Sustainability Reports

Nokia Siemens Networks
Sustainability
report
2011
Contents
About this report
CEO foreword
Who we are and what we do
Managing sustainability
Connectivity 7
Environmentalimpacts ofourproducts andservices
Environmental impact of operations
15
Ethics and compliance
20
Human rights
23
Tell us what you think

We value our stakeholders
views and we would like your
feedback on this report and our
sustainability performance and
activities. Please contact us at
[email protected].
Suppliers 26
Health and safety
32
Employees 36
Community 43
KPI summary 2011
45
Progress against targets summary
46
Independent assurance statement
49
About this report

This is our fifth annual sustainability
report. It focuses on our performance
on the ethical, social and environmental
issues identified as most significant
or material to our business and
our stakeholders (see Managing
Sustainability, page 5).
The report covers performance data
and activities from all Nokia Siemens
Networks operations globally for the
2011 calendar year. Unless otherwise
stated, data includes former Motorola
operations that became part of Nokia
Siemens Networks following our
acquisition of Motorolas wireless
network business in April 2011.
For the first time the report has been
assured to give users of the report
2
Sustainability report 2011
confidence that not only the data is

accurate but also that the content
reflects the most important issues
Nokia Siemens Networks has to
manage. We commissioned Two
Tomorrows to undertake independent
assurance using AccountAbilitys
AA1000 Assurance Standard (2008)
which evaluates adherence to the
principles of:
Inclusivity involving stakeholders
in the development of the companys
response to sustainability issues
Materiality the relevance and
significance of an issue to the
company and its stakeholders
Responsiveness communicating
and responding to issues raised by
stakeholders.
Selected data indicators are also

included in this assurance. These are
marked with a *. See the Assurance
Statement from Two Tomorrows on
page 49.
We continue to report a series of
key performance indicators that were
identified in 2010 through an analysis
of global sustainability reporting
guidelines and customer requirements.
An index of our conformance with
the Global Reporting Initiative
guidelines and reporting against the
Global Compact principles, together
with more information about our
sustainability strategy, approach
and policies is available online at
www.nsn.com/sustainability.
CEO foreword
Highlights
Rajeev Suri
Chief Executive Officer
2011 was a challenging year for

Nokia Siemens Networks, but we
made important progress towards our
goal of achieving long-term
competitiveness and profitability. We
welcomed employees from Motorola
following the acquisition of its wireless
network infrastructure business and
refocused our strategy on mobile
broadband as the first important step
in our companys restructuring process.
These developments focus the
company on growth in our target
markets and they mean that we will
be able to succeed in the tough
economic circumstances we face.
This is the foundation of being a
sustainable company.
The restructuring programme,
which I announced in November 2011
is based on difficult choices. While
we will continue to invest heavily in
our business and its development,
we will also see a significant reduction
in headcount during 2012 and 2013.
We plan to do only those things that
are necessary to safeguard the future
of Nokia Siemens Networks and to
secure the employment of tens of
thousands of people.
Uncertainty about the future of the
company made 2011 a challenging
year for employees. Now we have
greater clarity about the future. I am
pleased that our surveys show the vast
majority of employees understand the
need for action and want to actively
contribute to the changes.
70% engagement score in our annual employee survey

OHSAS 18001 safety certification achieved in four
more countries, bringing the total to 14
90% of employees completed ethical business conduct
training
5,647 employees trained on anti-corruption in
face-to-face training sessions
76 suppliers trained on sustainability through
workshops in five high-risk countries
Implemented a human rights risk assessment and due
diligence process in our sales process globally
Initiated a joint industry dialog to develop common
principles on privacy and freedom of expression
Made energy efficiency savings of 9,450 MWh
Supported low-carbon energy with our award-winning
software-based services, including the first off-grid
base station in Germany with zero operating emissions
Focus is one of the key themes of

our restructuring programme and this
also applies to sustainability. We are
focusing on effective systems and
processes that ensure compliance and
help us meet stakeholder expectations
in key areas. We remain as committed
as ever to sustainability, even if we
must narrow our scope of activities
during these challenging times.
Our commitment to the values
embodied in the UN Global Compact is
demonstrated by our continued action
on issues such as human rights and
anti-corruption, that are highlighted in
this report.
We made good progress in 2011 in key
areas that include improving supplier
capability and managing the
environmental impacts of our
operations. NSN became the first
telecoms company to introduce a
human rights risk assessment and due
diligence system as part of our sales
process, and we jointly initiated a
dialogue with others in our industry to
develop common principles on privacy
and freedom of expression.
We maintained our strong focus on

improving safety in our Global Services
business, including extensive training
and audits of contractors. Safety will
remain a high priority in 2012.
We remain committed to transparency
and in this report we outline both our
achievements and key challenges.
For the first time the report has been
compiled according to the international
AA1000 AS (2008) standard, ensuring
that the content responds to
stakeholders needs.
This has been a transformational year
for our sustainability strategy as well as
our corporate strategy, and 2012 will
be a year of fundamental change for
Nokia Siemens Networks and for our
industry as a whole. I look forward to
positive developments for both in 2012
and beyond.
Rajeev Suri, Chief Executive Officer,

Who we are and what we do

Nokia Siemens Networks is a leading specialist in mobile broadband, providing mobile
networks and the intelligence and services to maximize their value. We are one of the
largest telecommunications hardware, software and professional services companies
in the world, operating in 150 countries with headquarters in Finland.
Our values

Focus on the customer

Communicate openly
Win together
Inspire
Innovate
Our mission is to help operators to

build more valuable relationships by
improving efficiency and customer
experience. Our customers are
telecommunications network operators
and service providers. A very small part
of our business (approximately 0.4%
of sales) is to military and civil defence
organizations in selected countries
where we supply communications
equipment for administrative purposes.
During 2011 (the period covered by
this report), we operated in three core
areas:
Network Systems: developing and
producing network infrastructure
products, including our Flexi base
stations and broadband access
equipment
Global Services: implementing
networks, and managing networks
on behalf of customers
Business Solutions: helping
customers provide services to
improve the end user experience.
In 2011, we announced a two-year

restructuring process that will reshape
the company to improve long-term
competitiveness and profitability. It will
put mobile broadband and services at
the heart of what we do. Our goal
is to provide the worlds most efficient
mobile networks along with the
intelligence to maximize their value
and the services to make this work
seamlessly.
The mobile broadband and services
market is valued at almost 70 billion
and we hold a strong second position.
We will compete in this market by
building on our existing success in
mobile broadband and customer
experience management. Our services
organization will continue to provide
efficient global delivery. Quality and
innovation will remain priorities and we
will maintain high levels of investment
in research and development.
The restructuring will result in some

business areas being divested or
managed for value and a significant
reduction in our global workforce
(see page 36 for more workforce
information). The planned reductions
will align the workforce with our new
strategy and improve productivity and
efficiency. We expect to streamline the
organizational structure, consolidate
sites and activities, and simplify
processes.
These plans follow our acquisition of
certain assets of Motorolas wireless
network infrastructure business in
April 2011 which reinforced our position
in the market and boosted our research
and development capabilities.
Our Code of Conduct continues to
govern everything we do and our
commitment to corporate responsibility
that the Code embodies is unwavering.
See Managing Sustainability
(page 5) for more details.
Managing sustainability
Our business is changing and we have revised the way we govern and manage
sustainability to ensure an effective approach to environmental and social matters.
Governance
The Executive Board reviews

sustainability performance at least
once a year, and provides guidance.
The Head of Marketing and Corporate
Affairs is the board member directly
responsible for sustainability.
Simplification also means we decided
not to set up an external advisory
network for stakeholder engagement.
Instead, we will engage directly with
relevant stakeholders on critical issues.
For instance, in 2011 we focused on
working with stakeholders to find a
common approach to human rights
in our sector. Working with a number
of telecommunications operators,
we initiated an industry wide dialog to
develop common principles and tools
for respecting freedom of expression
and privacy (see page 23).
Management
In 2011 we developed a new
management structure for sustainability
to improve the efficiency and
communication of existing networks
and working groups for environment,
health and safety and ethics.
The emphasis is on operating effective
management systems which support
the business, meet regulatory
requirements and stakeholder needs.
Two cross-functional forums
co-ordinate sustainability activities
Environment
Health & Safety
Corporate social investment
Reporting and communication
Stakeholder engagement
ICT and development
Cross-functional network:
Sustainable operations
Executive board
Cross-functional network:
Sustainable products and services
In 2011 we simplified our approach

to sustainability governance. Instead
of a separate Corporate Responsibility
Steering Group, the Executive Board
now acts as a Steering Group for
sustainability matters. Board members
are responsible for leading the
business through the transformation
announced in November 2011
(see page 4 [Who We Are &
What We Do]) and their continued
senior oversight confirms the role
of sustainability in our company.
Working groups as needed
across the company one for

Sustainable Products and Services
and another for Sustainable
Operations. They bring together
sustainability experts, business units
and functions such as HR and IT from
each region to develop and implement
our sustainability strategy. Through
these forums, we will listen and
respond to the needs of our
stakeholders, define sustainability
goals and key performance indicators

and continue to implement global
management systems.
In 2012, the two forums will be
supported by working groups formed
of sustainability experts from within
the business.
Case study
Employee network champions sustainability
A network of 76 Culture Champions, established in 2011, spreads
knowledge and enthusiasm for Nokia Siemens Networks values,
ethics and compliance objectives and sustainability themes.
Based in our regional offices, Culture Champions are local role
models who foster a sense of pride in the company values and
provide information on company culture issues including
environmental and ethical topics. Employees volunteered to take on
the role in addition to their existing jobs and were appointed in
September 2011. The Culture Champions participated in a program
of online training sessions. They can interact with each other online
and build their own knowledge of sustainability, the Code of Conduct
and the importance of collaboration with colleagues. They will
stimulate sustainability thinking and behavior change among
colleagues locally, promoting employee wellbeing and knowledge
sharing. They will also help colleagues understand the companys
Code of Conduct and promote compliance.
Stakeholder engagement
We continued to be particularly active

on human rights, meeting regularly
with NGOs and government
representatives in several countries.
We initiated an industry wide dialog
on human rights with other companies
in our sector (see page 23).
Formal dialog with employees includes
an annual employee survey, ethics
training and communication campaigns
on specific themes such as career
development. Informal employee
engagement activities include
face-to-face town hall sessions
with Executive Board members.
Company-wide online communication
tools include a blog, an employee
video channel (NSNtube) and a social
media channel for employees to
connect with each other (MySite).
Specific engagement activities in 2011
included:
Joining the Green Grid, a nonprofit consortium of ICT end-users,
policy-makers, technology providers
and utility companies collaborating
to improve the efficiency of data
centres. By joining this network
of more than 175 companies, we
are contributing to industry-wide
recommendations and sharing best
practice for improving data centre
efficiency.
high
Ethics, bribery &

corruption
medium
Privacy and Data

Security
Freedom of Expression
Diversity
Climate change
and energy use
Privacy and
human rights
Solutions for
Health and safety
emerging markets of employees
and contractors
Radio waves and health
Labor conditions and
employment issues
Raw Materials Usage
Waste and water
low
In 2011 we communicated with

customers about sustainability through
customer magazines circulated in each
region. Through our partnership with
WWF, we held a One Planet Leaders
workshop in Croatia in 2011 with key
customers. Run in co-operation with
the International Institute for
Management Development (IMD),
the workshop aimed to develop
a shared understanding of how
sustainability can be embedded
into business operations.
Supply Chain
Importance to stakeholders
We communicate on sustainability
to stakeholders including customers,
employees, NGOs and suppliers.
We listen to their perspectives to
improve our understanding and we
explain our position and ambitions.
Intellectual property
Accessibility
low
medium
high
Influence on business success
Supporting the launch of a Green IT

