Our approach
Our approach to sustainability is built on our company’s purpose – to create technology that helps the world act together. Environmental, Social and Governance criteria (ESG) represent the sixth pillar of our corporate strategy, where we aim to make it a competitive advantage for Nokia and therefore our customers and partners.
Sustainability is integral to our technology vision 2030, technology strategy as well as Nokia’s business group product and operational strategies.
All of these are underpinned by our unwavering focus on adherence to high standards of integrity and security that build trust and help create the capabilities needed for a more productive, responsible, sustainable and inclusive world.
Our sustainability strategy
The five ESG focus areas
Nokia’s sustainability strategy aims to ensure we maximize our impact in the ESG areas most significant to our company. It is implemented through our business groups and consists of five focus areas: Environment (climate and circularity), Industrial Digitalization, Security and Privacy, Bridging the Digital Divide, and Responsible Business.
We strive to create value and, where possible, exceed stakeholder requirements and expectations while complying with increasing regulatory requirements and stakeholder expectations. Our current sustainability strategy focuses on where we believe we can have the greatest impact on ESG risks and opportunities.
Environment (climate & circularity)
In Environment, we emphasize two areas: climate and circularity. For climate, we look to be the leader in energy efficiency in silicon, software, and systems, providing the networks and operations skills to scale smart energy solutions. We also intend to accelerate our first mover ambition in energy efficiency in 5G-Advanced and 6G through early engagement in standardization and ecosystem development. For circularity, we focus on opportunities to promote hardware circularity and manage the sourcing and reuse of key source materials.
In Environment, we emphasize two areas: climate and circularity. For climate, we look to be the leader in energy efficiency in silicon, software, and systems, providing the networks and operations skills to scale smart energy solutions. We also intend to accelerate our first mover ambition in energy efficiency in 5G-Advanced and 6G through early engagement in standardization and ecosystem development. For circularity, we focus on opportunities to promote hardware circularity and manage the sourcing and reuse of key source materials.
Industrial Digitalization provides the opportunity to sustainably transform physical industries and cities through digitalization and connectivity. Our offering for industry and cities can support decarbonization, resource efficiency and improved safety.
Security and Privacy are together positioned as cornerstones of our product proposition. Product development follows our “Design for Security” methodology, and Nokia’s security team partners with our customers to build and maintain secure networks, compliant with national regulations for critical telecom infrastructure.
In Bridging the Digital Divide, we use our broad product portfolio and non-terrestrial communication networks to connect the unconnected and underserved and invest in partnerships to support digital skills building.
In Responsible business, we strive to do business ethically and responsibly, ina manner aligned with our proclaimed corporate values. We collaborate closely with customers and suppliers to engage on systemic issues related to the environment, the mitigation of technology misuse, (and advocating for responsible AI principles, ethics, human rights and working conditions. Responsible business at Nokia includes Supply Chain, Human Rights, Ethics and Compliance.
Our handprint and footprint
We believe the technology we provide enables environmental and social benefits to individuals, industries, communities and economies that can outweigh potential negative impacts. These benefits are the handprint of digitalization and connectivity. We have both a social and an environmental handprint. We maximize this handprint.
We must, however, continually strive to minimize any potential negative impacts of technology. This is our “footprint”. We have both an environmental and a social footprint. We collaborate throughout our value chain to continually minimize our footprint.
These two aspects of our approach are underpinned by responsible and ethical business practices. We strive to be a trusted, ethical company that our employees, customers, suppliers, partners, governments and investors are proud to work for and with. As part of our responsible approach, we aim for:
- Robust practices, procedures and policies that minimize risk
- Management accountability for sustainability and responsibility throughout the organization
- Trust, accountability and ethical behavior as foundations on which we operate
- ISO-certified and audited management systems
- A robust people strategy and mature processes to attract, retain and develop talent.
Enabling and engaging our organization and value chain
In 2023 we continued sustainability enablement across our global organization through the ESG Community of Interest, a collaborative innovation platform for knowledge building particularly targeting employees working with customers. During 2023 the community organized sessions on energy efficiency, bridging the digital divide, reporting, sustainable sourcing, circularity and ESG standards.
Governance and Materiality
Our governance model
Sustainability issues are reviewed regularly at all levels of the company. We will continue to strengthen our governance structures and the processes we have established to manage ethical business practices and corporate responsibility, reflecting the significant change in our mode of operation implemented in the company during 2023.
