack of common definition and varying legisla-tion globally on how to classify and report fatalities in different areas,such as driving vehicles.Ericsson in

223、tends to work towards a more standardized framework for reporting but currently takes a more comprehensive approach.This means that in the future we may exclude some incidents from numbers currently reported as workplace related.20Ericsson|Sustainability and Corporate Responsibility Report 2014The c

224、ommitment of our people is essential to conducting business responsibly and meeting our sus-tainability and corporate responsi-bility goals.Our People Strategy starts with the busi-ness direction:to attract and retain the best talent needed to maintain and develop our business.With an engaged,high-p

225、erforming,and diverse workforce,we are better positioned to meet future challenges.Building on our strengthsOur core values underline who we are,how we do business,and how we behave towards each other,within our teams and with our customers.A key competitive advantage is being able to learn faster t

226、han our competitors,which requires a high-impact learning culture.We have a collab-orative and constructive environment,where innovation is encouraged,and peo-ple have the freedom and support to turn ideas into achievement.We also believe that a diverse and inclusive workplace sparks innovation and

227、creativity,which makes our offerings to our customers more competitive.People make the differenceOur global scale,technology and services leadership and strong sustainability and corporate responsibility performance depends on our people.Employees are motivated by what Ericsson stands for and they w

228、ant to work for a company that strives to make a positive impact in the world.Employees are highly engaged in Ericssons success,demonstrated by the results of our annual employee survey with a 93%participation rate.Our engagement index is at 78%,and 89%of employees state they are“proud to work for E

229、ricsson.”In 2014,as part of the Global Employee Referral Program,we increased the number of referrals by 21%.Our people anchored by core valuesOur values are the foundation of our culture.They guide us in our daily work,in how we relate to each other and the world around us and in the way we do busi

230、ness.Ericssons core valuesPerseveranceRespectProfessionalism21Ericsson|Sustainability and Corporate Responsibility Report 2014Building skills for the Networked Society In the competitive ICT market,our skills are our major advantage and an investment in our future.As we move into the Networked Socie

231、ty,the rules of business are changing and so are the ways we learn and develop our competencies.Ericsson aims to be a best-in-class learn-ing organization that enables employees to excel in their careers and contributes to Ericssons market leadership and financial goals.Learning in the Networked Soc

232、iety means driving a learning culture at Ericsson.This includes both formal and informal learning,collaboration and knowledge sharing.Strategic approachIn order to stay relevant and remain a pioneer and a thought leader in the Networked Society,we need to keep con-tinuous focus on competence.We have

233、 a strategic approach to learning,using a two-tier framework.Top-down,we have a process to iden-tify gaps for strategic competences in rela-tion to a specific position or geography.We close these targeted gaps through development and deployment of global learning programs.We have structured formal a

234、nd on-the-job training programs to build competence in emerging technology areas as well as focus on our sales,ser-vices and product development teams.The bottom-up approach is centered on the individual performance discussion every employee has annually.Employees discuss with their manager how to c

235、lose competence gaps,and identify learning and competence goals.Identifying competence gapsIn our 2013 report we identified a goal to increase employee technical certifications 30%over levels achieved in 2014.We sub-sequently determined that this goal is not the best measurement of our investments i

236、n building competence.Instead we decided to track key measures such as closure of critical competence gaps,identified through a rigorous annual process working with the business,including both technical and non-technical employee skill gaps.In 2014 we closed over 99%of the identified targeted employ

237、ee critical competence gaps through training.Everyday learning modelOur“Everyday Learning”model consists of on-the-job learning,collaboration forums,and formal training.This approach sup-ports various learning styles,which makes development easier for employees.As in all companies,our employees are

238、busy with day-to-day activities and setting aside time for learning is always a challenge.Hence,at Ericsson we aim to mix learning into our daily work by offering activities such as stretch assign ments,peer coach-ing,and providing several online learning and sharing tools.Taking learning virtualWe

239、take full advantage of advancements in the Networked Society to develop our employees competence.Learning is changing.People learn on the go,and want it at their fingertips.It has moved beyond the traditional classroom towards blended learning,including crowd sourc-ing,discussion forums,video sharin