website in Germany that promotes
the environmental and cost benefits
of green IT, particularly aimed at
medium sized businesses. We
supported the German Ministry for
Economics and Technology and
BITKOM, a membership network
for the ICT industry, in setting up
this resource by providing content
for the website.
Participating in the European
Telecommunications Network
Operators Association (ETNO)
to develop best practices on
environmental protection, resource
management and sustainability
policies with peer companies and
policymakers in Europe. We hosted
the plenary meeting of the ETNO
Sustainability Working Group in
Spring 2011, focusing on child
protection, Green IT and smart
grids.
Continuing our membership of the
Global e-Sustainability Initiative
(GeSI) and engaging with members
on supply chain transparency,
conflict minerals and climate
change.
Contributing to the Environmental
Policy Working Group of Digital
Europe. We support the working
group in areas such as energy
management and chemicals.
Using our Connectivity Scorecard

to promote the positive role of
ICT in development. We used
the scorecard in meetings with
governments, industry groups
and economic experts to raise
awareness among stakeholders
of the importance of useful
connectivity (see page 7).
Materiality
We identified the issues most relevant
to our stakeholders and to our
business in 2011 using a tool
developed by GeSI. Designed to
assess which issues are material for
businesses in our sector, the tool
generates a materiality matrix (see
chart) showing the relative significance
of each issue. Building on an analysis
of stakeholder feedback and customer
requirements conducted in 2010, we
reassessed the significance of each
issue this year through interviews with
internal content experts and a high
level review of external inputs such as
media tracking. As a result of this
analysis, we have adjusted the matrix
to reflect the continued rise in the
significance of privacy and human
rights in 2011. In 2012 we plan to refine
our assessment methodology and
conduct a more detailed reassessment.
Connectivity
Information and Communications Technologies (ICT) provide connections,
but useful connectivity is essential to maximize social and economic benefits.
Connectivity Scorecard
We developed the Connectivity
Scorecard to promote these messages
and demonstrate the progress
countries are making. This unique
global ICT index ranks countries
according to how advanced their
communications networks are in
promoting productivity and economic
growth. The Connectivity Scorecard
incorporates more than 40 indicators
of infrastructure, usage and skills.
The results show that leading countries
combine infrastructure investment with
investments in human capital such as
education and training in the consumer,
business and public sectors to unlock
the full potential of ICT.
Information and Communication

Technologies (ICT) can drive social
and economic progress while helping
to reduce the environmental impacts
of many industries and human
activities. Bringing broadband
connections to remote or poor areas
can create new opportunities, while
advanced applications such as cloud
technology, machine-to-machine
connections and social media can
enable and transform new services.
While connectivity is beneficial, we
promote useful connectivity, which
provides a greater stimulus. We define
useful connectivity as the bundle of
ICT hardware and complementary
software, skills and informed use that
realizes the full potential of ICT to drive
social and economic growth and
sustainable development.
There are many aspects of ICT

deployment which determine the extent
to which people use the infrastructure
to unlock and maximize its benefits.
The first requirement for useful
connectivity is access to high
performance, high capacity broadband
networks, whether fixed, mobile or
both. Coverage and access should be
widely available and affordable. End
users must also be aware, able and
motivated to use network services,
which should be easy to use, secure,
reliable and always available.
We have presented the Connectivity

Scorecard concept and results at
meetings with governments, industry
groups, economic experts and our
customers around the world, raising
awareness of the importance of the
many factors contributing to useful
connectivity.
A favorable regulatory and fiscal

framework, including the availability
of spectrum for mobile broadband
services, will enable service providers
to offer cost-effective broadband
services and promote the expansion
of ICT infrastructure and adoption
of services.
The 2011 Connectivity Scorecard

expanded the range of indicators to
include new trends such as mobile
data uptake and cloud computing. The
table to the right shows that Sweden
and the US are in a virtual tie for first
place amongst the Innovation-driven
economies. But with scores of less
than eight out of 10, both countries
could still improve. Among the
economies we characterize as
Resource and Efficiency-driven
there are only a handful of strong
performers such as Malaysia and
Chile, with a large tail of weak
performers. Developing countries
can clearly benefit enormously from
broadband access but many are
struggling to create the right
environment for ICT deployment
and widespread adoption.
Rank [*] Country
Connectivity
score
Rank [*] Country
Connectivity
score
1 [1]
Sweden
7.84
1 [1]
Malaysia
6.61
2 [2]
United States
7.82
2 [3]
Chile
6.21
3 [4]
Denmark
7.47
3 [5]
Russia
5.68
4 [5]
Netherlands
7.45
4 [7]
Turkey
5.51
5 [3]
Norway
7.09
5 [4]
Argentina
5.46
6 [8]
United Kingdom
7.06
6 [6]
Brazil
5.14
7 [7]
Australia
6.93
7 [8]
Mexico
4.87
8 [9]
Canada
6.88
8 [10]
Ukraine
4.81
9 [6]
Finland
6.78
9 [2]
South Africa
4.68
10 [11]
Singapore
6.40
10 [9]
Colombia
4.06
11 [15]
Belgium
6.31
11 [12]
Thailand
3.68
12 [n/a]
Austria
6.27
12 [13]
Tunisia
2.79
13 [17]
Germany
6.27
13 [15]
Vietnam
2.73
14 [12]
Ireland
6.08
14 [17]
China
2.72
15 [18]
France
6.06
15 [14]
Iran
2.41
16 [10]
Japan
5.89
16 [19]
Philippines
2.15
17 [16]
New Zealand
5.84
17 [n/a]
Syria
2.11
During 2011, Nokia Siemens Networks

announced almost 200 ICT references,
including many that will expand
availability of fixed and mobile
broadband networks, using 3G, 4G
LTE, Flexi Multiradio, and Liquid
Networks; and others that promote
usage and skills.
18 [13]
Korea
5.80
18 [20]
Indonesia
2.01
19 [20]
Spain
5.09
19 [16]
Sri Lanka
2.01
20 [19]
Czech Republic
4.93
20 [18]
Egypt
1.89
21 [21]
Portugal
4.80
21 [21]
India
1.25
22 [22]
Italy
4.79
22 [25]
Pakistan
1.14
23 [23]
Hungary
4.50
23 [23]
Nigeria
1.09
24 [24]
Poland
4.26
24 [22]
Kenya
0.95
25 [25]
Greece
4.22
25 [24]
Bangladesh
0.90
See www.nokiasiemensnetworks.com/
portfolio.
* last years rank in parenthesis
* last years rank in parenthesis
Table 1: Connectivity Scorecard 2011

Results Innovation-driven Economies
Table 2: Connectivity Scorecard 2011

Results Resource &Efficiency-driven Economies
Environmentalimpacts
ofourproducts andservices
Our products and services help customers meet their environmental targets by improving
energy efficiency and minimizing resource use. We are also developing smart applications
which will help to manage the distribution and use of energy more effectively.
2011 Highlights

Launched Liquid Net to help networks cope with variable demand efficiently
Extended Managed Energy Services to support network operators energy efficiency
Developed the first off-grid base station in Germany with zero operating emissions
Introduced smart grid products to support the development of distributed energy grids
Progress against targets

Target
Progress in 2011
Status
Improve the efficiency of GSM/EDGE and WDCMA/HSPA base station products by up to 40 percent
compared to 2007 performance by end of 2012
On track to meet this target
Ongoing
Achieve full material content data collection for 90% of components in use at Nokia Siemens
Networks by end of 2012
Ongoing
100% coverage for environmental data of packaging materials in corporate level IT system and
environmental reporting system by 2013
Progress continued in 2011 but not

fast enough to meet the target.
Additional resources are being
applied but the scope of this task
remains unclear. We are therefore
unable to specify a new target date.
Not achievable
target abandoned
Future targets
Target
Target date
Improve the efficiency of GSM/EDGE and WDCMA/HSPA base station products by up to 40 percent compared to 2007 performance
End 2012
Achieve full material content data collection for 90% of components in use at Nokia Siemens Networks
End 2012
Increase the average energy efficiency of the product portfolio by 5% per year on average
Ongoing
Performance in 2011
Energy
Product lifetime energy consumption (GWh)
Product lifetime energy consumption vs. sales (kWh/)

2,0
30000
1,8
25000
1,6
1,4
20000
1,2
0,6
2008
2009
1,8
1,6
24777
0,8
1,3
1,0
1,3
5000
19924
16800
10000
20500
15000
0,4
0,2
2008
2009
2010
0,0
2011
2010
2011
Lifetime energy consumption of our

products in use has risen in the past
two years as a result of growing sales
volumes. Energy per Euro of sales has
also risen due to changes in product
mix and pricing.
Take-back
Equipment returned from customers (tonnes)
6000
5000
4000
4159
4854
3000
1800
2000
375
We continued to increase the amount

or equipment taken back from
customers at the end of its use. The
proportion sent to landfill was even
smaller in 2011 than in previous years
as contractors incinerated slightly more
material. Sustained efforts to increase
the reuse of packaging in our
distribution hubs also succeeded in
continuing the upward trend.
2008
2009
1000
0
2010
2011
Packaging
Packaging reused in distribution hubs (tonnes)
Destination of returned base stations in 2011 (%)
4500
13,1%
4000
1,3%
0,8%
Reused
3500
Incinerated with
energy recovery
1500
1000
2836
2000
3471
2500
4078
3000
Incinerated without
energy recovery
500
0
10
2009
2010
2011
84,8%
Sent to landfill
Strategy
We aim to minimize the environmental
impacts of our products and our
customers networks by developing
hardware which uses energy and
materials efficiently, and providing
innovative services that maximize the
efficiency of the network. Our longer
term objective is to help realize the
potential of mobile broadband to
contribute to a sustainable global
economy.
Activity in 2011
The main focus of our environmental
activity continues to be on reducing
energy use and related carbon dioxide
(CO2) emissions. This is the most
significant impact of our products and
where we can make the most
difference. We provide low-energy
products and services for the ICT
industry and we are developing
services to help customers reduce
emissions by improving energy
management. While energy is the
priority, we also continue to manage
other environmental issues associated
with our products, including hazardous
substances and the use of materials.
Energy-efficient hardware
Energy-efficient base stations are
the foundation of low-carbon mobile
communications. Our Flexi products
operate with energy-saving software
that cuts power consumption to less
than many domestic appliances.
Awards
Our Field Service Management
system and our cloud-based
communication and messaging
platform won Global Telecoms
Business Innovation Awards in
2011. Both services use software
to provide services that would
otherwise require more physical
and energy resources.
We work with others in our industry

to identify energy-saving opportunities.
For example, Nokia Siemens Networks
was one of 10 partners participating in
the three-year Opera-net study
examining energy-efficiency across the
network infrastructure. Completed
in 2011, the study concluded that
emerging technologies offer several
opportunities to achieve step-change
reductions in network energy use. In
February 2012, OPERA-net received
the silver award for one of the most
successful projects in the EUs CELTIC
research program.
Results from OPERA have been
implemented in new software features
to increase efficiency of installed base
stations and are used in developing
new products. Our customer and
project partner Orange is improving
energy efficiency of its network with
OPERA learning. We continue to be
involved in OPERA2, which is building
on the first project.
Customers need to be able to compare
products environmental characteristics
easily to choose the most sustainable
option. We are active in several
international standardization bodies
such as ITU-T, ETSI-EE to develop
environmental standards footprint
methodologies for the telecoms sector,
as well as European Commission
projects. For example, we supported
the development of the second edition
of the ETSI technical specification,
introduced in 2011, for comparing
energy efficiency of mobile network
equipment based on realistic usage
patterns. We carried out pilot studies
arranged by the European Commission
to test the applicability of environmental
reporting standards. We tested
standards and methodologies for
corporate and product/service impact
from ITU-T, GHG protocol, ETSI and
the European Research Center JRC.
Software and services for

energy-efficient networks
We launched Liquid Net in 2011 to help

networks cope with highly variable
demand at different times of the day
and at different locations. This is
particularly important because we
estimate that smartphones and new
applications will result in up to 100
times higher traffic per user and volatile
demand patterns. Liquid net shares
resources, releasing unused capacity
and allowing networks to adapt to meet
capacity and coverage requirements
based on demand. We estimate that
sharing resources in this way can save
40% of energy required using
conventional, dedicated resources.
We are investing in remote services
which reduce emissions by replacing
physical travel to network sites by
our employees, sub-contractors or
the network operators personnel.
Our Global Service Delivery center
already remotely manages 1.1 million
network elements and over 200 million
subscribers on 450 customers networks
more than half of all customer sites.
More than a third of our Consulting and
Systems Integration projects use
remote delivery capabilities.
Our customer proposition is expected
to include environmental benefits from
the earliest phase of development.
Energy management
solutions
Our energy services help network
operators meet their greenhouse gas
emissions targets as well as saving
energy costs, which are particularly
significant in the fast-growing emerging
markets. In 2011 we extended our
portfolio to include Managed Energy
Services. These help operators reduce
operating costs and their carbon
footprint, addressing concerns
including rural and remote areas
with inadequate or no electricity grid.
While technical developments achieve

step-changes in hardware energy
efficiency from time to time, innovative
software can cut energy consumption
and emissions significantly by reducing
the amount of hardware required.
11
Managed Energy Services cover:

