Ericsson Internal | 2018-02-21

EricssonSustainability & corporate responsibility

Heather JohnsonVice President, Sustainability and Corporate ResponsibilityEricsson

Ericsson Internal | 2018-02-21

Managed Services

Long lasting cost efficient performance through smart automation, analytics and business practice

Digital Services

Digitalize service providers through cloud and automation, providing cost efficient cloud native solutions in Core and OSS/BSS

Networks

Highly scalable, modular platforms offering lowest total cost of ownership, best user experience in 4G and leadership in 5G

Technologies & new business

Innovating new sources of revenue for our customers, e.g. in IoT and new partnership based services

Ericsson at a glance

49 000 Patents 180+ countries 210,8 BSEK Net Sales

Full year 2018 figures

95 359 employees

Ericsson Internal | 2018-02-21

25 years of sustainability leadership

1993 1997 2000 2010 2015 2017

First environmental report published

First Group Goal to save energy at every step of

our operations

Establishment of Ericsson Response

Signatory of UN Global Compact

First ICT for development initiative to support the

MDGs and the Millennium Villages Project

Co-founded Connect to Learn

Adoption of the SDGs as the framework for measuring company

impact on society

Climate targets approved by Science Based Target Initiative

2007 2012

Formalized our commitment to UN Guiding Principles on Business and Human Rights

2018

Contribution to the Exponential Climate

Action Roadmap Report

Ericsson Internal | 2018-02-21

Strategic focus

Empowering an intelligent, sustainable and connected worldby relentlessly innovating technologies that are easy to adopt, use and scale

Our company purpose

Responsible business Energy, environment and climate action Internet for All

Drive proactive agenda beyond legal compliance to maintain Ericsson as a trusted partner

Provide sustainable solutions and services through a circular economy approach to create business value

Deploy innovative solutions which improve mobile broadband accessibility and impact the Global Goals

Ericsson Internal | 2018-02-21

Our approach

Impact on society

Ericssonimpacts

Products and industry impacts

Proactive management of Sustainability and Corporate Responsibility topics are a core component of Ericsson’s strategy.

Ericsson Internal | 2018-02-21

Simplifying Ericsson’s sustainability reporting

2017 2018

Annual Report 2017

SCR Report 2017

SCR reporting Objectives SCR reporting Objectives

Annual Report 2018

Ericsson Internal | 2018-02-21

› Reporting principles and compliance

› Sustainability approach and management

› Governance and policies

› Stakeholder engagement

› Assesment process and significant topics

› Risk management

› Performance and results

› Board of Directors approved

› PwC Assured

Sustainability Report 2018 overview

“Ericsson’s sustainability leadership for the past 25 years is a core asset that will continue to be in focus across the company and is becoming an ever more fundamental part of our business.”

Ronnie LetenChair of the Board

Ericsson Internal | 2018-02-21

Sustainability focus in each Business Area

Networks Digital services Managed services Emerging Business and Other

— Invest to improve the energy performance of our offerings and to lower the total cost of ownership for our customers.

— Energy efficiency of products, and sustainable materials management based on reuse and recycling.

— ERS is 5G-ready with the option of remote software installation which contributes to reducing carbon footprint and use of materials.

— Enable telecom operators to engage with modern digital ecosystems. Critical aspects of conducting business in these ecosystems are the protection of sensitive data, and respect for the right to privacy.

— Align with legal requirements for privacy.

— Ensure that privacy is designed into Ericsson’s solutions.

— Automation, machine learning and AI improve network management and contribute to improve safety and reduce negative environmental impact.

— Protection of customer and other sensitive data and the right to privacy are significant topics and their importance will continue to grow with the implementation of 5G.

— Inclusive, risk-based approach to OHS including employees and anyone working or managing networks on our behalf. Safety and wellbeing are of paramount importance.

— Strong, responsible business practices such as management of sensitive data and fair competitive behavior are considered by Ericsson when building partnerships and ecosystems for the future.

— Opportunities from implementation of the IoT and new technology innovation have significant potential for sustainability improvements in society by reducing environmental impact, and improving productivity and safety across industries.

Ericsson Internal | 2018-02-21

Creating business relevance

Topics covered in theSustainability Report 2018

A Anti-corruption

B Radio waves and health

C Information security and privacy

D Respect for human rights

E Responsible sourcing – material sourcing and efficiency

F Responsible sourcing – supply chain management

G Diversity and inclusion

K Management of the legal and regulatory environment

O OHS – accident and safety management

P OHS – employee health and safety

Q Ericsson’s own activities – GhG emissions

R Product energy performance

S Efficient use of raw material

AA Internet for all – access and affordability

Identified significant topicsEricsson regularly assesses its significant environmental, social and economic topics to provide a strong foundation for our sustainability and corporate responsibility priorities. It is a central component of the situation analysis for strategy, target setting, risk management, decision taking and reporting.

Significant topics matrix

The assessment is based on

1. Ericsson’s business impact on environmental, social and economic topics jointly evaluated with all Business Areas.

2. Stakeholder feedback and input from surveys and dialogues with employees, customers and investors.

3. Presentation and approval by Ericsson’s Executive Team.

Ericsson Internal | 2018-02-21

Sustainability and corporate responsibility Report 2018 highlights

*According to a joint research project with the Imperial College in London

Responsible businessStrong commitment to providing a safe andhealthy work environment for all by reinforcing the Occupational Health and Safety Program

Climate action, energy and environmentWe contributed to the Exponential Climate Action Roadmap as part of our climate action advocacy

Socio-economic development

On average 10% increase in mobile broadband adoption ratio causes 0.8% increase in GDP*

Integration to the business

The Sustainabilityreport is presented as a separate report added to Ericsson’s Annual Report 2018

Significant topicsAnnual assessment based on stakeholder feedback of Ericsson’s business impact on environmental, social and economic topics

Ericsson Internal | 2018-02-21

Objectives & results 2018

* Science Based Targets (SBT) approved by SBT Initiative ** New target

Achieve 35% energy saving in Ericsson Radio System compared with the legacy portfolio (2016 baseline)*

Innovate to allow for alternative energy sources to be economically feasible in 25% of the total installed base by 2020

Achieve a 5G product portfolio that is 10 X more energy efficient (per transferred data) than 4G by 2022 (baseline 2017)

Increase to 30% the female representation of executives, line managers and total workforce by 2020

Enable internet for all through roll out of mobile broadband to connect additional 500 million people by 2024 (baseline 2018) **

33% On track On track

23% 132 million

Risk mitigation

Reduce occupational health and safety major incidents by 2020

Address risk assessment for 100% of the top 90% of supplier spend by 2020

Reduce 35% of CO2e emissions from Ericsson’s own activities by 2022 (baseline 2016) *

Reinforce the Company ethics and compliance program with emphasis on anti-bribery and corruption **

Achieve 100% adherence to the sensitive business process and conditions by 2020

On track 98% 8%

On track 98%

Positive impact

Robust Robust Robust

Robust

Robust

Robust

Robust

Warning

Commitment

Commitment

(NEW TARGET)

Ericsson Internal | 2018-02-21

Empowering an intelligent, sustainable and connected world, by relentlessly innovating technologies that are easy to adopt, use and scale

Technology and partnerships are fundamental to our company purpose

ericsson.com/sustainability