Nokia in 2024
In this report
Business overview
2
Nokia in 2024
3
Letter from our President and CEO
8
Our customers
10
Our strategy
12
Our history
19
Business groups
21
Network Infrastructure
21
Mobile Networks
23
Cloud and Network Services
25
Nokia Technologies
27
Supply chain, sourcing and manufacturing
29
Corporate governance
31
Corporate governance statement
32
Remuneration
53
Board review
69
Business description
70
Board’s review 2024
71
Selected financial data
72
Operating and financial review
73
Sustainability Statement
85
Shares and shareholders
190
Articles of Association
194
Risk factors
196
Significant subsequent events
199
Key ratios
200
Alternative performance measures
201
Financial statements
204
Consolidated financial statements
205
Notes to the consolidated financial statements
210
Parent Company financial statements
270
Notes to the Parent Company financial statements
273
Signing of the Annual Accounts, the Review
of the Board of Directors and the
Sustainability Statement 2024
283
Auditor’s report
284
Auditor’s ESEF assurance report
288
Assurance report on the
Sustainability Statement
289
Other information
291
Introduction and use of certain terms
292
Forward-looking statements
293
Glossary
294
Investor information
297
Contents
1
Nokia in 2024
Business
overview
Nokia in 2024
3
Letter from our President and CEO
8
Our customers
10
Our strategy
12
Our history
19
Business groups
21
Network Infrastructure
21
Mobile Networks
23
Cloud and Network Services
25
Nokia Technologies
27
Supply chain, sourcing and manufacturing
29
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
2
Nokia in 2024
z
At Nokia, we create technology that helps the world act together
This is what drives us. We put the world’s people, machines and devices in sync to create a more
sustainable, productive and accessible future.
This is the fundamental role we play at the heart of the digital world – and we’re not doing it by
ourselves. We believe that the digital services and applications of the future will be built through
collaboration. When businesses, technologies and innovators act together to build on each
other’s expertise, real transformation happens.
Pioneering networks that sense, think and act
As a B2B technology innovation leader, we are driving the next evolution of networking to enable
people, machines and devices to interact in real time, like never before.
Networks that sense, think and act bring superior performance, efficiency and adaptability
– exactly the secure, future-ready networking technology customers need to capture the
opportunities of digitalization, AI and cloud.
As a B2B technology innovation leader, we are pioneering networks that sense, think and act by
leveraging our work across mobile, fixed and cloud networks. In addition, we create value with
intellectual property and long-term research, led by the award-winning Nokia Bell Labs.
Delivering value for customers
We’re focused on driving business growth through the success of our customers – enabling
them to invest in secure, future-proof technology, simplify to reduce costs, expand into new
opportunity areas – and drive sustainable efficiency. When they succeed, we do too.
We bring three distinctive strengths that enable our customers to realize the full potential
of digital.
Trusted performance across all network domains
Delivering resilient, superior performance across all critical parts of the network, built on
cutting-edge innovations and high standards of security, sustainability and ethics.
Networks as platforms for automation and monetization
Enabling our customers to innovate and unlock new value by connecting to ecosystems of
applications and services, with next-generation networks that are AI-driven, autonomous
and programmable.
Truly open network architectures
Open architectures which seamlessly integrate into any customer or partner’s ecosystem
– across any server, CPU, RAN, cloud or software stack.
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
3
Nokia in 2024
Nokia in 2024
We act
together,
to amplify
our impact
Each of our business groups brings technology leadership
and best-in-breed networking expertise. By working together
with our customers and our partners, we deliver outsized
impact for customers, for the advancement of technology,
and for the world.
Nokia in 2024
Financial highlights
Dividends paid
Share buyback program executed
EUR 714m
EUR 680m
For the year ended 31 December
EURm
2024
2023
2022
Net sales
19 220
21 138
23 761
Gross profit
8 864
8 546
10 101
Gross margin
46.1 %
40.4 %
42.5 %
Operating profit
1 999
1 661
2 299
Operating margin
10.4 %
7.9 %
9.7 %
Profit from continuing operations
1 711
649
4 202
Profit for the year
1 284
679
4 259
Free cash flow(1)
2 021
665
873
EUR
Earnings per share from continuing operations, diluted
0.31
0.11
0.74
Earnings per share, diluted
0.23
0.12
0.75
Proposed dividend per share(2)
0.14
0.13
0.12
At 31 December
EURm
2024
2023
2022
Net cash and interest-bearing financial investments(1)
4 854
4 323
4 767
(1)
Non-IFRS measure. For the definition and reconciliation of non-IFRS measures to the most directly comparable IFRS measures,
refer to the “Alternative performance measures” section.
(2)
The Board of Directors proposes to the Annual General Meeting to be authorized to decide in its discretion on the distribution of
an aggregate maximum of EUR 0.14 per share as dividend from the retained earnings and/or as assets from the reserve for
invested unrestricted equity.
Innovation highlights
R&D investment since 2000
EUR 150bn+
Patent families declared as essential to 5G standard
7 000+
Nobel Prizes awarded for ground-breaking achievements
in global innovation
10
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
4
Nokia in 2024 continued
Nokia in 2024
Global reach
Our technology solutions enable critical networks for communications service providers (CSPs) and enterprises around the world.
Countries of operation
~130
Average number of employees in 2024(1)
~78 400
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
5
Nokia in 2024 continued
Nokia in 2024
(1)
For continuing operations only.
5 381
6 362
1 134
1 373
2 042
895
2 033
North America
Europe
Greater China
India
Asia Pacific
Latin America
Middle East & Africa
Regional split of employees(1)
Regional split of net sales (EURm)(1)
Sustainability highlights for 2024
We have gathered a visual summary of our sustainability highlights and a view of our recognitions from external ratings organizations.
GHG emissions (million tons CO2eq)
Reported and targeted GHG emissions
Scope 3 upstream (cat 1, 2, 4, 6), reported
Nokia scope 1&2, reported
Scope 3 downstream (cat 11), reported
Targets
2019
2020
2021
2022
2023
2024
2030
2040
0
10
20
30
40
50
See the full chart details in the “Environmental Data”
section of the Sustainability Statement.
Share of suppliers achieving a satisfactory sustainability
score(1) from supplier performance evaluation(2)
%
(1)
Based on aggregated weighted share.
(2)
Based on Corporate Responsibility onsite audit programs, EcoVadis, CDP,
Conflict minerals.
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
6
Nokia in 2024 continued
Nokia in 2024
ESG Rankings
and ratings
Score
Latest result
Recognized as one of the 2025
World’s Most Ethical Companies(1)
2025 Mar
Prime, B (A+/D-)
2025 Feb(2)
Clean200™
31st out of 200
2025 Feb(2)
#44
2025 Jan(2)
11.1 (Low risk of experiencing
material financial impacts from
ESG factors)
2024 Oct
AAA (AAA/CCC)
2024 Aug
ESG Score 4.9/5.0
2024 Jun
Top 1% - Platinum
2024 May
A-(3)
2024 Feb(3)
22 out of 60 companies
2024 Jan
(1) “World’s Most Ethical Companies” and “Ethisphere” names and marks are
registered trademarks of Ethisphere LLC.
(2) Refers to 2024 result, received in January/February 2025.
(3) 2024 final score pending, expected in April 2025.
Our business groups
Nokia has four business groups with each of them aiming to become a technology and market leader in their respective sector.
Network
Infrastructure
Network Infrastructure delivers fixed
access, IP routing and optical transport
for business-critical and mission-critical
applications for CSP, enterprise and
webscale customers.
Segment net
sales (EURm)
-6%
Segment
operating margin
-300 bps
READ MORE ON PAGES 21 TO 22 →
Mobile
Networks
Mobile Networks creates products
and services covering all 3GPP mobile
technology generations. Its portfolio
includes products for radio access
networks (RAN) and microwave radio
links for transport networks, solutions
for network management, as well as
network planning, optimization,
network deployment and technical
support services.
Segment net
sales (EURm)
-21%
Segment
operating margin
-210 bps
READ MORE ON PAGES 23 TO 24 →
Cloud and
Network Services
Cloud and Network Services provides
open, secure, automated and scalable
software and solutions that accelerate
the journey of service providers and
enterprises to autonomous networks
and new value creation.
Segment net
sales (EURm)
-6%
Segment
operating margin
+30 bps
READ MORE ON PAGES 25 TO 26 →
Nokia
Technologies
Nokia Technologies is responsible for
managing Nokia’s patent portfolio and
monetizing Nokia’s intellectual property,
including patents and technologies.
Segment net
sales (EURm)
+78%
Segment
operating margin
+1 090 bps
READ MORE ON PAGES 27 TO 28 →
Business
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review
Financial
statements
Other
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7
Nokia in 2024 continued
Nokia in 2024
10 671
9 797
7 725
2022
2023
2024
3 351
3 220
3 022
2022
2023
2024
1 595
1 085
1 928
2022
2023
2024
75.7%
67.6%
78.5%
2022
2023
2024
FEDERICO GUILLÉN
President,
Network Infrastructure
TOMMI UITTO
President,
Mobile Networks
RAGHAV SAHGAL
President, Cloud and
Network Services
PATRIK HAMMARÉN
President,
Nokia Technologies
7 897
6 917
6 518
2022
2023
2024
5.3%
7.9%
8.2%
2022
2023
2024
8.8%
7.4%
5.3%
2022
2023
2024
13.5%
14.7%
11.7%
2022
2023
2024
Repositioning
for growth
his was a year of good strategic execution in a
volatile market to achieve our full-year guidance
while pursuing growth opportunities in our focus
areas of data centers, private wireless and industrial
edge and defense.
Challenging market conditions in the first half of 2024 led to
our full-year net sales declining, but we delivered a strong
finish to the year with improving net sales and excellent
profitability to achieve a full-year comparable operating
profit(1) of EUR 2.6 billion, at the mid-point of our guidance
of EUR 2.3 to 2.9 billion.
We delivered a strong cash performance throughout 2024,
ending with full-year free cash flow(1) of EUR 2.0 billion.
This means we have a strong balance sheet supporting
our business, with net cash and interest-bearing financial
investments(1) of EUR 4.9 billion at the end of the year,
even after returning EUR 1.4 billion to shareholders through
dividends and share buybacks. As a result, the Board is
proposing an increase in the dividend to EUR 0.14 per share
in respect of the financial year 2024.
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8
Letter from our President and CEO
Nokia in 2024
T
PEKKA LUNDMARK,
PRESIDENT AND CEO
“I’m proud of the work we have done in
re-establishing Nokia’s competitiveness
and technology leadership and in
positioning the company for growth.”
(1) Non-IFRS measure. For the definition and reconciliation of non-IFRS measures
to the most directly comparable IFRS measure, refer to the ”Alternative
performance measures” section.
Gaining share and expanding into new markets
Thanks to improving market trends and the determination
of the Nokia team, we ended the year with excellent deal
momentum, gaining share in many key markets and winning
entirely new communication service provider (CSP) and
enterprise customers.
For instance, our Network Infrastructure business, which is
a market leader in fixed, IP and optical networks, secured a
strategic deal with AT&T to deploy next-generation fiber
broadband in the US. Network Infrastructure also continued
its expansion in the data center market, winning significant
deals including Microsoft, CoreWeave and Nscale, as well as
announcing new go-to-market partnerships with Kyndryl
and Lenovo.
Over the course of 2024, our Mobile Networks business won
12 new CSP and 9 new enterprise customers, as well as gained
share with 10 existing CSP customers. As a result, Mobile
Networks added 18 000 base station sites, on a net basis,
to build share in a challenging market with notable highlights,
including a large-scale commercial O-RAN rollout with Deutsche
Telekom in Germany. Mobile Networks also expanded its
AirScale portfolio with new market-leading, energy-efficient
Massive MIMO radios to support mobile traffic growth and
accelerate mass 5G rollouts.
Cloud and Network Services continued to rebalance its
portfolio and strengthen its technology leadership, ending the
year with 123 5G Standalone Core customers, the highest in
the industry. By the end of 2024 we also had a market-leading
850 private wireless customers.
Nokia Technologies filed a record-breaking 3 000 patents
in 2024 and passed the milestone of 7 000 patent families
essential to 5G. Our patent-licensing business successfully
concluded its smartphone renewal cycle and made further
progress in its growth areas of automotive, consumer
electronics, Internet of Things (IoT) and multimedia.
Strategic moves to accelerate growth
Nokia continued to lead the telecom industry’s transition to AI-
RAN, Cloud RAN and cloud-native core networks, helping CSPs
cloudify, automate and monetize their networks to capitalize
on the opportunities that AI and cloud are bringing.
We believe that programmable networks, through application
programming interfaces (APIs), are central to unlocking
monetization opportunities for our customers and partners.
As well as continuing to expand the reach of our Network as
Code platform, we acquired US tech firm Rapid’s technology
and R&D unit this year. This acquisition gives us the world’s
largest API hub, used by thousands of developers globally,
and strengthens our R&D capabilities. It also meant that by
the end of 2024, we had 48 network API partners, including
Orange, Telefonica and Google.
We also undertook significant strategic moves to accelerate
progress in our new focus areas of data centers, private
wireless and industrial edge, and defense.
For instance, the sale of the Submarine Networks business and
the acquisition of optical networking supplier Infinera have
reshaped our Network Infrastructure business around three
leading pillars, have strengthened our optical position,
particularly in the US, and will help to accelerate our progress
in the data center market. To support that ambition, at the
fourth quarter results, we announced our intention to invest up
to an additional EUR 100 million in annual operating expenses
in data center IP networking, with a view to driving incremental
net sales of EUR 1 billion by 2028.
Mobile Networks’ acquisition of tactical communications
specialist Fenix Group broadens our defense portfolio, and the
launch of Nokia 5G Banshee Flex Radio at the end of the year
is a sign of things to come as we start to apply our expertise
in fast, secure and reliable 5G connectivity to a range of
defense scenarios.
Looking ahead
Given the market volatility in 2024, our performance
demonstrated Nokia’s responsiveness and capacity to execute
in all market conditions. I am grateful to the Nokia team for
their commitment, hard work and drive in delivering on our
guidance and creating a strong foundation for growth this year.
This will be my last annual report as President and CEO of
Nokia. In February 2025 we announced a leadership transition,
with Justin Hotard becoming the next President and CEO
of Nokia on 1 April. I had earlier indicated to the Board
that I wanted to move on from executive roles when the
repositioning of the business was at a more advanced stage,
and when the right successor had been identified. With both
of those conditions met, I decided it is the right time to
step down.
I’m proud of the work we have done in re-establishing Nokia’s
competitiveness and technology leadership and in positioning
the company for growth.
It has been a privilege to lead Nokia and to have worked with
one of the best teams in the industry.
PEKKA LUNDMARK
PRESIDENT AND CEO
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Nokia in 2024
Our customers
We serve three customer segments: communications
service providers, enterprises and licensees.
Networks play an increasingly important role in the economy
and in society. As a result, we serve a growing number of
customers who provide critical services to end-users. We
distinguish two primary customer segments that we serve with
our hardware, software and services portfolio: communications
services providers and enterprises, including enterprise
verticals and webscalers. In addition, we license our intellectual
property to industries that benefit from our fundamental
innovations, primarily in the mobile devices, automotive,
consumer electronics and IoT industries.
Our analysis of the evolution of these segments is set out below.
1
Communications service providers (CSPs)
The CSPs estimated total addressable market (TAM)
declined 5% to EUR 86 billion from 2023 to 2024.
A communications service provider offers telecommunications
services such as voice and/or data services through fixed
and/or mobile connectivity to consumers, enterprises,
governments and other communications service providers.
Nokia maintains a consolidated view of the Nokia total
addressable market based on multiple external analyst reports,
customer and key competitor reported and announced insights
as well as Nokia internal insights. We estimate that in 2024, the
CSPs estimated total addressable market (excluding Russia and
Belarus) for Nokia was EUR 86 billion, having declined by 5%,
excluding the impact of changes in foreign currency exchange
rates from 2023 to 2024. This reduced spending was driven by
the macro-environment, high interest rates and inventory
ramp-down, although market dynamics started to improve in
the second half of 2024.
We expect it to grow moderately, at a 2% compound annual
growth rate (CAGR) between 2024 and 2029 excluding the
impact of changes in foreign currency exchange rates.
We expect that fixed wireless access, fiber, IP routing and
optical networks will grow faster than the overall CSP market,
driven by the continuous demand for higher speed access
technologies at homes and workplaces. We expect RAN
investments to remain in line with the overall CSP market,
as 5G adoption and expansion continues around the world.
The 5G cycle will also yield growth in software, namely in
5G Core and in all software segments supporting 5G operability
and monetization.
CSPs have kept their capital expenditure intensity flat, but
increased their earnings through automation, digitalization,
shifts in channel mix, outsourcing and asset sales. We expect
them to remain focused on the monetization of their
connectivity strengths and on cost optimization. They are
also considering divesting from passive infrastructure and
transitioning towards network sharing models. In areas where
the network is built for coverage, this might reduce demand
for network vendor equipment. We have also seen the first
examples of CSPs relying on webscalers to lead the transition
to cloud-based operational and business models. When
combined with open RAN standards that aim at splitting a base
transceiver station into subcomponents with open interfaces,
this may allow for new entrants into the market and increase
competition. Conversely, it should also serve to accelerate
innovation and create opportunities for market share gains
for those investing in the technology, including for Nokia.
Geopolitics and environmental criteria increasingly influence
investment and vendor decisions. Security and sovereignty
have become important factors across the vendor landscape.
Government-funded broadband initiatives also provide
additional funding for investments, for example in rural areas.
Sustainability considerations such as green energy use, energy
consumption reduction plans and circular economy approaches
also shift the criteria for vendor selection.
2
Enterprises
Enterprise estimated TAM grew by 4% to
EUR 25 billion from 2023 to 2024.
Enterprise TAM includes enterprise verticals and webscaler
markets. In 2024, the estimated enterprise TAM (excluding
Russia and Belarus) was EUR 25 billion, having grown by 4%
from 2023 to 2024, excluding the impact of changes in foreign
currency exchange rates. We forecast this market to grow
strongly, at 8% CAGR until 2029, excluding the impact of
changes in foreign currency exchange rates, with the private
wireless market reaching 22% CAGR.
Enterprise verticals
An enterprise vertical represents a grouping of companies
by an industry that offers products and services that meet
specific needs. We primarily focus on transportation and
logistics, energy, manufacturing and public sector verticals.
This reflects our assessment that these sectors are seeing the
most significant digitalization over the coming years, as they
automate many aspects of their operations. We project that
growth will mainly be driven by private wireless and wireline
networks in manufacturing, as well as in the public sector and
in energy. We estimate that IP routing and optical networks
will also continue to grow moderately in these segments.
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Our customers
Nokia in 2024
Webscalers
Webscaler refers to companies that provide cloud-based,
scalable solutions and services. Alphabet (Google Cloud
Platform), Amazon (Amazon Web Services) and Microsoft
(Azure) are the largest cloud players – also referred to as
hyperscalers – operating on a global scale. Our TAM for
webscalers consists mainly of optical networks and IP routing.
Within optical networks, we expect that data center
interconnect (DCI) will be a strong growth driver, while the
increasing webscaler data traffic requires adoption of higher
bit rate technologies also in IP routing.
The largest global webscalers are also assuming an increasingly
important role within the telecommunications domain. They
target edge computing as the next growth engine for industrial
automation workloads and low-latency applications. They also
partner with CSPs to co-locate edge stacks on-premises and at
metro sites. Additionally, they aim to run telecommunications
network workloads on their cloud infrastructure. As such,
webscalers are customers and partners, as well as potential
competitors in some areas.
3
Licensees
Licensees refers to companies that have agreed licenses to
use Nokia’s intellectual property. This includes the licensing
of Nokia’s patent portfolio, the licensing of technologies for
integration into consumer devices and the licensing of the
Nokia brand. The majority of Nokia Technologies’ revenues
comes from patent licensing where we have agreements with
most major smartphone vendors as well as licensing
programs for consumer electronics, video services,
automotive and the wider IoT domain. In total, we have more
than 200 licensees across all our programs, including
companies like Apple, Samsung and Lenovo.
1
2
3
CSPs
Enterprise
Licensees
Focus on connectivity
strengths
and using cost optimization
via automation and asset
carve outs to fund both
fiber and 5G investments.
Favoring cloud
strengths
in vendor and partner
ecosystem.
Network monetization
targeting enterprise and
edge use cases.
Enterprise verticals
Digitalization and automation
of operations in industrial segments.
Transition to software-centric
operations and adoption of industrial operational
technology (OT) edge and on-premise clouds.
Energy and manufacturing
as early adopters of private wireless and
automation solutions.
Federal, state government and cities
network modernization acceleration.
Patent portfolio
with long lifetime
The vast majority of Nokia’s
patents still in force in ten
years’ time.
New inventions
every year
In 2024, we filed patent
applications on a record
number of more than 3 000
new inventions in areas
such as 5G and upcoming
6G networks, Wi-Fi
connectivity, next-
generation video coding,
and more.
Annual number of
patent filings expected
to grow
due to continued
investments in R&D and
standardization.
Entire industries
powered by our
fundamental cellular
and multimedia
inventions
providing us with the
opportunity to expand our
licensing coverage; we are
making good progress in
our growth areas of
consumer electronics,
automotive and IoT.
Webscalers
Edge computing
as a growth engine – industrial automation
workloads across on-premise, edge, public cloud.
Partnering with CSPs
to co-locate edge stacks and building an
ecosystem for low-latency apps.
Targeting telco and network
workloads to run on their cloud infrastructure.
Collaborating with CSPs
in the transformation of network operations.
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Our customers continued
Nokia in 2024
Our strategy
Networks are the key enabler for the digitalization of
industries and the realization of the broader potential
of the metaverse.
In 2021, Nokia set out its strategy to deliver sustainable,
profitable growth by becoming a B2B technology innovation
leader, accompanied by a new purpose and operating model.
In 2023, Nokia made an evolution in this strategy and how we
deliver against it with the introduction of six strategic pillars.
These pillars are the key objectives that will define Nokia’s
success in the future and enable it to achieve its long-term
ambitions. During 2024, Nokia continued to execute against
these strategic pillars, more details of which will be shared in
the following Business Group sections.
The six pillars are:
1 Grow CSP business
faster than market
2 Expand the share
of enterprise in
our business
3 Actively manage
our portfolio
4 Secure business
longevity in Nokia
Technologies
5 Build new
business models
6 Develop ESG into
a competitive
advantage
CSPs will continue to be our
biggest customer segment.
We will leverage our strong
technological position,
investment in technology
leadership and emerging
opportunities to grow our
share in key markets, with
geopolitical considerations
supporting this ambition.
Enterprise verticals and
webscalers are deploying
campus networks, wide area
private wireless networks,
enterprise physical networks
and data centers at an
accelerated rate to digitalize
their operations. Being a
technology leader in all these
domains, we pursue these
opportunities to grow our
enterprise business.
Maintaining our portfolio
segments at number one
or number two position,
through several routes
including active portfolio
management, is critical for a
profitable and sustainable
business. There may be
cases where a leadership
position is not possible, and
for these cases, we will
consider alternatives.
We are investing to
ensure the sustained
competitiveness of our
patent portfolio. We will
continue to pursue
opportunities from sectors
outside mobile devices, such
as automotive, consumer
electronics, IoT and video
services.
To broaden our customer
base and change our margin
profile, we see potential in
new platform business
models within the broader
ecosystem. We engage with
service providers, webscalers,
industrial giants and emerging
players, like app developers
and start-ups, to drive the
creation of new products,
services, and solutions, and
to explore new business
models including Cloud
RAN, Network as Code and
as-a-Service.
ESG is increasingly important
for customers, investors,
regulators, partners and
Nokia employees. There is
space in our industry to
become the ‘trusted
provider’ and Nokia aims to
claim this position. Our ESG
strategy lays out how we will
do this and our specific areas
of focus.
The six pillars are underpinned by four enablers:
1 Develop future-fit-talent
2 Invest in long-term research
3 Digitalize our own operations
4 Refresh our brand
We have launched and are executing a new
people strategy focused on growth, skills and
development. We build the right future skills
for our employees in the technical domains
identified in our technology vision and
strategy, and the commercial skills to support
our expansion into new domains.
Sustained technology leadership is a key driver
of our success: it requires us to anticipate,
shape and invest in the next technology waves
and breakthroughs. We continue to invest in
long-term research to ensure a leadership
position in line with our Technology Vision
2030. We are also deeply engaged in leading
and influencing standards and developing
standard essential patents.
We are increasing the digitalization of our own
operations to lead by example with a set of
ambitious, company-wide strategic initiatives
to increase the company’s performance and
competitiveness, focused on efficiency,
productivity and agility in internal operations,
customer experience and R&D.
To ensure Nokia is recognized as a B2B
technology innovation leader, we refreshed
our brand in 2023. Our new visual identity is
emblematic of an energized, dynamic and
modern Nokia.
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Our strategy
Nokia in 2024
Strong progress on strategic execution
Actively managing our portfolio
Acquisitions
Through 2024, Nokia made a number of strategic acquisitions
which will strengthen our position in markets where we see
significant future growth potential.
Nokia announced its intention to acquire Infinera, a global
supplier of innovative open optical networking solutions and
advanced optical semiconductors. Nokia and Infinera see a
significant opportunity in merging to improve scale and
profitability, enabling the combined business to accelerate
the development of new products and solutions to benefit
customers. The transaction aligns strongly with Nokia’s
strategy, as it is expected to strengthen our technology
leadership in optical and increase exposure to webscale
customers, the fastest growing segment of the market.
This will create a highly scaled and truly global optical business
with increased in-house technology capabilities and vertical
integration. This will also strengthen Nokia’s optical position,
specifically in North America. The combination with Infinera
is projected to accelerate Nokia’s journey to a double-digit
operating margin in its Optical Networks business. The
acquisition of Infinera was completed in February 2025.
Nokia completed the acquisition of Fenix Group in 2024 in order
to strengthen its position in the defense industry. This acquisition
will add Fenix’s innovative broadband tactical communications
products into our portfolio. The acquisition closed in May 2024
and we have moved quickly to accelerate product roadmaps,
even now launching a 5G tactical radio solution.
Nokia also acquired Rapid’s technology and R&D unit. This
acquisition gives Nokia the world’s largest API hub used by
thousands of developers globally along with strengthening
our R&D capabilities. This will bolster our R&D capacity in
Network as Code. Taken together with our autonomous networks
application suite, we are enabling operators to fully automate
and monetize their network.
Divestments
In 2024, Nokia sold its wholly owned subsidiary Alcatel
Submarine Networks (ASN), a global submarine communication
networks leader, to the French state. Nokia will retain a 20%
shareholding with board representation to ensure a smooth
transition until targeted exit, at which point it is planned for
the French state to acquire Nokia’s remaining interest. The
transaction demonstrates Nokia’s active management of its
business portfolio and focus on key strategic assets.
Both the acquisition of Infinera and the sale of the
Submarine Networks business allow Nokia to focus its Network
Infrastructure portfolio on growth opportunities in its core
markets and further improve profitability of the Network
Infrastructure business group. For more details on the sale
of the Submarine Networks business and the acquisition of
Infinera, please refer to Note 2.6. Discontinued operations
and Note 6.5. Subsequent events in our consolidated
financial statements.
Providing business groups with greater autonomy
In 2021, Nokia significantly streamlined its operating model,
moving from a matrix organization and creating four P&L-
responsible business groups structured around unique
customer offerings. In 2024, Nokia accelerated its strategy
execution through providing its four business groups with
increased operational autonomy and agility along with
embedding sales teams directly into the business rather than
the central sales organization the company has utilized until
now. This enables the business groups to better address
opportunities in their distinctive markets with our existing and
new customers. They will be empowered to diversify faster,
build new ecosystem partnerships, implement new business
models and invest for technology leadership. Sales teams
will collaborate across Nokia to ensure customers continue
to benefit from the breadth of all Nokia offers.
Nokia’s lean corporate center will act as a strategic architect,
providing oversight in key areas, including target setting and
performance management and portfolio development along
with governance and compliance. The company will continue
its commitment to long-term research through Nokia Bell Labs.
Accompanying the move towards more autonomous business
groups and to provide investors with greater transparency in
assessing their financial performance, Nokia began reporting
regional net sales for its business groups.
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Nokia in 2024
Our path to
continued
technology
leadership
As one of the industry’s leading investors in
communication technology research and development
(R&D), we drive innovation across a comprehensive
portfolio of network equipment, software,
services and licensing opportunities.
Nokia’s world-leading research and
development
We have a global network of R&D centers, each with specialties
and ecosystems built around both competencies and
technologies. Most of our near- to mid-term R&D is conducted
within the business groups’ structures and is further elaborated
in the business group-specific sections of this report.
Laying the path for Nokia’s future
technology innovation and identifying the
most promising areas for new value creation
Beyond the R&D of our business groups, Nokia’s dedicated
Strategy and Technology (S&T) organization is focused on
longer-term technology cycles. S&T is responsible for
formulating Nokia’s corporate strategy and establishing a
technology and architecture vision across the company. It also
oversees the implementation of this vision and strategy in
partnership with Nokia’s business groups.
S&T drives company-wide internal technology alignment and,
through the transfer of technologies to the business groups,
contributes to the evolution of Nokia’s portfolio to enable
continued technology leadership.
Nokia Bell Labs
As Nokia’s industrial research lab, Nokia Bell Labs solves
human needs through the power of human intellect. It
celebrates its centennial in 2025 by highlighting its past,
present and future technology innovations and the impact
these have had on society.
Over the past 100 years, Nokia Bell Labs has been bringing
together the brightest minds in mathematics, physics,
computing and engineering to work on the world’s biggest
scientific challenges. In 2024, we celebrated alumnus Louis
Brus’ Nobel Prize in Chemistry for his research on quantum
dots, our 10th Nobel Prize for work completed at Bell Labs.
Nokia Bell Labs’ primary research areas are network
fundamentals, automation, semiconductors and devices, and AI
and software systems. As an industrial research lab, we innovate
with purpose, pursuing responsible, sustainable technologies
that will have a demonstrable impact on society.
Nokia Bell Labs started its 6G research in 2018. After several
years of exploration research with some world-first proof-of-
concepts, we have now transitioned from vision to action,
with a focus on technology leadership and future 6G product
differentiation. We are guided by our vision that 6G will fuse
the physical, digital and human worlds, opening the door to
extrasensory experiences. Intelligent knowledge systems will
be combined with robust computation capabilities, merging
network, application and processor roles. Nokia is also leading
Hexa-X-II, the second phase of the European Commission’s
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Our strategy continued
Nokia in 2024
flagship 6G initiative for research into the next generation
of wireless networks. In addition, together with partners like
Bosch, we are progressing the concept of 6G integrated
communication and sensing (ICAS) in evaluating different
use cases with our prototype system.
We launched UNEXT, a new research initiative for a future
Network Software System that creates a unified networking
experience for autonomous service creation, leveraging
distributed computing and new business environments.
This new UNEXT system includes knowledge and security
services that are natively designed into it. In 2024, we realized
a first prototype showing the foundational capabilities of
UNEXT-Operator or UNOP, a key building block of the system.
Just as Bell Labs’ invention of UNIX transformed computing,
our UNEXT research initiative is poised to transform
networking, by breaking down barriers that have traditionally
prevented network elements from interoperating.
In the area of optical networks, we reached a new world record
of 300+ GBaud/s transmission rate on a single wavelength
carrier. We achieved a 50 000x acceleration of fiber sensing,
which opens new application opportunities for network
infrastructure monitoring and geophysical research. We also
evaluated our 100G Flexible rate Passive Optical Network (PON)
in technical trials with several service providers.
Nokia Bell Labs believes that the best research is done in an
inclusive, collaborative manner, taking diverse points of view
into account. We have worked with NTT and DOCOMO and SKT
to explore a technology that implements a proof-of-concept
air interface. This joint AI-native proof-of-concept was awarded
the Future Award category in World Communication Awards
2024, and the Best Industrial AI Use Case of the Year at the
AI Gala.
In 2024, we continued our research on quantum, showcasing
how these technologies encompass far more than just
quantum computing. Quantum networking and quantum
security are all key areas of established research, and they are
all areas in which Nokia has proved considerable expertise.
We have also put our mark on Industry 5.0 with our unique
contributions to advancements in AI, cloud and connectivity.
The goal is to increase the digitalization of industries, facilitate
greater productivity, efficiency and safety and enable simpler
and more intuitive human-machine interactions.
Nokia Bell Labs is also at the forefront of non-traditional
network research with a focus on AI and machine learning that
is needed for future advanced communication capabilities. We
believe it is important to develop AI in an ethical, responsible
and sustainable way, and this led us to create a cross-
organizational AI Center of Excellence.
Nokia Bell Labs has had recent success in collaborating with
government agencies and businesses on distinct commercial
contracts. This includes additional funded agreements with the
US government for the future of space communication and
lunar communication architecture studies. Nokia Bell Labs was
chosen by DARPA for the LunA-10 Capability Study to design
an integrated multi-service architecture to support a thriving
economy on the moon in the next decade and beyond.
Nokia Bell Labs is regarded as a leading industry and thought
leader on lunar surface communication networks, which NASA
recognized with a FY2023 NASA Langley Research Center Large
Business Prime Contractor of the Year Award. Nokia Bell Labs
successfully completed a System Engineering and Integration
(SE&I) study for NASA to investigate and outline how cellular
communication technologies could be used to support the
Artemis missions and provide a high-level system architecture
and design to meet the requirements for the Artemis V mission.
We announced a partnership with Axiom Space to deliver a
spacesuit-integrated cellular communications system that
will allow Artemis III astronauts to communicate via voice and
video with NASA Mission Control as well as send telemetry
information back to Earth, while they explore the lunar surface.
We continued our testing and validation work of the Nokia
Lunar Surface Communication System (LSCS) with Intuitive
Machines and Lunar Outpost engineers in preparation to
deliver and deploy the first cellular network on the lunar
surface as part of the IM-2 mission, scheduled for 2025.
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Our strategy continued
Nokia in 2024
Nokia Bell Labs signed a multi-year research agreement with
Vale, a Brazil-based global mining company, to implement a
cognitive, AI-based mining program to boost productivity and
worker safety. We also collaborated with Qualcomm on AI
interoperability technology that boosts wireless capacity and
performance, and with Vodafone on the world’s first trial of L4S
technology over an end-to-end PON network.
Nokia Bell Labs continues to explore new concepts that could
lead to growth in both neighboring and nascent markets.
In 2024, we initiated our Entrepreneurs in Residence (EIR)
program in which we partner with entrepreneurs to rapidly
translate groundbreaking research into commercially
successful ventures.
Nokia Standards
Across the larger S&T organization, we continue our heritage of
pioneering significant innovations in the essential technologies
driving communication networks and systems. Many of the
fundamental technologies that are used in 5G standards were
invented at Nokia, and now we are focused on technology
leadership beyond 5G, playing a key role in setting the 3GPP
standards. We completed the standardization work for the first
release of the 5G-Advanced era, known as 3GPP Release 18, in
June 2024, and are currently working on the upcoming Release
19. In December 2024, we kickstarted the work on completing
5G-Advanced with 3GPP Release 20. This will be the final
release of 5G and will also prepare for 6G.
Spectrum availability is a fundamental enabler of wireless
communications. So, after a successful WRC-23 event,
Nokia continued to engage with regulators and partners
around the globe to make harmonized mid-band spectrum
available for 6G. With Nokia at the forefront of 6G research,
our 2024 Brooklyn 6G Summit, organized jointly with New York
University, focused on the ongoing 6G shift from the research
to standardization stage.
We were also selected to lead a new European project on
6G sustainability. In coordinating the SUSTAIN-6G lighthouse
project, Nokia will lead the consortium’s efforts of 24 partners
to find solutions for these specific areas of sustainable
development: energy smart grids, e-health and telemedicine
and agriculture. We are also engaged in sustainability
standardization activities at the ITU-T, ETSI, ISO and
CEN-CENELEC. In 2024, we led the endeavor to incorporate
circular processes into the ITU-T L.1410 LCA standard.
Nokia Ventures
We pursue future growth and value generation through
investment in the in-house incubation and commercialization
of venture projects, selected spinouts and licensing of
technologies, and through investment with our NGP Capital
partner. Our internal incubation program is leveraging
breakthrough technologies from Nokia Bell Labs to define
minimal viable products, test new business models, and then
scale the business development and sales. Some examples
include the following:
Nokia’s Autonomous Industrial Monitoring Service (AIMS) has
transformed the traditional inventory counting process, with
its autonomous drones flying in warehouses. Nokia AIMS also
won the Industrial Innovation category at the Supply Chain
Excellence Awards USA.
Nokia’s Real-time eXtended Reality Multimedia (RXRM) is a
breakthrough solution in real-time 360° video and 3D spatial
audio capture. The RXRM solution is an application that brings
added value to network investment for enterprises. With a
growing customer base, RXRM is enhancing industrial
productivity, safety and sustainability, and creating immersive
experiences in the entertainment sector. A newly launched, and
world’s first, ruggedized 5G 360 camera that is designed for
harsh conditions, completes the full turnkey solution for RXRM
customers. RXRM also won the iF Design Award in 2024 for its
UX Design.
We also demonstrated a groundbreaking digital twin solution
that can create a Cognitive Digital Mine (CDM). This solution is
an industrial real-time AI platform for faster, predictive and
better decisions to boost mine resource planning, asset usage,
scheduling, and operational safety. It won the 2024 Fierce
Network Innovation Award in the IoT category.
The Sustainable Energy Management (SEM) venture offered
its first general availability product release in 2024. The
offering consists of digital tools to plan flexibility, local energy
generation and storage to optimize energy economics.
An example of an external spinout, Cambridge Future Tech
entered a relationship with Nokia Bell Labs and Nokia Ventures
& Partnerships to establish OmniBuds LTD for the
commercialization of the Nokia Bell Labs OmniBuds platform.
OmniBuds is the world’s first ear-worn AI/ML platform to track
your health in real time.
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Nokia in 2024
Our Technology Vision and
Technology Strategy 2030
The Nokia Technology Vision describes how Nokia sees
the technology trends shaping the world of the future.
The Nokia Technology Vision represents our prediction
of the state of technology beyond ten years from the
unique standpoint we have in the industry and the
extraordinary technical expertise Nokia has through its
leading research and wide product portfolio. Building on
our Technology Vision, Nokia’s Technology Strategy
outlines the insights, priorities and actions necessary
for businesses to remain proactive in response to
accelerating technological advancements and the digital
economy interplay and how, together with our customers
and the industry, we must evolve networks to meet the
challenges of tomorrow and beyond.
This year’s title for the Nokia Technology Vision is “Digital
acceleration toward the quantum era.” It describes the
increasing intersection of the digital, physical and human
worlds to a smart world ahead that feels more human. The
primary engine of innovation over the next decade will be AI
that allows the digital world to interact with the physical and
the human worlds. Evolving device technologies enhanced with
enablers, such as spatial computing and artificial intelligence
powered digital twins, provide solutions that are of a high-
quality personalized experience. This trajectory requires the
underlying technologies, such as hardware and software, to
further develop to fulfill the requirements of the new world.
The technologies are influenced through the different
macrotrends including geopolitics and climate change,
which call increasingly for trustworthy technology suppliers.
To enable this future, the networks need to continue to
develop. The development of both evolutionary and disruptive
network technologies, as well as changes to how networks are
deployed and used, are needed for the networks to fulfill the
requirements of the future.
Where the Nokia Technology Vision describes the trends of
the future, the Nokia Technology Strategy defines how the
company will develop and implement technologies to transform
networks and drive business growth. It aligns product
innovation with future market trends, ensuring scalable, reliable
networks that serve as a foundation for the hyper-digital era
and growth opportunities for our customers and the industry in
general. By 2030 and beyond, the hyper-digital world will drive
transformative changes in society.
Our 2024 edition of the Technology Strategy focuses on
four pillars – network cloud continuum, ubiquitous advanced
networking, AI and next-generation devices – as the
foundational elements required to create highly agile, scalable
and efficient digital ecosystems that telecommunications and
enterprises need to evolve and thrive in a hyper-digital world.
This evolution will enhance customer value, create new
business models and deliver innovative services. Future
networks must be programmable, exposable and easily
monetized to support the next-generation digital experiences
of the hyper-digital world.
Our Technology Strategy is built upon our commitment to
making Nokia a technology leader in the industry. In line with
our corporate strategy, defining our Technology Strategy
allows us to be fully prepared for the next five to seven years.
It focuses on our core business of providing critical
technologies to enhance the evolution of networks for our
customers and support them in meeting their advancing needs.
The Strategy and Technology team have worked closely with
Nokia’s business groups to develop the Technology Strategy,
which was finalized after multiple rounds of review and
alignment with Nokia global technology and business leaders.
The hyper-digital world beyond 2030
Beyond 2030, the hyper-digital world will be characterized by
a deep integration of the digital, physical and human worlds,
resulting in transformative changes across digital society.
The future represents a profound blend of digital intelligence
and human experience. This sets the stage for our Technology
Strategy, which has been developed to position us at the
center of this transformation and drive value creation for Nokia
and our customers. Critical to realizing future use cases will be
the advancement of networks, which will play a pivotal role in
connecting and orchestrating the various technologies involved.
A strategic shift for the telecommunications
industry
To thrive in this evolving landscape, telecommunication
services must transform from being mere connectivity
providers to becoming enablers of digital ecosystems, offering
a broader range of services beyond traditional offerings.
A platform-based approach is essential, integrating cloud
services, edge computing, IoT and AI-driven value-added services.
This strategy leverages network infrastructure more effectively,
enabling differentiated services that enhance customer
retention, growth and new revenue opportunities.
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Our strategy continued
Nokia in 2024
By unifying and integrating diverse resources, communications
service providers can create dynamic platforms that drive
multi-sided value, moving beyond linear business models.
These platforms allow various stakeholders – developers,
enterprises, consumers and partners – to interact, transact and
innovate together. This model fosters efficiency and innovation
and opens new monetization avenues, such as on-demand
services, data-driven insights and industry-specific applications.
Emerging technologies and digital platforms
To enable the telecommunications industry to transition from
offering connectivity-only services to providing rich digital
platform services that integrate new capabilities and move up
the value chain, we prioritize investment in these four pillars.
These capabilities can be offered to Nokia customers in several
different business models, for instance, as-a-service, as a
white-label solution or simply technology products and solutions.
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Our strategy continued
Nokia in 2024
Over 150 years of innovation
Nokia has been adapting to the needs of an
ever-changing world for over 155 years.
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Our history
Nokia in 2024
Key
= Innovation
1982
Introduced both the first fully digital
local telephone exchange in Europe
and the world’s first NMT car phone
1991
Enabled the first GSM call using a
Nokia phone over the Nokia-built
network of Finnish communications
service provider Radiolinja
1998
Became technology leader and
the world’s largest manufacturer
of mobile phones
2001
Invented MIMO (Multiple-Input and
Multiple-Output), a key element of
a large number of modern wireless
systems that allows for greater
throughput without increasing
bandwidth requirements*
2006
Developed Softrouter, a routing
architecture permitting the
development of a programmable,
open network infrastructure to
allow easier deployment of new
services that make use of exposed
network capabilities*
2007
Entered a joint venture with Siemens,
combining mobile and fixed-line phone
network equipment businesses and
creating Nokia Siemens Networks (NSN)
2011
Entered a strategic partnership with
Microsoft to address increasing
competition from iOS and Android
operating systems
Acquired the wireless network
equipment division of Motorola
1947
Developed the transistor, a tiny
device that revolutionized the
entire electronics industry*
1954
Created the solar cell, enabling
the conversion of the sun’s
energy into electricity*
1958
Developed the laser, creating the
foundation for fiber optics*
1960s
Nokia became a conglomerate
comprising rubber, cable, forestry,
electronics and power-generation
businesses
1962
Launched the first
communications satellite, Telstar
1, into orbit, enabling the first ever
broadcast of live television
between the US and Europe*
1969
Developed UNIX, the software system
that made the large-scale networking
of diverse computing systems and the
internet practical*
1865
Founded as a
single paper mill
operation
1926
Brought sound
to motion
pictures*
1865
1960
2006
*Bell Telephone Laboratories (1925-1984). Following its acquisition by Nokia in 2016, it
was renamed Nokia Bell Labs.
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Our history continued
Nokia in 2024
2017
Developed Probabilistic Constellation
Shaping, an innovative technology to
get the most out of each fiber,
irrespective of its length and
capabilities
Additional acquisitions enhancing
our technology leadership:
Deepfield, the US-based leader in
real-time analytics for IP network
performance management and
security, and Comptel, a Finland-
based telecommunications
software company
2018
Acquired Unium, a Seattle-based
software company that specializes in
solving complex wireless networking
problems for use in mission-critical
and residential Wi-Fi applications
2019
Opened the world’s first live end-to-
end 5G lab, the Future X Lab in
Murray Hill, New Jersey, US
2020
Selected by NASA to build and deploy
the first end-to-end LTE solution on the
lunar surface
Enabled commercial deployment of the
world’s first 5G liquid cooling solution
Set the 5G speed world record
Acquired Elenion, a US-based company
focusing on silicon photonics
technology
2021
Developed the Resh programming
language to take control of and manage
a fleet of robots
2022
Showcased the first 100Gb/s fiber
broadband technology in the US
Launched the Advanced Security Testing
and Research (ASTaR) lab in Dallas – the
first end-to-end 5G testing lab in the US
focused solely on cybersecurity
Introduced the 6 pillars of Responsible AI
2023
Renewed the Nokia brand to
establish a clear position for Nokia
as a B2B technology innovation
leader
Achieved two key 6G
technological milestones: the
implementation of AI and machine
learning into the radio air
interface, and proof-of-concept of
6G joint communication and
sensing capability
Continued to actively manage its
business portfolio, e.g., through
the agreed sale of its Device
Management and Service
Management Platform businesses,
and the divestment of its VitalQIP
products. Announced the
acquisition of Fenix Group
Added our 10th Nobel Prize for
work completed at Bell Labs, with
the Nobel Prize in Chemistry
awarded to our alumnus Louis Brus
World-record 2.4 Tb/s optical
transmission over a single wavelength
2013
Purchased Siemens’ stake in NSN
2014
Sold the Devices and Services
business to Microsoft
Developed XG-FAST technology,
enabling service providers to generate
fiber-like speeds of more than 10Gbps
over short distances using existing
copper infrastructure
2016
Acquired Alcatel-Lucent, including
Bell Labs, creating an innovation
leader in next-generation technology
and services
2024
Divested our Submarine
Networks business and
announced our plans to
acquire Infinera, a leader in
optical networks
Made the world’s first
immersive voice and audio call
over a cellular network using a
codec which enables 3D spatial
sound in real-time
Partnered with Axiom Space to
enable high-speed cellular
network capabilities in next-
generation lunar spacesuits
2013
2020
2024
Network
Infrastructure
Network Infrastructure delivers fixed access,
IP routing and optical transport for business-critical
and mission-critical applications for CSP, enterprise
and webscale customers.
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Business groups
Nokia in 2024
“Network Infrastructure is supporting the
world’s growing demand for connectivity,
capacity, security and efficiency. And – through
innovations in technology and network
management – we are helping our customers
navigate this landscape successfully.”
FEDERICO GUILLÉN
PRESIDENT, NETWORK INFRASTRUCTURE
8 500km
distance between London and Chicago
covered by the Colt, Windstream and Nokia
ultra-fast 800GbE trial
2024 in brief
In 2024, Network Infrastructure’s net sales declined by 6% from
2023. We faced challenges across our business units in the first
half of the year, with a strong return to year-on-year growth in the
fourth quarter. Against this backdrop, focused cost management
contributed to a segment operating margin of 11.7%.
■
Divested our Submarine Networks business, and announced our
plans to acquire Infinera – a leader in optical networks with a
complementary geographical and customer segment fit.
■
Strengthened our role as a key supplier for Microsoft Azure’s
cloud infrastructure with a new five-year deal in support of the
customer’s ongoing footprint expansion to manage surging
demand for general compute.
■
Signed a strategic deal with AT&T to accelerate future-ready
fiber broadband growth.
■
Launched Event-Driven Automation platform: the most modern
data center platform in the industry, built for the AI era.
■
Introduced a toolkit to boost the Corteca developer ecosystem.
■
Launched a new portfolio of application-optimized optical
network solutions.
40%
potential reduction in operational effort
enabled by the new Event-Driven
Automation platform
Market overview
Network Infrastructure faced headwinds in the first part of
the year, but returned strongly to growth in all three business
units (Submarine Networks is now reported as a discontinued
operation) in the fourth quarter of 2024. Increasing sales were
partly driven by new technologies, including AI. Along with
cyclical recovery in the network infrastructure market, this
confirms our belief in a recovery in investment from customers
in all business units for 2025.
We have made a strategic decision to increase our focus
on data center networking solutions and on the continued
expansion of broadband, and to reshape our portfolio with
the divestment of our Submarine Networks business and the
acquisition of Infinera, which was closed in February 2025.
Business strategy overview and organization
Network Infrastructure’s strategy is to support its customers in
deriving value from their network investments; enable them to
achieve lower total cost of ownership; or assist them in both.
We aim to be the most trusted partner in our market.
Our business units are: Fixed Networks, IP Networks and Optical
Networks. In June, we announced an agreement with the
French State regarding the sale of our Submarine Networks
business. The sale was concluded on 31 December 2024.
Fixed Networks is a leading provider of access infrastructure,
in-home Wi-Fi solutions, cloud solutions and virtualization, with
the global number one position in XGS PON (fast-becoming the
dominant global volume technology) for the fifth consecutive
year(1). In 2024, we extended our technology leadership in
broadband, including by working with nbn on the world’s first
demonstration of 10G, 25G, 50G and 100G speeds over a live
fiber broadband network; supporting HKBN in its launch of
Asia’s first 25G PON broadband service; and – with Google
Fiber – making the first US trial of 50G PON speeds over a live
fiber broadband network. With AT&T we are accelerating
future-ready fiber broadband growth. We are proud of our
efforts to connect the underserved: in South Africa, we will
expand broadband access with Fibertime. In 2024, we
introduced Lightspan MF-8 – a high-capacity fiber platform
supporting 10/25/50G and future 100G PON services – and
extensions to our popular Corteca portfolio to help customers
monetize their network investments. With 400+ fiber customers
in 130 countries, we are well placed to enable continued
broadband rollout and to support coming upgrade waves.
IP Networks delivers IP routing and data center networking
solutions to customers in the enterprise, webscale, cloud
and service provider segments. We led the market in 2024
for the fourth year in a row in IP edge routing, and in the third
quarter of 2024 achieved the number one position in total
routing in North America for the first time(2). Some of our
customers include NL-ix, for which we are creating high-
performance 800 Gigabit Ethernet routing; Globe Telecom,
for which we are modernizing the BNG network; and e& UAE,
which selected Nokia’s cloud interconnect solution to provide
connectivity services to hyperscalers. Our focus on data
centers is already beginning to bear fruit. In November, Nokia
announced a multi-year supply arrangement with Microsoft
Azure for data center switching. In September, CoreWeave
announced it will deploy Nokia IP and optical platforms to
interconnect data centers across the US and Europe in support
of high-performance AI workloads, and in the same month we
introduced our Event-Driven Automation platform – the
industry’s most modern data center infrastructure automation
platform, built for the AI era.
Optical Networks has established itself among the industry
leaders in optical transport networks for long-haul, regional and
metro applications, holding the number one position in India
and number two position in Europe and MEA(3). Our latest
photonic service engine – PSE-6s – continues to set new speed,
capacity and distance records and, in 2024, we expanded our
portfolio with optical network solutions, enabling network
operators to scale capacity with lower power per bit, and to
provide higher capacity service speeds to the metro edge.
Our service provider customers include Türk Telekom, with
which we broke the 800Gbps transmission world record on a
long-haul commercial network, and Colt Technology Services,
for which we collaborated with Windstream Wholesale and our
colleagues in IP Networks to complete the world’s first ultra-
fast 800GbE optical and IP service trial, connecting London
and Chicago. We are also working with SURF (an organization
for IT collaboration in education and research) to prepare
for a massive upgrade to CERN’s Large Hadron Collider.
↗
EDA – a data center platform for
the AI era.
The acquisition of leading optical network provider Infinera will
further boost Optical Networks’ ambitions by adding scale,
accelerating our ability to innovate and further diversifying
our customer base, particularly into North America and the
webscale segment.
Competition
Our competitors include Huawei and ZTE, along with Calix and
Adtran (Fixed Networks), Cisco, Arista and Juniper (IP Networks)
and Ciena (Optical Networks).
(1) Dell’Oro, Q3 2024
(2) Dell’Oro, Q3, 2024
(3) Rolling four quarters, Omdia, Q3 2024
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Mobile Networks
Mobile Networks creates products and services covering
all 3GPP mobile technology generations. Its portfolio
includes products for radio access networks (RAN) and
microwave radio links for transport networks, solutions
for network management, as well as network planning,
optimization, network deployment and technical support
services. Customers include Communication Service
Providers (CSP), industrial enterprises, governments and
the defense sector.
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“Despite the continued CSP market decline
in 2024, Mobile Networks has successfully
grown market share with many of our
existing RAN customers and has also won
completely new CSP customers. This is a
testament to our strong technology,
portfolio and customer relationships.”
TOMMI UITTO
PRESIDENT, MOBILE NETWORKS
12
new CSP RAN customers in 2024
2024 in brief
In 2024, Mobile Networks net sales declined 21% year-on-year to
EUR 7.7 billion. Despite the lower net sales, we delivered a segment
operating margin of 5.3% driven by favorable business and market
mix as well as improved cost competitiveness, cost control measures
and strong execution. We also concluded an agreement with AT&T
which decided to continue with another RAN vendor for commercial
reasons, leading to an accelerated revenue of EUR 150 million
offsetting higher variable pay.
■
We now have 334 commercial 5G deals and more than 850 private
wireless customers, with 193 in 5G.
■
Expanded our AirScale portfolio with new market-leading, energy-
efficient Massive MIMO radios to support mobile traffic growth
and accelerate mass 5G rollouts.
■
Collaborated with Nvidia, T-Mobile and SoftBank to steer the AI
transformation and develop AI-RAN to leverage platform
synergies.
■
Closed the acquisition of Fenix Group in the US for addressing
tactical wireless communication in the defense segment.
334
commercial 5G deals
↗
Small cells complement the macro
coverage of CSP networks and fulfill the
specific requirements of industrial and
office environments.
Market overview
Despite the continued market decline in 2024, Mobile Networks
significantly improved gross margin and secured important
deals to first stabilize and then increase market share. While
the market continues to be challenging, we see a substantial
need for operators to further invest in 5G globally with only
approximately 30% of potential mid-band 5G high-capacity
base stations so far deployed outside China. We also see
opportunities to grow in Private Wireless networks for
enterprise segments, Cloud RAN, and 3GPP RAN solutions
for the defense segment.
Business strategy overview and organization
Mobile Networks, strategy is centered on investing in
technology leadership to bring the best network performance
and monetization capabilities to our customers, backed up
by a smooth transition to open, cloud-based networks and 6G.
While protecting and increasing our R&D output, we have
worked to re-baseline our operations for a sustainable cost
structure to meet the market reality during investment cycles.
We have renewed our go-to-market model to increase
closeness to customers, improve customer intimacy, and
improve accountability, while supporting our strategy to build
further scale in the CSP segment and accelerate diversification
to enterprise and defense segments.
In line with aspiration for scale, Mobile Networks announced a
number of deals, where we have increased our market share
with existing CSP customers or won completely new ones.
Among the most important 5G deals in 2024 there were, for
example, NTT DOCOMO and KDDI in Japan, Vodafone Idea and
Bharti Airtel in India, Viettel and VNPT Vinaphone in Vietnam,
TIM in Brazil, Deutsche Telecom in Germany, Iliad Group in
France and Italy, Indosat Ooredoo Hutchison in Indonesia,
Eolo in Italy, MEO in Portugal, Spark in New Zealand, Perfectum
in Uzbekistan, 5G InfraCo in Ghana, and Telecom Egypt.
In many of these deals, we won market share from all of our
key competitors, while some are greenfield networks. In Private
Wireless, highlights of 2024 included deals in the US with
Southern California Edison (SCE) in California, and the City of
Brownsville in Texas, with our partner NTT Data. In our new,
strategic focus segment of defense, we closed the acquisition
of Fenix Group in the US to expand our capabilities in tactical
wireless communication, in addition to Private Wireless
solutions for home bases and forward bases of defense forces.
In 2024, Mobile Networks expanded its AirScale portfolio with
new market-leading energy-efficient Habrok Massive MIMO
radios to support mobile traffic growth and accelerate mass 5G
rollouts. We also introduced compact Tuuli outdoor baseband
solutions, supporting double the cell capacity while reducing
energy consumption by 40%. Our products are ready for the
evolution to 5G-Advanced and beyond. Our portfolio also serves
the growing demand from enterprises, public safety and defense.
Our innovative all-in-one 5G small cell solution, Kolibri,
complements CSP macro coverage and fulfills enterprise
requirements for cost efficiency and scalability. We also
expanded our Wavence microwave transport portfolio with
new products for both rural and dense urban deployments.
We introduced a new ‘extreme deep sleep’ power-saving mode
for AirScale radios, which helps our customers reduce energy
consumption and costs. We also launched Virtual Power Plant,
a unique near-real-time control solution that enables CSPs to
monetize base station backup batteries in energy markets,
including frequency regulation market.
We completed pilots of our commercial Cloud RAN solution,
verifying its feature parity, performance consistency and
interoperability with purpose-built RAN based on our anyRAN
approach. Alongside cloudification, AI will be the next
transformational step for RAN evolution. Nokia is a founding
member of the AI‑RAN Alliance and collaborates with leading
companies such as Nvidia, T-Mobile and SoftBank to steer
this transformation and develop AI-RAN to leverage
platform synergies.
We have AI capabilities in our market-leading MantaRay
portfolio for intelligent network management and autonomous
optimization. Examples of AI in our services include predictive
hardware analytics with up to 90% fault prediction accuracy,
Nokia AI Digital Assistant, the industry’s first conversational AI
chatbot, and the Hazard Detection Lens, an AR application for
enhancing safety at deployment sites.
Competition
The RAN market is a highly consolidated market. Our main
competitors are Huawei, Ericsson, Samsung and ZTE, but there
are also a number of smaller competitors competing in specific
technology or regional sub-segments, such as NEC, Fujitsu,
Mavenir, Rakuten Symphony and JMA Wireless. In microwave,
our key competitors include Ceragon, Aviat and ZTE alongside
Huawei and Ericsson.
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Nokia in 2024
Cloud and
Network Services
Cloud and Network Services provides open, secure, automated,
and scalable software and solutions that accelerate the journey of
service providers and enterprises to autonomous networks and new
value creation. Cloud and Network Services invests in technologies
that are critical to our customers’ growth: 5G core, secure
autonomous networks, private wireless, industrial edge and
network APIs. These solutions, increasingly available in a SaaS
model, help customers capture the unfolding opportunities
of digitalization, AI and cloud.
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“We made considerable progress in driving
our strategy forward in 2024; winning new
5G Core standalone customers; furthering
our leadership position in private wireless and
industrial edge; and expanding the network
API ecosystem with our Network as Code
platform – all demonstrating the benefits
of the focused investment we have made in
recent years to drive technology leadership
and growth.”
RAGHAV SAHGAL
PRESIDENT, CLOUD AND NETWORK SERVICES
Nokia had the most CSP customers of 5G
Standalone Core in the industry, with
123
at the end of 2024
2024 in brief
Our net sales decreased by 6% year-on-year while our segment
operating margin slightly increased. These results were
accompanied by a host of customer wins and deployments,
including the following key developments:
■
Partnered with Infobip to enable the global developer
community to better leverage network APIs.
■
Acquired Rapid’s technology and R&D unit to strengthen
development of Nokia network API solutions and ecosystem.
■
Deployed 5G standalone core with O2 Telefónica Germany on
Amazon Web Services in the cloud.
■
Strengthened Vodafone Idea’s network security with Nokia
NetGuard Endpoint Detection and Response.
■
Collaborated with Swisscom Broadcast to deploy the largest
Drones-as-a-Service network in Switzerland.
■
Announced a strategic partnership with Dell to advance
network cloud transformation and private 5G.
Nokia continued to have marketplace
leadership in private wireless networking with
850
customers, of which
182
are 5G
Market overview
The estimated addressable market in which Cloud and Network
Services competes is composed broadly of communication
service providers (CSP) and enterprise private wireless
companies. This market was approximately EUR 21.8 billion
in 2024, excluding China and Russia.
The CSP market was relatively flat in 2024. Nonetheless,
this market is experiencing an important shift to automation
across core and applications, network programmability
and monetization, security, and software subscription
service models.
The enterprise private wireless market saw strong, year-on-
year growth in 2024, covering campus edge verticals such as
manufacturing, logistics, energy and natural resources; and the
Enterprise WAN market, comprised of verticals such as utilities,
railways and the public sector.
Business strategy overview and organization
In 2024, Cloud and Network Services continued to invest in the
strategic growth areas of 5G Core, Private Wireless, Digital
Operations, AI and Analytics, Security, and Monetization to drive
the digital ecosystem that is essential to 5G value creation. We
are focused on differentiators that have the potential to bring
new capabilities to our CSP and enterprise customers, including:
■
Network Monetization Platform: Our Network as Code platform
enables application developers and CSPs to accelerate the
work of producing software applications for new enterprise,
industrial and consumer use cases, and monetizing 5G and
4G network assets beyond basic connectivity.
■
Autonomous Networks: Our Autonomous Networks Fabric
and Application Suite reduce the cost and complexity of
managing the network, enable faster rollout of new apps
and use cases, and provides a foundation for API
programmability and monetization.
■
Private Wireless: Nokia continues to be considered the
leading vendor of private wireless networks to enterprises.
Our Private Wireless Campus Edge solution remains
unique in the market with its extended portfolio, enabling
enterprises to advance beyond connectivity into mission-
critical edge cloud, AI, and Industry 4.0 digital transformation.
■
Software-as-a-Service (SaaS): Cloud and Network Services
is investing to make our go-forward products SaaS native.
Nokia continues to increase the percentage of recurring
revenue through new business models in Enterprise
Campus Edge and SaaS.
Competition
The market in which Cloud and Network Services competes
has vendors and other industry participants which may on
occasion be a customer, a partner, or a direct competitor,
depending on the nature of the commercial engagement.
Cloud and Network Services regularly builds and nurtures
alliances with partners such as IT vendors, hyperscalers,
and systems integrators, which are increasingly influential
in this space.
The competitive environment comprises many networking
companies, infrastructure and application software suppliers,
services specialists, hyperscalers, cloud providers and a wide
range of industry segment businesses.
In 2024, Nokia was rated #1 again by Appledore in AIOps and
Cross Domain Orchestration(1); rated #1 again by Analysys
Mason in Automated Assurance(2); named a Leader in the
2024 Gartner® Magic Quadrant™ for CSP 5G Core Network
Infrastructure Solutions(3); ranked at the top of a GigaOm
industry report for Nokia’s extended detection response
market (XDR) security platform, NetGuard Cybersecurity
Dome(4); rated #1 by Global Data in core automation and
cloud(5); ranked as a Leader again by Global Data in Managed
Infrastructure Services(6); and ranked #1 by Omdia for the
number of 5G Core live networks and #1 in Core SaaS(7).
(1)
Appledore Research - Leading Suppliers in Network Automation Software, July 2024
(2)
Analysys Mason - Automated Assurance: worldwide market shares 2023, October
2024
(3)
Gartner 2024 CSP 5G Core Magic Quadrant, July 2024
(4)
GigaOm XDR Radar, April 2024
(5)
Global Data 5G Mobile Core: Competitive Landscape Assessment, February 2024
(6)
Global Data Managed Infrastructure Services, April 2024
(7)
Omdia Core Vendor Market Landscape, July 2024
↗
Our private wireless solutions ensure
secure, high-performance connectivity
tailored to industrial needs.
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Nokia in 2024
Nokia
Technologies
Nokia Technologies is responsible for managing Nokia’s
patent portfolio and monetizing Nokia’s intellectual
property, including patents and technologies.
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“We are in a strong position with the
completion of our smartphone renewals
and the momentum we have built in our
growth areas. But we have not seen the
best from us yet.”
PATRIK HAMMARÉN
PRESIDENT, NOKIA TECHNOLOGIES
7 000+
patent families declared as essential
to the 5G standard
2024 in brief
Net sales for the full year increased 78% to EUR 1 928 million
and segment operating profit increased 106% to EUR 1 514 million.
The smartphone license renewal cycle was completed and significant
progress was made in patent licensing growth areas:
■
Drove innovation, filing over 3 000 new inventions, and reaching
7 000 patent families declared as essential to the 5G standard.
■
Signed around 40 new patent license agreements and
completed our smartphone license renewal cycle.
■
Signed first agreements with direct-to-consumer video
streaming platforms.
■
Made significant progress in China, signing our first two deals in
automotive and with a point-of-sales (POS) manufacturer PAX.
■
Made the world’s first immersive voice and audio call using the
new 3GPP Immersive Voice and Audio Services (IVAS) codec.
■
Signed an agreement with HP covering the use of our video
technologies while courts in Germany and Brazil ruled in our
favor in our dispute with Amazon.
~40
new patent licensing deals signed
’3 000+
new patent applications filed
↗
In June 2024, Nokia made the world’s first
immersive voice and audio call over a
cellular network using the IVAS codec,
which enables 3D spatial sound in real time.
Market overview
Nokia Technologies is responsible for managing Nokia’s patent
portfolio and monetizing Nokia’s intellectual property, including
patents and technologies, building on Nokia’s continued
innovation leadership, long-term investment into research and
development, and decades of driving technology standard
development. Licensees pay royalty fees for the use of
our technology, which we re-invest, along with additional
investment, in developing the next generation of inventions.
Net sales for the full year increased 78% to EUR 1 928 million
and segment operating profit increased 106% at EUR 1 514
million. We signed several significant agreements across our
patent licensing programs, including new deals with OPPO, vivo,
HP, GoPro and Verifone. We concluded our smartphone patent
license renewal cycle which began in 2021. As a result, Nokia
Technologies has entered a period of stability. We made
significant progress in our patent licensing growth areas,
multimedia and IoT, with our first two deals with video
streaming platforms, and first ever agreements with a Chinese
point-of-sales (POS) device manufacturer PAX and two Chinese
car makers. In total, we signed around 40 new patent license
agreements across our licensing programs in 2024.
Business strategy overview and organization
Nokia Technologies has three business areas: Patent Licensing
of Nokia’s patent portfolio; Technology Licensing of Nokia’s
technologies for integration into consumer devices; and brand
partnerships for licensing the Nokia brand.
Our long-term strategy is built on Nokia’s technology leadership.
Given the enabling nature of Nokia inventions in wireless
communications and in multimedia, our patent portfolio
remains highly relevant across multiple sectors and value
chains. The emergence of new form factors and new value
chains continues to open new licensing opportunities for us.
We manage the Nokia patent portfolio, working with other
Nokia business groups, and continue to grow our patent
licensing and monetization activities, which drive most of Nokia
Technologies’ net sales. The core of our business is the mobile
devices licensing program, where we have agreements with
most major smartphone vendors. We also have patent licensing
programs for automotive, consumer electronics, IoT devices and
solutions, video services, and gaming.
Innovation and standards leadership
Nokia is a leader in open standardization and has defined many
of the fundamental technologies used in virtually all mobile
devices. Since 2000, Nokia has invested over EUR 150 billion
in research and development (R&D). As a result, we own one
of the broadest and strongest patent portfolios in the
telecommunications sector with a leading share of cellular
Standard Essential Patents (SEPs), including over 7 000 patent
families declared as essential to 5G. Our portfolio also covers
significant multimedia assets, particularly in video compression
technology. The work of Nokia’s inventors in video research and
standardization has been recognized with five Technology &
Engineering Emmy® Awards. Our inventors also continue to
lead in audio communication. In June 2024, Nokia made the
world’s first immersive voice and audio call over a cellular
network using the new 3GPP Immersive Voice and Audio
Services (IVAS) codec, which allows consumers to hear 3D
spatial sound in real time. Nokia is a leading contributor to
IVAS which is part of the upcoming 5G Advanced standard.
Our patent portfolio has a long lifetime, with the vast majority
of patents still in force in ten years’ time. In 2024, we filed
patent applications on a record number of more than
3 000 new inventions.
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Nokia in 2024
Supply chain,
sourcing and
manufacturing
Nokia’s supply chain is essential for our customers,
our business and for managing customer demand
and supply for our hardware, software and contract
manufactured products.
Our end-to-end operations include sourcing, demand and
supply planning, manufacturing, distribution and logistics.
In 2024, we purchased over EUR 10 billion worth of products
and services from around 9 000 different suppliers.
While the volatile geopolitical operating environment remained
challenging in 2024, we continued to focus on further
developing risk and cost management capabilities and building
resilience through robust partnerships and a regional approach.
Focus on risk and cost management
through digitalization, automation and
inventory management
In 2024, global demand for our equipment continued to
fluctuate, primarily driven by the overall macroeconomic
climate and continued inventory digestion by some customers.
To help us navigate the complexities of market fluctuations and
supply chain disruptions, we continued to work closely with our
customers to form the best possible forecast outlook in the
mid- and long-term to effectively manage risk, prioritize cost
efficiency and enhance resilience. In addition, we maintained
a strong focus on inventory management to offset potential
excess risks.
Furthermore, we continued to develop our risk management
capabilities, supported by increased digitalization and
automation to navigate the rapidly changing business
environment. Inventories and safety buffers were largely kept
upstream on a component level, increasing the flexibility to
react to any potential short-term product type changes.
Building resilience through strong
partnerships and a regional approach
As we continue to develop a robust and sustainable supply
chain that can best serve our customers, maintaining our
focus on resilience is critical.
We continuously optimize our manufacturing, distribution
and supplier network across the regions where we operate,
ensuring we have more than one manufacturing source for
our key volume products. We also further leverage AI and
machine learning capabilities to better develop our supply
chain and factory network.
Our geographically dispersed manufacturing network consists
of both our own manufacturing (4% of the network, based on
number of sites, excluding ASN) and contract manufacturing
partners to minimize geographic and geopolitical risks. Our
network is strategically located around the world, and each year
our spending percentage will vary depending on our regional
demand. In 2024 our spend spread was: Europe 28%, Asia
Pacific, Japan/India 44%, China 16% and the Americas 12%.
Our regional approach will not only enable us to deliver a more
rapid response to our customers’ needs, but also reduce
transportation costs and CO2 emissions.
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Supply chain, sourcing and manufacturing
Nokia in 2024
Sustainability enablement and innovation
We expect our suppliers to adhere to our Third-party Code of
Conduct and we provide them with Nokia Supplier
Requirements that include adherence to the latest Responsible
Business Alliance (RBA) Code of Conduct. The requirements
cover topics such as environment, health, safety and security,
privacy, risk management, labor and human rights, modern
slavery, and ethics. We also run suppliers’ assessments and
audits and provide training to ensure they meet our
requirements and can continuously improve. We work with
them on remediation actions and push to raise the bar on
standards across our ecosystem.
In 2024, we implemented 606 supply chain audits, including
101 on-site in-depth audits on corporate responsibility topics,
36 on-site audits against our Supplier Requirements and
469 supplier assessments using the EcoVadis scorecards.
This year, the number of audits requested by our customers
increased, which shows the positive trend on responsible
supply chain practices in our industry. We are committed to
cutting 50% of our absolute scope 1, 2 and 3 greenhouse
gas emissions by 2030, and in 2024, we announced our
commitment to an overall net-zero target for 2040 across
our value chain (scopes 1, 2 and 3). In 2024, we reached a
99% share of renewable energy in our own factories.
In 2024, we continued intensive work with our electronics
manufacturing services (EMS) suppliers to track their
decarbonization roadmaps as we look to achieve the mutually
agreed target that the Nokia portion of their manufacturing
reaches zero emissions by 2030. We have also set a 50%
reduction target by 2030 for other suppliers, and close
collaboration continued to reduce the emissions specially
by supplier categories with high emission intensity such as
suppliers of integrated circuits, semi-discretes and printed
wiring boards. We recognized supplier climate and circularity
innovations via our annual Supplier Diamond Award under the
Sustainability category.
As part of our circularity program with suppliers, we aim to
increase recycled material content in our mechanical parts
with specific targets for 2030 and actions driven by sourcing
in collaboration with R&D. Moreover, as part of the Mobile
Networks’ Talent Program for Women, we launched a radio site
waste circularity project to develop a global framework to
improve waste management across all markets.
“Design for Environment” is an integral part of our supply chain
sustainability strategy. It aims to ensure Nokia products and
packaging are in line with our policies and goals for product
stewardship and environmental sustainability. We have
continued to collaborate with our suppliers to encourage
sustainable packaging, using alternative materials and
optimized designs to deliver sustainable product packaging,
reducing use of plastic, and increasing recycled content
materials. For example, we have deployed FiberFlute and
honeycomb cardboard solutions to replace plastic cushions in
some product deliveries and are trialing bio-based packaging
materials to further reduce plastic.
As part of our Responsible Minerals Sourcing program, we
expanded the scope to include aluminum and copper, and we
started due diligence activities with our key suppliers related
to these minerals.
Nokia’s target is to have 98% 3TG (tin, tantalum, tungsten,
gold) traceability and conflict-free status to smelter level in our
supply chain, and we aim for an extended due diligence status
for cobalt, mica, aluminum, and copper by 2025.
In our supply chain logistics, we look for innovative ways to
reduce our carbon footprint together with our Logistics Service
Providers (LSPs). As an example, replacement of traditional
truckload services between Hungary and the Netherlands with
the rail pocket wagon service reduced GHG emissions on this
route by 87% annually. Additionally, initiatives to increase
containers fill rates delivered savings by reducing the number
of containers to be transported. We aim to increase the share
of Sustainable Aviation Fuel (SAF) and multimodal
transportation globally.
We are committed to prioritizing and strengthening resilience
and sustainability across the end-to-end supply chain to help
us deal effectively with challenges that arise.
Own manufacturing
As of 31 December 2024, the production capacity for sites
owned by us is noted below:
Country
Location and products(1)
Productive
capacity, net
(m2)(2)
Finland
Oulu: base stations
10 000
India
Chennai: base stations, radio controllers and
transmission systems, fixed networks
15 500
(1)
We consider the production capacity of our manufacturing network to be sufficient
to meet the requirements of our business. The extent of utilization of our
manufacturing facilities varies from plant to plant and from time to time during
the year. None of these facilities is subject to a material encumbrance.
During 2024, Nokia disposed of the following sites:
1) Calais: submarine cables (France), 61 000 m2 net productive capacity
2) Greenwich: submarine cables (United Kingdom), 11 000 m2 net productive
capacity
3) Hannover: radio frequency systems (Germany), 23 500 m2 net productive
capacity
4) Suzhou: radio frequency systems (China), 13 500 m2 net productive capacity.
During 2023, Nokia disposed of the following sites:
1) Trignac: radio frequency systems (France), 7 300 m2 net productive capacity
2) Meriden: radio frequency systems (USA), 31 000 m2 net productive capacity
3) Bydgoszcz: remanufacturing, product integration (Poland), 15 200 m2 net
productive capacity.
During 2022, manufacturing activities ended at the following site:
1) Kilsyth, radio frequency systems (Australia), 5 400 m2 net productive capacity.
(2)
Production capacity equals the total area allotted to manufacturing and to the
storage of manufacturing-related materials.
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Supply chain, sourcing and manufacturing continued
Nokia in 2024
Corporate
governance
Corporate governance statement
32
Regulatory framework
32
Main corporate governance bodies of Nokia
33
General Meeting of Shareholders
33
Board of Directors
34
Group Leadership Team and the President and CEO
46
Risk management, internal control and internal audit functions at Nokia
50
Main procedures relating to insider administration
52
Auditor fees and services
52
Remuneration
53
Highlights
53
Remuneration Report 2024
54
Letter from the Chair of the Personnel Committee of the Board
54
Introduction
56
Pay for performance
57
Global peer group
57
Remuneration of the Board of Directors
58
Remuneration of the President and CEO
59
Remuneration Policy
62
The updated Remuneration Policy for the Board of Directors
62
The updated Remuneration Policy for the President and CEO
63
Remuneration governance
66
Remuneration of the Nokia Group Leadership Team in 2024
67
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Nokia in 2024
Select highlights in our corporate
governance during 2024
■
At the 2024 Annual General Meeting our
shareholders continued to show remarkably strong
support for the Board’s proposals. We continued
applying the individual director election method,
and for the first time, our shareholders elected a
sustainability reporting assurer, in line with the
regulation implementing the EU Corporate
Sustainability Reporting Directive.
■
The Board established a new Strategy Committee for
the purpose of assisting the Board with respect to
various strategic initiatives related to developing our
corporate and business strategies and capturing the
strategic opportunities identified under them.
■
To ensure the innovative and responsible use of AI,
we established a comprehensive AI governance
framework at Nokia in 2024, including a central
steering committee and a separate AI governance
board for the group-level policies and procedures,
incident reporting, coordination and for related
communications.
■
During the year, we had the pleasure to host several
meetings with our largest shareholders to discuss
Nokia’s approach to sustainability, remuneration and
governance, and their expectations in these areas.
This corporate governance statement is prepared in
accordance with Chapter 7, Section 7 of the Finnish Securities
Markets Act (2012/746, as amended) and the Finnish
Corporate Governance Code 2025 (the “Finnish Corporate
Governance Code”).
Regulatory framework
Our corporate governance practices comply with Finnish laws
and regulations, our Articles of Association approved by the
shareholders and corporate governance guidelines (“Corporate
Governance Guidelines”) adopted by the Board of Directors.
The Corporate Governance Guidelines reflect our commitment
to strong corporate governance. They include the directors’
responsibilities, the composition and election of the members
of the Board and its Committees, and certain other matters
relating to corporate governance. We also comply with the
Finnish Corporate Governance Code adopted by the Securities
Market Association.
We follow the rules and recommendations of Nasdaq Helsinki
and Euronext Paris as applicable to us due to the listing of our
shares on these exchanges. Furthermore, as a result of the
listing of our American Depositary Shares on the New York
Stock Exchange (NYSE) and our registration under the U.S.
Securities Exchange Act of 1934, we follow the applicable U.S.
federal securities laws and regulations, including the Sarbanes-
Oxley Act of 2002 as well as the rules of the NYSE, in particular
the corporate governance standards under Section 303A of the
NYSE Listed Company Manual. We comply with these standards
to the extent such provisions are applicable to us as a foreign
private issuer.
To the extent compliance with any non-domestic rules would
conflict with the laws of Finland, we are obliged to comply with
Finnish laws and applicable regulations. There are no significant
differences in the corporate governance practices applied by
Nokia compared with those applied by U.S. companies under
the NYSE corporate governance standards with the exception
that Nokia complies with Finnish law with respect to the
approval of equity compensation plans. Under Finnish law,
stock option plans require shareholder approval at the time of
their launch. All other plans that include the delivery of
company stock in
the form of newly issued shares or treasury shares require
shareholder approval at the time of delivery of the shares
unless shareholder approval has been granted through an
authorization to the Board, a maximum of five years earlier.
The NYSE corporate governance standards require that
equity compensation plans are approved by the company’s
shareholders. Nokia aims to minimize the necessity for, or
consequences of, conflicts between the laws of Finland and
applicable non-domestic corporate governance standards.
In addition to the Corporate Governance Guidelines, the
Committees of the Board have adopted charters that define
each Committee’s main duties and operating principles. The
Board has also adopted the Code of Conduct that applies
to directors, executives, and employees of Nokia, as well as
employees of Nokia’s subsidiaries and affiliated companies
(such as joint ventures) in which Nokia owns a majority of the
shares or exercises effective control. Furthermore, the Board
has adopted the Code of Ethics and Executive Officer Clawback
Policy applicable to our key executives, including the President
and CEO, CFO and Corporate Controller.
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Corporate governance statement
Nokia in 2024
Corporate governance
statement
“In 2024, we continued delivering on Nokia’s commitment to strong corporate
governance and related practices. To do that, the activities of the Board of Directors are
structured to develop the Company’s strategy and to enable the Board to support and
oversee management on its delivery within a transparent governance framework.”
Main corporate governance bodies of Nokia
Pursuant to the provisions of the Finnish Limited Liability
Companies Act (2006/624, as amended) (the “Finnish Companies
Act”), the legislation under which Nokia operates, and Nokia’s
Articles of Association, the control and management of Nokia
are divided among shareholders at a general meeting, the
Board, the President and CEO and the Group Leadership Team,
chaired by the President and CEO.
General Meeting of Shareholders
Nokia’s shareholders play a key role in corporate governance,
with our Annual General Meeting offering a regular opportunity
to exercise their decision-making power in Nokia. In addition,
at the meeting the shareholders may exercise their right to
speak and ask questions.
Each Nokia share entitles a shareholder to one vote at general
meetings of Nokia. The Annual General Meeting decides, among
other things, on the election and remuneration of the Board,
the adoption of annual accounts, the authorization for the
Board to distribute dividend or other assets, discharging the
members of the Board and the President and CEO from liability,
as well as on the election and fees of the external auditor and
the sustainability reporting assurer. The Remuneration Policy is
presented to the general meeting at least every four years and
the Remuneration Report annually. Resolutions of the general
meeting regarding the policy and the report are advisory
in nature.
In addition to the Annual General Meeting, an Extraordinary
General Meeting may be convened when the Board considers
such a meeting to be necessary, or when the provisions of
the Finnish Companies Act mandate that such a meeting
must be held.
The Finnish Companies Act was amended in 2022 to enable and
promote limited liability companies to hold hybrid and virtual-
only general meetings. A virtual general meeting, as defined by
the Finnish Companies Act, is a meeting held without a physical
meeting venue, where shareholders must be able to exercise
their shareholder rights in full by virtual means, including voting
in real time and asking questions orally during the meeting.
The Finnish legislation can be considered a leading example of
protecting shareholders’ rights in virtual general meetings.
Once reliable technical methods for the virtual meeting and
automated foreign shareholder identification become available
in Finland, virtual general meetings are expected to improve
the position of nominee-registered private shareholders
residing outside of Finland, who may have been unable to
attend the general meeting in person or be represented by
proxy. The reduced carbon footprint is also one of the benefits
of virtual general meetings.
Annual General Meeting 2024 and 2025
The Annual General Meeting 2024 took place at the Helsinki
Expo and Convention Centre, on 3 April 2024. We were pleased
to see the high number of votes cast as well as the strong
shareholder support received for the Board’s proposals. For
the third consecutive year, the turnout for the vote stood at
a record-high level.
A total of 77 606 shareholders representing approximately
3 305 million shares and 58.88% of all the shares and votes in
the Company participated the Annual General Meeting. On the
other hand, after the COVID-pandemic, we once again saw a
lower number of shareholders attending in person than in
previous years. To facilitate shareholder participation and
options to follow the meeting in alternative ways, the Company
offered the opportunity to cast votes in advance and to follow
the meeting and ask questions through a live webcast.
Nokia Corporation’s Annual General Meeting 2025 is planned to
be held on 29 April 2025. The Board’s proposals to the Annual
General Meeting 2025 were published on 30 January 2025.
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Nokia in 2024
Corporate governance framework
Board of Directors
The operations of Nokia are managed under the direction of
the Board, within the framework set by the Finnish Companies
Act, Nokia’s Articles of Association and any complementary
rules of procedure as defined by the Board, such as the
Corporate Governance Guidelines and the charters of the
Board’s Committees.
Election and composition of the Board of Directors
Pursuant to our Articles of Association, we have a Board
that is composed of a minimum of seven and a maximum of
12 members. The members of the Board are elected at least
annually at each Annual General Meeting. The candidates are
considered individually and those receiving the most votes shall
be elected pursuant to the Finnish Companies Act. The term of
the Board members begins at the close of the general meeting
at which they were elected and expires at the close
of the following Annual General Meeting. The Annual General
Meeting convenes by 30 June annually.
Our Board’s leadership structure consists of a Chair and Vice
Chair elected annually by the Board and confirmed by the
independent directors of the Board upon the recommendation
of the Corporate Governance and Nomination Committee.
The Chair of the Board has certain specific duties as stipulated
by Finnish law and our Corporate Governance Guidelines. The
Vice Chair assumes the duties of the Chair of the Board in the
event the Chair is prevented from performing his or her duties.
The independent directors of the new Board confirm the
election of the members and chairs for the Board’s
Committees from among the Board’s independent directors
upon the recommendation of the Corporate Governance and
Nomination Committee and based on each Committee’s
qualification standards. These elections take place at the
Board’s assembly meeting following the general meeting.
The Corporate Governance and Nomination Committee aims
to continually renew the Board to have an efficient Board
of international professionals with a diverse mix of skills,
experience and other personal qualities in line with the
diversity principles established by the Board. The Committee
considers potential director candidates based on the short-
and long-term needs of the Company. In the process of
identifying and selecting the candidates matching these
needs and desired profiles, the Committee engages
recruitment firms and external advisers.
Board independence
In accordance with the Corporate Governance Guidelines
adopted by the Board of Directors, the Nokia Board shall have
a majority of directors who meet the criteria for independence
as defined by the Finnish Corporate Governance Code
(independent of both the Company and any significant
shareholders who hold at least 10% or more of the total shares
or voting rights of the Company) and the rules of the NYSE.
Furthermore, all of the members of the Board Committees
shall be independent Directors under the relevant criteria for
independence required by the Finnish Corporate Governance
Code and the applicable rules of the NYSE.
The Board will monitor its compliance with these requirements
for director independence on an ongoing basis. Each independent
director is expected to notify the Chair of the Corporate
Governance and Nomination Committee, as soon as reasonably
practicable, in the event that his or her personal circumstances
change in a manner that may affect the Board’s evaluation of
such director’s independence. The Board of Directors evaluates
the independence of its members annually and, in addition
to this, on a continuous basis with the assistance of the
Corporate Governance and Nomination Committee.
Board diversity
The Board has adopted principles concerning Board diversity
describing our commitment to promoting a diverse Board
composition and how diversity is embedded into our processes
and practices when identifying and proposing new Board
candidates, as well as when proposing re-election of current
Board members.
At Nokia, diversity is not a static concept but rather a relevant
mix of required elements for the Board as a whole that evolves
with time based on, among other things, the relevant business
objectives and future needs of Nokia. Board diversity is treated as
a means of improvement and development rather than an end in itself.
Diversity of our Board is considered from a number of aspects
including, but not limited to, skills and experience, tenure, age,
nationality, ethnicity, cultural and educational backgrounds,
gender, as well as other individual qualities.
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Nokia in 2024
We report annually on our objectives relating to equal
representation of genders and the progress we make. For many
years, we have met our target of having at least 40% of the
Director positions held by members of underrepresented
gender in the Board composition. In the current Board
composition, 40% of the Board members are female and also
in the Board composition proposed to the Annual General
Meeting 2025, 40% of the Board members are female.
We currently have a diverse Board composition in line with the
Board’s diversity principles. There are six different nationalities
and a rather wide age and tenure range represented on the
Board. Each Board member has a unique skill set that supports
Nokia's business and relevant areas of expertise close to the
business. These primary areas of expertise of the current
and proposed new Board members that are relevant to our
business have been highlighted in the skills matrix.
Current members of the Board of Directors
The Annual General Meeting held on 3 April 2024 elected
ten members to the Board for a term ending at the close
of the next Annual General Meeting. Timo Ahopelto, Sari
Baldauf, Elizabeth Crain, Thomas Dannenfeldt, Lisa Hook,
Thomas Saueressig, Søren Skou, Carla Smits-Nusteling and Kai
Öistämö were re-elected as Board members. Mike McNamara
was elected as a new Board member. Following the meeting,
the Board re-elected Sari Baldauf to serve as Chair and
re-elected Søren Skou as Vice Chair of the Board for the
same term.
The current members of the Board are all non-executive and
for the term that began at the Annual General Meeting 2024,
all Board members were determined to be independent of
Nokia and its significant shareholders under the Finnish
Corporate Governance Code and the NYSE rules, as applicable.
In addition to biographical information of the Board members,
the table in the upper right corner sets forth the number of
shares and American Depositary Shares (ADSs) held by the
Board members. As at 31 December 2024, they held a total
of 1 056 085 shares and ADSs in Nokia, representing
approximately 0.02% of our total shares and voting rights
excluding shares held by the Nokia Group.
Biographical details of the Board members
Gender
Year of Birth
Nationality
Tenure(1)
Independent of the
company and major
shareholders
Shares(2)
ADSs(2)
Sari Baldauf (Chair)
Female
1955
Finnish
6
Independent
343 568
Søren Skou (Vice Chair)
Male
1964
Danish
5
Independent
114 397
Timo Ahopelto
Male
1975
Finnish
1
Independent
45 350
Elizabeth Crain
Female
1964
American
1
Independent
47 843
Thomas Dannenfeldt
Male
1966
German
4
Independent
144 948
Lisa Hook
Female
1958
American
2
Independent
59 558
Mike McNamara
Male
1964
Irish
0
Independent
23 932
Thomas Saueressig
Male
1985
German
2
Independent
56 928
Carla Smits-Nusteling
Female
1966
Dutch
8
Independent
160 475
Kai Öistämö
Male
1964
Finnish
2
Independent
59 086
(1)
Terms as Nokia Board member before the Annual General Meeting on 3 April 2024.
(2)
The number of shares or ADSs includes shares and ADSs received as director compensation as well as shares and ADSs acquired through other means. Stock options or other
equity awards that are deemed as being beneficially owned under the applicable SEC rules are not included.
Experience and primary skills of the Board members
Business
Exec. role with
P&L
responsibility
External
boardroom
roles/
Governance
Finance and
accounting
Legal/Public
policy/
Compliance
Communications
service provider
market segment
Enterprise
market
segment
Technology Cybersecurity
Environmental/
Social issues
Current Board
members
Sari Baldauf
✔
✔
✔
✔
✔
✔
Søren Skou
✔
✔
✔
✔
✔
Timo Ahopelto
✔
✔
✔
✔
✔
Elizabeth Crain
✔
✔
✔
✔
Thomas Dannenfeldt
✔
✔
✔
✔
✔
Lisa Hook
✔
✔
✔
✔
✔
✔
✔
Mike McNamara
✔
✔
✔
✔
✔
Thomas Saueressig
✔
✔
✔
✔
✔
✔
✔
Carla Smits-Nusteling
✔
✔
✔
✔
Kai Öistämö
✔
✔
✔
✔
✔
✔
Proposed new Board
members
Pernille Erenbjerg
✔
✔
✔
✔
✔
✔
✔
Timo Ihamuotila
✔
✔
✔
✔
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Nokia in 2024
Director time commitments
The Corporate Governance and Nomination Committee
monitors closely the time commitments of the Board members
and annually reviews the Directors’ attendance rate at the
Board and Committee meetings to ensure they are able to
devote the appropriate time to the Company to carry out
their duties and responsibilities.
The Corporate Governance Guidelines of the Board include
numerical limits and a process for pre-clearance of new roles
in public companies. Directors should not serve on more than
four other boards of public companies in addition to the Nokia
Board, and on no more than three other boards of public
companies in addition to the Nokia Board, in cases where they
serve as board chair or lead independent director outside the
Nokia Board. The Audit Committee members should not serve
on more than two other audit committees of public companies
in addition to the Nokia Audit Committee.
No positions in excess of these limits may be held without
prior consent by the Chair of the Board and the Chair of
the Corporate Governance and Nomination Committee
determining that such positions would not impair the
Director’s service on the Nokia Board or Audit Committee.
The Corporate Governance and Nomination Committee
will annually, ahead of preparing the proposal on the Board
composition, review and assess the Directors’ current and
planned time commitments outside the Company to seek
affirmation that all Directors acknowledge the time
commitment principles set forth in the Corporate
Governance Guidelines of the Board.
The Committee also reviews under its related guidelines
and procedure the proposed new Director candidates’ time
commitments during the proposed term to ensure that they
are able to dedicate sufficient time to their responsibilities on
the Nokia Board.
As part of the assessment, the proposed new Directors may
have been required to reduce their current commitments
during a short transition period before the next Annual General
Meeting following their appointment.
Proposed members of the Board of Directors
Proposals of the Board of Directors to the Annual General
Meeting 2025 were published on 30 January 2025. On the
recommendation of the Corporate Governance and Nomination
Committee, the Board proposes to the Annual General Meeting
that the number of Board members be ten. Søren Skou and
Carla Smits-Nusteling have informed the Committee that they
will no longer be available to serve on the Nokia Board of
Directors after the Annual General Meeting.
Consequently, on the recommendation of the Corporate
Governance and Nomination Committee, the Board proposes
that the following eight current Board members be re-elected
as members of the Nokia Board of Directors for a term ending
at the close of the next Annual General Meeting: Timo
Ahopelto, Sari Baldauf, Elizabeth Crain, Thomas Dannenfeldt,
Lisa Hook, Mike McNamara, Thomas Saueressig and Kai Öistämö.
Furthermore, the Board proposes, on the recommendation of
the Corporate Governance and Nomination Committee, that
Pernille Erenbjerg, Danish citizen, former CEO and President of
TDC Group; and Timo Ihamuotila, Finnish citizen, Chief Financial
Officer of ABB Ltd, be elected to the Board for a term ending
at the close of the next Annual General Meeting. Pernille
Erenbjerg has a strong background in financial management,
corporate leadership, and board governance as well as broad
experience from the telecoms, media and tech industries. Timo
Ihamuotila is a former Chief Financial Officer of Nokia 2009–
2016 and a member of the Nokia Group Leadership Team
2007–2016, with a total of more than 20 years of work
experience at Nokia. Timo Ihamuotila will bring extensive
financial expertise, strategic leadership, and a deep
understanding of global markets to the Board, along with
experience in the communications, software and services
industries. The candidates’ complementary skills will enhance
the Board's ability to navigate complex financial landscapes,
drive strategic initiatives, and ensure robust corporate
governance.
The Corporate Governance and Nomination Committee will
propose in the assembly meeting of the new Board of Directors
that Sari Baldauf be re-elected to serve as Chair of the Board
and Timo Ihamuotila be elected to serve as Vice Chair of the
Board, subject to their election to the Board of Directors.
The Board composition proposed to the Annual General
Meeting 2025 has representation of five nationalities and 40%
of the proposed members are female.
The proposed members of the Board are non-executive and
for the term beginning at the Annual General Meeting 2025
they have been determined to be independent of Nokia
and its significant shareholders under the Finnish Corporate
Governance Code and the rules of the NYSE. Any possible
changes impacting the independence assessment would
be assessed as of the date of the Annual General Meeting.
The Corporate Governance and Nomination Committee has
prepared the composition of the Board of Directors to the
Annual General Meeting 2025 after assessing proposed
Directors’ external time commitments, and taken into account
shareholders’ expectations in this regard. Timo Ihamuotila
has confirmed to the Corporate Governance and Nomination
Committee that he will be reducing his mandates in public
companies by one position before the next Annual General
Meeting following his appointment to the Nokia Board.
Nokia is proud to continue to be among the first Finnish listed
companies providing its shareholders with the opportunity to
consider each Director candidate individually since our Annual
General Meeting 2023, in line with the
global market practice.
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Biographical details of our current Board members
Chair Sari Baldauf
Vice Chair Søren Skou
Timo Ahopelto
Elizabeth Crain
b. 1955
b. 1964
b. 1975
b. 1964
Chair of the Nokia Board since 2020. Nokia
Board member since 2018. Member of the
Corporate Governance and Nomination
Committee, the Personnel Committee
and the Strategy Committee.
Master of Business Administration, Helsinki
School of Economics and Business
Administration, Finland. Bachelor of Science,
Helsinki School of Economics and Business
Administration, Finland. Honorary
doctorates in Technology (Helsinki
University of Technology, Finland) and
Business Administration (Turku School of
Economics and Business Administration and
Aalto University School of Business, Finland).
Executive Vice President and General
Manager, Networks Business Group, Nokia
1998–2005. Various executive positions
at Nokia in Finland and in the United
States 1983–1998.
Chair of the Board of the Finnish Climate
Leadership Coalition (CLC). Senior Advisor
of DevCo Partners Oy.
Member of the Board of Technology
Industries of Finland 2021–2023. Member
of the Board of Directors of Aalto
University 2018–2023. Member of the
Supervisory Board of Mercedes-Benz
Group AG 2008–2023. Member of the
Supervisory Board of Deutsche Telekom
AG 2012–2018. Chair of the Board of
Directors of Fortum Corporation 2011–
2018. Member of the Board of Directors
of Akzo Nobel 2012–2017.
Vice Chair of Nokia Board since 2022.
Nokia Board member since 2019.
Chair of the Corporate Governance and
Nomination Committee and member
of the Strategy Committee.
MBA (honours), IMD, Switzerland.
Bachelor of Business Administration,
Copenhagen Business School, Denmark.
Maersk International Shipping Education
(M.I.S.E.).
Chief Executive Officer of A.P. Møller –
Mærsk A/S 2016–2022. Chief Executive
Officer of Maersk Line 2012–2016.
Chief Executive Officer of Maersk Tankers
2001–2011. Variety of executive roles,
senior positions and other roles at A.P.
Møller – Mærsk since 1983.
Chair of the Board of the Mærsk
Mc-Kinney Møller Center for Zero Carbon
Shipping (a not-for-profit foundation).
Chair of the Board of HES International.
Chair of of the Board of Controlant hf.
Chair of the Board of Bygma A/S. Member
of the Board of CV Obel A/S. Senior
Advisor to Global Infrastructure Partners
(GIP), Chair of GIP portfolio Companies
VTG GmbH and Skyborn Renewables
GmbH.
Founding Partner of Lifeline Ventures.
Nokia Board member since 2023.
Member of the Personnel Committee
and the Technology Committee.
Master’s degree in Industrial
Management, Helsinki University of
Technology, Finland.
Head of Strategy and Business
Development, Blyk 2006–2009. Founding
CEO, Vice President of Worldwide
Commercial Operations, CRF Health
2000–2006. Consultant, McKinsey &
Company 1999–2000.
Chair of the Board of Directors of Canatu
Plc (former Lifeline SPAC I Plc). Chair of
the Board of Finnish Startup Community.
Member of the Board of Directors of
Solidium Oy and various other board
positions in private companies.
Member of the Board of Directors of
Digital Workforce Services Plc 2016–2025.
Member of the Board of Finnish Business
and Policy Forum EVA and Research
Institute for Finnish Economy (ETLA)
2015–2024. Member of the Board of
Directors of Tietoevry Corporation 2017–
2023. Chair of the Board of Slush
Conference 2018–2023 and member of
the Board 2013–2018. Member of the
Board of Business Finland 2014–2020.
Member of the Board, Startup
Foundation 2015–2018.
Nokia Board member since 2023. Chair of
the Strategy Committee and member of
the Personnel Committee.
MBA, the Wharton School at the
University of Pennsylvania, United States.
Bachelor of Science in Economics, Arizona
State University, United States.
Advisory Partner, the Consello Group. Co-
Founder of Moelis & Company; served as
the Chief Operating Officer 2007–2023.
Managing Director, Office of the CEO at
UBS Investment Bank 2005–2007.
Chief Operating Officer and Chief
Administrative Officer of the UBS
Investment Banking Department
Americas franchise 2001–2005.
Investment Principal, McCown De Leeuw
& Company 2000–2001. Investment
Principal, Morgan Stanley Capital Partners
1997–2000. Vice President, Investment
Banking, Merrill Lynch & Co. 1994–1997.
Associate, Investment Banking, J.P.
Morgan Securities 1992–1994. Analyst,
Merrill Lynch & Co. 1988–1990.
Trustee Emeritus, The Royal Academy
Trust, London.
Member of the Board of Directors
of Exscientia Plc 2021–2024. Member
of the Board of Directors of Moelis &
Company 2017–2021.
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Biographical details of our current Board members continued
Thomas Dannenfeldt
Lisa Hook
Mike McNamara
b. 1966
b. 1958
b. 1964
Nokia Board member since 2020. Chair of
the Personnel Committee and member of
the Audit Committee and the Strategy
Committee.
Degree in Mathematics, University of
Trier, Germany.
Chief Financial Officer of Deutsche
Telekom AG 2014–2018. Chief Financial
Officer of Deutsche Telekom’s German
operations 2010–2014. Various
operational positions (sales, marketing,
customer care, finance and procurement
in fixed and mobile business, national
and international positions) at Deutsche
Telekom 1992–2010.
Chair of the Supervisory Board of
Ceconomy AG and Chair of the
Presidential Committee and Strategy
Committee. Member of the Board of
Advisors at axxessio GmbH.
Member of the Board of Directors of
T-Mobile US Inc. 2013–2018. Member of
the Board of Directors of Buy-In 2013–
2018. Chair of the Board of Directors of
T-Systems International 2013–2018.
Chair of the Board of Directors of EE Ltd.
2014–2016.
Nokia Board member since 2022.
Member of the Audit Committee,
the Corporate Governance and
Nomination Committee and the Strategy
Committee.
Juris Doctorate, Dickinson School of Law
at Pennsylvania State University, United
States. Bachelor’s degree in Public Policy,
Duke University, United States.
President and CEO of Neustar, Inc. 2010–
2018 and COO 2008–2010. President
and CEO of Sunrocket, Inc. 2006–2007.
Executive positions at America Online,
Inc. 2000–2004. Previous positions as
Partner at Brera Capital Partners,
managing director of Alpine Capital
Group, LLC., various executive positions
at Time Warner, Inc., legal adviser to the
Chairman of the Federal Communications
Commission, and General Counsel of the
Cable Group at Viacom International, Inc.
Member of the Board of Directors of FIS
Global Inc. Lead Independent Director of
the Board of Directors of Philip Morris
International. Member of the Board of
Zayo Group. Chair of Advisory Board of
Trilantic Capital Partners. Member of the
US National Security Telecommunications
Advisory Committee.
Member of the Board of Directors of
Ritchie Bros. Auctioneers Inc. 2021–2023,
Ping Identity Holding Corp. 2019–2022,
Partners Group Holdings 2020–2021,
Unisys Corp. 2019–2021, Neustar, Inc.
2010–2019 and RELX Plc 2006–2016.
Nokia Board member since 2024.
Member of the Audit Committee and
the Technology Committee.
Bachelor of Engineering, University
College Dublin, Ireland.
Strategic Advisor, Target Corporation
2022–2023. Executive Vice President
and Chief Information Officer, Target
Corporation 2015–2022. Chief
Information Officer, Tesco 2011–2015.
Director of Operations Development and
IT, Tesco 2006–2011. Chief Technology
Officer Tesco.com, Tesco 1999–2006.
Senior Manager, Accenture 1991–1998.
Computer Programmer, British Telecom
1989–1991.
Member of the Board of Directors of
Hawaiian Holdings, Inc. 2020–2024.
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Biographical details of our current Board members continued
Thomas Saueressig
Carla Smits-Nusteling
Kai Öistämö
b. 1985
b. 1966
b. 1964
Member of the Executive Board of SAP SE
and Global Head of SAP Product
Engineering. Nokia Board member since
2022. Member of the Technology
Committee.
Degree in Business Information
Technology, University of Cooperative
Education in Mannheim, Germany. Joint
Executive MBA from ESSEC, France and
Mannheim Business School, Germany.
Chief Information Officer of SAP SE
2016–2019, Vice President, Global Head
of IT Services of SAP SE 2014–2016. Held
various positions at SAP in Germany since
2007, including assignment in the SAP
Labs Silicon Valley in Palo Alto, California,
the United States.
Member of the Young Global Leaders of
the World Economic Forum. Member of
the Industry Advisory Board of the
Munich Institute of Robotics and
Machine Intelligence (MIRMI).
Nokia Board member since 2016. Chair of
the Audit Committee and member of the
Corporate Governance and Nomination
Committee.
Master’s Degree in Business Economics,
Erasmus University Rotterdam, the
Netherlands. Executive Master of Finance
and Control, Vrije University Amsterdam,
the Netherlands.
Member of the Board of Directors and
Chief Financial Officer of KPN 2009–2012.
Various financial positions at KPN 2000–
2009. Various financial and operational
positions at TNT/PTT Post 1990–2000.
Member of the Board and Chair of the
Audit Committee of CVC Capital Partners
plc. Member of the Board of Directors of
the Stichting Continuïteit Ahold Delhaize
(SCAD) foundation.
Member of the Board of Directors of
Allegro.eu SA 2020–2024. Chair of the
Board of Directors of TELE2 AB 2013–
2023. Lay Judge in the Enterprise Court
of the Amsterdam Court of Appeal 2015–
2022. Member of the Supervisory Board
and Chair of the Audit Committee of
ASML 2013–2021. Member of the
Management Board of the Unilever Trust
Office 2015–2019.
President and CEO of Vaisala Corporation.
Nokia Board member since 2022. Chair of
the Technology Committee and member
of the Corporate Governance and
Nomination Committee.
PhD in computer science, Tampere
University of Technology, Finland.
Chief Operating Officer of InterDigital,
Inc. 2018–2020. Executive Partner of Siris
Capital Group 2016–2018. EVP, Chief
Development Officer at Nokia 2010–
2014. EVP, Devices at Nokia 2008–2010.
EVP, Mobile Phones Business Group at
Nokia 2006–2008. Several previous
positions at Nokia 1991–2006.
Venture Partner of Kvanted Oy.
Chairman of the Board of Fastems Group
2014–2022. Member of the Board of
Directors of Sanoma Group 2010–2021.
Chairman of the Board of Helvar Oy Ab
2014–2020. Member of the Board of
Directors of Mavenir Plc 2017–2018.
Member of the Board of Directors of
Digia / Qt Group Oyj 2015–2018. Member
of the Board of Directors of InterDigital,
Inc. 2015–2018. Member of the Board of
Directors of oikian solutions Oy 2014–
2018. Chairman of the Board, Tampere
University 2013–2017. Chairman of the
Board of Directors, Tekes 2012–2014.
Member of the Board of Directors of
Nokian Renkaat Plc 2008–2010.
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Operations of the Board of Directors
The Board represents and is accountable to the shareholders
of Nokia. While its ultimate statutory accountability is to the
shareholders, the Board also takes into account the interests
of Nokia’s other stakeholders. The Board’s responsibilities are
active, not passive, and include the responsibility to evaluate
the strategic direction of Nokia, its management policies and
the effectiveness of the implementation of such by the
management on a regular basis. It is the responsibility of the
members of the Board to act in good faith and with due care,
so as to exercise their business judgment on an informed basis,
in a manner that they reasonably and honestly believe to be in
the best interests of Nokia and its shareholders. In discharging
this obligation, the members of the Board must inform
themselves of all relevant information reasonably available to
them. The Board and each Board Committee also have the
power to appoint independent legal, financial or other advisers
as they deem necessary. The Company will provide sufficient
funding to the Board and to each Committee to exercise
their functions and provide compensation for the services
of their advisers.
The Board has the responsibility for appointing and discharging
the President and Chief Executive Officer, Chief Financial
Officer and Chief Legal Officer. The Board is ultimately
responsible for, and its duties include, monitoring and
reviewing Nokia’s financial reporting process, the effectiveness
of related control and audit functions and the independence of
Nokia’s external auditor, as well as monitoring the Company’s
statutory audit. The Board’s responsibilities also include
overseeing the structure and composition of our top
management and monitoring legal compliance and the
management of risks related to our operations. In doing so,
the Board may set annual ranges and/or individual limits for
capital expenditures, investments and divestitures and other
financial and non-financial commitments that may not be
exceeded without a separate Board approval.
In risk management, the Board’s role includes risk analysis
and assessment in connection with financial, strategy and
business reviews, updates and decision-making proposals.
Risk management policies and processes are an integral part
of Board deliberations and risk-related updates are provided to
the Board on a recurring basis. For a more detailed description
of our risk management policies and processes, refer to the
“Risk management, internal control and internal audit functions
at Nokia—Risk management principles” section.
The Board approves and the independent directors of the
Board confirm the compensation and terms of employment of
the President and CEO, subject to the requirements of Finnish
law, upon the recommendation of the Personnel Committee
of the Board. The compensation and terms of employment of
the other Group Leadership Team members are approved by
the Personnel Committee upon the recommendation of the
President and CEO.
Board oversight of environmental and social activities and
governance practices
Under our Corporate Governance Guidelines, the Board
evaluates Nokia’s environmental and social activities and
governance practices (ESG), related risks and target setting as
well as their implementation and effectiveness across the
Company. In 2024, the Board reviewed our sustainability
strategy and targets, approved the targets on climate change
in the long-term incentive plan, approved the targets on health
and safety and diversity included in the short-term incentive
plan and monitored them and other ESG targets, as well as the
evolving ESG requirements and expectations, investor
feedback, our disclosure approach, and Nokia’s net-zero
commitment and roadmap.
In addition, the Board Committees monitor environmental
and social developments and activities in the Company in
their respective areas of responsibilities. The Audit Committee
reviews sustainability disclosures annually, as well as the
information on the use of conflict minerals in Nokia’s products
presented in the annual reports and the related regulatory
filings. During 2024, the Audit Committee’s responsibilities
included the continued implementation planning of new
climate- and other sustainability reporting requirements,
including the double materiality assessment, preparing the
proposal for election of the auditor carrying out the assurance
of the sustainability reporting, and oversight of the ethics and
compliance program.
The Personnel Committee oversees human capital
management, including personnel policies and practices
related to Nokia’s culture, physical safety, employee well-being,
diversity, recruiting, development and retention. In 2024,
the Personnel Committee focused, among other things, on a
people risk review, including physical safety and succession
planning.The Committee has also recommended to the Board
to include carbon emission reduction in the metrics of the
long-term incentive plan as well as diversity and health
and safety as metrics in the short-term incentive plan.
The Corporate Governance and Nomination Committee
assesses and advises the Board on ESG-related activities
and practices, aiming to enhance the governance structure
supporting them. The Technology Committee reviews how the
Company’s ESG strategy embeds into its technology strategy
and roadmaps.
Board oversight of cybersecurity
Nokia group-level security is set up in four domains: product,
service, information, and customer security. While the oversight
of the security risks and their management, including
cybersecurity, is a Board level responsibility in the Company,
the detailed reviews of the different security domains are
allocated to the Committees of the Board. These Committees
are responsible for monitoring and assessing the security,
including cybersecurity-related risks and reporting to the Board
in their respective areas of responsibilities. The responsibilities
of the Audit Committee include oversight of the management
and processes related to the IT and services security risks and
maturity, including security-related controls, compliance,
incident process, disclosures and risk management. The
Technology Committee oversees the product and customer
security risk management. The Committees report to the
Board on a regular basis and prepare recommendations to the
Board, whenever deemed necessary. The Board also receives
regular updates on cybersecurity.
Board oversight of Artificial Intelligence (AI)
The proliferation of AI technologies is creating new
opportunities for innovation. To ensure the responsible use of
AI, particularly with respect to ethics, privacy, and security, we
established a comprehensive AI governance framework in 2024
at Nokia, including a central steering committee and a separate
AI governance board for the group-level policies and
procedures, incident reporting, coordination and related
communication. The Board’s oversight of AI development is
based on principles similar to those we apply to other advanced
technologies. The Technology Committee of the Board has
reviewed the AI governance framework before its adoption and
is responsible for overseeing that compliance with all relevant
regulatory frameworks for AI has been effectively arranged.
The Technology Committee will also be updated to monitor and
stay informed on the progress and challenges of using AI, both
at a strategic and operational level. The Technology Committee
reports to the Board on the AI governance at Nokia and on AI
related topics on a regular basis.
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Key areas of focus for the Board’s and its Committees’ activities in 2024
The table below sets out a high-level overview of the key areas of focus for the Board’s and its Committees’ activities during the year. The Board also established a new Strategy Committee in April
2024. The Strategy Committee held seven meetings during the year 2024 to discuss various strategic initiatives related to developing Nokia’s corporate and business strategies.
January
February/March
April
May
June/July
September/October
November/December
Board
– Business and financial reviews
– Q4 and 2023 financials
– Strategy execution update
– Annual General Meeting
(AGM) proposals, including.
profit distribution
– Annual Policy and Charter
review
– Board evaluation
– Review of CEO’s performance,
remuneration and targets
– Annual report and 20-F
– Remuneration Report
2023
– AGM and appointing
Board Chair, Vice Chair
and Committee members
– Business and financial
reviews
– Strategy execution
update
– Q1 financials
– Business and financial
reviews
– Strategy execution update
– Geopolitical update
– Macroeconomics update
– Product and customer
security update
– Shareholder activism
preparedness update
– Litigation and compliance
update
– Business and financial
reviews
– Q2 financials
– Strategy execution
update
– Annual sustainability
review
– Annual strategy meeting
– Business and financial reviews
– Geopolitical update
– Innovation framework
– People update
– Q3 financials
– Business and financial
reviews
– Long-range forecast and
annual target setting
– Key risks review
– Investors’ feedback on
governance, remuneration
and sustainability
– Digitalization and security
update
– Geopolitical update
Corporate
Governance
and
Nomination
Committee
– AGM proposals on Board
composition and
remuneration
– Independence review
– Corporate governance
statement
– Committee compositions
– Annual Clock and
discussion on Committee
work
– Future Board
composition
– Future Board composition
– Management succession
planning
– Corporate governance
developments in regulation
– Future Board composition
– Board evaluation approach
– Management succession
planning
– Board remuneration review
and benchmarking
– Annual assessment of
director commitments
– Future Board composition
– Annual Charter review
Personnel
Committee
– Incentive achievements for
2023
– CEO and GLT performance
– Incentive targets and
objectives for 2024
– Long-term Incentive Plan
(LTI) grant proposal for 2024
– Remuneration Report 2023
– AGM shareholder
feedback
– GLT remuneration
– Culture update
– Succession planning
– Remuneration Policy 2025
– LTI performance update
– Human capital risk review,
including physical safety
– Committee adviser’s
market and benchmarking
update
– Succession planning
– Incentive Compensation
Clawback Policy
– Independent adviser review
– LTI design for 2025
– Remuneration Policy 2025
including shareholder
consultation
– Workforce demographics
– LTI budget for 2025
– 2025 incentive targets
– Investor feedback
– Planning of Remuneration
Report for 2024
– Succession planning
– Executive shareholding
assessment
– Annual Charter review
Audit
Committee
– Q4 and 2023 financials
– Auditor reporting
– Ethics and compliance,
internal audit, treasury and
internal controls updates
– AGM proposals to the Board
– Information and service
security update
– Annual Charter and Policy
review
– Annual report and 20-F
for 2023, including
sustainability reporting
– Auditor reporting
– Internal controls update
– Double materiality
assessment
– Q1 financials
– Auditor reporting
– Ethics and compliance,
internal audit and
internal controls updates
– Tax update
– Treasury update
– Conflict Minerals Report
– Q2 financials
– Auditor reporting
– Ethics and compliance,
internal audit and internal
controls updates
– Q3 financials
– Auditor reporting
– Ethics and compliance, internal
audit and internal controls
updates
– ESG disclosure and reporting
developments, processes and
controls
– Information and service
security updates
– Finance IT and digitalization
update
– Treasury update
– Pensions update
– Audit, internal audit and
internal controls updates
– Privacy and cybersecurity
update
– Annual Charter and Policy
review
Technology
Committee
– Updates on innovation
and technology trends
– Review of strategic
technology initiatives
– Updates on innovation
and technology trends
– Review of strategic
technology initiatives
– Sustainability technology
strategy
– Updates on innovation and
technology trends
– Review of strategic technology
initiatives
– Product and customer security
– Updates on innovation and
technology trends including
AI
– Review of strategic
technology initiatives
– Product and customer
security and AI updates
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Nokia in 2024
Board evaluation
In line with our Corporate Governance Guidelines, the Board
conducts a comprehensive annual performance evaluation,
which also includes evaluation of the Board Committees’
work, the Board and Committee Chairs and individual Board
members. The Board evaluation is conducted as a self-
evaluation, typically with a detailed questionnaire, while an
external evaluator is periodically engaged. Feedback is also
requested from selected members of management as part of
the Board evaluation process. The questions aim to measure
and elicit feedback on the processes, structure, accountability,
transparency, and effectiveness of the Board and to gain an
overview of the issues that are areas of excellence, areas where
the Board thinks greater focus is warranted and determining
areas where the performance could be enhanced.
Each year, the results of the evaluation are discussed and
analyzed by the entire Board and improvement actions are
agreed based on such discussions. In 2024, the evaluation
process was carried out as a thorough self-evaluation for
a second consecutive year by using an external evaluation
platform that included both numeric assessments and the
possibility to provide more detailed written comments.
The questionnaire comprised areas such as Nokia purpose
and strategy, Board agenda and meetings, and Board
composition and dynamics, as well as information,
reporting and risk management.
Meetings of the Board of Directors
The Board of Directors constitutes a quorum if more than half
of its members are present. The Board held 20 meetings
excluding Committee meetings during 2024. In total 12 (60%)
of these meetings were regular meetings in person or by video
connection. The other eight meetings were held in writing.
Board meeting attendance
Board and Committee meeting
attendance(1)
Member
Meetings
%
Meetings
%
Sari Baldauf (Chair)
20/20
100 %
38/38
100 %
Søren Skou (Vice Chair)
19/20
95 %
31/33
94 %
Timo Ahopelto
18/20
90 %
28/30
94 %
Elizabeth Crain
20/20
100 %
34/34
100 %
Thomas Dannenfeldt
20/20
100 %
37/38
97 %
Lisa Hook
20/20
100 %
37/37
100 %
Jeanette Horan (until 3 April 2024)
3/4
75 %
5/7
71 %
Mike McNamara (as of 3 April 2024)
17/17
100 %
24/24
100 %
Thomas Saueressig
20/20
100 %
24/24
100 %
Carla Smits-Nusteling
17/20
85 %
28/31
90 %
Kai Öistämö
20/20
100 %
29/29
100 %
Average attendance (%)
95 %
95 %
Directors meet without management in connection with each
regularly scheduled meeting. According to Board practices,
meetings without management present are only attended by
non-executive directors. These meetings are chaired by the
non-executive Chair of the Board. In cases where the non-
executive Chair of the Board is unable to chair these meetings,
the non-executive Vice Chair of the Board chairs the meeting.
Additionally, the independent directors would meet separately
at least once annually. In 2024, all members of the Board were
non-executive and determined to be independent from Nokia
and significant shareholders under the Finnish Corporate
Governance Code and the rules of the NYSE.
Committees of the Board of Directors
In 2024, the Board of Directors established a new Strategy
Committee and therefore had five Committees that assisted
the Board in its duties pursuant to their respective Committee
charters. The Board may also establish new or ad hoc
committees for detailed reviews or consideration of particular
topics to be proposed for the approval of the Board. Any
director who so wishes may attend, as a non-voting observer,
meetings of Committees of which they are not members.
