Responsible Sourcing
We drive active engagement across our value chain, working with our suppliers to raise the standards in our ecosystem in key ESG areas like the environment (climate and circularity), labor rights and ethical behavior. We have designed our sustainable sourcing program around four core pillars based on materiality assessment and group sustainability priorities: Supplier Due Diligence, Climate, Circularity, Responsible Minerals Sourcing, complemented by supplier development and learning and industry collaboration as key enablers for success.
We work with our suppliers to develop, innovate and build capability to enable a more sustainable and transparent ecosystem. We engage with our customers to drive improvements and share best practices in our common supply chain as well as collaborate across the ICT industry for greater impact.
Our supply chain approach
Robust procedures and processes
Robust procedures and processes
We have robust procedures and processes in place, and we continually improve them where necessary. These are supported by clear, well communicated policies. We identify and understand the risks associated with our supply chain and build and implement the programs and actions that help mitigate those risks. We employ a variety of audits and assessments to verify the integrity of our supply chain. We engage and increase supplier capabilities through learning and where necessary instigate remediation activities. We maintain a Corporate Responsibility risk map of our suppliers which we update regularly.
Awareness raising and climate data collection
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. We also send out an annual climate assessment questionnaire via CDP to nearly 600 suppliers. For further information, you can read more in the supply chain section of our Environment webpage.
Combatting modern slavery, forced labor and labor migration risks
Modern slavery and forced labor of all kinds remain a challenge for all countries and supply chains.
We have robust audit and assessment processes and procedures in place. We continue to raise awareness of modern slavery, forced labor and labor migration through workshops and training with suppliers to ensure good labor practices and inclusion and diversity in their operations. We do not tolerate slavery, servitude, human trafficking or forced or compulsory labor in our own operations or in our supply chain. In June 2024 we published our annual Modern Slavery Statement.
Materials traceability and conflict minerals
We aim to contribute to a long-term solution to the issue of minerals sourcing 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. Our due-diligence approach is aligned with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals. We are part of the RMI program under RBA and have released a Conflict Minerals Report every year since 2013.
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 2024, our manufacturing suppliers completed the CDP Water Security assessment, representing 52% of our total supplier spend. Out of the participating suppliers, 80% had undertaken a water-related risk assessment for their direct operations and identified actual water-related risks in their operations such as flooding or increased water stress or scarcity, potentially resulting in the reduction or disruption in production capacity or increased operating costs. 48% of suppliers had structured targets related to water consumption, discharge or withdrawals. Targets were mostly related to internal efficiencies rather than being contextual.
Supplier learning and capability building
In addition to auditing and assessing our supplier performance across ESG topics, we also put significant effort into our supplier capability building in collaboration with a range of partners (see partners section) as well as directly. Our sustainable supply chain team has hundreds of follow up sessions with suppliers around their performance improvement. We also conduct and deliver training webinars online and onsite including topics such as diversity and inclusion, modern slavery, responsible minerals sourcing, climate change, health and safety, and ethical business practices.
Health and safety supplier maturity assessment (SMA)
Health and safety in our supply chain is a non-negotiable – it is our priority. Many of our subcontractors work at height with electricity, and they need to drive long distances as part of their work on our behalf.
We have set stringent KPIs related to our health and safety Supplier Maturity Assessment (SMA), which is our in-house-developed assessment. This assessment helps to ensure that contractors know Nokia’s health and safety requirements and are capable of delivering work safely on our behalf. It also helps ensure that projects have risk-mitigation procedures and controls in place. We also conduct supplier training to provide awareness of potential dangers related to their work and to ensure that the correct safety equipment is used as required.
At the end of 2024, 98% of high-risk activity services suppliers were covered by our SMA. 98% of assessed suppliers met health and safety “Compliant Supplier” status (score of 3 or more out of 5). Any supplier not meeting our health and safety requirements was, in the case of a new supplier, blocked from qualification, and in the case of an existing supplier was to be phased out or required a thorough improvement where we had no alternative supplier.
Recognizing supplier achievements
Sustainability is one category in our annual Supplier Diamond Awards alongside the Quality Award and the Innovation Award. The Supplier Diamond Awards are Nokia’s annual recognition program to reward supplier excellence across several categories including sustainability. Suppliers present their cases in front of expert juries and are recognized at our annual supplier event, in the presence of Nokia top leadership.
Previous winners in the sustainability category include 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.
Industry collaboration
Nokia is very active in various industry forums around sustainability issues. Below is a list of organizations that we collaborate with around responsible sourcing and supply chain topics.
Responsible Business Alliance (RBA)
Nokia is a member of the RBA, a coalition of the world’s leading companies working together to improve efficiency and social, ethical, and environmental responsibility in the global supply chain. As a member we endorse the role that industry collaboration plays in improving challenging issues. We participate in various networks and working groups within RBA, such as the Responsible Minerals Initiative (RMI). We support the mission of the Alliance and have adopted the RBA Code of Conduct as the basis for the requirements we place on our suppliers, further supplemented by Nokia own supplier requirements.
Sourcing and supply chain issues are ever more complex and we believe can be addressed more effectively via industry collaboration and shared efforts that are built on common working groups and understanding. We also look forward to contributing with our years of experience in sustainability and responsible sourcing issues worldwide.
CDP (Climate and Water)
Collaboration on annual assessment of supplier climate emissions, water use and supplier learning and capability building on these topics.
EcoVadis
Collaboration on supplier assessment, improvement, and training across sustainability portfolio including labour, environment, ethics and supply chain.
Joint Audit Cooperation
Nokia collaborates with our telecom customer network JAC on supplier audits, corrective actions and capability building.
Public-Private Alliance for Responsible Minerals Trade – RESOLVE
For upstream engagement around responsible minerals trade we have continued our work with the Public-Private Alliance, contributing to the development of in-region programs for responsible minerals trade.
Public-Private Alliance for Responsible Minerals Trade - RESOLVE
Sourcing and supply chain issues are ever more complex and we believe can be addressed more effectively via industry collaboration and shared efforts that are built on common working groups and understanding. We also look forward to contributing with our years of experience in sustainability and responsible sourcing issues worldwide.
Long term targets and commitments
