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The principles and goals of sustainable development facilitate the work on corporate sustainability

In late 2015, we joined the United Nations Global Compact (UNGC) initiative as a supporting member. The initiative’s principles on human and labour rights, environmental protection and anti-corruption measures help us further improve the sustainability of our business and evaluate our activities annually.

In 2017, we also determined which of the UN’s sustainable development goals (SDGs) are important for our company. The SDGs enable us to examine sustainable business in the long term and on the international scale.

Our company’s commitment to international sustainable development goals helps us improve our corporate sustainability and support sustainable development globally.

Communication on Progress report for 2017

With the Communication on Progress (COP) report, we communicate how the Global Compact principles have been joined with the group’s business. We have integrated the COP report in the annual Corporate Sustainability Report in line with the GRI and UNGC instructions*. We estimate that this COP report meets the requirements of the “GC Active” level.

In the message from the President & CEO, you can read more about the importance of the UNGC principles and our commitment to their continuous development and integration with our business.

Based on a materiality analysis, we have specified our company’s special sustainability aspects. These aspects determine the sustainability management descriptions that are presented in the report. Two of them, descriptions of the management systems for the personnel and environment, cover the Labour and Environment themes of the GC principles. Our company does not have management descriptions that specifically focus on human rights and anti-corruption activities. Rather, these topics are included in Nokian Tyres’ Ethics Guidelines, which state that our company does not approve of any type of corruption, such as giving or receiving bribes, blackmail or abuse of a public office. Here you can learn more about our Ethics Guidelines and the management systems that guide them.

Key changes in 2017 to the management systems that guide the Global Compact principles

As our most important management improvement in 2017, we started our work on a human rights impact assessment across our group, which continues in 2018. We updated the Ethics Guidelines for Nokian Tyres Group in spring 2017. This year, we also revised our environmental policy and renamed it the Environmental, Safety and Quality Policy.

In order to improve supply chain sustainability, we started a partnership with an external auditor in 2016. Our separate sustainability auditing process has been developed together with an expert company and it is based, among other things, on Nokian Tyres’ Supplier Code of Conduct and principles that comply with the UN Global Compact goals.

We have set a goal to audit all of our major rubber processor partners by 2020, comprising at least 80% of our natural rubber purchasing volume. Audits support and facilitate the companies’ improvement of occupational safety and the development of activities. In 2017, we audited four areas and initiated corrective programmes to address the shortcomings identified in the process. This includes first aid training and the revision of employment contracts as well as the repair and cleaning of accommodation facilities. We will review the implementation of the corrective actions in 2018.

We intend to conduct at least four new audits in 2018.

In Russia, we have actively participated in discussions for improving tyre recycling. Together with some other major tyre manufacturers, we established the Eco tyre association that manages tyre recycling for actors in the tyre industry. The association started its activities in 2017.

COP and Nokian Tyres’ GRI reporting

In the report, the GC principles are combined with our materiality analysis and value chain. This enables using the GRI Standards reporting indicators for tracking the completion of the GC principles and highlighting the areas in our business where the principles have the largest impact. The GRI Standards table presents the indicators that also track our progress with the GC principles. You can read more about the materiality analysis here and about our value chain here.

* Making the Connection: Using the GRI G4 Guidelines to Communicate Progress on the UN Global Compact Principles. When preparing this report, no procedures combining the GRI Standards framework with COP reporting were available. Therefore, this report utilises the previous year’s GRI G4/COP instructions.

Sustainable Development Goals provide a long-term perspective

In 2016, the United Nations published 17 Sustainable Development Goals (SDGs) for 2030. The goals provide an opportunity to examine sustainable business in the long term.

In 2017, we started a process for determining which SDGs are important for Nokian Tyres. The purpose of this work is to identify future sustainable business opportunities and improve the dialogue with stakeholders by offering a common language based on which our corporate sustainability can be evaluated on the international scale.

Our own process is just beginning, but we have so far selected seven SDGs whose completion we believe we can facilitate through our own activities. We can influence the first five goals on the list the most and are still in the process of evaluating our impact on the remaining two goals.

3 Good health and well-being
3 - Good health and well-being

5 Gender equality
5 - Gender equality

8 Decent work and economic growth
8 - Decent work and economic growth

12 Responsible consumption
12 - Responsible consumption and production

13 Climate action
13 - Climate action

9 Sustainable industry, innovation and infrastructure
9 - Industry, innovation and infrastructure

11 Sustainable cities and communities
11 - Sustainable cities and communities

We have not yet linked the goals to individual GRI Standards disclosures in this report. However, the main disclosures that the selected SDGs are related to are marked with the UN SDG logos and included in the GRI comparison table. The work for implementing the goals in Nokian Tyres’ business continues in 2018.

For more information about the UN Sustainable Development Goals and their implementation in business activities, please visit https://sdgcompass.org/.