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Our governance and materiality

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Our sustainability and corporate responsibility activities focus on the topics that are most important, or material, to our business. We use a combination of factors to identify material topics, analyzing the shared value for people, the planet, and our company. These include:

  • Nokia’s renewed 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 the 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.

In 2016, we reviewed and updated our materiality analysis whereby we systematically evaluated more than 40 sustainability topics selected based on the above criteria. Each topic was carefully defined and weighed against its impact on our commercial success and sustainable development - including UN Sustainable Development Goals, and also taking into account the possibilities we have to influence sustainable development throughout the value chain

As a part of the analysis we conducted close to 50 interviews with Nokia experts representing all the key sustainability related areas within the company, customers representing both traditional and new customer segments, and investor, employee, UN and NGO representatives. The analysis was also reviewed in Nokia Responsibility Council, Board of Directors, and by external sustainability experts.

The results of the materiality assessment helped us to identify the key topics and focus areas and set the long-term targets for the most material areas. Compared to our earlier sustainability materiality analysis, some of the key findings during the 2016 analysis were:

  • Overall the importance of sustainability has to some extent increased
  • No issue has clearly declined in importance
  • The issues with already high importance like connecting people and things, ethical business practices and product energy efficiency continue to increase in importance
  • The highest increase in materiality is with the issue sustainability related products and services. The 2nd highest increase is in privacy & data security
  • Our re-entry into consumer business increases the importance of several issues
  • New emerging issues in Nokia materiality map - both of which were earlier included in the other issues: Materials traceability and conflict minerals and Diversity, inclusion, and anti-discrimination

How we manage sustainability and corporate responsibility

Sustainability and corporate responsibility issues are reviewed regularly at all levels within Nokia, including by the Nokia Board of Directors (the “Board”). Our sustainability strategy and governance were realigned to our renewed strategy and business focus and new governance was implemented in 2016.

We have strong governance structures and practices in place to manage ethical business practices and corporate responsibility at Nokia. Our Code of Conduct sets out our expectations for employees across the company. The code is supported by policies and management systems related to responsibility issues. Our aim is to ensure that social and environmental matters are taken into account in everything we do.

Our sustainability governance

Sustainability and corporate responsibility issues are reviewed regularly at all levels, including the highest decision-making bodies of the company. The highest decision-making body at Nokia after the General Meeting of shareholders is the Board of Directors, which reviews annually the company’s overall sustainability activities and in addition specific topics when needed.

In 2016 the Board reviewed the Nokia sustainability focus areas, priorities, their alignment with the UN SDGs, targets and performance, new materiality analysis with key sustainability topics and their impact on business success & sustainable development. The board also reviewed the new Corporate Community Investment (CCI) approach and approved the CCI and University donations budget for the year 2017, and had a cybersecurity/ information security update.

The Nokia Group Leadership Team, chaired by the President and CEO, is responsible for managing our operations. This includes reviewing and approving our policies and main responsibility initiatives. They also approve Nokia’s sustainability strategy, longterm and annual targets, the annual sustainability report, as well as how we link sustainability performance into our rewarding system. They review and give feedback at least twice a year. In 2016, our Executive Vice President for Marketing and Corporate Affairs was responsible for corporate responsibility at the executive management level.

Our Corporate Responsibility Council, which consists of senior representatives – typically leadership team members from our business units and support functions – meets quarterly and ensures alignment across the business on responsibility strategy, priorities, and the implementation of responsibility activities.

Our Corporate Responsibility team develops together with business representatives the responsibility framework that outlines our priorities, targets, and policies. The team drives and advises on responsibility initiatives throughout the business, and works together with representatives and subject-matter experts from our business units to develop and implement processes and activities to achieve our environmental and social targets and supports in related stakeholder communications.

Our Ethics and Compliance Office supports employees in making decisions that are ethical, legal, and consistent with Nokia’s values. The team also investigates any concerns about potential breaches of our Code of Conduct.