Products, solutions and services
that can help optimize the energy
consumption on the site or at the
network level.
Operational Services to manage
customers entire Energy Estate.
By closely monitoring all power
sources, we help to manage and
reduce overheads associated with
energy throughout customers
operations. Smart Energy
procurement considers the entire
energy procurement chain, from
selecting a provider to paying the
utility company. Our solutions help
to identify the most economical tariff
as well as managing energy use
effectively.
Green Incentives: we help
customers make the most of
incentives that subsidize energy
efficiency and renewable supplies
in specific markets. We identify
national or regional tax incentives,
feed-in tariffs, grants or preferential
interest rates, and help customers
obtain the best deal.
These new services complement our

Energy Solutions portfolio through
which we manage network energy.
Energy Solutions includes optimizing
equipment and site design, remote
monitoring, field maintenance and
provision of renewable energy
supplies.
Renewable energy sources can
replace grid power in developed
markets as well as providing power to
connect rural and remote areas with no
grid electricity. (See case study below.)
These off-grid solutions replace diesel
generators, which are costly and add
significant CO2 emissions. Customers
in emerging markets are already
cutting generator runtime by up to
90%.
Network
of global
experts
Case study
Achieved
savings
Focus:
Assessing energy estate: business case,

technical aspects, operational aspects
Full range of solutions for new
and existing sites
Turnkeye approach: design, delivery,
implementation, care, operation,
training, consultancy
Quality:
Rigorous product
homologation and complete
system verification
Applying Nokia Siemens
Networks top quality
services processes
and practices
12
Innovation:
Our hardware, software and services

help to cut the power needs of mobile
networks and Energy Solutions help
operators manage their energy needs
effectively. But the greatest contribution
mobile technology can make to curbing
energy and emissions is to provide
remote communications that improve
productivity and efficiency in activities
beyond the ICT sector. This can save
energy directly by avoiding transport,
for example, and can bring additional
benefits through dematerialization
replacing physical goods with
electronics which saves material
resources as well as the energy
needed to manufacture them.
In 2011, we applied energy efficiency

measures to more than 2,000 legacy
radio mobile broadband sites around
the world. These solutions have
successfully generated energy cost
savings in the form of reduced
consumption from the electricity grid
and lower fuel consumption. Emerging
markets have demonstrated a wide
range of energy savings, from 35% to
80% and in some cases completely
eliminated the use of generators.
Energy, the Nokia Siemens Networks way

3000+
credentials
globally
Smart applications
Engineering innovative
solutions for Operators
needs
Continually scouting
for best in class products
Renewable power for E-plus

In 2011, Nokia Siemens Networks and our customer
E-Plus created the first off-grid base station in Germany
with zero operating emissions. In the initial six months
of operation, the site in Versmold in rural Germany
avoided more than 4.6 tonnes of CO2 emissions.
This is the first of 13 such base stations planned at
sites across the country, supporting the operators
environmental objectives. The solution combines
renewable energy generation, low power consumption
and remote energy management. Off-grid power is
provided by a combination of solar and wind,
supported by fuel cell and battery technology.
Successful operation relies on our integration and
control technology, including the Green Energy
Controller which manages the different power sources.
Using our SiteStar cabinet significantly reduces
operating costs by keeping the batteries at stable
temperatures. It requires up to 95% less energy
compared with conventional cooling systems.
We have concentrated on energy

applications, including smart grid
concepts that will enable distributed
energy management. The main
activities in 2011 were:
Demand Response for eEnergy:
a consortium including Nokia
Siemens Networks proved the
concept of creating tradable energy
capacity by shifting consumption
to times when electricity is cheaper
and/or comes from greener sources.
We demonstrated the concept using
our Cumulocity machine-to-machine
(M2M) platform for Helsinki Energy
in Finland.
MicroGrid management:
we developed our Green Energy
Controller to manage distributed
energy from community level
microgrids and offer a brokerage
service to energy aggregators.
Smart Grid Connectivity:
we are researching optimal
connectivity for eEnergy
applications based on mobile
broadband solutions. Our Smart
Grid Connectivity lab became
operational in 2011.
eMobility (EMO):
we have been researching solutions
allowing users to charge electric
vehicles at any charging points
and pay conveniently using proven
mobile technologies. EMO won the
2011 WWF award at our quality
awards in 2011.
Internet of Energy:
we participated in this three-year
project which began in 2011 to
develop hardware, software and
middleware to connect the Internet
with energy grids and create an
infrastructure for electrical vehicles.
FINSENY:
we started working with partners
from the ICT and energy sectors
in 2011 to identify the ICT
requirements of Smart Energy
Systems, and define new solutions
and standards for a large scale
pan-European Smart Energy trial.
Other environmental product

impacts
Our product and service development
processes include requirements to
consider environmental factors and
minimize resource use.
The Nokia Siemens Networks
Substance List helps to manage
materials used in our products,
identifying banned and restricted
substances. It is regularly updated and
in 2011 we integrated the acquired
Motorola substance list.
The Substance List is communicated
to suppliers and we encourage them
to phase-out substances which are
classified as Monitored. Arsenic is
one example, which is currently
present in semiconductor products.
We have made Arsenic a restricted
substance, and our system will warn if
the arsenic content exceeds 1000 parts
per million in homogenous material.
We comply with the EU Restriction of
Hazardous Substances (RoHS)
Directive and Registration, Evaluation,
Authorisation and restriction of
Chemicals (REACH) regulations.

Our ongoing work to gather material
data for components enables us to
know if a REACH Substance of Very
High Concern (SVHC) is present in a
component. We will be able to track
those components if such a substance
becomes restricted or banned.
We aim to minimize material use,
especially rare minerals that are in
short supply but are critical for ICT
products. Our Flexi 2 RF Module uses
approximately two-thirds of the material
of Flexi 1 because it integrates three
transceivers in a single system module.
Our approach is to incorporate material
efficiency in product design and
development, aiming to:
Reduce material volumes for both
product and packaging
Re-use material that has been
recycled and use material that is
easily recyclable
Recycle, based on End of Life
management practices that
encourage recycling.
Radio waves and health

Electromagnetic fields (EMF) are all around us. They are
emitted from a wide range of sources, some natural and
others manmade such as radio waves from mobile phones,
wireless devices, radar, radio and television broadcasts.
Extensive scientific research has investigated the possible
health effects of radio waves. Based on this catalogue
of research, the World Health Organization (WHO)
stated in its latest fact sheet in June 2011 that
no adverse health effects have been established
as being caused by mobile phone use.
Wireless communications technologies operate well within
the limits recommended by the International Commission on
Non-Ionizing Radiation Protection and endorsed by the WHO,
and we work to ensure continued compliance of our products
with these requirements.
We understand that some people remain concerned and aim
to respond to these concerns by monitoring ongoing research
related to radio waves and providing links to research reviews
from independent experts on our website. In 2012, we will
also enhance our communications to enable us to better
respond to enquiries with clear fact-based information from
reputable independent sources.
13
Packaging is an area where we

continually look for reductions to save
money and reduce waste. Two projects
in 2011 highlight the potential:
We created a new type of design
for relatively light-weight cabinets,
replacing a traditional wooden pallet
with recycled fibre-based material
and reusing cardboard.
As a result we reduced the weight
of materials by approximately 1,400
tonnes, saving around 650 tonnes
of CO2 emissions. This project was
a runner-up in our internal quality
awards in 2011 in the corporate
responsibility category.
In a new approach to packaging
for deliveries from factories to our
distribution hubs we piloted a lighter
box-on-a-pallet concept which
significantly reduces the volume of
packaging material as well as the
cost of materials and transport. We
were able to increase packaging
density by 16% and reduce the
volume of packaging material by one
third. We will further develop this
concept in 2012.
14
We have steadily increased the volume

of equipment we take back each year,
avoiding potentially hazardous disposal
and conserving materials. In 2011 we
widened our scope to include other
manufacturers equipment.
We use a small number of reputable
and professional recycling companies
which can dismantle equipment and
are able to treat from component level
to entire products in their own recycling
facilities, handling hazardous waste

responsibly. We also require these
suppliers to have good reporting
systems to provide transparency and
allow us to meet our reporting needs.
In 2011 we carried out system audits at
four of our six main recycling
companies, including two site audits in
India. The audits confirmed these
companies have strong processes and
identified some areas for improvement.

Our operations must be efficient in the use of energy and other resources.
We aim to continually improve energy efficiency in our buildings, data centers and other
operational areas, and incorporate sustainability principals during design and construction
of sites. We also save energy and other resources by minimizing waste.
2011 Highlights
Included energy, waste and water data from 43 acquired Motorola sites
and accompanying 7,000 employees
Achieved company-wide ISO 14001 certification
Made energy efficiency savings of 9,450 MWh
Diverted 82% of waste from landfill
More than 40 energy efficiency studies identified substantial energy saving potential
Target
Progress in 2011
Status
Achieve ISO 14001 certification for Nokia Siemens Networks

environmental management system
Certification achieved in August 2011
Achieved
Reduce emissions for new cars in the Europe service fleet to 120g/km
Achieved for Finland but not for Germany due to related diesel
particulates
Partly achieved
Reduce CO2 emissions from buildings by 30% by end 2012 from the
2007 baseline
Despite a 0.4% increase in 2011, emissions from buildings are

31% lower than 2007 (excluding former Motorola sites).
Ongoing
Improve the energy efficiency of buildings to reduce associated energy

use by 34,300 MWh by end 2012
Energy efficiency savings in 2011 were 9,450 MWh including

those implemented at acquired Motorola sites. Total savings since
2007 are 24,078 MWh.
Ongoing
Reduce CO2 emissions from IT operations and use of IT products by

20% by 2015 from the 2008 baseline
Emissions (excluding Motorola) were 4.5% below the baseline in

2011
Ongoing
Improve data center infrastructure efficiency (DCiE) to an average of 0.5

by 2015
Achieved a DCiE of 0.52 in 2011
Achieved
Site data from 2011 were not available for Motorola sites at the time of reporting
Future targets
Target
Target date
Average 5% reduction year on year for energy consumption of own operations.
Ongoing
Reduce CO2 emissions from buildings by 30% from 2007 baseline
End 2012
Improve the energy efficiency of buildings to reduce associated energy use by 34,300 MWh
End 2012
Reduce CO2 emissions from IT operations and use of IT products by 20% (from the 2008 baseline)
End 2015
15
Performance in 20112
Energy
Total energy use in buildings (GWh)3
Excluding
Motorola
700
4%
6%
600
Electricity from
renewable sources*
500
42%
483
540
518
200
551
300
609
400
District Heating
48%
100
0
Other electricity
Gas
2008
2009
2011*
2010
Note that figures for 2011 include the Motorola acquisition unless otherwise specified
Total Energy use data and associated carbon emission figures account for consumption of buildings
larger than 3,000m2, representing 80% of Nokia Siemens Networks RE portfolio.
3
Carbon footprint
Total CO2 emissions relative to sales and employees
60
CO2/net sales (g/)
50
CO2 per employee

