Ericsson’s second round of climate targets toward Net Zero approved by Science Based Target initiative

Having met and surpassed its first science-based 1.5°C-aligned Paris Agreement greenhouse gas emission reduction targets, Ericsson’s (NASDAQ: ERIC) second round of climate action targets toward Net Zero have been approved by the Science Based Targets initiative (SBTi).

Ericsson has committed to reducing emissions across the company value chain by 90 percent by the end of 2040 – from 2020 levels. The company is also committed to neutralizing the remaining 10 percent with approved carbon removals.

SBTi, a UN-backed global body that independently assesses companies’ emission reduction commitments and targets in line with the latest climate science, conducted a rigorous assessment of Ericsson’s targets against company initiatives, actions and emission data.

Ericsson was among the first large companies in the world to embrace and set climate action targets in line with stringent criteria set by organizations such as the SBTi.

Ericsson’s second round targets have now been approved by the SBTi, including the company’s 2040 Net Zero target announced in 2021.

Heather Johnson, Head of Sustainability and Corporate Responsibility, Ericsson, says: “As a technology leader with a strong foundation in research and development, we understand our climate impacts and the importance of limiting global warming to 1.5°C. The SBTi approvals are a testament to Ericsson’s science-based approach to climate action that will ultimately benefit the company, our stakeholders and society.”

Treating climate action as an urgent strategic issue, Ericsson has prioritized achieving related targets through actions within the company, the product portfolio and across the wider business value chain.

Terminology

These strategic priorities are also 1.5°C-aligned – the ambition that average global temperature increases should not exceed preindustrial averages by more than 1.5°C to limit potentially irreversible climate change consequences.

Emissions are categorized into three scopes under the Greenhouse Gas Protocol. In Ericsson terms, Scope 1 comprises direct emissions from sources owned or controlled directly by Ericsson. Scope 2 covers indirect emissions where Ericsson has bought energy, such as the emissions related to the electricity used in Ericsson premises. Scope 3 emissions are indirect emissions from sources not owned or controlled by Ericsson but within the Ericsson value chain – including customers and the supply chain.

Ericsson’s new targets follow the company’s achievements of SBTi-approved targets in a previous round covering 2016 to 2022. These targets were to reduce scope 1, 2 and scope 3 categories Business Travel and Downstream Transportation emissions by 35 percent as well as to achieve 35 percent energy savings in Ericsson Radio Systems compared to the legacy portfolio. Ericsson met and surpassed these goals within the target timeframe, reducing them by 60 percent and 39 percent respectively.

Approved in December 2023, and announced today, the Science Based Targets initiative (SBTi) worded the approval of Ericsson’s new targets as:

Overall Net-Zero Target

Ericsson commits to reach net-zero greenhouse gas emissions across the value chain by FY2040 (end of 2040).

Near-Term Targets

Ericsson commits to reduce absolute scope 1, 2 and 3 GHG (greenhouse gas) emissions 50 percent by FY2030 (end of 2030) from a FY2020 (end of 2020) base year. Within this target, Ericsson commits to reduce absolute scope 1 and 2 GHG emissions 90.0 percent and absolute scope 3 GHG emissions 50.0 percent within the same timeframe.

Long-Term Targets

Ericsson commits to reduce absolute scope 1, 2 and 3 GHG (greenhouse gas) emissions 90 percent by FY2040 (end of 2040) from a FY2020 (end of 2020) base year.

More about SBTi

The Science Based Targets initiative is a global body enabling companies and financial institutions to set ambitious emissions reduction targets in line with the latest climate science.

The SBTi’s goal is to accelerate businesses across the world to support the global economy to halve emissions before 2030 and achieve net-zero before 2050.

In addition to the United Nations Global Compact, the SBTi collaboration includes CDP, the World Resources Institute (WRI), the World Wide Fund for Nature (WWF) and one of the We Mean Business Coalition commitments.