WE ENCOURAGE YOU TO CONSIDER THE ENVIRONMENT BEFORE PRINTING THIS DOCUMENT. NOKIA SUSTAINABILITY REPORT 2011 OVERVIEW abcdefg ...................... g 2 GREAT SUSTAINABLE MOBILE PRODUCTS… GOOD FOR PEOPLE, GOOD FOR PLANET …ARE MADE …ENABLE WITH BEST PEOPLE TO ENVIRONMENTAL IMPROVE AND SOCIAL THEIR LIVES PRACTICES 3 ABOUT THE OVERVIEW 1.0 CONTENTS FOR NOKIA, SUSTAINABILITY MEANS MAXIMIZING Thank you for taking the time to read our report YOUR FEEDBACK 1.1 GREETINGS FROM NOKIA’S CEO THE POSITIVE, ENABLING EFFECT OF OUR MOBILE overview. Within these pages, you’ll find a wealth of 1.2 NOKIA IN 2011 We welcome your views on our activities and our TECHNOLOGY ON PEOPLE AND PLANET, WHILE information about our efforts to create a sustainable 1.3 KEY SUSTAINABILITY TOPICS performance. If you’d like to share your opinions, 1.3.1 IDENTIFYING KEY SUSTAINABILITY TOPICS MINIMIZING THE POSSIBLE NEGATIVE IMPACT business. Traditionally, sustainability means balancing please contact the Nokia sustainability team at 1.3.2 OUR KEY SUSTAINABILITY TOPICS TABLE OF OUR ACTIVITIES. economic, environmental and social priorities so that [email protected], or respond to 1.4 KEY ACHIEVEMENTS AND CHALLENGES IN 2011 the needs of the present do not compromise the the feedback questionnaire available on our website. 1.4.1 NOKIA IN 2011 SUSTAINABILITY RANKINGS needs of the future. For Nokia, this means maximizing 1.5 SUSTAINABILITY MANAGEMENT APPROACH 1.5.1 SUSTAINABILITY GOVERNANCE the positive, enabling effect of our mobile technology AND MANAGEMENT on people and planet, while minimizing the possible 1.5.2 SUSTAINABILITY TARGETS, MANAGEMENT negative impact of our activities. Responsible SYSTEMS AND POLICIES environmental and social practices are integrated into everything we do. From the devices we build and the suppliers we choose, to our mobile solutions that enhance people’s education, livelihoods and health. In sum, we strive to create value for people, planet and Nokia. Open and transparent reporting of our progress is a key part of our sustainability activities. This 2011 report overview (for the fiscal year 2011) covers the key ethical, socio-economic and environmental areas most relevant to our business and our stakeholders. The activities are split into the themes of people and planet. For both, we first discuss our enabling effect and then our own impact. REPORTING SCOPE Nokia has published corporate responsibility reports annually since 2002 and we’ve reported our environmental activities continually since 1999. Nokia Siemens Networks (NSN), which is approximately 50% owned by Nokia, publishes its own detailed Sustainability Report on their website, and is excluded in this report unless otherwise indicated. 4 1.1 GREETINGS FROM NOKIA’S CEO 1.0 CONTENTS HELLO THERE, NEW STRATEGY SUSTAINABILITY IN FOCUS 1.1 GREETINGS FROM NOKIA’S CEO 1.2 NOKIA IN 2011 Nokia undertook a monumental shift Nokia’s strategy is based around three From a sustainability point of view, 1.3 KEY SUSTAINABILITY TOPICS in 2011, embarking upon a new strategy main areas. First, we are partnering with these three pillars all have a role to play 1.3.1 IDENTIFYING KEY SUSTAINABILITY TOPICS 1.3.2 OUR KEY SUSTAINABILITY TOPICS TABLE that reflected the sea change in the Microsoft to deliver industry-leading in helping us achieve our goal: to make 1.4 KEY ACHIEVEMENTS AND CHALLENGES IN 2011 mobile industry and our intent to both smartphones using the Windows Phone great, sustainable mobile products; 1.4.1 NOKIA IN 2011 SUSTAINABILITY RANKINGS stay ahead of, and capitalize on, the operating system. In October we already devices that incorporate the best 1.5 SUSTAINABILITY MANAGEMENT APPROACH challenges facing us. I’m proud to say saw the first fruit of our labors with the environmental and social practices and 1.5.1 SUSTAINABILITY GOVERNANCE that even in a year of such big change, launch of the Nokia Lumia 800 and 710, enable people to improve their lives. AND MANAGEMENT Nokia’s commitment to sustainability and we followed this up with further Perhaps the greatest resonance, 1.5.2 SUSTAINABILITY TARGETS, MANAGEMENT SYSTEMS AND POLICIES remained firm. In fact, it was further Lumia launches, the Nokia Lumia 900 however, can be found in the work we strengthened by the new strategy, and 610 in early 2012. All our new are doing to connect the next billion. where we saw clear evidence of Lumia phones fully meet our strict Nokia strongly believes that access to progress before the year was out. environmental requirements. communication and information is a right, Second, we aim to connect the next not a privilege. Mobile communications billion to the Internet and information, technology has the power to strengthen bringing consumers with limited public life and the role of citizens around economic means the full benefits of the globe, and it has proven time and mobile communications. The