(tonnes)
2007
2008
2009
2010
3,9
20
20
4,5
23
10
5,2
20
20
14,5
30
55
40
2011
Note: 2010 figures have been restated due to previous calculation error
Emissions from operations (Thousand tonnes CO2)

500
400
426
369
200
456
300
100
0
16
2009
2010
2011
2009
2010
2011
Buildings energy use
243
239
269
Less Green Electricity
-38
-67
-60
External data centers
3.5
2.2
Logistics (outbound)
169
110
135
Air travel*
78
83
80
Total
456
368.5
426
Total emissions have increased due to the Motorola acquisition and

a higher proportion of electricity in regions where we do not buy
renewable energy. Despite these factors, emissions are lower than
2009 due to the increase in green electricity since then.
Total greenhouse gas emissions from buildings (tonnes CO2 equivalent unless specified)
2008
2009
2010
Excluding
Including
Motorola 2011 Motorola
Total emissions
217,000
206,000
172,476
173,213*
208,421*4
Indirect emissions from purchased

electricity and district heating
209,000
203,000
169,609
169,546*
204,646
Direct emissions from gas and oil used in

our facilities, methane and nitrous oxide
from heating
7,600
3,000
2,867
3,667*
3,776
Ozone depleting substances (kg)5
0.12
20
26
37
39
HFC from refrigerants
283
997
1,616
2607
2,670
Emissions from existing buildings were

virtually the same as in 2010 despite
lower energy consumption. This is
because a higher proportion of
electricity consumption was in regions
with no renewables purchases and
higher CO2 emissions factors.
This data supercedes the data point published for Nokia's 20-F submission, as the figure was updated to reflect the actual
electricity consumption for November and December.
5
2010 figures cover data from all regions, previous years only Finland and China
4
Water*
Total water use by region (m3) 6
West and Southern Europe (139)

China (225)
North East (58)
We used a total of 597 m3 of water

in 2011. Water consumption was 22%
lower than in 2010, with a major
reduction in west and southern Europe
offset by a significant increase in China.
India (30)
Asia Pacific (4)
North America (117)
Latin America (3)
Middle East and Africa (18)
Total water usage differs from what was reported by Nokia Siemens Networks earlier
in the year, on account of actual figures from some sites for the last two months of the
year and a corrected figure from one site in China.
6
Waste
Disposal of waste in 2011 (tonnes)
Recycled (57%)
Waste to energy (13%)
Landfill and incineration (18%)
We generated a total of 8,150.05

tonnes of waste in 2011. Waste data is
not comparable with previous years.
We collected waste data from 103 sites
in 2011 compared to 69 previously,
which results in a 24% increase in the
reported figure. The proportion of
waste not reused, recycled or used to
generate energy remained less than
a fifth of the total.
Reused (12%)
Award for Chennai site

The Electronics Industries Association of India (ELCINA) and Electronics
For You magazine awarded our Chennai factory second place in its annual
awards for Excellence in Electronics Hardware Manufacturing and Services.
The award recognized outstanding Environment Management based on
mature processes, systems and commitment.
17
Strategy
We aim to minimize energy use and
greenhouse gas emissions from our
buildings and IT operations through
efficiency measures and the use of
renewable energy sources.
Encouraging employees to travel
less and choose lower-carbon options
also contributes to meeting our targets,
and we aim to achieve improvements
in emissions from logistics. A robust,
certified management system
underpins our efforts to reduce
environmental impacts in all areas.
Activity in 2011
As well as making progress towards
energy reduction targets, we achieved
company-wide certification for our
environmental management system
(EMS) under the international standard
ISO 14001. Certification extended the
previous coverage of our
manufacturing operations which has
been in place for several years. It now
extends to every part of our business
and confirms that we have a sound
understanding of all our environmental
impacts as well as an effective EMS
and plans for continual improvement.
The certification process involved
audits throughout the business and
sought to verify the implementation of
the environmental management
processes. Certification requires all
areas of the business to consider their
environmental impacts and develop
plans to reduce them.
18
The acquisition of part of Motorolas

wireless network infrastructure
business has affected the trends in
our environmental data in 2011.
As a result, we have reported our
total data both including and excluding
former Motorola operations.
These will be fully integrated into
our environmental reporting in 2012.
Energy-efficient buildings
Since the launch of our energy
efficiency program in 2009, we have
implemented approximately 200
energy conservation measures at our
factories, test labs and office buildings.
In 2011, we conducted 24 site
assessments and implemented over
50 new energy savings projects, taking
total savings to 25,314 MWh.
Investment criteria limited projects to
those with a payback of less than a
year. Examples include harnessing
free cooling for the ventilation system
at Suzhou and Shanghai in China,
reducing energy consumption during
lunch hours at production centers,
upgrading the lighting system in
Shanghai and Oulu (Finland), and
changing humidity settings at Chennai
(India).
Our test labs are our most energyintensive buildings, accounting for
approximately 40% of total energy
consumption. For example, auditing
the Tampere campus in Finland found
potential savings of 2,850 MWh a year
approximately 10% of the sites
electricity consumption in 2010.
The biggest savings will come from
using more efficient test equipment
and introducing raised flooring to
improve cooling efficiency. We also
found several opportunities to cut
electricity consumption by relatively
simple and cost-effective changes
to the cooling and ventilation.
These include increasing chiller water
temperatures, changing temperature
and humidity settings, and automating
measurement of energy consumption.
We have contracted a specialist

Environment Health & Safety provider,
Ch2M Hill, to supply energy
management and environment,
health and safety assessment services
for our buildings to enable us to
achieve a higher level of sustainable
operations, supported by data and
external audits. In 2011 Ch2M Hill
conducted two energy audits at our
production site in Oulu, Finland and a
large R&D site in Irving, Texas. These
audits identified an estimated energy
saving potential of 8-12% of the 2010
consumption levels of these sites,
double the typical savings from our
existing energy program. These
savings will be implemented in 2012.
Renewable energy further reduces the
emissions from our operations. More
than 40% of our electricity supplies
were from renewable sources in 2011,
with certified renewable energy
purchased in Germany, Finland, and
the UK. We have further increased
these carbon-free sources with a
commitment to purchase an estimated
7,000 to 8,000 MWh of certified
e-GREEN energy in the US.
We aim to reduce the environmental
impacts of our buildings through, for
example, planning and allocating
space more efficiently and setting
higher standards of environmental
performance when selecting,
designing, and building out
Nokia Siemens Networks facilities.
A study in 2011 demonstrated the
business case for applying this
approach to all our buildings. For
example, we have applied for the
LEED (Leadership in Energy and
Environmental Design) Gold
certification for our new global network
operations center in Chennai.
Green IT
Data centers are high energy users
and account for most of our IT energy
consumption. In 2011 we piloted the
use of smart meters to manage energy
more effectively. The meters provide
real-time information on energy
consumption, identifying the
components using the most energy.
This means we can set more precise
limits and take action to adjust power
needs in real time rather than acting
on historic information.
We commissioned an energy audit of

the Helsinki data center in Finland in
2011 to identify further improvements.
The audit compared our performance
against the EU Code of Conduct on
data centers. It identified several areas
for improvement, including regularly
decommissioning hardware that is no
longer required, physical changes to
the structure to improve air flow, and
setting an optimal target temperature.
In 2011 Nokia Siemens Networks
joined the Green Grid Association,
a global organization of IT providers
and users committed to realizing
resource efficient business computing,
with a particular focus on data centers.
Membership provides an opportunity
to share ideas and identify new
approaches.
Travel and logistics

Our strategy to deliver network
services remotely where possible
is reducing service-based travel.
Increasingly, we use software to
monitor network performance and
carry out maintenance instead
of service personnel travelling
to sites, which are often remote
(see Environmental impacts of
our products, page 9).
Changes to service operations mean
we now use more cars than vans.
We require all vehicles in our fleet to
meet high environmental standards,
including average tailpipe emissions
of less than 120g CO2/km in Europe.
We have tested hybrid electric cars
but have been unable to use them
extensively because we do not have a
global supply agreement with the main
manufacturers. This is likely to change
as further manufacturers introduce
hybrid models.
There is also potential to save energy
and emissions in our logistics
operations, mainly by switching from
air freight which produces 95% of
logistics CO2. We have reduced the
amount of airfreight to 28% of the total
and are continuing to reduce this
proportion.
Restrictions on business travel

which have been in force since 2009
have now become permanent
non-essential business travel is ruled
out, especially for internal meetings.
Instead, employees use
teleconferences and our 36 HALO
video conference facilities for virtual
face-to-face sessions. In Germany,
our business rail travel is covered
by the operators renewable energy
contract, avoiding nearly 100 tonnes
of CO2 emissions in 2011.
When employees do have to fly on
business we provide airport transfer
shuttle buses in more than 90 cities
and over 30 countries. The buses
cause lower emissions than if people
made their own way to their hotels,
and are very widely used. For example,
in China almost 2,000 employees use
the shuttles in Shanghai, Chengdu,
Suzhou and Hangzhou.
We also consider the environmental
performance of the hotels employees
use. In 2011 we developed
environmental selection criteria for
hotels in seven cities in Finland based
on an analysis showing a wide range
of CO2 emissions. For example,
emissions for hotels in Helsinki range
from 3kg/guest night to almost 11kg.
Employees are encouraged to use
hotels with below average emissions
when financial considerations are
equal.
Waste
We aim to minimize waste and send
as little as possible to landfill. In many
cases we can make a big difference
by implementing relatively simple
improvements. For example, the Oulu
site in Finland diverted 96% of its
waste from landfill in 2011 well above
the 75% target. The site achieved this
result by raising awareness among
employees and providing bins for each
kind of waste. Separate waste streams
include energy waste, which includes
items that can be burned for energy,
such as foam rubber, plastic packaging
and paper or cardboard that is too dirty
to be recycled.
Raising environmental
awareness
The environmental performance
of our operations depends on the
commitment of our employees.
We communicate frequently on
environmental issues through our
wide range of communication channels
and raise the profile of specific issues
through internal awards. For example,
a packaging concept was featured
in the quality awards in 2011
(see Environmental impact of our
products, page 9).
The monthly IT newsletter to all
employees includes frequent coverage
of environmental aspects to broaden
users knowledge of the impact they
can have on energy consumption by
taking simple steps, such as turning off
computers when they are not in use.
Data collection
Reducing the impact of our operations
depends on consistent and reliable
data on our main impacts, which are
direct and indirect forms of energy use,
hazardous and non-hazardous waste,
and water.
In 2011, we expanded the scope of
data collection to gather energy, waste,
water and refrigerant data from more
sites. We also put in place processes
and controls to gather data more
consistently and we implemented data
integrity checks across all regions to
improve data quality.
We now collect data on electricity
consumption from more than 133 sites,
renewable energy from three countries,
water consumption from 98 sites and
waste from 103.
In 2011, we began a pilot project to
develop sub metering of building
energy which will help to reduce
consumption by providing more
detailed information.
19

Our Code of Conduct sets out our commitment to uphold high ethical standards wherever
we operate. We train our employees on ethical business conduct every year and we
expect them to follow the Code. Any reported ethical concerns are investigated thoroughly
by our Ethics and Compliance Office.
2011 Highlights
90% of employees completed ethical business conduct training
5,647 employees were trained on anti-corruption in face-to-face training sessions
New conflict of interest policy developed

Target
Progress in 2011
Status
Ensure all employees complete annual ethical business training by the

end of 2011
90% of employees completed ethical business training in 2011
Partially achieved
Conduct a further 200 anti-corruption training sessions by the end of

