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Environment

We address our own environmental footprint, focusing on both climate and circularity. We strive to minimize our footprint across Scope 1, 2 and 3 by actively and continually managing that footprint. As the volume of network traffic rises in a more connected, digitalized world, we must work diligently to separate this growth in traffic from any equivalent growth in energy consumption. We also need to constantly strive to reduce GHG emissions across our operations and facilities, and work with our supply chain to help drive greater energy and resource efficiency through the whole chain. 

To minimize our environmental footprint, we aim to be the leader in energy efficiency in silicon, software and systems. We intend to accelerate our ambition in energy efficiency in 5G-Advanced and 6G through early engagement in standardization and ecosystem development. We are also improving product circularity with more recycled content in new products and expanded circular product offerings to customers.  

Our accelerated net-zero ambition

In 2023 we looked to investigate how to accelerate our net zero ambition and the related pathway and levers. In December 2023, the Nokia Group Leadership team approved the plan to fast forward both our net zero target (Scopes 1, 2 and 3) and our interim 2030 Scope 1 and 2 targets. 

Nokia commits to net-zero greenhouse gas emissions across the value chain (Scopes 1,2 and 3) by 2040. Nokia also commits to accelerate its existing 2030 target to reduce GHG emissions across its own operations (Scope 1 and 2), reaching an 83% reduction by 2030. This will be achieved through decarbonizing its car fleet and facilities faster than previously planned. Nokia is also taking action to reduce its hard-to-abate marine fleet emissions, in line with the International Maritime Organization decarbonization pathway. To ensure its targets are aligned with climate science, Nokia submitted its net-zero letter of commitment to the Science Based Targets initiative (SBTi) in February 2024 

Our achievements in 2023

We achieved our renewable energy target of 75% by the end of 2023 across our facilities. 

We achieved our short-term target of reducing the average power consumption of our mMimo 5G base station by 50% by the end of 2023. 

Our final assembly suppliers provided a 49% reduction compared to 2019.

We introduced our first Sustainable Finance Framework that underscores the importance of ESG to its business and financing structure. We successfully completed an inaugural EUR 500 million sustainability-linked bond. 

We announced our sponsorship of a professorship with the University of Jyväskylä in Finland to explore the measurement of our industry’s biodiversity impacts. 

Climate

Climate change remains a significant risk to society and the natural environment. It can negatively impact our supply chain and our customers’ business, as well as the global economy and political and social stability. We recognize that the products and services we provide globally may affect the environment and climate, as manufacturing, distributing and operating these products require energy and other natural resources. 
 

Net zero commitment

  • 2040: Net zero by 2040  (Scopes 1, 2 and 3)
  • 2030: 83% reduction across own operations (Scopes 1 and 2) including complete decarbonization of car fleet and facilities

Our key climate outcomes in 2023

Our current science-based target, is to reduce our total GHG emissions by 50% between 2019 and 2030 across our value chain (scopes 1, 2 and 3). Our current SBT covers the following activities: Scope 1: emissions from our facilities, car fleet and marine fleet own vessels. Scope 2: market-based emissions from purchased energy. Scope 3: emissions from the customer use of sold products (covering almost 100% of our current portfolio) and emissions from the logistics, the final assembly factories in our supply chain, and the marine fleet chartered vessels. Overall, Nokia’s SBT carbon emissions in 2023 saw a reduction of 9% compared to 2022. 

Our scope 1 GHG emissions in 2023 increased by 7 % to 111 100 tons CO2e driven by our marine fleet.  Our market-based scope 2 emissions reached 84 800  tons CO2e. This translates to a 37% reduction in our scope 2 emissions by the end of 2023, compared to 2022. In 2023 our scope 3 emissions included in SBT were 34 123 900 in 2023. This represents a reduction of 9% over the previous year. 

Despite this decrease, our current SBT-related emissions in 2023 were at the same level as the 2019 baseline year. The reported emissions for the baseline year were 34 960 700 tons CO2e. Nokia’s 2030 science-based target is not on track with a linear trajectory. While we continue to accelerate innovations in product energy efficiency, and supplier collaboration, the availability and take up of renewable energy by our customers must rapidly increase to support the achievement of the interim target.  

More and more Nokia customers are accelerating their journey towards renewable energy. In 2023 we started to collect customer-specific emission factors from our customers as we believe this could give a better indication of our total scope 3 category 11 (use of sold products) GHG emissions than using a GHG protocol mandated global emission factor. 

Therefore in 2023, we also calculated a total scope 3 category 11 emissions number based on blended emission factors. The blended emissions factors are a combination of customer-specific factors confirmed by customers, country average factors and global average emission factor. Our total scope 3 category 11 emissions based on the 2023 blended emission factor was 33 691 400 tons CO2e. In this first year, the blended emissions consist of 5% calculated by customer-specific emission factors, 92% calculated by country average emission factors and 3% calculated by global emission factor. In 2023 97 % of our GHG emissions came from our products in use by our customers in their networks. We continue to minimize these emissions. 

We also continue to drive energy efficiency in our own operations and our value chain. GHG emissions from our own operations account for less than 1% of Nokia’s total carbon emissions and are less prone to the impact of natural catastrophes and severe weather. However, we continue to reduce our energy consumption across our facilities through targeted programs and actions. This is further supported by our target to purchase 100% renewable electricity by 2025 across our facilities based on RE100 initiative.

