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— 2010 — Nokia SustainabilitySUSTAINABILITY Report Nokia sustainability report 2010
— 2010 — NokIA SUSTAINABILITY REPORT CONTENTS
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— 1.0 — SUMMARY OF 2010 Nokia sustainability report 2010 1 SUMMARY OF 2010 4
— 1.1 — INTERView with stephen elop President and CEO of Nokia
In September, 2010, Stephen Elop joined Nokia as the new president and Q What broader/macro trends are affecting Nokia, and how do these CEO. Mr. Elop shares a deep commitment to sustainability principles both influence our sustainability priorities? as a global business leader and as a global citizen. The following Q and A A around the globe, societies face challenging economic situations provides more insight into his perspective on sustainability. and adverse market conditions, which can limit an individual’s ability Q What does sustainability mean for Nokia? to access information that could enrich one’s life. We believe that access to A Sustainability is embedded in everything we do at Nokia, from communication and information is a right, not a privilege. It also is our belief the way we operate to the way we design products to the way we deliver that the democratizing effect of mobile communications, the Internet and services. By connecting more than 1.3 billion people around the world using Information and Communication Technologies (ICT) can strengthen public Nokia phones, we also believe leadership calls for responsibility. As a result, life and the role of citizens around the globe. Through our mobile devices sustainability is not a trend for Nokia, but rather it is our way of conducting and services, Nokia can advance the democratization of information. business, which means encouraging sustainable development, supporting Q how does sustainability support the overall Nokia strategy? sustainable societies and enabling people to make sustainable choices. a our mission remains focused on Connecting People. Recently, we Q What is Nokia’s approach to managing economic, environmental announced a new strategy for Nokia, including a commitment to connect and social issues? the next billion people to the Internet. Today, 80% of the world’s population A incorporating sustainability into our strategy and targets means lives within mobile networks range, yet only 20% of the world’s population minimizing our negative impact and maximizing our positive impact - and has access to the wealth of information available on the Internet. We have we aim to be a leader in both. Education, health, livelihood and the set clear business objectives, and we are delivering new technologies such environment all present global sustainability challenges, and are all areas as proxy browsers and SMS services that will help one billion people make where Nokia can be part of a solution through our business and through their first connection to the Internet. Through this effort, people can reach our strategic social investments, which focus on mobile technologies. information to improve their livelihoods and to adopt more sustainable lifestyles. Q What would you highlight as Nokia’s most important achievements in 2010? A In 2010, Nokia continued to make significant strides in sustainability. Most notably: — We have reached and exceeded the climate targets we set for reduction of our facilities’ CO2 emissions, and those for energy savings in buildings and reduction of power used by our device chargers. — Nokia is leading the industry in the use of sustainable materials, such as recycled metals, bio-plastics and bio-paints. Specifically, the premium smartphones we launched in 2010 are some of our most environmentally-friendly products to date. In fact, the GoodGuide recognizes our contributions through their report rating cell phones based on health, environment and social attributes. The first 26 phones on the list are all Nokia products. — We have created a Nokia human rights approach based on the United Nations and other international Human Rights principles and on our own human rights impact assessments. We are developing metrics on how to measure our performance and development in this area. — Nokia was rated the Global Technology Supersector Leader for the second year in a row by the Dow Jones Sustainability Indexes. We also are consistently rated highly for our sustainability efforts in many other international rankings. Nokia sustainability report 2010 1 SUMMARY OF 2010 5
— 1.1 — INTERView with stephen elop (CONT.) President and CEO of Nokia
Q What have been the biggest challenges or where has Nokia fallen Q how do you see our employees’ role in delivering Nokia’s short of your expectations and targets in sustainability sustainability goals? related matters? a in the same way that sustainability is embedded in everything we A We continue to face challenges around identifying available green do at Nokia, sustainability should be embedded in everything each one of energy. This is causing us to progress more slowly than we would like in us does at Nokia, at home and in our communities. On my first day at Nokia, sourcing electricity from renewable sources. Second, even though we are I sent an email to each employee asking them two questions: what should one of the leading companies in ethical sourcing, and we are actively involved we change at Nokia and what shouldn’t we change at Nokia. I received in joint industry initiatives contributing to the work of industry bodies thousands of responses, and many suggestions for what we should change. to identify potential conflict minerals, we have been frustrated with the But, unquestionably, the number one thing employees believe that we should slowness in obtaining results. However, we are seeing encouraging progress not change is that Nokia “does good” around the world. Deeply engrained, as the results of third-party smelter audits become available to companies sustainability is a value by which Nokia and our employees live. in our supply chain. Q What do you regard as Nokia’s key goals and challenges in 2011? A With our new business strategy, we announced a new path forward focused on growing and expanding our business globally. However, with this new strategy, we also need to rebalance our workforce. While it is our goal to implement our new strategy with as little adverse impact as possible, we will have significant job reductions that will negatively affect people and communities. This will be a difficult year for Nokia, and we are taking responsibility to care for the people we impact by creating an extensive support program. Nokia sustainability report 2010 1 SUMMARY OF 2010 6
— 1.2 — Nokia IN 2010
WHO WE ARE Organizational structure Mobile Solutions Markets Nokia is the world leader in mobility, December 31, 2010 Responsible for developing Responsible for managing our supply driving the transformation and Our organizational structure was re- and managing our portfolio of smart chains, sales channels, brand and growth of the converging Internet designed in July 2010 to position us phones and mobile computers and marketing activities, and for and communications industries. for a world where the mobile phone, developing our suite of Internet delivering our mobile solutions and the Internet and the computer are services under the Ovi brand, with mobile phones to the market. Nokia is committed to connecting fusing together. a strong focus on maps and people to what matters to them by Nokia Siemens Networks navigation, music, messaging and combining advanced mobile tech- Jointly owned by Nokia and Siemens, media. nology with personalized services. provides wireless and fixed network More than 1.3 billion people connect Mobile Phones infrastructure, communications and to one another with a Nokia, from Responsible for developing and networks service platforms, as well our most affordable voice-optimized managing our portfolio of affordable as professional services to operators mobile phones to advanced Internet- mobile phones, as well as a range of and service providers. connected smartphones sold in services that people can access with them. NAVTEQ virtually every market in the world. NAVTEQ is a leading provider of Through Ovi (www.ovi.com), people comprehensive digital map data and can also enjoy access to maps and GROUP EXECUTIVE BOARD related location-based content and navigation on mobile phones, a services for automotive navigation rapidly expanding applications store, systems, mobile navigation devices, a growing catalogue of digital music, Internet-based mapping applications, free email and more. Nokia’s NAVTEQ and government and business is a leader in comprehensive digital solutions. mapping and navigation services, and Nokia Siemens Networks is one MOBILE In February 2011, Nokia announced of the leading providers of SOLUTIONS a new strategy, including changes to telecommunications infrastructure Nokia Siemens our leadership team and operational hardware, software and professional Networks structure designed to accelerate our services globally. speed of execution in an intensely competitive mobile products market. CORPORATE MARKETS FUNCTIONS
NAVTEQ
MOBILE PHONES Nokia sustainability report 2010 1 SUMMARY OF 2010 7
— 1.2 — Nokia IN 2010 (CONT.)
2010 at-a-glance (nokia More Nokia and Nokia Group data are About the report Group level) available in the Key Data tables Sustainability means balancing economic, environmental and Head office in Finland; Production, of this report R&D, sales, marketing activities social priorities so that the needs of the present do not compromise around the world. More information about our the needs of the future. For Nokia this means taking environmental and Total number of employees at organization and other key corporate social considerations into account in managing our operations, and year-end: 132,427 (Nokia Group) information can be found from Nokia’s developing mobile solutions that make a positive impact. Open and Strong R&D presence in Form 20-F Annual Report 2010 transparent reporting of our progress is a key part of our 16 countries sustainability activities. Sales in over 160 countries Nokia has published corporate responsibility reports since 2002 and we have reported our environmental activities continually since 1999. Our previous sustainability report covered the year 2009. our 2010 report highlights Nokia’s performance in the areas Reporting boundary where business practices most affect society and the environment. This report covers Nokia sustainability related activities It covers the key ethical, socio-economic and environmental areas we with focus on year 2010. believe are most material to our business and our stakeholders. Nokia Siemens Networks (NSN), which is approximately learn more about our integrated reporting and materiality 50% owned by Nokia, publishes its own detailed Sustainability Report process and analysis in the Reporting Approach section of on their website. NSN is excluded in this report unless otherwise indicated. this report. in addition to the Nokia and NSN reports and our separate We welcome your views on our activities and our performance. data tables, we have consolidated some key data from both companies Please contact the Nokia sustainability team at (Nokia Group) in one data table which can be found in the Key Data [email protected]. section of this report. Nokia has published corporate responsibility reports since 2002 and we have reported our environmental activities continually since 1999. Our previous sustainability report covered the year 2009.
2010 2009
Net sales (Group), EUR million 42, 446 40,984 Net sales: Devices & services, EUR million 29,134 27, 853 Net sales: Nokia Siemens Networks, EUR million 12,661 12, 574 Net sales: NAVTEQ, EUR million 1,002 670 Operating profit, EUR million 2,070 1,197 Earnings per share, diluted 0.50 0.24 Nokia sustainability report 2010 1 SUMMARY OF 2010 8
— 1.3 — Nokia’s role as part of a solution Summary of global challenges
Our impact Our goal is a world where everyone Nokia believes in the Our sustainability strategy and this is connected and contributing to power of people working together report are designed to address the sustainable development Our starting point is being a sust- sustainability issues that are most It’s a world where Nokia services ainable business which manages its material to our business and to our help our more than one billion own impacts and goes way beyond stakeholders. Our materiality analysis customers make more sustainable what’s required for compliance. process is described in the Reporting choices every day. Where our But our goal is not simply to do less approach section of this report. phones and applications provide bad; we want to have a net positive access to knowledge, and make impact. As a mobile provider, we We have identified seven key impact knowledge powerful. Where better are in a powerful position to use areas, which are the global sustain- information connects people to our core products and services to ability challenges where Nokia can better lives through new ways of help people live more sustainably. play the most significant role as part learning, real-time data on crop Mobile technologies are in the of a solution: prices, basic financial services or hands of billions, and it is by EDUCATIO social networking. Where people working together that we can truly N are only a button away from change the world. We will have a net Resource use connecting to their families, positive impact by harnessing what a nd communities and causes they care we have called “the power of we”: n at u re about. Where our technologies help empowering our employees, conservation ideas come alive and change the customers and suppliers all over way we see the world. the world to maximize the positive EMPLOYME differences they can make. NT Nokia’s pioneering mobile technology is already transforming Our sustainable heritage makes the world and we want to continue us ready to connect the next billion leading the way Leadership in sustainability is part Economic T As demand for mobile technologies of Nokia’s heritage. We have con- DEVELOPMEN continues to grow, we’re faced tributed to progress in our industry with a world of opportunities and and in the world. We have built challenges. Mobile technology has strong foundations, and now we’re incredible potential to drive positive ready to connect the next billion change. But we need to also to a better future. Together, we can manage the impact that its deve- achieve more. Cli m ate nd lopment and use has on society and ge a chan gy the environment. We are ener Health and determined that our business will use safety help solve global issues like climate s change, access to education, health, right n s livelihoods and human rights. Huma and ethic In the following summary we outline the most material issues for Nokia’s business and our stakeholders under each of these impact areas. Nokia sustainability report 2010 1 SUMMARY OF 2010 9
— 1.3.1 — Economic development
The global challenge Nokia’s role Economic development is the engine Mobile technology enables positive Our technologies also enable financial MYSHOP is a tool for entrepreneurs for change in our society. It starts at change on a scale greater than ever innovation. By 2012, 1.7 billion people of all literacy levels. It enables simple the individual level, where people before, and at a time when we need will have a mobile phone but not visual item-based calculation, improve their livelihoods and increase rapid change the most. The links are a bank account. The lack of automatic bookkeeping and stock their own standards of living. At a astonishing. Research shows that bank account poses a critical obstacle management on the go. The societal level, these improvements GDP increases by 0.6% in emerging to economic development, as it is application improves performance create more productive economies. markets when ten more mobile a prerequisite for access to today’s and helps people learn new skills to This is why employment and phones are added per 100 inhabit- global economy. Through services grow their businesses.
productivity are stated cornerstones ants. The impact of increased like Nokia Money, people can use their NOKIA TEJ is a mobile order and supply of the first United Nations Millennium Internet access almost doubles that. phones to transfer money, pay bills chain management tool that makes Development Goal to eradicate Technology industry has also a major and pay merchants for goods businesses more efficient. By poverty and hunger. global role in technology transfer and and services. improving the flow of information human capital development. NOKIA GROUP makes a big difference between business partners, prod- Nokia contributes to economic through the economic impact uctivity increases and paperwork is CASE STUDY development in several ways. Mobile we create as a global company, both reduced. technologies make information directly and indirectly. We have over Supporting livelihoods in OVI MAIL is a free service that provides gathering and sharing easy, effective one billion customers, over 132,000 emerging markets with convenient mobile email access. With Ovi Life Tools and accessible, enhancing the ability employees, sales of 42,4 billion Euros over 8 million accounts activated in to make better real time decisions. in more than 160 countries, profit of just over one year, Ovi Mail has In 2008 Nokia introduced Ovi This helps expand market reach, 2,070 billion Euros, 5,863 billion Euros established itself as the email account Life Tools, a service that enables creating new business opportunities in R&D expenses, 5,808 billion Euros for the developing world. The service people to make better informed and making better tools and skills in salaries and tax payments of 443 supports over 25 languages, and the decisions, find timely, relevant available to more people across million Euros. 1 email account can be accessed on and reliable information, gain the world. NOKIA MONEY is our mobile financial almost 200 Nokia devices, in virtually greater negotiation power and transactions service first launched in every country in the world. access learning opportunities via 2010 in India. It gives people a secure their mobile. For example daily and convenient way to manage their market prices delivered directly money and lowers transaction costs. to the mobile through Ovi Life Tools gave farmer Datarey Bhonge Nokia Listings connects buyers in Barshi, India, a chance to and sellers in emerging economies, increase his profits by 6,000 bringing the benefits of a digital rupees for six tonnes of onions. marketplace to users of basic mobile phones. Through the service people The expansion of Ovi Life Tools into can access information to secure a China, India, Indonesia and Nigeria, job or locate goods and services in helps build skills and support liveli- their local area. hoods by offering agricultural news and crop advice. The population of these four emerging economies combined represents 40% of the total global population.
1 — Nokia Group figures Nokia sustainability report 2010 1 SUMMARY OF 2010 10
— 1.3.2 — Employment and livelihoods
The global challenge Nokia’s role Fulfilling employment is critical Growth in our industry creates jobs, ENTERPRISE WITHOUT BORDERS to human wellbeing. It harnesses our directly and indirectly. In India, agreement with Junior Achievement. initiative and creativity in ways that the mobile telephone industry has Formalized at the end of 2010, the can literally change the world we live provided jobs for 3.6 million people. partnership will conduct entrepre- in, alleviating poverty and promoting This is expected to grow by 30% neurship training in eight countries equality. Lack of employment leads year on year. across Europe and Africa, linking to poverty, deprivation and social students to create opportunities for Nokia employs close to 64,000 people CASE STUDY unrest that affect local and global the future. and helps to support thousands economies. Better jobs for more Making Nokia Data Gathering more by impacting their families and YOUTH DEVELOPMENT PROJECTS AND people support the development of open source to create new communities. Nokia’s indirect impact YOUTH LIFE SKILLS INITIATIVES spon- livelihoods, which contributes opportunities for increases significantly through our sored by Nokia continue to deliver entrepreneurs to enhancing individual and societal supply chain. Keeping our business benefits across regions. For example health and security. Achieving full, profitable is essential to long-term in Latin America our employability In July 2010, we announced the productive employment and growth. To ensure we are financially program has opened doors availability of Nokia Data Gathering decent work for all is part of the sustainable, at times there is a need for thousands of disadvantaged under an open source license. This United Nations Millennium our workforce. young children. solution replaces traditional data- Development Goals. gathering methods (such as paper NOKIA supports employment and NOKIA’S PUBLIC PRIVATE PARTNERSHIP questionnaires) with mobile livelihoods through the salaries PROGRAM WITH THE FINNISH phones, improving result accuracy we provided to our almost 64,000 GOVERNMENT AND INFODEV OF WORLD and saving time and money. Open- employees in 2010. During 2010 the BANK creates mobile laboratories to sourcing means the solution can be number of our employees increased. support innovators and the replicated, customized and localized However, with our renewed strategy incubation of small and medium quickly and easily anywhere in the in 2011 there will be a need for enterprises (SME) in Africa, Asia and world. This creates opportunities personnel reductions. the transition economies of Eastern for local developers and Europe, Caucasus and Central Asia. EMPLOYEE SATISFACTION. 63% of entrepreneurs. In addition, our consumer services employees surveyed in our annual such as Ovi Life Tools and Nokia Since July we’ve seen increased internal survey, Listening to You, say Listings (covered elsewhere in adoption among government, non- that Nokia’s corporate responsibility the report) have positive impacts on government and corporate clients. activities have increased their overall employment opportunities. New examples include the United employment satisfaction. Nations Food and Agriculture LABOR CONDITION ASSESSMENTS Organization (UN FAO) in Kenya, are conducted every second year at which is using Nokia Data Gathering every Nokia production site to ensure to map water points, and Plan safe labor conditions. Kenya, which is applying the service
to birth registrations. All in all, over OUR FIRST SUPPLIER SUSTAINABILITY a hundred organizations have AWARD was established in 2010 as conducted trials of Nokia Data part our commitment to working Gathering using the Nokia hosted with suppliers to build their server, while other organizations capacity. have simply taken it into use. Nokia sustainability report 2010 1 SUMMARY OF 2010 11
— 1.3.3 — HUMAN RIGHTS AND ETHICS
The global challenge Everyone is entitled to human rights Nokia believes our business is a key NOKIA HUMAN RIGHTS SUMMIT IN 2010 and basic freedoms. This is the agent of positive change on human FOCUSED ON THE SOCIAL IMPACT OF foundation of civilized society, and rights. Improved communications MULTINATIONAL COMPANIES. The event the reason why promoting human provide better opportunities for brought together 40 representatives rights is a United Nations Millennium freedom of expression, and there- of various stakeholder groups from Development Goal. It is every citizen’s fore promote civil and political rights non-governmental organizations responsibility to increase access to, as well as economic and social rights. (NGOs) to investors, and other busi- and protect these freedoms. Our business practices reflect our nesses operating in similar environ- As institutions with influence, this is commitment to protecting human ments to Nokia. CASE STUDY particularly true for companies like rights. We promote human rights and PROTECTING CUSTOMER PRIVACY is Nokia. Everyone should enjoy ethics through our own workforce, Raw material sourcing part of our commitment to observing the rights of free expression, access our supply chain, our products and challenges in the Democratic high standards of integrity and Republic of Congo to information, exchange of ideas services and our engagement with ethical conduct in all of our and economic development, and be consumers. operations. The eastern Democratic Republic treated with dignity and respect. NOKIA CODE OF CONDUCT is available of Congo is a conflict zone where ASSESSMENT PROCESSES. Nokia is Nokia’s role in 34 languages and is based on the raw material availability is helping constantly conducting due diligence Recent events across the Middle East highest ethical standards. 98% of to extend the violence. Even to fulfill our responsibility to respect and North Africa give solid evidence our employees not working directly though Nokia does not source human rights and assess any human of the role of mobile technology in production have been trained in or buy metals directly, we are very rights risks that may be associated in realizing human rights. It allows the Code of Conduct as of 2010. concerned about the potential link with our activities, operations and people to bring attention, in real time, between mining and financing of Nokia is committed to the principles relationships. One part of the due to human rights abuses around the the conflict in the region. of the UNITED NATIONS GLOBAL diligence process in 2010 was a world. But even more broadly and in COMPACT and has been a signatory benchmarking study of the human Nokia became aware of the everyday lives of people, mobile and active member since the Global rights environment in 18 countries. this potential link in 2001 and took technology enables transparency and Compact’s inception. The Global action immediately to ban tantalum scrutiny of political processes, and NOKIA SUPPLIER REQUIREMENTS Compact provides a framework derived from illegally mined coltan. can be used to counter dwindling provide clear guidance on what is of responsible business practices Since then, together with the citizen participation in politics. expected from our suppliers. These relating to labor, human rights, anti- electronics industry we have been It brings education and increased requirements include environmental corruption and environmental issues. actively participating in the work awareness to those who traditionally and social expectations, which are to ensure full traceability of metals have been unable to access it, making SUPPORT FOR mWOMEN: based on international standards. In back to their original sources. learning within reach for all. Nokia continues to support the GSM 2010 we introduced four new metrics Nokia has a ban on sourcing raw Association’s mWomen program, related to health, safety and Transparency International sees ICT materials from all conflict areas which seeks to narrow the gender labor issues. playing a key part in the fight against including the eastern Democratic gap in mobile device ownership in corruption. The democratizing effect Republic of Congo and throughout emerging markets. Promoting gen- of mobile communications, noted by 2010 we have remained committed der equality and empowering women the European Commission, will to that ban. We have been working also form one of the United Nations strengthen global interdependency closely with our suppliers and Millennium development goals. and progress. the electronics industry to ensure
commitment to that ban across our supply chain.
Nokia sustainability report 2010 1 SUMMARY OF 2010 12
— 1.3.4 — HEALTH AND SAFETY
The global challenge Nokia’s role Health, safety and wellbeing are critical Information and communication is a OVI LIFE TOOLS help increase access WELLNESS DIARY application helps to building a sustainable world. Three fundamental part of health, safety to healthcare information. From individuals monitor their health and of the eight United Nations Millen- and wellbeing. Mobile technologies pregnancy and maternal health wellbeing through customizable nium Development Goals are related enable quick communications, remote to childcare and disease prevention, features such as the Nokia to health. Achieving these goals monitoring and access to real-time the service delivers daily updates that Step counter for exercising, and the means the challenges of maternal information. For governments and are tailored according to the user’s De-stress monitor for recovering and child health, disease pandemics other institutions, mobile technology location, season, weather conditions, from a busy day. as well as the consequences of severe enables for example tracking or individual circumstances to ensure ACCESSIBLE WIRELESS COMMUNICATIONS natural disasters must be tackled, in the spread of a disease across that the information is useful. for the estimated 600 million people a world with a rapidly growing a geographic region. For individual NOKIA DATA GATHERING supports worldwide who have a recognized population. With a global shortage consumers, it can be mobile phone disaster preparedness and response, disability and others with needs for of 4.3 million care workers, meeting alerts which remind them to take enabling governments and other improved accessibility is a priority these challenges is becoming their pills or newfound inspiration for institutions to collect data quickly and for Nokia. Our goal is to offer increasingly difficult. a healthier life through mobile easily and deliver it for near real-time products that take unique needs into social networks. analysis. In the Amazonas region, our consideration, whether these are in In the areas of disaster prevention service has contributed to the regards to vision, hearing, speech, CASE STUDY and relief, we invest in ways to build reduction of dengue fever mobility or cognition.
resilience to crises and make cases by 93%. Better health through mobile PRODUCT SAFETY. All Nokia devices donations to crisis-affected areas. phone reminders and comply with strict global safety and peer support To help people live more fulfilling quality standards. This includes lives, we design products and operating below relevant international In 2010, we began trials of a concept services with their needs in mind, exposure guidelines and limits that that uses mobiles and social such as applications to aid disabled are set by public health authorities. networks to increase adherence to individuals. We give information about mobile courses of prescribed medicines. phone safety to our customers and The costs of failing to adhere to a are committed to making information course of medicine can be available transparently for significant, for both the individual consumers. and society at large. The success of our trials could have a big impact PARTNERSHIP WITH OXFAM. In 2010, on health and safety. we entered into a partnership with
Oxfam to collaborate in the area of Run in partnership with the Brazilian disaster prevention and government, the project is response. currently being carried out in Belo Horizonte and we expect information on the outcomes by mid-2011. Initially designed for HIV-positive patients on highly active antiretroviral therapy (HAART), it can be adapted for other support needs.
Nokia sustainability report 2010 1 SUMMARY OF 2010 13
— 1.3.5 — EDUCATION
The global challenge Nokia’s role CASE STUDY Around the world, 759 million adults Nokia believes in the fundamental OVI LIFE TOOLS help students and are illiterate. Of these, two-thirds are right for every individual to learn and adults learn English, acquire general Committing to education for all
women mostly living in remote rural grow. Mobile technology frees know- knowledge, prepare for exams and In October 2010, Nokia initiated a areas. Adding to this critical issue, we ledge, information and education access exam results. face a global shortage of 10.3 million from the constraints of classrooms, 5-year partnership with UNESCO. NOKIA’S COMMITMENT TO mWOMEN: teachers. Without education, the libraries, and expensive urban areas. The partnership will harness mobile Supporting this program, which potential for these people to live a Anyone, anywhere, regardless of race, communication to serve individuals empowers women through access fulfilling life is severely limited. Access age, gender or geography should be and support governments as they to mobile technology, is another way to education could help millions of able to access quality education in strive to achieve the goals of the in which Nokia lives out its people realize their initiative, ingenuity affordable manner. In addition, mobile World Declaration of Education for commitment to equal opportunities and passion. The United Nations technology can add new dimensions All. The target date for these for all. objectives to be reached is 2015 recognizes universal primary to learning by increasing the quality and our partnership with UNESCO education as one of the Millennium and interactivity of the experience. UNIVERSITY COLLABORATION: In 2010, has been structured accordingly. Development Goals. Users are able to receive and also the Nokia Research Center had 13 create their own content. strategic partner universities, Nokia will contribute expertise and the Nokia Donations Program relating to technology and policy NOKIA EDUCATION DELIVERY software granted a total of 121 donations to setting in this area. enables the structured delivery further university cooperation. The six Education for All goals cover of quality education materials over access to education, early childhood mobile networks. Combined with NOKIA EDUCATION POLICY TEAM: care and development, quality of teacher training and community Our Education Policy team talks education, equality, literacy and engagement, this has been shown to with governments and educational life skills and lifelong learning. improve study results and increase institutions, helping to shape and During 2010, we deployed projects retention among students, especially modernize education systems and related to access, quality and girls. Already operating in hundreds syllabuses to better reflect the needs equality, and will look to introduce of schools in the Philippines, Tanzania of global competition and the new concepts to address the other and Chile, Nokia Education Delivery ICT revolution. goals in 2011. expanded to Colombia during 2010. MOBILE LEARNING FOR MATHEMATICS is an active learning environment that inspires pupils to practice math. It combines a mobile exercise bank with social networking. Results have demonstrated a marked improve- ment in the learners’ math results and skill levels. Nokia sustainability report 2010 1 SUMMARY OF 2010 14
— 1.3.6 — Climate change and energy
The global challenge CASE STUDY Climate change is one of the greatest Nokia is at the forefront of this REDUCING EMISSIONS FROM AIR TRAVEL. challenges the world is facing. From change, and we’re leading by example, Our CO2 emissions from air travel Helping consumer reduce their co2 emissions natural disasters to food security to cutting our own emissions and have been reduced by 40% from
rising sea levels, it impacts across our working with suppliers to design more 2008 base level. economy, society and environment. efficient systems. We also help One of the key ways Nokia REDUCING NO-LOAD POWER used by This is why ensuring environmental consumers find ways to reduce their can make a positive impact through our chargers is a target we have not sustainability, in which climate change own carbon footprints and enjoy the our core technologies is by helping only achieved, but exceeded. Between action is the key, is one of the United wider benefits of sustainable life- consumers to reduce their own 2006 and 2010, we reduced the no- Nation’s Millennium Development styles. In 2010 we ranked first in the carbon footprints. Assume, load power used by our chargers by Goals. Experts estimate the cost whole global technology sector on for example, that just 10% of the 50%. Over the last decade, we have of inaction will be a minimum of the Dow Jones Sustainability Index. people using Nokia devices would reduced the average no-load power 5% of global GDP, and potentially We were also one of the three leading do the following with Nokia devices consumption of our chargers by over up to 20% 2. Acting on climate IT sector companies for both the and services for one year: 80%, and our best-in-class chargers change will drive progress, from disclosure and performance rankings by over 95%. — Use their mobile device for creating jobs to enabling further of the Carbon Disclosure Project.
attending a meeting once instead clean development. NOKIA REDUCED THE PACKAGING SIZE REDUCING FACILITY EMISSIONS. We of travelling to the meeting by plane of our most affordable devices Nokia’s role reached and exceeded our targets by over 70% from 2005 to 2010. This — Use their mobile device to work Although the ICT sector is not to reduce facility related CO2 amounts to 240,000 tonnes of saved remotely once a week instead particularly energy-intensive, it’s a emissions by 10% in 2009 and 18% paper. Smaller and lighter packaging of driving to work rapidly growing industry and we have in 2010 compared to 2006 level. a responsibility to reduce our share has also reduced transportation — Use their mobile device instead of the CO2 emissions. Our real impact INCREASING ENERGY EFFICIENCY. We needs. In theory, we now only need of buying a separate music player, comes from providing innovative created 8% of new energy savings one-third of the number of trucks to camera, video camera, PC, fixed solutions that enable others to cut in technical building maintenance transport these products. line telephone and a car navigator systems between 2007 and 2010, theirs. Technologies like videocon- A RANGE OF ECO APPLICATIONS in addition to the savings of 3.5% The combined impact of these ferencing and remote working slash was launched in our Ovi Store in early already achieved from 2003 to 2006. actions could reduce global emissions by reducing the need for 2010 to engage our customers in CO2 emissions by over 220 million carbon-intensive business travel. GREEN ELECTRICITY PURCHASING is an what they can do to reduce their own tonnes. That represents nearly the We’re moving from product- ongoing challenge we are committed carbon footprints. One example is same amount as the annual fossil to service-driven business models, to tackling. We have been increasing Climate Mission, an educational game fuel-based CO2 emissions of the reducing the material impact of our the purchase of green electricity since about climate change. countries of Sweden, Chile, and products. We’re merging several 2006 and are currently encountering Vietnam combined. products into one, known as slower than expected renewable convergence, by combining cameras, energy market development. phones, PDAs, Mp3 players and GPS into a single device. REDUCING OUR EMISSIONS ACROSS THE DEVICE’S LIFE CYCLE. Our aspirational target is to reduce the greenhouse gas emissions caused during the whole device life cycle by over 60% by the year 2020 compared to the level in 2000. To reach this, we have set ourselves targets for specific 2 — Nicholas Stern, Stern Review on the Economics of Climate areas of the device life cycle. Change, (Cambridge) Nokia sustainability report 2010 1 SUMMARY OF 2010 15
— 1.3.7 — Resource use and nature conservation
The global challenge Nokia’s role The world has finite resources Mobile technologies are continuously INDUSTRY FIRSTS IN SUSTAINABLE CASE STUDY and raw materials to supply us with. helping to dematerialize the MATERIALS: We’re using recycled Developing efficient packaging People are using these resources and economy. We’re replacing physical metals, bio-plastics and bio-paints solutions
degrading our environments faster products with services. Converging in our devices. We’re proud to say than the planet can recover them. This several devices into one single, small the Nokia C7-00 is the first in Packaging is an ongoing focus for threatens the promise of progress device also cuts the amount of the industry to use bio-paints and us. We choose materials for our for future generations. In some cases resources we need. the Nokia C6-01 is the first to use packaging which offer the best, it’s already creating or contributing recycled metals. For every one million phones most beautiful and most protective to violent conflicts in the developing recycled, we can recover nearly 15kg 100% recyclable materials in all solution with least environmental world. This is why ensuring environ- of palladium, 35kg of gold, 350kg our phones: 100% of the materials impact. All our packaging is 100% mental sustainability is one of the of silver, and 16 tonnes of copper. in Nokia devices can be used again recyclable and more than 95% of United Nation’s Millennium By recovering and reusing these to make new products or generate our packaging is made from Development Goals. materials, it is possible to avoid the energy. That means nothing needs renewable, paper-based materials, Increasing consumption is an energy and environmental costs to go to landfill. of which up to 60% is recycled issue. In a year, more than one billion associated with the extracting, content. When plastic is used, Recycling programs in close to 100 new handsets are produced in the processing and production of we are able to include up to 90% countries: We offer the industry’s world. This consumes resources and new materials. recycled content. largest voluntary recycling scheme increases e-waste especially if we do At Nokia life cycle thinking defines the for used mobile devices and In May 2010, we started selling not take proper actions. way we design all of our products with accessories in almost 100 countries the Nokia 6700 slide also the least environmental impact. Our around the world, with over 5,000 without a charger at Nokia targets are not driven by regulatory physical take back points. We run Branded Retail shops in the UK compliance, but we go beyond legal marketing campaigns to raise aware- and Portugal. The device comes requirements to create more value ness and help our customers to find in an ultrathin flat package that with less impact in everything we do. their nearest recycling point. also includes a small user guide, Nokia continues to be ranked best short data cable and a headset. Nokia is the first mobile phone man- in our industry by the Greenpeace The environmental impact of ufacturer which, in close cooperation Guide to Greener Electronics, for selling the Nokia 6700 slide with- with its suppliers, has full m at e r i a l managing the impact of our products out a charger in a tiny package is declaration for our mobile devices. on the natural environment and around 25% smaller compared with This means we can respond swiftly using resources effectively. the standard Nokia 6700 slide if new concerns arise about the package with a charger. impact of substances we use.