Materiality
As part of our strategy refresh and in line with good practice, we completed a materiality impact assessment in Spring 2022 with an external consultancy. The results of this assessment are based on desktop research, interviews and a survey conducted with internal and external stakeholder representatives (including employees, customers, investors, suppliers, partners, NGOs and academics), as well as insights from sustainability experts. The new materiality matrix was reviewed by the Group Leadership Team and the Board of Directors.
The diagram below shows the top right quadrant of our new materiality matrix. The magnified top right quadrant shows the topics that are all considered currently most relevant to our business and to stakeholders, the economy and the environment. The top 5 most material topics for Nokia are:
- Climate impact through products
- Environmental impact through products and enabling transformation in other industries
- Ethical business practices and ethical use of new technologies
- Privacy and security
- Responsible sourcing
Sources of input for the materiality work included:
The materiality matrix was reviewed by the Group Leadership Team and the Board of Directors and consists of 14 grouped topics:
- Climate impact through products and enabling transformation in other industries
- Ethical business practices and ethical use of new technologies
- Privacy and security
- Responsible sourcing
- Health and safety of employees
- Circularity
- Impact innovation
- Digital inclusion
- Human rights
- Diversity and inclusion
- Employees’ skills
- Nokia’s own environmental impact
- Community participation
- Biodiversity
Climate, ethical business practices, and how Nokia’s products can enable change in other industries, cities and society continue to be among the most material topics. The most significant growth in importance can be seen in privacy and security, responsible sourcing and circularity.
In Q4 2023 we completed our double materiality assessment in preparation for the EU Corporate Sustainability Reporting Directive (CSRD) requirements and related standards. The results of that exercise will provide the basis for our sustainability efforts in 2024.
Sustainability reporting
Nokia’s People and Planet sustainability report is published annually. The scope of the 2023 sustainability report covers the Nokia Group. In our reporting, we are committed to expanding our transparency and our coverage. Our report is prepared in accordance with the GRI Standards. As part of our reporting, we also recognize other sustainability-reporting frameworks, such as SASB Standards and the UN Global Compact. Our selected key sustainability indicators have been assured by Nokia’s independent auditor, Deloitte.
We have published annual corporate responsibility reports since 1999 and the reports are available in digital format from as far back as 2003 at our report archive.
Download the People & Planet 2023 report here. Our index on key ESG frameworks can be found on pages 110-126.
You can also watch this video about some key achievements and actions in 2023.
Separately, we are a limited partner in the investment company
NGP Capital who incorporate ESG principles across three levels of the venture ecosystem. Further information on their approach can be found here.
Our priorities and targets
We set short-, medium- and long-term sustainability targets and report progress on all of them annually in our sustainability report. The status of these targets at the end of 2023 is shown in the following table.
In 2023, we had 31 targets. Our targets for 2024 and beyond are presented after the 2023 achievements.
Ratings and recognitions
We take part in a number of ESG-focused ratings, indices and benchmarks. While all such initiatives have a slightly different focus, generally they are used by stakeholders such as customers, investors and civil society to assess a company’s performance in a broad range of sustainability related topics.
In July 2024, FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) again confirmed that Nokia has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements to become a constituent of the FTSE4Good Index Series.
In May 2024 we were again awarded a Platinum EcoVadis Medal. This places our company among the top 1 percent of companies assessed by EcoVadis, with especially high scores for environment and sustainable procurement.
In March 2024 we were once again named by Ethisphere as one of the World’s Most Ethical Companies®. Nokia is one of three companies in the telecommunications sector and the only Finnish company to be recognized in 2024.
In February 2024 we were ranked as A- and Leadership status by CDP for our work on and disclosure of climate change data. In March 2024, we received a score of A from CDP Supplier Engagement Rating (SER). It evaluates companies’ work with suppliers to reduce emissions and lower environmental risks in the supply chain.
In November 2024 Nokia was assessed by Sustainalytics to be at low risk of experiencing material financial impacts from ESG factors. In January 2024 Nokia was included in Sustainalytics’ 2024 Top-Rated ESG Companies List.
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In October 2023, Nokia was rated ‘Prime’ by ISS ESG Corporate Rating.
In August 2023, we received a rating of AAA (on a scale of AAA-CCC) in the MSCI ESG Ratings assessment.
In March 2023 we were recognized as the leading European hardware company in the World Benchmarking Alliance’s Digital Inclusion Benchmark, where we were placed 24th out of the 200 companies assessed. The benchmark measures how the world’s most influential technology companies are helping to advance a more inclusive digital society.