240、g.We recognize the importance of collaboration and knowledge management and have focused on driving adoption across Ericsson.In 2014,Ericsson Play,a corporate video-sharing platform,was launched.Our Learn Channel has 30 dedicated channels featuring over 800 videos.Employees can access LearnEricsson

241、Play at any time on their mobile device.The newly launched Ericsson Virtual Campus also enables our business and technology experts as well as inspirational speakers to share their knowledge and insights live with a large employee base worldwide,via the web,to save time,energy and travel costs.These

242、 new delivery channels are complements to our online Learning Portal.78%26.7 HOURSShare of employees that took formal trainingAverage learning hours per active employeeA learning organization 2014 facts and figuresTotal learning hours:2.7 millionNo.of different courses:13,00022Ericsson|Sustainabilit

243、y and Corporate Responsibility Report 2014Committed to DIVERSITY AND INCLUSION A diverse and inclusive workforce is critical to Ericssons future suc-cess.Diversity not only drives a high-performing team and strong-business results,it also enhances employee motivation,and helps attract and retain top

244、 talent.In an increasingly global market,diversity helps us better respond to the needs of our customers and tap into greater innova-tion.Diversity and inclusion are also of great concern to our stakeholders and to society at large a trend we expect to con-tinue.We engage in a wide variety of initia

245、-tives related to gender diversity,both within the company,and to contribute to the global debate on these issues.The diversity of our employees is one of our major strengths as a business.It is this collective mixture of individuals,cultures and organizational experiences that drives creativity,mak

246、es us stand out from the competition and delivers great results for our customers.Diversity spurs innovationDiversity has been high on Ericssons agenda for many years and we believe diverse teams are the best teams.They are high-performing and innovative,with a variety of perspectives,experiences an

247、d references,which spurs creativity.We believe that achieving success in an increasingly multi-faceted,global and competitive market requires tapping into a broad talent pool in which diversity is a central component.Our definition of diver-sity extends beyond gender,race,religion,ethnicity,age and

248、other established parameters to focus on diversity of thought which is a driver of innovation.We are committed to increasing diversity and inclusion at Ericsson,and have made progress,but when it comes to gender diversity,we are not where we want to be.Gender diversity in focusGender diversity is a

249、key focus of our approach.In order to accelerate progress towards better gender balance,we have set a goal that by 2020 women will make up 30 percent of our employee population.In 2014,22%of Ericsson employees were female.See gender-related data,p.25.Our diversity strategy and supportive framework a

250、re geared at putting the right processes in place,raising awareness and encouraging open dialogue among employees.We measure progress through a diversity dashboard,in which a wide range of diversity statistics are gathered.Key figures are shared externally on the Diversity and Inclusion web page.Pro

251、gress in embedding diversityA Global Diversity and Inclusion Council made up of senior business leaders drives the strategy.In addition,we are working hard to embed diversity into human resource processes such as talent acqui-sition and talent management.Mentoring is used to promote gender diversity

252、:all members of the Executive Leadership Team mentor a high-potential female in the organization.We have also created mentoring circles in some of our regional operations.Women in Leadership is an Ericsson employee network spanning Ericsson operations in several countries and regions worldwide.It he

253、lps participants achieve their career goals with the help of mentor-ing,networking and engagement.Mem-bers drive internal events,collaborate with local organizations and universities and promote relevant external events.signing the UN pledgeAs part of our commitment to diversity and inclusion,includ

254、ing gender equality,male employees are being encouraged to sign the United Nations HeForShe pledge.The HeForShe campaign,organized by UN Women the UN organization dedicated to gender equality and the empowerment of women focuses on what men can do to address the inequalities and discrimination faced

255、 by women.Since its launch in September 2014,thousands of men around the world have supported the campaign including US President Barack Obama and UN Secretary-General Ban Ki-moon.At Ericsson,male employees are asked to sign a simple pledge that they are committed to gender equality.Ericsson Preside

256、nt and CEO Hans Vestberg has signed the pledge,and all of Ericssons male staff members are urged to do the same.The campaign states:“When women are empowered,the whole of humanity benefits.Gender equality liberates not only women but also men,from prescribed social roles and gender stereotypes.”Righ