We work with our suppliers to set clear targets, collaborating with them on climate issues and best practices. We collaborate with our customers on supply chain programs. We engage with our stakeholder ecosystem to drive improvements in the broader industry. Despite the potential positive impact of connectivity and digitalization, the ICT industry must continue to decarbonize its own operations and products, decoupling energy use from increasing capacity and data traffic demands.

Our climate targets from 2024 onwards

2024

  • 85% renewable electricity in our own facilities
  • 75% reduction of our facilities’ GHG emissions 

2025

  • 100% renewable electricity in our own facilities
  • 65% reduction of scope 1 and 2 GHG emissions, including 85% reduction of our facilities’ GHG emissions 

2030

  • 50% reduction of our total GHG emissions (Scope 1, 2 and 3)
  • Final assembly suppliers to reach zero emissions 
  • 50% reduction in suppliers’ GHG emissions
  • 73% reduction in logistics’ GHG emissions
  • 95% circularity rate for waste from our offices, labs, manufacturing, installation and product takeback 
  • Increase recycled content in mechanical part source materials

2040

  • Commitment to SBT to reach Net Zero emissions across value chain 

Our climate targets

Environmental 100% renewable electricity in our own facilities 65% reduction of scope 1 and 2 GHG emissions, including 85% reduction of our facilities' GHG emissions Industry verticals adopting private wireless customers (number of customers, in line with business plan) 2025 2040 Environmental 85% renewable electricity in our own facilities 75% reduction of our facilities' GHG emissions Environmental 50% reduction of our total GHG emissions (Scope 1, 2 and 3) Final assembly suppliers reach zero emissions 50% reduction of suppliers' GHG emissions 73% reduction of logistics' GHG emissions 95% manufacturing, installation and product takeback Increase recycled content in mechanical part source materials: Cast aluminum used in mechanical parts: to 90% Wrought aluminum, steel and copper alloys, as well as polycarbonate plastics used in mechanical parts: to 50% Environmental Commitment to SBT to reach net zero emissions across value chain 2024 2030

Our current SBT is aligned with the goal of limiting global warming to 1.5°C. We were the first telecoms equipment vendor to have a science-based target accepted by the SBTi in 2017. In 2023, we have been working to set a net-zero target with defined long-term actions and pathways for the decarbonization of our entire value chain. 
We also have other short-, medium- and long-term targets in specific areas of our operations and the value chain to drive concrete actions that support and accelerate the achievement of the main SBT target. 

The current science-based target covers the following activities: 

  • Scope 1: emissions from our facilities, car fleet and marine fleet own vessels 
  • Scope 2: market-based emissions from purchased energy 
  • Scope 3: emissions from the customer use of sold products (covering almost 100% of our current portfolio) and emissions from the logistics, the final assembly factories in our supply chain, and the marine fleet chartered vessels. 
     

Suppliers 

Our main final assembly suppliers have agreed to reduce GHG emissions by 100% by 2030 for the portion of their manufacturing attributed to Nokia. And we continue to advocate for greater uptake of decarbonized electricity. We encourage the use of more sustainable fuels by our logistics service providers, and work with energy utilities to help enable their transition.  

We don’t just set targets for our suppliers, we support them by working together to lower our upstream indirect emissions and to promote circular practice and innovation. In 2023, we maintained and improved our supplier climate engagement and had 458 suppliers disclose their climate performance information to CDP and 283 also set emission reduction targets. We also had 247 suppliers participate in the CDP water security questionnaire. Finally, we urged suppliers to align their climate targets with the SBTi and again rewarded climate-related innovations as part of our Supplier Diamond Awards program.

We also focus on reducing the embodied emissions1 of our products, for example by offering circular products, adding recycled material content into new products and working with our suppliers on their journey to decarbonizing their energy sources. Read more from our key climate-related targets for 2023 and see a 2024 roadmap of all our ESG targets.

Understanding and tracking our total emissions 

As shown in the following graph, Nokia’s total CO2e emissions from scope 1, 2 and 3 were 35 409 500tons CO2e. From this total amount, scope 1 emissions were 111 100tons CO2e, scope 2 market-based emissions were 84 800 metric tons CO2e and scope 3 emissions totaled 35 213 600tons CO2e. The scope of our science-based target covers 34 319 800tons CO2e, which is 97 %of our total 2023 emissions. Read more about the SBTi and the criteria for science-based targets here. 

Our carbon footprint (Scope 1, 2 and 3)

ESG Strategy: Environment

Our technology provides the tools to help resolve the worlds fundamental challenges for industry, society and individuals. 

Our ambition in the environment arena is two-fold. Firstly, we aim to be the leader in energy efficiency in silicon, software, and systems. We provide the networks and operations to scale smart energy solutions. We also intend to accelerate our ambition in energy efficiency in 5G-Advanced and 6G through early engagement in standardization and ecosystem development. Secondly, we continue to drive a circular approach, improving product circularity by introducing more recycled content into new products and expanding the circular product offering for our customers. 

Reducing energy consumption in our chipsets

ReefShark: At the 2023 Mobile World Congress Nokia launched its new generation of mobile network radios, which benefit from the integration of a new generation of Nokia ReefShark System-on-Chip. This can reduce radio use-phase energy consumption by some 30% and associated material carbon footprint by 30% compared to earlier products.