First company to join the International Union for the Conservation of Nature Save our Species project, which calls on businesses to help build the biggest global species conservation fund by 2015. Nokia believes business has a role in safeguarding the rich variety of life on earth, and is proud to be the first company to join the project. Nokia sustainability report 2010 1 SUMMARY OF 2010 16
— 1.4 — Our sustainability approach
PRODUCTS AND SERVICES
Products Today, we are proud to say we have the environmentally leading product range in the industry. Substance and materials management We’re an industry leader in substance and materials management. The way we make all of our products is guided by life cycle thinking.
We focus on continuously reducing substances of concern, and exploring and introducing new, innovative and environmentally friendly materials. Sustainable lifestyles We aim to offer people products and services that help them make sustainable choices. We design applications that connect our customers to the things they care about, and we create built- In order to maximize our positive in product innovations that help them reduce their own impact in our key impact areas, we environmental impact. are taking action across our business, and working with our 1.3 billion Mobile technology for development We provide services for consumers and organizations in both consumers to do the same. emerging and developed markets. Our goal is to increase access to our technologies and help everyone benefit from them. Sustainability is an integral part of our business strategy. We take a Take-back and recycling We focus on providing easy take-back and recycling solutions systematic approach to identifying around the world, with over 5,000 touch points in close to 100 the opportunities and risks countries. By raising awareness, we aim to create a sustainability presents, and we aim recycling culture globally. to minimize the negative impact of our operations and maximize the positive impact. PEOPLE With over a billion customers around the world, we have a unique Employees The Nokia Way defines how all of us work at Nokia, from our opportunity to make an impact that employees through to cooperation with our suppliers. We believe goes beyond managing our own that diversity and inclusion in the workplace brings competitive activities. In fact, we make a net advantage, and we’re committed to ensuring sound labor positive impact by offering people conditions, health and wellbeing, and training and development. products and solutions that empower them to make more sustainable Customers Delivering customer satisfaction is not only about meeting needs, choices. but about creating value for our customers and consumers by increasing the sustainability of our devices throughout the This report is organized around product lifecycle. We continuously research the views of both the three areas which help deliver groups to understand where we are succeeding and how we our goal of connecting everyone to can do better. We are committed to protecting sustainable development: our customer privacy. products and services, our people and our operations. Our targets are supported by global principles and standards and go way beyond compliance. Nokia sustainability report 2010 1 SUMMARY OF 2010 17
— 1.4 — Our sustainability approach (CONT.)
PEOPLE
Other Stakeholders We take a transparent and stakeholder-focused business approach. Our most important stakeholder groups are our employees, customers, suppliers and shareholders. We also maintain strong relationships with sector partners, governments, NGOs and the wider community.
OPERATIONS
Supply chain We promote environmental, ethical and social principles across the supply chain. To drive sustainable improvements, we go beyond assessments to work closely with our suppliers through face-to-face meetings, development programs, trainings, and performance metrics and targets. Environmental management Environmental matters are everyone’s responsibility at Nokia. We’ve used the ISO 14001 across our business as a foundation for environmental management for over 15 years. Energy efficiency We focus on introducing energy savings and emissions reduction measures across our operations. Because many of the challenges
we face are common to our sector, we look for opportunities
to share new solutions with our industry peers. Environmental impact We show leadership by reducing our emissions and waste in our factories, facilities and offices. We also require our suppliers to take measures to reduce their impact.
Sustainability at Nokia Siemens Networks Nokia Siemens Networks’ 2010 Sustainability Report has more examples of how mobile technology can make a difference. Nokia sustainability report 2010 1 SUMMARY OF 2010 18
— 1.5 — Key achievements and challenges in 2010
01 achieving our climate 04 making Nokia Data Gathering 09 gaining better traceability to Strategy targets open source origins of raw materials — We reduced the average charger’s We open-sourced Nokia Nokia has a ban on sourcing no-load power consumption 50% Data Gathering, a service which helps raw materials from all conflict areas percent by the end of 2010 (2006 governments, non-profit organiza- including the eastern part of the baseline) tions and corporate clients collect and Democratic Republic of Congo. The — We reached and exceeded our manage information. Open-sourcing traceability of minerals has been a targets to reduce facility related CO2 means the solution can be replicated, challenge. The situation was improved emissions by 10% in 2009 and 18% customized and localized quickly and with the start of the third-party in 2010 (2006 baseline) easily anywhere in the world. smelter audit program by EICC-GeSi This creates opportunities for local Extractives Working Group where We created a climate strategy in 2006 developers and entrepreneurs. Nokia is an active participant. which includes a range of targets aimed at increasing energy efficiency 05 iNtroducing industry firsts in 10 cReating a recycling culture in our products and operations. We’re Sustainable materials across the globe and in the EU proud to have achieved two of our We’re the first to use recycled metals, Part of our take-back and recycling targets in 2010, creating greener bio-plastics and bio-paints in our top programs is raising awareness with buildings and improving our chargers devices, some of them as consumers to create a recycling to become best in class. industry firsts. culture. We continue to face huge 06 partnering with the variations in the success rates 02 cReating a Human Rights iNternational Union for achieved between EU countries and approach and metrics conservation of Nature on the increasing the take-back amount is Our first Human Rights approach and Save our Species (SOS) project an ongoing challenge. The EU has set metrics are being developed based We’re proud to be the first company a target of collecting four kilos of on our Corporate Human Rights to join the ‘Save our Species’ project, e-waste per inhabitant. Impact Assessment and the out- supporting threatened animal and comes of the inter-industry Nokia plant- species and their habitats. Human Rights Summit. 07 gRanting our first Supplier 03 Ranking No.1 in our sector Sustainability Award on the Dow Jones Sustainability As part our commitment to working Index with suppliers to build capacity, we’ve We have been named the Technology awarded our first annual Supplier Supersector Leader by the Dow Sustainability Award. Jones Sustainability Indexes, placing us first in the entire global technology 08 adjusting to green energy sector for the second year in a row. availability We have been increasing the purchase of green electricity since 2006 and are currently encountering slower than expected renewable energy market development. Nokia sustainability report 2010 1 SUMMARY OF 2010 19
— 1.5 — Key achievements and challenges in 2010 (CONT.)
2010 Rankings
ORGANIZATION RANKING
Dow Jones Sustainability Indexes Review Technology Supersector Leader Nokia was chosen as Global Technology Supersector Leader, making Nokia number one across the entire global technology sector in the Dow Jones Sustainability Indexes Review for the second year in a row. Carbon Disclosure Project One of the three leaders Nokia was one of the three IT sector leaders in both performance and disclosure rankings of the Carbon Disclosure Project. Forbes World’s Most Sustainable Number 5 overall Companies Nokia ranked fifth in the annual Forbes ranking of the World’s Most Sustainable Companies. Forbes bases its system on ten environmental, social and governance performance metrics, such as energy and waste productivity. Greenpeace Guide to Greener Electronics Leader Nokia ranked first in the 16th edition of the quarterly Greenpeace Guide to Greener Electronics. The guide ranks the 18 top manufacturers of personal computers, mobile phones, TVs and games consoles according to their policies on toxic chemicals, recycling and climate change. http://www.nokia.com/environment
Nokia sustainability report 2010
— 2.0 — PrOGRESS IN DETAIL: Products and services Nokia sustainability report 2010 2 Progress in Detail: Products and services 21
— 2.1 — Environmentally leading product range
Substance and materials 2000 2010 2010 SNAPSHOT management nokia 3310 nokia X2 We’re an industry leader in substance Nokia C7-00 is the first in the and materials management and the industry to use bio-paints first mobile phone manufacturer to have a full material declaration of our mobile devices. Our main objective Nokia C6-01 is the first in the -65% is to know all the substances in our industry to use recycled metals products, not just those that raise concerns, and to know they are safe 46 new Nokia models intro- for people and the environment duced in 2010 are free of when used in the proper way. brominated and chlorinated This means we can respond swiftly compounds and antimony if new concerns arise about the trioxide, all voluntary phase-outs substances we use. All our mobile devices and access- ories worldwide are fully compliant with the EU Directive on the Calculated as the energy use over Restriction of the Use of Certain the product life cycle Hazardous Substances in Electrical and Electronic Equipment (EU Design for the environment RoHS). Additionally, our products At Nokia we think every device should We take a proactive approach when do not contain substances included be made with the environment in considering how our activities might in the current EU Regulation on mind, so we continuously improve impact the environment. Our product Registration, Evaluation, Authori- the environmental credentials creation is guided by life cycle zation and Restriction of Chemi- of all our products. Our eco lead thinking to minimize the environ- cals (REACH) Candidate List of devices have the widest range of mental impacts across the lifecycle Substances of Very High Concern, environmental features as well as of a product. Life cycle assess which the EU REACH regulation new innovations, which are gradually ments help us identify and focus requires to be reported. implemented across our product our activities where we can best Since 2006, we have also voluntarily portfolio. Today, we are proud to contribute to environmental phased out PVC from all mobile say we have the environmentally improvements. During the last devices and enhancements. leading product range in the industry. decade we have reduced our environmental impact by up to During product creation we focus 65% (calculated as the energy use on energy efficiency, sustainable over the product life cycle), while use of materials, smart packaging also introducing new features and and creating environmental services capabilities that allow the mobile which engage people to adopt more phone to become a multifunc- sustainable lifestyles. Effective end- tional device, and thereby reducing of-life practices close the life cycle the need to buy multiple devices loop, putting energy and valuable for different purposes. materials back into circulation. Nokia sustainability report 2010 2 Progress in Detail: Products and services 22
— 2.1.1 — Design for the environment
Understanding our impact from Energy use start to finish At Nokia we use an externally 57% Raw materials and audited Life Cycle Assessment (LCA) component manufacture methodology to calculate the 4% Nokia factory environmental impact of our products 11% Transportation and processes. LCAs help us identify 27% product use and focus on the areas where we 1% Recycling can make the biggest reductions. Our calculations include the entire mobile device life cycle, from raw material acquisition to the end of the product life. We also assess energy efficiency, sustainable use of materials and smart, sustainable packaging. The LCA methodology of Nokia’s Eco Profile for products was audited during the spring of 2010. OUR PROGRESS IN 2010 Greenhouse gas emissions In 2009, we published the life cycle We’ve been publishing Eco 78% Raw materials and assessment of a typical Nokia mobile Declarations for our products since component manufacture device. This assessment measured 2003. In May 2010 we began 2% Nokia factory the energy use across the entire life providing Eco Profiles for all our 7% Transportation cycle of the device (pictured right). new products containing 12% product use The amount of energy consumed information on products’ 1% Recycling during the entire life cycle is around environmental impact. The profiles 220 megajoules (MJs) and the total contain basic information on the emissions are 26kg of CO2e. This is environmental attributes equal to driving 167km in a typical of a device including material family car. use, energy efficiency, packaging, disassembly and The biggest impact throughout the recycling, as well as information life cycle comes from raw materials on the environmental impact of and component manufacturing, our products. which makes up 57% of total energy use and 78% of total emissions. Our mobile device production facilities account for 4% of total energy consumption, transportation is 11%, device usage 27%, and recycling 1%. Nokia sustainability report 2010 2 Progress in Detail: Products and services 23
— 2.1.2 — 100% RECOVERED Substance and materials management
We operate in a world of limited resources and escalating pressure on the natural environment. Many of the substances and materials which go into mobile technologies raise questions about human rights, because they can be hazardous or sourced from conflict areas. Meeting these challenges requires careful management across our supply chain and throughout the product life cycle.
We’re an industry leader in substance and materials management
We’re an industry leader in substance and materials management and the first mobile phone manufacturer to have a full material declaration of our mobile devices. Our main objective is to know all the substances in our products, not just those FREE OF BFR AND RFR that raise concerns, and to know they are safe for people and the environment when used in the proper way. This means we can respond swiftly if new concerns arise about the substances we use. Meeting health and environmental regulatory requirements is a basic requirement. We use legal compliance not as a mere baseline but as a starting point from which to grow. Our focus is on continuously reducing substances of concern, and exploring and introducing new, environmen- tally friendly materials. Take-back and recycling is also a major part of our solution to the issue of limited resources Nokia sustainability report 2010 2 Progress in Detail: Products and services 24
— 2.1.3 — Packaging – a small package makes a big difference
2005 2010 Excluding chargers from the sales box The weight and size of packaging In May 2010, Nokia started selling affects not only material use but the Nokia 6700 slide also without also the emissions and energy a charger at Nokia-branded retail required to transport and store shops in the UK and Portugal. The the products. Between 2005 and device comes in an ultrathin flat 2010 we reduced the packaging package that also includes small size of our most affordable devices user guide, short data cable and by over 70%. This amounts to a headset. The environmental 240,000 tonnes of saved paper. impact of selling the Nokia 6700 Smaller and lighter packaging has slide without a charger in a tiny also reduced transportation needs. package is around 25% smaller In theory, we now only need one- when compared to the standard third of the number of trucks to Nokia 6700 slide package with a transport these products. charger. This is basically due to reduced use of materials and Learn more about how packaging reduced logistical impact. Excluding helps us with green logistics. the charger from the sales box also Looking at our entire portfolio, enables reductions in both energy our packages are now 50% smaller consumption in the production (the weighted average volume phase and in the end-of-life treat- reduction 2005 -2010) in size than ment needs. in 2005 and we continue to make 70% reduction in them even smaller. More than 95% packaging size of our packaging (roughly 44,000 tonnes) is made from renewable, paper-based materials, of which The materials we choose for our up to 60% is recycled content. packaging are selected to offer And when plastic is used, we are the best, most beautiful and most able to include up to 90% recycled protective solution with the least content. We are constantly working environmental impact. An effective with our suppliers to increase the way to reduce the environmental amount of recycled content in impact of packaging is through our packaging. All our packaging making the sales packages smaller, is 100% recyclable. selecting sustainable materials and making sure packaging can be recycled when it’s no longer needed. Already in 2006 Nokia introduced small, compact packaging which has become the industry standard for mobile phones. Our compact packages are made of a single material, which makes them much easier to recycle. Nokia sustainability report 2010 2 Progress in Detail: Products and services 25
— 2.1.4 — Sustainable sourcing
Voluntary commitments, Facing up to challenges across OUR PROGRESS IN 2010 big impacts our supply chain Nokia is the first mobile phone Voluntary phase-outs There are typically four to eight We are actively working on industry manufacturer to have full material Since 2006, we have voluntarily supplier layers between Nokia and initiatives, such as within the Global declaration for all its mobile devices. phased out PVC from all Nokia- any mining activities. Despite this e-Sustainability Initiative (GeSI) Our devices and accessories do not branded mobile devices and complexity, we are actively working and the Electronic Industry contain substances included in the enhancements. We are currently on increasing transparency to Citizenship Coalition (EICC) to current EU candidate list of phasing out the use of brominat- improve the overall traceability improve the traceability of minerals. Substances of Very High Concern, ed and chlorinated compounds of metals and minerals. We aim to We are pleased to see recent which the EU REACH regulation and antimony trioxide in our new understand the commitments of developments, such as the smelter requires to be reported. Furthermore, models. We are proud to say that each tier of the supply chain through audit validation processes by EICC we voluntarily give full information at the end of 2010, a total of 46 dialogue both at an industry level and GeSI, and the conflict metal on our substance management in new Nokia models are free of and with stakeholders. legislation in the US. An effective the Nokia Substance List. We’ve these substances, as defined in and sustainable solution requires We have banned the use of so-called worked closely with our suppliers the Nokia Substance List. that all companies and industries conflict metals and minerals and to achieve this. using metals follow the same rules Using more environmentally take continuous action to ensure and apply the same practices. Our sourcing organization and friendly materials that metals from the conflict areas suppliers play a key role in ensuring This year we started to use do not end up in our products. We Read more about our our components and parts are recycled metals. Some compo- strictly condemn any activities that supply chain. safe and compliant with the Nokia nents used in this industry may benefit militant groups or fuel conflict. Substance List (NSL) requirements. already contain a portion of Since 2001, we have demanded Every year we monitor the candidate recycled metal, but what makes written assurance from our suppliers list of “substances of very high our approach different is the in- to ensure our products do not contain concern”, comparing it against our troduction of a process and clear tantalum derived from coltan material content data that we collect requirements for the use of recy- originating in conflict areas (such from our suppliers. This helps us cled metals. This has increased as the eastern parts of the to identify potential risks and the ratio of recycled content Democratic Republic of Congo). determine necessary actions to take. significantly. For example, for We have expanded this practice to stainless steel we require 75% certain other suppliers who provide In June 2007, the EU REACH recycled content and as much as components containing tungsten regulations came into force. This 97% for nickel silver alloy. (from wolframite) and suppliers of requires companies to report the tin solder (from cassiterite). Further- chemical substances they use their Our Nokia C6-01 is the first more, all of our key suppliers are products that are considered as device in the industry to use required to map their supply chains “substances of very high concern”. recycled metals in significant proportions. It contains both for the metals in their components Since the introduction of the Nokia recycled stainless steel and re- back down to smelter and then to 3110 Evolve in 2007, we have cycled nickel silver alloy in some source. continued to research and implement of its inter bio-based materials in selected
parts of our products. We are also
working to phase out the use of
beryllium in certain component
technology areas where there are
alternative materials and technologies
available. Nokia sustainability report 2010 2 Progress in Detail: Products and services 26
— 2.1.4 — Sustainable sourcing (CONT.)
Driving progress in our industry Working on sustainable timber We are working to promote good We are progressing with a global conduct and to develop and deal to ensure all timber used in deploy a consistent set of tools the construction and fit-out work and processes to measure, of owned Nokia retail stores comes monitor and improve sustainability from verifiable and sustainable performance across the ICT sources. This has proved particu- sector. As part of our membership larly challenging in our emerging of the GeSI Supply Chain Working markets. The requirement for Group (SCWG), we actively sustainable timber has also been participate in the Learning and extended to franchisees and Capability Building, Validated Audit letters of conformance were Program and Extractives working requested in 2010. groups’ collaboration with EICC. Many of the supply chain chal-
lenges we face, such as the traceability of metals, are similar ECO-FRIENDLY across the electronics industry. Collaborating with other compa- nies and industry groups to help develop solutions is essential. We have been a full member of GeSI since 2007 and a member of the GeSI SCWG since 2004 and are pleased to be part of the industry that has picked up the ball and worked out a validation process that will provide a third-party assurance that smelters do not source minerals from conflict areas. Nokia sustainability report 2010 2 Progress in Detail: Products and services 27
— 2.2 — Sustainable lifestyles
Helping consumers save energy 2010 SNAPSHOT Mobile technology has an We develop energy-saving fea- important role to play in sustain- tures for our devices, which help Environmental applications for sustainable lifestyles offered able lifestyles. With over a billion people use less energy. As well as through the online Ovi Store consumers and counting, Nokia the convergence of our devices, can go beyond merely minimizing Nokia now features power-save our impact, to create a net positive mode and energy-efficient OLED 300,000 monthly downloads from the Ovi Store impact. displays and “unplug charger” As a mobile provider, we have reminders across our product the unique opportunity to reach line. Since our focus on reducing Our latest smartphones feature power-save mode and consumers with our devices and the no-load energy consump- energy-efficient OLED displays services and use this engage- tion of our phone chargers, we’ve ment to encourage sustainable achieved a 95 percent cut in the Mobile donation application launched in the Ovi Store with Oxfam behaviors. We create applications no-load mode energy consump- in the UK to connect consumers to the causes they care about that connect people to the things tion of our new five-star mobile they care about, and build energy- chargers saving features into our phone chargers. Nokia Bicycle Charger kit uses pedal power to recharge phones in
Applications for sustainable an environmentally friendly way lifestyles We offer smart applications and digital services that show consumers how to reduce their environmental footprints. From our Climate Mission game and other applications in Ovi Store’s Go Green collection to our Ovi Do Good website, we help raise aware- ness about sustainable lifestyles, health and well-being and social responsibility. Nokia sustainability report 2010 2 Progress in Detail: Products and services 28
— 2.2.1 — Applications for sustainable lifestyles
This year we launched the Go OUR PROGRESS IN 2010 Green Collection of eco applica- Helping every consumer become WWF (Worldwide Fund for Nature) tions in the Ovi Store. This channel a Green Explorer contains numerous applications has provided content for Green Green Explorer is a free inter- Explorer’s information about local from around the world, created net service we launched for all with developers and partners and living in different destinations. All phones with mobile browser to of UNESCO’s World Heritage Sites powered by Nokia. Highlights are help our consumers find daily featured below. can also be located on the Ovi inspiration for sustainable living. maps through Green Explorer. Through Nokia Care, we provide The tool lets users discover new green points of interest, share Discovering the Wild Wonders support services to consumers of Europe their favorite green places, and online, via email and in our call The Wild Wonders of Europe keep a mobile notebook of tips. centers. These are backed up by mobile application helps users Users can join the community and a network of authorized service discover amazing places in Eu- become a Green Explorer in over centers which provide product in- rope, and features a slide show of 120,000 places around the world. formation, guides and demonstra- exceptional images taken by pro- tions, discussion boards, software fessional nature photographers. updates, and warranty repairs. They can also help consumers Working with Oxfam find where to recycle their old Together with Oxfam, in 2010 products. Nokia launched ’Oxfam Donate’ mobile donation application in the UK. This mobile application Our devices are equipped with connects people with the causes multiple functionalities. This helps that matter to them the most, consumers reduce their own empowering people to support environmental footprint and avoid those in need at the press of a buying, using and charging several button. It also enables users to separate devices when one device track donations in real time. can be used for many different purposes. Key features include an excellent digital camera, music player, navigation, web browser and other features—all in one product. Nokia’s Ovi Do Good website has information about applica- tions and services related to the environment, health and wellbeing, education, social responsibility and accessibility, which you can get from the Ovi Store. Our Do Good motto is: “Do Good for yourself, your community, and your planet”. Nokia sustainability report 2010 2 Progress in Detail: Products and services 29
— 2.2.2 — Helping consumers save energy
OUR PROGRESS IN 2010 Energy-saving chargers This year most of our new device models were shipped with our five-star chargers. In 2009, we introduced two new energy-efficient chargers: the Nokia High-Efficiency Charger AC-10 and the Compact Travel Charger AC-15. They consume just 0.03W in no-load mode, and over last decade, we have reduced the no-load consumption of our best-in-class chargers by over 95%. We made further advances in eco and cost-efficient charging with the introduction of the Nokia Bicycle Charger kit. Using pedal power it starts charging when you cycle at walking speed (6 km/h) or faster. It charges as efficiently as our normal Nokia outlet chargers. We have reached and exceeded our target of reducing no-load power used by our chargers by 50% from 2006 to 2010. The target was al- ready reached during second half of 2009 and during 2010 the no-load power consumption was further decreasing and finally exceeding the target with 18%.
At the end of 2008, Nokia, together with other manufactur- ers, created and began using a Mobile Device Charger Energy Rating. The rating is based on the charger’s no-load energy consumption (i.e. the We are introducing energy-saving amount of energy a charger will features throughout our product continue to consume if you forget portfolio, including energy efficient to unplug it from the outlet after chargers. With over a billion people the phone is fully charged). The using Nokia phones around the rating is displayed on a unique world, small steps like these make label which is featured on the a big difference. Nokia was the first packaging of our products. mobile manufacturer to put alerts into mobile devices to remind Over the last decade, we have people to unplug their chargers reduced the no-load consumption once they are fully charged. These of our chargers by over 80%, alerts are now incorporated across and in our best-in-class chargers our range of products. by over 95%. Nokia sustainability report 2010 2 Progress in Detail: Products and services 30
— 2.2.2 — Helping consumers save energy (CONT.)
No-load Power Consumption of Nokia’s Chargers
0.40
0.35
0.30
0.25
0.20
0.15
0.10
0.05
2004 2005 2006 2007 2008 2009 2010 KEY target 2010 Watts We have reached and exceeded our target of reducing no-load power used by our chargers by 50 percent from 2006 to 2010. The target was already reached during second half of 2009 and during 2010 the no-load power consumption was further decreasing and finally exceeding the target with 18% Nokia sustainability report 2010 2 Progress in Detail: Products and services 31
— 2.3 — Mobile technology for development: Empowering people and organizations
Nokia is uniquely placed to support 2010 SNAPSHOT people through our core business. We provide affordable services Over 14 million Ovi Mail accounts activated since its launch in 2010; to both emerging and developed for many people in emerging markets, this is their first email account markets. We address the fun- damental needs of connectivity, affordability and relevance. Making Nokia Data Gathering open-source, which allowed numerous organizations in different fields to take it into use Nokia reshaped its corporate social investment focus in late 2009 to focus on the use of mobile Our latest smartphones feature power-save mode and technology for development. energy-efficient OLED displays We address education, health, livelihoods and environmental 5-year partnership initiated with UNESCO, committing to the goal awareness through our social of Education for All investments. This strategic shift in social investment means we are now investing more in programs Nokia Money launched in India that utilize mobile technology. This represents a departure from more traditional corporate philanthropy, Nokia Education Delivery expanded to Chile and Colombia. which focuses on the number of dollars spent rather than the Ovi Life Tools expanded to Nigeria, the first African country where impact it creates. people can benefit from the service We believe that investing in mo- bile technology can bring social benefits that enable ongoing, meaningful impact on a large scale at a low cost. Our aim is not only to help people on a large scale but also to maximize the social impact of mobile technology. Our invest- ments prioritize concepts that deliver enduring value to society. This will not result in the complete cessation of our investment in youth projects, however, since those will still reach large audi- ences. We recognize there are important projects which can benefit from Nokia’s participation, irrespective of technology. Nokia sustainability report 2010 2 Progress in Detail: Products and services 32
— 2.3.1 — Education
Education is important for providing “Today, there are around 796 million adults – approximately younger generations and adults with 16 percent of the world’s population aged 15 and over – who lack the basic the required skillts and competences reading, writing and numeracy skills needed in everyday life. Two-thirds to manage their lives. Access of the non-literate adults are women. This will remain largely unchanged to, and quality of, education for girls until 2015 if present trends continue. In order to provide quality education and women is an area that can be for all and to address the gender disparities adequately, more vigorous improved through mobile and innovative measures have to be taken to address the situation, given communications. the enormity of the challenge. Mobile phones can offer individualized the powerful contribution of Information and Communication learning for every person, irrespective Technologies (ICTs) has been increasingly acknowledged in the recent of an individual’s sex or the years. Its importance is now well established as a viable means of manufacturer of the phone. To this motivating learners and of enhancing learning effectiveness in youth and goal, we invest in specific educational adult literacy programs. This is especially the case with mobile phones. concepts and efforts to improve the Initiatives from all over the globe are testimonies of the success and affordability of our products and OUR PROGRESS IN 2010 potential of the use of mobile phone technology. In particular, mobile services. Concepts such as Ovi phones hold great potential for reaching marginalized girls and women Life Tools show that education can In October 2010, Nokia initiated and providing them with access to learning and development, with an be delivered affordably on a a 5-year partnership with impact on fighting poverty, disease, accelerate economic growth, as well massive scale. UNESCO. The partnership will as improving governance and democracy. harness mobile communication the partnership between Nokia and UNESCO clearly draws on Nokia Education Delivery software to serve individuals and support the principle that a cell phone is not only a device, but a door to greater enables the structured delivery governments as they strive to education and information. The foreseen activities, expected to begin of quality education materials over achieve the six goals of the World in May 2011, cover three types of projects. In the first phase, research mobile networks. Combined Declaration of Education for All. will be conducted to identify possible applications of mobile technology with teacher training and The partnership has been to support Education For All. The results will be transmitted in the form community engagement, this has structured to meet the target of guidelines to education ministries and policy-makers in developing improved academic results and date for these objectives in 2015. countries. The second part of the agreement concerns teachers. It will increased retention among students, Nokia will contribute expertise promote the use of mobile technologies to support training and especially girls. relating to technology and policies capacity-building, as well as the management of educational institutions, in this area. particularly in gathering data on staff, pupils and school facilities. The third The six ‘Education for All’ goals part of the agreement covers the development of new mobile cover access to education, early applications that have educational potential. Mobile technologies offer childhood care and development, access to information and enrich learning environments and UNESCO quality of education, equality, wants to make sure they are used to promote the delivery of quality literacy and life skills and lifelong education based on the sharing of knowledge. The partnership with Nokia learning. During 2010, we is an excellent opportunity to make it happen.” deployed projects related to access, quality and equality, and will introduce new concepts to address the other goals in 2011.
Francesc Pedró Chief, Sector Policy Advice, UNESCO Nokia sustainability report 2010 2 Progress in Detail: Products and services 33
— 2.3.1 — Education (CONT.)