257、t:Valter DAvino,Head of Ericsson Region Western and Central Europe,and Head of Ericssons Diversity and Inclusion Council,supports the HeforShe campaign.23Ericsson|Sustainability and Corporate Responsibility Report 2014Celebrating differences In 2014,we celebrated our first Diversity Awareness Month,

258、addressing issues from sexual orientation to physical ability,cul-tural issues and gender.Ericsson cele-brated International Womens Day at the global level for the first time in 2014.We held over 25 activities across the world and we produced more than 30 video por-traits highlighting“Ericssons outs

259、tanding women.”We also hosted our first Global Gender Conference,attended by men and women.Attendees were empowered to bring the gender discussion to their own locations to raise awareness and they created activities at the local level.Recognizing unconscious biasesResearch confirms that we all harb

260、or unconscious biases that are a result of life experiences,culture,background,and exposure.Biases influence decision making and can affect perceptions and behavior towards others.One of the ways in which we are furthering a constructive dialogue on inclusion is by raising aware-ness of unconscious

261、bias.Our aim is to reach the entire employee population in the next three years.Face-to-face training is slated for business leaders and e-learning for the workforce,with a target to reach 30%of each group during 2015.The objective of the course for leaders:Raise awareness about diversity and inclus

262、ion Initiate a culture of constructive dialogue around diversity and inclusion Learn about unconscious bias and impact on decision making Increase awareness of techniques which can help overcome unconscious bias Identify one opportunity for driving change Supporting women in technologyEricsson parti

263、cipates in various external diversity initiatives.A central focus is encouraging more women to join the male-dominated technology industry.We support TechWomen,which empowers and connects next-generation women leaders from Africa and the Middle East in science,technology,engineering,and mathematics(

264、STEM)by providing access and opportunities for career advancement.We are a founding partner of WomenUp,a leadership development program for high-potential women under the umbrella of Hillary Clintons International Council on Womens Business Leadership.We also participate in Introduce a Girl to Engin

265、eering.The fifth annual“Girls in ICT Day”at Ericsson in 2014 included semi-nars,workshops,campus visits and a speech by former US First Lady Laura Bush.The aim is to encourage girls and young women to consider careers in ICT.Global outreachEricsson collaborates with the Broadband Commission for Digi

266、tal Development Working Group on Gender and Broadband in a mission to promote women in ICT.The Ericsson global education initiative Connect To Learn(p.44)promotes access to secondary school education for girls around the world.Female representation,%Employees by age and gender 2014051015202530201420

267、132012201120102920192205,00010,00015,00020,00025,00030,00035,00040,000Over 55465536452635Under 25 Overall workforce Line managers Executive(Top 250 positions)Executive Leadership Team Male Female Source:EricssonSource:Ericsson 168 nationalities are represented in Ericssons workforce.24Ericsson|Susta

268、inability and Corporate Responsibility Report 2014facts and figuresEmployeesNo.20142013201220112010Year end 118,055114,340110,255104,52590,261Average 117,156116,630112,758103,13091,825Temporary employees776493766901978Employees who have left Ericsson15,53613,02512,28010,57110,066Employees who have j

269、oined Ericsson19,25117,11018,01024,83517,834Satisfaction%20142013201220112010Engagement index78777777Proud to say that I work for Ericsson89898889Extremely satisfied with Ericsson as a place to work81808080Recommend Ericsson as a great place to work78777778Response rate93939490Diversity Background%2

270、0142013201220112010Executives with a back-ground other than Swedish(Top 250 positions)5448555050Executives with a back-ground other than Swedish(Executive Leadership Team)2929292936Diversity Female representation%20142013201220112010Overall workforce2221222222Line manager1918181818Executive (Top 250

271、 positions)2019181514Executive Leadership Team2929292914Diversity Age and gender 2014No.Under 25253536454655Over 55Female2,6809,5577,7774,4101,399Male2,68336,31630,06218,0725,099Responsible sourcingAudits and assessments20142013201220112010Auditors197195179170150Audits444479494392550Assessments15114

