Nokia 2012 Annual Report Download - page 78

Business travel. Nokia’s C02 emissions from air travel were 38 500 tonnes in 2012 which is a 54%
reduction from 2011.
Reducing waste. In 2012, Nokia produced a total of 31 400 tons of waste, a 30% reduction from 2011.
Water usage. Water is not a significant environmental issue for our own operations, but used mainly for
sanitary and catering purposes, and in gardening and facilities management, e.g. cooling towers.
Production processes use relatively small amounts of water, under 1 000 liters per year in each factory.
In 2012, we withdrew 1 092 mega liters of water for use in our facilities. Nokia Group as whole
withdrew 1 674 mega liters of water.
Suppliers
For over a decade Nokia has required its suppliers to adhere to strict ethical and sustainable business
practices. These have been laid out in the Nokia Supplier Requirements, enforced through contractual
agreements and verified by assessments. In 2012, Nokia also published its Supplier Code of Conduct.
This Code, available on our website, establishes the basic principles for business conduct with Nokia.
It is based on Nokia’s Supplier Requirements, which suppliers regardless of location and size must
fulfill.
To monitor compliance and performance, Nokia uses a wide range of approaches and means. External
risk tools help to point out potential environmental, ethical, health and safety and labor risk areas in
regards to the industry or the countries where we or our suppliers operate. Supplier self-assessments
again provide an indication of the supplier’s own understanding of its level of compliance. Regular on-
site assessments to supplier sites on the other hand, are conducted for a variety of reasons, including
identified risk, non-conformance or strategic importance. At the end of 2012, altogether 345 supplier
facilities had been risk self-assessed in relation to labor, ethics, health and safety and environmental
practices (292 in 2011 and 26 in 2010). This accounts for around 90% of our hardware and mechanics
estimated business value for 2012. In addition, 23 Nokia Supplier Requirements on-site assessments
and 10 Environmental and Ethical on-site in-depth assessments were carried out.
Internally environmental, ethical, health and safety, as well as labor practices have been integrated into
Nokia sourcing’s daily business operations including supplier selection and contracting, relationship
development, procurement decisions and steering meetings. Sustainability key performance indicators
and targets are part of the supplier performance review. These specific KPIs have focused throughout
the years on e.g. environmental management system status, code of conduct implementation,
transparency and communications, environmental impacts and recently labor practices and health and
safety issues. All active hardware suppliers are requested to report and results are regularly reviewed.
In recent years, Nokia has also taken continuous action to ensure that our products are manufactured
from ethically sourced materials. We do not tolerate any activity in our supply chain that fuels conflict,
violates human rights or leads to serious environmental degradation. The issue is currently especially
acute with the extraction and trade of minerals in Democratic Republic of Congo (DRC) and
surrounding countries. During 2012 Nokia focused on validating the suppliers’ due diligence activities
towards conflict-free sourcing, and ensuring that its own due diligence process remains in line with
international requirements.
There are many sustainability challenges that might arise from a global supply chain consisting of
thousands of suppliers. Clear requirements and different approaches and training programs to monitor
performance and compliance are essential. For the sake of a sustainable and continuous business
development it is important to identify possible risks and improvement areas. In case of any non-
compliance against Nokia’s requirements, suppliers are requested to analyze possible root causes and
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