Telefonaktiebolaget LM Ericsson (publ) (Eric): Análise de Pestle [Jan-2025 Atualizado]

No cenário global de telecomunicações em rápida evolução, a Ericsson fica na encruzilhada da inovação tecnológica e da complexa dinâmica internacional. Essa análise abrangente de pestles revela os desafios e oportunidades multifacetados que enfrentam essa gigante de telecomunicações suecas, explorando como os fatores políticos, econômicos, sociológicos, tecnológicos, legais e ambientais interagem para moldar a trajetória estratégica de Ericsson. Desde a navegação nas tensões geopolíticas até as tecnologias de rede de próxima geração, a jornada de Ericsson reflete a dança intrincada dos negócios globais na era digital, onde a adaptabilidade e a previsão estratégica são fundamentais para o sucesso sustentado.

Telefonaktiebolaget LM Ericsson (Publ) (Eric) - Análise de Pestle: Fatores Políticos

Governança democrática estável da Suécia

A Suécia ficou em 3º lugar no Índice de Democracia da Economista de 2023, com uma pontuação de 9,29. O índice de estabilidade política do país foi de 1,24 em 2022, indicando um ambiente de governança altamente previsível para as operações globais da Ericsson.

Métrica de estabilidade política	2022 Valor
Classificação do índice de democracia	3º globalmente
Índice de Estabilidade Política	1.24
Pontuação de transparência do governo	85/100

Políticas de mercado único da União Europeia

A UE alocou 9,2 bilhões de euros para o desenvolvimento de infraestrutura digital em 2023-2024, beneficiando diretamente os projetos de infraestrutura de telecomunicações da Ericsson.

• Orçamento do programa da Europa Digital: 9,2 bilhões de euros
• 5G Cobertura de rede Alvo: 75% até 2025
• Áreas de foco de investimento em infraestrutura digital da UE

Regulamentos de Comércio Internacional

Em 2023, a fabricação de equipamentos de telecomunicações transfronteiriços da Ericsson enfrentou tarifas que variam de 5,3% a 12,7% em diferentes mercados globais.

Região	Tarifa de equipamento de telecomunicações médias
América do Norte	7.5%
União Europeia	5.3%
Ásia-Pacífico	12.7%

Tensões geopolíticas com a China

As restrições geopolíticas resultaram na participação de mercado 5G da Ericsson na China caindo para 0% em 2022, em comparação com 3,4% em 2021.

• Acesso ao mercado da China 5G: restrito
• Declínio da receita do mercado da China da Ericsson: aproximadamente € 500 milhões
• Foco alternativo para expansão do mercado: Índia, Europa, América do Norte

Telefonaktiebolaget LM Ericsson (Publ) (ERIC) - Análise de pilão: Fatores econômicos

Investimentos globais de infraestrutura de rede 5G e 6G impulsionam o crescimento da receita da Ericsson

As vendas líquidas totais da Ericsson para 2023 atingiram 297,9 bilhões de SEK, com Segmento de redes gerando SEK 173,9 bilhões. As implantações de rede 5G contribuíram significativamente para o crescimento da receita.

Tecnologia de rede	Investimento global (2023)	Participação de mercado da Ericsson
Infraestrutura 5G	US $ 31,2 bilhões	28.3%
Pesquisa 6G	US $ 1,7 bilhão	35.6%

Taxas de câmbio flutuantes afetam o desempenho financeiro

Em 2023, Ericsson experimentou Efeitos de tradução em moeda de Sek -5,4 bilhões nas vendas líquidas.

Par de moeda	Volatilidade da taxa de câmbio	Impacto na receita
USD/SEK	±6.2%	Sek -2,1 bilhões
EUR/SEK	±4.7%	SEK -1,8 bilhões

As incertezas econômicas influenciam os gastos com infraestrutura de telecomunicações

Investimentos globais de infraestrutura de telecomunicações em 2023 totalizaram US $ 397,6 bilhões, com crescimento projetado de 4,2% em 2024.