Quillion: Our Quillion chipset reduces power consumption for broadband access products. Quillion-based solutions consume about 50% less power in the Optical Line Terminal (OLT) than previous generations and are two years ahead of the European Union Code of Conduct for Broadband Communication Equipment targets – helping operators to meet their emissions goals. By the end of 2022 the 150th customer deployed our Quillion-based chipset in fixed broadband solutions bringing related energy efficiency benefits

FP5: Our FP5 network processor offers a 75% reduction in power consumption compared to its previous generation. In fact, Nokia and BT are further collaborating on highly scalable, power efficient IP networks. FP5 is the new heart of Nokia’s IP service routing platforms. Nokia has also added support for high density 800G routing interfaces, new embedded line rate, flow-based encryption capabilities, and a 75% reduction in power consumption compared to its previous generation, which supports BT’s sustainability objectives to run the most power efficient network in the UK.

PSE-VI: Nokia’s sixth generation of super-coherent Photonic Service Engines (PSE-6s) opens a new frontier in scalable, high-performance, and power-efficient optical networking.  The PSE-6s delivers the solution needed by network operators across a wide range of optical network applications., enabling operationally simple upgrades to Nokia’s transponder, compact modular and packet-optical switching (P-OTN) platforms.

Learn more about our Photonic Service Engine chipsets

Maximizing our handprint

Our technology solutions make asset intensive industries more efficient, helping minimize waste and enabling greater reuse of precious resources and materials. We work with customers across asset intensive industries such as utilities, oil and gas, manufacturing, transportation, mining, agriculture as well as in other areas of business. Enhanced connectivity and new advanced digital solutions also underpin everyday life, creating more energy efficient, cleaner, less polluted cities and communities, helping to manage and reduce waste. For more see industrial digitalization section

Maximun

Minimizing our footprint

We have a key responsibility to limit potential negative impacts of our business and operations. We strive to minimize our footprint by actively and continually managing that footprint. As the volume of traffic rises in a more connected, digitalized world, we must work to separate this growth in traffic from any equivalent growth in energy consumption. We also need to constantly strive to reduce GHG emissions across our operations and facilities, and work with our supply chain to help drive greater energy and resource efficiency through the whole chain.

Minimize

Decarbonizing our value chain 

We must continually manage our industry’s own footprint. We must ensure that the products and solutions we design and deliver to our customers are as energy and material efficient as possible. Our whole value chain must also show improvements in energy efficiency and minimize any potential negative impact from technology.  

Our portfolio 

According to our life cycle assessment, the GHG emissions from the customer use of sold products remain the largest part of our carbon footprint. As stated above, in 2023 the use phase based on GHG reporting accounted for 97% of our total GHG emissions. Our greatest efforts remain concentrated on reducing the power consumption of our products across Nokia’s portfolio to improve energy efficiency and have the greatest direct impact on our carbon footprint.

In 2023 we delivered energy-efficiency solutions in silicon, hardware, software and services. We worked with our customers to optimize the energy used across their networks, not just looking for energy gains of individual network elements. We assessed the opportunities to improve network performance and minimize energy use, thereby lowering emissions. 

We also looked at automatic configuration and AI/ML based optimization of energy savings functionalities, intelligent software capabilities, technology innovations in our HW evolution, and energy-efficient site solutions to minimize our carbon footprint.  

Below are a number of examples from our product offering which reflect this work across our portfolio. 

5G and climate

5G and climate

5G and climate: 5G is considered natively greener than previous generations of mobile technology and can potentially provide 100 times more data traffic with less energy per bit thanks to new standardized efficiency features. This is based on the ITU-R (International Telecommunications Union) design target for 5G radios which is 100x traffic with same energy consumption compared to 4G.

5G is the only radio technology that can help to digitalize societies while also allowing the decoupling of the growth in data traffic from equivalent potential growth in energy consumption. An energy-efficient 5G deployment strategy is the only way to build the best performing, lowest cost 5G radio networks. 5G also provides the foundation for the efficient use of other new technologies (AI. VR.AR, blockchain).

Out of the global pandemic, we have seen the emphasized need for reliable, robust networks. The benefits of these critical networks to other sectors and parts of society far outweigh any potential increases in their own network energy use. But we still drive for greater energy efficiency.

Circularity and geodiversity 

 

At Nokia, we look at circularity from two perspectives. First, how we can increase the usage of non-virgin materials in the creation of new products and packaging. Second, how we can ensure maximum circularity of our operational value chain. This means that we embed circularity into everything we do. 

Efficiency, the optimized use of resources and digitalization are key contributors to increase circularity. Traditional ownership of goods is changing to access to services and to the use of digital platforms for a sharing economy, all of which can improve circularity. Our strategy to increase operational circularity follows the classic waste hierarchy. The first principle of the hierarchy is always the avoidance of waste, which we do through digitalization, operational efficiency and product life extension. As we are not able to dematerialize everything, good waste management practices are important as well.  

We have set targets to increase the use of circular materials in new products. We introduced a circular metric to guide our operational circularity journey and to close the material loop. Our target is to be 95% circular with regard to waste in 2030. This target includes waste across our value chain: from our own top 20 sites based on waste production, including our own final assembly factories, supply chain final assembly factories, installation projects at customer sites, and product takeback. 

