Ericsson has a comprehensive approach to managing environmental issues based on the precautionary principle, including a Group Environment Management System that has been certified according to ISO14001 since 2001.

We measure our impacts comprehensively. In this report we focus primarily on the reduction of CO2 emissions, as our LCA consistently points to this factor as our most material impact. Data on environmental performance indicators, including water use, emissions, effluents, waste, and materials use, as well as our management approach is reported in an online extension of this report, as in accordance with the GRI G3 guideline.

In 2006, the average electricity consumed by Ericsson emitted approximately 0.26 kg CO2 / kWh when produced, while the world average of electricity production emitted 0.5 kg/kWh. In Sweden, where Ericsson has the bulk of its operations, the energy mix is predominantly non-fossil fuel. In total, Ericsson operates 18 manufacturing facilities, the largest of which are located in Sweden, India, China, Brazil and Italy.

Our operations represent 3 percent of Ericsson’s combined direct and indirect CO2-related impact. Direct impacts are estimated at 730,000 tons for 2006. The majority of these emissions are associated with transports of products - 440,000 tons. Our sites and travel represent 290,000 tons CO2, which includes approximately 24,500 tons CO2 from production at manufacturing sites. The Greenhouse Gas (GHG) Protocol was referenced in calculating CO2 emissions associated with transport.

CO2 emissions from transportation of our products to customers represent 60 percent of our total direct CO2 emissions. Given the ongoing consolidation of production facilities, products are increasingly transported over greater distances, with a significant dependence on air transport. However, more shipping by boat coupled with the ongoing trend to cut the volume and weight of our products reduced air transport in 2006. Ship transport was used 20 times more often in 2006 compared to 2003.

Air transport represented 70 percent of total product transport (measured in weight times distance) in 2005 and 63 percent in 2006. Surface transport represented 30 percent of our transportation in 2005 and 37 percent in 2006. Use of surface transport will continue to increase.

There was a slight increase in emissions from electricity use as well as air and car travel compared to 2005, due in part to the increase in employees through acquisitions.