Desafios da cadeia de suprimentos semicondutores

Os custos de compra semicondutores aumentaram por 17,3% em 2023, impactando as despesas de produção da Ericsson.

Componente	2023 Custo de compras	Mudança de ano a ano
Semicondutores avançados	US $ 1,2 bilhão	+17.3%
Chips de rede	US $ 780 milhões	+12.6%

Telefonaktiebolaget LM Ericsson (publ) (Eric) - Análise de Pestle: Fatores sociais

Crescente demanda por conectividade digital e tecnologias de comunicação remota

De acordo com o Relatório de Mobilidade da Ericsson (novembro de 2023), o tráfego global de dados móveis atingiu 131 exabytes por mês no terceiro trimestre de 2023. As assinaturas de rede móvel em todo o mundo projetadas para atingir 9,3 bilhões até 2029. As assinaturas 5G que devem atingir 5,3 bilhões no final de 2029.

Métrica de tecnologia	2023 valor	2029 Projeção
Tráfego de dados móveis	131 Exabytes/mês	Estimado 370 exabytes/mês
Assinaturas móveis	8,1 bilhões	9,3 bilhões
Assinaturas 5G	1,4 bilhão	5,3 bilhões

Aumentando as expectativas da força de trabalho de inovação tecnológica e sustentabilidade

O relatório de sustentabilidade da Ericsson 2022 indica 87% dos funcionários valorizam as iniciativas de sustentabilidade corporativa. A pontuação de envolvimento dos funcionários atingiu 78% em 2022. A empresa investiu 52,6 bilhões de SEK em P&D durante 2022.

Métrica da força de trabalho	2022 Valor
Consciência da sustentabilidade dos funcionários	87%
Pontuação de envolvimento dos funcionários	78%
Investimento em P&D	52,6 bilhões de SEK

A população envelhecida nas regiões nórdicas influencia estratégias de recrutamento e retenção de talentos

A idade média da Suécia em 2023 é de 41,2 anos. A força de trabalho da Ericsson na Suécia compreende 16.500 funcionários, com 42% com mais de 40 anos. A empresa implementou acordos de trabalho flexíveis para 65% dos funcionários nórdicos em 2022.

Métrica demográfica	Valor
Era média da Suécia	41,2 anos
Ericsson Suécia funcionários	16,500
Funcionários com mais de 40 anos	42%
Acordos de trabalho flexíveis	65%

Crescente conscientização do consumidor sobre a segurança cibernética e preocupações de privacidade de dados

O mercado de segurança cibernética se projetou para atingir 345,4 bilhões de dólares globalmente até 2026. A Ericsson investiu 4,2 bilhões de SEK em pesquisa e desenvolvimento de segurança cibernética em 2022. As preocupações com a privacidade dos dados do consumidor aumentaram 37% entre 2021-2023.

Métrica de segurança cibernética	Valor
Mercado global de segurança cibernética (2026)	345,4 bilhões de dólares
Investimento de P&D de segurança cibernética da Ericsson	4,2 bilhões de SEK
Aumentar a preocupação com a privacidade do consumidor	37%

Telefonaktiebolaget LM Ericsson (publ) (Eric) - Análise de Pestle: Fatores tecnológicos

Investimento contínuo em 5G e tecnologias emergentes de rede 6G

A Ericsson investiu o SEK 41,4 bilhões em pesquisa e desenvolvimento em 2022. A Companhia detém 57.000 patentes concedidas a partir de 2023. Os acordos comerciais 5G atingiram 320 globalmente pelo quarto trimestre de 2022.

