The Ericsson Annual Report 2025 underscores how sustainability has become a central pillar of the company’s growth strategy, combining climate action, advanced connectivity, and circular innovation to reshape the telecom industry.
Accelerating Net Zero and Climate Targets
Ericsson, as part of its sustainability strategy, is advancing toward its ambitious goal of achieving net zero greenhouse gas emissions across its value chain by 2040, covering Scope 1, 2, and 3 emissions. The company has already made notable progress, including a significant reduction in operational emissions and continued alignment with science-based climate targets. Its approach focuses on decoupling business growth from environmental impact while strengthening long-term resilience.
Scope 1 emissions
Ericsson plans to reduce Scope 1 emissions mainly by transitioning to a smaller, low emission vehicle fleet and expanding fleet management systems to optimize vehicle use. Additional reductions are expected from relocating operations to facilities with district heating, replacing gas boilers with electric systems where feasible, and by using refrigerants with lower global warming potential while minimizing their overall use. Ericsson aims to reduce annual Scope 1 GHG emissions by 37,000 metric tons, or 84 percent, by 2030.
Scope 2 indirect emissions
Ericsson will source renewable electricity for its facilities and to collaborate with facility management partners to further improve energy efficiency. Ericsson aims to reduce annual Scope 2 GHG emissions by approximately 70,000 metric tons, or 94%, by 2030.
Energy-Efficient Networks Transforming Telecom
A major highlight of Ericsson’s sustainability strategy is its leadership in energy-efficient, AI-powered mobile networks. Through its “Breaking the Energy Curve” initiative, the company has significantly reduced energy consumption at radio base station sites and is now targeting deeper efficiency gains by 2027. Innovations such as intelligent sleep modes, AI-driven optimization, and ultra-low-power hardware are helping telecom operators cut both costs and carbon emissions.
Sustainability Embedded Across the Value Chain
Ericsson’s sustainability efforts extend across its entire extended value chain, from raw material sourcing to end-user services. The company has engaged hundreds of suppliers to adopt science-based climate targets, ensuring environmental responsibility across hardware, software, and service ecosystems. Strong supply chain governance, including audits and ethical sourcing standards, reinforces this commitment.
Advancing Circular Economy and Product Lifecycle Management
Circularity is a growing priority for Ericsson. Through initiatives like its Global Product Take-Back Program, the company refurbishes or recycles decommissioned equipment, reducing e-waste and environmental impact. In 2025, Ericsson further integrated circular design principles such as modularity and recyclability into its Networks and Enterprise solutions, supporting more sustainable 5G and future 6G infrastructure.
Water Stewardship and Environmental Management
While telecom operations have relatively low water intensity, Ericsson continues to prioritize water efficiency and environmental monitoring. The company is deploying water-saving technologies in cooling systems and leveraging IoT-based solutions for smart water and air quality management, particularly in regions facing water stress.
Strong Governance, Ethics, and Safety Focus
Ericsson maintains robust sustainability governance through board-level oversight, compliance frameworks, and risk management systems. Health and safety remain key priorities, with a long-term ambition of zero workplace incidents. In 2025, the company reported measurable safety outcomes while strengthening preventive measures across operations.
People, Inclusion, and Social Impact
Social sustainability is deeply embedded in Ericsson’s culture. The company promotes diversity, equity, and inclusion, alongside merit-based hiring and equal pay initiatives. Continuous learning, especially in AI and digital skills, supports workforce transformation. Programs like “Connect to Learn” highlight Ericsson’s broader societal impact by expanding digital access and education.
Enabling a Low-Carbon Digital Future
Ericsson’s technology plays a crucial role in enabling digital transformation and decarbonization across industries. By delivering high-performance, energy-efficient connectivity, the company supports smart infrastructure, enterprise innovation, and sustainable economic growth worldwide.
Strategic Outlook
The 2025 report positions Ericsson as a leader in technology-driven sustainability, where climate action, innovation, and operational efficiency converge. By aligning its sustainability goals with business strategy, Ericsson is not only reducing its environmental footprint but also creating a competitive advantage in the rapidly evolving global telecom market.
FASNA SHABEER
