Sweden. Telefonaktiebolaget LM Ericsson (publ)
| Date of agreement: | 14 Dec 2023 |
|---|---|
| Country: | Sweden |
| Customer: | Telefonaktiebolaget LM Ericsson (publ) |
| Amount in USD: | USD 106.86 million |
| Amount in EUR: | EUR 100 million |
| Maturity: | 7 years |
| NACE sector / loan type: | Research and development |
This loan contributes to climate change mitigation: 100%
Financing from NIB Environmental Bond proceeds
NEB-eligible share: 100%
NEB category: Energy efficiency
Amount disbursed: EUR 97.4 million
Note: For loans in other currencies than EUR, the equivalent in EUR is based on the exchange rate effective for the disbursement. Read more about the NIB Environmental Bonds
Project
The loan has been provided to finance part of Ericsson’s investments in research and development (R&D) between 2023 and 2025.
The investments support the company’s plan to reach net zero targets by 2040 through reduced energy consumption in the mobile networks globally.
The activities in the scope of this loan project are expected to involve researchers and engineers working across different projects in Sweden.
Ericsson is a Swedish multinational networking and telecommunications company headquartered in Stockholm. The company sells infrastructure, software, and services in information and communications technology for telecommunications service providers and enterprises. During 2022, Ericsson’s investments in R&D totalled SEK 47.3 billion (approximately EUR 4 billion).
Fulfilment of NIB's mandate
Productivity:
Ericsson is among the top five companies for R&D intensity in the Nordic-Baltic region, with an around 18% R&D to sales ratio. The company collaborates extensively with local universities and research institutes. The investments in innovation and skills ensure that the company and the cluster in the member countries maintain their strong position in a competitive and high value-added sector.
The investments in the company’s radio portfolio, among other things, entail in-house development of application specific circuits (ASICs) for Remote and Massive multiple-input, multiple-output (MiMo) radios, Wideband Power Amplifiers (WPA) on Gallium Nitride (GaN), and new thermal solutions.
The developments will significantly improve spectral efficiency, delivering more network capacity for the same amount of spectrum. Combined with advanced antenna systems and smaller components, it will further shrink the size of equipment and the service’s energy consumption.
The power efficiency and weight gains resulting from the activities can be partly seen as a by-product of the development of general 5G network performance.
Environment:
Ericsson’s R&D programme for the development of next-generation radio networks include both radio equipment and antennas.
Compared to the previous generation, the planned improvements are expected to reduce energy use by 20–30% and weight by 25–50%, thus also reducing the embodied carbon footprint.
Reducing the material use for casing will also improve the physical placement of antennas and radios. Smaller units are easier to place on existing masts and can also be sited behind existing antennas.
Energy consumption improvements are primarily based on increased silicon efficiency, multiple radio frequency bands and software enhancements. The new generation base stations will also increase data capacity and output by as much as tenfold compared to their predecessors, without compromising coverage and reach.
Impact indicators in relation to the investments:
- Personnel related R&D Expenditures in Radio portfolio Europe 2023–2025, EUR million
- Energy reduction
- Weight reduction
Sustainability summary
No environmental or social sustainability concerns have been identified in relation to the R&D investments.
