Nokia Corporate Responsibility Review 2008 Page 1 Page Contents 1. About the report 4 2. Summary (CR Review 2008) 4 Customers 4 Employees 5 Suppliers 6 Society 8 Environment 9 Independent Assurance Report 12 3. CR overview 14 Our vision 14 Our commitment 15 Our approach 16 Our customers 19 Our products 22 Reporting 24 Performance 29 Business benefits 31 Stakeholder engagement 33 4. Employees 39 Who we are 39 Our commitment 39 Our approach 40 Health, safety and wellbeing 53 5. Community 55 Mobile technology for development 56 Youth Development 60 Nokia Helping Hands - Employee volunteering 65 Corporate giving 67 Page 2 Page 6. Supply chain 69 Our commitment and approach 71 Nokia Supplier Requirements 72 Our Progress and Targets 77 Supplier Performance 78 Training & building capability 81 Sourcing materials 83 Industry collaboration 84 Supplier diversity 85 7. Environmental Report 2008 85 2008 in short 86 Products 88 Services 92 Take-back and recycling 93 Operations 99 Environmental management 109 Goals 112 Independent assurance 113 Page 3 Page 1. About the report This is Nokia’s 6th Corporate Responsibility (CR) Report, covering the calendar year 2008. The report highlights Nokia’s performance in the areas where business practices most affect society and the envi- ronment. It covers the key ethical, socio-economic and environmental areas we believe are most relevant to our business and our stakeholders. This report is available only online. The official Nokia Corporate Responsibility Report is incorporated in the annual report on Form 20-F. Those pages can be found also in the summary of this report. Details about Nokia’s financial performance are published in quarterly results releases, the annual report on Form 20-F, and Nokia’s annual ac- counts. All these can also be viewed on the corporate website. Further details, background information on our approach and a history of Nokia’s CR activities can be found on the corporate pages of Nokia’s website. More detailed country information on specific activities relevant to corporate responsibility is included in Nokia’s CR map. Previous CR reports can be found on the company’s CR website. We welcome your views on our activities and our performance. Please contact the Nokia CSR team at csr.feed- [email protected]. 2. Summary (CR Review 2008) Customers The following discussion includes description of the corporate responsibility activities of our Devices & Services and Nokia Siemens Networks segments only, unless otherwise indicated. In the following discussion, “Nokia” refers to Nokia excluding NAVTEQ and Nokia Siemens Network. PricewaterhouseCoopers Oy has provided independent assurance over certain information presented herein. See their assurance report. Accessibility of Nokia devices Accessibility is about making Nokia devices and services usable and accessible to the greatest possible number of people, including customers with disabilities. We have been working on accessibility concerns for more than ten years, and by the end of 2008 we continued to offer more than 60 device features or applications aimed at provid- ing greater accessibility for people with limitations in hearing, speech, vision, mobility and cognition. We work together with representatives from disability organizations, regulators and academia to discuss accessibility priori- ties and development. During 2008, we offered new functionality for accessibility, including: • A wireless bluetooth loopset LPS5, for connecting a mobile phone or other audio device with t-coil equipped hearing aids; • Improved video call functionality to support online calls using sign language; and • Support for Hands Free Adapter with a mobility switch that allows users to activate all the voice activate fea- tures of a Nokia device. Page 4 Page Nokia Forum third-party developers have also introduced voice feedback, optical scanning and supportive services to the mobile devices that complement the Nokia offering addressing sensorial and physical challenges in mobile communications. Employees The following discussion includes description of the corporate responsibility activities of our Devices & Services and Nokia Siemens Networks segments only, unless otherwise indicated. In the following discussion, “Nokia” refers to Nokia excluding NAVTEQ and Nokia Siemens Network. PricewaterhouseCoopers Oy has provided independent assurance over certain information presented herein. See their assurance report. Values We have a set of values developed by our employees around the world that reflects and supports our business and changing environment. The values act as a foundation for our evolving business culture and form the basis of how we operate: achieving together, to reflect how we reach out to others, encouraging them to work together with us and share risks, responsibilities and successes; very human, to reflect how we do business and work with each other; engaging you, to reflect how we engage our customers, our suppliers, and our own employees in what Nokia stands for; and passion for innovation, to reflect our curiosity about the world around us and our desire to improve people’s lives through innovation in technology. We also encourage open discussion and debate within the business. An annual global employee survey is conduct- ed as a way of getting feedback from our employees on a range of important issues, and we act on this feedback when designing our people policies and practices. It is also possible for employees to ask questions about our business, even anonymously, through the company Intranet— our internal Internet pages—and receive a prompt and openly published response. Nokia Siemens Networks also has a set of values that reflects and supports its business and the changing envi- ronment. The values form the basis of how Nokia Siemens Networks operates: focus on our customer, to reflect the importance of helping customers succeed in their business; communicate openly, to reflect the importance of speedy, factbased and transparent communications; inspire, to reflect the importance of building excitement within the business, especially about the needs of customers; innovate, to reflect the focus on innovation to suc- ceed; and win together, to reflect how trust, respect, honesty and openness form the workplace. Code of Conduct Efforts at expanding the knowledge among employees of Nokia’s Code of Conduct continued in 2008. By the end of the year, approximately 86% of Nokia employees had completed the Nokia Code of Conduct training provided by the company. Upon the completion of our acquisition of NAVTEQ, we have also communicated our Code of Conduct to all NAVTEQ employees to make them aware of our values, ethics and responsibilities both as a business and as individual employees. Information on the Nokia Code of Conduct is available in 34 languages, and a web training tool and online test for employees are used to ensure they understand the issues covered in the Nokia Code of Con- duct. Since the beginning of 2009, Nokia has had an Ethics Office, whose role is to support all employees in matters relating to the Code of Conduct. On January 1, 2009, Nokia Siemens Networks published a revised Code of Conduct which is identical with that of Nokia. See Item 4B. “Business Overview—Nokia Siemens Networks—Compliance Program” of Nokia’s Form 20-F. Labor conditions at manufacturing facilities 5 Page At December 31, 2008, we had 25 576 employees working directly in production, including manufacturing, packag- ing and shipping, at our ten mobile device manufacturing facilities. During 2008, the injury and illness rate amongst all our employees at our production facilities was 0.6. In 2008, all nine of our main device manufacturing facilities were assessed against our assessment framework which is based on International Labour Organization conven- tions and the human rights declarations of the United Nations. The assessments were conducted by a professional external assessment company, STRCSCC. Results showed these factories have successfully implemented the framework into employment processes, al- though some areas for improvement related to overtime control and occupational safety, mainly related to fire safety, were detected. All findings have an action plan in place and those facilities with an action plan will receive a reassessment during first half 2009 to ensure full compliance with the framework. To support the implementation of the framework all manufacturing facility employees undertake training on the principles of the framework as part of their induction. At December 31, 2008, Nokia Siemens Networks had 2 012 employees working directly in production—including manufacturing, packaging and shipping—at its production facilities. During 2008, Nokia Siemens Networks started to develop a framework for managing labor conditions. The first step was to define a standard, which is based on International Labour Organization conventions and standardized Industry Code of Conduct, benchmarked against international labor laws and standards. This standard will be integrated into Nokia Siemens Networks global employment policies and guidelines, providing information and guidance. Using the standard as performance indicators, Nokia Siemens Networks is also building an effective management system to monitor and assess labor conditions, starting first with manufacturing operations. Training We provide a variety of mandatory and voluntary inhouse and external training opportunities for our employees to help them develop a broad range of skills