We aim high

We aim high

Nokian Tyres sees official permits as minimum requirements and considers eco-friendliness to be much more than simply complying with the permit limits.

Our environmental and quality targets are specified in the company’s quality and sustainability strategy, which is drawn up for a period of five years.

Vice President, Quality & Sustainability is involved in drawing up the strategy along with the Environmental and Responsibility Manager, who reports to the vice president. Working together with environmental experts, the Environmental and Responsibility Manager prepares an annual environmental program for the factories. The program specifies the detailed targets, actions, schedules and responsible persons for the goals presented in the strategy. In addition, individual units have their own projects for developing the operations and processes.

The development of environmental aspects and quality is reviewed regularly at the management meetings.

In 2020, Nokian Tyres became the first tire company to have its' ambitious targets for reducing CO2 emissions approved by the Science Based Targets initiative (SBTi). 

NOKIAN TYRES’ SCIENCE BASED TARGETS 
Target What it means Examples
Reduce emissions from tire raw material production by 25% We expect our raw material producers to implement their own actions in order to reduce emissions. Raw material producers will be transitioning to zero or low-emission energy and improving the energy efficiency of the entire production process.
Reduce CO2 emissions by 25% in logistics  Achieving it requires emission improvements from road, train, marine and air transportation. Increasing the share of biofuels, improving the efficiency of engines, and optimizing routes further are key methods.
Reduce CO2 emissions from tire use by 25% This improvement will have the largest impact on reducing global CO2 emissions, as our tires are used on millions of vehicles. The overall reduction of vehicle emissions plays a big part in improvements. Lowering the rolling resistance of a tire also reduces the fuel consumption of the vehicle.
Cut CO2 emissions from the energy that is purchased and produced by 52%  Emissions produced mainly in our own production facilities. A part of this target has already been achieved with the changes made in recent years. Most of the energy that we purchase should be low-emission or zero-emission and produced with renewable forms of energy. Improvements in energy efficiency will also reduce emissions.
Nokian Tyres' sustainability goals for 2025
Area Goal for 2025 Goal beyond 2025

Climate actions

 

 

  • Energy efficiency: 10% relative improvement (kWh / kg) (base year 2015)
  • Scope 1 & 2 GHG emissions: 52% relative reduction 2015-2030 (CO2 kg / product kg)
  • Scope 3 GHG emissions from raw materials production: 25% relative reduction 2018-2030
  • Scope 3 GHG emissions from logistics: 25% relative reduction 2018-2030
  • Scope 3 GHG emissions from product use: 25% relative reduction 2018-2030
  • Carbon neutrality in 2045 (common goal for Finnish chemical industry)

Other environmental actions

 

  • Zero waste to landfill from all three factories.
  • Regulated emissions to air: Fulfil all local authority requirements.
  • Avoiding environmental accidents: O accidents per year.
  • Material recovery rate of factory waste (instead of burning into energy): Increase 10% (base year 2020)
  • Renewable ground water and municipal (third party) water use in our factories: Maintaining the industry leading water efficiency below 2 l/product kg and improving it with minimum 1 % annually
 

People

   

  • Developing Human Rights policies.
  • Accident frequency LTIF: Decrease from 8,3 in 2018 to 1,5.
  • Safety participation level: safety actions from 100% of personnel.
 

Supply chain

  • Creating and implementing a Policy for Sustainable Natural Rubber Procurement.
  • Complete on-site sustainability critical audit program: 100 % audited.
  • Sustainability critical/medium criticality suppliers self-assessments:
    • 2022: 100% of suppliers filled out self-assessment
    • 2025: 100% approved responses.
  • Implement supplier minimum safety requirements agreement appendix: 100% safety critical suppliers signed the safety appendix.

 

Products and services

 

  • 3 new environmental product innovations.
  • No SVHC (substances of very high concern) substances in raw materials.
  • Winter tire safety performance level: 100% of Nordic Hakkapeliitta winter car and SUV tires fulfill the new 2021 EU ice grip criteria.
  • Rolling resistance performance: By 2025 we will have more than 60 products in the best EU rolling resistance category A.
  • Increase the share of either recycled or renewable raw materials in tires to 50% by 2030.