OUR PROGRESS IN 2010 “As the program director of the Khanya project, I value the partnership with Nokia. I believe that in a few years’ time, all learners will have sufficient mobile computing power in their pockets, so as to render COMMITING TO EDUCATION FOR ALL In October 2010, Nokia initiated a Nokia Education Delivery is further obsolete many of the technologies currently present in schools. Children 5-year partnership with UNESCO. expanding within Africa, to schools are already showing a strong inclination towards the use of mobile devices, The partnership will harness in Kenya and Nigeria in 2011. The and if the education system is clever, they will cash in on this phenomenon mobile communication to serve concept can also be adopted by to use mobile phones to incline learners towards learning. Nokia is individuals and support organizations looking for innovative rendering a huge service to education in making their expertise and other governments as they strive to ways to train, educate and inform resources available to education departments, in order to make mobile achieve the six goals of the World their personnelCommitting to learning a reality. I can only hope that education authorities will embrace Declaration of Education for All. education for all this initiative and give it their whole-hearted support. The partnership has been the Mobile Maths pilot project has laid a solid foundation on structured to meet the target which to build; it proved that mobile technology in the hands of learners Using mobiles to learn indeed leads to their increased involvement with learning material. This date for these objectives in 2015. in South Africa initiative may pose a challenge to educators who battle to stay abreast Nokia will contribute expertise In 2010, the South African proof- with new technologies. Who knows - mobile technology may be just what relating to technology and of-concept for individualized mobile we need to by-pass reluctant teachers: put mobile learning power in the policies in this area. learning reached maturity and hands of the kids!” The six ‘Education for All’ goals demonstrated its success. The cover access to education, early concept uses Mxit, a popular childhood care and development, social media channel, as a means quality of education, equality, to deliver mobile education in literacy and life skills and lifelong mathematics. By harnessing learning. During 2010, we the power of social networking students become engaged by Kobus van Wyk, deployed projects related to Western Cape Education Department, South Africa access, quality and equality, and the educational content. In 2010, TEACHER IN AFRICA will introduce new concepts to the project reached over 4,000 address the other goals in 2011. students in 30 schools across the country. This resulted in a 14% improvement in academic Expanding Nokia Education achievement and consequently, Delivery we are taking the concept to 150 During 2010, Nokia Education schools and about 20,000 learners Delivery expanded to Chile and in 2011. The project continues in Colombia. This built on previously close cooperation with content established projects in the partner Maskew Miller Longman Philippines and Tanzania. In each and operators MTN and CellC, who case, the concept has been zero-rate the service, so that it is deployed in partnership with the free for children. The MoMaths national ministries of education, pilot project was also started in the Pearson Foundation and Finland in September 2010. respected telecom operators such as Telefonica, Vodacom, Globe and Airtel. Nokia sustainability report 2010 2 Progress in Detail: Products and services 34
— 2.3.2— YOUTH DEVELOPMENT
OUR PROGRESS IN 2010
in 2010, we continued to support a diverse range of youth “Nokia has been an extraordinary friend and partner of the development projects across the world, all aimed at addressing needs International Youth Foundation for more than a decade. Working with us identified by local partners. An example is the Heart to Heart project on a wide range of youth development initiatives worldwide, Nokia has in China, which recognizes the stress that economic migration can have helped impact the lives of over a half million young people through its on families. It supports children affected by their parents’ need to secure support of our education, employability, and citizenship programs in 68 financial security. countries. Yet these numbers – as remarkable as they are – don’t begin Nokia’s youth life skills initiative with the International Youth to reflect the lasting imprint that this company has had – and continues Foundation celebrated its 10th anniversary in 2010. The initiative benefits to have – on our work at IYF. youth and communities in more than 10 countries, and in 2010 more than from the beginning, Nokia and IYF shared a vision of positive 78,000 young people directly benefited from these programs. This youth development that placed a priority on helping young people to be includes our commitment to the Inter-American Development Bank’s successful – in school, in the workplace, and in the community. We agreed Entra 21 employability program in Latin America. It has now entered on the importance of supporting locally-owned – and locally-driven its fifth year, and opened doors for thousands of disadvantaged initiatives. Together with our partner organizations on the ground, Nokia young people. and IYF “co-created” programs in the Philippines and Tanzania that brought interactive multi-media education programs to underserved schools; helped boost livelihood opportunities among young people in India, Indonesia, Sri Lanka and Thailand whose communities were devastated by the 2004 Tsunami; encouraged youth volunteerism in every corner of the globe; and prepared unemployed youth in Central and South America to enter the job market for the first time. Nokia was also the pioneering support behind YouthActionNet® – IYF’s signature youth leadership initiative that continues to expand its activities and impact worldwide. The success of these programs demonstrates two of Nokia’s great strengths as a partner – its commitment to innovation and sustainability. Nokia has helped make IYF a better and stronger organization by challenging us to think in ever more innovative and strategic ways about how to positively impact the lives of today’s youth. Nokia has been with us, as well, as we developed our long-term priorities and plans for the future -- with senior Nokia executives serving on the IYF Board for more than a decade, and providing extraordinary leadership.”
William S. Reese President and CEO, International Youth Foundation Nokia sustainability report 2010 2 Progress in Detail: Products and services 35
— 2.3.3 — — 2.3.4 — Livelihoods Health and well-being
Nokia supports livelihoods in many We believe mobile technology has OUR PROGRESS IN 2010 OUR PROGRESS IN 2010 ways from mobile banking and the a critical role to play in preventing development of job skills to the Making Nokia Data Gathering outbreaks of diseases and improving Using mobile social network- open source ing and peer support to remind creation of software to support local human health and well-being. We people to take their medicines entrepreneurs. Nokia also creates make our contribution by offering software that can be adapted and In July 2010, we launched Nokia applications and services, and sold to local customers by software Data Gathering under an open- working with partners to conduct The costs of failing to finish developers. In doing so, we are source license. This software research. a course of prescribed medicine subsidizing the investment required suite replaces traditional can be significant, in personal The speed and accuracy of gathering to help those small businesses to data-gathering methods, such as terms and for the society. In 2010, field data can play a critical role in grow, and creating a platform for local paper questionnaires, with mobile believing mobile technology could managing and preventing the spread technology innovation. phones. This has improved results make a difference here, Nokia while saving time and money. of diseases. commenced user testing of a The open-source software has Nokia Data Gathering improves the concept that uses mobile phones OUR PROGRESS IN 2010 been adopted by governmental, ability of organizations to monitor and social networks to increase non-governmental and corporate outbreaks by providing real-time adherence to courses of Entrepreneurship without clients, giving us some assurance data from health workers in the field. prescribed medicines. Funded borders of its continued success. The combination of GPS location by the Brazilian government, the project is being carried out in Belo To date, over 100 organizations information, images and real- time Towards the end of 2010, Nokia Horizonte and we expect to have conducted trials of Nokia data transfer enables decisions to be formalized an agreement with review the outcomes during 2011. Data Gathering using our test made in a timely manner. Junior Achievement, to conduct We anticipate that our future server, while others have taken it entrepreneurship training in eight social investments in health will straight into use. Recent public countries across Europe and Africa. be more educational in nature, reference cases have included This initiative links students across targeted at early childhood care the Department of Agriculture in continents to create opportunities and development. for the future. The ‘Enterprise the Philippines (to improve food Without Borders’ program gives security), UN FAO in Kenya confidence and contacts to (mapping water points to ensure students, providing ”hard skills” for access to clean drinking water business, so they can build their and irrigation), World Vision in own future in countries with Indonesia (child welfare sponsor- endemic youth unemployment. ship), Plan Kenya (birth registra- This initial investment will be used tion) and Syngenta Foundation in to determine how mobile Kenya (agricultural productivity). technology can enhance the development of these skills and the stimulation of international trade. Nokia sustainability report 2010 2 Progress in Detail: Products and services 36
— 2.3.5 — — 2.3.6 — ACcess to email — Ovi Mail Empowering people to make informed decisions — Ovi Life Tools
Ovi Mail offers a digital identity to Ovi Mail supports over Ovi Life Tools help to bridge the e ducation services: Learn English, people without access to a 25 languages, and can be digital divide in emerging markets, acquire general knowledge and computer or the internet. For many delivering reliable and comprehensive access exam preparation and people, Ovi Mail is their first email accessed on almost 200 information to mobile devices in one results, as well as information account. It’s specifically designed Nokia devices, in virtually package. The tools provide people on higher education and career for on-device account creation, so every country in the in rural and suburban communities guidance. people can create and manage with livelihood and life improvement world. Since the launch e ntertainment services: Football their accounts without a computer. services, including healthcare, of Ovi Mail in 2010, there results, music, news alerts, agriculture, education, horoscopes and jokes. are over 14 million active and entertainment services. accounts. Users of Ovi Life Tools primarily depend on the agriculture trade and live around the poverty threshold. This makes parting with one or two dollars each month for a mobile service a substantial investment. Since its commercial launch in mid- 2009, nearly nine million people have INDIAN BIKE DRIVER experienced the service. Nokia Life Tools is available in India, Indonesia, China and Nigeria, and will roll out to more markets in the future. The OUR PROGRESS IN 2010 Tools include: This year we extended Ovi Life healthcare services: Pregnancy Tools to Africa, launching the advice, mother and childcare, service in Nigeria. It will be offered family health and fitness, and through two of the country’s disease information. largest operators, Zain / Airtel a griculture services: Market and Glo Mobile. Nigeria has a prices (e.g. for cocoa and fish), population of 140 million, around information on weather, half of which are mobile phone availability of seeds, fertilizers, subscribers. It is one of Africa’s and pesticides, and news and fastest-growing economies. advice. The information is tailored to the farmer’s location and selection of crops. Nokia sustainability report 2010 2 Progress in Detail: Products and services 37
— 2.3.7 — — 2.3.8 — — 2.3.9 — Providing basic financial services Disaster response Bridging the digital through mobile phones — Nokia Money and preparedness divide
We see mobile money as the way In the initial phase, consumers can As a global business, Nokia has a The digitalization and the proliferation to make financial inclusion a reality. transfer money to another person disaster response strategy in place of the Internet and ICT technologies In developing countries, most people just by using the person’s mobile and it evaluates every crisis situation have brought tremendous benefits rely on cash as their only means for phone number. They can also pay separately. We work together with for an ever increasing number of financial transactions. Nokia Money, merchants for goods and services, our non-profit partners to respond people all over the world. At the same our global mobile financial services pay their utility bills, insurance, and appropriately to disasters around time, however, new differences and initiative, is targeted at unbanked phone bills, as wells as recharge their the world. Our response depends divides between people are emerging people or those underserved prepaid SIM cards and pay donations on the severity of the situation, our in term of access to technologies by financial services in emerging to charities. presence and our ability to make a and information and the ability markets. It enables transactions that meaningful contribution. to utilize it to the fullest extent. Nokia Money is designed to work in might not have been possible before Understanding and resolving partnerships with multiple network We are increasingly focusing on due to cost, location or time the issues preventing equal access to operators and banks, involving disaster preparedness, including the constraints. the ICT is by far the most important distributors and merchants development of mobile-based tools in building global information society. in a dynamic open ecosystem that and applications. Mobile technology OUR PROGRESS IN 2010 seamlessly provides new services. The can greatly improve the ability of Three kinds of hurdles contribute Nokia Money platform is compliant organizations and the public to to the digital divide: cost, physical Launching nokia money in india with key international standards for respond more quickly and effectively. disability and lack of skills and During 2010, we launched a pilot banking, risk, fraud, privacy, We also intend to explore ways of education. These issues are version of Nokia Money in India. distribution and infrastructure deploying our knowledge and skills interlinked and often contribute to More than 60% of India’s operating processes. for the benefit of disaster relief one another. Overcoming and finding population lack a bank account, efforts. innovative solutions requires broad and more than 85% of all collaboration between corporations, transactions there are based on Financial support governments and civil society. Nokia cash. Our partners in India include to crisis situations participates in solving these Yes Bank and Union Bank of India, In 2010, we gave financial or in-kind challenges and creating shared value in addition to hundreds of support in several crisis-afflicted and opportunities in societies around merchants and retailers. This helps areas, including Haiti, Pakistan, the world. to rapidly scale up the reach Thailand, Vietnam, Indonesia and of the service. The pilot has Uganda. subsequently been converted into a commercial service in the city regions of Pune, Chandigarh and Nashik. Nokia sustainability report 2010 2 Progress in Detail: Products and services 38
— 2.4 — Take-back and recycling
Recycling programs 2010 SNAPSHOT Three billion people don’t yet have Nokia first offered take-back for Our aim is to help create a mobile phones. This is a critical mobile devices in the 1990s. Today, recycling culture in every country Take-back points available opportunity for Nokia, but an we offer over 5,000 collection we operate in. We want to achieve in close to 100 countries increase of the amount of products points for recycling used mobile this not just by raising awareness sold is also a key concern as “e-waste” devices and accessories in close to with our own customers, but by from used devices continues to 100 countries. equipping all consumers with the 415 tonnes of e-waste collected increase. Mobile phones contain awareness and ability to recycle around the world through Nokia potentially hazardous materials, their phones. We know from managed collection, including which can leak out into the experience that developing a solid products returned by consumers environment in improper recycling foundation which supports a wider and from our service network. practices such as landfill or open air 5000 set of recycling behaviors will This represents an increase collection 100 burning. Combined with a finite countries result in more mobile phone of 10% compared to the points supply of raw materials available for recycling. It can also contribute to previous year. Mobile phones producing new phones, the end- more sustainable lifestyles. are also collected through life of mobile devices is a major issue different cooperative channels We measure our success on that impacts across our industry. in EU, Canada and Australia We take part in collective recycling take-back and recycling in three Today all Nokia mobile phones schemes with other equipment ways: manufacturers in Europe, Canada Voluntary local recycling drives are made using materials Number of countries covered and Australia. We also engage in to raise awareness in 30 countries Number of people reached with that can be recovered local recycling awareness with our recycling message in and reused as materials or retailers, operators, other dedicatedTAKE campaigns BACK AND RECYCLETens of millions of consumers manufacturers and authorities to generate energy in the Weight of mobile devices (and reached through media around the world. Our take-back recycling process. accessories) recycled impressions from our campaigns and recycling programs continue around the world Our challenge is now to make to expand into new markets, recycling of phones easy and assuring that mobile devices end desirable, not just for our up in environmentally safe customers, but for all consumers. recycling processes. By doing this, we are also helping Creating a recycling culture to develop recycling culture. Our work on improving collection infrastructure to make recycling easier must be combined with consumer engagement.. Our global study in 2008 showed that less than 3% of consumers were recycling their mobile devices, 48% did not know a phone could be recycled and 66% did not know how to recycle them. In some markets, the idea of recycling in general is completely new to consumers. Nokia sustainability report 2010 2 Progress in Detail: Products and services 39
— 2.4 . 1 — Recycling programs
Keeping products out of landfill Our recycling programs target the Our work is having a positive effect. In the big picture, we’re aware that An ongoing challenge is ‘leakage’, removal of unusable products from We’re seeing slow but steady financial incentives might defeat meaning waste equipment that isn’t domestic waste, to avoid them development of a recycling culture, our larger objectives of increasing monitored by existing national ending up in landfill. We build our from Uganda to India. A combination environmental awareness and collection channels. Leakage occurs programs by identifying safe and of increased awareness, better creating a recycling culture. In many because much of household reliable recyclers, developing the infrastructure, and convenience for countries, we find that people electronics waste still has a residual infrastructure for reverse logistics, the consumer is leading to gradual are willing to recycle as long as it’s value at disposal and is sold for offering a variety of take-back increases in collection volumes. convenient and they’re equipped second-hand use (often abroad) options, and partnering with others with the right information at the or for recycling of its components. to increase our capacity. Raising awareness with consumers right time. We’re continuously studying the Consumer awareness and the scale Of course, Nokia branded collection most effective ways for consumers Our successful campaigns in India, of public campaigns about recycling isn’t the only channel for people to to recycle their phones. Our focus is the Middle East and across Africa vary widely across the EU. In many recycle their devices. We have seen on learning from how we motivate are proving great examples. By rolling countries, the idea of a recycling people returning products through people to act, so that we can put out phone recycling programs in culture is emergent or entirely new EU collective scenes, through our best practices to global use. In these countries, we’ve opened to consumers. This means that the refurbishment and second-hand many parts of the world, recycling doors to other forms of recycling current EU target of collecting four sales, through teleoperators and in general is either a new and for communities that never had any kilos of electronic waste per through other common collection unfamiliar concept or the recycling programs before. In these inhabitant per year is resulting in very schemes. We work to make sure infrastructure is not readily available cases, Nokia has played a key role by different success rates being achieved consumers are aware of the channels for consumers. We use different going beyond managing the impact between countries. open to them for take-back and types of incentives to introduce of our own products. Our activities This year, Nokia continued financing recycling. recycling and make it desirable, have helped to create local recycling collection and treatment of electronic culture. MOBILE DEVICES AND ACCESSORIESincluding partnering with NGOs, waste across the EU. Our work builds making donations and giveaways, 1.5 GOLD RINGS Working with regulators on the robust requirements set by and offering access to events. Since 2005, under the Waste Electrical the National Implementation of and Electronic Equipment (WEEE) the European Union WEEE directive. directive, EU member states are As a result, steady progress is being required to set up separate collection made to establish national collection systems for all household electrical networks in every country. These and electronic equipment waste. networks collect and treat all This is an important step towards electronic waste from households, helping consumers across the EU and are a big step forward to making to recycle and return used waste recycling culture the rule, not the equipment in an easy and exception. Similarly, in EU member responsible way. The various schemes states it is mandatory for producers are operated and financed by the to participate in waste management equipment producers, while of packaging materials and batteries. municipal collections, specified waste management sites and shops selling equipment are the main collection channels. Nokia sustainability report 2010 2 Progress in Detail: Products and services 40
— 2.4 . 1 — Recycling programs (CONT.)
OUR PROGRESS IN 2010
Expanding current programs
India China Norway Our recycling programs in India We continued to run our Green Box We started a partnership with local continued to grow this year. program which started in 2005, producer association El-retur to Since 2008, we’ve been building our expanding it to our retail stores in increase the collection amounts program by setting up the big cities. for obsolete products. We launched a mail-back system and increased infrastructure for collection and Brazil the number of collection points reverse logistics, training retail We expanded our recycling program in electronics retail chains. This pilot personnel, collaborating with in partnership with Pão de Açúcar was well-received and we have During 2010, we ran operator a responsible recycling vendor, Group, the largest retailer in the decided to keep it running. or retail cooperation campaigns and engaging consumers. country. By installing take-back bins in seven countries, university events 498,000 pieces (16 tonnes) of in Pão de Açúcar grocery stores, Australia in 11 countries, direct consumer phones and accessories collected. we’ve significantly increased the We participated in nationwide campaigns and events in 19 over 36,000 trees planted in number of recycling points in Brazil mobile phone collection systems. countries, and campaigns in our cooperation with three NGOs. and brought recycling a step closer We also worked together with care network in eight countries. t ake-back campaigning reached to the daily lives of our customers. teleoperators and included a We offered mail recycling programs 145 million consumers and Previously, our take-back programs recycling bag in our sales packages. in four countries, and participated engaged 250,000 mobile phone focused on Nokia service centers. in national recycling programs in 29 users. Middle East countries. Most importantly we were Southeast Asia In the United Arab Emirates and We continued our corporate We started five new partnerships Lebanon we partner with local able to offer permanent take-back engagement program and digital service for obsolete devices in close with different stakeholders during NGOs. Our work with these partners community hub, “Planet ke the year. We organized 26 separate focuses on raising awareness and to 100 countries in more than 5,000 Rakhwaale” (Saviors of the Planet). collection points. take-back events or road shows helping people take action in We also expanded the program to in the region, and participated schools and in offices. To support We continued to work with our smaller cities and towns and started in conservation projects tied into us, these partners run road shows partner WWF to raise awareness a school engagement program to take-back campaigns in Vietnam, and other live events to get across India, Brazil, UK and Finland. distribute educational comic books Indonesia and the Philippines. consumers excited about recycling Together we promoted the benefits on e-waste management. and also offer collection points for In Malaysia, we launched a new of electronics recycling, and WWF obsolete devices. offered information on Nokia partnership with local newspaper recycling programs on their website. ‘The Star’ and municipal councils in Penang, with support from the We continued our focus on engaging state government. This partnership consumers around the world, also included monthly road shows. carrying out voluntary local recycling drives to raise awareness in 30 countries. Our messages encourage consumers first to pass unwanted phones on to their family and friends for further use before exploring recycling options. Nokia sustainability report 2010 2 Progress in Detail: Products and services 41
— 2.4 . 1 — Recycling programs (CONT.)
OUR PROGRESS IN 2010
North America In Canada, we continued to participate in nationwide mobile phone collection systems. This year we were a proud sponsor of the IMAX Giant Screen film Wild Ocean, which tells the incredible story of diverse life in the ocean. As a result of the successful pilot in North America, 30 million people saw the introduction we created for the film, which contains powerful calls to action for a recycling culture. Our support for Wild 2010 Highlight Ocean is one of the many ways we reach beyond the over one billion Introducing take-back and recycling in Uganda people using Nokia products to empower all mobile phone users who want to take action and recycle. The challenge Introducing new programs In Uganda, our stakeholders were skeptical before we launched our first During 2010, we launched many new take-back programs around the take-back and recycling program there. Awareness of sustainability world. In Africa and the Middle East, we introduced programs in the and the role consumers can play is low across the country, and the Kingdom of Saudi Arabia, Lebanon and Uganda. prevailing belief was that Uganda wasn’t ready for our initiative. In Europe we expanded our service to Belarus, Bosnia, Malta and Ukraine. The outcome Other new countries include Sri Lanka, Uruguay, Pakistan and Panama. The results speak for themselves. In just two days, with only one collection point, we received 459 old phones, 254 chargers and 239 batteries. We discovered that many people have heard about illegal e-waste dumping practices in Africa, and are more than willing to take action on the issue if they know what to do and where to go. Nokia sustainability report 2010
— 3.0 — PrOGRESS IN DETAIL : PEOPLE Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 43
— 3.1 — Employees
Nokia Way and values Our success depends on our The Nokia Way defines our core employees. We consider them a vital values. These four values – Engaging stakeholder group and value their You, Achieving Together, Passion for feedback on how we run our Innovation and Very Human – are business. It is equally important that developed by our employees around we keep them informed and consult the world. They are a foundation for them about changes that affect our evolving business culture and them. At the same time, the IT and form the basis of how we operate. mobile technology sector is dynamic Diversity and inclusion Training and development Human rights and fast-paced, competition is tough Increasing diversity has been We reward employees competitively Nokia believes that our core and we are experiencing critical an important focus area in Nokia for through a global reward framework business – connecting people with challenges to our business and the many years. We believe that diversity designed to recognize individuals’ and mobile technology – contributes to way we work. and inclusion in the workplace brings teams’ contribution and achievement. the promotion of human rights by 2010 was a year of change at Nokia competitive advantage and added We promote open dialogue about enabling and enhancing communi- with organizational changes, new value to our business. Through our performance, and opportunities for cation and facilitating economic strategy development, new Code of Conduct, we are committed development help to motivate development. At the same time, we management and restructuring. to creating an inclusive workplace our employees. have specific human rights respon- This has challenged our employees that welcomes men and women sibilities toward our employees, To collect employee feedback and our company to reinvent itself of different cultural or ethnic back- customers, the communities where on a variety of issues, we conduct to compete in a new business grounds, skills and abilities, lifestyles, we work, and within our supply chain. Listening to You, our annual ecosystem. Fundamental in enabling generations and perspectives. employment survey. We encourage Labor conditions this change to happen has been managers to coach and initiate It is extremely important for us that our values, our open dialogue with personal development conversations labor conditions at all our production our employees, and the socially regularly. sites meet recognized international responsible manner in which standards. Each of our sites must we carry out needed restructuring. Performance and rewarding comply with our global employment We reward our employees As Nokia is going through a funda- guidelines. We assess their perfor- competitively, and encourage open mental transformation, we have to mance regularly as well as those of dialogue about performance and make some difficult decisions, which our suppliers. Going beyond opportunities for development to will include reductions in our work- compliance we also have developed help motivate our employees. force. We do not underestimate the Nokia Labor Conditions Standard the impact on or our responsibility Health, safety and wellbeing which helps improve performance. to Nokia employees and communi- Healthy and happy employees are ties. As a result, we are working on critical to the success of our business. long-term re-employment programs Our Occupational Health and Safety and alternative career opportunities (OHS) Policy sets out our promise for as many Nokia employees as to provide safe and healthy working possible during this company-wide conditions for all our employees, and transition. to promote wellbeing at work. We work with our contractors, suppliers and customers to continuously monitor health and safety issues and to meet our commitments. Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 44
— 3.1 — Employees
2010 SNAPSHOT
Average number of employees close to 64,000.
At December 31, 2010, Nokia had 29,234 employees working directly in production, including manufacturing, packaging and shipping.
During 2010, the rate of voluntary attrition – that is the percentage of the workforce leaving the company voluntarily – was 12.0% at Nokia.
At the end of 2010, 14.5% of senior management positions within Nokia were held by women, while 53.2% of senior management positions were held by people of non-Finnish nationality.
During 2010, Nokia spent nearly 28 million Euros on training for employees working in areas other than production. This equates to approximately 850 Euros per employee.
Highest ever response to our annual employee survey, Listening to You: 89% of our employees in more than 50 countries participated.
First-ever Nokia Human Rights Summit brought together 40 representatives of various stakeholder groups from NGOs to investors.
One fatal accident in Chennai, India. Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 45
— 3.1.1 — Nokia way and values
The Nokia Way defines our core — eNgaging you OUR PROGRESS IN 2010 values. Developed by our employees We engage our customers, our suppliers and our own employees in In 2010, 89% of our employees in around the world, they reflect and what the company stands for. more than 50 countries participated support our business and changing environment. The values act as a in our LTY survey. This was our — achieving together highest ever survey response (88% foundation for our evolving business We reach out to others, encouraging in 2009). The results showed that culture and form the basis of them to work together with us and employees are generally enthusi- how we operate. share risks, responsibilities and astic and engaged in the company. In 2007, we reviewed and refined successes. Of the respondents, 68% said they these values to engage employees — passion for innovation are proud to work for Nokia. Some and reflect changes to our business This reflects our curiosity about the 79% of employees see a clear link and the way we work. More than 500 world around us and our desire between their work and Nokia’s employees from around the world to improve people’s lives through objectives, and 66% enjoy their took part in 16 regional events to innovation in technology. day-to-day tasks. explain what they think is important — very human About 63% of employees surveyed and to help us come up with themes for the new values. Involving This is the way we do business and said that Nokia’s corporate res- work with each other. ponsibility activities have increased employees at every stage of the Listening to You their overall employment process helped us embed a strong The Nokia Way of Working encourages Employees are a vital stakeholder satisfaction. values culture throughout the open discussion and debate group. We value our employees’ business. within the business. Employees can feedback on how we run our ask questions and comment on our business. It is equally important that business at any time through the everyone is informed and consulted company intranet, as well as about changes that affect them. SocialCast—the company internal One of the ways we encourage social network—and receive a prompt discussion is through Listening to and openly published response. You (LTY), our annual employee survey, which asks for feedback from our employees on a range of important issues. We use this feedback when designing our people-related policies and practices. Employees can also ask questions about the business, anonymously if they wish, through the company intranet and receive a prompt and openly published response. The LTY report includes a selection of employee responses to questions about specific corporate responsibility issues, such as inclusion and development opportunities. Through a variety of social media, groups of employees can also openly debate opinions and share ideas. Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 46
— 3.1.2 — Diversity and inclusion
Cross-solutions teams Nokia is committed to promoting Employees from diverse cultures We believe the future is about every- Through the ATP initiatives, we have diversity and inclusion in the and backgrounds bring insights body working more collaboratively. successfully identified and provided workplace and providing rewarding into our customer base around the To best meet the needs of our training opportunities for more than career development opportunities world. Nokia is committed to equal consumers, we need to move away 100 senior leaders across our Asian for all employees. opportunities and does not condone from working in technology silos operations. We have also maintained discrimination of any kind. This to working in teams spanning all a skills databank used for job rotation, We strive to create an inclusive commitment is embedded in our our areas of work, from services to decision-making, mentoring, short- workplace that welcomes men and Code of Conduct. Having a plan markets and product offerings. term assignments, and cross-cultural women of different cultural or ethnic for actively managing equality and competence development. backgrounds, skills and abilities, life- Team work helps us solve problems diversity has shown us that employ- styles, generations and perspectives. more efficiently and think creatively. ees stay longer in the company, have We provide opportunities for career Leading a diverse team can also be OUR PROGRESS IN 2010 better company loyalty and maintain development, and are strongly a challenge. As wellbeing-at-work higher levels of satisfaction toward We are tracking our progress committed to the highest standards studies have shown, taking care of their work in general. To further on diversity and inclusion by using of ethical conduct. This has helped every team member by making them educate our workforce on the qualitative and quantitative targets. us to build the diverse and robust feel part of the team is extremely benefits of being a more diverse In 2010, 72% of employees, parti- community that is Nokia today. important and can increase both the company, we have developed and cipating in our annual employee wellbeing of an individual as well as At the end of 2010, Nokia’s headcount begun deployment of the Nokia survey felt that all our employees company performance. We promote was 60,815. Out of this, 92% Cultural Connections Game. are treated as individuals regardless flexible working such as remote have a regular contract and 8% are of age, race, gender or physical We are integrating diversity targets working options, to help employees temporary workers. Analyzing the capabilities. This is a 2.9% increase into our global people management balance the demands of work and headcount by gender shows us 59.2% from the previous year. Our policy processes. For example, we ask our home life. of the workforce are men, and 40.8% is to employ local people wherever leaders how they create an inclusive are women. (NAVTEQ is not included Because change often happens we work. People representing environment as part of their general in the figures shown in this text). informally and from the ground up, around 115 different nationalities performance self-assessment at Nokia we need to have teams that work at Nokia. questionnaire. Their responses are start to change things for them- used to identify areas for improve- selves. Diversity, inclusion and gender ment and share best practices across balance will play a very important the business. part in this transformation. At the end of 2010, 14.5% of senior management positions within Nokia Ensuring Asian experience in were held by women, while 53.2% of future management senior management positions were Our Asian Talent Pipeline (ATP) is a held by people of non-Finnish long-term global umbrella for multiple nationality. Both figures are slightly initiatives that the organization has up compared to 2009. been steadily investing in and working on over the past two years. Its aim is to build a significant proportion of leaders in global management teams that have Asian experience and that can lead and deliver on the strategic business vision that we have for these markets in the future. Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 47
— 3.1.2 — Diversity and inclusion (CONT.)
42.1%
5.6%
0.8%
45.2%
6.3% Employee breakdown per region
North America South America Europe Headcount percentage Middle East By gender Australasia Female 40.8% Male 59.2% Total population by age group
00 – 20 3% 20 – 29 40% 30 – 39 34% 40 – 49 18% 50 + 5% Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 48
— 3.1.3 — Training and development
Enhancing leadership Sustainability training Encouraging volunteering Training and development Strong leadership is vital for the Our employees can take part in a Volunteering is an important part of both personally and professionally continued success of our company. wide range of internal events and achieving our sustainability goals. are important at Nokia. We offer an Earlier in 2007 we launched a training that help raise awareness Our mission is to make meaningful integrated package of classroom new leadership model – True Nokia and develop understanding of contributions to communities in the training, on-the-job learning, Leader – alongside our new strategy sustainability issues, both inside countries where we operate. However, individual coaching and mentoring. and values. The True Nokia Leader and outside the company. we do not have a global one-size- must bring our values to life, fits-all volunteering policy. Instead, We provide a variety of mandatory We hold global sustainability forums consistently ensuring that they form our program – Nokia Helping Hands – and voluntary training opportunities aimed at the whole personnel relationships based on trust, and is an umbrella for locally relevant for our employees to help them twice a year. These bring together deliver extraordinary achievement, volunteering activities. develop a broad range of skills for the employees and senior management growth and development for workplace, as well as the competencies to engage in open dialogue around Thousands of our employees individuals, teams and our business. specific to their roles. We offer our sustainability strategy and contribute their time and effort to The model will guide our leadership thousands of internal training options, activities. The global forums are worthy causes in their communities. development activities and the as well as many external training supported by area forums, which Through volunteering we are able to performance evaluations of opportunities. To match local needs, focus on sustainability issues from learn new skills and gain new managers and leaders. training may be tailored and may a regional perspective. perspectives. Volunteering also helps also be available in local languages. Our 2009 ‘Listening to You’ survey to create a balance between our We regularly run series of virtual showed that there was a growing personal convictions and We encourage e-learning opportu- information sessions covering a gap between our most and least professional lives. nities where possible, as these are wide range of topics related to our engaging leaders. To address this, environmentally preferable and sustainability work. Presented by It is important to encourage we have launched a program called cost-efficient. internal and external experts, these and support employees who want Leaders Coaching Leaders, in which sessions are held as online telecon- to contribute. In recognition of this, recognized top managers take ferences, which makes it possible employees can take two working a coaching role to inspire other to join from anywhere in the word. days per year. managers to improve. Good leadership and the engagement Road shows are also held during the of employees are especially crucial year at our offices and production in this time of transformation. sites throughout all regions. These The results have been promising. road shows engage employees by In 2010, our annual Listening to focusing on a variety of sustainability You survey showed a 2.2% increase issues at a Nokia-level and a site- in satisfaction for the category of specific level, and by providing tips questions called “my manager and I”. about how to make sustainable choices in everyday life. Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 49
— 3.1.3 — Training and development (CONT.)
