In 2008, we continued to look for possibilities to reduce the environmental impact of our devices and operations at each stage of the product life cycle. Our focus areas are materials used, energy efficiency, the manufacturing process and recycling. We also introduced several new mobile services advocating sustainable lifestyle.

Energy saving in devices

Over the last decade, we have reduced the average no-load power consumption of our chargers by over 80%, and over 95% in our best-in-class chargers. We are making good progress in reaching our target of reducing the no-load power used by our chargers by 50% from the 2006 level by the end of year 2010.

Nokia was the first mobile manufacturer to put alerts into devices encouraging people to unplug their chargers, and we are rolling these alerts out across our device range. Based on a voluntary agreement under the EU's pilot project on Integrated Product Policy (IPP), Nokia together with other manufacturers created and took into use a Mobile Device Charger Energy rating. This 0–5 star rating is based on the charger's no-load power consumption and is shown on a label on the product, with the aim of informing consumers about more energy-efficient chargers and encouraging the use of more energy-efficient models. All new Nokia chargers meet the criteria of voluntary agreements such as the EU Code of Conduct and the US Environmental Protection Agency's Energy Star, as well as the highest four- and five-star criteria of the EU IPP rating.

Materials in Nokia devices and packaging

All Nokia mobile devices worldwide are fully compliant with the EU's RoHS directive (Restriction of the use of certain hazardous substances in electrical and electronic equipment). We have also phased out PVC from all Nokia's mobile devices and enhancements. We are currently phasing out the use of brominated and chlorinated flame retardants and Antimony Trioxide. The device leading this phase-out, the Nokia 7100 Supernova, was launched in November 2008.

In early 2008 we started shipping the Nokia 3110 Evolve, the first mobile device whose bio-covers use 50% renewable materials, thus reducing the amount of fossil fuels used to manufacture it. Nokia's high-efficiency charger, the AC-8, was launched with the Nokia 3110 Evolve, and is now shipping in volumes with many of our devices. The packaging for the Nokia 3110 Evolve contains 60% recycled materials, doubling the amount of recycled content typically used, and due to its smaller size also consumes substantially less cardboard.

We continue to improve our packaging solutions. The use of renewable paper-based materials has been increased to over 95% of total packaging materials. From August 2008 the sales packages of all new devices have been smaller than their earlier equivalents. From February 2006 to the end of 2008, we reduced the weight of packaging materials and user guides used for our most affordable devices by over 60%, which adds up to 100,000 tons of paper saved. Smaller and lighter packaging has also reduced the need for transportation. What's more, all of these environmental savings have translated into significant monetary savings.

Promoting sustainability through services and software

We have developed eco services for our phones to help people to make sustainable choices and consider the environment in their everyday lives. A variety of eco services are freely downloadable in Nokia devices.

In December 2008, we introduced the beta version of Green Explorer, a free service designed to promote sustainable travel. The service is a combination of travel guide content and tips about sustainable travel shared by the users themselves.

We also launched the Eco Catalogue, later known as the Eco zone, as part of the Nokia Download! offering. This service can already be used with 200 million Nokia devices. The Nokia Eco zone is a mobile destination where owners of Nokia devices can view and download a range of eco content, from wallpapers and links to interactive applications. In 2008, we also introduced as part of our offering the we:offset, the world's first mobile application for offsetting CO₂ emissions from air travel.

Recycling Nokia devices

Between 65% and 80% of a Nokia mobile device can be recycled. To utilise this potential for reduced environmental impact, we participate in collective recycling schemes with other equipment manufacturers in Europe and Australia; we have our own collection points for recycling used mobile devices and accessories in approximately 85 countries; and we engage in local recycling awareness drives with retailers, operators, other manufacturers and authorities around the world. These drives aim at increasing consumer awareness of recycling and their responsibility for bringing back their used devices for responsible recycling. Additionally, we work with qualified recyclers around the world to ensure proper end-of-life treatment for obsolete devices.

During 2008 Nokia executed voluntary local recycling drives to raise awareness in 30 countries. One of our most successful voluntary co-operative recycling initiatives is the Green Box campaign in China, which was initiated with China Mobile and Motorola in 2006. During 2008, the collection volumes from the Green Box campaign exceeded 42 tons, which equals to approximately 470,000 devices.