In March 2023 we were certified as a ‘Nasdaq ESG Transparency Partner’ for our engagement in market transparency and in raising environmental standards.
Bloomberg has given Nokia a strong score in its Gender Equality Index (GEI) – the fifth time in a row that we are included in this index. In the 2023 Bloomberg GEI, Nokia achieved a Bloomberg GEI overall score of 83.03 percent – our highest score so far and considerably higher than the tech industry’s average score of 72.36 percent.
Other awards and recognitions
In 2024 we received the e& Sustainability Award in their annual Partner Recognition Event, and were also recognized by TIME magazine as one of the top 500 sustainable companies in the world.
In addition to customer recognitions, we have won several prestigious awards (iF Design Awards and Red Dot Design Award) for our sustainable packaging design, demonstrating peer recognition.
We are a member of RE100, which gives us a framework to report our renewable energy related activities transparently. Nokia was selected as the winner of the Best Newcomer category in the 2022 RE100 Leadership Awards.
RE100 Leadership Awards 2022
Engaging with stakeholders
We work with a range of stakeholders and look for where we can increase collaboration and respond to requirements in building sustainable solutions. Collaboration is key to moving the needle on many sustainability topics – from protecting the environment to bridging the digital divide and improving security.
Supporting our customers’ sustainability goals
We work with our customers, both communication service providers and enterprises, on sustainability topics ranging from energy and materials efficiency to supply chain transparency, human rights and community involvement. We emphasized this collaboration in 2023 by establishing two more ESG Customer Advisory Councils covering Asia and India, and the Middle East and Africa regions, complementing the existing council for Europe.
We also engage with the broader ecosystem, for example on climate issues. In December 2023 at COP28 in Dubai, at the launch event commemorating the inauguration of the Finland Pavilion, we presented the importance of digital solutions in accelerating the response to climate change and their role in supporting hard-to-abate industries. To further underline the critical role of digital solutions in decarbonization, Nokia brought together representatives of the ICT sector together with the International Telecommunication Union (ITU) to outline commitments to decarbonizing digital and accelerating the green transition.
The following table summarizes how we engage with key stakeholders.
Our approach
We work with our customers to continue to improve the energy efficiency and sustainability of our products. We collaborate to resolve environmental, ethical, and social issues, and look at ways in which technology can enable positive changes.
Key topics raised in 2023
GHG emissions reduction, energy and materials efficiency, climate actions, circular products and services, recycled materials, value chain, responsible operations, inclusion and diversity, human rights, nature.
Our approach
Our people are our greatest asset and we aim to build a culture of trust, respect, diversity and opportunity for all, bringing to life our Nokia essentials open, fearless and empowered in a vision to create an unbeatable people experience.
Key topics raised in 2023
New people vision, Nokia essentials, wellbeing, health and safety, future ways of working and flexibility policies, inclusion and diversity, leadership development, technical career development, ethical business practices.
Our approach
We have regular discussions and interactions with our shareholders and the investor community on ESG topics including our approach and policies, and our opportunities, risks and targets.
Key topics raised in 2023
Climate targets and actions, governance and energy efficiency of our products, responsible sourcing, labor and human rights, ESG reporting, diversity and inclusion and social impact.
Our approach
We work with suppliers to drive transparency, sustainability and good ethical and business practices in our long and often complex supply chain.
Key topics raised in 2023
Inclusion and diversity, modern slavery, ethical recruitment practices, responsible minerals sourcing, climate change, circular materials and health and safety.
Our approach
We contributed our experience and expertise, engaging and leading discussions in organizations who are developing best practices for the industry and advising policymakers across the regions. These included the European Round Table for Industry (ERT) and DIGITALEUROPE in Europe, Samena Council in MEA, Technology Council of Australia, TIA and USChamber in the US, CII (Confederation of Indian Industry) in India. We collaborated with think tanks such as the European Council on Foreign Relations (ECFR) and the German Marshall Fund to promote informed debates on policies beneficial for society
Key topics raised in 2023
Measurement methodology standards for 5G radio and circularity-related standards for telecommunications products and networks in ETSI and ITU-T. Responsible use of Artificial Intelligence standards in ISO, CEN/CENELEC, and various national committees. Energy saving features in 3GPP.
Our approach
We collaborate with leading academic institutions in Europe, the United States and Asia on research topics critical to our future business. We also participate in training programs, innovation events and recruit top talent from these institutions.