OUR PROGRESS IN 2010 OUR PROGRESS IN 2010
We held two Sustainability Forums, one in June and one in December, In 2010, we continued to and the combined participation amounted to 1,430 employees, either offer a platform for We:champions, in person or through online meeting. an internal volunteer program for people who are interested in This year, close to 2,400 employees participated in 75 virtual training environmental matters and want sessions held on a variety of sustainability topics. A session introducing to play an active role in driving long-term sustainability and other macro trends brought together over internal environmental improve- 550 participants via teleconference. ments even further. The platform In 2010, First Touch events at Nokia sites, aimed at educating employees was renewed in 2010 and the group about new products and services, began to include sustainability content, is now part of a Nokia-wide internal such as demos on social and environmental applications and software. discussion forum.
Raising environmental awareness In 2010, we renewed our global cooperation with WWF. Cooperation includes raising environmental awareness among our employees. WWF has provided environmental training material for our employee training modules, and our employees took part in WWF’s One Planet Leaders training. WWF representatives attended and presented at various Nokia events, such as virtual info sessions and sustainability forums. WWF has also worked with us on environmental impact assessments in some of our sites and on content for the mobile sustainability applications we offer through Ovi Store. Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 50
— 3.1.4 — Performance and rewarding
We encourage managers to We reward employees competitively Our various incentive programs coach employees continually and through a global reward framework include cash incentive/bonus plans to have at least one formal personal designed to recognize individual (100% of our non-production development discussion every year. contribution and achievement. Levels employees participate in short-term We understand that praise is of compensation are determined by incentive schemes), R&D incentives, an important motivator and want to local labor markets and take into sales incentives and short-term create a culture where team members account both individual and company bonus plans. recognize achievement and help each performance. We communicate with employees other perform well. A wide number of employees are about the effect of business results nominated for our equity programs, on their incentives after each which are based on rewarding per- quarterly announcement through formance and retaining top employ- articles and video messages on our OUR PROGRESS IN 2010 ees. Our broad-based equity com- intranet news channel, the News In our annual Listening to pensation programs include stock Hub. We also communicate through You survey in 2009, only 28% of options and performance shares. quarterly letters, blogs, webcasts employees felt that their pay was Both are linked to the company’s and face-to-face meetings. competitive. In response, we performance over a number of years. Information is also available on the launched several new recognition Know Your Business section of our intranet. programs, which brought the figure up to 35% in 2010. One of Gender demographics vary greatly them is called Kudos, which can be both between the many countries given by a manager to thank and in which we operate and between recognize an employee for employee categories. For our indirect demonstrating the Nokia values in (non-production) staff we use a the way they do their job, or for global framework to set salary bands, delivering something special and which are applied to people regard- being an exceptional team member. less of gender, age, and so forth. We As our actions are having an impact, also regularly benchmark with other we are planning additional actions companies in the industry to ensure to further improve the score in we are paying competitively. For our this area. production staff, we have agree- 72% of those surveyed felt ments which specify the salary for that their manager helped them each role and experience level. These to know what is expected of them, are applied consistently irrespective 64% said that they received regular of gender. feedback from their manager to improve their performance, and 64% indicated they understand how their performance is evaluated.
Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 51
— 3.1.5 — Health, safety and well-being
Responding to a fatal accident Raising awareness on health Learning more about our The health, safety and wellbeing of On the October 31, 2010, a female and safety employees’ wellbeing our employees are vital to our operator working at the Nokia We run a range of campaigns and In 2009, we developed, and piloted business. Our Occupational Health Chennai factory had a fatal accident training programs to raise aware- on a more limited scale, an internal and Safety (OHS) Policy sets out our during a work shift. She was rescued ness about health and safety issues. Wellbeing Survey in cooperation with commitment to provide safe and and alive on the scene but passed During 2009, a comprehensive researchers from Helsinki University healthy working conditions for all our away at the hospital later that night program was developed and of Technology (now known as Aalto employees and promote wellbeing at due to severe injuries. As a mark deployed at all our sites in response University of Science and Technol- work. We work with our contractors, of respect, we closed our facility in to the H1N1, the so-called swine flu ogy) and Stanford Universities. suppliers and customers to Chennai on November 1 for a day and virus. This included education continuously monitor health and members of our senior management about the virus, advice on methods safety issues and meet our met with her family. Internal inves- to control the spread and additional hygiene supplies in cafeterias and commitments. tigations managed and conducted OUR PROGRESS IN 2010 by a third party started immediately, bathrooms. Where possible, the As a global company, we have accompanied by official police and vaccine was offered to employees In 2010, our internal Wellbeing selected the Occupational Safety & factory inspectorate investigations. and contingency plans were Survey was launched on a global Health Administration (OSHA) guide- developed in case large numbers scale. It includes elements such as lines for accident and illness reporting. The internal investigation led to both of employees became sick. We health and habits, job satisfaction, OSHA has issued specific guidelines immediate and long-term actions. continued to follow the situation organizational resources, personal and reporting instructions We have already implemented more in 2010. resources, life balance and recovery (documented in part 1904: Record- rigorous monitoring of operations and stress management. ing and Reporting Occupational procedures and clearer warning signs The survey can be used to get an Injuries and Illness) that we use for on the machines. In the longer term, understanding of the wellbeing all global reporting. If we need to the entire OHS management system level of teams and individuals and report locally, we refer to the will be enhanced to target better it provides information on the areas appropriate local standards. Local communication and behaviors. where actions to promote well- reporting is not within the scope for being are needed the most. Form 20-F, corporate responsibility reporting or assurance procedures. During 2010, the injury and illness Health and safety is managed by the rate among all our employees at global OHS unit, part of our human our nine major production facilities resources department. The unit is was 0.32%. This represents responsible for developing our health continuation of a four-year down- and safety strategy and the annual ward trend (from 0.82% in 2006). action plans. The global OHS team There is no global industry average coordinates and facilitates health to compare against, but as an and safety arrangements in individual example of the range, our injury countries, each of which have their and illness rate in 2009 was lower own health and safety services. The than the U.S. Bureau of Labor team also develops standard Statistic’s injury and illness rate, operating procedures for hazard which was 1.8% for computer and identification, risk assessment and electronic product manufacturing incident reporting across our in 2008. global operations. Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 52
— 3.1.6 — Human rights
We believe that our core business – OUR PROGRESS IN 2010 connecting people with mobile tech- nology – contributes to the promo- Nokia human rights summit tion of human rights by enabling In the spirit of openness and transparency, Nokia has traditionally hosted and enhancing communication and events that provide a forum for various issues of interest to stakeholders. facilitating economic development. In September 2010 Nokia organized a Human Rights Summit concerning Improved communications provide the social impact of multinational companies. The focus was on labor better opportunities for freedom of conditions in special economic zones (SEZ) and the payment of a fair expression, and therefore promote and adequate living wage to workers. civil and political rights as well as The event brought together 40 representatives of various stakeholder economic and social rights. At the groups from NGOs to investors and other businesses operating in similar same time, we have specific human environments to Nokia. The outcome was an agreement to launch a rights responsibilities toward our multi-stakeholder initiative, which will be piloted in one SEZ in Beijing, employees, customers, the China. Based on this pilot running in 2011, the participating stakeholders communities where we work, and will jointly develop principles and practices that can be applied to different within our supply chain. production sites and implemented also in other geographical regions. Nokia is constantly conducting due A key conclusion reached at the Nokia Human Rights Summit by diligence to fulfill its responsibility all participants was the need to act collectively, as it is difficult for any to respect human rights and assess individual actor to have a lasting impact on their own. Our summit was any human rights risks that may a promising first step in the process of anchoring human rights into the be associated with its activities, operations and relationships. One broader sustainability agenda and multi-stakeholder. The policies and processes that we part of the due diligence process in have developed are based on 2010 was a benchmarking study of following core beliefs: the human rights environment in 18 different countries. The resulting That The Universal Declaration Nokia Human Rights Approach of Human Rights form the basic document draws on the analysis principles and values, which are of the challenges identified embedded in our Code of in the benchmarking study and our Conduct and in our thinking as assessment of international best a company.
practices. Human rights challenges That mobile technology promotes and opportunities are different at human rights through enabling different stages of the Nokia value free expression, access to chain. In R&D, these may include information, exchange of ideas, aspects of accessibility and privacy. and economic development. In device manufacturing, including our supply chain, the main human That all employees and customers rights issues are labor rights, everywhere in the world have the and health and safety. In sales right to be treated with dignity and marketing, issues such as anti- and respect. We ensure this in corruption are most likely to be the our own operations and expect human rights issues to be addressed. the same from our suppliers. Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 53
— 3.1.6 — Human rights (CONT.)
“As an investor in Nokia, F&C has been working with the sustainability team throughout 2010 to develop an approach to managing human rights that appropriately reflects Nokia’s business. We are pleased to see the company taking a thoughtful approach to scoping its sphere of influence and determining how it can best protect the human rights of its stakeholders including employees, customers, suppliers and the “It is encouraging that Nokia discussed in 2010 the public. However, we urge the company to go further. Nokia’s products labor conditions in Special Economic Zones and living wages, as well as, lie at the heart of enabling its customers to live freely, to express at their Human Rights Summit, committed to launching a multi-stake- themselves, and to mobilize for change where this is necessary. When holder pilot that is now on its way. We would like to encourage Nokia not telecommunication networks are disrupted, this freedom is severely to stop discussing living wages, but actually work on implementing living constrained. Therefore, Nokia must consider what steps it will take when wages in this pilot. Nokia could take big leaps forward in the coming operating in markets where basic human rights like free speech and years on implementing code compliance down their supply chain, freedom of assembly are not always protected. We encourage the ontransparency – of its supply chain, as well as on monitoring and company to review its human rights strategy and develop a process for remediation efforts – and on freedom of association and collective evaluating human rights risks before selling telecom equipment into bargaining. SOMO, as a research organization, will follow developments markets with a history of human rights abuse. Nokia should also consider critically and report where Nokia makes improvements as well as where establishing business continuity plans or emergency measures we find Nokia lagging behind.” for protecting human rights during times of severe political turmoil.”
Alexis B. Krajeski Director, Governance and Sustainable Investment F&C Management Limited
Esther de Haan Senior Researcher SOMO (Center for Research on Multinational Corporations) This comment from F&C Management refers also to Nokia Siemens Networks business. Nokia Siemens Networks covers this topic in their Sustainability Report. Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 54
— 3.1.7 — Labor conditions
Meeting global standards and our own guidelines OUR PROGRESS IN 2010 It is extremely important to We began tracking people incidents Nokia that labor conditions at all our in our factories in the second half of Labor Condition Assessment Results 2010 in nine major production sites meet recognized 2010. Incidents such as legal strikes, Nokia-owned factories international standards. Each of our other labor unrest, work-related In 2010, working conditions in Nokia factories were assessed by Intertek. sites must comply with our global fatalities or occupational injuries, Local laws and Nokia Labor Condition Standard were used as employment guidelines. We serious security incidents, cases of assessment criteria. assess our performance as well as corruption, discrimination or other Factories were reported as clean, properly managed with the respect our suppliers’ performance regularly. breaches against Nokia’s Code of of employees, and relaxed atmospheres free from any discrimination. Our global employment guidelines Conduct are reported on a global Although the overall results were very good, audits identified determine how we handle employ- level and analyzed for further some areas of improvement. ment issues at each site. improvements. The total number They cover: of reported people incidents in the On the following page is a graph of 2010 audit findings:
second half of 2010 was eight. Compensation fully compliant — Complies with local laws, and Nokia Labor Condition Working time and location Standard requirements. employee wellbeing Recommendations given — Complies with local laws and mostly with equal opportunities Nokia Labor Condition Standard requirements. Confidentiality and privacy issues improvement needed — Not fully in compliance with local laws, and/ guidance on external assignments or clear breaches of Nokia Labor Condition Standard, and/or clear Conflicts of interest management system inconsistencies, and/or factory has not made Efficient communications efforts to improve. f reedom of association, including collective bargaining rights Nokia carries out in-depth assessments of labor conditions at all of our major production facilities every second year. During the intervening period, we also carry out reassessments to ensure any necessary corrective actions have been made, and we conduct some internal surprise audits based on risk analysis. Assessments are carried out against a framework based on International Labor Organization conventions and the human rights declarations of the United Nations. To support the implementation of the framework, all manufacturing facility employees undertake training on the principles of the framework as part of their induction. Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 55
— 3.1.7 — LABOR CONDITIONS (CONT.)
Labor CONDITIONS In nine owned factories
Percentage of tHE FACTories 100
50 KEY fully compliant Recommendations given improvement needed
TOPICS 01 Working hours 02 Compensation 03 Discrimination 04 Freedom of association 05 Forced labor 06 Child labor TOPICS 01 02 03 04 05 06 07 08 09 10 07 Disciplinary practices 08 Occupational health 09 Occupational safety 10 Management system
One area which clearly requires special attention is occupational safety. The manufacturing process itself does not pose safety risks, those arise more from the behaviors and habits of employees such as stacking material in front of an exit door, storing chemicals without proper labeling and inadequate evacuation signs. While individual audit findings in the area of safety are minor, if there haven’t been improvements to correct these small issues the findings are flagged as “Improvement Needed” (indicated by the pink bar). Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 56
— 3.1.7 — Labor conditions (CONT.)
Nokia Code of Conduct Direct external labor Nokia’s Code of Conduct is based on actions and the number of incidents The origins of the forum The percentage of external temp- the highest ethical standards. of discrimination and corruption lie with Nokia’s adoption of the 1994 orary labor in our total production It defines the context of our ethical through our internal grievance European Directive on Information workforce fluctuates throughout the and sustainable business practices. mechanisms and assessment and Consultation of Employees which year. These workers help us meet processes. When making operational requires employees be informed demand in peak production periods Read more about our Code of changes, we always follow local and consulted on common areas and provide cover when our Conduct legislation. In cases of multi-country of interest. The principles and spirit permanent employees are absent. Nokia Labor Conditions Standard changes, we always take the longest of the Works Council directive are Our global policy on direct external The Nokia Labor Conditions Standard required notice period to inform implemented via the Nokia Euro- labor in factories determines how our is based on the International Labor our employees. Forum. The first Nokia EuroForum sites manage external staff. External Organization and UN Human Rights agreement was agreed by Nokia temporary labor is hired through Read more about our approach conventions and has been bench- and its employees in May 1996. The agencies for a maximum time period, to human rights. marked against other international second, revised Nokia EuroForum normally 12 months. When selecting
labor laws and standards. This agreement has been effective as of agencies, we ensure they have COLLECTIVE BARGAINING standard provides a framework to June 13, 2002. complied with all applicable labor Nokia recognizes the right of monitor and assess labor conditions practices. These labor agencies are employees to join unions and enter Nokia EuroForum meets twice a in a consistent manner, and also in the scope of our social audits. collective bargaining agreements. year, usually in June and November, addresses the following issues: Almost all of our manufacturing and consists of 30 employees from Age verification Discrimination facilities have collective agreements in different EU countries and different Our Nokia Chennai factory changed forced labor place with one or more labor unions. business sectors. The employee their recruitment process in early child labor However, practicalities vary according representatives are elected 2010 to include a new identity and freedom of association to country laws and practices. In or nominated according to national age verification method. This new occupational safety Finland, legislation stipulates issues circumstances or practices and serve method was developed in response occupational health on which employees or employee for a period of two years. The Euro- to an internal audit finding which disciplinary practices representatives must be informed Forum meetings are planned and showed that some employees had Working hours or consulted. To fulfill the specifics executed by the preparatory team, used false or falsified school Compensation of the legislation, we operate several which consists of both employee and certificates when applying to work for management systems different employee representative management representatives. The Nokia. In rural areas in India, official bodies, one of which is called Nokia preparatory team also monitors the proof of identity or age is uncommon. The content of this standard is EuroForum. This is a corporate-level evolution of the European Union, The candidates often falsify provided to all factory workers forum that supports Nokia’s business European Works Council directive, the Certificates to appear older and during induction, and information activities by providing formal and and provides a body with whom therefore eligible for work. is also provided through factory- informal opportunities for exchanging management representatives can specific campaigns. E-learning is Under this method, only information and for networking with communicate on matters provided for employees in other original certificates will be accepted colleagues from EU countries. It takes of exceptional circumstances. areas. for verification and will be cross- into account the needs of employees, referenced with data obtained from As part of the human rights and promotes open communications respective government authorities. approach, we follow up and take and interaction between the Candidates will also be directed to the action on operations identified as management and personnel medical center for basic evaluation having risks related to freedom of in Nokia. Most topics covered tend of health and wellbeing. association, child labor, forced and to be around financial performance, compulsory labor, and business units strategy, and operations, both now at risk from corruption. We monitor and in the future. Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 57
— 3.1.8 — Nokia Code of Conduct
Human rights We will respect the rights laid down by the United Nations’ Universal Declaration of Human Rights including freedom from discrimination on any grounds, freedom from arbitrary detention, execution or torture, freedom of peaceful assembly and association, freedom of thought, conscience and religion and freedom of opinion and expression.
Ethical conduct We are committed to the highest standards of ethical conduct and full compliance with all applicable national and international laws, including issues such as labor conditions, antitrust and promoting fair competition, prevention of bribery and corruption, good corporate governance, protection and recognition of copyright, company assets and other forms of intellectual property.
Privacy Respect for privacy is part of our commitment to observing high standards of integrity and ethical conduct in all our operations. We aim to adhere to strict privacy standards when we store or process personal data and customers’ product and service information. Our goal is to develop products and services in ways that ensure users their privacy, minimize the amount of sensitive information that is handled and that sensitive information is treated appropriately.
Environment We are determined to be environmentally aware in all we do, going beyond compliance by improving the environmental performance of our operations and throughout the life cycle of our products.
People We are committed to providing a safe and healthy workplace where all employees OUR Code of Conduct are treated with respect and provided with equal opportunities for development. Nokia’s Code of Conduct is based on the highest ethical standards. It Anti-corruption We have strict zero tolerance on corruption. Employees must avoid any activity defines the context of our that can lead to a conflict of interest including gifts and hospitality, bribes and ethical and sustainable business facilitation payments and political donations. practices. The Code was introduced in 1997, and its last revision was Partners We require our business partners and suppliers to comply with all applicable laws on January 1, 2009 following Group and regulations, and encourage them to go beyond compliance to improve their Executive Board approval. While the management of ethical, environmental and social issues. fundamental principles have remained the same, the revision has Reporting concerns Employees should raise concerns with their line manager, local human resources expanded sections on areas such as department, the Ethics Office, legal department or security department in environmental and privacy issues the first instance, as they can address the concern or advise whom to contact if with continued emphasis on ethical, escalation is required. Employees can also report concerns through the electronic responsible and sustainable business channel established by Nokia’s Board of Directors which is available on conduct. The Code of Conduct the company’s website. has been translated into the 34 most widely spoken languages in the company and is available on our intranet and external website. It covers the following areas: PEOPLE
Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 58
— 3.1.8 — Nokia Code of Conduct (CONT.)
OUR PROGRESS IN 2010
By the end of 2010, 98% of all Nokia indirect employees (mostly office employees) had taken the Code of Conduct training, mostly using the e-learning platform. In the factories, with mostly direct employees, the classroom training reached 88% completion by year-end. The average time spent per individual on the e-learning program has been 20 minutes and for the class room setting specifically designed for direct employees, Ethics training and awareness the session lasted on average one hour. The training program was also The Nokia Ethics Office is responsible launched at NAVTEQ and Nokia Siemens Networks. for supporting all employees, including NAVTEQ employees During 2010, the Ethics Office was contacted by more than 750 employees in matters related to the Code of worldwide. Well over 600 queries were triggered by the Code of Conduct Conduct. The Ethics Office ensures training which generated huge interest and many follow-up inquires. that the Code is integrated in all Other questions covered a wide range of topics including business business activities, providing ethics, employment, business conduct, supply chain, privacy guidance to employees faced with and content. difficult decision-making situations and helping them understand how to apply the Code of Conduct in their everyday working life. Employees may also report violations directly to the Board of Directors anonymously. During 2009, we began a company- wide online training program offered in 13 languages, with the aim of raising employee awareness of the new Code and of the way we conduct business. The training program has been designed to help employees identify and solve ethical dilemmas they may face in real-life situations, know who they should ask for support and where to report concerns. We also offer classroom training for employees who do not have access to computers. The training covers topics such as bribery and corruption, health and safety,labor conditions, and how to report concerns about unethical conduct, corruption or any suspected violations of Nokia’s Code of Conduct. Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 59
— 3.2 — Customers
NOKIA LIFE TOOLS Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 60
— 3.2.1 — Customer satisfaction
Operators To support our operator customers’ OUR PROGRESS IN 2010 sustainability agenda we focus on In 2010, more than 650 key working together to develop customer representatives from 200 solutions, such as take-back and customer accounts in 77 countries recycling campaigns. Sustainability around the world participated in provides a wide array of collaboration our Listening to Trade Customer opportunities that differentiate Nokia survey. Overall, trade customer and its operator customers from satisfaction with Nokia decreased competitors. Nokia continues Delivering customer satisfaction is in 2010, while satisfaction with to receive inquiries and assessment not only about meeting needs, but some of our key competitors requests about social and enviro- about creating value for our increased. customers and consumers by nmental performance from our increasing the sustainability of our operator customers. We respond to According to the survey, the main devices throughout the product those requests through our normal drivers of the shift were reduced lifecycle. We continuously customer account management satisfaction with high-end product research the views of both groups interface. offerings and with customer to understand where we are marketing. Overall relationship succeeding and how we can do better. satisfaction remained high. We are committed to protecting “Nokia is one of Deutsche Telekom’s relevant strategic suppliers Trade customers’ perceptions of customer privacy. for mobile devices. Our strengthened long-term business relation is environmental performance in 2010 based on a collaborative partnership that can be verified in different Trade customers showed that Nokia continued to be joint activities and projects. Focusing in particular on sustainability the most highly regarded. There is Each year an independent issues, Deutsche Telekom recognizes Nokia’s industry-leading efforts market research company helps us great disparity between vendors to make its supply chain more sustainable and also how it embraces in trade customers’ perceptions. to research trade customers’ views innovative technologies.” on Nokia through our Listening to On average, almost one-third of Trade Customer (LTC) survey. A people responding were unaware sample of executive and operational of their vendors’ environmental contacts from the companies that performance. make up about 80% of Nokia revenues are invited to take part. Feedback from the survey is used to drive action planning at the local and global levels. At a local level, Nokia account managers discuss the survey findings with their customers and take relevant actions. The consoli- dated feedback is used to understand where systematic improvements are needed. Customer participants Luis Neves receive a response letter from Nokia’s Corporate Communications CEO highlighting the survey’s overall Deutsche Telekom AG findings and the key improvement actions taken. Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 61
— 3.2.2 — — 3.2.3 — Customer privacy Accessibility
Understanding more about health effects OUR PROGRESS IN 2010 Protecting customer privacy We have a corporate-wide privacy specific groups are now finding uses has always been important to Nokia. governance model, which ensures in the general population, especially In 2010, we offered new features It is becoming even more important that privacy considerations are an among older generations. or applications that provide greater as we develop new services to integrated part of Nokia’s business accessibility for people with Technological advances, especially take advantage of the convergence processes. This includes product and limitations in hearing, speech, vision, in the smart phones, are making of internet and mobile technologies. services design, creation, delivery, mobility and cognition. This builds handsets more accessible. We can These services enable consumers to marketing, sales, branding and on more than 10 years of our work offer dozens of device features or use and share their personal infor- incident handling. Consumer data is around accessibility concerns. The applications for people with disabili- mation in new contexts. To remain always protected using necessary Nokia Wireless Loopset LPS-5 is a ties. Screen magnification, voice a trusted brand, Nokia will and must security controls. t-coil-equipped hearing aid which dialing, text-to-speech processing ensure that this custodial information enables those with hearing Privacy and Security reviews are part and enhanced personalization options is protected from any threats. impairments to conveniently use of defined product development are now featured in an increasing a mobile device. Respect for privacy is part of processes with Nokia. Once a product number of handset models. Nokia our commitment to observing high has been available to consumers for has been working on these features Engaging stakeholders We continued our discussions with standards of integrity and ethical an adequate period of time, conti- that enhance the accessibility of our representatives from disability conduct in all our operations. Our nuous security tests are conducted devices for over a decade. organizations, regulators, target is that consumers trust Nokia throughout the product’s life cycle. In 2009, we introduced new function- developers and academia on new to fulfill their privacy expectations. These assessments help Nokia and alities for accessibility. Nokia Braille solutions for accessibility. This should happen through Nokia our partners to manage and take care Reader, an experimental application, being open and transparent, and Testing new features of security-related risks, and to issue helps visually impaired people read allowing consumers to be in control We’re also continuing to test new recommendations against such risks. text messages using Braille and of their personal information. features such as High Accuracy The security assessment is tactile feedback. We introduced an www.nokia.com/privacy Indoor Positioning (HAIP), which an essential part of a functioning improved version of Nokia Magnifier: uses technology to bring accurate relationship between Nokia and our available for download at the Ovi localization and navigation indoors. collaborating parties. Security assess- Store, this is an application that uses This helps people find their ments are conducted by Nokia the device’s camera as a magnifier, destination in a complex enviro- Corporate Security, Nokia IT helping users read small print. We nment such as a shopping mall. (IT security-related) or external also offer enhanced voice functions Moreover, real-time texting, a mode service providers contracted on some device models, allowing of textual conversation, is being by Nokia Corporation. users to make and receive calls, read tested by hearing-impaired pilot messages and send audio messages All people, without discrimination, users in a Reach112 project in eyes-free, hands-free mode. should be able to communicate. Nokia funded by EU. is bringing wireless communications to an estimated 600 million people worldwide who have a recognized disability or need for improved accessibility. Our goal is to offer devices that take these needs into consideration, whether in regards to vision, hearing, speech, mobility or cognition. Many of the features developed to better serve these Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 62 PEOPLE — PEOPLE3.2.4 — Product safety PEOPLE Product safety is a top priority for From time to time, there are reports Nokia has funded research on mobile Nokia. All Nokia products operate in the media of individual research telephony and health, principally below the relevant international studies which suggest that there may through the Mobile Manufacturers exposure guidelines and limits be adverse effects related to mobile Forum (MMF), an international set by public health authorities and phone use. Since 1995, expert panels association of telecommunications international expert bodies, such and government agencies around the equipment manufacturers with an as the International Commission on world have performed more than 110 interest in mobile and wireless Non-Ionizing Protection (ICNIRP) and reviews of the scientific evidence communications. These programs the US Federal Communications regarding health effects from Radio and projects, listed on the Commission (FCC). Frequency (RF) exposure. MMF website at www.mmfai.org, are jointly funded with governmental We are committed to transparency For example, the WHO notes that “A organizations and other industry and responding to our customers’ large number of studies have been forums. Importantly, neither the MMF questions about mobile phone performed over the last two decades nor its individual member companies safety. Our website at www.nokia. to assess whether mobile phones have any editorial influence on the com/emf contains information and pose a potential health risk. To date, publication of the research results. links to other sources. For example, no adverse health effects have been Nokia continues to be a member since October 2001, Nokia has established for mobile phone use.” of the MMF. voluntarily made Specific Absorption WHO has identified areas for further Rate (SAR) information available, research and is to conduct a health helping our consumers to make risk assessment of Electric and informed choices. SAR information is Magnetic Fields (EMF) in 2012. The included in our product user guides International Agency for Research on and can also be found at Cancer (IARC), a WHO-specialized www.nokia.com/sar. agency, is expected to review the carcinogenic potential of mobile We support the World Health phones in 2011. Organization (WHO) in its efforts to coordinate global regulations on electromagnetic fields. These are based on the widely recognized guidelines issued by the International Commission on Non-Ionizing Radiation Protection. PEOPLE
Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 63
— 3.3 — Stakeholders
We consider our most important In the future, our stakeholders are stakeholder groups to be employees, looking to us to provide more data customers, and our shareholders. and metrics to support our We also cherish and rely on good sustainability activities, such as in relationships with our supply chain reporting emissions, and increasing and sector partners, governments the number of recycled devices. We and other policy makers, NGOs and are also expected to anticipate trends the wider community. and continue to play a leading role in addressing emerging sustainability Our main channels for engaging issues such as biodiversity and the stakeholders are: public and environmental impact of the whole internal campaigns, small and large supply chain. group engagement, specific and attitudinal surveys and feedback. Engaging across channels Much of our stakeholder engagement We are an active and engaged takes place as part of normal participant in many industry and business practice. We cover specific sector organizations, not only those stakeholder activities that occurred specifically concerned with sustain- in 2010 in relevant parts of this ability. This helps us to be better report. informed on issues and trends and to share our learning with others for Listening to employees and external the greater good of all. In playing a parties and translating their positive role we regularly contribute expectations into business value to the working groups and is an important Nokia process. Our committees of the organizations ‘Engaging You’ value defines what we listed below. We also participate in stand for in the world and a number of public policy develop- predisposes our business approach ment initiatives across the world in to be transparent and stakeholder- areas that are close to our business, focused. Coupled with our ‘Achieving including telecommunications, trade, Together’ value, which point us technology, industry, education and towards trusting and collaborative environment. business approaches, our stakeholder relationships help drive progress We constantly strive to activate for us as a business. new channels concerning the ways in which we meet our existing expectations, while at the same time we continue to identify new trends down the road. This window into the future is an important part of our ongoing success as it allows us to understand where systematic improvements can be made. Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 64
— 3.3 — Stakeholders (CONT.)
We engage with the following key international organizations:
Organization Specific interest area Nokia’s engagement
Business organizations
Digital Energy Solutions Campaign (DESC) Promoting the use of ICT to address climate change and Member energy security
European Digital Media Association (EDiMA) Policy advocacy in Europe Nokia representative is Chairman of the Board
European Roundtable of Industrialists General advocacy for European industries (48 largest Member European companies)
International Chamber of Commerce (ICC) Business sector Member
RosettaNet Supply chain trading network Member
Sectoral organizations
CTIA – The Wireless Association Wireless industry trade body Member
CARE Electronics Environmental R&D for electronic sector Supporter
Digital Europe Policy advocacy in Europe Member and Chair
Global e-Sustainability Initiative (GeSI) Sustainability in ICT sector Member and board member
Information Technology Industry Policy advocacy in US ICT Member Council (ITI)
Solving the E-Waste Problem (StEP) Waste issues Member
Trust in Digital Life Consortium Setting a vision for trustworthy products Founding Member Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 65
— 3.3 — Stakeholders (CONT.)
Organization Specific interest area Nokia’s engagement
Sustainability organizations
United Nations Educational, Scientific and Sustainable development Signatory and member of Education for Cultural Organization (UNESCO) All initiative
United Nations Global Compact Business sustainability guidelines Signatory and members of Caring for Climate initiative
World Business Council for Sustainable Sustainability and business Widespread cooperation, Nokia Chairman Development (WBSCD) is chair
Worldwide Fund for Nature (WWF) Climate-focused business environment initiative Widespread cooperation
Nokia sustainability report 2010 3 PROGRESS IN: PEOPLE 66
— 3.3 — Stakeholders (CONT.)