272、4152270218Occupational health and safetyFatalities(Ericsson employees)2014201320122011Total1011North America0000Latin America0001Northern Europe&Central Asia0000Western&Central Europe0000Mediterranean0000Middle East0000Sub-Saharan Africa0000India1010China&North East Asia0000South East Asia&Oceania00

273、00Major incidents(Ericsson employees)2014201320122011Total25292020a)North America0000Latin America12161919a)Northern Europe&Central Asia2400Western&Central Europe8200Mediterranean0000Middle East2000Sub-Saharan Africa1000India0510China&North East Asia0001a)South East Asia&Oceania0200Fatalities(Supply

274、 chain and others)2014201320122011Total2115b)611a)North America2200Latin America5018a)Northern Europe&Central Asia0100Western&Central Europe0210Mediterranean1110Middle East5 7b)22Sub-Saharan Africa1010India6001China&North East Asia0100South East Asia&Oceania1100a)Data revised in 2014.b)Fatalities re

275、ported in 2014.Major incidents(Supply chain and others)2014201320122011Total44357811North America4210Latin America1311407Northern Europe&Central Asia12101Western&Central Europe0251Mediterranean1120Middle East7951Sub-Saharan Africa1170India16220China&North East Asia0441South East Asia&Oceania1120a)Da

276、ta revised in 2014.25Ericsson|Sustainability and Corporate Responsibility Report 2014Energy,environment and climate CHange26Ericsson|Sustainability and Corporate Responsibility Report 2014Ericsson|Sustainability and Corporate Responsibility Report 201426ON ENERGY AND CLIMATE,ICT ENABLES TRANSFORMATI

277、ON Our strategy is to maximize the energy performance of our products and solutions,reduce the carbon footprint of our own activities,and drive the transformation that enables a low-carbon economy.Ericsson takes a life-cycle approach to environmental management that includes raw material extraction,

278、manufacturing,transport,use,disassembly and end-of-life management.We focus on the follow-ing three areas:Reducing our own environmental impacts,Reducing environmental impacts from our products and solutions in operation,Advocating and enabling ICT solutions for a low-carbon economy.Our life-cycle a

279、ssessments consistently confirm that Ericssons most significant environmental impact is the energy used by our products in operation.O ur main aim is to maximize the energy perfor-mance of our products,services and solu-tions to help customers optimize their net-works (p.30).We also seek to reduce t

280、he carbon footprint of our own activities(p.34).The ICT sector footprintThe ICT sector is responsible for about 1.3%of total global greenhouse gas(GHG)emissions,according to the Ericsson Energy and Carbon Report(2014),which looks at the ICT sectors own environmen-tal impact in terms of electricity u

281、se and GHG emissions.It also includes an update of our 2020 forecast for the sectors GHG emissions.Even with the expected dramatic growth in mobile subscriptions,the total ICT impact is expected to account for no more than 2%of the total GHG emissions in 2020.This is largely due to advances in techn

282、ology,and industry-wide efforts to reduce energy consumption.However,in absolute terms the emis-sion levels from ICT are still considerable and must be addressed.We prioritize energy performance throughout the net-work to identify opportunities to reduce energy consumption and GHG emissions of mobil

283、e networks.The ICT enablement effectWhile the continued growth of the ICT sec-tor brings with it a range of environmental challenges,we see huge potential for the ICT sector to provide solutions that reduce global GHG emissions in other sectors.In fact,our research shows that the use of ICT has the

284、potential to reduce global GHG emissions by approximately one sixth.ICT solutions help other sectors of soci-ety to reduce GHG through dematerializa-tion of physical products and systems,for example,substituting travel with collabora-tive tools or substituting the need to pro-duce physical products

285、by delivering e-products and services.Energy can be generated,distributed and consumed more efficiently through smart grids and smart meters.ICT can also unlock effi-ciency gains in buildings,transportation,and logistics.Measuring the impactIn 2014,we strengthened our focus on providing solutions to

286、 help other sectors of the economy,primarily utilities and trans-port,to offset carbon emissions.In line with this focus area,we set a target for 2015:to reduce societal carbon emissions by a factor of 2 in relation to carbon emis-sions from Ericssons own activities in 2014,by implementing ICT-enabl

