People & Planet Report 2018 About this The scope of this report compatibility with other organizations, our report is diversity information. The reports are available at The scope of this report is Nokia Group in 2018, prepared in accordance with the Global Reporting www.nokia.com/investors. including the Networks business, Nokia Technologies Initiative GRI Standards, Core-option. Our report is report and Group Common and Other. The report contains also compliant with the advanced level of the UN In addition to our own reports, we provide detailed limited information on our undersea cables business, Global Compact. The Global Reporting Initiative information through various external reports. In Alcatel Submarine Networks (ASN), and our antenna index is available as a separate PDF document 2018, we again publicly reported our climate impacts systems business, Radio Frequency Systems (RFS). at www.nokia.com/sustainability and some key to CDP – a leading global organization working with Both ASN and RFS are reported in Group Common sustainability data is included as a separate section shareholders and companies to disclose the greenhouse and Other. Employee-related data presented at the end of this report. gas emissions of major corporations. More information throughout the report covers employees included on the external ratings is available at www.nokia.com/ in our central HR database, coverage of which was Our selected key sustainability indicators have about-us/investors/reports-and-filings. 95% in 2018. For more information on our financial been assured by an independent auditor of Nokia, results, operations, and reporting structure, please PricewaterhouseCoopers Oy. * Financial and operational information in this report should be read in conjunction with the information see www.nokia.com/financials. ­provided­in­our­interim­reports­and­annual­financial­ Availability of this report reports, as well as the risk factors and forward-looking For an explanation of how we chose what to include This report was published in May 2019 and it is only statements included in such reports. in this year’s report, please refer to the section on available in digital format. We have also published materiality. supplementary information related to this report online at www.nokia.com/sustainability. We have Unless otherwise indicated or evident from the published annual corporate responsibility reports context, we generally provide information for the since 1999 and the reports are available in digital year 2018, with comparisons to the year 2017. format on our website from as far back as 2003 at our report archive. In trend reporting we use the term “Comparable Your feedback combined company” when we refer to information Sustainability and corporate responsibility topics are We welcome your views and questions on our activities and including combined Nokia Group and former Alcatel also discussed in our official annual reports, including our performance. If you would like to share your opinions, Lucent data prior to the acquisition of Alcatel Lucent the annual report on Form 20-F that is filed with please contact us at [email protected] in January 2016. the US Securities and Exchange Commission in the United States*. The Board Review of 2018 Annual Reporting frameworks and assurance Accounts includes non-financial information as Find us on social media In our reporting, we are committed to expanding required by the Finnish Accounting Act implementing Connect with Nokia on Twitter, LinkedIn, Instagram, our transparency and our coverage. To help ensure the EU Directive on disclosure of non-financial and Glassdoor and Facebook. Follow our blog. Nokia People & Planet Report 2018 Nokia today Our approach Connectivity Environment Integrity People Together Key data Assurance 2 1.0 Nokia today 4 5.5 Respecting the right to privacy and freedom of expression – preventing the misuse of technology 102 2.0 Our approach 7 5.6 Responsible sourcing 106 Contents 2.1 Letter from the President and CEO 8 5.7 Combatting modern slavery in the supply chain 113 2.2 Sustainability highlights and challenges in 2018 10 5.8 Materials traceability and conflict minerals 115 2.3 Our sustainability priorities and impacts 12 5.9 Data privacy and security 117 2.4 Our sustainability targets and performance 20 2.5 Managing sustainability 33 6.0 Respecting our people in everything we do 120 2.6 Our recognitions and awards 36 6.1 Highlights in 2018 121 2.7 Our economic impact 37 6.2 Our commitments, targets and performance 123 2.8 Innovation and sustainability 40 6.3 Who we are 125 6.4 Making Nokia a great place to work 126 3.0 Improving people’s lives with technology 42 6.5 Human capital development 128 3.1 Highlights in 2018 43 6.6 Ensuring decent working conditions and fair employment 132 3.2 Our commitments, targets and performance 45 6.7 Diversity, inclusion and anti-discrimination 137 3.3 Connecting people and things 47 6.8 Strengthening our health and safety performance 142 3.4 Technology that makes a difference 52 7.0 