The purpose of the new target is to improve waste management so that disposal to landfill is minimized and the waste produced will be either reused, recycled or recovered. To reach our target we aim to improve our waste-related data management and work with stakeholders to help ensure the best possible circular solutions for obsolete materials across geographies. In 2023 we achieved a circular waste level of 86%  with the data coverage we had in 2023. We have recognized areas where high circularity rate has already been achieved and also areas requiring further action. There are still data gaps to be closed but data accuracy has increased. Annual waste circularity outcome for 2023 was 86%. 

woman making a chip

At Nokia we look at circularity from two perspectives

diagram image

We continue to progress with the creation of ICT-specific circular economy standards with the International Telecommunication Union (ITU) and the European Telecommunications Standards Institute (ETSI), providing a common industry view on circularity and sharing best practices.  

In 2023 an assessment method for circularity-performance scoring (ITU-T L.1023) was revised and published, making it applicable for a much wider product set including network infrastructure ICT goods, while the earlier standard was mostly tailored toward consumer electronics. New criteria and requirements related to robustness, material recycling compatibility, recycled metal content and other aspects related to package recycling and recyclability were also added. Work is ongoing on a global digital sustainable product passport, a model for product information on sustainability and circular economy, and other work items related to e-waste management and circular economy. 

For over 30 years, we have had well-established circular practices that utilize the full value of our products. We take back or acquire excess and obsolete products from customers and markets, and then refurbish, repair or remanufacture these units for inclusion in the product supply chain for customer purchase or our own internal use. As an original equipment manufacturer, we maintain processes that keep products at their highest value and quality for multiple uses and for the longest time possible through our global services. 

 

Circular Products & Services portfolio

At Nokia, we are focused on strengthening the circularity of our customer offering. Our Circular Products and Services portfolio enables customers to shift more quickly into the circular economy and ensures that the customer network evolution is sustainable. We take on the collecting, refurbishing, reusing, reselling and recycling of telecom equipment during network upgrades or expansions. 

Nokia Circular Products and Services consists of four modules that can be customized to meet e2e customer requirements:

  • Asset Recovery: Reacquiring (takeback/buyback) and handling customer dismantled surplus products, including consultation, logistics and project management
  • Circular Products and Parts: Selling circular products and parts to operators looking to expand their network using circular products 
  • Refurbishment Service: Extending hardware lifetime but also testing and validating  customer-owned dismantled product equipment for reuse in the network
  • Recycling Service: Maximizing material recycling and minimizing landfill, and e-waste management 

For further information on how we do this you can read more on the Circular Products and Services webpage.

Recycled content in products 

In 2023, we continued our work to increase the use of recycled material content in our products. First, we worked further with our suppliers of cast aluminum parts to fully understand raw material acquisition practices and the potential to increase the recycled content in our components.  

We estimate that 43% of over 10,000 tons of cast aluminum parts used in Nokia products in 2023 have recycled content in them. The recycled material used in our products today is mainly from inter-industry manufacturing waste, as there are still challenges related to material purity, availability of recycled materials and verification of source of materials.  We see positive developments from suppliers of aluminum – in terms of actively searching for sources of recycled material, as well as setting targets that reflect our long-term targets.

We have also extended this work and conducted baseline analysis for copper and steel (both stainless and low alloy steel) in our mechanical parts. Availability of recycled copper and steel is even lower than aluminum, and suppliers are only just starting to implement the requirement to have recycled content for these materials. The percentage of recycled material content for copper is 3% and for steel is 7% for low alloy and 13% for stainless.

We have also continued to increase the circularity of plastics used in our products by identifying projects where recycled plastics may be used. In 2023, Fixed Networks started shipping a second customized optical network terminal (ONT) design that uses 60% post-consumer recycled plastic in its housing. In addition, a new ONT was developed where a housing with 85% recycled plastic content is available as an option for customers. Meanwhile, Mobile Networks started shipping samples of the new Habrok radio that contains 50% post-consumer recyclate in the housing parts.

43%

We estimate that 43% of over 10,000 tons of cast aluminum parts used in Nokia products in 2023 have recycled content in them.

Extended Producer Responsibility (EPR)  

Compliance with relevant environmental regulations is an important part of our environmental policy. Extended Producer Responsibility (EPR) regulatory programs strive to decrease the environmental impact of covered products by making the manufacturer responsible for the entire life cycle of the product, especially end-of-life (EOL) management through product takeback. 

As EPR regulations evolve globally, we have continued our work on increasing product value recovery at end of life. Based on the Recycling and Reuse Metric  that we pioneered with the iNEMI organization, we are now better able to evaluate new product designs with an eye towards improving materials choice, ease of parts and materials liberation, and available recovery technology in countries where the products are sold. 

Sustainable product design 

Our Design for Environment approach helps to ensure we create technologies that incorporate environmentally sustainable principles. Life cycle thinking is a key component of this approach. It helps us reduce our products’ lifetime environmental impact by improving material and energy efficiency. It also enables compliance with both regulatory and our own requirements.

We provide an environmental product declaration (EPD) to our customers for the majority of our products. The EPD details environmental data for our products, including material composition, embodied emissions, power consumption and recycling instructions.

Environment Image

When looking at our products’ environmental impact calculated with life cycle assessment (LCA), the energy consumption during the product’s use stage forms the greatest part. We provide an EPD in both product embodied emissions (raw material acquisition, production, installation, maintenance, end-of-life treatment, and distribution and transport for each stage) and also product power consumption. The LCAs performed on our products follow the ITU-T L.1410 standard and the ISO 14040/14044 standards.