Education policy Our Education Policy team commu- multiplying Nokia’s own efforts. In Research to improve clean the reach of mobile innovations to nicates with governments and 2010 the NRC had 13 strategic water access in Haiti low-income consumers. The educational institutions to help them partners including Aalto University Nokia Technology Days and objective is to accelerate the closing shape and modernize education of Helsinki, University of Tampere Mobile Innovation Camps and of the digital divide, and to ensure systems and syllabi, to better reflect and Tampere University of Contest in China that citizens around the world have the needs of global competition and Technology in Finland, University of Smart environmental applica- ubiquitous access to high-quality the ICT revolution. The team also Cambridge in the United Kingdom, tions developed at Imperial content and services. communicates with our business EPFL Lausanne and ETH Zurich College London in the United Nokia collaborates with the mLab units to identify their long-term in Switzerland, Tsinghua University Kingdom on the ground by providing in-kind competence requirements and and Beijing University of Posts and Public Private Partnership program contributions in the form of technical to help them find partners in the Telecommunications in China, between Finnish Government, infoDev assistance, training material, devices training and education of personnel. Massachusetts Institute of (World Bank) and Nokia for the testing laboratory and Technology, University of California In December 2009, we signed a special In 2010, Nokia joined the European mentoring of mobile entrepreneurs. Berkeley, University of Southern partnership program for creating Coordinating Body in Maths, Science Nokia is also committed to organizing California and Stanford University sustainable businesses in the and Technology Education (ECB), a developer events and competitions in the United States. knowledge economy. The program large-scale strategic consortium that in collaboration with the mLabs as is a first of its kind Public Private aims to reinforce links between science The Nokia Donations Program well as to purchase services from Partnership program which brings education and science and technology granted a total of 121 donations to the incubated entrepreneurs in together the Finnish Government, careers in the private sector. The ECB university cooperation in 2010: 11 the form of locally relevant infoDev and Nokia. infoDev is a focuses on reinforcing industry and in Africa; 28 in the Americas; 42 in applications, localized content and research, capacity-building and education partnerships, and seeks to the Asia-Pacific region, including 13 potential research projects. advisory program under World Bank, increase young Europeans’ interest in China and 19 in India; and 40 in which helps developing countries A total of five mlabs with regional in mathematics, science and techno- Europe, where activities were split and their international partners to reach will be established between logy education and careers. The ECB between Denmark, Finland, Germany, use innovation as well as information 2010 and 2012. is a multi-stakeholder consortium of Russia, Spain, Switzerland and the and communication technologies 28 partners in 16 countries, United Kingdom. Specific programs Nokia’s first two mLabs are currently effectively as tools for poverty associating Ministries of Education, supported by Nokia included: under construction in South Africa reduction and sustainable economic businesses and universities. It is and Kenya and will be inaugurated the Open Innovation Africa and social development. supported by DG Research under the during the first half of 2011. These summit in Kenya, creating a 7th Framework and coordinated by The program aims to strengthen are already providing a high-tech forum where the key stakeholders theEuropean Schoolnet program. the productive capacity of small and space for mobile entrepreneurs to across the continent came medium enterprises (SMEs) in the build their skills, test and certify their Working with universities together to kick-start a holistic, agribusiness and ICT sectors in innovations, gain access to Nokia’s collaboration with academic multi-party process in developing countries in Africa, Asia international markets and get institutions can be broadly split into developing an African open and the transition economies of connected with potential financiers. two types of activities: Nokia Research innovation ecosystem Eastern Europe, Caucasus and Central Center University collaborations and c ooperation between University EXTERNAL FUNDING Asia. Nokia acts as the technology Nokia Donations Program. of Nairobi, Helsinki University During 2010, Nokia received and knowledge partner, establishing of Technology and UC Berkeley some funding from governmental Nokia Research Center (NRC) focuses mLabs in the three program regions. Research into the area of youth organizations (e.g. research and on engaging the world’s leading The mLabs focus on supporting and mobile media and the development financing from Tekes, academic institutions in driving global innovators who develop applications empowering effect of affordable the Finnish Funding Agency for intellectual vision and insight and and content with positive socio- mobile internet access Technology and Innovation). building global test beds to learn economic impact and which expand from broader audiences, thereby Nokia sustainability report 2010
— 4.0 — PrOGRESS IN DETAIL : OPerations Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 68
— 4.1 — — 4.1.1 — Environmental management Environmental management systems
In order to operate responsibly, Since the introduction of Nokia’s Our environmental management Our environmental management environmental issues are fully Environment Policy in 1994, we’ve system is an integral part of our system consists of: integrated into the way we work. based our approach to environmental common global management Nokia’s Environmental Policy This means we have a standardized management on global principles and structure. Nokia has used the Clearly identified environmental approach to managing our standards. Our targets go way international ISO14001 standard as issues and evaluations of their environmental impact in our beyond legal requirements. the foundation for our environmental significance operations around the world, and in Environmental issues are a key factor management system for over 15 objectives and programs for the operations of all of our suppliers. in decision making across our years. The ISO 14001 identifies the achieving environmental targets business, and we believe they are elements needed for a continuously compliance mechanisms everyone’s responsibility at Nokia. improving the environmental for meeting legal and other management system, building regulatory requirements the backbone of the system together audits, assessments, with the Nokia Environmental Policy. management reviews and other mechanisms for continuous The Nokia ISO 14001 certificate improvement covers all ten of our factories globally. MANUFACTURING o perational management (data In 2000, the first Nokia production and processes) for key indicators sites were certified against this such as energy and water use international standard. When all our factories had achieved their individual The Environmental Management certificates, we combined them under System is integrated with the a single company-wide certificate. quality management system, and If Nokia devices are assembled at our we use the overall management contract manufacturer’s site, they processes to address both issues in also are obliged to have a certified our production. We have set global environmental management system guidance and reporting to follow according ISO 14001 at that specific up these agreed activities. site. Nokia also requires a certified EMS from all of our suppliers. Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 69
— 4.1.1 — Environmental management systems (CONT.)
Auditing of the environmental management systems Setting targets in our factories Supplier requirements To ensure we continuously improve We are working to reduce our In regards to environmental impact, and maintain our environmental environmental impact by setting Nokia requires all our suppliers to management system we run ISO global and local targets in our have environmental management 14001 audits through external factories. We verify improvements systems in place. In 2010 91.7% of auditing organizations, such as the to our processes through internal our direct hardware suppliers’ sites Det Norske Veritas. Research & assessments and external serving Nokia were certified to ISO Development (R&D) is audited verifications. Any deviations are 14001. against ISO 9001, and factories are followed up, corrected and Read more about our progress audited against the ISO 9001:2008 monitored until they are resolved. on supplier requirements. and ISO 14001:2004. About Our main environmental focus areas 50% of our factories are audited in factories are: each year. Continuing to manage our Measuring our performance office sites Increasing the energy efficiency The goal of the Nokia environmental The following factories were audited We have combined all Nokia’s large of our production processes and management system is to improve during 2010: Masan, Cluj, Vertu, office sites under one internally factory premises our environmental performance, Komarom and Manaus. The global verified environmental management Reducing CO2 emissions focusing on: demand-supply network system, which follows the rules of ISO increasing waste utilization management process is audited 14001. In offices we concentrate on energy consumption (increase improving the material every year. workplace solutions and building the energy efficiency of our management infrastructure. production processes as well monitoring the use of water as sites) m onitoring air emissions (such Waste management (avoid as Volatile Organic Compounds). generating waste, increase waste utilization) Our factory targets are to: Water use Reduce energy consumption per a ir emissions (avoid emissions manufactured unit by 5% annually of Volatile Organic Compounds) between 2008 and 2012, ozone-depleting substances compared to a 2008 base year Reduce waste sent to landfill from our factories by half annually between 2008 and 2012, compared to a 2008 base year Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 70
— 4.2 — Environmental impact
Green logistics Reducing waste Nokia aims to be a leading company Reducing the negative impact of our Our goal is to reduce all waste to a in environmental performance. We logistics is important part of our minimum, especially waste destined continue to find new ways of reducing environmental strategy, although to end up in landfills and to find uses our own emissions and managing logistics are conducted by a third for the waste material instead. waste across our factories, facilities party. Our approach takes all Non-hazardous packaging waste and offices. By setting ourselves new processes into account, from from our factories is the biggest
targets to reach and developing new transportation of components to care percentage of our total waste, and CASE study partnerships both inside and outside logistics for repair, reuse and recycling. we monitor with detailed reporting our industry, we can minimize our The new smaller sales package can the amounts of both hazardous and Environmental management in retail stores negative impact and drive positive reduce transportation-related CO2 non-hazardous waste from our change. emission levels by 20 - 40% compared factories and offices. to previous types of packaging. Nokia further updated and Climate strategy and energy Water usage continued to apply its sustainability efficiency Although our own water consumption guidelines for Nokia Retail stores The way we address the global is small, we continue to monitor in 2010. We made progress on challenge of climate change through our usage throughout our operations. reducing our energy demands from energy efficiency in our products and Most of our water use occurs for lighting and information and operations is an integral part of our sanitary and catering purposes, communications technology (ICT) overall environmental strategy. We and to a smaller extent in gardening in store by moving to lower energy created a separate climate strategy and facilities management, such as 20% - 40% options. We use timber to some (which is part of our environmental cooling towers. Our production Less emissions extent in the construction, fit-out strategy) in 2006 and it has been processes do not consume water. updated twice since then, including and furniture of our retail stores. Protecting biodiversity in 2010. It includes a range of targets We are making progress in ensuring Our natural ecosystem is crucial and our performance for certain that all the timber we use comes for all life on Earth, and scarcity targets is externally verified. Although from sustainable sources, even of natural resources poses risk Nokia is not part of an energy- though this has proved particularly for business. At the same time, challenging in emerging markets. intensive industry, our operations safeguarding biodiversity gives do have an impact through energy We are also examining the end an opportunity to create new consumption and resulting emissions. of life issues of our furniture and value and contributes to sustainable As we aim to connect the next billion, progressing a deal with reuse development. Nokia believes that partners. Internal audits have been we need to decouple the growth Supply chain halting biodiversity loss requires of our business from the many ways carried out for owned retail stores With a complex supply chain that a multi-stakeholder effort, and wants we consume energy in our operations. to ensure operational performance stretches around the world, involving to take an active role in protecting We work to achieve this through after the design phase. thousands of people, understanding the variety of life. energy-saving initiatives across and managing our environmental In 2010, we renewed our retail our business, and by purchasing impact is an ongoing challenge. Supply supplier base partly based on green electricity where we can. chain environmental issues are sustainability criteria. Suppliers covered in the Suppliers section (4.3.) were also requested to fill in self- assessments, and certain suppliers were visited based on the results. We continue to address sustainability in regular supplier meetings. Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 71
— 4.2 — Environmental impact (CONT.)
2010 SNAPSHOT
We reached and exceeded our targets to reduce facility-related CO2 emissions by 10% in 2009 and 18% in 2010 compared to the 2006 level
We created 8% of new energy savings in technical building maintenance systems between 2007 and 2010, in addition to the savings of 3.5% achieved already from 2003 to 2006
Slower than expected development of renewable energy markets was one of our key challenges
Our CO2 emissions from air travel have been reduced by 40% from the 2008 base level
Nokia was one of the three of the Carbon Disclosure Project IT sector leaders in both performance and disclosure rankings
We continued our trend of reducing waste sent to landfill
Nokia’s own water consumption remained at a low level
Our factory in Chennai, India was announced as the winner of the “Golden Peacock Environment Management Award” for the year 2010 This prestigious award recognizes Environmental Management in India, that demonstrates a balance between economic and sustainable growth
Nokia was the first company to partner with IUCN on the Save our Species initiative Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 72
— 4.2.1 — Climate strategy
We created our first climate strategy Nokia is not an energy intensive Our current focus areas in green- in 2006. The strategy looks at the company. Most of the greenhouse house gas emissions reduction are: energy consumption and greenhouse gas emissions related to our products Products gas emissions of our products and comes from component manu- m anufacturing, facilities and operations and sets energy and facturing by our suppliers or from way of working greenhouse gas emission reduction the actual use of the products. logistics and supply chain targets for our most important Regardless, we aim to show leader- helping our customers to reduce activities in areas that contribute to ship by reducing our own energy their own greenhouse gas our direct and indirect greenhouse consumption and carbon footprint, emissions gas emissions. The climate strategy raising consumer awareness on targets were reviewed and updated measures they can take to reduce during 2010. their own footprints and driving best practices in our value chain and STRATEGY CLIMATE industry. Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 73
— 4.2.1 — Climate strategy (Cont.) Our climate targets
Devices and accessories product use Logistics HElping customers reduce their Our aspirational target is to reduce Reduce the average charger’s Reduce greenhouse gas own greenhouse gas emissions the greenhouse gas (GHG) emissions no-load power consumption emissions per sales package Our climate targets address how caused during the whole device life by 75% by 2012 (2006 baseline) produced by 20% by 2012 we can reduce our environmental cycle by over 60% by the year 2020 continue to study new (2008 baseline) impact through our operations, 3 but we can also have a net positive compared to the level in 2000 . technologies which will use Supply chain impact by offering our customers To reach this, we have set ourselves renewable energy, such as e nsure that all our key products and services that enable targets for specific areas of the device solar panels and kinetic energy, suppliers set energy efficiency them to reduce their own emissions. life cycle: and develop solutions that and greenhouse gas emission We aim to enable people who use enhance the energy efficiency in reduction targets by 2012 our products Nokia phones to reduce their Travel and commuting greenhouse gas emissions several Manufacturing and our facilities m aintain annual air travel- times more than caused during Reduce energy used in related greenhouse gas the life cycle of their devices. production by 20% per unit emissions, both total and per Our goals are: produced by 2012 (2008 baseline) employee, clearly below 2008 develop solutions that enable Reduce greenhouse gas emissions levels by 2012 mobile phones to replace per person working in Nokia Renew the Nokia remote several other products offices and R&D by a minimum working framework and (convergence) of 23% by 2012 (2006 baseline) increase the number of Reduce greenhouse gas countries where employee d evelop mobile services that emissions in our offices, R&D public transport options are replace physical products sites and manufacturing facilities offered and car lease policies (dematerialization) greenhouse gas emissions by are tied to lower emissions develop services that reduce a minimum of 30% by 2020 (2006 limits the need for unnecessary baseline, assuming no major travel and commuting (such business volume or headcount as navigation, virtual meetings changes) and remote work) continue the development of our Green Data Center strategy develop and apply best that is already implemented in practices to measure the Finland, delivering targeted impact of our enabling effect cooling, environmentally friendly See CO2 emission reduction backup power and power-efficient case studies at the end of this server racks section.
3 – Our overall target is based on our Life Cycle Assessment (LCA) methodology and actual data (when available). We take into account all the life cycle phases through this methodology: raw materials & components, inbound and outbound logistics, Nokia operations (manufacturing & facilities, business travel & commuting), use phase (the impact of charging and “no-load” time, or when a charger is plugged into the mains without a device attached) and end of life phase which focuses on recycling the device. Because there is currently no standard for LCAs, databases and data accuracy, as well as devices and their functionalities, are likely to develop over the next decade. This will make the direct year on year device comparison challenging as we measure our progress. We will aim to use comparable techniques and compare devices with similar functionalities to address this challenge. Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 74
— 4.2.1 — Climate strategy (Cont.) Logistics
OUR PROGRESS in 2010 CASE STUDIES
We reached and exceeded our Supply chain: During 2010, These case studies illustrate how Converged devices target of reducing no-load power 71,9% of direct suppliers that Nokia products and services can If only 10% of the over 1 billion used by our chargers by 50% have the greatest environmental help people to reduce their CO2 people using Nokia devices would from 2006 to 2010. impact or are strategically the emissions. use their mobile device instead most important had company- of buying a separate music player, We created 8% new energy REduced travel & commuting level reduction targets for camera, video camera, PC, fixed- savings in technical building line telephone and a car navigator, energy, carbon dioxide Use your mobile to avoid maintenance systems between we would avoid around 73 million (equivalent), water and waste in unnecessary business travel 2007 and 2010, in addition to the tonnes of CO2 emissions during place and monitored. 3.5% savings achieved from 2003 If only 10% of the over 1 billion a year. to 2006. Therefore we exceeded Packaging: During the past people using Nokia devices would That’s equal to the emissions of our 6% target set for 2012 already 5 years, we have reduced the use their mobile device for attending a meeting instead of travelling flying 15 million people around the in 2010. size of our packaging throughout world once. our portfolio by 50%. This has there by plane even once a year, We reached and exceeded our saved 240,000 tonnes of paper. we would avoid around 88 million targets to reduce facility-related tonnes of CO2 emissions. Have it all in one device The subsequent reduction in carbon emissions by 10% in 2009 transportation loads has also This roughly equals to the average A recent study shows that many and 18% in 2010 compared to resulted in significant CO2 and fossil fuel-based emissions people have already replaced their 2006 levels separate devices with a smartphone: cost savings. of 20 million people in one year. We have achieved a 40% 17% have replaced their car We continue to investigate reduction in CO2 emissions from Use mobile devices to work navigator opportunities to join further r e m ot ely air travel in 2010 (2008 base level). 12% have replaced their music voluntary initiatives to promote Total emissions from air travel Let’s assume that just 10% of player energy efficiency across the were 75,900 tonnes in 2010, which people using Nokia devices would 7% have replaced their camera industry. One way we achieve is 2.8% more than in 2009. This is use their mobile device to work 6% have replaced their video this is by providing solutions and because average flight distance remotely once a week instead of camera influencing policy makers to increased in 2010, while the driving to work. 3% have replaced their game realize the role and potential of number of flights actually console ICT in reducing economies’ overall This could reduce global CO2 decreased. This means that the 1,454 people energy consumption when emissions by some 62 million who participatedCAR NAVIGATION in the study addressing climate change policies. tonnes a year. have saved over 43,000 kg of CO2e. This is more than the annual fossil Nokia continues to be a member fuel based emissions of countries of the UN Global Compact’s like Portugal, Colombia or Nigeria. Caring for Climate initiative. Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 75
— 4.2.1 — Climate strategy (CONT.)
CASE STUDIES
Internet browsing and video Car navigation – use navigation calls on your mobile Browse the internet using your Several studies show that using mobile device car navigation services can result in 5% to 15% fuel savings. NAVTEQ With the same amount of energy Navigation Benefits Study (2009) used for one Facebook status shows that with regular use people update with a desktop computer, actually drive shorter distances you can post over 100 updates and spend less time on driving: with your mobile. Fuel efficiency increased by If 10% of the over 1 billion people 12% and saved about 375 liters using Nokia devices used their of fuel that equals close to one mobile instead of their desktop tonne of CO2 emissions per year computer for internet surfing people also drove nearly 2,500 half an hour a day, we could avoid km less, which would save 1.19 over 1.9 million tonnes of CO2 million tires in Germany alone emissions per year. If 10% of the over 1 billion people This equals the annual green- using Nokia devices would save house gas emissions of around 5% of their driving-related CO2 574,000 cars. emissions with the help of car navigation we could avoid over 22 Use mobile device for video calls million tonnes of CO2 emissions With the same amount of energy per year. This equals the annual CO2 emissions of around 6.5 million cars. used for a ten minutes webcam DID YOU KNOW IN 10 YEARS... talk with a desktop computer What’s more, you don’t need a and large LCD screen, you can separate navigation device, just have a mobile video call for over a Nokia smartphone that has Ovi 18 hours. Maps Navigation for free. And with a mobile, you can have your video call wherever you want. Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 76
— 4.2.2 — Energy efficiency
Our facilities Although Nokia is not part of an In 2010, we had more than 550 We make continuous efforts to save energy-intensive industry, our facilities around the world, including energy within our facilities’ technical operations do have an impact 10 production sites and around 40 systems. Going forward, we will set through energy consumption and Nokia and Vertu retail stores. As our next targets as Key Performance resulting emissions. As we aim to around a hundred of these buildings Indicators (KPIs) for different facility connect the next billion, we need to cause 90% of the total environmental functions, i.e. for factories, offices decouple the growth of our business impacts, this is where we focus on and data centers replacing our single from the many ways we consume improving our performance. combined target. In offices, the main Our progress in 2010 energy in our operations. indicator of efficiency is energy Our approach to greener buildings Our new facility energy savings consumption and related emissions Energy efficiency initiatives involves a combination of standards, in 2010 were around 8,500 MWh, per person; in factories it is the Thanks to our energy-saving local energy efficiency initiatives and which brings our 2007-2010 emissions per unit produced; and initiatives around the world, new ways of thinking about how we cumulative savings to more than in data centers we measure power we continue to reduce the energy can use space effectively. 49,000 MWh. The 6% target we usage effectiveness (PUE), we consume. We measure energy set ourselves to be reached by In 2010, Nokia facilities (including specifically how much of the power consumption across our factories, 2012 was 35,400 MWh, so we are NAVTEQ) consumed 75 GWh of direct is actually used by the computing offices and R&D sites. happy we were able to reach and and 597 GWh of indirect energy. This equipment in contrast to cooling and exceed this target already in 2010. energy consumption caused 14,000 other maintenance energy. tonnes of direct and 226,000 tonnes In 2010, Nokia (including NAVTEQ) of indirect greenhouse gas (CO2e) was able to reduce facilities’ CO2 emissions. Direct energy means our emissions by 19%, compared use of gas and oil while indirect with the 2006 level. This reduction energy refers to our use of electricity, was achieved through the above- district heating and district cooling. mentioned energy efficiency Without our purchase of certified measures, renewable energy green energy the above-mentioned purchases, and by supporting Gold indirect emissions would have been Standard certified renewable greater by 60,000 tonnes. energy project in China. Nokia’s CO2 calculation methodology for its own operations was verified in 2008 and since then a third party has provided assurance for these annual emission figures and results. Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 77
— 4.2.2 — Energy efficiency (CONT.)
Facility greenhouse gas emissions
Tonnes G/DEVICE
300 000 900
250 000 750
200 000 600
150 000 450
100 000 300
50 000 150
2006 2007 2008 2009 2010 KEY direct CO2e Emissions indirect CO2e Emissions CO2e/Mobile Device Our facility related CO2 emissions were 208,000 tonnes in 2010. Without our purchase of certified green energy emissions would have been greater by 60,000 tonnes. In addition, in 2010, we offset 32,500 tonnes of carbon by supporting Gold Standard-certified renewable energy projects in China. Facility greenhouse gas emissions (CO2e) include also minor HFC-refrigerant emissions. CO2e/device follows the same declining trend. Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 78
— 4.2.2 — Energy efficiency (CONT.)
Our offices In 2007, we created a global property By implementing mobile office strategy which integrates Leadership concepts smartly, we can also use in Energy and Environmental Design space more effectively, serving more (LEED) certification. LEED is an employees with the same amount internationally recognized green of energy. For us, running a mobile building certification system, office means a flexible way of providing third-party verification working, that reflects the needs of that a building or community was different employees. We can provide Our progress in 2010 designed and built using strategies a variety of spaces for collaboration, We reduced energy consumption We achieved a LEED Gold aimed at improving performance. formal and informal meetings, calls in offices and R&D premises certification for our office and personal concentration, while at We aim to include LEED Gold by 6.5% in kWh/person, while the refurbishments projects in Paris, the same time having fewer fixed certification in the specification of our amount of kWh/m2 increased by France and Southwood, United personal desks. key real estate projects for both new 1.8%, compared to the previous Kingdom. In addition to the constructions and major renovations. We develop energy savings initiatives year. For 2011 we have set ourselves completed projects, during the This helps us to avoid emissions by across our office and R&D buildings. a target to reduce emissions by year we started five projects in having energy-efficient solutions in To give some examples of 2010 15% per person in office and R&D the Americas, Europe and India. place from the beginning of the life progress, we replaced fluorescent buildings, compared to 2006. Altogether 10% of our space cycle. For smaller leased sites our lamps with LED-lights in our buildings was LEED Gold certified at the We created 3-year emissions options are more limited, but we are in Denmark, Singapore and Beijing. end of 2010. reduction roadmaps for our office able to apply green lease contracts In Finland, we installed motion and R&D premises. Our intent was As of 2011, we will broaden our and select buildings which perform detection systems to replace manual to find carbon and cost-effective green buildings scope so that when better than average. lighting controls in several occasionally combinations of actions for our leasing premises or performing used spaces, like dressing rooms and different sites, concentrating smaller renovation works, we will garbage areas. on the carbon arising from energy also prioritize and adopt other consumption. On existing green building certifications than sites owned or having long lease LEED. These could include e.g. contracts, we will continue our the Building Research Establish- energy efficiency investments and ment Environmental Assessment search for on-site renewable Method (BREEAM) or the DGNB energy options. of the German Sustainable Building Council. Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 79
— 4.2.2 — Energy efficiency (CONT.)
office and r&d co2 emissions per person
Tonnes per person
4.00
3.50
3.00
2.50
2.00
1.50
2006 2007 2008 2009 2010 KEY CO2/Office Persons, Gross CO2/Office Persons, Net In our office and R&D buildings we drive energy and emission improvements by setting targets per persons, which supports also effective space usage. Gross emissions do not take into account CO2 reduction caused by green energy purchases or offsetting, while net emissions do. Our target for gross emissions is 15% reduction in 2011, compared to 2006. Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 80
— 4.2.2 — Energy efficiency (CONT.)
Office hardware We take the energy efficiency of Our approach to reducing the Our progress in 2010 IT hardware equipment into account carbon impact of our global during procurement. All laptops, datacenter operations focuses on Due to better energy efficiency Our energy savings in 2010 were desktop computers, workstations active consumption measurement, of PCs and monitors, we estimate less than in 2009, when we achieved and monitors purchased by Nokia challenging our third-party facility that we reduced energy a great result of 23,800 MWh in must have Energy Star or Electronic suppliers to be best in class for consumption by 564,000 kWh (7%) savings. These positive energy saving Product Environmental Assessment energy consumption and during 2009-2010, resulting in results in 2009 were used as the new Tool (EPEAT) Gold or Silver rating. management, and optimizing the energy cost savings and a reduction baseline for measuring our energy design of our own facilities to of 110 tonnes (3%) in CO2 emissions. performance in 2010, which made Our datacenters demonstrate leadership in energy the target of finding additional As we deliver more applications and Our target is to reduce the energy efficiency. savings with reasonable payback consumption in our factories by 5% services to our consumers around times quite challenging. To ensure we We will continue to work on per manufactured unit annually by the world, we are increasing our continue our energy saving optimizing our Internet infrastructure the end of 2012. In 2009 we were Internet presence and thus need performance in the years to come, to deliver reduced energy ahead of the target. In 2010 we to expand our data infrastructure. and to identify additional, detailed consumption while maintaining our continued working on this target. We recognize that this expansion energy management possibilities, service levels. We continue to Due to a major process change in our represents an increasing share of during 2010 we decided to start challenge our facility suppliers to factories last year which affects the our total energy consumption across using a new computer managed deliver the most energy-efficient target calculation method, we can’t Nokia, but we are focused on being maintenance system (CMMS) tool components with minimal embedded yet compare our 2010 consumption as efficient as possible. It will be an in the first factories before summer carbon. We expect our suppliers to directly with previous years. We’re ongoing challenge to balance 2011. To complement the CMMS, be as passionate about carbon working to clarify the situation to keep our business performance with the we are also undertaking pilots on reduction as we are and we consider our internal target setting resulting carbon impact. detailed energy metering in early their impact just as important as our meaningful. Nokia will continue to make strategic 2011. Once these tools are fully own impact. datacenter investments to support In 2010 we continued our implemented, we expect to see new business and markets as With this focus in mind, we intend Manufacturing Improvement Project, higher energy savings levels again. responsibly as we can. We believe that to make tactical investments in our which started in 2007–2008 with the concept of ‘Datacenter own facilities to improve our ability energy audits of our factories and Sustainability’ should be a real to measure energy consumption, continued in 2009 in our Komarom, business goal and we will use this as well as to upgrade the key facility Chennai, Dongguan and Beijing principle to drive our datacenter components to deliver better energy factories. Last year we expanded portfolio forward while actively efficiency. the project to cover eight factories, managing our carbon impact. We also Our factories covering all regions: APAC-China, strive to bring all of the data center We have set energy reduction targets Europe and the Americas. By making stakeholders together to root out for our factories since 2008. The energy efficient investments (e.g. energy waste in the facilities, the project is part of a holistic approach in lighting) and by optimizing technical infrastructure and the to optimize not only energy building management systems applications. consumption, but also maintenance (e.g. to take advantage of favorable costs and risks. Through our Manufac- weather conditions), altogether turing Improvement Project we drive these factories saved around energy efficiency progress across 4,600 MWh of energy, reducing CO2 all of our factories. emissions by 540 tonnes. Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 81
— 4.2.3 — Green energy purchasing
We have been increasing our green Our progress in 2010 electricity purchasing since 2006, and in 2010 the share was 196 GWh, Green electricity purchasing In 2010, we were buying renewable which is equal to 36%. We focus on Slower than expected development electricity certificates for 100% deploying these purchases in Nokia of renewable energy markets of our consumption in the United operating countries where using was one of our key challenges this States (Green-e wind), Canada renewable energy can make the year. In our first climate strategy (EcoLogo certified biomass), Finland biggest impact on carbon savings. published in 2006, our original and Denmark (RES-E Guarantee This impact depends on how carbon- target was to increase green of Origin hydro power), France intensive the local power generation electricity purchases from 25% of (RECS) and in big office and R&D industry is and, to a large extent, our total electricity consumption sites in Germany (hydro power). where green energy is available. in 2007 to 50% in 2010. In our From April 2010 onwards, we NAVTEQ premises have so far not 2008 strategy update we purchased electricity produced been included in our green energy integrated this target into a broader with mixed renewables for our purchasing strategy. goal to reduce our carbon emissions factory in Hungary and covered by 18%. We achieved this emissions a quarter of our Australia office reduction target through energy consumption by Green Power. efficiency measures and renewable NAVTEQ premises have so far not RENEWABLE ENERGY electricity purchases as much as been included in our green energy possible. We also supported the purchase strategy. Altogether, the target with a Gold Standard certified purchased 196,100 MWh of renewable energy project in China renewable energy certificates (below). In 2010 the share of reduced our CO2 emissions by renewable energy was 196 GWh, 60,100 tonnes. equivalent to 36% of our total electricity consumption. Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 82
— 4.2.3 — Green energy purchasinG (CONT.)
Energy consumption
KEY GWH ENERGY KWH/M2 green Energy brown Energy other Energy 700 700 total Energy/m2
CASE STUDY
600 600 Supporting wind energy projects in China This year, we offset 32,500 tonnes of carbon by supporting Gold Standard- certified renewable energy projects in 500 500 China. The Gold Standard Foundation is a non-profit organization under Swiss law that operates a certification scheme for premium quality carbon credits. Supporters
400 400 of the Gold Standard are committed to promoting sustainable development through carbon offset markets that are characterized by transparency and equality of access for all market participants. 300 300 Gold Standard guarantees, that the greenhouse gas emission reduction has been created according to the strict Gold Standard certificate criteria, the 200 200 process has been supervised properly and emission balance calculations have been audited by independent specialists. Gold Standard-certified projects also 100 100 take into account social aspects of the local environment. We supported two wind farm projects in Northern China, Hebei Shangyi Manjing 2006 2007 2008 2009 2010 and Gansu Anxi, which started in 2008 and 2007, respectively. Both project sites have abundant wind resources and contribute to China’s wider goal of bringing renewable energy markets to scale. The projects In 2010, the share of renewable energy was 36% of our total electricity consumption, which means also help improve air quality and local one percent increase to 2009. The total energy and electricity consumption stayed in the same level livelihoods for the surrounding communities. as in 2009, despite increased production volumes. Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 83
— 4.2.4 — Green logistics
Minimizing emissions Over the past few years, we have development activities undertaken We aim to use ocean transport made a significant effort to in 2010, we estimate that due to instead of air wherever possible, estimate emissions from increasing use of long distance air taking into account the need to transportation by gathering raw transportation in customer protect quality and ensure data from our logistics service shipments the figure for 2010 availability. We have achieved an providers. This process is would be slightly higher than the estimated 80% reduction in CO2 challenging, due to the lack of figure for 2009. Based on our emissions when shifting standardization for measuring estimation it would be about 3.5 kg transportation from air to ocean. carbon footprints in the logistics of CO2 per sales unit. The share of ocean transportation industry. The interconnected, out of total component We are also working on ways to extensive reach of the logistics transportation was about 11% in streamline logistics and reduce our network also complicates efforts impact through packaging 2010. by individual service providers to efficiency, in-transport packaging We define logistics to include measure their own emissions. CREAting a smaller sales package transport from component efficiency, alternative Our new compact package can manufacturers to Nokia sites Based on the data collected, the transportation modes and reduce CO2 emissions from (inbound), transportation of estimated CO2 emissions were engagement with consumers. transportation by 20- 40% finished products from the Nokia 3.06 kg of CO2 per sales unit in compared to our previous 2009. We are now working with our manufacturing sites to the SUPPLY package.CHAIN customers (outbound), and care logistics service providers to refine logistics for repair, reuse and our data collection process and recycling. Logistics is estimated at internally integrate emissions into 11% of the total energy existing logistics processes. This consumption of one of our mobile represents a significant step devices during its life cycle. As towards more reliable data and full logistics operations are conducted traceability of figures. Our new by third-party operators, the approach will fully align with the emissions from logistics belong to anticipated GHG protocol for GHG scope 3 (indirect impact for scope 3 emissions. Nokia). The year 2010 has thus been a Our approach to green logistics transition period during which we has two parts: measuring and have moved onto a second minimizing. Managing emissions development phase of CO2 from logistics depends on our calculation and data gathering ability to track emissions across from logistics service providers the entire logistics network, taking system wise, which means that the into account other initiatives in our basis for our calculations will sustainability strategy which may change. Therefore, before the have an influence. Nokia developed transformation is complete, we a method for calculating our cannot calculate the CO2 emissions emissions in 2008 that aligns with for 2010 logistics. However, the GHG Protocol and has been despite all packaging efficiency externally validated in 2009 and 2010. Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 84
— 4.2.4 — Green logistics (CONT.)