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Nokia in 2024
Directors’ attendance at the Board and Committee meetings in 2024 is set forth in the table below:
(1)
Any director who so wishes may attend, as a non-voting observer, meetings of committees of which they are not members. Figures exclude directors attending committee
meetings as non-voting observers.
The Audit Committee
The following table sets forth the members of the Audit
Committee and their meeting attendance in 2024:
Attendance
Member
Meetings
%
Carla Smits-Nusteling (Chair)
6/6
100 %
Timo Ahopelto (until 3 April 2024)
2/2
100 %
Elizabeth Crain (until 3 April 2024)
2/2
100 %
Thomas Dannenfeldt
6/6
100 %
Lisa Hook (as of 3 April 2024)
4/4
100 %
Jeanette Horan (until 3 April 2024)
2/2
100 %
Mike McNamara (as of 3 April 2024)
4/4
100 %
Average attendance (%)
100 %
The Committee consists of a minimum of three members of
the Board who meet all applicable independence, financial
literacy and other requirements as stipulated by Finnish law,
the Finnish Corporate Governance Code and the rules of the
NYSE. As of 3 April 2024, the Audit Committee has consisted of
the following four members of the Board: Carla Smits-Nusteling
(Chair), Thomas Dannenfeldt, Lisa Hook and Mike McNamara.
The Committee is responsible for assisting the Board in the
oversight of:
■
the quality and integrity of the Company’s financial
statements, related disclosures and sustainability reporting;
■
the statutory audit of the Company’s financial statements,
related disclosures and sustainability reporting;
■
the qualifications and independence of the external auditor
and the sustainability reporting assurer;
■
the performance of the external auditor and the assurer
subject to the requirements of Finnish law;
■
the performance of the Company’s internal controls,
risk management and the assurance function;
■
the performance of the internal audit function;
■
the Company’s compliance with legal and regulatory
requirements, including the performance of its ethics
and compliance program;
■
the monitoring and assessment of any related party
transactions;
■
the pension liabilities and taxation of the Company; and
■
the processes and management related to the cybersecurity
of the Company, including information and services security.
In discharging its oversight role, the Audit Committee has full
access to all Company books, records, facilities and personnel.
The Audit Committee also maintains procedures for the
receipt, retention and treatment of complaints received by
Nokia regarding accounting, internal controls, auditing or
sustainability reporting matters and for the confidential,
anonymous submission by our employees of concerns relating
to accounting, auditing or sustainability reporting assurance
matters. Nokia’s disclosure controls and procedures, which
are reviewed by the Audit Committee and approved by the
President and CEO and the Chief Financial Officer, as well as
the internal controls over financial reporting, are designed
to provide reasonable assurance regarding the quality
and integrity of Nokia’s financial statements and related
disclosures. For further information on internal control over
financial reporting, refer to the section “Risk management,
internal control and internal audit functions at Nokia––
Description of internal control procedures in relation to the
financial reporting process”.
Under the Finnish Companies Act, an external auditor and a
sustainability reporting assurer are elected by a simple majority
vote of the shareholders at the Annual General Meeting for one
year at a time. The Audit Committee prepares the proposal to
the shareholders for the election of the nominees, upon its
evaluation of the qualifications and independence of the
external auditor and the sustainability reporting assurer.
Under Finnish law, the fees of the external auditor and of
the sustainability reporting assurer are approved by the
shareholders by a simple majority vote at the Annual General
Meeting. The Committee prepares the proposals to the
shareholders in respect of the fees of the external auditor and
the sustainability reporting assurer, and approves their annual
fees under the guidance given by the Annual General Meeting.
For information about the fees paid to Nokia’s external auditor
and sustainability reporting assurer, Deloitte Oy, during 2024
refer to the section “Auditor fees and services”.
The Board has determined all current Committee members
be ‘financially literate’ satisfying the applicable financial-
sophistication requirement by the New York Stock Exchange.
In addition, three Committee members, Carla Smits-Nusteling,
Thomas Dannenfeldt and Lisa Hook, are determined to be
‘audit committee financial experts’ as defined in the
requirements of Item 16A of the Annual Report on Form 20-F
filed with the U.S. Securities and Exchange Commission (SEC).
Carla Smits-Nusteling and each of the other members of the
Audit Committee are “independent directors” as defined by
Finnish law, the Finnish Corporate Governance Code and in
Section 303A.02 of the NYSE Listed Company Manual.
The Audit Committee meets a minimum of four times a year.
The Committee meets separately with the representatives of
Nokia’s management, heads of the internal audit, and ethics
and compliance functions, and the external auditor in
connection with each regularly scheduled meeting. The head of
the internal audit function has, at all times, direct access to the
Audit Committee, without the involvement of management.
Audit Committee pre-approval policies and procedures
The Audit Committee of the Board is responsible, among other
matters, for oversight of the external auditor’s independence,
subject to the requirements of applicable legislation. The
Audit Committee has adopted a policy regarding an approval
procedure of audit services performed by the external auditors
of the Nokia Group and permissible non-audit services
performed by the principal external auditor of the Nokia Group
(the “Pre-approval Policy”).
Under the Pre-approval Policy, proposed services either:
(i) may be pre-approved by the Audit Committee in accordance
with certain service categories described in the Pre-approval
Policy (general pre-approval); or (ii) require the specific
pre-approval of the Audit Committee (specific pre-approval).
The Pre-approval Policy sets out the audit, audit-related, tax
and other services that have received the general pre-approval
of the Audit Committee. All other audit, audit-related (including
services related to internal controls and significant mergers
and acquisitions projects), tax and other services are subject
to specific pre-approval by the Audit Committee. All service
requests concerning generally pre-approved services are
submitted to an appointed Audit Committee delegate within
management, who determines whether the services are within
the generally pre-approved services. The Pre-approval Policy is
subject to annual review by the Audit Committee.
The Audit Committee establishes budgeted fee levels annually
for each of the categories of audit and non-audit services that
are pre-approved under the Pre-approval Policy, namely, audit,
audit-related, tax and other services. At each regular meeting
of the Audit Committee, the auditor provides a report in order
for the Audit Committee to review the services that the auditor
is providing, as well as the cost of those services.
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The Corporate Governance and Nomination Committee
The following table sets forth the members of the Corporate
Governance and Nomination Committee and their meeting
attendance in 2024:
Attendance
Member
Meetings
%
Søren Skou (Chair)
5/5
100 %
Sari Baldauf
5/5
100 %
Lisa Hook
5/5
100 %
Carla Smits-Nusteling
5/5
100 %
Kai Öistämö
5/5
100 %
Average attendance (%)
100 %
The Committee consists of three to five members of the
Board who meet all applicable independence requirements as
stipulated by Finnish law, the Finnish Corporate Governance
Code and the rules of the NYSE. As of 3 April 2024, the
Corporate Governance and Nomination Committee has
consisted of the following five members of the Board: Søren
Skou (Chair), Sari Baldauf, Lisa Hook, Carla Smits-Nusteling
and Kai Öistämö.
The Committee fulfills its responsibilities by:
■
actively identifying individuals qualified to be elected
members of the Board, as well as considering and
evaluating the appropriate level and structure of director
remuneration;
■
preparing and evaluating the principles regarding Board
diversity;
■
preparing proposals to the shareholders on the director
nominees for election at the general meetings, as well as
director remuneration;
■
monitoring and assessing the directors’ current and planned
time commitments outside the Nokia Board and their
attendance at Nokia Board and Committee meetings;
■
monitoring significant developments in the law and practice
of corporate governance, including the sustainability-
related governance trends and the directors’ duties and
responsibilities;
■
assisting the Board and each Committee of the Board
in its annual performance evaluation process, including
establishing criteria to be applied in connection with
such evaluations;
■
developing and administering Nokia’s Corporate
Governance Guidelines and giving recommendations
regarding them to the Board; and
■
reviewing Nokia’s disclosure in the corporate governance
statement.
The Committee has the power and practice to appoint
a recruitment firm to identify appropriate new director
candidates.
The Personnel Committee
The following table sets forth the members of the Personnel
Committee and their meeting attendance in 2024:
Attendance
Member
Meetings
%
Thomas Dannenfeldt (Chair)
5/5
100 %
Timo Ahopelto (as of 3 April 2024)
4/4
100 %
Sari Baldauf
5/5
100 %
Elizabeth Crain (as of 3 April 2024)
5/5
100 %
Lisa Hook (until 3 April 2024)
1/1
100 %
Søren Skou (until 3 April 2024)
1/1
100 %
Average attendance (%)
100 %
The Committee consists of a minimum of three members of
the Board who meet all applicable independence requirements
as stipulated by Finnish law, the Finnish Corporate Governance
Code and the rules of the NYSE. As of 3 April 2024, the
Personnel Committee has consisted of the following four
members of the Board: Thomas Dannenfeldt (Chair),
Timo Ahopelto, Sari Baldauf and Elizabeth Crain.
The Committee has overall responsibility for evaluating,
resolving and making recommendations to the Board
regarding:
■
preparing the Remuneration Policy and the Remuneration
Report;
■
compensation and terms of employment of the Company’s
senior management;
■
human capital management;
■
all equity-based plans;
■
incentive compensation plans, policies and programs
of the Company affecting executives; and
■
possible other significant incentive plans.
The Committee is responsible for preparing the Remuneration
Policy, including Nokia’s compensation philosophy and
principles and ensuring that the Company’s compensation
programs are performance-based, designed to contribute to
long-term shareholder value creation in line with shareholders’
interests, properly motivate management and are aligned
with the Remuneration Policy, as well as supporting overall
corporate strategies.
The Committee also oversees human capital management
and periodically reviews the personnel policies and practices
of Nokia related to human capital management and social
responsibilities relating to its employees, including Company
culture, physical safety, employee wellbeing, morale, diversity,
equity and inclusion, talent management and development,
succession planning, resourcing, recruiting, attrition,
retention and employee engagement.
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The Strategy Committee
The following table sets forth the members of the Strategy
Committee and their meeting attendance in 2024:
Attendance
Member
Meetings
%
Elizabeth Crain (Chair)
7/7
100 %
Sari Baldauf
7/7
100 %
Thomas Dannenfeldt
6/7
86 %
Lisa Hook
7/7
100 %
Søren Skou
6/7
86 %
Average attendance (%)
94 %
The Committee consists of a minimum of three members of
the Board who meet all applicable independence requirements
as stipulated by Finnish law, the Finnish Corporate Governance
Code and the rules of the NYSE. As of 3 April 2024, the
Strategy Committee has consisted of the following five
members of the Board: Elizabeth Crain (Chair), Sari Baldauf,
Thomas Dannenfeldt, Lisa Hook and Søren Skou.
The Committee is established by the Board primarily for the
purpose of assisting the Board with respect to various strategic
initiatives related to developing Nokia’s corporate and business
strategies and capturing the strategic opportunities identified
under them.
The Committee’s duties may include:
■
overseeing the preparation of strategies related to
strategic initiatives;
■
reviewing the prospective alternatives for the strategic
initiatives identified by management;
■
acting as a preparatory body for assessing the specific
strategic initiatives requiring the Board’s decision;
■
overseeing the implementation of the strategic initiatives;
and
■
evaluating the outcomes of the strategic initiatives,
focusing on their implementation, financial results and
long-term success.
The Technology Committee
The following table sets forth the members of the Technology
Committee and their meeting attendance in 2024:
Attendance
Member
Meetings
%
Kai Öistämö (Chair)
4/4
100 %
Timo Ahopelto
4/4
100 %
Sari Baldauf (until 3 April 2024)
1/1
100 %
Jeanette Horan (until 3 April 2024)
0/1
0 %
Mike McNamara (as of 3 April 2024)
3/3
100 %
Thomas Saueressig
4/4
100 %
Average attendance (%)
83 %
The Committee consists of a minimum of three members of
the Board who meet applicable independence requirements
as stipulated by Finnish law, the Finnish Corporate Governance
Code and the rules of the NYSE and have such skills in
innovation, technology and science matters as the Board
determines adequate from time to time. As of 3 April 2024,
the Technology Committee has consisted of the following four
members of the Board: Kai Öistämö (Chair), Timo Ahopelto,
Mike McNamara and Thomas Saueressig.
In its dialogue with and provision of feedback and advice to
the management, the Committee will periodically review:
■
the Company’s technological competitiveness and new
strategic technology initiatives as well as market trends,
considering both organic and inorganic options to retain
or attain competitiveness;
■
the Company’s approach to major technological
innovations;
■
key technology trends that may result in disruptive threats
or opportunities and the proposals on how to adequately
address them;
■
high-level risks and opportunities associated with the
Company’s Research and Development Programs;
■
embedding sustainability in the technology roadmaps; and
■
the processes and management related to the
cybersecurity of the Company, including product and
customer security.
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Nokia in 2024
Group Leadership Team and the President and CEO
The Group Leadership Team is responsible for the operative
management of Nokia. The Group Leadership Team is chaired
by the President and CEO. The President and CEO’s rights and
responsibilities include those allotted to the President under
Finnish law.
On 31 December 2024, the Group Leadership Team consisted
of 11 members, including the President and CEO, representing
six different nationalities. In total 18% of the Group Leadership
Team members were female.
In addition to biographical information of the Group Leadership
Team members, the table on the right sets forth the number
of shares held by the members as at 31 December 2024, a
total of 3 726 540 Nokia shares. These holdings represented
approximately 0.07% of our total shares and voting rights
excluding shares held by the Nokia Group. The number of
shares includes shares received as compensation as well as
shares acquired through other means. At 31 December 2024,
no American Depositary Shares (ADSs) were held by the Group
Leadership Team members. Stock options or other equity
awards that are deemed as being beneficially owned under
the applicable SEC rules are not included in the table.
Summary of changes in the Group Leadership Team in 2024
The following members stepped down from the Group
Leadership Team:
■
Amy Hanlon-Rodemich, Chief People Officer, as of
28 March 2024;
■
Ricky Corker, Chief Customer Experience Officer, as of
13 June 2024;
■
Jenni Lukander, President of Nokia Technologies, as of
18 October 2024; and
■
Melissa Schoeb; Chief Corporate Affairs Officer, as of
18 October 2024.
Further, on 10 February 2025 Nokia announced that the current
President and CEO Pekka Lundmark will step down on
31 March 2025.
The Group Leadership Team was complemented with four
new appointments:
■
Lorna Gibb, Chief People Officer, effective 13 June 2024;
■
Louise Fisk, Chief Communications Officer, effective
18 October 2024;
■
Patrik Hammarén, Acting President of Nokia Technologies,
effective 18 October 2024 (President of Nokia Technologies
as of 22 January 2025); and
■
Mikko Hautala, Chief Geopolitical and Government Relations
Officer, effective 1 November 2024.
Further, on 10 February 2025 Nokia announced Justin Hotard’s
appointment as President and CEO, effective 1 April 2025.
Name
Position
Gender
Year of birth
Nationality
On GLT since
Shares
Pekka Lundmark
President and CEO
Male
1963
Finnish
2020 1 573 826
Nishant Batra
Chief Strategy and Technology Officer
Male
1978
Indian
2021
335 869
Louise Fisk
Chief Communications Officer
Female
1976
British
2024
37 070
Lorna Gibb
Chief People Officer
Female
1976
British
2024
16 477
Federico Guillén
President of Network Infrastructure
Male
1963
Spanish
2016
480 262
Patrik Hammarén
Acting President of Nokia Technologies
Male
1982
Finnish
2024
21 955
Mikko Hautala
Chief Geopolitical and Government Relations
Officer
Male
1972
Finnish
2024
2 800
Esa Niinimäki
Chief Legal Officer
Male
1976
Finnish
2023
49 903
Raghav Sahgal
President of Cloud and Network Services
Male
1962
American
2020
618 318
Tommi Uitto
President of Mobile Networks
Male
1969
Finnish
2019
268 619
Marco Wirén
Chief Financial Officer
Male
1966
Finnish/Swedish
2020
321 441
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Nokia in 2024
Biographical details of the current members of the Nokia Group Leadership Team
Pekka Lundmark
Nishant Batra
Louise Fisk
Lorna Gibb
b. 1963
b. 1978
b. 1976
b. 1976
President and Chief Executive Officer
(CEO) since 2020. Rejoined Nokia in 2020.
Master’s degree in Information Systems,
Department of Technical Physics, Helsinki
University of Technology, Finland.
President and CEO, Fortum Corporation
2015–2020. President and CEO,
Konecranes Plc 2005–2015 and Group
Executive Vice President 2004–2005.
President and CEO, Hackman Oyj 2002–
2004. Managing Partner, Startupfactory
2000–2002. Various executive positions
at Nokia 1990–2000.
Member of the Board, Research Institute
of the Finnish Economy (ETLA) and
Finnish Business and Policy Forum (EVA).
International Member of the Royal
Swedish Academy of Engineering Sciences
(IVA). Member of the European Round
Table for Industry. Member of The
Business Council (the United States).
Commissioner, Broadband Commission
for Sustainable Development 2020–2024.
Chairman of the Board, Confederation
of Finnish Industries 2019–2020.
Member of the Board, East Office of
Finnish Industries 2009–2020. Chairman
of the Board, Finnish Energy 2016–2018.
Chief Strategy and Technology Officer
(CSTO). Group Leadership Team member
since 2021. Joined Nokia in 2021.
MBA from INSEAD. Master’s degrees in
Telecommunications and in Computer
Science, Southern Methodist University,
Dallas, the United States. Bachelor’s
degree in Computer Applications,
Devi Ahilya University, Indore, ͏
Madhya Pradesh͏, India.
Executive Vice President and Chief
Technology Officer, Veoneer Inc. 2018–
2021. Several senior positions at Ericsson
2006–2018, in the United States, Sweden
and India.
Member of the Board of Directors, KPIT
Technologies Ltd. Chair of the Board of
ReOrbit Oy. Strategic Advisor, SoloPulse.
Member of the Board of Directors of
Sensys Gatso Group 2020–2022.
Chief Communications Officer (CCO).
Group Leadership Team member since
2024. Joined Nokia in 2020.
Advanced executive leadership
development, DUKE University. Advanced
global leadership, INSEAD business
school. Post graduate diploma in PR &
Journalism, University of Wales, College
of Cardiff, Wales, United Kingdom. BA
Hons in Communication, University of
Wales, College of Cardiff, Wales, United
Kingdom.
Vice President, Corporate Affairs
Programs & Corporate Communications,
Nokia 2020–2024. Global leadership
team, Communications and Marketing
Director, BAE Systems Applied
Intelligence 2015–2019. Head of Global
Communications, Investor Relations and
Marketing, Innovation Group 2012–2015.
Global PR Director & Deputy
Communications Director, Logica 2006–
2012. Partner & Associate Director, LEWIS
Communications 1999–2006.
Trustee of the Williams Syndrome
Foundation.
Chief People Officer (CPO). Group
Leadership Team member since 2024.
Joined Nokia in 2020.
Diploma in Legal Practice, University of
Edinburgh, Scotland. Bachelor of Laws,
University of Glasgow, Scotland
(combined with Master of Laws
programme in the University of North
Carolina, the United States).
Interim Chief People Officer, Nokia
March–June 2024. Vice President, Labour
& Employment, Nokia 2020–2024. Global
Human Resources Director, Skyscanner
2017–2020. People Director, easyJet
2013–2017. Senior HR Business Partner,
Direct Line Group (Royal Bank of Scotland
Group) 2012–2013. Various employment
legal/HR transformation consultancy
roles in 2002–2012.
Young Enterprise UK: Board Trustee – HR,
Remuneration and Nomination
Committee.
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Biographical details of the current members of the Nokia Group Leadership Team continued
Federico Guillén
Patrik Hammarén
Mikko Hautala
Esa Niinimäki
b. 1963
b. 1982
b. 1972
b. 1976
President of Network Infrastructure.
Group Leadership Team member since
2016. Joined Nokia in 2016.
Degree in Telecommunications
Engineering, ETSIT at Universidad
Politécnica de Madrid, Spain. Master’s
degree in Switching & Communication
Architectures, ETSIT at Universidad
Politécnica de Madrid, Spain. Master’s
Degree in International Management,
ESC Lyon and Alcatel, France.
President of Customer Operations,
Europe, Middle East & Africa and Asia
Pacific, Nokia 2018–2020. President of
Fixed Networks, Nokia 2016–2018.
President of Fixed Networks, Alcatel-
Lucent 2013–2016. President and Chief
Senior Officer of Alcatel-Lucent Spain and
Global Account Manager Telefónica,
Alcatel-Lucent 2009–2013. Vice President
Sales of Vertical Market Sales in Western
Europe, Alcatel-Lucent 2009. Head of
Regional Support Center, Fixed Access
Division for South Europe, Middle East &
Africa, India and Caribbean & Latin
America, Alcatel-Lucent 2007–2009.
President and Chief Senior Officer, Alcatel
Mexico and Global Account Manager,
Telmex 2003–2007. Various R&D,
portfolio and sales management
positions with Telettra in Spain,
and with Alcatel in Spain, Belgium
and the United States 1989–2003.
Acting President of Nokia Technologies
(President of Nokia Technologies as of 22
January 2025). Group Leadership Team
member since 2024. Joined Nokia in
2007.
Master of Law, University of Helsinki,
Finland. Master of Science (Information
Networks), Aalto University, Finland.
Chief Licensing Officer Wireless
Technologies, Nokia Technologies 2024–
2024. Vice President, Head of IoT
Licensing Program, Nokia Technologies
2022–2024. Head of Patent Licensing
Greater China, Nokia Technologies 2020–
2022. Director, Patent Licensing, Nokia
Technologies 2018–2020. Manager,
Patent Licensing, Nokia Technologies
2014–2018. Senior Legal Counsel, HERE,
Nokia 2013–2014. Legal Counsel, HERE
Nokia 2013–2013. Legal Counsel, Central
and East Europe, Nokia 2012–2013. Legal
Counsel, Central Europe, Nokia 2011–
2012. Legal Counsel, MeeGo & Open
Source, Nokia 2007–2011.
Chief Geopolitical and Government
Relations Officer. Group Leadership Team
member since 2024. Joined Nokia in
2024.
Master of Social Sciences (Political
history), University of Helsinki, Finland.
Master of Philosophy (Slavic languages),
University of Helsinki, Finland.
Ambassador, Head of Mission, Embassy
of Finland, Washington DC 2020–2024.
Ambassador, Head of Mission, Embassy
of Finland, Moscow 2016–2020. Foreign
Policy Adviser to the President, Office of
the President of the Republic of Finland,
Helsinki 2012–2016. Minister, Deputy
Head of Mission, Embassy of Finland,
Moscow 2011–2012. Diplomatic Adviser
to the Minister of Foreign Affairs, Ministry
for Foreign Affairs, Helsinki 2007–2011.
First Secretary, Permanent
Representation of Finland to the EU,
Brussels 2002–2007. Attaché, Ministry for
Foreign Affairs, Helsinki 2001–2002.
Attaché, Embassy of Finland, Kyiv 1999–
2001. Visa Officer, Embassy of Finland,
Kyiv 1998–1999.
Board Member Support for Finnish
Society (SYT) foundation. Chairman of the
Council, The John Morton Center for
North American Studies, University of
Turku, Finland.
Chief Legal Officer (CLO) and Board
Secretary. Group Leadership Team
member since 2023. Joined Nokia in 2007.
Master of Laws, Fordham University,
School of Law, New York, the United
States. Master of Law, University of
Helsinki, Finland.
Interim Chief Legal Officer, Nokia 2022–
2023. Deputy Chief Legal Officer, Vice
President, Corporate Legal and Board
Secretary, Nokia 2018–2023. General
Counsel, Global Services, Nokia 2015–
2018. Head of Corporate Legal, Nokia
Solutions and Networks and Head of
Finance & Labor Legal, Nokia 2013–2015.
Senior Legal Counsel, Legal and IP, India,
Middle East and Africa, Nokia 2012–2013.
(Senior) Legal Counsel, Corporate Legal,
Nokia 2007–2011. Group Legal Counsel,
Metsä Group 2005–2007. Associate
Lawyer, White & Case LLP 2003–2005.
Chair of Legal Affairs Committee of the
Confederation of Finnish Industries.
Member of the Market Practice Board of
Securities Market Association and the
Policy Committee of the Directors’
Institute Finland.
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Biographical details of the current members of the Nokia Group Leadership Team continued
Raghav Sahgal
Tommi Uitto
Marco Wirén
b. 1962
b. 1969
b. 1966
President of Cloud and Network Services.
Group Leadership Team member since
2020. Joined Nokia in 2017.
Master of Science in Computer Systems
Management, University of Maryland, the
United States. Bachelor of Science in
Computer Engineering, Tulane University,
New Orleans, the United States.
Executive Business Certificate in General
Management, Harvard University,
the United States.
President of Nokia Enterprise 2020.
Senior Vice President, Nokia Software
2017–2020. President, NICE Ltd. Asia
Pacific and the Middle East 2010–2017.
Advisory Board Member, Orga Systems
2010–2014. Vice President,
Communications Business Unit, Asia
Pacific & Japan, Oracle 2008–2010. Chief
Business Officer, Comverse 2005–2006.
Executive Vice President, Asia Pacific,
CSG 2002–2005. Vice President,
Software Products Group Asia Pacific,
Lucent Technologies 2000–2002.
President of Mobile Networks. Group
Leadership Team member since 2019.
Joined Nokia in 1996.
Master’s degree in industrial
management, Helsinki University of
Technology, Finland. Master’s degree
in operations management, Michigan
Technological University, the United States.
Senior Vice President (VP), Global Product
Sales, Mobile Networks, Nokia 2016–
2018. Senior VP, Global Mobile
Broadband Sales, Customer Operations,
Nokia Networks 2015–2016. Senior VP,
West Europe, Customer Operations, Nokia
Networks 2013–2015. Head of Radio
Cluster (Senior VP), Mobile Broadband,
Nokia Siemens Networks (NSN) 2012–
2013. Head of Global LTE Radio Access
Business Line (VP) and Quality, Mobile
Broadband NSN, 2011–2012. Head of
Product Management, Network Systems,
NSN 2010. Head of Product Management,
Radio Access, NSN 2009. Head of
WCDMA/HSPA and Radio Platforms
Product Management, NSN 2008. Head of
WCDMA/HSPA Product Line Management,
NSN 2007. General Manager, Radio
Controller Product Management Nokia
Networks, 2005–2007. Various other
positions at Nokia since 1996.
Member of the Board of Directors at F-
Secure Oyj. Member of the Board of
Technology Industries of Finland.
Chief Financial Officer (CFO). Group
Leadership Team member since 2020.
Joined Nokia in 2020.
Master’s degree in Business
Administration, University of Uppsala,
Sweden. Studies in management and
strategic leadership, including at Duke
Business School, Durham, the United
States; IMD, Switzerland and Stockholm
School of Economics, Sweden.
President, Wärtsilä Energy and Executive
Vice President, Wärtsilä Group 2018–
2020. Executive Vice President and CFO,
Wärtsilä Group 2013–2018. Executive
Vice President and CFO, SSAB Group
2008–2013. Vice President, Business
Control, SSAB Group 2007–2008. CFO,
Eltel Networks 2006–2007. Vice President
of Business Development, Eltel Networks
2004–2005. Head of Service Division,
Eltel Networks 2003–2004. Vice
President, Corporate Development, Eltel
Networks 2002–2003. Vice President,
Strategy & Business Development, NCC
Group 1999–2002. Head of Strategic
Planning, NCC Group 1998–1999. Group
Controller, NCC Group 1996–1998.
Vice Chair of the Board of Directors
of Neste Corporation 2019–2023 and
member of the Board 2015–2023.
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Nokia in 2024
Risk management, internal control and
internal audit functions at Nokia
Risk management principles
We have a systematic and structured approach to risk
management. It covers strategic, operational, financial,
compliance and reputational risks and opportunities, including
potentially material impacts to people and the environment.
The principles documented in the Nokia Enterprise Risk
Management (ERM) Policy, which is approved by the Audit
Committee of the Board, require risk management and its
elements to be integrated into key processes:
■
ERM is an integral part of Nokia’s objective setting and
key decision making
Key risks and opportunities are primarily identified against
business targets either in business operations or as an
integral part of strategy and financial planning. Those
are monitored as part of the management and business
performance information flow. Our overall risk management
concept is based on managing the key risks that would
prevent us from meeting our objectives, rather than
focusing on eliminating all risks.
■
ERM is an integral part of Nokia’s corporate governance
ERM accountability runs through the Company and is
embedded into Nokia corporate governance. The Board of
Directors and the Group Leadership Team are committed to
effective risk management as a core management capability
that supports Nokia in achieving strategic, tactical and
operational business objectives and in managing business
performance.
■
Risk ownership follows business ownership
Nokia ERM is aligned to the overall Nokia governance model,
where Nokia’s businesses are accountable for meeting
approved plans and targets as agreed within Nokia.
Each business or function head is an owner of the risks in
their respective responsibility area and is responsible for
identifying and managing key risks and capturing opportunities.
■
ERM is an area of continuous improvement
ERM is an area of continuous improvement for Nokia.
The Chief Financial Officer, who also functions as the
Chief Risk Officer, provides guidance and sponsors the
development of ERM practices and ERM improvement.
In addition to the principles defined in the Nokia Enterprise Risk
Management Policy, other key corporate level policies reflect
the implementation of specific aspects of risk management.
Cybersecurity Risk Management
Nokia, along with its partners and contracted third parties, faces
cybersecurity threats like ransomware, viruses, worms and
other malicious software, unauthorized modifications, or illegal
activities that may cause potential security risks and other harm
to Nokia, its customers or consumers and other end-users
of Nokia’s products and services. The dynamic nature of IT
technologies makes it challenging to fully mitigate these risks.
The cybersecurity incidents may lead to lengthy and costly
incident response, remediation of the attack affecting business
continuity, or breach and legal proceedings and fines imposed
on us, as well as adverse effects to our reputation and brand
value. Despite ongoing investments, preventing, detecting and
containing cyber-attacks remain challenging. Additionally, the
cost and operational consequences of implementing further
information system protection measures, especially if
prescribed by national authorities, could be significant. We may
not be successful in implementing such measures in due time,
which could lead to business disruptions. The regulatory
framework around responding to and disclosing such events is
in flux. We may not be able to comply with the regulations that
must be implemented or such compliance may negatively
impact our ability to deal with the underlying event.
We face a number of cybersecurity risks within our business.
Although such risks have not materially affected us thus far,
including our business strategy, results of operations, or financial
condition, we have from time to time experienced threats to
and breaches of our data and systems, including malware and
computer virus attacks. We continue to address these challenges,
but there is no guarantee against future attacks.
Nokia has well-established cybersecurity processes built into its
overall security risk management framework. This integration is
achieved through the implementation of a security program set
on various processes, such as cybersecurity risk management,
third-party security risk management, security incident
management and disaster recovery planning. In evaluation of
the effectiveness of our cybersecurity processes and their
alignment with the industry best practices, we have engaged
and may engage in the future with third party advisers
and consultants.
The Chief Security Officer, who has the authority to establish
and oversee the Nokia information security program, keeps
Nokia’s executive leadership informed on program outcomes
and highlights information security risks which may affect Nokia
business and customers. Nokia’s executive leadership provides
direction and support and has the responsibility to execute
the program within their own domains. Key principles are
communicated through the Nokia Information Security Policy,
applicable also to third parties and collaborators and supported
by topical Standard Operation Procedures and guidelines.
Nokia’s security ambition is reflected in the supplier selection
processes, contracts and supplier (re)assessments ensuring
effective security is in place in our supply chain and with our
third-party partners. We are dedicated to adhering to
applicable laws, regulations, contractual commitments, and
industry best practices, including but not limited to ISO 27001,
NIST SP 800 series, the Cloud Security Alliance Control Matrix,
and the Information Security Forum.
Nokia’s cybersecurity incidents are handled in the Security
Incident Management Process, which covers all phases of
incident response, including preparation, identification,
containment, eradication, recovery and post-incident analysis.
Each confirmed cybersecurity-related incident is assessed
against a classification scheme (impact on confidentiality,
integrity and availability of the related asset, urgency, and
priority of the security incident). Significant cybersecurity
incidents are elevated and managed by a cross-functional,
executive management-level team, which is responsible for
making the necessary decisions and prioritizing actions that can
minimize the impact of the security incident to Nokia and its
customers. Members from the CFO and Legal, Compliance &
Sustainability teams are responsible for determining the
materiality of the security incident and promptly informing the
Audit Committee of the Board. The Nokia management team
for assessing and managing cybersecurity threats includes
members with training and experience in security risk
management, security governance, cyber resilience, security
incident management, information technology, cybersecurity
legal and compliance requirements and disclosures. For an
overview of the training and experience of the members of the
Board and our assessment of their experience and skills related
to cybersecurity, please see “Main corporate governance
bodies of Nokia—Board of Directors”.
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Description of internal control procedures in relation
to the financial reporting process
Management is responsible for establishing and maintaining
adequate internal control over Nokia’s financial reporting. Our
internal control over financial reporting is designed to provide
reasonable assurance to management and the Board regarding
the reliability of financial reporting and the preparation and fair
presentation of published financial statements.
Management conducts a yearly assessment of Nokia’s internal
controls over financial reporting in accordance with the
Committee of Sponsoring Organizations framework (the “COSO
framework”, 2013) and the Control Objectives for Information
and Related Technology (COBIT) framework of internal controls.
The assessment is performed based on a top-down risk
assessment of our financial statements covering significant
accounts, processes and locations, corporate-level controls
and information systems’ general controls.
As part of its assessment, management has documented:
■
the corporate-level controls, which create the “tone from
the top” containing the Nokia values and Code of Conduct
and which provide discipline and structure to decision-
making processes and ways of working. Selected items
from our operational mode and governance principles are
separately documented as corporate-level controls;
■
the significant processes: (i) give a complete end-to-end
view of all financial processes; (ii) identify key control points;
(iii) identify involved organizations; (iv) ensure coverage for
important accounts and financial statement assertions;
and (v) enable internal control management within Nokia;
■
the control activities, which consist of policies and
procedures to ensure management’s directives are carried
out and the related documentation is stored according to
our document retention practices and local statutory
requirements; and
■
the information systems’ general controls to ensure that
sufficient IT general controls, including change management,
system development and computer operations, as well as
access and authorizations, are in place.
Further, management has also:
■
assessed the design of the controls in place aimed at
mitigating the financial reporting risks;
■
tested operating effectiveness of all key controls; and
■
evaluated all noted deficiencies in internal controls over
financial reporting in the interim and as of year end.
In 2024, Nokia has followed the procedures as described
above and has reported on the progress and assessments to
management and to the Audit Committee of the Board on a
quarterly basis.
Description of the organization of the internal
audit function
We have an internal audit function that examines and
evaluates the adequacy and effectiveness of our system of
internal control. Internal audit reports to the Audit Committee
of the Board. The head of the internal audit function has direct
access to the Audit Committee, without the involvement of
management. The internal audit staffing levels and annual
budget are approved by the Audit Committee. All authority
of the internal audit function is derived from the Board.
The internal audit aligns to the business by business group
and function.
Annually, a risk-based internal audit plan is developed taking
into account key business risks, emerging risks, external factors
and input from management.This plan is approved by the Audit
Committee. Audits are completed across business groups
and functions. The results of each audit are reported to
management identifying issues, financial impact, if any, and the
correcting actions to be completed. Quarterly, the internal
audit function communicates the progress of the internal audit
plan completion, including the results of the closed audits, to
the Audit Committee. Any changes to the risk environment
impacting the internal audit plan are presented to the Audit
Committee for review and approval on a quarterly basis.
Internal audit also works closely with Internal Controls and
Ethics and Compliance offices to review any financial and
compliance concerns brought to light from various channels
and, where relevant, works with Enterprise Risk Management
to ensure priority risk areas are reviewed through audits.
“Management conducts a yearly
assessment of Nokia’s internal
controls over financial reporting
in accordance with the Committee
of Sponsoring Organizations
framework (the “COSO framework”,
2013) and the Control Objectives
for Information and Related
Technology (COBIT) framework
of internal controls.”
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Nokia in 2024
Related party transactions
We determine and monitor related parties in accordance with
the International Accounting Standards (IAS 24, Related Party
Disclosures) and other applicable regulations including the
applicable U.S. securities laws. We maintain information on our
related parties, as well as monitor and assess related party
transactions. As a main principle, all transactions should be
conducted at arm’s-length and as part of the ordinary course
of business. In exceptional cases where these principles would
be deviated from, Nokia would set up a separate process
to determine the related parties in question and to seek
relevant approvals in accordance with internal guidelines
and applicable regulations.
Main procedures relating to insider
administration
Our insider administration is organized according to the
applicable European Union and Finnish laws and regulations
as well as applicable U.S. securities laws and regulations. In
addition, Nokia has adopted the Nokia Insider Trading Policy,
approved by the Board of Directors, which sets out Nokia-wide
rules and practices to ensure full compliance with applicable
rules and that inside information is recognized and treated
in an appropriate manner and with the highest integrity.
The Nokia Insider Trading Policy is applicable to all directors,
executives and employees of Nokia.
Persons discharging managerial responsibilities
Nokia has identified members of the Board of Directors
and the Group Leadership Team as persons discharging
managerial responsibilities who, along with persons closely
associated with them, are required to notify Nokia and the
Finnish Financial Supervisory Authority of their transactions
with Nokia’s financial instruments. Nokia publishes the
transaction notifications.
In addition, according to the Nokia Insider Trading Policy,
persons discharging managerial responsibilities are obligated
to clear a planned transaction in Nokia’s financial instruments
in advance with the person in charge of the insider
administration. It is also recommended that trading and other
transactions in Nokia’s financial instruments are carried out
in times when the information available to the market is as
complete as possible.
Closed window
Persons discharging managerial responsibilities are subject
to a closed window period of 30 calendar days preceding the
disclosure of Nokia’s quarterly or annual result announcements,
as well as the day of the disclosure. During the closed window
period, persons discharging managerial responsibilities are
prohibited from dealing in Nokia’s financial instruments.
Nokia has imposed this closed window period also on
separately designated financial reporting persons who are
recurrently involved with the preparation of Nokia’s quarterly
and annual results announcements. These persons are
separately notified of their status as designated financial
reporting persons.
Insider registers
Nokia does not maintain a permanent insider register. Insiders
are identified on a case-by-case basis for specific projects
and are notified of their insider status. Persons included in a
project-specific insider register are prohibited from dealing
in Nokia’s financial instruments until the project ends or is
made public.
Supervision
Our insider administration’s responsibilities include, among
other matters, internal communications related to insider
matters and trading restrictions, setting up and maintaining
our insider registers and arranging related trainings, as well as
organizing and overseeing compliance with the insider rules.
Violations of the Nokia Insider Trading Policy must be reported
to the head of Corporate Legal. Nokia employees may also use
channels stated in the Nokia Code of Conduct for reporting
incidents involving suspected violations of the Nokia Insider
Trading Policy.
Auditor fees and services
Deloitte Oy, based in Helsinki, Finland, served as our auditor and
our sustainability reporting assurer for the financial year ended
31 December 2024 and as our auditor for the financial year
ended 31 December 2023. The auditor and the sustainability
reporting assurer are elected annually by our shareholders at the
Annual General Meeting for the next financial year commencing
after the election. On an annual basis, the Audit Committee of
the Board prepares a proposal to the shareholders regarding the
appointment of the auditor and the sustainability reporting
assurer based upon its evaluation of the qualifications and
independence of the auditor and the sustainability reporting
assurer to be proposed for election.
The following table presents fees by type paid to Deloitte’s
network of firms for the years ended 31 December:
EURm
2024
2023
Audit fees(1)
18.5
20.2
Audit-related fees(2)
2.5
1.7
Tax fees(3)
0.2
0.4
All other fees(4)
0.1
0.3
Total
21.3
22.6
(1)
Audit fees consist of fees incurred for the annual audit of the Group’s consolidated
financial statements and the statutory financial statements of the Group’s subsidiaries.
(2)
Audit-related fees consist of fees billed for sustainability reporting assurance
approximately EUR 1.4 million as well as other assurance and related services that
are reasonably related to the performance of the audit or review of the Group’s
financial statements or that are traditionally performed by the independent auditor,
and include consultations concerning financial accounting and reporting standards;
advice and assistance in connection with local statutory accounting requirements;
due diligence related to mergers and acquisitions; and audit procedures in
connection with investigations in the pre-litigation phase and compliance programs.
They also include fees billed for other audit services, which are those services that
only the independent auditor can reasonably provide, and include the provision of
comfort letters and consents in connection with statutory and regulatory filings
and the review of documents filed with the SEC and other capital markets or local
financial reporting regulatory bodies.
(3)
Tax fees include fees billed for: (i) services related to tax compliance including
preparation and/or review of tax returns, preparation, review and/or filing of
various certificates and forms and consultation regarding tax returns and
assistance with revenue authority queries; compliance reviews, advice and
assistance on other indirect taxes; and transaction cost analysis; (ii) services related
to tax audits; (iii) services related to individual compliance (preparation of individual
tax returns and registrations for employees (non-executives), assistance with
applying for visas, residency, work permits and tax status for expatriates); (iv)
services related to technical guidance on tax matters; (v) services related to
transfer pricing advice and assistance with tax clearances; and (vi) tax consultation
and planning (advice on stock-based remuneration, local employer tax laws, social
security laws, employment laws and compensation programs and tax implications
on short-term international transfers).
(4)
Other fees include fees billed for Company establishments, liquidations, forensic
accounting, data security, other consulting services and reference materials
and services.
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Nokia in 2024
Remuneration
This section sets out our remuneration governance,
policies and how they have been implemented within
Nokia. It includes our Remuneration Report where
we disclose the remuneration of our Board members
and the President and CEO for 2024, which will be
presented to the Annual General Meeting (AGM) 2025
for an advisory vote.
Following 2024 shareholder vote on our Remuneration
Policy, where we received high level of support, we are
proposing some further amendments to the Policy, which
will be presented to the AGM 2025 for an advisory vote.
A summary of the updated Remuneration Policy is set out
in this section and the updated Policy in its entirety is
available on our website.
Other remuneration-related information provided alongside
the Remuneration Report and the Remuneration Policy is
not subject to a vote at the AGM 2025 but provides added
information on the remuneration policies applied within
Nokia as well as on the remuneration of the Group
Leadership Team members.
We report information applicable to executive remuneration
in accordance with Finnish regulatory requirements and
with requirements set by the US Securities and Exchange
Commission that are applicable to us.
Highlights
■
2024 continued to be a challenging year with ongoing market
volatility, but delivered solid achievements and good
operational performance, as we renew our business and
reposition for future growth opportunities.
■
As reported last year, at the beginning of 2024, the President
and CEO, Pekka Lundmark, received a base salary increase of
8.5% in recognition of his performance and to bring his base
salary close to market level.
■
Pekka Lundmark’s 2024 short-term incentive (STI) was
subject to a scorecard of Nokia operating profit, cash
release, health & safety and diversity objectives. Following
the year end, performance was assessed against the
predetermined targets (adjusted for M&A activities) and
resulted in an overall STI payout of 104% of target
opportunity for Pekka Lundmark. Further details on the
targets and performance assessment and outcomes are
provided in our Remuneration Report.
■
The long-term incentive (LTI) awards (performance shares)
granted to Pekka Lundmark and other GLT members in 2021
vested at 12% of target following the end of the
three-year performance period, as a result of the dividend
adjusted share price achievement of EUR 3.66. Further
details of the target and performance assessment are set
out in the Remuneration Report.
■
The Personnel Committee carried out another review of our
Remuneration Policy (Policy) during 2024 and decided to
propose a couple of further amendments to ensure our
Policy continues to support our future growth strategy, to
further align with market practice, to encourage longer-term
decision making for sustainable value creation, and to help
with retention. Shareholder feedback was taken into
consideration when finalizing the Policy.
■
The 2025 STI will continue to be subject to the same
performance metrics as used in 2024. However, two new
gender diversity metrics will be introduced for 2025
measuring women in leadership and women in workforce,
replacing the gender hiring metric used for 2024.
■
The 2025 metrics for the LTI (performance shares) for
Pekka Lundmark and the rest of the GLT will continue to be
subject to a scorecard of 50% relative TSR, 40% cumulative
reported Earnings Per Share (EPS) (adjusted for impairments
and M&A) and 10% carbon emission reduction (scope 1, 2
and 3).
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Remuneration
Nokia in 2024
Remuneration Report 2024
Letter from the Chair of the Personnel
Committee of the Board
“Dear Fellow Shareholder,
I am delighted to present our
Remuneration Report 2024
as the Chair of the Personnel
Committee of the Nokia Board.”
Our remuneration philosophy
At the core of Nokia’s philosophy lie three principles:
■
pay for performance and aligning the interests of
employees with shareholders;
■
ensure that remuneration programs and policies support
the delivery of the corporate strategy and create long-term
sustainable shareholder value; and
■
ensure that executive remuneration reflects the
contribution to achieving our ESG targets which support
long-term shareholder value creation.
Business context
2024 was a year of good strategic execution in a volatile
market to achieve our full-year guidance while pursuing growth
opportunities in our focus areas of data centers, private
wireless and industrial edge, and defense.
Challenging market conditions in the first half of 2024 led to
our full-year net sales declining, but we delivered a strong
finish to the year with improving net sales and excellent
profitability to achieve a full-year comparable operating
profit(1) of EUR 2.6 billion, at the mid-point of our guidance
of EUR 2.3 to 2.9 billion.
We delivered a strong cash performance throughout 2024,
ending with full-year free cash flow(1) of EUR 2.0 billion.
This means we have a strong balance sheet supporting
our business with net cash and interest-bearing financial
investments(1) of EUR 4.9 billion at the end of the year,
even after returning EUR 1.4 billion to shareholders through
dividends and share buybacks. As a result, the Board proposed
an increase in the dividend authorization proposal to
EUR 0.14 per share in respect of the financial year 2024.
Shareholder support and the updated Remuneration Policy
Our second Remuneration Policy (“Policy”) was approved by
shareholders at the 2024 AGM with over 90% votes in favor.
During 2024, we continued to monitor developments in
shareholder and voting agency guidance on remuneration
as well as overall market development. Following which, the
Personnel Committee of the Board (“Committee”) decided
to propose a couple of changes to the Policy to ensure our
Policy continues to support our future growth strategy, to
further align our arrangements with best practice and to
incentivize longer-term decision making for sustainable
shareholder value creation and to help with retention.
We consulted with our largest shareholders and several
other key stakeholders on some proposed amendments to
the Policy. The shareholders we engaged with were generally
supportive of the proposed amendments and made a few
helpful and constructive suggestions for the Committee
to consider. The feedback was taken into account as the
proposed Policy was finalized.
Remuneration of the President and CEO – base salary
and incentive opportunities
As reported last year, the President and CEO Pekka
Lundmark received a salary increase of 8.5% in January
2024. There was no increase to Pekka Lundmark’s short-
term incentive (STI) and long-term incentive (LTI)
opportunities during 2024.
For 2025, Pekka Lundmark’s base salary and STI opportunity
will remain unchanged. As announced on 10 February 2025,
Pekka Lundmark is stepping down as the President and CEO
effective 31 March 2025 but will work as an advisor to the
new CEO until the end of the year. As a result, he will not
receive LTI grant in 2025.
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(1) Non-IFRS measure. For the definition and reconciliation of non-IFRS measures
to the most directly comparable IFRS measure, refer to the “Alternative
performance measures” section.
STI performance outcome and payout for 2024
Pekka Lundmark’s 2024 STI was subject to a scorecard
of 60% Nokia operating profit, 20% cash release,
10% gender diversity and 10% health & safety (lost time
injury frequency rate).
The 2024 comparable operating profit(1) outcome of
EUR 2 619 million against the target of EUR 2 782 million
resulted in a payout of 83% of target for this element.
The cash release outcome of EUR 1 149 million against
the target of EUR -1 115 million resulted in a payout of
225% of target for this element.
The gender diversity metric (female percentage in external
hiring) achieved 28% for the full year, against the target
of 29%, which resulted in a payout of 25% of target for
this element.
The health & safety metric of lost time injury frequency rate
measures how often lost time injuries occur that directly
impacts Nokia employees during the year. This metric
achieved an outcome of 0.085 against the target of 0.089,
which resulted in a payout of 123% of target for this
element. However, taking account of the eight fatalities
within Nokia’s control during the year, the Personnel
Committee decided to exercise downward discretion to
reduce the payout by 50% for this element, which resulted
in a payout of 62% of target.
As a result, a total of 104% of target STI was payable to
Pekka Lundmark for the financial year 2024.
LTI performance and outcomes for 2021–2024
The 2021 LTI (performance shares) was subject to the
predetermined dividend adjusted share price targets
and a three-year performance period which ended in
January 2024. Based on the dividend adjusted share price
outcome of EUR 3.66, the award vested at 12% of target
for Pekka Lundmark and other GLT members who received
the grant in 2021.
STI and LTI performance conditions for 2025
During 2024, the Personnel Committee also undertook a review
of the performance metrics used for our LTI and STI and
decided to propose some changes for 2025 to ensure our
incentive plans continue to support the business strategy and
growth over the next three years. Our 2025 incentive plans for
the President and CEO and the rest of the GLT will follow the
structure set out below.
Delivering the next year’s step in the strategic plan – STI
Comparable Operating Profit 60%(1)
Cash Release 20%
Continued focus on profitability
Achieve a strong cash position
Health & Safety 10% – Lost Time
Injury Frequency Rate (with a
fatality modifier)
Women in leadership 5%
Women in workforce 5%
Deliver on our focus on the
continued health and safety
of our employees
Deliver on our commitment to
become a more diverse
employer
Delivering sustainable value – LTI
50% relative TSR, 40% cumulative reported EPS (adjusted for
impairments and M&A), 10% carbon emission reduction (scope 1,
2 and 3)
A more rounded and balanced approach reflecting performance over
the long term in growing the business and in delivering shareholder
value whilst working towards our 2030 goal of 50% carbon emission
reduction
The gender diversity metric for 2025 STI will be changed
from female percentage in external hiring to two equally
weighted metrics of women in leadership and women
in workforce, as we prioritize female development in
leadership and throughout the employee experience to
drive diversity of decision making which will lead to stronger
company performance.
Our other ESG-related focus and commitment is reflected
in the continued use of the health & safety metric with a
fatality modifier and the carbon emission reduction scope 1,
2 and 3 targets.
Share ownership requirement
Our President and CEO is required to hold Nokia shares
equivalent to three times his annual base salary. Pekka
Lundmark currently maintains a total shareholding which
significantly exceeds the requirement. This demonstrates
his commitment to and alignment with Nokia’s long-term
success and our shareholder interests.
Conclusions
Remuneration outcomes for 2024 reflect our resilient
performance despite the challenges during the year
and demonstrate our remuneration philosophy of pay
for performance. The proposed Remuneration Policy
amendments build on what has proved to be a
successful remuneration strategy over the years with
amendments to support our future growth strategy.
I thank shareholders who assisted the Committee in the
consultation process, and very much welcome their
constructive feedback and support for the proposals.
I look forward to your continued support at our 2025
Annual General Meeting.
THOMAS DANNENFELDT,
CHAIR OF THE PERSONNEL COMMITTEE
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Nokia in 2024
(1) Non-IFRS measure. For the definition and reconciliation of non-IFRS measures
to the most directly comparable IFRS measure, refer to the “Alternative
performance measures” section.
Introduction
This Remuneration Report of Nokia Corporation (the Report)
has been approved by the Company’s Board of Directors
(the Board) to be presented to the Annual General Meeting
2025. The resolution of the Annual General Meeting on the
Report is advisory. The Report presents the remuneration
of the Board members and the President and CEO for
the financial year 2024 in accordance with the Decree
of the Finnish Ministry of Finance 608/2019 and the
Finnish Corporate Governance Code 2025, as well as other
applicable Finnish laws and regulations. The members of the
Board and the President and CEO have been remunerated in
accordance with our approved Remuneration Policy during
the financial year 2024. No temporary or other deviations
from the Policy have been made and no clawback provisions
have been exercised during the financial year 2024.
In 2024, our remuneration structure promoted the
Company’s long-term financial success by setting the
performance criteria for short- and long-term incentives to
support the Company’s short- and long-term goals, as well
as through shareholding requirements set for the President
and CEO, the GLT and the Board members. Aligned with
Nokia’s pay-for-performance remuneration principle,
performance-based remuneration was emphasized over
fixed base salary. The setting and application of the
performance criteria for incentive programs executed the
philosophy of pay-for-performance and supported the
delivery of the corporate strategy as well as the creation
of long-term sustainable shareholder value.
The table on the right compares the development of the
remuneration of our Board of Directors, President and CEO,
average employee pay and Company performance over a
five-year period.
The pay-for-performance remuneration principle applied
to the President and CEO, as well as the shareholding
requirement of the President and CEO and the Board
members, as applicable, contribute to an alignment of
interests with shareholders, while also promoting and
incentivizing decisions that are in the long-term interest
of the Company.
Year
Aggregate remuneration of
the Board of Directors
(EUR)(1)
President and CEO actual
remuneration (EUR)(2)
Average salaries and wages
(EUR)(3)(5)
Net sales (EURm)(5)
Total shareholder return
(rebased to 100 at 31 Dec
2019)(4)
2020
2 016 000
3 587 781
65 787
21 852
95.60%
2021
1 821 000
4 908 244
70 411
22 202
169.11%
2022
2 280 000
4 316 606
74 241
23 761
132.96%
2023
2 503 000
3 738 560
69 096
21 138
96.68%
2024
2 511 000
3 988 250
78 576
19 220
140.28%
(1)
Aggregate total remuneration paid to the members of the Board during the financial year as annual fee and meeting fee, as applicable, and as approved by general meetings
of shareholders. The value depends on the number of members elected to the Board for each term as well as on the composition of the Board committees and travel
required. During the term that began from the Annual General Meeting 2021, the Board had eight members only, compared to ten members during the following terms.
(2)
The President and CEO actual remuneration represents the aggregate total of the two President and CEOs in 2020.
(3)
Average salaries and wages are based on average employee numbers and their total salaries and wages as reported in the Company’s financial statements.
(4)
Total shareholder return on last trading day of the previous year.
(5)
In June 2024, Nokia classified its Submarine Networks business as a discontinued operation. The comparative amounts for 2023 and 2022 have been recast accordingly.
We also present this data graphically:
Comparative data (rebased year-end 2019 = 100)
Remuneration of the Board of Directors
CEO earned remuneration
Average salaries and wages
Net sales
Total shareholder return
2019
2020
2021
2022
2023
2024
0
20
40
60
80
100
120
140
160
180
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Pay for performance
Core to our remuneration philosophy is a desire to pay
for performance.
Each year we review overall total shareholder return
compared with LTI vesting, mapping the performance
of the plans against the total shareholder return curve.
Looking at the performance of our long-term incentive plans
against total shareholder return, there is a reasonable
alignment with the performance of the plans declining as total
shareholder return declines.
The Board continues to actively monitor the performance of
our long-term incentive plans to ensure that they deliver value
for shareholders.
Global peer group
For 2024, the global peer group used in our remuneration
benchmarking and relative TSR performance assessment
consists of 27 companies.
ABB
IBM
Adobe
Infineon Technologies
Airbus
Juniper Networks
ASML
Kone
Atos
Motorola Solutions
BAE Systems
NXP Semiconductors
Capgemini
Oracle
Ciena
Philips
Cisco Systems
SAP
Corning
Siemens Healthineers
Dell Technologies
VMware
Ericsson
Vodafone Group
Hewlett Packard Enterprise
Wärtsilä
HP
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Nokia in 2024
Long-term incentive plan, as of 31 December
TSR value (%)
100
100
46
29
57
53
40
12
25.72
23.75
Achieved
Overachieved
Nokia total shareholder return (“TSR”)
2014
2015
2016
2017
2018
2019
2020
2021
2022*
2023**
2024**
0
50
100
150
200
250
* 2022 LTI's performance period ended in January 2025. The vesting outcome of this award will be reported in the 2025 Remuneration Report.
** 2023 and 2024 LTIs’ performance periods are not yet completed.
Share price and total shareholder return vs long-term incentive performance
Remuneration of the Board of Directors
The shareholders resolve annually on director remuneration
based on a proposal made by the Board of Directors on the
recommendation of the Board’s Corporate Governance and
Nomination Committee.
The aggregate amount of remuneration paid to the Board
members in 2024 equaled EUR 2 511 000 of which
EUR 2 390 000 consisted of annual fees and the rest of
meeting fees. In accordance with the resolution by the
Annual General Meeting 2024, approximately 40% of the
annual fee from Board and Board Committee work was paid
in Nokia shares purchased from the market on behalf of
the Board members following the Annual General Meeting.
The directors shall retain until the end of their directorship
such number of shares that corresponds to the number of
shares they have received as Board remuneration during
their first three years of service on the Board.
The rest of the annual fee was paid in cash, most of which
was used to cover taxes arising from the remuneration.
All meeting fees were paid in cash.
It is the Company’s policy that the non-executive members
of the Board do not participate in any of Nokia’s equity
programs and do not receive performance shares, restricted
shares, or any other variable remuneration for their duties
as Board members. No such variable remuneration was paid
since all persons acting as Board members during the
financial year 2024 were non-executive.
Board remuneration for the term that began at the Annual General Meeting held on 3 April 2024 and ends at the close of the
Annual General Meeting in 2025 consisted of the following fees.
Annual fee
EUR
Chair
440 000
Vice Chair
210 000
Member
185 000
Chair of Audit Committee
30 000
Member of Audit Committee
15 000
Chair of Personnel Committee
30 000
Member of Personnel Committee
15 000
Chair of Strategy Committee
20 000
Member of Strategy Committee
10 000
Chair of Technology Committee
20 000
Member of Technology Committee
10 000
Meeting fee(1)
EUR
Meeting requiring intercontinental travel
5 000
Meeting requiring continental travel
2 000
(1)
Paid for a maximum of seven meetings per term.
The following table outlines the total annual remuneration paid in 2024 to the members of the Board for their services, as
resolved by the shareholders at the Annual General Meeting.
Annual fees
(EUR)
Meeting fees
(EUR)(1)
Total
remuneration paid
(EUR)
60% of annual fees
and all meeting fees
paid in cash (EUR)
40% of annual
fees paid in shares
(EUR)
Number of shares
(approximately 40%
of the annual fee)
Sari Baldauf (Chair)
465 000
10 000
475 000
289 000
186 000
52 993
Søren Skou (Vice Chair)
220 000
14 000
234 000
146 000
88 000
25 072
Timo Ahopelto
210 000
10 000
220 000
136 000
84 000
23 932
Elizabeth Crain
220 000
12 000
232 000
144 000
88 000
25 072
Thomas Dannenfeldt
240 000
14 000
254 000
158 000
96 000
27 351
Lisa Hook
210 000
14 000
224 000
140 000
84 000
23 932
Jeanette Horan (until 3 April 2024)(2)
—
—
—
—
—
—
Mike McNamara (as of 3 April 2024)
210 000
14 000
224 000
140 000
84 000
23 932
Thomas Saueressig
195 000
14 000
209 000
131 000
78 000
22 223
Carla Smits-Nusteling
215 000
9 000
224 000
138 000
86 000
24 502
Kai Öistämö
205 000
10 000
215 000
133 000
82 000
23 362
Total
2 390 000
121 000
2 511 000
1 555 000
956 000
272 371
(1)
Meeting fees include all meeting fees paid for the term that ended at the Annual General Meeting held on 3 April 2024 and meeting fees accrued and paid in 2025 for the
term that began at the same meeting.
(2)
Stepped down at the Annual General Meeting on 3 April 2024 and received no annual or meeting fees in 2024.
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Remuneration of the President and CEO
The following table shows the actual remuneration received by Pekka Lundmark in 2024 and 2023. The 2023 LTI figure relates to
the vesting of the final tranche of the restricted share award granted to him on joining Nokia in respect of forfeited shares from his
previous employer and the vesting of the 2020 LTI performance shares. The 2024 LTI figure relates to the vesting of the 2021 LTI
performance shares and the 2021 eLTI matching performance shares.
EUR
2024
Pay mix(1)
2023
Pay mix(1)
Salary
1 410 500
36%
1 322 750
36%
Short-term incentive(2)
1 824 834
46%
1 079 695
30%
Long-term incentive
697 872
18%
1 240 359
34%
Other remuneration(3)
55 044
95 756
Total
3 988 250
3 738 560
(1) Pay mix reflects the proportions of base salary, STI and LTI of total remuneration, excluding other remuneration.
(2) STI represents the amounts earned in respect of financial year 2024, but that are paid in April 2025.
(3) Other remuneration includes benefits such as telephone, car, driver, tax compliance support and medical insurance.
Pursuant to Finnish legislation, Nokia is required to make contributions to the Finnish TyEL pension arrangements in respect
of the President and CEO. Such payments can be characterized as defined contribution payments. In 2024, payments to the
Finnish state pension system equaled EUR 310 937 for Pekka Lundmark in respect of his service as President and CEO
(EUR 422 274 for Pekka Lundmark in 2023). No supplementary pension arrangements were offered.
2024 Short-term Incentive of the President and CEO
Targets for the STI are set annually at or before the start of the year (adjusted for M&A activities), balancing the need to deliver
value with the need to motivate and drive the performance of the Executive Team. Targets are determined for a set of strategic
metrics that align with driving sustainable value for shareholders and are set in the context of market expectations and analyst
consensus forecasts. For 2024, Pekka Lundmark had a target STI opportunity of 125% of annual base salary. His 2024 STI
framework was based on a scorecard of financial and ESG objectives. Achievements against the 2024 targets are set out in the
table below. The outcomes for the financial metrics and the gender diversity metric were calculated based on the formulaic
approach. The health & safety metric, lost time injury frequency rate, achieved an outcome of 123% of target. However,
as a result of eight fatalities within Nokia’s control during the year, the Board exercised downward discretion to apply the fatality
modifier to reduce the payout under this element by 50%, which resulted in the final outcome of 62% for this metric.
Metric
Weight
Target
2024 performance
outcome
2024 STI
outcome
(% of target)
Comparable operating profit(1)
60 %
EUR 2 782 million
EUR 2 619m
83%
Cash release
20 %
EUR -1 115 million
EUR 1 149m
225%
Diversity
10 %
Female percentage of global external hires of 29%
28%
25%
Health & safety
10 %
■
Employee lost time injury frequency rate (LTIFR) of 0.089
■
Fatality modifier (downward discretion in the event of fatalities)
LTIFR of 0.085
with 8 fatalities
62%
Total STI outcome
100%
104%
(1)
Non-IFRS measure. For the definition and reconciliation of non-IFRS measures to the most directly comparable IFRS measure, refer to the “Alternative performance measures” section.
Accordingly, the total 2024 STI payout for Pekka Lundmark as the President and CEO was EUR 1 824 834.
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Long-term Incentive awards granted to the President and CEO during 2024
In 2024, Pekka Lundmark was granted the following LTI (performance share) awards.
Targets for our LTI performance shares are set in a similar context to the STI. The performance shares targets are set at the
start of the performance period and locked in for the life of the plan. The performance conditions for the 2024 performance
shares are based on 50% relative TSR against our global peer group(1), 40% cumulative earnings per share (EPS) and 10% carbon
emission reduction targets over the three-year performance period from 2024 to 2027. The targets for all metrics and the
performance and vesting outcomes will be disclosed in the 2027 Remuneration Report.
Performance share awards(1) (2)
Units awarded
Grant date face value(3)
(EUR)
Grant date
Vesting
2024 LTI performance shares
834 600
3 012 906
5 July 2024
Q3 2027
(1)
Global peer group consisted of 27 companies (see details under the “Global peer group” section).
(2)
The maximum vesting is 200% if stretch performance targets are met.
(3)
Grant date face value was calculated using the closing price of EUR 3.61 on the date of grant.
During 2024, Pekka Lundmark was also invited to participate in the co-investment eLTI, under which he invested EUR 2.8 million
in Nokia shares and received two-for-one matching performance shares in return. 50% of the matching performance shares
were subject to the same performance conditions as set out above and the remaining 50% were subject to the delivery of a
strategic project for Nokia in the next few years. The eLTI matching performance shares also have a three-year performance
and vesting period. The targets for all metrics and the performance and vesting outcomes will be disclosed in the 2027
Remuneration Report.
Performance share awards
Units awarded
Grant date face value(1)
(EUR)
Grant date
Vesting
2024 eLTI matching performance shares
1 704 530
6 289 716
16 August 2024
Q3 2027
(1) Grant date face value was calculated using the closing price of EUR 3.69 on the date of grant.
Long-term Incentive awards and other equity awards vested for the President and CEO during 2024
Pekka Lundmark was granted LTI performance share award in March 2021 and eLTI matching performance shares in July 2021.
Both awards had a three-year performance period and were subject to dividend adjusted share price targets over the
performance period. These awards vested during 2024 as set out in the tables below.
Share awards vesting during the year
Units awarded
Target share
price (EUR)
Share price
achievement
(EUR)
Vesting outcome
(% of target)
Units vested
Value of vested
award(1) (EUR)
2021 LTI performance shares
769 200
4.47
3.66
12.0%
92 304
297 219
Share awards vesting during the year
Units awarded
Target share
price (EUR)
Share price
achievement
(EUR)
Vesting outcome
(% of target)
Units vested
Value of vested
award(2) (EUR)
2021 eLTI matching performance shares
962 180
4.47
3.66
12.0%
115 462
400 653
(1) The vesting value of the 2021 LTI performance shares was calculated using the average share price of EUR 3.22 on 10 April 2024, the day before the share delivery date.
(2) The vesting value of the 2021 eLTI matching performance shares was calculated using the average share price of EUR 3.47 on 26 June 2024, the day before the share
delivery date.
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The President and CEO’s share ownership and unvested share awards
Our share ownership policy requires that the President and CEO holds a minimum of three times his or her annual base salary in
Nokia shares in order to ensure alignment with shareholder interests over the long term. Pekka Lundmark significantly exceeds
this requirement with a holding of 394%(3) well within the five-year allotted period.
Pekka Lundmark
Units
Value(1) (EUR)
Beneficially owned shares at 31 December 2024
1 573 826
6 720 237
Unvested shares under outstanding Nokia equity plans(2)
3 718 730
15 878 977
Total
5 292 556
22 599 214
(1)
The values are based on the closing price of a Nokia share of EUR 4.27 on Nasdaq Helsinki on 30 December 2024.
(2)
The number of units represents the number of unvested awards as of 31 December 2024.
(3)
Shareholding of 394% of annual base salary as of 15 November 2024, using 12-month average share price.
The President and CEO’s termination provisions 2024
Termination by
Reason
Notice
Compensation
Nokia
Cause
None
The President and CEO is entitled to no additional remuneration and all unvested
equity awards would be forfeited after termination.
Nokia
Reasons other
than cause
Up to 12 months
The President and CEO is entitled to a severance payment equaling up to
12 months’ remuneration (including annual base salary, benefits, and target short-
term incentive) and unvested equity awards would be forfeited after termination,
unless the Board determines otherwise.
President
and CEO
Any reason
12 months
The President and CEO may terminate his service agreement at any time with
12 months’ notice. The President and CEO would either continue to receive salary
and benefits during the notice period or, at Nokia’s discretion, a lump sum of
equivalent value. Additionally, the President and CEO would be entitled to any
short- or long-term incentives that would normally vest during the notice period.
Any unvested equity awards would be forfeited after termination, except in the
event of death, permanent disability and retirement, and unless the Board
determines otherwise.
President
and CEO
Nokia’s material
breach of the
service agreement
Up to 12 months
In the event that the President and CEO terminates his service agreement based
on a final arbitration award demonstrating Nokia’s material breach of the service
agreement, he is entitled to a severance payment equaling up to 12 months’
remuneration (including annual base salary, benefits and target incentive). Any
unvested equity awards would be forfeited after termination.
The President and CEO is subject to a 12-month non-competition and non-solicit obligation that applies after the termination
of the service agreement or the date when he is released from his obligations and responsibilities, whichever occurs earlier.
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Remuneration Policy
Nokia Corporation’s Remuneration Policy, which applies to the
governing bodies of the Company, i.e. the Board of Directors
and the President and CEO, was approved by shareholders at
the Annual General Meeting 2024, receiving 90.55% of votes
in favor. During 2024, the Board’s Personnel Committee
continued to monitor the developments in shareholder
expectations and market conditions. Following which, on the
recommendation of the Personnel Committee, the Board
decided to propose further amendments to the Policy to
ensure it supports Nokia’s future growth strategy, to further
align with best global market practices, to incentivize longer-
term decision making for sustainable shareholder value
creation and to help with retention.
The key changes to the Policy are as follows:
■
Clarification that malus provisions shall apply to all the
President and CEO’s incentive plans with the same trigger
events as for clawback provisions; and
■
Introduction of the possibility to grant restricted share
awards to the President and CEO of up to 100% of annual
base salary, vesting after a minimum of three years, subject
to financial underpins and continued service.
This section sets out the updated Policy, which will be
submitted to the Annual General Meeting 2025 to be adopted
through an advisory vote.
The updated Policy would apply to remuneration in respect
of the four-year period from 2025 to 2029, unless presented
to the General Meeting at an earlier date with proposed changes.
The updated Remuneration Policy for the Board
of Directors
In accordance with the Remuneration Policy, the Board’s
Corporate Governance and Nomination Committee periodically
reviews the remuneration for the Chair and members of the
Board against companies of similar size and complexity.
The objective of the Corporate Governance and Nomination
Committee is to enable Nokia to compete for top-of-class
Board competence to maximize value creation for its
shareholders. The Committee’s aim is that the Company has
an efficient Board composed of international professionals
representing a diverse and relevant mix of skills, experience,
background and other personal qualities. Competitive Board
remuneration contributes to the achievement of this target.
The main structure of the Board remuneration as outlined
in the Remuneration Policy is set out in the table below.
Fees
Fees consist of annual fees and meeting fees.
Approximately 40% of the annual fee is paid
in Nokia shares purchased from the market on
behalf of the Board members or alternatively
delivered as treasury shares held by the
Company. The balance is paid in cash, most of
which is typically used to cover taxes arising
from the paid remuneration.
Meeting fees are paid in cash.
Incentives
Non-executive directors are not eligible to
participate in any Nokia incentive plans and do
not receive performance shares, restricted
shares or any other equity-based or other
form of variable compensation for their duties
as members of the Board.
Pension
Non-executive directors do not participate in
any Nokia pension plans.
Share
ownership
requirement
Members of the Board shall normally retain
until the end of their directorship such
number of shares that corresponds to the
number of shares they have received as Board
remuneration during their first three years of
service on the Board (the net amount
received after deducting those shares needed
to offset any costs relating to the acquisition
of the shares, including taxes).
Other
Directors are compensated for travel and
accommodation expenses as well as other
costs directly related to Board and
Committee work. These are paid in cash.
Proposals of the Board of Directors to the Annual General
Meeting 2025 were published on 30 January 2025. The
Corporate Governance and Nomination Committee has
resolved to recommend to the Board that the annual fees
of Board members would remain at an unchanged level.
Consequently, the Board proposes to the Annual General
Meeting 2025 that the annual fees payable for a term ending
at the close of the next Annual General Meeting be as follows:
■
EUR 440 000 for the Chair of the Board;
■
EUR 210 000 for the Vice Chair of the Board;
■
EUR 185 000 for each member of the Board;
■
EUR 30 000 each for the Chairs of the Audit Committee and
the Personnel Committee and EUR 20 000 for the Chairs of
the Technology Committee and the Strategy Committee as
an additional annual fee; and
■
EUR 15 000 for each member of the Audit Committee and
the Personnel Committee and EUR 10 000 for each member
of the Technology Committee and the Strategy Committee
as an additional annual fee.
In addition, the Board of Directors proposes that the meeting
fees for Board and Committee meetings remain at the current
level. The meeting fees are based on potential travel required
between the Board member’s home location and the location
of a meeting and are paid for a maximum of seven meetings
per term as follows:
■
EUR 5 000 per meeting requiring intercontinental travel;
and
■
EUR 2 000 per meeting requiring intracontinental travel.
Only one meeting fee is paid if the travel covered by the fee
includes several meetings of the Board and its Committees.
The Board also proposes that members of the Board shall
be compensated for travel and accommodation expenses
as well as other costs directly related to Board and Board
Committee work.
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The updated Remuneration Policy for the President and CEO
Base salary
To attract and retain individuals
with the requisite level of
knowledge, skills and experience
to lead our businesses
Base salary is normally reviewed annually taking into consideration a variety of
factors, including, for example, performance of the Company and the individual,
remuneration of our global peer group, changes in individual responsibilities and
employee salary increases.
Whilst there are no performance targets attached to the payment of base
salary, performance is considered as context in the annual salary review.
Pension
To provide retirement benefit aligned
with local country practice
Pension arrangements reflect the relevant market practice and may evolve year
on year. The President and CEO may participate in the applicable pension
programs available to other executives in the country of employment. Details of
the actual pension arrangement will be shown in the annual Remuneration
Report. In Finland, the President and CEO participates in the Finnish statutory
Employee’s Pension Act (TyEL), and there is no supplementary pension plan.
N/A
Other benefits
To provide a competitive level of
benefits and to support recruitment
and retention
Benefits will be provided in line with local market practice in the country of
employment and may evolve year on year. Benefits may include, for example,
a company car (or cash equivalent), risk benefits (for example life and
disability insurance) and employer contributions to insurance plans (for
example medical insurance).
Additional benefits and allowances may be offered in certain circumstances
such as relocation support, expatriate allowances, and temporary living and
transportation expenses aligned with Nokia’s mobility policy.
The President and CEO is also eligible to participate in similar programs which may
be offered to Nokia’s other employees such as the voluntary all-employee share
purchase plan.
N/A
Short-term incentive (STI)
To incentivize and reward
performance against delivery
of the annual business plan
STI is based on performance against one-year financial and non-financial targets
and normally paid in cash.
Minimum payout is 0% of base salary.
Target opportunity is 125% of base salary.
Maximum opportunity is 281.25% of base salary.
The malus and clawback conditions apply in accordance with Company clawback
policies.
Performance measures, weightings and targets for the selected measures are
set annually by the Board to ensure they continue to support Nokia’s short-
term business strategy. These measures can vary from year to year to reflect
business priorities and may include a balance of financial, key operational and
non-financial measures (including but not limited to strategic, customer
satisfaction, employee engagement, environmental, social, governance or
other sustainability-related measures).
Although the performance measures and weighting may differ year to year
reflecting the business priorities, in any given year, a minimum of 60% of
measures will be based on financial criteria.
Targets for the short-term incentives are set at the start of the year, in the
context of analyst expectations and the annual plan, selecting measures that
align to the delivery of Nokia’s strategy.
The performance metrics and weightings are disclosed retrospectively in the
annual Remuneration Report.
Long-term incentive (LTI) –
performance share award
To reward for delivery of sustainable
long-term performance, align the
President and CEO’s interests with
those of shareholders, and aid
retention
Long-term incentive awards may be made annually in performance shares,
vesting normally after three years dependent on the achievement of
performance conditions measured over a three-year period.
Target award level is 200% of base salary at the date of grant, with maximum
vesting of 400% of base salary.
The malus and clawback conditions apply in accordance with Company
clawback policies.
Performance measures, weightings and target metrics for the selected
measures are set by the Board to ensure they continue to support Nokia’s
long-term business strategy and financial success.
Targets are set in the context of Nokia’s long-term plans and analyst
forecasts, ensuring that they are considered both achievable and
sufficiently stretching.
The Board may choose different measures and weightings each year based on
the business plan. The measures consist of at least 60% financial and/or share
price-related measures. The Performance metrics and weightings are disclosed
retrospectively in the annual Remuneration Report.
Remuneration elements
Purpose and link to strategy
Operation including maximum opportunity
Performance metrics
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Long-term incentive (LTI) -
restricted share award
To incentivize longer-term decision
making for sustainable shareholder
value creation and to aid retention
Restricted share awards of up to 100% of base salary may be granted, vesting
after at least three years, subject to financial underpins and continued service.
The malus and clawback conditions apply in accordance with Company
clawback policies.
Financial underpins are determined by the Board to ensure alignment with
underlying company performance and shareholder experience.
The Board may choose different financial underpins for each grant based on
the business plan and strategic priority.
Enhanced LTI (eLTI) –
co-investment arrangement
To further align the President
and CEO’s interests with Nokia’s
long-term success and
shareholder interests
Unlike the LTI performance share award, this is not an annual award and is only
granted in exceptional circumstances.
The President and CEO may be invited, at the discretion of the Board, to
purchase investment shares of up to 200% of base salary, and in return,
receive two matching shares for every one investment share purchased.
The matching shares are delivered in the form of performance shares, typically
subject to the same performance conditions as for the LTI performance share
award, with a three-year performance and vesting period.
The minimum vesting of the matching shares is 0% of base salary and maximum
vesting is two times grant level.
The malus and clawback conditions apply in accordance with Company
clawback policies.
The performance metrics, targets and weightings for the matching shares
are typically the same as those for LTI performance shares granted in the
same year.
Shareholding requirement
Align the President and CEO’s
interests with those of
shareholders and ensure any
decisions made are in the long-
term interest of the Company
The President and CEO is required to build and maintain a shareholding equivalent
to 300% of base salary, to be achieved normally within five years of appointment.
N/A
Remuneration elements
Purpose and link to strategy
Operation including maximum opportunity
Performance metrics
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Pay mix and remuneration scenarios for the President and CEO
Aligned with Nokia’s pay-for-performance remuneration
principle, performance-based remuneration is emphasized
over base salary. The chart below illustrates how the
proportion of the President and CEO’s remuneration package
varies at the minimum, target and maximum levels of
performance. A significant proportion of remuneration is linked
to performance, especially at maximum performance levels.
Actual pay mix is influenced by the extent to which the
performance targets set for the STI and LTI are achieved and
may vary from the scenarios below.
The long-term incentive vesting outcomes in the chart below
ignore share price movement from grant to vest. The eLTI is
not included in this analysis as it is not an annual award and
is only granted in exceptional circumstances. The vesting
outcome of the matching performance shares under the eLTI
would be dependent, besides the performance, on the value of
the investment, which could range from 0% to 200% of base
salary for the President and CEO. The minimum and maximum
vesting levels for the matching performance shares are provided
in the above summary table of the remuneration elements.
President and CEO pay mix scenarios
Share ownership requirement
Nokia believes that it is desirable for its executives to
own shares in Nokia to align their interests with those of
shareholders and to ensure that their decisions are in the
long-term interest of the Company. The President and CEO
is required to own three times his or her annual base salary
in Nokia shares and is given a period of five years from
appointment to achieve the required level of share ownership.
Malus and clawback
The malus and clawback conditions apply in accordance with
Company’s clawback policies to the short- and long-term
incentives for all participants, including the President and CEO.
Nokia’s Executive Officer Clawback Policy is applied in the case
of any erroneously awarded compensation due to restatement
in the Company’s Financial Statements with a three-year
lookback period, resulting in the reclaiming of amounts then-
outstanding or previously paid.
Additionally, under the Nokia Incentive Compensation Clawback
Policy, unless the Personnel Committee otherwise decides,
the recoupment of previously awarded, paid or received
compensation is triggered in situations of reputational damage,
willful breach of internal control procedures, gross misconduct
and restatement of financial statement (clawback triggers)
with a recoupment period not exceeding three years in total.
Remuneration on recruitment
Our policy on recruitment is to offer a remuneration package
that is sufficient to attract, retain and motivate the individual
with the right skills for the required role.
On occasion, we may offer buy-out awards to compensate for
a candidate’s forfeited awards on leaving a previous employer.
Such buy-out awards would, where possible, reflect the nature
of the forfeited awards in terms of delivery mechanism, time
horizons, attributed expected value and performance conditions.
Termination provisions
In the event of a termination of employment, any payable
remuneration is determined in line with legal advice regarding
local legislation, country policies, contractual obligations
and the rules of the applicable incentive and benefit plans.
Payment in lieu of notice will not typically exceed the value
of 12 months’ remuneration (including base salary, benefits,
STI and pension contribution, if applicable). The treatment of
equity incentive awards may depend on the circumstances
of the departure. In the event of death, permanent disability
or retirement, unvested awards are normally allowed to be
retained. These awards will vest either on departure or at
normal vesting date, subject to performance (if applicable)
and time proration, unless the Board of Directors determines
otherwise. Current termination provisions of the President
and CEO’s service agreement are described in the
Remuneration Report.
Change of control arrangements, if any, are based on a double
trigger structure, which means that both a specified change of
control event and termination of the individual’s employment
must take place for any change of control-based severance
payment to materialize.
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Work of the Personnel Committee
The Personnel Committee convened five times during 2024 with a general theme for each meeting.
Remuneration governance
We manage our remuneration through clearly defined
processes, with well-defined governance principles, ensuring
that no individual is involved in the decision making related
to their own remuneration, and that there is appropriate
oversight of any remuneration decision. Remuneration of
the Board is annually presented to shareholders for approval
at the Annual General Meeting.
The Board submits its proposal to the Annual General Meeting
on the recommendation of the Board’s Corporate Governance
and Nomination Committee, which actively considers and
evaluates the appropriate level and structure of directors’
remuneration. Shareholders also authorize the Board to
resolve to issue shares, for example to settle Nokia’s equity-
based incentive plans, based on the proposal of the Board.
The Board of Directors approves, and the independent
members of the Board confirm, the remuneration of
the President and CEO, upon recommendation of the
Personnel Committee.
The Personnel Committee consults regularly with the President
and CEO and the Chief People Officer. The President and
CEO has an active role in the remuneration governance and
performance management processes for the GLT and the wider
employee population at Nokia. However, the President and
CEO or the Chief Personnel Officer are not present when their
own remuneration is reviewed or discussed. This enables the
Personnel Committee to be mindful of employee pay and
conditions across the broader employee population.
The Committee has the power, in its sole discretion, to retain
remuneration advisers to assist the Personnel Committee in
evaluating executive remuneration. During 2024, the Personnel
Committee engaged Willis Towers Watson, an independent
external adviser, to assist in the review and determination of
executive remuneration and program design, as well as to
provide insight into market trends and regulatory developments.
The Personnel Committee Chair regularly engages with
shareholders to discuss their views on our remuneration
policies, programs and associated disclosures and reflects
on their feedback. These insights are taken account of in
the Committee’s and Board’s decision-making process for
executive remuneration.
May
■
2024 Annual General Meeting season review
■
GLT remuneration review
■
Culture update
■
GLT succession planning
July
■
Remuneration Policy review
■
GLT succession planning
■
Inflight LTI awards performance update
■
Market practice update
■
People risks including physical safety review
September
■
Nokia Incentive Compensation Clawback Policy review
■
Remuneration Policy review
■
Workforce demographics
■
Personnel Committee adviser selection review
December
■
Performance update of 2024 STI and LTI
■
Preliminary review of metrics and targets for 2025 STI
and LTI
■
2025 equity plan budget and allocation
■
Proxy agency and shareholder consultation feedback
■
Planning of Remuneration Report for 2024
■
GLT Succession planning
■
Executive shareholding assessment
■
Personnel Committee charter review
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January
■
2023 STI performance outcome
■
2024 STI and LTI metrics and target setting
■
President and CEO remuneration review
■
Equity plan vesting and granting during 2024
■
Remuneration Report for 2023
Remuneration of the Nokia Group
Leadership Team in 2024
The remuneration of the members of the GLT (excluding the
President and CEO) consists of base salary, other benefits, and
short- and long-term incentives. Short-term incentive plans
are based on rewarding the delivery of business performance
utilizing certain, or all, of the following metrics as appropriate
to the member’s role: comparable operating profit(1), cash
release and ESG-related measures such as health & safety.
Executives in the GLT are subject to the same remuneration
policy framework as the President and CEO. This includes
being subject to the malus and clawback conditions and
shareholding requirements. The shareholding requirement
for members of the GLT is two times their annual base salary,
built within a period of five years of their appointment.
At the end of 2024, the Group Leadership Team consisted of 11 persons split between Finland, other European countries and
the United States. For information regarding the current Group Leadership Team composition, refer to the Corporate
Governance Statement.
Name
Position in 2024
Appointment date
Pekka Lundmark
President and CEO
1 August 2020
Nishant Batra
Chief Strategy and Technology Officer
18 January 2021
Louise Fisk
Chief Communications Officer
18 October 2024
Lorna Gibb
Chief People Officer
13 June 2024
Federico Guillén
President of Network Infrastructure
8 January 2016
Patrik Hammarén
Acting President of Nokia Technologies
18 October 2024
Mikko Hautala
Chief Geopolitical and Government Relations Officer
1 November 2024
Esa Niinimäki
Chief Legal Officer
25 January 2023
Raghav Sahgal
President of Cloud and Network Services
1 June 2020
Tommi Uitto
President of Mobile Networks
31 January 2019
Marco Wirén
Chief Financial Officer
1 September 2020
Remuneration of the Group Leadership Team members in 2024
Remuneration of the Group Leadership Team (excluding the President and CEO) in 2023 and 2024, in the aggregate, was as follows:
EURm⁽¹⁾
2024
2023
Salary, short-term incentives and other compensation(2)
11.3
10.8
Long-term incentives(3)
3.9
2.5
Total
15.2
13.3
(1)
The values represent each member’s time on the Group Leadership Team.
(2)
Short-term incentives represent amounts earned in respect of 2024 performance. Other compensation includes mobility-related payments, local benefits and pension costs.
(3)
The amounts represent the equity awards that vested in 2024 and 2023.
The members of the Group Leadership Team (excluding the President and CEO) were awarded the following equity awards under the
Nokia equity program in 2024:
Award
Units awarded(1)
Grant date fair value (EUR)
Grant date
Vesting
Performance share award(2)
7 445 257
27 462 512
5 July 2024, 16 August 2024,
16 December 2024
Q3 & Q4 2027
Restricted share award(3)
151 467
626 551
5 July 2024, 11 October 2024,
16 December 2024
Q4 2025, Q4 2026, Q3 2027
(1)
Includes units awarded to persons who were Group Leadership Team members during 2024.
(2)
The 2024 performance shares have a three-year performance period based on 50% relative total shareholder return, 40% three-year cumulative EPS and 10% carbon
emission reduction scope 1, 2 and 3 targets. The maximum payout is 200% subject to maximum performance against the performance criteria. Vesting is subject to
continued employment.
(3)
Vesting of each tranche of the restricted share awards is conditional on continued employment.
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(1) Non-IFRS measure. For the definition and reconciliation of non-IFRS measures
to the most directly comparable IFRS measure, refer to the ”Alternative
performance measures” section.
Unvested equity awards held by the Group Leadership Team, including the President and CEO
The following table sets forth the potential aggregate ownership interest through the holding of equity-based long-term incentives
of the Group Leadership Team in office, including the President and CEO, at 31 December 2024:
Shares receivable through
performance
shares at grant
Shares receivable through
performance
shares at maximum(4)
Shares receivable through
restricted shares
Number of equity awards held by the Group Leadership Team(1)
10 292 949
20 567 565
753 517
% of the outstanding shares(2)
0.19 %
0.38 %
0.01 %
% of the total outstanding equity incentives (per instrument)(3)
24.59 %
25.70 %
0.65 %
(1)
Includes the 11 members of the Group Leadership Team in office at 31 December 2024.
(2)
The percentages are calculated in relation to the outstanding number of shares and total voting rights of Nokia at 31 December 2024, excluding shares held by the Nokia Group.
No member of the Group Leadership Team owned more than 1% of the outstanding Nokia shares.
(3)
The percentages are calculated in relation to the total outstanding equity incentives per instrument.
(4)
At maximum performance, under the performance share plans outstanding at 31 December 2024, the payout would be 200% and the table reflects this potential maximum payout.
Employee Share Purchase Plan
All eligible Nokia employees, including the President and CEO and our GLT members, can participate in the Employee Share Purchase
Plan, by making contributions from their monthly net salaries (up to a cap) to purchase Nokia shares at market value. Participants will
receive one matching share for every two purchased shares they still hold at the end of the applicable annual plan cycle. Until the
matching shares are delivered, the participants have no shareholder rights, such as voting or dividend rights associated with the
matching shares.
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Remuneration continued
Nokia in 2024
Board
review
Business description
70
Board’s review 2024
71
Selected financial data
72
Operating and financial review
73
Results of operations
73
Results of segments
77
Network Infrastructure
77
Mobile Networks
78
Cloud and Network Services
79
Nokia Technologies
80
Group Common and Other
81
Liquidity and capital resources
82
Financial position
82
Cash flow
82
Financial assets and debt
83
Venture fund investments and commitments
83
Treasury policy
83
Foreign exchange impact
84
Sustainability Statement
85
Introduction
86
General information
87
Environmental information
110
Social information
146
Governance information
169
Appendix to the Sustainability Statement
180
Shares and shareholders
190
Share details
190
Shareholders
193
Articles of Association
194
Risk factors
196
Significant subsequent events
199
Key ratios
200
Alternative performance measures
201
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Nokia in 2024
Business description
Nokia Corporation is a public limited liability company
incorporated and domiciled in Helsinki, Finland. Nokia Corporation
is the parent company (Parent Company or Parent) for all its
subsidiaries (Nokia or the Group).
At Nokia, we create technology that helps the world act
together. We provide mobile, fixed and cloud network solutions
that enable critical networks for communications service
providers, enterprise verticals and hyperscalers. Our portfolio
of products, services and licensing opportunities helps
accelerate digitalization to address global sustainability,
productivity and accessibility challenges. We have customers in
more than 100 countries around the world and operations in
Europe, the Middle East & Africa, Greater China, North America,
Asia-Pacific and Latin America.
The shares of Nokia Corporation are listed on the Nasdaq
Helsinki Stock Exchange, the New York Stock Exchange and the
Euronext Paris Stock Exchange.
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Business description
Nokia in 2024
Board’s review 2024
Geopolitical tensions and macroeconomic challenges continued
to impact our operating environment in 2024 even though
there were some signs of moderation in the form of stabilizing
inflation and interest rates. The ongoing volatility in our
operating environment underscores the need to remain agile
and take proactive action to positively shape our markets.
In 2024, Nokia took many steps to ensure it could best serve
its customers and position the business for new opportunities.
We continued to invest over EUR 4 billion annually in R&D to
strengthen our technology leadership. We also continued to
make strategic investments in growth areas. For instance, the
acquisition of Infinera, which closed in February 2025, and the
acquisition of Fenix improve Nokia’s offer and position with data
center and defense customers respectively, and the divestments
of certain parts of the portfolio, including Submarine Networks,
enable a closer focus on core areas.
Overall, in 2024 Nokia continued to make good progress
in strengthening its position across CSP markets and in
repositioning itself for growth opportunities in new areas,
including data centers, private wireless and industrial edge,
and defense.
Seizing the opportunities of AI, cloud and
digitalization
Nokia’s renewed focus on technology leadership in recent
years sees the company well positioned to capitalize on the
opportunities the AI era is creating. Its products and solutions
are central to AI, cloud computing and industrial digitalization.
These three critical – and intertwined – technological trends can
help improve productivity, economic growth, public services,
safety and sustainability. But for that to happen, the underlying
networks that underpin AI, cloud and digitalization need to
evolve to become more flexible, automated, intelligent and
programmable. This, in turn, will create growth opportunities
for Nokia and its customers and partners.
The Board welcomed Nokia’s achievements in leading this
network evolution in 2024: pushing the boundaries of
broadband, IP and optical networks; pioneering new Cloud RAN
and AI-RAN solutions; leading the industry on 5G standalone
core, programmable networks and APIs; strengthening its
intellectual property and patent portfolio; and making new
technological breakthroughs, including the world’s first
immersive voice and audio call. In addition, the award-winning
Nokia Bell Labs remained at the forefront of 6G, AI and
quantum innovation.
The Board believes that Nokia’s continued excellence in
technological innovation will be crucial in repositioning the
company for growth and in seizing the opportunities that the
AI era is creating.
The Board’s work in 2024
The 2024 Annual General Meeting (AGM) took place in
Helsinki on 3 April 2024. We were delighted that approximately
78 000 shareholders, representing approximately 3 305 million
shares and approximately 59% of all shares and votes,
were represented at the meeting. The AGM approved all the
proposals of the Board and elected 10 members to the Board,
including one new member: Mike McNamara. We were pleased
to see the high number of votes cast as well as the strong
shareholder support received for the Board’s proposals.
During 2024 the Board held 20 meetings, 12 of which were in-
person or via videoconferencing. The Board’s meetings focused
on the following strategic priorities for Nokia: growing its CSP
business faster than the market, expanding the share of
enterprise business, actively managing its portfolio, securing
the business longevity of Nokia Technologies, and building new
business models. In parallel, the Board focused on the enablers
of those priorities, including digitalization and long-term research.
In April 2024, the Board of Directors established a new
Strategy Committee, adding a fifth committee to the four
existing ones: the Audit, Corporate Governance and
Nomination, Personnel, and Technology committees. During
the year, the committees were effective in supporting the
Board’s work, with a total of 27 meetings held. ESG matters
continued to be an integral part of the committees’ activities in
their respective areas of responsibility, with a focus on human
capital, compliance, security, energy efficiency, climate and
sustainability reporting.
The Corporate Governance and Nomination Committee
continued to work on the succession planning and renewal
of the Board, and the proposal to the AGM 2025 includes
two new Board member candidates: Pernille Erenbjerg and
Timo Ihamuotila.
Leadership transition and looking ahead
In February 2025, Nokia announced a leadership transition with
Pekka Lundmark stepping down and Justin Hotard becoming
President and CEO of Nokia from 1 April.
The Board would like to thank Lundmark for his significant
contributions to Nokia – he will leave with our highest respect.
The planning for this leadership transition was initiated when
Lundmark indicated to the Board in spring 2024 that he would
like to consider moving on from executive roles when the
repositioning of the business was in a more advanced stage,
and when the right successor had been identified. Now, both
of those conditions have been met, and he has decided to
step down.
Lundmark joined at a difficult time in Nokia’s history. Under his
tenure, Nokia has re-established its technology leadership in
5G radio networks and built a strong position in cloud-native
core networks. Network Infrastructure has delivered growth
and significant profit improvement, and Nokia has secured the
longevity of its patent licensing business. At the same time,
Nokia has built strong foundations in new growth areas.
The Board believes Hotard has the strategic insight, vision,
leadership and value creation mindset to take Nokia’s
transformation journey further. We look forward to working
with him to accelerate Nokia’s growth.
We would also like to express our gratitude to Nokia’s
employees for their commitment in ensuring that Nokia
delivered for its customers, partners and shareholders.
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Board’s review 2024
Nokia in 2024
Selected financial data
The below table presents selected financial and other measures for the Nokia Group as of and for the financial years ended on 31 December 2024, 2023 and 2022. The information has been
derived from our consolidated financial statements prepared in accordance with IFRS Accounting Standards.
From the consolidated income statement
Net sales
19 220
21 138
23 761
Operating profit
1 999
1 661
2 299
% of net sales
10.4%
7.9 %
9.7 %
Profit before tax
2 091
1 469
2 169
Profit from continuing operations
1 711
649
4 202
(Loss)/profit from discontinued operations
(427)
30
57
Profit for the year
1 284
679
4 259
From the consolidated statement of financial position
Non-current assets
21 162
21 694
22 677
Current assets
17 987
18 087
20 266
Assets held for sale
—
79
—
Total assets
39 149
39 860
42 943
Total shareholders' equity
20 657
20 537
21 333
Non-controlling interests
90
91
93
Total equity
20 747
20 628
21 426
Interest-bearing liabilities(1)
3 887
4 191
4 477
Lease liabilities(1)
863
997
1 042
Provisions(1)
1 228
1 262
1 435
Other liabilities(1)
12 424
12 782
14 563
Total shareholders’ equity and liabilities
39 149
39 860
42 943
Other information
Research and development expenses(2)
(4 512)
(4 277)
(4 503)
% of net sales
(23.5) %
(20.2) %
(19.0) %
Capital expenditure(3)
(472)
(652)
(601)
% of net sales
(2.5) %
(3.1) %
(2.5) %
Personnel expenses(2)
7 563
7 294
7 732
Average number of employees(2)
78 434
84 795
85 101
Order backlog, EUR billion(4)
20.0
22.0
19.5
EURm (except for percentage and personnel data)
2024
2023
2022
Key financial indicators and ratios
Earnings per share attributable to equity holders of the parent
Basic earnings per share, EUR
Continuing operations
0.31
0.11
0.75
Profit for the year
0.23
0.12
0.76
Diluted earnings per share, EUR
Continuing operations
0.31
0.11
0.74
Profit for the year
0.23
0.12
0.75
Proposed dividend per share, EUR(5)
0.14
0.13
0.12
Return on capital employed %(3)
9.3%
6.6 %
9.5 %
Return on shareholders’ equity %(3)
6.2%
3.2 %
22.0 %
Equity ratio %(3)
53.0%
51.8 %
49.9 %
Net debt to equity (gearing) %(3)
(23.4)%
(21.0) %
(22.2) %
Cash and cash equivalents
6 623
6 234
5 467
Total cash and interest-bearing financial investments(3)
8 741
8 514
9 244
Net cash and interest-bearing financial investments(3)
4 854
4 323
4 767
Net cash flows from operating activities
2 493
1 317
1 474
Free cash flow(3)
2 021
665
873
EURm (except for percentage and personnel data)
2024
2023
2022
(1)
Includes both current and non-current liabilities in the consolidated statement of financial position.
(2)
Presented for continuing operations.
(3)
Non-IFRS measures. For the definition and reconciliation of non-IFRS measures to the most directly comparable IFRS measures,
refer to the ”Alternative performance measures” section.
(4)
Order backlog includes EUR 1.7 billion in 2023 and EUR 1.6 billion in 2022 related to discontinued operations sold in 2024.
(5)
The Board of Directors proposes to the Annual General Meeting to be authorized to decide in its discretion on the distribution of
an aggregate maximum of EUR 0.14 per share as dividend from the retained earnings and/or as assets from the reserve for
invested unrestricted equity.
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Selected financial data
Nokia in 2024
Operating and financial review
The financial information included in this “Operating and financial review” section as of and for the years ended 31 December 2024 and 2023 has been derived from, and should be read in
conjunction with, our consolidated financial statements included in this report.
Results of operations
This “Results of operations” section discusses the results of our continuing operations and
discontinued operations. Discontinued operations include the results of the Submarine Networks
business which was sold to the French state in 2024.
Cost savings program
On 19 October 2023, Nokia announced actions being taken across business groups to address
the challenging market environment that the company faced. The company will reduce its cost
base and increase operational efficiency while protecting its R&D capacity and commitment to
technology leadership.
Nokia targets to lower its cost base on a gross basis (i.e. before inflation) by between
EUR 800 million and EUR 1 200 million by the end of 2026 compared to 2023, assuming on-
target variable pay in both periods. This represents a 10-15% reduction in personnel expenses.
The program is expected to lead to a 72 000–77 000 employee organization compared to
the 86 000 employees Nokia had when the program was announced. The headcount figures
represent the originally planned headcount targets and do not take into consideration the
completed divestment of Submarine Networks or planned divestments or acquisitions.
Actual headcount at 31 December 2024 was 75 600. The actual headcount reflects workforce
reductions from the disposal of Submarine Networks which were not factored into the target
workforce when the program was announced. The headcount at 31 December 2024 would have
been 77 600 had Nokia not disposed of Submarine Networks.
The program is expected to deliver savings on a net basis but the magnitude will depend on
inflation. The cost savings are expected to primarily be achieved in Mobile Networks, Cloud and
Network Services and Nokia’s corporate functions. One-time restructuring charges and cash
outflows of the program are expected to be similar to the annual cost savings achieved.
The current plan envisages achieving gross cost savings of EUR 1 000 million within the
2024–2026 program although this remains subject to change depending on the evolution of
end market demand. This includes the expected gross cost savings along with the associated
restructuring charges and cash outflows for the program. Nokia expects approximately 70% of
the savings to be achieved within operating expenses and 30% within cost of sales. By business
group, approximately 50-60% of the savings are expected to be achieved within Mobile
Networks, 30% within Cloud and Network Services and the remaining 10-20% between Network
Infrastructure and corporate center.
The prior cost savings program from 2021 to 2023 is now essentially completed.
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Nokia Group
For the year ended 31 December 2024 compared to the year ended 31 December 2023
The following table sets forth the results of Nokia’s continuing operations and the percentage of
net sales for the years indicated.
2024
2023
EURm
% of net sales
EURm
% of net sales
Change %
Net sales
19 220
100.0%
21 138
100.0%
(9)%
Cost of sales
(10 356)
(53.9)%
(12 592)
(59.6)%
(18)%
Gross profit
8 864
46.1%
8 546
40.4%
4%
Research and development
expenses
(4 512)
(23.5)%
(4 277)
(20.2)%
5%
Selling, general and
administrative expenses
(2 890)
(15.0)%
(2 878)
(13.6)%
0%
Other operating income and
expenses
537
2.8%
270
1.3%
99%
Operating profit
1 999
10.4%
1 661
7.9%
20%
Share of results of associated
companies and joint ventures
7
0.0%
(39)
(0.2)%
(118)%
Financial income and expenses
85
0.4%
(153)
(0.7)%
(156)%
Profit before tax
2 091
10.9%
1 469
6.9%
42%
Income tax (expense)/benefit
(380)
(2.0)%
(820)
(3.9)%
(54)%
Profit from continuing
operations
1 711
8.9%
649
3.1%
164%
(Loss)/profit from discontinued
operations
(427)
(2.2)%
30
0.1%
(1 523)%
Profit for the year
1 284
6.7%
679
3.2%
89%
Attributable to:
Equity holders of the parent
1 277
6.6%
665
3.1%
92%
Non-controlling interests
7
0.0%
14
0.1%
(50)%
Net sales
Net sales in 2024 were EUR 19 220 million, a decrease of EUR 1 918 million, or 9%, compared
to EUR 21 138 million in 2023. Net sales were impacted by challenging market conditions that
started in 2023 and persisted through the first half of 2024, despite improving order intake
trends in parts of the business. The overall net sales performance reflected declines across
Mobile Networks, Network Infrastructure and Cloud and Network Services. This was somewhat
offset by strong growth in Nokia Technologies which benefited from the signing of smartphone
license agreements throughout the year and related catch-up net sales.
The following table sets forth distribution of net sales by region for the years indicated.
EURm
2024
2023
Change %
Americas
6 276
6 779
(7)%
Latin America
895
1 046
(14)%
North America
5 381
5 733
(6)%
APAC
4 549
6 436
(29)%
Greater China
1 134
1 303
(13)%
India
1 373
2 842
(52)%
Rest of APAC
2 042
2 291
(11)%
EMEA
8 395
7 923
6%
Europe(1)
6 362
5 873
8%
Middle East & Africa
2 033
2 050
(1)%
Total
19 220
21 138
(9)%
(1)
All Nokia Technologies IPR and licensing net sales are allocated to Finland.
The following table sets forth distribution of net sales by customer type for the years indicated.
EURm
2024
2023
Change %
Communications service providers
15 085
17 652
(15)%
Enterprise
2 180
2 282
(4)%
Licensees
1 928
1 085
78%
Other(1)
27
119
(77)%
Total
19 220
21 138
(9)%
(1)
Includes net sales of Radio Frequency Systems (RFS), which had been managed as a separate entity and was substantially divested
in 2024, and certain other items, such as eliminations of inter-segment revenues. RFS net sales also include revenue from
communications service providers and enterprise customers.
Gross profit
Gross profit in 2024 was EUR 8 864 million, an increase of EUR 318 million, or 4%, compared
to EUR 8 546 million in 2023. The increase in gross profit was mainly attributable to the strong
net sales growth in Nokia Technologies. Gross profit in 2024 also reflected relatively stable
restructuring and associated charges, which amounted to EUR 155 million in 2024, compared
to EUR 151 million in 2023. In 2024, variable pay accruals within cost of sales were higher,
compared to 2023. Gross margin in 2024 was 46.1%, compared to 40.4% in 2023.
Operating expenses
Our research and development expenses in 2024 were EUR 4 512 million, an increase of
EUR 235 million, or 5%, compared to EUR 4 277 million in 2023. Research and development
expenses represented 23.5% of our net sales in 2024 compared to 20.2% in 2023. The increase
in research and development expenses was primarily attributable to higher variable pay accruals
in 2024, compared to 2023. Research and development expenses in 2024 also reflected higher
restructuring and associated charges, which amounted to EUR 135 million in 2024, compared
to EUR 61 million in 2023.
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Our selling, general and administrative expenses in 2024 were EUR 2 890 million, an increase
of EUR 12 million compared to EUR 2 878 million in 2023. Selling, general and administrative
expenses represented 15.0% of our net sales in 2024 compared to 13.6% in 2023. The slight
increase in selling, general and administrative expenses was mainly driven by higher variable pay
accruals in 2024, compared to 2023, as well as the negative impact from foreign exchange rate
fluctuations. This was somewhat offset by ongoing cost savings actions. The selling, general and
administrative expenses in 2024 also reflected relatively stable restructuring and associated
charges and amortization of acquired intangible assets. 2024 included restructuring and
associated charges of EUR 144 million, compared to EUR 138 million in 2023. In 2024, selling,
general and administrative expenses included amortization of acquired intangible assets of
EUR 294 million, compared to EUR 292 million in 2023.
Other operating income and expenses in 2024 was a net income of EUR 537 million, an
improvement of EUR 267 million, compared to a net income of EUR 270 million in 2023. The
improvement in other operating income and expenses was primarily driven by EUR 190 million
of income related to the divestment of associates, a positive fluctuation in loss allowances
on certain trade receivables and higher gains related to Nokia's venture fund investments,
somewhat offset by the negative impact from hedging, the EUR 49 million reversal of a
provision that benefited 2023 and lower sales of digital assets. Nokia’s venture fund
investments generated a benefit of approximately EUR 30 million in 2024 compared to
a loss of EUR 70 million in 2023. The impact of hedging was positive EUR 23 million in 2024,
compared to a positive impact of EUR 94 million in 2023.
Operating profit
Our operating profit in 2024 was EUR 1 999 million, an increase of EUR 338 million, compared
to an operating profit of EUR 1 661 million in 2023. The increase in operating profit was due
to higher gross profit and the net positive fluctuation in other operating income and expenses,
somewhat offset by higher research and development expenses and selling, general and
administrative expenses. Our operating margin in 2024 was 10.4%, compared to 7.9% in 2023.
Financial income and expenses
Financial income and expenses were a net income of EUR 85 million in 2024, a positive
fluctuation of EUR 238 million, compared to a net expense of EUR 153 million in 2023. The net
positive fluctuation in financial income and expenses mainly resulted from a EUR 208 million
positive fluctuation in net foreign exchange gains and losses, EUR 79 million of higher interest
income and EUR 30 million of lower interest expenses. These were partially offset by the
EUR 79 million fair value reduction of current equity investments in Vodafone Idea.
Profit before tax
Our profit before tax in 2024 was EUR 2 091 million, an increase of EUR 622 million compared
to EUR 1 469 million in 2023.
Income tax
Income taxes were a net expense of EUR 380 million in 2024, a net positive fluctuation of
EUR 440 million compared to a net expense of EUR 820 million in 2023. The positive fluctuation
in net income taxes was primarily attributable a non-recurring tax expense of EUR 392 million
related to an internal operating model change that led to a remeasurement of a deferred tax
asset that negatively impacted 2023. For more details on these items, please refer to Note 2.5.
Income taxes in our consolidated financial statements.
Profit from continuing operations
The profit from continuing operations in 2024 was EUR 1 711 million, an increase of
EUR 1 062 million, compared to a profit of EUR 649 million in 2023. The change was due to
the higher operating profit, the lower income tax expenses and the net positive fluctuation
in financial income and expenses.
Our EPS from continuing operations in 2024 was EUR 0.31 (basic) and EUR 0.31 (diluted)
compared to EUR 0.11 (basic) and EUR 0.11 (diluted) in 2023.
Loss/profit from discontinued operations
The loss from discontinued operations in 2024 was EUR 427 million, a change of EUR 457 million,
compared to a profit of EUR 30 million in 2023. For more detailed discussion of results of
discontinued operations, refer to Discontinued operations section below.
Profit for the year
The profit for the year in 2024 was EUR 1 284 million, an increase of EUR 605 million,
compared to a profit of EUR 679 million in 2023. The change in profit for the year was primarily
due to the higher profit from continuing operations, somewhat offset by higher losses from
discontinued operations.
Our EPS in 2024 was EUR 0.23 (basic) and EUR 0.23 (diluted) compared to EUR 0.12 (basic) and
EUR 0.12 (diluted) in 2023.
Order backlog
At 31 December 2024, the order backlog amounted to EUR 20.0 billion compared to
EUR 22.0 billion, of which EUR 1.7 billion related to discontinued operations sold in 2024, at 31
December 2023. The slight decline in order backlog year-on-year primarily related to the timing
of multi-year orders within Mobile Networks while order backlog increased within Network
Infrastructure. Management has estimated that the order backlog will be recognized as revenue
as follows:
2024
2023
Within 1 year
53%
51%
2-3 years
27%
30%
More than 3 years
20%
19%
Total
100%
100%
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Discontinued operations
For the year ended 31 December 2024 compared to the year ended 31 December 2023
The following table sets forth the results for discontinued operations, and the percentage of
net sales for the years indicated. On 27 June 2024, Nokia announced it had entered into a put
option agreement to sell its wholly owned subsidiary Alcatel Submarine Networks (ASN) to the
French State. As a result, Nokia classified the Submarine Networks business as a discontinued
operation and recast the comparative amounts accordingly. The sale was completed on
31 December 2024.
2024
2023
EURm
% of net sales
EURm
% of net sales
Change %
Net sales
1 059
100.0%
1 120
100.0%
(5)%
Expenses
(989)
(93.4)%
(1 090)
(97.3)%
(9)%
Operating profit
70
6.6%
30
2.7%
133%
Financial income and expenses
(7)
(0.7)%
5
0.4%
(240)%
Impairment loss recognized on the
remeasurement to fair value less costs to
sell
(514)
(48.5)%
—
0.0%
0%
Gain on sale
29
2.7%
—
0.0%
0%
(Loss)/profit from discontinued
operations before tax
(422)
(39.8)%
35
3.1%
(1 306)%
Income tax expense
(5)
(0.5)%
(5)
(0.4)%
0%
(Loss)/profit from discontinued
operations(1)
(427)
(40.3)%
30
2.7%
(1 523)%
(1)
Loss/profit from discontinued operations is attributable to the equity holders of the parent in its entirety.
Net sales
Discontinued operations net sales in 2024 were EUR 1059 million, a decrease of EUR 61 million,
or 5%, compared to EUR 1 120 million in 2023.
Operating profit
Discontinued operations operating profit in 2024 was EUR 70 million, an increase of EUR 40 million,
compared to an operating profit of EUR 30 million in 2023. The improved operating profit mainly
reflected lower overall expenses in 2024 compared to 2023, particularly within cost of sales.
Loss/profit before tax
Discontinued operations loss before tax in 2024 was EUR 422 million, a decrease of
EUR 457 million, compared to a profit before tax of EUR 35 million in 2023. This mainly reflected
an impairment loss booked in 2024 related to the difference between the carrying amount of
the Submarine Networks business and the expected proceeds from the sale of the business.
This was somewhat offset by the gain related to the sale of the business.
Loss/profit
Discontinued operations loss in 2024 was EUR 427 million, a change of EUR 457 million
compared to a profit of EUR 30 million in 2023. EPS from discontinued operations in 2024 was
negative EUR 0.08 (basic) and negative EUR 0.08 (diluted) compared to EUR 0.01 (basic) and
EUR 0.01 (diluted) in 2023.
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Nokia in 2024
Results of segments
In 2024, we had four operating and reportable segments for financial reporting purposes:
(1) Network Infrastructure, (2) Mobile Networks, (3) Cloud and Network Services and (4) Nokia
Technologies. We also present segment-level information for Group Common and Other. The
amounts presented in this “Results of segments” section for each reportable segment and
Group Common and Other represent the amounts reported to the management for the purpose
of assessing performance and making decisions about resource allocation. Certain costs and
revenue adjustments are not allocated to the segments for this purpose. For more information
on our operational and reporting structure as well as the reconciliation of reportable segment
measures to those of the Nokia Group, refer to Note 2.2. Segment information, in the
consolidated financial statements.
Network Infrastructure
For the year ended 31 December 2024 compared to the year ended 31 December 2023
The following table sets forth the segment operating results and the percentage of net sales for
the years indicated.
2024
2023
EURm
% of net sales
EURm
% of net sales
Change %
Net sales(1)
6 518
100.0%
6 917
100.0%
(6)%
Cost of sales
(3 781)
(58.0)%
(4 007)
(57.9)%
(6)%
Gross profit
2 737
42.0%
2 910
42.1%
(6)%
Research and development expenses
(1 207)
(18.5)%
(1 212)
(17.5)%
0%
Selling, general and administrative expenses
(815)
(12.5)%
(775)
(11.2)%
5%
Other operating income and expenses
46
0.7%
93
1.3%
(51)%
Operating profit
761
11.7%
1 016
14.7%
(25)%
(1)
In 2024, net sales include IP Networks net sales of EUR 2 583 million, Optical Networks net sales of EUR 1 636 million and Fixed
Networks net sales of EUR 2 299 million. In 2023, net sales include IP Networks net sales of EUR 2 606 million, Optical Networks
net sales of EUR 1 942 million and Fixed Networks net sales of EUR 2 369 million.
Net sales
Network Infrastructure net sales in 2024 were EUR 6 518 million, a decrease of EUR 399 million,
or 6%, compared to EUR 6 917 million in 2023. The decrease reflected declines across all
businesses but did show signs of improving market demand through the year.
IP Networks net sales were EUR 2 583 million in 2024, a decrease of EUR 23 million, or 1%,
compared to EUR 2 606 million in 2023. Net sales in IP Networks decreased in 2024, as growth in
the Americas region, particularly in North America, was more than offset by declines elsewhere.
IP Networks also saw continued growth with both webscale and enterprise customers.
Optical Networks net sales were EUR 1 636 million in 2024, a decrease of EUR 306 million,
or 16%, compared to EUR 1 942 million in 2023. Net sales declined as as the pace of the optical
market recovery continues to be slower than the rest of the Network Infrastructure markets.
From a regional perspective, net sales declined across regions, with particular weakness in
Europe in the EMEA region and India within the APAC region.
Fixed Networks net sales were EUR 2 299 million in 2024, a decrease of EUR 70 million, or 3%,
compared to EUR 2 369 million in 2023. The decline in Fixed Networks net sales reflected
declines in the EMEA region, particularly in Europe while North America, within the Americas
region declined slightly as customer spending improved through the year. This was somewhat
offset by growth in India, with the APAC region, as fixed wireless access deployments ramped.
The following table sets forth distribution of net sales by region for the years indicated.
EURm
2024
2023
Change %
Americas
2 726
2 813
(3)%
APAC
1 426
1 580
(10)%
EMEA
2 366
2 524
(6)%
Total
6 518
6 917
(6)%
Gross profit
Network Infrastructure gross profit in 2024 was EUR 2 737 million, a decrease of EUR 173 million,
or 6%, compared to EUR 2 910 million in 2023. Network Infrastructure gross margin in 2024 was
42.0%, compared to 42.1% in 2023. Network Infrastructure gross profit declined while gross
margin was stable, largely reflecting favorable mix shift despite the decline in net sales.
Operating expenses
Network Infrastructure research and development expenses were EUR 1 207 million in 2024,
a decrease of EUR 5 million, or flat compared to EUR 1 212 million in 2023. The slight decrease
in research and development expenses largely reflected the impact of foreign exchange
rate fluctuations.
Network Infrastructure selling, general and administrative expenses were EUR 815 million in
2024, an increase of EUR 40 million, or 5%, compared to EUR 775 million in 2023. The increase
in Network Infrastructure selling, general and administrative expenses largely reflected increased
expenses and higher variable pay accruals, somewhat offset by the impact of foreign exchange
rate fluctuations.
Network Infrastructure other operating income and expenses was an income of EUR 46 million
in 2024, a change of EUR 47 million compared to an income of EUR 93 million in 2023. The
change in other operating income and expenses was mainly due to the lower proceeds from
the sale of digital assets and a negative fluctuation related to foreign exchange hedging.
Operating profit
Network Infrastructure operating profit was EUR 761 million in 2024, a decrease of EUR 255 million,
or 25%, compared to EUR 1 016 million in 2023. Network Infrastructure operating margin in
2024 was 11.7%, compared to 14.7% in 2023.
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Nokia in 2024
Mobile Networks
For the year ended 31 December 2024 compared to the year ended 31 December 2023
The following table sets forth the segment operating results and the percentage of net sales for
the years indicated.
2024
2023
EURm
% of net sales
EURm
% of net sales
Change %
Net sales
7 725
100.0%
9 797
100.0%
(21)%
Cost of sales
(4 584)
(59.3)%
(6 364)
(65.0)%
(28)%
Gross profit
3 141
40.7%
3 433
35.0%
(9)%
Research and development expenses
(2 154)
(27.9)%
(2 010)
(20.5)%
7%
Selling, general and administrative
expenses
(727)
(9.4)%
(822)
(8.4)%
(12)%
Other operating income and expenses
149
1.9%
122
1.2%
22%
Operating profit
409
5.3%
723
7.4%
(43)%
Net sales
Mobile Networks net sales in 2024 were EUR 7 725 million, a decrease of EUR 2 072 million, or
21%, compared to EUR 9 797 million in 2023. The decline in Mobile Networks net sales in 2024
was mainly driven by weakness in India, within the APAC region, as the pace of 5G deployments
moderated in India after significant investments in 2023. Net sales in the America's region also
declined primarily due to North America, where demand remained weak due to current low levels
of deployment activity along with lower market share at one North American customer. In the
second quarter, Nokia resolved its outstanding negotiation with AT&T, who decided to proceed
with an alternative RAN vendor for commercial reasons. Part of this resolution led to a benefit
of EUR 150 million of accelerated revenue recognition.
The following table sets forth distribution of net sales by region for the years indicated.
EURm
2024
2023
Change %
Americas
2 365
2 618
(10)%
APAC
2 461
4 184
(41)%
EMEA
2 899
2 995
(3)%
Total
7 725
9 797
(21)%
Gross profit
Mobile Networks gross profit in 2024 was EUR 3 141 million, a decrease of EUR 292 million, or
9%, compared to EUR 3 433 million in 2023. Mobile Networks gross margin in 2024 was 40.7%,
compared to 35.0% in 2023. The decrease in Mobile Networks gross profit was mainly driven by
lower net sales and higher variable pay accruals. The increase in gross margin largely reflected
favorable regional mix and the accelerated recognition of net sales related to a customer
resolution.