In 2008, Nokia continued to participate in financing the collection and treatment of electronic waste in different EU countries, in accordance with the requirements set by National Implementation of the European Union's WEEE directive (Waste Electrical and Electronic Equipment). There are now national collection networks in operation to collect and treat all electronic waste from households. During 2008, the EU's directive 2006/66/EC on batteries initiated the national set-up of similar collection networks for portable batteries. In addition, Nokia has during 2008 increased communication on recycling on the country level with the introduction of localised recycling information on Nokia's Internet pages.

Nokia facilities: energy, emissions and environmental certifications

In 2008, Nokia's facilities consumed 69 GWh of direct energy and 592 GWh of indirect energy. Direct energy refers to the usage of gas and oil in Nokia's facilities, while indirect energy usage is composed by the consumption of electricity, district heating and district cooling. This energy consumption caused 14,700 tonnes of direct and 218,000 tonnes of indirect greenhouse gas (CO₂-e) emissions. In addition to the CO₂-e emissions caused by energy usage, direct greenhouse gas emissions include the global warming potential caused by HFC-refrigerants expressed in terms of CO₂-e. Without Nokia's purchase of certified green energy, the indirect emissions would have been 46,700 tonnes bigger.

Nokia has a corporate-level ISO 14001 certificate in place for all manufacturing sites.

Suppliers

During 2008, we continued to promote environmental and social responsibility in the supply chain.

From the environmental perspective, we increased the visibility of suppliers' environmental performance and target setting, focusing on four key areas: energy consumption, carbon dioxide (CO₂) emissions, water consumption and waste generation. Of our suppliers that together account for 69% of our overall hardware expenditure, 82% have reduction targets for energy, CO₂, water and waste in place and monitored. This monitoring is continuing in 2009 as part of our ongoing cooperation with suppliers.

We also monitored our suppliers' site certification to Environmental Management System ISO14001.

At December 31, 2008, 91% of our direct suppliers' sites serving Nokia were ISO14001 certified. These certified suppliers account for at least 98% of our hardware purchasing expenditure.

Regarding EU REACH, or the European Union Regulation on Registration, Evaluation, Authorisation and Restriction of Chemicals, we have been actively surveying and cooperating with all our direct suppliers to generate awareness and ensure that necessary actions are in place.

From a social and environmental perspective we have continued to promote compliance against our requirements. We conducted 62 Nokia Supplier Requirements assessments and eight indepth labor, health and safety and environmental assessments in 2008. Five of the indepth assessments were conducted by internal Nokia assessors and three by external thirdparty assessors, as part of the Global eSustainability Initiative (GeSI) and Electronic Industry Citizenship Coalition (EICC) industry joint audit pilot.

External Recognition

During year 2008 our extensive environmental work was recognised in several forums.

Nokia achieved the industry leader position (1st out of 23) in the Communication Technology category in the 2008 annual review for the Dow Jones Sustainability and Dow Jones STOXX Sustainability (European technology) indexes. The Dow Jones Sustainability Indexes, launched in 1999, are the first global indexes tracking the financial performance of the leading sustainability-driven companies worldwide. Following a best-in-class approach, they include sustainability leaders from each industry on a global and regional level respectively.

Nokia was listed as one of the companies (3rd out of 73) with best climate risk management approaches in the new Carbon Disclosure Project ranking. Nokia's rating puts it among the best companies as regards climate risk management, seizing business opportunities arising from climate change, and performance in measuring and reporting greenhouse gas emissions. This good result also earned Nokia a place in one of Carbon Disclosure Leadership Indexes, which list the highest-scoring companies.

Nokia was also included in the FSTE4Good index and ranked as a leading company (1st out of 39)among technology hardware companies in the categories of environmental performance, social performance and overall performance in a global technology hardware analysis by Goldman Sachs.

Nokia won the Green Awards competition in the Best Green Internal Communications category with the Power of we campaign. The entry also won the Green Awards Grand Prix.

During 2008 Nokia scored 3 top positions and one second position in Greenpeace's greener electronics quarterly ranking.