To help address this use stage energy consumption, our Design for Environment program supports product development teams by setting requirements and evaluating energy-saving features with each new product introduction. In 2023 we worked jointly within the International Electronics Manufacturing Initiative (iNEMI) to initiate a new round of updates for life cycle environmental impact data for key component categories used in our products – printed circuit boards, semiconductor devices and commodity materials such as metals and plastics. The intent is to have more contemporary datasets included to assess our products’ carbon footprint more accurately during their development (more information on this project and its call for participants can be found here.

Our Design for Environment program covers more than product hardware – it also includes the software designed to operate the hardware. Our software methodology documentation aims to help software developers significantly reduce the amount of energy used by network equipment by having them consider how their software code affects equipment energy use. To evaluate the resource efficiency and energy efficiency of the virtualization of network functions, our software developers employ the Resource Efficiency Rating (RER) and Energy Efficiency Rating (EER) metrics as defined in ETSI standard ES 203 539.

In 2023 we began collaboration with the Consortium for IT Software Quality (CISQ) that has evolved into a comprehensive standard measure, particularly in the form of an Automated Source Code Resource Sustainability Measure (ASCRSM). This new measure aims to address weaknesses with substantial impacts on resource usage, contributing to a more sustainable and efficient approach to software implementation. 

Materials and restricted substances 

Global legislation or regulations ban or restrict several substances considered hazardous to humans and/or the environment. In the design phase we ensure these substances are not present in our products, components and materials. Future customer and legal requirements may also influence product development choices made today. 

Our products, including original equipment manufacturer (OEM) product parts, modules and components, must meet the requirements stated in the Nokia Substance List (NSL). In 2023 we again reviewed and published our NSL with minor changes to the requirements. The current list can be found here

Suppliers must provide us with a list of any EU Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) candidate substance of very high concern present in a product. Furthermore, products, parts, modules and components must not contain any substance listed on the NSL as “to be avoided,” as far as is technically and economically possible. We aim to comply globally with all applicable substance requirements from environmental laws and regulations, such as the EU RoHS Directive (2011/65/EU), WEEE Directive (2012/19/EU) and REACH Regulation ((EC) 1907/2006). For more information on REACH, please see Nokia’s REACH Declaration

In view of the increasing concerns regarding the very high persistence of per- and polyfluoroalkyl substances (PFASs), a thorough assessment was done across Nokia’s business groups and supply chain to identify where PFASs are used and understand what applications should be prioritized for research into substitution. In December 2023 we decided to list PFASs as “To Be Avoided” in the 2024 edition of the Nokia Substance List. 
We globally restrict the use of ozone-depleting substances in products and packaging as well as in supplier processes per the requirements of EU Regulation (EC) No. 1005/2009 on Ozone-Depleting Substances, which implements the Montreal Protocol into EU legislation.  

 In 2023, we refreshed the material content data with supplier responses on NSL compliance, use of RoHS exemptions and presence of REACH Substances of Very High Concern (SVHCs) after distributing the updated NSL. The data is subsequently reviewed and stored in a dedicated database enabling us to review the impact of changing substance requirements on our current and future products. 

 

Material efficiency innovation 

Material efficiency includes designing products that use fewer materials and less energy while having increased throughput capacity and functionality. This material efficiency is exemplified in our Mobile Networks products. With our ReefShark System-on-Chip (SoC), the newest generation of mMIMO has higher energy efficiency and a significant reduction in materials compared to the previous generation. New chipset designs can provide a trio of benefits in power efficiency, materials reduction and capacity increase.  

Product materials breakdown 

Our products are composed predominantly of metals, constituting around 80% of the total weight in most products. Aluminum is the most significant metal, and it is used in sheet metal for cabinets and chassis, and in castings for heat sinks. Steel, stainless steel and copper follow aluminum as the most relevant metals present in our products. Plastics only comprise less than 20% of our products by weight.

From an LCA perspective, it is not always the case that the heaviest material or component in our products has the biggest impact on climate change.  
The graph above shows an example of the breakdown of a Nokia product (5G remote radio unit) into its weight and respective embodied emissions. In blue we show the percentage of weight respective to the total weight of the product. Similarly, in green we show the percentage of climate change respective to the total embodied emissions of this 5G radio. This gives us the following environmental areas to focus on: material efficiency (including weight reduction, and leading to transport efficiency); higher percentage of recycled content for mechanical parts; and size minimization of integrated circuits (ICs) leading to reduced size of printed wiring boards (PWB) and a reduction in total passive components).

Round Image

Product packaging 

We have focused on reducing and eliminating plastics from our product packaging. In fact, we have explored alternative ways of using cardboard to make shock-absorbing elements and thus replace the traditional plastic foams. This has successfully been implemented in several Fixed Networks products in 2023. Mobile Networks is expanding its use of fiber-based cushions in the packaging of some products.

The plan for existing solutions is to initially replace plastic foam packaging in high-volume products. Additionally, we are focusing on the shift from linear to circular packaging designs and sourcing to make our packaging 100% recyclable and increase the use of recycled plastic content.

Such steps promote the sustainability of our packaging (increasing material circularity, reducing our CO2 footprint and limiting resource depletion) and bring more attention to waste reduction (assigning value to waste material incentivizes innovations in plastic and recycling technology).

