Nokia: Nokia Oyj : 2024 sustainability report

Nokia 2024 Sustainability Statement General Environmental Social Governance Appendix to the 1 Introduction information information information information Sustainability Statement Sustainability Statement Introduction 2 General information 3 Basis for preparation 3 Governance 5 Strategy 12 Impact, risk and opportunity management 24 Environmental information 26 Climate change (ESRS E1) 26 Resource use and circular economy (ESRS E5) 44 Disclosure under the European Union Taxonomy Regulation 53 Social information 62 Own workforce (ESRS S1) 62 Workers in the value chain (ESRS S2) 71 Affected communities (ESRS S3) 78 Consumers and end users (ESRS S4) 82 Governance information 85 Business conduct (ESRS G1) 85 Appendix to the Sustainability Statement 96 Reference table 96 List of data points that derive from other EU legislation 103 General information Environmental page 3 page 26 Social Governance page 62 page 85 Nokia's Sustainability Statement 2024 prepared in accordance with the applicable laws and regulations has been published as part of Nokia's Annual Report for 2024 and is included under the Board review section. This document is an excerpt from Nokia's Annual Report and is published for convenience only. This document contains cross references to Nokia's Board review and the financial statements 2024 and it should be read in conjunction therewith, including, but not limited to, the risk factors included under the Board review. Nokia does not undertake any obligation to publicly update or revise this document, whether as a result of new information, future events or otherwise. Nokia 2024 Sustainability Statement General Environmental Social Governance Appendix to the Introduction information information information information Sustainability Statement 2 Introduction to 2024 Sustainability Statement Introduction Our approach to sustainability is built on our company's purpose - to create technology that helps the world act together. Sustainability is integral to our technology vision 2030, technology strategy as well as Nokia's business group product and operational strategies. This Sustainability Statement is prepared for the first time in accordance with the provisions of the newly applicable EU Corporate Sustainability Reporting Directive and with the requirements of the European Sustainability Reporting Standards. The Statement reflects Nokia's sustainability performance, impacts, risks and opportunities across environmental, social and governance dimensions. It is building upon Nokia's long-standing sustainability report, People & Planet, as well as on its renewed assessment of sustainability matters conducted through impact analysis and stakeholder engagement. Through this Sustainability Statement, Nokia attempts to demonstrate its commitment to transparent and responsible sustainability reporting, while also showcasing its strategic approach to managing sustainability impacts. Nokia acknowledges its role in global sustainability challenges and opportunities, including climate change mitigation and adaptation, social equity and responsible business practices. The 2024 Sustainability Statement covers Nokia's operations across all geographical locations and includes relevant information about our material value chain impacts, focusing on sustainability topics most relevant to Nokia's business model and operational context while ensuring compliance with mandatory disclosure requirements. Nokia welcomes feedback from stakeholders as it continues to improve and evolve its sustainability reporting practices. The current document fulfills a dual purpose: ensuring compliance with applicable reporting requirements, as well as drive sustainability performance improvements and stakeholder engagement across the entire organization in a strategic manner. By conducting this assessment of sustainability topics in accordance with the CSRD's double materiality perspective, Nokia has identified areas requiring focused attention and reporting under Climate change (E1), Own workforce (S1), Business Resource use and circular Workers in the value chain (S2), conduct (G1) economy (E5), Affected communities (S3), Consumers and end-users (S4), These material topics are interconnected and fundamentally interdependent, requiring an integrated approach to sustainability management and reporting, which ultimately reflects on Nokia's overall sustainability journey and ensures a comprehensive coverage of its performance and impacts. Nokia 2024 Sustainability Statement General Environmental Introduction information information General information Social Governance Appendix to the 3 information information Sustainability Statement General information Basis for preparation 3 Governance 5 Strategy 12 Impact, risk and opportunity management 24 Basis for preparation General basis for preparation of the Sustainability Statement For the reporting year 2024, Nokia is preparing the Sustainability Statement for the