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An all communicating world. Innovation and Sustainability IN TIMES OF CRISIS. Bengt Wattenstr ö m Director Business Development. Seville, May 2009. Ericsson history - 133 years of leadership. 1876 Ericsson founded by Lars Magnus E. 1892 First sales to China - PowerPoint PPT Presentation
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An all communicating world
Bengt WattenströmDirector Business Development
Innovation and SustainabilityIN TIMES OF CRISIS
Seville, May 2009
© Ericsson AB 2009 2009-05-262
Ericsson history - 133 years of leadership
1876 Ericsson founded by Lars Magnus E.
1892 First sales to China
1900 95% of sales outside Sweden
1905 Operator and manufacturing in Mexico
1923 Manual to automatic
1968 Electro mechanics to computer control
1981 Fixed to mobile
1991 GSM/2G introduced
2001 3G introduced
2005 3G/HSPA, Mobile broadband introduced
2008 First 4G/LTE call demonstrated
© Ericsson AB 2009 2009-05-263
The vision
The prime driver in an all communicating world
• Present in more than 175 countries
• Global leader in Telecommunications
• 77,000 employees
• 19,000 in Research and Development
• 30,000 in Global Services
• Sales 27 billion USD
© Ericsson AB 2009 2009-05-264
Sustainability becoming business critical
Business requirementsOur management system and processes work – risks and opportunities are addressed
Sustainability becomes part of core business, not an add onWe can deliver solutions that beat competition, are profitable, and contribute to sustainability
Global policy Public opinionClimate, health
& povertyrealities
Financial crisis
© Ericsson AB 2009 2009-05-265
CO2 must be cut by at least half by 2050 - while economy triples
Change in lifestyle not enough – innovation & technology key
Growth & sustainability can go hand in hand – with smart infrastucture
Consumers SocietyIndustry
TelecommunicationsAn engine in development of society
© Ericsson AB 2009 2009-05-266
Sustainability defined
What we mean by Sustainability = the triple bottom line.– Economic prosperity. Our direct economic contributions to
society, and the indirect contribution that telecommunications makes to social and economic development.
– Social equity. Communications is a basic human right and should be available to all.
– Environmental performance. Our own performance, and how it can help our customers to minimize their impact, and how we can help to create a more carbon lean economy.
© Ericsson AB 2009 2009-05-267
Life-cycle approach (LCA)
EricssonTransports
Office & manufacturing sitesBusiness travel
Supply chainManufacturing & office sites
TransportsRaw materials & chemicals
Use phaseProducts energy consumption
Offices & storesVehicle fleet
End of lifeRecycling of metalsCollection/Treatment
LandfillResource depletion
Scope: Our products life cycle
© Ericsson AB 2009 2009-05-268
Some of our CR and Sustainability partners
© Ericsson AB 2009 2009-05-269
CO2 per subscriber: Ericsson networks
1985 1990 1995 2000 2005 2010
100
50
150
25
200
An
nu
al C
O2 /
su
bsc
rib
er [
kg]
Year
AMPS
GSMWCDMA
Mobile Subscription now 25 kg CO2 per year – Same as driving car for 1h
© Ericsson AB 2009 2009-05-2610
Understanding ICT’s carbon footprint
ICT responsible for 2% of global CO2 emissionsICT’s share of world economy is about 7% (Revenues/GDP)Mobile telecom is only about 0.2% of CO2 but 1.6% of GDP
How can we reduce our own sector emissions?
ICT key to reduce the other 98% of CO2 emissionsThe enabling effect How can we help reduce other sector emissions?
© Ericsson AB 2009 2009-05-2611
Innovation and technological improvements
address the 0.2%
Ericsson Tower Tube
Village Solar Charger
Green Site Solutions
80% energy efficiency improvement in 3G portfolio 2001-2008
© Ericsson AB 2009 2009-05-2612
CO2 emissions:How ICT can help reduce CO2 overall emissions
1800 1850 1900 1950 2000 2050
Target area 2050(~50-80% reduction)
AnnualEmissions
ICT can help reduceemissions 15-35%
If we reduce our emissions
© Ericsson AB 2009 2009-05-2613
Sustainability offerings
Smart Grid ConsultingSmart Grid Consulting helps utility companies cut through the myriad of AMI & AMM (Smart Metering) solutions available
Environment & SustainabilityStrategic advice on impact of environmental & social issues on business developmentEnergy consumption analysis & prioritisation, benefit analysis and business Casing
Product DematerialisationPromotion of travel replacement, Dematerialization, Combined measures
Transport & LogisticsSupply Chain / Logistics Diagnostic, Evaluation and Strategy
Data Centre EfficiencyEvaluate energy of existing facilities, storage environment and utilisation efficiency and thermal conditions
Life Cycle management“Cradle to grave” analysis of network/mobile phone and operator activities
Ecology managementSafe handling of infrastructure waste from operators
Ericsson Efficient Energy SolutionComplete solution of alternate and renewable power including energy optimization and power saving features.
© Ericsson AB 2009 2009-05-2614
Waste
Agriculture
Forestry
Travel & transport
Buildings
Industry
Energy supply
14%
3%
17%
19%
8%
13%
26%
• Virtual presence• Smart transport
• Digital society• Smart business
• Facility management• Monitor & control
• Smart metering• Energy “Internet”
15-35 %
ICT contribution potential
Global Carbon Emission 2007
49 billion tonSource: IPCC
© Ericsson AB 2009 2009-05-2615
Solutions for the Sustainable City
YOU
The House Hold
The HouseThe Block
The CityTransport SolutionsSolutions For UtilitiesSurveillance systemsHealth Care systemsCare of the elderlyMeetings with many participants
Monitoring of:Water & Energy ConsumptionLightFire AlarmIntrusion detectorDigital Key system
Video conferenceCallcentersHosting of business support systemsE-learningPC-support Datastorage & backupAlert SystemsCar pool system
Remote Control of homeMonitoring of:Energy Cons.LightDigital keysVideo on Demand
M-WalletTravel PlannerCO2 calculatorEco-life guidenceM-Health
© Ericsson AB 2009 2009-05-2616
Healthcare, Care of the Elderly
Example of Service:
Hospital relatedPolyclinicsSpecialistsHome CareRelatives
Movement-sensors
Analysis Equipment- Glucose- Pulse- Carbon dioxide
Camera
Voice controlledRemote control
Sensors- EKG- Temperature- Pain Alarm watch
© Ericsson AB 2009 2009-05-2617
Mobile broadband closes the digital divide
Mobile communication and Internet to 12 village clusters in 10 countries: Ethiopia, Ghana, Kenya, Malawi, Mali, Nigeria, Rwanda, Senegal, Tanzania, and Uganda.
18 villages and 15 towns provided internet services using HSPA
Over 400,000 people in the Millennium Villages throughout rural Africa
© Ericsson AB 2009 2009-05-2618
Challenges and conclusions
Challenges – Lack of cross-industry collaboration– Behavioural changes– Translating hype to facts and figures
Policy areas, innovation and incentives– Intra-sectoral changes will not be enough (i.e., only addresses the
2%)– Need incentives for industry to work cross sectorally – research,
technical innovation, tangible solutions– Governments need to do more to make the ”e’s” and the ”m’s”
happen. Examples could include: Structural funds – shift from railways and roads to ICT Harmonize technologies – economies of scale and
affordability Encourage standardization - key to volume and keeping
prices down
© Ericsson AB 2009 2009-05-2619
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