Making change happen together 146 4.0 Protecting the environment 54 7.1 Highlights in 2018 147 4.1 Highlights in 2018 55 7.2 Our commitments, targets and performance 149 4.2 Our commitments, targets and performance 57 7.3 Making change happen together 150 4.3 Circular economy 60 7.4 Supporting our customers’ sustainability goals 151 4.4 Sustainable product design and materials 63 7.5 Collaborating with NGOs 153 4.5 Our products and networks – energy efficiency 7.6 Working with governmental and multilateral organizations 158 and carbon emissions 68 7.7 Collaboration with universities, cities, and other industries 162 4.6 Our own operations – energy efficiency and carbon emissions 73 8.0 Key data and reporting principles 164 4.7 Waste in our own operations 77 8.1 Data reporting principles 165 4.8 Circular practices and products 78 8.2 Environmental data 170 4.9 Water 80 8.3 Social, ethics and management systems data 177 8.4 Supply chain management data 182 5.0 Conducting our business with integrity 83 8.5 Financial data 184 5.1 Highlights in 2018 84 5.2 Our commitments, targets and performance 86 9.0 Independent practitioner's assurance report 185 5.3 Ethical business and corporate governance 90 9.1 Independent practitioner's assurance report 186 5.4 Addressing human rights 101 Nokia People & Planet Report 2018 Nokia today Our approach Connectivity Environment Integrity People Together Key data Assurance 3 1.0 Nokia today Nokia today We create the technology to connect the world. We develop and deliver the industry's only end-to-end portfolio of network equipment, software, services and licensing that is available globally. Our customers include communications service providers who use our solutions to support 6.1 billion subscriptions, as well as enterprises in the private and public sector that use our network portfolio to increase productivity and enrich lives. Through our research teams, including the world-renowned Nokia Bell Labs, we are leading the world to adopt end-to- end 5G networks that are faster, more secure and capable of revolutionizing lives, economies and societies. Nokia adheres to the highest ethical business standards as we create technology with social purpose, quality and integrity. Nokia People & Planet Report 2018 Nokia today Our approach Connectivity Environment Integrity People Together Key data Assurance 4 1.0 Nokia today Nokia today We are enabling the infrastructure technologies that will increasingly transform the way Organizational structure for 5G and the Internet of people and things communicate and connect. and reportable segments In 2018 we had organized our networks-oriented Things and shaping the future Our presence and employees in 2018 businesses into five business groups: Mobile In 2018 we had six business groups, with operations Networks, Fixed Networks, Global Services, IP/ of technology to transform the in Europe, the Middle East & Africa, Greater China, Optical Networks, and Nokia Software, and kept human experience. North America, Asia-Pacific, and Latin America. our driver of future innovation and licensing, Nokia At the end of 2018, we employed approximately Technologies, as a separate, sixth business group. We are a leader in mobile and fixed network 101 000 people, out of which more than a third As of January 2019, we have seven main business infrastructure with the software, services, and worked within our research and development (R&D) groups: Mobile Networks, Fixed Networks, IP/Optical advanced technologies to serve customers in in Europe, North America, and Asia and around 0.8% Networks, Global Services, Nokia Software, Nokia approximately 130 countries around the world. We in production. You can read more on our employees Enterprise, and Nokia Technologies. Nokia Bell Labs are driving the transition to smart, virtual networks in the Who we are section. leads the company’s research and development. and connectivity by creating one single network for For more information see our financial report at all services, converging mobile and fixed broadband, We closed 2018 delivering net sales of EUR 22.6 www.nokia.com/investors. IP routing and optical networks, with the software billion. We continued to make significant targeted R&D and services to manage them. Our research investments, a bedrock of our success in innovation, scientists and engineers continue to invent new with R&D expenditures equalling EUR 4.6 billion in 2018. Net sales by business 20181 Net sales by region 2018 3 1 Nokia’s Networks businessEUR 20 121m (-2%) 2 Ultra Broadband EUR 8 692m (-2%) 1 A 1 Asia-Pacifi c EUR 4 081m (-3%) Networks 6 2 Europe1 EUR 6 489m (-5%) B Global Services EUR 5 719m (-2%) 3 Greater China EUR 2 165m (-14%) C A C IP Networks and EUR 5 719m (-0%) Applications 4 Latin America EUR 1 380m (+8%) 2 Nokia Technologies EUR 1 501m (+9%) 5 2 5 Middle East & Africa EUR 1 874m (-2%) 6 North America EUR 6 574m (+3%) B 3 Group Common and EUR 1 021m (-8%) 4 1 Other 3 1All Nokia Technologies IPR and Licensing net 1Includes net sales to other segments.