Sustainability management

Sustainability is a natural part of our business: sustainable product development, safe and eco-friendly products and high standards of quality in what we do. We ensure that our actions do not harm the environment or people. Our tyres are easy on the environment, and even under difficult conditions, they will help you reach your destination. Our business must be profitable so that we are able to offer security, work and well-being for our personnel, and also consider investors, customers and other stakeholders. Sustainability is an essential part of our daily work and leadership, which is mainly guided by the group strategy.

Our group strategy in a nutshell

We have combined our values, strategy, goals and Must-Wins into one picture that visualises how we build our success sustainably and continuously improve our operations together.

Our values guide us to succeed

Our company culture, the Hakkapeliitta Spirit, lays a solid foundation for improving our company and building success. The basic elements of the Hakkapeliitta Spirit are our values, which guide and support the implementation of our strategy.

  • Inventiveness: We develop and create things and boldly question the existing practices!
  • Entrepreneurship: We want to be the best and most sustainable tyre company!
  • Team spirit: We respect and support each other!

Our strategy and goals provide the guidelines for our business

Our strategy of focus areas builds around our role as an expert in challenging conditions: we ensure that our customers receive a safe, high-quality and eco-friendly tyres as well as the excellent service in the industry. Our unique work community develops and manufactures premium tyres whose clever innovations provide added value in different applications, from forestry work to safe driving on highways. A committed and extensive distribution network and effective logistics help us ensure the good availability of our products throughout the peak season. We focus on regions where the driving conditions are demanding due to the changing seasons, and sell the majority of our products in the aftermarket.

The values and strategy form our short-term roadmap (Must-Wins) and the goals that keep us on the path to profitable growth. We want to be the leader in premium tyres in our key markets and a tyre technology pioneer. We aim to grow faster than the market each year and provide the best products and services in the industry. We intend to offer a stable dividend policy for shareholders and an excellent and inspiring work community for our personnel. We want to be the top consumer choice and our customers’ number one partner.

Systematic leadership of sustainability improves the operations and company culture

Our strategy of focus areas also guides our choices in terms of sustainability. We work hard together for improving the sustainability of our company, functions and products.

We take into account the entire product lifecycle and all of our business functions, and intend to go beyond the minimums required by the law and applicable standards. We emphasise the management of sustainability in every function and all of our supply chains. We want to be the most sustainable and ethical tyre company and an industry pioneer.

Our sustainability functions are led by Vice President of Quality, Sustainability and ICT, who is ultimately responsible for meeting the goals of corporate sustainability. This person is also part of the group’s management team.

All supervisors’ duties include day-to-day leadership of sustainability. Larger topics and guidelines are discussed by the management team and, if necessary, by the Board of Directors.

The Nokian Tyres’ dedicated Corporate Sustainability workgroup comprises finance, purchasing, communication, environment, quality, consumer, customer service and HR experts. The workgroup’s main task is to design and promote measures for better sustainability. Then, each unit’s management team is responsible for implementing the measures according to their unit strategy.

The Safety Management group, which comprises safety experts and management representatives, works on and tracks the safety aspects. Sustainability of the purchasing chain is being developed and guided by the Sustainable Purchasing workgroup. The Energy Efficiency workgroup promotes means for improving energy efficiency throughout the group. Product Development creates safer and more eco-friendly products by reducing rolling resistance, for example.

Department-specific occupational health and safety groups, environmental representatives and other local workgroups focus on improving practical work in terms of eco-friendliness, safety and well-being. Each Nokian Tyres’ employee is responsible for working and acting ethically.

Furthermore, HR, Communication and the Risk Management workgroup support the work for improving the safety culture and implementing changes in the group.

The following graph describes the leadership of sustainability at Nokian Tyres.

Five areas of sustainability

We have divided corporate sustainability into five clear categories: Hakkapeliitta Way in corporate sustainability, Economy, Planet, People and World on Wheels – product liability.

The Hakkapeliitta Way category comprises five sustainability principles in our group that are connected with our strategy:

  • Transparent and comprehensive reporting: As a public company, we follow the statutory requirements and the rules of the stock exchange on the publicity of information that is relevant to our business. We also follow the principle of transparency in line with the Global Reporting Initiative guidelines. We aim at meeting all of our stakeholders’ reasonable requirements.
  • Business ethics and compliance with the laws and regulations: We follow the board-approved Ethical Guidelines in our business. They specify the ethical principles for our business, instructions for ethical issues and a code of conduct. We follow the law and the group’s internal guidelines and respect the spirit of the law in every country of operation.
  • Responsible purchasing of raw materials, goods and services: We follow the UN Global Compact principles as well as our own ethical guidelines, which also address the issues of responsibility in the purchasing chain. Furthermore, we require all of our raw material suppliers to adhere to our Supplier Code of Conduct and to have an ISO 9001 certified quality management system in place. Our goal is for all suppliers to have valid ISO 14001 environmental certification.
  • Good corporate citizenship: We are committed to supporting good corporate citizenship, sustainable development and continuous improvement. We want to take care of our stakeholders, financial standing and environment as well as to produce premium products and offer first rate service.
  • Active stakeholder engagement: Active stakeholder engagement helps us to better understand our stakeholders’ expectations. Different stakeholders may have conflicting expectations for our operations. This poses a challenge in active stakeholder engagement and communication.

The figure below presents our areas of sustainability as well as the essential principles, commitments and guidelines that guide our business.

Read also our Commitment to Quality and Sustainability and learn more about the different areas of sustainability management and their materiality. The Commitment to Quality and Sustainability comprises our valued quality and sustainability promises and the measures for meeting them.

Sustainability goals guide our operations

The corporate sustainability goals act as beacons that clearly guide the development of our operations.

Sustainability goals for 2017–2020

Hakkapeliitta Way

General sustainability of our business

  • We will improve our Dow Jones Sustainability Index assessment by two points each year from 2015 >> 2020
  • All of our raw material suppliers will have conducted a sustainability self-assessment in 2017
  • All of our natural rubber processors in Asia will have been audited by 2020
  • At least two out of three of our raw material suppliers will have ISO 14001 certification in 2020

World on wheels

Safe and eco-friendly products

  • We will cut CO2 emissions from traffic by 500 million kg annually by reducing the rolling resistance of our products by 7% from 2013 >> 2020
  • Each new product generation will have a lower rolling resistance compared to the previous one

Economy

High customer satisfaction and profitable growth

  • We will continuously improve customer satisfaction – by one percentage point, at a minimum, in the annual customer satisfaction index

People

Safe working environment and sustainable company culture

  • Occupational health and safety: 70% improvement in the LTI1 accident frequency tracking from 2015 >> 2020
  • Everyone gets to go home healthy every day
  • Everyone in our group will have completed the online course on sustainability in 2017

Environment

Being a pioneer in environment responsibility

  • Energy efficient production: we will cut our energy consumption annually by 1% from 2016 >> 2020
  • We will cut our CO2 emissions from production by 20% (kg CO2/kg product kg) from 2013 >> 2020 (scope 1 and scope 2)
  • We will cut the use of municipal water by 25% compared to the 2013 baseline
  • We will utilise 100% of our production waste and take no production waste to landfills; Nokia 2016, Vsevolozhsk 2020
  • Zero environmental accidents

This page is included in KPMG’s assurance scope. Assurance report can be found here.