Increasing transportation packaging efficiency During 2010, we have been undertaking an extensive project to increase efficiency at Nokia factories. Optimizing the size of our deliveries through consolidation helps reduce our impact, translating into a smaller carbon footprint for the transpor- tation of each sales package. Since the end of 2009, these transportation efficiencies have enabled us to EMPLOYEE WORK CONDITIONSachieve 12% reduction in emissions from transportation and packaging.
Measuring our impact Our internal target for reducing emissions from logistics is to achieve a 20% reduction per sales unit by 2012 (2008 baseline). Our operator customers have their own emission reduction targets for carbon and other GHG emissions. Our objective is to support them in their sustainability agenda as much as possible, by taking actions at Nokia end and by working together with the customer to generate new ideas. Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 85
— 4.2.5 — Travel, commuting and car fleet
Air travel Since 2008, Nokia has taken a stricter approach to business travelling. Travel reduction efforts in 2008-2009 included a new travel policy, travel awareness campaigns and improved availability of videoconferencing facilities globally. In 2010, these activities were followed by direct co2 emissions From air travel travel consultancy to Nokia business Tonnes units on better ways of working, with the aim of reducing both costs and emissions. 200 000 As a result, Nokia’s CO2 emissions from air travel have been reduced by 40% from 2008 base level. CO2 emissions from air travel were 75,893 tonnes in 2010, which is 2.8% 150 000 more than in 2009. In 2010, the number of flights actually decreased, but average flight distance increased which resulted in increased emissions. The emissions figure covers 95% of Nokia’s (excluding NAVTEQ) air 100 000 travel and has been calculated with a conservative interpretation of GHG Protocol emission factors. Based on travel data collected by NAVTEQ, it would account for 50 000 approximately 9% of Nokia’s travel globally. We also continued a voluntary carbon offset scheme for Nokia business flights. After a trip, the traveler can pay to offset the associated CO2 2007 2008 2009 2010 emissions and Nokia will reimburse KEY the cost. The payments will help to CO2 Emissions fund a balanced portfolio of projects Nokia’s CO2 emissions from air travel have been reduced by 40% from 2008 base level. around the world that focus CO2 emissions from air travel were 75,893 tons in 2010, which is 2.8% more than in 2009. on renewable energy and energy In 2010 the number of flights actually decreased, but average flight distance increased efficiency. Nokia prefers organizations which resulted in increased emissions. The emissions figure covers 95% of Nokia’s which are able to provide Gold (excluding NAVTEQ) air travel and has been calculated with a conservative interpretation Standard-certified offsets. of GHG Protocol emission factors. Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 86
— 4.2.5 — Travel, commuting and car fleet (CONT.)
Leasing cars and employee Managing NAVTEQ’s car fleet commuting at Nokia Finland impact Nokia Finland introduced a new Nokia Finland supports public To ensure the accuracy of its map environmentally friendly car leasing transportation for employee database, NAVTEQ has more than policy in January 2008. The policy commuting. Approximately 1,000 1,100 geographic analysts promotes cars with emissions less employees were using the benefit strategically located around the than 180g/km. Before the new during 2010. world. NAVTEQ’s car fleet is used policy, 55% of Nokia Finland’s cars by these geographic analysts who In 2010, Nokia conducted an met the emissions criteria and actually drive the roads, collecting, employee commuting survey in order average emissions per vehicle were verifying and updating information to calculate the corresponding CO2 179 g/km. By the end of 2010, 98% in the NAVTEQ map database. emissions. The following information of Nokia Finland’s leased cars had was required: country, how many NAVTEQ’s CO2 emissions from emissions less than 180 g/km and days one works at the office/home, map building driving activities were average emissions for the entire commuting distance, time and 4,100 tonnes in 2010, an increase car fleet were 153 g/km. Average means of transport. 3,455 employees of 33% compared to 2009. The CO2 emissions for cars leased in 2010 CONFERENCE CALLS participated in the survey from 58 difference was largely due to a rise were 142 g/km. countries. The emissions were in driving activity to increase map then extrapolated to correspond coverage in Latin America, Eastern with all Nokia’s employees and, as Europe, Africa and Asia. Calculation a result, the emissions of Nokia’s of the emissions from cars is employee commuting were 74,600 based on the distance driven and tonnes of CO2. vehicle-specific conversion factors. Where exact car models were not available, an average of vehicle fleet emissions has been used. Since the onset of its tracking activities in 2002, NAVTEQ has taken the voluntary step of increasing the use of fuel-efficient electric hybrid cars (in North America) as well as directly offsetting its driving-related carbon emissions by contributing to the conservation of rainforest and biodiversity in Madagascar and reforestation in China’s Yunnan province, carried out by Conserva- tion International. Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 87
— 4.2.6 — Reducing waste
Non-hazardous packaging waste We have set a target to reduce waste Our progress in 2010 from our factories and offices is sent to landfill from our factories the biggest percentage of our total by half annually, starting from 2008. In 2010, we managed to continue waste, and we monitor with detailed This will lead us close to 100% waste our decreasing trend of waste reporting the amounts of both utilization by the end of 2012. ending to landfill. Nokia (including hazardous and non-hazardous waste Most of the waste sent to landfill NAVTEQ) caused 59,800 tonnes from our factories. Our goal is to is from the support functions, such of waste in 2010. Out of this, 90% reduce all waste to a minimum and as canteens, in countries where was reused or recycled, energy find alternative ways to reuse it, there is no infrastructure for was recovered from 4%, and especially waste destined for landfills. biowaste handling or energy only 6% went for final disposal, This goal extends to waste produced recovery for mixed municipal waste. i.e. either for landfill or was in Nokia workplaces, including offices, Our factories segregate waste across incinerated without energy factories and R&D facilities. over 20 categories. Three-quarters recovery. of factory waste comes from cardboard, Six out of ten factories have plastics and wood from packaging. already reached 100% waste The majority of the remaining 25% utilization rate or are within 1% comes from paper, biowaste and of reaching the target. The key electronic waste. Less than 1% of challenges to reaching our targets the total mass is hazardous waste, are a lack of effective local waste which includes solvent waste and management infrastructure cleaning rags contaminated with and functioning segregation chemicals, batteries and mainten- of the different kinds of waste. ance-related waste, like oil and fluorescent lamps. There were no significant spills Waste in 2010 from Nokia facilities in 2010. 90% Reused or recycled 4% energy recovered from 6% final disposal Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 88
— 4.2.6 — Reducing waste (CONT.)
Volatile organic compounds (VOCs) Our progress in 2010 Nokia releases some Volatile Organic Factory highlights RAIsing awareness in our offices Compounds (VOCs) during our Our Masan factory in Korea became We believe each and every one of assembly process. VOC emissions the first factory to achieve our us has an important role to play arise from use of solvents in the 100% waste utilization target. This in helping to close the loop soldering and cleaning processes. was achieved by improving waste on workplace waste. In 2010, we The increase of the VOC emissions segregation methods through launched a campaign, “Let’s Talk between 2008 and 2009 was due better infrastructure and raising Rubbish”, across Nokia to promote to more accurate reporting and awareness during 2010. recycling, and encourage the correct changes in production process. sorting of waste at the offices. Between 2009 and 2010 the emission In our factories in Beijing and the level stayed flat. United Kingdom, we optimized The campaign covered dozens the waste management process of our offices and R&D sites around Ozone-depleting substances (ODS) by working collaboratively. Our the world. We used the campaign Ozone depleting substances are not Beijing factory is located in an to promote sorting in canteens, used in our products or production. industrial park alongside several break rooms and individual desks, Nokia facilities use some HCFC and of our suppliers. This gave us the and showed steps everyone could HFC types of refrigerants in cooling ability to streamline the use of take to be more efficient. In Finland, and air conditioning systems only. packaging materials used in we asked our employees to bring These systems are sealed and care transportation between suppliers obsolete e-waste from their homes, is taken to prevent leaks during and our production. We reused garages and attics into the office operations and maintenance, but more than 3,000 tonnes of plastic for recycling during specific some trace amounts are evaporating trays (used for component campaign days. Involving our from all the systems and the amount transports), instead of recycling employees in the campaign has also of annual emissions vary due to trays after only one usage. been successful in our U.S. main changing refill needs. Legislation offices over the past few years around refrigerants is followed and In our factory in Chennai, India, during “America Recycles Day” as with other companies, we would we ran a “Love food, Hate waste” in November, and that tradition like to see market development of campaign during the second half continued in 2010. refrigerants friendly for both the of 2010 to raise awareness. ozone layer and climate. Through this campaign we achieved a 15% reduction in food waste. At our factories in Reynosa, Mexico and Komarom, Hungary we concentrated on reducing communal, or mixed waste by eliminating disposable dishes at canteens and separating the collection of plastic drinking bottles, cans and certain biowaste fractions. Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 89
— 4.2.6 — Reducing waste (CONT.)
waste utilization
Tonnes G/DEVICE
60 000 150
50 000 125
40 000 100
30 000 75
20 000 50
10 000 25
2006 2007 2008 2009 2010 KEY utilised waste Non-utilised waste Waste/Mobile Device In 2010, only 6% of Nokia waste ended to landfill or incineration, meaning that we managed to continue our increasing trend of waste utilization. Our total waste amount on the other hand increased by 12% between 2009 and 2010, which is more than the production volumes increased. Incoming packaging waste from our factories is the biggest percentage of our total waste. This is the area where we are concentrating to find ways to reduce also the total waste amounts. Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 90
— 4.2.7 — wateR usage
Although our own water consumption is small, water Withdrawal we continue to monitor our usage throughout
THOUSANDS m3 M3/EMPLOYEE our operations. Most of our water use occurs for sanitary and catering purposes, and to a smaller extent in gardening and facilities management, such as cooling towers. Our 1600 40.0 production processes do not consume water.
OUR PROGRESS IN 2010
1400 35.0 In 2010, Nokia withdrew 1,422,000 m3 water for use in facilities, out of which 95% was withdrawn from municipal, and 5% from ground water sources. Of the 1200 30.0 water used, 12% was recycled, 69% of waste water went for municipal off-site water treatment and the rest was treated
1000 25.0 on-site. As some of our sites are in water-scarce areas, we plan to set appropriate local targets as part of Nokia’s water strategy 800 20.0 creation in 2011.
Factory highlight At our factory in Chennai, India we have 600 15.0 pioneered the use of recycled “grey water” for toilet flushing. One- third of the plant water is recycled, thanks to the “Zero Discharge Concept” on which the 400 10.0 operations are designed. The common sewage treatment plant, which was developed by Nokia, treats the water to 200 5.0 surface discharge standards, as prescribed by the local regulations and the treated water is used for toilet flushing of all units in the Park. The total garden area of about 2006 2007 2008 2009 2010 8.5 hectares is maintained with treated water.
Water at Nokia facilities is mainly used for sanitary and catering purposes, and to a smaller extent in gardening and maintenance, such as cooling towers. Production processes do not consume water. KEY Withdrawal amount increased 6% between 2009 and 2010 but use per employee has a decreasing Water Withdrawal trend. In 2010, 12% of water was recycled on site. Water/Employee Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 91
— 4.2.8 — Protecting biodiversity
Our greatest biodiversity impact takes place in our supply chain. “WWF and Nokia have had a global partnership in place since During raw material extraction and 2003. Over the years, we have been working together in conserving component manufacturing, some of the earth’s biodiversity as well as slowing down the growth of our activities can cause hydrological humanity’s ecological footprint by increasing consumers’ environmental changes and pollution if not handled awareness (e.g. by campaigning for the take-back of old devices and by properly. mobile content such as the footprint calculator). During the current cooperation, Nokia contributes to our Himalayas conservation project, Nokia aims to reduce its environmental OUR PROGRESS IN 2010 aiming at 9 million hectares of protected forests. An exciting area of impact in all product life cycle phases present cooperation is the use of mobile technologies as enablers in through different activities described Taking voluntary action in our factories field projects. In addition new solutions are being developed in order in other parts of this report. Our Our owned factory in Manaus, to promote consumers to more sustainable lifestyles.” current focus relating to biodiversity Brazil is located close to a non- is on identifying the water and forest protected, albeit high biodiver- related impacts in our value chain, and sity area. We are following local preparing action plans for reducing requirements closely and taking them. voluntary action to avoid nega- Working in partnership tive impacts on local biodiversity. Nokia cooperates with NGOs on Our leased R&D site in Vancou- biodiversity issues, and supports ver, British Columbia is located in different nature conservation an area protected by the Federal programs. These include water provincial government under a management projects in Nepal, “land, wetlands, and animals” India and China; tiger protection –program. in India; Baltic Sea and Staimaa Joining the Save our Species seal protection in Finland and initiative climate adaptation project in Brazil. Launched at the Convention on Biological Diversity (COP10) in Nagoya, ‘Save our Species’ is a global response to the challenge of biodiversity loss. It aims to bring together financial support from private business with inter- national conservation expertise and cooperation from countries Liisa Rohweder, facing species extinction. Nokia General Secretary, WWF Finland is proud to be the first company to join the initiative. Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 92
— 4.3 — Suppliers
Supplier requirements Our supply chain is long and complex Our comprehensive set of Nokia and we have thousands of direct and Supplier Requirements provides indirect suppliers. This gives us a great clear guidance on what is expected responsibility and we are commit- from our suppliers. Our aim with ted to ensuring that the highest the Nokia Supplier Requirements is standard of environmental and social to ensure that our suppliers provide responsibility is exercised. Some safe working conditions, exercise suppliers are more advanced than good labor practices, use environ- others in managing their operations mentally friendly manufacturing sustainably, which means our processes and aim to reduce approach needs to meet different the environmental impact of their needs and build capacity over time. own operations. SNAPSHOT 2010 It is a challenge that requires continuous improvements and Capacity building 31 supplier system assessments were conducted cannot be achieved alone. Our approach to working with suppliers is not just focused 93% of our direct hardware suppliers have a Code of Conduct To achieve our commitment, we on assessments. We believe that policy in place that meets our requirements promote environmental, ethical remaining engaged with suppliers 72% of our hardware suppliers that account for the highest and social sound principles across and providing support is the best environmental impact or are strategically important to us had the supply chain. For us, sustain- way to help them improve their company- level reduction targets for energy, greenhouse gas able practices are not separate long-term performance. To drive emissions, water and waste in place and monitored add-on features, but they are sustainable change, we combine 87% of suppliers reported satisfaction with Nokia’s approach to embedded in everything we do, different approaches including corporate responsibility including supplier selection and face-to-face meetings, development four new metrics related to health, safety and labor issues relationship development. We programs, training, performance introduced and piloted with eight suppliers believe that open communication, metrics and targets, and supplier- Our first Supplier Sustainability Award was established in 2010 good relationships and transparency focused events. as part of our commitment to working with suppliers to build their are among the key success factors, capacity and therefore work closely with not only our suppliers, but also industry peers and other stakeholders. Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 93
— 4.3.1 — Supplier requirements
Nokia Supplier Requirements Our comprehensive set of Nokia All new Nokia suppliers must conduct OUR ASSESSMENT PROGRESS IN 2010 Supplier Requirements provides a self-assessment using E-TASC, clear guidance on what we expect which is a web-based information During 2010, the average result from our suppliers. These require- management system that helps of 26 suppliers’ self-assess- ments include environmental and companies throughout the supply ments indicates a corporate- social expectations, which are based chain manage, and analyze social and level score of 89.7% and on international standards such as environmental responsibility data. It facility-level score of 89.9%, ISO 14001, SA 8000, OHSAS18001, was developed as a joint effort of where a lower percentage score as well as PCMM, ILO and UN the Global e-Sustainability Initiative indicates a higher risk that the conventions. The Nokia Supplier (GeSi) and the Electronic Industry supplier is falling short of Requirements are part of the Citizenship Coalition (EICC) and is expectations and standards. contractual agreement with used across our industry. In 2010, we also conducted 31 suppliers and accordingly all Nokia In addition to the self-assessments, system assessments and six in- suppliers must follow them Nokia conducts two types of on-site depth assessments. In areas regardless of location or size. assessments. The aim with our where risks were identified, Our aim with these requirements is regular system assessments is to suppliers have been requested to ensure that our suppliers provide monitor compliance with the Nokia to take corrective actions and safe working conditions, use environ- Supplier Requirements. These we follow up on their improve- mentally friendly manufacturing involve a review of the supplier’s ments. In the area of human processes and contribute to complete processes and manage- rights 41% of our significant reducing the environmental impact ment system against the Nokia suppliers had undergone of our own operations. More Supplier Requirements. All new screening. information on the environmental suppliers must undergo a system Retail supplier criteria impact of our own operations. More assessment together with suppliers This year we also renewed our information on the environmental who have undergone significant retail supplier base partly impact of our own operations. More organizational changes and those based on sustainability criteria. information on the environmental considered to be at highest risk of Suppliers were requested to fill and social supplier requirements can non-compliance or with strong need in self-assessments, and be found from our website. of development. Key suppliers are certain suppliers were visited generally assessed every two years. Supplier assessments based on the results. We To monitor supplier performance The second type of on-site continue to address sustain- against our requirements and assessment is called an in-depth ability in regular supplier promote sustainability improve- assessment. This provides an meetings. ments, we conduct supplier opportunity for more insight into self-assessments and on-site how a supplier is managing and assessments. performing against the ethics, environment, labor and health and safety requirements defined in the Nokia Supplier Requirements. Suppliers undergo in-depth assessments for a variety of reasons, including identified risk, non-conformance or strategic importance. Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 94
— 4.3.1 — Supplier requirements (CONT.)
Supplier performance metrics OUR PROGRESS IN 2010 As well as driving performance improvements through our Reduction of requirements and assessments, Code of Conduct environmental impact we also work to drive improvements For 2010, we set as a target to During 2010, 71.9% of our through performance metrics and have visibility of the Code of hardware suppliers that account target setting. These metrics relate Conduct policy of all of our for the highest environmental both to environmental and social direct hardware suppliers. We impact or are strategically aspects and help us to follow up found that 92.9% met our important to us, had company- on how our suppliers are managing requirements. Suppliers not level reduction targets for and provide them support on how meeting our expectations have energy, carbon dioxide to go further. been requested to take (equivalent), water and waste in corrective actions. place and monitored. In 2011, One of the performance metrics we plan to extend this scope we follow is the Code of Conduct Environmental management systems further to drive continuous policy, which is also part of the We require suppliers to have improvement. We would like to NSR. The Code of Conduct covers Environmental Management see that all of our suppliers key sustainability topics including Systems in place. In 2010, 91.7% have reduction targets in place corruption, general business of our direct hardware in the longer term. routines, health and safety, human rights, working conditions, suppliers’ sites serving Nokia Introducing new health and were certified to ISO 14001. safety metrics social rights and environmental In 2010, we also introduced four standards. Our other supplier new metrics related to health, performance metrics relate to the safety and labor issues. With environmental impact of supplier these metrics we want to get a operations, environmental deeper understanding on the management systems, corporate labor conditions of our responsibility reporting and suppliers. The metrics concern health, safety and labor issues. occupational injuries, employee attrition, absence rate due to sick leave and overall employee satisfaction. We piloted the metrics with 8 identified priority suppliers in 2010, and during 2011 our aim is to start a more comprehensive implementation of the metrics. Nokia sustainability report 2010 4 PROGRESS IN DETAIL: Operations 95
— 4.3.2 — Capacity building
Helping every supplier become more sustainable OUR PROGRESS IN 2010 Openness and trust are important One of the most common findings aspects when working together in our on-site assessments has been Supporting better labor practices with suppliers and driving compliance related to the way our suppliers Our first supplier award During 2010, we saw an encour- and performance improvements. manage overtime hours of their We have noticed that a lot of aging example of a holistic We find that some suppliers have employees. We have found that publicity and media attention is approach to labor conditions well-developed corporate finding a real solution often requires directed towards the challenges from one of our suppliers based responsibility programs, while long-term development. We support of the supply chain. However, in China. They made significant others need more support. In the our suppliers in striving towards during the past few years we progress by taking the following coming years, we will take an even such lasting improvements by have seen suppliers that have actions: made significant progress in more active role to ensure helping them analyze the adequacy c arrying out a thorough progress towards sustainability. of their corrective actions, offering their environmental or social performance. We see our role analysis of possible causes benchmarking with our internal of excess overtime human resources practices and as not only supporting those suppliers that still need to i ntroducing a new overtime consultancy with our in-house subject control guideline and targets matter experts as necessary. It is improve their performance, but also to encourage those that i ntroducing a new system an approach that requires a to identify manpower needs strong commitment on both sides, have already made progress. During 2010, we therefore gave Recruiting additional man- but we believe it is the best way to power to fulfill the business create lasting change for the better. our first supplier sustainability award. This is a practice we will needs within the limits of new We also conduct an annual supplier continue in the coming years. overtime targets satisfaction survey to get feedback providing on-the-job training on our approach and way of working to improve efficiency from our suppliers. The results of c reating a new work shift the survey reflect how we perform pattern on topics such as planning and Improving supplier satisfaction relationship management and The results of our supplier whether other business expecta- satisfaction survey showed that tions force suppliers to compromise in 2010, on average, the on their environmental and ethical respondents gave an overall rating level of compliance. for doing business with Nokia as 80% on a scale where 0% represents an unacceptable level and 100% represents an excellent level. Furthermore, on average 87% of respondents were satisfied with Nokia’s overall approach to corporate responsibility. Nokia sustainability report 2010
— 5.0 — GOVERNANCE Nokia sustainability report 2010 5 GOVERNANCE 97
— 5.0 — — 5.1 — governance Sustainability governance
Governance structure Like sustainability itself, sustainability governance takes place throughout All shareholders have the right to The Corporate Responsibility Nokia’s business. From the CEO’s address at the Annual General Meeting to submit agenda items or proposals Steering Group is made up of top the people tasked with putting our strategy into action across all our key to the agenda of our Annual General managers of business units and business functions. Meeting (AGM) provided that the item corporate functions. It supports or proposal belongs to the scope of our corporate structures in helping Our approach is based on integrating responsibility for sustainability into the general meeting of the sharehold- integrate sustainability into our core the way everyone at Nokia works. Our values, rigorous governance framework, ers), and the request is made to the business, for instance through appro- Code of Conduct, risk management process and commitment to customer Board in writing well in advance to be ving the work of the Nokia Sustain- privacy sit at the heart of ensuring that sustainability is a part of included in the notice of the meeting. ability Management Team (NSMT). everything we do. All the directors attended Nokia’s The NSMT represents all relevant Annual General Meeting held on Nokia units, develops and agrees May 6, 2010. The Finnish Corporate the group-wide sustainability Governance Code recommends framework containing strategy, attendance by the Board Chairman targets and priorities. and a sufficient number of directors Our sustainability network acts as a to allow the shareholders to exercise virtual team across the organization their right to present questions and is led by Kirsi Sormunen, Vice to the Board and management. President, Head of Sustainability In recent years, sustainability related Operations. Our sustainability teams questions have been discussed drive sustainability initiatives within in AGM. During 2010, our Board of the business and monitor perfor- Directors reviewed sustainability mance across our operations. and related topics in their meetings. Each of the key business functions The Nokia Leadership Team has people responsible for building (called the Group Executive Board until and implementing processes to February 11, 2011) approves sustain- achieve our environmental and ability and related Key Performance social targets. Our sustainability Indicators as part of our strategic framework provides guidelines on planning process. Esko Aho, Executive embedding sustainability strategy Vice President, Corporate Relations within our operational planning and Responsibility, leads our sustain- across the business. ability activities at the Nokia Leader- ship Team level. He oversees the work of the Corporate Responsibility Steering Group, which is responsible for supporting sustainability initiatives across the business and encourag- ing open communication and cooper- ation, both internally and externally. If needed, major issues are escalated to the Leadership Team. Nokia sustainability report 2010 5 GOVERNANCE 98
— 5.2 — — 5.3 — Managing risks and opportunities Regulatory compliance
Risk management Opportunities Our overall risk management Our innovations hold the potential such as remote working and video Nokia wants to ensure that it complies concept aims to increase visibility for changing the way we live, from conferencing can result in lower with the laws and regulations set by of the key risks that could prevent improving livelihoods to embrac- overall CO2 emissions. In addition, the each market’s individual regulatory us from reaching our business ing more sustainable lifestyles. environmental gains from substi- bodies. Typically, our requirements objectives. This covers strategic, More than a billion people use Nokia tuting a service for hard product, meet or go beyond the strictest operational, financial and hazard mobile devices, and we believe that also known as dematerialization, stipulations set by any regulations in risks. Within these categories we even small changes can make a can be significant. Convergence, the world and are rooted in our global monitor political, social, human big difference, for example in the or incorporating the functionali- standards and requirements. Against rights, and environmental risks. protection of our environment. ties of several products into one, this baseline, it is not surprising that, Our vision is to further realize the can further contribute to demat- for example, our environmental targets The principles set out in our risk potential of mobility by extending erialization and energy efficiency. go way beyond regulatory compliance. policy and accepted by the Board’s access to mobile communications. Audit Committee require risk As well as exploring direct There were no significant fines or Sustainability is part of our business management to be integrated business opportunities, we have non-monetary sanctions for non- strategy and we systematically into our business processes. started research to help us better compliance with laws and regulations analyze sustainability related One of the main principles is that understand and make the most of during 2010. opportunities. In this report, we the business, function or category the impacts of mobility. There is present a wide range of examples There were no legal actions against owner is also the risk owner, along plenty of macroeconomic data, where our work is enhancing access- Nokia for anti-competitive behavior, with risk specialists. We believe it anecdotal evidence and common ibility, education delivery, data anti-trust or monopoly practices in is everyone’s responsibility at Nokia sense to suggest that mobility gathering, materials and substances, 2010. Nokia does not contribute to to identify risks. benefits societies in many ways. and the energy efficiency of products, political parties or politicians. Mobility also has benefits that are Risk analysis covers both probability as well as of various environmental over and above the generic and impact of risks, as well as the services we offer customers benefits of ICT. Yet the full ways of mitigating them. In the through mobile devices. We also consequences of mobility are area of corporate responsibility, we cover our improvement in our own yet to be discovered. follow the precautionary principle, operations, such as packaging, Political, social and business especially in the areas involving logistics and supply chain and our processes, for instance, are environmental risks. Sustainability ways of working. Nokia Siemens rapidly changing because of the related risks in areas such as Networks’ corporate responsibility increased mobility of communica- products, supply chain and climate report has more examples of tion. When 4.5 billion people use change are all analyzed with our risk how mobile technology can make mobile phones every day, the management process. Related a difference. sheer magnitude of this phenom- activities are monitored at least twice One widely discussed topic is the enon must profoundly change the a year by our sustainability manage role of information and commu- fabric of society. ment team and escalated further nications technology (ICT) in the fight if needed. against climate change. There is The most material risk factors as well good evidence that ICT makes a as the principal factors and trends major contribution to GDP growth affecting our results of operations while also helping to reduce energy are discussed in our publicly available use in various industries, slowing Annual Report on Form 20-F. down global warming. ICT-based services and working methods Nokia sustainability report 2010
— 6.0 — REPORTING APPROACH
WWF ECO GURU Nokia sustainability report 2010 6 Reporting approach 100
— 6.1 — — 6.2 — Integrated Reporting Materiality analysis
As sustainability matters are not For quick reference, we have listed Our 2010 report highlights Nokia’s Assurance separate from other key corporate below some other key sources performance in the areas where PricewaterhouseCoopers Oy information, we have also integrated of Nokia sustainability information: business practices most affect society (PwC) has provided assurance key sustainability related data into and the environment. It covers on selected Nokia Corporation’s Nokia Form 20-F 2010 our annual report on Form 20-F for the key ethical, socio-economic and Corporate Responsibility 2010, which has been filed with the third party assurance report environmental areas we believe are information included in this United States Securities and by PricewaterhouseCoopers Oy. most material to our business and report. We have worked closely Exchange Commission. our stakeholders. For the most with PwC using their assurance g lobal Reporting Initiative (GRI) material issues, see especially the findings as feedback to develop During 2010, key sustainability issues guidelines with references Summary section 1.3. our approach. have also been reported in the to Nokia’s sustainability report Operating highlights section of Nokia’s to ease compatibility with other Our materiality identification Global eSustainability quarterly results and in various press organizations. process – and selection of topics to Initiative (GeSI) materiality analysis releases throughout the year. this report - is based on a carbon Disclosure Project Nokia participated in the GeSI combination of factors: Details on our financial performance web site that provides detailed materiality analysis. The initiative are published in quarterly results information on Nokia’s climate Our experience aims to define areas where the releases, in our Form 20-F, and change related activities and Our long legacy and experience ICT sector can make the greatest Nokia’s Annual Accounts, which are performance. working on sustainability issues contribution to stakeholder available at our website. gives us guidance on material engagement. Using a combination Nokia Siemens Networks’ issues. We also take into account of stakeholder and company Sustainability report. public debate and media and interviews, desk research our website that provides more analyst interest in issues. and workshops, GeSI specifically day-to-day information about identifies the issues that could Stakeholder engagement / be considered most material our activities. Partnering We engage with stakeholders to the ICT sector. It ranks these Many of our suppliers also report material issues according to their on their practices on their websites, regularly to understand the issues that are most important to them. “influence on the success of through a corporate responsibility ICT businesses” and “influence report or as a part of their annual See Stakeholder Engagement on stakeholder decision making”. report. During 2010, 66% of our for more information. direct suppliers publicly reported
about corporate responsibility. c orporate risk and opportunity assessment We use risk assessments to help align our approach with our core business, see 5.2 Managing risks and opportunities.
global Reporting Initiative (GRI) We use the GRI guidelines as a foundation for reporting and add issues that are most relevant to Nokia and our industry. See our GRI index table for more information. Nokia sustainability report 2010 6 Reporting approach 101
— 6.3 — UN Global Compact
Nokia is committed to the principles of the United Nations Global Compact and has been a signatory and active member since The Global Compact’s inception. The Global Compact provides a framework for responsible business practices relating to labor, human rights, anti-corruption and environmental issues. The Global Compact is the world’s largest corporate citizenship initiative, with over 8,700 companies belonging to the network. In our 2010 annual report Form 20-F and in this corporate responsibility report, we have sought to review progress on our activities and programs that support the ten principles of the Compact in the area of human rights, labor standards, the environment and working against corruption. Nokia sustainability report 2010 6 Reporting approach 102
— 6.4 — Independent assurance
Selected key corporate responsibility indicators in this report have been assured by an independent third party, PricewaterhouseCoopers Oy (Nokia’s statutory auditor). Their assurance report can be found below:
INDEPENDENT ASSURANCE REPORT
To the Management of Nokia Corporation Waste amounts and treatment (scope: Nokia, NAVTEQ included We have been engaged by the Management of Nokia Corporation to in Nokia). perform a limited assurance engagement on selected Nokia Corporation’s Case studies on GHG reduction impact of Nokia Devices & Services Corporate Responsibility information for the year ending December 31, (scope: Nokia, NAVTEQ included in Nokia). 2010 (hereinafter the “Selected CR information”) included in Nokia RoHS and REACH compliance of products (scope: Nokia). Corporation’s Sustainability Report 2010, as disclosed on Nokia Corporation’s Charger no-load energy consumption (average sold p.a.) website. (scope: Nokia). Air travel emissions (scope: Nokia). The Selected CR information consists of the following performance indicators and other items in the areas of Environment, HR and Supply h r : Scope: All performance indicators cover Nokia. Chain. The scope of the assurance engagement is described below for Employees in production. each area of assurance. In defining the assurance scope, “Nokia Group” Total training cost. consists of Nokia, NAVTEQ and Nokia Siemens Networks. Training cost / employee. Based on this assurance engagement, and in addition to this assurance Injury/illness rate in production. report, PricewaterhouseCoopers Oy has issued a separate assurance Women in senior management. report regarding the assurance scope for Nokia Siemens Networks. Non-Finnish nationalities in senior management.
