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CLIMATE CHANGE-RELATED RISKS AND OPPORTUNITIES

In 2019, we conducted a workshop on climate change-related business risks and opportunities
aligned with the recommendations of Task Force on Climate-related Financial Disclosures (TCFD).

In April 2019, the Quality and Sustainability Department organized a dedicated crossfunctional workshop on climate change-related business risks and opportunities.

The aim of the workshop was to identify top three climate risks for Nokian Tyres in each of the sub categories: physical, regulatory, market, technology and reputational risks. This was conducted along the recommendations of Task Force on Climate-Related Financial Disclosures. The workshop was facilitated by environmental experts.

Nokian Tyres is also committed to setting Science Based Targets in order to further reduce greenhouse gas emissions. In May 2020, these SBT’s were officially approved.

CLIMATE-CHANGE RELATED RISKS

Risk group Sub category Examples of concrete risks
Regulatory Emerging regulation

Further green labelling

Stricter expectations to oversight
Deforestation-related regulation, mostly concerning natural rubber
Physical Extreme weather events

Extreme temperatures
Disruptions in logistics

Contamination of raw materials
Technological Climate-related demands for new tire technology

Materials technology


Requirements for non-renewable material replacements
Market and reputation Market changes


Reputational risk
Shift from car ownership to mobility-as-a-service i.e. changing customer base

Deforestation scandals (natural rubber)

CLIMATE-CHANGE RELATED OPPORTUNITIES

Opportunity group Sub category Examples of concrete opportunities
Innovation Raw materials

Recycling

Climate-friendly tech

Energy-efficient production

Innovations with renewable materials


Product range Competitive advantage

EU trial labelling for sustainable tires


Industrial (heavy) tires


Existing focus on sustainable natural rubber, for instance sustainability audits since 2016

Expertise to provide climatefriendly solutions
Engagement Consumers

Policy makers

Shareholders/stakeholders



Increased preparedness for new regulations or incentives

 

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