Operating expenses
Mobile Networks research and development expenses were EUR 2 154 million in 2024, an
increase of EUR 144 million, or 7% compared to EUR 2 010 million in 2023. The higher research
and development expenses mainly reflected underlying cost reductions which were offset by
higher variable pay accruals.
Mobile Networks selling, general and administrative expenses were EUR 727 million in 2024,
a decrease of EUR 95 million, or 12%, compared to EUR 822 million in 2023. The decrease in
Mobile Networks selling, general and administrative expenses mainly reflected underlying cost
reductions which were partially offset by higher variable pay accruals.
Mobile Networks other operating income and expenses was an income of EUR 149 million in
2024, a change of EUR 27 million compared to an income of EUR 122 million in 2023. The change
in other operating income and expenses was primarily due to the net positive fluctuation in the
amount of loss allowances on trade receivables somewhat offset by lower proceeds from the
sale of digital assets and a negative fluctuation related to foreign exchange hedging.
Operating profit
Mobile Networks operating profit was EUR 409 million in 2024, a decrease of EUR 314 million,
compared to EUR 723 million in 2023. Mobile Networks operating margin was 5.3% in 2024
compared to 7.4% in 2023.
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Nokia in 2024
Cloud and Network Services
For the year ended 31 December 2024 compared to the year ended 31 December 2023
The following table sets forth the segment operating results and the percentage of net sales for
the years indicated.
2024
2023
EURm
% of net sales
EURm
% of net sales
Change %
Net sales
3 022
100.0%
3 220
100.0%
(6)%
Cost of sales
(1 787)
(59.1)%
(1 944)
(60.4)%
(8)%
Gross profit
1 235
40.9%
1 276
39.6%
(3)%
Research and development expenses
(556)
(18.4)%
(577)
(17.9)%
(4)%
Selling, general and administrative
expenses
(474)
(15.7)%
(494)
(15.3)%
(4)%
Other operating income and expenses
44
1.5%
50
1.6%
(12)%
Operating profit
249
8.2%
255
7.9%
(2)%
Net sales
Cloud and Network Services net sales in 2024 were EUR 3 022 million, a decrease of
EUR 198 million, or 6%, compared to EUR 3 220 million in 2023. In addition to the slight negative
impact from foreign exchange fluctuations, net sales in Cloud and Network Services reflected the
impact of the disposal of the Device Management and Service Management Platform businesses
during 2024, as well as declines in Cloud and Cognitive Services and Core Networks. This was
slightly offset by growth in Enterprise Campus Edge. Net sales declined less than 1% due to
foreign exchange rate fluctuations in 2024.
The following table sets forth distribution of net sales by region for the years indicated.
EURm
2024
2023
Change %
Americas
1 184
1 306
(9)%
APAC
649
649
0%
EMEA
1 189
1 265
(6)%
Total
3 022
3 220
(6)%
Gross profit
Cloud and Network Services gross profit in 2024 was EUR 1 235 million, a decrease of
EUR 41 million, or 3%, compared to EUR 1 276 million in 2023. Cloud and Network Services gross
margin in 2024 was 40.9%, compared to 39.6% in 2023. Gross profit declined mainly as a result
of lower net sales, while gross margin improved reflecting improvements in the cost of delivery
and favorable business and regional mix.
Operating expenses
Cloud and Network Services research and development expenses were EUR 556 million in 2024,
a decrease of EUR 21 million or 4%, compared to EUR 577 million in 2023. The decrease in
research and development expenses largely reflected continued discipline on cost control
and the impact of the previously mentioned disposal, somewhat offset by higher variable
pay accruals.
Cloud and Network Services selling, general and administrative expenses were EUR 474 million
in 2024, a decrease of EUR 20 million, or 4%, compared to EUR 494 million in 2023. The
decrease in Cloud and Network Services selling, general and administrative expenses largely
reflected continued discipline on cost control, somewhat offset by higher variable pay accruals.
Cloud and Network Services other operating income and expenses was an income of
EUR 44 million in 2024, a change of EUR 6 million compared to an income of EUR 50 million
in 2023.
Operating profit
Cloud and Network Services operating profit was EUR 249 million in 2024, a decrease of
EUR 6 million, compared to EUR 255 million in 2023. Cloud and Network Services operating
margin in 2024 was 8.2% compared to 7.9% in 2023.
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Nokia in 2024
Nokia Technologies
For the year ended 31 December 2024 compared to the year ended 31 December 2023
The following table sets forth the segment operating results and the percentage of net sales for
the years indicated.
2024
2023
EURm
% of net sales
EURm
% of net sales
Change %
Net sales
1 928
100.0%
1 085
100.0%
78%
Cost of sales
(2)
(0.1)%
—
0.0%
0%
Gross profit
1 926
99.9%
1 085
100.0%
78%
Research and development expenses
(250)
(13.0)%
(224)
(20.6)%
12%
Selling, general and administrative
expenses
(163)
(8.5)%
(140)
(12.9)%
16%
Other operating income and expenses
1
0.1%
13
1.2%
(92)%
Operating profit
1 514
78.5%
734
67.6%
106%
Net sales
Nokia Technologies net sales in 2024 were EUR 1 928 million, an increase of EUR 843 million, or
78%, compared to EUR 1 085 million in 2023. The strong growth in Nokia Technologies net sales
was primarily due to the signing of smartphone license agreements with OPPO, vivo and other
licensees. Some of these agreements led to the recognition of catch-up net sales through the
course of the year. Nokia Technologies also continued to make good progress in expanding to
new areas such as automotive, consumer electronics, IoT and multimedia.
Gross profit
Nokia Technologies gross profit in 2024 was EUR 1 926 million, an increase of EUR 841 million,
or 78%, compared to EUR 1 085 million in 2023. The higher gross profit in Nokia Technologies
was due to higher net sales.
Operating expenses
Nokia Technologies research and development expenses in 2024 were EUR 250 million, an
increase of EUR 26 million, or 12%, compared to EUR 224 million in 2023. The increase in Nokia
Technologies research and development expenses was primarily due to higher investments to
drive the creation of intellectual property and higher variable pay accruals.
Nokia Technologies selling, general and administrative expenses in 2024 were EUR 163 million,
an increase of EUR 23 million, or 16%, compared to EUR 140 million in 2023. The increase in
Nokia Technologies selling, general and administrative expenses was primarily due to a
combination of higher investments to drive the creation of intellectual property, licensing-
related costs and variable pay accruals.
Nokia Technologies other operating income and expenses in 2024 was an income of EUR 1 million,
a change of EUR 12 million compared to an income of EUR 13 million in 2023. The change in
other operating income and expenses was primarily related to the reversal of loss allowances
of certain trade receivables which benefited 2023 and was not repeated in 2024.
Operating profit
Nokia Technologies operating profit in 2024 was EUR 1 514 million, an increase of EUR 780
million, or 106%, compared to an operating profit of EUR 734 million in 2023. The increase in
Nokia Technologies operating profit was primarily related to higher net sales, partially offset by
higher operating expenses. Nokia Technologies operating margin in 2024 was 78.5% compared
to 67.6% in 2023.
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Group Common and Other
For the year ended 31 December 2024 compared to the year ended 31 December 2023
The following table sets forth the operating results for Group Common and Other, and the
percentage of net sales for the years indicated.
2024
2023
EURm
% of net sales
EURm
% of net sales
Change %
Net sales
34
100.0%
130
100.0%
(74)%
Cost of sales
(29)
(85.3)%
(136)
(104.6)%
(79)%
Gross profit
5
14.7%
(6)
(4.6)%
(183)%
Research and development expenses
(131)
(385.3)%
(120)
(92.3)%
9%
Selling, general and administrative
expenses
(244)
(717.6)%
(217)
(166.9)%
12%
Other operating income and expenses
56
164.7%
(48)
(36.9)%
(217)%
Operating loss
(314)
(923.5)%
(391)
(300.8)%
(20)%
Net sales
Group Common and Other net sales in 2024 were EUR 34 million, a decrease of EUR 96 million, or
74%, compared to EUR 130 million in 2023. The decrease in Group Common and Other net sales
was related to reduced net sales from Radio Frequency Systems, mainly driven by the divested
business carved out during 2023.
Gross profit
Group Common and Other gross profit in 2024 was positive EUR 5 million, compared to negative
EUR 6 million in 2023. Group Common and Other gross margin in 2024 was 14.7% compared to
negative 4.6% in 2023.
Operating expenses
Group Common and Other research and development expenses in 2024 were EUR 131 million,
an increase of EUR 11 million, or 9%, compared to EUR 120 million in 2023.
Group Common and Other selling, general and administrative expenses in 2024 were
EUR 244 million, an increase of EUR 27 million, or 12%, compared to EUR 217 million in 2023.
In 2024, variable pay accruals within Group Common and Other selling, general and
administrative expenses were higher, compared to 2023.
Group Common and Other other operating income and expense in 2024 was an income
of EUR 56 million, a net positive fluctuation of EUR 104 million compared to an expense of
EUR 48 million in 2023. The net positive fluctuation in 2024 was primarily related to Nokia’s
venture fund investments, which generated a benefit of approximately EUR 30 million in 2024,
compared to a loss of approximately EUR 70 million in 2023.
Operating loss
Group Common and Other operating loss in 2024 was EUR 314 million, an improvement of
EUR 77 million, compared to an operating loss of EUR 391 million in 2023. The improvement in
Group Common and Other operating loss was primarily attributable to the net positive fluctuation
in other operating income and expenses driven by Nokia’s venture fund investments.
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Liquidity and capital resources
Financial position
Cash and cash equivalents
At 31 December 2024, our cash and cash equivalents equaled EUR 6 623 million, an increase
of EUR 389 million compared to EUR 6 234 million as of 31 December 2023. The increase was
primarily attributable to net cash inflow from operating activities of EUR 2 493 million, proceeds
from disposal of shares in associated companies of EUR 259 million, net cash inflow related to
interest-bearing financial investments of EUR 214 million and proceeds from sale of property,
plant and equipment and intangible assets of EUR 97 million, offset by dividends of EUR 723
million, share repurchases of EUR 680 million, capital expenditure of EUR 472 million, net cash
outflow related to long-term borrowings of EUR 361 million, payment of principal portion of
lease liabilities of EUR 233 million and net cash outflow related to other financial assets of
EUR 210 million.
Total cash and interest-bearing financial investments(1)
At 31 December 2024, our total cash and interest-bearing financial investments(1) equaled
EUR 8 741 million, an increase of EUR 227 million, compared to EUR 8 514 million as of
31 December 2023. The increase was primarily attributable to net cash inflow from operating
activities of EUR 2 493 million, offset by dividends of EUR 723 million, share repurchases of
EUR 680 million, capital expenditure of EUR 472 million and net cash outflow related to
long-term borrowings of EUR 361 million.
Net cash and interest-bearing financial investments(1)
At 31 December 2024, our net cash and interest-bearing financial investments(1) equaled
EUR 4 854 million, an increase of EUR 531 million, compared to EUR 4 323 million as of
31 December 2023. The increase was mainly attributable to net cash inflow from operating
activities of EUR 2 493 million and proceeds from disposal of shares in associated companies
of EUR 259 million, offset by dividends of EUR 723 million, share repurchases of EUR 680 million,
capital expenditure of EUR 472 million and payment of the principal portion of the lease liabilities
of EUR 233 million.
(1)
Non-IFRS measures. For the definition and reconciliation of non-IFRS measures to the most directly comparable IFRS measures,
refer to the “Alternative performance measures” section.
Cash flow
Operating activities
The cash inflow from operating activities in 2024 was EUR 2 493 million, an increase of
EUR 1 176 million compared to a cash inflow of EUR 1 317 million in 2023. The increase was
primarily attributed to an increase of EUR 203 million in net profit, adjusted for non-cash items,
which equaled EUR 3 441 million compared to EUR 3 238 million in 2023, and a decrease in cash
tied-up to net working capital of EUR 569 million in 2024 compared to EUR 1 282 million cash
tied-up in 2023. The primary drivers for the decrease in cash tied-up to net working capital were
related to a decrease in liabilities of EUR 609 million compared to a decrease of EUR 2 029 million
in 2023 and an increase in receivables of EUR 364 million compared to a decrease in
receivables of EUR 304 million in 2023. This was partly offset by a decrease in inventories of
EUR 404 million compared to a decrease of EUR 443 million in 2023. The increase in receivables
during 2024 was primarily driven by account receivables. The decrease in liabilities during 2024
was primarily due to restructuring and associated cash outflows, a decrease in trade payables
and contract liabilities, partially offset by an increase in liabilities related to variable pay.
In 2024, the cash inflow from operating activities included paid taxes of EUR 342 million,
a decrease of EUR 234 million compared to EUR 576 million in 2023, interest received of
EUR 226 million compared to EUR 178 million in 2023 and interest paid of EUR 263 million
compared to EUR 241 million in 2023.
Investing activities
The cash outflow from investing activities was EUR 117 million in 2024, compared to a
EUR 1 043 million cash inflow in 2023. Cash outflow from investing activities was primarily
driven by cash outflow due to the capital expenditure of EUR 472 million in 2024 compared
to EUR 652 million in 2023 and cash outflow from other financial assets of EUR 210 million
compared to EUR 49 million in 2023. These were partially offset by cash inflows from disposal
of shares in associated companies of EUR 259 million, compared to EUR 8 million in 2023 and
net cash inflow of EUR 214 million of interest-bearing financial investments in 2024 compared
to net cash inflow of EUR 1 527 million in 2023.
Major items of capital expenditure in 2024 included investments in R&D equipment, test
equipment, hardware for telecommunication and cloud environment, repair or improvements
of sites, shipyards and vessels.
Financing activities
In 2024, the cash outflow from financing activities was EUR 2 003 million, compared to a
EUR 1 502 million cash outflow in 2023. The cash outflow was driven by dividend payments
of EUR 723 million, compared to EUR 621 million in 2023, share repurchases of EUR 680 million
compared to EUR 300 million in 2023, repayments of long-term borrowings of EUR 462 million
compared to EUR 798 million in 2023 and payments of the principal portion of lease liabilities of
EUR 233 million, compared to EUR 239 million in 2023. These were partially offset by proceeds
from long-term borrowings of EUR 101 million, compared to EUR 496 million in 2023.
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Nokia in 2024
Financial assets and debt
At 31 December 2024, our net cash and interest-bearing financial investments(1) equaled
EUR 4 854 million consisting of EUR 8 741 million in total cash and interest-bearing financial
investments(1), and EUR 3 887 million of long-term and short-term interest-bearing liabilities.
We hold our total cash and interest-bearing financial investments(1) predominantly in euro.
Our interest-bearing financial investments mainly include high-quality money market and fixed
income instruments with strict maturity limits and diversified counterparty risk limits. We also
have a EUR 1 412 million revolving credit facility available for liquidity purposes. The facility has
no financial covenants and remains undrawn.
At 31 December 2024, our interest-bearing liabilities consisted of EUR 292 million notes due
in 2025, EUR 500 million R&D loan from the European Investment Bank maturing in 2025,
EUR 83 million R&D loan from the Nordic Investment Bank with final maturity in 2025,
EUR 630 million notes due in 2026, USD 500 million notes due in 2027, EUR 500 million
notes due in 2028, USD 74 million notes due in 2028, USD 206 million notes due in 2029,
EUR 500 million notes due in 2031, EUR 100 million R&D loan from the Nordic Investment Bank
with final maturity in 2032, USD 500 million notes due in 2039, and EUR 105 million of other
liabilities. The EUR notes maturing in 2025, 2026, 2028 and 2031 as well as the USD notes
maturing in 2027 and 2039, are issued by Nokia Corporation, while the USD notes maturing in
2028 and 2029 are issued by Lucent Technologies Inc., a predecessor to Nokia of America
Corporation (Nokia’s wholly-owned subsidiary, formerly known as Alcatel-Lucent USA Inc.). The
loans from the Nordic Investment Bank and from the European Investment Bank are drawn by
Nokia Corporation. For more information on our interest-bearing liabilities, refer to Note 5.2.
Financial assets and liabilities, of our consolidated financial statements.
In June 2021, we exercised our option to extend the maturity date of the EUR 1 500 million
revolving credit facility. Subsequent to the extension, EUR 1 412 million of the facility has its
maturity in June 2026 and EUR 88 million of the facility matured in June 2024.
We consider that with EUR 8 741 million of total cash and interest-bearing financial investments(1)
and with our undrawn revolving credit facility, we have sufficient funds to satisfy our future
working capital needs, capital expenditure, R&D investments, structured finance, venture fund
commitments, acquisitions and debt service requirements, at least through 2025. We further
consider that with our current credit ratings of BBB- by S&P Global Ratings, Ba1 by Moody’s,
and BBB- by Fitch, we have access to the capital markets should any funding needs arise in 2025.
We aim to maintain investment grade credit ratings.
Off-balance sheet arrangements
There are no material off-balance sheet arrangements that have, or are reasonably likely to
have, a current or future effect on our financial condition, revenues or expenses, results of
operations, liquidity, capital expenditures or capital resources that are material to investors,
except for the purchase obligations and lease commitments, as well as guarantees and financing
commitments disclosed in Note 6.1. Commitments, contingencies and legal proceedings,
and in Note 5.4. Financial risk management, of our consolidated financial statements.
(1)
Non-IFRS measures. For the definition and reconciliation of non-IFRS measures to the most directly comparable IFRS measures,
refer to “Alternative performance measures” section.
Venture fund investments and commitments
We make financing commitments to a number of unlisted venture funds that make technology-
related investments. The majority of the investments are managed by NGP Capital, a global
venture capital firm backing exceptional entrepreneurs driving the convergence of the physical
and digital world.
As of 31 December 2024, our venture fund investments equaled EUR 865 million, compared
to EUR 784 million as of 31 December 2023. For more information on the fair value of our
venture fund investments, refer to Note 5.2. Financial assets and liabilities, of our consolidated
financial statements.
As of 31 December 2024, our venture fund commitments equaled EUR 306 million, compared
to EUR 381 million as of 31 December 2023. As a limited partner in venture funds, we are
committed to capital contributions and entitled to cash distributions according to the respective
partnership agreements and underlying fund activities. For more information on venture fund
commitments, refer to Note 6.1. Commitments, contingencies and legal proceedings, of our
consolidated financial statements.
Treasury Policy
Treasury activities are governed by the Nokia Treasury Policy approved by the President
and CEO within the authority granted by the Board of Directors and supplemented by operating
procedures approved by the CFO, covering specific areas such as foreign exchange risk, interest
rate risk, credit risk and liquidity risk. The objective of treasury’s liquidity and capital structure
management activities is to ensure that we have sufficient liquidity to go through unfavorable
periods without being severely constrained by the availability of funds to execute Nokia’s
business plans and implement Nokia’s long-term business strategy. We are risk-averse in our
treasury activities.
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Nokia in 2024
Foreign exchange impact
We are a company with global operations and net sales derived from various countries, invoiced
in various currencies. Therefore, our business and results from operations are exposed to
changes in exchange rates between the euro, our reporting currency, and other currencies,
such as the US dollar. The magnitude of foreign exchange exposures changes over time as a
function of our net sales and costs in different markets, as well as the prevalent currencies used
for transactions in those markets. Significant changes in exchange rates may also impact our
competitive position and related price pressures through their impact on our competitors.
To mitigate the impact of changes in exchange rates on our results, we hedge material net
foreign exchange exposures (net sales less costs in a currency) typically with a hedging horizon
of approximately 12 months. For the majority of these hedges, hedge accounting is applied to
reduce income statement volatility.
In 2024, Group net sales were mostly denominated in US dollars, euros and Chinese yuan and
total costs mostly in US dollars, euros, Chinese yuan and Indian rupee.
The average currency mix for Group net sales and total costs:
2024
2023
Currency
Net sales
Total costs
Net sales
Total costs
EUR
~25%
~30%
~25%
~30%
USD
~55%
~45%
~50%
~45%
CNY
~5%
~5%
~5%
~5%
INR
~0%
~5%
~5%
~5%
Other
~15%
~15%
~15%
~15%
Total
~100%
~100%
~100%
~100%
For the full year 2024 compared to the previous year, the US dollar was stronger against the
euro. The stronger US dollar in 2024 on a year-on-year basis had a slightly positive impact on
our net sales reported in euros. However, the stronger US dollar also contributed to slightly
higher costs of sales and had an approximately neutral impact on operating expenses on a year-
on-year basis. In total, before hedging, the stronger US dollar on a year-on-year basis had a
slightly positive effect on our operating profit in 2024.
For a discussion of the instruments used by us in connection with our hedging activities, refer to
Note 5.4. Financial risk management, of our consolidated financial statements. Refer also to the
“Risk factors” section.
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Sustainability Statement
Introduction
86
General information
87
Basis for preparation
87
Governance
89
Strategy
96
Impact, risk and opportunity management
108
Environmental information
110
Climate change (ESRS E1)
110
Resource use and circular economy (ESRS E5)
128
Disclosure under the European Union Taxonomy Regulation
137
Social information
146
Own workforce (ESRS S1)
146
Workers in the value chain (ESRS S2)
155
Affected communities (ESRS S3)
162
Consumers and end users (ESRS S4)
166
Governance information
169
Business conduct (ESRS G1)
169
Appendix to the Sustainability Statement
180
Reference table
180
List of data points that derive from other EU legislation
187
General information
page 87
Environmental
page 110
Social
page 146
Governance
page 169
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Introduction
Our approach to sustainability is built on our company’s
purpose – to create technology that helps the world act
together. Sustainability is integral to our technology
vision 2030, technology strategy as well as Nokia’s
business group product and operational strategies.
This Sustainability Statement is prepared for the first time
in accordance with the provisions of the newly applicable
EU Corporate Sustainability Reporting Directive and with
the requirements of the European Sustainability Reporting
Standards. The Statement reflects Nokia’s sustainability
performance, impacts, risks and opportunities across
environmental, social and governance dimensions. It is
building upon Nokia’s long-standing sustainability report,
People & Planet, as well as on its renewed assessment of
sustainability matters conducted through impact analysis
and stakeholder engagement.
Through this Sustainability Statement, Nokia attempts
to demonstrate its commitment to transparent and
responsible sustainability reporting, while also showcasing
its strategic approach to managing sustainability impacts.
Nokia acknowledges its role in global sustainability challenges
and opportunities, including climate change mitigation and
adaptation, social equity and responsible business practices.
The 2024 Sustainability Statement covers Nokia’s operations
across all geographical locations and includes relevant
information about our material value chain impacts, focusing
on sustainability topics most relevant to Nokia’s business
model and operational context while ensuring compliance
with mandatory disclosure requirements.
Nokia welcomes feedback from stakeholders as it continues
to improve and evolve its sustainability reporting practices.
The current document fulfills a dual purpose: ensuring
compliance with applicable reporting requirements, as well
as drive sustainability performance improvements and
stakeholder engagement across the entire organization
in a strategic manner.
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Introduction to 2024 Sustainability Statement
Nokia in 2024
By conducting this assessment of sustainability topics in accordance with the CSRD’s double materiality perspective, Nokia has identified areas requiring focused attention and reporting under
Climate change (E1),
Resource use and circular
economy (E5),
Own workforce (S1),
Workers in the value chain (S2),
Affected communities (S3),
Consumers and end-users (S4),
Business
conduct (G1)
These material topics are interconnected and
fundamentally interdependent, requiring an
integrated approach to sustainability
management and reporting, which ultimately
reflects on Nokia’s overall sustainability journey
and ensures a comprehensive coverage of its
performance and impacts.
General
information
Basis for preparation
87
Governance
89
Strategy
96
Impact, risk and opportunity management
108
Basis for preparation
General basis for preparation of the
Sustainability Statement
For the reporting year 2024, Nokia is preparing the
Sustainability Statement for the first time in accordance with
the requirements of the Corporate Sustainability Reporting
Directive 2022/2464/EU of the European Parliament and
of the Council (hereinafter “CSRD”) and requirements of the
Commission Delegated Regulation (EU) 2023/2772 of 31 July
2023 (hereafter the “Delegated Regulation”) as regards the
European Sustainability Reporting Standards (hereafter
“ESRS”). When referring to the various ESRS, the numbering in
the Delegated Regulation is used. Finland transposed these
requirements into national law on 21 December 2023, and they
are in effect for the financial year 2024. These requirements
are applicable to Nokia by virtue of Art. 3 and Art. 19a of
Directive 2013/34/EU (the “Accounting Directive”),
as modified by the CSRD. The content of the Sustainability
Statement is prepared based on the double materiality
assessment conducted by Nokia in accordance with the
CSRD and the ESRS, which helped determine the material
sustainability topics, and the related disclosures and
information included in the Statement.
The Sustainability Statement was prepared on a consolidated
basis. The reporting scope for own operations is the same as
for the consolidated financial statements. All statements on
strategies, policies, actions, metrics and targets refer to Nokia.
The Sustainability Statement takes into account certain
relevant segments of Nokia’s value chain where impacts, risks
and opportunities are likely to arise from Nokia’s sustainability
perspective, and provides information on upstream and
downstream activities in accordance with ESRS 1 General
Requirements, as applicable.
The statement indicates how Nokia’s operations take into
account and affect Nokia’s stakeholders, their concerns
and interests. The intended audience of this Sustainability
Statement are Nokia’s various stakeholders, primarily
its investors.
The Sustainability Statement does not include the digital XBRL
sustainability tags in accordance with Chapter 7, Section 22,
Subsection 1, Paragraph 2 of the Accounting Act, as it has not
been possible to comply with this provision due to the absence
of the ESEF regulation or other European Union legislation.
The Sustainability Statement was subject to external limited
assurance in accordance with ISAE 3000 (Revised). The
Assurance report on the Sustainability Statement can be found
on page 289. The assurance provider’s opinion does not cover
the comparative information that has been presented in the
Sustainability Statement.
Discontinued operations
Nokia announced that it had entered into a put option to sell
Alcatel Submarine Networks on 27 June 2024. The sale was
completed on 31 December 2024. Beginning from the second
quarter of 2024, the Submarine Networks business, which was
previously reported as part of Nokia’s Network Infrastructure
operating segment, is presented as a discontinued operation
in this report.
As a result, the metrics for continuing operations and
discontinued operations are disclosed separately herein,
in the applicable topical standards.
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General information
Nokia in 2024
Disclosures in relation to specific
circumstances
Time horizons
The reporting period for the Sustainability Statement is
consistent with the financial statements.
Nokia is adopting short-term, medium-term and long-term
time horizons as of the end of the reporting period and as
defined by ESRS.
Sources of estimation and outcome uncertainty
Due to the extent of Nokia’s value chain and the geographical
spread of its operations, some of the quantitative metrics and
monetary amounts included in this Sustainability Statement
have a higher level of measurement uncertainty. Therefore,
when quantitative metrics and monetary amounts cannot be
measured or collected directly from its systems, Nokia has
made use of assumptions and estimates with the purpose of
enabling users to understand the most significant information,
without undermining its usefulness or quality. Such estimates
and underlying assumptions are believed to be reasonable
under the circumstances. Processes and internal controls are
implemented at various levels of the organization with the
view of minimizing uncertainties and maintain transparency.
However, there is still some degree of uncertainty and some
inherent limitations in making accurate information available,
especially information related to some specific resource use
and circular economy metrics such as waste. Nokia is
implementing and developing internal process to improve
accuracy, primary-source data where possible and to close
reporting gaps.
Where estimations were used or where outcome uncertainties
related to the metrics disclosed in the statement exist, this
information is disclosed along with the respective metrics
within each topical chapter in the section ‘Reporting principles’,
to provide context for and support understanding of our
disclosures. Information on value chain and other estimations
can be found in the sections ‘Climate change (ESRS E1)’ and
‘Resource use and circular economy (ESRS E5)’.
Forward-looking statements
Certain statements contained in this Sustainability Statement
constitute "forward-looking statements." Such statements are
based on management’s best assumptions and beliefs in light
of the information currently available to it and are subject to a
number of risks and uncertainties, many of which are beyond
our control, which could cause actual results to differ materially
from such statements. These statements are only predictions
based upon our current expectations and views of future
events and developments and are subject to risks and
uncertainties that are difficult to predict because they relate
to events and depend on circumstances that will occur in
the future. Risks and uncertainties that could affect these
statements include but are not limited to the risk factors
specified under the ‘Risk factors’ section under Nokia’s Board
review 2024.
Changes in the preparation or presentation of
sustainability information and reporting errors
in prior periods
For the first year of reporting under ESRS, Nokia is not
disclosing comparative information for all metrics, nor changes
in preparation or presentation of the Sustainability Statement
or reporting errors in respect of the previous period.
Where metrics have been reported previously, comparative
information is presented. Nokia is also presenting comparative
information in respect of the base year for amounts reported
in the current period when reporting the developments and
progress toward a target.
Any changes in quantitative data from prior periods, as
disclosed in Nokia’s previous People & Planet voluntary
sustainability reports, are presented in the relevant section
of a topical standard where the respective metric is discussed.
However, for newly introduced metrics, Nokia has opted to
use the transitional provisions for the first reporting year, in
accordance with ESRS 1, and is not presenting comparative
information.
Content index
List of disclosure Requirements in ESRS covered in the
Sustainability Statement and list of data points that derive
from other EU legislation are included in the Appendix to the
Sustainability Statement.
Use of phase-in transitional provisions in accordance
with ESRS 1
This being Nokia’s first year of reporting, Nokia has adopted
the phase-in transitional provisions as outlined in ESRS 1
General Requirements. Consequently, the following specific
metrics have been omitted from the first-year disclosures and
will be reported in the subsequent periods in accordance with
the applicable requirements:
ESRS section reference
Disclosures omitted from the first year
ESRS 2, SBM-1,
Para 40(b)
Breakdown of total revenue by significant ESRS
sectors
ESRS 2, SBM-1,
Para 40(c)
List of additional significant ESRS sectors
beyond the ones reflected under Para 40(b)
ESRS 2, SBM-3,
Para 48(e)
Material impacts, risks and opportunities and
their interaction with strategy and business
model
ESRS E1, Disclosure
Requirement E1-9,
Para 64-70
Anticipated financial effects from material
physical and transition risks and potential
climate-related opportunities
ESRS E5, Disclosure
Requirement E5-6,
Para 41-43
Anticipated financial effects from resource
use and circular economy-related impacts,
risks and opportunities
ESRS S1, Disclosure
Requirement S1-11,
Para 72-76
Social protection
ESRS S1, Disclosure
Requirement S1-15,
Para 93
Work-life balance metrics
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Governance
Roles of Nokia’s administrative,
management and supervisory bodies
regarding sustainability matters
Composition and diversity of the members of the
administrative, management and supervisory bodies
Of the 10 members of the Board, 40% are female and
60% are male. The Board members represent six different
nationalities. The current members of the Board are all
non-executive and there are no employee or other worker
representatives on the Board of Directors. For the term that
began at the Annual General Meeting 2024, 100% of Board
members were determined to be independent of the Company
and its significant shareholders.
The Corporate Governance and Nomination Committee of
the Board aims to continually renew the Board to ensure an
efficient Board of international professionals with a diverse
mix of skills, experience and other personal qualities in line
with the diversity principles established by the Board. A
diverse Board promotes good corporate governance and
the ability to support and challenge the company’s
operative management. The Board’s diversity is seen as a
dynamic, evolving concept that aligns with business goals
and future needs, rather than a static requirement. Diversity
is considered from a number of aspects, including skills,
experience, tenure, age, nationality, ethnicity, cultural and
educational backgrounds, gender and other individual
qualities, all aimed at driving continuous improvement
and development.
The Group Leadership Team (“GLT”) is chaired by the
President and CEO. On 31 December 2024, the GLT
consisted of 11 members, including the President and CEO,
representing six different nationalities, with 18% of the GLT
members being female and 82% being male. All except the
President and CEO are employees. There is no other worker
representation in the GLT.
The following table shows the primary experience of the
current and proposed Board members relevant to Nokia's
sectors, products and geographic locations of business.
Experience and skills of the Board members
Business
Exec. role with
P&L
responsibility
External
boardroom
roles/
Governance
Finance and
accounting
Legal/Public
policy/
Compliance
Communications
service provider
market segment
Enterprise
market
segment
Technology Cybersecurity
Environmental/
Social issues
Current Board members
Sari Baldauf
✔
✔
✔
✔
✔
✔
Søren Skou
✔
✔
✔
✔
✔
Timo Ahopelto
✔
✔
✔
✔
✔
Elizabeth Crain
✔
✔
✔
✔
Thomas Dannenfeldt
✔
✔
✔
✔
✔
Lisa Hook
✔
✔
✔
✔
✔
✔
✔
Mike McNamara
✔
✔
✔
✔
✔
Thomas Saueressig
✔
✔
✔
✔
✔
✔
✔
Carla Smits-Nusteling
✔
✔
✔
✔
Kai Öistämö
✔
✔
✔
✔
✔
✔
Proposed new Board
members
Pernille Erenbjerg
✔
✔
✔
✔
✔
✔
✔
Timo Ihamuotila
✔
✔
✔
✔
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Oversight of environmental, social and governance
activities and practices
Under our Corporate Governance Guidelines, the Board
evaluates Nokia’s environmental and social activities and
governance practices, related risks and target setting as well as
their implementation and effectiveness across the Company.
In 2024, the Board reviewed the sustainability strategy and
re-examined the sustainability targets related to material
impacts, risks and opportunities following the double
materiality assessment, as well as the progress toward the
targets, the evolving ESG requirements and expectations,
investor feedback, Nokia’s approach to related disclosures,
and Nokia’s net-zero commitment and roadmap. Additionally
in 2024, the Board approved the targets related to climate
change in the long-term incentive plan, approved the targets
on health and safety and diversity included in the short-term
incentive plan, and monitored them and other ESG targets.
The Committees of the Board of Directors have been
delegated the responsibility of providing oversight and
monitoring several environmental and social developments
and activities in accordance with their respective area
of responsibilities.
The Audit Committee reviews sustainability disclosures
annually, as well as the information on the use of conflict
minerals in Nokia’s products presented in the annual reports
and the related regulatory filings. During 2024, the Audit
Committee’s responsibilities included the continued
implementation planning of new climate- and other
sustainability reporting requirements, including the double
materiality assessment, preparing the proposal for election of
the auditor carrying out the assurance of the sustainability
reporting, and oversight of the ethics and compliance program.
The Personnel Committee oversees human capital
management, including personnel policies and practices
related to Nokia’s culture, physical safety, employee well-being,
diversity, recruiting, development and retention. In 2024,
the Personnel Committee focused, among other things, on a
people risk review, including physical safety and succession
planning. The Committee has recommended to the Board
to include carbon emission reduction in the metrics of the
long-term incentive plan as well as diversity and health
and safety as metrics in the short-term incentive plan.
The Corporate Governance and Nomination Committee
assesses and advises the Board on ESG-related activities
and practices, aiming to enhance the governance structure
supporting them.
The Technology Committee and the Strategy Committee
review how the Company’s ESG strategy embeds into the
Company’s technology strategy and roadmaps as well as into
other strategic initiatives.
The Group Leadership Team regularly addresses sustainability
matters in its meetings. It examines the sustainability-related
impacts, risks and opportunities of Nokia’s business decisions
and projects. It prepares the company’s ESG-related strategy,
targets and operational frameworks. This enables the
accountability and empowerment of each business group while
maintaining appropriate strategic and operative oversight.
In 2024, overall responsibility for ESG within the GLT was
transferred from the Chief Corporate Affairs Officer to the
Chief Legal Officer.
During 2024, the GLT was informed and updated on Nokia’s
sustainability-related initiatives and projects, including
regulatory requirements of the EU and other jurisdictions,
stakeholder engagement programs, donations and social
programs and Nokia’s ESG automation and digitalization program.
Nokia’s governance processes, controls and procedures allow
for the monitoring, management and oversight of sustainability
matters by the Board, its Committees and the GLT. Dedicated
processes and procedures have been established by the
Sustainability function, the Finance ESG controlling function
and the ESG legal function. These processes and procedures
are applied to the management of sustainability impacts, risks
and opportunities by the dedicated roles established within
each business group and function.
This allows the Board and the GLT to make informed decisions
regarding Nokia’s sustainability strategy, including the goals,
the company’s roadmap and the steps to achieve the
related objectives.
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Nokia’s sustainability governance framework
Nokia Board
of Directors
■
Approves ESG strategy and evaluates ESG practices, related risks and target setting as well as their implementation and effectiveness.
■
Specific sustainability topics are reviewed by Board Committees based on their responsibilities, including, among others, ESG reporting, materiality assessment, ethics and compliance, privacy,
culture, human capital management and embedding sustainability in our technologies.
Personnel Committee
■
ESG incentive targets
■
Human capital management
Audit Committee
■
Sustainability reporting
■
ESG related risks and opportunities
■
Ethics and compliance
■
Cybersecurity and privacy
Corporate Governance & Nomination
Committee
■
Corporate governance
■
Sustainability related corporate governance trends
Technology Committee and Strategy
Committee
■
Review how the Company’s ESG strategy
embeds into the Company’s technology
strategy and roadmaps as well as into other
strategic initiatives
Group Leadership
Team
■
Reviews and approves implementation of and changes to sustainability-related policies, management and operational frameworks, strategy, targets and performance and annual
sustainability report.
■
Conducts sustainability review and provides feedback a minimum of two times per year and as topic-specific areas require.
■
CEO, CFO and business group presidents review additional sustainability topics a minimum of two times per year as part of Nokia business reviews.
Sustainability Council
■
Steers the alignment of sustainability strategy, priorities, and the
implementation of sustainability activities across Nokia
■
Contributes to the sustainability strategy and materiality assessment,
and reviews sustainability targets and performance
■
Provides additional insight to sustainability-related risks and
opportunities
Donations and Sponsorships Committee
■
Sets principles for allocation of corporate donations and
investments for universities and communities
■
Approves funds for donation allocation and reviews major
sponsorships
■
Assesses the impact of all donation programs
Human Rights Due Diligence Council
■
Governs high-level alignment on Nokia’s Human Rights Policy and
implementing procedures
■
Steers decisions on Nokia businesses from a human rights point
of view
■
Ensures alignment between all business groups and functions
and that appropriate mitigations are put in place
Members
Senior leaders from all business groups, People, Finance, Strategy and
Technology and Legal, Compliance and Sustainability
Members
Chief Financial Officer, Chief Legal Officer, Chief People Officer, Chief
Compliance Officer, VP Technology Leadership, VP Sustainability. Head of
Corporate Social Impact
Members
Chief Legal Officer, Chief Geopolitical and Government Affairs Officer,
Chief Communications Officer, Chief Compliance Officer, VP Technology
Leadership, VP Sustainability, other senior leaders per need. Head of
Human Rights, and Legal Counsel
Multidisciplinary sustainability team (Legal, Compliance & Sustainability, Finance)
Drive the implementation of the ESG strategy and actions needed to achieve targets at the operational level. Support employees with training and guidance, fostering ethical decision-making and choices that are consistent with
our values, policies, and laws. Subject matter experts contribute fact-based input to the different functions and business groups. Ensure corporate sustainability reporting is in line with requirements and regulations. Promote
an open reporting culture and oversee robust and impartial concern reporting, investigation and remediation processes.
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Skills and expertise to oversee sustainability matters
ESG topics are brought to the attention of the Board of
Directors, the GLT and various committees on a regular basis
through several channels, by members of the Sustainability
team and subject matter experts, as well as the representatives
of each business group and functions who are members of
the Sustainability Council.
Trainings by external experts are also organized with the
view of enabling the Board members and the GLT to evaluate
Nokia’s sustainability strategy, including its goals, roadmap and
efforts and to assess the materiality of sustainability topics
relevant to Nokia.
Several sustainability topics were included in the yearly
mandatory trainings and learning courses developed by in-
house experts. These topics include net-zero; responsible
business and sustainable sourcing; sustainability finance
frameworks; responsible artificial intelligence; sustainability
as part of Nokia’s Technology Vision 2030; greenhouse gas
emissions; sustainability reporting and the double materiality
assessment; security and privacy; business ethics; and
information security. Specialized teams were made available on
a company-wide scale ensuring that all employees, including
the GLT members, have access to sustainability knowledge
resources and are learning about sustainability matters.
Key experts and executives participated in the double
materiality assessment. During the interviews conducted in the
framework provided by the double materiality assessment, an
external partner specializing in sustainability reporting provided
information that allowed Nokia’s executives to understand
the fundamental concepts of impact and financial materiality
and their effect on a company’s business and strategy. The
executives involved in the double materiality assessment had
the opportunity to validate and provide their views on material
environmental, social, and governance topics and related
impacts, risks, and opportunities. This experience offered the
executives valuable learning opportunities not only on material
sustainability topics but also on the rapidly evolving landscape
of regulatory reporting requirements.
Informing and supporting the
administrative, management and
supervisory bodies in their oversight
of impacts, risks and opportunities
Several councils and committees are set up to inform the
administrative, management and supervisory bodies in their
oversight of ESG impacts, risks and opportunities.
The Sustainability Council, the Donations and Sponsorships
Committee and the Human Rights Due Diligence Council steer,
align and ensure the implementation of ESG strategies, targets
and frameworks. They provide relevant information to the
Group Leadership Team and the Board of Directors and its
Committees, supporting them in their oversight of impacts,
risks and opportunities.
The ESG Financial Reporting Steering Committee informs
the Audit Committee of the Board of the impacts, risks and
opportunities identified through the double materiality
assessment and of the contents of the Sustainability Statement.
Sustainability related key risks and opportunities are
embedded within Nokia’s Enterprise Risk Management
framework and within that context are reviewed, minimum
annually, with the GLT and the Board.
This approach allows the GLT, the Board, and the Committees
of the Board to gain valuable insight into sustainability topics
relevant to Nokia, and to evaluate Nokia’s long-term strategic
business plan from the added perspective of sustainability.
ESG topics are brought to
the attention of the Board of
Directors, the GLT and various
committees on a regular basis
through several channels, by
members of the Sustainability
team and subject matter experts,
as well as the representatives of
each business group and functions
who are members of the
Sustainability Council.
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Integration of sustainability-related
performance in incentive schemes
Nokia operates short-term and long-term incentive plans for all
employees, including the Group Leadership Team (GLT), as well
as the President and CEO. Performance measures are set
yearly to align with Nokia’s business strategy and priorities,
including financial, operational and sustainability targets.
Nokia's 2024 incentive plans prioritized both financial
performance and sustainability goals.
Long-term incentives (LTI), awarded in shares, typically vest
after three years based on achieving performance conditions
aligned with Nokia's long-term strategy. The performance share
awards for all participants include a 10% weighting on carbon
emission reduction targets (scope 1, 2, and 3) over a three-
year performance period. These carbon emission reduction
targets are aligned with Nokia’s net-zero roadmap and
incentivize the commitment toward the 2030 goal of a
50% reduction in carbon emissions, demonstrating Nokia's
commitment to long-term emissions reduction and active
approach in addressing climate change.
The 2024 Short-term Incentive Plan (STI) includes metrics and
targets for health and safety as well as gender diversity as an
incentive mechanism for fulfilling Nokia’s ESG commitments.
The short-term incentives for the President and CEO and the
GLT members include a 10% weighting for the health & safety
metric (lost time injury frequency rate with a fatality modifier
for deaths within Nokia’s control) and a 10% weighting on
female percentage in global external hiring.
In total, the proportion of variable remuneration subject to
sustainability-related targets is 20% for the President and CEO
and the GLT members in their short-term incentives and 10%
in their performance-based long-term incentives.
Key characteristics of the incentive schemes
Delivering the next year’s step in the strategic plan – STI
Comparable operating profit 60%(1)
Cash release 20%
Continued focus on profitability
Achieve a strong cash position
Health & safety 10% – lost time
injury frequency rate (with a
fatality modifier)
Women in leadership 5%
Women in workforce 5%
Deliver on our focus on the
continued health and safety
of our employees
Deliver on our commitment to
become a more diverse
employer
Delivering sustainable value – LTI
50% relative TSR, 40% cumulative reported EPS (adjusted for
impairments and M&A), 10% carbon emission reduction (scope 1,
2 and 3)
A more rounded and balanced approach reflecting performance over
the long term in growing the business and in delivering shareholder
value whilst working towards our 2030 goal of 50% carbon emission
reduction
Nokia's Remuneration Policy, which governs the remuneration
of the Board of Directors and the President and CEO, was last
updated in 2024. The Remuneration Policy has been aligned
with Nokia's business strategy and helps ensure that executive
compensation reflects contributions to sustainability targets
and thus also long-term shareholder value creation.
The conditions of the short- and long-term incentives are
prepared and approved by the Personnel Committee of the
Board of Directors, while the Board of Directors approves
all the Company’s share-based incentives as well as the
President and CEO’s compensation, including the share-based
incentive schemes.
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(1) Non-IFRS measure. For the definition and reconciliation of non-IFRS measures
to the most directly comparable IFRS measure, refer to the ”Alternative
performance measures” section.
Statement on due diligence
Specific due diligence processes applied in relation to
environment, human rights and responsible sourcing are
described below.
Environmental due diligence
Nokia is committed to sound environmental management and
to minimizing its environmental impact throughout the product
lifecycle. This commitment is integrated into all business
operations, with continuous improvement targets and
programs in place. Nokia also implements Environmental
Management System along with quality and health and safety
management systems to ensure compliance with relevant
environmental requirements.
Human rights due diligence
Nokia is committed to the human rights principles and values
laid out in the International Bill of Human Rights (consisting of
the Universal Declaration of Human Rights and its related
covenants), the International Labor Organization’s Declaration
on Fundamental Principles and Rights at Work, the OECD’s
Guidelines for Multinational Enterprises, and the United
Nations’ Guiding Principles on Business and Human Rights.
Nokia’s Human Rights Due Diligence (HRDD) process targets
the potential misuse of the technology it provides. It is a pre-
emptive process applied before any sale is made and is used
to identify the most likely risk level to human rights through
potential misuse of our technology. The process examines a
country’s long-term commitment to upholding human rights,
the intended use of the technology in question and the
customer type, to identify said risks early in the process and
trigger the required HRDD investigation and senior-level
approval/denial review where needed.
For country risk ratings, we use an external assessment
provider. The HRDD process triggers are a mandatory part of
the sales approval process. Training, results tracking, the
communication of findings, checkpoints and triggers for the
process are reviewed and, where needed, improved by the
Head of Human Rights on an ongoing basis.
Responsible sourcing due diligence
Nokia actively engages with its suppliers to promote
responsible sourcing practices in key sustainability areas,
including environmental issues, health and safety, labor rights,
and ethical behavior. The company's responsible sourcing
program focuses on supplier due diligence, climate action,
circularity, and responsible minerals sourcing. For these
purposes of assessing and further developing corporate social
responsibility behavior and standards across its industry sector
supply chain, Nokia collaborates with the Responsible Business
Alliance (RBA) and the Joint Alliance for CSR (JAC), comprising
some of the world’s largest telecom operators. Additional
details are provided under the section ‘Workers in the value
chain (ESRS S2)’.
The following table provides a mapping of the core elements
of Nokia’s due diligence for impacts on people and the
environment and their location in this Sustainability Statement,
in addition to the information disclosed in this section.
Embedding
due diligence
in Nokia’s
governance,
strategy, and
business
model
General information
Informing and supporting the administrative,
management and supervisory bodies in their oversight of
impacts, risks and opportunities, page 92
Integration of sustainability-related performance in
incentive schemes, page 93
Material impacts, risks and opportunities and their
interaction with Nokia’s strategy and business model,
page 102
Engaging with
affected
stakeholders
General information
Interests and views of stakeholders, page 99
Description of the process to identify and assess material
impacts, risks and opportunities, page 108
Own workforce (ESRS S1)
Processes for engaging with own workforce and workers’
representatives about impacts, page 149
Processes to remediate negative impacts and channels
for own workforce to raise concerns, page 149
Workers in the value chain (ESRS S2)
Processes for engaging with value chain workers about
impacts, page 156
Affected communities (ESRS S3)
Processes for engaging with affected communities about
impacts, page 163
Processes and channels for affected communities to raise
concerns, page 163
Consumers and end-user (ESRS S4)
Processes for engaging with consumers and end-users
about impacts, page 167
Processes and channels for consumers and end-users to
raise concerns, page 167
Core elements of
due diligence
Paragraphs in the Sustainability
Statement
Identifying and
assessing
adverse
impacts
General information
Material impacts, risks and opportunities and their
interaction with Nokia’s strategy and business model,
page 102
Description of the process to identify and assess material
impacts, risks and opportunities, page 108
Climate change (ESRS E1)
Material impacts, risks and opportunities related to
climate change mitigation and energy, page 110
Climate scenario and resilience assessment, page 111
Resource use and circular economy (ESRS E5)
Material impacts, risks and opportunities related to
resource use and circular economy, page 128
Workers in the value chain (ESRS S2)
Material impacts, risks and opportunities related to
workers in the value chain, page 155
Taking actions
to address
adverse
impacts
Climate change (ESRS E1)
Transition plan and actions in related to climate change
policies, page 113
Targets and progress in targets, page 118
Resource use and circular economy (ESRS E5)
Actions, page 131
Targets and progress in targets, page 131
Workers in the value chain (ESRS S2)
Processes to remediate negative impacts and channels
for value chain workers to raise concerns, page 156
Actions, page 157
Targets and progress in targets, page 158
Tracking the
effectiveness
of these
efforts
Climate change (ESRS E1)
Targets and progress in targets, page 118
Disclosure tables, page 122
Resource use and circular economy (ESRS E5)
Targets and progress in targets, page 131
Disclosure tables, page 133
Workers in the value chain (ESRS S2)
Targets and progress in targets, page 158
Disclosure tables, page 160
Core elements of
due diligence
Paragraphs in the Sustainability
Statement
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
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Risk management and internal controls
over sustainability reporting
Internal control procedures in relation to the
sustainability reporting process
Nokia conducts its business globally, being exposed to
geopolitical, social and regulatory developments, including
those affecting environmental, social and governance
(ESG) topics.
Management is responsible for establishing and maintaining
adequate internal controls over Nokia’s sustainability reporting.
Nokia’s internal controls on sustainability reporting are aimed
to provide reasonable assurance to management and the
Board on the reliability of sustainability reporting, as well as the
preparation and fair representation of information and facts in
the published Sustainability Statement. The internal control
processes consist of various controls designed around the
applicable ESRS and monitored through internal audit.
Management conducts a yearly assessment of Nokia’s internal
controls over sustainability reporting in accordance with the
Committee of Sponsoring Organizations Framework (the ‘COSO
Framework’, 2013).
Further, management has also:
■
assessed the design of the controls in place aimed at
mitigating the sustainability reporting risks;
■
tested operating effectiveness of all key controls; and
■
evaluated all noted deficiencies in internal controls over
sustainability reporting in the interim and as of year-end.
In 2024, Nokia has reported on the progress and assessments
to management and to the Audit Committee of the Board on
a quarterly basis.
Nokia’s sustainability reporting and the corresponding internal
controls framework are maturing, to reach the same level of
maturity as the company’s financial reporting and financial
internal controls framework. Regulations and guidelines
are evolving continuously. Nokia is monitoring regulatory
developments in sustainability reporting and their applicability
to its business portfolio, which might impact the
interpretations of sustainability reporting requirements and
internal controls framework, and result in further changes
in subsequent years.
Organization of the internal audit function
Nokia’s internal audit function examines and evaluates the
adequacy and effectiveness of its internal controls system.
The internal audit function reports to the Audit Committee of
the Board. The head of the internal audit function has direct
access to the Audit Committee, without the involvement of
management. The internal audit staffing levels and annual
budget are approved by the Audit Committee. All authority of
the internal audit function is derived from the Board. Annually,
a risk-based internal audit plan is developed that takes into
account key business risks, emerging risks, external factors
and input from management. This plan is approved by the
Audit Committee. Audits are completed across business
groups and functions. The results of each audit are reported
to management identifying issues, financial impact
(if any) and corrective actions to be carried out. Quarterly,
the internal audit function communicates the progress of the
internal audit plan, including the results of the closed audits,
to the Audit Committee. Any changes to the risk environment
impacting the internal audit plan are presented to the Audit
Committee for review and approval on a quarterly basis.
Internal audit also works closely with Internal Controls and with
Ethics and Compliance to review any financial and compliance
concerns brought to light from various channels and, where
relevant, works with Enterprise Risk Management to ensure
that priority risk areas are reviewed through audits.
In 2024, the sustainability reporting process, the internal
controls design, controls performance and audit trail were in
the scope of internal audit reviews and testing. The outcome of
the audits has been shared with the Nokia management as well
as the Nokia Audit Committee of the Board of Directors.
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
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Strategy
Key elements of Nokia’s general strategy
relevant to sustainability matters
Nokia’s approach to sustainability is built on its purpose:
‘To create technology that helps the world act together’.
Sustainability is a key pillar of Nokia’s corporate strategy,
underscoring its ambition to develop Environmental,
Social and Governance activities into a competitive advantage.
It is also integral to Nokia’s Technology Vision 2030.
Recognizing the increasing importance of sustainability
for all stakeholders, including customers, investors,
regulators, partners, communities and employees, Nokia aims
to become the ‘trusted provider’ in the industry and create
long-term value.
Nokia takes a two-pronged approach to sustainability: to
maximize Nokia’s positive impact (handprint) and to minimize
its negative impact (footprint).
In line with Nokia’s sustainability approach, the company
follows these key principles when setting sustainability-related
goals:
■
Continually improving product energy efficiency
■
Driving circularity to reduce waste
■
Building sustainable operations and supply chains
■
Decarbonizing other industries and society
■
Enabling the transition of the energy sector
■
Providing the critical networks for life
■
Connecting the unconnected through building digital skills
■
De-risking the potential misuse of technology
■
Deploying ethical and responsible business practices
Addressing Nokia’s footprint
Nokia aims to deliver its customers products and solutions
that are as energy- and material-efficient as possible. The use
phase of Nokia’s products by its customers accounted for
95% of its total greenhouse gas (GHG) emissions in 2024.
Thus, Nokia’s efforts in GHG emissions reduction concentrate
on reducing the power consumption of the products across
Nokia’s portfolio to improve energy efficiency, and have the
greatest direct impact on its carbon footprint. This is done
through energy efficiency solutions in silicon, hardware,
software products and services. Nokia works with its customers
to optimize the energy used across their networks, not just
looking at the individual network elements. Nokia is also
adopting AI/ML-based optimization and automation to
further reduce energy use and therefore GHG emissions.
A defining challenge for the industry remains the industry-
related growth in energy use. The increasing growth in
emissions in the ICT industry springs from an increasing
demand 24/7 for data and the energy required to handle
that data. This means that data traffic growth needs to be
decoupled from the related growth in energy use and thus
the resulting increase in emissions.
Nokia embeds energy efficiency thinking into the entire
product development process from design and manufacturing
to circularity, striving to build a sustainable value chain.
Nokia further aims to reduce its climate change impact through
smart supply chain logistics planning, collaboration with
suppliers and practicing circular economy principles to reduce
material use and land impact through Design for Environment,
equipment life extension, modularity, upgradability,
reconfigurability for flexible architectures, recycled content
and recyclability.
Enhancing Nokia’s handprint
Digitalization can empower industrial enterprises and other
customers to accelerate their journey towards Industry 4.0 by
increasing productivity and efficiency, helping to reduce energy
and other resource consumption and minimize waste. This
approach not only helps achieve commercial goals but also
provides for long-term sustainability.
In 2024, to further support sustainability, Nokia introduced
the Private Wireless Sustainability Calculator. This tool helps
enterprises quantify the impact of private wireless networks
on their operations to help identify where they can reduce
their environmental footprint and improve worker safety.
The calculator identifies opportunities for sustainability gains
through digitalization, providing insights to enhance business
operations, including improved equipment life cycles, reduced
transportation downtime and fuel consumption and improved
worker health and safety.
Nokia helps to bridge the digital divide by connecting the
underserved through products and solutions across Nokia’s
business divisions. For example, IP Networks delivers end-to-
end routing solutions to connect mobility users globally and
allow schools, businesses, and homes to economically and
efficiently connect in the global economy. Optical Networks
delivered multiple projects in Africa to backhaul new subsea
cables and introduced a new class of extended temperature
range (ETR) solutions to provide high-speed connectivity in
outdoor plant environments. Fixed Networks offers PON Fiber-
to-the-Home for homes, businesses and communities; Gigabit
Connect for multi-dwelling units (MDUs); and 5G Fixed Wireless
Access solutions to connect as many people as possible,
expand broadband access across underserved communities
and participate in funding initiatives like the Broadband Equity
Access and Deployment Program (BEAD) in the United States.
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
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Sustainability strategy
Nokia’s sustainability strategy aims to enhance the positive
impact of the company, taking into consideration risks and
opportunities in several important focus areas. The strategy
is implemented through the business groups and central
functions. Nokia’s focus areas with material impacts, risks and
opportunities are: (i) Environment (climate and circularity),
(ii) Bridging the digital divide, and (iii) Responsible business.
Under Environment, we emphasize two areas: climate and
resource use and circular economy. Nokia addresses its
own environmental footprint by focusing on GHG emission
reduction across scope 1, 2 and 3 emissions and efficient
resource use and waste minimization across the value chain.
Please refer to sections ‘Climate change (ESRS E1)’ and
‘Resource use and circular economy (ESRS E5)’.
In Bridging the digital divide, Nokia uses its broad product
portfolio across terrestrial and non-terrestrial communication
networks to connect the unconnected and underserved and
invest in partnerships to support digital skills building. Refer to the
sections ‘Affected communities (ESRS S3)’ and ‘Consumers and
end-users (ESRS S4)’.
In terms of Responsible business, Nokia works to ensure
that its business practices are aligned with its ethical and
responsible values both internally, as well as in Nokia’s value chain.
Its approach to responsible business is covered in the topical
environmental, social and governance sections of this
Sustainability Statement.
Business model and value chain
Nokia collaborates closely with customers and suppliers
to engage on systemic issues related to the environment,
mitigating the misuse of technology (and advocating for
responsible AI principles), ethics, human rights, and working
conditions. This includes addressing topics such as responsible
sourcing of minerals, climate, circularity and labor rights in
the lower tiers of its value chain as well as understanding
the sustainability expectations of stakeholders and working
towards accommodating them, complemented by supplier
development, learning, and industry collaboration.
Nokia’s business groups
Nokia embeds sustainability into the product and operational
strategies of its four business groups: (i) Network
Infrastructure, (ii) Mobile Networks, (iii) Cloud and Network
Services and (iv) Nokia Technologies.
Network Infrastructure delivers fixed access, IP routing and
optical transport for business-critical and mission-critical
applications for communication service providers, enterprises
and webscale customers.
Mobile Networks creates products and services covering all
3GPP mobile technology generations. Its portfolio includes
products for radio access networks and microwave radio links
for transport networks, solutions for network management,
and network planning, optimization, deployment and technical
support services. Customers include Communication Service
Providers, industrial enterprises, governments and the
defense sector.
Cloud and Network Services serves a diverse customer base,
including communication service providers, enterprises,
hyperscale customers, digital developers, and partners. CNS
invests in technologies that are critical to our customers’
growth: 5G core, secure autonomous networks, private wireless
and industrial edge, and network APIs. These solutions,
increasingly available in a SaaS model, help customers capture
the unfolding opportunities of digitalization, AI, and cloud.
Nokia Technologies is responsible for managing Nokia’s patent
portfolio and monetizing Nokia’s intellectual property, including
patents and technologies.
In 2024, Nokia delivered net sales of EUR 19 220 million and
invested EUR 4 512 million in research and development.
The four business groups comprise operating and reportable
segments for financial reporting purposes. For further
information about Nokia's operating and reportable segments,
as well as their accounting policies, see the Financial
Statements section, specifically note 2.2. ‘Segment Information’.
During 2024, Nokia employed 78 434 employees (average,
excluding discontinued operations). Detailed information on
the headcount of employees by country/region is available
in the section Own workforce (ESRS S1), ‘Disclosure tables’.
Supply chain
In 2024, Nokia conducted business with around 9 300 suppliers
in over 100 countries. 80% of Nokia’s total supplier spend was
distributed across around 400 suppliers.
Nokia’s suppliers fall into six broad categories:
■
Final assembly suppliers
■
Hardware suppliers for product materials (such as standard
components, optical components, semiconductors and
electromechanics)
■
Market services suppliers who support the provision of
services to our customers such as in installation,
construction and managed services
■
Software
■
Cloud Services
■
Indirect sourcing suppliers for everyday goods and services
needed to run Nokia’s business such as consulting, legal
and marketing.
Nokia’s hardware suppliers are mainly based in Asia and
its services suppliers are based around the world. In 2024, in
addition to its own factories in Finland and India, Nokia’s electronics
manufacturing services final assembly suppliers included Flex,
Foxconn, Jabil, Sanmina, Fabrinet and Karel supplier sites in
Canada, China, Hungary, India, Italy, Malaysia, Mexico, Romania,
Thailand, Turkey, the US and Vietnam. A list of Nokia’s largest
strategic original design manufacturers, original equipment
manufacturers and component suppliers is published on our
website to further increase stakeholder transparency.
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
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Nokia’s value chain
Value chain mapping
During the double materiality assessment exercise conducted
in late 2023, Nokia outlined the key components of its value
chain, which are presented in the following picture.
Nokia’s value chain considers all Nokia business groups, key
business functions, resources and relationships distributed
upstream, through its own operations and downstream.
Upstream has three main phases: (i) material sourcing and
processing, (ii) components and service procurement and (iii)
manufacturing and assembly. Nokia engages directly or via
industry with various suppliers, from raw materials extractors
to outsourced manufacturers and repairers of recycled materials.
Nokia’s own operations comprise four main phases: (i) technology
creation and sales, (ii) manufacturing and assembly, (iii) installation,
and (iv) Real Estate activities. The main business actors involved
in Nokia’s own operations are Nokia’s own employees.
Downstream has three main business phases: (i) product use,
(ii) customer support and maintenance, and (iii) end-of-life
management.
There are also cross-cutting activities that support Nokia’s
operations along the full value chain. These include activities
like logistics, distribution and transportation of materials
and ready products, general business services, and financing
and investments.
Upstream
Own operations
Downstream
Value
chain
Material
sourcing and
processing
Components
& service
procurement
Manufacturing
& assembly
Technology
creation
& sales
Manufacturing
& assembly
Installation
Real Estate
activities
Product use
Customer
support &
maintenance
End-of-life
management
Business
activity
■Extraction
(mining, drilling
of raw
materials)
■Refining and
smelting of
virgin materials
■Refining of
recycled
materials
■Hardware
(including
original
equipment
manufacturing)
■Software
■Cloud services
■Subcontracted
labor and
services (e.g.
installation,
civil works etc.)
■Outsourced
manufacturing
■Outsourced
R&D
■Outsourced
repair
■R&D of
software
■R&D of
hardware
■IP management
and licensing
(TECH)
■Own
manufacturing
and repair
centers
■Network
infrastructure
building
■Installation of
network
elements and
support
systems
■Site acquisition
■Lease and
property
management,
facility
management,
energy use for
offices and labs
■Hardware,
software and
services in
mobile, fixed
and the
enterprise
networks
■Operation and
optimization of
networks
■Hardware
maintenance
and
replacement
■Software
maintenance
■Upgrades
(software &
hardware)
■Other technical
support
■Recycling and
waste
management
■Refurbishment
remanufacturing
(incl. life
extension
services)
Cross-cutting value chain phase
Logistics, distribution and transportation (e.g. delivery hub)
Sales & marketing and general business services (e.g. legal, procurement)
Financing and investments
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
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Interests and views of stakeholders
Nokia adopts a collaborative and consultative approach towards its key stakeholders, by displaying responsiveness and consideration to those stakeholders’ views and interests in its decision
making related to the company’s strategy and business model. This approach was also followed for the purposes of conducting the double materiality assessment, the results of which are taken
into account in various business and strategic decisions, especially when affecting the interests of these key stakeholders. The table below includes a summary of Nokia Group’s key stakeholders,
and of how themes important to them are considered in the company’s strategy and business model:
Customers
Nokia interacts and engages with its customers
on a frequent basis through various mechanisms
and multiple channels to address issues and
concerns, present proposals, identify solutions,
and evaluate, mitigate or remedy impacts.
Cooperation mechanisms are set up to enable
Nokia to tackle environmental and social
challenges together with its customers, and to
look at ways in which technology can enable
positive changes.
Sales personnel are dedicated to specific
customers. Direct engagement through
various channels and at targeted customer and
industry events allows for frequent
opportunities to inform and collect feedback
and to collaborate on sustainability-related
initiatives. Customers also participate in
Executive Review Meetings with Nokia
leadership team members. ESG customer
advisory councils are established in Europe,
Asia and India, and the Middle East and Africa,
allowing for open discussions on sustainability
topics. Industry association such as the Global
System for Mobile Communications Association
(GSMA) and Joint Alliance for CSR (JAC) also
provide channels of collaboration and feedback.
Connectivity and digitalization, GHG emission
reduction, energy and materials efficiency,
climate actions, circular products and services,
recycled materials, life cycle assessment, value
chain, responsible operations, inclusion and
diversity, human rights, public safety and health,
data security, privacy and responsible AI.
Customer feedback through all of the
channels is taken back to responsible teams
in the business groups. Through
sustainability focused meetings, customer
requirements are taken into strategy and
even business models, for example, the use
of circular products and services or the set
up of joint programs to bridge the digital
divide and other ESG related topics.
Own workers
Nokia deploys a variety of means to engage with
its workers, both through statutory mechanisms
as well as voluntary initiatives that enable and
stimulate workers to be informed and consulted,
and to react to management decisions, plans,
ideas, strategies and approaches, on a frequent
basis and without fear of retaliation.
A variety of channels are used to engage with
employees: the company intranet, SharePoint,
focused surveys, company email, town halls and
meetings, training curriculum and community
of interest, regular manager-employee dialogue
in additional to the available grievance
mechanisms allowing for various reporting
channels. Workers’ representatives are
informed and/or consulted during regular
meetings with established bodies such as
workers’ councils, prevention committees,
and other statutory consultative bodies.
New People Agenda, Nokia essentials, well-being,
health and safety, future ways of working and
flexibility policies, inclusion and diversity,
leadership development, technical career
development and ethical business practices,
training and skill building.
A broad and deep training offering for
employees, including mandatory ESG and
ethics and compliance training helps Nokia’s
teams support customer and other
stakeholder requirements.
Sustainability is the responsibility of all
employees and enablement helps
employees understand how sustainability
fits into their role.
Investors
We have regular discussions with our
shareholders and the investor community on ESG
topics including our approach, policies, targets,
customer and technology opportunities
The annual ESG roadshow brings together our
top shareholders for in-depth discussions
with Nokia experts from HR, IR, Legal, and
Sustainability, as well as, in some cases, Board
members. This platform serves as a forum for
gathering investor perspectives. Beyond the
roadshow, we maintain engagement with
investors throughout the year through face-to-
face meetings and Teams meetings. We also
leverage digital channels and participate in
industry questionnaires and ratings like
Sustainalytics, MSCI and CDP to facilitate
communication and information sharing.
ESG targets and achievements, net-zero strategy
and roadmap, Sustainable Supply chain, Human
Rights, Health & Safety, AI governance, EU
regulations including CSRD and CS3D.
Investor feedback helps validate our strategic
focus areas, value creation opportunities, and
also bring in outside views on changing
strategic topics.
Key stakeholder group
Stakeholder engagement and its purpose
Communication channels
Topics important to stakeholders
Impact on business model and strategy – our approach
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
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Suppliers and
partners
We work with suppliers to drive transparency,
sustainability and good ethical business practices
in our long and often complex supply chain
and to ensure that their interests and views
regarding our sustainability matters are
incorporated into our strategy and business
model.
Direct supplier management channels, supplier
face to face or online meetings and dedicated
events. Industry supply chain organization, such
as the Responsible Business Alliance (RBA).
Partner management dedicated teams in Nokia.
Although there have been multiple forms of
engagement, no direct engagement with the
workforce of Nokia’s suppliers’ and partners was
undertaken specifically on the double materiality
assessment.
Inclusion and diversity, preventing modern
slavery, ethical recruitment practices,
responsible minerals sourcing, climate change,
circular materials and health and safety.
Better understanding through training and
capacity building that improves product energy
or material efficiency, innovations which can
positively impact and change product designs
and sustainability outcomes. Collaboration on
specific technology areas or business models
e.g. circularity.
Industry sector
Nokia contributes its experience and expertise
by engaging and leading in discussions with
organizations developing best practices for the
industry and advising policymakers across the
regions where Nokia operates. These included
contributing experience and support to multiple
streams of the ITUs Green Digital Action
program and the first ever Digital Day at COP29
climate conference in Baku, Azerbaijan. We
contributed expertise to standardization work
for the industry including understanding the
measurement of the environmental impact of
AI. We also work with the mobile industry’s
association on both environmental and social
issues in our industry, covering topics such as
energy efficiency, health and safety and digital
inclusion.
Engagement with industry sector organisations
and representatives is organised based on Nokia
Business owners and the key topics covered by
certain organisations. There are dedicated
stakeholder owners for key organisations and
dependent on the topic Nokia subject matter
experts are also engaged eg Nokia ESG
standards lead for International
Telecommunication Union (ITU) standards
programs. The purpose of our engagement with
industry sector representatives is to ensure we
share best practices with industry peers, learn
from others and achieve desired outcomes in
strategic, policy and technology related to
sustainability work across the industry.
Measurement methodology standards for
5G radio and circularity standards for
telecommunications products and networks in
European Telecommunications Standards
Institute (ETSI) and ITU Telecommunication
Standardization Sector (ITU-T). Responsible use
of AI standards in ISO, European Committee for
Standardization (CEN)/ European Committee for
Electrotechnical Standardization (CENELEC) and
various national committees. Energy-saving
features in 3GPP.
Value chain needs, challenges and
opportunities are often viewed at the industry
level in the sector organizations. This allows
scale and scope for best practice and
innovation across the industry. For example,
through such bodies we see a greater need for
value chain sustainability related data
collection, transparency and delivery to
customers which influences the sustainability
digitalization strategy and plans. This is
expected to increase automation and efficiency
in delivery on customer and other stakeholder
data requirements.
Academia
We collaborate with leading academic institutions
on projects that are innovative and have a high
impact on our Environmental, Social and
Governance (ESG) strategy while also enabling us
to strengthen our relationship with top
universities in Europe, North America and Asia as
we work to solve ESG challenges together.
Channels include Nokia Strategy & Technology
and Business Group led research and
standardization programs and Nokia University
Donations program. We also participate in
training, internships and PhD programs, and
innovation events and recruit top talent from
these institutions.
Under university donation program projects
covered ESG pillars. Environmental projects focus
on Sustainable and Energy Efficient Computing,
and Climate Intelligence and Environmental
Stewardship. Social projects center around
Digital Inclusion and Accessibility and governance
focus is on AI Ethics and Governance and
Explainable AI (XAI).
Examples of projects with university
collaborations include: Sustain 6G, 6G Power,
6G ANNA, Biodiversity footprint assessment
research with Jyväskylä University.
■Building Stronger Academic Collaborations
with New Partners
■Developing more energy-efficient, secure
and environmentally friendly solutions and
technologies
■Collaborations could eventually impact
Nokia’s product development, design and
material choices
Key stakeholder group
Stakeholder engagement and its purpose
Communication channels
Topics important to stakeholders
Impact on business model and strategy – our approach
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Affected
communities and
civil society
We engage through relevant NGOs, non-profit
or community organizations (e.g. UN Women
and UNICEF). We work with NGOs to support
programs which have a long-term impact and
create a sustainable future platform in the
target communities. Nokia’s committee
members participate in key social and human
rights organizations (e.g. Europe and Asia
steering committee for Business for Societal
Impact and board membership of Global
Network Initiative (GNI)).
Nokia engages with cities and communities to
drive digitalization and smart sustainable
development.
NGOs, non-profit or community organizations
serve as a primary communication channel,
leveraging their expertise and direct connections
with the affected communities at the grassroots
level. For more details, see section ‘Affected
communities (ESRS S3)’.
Freedom of expression, potential misuse of
technology, positive impact of technology on
communities, digital skills building, gender topics,
environmental protection and biodiversity
Engagement with affected communities and
civil society directly contributes to Nokia build
and design of its social programs based on the
real needs on the ground from the initial
planning to the final follow up and impact
outcomes. Engagement helps in the
development of the program strategy to better
respond to the most salient challenges of the
communities, their needs and opinions.
Regulatory
authorities and
standard-setting
organizations
We contribute to policy debates fostering a
connected society and the adoption of new
technologies around the world.
Engaging in dialogue and participation in public
consultations by Nokia itself, as well as through
industry associations and sustainability-related
standardization bodies. Participation in, and
assuming leadership roles (chair/vice chair/issue
lead) in relevant working groups of industry and
trade associations (e.g. DigitalEurope, RBA,
European Telecommunications Network
Operators’ Association (ETNO),
Telecommunications Industry Association (TIA),
Bitkom and others).
Digital and broadband policies, regulation of
emerging technologies (AI), ESG topics, policies
that encourage broadband rollout and adoption
and the digital transformation of society and
industry (incl. spectrum for broadband); policies
for trusted and reliable international
connectivity, for the security of digital
infrastructures, for policy frameworks unlocking
innovation (including 6G roadmaps), for the most
effective regulations for sustainability (topics
such as the regulation of forced labor, or due
diligence in supply chains).
Nokia delivers factual advice to help shape
effective policies, and then takes necessary
steps to meet policy objectives, and fulfill all
legal obligations. This may involve adaption of
current practice or implementation of new
internal processes.
Key stakeholder group
Stakeholder engagement and its purpose
Communication channels
Topics important to stakeholders
Impact on business model and strategy – our approach
The views and interests of Nokia’s stakeholders (including its
employees, suppliers, partners and investors) which are
expressed through and during the various engagement
opportunities with those parties are brought to the attention
of, and taken into account by the relevant administrative,
management, and supervisory bodies of the company, as well
as to the attention of relevant functions and units. This allows
for those views and interests to be taken into account both at
the stage of formulating Nokia’s strategy and setting up its
business model and when issues that may affect stakeholders
are considered, if deemed relevant to one or more aspects of
the company’s strategy or business model. The governance
model used by many of Nokia’s functions and business groups
allows for regular reporting to the Group Leadership Team and
the Board of Directors and its Committees on matters raised
by, or concerning, the company’s stakeholders, enabling the
company’s decision makers to calibrate Nokia’s strategy and
business model to address significant material impacts
on stakeholders.
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Material impacts, risks and opportunities and their interaction with Nokia’s strategy and business model
Material impacts, risks and opportunities
Based on Nokia’s double materiality assessment, Climate Change, Resource Use and Circular Economy, and Social and Governance topics were identified as material. The assessment identified
seven material topics, which encompass 14 material sub-topics. Nokia’s material topics and their associated sub-topics and sub-sub-topics are detailed in the table below, providing a
comprehensive view of Nokia’s materiality landscape. In alignment with ESRS requirements, the assessment provides a summary of identified impacts, risks, and opportunities across each
ESRS topic and their respective value chain locations. The findings indicate that impacts, risks and opportunities occur throughout all value chain phases, upstream, downstream, and cross-cutting,
highlighting the interconnected nature of these topics within Nokia’s operations and ecosystem. The process describing how the material impacts, risks and opportunities were identified is disclosed
in the section Impact, risk and opportunity management.
Material impacts, risks and opportunities identified in the double materiality assessment
E1
Climate change mitigation
Positive impact
Substantial contribution to climate change mitigation through development of energy and resource efficient
products and technologies
Downstream
Climate change mitigation
Negative impact
Greenhouse gas emissions in Nokia’s own operations and value chain causing adverse impact on climate
Own operations, Upstream
and Downstream
Energy
Negative impact
Use of high carbon intensity energy sources in connection with usage of Nokia’s products in the customer networks
contributing to negative impact on climate
Downstream
Climate change mitigation
Opportunity
Nokia’s solutions and new innovations in software, hardware and services enabling other industries to transition to a
low carbon economy potentially driving revenue growth and open new revenue streams through new customer
segments and markets
Downstream
E5
Resource inflows,
including resource use
Positive impact
Secondary use of Nokia’s products and use of secondary materials in Nokia’s products prevent generation of waste,
contribute positively to material availability and land use
Upstream
Resource inflows,
including resource use
Negative impact
High use of primary raw materials in our hardware components where mining and melting of virgin materials has
significant negative environment impacts, including waste
Upstream
Resource inflows,
including resource use
Risk
Nokia hardware products are dependent on various minerals and other virgin substances. If global consumption
continues to grow, it may lead to material scarcity likely resulting into increased prices
Own Operations and
Upstream
Resource outflows related
to products and services
Positive impact
Applying circular design and business principles increase the recyclability of Nokia’s products which further enables
recycling of the products and the raw materials contained in them
Own operations, Upstream
and Downstream
Resource outflows related
to products and services
Negative impact
Nokia sells to its customers significant amount of hardware products which at the end of their lifecycle will become
electronic waste, unless handled and recycled appropriately
Downstream
Waste
Negative impact
Nokia sells to its customers significant amount of hardware products which at the end of their lifecycle will become
electronic waste, unless handled and recycled appropriately
Downstream
Waste
Positive impact
Reduction or prevention of waste generation in Nokia’s own operations and value chain, including appropriate
handling and recycling of our products contributes positively to material availability and land use
Own operations, Upstream
and Downstream
S1
Working conditions:
Secure employment
Positive impact
Nokia’s innovative approach to staff development and talent attraction has enabled it to act resiliently in the
markets and renew itself in ways that positively impacts own workforce.
Own operations
Working conditions:
Secure employment
Risk
Inability to attract, develop and retain a future-fit workforce with right skill set and in the right locations during
business transformation
Own operations
Working conditions:
Working time
Positive impact
Nokia has implemented and is maintaining programs and policies regarding flexible working arrangements
Own operations
Working conditions:
Work-Life Balance
Positive impact
Nokia offers global paid family-related leave which often exceeds local regulations to align with defined internal
best practices
Own operations
Material sub-topics/sub-sub-topics
Type of impact,
risk or opportunity
Material impact, risk, or opportunity
Concentration of impact, risk and
opportunity in the value chain
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S1
Working conditions:
Adequate wages
Risk
Increases in wages or changes in the related practices/regulations resulting in increases in Nokia’s personnel
related costs
Own operations
Equal treatment and opportunities
for all: Gender equality and equal
pay for work of equal value
Positive impact
Nokia has adopted gender equality and equal pay principles for own employees
Own operations
Equal treatment and opportunities
for all: Training and skills
development of own workforce
Positive impact
Nokia offers extensive training and skills development opportunities to its own workforce regarding knowledge and
competence development as an essential element of its business strategy, which allows employees to maintain and
enhance their skills
Own operations
Equal treatment and opportunities
for all: Training and skills
development of own workforce
Risk
Inability to attract, develop and retain a future-fit workforce with right skill set and in the right locations in the
rapidly changing technological environment
Own operations
S2
Working conditions:
Working time
Negative impact
Suppliers’ employees in supplier manufacturing facilities or customer services sites may be exposed to excessive or
non-voluntary overtime, continuous work without day off during peak manufacturing or projects with short
execution time.
Upstream and downstream
Working conditions:
Adequate wages
Negative impact
Suppliers’ employees in supplier manufacturing facilities or customer services sites may be exposed to receiving
insufficient wages, deductions from their wages, not receiving correct full and final settlement when terminating
employment or working under false apprenticeship schemes.
Upstream
Working conditions:
Health and Safety
Negative impact
Nokia business activities associated with installation of network equipment & support services, site acquisition &
permitting may include health and safety threats related to working at height, road safety, electrical safety,
underground assets, street works and working in high or extreme risk countries/regions.
Upstream and downstream
Other work related rights:
Forced labour
Negative impact
Suppliers’ employees may be exposed to forced labor, including having work without valid employment contract,
exposure to recruitment fees being collected as part of recruitment channels, casual labor entering our services
supply chain, risks being particularly higher in deeper supply chain tiers, and in services supply chain where execution
of lower skill profile last mile tasks may occur, especially in remote areas which are difficult to reach.
Upstream
S3
Communities’ civil and political
rights: Freedom of expression
Positive impact
Enabling freedom of expression through connectivity and providing social impact programs to help develop digital
skills provide the means for communities to fully participate in today’s digital society. This includes greater
opportunity to share opinions, enjoy their civil rights such as voting, and access diverse information and public
services more easily which further promotes informed decision-making.
Downstream
S4
Information-related impacts for
consumers and/or end-users:
Access to (quality) information
Positive impact
Nokia’s technology enables connectivity and the resulting positive impact related to access to information, exchange
of ideas and opportunity for economic development.
Downstream
Information-related impacts for
consumers and/or end-users:
Freedom of expression
Positive impact
Enabling freedom of expression through connectivity allows consumers and end-users to share opinions, access
diverse information and public services which further promotes informed decision-making.
Downstream
G1
Corporate culture
Risk
Breach of Nokia’s Code of Conduct or the law in regard to compliance areas leading to negative financial or
reputational consequences.
Own operations, Upstream
and Downstream
Corporate culture
Opportunity
Nokia is distinguished as one of the World’s Most Ethical Companies by Ethisphere. Nokia’s strong ethical corporate
culture provides a foundation to engage in business ethically and legally.
Own operations, Upstream
and Downstream
Corporate culture
Positive impact
Corporate culture prioritizing sustainability can lead to responsible and sustainable decision-making throughout
the value chain.
Own operations
Management of relationship with
suppliers including payment practices
Opportunity
Building trusted relationships and long-term partnerships with suppliers who share Nokia’s culture of ethics
and compliance.
Upstream
Corruption and bribery:
Prevention and detection of bribery
Opportunity
Nokia is consistently recognized as one of the World’s Most Ethical Companies by Ethisphere. Nokia’s strong ethical
corporate culture provides a foundation to engage in business ethically and legally.
Own operations, Upstream
and Downstream
Material sub-topics/sub-sub-topics
Type of impact,
risk or opportunity
Material impact, risk, or opportunity
Concentration of impact, risk and
opportunity in the value chain
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Material Impacts on people and the environment
The outcome of the double materiality assessment provides
an overview of Nokia’s most important sustainability topics.
Nokia's existing ESG focus areas already incorporate a degree
of consideration for material impacts, risks, and opportunities.
As determined through the double materiality assessment,
Nokia’s business activities, operations and value chain have an
impact on people and the environment. All material impacts
have occurred or are expected to occur on a short-term
and potentially continue over the medium- and long-term
time horizon.
Nokia’s existing policies, people strategy and values aim to
increase employee satisfaction. By offering skill enhancement
programs and training, employees' capabilities and knowledge
are increased.
Energy use, GHG emissions, resource use and waste related to
our customers’ networks and products are actual negative
impacts. Climate change mitigation measures such as product
energy efficiency improvements, reduced power consumption
of communication devices and solutions help increase Nokia’s
material positive impact on the environment and reduce the
negative impacts. These kinds of measures are implemented
as part of the R&D phase. Additionally, efforts to improve
product recyclability rates and waste management practices
are ongoing addressing both the identified positive and
negative impacts.
Nokia contributes to decarbonizing other industries and
society, enabling the transition of the energy sector by
providing the critical networks for life and connecting the
unconnected. The connectivity and technologies Nokia provides
serve as a social good, supporting human rights by enabling
freedom of expression, access to information, the exchange
of ideas, and economic development.
The negative impacts on value chain workers are also taken
into consideration, and we are working continuously to actively
mitigate any negative impacts across our value chain, working
with our suppliers to raise the standards in our ecosystem in
key ESG areas. We have established supplier due diligence as
one of the four pillars of our responsible sourcing strategy,
complemented by supplier development and learning and
industry collaboration as key enablers for success, as described
under section ‘Workers in the Value Chain (ESRS S2)’.
Interaction with strategy and business model
These material impacts are taken into account in Nokia’s ESG
strategy and Nokia’s business model. This can be exemplified
by our product energy efficiency strategy, the selection of the
materials we use, our strategy for circularity to reduce waste
and packaging, supplier management, human rights and
stakeholder relationships which require the implementation
of specific actions to reduce the negative impacts.
The design, deployment, and maintenance of our products and
services directly connect to both our positive and negative
impacts, such as managing resource use and ensuring
responsible supply chain practices.
Our responsible and ethical business practices and procedures
support the minimization of negative impacts to our workforce
and continuous audits and monitoring of our suppliers findings
implementation support a more sustainable operation and
supply chain.
Nokia's business strategy and ESG strategy undergo annual
reviews. Over the past year, we have analyzed the current
and anticipated effects of our material impacts, risks, and
opportunities on our business model, value chain, strategy,
and decision-making processes within our Enterprise Risk
Management framework.
Our evaluation identified climate change mitigation, resource
use and circular economy, working conditions of Nokia’s
workforce, including equal treatment and opportunities for all,
and corporate culture under business conduct as the major
influences to ESG strategy.
The escalating volume and complexity of ESG regulations will
necessitate swift adoption of sustainable practices by suppliers
and customers, particularly in the area of energy efficiency.
This demand will drive us to further refine our climate,
sourcing, and reporting strategies, intensify our R&D efforts,
and cultivate even stronger customer engagement.
To address our material impacts and risks, we have
implemented several strategic initiatives, such as defining a
net-zero pathway and transition plans supporting the
commitment to net-zero by 2040, including sustainability
target setting, metrics and results as part of Nokia’s sourcing
and supply chain.
ESG targets
Nokia’s ESG targets presented on the next page are
determined based on Nokia’s business requirements,
sustainability strategy and material topics which are aligned
with different internal groups and functions. When setting our
targets we also take into account stakeholders’ requirements
and input gathered through interaction with Nokia’s customers,
suppliers, investors, non-governmental organizations and other
stakeholders where relevant.
The ESG targets are distributed across short, medium and long
term. All targets presented by Nokia are set voluntarily i.e. the
targets are not mandated by legislation.
The 2024 results, progress against selected targets and more
detailed information about these targets set are presented in
the relevant section of a topical standard. Other metrics in
relation to the material sustainability matters that are defined
in the ESRS or on Nokia specific basis are presented in the
relevant section of a topical standard.
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Our ESG targets
2024
2025
2030
2040
Environmental
Reach 75% reduction of our facilities' GHG
emissions compared to 2019
Use 85% renewable electricity in our own
facilities
Social
A minimum of 28% female hires in global
external recruits
Zero fatal incidents for own workforce, suppliers
and third-parties
Cohort of 60 senior leaders conduct safety
tours to sites to increase monitoring visibility
96% of projects compliant with the
strengthened requirements of our High-Risk
Project Implementation Assessments (HRPIA)
process
Reduction in Total Recordable Incident
Frequency Rate (TRIFR) and Lost Time Incident
Frequency Rate (LTIFR) for Nokia own workforce
Governance
Ethical Business Training (EBT) completed by
95% of employees
Environmental
Use 100% renewable electricity in our own
facilities (RE100)
GHG emission reduction of 80% from scope 1
and scope 2 market-based emissions from a
2019 base year
Social
Harness Nokia technology, capabilities and
funds to improve the lives of 1 500 000 from a
2022 base year through social digitalization
projects, digital skills building, and connecting
the unconnected or underserved
96% of projects compliant with requirement of
HRPIA process
Zero fatal incidents for own workforce, suppliers
and third-parties
Reduce Total Recordable Incident Frequency
Rate (TRIFR) and Lost Time Incident Frequency
Rate (LTIFR) for Nokia own workforce and
suppliers compared to previous year
Cohort of 80 senior leaders to conduct safety
tours to sites
98% 3TG traceability and conflict free status to
smelter level in our supply chain as well as
conflict free status of the smelters. Extended
due diligence and conflict free status of cobalt,
mica, aluminum and copper
80% of suppliers achieve satisfactory
sustainability score from supplier performance
evaluation
Governance
Ethical Business Training (EBT), which includes
ESG (Environmental, Social, Governance)
training, completed by 95% of employees
Environmental
Environmental
SBT Net-Zero(1)
Overall Net-Zero target: Nokia commits to reach net-zero greenhouse gas emissions across the value chain by 2040
Near-term target(1): Nokia commits to reduce absolute scope 1, 2
and 3 GHG emissions by 50% by 2030 from a 2019 base year
Long-term target(1): Nokia commits to reduce
absolute scope 1, 2 and 3 GHG emissions 90% by
2040 from a 2019 base year
Our final assembly suppliers reach zero emissions from a 2019
base year
Our suppliers reduce GHG emissions by 50% from a 2019 base year
Our logistics’ GHG emissions reduced by 73% from a 2019 base year
GHG emissions reduction of 90% from scope 1 and scope 2
market-based emissions from a 2019 base year
95% circularity rate for waste from our offices, labs, own
manufacturing, installation, product takeback and supply chain final
assembly factories
Increase recycled content in mechanical part source materials:
– Cast aluminum used in mechanical parts: to 90%
– Wrought aluminum, steel and copper alloys, as well as
polycarbonate plastics used in mechanical parts: to 50%
Packaging recyclability: Ensure all packaging is 100% recyclable
Recycled material content: Cardboard and plastic packaging
materials to contain at least 50% recycled content
Plastics: Plastic packaging to be limited to no more than 10% by
weight of total primary packaging
Social
Helping our customers to connect the next 2 billion measured by
number of subscriptions in Nokia radio customers’ networks from a
2021 base year
Nokia’s Fiber-to-the-Home technology to connect 140 million new
subscribers from a 2023 base year
100% of suppliers delivering high risk activity to meet “H&S
Recommended and Preferred supplier” status in our HSMA
Achieve share of women to a minimum of 25% of total
employees
Governance
Maintain 85% favorability of employee/line manager
engagement on the importance of ethics and compliance
(1)
The target includes scopes 1, 2 (market-based), 3.1, 3.2, 3.4, 3.6, 3.11. It excludes Submarine Networks discontinued operation.
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Current financial effects of the material risks and
opportunities
Nokia has assessed the financial effects of the material risks
and opportunities for the reporting year 2024.
In the double materiality assessment, we identified a material
risk related to inability to attract, develop and retain a future-
fit workforce with the right skill set and in the right locations as
skilled employees remain critical in our business. We have not
identified such material current financial effects directly
contributed from the identified risk.
In relation to our own workforce, we also identified a material
risk of increase in personnel expense due to increases in
wages or changes in the related practices and regulations.
Our compensation and benefits programs contribute to our
business success by balancing market competitiveness and
affordability based on a total compensation approach. The key
elements of our compensation structures are annual base
salary, incentive/bonus programs, recognition programs and
equity-based long-term incentives. The personnel expenses
per person increased during the financial year compared to the
previous year (refer to the Financial statements, Note 3.1.
Summary of personnel expenses).
We identified a material opportunity related to the transition to
a low carbon economy and we consider energy efficiency to be
one of the key factors in product competitiveness. Any current
financial effects of product competitiveness are reflected in
net sales as presented in the consolidated income statement.
Nokia hardware products are dependent on various minerals
and other virgin substances. It is estimated that if the global
consumption continues to grow, it may lead to material scarcity
and an increase in prices of these materials. Potential financial
effects of this risk are only expected in the long-term and no
actual financial effects for the financial year identified.
Breach of our Code of Conduct or the law in regard to
compliance areas could result in a material financial effect on
Nokia’s financial position, performance or cash flow. In 2024,
no related material financial effects were accounted for.
As described in the section ‘Basis for preparation’, Nokia is not
yet disclosing the anticipated financial effects of the material
risks and opportunities in this Sustainability Statement
following the phase-in provision due to the first year reporting.
The financial effects will be reported in the subsequent periods
in accordance with the applicable requirements.
Resilience of Nokia’s strategy and business model
to address its impacts, risks and opportunities
Nokia's business strategy is enabled by the talent driving our
innovation, research and development, and Nokia’s innovative
approach has enabled it to act resiliently and renew itself. Nokia
has a consolidated global approach for business continuity and
every function regularly maintains business continuity plans.
Nokia is continuously refining its approach to identify material
impacts on people and the environment. As discussed in this
Sustainability Statement, we recognize and aim to mitigate
the potential risks and negative impacts associated with our
business, while also aiming to drive opportunities and positive
impacts within and beyond our business.
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Policies adopted to manage material sustainability matters
The following table outlines Nokia's global policies and their relationship to the material sustainability topics identified. It provides an overview of the key policies which address several
interconnected sustainability matters, demonstrating how each policy aligns with and addresses the relevant sustainability matters. These policies are published on Nokia’s website and are available
for all stakeholders.
Nokia global policies and their relation to material topics
Nokia policies
Scope of the policy
Management body
Relation to material topics
Nokia Code of Conduct
Nokia Code of Conduct is available in a web-based format in 20 languages. It enforces our
values and expectations, and unites all Nokia employees behind a common vision.
The Code of Conduct outlines standards for ethical behavior by Nokia employees and
business partners. It sets out Nokia four key principles and 14 key risk areas.
The Code of Conduct applies to directors, officers, and employees of Nokia, as well as
employees of Nokia’s wholly-owned affiliates and subsidiaries. The Code also applies to
directors, officers, and employees of other business entities (such as joint ventures) in
which Nokia owns a majority of the shares or exercises effective control.
The Code of Conduct includes our basic principles of business conduct and high-level
policy statements related to critical business topics. Policy documents further define,
support, and explain specific policies. Standard Operating Procedures are created, where
needed, to instruct employees on specific procedures to implement the policies. The full
set of supporting policies and related procedures for the Code of Conduct’s risk areas are
available online to our employees and are included in annual mandatory training sessions.
Nokia Board of Directors adopts the Code of Conduct that
applies to directors, executives, and employees of Nokia, as
well as employees of Nokia’s subsidiaries and affiliated
companies (such as joint ventures) in which Nokia owns a
majority of the shares or exercises effective control.
Respective policy/subject matter experts are responsible for
ensuring that our policies and procedures remain up to date
and in accordance with applicable laws and regulations in all
countries where we operate.
Nokia Code of Conduct is applicable
to all material topics identified (E1,
E5, S1, S2, S3, S4, G1)
Environmental policy
The environmental policy is part of the general management process and environmental
considerations are incorporated into relevant business planning, decision making,
implementation and tracking activities. The key commitment outlined in the policy is to
ensure sound environmental management. Nokia continuously seeks to prevent pollution
and to reduce the environmental impacts of its products and services throughout their
life cycle.
The environmental policy is approved by Nokia’s CEO, while
business functions ensure the needed competences, and plan
and implement improvement programs with innovative and
pragmatic solutions.
The environmental policy is
applicable to material topics under
E1 – Climate change and E5 –
Resource use and circular economy
People framework
Nokia’s Global People Framework summarizes the core People principles applicable to
everyone at Nokia – including directors, officers and employees, as well as all companies
and controlled joint ventures that are part of the Nokia Group. It doesn’t cover external
temporary workers and sub-contractors.
Within Nokia’s governance model the People Framework is called a Policy, which governs all
the People processes and practices. The approved regulation for implementing People
processes and practices is called a Standard Operating Procedure (SOP).
All People SOPs are global by definition and apply to all Businesses within Nokia.
SOPs are developed and maintained by the Chief People
Organization. The Leader of the appropriate Portfolio for the
given service, process or practice is the owner. Final approver
is Nokia’s Chief People Officer or delegates.
All People SOP’s and Guidelines are governed by and have to
be in full alignment with the People Framework. In case of
conflict the People Framework prevails.
The People framework is applicable
to material topics under S1 – Own
workforce
Code of ethics
The Code of Ethics complements Nokia’s Code of Conduct and sets out further
expectations for Nokia’s President and Chief Executive Officer, Chief Financial Officer,
Deputy Chief Financial Officer and Corporate Controller (the “Officers”).
The Code of ethics is adopted by the Nokia Board of Directors.
The Code of ethics is applicable to
material topics in G1 – Business
conduct: Corporate culture
Human rights policy
The policy addresses the impact of Nokia products and services on free expression, access
to information, exchange of ideas, and economic development. Policies related to other
human rights, for example rights related to fair labor practices, modern slavery and human
trafficking, and environmental stewardship, are reflected in other Nokia policies.
The policy is adopted by the Nokia Board of Directors and
approved by Nokia’s CEO.
The Human Rights policy is
applicable to material topics in S3 –
Affected communities and S4 -
Consumers and end-users
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Impact, risk and opportunity
management
Description of the process to identify and
assess material impacts, risks and
opportunities
The purpose of the double materiality assessment is to identify
and assess our sustainability-related impacts, risks and
opportunities. The impacts, risks and opportunities that are
deemed material define the information disclosed in this
Sustainability Statement.
Nokia conducted the materiality assessment for both impact
and financial materiality. Impact materiality examines how our
activities affect people, the environment, and society – for
example, how we contribute to climate change or social
inequality. Financial materiality examines how sustainability
matters impact our business, financial performance and
position covering sustainability related financial risks
and opportunities.
ESRS 1 requirements have been considered and followed in
Nokia’s double materiality assessment. The topics, sub-topics
and sub-sub-topics as listed in the ESRS formed the basis
of sustainability matters considered in the materiality
assessment. Additionally, Nokia considered if there are any
entity-specific topics that are not covered in the ESRS.
No such entity-specific topics were identified.
During the double materiality assessment, Nokia engaged
with over 70 internal and external stakeholders, following the
guidelines for stakeholder engagement issued by European
Financial Reporting Advisory Group (EFRAG), who authored the
European Sustainability Reporting Standards. Nokia’s cross-
functional project team comprising internal stakeholders with
expertise on sustainability, business, technology, legal, finance,
employees, risk management and value chain were extensively
involved. An external partner supported and guided Nokia
throughout the assessment and project.
Key steps in the double materiality assessment
The assessment was conducted in four stages: value chain
mapping, impact assessment, financial assessment, and
material topics determination and validation.
Value chain mapping
Nokia developed an aligned overview of Nokia’s value chain,
which consists of its key activities and business relationships,
the context in which these take place, and an understanding
of its key affected stakeholders. Based on this information,
Nokia mapped out the value chain, geographical locations
and the potentially affected stakeholders across the different
value chain activities. The outcome was validated with key
internal stakeholders. The key components of our value chain
are presented in the section Strategy, Business model and
value chain.
Impact assessment
Nokia assessed its actual or potential and positive or negative
impacts on people and environment over the short-, medium-
and long-term across its value chain. The nature of these
impacts was then described and categorized according to
relevant ESRS topics.
The identified impacts were scored based on the impact
materiality scoring methodology. The impact score comprise
two elements: severity and likelihood. Severity is further
defined by scale, scope, and irremediability. For actual negative
impacts, materiality was assessed based on the severity of
the impact. For potential negative impacts, both severity and
likelihood were considered. When scoring potential negative
human rights impacts, severity took precedence over
likelihood. For actual positive impacts, materiality was based
on the scale and scope of the impact for actual impacts, and
for potential positive impacts, scale, scope and likelihood
were considered.
Nokia’s subject matter experts identified, documented, scored,
reviewed and validated the impacts. Information on Nokia’s
impacts was gathered from various sources including existing
stakeholder engagement initiatives, research programs, due
diligence processes and reporting. Impacts were identified on
the defined value chain map level and linked to the relevant
geographical area. The focus was on value chain areas where
impacts are deemed likely to arise.
Furthermore, ten external stakeholders, including business
partners, investors, and NGOs, were interviewed to understand
their perspectives on material ESRS topics and validate
findings. The external interviews were conducted by Nokia’s
partner company. The impacts, risks and opportunities
identified by external stakeholders were considered in the
impacts identification and cross-checked against Nokia’s
impact scoring. Any significant deviations were assessed,
and adjustments made wherever needed.
Financial assessment
Nokia assessed its actual or potential financial implications,
including risks and opportunities, over the short, medium and
long term. Risks and opportunities were identified based on
prior workshops, issues discovered in day-to-day operations
and business interactions, desktop analysis, internal risk
reporting, impact assessment, stakeholder interviews, and
previous assessments, such as the climate-related scenario
analysis conducted in line with Task Force on Climate Related
Financial Disclosure framework (refer to ‘Climate change (ESRS
E1)’ section for further information). These assessments
considered factors across the value chain that could impact
Nokia’s business and financial performance.
The identified risks and opportunities were further assessed,
validated and scored by Nokia’s subject matter experts. The
requirement about inter-relation between impact and financial
materiality was considered in the assessments and identified
impacts, risks and opportunities were cross-referenced. Any
differences between these two were validated to ensure
completeness of the materiality assessment. The financial
effects or risks arising from actions to address sustainability
matters were also considered during the assessments. Each
risk and opportunity was linked to the relevant geographical
area, though many risks and opportunities are global or linked
to several countries.
The identified risks and opportunities were scored based on
the likelihood of occurrence and the estimated magnitude of
potential financial effect.
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Material topics determination and validation
The identified impacts, risks and opportunities were scored
from 0 to 4. In the material topics determination phase, Nokia
assessed and defined the following materiality thresholds:
3.7 for impact materiality and 3.0 for financial materiality.
Impacts, risks, and opportunities exceeding the thresholds are
concluded to be material to Nokia and define the reporting
scope of this Sustainability Statement.
Nokia leadership was interviewed and engaged in validating
the findings and materiality of environmental, social and
governance topics. The double materiality assessment process
and final results were reviewed and approved by the Steering
Committee established to steer ESG Financial Reporting
program and CSRD reporting. The Audit Committee was
informed about Nokia’s double materiality assessment and
results in line with Audit Committee’s responsibility to oversee
sustainability reporting under the new CSRD regulation.
Nokia assesses on an annual basis whether any such changes
in its business model, operations, risk assessment or external
circumstances have occurred which require update or
reassessment of the double materiality assessment in whole
or in part.
Additional topical considerations
Environment
Nokia’s Environmental Management System, environmental
data and climate-related scenario analysis conducted in line
with the Task Force on Climate Related Financial Disclosure
framework were utilized as a basis to identify, assess and score
environmental related impacts, risks and opportunities.
More information regarding climate and resource use and
circular economy is provided in the sections ‘Climate change
(ESRS E1)’ and ‘Resource use and circular economy (ESRS E5)’.
When identifying actual or potential pollution (ESRS E2), water
and marine resources (ESRS E3) and biodiversity (ESRS E4)
impacts, risks and opportunities, Nokia assessed its own
operations, upstream and downstream activities. This
assessment covered, among others:.
■
Nokia’s own facilities’ other than GHG emission and water
consumption data collected annually
■
Substances used in Nokia’s products and packaging
■
Sector specific analysis on materiality and impacts of
commodities on biodiversity
■
Submarine Networks marine operations
■
Protection of Nokia’s forest areas in Finland
To the best of Nokia’s knowledge at the time of the double
materiality assessment, negative impacts were identified but
none of the impacts, risks or opportunities met the materiality
thresholds. Nokia’s climate change mitigation and resource use
minimization actions indirectly contribute to prevent changes
in ecosystems.
Workers in the value chain (S2)
Nokia’s impacts, risks and opportunities connected to workers
in the value chain were identified on the basis of supplier
assessments and audits that Nokia conducts each year,
as well as on the basis of discussions in industry forums,
through stakeholder inquiries and supplier workshops and
webinars. Findings related to working time, wages, health and
safety and forced labor risk were the most frequent findings
in Nokia’s supplier audits in 2024. The information gathered
through this process was used for the identification and
scoring of material impacts, risks and opportunities related
to workers in Nokia’s value chain. Please refer to section
‘Workers in the value chain (ESRS S2)’ for further information.
Business conduct (G1)
For business conduct matters, Nokia’s impacts, risks and
opportunities are identified on the basis of ongoing reviews
of risks presented both internally, including business go-to-
market strategies, and externally, including regulatory changes.
Nokia addresses these risks and opportunities, along with
possible impacts, through a multi-pronged approach that
includes Nokia’s Code of Conduct; a corporate culture of
integrity, which is supported by its comprehensive compliance
training and communication programs; the annual mandatory
“Ethical Business Training” course; effective controls; and well-
defined processes. The topics within the mandatory training
program are rotated every year to raise awareness on high-risk
areas, emerging risks, and key topics. Nokia is continually
improving its compliance controls and processes to ensure a
robust and effective compliance program. Nokia’s culture of
integrity is further supported by its strong speak-up culture,
empowering employees to raise concerns. Concerns are
investigated by the appropriate resources, including the Ethics
and Regulatory Compliance team’s Investigations Group,
which is responsible for the investigation of reported
compliance concerns. Refer to ‘Business conduct (ESRS G1)’
for further information.
Changes compared to the previous materiality
assessment
The double materiality assessment was conducted for the
first time in accordance with the new framework provided by
the Corporate Sustainability Reporting Directive (CSRD) and the
related European Sustainability Reporting Standards (ESRS).
Applying the said standards and methodology as a framework
for our reporting also means that certain topics and sub-topics
included in previous sustainability reports which were aligned
with Global Reporting Initiative (GRI) guidelines did not meet
our materiality threshold. The application of the reporting
threshold does not change our strategic approach to
addressing these topics, which include biodiversity, pollution,
security, and privacy matters. We anticipate future feedback
from stakeholders, peer insights, regulatory developments,
and further ESRS implementation guidance to alter the
outcome of the double materiality assessment in the future.
Integration to Nokia’s Enterprise Risk Management
Sustainability related risks and opportunities are embedded
within our Enterprise Risk Management framework and risk
taxonomy. Nokia Enterprise Risk Management’s purpose is to
ensure that a systematic risk and opportunity identification
and analysis is embedded into financial planning, strategy
creation and operative business management as well as
in key decision making. The Enterprise Risk Management
framework is aligned to the overall Nokia governance model,
where Nokia’s businesses are accountable for meeting
approved plans and targets as agreed within Nokia. Key risks
and opportunities are managed and monitored as part of
business performance management.
Under the Nokia Enterprise Risk Management framework,
Nokia considers event likelihoods, financial impacts and rate
the effectiveness of our risk and opportunity response actions.
The significance of individual risk factors is evaluated against
six different dimensions - the degree of impact to people &
environment, our compliance, reputation, financials, operations
and strategy. Early on in the double materiality assessment
process we ensured that the rating scales align with our
ERM approach.
Furthermore, in the reporting period 2024, the Sustainability
and Enterprise Risk Management teams aligned identified
impacts, risks, and opportunities in the double materiality
assessment with the ERM reporting.
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Climate change (ESRS E1)
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137
Climate change (ESRS E1)
Climate change has been a major topic for Nokia Group for more than a decade and as such we have worked consistently to
develop and refine our approach to understanding and tackling the risks and opportunities that climate change presents to our
business. Equipped with this knowledge, we have been able to make informed business decisions, set goals and targets, and focus
on critical climate actions over the years. Our climate goals include increased energy efficiency in silicon, software, and systems,
providing the networks and operational skills to scale smart energy solutions. We also intend to accelerate our efforts in energy
efficiency in 5G-Advanced and 6G through early engagement in standardization and ecosystem development. Sustainability topics
including climate are integral to our Technology Vision and Strategy 2030 and are reflected in how we operate and the business
decisions we take. Research in Nokia Bell Labs also contributes towards these goals.
Material impacts, risks and opportunities related to climate change mitigation and energy
The materiality assessment reflected that climate change mitigation and energy are material sustainability sub-topics for Nokia.
The following table describes the material impacts, risks and opportunities, as well as how we manage those impacts, risks and
opportunities.
Sub-topic
Material impacts, risks and opportunities
Management
Climate change
mitigation
Positive impact: Substantial contribution to climate
change mitigation through development of energy
and resource efficient products and technologies
With 95% of Nokia’s total scope 1, 2 and 3 GHG emissions resulting
from products in use, we invest significantly in research and
development to continuously improve the energy efficiency of
our products and develop new energy efficient solutions. As the
volume of network traffic rises in a more connected and digitalized
world, we work on separating this growth in traffic from an
equivalent growth in energy consumption.
Climate change
mitigation
Negative impact: Greenhouse gas emissions in
Nokia’s own operations and value chain causing
adverse impact on climate
We manage and try to minimize this negative impact same way as
we manage the above positive impact.
Energy
Negative impact: Use of high carbon intensity energy
sources in connection with usage of our products in
the customer networks contributing to negative
impact on climate
We engage with stakeholders to push for grid decarbonization
and aim to provide digitalization solutions to support renewables
generation and grid transformation in the energy sector. We also
work with our value chain on their journey to transitioning to
renewable energy sources as countries decarbonize their
electricity grids.
Climate change
mitigation
Opportunity: Nokia’s solutions and new innovations
in software, hardware and services enabling other
industries to transition to a low carbon economy
potentially driving revenue growth and open new
revenue streams through new customer segments
and markets
We aim to proactively address changing customer preference
through extensive research and innovation on energy efficient
solutions. We provide low-latency connectivity, private wireless
networks, new IP routing and optical solutions, sensors, and AI/ML
as the basis of the decarbonization through digitalization
proposition in our enterprise portfolio.
We work with a growing range of enterprise partners to provide
solutions which may enable other industries to transition to a low
carbon economy and improve productivity. We collaborate with
companies working on a variety of smart technologies, cloud-based
technologies and automation.
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Our approach to determining material impacts, risks and
opportunities is described under the section ‘General
information’.
Additionally, when identifying, assessing and scoring climate-
related impacts, risks and opportunities, we utilized information
and data from Nokia’s Environmental Management System,
climate-related scenario analysis and GHG emissions reporting.
For environmental topics Nokia has a ISO 14001 certified
Environmental Management System in place to identify
environmental aspects and impacts and related risks and
opportunities, which are reviewed annually. This process covers
all business activities. Environmental aspects are assessed
based on their direct environmental impact, related applicable
regulation, frequency and stakeholder interest. The aspects
exceeding the threshold score set by the company will be
considered as significant, and for them the management
process, targets and responsible contributors are defined.
The annual review process takes into account changes in the
business scope, new products, geographies, regulation and
stakeholder attitude. The identified environmental aspects
where aligned with the impacts, risks and opportunities based
on the double materiality assessment.
GHG emissions data (including the scopes 1, 2 and 3) was used
as the basis for identifying Nokia’s direct and indirect impacts
on climate change, as well as when scoring scale and scope of
the identified impacts.
Climate scenario and resilience assessment
The Task Force on Climate Related Financial Disclosure
framework was used as the basis for the climate resilience
analysis, as well as related risks, opportunities and scenario
assessment completed in March 2024. The following short,
medium, and long-term planning horizons in the context of
climate change were applied:
■
Short term: until 2026 (up to 3 years). This mirrors our
financial planning horizon.
■
Medium term: until 2030 which is the timeline we use in the
context of strategic planning, and reflects the timeline of
our current key science-based climate target (SBT) of 50%
reduction in our total GHG emissions by 2030 (baselined
to 2019).
■
Long term: until 2050 which reflects the common ambition
level for net-zero emissions across the value chain by no
later than 2050, as envisaged in the Paris Agreement.
Physical risks
In the process of identifying and assessing climate change
related physical risks, the SSP3-7.0 scenario was primarily
used, being the likely worst-case scenario based on IPCC Sixth
Assessment Report, considering the climate actions already
taken to limit global warming. This scenario projects the
global average temperatures to increase by 3.6°C above
pre-industrial levels by the end of the century. Climate driven
physical risks considered in the assessment include extreme
heat, heavy rain and snow fall, floods, drought, wildfires, severe
storms and tropical cyclones, sea level rise, water scarcity and
air pollution.
The scoping for risk assessment and scenario building related
to physical climate risks was based on relevant risk areas and
value chain elements which could potentially expose Nokia to
material risk. Our outdoor products and services were assessed
to determine how sensitive those may be to physical climate
change risks. We scoped our assessment to own operations in
critical locations. In the supply chain assessment, we selected a
sample of critical suppliers to study their external disclosures
related to climate change and risks they have identified.
Further, we explored the business implications of the identified
risks and the risk response actions taken with respect to the
relevant risks.
Our scenario analysis showed that our operations and assets
are most exposed to extreme heat, heavy rain and pluvial flood.
So far, we have not experienced material business disruptions
from climate change-related physical risks. By 2050, the
weather extremes will increase in frequency and intensity, but
we have assessed that financial impacts related to those will
remain modest and no physical climate risks were identified
as material in the double materiality assessment.
Transition risks and opportunities
In the process of identifying and assessing climate change-
related transition risks and opportunities, the SSP1-1.9
scenario was primarily used. This is the only scenario that
meets the Paris Agreement’s goal of keeping global warming
to around 1.5°C above pre-industrial temperatures.
We scoped our assessment based on our GHG emissions
footprint and key sectors (energy, transportation, building,
industry/supply) impacting our operations or our carbon
footprint with the assumption that these are the elements
where transitional risks and opportunities may potentially lead
to a material impact. The scoping and assumptions of our
regulatory compliance landscape are based on the European
Union’s climate change actions and related regulations that
are currently generally considered to be among the strictest
and most forward-leaning climate and sustainability regulations
in the world.
The assessment was done on a qualitative basis. In our
assessment to identify key risks and opportunities, we have
considered the shifts needed to limit warming to 1.5°C based
on external evaluations and our own current understanding of
the upcoming regulations impacting Nokia or Nokia’s value
chain. We also examined the worst-case SSP3-7.0 scenario,
i.e. if any other potentially material risks or opportunities
have been omitted using the lower emission scenarios.
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Key assumptions used in the scenario assessment are the
following:
■
Digitalization of industries is a key enabler in the transition
to a lower carbon economy
■
Global electricity consumption increases with new
technologies
■
Energy grid development is modelled on IEA’s World Energy
Outlook 2023 in Net-Zero Roadmap
■
Energy efficiency is an essential component to a low carbon
path and ensuring adequacy of electricity
■
The cost of carbon-intensive inputs, such as energy and raw
materials increases.
■
Customer specific-emission factors are taken into account
in addition to the global energy grid development, in order
to obtain more accurate data on emissions of the use of
sold products; this approach is based on the assumption
that our customers have set net-zero targets and are
transitioning to renewable energy sources faster than the
global grid is decarbonized.
We have conducted the assessment from four perspectives:
shifts in technology, customer requirements, supply challenges
or opportunities, and changes in rules and regulations
potentially directly impacting Nokia’s own operations and
assets. Product energy efficiency and power consumption
are the key product related aspects in the context of climate
mitigation and can be both a risk and/or an opportunity
depending on the competitive market position of our products.
In our assessment we concluded that energy efficiency is an
essential component of the low carbon path regardless of the
scenario chosen. Increased costs of carbon-intensive inputs,
such as energy and raw materials are likely to drive companies
to find savings and improvements in power consumption and
operational efficiency. We consider this as an opportunity as
digitalization and connectivity can support decarbonization
and resource efficiency. We also believe that the continuing
and potentially broader need for connectivity may open new
customer segments and markets. Further, the energy efficiency
of our products and new innovation in silicon, software, hardware
and services may have a significant impact on our product
competitiveness. Based on these considerations, we assessed
climate change mitigation to develop an opportunity for Nokia
which was deemed material in the double materiality assessment.
Additionally, we identified transition risks and opportunities
which did not reach materiality threshold and were not deemed
material in the double materiality assessment. Transition to a
low carbon economy may increase the costs of energy and raw
materials for our supply chain which could cause cost pressure
for us and our customers. Additionally, corporate emissions
reporting requirements, strengthened and expanded carbon
pricing mechanisms, fragmentation of such frameworks, and
increased likelihood of related compliance risks may all increase
costs. Competitiveness of our products and solutions in the
transition to lower carbon networks including product energy
efficiency represents both a risk and opportunity to Nokia.
Further, we identified transition opportunities related to
increased availability of renewable energy and the development
of adaptive capacity to respond to climate change.
In our climate scenario assessment, we also identified material
availability, resource use and circular practices related risks and
opportunities which are discussed in the ‘Resource use and
circular economy’ section.
Resilience
As we further develop a robust and sustainable supply chain
that can best serve our customers, maintaining focus
on resilience is critical. We continuously optimize our
manufacturing, distribution and supplier network across the
regions in which we operate to better serve our customers.
We also leverage artificial intelligence and machine learning
capabilities to better develop our supply chain and factory
network. Our regional approach will not only enable us to
deliver a more rapid response to our customers’ needs,
but also reduce transportation costs and carbon emissions.
As reflected in the material opportunity identified, we are
confident that there is a need for connectivity and that our
purpose and strategy remain intact regardless of the scenario
pathway chosen. Nokia considers that information and
communication technology and systems are essential to build
resilience and to cope with climate change. Digitalization
and enhanced connectivity can transform the way people
communicate, work and live their daily lives. Our technology
can enable industries and cities to digitalize and automate,
driving efficiency and productivity gains while enabling
potential reductions in emissions and the use of resources.
Policies
We have adopted policies to manage our material impacts,
risks, and opportunities related to climate change mitigation
and energy. Nokia tries to prevent environmental pollution
along Nokia’s value chain as it is outlined in its Environmental
policy along with its Code of Conduct. Nokia is committed to
reducing GHG emissions across the value chain in line with our
GHG emissions reduction targets.
Nokia’s Environmental policy is based on the principles of
the ICC Business Charter for Sustainable Development, while
environmental management and ongoing environmental
performance are governed by the certified ISO 14001
Environmental Management System. This ensures a holistic
and structured approach in managing Nokia’s material
sustainability matters. In 2024, Environmental Management
Systems covered 54% of Nokia’s sites and 90% of employees
(excluding discontinued operations).
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The implementation of the policy and its management system
is the responsibility of each business function. The Environmental
policy is publicly available and Nokia follows a proactive and
open communication approach with relevant stakeholders.
Refer to the section General information, ‘Policies adopted to
manage material sustainability matters’ for further information
regarding the Nokia policies.
Product development and Design for Environment
The environmental goals and activities of Nokia are aimed at
applying product life cycle thinking to minimize environmental
impacts as early as possible in the product design and
development process. This makes opportunities available to
improve the environmental performance of the products
including energy efficiency. Nokia’s Design for Environment
guideline addresses regulatory, customer and Nokia requirements
for designers to use in striving to make Nokia products
environmentally responsible, i.e., in line with our policies and
goals for product stewardship and environmental sustainability.
This guideline development and update includes the Nokia
Product Eco-Requirements Roadmap and results from product
Life Cycle Assessments. Nokia employs Life Cycle Assessments
as an important tool in evaluating potential environmental
impacts of a product throughout its life cycle stages.
Supplier requirements
We expect our suppliers to adhere to our Third-Party Code of
Conduct and we provide them with our supplier requirements,
including the Responsible Business Alliance (RBA) Code of
Conduct and Nokia specific sustainability requirements.
Responsible Business Alliance Code of Conduct includes
environmental related requirements, covering Environmental
Permits and Reporting, Pollution Prevention and Resource
Conservation, Hazardous Substances, Solid Waste, Air
Emissions, Materials Restrictions, Water Management,
as well as Energy Consumption and Greenhouse Gas Emissions.
On top of this industry standard, in the area of environment
management, there are also several Nokia specific
requirements toward our suppliers. We require our hardware
suppliers for product materials and final assembly suppliers
to have a documented Environmental Management System
which shall satisfy the requirements of ISO14001 or other
internationally recognized standards. We also require key
suppliers to be ISO 14001 certified, which we track.
