How Nokia reward and grow their procurement partners

The company recognises outstanding supplier achievements with the yearly program of the Nokia Diamond Awards. There are 3 Award categories: Innovation, Quality and Sustainability. The objective is to reward the top passionate innovator contributing to Nokia’s strategy, to reward the best-in-class quality performer and to reward the top contributor to Nokia’s sustainability goals.

The awards are Nokia’s annual recognition program to reward supplier excellence across several categories including sustainability. Suppliers present their cases in front of expert juries and are recognised at our annual supplier event, in the presence of Nokia top leadership.

The winning supplier in the sustainability category in 2022 demonstrated commitment to CO2 emission reductions in line with Science Based Targets and had a clear roadmap in place for 2030 and a 2050 path to carbon neutrality. This involved looking at maximising energy efficiency, such as upgrading their activities to high-efficiency manufacturing equipment, improvement of clean room heat exchange equipment as well as on-site generation of renewable energy and purchasing renewable electricity.

Supply chain approach 

It is part of their wider procurement and supply chain approach and strategy that takes in risk management, sustainability and ethics.  Every year, they host the Nokia Supplier Climate webinar where they share their expectations, 2030 targets and good practices coming from different stakeholders within Nokia such as R&D, Logistics, Travel and Fleet and Real Estate. It is an example of how  environmental experts from different business units are engaging, summarising and sharing their insights and learning with their supplier base. The aim is to cultivate good practice across their supplier networks and find innovative new approaches for procurement partners to work on each year.

Working with suppliers on climate data

Nokia’s strategy includes sending out an annual climate assessment questionnaire via CDP to nearly 600 suppliers, supported by practical guidance and sessions on how to measure CO2 and how to fill out the required information. CDP (formerly known as Carbon Disclosure Project), is a global not-for-profit organisation that helps cities and companies disclose their environmental impact, with the aim of making environmental reporting and risk management a business norm for all. Following these assessment rounds, results are communicated with suppliers and tailored advice is shared as part of the suggested next steps, based on their performance. When it comes to final assembly suppliers, data collection and monitoring take place on a much more stringent monthly basis. Performance and reduction projects track and benchmark impact within Nokia’s own factories.

This works alongside their Supplier Performance Evaluation, where sustainability criteria is a vital part of the model.  It includes six components where Nokia evaluates their performance.

Supplier learning and capability building

In addition to auditing and assessing supplier performance across ESG topics, Nokia also put significant effort into supplier capability building in collaboration with a range of partners as well as directly. Their sustainable supply chain team has hundreds of follow up sessions with suppliers around their performance improvement. Nokia also conduct and deliver training webinars online and onsite including topics such as diversity and inclusion, modern slavery, responsible minerals sourcing, climate change, health and safety, and ethical business practices. In 2022, the company held in total 11 different online workshops and webinars with suppliers on subjects such as modern slavery, labour migration and ethical recruitment, inclusion and diversity, responsible minerals sourcing, climate change, circular practices and health and safety.

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Other magazines that may be of interest - Supply Chain Magazine | Sustainability Magazine

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