There are several aspects of these new packaging solutions that differ from the standard solution. The first is easier recycling for the customer – the packaging can be easily flattened and the use of one single material saves time during recycling and helps avoid any contaminants. The second is improved sustainability – reduction of oil-based materials in the packaging, less microplastics in the ocean and avoidance of plastic taxation. In addition to customer recognitions, we have won several prestigious awards (iF Design Awards and Red Dot Design Award) for our sustainable packaging design and demonstrating peer recognition. 

Our own operations and climate 

Our target to reach 100% purchased electricity from renewable sources by 2025 across our facilities includes our offices, laboratories and our own factories. It is aligned with the RE100 initiative, the global corporate renewable energy initiative bringing together hundreds of large and ambitious businesses committed to 100% renewable electricity. 

In 2023 electricity consumption across our facilities was reduced by 3% compared to 2022, 75%  of total consumed electricity came from renewable sources and our scope 2 market-based emissions decreased by 37% from 2022 levels. The facilities’ scope 1 and 2 emissions were reduced by 18% compared to 2022 and 56% compared to the 2019 baseline. Total energy use across our real estate portfolio was 3% lower compared to 2022. 

Marine fleet 

Nokia has a marine fleet related to our subsea cables business, Alcatel Submarine Networks (ASN). ASN contributes to Nokia’s main target to reduce GHG emissions by 50% by 2030. The ASN fleet represents around 63% of our scope 1 emissions. Although ASN’s marine fleet CO2 emissions have increased globally, when broken down by vessel there is an average reduction of 4.5% engaging our suppliers per vessel compared to 2022.  
ASN has a green charter in place and continues to look at five important strategic areas: the rejuvenation of its marine fleet, the use of shore power when at port, the optimization of transit routes using AI, the mobilization of regional-based chartered vessels to reduce transits, and next-generation cable ships with the latest technology in terms of propulsion and power generation.  

Employee transportation – our car fleet 

With our employee transportation, we aim to reach the target from our own operations by introducing low-emission vehicles and alternate mobility options. In 2023 GHG emissions from our global car fleet decreased by 14% compared to the previous year and are now 35%  less than in 2019. 

Waste in our operations 

Building on our detailed review of waste during 2023, we focused on key sites to review the facility waste management arrangements, aimed at increasing the percentage of waste that is recycled and aligned with our circularity waste target. Site closures and disposals contributed to the overall waste reduction. Improved Nokia product repair data collection from external repair suppliers in 2023 resulted in increased e-waste data reporting over 2022 data.  
 
Operational waste also includes Nokia product repair waste. In 2023 our total operational waste decreased by 25% compared to 2022. We recycled, reused or recovered energy from 93% of all operational waste.  

Reloaded
Ensuring appropriate recycling of e-waste 

All electronic waste generated in our facilities and other operations, including asset recovery, can only be shipped to processing facilities that have gone through our health, safety and environmental (HSE) liability assessment. The requirements for the HSE liability assessment vary based on risk, which is dependent on waste quantity, shipment frequency, waste type/toxicity, waste treatment technology, environmental management system (EMS), location, legal requirements and prior assessments. 

Our goal is to maintain the minimum number of approved waste-processing facilities needed to meet required services and minimize environmental liability. In 2023 we completed 10 environmental health and safety liability assessments of e-waste recycling facilities located in Poland, Turkey, Brazil, Hong Kong, Austria, Mexico, Saudi Arabia and the US.  

Water in our own operations  

Life cycle assessments (LCAs) show that the predominant water withdrawal value chain results from the generation of electricity used to power our products in our customers’ networks. As our products consume electricity during their relatively long design lifetime, our biggest influence on water withdrawal is to reduce power consumption over the products’ use time. 

Water utilization within our facilities is typically associated with sanitary use, cleaning, and landscaping activities. In 2023 we used 967 000m3 of water in our facilities, a reduction of 7% compared to 2022. Total water withdrawal was 943 000m0 which is less than the total water consumption, as 2.6% of the withdrawn water was recycled. We implemented our water reduction action plan, installing waste saving devices including low flow taps, reduced flush WCs and flow controls to appliances. We also selected more sites outside of water-stressed countries to review best practices and identified further opportunities for 2024.

Water in our supply chain 

We address supplier categories where water may be a material risk through a water assessment program that includes awareness raising, annual data collection, target setting and follow-up.  

In 2023, 247 of our manufacturing suppliers completed the CDP’s water security questionnaire, representing 53% of our total supplier spend. Out of the participating suppliers, 80% had undertaken a water-related risk assessment for their direct operations. They identified actual water-related risks in their operations such as flooding or increased water stress or scarcity, potentially resulting in the reduction or disruption of production capacity or increased operating cost.  
48% of suppliers had structured targets related to water consumption, discharge or withdrawals. Targets were mostly related to internal efficiencies rather than being contextual (e.g. water basins facing challenges related to high-risk areas or shared sources of water). Our supplier water risk map relevant to our manufacturing locations is below.

water risk

Supply chain

Circular

Besides meeting the requirements stated in the Nokia Substance List (NSL), suppliers product documentation must also provide us with a list of any EU REACH candidate substance of very high concern present in a product. Furthermore, products, parts, modules, and components must not contain any substance listed as To be Avoided in our Substance List to the extent technically and economically possible. See more on restricted substances in our REACH declaration. 