We also have implemented environmental requirements and
guidelines for Nokia products, which describe all designs,
products, parts, modules, components, and packaging
materials. This document lists the most significant global
environmental regulations and introduces the Nokia
environmental requirements.
Suppliers are obliged contractually to consider environmental
aspects in all phases of product development, using, for
example, specific Design for Environment methods or
checklists. Suppliers are contractually required to comply
with Nokia product environmental requirements e.g.,
Nokia Substance List. Choices made during these product
development phases must reduce or eliminate negative
environmental impacts as much and wherever possible. As an
example, all reasonable attempts shall be made to improve
energy efficiency of the product and to promote recycling.
Transition plan and actions related to
climate change policies
In 2023, Nokia investigated how to accelerate its net-zero
ambition and defined the related transition plan and levers.
Following this assessment in 2024, Nokia announced that
it is committed to reducing its total global greenhouse gas
emissions (GHG) to net zero across the value chain by 2040,
accelerating its previous target by ten years, and putting it
ahead of the Paris Agreement target of net-zero by 2050.
Nokia is not excluded from EU Paris-aligned benchmarks.
Nokia has defined a net-zero pathway that will help it reduce
emissions across its value chain. Nokia’s GHG emissions and the
estimated decarbonization levers to achieve our 2030 and 2040
targets fall into three main categories. These categories are:
■
Own operations including energy use in facilities and by
fleet which contribute to scope 1 and 2 emissions
■
Upstream activities including purchased goods and services,
capital goods, logistics and business travel which contribute
to scope 3 emissions category 1, 2, 4 and 6
■
Downstream activities including use phase of our products
and solutions which contribute to scope 3 emissions
category 11
Additionally, electricity grid decarbonization has significant impact
on reduction of our GHG emissions. The net-zero pathway also
requires governance, monitoring and reporting actions.
The commitment to net-zero was approved by the Nokia Group
Leadership team and Board of Directors was informed about
the commitment.
The net-zero target has been approved by Science Based
Targets Initiative (SBTi) in January 2025.
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The main decarbonization levers and examples of key actions planned in the net-zero pathway are described and illustrated below.
2025
2030
2040
Decarbonization levers
Targets:
RE100 (scope 2 facilities)
80% reduction scope 1-2
Targets:
90% reduction scope 1-2
SBT: 50% reduction scope 1-2-3
Targets:
SBT Net-Zero by 2040 (scope 1-2-3)
Own operations: Facilities and fleet
(scope 1-2)
100% renewable electricity (RE100)
100% electrification of car fleet
Neutralize residual emissions
Upstream: Embodied
(scope 3, cat 1 and 2)
Engage key suppliers to plan and track decarbonization,
circular products & services
100% decarbonization for final assembly suppliers,
50% for other key suppliers
Circular and low carbon materials product design
Upstream: Logistics and business air travel
(scope 3, cat 4 and 6)
Optimizing transportation modes to minimize emissions
Bio-fuel blend agreements for logistics
Significant reduction in air freight emissions
Downstream: Product use phase
(scope 3, cat 11)
Engage with customers to ensure wide uptake of
renewables
Development of the product portfolio for energy
efficiency gains
Develop decarbonized site energy solutions. Secure
investments in long-term research and disruption
Electricity grid
(scope 3, cat 1 and 11)
Climate dialogue with stakeholders
Value chain dialogue and customer specific factors.
Grid decarbonization leading to GHG emission
reductions(1)
Grid decarbonization leading to further GHG
emission reductions(2)
Governance, monitoring and reporting
Continuous reporting process development including
further digitalization of the emissions data
Enter carbon market to purchase removals
Neutralize residual emissions
(1)
Assumption: Grid decarbonization leading to 48% smaller emission factor compared to base year 2019 based on IEA WEO2023 – Announced Pledges Scenario.
(2)
Assumption: Grid decarbonization leading to 82% smaller emission factor compared to base year 2019 based on IEA WEO2023 – Announced Pledges Scenario.
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■
Own operations - Facilities and fleet (scope 1 and 2):
Nokia aims for complete decarbonization in our facilities
and car fleet. Nokia is committed to using 100% renewable
electricity in its own facilities by 2025. With our car fleet, we
aim to reach the target for our own operations' emissions
by continuing to introduce low-emission vehicles and
transitioning to 100% electric vehicles by 2030.
■
Upstream - Embodied (scope 3, categories 1 and 2): Nokia
will focus on reducing the embodied emissions of its
products, for example by offering circular products, adding
recycled material content into new products and designing
products that use less material while having increased
throughput capacity and functionality. Nokia works with
suppliers on their journey to decarbonizing their operations.
■
Upstream - Logistics and business air travel (scope 3,
categories 4 and 6): Nokia’s action plans that will require
further work include optimizing transportation modes and
route planning, use of decarbonized fuels in logistics and
reducing air freight.
■
Downstream - Product use phase (scope 3, category 11):
With 95% of emissions resulting from products in use
in our customers’ networks, our greatest efforts remain
concentrated on product design and innovation to reduce
the power consumption and improve energy efficiency of
our products across Nokia’s portfolio.
■
Electricity grid (scope 3, categories 1 and 11): Nokia is
engaging with stakeholders to push for grid decarbonization
and provides digitalization solutions to support renewables
generation and grid transformation in the energy sector.
Nokia also works with its value chain on their journey to
transitioning to renewable energy sources as countries
decarbonize their electricity grids.
■
Governance, monitoring and reporting - Carbon removals:
Credible, permanent carbon removals and storage are
expected to be required to neutralize residual emissions to
reach net-zero. Nokia has been examining credible solutions
for carbon removals to support long-term net-zero targets.
■
Other: Nokia has not identified any locked-in GHG emissions
from its key assets nor products. Locked-in GHG emissions
are understood as estimates of future GHG emissions that
are likely to be caused by an undertaking’s key assets or
products sold within their operating lifetime. As Nokia’s
products are electricity powered, the GHG emissions
depend largely on the evolvement of the energy system
as a whole with no delays caused by Nokia’s products.
Nokia Group’s climate strategy, ambition and action plans
address energy efficiency and circularity. Nokia’s business
groups and functions are incorporating the decarbonization
levers and key action plans in their investment and strategy
planning processes. The net-zero pathway is integrated into
Nokia’s overall product portfolio strategy, with the net-zero
modeling targets aligned to these plans.
For the expected main decarbonization levers, which include
the key actions planned, Nokia has estimated and modelled
their quantitative contributions to achieve the GHG emission
reduction targets, covering the target years 2030 and 2040
as well as interim year 2035 as required by ESRS.
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Impact of transition and action plans on
financial planning
Nokia continues to invest in reducing GHG emissions in its
own operations as described in the previous section. These
investments are not considered financially material in terms
of overall investment.
Most of Nokia’s emissions result from sold products when in
use by our customers in relation to the energy use, and Nokia
considers energy efficiency to be one of the key factors in
product competitiveness. Hence, the energy efficiency of
Nokia’s products and solutions continues to be one of the key
areas in its technology development. In 2024, Nokia invested
EUR 4 512 million in research and development (R&D). Energy
efficiency is integrated into overall product development,
and costs and investments to improve energy efficiency of
the product portfolio are not tracked separately nor can be
separated as these are an integral part of Nokia’s technology
and R&D investments.
As stated earlier, Nokia is examining credible solutions for
carbon removal to support long-term net-zero targets. The
future financial impact of such solutions depends significantly
on technology development, maturity of credible carbon
removal markets and carbon pricing fluctuation between 2024
and 2040. Based on net-zero modeling, maximum GHG
emission comprising of scope 1, 2 and 3 emissions to be
compensated in 2040 is 4 million tCO2eq. With the EU
Emissions Trading Scheme (ETS) price EUR 72 per tCO2eq as
of 31 December 2024, this amount equals to EUR 288 million.
Based on Nokia’s initial assessment, potential future
investments in carbon removal units are recorded as intangible
assets until utilized. Upon utilization of carbon credit units,
the corresponding acquisition cost would be expensed and
recorded as operating costs based on this initial assessment.
Many of the climate-related risk response actions are business-
as-usual activities. We have not identified other climate-related
operating expenses nor capital expenditures such as
restructurings, write-downs or impairment of assets due to
climate change which would potentially have a material impact
on financial planning. We also do not foresee material risks
related to access to capital.
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In 2023, Nokia established a Sustainable Finance Framework
that enables the issuance of sustainability-linked financing
instruments and successfully completed an inaugural
EUR 500 million sustainability-linked bond. The Sustainability
Performance Target in the framework is based on Nokia’s
science-based target of a reduction of absolute GHG emissions
across our value chain (scope 1, 2 and 3) measured in metric
tons CO2eq. The bond has a one-time redemption premium
at maturity of EUR 4 million in case Nokia does not meet its
commitment to reduce its greenhouse gas emissions across its
value chain (scope 1, 2 and 3) by 50% between 2019 and 2030.
In 2024, Nokia signed a EUR 250 million loan agreement with
Nordic Investment Bank to co-finance Nokia’s investments in
5G and 6G research and development. These R&D initiatives
aim to enhance productivity and drive advances in next-
generation mobile networks which are expected to improve the
energy efficiency of next-generation products and reduce their
weight, lowering the lifetime carbon footprint of its products.
As Nokia’s taxonomy-eligible economic activities under the
climate objectives ‘Climate change mitigation’ or ‘Climate
change adaptation’ as defined by the EU taxonomy regulation
are 0% of total revenue, Nokia’s climate transition, action nor
resource plans described in this section are not relevant to
the economic activities and KPIs presented in the section
‘Disclosure under the European Union Taxonomy Regulation’.
Progress in implementing the transition plan and
actions taken in 2024
Total GHG emissions were 26 011 608 tCO2eq in 2024.
This represents a reduction of 28% over the previous year
and 36% reduction compared to the base year 2019. This was
mainly driven by reduction in scope 3 category 11 use of sold
products which GHG emissions decreased by 28% compared
to 2023 and 30% compared to the base year 2019.
The key actions taken in 2024 are described below.
Own operations (scope 1 and 2)
Nokia continued to increase the share of total renewable
electricity to reduce scope 2 market-based GHG emissions.
Scope 1 and 2 emissions reduced by 27% compared to 2023
and 76% compared to the base year 2019.
Upstream: Embodied emissions (scope 3, cat 1 and 2)
Nokia works closely with suppliers to improve supplier maturity
around emissions measurement, target setting, roadmaps
and good practices. For final assembly suppliers Nokia is
tracking their roadmap execution at business review meetings
throughout the year as they have the target to reach zero
emissions by 2030 for their scopes 1 and 2. Nokia is having
regular engagements with its 600 larger suppliers, organized
around the CDP Climate program cycle. In addition,
close collaboration is pursued with Nokia’s Joint Design
Manufacturing suppliers as well as supplier categories
with high emission intensity.
In 2024, 408 of Nokia’s key suppliers responded to CDP’s
request to disclose their climate performance information,
while 257 also provided emission reduction targets.
As a result of Nokia’s supplier engagement, gradual reduction
of Nokia’s scope 3 category 1 emissions have been observed.
In 2024, final assembly supplier emissions were reduced by
further 15% compared to 2023 and by 56% from the baseline
year 2019. The total supplier emissions (category 1) were
reduced by 28% compared to 2023 and 77% compared to
the base year 2019.
Downstream: Product use phase
Many of Nokia’s customers are interested in reducing their
power consumption and their emissions, and Nokia considers
energy efficiency to be one of the key factors in product
competitiveness. We also have customers who are interested
in examining new business opportunities that spring from
decarbonization. These developments create new business
opportunities for us as a company and we are releasing and
delivering new innovations that cater for that demand.
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One of the key actions required for reducing GHG emissions
during the product use phase is product energy efficiency
improvements in product development. Key actions taken in
2024 include:
■
Nokia continued to improve the energy efficiency of its
products through incremental as well as generational
hardware improvements;
■
New energy efficiency software features have been released
such as Extreme Deep Sleep mode which can help operators
reduce energy consumption in zero-traffic conditions and
MantaRay Anomaly detection which can identify specific
radio sites to optimize energy consumption as well as
Wavence Sleep modes which can lower the power
consumption of the microwave radios; and
■
New innovations, such as the virtual power plant can enable
operators to use their existing back-up batteries and
contribute to power reserve markets and the grid.
GHG emissions from scope 3 category 11 use of sold products
decreased by 28% compared to 2023 and 30% compared to
the base year 2019. Reduction from 2023 to 2024 was due
to lower sales volumes, power consumption reduction and
product mix. This reduction was offset by 1% increase in
emissions due to the global emission factor, which reflects
the decarbonization development of global electricity grid.
Targets and progress in targets
We have set short-, medium- and long-term climate targets in
key areas. Short- and medium-term targets are put in place to
track and show a pathway to the long-term goal. We track,
measure and report transparently on these targets.
Nokia has set the net-zero target of 2040 to cover scope 1, 2
and 3 GHG emission categories. Those targets are for all Nokia
business groups, covering various business activities, such as
R&D, logistics, operations and suppliers. Our climate targets do
not have any geographical exclusions.
The GHG emissions targets have been set to measure and track
its progress against the net-zero target. The measured scope
1, 2 and scope 3 categories GHG emissions align with the key
actions taken and planned. The waterfall charts modeled
emissions show the targets for 2030 and 2040 and their
decarbonization levers. For this modeling, the climate scenario
of limiting global warming to 1.5°C has been considered.
The consistency and completeness of the near-term (2030)
and long-term (2040) net-zero targets with our GHG inventory
boundaries is ensured by meeting the SBTi requirements and
having the targets validated by SBTi. The baseline will be
updated when any changes in business, such as mergers and
acquisitions, and improvements in the data coverage and
calculation take place. This is done according to thresholds
set by the SBTi and aligned with Nokia financial reporting
consolidation principles.
RE100 Target
Nokia aims to use 100% renewable electricity in its own
facilities by 2025. The target setting is based on the RE100
requirements. In 2024, 87% renewable electricity was used
and the target is on track.
Science Based Target by 2030
In line with the Paris Agreement to limiting global warming to
1.5°C by 2030, Nokia has established emissions reduction
targets according to this scenario. Nokia’s Science Based 2030
Target (SBT 1.5) was approved by the SBTi in 2021 and includes
the near-term target that Nokia commits to reducing its
absolute scope 1, 2 and 3 GHG emissions 50% by 2030 from a
2019 base year. For the reporting year 2024, target coverage
and GHG emissions boundaries are based on the scope
approved by SBTi in 2021. The reporting year 2024 is the
last year Nokia reports this 2021 approved SBT target.
SBT Net-Zero target approved in 2025 is described in the
following chapter.
Scope 1 and 2 includes scope 1&2 facilities, scope 1 car fleet,
and scope 1 marine fleet. The SBT scope 3 includes the
following to Nokia significant categories: category 1 –
purchased goods and services, including final assembly
suppliers with their scope 1 and 2, and marine fleet emissions
of chartered vessels; category 4 – upstream transportation
and distribution; and category 11 – use of sold products,
covering the vast majority of Nokia’s products.
In 2024, Nokia achieved a reduction of 28% in its GHG
emissions covered by this target. The progress is on track.
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Net-Zero target
Net-zero target was approved by SBTi in January 2025. This
includes Nokia’s commitment to reach net-zero GHG emissions
across the value chain by 2040.
The long-term target is to reduce absolute scope 1, 2 and
scope 3 GHG emissions 90% by 2040 from a 2019 base year.
Scope 3 includes the following significant categories to Nokia:
category 1 – purchased goods and services, category 2 – capital
goods, category 4 – upstream transportation and distribution,
category 6 – business travel and category 11 – use of sold
products. As defined in the current corporate net-zero
standards (SBT) V1, after company has achieved its long-term
target to cut emissions, it can use permanent carbon removal
and storage to counterbalance residual emissions up to 10%.
The net-zero target also includes near-term target to reduce
scope 1, 2 and scope 3 categories 1, 2, 4, 6 and 11 GHG
emissions 50% by 2030 from a 2019 base year. The progress
is on track.
Total GHG emissions reduced by 28% compared to 2023 and
36% compared to the base year 2019.
Additionally, Nokia has set the following interim and sub-
targets (2025 targets):
■
GHG emission reduction of 80% from scope 1 and scope 2
market-based emissions by 2025 from a 2019 base year
■
GHG emissions reduction of 90% from scope 1 and scope 2
market-based emissions by 2030 from a 2019 base year
■
Our final assembly suppliers reach zero emissions by 2030
from a 2019 base year
■
Our suppliers (category 1) reduce GHG emissions by 50% by
2030 from a 2019 base year
■
Our logistics' GHG emissions reduced by 73% by 2030 from
a 2019 base year.
GHG emissions (million tons CO2eq)
Reported and targeted GHG emissions
Scope 3 upstream (cat 1, 2, 4, 6), reported
Nokia scope 1&2, reported
Scope 3 downstream (cat 11), reported
Targets
Net Zero linear reduction modelling
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
0
5
10
15
20
25
30
35
40
45
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Our carbon footprint (scope 1 and 2)
Facilities, direct emissions
23 %
Car Fleet
19 %
Facilities, indirect emissions from
purchased energy, market-based
58 %
Our carbon footprint (scope 1, 2 and 3)
Energy use in facilities and by fleet
0 %
Use of sold products
95 %
Purchased goods and services
4 %
Upstream transportation and distribution
1 %
Capital goods
0 %
Business travel
0 %
Our carbon footprint (scope 1, 2 and 3)
Emission Source
Metric tons CO2eq
% of total
Energy use in facilities and by fleet
90 498
0 %
Our scope 1 and 2
market-based emissions
Use of sold products
24 736 044
95 %
Our scope 3 emissions
Purchased goods and services
962 134
4 %
Upstream transportation and distribution
160 178
1 %
Capital goods
33 207
0 %
Business travel
29 547
0 %
Total scope 1, 2 and 3 emissions
26 011 608
100 %
Emission Source
Metric tons CO2eq
% of total
Facilities, direct emissions
21 236
23 %
Our scope 1 emissions
Car Fleet
17 211
19 %
Facilities, indirect emissions from
purchased energy, market-based
52 051
58 %
Our scope 2 emissions
Total scope 1 and 2 emissions
90 498
100 %
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Progress against ESG targets in 2024
Target year
Base year
Base value
Target
2024 results
Target status
E1: Climate change
2030/
2040
2019
40 404 798
SBT Net-Zero(1):
Overall Net-Zero target: Nokia commits to reach net-zero greenhouse
gas emissions across the value chain by 2040.
Near-term target: Nokia commits to reduce absolute scope 1, 2 and 3
GHG emissions 50% by 2030 from a 2019 base year.
Long-term target: Nokia commits to reduce absolute scope 1, 2 and 3
GHG emissions 90% by 2040 from a 2019 base year.
Emissions covered by our SBT Net-Zero were 26 011 608 tons CO2eq(2), which is a 36%
decrease from 2019. This progress is mainly driven by the decrease in emissions from use of
sold products. Given our business and market conditions, we see that there may be possibility
to be above trajectory again in coming years.
The target and metric value excludes Submarine Networks discontinued operation.
On track
2030
2019
35 455 551
SBT 1.5(3), reported last time for 2024:
Reduce our greenhouse gas (GHG) emissions across our value chain
(scope 1, 2 and 3) by 50% between 2019 and 2030.
Emissions covered by our SBT1.5 were 24 592 276 tons CO2eq, which is a 31% decrease from
2019. This progress is mainly driven by the decrease in emissions from use of sold products.
The target and presented metric value includes Submarine Networks discontinued operation
in 2024 and base year.
On track
2030
2019
74 996
Our final assembly suppliers reach zero emissions (part of scope 3
category 1) by 2030.
Our final assembly suppliers' emissions were 32 807 tons CO2eq which is a 56% reduction
from 2019.
On track
2030
2019
4 225 716
Our suppliers reduce GHG emissions (scope 3 category 1) by 50% by
2030.
Our suppliers' emissions were 962 134 tons CO2eq which is a 77% reduction from 2019.
However, as this includes emissions data from hundreds of suppliers and the quality of
allocated emissions data has been of concern, we are conscious that some of the reductions
may be due to the quality of the data reported.
The target and metric value excludes Submarine Networks discontinued operation.
On track
2030
2019
303 630
Our logistics' GHG emissions (scope 3 category 4) reduced by 73% by
2030.
Our logistics' emissions were 160 178 tons CO2eq which is a 47% decrease from 2019.
The target and metric value excludes Submarine Networks discontinued operation.
On track
2025
2019
444 500
GHG emission reduction of 65% from scope 1 and scope 2 market-
based emissions, including 85% reduction of our facilities' GHG
emissions by 2025(4)
GHG reduction of 63% from scope 1 and 2, including 78% reduction of our facilities' GHG
emissions compared to 2019.
The target and presented metric value includes Submarine Networks discontinued operation
in 2024 and base year.
On track
2024
2019
348 347
Reach 75% reduction of our facilities' GHG emissions (scope 1 and 2
market-based) by 2024.
In 2024, we achieved the target with 78% reduction of our facilities GHG emissions compared
to 2019.
This target and presented metric value includes Submarine Networks discontinued operation
in 2024 and base year.
Achieved
2025
2021
53%
Use 100% renewable electricity in our own facilities (RE100).
In 2024, 87% of electricity was renewable in our own facilities.
The target and presented metric value includes Submarine Networks discontinued operation
in 2024.
On track
2024
2021
53%
Reach 85% renewable electricity in our own facilities.
In 2024, we have achieved the target with 87% of renewable electricity in our own facilities.
This target and presented metric value includes Submarine Networks discontinued operation
in 2024.
Achieved
(1)
The target includes scopes 1, 2 (market-based), 3.1, 3.2, 3.4, 3.6, 3.11. It excludes Submarine Networks discontinued operation.
(2)
CO2eq = carbon dioxide equivalents.
(3)
In 2021 approved, 1.5 degrees Celsius aligned, SBT covers the following: Scope 1: emissions from our facilities, car fleet and marine fleet, own vessels. Scope 2: market-based emissions from purchased energy. Scope 3: 3.1 covering 6% of purchased goods and services
with final assembly factories S1&2 in our supply chain, and marine fleet chartered vessels, 3.4 logistics, 3.11 covering 98% of the customer use of sold products.
(4)
In 2025, the target is replaced with "GHG emission reduction of 80% from scope 1 and scope 2 market-based emissions" due to discontinued Submarine Networks operations.
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Disclosure tables
Nokia continuing operations
As outlined in the section ‘Basis for preparation’ within ‘General Information’, metrics are
presented separately for Nokia continuing operations and discontinued operations comprising
Submarine Networks. Disclosure tables presented in this section include continuing operations
(Nokia Group excluding Submarine Networks) both for the reporting year 2024 and comparative
period 2023 unless otherwise indicated. Key metrics for the discontinued operation for the
reporting years 2024 and 2023 are disclosed separately below this section.
Energy consumption per source related to own operations
Energy consumption (MWh)
2024
2023
Total energy consumption from renewable sources
728 242
668 540
Consumption of purchased or acquired electricity, heat, steam, and
cooling from renewable sources
727 802
Not reported
Consumption of self-generated non-fuel renewable energy
440
Not reported
Percentage of renewable sources in total energy consumption (%)
72 %
65 %
Total energy consumption from fossil and nuclear sources
276 964
365 507
Fuel consumption from crude oil and petroleum products
1 012
1 000
Fuel consumption from natural gas
111 954
106 134
Consumption of purchased or acquired electricity, heat, steam, or cooling
from fossil and nuclear sources
163 998
258 373
Percentage of fossil sources in total energy consumption (%)
28 %
35 %
Total energy consumption related to own operations
1 005 206
1 034 047
The above table includes facilities and excludes energy consumption related to car fleet which is expected to amount to max 5% of the
total energy consumption presented in the table.
Production of non-renewable energy and renewable energy
Energy production (MWh)
2024
2023
Non-renewable energy production
15 377
Not reported
Renewable energy production
440
Not reported
Total energy production
15 817 Not reported
Energy consumption in Nokia facilities and of the sold products
Energy consumption (MWh)
2024
2023
Energy consumption by type in Nokia facilities
Electricity
817 049
848 913
Heating
24 993
28 000
Cooling
50 198
50 000
Fossil gas
111 954
106 134
Fossil oil
1 012
1 000
Biofuel
0
0
Facilities' energy consumption, total
1 005 206
1 034 047
Direct energy
112 966
107 134
Indirect energy
892 240
926 913
Facilities' energy consumption, total
1 005 206
1 034 047
Energy consumption outside of Nokia
Energy consumption of the sold products
53 077 484
74 650 000
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Gross scopes 1, 2, 3 and Total GHG emissions
Scope 1 GHG emissions (tCO2eq)
2024
2023
Gross scope 1 GHG emissions (tCO2eq)
38 447
39 331
GHGs from fuel combustion in facilities (stationary and mobile sources)
20 523
19 631
Hydro-Fluoro-Carbon (HFC) refrigerants in facilities
713
400
Car fleet
17 211
19 300
Scope 2 GHG emissions (tCO2eq)
2024
2023
Gross location-based scope 2 GHG emissions (tCO2eq)
313 865
320 659
Purchased electricity
299 370
305 959
Purchased cooling
8 833
8 400
Purchased heating
5 662
6 300
Gross market-based scope 2 GHG emissions (tCO2eq)
52 051
83 924
Purchased electricity
39 267
70 924
Purchased cooling
8 833
8 400
Purchased heating
3 951
4 600
Significant scope 3 GHG emissions (tCO2eq)
2024
2023
Total gross indirect (scope 3) GHG emissions (tCO2eq)
25 921 110
35 917 018
1 Purchased goods and services
962 134
1 344 470
2 Capital goods
33 207
33 748
4 Upstream transportation and distribution
160 178
140 900
6 Business travel
29 547
29 327
11 Use of sold products - (with global average factor)
24 736 044
34 368 573
Total GHG emissions (tCO2eq)
2024
2023
Total GHG emissions (location-based) (tCO2eq)
26 273 422
36 277 008
Total GHG emissions (market-based) (tCO2eq)
26 011 608
36 040 273
Nokia SBT 1.5 (tCO2eq), including Submarine Networks
24 592 276
34 319 800
Additional information on gross scopes 1, 2 and 3 GHG emissions
Scope 2 GHG emissions (%, tCO2eq)
2024
2023
Percentage of contractual instruments used for the purchase of energy(1)
81 %
Not reported
Biogenic emissions of CO2 from combustion or bio-degradation of
biomass not included in scope 2 GHG emissions, tCO2eq
2 357
Not reported
Scope 3 GHG emissions (%)
Percentage of GHG scope 3 calculated using primary data
97 %
Not reported
(1)
Percentage of contractual instruments includes Submarine Networks (discontinued operation).
Emissions intensity based on net revenue and car fleet kilometers
Emissions intensity
2024
2023
Total scope 1, 2 and 3 GHG emissions intensity, location-based (tCO2eq per
net sales EURm)
1 367
1 716
Total scope 1, 2 and 3 GHG emissions intensity, market-based (tCO2eq per
net sales EURm)
1 353
1 705
Total scope 1 and 2 GHG emissions intensity, market-based (tCO2eq per net
sales EURm)
5
6
Car fleet (gCO2eq/vehicle-km)
82
91
The denominator in the calculation of the GHG emissions intensity metrics is net sales as presented in Nokia’s consolidated income
statement.
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Retrospective
Milestones and target years
Scope 1 GHG emissions (tCO2eq)
2019
(base year)
2024
2023
YoY change %
2025
2030
2040
Change %
Annual target / Base year
Scope 1 GHG emissions (tCO2eq)
50 047
38 447
39 331
(2) %
N/A
N/A
N/A
(23) %
Scope 2 GHG emissions (tCO2eq)
2019
(base year)
2024
2023
YoY change %
2025
2030
2040
Change %
Annual target / Base year
Gross market-based scope 2 GHG emissions (tCO2eq)
325 177
52 051
83 924
(38) %
N/A
N/A
N/A
(84) %
Total market-based scope 1 and 2 GHG emissions (tCO2eq)
375 224
90 498
123 255
(27) %
75 045
37 522
N/A
(76) %
Significant scope 3 GHG emissions (tCO2eq)
2019
(base year)
2024
2023
YoY change %
2025
2030
2040
Change %
Annual target / Base year
1 Purchased goods and services
4 225 716
962 134
1 344 470
(28) %
N/A
481 067
N/A
(77) %
2 Capital goods
123 650
33 207
33 748
(2) %
N/A
N/A
N/A
(73) %
4 Upstream transportation and distribution
303 630
160 178
140 900
14 %
N/A
81 980
N/A
(47) %
6 Business traveling
70 648
29 547
29 327
1 %
N/A
N/A
N/A
(58) %
11 Use of sold products
35 305 929
24 736 044
34 368 573
(28) %
N/A
N/A
N/A
(30) %
Total GHG emissions (tCO2eq)
2019
(base year)
2024
2023
YoY change %
2025
2030
2040
Change %
Annual target / Base year
Total GHG emissions (market-based) (tCO2eq)
40 404 797
26 011 608
36 040 273
(28) %
N/A
20 202 399
4 040 480
(36) %
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Discontinued operations
Energy consumption per source related to own operations
Energy consumption (MWh)
2024
2023
Total energy consumption from renewable sources
21 259
5 460
Consumption of purchased or acquired electricity, heat, steam, and
cooling from renewable sources
21 163
Not reported
Consumption of self-generated non-fuel renewable energy
96
Not reported
Percentage of renewable sources in total energy consumption (%)
66 %
18 %
Total energy consumption from fossil and nuclear sources
11 126
25 493
Fuel consumption from crude oil and petroleum products
0
0
Fuel consumption from natural gas
10 733
10 866
Consumption of purchased or acquired electricity, heat, steam, or cooling
from fossil and nuclear sources
392
14 627
Percentage of fossil sources in total energy consumption (%)
34 %
82 %
Total energy consumption related to own operations
32 385
30 953
The above table includes own facilities of Submarine Networks.
Energy consumption (MWh)
2024
2023
Energy consumption in Nokia fleet
Marine fleet (Fossil oil use)
379 411
343 000
Marine fleet (Biofuel use)
0
4
Gross scopes 1, 2, 3 and Total GHG emissions
Scope 1 GHG emissions (tCO2eq)
2024
2023
Gross scope 1 GHG emissions (tCO2eq)
75 811
71 869
GHGs from fuel combustion in facilities (stationary and mobile sources)
1 945
1 969
Hydro-Fluoro-Carbon (HFC) refrigerants in facilities
0
0
Marine fleet
73 866
69 900
Scope 2 GHG emissions (tCO2eq)
2024
2023
Gross location-based scope 2 GHG emissions (tCO2eq)
1 827
1 741
Purchased electricity
1 827
1 741
Purchased cooling
0
0
Purchased heating
0
0
Gross market-based scope 2 GHG emissions (tCO2eq)
196
876
Purchased electricity
196
876
Purchased cooling
0
0
Purchased heating
0
0
Significant scope 3 GHG emissions (tCO2eq)
2024
2023
Total Gross indirect (scope 3) GHG emissions (tCO2eq)
123 809
179 905
1 Purchased goods and services
102 721
112 956
2 Capital goods
5 670
6 349
6 Business travel
1 287
1 373
11 Use of sold products - (with global average factor)
14 131
59 227
Total GHG emissions (tCO2eq)
2024
2023
Total GHG emissions (location-based) (tCO2eq)
201 447
253 515
Total GHG emissions (market-based) (tCO2eq)
199 816
252 650
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Reporting principles for metrics
Nokia has an internal document, the Environmental data
handbook, where the key data collection and reporting
principles are defined, including for example, data boundaries,
data collection methodologies, used tools, and emission
factors. The key reporting methodologies and principles are
explained in this section
Energy consumption
Energy data covers stationary and mobile sources’ combustion
of fuels and consumption of electricity, heat, and cooling in
facility operations.
Energy consumption data is typically collected from facility-
level responders, obtained from invoices or metered data.
For facilities with no data availability, usage of 2024 data is
estimated with data gap corrections or employing annual
intensity factors based on kWh/m2 (electricity and natural gas),
as calculated from the reporting sites, thereby accounting for
100% (2023: 100%) of Nokia facilities. Subleased areas are not
covered in the facility data.
GHG emissions
Our approach to measuring greenhouse gas emissions follows
the Greenhouse Gas (GHG) Protocol developed by the World
Resources Institute (WRI) and the World Business Council for
Sustainable Development (WBCSD). We use the following
three standards:
■
The Greenhouse Gas Protocol, A Corporate Accounting and
Reporting Standard;
■
GHG Protocol, scope 2 guidance, An amendment to the GHG
Protocol Corporate Standard; and
■
Corporate value chain (scope 3), Accounting and reporting
standard, Supplement to the GHG Protocol Corporate
Accounting and Reporting Standard.
The GHG Protocol defines three scopes of CO2eq emissions:
■
Scope 1 – direct emissions, from sources owned or
controlled by the company
■
Scope 2 – indirect emissions, from the consumption of
purchased electricity, heat, and/or steam (location-based
and market-based)
■
Scope 3 – indirect emissions, as a consequence of the
activities of the company, but from sources not owned
or controlled by the company.
Nokia reports the emissions as CO2 equivalents (CO2eq) as
per GHG Protocol’s guidance. CO2eq is the universal unit of
measurement to indicate the global warming potential (GWP)
of the greenhouse gases in the Kyoto protocol, expressed
in terms of the GWP of one unit of CO2eq. Nokia uses
International System of Units (SI) units in reporting and tons
CO2eq is equivalent to 1000 kg CO2eq.
Nokia uses the operational control approach for setting
organizational boundaries for our GHG emissions inventory. We
use emission factors available in the beginning of the reporting
year for scope 1, 2 and 3 calculations. Where we use emission
factors developed by the International Energy Agency, OECD/
IEA, the emission calculations have been prepared by Nokia
and do not necessarily reflect the views of the International
Energy Agency.
Scope 1 emissions
Direct CO2eq emissions from Nokia facilities include GHG
emissions resulting from the combustion of oil and gas within
Nokia facilities, along with minor direct releases of GHGs
associated with refrigerant leakage from facilities’ cooling
systems and firefighting equipment.
Direct CO2eq emissions from Nokia’s car fleet are tracked by
obtaining information from country-specific leasing suppliers,
which are consolidated into one system. Emissions calculation
is based on actual driven mileage and official CO2eq emission
value per km of each car make and model. Applicable emission
factors are sourced from car manufacturers. In the case that
the distance traveled is not available from the leasing supplier,
the budgeted annual mileage in the leasing contract is used
for calculation. The coverage of primary emissions has been
estimated to include 95% of the total emissions from Nokia’s
car fleet and the remaining 5% has been included as an
estimate in the reported value.
Direct CO2eq emissions from marine fleet (Submarine
Networks discontinued operation) are calculated based on
the fuel type and fuel usage of marine vessels. Submarine
Networks maintains a listing of all owned marine fleet vessels
with associated fuel consumption.
Scope 2 emissions
Indirect CO2eq emissions include emissions from purchased
electricity, heating, and cooling. As per GHG Protocol
definitions, the location-based accounting method quantifies
scope 2 GHG emissions based on average energy generation
emission factors for defined locations, including local,
subnational, or national boundaries. Location-based emission
factors are obtained from EPA eGrid for the USA and for all the
other countries we use IEA Emission factors developed by the
International Energy Agency, OECD/IEA.
The market-based accounting method quantifies scope 2 GHG
emissions based on the emissions emitted by the generators
from which the reporter contractually purchases electricity
bundled with instruments, or unbundled instruments on their
own. In our case, applicable market-based residual emission
factors are employed for sites located in Europe (obtained
from the Association of Issuing Bodies (AIB)), the USA and
Canada (obtained from Green-e). Those sites that purchase
certified renewable electricity are assigned an emission factor
of zero based on the quantity of green energy employed. If
supplier-specific emission factors are not available, location-
based emission factors are applied.
GHG emissions associated with purchased steam and heat
are calculated employing the applicable EPA emission factor,
which is based on the assumption that natural gas was used
to fuel a boiler exhibiting an efficiency of 80%. GHG emissions
associated with purchased chilled water and cooling are
calculated employing the same country emissions factors
as electricity, based on an assumed efficiency of 100%.
Emissions avoided due to the purchase of renewable energy
are verified utilizing bundled and unbundled Energy Attribute
Certificates.
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Scope 3 emissions
For significant scope 3 categories, the calculation methodology
for estimating emissions is described. For non-relevant scope 3
categories, an explanation of exclusion is provided. Significance
of each category has been determined based on reporting
threshold, relevance for Nokia business, externally published
targets, and stakeholder interest. The estimated share of the
excluded scope 3 categories is less than 2% of Nokia’s total
reported GHG emissions:
■
Purchased goods and services (category 1): final assembly
suppliers, and other suppliers. Data was recalculated for
2019-2023 due to reporting methodology change. Earlier
Nokia reported supplier’s scope 1&2 data, now with the new
method we report supplier’s scope 1, 2 and 3 upstream
emissions. Final assembly supplier scope 1&2 data is
collected directly from those suppliers. Other suppliers
CO2eq emissions are reported based on data collected
with CDP Climate Survey. The data collected from Nokia’s
suppliers covers 61% of supplier spend in 2024. For the
remaining share, the emissions are extrapolated based on
Nokia’s total spend. 2024 disclosure is based on the latest
CDP data representing suppliers’ year 2023 emissions. We
use a hybrid method, using emissions allocated for Nokia by
the suppliers and also intensity based (GHG/€) allocation,
where allocated emissions were not available, or allocation
was not reliable based on different internal quality
measures. To avoid double counting, the following data is
excluded from this category: scope 1 (from car fleet and
marine fleet), scope 3 category 4 (upstream transportation
and distribution), and scope 3 category 6 (business air
travel). We recognize that this emission category includes a
lot of uncertainty, as suppliers have variable quality in their
own reporting and in allocating emissions to Nokia. We have
also recognized data gaps of ancillaries and survey marine
fleet presented as discontinued operations.
■
Capital goods (category 2): Data was recalculated for
2019-2023 due to reporting methodology change. Scope 3
category 1 and 2 are calculated together. Category 2 is
separated from category 1 emissions and reported based
on Property, plant and equipment (PPE) additions.
■
Upstream transportation and distribution (category 4):
Data includes emissions from inbound and outbound
logistics paid by Nokia. Reporting is done in real weight,
by using EPA’s CO2eq emission factors or logistics supplier
own factors.
■
Business travel (category 6): emissions are reported for
business air travel, which has the biggest impact out of
all business travel modes. Travel information is obtained
from our assigned Travel Agencies. Supplied data includes
distance traveled, delineated by flight distance ranges and
cabin class. Data from travel agencies is consolidated in a
system which is used to calculate emissions from air travel.
Emissions factors are obtained from EPA.
■
Use of sold products (category 11): The calculation formula
is following: Σ [total lifetime expected uses of products
(hours) x number of products sold in reporting period x
product power consumption (kW) x emission factor for
electricity (kg CO2eq/kWh)]. Data covers hardware products.
Product use time varies between 6 and 15 years, depending
on the products. Energy use calculations are based on
product group specific standards, for example, by ETSI,
wherever standards have been published. Calculations are
based on the assumption that all products are powered by
grid electricity. We use the IEA’s latest world average CO2eq
emission factor available in the beginning of the reporting
year. The share of energy consumption and GHG emissions
from the products covered by this data is estimated to be
over 98% of the total sold products in 2024. The remaining
share has been included as an estimate in the reported value.
■
Fuel and energy related activities not included in scope 1
and 2 (category 3): not presently being reported, because
emissions evaluated to be non-material.
■
Waste generated in operations (category 5): not reported as
emissions are evaluated to be non-material.
■
Employee commuting (category 7): not reported as
emissions are evaluated to be non-material.
■
Upstream leased assets (category 8): not presently being
reported as leased vehicles and facilities are presently
included in scope 1 and 2 emissions.
■
Downstream transportation and distribution (category 9):
not assessed, Nokia reports transportation paid by Nokia,
see scope 3 category 4.
■
Processing of sold products (category 10): not considered
relevant because processing is not required for sold Nokia
products.
■
End-of-life treatment of sold products (category 12): not
reported as emissions are evaluated to be non-material.
■
Downstream leased assets (category 13): not reported as
emissions are evaluated to be non-material.
■
Franchises (category 14): not applicable, as Nokia does not
have franchises.
■
Investments (category 15): not reported as emissions are
evaluated to be non-material.
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Resource use and circular economy (ESRS E5)
Material impacts, risks and opportunities related to resource use and circular economy
The double materiality assessment showed that resource inflows, resource outflows and waste are material sub-topics for Nokia. The following table describes the material impacts, risks and
opportunities as well as how they are managed by Nokia.
Sub-topic
Material impacts, risks and opportunities
Management
Resources inflows
Positive impact: Secondary use of Nokia’s products and use of secondary materials in
Nokia’s products prevent generation of waste, contribute positively to material
availability and land use.
Besides Nokia supplier requirements, business groups are looking for opportunities to reduce the
dependency of virgin materials, continuously increase recycled content in our products and packaging as well
as increase use of refurbished secondary products. Nokia has targets in place to increase recycled content in
sourced mechanical materials with the highest use. In addition, Nokia has a packaging target to increase
recycled content and recyclable materials in packaging.
Resources inflows
Negative impact: High use of primary raw materials in our hardware components where
mining and melting of virgin materials has significant negative environment impacts,
including waste.
We manage and try to minimize this negative impact the same way as we manage the above positive
impact.
Resources inflows
Risk: Nokia hardware products are dependent on various minerals and other virgin
substances. If global consumption continues to grow, it may lead to material scarcity
likely resulting into increased prices.
We manage this risk the same way as we manage the above positive and negative impacts.
Resource outflows
Positive impact: Applying circular design and business principles increase the
recyclability of Nokia’s products which further enables recycling of the products and the
raw materials contained in them.
Nokia has a Design for Environment program in place, which provides R&D teams with guidelines regarding
the balances involved in the choice of materials when improving durability, dismantling, reparability,
recyclability as well as product weight and supply risk. Reliability, product lifetime and serviceability are very
much part of the technical requirements for each product. We aim to continue our Design for Environment
program, particularly taking into consideration the evolution of product materials (incl. recycled metals and
plastics) and their availability as well as materials efficiency improvements.
Resource outflows,
Waste
Negative impact: Nokia sells to its customers a significant amount of hardware products
which at the end of their lifecycle will become electronic waste, unless handled and
recycled appropriately.
Most of our products have a design life of between 10 and 15 years, with some of our products remaining
in extended service for more than 20 years. We have environmentally beneficial circularity practices in place
such as product takeback, refurbishment and recycling services.
Nokia Circular Products and Services consists of four modules that can be customized to meet e2e
customer requirements:
■Asset Recovery: Reacquiring (takeback/buyback) and handling customer dismantled surplus products
including consultation, logistics and project management;
■Circular Products and Parts: Selling circular products and parts to operators looking to expand their
network using circular products;
■Refurbishment Service: Extending hardware lifetime but also testing and validating of customer-owned
dismantled product equipment for reuse in the network; and
■Recycling Service: Maximizing material recycling and minimizing landfill, e-waste management.
Waste
Positive impact: Reduction or prevention of waste generation in Nokia’s own operations
and value chain, including appropriate handling and recycling of our products
contributes positively to material availability and land use.
Nokia aims to improve waste management practices across the value chain. This includes minimization of
waste creation and maximization of waste utilisation to reduce landfill. The progress is measured and
tracked by circular metric to guide our operational circularity journey. In 2024, Nokia set new sustainability
targets for packaging, recognizing it as an important area for reduce and prevent negative impacts on land
use and biodiversity.
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Nokia approach to determining material impacts, risks and
opportunities is described under the ‘General information’
section. Additionally, when identifying, assessing and scoring
impacts, risks and opportunities related to circular economy
and resource use, Nokia uses information and data from its
Environmental Management System and existing reporting.
For environmental topics Nokia has a ISO 14001 certified
Environmental Management System in place to identify
environmental aspects and impacts and related risks and
opportunities, which are reviewed annually. This process covers
all business activities. Environmental aspects are assessed
based on their direct environmental impact, related regulation,
frequency and stakeholder interest. Aspects scoring above the
threshold set by Nokia are considered as significant, and for
them the management process, targets and responsible
contributors are defined. The annual review process takes
into account changes in the business scope, new products,
geographies, and regulatory and stakeholder development.
Data related to waste, waste circularity, material use and
recycled content related data was used as the basis for
identifying Nokia’s direct and indirect impacts on circular
economy and resource use as well as when scoring the scale
and scope of the identified impacts.
Out of Nokia’s four business groups, the business groups
Mobile Networks and Network Infrastructure have the largest
direct and indirect impact on the identified material positive
and negative impacts as well as potential effect of the risk.
Nokia’s main hardware products are telecommunication
products which comprise technical components including
minerals, metals and polymers. Product packaging materials
include wood- and plastic-based materials.
Policies
Nokia looks at circularity from two perspectives. First, how
Nokia can increase the usage of non-virgin materials in the
creation of new products and packaging. Second, how it can
ensure maximum waste circularity in its operational value chain.
Material efficiency, the optimized use of resources, and
digitalization are key contributors to increasing circularity.
Traditional ownership of goods is changing to access to
services and to the use of digital platforms for a sharing
economy, all of which can improve circularity. Nokia strategy
to increase operational circularity follows the classic waste
hierarchy. The first principle of the hierarchy is always the
avoidance of waste, which Nokia does through digitalization,
operational efficiency and product life extension. As Nokia
cannot dematerialize everything, good waste management
practices are important.
The Nokia’s Code of Conduct is the Company’s highest-level
policy, which also covers its commitment to the environment
in its own operations, supply chain and business relationships.
The Code of Conduct and Environmental policies covering
matters related to circular economy and resource use are
part of the general management process, and environmental
considerations are incorporated into relevant business
planning, decision making, implementation and tracking
activities. Through these policies, Nokia seeks to reduce the
negative environmental impacts of its products and services
throughout their life cycle. Nokia collaborates with its suppliers,
customers, and other stakeholders with the aim of minimizing
the potential negative environmental impacts as well as
maximizing the potential of technology used for the good of
the environment and society. Refer to the section General
information, ‘Policies adopted to manage material
sustainability matters’ for further information regarding the
Nokia policies.
Product development and Design for Environment
The environmental goals and activities of Nokia are aimed at
applying product life cycle thinking to minimize environmental
impacts as early as possible in the product design and
development process. This makes opportunities available for
the designer to improve the environmental performance of the
products. Nokia’s Design for Environment guideline addresses
regulatory, customer and Nokia requirements for designers to
use in striving to make Nokia products environmentally
responsible.
In practice, Design for Environment uses design practices
aiming to achieve:
■
Minimized material and energy use;
■
Maximized reuse and recycling;
■
Minimized use of materials detrimental to the environment;
■
Equipment designed to be easily or remotely maintainable
or maintenance-free.
The development and update of these guidelines are based on
the Nokia Product Eco-Requirements Roadmap and results
from product Life Cycle Assessments. Nokia employs Life Cycle
Assessments as an important tool in evaluating the potential
environmental impacts of a product throughout the stages of
its life cycle.
Packaging
In the area of packaging, Nokia has set new targets to increase
recyclable packaging, increase recycled packaging material
content and limit plastic packaging (see more details below
in the section ‘Targets and progress’.
Nokia has outlined the packaging requirements and standards
recommended by Nokia, including Original Equipment
Manufacturer (OEM) packaging and shipping to Nokia facilities
or customers. The guidelines have dedicated environmental
requirements, such as banned or not recommended/allowed
materials, as well as wood packaging materials, and the reuse
of packaging parts, covering the end-to-end process: inflows,
outflows and waste minimization such as reuse and recycling.
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There are two other relevant guidelines in addition to the ones
discussed above. Nokia’s Guideline to Reuse of Packaging
Material is a significant cost-saving option that will also
contribute to environmental impact, though this is more
related to outflows and circularity. Factory inbound packaging
guidelines include requirements for Nokia’s suppliers regarding
packaging materials utilized for inbound goods sent to Nokia
manufacturing facilities.
Waste management
In the area of product hardware take-back inflows, Nokia
business groups have Circular Operations teams to manage
take-backs, with established practices and principles.
Business groups will further develop procedures and practices
to reinforce secondary reused and recycled materials
and products.
Electronic Waste Management policies and guidelines outline
Nokia’s minimum environmental and, health and safety
requirements for e-waste management to ensure that the
appropriate regulatory requirements and best practices for e-
waste management are in place to limit the impact on human
health and the environment and avoid significant future
liability, litigation and expenses.
In the guidelines of facilities waste management, the basis of
the Environmental Management Systems in Real Estate (RE)
and the requirements of ISO 14001 standard are described.
The guidelines give an overview of how Nokia’s Real Estate’s
activities and procedures are managed from an environmental
perspective. Nokia has set minimum requirements for waste
management within its facilities to meet its Real Estate targets.
Waste is a significant environmental aspect for Nokia,
particularly waste from its facilities, and these guidelines set
out the responsibilities, requirements, available tools, training,
and resources available to support the implementation of good
waste management practices. These guidelines apply to all
Nokia facilities including manufacturing, R&D, and offices
globally and are designed to support the effective
management of waste for all facilities.
In the area of network installation services, Nokia conducts
environmental impact assessments upon contractual terms
with customers.
Supplier requirements
Nokia expects its suppliers to adhere to its Third-Party Code of
Conduct and provides them with its Supplier Requirements,
including the Responsible Business Alliance’s Code of Conduct
and Nokia-specific sustainability requirements. The Responsible
Business Alliance’s Code of Conduct includes environment-
related requirements, covering Environmental Permits and
Reporting, Pollution Prevention and Resource Conservation,
Hazardous Substances, Solid Waste, Air Emissions, Materials
Restrictions, Water Management, as well as Energy
Consumption and Greenhouse Gas Emissions.
On top of this industry standard, in the area of environmental
management, there are also several Nokia-specific
requirements toward Nokia’s suppliers:
■
Environmental Management System
Hardware suppliers for product materials and final assembly
suppliers are required to have a documented Environmental
Management System (EMS) ensuring the effective planning,
operation and control of environmental aspects. The
system shall satisfy the requirements of ISO14001 or other
internationally recognized standards. Suppliers that provide
materials that are embedded into Nokia products need to
be certified by a third party as compliant with ISO14001.
■
Raw Material Content Data Management
Supplier shall comply with material restrictions, set by
applicable law and Nokia, and continuously maintain records
of full raw material content data (materials, substances and
compounds) of products supplied to Nokia or of materials
used in implementing the services provided to Nokia. These
records, including any updates, must be provided to Nokia
in a format specified by Nokia.
■
Design for Environment requirements
Suppliers shall consider environmental aspects in all phases
of their product development, using, for example, specific
Design for Environment methods or checklists. Suppliers
must comply with Nokia product environmental
requirements e.g., Nokia Substance List. Choices made
during these product development phases must, whenever
possible, reduce or eliminate negative environmental
impacts. All reasonable attempts must be made to reduce
or eliminate hazardous constituents from the product,
to promote the efficient use of materials (i.e., to reduce
waste), to improve the energy efficiency of the product
and to promote recycling.
■
Recycled content
Suppliers shall track their recycled/scrap origin materials
contents and strive to reduce their use of virgin materials.
■
Waste management
Suppliers shall record information about waste
management (i.e., how much and where waste is reused,
recycled, energy recovered, sent to landfill) and provide
this information to Nokia on request.
Nokia also has environmental requirements and guidelines
for Nokia products that apply to all designs, products, parts,
modules, components and packaging materials. This document
lists the most significant global environmental regulations and
introduces Nokia’s environmental requirements.
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Actions
Products
Nokia has a Design for Environment program in place that
provides guidelines for developers regarding the balances
involved in the choice of materials when improving durability,
dismantling, reparability and recyclability as well as product
weight, supply risk and energy efficiency. In telecommunications
the availability of service is mission critical. Reliability, product
lifetime and serviceability are very much part of the technical
requirements for each product. During 2024, Nokia continued
its Design for Environment program, particularly taking into
consideration the evolution of product materials (including
recycled metals and plastics) and their availability, materials
efficiency improvements, and product portfolio roadmaps.
During 2024, Nokia has studied how to increase product take-
back volumes. It also further solidified its solutions portfolio to
help operators ensure a sustainable and cost-efficient network
evolution by maximizing the value of their aging, obsolete, or
excess equipment and to strengthen their circular economy
business approach. The goal is to add as much circularity into
the supply chain as possible via refurbished products. This is in
addition to typical repair services, which may also utilize some
of these circular solutions.
Nokia has a portfolio offering a set of modules that can be
customized and combined to fit specific customer needs
as follows:
■
Asset Recovery helping operators to eliminate surplus/
excess units resulting from network modernization or swap
■
Circular Products and Parts enabling customers to expand
their network using circular/refurbished products
■
Refurbishment Service enabling operators to extend the
lifecycle of their network and products
■
Recycling service helping operators manage e-waste and
reduce landfill according to international standards and
regulations
Engagement with suppliers
Nokia has various engagement programs with suppliers on
the subject of the environment, and specifically on waste and
recycled material contents. Its current due diligence involves
on-site audits with the suppliers. These include Environmental
Management System reviews and interactions as well as site
tours. Nokia’s supplier-related monitoring, assessment
and auditing activities also include EcoVadis assessments.
These are online assessments which include the evaluation
of environment-related policies, procedures and controls.
Nokia also has focused improvement programs with suppliers,
such as recycled material content to raise supplier awareness,
and work on continuous improvement for increasing recycled
origin aluminum, steel, copper and polymerics in Nokia
products. With final assembly suppliers, Nokia is also working
on increasing its waste circularity rate to 95%. The focus is
to divert waste that would end up in landfill or incineration
without energy recovery to waste that is reused, recycled or
incinerated with energy recovery.
Packaging
In the area of packaging, business groups continue actions to
increase the usage of recycled content in packaging materials
where possible without negatively affecting the structural
integrity and protection of the shipped products; at the same
time ensuring that the materials used are recyclable and
fostering circularity of the system. The business groups have
researched sustainably sourced materials that could be
leveraged to deploy (such as molded pulp and thermoformed
plastics with high recycled material content) and continue to
further eliminate materials with recyclability issues, such as
polystyrene or polyurethane, while minimizing the use of single
use plastics where possible. In the future, Nokia intends to
maximize the recyclability of its packaging materials for
optimized circularity.
Waste management
Tracking and reporting of Radio site installation waste has been
further studied and developed to set a foundation to improve
Radio site waste management. By better understanding
regional and country waste management, Nokia can drive
improvement by benchmarking the sites against the Nokia level
of 95% waste circularity target. While there are still data gaps,
the Network Infrastructure business group has increased
coverage of the site installation waste reporting.
Through advances in packaging design and recyclability, as well
as regional requirements and infrastructure along with existing
contract terms related to sustainable waste management, site
waste circularity rates are expected to continue to improve.
Targets and progress in targets
Scientific evidence confirms that implementing diverse
environmental targets such as improving resource efficiency,
increasing recycled content in products and packaging,
promoting circularity and minimizing waste helps to protect
and sustain healthy environment.
Currently, Nokia has three external targets to measure and
track its progress against the identified material impacts and
risks covering resource inflows and outflows.
Recycled content in products
Nokia has set a target to increase recycled content in sourced
mechanical materials:
Target in 2030:
90%
Cast aluminum used in mechanical parts
Target in 2030:
50%
Wrought aluminum, steel and copper alloys, as well as
polycarbonate plastics used in mechanical parts
These targets cover materials with the highest use but does
not cover all materials used in Nokia’s products.
In 2024, we reached recycled materials content levels of 38%
cast aluminum, 15% wrought aluminum, 5% stainless steel,
2% low alloy steel, 4% copper alloys and 6% polycarbonate
plastics. Nokia continues awareness raising and data collection
on recycled materials.
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Waste circularity
Nokia has set a target to increase waste circularity rate.
The purpose is to improve waste management practices by
maximizing waste utilization and minimizing disposal.
Target in 2030:
95%
Circularity rate including waste from Nokia’s offices, labs,
manufacturing, site installation, product takeback and final
assembly suppliers.
Annual waste circularity outcome for 2024 was 81%. Nokia has
recognized areas where high circularity rate has already been
achieved and also areas requiring further action. There are still
data gaps to be closed as described in the reporting principles.
Product packaging
Nokia has set new packaging targets which are measured from
the reporting year 2025 onwards (base year 2024).
Target in 2030:
Ensure all packaging is
100%
recyclable
Target in 2030:
Cardboard and plastic packaging materials
to contain at least
50%
recycled content
Target in 2030:
Plastic packaging to be limited to no more than
10%
by weight of total primary packaging
Progress against ESG targets in 2024
Target year
Base year
Base value(1)
Target
2024 results
Target status
E5: Resource use and circular economy
2030
2022
89%
Waste circularity:
95% circularity rate for waste from our
offices, labs, own manufacturing,
installation, product takeback and
supply chain final assembly factories by
2030.
Annual waste circularity outcome for
2024 was 81%.
On track
2030
2023
43% cast aluminum
10% wrought aluminum
7% low alloy steel
13% stainless steel
3% on copper alloys
Product recycled content:
Increase recycled content in mechanical
part source materials:
■Cast aluminum used in mechanical
parts to 90%
■Wrought aluminum, steel and copper
alloys, as well as polycarbonate
plastics used in mechanical parts
to 50%.
In 2024, we reached recycled
materials content levels of 38% cast
aluminum, 15% wrought aluminum,
5% stainless steel, 2% low alloy
steel, 4% copper alloys and 6%
polycarbonate plastics.
Not on track
(1)
Base values for the metrics are the reported values of the first year of reporting.
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Disclosure tables
Nokia continuing operations
As outlined in the section ‘Basis for preparation’ within ‘General Information’, metrics are
presented separately for Nokia continuing operations and discontinued operations comprising
Submarine Networks. Disclosure tables presented in this section include continuing operations
(Nokia Group excluding Submarine Networks) both for the reporting year 2024 and comparative
period 2023 unless otherwise indicated. Key metrics for the discontinued operation for the
reporting years 2024 and 2023 are disclosed separately below this section.
Resource inflows, materials used to manufacture products and services
Materials used during the reporting period
2024
2023
Overall total weight of products and technical and biological materials used
(metric tons)
60 560
Not reported
Recycled content in mechanical part source materials of products
Cast aluminum
38%
43%
Wrought aluminum
15%
10%
Stainless Steel
5%
13%
Low alloy Steel
2%
7%
Copper alloys
4%
3%
Polycarbonate plastics
6%
Not reported
Recycled content in product packaging
Recycled content in product packaging
32%
Not reported
Resource outflows, products and materials recyclability
Materials used during the reporting period
2024
2023
The rates of recyclable content in products
80 %
Not reported
The rates of recyclable content in products packaging
96 %
Not reported
Total waste from Nokia’s own operations
TOTAL WASTE (metric tons)
2024
2023
Total waste diverted from disposal
6 367
6 635
Total waste diverted from disposal due to preparation for reuse
82
120
Total waste diverted from disposal due to recycling
5 588
5 814
Total waste diverted from disposal due to other recovery operations
697
701
Total waste directed to disposal
935
1 000
Total waste directed to disposal by incineration
0
0
Total waste directed to disposal by landfilling
935
1 000
Total waste directed to disposal by other disposal operations
0
0
TOTAL WASTE
7 302
7 635
Hazardous waste
HAZARDOUS WASTE (metric tons)
2024
2023
A. Hazardous waste diverted from disposal
2 192
1 315
Hazardous waste diverted from disposal due to preparation for reuse
13
20
Hazardous waste diverted from disposal due to recycling
2 135
1 200
Hazardous waste diverted from disposal due to other recovery operations
44
95
B. Hazardous waste directed to disposal
6
100
Hazardous waste directed to disposal by incineration
0
0
Hazardous waste directed to disposal by landfilling
6
100
Hazardous waste directed to disposal by other disposal operations
0
0
(A+B) TOTAL HAZARDOUS WASTE
2 198
1 415
Non-hazardous waste
NON-HAZARDOUS WASTE (metric tons)
2024
2023
A. Non-hazardous waste diverted from disposal
4 175
5 320
Non-hazardous waste diverted from disposal due to preparation for reuse
69
100
Non-hazardous waste diverted from disposal due to recycling
3 453
4 614
Non-hazardous waste diverted from disposal due to other recovery
operations
653
606
B. Non-hazardous waste directed to disposal
929
900
Non-hazardous waste directed to disposal by incineration
0
0
Non-hazardous waste directed to disposal by landfilling
929
900
Non-hazardous waste directed to disposal by other disposal operations
0
0
(A+B) TOTAL NON-HAZARDOUS WASTE
5 104
6 220
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Non-recycled and utilized waste
NON-RECYCLED WASTE (metric tons)
2024
2023
Non-recycled waste in tonnes or kg
935
1 000
Percentage of non-recycled waste (%)
13%
13%
UTILIZED WASTE (%)
2024
2023
Waste utilization rate (%)
87%
87%
Electronic waste
WASTE BY TYPES (metric tons)
2024
2023
Electronic waste from facilities
2 024
1 200
Other hazardous waste
173
215
EQUIPMENT RETURNED FROM CUSTOMERS (number, metric tons)
2024
2023
Reuse (no. of items)
46 378
49 300
Total equipment returned from customers (metric tons)
Reuse
304
290
Recycle
682
2 610
Energy recovery
2
7
Landfill
0
6
Incineration without energy recovery
0
0
Total equipment returned from customers (metric tons)
988
2 913
Discontinued operations
The total waste from discontinued operations includes own facilities of Submarine Networks.
Total waste
TOTAL WASTE (metric tons)
2024
2023
Total waste diverted from disposal
2 475
5 485
Total waste diverted from disposal due to preparation for reuse
0
0
Total waste diverted from disposal due to recycling
2 293
4 086
Total waste diverted from disposal due to other recovery operations
182
1 399
Total waste directed to disposal
207
0
Total waste directed to disposal by incineration
0
0
Total waste directed to disposal by landfilling
207
0
Total waste directed to disposal by other disposal operations
0
0
TOTAL WASTE
2 682
5 485
Hazardous waste
HAZARDOUS WASTE (metric tons)
2024
2023
A. Hazardous waste diverted from disposal
0
105
Hazardous waste diverted from disposal due to preparation for reuse
0
0
Hazardous waste diverted from disposal due to recycling
0
0
Hazardous waste diverted from disposal due to other recovery operations
0
105
B. Hazardous waste directed to disposal
0
0
Hazardous waste directed to disposal by incineration
0
0
Hazardous waste directed to disposal by landfilling
0
0
Hazardous waste directed to disposal by other disposal operations
0
0
(A+B) TOTAL HAZARDOUS WASTE
0
105
Non-hazardous waste
NON-HAZARDOUS WASTE (metric tons)
2024
2023
A. Non-hazardous waste diverted from disposal
2 475
5 380
Non-hazardous waste diverted from disposal due to preparation for reuse
0
0
Non-hazardous waste diverted from disposal due to recycling
2 293
4 086
Non-hazardous waste diverted from disposal due to other recovery
operations
182
1 294
B. Non-hazardous waste directed to disposal
207
0
Non-hazardous waste directed to disposal by incineration
0
0
Non-hazardous waste directed to disposal by landfilling
207
0
Non-hazardous waste directed to disposal by other disposal operations
0
0
(A+B) TOTAL NON-HAZARDOUS WASTE
2 682
5 380
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Reporting principles for metrics
Nokia’s internal Environmental Data Handbook defines the key
data collection and reporting principles for this type of data.
The key reporting methodologies and principles are explained
in this section.
Resource inflows
Nokia’s resource inflows include:
■
Telecommunication products and components, as well as
third-party equipment which comprise of minerals, metals
and polymers
■
Secondary hardware, e.g., take-back equipment from
customers
■
Product packaging, including wood- and plastic-based
materials
Weight of products, materials and their packaging
The overall total weight of products, technical materials and
biological materials is based on global inbound delivery volumes
and weight of each product and related packaging as recorded
in Nokia’s systems. A product or material is considered as
inflow when delivered to Nokia, following the accounting
principles and Nokia Group reporting boundaries i.e., the point
in time marking the ‘goods received’. Only deliveries from
external parties are included. Intercompany transfers between
the distribution centers are excluded. Due to limitations in the
weight data availability for materials and semi-finished goods
delivered to Nokia’s own manufacturing facilities, technical
materials are reported as resource inflows once delivered to
Nokia inventories as finished goods.
Weight of product take-back has been included in the metric
which is calculated based on hardware units and weight
per unit.
As this is the first year of reporting and tracking this metric,
some uncertainties in the weight data accuracy exist. Nokia will
continue developing its reporting process and improving
system data quality.
Other resource inflows metrics
The ESRS E5 standard requires to disclose the percentage of
biological materials that is sustainably sourced (E5 para 31b)
and the weight in both absolute value of secondary reused or
recycled components, secondary intermediary products and
secondary materials used to manufacture products and
services (E5 para 31c). Nokia is sustainably sourcing biological
materials using the FSC-certified packaging materials, however
the share of the sustainably sourced biological materials
cannot be reliably estimated for the reporting year 2024. The
share of recycled content in mechanical part source materials is
presented for the selected materials with the highest use, see
below ‘Recycled content in mechanical part source materials’.
These metrics require value chain data from Nokia’s suppliers
which was not available in 2024. As no reasonable estimation
methods were considered to be available, Nokia does not
report the metrics, but is investigating and taking actions to
develop data availability.
Recycled content in mechanical part source materials
Reported data covers the mechanical parts that are used/
contained within our products. Any ancillaries, such as cables,
kits, fasteners, and attachments that are external to our
products, are out of scope.
Data is collected from Nokia’s largest mechanics suppliers,
who represent over 80% of relevant business spend of Mobile
Networks and Network Infrastructure business groups. Data is
reported once a year by suppliers for aluminum, steel and
copper. Recycled materials content share is reported per metal
for aluminum, steel, and copper and adjusted to the spend
coverage of the respective suppliers. Similarly recycled
polycarbonate plastics content is collected from suppliers.
Recycled content in product packaging
Recycled content in product packaging data is collected from
the largest suppliers covering the majority of Mobile Networks
business group and estimated for Nokia Group based on Mobile
Networks’ share of recycled content in product packaging.
Resource outflows
Nokia’s key products are telecommunication network products,
where the availability of service is mission critical.
Product durability
Circular principles such as reliability, product lifetime and
serviceability are historically inherent to technical design
requirements for each product. Redeploying products after
their initial use, as well as repairing and re-stocking as spares is
standard practice for field replaceable units. The description of
our key products comes out of Nokia’s own product design and
production process.
Regarding the expected durability of the products placed
on the market, there is no industry average of each product
group in the telecommunication industry. Nokia products are
designed to meet customer expectations in terms of durability,
when used under specified conditions, including maintenance
and repair.
Product repairability
Regarding the repairability of products, there is no established
rating system existing in Nokia. Virtually all Nokia products
can be restored to their intended functionality by replacing
field-replaceable parts or by subjecting the product (or its
replaceable components) to specialized repair procedures.
Recyclable content in products and their packaging
The rates of recyclable content in products and
their packaging has been calculated based on material
composition of key products and packaging. The overall
recyclability rate is presented separately for products and
packaging, as the average of the recyclable content of products
and packaging weighted by units delivered during the reporting
year and unit weight of those products and their packaging.
Recyclability of each material used in products and packaging
was assessed based on potential estimated recyclability rate of
each material separately. Additionally, recyclability rate of PWB
assemblies has been estimated based on the average metal
content. The actual recycling rates are not considered in
these estimates.
Steel
100 %
Stainless steel
100 %
Aluminum & alloys
100 %
Copper & alloys
100 %
Other metals
100 %
Polymerics
70 %
PWB assembles
22 %
Packaging paper-based
100 %
Packaging plastics-based
90 %
Packaging wood-based
100 %
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Waste
Total waste generated, own operations
Waste generated in own operations covers Nokia’s own and
leased offices, R&D and manufacturing facilities. Additionally,
waste from own operations includes scrapped materials and
related packaging from Nokia’s main distribution centers
(HUBs), Nokia product repair operations conducted by Nokia
and external repair partners, as well as hardware product
take-back.
Waste breakdown is presented by recovery operation or waste
treatment types. Waste diverted from disposal includes waste
that has either been reused, recycled, or the energy of which
has been utilized. The composting of biowaste is recorded
under “recycling”. Waste directed to disposal has either been
sent to a landfill, or incinerated without energy recovery.
The actual waste treatment is always done according to local
legal requirements.
Nokia also classifies waste by non-hazardous waste and
hazardous waste. The definitions for what is reported under
hazardous and non-hazardous waste have been set on a global
level to simplify corporate reporting. For example, all discarded
batteries and electric and electronic waste (WEEE) are reported
globally under “hazardous waste”, although only certain sub-
categories of WEEE are defined as “hazardous” in national
legislation applicable around the world. The following
categories are categorized as “hazardous”: batteries, lamps &
bulbs, solvents, adhesives, paints & liquids, solder and WEEE.
Hazardous waste also contains data from our Nokia product
repair operations. Hazardous waste requires special handling
procedures as prescribed, mandated, and/or regulated by the
country in which the waste is being generated and/or the
country to which it is being shipped for final disposition.
Data for waste consumption in Nokia’s facilities is typically
collected from facility-level responders, obtained from invoices
or metered data. For facilities with no data availability, usage of
data is estimated with data gap corrections or by employing
annual intensity factors based on kg/m2, as calculated from the
reporting sites, thereby accounting for 100% of Nokia facilities.
Subleased areas are not covered in the facility data.
Reported weight diverted from disposal or directed to
disposal from product take-back operations, Nokia’s main
distribution centers and product repair operation, is collected
from the recyclers.
Waste generated at our facilities is handled directly by vendors,
landlords of such facilities and local authorities. As described
in the General information, Basis for preparation -section,
processes and internal controls are implemented at various
levels of the organization with the view of minimizing
uncertainties and maintain transparency. However, there is
still some degree of uncertainty and some inherent limitations
in collecting accurate information, especially information
related to waste. Where specific weights are not available,
we employ estimation and extrapolation methods to ensure
maximum coverage.
Currently, data for repackaging materials generated in the
distribution centers is not collected, but Nokia is assessing
and developing the data collection methodology and processes
to further improve the actual data coverage. In order to
cover known and unknown potential data gaps, as well as
uncertainties in data quality, Nokia estimated a 5% potential
data gap for Nokia continuing operations and included +5%
group level adjustment addition to the waste data collected
and estimated on the site-level. The estimated waste amount
reflects the same proportion of hazardous and non-hazardous
waste as well as a proportion of waste diverted from, and
directed to disposal as the total waste prior to the adjustment.
Waste circularity rate (target)
The circularity rate target and metric include waste from
Nokia’s offices, labs, manufacturing, site installation, product
take-back and final assembly suppliers waste allocated to
Nokia. The circularity rate excludes Submarine Networks.
Equation for calculating circularity: Circularity = Utilization/
All waste generated (utilization + waste disposal) where:
■
Waste utilization (circularity) covers are Reuse, Recycle and
Energy and material recovery; and
■
Waste disposal covers Landfill and Incineration without
energy recovery.
In 2024, Mobile Networks business group’s Radio site
installation waste was studied to set a foundation to measure
and improve Radio site waste. All Radio site installation
quantities per region and country that are exclusively managed
by Nokia are assimilated and benchmarked against model sites.
Based on waste generated for each model site, Nokia calculates
site waste per region.
During 2024, the data coverage of the metric was improved
by developing methodology and partially including Network
Infrastructure business group’s site installation waste. This
data is captured in collaboration with installation contractors
as part of normal project documentation. The waste data is
entered into a tool that also captures the waste treatment
methods based on familiarity with local regulations and
practices per material type. In 2024, site installation waste still
excluded Network Infrastructure business group’s Deployment
Services installations which globally cover sites and orders of
magnitude larger than the sites currently reported by the
Network Infrastructure business group. The methodology and
process of data collection are being developed with a plan to
improve data coverage for future years.
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Disclosure under the European
Union Taxonomy Regulation
The EU Taxonomy Regulation was introduced to establish a
common classification system for environmentally sustainable
economic activities on the basis of defined objectives and
technical screening criteria.
By clearly defining which activities can be considered
sustainable within a certain sector, the EU Taxonomy seeks to
incentivize and encourage businesses to launch new activities
or to extend or upgrade existing ones so that they meet
certain objectives of the European Green Deal. The
environmental objectives listed by the regulation are:
1. Climate change mitigation
2. Climate change adaptation
3. Sustainable use and protection of water and marine resources
4. The transition to a circular economy
5. Pollution prevention and control
6. Protection and restoration of biodiversity and ecosystems
As a company subject to the EU Taxonomy Regulation,
including the related delegated acts and their annexes
as amended, Nokia discloses the amount and share of its
turnover (net sales) derived from, and capital expenditure and
operating expenditure associated with, economic activities
that are EU taxonomy-eligible or taxonomy-aligned.
Disclosure requirements for the financial year 2024
For the financial year 2024, Nokia reports financial indicators
with respect to eligibility and alignment for the environmental
objectives 1 through 6 listed above.
Nokia reports the share of its activities that are eligible and
whether they are aligned with the EU Taxonomy. ‘Eligible,’ in
this context, refers to economic activities that are recognized
by the EU Taxonomy. Also, to claim ‘alignment’ with the current
version of the EU Taxonomy, an economic activity needs to
demonstrably comply with all three following requirements:
a) It contributes substantially to at least one of the six
environmental objectives.
b) It does not significantly harm any of the other
environmental objectives.
c) It is carried out in compliance with certain social and
governance minimum safeguards.
Nokia’s business activities and the EU Taxonomy
The EU Taxonomy and its technical screening criteria have been
evolving since they were first released during 2021. Not all
sectors and economic activities have been recognized yet in
the taxonomy and its screening criteria. The telecom sector is
one of the sectors within which Nokia primarily operates and
has not been specifically recognized in the EU Taxonomy
sectors or economic activities. However, Nokia’s economic
activities are currently relevant to activities within objective 1
(climate change mitigation), objective 4 (the transition to a
circular economy) and objective 5 (pollution prevention and
control) of the EU Taxonomy regulation.
Nokia has a cross-organizational working group consisting of its
business groups, technology, finance, sustainability and legal
experts who work in assessing both eligibility and alignment
of Nokia’s economic activities. Guidance and review of EU
Taxonomy reporting is provided by the established ESG
Financial Reporting Steering Committee.
Nokia has conducted an analysis mapping its activities to the
EU Taxonomy. From the activities included in the EU Taxonomy
regulation, Nokia has identified the following taxonomy-eligible
activities corresponding to turnover (net sales), capital
expenditure or R&D operating expenditure, as relevant
for Nokia:
Objective 1: Climate change mitigation
Economic activity
Description of Nokia's economic activities
6.5. Transport by
motorbikes, passenger
cars and light
commercial vehicles
Purchase and leasing of electric and hybrid
vehicles. Refer to the "Individually eligible
capital expenditure (CapEx) and operating
expenditure (OpEx)" section below for
further information.
7.3. Installation,
maintenance and repair
of energy efficiency
equipment
Individual renovation measures consisting
of installation, maintenance or repair of
energy efficiency equipment.
8.2. Data-driven
solutions for GHG
emissions reductions
Development or use of ICT solutions that
are aimed at collecting, transmitting and
storing data and at its modeling and use
where those activities are predominantly
aimed at the provision of data and
analytics enabling GHG emission
reductions. Under this activity, Nokia only
consider data-driven solutions
‘predominantly’ designed or developed for
GHG emission reduction which are
designed and sold separately.
9.1. Close to market
research, development
and innovation
Research, applied research and
experimental development of solutions,
processes, technologies, business models
and other products dedicated to the
reduction, avoidance or removal of GHG
emissions (RD&I) for which the ability to
reduce, remove or avoid GHG emissions in
the target economic activities has at least
been demonstrated in a relevant
environment, corresponding to at least
Technology Readiness Level 6.
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Objective 4: The transition to a circular economy
Economic activity
Description of Nokia's economic activities
1.2. Manufacture of
electrical and
electronic equipment
Manufacture (and sale), including
subcontracted manufacture, of electrical and
electronic equipment. This covers a major
part of Nokia’s hardware portfolio and
embedded software.
4.1. Provision of IT/OT
data-driven solutions
Manufacture (and sale), development,
installation, deployment, maintenance,
repair or professional services, including
technical consulting for design or monitoring
of software and information technology (IT)
or operational technology (OT) systems built
for the purpose of remote monitoring and
predictive maintenance, design and
engineering software supporting the
eco-design of products, equipment, and
infrastructure and lifecycle performance
management software.
5.1. Repair,
refurbishment and
remanufacturing
Activities related to repair, refurbishment
and remanufacturing of telecom equipment
that has previously been used for its
intended purpose.
5.2. Sale of spare
parts
Sale of spare parts disclosed in this activity
to the extent sold separately as spare parts
and reported separately from the scope of
activities covered under ‘1.2. Manufacture of
electrical and electronic equipment.’
5.4. Sale of second-
hand goods
Sale of second-hand goods that have
previously been used for their intended
purpose, possibly after repair, refurbishment
or remanufacturing, and to the extent
separately reported in Nokia’s reporting
system from the scope of activities covered
under ‘1.2. Manufacture of electrical and
electronic equipment’.
Objective 5: Pollution prevention and control
Economic activity
Description of Nokia's economic activities
2.4. Remediation of
contaminated sites
and area
Expenditure incurred in decontamination or
remediation of contaminated sites and area
Based on Nokia’s eligibility assessment, activity ‘1.2. Manufacture
of electrical and electronic equipment’ covers the majority of
Nokia’s economic activities since most of its hardware portfolio
and embedded software are eligible within the description
of the said activity. This activity includes own as well as
subcontracted manufacturing as per the EU Taxonomy regulation.
Based on the above assessment of Nokia’s business portfolio
for 2024:
■
Taxonomy-eligible turnover accounted for 57% (2023:
61%) of total turnover. This translates to EUR 11 010
million (2023: EUR 13 506 million) in taxonomy-eligible
turnover.
■
Taxonomy-eligible capital expenditure accounted for
38% (2023: 52%) of total capital expenditure. This
translates to EUR 237 million (2023: EUR 502 million) in
taxonomy-eligible capital expenditure.
■
Taxonomy-eligible operating expenditure accounted for
66% (2023: 66%) of total operating expenditure. This
translates to EUR 2 662 million (2023: EUR 2 525 million)
in taxonomy-eligible operating expenditure.
Currently the telecommunications sector is not yet specifically
addressed as such in the EU Taxonomy and, therefore, the
positive impact (handprint) of connectivity and digitalization
in relation to sustainability is not recognized here. Nokia’s
connectivity and digitalization solutions enable efficiencies
in and the sustainable transformation of other industries, with
an important role as an enabler of decarbonization. Nokia
resolutely supports the ambitious environmental goals set by
the EU and continues to advocate for future work on the EU
Taxonomy to recognize the positive impact that connectivity
and digitalization, including technologies such as 5G and other
advanced communications technologies, may have on the six
environmental objectives of the EU Taxonomy.
Individually eligible capital expenditure (CapEx)
and operating expenditure (OpEx)
Nokia has considered CapEx and OpEx arising from certain
individual investments that enable related activities to
either improve energy efficiency, become low-carbon,
or lead to greenhouse gas reductions, and that meet the
description of the corresponding economic activity in the
EU Taxonomy regulation.
Nokia identified individually eligible CapEx under activities
‘6.5. Transport by motorbikes, passenger cars and light
commercial vehicles’ and ‘7.3. Installation, maintenance and
repair of energy efficiency equipment’ (within objective 1).
CapEx is reported as eligible under these activities to the
extent that the identified assets enable the activities to
become low-carbon or to lead to greenhouse gas reductions.
Examples of such CapEx include equipments for energy
efficiency of buildings on company premises e.g. the
replacement of automation systems and electric as well as
electric and hybrid vehicle leases.
Nokia has identified individually eligible OpEx in activities ‘9.1.
Close to market research, development and innovation’ (within
objective 1) and ‘2.4. Remediation of contaminated sites and
area’ (within objective 5).
Refer to the section “Nokia’s business activities and the EU
Taxonomy” for a description of these activities.
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Alignment assessment
Alignment assessment has been conducted for all the
taxonomy-eligible activities under environmental objectives 1
through 6 as per the EU Taxonomy regulations. This includes
assessment of ‘Substantial contribution criteria’ followed by
assessment of ‘Does Not Significantly Harm (DNSH) criteria’ for
activities which comply with substantial contribution criteria.
The wording and terminology used in the EU Taxonomy are still
subject to some interpretation uncertainty, which could lead
to changes in the reporting as and when clarified by the EU.
Ultimately, there is a risk that the assessment presented as
taxonomy-aligned would need to be concluded differently. In
addition, the application of the EU Taxonomy to sites outside
the EU leads to particular challenges due to the existence of
local, possibly diverging, legislation.
Where uncertainty exists with regard to how to interpret or
apply any criteria in an economic activity, the relevant activity
is assessed as ‘not Taxonomy-aligned activities’. In such cases,
Nokia continues to monitor future developments and to
update its approach as appropriate.
A. Substantial contribution criteria
As per the alignment assessment conducted for taxonomy-
eligible activities, alignment criteria are met for the economic
activity ‘5.1. Repair, refurbishment and remanufacturing’
(within objective 4) and have been reported as’ Taxonomy-
aligned’. All other activities are reported as ‘not Taxonomy-
aligned activities’ in the disclosure tables given. The alignment
assessment of key taxonomy-eligible activities carried out by
Nokia is described below:
Objective 1:
6.5. Transport by motorbikes, passenger cars and light
commercial vehicles: The substantial contribution criteria for
this economic activity with respect to electric and hybrid
vehicle leases are met for the specified thresholds and
conditions.
DNSH criteria include conditions related to circularity, waste
management, emission type approvals and external rolling
noise requirements. Most of these criteria are beyond Nokia’s
control or access and hence Nokia considers this economic
activity as ‘not Taxonomy-aligned activities’.
Objective 4:
1.2. Manufacture of electrical and electronic equipment: This
economic activity’s substantial contribution criteria requires
that those manufacturing electrical and electronic equipments
need to comply with all the criteria/ conditions included within
the following topics: Design for long lifetime, Design for repair
and guarantee, Design for reuse and remanufacturing, Design
for dismantling, Design for recallability, Proactive substitution
of hazardous substances, Information to customers and
Producer responsibility.
While Nokia complies with many of the sub-criteria stated
therein, it is still not able to meet few required conditions
mentioned therein due to lack of insufficient data. Hence,
alignment cannot be reached for this economic activity and
is classified as ‘not Taxonomy-aligned activities’.
4.1. Provision of IT/OT data-driven solutions: This economic
activity includes manufacture (and sale), development,
installation, deployment, maintenance, repair or professional
services, including technical consulting for design or monitoring
of IT/OT data-driven solutions that provide the capabilities
listed in the EU Taxonomy regulation for software specified
therein.
Most of the criteria included in the said economic activity are
very specific and require judgements. At this moment, Nokia
considers these criteria as not met and hence this economic
activity is classified as ‘not Taxonomy-aligned activities’.
5.1. Repair, refurbishment and remanufacturing: This activity
contributes to extending the lifetime of products by repairing,
refurbishing or remanufacturing products that have already
been used for their intended purpose by a customer. The
criteria within this activity also requires implementation of a
waste management plan and it being publicly available whereby
product’s materials, particularly critical raw materials, and
components are reused, recycled or disposed of in accordance
with applicable Union and national legislation.
Nokia’s key products are telecommunication network products,
where the availability of service is mission critical. Circular
principles such as reliability, product lifetime and serviceability
are historically inherent to technical design requirements for
each product. Redeploying products after their initial use, as
well as repairing and re-stocking as spares is standard practice
for field replaceable units.
Nokia’s business groups have repair facilities. The aim of
business groups is to add as much circularity into the supply
chain as possible via repair and refurbished products. For
further information, refer section ‘Waste management’ within
Resource use and circular economy (ESRS E5).
Nokia’s business groups have conducted a comprehensive
assessment of above criteria within 5.1. economic activity
and involved subject matter expert from repairing facilities
for above conclusion. Basis information provided above and
assessment conducted, it is concluded that this economic
activity meets the ‘Substantial contribution criteria’ as per the
EU Taxonomy regulation. Assessment of DNSH criteria for this
economic activity is included in a subsequent section.
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Objective 5:
2.4. Remediation of contaminated sites and area: Substantial
contribution criteria for this activity require that the relevant
contaminants are removed, controlled, contained or diminished
using mechanical, chemical, biological or other methods so that
the contaminated area no longer poses any significant risk of
adversely affecting human health and the environment. The
specific remediation and monitoring plan to be approved by
the competent authority as per national legal requirements.
Complete information to assess all the criteria is not available
with Nokia. This is due to the fact that most of these sites
are outside the EU, which create a challenge to translate EU
standards or regulations to a non-EU context. In the absence of
such information, this economic activity is classified as ‘not
Taxonomy-aligned activities’.
B. Does Not Significantly Harm (DNSH)
The DNSH criteria assessment was conducted for the economic
activity ‘5.1. Repair, refurbishment and
remanufacturing’ (within objective 4) basis substantial
contribution criteria assessment carried out as above.
Nokia’s assessment confirmed that it met DNSH criteria for the
said economic activity. Below, Nokia sets out its interpretation
and describes the analysis it has used to examine whether
there was any significant harm to the other environmental
objectives:
i. Climate change mitigation
As per EU Taxonomy regulations, where the economic activity
involves on-site generation of heat/cool or co-generation
including power, the direct greenhouse gas (GHG) emissions
of the activity should be lower than the prescribed limits.
An evaluation has been conducted at the respective repairing
facility and it had been concluded that the direct GHG
emissions involving on-site generation of heat, cooling,
or power are less than the prescribed limits.
ii. Climate change adaptation
There are general criteria specified within the EU taxonomy
regulation for DNSH to climate change adaptation. These
include performing a robust climate risk and vulnerability
assessment, including implementing adaptation solutions,
which minimizes the impact of material physical climate risks
to the economic activity.
Nokia’s climate-based DNSH assessment is based on the
Shared Socioeconomic Pathway (SSP3-7.0) scenario for
physical risks assessment, being the current likely worst-case
scenario based on Intergovernmental Panel on Climate Change
(IPCC) Sixth Assessment Report considering the climate actions
already taken to limit global warming. The assessment is
described in the section ‘Climate change (E1)’.
iii. Sustainable use and protection of water and marine
resources
Nokia evaluated its economic activities with respect to the
Generic Criteria for DNSH to sustainable use and protection of
water and marine resources looking at the three following
criteria: preserving water quality, avoiding water stress, and an
environmental compatibility assessment (Environmental Impact
Assessment or comparable process).
Nokia based its analysis primarily on ISO 14001 certificates,
information from site approvals and other external data
sources related to sites with a high-risk exposure.
iv. Pollution prevention and control
The Generic Criteria for DNSH to Pollution prevention and
control regarding use and presence of chemicals specify that
the economic activity should not lead to the manufacture,
placing on the market or use of certain specified substances.
The repairing activity should further comply with the relevant
rules and regulations on the restriction of the use of hazardous
substances. Nokia assessed thats its operating standards are
aligned with the criteria mentioned above and minimize the use
and presence of specified chemicals and use of hazardous
substances.
Based on the above assessment on Taxonomy-alignment for
2024:
■
Taxonomy-aligned turnover accounted for 3% (2023: 0%)
of total turnover. This translates to EUR 552 million (2023:
EUR 0 million) as ‘Taxonomy-aligned’ turnover.
■
Taxonomy-aligned capital expenditure accounted for —%
(2023: 0%) of total capital expenditure. This translates to
EUR 1 million (2023: EUR 0 million) as ‘Taxonomy-aligned’
capital expenditure.
■
Taxonomy-aligned operating expenditure accounted for
—% (2023: 0%) of total operating expenditure. This
translates to EUR 1 million (2023: EUR 0 million) as
‘Taxonomy-aligned’ operating expenditure.
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Minimum Safeguards
The minimum safeguards consist of the OECD Guidelines for Multinational Enterprises (OECD Guidelines for MNE), the United
Nations Guiding Principles on Business and Human Rights (UNGP), the Fundamental Conventions of the International Labour
Organization (ILO) and the International Bill of Human Rights. Nokia applies these minimum safeguards throughout its business
activities, processes and policies to ensure compliance and a proactive and constructive approach to risk identification and
management in the following areas.
The above assessments confirm that we meet the
requirements of the minimum safeguards in the financial year.
The above assessments confirm that Nokia meets the requirements of the minimum safeguards in the financial year.
Continuing and discontinued operations
As outlined in the section ‘Basis for preparation’ within ‘General information,’ continuing operations KPI related to Turnover,
CapEx and OpEx are disclosed within 2024 EU Taxonomy disclosure tables. Impact of restatement is not material for 2023 and
as such 2023 numbers have not been restated.
Discontinued operations represent Submarine Networks. The discontinued operations KPI related to Turnover, CapEx and OpEx
are excluded from below disclosure table to align with financial statements of Nokia.
Changes in disclosures compared with the previous financial year
The taxonomy-eligibility and alignment of Nokia’s business portfolio was reviewed with respect to the economic activities
released up till now with no significant change identified to Nokia’s assessment compared to the previous financial year other
than the above described disclosures related to discontinued operations.
Nokia will continue to monitor further regulatory developments in the EU Taxonomy regulation and their applicability to its
business portfolio, which may result in further changes to disclosure in subsequent years.
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Area
Human rights
Corruption
Taxation
Fair competition
Measures and
evidence
1. Nokia has established an
adequate human rights due
diligence process as outlined in
the UNGP and OECD Guidelines
for MNE.
2. No breaches of labor law or
human rights have been found at
Nokia. Nokia engages regularly
with stakeholders and to the best
of Nokia’s knowledge, no cases or
allegations were brought against
Nokia by an OECD National
Contact Point or by the Business
& Human Right Centre within the
last two years.
1. Nokia has anti-corruption
processes in place.
2. Nokia and its senior
management, including the
senior management of
subsidiaries, have not finally
been convicted in court on
corruption.
1. Nokia treats tax
governance and compliance
as important elements of
oversight, and there are
adequate tax risk
management strategies and
process in place.
2. Nokia and its subsidiaries
have not been finally found
violating of tax laws.
1. Nokia promotes employee
awareness of the
importance of compliance
with all applicable
competition laws and
regulations.
2. Nokia and its senior
management, including the
senior management of its
subsidiaries, has not been
finally convicted of violating
competition laws.
Accounting policy for the taxonomy-related financial KPIs: Continuing Operations
Nokia’s taxonomy-eligible and taxonomy-aligned turnover (net sales), capital expenditure and operating expenditure for 2024 are shown in the following tables
Proportion of turnover (net sales) from products or services associated with Taxonomy-aligned economic activities — disclosure covering year 2024
Substantial contribution criteria
DNSH criteria ('Does Not Significantly Harm')
Economic activities
Code
Turnover
Proportion
of Turnover,
2024
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Water (WTR)
Pollution (PPC)
Circular economy
(CE)
Biodiversity (BIO)
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Water (WTR)
Pollution (PPC)
Circular economy
(CE)
Biodiversity (BIO)
Minimum
safeguards
Taxonomy-
aligned (A.1)
or eligible
(A.2)
proportion
of turnover,
2023
Category
'enabling
activity'
Category
'transition
al activity'
EURm
%
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
5.1. Repair, refurbishment and remanufacturing
CE 5.1
552
3%
N
N
N
N
Y
N
Y
Y
Y
Y
Y
Y
Y
0 %
E
Turnover of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
552
3%
0 %
0 %
0 %
0 %
3 %
0 %
—
—
—
—
—
—
—
0 %
Of which Enabling
552
3%
0 %
0 %
0 %
0 %
3 %
0 %
—
—
—
—
—
—
—
0 %
E
Of which Transitional
—
0%
0 %
—
—
—
—
—
—
—
—
—
—
—
—
0 %
T
A.2. Taxonomy-Eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
EL; N/
EL
EL; N/
EL
EL; N/
EL
EL; N/
EL
EL; N/
EL
EL; N/
EL
8.2. Data-driven solutions for GHG emissions reductions
CCM 8.2
1
0%
EL N/EL N/EL
N/EL
N/EL
N/EL
—
—
—
—
—
—
—
0 %
—
—
1.2. Manufacture of electrical and electronic equipment
CE 1.2
10 076
52% N/EL N/EL N/EL
N/EL
EL
N/EL
—
—
—
—
—
—
—
58 %
—
—
4.1. Provision of IT/OT data-driven solutions
CE 4.1
316
2% N/EL N/EL N/EL
N/EL
EL
N/EL
—
—
—
—
—
—
—
1 %
—
—
5.1. Repair, refurbishment and remanufacturing
CE 5.1
—
0% N/EL N/EL N/EL
N/EL
EL
N/EL
—
—
—
—
—
—
—
2 %
—
—
5.2. Sale of spare parts
CE 5.2
47
0% N/EL N/EL N/EL
N/EL
EL
N/EL
—
—
—
—
—
—
—
0 %
—
—
5.4. Sale of second-hand goods
CE 5.4
18
0% N/EL N/EL N/EL
N/EL
EL
N/EL
—
—
—
—
—
—
—
0 %
—
—
Turnover of Taxonomy-Eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
10 458
54%
0 %
0 %
0 %
0 %
54 %
0 %
—
—
—
—
—
—
—
61 %
—
—
A. Turnover of Taxonomy-eligible activities (A.1+A.2)
11 010
57%
0 %
0 %
0 %
0 %
57 %
0 %
—
—
—
—
—
—
—
61 %
—
—
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities (B)
8 210
43%
Total (A+B)
19 220
100%
Y - Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N - No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective; EL - Taxonomy eligible
activity for the relevant objective; N/EL – not eligible, Taxonomy non-eligible activity for the relevant environmental objective
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Proportion of capital expenditure (CapEx) from products or services associated with Taxonomy-aligned economic activities - disclosure covering year 2024
Substantial contribution criteria
DNSH criteria ('Does Not Significantly Harm')
Economic activities
Code
CapEx
Proportion
of CapEx,
2024
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Water (WTR)
Pollution (PPC)
Circular economy
(CE)
Biodiversity (BIO)
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Water (WTR)
Pollution (PPC)
Circular economy
(CE)
Biodiversity (BIO)
Minimum
safeguards
Taxonomy-
aligned (A.1)
or eligible
(A.2)
proportion
of CapEx,
2023
Category
'enabling
activity'
Category
'transition
al activity'
EURm
0
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
5.1. Repair, refurbishment and remanufacturing
CE 5.1
1
0%
N
N
N
N
Y
N
Y
Y
Y
Y
Y
Y
Y
0 %
E
CapEx of environmentally sustainable activities (Taxonomy-
aligned) (A.1)
1
0%
0 %
0 %
0 %
0 %
0 %
0 %
—
—
—
—
—
—
—
0 %
Of which Enabling
1
0%
0 %
0 %
0 %
0 %
0 %
0 %
—
—
—
—
—
—
—
0 %
E
Of which Transitional
—
0%
0 %
—
—
—
—
—
—
—
—
—
—
—
—
0 %
T
A.2. Taxonomy-Eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
EL; N/
EL
EL; N/
EL
EL; N/
EL
EL; N/
EL
EL; N/
EL
EL; N/
EL
6.5. Transport by motorbikes, passenger cars and light commercial
vehicles
CCM 6.5
33
5%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
—
—
—
—
—
—
—
4 %
—
—
7.3. Installation, maintenance and repair of energy efficiency
equipment
CCM 7.3
1
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
—
—
—
—
—
—
—
0 %
—
—
1.2. Manufacture of electrical and electronic equipment
CE 1.2
199
32%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
—
—
—
—
—
—
—
47 %
—
—
4.1. Provision of IT/OT data-driven solutions
CE 4.1
3
1%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
—
—
—
—
—
—
—
0 %
—
—
5.1. Repair, refurbishment and remanufacturing
CE 5.1
—
0%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
—
—
—
—
—
—
—
1 %
—
—
CapEx of Taxonomy-Eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
236
38%
5 %
0 %
0 %
0 %
33 %
0 %
—
—
—
—
—
—
—
52 %
—
—
A. CapEx of Taxonomy-eligible activities (A.1+A.2)
237
38%
5 %
0 %
0 %
0 %
33 %
0 %
—
—
—
—
—
—
—
52 %
—
—
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities (B)
391
62%
Total (A+B)
628
100%
Y - Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N - No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective; EL - Taxonomy eligible
activity for the relevant objective; N/EL – not eligible, Taxonomy non-eligible activity for the relevant environmental objective
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Proportion of operating expenditure (OpEx) from products or services associated with Taxonomy-aligned economic activities - disclosure covering year 2024
Substantial contribution criteria
DNSH criteria ('Does Not Significantly Harm')
Economic activities
Code
OpEx
Proportion
of OpEx,
2024
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Water (WTR)
Pollution (PPC)
Circular economy
(CE)
Biodiversity (BIO)
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Water (WTR)
Pollution (PPC)
Circular economy
(CE)
Biodiversity (BIO)
Minimum
safeguards
Taxonomy-
aligned (A.1)
or eligible
(A.2)
proportion
of OpEx,
2023
Category
'enabling
activity'
Category
'transition
al activity'
EURm
%
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
5.1. Repair, refurbishment and remanufacturing
CE 5.1
1
0%
N
N
N
N
Y
N
Y
Y
Y
Y
Y
Y
Y
0 %
E
OpEx of environmentally sustainable activities (Taxonomy-
aligned) (A.1)
1
0%
0 %
0 %
0 %
0 %
0 %
0 %
—
—
—
—
—
—
—
0 %
Of which Enabling
1
0%
0 %
0 %
0 %
0 %
0 %
0 %
—
—
—
—
—
—
—
0 %
E
Of which Transitional
—
0%
0 %
—
—
—
—
—
—
—
—
—
—
—
—
0 %
T
A.2. Taxonomy-Eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
EL; N/
EL
EL; N/
EL
EL; N/
EL
EL; N/
EL
EL; N/
EL
EL; N/
EL
9.1. Close to market research, development and innovation
CCM 9.1
9
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
—
—
—
—
—
—
—
0 %
—
—
1.2. Manufacture of electrical and electronic equipment
CE 1.2
2 519
63%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
—
—
—
—
—
—
—
63 %
—
—
4.1. Provision of IT/OT data-driven solutions
CE 4.1
126
3%
N/EL
N/EL
N/EL
N/EL
EL
N/EL
—
—
—
—
—
—
—
3 %
—
—
2.4. Remediation of contaminated sites and area
PPC 2.4
7
0%
N/EL
N/EL
N/EL
EL
N/EL
N/EL
—
—
—
—
—
—
—
0 %
—
—
OpEx of Taxonomy-Eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
2 661
66%
0 %
0 %
0 %
0 %
66 %
0 %
—
—
—
—
—
—
—
66 %
—
—
A. OpEx of Taxonomy-eligible activities (A.1+A.2)
2 662
66%
0 %
0 %
0 %
0 %
66 %
0 %
—
—
—
—
—
—
—
66 %
—
—
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities (B)
1 369
34%
Total (A+B)
4 031
100%
Y - Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N - No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective; EL - Taxonomy eligible
activity for the relevant objective; N/EL – not eligible, Taxonomy non-eligible activity for the relevant environmental objective
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Taxonomy-related reporting obligations include a description
of an ‘accounting policy,’ including calculation principles for
the numerator and the denominator. This section explains
how turnover (net sales), capital expenditure and operating
expenditure were determined and allocated to the numerator;
and the basis on which the turnover (net sales), capital
expenditure and operating expenditure were calculated. Double
counting has been avoided in the allocation in the numerator of
turnover, capital expenditure and operating expenditure across
economic activities.
Turnover (net sales)
Taxonomy-eligible turnover (net sales) in the numerator
includes the aggregated amount of turnover (net sales) from
products and services associated with Nokia’s taxonomy-
eligible economic activities. The denominator is the total
turnover (net sales) of Nokia as presented in the consolidated
income statement.
Capital expenditure
Taxonomy-eligible CapEx includes CapEX associated with
turnover (net sales) generating taxonomy-eligible economic
activities as well as CapEx from activities that reduce GHG
emissions but are not directly generating turnover (net sales).
The denominator is the total amount of additions to intangible
assets, property, plant and equipment, and right-of-use assets
during the financial year as presented in the consolidated
financial statements. Additions are considered before
depreciation and amortization for the relevant financial year.
Total additions are presented in the notes to the consolidated
financial statements in note 4.1. Goodwill and intangible assets;
note 4.2. Property, plant and equipment; and note 4.3. Leases.
Operating expenditure
In assessing its taxonomy-eligible operating expenses, Nokia
includes in the numerator the direct research and development
expenses related to the products and services associated
with its taxonomy-eligible economic activities, excluding
depreciation, amortization and impairment costs.
The denominator consists of research and development
expenses as presented in the consolidated income statement,
excluding depreciation, amortization and impairment costs.
The definition of operating expenses in the EU Taxonomy also
includes building renovation measures, short-term leases,
maintenance and repair, and any other direct expenditures relating
to the servicing of assets of property, plant and equipment.
As these expenses cannot be measured reliably, they are
excluded from reported operating expenses unless the
expenses are already included in the research and
development expenses.
Standard templates for the disclosure referred to in Article
8(6) and (7) of the delegated regulation (EU) 2021/2178
S. No.
Nuclear and fossil gas related activities
Nokia’s
assessment
(YES/NO)
Nuclear energy related activities
1
The undertaking carries out, funds or has
exposures to research, development,
demonstration and deployment of innovative
electricity generation facilities that produce
energy from nuclear processes with minimal
waste from the fuel cycle.
NO
2
The undertaking carries out, funds or has
exposures to construction and safe operation of
new nuclear installations to produce electricity or
process heat, including for the purposes of
district heating or industrial processes such as
hydrogen production, as well as their safety
upgrades, using best available technologies.
NO
3
The undertaking carries out, funds or has
exposures to safe operation of existing nuclear
installations that produce electricity or process
heat, including for the purposes of district
heating or industrial processes such as hydrogen
production from nuclear energy, as well as their
safety upgrades.
NO
Fossil gas related activities
4
The undertaking carries out, funds or has
exposures to construction or operation of
electricity generation facilities that produce
electricity using fossil gaseous fuels.
NO
5
The undertaking carries out, funds or has
exposures to construction, refurbishment, and
operation of combined heat/cool and power
generation facilities using fossil gaseous fuels.
NO
6
The undertaking carries out, funds or has
exposures to construction, refurbishment and
operation of heat generation facilities that
produce heat/cool using fossil gaseous fuels.
NO
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Social
information
Own workforce (ESRS S1)
146
Workers in the value chain (ESRS S2)
155
Affected communities (ESRS S3)
162
Consumers and end users (ESRS S4)
166
Own workforce (ESRS S1)
Material impacts, risks and opportunities related to Own Workforce
The materiality assessment resulted that working conditions, equal treatment and opportunities for all and training and skills
development of own workforce are material sub-topics for Nokia. The assessment covered own workforce including both
employees and non-employees. In the following table, the material impacts, risks and opportunities as well as how we manage
those impacts, risks and opportunities are described.
Working
conditions:
Secure
employment
Impact (positive): Nokia’s innovative
approach to staff development and
talent attraction has enabled it to
act resiliently in the markets and
renew itself in ways that positively
impacts own workforce.
Risk: Inability to attract, develop
and retain a future-fit workforce
with right skill set and in the right
locations during business
transformation
Nokia is investing in measures that target the development of future-fit talent at a
company and business group level, focusing on critical skills, stretch assignments and
exposure to different parts of the business through internal mobility initiatives.
In instances when unavoidable business transformation negatively impacts own
workforce, consequences are mitigated through measures such as reskilling,
redeployment support and severance packages.
Working
conditions:
Working time
Impact (positive): Nokia has
implemented and is maintaining
programs and policies regarding
flexible working arrangements
Nokia has a Flexible Working Standard Operating Procedure (SOP) in place which applies
to all employees of the Nokia Group. Globally, Nokia supports employees’ work-life
balance with flexible working arrangements that allow remote/home-based working,
provided the nature of their job role is such that they are not required to be on a
particular site to be able to perform their duties. Flexible working enables employees to
balance their work and family obligations in a way that meets their individual needs
Nokia does not permit our people to work more than what is legally allowed in each
jurisdiction. Regular working hours are defined in accordance with local laws.
Working
conditions:
Work-Life
Balance
Impact (positive): Nokia offers
global paid family-related leave
which often exceeds local
regulations to align with defined
internal best practices
Nokia provides paid time off for holiday for all employees to be taken in each calendar
year. In addition, other types of leave, such as maternity, paternity, parental, adoption,
sick leave and bereavement, are considered important. Nokia’s global approach is to
consider all sabbatical requests for between 3 and 6 months (after 4 years’ continuous
employment) and 3 to 12 months (after 10 years’ continuous employment) subject to
meeting business needs and local regulations regarding sabbaticals.
Nokia’s Global Child Leave Policy has been incorporated as a minimum standard into all Nokia
countries' leave of absence policies. It provides any Nokia employee who becomes a parent,
regardless of gender, with at least three months’ paid leave and the right to return to work up
to one year following the date of birth or adoption. With this, Nokia wants to enhance parents’
bonding with their children and to drive a societal and mindset shift in fathers' rights too.
Nokia has a Flexible Working Standard Operating Procedure (SOP), which applies to all
employees of the Nokia Group.
Working
conditions:
Adequate
wages
Risk: Increases in wages or changes
in the related practices / regulations
resulting in increases in Nokia’s
personnel related costs
Our compensation and benefits programs contribute to our business success by balancing
market competitiveness and affordability based on a total compensation approach. These
are performance-driven (both on an individual and company basis), flexible and fair. The key
elements of our compensation structures are annual base salary, incentive/bonus programs,
recognition programs and equity-based long-term incentives.
Sub-topic
Material impacts, risks and opportunities
Management
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Sub-topic
Material impacts, risks and
opportunities
Management
Equal treatment and
opportunities for all:
Gender equality and
equal pay for work of
equal value
Impact (positive): Nokia has
adopted gender equality and
equal pay principles for own
employees
As we recognize how unique perspectives can build world class technology and drive
our business forward when we work collaboratively, we actively foster diversity,
equity and inclusiveness, creating a culture of trust and belonging. We aspire to be
more representative at large, so that our teams reflect the communities we serve
and the diverse world around us.
Nokia annually analyzes the gender equality of our compensation practices and funds
additional, focused salary increases to remediate unexplained gender pay gaps. Nokia
consistently investigates our policies and practices to address decisions, customs
and processes that might threaten a segment of our population unfairly. Nokia is
committed to equal pay for work that is of equal value.
Equal treatment and
opportunities for all:
Training and skills
development of own
workforce
Impact (positive): Nokia offers
extensive training and skills
development opportunities to
its own workforce regarding
knowledge and competence
development as an essential
element of its business strategy,
which allows employees to
maintain and enhance their skills
Risk: Inability to attract,
develop and retain a future-
fit workforce with right skill
set and in the right locations
in the rapidly changing
technological environment
Based on the feedback provided, career and development opportunities are
important to Nokia’s employee and Nokia has further invested in internal career path
tools and resources to enable employees to access viable and often personalized
guidance on career growth choices. Nokia is investing in measures that target the
development of its people at a company and business group level, focusing on critical
skills, stretch assignments and exposure to different parts of the business through
internal mobility initiatives.
Nokia business groups are responsible for identifying future skills and capabilities
needs in order to keep up with innovation, and evolving technology and business
environments. Future-fit talent is a key enabler of Nokia’s business strategy and is
central to our approach to engaging, developing, and retaining our people. Nokia is
reviewing its talent and performance management to align with Nokia's strategy,
ensure the greatest visibility of our Nokia talent, and support the development of
the necessary skills for success and growth.
Our approach to determining material impacts, risks and
opportunities is described under the ‘General information’
section.
Policies
Our people represent the essence of who we are as a company.
At Nokia we aspire to have our people grow and develop
continuously in a culture that is inclusive and diverse. In 2024,
we strengthened our People Agenda as we continued to
cultivate one high-performing Nokia centered around talent,
leadership and culture, while following our essential principles
(“Essentials”) of being open, fearless and empowered.
Fair workplace and our policies
We uphold high standards of ethics and human rights in our
own activities and aim to treat all our employees and other
stakeholders in accordance with internationally recognized
ethical and responsible business practices and relevant
legislation.
Our Code of Conduct, our People Framework, our Human
Rights Policy, and local employment laws, policies and practices
are the basis for our labor conditions. We are committed to the
principles laid out in the United Nations Universal Declaration
of Human Rights, the United Nations Global Compact and the
International Labor Organization’s Declaration of Fundamental
Principles and Rights at Work. We follow and, where possible,
strive to exceed the standards set out by local labor laws and
regulations. We publish information related to our employment
policies and guidelines on our intranet. Refer to the section
General information, ‘Policies adopted to manage material
sustainability matters’ for further information regarding the
Nokia policies.
Our policies, Standard Operating Procedures (SOPs) and Code
of Conduct apply to our employees and suppliers. Our policies
cover zero tolerance for child and forced labor, freedom of
association and collective bargaining, non-discrimination,
humane treatment, working time, disciplinary practices,
compensation, and occupational health and safety.
On the topic of discrimination, our People Framework
specifically states that “No employee or candidate for
employment will, therefore, receive less favorable treatment
due to their race, religion, belief, color, nationality, ethnic
origin, age, sex, sexual orientation, gender identity,
characteristics or expression, marital status, connections with a
national minority, disability, membership or non-membership
of a trade union, or other protected classes”.
Secure employment
Nokia ensures support for all aspects of ‘social protection’.
All Nokia employees are entitled to paid sickness absence.
The duration and level of sickness pay varies by country and
considers prevailing market practice and any mandatory
provisions. All Nokia employees are eligible for additional
financial payments in the event of involuntary termination of
employment, and severance pay packages vary by country and
reflect mandatory and local market practice. Nokia provides
support in the event of work injury and acquired disability.
Nokia has a global policy that provides a minimum of 90 days’
paid leave and a further 9 months’ unpaid leave for all new
mothers and fathers; many Nokia countries have local policies
that exceed this level of support for maternity absence.
Nokia provides for family leave in line with local legislative
requirements. All Nokia employees participate in arrangements
that support them in building financial security for the future.
The benefit plan design for retirement varies from county to
country: in some countries provision is wholly via participation
in State plans whilst in other countries it is a combination of
Nokia and State plans.
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Working time and work-life balance
We do not permit our people to work more than is legally
allowed. We define regular working hours in accordance with
local laws. In countries were employment of young workers is
customary and allowed by local law, workers from 15 to 18
years old (or as specified by local legislation) are not permitted
to carry out work that may be hazardous, unsafe or unhealthy
or to work night shifts.
We provide guidance through our Worktime Standard Operating
Procedure document and guarantee a minimum of one day off
in every seven days in our production operations.
Globally, Nokia supports employees’ work-life balance with
flexible working arrangements that allow remote/home-based
working, provided the nature of their job role is such that they
are not required to be on a particular site to be able to perform
their duties. Flexible working enables employees to balance
their work and family obligations in a way that meets their
individual needs. In addition, Nokia offers paid time off for
various life events, such as marriage, funerals, house moves,
and volunteering days.
Adequate wages
Our compensation and benefits programs contribute to our
business success by balancing market competitiveness and
affordability based on a total compensation approach. These
are performance-driven (both on an individual and company
basis), flexible and fair. The key elements of our compensation
structures are annual base salary, incentive/bonus programs,
recognition programs and equity-based long-term incentives.
All Nokia employees are paid an adequate wage, in line with
applicable benchmarks. Pay practices are regularly reviewed to
align pay with performance, experience, and the skills required
for every position. We pay at least the minimum wage, comply
with all legal requirements for wages and at a minimum provide
any legally or contractually required benefits.
Nokia policy is that part-time or temporary employees have
access to employee benefit plans.
Since 2019, we have analyzed the gender equality of our
compensation practices and funded additional, focused salary
increases to remediate unexplained gender pay gaps. We
consistently investigate our policies and practices to address
decisions, customs and processes that might threaten a
segment of our population unfairly. While we do not disclose
global salary ratios, we are committed to equal pay for work
that is of equal value (skill, responsibility, etc.). This is applied
without regard for an individual’s personal characteristics such
as gender, race, age, national origin, ethnicity, color, religion,
sexual orientation, gender identity, gender characteristics or
expression, disability, or entitlement to family leave.
Equal treatment and opportunities for all
We actively foster a culture of trust and belonging. We aspire
to be more representative at large, so that our teams reflect
the communities we serve and the diverse world around us.
As part of our People Agenda we have priorities that are
focused on increasing diverse representation and embedding
inclusion into our policies and employee experience.
Nokia is investing in hiring strategies that include attracting and
sourcing diverse pipelines of candidates across roles and location,
including a focus on women in early careers to improve our
gender balance now and for future careers at Nokia.
Training and skills development
Nokia continually builds its culture and refreshes its talent
management, performance management and career
development activities.
Future-fit talent is a key enabler of our business strategy and is
central to our approach to engaging, developing and retaining
our people. We are reviewing our talent and performance
management to align with Nokia's strategy, ensure the greatest
visibility of our Nokia talent, and support the development of
the necessary skills for success and growth.
Annual development reviews are available to all employees.
Nokia people managers are encouraged to provide continuous
feedback and hold quarterly discussions with employees. In
2024, employees and people managers were encouraged to
focus on feedback giving and receiving.
Our people development focus
has three main pillars:
1. Talent, which covers growth and talent
development, succession planning,
career moves and rotations, sustainable
talent pipelines, and future-fit talent.
2. Leadership, which includes leadership
principles, leadership development,
a top leaders’ community, and
sponsorship and mentoring.
3. Culture, which includes creating a safe
space, employee engagement, and
accountable leaders.
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Processes for engaging with own workforce
and workers’ representatives about impacts
Freedom of association and collective bargaining
We respect the right to collective bargaining and freedom of
association. Collective bargaining agreements are local and,
in most countries where we have collective bargaining
agreements, employees who have chosen not to be members
of a union are also covered by similar terms.
Employees can choose freely to join, not join or leave unions
and associations and select their representatives based on
local and international practices.
In countries and regions where works councils operate, we work
collaboratively with them. We communicate regularly with
employees directly as well as with their representatives in
meetings such as at the level of European Works Councils (EWCs).
Employee representatives are entitled to participate in training
that is necessary to carry out employee representative duties
and to increase their knowledge of trade union rights and
obligations. Additionally, employee representatives can use
company infrastructure during the workday.
The responsibility for the engagement with own workforce
and workers’ representatives rests with Chief People Officer
through the People Relations Team and Chief Legal Officer
through the Labor and Employment Law Team.
Equal Opportunities
Investments have been made in internal career path tools and
resources to enable employees to access viable and often
personalized guidance on career growth choices. In addition,
the Talent Acquisition team provides advice to employees
throughout the internal vacancies and career application process.
Processes to remediate negative impacts
and channels for own workforce to raise
concerns
The processes and channels available to our workforce to raise
concerns and have them addressed are described in the
section ‘Business Conduct (ESRS G1)’, ‘Reporting channels and
investigations process’.
Actions
Social protection measures
The business environment in which Nokia operates is highly
competitive and occasionally requires cost reassessment,
including that of the employee base. In those circumstances,
Nokia prioritizes provision of support for impacted employees
and the adoption of mitigating and social protection measures
such as:
■
Offering employees continued training opportunities to
maintain and develop their skills and competencies to meet
the anticipated changes in business, markets and the
technology environment in which we operate.
■
Supporting and encouraging redeployment activities for
affected employees to find new job opportunities in the
company, including retraining as necessary and as appropriate.
■
Offering severance packages to exited employees that are
often of greater value than what is required by local laws.
Nokia also offers career counseling and job search support
outside the company.
Ethics and Non-discrimination initiatives
implementation
We implement our policies to prevent, mitigate, and address
discrimination through a combination of proactive measures,
robust reporting mechanisms, and corrective actions.
Prevention is achieved through ongoing awareness campaigns
and mandatory training programs designed to educate
employees on inclusive behaviors and the importance of
diversity, ensuring that these principles are deeply embedded
in our organizational culture.
To address potential violations, we have a well-established
Ethics Helpline, supported by a strong speak-up culture.
Employees are encouraged to report any concerns about
behaviors that may conflict with our values. Once a report is
made, it is handled by our dedicated Ethics team, which assigns
an investigator to thoroughly review the concern and
determine appropriate outcomes.
Annual gender pay gap review
We also continued to drive improvements in gender diversity by
monitoring pay equity. In 2024, Nokia implemented a second
remediation round in December, ensuring any statistically
significant unexplained pay gap was closed. We will continue to
emphasize and apply mitigations to improve in gender diversity.
Competence development
Our competence development activities focus on leadership,
business-critical, and technical skills for current and future
needs. We offer learning solutions to our customers, partners,
and employees. The average number of all internal learning
hours was 19 hours per employee in 2024. To reinforce a
culture of learning, we provide our employees with a tool called
the Learning Index. The Learning Index enables employees
to monitor their commitment to continuous learning and
information sharing.
Leadership development
Our leadership principles are called LEAD (Lead with courage;
Empower performance; Act with respect; and Deliver Nokia First).
These are being launched to all people managers in early 2025
and will include behavioral indicators that back up each principle.
In 2024, we continued to support people managers with a
specific training program, Leadership for Impact, through
which 17 sessions with 312 participants were delivered in 2024.
We also continued to invest in all levels of leaders through our
online platforms including branded solutions from Harvard
ManageMentor and Harvard Spark. This year 3545 employees
used these two leadership training solutions. Additionally, our
employees completed 16285 self-paced leadership online
trainings and achieved 4410 badges.
Future Talent Growth
We provide growth opportunities for future talent that allow
targeted development at the company level and business
group level focusing on critical skills, stretch assignments, and
exposure to different parts of the business through internal
mobility initiatives. Business groups and functions have unit/
function-specific initiatives in place to address their strategic
talent needs.
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Targets and progress in targets
Gender hiring and female own employees targets
In 2021, we set out two diversity targets to address the under-
representation of women across Nokia’s own employees and
provide equal opportunities to improve our gender balance.
Our two targets in 2024 were:
28% minimum
(YTD) female hiring in external recruits in 2024
25%
female in overall Nokia’s own employees by 2030
In 2024, we achieved the threshold for our gender hiring target
of 28% through increased marketing, communication and
talent attraction activities to make Nokia’s employer brand
stand out for diversity-friendly employment policies and to
attract diverse talent. We also worked to improve our inclusive
hiring practices to ensure we upskilled key stakeholders such as
our talent acquisition team and hiring managers to adopt
consistent actions that drive fair hiring practices.
