Critical Minerals

Understanding our position in the supply chain

Ericsson does not have direct purchasing relationships with mines and smelters or refiners (SoRs) due to several tiers of suppliers between us and these entities. Thus, collaboration with our direct suppliers and industry peers is crucial to improving business practices throughout the mineral supply chain.

Transition from Conflict Minerals to Critical Minerals

Ericsson is transitioning from a "Conflict Minerals" approach to a "Critical Minerals" strategy. Conflict minerals, such as tantalum, tungsten, tin, and gold (collectively known as 3TGs), are often sourced from Conflict-Affected and High-Risk Areas (CAHRAs), like the Democratic Republic of the Congo (DRC).  For an indicative list of CAHRAs, please visit this link. These minerals have been associated with forced labor and the financing of armed groups, leading to regulations like the US Dodd-Frank Act and the EU Conflict Minerals Directive that require companies to ensure their mineral sourcing does not contribute to human rights violations.

In contrast, the "Critical Minerals" strategy encompasses a broader range of materials essential for technology and industry, such as (but not limited to) lithium, nickel, cobalt, natural graphite, or rare earth elements (REE). Most countries produce their own list of critical minerals. The EU’s critical minerals list is regularly updated and can be found here. This shift reflects a strategic focus on securing vital resources for innovation and digital transformation sustainably.

To comply with international regulations, companies are now mandated to develop due diligence systems, including chain of custody or traceability processes, to ensure the ethical sourcing and processing of these minerals. Ericsson is committed to continuously enhancing its policies and due diligence systems and requires our suppliers to do the same.

Evolving regulatory landscape

Increasingly, the responsible sourcing of raw materials is being regulated. The US, Canada, Mexico, Australia, the UK, and the EU are just a few examples of jurisdictions that have strengthen legislation on supply chain due diligence, critical minerals and forced labor. Below we list some of the more recent regulations enacted in the EU. Compliance with these regulations means that Ericsson must have fully traceable materials and a transparent supply chain. We require the help of our suppliers to achieve this. 

EU regulatory framework

The EU has enacted several regulations to ensure the responsible sourcing of critical minerals. We mention below some of the most relevant ones

• The European Union's Forced Labour Regulation prohibits the sale, import, and export of products made with forced labor within the EU market. This regulation applies universally to all products, regardless of their origin or industry, and mandates that companies ensure their entire supply chains are free from forced labor at any stage of production. For Ericsson and its suppliers, this means developing rigorous due diligence to trace the origin of all components and materials used in their products. Ericsson must ensure that its operations and those of its suppliers comply with the regulation to continue accessing the EU market. Non-compliance could result in products being banned from the market and potential legal and financial repercussions.
• EU Battery Regulation: For Ericsson and its suppliers, this regulation requires implementing supply chain due diligence to ensure responsible sourcing of materials like cobalt, lithium, graphite, nickel, etc. and adhering to new labeling standards. Compliance will require close collaboration with suppliers to meet performance, durability, and recycling targets.
• Corporate Sustainability Due Diligence Directive (CSDDD): For Ericsson and its suppliers, compliance means implementing robust due diligence processes to monitor and address potential risks throughout the supply chains. This includes assessing business practices, fostering long-term partnerships, and ensuring transparency to align with the directive's requirements. Non-compliance could lead to legal liabilities and reputational damage, underscoring the importance of integrating sustainability into corporate governance.

Ericsson's approach

Instead of banning minerals from conflict regions or high risk areas, Ericsson supports responsible sourcing. More details can be found in Ericsson’s Statement on Sourcing of Minerals from Conflict-Affected and High-Risk Areas (CAHRAs).

Our commitment and actions

Ericsson is committed to sourcing minerals in compliance with all applicable legislations and aligned with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. Key elements of our approach include:

• Supplier due diligence: This includes screening and auditing suppliers against our Code of Conduct for Business Partners. Suppliers must establish compliant due diligence processes consistent with applicable legislations and the OECD Guidance referred above.
• Transparency and traceability: Suppliers should verify mineral origins, including identifying mines and smelters or refiners. Our suppliers should ensure that the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas are also implemented throughout the supply chain to the point of origin. 
• Source from suppliers certified to sustainability standards: We endeavor to continuously increase the percentage of  conformant smelters or refiners in accordance to the Responsible Minerals Initiative (RMI) standards and  certified mines against credible standards like the International Responsible Minerals Assurance (IRMA) Standard  or equivalent in our supply chain. However, we do not source directly from smelters, refiners and mines . Hence we request our suppliers to implement and escalate such requirements up in the supply chain.  
• Compliance and reporting: Suppliers must demonstrate compliance with due diligence standards and maintaining transparency in the supply chain. One way of doing so is by answering our risk assessments questionnaires, such as the RMI Minerals Reporting Templates. 
• Remediation: Based on the results of our due diligence, suppliers are required to agree on an action plan with Ericsson to reduce sustainability risks in the supply chain.

Our expectations on suppliers 

While we do not directly source minerals, we require our suppliers to avoid entities linked to forced labor, human rights abuses, environmental harm, or unethical practices. 

Suppliers must: 

• Implement effective due diligence processes, in line with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, when sourcing minerals. Please refer to these guidelines as your point of reference.  
• Develop and operate a system of controls and transparency regarding the supply chain, including a chain of custody or traceability system, identifying upstream actors in the supply chain, along with a description of the raw material, including its trade name and type. See our Q&A on Critical Minerals under “Related Links” below for more information on this  

How Ericsson works with the Responsible Minerals Initiative (RMI) 

Ericsson uses a wide range of tools to identify and minimize risks in the minerals supply chain.  

One of these tools is the RMI Minerals Reporting Template that enable us to identify smelter, refiners and mines in our supply chain. We assess them against RMI’s certification. However, we also apply enhanced due diligence mechanisms over identified smelter, refiners and mines, meaning we sometimes identify additional risks not initially addressed by the RMI. 

We encourage non-validated smelters to join the RMI’s Responsible Minerals Assurance Process (RMAP).  

We encourage an environment of commitment and transparency with our suppliers. We commit to sharing such findings with our suppliers and work together towards eliminating such risks from the supply chain.  

Additionally, we support our suppliers with training and feedback. Below is a list of free resources we recommend to our suppliers:  

• OECD Learning Academy on Responsible Business Conduct. Please note there is a special course on OECD Due Diligence for Electronics and Vehicle Parts Supply Chains 
• The UN Global Compact Academy. Within the academy these are some of the resourced we recommend checking: 
• EU Sustainability Navigator Homepage 
• Module 2: Getting started with human rights due diligence 
• Deepening human rights due diligence 

For more information on our policy and efforts, please refer to our FAQ and annual conflict mineral reports (soon transitioning to critical minerals reports) under “Related Links” below.