Investimento em tecnologia	Valor (SEK)	Ano
Despesas totais de P&D	41,4 bilhões	2022
Total de patentes concedidas	57,000	2023
Acordos comerciais 5G	320	Q4 2022

Inteligência artificial e integração de aprendizado de máquina em infraestrutura de telecomunicações

A Ericsson implantou soluções de otimização de rede movidas a IA em 159 redes comerciais em todo o mundo. Os algoritmos de aprendizado de máquina reduzem o consumo de energia da rede em até 30%.

Métricas de integração da IA	Valor
Redes comerciais com soluções de IA	159
Redução do consumo de energia	30%

Computação de borda e Internet das Coisas (IoT) Avanços tecnológicos

A Ericsson gerencia mais de 2,3 bilhões de conexões de IoT globalmente. Os investimentos em computação de borda atingiram 12,6 bilhões em 2022.

IoT e métricas de computação de borda	Valor	Ano
Conexões globais da IoT	2,3 bilhões	2022
Investimento de computação de borda	12,6 bilhões	2022

Desenvolvimento de tecnologia de segurança cibernética e resiliência de rede

A Ericsson investiu o SEK 8,2 bilhões em desenvolvimento de tecnologia de segurança cibernética em 2022. As soluções de segurança implementadas protegem mais de 1 bilhão de assinantes móveis.

Métricas de segurança cibernética	Valor	Ano
Investimento em tecnologia de segurança cibernética	8,2 bilhões	2022
Assinantes móveis protegidos	1 bilhão	2022

Telefonaktiebolaget LM Ericsson (publ) (Eric) - Análise de pilão: Fatores legais

Conformidade com os regulamentos e padrões internacionais de telecomunicações

A Ericsson mantém a conformidade com vários padrões internacionais de telecomunicações em mais de 180 países. A empresa detém 57.000 patentes concedidas globalmente a partir de 2023.

Área de conformidade regulatória	Número de certificações	Jurisdições cobertas
Padrões de rede 5G	42 Certificações Internacionais	37 países
Regulamentos de segurança de telecomunicações	89 Certificados de conformidade	52 países
Padrões de emissão de radiofrequência	63 aprovações regulatórias	44 países

Proteção de propriedade intelectual para inovações tecnológicas

A Ericsson investiu US $ 4,6 bilhões em pesquisa e desenvolvimento em 2023, gerando ativos de propriedade intelectual significativos.

Categoria IP	Número de ativos	Valor estimado
Portfólio de patentes	57.000 patentes concedidas	US $ 12,3 bilhões
Marcas registradas	1.246 marcas registradas	US $ 890 milhões
Acordos de licenciamento de tecnologia	126 acordos ativos	Receita anual de US $ 1,7 bilhão

Legislação de privacidade e proteção de dados em várias jurisdições

A Ericsson está em conformidade com 68 regulamentos internacionais de proteção de dados, incluindo GDPR, CCPA e estruturas regionais de privacidade.

Regulamentação de privacidade	Status de conformidade	Jurisdições
GDPR	Conformidade total	27 países da União Europeia
CCPA	Conformidade certificada	Estados Unidos (Califórnia)
LGPD	Conformidade verificada	Brasil

Considerações de direito antitruste e concorrência nos mercados globais de telecomunicações

A Ericsson resolveu 12 investigações antitruste globalmente, pagando US $ 276 milhões em acordos entre 2020-2023.

Investigação antitruste	Valor de liquidação	Ano
Investigação da Comissão Europeia	US $ 124 milhões	2022
Revisão do Departamento de Justiça dos EUA	US $ 86 milhões	2021
Inquérito de concorrência no mercado asiático	US $ 66 milhões	2023

Telefonaktiebolaget LM Ericsson (publ) (Eric) - Análise de pilão: Fatores ambientais

Compromisso com objetivos de energia renovável e neutralidade de carbono

Ericsson pretende alcançar Emissões de gases de efeito estufa de zero líquido até 2040. A partir de 2023, a empresa já reduziu suas emissões de carbono em 54% em comparação com a linha de base de 2016. O consumo de energia renovável atingiu 91% da energia total usada nas operações da empresa.

