Nokia 2010 Annual Report Download - page 68

Suppliers—Corporate Responsibility
Open communication, good relationships and transparency are of key importance for us in ensuring
that the highest standards of social and environmental responsibility are met within our supply chain.
We work with many suppliers and our comprehensive set of Nokia Supplier Requirements provides
clear guidance on what is expected from them.
To monitor supplier performance against our requirements and promote sustainability improvements,
we conduct supplier selfassessments and onsite assessments. The average result of 26 suppliers’
selfassessments indicates a corporate level score of 89.7% and facilitylevel score of 89.9%, where a
lower percentage score indicates a higher risk that the supplier is falling short of expectations and
standards. In addition during 2010 we conducted 31 onsite assessments in regards to Nokia Supplier
Requirements. We also identified some suppliers with potential risk and carried out 6 indepth labor,
health and safety and environmental assessments. In areas where risks were identified, suppliers
have been requested to take corrective actions and we follow up on their improvements.
To drive sustainable changes, assessments are only one of the tools we use. Supplier training,
facetoface meetings and development programs are equally important. We also use a set of key
environment and social performance indicators to generate sustained improvements. One of the
performance indicators we track relates to the Code of Conduct policy of our suppliers. For 2010, we
set a target to have visibility of the Code of Conduct policy and its implementation at all of our direct
hardware suppliers. We found that 92.9% of our suppliers met our requirements. Suppliers not
meeting our expectations have been requested to make improvements and we follow up on their
improvements.
One of our aims is also to reduce the environmental impact of our products throughout the life cycle.
For the supply chain, this means that we focus on the suppliers that account for the greatest
environmental impact and those suppliers which are strategically significant for us. During 2010
71.9% of these suppliers had company level reduction targets for energy, carbon dioxide (equivalent),
water and waste in place and monitored. Over the longer term, we would like to see that all of our
suppliers have reduction targets in place.
To drive systematic improvements in environmental performance, we also require suppliers to have
Environmental Management Systems in place. In 2010, 91.7% of our direct hardware suppliers’ sites
serving Nokia were certified to ISO 14001.
In 2010, to obtain a broader overview on working conditions at our suppliers, we introduced four
new metrics related to health, safety and labor issues. The metrics concern occupational injuries,
employee attrition, the absence rate due to sick leave and overall employee satisfaction. We piloted
these metrics with eight identified priority suppliers and during 2011 our aim is to continue with a
comprehensive implementation across more of our supplier base.
Nokia strictly condemns any activities that benefit militant groups or fuel conflict. We have banned
the use of ‘conflict metals’ and take continuous action to ensure that metals from conflict areas do
not end up in our products. Since 2001, we have demanded written assurance from our suppliers to
ensure our products do not have Tantalum derived from Coltan originating in the conflict areas, and
we have expanded this to cover other metals as well. Furthermore, we request key suppliers to map
their supply chains for the metals in their components back down to smelter and source.
Metal traceability is an issue that concerns the whole electronics industry, as well as other industries
using these metals. We are actively participating in the industry initiatives (EICC and GeSI) to improve
the overall traceability of metals and minerals, even though we do not mine or even buy metals
directly. Recent developments, such as the smelter audit validation processes by EICC and GeSI, and
the conflict metal legislation in the United States, are encouraging. An effective and sustainable
solution requires that all companies and industries using metals follow the same rules and apply the
same practices.
67