Sustainability is a natural part of our business: it means sustainable product development, safe and eco-friendly products as well as high standards of quality in everything that we do. We ensure that our activities do not harm the environment or people. Our tires 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, while also considering investors, customers, and other stakeholders.
Sustainability is guided by the Group strategy and values.
Our company culture, the Hakkapeliitta Spirit, comprises our values, goals, leadership, and everyday work. At the core of the Hakkapeliitta Spirit are our values, which drive our success by winning together, enable our business to grow profitably and guide our day-to-day operations.
Nokian Tyres’ values are:
• Entrepreneurship: We set ambitious objectives and perform our work with persistence. Customer satisfaction is our first priority.
• Inventiveness: We have the skill to survive and excel, even in the most challenging circumstances.
• Team Spirit: We work in an atmosphere of genuine joy and action. We work as a team, relying on each other.
SUSTAINABILITY GOALS GUIDE OUR OPERATIONS
Our everyday improvement of sustainability is guided by the Group’s sustainability goals and the road map plan that we update yearly. The target time for the current road map projects and the Group’s sustainability goals is 2020.
In 2015, we made the Nokian Tyres Sustainability Road Map to guide our work on sustainability. The road map defines seven areas of sustainability and their related projects. The projects are led by the Corporate Sustainability working group, which is headed by the Environmental and Responsibility Manager. The progress with the road map processes is tracked on a monthly basis.
Nokian Tyres sustainability road map for 2020
|Climate actions||Climate risks and adaptation
Product development and R&D
|Other environmental actions||Compliance
|Supply chain||Risk management
Natural rubber sourcing
|Products and services||Materials
|Finance, Corporate Governance||Governance & Compliance
Value creation for the society
|Communication & stakeholder engagement||Reporting
SYSTEMATIC LEADERSHIP OF SUSTAINABILITY
The company’s sustainability activities are led by a member of the Group’s management team who is ultimately responsible for meeting the goals of corporate sustainability.
All supervisors’ duties include day-to-day leadership of sustainability. Ambitions, targets, and other key topics are discussed by the Management Team and at least once a year by the Board of Directors.
Corporate Sustainability working group comprises finance, purchasing, communication, environment, quality, consumer, customer service, and HR experts. The working group’s main task is to design and promote measures for improving sustainability. 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.
Sustainable Purchasing working group develops and guides the supply chain sustainability.
The Energy Efficiency working group promotes the means for improving energy efficiency throughout the group.
Product Development creates safer and eco-friendlier products by reducing rolling resistance, for example.
Department-specific occupational health and safety groups, environmental representatives and other local working groups focus on improving the practical work in terms of eco-friendliness, safety, and well-being. Each Nokian Tyres’ employee is responsible for working and acting ethically.
HR, Communication, and the Risk Management working group support the work for improving the safety culture and implementing changes in the group.
Environmental management is guided by the following policies: The Environmental, Safety, and Quality Policy guides environmental aspects in our Group. The policy has been approved by the President & CEO. The environmental aspects are also discussed in our Code of Conduct.
Our activity management system is based on the ISO 9001, IATF 16949, ISO 14001, OHSAS 18001, and ISO 17025 standards and meets the applicable regulations and customer demands. We are also committed to following the UN Global Compact principles.
Our goal is to manage the environmental impacts of our products over their entire life cycle and address the safety and quality aspects of our operations in a comprehensive and systematic manner. The activity management system that covers the environmental aspects, safety, and quality serves as a key tool for this purpose. Our operations manual is ISO 14001 compliant in terms of the environmental aspects and ISO 9001 compliant as regards quality. The key document that guides our environmental protection efforts is the Environmental Protection procedure.
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 and updated annually. 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 each quarter at the management meetings. The senior management provides direct feedback to the responsible persons, as needed.
Our Group’s sustainability efforts are coordinated by the Environmental and Responsibility Manager. Environmental and chemical safety and sustainability aspects belong to the Quality and Sustainability unit, and the overall efforts are coordinated globally by Vice President, Quality
& Sustainability together with Senior Vice President Supply Operations.
The goals of quality and sustainability management are accident prevention, uninterrupted production, ensuring high quality and good corporate citizenship in all areas of operation.
Environmental engineers take care of practical environmental coordination and training, for instance regarding chemicals, emissions, and waste. In Nokia, the environmental representatives and supervisors of individual departments address environmental responsibility alongside their other duties. The environmental representatives act as their departments’ environmental experts and points of contact in the interaction between departments. They also coordinate the appropriate handling of chemicals and waste in their departments.
COMPLAINT MECHANICS IN ENVIRONMENTAL RESPONSIBILITY
We document the annual environmental impacts of our tire factories and report them to the local authorities as required in each country. We record feedback to a register and take the necessary corrective actions.
Our factories’ environmental experts are responsible for these records. The purpose of this practice is to collect the feedback on the status of our environmental aspects and consider our stakeholders’ related requests and opinions.
We have taken a two-tiered approach to the management of environmental complaint procedures. If the complaint is minor in the scope of Nokian Tyres’ production, an environmental expert can handle it independently and/ or the manager decides on the necessary course of action.