first time in accordance with the requirements of the Corporate Sustainability Reporting Directive 2022/2464/EU of the European Parliament and of the Council (hereinafter "CSRD") and requirements of the Commission Delegated Regulation (EU) 2023/2772 of 31 July 2023 (hereafter the "Delegated Regulation") as regards the European Sustainability Reporting Standards (hereafter "ESRS"). When referring to the various ESRS, the numbering in the Delegated Regulation is used. Finland transposed these requirements into national law on 21 December 2023, and they are in effect for the financial year 2024. These requirements are applicable to Nokia by virtue of Art. 3 and Art. 19a of Directive 2013/34/EU (the "Accounting Directive"), as modified by the CSRD. The content of the Sustainability Statement is prepared based on the double materiality assessment conducted by Nokia in accordance with the CSRD and the ESRS, which helped determine the material sustainability topics, and the related disclosures and information included in the Statement. The Sustainability Statement was prepared on a consolidated basis. The reporting scope for own operations is the same as for the consolidated financial statements. All statements on strategies, policies, actions, metrics and targets refer to Nokia. The Sustainability Statement takes into account certain relevant segments of Nokia's value chain where impacts, risks and opportunities are likely to arise from Nokia's sustainability perspective, and provides information on upstream and downstream activities in accordance with ESRS 1 General Requirements, as applicable. The statement indicates how Nokia's operations take into account and affect Nokia's stakeholders, their concerns and interests. The intended audience of this Sustainability Statement are Nokia's various stakeholders, primarily its investors. The Sustainability Statement does not include the digital XBRL sustainability tags in accordance with Chapter 7, Section 22, Subsection 1, Paragraph 2 of the Accounting Act, as it has not been possible to comply with this provision due to the absence of the ESEF regulation or other European Union legislation. The Sustainability Statement was subject to external limited assurance in accordance with ISAE 3000 (Revised). The Assurance report on the Sustainability Statement can be found on page 289 of Nokia in 2024 Annual Report . The assurance provider's opinion does not cover the comparative information that has been presented in the Sustainability Statement. Discontinued operations Nokia announced that it had entered into a put option to sell Alcatel Submarine Networks on 27 June 2024. The sale was completed on 31 December 2024. Beginning from the second quarter of 2024, the Submarine Networks business, which was previously reported as part of Nokia's Network Infrastructure operating segment, is presented as a discontinued operation in this report. As a result, the metrics for continuing operations and discontinued operations are disclosed separately herein, in the applicable topical standards. Nokia 2024 Sustainability Statement General Environmental Social Governance Appendix to the 4 Introduction information information information information Sustainability Statement General information continued Disclosures in relation to specific circumstances Time horizons The reporting period for the Sustainability Statement is consistent with the financial statements. Nokia is adopting short-term, medium-term and long-term time horizons as of the end of the reporting period and as defined by ESRS. Sources of estimation and outcome uncertainty Due to the extent of Nokia's value chain and the geographical spread of its operations, some of the quantitative metrics and monetary amounts included in this Sustainability Statement have a higher level of measurement uncertainty. Therefore, when quantitative metrics and monetary amounts cannot be measured or collected directly from its systems, Nokia has made use of assumptions and estimates with the purpose of enabling users to understand the most significant information, without undermining its usefulness or quality. Such estimates and underlying assumptions are believed to be reasonable under the circumstances. Processes and internal controls are implemented at various levels of the organization with the view of minimizing uncertainties and maintain transparency. However, there is still some degree of uncertainty and some inherent limitations in making accurate information available, especially information related to some specific resource use and circular economy metrics such as waste. Nokia is implementing and developing internal process to improve accuracy, primary-source data where possible and to close reporting gaps. Where estimations were used or where outcome uncertainties related to the metrics disclosed in the statement exist, this information is disclosed along with the respective metrics within each topical chapter in the section 'Reporting principles', to provide