287、ed solu-tions,such as smart meters and smart transport solutions.Ericsson carbon footprint 2014Mtonnes CO2eFuture(lifetime)operation of products delivered in 2014 Operator activities Products in operation End-of-life treatment ApproximatelySource:Ericsson5051015202530350.3530.835Activities in 2014 S

288、upply chain Own activitiesEnergy and Carbon ReportThe Ericsson Energy and Carbon Report 2014 focuses on the ICT sectors own environmental impact in terms of electricity use and GHG emissions.It also includes an update of our 2020 forecast for GHG emissions of ICT;the first-ever national assess-ment

289、of the total GHG emissions attributable to the ICT sector,and a detailed study of the life-cycle impact of a smartphone.The research is a collabora-tion between Ericsson,telecom operator TeliaSonera,the KTH Royal Institute of Technology in Stockholm and Sony.ERICSSON ENERGY AND CARBON REPORTINCLUDIN

290、G RESULTS FROM THE FIRST-EVER NATIONAL ASSESSMENT OF THE ENVIRONMENTAL IMPACT OF ICT November 201427Ericsson|Sustainability and Corporate Responsibility Report 2014Smart street lighting Ericsson Zero Site portfolio are smart encapsulated street furniture solutions.The lamp post solution is developed

291、 in co-operation with Philips to offer city officials an innovative way to support energy efficient LED lighting to meet sustainability goals,and enables network operators to offer improved city-wide mobile broadband and app coverage.This street site solution is designed to be deployed in just a few

292、 hours in a city environment.28Ericsson|Sustainability and Corporate Responsibility Report 2014Assessing ICT sector carbon footprintAccommodating growth in the ICT sector while enabling a low-carbon economy was the focus of new research by Ericsson in 2014,including the first-ever national assessmen

293、t of the life-cycle environmental impact of ICT.By 2020,global mobile subscriptions will reach 9.5 billion,according to the Novem-ber 2014 Ericsson Mobility Report.Mobile data traffic is expected to increase annu-ally about 40%and will grow eight-fold by 2020,driven by mobile broadband,cloud service

294、s and new devices.This places huge capacity demands on tomorrows networks.Data growth marginal impactOn a global basis the global GHG per sub-scriber for ICT are estimated to decrease from 110 in 2007 to 72 in 2020,as shown in the graph.It is also expected that individual users will have more subscr

295、ip-tions and devices in the future.Interestingly,the rapid increase in data capacity is not having a significant impact on the overall carbon footprint of the ICT sector.Estimates indicate GHG emissions per amount of fixed data transmitted will decrease from nearly 6 kg CO2e/GB in 2007 to about 0.25

296、 kg CO2e/GB in 2020.For mobile data,the estimated decrease is even greater,from about 100 kg CO2e/GB to about 0.5 kg CO2e/GB during the same period.In mobile net-works,there was roughly 8 times more data than voice traffic during 2014,and by 2020 there will be in the magnitude of 30 times more data

297、than voice traffic.First-ever national assessment of ICT footprintIn 2014,the first-ever national-level study of the life-cycle environmental impact of ICT was published together with TeliaSonera and KTH Royal Institute of Technology in Stockholm.This unique study for Sweden is based on available st

298、atistical data from 2010.The total GHG emissions due to the ICT sector in Sweden amounted to approximately 1.5 Mtonnes CO2e in 2010.This corresponds to 1.2%of total Swedish GHG emissions.The main electricity-consuming catego-ries were user PCs,data centers(servers)and other user equipment.These area

299、s also offer the larg est potential for reducing electricity consumption.When applying a global average elec-tricity mix to the ICT model for Sweden,the relationship between the manufacturing and use stage changes considerably for all parts,(see graph).The electricity mix is used for calculating CO2

300、 impact based on distribution of energy sources used to produce the electricity in an area.In our study,annual GHG emissions for an average Swedish subscription,recalcu-lated with global electricity mix,ranges from 34 kg CO2e for 2G mobile communi-cations up to about 560 kg CO2e for a fixed(xDSL)bro

301、adband subscription or a workplace(LAN)PC.The relatively large impact for fixed subscription is linked to the average subscriber having a greater number of user equipment connected to the fixed network.These devices are on average physically larger compared to mobile user equipment.Fixed ICT network

