Nokia sustainability report 2009 The navigation of the report is interactive, enabling you to jump to any section at any time. We therefore encourage you to consider the environment before printing this document. Nokia sustainability report Contents Page 2 2009 Navigation bar Contents Contents 2 1.0 CEO’s Message 3 1.0 CEO’s Message 3 4.8 Health, safety and wellbeing 49 7.4.4 Product energy efficiency 87 2.0 Nokia in 2009 6 4.8.1 Management practices 49 7.4.5 Packaging 88 3.0 About the report 9 2.0 Nokia in 2009 6 4.8.2 Health and safety performance 50 7.5 Promoting sustainability through Nokia 89 4.0 Employees 29 4.8.3 Employee wellbeing 51 services 5.0 Supply chain 54 3.0 About the report 9 4.9 Working together, making a difference 52 7.6 Take-back and recycling 2009 90 6.0 Corporate social investment 64 3.1 Introduction to reporting principles 10 4.10 Code of Conduct 53 7.6.1 Our long-term commitment to partner 91 7.0 Environment 71 3.1.1 GRI 12 networks – the story of China Green Box 8.0 Operation 99 3.1.2 Global Compact 13 5.0 Supply chain 54 7.6.2 Expansion to new regions – 92 9.0 Key data 2009 113 3.1.3 Sustainability governance 14 5.1 Supplier requirements 55 Middle East and Africa 10.0 Independent Assurance 133 3.1.4 Regulatory Compliance 15 5.2 Supplier performance 56 7.6.3 Cooperating with the Finnish Post 93 11.0 Global Reporting Initiative Index 2009 138 3.1.5 Sustainability opportunities and risks 16 5.2.1 Supplier self-assessments 57 Office on take-back 3.2 Stakeholder Engagement 19 5.2.2 Supplier on-site assessments 58 7.6.4 Take-back campaigns in South 94 3.2.1 External Recognition and Awards 22 5.3 Supplier performance metrics 59 East Asia Pacific (SEAP) in 2009 3.2.2 Accessibility 24 and targets 7.6.5 USA goes to the movies 95 3.3 Health and safety of product use 25 5.4 Training and building capability 60 7.6.6 Latin America collection network 96 3.4 Customer satisfaction 26 5.5 Sourcing materials 61 7.6.7 Indian take-back campaign kick 97 3.4.1 Trade customers 26 5.5.1 Origin of raw materials 62 off and expansion 3.4.2 Operators 27 5.6 Industry collaboration 63 7.6.8 Europe – producer associations 98 3.4.3 Consumers 27 3.5 Privacy and security 28 6.0 Corporate social investment 64 8.0 Operations 99 6.1 Corporate social investment strategy 65 8.1 Facility energy consumption, 100 4. Employees 29 6.2 The development of our corporate social 66 emissions and water use 4.1 Employment practices 30 investment programming 8.2 Factory initiatives 101 4.1.1 Consultation and communication 30 6.2.1 Mobile technology for development 67 8.2.1 Dongguan, China 101 4.1.2 Employee forums and collective 31 6.2.2 Youth development 69 8.2.2 Chennai, India 101 bargaining 6.3 Disaster relief 70 8.2.3 Salo, Finland 102 4.1.3 Employee survey 32 6.4 Employee volunteering 70 8.2.4 Masan, South Korea 102 4.2 Nokia Way 33 8.2.5 Other plants 102 4.2.1 The Nokia Way and Values 33 7.0. Environment 71 8.3 Energy efficiency 103 4.2.2 Defining our values 34 7.1 Environmental strategy 72 8.4 Factory energy efficiency projects 104 4.2.3 Labor practices and employment 35 7.1.1 Minimizing our environmental 73 8.5 Renewable energy 105 guidelines footprint 8.6 Green buildings 106 4.2.4 Labor conditions standard 36 7.1.2 Key focus areas 74 8.7 Other sustainability projects 108 4.2.5 External temporary labor in production 37 7.1.3 Climate strategy 75 8.8 Green logistics 109 4.2.6 Factory assessments 38 7.2 Environmental management at Nokia 77 8.9 Travel and commuting 110 4.2.7 Employment breakdown 39 7.2.1 Environmental Management Systems 78 8.10 Other environmental impacts 111 4.3 Diversity 40 7.2.2 Participation in external initiatives 79 4.4 Talent development 42 7.2.3 Environmental stakeholder 80 9.0 Key data 2009 113 4.4.1 Education policy 42 engagement 4.4.2 Training and development 43 7.2.4 Training and development 81 10.0 Independent Assurance 133 4.5 Performance management 44 7.3 ICT as an enabler 82 4.5.1 Performance evaluation 44 7.4 Environment and our products 83 11.0 GRI index 2009 138 4.5.2 Leadership 45 7.4.1 Rolling out eco improvements across 84 4.6 Performance-based rewarding 46 the product portfolio 4.6.1 Incentives 47 7.4.2 Environmental impact of our products 85 4.7 Reorganization and restructuring 48 7.4.3 Materials and substance management 86 Nokia sustainability report Page 3 2009 Navigation bar 1. 