Environment: Voluntary attrition. Facility related direct and indirect energy consumption and related Supply Chain: greenhouse gas emissions (scope: Nokia Group). Scope: All performance indicators cover Nokia. Indicators in the area Comparison of year 2010 CO2 emissions to base year 2006 emissions of Supply Chain cover Nokia ‘s direct hardware supply chain. (scope: Nokia, NAVTEQ included in Nokia). CO2 emissions in base year Percentage of direct suppliers having certified ISO 14001 system 2006 have originally been assured by Ecofys Germany GmbH, and for in place for sites serving Nokia. that part PricewaterhouseCoopers Oy has relied on their assurance Percentage of suppliers having reduction targets for energy, CO2, work. PricewaterhouseCoopers Oy has performed assurance water, and waste in place and monitored. procedures on base year recalculations. Suppliers’ compliance with Nokia Supplier Requirements: number Green electrical energy portion of total electricity consumption of suppliers under E-TASC and % average supplier E-TASC self (scope: Nokia Group). assessment score. Energy savings in 2010 and 2010 year-end current status against the Suppliers’ compliance with Nokia Supplier Requirements: number cumulative minimum savings target by 2012 (scope: Nokia). Energy of supplier assessments and in-depth assessments. consumption in base year 2006 and energy savings in 2007 have been Supplier Code of Conduct implementation %. assured by Ecofys Germany GmbH, and PricewaterhouseCoopers Supplier Satisfaction Survey results. Oy has relied on their assurance work. Hence no assurance proce- Number of priority suppliers participating in a pilot project on dures have been performed by PricewaterhouseCoopers Oy on these reporting health, safety and labor metrics. amounts. Water usage in facilities (withdrawal amount and source, discharge destination) (scope: Nokia Group). Nokia sustainability report 2010 6 Reporting approach 103
— 6.4 — Independent assurance (cont.)
INDEPENDENT ASSURANCE REPORT continued
Management’s Responsibility The Management of Nokia Corporation is responsible for preparing the Inspecting relevant documents and systems for gathering, analyzing Selected CR information in accordance with the reporting criteria as set and aggregating the Selected CR information as well as performing out in Nokia Corporation’s own documented standards, GHG Protocol, tests on a sample basis. and ISO 14001 standard. Assessing the data consolidation process of the Selected CR
Practitioner’s Responsibility information at Nokia Group level and at Nokia Siemens Networks Our responsibility is to express a conclusion on the Selected CR level.
information based on our work performed. Our assurance report has Conclusion been made in accordance with the terms of our engagement. We do Based on our limited assurance engagement, nothing has come to not accept, or assume responsibility to anyone else, except to Nokia our attention that causes us to believe that the Selected CR information Corporation for our work, for this report, or for the conclusions that we has not been prepared, in all material respects, in accordance with have reached. the reporting criteria. Our assurance report should be read in We conducted our work in accordance with the International Standard conjunction with the inherent limitations of accuracy and completeness on Assurance Engagements (ISAE) 3000 ‘Assurance Engagements Other for corporate responsibility information. This independent assurance than Audits or Reviews of Historical Financial Information’. This Standard report should not be used on its own as a basis for interpreting Nokia requires that we comply with ethical requirements and plan and perform Corporation’s performance in relation to its principles of corporate the assurance engagement to obtain limited assurance whether any responsibility. matters come to our attention that cause us to believe that the Selected Helsinki, June 29, 2011 CR information has not been prepared, in all material respects, in accordance with the reporting criteria. PricewaterhouseCoopers Oy In a limited assurance engagement the evidence-gathering procedures are more limited than in a reasonable assurance engagement, and therefore less assurance is obtained than in a reasonable assurance engagement. An assurance engagement involves performing procedures to obtain evidence about the amounts and other disclosures in the Merja Lindh Selected CR information. The procedures selected depend on the Authorised Public Accountant practitioner’s judgment, including an assessment of the risks of material misstatement of the Selected CR information. Our work consisted of, amongst others, the following procedures:
Conducting interviews with relevant management of Nokia Corporation and Nokia Siemens Networks Oy. Sirpa Juutinen Assessing how Nokia Group employees apply Nokia Corporation’s Partner, Sustainability & Climate Change reporting guidelines and procedures. Visiting Nokia Corporation’s and Nokia Siemens Networks Oy’s Head Offices as well as a sample of seven other sites in China, Germany, Great Britain, Hungary and India. Conducting interviews with employees responsible for collection and reporting of the Selected CR information at Nokia Group and at Nokia Siemens Networks level, as well as at the sites where our visits took place. Nokia sustainability report 2010 6 Reporting approach 104
— 6.5 — Global Reporting Initiative
In compiling the 2010 sustainability report, Nokia used the Global Reporting Initiative’s (GRI) G3 Sustainability Reporting Guidelines. We have disclosed all mandatory indicators as well as additional indicators relevant to Nokia. A third-party GRI Application Level check conducted by a corporate responsibility specialist, Tofuture Oy has confirmed Nokia’s self-declaration that this report meets the requirements for GRI’s Application Level A+. The table below shows where the GRI standard disclosures are addressed in this report. Nokia sustainability report 2010 6 Reporting approach 105
— 6.5.1 — GRI INDEX STANDARD DISCLOSURES PART I: Profile Disclosures
1. Strategy and Analysis
Profile Description Reported Cross-reference/ Page in 20F Comments Disclosure Direct answer 1.1 Statement from the most senior decision-maker Fully 1.1 CEO interview — — of the organization. 1.2 Description of key impacts, risks, Fully Report: 1.3 Nokia’s role — — and opportunities. as part of a solution, 5.2 Managing risks and opportunities
2. Organizational Profile
Profile Description Reported Cross-reference/ Page in 20F Comments Disclosure Direct answer 2.1 Name of the organization. Fully First page — — 2.2 Primary brands, products, and/or services. Fully Report: 1.2 Nokia in 42-52 — 2010; 20F 4B. Business overview 2.3 Operational structure of the organization, Fully Report: 1.2 Nokia in 39-42 — including main divisions, operating companies, 2010; 20F: 4A. History subsidiaries, and joint ventures. and development of the company 2.4 Location of organization’s headquarters. Fully Report: 1.2 Nokia in First page — 2010; 20F 2.5 Number of countries where the organization Fully 20F: 4D. Property, 74-75 — operates, and names of countries with either plants and equipment major operations or that are specifically relevant to the sustainability issues covered in the report. 2.6 Nature of ownership and legal form. Fully 20F: Introduction and 4, 164 — use of certain terms; 7A. Major shareholders 2.7 Markets served (including geographic breakdown, Fully Report: 1.2 Nokia in 100-118 — sectors served, and types of customers/ 2010; 20F: 5A. beneficiaries). Operating results 2.8 Scale of the reporting organization. Fully 20F: Item 4. Information 39 — on the company Nokia sustainability report 2010 6 Reporting approach 106
— 6.5.1 — GRI INDEX STANDARD DISCLOSURES PART I: Profile Disclosures
2. Organizational Profile (cont.)
Profile Description Reported Cross-reference/ Page in 20F Comments Disclosure Direct answer
2.9 Significant changes during the reporting period Fully 20F: 5A. Operating 75, 170 — regarding size, structure, or ownership. results; 8B. Significant changes 2.10 Awards received in the reporting period. Fully Report: 1.5 Key — — achievements and challenges in 2010
3. Report Parameters
Profile Description Reported Cross-reference/ Page in 20F Comments Disclosure Direct answer 3.1 Reporting period (e.g., fiscal/calendar year) for Fully Report: 1.2 Nokia in 2010 — — information provided. 3.2 Date of most recent previous report (if any). Fully Report: 1.2 Nokia in 2010 — — 3.3 Reporting cycle (annual, biennial, etc.) Fully Report: 1.2 Nokia in 2010 — — 3.4 Contact point for questions regarding the report Fully Report: 1.2 Nokia in 2010 — — or its contents. 3.5 Process for defining report content. Fully Report: 6.2 Materiality — — analysis 3.6 Boundary of the report (e.g., countries, divisions, Fully Report: 1.2 Nokia in 2010 — — subsidiaries, leased facilities, joint ventures, (Reporting boundary) suppliers). See GRI Boundary Protocol for further guidance. 3.7 State any specific limitations on the scope Fully Report: 1.2 Nokia in 2010 — — or boundary of the report (see completeness (Reporting boundary) principle for explanation of scope). 3.8 Basis for reporting on joint ventures, subsidiaries, Fully Report: 1.2 Nokia in — — leased facilities, outsourced operations, and 2010 (Reporting other entities that can significantly affect boundary) comparability from period to period and/or between organizations. Nokia sustainability report 2010 6 Reporting approach 107
— 6.5.1 — GRI INDEX STANDARD DISCLOSURES PART I: Profile Disclosures
3. Report Parameters (cont.)
Profile Description Reported Cross-reference/ Page in 20F Comments Disclosure Direct answer 3.9 Data measurement techniques and the bases of Fully Report: 7. Key Data 2010 — — calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols. 3.10 Explanation of the effect of any re-statements Fully Report: 7. Key Data 8 — of information provided in earlier reports, and 2010; 20F: 3A. Selected the reasons for such re-statement (e.g.,mergers/ financial data acquisitions, change of base years/periods, nature of business, measurement methods). 3.11 Significant changes from previous reporting periods Fully Report: 7. Key Data 8 — in the scope, boundary, or measurement methods 2010; 20F: 3A. Selected applied in the report. financial data 3.12 Table identifying the location of the Standard Fully Report: 6.5 Global — — Disclosures in the report. Reporting Initiative; This index 3.13 Policy and current practice with regard to seeking Fully Report: 6.4 — — external assurance for the report. Independent assurance
4. Governance, Commitments, and Engagement
Profile Description Reported Cross-reference/ Page in 20F Comments Disclosure Direct answer 4.1 Governance structure of the organization, including Fully 20F: 6A. Directors and 123 — committees under the highest governance senior management body responsible for specific tasks, such as setting strategy or organizational oversight. 4.2 Indicate whether the Chair of the highest Fully 20F: 6A. Directors and 123 — governance body is also an executive officer. senior management 4.3 For organizations that have a unitary board Fully 20F: 6A. Directors and 123 — structure, state the number of members of the senior management highest governance body that are independent and/or non-executive members Nokia sustainability report 2010 6 Reporting approach 108
— 6.5.1 — GRI INDEX STANDARD DISCLOSURES PART I: Profile Disclosures
4. Governance, Commitments, and Engagement (cont.)
Profile Description Reported Cross-reference/ Page in 20F Comments Disclosure Direct answer 4.4 Mechanisms for shareholders and employees Fully Report: 5.1 — — to provide recommendations or direction to the Sustainability highest governance body. governance 4.5 Linkage between compensation for members of Fully 20F: 6B. Compensation 135 — the highest governance body, senior managers, (Board of Directors) and executives (including departure arrangements), and the organization’s performance (including social and environmental performance). 4.6 Processes in place for the highest governance body Fully 20F: 6C. Board 151 — to ensure conflicts of interest are avoided. practices 4.7 Process for determining the qualifications Fully 20F: 6A. Directors and 123 — and expertise of the members of the highest senior management governance body for guiding the organization’s strategy on economic, environmental, and social topics. 4.8 Internally developed statements of mission or Fully 20F: 4B. Business 65–70 — values, codes of conduct, and principles relevant to overview (Employees, economic, environmental, and social performance Corporate responsibility) and the status of their implementation. 4.9 Procedures of the highest governance body for Fully Report: 5.1 Sustainability 65 — overseeing the organization’s identification and governance; 20F: 4B. management of economic, environmental, and Business overview social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles. 4.10 Processes for evaluating the highest governance Fully 20F: 6B. Compensation 135 — body’s own performance, particularly with respect to (Board of Directors) economic, environmental, and social performance. 4.11 Explanation of whether and how the precautionary Fully Report: 5.2 Managing — — approach or principle is addressed by the risks and opportunities organization.
Nokia sustainability report 2010 6 Reporting approach 109
— 6.5.1 — GRI INDEX STANDARD DISCLOSURES PART I: Profile Disclosures
4. Governance, Commitments, and Engagement (cont.)
Profile Description Reported Cross-reference/ Page in 20F Comments Disclosure Direct answer 4.12 Externally developed economic, environmental, Fully Report: 6.3 Global — — and social charters, principles, or other initiatives Compact to which the organization subscribes or endorses. 4.13 Memberships in associations (such as industry Fully Report: 3.3 — — associations) and/or national/international advocacy Stakeholders; 6.3 Global organizations in which the organization: * Has Compact positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic. 4.14 List of stakeholder groups engaged by the Fully Report: 3.3 Stakeholders — — organization. 4.15 Basis for identification and selection of Fully Report: 3.3 Stakeholders — — stakeholders with whom to engage. 4.16 Approaches to stakeholder engagement, including Fully Report: 3.3 Stakeholders — — frequency of engagement by type and by stakeholder group. 4.17 Key topics and concerns that have been raised Fully Report: 3.3 Stakeholders; — — through stakeholder engagement, and how the 4.3 Suppliers organization has responded to those key topics and concerns, including through its reporting. Nokia sustainability report 2010 6 Reporting approach 110
— 6.5.1 — GRI Index STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMAs)
Disclosure on Management Approach EC
DMA EC Description Reported Cross-reference/ Page in 20F Comments Direct answer
Aspects Economic performance Fully Report: 3.3 Stakehold- — — ers, 5.2 Managing risks and opportunities, 7. Key data 2010; 20F: F-2 -, F-28 Pensions Market presence Fully Report: 3.1.2 Diversity — — and inclusion, 4.3.1 Sup- plier requirements Indirect economic impacts Fully Report: 2.2.1 Applica- — — tions for sustainable lifestyles
Disclosure on Management Approach EC
DMA EN Description Reported Cross-reference/ Page in 20F Comments Direct answer Aspects Materials Partially Report: 2. Progress in — — detail, 2.1 Environmen- tally leading product range, 2.1.2 Substance and materials management, 2.1.3 Packaging, 2.1.4 Sustainable sourcing Energy Fully Report: 4.2.2 Energy — — efficiency; 7. Key Data 2010 Water Fully Report: 7. Key data 2010 — — Biodiversity Fully Report: 4.2.8 Protecting — — biodiversity Emissions, effluents and waste Fully Report: 1.4 Our — — sustainability approach; 2.2 Sustainable
lifestyles; 4.2
Nokia sustainability report 2010 6 Reporting approach 111
— 6.5.1 — GRI Index STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMAs)
Disclosure on Management Approach EC (cont.)
DMA EN Description Reported Cross-reference/ Page in 20F Comments Direct answer
Aspects (Cont.) (Cont.) Environmental impact, — — 4.2.2 Energy efficiency; 4.2.6 Reducing waste, 7. Key Data 2010 Products and services Fully Report: 2.1. — — Environmentally leading product range, 2.1.2 Substance and materials management, 2.4 Take-back and recycling, 4.3.1 Supplier requirements, 7. Key data 2010 Compliance Fully Report: 5.3 Regulatory — — compliance Transport Fully Report: 4.2.4 Green — — logistics, 7. Key Data 2010
Disclosure on Management Approach LA
DMA LA Description Reported Cross-reference/ Page in 20F Comments Direct answer
Aspects Employment Fully Report: 3.1.2 Diversity — — and inclusion, 7. Key data 2010; 20F: 6D. Employees Labor/management relations Fully Report: 3.1.7 Labor — — conditions Occupational health and safety Fully Report: 3.1.5 Health, — — safety and well-being, 3.1.7 Labor conditions, 7. Key data 2010 Nokia sustainability report 2010 6 Reporting approach 112
— 6.5.1 — GRI Index STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMAs)
Disclosure on Management Approach LA (cont.)
DMA LA Description Reported Cross-reference/ Page in 20F Comments Direct answer Aspects Training and education Fully Report: 3.1 Employees, — — 3.1.3 Training & development, 3.1.4 Performance and rewarding, 7. Key data 2010 Diversity and equal opportunity Fully Report: 3.1.2 Diversity — — and inclusion; 3.1.4 Performance and rewarding; 20F: 4B Business overview, Promoting diversity in the workplace
Disclosure on Management Approach HR
DMA HR Description Reported Cross-reference/ Page in 20F Comments Direct answer
Aspects Investment and procurement practices Fully Report: 3.1.7 Labor — — conditions, 3.1.8 Nokia Code of Conduct, 4.3.1 Supplier requirements Non-discrimination Fully Report: 3.1.7 Labor — — conditions Freedom of association and collective bargaining Fully Report: 3.1.7 Labor — — conditions Child labor Fully Report: 3.1.7 Labor — — conditions Forced and compulsory labor Fully Report: 3.1.7 Labor — — conditions Nokia sustainability report 2010 6 Reporting approach 113
— 6.5.1 — GRI Index STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMAs)
Disclosure on Management Approach SO
DMA SO Description Reported Cross-reference/ Page in 20F Comments Direct answer
Aspects Community Fully Report: 2.3 Mobile — — technology for development: Empowering people and organizations Corruption Fully Report: 3.1.7 Labor — — conditions, 3.1.8 Nokia Code of Conduct Public policy Fully Report: 3.3 Stakehold- — — ers, 5.3 Regulatory compliance Anti-competitive behavior Fully Report: 5.3 Regulatory — — compliance Compliance Fully Report: 5.3 Regulatory — — compliance
Disclosure on Management Approach PR
DMA PR Description Reported Cross-reference/ Page in 20F Comments Direct answer Aspects Customer health and safety Fully Report: 1.3.5 Health — — and safety, 2.1.1 Design for environment, 2.1.2 Substance and materials management, 3.2.4 Product safety Product and service labelling Fully Report: 2. Progress in — — detail: Products and services Marketing communications Fully Report: 5.3 Regulatory — — compliance Compliance Fully Report: 5.3 Regulatory — — compliance Nokia sustainability report 2010 6 Reporting approach 114
— 6.5.1 — GRI Index STANDARD DISCLOSURES PART III: Performance Indicators
Economic
Performance Description Reported Cross-reference/ Comments Indicator Direct answer
Economic performance EC1 Direct economic value generated and distributed, Fully Report: 7. Key data F-2 Data presented including revenues, operating costs, employee 2010; 20F: F-2 - in Key data compensation, donations and other community table (not in GRI investments, retained earnings, and payments format) to capital providers and governments. EC2 Financial implications and other risks and Fully Report: 5.2 Managing — Not expected opportunities for the organization’s activities risks and opportunities to cause material due to climate change. financial implications in the near term. EC3 Coverage of the organization’s defined benefit Fully 20F: F-28 Pensions F-28 — plan obligations. EC4 Significant financial assistance received from Fully Report: 3.3 Stakeholders — — government.
Market presence EC6 Policy, practices, and proportion of spending Partially Report: 4.3.1 Supplier — As Nokia is a on locally-based suppliers at significant locations requirements global company of operation. and to ensure material availability, we mainly use global suppliers. Many of these suppliers often operate near our locations of operations.
Proportion of spending on locally-based suppliers not disclosed. Nokia sustainability report 2010 6 Reporting approach 115
— 6.5.1 — GRI Index STANDARD DISCLOSURES PART III: Performance Indicators
Economic (cont.)
Performance Description Reported Cross-reference/ Comments Indicator Direct answer
Market presence (cont.) EC7 Procedures for local hiring and proportion of Fully Report: 3.1.2 Diversity — — senior management hired from the local com- and inclusion munity at significant locations of operation.
Indirect economic impacts EC8 Development and impact of infrastructure Fully Report: 2.2.1 Applica- — — investments and services provided primarily tions for sustainable for public benefit through commercial, in-kind, lifestyles or pro bono engagement.
Environmental
Performance Description Reported Cross-reference/ Comments Indicator Direct answer
Materials EN1 Materials used by weight or volume. Partially Report: 2.1 — Packaging materi- Environmentally leading als disclosed. Full product range, 2.1.2 material declara- Substance and tion of our mobile materials management, devices available. 2.1.3 Packaging EN2 Percentage of materials used that are recycled Partially Report: 2. Progress in — Recycling input materials. detail, 2.1.2 Substance percentage of and materials packaging management, 2.1.3 materials Packaging, 2.1.4 disclosed. Use of Sustainable sourcing recycled metals described. Energy EN3 Direct energy consumption by primary energy Fully Report: 4.2.2 Energy — — source. efficiency (Energy efficiency initiatives); 7. Key Data 2010
Nokia sustainability report 2010 6 Reporting approach 116
— 6.5.1 — GRI Index STANDARD DISCLOSURES PART III: Performance Indicators
Environmental (cont.)
Performance Description Reported Cross-reference/ Comments Indicator Direct answer
Energy (cont.) EN4 Indirect energy consumption by primary source. Fully Report: 4.2.2 Energy — — efficiency (Energy efficiency initiatives); 7. Key Data 2010 EN5 (add) Energy saved due to conservation and efficiency Fully Report: 4.2.2 Energy — — improvements. efficiency (Energy efficiency initiatives); 7. Key Data 2010 EN6 (add) Initiatives to provide energy-efficient or renew- Fully Report: 4.2.2 Energy — — able energy based products and services, and efficiency; 7. Key Data reductions in energy requirements as a result 2010 of these initiatives. EN7 (add) Initiatives to reduce indirect energy consumption Fully Report: 4.2.2 Energy — — and reductions achieved. efficiency; 7. Key Data 2010
Water EN8 Total water withdrawal by source. Fully Report: 7. Key data 2010 — —
Biodiversity EN11 Location and size of land owned, leased, managed Partially Report: 4.2.8 Protecting — Locations in, or adjacent to, protected areas and areas of biodiversity described. high biodiversity value outside protected areas. EN12 Description of significant impacts of activities, Fully Report: 4.2.8 Protecting — — products, and services on biodiversity in protected biodiversity areas and areas of high biodiversity value outside protected areas.
Emissions, effluents and waste EN16 Total direct and indirect greenhouse gas Fully Report: 4.2.2 Energy — — emissions by weight. efficiency; 7. Key Data 2010 Nokia sustainability report 2010 6 Reporting approach 117
— 6.5.1 — GRI Index STANDARD DISCLOSURES PART III: Performance Indicators
Environmental (cont.)
Performance Description Reported Cross-reference/ Comments Indicator Direct answer
Emissions, effluents and waste (cont.) EN17 Other relevant indirect greenhouse gas emissions Fully Report: 7. Key data — — by weight. 2010 EN18 (add) Initiatives to reduce greenhouse gas emissions Fully Report: 1.4 Our — — and reductions achieved. sustainability approach; 2.2 Sustainable lifestyles; 4.2 Environmental impact EN19 Emissions of ozone-depleting substances by Fully Report: 7. Key data 2010 — — weight. EN20 NOx, SOx, and other significant air emissions by Fully Report: 7. Key data 2010 — — type and weight. EN21 Total water discharge by quality and destination. Fully Report: 7. Key data 2010 — — EN22 Total weight of waste by type and disposal Fully Report: 7. Key data 2010 — — method. EN23 Total number and volume of significant spills. Fully Report: 4.2.6 Reducing — — waste
Products and services EN26 Initiatives to mitigate environmental impacts Fully Report: 2.1. — — of products and services, and extent of impact Environmentally mitigation. leading product range, 2.1.2 Substance and materials management, 4.3.1 Supplier requirements EN27 Percentage of products sold and their packaging Partially Report: 2.4 Take-back — Recycling vol- materials that are reclaimed by category. and recycling, 7. Key umes described. data 2010 Nokia sustainability report 2010 6 Reporting approach 118
— 6.5.1 — GRI Index STANDARD DISCLOSURES PART III: Performance Indicators
Environmental (cont.)
Performance Description Reported Cross-reference/ Comments Indicator Direct answer
Compliance EN28 Monetary value of significant fines and total Fully Report: 5.3 Regulatory — — number of non-monetary sanctions for non- compliance compliance with environmental laws and regulations.
Transport EN29 Significant environmental impacts of transporting Fully Report: 4.2.4 Green — — (add) products and other goods and materials used for logistics, 7. Key Data 2010 the organization’s operations, and transporting members of the workforce.
Social: Labor Practices and Decent Work
Performance Description Reported Cross-reference/ Comments Indicator Direct answer
Employment LA1 Total workforce by employment type, Fully Report: 3.1.2 Diversity 156 — employment contract, and region. and inclusion; 20F: 6D. Employees LA2 Total number and rate of employee turnover by Fully Report: 7. Key data 2010, 156 — age group, gender, and region. 20F: 6D. Employees
Labor/management relations LA4 Percentage of employees covered by collective Fully Report: 3.1.7 Labor — — bargaining agreements. conditions (Collective bargaining) LA5 Minimum notice period(s) regarding significant Fully Report: 3.1.7 Labor — — operational changes, including whether it is conditions (Nokia Labor specified in collective agreements. Conditions Standard Nokia sustainability report 2010 6 Reporting approach 119
— 6.5.1 — GRI Index STANDARD DISCLOSURES PART III: Performance Indicators
Social: Labor Practices and Decent Work (cont.)
Performance Description Reported Cross-reference/ Comments Indicator Direct answer
Occupational health and safety LA7 Rates of injury, occupational diseases, lost days, Fully Report: 3.1.5 Health, safety — — and absenteeism, and number of work-related and well-being, 3.1.7 fatalities by region. Labor conditions (Meeting global standards and our own guidelines), 7. Key data 2010 LA8 Education, training, counseling, prevention, and Fully Report: 3.1.5 Health, — — risk-control programs in place to assist workforce Safety and Wellbeing members, their families, or community members regarding serious diseases.
Training and education LA10 Average hours of training per year per employee Partially Report: 3.1 Employees, — Nokia does not by employee category. 7. Key data 2010 track training hours, only the cost of training. LA11 Programs for skills management and lifelong Fully Report: 3.1.3 Training — — (add) learning that support the continued employ- & development ability of employees and assist them in man- aging career endings.
LA12 Percentage of employees receiving regular per- Fully Report: 3.1.4 — — (add) formance and career development reviews. Performance and rewarding Nokia sustainability report 2010 6 Reporting approach 120
— 6.5.1 — GRI Index STANDARD DISCLOSURES PART III: Performance Indicators
Social: Labor Practices and Decent Work (cont.)
Performance Description Reported Cross-reference/ Comments Indicator Direct answer
DDiversityiversity a nand deq equalual oppo opportunityrtunity (cont.) LA13 Composition of governance bodies and break- Fully Report: 3.1.2 Diversity — — down of employees per category according to and inclusion; 20F: gender, age group, minority group membership, 4B Business overview, and other indicators of diversity. Promoting diversity in the workplace LA14 Ratio of basic salary of men to women by em- Partially Report: 3.1.4 — Gender ployee category. Performance and demographics vary greatly both rewarding between the many countries where we operate and employee categories. For our indirect (non-production staff) we use a global framework to set salary bands which are applied to people regardless of gender / age, etc. We also regularly benchmark with other companies in the industry to ensure we are paying competitively. For our production staff, we have agreements which specify the salary for each role and experience level. These are applied consistently irrespective of gender. Nokia sustainability report 2010 6 Reporting approach 121
— 6.5.1 — GRI Index STANDARD DISCLOSURES PART III: Performance Indicators
Social: Human Rights
Performance Description Reported Cross-reference/ Comments Indicator Direct answer
Investment and procurement practices HR1 Percentage and total number of significant Fully Report: 3.1.7 Labor — Nokia conducts investment agreements that include human conditions human rights/ rights clauses or that have undergone human social impact rights screening. assessment for all major new investments e.g. new factories. HR2 Percentage of significant suppliers and contrac- Fully Report: 4.3.1 Supplier — Percentage tors that have undergone screening on human requirements of significant rights and actions taken. suppliers that have undergone screening on human rights dislosed. HR3 (add) Total hours of employee training on policies and Fully Report: 3.1.8 Nokia — — procedures concerning aspects of human rights Code of Conduct that are relevant to operations, including the percentage of employees trained.
Non-discrimination HR4 Total number of incidents of discrimination and Fully Report: 3.1.7 Labor — Total number of actions taken. conditions (Meeting people incidents global standards and disclosed. our own guidelines)
Freedom of association and collective bargaining HR5 Operations identified in which the right to Fully Report: 3.1.7 Labor — — exercise freedom of association and collective conditions (Meeting bargaining may be at significant risk, and ac- global standards and tions taken to support these rights. our own guidelines) Nokia sustainability report 2010 6 Reporting approach 122
— 6.5.1 — GRI Index STANDARD DISCLOSURES PART III: Performance Indicators
Social: Human Rights (cont.)
Performance Description Reported Cross-reference/ Comments Indicator Direct answer
Child labor HR6 Operations identified as having significant risk Fully Report: 3.1.7 Labor — — for incidents of child labor, and measures taken conditions (Meeting to contribute to the elimination of child labor. global standards and our own guidelines)
Forced and compulsory labor HR7 Operations identified as having significant risk Fully Report: 3.1.7 Labor — — for incidents of forced or compulsory labor, and conditions (Meeting measures to contribute to the elimination of global standards and forced or compulsory labor. our own guidelines)
Social: Society
Performance Description Reported Cross-reference/ Comments Indicator Direct answer
Community SO1 Nature, scope, and effectiveness of any pro- Fully Report: 2.3 Mobile — — grams and practices that assess and manage the technology for impacts of operations on communities, including development: entering, operating, and exiting. Empowering people and organizations
Corruption SO2 Percentage and total number of business units Fully Report: 3.1.7 Labor — In 2010 Nokia analyzed for risks related to corruption. conditions (Nokia conducted corpo- Labor Conditions rate level human Standard) risks assessment where corruption was one of the key indicators. Nokia sustainability report 2010 6 Reporting approach 123
— 6.5.1 — GRI Index STANDARD DISCLOSURES PART III: Performance Indicators
Social: Society (cont.)
Performance Description Reported Cross-reference/ Comments Indicator Direct answer
Corruption (Cont.) SO3 Percentage of employees trained in organization’s Fully Report: 3.1.8 Nokia — — anti-corruption policies and procedures. Code of Conduct SO4 Actions taken in response to incidents of corruption. Fully Report: 3.1.7 Labor — — conditions
Public policy SO5 Public policy positions and participation in public Fully Report: 3.3 Stakeholders — — policy development and lobbying. SO6 (add) Total value of financial and in-kind contributions to Fully Report: 5.3 Regulatory — — political parties, politicians, and related institutions compliance by country.
Anti-competitive behaviorv SO7 (add) Total number of legal actions for anti-competitive Fully Report: 5.3 Regulatory — — behavior, anti-trust, and monopoly practices and compliance their outcomes.
Compliance SO8 Monetary value of significant fines and total Fully Report: 5.3 Regulatory — — number of non-monetary sanctions for non- compliance compliance with laws and regulations.
Social: Product Responsibility
Performance Description Reported Cross-reference/ Comments Indicator Direct answer
Customer health and safety PR1 Life cycle stages in which health and safety Fully Report: 1.3.4 Health — — impacts of products and services are assessed and safety, 2.1.1 Design for improvement, and percentage of significant for environment, 2.1.2 products and services categories subject to Substance and materi- such procedures. als management, 3.2.4 Product safety Nokia sustainability report 2010 6 Reporting approach 124
— 6.5.1 — GRI Index STANDARD DISCLOSURES PART III: Performance Indicators
Social: Product Responsibility (cont.)
