Good interaction with stakeholders

Our stakeholder engagement follows the principle of openness and the special requirements for public companies. We aim to address the expectations of all stakeholders, in particular concerning sustainability. We do understand, however, that different stakeholder groups may have conflicting requests, especially for corporate social responsibility.

Nokian Tyres’ stakeholders across our activities and business relationships are:

• employees and other workers
• consumers and other end-users
• B2B customers (business partners)
• suppliers and subcontractors
• governments
• shareholders
• local communities, especially in our factory locations
• media
• non-governmental organizations
• vulnerable groups

The group in the tire value chain that is considered the most vulnerable to negative human rights impacts is the natural rubber farmers and workers. Natural rubber is the livelihood of hundreds of thousands of families living in countries where the local legislation and working conditions have not been fully developed. In 2021, Nokian Tyres published its Sustainable Natural Rubber Policy to tackle issues associated with natural rubber supply chain. The company has also conducted sustainability audits in natural rubber processing plants since 2016.

Nokian Tyres conducts a material analysis every three years. In 2021, we conducted a sustainability survey, where our most important internal and external stakeholder groups defined their individual material topics and risks and opportunities in Nokian Tyres’ sustainability. The survey was conducted as an online questionnaire, comprising 26 questions on the economic, social and governance aspects of sustainability, based on global benchmarks and topics relevant to the tire industry. In addition, representatives of the most significant stakeholder groups were interviewed individually.  

The table below shows the survey results with the topics prioritized by stakeholder group:

OUR MEMBERSHIPS

We follow the law in letter and spirit in every country of operation. Our Code of Conduct provides every employee with instructions on what to do in case they see something in our operation that may conflict with the applicable legislation.

As a public company, Nokian Tyres is bound by the statutory requirements and the rules of the stock exchange on the publicity of information, which is relevant to the company’s business. In order to meet our stakeholders’ expectations, we follow the requirements of the Global Reporting Initiative framework.

We are a member of various industrial and employer organizations. Our participation depends on the current topics and our opportunities to offer our expertise. We are also a member of various communities and organizations that participate in the development of the legislation and political decision-making. Nokian Tyres is not involved in political activities, fundraising, or political contributions as per our Code of Conduct. Any new membership is evaluated with Nokian Tyres' Know Your Counterparty (KYC) process. As a company, Nokian Tyres is committed to the principles of the United Nations Global Compact and to reducing greenhouse gas emissions in alignment with the Paris Agreement, and we consider that also in our memberships and lobbying activities.

For us, the most important organizations are:

• Chemical Industry Federation of Finland 
• Rubber Manufacturers’ Association of Finland 
• ETRMA/European Tyre and Rubber Manufacturers’ Association
• ETRTO/European Tyre and Rim Technical Organization 
• National automotive and tire industry associations in various countries: 
• USTMA, The U.S. Tire Manufacturers Association
• TRAC, Tire and Rubber Association of Canada
• STRO/Scandinavian Tire and Rim Organization 
• International Chamber of Commerce 
• AEB (Association of European Businesses) 
• AmCham (American Chamber of Commerce) 
• Tampere Business Campus 
• Corporate Responsibility Network FIBS

We also support following initiatives:

• Global Compact: Nokian Tyres has signed the United Nations' Global Compact initiative and registered as a supporting member as of December 2015.
• Global Platform for Sustainable Natural Rubber (GPSNR): The tire industry together with other stakeholders formed an independent platform to lead improvements in the socio-economic and environmental performance of the natural rubber value chain. Nokian Tyres joined the platform in 2019 as a founding member.

We have promoted the demand for an ice grip marking

Nokian Tyres is involved in furthering the tire industry by participating in the work of relevant organizations and discussions in the industry. For example, we have promoted the demand for an ice grip marking in public discussion. In northern conditions, ice grip is the most important property for winter tires.

Currently, consumers in the market for new winter tires do not have any means of comparing tires in terms of ice grip, as the current markings only include a wet grip rating. Nokian Tyres has called for a mandatory ice grip marking for winter tires. The growth of online tire sales, used car imports, increase in low-cost products and emergence of new tire categories (all-season and all-weather tires) make it more difficult for consumers to know what kind of ice grip their winter tires provide.

As a result of years of work, the inclusion of the ice grip marking into the EU Tyre Label was finalized in the European Union. The renewal of the EU tire label is especially useful for winter tire consumers, as the tire label will now include information concerning grip on snow and ice. So far, markings related to properties required in demanding winter weather had been absent. The purpose of the tire label is to guide consumers toward tires that are more fuel-efficient, safer, and quieter. 

Ice grip test is currently undergoing standardization at the International Organization for Standardization (ISO) and snow grip is referring to the United Nations ECE regulations. The new label entered into force in May 2021.

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