lines again that it can democratize the spread between a smartphone and a feature of information. This belief, this ethos, phone are blurring, and people, runs deep within all of our employees, regardless of where they are based, and we had numerous examples of this want to do more with their phones. on display in 2011. At Nokia World we launched our Asha In South Africa, we are very proud of range of devices, which offer consumers the achievements of Nokia Mobile the smartphone-like features desired Mathematics, a free-of-charge service in developed markets – touch screens, that turns your mobile device into a text QWERTY keyboards and games – but at and exercise book. Students get access to lower price points. We augmented our theory and a database of thousands of Asha line with further launches in exercises, solutions, and competitions. February, 2012. Nokia has found that students who use Finally, Nokia is focusing on what we call the service show improvement in their future disruptions – technology, business, grades, and teachers get a better and process areas that we have identified understanding of their pupils’ strong as having a profound influence on our and weak points. In 2011, 25,000 Grade industry. We will invest in these areas to 10 students benefited from the solution, ensure we are positioned as a leader in and Nokia plans to double this in 2012 to the next era of computing innovation reach 50,000 Grade 10 and 11 students. and remain ahead of the competition. 5 1.1 GREETINGS FROM NOKIA’S CEO 1.0 CONTENTS Nokia is also active in driving But sustainability means more than this. CHALLENGES REMAIN Like all Nokia employees, I take great pride 1.1 GREETINGS FROM NOKIA’S CEO environmental sustainability, working Following our strategy announcement, in the work we do to improve people’s 1.2 NOKIA IN 2011 These examples give just a taste of both with governments as well as we announced a number of planned lives around the world. And yet, in many 1.3 KEY SUSTAINABILITY TOPICS some of the work that we did during the 1.3.1 IDENTIFYING KEY SUSTAINABILITY TOPICS with other multinational companies. changes to our operations and, areas, we’ve only scratched the surface year, and many more cases can be found 1.3.2 OUR KEY SUSTAINABILITY TOPICS TABLE According to the United Nations unfortunately, this had an impact on in terms of what we can do. It’s the scale in this report. I’d like to stress that while 1.4 KEY ACHIEVEMENTS AND CHALLENGES IN 2011 Environment Programme, about 50 our personnel. We responded with the of this challenge that drives and our change journey started in 2011, it is 1.4.1 NOKIA IN 2011 SUSTAINABILITY RANKINGS million tonnes of electronic waste is creation of the Bridge program, which motivates us on a daily basis, and I look far from over. We entered 2012 in the 1.5 SUSTAINABILITY MANAGEMENT APPROACH generated each year, and E-waste is aims to support employees during forward to sharing more of our progress 1.5.1 SUSTAINABILITY GOVERNANCE heart of our transition, showing clear AND MANAGEMENT the fastest growing waste stream. tough times by focusing on three and good news with you in the future. progress versus our strategy but 1.5.2 SUSTAINABILITY TARGETS, MANAGEMENT areas in particular: SYSTEMS AND POLICIES In Kenya, we commissioned a report in operating in a fiercely competitive Best regards, 2011 that showed only 14% of citizens are • Re-employment of employees industry that is in constant flux. Stephen Elop aware that mobile phones can be recycled, affected by Nokia’s change On the sustainability front, challenges and only 2% actually recycle their old in strategy also remain. We are focused on honing mobile phones. We followed this up with The local communities where • the direction we give our suppliers and a campaign to drive awareness around our operations have changed measuring their performance, ensuring mobile recycling, including advertising, The long-term of Nokia and how • that they closely follow our comprehensive press conferences, and an outreach to we create value for society at large set of Nokia Supplier Requirements for bloggers and citizens. Surveys show Bridge offers a wide range of possibilities, environmental and social performance. that Nokia is seen as the greenest from traditional individual re-employment brand in Kenya. And unfortunately the renewable energy support to investments that encourage market has developed more slowly than This is part of a broader global effort entrepreneurship, re-training and expected. That said, Nokia still showed from us: Nokia operates the world’s innovation which can fuel new growth progress on this front in 2011, installing largest voluntary take-back program for those communities impacted. The fuel cells at our facility in Sunnyvale in for old mobile devices, with more than highest priority is the reemployment of the U.S.