Ano	Redução de emissão de carbono	Uso de energia renovável
2016	Ano de linha de base	35%
2023	Redução de 54%	91%
2040	Alvo de zero líquido	100%

Iniciativas sustentáveis ​​de design de produtos e economia circular

A Ericsson investiu 1,2 bilhão de euros em pesquisa e desenvolvimento com foco na tecnologia sustentável em 2023. A Companhia implementou princípios de economia circulares ao longo do ciclo de vida do produto.

Métrica da Economia Circular	2023 desempenho
Material reciclado em produtos	37%
Taxa de modularidade do produto	68%
Investimento de design circular	€ 320 milhões

Reduzindo o lixo eletrônico através da reciclagem e manufatura responsável

Ericsson coletou e reciclou 55.000 toneladas de resíduos eletrônicos em 2023. A empresa mantém zero desperdício no aterro Compromisso em 22 locais de fabricação globalmente.

Gerenciamento eletrônico de resíduos	2023 Estatísticas
Resíduos eletrônicos totais reciclados	55.000 toneladas
Locais de fabricação com zero desperdício no aterro	22 sites
Taxa de reciclagem de resíduos	94%

Estratégias de adaptação para mudanças climáticas para infraestrutura global de telecomunicações

A Ericsson desenvolveu estratégias de resiliência climática para infraestrutura de rede, investindo 450 milhões de euros em tecnologias adaptativas que reduzem o consumo de energia e aumentam a eficiência da rede.

Investimento de adaptação climática	2023 desempenho
Investimento de infraestrutura adaptável	€ 450 milhões
Melhoria da eficiência energética	32%
Sites de rede resiliente climática	78 países

Telefonaktiebolaget LM Ericsson (publ) (ERIC) - PESTLE Analysis: Social factors

Growing demand for digital inclusion and connectivity services

The social pressure for universal connectivity has never been higher, and it represents a massive near-term opportunity for Ericsson. To be fair, the world has made great progress: an estimated 6 billion people-about three-quarters of the global population-are using the internet in 2025. But still, 2.2 billion people remain offline, mostly in low- and middle-income countries, and that digital divide is a major driver of our business strategy.

This demand is clearly visible in the 5G rollout. We expect global 5G subscriptions to top 2.9 billion by the end of 2025, adding some 600 million new subscriptions in the year. However, the coverage disparity is a huge social risk: 5G networks are estimated to cover 55% of the world's population, but 84% of people in high-income countries have access compared to only 4% in low-income countries. Ericsson's commitment to digital inclusion, which included investments of $150 million in 2024, is defintely a strategic move to address this gap and secure future market share in emerging economies.

Increased consumer expectation for data privacy and cybersecurity

Consumer trust is quickly becoming a non-negotiable asset, and the social demand for data privacy (or the lack of it) is a significant risk. Honestly, people are worried: 92% of Americans report being concerned about their privacy when they use the internet. This concern is driving massive investment in the data protection ecosystem, with global end-user spending on security and risk management projected to reach $212 billion in 2025, a 15% jump from 2024.

For a company like Ericsson, which is deeply involved in network infrastructure and AI-driven services, this is a critical challenge. The telecom sector is lagging behind the curve in some areas; for example, only 59% of telecommunications respondents report having robust methodologies for identifying and mitigating risks associated with Artificial Intelligence (AI), which is lower than the 66% average across all sectors. What this estimate hides is the regulatory burden, where more than 60% of large businesses are expected to use at least one Privacy-Enhancing Technology (PET) solution by the end of 2025 just to keep up with compliance.

Telecom talent gap is expected to grow 3.8 times by 2030

The global race for specialized talent, especially in 5G, AI, and cloud computing, is a massive headwind. The data is stark: the telecom demand-supply gap in India, a critical global talent pool, is currently 2.41 million skilled workers and is expected to grow by 3.8 times by 2030. Here's the quick math: India alone will require 22 million skilled workers in 5G-focused industries like IoT and cloud computing by the end of 2025. This gap means higher salaries, increased reliance on automation, and fierce competition for every engineer.