In 2021 we expanded our work on aluminum content in our products to look at the closed loop development for gold used in the products. We started working with our electronics waste recyclers in determining the destination of gold from our obsolete products and matching those companies with the ones that our suppliers use for gold purchases to close the loop. We plan to expand our program to cover copper in the next phase.  

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Suppliers product documentation must also provide us with a list of any EU REACH candidate substance of very high concern present in a product

Climate

We work with our suppliers to reduce emissions, setting targets across our supply chain. Our target for our final assembly suppliers is part of our SBT climate target and requires that the final assembly suppliers achieve zero emissions by 2030 for the portion of their manufacturing allocated to Nokia. All final assembly suppliers have detailed roadmaps on a factory level, and we track their execution at business review meetings. We have also set a 50% reduction target by 2030 for other suppliers.

In 2023, we extended our close collaboration on our 2030 roadmap with our Joint Design Manufacturing (JDM) suppliers as well as supplier categories with high emission intensity such as suppliers of integrated circuits, semi-discretes and printed wiring boards.
 
We require our suppliers to have a documented environmental management system (EMS). We also require key suppliers to be ISO 14001 certified, which we track. We have worked with the CDP Supply Chain Climate program for more than 12 years and together create programs to drive continuous improvements in our upstream scope 3 emissions.

We encourage our key suppliers to report their emissions, set reduction targets and roadmaps, get data verified and cascade emission reduction expectations and due diligence also to the next tiers. By following up with suppliers on improvement areas, we also share our good practices and help them reach their targets.

We send out an annual climate assessment questionnaire via CDP to nearly 600 suppliers, supported by practical guidance and sessions on how to measure CO2 and how to fill out the required information. CDP (formerly known as Carbon Disclosure Project), is a global not-for-profit organization that helps cities and companies like ours disclose their environmental impact, with the aim of making environmental reporting and risk management a business norm for all. Following these assessment rounds, results are communicated with suppliers and tailored advice is shared as part of the suggested next steps, based on their performance. When it comes to our final assembly suppliers, data collection and monitoring take place on a much more stringent monthly basis. Performance and reduction projects track and benchmark impact within our own factories.
 
In 2023, 458 of our key suppliers, representing 65% of our total procurement spend, responded to the CDP’s request to disclose their climate performance information. All suppliers whose CDP performance was below expectations were provided with improvement requirements and recommendations on next priorities.
Every year, we host the Nokia Supplier Climate webinar where we share our expectations, 2030 targets and good practices coming from different stakeholders within Nokia such as R&D, Logistics, Travel and Fleet and Real Estate. The aim is to cultivate good practice across our supplier networks and find innovative new approaches for our suppliers to work on each year.

In 2023, our scope 3 emissions from our supply chain (part of scope 3 category 1) were approximately 540 500 tons CO2e. These emissions are estimated by using our suppliers’ scope 1 and 2 emissions allocated to us based on the volume of products and services we purchase from them. We received the emissions data from 63% of our supplier spend through the CDP Climate Change program, and we scaled up the emissions allocated to Nokia to cover 100% of our suppliers.

In 2023, we continued to address the data quality challenges (accuracy) in emissions allocations by comparing the supplier-reported data with life cycle assessment (LCA) data tools and addressing quality issues with suppliers with significant deviations from sector-average and LCA values.

Our Supplier Diamond Awards in 2023 again recognized suppliers across several categories. Expert juries judged supplier presentations, and the best were announced at our annual supplier event. The winning supplier in the sustainability category in 2023 was one of the leaders in sustainable semiconductor manufacturing – examining the decarbonization of its own operations, establishing a net-zero target for 2040 and collaborating with Nokia to reduce the emissions of our products.

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We work with our suppliers to reduce emissions, setting targets across our supply chain

Product transportation and distribution 

We aim to save space, reduce packaging materials and maximize transport efficiency, thereby reducing inbound and outbound shipments. The continuous optimization of our manufacturing and supplier network across the regions will not only enable us to deliver a more rapid response to our customers’ needs, but also decrease transportation costs and reduce CO2e emissions. The reuse of packaging materials also contributes to reductions in the use of new packaging material. In 2023, we reduced the use of new packaging materials in terms of weight by 2 100 tons by reusing transportation packaging.  

In terms of our logistics, we look to explore and use the most efficient product transportation options. In 2023, our scope 3 GHG emissions related to upstream transportation and the distribution of our products stood at around 140 900 tons CO2e, a decrease of 57% compared to 2022.  

This significant drop in the above CO2e emissions is partly due to our continuous efforts to reduce air transportation while increasing sea, road and multimodal modes (e.g. combining sea and air) and partly to the regionalization that moves activities closer to customers. As a result, in the last two years we have nearly halved our air transportation deliveries. However, a considerable part of the reduction in transported volumes related to a decrease in our deliveries. 

As one of the emission reduction methods in our transportation activities, we have explored carbon in-setting, which is similar to carbon offsetting except the activities that lead to carbon footprint reduction take place within the context of the value chain. In 2023, we continued applying our sustainable aviation fuel (SAF) carbon in-setting model, which aims at a direct carbon mitigation of the transport system. This is one of the most sustainable ways to reduce carbon emissions in air freight, as it saves any additional energy consumption arising from compensation measures. We further engaged with our logistics partners on our requirements related to the offering of SAF and have expanded the collaboration on SAF to four logistics partners.  