2011
184 face-to-face sessions held on anti-corruption, training 5,647

employees; although we held fewer sessions than planned, we
have trained significantly more employees
Partially achieved
Review anti-corruption training materials to help employees understand

the information more easily by the end of 2011
Anti-corruption training materials reviewed in November 2011
Achieved
Establish a 24-hour telephone ethics reporting system available in key

countries where we operate by the end of 2011
Terms for telephone helpline agreed with vendor and expected to

open in 2012
Partially achieved
Future targets
Target
Target date
Ensure all employees complete annual ethical business training
End 2012
Roll out online anti-corruption training for all employees
End 2012
Establish a 24-hour telephone ethics reporting system available in key countries where we operate.
End 2012
Performance in 2011
Ethics survey
75%
of employees believe
behaves with integrity in its external
dealings (for example, with customers
and the general public) according to
our Pulse Survey of employees in
April 2011, representing 47% of staff
(see Employees, page 36). This is a
slight decline from the 78% positive
response rate in the full 2010
Employee Engagement Survey.
20
Completion Data on the number of

employees that completed ethical
business conduct training in 2011
includes, for the first time, both online
and face-to-face training for all
employees. The majority of ethical
business conduct training was carried
out online, but more than 5,000
workers that do not have everyday
access to the internet were trained
face-to-face. This means the figure has

fallen slightly from the 92% reported in
2010, which only covered employees
with everyday access to the internet.
Overall, more employees were trained
on ethical business than ever before.
In addition to ethical business training,
Ethics and Compliance Officers
provided face-to-face training sessions
on anti-corruption.
Training in 2011
Percentage of employees completing ethical business conduct training
90%*
Number of employees completed additional anti-corruption training
5,647
Ethics enquiries
Enquiries made via the ethics email reporting channel
The Ethics & Compliance Office
received 302 enquiries in 2011
(compared with 175 the previous year)
via email and via the anonymous
hotline on our website. Enquiries were
received relating to human rights,
customer policy and privacy for the
first time. We expect the number of
enquiries to increase each year as
employees become more aware of
reporting channels.
2010
2011
Anti-Corruption
15
Conflict of Interest
13
18
Gifts & hospitality
16
36
Code of conduct
12
26
Human resources (fairness)
25
21
Labor conditions & supply chain
Legal & compliance
29
13
Workplace practices
20
General guidance & advice
43
125
Human rights
10
Investigations and resulting disciplinary action in 2011
Customer policy
Investigations by our Ethics &

Compliance Office
Employees given a written

warning
Privacy
Employees dismissed on
grounds of violation of
Code of Conduct
Total
175
302
112
40
30
Investigations
The Ethics & Compliance Office

initiated 112 investigations concerning
alleged violations of the Nokia Siemens
Networks Code of Conduct in 2011,
compared with 148 investigations in
2010. The majority of these related to
theft, fraud, embezzlement of funds,
conflict of interest, corruption and
internal policy violations. These

investigations resulted in the
termination of employment of 40
employees for violating our Code of
Conduct, including theft, fraud, conflict
of interest and sharing of confidential
company information. A further 30
employees received a written warning.
Examples of ethical issues encountered by employees in 2011

Issue raised
Our guidance
Action taken
Two employees reported that the HR Public

Relations Office was demanding bribes for
processing work permits, family visas and other
services.
Our Code of Conduct clearly states that bribery

has no place in Nokia Siemens Networks and all
employees are prohibited from giving or
receiving bribes. This is reinforced by guidance
in our Anti-Corruption Employee Handbook.
The allegations were substantiated following an

investigation by the Ethics & Compliance Office
and Human Resources function. An employee
was dismissed for breaching the Code of
Conduct.
An anonymous email reported that a Nokia

Siemens Networks employee favored a
particular sub-contractor for projects and was
receiving favors and payments from the subcontractor in return.
Our zero tolerance policy on bribery is set out in

our Code of Conduct and Anti-Corruption
Employee Handbook. Nokia Siemens Networks
is committed to contract only with partners who
adhere to a similar strict ethical code.
The Ethics & Compliance Office investigated the

allegation and it was substantiated. An employee
was dismissed and the sub-contractors contract
was terminated for breaching the Code of
Conduct.
The Ethics & Compliance Office was notified that

employees were submitting false claims for
expenses, stating they were for food and drinks
to entertain customers.
Nokia Siemens Networks does not tolerate fraud

and our Anti-Corruption Employee Handbook
states that customer entertainment can only be
charged to the company if the customer is
present at the time. The handbook also states
that customer entertainment must not be
extravagant.
The employees concerned admitted submitting

false expense claims following an investigation
by the Ethics & Compliance Office. They
received a verbal warning. In addition, the
Region Head advised all Customer Team Heads
against extravagant customer entertainment and
reiterated the guidelines that the customer must
be present.
21
Strategy
Our Code of Conduct clearly sets out
the behavior we expect from our
employees, suppliers and business
partners. We train employees to help
them understand and adhere to our
ethical standards, and to ensure they
know how to report concerns about
unethical behavior. Employees in
Nokia Siemens Networks procurement
team are given additional training
and we work with our suppliers and
business partners to ensure they meet
our standards. Our robust policies
and procedures for tackling unethical
behavior and corruption are important
to ensure our customers can trust the
integrity of our business.
Activity in 2011
We have focused on embedding and
extending our compliance policies and
procedures, as well as continuing to
make sure all employees understand
what it means to be an ethical
company. The number of ethics
enquiries from employees increased
following our annual refresher training
in ethical business conduct in
November and December 2011.
This demonstrates how important
regular training is to raise and maintain
employee awareness about our
policies and procedures for reporting
concerns.
Training and awareness

Every year employees are required to
complete training on ethical business
conduct. The training presents real-life
situations, renewed each year,
highlighting aspects of the companys
Code of Conduct such as privacy,
human rights, conflict of interest and
Report a concern
Employees and external parties
can report ethical concerns:
By email at [email protected]
Via our online hotline:
http://www.nokiasiemensnetworks.com/
about-us/sustainability/
ethics-and-compliance-hotline
22
netiquette (good conduct online).

It is designed to help employees
understand how to deal with ethical
dilemmas they may face in their
day-to-day work lives and make them
aware of the helpline. It highlights the
support available to them to prevent
unethical conduct and explains how
they can report concerns.
Most employees completed the training
online and more than 5,000 factory
workers who do not have everyday
internet access were trained through
face-to-face sessions. In addition,
Ethics & Compliance Officers led
face-to-face training sessions on
anti-corruption for those in high-risk
roles such as sales. Former Motorola
employees were also given this
training.
We required all those joining Nokia
Siemens Networks from Motorola to
complete our online ethical business
conduct training and provided a link
to the training on the intranet page
created for new joiners. Information on
the Code of Conduct was also included
in their welcome packs and the Head
of Legal Counsel highlighted the
importance of understanding and
complying with the Code during town
hall meetings for former Motorola
employees.
We also consolidated various sources
of information about ethical behavior
and reporting concerns in 2011 to
create a new intranet page for all
employees, designed to help them find
information and support more easily.
Reporting concerns
Employees and people outside the
company can ask for guidance on
ethical issues relating to our business
or report ethical concerns by emailing
[email protected]. Concerns can also
be reported anonymously through the
ethics hotline on our website. In 2011,
we did not introduce a 24-hour
telephone helpline as planned but
this will be available in early 2012.
All reports of ethical misconduct are
taken seriously and investigated by
the Ethics & Compliance Office.
Anti-corruption:
prevention and detection
Preventing and detecting potential
conflicts of interest is an ethical
business priority. Our anti-corruption
program focuses on training to prevent
corrupt behavior and on encouraging
people to report concerns.
In 2011 our legal, compliance and
human resources teams worked
together to clarify our guidance on
conflicts of interest and established a
new conflict of interest policy. The
Ethics and Compliance Office trained
5,647 employees in high risk roles
face-to-face, and developed an online
anti-corruption training course to help
Nokia Siemens Networks employees
recognize potential conflicts of interest
and corrupt behavior. This anticorruption online training is mandatory
for all employees who deal with
customers, vendors, subcontractors
and government officials. The training
is scenario-based and it will be rolled
out in the first half of 2012.
We have introduced a tool to detect
excessive gifts and hospitality that
could lead to conflicts of interest in the
countries where our employees are
most likely to encounter corruption.
First introduced in China and India in
2011, we have now rolled the tool out
in Japan and the Asia Pacific region.
Strong due diligence procedures
remain in place for the appointment
and extension of any contracts with
third parties used in sales and
promotion roles, which are subject
to approval by the Chief Compliance
Officer. We have also introduced a
system in India and the Asia Pacific
region that enables regional
Compliance teams to monitor
employees expense claims including
those for gifts, entertainment, hospitality
and travel. The system will be
extended to all regions in 2012.
Human rights
We recognize our responsibility to help ensure that the communications technologies we
provide are used to respect, and not infringe, human rights. Our Code of Conduct spells
out our zero tolerance for the violation of human rights. This commitment is reinforced in
our human rights policy, which establishes due diligence processes to identify and address
relevant human rights risks across our global operations.
2011 Highlights
Implemented risk assessment and due diligence process in our sales process globally
Jointly initiated an industry dialog to develop common principles and due diligence
mechanisms on privacy and freedom of expression

Target
Progress in 2011
Status
Implement human rights due diligence process in line with the human
rights policy by the end of 2011
Due diligence process rolled out globally
Achieved
Train our sales, legal, procurement and R&D teams on the human rights
policy by the end of 2011
Staff in relevant roles in the Middle East and Africa were trained
face-to-face or via teleconference.
Ongoing
Future targets
Target
Target date
Contribute to the development of common industry guidance and tools on human rights, freedom of expression and privacy
through the industry dialog established in 2011
End 2012
Train our sales, legal, procurement and R&D teams globally on the human rights policy
End 2012
Performance in 2011
Training in 2011
90%
1
Risk assessment and due diligence

of employees trained on
human rights issues1
Number of potential sales identified as high risk for human rights
10
Number of sale offers declined following due diligence
Human rights is covered in our ethical business conduct training
Ten potential sales opportunities

were identified through our new due
diligence process as high risk for
human rights. We were able to
address these risks for seven of these
opportunities, but chose not to pursue
the remaining three as a result of these
findings.
23
Technology has turned our world

into one interconnected
neighborhood. What happens in one
place is seen in every corner, and
there has been no better time for
the spread of peace, democracy
and their attending social justice
and fairness for all.
Ellen Johnson Sirleaf,
President of Liberia
Sales team: provides background on proposed sale and

customer
Legal team: considers possible mitigation measures, and
evaluates export control restrictions and specific license
requirements
Product managers: advise on technical features to prevent
human rights abuses
Government relations: provides information on international
relations issues
Marketing and communications: undertakes a reputational risk
analysis
Strategy
Activity in 2011
Nokia Siemens Networks is committed

to supporting human rights, including
free expression, privacy, and access
to information. In line with our human
rights policy, we carry out extensive
risk assessments and due diligence
internally. We are also working with
others to ensure respect for human
rights across the industry.
We took significant steps to embed

our human rights policy in our daily
operations by integrating a due
diligence process into our global sales
platform to help us identify and assess
potential risks. We also opened an
industry dialog with peer companies to
develop a joint approach to decisionmaking on human rights issues. These
measures will help us implement the
new UN Guiding Principles on
Business and Human Rights which
we endorsed in June 2011.
We strongly believe that

communication networks have an
important role in promoting human
rights by enabling free expression,
access to information, exchange of
ideas and economic development.
Use of telecommunications during the
Arab Spring demonstrations in 2011
showcased the positive role that these
technologies can play. But the same
event also demonstrated how
repressive regimes can misuse these
same communications technologies
(see box on Bahrain, page 25).
We condemn any abuse of
telecommunications networks
to limit human rights.
24
Due diligence process:

Key steps and responsibilities
Due diligence
As a supplier to telecommunications
operators, Nokia Siemens Networks
has very limited influence on the use
of our products after their sale so we
are concentrating our efforts on the
pre-sale process.
In 2011, we strengthened our internal
processes for identifying and assessing
potential risks of our products being
misused to infringe human rights.
Central to this effort was the global
rollout of an impact assessment and
due diligence process to enable us to
make an informed decision on whether
to proceed with a sale or not.
We believe this goes further than any
other telecommunications company.
Our approach starts with our sales

agents (see box on key steps and
responsibilities in the due diligence
process). They feed information about
any potential deal into our global sales
platform, which includes an automated
system to assess the potential for
misuse of our technology (see decision
map chart). Depending on the type of
technology for sale and the human
rights record of the purchasing country,
a warning flag will be issued for high
risk cases which initiates a review
process. This involves a detailed
analysis and risk assessment of the
sale in question.
We believe it is important for
accountability on human rights to be at
a regional level because this is where
our sales take place. The due diligence
process is overseen by our
government relations team within each
region. Recommendations made by a
committee comprising representatives
from regional government relations,
sales, legal and compliance, product
management, solutions management
and communications teams are then
passed to the head of sales in the
region. If there is any remaining doubt,
the case is escalated to a group within
the Nokia Siemens Networks
Executive Board for a final decision.
If we judge that the risk of potential
product misuse is too high, we will
decline the opportunity of a sale.
In 2011, we decline three potential
sales as a result of the due diligence
process.
Steps 1&2 automated in Common Sales Platform (CSP)
Decision map: When do cases require

human rights due diligence
No
1. Is the customer
based in a country
listed as high risk?
Yes
No
2. Is the
product/technology
listed as high risk?
Yes
Yes
3. Has the human rights

due diligence process
been carried out and can
the risks related to this
sale be mitigated?
Pop up to
CSP user:
Human rights
due diligence
may be required.
Notification sent
to relevant teams.
No
Yes
4. Escalate to higher
level of authority for
assessment/approval
GO
NO GO
Privacy
We understand that people are
increasingly concerned about the
potential of telecommunications to
infringe their privacy. Our aim is to be a
privacy-aware company that adheres
to strict standards and provides
solutions that help our customers
better protect consumer privacy.
In 2010, we established a Privacy
Practitioners Network comprised of a
group of privacy experts from across
the company to share best practice.
Following the development of our
Product Privacy Policy in 2011, we
trialed the new process to ensure
privacy considerations are integrated
into the design of our products working
on the pilot product line. This work has
led to the group revising their product
privacy guidelines, an effort that is still
ongoing.
Nokia Siemens Networks continues to

engage with industry and regulators on
privacy and security issues through, for
example, the Internet Engineering Task
Force (IETF), the Internet Architecture
Board (IAB), and the Privacy and
Security Working Group of the
Massachusetts Institute of Technology
(MIT). In 2011, we organized a meeting
with other telecommunications
companies on Privacy 2.0 in
partnership with MIT, and a week-long
workshop on online privacy with the
Schloss Dagstuhl Leibniz Center for
Informatics in Germany. We co-chair
the MIT Privacy and Security working
group and regularly participate at the
meetings of the International Working
Group on Data Protection in
Telecommunications.
Case study
Working with others
Bahrain
Engaging with stakeholders about

human rights helps us understand their
perspectives and keep up-to-date
about current best practice. This also
feeds into the development of our own
policies and practices.
Press reports in August 2011 linked Nokia Siemens

Networks with human rights abuses in Bahrain during
the Arab Spring. The allegations focus on the misuse of
a monitoring center supplied by a Siemens business.
According to the news agency Bloomberg, the center was
used to intercept mobile phone messages from antigovernment activists. We have stated clearly that such
abuse, if it has occurred, is wrong and is contrary to
accepted international norms and our Code of Conduct.
Collaboration with others in our sector

is critical. We believe that Nokia
Siemens Networks is currently the
only supplier of telecommunications
equipment that is restricting sales
based on human rights impact
assessments. We would like others to
follow suit. In 2011, we jointly initiated
an industry dialog on human rights
with other companies to work together
with other stakeholders to develop
common principles, tools and due
diligence mechanisms to ensure the
respect for privacy and freedom of
expression across the industry.
The business responsible for the sale of the monitoring

center became part of Nokia Siemens Networks when the
company was formed in 2007. However, we divested this
business in March 2009 more than two years before the
alleged incident. Nokia Siemens Networks no longer
provides this technology in any country.
Open dialog with governments about

human rights has also been a key
focus in 2011. We presented our
human rights policy to policymakers in
Finland and at European Union level,
emphasizing that we are going beyond
our legal requirements in this area.
25
Suppliers
We set high standards for our suppliers on sustainability issues. Health and safety,
labor conditions and environmental management are key focus areas for our supplier
audits and training, and we collaborate with others in our industry to improve sustainability
performance throughout the supply chain.
2011 Highlights

17 in-depth supplier audits, up from 13 in 2010

Seven sustainability workshops, training 76 suppliers in five high-risk countries
72% of procurement staff trained in sustainability
100% Global Services procurement staff trained in health and safety
54 key suppliers reported greenhouse gas emissions through the Carbon Disclosure Project
Launch of Occupational Health and Safety Supplier Requirement in August 2011 as part
of all the contract agreements with our services suppliers.
26
Target
Progress in 2011
Status
Conduct in-depth audits on labor conditions

and environmental management of 16
suppliers by end 2011
17 in-depth supplier audits conducted
Achieved
Increase the number of auditors qualified to

conduct in-depth audits to eight by end 2011
No further auditors trained in 2011. This target will not be continued for 2012, due to changes
in the business. Despite the auditor numbers not going up, the number of audits increased.
Not achieved
Roll-out industry training to suppliers

on worker-management communication
and occupational health and safety (OHS)
in high-risk regions by end 2011
Worker-management communication training piloted with suppliers in Malaysia; industry

training on health and safety has not been rolled out further but this issue continued to be a
key focus in our own supplier workshops. We continued integrating OHS into our own supplier
workshops as well as OHS training centers. We shared our own training materials with the
industry group, and contributed intensively in creating the industry wide training material with
peer groups. The industry training was not launched, for reasons which were out of
Nokia Siemens Networks' control.
Partially achieved
Conduct at least six supplier workshops in

high-risk countries by end 2011
Seven supplier workshops held in five high-risk countries
Achieved
Roll out Carbon Disclosure Project (CDP)

tool to track suppliers progress on energy
efficiency by end 2011
92 key suppliers invited to report energy use and carbon emissions via the CDP - 54 have
done so
Achieved
Develop our internal process for reporting

supplier audit findings on a regional and
global level by end 2011
Progress made in some regions to align regional health and safety audits with our global audit
framework. Escalation of audit findings from the regional team to the Global Procurement
through much strengthened communication and cooperation with Global Services Health & Safety.
Partially achieved
Ensure that 80% of employees in our Global

Procurement organization have received
training on sustainability by end 2011
72% of Global Procurement employees trained on sustainability; training continued in 2011 but
we have not met the target due to changes in personnel, with new employees joining as a
result of the acquisition of Motorolas network solutions business.
Not achieved
Ensure that suppliers representing at least

20% of our procurement spend have joined
E-TASC by end 2011
Suppliers representing 17% of procurement spend have now joined E-TASC; progress limited
due to problems with the launch of the updated tool
Not achieved
Future targets
Target
Target date
Roll out our revised Supplier Requirements in all new contracts and begin a phased upgrade of existing contracts
End 2012
Work with suppliers to ensure all open audit findings are addressed
End 2012
Invite a further 50 suppliers to report their energy use and greenhouse emissions via the CDP
End 2012
Pilot a web-based workshop for suppliers
End 2012
Continue to train procurement staff on sustainability
End 2012
Roll out industry due diligence process on conflict minerals, initially focusing on suppliers using tantalum
End 2012
Performance in 2011
Supplier spend by region1
North East
10%
North America
10%
West & South
Europe 32%
China
19%
Latin America
6%
India
5%
Middle East
& Africa 4%
APAC
10%
Calculated based on which country the ordered service of product is provided from.
The total does not add up to 100% as around 4% of our purchasing spend is not assigned to a particular region
1
Supplier audits
Supplier audits conducted by Nokia Siemens Networks
2007
(April-December)2
2008
2009
2010
2011
Total to date
In-depth audits focused on labor

conditions and environment
13
17*
48
Occupational health and safety audits

for services suppliers
N/A
N/A
N/A
51
45
96
On-site system audits against our

supplier requirements
37
103
147
108
121*
516
Nokia Siemens Networks was established in April 2007
27
Findings of in-depth audits on labor conditions and environmental management in 2011

Category
Number of
non-conformities identified
Number of potential
risk areas identified
Total number of
recommendations
for improvement
Child labor (proof of age documents missing)
Forced labor
Health and safety
74
43
117
Freedom of association and right to collective

bargaining
Discrimination
Disciplinary practices
Working hours
13
Remuneration
22
26
Management systems
69
27
96
Environmental management system
23
29
Total
204
96
300
In 2011, our audits found an

increasing number of issues related
to migrant workers rights, particularly
in the Middle East and Asia.
Examples include:
In 2011, we conducted in-depth audits

of 17 suppliers in China, India,
Malaysia, Nigeria, South Africa and
Taiwan selected based on our risk
assessment process and other factors.
These focus on labor conditions and
environment. The area most commonly
identified for improvement continued to
be health and safety. Many suppliers
also need to improve management
systems on human resources and
environment, and almost half need
to improve management of their own
suppliers. While we found no instances
of child labor, some suppliers need
to improve management systems to
ensure workers ages are documented.
28
Non-conformities identified
Recommendation for improvement
Supplier retains foreign workers passports to

keep them secure in their custody. There is no
strong procedure for immediate and easy
access to passports in case of an emergency
that may prompt immediate return to the home
country.
Supplier must establish a strong procedure to

ensure speedy handover of passports whenever
required by employees, and communicate this
procedure to all employees. Supplier must
provide a secure place for employees to store
their passports and other important documents.
Foreign workers have two different contracts: the

agreement signed in the home country includes
free food and accommodation; the agreement
signed in the country of employment (the one
used in practice) states that a significant portion
of the workers monthly pay will be deducted for
food and accommodation.
Supplier must ensure that terms and conditions

are consistent in contracts signed in the home
country and country of employment.
Migrant workers have to pay a large proportion

of their wages to agents.
Supplier must ensure that workers do not pay

any recruitment fee to agents. Such fees must
be paid by the employer.
In addition to these specialized audits,

we conducted 1,711 evaluations of
supplier performance (including
sustainability criteria) as part of our
ongoing supplier relationship
management. New suppliers are
also subject to system audits to
check compliance with our
Supplier Requirements through
self-assessments and on-site audits.
24
of our suppliers
have joined
E-TASC to date,
representing 17% of
our purchasing spend*
E-TASC a common supplier

assessment tool set up by the
Global e-Sustainability Initiative and
the Electronics Industry Citizenship
Coalition is designed to reduce the
burden on suppliers by creating a
single set of assessments and audits,
sharing the results with all participating
customers. While we have continued
to encourage suppliers to use this tool,
technical difficulties with the launch of
the new version in 2011 have delayed
new suppliers joining.
Training
Supplier workshops
Training for procurement staff

2008
2009
2010
2011
Total to date
Number of suppliers participating in Nokia Siemens Networks

sustainability workshops
16
54
76*
151
Number of management level supplier workers participating

in Nokia Siemens Networks sustainability workshops
11
33
103
115*
262
72%
of our procurement staff

have received sustainability
training to date*
96%
of procurement staff
completed online ethical
business training in 2011*
Industry training
2010
2011
Number of Nokia Siemens Networks suppliers participating in

GeSI/EICC online sustainability training
52
71
Number of Nokia Siemens Networks supplier workers participating in