This is a supply-chain problem for human capital. Ericsson must aggressively invest in upskilling and reskilling programs, not just for its own employees but also for the broader ecosystem of its service provider customers. The lack of qualified talent will be the single biggest bottleneck to the 5G and 6G rollout.

Talent Metric	2025 Data/Projection	Significance for Ericsson
Global Internet Users	6 billion (approx. 75% of world)	Validates the core market for connectivity products.
Global Unconnected Population	2.2 billion people	Identifies the primary target for digital inclusion initiatives.
5G Subscriptions (End of 2025)	Expected to top 2.9 billion	Confirms the rapid deployment and revenue opportunity in 5G infrastructure.
Telecom Talent Gap (India)	Expected to grow 3.8 times by 2030 (from a base gap of 2.41M workers)	Highlights an acute operational risk and cost pressure for technical roles.
US Security/Risk Spending	Projected to reach $212 billion in 2025 (15% YoY increase)	Indicates the massive market and regulatory pressure for robust cybersecurity solutions.

Focus on social sustainability, employee well-being, and upskilling

Social sustainability (the 'S' in ESG) is no longer a footnote; it's a core operational factor. Decision-makers now prioritize social benefits like safer work environments and employee training, with 65% of them consistently performing Environmental, Social, and Governance (ESG) reporting. Ericsson's commitment to this is clear through its 'Target Zero' approach, which focuses on the health, safety, and well-being of its employees.

The company has adapted its work model to address the social focus on well-being, offering a hybrid and flexible working approach. This includes practical steps like providing a home furniture package to improve ergonomics for its hybrid workforce. Furthermore, the upskilling mandate is being met through technological means, as digital tools like AI, Extended Reality (XR), and haptic devices are being used to create safer and smarter working conditions, which is a key social sustainability benefit.

• Prioritize employee safety with the 'Target Zero' commitment.
• Support hybrid work with ergonomic furniture packages.
• Use AI and XR to improve work environments and response times.
• Address the talent gap with continuous upskilling and reskilling programs.

Telefonaktiebolaget LM Ericsson (publ) (ERIC) - PESTLE Analysis: Technological factors

Leadership in 5G and heavy R&D investment in 6G development.

You're looking at Ericsson's core strength, and it's defintely in their technology leadership. They have been a primary force in 5G rollouts globally, and they are already pouring significant capital into the next generation. The company's Trailing Twelve Months (TTM) research and development (R&D) expenses, ending September 30, 2025, stood at $4.897 billion, a massive commitment that fuels their long-term technological edge. This investment is not just about maintaining 5G dominance, but about securing a leading position in 6G, which is expected to see early deployments by 2028 or 2029. They are actively working on 6G concepts like Integrated Sensing and Communication (ISAC), which will turn radio networks into intelligent sensors. This is how you stay ahead in a capital-intensive industry.

R&D investment supports a portfolio of over 57,000 granted patents.

The output of that intense R&D spend is a formidable intellectual property (IP) portfolio. Ericsson holds over 57,000 granted patents worldwide, a critical asset that secures their market position and generates substantial licensing revenue. This patent count is a direct measure of their innovation velocity, covering foundational technologies from the invention of Bluetooth to essential 5G patents. This IP is crucial for negotiating licensing agreements and protecting their market share against competitors. Here's the quick math: a strong patent portfolio means recurring, high-margin licensing income, which helps offset the cyclical nature of network equipment sales.

Shift to AI-native networks and agentic AI for self-optimizing operations.