In case of a larger event, the decision to escalate the matter is taken in Nokia by Vice President, Quality & Sustainability and in Vsevolozhsk by the production manager and then, if necessary, by the line management.
In its decision-making and administration, Nokian Tyres adheres to the Finnish Limited Liability Companies Act, the Finnish Securities Markets Act and the rules issued by Nasdaq Helsinki Ltd, Nokian Tyres’ Articles of Association, and the Finnish Corporate Governance Code 2015 for listed companies. Nokian Tyres complies with the code without exceptions. The code is published here.
The Corporate Governance Statement has been prepared pursuant to the Finnish Corporate Governance Code 2015 for listed companies and the Securities Markets Act (Chapter 7, Section 7) and it is issued separately from the Board of Directors’ report. The Board of Directors has reviewed the Corporate Governance Statement, and the auditor KPMG as verified that the Statement has been issued and that the
description of the main features of the internal control and risk management systems relating to the financial reporting process is consistent with the financial statements.
At Nokian Tyres, our need to develop leadership processes and practices always arises from a business perspective, and their implementation is based on our strategy and organizational culture. Our aim is to establish consistent and truly global HR operations that are based on efficient decision-making and project management as well as open interaction and information sharing. These elements help us implement fair, transparent, clear, and need-based People management in our different units and locations. Good People management enables us to ensure that energized and competent people are committed to the company’s goals and, in turn, to its successful business.
HANDLING ISSUES AND COMPLAINTS
We handle any issues and complaints locally within our company. Our aim is to maintain a leadership culture that makes it very easy to raise concerns. The primary channel for raising issues goes from managers and experts up to the top management, as necessary. Any questions and observations are handled as appropriate in accordance with the law and our company’s guidelines. All reports are investigated, and each case is handled based on the results of the investigation.
As part of our Code of Conduct, we have issued a reporting procedure that instructs all of our employees to report any identified or suspected internal or external misuse or violation. It also describes the communication channels established for this purpose. The purpose of the instructions is to encourage our personnel to report any potential violations of ethical guidelines and laws that they encounter, so that we can investigate and handle each case.
It is also possible to make an anonymous report through the Whistleblow channel. The same channel is available to external stakeholders by email at firstname.lastname@example.org.
We also employ protocols, e.g. for bullying and harassment. There are subject-specific instructions that specify who to contact and how to deal with the situation with the appropriate sensitivity. We encourage everyone to make safety observations that they can direct to whoever they want inside the organization. After the root cause is identified, the matter is communicated to the relevant person. The entire process is documented in order to ensure it follows the protocol.
MANAGEMENT OF PRODUCT ADVANCEMENTS, PRODUCT SAFETY, AND PRODUCT LIABILITY
The management of product advancements, product safety and product liability is guided by the following principles, operating models and policies:
- Our leadership and product development are guided by our ethical guidelines, the Environmental, Safety, and Quality Policy, and testing policies. We also comply with several requirements concerning noise, studs, chemicals, testing, and tire markings, among other things.
- The basic principles of quality in our supply chain follow best practices based on the UNECE and EU regulations, efficiency, and functionality of the processes, safety and consistency of products as well as delivery reliability.
- Our research and development functions comply with the legislation that guides our industry, regulations and instructions by the authorities and the principles described in our ethical guidelines. Our activities are supervised by the authorities in various countries. Everything that we do is guided by the legal and regulatory requirements whose primary purpose is to ensure the safety and environmental aspects from production to the use of final products.
- Our activities are directed by work instructions and operating models, which apply to processes and work stages as well as individual tasks. Individual employees, supervisors, unit managers and top management are all responsible for our activities.
- Product responsibility is connected to unit-specific and personal performance targets. Unit-specific targets are tracked in real time, whereas personal targets are discussed annually during People Reviews.
- We employ a quality management system for tracking our products over their entire life cycle and ensuring that all of the tire lots that are cleared for sale comply with the applicable decrees and regulations. We systematically track product quality and our quality assurance results and swiftly take the necessary measures for ensuring safety. Our group has not had any major product recalls in more than 19 years. Furthermore, Nokian Tyres has not been involved in any legal proceedings regarding product liability.
PROCEDURE IN CASE OF A FAULT
We employ a quality management system for tracking our products over their entire life cycle and ensuring that all of the tire lots that are cleared for sale comply with the applicable decrees and regulations. We systematically track product quality and our quality assurance results and swiftly take the necessary measures for ensuring safety.
Our Group has not had any major product recalls in more than 18 years. Furthermore, Nokian Tyres has not been involved in any legal proceedings regarding product liability.
The essential instructions apply to handling customer complaints, limitation of sale, and recalling a sales batch. We have the capability to recall the products from the wholesale and retail level or, in addition, from end consumers and to immediately report all such events to the authorities in the countries where the affected tires are being sold. Our instructions also cover country-specific guidelines, such as the reporting required by the NHTSA in the United States.
All Group personnel are instructed to report any quality deviations that they become aware of. We follow the EU product safety database that records all of the recall events in the industry. The data helps us anticipate the likelihood of similar risks in our own processes.