Performance Description Reported Cross-reference/ Comments Indicator Direct answer
Product and service labelling PR3 Type of product and service information required Fully Report: 2. Progress in — Applicable to all by procedures, and percentage of significant detail: Products and Nokia products. products and services subject to such informa- services tion requirements.
Marketing communications PR6 Programs for adherence to laws, standards, and Fully Report: 5.3 Regulatory — — voluntary codes related to marketing commu- compliance nications, including advertising, promotion, and sponsorship.
Compliance PR9 Monetary value of significant fines for non-com- Fully Report: 5.3 Regulatory — — pliance with laws and regulations concerning the compliance provision and use of products and services. Nokia sustainability report 2010
— 7.0 — Key Data 2010
PRESENTATION Nokia sustainability report 2010 7 KEY DATA 2010 126
— 7.1 — Energy consumption
GWH ENERGY KWH/M2
700 700
600 600
500 500
400 400
300 300
200 200
100 100
KEY 2006 2007 2008 2009 2010 green Energy brown Energy other Energy total Energy/m2 In 2010, the share of renewable energy was 36% of our total electricity consumption, which means one percent increase to 2009. The total energy and electricity consumption stayed in the same level as in 2009, despite increased production volumes. Nokia sustainability report 2010 7 KEY DATA 2010 127
— 7.2 — Facility greenhouse gas emissions
Tonnes G/DEVICE
300 000 900
250 000 750
200 000 600
150 000 450
100 000 300
50 000 150
2006 2007 2008 2009 2010 KEY direct CO2e Emissions indirect CO2e Emissions CO2e/Mobile Device Our facility related CO2 emissions were 208,000 tonnes in 2010. Without our purchase of certified green energy emissions would have been greater by 60,000 tonnes. In addition, in 2010, we offset 32,500 tonnes of carbon by supporting Gold Standard-certified renewable energy projects in China. Facility greenhouse gas emissions (CO2e) include also minor HFC-refrigerant emissions. CO2e/device follows the same declining trend. Nokia sustainability report 2010 7 KEY DATA 2010 128
— 7.3 — co2 emissions From air travel
Tonnes
200 000
150 000
100 000
50 000
2007 2008 2009 2010
KEY CO2 Emissions Nokia’s CO2 emissions from air travel have been reduced by 40% from 2008 base level. CO2 emissions from air travel were 75,893 tons in 2010, which is 2.8% more than in 2009. In 2010 the number of flights actually decreased, but average flight distance increased which resulted in increased emissions. The emissions figure covers 95% of Nokia’s (excluding NAVTEQ) air travel and has been calculated with a conservative interpretation of GHG Protocol emission factors. Nokia sustainability report 2010 7 KEY DATA 2010 129
— 7.4 — water withdrawal
THOUSANDS m3 M3/EMPLOYEE
1600 40.0
1400 35.0
1200 30.0
1000 25.0
800 20.0
600 15.0
400 10.0
200 5.0
2006 2007 2008 2009 2010 KEY Water Withdrawal Water/Employee Water at Nokia facilities is mainly used for sanitary and catering purposes, and to a smaller extent in gardening and maintenance, such as cooling towers. Production processes do not consume water. Withdrawal amount increased 6% between 2009 and 2010 but use per employee has a decreasing trend. In 2010, 12% of water was recycled on site. Nokia sustainability report 2010 7 KEY DATA 2010 130
— 7.5 — waste utilization
Tonnes G/DEVICE
60 000 150
50 000 125
40 000 100
30 000 75
20 000 50
10 000 25
2006 2007 2008 2009 2010 KEY utilised Waste Non-utilised Waste Waste/Mobile Device In 2010, only 6% of Nokia waste ended to landfill or incineration, meaning that we managed to continue our increasing trend of waste utilization. Our total waste amount on the other hand increased by 12% between 2009 and 2010, which is more than the production volumes increased. Incoming packaging waste from our factories is the biggest percentage of our total waste. This is the area where we are concentrating to find ways to reduce also the total waste amounts. Nokia sustainability report 2010 7 KEY DATA 2010 131
— 7.6 — No-load Power Consumption of Nokia’s Chargers
s
0.40
0.35
0.30
0.25
0.20
0.15
0.10
0.05
2004 2005 2006 2007 2008 2009 2010 KEY target 2010 Watts We have reached and exceeded our target of reducing no-load power used by our chargers by 50 percent from 2006 to 2010. The target was already reached during second half of 2009 and during 2010 the no-load power consumption was further decreasing and finally exceeding the target with 18% Nokia sustainability report 2010 7 KEY DATA 2010 132
— 7.7 — Life cycle assessment of energy use and ghg emissions
s Energy use 57% Raw materials and component manufacture 4% Nokia factory 11% Transportation 27% product use 1% Recycling
Greenhouse gas emissions 78% Raw materials and component manufacture 2% Nokia factory 7% Transportation 12% product use 1% Recycling
In 2009, we published the life cycle assessment of a typical Nokia mobile device. This assessment measured the energy use across the entire life cycle of the device (pictured above). The amount of energy consumed during the entire life cycle is around 220 megajoules (MJs) and the total emissions
are 26kg of CO2e. This is equal to driving 167km in a typical family car. The biggest impact throughout the life cycle comes from raw materials and component manufacturing, which makes up 57% of total energy use and 78% of total emissions. Our mobile device production facilities account for 4% of total energy consumption, transportation is 11%, device usage 27%, and recycling 1%. Nokia sustainability report 2010 7 KEY DATA 2010 133
— 7.8 — Labor Conditions In Nine Nokia-owned Factories
FACTORIES %
100
50 KEY Fully compliant Recommendations given improvement needed
TOPICS 01 Working hours 02 Compensation 03 Discrimination 04 FOA 05 forced labor 06 child labor TOPICS 01 02 03 04 05 06 07 08 09 10 07 disciplinary practices 08 occupational health 09 occupational safety 10 management system One area which clearly requires special attention is occupational safety. The manufacturing process itself does not pose safety risks, those arise more from the behaviors and habits of employees such as stacking material in front of an exit door, storing chemicals without proper labeling and inadequate evacuation signs. While individual audit findings in the area of safety are minor, if there haven’t been improvements to correct these small issues the findings are flagged as “Improvement Needed” (indicated by the pink bar). Nokia sustainability report 2010 7 KEY DATA 2010 134
— 7.9 — NOKIA KEY SUSTAINABILITY DATA
These figures cover Nokia sustainability data and exclude Nokia Siemens Networks (NSN) a company approximately 50% owned by Nokia, which publishes its own sustainability report and figures. In addition to separate data tables of Nokia and NSN we have consolidated some key figures in a Nokia group key figure table which can be found after the notes part of this table. See footnotes for more information about the reporting scope and boundaries. This report covers last 5 years – if interested in longer term historical development please see Nokia’s older reports.
ENVIRONMENTAL KEY DATA
GREENHOUSE GAS EMISSIONS (TONNES) 1,2 2010 2009 2008 2007 2006
GHG Scope 1 (direct facility & car fleet) 20,100 19,100 17,400 15,900 17,000 direct CO2 emissions from facilities total 14,200 14,400 13,600 13,100 14,400 hydro-Fluoro-Carbon (HFC) 1,800 1,600 1,700 1,100 1,400 CH4 28 29 27 26 29 N2O 11 12 11 10 12 CO2 emissions from car fleet ³ 4,100 3,100 2,100 1,700 1,200 GHG Scope 2 (Purchased electricity and heat), net amount ⁴ 193,800 211,100 229,400 214,900 240,900 indirect CO2 from facilities, gross amount 286,400 280,600 276,000 241,600 242,700 CO2 avoided due to purchased renewable energy (tonnes) -60,100 -69,500 -46,700 -26,700 -1,800 CO2 avoided due to Gold Standard offsets (tonnes) -32,500 0 0 0 0 GHG Scope 3 (See below) CO2 emissions from air travel (tonnes) ⁵ 75,900 73,811 125,853 161,000 CO2 emissions from employee commuting (tonnes) 6 74,600 CO2e emissions from the use of devices (tonnes) ⁷ 1,470,000 CO2e emissions from supply chain (tonnes) ⁷ 6,880,000 CO₂ Key Performance Indicators Logistics: CO2/sales package, kg 8 3.50 3.06 2.23 Offices: CO2/office headcount, net (tonnes) 9 1.66 1.39 1.93 3.06 3.09 Offices: CO2/office headcount, gross, (tonnes)10 2.83 3.02 3.13 3.82 3.15 Factories: CO2/device, net, (grams) 11 276 377 358 345 422 Nokia sustainability report 2010 7 KEY DATA 2010 135
— 7.9 — Nokia KEY sustainability DATA (CONT.)
ENVIRONMENTAL KEY DATA (CONT.)
Other air emissions (TONNES) 2010 2009 2008 2007 2006 Volatile Organic Compounds (VOC) Emissions to air total (tonnes) 12 66 65 47 43 28 Emissions of Ozone Depleting Substances (ODS), as ODP13 0.16 0.17 0.04 0.09 0.23 Nokia sustainability report 2010 7 KEY DATA 2010 136
— 7.9 — Nokia KEY sustainability DATA (CONT.)
ENVIRONMENTAL KEY DATA (CONT.)
Energy consumption (1 GWh = 3 600 GJ) 2010 2009 2008 2007 2006
Nokia facilities 14 Electricity, total (GWh) 538 537 560 527 498 District heating, total (GWh) 57 56 50 51 52 District cooling, total (GWh) 2 2 2 2 2 Gas, total (GWh) 68 72 66 66 67 Oil, total (GWh) 7 5 6 3 9 Energy, total (GWh) 672 672 684 649 628 Direct energy, total (GWh) 75 77 72 69 76 Indirect energy, total (GWh) 597 595 612 580 552 Renewable energy (GWh) 15 196 189 147 116 4 Renewable energy share of electricity 15 36% 35% 26% 22% 1% Energy, total kWh/m2 485 486 450 462 441
Nokia device chargers’ no-load power consumption 0.114 0.145 0.185 0.250 0.280 (average sold per annum in W) Nokia sustainability report 2010 7 KEY DATA 2010 137
— 7.9 — Nokia KEY sustainability DATA (CONT.)
ENVIRONMENTAL KEY DATA (CONT.)
Water (Nokia facilities) 2010 2009 2008 2007 2006
Water withdrawal total (thousands m3) 1,422 1,340 1,434 1,282 1,207 Water withdrawal by source (%) 16 Municipal water supply 95% 94% 94% 94% 95% Ground water 5% 6% 6% 6% 5% Discharges to Water, Total (tonnes) 17 BOD5 382 364 368 303 219 TSS 504 481 486 400 289 N 61 58 59 48 35 P 15 15 15 12 9 Water discharge destination (%) Municipal treatment facility, % 69% 69% 71% 69% 77% Piped to surface water after treatment, % 22% 22% 20% 24% 20% Used for irrigation after treatment, % 9% 9% 9% 7% 3% Recycled/reused water (thousands m3 ) 18 178 141 130 90 40 Recyling/reuse % of total withdrawal 12% 11% 9% 7% 3% Nokia sustainability report 2010 7 KEY DATA 2010 138
— 7.9 — Nokia KEY sustainability DATA (CONT.)
ENVIRONMENTAL KEY DATA (CONT.)
Waste from Nokia facilities 19 TONNES 2010 2009 2008 2007 2006
Total 59,800 53,200 49,100 53,600 36,800 Reuse 10,300 8,000 2,000 2,100 1,400 Recycle 43,900 38,700 39,000 43,400 27,100 energy recovery 2,200 1,900 2,200 1,600 2,000 incineration without energy recovery 200 200 400 200 500 Landfill 3,200 4,400 5,500 6,300 5,800 Utilisation rate % 20 94% 91% 88% 88% 83% Non-hazardous waste 21 59,400 52,900 48,800 53,300 36,600 Hazardous waste 420 300 270 340 240
E-waste collected outside own facilities (tonnes) 22 415 373 316
Nokia sustainability report 2010 7 KEY DATA 2010 139
— 7.9 — Nokia KEY sustainability DATA (CONT.)
EMPLOYEES & ETHICS 23
2010 2009 2008 2007 2006 Average number of employees 58,642 56,462 57,443 49,887 44,716 Total number of permanent employees, average for year 54,868 53,261 56,512 49,560 Employees in production 29,234 22,935 25,576 28,096 33,031 Total employee training cost for non production staff, EUR million 28 25 55 70 125 Average cost of training per employee, EUR 850 748 1,721 1,908 Injury/illness rate within production, IIR 24 0.32 0.49 0.6 0.73 0.82 Women in senior management, % 25 14.5 13.8 13.7 14.3 12.5 Non-Finnish nationalities in senior management, % 25 53.2 50.7 47.4 44.1 45.1 Voluntary attrition, % 12 12.8 9.3 8.5 6.2 Countries with community involvement programs 42 40 57 45 37 Employee Code of Conduct awareness, % 98 85 86 98 81 Languages of the Code of Conduct 34 34 34 32 31 Nokia sustainability report 2010 7 KEY DATA 2010 140
— 7.9 — Nokia KEY sustainability DATA (CONT.)
SuPPLY CHAIN
2010 2009 2008 2007 2006 Number of assessments 26 37 63 70 90 120 Supplier ISO14001 certification, % 27 92 92 91 Supplier satisfaction survey, % 28 80 79 78 Supplier’s Code of Conduct implementation % 29 93 92 Supplier’s environmental performance % 30 72 93 82 Nokia sustainability report 2010 7 KEY DATA 2010 141
— 7.9 — Nokia KEY sustainability DATA (CONT.)
ECONOMIC
2010 2009 2008 2007 2006 Note: more financial figures can be found in Nokia Group level data table Net sales, EUR million 29,134 27,853 35,099 37,705 33,684 Operating profit, EUR million 3,299 3,314 5,816 7,584 4,865 Research & development, EUR million 2,954 2,984 3,127 2,879 2,717 Nokia sustainability report 2010 7 KEY DATA 2010 142
— 7.9 — Nokia KEY sustainability DATA (CONT.)
N ot e s Following scope has been used for facility related data (energy, emissions from facilities, other air emissions, waste and water) in the above table: NAVTEQ figures have been included for years 2006–2010. Although NAVTEQ has been part of Nokia Group only from mid 2008 onwards, NAVTEQ data has been included also for 2007 and 2006 according to WRI/WBCSD Greenhouse Gas Protocol requirements to recalculate acquisition’s effect until base year, which is 2006 in case of Nokia. NAVTEQ increased Nokia consumption values with around 5%. Nokia’s former Networks business group and functions supporting Networks have been excluded from year 2006 and 2007 figures. Data covers 100% of square meters managed by Nokia in 2006–2010; data collection coverage has been 90–92% of all square meters, including all production sites and other sites greater than 3000 sqm. Data from smaller than 3000 sqm sites has been estimated based on Nokia averages. Due above explained scope definitions year 2006–2010 data in the above table are comparable between each other but in some cases differ from figures published in previous reports.
1) Our approach to measuring greenhouse gas emissions follows the Greenhouse Gas (GHG) Protocol (www.ghgprotocol.org) developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). The GHG Protocol defines three scopes of CO2 emissions: – Scope 1 – direct emissions, from sources owned or controlled by the company – Scope 2 – indirect emissions, from the consumption of purchased electricity, heat, and/or steam – Scope 3 – indirect emissions, as a consequence of the activities of the company, but from sources not owned or controlled by the company. Organisational boundaries We use the “operational control” approach (instead of equity share approach), which means we include entities based on whether we can introduce and implement operating policies rather than on the basis of financial control. Thus, Nokia Siemens Networks’ energy consumption and emissions are included in Nokia Group’s performance and shown in Nokia Group’s summary tables. As Nokia Siemens Networks’ daily operations are separate, detailed data management and reporting are done separately. Our GHG measurements have been verified by third party since 2003 and verifications will continue on an annual basis. Read our verification statements (6.4 Independent assurance). Direct CO2e emissions from Nokia facilities include emissions from gas and oil usage in Nokia facilities and HFC emissions. Emissions are calculated by using the values embedded in WRI/WBCSD GHG Protocol Initiative calculation tool: “Calculation Tool for Direct Emissions from Stationary Combustion, version 4.0”, by using Higher heating values. The effect of greenhouse gases CH4 and N2O produced during burning process have been included in CO2e emissions (CH4 and N2O effect being 0.3% of direct CO2 emissions). HFCs are refrigerants and emissions are minor fugitive emissions from facilities’ cooling systems. Nokia uses also some HCFCs as refrigerants, but they are not included in the inventory because the are not covered by the Kyoto Protocol. These refrigerants are anyhow included in the published Ozone Depleting Potential -figure. Out of Kyoto protocol greenhouse gases Perfluorocarbons (PFCs) and Sulphur hexafluoride (SF6) are not applicable for Nokia. Indirect CO2-emissions (Scope 2 emissions) include emissions from purchased electricity and district heating and cooling. Emissions are calculated by A WRI/WBCSD GHG Protocol Initiative calculation tool: “Indirect CO2 Emissions from the Consumption of Purchased Electricity, Heat, and/ or Steam”, which takes values from IEA. The latest version published in GHG website is used to calculate new data: data from previous years has not been updated with new factors. The year 2006 emissions are calculated with tool worksheet version Nokia sustainability report 2010 7 KEY DATA 2010 143
— 7.9 — Nokia KEY sustainability DATA (CONT.)
Notes (Cont.) 1.2 and 2007 & 2008 with version 2.0 and 2009 with version “GHG emissions from purchased energy, version 21”. Year 2010 emission factors are IEA country statistics from year 2007 (published in October 2009) and for USA latest EPA eGrid factors based on year 2005 statistics. As an exception to get more specific district heating emission factor for Finland, which uses around 90% of Nokia total district heating, Finland year 2008 emission factor is based on energy production data from year 2007 (Statistics Finland, Environment and Energy), calculation method being “benefit sharing” (in stead of alternative “energy method”) and the year 2007 factor is based on Finnish Environmental Institute publication. As no update for “benefit sharing” value was available for 2009 calculation and for simplicity, Finland figure was calculated in 2009 and 2010 with the GHG-tool value for purchased energy. As CO2 typically represents over 99 percent of the GHG emissions in electricity and heat production, indirect emission factors in GHG-tool are for CO2 only, not for CO2e.
2) Total net CO2 emissions in Nokia facilities by regions (Tonnes) 2010 2009 2008 2007 2006 Total 208,000 225,500 243,000 228,000 255,300 Americas 34,200 14,200 26,400 57,500 56,800 Asia-Pacific 127,500 157,400 151,900 121,500 94,300 Europe & Africa 46,300 53,900 64,700 49,000 104,200
3) Car fleet emissions include NAVTEQ fleet used in Digital Mapping Operations. NAVTEQ 2009 figure has been recalculated based on actual km data and figure has changed from partly estimated value published in 2009 report. Sources of carbon conversion factors (i.e. for converting distance driven to kg of CO2) are following: Europe: Guidelines to Defra / DECC’s GHG Conversion Factors for Company Reporting. Factors based on a equal split between medium sized petrol and medium sized diesel cars North America: Calculated with data from www.Fueleconomy.gov and based on the composition up of NAVTEQ car fleet. Rest of the World: DECC’s GHG Conversion Factors for Company Reporting. Factors based on medium sized petrol cars only.
4) Net and gross indirect CO2 emissions: Gross emissions are emissions from purchased electricity and heat calculated with IEA (Internal Energy Agency) country emission factors. Net emissions are gross emissions reduced with CO2 avoided due to purchase of renewable energy (certificates) and carbon offsets.
5) NAVTEQ is not included in the figures. If included, NAVTEQ would account for approximately 9% of Nokia’s business air travel emis- sions. The emissions figure covers over 95% of Nokia’s (excluding NAVTEQ) air travel. Emissions have been calculated with a conservative interpretation of GHG Protocol 2006 emission factors.
6) In 2010 Nokia conducted an employee commuting survey in order to calculate the corresponding CO2 emissions. The following information was required: country, how many days one works at the office/home, commuting distance, time and means of transport. Nokia sustainability report 2010 7 KEY DATA 2010 144
— 7.9 — Nokia KEY sustainability DATA (CONT.)
Notes (Cont.) 3455 employees participated in the survey from 58 different countries. The emissions were then extrapolated to correspond with all Nokia’s employees and as a result the emissions of Nokia’s employee commuting were 74,600 tCO2.
7) Greenhouse gas emissions figures are based on a Life Cycle Assessment in accordance with the ISO 14040 and ISO 14044. These calculations take into account the raw materials acquisition, component manufacturing, Nokia’s own factory processes, inbound & outbound logistics, usage (3 years) and recycling of the mobile devices. The results of a life cycle assessment (LCA) always depend on the calculation method, scoping and assumptions used. (Use of devices figure excludes the minor impact from Nokia Gear & Vertu)
8) This covers component and customer shipments. The year 2010 has been a transition period when we have moved onto a second development phase of CO2 calculation and data gathering from logistics service providers system wise, which means that the basis for our calculations will change. Therefore before the transformation is complete we cannot calculate the CO2 emissions for 2010 logistics. However, despite of all packaging efficiency development activities taken place in 2010 we estimate that due to increasing use of long distance air transportation in customer shipments the figure for 2010 would be slightly higher than the figure for 2009, based on estima- tion it would be about 3.5 kgCO2/sales unit.
9) Net CO2 emissions (i.e. green energy and offsets taken into account) from Nokia office and R&D buildings (excluding NAVTEQ) in metric tonnes, per Nokia employees and externals working in Nokia Offices and R&D
10) Gross CO2 emissions from Nokia office and R&D buildings (excluding NAVTEQ) in metric tonnes, per Nokia employees and externals working in Nokia Offices and R&D
11) Net CO2 emissions (i.e. green energy and offsets taken into account) from Nokia factory sites (including emissions from all energy use in the sites) in grams, per Nokia device volume as published in Nokia annual report
12) Volatile organic compounds (VOC’s) are released during the soldering process and when using solvents in the cleaning process. Until 2009 consumption has increased due to more accurate reporting and changes in the production process. At Nokia, we monitor and control the use of solvents with the aim to reduce the consumption. In general, the consumption is on a low level and no environmental VOC permits or declarations are required by authorities.
13) Nokia uses no Ozone Depleting Substances (ODS) in its products or production. The reported ODS figures are due to minor leakage of ODS contained in cooling systems in facilities. Annual emissions vary due to changing annual maintenance needs. ODP (Ozone Depleting Potential) = emission in kg of CFC-11 equivalent.
14) Energy consumption in Nokia facilities by regions. Direct energy means fuel (gas and oil) used on site and indirect energy purchased electricity and heat, in case of Nokia district heating and district cooling. Nokia sustainability report 2010 7 KEY DATA 2010 145
— 7.9 — Nokia KEY sustainability DATA (CONT.)
Notes (Cont.)
GWh (1 GWh = 3 600 GJ) 2010 2009 2008 2007 2006
Electricity, total 538 537 560 527 498 Americas 114 110 118 119 122 Asia-Pacific 202 196 196 154 122 Europe & Africa 222 231 246 254 254
District heating, total 57 56 50 51 52 Americas 0 0 0 0 0 Asia-Pacific 1 0 0 0 0 Europe & Africa 56 56 50 51 52
District cooling, total 2 2 2 2 2 Americas 0 0 0 0 0 Asia-Pacific 0 0 0 0 0 Europe & Africa 2 2 2 2 2
Gas, total 68 72 66 66 67 Americas 13 13 11 16 18 Asia-Pacific 27 26 23 19 14 Europe & Africa 28 33 32 31 35
Oil, total 7 5 6 3 9 Americas 2 2 3 1.5 2 Asia-Pacific 5 3 3 1.5 7 Europe & Africa 0 0 0 0 0 Nokia sustainability report 2010 7 KEY DATA 2010 146
— 7.9 — Nokia KEY sustainability DATA (CONT.)
Notes (Cont.)
GWh (1 GWh = 3 600 GJ) 2010 2009 2008 2007 2006
Energy, total 672 672 684 649 628 Americas 129 125 132 137 142 Asia-Pacific 235 225 222 175 143 Europe & Africa 308 322 330 337 343
15) Over years, major part of the renewable (“green”) electricity has been from the purchase of RES-E Guarantee of Origin certificates in Nordic countries and Green-e wind certificates in USA. In addition smaller amount of other certificates (RECS, GreenContract, Greenpower, EcoLogo) have been puchased in Europe, Australia and Americas. Green certificates have been bought also in United Kingdom in 2006-2008: the amounts are included as renewable energy in the table, but due to new UK governmental guidance in 2008, no CO2 reduction has been calculated to result from the purchase in 2008.
16) Water withdrawal is reported according to Global Reporting Initiative (GRI) definitions.
17) Discharges to water are coming from sanitary waste water and are calculated based on the headcount. BOD5 (Biological Oxygen Demand for 5 days) measures the amount of oxygen required or consumed for the microbiological decomposition (oxidation) of organic material in water. TSS means Total Suspended Solids, N stands for Nitrogen and P for Phosphorus.
18) Recycled/reused water amount includes water recycled both for sanitary purposes (water recycled many times) and for irrigation.
19) Accuracy of waste data is not as high as with energy and water, as waste vendors often report amounts based on number of waste bins emptied and average weight for waste type, instead of weighing each container. In factories and biggest offices most of the reporting is based on actual weighed amounts.
20) Utilised waste includes waste that has been either reused, recycled or energy of it has been utilised. Remaining waste has been either sent to landfill or incinerated without energy recovery. Composting of biowaste is recorded under recycling.
21) The definitions for what is reported under hazardous and non-hazardous waste have been done on global level to keep simplicity in corporate reporting. E.g. all discarded batteries are reported globally under hazardous waste, although sevaral battery types are not defined hazardous in many countries. On the other hand all electronical waste is reported under non-hazardous , although different sub-categories of it are defined hazardous in different countries. The actual waste treatment is always done according to local legal requirements. Nokia sustainability report 2010 7 KEY DATA 2010 147
— 7.9 — Nokia KEY sustainability DATA (CONT.)
Notes (Cont.) 22) E-waste figure includes electronics waste collected by Nokia outside of own offices, R&D and production, for example as part of phone and accessories take-back campaigns.
23) NAVTEQ is not included in the figures. Figures also exclude NSN as of 2007.
24) IIR = Number of occupational injuries and illnesses per total hours worked by all employees during calendar year multiplied by 200 000 (the number of hours theoretically worked by 100 full time employees in a year).
25) The calculation rule was changed for the 2009 report from an average for the year to be year end figure. This was done to enable a direct comparison with NSN data.
26) Number of assessments; Number of Nokia Supplier Requirements system assessments conducted during the year. 2008 figure is including Nokia direct sourcing supplier system assessments and in-depth assessments. 2009 figure is including Nokia direct and indirect sourcing system assessments including in-depth assessments. 2010 figure is including Nokia direct and indirect sourcing system assessments including in-depth assessments.
27) Supplier ISO14001 certification %; Hardware supplier environmental management system ISO14001 certification status at Supplier sites serving Nokia.
28) Supplier satisfaction survey %; Nokia conducts an annual Supplier Satisfaction Survey. Overall satisfaction reflects how Nokia performs on areas such as planning, relationship management and whether other business expectations force suppliers to compro- mise on their environmental and ethical level of compliance. In 2010, on average, the respondents of the supplier satisfaction survey gave an overall rating for doing business with Nokia as 80 percent on a scale where zero percent represents an unacceptable level and 100 percent an excellent.
29) Supplier’s Code of Conduct implementation %: One expectation for suppliers is that they have a company-level Code of Conduct in place. Codes of conduct set out requirements in several areas, such as corruption, general business routines, health and safety, human rights, working conditions, social rights and environmental standards. The indicator measures percentage of suppliers that have such a Code of Conduct policy in place that meets Nokia’s requirements concerning it.
30) Supplier’s environmental performance %: Suppliers’ environmental performance and target setting status, concentrating on four key areas: energy consumption, carbon dioxide (equivalent) emissions, water consumption and waste generation. Nokia sustainability report 2010 7 KEY DATA 2010 148
— 7.10 — Nokia group key sustainability data
This data table consolidates some key Sustainability performance related figures of Nokia and Nokia Siemens Networks (NSN - a company approximately 50% owned by Nokia). More detailed company specific data can be found from Nokia data table (above) and from NSN own CR Report. This report covers last 5 years – if interested in longer term historical development please see Nokia’s older reports.
ECONOMIC KEY DATA 1 2010 2009 2008 2007 2006 Net sales, EUR million 42,446 40,984 50,710 51,058 41,121 Operating profit, EUR million 2,070 1,197 4,966 7,985 5,488 Earnings/share diluted, EUR 0.50 0.24 1.05 1.83 1.05 Market capitalization at year-end, EUR million 28,709 33,078 41,046 101,995 61,390 Research & development, EUR million 5,863 5,909 5,968 5,636 3,897 Total tax, EUR million 443 702 1,081 1,522 1,357 Interests paid, EUR million 235 256 155 59 18 Dividents paid, EUR million 1,519 1,546 2,048 1,760 1,553 Total purchases of goods and services, EUR million 30,500 29,100 34,600 36,400 29,500 Liquid assets at year-end, EUR million 12,275 8,873 6,820 11,753 8,537 Total liabilities at year-end, EUR million 22,892 20,989 23,072 20,261 10,557 Retained earnings at year-end, EUR million 10,500 10,132 11,692 13,870 11,123 Nokia sustainability report 2010 7 KEY DATA 2010 149
— 7.10 — Nokia group key sustainability data (CONT.)
ENVIRONMENTAL KEY DATA 2010 2009 2008 2007 2006 Energy consumption, GWh 1,190 1,223 1,285 1,223 892 Direct CO2e from facilities, tonnes 20,400 20,100 23,000 18,500 19,200 Indirect CO2e from facilities energy consumption, tonnes, net 2 363,500 413,500 434,500 418,900 334,200 indirect CO2e from facilities energy consumption, tonnes, gross 523,000 520,800 496,700 457,900 336,000 CO2 avoided due to renewable energy, tonnes -127,000 -107,300 -62,200 -39,000 -1,800 CO2 avoided due to Gold Standard offsets, tonnes -32,500 0 0 0 0 Water use, thousand m3 2,197 2,167 2,293 2,091 1,547 Total waste, tonnes 66,130 58,930 55,200 60,810 51,900 Total waste utilisation, % 93% 91% 88% 88% 83% Emissions of ODS, kg of CFC-11 equivalent 3 187 186 42 108 326 E-waste collected outside own facilities (tonnes) 415 373 316 Data reported from Facility area, 1000 m2 2,489 2,641 2,743 2,996 2,158
e m ploy e e S 2010 2009 2008 2007 2006 Total number of employees at year-end 132,427 123,553 125,829 112,262 68,483 Total payroll & benefits, EUR million 5,808 5,658 5,615 4,664 3,457 Pension expenses net, EUR million 431 427 478 420 310
Notes 1 Figures are consolidated Nokia group data that include Nokia Siemens Networks and NAVTEQ. The years are not directly compatible largely because of following reasons: *year 2007 Nokia Siemens Networks data was consolidated in Nokia group data for 9 months. Our consolidated financial data for the periods prior to April 1, 2007 included our former Networks business group only. *year 2008 Nokia Siemens Networks data was consolidated in Nokia Group data for 12 months and NAVTEQ for less than 6 months *year 2009 and 2010 Nokia Siemens Networks and NAVTEQ data were both consolidated in Nokia Group data for 12 months 2 Net and gross indirect CO2 emissions: Gross emissions are emissions from purchased electricity and heat calculated with IEA (Internal Energy Agency) country emission factors. Net emissions are gross emissions reduced with CO2 avoided due to purchase of renewable energy (certificates) and carbon offsets. 3 Nokia uses no ODS (Ozone Depleting Substances) in its products or production. The reported ODS figures are due to ODS contained cooling systems in facilities. ODP (Ozone Depleting Potential) = emission in kg of CFC-11 equivalent.