Driving improvements with suppliers

People walking in the snow

We seek productive, ethical, and transparent relationships with our suppliers. We follow Nokia purchasing procedures when selecting new suppliers and managing relationships with existing ones. Our interactions with suppliers are transparent and open, and we do not accept or give gifts or entertainment beyond nominal value.

Our responsibility extends globally

Our supply chain comprises of three types of pro­curement:

  • Product suppliers relate to the materials that go into our products
  • Services suppliers relate to for example network planning, installation, and construction
  • Indirect suppliers mean for example  IT, fleet and logistics, finance, legal, marketing, facili­ty services.

Our manufacturing suppliers are located predominantly in Asia, but because our service suppliers are located around the world, our respon­sibility extends globally.

We integrate our high standards in our supply chain

  1. Before we start working with any supplier, we expect them to be qualified according to Nokia standards, to comply with all applicable laws and regulations, and to share the values expressed in our Code of Conduct.
  2. Suppliers are also expected to have management systems, resources, and a code of conduct that demonstrates a commitment to respecting human rights and ethical business conduct.
  3. We expect our suppliers to apply the same standards to their own suppliers, our sub-suppliers.

We monitor compliance through audits

We ensure compliance through regular and robust assessments, and work with suppliers to improve performance where needed. Our audits include:


1. Nokia Supplier Requirements audits

Corporate responsibility is treated as part of our general audits, where auditors assess the entire set of supplier requirements. These audits are typically used in the case of new, high-risk suppliers, or when there is a significant change, such as a supplier moving their manufacturing facility from one country to another.


2. In-depth audits on labor conditions and environmental management

For our existing suppliers, we conduct in-depth audits dedicated to corporate responsibility. These audits are conducted in line with the SA8000 methodology, and they include document reviews, interviews with managers and employees, and site visits, as well as inspections of facilities, production lines, and warehouses.


3. Corporate responsibility performance assess­ments through EcoVadis

We increasingly assess our suppliers through EcoVadis, where their policies, procedures, actions, and results regarding sustain­ability are assessed and scored by an independent analyst.

An overview of our Supplier Requirements on corporate responsibility is available here

We provide information about our audits in the Nokia People & Planet Report 2015

We work with suppliers to drive improvement

While we conduct assessments to ensure compliance, we realize that assessments alone are not sufficient to drive continuous improvement and competence development on sustainability. By improving the competencies and transparency around labor conditions and workers’ rights, health and safety, carbon efficiency, and conflict-free sourcing, we can better address and facilitate them.

We build the needed capacity by first training our own procurement teams on these topics. They need to be equipped with the ability to communicate our requirements to suppliers and identify potential sustainability risks.

We encourage our suppliers to report their climate impacts

All our suppliers, except those with very low environmental impact, must have a documented environmental management system (EMS) in place. For key suppliers and for those with greater impact, it must be certified to ISO 14001, and we track this compliance through audits and assessments.

The main target for our environmental work with suppliers is to encourage key suppliers to report their climate impacts and set carbon reduction targets through the CDP Supply Chain Program. This helps us to plan improvement programs with our suppliers and improve reporting of our scope 3 emissions.

In 2015, 53% of our total procurement spend disclosed information regarding their climate impacts through CDP.

We promote good labor practices

Tackling issues relating to labor conditions is a key topic on our sustainability agenda with suppliers. We put a specific focus on health and safety as our contractors can face significant risks, including installing and main­taining equipment at height or in confined spaces, and when driving long distances. We strive to ensure that our contractors are aware of the risks associated with their work and that they receive the training and equipment necessary to ensure they can work safely.

Check out the Nokia Health and Safety policy here

We work to find a sustainable solution to the issue of conflict minerals

Electronic components contain many different metals, which can include tantalum, tin, tungsten, and gold (3TG). We are concerned that the mining and trade of the minerals that these metals are extracted from is potentially fueling military conflict, related human rights violations, and environmental degradation.


Our approach

We are working to find a sustainable solution to the issue of these so-called conflict minerals to ensure responsible and conflict-free sourcing through legitimate trade and positive development in the affected regions. The basic rules are:

  1. Our suppliers must commit to only sourcing these materials from environmentally and socially responsible sources.
  2. Materials that either directly or indirectly contribute to conflict are unacceptable.

In addition, our suppliers must commit to:

  • Conduct the due diligence to their own supply chain, determine the origin of the minerals they use and commit to sourcing those materials from sources that are not fueling military conflicts or cause human rights violations and environmental degradation.
  • Source Tantalum only from smelters compliant with the Conflict-Free Sourcing Initiative‘s Conflict-Free Smelter Program (CFSP) as the coverage of CFSP compliant smelters enables to source only from conflict-free validated smelters without detrimental effects to local population.
  • Improve their practices and continue to create more awareness and build capacity amongst them through training and regular feedback.
  • Use Conflict Minerals Reporting Template to collect information from their own supply chain.

We also encourage smelters that are not yet validated as conflict free to undergo the Conflict-Free Smelter Program (CFSP) audit to ensure their conflict-free status. In 2015, 83% of the smelters identified in our supply chain were conflict-free validated or active in the validation process.
 


 


We work with suppliers to drive improvements

We provide support for suppliers through detailed feedback on their conflict minerals reporting template, and corrective action plans were agreed as necessary. We also encourage suppliers to participate in and support multi stakeholder forums and conflict-free sourcing initiatives, and we conduct dedicated information sharing webinar sessions with suppliers to further explain our conflict minerals requirements.

We also encourage our suppliers to get familiar with the following:


We collaborate with our industry peers

We work through the  Conflict Free Sourcing Initiative set up by Electronic Industry Citizenship Coalition and Global e-Sustainability Initiative to improve traceability of minerals and ensure responsible sourcing.

We participate in the development and implementation of the OECD Due Diligence Guidance for Responsible Supply Chains, and we support various initiatives that seek to support the development of traceable, responsible trade in the DRC and adjoining countries.

In the design of Nokia’s due diligence processes we have conformed to the internationally recognized due diligence framework provided by OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High Risk Areas. The details of this alignment are available in our Conflict Minerals reports. The report, which provides further information on our due diligence activities, is available here


Contact us

Concerns and violations of the Policy can be reported to Nokia through our official grievance channels, and you can contact Nokia Conflict-Free Sourcing team by email conflict_free_sourcing.team@nokia.com.