Ericsson gets EIB funding for wireless technology research
Ericsson has announced that it has signed two agreements for funding with the European Investment Bank (EIB) for a total of EUR 420 million for research into future wireless technology. EUR 250 million was disbursed in December 2023.
In addition to strengthening Ericsson’s balance sheet and financial flexibility, the loans have been granted for the purpose of financing its investments in research R&D in relation to enhanced wireless technology between 2023 and 2025. The R&D investments are an important contributor into Ericsson’s overall plan to reach the Net Zero target by 2040 through reduced energy consumption in the mobile networks globally.
Carl Mellander, Ericsson’s CFO, says: “Wireless technology will play a key role in transitioning towards a low-carbon economy. The signing of the funding agreements with the European Investment Bank provides Ericsson with increased flexibility to drive critical research and development into making our own products more competitive and energy efficient. This will benefit our operator customers as well as other industrial sectors in their efforts to create a positive impact.”
The loans form an important part of Ericsson’s overall funding strategy, complementing other sources.
In December 2023, Ericsson signed a 7-year EUR 100 million green funding agreement with the Nordic Investment Bank (NIB). The loan will finance R&D investments in wireless technology.
On November 23, 2023, Ericsson announced the successful placement of its first green Euro-denominated 500 million 4.5-year bond. The bond was issued within Ericsson’s Green Financing Framework, under the Company’s Euro Medium Term Note Program (EMTN).
In related news, Ericsson has met and surpassed its first science-based 1.5°C-aligned Paris Agreement greenhouse gas emission reduction targets and its second round of climate action targets toward Net Zero have been approved by the Science Based Targets initiative (SBTi).
Ericsson has committed to reducing emissions across the company value chain by 90 percent by the end of 2040 — from 2020 levels. The company is also committed to neutralizing the remaining 10 percent with approved carbon removals.
SBTi, a UN-backed global body that independently assesses companies’ emission reduction commitments and targets in line with the latest climate science, conducted a rigorous assessment of Ericsson’s targets against company initiatives, actions and emission data.
Heather Johnson, Head of Sustainability and Corporate Responsibility, Ericsson, says: “As a technology leader with a strong foundation in research and development, we understand our climate impacts and the importance of limiting global warming to 1.5°C. The SBTi approvals are a testament to Ericsson’s science-based approach to climate action that will ultimately benefit the company, our stakeholders and society.”
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