For 2025, we continue with our target to achieve a share of
women to a minimum of 25% of all employees by 2030.
The ratio of women in Nokia’s own employees was 23% at the
beginning of 2024 and remained the same at the end of 2024.
We continue to work on development and retention for gender
diversity. We track targets with key stakeholders in the
business, people and talent acquisition teams.
Progress against ESG targets in 2024
Target year
Base year
Base value
Target
2024 results
Target status
S1: Own workforce
2030
2021
22%
Increase the share of women to a minimum
of 25% of total employees.
The ratio of women was 23% at the beginning
of 2024 and remained the same at the end of
2024. We continue to work on development
and retention for gender diversity.
On track
2024
2023
28%
Reach a minimum of 28% female hires in
global external recruits.
28% of external recruits were women. We
achieved the 2024 target via increased
marketing, communication and talent
attraction activities to make Nokia’s
employer brand stand out for diversity-
friendly employment policies and attract
diverse talent.
Achieved
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Disclosure tables
Nokia continuing operations
As outlined in the section ‘Basis for preparation’ within ‘General Information’, metrics are
presented separately for Nokia continuing operations and discontinued operations comprising
Submarine Networks. Disclosure tables presented in this section include continuing operations
(Nokia Group excluding Submarine Networks) both for the reporting year 2024 and comparative
period 2023 unless otherwise indicated. Key metrics for the discontinued operation for the
reporting years 2024 and 2023 are disclosed separately below this section.
Number of employees by contract type and gender, 2024
Employees by gender
Female
Male
Other category(1)
Total
Number of permanent employees
17 020
57 473
1 134
75 627
Number of temporary employees
877
1 929
1
2 807
Number of non-guaranteed hours employees
0
0
0
0
Number of employees
17 897
59 402
1 135
78 434
(1)
Non-binary, third gender and/or not disclosed.
At the end of 2024, Nokia employed 75 633 people, with an average of 78 434 employees across the year.
Number of employees by contract type and country / region, 2024
Employees by country/region
Asia-Pacific
India
Europe (w/o
Finland)
Finland
LAT
MEA
NAM
China
Total
Number of permanent employees
3 443
17 270
25 295
6 316
2 669
2 929
9 064
8 641
75 627
Number of temporary employees
78
514
1 423
400
80
41
223
48
2 807
Number of non-guaranteed hours employees
0
0
0
0
0
0
0
0
0
Number of employees
3 521
17 784
26 718
6 716
2 749
2 970
9 287
8 689
78 434
Employee turnover, 2024
Employee turnover in reporting period
2024
2023
Total number of employees left the company
8 934
6 543
Turnover rate, %
12%
8%
Number of non-employees, 2024
Number of non-employees
2024
Number of non-employees in own workforce
1 869
Employees at top management level, 2024
Employees at top management
Number
Share, %
Female
597
17%
Male
2816
83%
Total
3 413
100%
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Employees by age group, 2024
Employees by age
Number
Share, %
Under 30 years old
10 292
13%
30–50 years old
45 600
58%
Over 50 years old
21 451
27%
Unknown(1)
1 091
1%
Total
78 434
100%
(1)
The age group of the remaining employees is unknown.
Employees skills development, 2024
Employee gender
Employees who participated in
regular performance and career
development reviews, %
Employee
95%
Female
23%
Male
72%
Training hours, 2024
Employee gender
Average number of training
hours per employee
Employee
19
Female
17
Male
19
Other category(1)
16
(1)
Non-binary, third gender and/or not disclosed.
Employee category breakdown, 2024
Employee category
Employees who participated in
regular performance and
career development reviews, %
Average number of training
hours per employee
Employee
95%
19
People managers
8%
13
Individual contributors
87%
19
Gender pay gap and annual total remuneration, 2024
Remuneration metrics
2024
Gender pay gap between female and male employees, %
0.7%
Annual total remuneration ratio
50.71
Based on the adjusted pay analysis, female employees earn 0.7% less than male employees
accounting for any applied controls.
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Discontinued operations
Number of employees by contract type and gender, 2024
Employees by gender
Female
Male
Total 2024
Number of permanent employees
377
1 418
1 795
Number of temporary employees
44
125
169
Number of non-guaranteed hours employees
0
0
0
Number of employees
421
1 543
1 964
Number of employees by contract type and country / region, 2024
Employees by country/region
Asia-Pacific
Europe (w/o
Finland)
LAT
NAM
Total 2024
Number of permanent employees
5
1 785
1
4
1 795
Number of temporary employees
0
169
0
0
169
Number of non-guaranteed hours employees
0
0
0
0
0
Number of employees
5
1 954
1
4
1 964
Employee turnover, 2024
Employee turnover in reporting period
2024
Total number of employees left the company
252
Turnover rate, %
13%
Employees at top management level, 2024
Employees at top management
Number
Share, %
Female
1
7%
Male
14
93%
Total
15
100%
Employees by age group, 2024
Employees by age
Number
Share, %
Under 30 years old
311
16%
30–50 years old
908
46%
Over 50 years old
745
38%
Total
1 964
100%
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Reporting principles for Nokia own
workforce metrics
Nokia's own workforce include both employees and non-
employees. Non-employees are short-term external temporary
resources sourced from external suppliers and engaged in
employment activities under the direction of Nokia. This
includes individuals performing the same work as Nokia
employees, such as those filling in for absent employees or
performing regular work at the same site as Nokia employees.
Submarine Networks is reported separately and is not
considered part of Nokia's continuing operations.
Characteristics of Nokia employees
Number of employees by contract type and gender
Employee data presented for Nokia’s continuing operations is
reported in headcount and represents averages across the
reporting period, from January 2024 until December 2024.
This data aligns with information reported in the financial
statements. Employee data presented for discontinued
operation is reported in headcount and represents headcount
at the end of the reporting period.
Employee counts are further categorized by gender: female,
male, and other category. This includes permanent and
temporary employees.
Permanent employees imply those which are employed on a
permanent contract of employment and are on Nokia’s payroll,
in any jurisdiction.
Temporary employees imply those which are employed on
contract of employment that are not permanent in nature
and are on Nokia’s payroll, including fixed term contracts and
internships. This excludes contractors, consultants or any other
independent workers that get paid by Nokia via invoice and not
via payroll.
Number of employees by contract type and
country/region
Employee numbers, including permanent and temporary
employees, are distributed across three countries: India,
Finland, and China, and key regions that represent the primary
locations for Nokia's workforce.
Characteristics of non-employees in Nokia’s own
workforce
Non-employee metric is reported in headcount and disclosed
as total average across the reporting period.
Diversity metrics
Employees at top management level
Nokia top management includes line managers and individual
contributors who are senior directors and executives.
Internally, this corresponds to job grade 13 and above.
Employees by age group
The total number of employees by age group for Nokia’s
continuing operations is reported in headcount and represents
averages across the reporting period. The number of employees
by age group for discontinued operation is reported in
headcount and represents headcount at the end of the
reporting period.
Female own employees target
Share of female in Nokia’s overall own employees is reported as
average number of own employees identified as female from
January 2024 until December 2024 compared to the total
number of employees. The reported metric excludes
Submarine Networks discontinued operation.
Gender hiring target
Female hiring metric is calculated by dividing externally hired
employees identified as female by total headcount of external
recruits during the reporting period. The total external recruits
include both regular employees and trainees. The reported
metric excludes Submarine Networks discontinued operation.
Training and skills development metrics
Employees skills development
The percentage of employees participating in regular
performance and career development reviews is based on
2023 review results. The estimated metric for 2024 is based on
2023 actuals due to the timing of the performance review
process, which extends into the first quarter of the following
year from the reporting period and the process formally
concludes in the second quarter.
Training hours
The training and learning hours metrics include the average
hours of training per employee, calculated by dividing the total
learning hours by the number of learners (employees).
The employee base for this report include all Nokia employees
and trainees, as measured by headcount at the end of
reporting period December 2024.
Training types include external training. These training hours
are self-reported by the employees. This category
encompasses formal training as well as informal learning
activities, such as reading books or attending seminars.
Remuneration metrics
Gender pay gap
To ensure gender pay equity, Nokia conducts biannual in-depth
pay analyses. These analyses investigate whether there are
statistically significant differences in pay distribution between
male and female employees within groups of similar individuals.
To identify potential issues, employees are initially grouped
based on geography and/or role type. Within each group,
Nokia further controls for neutral, objective, and deliberate pay
differentiators at Nokia, such as job grade and performance.
The adjusted pay gap measures the difference in compensation
for employees performing work based on neutral, job related
factors. The adjusted gap is the weighted average pay equity
gap across groups, taking into account currently applied
objective and gender-neutral controls and settings. The
weighing is based on female employee headcount, meaning
groups with larger female employee headcounts factor in more
to the aggregate number than those with smaller female
employee headcounts.
Nokia focuses on addressing systemic differences, not
individual variations. The goal is to ensure there are no
patterns of women being paid differently than men.
Annual total remuneration
Annual total remuneration ratio is calculated by dividing the
CEO's total pay by the average employee salary.
Annual total remuneration encompasses all salary, benefits,
equity, and bonuses paid. The CEO's bonus payout requires
approval from both the Board of Directors and the Personnel
Committee.
Nokia's average salary is calculated by dividing the total salaries
paid by Nokia’s average headcount during the reporting year.
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Workers in the value chain (ESRS S2)
Nokia drives active engagement across its value chain, working with its suppliers to raise the standards in its ecosystem in key ESG areas including labor rights and Health and Safety. Supplier due-
diligence is one of the four pillars of Nokia’s responsible sourcing strategy complemented by supplier development and learning and industry collaboration as key enablers for success.
Nokia conducts business with around 9 300 suppliers in over 100 countries. For a description of Nokia’s sourcing categories and countries that also reflects sectors where Nokia’s value chain
workers are employed, please refer to the section ‘Business model and value chain’ in the section ‘General information’.
Material impacts, risks and opportunities related to workers in the value chain
The double materiality assessment indicated that working conditions and other work-related rights for workers in the value chain are material sub-topics for Nokia. The following table describes the
material impacts, risks and opportunities as well as how Nokia manages these.
Working conditions:
Working time
Impact (negative): Suppliers’ employees in supplier manufacturing facilities or
customer services sites may be exposed to excessive or non-voluntary
overtime, continuous work without day off during peak manufacturing or
projects with short execution time.
Working hours related controls are part of our Supplier due-diligence, one of the building blocks under our
responsible sourcing and supply chain strategy. Nokia endorses internationally agreed standards related to working
hours cap and leave aiming to lead suppliers’ employees to experience good work-life balance. Nokia conducts risk
based due-diligence via online and onsite audits and corrective action management/supplier training.
Working conditions:
Adequate wages
Impact (negative): Suppliers’ employees in supplier manufacturing facilities or
customer services sites may be exposed to receiving insufficient wages,
deductions from their wages, not receiving correct full and final settlement
when terminating employment or working under false apprenticeship schemes.
Wages and benefits subject is part of our Supplier due-diligence, one of the building blocks under our responsible
sourcing and supply chain strategy. Nokia conducts risk based due-diligence via online and onsite audits and
corrective action management/supplier training.
Suppliers’ employees shall receive wages and benefits in line with their contractual agreements and industry
minimum standards, without unnecessary deductions and shall meet at least Living Wage minimum.
Working conditions:
Health and Safety
(H&S)
Impact (negative): Nokia business activities associated with installation of
network equipment & support services, site acquisition & permitting may include
health and safety threats related to working at height, road safety, electrical
safety, underground assets, street works and working in high or extreme risk
countries/regions.
Health and Safety is one of the building blocks of Responsible Business under our ESG strategy. Strategic focus areas
include: Leadership & Behavior, Implementation of Global High-Risk Health & Safety Standards, Improving Existing
Services, Continuity of Operations, Assurance & Governance, Global Health and Safety Risk & Opportunity Analysis.
Health and Safety remains a key priority for Nokia. Group leadership representatives set the strategic direction and
policies for Health and Safety at Nokia. They demonstrate their strong commitment to excellence in Health and
Safety by participating in and leading various risk and opportunity reviews held throughout Nokia’s global markets.
Nokia has a broad range of programs targeting continuous improvement to address job-related Health and Safety
risks when installing and maintaining equipment and providing services and solutions to Nokia’s customers. Nokia
delivers training, conducts analyses and assessments, and implements consequence management.
Nokia’s Health and Safety Management System is globally certified and based on the internationally recognized ISO
45001 standard. Coverage within the scope is comprehensive across all business groups, network services and
installations, and customer operations and supporting corporate functions. In 2024, the Health and Safety
management system covered 52% of Nokia’s sites and 88% of employees (excluding discontinued operations).
With Nokia’s global Health and Safety Management System, audits and certifications, and having demonstrated
continuous improvement year-over-year, Nokia is positioned as an effective leader in global Health and Safety
management systems and programs worldwide.
Nokia works proactively to minimize the potential and impact of work-related incidents. When accidents occur, they are
thoroughly investigated, corrective actions are identified and these provide an opportunity to adapt safety programs and
prevent future recurrence.
Other work related
rights: Forced
labour
Impact (negative): Suppliers’ employees may be exposed to forced labor,
including having work without valid employment contract, exposure to recruitment
fees being collected as part of recruitment channels, casual labor entering our
services supply chain, risks being particularly higher in deeper supply chain tiers,
and in services supply chain where execution of lower skill profile last mile tasks
may occur, especially in remote areas which are difficult to reach.
Forced labour prevention is part of our Supplier due-diligence, one of the building blocks under our responsible
sourcing and supply chain strategy. We have robust due-diligence practices in place, including risk mapping, online
and onsite audits, capacity building, remediation, consequence management, performance evaluation, stakeholder
grievance. We also collaborate with customers and industry consortium on the same.
Sub-topic
Material impacts, risks and opportunities
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Identification and assessment of material
impacts, risks and opportunities
Nokia’s approach to determining material impacts, risks and
opportunities is described under the ‘General information’
section.
Specific impacts, risks and opportunities were identified on the
basis of supplier assessments and audits that Nokia conducts
each year, as well as industry forums, stakeholder inquiries and
supplier workshops and webinars. Findings related to working
time, wages, health and safety and forced labor risk were the
most frequent findings in Nokia’s supplier audits in 2024 (refer
to the table under the section ‘Actions’ for examples of
identified non-compliance and table under the section
‘Disclosure Tables’ for audit findings). The information
gathered through this process was used for the identification
of material impacts, risks and opportunities related to workers
in Nokia’s value chain.
Policies
The Nokia Code of Conduct is the company’s highest-level
policy which also covers Nokia’s commitment to Human Rights
in its own operations, supply chain and business relationships.
Refer to the section General information, ‘Policies adopted to
manage material sustainability matters’ for further information
regarding the Nokia policies.
Nokia expects its suppliers to adhere to the Nokia Third-Party
Code of Conduct and provides them with Nokia Supplier
Requirements, including the Responsible Business Alliance’s
(RBA) Code of Conduct and additional, Nokia-specific
sustainability requirements.
Nokia labor-related requirements to Nokia’s suppliers are
based on international standards such as the Universal
Declaration of Human Rights, the International Labor
Organization Core Conventions and the Social Accountability
SA8000 Standard. These requirements include working time,
overtime, leaves, compensation and benefits as well as modern
slavery risk and forced labor prevention and are covered under
Nokia’s Supplier Requirements, which include the requirements
from the latest version of the Responsible Business Alliance’s
Code of Conduct as well as Nokia-specific supplier
requirements on top of industry Code. An overview of Nokia’s
Supplier Requirements is published on Nokia’s website and
made available to all stakeholders.
These Supplier Requirements are cascaded down to suppliers
as part of qualification and contracting, as well as supplier
training and are expected to be cascaded down to the next tier
of suppliers by Nokia’s suppliers.
The Nokia Health, Safety and Labor Conditions Policy as well
as Nokia’s Life-Saving Rules cover all operations performed
by everyone working on behalf of Nokia at Nokia’s own or
customer premises. Health and Safety requirements are also
integrated into Nokia’s contractual requirements with suppliers.
Nokia has developed global Health and Safety implementation
standards to cover high-risk activities (working at height, road
safety etc). These global standards are localized by competent
country-based Health and Safety practitioners to include
country- and customer-specific requirements. These standards
are published on Nokia’s external supplier portal and
communicated by the relevant stakeholders locally and via
supplier training.
Nokia has set stringent KPIs related to its in-house Supplier
Health and Safety Maturity Assessment. This assessment
helps to ensure that suppliers know Nokia’s Health and Safety
requirements and have the capabilities to deliver work safely
on Nokia’s behalf.
Processes for engaging with value chain
workers about impacts
Nokia engages with value chain workers through on-site audits
and inspections conducted to the suppliers. These include but
are not limited to management system reviews and interaction,
site tours, worker interviews, timesheet and holiday leave
checks, remuneration checks, employment contract and file
checks. When performing sampling for documentation reviews
and worker interviews, vulnerable group representatives
are included. On-site audits are conducted based on risk,
prioritizing supplier sites in high-risk geographies as well as
supplier commodities with high risk of labor rights infringements.
Nokia’s supplier-related monitoring, assessment and auditing
activities also include EcoVadis assessments. These are online
assessments of supplier policies and procedures, which include
evaluations of policies and controls relating to working time
and leave, remuneration, recruitment and forced labor
prevention. EcoVadis assessments are repeated every two
to three years depending on the supplier score.
Interaction with supplier employees is also conducted via
supplier training (on-site workshops and webinars).
Health and Safety worker consultations and interactions
include Supplier Health and Safety Maturity Assessments; on-
site sustainability audits (worker interviews); site monitoring
and inspection programs; EcoVadis assessments; the
implementation of Nokia’s Life-Saving Rules (any worker has
the right to refuse work); Nokia Senior Leader Safety Tours;
Nokia’s License to Work program; supplier competence
development including Nokia’s Safety Capability and
Enablement Program; safety stand-down days; and joint on-
site training events in collaboration with specialist companies.
Relevant Health and Safety risks are communicated to value
chain workers via Health and Safety plans, Global Health and
Safety High Risk Standards and local Health and Safety
standard operating procedures (SOPs), safety alerts, and
bulletins to communicate good practice and highlight potential
risk-related issues. The Nokia Supplier Health and Safety portal
is used to communicate processes, training and good practices.
There is also a Health and Safety Reward and Recognition
program that includes suppliers.
Operational responsibility for the engagement of workers in
the value chain is with Head of the Sustainable Supply Chain for
labor rights and Head of People Safety & Security for Health
and Safety.
Processes to remediate negative impacts
and channels for value chain workers to
raise concerns
Findings from audits and assessments are addressed through
corrective action / improvement plans that are communicated
to the supplier. In the event of a health and safety incident
or accident, an investigation process is triggered. The
investigation focuses on the determination of the root cause
and then corrective and preventative actions are mandated.
The implementation of such action plans, whether triggered
by audits or investigations is monitored by local Health and
Safety teams. Nokia has also developed a Health and Safety
Consequence Management Process to transparently and fairly
evaluate the causation of all health and safety incidents.
For incidents related to child and forced labor Nokia also has
Child and Forced Labor Remediation Process.
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The main channel for value chain workers to raise concerns
related to their employer should be their employer grievance
channels. Besides their own channels, concerns can also be
raised through the Nokia Ethics Helpline as well as via worker
interviews that are conducted as part of supplier audits and
site inspections. Refer to the sections ‘Reporting channels and
investigations process’ and ‘Protecting against retaliation’
within ‘Business conduct (ESRS G1)’ for more information on
grievance channels and retaliation policies.
Actions
In 2024, Nokia conducted a total of 606 supplier audits and
EcoVadis assessments. Supplier assessment coverage is
reflected under the ‘Disclosure tables’. These included 101 in-
depth corporate responsibility audits. There were 16 countries
covered by these audits, such as China, India, Japan, Malaysia,
Mexico, Singapore, Taiwan, Thailand, the Philippines, and
Vietnam. The number of findings per category in these audits
and examples of some findings and corrective actions taken
are disclosed in the following table. As a result of the audits,
420 improvement recommendations were made, which were
addressed through corrective action plans. Most of these
recommendations aim to improve the working conditions for
the value chain workers. All non-conformities identified were
analyzed by Nokia’s experts in the sustainable supply chain
team, and corrective actions were included in Nokia’s training
materials as a mechanism for systematic improvement.
Nokia aims to close these audit findings within six months of
the audit completion date. In 2024, 38% of our corporate
responsibility audit findings were closed within this time.
Beyond in-depth audits, 469 online assessments with EcoVadis
were also completed. In 2024, 84% of Nokia suppliers covered
with valid EcoVadis assessment had a satisfactory score. All the
suppliers with scores below expectations were addressed with
improvement requests.
Learnings from findings and their remediation are shared at
supplier workshops, webinars and training sessions as well as
through public reporting.
Nokia is also collaborating with industry peers (e.g. through the
Responsible Business Alliance) on new tools and learning materials.
Examples of identified non-compliance and actions taken:
Category
Non-compliance identified
Actions taken by supplier
Child and juvenile labor
avoidance
There is an inadequate policy regarding Interns lacking
required protection. For instance, the current intern
policy doesn’t state critical information like interns
provided assignments that complement their course of
study, maximum duration of apprenticeship which
shouldn’t be more than 6 months, no agency or
intermediary hired for recruitment, hiring, arrangement,
and management of interns and a prohibition of use of
interns to fill a labor shortage.
Intern policy has been updated to include all such gaps
and the updated policy communicated to interns.
Forced Labor:
Employees pay medical
check fees
New employees pay 40 RMB, or 2.1 % of a worker's base
salary for their own health check as fee.
All employee files including employment agreements were
reviewed. New format of contract template was
developed with all important terms and conditions and
completed with signatures. New HR person was assigned
and Content Checklist was created for the employee file
for required documents.
Health and safety
Approx 20% of the employees exposed to occupational
hazards in the factory did not wear appropriate labor
protection, e.g. workers in the CNC workshop were
wearing ordinary disposable masks instead of dust masks
The supplier has reviewed the personal protective
equipment (PPE) wearing guidebook that sets out the
guidance and standards for wearing different types of
PPE. The supplier also shared pictures of workers wearing
PPE, that appears appropriate for the activities that they
are performing.
Working hours
Excessive monthly overtime working hours were observed
(46 to 54 hours per month) in different sampled months.
The supplier has set a limit to the overtime working hours.
The monthly overtime hours meet legal requirement of 46
hours with a maximum of 38 hours in a month. Evidence
has been shared. Training for control of working hours is
provided to workers. The same working hour trend was
also observed in the production area.
Remuneration and
benefits
Salary from which the social benefit of Provident Fund is
calculated is less than the Basic + Daily Allowance of the
region, an amount from which such provident fund needs
to be calculated.
Supplier has analysed the situation. Salary has been
revised based on the latest salary structure for future
compliance. The deficit amount in the preceding month
has been paid to the provident fund department.
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Targets and progress in targets
The targets reflect the due diligence programs that are
addressing the policy areas including forced labor, health and
safety, remuneration and working time.
Supply chain
Satisfactory sustainability score
Nokia has set the overall target of 80% of suppliers achieving a
satisfactory sustainability score (based on aggregated weighted
share) in supplier performance evaluations (based on corporate
responsibility on-site audit programs, EcoVadis, CDP, and
conflict minerals). This KPI includes all major due-diligence
assessment results through performance score. Individually
Nokia also publicly discloses the number of on-site and online
sustainability audits; the number of audit findings related to
working hours, remuneration, forced labor risk, health and safety
etc and type of findings and remediation actions taken.
Progress on target: On track
78%
of suppliers received a satisfactory sustainability score in
Nokia’s assessment programs.
3TG traceability and conflict free status
98% 3TG traceability and conflict free status to smelter level in
Nokia’s supply chain as well as conflict free status of the
smelters. Extended due diligence and conflict free status of
cobalt, mica, aluminum and copper.
Progress on target: Not on track
87%
traceability to the smelter level in Nokia’s supply chain as well
as conflict-free status of the smelters.
Health and Safety
With regards to Health and Safety, there are a number of
internal targets. These include targets associated with value
chain workers. Focus areas and targets have been established
for topics such as:
Incident frequency rate reduction
Progress on target: Achieved
Nokia own workforce LTIFR and TRIFR showed a reduction from
2023 (LTIFR as 0.085 from 0.089 in 2023 and TRIFR as 0.244
from 0.277 in 2023).
Zero critical or fatal incidents among own workforce,
suppliers and third-parties
Progress on target: Not achieved
6
(six) work-related fatal incidents. This include 0 (zero) work-
related fatal incidents involving Nokia own workforce, 5 (five)
work-related fatal incidents involving contractors/
subcontractors and 1 (one) work-related fatal incident involving
a third-party.
Supplier Health and Safety maturity
100% “H&S Recommended or Preferred supplier”
status by 2030.
Progress on target: On track
16%
of relevant suppliers met “H&S Recommended or Preferred
supplier” status.
Projects compliant with the strengthened requirements of
HRPIA process
96% of projects compliant with the strengthened requirements
of Nokia’s High-Risk Project Implementation Assessments
(HRPIA) process
Progress on target: Achieved
97%
of High-risk projects were found to meet Nokia’s minimum
non-negotiable requirements.
Nokia Senior Leader Safety Tours
Creating a safer work environment starts with good leadership.
Nokia leaders are in key position to strengthen the Health and
Safety culture in Nokia. Conducting a Senior Leader Safety Tour
is a targeted, direct and strategic way to engage with local
teams and value chain workers in order to influence positive
safety behaviors.
In 2024, Nokia targeted a cohort of 60 senior leaders to
conduct safety tours of installation sites.
Progress on target: Achieved
87
tours led by cohorts of Nokia’s top level 4 senior leaders during
2024. In total, Nokia conducted 241 Senior Leader Safety
Tours during 2024.
The 2025 target value has been increased: a cohort of 80 senior
leaders to conduct safety tours.
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Progress against ESG targets in 2024
Target year
Base year
Base value
Target
2024 results
Target status
S2: Workers in the value chain
2030
2020 (1)
22%
100% of suppliers delivering high risk activity to meet “H&S
Recommended or Preferred supplier” status in our Health & Safety
maturity assessment.
16% of relevant suppliers met “H&S Recommended or Preferred supplier” status. To reach
the 2030 Target, Nokia continues to work with our supplier base, engaging and promoting
the supplier safety competences, offering safety training and setting supplier workshops in
order to improve supplier Health and Safety awareness and capability.
On track
2025
2020
95%
98% 3TG traceability and conflict free status to smelter level in our supply
chain as well as conflict free status of the smelters. Extended due diligence
and conflict free status of cobalt, mica, aluminum and copper.
As of 2024 we have achieved 87% traceability to the smelter level in our supply chain as
well as conflict-free status of the smelters (6% basis points improvement from 2023). We
have also extended and conducted due diligence for cobalt, mica, aluminum and copper.
The work continues to close the remaining 11% gap to reach the target in 2025.
Not on track
2025
2020
68%
80% of suppliers achieve satisfactory sustainability score (based on
aggregated weighted share) from supplier performance evaluation (based
on Corporate Responsibility onsite audit, EcoVadis, CDP, Conflict minerals).
78% of suppliers (covered by Supplier Performance Evaluation process on Sustainability),
on average, received a satisfactory sustainability score in our assessment programs.
On track
2024
2023
3
Zero fatal incidents for own workforce, suppliers and third-parties.
In 2024, there were 6 (six) work-related fatal incidents.
These include 0 (zero) work-related fatal incidents involving Nokia own workforce, 5 (five)
work-related fatal incidents involving contractors/subcontractors and 1 (one) work-related
fatal incident involving a third-party.
Not achieved
2024
2023
0
Cohort of 60 senior leaders conduct safety tours to sites to increase
monitoring visibility.
In 2024, Nokia have conducted 87 tours led by cohorts of Nokia’s top level 4 senior
leaders.
Achieved
2024
2023
98%
96% of projects compliant with the strengthened requirements of our
High-Risk Project Implementation Assessments (HRPIA) process.
97% of High-risk projects were found to meet our minimum non-negotiable requirements.
Achieved
2024
2023
LTIFR 0.089
TRIFR 0.277
Reduction in Total Recordable Incident Frequency Rate (TRIFR) and Lost
Time Incident Frequency Rate (LTIFR) for Nokia own workforce.
Nokia measured 2 (two) own workforce safety related Incident Frequency Rates.
In 2024, both LTIFR and TRIFR showed a reduction compared with 2023:
Nokia own workforce LTIFR in 2024 end as 0.085 (2023 result was 0.089)
Nokia own workforce TRIFR in 2024 end as 0.244 (2023 result was 0.277)
Achieved
(1)
The target has been in place already earlier but the year 2020 was the first year of reporting the target result externally.
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Disclosure tables
The following table shows incident reporting related to Health and Safety topics. These include
own workforce, contractors or subcontractors and third parties in line with targets.
Occupational health & safety
2024
2023
Near miss incidents reported (including contractors)
184
183
Lost-time injury incidents of own workforce
13
16
Work-related fatal incidents involving own workforce
0
0
Work-related fatal incidents involving contractors or subcontractors
5
1
Work-related fatal incidents involving third party
1
2
Work-related critical incidents involving own workforce
1
Not reported
Work-related critical incidents involving contractors or subcontractors
1
Not reported
Work-related critical incidents involving third party
2
Not reported
Total Recordable Incident Frequency Rate (TRIFR) and Lost Time Incident
Frequency Rate (LTIFR) for Nokia own workforce and suppliers
TRIFR: Nokia own workforce
0.244
0.277
TRIFR: Suppliers
0.655
Not reported
LTIFR: Nokia own workforce
0.085
0.089
LTIFR: Suppliers
0.401
Not reported
Safety tours executed and reported with senior leaders
87
144
Findings from Nokia in-depth corporate responsibility supplier audits
During 2024, 101 supplier corporate responsibility audits were conducted, resulting in the findings
shown in the following table.
Category of findings
Instances of
non-compliance
Number of
potential risk
areas identified
Total number of
recommendations
for improvement
Child and juvenile labor
1
1
2
Forced labor (contract agreement issues/fine/deduction, etc.)
22
1
23
Health and safety
146
12
158
Freedom of association and right to collective bargaining
3
1
4
Discrimination
3
2
5
Disciplinary practices
6
0
6
Working hours
97
2
99
Remuneration
35
2
37
Management systems
45
1
46
Environmental management system
36
4
40
Total
394
26
420
Supply chain management data
Nokia’s supply chain due diligence includes different types of audits and assessments. The
following tables provide an overview of their coverage, quantity and results.
Supplier coverage in Nokia’s sustainability programs
2024
2023
Responsible Minerals Program
99%
99%
EcoVadis sustainability assessments
64%
62%
CDP Supply Chain Climate Change Program
62%
65%
CDP Supply Chain Water Security Program
52%
53%
Supplier audits and assessments
Number of corporate responsibility on-site audits (focused on labor conditions
and the environment) against Nokia’s Supplier Requirements and SA8000(1)
101
141
Closure percentage of non-conformities identified at corporate responsibility
audits, within audit closure target time
38%
55%
Number of on-site system audits against Nokia’s Supplier Requirements
36
48
Number of suppliers assessed on corporate responsibility on the EcoVadis
sustainable supply management platform
469
446
Share of active suppliers rated “satisfactory” or above on their assessment of
sustainability by EcoVadis
84%
81%
Health and safety
Share of relevant suppliers delivering high-risk activities covered by Nokia’s
Health and Safety Maturity Assessment
98%
99%
Share of suppliers assessed by Nokia’s Health and Safety Maturity Assessment
process meeting ‘H&S compliant supplier’ status
98%
99%
Share of suppliers delivering high risk activity to meet “H&S Recommended or
Preferred supplier” status in Nokia’s Health and Safety Maturity Assessment
16%
18%
Percentage of projects compliant with the strengthened requirements of Nokia’s
High-Risk Project Implementation Assessments (HRPIA) process
97%
98%
Supplier performance evaluation
Share of suppliers achieving a satisfactory sustainability score (based on
aggregated weighted share) in supplier performance evaluations (based
on corporate responsibility on-site audit programs, EcoVadis, CDP and
conflict minerals)
78%
80%
Materials traceability
Share of suppliers that have achieved Conflict Free status, %
87%
81%
(1) The 2024 number includes 14 corporate responsibility audits from 2023, but that were reported to
Nokia during 2024.
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Reporting principles for metrics
Occupational health & safety
Incident reporting
Incident reporting is compilation of occupational health
and safety incidents occurred during 2024. These are
investigated and tracked internally by Nokia People Safety
and Security team.
Nokia has revised its fatality reporting criteria in 2023 to
include third parties such as members of the public who are
assessed as being impacted by an incident that is deemed
within Nokia’s control. This more closely aligns Nokia’s reporting
with some of its closest industry stakeholders and competitors.
Total Recordable Incident Frequency Rate (TRIFR) and Lost
Time Incident Frequency Rate (LTIFR)
Incident Frequency Rate (IFR) is an established Health & Safety
reporting practice in organisations, giving the numbers of
incidents an organisation has, as a ratio against the numbers
of hours worked in each reporting period, typically a month.
TRIFR is the number of fatalities, critical, lost time injuries,
injuries requiring treatment by a medical professional (medical
treatment), multiplying it by 1,000,000, and then dividing that
single number by the total number of employee hours worked.
LTIFR Is the number of lost time incidents (fatal, critical and lost
time injury) resulting an employee’s inability to work the next
full workday, multiplying it by 1,000,000, and then dividing that
single number by the total number of employee hours worked.
Safety tours executed and reported with senior leaders
A Senior Leader is a person accountable and in a key position
with responsibility for the delivery of our business in a safe
way, influencing positive safety behaviors of Nokia employees
and of those working on Nokia’s behalf. This person is
empowered to strengthen the Health and Safety culture in
Nokia and has the authority and control over resources to
ensure the implementation of Nokia safety standards.
Findings from Nokia in-depth corporate
responsibility supplier audits
Findings are summarized from corporate responsibility supplier
audits carried out majorly by third party auditors either directly
outsourced or via industry initiatives such as Responsible
Business Alliance and The Joint Alliance for Corporate Social
Responsibility (JAC).
Supply chain management data
Supplier coverage in Nokia’s sustainability programs
The coverage represents percentage of relevant supplier
spend covered by the respective programs of the overall
Nokia’s supplier spend.
Supplier audits and assessments
Data on audits and supplier assessments are maintained by
Nokia’s Sustainable Supply Chain team. The EcoVadis platform
is utilized in metrics related to EcoVadis assessments and
the CDP platform related to climate change management.
Responsible Business Alliance’s platform is utilized in onsite
audits related metrics.
Closure percentage of non-conformities is the simple average
of percentage closure of all audits findings. Such percentage
is calculated by dividing closed findings with total findings
identified in respective audits. These findings are for audits
conducted during initial 6 months of 2024 and 12 months
of 2023.
Health and safety
Share of relevant suppliers delivering high-risk activities:
This represents the coverage and the percentage is computed
by dividing the number of high-risk active suppliers with a
completed Supplier Maturity Assessment (SMA) with in next
review date with the total number of high-risk active suppliers.
‘H&S compliant supplier’ status:
This implies suppliers with 3 or more completed SMA scoring
and the percentage is computed by dividing the number of
high-risk active suppliers (with a completed SMA scoring≥3.00)
by total number of high-risk active suppliers with a completed
Supplier Maturity Assessment within next review date.
‘H&S Recommended or Preferred supplier’ status:
This implies suppliers with 4 or more completed SMA scoring
and the percentage is computed by dividing the number
of suppliers delivering high risk activity to meet “H&S
Recommended or Preferred supplier” status in our Health
and Safety Maturity Assessment by total suppliers.
Projects compliant with the strengthened requirements of
HRPIA process:
This metrics represents all active high-risk projects with HRPIA
fully completed and reviewed less than 1 years and are
compliance with Nokia Non-Negotiables with overall HRPIA
scoring ≥3.00.
Supplier performance evaluation
This metric is computed based on the aggregated weighted
share of supplier’s performance evaluation from corporate
responsibility audits, EcoVadis, CDP and conflict minerals
assessments. The weights are assigned on the basis of
suppliers coverage in these programs.
Share of suppliers that have achieved Conflict Free status
The indicator is based on two factors: (i) the supplier having
completed smelter identification, and (ii) all smelters reported
by the supplier being conflict-free, active in the process as per
the industry’s assurance program, or low risk for sourcing from
conflict-affected or high-risk areas.
Conflict-free sourcing information is reported through the
Responsible Minerals Initiative’s Conflict Minerals Reporting
Template (CMRT), consolidated to the Master Template and
compared against Responsible Mineral Initiative’s Responsible
Minerals Assurance Process as well as internal risk assessment
process results.
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Affected communities (ESRS S3)
Material impacts, risks and opportunities related to affected communities
The double materiality assessment indicated that freedom of expression (communities’ civil and political rights) is a material sub-topic for Nokia. The following table describes, the material impacts,
risks and opportunities as well as how Nokia manages these.
Sub-topic
Material impacts, risks and opportunities
Management
Communities’ civil and political rights:
freedom of expression
Positive impact: Enabling freedom of expression through connectivity and providing
social impact programs to help develop digital skills provide the means for communities
to fully participate in today’s digital society. This includes greater opportunity to share
opinions, enjoy their civil rights such as voting, and access diverse information and
public services more easily which further promotes informed decision-making.
Customer engagement process through sales teams and business groups.
Donations and Sponsorship committee, direct management by ESG team in cooperation
with NGO’s or customers
Nokia’s approach to determining material impacts, risks and
opportunities is described under the General information
section.
Nokia’s double materiality assessment showed that for
affected communities Nokia has a positive material impact.
Nokia delivers digital connectivity solutions that provide a
means for affected communities to freely express their
thoughts, opinions and beliefs.
Nokia considers that connectivity and the technology it
provides are a social good that can support human rights,
and it acknowledges the responsibility that comes with this.
Upholding human rights is a complex issue that covers not
only the technology Nokia provides, but also its partners
and suppliers and its own operations as well as the broader
stakeholder landscape. Therefore, Nokia strives to continuously
learn and improve, and believes that engaging with the broader
stakeholder community is the best way forward.
The main communities affected by Nokia’s operations and its
value chain are the local residents around Nokia’s own facilities
including any Indigenous peoples, and communities potentially
impacted by the build-out of the networks Nokia designs and
manufactures. Other interested parties may include Non-
governmental organizations. Affected communities could
include communities along Nokia’s value chain such as workers
in Nokia’s supply chain which is discussed under the section
‘Workers in the value chain (ESRS S2)’. In the context of double
materiality assessment, no material risks or opportunities were
identified for affected communities.
Through its networks and technology, Nokia has a positive
impact on communities as an enabler of economic
development, powering access to channels that allow the
exchange of ideas and access to information and market
opportunities, while also providing a means to uphold freedom
of expression in these communities.
Engagement with affected communities and civil society
directly contributes to Nokia build and design of its social
programs based on the real needs on the ground from the
initial planning to the final follow up and impact outcomes, as
well as with the development of the program strategy to better
respond to the most salient challenges of the communities,
their needs and opinions.
Nokia's Social Impact Program works at a global, regional and
local community level. Nokia experts may volunteer their time
and skills as appropriate to provide technology training, often
with Nokia’s customers and partners in relation to a network
rollout, to local communities or groups. This is part of ensuring
future talent development in technology disciplines.
Nokia also supports donations-based social impact programs
usually at local level with Non-Governmental Organizations.
Programs under this approach aim for a direct impact by using
technology to improve access to information, social services
and civil rights as well as improve digital and entrepreneurial
skills in targeted communities. This is exemplified by our recent
program with UNICEF in Morocco. Social programs through
technology can also provide an alternative way to develop new
business opportunities.
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Policies
Nokia has specific policies and procedural documents that
are relevant to the key affected communities it may impact.
These include Nokia’s Code of Conduct (discussed in the
section General information under ‘Policies adopted to manage
material sustainability matters’), Human Rights Policy as well
as Stakeholder Engagement Mode of Operation, which all
underline Nokia’s commitment to:
■
providing products and services that expand opportunities
to communicate and contribute directly to the exercise of
such fundamental rights as free expression, privacy, access
to information, exchange of ideas and economic
development.
■
ensuring freedom of expression or transgression of other
human rights and through human rights due diligence.
■
ensuring a systematic approach to how Nokia engages,
directly or indirectly, with different stakeholder groups
and seek their views and opinions in relation to specific
Nokia impacts.
Indigenous peoples are mentioned in Nokia’s Stakeholder
Engagement Mode of Operation and respect for their rights
are also covered by the general principles in the Nokia Code
of Conduct.
Nokia's Human Rights Policy commitments are discussed in
the General information -section under “Policies adopted to
manage material sustainability matters” and “Statement on
due diligence” As part of monitoring compliance with Nokia’s
Human Rights Policy, Nokia's Human Rights Due Diligence
(HRDD) process is used to help ensure freedom of expression.
Processes for engaging with affected
communities about impacts
Nokia is usually one or more steps removed from direct
engagement with affected communities, but it aims to ensure
that the views and needs of potentially affected communities
are considered in its business decisions. Nokia achieves this
through legitimate representatives and credible proxies such as
Non–Governmental Organizations and multistakeholder groups.
Nokia engages through relevant Non–Governmental
Organizations and other non-profit organizations with diverse
communities, for example working with UN Women on gender
topics. It collaborates with these organizations for their expertise
and direct relationships with the affected communities at
grassroots level such as our work with UNICEF and local Non–
Governmental Organizations. Nokia also implements focused
regional and country-driven programs using the expertise of
both NGOs and other partners. It obtains guidance from NGOs
for Nokia’s social impact programs, which provides insights into
the communities or regions Nokia should focus on in terms of
digital skills.
Nokia’s engagement with the Non–Governmental Organization
starts from the development of the program and continues
throughout the program via the their local office. The Vice
President Sustainability and sustainability team in the Legal,
Compliance and Sustainability function have the operational
responsibility for ensuring this engagement with the Non–
Governmental Organizations happens.
Traditionally, when Nokia’s customer implements a new network,
the customer (telecommunication operator) takes
responsibility for related community and stakeholder
engagement. The areas with lack of coverage are identified via
the operator and used by the operator as part of network
planning. The operator also takes into account the Indigenous
Peoples land use rights where applicable.
Nokia’s account teams in the business groups are accountable
for customer sales and hold the operational responsibility
for ensuring this engagement happens. Where there are
Indigenous Peoples involved (e.g, networks for Native
Americans) it is common practice to engage with the leaders of
the Indigenous peoples either directly or through an operator
depending on the sales model.
Assessing the effectiveness of Nokia’s engagement with
affected communities involves evaluating whether Nokia’s
efforts are leading to tangible positive outcomes for the
communities involved. Nokia tracks and reports outcomes
from social programs, based on data gathered from Non–
Governmental Organizations, which are also externally checked
and verified through Nokia’s relationship with Business for
Societal Impact.
Processes and channels for affected
communities to raise concerns
The processes Nokia has in place as well as the channels
available to raise concerns and have them addressed are
described in the section ‘Business Conduct (ESRS G1)’,
under ‘Reporting channels and investigations process’.
Actions
Nokia ensures that its donations and sponsorships are an
integral part of its business strategy and reflect Nokia’s
commitment to the communities in which it operates. Nokia’s
donations support the Company’s global citizenship by
implementing programs that emphasize the positive use
of digital technology and its benefits, such as access to
information, and tools to exchange ideas and express oneself
freely. Nokia has created the Nokia Donations Framework,
which provides guidance for all Nokia donations and guidelines
to ensure that donations are made in line with Nokia’s purpose
and values. Nokia Donations and Sponsorships Committee
reviews whether donations have met the framework on an
annual basis.
Nokia has implemented social impact programs over many
years that focus on digital inclusion and brings connectivity
to communities and businesses globally. These programs can
be implemented in all regions in which Nokia operates and
they particularly target the unconnected or underserved and
where possible include digital skills and technology training.
The programs generally last between 1 and 3 years.
Nokia’s corporate social responsibility activities are structured
into corporate, key regional and local programs. Our corporate-
level programs are managed by the Legal & Compliance
sustainability function in cooperation with Non–Governmental
Organizations or other partners such as customers. Key regional
and local programs have a designated person responsible for
the program locally and supporting teams as needed.
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In 2024, Nokia invested about EUR 6.5 million in communities
around the world. In March 2024, Nokia and UNICEF finalized
their 2,5-year program in Morocco. The objective of this social
innovation and entrepreneurship program was to empower
less advantaged young people (15–24 years), particularly girls,
to become resilient and increasingly productive through
self-employment and active engagement with their own
communities. During the year, Nokia also closed their pilot
program with UNICEF in Senegal. This program began in 2023
aiming to introduce digital education for students and teachers
in public schools in selected parts of the country. Through
hands-on coding activities, students were able to develop
essential skills in digital literacy, coding and problem-solving.
The trained educators can serve as digital champions,
integrating digital skills and coding into their teaching,
supporting colleagues and fostering a school-wide digital
learning culture.
In 2024 Nokia also expanded its collaboration with UN Women
empowering women through technology and skills in five
regions. In addition, Nokia University Donations program
collaborated with selected universities and academia to fund
research into open, long-term, high-impact and disruptive
discoveries solving environmental, social and governance (ESG)
challenges with 6G, AI, sensing and quantum technologies.
Nokia continues to collaborate with Non–Governmental
Organizations such as UNICEF Finland, UN Women and
community-based local organizations to implement and run
social impact initiatives, as well as industry bodies (e.g.
Responsible Business Alliance) and customers who have
direct relationships and engagement with the communities.
Targets and progress in targets
Nokia’s target reflects its commitment to provide digital
connectivity solutions and expand opportunities to
communicate contributing directly to the exercise of such
fundamental rights as free expression. The more Nokia
connects people, the greater opportunities there are for
freedom of expression. Further, Nokia has target to measure
positive impact of its technology in enabling access to
information, exchange of ideas and opportunity for economic
development. This is discussed in section Consumers and end
users (ESRS S4).
One of Nokia’s key digital inclusion targets set at the end of
2021 is to “harness Nokia’s technology, capabilities and funds
to improve the lives of 1 500 000 people through social
digitalization projects, digital skill building, and connecting
the unconnected and underserved by 2025”. These programs
can be implemented in all regions in which Nokia operates.
This target was set based on the ongoing and potential new
digital inclusion projects and estimated beneficiaries at the
beginning of the new projects. Lessons from ongoing projects in
consultation with the partner Non–Governmental Organizations
also contributed to the target setting. As Nokia engages with
affected communities either through Non–Governmental
Organizations and other non-profit organizations or customers
(telecommunication operator) Nokia did not engage directly
with affected communities when setting the target.
As a rule, the projects Nokia undertake are based on the needs
identified by the key Non–Governmental Organizations and
related to Nokia’s technology capability as well as support
resources on the ground. At the end of 2021 Nokia saw
reduced program sizes and therefore the target was set lower
than the previous one. The projects and therefore also the
target need to be related to our business where we believe we
can achieve the greatest social and/or environmental impact.
Progress in Nokia’s social impact programs is measured by
gathering data on an annual basis from the NGOs involved and
internal owners. The data is then reviewed and verified by an
external agency (Business for Societal Impact, B4SI) and Nokia
reporting responsible persons using 4-eyes review. Non–
Governmental Organizations have regular performance tracking
in place with the stakeholders and the affected communities
and this serves as an iterative process, providing information to
improve and make possible adjustments to the program work.
During 2024 Nokia reached 112 453 reported direct
beneficiaries. This is 14% less compared to 2023, and driven
partly by fewer direct beneficiaries reported from programs in
India, which is the most prominent country in terms of number
of reported direct beneficiaries overall. Additionally, the
ongoing corporate programs were focused on smaller groups
of beneficiaries thus affecting global beneficiary numbers.
The current cumulative reported direct beneficiaries is 803 987. As
a result, Nokia’s target is not expected to be achieved by 2025.
Number of reported direct beneficiaries reached through
social digitalization projects, digital skills building, and
connecting the unconnected or underserved
560 702
130 832
112 453
691 534
803 987
1 500 000
Annual result
Cumulative
2022
2023
2024
2025 target
Progress against ESG targets in 2024
Target year
Base year
Base value
Target
2024 results
Target status
S3: Affected communities
2025
2022
0
Harness Nokia technology, capabilities and
funds to improve the lives of 1 500 000
through social digitalization projects, digital
skills building, and connecting the
unconnected or underserved by 2025.
Nokia reached 112 453 reported direct
beneficiaries in 2024. Total cumulative
number of reported direct beneficiaries of
803 987 by 2024.
Not on track
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Reporting principles for Nokia Community
Investments metrics
Nokia’s underlying approach to quantifying its community
investments inputs is based on B4SI Framework, which forms
a measurement standard that any for-profit corporate entity
can apply to understand the impact their contributions make
to society.
Total value of contributions (EUR million)
Calculated as sum of cash, time, and in kind contributions
where:
■
cash contribution is the gross monetary amount a company
pays in support of a community organization/project;
■
time contribution is the cost to the company of the paid
working hours contributed by employees to a community
organization or activity (e.g., employee volunteering, active
participation in fundraising activities, longer-term
secondments to community organizations);
■
in-kind contributions are other non-cash resources to
community activities and can include donations of the
company’s product or services or other corporate resources
such as IT equipment, used furniture, meeting rooms or
other spaces.
Number of reported direct beneficiaries
Total number of individual beneficiaries reached via Nokia’s
Community investment activities under key thematic pillars
“Increasing digital inclusion that provides access to opportunity
(education, health, employment)” and “Inclusion, equity &
diversity” in Nokia’s donation framework.
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Consumers and end users (ESRS S4)
Material impacts, risks and opportunities related to consumers and end-users
The double materiality assessment indicated that access to quality information and freedom of expression (information-related impacts for consumers and/or end-users) are material sub-topics
for Nokia. The following table describes the material impacts, risks and opportunities and how Nokia manages those impacts, risks and opportunities.
Sub-topic
Material impacts, risks and opportunities
Management
Information-related impacts for consumers
and/or end-users: access to (quality)
information
Positive impact: Nokia’s technology enables connectivity and the resulting
positive impact related to access to information, exchange of ideas and
opportunity for economic development
Customer engagement process through sales teams and business groups.
Donations and Sponsorship committee, direct management by ESG team in
cooperation with NGO’s or customers.
Information-related impacts for consumers
and/or end-users: freedom of expression
Positive impact: Enabling freedom of expression through connectivity allows
consumers and end-users to share opinions, access diverse information and
public services which further promotes informed decision-making.
Human Rights Due Diligence (HRDD) process as a component of the sales process
which encompasses various compliance topics. Oversight by the Nokia HRDD council
with Global Leadership Team (GLT) members.
Nokia’s approach to determining material impacts, risks and
opportunities is described under the ‘General information’
section.
In terms of positive impact, providing connectivity solutions,
digital technology and digital skills programs affords individual
consumers the opportunity, sometimes for the first time,
to exercise their rights to access basic services, and better
healthcare options, engage in social discourse and even explore
the job market. Some examples of Nokia’s connectivity
solutions include:
■
an optical, IP and fiber broadband network deployed in the
Amazon rainforest connects the unconnected communities
to multi-gigabit broadband access.
■
Nokia’s Rural Connect solution delivers high-speed internet
to areas where it is difficult to deploy fiber infrastructure
and enables service providers to offer affordable, high-
speed broadband without the need for extensive on-the-
ground infrastructure.
There are many positive outcomes of connectivity as described
in section Affected Communities (ESRS S3).
Nokia sells its network infrastructure solutions to
Communication Service Providers (CSPs i.e. telecommunication
operators), cities and authorities and vertical industries/
enterprises including mining, oil and gas, agriculture,
manufacturing, logistics, and defense sectors. Those products
are sold directly to CSP’s and via system integrators or other
third-party companies to enterprise market customers.
Nokia does not sell its products directly to consumers.
Policies
Nokia’s Code of Conduct (discussed in the section General
information, under “Policies adopted to manage material
sustainability matters”) and Human Rights Policy show Nokia’s
commitment to ensuring the technology it delivers supports
freedom of expression rather than hindering it. Nokia’s robust
Human Rights Due Diligence (HRDD) process further aims to
minimize the risk of violation of freedom of expression to
consumers and end users through the potential misuse of
Nokia technology. Nokia’s Human Rights Due Diligence (HRDD)
process is a non-commercial cross-company investigative
process. This process is pre-emptive and rigorous; it is used
before any sale is done, while also attempting to ensure
compliance with Nokia’s Human Rights Policy.
Nokia's human rights policy commitments are discussed in
the General information -section under “Policies adopted to
manage material sustainability matters” and “Statement on
due diligence”.
Nokia Stakeholder Engagement Mode of Operation
standard operating procedure provides employees with an
understanding of the operational engagement work of Nokia in
ESG .This includes detailing of roles and responsibilities, key
stakeholders, cross-functional team involvement, reporting
and trainings. In accordance with the Nokia policies, the Mode
of Operation document is owned and maintained by the
sustainability team in the Legal, Compliance and Sustainability
function The Mode of Operation document is only for internal
use. Common areas or cross-functional activities with other
units and business groups are listed in this document. The
identified material positive impacts reflect Nokia’s core
business of connectivity, networks and digitalization.
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Processes for engaging with consumers
and end-users about impacts
Nokia’s end users are communication service providers
and enterprise customers, and therefore regular customer
engagement processes apply. Nokia’s account teams in
business groups are accountable for customer sales and hold the
operational responsibility for ensuring this engagement happens.
Nokia does not have direct engagement with consumers as it rarely
operates the networks, but rather enables the communication
service provider to offer consumer and end-user services over
the network equipment Nokia supplies to them.
When a customer implements a new network, the customer
(telecommunication operator) takes responsibility for related
community and stakeholder engagement. There may be rare
exceptions to this, in particular in Asia, where Nokia has taken
some responsibilities related to stakeholder engagement e.g.,
site certifications and keeping the local community informed.
The operator identifies the areas with lack of coverage and
uses this information as part of network planning. Nokia
customer account teams work through the customers who
have direct relationships to the communities and consumers.
Nokia collaborates with organizations, such as the Global
Network Initiative, to help ensure the positive impact of
technology on consumers.Nokia engages with other NGO's
which is discussed in section Affected Communities (ESRS S3).
Processes and channels for consumers and
end-users to raise concerns
The processes and the channels available to raise concerns and
have them addressed are described in the section G1 Business
Conduct, under ‘Reporting channels and investigations
process’.
Actions
Nokia carries out Human Rights due diligence process to help
ensure freedom of expression by limiting the potential for
misuse of its products. Human rights due diligence actions are
applied globally across Nokia and may impact customers, end
users, consumers and Indigenous populations. This can lead
to potential adjustments to products where needed. This
supports the communication service provider in enabling
freedom of expression for the end users and consumers who
use their services.
For social programs Nokia implements connectivity and digital
skill programs through NGOs and other partner organizations.
These programs can be implemented in all seven regions where
Nokia operates. Examples of Nokia’s social programs are
described in the section Affected Communities (ESRS S3)
under ‘Actions’.
Targets and progress in targets
In line with its long-term goal, Nokia works with its customers
to enable broadband-based digital services through Nokia’s
technology solutions over ever-more subscriptions, further
bridging the digital divide and connecting the unconnected.
Nokia also contributes to improving digital skills which,
combined with greater connectivity, enable more inclusive
access to healthcare, education and employment for individuals
and provide the opportunity to participate in the digital
economy for small businesses. As described in Affected
Communities (ESRS S3) Nokia also has a target reflecting its
commitment to providing digital connectivity solutions and
expand opportunities to communicate thus contributing
directly to the exercise of such fundamental rights as free
expression.
To measure this impact Nokia has set a target '’Helping our
customers to connect the next 2 billion measured by the
number of subscriptions in Nokia radio customers’ networks
by 2030” (base year 2021).
The target was set based on the successful achievement of
Nokia’s previous connectivity target. Nokia reports on the
number of mobile broadband subscriptions as a more
measurable and reliable number than connected people, as one
subscription can connect more than one person. As this is a
target based on mobile broadband subscriptions and operator
subscriptions being reported through the GSMA (the mobile
operators association), there was no engagement directly with
consumers in setting this target.
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The digital divide often means there is a lack of access to
broadband internet (or various reasons such as availability
and affordability). With Nokia’s Fiber-to-the-Home technology
(FTTH), Nokia helps operators connect even more people to
broadband. Nokia has set a second target, related to its Fiber-
to-the-Home technology, ‘to connect 140 million new subscribers
by 2030’ (base year 2023). With this metric Nokia tracks how
many Fiber-to-the-Home users worldwide are using a PON
infrastructure delivered by Nokia for their broadband services.
In the process of setting this target Nokia estimated its
potential contribution to connecting extra people to the
internet using Fiber-to-the-Home technology based on
market-leading industry analyst reports. Performance against
the target is checked twice a year by tracking Nokia Fiber-to-
the-Home connected end-users.
Nokia is on track with its progress to reach the target of
2 billion additional subscriptions. In 2024, the number of
mobile broadband subscriptions in Nokia radio customers’
networks increased by 349 million.
Growth in Fiber-to-the-Home users in 2024 beat analyst
expectations and Nokia has connected 39 million fiber-to-the-
home subscribers since the beginning of 2023. Nokia is well on
track to connect 140 million Fiber-to-the-Home subscribers
though its networks by 2030.
Reporting principles for metrics
Progress for the target: “Helping our customers to connect the
next 2 billion measured by number of subscriptions in Nokia
radio customers’ networks by 2030” is tracked annually using
data from the GSMA (GSM Association), a global association
of mobile network operators. The target is on track, with an
average yearly increase of over 223 million subscriptions.
Calculation methodology for the metric:
■
Yearly Mobile Networks mobile broadband connections
growth = Difference of absolute number of Mobile Networks
mobile broadband connections between two years.
Calculation methodology for metric: Nokia’s Fiber-to-the-Home
technology will connect 140 million new subscribers by 2030,
helping break down the digital divide
■
Growth of Nokia FTTH broadband connections = Sum of
"Growth of connected FTTH users per year * "Nokia market
share". Result incorporates both actual and forecast data
from iDate market analyst report.
Progress against ESG targets in 2024
Target year
Base year
Base value
Target
2024 results
Target status
S4: Consumers and end-users
2030
2021
0
Helping our customers to connect the next 2
billion measured by number of subscriptions
in Nokia radio customers’ networks by 2030.
The number of mobile broadband
subscriptions in Nokia radio customers’
networks increased during 2024 by
349 million. Progress to reach the target of
2 billion additional subscriptions
2021-2024: 1 121 million
On track
2030
2023
0
Nokia’s Fiber-to-the-Home technology to
connect 140 million new subscribers by 2030,
helping break down the digital divide.
Nokia has connected 39 million Fiber-to-the-
Home subscribers since the beginning of
2023.
On track
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Governance
information
Business conduct (ESRS G1)
169
Business conduct (ESRS G1)
Management of business conduct
Strong culture of integrity
Nokia is consistently recognized as one of the World’s Most
Ethical Companies by Ethisphere. Nokia has a strong culture of
integrity, which is driven by the Nokia Code of Conduct, the
essentials of being open, fearless, and empowered, high ethical
standards, effective controls, and employee empowerment to
raise concerns without fear of retaliation. Nokia’s commitment
to integrity applies to everyone in the company, regardless of
function or level. Nokia expects its employees to follow laws,
policies, and processes and to speak up about suspected
misconduct. Nokia holds employees accountable for
unethical behavior.
The Code of Conduct also has a section that outlines leader
and manager expectations for cultivating Nokia’s culture of
integrity within their respective organizations. Many resources
are available to educate managers about these responsibilities
and to facilitate manager discussions with team members
about compliance risks. Nokia measures the level of manager
engagement via an annual survey.
Nokia’s corporate culture of integrity is supported by its
comprehensive compliance training program, including its
annual mandatory “Ethical Business Training” course. The
topics within the mandatory training program are rotated every
year to raise awareness on high-risk areas, emerging risks,
and hot topics.
Nokia’s approach to creating a culture of integrity helps to
ensure that employees do not engage in unlawful or unethical
behavior, and mitigates risks related to anti-corruption,
competition, bribery, fraud, money laundering, privacy and data
protection, human rights and other high-risk areas. This is
achieved by providing training and awareness materials and
clarifying Nokia’s expectation that employees follow the
applicable laws, policies and processes. Employees who engage
in unlawful or unethical behavior are disciplined, up to and
including termination of employment.
Compliance Program governance
Nokia’s strong culture of integrity is supported by its Ethics and
Regulatory Compliance team, comprised of approximately 50
experienced compliance professionals, which is led by the Chief
Compliance Officer, who reports to the Chief Legal Officer.
The Ethics and Regulatory Compliance team members hold
an average of 18 years of compliance experience, with its
members located in 19 countries and speaking a total of
21 languages. The Ethics and Regulatory Compliance team has
functional experience in law, compliance, business, accounting,
finance, audits, privacy, regulation, and other areas. The team
includes several distinct functions, including regional and
business-specific compliance leaders, a risk assessment
function and a global team of dedicated investigators
(independent from Nokia’s business units to ensure utmost
objectivity, discreteness and confidentiality). This organization
is responsible for compliance concerns that are reported to
Nokia. The organization also includes an Anti-Corruption Center
of Excellence. The Anti-Corruption Center of Excellence is
responsible for conducting due diligence of commercial third
parties, customers, and high risk suppliers and oversees the
due diligence of high-risk transactions. It is also responsible for
Nokia’s global Anti-Corruption Program, which includes policies
and processes, controls, and training.
The Chief Compliance Officer has direct access to the Audit
Committee of the Board, which provides oversight of Nokia’s
Compliance Program. The Chief Compliance Officer meets at
least quarterly with the Audit Committee and as needed based
on specific matters. The Chief Compliance Officer also meets
at least annually with the full Board of Directors.
Fair competition and compliance with competition rules are an
integral part of Nokia’s way of doing business regardless of
geography. Responsibility for compliance with competition
laws rests with all Nokia employees, who are expected to know
how competition laws may impact their work. Nokia’s Fair
Competition Policy covers competitive coordination and
exchange of information, competition-restrictive agreements
with customers or suppliers, abuse of dominance, and
reporting channels. An intranet page dedicated to fair
competition provides practical guidance, dos and don’ts on
a series of topics through practical scenarios (e.g. industry
initiatives, bidding consortiums, multiple bidding, information
sharing, cooperation agreements, no-poach, denigration,
exclusivity and resale price maintenance), links to related
training videos, and an Ethics Helpline link for concern reporting.
There are various trainings available for employees; for
example, training when attending trade conferences and
industry events; targeted training for sales teams; and live
training sessions with relevant audiences.
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Material impacts, risks and opportunities related to business conduct
The double materiality assessment indicated that corporate culture and the management of relationships with suppliers, including payment practices and corruption and the prevention and
detection of corruption and bribery are material sub-topics for Nokia. Nokia’s approach to determining material impacts, risks and opportunities is described under the ‘General information’ section.
The following table describes the material impacts, risks and opportunities and how Nokia manages these.
Corporate culture
Impact (positive): Corporate culture prioritizing sustainability can lead to responsible
and sustainable decision-making throughout the value chain.
Opportunity: Nokia is consistently recognized as one of the World’s Most Ethical
Companies by Ethisphere. Nokia’s strong ethical corporate culture provides a
foundation to engage in business ethically and legally.
Risk: Breach of Nokia’s Code of Conduct or the law in regard to compliance areas
leading to negative financial or reputational consequences.
Nokia nurtures, promotes, and evaluates its compliance culture using varied mediums. It uses
multiple feedback channels, discussions, and training to drive and enhance the culture of
continuous improvement in Nokia’s Compliance Program. Nokia gauges employee attitudes,
perceptions, and experiences regarding the existing compliance culture using survey results and
other collected inputs. These results are shared with relevant business/regional teams, managed
through mitigation plans, and integrated into the annual risk assessment and communications
process for the ongoing management of Nokia’s ethical culture.
Management of relationship
with suppliers including
payment practices
Opportunity: Building trusted relationships and long-term partnerships with suppliers
who share Nokia’s culture of ethics and compliance.
Nokia builds and fosters long-term relationships with suppliers that deliver a high impact on
Nokia’s brand, portfolio and business performance. With a holistic management of its supplier
relationships, Nokia aims to maximize the value of the collaboration.
Corruption and bribery:
prevention and detection of
bribery
Opportunity: Nokia is consistently recognized as one of the World’s Most Ethical
Companies by Ethisphere. Nokia’s strong ethical corporate culture provides a
foundation to engage in business ethically and legally.
Nokia’s robust Anti-Corruption Program is a key factor in helping to ensure compliance with
global laws.
The program consists of various elements, including:
■
Nokia’s Code of Conduct covering topics such as anti-corruption and bribery, dealing with
government officials, improper payments, working with third parties , controllership, and
speaking up (Nokia’s whistleblower program).
■
The Nokia Third-Party Code of Conduct, which includes a section on anti-corruption, covers
Nokia’s expectations for operating with integrity and in compliance with all applicable laws.
■
Training specific to anti-corruption and bribery risks, which is included in Nokia’s annual
mandatory Ethical Business Training course and is required of all employees.
■
Targeted training on anti-corruption and bribery risks that is assigned to high-risk employee
populations, such as employees involved in projects requiring site acquisition and customer-
facing sales teams.
■
Various policies on Nokia’s intranet site that support the Anti-Corruption Program, available to
all employees.
Sub-topic
Material impacts, risks and opportunities
Management
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Nokia’s strong culture of integrity helps it avoid unlawful
behavior and unethical acts by its employees or by third parties
with which Nokia does business. With respect to anti-corruption
and bribery, the key risk is that a rogue employee or a third
party with which Nokia does business (primarily high-risk
suppliers or commercial third parties) engages in behavior that
violates Nokia’s anti-corruption policies and/or applicable laws
or fails to comply with or circumvents one of Nokia’s anti-
corruption processes or control points. Potential violations
of anti-corruption laws may result in investigations; and if a
violation is substantiated, the results may include reputational
damage, fines and forfeiture awards, and potential criminal
action against individuals involved as well as against those who
should have been aware that a violation was occurring. Nokia
strives to stay abreast of geopolitical changes, business models
and strategies that may increase the risk of corruption, such as
planned expansion in a high-risk market or segment. As these
are identified, the Compliance organization works closely with
the business to develop risk mitigants proactively to minimize
residual risk. These efforts may include targeted and focused
training, the implementation of additional control points and
processes, and increased review and monitoring.
Anti-corruption and bribery risks can exist in many aspects of
our operations, including certain go-to-market sales models
and in project delivery and execution. To effectively mitigate
these risks, the Compliance organization has compliance
professionals who partner closely with various parts of our
business. Through this collaboration, the Compliance
organization is able to proactively manage these changing
risks by continually evolving the Anti-Corruption Compliance
Framework and Program. Business activity presents risk with
respect to the possibility of third parties engaging in violations
of anti-corruption laws. The third parties with the highest risk
include certain high-risk suppliers (those dealing in customs,
site acquisition work, or other engagements with governmental
agencies) and commercial third parties (distributors, resellers
and indirect resellers). To mitigate this risk, Nokia provides
training to those third parties with the highest risk and
requires annual compliance acknowledgments as well as
acknowledgment of Nokia’s Third-Party Code of Conduct.
These actions, as well as clear contractual provisions including
compliance with laws, are designed to ensure that Nokia’s third
parties understand its expectations for compliant behavior.
In addition, suppliers and commercial third parties must
successfully complete a risk-based due diligence vetting
process. This vetting process often results in approval with risk
mitigants, such as periodic review of transactions, additional
contractual terms, or monitoring. Commercial third parties
receive quarterly newsletters that include compliance sections
to remind them of Nokia’s expectations for compliant behavior.
Business conduct policies and corporate
culture
Nokia’s clear and readily accessible policies and standard
operating procedures (SOPs) guide our employees on how to
behave and mitigate the risk of unlawful or unethical behavior.
These policies and SOPs are included in the ‘General
information’ section.
Employees and third parties that fail to behave ethically and
lawfully are held accountable. A dedicated intranet page
provides an overview of company level policies and SOPs.
The available policies are aligned with all business groups and
corporate functions and are disseminated to employees in
several ways, including:
■
Training programs, both online and live; online training
typically includes quiz questions to test comprehension.
■
The central repository on the company intranet, accessible
by employees.
■
Quarterly communications from the Chief Compliance
Officer as well as compliance communications for specific
regions and business groups.
■
The Ethics and Regulatory Compliance intranet site and
relevant policies provide examples of conduct and address
the importance of compliance both for Nokia and the
individual employee.
Nokia’s policy framework begins with the Nokia Code of
Conduct, which includes the company’s basic principles of
business conduct and high-level policy statements related to
critical business topics. Policy documents further define,
support and explain specific areas of focus. SOPs are created,
where needed, to instruct employees on specific procedures
to implement the policies. Finally, supplemental guidelines (e.g.,
country-specific guidance) or other training materials may be
created for specific implementation of certain procedures.
Respective policy/subject matter experts are responsible for
ensuring that Nokia’s policies and procedures remain up to
date and in accordance with applicable laws and regulations in
all countries where Nokia operates. The full set of supporting
policies and related procedures for the Code of Conduct’s risk
areas are available online to Nokia’s employees.
Nokia’s Code of Conduct is available in a web-based format
in 20 languages. It enforces Nokia’s values and expectations,
outlines Nokia’s 14 key compliance policy statements and
unites all Nokia employees around a common vision. The Code
serves as a guiding framework that provides clarity and
consistency in decision making and defines the principles of
ethical and compliant business practices that all employees and
managers are expected to follow. Everyone in the company is
required to review and acknowledge the Code annually as part
of mandatory compliance training.
A separate Code of Ethics is in place for Nokia’s President and
CEO, Nokia’s Chief Financial Officer, and Nokia’s Corporate
Controller. The purpose of the Code of Ethics is to reinforce
ethical behavior, promote high standards of corporate
governance, and highlight the additional responsibilities of
these functions. It complements Nokia’s Code of Conduct
and Insider Trading Policy as well as other applicable
company guidelines.
Nokia’s Third-Party Code of Conduct requires Nokia’s third-
party business partners to follow similar ethical practices to
those included in Nokia’s Code of Conduct.
Nokia nurtures, promotes and evaluates its compliance culture
using varied mediums. It uses multiple feedback channels,
discussions and training courses to drive continuous
improvement in Nokia’s Compliance Program. Nokia gauges
employee attitudes, perceptions, and experiences regarding
the compliance culture using survey results and other collected
inputs. These results are shared with relevant business/
regional teams, managed through mitigation plans, and
integrated into the annual risk assessment and communications
process for ongoing management of Nokia’s ethical culture.
Beyond a company-wide survey, Nokia also uses other means
to gauge the effectiveness of our Compliance Program,
including short pulse surveys on specific topics for more
frequent feedback on the overall climate in the company as it
relates to Nokia’s essentials of open, fearless, and empowered.
As an example, Nokia’s 2024 mandatory Ethical Business
Training course integrated anonymous questions related to
fear of retaliation, usage of Nokia’s Code of Conduct, reporting
concerns, specific policies, and line manager engagement.
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The 2024 survey showed that 83% of employees report to a line
manager who discusses ethics and compliance with their team.
Below are some of the resources, platforms and methods that
Nokia uses to regularly reinforce its culture of doing business
with integrity:
■
Nokia Code of Conduct
■
Line manager internal posts and news articles
■
Social media posts from subject matter topical experts,
Nokia’s Chief Compliance Officer and other senior leaders
■
Internal news articles with topic-related links and resources
■
Awareness campaigns and resources (i.e. speaking up and
anti-retaliation)
■
Ombuds program, dedicated resources, and campaigns
■
Dedicated web pages for Compliance Program elements
with related resource documents and contacts
■
Quarterly newsletter
■
Animations, videos, posters, brochures
■
Annual Integrity Day event: senior leader/GLT participation
and web event, local events around the world, global-level
and local messaging, compliance awards, compliance games
Refer to the ‘General information’ section for all Compliance
Program policies.
Reporting channels and investigations process
Nokia offers multiple channels to report compliance concerns,
including reaching out to the Legal, Compliance and
Sustainability function; Ombuds leaders; the People
organization; a dedicated email address; and an Ethics Helpline,
which is compliant with the EU Whistleblower Directive, that
offers multiple options to report concerns, including an online
portal and country-specific options. Nokia has internal and
external web pages dedicated to concern reporting and
whistleblowing resources. The internal reporting web page
explains the reporting process and provides links and
information about all the available reporting options.
The Ethics Helpline allows for anonymous reporting and is
open to employees and external stakeholders. Nokia aims
to respond to and investigate all concerns promptly and
establish remediation plans as needed.
In addition to the Nokia Ethics Helpline and/or consulting with
the Legal, Compliance and Sustainability team, the People
organization, or line mangers, Nokia’s Ombuds network is a
critical element of Nokia’s Compliance Program. Ombuds
leaders sit outside of the Legal, Compliance and Sustainability
team, and People organization and serve as confidential,
neutral, supplemental resources for employees to raise
compliance questions, concerns and requests for guidance.
They expand the reach of Nokia’s Compliance Program and
provide another means to report suspected policy and law
violations as well as assist in preventing, detecting, and
addressing wrongdoing. Local Ombuds actively promote the
program ensuring that employees are aware of the multiple
channels available for reporting concerns and encouraging
employees to voice their concerns without fear of retaliation.
At the end of 2024, Nokia had 217 Ombuds leaders around the
world, and 80 percent of Nokia’s employees worked in locations
with an on-site Ombuds leader. It is important to note that the
full Ombuds network is available to support all employees
globally and is not restricted to employees within their
respective location and/or organization.
The Ethics and Regulatory Compliance Investigations Group is
primarily responsible for managing the intake of all compliance
concerns in the company across multiple channels, as well as
case assignment, investigation, closure, and follow-up with
respect to remediation and discipline. Nokia’s team of
dedicated investigators, which sits centrally within the Ethics
and Regulatory Compliance function, is not attached to any
particular business group or function and reports into Legal
Compliance and Sustainability leadership. The investigator of
any matter is fully independent of the chain of management
of the alleged subject and the individual raising the concern.
In 2024, Nokia's Investigations Group received a total of
923 concerns, of which 384 were integrity concerns and
investigated by the Investigations Group as suspected
violations of Nokia’s Code of Conduct. In 2024, the
Investigations Group closed 397 investigations into alleged
violations of Nokia’s Code of Conduct, of which 165 were
substantiated with cause found after investigation. Nokia
implemented corrective actions including 12 dismissals and
30 written warnings. Beyond individual discipline, detailed root
cause analysis was conducted for substantiated cases, and
unsubstantiated cases as appropriate, to identify, implement
and monitor remedial measures and improvements.
Nokia integrates its investigation process into its corporate
culture by regularly communicating major findings and trends
in a transparent fashion and raising awareness about the
reporting process and the importance of speaking up. Regular
read-outs about investigation statistics, key findings, and
trends are provided to several internal groups, including
regional/business group compliance leaders, who include
investigations findings in the reporting for their respective
jurisdictions and share this information with business leadership
several times per year; Ombuds leaders, who share this type of
information with employees in local awareness sessions; and
senior management as well as the Board of Directors and
external auditors. Global trends and anonymized real cases are
shared with all employees in Nokia’s internal quarterly company-
wide Ethics and Regulatory Compliance newsletter (“Integrity
Matters”), and annual investigation statistics by category as well
as links to anonymized case examples are provided externally.
Each quarter, the Chief Compliance Officer updates the Audit
Committee regarding significant allegations and outcomes of
investigations and once per year reports this information to the
Board and the Group Leadership Team.
Protecting against retaliation
Nokia has always positioned itself as a company committed to
combating and avoiding all forms of retaliation and maintaining
a culture in which its employees and partners feel comfortable
raising concerns about suspected violations of Nokia’s Code of
Conduct and policies, or applicable laws or regulations. Nokia
will not tolerate any adverse treatment of an employee or
partner (to the extent reasonably within Nokia’s control for a
non-employee) who raises a concern in good faith or provides
evidence in support of such a concern. Any employee who
retaliates or participates in retaliating against another
employee for raising a compliance concern or for assisting in
an investigation will be subject to strict discipline, up to and
including termination of employment.
In a clear, widely-disseminated and readily-accessible manner,
Nokia provides employees with many avenues to report
concerns as well as resource documents and information on
external reporting channels. This includes region- and location-
specific external reporting options. Annual comprehensive
campaigns (consisting of various training initiatives, media and
communications) remind and train employees on reporting
concerns, available resources, and Nokia’s anti-retaliation
policy. Managers are provided additional resources, including a
checklist, for handling concern reporting. A dedicated internal
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web page on retaliation provides employees with valuable
resource information and guidance, including employee and
manager anti-retaliation guides.
Training
The Ethics and Regulatory Compliance organization maintains
a three-year strategic approach and roadmap for training.
Nokia’s Ethical Business Training course is updated every year
and required annually for all employees. It was one of the two
mandatory, web-based training courses deployed in the
mandatory 2024 curriculum, with the other module covering
information security. The Ethical Business Training course
included a review and acknowledgment of Nokia’s Code of
Conduct and the related 14 policy areas; a requirement to
declare potential conflicts of interest; and short reviews of key
topics including privacy, conflicts of interest, financial controls,
trade compliance, external communications, and ESG. In 2024,
98% (target 95%) of Nokia’s employees completed the Ethical
Business Training module. New employees are assigned a new-
hire training curriculum that includes the current annual
mandatory training curriculum.
In 2024, Nokia also provided training (online and in-person)
and communications on emerging risks along with important
reminders about roles and responsibilities:
1. Just-in-time training videos to provide information at the
time most needed, triggered by specific employee
requests or actions (e.g., employees who obtain pre-
approval to travel to a trade show or conference are
required to take a three-minute training module on fair
competition).
2. Risk-specific training and communications on privacy, anti-
corruption, competition law, site permitting, and Nokia’s
indirect sales process.
3. Anti-retaliation awareness messaging and resources to
heighten awareness of potential retaliatory behaviors and
available support channels.
4. Two new animations about the Ombuds program.
5. A new micro-learning to emphasize the importance of
bystander reporting.
These resources were supplemented by live training sessions
delivered to target audiences on various compliance topics
throughout the year.
Nokia opportunity: Anti-Corruption and Anti-Bribery Program
Nokia has a robust Anti-Corruption Program that focuses on identifying and mitigating compliance risks associated with
third parties and multi-layer transactions as well as geopolitical events that may pose a risk under applicable laws,
including anti-corruption.
Nokia’s Global Anti-Corruption Program
Nokia’s Code of Conduct
Policies supporting the anti-corruption program
Covers the following topics:
■
Dealing with Government Officials
■
Improper Payments
■
Working with Third Parties
■
Controllership
■
Speaking up (our whistleblowing program)
Various policies are available to all employees on Nokia’s
intranet site, including the following:
■
Anti-Corruption Policy
■
Conflict of Interest Policy
■
No PO/No Pay Policy
■
Travel Policy
■
Dealing with Government Officials contained in our
Code of Conduct: See ‘Code of Conduct’ in General
information section
■
Controllership contained in our Code of Conduct: See
‘Code of Conduct’ in General information section
■
Working With Third Parties contained in our Code of
Conduct: See ‘Code of Conduct’ in General information
section
■
Improper payments contained in our Code of Conduct:
See ‘Code of Conduct’ in General information section
■
Corporate Hospitality and Gift SOP
■
Global Donations, Other Contributions and
Sponsorships SOP
■
Third-Party Risk Management SOP
■
Prohibition of Facilitation Payments SOP
■
Site Acquisition Permitting and Site Access Fees SOP
Third party code of conduct
■
Includes Nokia’s expectation relating to anti-
corruption and bribery
Training specific to anti-corruption and bribery
■
Included in Nokia’s annual mandatory Ethical Business
Training required of all employees
■
Focused training on anti-corruption and bribery
that is assigned to high-risk employee populations,
such as training for employees involved in projects
requiring site acquisition and customer-facing
sales teams.
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Nokia also has monitoring processes in place to identify
possible process gaps, including: monitoring our customer
relationship management and deal opportunity tool to ensure
in scope commercial third parties have been screened by
Nokia’s Anti-Corruption Center of Excellence; monitoring
expense reimbursement claims relating to hospitality to third
parties to ensure that the gifts, travel and entertainment
(‘GTE’) pre-approval process was followed; reviewing spend
reports to ensure that any high-risk suppliers have been vetted
at the appropriate due diligence level; conducting risk-based
due diligence on all third parties to identify any red flags or risk
before engaging in business with them, with a three-year re-
screening required; and managing any concerns that are raised
relating to improper payments through Nokia’s whistleblower
system, as described in the ‘Reporting channels and
investigations process’ section.
The groups of employees deemed to be highest risk with
respect to Nokia’s business include: sales and pre-sales
employees, who have customer-facing roles and work to bring
in sales opportunities; employees working with government
officials (including those that seek permits and licenses from
government agencies) as interactions with government officials
bring higher risks; employees involved in site acquisition and
site access permitting when delivering projects as this may
involve interaction and/or payment to government officials;
employees involved with customs clearance and logistics
vendors as this may also involve payment to government
officials; employees involved with tax advisors and related
services as these involve payments and negotiations with
government officials; the Government Affairs team and the
Finance team as it has a key controllership role to ensure that
our books and records are reflected accurately.
Training specific to anti-corruption and bribery is included in
Nokia’s annual, mandatory Ethical Business Training course and
is required of 100% of Nokia employees: all administrative,
management and supervisory bodies. Anti-corruption is
highlighted in this course given the potential high-risk exposure
and is rolled out not only to all employees but also to Nokia’s
Board of Directors. Nokia also has a separate standalone
course that focuses on corruption risk and speak-up channels.
Refer to the ‘General information’ section for more information
on compliance policies.
All suspected breaches in procedures and standards of anti-
corruption and anti-bribery are investigated. When an
investigation concludes that there has been a violation of
Nokia’s policies, including Nokia’s Anti-Corruption and Anti-
Bribery policy, appropriate disciplinary action is taken. Such
actions may include financial loss, termination, demotion or
role change, a written warning, and/or mandatory training.
Nokia’s Anti-Corruption Center of Excellence has a
comprehensive, multifaceted, risk-based approach to help
identify and mitigate risks to the company while empowering
Nokia’s business teams to sell Nokia products and services in
responsible fashion around the globe.
Management of supplier relationships
Nokia’s supply chain is a critical component of Nokia’s own
reputation and extended impact. Nokia works with both
customers and suppliers to drive transparency, sustainability
and good ethical business practices in Nokia’s deep and often
complex supply chain.
Nokia works with its suppliers to develop, innovate and build
capability to enable a more sustainable and transparent
ecosystem.
In 2024, Nokia conducted business with around 9 300 suppliers,
and 80% of Nokia’s total supplier spend was distributed across
around 400 suppliers.
Nokia’s supplier requirements
Nokia applies sustainability criteria for the qualification and
selection of its suppliers and requires the fulfillment of
sustainability obligations through its supplier contacts.
Nokia expects its suppliers to adhere to its Third-Party Code of
Conduct and provides them with Nokia Supplier Requirements,
including the Responsible Business Alliance’s Code of Conduct
and additional, Nokia-specific sustainability requirements. The
requirements cover topics such as the environment, health and
safety, security and privacy, risk management, labor and human
rights management, and ethics and anti-corruption. They are
communicated to Nokia’s suppliers and integrated into Nokia’s
contractual requirements.
Nokia requires its Tier 1 suppliers (including Nokia’s final
assembly, materials and services suppliers) to apply and
cascade the same requirements down to their own suppliers
and to conduct due diligence (included within Nokia Supplier
Requirements). Transparency and compliance requirements
are firmly applied to all supplier relationships, and gifts or
entertainment are neither given nor received beyond nominal
value items. Nokia investigates and qualifies all suppliers,
requiring them to comply with all applicable laws and
regulations, and demonstrate that they share the values stated
in the Nokia Code of Conduct. Requirements related to ethics
and anti-corruption for Nokia’s suppliers are detailed in the
Nokia Third-Party Code of Conduct.
Monitoring, assessment and auditing
Nokia’s key supplier-related monitoring, assessment and
auditing activities include an on-site corporate responsibility
audit program, EcoVadis sustainability assessments, Nokia’s in-
house Supplier Health and Safety Maturity Assessment, and the
CDP Supply Chain Climate Change and Supply Chain Water
Security assessments. For more information, see the section
‘Workers in the value chain (ESRS S2).
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Managing risk and opportunity in Nokia’s supply chain
Nokia’s internal analysis and enterprise risk management
process help identify its potential supply chain risks. Nokia
carries out more in-depth analyses to determine all supply
chain risks via its dedicated Supplier Sustainability Risk
Dashboard, where it looks at various sustainability risks,
commodity risks and more, on a supplier location level. The
outcomes are included in Nokia’s category strategies, which it
reviews annually with its purchasing category leads. Failing to
meet established sustainability requirements will impact the
future business perspective of the supplier.
Nokia prioritizes long-term relationships with suppliers who
significantly impact its brand, portfolio, and business
outcomes. By managing these partnerships with a
comprehensive approach, Nokia aims to maximize the benefits
of the collaboration.
Payment practices for suppliers
Nokia treats its business partners with respect and always
endeavors to pay its suppliers’ valid dues on time as per
contractual obligations and country regulations. Suppliers need
to follow defined guidelines for correct and timely invoice
submission. E-invoicing is set up as a mandatory or preferred
method of invoice receiving in all countries where it is
legally allowed.
Nokia’s standard payment terms are 90 days at the minimum,
plus days for invoice receipt and for periodic payment cycle as
per the respective supplier contracts. Those with payment
term of 90 days or more encompass approximately 62% of the
annual invoices by value in 2024.
For the balance 38% of the supplier invoices (including small
and medium enterprises), payment terms are based on
respective contractual negotiations and/or country legislation.
Actions
Actions taken to support Nokia’s Compliance Program and
culture:
1. Everyone in the company is required to review and
acknowledge the Nokia Code of Conduct annually and
disclose any conflicts of interest as part of annual
mandatory Ethical Business compliance training. The
topics within the mandatory training are rotated every
year to spread awareness on high-risk areas, emerging
risks, and hot topics. Anti-corruption is highlighted in the
same course because it is a high-risk area, and Nokia also
has a separate standalone course that focuses on
corruption risk and speak-up channels. In addition to
annual mandatory training, Nokia supplements training
and awareness with numerous live and recorded training
sessions delivered to smaller target audiences on various
compliance topics throughout the year.
2. Nokia combats and avoids all forms of retaliation and is
committed to maintaining a culture in which its employees
feel comfortable raising concerns about suspected
violations of the Code of Conduct, and related company
policies or laws and regulations. Nokia will not tolerate any
adverse employment action against an employee who
raises a compliance concern or assists in an investigation
in good faith.
3. Nokia offers multiple channels to report compliance
concerns, including approaching the Legal, Compliance
and Sustainability function, Ombuds leaders, the People
organization, a dedicated email address, and an Ethics
Helpline, which is compliant with the EU Whistleblower
Directive, that offers multiple options to report concerns,
including an online portal and country-specific options.
Nokia has internal and external web pages dedicated to
concern reporting and whistleblowing resources.
4. Nokia’s Anti-Corruption Program focuses on identifying
and mitigating compliance risks associated with third
parties and multi-layer transactions as well as geopolitical
events that may pose a risk under applicable laws,
including anti-corruption. The Anti-Corruption Program
includes various elements, such as training, monitoring,
policies, and processes.
5. All suspected breaches in procedures and standards of
anti-corruption and anti-bribery are investigated. When an
investigation concludes that there has been a violation of
Nokia’s policies, including Nokia’s Anti-Corruption and Anti-
Bribery Policy, appropriate disciplinary action is taken. Such
actions may include financial loss, termination, demotion or
role change, written warnings, and/or mandatory training.
6. The Chief Compliance Officer presents separately and
independently on the status and effectiveness of Nokia’s
Compliance Program to the full Board of Directors at least
once per year, to the Audit Committee at least four times
per year and to the Group Leadership Team at least once
per year and as needed.
7. Nokia gauges employee attitudes, perceptions, and
experiences regarding the compliance culture using survey
results and other collected inputs. These results are shared
with relevant stakeholders and managed through mitigation
plans with an eye toward continuous improvement.
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Targets and progress in targets
Nokia establishes targets as one of the vehicles to drive
and measure a robust Compliance Program. Nokia holds its
leaders accountable for driving a strong culture of compliance
within their organizations by promoting a strong culture of
compliance, leading by example, and meeting (with the goal
to exceed) established compliance targets.
Status of 2024 targets:
Ethical Business Training course
Target: Ethical Business Training course completed by
95%
of employees by 31 December 2024
Progress on target: Achieved
Ethical Business Training course completed by
98%
of employees as of 31 December 2024
Training specific to anti-corruption and bribery is included in
the Ethical Business Training course.
Line manager engagement
Target: maintain
85%
favorability of employee/line manager engagement on
ethics and compliance by the year 2030. This target covers
Nokia’s line managers and their direct reports.
Progress on target: On track
83%
for the year ended 31 December 2024.
Progress against ESG targets in 2024
Target year
Base year
Base value
Target
2024 results
Target status
G1: Governance
2030
2016
85%
Maintain 85% favorability of employee/line
manager engagement on the importance of
ethics and compliance by the year 2030
83% of employees said that their Line
Manager talked to the team about the
importance of ethics and compliance
On track
2024
2023
95%
Ethical Business Training (EBT) completed by
95% of employees.
98% of employees completed the Ethical
Business Training
Achieved
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Nokia in 2024
Disclosure tables
Nokia continuing operations
As outlined in the section ‘Basis for preparation’ within ‘General Information’, metrics are
presented separately for Nokia continuing operations and discontinued operations comprising
Submarine Networks. Disclosure tables presented in this section include continuing operations
(Nokia Group excluding Submarine Networks) both for the reporting year 2024 and comparative
period 2023 unless otherwise indicated. Key metrics for the discontinued operation for the
reporting years 2024 and 2023 are disclosed separately below this section.
The table below details anti-corruption training topics and frequency. Anti-corruption is
highlighted in Nokia’s mandatory Ethical Business Training course which is deployed annually to
all employees. In addition, separate standalone courses that focus on corruption risk are
deployed per the frequency shown:
Nokia ethics and anti-corruption training:
Topic
Format
Target Audience
Frequency
Code of Conduct (part of Ethical Business
Training course)
Code overview and acknowledgment
Conflict of interest disclosure
Online
All employees
Annually
Conflict of Interest
Online
All employees
Every 3-4 years
Anti-bribery/anti-corruption/improper
payments (part of Ethical Business Training
course)
Online
All employees incl
functions at risk(1)
Annually
Anti-corruption training for third parties
Online
Third parties
Every 3 years
Anti-bribery/controllership – advanced
Online video
Role-based
As needed
Corporate hospitality ‘Just-in-Time’ video
Online video
Employee requests
hospitality approval
At time of approval
request
Gifts, travel, and entertainment
Online
All employees
As needed
Nokia Third-Party Code of Conduct
Micro-learning
and video
Third parties
Every 2 years
Site acquisition and site permitting
compliance
Online
Role based – sales
and deployment
Every 3-4 years
Travel and expense approvals
Online
People managers
Every 3-4 years
(1)
‘Functions at risk’ means functions deemed to be at risk of corruption and bribery as a result of their tasks and responsibilities.
The training listed in the table are also deployed to the members of the administrative, management
and supervisory bodies as required.
In 2024, Nokia’s Investigations Group received a total of 923 concerns, of which 384 were
integrity concerns and were investigated by the Investigations Group as suspected violations
of Nokia’s Code of Conduct. See the following table for 2024 and 2023 reported concerns
by category.
Ethics and compliance data
2024
2023
Total number of concerns reported
923
1 047
Conflict of interest
41
54
Controllership
83
99
Dealing with government officials
4
1
Fair competition
11
4
Fair employment (all HR-related)
391
498
Guidance
112
108
Human rights
3
0
Improper payments
9
8
Insider trading
2
1
Intellectual property and confidential information
47
49
Privacy
22
27
Trade compliance
14
24
Well-being, health and safety and the environment
17
21
Working with third parties
82
71
Other
85
82
Number of investigations by the Ethics and Regulatory Compliance function
384
482
Number of allegations substantiated with ‘cause found’ after investigation
165
156
Number of employees given a written warning on grounds of violation of the Code
of Conduct
30
37
Number of employees dismissed on grounds of violation of the Code of Conduct
12
22
The following table reflects the number of outstanding legal proceedings for late payments:
2024
2023
Number of outstanding legal proceedings for late payments
0
0
Nokia is in the process of establishing a mechanism to measure the average time it takes for the
company to pay an invoice from the date when the contractual or statutory term of payment
starts to be calculated in line with the ESRS disclosure requirements.
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
177
Governance information continued
Nokia in 2024
Discontinued operations
Ethics and compliance data
2024
2023
Total number of concerns reported
7
9
Conflict of interest
1
0
Controllership
0
1
Dealing with government officials
0
0
Fair competition
0
0
Fair employment (all HR-related)
6
7
Guidance
0
0
Human rights
0
0
Improper payments
0
0
Insider trading
0
0
Intellectual property and confidential information
0
0
Privacy
0
0
Trade compliance
0
0
Well-being, health and safety and the environment
0
0
Working with third parties
0
0
Other
0
1
Number of investigations by the Ethics and Regulatory Compliance function
4
1
Number of allegations substantiated with ‘cause found’ after investigation
2
3
Number of employees given a written warning on grounds of violation of the Code
of Conduct
0
0
Number of employees dismissed on grounds of violation of the Code of Conduct
0
0
Share of employees who completed the annual training on ethical business practices
76%
86%
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
178
Governance information continued
Nokia in 2024
Reporting principles for metrics
Ethics and compliance data
Number of concerns is based on actual numbers reported and
there are no estimations included.
Line manager engagement
The line manager engagement percentage is determined by
employees’ affirmative responses to the 2024 Ethics and
Compliance Survey question, ‘My manager talks to the team
about the importance of ethics and compliance’.
Ethical Business Training
The Ethical Business Training course is assigned to all Nokia
employees. The final completion percentage is calculated by
the number of mandatory training completions divided by the
year end number of active employees.
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
179
Governance information continued
Nokia in 2024
Appendix to the Sustainability Statement
Reference table
ESRS 2 - General information
Disclosure title
Name of the disclosure requirement
Reference to the Annual Report section
Page
Basis for preparation
DR BP-1 – General basis for preparation of the sustainability statement
Basis for preparation ‘General basis for preparation of the Sustainability Statement’
87
Basis for preparation
DR BP-2 – Disclosures in relation to specific circumstances
Basis for preparation ‘Disclosures in relation to specific circumstances’
88
Governance
DR GOV-1 – The role of the administrative, management and supervisory
bodies
Governance 'Roles of Nokia’s administrative, management and supervisory bodies regarding
sustainability matters'
89
Governance
DR GOV-2 – Information provided to and sustainability matters addressed by
the undertaking’s administrative, management and supervisory bodies
Governance ‘Informing and supporting the administrative, management and supervisory bodies
in their oversight of impacts, risks and opportunities’
92
Governance
DR GOV-3 – Integration of sustainability-related performance in incentive
schemes
Governance ‘Integration of sustainability-related performance in incentive schemes’
93
Governance
DR GOV–4 - Statement on due diligence
Governance ‘Statement on due diligence’
94
Governance
DR GOV–5 - Risk management and internal controls over sustainability
reporting
Governance ‘Risk management and internal controls over sustainability reporting’
95
Strategy
DR SBM-1 – Strategy, business model and value chain
Strategy ‘Key elements of Nokia’s general strategy relevant to sustainability matters’
Strategy ‘Business model and value chain’
96
97
Strategy
DR SBM-2 – Interests and views of stakeholders
Strategy ‘Interests and views of stakeholders’
99
Strategy
DR SBM-3 - Material impacts, risks and opportunities and their interaction with
strategy and business model
Strategy ‘Material impacts, risks and opportunities and their interaction with Nokia’s strategy
and business model’
102
Impact, risk and opportunity
management
DR IRO-1 - Description of the process to identify and assess material impacts,
risks and opportunities
Impact, risk and opportunity management ‘Description of the process to identify and assess
material impacts, risks and opportunities’
108
Impact, risk and opportunity
management
DR IRO-2 – Disclosure Requirements in ESRS covered by the undertaking’s
sustainability statement
Appendix to the Sustainability Statement ‘Reference table’, ‘List of data points that derive from
other EU legislation’
180, 187
Impact, risk and opportunity
management
Policies MDR-P – Policies adopted to manage material sustainability matters
Strategy ‘Policies adopted to manage material sustainability matters’.
More information related to MDR-P are disclosed in topical sections:
Climate change (ESRS E1) ‘Policies’;
Resource use and circular economy (ESRS E5) ‘Policies’;
Own workforce (ESRS S1) ‘Policies’;
Workers in the value chain (ESRS S2) ‘Policies’;
Affected communities (ESRS S3) ‘Policies’;
Consumers and end-users (ESRS S4) ‘Policies’;
Business conduct (ESRS G1) ‘Business conduct policies and corporate culture’
107
112
129
147
156
163
166
171
Impact, risk and opportunity
management
Actions MDR-A – Actions and resources in relation to material sustainability
matters
Information related to MDR-A are disclosed in topical sections:
Climate change (ESRS E1) ‘Transition plan and actions related to climate change policies’;
Resource use and circular economy (ESRS E5) ‘Actions’;
Own workforce (ESRS S1) ‘Actions’;
Workers in the value chain (ESRS S2) ‘Actions’;
Affected communities (ESRS S3) ‘Actions’;
Consumers and end-users (ESRS S4) ‘Actions’;
Business conduct (ESRS G1) ‘Actions’
113
131
149
157
163
167
175
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
180
Appendix to the Sustainability Statement
Nokia in 2024
ESRS 2 - General information
Disclosure title
Name of the disclosure requirement
Reference to the Annual Report section
Page
Metrics and targets
Metrics MDR-M – Metrics in relation to material sustainability matters
Information related to MDR-M are disclosed in topical sections:
Climate change (ESRS E1) ‘Disclosure tables’, ‘Reporting principles for metrics’;
Resource use and circular economy (ESRS E5) ‘Disclosure tables’, ‘Reporting principles for
metrics’;
Own workforce (ESRS S1) ‘Disclosure tables’, ‘Reporting principles for Nokia own workforce
metrics’;
Workers in the value chain (ESRS S2) ‘Disclosure tables’, ‘Reporting principles for metrics’;
Affected communities (ESRS S3) ‘Targets and progress in targets’, ‘Reporting principles for
Nokia Community Investments metrics’;
Consumers and end-users (ESRS S4) ‘Targets and progress in targets’, ‘Reporting principles for
metrics’;
Business conduct (ESRS G1) ‘Disclosure tables’, ‘Reporting principles for metrics’
122, 126
133, 135
151, 154
160, 161
164, 165
167, 168
177, 179
Metrics and targets
Targets MDR-T – Tracking effectiveness of policies and actions through targets
Strategy ‘Our ESG targets’.
More detailed information on MDR-T are disclosed in topical sections:
Climate change (ESRS E1) ‘Targets and progress in targets’;
Resource use and circular economy (ESRS E5) ‘Targets and progress in targets’;
Own workforce (ESRS S1) ‘Targets and progress in targets’;
Workers in the value chain (ESRS S2) ‘Targets and progress in targets’;
Affected communities (ESRS S3) ‘Targets and progress in targets’;
Consumers and end-users (ESRS S4) ‘Targets and progress in targets’;
Business conduct (ESRS G1) ‘Targets and progress in targets’
105
118
131
150
158
164
167
176
ESRS E1 - Climate change
Disclosure title
Name of the disclosure requirement
Reference to the Annual Report section
Page
Governance
ESRS 2 GOV-3 Integration of sustainability-related performance in incentive
schemes
Governance ‘Integration of sustainability-related performance in incentive schemes’
93
Strategy
DR E1-1 – Transition plan for climate change mitigation
Climate change (ESRS E1) 'Transition plan and actions related to climate change policies'
113
Strategy
DR related to ESRS 2 SBM-3 – Material impacts, risks and opportunities and
their interaction with strategy and business model
Climate change (ESRS E1) 'Climate scenario and resilience assessment'
111
Impact, risk and opportunity
management
DR related to ESRS 2 IRO-1 – Description of the processes to identify and
assess material climate-related impacts, risks and opportunities
Climate change (ESRS E1) 'Climate scenario and resilience assessment'
111
Impact, risk and opportunity
management
DR E1-2 – Policies related to climate change mitigation and adaptation
Climate change (ESRS E1) 'Policies'
112
Impact, risk and opportunity
management
Policies MDR-P – Policies adopted to manage material sustainability matters
Strategy ‘Policies adopted to manage material sustainability matters’;
Climate change (ESRS E1) 'Policies'
107
112
Impact, risk and opportunity
management
DR E1-3 – Actions and resources in relation to climate change policies
Climate change (ESRS E1) 'Transition plan and actions related to climate change policies'
113
Impact, risk and opportunity
management
Actions MDR-A – Actions and resources in relation to material sustainability
matters
Climate change (ESRS E1) 'Transition plan and actions related to climate change policies',
'Targets and progress in targets'
113
118
Metrics and targets
DR E1-4 – Targets related to climate change mitigation and adaptation
Climate change (ESRS E1) 'Targets and progress in targets',
'Disclosure tables'
118
122
Metrics and targets
Metrics MDR-M – Metrics in relation to material sustainability matters
Climate change (ESRS E1) 'Targets and progress in targets',
'Disclosure tables',
‘Reporting principles for metrics’
118
122
126
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
181
Appendix to the Sustainability Statement continued
Nokia in 2024
Metrics and targets
Targets MDR-T – Tracking effectiveness of policies and actions through targets
Strategy ‘Our ESG targets’;
Climate change (ESRS E1) 'Transition plan and actions related to climate change policies',
'Targets and progress in targets'
105
113
118
Metrics and targets
DR E1-5 – Energy consumption and mix
Climate change (ESRS E1) 'Disclosure tables'
122
Metrics and targets
DR E1-6 – Gross scopes 1, 2, 3 and Total GHG emissions
Climate change (ESRS E1) 'Disclosure tables'
122
Metrics and targets
DR E1-7 – GHG removals and GHG mitigation projects financed through
carbon credits
Climate change (ESRS E1) 'Transition plan and actions related to climate change policies'
113
ESRS E5 - Resource use and circular economy
Disclosure title
Name of the disclosure requirement
Reference to the Annual Report section
Page
Impact, risk and opportunity
management
DR related to ESRS 2 IRO-1 – Description of the processes to identify and
assess material resource use and circular economy-related impacts, risks and
opportunities
Strategy ‘Material impacts, risks and opportunities and their interaction with Nokia’s strategy
and business model’;
Impact, risk and opportunity management ‘Description of the process to identify and assess
material impacts, risks and opportunities’;
Resource use and circular economy (ESRS E5) ‘Material impacts, risks and opportunities related
to resource use and circular economy’
102
108
128
Impact, risk and opportunity
management
DR E5-1 – Policies related to resource use and circular economy
Resource use and circular economy (ESRS E5) ‘Material impacts, risks and opportunities related
to resource use and the circular economy’, ‘Policies’
128
129
Impact, risk and opportunity
management
Policies MDR-P – Policies adopted to manage material sustainability matters
Strategy ‘Policies adopted to manage material sustainability matters’;
Resource use and circular economy (ESRS E5) ‘Policies’
107
129
Impact, risk and opportunity
management
DR E5-2 – Actions and resources related to resource use and circular economy
Resource use and circular economy (ESRS E5) ‘Material impacts, risks and opportunities related
to resource use and circular economy’, ‘Policies’, ‘Actions’
128, 129,
131
Impact, risk and opportunity
management
Actions MDR-A – Actions and resources in relation to material sustainability
matters
Resource use and circular economy (ESRS E5) ‘Actions’, ‘Targets and progress in targets’,
‘Disclosure tables’
131, 131,
133
Metrics and targets
Disclosure Requirement E5-3 – Targets related to resource use and circular
economy
Strategy ‘Our ESG targets’;
Resource use and circular economy (ESRS E5) ‘Targets and progress in targets’, ‘Actions’
105
131, 131
Metrics and targets
Metrics MDR-M – Metrics in relation to material sustainability matters
Resource use and circular economy (ESRS E5) ‘Targets and progress in targets’,
‘Disclosure tables’, ‘Reporting principles for metrics’
131, 133,
135
Metrics and targets
Targets MDR-T – Tracking effectiveness of policies and actions through targets
Strategy ‘Our ESG targets’;
Resource use and circular economy (ESRS E5) ‘Targets and progress in targets’, ‘Reporting
principles for metrics’
105
131
135
Metrics and targets
DR E5-4 – Resource inflows
Resource use and circular economy (ESRS E5) ‘Disclosure tables’, ‘Reporting principles for
metrics’
133, 135
Metrics and targets
DR E5-5 – Resource outflows
Resource use and circular economy (ESRS E5) ‘Disclosure tables’
133
ESRS S1 - Own workforce
Disclosure title
Name of the disclosure requirement
Reference to the Annual Report section
Page
Strategy
DR related to ESRS 2 SBM 2 - Interests and views of stakeholders
Strategy ‘Interests and views of stakeholders’
99
Strategy
DR related to ESRS 2 SBM 3 - Material impacts, risks and opportunities and
their interaction with strategy and business model
Strategy ‘Material impacts, risks and opportunities and their interaction with Nokia’s strategy
and business model’;
Impact, risk and opportunity management ‘Description of the process to identify and assess
material impacts, risks and opportunities’;
Own workforce (ESRS S1) ‘Material impacts, risks and opportunities related to Own Workforce’
102
108
146
Impacts, risks and
opportunities management
DR S1-1 – Policies related to own workforce
Own workforce (ESRS S1) ‘Policies’,
‘Processes for engaging with own workforce and workers’ representatives about impacts’;
Business conduct (ESRS G1) ‘Reporting channels and investigations process’
147
149
172
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
182
Appendix to the Sustainability Statement continued
Nokia in 2024
Impacts, risks and
opportunities management
Policies MDR-P – Policies adopted to manage material sustainability matters
Strategy ‘Policies adopted to manage material sustainability matters’;
Own workforce (ESRS S1) ‘Policies’
107
147
Impacts, risks and
opportunities management
DR S1-2 – Processes for engaging with own workforce and workers’
representatives about impacts
Own workforce (ESRS S1) ‘Processes for engaging with own workforce and workers’
representatives about impacts’
149
Impacts, risks and
opportunities management
DR S1-3 – Processes to remediate negative impacts and channels for own
workforce to raise concerns
Business conduct (ESRS G1) ‘Reporting channels and investigations process’
172
Impacts, risks and
opportunities management
DR S1-4 – Taking action on material impacts on own workforce, and
approaches to managing material risks and pursuing material opportunities
related to own workforce, and effectiveness of those actions
Own workforce (ESRS S1) ‘Policies’,
‘Processes for engaging with own workforce and workers’ representatives about impacts’,
‘Actions’
147
149
149
Impacts, risks and
opportunities management
Actions MDR-A – Actions and resources in relation to material sustainability
matters
Own workforce (ESRS S1) ‘Actions’
149
Impacts, risks and
opportunities management
DR S1-5 – Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
Own workforce (ESRS S1) 'Targets and progress in targets'
150
Metrics and targets
Metrics MDR-M – Metrics in relation to material sustainability matters
Own workforce (ESRS S1) 'Targets and progress in targets',
‘Disclosure tables’,
‘Reporting principles for Nokia own workforce metrics’
150
151
154
Metrics and targets
Targets MDR-T – Tracking effectiveness of policies and actions through targets
Strategy ‘Our ESG targets’;
Own workforce (ESRS S1) 'Targets and progress in targets',
‘Reporting principles for Nokia own workforce metrics’
105
150
154
Metrics and targets
DR S1-6 – Characteristics of the undertaking’s employees
Own workforce (ESRS S1) ‘Disclosure tables’ Table. Number of employees by contract type and
gender, 2024; Table. Number of employees by contract type and country / region, 2024; Table.
Employee turnover, 2024
151
151
151
Metrics and targets
DR S1-7 – Characteristics of non-employee workforce in the undertaking's own
workforce
Own workforce (ESRS S1) ‘Disclosure tables’ Table. Number of non-employees, 2024
151
Metrics and targets
DR S1-9 – Diversity metrics
Own workforce (ESRS S1) ‘Disclosure tables’ Table. Employees at top management level, 2024;
Table. Employees by age group, 2024
151
152
Metrics and targets
DR S1-10 – Adequate wages
Own workforce (ESRS S1) ‘Adequate wages’
148
Metrics and targets
DR S1-13 – Training and skills development metrics
Own workforce (ESRS S1) ‘Disclosure tables’ Table. Employees skills development, 2024; Table.
Training hours, 2024; Table. Employee category breakdown, 2024
152
152
Metrics and targets
DR S1-16 – Remuneration metrics (pay gap and total remuneration)
Own workforce (ESRS S1) ‘Disclosure tables’ Table. Gender pay gap and annual total
remuneration, 2024
152
ESRS S2 - Workers in the value chain
Disclosure title
Name of the disclosure requirement
Reference to the Annual Report section
Page
Strategy
DR related to ESRS 2 SBM-2 Interests and views of stakeholders
Strategy ‘Interests and views of stakeholders’
99
Strategy
DR related to ESRS 2 SBM-3 Material impacts, risks and opportunities and their
interaction with strategy and business model
Strategy ‘Material impacts, risks and opportunities and their interaction with Nokia’s strategy
and business model’;
Impact, risk and opportunity management ‘Description of the process to identify and assess
material impacts, risks and opportunities’;
Workers in the value chain (ESRS S2) 'Material impacts, risks and opportunities related to workers
in the value chain'
102
108
155
Impact, risk and opportunity
management
DR S2-1 – Policies related to value chain workers
Workers in the value chain (ESRS S2) 'Policies'
156
Impact, risk and opportunity
management
Policies MDR-P – Policies adopted to manage material sustainability matters
Strategy ‘Policies adopted to manage material sustainability matters’;
Workers in the value chain (ESRS S2) 'Policies'
107
156
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
183
Appendix to the Sustainability Statement continued
Nokia in 2024
Impact, risk and opportunity
management
DR S2-2 – Processes for engaging with value chain workers about impacts
Workers in the value chain (ESRS S2) 'Processes for engaging with value chain workers about
impacts'
156
Impact, risk and opportunity
management
DR S2-3 – Processes to remediate negative impacts and channels for value
chain workers to raise concerns
Workers in the value chain (ESRS S2) 'Processes to remediate negative impacts and channels for
value chain workers to raise concerns;
Business conduct (ESRS G1) ‘Reporting channels and investigations process’
156
172
Impact, risk and opportunity
management
DR S2-4 – Taking action on material impacts on value chain workers, and
approaches to managing material risks and pursuing material opportunities
related to value chain workers, and effectiveness of those actions
Workers in the value chain (ESRS S2) 'Processes to remediate negative impacts and channels for
value chain workers to raise concerns', ‘Actions’;
Business conduct (ESRS G1) ‘Reporting channels and investigations process’
156
157
172
Impact, risk and opportunity
management
Actions MDR-A – Actions and resources in relation to material sustainability
matters
Workers in the value chain (ESRS S2) ‘Actions'
157
Metrics and targets
Metrics MDR-M – Metrics in relation to material sustainability matters
Workers in the value chain (ESRS S2) ‘Disclosure tables', ‘Reporting principles for metrics’
160, 161
Metrics and targets
Targets MDR-T – Tracking effectiveness of policies and actions through targets
Strategy ‘Our ESG targets’;
Workers in the value chain (ESRS S2) ‘Targets and progress in targets', ‘Reporting principles for
metrics’
105,
158, 161
Metrics and targets
DR S2-5 – Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
Workers in the value chain (ESRS S2) ‘Targets and progress in targets', 'Processes for engaging
with value chain workers about impacts'
158,
156
ESRS S3 - Affected communities
Disclosure title
Name of the disclosure requirement
Reference to the Annual Report section
Page
Strategy
DR related to ESRS 2 SBM-2 – Interests and views of stakeholders
Strategy ‘Interests and views of stakeholders’
99
Strategy
DR related to ESRS 2 SBM 3 - Material impacts, risks and opportunities and
their interaction with strategy and business model
Strategy ‘Material impacts, risks and opportunities and their interaction with strategy and
business model’;
Impact, risk and opportunity management ‘Description of the process to identify and assess
material impacts, risks and opportunities’;
Affected communities (ESRS S3) 'Material impacts, risks and opportunities related to affected
communities
102
108
162
Impacts, risks and
opportunities management
DR S3-1 – Policies related to affected communities
Affected communities (ESRS S3) ‘Policies’
163
Impacts, risks and
opportunities management
Policies MDR-P – Policies adopted to manage material sustainability matters
Strategy ‘Policies adopted to manage material sustainability matters’;
Affected communities (ESRS S3) ‘Policies’
107
163
Impacts, risks and
opportunities management
DR S3-2 - Processes for engaging with affected communities about impacts
Affected communities (ESRS S3) ‘Processes for engaging with affected communities about
impacts’
163
Impacts, risks and
opportunities management
DR S3-3 – Processes to remediate negative impacts and channels for affected
communities to raise concerns
Business conduct (ESRS G1) ‘Reporting channels and investigations process’
172
Impacts, risks and
opportunities management
DR S3-4 - Taking action on material impacts on affected communities, and
approaches to managing material risks and pursuing material opportunities
related to affected communities, and effectiveness of those actions
Affected communities (ESRS S3) ‘Processes for engaging with affected communities about impacts’,
‘Actions’,
'Targets and progress in targets’
163
163
164
Impacts, risks and
opportunities management
Actions MDR-A – Actions and resources in relation to material sustainability
matters
Affected communities (ESRS S3) ‘Actions’,
'Targets and progress in targets’
163
164
Metrics and targets
DR S3-5 – Targets related to managing material negative impacts,advancing
positive impacts, and managing material risks and opportunities
Affected communities (ESRS S3) 'Targets and progress in targets’
164
Metrics and targets
Metrics MDR-M – Metrics in relation to material sustainability matters
Affected communities (ESRS S3) 'Targets and progress in targets’,
‘Reporting principles for Nokia Community Investments metrics’
164
165
Metrics and targets
Targets MDR-T – Tracking effectiveness of policies and actions through targets
Strategy ‘Our ESG targets’;
Affected communities (ESRS S3) 'Targets and progress in targets’,
‘Reporting principles for Nokia Community Investments metrics’
105
164
165
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
184
Appendix to the Sustainability Statement continued
Nokia in 2024
ESRS S4 - Consumers and end-users
Disclosure title
Name of the disclosure requirement
Reference to the Annual Report section
Page
Strategy
DR related to ESRS 2 SBM-2 –Interests and views of stakeholders
Strategy ‘Interests and views of stakeholders’
99
Strategy
DR related to ESRS 2 SBM 3 - Material impacts, risks and opportunities and
their interaction with strategy and business model
Strategy ‘Material impacts, risks and opportunities and their interaction with Nokia’s strategy
and business model’;
Impact, risk and opportunity management ‘Description of the process to identify and assess
material impacts, risks and opportunities’;
Consumers and end-users (ESRS S4) 'Material impacts, risks and opportunities related to
consumers and end-users’
102
108
166
Impacts, risks and
opportunities management
DR S4-1 – Policies related to consumers and end-users
Consumers and end-users (ESRS S4) ‘Policies’
166
Impacts, risks and
opportunities management
Policies MDR-P – Policies adopted to manage material sustainability matters
Strategy ‘Policies adopted to manage material sustainability matters’;
Consumers and end-users (ESRS S4) ‘Policies’
107
166
Impacts, risks and
opportunities management
DR S4-2 – Processes for engaging with consumers and end-users about
impacts
Consumers and end-users (ESRS S4) ‘Processes for engaging with consumers and end-users
about impacts’
167
Impacts, risks and
opportunities management
DR S4-3 – Processes to remediate negative impacts and channels for
consumers and end-users to raise concerns
Business conduct (ESRS G1) ‘Reporting channels and investigations process’
172
Impacts, risks and
opportunities management
DR S4-4 – Taking action on material impacts on consumers and end- users, and
approaches to managing material risks and pursuing material opportunities
related to consumers and end-users, and effectiveness of those actions
Consumers and end-users (ESRS S4) ‘Processes for engaging with consumers and end-users
about impacts’, ‘Actions’, ‘Targets and progress in targets’
167, 167,
167
Impacts, risks and
opportunities management
Actions MDR-A – Actions and resources in relation to material sustainability
matters
Consumers and end-users (ESRS S4) ‘Targets and progress in targets’
167
Metrics and targets
DR S4-5 – Targets related to managing material negative impacts,advancing
positive impacts, and managing material risks and opportunities
Consumers and end-users (ESRS S4) ‘Targets and progress in targets’
167
Metrics and targets
Metrics MDR-M – Metrics in relation to material sustainability matters
Consumers and end-users (ESRS S4) ‘Targets and progress in targets’, ‘Reporting principles for
metrics’
167, 168
Metrics and targets
Targets MDR-T – Tracking effectiveness of policies and actions through targets
Strategy ‘Our ESG targets’;
Consumers and end-users (ESRS S4) ‘Targets and progress in targets’, ‘Reporting principles
for metrics’
105
167, 168
ESRS G1 - Business conduct
Disclosure title
Name of the disclosure requirement
Reference to the Annual Report section
Page
Governance
DR related to ESRS 2 GOV-1 – The role of the administrative, management and
supervisory bodies
Governance 'Role of Nokia’s administrative, management and supervisory bodies regarding
sustainability matters'
89
Impacts, risks and
opportunities management
DR related to ESRS 2 IRO-1 – Description of the processes to identify and
assess material impacts, risks and opportunities
Strategy ‘Material impacts, risks and opportunities and their interaction with Nokia’s strategy
and business model’;
Impact, risk and opportunity management ‘Description of the process to identify and assess
material impacts, risks and opportunities’;
Business conduct (ESRS G1) 'Material impacts, risks and opportunities related to business
conduct’
102
108
170
Impacts, risks and
opportunities management
Policies MDR-P – Policies adopted to manage material sustainability matters
Strategy ‘Policies adopted to manage material sustainability matters’;
Business conduct (ESRS G1) 'Business conduct policies and corporate culture'
107
171
Impacts, risks and
opportunities management
DR G1-1– Business conduct policies and corporate culture
Strategy ‘Policies adopted to manage material sustainability matters’;
Business conduct (ESRS G1) 'Business conduct policies and corporate culture'
107
171
Impacts, risks and
opportunities management
DR G1-2 – Management of relationships with suppliers
Business conduct (ESRS G1) 'Management of supplier relationships'
174
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
185
Appendix to the Sustainability Statement continued
Nokia in 2024
Impacts, risks and
opportunities management
DR G1-3 – Procedures to address corruption and bribery
Business conduct (ESRS G1) 'Material impacts, risks and opportunities related to business
conduct’,
‘Business conduct policies and corporate culture',
‘Reporting channels and investigations process',
‘Protecting Against Retaliation’,
‘Training’,
‘Nokia opportunity: Anti-Corruption and Anti-Bribery Program'
170
171
172
172
173
173
Impacts, risks and
opportunities management
Actions MDR-A – Actions and resources in relation to material sustainability
matters
Business conduct (ESRS G1) 'Actions',
'Targets and progress in targets'
175
176
Metrics and targets
Metrics MDR-M – Metrics in relation to material sustainability matters
Business conduct (ESRS G1) ‘Targets and progress in targets',
‘Disclosure tables’,
‘Reporting principles for metrics’
176
177
179
Metrics and targets
Targets MDR-T – Tracking effectiveness of policies and actions through targets
Strategy ‘Our ESG targets’;
Business conduct (ESRS G1) ‘Targets and progress in targets',
‘Reporting principles for metrics’
105
176
179
Metrics and targets
DR G1-6 – Payment practices
Business conduct (ESRS G1) ‘Management of supplier relationships’,
‘Disclosure tables’
174
177
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
186
Appendix to the Sustainability Statement continued
Nokia in 2024
List of data points that derive from other EU legislation
ESRS 2, GOV-1
Board’s Gender Diversity
21 (d)
X
X
Yes
Disclosed in 'Governance' section of General
information
89
ESRS 2 GOV-1
Percentage of board members who are independent
21 (e)
X
Yes
Disclosed in 'Governance' section of General
information
89
ESRS 2 GOV-4
Statement on due diligence
30
X
Yes
Disclosed in 'Governance' section of General
information
89
ESRS 2 SBM-1
Involvement in activities related to fossil fuel activities
40 (d) i
X
X
X
No
Not applicable to Nokia
ESRS 2 SBM-1 Involvement in activities related to chemical production
40 (d) ii
X
X
No
Not applicable to Nokia
ESRS 2 SBM-1 Involvement in activities related to controversial weapons
40 (d) iii
X
X
No
Not applicable to Nokia
ESRS 2 SBM-1 Involvement in activities related to cultivation and production of
tobacco
40 (d) iv
X
No
Not applicable to Nokia
ESRS E1-1 Transition plan to reach climate neutrality by 2050
14
X
Yes
Disclosed in ‘Transition plan and actions in
related to climate change policies’ section of E1
113
ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks
16 (g)
X
X
Yes
Disclosed in ‘Transition plan and actions in
related to climate change policies’ section of E1
113
ESRS E1-4 GHG emission reduction targets
34
X
X
X
Yes
Disclosed in ‘Targets and progress in targets’
section of E1
118
ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only
high climate impact sectors)
38
X
No
Not applicable to Nokia
ESRS E1-5 Energy consumption and mix
37
X
Yes
Disclosed in ‘Disclosure tables’ section of E1
122
ESRS E1-5 Energy intensity associated with activities in high climate impact sectors
40-43
X
No
Not applicable to Nokia
ESRS E1-6 Gross scope 1, 2, 3 and Total GHG emissions
44
X
X
X
Yes
Disclosed in ‘Disclosure tables’ section of E1
122
ESRS E1-6 Gross GHG emissions intensity
53-55
X
X
X
Yes
Disclosed in ‘Disclosure tables’ section of E1
122
ESRS E1-7 GHG removals and carbon credits
56
X
No
Not applicable to Nokia
ESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks
66
X
No
Nokia decided to apply phase-in option and not
to disclose these metrics in 2024
ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk
ESRS E1-9 Location of significant assets at material physical risk
66 (a) and (c)
X
No
Nokia decided to apply phase-in option and not
to disclose these metrics in 2024
ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-
efficiency classes
67 (c)
X
No
Nokia decided to apply phase-in option and not
to disclose these metrics in 2024
ESRS E1-9 Degree of exposure of the portfolio to climate- related opportunities
69
X
No
Nokia decided to apply phase-in option and not
to disclose these metrics in 2024
ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR Regulation
(European Pollutant Release and Transfer Register) emitted to air, water and soil
28
X
No
Not applicable to Nokia
ESRS E3-1 Water and marine resources
9
X
No
Not applicable to Nokia
ESRS E3-1 Dedicated policy
13
X
No
Not applicable to Nokia
ESRS E3-1 Sustainable oceans and seas
14
X
No
Not applicable to Nokia
ESRS E3-4 Total water recycled and reused
28 (c)
X
No
Not applicable to Nokia
Section
Para
SFDR
reference
Pillar 3
reference
Benchmark
Regulation
reference
EU Climate
Law
reference
Material
(Yes/ No)
Reference to the Annual Report section
Page
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
187
Appendix to the Sustainability Statement continued
Nokia in 2024
ESRS E3-4 Total water consumption in m3 per net revenue on own operations
29
X
No
Not applicable to Nokia
ESRS 2- IRO 1 – E4
16 (a) i
X
No
Not applicable to Nokia
ESRS 2- IRO 1 – E4
16 (b)
X
No
Not applicable to Nokia
ESRS 2- IRO 1 – E4
16 (c)
X
No
Not applicable to Nokia
ESRS E4-2 Sustainable land / agriculture practices or policies
24 (b)
X
No
Not applicable to Nokia
ESRS E4-2 Sustainable oceans / seas practices or policies
24 (c)
X
No
Not applicable to Nokia
ESRS E4-2 Policies to address deforestation
24 (d)
X
No
Not applicable to Nokia
ESRS E5-5 Non-recycled waste
37 (d)
X
No
Not applicable to Nokia
ESRS E5-5 Hazardous waste and radioactive waste
39
X
No
Not applicable to Nokia
ESRS 2- SBM3 – S1 Risk of incidents of forced labour
14 (f)
X
No
Not applicable to Nokia
ESRS 2- SBM3 – S1 Risk of incidents of child labour
14 (g)
X
No
Not applicable to Nokia
ESRS S1-1 Human rights policy commitments
20
X
Yes
Disclosed in 'Policies' section of S1 and ‘Policies
adopted to manage material sustainability
matters’ in General information
147, 107
ESRS S1-1 Due diligence policies on issues addressed by the fundamental
International Labor Organization Conventions 1 to 8
21
X
No
Not applicable to Nokia
ESRS S1-1 processes and measures for preventing trafficking in human beings
22
X
No
Not applicable to Nokia
ESRS S1-1 workplace accident prevention policy or management system
23
X
Yes
Disclosed in 'Policies' section of S1
147
ESRS S1-3 grievance/complaints handling mechanisms
32 (c)
X
Yes
Disclosed in 'Processes to remediate negative
impacts and channels for own workforce to raise
concerns' section of S1
149
ESRS S1-14 Number of fatalities and number and rate of work-related accidents
88 (b) and (c)
X
X
No
Not applicable to Nokia
ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness
88 (e)
X
No
Not applicable to Nokia
ESRS S1-16 Unadjusted gender pay gap
97 (a)
X
X
Yes
Adjusted gender pay gap disclosed in ‘Disclosure
tables’ section of S1
151
ESRS S1-16 Excessive CEO pay ratio
97 (b)
X
Yes
Disclosed in ‘Disclosure tables' section of S1
151
ESRS S1-17 Incidents of discrimination
103 (a)
X
No
Not applicable to Nokia
ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD
104 (a)
X
X
No
Not applicable to Nokia
ESRS 2- SBM3 – S2 Significant risk of child labour or forced labour in the value chain
11 (b)
X
No
No such cases identified
ESRS S2-1 Human rights policy commitments
17
X
Yes
Disclosed in 'Policies' section of S2
156
ESRS S2-1 Policies related to value chain workers
18
X
Yes
Disclosed in 'Policies' section of S2
156
ESRS S2-1 Non-respect of UNGPs on Business and Human Rights principles and
OECD guidelines
19
X
X
Yes
Disclosed in 'Policies' section of S2
156
ESRS S2-1 Due diligence policies on issues addressed by the fundamental
International Labor Organization Conventions 1 to 8
19
X
Yes
Disclosed in 'Policies' section of S2
156
ESRS S2-4 Human rights issues and incidents connected to its upstream and
downstream value chain
36
X
Yes
Reported in table 'Examples of identified non-
compliance and actions taken' within S2
157
ESRS S3-1 Human rights policy commitments
16
X
Yes
Disclosed in 'Policies' section of S2
156
Section
Para
SFDR
reference
Pillar 3
reference
Benchmark
Regulation
reference
EU Climate
Law
reference
Material
(Yes/ No)
Reference to the Annual Report section
Page
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
188
Appendix to the Sustainability Statement continued
Nokia in 2024
ESRS S3-1 non-respect of UNGPs on Business and Human Rights, ILO principles or
and OECD guidelines
17
X
X
No
No such cases identified
ESRS S3-4 Human rights issues and incidents
36
X
No
Not applicable to Nokia
ESRS S4-1 Policies related to consumers and end-users
16
X
Yes
Disclosed in 'Policies' section of S4
166
ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines
17
X
X
No
No such cases identified
ESRS S4-4 Human rights issues and incidents
35
X
No
Not applicable to Nokia
ESRS G1-1 United Nations Convention against Corruption
10 (b)
X
Yes
Disclosed in ‘Business conduct policies and
corporate culture’ section of G1
171
ESRS G1-1 Protection of whistle- blowers
10 (d)
X
Yes
Disclosed in ‘Business conduct policies and
corporate culture’ section of G1
171
ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws
24 (a)
X
X
No
Not applicable to Nokia
ESRS G1-4 Standards of anti- corruption and anti- bribery
24 (b)
X
No
Not applicable to Nokia
Section
Para
SFDR
reference
Pillar 3
reference
Benchmark
Regulation
reference
EU Climate
Law
reference
Material
(Yes/ No)
Reference to the Annual Report section
Page
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
189
Appendix to the Sustainability Statement continued
Nokia in 2024
Shares and shareholders
Share details
Shares and share capital
Nokia has one class of shares. Each Nokia share entitles the holder to one vote at general
meetings of Nokia.