Key topics raised in 2023
6G, Artificial Intelligence/ Machine Learning, industrial IoT, quantum technologies, optics, photonics and cybersecurity.
We are also leading the European lighthouse project on 6G sustainability SUSTAIN 6G
Our approach
We engage with stakeholders such as community groups and NGOs. We work with NGOs to support programs which have a long-term impact and create a sustainable future platform in the target communities.
Key topics raised in 2023
Digital skills building, empowering diverse groups providing the potential for equal access to opportunity, education, healthcare and the job market. Environmental protection and biodiversity.
Our approach
We work with cities and communities to drive digitalization and smart sustainable development.
Key topics raised in 2023
Connectivity and digitalization, 5G use cases, responsible AI, public safety and health, data security and privacy, green economy transition and environmental monitoring.
Our approach
We contribute to policy debates fostering a connected society and the adoption of new technologies around the world. Nokia is active in the European Global Gateway Initiative and also promotes transregional cooperation on technology, and our leadership actively support the EU–US Trade and Technology Council, the EU–India Trade and Technology Council and the collaboration between the EU and Latin America.
Key topics raised in 2023
Digital and broadband policies, regulation of emerging technologies (AI), sustainability topics, including supply chain due diligence and human rights policies that encourage innovation, broadband rollout and adoption and the digital transformation of society and industry (including spectrum for broadband); policies for trusted and reliable international connectivity, for the security of digital infrastructures, (including6G roadmaps),
Read how Nokia and UNESCO’s new framework helps governments to use technology to make people’s lives better
Nokia and the United Nations Sustainable Development Goals
The United Nations Sustainable Development Goals (SDGs) and their targets remain a key framework for our sustainability work and for many of our customers and partners. Goals 8, 9 and 13 are the most relevant to our business, but we believe that digitalization and enhanced connectivity will continue to play an important role in accelerating and achieving all 17 SDGs.
Climate change remains the most significant sustainability challenge for our business and for the planet. Through the technology we provide, we help customers, other industries, economies and individuals decarbonize through the digitalization of industrial processes and society, so they become more predictive and productive, with reduced emissions.
To minimize our own footprint, we focus on both climate and circularity, where we aim for leadership in the energy efficiency of our products and circular practices. In early 2024, we again received a score of A- from CDP for our work and disclosures on carbon emissions.
8. Promote inclusive and sustainable economic growth, employment and decent work.
We connect the unconnected through a broad product portfolio that enables greater digital inclusion across countries globally. We deliver broadband to urban and rural communities through fixed and wireless networks and to businesses and educational institutions through private wireless and campus networks.
In 2023 we deployed our Rural Connect solution in the Middle East and Africa to connect the unconnected in remote areas of sub-Saharan Africa. Service providers can use Rural Connect to bring mobile connectivity to remote areas with a cost-optimized radio site solution with high energy efficiency.
Nokia is collaborating with UNICEF to bridge the digital divide by helping to improve digital education and training in schools in select parts of Senegal, West Africa and launched its new UNICEF program in Vietnam
9. Build resilient infrastructure, promote sustainable industrialization and foster innovation.
Nokia products and solutions bring improved efficiencies, productivity and digitalization to industries, providing platforms for innovation and decarbonization.
For example, in 2023 Nokia partnered with IT provider DXC Technology to launch a managed secure private wireless network and digitalization platform solution that helps industrial enterprises digitally transform their operations.
We are also working with US energy provider Xcel Energy to help modernize grid operations. The project will include Nokia private wireless network technology, helping support secure, reliable data connectivity and new levels of automation as well as a growing mix of renewable power sources.
13. Take urgent action to combat climate change and its impacts.
We focus on constantly improving the energy and material efficiency of our products across our portfolio. This helps our customers – both communication service providers and enterprises – minimize their environmental footprints.
In 2023 we announced a new update to our optics portfolio with PSE-6s, the sixth-generation super-coherent photonic service engine, which can reduce network power consumption in optical transport by up to 40% per bit compared to the PSE-V.
Nokia has also joined with Orange under the UNIDO-run (United Nations Industrial Development Organization) Switch to Circular Economy Value Chains initiative. The project aims to support corporates to accelerate their circularity efforts, including with their partners in developing countries. Nokia works closely with Orange to further develop circular approaches in network equipment, including setting up a new refurbishment and repair center in Egypt, which will extend the lifetime of Nokia products.
In 2023 we also delivered Habrok massive MIMO radios which offer improved energy efficiency in wireless access networks compared to previous generations.
