Our operations We manage, track, and improve our environmental impact through a robust environmental management system (EMS). Although our operations emissions are a relatively small part of our overall emissions in relation to emissions from our products in customer use, we continue to set targets to reduce our Scope 1 & 2 emissions, emissions from our own operations. In 2017, as part of the science based targets setting, we also committed to decrease emissions from our own operations by 41% by 2030, compared to the 2014 baseline. Our environmental activities relate to circular economy and climate, and come under the Environmental Management System. We analyze our environmental aspects throughout the value chain, checking the significance of each aspect annually under the categories energy and emissions, and natural resources and waste. We realize there are both potential risks and opportunities related to climate and other environmental changes such as resource challenges, natural disasters, and changes in legislation. We use our core strengths in technology to affect positive change and drive opportunities to contribute to the fight against climate change. In 2017, we achieved our 1.8% year-on-year target to reduce energy consumption across our facilities, while our total energy consumption decreased by 3% as compared to 2016. We also reduced water consumption by more than 14% across our facilities. Keeping track of environmental data in a company of our size with operations in 130 countries can be challenging at times, so in 2017 we began the process to procure a comprehensive software platform which will increase the automatic collection and reporting of environmental data. Our sites where we have technical laboratories require more energy, therefore we conducted a broad project related to the optimization of energy efficiency in our laboratories. Our locations with electrical sub-meters allow us to monitor our electrical power usage on a more detailed level and analyze trends and patterns. When we split the site level electrical consumption into the lab and office/infrastructure components, we found that on average, 75% of electricity was consumed by labs and 25% consumed by office space and general facilities. We also found very different power usage patterns. Office space and general facilities had energy usage patterns that were dynamic, indicating that electrical devices/machines were being turned off when not in use, particularly at night, weekends, and during holiday periods. However, most of our labs drew a steady power load, indicating that the equipment was always powered on. Based on these preliminary observations, the objective of this project was to find out best practices and to determine what changes could be made within our laboratory environment to improve energy efficiency. This project produced a playbook covering several best practices and learnings For example, in Oulu, Finland, the team moved part of the laboratory equipment outdoors, therefore removing the need for additional power required for cooling the equipment, as was the case when the laboratory was inside the building. An outdoor lab saves energy while also releasing expensive indoor lab space. The calculated energy savings are up to 30%. We have also piloted an in-house software script, at a number of sites around the world, that automatically powers down equipment when it is not needed. These pilots achieve on average a reduction in power usage of 3%. During 2017 we implemented other site/country-specific energy projects across our company which helped us achieve our emission reduction targets. Below are a few examples: In India, we looked at a number of projects where we investigated the use of sensors, controls, and LED lighting. The results of these projects were shared as best practices. In the US and Canada, we also introduced Variable Speed Drives (VSDs). In terms of cooling solutions, we brought in adiabatic cooling in Poland, and free cooling/air flow improvements in Belgium. In the UK, we have introduced DALI lighting. In Finland at our Espoo site, we have also looked at an innovative arrangement in terms of Energy Service Contract (ESCo). ESCo is an approach whereby energy saving agreement is made with the energy service provider who agrees to make energy investments and share the savings with the customer. Our location in Sunnyvale achieved a LEED Gold certification under the US Green Building Council (USGBC) rating scheme. The project originally targeted a LEED certification for Fit Out and after some challenging issues a review identified the project was still capable of certification and the building received a LEED GOLD certification on 7 June 2017. Along with the incorporation of our own design standards which included sustainable products, all contribute to improving awareness and providing greater satisfaction and productivity In China, Nokia Shanghai Bell was awarded the LEED GOLD Certification. This is the highest recognition of NSB Chengdu project design and construction. LEED means leadership in