People & Planet Report 2016 1.0 About this report We would like to thank you for reading the Nokia People & Planet Report 2016. The report presents and discusses the key ethical, environmental, and socio- economic issues most material to our business and stakeholders during the 2016 fiscal year. Sustainability 2016 About Approach Improve Protect Integrity Respect Together Data Assurance Nokia People & Planet Report 2016 2 7.01.0 ImprovingAbout people’sthis report lives with technology The scope of this report The scope of this report is Nokia Group, including Nokia’s Networks business. However, the numeric Further information Nokia's Networks business groups, Nokia data regarding our facilities energy use, waste, and Technologies, and Group Common and Other water include the whole Nokia Group. The chapters We have published annual corporate responsibility Your feedback Functions, in 2016. ‘Improving people’s lives with technology’ and reports since 1999 and the reports are available in We welcome your ‘Making change happen together’ include references digital format on our website from as far back as views and questions For an explanation of how we chose what to include to activities that took place in early 2017 but this is 2003 at nokia.com/sustainability on our activities and in this year’s report, please refer to the section indicated in the text separately. our performance. If Materiality: Identifying our key priorities. We also discuss sustainability and corporate you would like to share Reporting frameworks and responsibility topics in our official annual reports, your opinions, please At the end of 2015, our shareholders voted including the annual report on Form 20-F that contact us at overwhelmingly to approve the Alcatel-Lucent assurance is filed with the U.S. Securities and Exchange global.sustainability Commission in the United States*. The reports are acquisition, and in early January 2016 we In our reporting, we are committed to expanding @nokia.com available at nokia.com/investors announced that we had gained control of Alcatel- our transparency and our coverage. To help ensure Lucent through the successful public exchange compatibility with other organizations, our report is In addition to our own reports, we provide detailed offer for all outstanding Alcatel-Lucent securities prepared in accordance with the Global Reporting information through various external reports. by holding nearly 80% of outstanding Alcatel- Initiative GRI G4 guidelines, “in accordance – Core” In 2016, we reported our climate impacts to Find us in social Lucent securities. On November 2, 2016, we criteria. Our report is also compliant with the UN CDP – a leading global organization working with media: achieved 100% ownership of Alcatel-Lucent. Former Global Compact advanced. The Global Reporting shareholders and companies to disclose the Connect with Nokia on Alcatel-Lucent operations are fully included in our Initiative index is available as a separate PDF greenhouse gas emissions of major corporations. Twitter, LinkedIn, 2016 Nokia Group reporting. We use the term document on our website and some more detailed We answered the RobecoSAM questionnaire, which Instagram, Glassdoor “Comparable combined company” when we refer to sustainability data is included as a separate chapter is used as the basis for the Dow Jones Sustainability and Facebook. Follow information including combined Nokia Group and at the end of this report. our blog former Alcatel-Lucent data prior to acquisition of Indices, and we answered the EcoVadis evaluation which our customers use to evaluate our Alcatel-Lucent in January 2016. Nokia Group data Our selected key sustainability indicators have sustainability performance, to name just a few. excludes Discontinued operations, which refer to been assured by an independent auditor of Nokia, the sale of the Devices and Services Business in PricewaterhouseCoopers Oy. 2014 and the sale of HERE Business in 2015. Unless otherwise indicated or evident from the context, we generally provide information for the A summary of this report As our environmental impact and our ability to year 2016, with comparisons to the year 2015. manage it originate predominately from our This report was published in May 2017 and it is only networks business, the ‘Protecting the environment’ available in digital format. We have also published and 'Responsible sourcing' chapters focus on an online summary of this report which is available explaining the sustainability matters related to at nokia.com/people&planet. *Also, financial and operational information in this report should be read in conjunction with the more detailed information provided in our interim reports and annual financial reports, as well as the risk factors and forward-looking statements disclaimers included in such reports. Sustainability 2016 About Approach Improve Protect Integrity Respect Together Data Assurance Nokia People & Planet Report 2016 3 1.0 About this report 8.0 Conducting our business with integrity 8.1 Our approach to responsible business Contents 2.0 Letter from