GeSI/EICC online sustainability training
74
86
We held seven workshops on

sustainability issues for 76 suppliers
in China, India, Nigeria, South Africa
and Taiwan to reinforce our Supplier
Requirements as well as focusing on
specific challenges and best practices
for health, safety and labor. In 2012,
we will pilot a web-based workshop
to enable us to reach more suppliers
while reducing environmental impacts
from travel.
Three of our suppliers in the Malaysian

state of Penang also piloted industry
training in 2011 on effective
worker-management communications
(developed through the GeSI/EICC
Supply Chain Working Group).
In 2011, we held seven training
sessions on sustainability for 114
procurement staff (including former
100%
of Global Services
procurement staff are
trained on occupational health and safety
Motorola employees) and held

additional training sessions for the
procurement teams in Services.
This training was delivered through
interactive online and teleconference
sessions. Procurement staff, like all
employees, are also expected to
complete annual online ethical
business training.
Suppliers and the environment
54
suppliers, representing
28% of spend, report
their greenhouse gas
emissions through the Carbon
Disclosure Project
30
suppliers, representing
17% of spend, have
set targets to reduce
environmental impacts*
We invited key suppliers to report their

energy and climate impacts through
the Carbon Disclosure Project (CDP).
Those participating achieved a higher
than average score for disclosure
(54%, compared with an average
of 47%) and performance (34%
compared with an average of 29%)
for global suppliers participating in
the CDPs Supply Chain Program.
According to their CDP responses,
31 suppliers had set targets to reduce
their environmental impacts by the end
of 2011. We will work with the CDP to
analyze and monitor progress against
these targets, and encourage suppliers
who have not yet set targets to do so.
60%
of applicable top
350 suppliers by
spend have a documented
environmental management
system (EMS) aligned with
ISO 14001 for sites supplying
All our suppliers (except those with

very low environmental impacts) must
have a documented environmental
management system (EMS) and, for
key suppliers and those with higher
impacts, this must be certified to
ISO14001. However, it is unlikely that
we would achieve 100% EMS
coverage at any given time because
new suppliers or sites are continually
added and it typically takes between
12 and 18 months to develop an EMS
for each site.
55%
of applicable top
350 suppliers
EMS are certified to ISO14001
Supplier diversity
There are regulations on supplier
diversity in two of our markets:
the US and South Africa.
In the US, 2% of our procurement is
spent with minority businesses as part
of our supplier diversity program.
In South Africa, 25% of our
procurement is spent with Black
Economic Empowerment suppliers.
29
Supplier survey
Overall, how would you rate Nokia Siemens
Networks requirements on business ethics
when dealing with suppliers
2011
2010
2009
2008
2011
2010
2009
2008
2011
2010
2009
2008
2011
2010
2009
2008
2011
2010
2009
2008
2011
2010
2009
2008
Nokia Siemens Networks other business

expectations do not force them to compromise basic
ethical and environmental level of compliance
Nokia Siemens Networks communicate its
environmental requirements clearly
Environmental issues are important to Nokia
Siemens Networks when dealing with suppliers
Nokia Siemens Networks communicates its ethical
and labor condition requirements clearly
Labor condition issues are important to Nokia
Siemens Networks when dealing with suppliers
0
10
Strategy
Activity in 2011
Our robust Supplier Requirements

include clear expectations on ethical,
labor and environmental issues for all
suppliers. We communicate our
requirements and monitor compliance
through audits of suppliers identified
as high-risk. We work closely with
suppliers to improve their management
of sustainability issues and encourage
them to do the same with their own
suppliers.
We updated our Supplier Requirements,

strengthened our focus on safety in
the supply chain and engaged with
suppliers on environmental impacts.
Workshops in high-risk countries raised
awareness of our sustainability
requirements and more in-depth audits
helped us assess and address any
areas of non-compliance. Following
the acquisition of Motorolas wireless
network infrastructure business,
procurement staff joining the company
were required to complete
sustainability training and we have
integrated former Motorola suppliers
into our supplier management and
audit programs.
The focus of our audits and

engagement is on direct suppliers
those providing products and services
that we sell to our customers
because they represent the majority of
our purchasing spend and the highest
risk to our business.
Collaboration through the Global
e-Sustainability Initiative (GeSI)
and Electronics Industry Citizenship
Coalition (EICC) enables us to help
raise standards across the industry
and tackle sustainability issues further
down the supply chain more effectively.
Integrating sustainability
in supplier management
processes
Sustainability criteria are integral to our
Supplier Requirements, which apply to
all suppliers, and were updated in 2011
to include new policies on conflict
minerals and human rights. The revised
Requirements will be rolled out in 2012.
We have also integrated a bespoke
sustainability risk index into our
supplier risk management processes.
This index is tailored to high-risk
countries identified using Maplecrofts
Global Risks Portfolio. Procurement
teams use it as part of their process
to assess and select new suppliers.
They receive training on managing
sustainability in the supply chain and
its importance to our business.
30
In June 2011, 330 suppliers

(new and existing, representing all
regions and categories) were invited
to take part in our annual supplier
satisfaction survey. The level of
positive responses either remained
constant or improved on all questions
related to sustainability, and our overall
rating in this area increased to 8.1 out
of 10 (compared with 7.8 in 2010).
Our increase in the number of staff

dedicated to sustainability in the supply
chain will enable us to pursue our
objectives in this area more vigorously
in 2012.
Contractor health and safety

Health and safety is a key part of our
requirements and audits of all suppliers,
but it is particularly critical for
contractors working in our Global
Services business the business with
the highest safety risks (see Safety,
page 32). In 2011, we introduced
detailed requirements on occupational
health and safety for Global Services
suppliers and trained procurement staff
in that part of the business to ensure
they understand this requirement and
can communicate it clearly.
Training for contractors ensures they
understand our health and safety
systems and emphasizes that strong
safety performance is critical for them
to continue working with Nokia Siemens
Networks. Raising awareness of our
requirements is particularly important
among smaller subcontractors in highrisk countries. We provide training for
contractors tailored to each region,
often providing the same training as
for our own employees (see box).
In 2011, 15 of the 17 in-depth audits
we conducted were of services
suppliers and health and safety was
a key focus. We also conducted 42
additional health and safety audits
of services suppliers in high-risk
countries, as well as regular site
inspections as part of our routine

project management. If we find
instances of non-compliance and the
supplier in question fails to change its
behavior, we escalate the issue to
senior managers and stop working with
the supplier until the issue is resolved.
We are developing a tool to ensure that
all incidents of non-compliance are
reported centrally so procurement
teams can use this information as part
of regular supplier performance
reviews.
Labor rights
Working hours remains a key issue
for manufacturing suppliers. Although
our audits found relatively few nonconformances related to this in 2011,
overtime was excessive in some of
these cases. We have also found an
increasing number of infringements of
migrant workers rights by suppliers,
particularly in the Middle East and Asia.
This challenge is common to many
industries operating in these regions
and we are working through the
EICC/GeSI Supply Chain Working
Group to address this issue through,
for example, industry training to raise
awareness of workers rights.
Suppliers and the

environment
We have increased our focus on
environmental impacts in the supply
chain. In addition to our requirements
on environmental management
systems, we are encouraging key
suppliers to report their energy use and
climate impact through the Carbon
Disclosure Project (CDP) Supply Chain
Program.
We asked 92 key suppliers to report
via the CDP in 2011. Of these, 54 have
already done so (representing 28% of
our purchasing spend) and others plan
to in 2012. The CDP report shows that
our suppliers achieved higher than
average scores for both disclosure and
performance compared with global
suppliers participating in the program.
This initiative builds on our existing
energy efficiency program, using CDP
reporting to help us better understand
suppliers impacts and track their
progress on energy efficiency.
Conflict minerals
Conflict minerals, mined in countries
such as the Democratic Republic of
Congo, are the subject of new US
legislation introduced in 2011, due to
stakeholder concerns that they are
fuelling conflict and associated human
rights abuses. Our policy on conflict
minerals clearly states that we do not
accept their use in our products. We
have updated our Supplier
Requirements to include a commitment
to this policy, which was developed in
2010.
Suppliers of minerals used to produce
tin, tantalum, tungsten and gold
(metals associated with conflict
minerals) are several tiers removed
from Nokia Siemens Networks in the
supply chain. To influence suppliers
further down the chain, our zero
tolerance policy on conflict minerals
requires suppliers who manufacture
components containing these metals
to adopt a similar policy for their own
suppliers.
We also support industry efforts to

identify conflict-free minerals by
tracing metals back to smelters and
from there back to individual mines.
Nokia Siemens Networks is part of the
EICC/GeSI Extractives Working Group
and we are participating in its ConflictFree Smelters program. This program
aims to certify smelters that can
demonstrate minerals do not come
from conflict regions, and enable
suppliers to trace the source of metals
back to these smelters through a due
diligence process. To date, a list of
11 conflict-free tantalum smelters has
been published and further smelters
are being assessed.
Our initial focus is on tantalum
suppliers. We have communicated our
policy on conflict minerals to 25 key
suppliers identified as using tantalum in
their components and they have all
confirmed that they do not use conflict
minerals. In 2012, we will ask these
suppliers to participate in the industry
due diligence process, as well as
beginning to roll this out to suppliers
that use other metals such as tin.
Case study
Contractor safety in the
Middle East and Africa region
Our Global Services business introduced a series
of measures in 2011 to improve health and safety
performance among contractors in the Middle East and
Africa region. Since January, more than 70 contractors
have completed an induction program on health, safety
and environment, which we are also offering as a service
for our customers. Working at heights was identified as a
key risk, and all employees and sub-contractors working
on towers in the region have been trained to use safe
procedures.
Suppliers have been made aware of our safety
requirements and if we find any serious non-compliance
issue during site inspections, we will stop work and close
the site until the supplier demonstrates that remedial
action has been taken. Our three strikes and you are out
policy, introduced in 2011, means that if this occurs three
times with the same supplier we will stop all projects with
that supplier.
31
Health and safety

Installing and maintaining telecommunications equipment can be hazardous work for our
employees and contractors. Protecting them with the right procedures, equipment and
training is critical to avoid safety incidents. We aim to demonstrate leadership in health
and safety to ensure our customers can trust the way we work.
2011 Highlights
Health and safety management system rolled out throughout Global Services business
OHSAS 18001 certification achieved in four more countries, bringing the total to 14
Roundtable established to share safety best practice across the company

Target
Progress in 2011
Status
Achieve zero fatal accidents by collaborating closely with our

customers and contractors
Collaboration with customers continues in an ongoing effort to reduce

major incidents.
Ongoing
Continue the International Safety Rating System (ISRS)

deployment by defining health and safety risk category for all
sites with more than 50 employees
Health and safety risk category defined for all sites and health and safety action plans
in place for all sites with more than 50 employees.
Achieved
Implement a program on leadership and awareness of health

and safety
Global program being implemented including personal statements from senior leaders
demonstrating their commitment to health and safety initiatives.
Partially achieved
Achieve OHSAS 18001 certification in four additional

countries
Certification achieved in four additional countries: Italy, Mozambique,

Tanzania and the UK.
Achieved
Increase coverage of incident data reported across the

business
Centralized incident reporting tool fully implemented across the business

and tied to overall risk management and reduction. Incident data now
covers 100% of the business.
Achieved
Future targets
32
Target
Target date
Establish a Major Accident Prevention Plan to decrease the number of major accidents by collaborating closely with our customers,
contractors and business units
Ongoing
Align health and safety management system to achieve the maturity for global certification to OHSAS 18001 for all
Nokia Siemens Networks operating countries
2013
Continue to consolidate incident reporting by increasing the number of near miss incidents reported
End 2012
Achieve zero fatal accidents by collaborating closely with our customers and contractors
Ongoing
Performance in 2011
In 2011, we recorded consistent global
health and safety data for the second
year, using a reporting system based
on the Occupational Safety & Health
Administration (OSHA) guidelines that
we introduced in 2010. We continued
to train health and safety teams to use
the system and the number of recorded
incidents has risen by 42% as a result.
Health and safety data now covers all
our operating countries, up from 61%
in 2010. We expect the number of
recordable incidents to increase further
in 2012 as we continue to raise
awareness of the importance of
reporting incidents, including near-miss
incidents, through our global system.
Health and safety performance

2010
2011
Total recordable lost-time incidents
118
160*
Total recordable incidents
151
214*
Recordable incidents in Global Services business
91
194*
2010
2011
Total number of employee fatalities
4*
Total number of contractor and subcontractor fatalities
9*
Fatalities
maintenance work on
telecommunication masts, and six
incidents occurred as employees
were commuting to or from work or
operating vehicles. Each fatality was
fully investigated and corrective actions
implemented. We are extremely
concerned about the increase in
fatalities this year. In 2011 we
introduced a new process for
investigating fatalities and ensuring
action is taken to prevent recurrence.