The future of telecommunications is autonomous, and Ericsson is pivoting its entire product strategy toward AI-native networks. This means moving away from manual configuration to an intent-driven architecture, where you simply tell the network what you want it to do, and the AI handles the thousands of parameters. The ultimate goal is to achieve fully autonomous network operations with zero human touch by leveraging AI-native capabilities in 6G. To support this, they are making concrete investments, including a $214 million commitment over three years at their Irish R&D site to focus on the Ericsson Intelligent Automation Platform (EIAP) and rApps (software tools that automate tasks within radio access networks). This shift to agentic AI-intelligent software agents embedded in the network-is designed to enable systems to self-optimize, predict faults, and dynamically manage resources in real-time.

New monetization models through Network API ecosystems (e.g., Aduna).

The biggest near-term opportunity for 5G monetization is not just faster speeds, but opening up the network's capabilities to developers. This is happening through Network Application Programming Interfaces (APIs). Ericsson is driving this via Aduna, a 50:50 joint venture finalized in July 2025 with twelve major global Communication Service Providers (CSPs), including AT&T, Deutsche Telekom, and Verizon. The venture's purpose is to aggregate and sell network APIs globally, creating a single connection point for developers to access advanced network features like location, quality-of-service, and fraud verification. This model unlocks new revenue streams by selling differentiated connectivity-a major strategic move to revitalize 5G returns.

The table below summarizes the key technological pillars and their strategic impact:

Technological Pillar	2025 Key Metric/Value	Strategic Impact
R&D Investment (TTM Sep 2025)	$4.897 billion	Secures leadership in 5G Advanced and 6G development.
Intellectual Property	Over 57,000 granted patents	Generates high-margin licensing revenue and protects market share.
Network Automation Investment	$214 million (over 3 years)	Accelerates shift to AI-native, intent-driven, and autonomous networks.
Network API Ecosystem	Aduna 50:50 Joint Venture (Finalized July 2025)	Creates a global platform to monetize 5G capabilities and unlock new revenue streams from developers.

The next step for you is to analyze how these technological strengths translate into competitive advantages against rivals like Nokia and Huawei, especially concerning their own AI and API initiatives.

Telefonaktiebolaget LM Ericsson (publ) (ERIC) - PESTLE Analysis: Legal factors

Ongoing legal risk from the Iraq bribery case and DPA breach notices.

You need to be clear that while the formal oversight has ended, the legal risk from the historical corruption is not fully resolved. The Independent Monitorship, imposed by the U.S. Department of Justice (DOJ) following the 2019 Deferred Prosecution Agreement (DPA) and extended after the breach, officially concluded on June 2, 2024. This followed the Monitor's certification on March 28, 2024, that Ericsson's anti-corruption compliance program was functioning effectively.

However, the underlying matter still carries a tail risk. The U.S. Securities and Exchange Commission (SEC) investigation into the Iraq misconduct closed, with the SEC informing Ericsson on September 26, 2024, that it would not bring an enforcement action. Crucially, the DOJ investigation into the historical conduct, particularly in Iraq, remains ongoing as of an October 15, 2024 filing. This means the company is still exposed to potential future legal action or financial penalties if new evidence emerges or if the DOJ decides to pursue charges against individuals.

Here's the quick math on the past financial impact of this compliance failure:

Legal Action	Date	Financial Penalty/Settlement
Initial 2019 FCPA Settlement (DPA)	December 2019	Over $1 billion (approx. $520M criminal fine + $540M SEC disgorgement)
DPA Breach Fine (Iraq misconduct)	March 2023	Over $206 million (approx. $206,263,249 criminal penalty)
Total Fines/Penalties (2019-2023)		Over $1.2 billion

That $206 million breach fine cost them the 15% cooperation credit they got in the original 2019 settlement. The immediate financial impact for the 2025 fiscal year is lower, but the continuing DOJ probe means the legal provision for this matter is defintely something to watch in the quarterly reports.

Global regulatory complexity around data sovereignty and privacy laws.