the President and CEO 8.2 Promoting ethical behavior 8.3 Addressing human rights 3.0 Our sustainability achievements and challenges 2016 8.4 Data privacy and security 3.1 We are proud of 8.5 Responsible sourcing 3.2 Our achievements included 8.6 Our achievements – business with integrity 3.3 Our recognitions and awards 3.4 We can do more 9.0 Respecting our own people in everything we do 3.5 Our 2016 targets and progress 9.1 Making Nokia a great place to work 9.2 Ensuring decent working conditions & fair employment 4.0 About Nokia 9.3 Strengthening our health & safety performance 4.1 Nokia today 9.4 Enhancing company culture 4.2 Our economic impact 9.5 Human capital development 4.3 Our innovation approach 9.6 Diversity, inclusion, and anti-discrimination 9.7 Our achievements – respecting our people 5.0 Our approach 5.1 Creating a more sustainable world 10.0 Making change happen together 5.2 Our renewed priorities 10.1 Our approach - engaging with stakeholders 5.3 Materiality - how we identified our key priorities 10.2 Cooperating with others in our industry 5.4 How we manage sustainability 10.3 Supporting our customers’ sustainability goals 5.5 How the UN Sustainable Development Goals relate to Nokia 10.4 Collaborating with NGOs 5.6 Our new sustainability targets 10.5 Collaboration with universities, cities, and other industries 10.6 Our achievements – making change happen 6.0 Improving people’s lives with technology 6.1 Connecting people and things 11 Key sustainability data 6.3 Sustainability related products and services 6.4 Enhancing lives through Corporate Community Investment 12 Independent practitioner’s assurance report 6.5 Our achievements – improving lives 7.0 Protecting the environment 7.1 Our commitment to protecting the environment 7.2 Managing our environmental impact 7.3 Minimizing the environmental impact of our products 7.4 Minimizing the climate impact of networks, maximizing the benefits 7.5 Improving the environmental efficiency of our own activities 7.6 Our achievements – protecting the environment Sustainability 2016 About Approach Improve Protect Integrity Respect Together Data Assurance Nokia People & Planet Report 2016 4 2.0 Letter from the President and CEO 2016 was a year of remarkable change for Nokia. We delivered solid financial performance and, with the exception of a handful of projects, completed the integration of Alcatel-Lucent. Sustainability 2016 About Approach Improve Protect Integrity Respect Together Data Assurance Nokia People & Planet Report 2016 5 2.0 Letter from the President and CEO Today, we are a fundamentally Let me share some highlights, and you can then find research that provided practical guidance to global more detail in the rest of this report. leaders implementing national digital health systems different company, with perhaps and solutions. the broadest product portfolio in Improving people’s lives with our industry. From the enabling technology Protecting the environment infrastructure for 5G and the We believe we can make our greatest impact on the We take very seriously the risks of climate change Internet of Things, to emerging world’s sustainability challenges by developing and and the depletion of natural resources. And last year, applications in virtual reality and enhancing solutions that improve lives. This core we worked tirelessly to support our customers in belief is at the heart of everything we do, and as a reducing their environmental impact by improving the digital health, we are shaping the global leader in delivering technology solutions, we energy efficiency of our products. For example, by future of technology. I am pleased know we must continue to apply our solutions, our modernizing 27% more base station sites last year, our customers averaged 43% more energy savings to say that, in fact, our integration robust innovation, to make a positive impact on the world and those living in it. than those running on non-modernized networks. provided the opportunity to apply This is a significant improvement by any standard. the best practices of each company In 2016, we made progress building a resilient We also continued to expand our zero CO2 emissions to deliver a robust sustainability infrastructure, promoting sustainable industrialization, and fostering innovation – key offerings. Today, 120 customers use at least one zero platform. objectives listed as part of the UN Sustainable emission product or service, and 104 customers use Development Goals – across a range of technology renewable energy sources through Nokia. Sustainability remains an important foundation for innovations. Our radio networks’ customers serve And we work hard in our own operations to reduce our our business. Aligned with our renewed corporate around 5.5 billion subscriptions worldwide; we environmental impact. Last year our facility emissions strategy as well as our brand commitments, our performed more than 40 use case trials in 5G, decreased by 14%. work is driven by performance as well as our deep the next generation of wireless networks; and, in commitment to ethics and integrity.