Swedish multinational networking and telecommunications company, Ericsson has issued a €500 million green bond. The funds raised from the green bond will be dedicated to investments in energy efficiency and to finance its ESG projects.

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.

Carl Mellander, Ericsson’s CFO, 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”.

To recall, 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.