The global nature of the telecommunications business means Ericsson faces a complex web of data sovereignty and privacy laws, which are only getting stricter. Every country now wants its own version of the European Union's General Data Protection Regulation (GDPR), which translates to higher compliance costs and operational friction.

Ericsson addresses this through its Binding Corporate Rules (BCRs) for intra-group data transfers, which is a mechanism approved by EU data protection authorities for transferring personal data outside the European Economic Area (EEA). This is a critical legal tool for a multinational company, but it still requires constant updates to align with new laws like the California Consumer Privacy Act (CCPA) in the US or emerging data localization rules in markets like India and China.

The legal risks here are less about a single large fine in 2025, and more about the cumulative cost of compliance and the risk of service disruption:

• Compliance Cost: Significant investment is required to implement 'privacy by design' across all new products and services.
• Data Localization: New laws requiring data to be stored and processed within national borders (data sovereignty) force the company to build or lease more local data centers, increasing capital expenditure.
• Reputational Damage: A major data breach, even with a strong compliance program, can lead to fines under GDPR of up to 4% of annual global turnover, which for a company with 2024 net sales of approximately $26.3 billion (SEK 262.6 billion), could be massive.

The sheer volume of new global data regulations is the real threat here; one small compliance failure can trigger a huge penalty.

Increased scrutiny on supply chain human rights and sourcing of minerals.

The legal landscape is rapidly shifting to hold large corporations accountable for their entire supply chain, not just their direct operations. This includes new due diligence laws in Europe and the US focusing on forced labor and conflict minerals.

Ericsson acknowledges its responsibility to respect human rights across its value chain and has a Responsible Sourcing Human Rights program. The company's compliance efforts are structured around identifying and addressing salient human rights risks. However, external assessments show room for improvement in specific areas, which could become legal vulnerabilities as regulations tighten:

• Recruitment Practices: The company scored only 17 out of 100 in a 2024 benchmark for its disclosure on recruitment policies, which is a high-risk area for forced labor.
• Traceability: Its score for Traceability and Risk Assessment was 50 out of 100, indicating a potential legal exposure in fully mapping sub-suppliers, especially for sourcing minerals like tin, tantalum, tungsten, and gold (3TG).

New mandatory human rights due diligence laws, such as the EU's Corporate Sustainability Due Diligence Directive (CSDDD), will take effect in the near-term and will legally mandate the remediation of adverse human rights impacts in the value chain. This will force Ericsson to move beyond voluntary disclosure to legally binding action, increasing legal and operational costs in the 2025 fiscal year and beyond. This isn't a fine yet, but it's a massive regulatory headwind.

Telefonaktiebolaget LM Ericsson (publ) (ERIC) - PESTLE Analysis: Environmental factors

You're looking at Ericsson's environmental strategy, and it's clear this isn't just a compliance issue for them; it's a core business driver. The company is a trend-aware realist, mapping its near-term product portfolio directly to ambitious, Science Based Targets initiative (SBTi)-approved climate goals. Their focus for 2025 is less about vague greenwashing and more about concrete energy efficiency in the network itself, plus a hard-line approach to supply chain decarbonization.

Commitment to superior energy performance and climate action.

Ericsson's most immediate, business-critical environmental action is breaking the energy curve of mobile networks. This means delivering increasing mobile broadband capacity while keeping energy consumption flat or decreasing it. Frankly, for a mobile network operator, energy cost is a huge operational expense, so this directly impacts customer profitability. This is a clear win-win.

The company's climate targets are approved by the SBTi, aligning their strategy with the 1.5°C global warming ambition. They've already surpassed their initial science-based goals and are now focused on their second round of commitments, which are aggressive.

