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Today: June 21, 2024
January 26, 2024
1 min read

Ericsson secures EIB funds for wireless tech advancement.

TLDR:

  • Ericsson has secured €420m ($490m) in funding from the European Investment Bank (EIB) for research into wireless technology. The funding will be used to finance Ericsson’s investments in research and development (R&D) for enhanced wireless technology between 2023 and 2025. These R&D investments are crucial for Ericsson’s goal of reaching net-zero emissions by 2040 by reducing energy consumption in mobile networks globally.
  • By securing the funding, Ericsson will have increased flexibility to drive critical R&D efforts to make its products more competitive and energy-efficient. These efforts will benefit not only operator customers but also other industrial sectors in their sustainability initiatives.

Ericsson has signed two agreements with the EIB for a total of €420m ($490m) in funding for research into wireless technology. The first disbursement of €250m ($291m) was made in December 2023. The loans will help strengthen Ericsson’s balance sheet and provide financial flexibility for its research and development (R&D) investments in enhanced wireless technology between 2023 and 2025. These investments are essential for Ericsson’s overall strategy to reach its net-zero emissions target by 2040 through reduced energy consumption in mobile networks globally.

The funding from the EIB will allow Ericsson to drive critical R&D efforts to make its products more competitive and energy-efficient. This will not only benefit Ericsson’s operator customers but also other industrial sectors in their sustainability efforts. Carl Mellander, Ericsson’s CFO, highlighted the significance of wireless technology in transitioning to a low-carbon economy and expressed the company’s commitment to leveraging the funding to create a positive impact.

This funding from the EIB is an integral part of Ericsson’s overall funding strategy and complements other sources of funding. In December 2023, Ericsson signed a 7-year €100m ($116m) green funding agreement with the Nordic Investment Bank (NIB) to finance R&D investments in wireless technology. Additionally, Ericsson issued a €500m ($582m) green bond in November 2023 to support its sustainability initiatives.

Ericsson has also achieved its first science-based 1.5°C-aligned Paris Agreement greenhouse gas emission reduction targets. Its second round of climate action targets toward net-zero emissions has been approved by the Science Based Targets initiative (SBTi). The company has committed to reducing emissions across its value chain by 90% by the end of 2040 and neutralizing the remaining 10% through approved carbon removals. These achievements reflect Ericsson’s science-based approach to climate action, which aims to benefit the company, its stakeholders, and society as a whole.

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