Finance, Corporate Governance

  • TFCD reporting of climate risks: Regular evaluation & update.
  • Overall B2B customer satisfaction: NPS (Net Promoter Score) minimum 40 every year
 

Communication & Stakeholder engagement

  • Wide stakeholder expectations mapping/study every 3 years.
 

 

NOKIAN TYRES SUSTAINABILITY GOALS 2015-2020
Area of sustainability Goal Status

Managing sustainability

 

  • We will improve our Dow Jones Sustainability Index assessment.
  • Achieved. Improved our total score by 8 points compared to 2016. Nokian Tyres is included in the DJSI World index as well as in the more strictly defined DJSI Europe index.

Products

 

  • Reducing the rolling resistance of the product range by 7% from 2013 to 2020, thereby creating a decrease of 500 million kg in CO2 emissions from traffic.
  • Each new product generation will have a lower rolling resistance compared to the previous one.
  • Achieved. We reached the goal already in 2017. In 2020, the rolling resistance was reduced by 8.5% in average compared to 2013.

People

 

  • Occupational health and safety: A 70% improvement in the LTIF injury frequency rate tracking from 2015 to 2020. Everyone gets to go home healthy every day.
  • Achieved. In 2020, the LTIF injury frequency improved and was 3.7 (13.9 in 2015). This is a an improvement of 73%.

Environment

 

 

  • Energy efficient production: decreasing energy consumption annually by 1% from 2016 to 2020.
  • A 20% reduction in CO2 emissions from production (kg CO2 per kg product) from 2013 to 2020 (scope 1 and scope 2).
  • Reducing the use of municipal water by 25% compared to the 2013 baseline (m3/product ton).
  • Utilizing 100% of production waste and taking no production waste to landfills; Finland 2016, Russia 2020.
  • 0 environmental accidents.
  • Energy: Not achieved. The total reduction was 10.4% between 2016 and 2019, but in 2020 the consumption increased mainly due to the lower production levels during the pandemic.
  • CO2 emissions: Achieved. The actual reduction from production was 33% in 2013–2020.
  • Water: Achieved. In 2020, the consumption of municipal water was approximately 30% lower than in 2013.
  • Waste: Achieved in Finland, where 100% of production waste was recycled. Nearly achieved in Russia and the US where 99% of production waste was recycled in 2020.
  • Environmental accidents: Achieved. No environmental accidents occurred in 2015–2020.
Economy
  • Our financial target is to earn good returns for our shareholders: dividend above 50% of net earnings.
  • Partly achieved. In 2020, we paid a dividend of 1.14 EUR per share, which was 40% of our net earnings. In 2019, our dividend was 74% of our net earnings. The decline was due to the effects of COVID-19.

Supply Chain

 

  • All of our raw material suppliers will have conducted a sustainability self-assessment in 2017.
  • We will have audited all of our major rubber processor partners (at least 80% of our natural rubber purchasing volume) by 2020.
  • At least two thirds of our raw material suppliers will have ISO 14001 certification in 2020.
  • Self-assessments: Not achieved. In 2019, 89.6% of our raw material suppliers had responded to the sustainability self-assessment survey. In 2020, development was no longer tracked.
  • Audits: Achieved. By 2020, we had audited 90% of our major rubber processor partners.
  • ISO 14001: Achieved. In 2019, 73.3% of our raw material suppliers had ISO 14001 certification. In 2020, development was no longer tracked.
Environmental violations     
Significant* fines or penalties related to the environment or ecology  
 Year 2017 2018 2019 2020
Number of violations 1 0 0 0
Amount of fines/penalties (€) 56,000 0 0 0
*Significant is defined to have a financial impact above $10 000 USD.   

Back to Environment or Go to Energy and emissions section