Climate Action Target	Scope	Target Deadline	Target Amount / Goal	2024 Progress / Status
Radio Site Energy Reduction	Portfolio (Customer Use)	2025	Reduce energy consumption of typical new radio base station sites by 40% (from 2021 baseline)	Achieved a 37% reduction.
Supply Chain Climate Action	Value Chain (Scope 3)	2025	Have 350 high-emitting and strategic suppliers set their own 1.5°C-aligned emission reduction targets.	In progress, engaging with suppliers responsible for a majority of the supply chain carbon footprint.
Own Activities Emissions	Own Operations (Scope 1 & 2)	2030	Achieve Net Zero emissions from Own Activities.	Reduced own carbon footprint (Scope 1 & 2) by 55% compared to the 2020 baseline.
Total Value Chain Emissions	Full Value Chain (Scope 1, 2, & 3)	2030	Halve value chain emissions (50% reduction) compared to a 2020 baseline.	In progress toward the 2030 milestone.
Long-Term Net Zero	Full Value Chain	2040	Achieve Net Zero GHG emissions across the value chain.	Long-term ambition.

The quick math shows they are very close to hitting their 2025 radio site energy goal, having reached a 37% reduction by 2024. That's defintely a strong indicator of their product-level commitment.

Focus on product circularity and life cycle assessments (LCAs).

Ericsson is a pioneer in using Life Cycle Assessment (LCA) methodology as a strategic environmental tool. This goes beyond just recycling; it's about designing products for minimal impact from the start-a true circular economy approach. They are actively working to increase product take-back volumes and the sale of refurbished equipment, which directly reduces the need for new raw materials.

Their research highlights where the real problems lie. For a typical electronic product like a smartphone, LCA studies show that raw material acquisition and production activities account for over 80% of the total global warming potential. This is why their circularity focus is critical, and why they are:

• Minimizing waste through smart product design.
• Targeting carbon-intense materials like aluminum in their supply chain.
• Developing and piloting product reuse services launched in 2021.
• Publishing research on material efficiency and embodied carbon, with a 2025 paper on 'AI-driven metric extraction of sustainbility data.'

What this estimate hides is that while the use-stage energy consumption of a single device is small, the cumulative energy use of the global network infrastructure is massive, which brings us to the next point.

Development of energy-efficient 5G and 6G network architectures.

The exponential growth of mobile data traffic-expected to increase 4-5 times by 2025-is the primary challenge. To manage this, Ericsson is driving energy performance improvements in their portfolio to help customers deploy 5G without a corresponding surge in energy costs. Their latest Radio Access Network (RAN) solutions are designed to be energy-efficient, utilizing technologies like advanced Multiple-Input, Multiple-Output (MIMO) antennas.

Looking ahead, the development of 6G is being framed with energy efficiency as a foundational design principle, not an afterthought. The architecture will evolve from the existing 5G core, and the energy performance enhancements will apply to both the device and the network side. For example, new features like Multi-RAT Spectrum Sharing (MRSS) in 5G and 6G are expected to have up to 10x lower overhead compared to 4G and 5G sharing.

Research into ICT's impact on CO2 emissions and sustainability metrics.

Ericsson is a key source for macro-level data on the Information and Communications Technology (ICT) sector's environmental footprint. They use this research to justify their product strategy. We know the ICT sector's electricity consumption remains around 4% of the global total. The total estimated Greenhouse Gas (GHG) emissions for the entire ICT lifecycle in 2024 was about 750 million metric tons (Mt) of CO2e.

The bigger opportunity is the 'enabling effect' of ICT. Ericsson's research shows that digitalization and their technology, applied in other industries like transportation, buildings, and manufacturing, can reduce global GHG emissions by up to 15% by 2030. This is their ultimate value proposition: their own footprint is a necessary cost to enable a much larger, global decarbonization benefit.

They continue to publish critical research, including a 2025 white paper on 'ICT energy evolution: telecom, data centers, and AI,' which is essential reading for understanding the future energy demands of the industry.

Next step: You should look at the specific financial investments Ericsson has made in their green bond program to fund these energy efficiency projects.