At 31 December 2024, the share capital of Nokia Corporation equaled EUR 245 896 461.96 and
the total number of shares issued was 5 605 850 345. At 31 December 2024, the total number
of shares included 232 700 997 shares owned by Group companies representing approximately
4.2% of the total number of shares and the total voting rights.
In November 2024, under the authorization granted to the Board of Directors by the Annual
General Meeting 2024, the Board of Directors resolved on a directed issuance of a maximum
number of 28 651 000 shares held by the Company as a result of the issue of new shares in
October 2023, to settle the Company’s commitments under the equity-based incentive plans
and the employee share purchase plan in respect of shares to be delivered during the year 2025.
The shares were issued without consideration.
In November 2024, under the authorization granted to the Board of Directors by the Annual
General Meeting 2024, the Board of Directors resolved on an issuance of 150 000 000 new
shares without consideration to itself and resolved on a subsequent directed issuance
of a maximum number of 150 000 000 shares held by the Company as a result of the
aforementioned issuance, to settle its commitments under the merger agreement related to
the Infinera acquisition in respect of shares to be delivered to eligible stockholders of Infinera.
To the extent that the shares are not needed to settle Nokia’s obligations related to the
completion of the acquisition, the Board of Directors resolved on a directed share issuance of
the aforementioned shares without consideration to participants of Nokia's and Infinera's equity
programs the latter of which was assumed by Nokia upon the completion of the acquisition.
During 2024, the Parent Company transferred a total of 24 380 761 treasury shares without
consideration to employees, including certain members of the Group Leadership Team, as
settlement under Parent Company equity-based incentive plans and the employee share
purchase plan in accordance with the rules of the plans. The transfers were based on the
resolution of the Board of Directors in October 2023 to issue shares held by the Company to
settle its commitments to participants of the plan.
Information on the authorizations held by the Board of Directors in 2024 to issue shares and
special rights entitling to shares, to transfer shares and repurchase own shares, as well as
information on related party transactions, the shareholders and share-based incentives is
available in this section “Shares and shareholders” and additionally in Notes 3.2. Remuneration
of key management, 3.3. Share-based payments, 5.1. Equity and 6.4. Related party transactions
in the consolidated financial statements.
In December 2024, the Board of Directors decided to cancel 157 646 220 Nokia shares held
by the Company and repurchased under the share buyback program initiated in March 2024.
The buyback program was accelerated in July 2024 and completed in November 2024.
The cancellation did not affect the Company’s share capital nor total equity.
The Board of Directors held at 31 December 2024 a total of 1 056 085 shares and ADSs in
Nokia, which represented approximately 0.02% of our total shares and voting rights excluding
shares held by the Nokia Group. The President and CEO owned at 31 December 2024 a total of
1 573 826 shares.
There were no public takeover offers by third parties for Nokia’s shares or by Nokia for other
companies’ shares during the 2024 and 2023 fiscal years.
Nokia does not have minimum or maximum share capital or a par value of a share.
31 December
2024
2023
2022
2021
2020
Share capital, EURm
246
246
246
246
246
Shares, (000s)
5 605 850
5 613 497
5 632 298
5 675 461
5 653 886
Shares held by the Group, (000s)
232 701
87 896
45 282
40 468
36 390
Number of shares excluding
shares held by the Group, (000s)
5 373 149
5 525 601
5 587 016
5 634 993
5 617 496
Average number of shares
excluding shares held by the
Group during the year
Basic, (000s)(1)
5 475 817
5 549 468
5 614 182
5 630 025
5 612 418
Diluted, (000s)(1)
5 530 603
5 585 923
5 670 020
5 684 235
5 612 418
Number of registered
shareholders(2)
224 196
247 893
238 359
233 844
246 886
(1)
Used in calculation of earnings per share attributable to equity holders of the parent.
(2)
Each account operator is included in the figure as only one registered shareholder.
Business
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190
Shares and shareholders
Nokia in 2024
Key ratios
For the year ended 31 December
2024
2023
2022
2021
2020
Earnings per share, basic, EUR
Continuing operations(1)
0.31
0.11
0.75
N/A
N/A
Discontinued operations(1)
(0.08)
0.01
0.01
N/A
N/A
Profit for the year
0.23
0.12
0.76
0.29
(0.45)
Earnings per share, diluted, EUR
Continuing operations(1)
0.31
0.11
0.74
N/A
N/A
Discontinued operations(1)
(0.08)
0.01
0.01
N/A
N/A
Profit for the year
0.23
0.12
0.75
0.29
(0.45)
Proposed dividend per share, EUR(2)
0.14
0.13
0.12
0.08
0.00
Dividend payout ratio(3)
45.2 %
118.2 %
16.0 %
N/A
N/A
Total dividends, EURm(4)
785
730
676
449
—
31 December
2024
2023
2022
2021
2020
Shareholders’ equity per share, EUR
3.84
3.72
3.82
3.08
2.22
Share price, EUR(5)
4.27
3.05
4.33
5.57
3.15
Price-to-earnings ratio(3)
13.77
27.73
5.77
N/A
N/A
Dividend yield(1)
3.28%
4.26%
2.77%
1.44%
—
Market capitalization, EURm
22 943
16 853
24 192
31 409
17 701
(1)
In June 2024, Nokia classified its Submarine Networks business as a discontinued operation. The comparative amounts for 2023
and 2022 have been recast accordingly, however, due to undue cost and effort required to recast historical accounting records the
comparative amounts for 2021 and 2020 have not been recast.
(2)
The Board of Directors proposes to the Annual General Meeting to be authorized to decide in its discretion on the distribution of
an aggregate maximum of EUR 0.14 per share as dividend from the retained earnings and/or as assets from the reserve for
invested unrestricted equity.
(3)
Calculated based on the basic earnings per share from continuing operations.
(4)
In 2024, total dividends is calculated based on the proposed Annual General Meeting authorization to the Board of a maximum
distribution of EUR 0.14 per share for the financial year 2024, and the total number of shares on the date of issuing the financial
statements for 2024. On the date of issuing the financial statements for 2024 the total number of Nokia shares is 5 605 850 345.
Comparative amounts represent the actual total distribution to equity holders of the parent for the financial year presented.
(5)
Closing Nokia share price at year end on Nasdaq Helsinki.
Share turnover
For the year ended 31 December
2024
2023
2022
2021
2020
Number of shares traded during the
year (000s)(1)
7 175 750 7 754 279 10 294 615 16 560 334 13 903 762
Average number of shares excluding
shares held by the Group during the year
(000s)
5 475 817 5 549 468 5 614 182 5 630 025 5 612 418
Share turnover %
131
140
183
294
248
(1)
Source: Nasdaq Helsinki, the NYSE composite tape and Euronext Paris.
The principal trading markets for the shares are Nasdaq Helsinki and Euronext Paris, in the form
of shares, and the NYSE, in the form of ADSs.
Share price development
Nasdaq Helsinki
EUR
High
Low
Value
2024 Full year High/Low
4.58
3.00
2024 Full year Average (Volume-weighted)
3.64
Year-end value 31 December 2024
4.27
Year-end value 31 December 2023
3.05
Change from 31 December 2023 to 31 December 2024
40.0%
New York Stock Exchange
USD
High
Low
Value
2024 Full year High/Low
4.95
3.29
2024 Full year Average (Volume-weighted)
3.99
Year-end value 31 December 2024
4.43
Year-end value 31 December 2023
3.42
Change from 31 December 2023 to 31 December 2024
29.5%
Euronext Paris
EUR
High
Low
Value
2024 Full year High/Low
4.57
3.01
2024 Full year Average (Volume-weighted)
3.68
Year-end value 31 December 2024
4.26
Year-end value 31 December 2023
3.06
Change from 31 December 2023 to 31 December 2024
39.2%
Business
overview
Corporate
governance
Board
review
Financial
statements
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information
191
Shares and shareholders continued
Nokia in 2024
Stock option exercises
Since 2019, Nokia has not administered any global stock option plans.
Dividend and share buybacks
The dividend to shareholders is Nokia’s principal method of distributing earnings to
shareholders. The dividend policy was updated at the Capital Markets Day in March 2021
to read as follows: “We target recurring, stable and over time growing ordinary dividend
payments, taking into account the previous year’s earnings as well as the company’s financial
position and business outlook”.
The Board of Directors proposes to the Annual General Meeting 2025 that based on the
balance sheet to be adopted for the financial year ended on 31 December 2024, no dividend
is distributed by a resolution of the Annual General Meeting. Instead, the Board of Directors
proposes to be authorized to resolve in its discretion on the distribution of an aggregate
maximum of EUR 0.14 per share as dividend from the retained earnings and/or as assets from
the reserve for invested unrestricted equity. The authorization would be used to distribute
dividend and/or assets from the reserve for invested unrestricted equity in four installments
during the authorization period, in connection with the quarterly results, unless the Board
of Directors decides otherwise for a justified reason. The proposed total authorization for
distribution of dividend and/or assets from the reserve for invested unrestricted equity is
in line with the Company’s dividend policy. The authorization would be valid until the opening
of the next Annual General Meeting. The Board would make separate resolutions on the
amount and timing of each distribution of dividend and/or assets from the reserve for
invested unrestricted equity.
In the first quarter of 2024, under the authorization granted to the Board of Directors by the
Annual General Meeting 2023, Nokia announced a share buyback program to repurchase shares
to return up to EUR 600 million of cash to shareholders in tranches over a period of two years.
The program was launched in March 2024 and it was accelerated in July by increasing the
number of shares to be repurchased during the year 2024. The whole EUR 600 million program
was completed in November 2024 and the repurchased shares were cancelled in December 2024.
In November 2024, under the authorization granted to the Board of Directors by the Annual
General Meeting 2024, Nokia launched a share buyback program to offset the dilutive effect
of the acquisition of Infinera announced in June 2024. The program targets to repurchase
150 million shares for an aggregate purchase price not exceeding EUR 900 million. The
repurchases commenced in November 2024 and will end latest by 31 December 2025.
We distribute distributable funds, if any, within the limits set by the Finnish Companies Act as
defined below. We make and calculate the distribution, if any, in the form of cash dividends,
assets from the reserve for invested unrestricted equity, share buybacks, or in some other form,
or a combination of these. There is no specific formula by which the amount of a distribution
is determined, although some limits set by law are discussed below. The timing and amount
of future distributions of retained earnings and/or assets from the reserve for invested
unrestricted equity, if any, will depend on our future results and financial conditions.
Under the Finnish Companies Act, we may distribute retained earnings and/or assets from the
reserve for invested unrestricted equity on our shares only upon a shareholders’ resolution
and in the amount proposed by the Board, subject to limited exceptions. The amount of any
distribution is limited to the amount of distributable earnings of the Parent Company pursuant
to the last audited financial statements approved by our shareholders, taking into account the
material changes in the financial situation of the Parent Company after the end of the last
financial period and a statutory requirement that the distribution of earnings must not result
in insolvency of the Parent Company. Subject to exceptions relating to the right of minority
shareholders to request a certain minimum distribution, the distribution may not exceed the
amount proposed by the Board of Directors.
Purchases of equity securities by the Company and affiliated purchasers
The table below presents additional information on the purchases of treasury shares in 2024:
Period
Total number of shares
purchased
Average price paid per
share, EUR
Total number of shares
purchased as part of
publicly announced
plans or programs
Maximum value of
shares that may yet be
purchased under the
plans or programs, EUR
January(1)
0
—
0
300 000 000
February
—
—
—
300 000 000
March
3 290 248
3.27
3 290 248
289 225 892
April
10 016 054
3.27
10 016 054
256 430 168
May
7 912 962
3.53
7 912 962
228 473 123
June
8 288 039
3.51
8 288 039
199 343 182
July(2)
30 031 651
3.49
30 031 651
394 543 699
August
24 756 945
3.55
24 756 945
306 682 042
September
—
—
—
306 682 042
October
43 187 891
4.15
43 187 891
127 285 596
November(3)
34 522 895
4.19
34 522 895
882 584 913
December
14 825 581
4.18
14 825 581
820 640 546
Total
176 832 266
3.84
176 832 266
(1) On 25 January 2024, Nokia announced that its Board of Directors is initiating a share buyback program to return up to EUR 600
million of cash to shareholders in tranches over a period of two years pursuant to an authorization from the Annual General Meeting
2023. The first phase of the share buyback program started on 20 March 2024.
(2) On 19 July 2024, the Board of Directors decided to accelerate the timeframe for the share buyback program to complete the whole
EUR 600 million program by the end of 2024. The repurchases under this program ended on 21 November 2024.
(3) On 22 November 2024, Nokia announced that its Board of Directors is initiating a share buyback program to offset dilutive effect of
acquisition of Infinera pursuant to an authorization from the Annual General Meeting 2024. The program targets to repurchase
150 million shares for an aggregate price not exceeding EUR 900 million. The repurchases started on 25 November 2024.
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Shareholders
At 31 December 2024, shareholders registered in Finland represented approximately 26% and
shareholders registered in the name of a nominee represented approximately 74% of the total
number of shares of Nokia Corporation. The number of directly registered shareholders was
224 196 at 31 December 2024. Each account operator (12) is included in this figure as only one
registered shareholder.
Largest shareholders registered in Finland at 31 December 2024(1)
Shareholder
Total number
of shares 000s
% of all shares
% of all voting
rights
Solidium Oy
325 000
5.80%
5.80%
Keskinäinen Työeläkevakuutusyhtiö Varma
78 266
1.40%
1.40%
Keskinäinen Eläkevakuutusyhtiö Ilmarinen
74 685
1.33%
1.33%
Keskinäinen Työeläkevakuutusyhtiö Elo
39 185
0.70%
0.70%
Valtion Eläkerahasto
32 000
0.57%
0.57%
Oy Lival Ab
17 490
0.31%
0.31%
Svenska Kulturfonden
14 618
0.26%
0.26%
Nordea Pro Finland Fund
11 378
0.20%
0.20%
Sijoitusrahasto Seligson & Co
10 482
0.19%
0.19%
Evli Finland Select Fund
9 300
0.17%
0.17%
(1)
Excluding nominee-registered shares and shares owned by Nokia Corporation. Nokia Corporation owned 219 494 558 shares at
31 December 2024.
Breakdown of share ownership at 31 December 2024(1)
By number of shares owned
Number of
shareholders
% of
shareholders
Total number
of shares
% of all shares
1–100
61 483
27.42%
2 896 001
0.05%
101–1 000
101 802
45.41%
44 653 197
0.80%
1 001–10 000
53 865
24.03%
167 776 088
2.99%
10 001–100 000
6 619
2.95%
162 084 771
2.89%
100 001–500 000
333
0.15%
65 397 980
1.17%
500 001–1 000 000
30
0.01%
20 990 753
0.38%
1 000 001–5 000 000
40
0.02%
99 952 980
1.78%
Over 5 000 000
24
0.01% 5 042 098 575
89.94%
Total
224 196
100.00% 5 605 850 345
100.00%
(1)
The breakdown covers only shareholders registered in Finland, and each account operator (12) is included in the number of
shareholders as only one registered shareholder. As a result, the breakdown is not illustrative of the entire shareholder base
of Nokia.
By nationality
% of shares
Non-Finnish shareholders
74.44%
Finnish shareholders
25.56%
Total
100.00%
By shareholder category (Finnish shareholders)
% of shares
Corporations
5.49%
Households
6.74%
Financial and insurance institutions
2.20%
Non-profit organizations
1.08%
Governmental bodies (incl. pension insurance companies)
10.05%
Total
25.56%
At 31 December 2024, a total of 673 112 179 ADSs (equivalent to the same number of shares
or approximately 12% of the total shares) were outstanding and held of record by 89 183
registered holders in the United States. We are aware that many ADSs are held of record by
brokers and other nominees, and accordingly the above number of holders is not necessarily
representative of the actual number of persons who are beneficial holders of ADSs or the
number of ADSs beneficially held by such persons. Based on information available from
Broadridge Financial Solutions, Inc., the number of beneficial owners of ADSs at 31 December
2024 was 660 948.
Based on the most recent information available to us dated 2 February 2024, at 31 December
2023, BlackRock, Inc. beneficially owned 372 591 440 Nokia shares, which at that time
corresponded to approximately 6.6% of the total number of shares and voting rights of Nokia.
To the best of our knowledge, Nokia is not directly or indirectly owned or controlled by any other
corporation or any government, and there are no arrangements that may result in a change of
control of Nokia.
Shares owned by the members of the Board and the Group Leadership Team
At 31 December 2024, the members of our Board and the Group Leadership Team held a total
of 4 782 625 shares and ADSs in Nokia, which represented approximately 0.09% of our shares
and total voting rights excluding shares held by the Nokia Group.
Offer and listing details
Our capital consists of shares traded on Nasdaq Helsinki under the symbol “NOKIA” and Euronext
Paris under the symbol “NOKIA”. Our ADSs, each representing one of our shares, are traded on
the NYSE under the symbol “NOK”. The ADSs are evidenced by American Depositary Receipts
(ADRs) issued by Citibank, N.A.
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Articles of Association
Articles of Association
Amendment of our Articles of Association requires a resolution
of the general meeting of shareholders, supported by two-
thirds of the votes cast and two-thirds of the shares
represented at the meeting.
Registration
Nokia Corporation is organized under the laws of the Republic
of Finland and registered in the Finnish Trade Register
under business identity code 0112038-9. Under its current
Articles of Association, Nokia’s object is to research, develop,
manufacture, market, sell and deliver products, software and
services related to, among others, communication and
enterprise networks. The company may also create, acquire
and license intellectual property as well as engage in other
industrial and commercial operations, including securities
trading and other investment activities. The company may
carry on its business operations directly, through subsidiary
companies, affiliate companies and joint ventures.
Directors’ voting powers
Under Finnish law, resolutions of the Board shall be made
by a majority vote. A director shall refrain from taking any part
in the consideration of an agreement between the director
and the company or a third party, or any other issue that may
provide any material benefit to him or her and which may be
contradictory to the interests of the company. Under Finnish
law, there is no age limit requirement for directors, and there
are no requirements under Finnish law that a director must
own a minimum number of shares in order to qualify to act
as a director. However, in accordance with the current
Company policy, approximately 40% of the annual fee payable
to the Board members is paid in Nokia shares purchased from
the market or alternatively by using treasury shares held by
Nokia, and the directors shall retain until the end of their
directorship such number of shares that corresponds to the
number of shares they have received as Board remuneration
during their first three years of service (the net amount
received after deducting those shares used for offsetting any
costs relating to the acquisition of the shares, including taxes).
Share rights, preferences and restrictions
Each share confers the right to one vote at general meetings.
According to Finnish law, a company generally must hold an
Annual General Meeting called by the Board within six months
from the end of the financial year. Additionally, the Board is
obliged to call an Extraordinary General Meeting whenever such
meeting is deemed necessary, or at the request of the auditor
or shareholders representing a minimum of one-tenth of all
outstanding shares. Under our Articles of Association, the
Board is elected at least annually at the Annual General Meeting
of shareholders for a term until the close of the next
Annual General Meeting.
Under Finnish law, shareholders may attend and vote at
general meetings in person or by proxy. It is not customary
in Finland for a company to issue forms of proxy to its
shareholders. Accordingly, Nokia does not do so. However,
registered holders and beneficial owners of ADSs are issued
forms of proxy by the Depositary.
To attend and vote at a general meeting, a shareholder must
be registered in the register of shareholders in the Finnish
book-entry system on or prior to the record date set forth
in the notice of the general meeting. A registered holder
or a beneficial owner of the ADSs, like other beneficial owners
whose shares are registered in the Company’s register
of shareholders in the name of a nominee, may vote with
their shares provided that they arrange to have their name
entered in the temporary register of shareholders for the
general meeting.
The record date is the eighth business day preceding the
meeting. To be entered in the temporary register of
shareholders for the general meeting, a holder of ADSs must
provide the Depositary, or have their broker or other custodian
provide the Depositary, on or before the voting deadline, as
defined in the proxy material issued by the Depositary, a proxy
with the following information: the name, address, and social
security number or another corresponding personal
identification number of the holder of the ADSs,
the number of shares to be voted by the holder of the ADSs
and the voting instructions. The register of shareholders as
of the record date of each general meeting is public until the
end of the respective meeting. Other nominee-registered
shareholders can attend and vote at general meetings by
instructing their broker or other custodian to register the
shareholder in Nokia’s temporary register of shareholders
and give the voting instructions in accordance with the broker’s
or custodian’s instructions.
By completing and returning the form of proxy provided by
the Depositary, a holder of ADSs also authorizes the Depositary
to give notice to us, required by our Articles of Association,
of the holder’s intention to attend the general meeting.
The rights of shareholders are related to the shares as
set forth in the Finnish Companies Act and our Articles of
Association. Neither Finnish law nor our Articles of Association
set limitations on the rights to own Nokia securities, including
the rights of foreign shareholders to hold or exercise voting
rights in the said securities. Amendment of the Articles of
Association requires a decision of the general meeting of
shareholders, supported by two-thirds of the votes cast
and two-thirds of the shares represented at the meeting.
Each of our shares confers equal rights to share in the
distribution of the Company’s funds. Under Finnish law,
dividend entitlement lapses after three years if a dividend
remains unclaimed for that period, in which case the
unclaimed dividend will be recognized as income by Nokia.
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Disclosure obligation of shareholder
ownership or voting power
According to the Finnish Securities Market Act, a shareholder
shall disclose their ownership or voting power to the company
and the Finnish Financial Supervisory Authority when the
ownership or voting power reaches, exceeds or falls below 5,
10, 15, 20, 25, 30, 50 or 90% of all the shares or the voting
rights. The term “ownership” includes ownership by the
shareholder, as well as selected related parties calculated in
accordance with the Finnish Securities Market Act, and
calculating the ownership or voting power covers agreements
or other arrangements, which when concluded would cause the
proportion of voting rights or number of shares to reach,
exceed or fall below the aforementioned limits. Upon receiving
such notice, the company shall disclose it by a stock exchange
release without undue delay.
Purchase obligation
Our Articles of Association require a shareholder whose holding
equals or exceeds one-third or one-half of all of our shares to
purchase the shares of all other shareholders that so request.
A shareholder who becomes subject to the purchase obligation
is also obligated to purchase any subscription rights, stock
options or convertible bonds issued by the company if so
requested by the holder. The purchase price of the shares
under our Articles of Association is the higher of: (a) the
weighted average trading price of the shares on Nasdaq
Helsinki during the ten business days prior to the day on which
we have been notified by the purchaser that its holding has
reached or exceeded the threshold referred to above or, in the
absence of such notification or its failure to arrive within the
specified period, the day on which our Board otherwise
becomes aware of this; or (b) the average price, weighted by
the number of shares, which the purchaser has paid for the
shares it has acquired during the last 12 months preceding the
date referred to in (a).
Under the Finnish Securities Market Act, a shareholder whose
voting power exceeds 30% or 50% of the total voting rights
in a company shall, within one month, offer to purchase the
remaining shares of the company, as well as any other rights
entitling to the shares issued by the company, such as
subscription rights, convertible bonds or stock options issued
by the company. The purchase price shall be the market price
of the securities in question. Subject to certain exceptions,
the market price is determined on the basis of the highest
price paid for the security during the preceding six months
by the shareholder or any party in close connection to the
shareholder. Subject to certain exceptions, if the shareholder
or any related party has not during the six months preceding
the offer acquired any securities that are the target for the
offer, the market price is determined based on the average
of the prices paid for the security in public trading during the
preceding three months weighted by the volume of trade.
Under the Finnish Companies Act, a shareholder whose holding
exceeds nine-tenths of the total number of shares or voting
rights in a company has both the right and, upon a request
from the minority shareholders, the obligation to purchase all
the shares of the minority shareholders for the then current
market price. The market price is determined, among other
things, on the basis of the recent market price of the shares.
The purchase procedure under the Finnish Companies Act
differs, and the purchase price may differ, from the purchase
procedure and price under the Finnish Securities Market Act, as
discussed above. However, if the threshold of nine-tenths has
been exceeded through either a mandatory or a voluntary
public offer pursuant to the Finnish Securities Market Act, the
market price under the Finnish Companies Act is deemed to be
the price offered in the public offer, unless there are specific
reasons to deviate from it.
Pre-emptive rights
In connection with any offering of shares, the existing
shareholders have a pre-emptive right to subscribe for
shares offered in proportion to the amount of shares in
their possession. However, a general meeting of shareholders
may vote, by a majority of two-thirds of the votes cast and
two-thirds of the shares represented at the meeting, to waive
this pre-emptive right provided that, from the company’s
perspective, weighty financial grounds exist.
Monitoring of Foreign Corporate
Acquisitions
Under the Finnish Act on the Monitoring of Foreign Corporate
Acquisitions (2012/172 as amended), a notification to the
Ministry of Economic Affairs and Employment is required for a
non-resident of Finland, directly or indirectly, when acquiring
one-tenth or more of the voting power or corresponding
factual influence in a company. The Ministry of Economic Affairs
and Employment has to confirm the acquisition unless the
acquisition would jeopardize important national interests, in
which case the matter is referred to the Council of State. If the
company in question is operating in the defense sector, an
approval by the Ministry of Economic Affairs and Employment is
required before the acquisition is made. These requirements
are not applicable if, for instance, the voting power is acquired
in a share issue that is proportional to the holder’s ownership
of the shares. Moreover, the requirements do not apply to
residents of countries in the European Economic Area or
EFTA countries, except where at least one-tenth of shares
or other controlling right in such resident are held by a party
not resident in the European Economic Area or EFTA.
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Risk factors
Shareholders and potential investors should carefully
review the following risk factors, in addition to other
information contained in this report. The risks and
risk factors described below could, either individually
or collectively, adversely affect our business,
competitiveness, market share, results of operations,
profitability, financial condition, liquidity, reputation,
brand and share price. The risk factors described below
should not be construed as exhaustive. There may be
additional risks that are unknown to us, and other risks
currently believed to be immaterial that could turn
out to be material.
For a more detailed description of legal proceedings to
which we are a party, refer to Note 6.1. Commitments,
contingencies and legal proceedings, of our consolidated
financial statements. This report also contains forward-looking
statements that involve risks and uncertainties. Unless
otherwise indicated or the context otherwise requires,
references in these risk factors to “Nokia”, the “Nokia Group”,
“Group”, “we”, “us” and “our” mean Nokia’s consolidated
operating segments. Certain risks or events may be more
prevalent with respect to the Group or a certain business
group, business or part of the Group.
Cost and performance remain the top priorities for our
customers. Our capability to compete and remain a leading
provider of technology, software and services in the industries
and markets in which we operate is dependent on multiple
external and internal factors, partially outside our control,
including such as:
Risks related to our strategy and its execution
■
Sustained traffic growth in customers’ networks,
introduction of new use cases and low-latency services to
drive the demand for our products and services;
■
Reaching certain technology limits in key technologies or
adoption of unforeseen disruptive technologies by our
competitors that might change demand patterns for our
products and services and competitive dynamics;
■
Trends, such as cloudification, Open RAN and openness in
general, virtualization and disaggregation with potential
impact on our portfolio of products and services, competitive
landscape, business models and our margin profile;
■
The degree our investments, including venture funds,
result in technologies, products or services that achieve
or retain broad or timely market acceptance, answer to
the expanding needs or preferences of our customers
or consumers, or in break-through innovations, research
assets and intellectual property that we could otherwise
utilize for value creation;
■
Our success in acquiring or divesting businesses and
technologies, such as the acquisition of Infinera, integrating
acquisitions and transitioning divestments, such as the sale
of the Submarine Networks business, entering into licensing
arrangements, minority investments, forming and managing
joint ventures or partnerships and in realizing the
anticipated benefits, synergies, cost savings or efficiencies
from these transactions;
■
Our success in continuing to improve our organizational
and operational structure for increased efficiency and
profitability, executing our business plans and business
models, in identifying and implementing the appropriate
measures to improve cost-efficiency and in managing the
inflationary pressure on costs in order to continue
investments in R&D and future capabilities, including 5G-
Advanced and 6G, enterprise, cloud, artificial intelligence,
security, automation/digitalization and development of
standard essential patents and to reach targeted results,
benefits and other improvements; and
■
Our ability to meet our own sustainability targets, identify,
evaluate and address sustainability related risks and
opportunities appropriately and to comply with stakeholder
and societal expectations and practices and with the
increasing number of regulatory requirements related to
sustainability, including mandatory transparency and
disclosure requirements and considering our reliance on
global supply chains and the challenges and limitations
in the availability of accurate information contributing
to measurement uncertainty in provided quantitative
metrics and monetary amounts in our sustainability
related disclosures.
Risks related to the general economic and
financial market conditions and to the
industries and markets in which we operate
■
We are a global company and our sales and profitability
is dependent on general economic and financial market
conditions, such as the level of inflation and unemployment,
increased global macroeconomic uncertainty, major
currency fluctuations, higher interest rates and financing
costs, and other developments in the economies and
industries where we, our customers and partners/suppliers
operate, including adverse development in the policies
governing international trade or markets such as export
and import controls, including increases in tariffs, and any
geopolitical escalation, such as in the US-China relations,
in tensions in East Asia and ongoing situations with Ukraine
and in the Middle East;
■
The cyclical nature of the markets in which we operate
which are affected by many factors, including, technological
changes and its adoption, competitor behavior, customer
consolidation, the number of competent suppliers,
customers’ spending appetite and purchase behavior,
deployments and rollout timing;
■
Intense competition and price erosion largely driven by
competition challenging the connectivity business models
of our customers;
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Risk factors
Nokia in 2024
■
Our dependency on a limited number of big customers and
large multi-year agreements. Loss of a single customer or
contract, operator consolidation, unfavorable contract
terms or other issues related to a single agreement may
have a material adverse effect on our business and financial
condition;
■
Competitiveness of, or developments regarding, pricing and
agreement terms we offer, such as our ability to pass on
inflationary cost pressure to our pricing, and including
developments with respect to customer financing or
extended payment terms or credit lines that we provide
our customers; and
■
Unwillingness of banks or other institutions to provide
guarantees or financing to our customers or purchase
our receivables could impair our capability to enter new
customers or markets, to mitigate payment risk and to
manage our liquidity.
Risks impacting our competitiveness
■
Our ability to adapt to changing business models, rapid
technological advances and to meet new competition;
■
Our ability to invest effectively and profitably in new
competitive high-quality products, services, such as in
5G-Advanced, Open RAN, 6G, internet of things (IoT), the
cloud or software, upgrades and technologies that have
accurately anticipated the technological, regulatory and
market trends;
■
Our success in the development of new technologies and
services, their rollout and commercialization in a timely
manner and to manage end-to-end costs related to our
portfolio of products and services;
■
Severity of potential inefficiencies, incidents, malfunctions
or disruptions of our information technology systems and
processes, including cybersecurity threats and incidents,
or disruptions of services relying on our or third-party IT.
Our operations rely on efficient and uninterrupted
operation of complex and centralized IT systems, networks
and processes, which are integrated with those of third
parties. Consequently, certain disruptions in IT systems
and networks affecting our external providers could also
have a material adverse effect on our business;
■
Actual or perceived security or privacy breaches, as well as
defects, errors or vulnerabilities in our technology and that
of third-party providers. Our business model relies on
solutions for distribution of services and software or data
storage, which entail inherent risks relating to applicable
regulatory regimes, cybersecurity incidents and other
unauthorized access to network or personal data
or other potential security risks that may adversely affect
our business and/or compromise data confidentiality;
■
Our manufacturing, service creation, customer deliveries,
logistics or supply chain to operate without significant
interruptions or shortages, including the impacts of
geopolitical tensions and open conflicts feeding uncertainty
in the global supply chain, securing availability of resources
and other components to meet the demand, ability to
adapt supply, defects in products or related software or
services and achieving required efficiencies and flexibility.
Additionally, adverse events, such as natural or man-made
disasters, labor or civil unrest or health crises similar to
COVID-19 pandemic, may have a profound impact on our
service delivery, production sites or the production sites
of our suppliers/partners which are geographically
concentrated. It is also possible that our suppliers/partners
may fail to meet our and our customers’ product quality,
health, safety or security requirements or comply with other
regulations or local laws, such as environmental, social or
labor laws; and
■
Our ability to retain, develop, reskill and recruit
appropriately skilled employees and balance the workforce.
Employees may face change fatigue, reduction in
motivation and energy as our efforts to evolve our business
and improve efficiency continue. The market for skilled
employees is increasingly competitive, particularly given
the similar technology trends affecting various industries
simultaneously and increased remote working expanding
the job market for individual employees.
Risks associated with intellectual property
rights and technology licensing
■
Our products, services and business models dependency on
proprietary technologies developed by us and our ability to
create new relevant technologies, products and services
through our R&D, as well as our ability to protect our
innovations and to maintain the strength of our intellectual
property portfolio;
■
Our patent licensing income and other intellectual property-
related revenues being subject to risks and uncertainties
such as our ability to maintain our existing sources of
intellectual property-related revenue and on fair and
reasonable commercial terms, establish new sources of
revenue, protect our intellectual property from
infringement and our ability to monetize our intellectual
property e.g., due to market, regulatory and other
developments, such as the evolving geopolitical
environment, or court rulings in intellectual property-
related litigation and other disputes. A proportionally
significant share of the current patent licensing income is
generated from the smartphone market, which is rapidly
changing and features a limited number of large vendors.
Uncertainty relating to the evolving global regulatory and
standardization landscape relating to intellectual property
is a challenge;
■
To renew existing license agreements and conclude new
license agreements with potential licensees and to protect
our intellectual property, we may and have engaged in legal
actions to enforce our intellectual property rights against
unlawful infringement, outcomes of which are uncertain;
■
While the primary source of Nokia Technologies business
group net sales and profits is licensing of the Nokia patents,
we are also engaged with licensing of technologies and
with other business ventures, including venture fund
investments and technology innovation and incubation.
Expected net sales and profitability for these businesses
may not materialize as planned or, for some of these
businesses, at all; and
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Risk factors continued
Nokia in 2024
■
Our products, services and business models dependency
on technologies that we have developed as well as
technologies that are licensed to us by certain third parties.
As a result, evaluating the rights related to the technologies
we use or intend to use is increasingly challenging, and we
expect to continue to face claims that we have allegedly
infringed third parties’ IPR. The use of these technologies
may also result in increased licensing costs for us,
restrictions on our ability to use certain technologies in
our products and/or costly and time-consuming litigation.
Risks stemming from geopolitical, legal,
regulatory and compliance environment
■
Our global operations, including those in the emerging
markets, being subject to direct and indirect regulation
and being exposed to political, geopolitical and regulatory
developments, such as complex regulatory frameworks,
unfavorable or unpredictable treatment in relation to trade
sanctions, tariffs, tax matters and export controls (such as
the changes in the U.S. and international trade policies,
including the export and import controls and laws,
particularly with regard to China, Mexico and Canada),
exchange controls, and other restrictions, geopolitical
conflicts and military actions, labor unrest, civil unrest,
and public security and safety threats, including potential
further developments related to situations in Ukraine and in
the Middle East and the risks related to tensions in East Asia
and in countries in the Sahel and West Africa, and those
affecting national security, competition law, cyber security,
communications technology, supply chains, environmental,
social and governance (ESG) topics including integrity and
anti-corruption;
■
Impact of changes in various existing regulations or in their
application, including rolling back of certain legislative acts
and initiatives, variations in national implementation of EU
legislation and divergence of regulatory frameworks in the
EU, the US and other relevant jurisdictions and emerging
new regulation on current or new technologies, products or
telecommunication and technology sectors in general;
■
Our products, services and operations meeting all relevant
quality, health, safety or security standards and other
recommendations and regulatory requirements globally
and compliance with laws and regulations, such as related
to digital economy, sustainability, responsible AI,
telecommunications and technology, security and privacy,
including network and product security, protection and
transfer of personal data, data access and use;
■
We are subject to litigation, arbitrations, agreement-related
disputes and product liability-related allegations during
normal course of business, which may be disruptive and
expensive. At any given time, we may be subject to
inspections, investigations, claims, and government
proceedings, and the extent and outcome of such
proceedings may be difficult to estimate with any certainty.
We may be subject to material fines, penalties and other
sanctions as a result of such investigations; and
■
Our governance, internal controls and compliance processes
could fail to detect errors or wrongdoings and to prevent
regulatory penalties at corporate level, in operating
subsidiaries and joint ventures. The degree of control and
level of influence over joint ventures, other affiliated
companies where Nokia does not have direct management
control and third parties we engage with, whose
performance we may be held liable for, is limited.
Financial and tax-related uncertainties
■
We have operations in many countries with different tax
laws and rules, which may result in complex tax issues and
disputes. We may be obliged to pay additional taxes as a
result of changes in law, or changes of tax authority practice
or interpretation (possibly with retroactive effect in certain
cases), potentially resulting in a material impact on our
tax burden;
■
Our actual or anticipated performance, among other
factors, could reduce our ability to utilize our tax attributes
and deferred tax assets;
■
We may not have access to sources of funding on favorable
terms, or at all;
■
We may not be able to maintain our investment grade
credit ratings;
■
Due to our global operations, our net sales, costs and
results of operations, as well as the US dollar value of our
dividends and market price of our ADSs, are affected by
exchange rate fluctuations;
■
Our pension and other post-employment benefit
obligations are subject to numerous factors that could
result in a need for increased funding; and
■
Recoverability of the carrying amount of our goodwill,
which could result in significant impairment charges.
Risks associated with ownership of our shares
■
Uncertainty of the amount of dividend and/or repayment
of capital and other profit distributions such as share
buybacks to shareholders for each financial period and
which depend, such as but not limited to, on available cash
balances, expected cash flow generation, anticipated cash
needs, retained earnings, the results of our operations and
our financial condition, terms of outstanding indebtedness
as well as other relevant factors such as restrictions,
prohibitions or limitations imposed by applicable laws;
■
Our share and/or ADS price may be volatile and could be
subject to fluctuations in response to various factors,
some of which are beyond our control; and
■
Requirement for non-Finnish shareholders to provide
detailed information to obtain advantageous withholding
tax treatment for dividends.
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Risk factors continued
Nokia in 2024
Significant subsequent events
Change of President and CEO
On 10 February 2025, Nokia announced its President and CEO,
Pekka Lundmark, will step down effective 31 March 2025. The
Board of Directors has appointed Justin Hotard as the next
President and CEO. He will start in his new role on 1 April 2025.
Mr. Lundmark will stay on as an advisor to Mr. Hotard until the
end of the year to ensure a smooth transition.
Mr. Hotard joins Nokia with more than 25 years’ experience
with global technology companies, driving innovation,
technology leadership and delivering revenue growth. He
currently leads the Data Center & AI Group at Intel. Prior to
this role, he held several leadership roles at large technology
companies, including Hewlett Packard Enterprise and
NCR Corporation.
Infinera acquisition
On 28 February 2025, Nokia completed the acquisition of
Infinera Corporation (Infinera), pursuant to the definitive
agreement announced on 27 June 2024. Infinera, the San Jose
based global supplier of innovative open optical networking
solutions and advanced optical semiconductors, has become
part of the Nokia group effective as of the closing with Nokia
holding 100% of its equity and voting rights. The acquisition
will significantly improve Nokia’s scale and profitability in optical
networks, and accelerate Nokia’s growth strategy in data
centers and strengthen its presence both in North America and
with webscale customers.
The aggregated consideration transferred of EUR 1.7 billion
is a combination of cash of EUR 1.1 billion and Nokia shares
in the form of American Depository Shares of EUR 0.6 billion,
corresponding to 127 434 986 shares. Additionally, the
acquisition resulted in a make whole conversion for Infinera’s
convertible senior notes in line with relevant bond indentures.
Following the ongoing conversion and subsequent observation
period for Nokia stock price, any surrendered notes are
expected to be settled in cash during the second quarter
of 2025.
Nokia will report the acquired business as part of its Network
Infrastructure segment.
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Nokia in 2024
Key ratios
Earnings per share (basic)
Profit/(loss) attributable to equity holders of the parent
Weighted average number of shares outstanding during the year
Earnings per share (diluted)
Profit/(loss) attributable to equity holders of the parent adjusted for the effect of dilution
Adjusted weighted average number of shares during the year
P/E ratio
Closing share price at 31 December
Earnings per share (basic) for continuing operations
Payout ratio
Proposed dividend per share
Earnings per share (basic) for continuing operations
Dividend yield %
Proposed dividend per share
Closing share price at 31 December
Shareholders’ equity per share
Capital and reserves attributable to equity holders of the parent
Number of shares at 31 December – number of treasury shares at 31 December
Market capitalization
(Number of shares at 31 December – number of treasury shares at 31 December) x closing share price at 31 December
Share turnover %
Number of shares traded during the year
Average number of shares during the year
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Key ratios
Nokia in 2024
Alternative performance
measures
Certain financial measures presented in this report are not measures of financial performance,
financial position or cash flows defined in IFRS Accounting Standards. As these measures are
not defined in IFRS Accounting Standards, they may not be directly comparable with financial
measures used by other companies, including those in the same industry. The primary rationale
for presenting these measures is that the management uses these measures in assessing
the financial performance of Nokia and believes that these measures provide meaningful
supplemental information on the underlying business performance of Nokia. These financial
measures should not be considered in isolation from, or as a substitute for, financial information
presented in compliance with IFRS Accounting Standards.
Return on capital employed %
Definition
Return on capital employed is defined as Profit before tax + Interest expense on interest-
bearing liabilities / Average capital and reserves attributable to equity holders of the parent +
average non-controlling interests + average interest-bearing liabilities.
Purpose
Return on capital employed indicates how efficiently Nokia uses its capital to generate profits.
Composition of return on capital employed %:
EURm
2024
2023
2022
Profit before tax
2 091
1 469
2 169
Interest expense on interest-bearing liabilities
209
201
102
Total
2 300
1 670
2 271
Average capital and reserves attributable to equity holders
of the parent(1)
20 597
20 935
19 347
Average non-controlling interests(1)
91
92
98
Average interest-bearing liabilities(1)
4 040
4 334
4 565
Total capital employed
24 728
25 361
24 010
Return on capital employed %
9.3%
6.6%
9.5%
(1)
Calculated as the average of opening and closing balance for the year as presented in the consolidated statement of financial
position. Refer to the consolidated financial statements.
Return on shareholders’ equity %
Definition
Return on shareholders’ equity is defined as Profit/(loss) for the year attributable to equity
holders of the parent / Average capital and reserves attributable to equity holders of the parent.
Purpose
Return on shareholders’ equity indicates how efficiently Nokia uses the capital invested by its
shareholders to generate profits.
Composition of return on shareholders’ equity %:
EURm
2024
2023
2022
Profit for the year attributable to equity holders of the
parent
1 277
665
4 250
Average capital and reserves attributable to equity holders
of the parent(1)
20 597
20 935
19 347
Return on shareholders’ equity %
6.2 %
3.2 %
22.0 %
(1)
Calculated as the average of opening and closing balance for the year as presented in the consolidated statement of financial
position. Refer to the consolidated financial statements.
Equity ratio %
Definition
Equity ratio % is defined as Total capital and reserves attributable to equity holders of the
parent + non-controlling interests / Total assets.
Purpose
Equity ratio indicates the proportion of assets financed by the capital provided by the equity
holders of the parent to the total assets of Nokia.
Composition of equity ratio %:
EURm
2024
2023
2022
Total capital and reserves attributable to equity holders of
the parent
20 657
20 537
21 333
Non-controlling interests
90
91
93
Shareholders’ equity
20 747
20 628
21 426
Total assets
39 149
39 860
42 943
Equity ratio %
53.0 %
51.8 %
49.9 %
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Alternative performance measures
Nokia in 2024
Total cash and interest-bearing financial investments
Definition
Total cash and interest-bearing financial investments consist of cash and cash equivalents,
current interest-bearing financial investments and non-current interest-bearing financial
investments.
Purpose
Total cash and interest-bearing financial investments is used to indicate funds available to
Nokia to run its current and invest in future business activities as well as provide return for
security holders.
Composition of total cash and interest-bearing financial investments:
EURm
2024
2023
2022
Cash and cash equivalents
6 623
6 234
5 467
Current interest-bearing financial investments
1 661
1 565
3 080
Non-current interest-bearing financial investments
457
715
697
Total cash and interest-bearing financial investments
8 741
8 514
9 244
Net cash and interest-bearing financial investments
Definition
Net cash and interest-bearing financial investments equals total cash and interest-bearing
financial investments less long-term and short-term interest-bearing liabilities.
Purpose
Net cash and interest-bearing financial investments is used to indicate Nokia’s liquidity position
after cash required to settle the interest-bearing liabilities.
Composition of net cash and interest-bearing financial investments:
EURm
2024
2023
2022
Total cash and interest-bearing financial investments
Cash and cash equivalents
6 623
6 234
5 467
Current interest-bearing financial investments
1 661
1 565
3 080
Non-current interest-bearing financial investments
457
715
697
Interest-bearing liabilities
Long-term interest-bearing liabilities
(2 918)
(3 637)
(4 249)
Short-term interest-bearing liabilities
(969)
(554)
(228)
Net cash and interest-bearing financial investments
4 854
4 323
4 767
Net debt to equity (gearing) %
Definition
Net debt to equity (gearing) % is defined as Interest-bearing liabilities less Total cash and
interest-bearing financial investments / (Total capital and reserves attributable to the equity
holders of the parent + Non-controlling interests).
Purpose
Net debt to equity ratio presents the relative proportion of shareholders’ equity and interest-
bearing liabilities used to finance Nokia’s assets and indicates the leverage of Nokia’s business.
Composition of net debt to equity (gearing) %:
EURm
2024
2023
2022
Interest-bearing liabilities
Long-term interest-bearing liabilities
2 918
3 637
4 249
Short-term interest-bearing liabilities
969
554
228
Total cash and interest-bearing financial investments
Cash and cash equivalents
(6 623)
(6 234)
(5 467)
Current interest-bearing financial investments
(1 661)
(1 565)
(3 080)
Non-current interest-bearing financial investments
(457)
(715)
(697)
Net debt
(4 854)
(4 323)
(4 767)
Total capital and reserves attributable to equity holders of
the parent
20 657
20 537
21 333
Non-controlling interests
90
91
93
Shareholders’ equity
20 747
20 628
21 426
Net debt to equity (gearing) %
(23.4) %
(21.0) %
(22.2) %
Free cash flow
Definition
Free cash flow is defined as Net cash flows from operating activities – purchases of property,
plant and equipment and intangible assets (capital expenditures).
Purpose
Free cash flow is the cash that Nokia generates after investments in property, plant and
equipment and intangible assets, and we believe it provides meaningful supplemental
information as it represents the cash available to service and repay interest-bearing financial
liabilities, including lease liabilities, make investments to grow business and distribute funds to
shareholders. It is a measure of cash generation, working capital efficiency and capital discipline
of the business.
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Alternative performance measures continued
Nokia in 2024
Composition of free cash flow:
EURm
2024
2023
2022
Net cash flows from operating activities
2 493
1 317
1 474
Purchase of property, plant and equipment and intangible
assets (capital expenditures)
(472)
(652)
(601)
Free cash flow
2 021
665
873
Capital expenditure
Definition
Purchases of property, plant and equipment and intangible assets (excluding assets acquired
under business combinations).
Purpose
Capital expenditure is used to describe investments in future profit-generating activities.
Composition of capital expenditure:
EURm
2024
2023
2022
Purchase of property, plant and equipment and intangible
assets
(472)
(652)
(601)
Capital expenditure
(472)
(652)
(601)
Comparable operating profit
Definition
Comparable operating profit excludes intangible asset amortization and other purchase price
fair value adjustments, goodwill impairments, restructuring-related charges and certain other
items affecting comparability.
Purpose
We believe that our comparable operating profit provides meaningful supplemental information
to both management and investors regarding Nokia’s underlying business performance
by excluding certain items of income and expenses that may not be indicative of Nokia’s
business operating results. Comparable operating profit is used also in determining
management remuneration.
Composition of comparable operating profit:
EURm
2024
2023
2022
Operating profit
1 999
1 661
2 299
Restructuring and associated charges
445
356
177
Amortization of acquired intangible assets
314
341
397
Divestment of associates
(190)
—
—
Impairment and write-off of assets, net of reversals
89
25
97
Divestment of businesses
(67)
(20)
—
Costs associated with country exit
—
(49)
98
Other
29
23
8
Comparable operating profit
2 619
2 337
3 076
Comparable operating margin %
Definition
Comparable operating margin is defined as Comparable operating profit / Net sales.
Purpose
Comparable operating margin is used as a measure of Nokia’s operating profitability as a
percentage of net sales excluding intangible asset amortization and other purchase price fair
value adjustments, goodwill impairments, restructuring-related charges and certain other items
affecting comparability.
As with comparable operating profit, we believe that our comparable operating margin provides
meaningful supplemental information to both management and investors regarding Nokia’s
underlying business performance by excluding certain items of income and expenses that may
not be indicative of Nokia’s business operating results.
Composition of comparable operating margin:
EURm
2024
2023
2022
Comparable operating profit
2 619
2 337
3 076
Net sales
19 220
21 138
23 761
Comparable operating margin %
13.6 %
11.1 %
12.9 %
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Alternative performance measures continued
Nokia in 2024
Financial statements
Consolidated financial statements
205
Consolidated income statement
205
Consolidated statement of comprehensive income
206
Consolidated statement of financial position
207
Consolidated statement of cash flows
208
Consolidated statement of changes in shareholders’
equity
209
Notes to the consolidated
financial statements
210
Section 1:
Basis of preparation
210
1.1. Corporate information
210
1.2. General accounting policies
210
1.3. Use of estimates and critical accounting
judgments
211
1.4. New and amended standards and interpretations
211
Section 2:
Results for the year
212
2.1. Net sales
212
2.2. Segment information
215
2.3. Operating expenses and other operating income
217
2.4. Financial income and expenses
218
2.5. Income taxes
219
2.6. Discontinued operations
222
2.7. Earnings per share
223
Section 3:
Compensation and benefits
224
3.1. Summary of personnel expenses
224
3.2. Remuneration of key management
224
3.3. Share-based payments
226
3.4. Pensions and other post-employment benefits
228
Section 4:
Operating assets and liabilities
235
4.1. Goodwill and intangible assets
235
4.2. Property, plant and equipment
238
4.3. Leases
239
4.4. Inventories
240
4.5. Trade receivables and other customer-related
balances
240
4.6. Other receivables and liabilities
242
4.7. Provisions
243
Section 5:
Capital and financial items
244
5.1. Equity
244
5.2. Financial assets and liabilities
248
5.3. Derivative and firm commitment assets and
liabilities
252
5.4. Financial risk management
255
Section 6:
Other information
262
6.1. Commitments, contingencies and legal
proceedings
262
6.2. Group companies
264
6.3. Significant partly-owned subsidiaries
268
6.4. Related party transactions
269
6.5. Subsequent events
269
Parent Company financial statements
270
Notes to the Parent Company financial
statements
273
Signing of the Annual Accounts, the
Review of the Board of Directors and
the Sustainability Statement 2024
283
Auditor’s report
284
Auditor’s ESEF assurance report
288
Assurance report on the
Sustainability Statement
289
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Nokia in 2024
EURm
Note
2024
2023
2022
Net sales
2.1, 2.2
19 220
21 138
23 761
Cost of sales
2.3
(10 356)
(12 592)
(13 660)
Gross profit
8 864
8 546
10 101
Research and development expenses
2.3
(4 512)
(4 277)
(4 503)
Selling, general and administrative expenses
2.3
(2 890)
(2 878)
(2 956)
Other operating income
2.3
432
167
95
Other operating expenses
2.3
105
103
(438)
Operating profit
1 999
1 661
2 299
Share of results of associates and joint ventures
6.4
7
(39)
(26)
Financial income
2.4
405
426
178
Financial expenses
2.4
(320)
(579)
(282)
Profit before tax
2 091
1 469
2 169
Income tax (expense)/benefit
2.5
(380)
(820)
2 033
Profit from continuing operations
1 711
649
4 202
(Loss)/profit from discontinued operations
2.6
(427)
30
57
Profit for the year
1 284
679
4 259
Attributable to:
Equity holders of the parent
1 277
665
4 250
Non-controlling interests
7
14
9
Earnings per share attributable to equity holders of the parent
2.7
EUR
EUR
EUR
Basic
Profit from continuing operations
0.31
0.11
0.75
Profit for the year
0.23
0.12
0.76
Diluted
Profit from continuing operations
0.31
0.11
0.74
Profit for the year
0.23
0.12
0.75
In June 2024, Nokia classified its Submarine Networks business as a discontinued operation, refer to Note 2.6. Discontinued operations for further details. The comparative information
for 2023 and 2022 presented in the consolidated income statement and disclosed in the related notes has been recast on the same basis.
The notes are an integral part of these consolidated financial statements.
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Consolidated income statement
For the year ended 31 December
Nokia in 2024
EURm
Note
2024
2023
2022
Profit for the year
1 284
679
4 259
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans
408
(343)
(424)
Income tax related to items that will not be reclassified to profit or loss
2.5
(85)
61
77
Total of items that will not be reclassified to profit or loss
323
(282)
(347)
Items that may be reclassified to profit or loss
Translation differences
Exchange differences on translating foreign operations
615
(554)
696
Transfer to income statement
(78)
19
14
Net investment hedges
Net fair value (losses)/gains
(40)
135
(127)
Cash flow and other hedges
Net fair value gains/(losses)
23
(24)
(15)
Transfer to income statement
(2)
(37)
98
Financial assets at fair value through other comprehensive income
Net fair value gains/(losses)
83
(110)
(264)
Transfer to income statement
(64)
120
218
Other increase/(decrease), net
3
(4)
(3)
Income tax related to items that may be reclassified to profit or loss
2.5
8
(10)
(21)
Total of items that may be reclassified to profit or loss
548
(465)
596
Other comprehensive income/(loss), net of tax
871
(747)
249
Total comprehensive income/(loss) for the year
2 155
(68)
4 508
Attributable to:
Equity holders of the parent
Continuing operations
2 624
(91)
4 394
Discontinued operations
(477)
13
106
Total
2 147
(78)
4 500
Non-controlling interests
8
10
8
The notes are an integral part of these consolidated financial statements.
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Consolidated statement of comprehensive income
For the year ended 31 December
Nokia in 2024
ASSETS
Non-current assets
Goodwill
4.1
5 736
5 504
Other intangible assets
4.1
802
1 086
Property, plant and equipment
4.2
1 362
1 951
Right-of-use assets
4.3
758
906
Investments in associated companies and joint ventures
6.4
124
88
Non-current interest-bearing financial investments
5.2, 5.4
457
715
Other non-current financial assets
5.2, 5.4
1 182
1 100
Defined benefit pension assets
3.4
6 932
6 258
Deferred tax assets
2.5
3 599
3 873
Other non-current receivables
4.6
210
213
Total non-current assets
21 162
21 694
Current assets
Inventories
4.4
2 163
2 719
Trade receivables
4.5, 5.2, 5.4
5 248
4 921
Contract assets
4.5
694
1 136
Current income tax assets
2.5
202
307
Other current receivables
4.6
767
764
Current interest-bearing financial investments
5.2, 5.4
1 661
1 565
Other current financial and firm commitment assets
5.2, 5.3, 5.4
629
441
Cash and cash equivalents
5.2, 5.4
6 623
6 234
Total current assets
17 987
18 087
Assets held for sale
—
79
Total assets
39 149
39 860
EURm
Note
2024
2023
SHAREHOLDERS’ EQUITY AND LIABILITIES
Equity
Share capital
246
246
Share premium
734
628
Treasury shares
(431)
(352)
Translation differences
263
(249)
Fair value and other reserves
3 963
3 605
Reserve for invested unrestricted equity
13 926
15 255
Retained earnings
1 956
1 404
Total shareholders’ equity
20 657
20 537
Non-controlling interests
90
91
Total equity
5.1
20 747
20 628
Non-current liabilities
Long-term interest-bearing liabilities
5.2, 5.3, 5.4
2 918
3 637
Long-term lease liabilities
5.4
664
799
Defined benefit pension and post-employment liabilities
3.4
2 083
2 299
Deferred tax liabilities
2.5
562
725
Contract liabilities
4.5
185
210
Other non-current liabilities
4.6
117
111
Provisions
4.7
479
518
Total non-current liabilities
7 008
8 299
Current liabilities
Short-term interest-bearing liabilities
5.2, 5.3, 5.4
969
554
Short-term lease liabilities
5.4
199
198
Other financial and firm commitment liabilities
5.2, 5.3, 5.4
1 668
830
Contract liabilities
4.5
1 506
2 157
Current income tax liabilities
2.5
207
203
Trade payables
5.2, 5.4
3 213
3 423
Other current liabilities
4.6
2 883
2 824
Provisions
4.7
749
744
Total current liabilities
11 394
10 933
Total liabilities
18 402
19 232
Total shareholders’ equity and liabilities
39 149
39 860
EURm
Note
2024
2023
The notes are an integral part of these consolidated financial statements.
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Consolidated statement of financial position
At 31 December
Nokia in 2024
Cash flow from operating activities
Profit for the year
1 284
679
4 259
Adjustments, total(1)
2 157
2 559
(446)
Change in net working capital(2)
(569)
(1 282)
(1 843)
Cash flows from operations
2 872
1 956
1 970
Interest received
226
178
65
Interest paid
4.3, 5.2
(263)
(241)
(180)
Income taxes paid, net
(342)
(576)
(381)
Net cash flows from operating activities
2 493
1 317
1 474
Cash flow from investing activities
Purchase of property, plant and equipment and intangible assets
(472)
(652)
(601)
Proceeds from sale of property, plant and equipment and intangible assets
97
189
33
Acquisition of businesses, net of cash acquired
(37)
(19)
(20)
Proceeds from disposal of businesses, net of cash disposed
(29)
17
—
Proceeds from disposal of shares in associated companies
259
8
3
Purchase of interest-bearing financial investments
(924)
(1 855)
(3 595)
Proceeds from interest-bearing financial investments
1 138
3 382
2 397
Purchase of other financial assets
(280)
(83)
(115)
Proceeds from other financial assets
70
34
49
Other
61
22
(31)
Net cash flows (used in)/from investing activities
(117)
1 043
(1 880)
Cash flow from financing activities
Acquisition of treasury shares
5.1
(680)
(300)
(300)
Proceeds from long-term borrowings
5.4
101
496
8
Repayment of long-term borrowings
5.4
(462)
(798)
(2)
(Repayment of)/proceeds from short-term borrowings
5.4
(6)
(40)
27
Payment of principal portion of lease liabilities
4.3, 5.4
(233)
(239)
(217)
Dividends paid
5.1
(723)
(621)
(353)
Net cash flows used in financing activities
(2 003)
(1 502)
(837)
Translation differences
16
(91)
19
Net increase/(decrease) in cash and cash equivalents
389
767
(1 224)
Cash and cash equivalents at 1 January
6 234
5 467
6 691
Cash and cash equivalents at 31 December
6 623
6 234
5 467
The consolidated statement of cash flows combines cash flows from both continuing and discontinued operations.
The notes are an integral part of these consolidated financial statements.
EURm
Note
2024
2023
2022
(1) Adjustments
EURm
2024
2023
2022
Depreciation and amortization
1 014 1 087 1 140
Share-based payments
241
202
149
Impairment charges
611
25
152
Restructuring charges
388
316
125
Gain on sale of businesses and associated
companies
(286)
(19)
(5)
Gain on sale of property, plant and
equipment
(94)
(143)
(30)
(Gain)/loss from other financial assets
(47)
56
(27)
Financial income and expenses
(78)
148
28
Income tax expense/(benefit)
385
825 (2 030)
Other adjustments, net
23
62
52
Total
2 157 2 559
(446)
Restructuring charges in adjustments represent the non-cash portion recognized in the
consolidated income statement.
(2) Change in net working capital
EURm
2024
2023
2022
(Increase)/decrease in receivables
(364)
304
(451)
Decrease/(increase) in inventories
404
443
(991)
Decrease in non-interest-bearing liabilities
(609) (2 029)
(401)
Total
(569) (1 282) (1 843)
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Consolidated statement of cash flows
For the year ended 31 December
Nokia in 2024
EURm
Note
Share capital
Share premium
Treasury
shares
Translation
differences
Fair value and
other reserves
Reserve for
invested
unrestricted
equity
Retained
earnings/
(accumulated
deficit)
Total
shareholders’
equity
Non-controlling
interests
Total equity
1 January 2022
246
454
(352)
(396)
4 219
15 726
(2 537)
17 360
102
17 462
Profit for the year
4 250
4 250
9
4 259
Other comprehensive income
5.1
565
(314)
(1)
250
(1)
249
Total comprehensive income for the year
—
—
—
565
(314)
—
4 249
4 500
8
4 508
Share-based payments
149
149
149
Settlement of share-based payments
(100)
73
(27)
(27)
Acquisition of treasury shares
5.1
(300)
(12)
(312)
(312)
Cancellation of treasury shares
5.1
300
(300)
—
—
Dividends
5.1
(337)
(337)
(17)
(354)
Total transactions with owners
—
49
—
—
—
(239)
(337)
(527)
(17)
(544)
31 December 2022
246
503
(352)
169
3 905
15 487
1 375
21 333
93
21 426
Profit for the year
665
665
14
679
Other comprehensive loss
5.1
(418)
(300)
(25)
(743)
(4)
(747)
Total comprehensive loss for the year
—
—
—
(418)
(300)
—
640
(78)
10
(68)
Share-based payments
202
202
202
Settlement of share-based payments
(77)
59
(18)
(18)
Acquisition of treasury shares
5.1
(303)
12
(291)
(291)
Cancellation of treasury shares
5.1
303
(303)
—
—
Disposal of subsidiaries
—
(2)
(2)
Dividends
5.1
(611)
(611)
(10)
(621)
Total transactions with owners
—
125
—
—
—
(232)
(611)
(718)
(12)
(730)
31 December 2023
246
628
(352)
(249)
3 605
15 255
1 404
20 537
91
20 628
Profit for the year
1 277
1 277
7
1 284
Other comprehensive income
5.1
512
358
870
1
871
Total comprehensive income for the year
—
—
—
512
358
—
1 277
2 147
8
2 155
Share-based payments
241
241
241
Settlement of share-based payments
(135)
99
(36)
(36)
Acquisition of treasury shares(1)
5.1
(686)
(821)
(1 507)
(1 507)
Cancellation of treasury shares
5.1
607
(607)
—
—
Adjustment to financial liability to acquire non-controlling
interest
(11)
(11)
(11)
Dividends
5.1
(714)
(714)
(9)
(723)
Total transactions with owners
—
106
(79)
—
—
(1 329)
(725)
(2 027)
(9)
(2 036)
31 December 2024
246
734
(431)
263
3 963
13 926
1 956
20 657
90
20 747
(1)
In connection with the share buyback program launched in November 2024, Nokia has recorded a liability and a reduction of reserve for invested unrestricted equity of EUR 821 million to reflect Nokia’s commitment under the agreement with a third-party broker
conducting the share repurchases on Nokia’s behalf. For more information on Nokia’s share buyback programs, refer to Note 5.1. Equity.
The notes are an integral part of these consolidated financial statements.
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Consolidated statement of changes in shareholders’ equity
Nokia in 2024
Section 1
Basis of
preparation
This section describes the general accounting policies
applied in preparation of these consolidated financial
statements, including the basis of presentation
and key consolidation principles. This section also
summarizes the accounting matters that involve
most judgment or estimation uncertainty. The
specific accounting policies as well as details of key
accounting estimates and judgments are provided
in the related notes.
1.1. Corporate information
Nokia Corporation, a public limited liability company
incorporated and domiciled in Helsinki, Finland, is the parent
company (Parent Company or Parent) for all its subsidiaries
(together Nokia or the Group). Nokia is a global provider of
mobile, fixed and cloud network solutions combining hardware,
software and services, as well as licensing of intellectual
property, including patents, technologies and the Nokia brand.
Nokia’s operational headquarters are located in Espoo, Finland.
The shares of Nokia Corporation are listed on the Nasdaq
Helsinki Stock Exchange, the New York Stock Exchange and
the Euronext Paris Stock Exchange.
These consolidated financial statements for the year ended
31 December 2024 were authorized for issuance and filing
by the Board of Directors on 13 March 2025.
1.2. General accounting policies
Basis of presentation and statement of compliance
The consolidated financial statements are prepared in
accordance with IFRS Accounting Standards as issued by
the International Accounting Standards Board (IASB) and as
adopted by the European Union (EU). The consolidated
financial statements also conform to Finnish accounting
and company legislation.
The consolidated financial statements are presented in
millions of euros (EURm), except when otherwise noted,
and are prepared under the historical cost convention,
except when otherwise disclosed in the accounting policies
in the specific notes.
Other information
This paragraph is included in connection with statutory
reporting requirements in Germany. The fully consolidated
German subsidiary, Nokia Solutions and Networks GmbH & Co.
KG, registered in the commercial register of Munich under HRA
88537, has made use of the exemption available under § 264b
and § 291 of the German Commercial Code (HGB).
Principles of consolidation
The consolidated financial statements comprise the financial
statements of the Parent Company, and each of those
companies over which it exercises control. Control over an
entity exists when Nokia is exposed, or has rights, to variable
returns from its involvement with the entity and has the ability
to affect those returns through its power over the entity.
Presumption is that a majority of voting rights results in
control. To support this presumption, Nokia considers all
relevant facts and circumstances in assessing whether it has
power over the entity including voting rights and potential
voting rights, rights to appoint key management personnel
and rights arising from other contractual arrangements.
Consolidation of a subsidiary begins when Nokia obtains
control over the subsidiary and ceases when it loses control
over the subsidiary.
All intercompany transactions are eliminated as part of the
consolidation process. Non-controlling interest represents the
proportion of net profit or loss, other comprehensive income
and net assets in subsidiaries that is not attributable to the
equity holders of the Parent.
Investments in associates and joint ventures
An associate is an entity over which Nokia exercises significant
influence. A joint venture is a type of joint arrangement
whereby the parties that have joint control of the arrangement
have rights to the net assets of the arrangement.
Nokia’s investments in associates and joint ventures are
accounted for using the equity method. Under the equity
method, the investment in an associate or joint venture is
initially recognized at cost. The carrying amount of the
investment is adjusted to recognize changes in Nokia’s share
of net assets of the associate or joint venture since the
acquisition date. Nokia’s share of profits and losses of
associates and joint ventures is reflected in the consolidated
income statement. Any change in other comprehensive income
of associates and joint ventures is presented as part of
Nokia’s other comprehensive income.
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Notes to the consolidated financial statements
Nokia in 2024
Foreign currency translation
Functional and presentation currency
The consolidated financial statements are presented in euro,
the functional and presentation currency of the Parent
Company. The financial statements of all Group companies
are measured using the functional currency, which is the
currency of the primary economic environment in which the
entity operates.
Transactions in foreign currencies
Transactions in foreign currencies are recorded at exchange
rates prevailing at the date of the transaction. For practical
reasons, a rate that approximates the actual rate at the date
of the transaction is often used. Monetary assets and liabilities
denominated in foreign currency are translated at the
exchange rates prevailing at the end of the reporting period.
Foreign exchange gains and losses arising from monetary
assets and liabilities as well as fair value changes of related
hedging instruments are recognized in financial income and
expenses. Unrealized foreign exchange gains and losses related
to non-monetary non-current financial investments are
included in the fair value measurement of these investments
and recognized in other operating income and expenses.
Foreign Group companies
On consolidation, the assets and liabilities of foreign
operations whose functional currency is other than euro are
translated into euro at the exchange rates prevailing at the end
of the reporting period. The income and expenses of these
foreign operations are translated into euro at the average
exchange rates for the reporting period. The exchange
differences arising from translation for consolidation are
recognized as translation differences in other comprehensive
income. On disposal of a foreign operation, the cumulative
amount of translation differences relating to that foreign
operation is reclassified to profit or loss.
1.3. Use of estimates and critical
accounting judgments
The preparation of financial statements requires use of
management judgment in selecting and applying accounting
policies as well as making estimates and assumptions about
the future. These judgments, estimates and assumptions may
have a significant effect on the amounts recognized in the
financial statements.
The estimates and assumptions used in determining the
carrying amounts of assets and liabilities are based on
historical experience, expected outcomes and various other
factors that were available when these financial statements
were prepared, and they are believed to be reasonable under
the circumstances. The estimates and assumptions are
reviewed continually and revised if changes in circumstances
occur, or as a result of new information. As estimates
and assumptions inherently contain a varying degree of
uncertainty, actual outcomes may differ resulting in
adjustments to the carrying amounts of assets and liabilities
in subsequent periods.
The accounting matters listed below are determined to involve
the most difficult, subjective or complex judgments, or are
considered as major sources of estimation uncertainty that
may have a significant risk of resulting in a material adjustment
to the carrying amounts of assets and liabilities within the next
financial year. Please refer to the specific notes for further
information on the key accounting estimates and judgments.
Key accounting estimates and
judgments
Note
Judgment related to recognition
of deferred tax assets
2.5. Income taxes
Judgment related to
classification of Submarine
Networks as a discontinued
operation
2.6. Discontinued
operations
Estimate of pension and other
post-employment benefit
obligations
3.4. Pensions and other
post-employment benefits
1.4. New and amended standards and
interpretations
On 1 January 2024, Nokia adopted the following amendments
to the accounting standards issued by the IASB and endorsed
by the EU:
■
Amendments to IFRS 16 Leases: Lease Liability in a Sale and
Leaseback;
■
Amendments to IAS 1 Presentation of Financial Statements:
Classification of Liabilities as Current or Non-current;
■
Amendments to IAS 1 Presentation of Financial Statements:
Non-current Liabilities with Covenants; and
■
Amendments to IAS 7 Statement of Cash Flows and IFRS 7
Financial Instruments: Disclosures: Supplier Finance
Arrangements.
The amendments had no material impact on the measurement,
recognition or presentation of any items in Nokia’s
consolidated financial statements for 2024.
Nokia has not early adopted any new or amended standards or
interpretations that have been issued but are not yet effective.
The new and amended standards and interpretations issued by
the IASB that are effective in future periods are not expected
to have a material impact on the consolidated financial
statements of Nokia when adopted, except for IFRS 18
Presentation and Disclosure in Financial Statements which
was published in April 2024.
IFRS 18 sets out the requirements for presentation and
disclosures in financial statements and it will replace IAS 1
Presentation of Financial Statements. The new standard is
effective for annual reporting periods beginning on or after
1 January 2027, with earlier application permitted. IFRS 18 is
yet to be endorsed by the EU. Nokia is assessing the impact
of IFRS 18 on its consolidated financial statements but as
IFRS 18 is not changing the recognition and measurement
requirements it is not expected to have significant impact
other than on the presentation of financial information.
Nokia intends to adopt IFRS 18 and other new and amended
standards and interpretations, if applicable, when they become
effective and are endorsed by the EU.
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Section 2
Results for
the year
This section provides details of items presented
in the income statement including disaggregation
of net sales by region and customer type, results of
Nokia’s operating segments, and information
on operating expenses and other operating income.
Additionally, this section contains details of financial
income and expenses and income taxes,
as well as the results of discontinued operations.
The calculation of earnings per share is presented
at the end of this section.
2.1. Net sales
Accounting policies
Nokia accounts for a contract with a customer when the
contract has been approved in writing, which is generally
when both parties are committed to perform their
respective obligations, the rights, including payment terms,
regarding the goods and services to be transferred can be
identified, the contract has commercial substance, and
collection of the consideration to which Nokia expects to
be entitled is probable. Management considers only legally
enforceable rights in evaluating the accounting for contracts
with customers. As such, frame agreements that do not
create legally enforceable rights and obligations are
accounted for based on the issuance of subsequent legally
binding purchase orders under the frame agreements.
A contract modification or a purchase order is accounted
for as a separate contract if the scope of the contract
increases by additional distinct goods or services, and the
price of the contract increases by an amount that reflects
the standalone selling price of those additional goods or
services. In cases where the additional goods or services
are distinct but not sold at a standalone selling price,
the contract modification is accounted for prospectively.
In cases where the additional goods or services are not
distinct, the modification is accounted for through a
cumulative catch-up adjustment.
Nokia recognizes revenue from contracts with customers
to reflect the transfer of promised goods and services to
customers for amounts that reflect the consideration to
which Nokia expects to be entitled in exchange for those
goods and services. The consideration may include a
variable amount, which Nokia estimates based on the most
likely amount. Items causing variability include volume
discounts and sales-based or usage-based royalties. Nokia
includes variable consideration into the transaction price
only to the extent that it is highly probable that a significant
revenue reversal will not occur. The transaction price also
excludes amounts collected on behalf of third parties.
In cases where the timing of payments provides either the
customer or Nokia with a significant benefit of financing,
the transaction price is adjusted for the effect of financing
and the related interest revenue or interest expense
is presented separately from revenue. As a practical expedient,
Nokia does not account for financing components if, at
contract inception, the consideration is expected to be
received within one year before or after the goods or services
have been transferred to the customer.
Nokia enters into contracts with customers consisting of any
combination of hardware, services and intellectual property.
Hardware and software sold by Nokia includes warranty,
which can either be assurance-type for repair of defects
and replacement of hardware recognized as a centralized
warranty provision, or service-type for scope beyond the
repair of defects or for a time period beyond the standard
assurance-type warranty period and considered as a
separate performance obligation within the context of
the contract.
The associated revenue recognized for such contracts
depends on the nature of the underlying goods and services
provided. The promised goods or services in the contract
might include sale of goods, license of intellectual property
and grant of options to purchase additional goods or
services that may provide the customer with a material
right. Nokia conducts an assessment at contract inception
to determine which promised goods and services in a
customer contract are distinct and accordingly identified
as performance obligations.
The standalone selling price of each performance obligation
is determined by considering factors such as the price of
the performance obligation if sold on a standalone basis and
the expected cost of the performance obligation plus a
reasonable margin when price references are not available.
The portion of the transaction price allocated to each
performance obligation is then recognized when the
revenue recognition criteria for that performance obligation
have been met.
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Nokia in 2024
Nokia allocates the transaction price to each distinct
performance obligation on the basis of their standalone
selling prices, relative to the overall transaction price. If a
standalone selling price is not observable, it is estimated.
The transaction price may include a discount or a variable
amount of consideration that is generally allocated
proportionately to all performance obligations in the
contract unless Nokia has observable evidence that the
entire discount relates to only one or more, but not all,
performance obligations in a contract. The amount of
revenue recognized is the amount allocated to the satisfied
performance obligation based on the relative standalone
selling prices. A performance obligation may be satisfied
at a point in time or over time.
As described in Note 4.5. Trade receivables and other
customer-related balances, Nokia presents its customer
contracts in the statement of financial position as either
a contract asset or a contract liability, depending on
the relationship between Nokia’s performance and
the customer’s payment for each individual contract.
Sale of products
Nokia manufactures and sells a range of networking
equipment, covering the requirements of network
operators. Revenue for these products is recognized when
control of the products has transferred, the determination
of which may require judgment. Typically, for standard
equipment sales, control transfers upon delivery. For
more complex solutions, control generally transfers
upon acceptance.
In some arrangements, mainly within the Submarine Networks
business which is presented as a discontinued operation and
was sold in 2024, Nokia’s performance does not create an
asset with an alternative use and Nokia recognizes revenue
over time using the output method, which faithfully depicts the
manner in which the asset is transferred to the customer as
well as Nokia’s enforceable rights to payment for the work
completed to date, including margin. The output measure
selected by Nokia for each contract may vary depending on
the nature of the contract.
Sale of services
Nokia provides services related to the provision of networking
equipment, ranging from managing a customer’s network
and product maintenance services to network installation,
integration and optimization. Revenue for each separate
service performance obligation is recognized as or when the
customer obtains the benefits of Nokia’s performance. Service
revenue is recognized over time for managed and maintenance
services, as in these cases Nokia performs throughout a fixed
contract term and the customer simultaneously receives and
consumes the benefits as Nokia performs. In some cases,
Nokia performs services that are subject to customer
acceptance where revenue is recognized when the customer
acceptance is obtained.
Sale of intellectual property licenses
Nokia provides its customers with licenses to intellectual
property (IP) owned by Nokia by granting software licenses
and rights to benefit from Nokia’s IP in their products.
When a software license is sold, revenue is recognized
upon delivery or acceptance of the software, as Nokia has
determined that each software release is distinct, and the
license is granted for software as it exists when the control
transfers to the customer.
When Nokia grants customers a license to use IP owned by
Nokia, the associated license fee revenue is recognized in
accordance with the substance of the relevant agreements.
In the majority of cases, Nokia retains obligations to
continue to develop and make available to the customer
the latest IP in the licensed assets during the contract term,
and therefore revenue is recognized pro rata over the
period during which Nokia is expected to perform.
Recognition of the revenue as pro rata over the term of the
license is considered the most faithful depiction of Nokia’s
satisfaction of the performance obligation as the IP being
licensed towards the customer includes new inventions
patented by Nokia that are highly interdependent and
interrelated and created through the course of continuous
research and development (R&D) efforts that are relatively
stable throughout the year. In some contracts, Nokia has
no remaining obligations to perform after granting a license
to the initial IP, and licensing fees are non-refundable. In
these cases, revenue is recognized at the beginning of the
license term.
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Revenue disaggregation
Management has determined that Nokia’s geographic areas
are considered as the primary determinants to depict how
the nature, amount, timing and uncertainty of revenue and
cash flows are affected by economic factors. Nokia’s primary
customer base consists of companies that operate on
a country-specific or a regional basis. Although Nokia’s
technology cycle is similar around the world, different countries
and regions are inherently in a different stage of that cycle,
often influenced by macroeconomic conditions specific to
those countries and regions. In addition to Net sales to external
customers by region, the chief operating decision-maker,
as described in Note 2.2. Segment information, also reviews
Net sales by aggregated regions and Net sales by customer
type disclosed in this note.
Each reportable segment, as described in Note 2.2. Segment
information, consists of customers that operate in all
geographic areas. No reportable segment has a specific
revenue concentration in any geographic area other than
Nokia Technologies, which is included within Europe.
Net sales to external customers by region
Net sales to external customers by region are based on the
location of the customer, except for Nokia Technologies IPR
and licensing net sales which are allocated to Europe.
EURm
2024
2023
2022
Americas
6 276
6 779
9 611
Latin America
895
1 046
1 223
North America
5 381
5 733
8 388
APAC
4 549
6 436
5 519
Greater China
1 134
1 303
1 581
India
1 373
2 842
1 290
Rest of APAC
2 042
2 291
2 648
EMEA
8 395
7 923
8 631
Europe
6 362
5 873
6 662
Middle East & Africa
2 033
2 050
1 969
Total
19 220
21 138
23 761
Segment net sales by region
EURm
2024
2023
2022
Network Infrastructure
6 518
6 917
7 897
Americas
2 726
2 813
3 717
APAC
1 426
1 580
1 553
EMEA
2 366
2 524
2 627
Mobile Networks
7 725
9 797
10 671
Americas
2 365
2 618
4 371
APAC
2 461
4 184
3 191
EMEA
2 899
2 995
3 109
Cloud and Network Services
3 022
3 220
3 351
Americas
1 184
1 306
1 368
APAC
649
649
752
EMEA
1 189
1 265
1 231
Nokia Technologies
1 928
1 085
1 595
Group Common and Other(1)
27
119
248
Total
19 220
21 138
23 761
(1)
Includes eliminations of inter-segment revenues.
Net sales by customer type
EURm
2024
2023
2022
Communications service providers
15 085
17 652
19 921
Enterprise
2 180
2 282
1 997
Licensees
1 928
1 085
1 595
Other(1)
27
119
248
Total
19 220
21 138
23 761
(1)
Includes net sales of Radio Frequency Systems (RFS), which had been managed as a
separate entity and was substantially divested in 2024, and certain other items,
such as eliminations of inter-segment revenues. RFS net sales also include revenue
from communications service providers and enterprise customers.
Order backlog
At 31 December 2024, the aggregate amount of the
transaction price allocated to partially or wholly unsatisfied
performance obligations arising from fixed contractual
commitments amounted to EUR 20.0 billion (EUR 22.0 billion
in 2023, of which EUR 1.7 billion related to discontinued
operations sold in 2024). Management has estimated that
these unsatisfied performance obligations will be recognized as
revenue as follows:
2024
2023
Within 1 year
53%
51%
2-3 years
27%
30%
More than 3 years
20%
19%
Total
100%
100%
The estimated timing of the satisfaction of these performance
obligations is subject to change owing to factors beyond
Nokia’s control such as customer and network demand,
market conditions and, in some cases, restrictions imposed
by the weather or other factors impacting project logistics.
Revenue recognized in the reporting period from performance
obligations satisfied (or partially satisfied) in previous periods
(for example, due to changes in transaction price) was
not material.
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Nokia in 2024
2.2. Segment information
Accounting policies
Nokia has four operating and reportable segments for
financial reporting purposes: (1) Network Infrastructure,
(2) Mobile Networks, (3) Cloud and Network Services
and (4) Nokia Technologies. In addition, Nokia provides
net sales disclosure for the following business units
within the Network Infrastructure segment: (i) IP Networks,
(ii) Optical Networks and (iii) Fixed Networks.
The President and CEO is the chief operating decision-
maker monitoring the operating results of segments
for the purpose of assessing performance and making
decisions about resource allocation. Key financial
performance measures of the segments comprise
primarily net sales and segment operating profit.
The evaluation of segment performance and allocation
of resources is primarily based on segment operating
profit which the management believes is the most
relevant measure for this purpose. Segment operating
profit excludes intangible asset amortization and
other purchase price fair value adjustments, goodwill
impairments, restructuring-related charges and certain
other items of income and expenses that may not be
indicative of the business operating results.
Accounting policies of the segments are the same as
those for the Group except for the aforementioned
items of income and expenses that are not allocated to
the segments. Inter-segment revenues and transfers are
accounted for as if the revenues were to third parties,
that is, at current market prices.
Segment descriptions
Network Infrastructure
The Network Infrastructure segment serves communications
service providers, enterprises, webscales and public sector
customers. It comprises the following business units:
(i) IP Networks, which provides IP networks and services
for residential, mobile, enterprise and cloud applications;
(ii) Optical Networks, which provides optical transport
networks for metro, regional and long-haul applications
(iii) Fixed Networks, which provides fiber, fixed wireless access
and copper technologies.
The results of the Submarine Networks business, which were
previously reported as part of Network Infrastructure operating
segment, are presented in discontinued operations in these
consolidated financial statements. For more information on
discontinued operations, refer to Note 2.6. Discontinued
operations.
Mobile Networks
The Mobile Networks segment creates products and services
covering all mobile technology generations. Its portfolio
includes products for radio access networks (RAN) and
microwave radio (MWR) links for transport networks, and
solutions for network management, as well as network
planning, optimization, network deployment and technical
support services.
Cloud and Network Services
Cloud and Network Services segment provides open, fully
automated, and scalable software and solutions that accelerate
the journey of service providers and enterprises to
autonomous networks and new value creation.
Cloud and Network Services segment invests in technologies
that are critical to our customers’ growth: 5G core, secure
autonomous networks, private wireless and industrial edge,
and network APIs. Delivered in a secure, Software-as-a-Service
first model, these solutions help customers capture the
opportunities of digitalization, AI and cloud.
Nokia Technologies
Nokia Technologies segment monetizes Nokia’s intellectual
property, including patents, technologies and the Nokia brand,
building on Nokia’s continued innovation leadership, long-term
investment into research and development, and decades of
driving technology standards development. The majority of net
sales and related costs and expenses attributable to licensing
and patenting the patent portfolio of Nokia is recorded in
Nokia Technologies, while each segment separately records
its own research and development expenses.
Group Common and Other
Despite not being a reportable segment, Nokia also provides
segment-level information for Group Common and Other.
Group Common and Other includes Radio Frequency Systems
which had been managed as a separate entity and was
substantially divested in 2024. In addition, Group Common and
Other includes certain corporate-level and centrally managed
operating expenses, as well as fair value gains and losses on
investments in venture funds, including investments managed
by NGP Capital.
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Segment results
EURm
Network
Infrastructure(1)
Mobile
Networks
Cloud and
Network
Services
Nokia
Technologies
Group
Common and
Other
Eliminations
and
unallocated
items(2)
Nokia Group
2024
Net sales to external customers
6 517
7 721
3 021
1 928
33
—
19 220
Net sales to other segments
1
4
1
—
1
(7)
—
Operating profit/(loss)
761
409
249
1 514
(314)
(620)
1 999
Share of results of associated companies and
joint ventures
—
1
7
(1)
—
—
7
Financial income and expenses
85
Profit before tax
2 091
Other segment items
Depreciation and amortization
(167)
(369)
(75)
(32)
(16)
(314)
(973)
2023
Net sales to external customers
6 919
9 791
3 219
1 085
124
—
21 138
Net sales to other segments
(2)
6
1
—
6
(11)
—
Operating profit/(loss)
1 016
723
255
734
(391)
(676)
1 661
Share of results of associated companies and
joint ventures
—
(30)
7
12
—
(28)
(39)
Financial income and expenses
(153)
Profit before tax
1 469
Other segment items
Depreciation and amortization
(171)
(366)
(81)
(39)
(14)
(341)
(1 012)
2022
Net sales to external customers
7 894
10 658
3 350
1 583
276
—
23 761
Net sales to other segments
3
13
1
12
19
(48)
—
Operating profit/(loss)
1 069
940
177
1 208
(318)
(777)
2 299
Share of results of associated companies and
joint ventures
—
(11)
6
(8)
—
(13)
(26)
Financial income and expenses
(104)
Profit before tax
2 169
Other segment items
Depreciation and amortization
(176)
(347)
(91)
(34)
(28)
(397)
(1 073)
(1)
Includes IP Networks net sales of EUR 2 583 million (EUR 2 606 million in 2023 and EUR 3 063 million in 2022), Optical Networks net sales of EUR 1 636 million (EUR 1 942 million
in 2023 and EUR 1 891 million in 2022) and Fixed Networks net sales of EUR 2 299 million (EUR 2 369 million in 2023 and EUR 2 943 million in 2022).
(2)
Unallocated items comprise costs related to intangible asset amortization, restructuring-related charges, divestments of businesses and associates, impairments and certain
other items.
Material reconciling items between total segment
operating profit and operating profit for the Group
EURm
2024
2023
2022
Total segment operating profit
2 619
2 337
3 076
Restructuring and associated
charges
(445)
(356)
(177)
Amortization of acquired
intangible assets
(314)
(341)
(397)
Divestment of associates
190
—
—
Impairment and write-off of
assets, net of reversals
(89)
(25)
(97)
Divestment of businesses
67
20
—
Costs associated with country exit
—
49
(98)
Other
(29)
(23)
(8)
Operating profit for the Group
1 999
1 661
2 299
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Nokia in 2024
Information by geographies and customer
concentration
Net sales to external customers by country
EURm
2024
2023
2022
Finland
2 060
1 192
1 697
United States
5 032
5 328
7 911
India
1 366
2 832
1 280
France
751
750
788
Other
10 011 11 036 12 085
Total
19 220 21 138 23 761
Net sales to external customers by country are based on the
location of the customer, except for Nokia Technologies IPR
and licensing net sales which are allocated to Finland.
Major customers
As is typical for our industry, Nokia’s net sales are largely driven
by multi-year customer agreements with a limited number of
significant customers. In 2024 and in 2023, no single customer
represented more than 10% of net sales. In 2022, net sales to
the largest customer were 11% of net sales to external
customers. Net sales to the largest customer were reported by
Network Infrastructure, Mobile Networks and Cloud and
Network Services, as well as Group Common and Other.
Non-current assets by country
EURm
2024
2023
Finland
1 476
1 549
United States
4 493
4 383
France
1 647
2 139
Other
1 042
1 376
Total
8 658
9 447
Non-current assets consists of goodwill, other intangible
assets, property, plant and equipment and right-of-use assets.
2.3. Operating expenses and other
operating income
Accounting policies
Nokia presents its income statement based on the
function of expenses as it considers this to provide more
relevant information about its financial performance.
Information about the nature of expenses is provided
in the notes. Certain items of income and expenses,
such as gains and losses from venture funds, are
presented as other operating income and expenses
as Nokia considers these items to be related to its
operating activities but not to any specific functions.
Government grants received as compensation for
expenses incurred are recognized as a reduction of
the related expenses except for certain non-recurring
grants that are recognized as other operating income.
Government grants received in the form of R&D tax
credits are recognized as a reduction of R&D expenses if
the tax credit relates to the R&D expenditures incurred
by Nokia and the tax credit is reimbursed in cash by the
government in cases where Nokia is not able to offset it
against its income tax payable. R&D tax credits that do
not meet both conditions are recognized as income
tax benefit.
Expenses by nature
EURm
2024
2023
2022
Personnel expenses
7 563
7 294
7 732
Material and customer contract
related expenses
7 660
9 947 10 748
Depreciation and amortization
973
1 012
1 073
IT services
370
388
368
Impairment charges
97
24
90
Other
990
979
1 546
Total operating expenses
17 653 19 644 21 557
Operating expenses include government grant income and R&D
tax credits of EUR 160 million (EUR 160 million in 2023 and
EUR 133 million in 2022) most of which have been recognized
as a deduction against research and development expenses.
Restructuring charges by function(1)
EURm
2024
2023
2022
Cost of sales
155
153
85
Research and development expenses
135
61
37
Selling, general and administrative
expenses
139
137
46
Total restructuring charges
429
351
168
(1)
Restructuring charges include defined benefit plan curtailment income and expenses.
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Nokia in 2024
Other operating income
EURm
2024
2023
2022
Gain on sale of associated companies
192
—
5
Gain on sale of property, plant and equipment
95
139
2
Gain on sale of businesses
70
29
—
Gains/(losses) from venture funds
47
(56)
27
Subsidies and government grants
—
—
20
Other
28
55
41
Total
432
167
95
Other operating expenses
EURm
2024
2023
2022
Changes in provisions
(8)
37
(134)
Impairment of disposal groups
—
—
(72)
Foreign exchange gains/(losses) on hedging forecasted sales and
purchases
23
94
(107)
Expected credit losses on trade receivables(1)
122
(5)
(106)
Other
(32)
(23)
(19)
Total
105
103
(438)
(1)
In 2024, includes a decrease in loss allowance of EUR 111 million related to credit-impaired trade receivables for which payments
were received. Refer to note 4.5 Trade receivables and other customer-related balances for further details.
2.4. Financial income and expenses
Financial income
EURm
2024
2023
2022
Interest income on financial investments
269
199
68
Interest income on financing components of other contracts
31
21
13
Net interest income on defined benefit plans
176
188
93
Other financial income(1)(2)
(71)
18
4
Total
405
426
178
(1)
In 2024, includes an expense of EUR 5 million (expense of EUR 2 million in 2023 and income of EUR 11 million in 2022) due to a
change in the fair value of the financial liability related to Nokia Shanghai Bell. Refer to Note 6.3. Significant partly-owned subsidiaries.
(2)
In 2024, includes EUR 79 million (EUR 0 million in 2023 and EUR 0 million in 2022) fair value loss on equity investment in Vodafone
Idea.
Financial expenses
EURm
2024
2023
2022
Interest expense on interest-bearing liabilities
(209)
(201)
(102)
Negative interest on financial investments
(1)
(3)
(27)
Interest expense on financing components of other contracts(1)
(86)
(126)
(66)
Interest expense on lease liabilities
(31)
(27)
(25)
Net fair value (losses)/gains on hedged items under fair value hedge
accounting
(13)
(93)
262
Net fair value gains/(losses) on hedging instruments under fair value
hedge accounting
10
89
(265)
Net foreign exchange gains/(losses)
16
(192)
24
Other financial expenses(2)
(6)
(26)
(83)
Total
(320)
(579)
(282)
(1)
In 2024, includes EUR 63 million (EUR 106 million in 2023 and EUR 46 million in 2022) related to the sale of receivables.
(2)
In 2024, includes a decrease in loss allowance of EUR 7 million (increase in loss allowance of EUR 9 million in 2023 and impairment
of EUR 61 million in 2022) related to credit-impaired customers financing-related loan receivables.
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2.5. Income taxes
Accounting policies
Income tax expense comprises current tax and deferred tax.
Tax is recognized in the income statement except to the
extent that it relates to items recognized in other
comprehensive income, or directly in equity, in which case
the related tax is recognized in other comprehensive income
or equity, respectively.
Current taxes are calculated based on the results of the
Group companies in accordance with local tax laws and using
tax rates that are enacted or substantively enacted at the
reporting date. Corporate taxes withheld at the source of
the income on behalf of Group companies are accounted
for as income taxes when determined to represent a tax on
net income.
Deferred tax assets and liabilities are determined using the
balance sheet liability method for all temporary differences
arising between the tax bases of assets and liabilities and
their carrying amounts in the statement of financial
position. Deferred tax assets are recognized to the extent
it is probable that future taxable profit will be available
against which the unused tax losses, unused tax credits
and deductible temporary differences can be utilized in
the relevant jurisdictions. Deferred tax assets are assessed
for realizability at each reporting date. When facts and
circumstances indicate it is no longer probable that
deferred tax assets will be utilized, adjustments are made
as necessary.
Deferred tax liabilities are recognized for taxable temporary
differences, and for temporary differences that arise
between the fair value and the tax base of identifiable net
assets acquired in business combinations. Deferred tax
liabilities are not recognized if they arise from the initial
recognition of goodwill. Deferred tax liabilities are
recognized on taxable temporary differences associated
with investments in subsidiaries, associates and joint
arrangements, unless the timing of the reversal of the
temporary difference is controlled by Nokia, and it is
probable that the temporary difference will not reverse
in the foreseeable future. Nokia applies the exception to
recognizing and disclosing information about deferred
tax assets and liabilities related to Pillar Two income taxes,
as provided in the amendments to IAS 12 issued in May
2023. Deferred tax assets and deferred tax liabilities are
measured using the enacted or substantively enacted tax
rates at the reporting date that are expected to apply in the
period when the asset is realized or the liability is settled.
Deferred tax assets and liabilities are not discounted.
Deferred tax assets and deferred tax liabilities are offset for
presentation purposes when there is a legally enforceable
right to set off current tax assets against current tax
liabilities, and the deferred tax assets and deferred tax
liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different
taxable entities which intend either to settle current tax
liabilities and assets on a net basis, or realize the assets and
settle the liabilities simultaneously in each future period
in which significant amounts of deferred tax liabilities or
deferred tax assets are expected to be settled or recovered.
Nokia periodically evaluates positions taken in tax returns
in situations where applicable tax regulation is subject to
interpretation. The amounts of current and deferred tax
assets and liabilities are adjusted when it is considered
probable, i.e. more likely than not, that certain tax positions
may not be fully sustained upon review by tax authorities.
The amounts recorded are based on the most likely amount
or the expected value, depending on which method Nokia
expects to better predict the resolution of the uncertainty,
at each reporting date.
Critical accounting judgment
Nokia is subject to income taxes in the jurisdictions in
which it operates. Judgment is required in determining
current tax expense, uncertain tax positions, deferred
tax assets and deferred tax liabilities; and the extent to
which deferred tax assets can be recognized.
Estimates related to the recoverability of deferred tax
assets are based on forecast future taxable income
and tax planning strategies. Based on these estimates
and assumptions, at 31 December 2024, Nokia has
EUR 21 853 million (EUR 21 569 million in 2023) of
unused tax losses, unused tax credits and deductible
temporary differences for which no deferred tax assets
are recognized due to uncertainty of utilization. The
majority of the unrecognized deferred tax assets relate
to France.
The utilization of deferred tax assets is dependent on
future taxable profit in excess of the profit arising from
the reversal of existing taxable temporary differences.
The recognition of deferred tax assets is based on the
assessment of whether it is probable that sufficient
taxable profit will be available in the future to utilize the
unused tax losses, unused tax credits and deductible
temporary differences before the unused tax losses
and unused tax credits expire. Recognition of deferred
tax assets involves judgment regarding the future
financial performance of the particular legal entity
or tax group that has recognized the deferred tax asset.
At 31 December 2022, Nokia re-recognized deferred
tax assets of EUR 2.5 billion related to Finland in the
statement of financial position.
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Nokia in 2024
Components of the income tax expense/benefit
EURm
2024
2023
2022
Current tax expense
(439)
(429)
(421)
Deferred tax benefit/(expense)
59
(391)
2 454
Total
(380)
(820)
2 033
Income tax reconciliation
Reconciliation of the difference between income tax computed at the statutory rate in Finland of
20% and income tax recognized in the income statement:
EURm
2024
2023
2022
Income tax expense at statutory rate
(418)
(294)
(434)
Permanent differences
149
146
76
Non-creditable withholding taxes
(44)
(38)
(66)
Income taxes for prior years
10
23
2
Effect of different tax rates of subsidiaries operating in other jurisdictions
(46)
(143)
(66)
Effect of deferred tax assets not recognized(1)
(44)
(533)
(99)
Benefit arising from previously unrecognized deferred tax assets(2)
81
25
2 646
Net (increase)/decrease in uncertain tax positions
(29)
(15)
9
Change in income tax rates
(27)
32
24
Income taxes on undistributed earnings
(12)
(23)
(59)
Total
(380)
(820)
2 033
(1)
In 2023, includes a remeasurement of deferred tax assets related to internal operating model change.
(2)
In 2022, includes a re-recognition of deferred tax assets related to Finland.
Income tax liabilities and assets include a net liability of EUR 207 million (EUR 184 million in 2023)
relating to uncertain tax positions with inherently uncertain timing of cash outflows.
Prior period income tax returns for certain Group companies are under examination by local tax
authorities. Nokia has ongoing tax investigations in various jurisdictions, including Australia,
Brazil, Canada, China, France, India and United States. Nokia’s business and investments,
especially in emerging market countries, may be subject to uncertainties, including unfavorable
or unpredictable tax treatment. Management judgment and a degree of estimation are required
in determining the tax expense or benefit. Even though management does not expect that any
significant additional taxes in excess of those already provided for will arise as a result of these
examinations, the outcome or actual cost of settlement may vary materially from estimates.
Deferred tax assets and liabilities
Deferred tax assets and liabilities relate to the following:
2024
2023
Deferred
Deferred
Net
Deferred
Deferred
Net
EURm
tax assets
tax liabilities
balance
tax assets
tax liabilities
balance
Tax losses carried forward and
unused tax credits
1 019
—
1 062
—
Undistributed earnings
—
(213)
—
(215)
Intangible assets and property,
plant and equipment
2 957
(152)
2 962
(312)
Right-of-use assets
—
(131)
—
(177)
Defined benefit pension assets
—
(2 106)
—
(1 913)
Other non-current assets
24
(17)
83
(37)
Inventories
148
(12)
185
(18)
Other current assets
160
(69)
221
(93)
Lease liabilities
137
—
156
—
Defined benefit pension and other
post-employment liabilities
917
—
991
—
Other non-current liabilities
8
—
14
(1)
Provisions
254
(75)
245
(138)
Other current liabilities
287
(106)
301
(184)
Other temporary differences
34
(27)
33
(17)
Total before netting
5 945
(2 908)
3 037
6 253
(3 105)
3 148
Netting of deferred tax assets and
liabilities
(2 346)
2 346
—
(2 380)
2 380
—
Total after netting
3 599
(562)
3 037
3 873
(725)
3 148
In 2023, Nokia recognized a deferred tax expense and a decrease in deferred tax assets of
EUR 0.4 billion due to an internal transaction related to an operating model change that led
to a remeasurement of deferred tax assets in Finland and the United States.
Nokia has undistributed earnings of EUR 377 million (EUR 356 million in 2023) for which a
deferred tax liability has not been recognized as these earnings will not be distributed in the
foreseeable future.
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Movements in the net deferred tax balance during the year:
EURm
2024
2023
2022
1 January
3 148
3 502
990
Recognized in income statement, continuing operations
59
(391)
2 454
Recognized in income statement, discontinued operations
—
(3)
(2)
Recognized in other comprehensive income
(77)
51
56
Acquisitions through business combinations
2
—
—
Disposals
(75)
—
—
Other
—
(3)
2
Translation differences
(20)
(8)
2
31 December
3 037
3 148
3 502
In addition, at 31 December 2024, Nokia has unrecognized deferred tax assets of which
the majority relate to France. These deferred tax assets have not been recognized due to
uncertainty regarding their utilization. A significant portion of the French unrecognized deferred
tax assets are indefinite in nature and available against future French tax liabilities, subject to a
limitation of 50% of annual taxable profits.
The amount of temporary differences, tax losses carried forward and tax credits for which no
deferred tax asset was recognized due to uncertainty of utilization:
EURm
2024
2023
Temporary differences
1 810
1 743
Tax losses carried forward
19 770
19 482
Tax credits
273
344
Total
21 853
21 569
Expiry of tax losses carried forward and unused tax credits:
2024
2023
EURm
Recognized
Unrecognized
Total
Recognized
Unrecognized
Total
Tax losses carried forward
Within 10 years
1 356
1 022
2 378
1 375
1 025
2 400
Thereafter
74
—
74
17
—
17
No expiry
1 972
18 748
20 720
2 229
18 457
20 686
Total
3 402
19 770
23 172
3 621
19 482
23 103
Tax credits
Within 10 years
126
254
380
143
329
472
Thereafter
45
4
49
48
1
49
No expiry
153
15
168
154
14
168
Total
324
273
597
345
344
689
Nokia continually evaluates the probability of utilizing its deferred tax assets and considers both
positive and negative evidence in its assessment. As the majority of the recognized deferred tax
assets relate to Finland, Nokia has considered the following factors in the assessment:
■
The recent years’ cumulative accounting and taxable profit in Finland;
■
Expectations regarding future financial performance in Finland; and
■
The relevant attributes underlying the deferred tax assets are generally not subject to expiry.
At 31 December 2022, Nokia concluded based on its assessment that it is probable that it will be
able to utilize the unused tax losses and deductible temporary differences and re-recognized
deferred tax assets of EUR 2.5 billion in the statement of financial position.
In 2023 and 2024, Nokia generated accounting and taxable profit in Finland and continued to
recognize deferred tax assets related to Finland. In its assessment, Nokia has not applied any
cut-off period, other than expiry under the relevant tax legislation. A significant portion of the
tax attributes for which the deferred tax assets relate to are indefinite in nature and available
fully against future Finnish tax liabilities. Due to the non-expiry of these assets, the sensitivity
of future profit projections affects mainly the period over which the deferred tax assets are
expected to be utilized. Nokia will continue to monitor the above factors related to Finland,
including in particular its actual profit record, in upcoming periods.
Income tax related to items of other comprehensive income
2024
2023
2022
EURm
Gross
Tax
Net
Gross
Tax
Net
Gross
Tax
Net
Remeasurements of defined benefit
plans
408
(85) 323
(343)
61 (282) (424)
77 (347)
Translation differences
537
8 545
(535)
7 (528) 710
1 711
Net investment hedges
(40)
8
(32) 135
(27) 108
(127)
(20) (147)
Cash flow and other hedges
21
(3)
18
(61)
10
(51)
83
(15)
68
Financial assets at fair value through
other comprehensive income
19
(5)
14
10
—
10
(46)
13
(33)
Other increase/(decrease), net
3
—
3
(4)
—
(4)
(3)
—
(3)
Total
948
(77) 871
(798)
51 (747) 193
56 249
OECD Pillar Two model rules
Nokia is within the scope of the OECD Pillar Two model rules, which introduced a global minimum
tax rate of 15% per jurisdiction. Pillar Two legislation has been enacted in Finland, the jurisdiction
in which Nokia is incorporated, and is effective from 1 January 2024.
Nokia has performed an analysis of the impact of the Pillar Two legislation and based on this
analysis, in 2024, the impact on income tax expense is immaterial. The main elements of this
analysis were the following:
■
Current understanding of the interpretation of the rules.
■
Applicability of the safe harbors provided for in the Pillar Two legislation.
■
Analysis and calculations of potential income tax expense in respect of jurisdictions not
meeting safe harbor tests.
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2.6. Discontinued operations
Accounting policies
Non-current assets or disposal groups are classified as held for sale if their carrying
amounts will be recovered principally through a sale transaction rather than through
continuing use. Non-current assets or disposal groups classified as held for sale are
measured at the lower of their carrying amount and fair value less costs to sell. Non-
current assets classified as held for sale, or included in a disposal group classified as held
for sale, are not depreciated or amortized.
Discontinued operation is reported when a component of Nokia, comprising operations
and cash flows that can be clearly distinguished both operationally and for financial reporting
purposes from the rest of Nokia, has been disposed of or is classified as held for sale, and
that component represents a major line of business or geographical area of operations or
is part of a single coordinated plan to dispose of a separate major line of business or
geographical area of operations. Profit or loss from discontinued operations is reported
separately from income and expenses from continuing operations in the consolidated
income statement, with prior periods presented on a comparative basis. Intra-group
revenues and expenses between continuing and discontinued operations are eliminated.
On 27 June 2024, Nokia announced it had entered into a put option agreement to sell its wholly
owned subsidiary Alcatel Submarine Networks (ASN) to the French State. Upon entering into the
agreement Nokia classified the assets and liabilities of ASN as held for sale and recorded an
impairment loss of EUR 514 million on the measurement of ASN's net assets to fair value less
costs to sell. Beginning from the second quarter of 2024 the Submarine Networks business,
which was previously reported as part of Network Infrastructure operating segment, is presented
as a discontinued operation.
The sale was completed on 31 December 2024. Nokia recorded a gain of EUR 29 million related
to the sale and received a cash consideration of EUR 98 million from the sale. Nokia expects to
receive the remaining cash consideration of EUR 30 million from the sale in the first half of 2025.
In addition, Nokia retained a 20% shareholding in ASN with board representation to ensure a
smooth transition until targeted exit, at which point it is planned for the French State to acquire
Nokia’s remaining interest. Nokia accounts for its remaining interest in ASN as an investment in
an associated company.
Critical accounting judgment
Nokia classified its non-core standalone Submarine Networks business, a global provider
of submarine communication networks, as held-for-sale and a discontinued operation
following the announcement of its sale on 27 June 2024. For financial reporting purposes
the Submarine Networks business had been a separate cash-generating unit within the
Network Infrastructure reportable segment. Judgment was applied in determining that
the Submarine Networks business is a component of Nokia that represents a separate
major line of business which should be presented as a discontinued operation.
Results of discontinued operations
EURm
2024
2023
2022
Net sales
1 059
1 120
1 150
Expenses
(989)
(1 090)
(1 105)
Operating profit
70
30
45
Financial income and expenses
(7)
5
15
Impairment loss recognized on the remeasurement to fair
value less costs to sell
(514)
—
—
Gain on sale
29
—
—
(Loss)/profit from discontinued operations before tax
(422)
35
60
Income tax expense
(5)
(5)
(3)
(Loss)/profit from discontinued operations(1)(2)
(427)
30
57
(1)
Loss/profit from discontinued operations is attributable to the equity holders of the parent in its entirety.
(2)
In 2022, the profit from discontinued operations includes EUR 50 million net income resulting from the resolution of a tax dispute
related to Nokia’s former Devices & Services business which was sold in 2014.
Cash flows from discontinued operations
EURm
2024
2023
2022
Net cash flows from/(used in) operating activities
193
(44)
41
Net cash flows used in investing activities(1)
(188)
(59)
(83)
Net cash flows used in financing activities
(18)
(14)
(11)
Net cash flows used in discontinued operations
(13)
(117)
(53)
(1)
Cash proceeds from the disposal of the Submarine Networks business, net of cash disposed of, are included in net cash flows used
in investing activities of discontinued operations.
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Reconciliation of gain on sale of Submarine Networks business
EURm
31 December 2024
Cash proceeds
98
Deferred cash consideration
30
Total consideration
128
Carrying amount of net assets on disposal
(170)
Cumulative other comprehensive income
64
Transaction costs
(25)
Fair value of retained interest in associate
32
Gain on sale before tax
29
Income tax
—
Gain on sale after tax
29
Carrying amount of assets and liabilities on disposal
EURm
31 December 2024
ASSETS
Property, plant and equipment
102
Deferred tax assets
80
Inventories
147
Trade receivables
99
Contract assets
293
Other current financial and firm commitment assets
98
Other assets
89
Cash and cash equivalents
227
Total assets
1 135
LIABILITIES
Lease liabilities
36
Provisions
46
Other financial and firm commitment liabilities
50
Trade payables
93
Contract liabilities
347
Accrued expenses related to customer projects
184
Other liabilities
209
Total liabilities
965
Net assets on disposal
170
2.7. Earnings per share
Accounting policies
Basic earnings per share is calculated by dividing the profit or loss attributable to
equity holders of the parent by the weighted average number of shares outstanding
during the year. Diluted earnings per share is calculated by adjusting the profit or loss
attributable to equity holders of the parent, and the weighted average number of
shares outstanding, for the effects of all dilutive potential ordinary shares. Potential
ordinary shares are excluded from the calculation of diluted earnings per share when
they are determined to be antidilutive.
