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 |