302、s carry the majority of the transmitted data,with a larger share of GHG emissions being allocated from data centers.Use(electricity consumption)Use(other energy)Manufacturing(embodied)Fixed ICT sub Average ICT sub Mobile ICT subGraph 2:Annual GHG emissions for different average ICT subscriptions in

303、Sweden 2010 global electricity mix in the use stagekg CO2eGraph 1:GHG emissions per subscribers outlookkg CO2e/subscriber01002003004005006002G mobile communicationsBroadband telephony3G mobile broadbandClassic telephonyIPTV(high scenario)Fixed DSL broadbandOffice LAN050100150200250050100150200250202

304、02019201820172016201520142013201220112010200920082007Source:EricssonSource:Ericsson29Ericsson|Sustainability and Corporate Responsibility Report 2014RETHINKINGenergy performance With our strategy to lead our sector in network energy performance,Ericsson has taken a systematic approach for energy per

305、formance that will reduce energy consump-tion while increasing app coverage.Energy efficiency has become a key priority for the telecom industry as mobile network operators are increasingly challenged by the need to build energy-efficient networks as well as deliver high performance.Reducing energy

306、consump-tion makes good business sense,satisfies regulatory needs and contributes to reduc-ing environmental impact.Generation shift brings efficiency The new Ericsson Radio System is a mod-ular approach to build and expand mobile networks.It represents a generational shift.The energy-efficient Eric

307、sson Radio System is designed to handle the mobile data traffic increases expected by 2020.The system is half the size and weight and delivers twice the capacity.It enables operators to capitalize on growing mobile broadband demand from consumers,businesses and the Internet of Things to build their

308、business as they evolve to 5th generation mobile systems.A holistic approachIn a mobile network,the radio access network(RAN)is the largest consumer of energy,and is therefore where most energy-efficiency improvements are focused.However,addressing the total cost of energy of a network covers more t

309、han reducing energy consumption of radio base stations.It requires a holistic approach to address all aspects,from nodes to sites to network.Address the installed baseImproving radio network energy perfor-mance involves more than replacing old equipment with new,more energy-efficient hardware.Much c

310、an be gained,for exam-ple,by deploying energy-saving software features to the installed base.Whenever new radio technology is added,existing generations remain.Solutions must there-fore address all generations of technology;From always on to always available,there are many RAN-specific energy-saving

311、 features for 2G,3G,4G,giving operator the potential to reduce energy consumption in existing radio equip-ment up to 25%.For example BCCH Power Saving(GSM),see Turkcell case;Traffic Aware Power Saving(WCDMA)and Micro Sleep Tx(LTE).Prolong capacity life-cycle.An energy-efficient network can deliver n

312、eeded capacity for a long time based on flexi-ble capacity growth rather than hard-ware upgrades.Network capacity can be increased by staying current with the latest software release,without adding new hardware.New hardware platforms that support multi-standard,multi-band are more energy efficient a

313、nd future proof.The radio unit from Ericsson Radio System provides a 50%improvement in energy efficiency.Ericsson Radio System was launched during 2015.Build with precisionFrom our global installed base Ericsson offers insights into traffic and network real-ity,enabling operators to understand how t

314、raffic is distributed.Over-dimensioning does not always result in performance gains.Instead,it more often leads to increased OPEX,higher energy consump-tion,and inflated capital expenditures all of which impact the total cost of owner-ship.In one trial,energy consumption of a deployment with traditi

315、onal,large-capacity radio base stations was compared with that of a more precisely matched mix of solutions.Results showed that with this approach,it is possible to reduce energy consumption by 40%.The different site capacity demands need to be matched with different variants of baseband and radio p

316、roducts,optimized for each of the desired traffic segments.Ericssons unique Psi Coverage is one solution that has enabled accelerated efficiency gain for Turkcell Turkcell,the leading mobile operator in Turkey,required a more efficient way to operate its network and to build in more capacity for inc

317、reased mobile traffic while keeping energy costs under control.By deploying Ericssons energy-efficiency software feature BCCH(Broadcast Control Channel)Power Saving,Turkcell managed to reduce energy consump-tion in GSM networks and improve network performance.The solution,designed to save power in G