EURm
2024
2023
2022
Profit or loss attributable to equity holders of the parent
Continuing operations
1 704
635
4 193
Discontinued operations
(427)
30
57
Profit for the year
1 277
665
4 250
Number of shares (000s)
Weighted average number of shares outstanding
5 475 817
5 549 468
5 614 182
Effect of potentially dilutive shares
Performance shares
1 118
8 190
46 187
Restricted shares and other(1)
53 668
28 265
9 651
Total effect of potentially dilutive shares
54 786
36 455
55 838
Adjusted weighted average number of shares
5 530 603
5 585 923
5 670 020
(1) Includes the matching shares related to the employee share purchase plan.
Earnings per share, EUR
Basic earnings per share
Continuing operations
0.31
0.11
0.75
Discontinued operations
(0.08)
0.01
0.01
Profit for the year
0.23
0.12
0.76
Diluted earnings per share
Continuing operations
0.31
0.11
0.74
Discontinued operations
(0.08)
0.01
0.01
Profit for the year
0.23
0.12
0.75
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Section 3
Compensation
and benefits
This section provides information on Nokia’s
employee benefits including remuneration of the
management and Board of Directors. Employee
benefits comprise salaries and wages, short-term
cash incentives and share-based payments, as well
as post-employment benefits in accordance with
the local conditions and practices in the countries
in which Nokia operates.
Information about the remuneration of the President
and CEO and Board of Directors is provided in
compliance with Finnish Accounting Standards.
3.1. Summary of personnel expenses
EURm
2024
2023
2022
Salaries and wages(1)
6 163
5 859
6 318
Pensions and other post-
employment benefits
Defined contribution plans
242
249
239
Defined benefit plans(2)
157
155
192
Share-based payments
239
201
148
Social security costs
762
830
835
Total
7 563
7 294
7 732
(1)
Includes termination benefits.
(2)
Excludes amounts recorded in financial income and expenses, refer to Note 3.4.
Pensions and other post-employment benefits.
Average number of employees
Number of employees
2024
2023
2022
Continued Operations
78 434
84 795
85 101
Discontinued Operations
1 927
1 894
1 795
Total
80 361
86 689
86 896
3.2. Remuneration of key management
Remuneration of the Group Leadership Team
The amounts below represent each member’s time on the
Group Leadership Team.
EURm
2024
2023
2022
Short-term benefits
14
13
17
Post-employment benefits(1)
1
1
1
Share-based payments
12
13
13
Termination benefits(2)
4
—
1
Total
31
27
32
(1)
The members of the Group Leadership Team participate in the local retirement
programs applicable to employees in the country where they reside.
(2)
Includes both termination payments and payments made under exceptional
contractual arrangements for lapsed equity awards.
Remuneration of the President and CEO
EUR
2024
2023
2022
Base salary
1 410 500 1 322 750 1 300 000
Cash incentive payments
1 824 834 1 079 695 2 342 438
Share-based payment
expenses(1)
3 117 360 5 041 885 5 425 169
Pension expenses
310 937
422 274
406 806
Other benefits(2)
55 044
95 756
113 850
Total
6 718 675 7 962 360 9 588 263
(1)
Represents the expense for all outstanding equity grants recorded during the year.
(2)
Other benefits consist of telephone, car, driver, mobility, tax compliance support
and medical insurance.
Terms of termination of service agreement of the President
and CEO
On 10 February 2025, Nokia announced Pekka Lundmark will
step down as President and CEO of Nokia effective 31 March
2025. Refer to Note 6.5. Subsequent events for more details.
In accordance with Mr. Lundmark’s service agreement, he will
receive salary and benefits during the 12-month notice period,
and he is entitled to any short- or long-term incentives that will
vest during the notice period. Any unvested equity awards
would be forfeited after the notice period, unless the Board
determines otherwise.
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Remuneration of the Board of Directors
The annual remuneration paid to the members of the Board of Directors, as decided by the Annual General Meetings in the respective years:
2024
2023
2022
Annual fee(1)
EUR
Meeting fees(2)
EUR
Shares received(3)
number
Annual fee(1)
EUR
Meeting fees(2)
EUR
Shares received(3)
number
Annual fee(1)
EUR
Meeting fees(2)
EUR
Shares received(3)
number
Sari Baldauf, Chair (4)(5)
465 000
10 000
52 993
465 000
10 000
47 427
440 000
—
36 217
Søren Skou, Vice Chair(5)
220 000
14 000
25 072
225 000
14 000
22 948
210 000
9 000
17 285
Timo Ahopelto(4)(6)
210 000
10 000
23 932
210 000
10 000
21 418
—
—
—
Bruce Brown
—
—
—
—
5 000
—
210 000
17 000
17 285
Elizabeth Crain(4)(5)
220 000
12 000
25 072
215 000
15 000
21 928
—
—
—
Thomas Dannenfeldt(4)(5)(7)
240 000
14 000
27 351
230 000
9 000
23 458
200 000
9 000
16 462
Lisa Hook(5)(7)
210 000
14 000
23 932
200 000
17 000
20 399
185 000
7 000
15 227
Jeanette Horan
—
—
—
210 000
10 000
21 418
195 000
—
16 050
Edward Kozel
—
—
—
—
5 000
—
205 000
12 000
16 874
Mike McNamara (6)(7)
210 000
14 000
23 932
—
—
—
—
—
—
Thomas Saueressig(6)
195 000
14 000
22 223
195 000
14 000
19 889
180 000
7 000
14 816
Carla Smits-Nusteling(7)
215 000
9 000
24 502
215 000
14 000
21 928
200 000
9 000
16 462
Kai Öistämö(6)
205 000
10 000
23 362
205 000
10 000
20 908
180 000
5 000
14 816
Total
2 390 000
121 000
2 370 000
133 000
2 205 000
75 000
(1)
Annual fees consist of Board member fees and Committee chair and member fees.
(2)
Meeting fees include all meeting fees paid for the term that ended at the Annual General Meeting held on 3 April 2024, and meeting fees accrued and paid in 2024 for the term that began at the same meeting.
(3)
Approximately 40% of each Board member’s annual compensation is paid in Nokia shares purchased from the market, and the remaining approximately 60% is paid in cash.
(4)
Annual fees in 2024 include EUR 30 000 for Thomas Dannenfeldt as Chair and EUR 15 000 for Timo Ahopelto, Sari Baldauf and Elizabeth Crain as members of the Personnel Committee.
(5)
Annual fees in 2024 include EUR 20 000 for Elizabeth Crain as Chair and EUR 10 000 for Sari Baldauf, Thomas Dannenfeldt, Lisa Hook and Søren Skou as members of the Strategy Committee.
(6)
Annual fees in 2024 include EUR 20 000 for Kai Öistämö as Chair and EUR 10 000 for Timo Ahopelto, Mike McNamara and Thomas Saueressig as members of the Technology Committee.
(7)
Annual fees in 2024 include EUR 30 000 for Carla Smits-Nusteling as Chair and EUR 15 000 for Thomas Dannenfeldt, Lisa Hook and Mike McNamara as members of the Audit Committee.
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3.3. Share-based payments
Accounting policies
Nokia offers three types of global share-based
compensation plans for employees: performance shares,
restricted shares and the employee share purchase plan.
All plans are equity-settled.
Employee services received and the corresponding
increase in equity are measured by reference to the
fair value of the equity instruments at the grant date,
excluding the impact of any non-market vesting
conditions. Plans that apply tranched vesting are
accounted for under the graded vesting model. Share-
based compensation plans are generally conditional on
continued employment as well as the fulfillment of any
performance conditions specified in the award terms.
Until the Nokia shares are delivered, the participants
do not have any shareholder rights, such as voting or
dividend rights, associated with the shares. The share
grants are generally forfeited if the employment
relationship with Nokia terminates prior to vesting.
Share-based compensation is recognized as an expense
over the relevant service periods.
Share-based payment expense
In 2024, the share-based payment expense recognized in the
income statement for continuing operations for all share-
based compensation plans amounted to EUR 239 million
(EUR 201 million in 2023 and EUR 148 million in 2022).
Performance shares
In 2024, Nokia had outstanding Performance shares from
grants made in 2021, 2022, 2023 and 2024. Starting in 2021,
grants made for Performance shares have been targeted on a
more limited basis to senior level employees and executives.
Performance share plans at 31 December 2024:
Plan
Performance
shares
outstanding
at target
Confirmed
payout
(% of target)
Performance
period
Settlement year
2021
251 552
12%
2021–2023
2024/2025
2022
10 752 500
0%
2022–2024
2025/2026
2023
13 675 400
—
2023–2025
2026/2027
2024
19 057 490
—
2024–2026
2027/2028
The 2021 and 2022 Performance share grants have a three-
year vesting period where Nokia’s actual total shareholder
return (ATSR) is compared to the target total shareholder
return to determine the number of Nokia shares that will be
delivered at settlement. The 2021 and 2022 Performance
share grants do not include a minimum payout guarantee.
The 2023 Performance share grants apply the ATSR
performance metric to two-thirds of the grant. For the
remaining one-third of the granted shares, the metrics are
either a service condition alone or a Relative total shareholder
return (RTSR). RTSR grants measure Nokia’s share performance
against its peer group companies where minimum payout for
this metric requires Nokia to be at least in the 25th percentile
when compared with the peer group.
The 2024 Performance share grants apply the performance
metrics to two-thirds of the grant. For the remaining one-third
of the granted shares, the metrics are either a service
condition or performance metrics. The performance metrics
of the 2024 performance share grants are 50% RTSR, 40%
Cumulative EPS targets adjusted for non-recurring events,
and 10% carbon emissions targets.
Restricted shares
In 2024, there were outstanding Restricted shares from grants
made in 2021, 2022, 2023 and 2024. Starting in 2021, Nokia
has granted Restricted shares to selected employees as the
primary method of equity compensation. Restricted shares
are Nokia shares that will be delivered to eligible participants
at a future point in time, subject to the fulfillment of
predetermined service conditions. Restricted shares will either
vest on the third anniversary of the award or follow a tranche
vesting schedule whereby each plan vests in one or more
tranches determined at the award date.
The Restricted share grants are generally forfeited if the
employment relationship with Nokia terminates prior to vesting
of the applicable tranche or tranches.
Employee share purchase plan
Nokia offers a voluntary Employee Share Purchase Plan (ESPP)
to its employees. Participating employees make contributions
from their net salary to purchase Nokia shares on a monthly
basis during a 12-month savings period. Nokia delivers one
matching share for every two purchased shares the employee
holds at the end of the plan cycle. In 2024, 7 455 343 matching
shares were issued as a settlement to the participants of the
ESPP 2023 (6 726 190 matching shares issued under the 2022
Plan in 2023, and 5 243 560 matching shares issued under the
2021 Plan in 2022).
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Share-based payment plans by instrument
Performance shares
Restricted shares
Number of shares
outstanding at target
Weighted average grant
date fair value (EUR)
Number of shares
outstanding
Weighted average grant
date fair value (EUR)
1 January 2022
79 827 008
26 763 693
Granted
12 661 300
3.49
32 238 100
4.15
Forfeited
(2 450 396)
(1 695 734)
Vested(1)
(26 290 064)
(2 778 431)
31 December 2022
63 747 848
54 527 628
Granted
15 207 400
3.10
45 322 400
3.36
Forfeited
(3 916 744)
(1 998 801)
Vested(1)
(31 691 700)
(3 175 287)
31 December 2023
43 346 804
94 675 940
Granted
19 202 484
3.65
57 602 936
3.48
Forfeited
(3 589 329)
(5 471 235)
Vested(1)
(15 223 017)
(23 834 342)
31 December 2024
43 736 942
122 973 299
(1)
Vested performance shares at target are to be multiplied by the confirmed payout (% of target) to calculate the total number of Nokia shares settled.
Estimation of grant date fair values
Plan
Grant date fair value
ATSR
Estimated considering the dividend-adjusted Nokia share price at the end of the performance period of the plan and the target payout
levels set for the plan.
RTSR
Estimated considering a combination of the dividend-adjusted Nokia share price compared with benchmark companies’ share prices at
the end of the performance period of the plan and the target payout levels set for the plan.
Restricted
Shares
Estimated using the grant date market price of the Nokia share less the present value of dividends expected to be paid during the
vesting period.
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3.4. Pensions and other post-employment benefits
Accounting policies
Nokia has various post-employment plans in accordance with the local conditions and
practices in the countries in which it operates. Nokia’s defined benefit plans comprise
pension schemes as well as other benefit plans providing post-employment healthcare and
life insurance coverage to certain employee groups. Defined benefit plans expose Nokia to
various risks such as investment risk, interest rate risk, life expectancy risk, and regulatory/
compliance risk. The characteristics and extent of these risks vary depending on the legal,
fiscal and economic requirements in each country as well as the impact of global events.
The plans are generally funded through payments to insurance companies or contributions
to trustee-administered funds as determined by periodic actuarial calculations.
The costs of defined benefit plans are assessed using the projected unit credit method.
The defined benefit obligation is measured as the present value of the estimated future
cash outflows using interest rates on high-quality corporate bonds or government bonds
with maturities most closely matching expected payouts of benefits. The plan assets
are measured at fair value at the reporting date. The liability or asset recognized in the
statement of financial position is the present value of the defined benefit obligation at the
reporting date less the fair value of plan assets adjusted for effects of any asset ceiling.
Actuarial valuations for defined benefit plans are performed annually or when a material
plan amendment, curtailment or settlement occurs. Service cost related to employees’
service in the current period and past service cost resulting from plan amendments and
curtailments, as well as gains and losses on settlements, are presented in cost of sales,
research and development expenses or selling, general and administrative expenses. Net
interest as well as pension plan administration costs not considered in determining the
return on plan assets, are presented in financial income and expenses. Remeasurements,
comprising actuarial gains and losses, the effect of the asset ceiling and the return
on plan assets, excluding amounts recognized in net interest, are recognized in other
comprehensive income. Remeasurements are not reclassified to profit or loss in
subsequent periods.
In a defined contribution plan, Nokia’s legal or constructive obligation is limited to the
amount that it agrees to contribute to the plan. Nokia’s contributions to defined
contribution plans, multi-employer and insured plans are recognized in the income
statement in the period to which the contributions relate. If a pension plan is funded
through an insurance contract where Nokia does not retain any legal or constructive
obligations, the plan is treated as a defined contribution plan. All arrangements that
do not fulfill these conditions are considered defined benefit plans.
Defined benefit plans
Nokia’s most significant defined benefit plans are in the United States, Germany, and the
United Kingdom. Together, they account for 92% of Nokia’s total defined benefit obligation
(93% in 2023) and 91% of Nokia’s total fair value of plan assets (91% in 2023).
Summary of defined benefit balances at 31 December
EURm
Defined
benefit
obligation
Fair value of
plan assets
Effects of
asset ceiling
Net defined
benefit
balance
2024
United States, Pension
(10 688)
16 188
—
5 500
United States, OPEB
(1 393)
701
—
(692)
Germany
(1 959)
1 240
—
(719)
United Kingdom
(529)
736
—
207
Other
(1 220)
1 858
(85)
553
Total
(15 789)
20 723
(85)
4 849
2023
United States, Pension
(11 325)
16 285
—
4 960
United States, OPEB
(1 471)
675
—
(796)
Germany
(2 037)
1 199
—
(838)
United Kingdom
(782)
957
—
175
Other
(1 253)
1 798
(87)
458
Total
(16 868)
20 914
(87)
3 959
Funded status of defined benefit obligation:
EURm
2024
2023
Wholly funded
12 665
12 782
Partly funded
2 252
3 149
Unfunded
872
937
Total
15 789
16 868
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United States
Nokia has significant defined benefit pension plans and a significant post-employment welfare
benefit plan (OPEB) providing post-employment healthcare benefits and life insurance coverage
in the United States.
Defined Benefit Pension Plans
The defined benefit pension plans include both traditional service-based programs and cash-
balance plans. Salaried, non-union-represented employees are covered by a cash-balance
program. All other legacy programs, including legacy service-based programs, were frozen by
31 December 2009. For former employees who, when actively employed, were represented
by a union, Nokia maintained two defined benefit pension plans, both of which are traditional
service-based programs. On 31 December 2021, these two plans were merged.
Other Post-Employment Benefit Plan
The other post-employment benefit plan provides welfare benefits for certain retired former
employees. Pursuant to an agreement with the Communications Workers of America (CWA) and
the International Brotherhood of Electrical Workers (IBEW) unions, Nokia provides post-employment
healthcare benefits and life insurance coverage for employees formerly represented by these
two unions. That agreement was renewed in 2020, and the contract expires on 31 December
2027.
On 1 October 2024, Nokia transferred investment management operations for US Pension,
OPEB and 401(k) assets to Mercer in an Outsourced Investment Management (OCIO) transaction.
Germany
Nokia maintains two primary plans in Germany which cover the majority of active employees:
the cash-balance plan Beitragsorientierter Altersversorgungs Plan (BAP) for the Group’s Nokia
employees and a similar cash-balance program (AVK Basis-/Matchingkonto) for the Group’s
former Alcatel-Lucent employees. Individual benefits are generally dependent on eligible
compensation levels, ranking within the Group and years of service. These plans are partially
funded defined benefit pension plans, the benefits being subject to a minimum return
guaranteed by the Group. The funding vehicle for the BAP is the NSN Pension Trust e.V.
The trust is legally separate from the Group and manages the plan assets in accordance with
the respective trust agreements.
All other plans have been frozen or closed in prior years and replaced by the cash-balance plans.
Benefits are paid in annual installments, as monthly retirement pension, or as a lump sum on
retirement in an amount equal to accrued pensions and guaranteed interest.
United Kingdom
Nokia maintains one primary plan in the UK, “Nokia Retirement Plan for former NSN & ALU
employees”, which is the result of the 2019 merger of the legacy Nokia plan where the plan
was merged and members’ benefits were transferred to the legacy Alcatel-Lucent plan. The
combined plan consists of both money purchase sections with Guaranteed Minimum Pension
(GMP) underpin and final salary sections. All final salary sections are closed to future benefit
accrual: the legacy Nokia plan closed on 30 April 2012 and the legacy Alcatel-Lucent plan
on 30 April 2018. Individual benefits for final salary sections are dependent on eligible
compensation levels and years of service. For the money purchase sections with GMP underpin,
individual benefits are dependent on the greater of the value of GMP at retirement date and
the pension value resulting from the individual’s invested funds. Nokia engages the services of
an external trustee service provider to manage all investments for the combined pension plan.
During 2024, Nokia completed a risk transfer buy-out in the amount of EUR 178 million, with
insurer Aviva, for certain beneficiaries whose liability was covered by an existing insurance
agreement.
With regard to the implications of the ruling by the High Court in June 2023, and the dismissal
of appeal by the Court of Appeal in July 2024, in the case of Virgin Media Limited v NTL Pension
Trustees II Ltd, Nokia’s UK Pension Trustee will be undertaking an investigation pending further
developments of this case in the courts expected in early 2025. As at 31 December 2024,
management has not identified any benefit uncertainties for which the potential impact would
need to be considered.
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Movements in the defined benefit obligation, fair value of plan assets and the impact of the asset ceiling limitation for the years ended 31 December
Defined benefit obligation
2024
2023
EURm
United States
pension
United States
OPEB
Other pension
Total
United States
pension
United States
OPEB
Other pension
Total
1 January
(11 325)
(1 471)
(4 072)
(16 868)
(12 340)
(1 615)
(4 357)
(18 312)
Current service cost
(86)
—
(62)
(148)
(83)
—
(74)
(157)
Interest expense
(509)
(67)
(142)
(718)
(563)
(73)
(173)
(809)
Past service cost
(12)
—
7
(5)
(9)
—
3
(6)
Settlements(1)
—
—
178
178
—
—
501
501
Total
(607)
(67)
(19)
(693)
(655)
(73)
257
(471)
Remeasurements:
Gain/(loss) from change in demographic assumptions
114
17
32
163
66
1
(12)
55
Gain/(loss) from change in financial assumptions
463
62
88
613
(114)
(26)
(161)
(301)
Experience gain/(loss)
94
27
(13)
108
(43)
28
(11)
(26)
Total
671
106
107
884
(91)
3
(184)
(272)
Translation differences
(664)
(87)
(32)
(783)
431
57
(12)
476
Contributions from plan participants
—
(76)
(4)
(80)
—
(60)
(24)
(84)
Benefits paid
1 237
212
272
1 721
1 330
229
249
1 808
Other(2)
—
(10)
40
30
—
(12)
(1)
(13)
Total
573
39
276
888
1 761
214
212
2 187
31 December
(10 688)
(1 393)
(3 708)
(15 789)
(11 325)
(1 471)
(4 072)
(16 868)
Weighted average duration of the defined benefit obligation (in years)
9.1
10.3
10.1
9.5
7.7
8.8
10.6
8.5
(1)
In 2024, the settlement relates to the transfer of a liability in the amount of EUR 178 million to insurer Aviva as part of a buy-out transaction in the UK. In 2023, the settlement related to the transfer of liabilities from formerly Nokia managed Provident Fund to Indian
government managed Provident Fund platform (EPFO).
(2)
Includes divestment related transfers.
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Fair value of plan assets
2024
2023
EURm
United States
pension
United States
OPEB
Other pension
Total
United States
pension
United States
OPEB
Other pension
Total
1 January
16 285
675
3 954
20 914
17 726
637
4 328
22 691
Interest income
755
30
133
918
820
28
171
1 019
Administrative expenses and interest on asset ceiling
(18)
—
(5)
(23)
(17)
—
(4)
(21)
Settlements(1)
—
—
(183)
(183)
—
—
(494)
(494)
Total
737
30
(55)
712
803
28
(327)
504
Remeasurements:
Return on plan assets, excluding amounts included in interest income
(576)
50
44
(482)
(186)
62
48
(76)
Total
(576)
50
44
(482)
(186)
62
48
(76)
Translation differences
990
41
41
1 072
(624)
(21)
28
(617)
Contributions:
Employers
27
3
25
55
27
7
41
75
Plan participants
—
76
4
80
—
60
24
84
Benefits paid
(1 237)
(212)
(179)
(1 628)
(1 330)
(229)
(181)
(1 740)
Section 420 transfer(2)
(38)
38
—
—
(131)
131
—
—
Other
—
—
—
—
—
—
(7)
(7)
Total
(258)
(54)
(109)
(421)
(2 058)
(52)
(95)
(2 205)
31 December
16 188
701
3 834
20 723
16 285
675
3 954
20 914
(1)
In 2024, the settlement primarily relates to transfer of assets in the amount of EUR 178 million to insurer Aviva as part of a buy-out transaction in the UK. In 2023, the settlement relates to the transfer of assets from formerly Nokia managed Provident Fund to Indian
government managed Provident Fund platform (EPFO).
(2)
Refer to the Future cash flows section below for description of Section 420 transfers.
The impact of the asset ceiling limitation
2024
2023
EURm
United States
pension
United States
OPEB
Other pension
Total
United States
pension
United States
OPEB
Other pension
Total
1 January
—
—
(87)
(87)
—
—
(84)
(84)
Interest expense
—
—
(1)
(1)
—
—
(2)
(2)
Remeasurements:
Change in asset ceiling, excluding amounts included in interest expense
—
—
6
6
—
—
5
5
Translation differences
—
—
(3)
(3)
—
—
(6)
(6)
31 December
—
—
(85)
(85)
—
—
(87)
(87)
Net balances
2024
2023
EURm
United States
pension
United States
OPEB
Other pension
Total
United States
pension
United States
OPEB
Other pension
Total
31 December
5 500
(692)
41
4 849
4 960
(796)
(205)
3 959
Consisting of:
Net pension assets
5 749
—
1 183
6 932
5 217
—
1 041
6 258
Net pension liabilities
(249)
(692)
(1 142)
(2 083)
(257)
(796)
(1 246)
(2 299)
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Recognized in the income statement(1)
EURm
2024
2023
2022
Current service cost(2)
148
157
205
Past service cost(2)
5
6
(2)
Net interest(3)
(176)
(187)
(92)
Settlements(2)
5
(7)
(10)
Total
(18)
(31)
101
(1)
Includes amounts related to both continuing and discontinued operations.
(2)
Amounts related to continuing operations are presented in operating expenses within the income statement.
(3)
Amounts related to continuing operations are presented in financial income within the income statement.
Recognized in other comprehensive income
EURm
2024
2023
2022
Return on plan assets, excluding amounts included in interest income
(482)
(76)
(4 646)
Gain/(loss) from change in demographic assumptions
163
55
(4)
(Loss)/gain from change in financial assumptions
613
(301)
4 534
Experience (loss)/gain
108
(26)
(320)
Change in asset ceiling, excluding amounts included in interest expense
6
5
12
Total
408
(343)
(424)
Actuarial assumptions and sensitivity analysis
Actuarial assumptions
The discount rates and mortality tables used for the significant plans:
Discount rate
Mortality table
2024
2023
2024
United States(1)
5.3%
4.7 %
Pri-2012 w/MP-2020
Mortality projection scale
Germany
3.4%
3.2 %
Heubeck 2018G
United Kingdom(2)
5.6%
4.5 %
CMI 2023
Total weighted average for all countries
4.9%
4.4 %
(1)
Mortality tables remain unchanged in the US. 2024 mortality assumption includes an adjustment based upon actual experience.
(2)
Mortality tables have been updated from CMI 2021 in 2023 to CMI 2023 for United Kingdom and have been adjusted with 1.5%
long-term rate of improvement.
Assumptions regarding future mortality are set based on actuarial advice in accordance with
published statistics and experience in each country.
The principal actuarial weighted average assumptions used for determining the defined benefit
obligation and sensitivity of the defined benefit obligation to changes in these assumptions:
2024
2023
Change in
assumption
Increase in
assumption(1)
EURm
Decrease in
assumption(1)
EURm
Discount rate for determining
present values
4.9%
4.4 %
1.0%
1 162
(1 358)
Pension growth rate
2.1%
3.3 %
1.0%
(226)
175
Inflation rate
2.0%
2.3 %
1.0%
(249)
219
Life expectancy
86-88 yrs
87-88 yrs
1 year
(589)
559
(1)
Positive movement indicates a reduction in the defined benefit obligation; a negative movement indicates an increase in the
defined benefit obligation.
Sensitivity analysis
When calculating the sensitivity of the defined benefit obligation to significant actuarial
assumptions, the present value of the defined benefit obligation is calculated using the
projected unit credit method. The sensitivity analyses are based on a change in an assumption
while holding all other assumptions constant and may not be representative of the actual impact
of changes. If more than one assumption is changed simultaneously, the combined impact
of changes would not necessarily be the same as the sum of the individual changes. If the
assumptions change to a different level compared with that presented, the effect on the defined
benefit obligation may not be linear. Increases and decreases in the principal assumptions, which
are used in determining the defined benefit obligation, do not have a symmetrical effect on
the defined benefit obligation primarily due to the compound interest effect created when
determining the net present value of the future benefit.
Key source of estimation uncertainty
The determination of pension and other post-employment benefit obligations and
expenses for defined benefit plans is dependent on a number of estimates and
assumptions, including the discount rate, future mortality rate, annual rate of increase
in future compensation levels, and healthcare costs trend rates and usage of services
in the United States where the majority of our post-employment healthcare plans are
maintained. Changes in assumptions and actuarial estimates may materially affect the
benefit obligation, future expense and future cash flow.
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Investment strategies
The overall pension investment objective of Nokia is to
preserve or enhance the defined benefit pension plans’ funded
status through the implementation of an investment strategy
that maximizes return within the context of minimizing funded
status risk. In formulating the asset allocation for the plans,
multiple factors are considered, including, but not limited to,
the long-term risk and return expectations for a variety of
asset classes as well as current and multi-year projections
of the defined benefit pension plans’ demographics, benefit
payments, contributions and funded status. Local trustee
boards are responsible for conducting Asset-Liability
Management (ALM) studies, when appropriate; overseeing the
investment of plan assets; and monitoring and managing
associated risks under company oversight and in accordance
with local law. The results of the ALM framework are
implemented on a plan level.
Nokia’s pension investment managers may use derivative
financial instruments including futures contracts, forward
contracts, options and interest rate swaps to manage market
risk. The performance and risk profile of investments is
regularly monitored on a standalone basis as well as in the
broader portfolio context. One risk is a decline in the plan’s
funded status as a result of the adverse performance of plan
assets and/or defined benefit obligations. The application
of the ALM study focuses on minimizing such risks.
United States plan assets
The majority of Nokia’s United States pension plan assets are
held in a master pension trust. The OPEB plan assets are held
in two separate trusts. The Pension & Benefits Investment
Committee formally approves the target asset allocation
following the proposal by Nokia’s OCIO provider. The overall
United States pension plan asset portfolio, at 31 December
2024, reflects a balance of investments split of approximately
20/80 between equity, including alternative investments for
this purpose, and fixed income securities.
Disaggregation of plan assets(1)
2024
2023
EURm
Quoted
Unquoted
Total
% of total
assets
Quoted
Unquoted
Total
% of total
assets
Equity securities
1 055
—
1 055
5%
1 249
—
1 249
6%
Fixed income securities
14 721
142
14 863
72%
14 750
140
14 890
71%
Insurance contracts
—
648
648
3%
—
807
807
4%
Real estate
—
860
860
4%
—
1 010
1 010
5%
Short-term investments
945
—
945
5%
689
—
689
3%
Private equity and other
103
2 249
2 352
11%
106
2 163
2 269
11%
Total
16 824
3 899
20 723
100%
16 794
4 120
20 914
100%
(1)
Beginning in 2024, Nokia reports temporarily held cash positions associated with different asset classes as part of those asset classes. Previously these cash positions were
included in short-term investments. Comparative asset balances have been recast accordingly.
Most short-term investments including cash, equities and fixed-income securities have quoted market prices in active markets.
Equity securities represent investments in equity funds and direct investments, which have quoted market prices in an active
market. Fixed income securities represent direct investments in government and corporate bonds, as well as investments in
bond funds, which have quoted market prices in an active market. Insurance contracts are customary pension insurance
contracts structured under domestic law in the respective countries. Real estate investments are investments in commercial
properties or real estate funds, which invest in a diverse range of real estate properties. Private equity and other investments
include investments in private equity limited partnerships and absolute return investments in hedge funds.
Short-term investments are liquid assets or cash, which are being held for a short period of time, with the primary purpose of
controlling the tactical asset allocation. Private equity net asset values (NAVs) are determined by the asset managers based on
inputs such as operating results, discounted future cash flows and market-based comparable data. Assets invested in alternative
asset classes such as private equity, real estate and absolute return are measured using latest available valuations provided by
the asset managers, reviewed by Nokia and adjusted for subsequent cash flows.
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Future cash flows
Contributions
Group contributions to the pension and other post-employment benefit plans are made to
facilitate future benefit payments to plan participants. The funding policy is to meet minimum
funding requirements as set forth in the employee benefit and tax laws, as well as any such
additional amounts as Nokia may determine appropriate. Contributions are made to benefit
plans for the sole benefit of plan participants. Employer contributions expected to be paid in
2025 total EUR 55 million.
United States
Funding methods
Funding requirements for the two United States qualified defined benefit pension plans are
determined by the applicable statutes, namely the Employee Retirement Income Security Act of
1974 (ERISA), the Internal Revenue Code of 1986, and regulations issued by the Internal Revenue
Service (IRS). In determining funding requirements, ERISA allows assets to be either fair value
or an average value over a period of time; and liabilities to be based on spot interest rates or
average interest rates over a period of time. For the non-represented and formerly represented
defined benefit pension plans, Nokia does not foresee any future funding requirement for
regulatory funding purposes, given the plans’ asset allocation and the level of assets compared
to liabilities.
Post-employment healthcare benefits for both non-represented and formerly union
represented retirees are capped for those who retired after 28 February 1990. The benefit
obligation associated with this group of retirees is 99% of the total United States retiree
healthcare obligation at 31 December 2024. The US government’s Medicare program is the
primary payer for those aged 65 and older.
Section 420 transfers
Section 420 of the U.S. Internal Revenue Code (Section 420) allows for the transfer of pension
assets in excess of specified thresholds above the plan’s funding obligation (excess pension
assets) to a retiree health benefits account, a retiree life insurance account, or both, maintained
within the pension plan and to use the assets in such accounts to pay for, or to reimburse the
employer for the cost of providing applicable health or life insurance benefits, each as defined
in Section 420, for retired employees, and with respect to health benefits, their spouses and
dependents. Employers making such transfers are required to continue to provide healthcare
benefits or life insurance coverage, as the case may be, for a certain period of time (cost
maintenance period) at levels prescribed by regulations. Pursuant to Section 420, Nokia has
transferred EUR 38 million during 2024 (EUR 131 million in 2023). Section 420 is currently set to
expire on 31 December 2032.
Benefit payments
The following table summarizes expected benefit payments from the defined benefit pension
plans and other post-employment benefit plans until 2034. Actual benefit payments may differ
from expected benefit payments.
US Pension
US OPEB
Other
countries
Total
EURm
Management
Occupational
Supplemental
plans
Formerly union
represented
Non-union
represented
2025
1 053
214
27
60
61
261
1 676
2026
983
198
26
53
62
241
1 563
2027
919
184
25
49
62
240
1 479
2028
861
170
24
79
62
244
1 440
2029
810
157
23
72
63
269
1 394
2030–2034
3 343
609
101
273
309
1 346
5 981
Benefits are paid from plan assets where there is sufficient funding available to the plan to cover
the benefit obligation. Any payments in excess of the plan assets are paid directly by Nokia.
Direct benefit payments expected to be paid in 2025 total EUR 108 million.
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Section 4
Operating
assets and
liabilities
This section provides detailed information on Nokia’s
assets and liabilities related to its operating activities,
such as tangible and intangible fixed assets, leases,
inventories, trade receivables and other customer
related balances, and provisions.
4.1. Goodwill and intangible assets
Accounting policies
Intangible assets acquired separately are measured on
initial recognition at cost. Internally generated intangibles,
except for development costs that may be capitalized, are
expensed as incurred. Development costs are capitalized
only if Nokia has the technical feasibility to complete the
asset; has an ability and intention to use or sell the asset;
can demonstrate that the asset will generate future
economic benefits; has resources available to complete
the asset; and has the ability to measure reliably the
expenditure during development.
The useful life of Nokia’s intangible assets, other than
goodwill, is finite. Following initial recognition, finite
intangible assets are carried at cost less accumulated
amortization and accumulated impairment losses. Intangible
assets are amortized over their useful lives, generally three
years to ten years, using the straight-line method, which is
considered to best reflect the pattern in which the asset’s
future economic benefits are expected to be consumed.
Depending on the nature of the intangible asset, the
amortization charges for continuing operations are included
in cost of sales, research and development expenses or
selling, general and administrative expenses.
Goodwill is allocated to the cash-generating units or groups
of cash-generating units that are expected to benefit from
the synergies of the related business combination and that
reflect the lowest level at which goodwill is monitored for
internal management purposes. A cash-generating unit, as
determined for the purposes of Nokia’s goodwill impairment
testing, is the smallest group of assets generating cash
inflows that are largely independent of the cash inflows
from other assets or groups of assets. The carrying value
of a cash-generating unit includes its share of relevant
corporate assets allocated to it on a reasonable and
consistent basis. When the composition of one or more
groups of cash-generating units to which goodwill has been
allocated is changed, the goodwill is reallocated based on
the relative fair value of the affected groups of cash-
generating units.
Nokia tests the carrying value of goodwill for impairment
annually. In addition, Nokia assesses the recoverability of the
carrying value of goodwill and intangible assets if events
or changes in circumstances indicate that the carrying value
may be impaired. Factors that Nokia considers when it
reviews indications of impairment include, but are not
limited to, underperformance of the asset relative to its
historical or projected future results, significant changes
in the manner of using the asset or the strategy for the
overall business, and significant negative industry or
economic trends.
Nokia conducts its impairment testing by determining the
recoverable amount for an asset, a cash-generating unit or
groups of cash-generating units. The recoverable amount
of an asset, a cash-generating unit or groups of cash-
generating units is the higher of its fair value less costs of
disposal and its value-in-use. The recoverable amount is
compared to the asset’s, cash-generating unit’s or groups
of cash-generating units’ carrying value. If the recoverable
amount for the asset, cash-generating unit or groups of
cash-generating units is less than its carrying value, the
asset is considered impaired and is written down to its
recoverable amount. Impairment losses are presented
in cost of sales, research and development expenses or
selling, general and administrative expenses, except for
impairment losses on goodwill, which are presented in
other operating expenses.
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EURm
Goodwill
Intangible
assets
Total
2024
Acquisition cost at 1 January
6 629
9 893
16 522
Additions
—
97
97
Acquisitions through business combinations
33
—
33
Assets held for sale
(38)
(170)
(208)
Disposals and retirements
(11)
(282)
(293)
Translation differences
260
255
515
Acquisition cost at 31 December
6 873
9 793
16 666
Accumulated amortization and impairment charges at 1 January
(1 125)
(8 807)
(9 932)
Amortization
—
(390)
(390)
Assets held for sale
—
165
165
Disposals and retirements
—
278
278
Translation differences
(12)
(237)
(249)
Accumulated amortization and impairment charges at 31 December
(1 137)
(8 991)
(10 128)
Net book value at 1 January
5 504
1 086
6 590
Net book value at 31 December
5 736
802
6 538
2023
Acquisition cost at 1 January
6 799
9 778
16 577
Additions
—
299
299
Disposals, retirements and assets held for sale
(22)
(23)
(45)
Translation differences
(148)
(161)
(309)
Acquisition cost at 31 December
6 629
9 893
16 522
Accumulated amortization and impairment charges at 1 January
(1 132)
(8 515)
(9 647)
Amortization
—
(423)
(423)
Impairment
—
(26)
(26)
Disposals and retirements
—
17
17
Translation differences
7
140
147
Accumulated amortization and impairment charges at 31 December
(1 125)
(8 807)
(9 932)
Net book value at 1 January
5 667
1 263
6 930
Net book value at 31 December
5 504
1 086
6 590
Net book value of intangible assets by type of asset
EURm
2024
2023
Customer relationships
317
605
Patents and licenses
304
316
Technologies and IPR&D
12
31
Tradenames and other
51
60
Intangible assets under construction
118
74
Total
802
1 086
At 31 December 2024, the weighted average remaining
amortization period is approximately one year for customer
relationships, six years for patents and licenses, one year for
technologies and IPR&D, and three years for tradenames
and other.
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Goodwill
Nokia has allocated goodwill to its operating segments
corresponding to groups of cash-generating units (CGUs) that
are expected to benefit from goodwill. Refer to Note 2.2.
Segment information.
Allocation of goodwill
The following table presents the allocation of goodwill to
groups of CGUs at 31 December:
EURm
2024
2023
Network Infrastructure
2 831
2 739
Mobile Networks
2 346
2 228
Cloud and Network Services
559
537
Recoverable amounts
The recoverable amounts of the groups of CGUs in 2024 were
based on value-in-use that was determined using a discounted
cash flow calculation. The cash flow projections approved by
management were based on financial plans covering a forecast
period of three years followed by a seven-year period that
reflects management’s expectations of recovery from the
market-driven mid-term decrease in sales and market
cyclicality, especially in the Mobile Networks group of CGUs,
that then converge to the steady state cash flow projection
modelled in the terminal year. The terminal growth rate
assumptions do not exceed long-term average growth rates
for the industries and economies in which the groups of
CGUs operate.
The discount rates reflect current assessments of the time
value of money and relevant market risk premiums considering
risks and uncertainties for which the future cash flow estimates
have not been adjusted. Discounted cash flow projections are
based on post-tax cash flows and post-tax discount rates,
which do not materially differ from the pre-tax basis
discounted cash flow projections. Other key variables in future
cash flow projections include assumptions on estimated sales
growth, gross margin and operating margin.
Sales growth and gross margin assumptions reflect
management expectations of addressable market growth,
market share and competitive position, as well as Nokia’s
strategy and long-term business outlook. Gross margin and
operating margin assumptions include the impact of the
ongoing transformational and cost savings initiatives, which
are expected to reduce cost base and increase operational
efficiency especially within Mobile Networks.
Terminal growth rate and post-tax discount rate applied in the
impairment test for the groups of CGUs:
Terminal growth rate
Post-tax discount rate
Key assumption %
2024
2023
2024
2023
Network Infrastructure
1.5 %
1.0 %
9.4 %
9.3 %
Mobile Networks
1.0 %
1.0 %
8.4 %
8.3 %
Cloud and Network
Services
1.5 %
1.0 %
8.0 %
7.7 %
The results of the impairment testing indicate adequate
headroom for each group of CGUs in 2024.
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4.2. Property, plant and equipment
Accounting policies
Property, plant and equipment are stated at cost less
accumulated depreciation and accumulated impairment
losses. Depreciation is recorded on a straight-line basis
over the expected useful lives of the assets as follows:
Buildings and constructions
Buildings and constructions
20–33 years
Light buildings and constructions
3–20 years
Vessels(1)
Cable-laying vessels
15–40 years
Cable-laying accessories
4–10 years
Machinery and equipment
Production machinery and measuring and
test equipment
1–5 years
Other machinery and equipment
3–10 years
(1)
Vessels relate to Submarine Networks business which is presented as a
discontinued operation. The assets of Submarine Networks business were
classified as held for sale in June 2024. Refer to Note 2.6. Discontinued
operations for more information.
Land and water areas are not depreciated.
Maintenance, repairs and renewals are generally
expensed in the period in which they are incurred.
However, major renovations are capitalized and included
in the carrying amount of the asset when it is probable
that future economic benefits in excess of the originally
assessed standard of performance of the existing asset
will flow to Nokia. Major renovations are depreciated over
the remaining useful life of the related asset. Leasehold
improvements are depreciated over the shorter of the
lease term and the useful life. Gains and losses on the
disposal of property, plant and equipment are included
in other operating income or expenses.
EURm
Land, buildings,
constructions
and vessels
Machinery,
equipment and
other
Assets under
construction
Total
2024
Acquisition cost at 1 January
1 434
3 547
167
5 148
Additions
22
230
115
367
Reclassifications
50
55
(105)
—
Disposals and retirements
(51)
(199)
(4)
(254)
Assets held for sale
(548)
(306)
(50)
(904)
Translation differences
39
63
3
105
Acquisition cost at 31 December
946
3 390
126
4 462
Accumulated depreciation at 1 January
(569)
(2 628)
—
(3 197)
Depreciation
(80)
(321)
—
(401)
Impairment
(55)
—
—
(55)
Disposals and retirements
40
190
—
230
Assets held for sale
171
223
—
394
Translation differences
(25)
(46)
—
(71)
Accumulated depreciation at 31 December
(518)
(2 582)
—
(3 100)
Net book value at 1 January
865
919
167
1 951
Net book value at 31 December
428
808
126
1 362
2023
Acquisition cost at 1 January
1 409
3 589
248
5 246
Additions
33
314
115
462
Reclassifications
107
85
(192)
—
Disposals and retirements
(88)
(374)
(1)
(463)
Translation differences
(27)
(67)
(3)
(97)
Acquisition cost at 31 December
1 434
3 547
167
5 148
Accumulated depreciation at 1 January
(575)
(2 656)
—
(3 231)
Depreciation
(90)
(358)
—
(448)
Disposals and retirements
79
333
—
412
Translation differences
17
53
—
70
Accumulated depreciation at 31 December
(569)
(2 628)
—
(3 197)
Net book value at 1 January
834
933
248
2 015
Net book value at 31 December
865
919
167
1 951
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4.3. Leases
Accounting policies
In the majority of its lease agreements, Nokia is acting
as a lessee. Nokia’s leased assets relate mostly to
commercial and industrial properties such as R&D,
production and office facilities. Nokia also leases vehicles
provided as employee benefits and service vehicles.
There are only minor lease contracts, mainly concerning
subleases of vacant leasehold or freehold facilities,
where Nokia is acting as a lessor.
As a lessee, Nokia recognizes a right-of-use asset and a
lease liability at the commencement date of the lease.
Right-of-use assets are measured at cost less
accumulated depreciation and impairment losses, and
adjusted for any remeasurements of the lease liabilities.
Right-of-use assets are depreciated on a straight-line
basis over the lease term as follows:
Buildings
3–15 years
Other
3–5 years
Lease liabilities are initially measured at the present value
of the lease payments made over the lease term. Nokia
uses its incremental borrowing rate to calculate the
present value as the interest rate implicit in the lease is
not readily determinable. Subsequently, lease liabilities
are measured on an amortized cost basis using the
effective interest method. In addition, lease liabilities are
remeasured if there is a lease modification, a change in
the lease term or a change in the future lease payments.
The interest component of the lease payments is
recognized as interest expense in financial expenses.
Nokia applies practical expedients whereby the payments
for short-term leases and leases of low-value assets are
recognized as an operating expense on a straight-line
basis over the lease term. In addition, Nokia does not
separate certain non-lease components from lease
components but instead accounts for each lease
component and associated non-lease component
as a single lease component.
Right-of-use assets
EURm
Buildings
Other
Total
2024
Acquisition cost at 1 January
1 434
275
1 709
Additions(1)
36
95
131
Assets held for sale
(25)
(47)
(72)
Retirements
(48)
(38)
(86)
Translation differences
25
1
26
Acquisition cost at 31 December
1 422
286
1 708
Accumulated depreciation at
1 January
(677)
(126)
(803)
Depreciation
(135)
(88)
(223)
Impairment
(43)
—
(43)
Assets held for sale
4
40
44
Retirements
48
38
86
Translation differences
(10)
(1)
(11)
Accumulated depreciation at
31 December
(813)
(137)
(950)
Net book value at 1 January
757
149
906
Net book value at 31 December
609
149
758
2023
Acquisition cost at 1 January
1 423
241
1 664
Additions(1)
74
129
203
Retirements
(39)
(96)
(135)
Translation differences
(24)
1
(23)
Acquisition cost at 31 December
1 434
275
1 709
Accumulated depreciation at
1 January
(589)
(146)
(735)
Depreciation
(140)
(76)
(216)
Impairment
2
—
2
Retirements
39
96
135
Translation differences
11
—
11
Accumulated depreciation at
31 December
(677)
(126)
(803)
Net book value at 1 January
834
95
929
Net book value at 31 December
757
149
906
(1) Additions comprise new lease contracts as well as modifications and
remeasurements of existing lease contracts.
Amounts recognized in the income statement
EURm
2024
2023
2022
Depreciation of right-of-use
assets(1)
(223)
(216)
(225)
Interest expense on lease
liabilities(1)
(33)
(28)
(26)
Impairment charges, net of
reversals
(43)
2
6
Total
(299)
(242)
(245)
(1)
Includes amounts related to both continuing and discontinued operations.
Amounts recognized in the income statement presented above
exclude expenses relating to short-term leases and leases of
low-value assets, income from subleasing right-of-use assets
and gains or losses arising from sale and leaseback transactions
as these are immaterial.
Amounts reported in the statement of cash flows
EURm
2024
2023
2022
Payment of principal portion of
lease liabilities(1)
(233)
(239)
(217)
Interest paid on lease liabilities(1)
(33)
(28)
(26)
Total
(266)
(267)
(243)
(1) Includes amounts related to both continuing and discontinued operations.
Amounts reported in the statement of cash flows exclude
payments for short-term leases and leases of low-value assets.
The maturity analysis of lease liabilities is presented in
Note 5.4. Financial risk management. Commitments related
to future lease contracts are presented in Note 6.1.
Commitments, contingencies and legal proceedings.
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4.4. Inventories
Accounting policies
Inventories are measured at the lower of cost and net
realizable value. Cost is determined using standard cost,
which approximates actual cost on a first-in first-out
(FIFO) basis. In addition to the cost of materials and
direct labor, an appropriate proportion of production
overheads is allocated to the cost of inventory. Net
realizable value is the estimated selling price in the
ordinary course of business less the estimated costs
necessary to make the sale.
Contract work in progress comprises costs incurred to
date for customer contracts where the contractual
performance obligations are not yet satisfied. Contract
work in progress will be recognized as cost of sales when
the corresponding revenue is recognized.
EURm
2024
2023
Raw materials and semi-finished goods
708
1 156
Finished goods
930
980
Contract work in progress
525
583
Total
2 163
2 719
Inventories recognized as an expense during the year in
respect of continuing operations was EUR 5 050 million in 2024
(EUR 7 115 million in 2023 and EUR 7 709 million in 2022).
During the year write-downs of inventories to net realizable
value totaled EUR 259 million (EUR 287 million in 2023 and
EUR 261 million in 2022) and reversals of previous inventory
write-downs totaled EUR 54 million (EUR 88 million in 2023
and EUR 98 million in 2022). The write-downs and reversals
of previous write-downs have been included in cost of sales.
Previous write-downs have been reversed primarily as a result
of changes in estimated customer demand.
The amount of inventories expected to be recovered after
more than 12 months was EUR 464 million at 31 December
2024 (EUR 666 million in 2023).
Accounting policies
Customer contracts
Nokia presents its customer contracts in the statement of
financial position as either a contract asset or a contract
liability, depending on the relationship between Nokia’s
performance and the customer’s payment for each
individual contract. On a net basis, a contract asset position
represents where Nokia has performed by transferring
goods or services to a customer before the customer has
provided the associated consideration or before payment
is due. Conversely, a contract liability position represents
where a customer has paid consideration or payment is due,
but Nokia has not yet transferred goods or services to the
customer. Contract assets presented in the statement of
financial position are current in nature while contract
liabilities can be either current or non-current.
Invoices are generally issued as control transfers and/or as
services are rendered. Invoiced receivables represent an
unconditional right to receive the consideration and only
the passage of time is required before the consideration is
received. Invoiced receivables are presented separately
from contract assets as trade receivables in the statement
of financial position. Trade receivables may be converted to
customer loan receivables in certain cases where extended
payment terms are requested. From time to time Nokia may
also extend loans to other third parties and these loans are
accounted for similarly as customer loan receivables. Nokia
sells trade receivables and customer loan receivables to
various financial institutions primarily without recourse in
the normal course of business, in order to manage credit
risk and working capital cycle.
The business model for managing trade receivables and
customer loan receivables is holding receivables to collect
contractual cash flows and selling receivables. Trade
receivables and customer loan receivables are initially
recognized and subsequently remeasured at fair value
using the discounted cash flow method.
The changes in fair value are recognized in the fair value
reserve through other comprehensive income. Interest
calculated using the effective interest method as well as
foreign exchange gains and losses are recognized in financial
income and expenses.
Discounts without performance obligations presented on
the statement of financial position in other current liabilities
relate to discounts given to customers which will be
executable upon satisfying specific criteria. As these
discounts become executable, they are netted against
related trade receivables or customer loan receivables.
Expected Credit Losses
Loss allowance for expected credit losses (ECL) is recognized
on financial assets measured at amortized cost and financial
assets measured at fair value through other comprehensive
income, as well as on financial guarantee contracts and loan
commitments. Nokia continuously assesses its financial
instruments on a forward-looking basis and accounts
for the changes in ECL on a quarterly basis using the
following method:
■
ECL = PD x LGD x EAD
■
Probability of Default (PD) is based on the credit rating
profile of the counterparties as well as specific local
circumstances as applicable, unless there are specific
events that would indicate that the credit rating would
not be an appropriate basis for estimating credit risk at
the reporting date.
■
For Loss Given Default (LGD), the recovery rate is based
on the type of receivable, specific local circumstances
as applicable and related collateral arrangements,
if any.
■
Exposure at Default (EAD) is normally the nominal value
of the receivable.
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4.5. Trade receivables and other customer-related balances
Nokia applies a simplified approach to recognize a loss
allowance based on lifetime ECL on trade receivables
and contract assets without significant financing
components. Based on quantitative and qualitative
analysis, Nokia has determined that the credit risk
exposure arising from its trade receivables is low risk.
Quantitative analysis focuses on historical loss rates,
historic and projected sales and the corresponding trade
receivables, and overdue trade receivables including
indicators of any deterioration in the recovery
expectation. Qualitative analysis focuses on all relevant
conditions, including customer and country credit rating,
to improve the accuracy of estimating lifetime ECL.
For customer loan receivables, the ECL is calculated
separately for each significant counterparty using the
method described above, including the impact of any
collateral arrangements or other credit enhancements
to LGD. The estimate is based on 12-month ECL unless
there has been a significant increase in credit risk for
the specific counterparty since the initial recognition,
in which case lifetime ECL is estimated. Breaches of
contract, credit rating downgrades and other credit
measures are typical indicators that Nokia takes into
consideration when assessing whether the credit risk on
a financial instrument has increased significantly since
initial recognition. Nokia considers additional indicators
to determine if a financial asset is credit-impaired
including whether the counterparty is in significant
financial difficulties and whether it is becoming probable
that the customer will enter bankruptcy or financial
reorganization. Typically customer loan credit risk is
higher than credit risk of trade receivables and contract
assets on average.
The change in the amount of ECL for trade receivables
and contract assets is recognized in other operating
expenses and for customer loan receivables in financial
expenses. For customer loan receivables, the loss
allowance is recorded as an adjustment in other
comprehensive income instead of adjusting the carrying
amount that has already been recorded at fair value. If
trade receivables and customer loan receivables are sold,
the impact of ECL is reversed and the difference between
the carrying amount derecognized and the consideration
received is recognized in financial expenses.
Customer-related balances
Nokia aims to ensure the highest possible quality in trade receivables and contract assets as well as customer loan receivables.
The Credit Risk Management Standard Operating Procedure, approved by the CFO, lays out the framework for the management
of business-related credit risks. The Credit Risk Management Standard Operating Procedure sets out that credit decisions are
based on credit evaluation in each business, including credit rating and limits for larger exposures, according to defined
principles. Group level limit approvals are required for material credit exposures. Credit risks are monitored in each business and,
where appropriate, mitigated on a case-by-case basis with the use of letters of credit, collaterals, sponsor guarantees, credit
insurance and sale of selected receivables.
Aging of trade receivables, contract assets, and customer financing-related loan receivables at 31 December
Past due
EURm
Current
1-30 days
31-180
days
> 180 days
Total
2024
Trade receivables(1)
4 894
163
195
213
5 465
Contract assets
694
—
—
—
694
Customer financing-related loan receivables
70
—
—
—
70
Total gross receivables
5 658
163
195
213
6 229
Expected credit loss allowance
(78)
(9)
(31)
(108)
(226)
Total net receivables
5 580
154
164
105
6 003
2023
Trade receivables(1)
4 404
157
279
430
5 270
Contract assets
1 136
—
—
—
1 136
Customer financing-related loan receivables
207
1
20
88
316
Total gross receivables
5 747
158
299
518
6 722
Expected credit loss allowance(2)
(207)
(8)
(80)
(302)
(597)
Total net receivables
5 540
150
219
216
6 125
(1) Nokia’s payment terms are 89 (104 in 2023) days on average.
(2) In 2023, the decrease in the expected credit loss allowance includes EUR 29 million transferred to other provisions.
The reversal of ECL credited to the income statement was EUR 137 million and EUR 16 million in 2024 and 2023 respectively. In
2022, ECL charged to the income statement was EUR 160 million.
At 31 December 2024, the total ECL related to credit-impaired assets amounted to EUR 62 million (EUR 396 million in 2023 and
EUR 379 million in 2022). In 2024, the reduction of ECL related to credit-impaired assets of EUR 334 million includes releases of
EUR 233 million related to assets that were written off during the year and EUR 111 million related to assets for which payments
were received.
The contractual amount outstanding on financial assets that were written off in 2024 and are still subject to enforcement activity
is EUR 68 million (EUR 0 million in 2023)
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Credit risk exposure by customer and country
Credit exposure is measured as the total of trade receivables, contract assets and loans
outstanding from customers and committed credits. Trade receivables do not include any major
concentrations of credit risk by customer.
Credit risk exposure by customer and country as % of total trade receivables and contract assets
as well as loans and loan commitments to customers:
Customer
2024
2023
Customer 1
7.5%
12.2%
Customer 2
4.9%
3.6%
Customer 3
4.7%
3.4%
Total
17.1%
19.2%
Country
2024
2023
Country 1(1)
21.5%
19.0%
Country 2
10.6%
11.7%
Country 3
5.8%
6.1%
Total
37.9%
36.8%
(1)
In 2024, Country 1 was the United States (India in 2023).
Contract assets and contract liabilities
Contract asset balances decrease upon reclassification to trade receivables when Nokia’s right
to payment becomes unconditional. Contract liability balances decrease when Nokia satisfies the
related performance obligations and revenue is recognized. There were no material cumulative
adjustments to revenue recognized arising from changes in transaction prices, changes in
measures of progress or changes in estimated variable consideration.
During the year, Nokia recognized EUR 1.5 billion (EUR 1.4 billion in 2023) of revenue that was
included in the current contract liability balance at the beginning of the period. The amount
includes EUR 0.1 billion (EUR 0.2 billion in 2023) related to discontinued operations sold in 2024.
4.6. Other receivables and liabilities
Other non-current receivables
EURm
2024
2023
R&D tax credits
144
127
Indirect tax receivables
27
45
Other
39
41
Total
210
213
Other current receivables
EURm
2024
2023
VAT and other indirect tax receivables
300
302
Prepayments related to contract manufacturing
126
128
IT-related prepaid expenses
47
59
R&D tax credits and grant receivables
43
46
Divestment-related receivables
23
28
Other
228
201
Total
767
764
Other non-current liabilities
EURm
2024
2023
Salaries, wages and social charges
30
42
Other
87
69
Total
117
111
Other current liabilities
EURm
2024
2023
Salaries, wages and social charges
1 531
1 176
Accrued expenses related to customer projects(1)
245
442
Discounts without performance obligations
380
404
VAT and other indirect tax payables
314
323
Other(2)
413
479
Total
2 883
2 824
(1)
The comparative amount for 2023 includes EUR 169 million related to discontinued operations.
(2)
Includes accrued logistics, R&D and IT expenses.
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4.7. Provisions
Accounting policies
Provision is recognized when Nokia has a present legal or
constructive obligation as a result of past events, it is
probable that an outflow of resources will be required
to settle the obligation and a reliable estimate of the
amount can be made. Management judgment may be
required in determining whether it is probable that an
outflow of economic benefits will be required to settle
the obligation. The amount recognized as a provision
is based on the best estimate of unavoidable costs
required to settle the obligation at the end of the
reporting period.
When estimating the amount of unavoidable costs,
management may be required to consider a range of
possible outcomes and their associated probabilities,
risks and uncertainties surrounding the events and
circumstances, as well as making assumptions about the
timing of payment. Changes in estimates of timing or
amounts of costs required to settle the obligation may
become necessary as time passes and/or more accurate
information becomes available. Nokia assesses the
adequacy of its existing provisions and adjusts the
amounts as necessary based on actual experience
and changes in facts and circumstances at each
reporting date.
EURm
Restructuring
Litigation and
environmental(1)
Warranty
Material liability
Other
Total
1 January 2024
255
251
200
136
420
1 262
Charged to income statement
Additions
397
69
214
144
68
892
Reversals
(9)
(23)
(19)
(82)
(56)
(189)
Total charged/(credited) to income statement
388
46
195
62
12
703
Utilized during year(2)
(424)
(64)
(128)
(53)
(34)
(703)
Translation differences and other
—
9
(37)
—
(6)
(34)
31 December 2024
219
242
230
145
392
1 228
Non-current
89
151
19
—
220
479
Current
130
91
211
145
172
749
(1)
Environmental provision was EUR 152 million at 31 December 2024 (EUR 154 million at 31 December 2023).
(2)
The utilization of restructuring provision includes items transferred to accrued expenses, of which EUR 67 million remained in accrued expenses at 31 December 2024.
Restructuring provision
Nokia provides for the estimated cost to restructure when a detailed formal plan of restructuring has been completed, approved
by management, and announced. Restructuring costs consist primarily of personnel restructuring charges. The other main
components are costs associated with exiting real estate locations, and costs of terminating certain other contracts directly
linked to the restructuring. At 31 December 2024, the restructuring provision consists primarily of amounts related to the
announcements made by Nokia on 16 March 2021 and 19 October 2023. The majority of the restructuring cash outflows is
expected to occur over the next two years.
Litigation and environmental provisions
Nokia provides for the estimated future settlements related to legal proceedings based on the probable outcome of the claims.
Nokia also provides for environmental remediation when Nokia becomes obliged, legally or constructively, to rectify
environmental damage relating to soil, groundwater, surface water or sediment contamination. Cash outflows related to the
litigation and environmental liabilities are inherently uncertain and generally occur over several periods. For a presentation of
legal matters potentially affecting Nokia, refer to Note 6.1. Commitments, contingencies and legal proceedings.
Warranty provision
Nokia provides for the estimated liability to repair or replace products under standard warranty at the time revenue is
recognized. The provision estimate is based on historical experience of the level of repairs and replacements. Cash outflows
related to the warranty provision are generally expected to occur in the next 18 months.
Material liability provision
Nokia recognizes the estimated liability for non-cancellable purchase commitments for inventory in excess of forecasted requirements
at each reporting date. Cash outflows related to the material liability provision are expected to occur over the next 12 months.
Other provisions
Nokia provides for various legal and constructive obligations such as project losses, indirect tax provisions, divestment-related
provisions, certain other employee-related provisions than restructuring provisions and asset retirement obligations. Cash
outflows related to other provisions are generally expected to occur over the next two years.
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Section 5
Capital and
financial
instruments
This section provides information on shareholders’
equity, shareholders’ remuneration and Nokia’s
capital management objectives. Furthermore, this
section comprises the policies and disclosures related
to Nokia’s financial assets and liabilities and hedge
accounting as well as information on Nokia’s financial
risks and financial risk management principles
and objectives.
5.1. Equity
Shares and share capital
Share capital
Nokia Corporation has one class of shares. Each share entitles
the holder to one vote at general meetings. The shares
have no par value nor is there a minimum or maximum share
capital or number of shares under the Articles of Association
of Nokia Corporation. The share capital amounted to
EUR 245 896 461.96 at 31 December 2024 and 2023,
and consisted of 5 605 850 345 (5 613 496 565 in 2023)
issued and fully paid shares.
In 2024, Nokia Corporation issued in a directed share issue
150 000 000 (59 500 000 in 2023) new shares to itself without
consideration and canceled 157 646 220 (78 301 011 in 2023
related to the second phase of the 2022 program) shares it
had repurchased during the year under its share buyback
program announced in January 2024.
Share premium
Share premium reserve consists of the share premium
account of the Parent Company. In addition, the equity impact
corresponding to the employee services received related to the
equity-settled share-based compensation plans is recorded in
the share premium reserve.
Treasury shares
At 31 December 2024, the number of Nokia shares held by
the Group companies was 232 700 997 (87 895 712 in 2023)
representing 4.2% (1.6% in 2023) of the share capital and total
voting rights.
In 2024, Nokia repurchased 176 832 266 shares under the
share buyback programs announced in January and November
2024 (78 301 011 in 2023 under the second phase of the
2022 program). The shares repurchased under the January
2024 program were canceled in December 2024. In addition,
Nokia Corporation transferred without consideration
24 380 761 (16 885 827 in 2023) shares held by the Company
to employees, including certain members of the Group
Leadership Team, as settlement of the Group’s equity-based
incentive plans and the employee share purchase plan.
Number of shares outstanding at the beginning and at the
end of the period
Number of shares 000s
2024
2023
2022
1 January
5 525 601 5 587 016 5 634 993
Settlement of share-based
payments
24 380
16 886
15 986
Acquisition of treasury shares
(176 832)
(78 301)
(63 963)
31 December
5 373 149 5 525 601 5 587 016
On 28 February 2025, Nokia completed the acquisition of
Infinera Corporation. Refer to Note 6.5. Subsequent events for
more information. The aggregated consideration transferred
included 127 434 986 Nokia shares in the form of American
Depository Shares. The shares transferred were treasury
shares held by Nokia Corporation. Considering all share
issuances and repurchases of shares under the on-going share
buyback program during 1 January – 28 February 2025, the
number of shares outstanding has increased by 85 959 508
shares.
Nature and purpose of other equity reserves
Translation differences
Translation differences consist of foreign exchange differences
arising from translation of foreign operations into euro, the
presentation currency of the consolidated financial statements,
as well as gains and losses related to hedging of net investments
in foreign operations.
Fair value and other reserves
Pension remeasurements
Pension remeasurements reserve includes actuarial gains
and losses as well as return on plan assets and changes in the
effect of the asset ceiling, excluding amounts recognized in net
interest, related to Nokia’s defined benefit plans.
Hedging reserve
Hedging reserve includes the change in fair value that reflects
the change in spot exchange rates for certain foreign exchange
forward contracts and foreign exchange options, as well as the
part of cross-currency swaps that is designated as a cash flow
hedge to the extent that the hedges are effective.
Cost of hedging reserve
Cost of hedging reserve includes the forward element of
foreign exchange forward contracts and the time value of
foreign exchange options related to cash flow hedging of
forecast foreign currency sale and purchase transactions.
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Additionally, cost of hedging reserve includes the difference
between the change in fair value of the forward element of
foreign exchange forward contracts and the time value of
option contracts and the amortization of the forward element
of foreign exchange forward contracts and time value of option
contracts related to net investment hedging. Cost of hedging
reserve also includes changes in fair value from foreign
currency basis spread related to fair value hedging of foreign
currency denominated bonds.
Fair value reserve
Fair value reserve includes the changes in fair value of financial
instruments that are managed in a portfolio with a business
model of holding financial instruments to collect contractual
cash flows including principal and interest, as well as selling
financial instruments. The fair value changes recorded in fair
value reserve for these instruments are reduced by amounts
of loss allowances.
Reserve for invested unrestricted equity
The reserve for invested unrestricted equity includes that
part of the subscription price of issued shares that according
to the share issue decision is not to be recorded to the share
capital as well as other equity inputs that are not recorded to
some other reserve. The amount received for treasury shares
is recorded to the reserve for invested unrestricted equity,
unless it is provided in the share issue decision that it is to
be recorded in full or in part to the share capital. The Nokia
shares repurchased under the ongoing share buyback
program are funded using funds in the reserve for invested
unrestricted equity.
Other equity
Retained earnings
Retained earnings is the net total of previous years’ profits
and losses less dividends paid to the shareholders.
Non-controlling interests
Non-controlling interests represent the share of net assets of
certain subsidiaries attributable to their minority shareholders.
For more information on the contractual arrangement related
to the ownership interests in the Nokia Shanghai Bell Group,
refer to Note 6.3. Significant partly-owned subsidiaries.
Changes in other comprehensive income by component of equity
Fair value and other reserves
EURm
Translation
differences(1)
Pension
remeasurements
Hedging reserve
Cost of hedging
reserve
Fair value
reserve
1 January 2022
(396)
4 242
(7)
(1)
(15)
Foreign exchange translation differences
697
—
—
—
—
Net investment hedging losses
(147)
—
—
—
—
Remeasurements of defined benefit plans
—
(349)
—
—
—
Net fair value gains/(losses)
—
—
24
(27)
(208)
Transfer to income statement
14
—
61
10
175
Movement attributable to non-controlling interests
1
—
—
—
—
31 December 2022
169
3 893
78
(18)
(48)
Foreign exchange translation differences
(547)
—
—
—
—
Net investment hedging gains
105
—
—
3
—
Remeasurements of defined benefit plans
—
(261)
—
—
—
Net fair value gains/(losses)
—
—
2
(25)
(87)
Transfer to income statement
19
—
(66)
38
96
Movement attributable to non-controlling interests
5
—
—
—
—
31 December 2023
(249)
3 632
14
(2)
(39)
Foreign exchange translation differences
623
—
—
—
—
Net investment hedging losses
(31)
—
—
(1)
—
Remeasurements of defined benefit plans
—
326
—
—
—
Net fair value gains/(losses)
—
—
20
(1)
66
Transfer to income statement
(78)
—
(19)
19
(52)
Movement attributable to non-controlling interests
(2)
—
—
—
—
31 December 2024
263
3 958
15
15
(25)
(1)
At 31 December 2024, translation differences include a EUR 154 million gain related to net investment hedging (EUR 186 million gain in 2023 and EUR 80 million gain in
2022).
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Capital management
For capital management purposes Nokia defines capital as
total equity and interest-bearing liabilities less cash and cash
equivalents, current interest-bearing financial investments
and non-current interest-bearing financial investments.
The main objectives of Nokia’s capital management are to
maintain a solid overall financial position and to ensure
sufficient financial flexibility to execute Nokia’s long-term
business strategy and to provide returns to shareholders.
From a cash perspective, Nokia aims to maintain the balance
of its cash and cash equivalents and interest-bearing financial
investments less interest-bearing liabilities at 10-15% of
annual net sales over time. To support these objectives,
Nokia aims to maintain investment grade credit ratings.
At 31 December 2024, Nokia’s long-term credit ratings are
BBB- (stable) by Fitch, Ba1 (stable) by Moody’s, and BBB-
(stable) by S&P Global.
With regards to shareholder remuneration, Nokia targets
recurring, stable and over time growing ordinary dividend
payments, taking into account the previous year’s earnings as
well as the Company’s financial position and business outlook.
Nokia may also use share repurchases as a tool to manage
its capital structure through the reduction of capital and
distribute excess cash to the shareholders.
Distribution of funds
Nokia distributes funds to its shareholders in two ways:
a) as dividends from retained earnings and/or as assets
from the reserve for invested unrestricted equity, and b) by
repurchasing shares using funds in the unrestricted equity.
The amount of any distribution is limited to the Parent
Company's distributable funds and subject to its solvency,
and may not exceed the amount proposed by the Board
of Directors.
Dividend and/or assets from the reserve for unrestricted
invested equity
For the financial year 2024
Nokia’s Board of Directors proposes to the Annual General
Meeting 2025 that no dividend is distributed by a resolution of
the AGM for the financial year ended on 31 December 2024.
Instead, the Board proposes to be authorized to decide, in its
discretion, on the distribution of an aggregate maximum of
EUR 0.14 per share as dividend from the retained earnings and/
or as assets from the reserve for invested unrestricted equity.
The authorization would be used to distribute dividend and/or
assets from the reserve for invested unrestricted equity in four
installments during the period of validity of the authorization
unless the Board decides otherwise for a justified reason.
Distributions of dividend and/or assets from the reserve for
invested unrestricted equity are recognized as a reduction
of equity and a liability when the Board has decided on the
distribution. On the date of issuing the financial statements for
2024, the total number of Nokia shares is 5 605 850 345 and,
consequently, the total amount of distribution would be EUR
785 million. The total number of shares includes the shares
held by the Parent Company which are not entitled to a
distribution.
For the financial year 2023
The AGM in 2024 resolved to authorize the Board of Directors
to decide on the distribution of an aggregate maximum
of EUR 0.13 per share as dividend and/or as assets from the
reserve of invested unrestricted equity for the financial year
2023. The authorization was used to distribute a dividend in
four installments. During 2024, three installments of dividend
were distributed amounting to EUR 0.10 per share and
EUR 548 million in total. The fourth installment of EUR 0.03 per
share and EUR 161 million in total was paid in February 2025.
The total amount of dividend paid for the financial year 2023
was EUR 709 million.
For the financial year 2022
For the financial year 2022, a total dividend of EUR 665 million,
corresponding to EUR 0.12 per share, was paid.
Share buyback programs
November 2024 program
In November 2024, Nokia launched a share buyback program
to offset the dilutive effect of the acquisition of Infinera
Corporation announced on 27 June 2024. The program targets
to repurchase 150 million shares for an aggregate purchase
price not exceeding EUR 900 million. The repurchases
commenced on 25 November 2024 and will end latest by
31 December 2025. By 31 December 2024, Nokia has
repurchased 19 186 046 shares under the program for an
average price per share of EUR 4.14.
The repurchases will be funded using funds in the reserve
for invested unrestricted equity in accordance with the
authorization given to the Board of Directors by the AGM,
and hence the repurchases will reduce Nokia's total
unrestricted equity. The repurchased shares will be canceled.
January 2024 program
In January 2024, Nokia’s Board of Directors initiated a share
buyback program targeting to return up to EUR 600 million of
cash to shareholders in tranches over a period of two years.
The purchases under the first phase of the program
commenced on 20 March 2024. In July 2024, Nokia announced
it had decided to accelerate the repurchases in a way that the
whole share buyback program would be completed by the end
of 2024. During the program, which ended on 21 November
2024, Nokia repurchased 157 646 220 shares. The aggregate
purchase price of all shares acquired was EUR 600 million, and
the average price per share was EUR 3.81.
The repurchases were funded using funds in the reserve for
invested unrestricted equity, and hence the repurchases
reduced Nokia’s total unrestricted equity. The repurchased
shares were canceled in December 2024.
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The 2022 program
In February 2022, Nokia’s Board of Directors initiated a share
buyback program targeting to return up to EUR 600 million of
cash to shareholders in tranches over a period of two years.
In the first phase of the program, which was launched on
11 February 2022 and which ended on 11 November 2022,
Nokia repurchased 63 963 583 shares. The aggregate purchase
price of all shares acquired in the first phase was EUR 300 million
and the average price per share was EUR 4.69. The repurchased
shares were canceled in December 2022.
In the second phase of the program, which was launched on
2 January 2023 and which ended on 10 November 2023,
Nokia repurchased 78 301 011 shares. The aggregate purchase
price of all shares acquired under the second phase of the
program was EUR 300 million, and the average price per share
was EUR 3.83. The repurchased shares were canceled in
November 2023.
The repurchases were funded using funds in the reserve for
invested unrestricted equity, and hence the repurchases
reduced Nokia’s total unrestricted equity.
Authorizations given to the Board of Directors
The following authorizations related to the issue and
repurchase of shares were given to the Board of Directors at
the AGM held on 3 April 2024.
Authorization to issue shares and special rights entitling
to shares
The shareholders authorized the Board to issue a maximum
of 530 million shares, corresponding to less than 10% of the
total number of Nokia’s shares, through issuance of shares or
special rights entitling to shares in one or more issues during
the effective period of the authorization. The Board is
authorized to issue either new shares or shares held by Nokia.
Shares and special rights entitling to shares may be issued in
deviation from the shareholders’ pre-emptive rights within the
limits set by law. The authorization may be used to develop
Nokia’s capital structure, diversify the shareholder base,
finance or carry out acquisitions or other arrangements,
settle Nokia’s equity-based incentive plans or for other
purposes resolved by the Board of Directors.
The authorization is effective until 2 October 2025, and it
terminated the previous authorizations to issue shares and
special rights entitling to shares.
Authorization to repurchase shares
The shareholders authorized the Board to repurchase a
maximum of 530 million shares, corresponding to less than
10% of the total number of Nokia’s shares, using funds in the
unrestricted equity, which means that the repurchases will
reduce Nokia’s distributable funds. The price paid for the
shares under the authorization shall be based on the market
price of Nokia shares on the securities markets on the date of
the repurchase or a price otherwise formed in a competitive
process. Shares may be repurchased to be cancelled, held to be
reissued, transferred further or for other purposes resolved by
the Board of Directors. The Company may enter into derivative,
share lending or other arrangements customary in capital
market practice. The shares may be repurchased otherwise
than in proportion to the shares held by the shareholders.
The Board shall resolve on all other matters related to the
repurchase of Nokia shares.
The authorization is effective until 2 October 2025, and it
terminated the previous authorization to repurchase shares
to the extent that the Board has not previously resolved to
repurchase shares based on such authorization.
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5.2. Financial assets and liabilities
Accounting policies
Fair value
Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
Financial assets and liabilities measured at fair value are
categorized based on the availability of observable inputs
used to measure their fair value. Three hierarchical levels
are based on an increasing amount of judgment associated
with the inputs used to derive fair valuation for these assets
and liabilities, Level 1 being market values for exchange
traded products, Level 2 being primarily based on publicly
available market information and Level 3 requiring most
management judgment.
The fair value of an asset or a liability is measured using
the assumptions that market participants would use
when pricing the asset or liability, assuming that market
participants act in their economic best interest, by using
quoted market rates, discounted cash flow analyses and
other appropriate valuation models. Nokia uses valuation
techniques that are appropriate in the circumstances and
for which sufficient data is available to measure fair value,
maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs. At the end of
each reporting period, all financial assets and liabilities, that
are either measured at fair value on a recurring basis or for
which fair values are disclosed in the financial statements,
are categorized within the fair value hierarchy based on
the lowest level input that is significant to the fair value
measurement as a whole.
Classification and measurement
Financial assets
Nokia classifies its financial assets that are debt instruments
in the following three categories: financial assets measured
at amortized cost, financial assets measured at fair value
through other comprehensive income, and financial assets
measured at fair value through profit and loss. The selection
of the appropriate category is made based on both Nokia’s
business model for managing the financial asset and on the
contractual cash flow characteristics of the asset. Equity
instruments and derivative financial assets are measured
at fair value through profit and loss.
Nokia’s business model for managing financial assets is defined
on a portfolio level. The business model must be observable on
a practical level by the way the business is managed. The cash
flows of financial assets measured at amortized cost are solely
payments of principal and interest. These assets are held within
a business model that has an objective to hold assets to collect
contractual cash flows. Financial assets measured at fair value
through other comprehensive income have cash flows that are
solely payments of principal and interest, and these assets are
held within a business model that has an objective that is
achieved both by holding financial assets to collect contractual
cash flows and selling financial assets. For these categories,
a loss allowance is calculated on a quarterly basis based on a
review of collectability (probability of default) and available
collateral (loss given default) for the asset, recorded as an
adjustment to the carrying amount of the asset and recognized
in other financial expenses in the income statement.
Financial assets measured at fair value through profit and loss
are assets that do not fall in either of the categories in the
paragraph above. Additionally, the accounting for financial
assets depends on whether the financial asset is part of a
hedging relationship (refer to Note 5.3. Derivative and firm
commitment assets and liabilities).
All purchases and sales of financial assets are recorded on
the trade date, i.e. when Nokia commits to purchase or sell
the asset. All financial assets are initially measured at fair
value and subsequently remeasured according to their
classification. Subsequently, instruments classified as fair
value through profit or loss and instruments classified as fair
value through other comprehensive income are remeasured
at fair value, while instruments classified as amortized cost
are remeasured using the effective interest rate method.
For instruments classified as fair value through profit or
loss, the fair value adjustments and foreign exchange gains
and losses are recognized in the income statement either in
other operating income and expenses or financial income
and expenses as determined by the purpose of the
instruments. For instruments classified as fair value through
other comprehensive income, changes in fair value are
recognized in the fair value reserve through other
comprehensive income (refer to Note 5.1. Equity).
For instruments classified as amortized cost, interest
calculated using the effective interest method, as well as
foreign exchange gains and losses, are recognized in
financial income and expenses in the income statement.
A financial asset is derecognized when substantially all the
risks and rewards related to the financial asset have been
transferred to a third party that assumes control of the
asset. On derecognition of a financial asset, the difference
between the carrying amount and the consideration
received is recognized in the income statement either in
other operating income and expenses or financial income
and expenses as determined by the purpose of the
instrument. The FIFO method is used to determine the
cost basis of financial assets at amortized cost that are
disposed of.
Financial liabilities
Nokia classifies its financial liabilities as financial liabilities
measured at amortized cost except for derivative liabilities
and the conditional obligation related to Nokia Shanghai
Bell, which are classified as financial liabilities at fair value
through profit and loss.
All financial liabilities are initially recognized at fair value and,
in the case of borrowings and payables, net of transaction
costs. Financial liabilities are subsequently remeasured
according to their classification.
For financial liabilities measured at amortized cost, interest
calculated using the effective interest method, as well as
foreign exchange gains and losses, are recognized in
financial income and expenses in the income statement.
Financial liabilities are derecognized when the related
obligation is discharged, canceled or expired. Additionally, a
substantial modification of the terms of an existing financial
liability is accounted for as a derecognition of the original
financial liability and the recognition of a new financial
liability. On derecognition of a financial liability, the
difference between the carrying amount extinguished and
the consideration paid is recognized in financial income or
expenses in the income statement.
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Fair value of financial instruments
2024
2023
Carrying amounts
Fair value(1)
Carrying amounts
Fair value(1)
Fair value through profit or loss
Fair value
through other
comprehensive
income(2)
Fair value through profit or loss
Fair value
through other
comprehensive
income(2)
EURm
Amortized cost
Level 1
Level 2
Level 3
Level 2
Total
Total
Amortized cost
Level 1
Level 2
Level 3
Level 2
Total
Total
Non-current interest-bearing financial investments
457
—
—
—
—
457
466
715
—
—
—
—
715
717
Investments in venture funds
—
—
—
865
—
865
865
—
5
—
779
—
784
784
Other non-current financial assets
179
—
97
—
40
316
316
161
—
96
—
59
316
316
Other current financial assets
315
92
—
—
25
432
432
263
—
—
—
22
285
285
Derivative assets(3)
—
—
197
—
—
197
197
—
—
134
—
—
134
134
Trade receivables(4)
—
—
—
—
5 248
5 248
5 248
—
—
—
—
4 921
4 921
4 921
Current interest-bearing financial investments
486
— 1 175
—
—
1 661
1 661
874
—
691
—
—
1 565
1 565
Cash and cash equivalents
5 251
— 1 372
—
—
6 623
6 623
4 791
— 1 443
—
—
6 234
6 234
Total financial assets
6 688
92 2 841
865
5 313
15 799
15 808
6 804
5 2 364
779
5 002
14 954
14 956
Long-term interest-bearing liabilities
2 918
—
—
—
—
2 918
2 986
3 637
—
—
—
—
3 637
3 614
Other long-term financial liabilities
33
—
—
45
—
78
78
33
—
—
28
—
61
61
Short-term interest-bearing liabilities
969
—
—
—
—
969
969
554
—
—
—
—
554
555
Other short-term financial liabilities
883
—
—
488
—
1 371
1 371
65
—
—
471
—
536
536
Derivative liabilities(3)
—
—
299
—
—
299
299
—
—
286
—
—
286
286
Discounts without performance obligations(4)
380
—
—
—
—
380
380
404
—
—
—
—
404
404
Trade payables
3 213
—
—
—
—
3 213
3 213
3 423
—
—
—
—
3 423
3 423
Total financial liabilities
8 396
—
299
533
—
9 228
9 296
8 116
—
286
499
—
8 901
8 879
(1)
The following fair value measurement methods are used for items not carried at fair value: The fair values of long-term interest-bearing liabilities, including current portion, are primarily based on publicly available market information (level 2). The fair values of other
assets and liabilities, including loan receivables and loans payable, are primarily based on discounted cash flow analysis (level 2). The fair value is estimated to equal the carrying amount for short-term financial assets and financial liabilities due to limited credit risk and
short time to maturity.
(2)
No financial instruments measured at fair value through other comprehensive income are categorized in fair value hierarchy level 1 or level 3.
(3)
For further information on derivative assets and liabilities, refer to Note 5.3. Derivative and firm commitment assets and liabilities.
(4)
For further information on trade receivables and discounts without performance obligation, refer to Note 4.5. Trade receivables and other customer-related balances.
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Financial assets
Interest-bearing financial investments
Nokia invests a portion of the corporate cash needed to cover
the projected cash outflows of its ongoing business operations
in highly liquid, interest-bearing investments. Interest-bearing
financial investments may include investments measured at
amortized cost and investments measured at fair value
through profit and loss.
Non-current interest-bearing financial investments are
investments in highly liquid corporate bonds that are long-term
in nature based on their initial maturity and are measured at
amortized cost using the effective interest method.
Current interest-bearing financial investments in bank
deposits, as well as fixed income and money market securities
with an initial maturity or put feature longer than three
months, that have characteristics of solely payments of
principal and interest and are not part of structured
investments, are managed in a portfolio with a business model
of holding investments to collect principal and interest and
are measured at amortized cost using the effective interest
method. These investments are executed with the main
purpose of collecting contractual cash flows and principal
repayments. However, investments are sold from time to time
for liquidity management and market risk mitigation purposes.
Current interest-bearing financial investments may also include
money market funds that do not qualify as cash equivalents,
investments acquired for trading purposes, investment
structures consisting of securities traded in combination with
derivatives with complementing and typically offsetting risk
factors and other investments that have cash flows not being
solely payments of principal and interest. These investments
are executed for capital appreciation and other investment
returns and can be sold at any time. These investments are
classified as fair value through profit or loss, with fair value
adjustments, foreign exchange gains and losses and realized
gains and losses recognized in financial income and expenses
in the income statement. The fair values of these investments
are based on publicly available market information.
Corporate cash investments in bank deposits used as collateral
for derivative transactions are measured at amortized cost
using the effective interest method.
Other financial assets
Other non-current financial assets include unlisted private
equity and unlisted venture fund investments, including
investments managed by NGP Capital which specializes in
growth-stage investing. These investments do not fulfill the
criteria of being solely payments of principal and interest
and they are classified as investments at fair value through
profit and loss. The fair value of these level 3 investments is
determined using one or more valuation techniques where
the use of the market approach generally consists of using
comparable market transactions, while the use of the income
approach generally consists of calculating the net present
value of expected future cash flows.
For unlisted funds, the selection of appropriate valuation
techniques by the fund managing partner may depend on the
availability and reliability of relevant inputs. In some cases,
one valuation technique may provide the best indication
of fair value while in other circumstances multiple valuation
techniques may be appropriate.
Inputs generally considered include the original transaction
price, recent transactions in the same or similar instruments,
completed or pending third-party transactions in the
underlying investment or comparable issuers, subsequent
rounds of financing, recapitalizations or other transactions
undertaken by the issuer, offerings in the equity or debt capital
markets, and changes in financial ratios or cash flows, adjusted
as appropriate for liquidity, credit, market and/or other risk
factors. The fair value may be adjusted to reflect illiquidity and/
or non-transferability, with the amount of such discount
estimated by the managing partner in the absence of
market information.
Level 3 investments are remeasured at each reporting date
taking into consideration any changes in estimates, projections
and assumptions, as well as any changes in economic and other
relevant conditions. These investments include approximately
50 separate venture funds investing in hundreds of individual
companies in various sectors and geographies, focusing on 5G,
digital health, software and enterprise sectors.
Hence, specific estimates and assumptions used by managing
partners in the absence of observable inputs do impact the
fair value of individual investments, but no individual input
has a significant impact on the aggregated fair value of
level 3 investments.
Fair value adjustments, foreign exchange gains and losses,
and realized gains and losses from the disposal of these
investments are recognized in other operating income and
expenses in the income statement.
From time to time Nokia may have investments in listed equity
shares classified as level 1 investments. These are exchange
traded products with quoted prices readily and regularly
available from an exchange representing actual and regularly
occurring market transactions on an arm’s-length basis.
Other non-current financial assets also include restricted
assets and other receivables, customer financing-related loan
receivables (refer to note 4.5. Trade receivables and other
customer-related balances) and certain other financial assets
of a long-term nature.
Restricted assets and other receivables include restricted bank
deposits primarily related to employee benefits as well as other
loan receivables measured at amortized cost using the
effective interest method.
The cash flows of certain other financial assets of a long-term
nature do not fulfill the criteria of being solely payments of
principal and interest. These investments are measured at fair
value using quoted market rates, discounted cash flow models
or other appropriate valuation methods as of the reporting
date. Fair value adjustments, foreign exchange gains and
losses, and realized gains and losses from the disposal of
these investments are mainly recognized in financial income
and expenses in the income statement.
Other current financial assets include the current part of
other non-current financial assets as well as short-term loan
receivables measured at amortized cost using the effective
interest method.
Cash and cash equivalents
Cash and cash equivalents include cash at bank and in hand
as well as highly liquid, fixed income and money market
investments that are readily convertible to known amounts of
cash with maturities at acquisition of three months or less, as
well as bank deposits with maturities or contractual call periods
at acquisition of three months or less. Due to the high credit
quality and short-term nature of these investments, there is
an insignificant risk of change in value. Investments in money
market funds that have a risk profile consistent with the
aforementioned criteria are also classified as cash equivalents.
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Investments that have cash flows that are solely payments of
principal and interest are measured at amortized cost using the
effective interest method whereas all other investments are
classified as fair value through profit and loss, with fair value
adjustments and foreign exchange gains and losses recognized
in financial income and expenses in the income statement.
The fair values of these investments are based on publicly
available market information.
Financial liabilities
Interest-bearing liabilities
Long-term and short-term interest-bearing liabilities are
measured at amortized cost using the effective interest
method. Long-term and short-term interest-bearing liabilities
include issued bonds and other borrowings. Short-term
interest-bearing liabilities also include the current portion
of long-term interest-bearing liabilities and collaterals for
derivative transactions.
Other financial liabilities
Other financial liabilities include a liability related to Nokia's
share buyback program reflecting Nokia’s commitment under
the agreement with a third-party broker conducting the share
repurchases on Nokia’s behalf.
Other financial liabilities also include a liability for acquiring
China Huaxin's ownership interest in Nokia Shanghai Bell. This
financial liability is measured based on the expected future
cash settlement with any changes recorded in financial income
and expenses in the income statement. The measurement
of this level 3 financial liability involves estimation of the
acquisition price and the distribution of excess cash balances.
Unobservable valuation inputs include certain financial
performance metrics of Nokia Shanghai Bell. No individual
input has a significant impact on the total fair value.
Trade payables
Trade payables are carried at invoiced amount in the statement
of financial position. Trade payables include balances payable
to suppliers under reverse factoring arrangements with
financial institutions. These balances are classified as trade
payables and the related payments as cash flows from
operating activities (refer to Note 5.4. Financial risk
management).
Interest-bearing loans and other borrowings
All borrowings presented in the table below are senior unsecured and have no financial covenants.
Carrying amount EURm(1)
Issuer/borrower
Instrument
Currency
Nominal (million)
Final maturity
2024
2023
Nokia Corporation
2.00% Senior Notes
EUR
378
3/2024
—
375
Nokia Corporation
EIB R&D Loan
EUR
500
2/2025
500
500
Nokia Corporation
NIB R&D Loan
EUR
83
5/2025
83
167
Nokia Corporation
2.375% Senior Notes
EUR
292
5/2025
292
289
Nokia Corporation
2.00% Senior Notes
EUR
630
3/2026
624
614
Nokia Corporation
4.375% Senior Notes
USD
500
6/2027
458
430
Nokia of America Corporation
6.50% Senior Notes
USD
74
1/2028
71
67
Nokia Corporation
3.125% Senior Notes
EUR
500
5/2028
487
479
Nokia of America Corporation
6.45% Senior Notes
USD
206
3/2029
199
187
Nokia Corporation
4.375% Sustainability-
linked Senior Notes(2)
EUR
500
8/2031
513
510
Nokia Corporation
NIB R&D Loan(3)
EUR
100
10/2032
100
—
Nokia Corporation
6.625% Senior Notes
USD
500
5/2039
455
463
Nokia Corporation and various subsidiaries
Other borrowings
105
110
Total
3 887
4 191
(1)
Carrying amount includes EUR 46 million of fair value losses (EUR 31 million in 2023) related to fair value hedge accounting relationships, including EUR 137 million of fair value
gains (EUR 156 million in 2023) related to discontinued fair value hedge accounting relationships that are amortized over the life of the respective senior notes.
(2)
The bond has a one-time redemption premium at maturity of EUR 4 million in case Nokia does not meet its commitment to reduce its greenhouse gas (GHG) emissions (in
tCO2e) across its value chain (Scope 1, 2, and 3) by 50% between 2019 and 2030. This target is one of Nokia’s key sustainability targets and has been selected to be the
Sustainability Performance Target in Nokia’s Sustainable Finance Framework that enables the issuance of sustainability-linked financing instruments.
(3)
In October 2024, Nokia signed a loan facility agreement of EUR 250 million with the Nordic Investment Bank (NIB) for financing research and development of 5G and 6G
technology. As of 31 December 2024, EUR 100 million has been drawn from the facility and is repayable in two equal installments in 2031 and 2032. The availability period of
the remaining loan facility of EUR 150 million ends in April 2025.
Changes in level 3 financial assets and liabilities measured at fair value for continuing operations
2024
2023
EURm
Financial assets
Financial liabilities
Financial assets
Financial liabilities
1 January
779
(499)
823
(550)
Net gains/(losses) in income statement
40
(25)
(76)
31
Additions(1)
96
(13)
56
—
Deductions(1)
(45)
16
(24)
19
Transfers out of level 3
(5)
—
—
—
Other movements
—
(12)
—
1
31 December
865
(533)
779
(499)
(1)
For level 3 financial assets, additions mainly include capital contributions to venture funds and deductions mainly include distributions from venture funds.
A net gain of EUR 17 million (net loss of EUR 42 million in 2023) related to level 3 financial instruments held at 31 December was
included in the profit and loss during 2024.
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5.3. Derivative and firm commitment assets and liabilities
Accounting policies
Fair value
All derivatives are recognized initially at fair value on the
date a derivative contract is entered into and subsequently
remeasured at fair value. The method of recognizing
the resulting gain or loss varies according to whether
the derivatives are designated and qualify under
hedge accounting.
Foreign exchange forward contracts are valued at market-
forward exchange rates. Changes in fair value are measured
by comparing these rates with the original contract-forward
rate. Currency options are valued at each reporting date
by using the Garman & Kohlhagen option valuation model.
Interest rate swaps and cross-currency swaps are valued
using the discounted cash flow method.
Hedge accounting
Nokia applies hedge accounting on certain foreign exchange
forward contracts, options or option strategies, and interest
rate derivatives. Qualifying options and option strategies
have zero net premium, or a net premium paid. For option
structures, the critical terms of the purchased and written
options are the same and the notional amount of the
written option component is not greater than that of the
purchased option.
In the fair valuation of foreign exchange forward contracts,
Nokia separates the forward element and considers it to be
the cost of hedging for foreign exchange forward contracts.
In the fair valuation of foreign exchange option contracts,
Nokia separates the time value and considers it to be the
cost of hedging for foreign exchange option contracts. In
the fair valuation of cross-currency swaps, Nokia separates
the foreign currency basis spread and considers it to be the
cost of hedging for cross-currency swaps.
Hedge effectiveness is assessed at inception and
subsequently on a quarterly basis during the hedge
relationship to ensure that an economic relationship exists.
As Nokia only enters in hedge relationships where the critical
terms match, the assessment of effectiveness is done on a
qualitative basis with no significant ineffectiveness expected.
Presentation in the statement of cash flows
The cash flows of a hedge are classified as cash flows from
operating activities in cases where the underlying hedged items
relate to Nokia’s operating activities. When a derivative
contract is accounted for as a hedge of an identifiable position
relating to financing or investing activities, the cash flows of
the contract are classified in the same way as the cash flows of
the position being hedged. Cash flows of derivatives used in
hedging the foreign exchange risk of Nokia’s cash position are
presented in cash flows from investing activities.
Cash flow hedges: hedging of forecast foreign currency
denominated sales and purchases
Nokia applies cash flow hedge accounting primarily to foreign
exchange exposure that arises from highly probable forecast
operative business transactions. The risk management strategy
is to hedge material net exposures (identified standard net
sales exposure minus identified standard costs exposure) by
using foreign exchange forwards and foreign exchange options
in a layered hedging style that follows defined hedging level
ranges and hedge maturities in quarterly time buckets. The
hedged item must be highly probable and present an exposure to
variations in cash flows that could ultimately affect profit or loss.
For qualifying foreign exchange forwards and foreign exchange
options, the change in fair value that reflects the change in
spot exchange rates on a discounted basis is recognized in
hedging reserve through other comprehensive income (refer to
Note 5.1. Equity). The changes in the forward element of the
foreign exchange forwards and the time value of the options
that relate to hedged items are deferred in the cost of
hedging reserve through other comprehensive income (refer
to Note 5.1. Equity) and are subsequently accounted for in
the same way as the spot element or intrinsic value.
In each quarter, Nokia evaluates whether the forecast
sales and purchases are still expected to occur. If a portion
of the hedged cash flow is no longer expected to occur,
the hedge accounting criteria are no longer met and all
related deferred gains or losses are derecognized from
fair value and other reserves and recognized in other
operating income and expenses in the income statement.
If the hedged cash flow ceases to be highly probable, but is
still expected to occur, accumulated gains and losses remain
in fair value and other reserves until the hedged cash flow
affects profit or loss.
Nokia’s risk management objective is to hedge forecast cash
flows until the related revenue has been recognized. Each
hedge relationship is discontinued during the quarter when
the hedge matures, which is also the quarter that it had
been designated to hedge. At this point, the accumulated
gain or loss of cash flow hedges is reclassified to other
operating income and expenses in the income statement.
In cases where the forecast amount of revenue is not
recognized during a quarter, the full accumulated gain or
loss of cash flow hedges designated for said quarter is still
reclassified and the portion related to forecast revenue that
was not recognized is disclosed as hedge ineffectiveness.
As cash flow hedges primarily mature in the same quarter
as the hedged item, there is no significant ineffectiveness
resulting from the time value of money. Nokia will validate
the magnitude of the impact of discounting related to the
amount of gain or loss recognized in fair value and other
reserves on a quarterly basis.
Cash flow and fair value hedges: hedging of foreign
exchange risk of future interest cash flows
Nokia also applies cash flow hedging to future interest cash
flows in foreign currency related to issued bonds. These
future interest cash flows are hedged with cross-currency
swaps that have been bifurcated and designated partly as
fair value hedges (see Fair value hedges: hedging of interest
rate exposure below) to hedge both the foreign exchange
and interest rate benchmark risk component of the issued
bond, and partly as cash flow hedges to hedge the foreign
exchange risk related to the remaining portion of interest
cash flows on the issued bond. The accumulated gain or loss
for the part of these cross-currency swaps designated as
cash flow hedges is initially recorded in hedging reserve
through other comprehensive income and reclassified to
profit or loss at the time when the related interest cash
flows are settled.
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Fair value hedges: hedging of interest rate exposure
Nokia applies fair value hedge accounting to reduce
exposure to fair value fluctuations of interest-bearing
liabilities due to changes in interest rates and foreign
exchange rates. Nokia uses interest rate swaps and cross-
currency swaps aligned with the hedged items to hedge
interest rate risk and associated foreign exchange risk.
Nokia has entered into long-term borrowings mainly at fixed
rates and has swapped most of them into floating rates in
line with a defined target interest profile. Nokia aims to
mitigate the adverse impacts from interest rate fluctuations
by continuously managing net interest exposure resulting
from financial assets and liabilities by setting appropriate
risk management benchmarks and risk limits. The hedged
item is identified as a proportion of the outstanding loans
up to the notional amount of the swaps as appropriate to
achieve the risk management objective. Nokia enters into
interest rate swaps that have similar critical terms to the
hedged item, such as reference rate, reset dates, payment
dates, maturities and notional amount and hence Nokia
expects that there will be no significant ineffectiveness.
Nokia has not entered into interest rate swaps where it
would be paying fixed rates.
Nokia’s borrowings are carried at amortized cost. Changes
in the fair value of derivatives designated and qualifying as
fair value hedges, together with any changes in the fair value
of hedged liabilities attributable to the hedged risk, are
recorded in financial income and expenses in the income
statement. Nokia separates the foreign currency basis
spread from cross-currency swaps and excludes it from the
hedged risk as cost of hedging that is initially recognized
and subsequently measured at fair value and recorded in
the cost of hedging reserve through other comprehensive
income. If a hedge relationship no longer meets the criteria
for hedge accounting, hedge accounting ceases, the cost
of hedging recorded in the cost of hedging reserve is
immediately expensed and any fair value adjustments
made to the carrying amount of the hedged item while the
hedge was effective are recognized in financial income and
expenses in the income statement based on the effective
interest method.
Fair value hedges: hedging of foreign exchange exposure
In certain cases, related to long-term construction projects
within the Submarine Networks business which is presented
as discontinued operations, Nokia applied fair value hedge
accounting for foreign exchange risk with the objective to
reduce the exposure to fluctuations in the fair value of firm
commitments due to changes in foreign exchange rates. The
change in fair value that reflect the change in spot exchange
rates of the foreign exchange forwards designated and
qualifying as fair value hedges, together with any changes in
the fair value of the hedged firm commitments attributable
to the hedged risk, were recorded in financial income and
expenses in discontinued operations.
At the end of the hedge relationship, the accumulated changes
in the spot element of qualifying fair value hedges were
recorded as adjustments to net sales or cost of sales in
discontinued operations according to the hedge designation.
The changes in the forward element of the foreign exchange
forwards that relate to hedged items were deferred in the
cost of hedging reserve through other comprehensive income
and reclassified to other operating income and expenses in
discontinued operations at the end of the hedge relationship.
Hedges of net investments in foreign operations
Nokia applies hedge accounting for its foreign currency
hedging of selected net investments. The hedged item can
be an amount equal to or less than the carrying amount of
the net assets of the foreign operation in the statement of
financial position. The risk management strategy is to protect
the euro counter value of the portion of this exposure
expected to materialize as non-euro cash repatriation in the
foreseeable future.
For qualifying foreign exchange forwards, foreign exchange
options and option strategies, the change in fair value that
reflects the change in spot exchange rates is recognized in
translation differences in shareholders’ equity (refer to Note
5.1. Equity). The changes in the forward element of foreign
exchange forwards as well as the changes in the time value
of options (collectively known as the “cost of hedging”) is
recognized in the cost of hedging reserve through other
comprehensive income. The cost of hedging at the date of
designation of the foreign exchange forward or option contract
as a hedging instrument is amortized to financial income and
expenses in the income statement over the duration of the
contract. Hence, in each reporting period, the change in fair
value of the forward element of the foreign exchange forward
contract or the time value of the option contract is recorded
in the cost of hedging reserve through other comprehensive
income, while the amortization amount is reclassified from
the cost of hedging reserve to profit or loss.
The cumulative amount or proportionate share of changes
in the fair value of qualifying hedges deferred in translation
differences is recognized as gain or loss on disposal of all or
part of a foreign subsidiary.
Derivatives not designated in hedge accounting
relationships carried at fair value through profit and loss
For derivatives not designated under hedge accounting, but
hedging identifiable forecast exposures such as anticipated
foreign currency denominated sales and purchases, the
gains and losses are recognized in other operating income
and expenses in the income statement. The gains and losses
on all other derivatives not designated under hedge
accounting are recognized in financial income and expenses.
Embedded derivatives included in contracts are identified
and monitored by Nokia. For host contracts that are not
financial assets containing embedded derivatives that are
not closely related, the embedded derivatives are separated
and measured at fair value at each reporting date with
changes in fair value recognized in financial income and
expenses in the income statement. For host contracts that
are financial assets containing embedded derivatives, the
whole contract is measured at fair value at each reporting
date with changes in fair value recognized in financial
income and expenses in the income statement.
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Derivatives and firm commitments
2024
2023
Assets
Liabilities
Assets
Liabilities
EURm
Fair value(1)
Notional(2)
Fair value(1)
Notional(2)
Fair value(1)
Notional(2)
Fair value(1)
Notional(2)
Cash flow hedges
Foreign exchange forward contracts
7
381
(19)
733
26
1 206
(19)
1 039
Currency options bought
—
90
—
—
3
466
—
—
Currency options sold
—
—
—
—
—
—
—
23
Fuel hedges
—
—
—
—
—
—
(1)
50
Cash flow and fair value hedges(3)
Cross-currency swaps
15
241
(97)
722
—
—
(144)
905
Fair value hedges
Interest rate swaps
28
1 130
(10)
792
24
1 195
(28)
1 105
Foreign exchange forward contracts
—
—
—
—
14
627
(59)
1 337
Firm commitments
—
—
—
—
22
1 788
(9)
434
Hedges on net investment in foreign subsidiaries
Foreign exchange forward contracts
3
527
(8)
971
6
1 111
—
81
Derivatives not designated in hedge accounting relationships carried at fair value through profit and loss
Foreign exchange forward contracts
110
7 129
(165)
6 124
58
6 889
(35)
6 012
Currency options bought
15
770
—
—
—
10
—
—
Embedded derivatives(4)
19
996
—
—
3
620
—
—
Other derivatives
—
—
—
—
—
12
—
—
Total
197
11 264
(299)
9 342
156
13 924
(295)
10 986
(1)
Included in other current financial and firm commitment assets and other financial and firm commitment liabilities in the statement of financial position.
(2)
Includes the gross amount of all notional values for contracts that have not yet been settled or canceled. The amount of notional value outstanding is not necessarily a measure or indication of market risk as the exposure of certain contracts may be offset by that of
other contracts.
(3)
Cross-currency swaps have been designated partly as fair value hedges and partly as cash flow hedges.
(4)
Embedded derivatives are related to customer contracts.
To manage interest rate and foreign exchange risks related to Nokia’s interest-bearing liabilities, Nokia has designated the following cross-currency swaps as hedges under both fair value hedge
accounting and cash flow hedge accounting, and interest rate swaps as hedges under fair value hedge accounting at 31 December:
Notional (million in currency)
Fair value EURm
Entity
Instrument
Currency
Maturity
2024
2023
2024
2023
Nokia Corporation
Interest rate swaps
EUR
3/2024
—
378
—
2
Nokia Corporation
Interest rate swaps
EUR
5/2025
292
292
3
—
Nokia Corporation
Interest rate swaps
EUR
3/2026
630
630
(1)
(13)
Nokia Corporation
Cross-currency swaps
USD
6/2027
500
500
9
(28)
Nokia Corporation
Interest rate swaps
EUR
5/2028
500
500
(7)
(13)
Nokia Corporation
Interest rate swaps
EUR
8/2031
500
500
22
20
Nokia Corporation
Cross-currency swaps
USD
5/2039
500
500
(92)
(116)
Total
(66)
(148)
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5.4. Financial risk management
General risk management principles
Nokia has a systematic and structured approach to risk
management. Key risks and opportunities are primarily
identified against business targets either in business
operations or as an integral part of strategy and financial
planning. Risk management covers strategic, operational,
financial, compliance and reputational risks. Key risks and
opportunities are analyzed, managed and monitored as
part of business performance management. The principles
documented in the Nokia Enterprise Risk Management Policy,
which is approved by the Audit Committee of the Board,
require risk management and its elements to be integrated into
key processes. One of the core principles is that the business
or function head is also the risk owner, although all employees
are responsible for identifying, analyzing and managing risks,
as appropriate, given their roles and duties. Nokia’s overall risk
management concept is based on managing the key risks that
would prevent Nokia from meeting its objectives, rather than
focusing on eliminating risks. In addition to the principles
defined in the Nokia Enterprise Risk Management Policy,
other key policies and operating procedures reflect the
implementation of specific aspects of risk management,
including financial risk management.
Financial risks
The objective for treasury activities is to guarantee sufficient
funding at all times and to identify, evaluate and manage
financial risks. Treasury activities support this aim by mitigating
the adverse effects on the profitability of the underlying
business caused by fluctuations in the financial markets,
and by managing the capital structure by balancing the levels
of liquid assets and financial borrowings. Treasury activities
are governed by the Nokia Treasury Policy approved by the
President and CEO, which provides principles for overall
financial risk management and determines the allocation
of responsibilities for financial risk management activities.
Operating procedures approved by the Chief Financial Officer
(CFO) cover specific areas such as foreign exchange risk,
interest rate risk, credit risk and liquidity risk, as well as the use
of derivative financial instruments in managing these risks.
Nokia is risk averse in its treasury activities.
Financial risks are divided into market risk covering foreign
exchange risk and interest rate risk, financial credit risk, and
liquidity risk.
Market risk
Foreign exchange risk
Nokia operates globally and is exposed to transaction and
translation foreign exchange risks. The objective of foreign
exchange risk management is to mitigate adverse impacts from
foreign exchange fluctuations on Nokia’s profitability and cash
flows. Treasury applies a global portfolio approach to manage
foreign exchange risks within approved guidelines and limits.
Transaction risk arises from foreign currency denominated
assets and liabilities together with foreign currency
denominated future cash flows. Transaction exposures are
managed in the context of various functional currencies of
Group companies. Material transactional foreign exchange
exposures are hedged, unless hedging would be uneconomical
due to market liquidity and/or hedging cost. Exposures are
defined using transaction nominal values. Exposures are mainly
hedged with derivative financial instruments, such as foreign
exchange forward contracts and foreign exchange options
with most of the hedging instruments having a duration
of less than a year.
A layered hedging approach is typically used for hedging
of highly probable forecast foreign currency denominated
cash flows with quarterly hedged items defined based on set
hedge ratio ranges for each successive quarter. Hedged items
defined for successive quarters are hedged with foreign
exchange forward contracts and foreign exchange options with
a hedge ratio of 1:1. Hedging level ranges are adjusted on a
monthly basis including hedging instrument designation and
documentation as appropriate. In cases where hedges exceed
the hedge ratio range for any specific quarter, the hedge
portfolio for that specific quarter is adjusted accordingly.
In certain cases, mainly related to long-term construction
projects within Submarine Networks business which is
presented as a discontinued operation, Nokia applies fair value
hedge accounting for foreign exchange risk with the objective
to reduce the exposure to fluctuations in the fair value of the
related firm commitments due to changes in foreign exchange
rates. Exposures are mainly hedged with foreign exchange
forward contracts with most of the hedging instruments
matching the duration of the underlying projects. Nokia
continuously manages the portfolio of hedging instruments
to ensure appropriate alignment with the portfolio of hedged
items at a hedging ratio of 1:1.
As Nokia has entities where the functional currency is other
than the euro, the shareholders’ equity is exposed to
fluctuations in foreign exchange rates. Changes in shareholders’
equity caused by movements in foreign exchange rates are
shown as currency translation differences in the consolidated
financial statements. The risk management strategy is to
protect the euro counter value of the portion of this exposure
expected to materialize as foreign currency repatriation cash
flows in the foreseeable future. Exposures are mainly hedged
with derivative financial instruments, such as foreign exchange
forward contracts and foreign exchange options with most of
the hedging instruments having a duration of less than a year.
Hedged items are defined based on conservative expectations
of repatriation cash flows based on a range of considerations.
Net investment exposures are reviewed, hedged items
designated, and hedging levels adjusted at minimum on a
quarterly basis with a hedge ratio of 1:1. Additionally, hedging
levels are adjusted whenever there are significant events
impacting expected repatriation cash flows.
The foreign exchange risk arising from foreign currency
denominated interest-bearing liabilities is primarily hedged
using cross-currency swaps that are also used to manage
Nokia’s interest rate profile (refer to the interest rate risk
section below).
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Notional amounts in currencies that represent a significant portion of the currency mix in outstanding financial instruments and other hedged items at 31 December:
EURm
USD
CNY
INR
GBP
2024
Foreign exchange exposure designated as hedged item for cash flow hedging, net(1)
450
(220)
(175)
222
Foreign exchange exposure designated as hedged item for net investment hedging(3)
135
783
208
152
Foreign exchange exposure from interest-bearing liabilities(4)
(786)
—
—
—
Foreign exchange exposure from items on the statement of financial position, excluding interest-bearing liabilities, net
961
(822)
(718)
(100)
Other foreign exchange derivatives, carried at fair value through profit and loss, net(5)
735
813
200
83
2023
Foreign exchange exposure designated as hedged item for cash flow hedging, net(1)
606
(232)
(153)
36
Foreign exchange exposure designated as hedged item for fair value hedging for FX risk, net(2)
1 354
—
—
—
Foreign exchange exposure designated as hedged item for net investment hedging(3)
—
788
184
106
Foreign exchange exposure from interest-bearing liabilities(4)
(750)
—
—
—
Foreign exchange exposure from items on the statement of financial position, excluding interest-bearing liabilities, net
2 475
(804)
(346)
(52)
Other foreign exchange derivatives, carried at fair value through profit and loss, net(5)
(205)
720
(38)
108
(1)
Includes foreign exchange exposure from forecast cash flows related to sales and purchases. In some currencies, especially the US dollar, Nokia has substantial foreign exchange exposures in both estimated cash inflows and outflows. These underlying exposures have
been hedged.
(2)
Includes foreign exchange exposure from contractual firm commitments. These underlying exposures have been substantially hedged.
(3)
Includes net investment exposures in foreign operations. These underlying exposures have been hedged.
(4)
Includes interest-bearing liabilities that have been hedged with cross-currency swaps and foreign exchange forwards. Refer to Note 5.3. Derivative and firm commitment assets and liabilities.
(5)
Items on the statement of financial position are hedged by a portion of foreign exchange derivatives not designated in a hedge relationship and carried at fair value through profit and loss. Embedded derivatives are included in this line item.
Effects of hedge accounting on the financial position and performance
Nokia is using several types of hedge accounting programs to manage its foreign exchange and interest rate risk exposures; refer to Note 5.3. Derivative and firm commitment assets and liabilities.
The effect of these programs on Nokia’s financial position and performance at 31 December:
EURm
Cash flow hedges(1)
Net investment hedges(1)
Fair value hedges for FX risk(1)
Fair value and cash flow hedges(1)
2024
Carrying amount of hedging instruments
(12)
(5)
—
(88)
Notional amount of hedging instruments
(1 043)
(1 498)
—
2 885
Notional amount of hedged items
1 043
1 498
—
(2 885)
Change in intrinsic value of hedging instruments since 1 January
(3)
(39)
—
10
Change in value of hedged items used to determine hedge effectiveness
6
39
—
(13)
2023
Carrying amount of hedging instruments
2
5
(45)
(174)
Notional amount of hedging instruments
(968)
(1 166)
(1 354)
3 205
Notional amount of hedged items
968
1 166
1 354
(3 205)
Change in intrinsic value of hedging instruments since 1 January
22
132
40
89
Change in value of hedged items used to determine hedge effectiveness
(15)
(132)
(42)
(93)
(1)
No significant ineffectiveness has been recorded during the periods presented and economic relationships have been fully effective.
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The methodology for assessing foreign exchange risk
exposures: Value-at-Risk
Nokia uses the Value-at-Risk (VaR) methodology to assess
exposures to foreign exchange risks. The VaR-based
methodology provides estimates of potential fair value losses
in market risk-sensitive instruments as a result of adverse
changes in specified market factors, at a specified confidence
level over a defined holding period. Nokia calculates the foreign
exchange VaR using the Monte Carlo method, which simulates
random values for exchange rates in which Nokia has exposures
and takes the non-linear price function of certain derivative
instruments into account. The VaR is determined using
volatilities and correlations of rates and prices estimated from
a sample of historical market data, at a 95% confidence level,
using a one-month holding period. To put more weight on
recent market conditions, an exponentially weighted moving
average is performed on the data with an appropriate decay
factor. This model implies that, within a one-month period, the
potential loss will not exceed the VaR estimate in 95% of
possible outcomes.
In the remaining 5% of possible outcomes, the potential loss
will be at minimum equal to the VaR figure and, on average,
substantially higher. The VaR methodology relies on a number
of assumptions, which include the following: risks are measured
under average market conditions, changes in market risk
factors follow normal distributions, future movements in
market risk factors are in line with estimated parameters and
the assessed exposures do not change during the holding
period. Thus, it is possible that, for any given month, the
potential losses at a 95% confidence level are different and
could be substantially higher than the estimated VaR.
The VaR calculation includes foreign currency denominated
monetary financial instruments, such as current financial
investments, loans and trade receivables, cash, and loans
and trade payables; foreign exchange derivatives carried
at fair value through profit and loss that are not in a hedge
relationship and are mostly used to hedge the statement
of financial position foreign exchange exposure, as well as
embedded derivatives; and foreign exchange derivatives
designated as forecast cash flow hedges, fair value hedges
and net investment hedges as well as the exposures
designated, as hedged items for these hedge relationships.
The VaR risk measures for Nokia’s sensitivity to foreign exchange risks are presented in the Total VaR column and the simulated
impact to financial statements is presented in the profit, other comprehensive income (OCI) and cumulative translation
adjustment (CTA) columns in the table below.
2024
2023
Simulated impact on financial statements
Simulated impact on financial statements
EURm
Total VaR
Profit
OCI
CTA
Total VaR
Profit
OCI
CTA
31 December
36
40
23
—
72
67
18
—
Average for the year
19
15
21
—
32
25
23
—
Range for the year
8-36
9-40
11-25
0-0
19-72
12-67
9-40
0-0
The most significant foreign exchange hedging instruments under cash flow, net investment and fair value hedge accounting at
31 December:
Maturity breakdown of notional amounts (EURm)(1)
Currency
Fair value
(EURm)
Weighted
average
hedged rate
Total
Within 3
months
Between 3
and 12
months
Between 1
and 3 years
Beyond 3
years
2024
Cash flow hedge accounting
GBP
(5)
0.8423
(222)
(69)
(153)
—
—
USD
(11)
1.0670
(459)
(170)
(289)
—
—
Net investment hedge accounting
CNY
(6)
7.6474
(783)
(783)
—
—
—
INR
—
88.8518
(208)
(186)
(22)
—
—
2023
Cash flow hedge accounting
GBP
(1)
0.8640
(219)
(63)
(156)
—
—
USD
5
1.0881
(860)
(231)
(629)
—
—
USD
(2)
1.0832
257
—
119
131
7
Net investment hedge accounting
CNY
4
7.8152
(788)
(788)
—
—
—
Fair value hedge accounting for FX risk
USD
(45)
1.1196
(1 354)
(427)
(301)
(616)
(10)
(1)
Negative notional amounts indicate that hedges sell currency, and positive notional amounts indicate that hedges buy currency.
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Interest rate risk
Nokia is exposed to interest rate risk either through market
value fluctuations of items on the statement of financial
position (price risk) or through changes in interest income or
expenses (refinancing or reinvestment risk). Interest rate risk
mainly arises through interest-bearing liabilities and assets.
Estimated future changes in cash flows and the structure of
the statement of financial position also expose Nokia to
interest rate risk.
The objective of interest rate risk management is to mitigate
adverse impacts arising from interest rate fluctuations on the
income statement, cash flow and financial assets and liabilities
while taking into consideration Nokia’s target capital structure
and the resulting net interest rate exposure. Nokia has entered
into long-term borrowings mainly at fixed rates and swapped
most of them into floating rates, in line with a defined target
interest profile. Nokia has not entered into interest rate swaps
where it would be paying fixed rates. Nokia aims to mitigate
the adverse impacts from interest rate fluctuations by
continuously managing net interest rate exposure arising
from financial assets and liabilities, by setting appropriate
risk management benchmarks and risk limits.
Treasury monitors and manages interest rate exposure
centrally. Nokia uses selective sensitivity analyses to assess and
measure interest rate exposure arising from interest-bearing
assets, interest-bearing liabilities and related derivatives.
Sensitivity analysis determines an estimate of potential
fair value changes in market risk-sensitive instruments by
varying interest rates in currencies in which Nokia has material
amounts of financial assets and liabilities while keeping all
other variables constant.
Sensitivities to credit spreads are not reflected in the
sensitivity analysis.
Interest rate profile of items under interest rate risk management at 31 December:
2024
2023
EURm
Fixed rate
Floating rate(1)
Fixed rate
Floating rate(1)
Non-current interest-bearing financial investments
457
—
715
—
Current interest-bearing financial investments
133
1 528
510
1 055
Cash and cash equivalents
54
6 569
55
6 179
Interest-bearing liabilities
(3 150)
(737)
(3 483)
(708)
Financial assets and liabilities before derivatives
(2 506)
7 360
(2 203)
6 526
Interest rate derivatives
2 820
(2 820)
3 057
(3 057)
Financial assets and liabilities after derivatives
314
4 540
854
3 469
(1)
All cash equivalents and derivative transaction-related collaterals with initial maturity of three months or less are considered floating rate for the purposes of interest rate risk
management.
