Information and communication technology company Ericsson announced today the completion of its inaugural green bond issuance, raising €500 million to investments in energy efficiency initiatives.

The bond offering follows the launch, in December 2022, of Ericsson’s Green Financing Framework, with eligible categories for use of proceeds for green bond issuances outlined in the framework including Energy Efficiency and Renewable Energy. In a statement released announcing the green bond deal, Ericsson said that proceeds from the issuance would be exclusively allocated to investments in energy efficiency.

Carl Mellander, Ericsson’s CFO, said:

“The successful placement of this green bond confirms the market confidence in Ericsson’s long-term competitiveness and in our strong sustainability ambitions. Issuing the bond is a direct consequence of our work to fully integrate sustainability into our finance operations, including last year’s launch of our Green Financing Framework.”

Ericsson set a goal in 2021 to reach net zero emissions in its value chain by 2040, with an interim target to halve value chain emissions by 2030. The vast majority – more than 90% – of the company’s emissions footprint is derived from downstream Scope 3 activities, primarily from energy used in the networks delivered to the company’s Communication Services Provider (CSP) customers.

According to Ericsson’s green financing framework, energy efficiency investments funded by green bonds will target digitalization solutions, including include financing capital expenditures, R&D and customer finance loan and lease contracts to modernizations and upgrade of existing 4G, 5G and 6G and supporting technologies that lead to a reduced energy consumption of at least 35% compared to previous generation.

Mellander added:

“The proceeds raised will support R&D investments in enhanced energy performance in both existing and future solutions. This will strengthen operators’ competitiveness and enable further societal climate action through solutions made possible by mobile connectivity.”