Case study: How Ericsson reduces the carbon footprint of its activities
As a global ICT (information and communications technology) leader, with customers in 180 countries around the globe, Ericsson seeks to contribute to the global transition towards a low-carbon economy by reducing the environmental impact of its activities Tweet This!, with a special focus on its carbon footprint.
This case study is based on the 2016 Sustainability and Corporate Responsibility Report by Ericsson published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
Abstract
Working continuously to track, effectively manage and reduce its environmental footprint is a top priority for Ericsson. In order to reduce the carbon footprint of its activities Ericsson took action to:
- reduce energy usage in facilities
- shift from air to surface product transport
- reduce business travel and vehicle fleet impact
Subscribe for free and read the rest of this case study
Please subscribe to the SustainCase Newsletter to keep up to date with the latest sustainability news and gain access to over 2000 case studies. These case studies demonstrate how companies are dealing responsibly with their most important impacts, building trust with their stakeholders (Identify > Measure > Manage > Change).
With this case study you will see:
- Which are the most important impacts (material issues) Ericsson has identified;
- How Ericsson proceeded with stakeholder engagement, and
- What actions were taken by Ericsson to reduce the carbon footprint of its activities
Already Subscribed? Type your email below and click submit
What are the material issues the company has identified?
In its 2016 Sustainability and Corporate Responsibility Report Ericsson identified a range of material issues, such as anti-corruption, the right to privacy, product energy performance, responsible sourcing (including materials sourcing), occupational health and safety. Among these, reducing the carbon footprint of its activities stands out as a key material issue for Ericsson.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups Ericsson engages with:
| Stakeholder Group |
| Customers |
| Shareholders |
| Employees |
| Suppliers |
| Governments |
| Civil society |
| Non-governmental organisations (NGOs) |
| Industry partners |
| Media |
| Academia |
| General public |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics, Ericsson conducted a survey among a representative sample of active employees and, also, sought feedback from customers and investors through surveys and dialogue.
What actions were taken by Ericsson to reduce the carbon footprint of its activities?
In its 2016 Sustainability and Corporate Responsibility Report Ericsson reports that it took the following actions for reducing the carbon footprint of its activities:
- Reducing energy usage in facilities
- Ericsson achieves more efficient use of its buildings through better workplace functionality (e.g. teamwork workspaces), a shift to more energy-efficient buildings and by driving building requirements. In addition, Ericsson prioritises the use of renewable energy in its facilities (offices, production sites, data centers and test labs). More than 80% of the electricity purchased in Europe comes from green sources and, at year-end 2016, the use of green certified electricity by Ericsson’s facilities increased by 2.5 per cent compared to 2015. Moreover, in 2016 Ericsson announced an agreement with a district heating company in Stockholm, to deliver recycled waste heat from its Global ICT Center in Rosersberg and one verification center in Kista. This agreement is expected to reduce Ericsson’s CO2 emissions by 7,200 tonnes per year.
- Shifting from air to surface product transport
- In 2016, Ericsson continued to shift from air to surface transport, to reduce its CO2e emissions. Although product volumes transported were comparable to 2015, Ericsson achieved a reduction of 26 ktonnes CO2e in absolute terms, and is below 1 tonne CO2e per tonne of goods transported.
- Reducing business travel and vehicle fleet impact
- In 2016, Ericsson’s business travel emissions dropped by around 4 per cent per employee compared to 2015 not least as a result of virtual meetings, which have become a standard way of how Ericsson works, as a substitute to travel. As regards fleet vehicles, Ericsson aims to reduce CO2e per kilometer in its vehicle fleet by using vehicles more efficiently, implementing telematics and trialing alternative fuels.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standards addressed in this case are:
1) Disclosure 302-1 Energy consumption within the organization
2) Disclosure 302-4 Reduction of energy consumption
3) Disclosure 305-4 GHG emissions intensity
4) Disclosure 305-5 Reduction of GHG emissions
Disclosure 302-1 Energy consumption within the organization corresponds to:
- Sustainable Development Goal (SDG) 7: Ensure access to affordable, reliable, sustainable and modern energy for all
- Business theme: Energy efficiency, Renewable energy
- Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
- Business theme: Energy efficiency
- Sustainable Development Goal (SDG) 12: Ensure sustainable consumption and production patterns
- Business theme: Energy efficiency, Transport
- Sustainable Development Goal (SDG) 13: Take urgent action to combat climate change and its impacts
- Business theme: Energy efficiency
Disclosure 302-4 Reduction of energy consumption corresponds to:
- Sustainable Development Goal (SDG) 7: Ensure access to affordable, reliable, sustainable and modern energy for all
- Business theme: Energy efficiency
- Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
- Business theme: Energy efficiency
- Sustainable Development Goal (SDG) 12: Ensure sustainable consumption and production patterns
- Business theme: Energy efficiency
- Sustainable Development Goal (SDG) 13: Take urgent action to combat climate change and its impacts
- Business theme: Energy efficiency
Disclosure 305-4 GHG emissions intensity corresponds to:
- Sustainable Development Goal (SDG) 13: Take urgent action to combat climate change and its impacts
- Business theme: GHG emissions
- Sustainable Development Goal (SDG) 14: Conserve and sustainably use the oceans, seas and marine resources for sustainable development
- Business theme: Ocean acidification
- Sustainable Development Goal (SDG) 15: Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
- Business theme: Forest degradation
Disclosure 305-5 Reduction of GHG emissions corresponds to:
- Sustainable Development Goal (SDG) 13: Take urgent action to combat climate change and its impacts
- Business theme: GHG emissions
- Sustainable Development Goal (SDG) 14: Conserve and sustainably use the oceans, seas and marine resources for sustainable development
- Business theme: Ocean acidification
- Sustainable Development Goal (SDG) 15: Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
- Business theme: Forest degradation
78% of the world’s 250 largest companies report in accordance with the GRI Standards
SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.
Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.
7 GRI sustainability disclosures get you started
Any size business can start taking sustainability action
GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom (venue: London School of Economics)
- Exclusive FBRH template to begin reporting from day one
- Identify your most important impacts on the Environment, Economy and People
- Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP.
- Benchmarking methodology to set you on a path of continuous improvement
References:
1) This case study is based on published information by Ericsson, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:
http://database.globalreporting.org/
2) http://www.fbrh.co.uk/en/global-reporting-initiative-gri-g4-guidelines-download-page
3) https://g4.globalreporting.org/Pages/default.aspx
4) https://www.globalreporting.org/standards/gri-standards-download-center/
Note to Ericsson: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.