318、SM networks,regulates the power level of time slots in the BCCH carrier while maintaining network quality.The feature aims to save energy by down-regulating the time slots(except for TS0)at BCCH TRX(transceiver).Turkcell has deployed this feature for the entire network.It has not only reduced power

319、consumption but improved network perfor-mance.The monthly average energy consumption per site decreased by 86.8 kWh,which resulted in a 6%reduction of total energy consumption yearly for Turkcell.30Ericsson|Sustainability and Corporate Responsibility Report 2014deployment of 3G coverage and improved

320、 user experience,while providing signifi-cant energy and cost savings compared to traditional solutions.Successfully deployed in supporting 3G coverage globally,the Psi Coverage solution will during 2015 also be launched for 4G networks.(See Croatia case below.)Optimize on site One way in which we h

321、elp operators solve challenges on-site is through Remote Site Management.This assists operators to control site expansion by adding intelli-gence that manages energy consumption within limits.It provides continuous infor-mation of energy source which helps con-trol and compare energy consumption at

322、all sites.The remote Hybrid Control Manage-ment ensures an optimized usage of diesel generators,batteries,solar power,wind turbine,fuel cells,etc.The battery life is also prolonged through battery manage-ment which helps avoide unnecessary replacements.Reduced energy despite demand By implementing a

323、 systematic approach to energy performance,it is possible for net-work operators to cover the forecasted eight-fold growth in mobile traffic between 2014 and 2020 with reduced energy con-sumption.Leveraging small cells deploymentIn some environments such as certain stadiums,busy streets and multi-st

324、ory office blocks,small cells provide a com-plement to macro cells in meeting user demands.Indoor environments pose spe-cial challenges for service providers.When small cells are implemented correctly,it has the potential to both improve performance and to reduce energy consumption.Small-cell design

325、s can enhance user performance while reducing total network energy consumption compared with a pure macro network.When small-cell nodes are added to a highly loaded macro network,energy consumption typically increases,as more equipment is added to the network,but capacity also increases.If placed co

326、rrectly,small nodes can provide users with better performance than the macro node.This means that higher data rates are possible with less trans mission energy.Global services reachWe work with our customers to determine the optimal approach to maximize energy performance and support future traffic

327、growth.This includes an assessment phase:to understand current energy con-sumption,set tailored KPIs,predict future for remote areas,exploring new approaches In a project funded by the European Union(EU),Ericsson and partners are explor-ing how fuel cell tech nology can power off-grid telecom statio

328、ns.With growing penetration of mobile services,the number of remotely located radio base stations(RBS)is on the rise.Unable to connect to the electricity grid,they rely instead on batteries and diesel generators that can generate substantial carbon emissions.FCpoweredRBS,led by Ericsson,is a large-s

329、cale demonstration activity in collab-oration with the EU Joint Research Centre,and includes mobile operator Telecom Italia and 3 Italia.The project looks at the viability of fuel cells and other types of alternative energy supply as an alternative to standard power sources.A fuel cell is a device t

330、hat generates electricity by a chemical reaction.Integrated solutionIn ongoing field trials,the power supply of several radio base stations is replaced with a new energy supply based on a solution that integrates different compo-nents(fuel cells,photovoltaics and batteries).The goal is increased ene

331、rgy effi-ciency and improved total cost of ownership.Results show that the amount of unattended hours can be increased,thanks to efficient use of the alternative energy sources and the storage potential of hydrogen.This means lower opera-tional costs and positive impact on the environment for the op

332、erator.Alternative energy sources are selected based on local conditions such as weather conditions,time of day,battery load,and hydrogen.Electrolyzers contri-bute to generating hydrogen locally,with the aim of making the radio site energy-independent in the longer term.Final project results are exp

333、ected during 2015.Psi coverage solution deployed on Croatias coastMobile operator Vipnet partnered with Ericsson to expand 3G coverage on Croatias coastline.Vipnet required a low-power solution for their solar-powered sites.Tested on 20 sites,it was confirmed that the Psi Coverage solution offers up to 50%lower power consumption compared to alternatives,without compro-mising network coverage and p