For 2024 our focus will be on continuing to improve the environmental efficiency of our transportation by collaborating with the biggest contributors (for example logistics providers, partners or customers) and concentrating on minimizing the most environmentally detrimental modes of transport. 

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In terms of our logistics, we look to explore and use the most efficient product transportation options

Minerals 

We aim to contribute to a long-term solution to the issue of conflict minerals that ensures responsible and conflict-free sourcing via legitimate trade that brings sustainable improvements in those countries where the risks are greatest. We demand that our suppliers commit to sourcing these key materials from environmentally and socially responsible sources. We work with the Responsible Minerals Initiative (RMI) and Public Private Alliance to increase impact through industry wide collaboration.  

See our Conflict Minerals policy 

Biodiversity

Biodiversity can be defined as the variety of animals, plants, fungi, and even micro-organisms such as bacteria that make up our natural world in a particular area. Biodiversity can be considered material for every company and individual as it provides everything in nature that we need to survive food, clean water, medicine, and even shelter.

Although biodiversity is of increasing importance for our stakeholders, at Nokia we also look more broadly at our dependence on natural resources, including climate, biodiversity, and geological diversity (geodiversity). By geodiversity, we mean the earth's minerals, rocks, fossils, soils, sediments, landforms, topography and hydrological features such as rivers and lakes.

While the ICT industry is not considered to be one of the high-impacting sectors related to biodiversity, the story may be different for geodiversity. From a geodiversity perspective, the production of ICT hardware requires various metals, minerals, plastics, chemicals, energy and water in a multi-tier supply chain. 

Beyond our science-based climate targets, we have now started to work to understand the impacts affecting natural capital (including biodiversity and geodiversity) across our value chain. These areas include mining raw materials and component production, final assembly production, logistics and fleet, installation and use, maintenance of sold products, and product end-of-life activities. To find out more, read Nokia's position paper on biodiversity and geodiversity

Biodiversity

Biodiversity in action 2023  

University cooperation 

We announced a new co-funded tenure-track professorship at the University of Jyväskylä to improve biodiversity footprint assessments in companies. This activity is an important step on a broader longstanding commitment to combating climate change and minimizing environmental impacts. 

Further information can be found here.

 

UN Global Compact SBTN working group 

We are part of the UN Global Compact Finland SBTN working group. Together with Ramboll Finland, the UN Global Compact developed the Science Based Targets for Nature (SBTN) program. This training involves 15 Finnish companies from different areas. It is the first program of its kind by UN Global Compact. It started in 2023 and finishes spring 2024. 

Nature protection  

Nokia has a number of nature conservation areas on both land and sea. In 2023, our total protected area expanded to 242 hectares, comprising 131 hectares of forested areas, 11 islands, and 111 hectares of marine environments. This include areas in Siuntio and Båtvik in the south of Finland as well as Rikkisaari and parts of the Kitka river in the north of Finland. These areas contain a mix of different plants and animals contributing to a rich biodiverse habitat.

In 2023 Nokia established two new conservation areas. The major addition to our protected sites is Kitkajoki-Arvunki, covering approximately 71 ha in Kuusamo. The smaller 14 ha area has been protected in Siuntio, Southern Finland.

The Kitkajoki-Arvunki conservation area is more substantial in size than it might appear, as it combines our previously established Harjasuo-Laurinkorpi conservation area. The combined area is now 103 ha. The newly established conservation area boasts approximately 1.5 km of Kitkajoki riverbank, which is aesthetically valuable ridge forest in this area. In the middle of the conservation area lies Lake Arvunki, and a couple of pristine streams flow through the area. The forests in the area have been excluded from economic use for decades.

The Siuntio area is a mosaic of rocky and heath forests, enriched by cliffs and small groves providing an authentic representation of southern Finland's diverse and captivating natural landscape.

The oceans and seas are also linked to Nokia’s business. Nokia’s Alcatel Submarine Networks (ASN) develops and installs the subsea optical fiber networks that connect the world. ASN’s aim is to do this in a responsible and sustainable way.

In November 2022 ASN was the first private company to join the Ocean Decade Corporate Data Group. This initiative, led by the Intergovernmental Oceanographic Commission (IOC) of UNESCO, is aiming accelerate our understanding of the ocean, its biodiversity and its geophysics parameters to help in its preservation. The IOC promotes international cooperation in marine sciences to improve management of the ocean, coasts and marine resources.

In early 2023 we announced that we will deploy private wireless connectivity, network edge equipment and analytics for The Ocean Cleanup, the international non-profit project working to develop and scale technologies to rid the world’s oceans of plastic. 5G, private wireless, edge compute, sensors, AI-based analytics, drones and other advanced technologies will play an increasingly critical role in supporting the conservation and sustainability of our natural environment by providing immediate up-to-date and constant information on the status of the environment, whether on land or in the sea. Working with The Ocean Cleanup provides the opportunity to explore that role further.

In late 2022, we confirmed an exciting partnership with the John Nurminen Foundation to protect biodiversity in the Baltic Sea (link). A three-year joint effort is meant to combat eutrophication in the Baltic Sea and the associated risk to biodiversity. Nokia’s critical role is to support the conservation and sustainability of natural habitats by providing immediate up-to-date and constant information on the status of the environment whether on land or in the sea through our advanced technologies.
 

Tree with water