0 Contents 2 1.0 CEO’s Message 3 2.0 Nokia in 2009 6 3.0 About the report 9 CEO’s Message 4.0 Employees 29 5.0 Supply chain 54 6.0 Corporate social investment 64 7.0 Environment 71 8.0 Operation 99 9.0 Key data 2009 113 10.0 Independent Assurance 133 11.0 GRIGlobal Index Rep 2009orting Initiative Index 2009 138 1.0 CEO’s Message 4 Nokia sustainability report 1.0 Page 4 2009 CEO’s Message Navigation bar 1.0 Contents 2 CEO’s Message 1.0 CEO’s Message 3 2.0 Nokia in 2009 6 3.0 About the report 9 At Nokia we strive to lead in sustainability by taking it into account in everything we do. While it is a key part 4.0 Employees 29 of our business strategy, we also look beyond our own operations to how the more than 1.2 billion people 5.0 Supply chain 54 6.0 Corporate social investment 64 who use a Nokia phone can use mobility to embrace a more sustainable lifestyle every day. 7.0 Environment 71 8.0 Operation 99 9.0 Key data 2009 113 In this report, we present a wide range of examples of how and where our work enhances sustainability. 10.0 Independent Assurance 133 There are sections on improved accessibility, education, data gathering, materials management, product 11.0 Global Reporting Initiative Index 2009 138 energy efficiency and the various environmental services available through mobile devices. We also look at improvements in our own operations, such as packaging, logistics and supply chain management. We believe that better use of information and communication technologies can contribute in a big way to 1.0 CEO’s Message 4 economic growth while offering considerable opportunities to cut greenhouse gas emissions and address global warming. That said, the full potential of mobility to help drive sustainability has yet to be realised. Last year had its challenges brought about by the global recession and changes in the mobile industry. Nokia is responding to the increasing consumer interest in features that are driven by innovations in software. As a result, we have been working hard to rebuild our R&D organization and define new ways of working. In early 2009, we announced voluntary measures aimed at reducing personnel-related costs and the need for involuntary layoffs. Thanks to cooperation with our employees, our programs were successful and of the reductions that we made in 2009, less than 25 percent were involuntary. On a more positive note, after several years favorable rating by the widely recognized Dow Jones Sustainability Indexes, this year Nokia was chosen as the “World Technology Supersector Leader.” This honor means Nokia was ranked No. 1 in sustainability across the entire global technology sector on the basis of a detailed corporate sustainability analysis. Nokia has a long track record of taking sustainability into account in the way we do business every day. For example, we regularly evaluate the use of water and materials, as well as our carbon dioxide emissions, across our supply chain. We have further broadened our environmental focus areas, with water and biodiversity issues growing in importance. In 2009, we continued to look at reducing the environmental impact of our devices and operations. For example, over the last decade, we have reduced the average no-load energy consumption of our chargers by more than 80 percent. In our best chargers, the reduction has been more than 95 percent. continued... Nokia sustainability report 1.0 Page 5 2009 CEO’s Message (continued) Navigation bar Since we created our climate strategy in 2006, we have looked at how our products, services, operations, facilities and the ways we work can contribute to a reduction in our CO2 emissions. In 2009, we reduced our Contents 2 1.0 CEO’s Message 3 facilities’ CO2 emissions by 12 percent, compared with levels in 2006. During the same year, we also reached 2.0 Nokia in 2009 6 3.0 About the report 9 the energy savings target we had set to reach by 2012. We also made progress in waste utilization and in 4.0 Employees 29 our efforts to reduce water use and air travel. These achievements were mainly due to various reduction 5.0 Supply chain 54 6.0 Corporate social investment 64 programs, but the slowdown in business activities in 2009 also had an impact.