At Nokia we believe that by leveraging digital technology, businesses, industries, and society can create a more productive, sustainable, and accessible future. The handprint impact of digitalization technologies on industries and society is huge. At the same time, the footprint of digital technologies is not insignificant. The Information & Communications industry (ICT) today consumes about 4% of the world’s energy and is responsible for less than 2% of carbon emissions. We are resolute in our unwavering determination to reduce our emissions footprint – because it future proofs our business against an increasingly warmer planet, it improves the value proposition of our products and the resilience of our supply chain for our customers, and it helps reduce risks for our shareholders.

Last year we announced Nokia’s acceleration to Net-Zero across its value chain by 2040 . Today we are taking the next step in that journey. In fact, three next steps:

1.     Nokia’s 2040 Net-Zero target validated by Science Based Target initiative (SBTi)

The science on climate change is clear. We must reduce the rise in global warming to 1.5°C above pre-industrial levels this decade to have a sustainable future of the planet and people. Science-based targets provide a clearly defined pathway for companies to reduce greenhouse gas (GHG) emissions, helping prevent the worst impacts of climate change and future-proof business growth. The Science Based Targets initiative (SBTi) is a global corporate climate action organization that enables companies and financial institutions worldwide to play their part in combating the climate crisis. I am happy to say that the SBTi after a meticulous analysis of Nokia’s targets against company programs and emission data has now approved Nokia’s 2040 Net-Zero target!

Our SBTi-approved targets are as follows:

• Nokia commits to reach Net-Zero greenhouse gas emissions across the value chain by 2040.

• Nokia commits to reduce absolute scope 1, 2 and 3 GHG emissions by 50% by 2030 from a 2019 base year.

• Nokia commits to reduce absolute scope 1, 2 and 3 GHG emissions by 90% by 2040 from a 2019 base year.

At a corporate level, Net-Zero pledges now cover 78% of GDP and 76% of emissions worldwide. We are proud to be part of this community and proud to receive SBTi recognition of our 2040 Net-Zero target as well as our near term 2030 target and will continue to update you on our progress.

Targets and commitments are only meaningful if they are backed by a strong pathway and governance. Nokia has defined a Net-Zero pathway that will help it reduce emissions across its value chain. Key levers in the Net-Zero pathway include product design and innovation, low-carbon electricity, operational efficiency, carbon removals, details of which can be found here All about zero | Nokia.com. We will  publish further details of our climate transition plan in Q2. In addition, long-term incentives for Nokia employees are tied to our Net-Zero roadmap, allowing an integration of climate performance into operational performance.

2.     We aim for complete decarbonization of our own operations by 2030

Over and above the SBTi-approved targets, Nokia is announcing an acceleration of its near-term targets to decarbonize Scope 1 and Scope 2 emissions (greenhouse gas emissions from our own facilities and fleet across the world, as well as purchased electricity by 2030 from the same 2019 baseline). This builds on a strong record of transparent targets. Nokia was the first telecoms vendor to have its 2030 Science Based Target (SBT) validated by the SBTi in 2017 and was among the first 100 companies across all sectors to do so. It recalibrated its near-term targets in 2021 in line with a 1.5°C warming scenario, committing to reduce its greenhouse gas emissions by 50 percent by 2030 from a 2019 baseline. We see positive momentum in our scope 1 and 2 emissions reduction performance and today’s announcement is a recognition of that.

Scope 3 emissions continue to be a critical area for Nokia and our unwavering focus on innovation and decarbonization across the value chain continues. Last week Nokia was recognized as the overall leader in ABI Research’s competitive ranking for Scope 3 Emissions Management. This ranking assesses top telecom vendors based on their efforts and progress in reducing Scope 3 emissions and achieving Net-Zero targets. Nokia secured the top position by excelling in both the implementation and innovation criteria.

 3.     Taking the first step on carbon removal

To complement our focus on carbon emissions reduction, credible, permanent carbon removals and storage will be required to neutralize some residual hard to abate emissions to reach Net-Zero. Nokia has therefore committed to a carbon removal pilot during Q1 2025. The intent will be to purchase, receive, and retire CO2 removal credits as part of Nokia’s journey to Net-Zero. This pilot engagement with high-quality science-based carbon removal companies will help us to get to complete decarbonization of Nokia’s own real estate operations in the country of our headquarters, Finland, for 2025.

The journey to Net-Zero is a collaborative journey. We are grateful to our customers, partners, suppliers and employees who all contribute to the integration of our climate journey into our technology. Onwards!