Nokia’s sensitivity to interest rate exposure in the investment and debt portfolios is presented in the fair value column in the table
below with simulated impact to the financial statements presented in the profit and other comprehensive income (OCI) columns.
2024
2023
Impact on
Impact on
Impact on
Impact on
Impact on
Impact on
EURm
fair value
profit
OCI
fair value
profit
OCI
Interest rates - increase by 100 basis points
3
4
—
(6)
3
1
Interest rates - decrease by 100 basis points
(2)
(5)
—
8
(4)
(1)
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Credit risk
Credit risk refers to the risk that a counterparty will default on
its contractual obligations resulting in financial loss to Nokia.
Credit risk arises from credit exposures to customers, including
outstanding receivables, financial guarantees and committed
transactions, as well as financial institutions, including bank
and cash, fixed income and money market investments,
and derivative financial instruments. Credit risk is managed
separately for business-related and financial credit exposures.
Financial instruments contain an element of risk resulting from
changes in the market price due to counterparties becoming
less creditworthy or risk of loss due to counterparties being
unable to meet their obligations. Financial credit risk is
measured and monitored centrally by Treasury. Financial
credit risk is managed actively by limiting counterparties to
a sufficient number of major banks and financial institutions,
and by monitoring the creditworthiness and the size of
exposures continuously. Additionally, Nokia enters into netting
arrangements with all major counterparties, which give the
right to offset in the event that the counterparty would not
be able to fulfill its obligations. Nokia enters into collateral
agreements with most counterparties, which require
counterparties to post collateral against derivative receivables.
Investment decisions are based on strict creditworthiness and
maturity criteria as defined in the Treasury-related policies and
procedures. As a result of this investment policy approach and
active management of outstanding investment exposures,
Nokia has not been subject to any material credit losses in its
financial investments in the years presented. Due to the high
credit quality of Nokia’s financial investments, the expected
credit loss for these investments is deemed insignificant based
on 12 months’ expected credit losses at 31 December 2024.
For information on expected credit losses for customer-related
balances, refer to Note 4.5. Trade receivables and other
customer-related balances.
Nokia has restricted bank deposits primarily related to
employee benefits of EUR 114 million (EUR 119 million in 2023)
that are presented in other non-current financial assets.
Nokia has assessed the counterparty credit risk for these
financial assets and concluded that expected credit losses
are not significant.
Outstanding non-current and current interest-bearing financial investments, cash equivalents and cash classified by credit
rating grades ranked in line with S&P Global Ratings categories at 31 December:
Cash equivalents and interest-bearing financial investments
EURm
Rating(1)
Cash
Due within 3
months
Due between 3
and 12 months
Due between 1
and 3 years
Due between 3
and 5 years
Due beyond 5
years
Total(2)(3)
2024
AAA
—
1 496
—
8
—
—
1 504
AA+ – AA-
720
727
12
27
6
—
1 492
A+ – A-
2 004
2 346
380
241
157
102
5 230
BBB+ – BBB-
48
244
15
63
26
—
396
Other
117
2
—
—
—
—
119
Total
2 889
4 815
407
339
189
102
8 741
2023
AAA
—
1 443
25
—
—
—
1 468
AA+ – AA-
1 042
149
74
—
8
—
1 273
A+ – A-
2 183
1 340
301
255
245
23
4 347
BBB+ – BBB-
456
242
134
230
227
—
1 289
Other
133
4
—
—
—
—
137
Total
3 814
3 178
534
485
480
23
8 514
(1)
Bank Parent Company ratings are used here for bank groups. Actual bank subsidiary ratings may differ from the Bank Parent Company rating.
(2)
Non-current and current interest-bearing financial investments and cash equivalents include bank deposits, structured deposits, investments in money market funds and
investments in fixed income instruments.
(3)
Instruments that include a call feature have been presented at their final maturities. Instruments that are contractually due beyond three months include EUR 306 million
(EUR 332 million in 2023) of instruments that have a call period of less than three months.
The following table sets out financial assets and liabilities subject to offsetting under enforceable master netting agreements
and similar arrangements at 31 December. To reconcile the items presented to the statement of financial position, items that
are not subject to offsetting would need to be included, refer to Note 5.3. Derivative and firm commitment assets and liabilities.
Related amounts not set off in the statement of financial position
EURm
Net amounts of financial assets/
(liabilities) presented in the
statement of financial position
Financial instruments
assets/(liabilities)
Cash collateral
(received)/pledged
Net amount
2024
Derivative assets
178
(143)
(33)
2
Derivative liabilities
(296)
143
147
(6)
Total
(118)
—
114
(4)
2023
Derivative assets
131
(115)
(15)
1
Derivative liabilities
(285)
115
164
(6)
Total
(154)
—
149
(5)
The financial instruments subject to enforceable master netting agreements and similar arrangements are not offset in the
statement of financial position as there is no intention to settle net or realize the asset and settle the liability simultaneously.
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Liquidity risk
Liquidity risk is defined as financial distress or extraordinarily
high financing costs arising from a shortage of liquid funds in
a situation where outstanding debt needs to be refinanced
or where business conditions unexpectedly deteriorate and
require financing. Transactional liquidity risk is defined as
the risk of executing a financial transaction below fair market
value or not being able to execute the transaction at all
within a specific period of time. The objective of liquidity risk
management is to maintain sufficient liquidity, and to ensure
that it is readily available without endangering its value in order
to avoid uncertainty related to financial distress at all times.
Nokia aims to secure sufficient liquidity at all times through
efficient cash management and by investing primarily in highly
liquid money market investments. Depending on its overall
liquidity position, Nokia may pre-finance or refinance upcoming
debt maturities before contractual maturity dates. The
transactional liquidity risk is minimized by entering into
transactions where proper two-way quotes can be obtained
from the market. Nokia aims to ensure flexibility in funding
by maintaining committed and uncommitted credit lines.
Nokia's trade payables include balances payable to suppliers
under reverse factoring arrangements with financial
institutions. These balances are classified as trade payables
since the payments are made to the banks on very similar
terms as to suppliers. Possible extensions to payment terms
beyond the due dates agreed with suppliers are insignificant
and there are no special guarantees securing the payments to
be made. These arrangements do not result in a significant
liquidity risk given the limited amount of liabilities subject to
supplier finance arrangements and Nokia's access to other
sources of finance.
Liabilities under supplier finance arrangements at 31 December:
Carrying amount of liabilities (EURm)
2024
Presented within trade and other payables
564
Of which suppliers have received payment
250
Range of payment due dates after invoice date (days)
2024
Liabilities that are part of the arrangements
60-90
Comparable trade payables that are not part of an
arrangement
30-120
Nokia’s significant credit facilities and funding programs at 31 December:
Utilized (million)
Committed/uncommitted
Financing arrangement
Currency
Nominal (million)
2024
2023
Committed
Revolving Credit Facility(1)
EUR
1 412
—
—
Committed
NIB Loan Facility(2)
EUR
250
100
—
Uncommitted
Finnish Commercial Paper Programme
EUR
750
—
—
Uncommitted
Euro-Commercial Paper Programme
EUR
1 500
—
—
Uncommitted
Euro Medium Term Note Programme(3)
EUR
5 000
1 922
2 300
Total
2 022
2 300
(1)
The facility has its maturity in June 2026.
(2)
The availability period of the remaining loan facility of EUR 150 million ends in April 2025.
(3)
All euro-denominated bonds have been issued under the Euro Medium Term Note Programme.
Certain changes in financial liabilities do not have a direct impact on Nokia’s liquidity position. A disaggregation of cash and non-
cash changes in lease liabilities, interest-bearing liabilities and associated derivatives arising from financing activities has been
presented in the table below.
EURm
Long-term
interest-bearing
liabilities
Short-term
interest-bearing
liabilities
Derivatives held
to hedge long-
term
borrowings(1)
Lease liabilities(2)
Total
1 January 2024
3 637
554
174
997
5 362
Cash flows
(361)
(6)
—
(225)
(592)
Non-cash changes:
Changes in foreign exchange rates
64
2
(49)
15
32
Changes in fair value
(5)
—
(37)
—
(42)
Reclassification between long-term and short-term
(417)
417
—
—
—
Liabilities associated with assets held for sale
—
—
—
(30)
(30)
Additions(3)
—
—
—
117
117
Other
—
2
—
(11)
(9)
31 December 2024
2 918
969
88
863
4 838
1 January 2023
4 249
228
246
1 042
5 765
Cash flows
(283)
(40)
(19)
(239)
(581)
Non-cash changes:
Changes in foreign exchange rates
(34)
(3)
25
(12)
(24)
Changes in fair value
83
—
(79)
—
4
Reclassification between long-term and short-term
(374)
374
—
—
—
Additions(3)
—
—
—
206
206
Other
(4)
(5)
1
—
(8)
31 December 2023
3 637
554
174
997
5 362
(1)
Includes derivatives designated in fair value and cash flow hedge accounting relationships as well as derivatives not designated in hedge accounting relationship but hedging
identifiable long-term borrowing exposure.
(2)
Includes non-current and current lease liabilities. In 2024. cash flows exclude Submarine Networks’ cash flows after it was classified as held for sale and a discontinued
operation.
(3)
Includes new lease contracts as well as modifications and remeasurements of existing lease contracts.
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The following table presents an undiscounted, contractual cash flow analysis for lease liabilities, financial liabilities and financial assets presented on the statement of financial position as well as
loan commitments given and obtained. The line-by-line analysis does not directly reconcile with the statement of financial position.
2024
2023
Due
Due
EURm
within 3
months
between 3 and
12 months
between 1
and 3 years
between 3
and 5 years
beyond 5
years
Total
within 3
months
between 3 and
12 months
between 1
and 3 years
between 3
and 5 years
beyond 5
years
Total
Non-current financial assets
Non-current interest-bearing financial investments
3
5
359
129
—
496
—
—
394
385
—
779
Other non-current financial assets(1)
—
—
57
8
48
113
—
—
60
8
46
114
Current financial assets
Other current financial assets excluding derivatives(1)
318
99
—
—
—
417
216
31
—
—
—
247
Current interest-bearing financial investments(2)
1 390
279
—
—
—
1 669
998
595
—
—
—
1 593
Cash and cash equivalents(2)
6 351
114
80
83
25
6 653
6 017
52
30
138
26
6 263
Cash flows related to derivative financial assets net settled:
Derivative contracts – receipts
(6)
3
(1)
(1)
4
(1)
(7)
(2)
(11)
(12)
(10)
(42)
Cash flows related to derivative financial assets gross settled:
Derivative contracts – receipts
5 492
2 471
1 081
114
—
9 158
8 407
1 582
358
6
—
10 353
Derivative contracts – payments
(5 428)
(2 416)
(1 017)
(106)
—
(8 967)
(8 349)
(1 560)
(353)
(6)
—
(10 268)
Trade receivables
4 529
933
39
—
—
5 501
3 834
1 316
184
—
—
5 334
Non-current financial and lease liabilities
Long-term interest-bearing liabilities
(21)
(103)
(1 345)
(926)
(1 441)
(3 836)
(33)
(115)
(1 766)
(1 200)
(1 528)
(4 642)
Long-term lease liabilities
—
—
(294)
(172)
(266)
(732)
—
—
(353)
(199)
(304)
(856)
Other non-current financial liabilities
(12)
—
(23)
(10)
—
(45)
—
—
(11)
(11)
(11)
(33)
Current financial and lease liabilities
Short-term interest-bearing liabilities
(603)
(386)
—
—
—
(989)
(473)
(98)
—
—
—
(571)
Short-term lease liabilities
(64)
(175)
—
—
—
(239)
(44)
(179)
—
—
—
(223)
Other financial liabilities excluding derivatives(3)
(490)
(2)
—
—
—
(492)
(458)
(24)
—
—
—
(482)
Cash flows related to derivative financial liabilities net settled:
Derivative contracts – payments
(2)
(14)
(10)
3
—
(23)
(4)
(29)
(41)
(12)
—
(86)
Cash flows related to derivative financial liabilities gross settled:
Derivative contracts – receipts
5 517
1 400
965
160
784
8 826
6 475
1 322
735
541
767
9 840
Derivative contracts – payments
(5 635)
(1 458)
(1 013)
(174)
(777)
(9 057)
(6 553)
(1 353)
(806)
(551)
(858)
(10 121)
Discounts without performance obligations
(222)
(149)
(6)
(3)
—
(380)
(151)
(212)
(40)
(1)
—
(404)
Trade payables
(3 049)
(126)
(25)
(12)
(1)
(3 213)
(3 154)
(204)
(64)
—
(1)
(3 423)
Commitments given and obtained
Loan commitments given undrawn(4)
(5)
(6)
—
—
—
(11)
(1)
(4)
—
—
—
(5)
Loan commitments obtained undrawn(5)
(1)
148
1 410
—
—
1 557
(1)
86
1 408
—
—
1 493
Venture fund commitments undrawn(6)
306
—
—
—
—
306
381
—
—
—
—
381
(1)
Other non-current financial assets and other current financial assets excluding derivatives mainly include financial receivables from customers and suppliers.
(2)
Instruments that include a call feature have been presented at their final maturities. Instruments that are contractually due beyond three months include EUR 306 million (EUR 332 million in 2023) of instruments that have a call period of less than three months.
(3)
Other financial liabilities excluding derivatives include a conditional obligation to China Huaxin presented in the earliest period as the exercise period is open.
(4)
Loan commitments given undrawn have been included in the earliest period in which they could be drawn or called.
(5)
Loan commitments obtained undrawn have been included based on the period in which they expire. These amounts include related commitment fees.
(6)
The timing of draw downs for these commitments are dependent on investment decisions of various venture funds and these are typically spread over a time period of several years. For further information on venture fund commitments, refer to Note 6.1.
Commitments, contingencies and legal proceedings.
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Section 6
Other
information
This section contains information on
Nokia’s off-balance sheet commitments
and contingencies, Group structure and related
party transactions, as well as post reporting
date events.
6.1. Commitments, contingencies and legal
proceedings
Contractual obligations
EURm
Within 1 year
1-5 years
More than 5
years
2024
Purchase obligations
2 538
697
3
Lease commitments(1)
9
86
573
2023
Purchase obligations
3 630
767
14
Lease commitments(1)
—
54
570
(1)
Relates to lease contracts that had not yet commenced as at the reporting date.
At 31 December 2024, Nokia has potential undiscounted future
lease payments of EUR 812 million (EUR 838 million in 2023)
relating to extension options not expected to be exercised and
EUR 58 million (EUR 33 million in 2023) relating to termination
options expected to be exercised that are not included in the
lease liability.
Guarantees and financing commitments
The contingent liabilities in the table below represent the
maximum principal amount of guarantees and financing
commitments, and do not reflect management’s expected
outcomes.
EURm
2024
2023
Guarantees on behalf of Group companies
Guarantees issued by financial institutions
Commercial guarantees(1)
964
1 477
Non-commercial guarantees
498
615
Corporate guarantees(2)
Commercial guarantees(1)
263
325
Non-commercial guarantees
33
35
Financing commitments
Customer finance commitments(3)
11
5
Venture fund commitments(4)
306
381
(1)
Commercial guarantees are guarantees that are issued in the normal course of
business to Nokia’s customers for the performance of Nokia’s obligations under
supply agreements; these include tender bonds, performance bonds and warranty
bonds.
(2)
Corporate guarantees are guarantees with a primary obligation that are issued to
Nokia’s customers and other third parties.
(3)
Customer finance commitments are available under customer loan facilities.
Availability of the facility depends on the borrower’s continuing compliance with the
agreed financial and operational covenants, and other administrative terms of the
facility. The loan facilities are primarily available to fund purchases of network
infrastructure equipment and services. Refer to Note 4.5. Trade receivables and
other customer-related balances.
(4)
As a limited partner in NGP Capital and certain other funds making technology-
related investments, Nokia is committed to capital contributions and entitled to
cash distributions according to the respective partnership agreements and
underlying fund activities.
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Legal matters
Accounting policies
Nokia discloses ongoing legal matters that relate to possible obligations whose existence
will be confirmed by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of Nokia. These matters are assessed continually to
determine whether an outflow of resources embodying economic benefits has become
probable so as to recognize a provision.
Nokia is and will likely continue to be subject to various legal proceedings that arise from time
to time, including proceedings related to intellectual property, antitrust, commercial disputes,
product liability, environmental issues, tax, health and safety, employment and wrongful
discharge, sales and marketing practices, international trade, securities, privacy matters and
compliance. While management does not expect any of the legal proceedings it is currently
aware of to have a material adverse effect on Nokia’s financial position, litigation is inherently
unpredictable, and Nokia may in the future receive judgments or enter into settlements that
could have a material adverse effect on its results or cash flows.
Litigation and proceedings
Mass labor litigation in Brazil
Nokia is defending against a number of labor claims in various Brazilian labor courts. Plaintiffs are
former employees whose contracts were terminated after Nokia exited from certain managed
services contracts. The claims mainly relate to payments made under, or in connection with,
the terminated labor contracts. Nokia has closed the majority of the court cases through
settlement or judgment.
Asbestos litigation in the United States
Nokia is defending approximately 300 asbestos-related matters, at various stages of litigation.
The claims are based on premises liability, products liability, and contractor liability. The claims
also involve plaintiffs allegedly diagnosed with various diseases, including but not limited to
asbestosis, lung cancer, and mesothelioma.
Intellectual property rights litigation
Amazon
In 2023, Nokia commenced patent infringement proceedings against Amazon in several
countries. The patents in suit cover video-related technologies implemented in Amazon’s
services and devices. Amazon filed patent infringement proceedings in relation to its patents
against Nokia in the US and counterclaims to Nokia’s actions, including a UK rate setting action.
Amazon’s appeals against the preliminary injunction awarded to Nokia in a regional court in Brazil
were denied. In September 2024, a regional court in Germany ruled that Amazon was infringing
one of Nokia’s patents and issued an injunction.
Litigations concluded during the year
During 2024, Nokia has concluded separate multi-year patent license agreements with OPPO,
vivo, Verifone and HP, thereby resolving all pending patent litigations between the parties in all
jurisdictions. In addition, in 2024, Continental withdrew the breach of contract and FRAND (fair,
reasonable and non-discriminatory terms) -related claims it had brought against Nokia, thus
ending the on-going dispute between the parties.
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6.2. Group companies
The Group’s subsidiaries at 31 December 2024
Finland
Comptel Oy
—
100.0
Nokia Innovations Oy
100.0
100.0
Nokia Investments Oy
100.0
100.0
Nokia Solutions and Networks Asset Management Oy
—
100.0
Nokia Solutions and Networks Branch Operations Oy
—
100.0
Nokia Solutions and Networks Oy
100.0
100.0
Nokia Technologies Oy
100.0
100.0
Nokia Teknologia Oy
100.0
100.0
Afghanistan
Nokia Siemens Networks Afghanistan LLC
—
100.0
Algeria
Nokia Algerie Sarl
—
100.0
Angola
Alcatel-Lucent Angola, Limitada
—
100.0
Argentina
Nokia Solutions and Networks Argentina S.A.
—
100.0
Armenia
Nokia Solutions and Networks CJSC
—
100.0
Australia
Nokia Services Pty Limited
—
100.0
Nokia Solutions and Networks Australia Pty Ltd
—
100.0
Radio Frequency Systems Pty Limited
—
50.0
Austria
IRIS Telecommunication Austria GmbH
—
100.0
Nokia Solutions and Networks Holding Österreich GmbH
—
100.0
Nokia Solutions and Networks Österreich GmbH
—
100.0
Azerbaijan
Nokia Solutions and Networks Baku LLC
—
100.0
Bangladesh
Nokia Solutions and Networks Bangladesh Limited
—
100.0
Belgium
Nokia Bell NV
—
100.0
Bolivia
Nokia Solutions and Networks Bolivia S.A.
—
100.0
Bosnia and
Herzegovina
Nokia Solutions and Networks d.o.o. Banja Luka
—
100.0
Nokia Solutions and Networks d.o.o., Sarajevo
—
100.0
Brazil
Nokia Solutions and Networks do Brasil Telecomunicações
Ltda.
—
100.0
RFS Brasil Telecomunicações Ltda.
—
50.0
Bulgaria
Nokia Solutions and Networks EOOD
—
100.0
Cameroon
Societe de Telecommunication Camerounaise - Sotelcam
—
99.6
Canada
Nokia Canada Inc.
—
100.0
Chile
Nokia Solutions and Networks Chile Ltda.
—
100.0
Country of incorporation
Company name
Parent
holding
%
Group
ownership
interest %
China
Alcatel-Lucent Shanghai Bell Information Products Co., Ltd.
—
50.0
Hunan Huanuo Technology Co., Ltd.
—
50.0
Lucent Technologies Investment Co., Ltd.
—
100.0
Lucent Technologies Qingdao Telecommunications Systems
Ltd.
—
51.0
Nokia (Shanghai) Enterprise Management Co., Ltd.
—
100.0
Nokia Networks (Chengdu) Co., Ltd.
—
50.0
Nokia Shanghai Bell Co., Ltd.(1)
—
50.0
Nokia Shanghai Bell Software Co., Ltd.
—
50.0
Nokia Solutions and Networks (Suzhou) Co., Ltd.
—
100.0
Nokia Solutions and Networks (Suzhou) Supply Chain Service
Co., Ltd.
—
100.0
Nokia Solutions and Networks Investment (China) Co., Ltd.
—
100.0
Nokia Solutions and Networks System Technology (Beijing)
Co., Ltd.
—
50.0
RFS Radio Frequency Systems (Shanghai) Co., Ltd.
—
50.0
Colombia
Nokia Solutions and Networks Colombia Ltda.
—
100.0
Costa Rica
Alcatel Centroamerica S.A.
—
100.0
Nokia Costa Rica S.A.
—
100.0
Croatia
Nokia Solutions and Networks d.o.o.
—
100.0
Czech Republic
Nokia Solutions and Networks Czech Republic, s.r.o.
—
100.0
Denmark
Nokia Denmark A/S
—
100.0
Dominican Republic
Nokia Dominican Republic, S.A.S.
—
100.0
Ecuador
Nokia Solutions and Networks Ecuador S.A.
—
100.0
Egypt
Nokia Egypt S.A.E.
—
100.0
El Salvador
Nokia El Salvador, S.A. de C.V.
—
100.0
Estonia
Nokia Solutions and Networks OÜ
—
100.0
France
Alcatel Lucent
—
100.0
Camilec
—
100.0
Evolium
—
100.0
Nokia Networks France
—
100.0
Nokia Participations
—
100.0
Nokia Participations Chine
—
100.0
Country of incorporation
Company name
Parent
holding
%
Group
ownership
interest %
Business
overview
Corporate
governance
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review
Financial
statements
Other
information
264
Notes to the consolidated financial statements continued
Nokia in 2024
Radio Frequency Systems France
—
50.0
Germany
Alcatel SEL Unterstützungs GmbH
—
100.0
IRIS Telecommunication GmbH
—
100.0
Nokia Asset Verwaltungsgesellschaft mbH
—
100.0
Nokia Display Technics GmbH i.L.
—
100.0
Nokia Electronics Bochum GmbH i.L.
—
100.0
Nokia Kunststofftechnik GmbH i.L.
—
100.0
Nokia Solutions and Networks GmbH & Co. KG
—
100.0
Nokia Solutions and Networks International Holding GmbH
—
100.0
Nokia Solutions and Networks Management GmbH
—
100.0
Nokia Technology GmbH
—
100.0
Nokia Unterstützungsgesellschaft mbH
—
100.0
RFS Holding GmbH
—
50.0
Greece
Nokia Solutions and Networks Hellas Single Member S.A.
—
100.0
Guatemala
Nokia Operations de Guatemala, S.A.
—
100.0
Hong Kong
Nokia Hong Kong Limited
—
100.0
Nokia Shanghai Bell (Hong Kong) Limited
—
50.0
Hungary
Nokia Solutions and Networks Kft.
—
100.0
Nokia Solutions and Networks TraffiCOM Kft.
—
99.0
India
Comptel Communications India Private Limited
—
100.0
Nokia India Private Limited
100.0
100.0
Nokia Solutions and Networks India Private Limited
—
100.0
Noktel Telequipments Manufacturers India Private Limited
—
100.0
RFS India Telecom Private Limited
—
50.0
Indonesia
PT Nokia Solutions and Networks Indonesia
—
100.0
Iran
Pishahang Communications Networks Development Company
(Private Joint Stock)
—
90.0
Ireland
Nokatus Insurance Company Designated Activity Company
(DAC)
100.0
100.0
Nokia Ireland Limited
—
100.0
Israel
Nokia Solutions and Networks Israel Ltd.
—
100.0
Italy
Nokia Solutions and Networks Italia S.p.A.
—
100.0
Nokia Solutions and Networks S.p.A.
—
100.0
Jamaica
Nokia Jamaica Limited
—
100.0
Japan
Nokia Innovations Japan G.K.
—
100.0
Nokia Solutions and Networks Japan G.K.
—
100.0
Kazakhstan
"Nokia Solutions and Networks Kazakhstan" LLP
—
100.0
Kuwait
Nokia Solutions and Networks Kuwait W.L.L.
—
49.0
Country of incorporation
Company name
Parent
holding
%
Group
ownership
interest %
Lao Peoples
Democratic Republic
Nokia Shanghai Bell Lao Sole Co. Ltd.
—
50.0
Latvia
Nokia Solutions and Networks SIA
—
100.0
Lithuania
UAB Nokia Solutions and Networks
—
100.0
Malaysia
Comptel Communications Sdn Bhd
—
100.0
Nokia Services and Networks Malaysia Sdn. Bhd.
—
100.0
Mexico
Nokia Operations de México S.A. de C.V.
—
100.0
Radio Frequency Systems de Mexico S.A. de C.V.
—
50.0
Moldova
"Nokia Solutions and Networks" S.R.L.
—
100.0
Morocco
Nokia Solutions and Networks Morocco SARL
—
100.0
Myanmar
Nokia Solutions and Networks Myanmar Limited
—
100.0
Netherlands
Alcatel-Lucent RT International B.V.
—
50.0
Alcatel-Lucent Services International B.V.
—
100.0
Nokia Solutions and Networks B.V.
—
100.0
New Zealand
Nokia New Zealand Limited
—
100.0
Nicaragua
Lucent Technologies Nicaragua, S.A.
—
100.0
Nigeria
Alcatel-Lucent Nigeria Limited
—
100.0
Nokia Solutions and Networks Nigeria Ltd.
—
100.0
Norway
Nokia Solutions and Networks Norge AS
—
100.0
Pakistan
Alcatel-Lucent Pakistan Limited
—
90.0
Nokia Solutions and Networks Pakistan (Private) Limited
—
100.0
Paraguay
Nokia Paraguay S.A.
—
100.0
Peru
Nokia Solutions and Networks Peru S.A.
—
100.0
Philippines
Lucent Technologies Philippines Inc.
—
100.0
Nokia Shanghai Bell Philippines, Inc.
—
50.0
Nokia Solutions and Networks Philippines, Inc.
—
100.0
Poland
IRIS Telecommunication Poland sp. z o.o.
—
100.0
Nokia Solutions and Networks sp. z o.o.
—
100.0
Portugal
Alcatel-Lucent Portugal, S.A.
—
100.0
Nokia Solutions and Networks Portugal S.A.
—
100.0
Puerto Rico
Nokia Puerto Rico Inc.
—
100.0
Romania
Nokia Networks S.R.L.
—
99.2
Russia
AO "Nokia Solutions and Networks"
—
100.0
OOO "Nokia Solutions and Networks"
—
100.0
Saudi Arabia
Alcatel-Lucent Saudi Arabia Co., Ltd.
—
100.0
Nokia Arabia Limited
—
100.0
Nokia Regional Headquarters Company
—
100.0
Country of incorporation
Company name
Parent
holding
%
Group
ownership
interest %
Business
overview
Corporate
governance
Board
review
Financial
statements
Other
information
265
Notes to the consolidated financial statements continued
Nokia in 2024
Senegal
Nokia West and Central Africa SA
—
100.0
Serbia
Nokia Solutions and Networks Serbia d.o.o. Beograd
—
100.0
Singapore
Nokia Solutions and Networks Singapore Pte. Ltd.
—
100.0
Slovakia
Nokia Slovakia, A.S.
—
100.0
Slovenia
Nokia Solutions and Networks, telekomunikacijske resitve,
d.o.o.
—
100.0
South Africa
Nokia Solutions and Networks South Africa (Pty) Ltd
—
100.0
Nokia South Africa (Pty) Ltd
—
69.9
South Korea
Nokia Solutions and Networks Korea Ltd.
—
100.0
Spain
Nokia Spain, S.A.
—
100.0
Nokia Transformation, Engineering & Consulting Services
Spain S.L.U.
—
100.0
Sri Lanka
Nokia Solutions and Networks Lanka (Private) Limited
—
100.0
Sweden
Nokia Solutions and Networks AB
—
100.0
Switzerland
Alcatel-Lucent Trade International AG
—
100.0
Nokia Solutions and Networks Schweiz AG
—
100.0
Taiwan
Nokia Solutions and Networks Taiwan Co., Ltd.
—
100.0
Taiwan International Standard Electronics Limited
—
60.0
Tanzania
Nokia Solutions and Networks Tanzania Limited
—
100.0
Thailand
Nokia (Thailand) Co., Ltd.
—
100.0
Tunisia
Nokia Solutions and Networks CCC
—
100.0
Nokia Solutions and Networks Tunisia SA
—
100.0
Turkey
Alcatel Lucent Teletas Telekomunikasyon A.S.
—
65.0
IRIS Telekomünikasyon Mühendislik Hizmetleri A.S.
—
100.0
Nokia Solutions Networks Iletisim A.S.
—
100.0
Ukraine
LLC "Nokia Solutions and Networks Ukraine"
—
100.0
United Arab Emirates
Alcatel Lucent Middle East and North Africa DMCC
—
100.0
Nokia Networks LLC
—
100.0
Nokia Solutions and Networks AE FZ-LLC
—
100.0
Nokia Solutions and Networks LLC - OPC
—
100.0
United Kingdom
Alcatel IP Networks Limited
—
100.0
Alcatel-Lucent Centro Caribbean Holding Limited
—
100.0
Nokia Software UK Limited
—
100.0
IRIS Service Delivery UK Ltd
—
100.0
Nokia UK Limited
—
100.0
STC
—
100.0
United States
Alcatel-Lucent International Holdings Inc.
—
100.0
Bell Laboratories Inc.
—
100.0
Country of incorporation
Company name
Parent
holding
%
Group
ownership
interest %
Fenix Group, Inc.
—
100.0
MRAC, Inc.
—
100.0
Nassau Metals Corporation
—
100.0
Nokia Apps Distribution LLC
—
100.0
Nokia Federal Solutions LLC
—
100.0
Nokia Innovations US LLC
—
100.0
Nokia Investment Management Corporation
—
100.0
Nokia of America Corporation
—
100.0
Nokia US Holdings Inc.
—
100.0
SAC AE Design Group, Inc.
—
100.0
SAC Wireless of CA, Inc.
—
100.0
SAC Wireless, LLC
—
100.0
Western Electric Company Incorporated
—
100.0
Uruguay
Nokia Uruguay S.A.
—
100.0
Uzbekistan
Nokia Solutions and Networks Tashkent LLC
—
100.0
Venezuela
Alcatel de Venezuela C.A.
—
100.0
Nokia Solutions and Networks Venezuela C.A.
—
100.0
Vietnam
Alcatel-Lucent Vietnam Limited
—
100.0
Nokia Solutions and Networks Technical Services Vietnam
Company Limited
—
100.0
Country of incorporation
Company name
Parent
holding
%
Group
ownership
interest %
(1)
Nokia Group owns 50% plus 1 share of Nokia Shanghai Bell Co., Ltd. with China Huaxin, an entity controlled by the Chinese
government, holding the remaining ownership interests. Nokia Shanghai Bell Co., Ltd. is the parent company of the Nokia Shanghai
Bell Group (NSB Group). Refer to Note 6.3. Significant partly-owned subsidiaries.
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Nokia in 2024
The Group's associated companies and joint ventures at 31 December 2024
Country of incorporation
Company name
Parent
holding %
Group
ownership
interest %
Finland
HMD Global Oy
—
10.0
Austria
TETRON Sicherheitsnetz Errichtungs-und BetriebsgmbH
—
35.0
China
Alcatel Shenyang Telecommunication Co., Ltd.
—
27.5
Fujian FUNO Mobile Communication Technology Co.,Ltd.
—
49.0
Zhejiang Bell Technical Co., Ltd.
—
20.0
Cuba
Copal, S.A.
—
49.0
France
ASN Holding
—
20.0
Cibair
—
19.0
III - V LAB
—
40.0
Hong Kong
TD Tech Holding Limited
—
51.0
Nigeria
ITT Nigeria Limited
—
40.0
Saudi Arabia
Nokia Solutions and Networks Al-Saudia Co. Limited
—
49.0
United States
MobileMedia Ideas LLC
—
40.0
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Nokia in 2024
6.3. Significant partly-owned subsidiaries
Nokia holds an ownership interest of 50% plus one share in Nokia Shanghai Bell’s parent
company, Nokia Shanghai Bell Co., Ltd. (NSB), with China Huaxin Post & Telecommunication
Economy Development Center (China Huaxin) holding the remaining ownership interests. Nokia
applied judgment to conclude that it is able to control NSB based on an assessment of various
factors including the ability to nominate key management personnel, decision-making related
to the management of NSB operations and Nokia’s exposure to variable returns from NSB.
In 2017, Nokia entered into a contractual arrangement providing China Huaxin with the right to
fully transfer its ownership interest in NSB to Nokia and Nokia with the right to purchase China
Huaxin’s ownership interest in NSB in exchange for a future cash settlement. To reflect this,
Nokia derecognized the non-controlling interest balance related to NSB and recognized a
financial liability based on the estimated future cash settlement to acquire China Huaxin’s
ownership interest.
In 2024, Nokia and China Huaxin have been together reviewing the future ownership structure of
NSB. Following those discussions, Nokia exercised its call option, outlined in NSB’s shareholders'
agreement, to initiate the process to become the sole shareholder by purchasing China Huaxin's
approximately 50% share in NSB. The execution of the call option is subject to completing
required steps under NSB's shareholders' agreement.
The measurement of the financial liability is complex as it involves estimation of the expected
future cash settlement and the distribution of excess cash balances. In 2024, Nokia recognized
a EUR 5 million loss (EUR 2 million loss in 2023) in financial income and expenses to reflect a
change in the estimated future cash settlement. At 31 December 2024, the expected future
cash settlement amounted to EUR 487 million (EUR 455 million in 2023).
Financial information for the Nokia Shanghai Bell Group
Financial information below is presented after elimination of intercompany transactions between
entities within the Nokia Shanghai Bell Group but before elimination of intercompany
transactions with the rest of the Nokia Group.
EURm
2024
2023
Summarized income statement
Net sales(1)
760
979
Operating profit/(loss)
46
(6)
Profit/(loss) for the year
11
(26)
Profit/(loss) for the year attributable to:
Equity holders of the parent
11
(26)
Non-controlling interests(2)
—
—
Summarized statement of financial position
Non-current assets
353
400
Non-current liabilities
(59)
(100)
Non-current net assets
294
300
Current assets(3)
1 622
1 642
Current liabilities
(854)
(900)
Current net assets
768
742
Net assets(4)
1 062
1 042
Non-controlling interests(2)
—
—
Summarized statement of cash flows
Net cash flows from operating activities
204
51
Net cash flows (used in)/from investing activities
(2)
2
Net cash flows used in financing activities
(85)
(41)
Translation differences
26
(38)
Net increase/(decrease) in cash and cash equivalents
143
(26)
(1)
Includes EUR 11 million (EUR 19 million in 2023) net sales to other Nokia Group entities.
(2)
Based on the contractual arrangement with China Huaxin, Nokia does not recognize any non-controlling interest in NSB.
(3)
Includes a total of EUR 843 million (EUR 700 million in 2023) of cash and cash equivalents.
(4)
The distribution of the profits of NSB requires the passing of a special resolution by more than two-thirds of its shareholders,
subject to a requirement that at least 50% of the after-tax distributable profits are distributed as dividends each year.
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Notes to the consolidated financial statements continued
Nokia in 2024
6.4. Related party transactions
Nokia has related party transactions with its subsidiaries, associated companies, joint ventures
and pension funds as well as the management and the Board of Directors. Transactions and
balances between group companies are eliminated on consolidation. For more information on
principles of consolidation and principal Group companies, refer to Note 1.2. General accounting
policies, and Note 6.2. Principal Group companies, respectively.
Transactions and balances with associated companies and joint ventures
EURm
2024
2023
2022
Sales
36
46
74
Purchases
(147)
(141)
(127)
Trade and other receivables
73
18
36
Trade and other payables
(35)
(31)
(26)
Investments in associated companies and joint ventures are individually immaterial. The
aggregate carrying amount for the investments in associated companies and joint venture was
EUR 124 million in 2024 (EUR 88 million in 2023).
On December 2024, Nokia completed the sale of Alcatel Submarine Networks (ASN) to the
French State. Nokia retained a 20% shareholding with board representation to ensure a smooth
transition until targeted exit, at which point it is planned for the French State to acquire Nokia’s
remaining interest. The retained interest is accounted for as an investment in an associate.
Refer to Note 2.6. Discontinued operations for more information on disposal of the Submarine
Networks business.
Nokia holds a 51% ownership interest in TD Tech Holding Limited (“TD Tech HK”), a Hong Kong
based joint venture holding company which Nokia has accounted for as an investment in
associated companies and joint ventures. In 2024, TD Tech HK completed the divestment
of the entire business of the joint venture through the sale of its operating subsidiaries to a
consortium consisting of Huawei Technologies, Chengdu High-tech Investment Group and other
buyers. Following the divestment, Nokia is in the process of exiting from its shareholding in
the parent company TD Tech HK. Nokia considered the transactions as a sale of associated
companies and joint ventures, recorded a gain of EUR 191 million related to the sale and
received a cash consideration of EUR 248 million from the sale in 2024.
In 2016, Nokia entered into a strategic agreement with HMD Global Oy (HMD) granting HMD an
exclusive global license to create Nokia branded mobile phones and tablets for 10 years. Under
the agreement, Nokia receives royalty payments from HMD for sales of Nokia branded mobile
phones and tablets, covering both brand and patent licensing. In August 2023, Nokia and HMD
amended the licensing agreement so that HMD’s exclusive license to create Nokia branded
devices will expire by March 2026. Nokia has held an ownership interest in HMD since 2020
which it has accounted for as an investment in associate. In 2023, Nokia recorded an impairment
loss of EUR 28 million related to its investment in HMD in the share of result of associates and
joint ventures.
Transactions with pension funds
Nokia has borrowings of EUR 35 million (EUR 37 million in 2023) from Nokia’s German pension
fund, a separate legal entity. The indefinite loan bears 6% annual interest and can be terminated
by either party with a 90-day notice. The loan is included in short-term interest-bearing liabilities
in the statement of financial position. For more information on Nokia’s post-employment benefit
plans, refer to Note 3.4. Pensions and other post-employment benefits.
Transactions with the Group Leadership Team and the Board of Directors
No loans were granted to the members of the Group Leadership Team and the Board of
Directors in 2024, 2023 or 2022. For information on remuneration of Nokia’s key management
personnel, refer to Note 3.2. Remuneration of key management.
6.5. Subsequent events
Non-adjusting events after the reporting period
Change of President and CEO
On 10 February 2025, Nokia announced its President and CEO, Pekka Lundmark, will step down
effective 31 March 2025. The Board of Directors has appointed Justin Hotard as the next
President and CEO. He will start in his new role on 1 April 2025. Mr. Lundmark will stay on as an
advisor to Mr. Hotard until the end of the year to ensure a smooth transition.
Mr. Hotard joins Nokia with more than 25 years of experience with global technology companies,
driving innovation and technology leadership as well as delivering revenue growth. He currently
leads the Data Center & AI Group at Intel. Prior to this role, he held several leadership roles at
large technology companies, including Hewlett Packard Enterprise and NCR Corporation.
Infinera acquisition
On 28 February 2025, Nokia completed the acquisition of Infinera Corporation (Infinera),
pursuant to the definitive agreement announced on 27 June 2024. Infinera, the San Jose
based global supplier of innovative open optical networking solutions and advanced optical
semiconductors, has become part of the Nokia group effective as of the closing with Nokia
holding 100% of its equity and voting rights. The acquisition will significantly improve Nokia’s
scale and profitability in optical networks, and accelerate Nokia’s growth strategy in data centers
and strengthen its presence both in North America and with webscale customers.
The aggregated consideration transferred of EUR 1.7 billion is a combination of cash of EUR
1.1 billion and Nokia shares in the form of American Depository Shares of EUR 0.6 billion,
corresponding to 127 434 986 shares. Additionally, the acquisition resulted in a make whole
conversion for Infinera’s convertible senior notes in line with relevant bond indentures. Following
the ongoing conversion and subsequent observation period for Nokia stock price, any
surrendered notes are expected to be settled in cash during the second quarter of 2025.
Nokia will report the acquired business as part of its Network Infrastructure segment. The
acquisition will be accounted for as a business combination using the acquisition method. Nokia
is currently in the process of determining the initial purchase accounting for this transaction.
Considering the timing of the acquisition and the issuance of consolidated financial statements
for the year ended 31 December 2024, Nokia determined it to be impracticable to disclose a
preliminary purchase price allocation at this time.
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Notes to the consolidated financial statements continued
Nokia in 2024
EURm
Note
2024
2023
Net sales
—
1
Gross profit
—
1
Selling, general and administrative expenses
(67)
(59)
Other operating income
4
14
7
Other operating expenses
4
(23)
(7)
Operating loss
(76)
(58)
Financial income and expenses
Income from non-current investments
5
50
411
Interest and other financial income
5
549
638
Interest and other financial expenses
5
(622)
(654)
Loss on sale of liquidated businesses
5
(2)
—
Total financial income and expenses
(25)
395
(Loss)/profit before tax
(101)
337
Income tax
6
2
9
(Loss)/profit for the year
(99)
346
The notes are an integral part of these financial statements.
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Parent Company income statement
Nokia in 2024
EURm
Note
2024
2023
ASSETS
Non-current assets
Intangible rights
2
2
Total intangible assets
2
2
Land and water areas
7
8
9
Buildings
7
65
69
Machinery and equipment
7
1
1
Other tangible assets
7
4
4
Assets under construction
7
8
3
Total tangible assets
86
86
Investments in subsidiaries
8
18 192
18 695
Non-current interest-bearing financial investments
8, 13
457
715
Other non-current financial investments
8, 13
1
1
Total investments
18 650
19 411
Non-current loan receivables from Group companies
13
1 412
2 714
Non-current loan receivables from other companies
13
16
1
Other non-current receivables
23
28
Deferred tax assets
6
19
19
Total other non-current assets
1 470
2 762
Total non-current assets
20 208
22 261
Current assets
Current interest-bearing financial investments
13
1 576
1 512
Current loan receivables from Group companies
13
1 187
2 362
Other financial assets from Group companies
13, 14
43
101
Other financial assets from other companies
13, 14
225
131
Prepaid expenses and accrued income from Group companies(1)
9
158
162
Prepaid expenses and accrued income from other companies(1)
9
509
491
Total current assets
3 698
4 759
Cash and cash equivalents
13
4 421
4 048
Total assets
28 327
31 068
EURm
Note
2024
2023
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
Share capital
10
246
246
Share premium
10
46
46
Fair value and other reserves
10
41
21
Reserve for invested unrestricted equity
10
13 448
14 849
Retained earnings
10
1 025
1 394
(Loss)/profit for the year
10
(99)
346
Total equity
14 707
16 902
Provisions
11
30
47
Non-current liabilities
Long-term interest-bearing liabilities
12, 13
2 647
3 383
Total non-current liabilities
2 647
3 383
Current liabilities
Short-term interest-bearing liabilities to Group companies
12, 13
8 179
9 228
Short-term interest-bearing liabilities to other companies
12, 13
914
475
Other financial liabilities to Group companies
13
35
88
Other financial liabilities to other companies
13
1 605
740
Accounts payable to Group companies
48
54
Accounts payable to other companies
37
20
Accrued expenses and other liabilities to Group companies
15
33
43
Accrued expenses and other liabilities to other companies
15
92
88
Total current liabilities
10 943
10 736
Total liabilities
13 590
14 119
Total shareholders' equity and liabilities
28 327
31 068
(1)
Classification of balance sheet items was changed in 2024. The comparative year has been revised accordingly.
The notes are an integral part of these financial statements.
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Parent Company statement of financial position
At 31 December
Nokia in 2024
Cash flow from operating activities
(Loss)/profit for the year
(99)
346
Adjustments, total
117
(343)
Depreciation and amortization
3
6
Income tax
(2)
(9)
Financial income and expenses, net
73
16
Other financial items
(50)
(411)
Share-based payment
99
59
Provisions
(10)
—
Disposals of intangible and tangible assets
3
—
Gain on sale of property, plant & equipment
—
(4)
Liquidation of a subsidiary
2
—
Other income and expenses
(1)
—
Change in net working capital
Decrease/(increase) in receivables
10
(37)
Increase/(decrease) in non-interest-bearing liabilities
6
(5)
Cash from/(used in) operations
34
(39)
Interest received
486
589
Interest paid
(603)
(651)
Other financial income and expenses paid/received, net
(2)
1
Income taxes paid
(3)
(1)
Net cash used in operating activities
(88)
(101)
EURm
2024
2023
Capital return on shares in subsidiary companies
502
—
Dividends received from subsidiary companies
—
411
Purchase of property, plant and equipment and intangible assets
(6)
(5)
Proceeds from sale of property, plant and equipment and other intangible
—
4
Proceeds from other non-current receivables
1 400
4
Proceeds from current receivables
1 120
2 471
Purchase of non-current investments
(278)
(290)
Proceeds from non-current investments
544
190
Purchase of current investments
(579)
(1 487)
Proceeds from current investments
560
3 156
Net cash from investing activities
3 263
4 454
Purchase of own shares
(680)
(300)
Payments of long-term borrowings
(1 049)
(300)
Payments of short-term borrowings
(358)
(1 890)
Dividends paid
(715)
(612)
Group contributions, net
—
(560)
Net cash used in financing activities
(2 802)
(3 662)
Net increase in cash and cash equivalents
373
691
Cash and cash equivalents as of 1 January
4 048
3 357
Cash and cash equivalents as of 31 December
4 421
4 048
EURm
2024
2023
The notes are an integral part of these financial statements.
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Parent Company statement of cash flows
For the year ended 31 December
Nokia in 2024
1. Accounting principles
Basis of presentation
Nokia Corporation (Parent Company) is responsible for
arranging Nokia’s internal financing. Changes in the internal
and external financing needs arising from changes in operative
and organizational models affect the Parent Company’s
financial position.
Parent Company financial statements are prepared in
accordance with the Finnish Accounting Standards (FAS).
The Parent Company applies Chapter 5 section 2a of the
Finnish Accounting Act to the recognition, measurement
and presentation of derivative contracts and other financial
instruments, as applicable, and thus applies the same
accounting policies as in the consolidated financial statements.
The Parent Company has one branch which is located in
Switzerland: Nokia Oyj, Succursale de Lancy. The branch is
included in the Parent Company’s financial statements. For
the full list of all Group companies, refer to Note 6.2. Group
companies in the consolidated financial statements.
Foreign currency translation
Financial statements of the Parent Company are presented
in euro. Transactions in foreign currencies are recorded at
exchange rates prevailing at the date of the transactions. For
practical reasons, a rate that approximates the actual rate at
the date of the transaction is often used. Monetary assets and
liabilities denominated in foreign currency are translated at the
exchange rates prevailing at the end of the reporting period.
Foreign exchange gains and losses are recognized in financial
income and expenses.
Share-based payments
The Parent Company offers three types of equity-settled
share-based compensation plans for employees: performance
shares, restricted shares and the employee share purchase
plan. Share-based compensation is recognized as an expense
when the shares are delivered. The settlement covers taxes
and similar charges incurred.
Pensions
Contributions to pension plans are expensed in the period to
which the contributions relate. Pension expenses are reported
according to the local legislation.
Intangible assets and property, plant and equipment
Intangible assets are stated at cost less accumulated
amortization. Property, plant and equipment is stated at cost
less accumulated depreciation. Depreciation and amortization
are recorded on a straight-line basis over the expected useful
lives of the assets as follows:
Intangible assets
3–7 years
Buildings
20–33 years
Machinery and equipment
3–10 years
Land and water areas are not depreciated.
Classification and measurement of financial assets
Investments in subsidiaries are stated at cost or at cost less
accumulated impairment, if the estimated future revenue
generated by the investment is expected to be permanently
lower than the acquisition cost. Interest-bearing financial
assets with Group Companies are carried at nominal value and
not in excess of their probable value. Derivative assets are
classified at fair value through profit and loss. The Parent
Company classifies its other financial assets into the following
categories: financial assets measured at cost and financial
assets measured at fair value through profit and loss. The
selection of the appropriate category is made based on both
the Parent Company’s business model for managing the
financial asset and on the contractual cash flow characteristics
of the asset.
The business model for managing financial assets is defined on
a portfolio level. The business model must be observable on a
practical level by the way the business is managed. The cash
flows of financial assets measured at cost are solely payments
of principal and interest. These assets are held within a
business model that has an objective to hold assets to collect
contractual cash flows. Financial assets are measured at fair
value through profit or loss if they do not meet the
requirements of the aforementioned category. Additionally,
the accounting for financial assets depends on whether the
financial asset is part of a hedging relationship (see the section
on hedge accounting below).
All purchases and sales of financial assets are recorded on the
trade date, i.e. when the Parent Company commits to purchase
or sell the asset. A financial asset is derecognized when
substantially all the risks and rewards related to the financial
asset have been transferred to a third party that assumes
control of the financial asset.
Interest-bearing financial investments
The Parent Company invests a portion of the corporate cash
needed to cover the projected cash outflows of its ongoing
business operations in highly liquid, interest-bearing
investments. Interest-bearing financial investments may
include investments measured at cost and investments
measured at fair value through profit and loss.
Non-current interest-bearing financial investments are
investments in highly liquid corporate bonds that are long-term
in nature based on their maturity on the reporting date and are
measured at cost and not in excess of their probable value.
Current interest-bearing financial investments in bank
deposits, as well as fixed income and money market securities
with initial maturity or put feature longer than three months
that have characteristics of solely payments of principal and
interest and are not part of structured investments, are
managed in a portfolio with a business model of holding
investments to collect principal and interest and measured
at cost and not in excess of their probable value. These
investments are executed with the main purpose of collecting
contractual cash flows and principal repayments. However,
investments are sold from time to time for liquidity
management and market risk mitigation purposes.
Current interest-bearing financial investments may also include
money market funds that do not qualify as cash equivalents,
investments acquired for trading purposes, investment
structures consisting of securities traded in combination with
derivatives with complementing and typically offsetting risk
factors and other investments that have cash flows not being
solely payments of principal and interest. These investments
are executed with the purpose of collecting contractual
cash flows and principal repayments as well as for capital
appreciation and can be sold at any time. These investments
are classified as fair value through profit or loss, with fair value
adjustments, foreign exchange gains and losses and realized
gains and losses recognized in financial income and expenses
in the income statement. The fair values of these investments
are based on publicly available market information.
Corporate cash investments in bank deposits used as collateral
for derivative transactions are measured at cost.
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Notes to the Parent Company financial statements
Nokia in 2024
Loans receivables from Group Companies
Loans are subject to quarterly review as to their collectability
and available collateral. An allowance is made if a loan is
deemed not to be fully recoverable. The related cost is
recognized in financial expenses to reflect the shortfall
between the carrying amount and the present value of the
expected future cash flows. Interest income on loan receivables
is recognized in financial income.
Cash and cash equivalents
Cash and cash equivalents include cash at bank and in hand
as well as highly liquid, fixed-income and money-market
investments that are readily convertible to known amounts of
cash with maturities at acquisition of three months or less, as
well as bank deposits with maturities or contractual call periods
at acquisition of three months or less. Due to the high credit
quality and short-term nature of these investments, there is
an insignificant risk of change in value. Investments in money-
market funds that have a risk profile consistent with the
aforementioned criteria are also classified as cash equivalents.
Impairment of financial assets
Loss allowance for expected credit losses is recognized on
financial assets measured at cost, financial assets measured at
fair value through fair value reserve, interest-bearing assets
with Group companies, financial guarantee contracts and loan
commitments. The Parent Company continuously assesses its
financial instruments on a forward-looking basis and accounts
for the changes in expected credit losses on a quarterly basis.
Refer to Note 4.5 Trade receivables and other customer-
related balances in the consolidated financial statements.
Classification and measurement of financial liabilities
The Parent Company classifies derivative liabilities at fair value
through profit and loss and all other financial liabilities at
nominal value.
Interest-bearing liabilities
Interest-bearing liabilities, including the current portion
of long-term interest-bearing liabilities and collaterals for
derivative transactions, are measured at nominal value.
Transaction costs are initially recognized as prepaid expenses
and amortized to the income statement over the life of the
instrument. Foreign exchange gains and losses as well as
interest expenses are recognized in financial income and
expenses in the income statement.
Accounts payable
Accounts payable are carried at the invoiced amount.
Derivative financial instruments
Other financial assets and other financial liabilities are mainly
comprised of derivatives. They are recognized initially at fair
value on the date a derivative contract is entered into and
subsequently remeasured at fair value. The method of
recognizing the resulting gain or loss varies according to
whether the derivatives are designated and qualify under
hedge accounting.
Derivatives not designated in hedge accounting relationships
carried at fair value through profit and loss
Foreign exchange forward contracts are valued at market-
forward exchange rates at the reporting date. Changes in fair
value are measured by comparing these rates with the original
contract-forward rate. Currency options are valued at each
reporting date by using the Garman & Kohlhagen option
valuation model. Changes in fair value are recognized in
financial income and expenses in the income statement.
Fair values of forward rate agreements, interest rate options,
futures contracts and exchange-traded options are calculated
based on quoted market rates at each reporting date.
Discounted cash flow method is used to value interest rate
and cross-currency swaps. Changes in fair value are recognized
in financial income and expenses in the income statement.
Interest income or expense on interest rate derivatives is
accrued in the income statement during the financial year.
Hedge accounting
The Parent Company applies hedge accounting on certain
forward foreign exchange contracts, certain options or option
strategies, and interest rate derivatives. Qualifying options and
option strategies have zero net premium, or a net premium
paid. For option structures, the critical terms of the purchased
and written options are the same and the nominal amount of
the written option component is not greater than that of the
purchased option.
The Parent Company applies fair value hedge accounting to
reduce exposure to fair value fluctuations of interest-bearing
liabilities due to changes in interest rates and foreign exchange
rates. Interest rate swaps and cross-currency swaps are used
aligned with the hedged items to hedge interest rate risk and
associated foreign exchange risk.
Changes in the fair value of derivatives designated and
qualifying as fair value hedges, together with any changes in
the fair value of hedged liabilities attributable to the hedged
risk, are recorded in financial income and expenses in the
income statement. The Parent Company separates the foreign
currency basis spread from cross-currency swaps and excludes
it from the hedged risk as cost of hedging that is initially
recognized and subsequently measured at fair value and
recorded in cost of hedging reserve. If a hedge relationship
no longer meets the criteria for hedge accounting, hedge
accounting ceases, cost of hedging recorded in cost of
hedging reserve is immediately expensed and any fair value
adjustments made to the carrying amount of the hedged item
while the hedge was effective are recognized in financial
income and expenses in the income statement based on
the effective interest method.
The Parent Company also applies cash flow hedging to future
interest cash flows in foreign currency related to issued bonds.
These future interest cash flows are hedged with cross-
currency swaps that have been bifurcated and designated
partly as fair value hedges to hedge both foreign exchange and
the interest rate benchmark risk component of the issued bond
and partly as cash flow hedges to hedge the foreign exchange
risk related to the remaining portion of interest cash flows on
the issued bond. The accumulated gain or loss for the part of
these cross-currency swaps designated as cash flow hedges is
initially recorded in hedging reserve and reclassified to profit
or loss at the time when the related interest cash flows are
settled. The Parent Company separates the foreign currency
basis spread from cross-currency swaps and excludes it from
the hedge relationship as cost of hedging that is initially
recognized and subsequently measured at fair value and
recorded in cost of hedging reserve.
Deferred tax
Deferred tax assets are recognized to the extent it is probable
that future taxable profit will be available against which
the unused tax losses, unused tax credits and deductible
temporary differences can be utilized. The company continually
evaluates the probability of utilizing its deferred tax assets
and considers both positive and negative evidence in its
assessment. Evaluation takes into account that Nokia entities
in Finland can balance their taxable profits via the group
contribution system.
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Nokia in 2024
2. Personnel expenses
EURm
2024
2023
Salaries and wages
32
29
Share-based payments
—
1
Pension expenses
4
6
Social security expenses
—
1
Total
36
37
Average number of employees
2024
2023
Marketing
8
9
Administration
191
205
Total average
199
214
Number of employees at 31 December
194
212
Management remuneration
Refer to Note 3.2. Remuneration of key management personnel in the consolidated financial
statements.
There were no loans granted to the members of the Nokia Group Leadership Team or Board of
Directors at 31 December 2024 or 2023.
3. Auditor’s fees
Deloitte Oy served as our auditor and our sustainability reporting assurer for the financial year
ended 31 December 2024 and as our auditor for the financial year ended 31 December 2023.
The auditor and the sustainability reporting assurer are elected annually by our shareholders at
the Annual General Meeting for the next financial year commencing after the election.
The following table presents fees by type paid to Deloitte’s network of firms for the years ended
31 December:
Parent Company
Nokia Group
EURm
2024
2023
2024
2023
Audit fees
9
10
18
20
Audit-related fees
2
—
3
2
Tax fees
—
—
—
1
Other fees
—
—
—
—
Total
11
10
21
23
In 2024, Deloitte Oy performed non-audit services for the Parent company for total fees of EUR
2 113 thousand (EUR 483 thousand in 2023). These services included services described in
Auditing Act 1:1.2 § for EUR 1 871 thousand in 2024 (EUR 24 thousand in 2023) and other non-
audit services for EUR 242 thousand (EUR 459 thousand in 2023).
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Nokia in 2024
4. Other operating income and expenses
EURm
2024
2023
Other operating income
Release of environmental provision
10
—
Sale of building rights
—
4
Rental income
3
3
Other income
1
—
Total
14
7
Other operating expenses
Write-off of receivables
(23)
(6)
Other expenses
—
(1)
Total
(23)
(7)
5. Financial income and expenses
EURm
2024
2023
Income from non-current investments
Dividend income from Group companies
50
411
Total
50
411
Interest and other financial income
Interest income from Group companies
275
440
Interest income from other companies
231
170
Foreign exchange gains, net
29
22
Other financial income from other companies
14
6
Total
549
638
Interest and other financial expenses
Interest expenses to Group companies
(414)
(462)
Interest expenses to other companies
(189)
(179)
Loss on liquidation of shares and businesses
(2)
—
Other financial expenses to other companies
(19)
(13)
Total
(624)
(654)
Financial income and expenses include EUR 13 million expense related to derivative financial
instruments subject to hedge accounting (EUR 93 million expense in 2023) and EUR 10 million
income related to liabilities subject to fair value hedge accounting (EUR 89 million income in 2023).
6. Income taxes
EURm
2024
2023
Current tax
(3)
(4)
Tax relating to previous financial years
—
3
Deferred tax
5
10
Total
2
9
At 31 December 2024, the company has recognized deferred tax assets of EUR 19 million
(EUR 19 million in 2023). Furthermore, at 31 December 2024, the company had unrecognized
deferred tax assets of EUR 12 million related to unused tax credits (EUR 12 million in 2023) and
EUR 20 million related to deductible temporary differences (EUR 20 million in 2023), the use of
which was not considered probable and therefore no deferred tax asset has been recognized in
the statement of financial position.
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Nokia in 2024
7. Tangible assets
EURm
Land and
water areas
Buildings
Machinery and
equipment
Other
tangible
assets and
advance
payments
Assets
under
construction
Total
Acquisition cost at 1 January 2023
9
160
16
5
—
190
Additions
—
2
—
—
3
5
Acquisition cost at 31 December 2023
9
162
16
5
3
195
Accumulated depreciation at 1 January
2023
—
(88)
(14)
(1)
—
(103)
Depreciation(1)
—
(5)
(1)
—
—
(6)
Accumulated depreciation at 31
December 2023
—
(93)
(15)
(1)
—
(109)
Net book value at 1 January 2023
9
72
2
4
—
87
Net book value at 31 December 2023
9
69
1
4
3
86
Acquisition cost at 1 January 2024
9
162
16
5
3
195
Additions
—
—
—
—
6
6
Disposals and retirements
(1)
(3)
—
—
—
(4)
Reclassifications
—
1
1
—
(1)
1
Acquisition cost at 31 December 2024
8
160
17
5
8
198
Accumulated depreciation at 1 January
2024
—
(93)
(15)
(1)
—
(109)
Disposals and retirements
—
2
—
—
—
2
Depreciation(1)
—
(4)
(1)
—
—
(5)
Accumulated depreciation at 31
December 2024
—
(95)
(16)
(1)
—
(112)
Net book value at 1 January 2024
9
69
1
4
3
86
Net book value at 31 December 2024
8
65
1
4
8
86
(1)
Recognized in selling, general and administrative expenses.
8. Investments
EURm
2024
2023
Investments in subsidiaries
Net carrying amount at 1 January
18 695
18 695
Capital return
(501)
—
Disposals
(2)
—
Net carrying amount at 31 December
18 192
18 695
Non-current interest-bearing financial investments
Net carrying amount at 1 January
715
697
Additions
278
288
Disposals
(544)
(190)
Reclassification
2
(84)
Other changes
6
4
Net carrying amount at 31 December
457
715
Other non-current financial investments
Net carrying amount at 1 January
1
1
Additions
2
—
Other changes
(2)
—
Net carrying amount at 31 December
1
1
Subsidiaries and associated companies are presented in note 6.2. Group companies in the
consolidated financial statements.
9. Prepaid expenses and accrued income
EURm
2024
2023
Expected future cash settlement to acquire non-controlling interest in Nokia
Shanghai Bell(1)
486
454
Accrued interest
44
73
Other receivables from Group companies
99
61
Other accrued income from Group companies(2)
26
42
Other prepaid expenses and accrued income from other companies(2)
12
23
Total
667
653
(1)
Refer to Note 6.3. Significant partly-owned subsidiaries in the consolidated financial statements.
(2)
Classification of balance sheet items was changed in 2024. The comparative year has been revised accordingly.
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Nokia in 2024
10. Shareholders’ equity
Changes in shareholders’ equity
EURm
Share capital
Share premium
Fair value and
other reserves
Reserve for
invested
unrestricted
equity
Retained
earnings(1)
Total
At 1 January 2023
246
46
31
15 091
2 006
17 419
Settlement of share-based payments
—
—
—
59
—
59
Acquisition of treasury shares(2)
—
—
—
(300)
—
(300)
Net fair value gains/(losses)
—
—
(10)
—
—
(10)
Dividends
—
—
—
—
(612)
(612)
Profit for the year
—
—
—
—
346
346
At 31 December 2023
246
46
21
14 849
1 740
16 902
Settlement of share-based payments
—
—
—
99
—
99
Acquisition of treasury shares(2)
—
—
—
(1 501)
—
(1 501)
Net fair value gains/(losses)
—
—
20
—
—
20
Dividends
—
—
—
—
(715)
(715)
Loss for the year
—
—
—
—
(99)
(99)
At 31 December 2024
246
46
41
13 448
926
14 707
(1)
Includes treasury shares of EUR 344 million reducing the amount of retained earnings.
(2)
In 2024, Nokia repurchased 176 832 266 shares under the share buyback programs announced in January and November 2024 (78 301 011 in 2023 under the second
phase of the 2022 program). Shares were repurchased using the reserve for invested unrestricted equity, and hence the repurchases reduced Nokia’s total unrestricted
equity. The shares repurchased under the January 2024 program were canceled in December 2024. In connection with the share buyback program launched in November
2024, Nokia has recorded a liability and a reduction of reserve for invested unrestricted equity of EUR 821 million to reflect Nokia’s commitment under the agreement
with a third-party broker conducting the share repurchases on Nokia’s behalf. For more information on Nokia’s share buyback programs, refer to Note 5.1. Equity in the
consolidated financial statements.
Fair value and other reserves
Hedging reserve
Cost of hedging
Total
EURm
Gross
Tax
Net
Gross
Tax
Net
Gross
Tax
Net
At 1 January 2023
42
(8)
34
(3)
—
(3)
39
(8)
31
Fair value and cash flow hedges
Net fair value gains/(losses)
(19)
4
(15)
9
(2)
7
(10)
2
(8)
Transfer to income statement
(2)
—
(2)
—
—
—
(2)
—
(2)
At 31 December 2023
21
(4)
17
6
(2)
4
27
(6)
21
Fair value and cash flow hedges
Net fair value gains/(losses)
12
(2)
10
15
(3)
12
27
(5)
22
Transfer to income statement
(2)
—
(2)
—
—
—
(2)
—
(2)
At 31 December 2024
31
(6)
25
21
(5)
16
52
(11)
41
Distributable earnings
EURm
2024
2023
Reserve for invested unrestricted equity
13 448
14 849
Retained earnings
1 025
1 394
(Loss)/profit for the year
(99)
346
Unrestricted equity total
14 374
16 589
Distributable funds total
14 374
16 589
The shares of the Parent company
Refer to Note 5.1. Equity in the consolidated financial statements.
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Nokia in 2024
11. Provisions
EURm
2024
2023
Divestment-related
30
37
Other
—
10
Total
30
47
12. Interest-bearing liabilities
Carrying amount EURm(1)
Issuer/borrower
Instrument
Currency
Nominal (million)
Final maturity
2024
2023
Nokia Corporation
2.00% Senior Notes
EUR
378
3/2024
—
375
Nokia Corporation
EIB R&D Loan
EUR
500
2/2025
500
500
Nokia Corporation
NIB R&D Loan
EUR
83
5/2025
83
167
Nokia Corporation
2.375% Senior Notes
EUR
292
5/2025
292
289
Nokia Corporation
2.00% Senior Notes
EUR
630
3/2026
625
615
Nokia Corporation
4.375% Senior Notes
USD
500
6/2027
459
432
Nokia Corporation
3.125% Senior Notes
EUR
500
5/2028
488
481
Nokia Corporation
4.375% Sustainability-linked Senior Notes(2)
EUR
500
8/2031
517
515
Nokia Corporation
NIB R&D Loan(3)
EUR
100
10/2032
100
—
Nokia Corporation
6.625% Senior Notes
USD
500
5/2039
458
467
Nokia Corporation
Other borrowings from Group companies
8 179
9 228
Nokia Corporation
Other borrowings from other companies
39
17
Total
11 740
13 086
(1)
Carrying amount includes EUR 46 million of fair value losses (EUR 31 million in 2023) related to fair value hedge accounting relationships, including EUR 137 million of fair value
gains (EUR 156 million in 2023) related to discontinued fair value hedge accounting relationships that are amortized over the life of the respective senior notes.
(2)
The bond has a one-time redemption premium at maturity of EUR 4 million in case Nokia does not meet its commitment to reduce its greenhouse gas (GHG) emissions (in
tCO2e) across its value chain (Scope 1, 2, and 3) by 50% between 2019 and 2030. This target is one of Nokia’s key sustainability targets and has been selected to be the
Sustainability Performance Target in Nokia’s Sustainable Finance Framework that enables the issuance of sustainability-linked financing instruments.
(3)
In October 2024, Nokia signed a loan facility agreement of EUR 250 million with the Nordic Investment Bank (NIB) for financing research and development of 5G and 6G
technology. As of 31 December 2024, EUR 100 million has been drawn from the facility and is repayable in two equal installments in 2031 and 2032. The availability period of
the remaining loan facility of EUR 150 million ends in April 2025.
Significant credit facilities and funding programs:
Utilized (million)
Committed / uncommitted
Financing arrangement
Currency
Nominal (million)
2024
2023
Committed
Revolving Credit Facility(1)
EUR
1 412
—
—
Committed
NIB Loan Facility(2)
EUR
250
100
Uncommitted
Finnish Commercial Paper Programme
EUR
750
—
—
Uncommitted
Euro-Commercial Paper Programme
EUR
1 500
—
—
Uncommitted
Euro Medium Term Note Programme(3)
EUR
5 000
1 922
2 300
Total
2 022
2 300
(1)
The facility has its maturity in June 2026.
(2)
The availability period of the remaining loan facility of EUR 150 million ends in April 2025.
(3)
All euro-denominated bonds have been issued under the Euro Medium Term Note Programme.
All borrowings and credit facilities presented in the tables above are senior unsecured and have no financial covenants.
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Nokia in 2024
13. Fair value of financial instruments
Financial assets and liabilities recorded at fair value are categorized based on the amount of unobservable inputs used to
measure their fair value. Three hierarchical levels are based on an increasing amount of judgment associated with the inputs used
to derive fair valuation for these assets and liabilities, level 1 being market values for exchange traded products, level 2 being
primarily based on publicly available market information, and level 3 requiring most management judgment. At the end of each
reporting period, Nokia categorizes its financial assets and liabilities to the appropriate level of fair value hierarchy. Items carried
at fair value in the following table are measured at fair value on a recurring basis.
2024
2023
Carrying amounts
Fair value(1)
Carrying amounts
Fair value(1)
EURm
Amortized
cost
Level 2
Level 3
Total
Total
Amortized
cost
Level 2
Level 3
Total
Total
Non-current Interest-Bearing financial investments
457
—
—
457
466
715
—
—
715
717
Other non-current financial investments
—
—
1
1
1
—
—
1
1
1
Non-current loan receivables from Group companies
1 412
—
— 1 412
1 412
2 714
—
— 2 714
2 714
Non-current loan receivables from other companies
16
—
—
16
16
1
—
—
1
1
Current loan receivables from Group companies
1 187
—
— 1 187
1 187
2 362
—
— 2 362
2 362
Other current financial assets from Group
companies including derivatives
—
43
—
43
43
— 101
—
101
101
Other current financial assets from other
companies including derivatives
— 225
—
225
225
— 131
—
131
131
Current interest-bearing financial investments
486 1 090
— 1 576
1 576
874 638
— 1 512
1 512
Cash and cash equivalents
3 050 1 371
— 4 421
4 421
2 605 1 443
— 4 048
4 048
Total financial assets
6 608 2 729
1 9 338
9 347
9 271 2 313
1 11 585
11 587
Long-term interest-bearing liabilities to other
companies
2 647
—
— 2 647
2 636
3 383
—
— 3 383
3 368
Short-term interest-bearing liabilities to Group
companies
8 179
—
— 8 179
8 179
9 228
—
— 9 228
9 228
Short-term interest-bearing liabilities to other
companies
914
—
—
914
914
475
—
—
475
475
Other financial liabilities to Group companies
including derivatives
—
35
—
35
35
—
88
—
88
88
Other financial liabilities to other companies
including derivatives
1 119
— 486 1 605
1 605
— 286 454
740
741
Total financial liabilities
12 859
35 486 13 380
13 369
13 086 374 454 13 914
13 900
(1)
The following fair value measurement methods are used for items not carried at fair value: The fair values of long-term interest-bearing liabilities are primarily based on publicly
available market information (level 2). The fair values of other assets and liabilities, including loans receivable and loans payable are primarily based on discounted cash flow
analysis (level 2). The fair value is estimated to equal the carrying amount for current financial assets and financial liabilities due to limited credit risk and short time to maturity.
Refer to Note 5.2 Financial assets and liabilities in the consolidated financial statements.
The level 2 category includes financial assets and liabilities
measured using a valuation technique based on assumptions
that are supported by prices from observable current market
transactions. These include assets and liabilities with fair values
based primarily on publicly available market information,
financial assets with fair values based on broker quotes
and assets that are valued using the Parent Company’s own
valuation models whereby the material assumptions are
market observable. The majority of the Parent Company’s cash
equivalents, current investments, over-the-counter derivatives
and certain other products are included within this category.
Level 3 financial liabilities include a liability for acquiring China
Huaxin's ownership interest in Nokia Shanghai Bell. The fair
value of the financial liability related to the obligation is
determined according to the present value of the expected
future cash payment. Change in this liability does not have an
impact on income statement. Refer to Note 6.3. Significant
partly-owned subsidiaries in the consolidated financial
statements.
Reconciliation of the opening and closing balances of level 3
financial assets and liabilities:
Level 3 Financial
Level 3 Financial
EURm
Assets
Liabilities
At 1 January 2023
1
(482)
Other movements
—
28
At 31 December 2023
1
(454)
At 1 January 2024
1
(454)
Other movements
—
(32)
At 31 December 2024
1
(486)
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Nokia in 2024
14. Derivative financial instruments
Assets
Liabilities
EURm
Fair value(1)
Notional(2)
Fair value(1)
Notional(2)
At 31 December 2024
Fair value hedges
Interest rate swaps
28
1 130
(10)
792
Cash flow and fair value hedges(3)
Cross-currency interest rate swaps
15
241
(97)
722
Derivatives not designated in hedge accounting relationships carried at fair value
through profit and loss
Forward foreign exchange contracts, other companies
120
8 037
(190)
7 685
Forward foreign exchange contracts, Group companies
43
3 536
(35)
2 734
Currency options bought, other companies
15
860
—
—
Currency options sold, Group companies
—
—
—
90
Total
221
13 804
(332)
12 023
At 31 December 2023
Fair value hedges
Interest rate swaps
24
1 195
(29)
1 105
Cash flow and fair value hedges(3)
Cross-currency interest rate swaps
—
—
(143)
905
Derivatives not designated in hedge accounting relationships carried at fair value
through profit and loss
Forward foreign exchange contracts, other companies
104
9 697
(114)
8 453
Forward foreign exchange contracts, Group companies
101
5 655
(85)
5 209
Currency options bought, other companies
3
476
—
—
Currency options bought, Group companies
—
23
—
—
Currency options sold, other companies
—
—
—
23
Currency options sold, Group companies
—
—
(3)
476
Total
232
17 046
(374)
16 171
(1)
Included in other current financial assets and other current financial liabilities in the statement of financial position.
(2)
Includes the gross amount of all notional values for contracts that have not yet been settled or cancelled. The amount of notional value outstanding is not necessarily a
measure or indication of market risk as the exposure of certain contracts may be offset by that of other contracts.
(3)
Cross-currency interest rate swaps have been designated partly as fair value hedges and partly as cash flow hedges.
Derivative financial instrument designation to hedging relationships in the table above presents the use of and accounting for
derivative financial instruments from the perspective of the Parent Company’s standalone financial statements, which may
differ from the designation in the consolidated financial statements. Refer to 5.3. Derivative and firm commitment assets and
liabilities in the consolidated financial statements.
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Nokia in 2024
15. Accrued expenses and other liabilities
EURm
2024
2023
Accrued interest expenses
47
52
Salaries and social expenses
12
9
VAT and other indirect taxes
20
11
Other accrued expenses to Group companies
32
43
Other accrued expenses to other companies
14
16
Total
125
131
16. Commitments and contingencies
EURm
2024
2023
Contingent liabilities on behalf of Group
companies
Lease guarantees
1 058
1 028
Other guarantees
1 429
1 523
At 31 December 2024, operating lease commitments
amounted to EUR 3 million (EUR 3 million in 2023).
17. Financial risk management
Nokia has a systematic and structured approach to financial
risk management across business operations and processes.
Financial risk management policies and procedures are group-
wide, and there are no separate or individual financial risk
management policies or procedures for the Parent Company.
Hence, internal and external financial risk exposures and
transactions are managed only in the context of the Nokia
financial risk management strategy. The Parent Company is
the centralized external dealing entity in Nokia. The Parent
Company executes all significant external financial transactions
with banks based on Nokia’s financial risk management strategy
and executes identical opposite internal financial transactions
with Nokia companies as required. Refer to Note 5.4. Financial
risk management in the consolidated financial statements.
18. Subsequent events
Change of President and CEO
On 10 February 2025, Nokia announced its President and CEO,
Pekka Lundmark, will step down effective 31 March 2025. The
Board of Directors has appointed Justin Hotard as the next
President and CEO. He will start in his new role on 1 April 2025.
Mr. Lundmark will stay on as an advisor to Mr. Hotard until the
end of the year to ensure a smooth transition.
Mr. Hotard joins Nokia with more than 25 years’ experience
with global technology companies, driving innovation,
technology leadership and delivering revenue growth.
He currently leads the Data Center & AI Group at Intel.
Prior to this role, he held several leadership roles at large
technology companies, including Hewlett Packard Enterprise
and NCR Corporation.
Infinera acquisition
On 28 February 2025, Nokia Group completed the acquisition
of Infinera Corporation (Infinera), pursuant to the definitive
agreement announced on 27 June 2024. The acquisition was
carried out through a subsidiary of Nokia Corporation while EUR
0.6 billion of the aggregated consideration of EUR 1.7 billion
consisted of the shares of the Parent company in the form of
American Depository Shares (ADSs). The shares transferred
were treasury shares held by the Parent company and totaled
127 434 986 shares. The Parent company recognized the
amount corresponding to the value of shares issued as an
increase in the reserve for invested unrestricted equity. Refer
to Note 6.5. Subsequent events in the consolidated financial
statements for more information on the acquisition.
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Nokia in 2024
The distributable funds on the statement of financial position of the Parent Company on 31
December 2024 were EUR 14 374 million, of which the loss for the financial year 2024 was EUR 99
million. The Board of Directors proposes to the Annual General Meeting 2025 that based on the
statement of financial position to be adopted for the financial year ended on 31 December 2024, no
dividend is distributed by a resolution of the Annual General Meeting for the financial year ended on
31 December 2024. Instead, the Board proposes to the Annual General Meeting to be authorized to
decide, in its discretion, on the distribution of an aggregate maximum of EUR 0.14 per share as
dividend from the retained earnings and/or as assets from the reserve for invested unrestricted
equity. On the date of issuing the financial statements for 2024, the number of the Company’s shares
is 5 605 850 345, and the authorization would equal to an approximate maximum of EUR 785 million.
The proposed total authorization for asset distribution is in line with the Company’s dividend policy.
The financial statements, prepared in accordance with applicable accounting regulations, give a true
and fair view of the assets, liabilities, financial position and profit or loss of both Nokia Oyj and the
Group, as applicable. The board review contains a fair review of the development and results of the
business operations of both Nokia Oyj and the Group as well as a description of the most material
risks and uncertainties and other aspects of Nokia’s condition. The sustainability report included in the
board review has been prepared in accordance with the reporting standards referred to in Chapter 7
of the Finnish Accounting Act and Article 8 of the Taxonomy Regulation.
13 March 2025
Sari Baldauf
Chair
Søren Skou
Timo Ahopelto
Elizabeth Crain
Thomas Dannenfeldt
Lisa Hook
Mike McNamara
Thomas Saueressig
Carla Smits-Nusteling
Kai Öistämö
Pekka Lundmark
President and CEO
The Auditor’s note
Auditor’s Report has been issued today
Helsinki, 13 March 2025
Deloitte Oy
Authorized Public Accountant Firm
Marika Nevalainen
APA
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Signing of the Annual Accounts, the Review of the Board of Directors and the Sustainability Statement 2024
Nokia in 2024
To the Annual General Meeting of Nokia Corporation
Report on the Audit of the Financial
Statements
(Translation of the Finnish Original)
Opinion
We have audited the financial statements of Nokia Corporation
(business identity code 0112038-9) for the year ended 31
December 2024. The financial statements comprise the
consolidated statement of financial position, income
statement, statement of comprehensive income, statement of
changes in shareholders’ equity, statement of cash flows and
notes, including material accounting policy information, as well
as the parent company’s statement of financial position,
income statement, statement of cash flows and notes.
In our opinion
■
the consolidated financial statements give a true and fair
view of the group’s financial position, financial performance
and cash flows in accordance with IFRS Accounting
Standards as adopted by the EU.
■
the financial statements give a true and fair view of the
parent company’s financial performance and financial
position in accordance with the laws and regulations
governing the preparation of financial statements in Finland
and comply with statutory requirements.
Our opinion is consistent with the additional report submitted
to the Audit Committee.
Basis for opinion
We conducted our audit in accordance with good auditing
practice in Finland. Our responsibilities under good auditing
practice are further described in the Auditor’s Responsibilities
for the Audit of the Financial Statements section of our report.
We are independent of the parent company and of the group
companies in accordance with the ethical requirements that are
applicable in Finland and are relevant to our audit, and we have
fulfilled our other ethical responsibilities in accordance with
these requirements.
In our best knowledge and understanding, the non-audit
services that we have provided to the parent company and
group companies are in compliance with laws and regulations
applicable in Finland regarding these services, and we have not
provided any prohibited non-audit services referred to in
Article 5(1) of regulation (EU) 537/2014. The non-audit services
that we have provided have been disclosed in note 3 to the
parent company financial statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Our application of materiality
We define materiality as the magnitude of misstatement in the
financial statements that makes it probable that the economic
decisions of a reasonably knowledgeable person would be
changed or influenced. We use materiality both in planning the
scope of our audit work and in evaluating the results of our
work.
Based on our professional judgement, we determined
materiality for the consolidated financial statements as a whole
as follows:
Materiality in the Group financial statements
Materiality
€150 million
Basis for
determining
materiality
0.8% of consolidated net sales
Rationale
for the
benchmark
applied
Given the importance of net sales to investors and
other users of the financial statements, we have
used it as the primary benchmark.
Key audit matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the financial
statements of the current period. These matters were
addressed in the context of our audit of the financial
statements as a whole and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
We have also addressed the risk of management override of
internal controls. This includes consideration of whether there
was evidence of management bias that represented a risk of
material misstatement due to fraud.
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Auditor’s report
Nokia in 2024
Key audit matter
How our audit addressed the key audit matter
Revenue recognition – Accounting for
significant and complex contracts
Refer to Note 2.1 to the financial statements
The Company recognises revenue in accordance
with International Financial Reporting Standard
15 Revenue from Contracts with Customers.
Certain contracts that the Company enters into
are particularly significant in value and contain
highly complex terms and conditions which
impact revenue recognition. Such complexities
include the determination of the standalone
selling price, combination of contracts
assessments, accounting for contractual
discounts, subsequent modifications and
promised goods or services not yet transferred
at the date of such modification, or other
factors occurring during the contract period
that may impact revenue recognition.
Given the level of complexity and management
judgement involved in the accounting for
significant and complex contracts, performing
audit procedures to evaluate the
reasonableness of these accounting
judgements required a high degree of auditor
judgement, and there was significant audit
effort in obtaining sufficient audit evidence.
This matter is a significant risk of material
misstatement referred to in EU Regulation No
537/2014, point (c) of Article 10(2).
Our audit procedures related to the
determination of the appropriateness of the
accounting for significant and complex contracts
included the following, among others:
■
We assessed management’s accounting
policy in relation to the areas of complexity
identified in all significant and complex
contracts and assessed whether
management’s conclusions, including
determination of standalone selling price,
were in compliance with IFRS 15;
■
We tested the effectiveness of controls
over revenue recognition of significant and
complex contracts, specifically focusing on
controls relating to the areas of accounting
complexity;
■
We utilised data analytics to identify
contracts that were significant in value and
contained complexities to identify the
relevant testing population;
■
We analyzed the terms and conditions of
significant and complex contracts entered
into or modified during the current-period,
to identify all performance obligations and
tested the allocation of the transaction price
to each distinct performance obligation.
Key audit matter
How our audit addressed the key audit matter
Valuation of Goodwill – Mobile Networks Group
of Cash Generating Units
Refer to Note 4.1 to the financial statements
Nokia’s evaluation of goodwill for impairment
involves the comparison of the recoverable
amount of each applicable cash generating unit
(“CGU”), or group of CGUs, to its carrying value
on at least an annual basis, in line with
International Accounting Standard 36
Impairment of Assets. The total carrying
amount of the goodwill balance is EUR 5,736
million as of 31 December 2024, of which EUR
2,346 million is allocated to Mobile Networks
(“MN”). We identified the valuation of MN’s
goodwill as a critical audit matter due to recent
volatility in the market in which MN operates as
well as significant estimates and assumptions
made by management in the value in use
discounted cash flow calculation related to sales
growth and operating margin.
Management’s discounted cash flow model for
the MN group of CGUs consists of cash flow
projections based on financial plans covering a
forecast period of three years, followed by a
seven-year period that reflects management’s
expectations of recovery from the market-
driven decrease in sales and market cyclicality,
leading to a steady state cash flow projection
modelled in the terminal year.
Auditing the significant judgements and
assumptions management made to estimate
the recoverable amount of MN required a high
degree of auditor judgement and increased
audit effort, including the need to involve our
valuation specialists.
Our audit procedures related to the
determination of the appropriateness of
management assumptions in relation to sales
growth and operating margin in the MN
cashflows utilised in impairment testing
included the following, among others:
■
We tested the effectiveness of the
Company’s controls over goodwill
impairment evaluation, specifically
focusing on controls related to the
determination of the recoverable amount,
as well as controls over forecasting;
■
We held discussions with key members of
management to understand how the Board
approved MN forecasts, including key
assumptions around sales growth and
operating margin were derived;
■
We utilised our valuation specialists to
evaluate the appropriateness of the
valuation methodology and mathematical
accuracy of management’s discounted cash
flow model as well as reasonableness of
other underlying assumptions including the
discount rate and terminal growth rate;
■
We challenged sale growth and operating
margin assumptions by comparing to (1)
historical and forecasted peer company
data, (2) historical actual results, and (3)
prior period internal forecasts;
■
We read analyst reports to identify
supporting or contradictory information
in relation to management’s sales
growth and operating margin
assumptions.
We have no key audit matters to report with respect to our audit of the parent company financial
statements. There are no significant risks of material misstatement referred to in EU regulation
No 537/2014, point (c) of Article 10(2) relating to the parent company’s financial statements.
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Responsibilities of the Board of Directors and the
Managing Director for the Financial Statements
The Board of Directors and the Managing Director are
responsible for the preparation of consolidated financial
statements that give a true and fair view in accordance with
IFRS Accounting Standards as adopted by the EU, and of
financial statements that give a true and fair view in
accordance with the laws and regulations governing the
preparation of financial statements in Finland and comply with
statutory requirements. The Board of Directors and the
Managing Director are also responsible for such internal control
as they determine is necessary to enable the preparation of
financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the Board of Directors
and the Managing Director are responsible for assessing the
parent company’s and the group’s ability to continue as a going
concern, disclosing, as applicable, matters relating to going
concern and using the going concern basis of accounting. The
financial statements are prepared using the going concern
basis of accounting unless there is an intention to liquidate the
parent company or the group or cease operations, or there is
no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the
Financial Statements
Our objectives are to obtain reasonable assurance on whether
the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with good auditing
practice will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial
statements.
As part of an audit in accordance with good auditing practice,
we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
■
Identify and assess the risks of material misstatement of
the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud
is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
■
Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the parent
company’s or the group’s internal control.
■
Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by management.
■
Conclude on the appropriateness of the Board of Directors’
and the Managing Director’s use of the going concern basis
of accounting and based on the audit evidence obtained,
whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the parent
company’s or the group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’s report to
the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or
conditions may cause the parent company or the group to
cease to continue as a going concern.
■
Evaluate the overall presentation, structure and content of
the financial statements, including the disclosures, and
whether the financial statements represent the underlying
transactions and events so that the financial statements
give a true and fair view.
■
Plan and perform the group audit to obtain sufficient
appropriate audit evidence regarding the financial
information of the entities or business units within the
group as a basis for forming an opinion on the group
financial statements. We are responsible for the direction,
supervision and review of the audit work performed for
purposes of the group audit. We remain solely responsible
for our audit opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and communicate with
them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such
communication.
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Nokia in 2024
Other reporting requirements
Information on our audit engagement
We were first appointed as auditors by the Annual General
Meeting for the financial year 1.1. - 31.12.2020, and our
appointment represents a total period of uninterrupted
engagement of five (5) years.
Other information
The Board of Directors and the Managing Director are
responsible for the other information. The other information
comprises the report of the Board of Directors and the
information included in the Annual Report but does not include
the financial statements or our auditor’s report thereon.
Our opinion on the financial statements does not cover the
other information.
In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing so,
consider whether the other information is materially
inconsistent with the financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially
misstated. With respect to the report of the Board of Directors,
our responsibility also includes considering whether the report
of the Board of Directors has been prepared in compliance with
the applicable provisions, excluding the sustainability report
information on which there are provisions in Chapter 7 of the
Accounting Act and in the sustainability reporting standards.
In our opinion, the information in the report of the Board of
Directors is consistent with the information in the financial
statements and the report of the Board of Directors has been
prepared in compliance with the applicable provisions. Our
opinion does not cover the sustainability report information on
which there are provisions in Chapter 7 of the Accounting Act
and in the sustainability reporting standards.
If, based on the work we have performed, we conclude that
there is a material misstatement of the other information, we
are required to report that fact. We have nothing to report in
this regard.
Other statements
We support that the financial statements should be adopted.
The proposal by the Board of Directors regarding the use of
the profit shown in the balance sheet and the distribution of
other unrestricted equity is in compliance with the Limited
Liability Companies Act. We support that the Members of the
Board of Directors of the parent company and the Managing
Director should be discharged from liability for the financial
period audited by us.
Helsinki, 13 March 2025
Deloitte Oy
Audit Firm
Marika Nevalainen
Authorised Public Accountant (KHT)
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Independent auditor’s report on the ESEF
financial statements of Nokia Corporation
(translation of the Finnish Original)
To the Board of Directors of Nokia Corporation
We have performed a reasonable assurance engagement on
the financial statements
(549300A0JPRWG1KI7U06-2024-12-31-fi.zip) of Nokia
Corporation (0112038-9) that have been prepared in
accordance with the Commission's regulatory technical
standard for the financial year ended 31.12.2024.
Responsibilities of the Board of Directors and the Managing
Director
The Board of Directors and the Managing Director are
responsible for the preparation of the company’s report of the
Board of Directors and financial statements (the ESEF financial
statements) in such a way that they comply with the
requirements of the Commission's regulatory technical
standard. This responsibility includes:
■
preparing the ESEF financial statements in XHTML format in
accordance with Article 3 of the Commission's regulatory
technical standard
■
tagging the primary financial statements, notes and
company's identification data in the consolidated financial
statements that are included in the ESEF financial
statements with iXBRL tags in accordance with Article 4 of
the Commission's regulatory technical standard and
■
ensuring the consistency between ESEF financial
statements and the audited financial statements.
The Board of Directors and the Managing Director are also
responsible for such internal control as they determine is
necessary to enable the preparation of ESEF financial
statements in accordance with the requirements of the
Commission's regulatory technical standard.
Auditor’s independence and quality management
We are independent of the company in accordance with the
ethical requirements that are applicable in Finland and are
relevant to the engagement we have performed, and we have
fulfilled our other ethical responsibilities in accordance with
these requirements.
The auditor applies International Standard on Quality
Management (ISQM) 1, which requires the firm to design,
implement, and operate a system of quality management
including policies or procedures regarding compliance with
ethical requirements, professional standards, and applicable
legal and regulatory requirements.
Auditor’s responsibilities
Our responsibility is to, in accordance with Chapter 7, Section 8
of the Securities Markets Act, provide assurance on the
financial statements that have been prepared in accordance
with the Commission's regulatory technical standard. We
express an opinion on whether the consolidated financial
statements that are included in the ESEF financial statements
have been tagged, in all material respects, in accordance with
the requirements of Article 4 of the Commission's regulatory
technical standard.
Our responsibility is to indicate in our opinion to what extent
the assurance has been provided. We conducted a reasonable
assurance engagement in accordance with International
Standard on Assurance Engagements (ISAE) 3000.
The engagement includes procedures to obtain evidence on:
■
whether the primary financial statements in the
consolidated financial statements that are included in the
ESEF financial statements have been tagged, in all material
respects, with iXBRL tags in accordance with the
requirements of Article 4 of the Commission's regulatory
technical standard and
■
whether the notes and company's identification data in the
consolidated financial statements that are included in the
ESEF financial statements have been tagged, in all material
respects, with iXBRL tags in accordance with the
requirements of Article 4 of the Commission's regulatory
technical standard and
■
whether there is consistency between the ESEF financial
statements and the audited financial statements.
The nature timing and extent of the selected procedures
depend on the auditor’s judgment. This includes an assessment
of the risk of a material deviation due to fraud or error from
the requirements of the Commission's regulatory technical
standard.
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Opinion
Our opinion pursuant to Chapter 7, Section 8 of the Securities
Markets Act is that the primary financial statements, notes and
company's identification data in the consolidated financial
statements that are included in the ESEF financial statements
of Nokia Corporation (549300A0JPRWG1KI7U06-2024-12-31-
fi.zip) for the financial year ended 31.12.2024 have been
tagged, in all material respects, in accordance with the
requirements of the Commission's regulatory technical
standard.
Our audit opinion on the audit of the consolidated financial
statements of Nokia Corporation for the financial year ended
31.12.2024 has been expressed in our auditor’s report dated
13.3.2025. With this report we do not express an opinion on
the audit of the consolidated financial statements nor express
another assurance conclusion.
Helsinki, 13 March 2025
Deloitte Oy
Audit firm
Marika Nevalainen
Authorised Public Accountant (KHT)
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Auditor’s ESEF assurance report
Nokia in 2024
Assurance report on the Sustainability
Statement
To the Annual General Meeting of Nokia Oyj
(Translation of the Finnish Original)
Assurance of the Sustainability Statement
We have performed a limited assurance engagement on the
group sustainability statement of Nokia Oyj (0112038-9) that
is referred to in Chapter 7 of the Accounting Act and that is
included in the report of the Board of Directors for the financial
year 1.1.–31.12.2024.
Opinion
Based on the procedures we have performed and the evidence
we have obtained, nothing has come to our attention that
causes us to believe that the group sustainability statement
does not comply, in all material respects, with
■
the requirements laid down in Chapter 7 of the Accounting
Act and the sustainability reporting standards (ESRS);
■
the requirements laid down in Article 8 of the Regulation
(EU) 2020/852 of the European Parliament and of the
Council on the establishment of a framework to facilitate
sustainable investment, and amending Regulation (EU)
2019/2088 (EU Taxonomy).
Point 1 above also contains the process in which Nokia Oyj has
identified the information for reporting in accordance with
the sustainability reporting standards (double materiality
assessment) and the tagging of information as referred to
in Chapter 7, Section 22 of the Accounting Act.
Our opinion does not cover the tagging of the group
sustainability statement with digital XBRL sustainability tags
in accordance with Chapter 7, Section 22, Subsection 1(2),
of the Accounting Act, because sustainability reporting
companies have not had the possibility to comply with that
provision in the absence of the ESEF regulation or other
European Union legislation.
Basis for Opinion
We performed the assurance of the group sustainability
statement as a limited assurance engagement in compliance
with good assurance practice in Finland and with the
International Standard on Assurance Engagements (ISAE) 3000
(Revised) Assurance Engagements Other than Audits or Reviews
of Historical Financial Information.
Our responsibilities under this standard are further described
in the Responsibilities of the Authorised Sustainability Auditor
section of our report.
We believe that the evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Other Matter
We draw attention to the fact that the group sustainability
statement of Nokia Oyj that is referred to in Chapter 7 of the
Accounting Act has been prepared and assurance has been
provided for it for the first time for the financial year 1.1.–
31.12.2024.
Our opinion does not cover the comparative information that
has been presented in the group sustainability statement.
Our opinion is not modified in respect of this matter.
Authorised group sustainability auditor's
Independence and Quality Management
We are independent of the parent company and of the group
companies in accordance with the ethical requirements that are
applicable in Finland and are relevant to our engagement, and
we have fulfilled our other ethical responsibilities in accordance
with these requirements.
The authorised group sustainability auditor applies
International Standard on Quality Management ISQM 1, which
requires the authorised sustainability audit firm to design,
implement and operate a system of quality management
including policies or procedures regarding compliance with
ethical requirements, professional standards and applicable
legal and regulatory requirements.
Responsibilities of the Board of Directors and the
Managing Director
The Board of Directors and the Managing Director of Nokia Oyj
are responsible for:
■
the group sustainability statement and for its preparation
and presentation in accordance with the provisions of
Chapter 7 of the Accounting Act, including the process that
has been defined in the sustainability reporting standards
and in which the information for reporting in accordance
with the sustainability reporting standards has been
identified as well as the tagging of information as referred
to in Chapter 7, Section 22 of the Accounting Act and
■
the compliance of the group sustainability statement with
the requirements laid down in Article 8 of the Regulation
(EU) 2020/852 of the European Parliament and of the
Council on the establishment of a framework to facilitate
sustainable investment, and amending Regulation (EU)
2019/2088;
■
such internal control as the Board of Directors and the
Managing Director determine is necessary to enable the
preparation of a group sustainability statement that is free
from material misstatement, whether due to fraud or error.
Inherent Limitations in the Preparation of a
Sustainability Statement
In preparing the group sustainability statement, the company
is required to conduct a materiality assessment to identify
relevant matters to be reported. This process involves
significant management judgement and choices. Due to the
nature and characteristics of sustainability reporting, this type
of information involves estimates and assumptions, as well as
measurement and evaluation uncertainties.
In reporting forward-looking information, management is
required to prepare the forward-looking information on the
basis of disclosed assumptions about events that may occur in
the future and possible future actions by the Group. The actual
outcome is likely to be different since anticipated events
frequently do not occur as expected.
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Assurance report on the Sustainability Statement
Nokia in 2024
Responsibilities of the Authorised Group
Sustainability Auditor
Our responsibility is to perform an assurance engagement
to obtain limited assurance about whether the group
sustainability statement is free from material misstatement,
whether due to fraud or error, and to issue a limited assurance
report that includes our opinion. Misstatements can arise from
fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence
the decisions of users taken on the basis of the group
sustainability statement.
Compliance with the International Standard on Assurance
Engagements (ISAE) 3000 (Revised) requires that we exercise
professional judgment and maintain professional skepticism
throughout the engagement. We also:
■
Identify and assess the risks of material misstatement of
the group sustainability statement, whether due to fraud
or error, and obtain an understanding of internal control
relevant to the engagement in order to design assurance
procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the
effectiveness of the parent company’s or the group’s
internal control.
■
Design and perform assurance procedures responsive
to those risks to obtain evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Description of the Procedures That Have Been Performed
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for,
a reasonable assurance engagement. The nature, timing and extent of assurance procedures selected depend on
professional judgment, including the assessment of risks of material misstatement, whether due to fraud or error.
Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance
that would have been obtained had a reasonable assurance engagement been performed.
Our procedures included for ex. the following:
■
Performed inquiries of the company’s management and personnel responsible for collecting and reporting the
information contained in the group sustainability statement at the group level and for subsidiaries, as well as at the
different levels and business areas of the organization.
■
Obtained an understanding of the company’s sustainability reporting process, internal controls, and information systems
related to the sustainability reporting process through inquiries.
■
Reviewed the supporting documentation and records prepared by the company, where applicable, and assessed whether
they support the information included in the group sustainability statement.
■
Performed site visits at selected locations.
■
With respect to the double materiality assessment process, we evaluated the implementation of the process conducted
by the company in relation to the requirements of the ESRS standards and assessed whether the disclosed information on
the double materiality assessment is in accordance with the ESRS standards.
■
Evaluated whether the group sustainability statement meets the requirements of the ESRS standards, in all material
aspects, regarding material sustainability matters to a significant extent.
■
With respect to the EU taxonomy information, we obtained an understanding of the process by which the company has
identified taxonomy-eligible and taxonomy-aligned economic activities and assessed the compliance of the related
disclosed information with the regulations.
Helsinki, 13 March 2025
Deloitte Oy
Authorised Sustainability Audit Firm
Marika Nevalainen
Authorised Sustainability Auditor (KRT)
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Assurance report on the Sustainability Statement continued
Nokia in 2024
Other
information
Introduction and use of certain terms
292
Forward-looking statements
293
Glossary
294
Investor information
297
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Nokia in 2024
Use of certain terms
Nokia Corporation (“Parent Company”) is a public limited
liability company incorporated under the laws of the Republic
of Finland and registered to the Finnish Trade Register since
1896. In this report, any reference to “we,” “us,” “Nokia Group,”
“the Group,” “the company” or “Nokia” means Nokia
Corporation and its consolidated subsidiaries and generally
Nokia’s continuing operations, except where we separately
specify that the term means Nokia Corporation or a particular
subsidiary or business segment only or our discontinued
operations. References to “our shares,” matters relating to our
shares or matters of corporate governance refer to the shares
and corporate governance of Nokia Corporation.
Nokia Corporation has published its consolidated financial
statements in euro for periods beginning on or after 1 January
1999. In this report, references to “EUR,” “euro” or “€” are to
the common currency of the European Economic and Monetary
Union, references to “dollars,” “US dollars,” “USD” or “$” are
to the currency of the United States, references to “Chinese
yuan” or “CNY” are to the official currency of the People’s
Republic of China, references to “INR” or “Indian rupee” are to
the official currency of the Republic of India and references to
“GBP” or “British pound” are to the official currency of the
United Kingdom. Additional terms are defined in the “Glossary.”
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Introduction and use of certain terms
Nokia in 2024
Forward-looking statements
Certain statements contained in this report constitute
"forward-looking statements." Forward-looking statements
provide Nokia's current expectations of future events and
trends based on certain assumptions and include any
statement that does not directly relate to any current or
historical fact. The words “believe,” “expect,” “expectations,”
“anticipate,” “foresee,” “see,” “target,” “estimate,” “designed,”
“aim,” “plan,” “intend,” “influence,” “assumption,” “focus,”
“continue,” “project,” “should," "is to," "will,” "strive," "may,”
"could,” “forecast,” or similar expressions as they relate to us
or our management are intended to identify these forward-
looking statements, as well as statements regarding:
a) business strategies, projects, market expansion, growth
management, and future industry trends and megatrends
and our plans to address them;
b) future performance of our businesses and any future
distributions and dividends;
c) expectations and targets regarding financial performance,
results, operating expenses, cash flows, taxes, currency
exchange rates, hedging, cost savings and competitiveness,
as well as results of operations including targeted synergies
and those related to market share, prices, net sales, income
and margins;
d) expectations, plans, timelines or benefits related to our
ongoing transactions, investments and changes in our
organizational and operational structure;
e) market developments in our current and future markets
and their seasonality and cyclicality, including the
communications service provider market, as well as general
economic conditions, future regulatory developments and
the expected impact, timing and duration of potential global
pandemics and geopolitical conflicts on our businesses, our
supply chain, our customers’ businesses and the general
market and economic conditions;
f) our position in the market, including product portfolio
and geographical reach, and our ability to use the same
to develop the relevant business or market and maintain
our order pipeline over time;
g) any future collaboration or business collaboration
agreements or patent license agreements or arbitration
awards, including income from any collaboration or
partnership, agreement or award;
h) timing of the development and delivery of our products
and services;
i)
the outcome of pending and threatened litigation,
arbitration, disputes, regulatory proceedings or
investigations by authorities;
j)
restructurings, investments, capital structure optimization
efforts, divestments and our ability to achieve the financial
and operational targets set in connection with any such
restructurings, investments, and capital structure
optimization efforts including our ongoing cost savings
program;
k) future capital expenditures, temporary incremental
expenditures or other R&D expenditures to develop or
rollout new products; and
l)
sustainability and corporate responsibility.
These statements are based on management’s best
assumptions and beliefs in light of the information currently
available to it and are subject to a number of risks and
uncertainties, many of which are beyond our control, which
could cause actual results to differ materially from such
statements. These statements are only predictions based
upon our current expectations and views of future events and
developments and are subject to risks and uncertainties that
are difficult to predict because they relate to events and
depend on circumstances that will occur in the future. Risks
and uncertainties that could affect these statements include
but are not limited to the risk factors specified under the
section “Risk factors” of this report and in our other filings or
documents furnished with the authorities. Other unknown or
unpredictable factors or underlying assumptions subsequently
proven to be incorrect could cause actual results to differ
materially from those in the forward-looking statements.
We do not undertake any obligation to publicly update or
revise forward-looking statements, whether as a result of new
information, future events or otherwise, except to the extent
legally required.
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Forward-looking statements
Nokia in 2024
Glossary
2G (Second Generation Mobile Communications): Also known
as GSM (Global System for Mobile Communications): A digital
system for mobile communications that is based on a widely-
accepted standard and typically operates in the 900 MHz,
1800 MHz and 1900 MHz frequency bands.
3G (Third Generation Mobile Communications): The third
generation of mobile communications standards designed for
carrying both voice and data generally using WCDMA or close
variants. See also WCDMA.
3GPP (The Third Generation Partnership Project):
A consortium comprising several standards organizations which
develop protocols for mobile telecommunications. The initial
goal was to develop a global technical specification for a 3G
mobile phone system. Since then, the operations have been
extended and today the main focus is on 5G networks.
4G (Fourth Generation Mobile Communications): The fourth
generation of mobile communications standards based on LTE,
offering IP data connections only and providing true broadband
internet access for mobile devices. See also LTE.
5G (Fifth Generation Mobile Communications): The next
major phase of mobile telecommunications standards. 5G is a
complete redesign of network architecture with the flexibility
and agility to support upcoming service opportunities. It
delivers higher speeds, higher capacity, extremely low latency
and greater reliability.
6G (Sixth Generation Mobile Communications): The cellular
industry introduces a new generation about every ten years.
The next generation of technology is expected to be
introduced by 2030 and is generally referred to as 6G.
Access network: A telecommunications network between
a local exchange and the subscriber station.
AirScale Radio Access: A 5G-ready complete radio access
generation that helps operators address the increasing
demands of today and tomorrow. The solution comprises:
Nokia AirScale Base Station with multiband radio frequency
elements and system modules; Nokia AirScale Active Antennas;
Cloud RAN with Nokia AirScale Cloud Base Station Server and
the cloud-based AirScale RNC (Radio Network Controller) for
3G; Nokia AirScale Wi-Fi; common software; and services which
use intelligent analytics and extreme automation to maximize
the performance of hybrid networks.
Alcatel-Lucent: Alcatel-Lucent Group, that has been part of
the Nokia Group since 2016.
Artificial Intelligence (AI): Autonomous and adaptive
intelligence of machines, where machines have the ability to
perform tasks in complex environments without constant
guidance by a user and have the ability to improve
performance by learning from experience.
Bandwidth: The width of a communication channel, which
affects transmission speeds over that channel.
Base station: A network element in a mobile network
responsible for radio transmission and reception to or from
the mobile station.
Broadband: The delivery of higher bandwidth by using
transmission channels capable of supporting data rates
greater than the primary rate of 9.6 Kbps.
Churn: A measure of the number of customers or subscribers
who leave their service provider, e.g., a mobile operator,
during a given time period.
Cloud: Cloud computing is a model for enabling ubiquitous,
convenient, on-demand network access to a shared pool of
configurable computing resources (e.g., networks, servers,
storage, applications and services) that can be rapidly
provisioned and released with minimal management effort.
Cloud and Network Services: Our Cloud and Network Services
business group enables CSPs and enterprises to deploy
and monetize 5G, cloud-native software and as-a-Service
delivery models.
Cloud RAN: Cloud RAN refers to all or some of the baseband
functions being run on a commercial off-the-shelf (COTS)
computing platform rather than purpose-built hardware.
Convergence: The coming together of two or more disparate
disciplines or technologies. Convergence types are, for
example, IP convergence, fixed-mobile convergence and
device convergence.
Core network: A combination of exchanges and the basic
transmission equipment that together form the basis for
network services.
CSPs: Communications service providers. One of Nokia’s
customer segments.
Digital: A signaling technique in which a signal is encoded into
digits for transmission.
Discontinued operations: Submarine Networks business,
which was previously reported as part of Network Infrastructure
operating segment, was sold in 2024 and is presented as a
discontinued operation.
Drones-as-a-Service (DaaS): A service model where drones are
provided on-demand or via subscription, including all necessary
components (e.g., drones, docking stations, control stations
and software). The model is used for tasks like emergency
response, infrastructure inspection, and surveillance, with
drones operated remotely or autonomously, including Beyond
Visual Line of Sight (BVLOS) operations.
Ecosystem: An industry term to describe the increasingly
large communities of mutually beneficial partnerships that
participants such as hardware manufacturers, software
providers, developers, publishers, entertainment providers,
advertisers and ecommerce specialists form in order to bring
their offerings to market. At the heart of the major ecosystems
in the mobile devices and related services industry is the
operating system and the development platform upon which
services are built.
Enterprise verticals: One of Nokia’s customer segments. An
enterprise vertical represents a grouping of companies by an
industry (like energy or transportation) that offers products
and services that meet specific needs of that industry. Within
the enterprise verticals segments, we primarily focus on
transportation, energy, manufacturing, logistics and the
public sector.
ETSI (European Telecommunications Standards Institute):
Standards produced by the ETSI contain technical
specifications laying down the characteristics required for a
telecommunications product.
Event-Driven Automation platform (EDA): A modern
infrastructure automation platform that combines speed
with reliability and simplicity. It makes data center network
automation more trustable and easier to use, from small edge
clouds to the largest AI fabrics.
Fixed Wireless Access (FWA): Uses wireless networks to
connect fixed locations such as homes and businesses with
broadband services.
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Glossary
Nokia in 2024
Future X: A network architecture – a massively distributed,
cognitive, continuously adaptive, learning and optimizing
network connecting humans, senses, things, systems,
infrastructure and processes.
Greenfield networks: A new network built without any
legacy infrastructure, systems, or constraints from previous
deployments. Without the need for backward compatibility,
it allows for the adoption of the latest technologies
and architectures.
GSM (Global System for Mobile Communications): A digital
system for mobile communications that is based on a widely
accepted standard and typically operates in the 900 MHz,
1800 MHz and 1900 MHz frequency bands. See also 2G.
Hexa-X: European Commission’s flagship 6G initiative for
research into the next generation of wireless networks. The
initiative began in January 2021 with Nokia as project lead,
working closely with a strong consortium of European partners.
Hyperscalers: One of Nokia’s customer segments. Hyperscaler
refers to companies like Alphabet (Google), Amazon (Amazon
Web Services), Microsoft and Meta Platforms (Facebook) that
provide cloud solutions at a global scale leveraging massive
connected data centers.
Industry 4.0 (the fourth industrial revolution): Enables
enterprises, governments and public sector agencies to use
innovative digital technologies, smart automation and
advanced analytics to transform their operating processes.
This blending of technologies creates a convergence of the
physical and digital worlds, enabling an era of massive industry
improvements and positive impacts for societies.
Industry 5.0 (the fifth industrial revolution): Enables
enterprises, governments, and public sector agencies to
modernize their operational processes through the integration
of digital technologies, smart automation, and human-machine
collaboration. This blending of technologies creates a
convergence of human creativity, decision-making, and
machine efficiency, enabling an era of highly personalized and
sustainable manufacturing with a focus on human-centered
improvements and positive impacts for societies.
Infinera: Infinera Corporation, a global supplier of innovative
open optical networking solutions and advanced optical
semiconductors. In 2024, Nokia announced its plans to acquire
the company and the acquisition of Infinera was closed in
February 2025.
Internet of Things (IoT): All things such as cars, the clothes
we wear, household appliances and machines in factories
connected to the internet and able to automatically learn
and organize themselves.
IP (Internet Protocol): A network layer protocol that offers a
connectionless internet work service and forms part of the
(Transmission Control Protocol) TCP/IP protocol.
IP (Intellectual Property): Intellectual property results from
original creative thought, covering items such as patents,
copyright material and trademarks, as well as business models
and plans.
IPR (Intellectual Property Rights): Legal rights protecting the
economic exploitation of intellectual property, a generic term
used to describe products of human intellect, for example
patents, that have an economic value.
IPR licensing: Generally, an agreement or an arrangement
where a company allows another company to use its
intellectual property (such as patents, trademarks or
copyrights) under certain terms.
IVAS codec (Immersive Voice and Audio Services Codec):
An extension of the EVS codec that enables spatial audio in
mobile communication. It features advanced technologies, such
as the metadata-assisted spatial audio (MASA) format, allowing
smartphones and other devices with multiple microphones to
capture spatial audio without specialized equipment. It also
supports head-tracking, enhancing the spatial audio experience
based on the listener's movement.
LTE (Long-Term Evolution): 3GPP radio technology evolution
architecture and a standard for wireless communication of
high-speed data. Also referred to as 4G.
Massive MIMO (Multiple Input Multiple Output) radios:
Advanced technology, which extends the MIMO concept by
using a large array of transmit and receive antennas. Nokia
provides an extensive portfolio of Massive MIMO radios
to deliver high-performance 5G with optimized capacity,
coverage and energy efficiency.
Mission-critical networks/communications: One of the key
elements of 5G. Mission-critical communications meets the
needs of emergency responders such as emergency operations
centers, fire departments, emergency vehicles, police, and
search and rescue services, replacing traditional radio with new
communications capabilities available to smartphone users.
Mobile broadband: Refers to high-speed wireless internet
connections and services designed to be used from multiple
locations.
Mobile Networks: Our Mobile Networks business group offers
products and services for radio access networks covering
technologies from 2G to 5G, and microwave radio links for
transport networks.
Network Infrastructure: Our Network Infrastructure
business group provides fiber, copper, fixed wireless access
technologies, IP routing, data center, subsea and terrestrial
optical networks – along with related services – to customers
including communications service providers, webscales
(including hyperscalers), digital industries and governments.
Nokia Bell Labs: Our research arm engaged in discovering and
developing the technological shifts needed for the next phase
of human existence as well as exploring and solving complex
problems to radically redefine networks.
Nokia Technologies: Our Nokia Technologies business group
is responsible for managing Nokia’s patent portfolio and
monetizing Nokia’s intellectual property, including patents,
technologies and the Nokia brand.
Operating System (OS): Software that controls the basic
operation of a computer or a mobile device, such as managing
the processor and memory. The term is also often used to
refer more generally to the software within a device, for
example, the user interface.
O-RAN: The term O-RAN refers to interfaces and architecture
elements as specified by the O-RAN alliance. O-RAN Alliance is a
specification group defining next-generation RAN infrastructures,
empowered by principles of intelligence and openness.
Platform: Software platform is a term used to refer to an
operating system or programming environment, or a
combination of the two.
PON (Passive Optical Network): A fiber access architecture in
which unpowered fiber optic splitters are used to enable a
single optical fiber to serve multiple endpoints without having
to provide individual fibers between the hub and customer.
Private wireless network: Private wireless is a standalone
network focused on industrial operational assets and users.
A private wireless network provides broadband connectivity,
similar to a public wireless network, but is owned and controlled
by the organization that built or purchased it.
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Glossary continued
Nokia in 2024
RAN (Radio Access Network): A mobile telecommunications
system consisting of radio base stations and transmission
equipment.
SEP (Standard-Essential Patent): Generally, patents needed to
produce products which work on a standard which companies
declare as essential and agree to license on Fair, Reasonable
and Non-Discriminatory (FRAND) terms. Can also be referred to
as essential patent.
Standalone (SA): Network architecture that allows independent
operation of a 5G service without interaction with an existing
4G core and 4G radio network.
Submarine Networks: In 2024, Nokia sold its wholly owned
subsidiary, Alcatel Submarine Networks (ASN), a global
submarine communication networks leader, to the French
State. The business unit was previously reported as part of
Nokia’s Network Infrastructure business groups segment and is
now presented as a discontinued operation.
Technology licensing: Generally, refers to an agreement or
arrangement where under certain terms a company provides
another company with its technology and possibly know-how,
whether protected by intellectual property or not, for use in
products or services offered by the other company.
Telco cloud: Applying cloud computing, SDN and NFV principles
in telecommunications environment, for example separating
application software from underlying hardware with
automated, programmable interfaces while still retaining
telecommunications requirements such as high availability
and low latency.
Transmission: The action of conveying signals from one point
to one or more other points.
Virtual Reality (VR): The simulation of a three-dimensional
image or environment that can be interacted with in a
seemingly real or physical way by a person using special
electronic equipment, such as a helmet with a screen inside
or gloves fitted with sensors.
WAN (Wide Area Network): A geographically distributed private
telecommunications network that interconnects multiple local
area networks.
WCDMA (Wideband Code Division Multiple Access): A third-
generation mobile wireless technology that offers high data
speeds to mobile and portable wireless devices. Also referred
to as 3G.
Webscale companies: Companies which are investing in cloud
technology and network infrastructure on an increasing scale
to fulfill their needs for massive, mission-critical networks.
XGS-PON (10Gbps Symmetrical Passive Optical Network):
A high-speed optical network technology that enables both
upstream and downstream gigabit and multigigabit services.
Its adoption is accelerating, helping operators improve
competitiveness, revenue, and network efficiency, while
meeting the growing demand for bandwidth from video,
online gaming, and emerging applications like virtual reality.
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Investor information
Information on the internet
www.nokia.com
Available on the internet: financial reports, information on members of the Group Leadership
Team, other investor-related materials and information on events, and press releases as well as
environmental and social information, Code of Conduct, Corporate Governance Statement and
Remuneration Statement.
Investor Relations contacts
investor.relations@nokia.com
Annual General Meeting
Date:
29 April 2025
Place:
Helsinki, Finland
Dividend
The Board proposes to the Annual General Meeting 2025 to be authorized to decide, in its
discretion, on the distribution of an aggregate maximum of EUR 0.14 per share as dividend from
the retained earnings and/or as assets from the reserve for invested unrestricted equity.
Financial reporting
Our interim reports in 2025 are planned to be published on 24 April 2025, 24 July 2025 and
23 October 2025. The full-year 2025 results are planned to be published in January 2026.
Information published in 2024
All our global press releases and statements published in 2024 are available on the internet at
www.nokia.com/en_int/news/releases.
Stock exchanges
The Nokia Corporation share is quoted on the following stock exchanges:
Symbol
Trading currency
Nasdaq Helsinki (since 1915)
NOKIA
EUR
New York Stock Exchange (since 1994)
NOK
USD
Euronext Paris (since 2015)
NOKIA
EUR
Contact information
Nokia Head Office
Karakaari 7
FI-02610 Espoo
Finland
Tel. +358 (0) 10 44 88 000
Fax +358 (0) 10 44 81 002
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Nokia in 2024
Copyright © 2025 Nokia Corporation.
All rights reserved. Nokia is a registered
trademark of Nokia Corporation.
www.nokia.com