Materiality and value creation
Our corporate responsibility activities align with our most material topics related to our business and the impact on sustainable development.
We look at a variety of factors in order to determine our most material issues. Amongst other factors we look at:
- Our renewed company vision and corporate strategy
- Assessments of risks and opportunities through Nokia Enterprise Risk Management system
- Our long history and experience in sustainability and corporate responsibility
- Our regular engagement with various stakeholders, including industry cooperation around key sustainability topics
- Our customers’ sustainability requirements and evaluation criteria in the EcoVadis supplier assessment
- Requirements and feedback from investors, and indices such as the Dow Jones Sustainability Indices and the CDP
- Global macro trends and challenges and issues that are subject to public debate and media and analyst interest
- UN Sustainable Development Goals
- International sustainability frameworks such as the Global Reporting Initiative (GRI) G4 and the UN Global Compact.
We take into account the shared value we can create by minimizing our negative impacts and maximizing our positive impacts.
Having completed the review and update of the materiality analysis in early 2018, we intend to make the next major review at the end of 2019.
Through the year we have concentrated our activities on the key material aspects shown in our materiality matrix. These include the positive impact of connectivity and sustainable products, as well as environmental impact and climate change challenges.
We work hard to ensure strong ethical business practices and compliance management, supporting the need for data privacy and freedom of expression, supply chain responsibility and transparency, health & safety, and employee engagement and a diverse employee culture.
During the year, a number of key topics came up from our customer and other stakeholder base. Topics included zero waste, single use plastics, circular economy and the use of technology to combat forced and trafficked labor across supply chains. we will see if these topics begin to increase in importance more generally as part of the next major review of materiality at the end of 2019.
The two materiality maps below show the 20 most material topics, and their relevance to sustainable development and our business success. They are also mapped to the Sustainable Development Goals, as well as key business and sustainability drivers.
Our impact and influence throughout the value chain
We have a variety of ways through which we achieve economic, environmental and social impact. We have different levels of influence on different parts of our value chain - across suppliers, our own operations, logistics and installation, product use, and reuse and recycling. The diagram below gives a view of where we have impact and influence on sustainable development across our value chain.
We have seen growing interest in quantifying a company's positive and negative impacts of on the environment, the economy and society as a whole. We have been part of Aalto University CEMS program in Finland, through which an extensive analysis was conducted concerning Nokia’s positive and negative social, environmental, and economic impacts throughout the value chain and translated into a monetary value.
We are a member of the Upright Project which looks at value creation analyses and methodologies across several companies and organizations. In the Upright model shown in the figure below, the negative and positive value creations which have been given a monetary value are analyzed and shown in five main dimensions: economic, environmental, health, social and knowledge. Each of these dimensions are divided into several impact areas.
The conclusions in the chart for the 20 impact areas are from the project. The estimations are based on public data and various assumptions. For example, in the economic area, the values of paid salaries and taxes are based on the reported euro values, and in the environmental area, the Nokia reported GHG emissions, water usage and waste figures are converted by Upright into euro figures, using sources such as The Kering E P&L, carbon tax country-specific pricing, and global water tariff averages. The analysis was completed by The Upright Project early 2018 and reviewed in both Nokia Responsibility Council and the Nokia Board.
Nine main impacts found for Nokia in 2018
Based on the analysis carried out by The Upright Project, our main impacts were shown to be related to our network technology. It brings major net positive impact through knowledge creation (information infrastructure and related innovations), economic benefits, and job creation throughout the value chain. Moreover, the project showed that in environmental issues, the positive impact of communications technology exceeds the negative impacts of our own operational activities, for example, by enabling other industries to become more energy efficient.