Energy and Environmental Design. LEED is regarded as the most complete and influential standard to evaluate building design, construction and maintenance to promote Green concept. On Earth Day 2018 we were proud to be noted by the NYSE (New York Stock Exchange) with other companies on their celebration list of Great Companies doing great things for our environmental work We also ran an internal ‘Switch it off’ campaign around the world, encouraging our offices and sites to turn off the unnecessary lights and machines in unison with the world. Our offices around the world joined in and shared their pictures. Nokia Japan Nokia India Nokia Ecuador Car fleet, transportation, and distribution The reduced carbon intensity and reduced number of cars in our combined fleet led to a reduction of 6% in greenhouse gas emissions from the car fleet in 2017, compared with 2016. Policy and process harmonization has started and will continue in 2018, but the change in CO2 measurement will increase the official CO2 values of the cars from 2018 onwards. In transportation as in other areas of our business and operations, we aim to limit the use of natural resources. In transportation, we always drive to save space, reducing the amount of packaging materials used, and maximizing our transport efficiency through pallet or container load optimization, eliminating the need for additional trucks or containers where possible on both inbound and outbound shipments. In 2017, we reduced use of new packaging materials by 3 700 metric tons by taking the packaging coming from suppliers and reusing it in customer deliveries. The amount of new packaging is 1 400 metric tons less than in 2016. Our packaging designs use recycled materials in all aspects of our packaging where possible. OEM (original equipment manufacturer) packaging, such as packaging for cabinets, antennas, batteries, and cable reels, is typically 100% re-used. Small innovations also help. For example, the introduction of vacuum-formed plastic cushions manufactured from 100% recycled material on some products. This allows us to ship 25% more products on one pallet, thus reducing our transportation volumes and related CO2 emissions. Another example of a small innovation with a big result is the double-stacking of pallets for some products instead of usual single stacking on trucks between our supplier and our delivery hub, saving us between 17 and 24 truckloads per month and the related carbon emissions savings. Reducing our travel footprint Business travel includes flights, rail, rental cars, taxis, and public transport. Our reporting is based on the biggest contributor to business travel emissions, air travel, for which we calculate the CO2e emissions based on the number of miles flown. In 2017, our CO2e emissions related to business travel were around 98 000 metric tons, meaning a 14% decrease when compared to 2016. We use electric or low-emission cars wherever possible, organize shuttle buses between hotels, offices, and airports, and encouraged employees to use public transport and even ride-sharing applications. In Espoo, Finland we ran three different mobility pilots in autumn 2017 Our employees were able to experience new ride sharing commuting possibilities. The New Shared Mobility Study on Helsinki suggests that replacing private car travel with shared vehicles ends congestion, cuts emissions and frees public space. Our supply chain and the environment We also encourage our suppliers to report their climate impacts and set carbon reduction targets through the CDP Supply Chain Program. We insist that all our suppliers, except those with very low environmental impact, have a documented Environmental Management System (EMS) in place. For key suppliers and for those with greater impacts, it must be certified to ISO 14001. We actively track this compliance through audits and assessments. It is pleasing to note that 130 of our suppliers calculated a Nokia allocation of their emissions based on the products and services we purchase from them, and 49 suppliers provided emissions intensity data. In 2017, we achieved leadership level -A in both CDP and CDP Supply Chain for our work and reporting of carbon emissions. Waste and water We have put in place a variety of waste reduction, reuse, and recycling programs. Although we use very little water in our own operations (office bathrooms, kitchens, etc), we still wherever possible try to apply the latest technical innovations to monitor and reduce our water usage. In 2017 we developed new waste reporting guidelines, and introduced a new reporting tool to improve and ease the process and procedures for information gathering and accuracy. Engagement with our internal audience is key and we ran two internal campaigns #StopTheWaste and #StopTheEmissions, and also implemented new waste sorting instructions. The #StoptheWaste campaign involved 220 participating sites in 45 countries. In 2017, we used 2 331 000 m3 of water. Water use decreased by 14% compared to 2016. In 2018, we aim to reduce water consumption by 2% from 2017 levels.