Our industry is not a major energy user – telecommunications accounts for less than 1% of CO2 emissions in the world, but to be an environmental leader we must address energy use as broadly as we can.

We are improving the energy efficiency of our operations and reducing the climate impact by increasing the use of renewable energy. Our strategy includes changing workplace practices to reduce travel as well as improving the energy efficiency of our buildings. We have introduced a carbon offset program for air travel.

Beginning in 2003, we have carried out new energy-saving projects in our offices and sites each year. The resulting cumulative energy savings between 2003 and 2006 were approximately 3.5 % (27,000 MWh) of 2005 consumption. Our target is to find a further 6% savings from 2007 to 2012, compared to consumption in 2006. In 2007 we achieved around 1 600 MWh new savings in our facilities, but are expecting bigger numbers already in 2008 due energy simulations done in 2007. Since our building portfolio and production volumes have increased, total energy consumption per area has grown. However, the energy consumption per device volume has decreased.

In 2007 we created a global property strategy linked to the LEED (Leadership in Energy and Environmental Design) strategy. The LEED Green Building Rating System covers several aspects of environmental sustainability. We aim to achieve LEED certification for new buildings which we own and will consider the same level of environmental performance for major renovations. We have achieved LEED certification for the first time in Beijing, China in spring 2008.

Energy consumption

We have achieved facilities’ energy improvements initially by optimizing technical systems both in factories and office-buildings. Savings have typically been made by lighting, temperature and ventilation adjustments. For example, in 2007 we covered atrium glasses with reflective solar films in two offices in the United Kingdom and we changed the air conditioning at our Salo factory in Finland, including the installation of frequency converters which help to save energy by running the ventilation and pump motors optimally according to the need.

The next step will be to build on this base by initiating investment-based projects which are essential with reaching the 6% savings target of our 2006 energy use by 2012.

These initiatives may be carried out with a “Benefit sharing” model, which is already in use in some of our facilities. This model gives a technical collaborator an incentive to reduce the energy used in our buildings because it shares any resulting cost saving.

Factory energy audits

In 2007 we began a factory energy audit project at two factories to get a solid base for investment-based projects. Our intention is to cover all our factories by 2009. We used software to simulate factory energy use, which will help to identify potential energy efficiency improvements and consider proposals for action. The simulation allows us to consider alternative investments at each factory to arrive at an optimum approach. Our initial analysis suggests we may be able to save around 5% of factory energy consumption, helping us significantly towards the 6% saving target.

Renewable energy

Our global target for renewable electricity is to cover 25% of our total needs during 2007-2009, increasing to 50% in 2010.

In 2007 we achieved the 25% target by buying renewable electricity certificates (RES-E Guarantee of Origin). The 133 GWh of renewable energy reduced our CO2-emissions by 27 400 tons. That is equivalent to the emissions from a petrol-driven car (consuming 7.5 l/100 km) driving nearly 4,000 times round the globe.

See performance for full details about our energy use.

Buildings

In 2007 we created a global property strategy linked to the LEED (Leadership in Energy and Environmental Design) green building rating system.

LEED promotes a whole-building approach to sustainability by recognizing performance in the areas of:

• sustainable sites
• water efficiency
• energy and atmosphere
• materials and resources
• indoor environmental quality
• innovation and design process

The LEED certification provides independent verification that a building project meets environmental performance standards. To earn certification, a project must meet detailed requirements to accumulate credits. There are four certification levels: Certified, Silver, Gold and Platinum, depending on the amount of credits the project achieves.

We aim to achieve LEED certification for new buildings which we own and will consider the same level of environmental sustainability performance for major renovations of existing buildings.

We are working towards the LEED New Construction certification for our new office and R&D building in the Beijing Economic Technological Development Area and our first factory LEED NC project is underway in Cluj, Romania. Our first LEED Commercial Interiors project is underway in Southwood, UK.

Environmental impact assessments

We carry out an environmental impact assessment (EIA) for a new factory, for example in Cluj, Romania in 2007. Nokia has made a decision to make internal EIA for our new factories even if it is not required by the local law.

Transport and travel

We have reduced packaging sizes, which saves energy used in storage and transporting each product because it reduces the weight and we can fit more products in the same space. We first introduced a smaller sales pack for compact products in 2005 and in 2007 we further reduced the size. In 2007, we also improved the packs for larger models such as the E Series.

See packaging for more information.

Travel

Mobile communications can increasingly be part of the solution in the fight against climate change, for example by offering alternatives to traveling for meetings.

In 2007, we reviewed our own working practices, aiming to cut emissions by reducing employee travel, including substituting public transport for private cars.

During 2007 Nokia employees used teleconferencing for about 145,000 hours per month (including Nokia Networks figures in January-March).

To improve functionality and reduce the need for traveling, Nokia set up new advanced telepresence facilities at 21 key office locations with plans to roll out in total to 30 sites globally. In addition we set up 20 new more traditional video conferencing facilities and will increase the number to 220 by end of 2008.

Beginning in 2008, we will introduce measures to reduce emissions from employees’ travel to work:

• Encouraging remote and teleworking
• More shuttle buses
• Subsidies for low-emission cars and for public transport

Carbon offsets

In 2007, we introduced a voluntary carbon offset scheme for all flights on Nokia business. After a trip, the traveler can pay to offset the associated CO2 emissions and the cost will be reimbursed by Nokia. The payments will help fund a balanced portfolio of Gold standard projects around the world that focus on renewable energy and energy efficiency.