A panel of senior leaders and at least
one Executive Board member review
the details of each incident to identify
trends and recommend companywide
preventative actions. Our target to
introduce a Major Accident Prevention
Plan came out of this panel. The plan
will focus on three key areas:
accountability, performance
measurement and critical training.
Strategy
Activity in 2011
We identify and manage health and

safety risks through a robust health
and safety program, which is aligned
with the international standard
OHSAS 18001. Employees are trained
to recognize and avoid risks and report
incidents. Health and safety is included
in the mandatory annual training on
ethical business conduct for all
employees. We are raising awareness
of the importance of good safety
standards through the commitment
of our senior leaders and working
closely with contractors to ensure
they understand and operate to the
same high standards. Demonstrating
leadership in health and safety
improves our relationship with
customers and we collaborate with
them to improve safety management.
We focused on extending our health

and safety management system in
the Global Services business and
continued to work with contractors
and customers to improve safety
performance. We have made progress
towards our aim of companywide
certification to international standard
OHSAS 18001 and we established
new processes for learning from fatal
accidents and sharing best practices.
Health and safety in

Global Services
We deeply regret that two employees,

two directly supervised contractors
(total four) and nine contractors and
subcontractors died in 2011 while
working on projects for Nokia Siemens
Networks. Seven of the incidents
occurred as a result of falls from height
during installation and preventive
Employees and contractors working on

Global Services projects building and
maintaining base station towers face
the highest safety risks. They are often
working at heights, in confined spaces
or with electricity. Our health and safety
program sets guidelines, policies and
procedures for assessing and
managing health and safety risks. The
program was introduced in 2009 for the
most high risk part of our Global Services
business, Network Implementation
(constructing and installing base
stations). During 2010 and 2011, we
adapted the program for the remaining
two parts of Global Services Care
(maintenance and technical support)
and Managed Services (outsourced
network management).
33
Training employees and contractors is

a critical part of the program. Health
and safety teams across the business
are given regular web-based training
on different topics such as incident
reporting and managing contractors.
Senior leaders from our Global
Services business made statements
on the importance of safe working
practices and demonstrated senior
commitment to health and safety
across the business. The commitment
statements were used in health and
safety awareness sessions with
leadership teams from Global Services
and more widely in health and safety
training sessions.
Many of our Global Services projects
are in emerging markets, where
mobile networks are growing rapidly.
The work is often carried out by
contractors. We train contractors to
make sure they understand our health
and safety management system fully
(see Suppliers, page 26). Our safety
kit helps them assess safety risks and
design site-specific plans for managing
risks and monitoring performance.
We also work closely with customers
to improve health and safety
performance. In 2011, one of our
biggest customers, Vodafone,
audited our global health and safety
management system and conducted a
detailed audit at our site in Pune, India.
We were awarded the highest level
possible in this audit, demonstrating
that we have a mature management
system in place.
34
Case study
Improving near miss reporting to avoid accidents
The number of near-miss incidents reported at two Nokia
Siemens Networks sites increased dramatically following the pilot
of a new Safety Saves program. The communication program
introduced in India and Portugal in 2011 was aimed at all
employees, from engineers to office workers, to encourage them
to recognize potential hazards. We also introduced a new online
tool for employees to report near-miss incidents.
Recognizing hazards and reporting near-miss incidents helps
health and safety teams take corrective actions and prevent
serious incidents in future. For example, in Portugal an employee
reported they had almost slipped on steps into the office car park
due to inadequate lighting. New lights were installed to prevent
accidents on the steps in future. The Safety Saves program will
be rolled out globally in 2012 to promote near-miss incident
reporting across the whole company.
Improving safety
management
Our health and safety management
system is aligned to the international
standard, OHSAS 18001 and we aim
to achieve further certification to this
standard in 2013. Two of our eight
factories in Shangai, China, and
Kolkata, India have achieved
certification to OHSAS 18001.
In 2011 we achieved OHSAS 18001
certification in four more operating
countries: Italy, Mozambique, Tanzania
and the UK, bringing the total number
of certified countries to 14.
We continued applying the
International Safety Rating System
(ISRS) framework to help us assess
the maturity of our safety management
processes and identify areas for
improvement to help us meet our goal
of global certification to OHSAS 18001.
In 2011 we completed risk

assessments for all sites with more
than 50 employees and put site-level
action plans in place for improving
procedures. In 2012 we will continue
raising health and safety standards
across the 160 countries where we
work, in preparation for achieving
OHSAS 18001 compliance in 2013.
In addition, we completed internal
assessments at six factories that are
working towards OHSAS 18001
alignment. Our factories in Beijing and
Suzhou (China), Berlin and Bruchsal
(Germany), and Oulu (Finland)
achieved a score comparable to ISRS
Level 7 (the highest level) and our
factory in Chennai (India) achieved a
score comparable to ISRS Level 3,
with a Level 7 assessment planned for
2012.
Health and safety incidents are

monitored and recorded through our
global reporting system. In 2011 we
introduced monthly performance
reports for discussion at senior
management meetings so that
managers are aware of and able to
communicate health and safety trends,
major incidents and examples of best
practice. By analyzing past trends in
safety incidents, we identified two
areas for improvement: driving and
road safety, and working from heights.
A major accident prevention plan will
be implemented in 2012.
We share examples of best practice
both internally and externally.
In 2011 we introduced monthly safety
roundtables where regional heads
for health and safety discuss incident
reports and trends, global safety
programs and examples of safety
initiatives that have worked well in their
region. We also share best practice
externally in the countries where we
operate. For example, in October,
we demonstrated our health and safety
management policies and procedures
at the Asia-Europe Meeting on
Occupational Health and Safety
exhibition in Yogyakarta, Indonesia.
We also founded the
Telecommunications Industry
Occupational Health and Safety
Network in Indonesia, with five peer
companies. The network aims to
share best practice and work with
stakeholders including the government
to set high standards for health and
safety across Indonesia.
Case study
Health and safety training saves lives in India
We are working hard to make sure that safety training and
personal protective equipment (PPE) is business as usual
for our employees and contractors. Our efforts pay off when
potentially serious accidents are avoided. In 2011, for
example, the lives of two engineers were saved when they
fell from a height of 40 meters while working on a
telecommunications tower in Rajahmundry, India. The
engineers were contracted by Nokia Siemens Networks
to maintain a tower at one of our customers sites.
The engineers climbed the tower to fix some faulty
equipment but an object slipped and knocked them from
their positions, causing them to fall. As a result of extensive
training and the correct use of their lanyards and harnesses,
they escaped unharmed. Following the incident, one of the
engineers said we went to the top of the tower with
PPE and we both wore harnesses so we are saved.
Thanks to Nokia Siemens Networks for providing
safety tools and training.
35
Employees
Our business is changing and this transformation will have an impact on many of our
employees. We want our staff to feel engaged with our new business strategy, feel valued
for the work they do, and have the skills to lead and support future business success.
We provide safe, fair and equal working conditions for our employees and we follow
global standards for labor conditions.
2011 Highlights

Announced a new business strategy and restructuring that will impact 17,000 employees during 2012 and 2013
Recorded 70% employee engagement score in our employee survey, down three points
54% of employees have a Personal Development Plan
Trained a further 6,119 employees in Service Excellence, bringing the total trained to more than 18,000
Launched a pilot program to implement our Global Labor Standard in Brazil, China and India

Target
Progress in 2011
Status
Achieve an employee engagement index of 75%
Our employee engagement score declined to 70%, largely as a result of the

transformation announcement a week before starting the survey
Not achieved
Improve gender balance in our senior management
Women represent 11.5% of senior management, slightly up from 11% in 2010
Achieved
Ensure all line managers have participated in Consistency in Leadership

workshops
The Consistency in Leadership workshops were not pursued in 2011 due to

the focus on cost reductions
Not achieved
Train a further 6,500 employees in Service Excellence
6,119 more employees trained in Service Excellence; target was revised to

5,500 in the third quarter of 2011 due to the focus on cost reductions
Achieved
revised target
Continue raising awareness of labor conditions with a focus on high-risk

countries by using the Maplecroft country risk index to systematically
categorize sites by level of risk, focusing on health & safety.
Pilot program launched to implement our Global Labor Standard in Brazil,

China and India, countries identified as highest-risk using Maplecroft country
risk index
Achieved
Future targets
36
Target
Target date
Increase employee engagement by two percentage points
End 2012
Train a further 1,000 employees in Service Excellence through two day face-to-face workshops
End 2012
Achieve employee support of 67% for our future direction, measured through a combination of questions in our employee survey
End 2012
Performance in 2011
Employee engagement
Workforce profile1
Employee engagement index

2010
2011
Total number of employees at 31 Dec
66,160
73,529
Part time employees (% of total workforce)
2%
2%
Full time employees (% of total workforce)
98%
98%
80%
Employees in production
2,081
2,244
70%
New employees
11,788
17,228
60%
Total number of leavers
9,508
10,534
50%
Voluntary leavers
5,974
6,919
40%
Yearly employee turnover of voluntary leavers
9.4%
9.9%*
30%
Leavers through voluntary severance package
683
302
Involuntary leavers
3,534
3,615
Leavers through common agreement
853
610
Leavers through outsourcing and divestments
407
386
100%
90%
73%
73%
September
2010
April
2011
71%
70%
20%
10%
0%
March
2010
December
2011
All workforce profile data include the former Motorola employees who joined
Nokia Siemens Networks in May 2011 following the acquisition of Motorolas
wireless internet business. The number of employees transferred from Motorola
was approximately 6,900.
1
Employee engagement survey (% positive responses)

Employee Engagement
Survey
(September 2010)
Employee Engagement
Survey
(April 2011
interim pulse survey)
Employee Engagement
Survey
(December 2011)
I strongly believe in the goals and objectives of Nokia Siemens Networks
71
72
66
I fully support Nokia Siemens Networkss values
86
90
84
I understand how I can help Nokia Siemens Networks achieve its goals
83
86
80
I would recommend Nokia Siemens Networks to a friend as a good place to work
60
56
48
I am proud to tell others I work for Nokia Siemens Networks
69
64
63
Nokia Siemens Networks inspires me to do my best work
63
65
59
I am passionate about what we do at Nokia Siemens Networks
62
63
64
I am personally motivated to help Nokia Siemens Networks be successful
84
84
86
I fully apply my skills and abilities to my work
79
77
80
Employee engagement index
73
73
70
Think
Feel
Act
The Employee Engagement Index

measures employees emotional,
rational and motivational commitment
to the company. Engagement
remained constant at 73% in the
interim pulse survey in April 2011 but
several scores decreased significantly
in the full survey in December, when
approximately 84% of employees
responded. The survey came shortly
after the transformation announcement

that will affect our workforce
significantly in 2012 and 2013.
We are encouraged by responses
to questions about the announced
changes, which show that most
employees believe in the strategy and
the ability of managers to implement
them.
37
Training and development
During 2011 we had a strong focus on

cost reduction, and that, together with
increasing awareness of the
environmental impact of travel, resulted
in a decline in formal face-to-face
training and our total training
expenditure. We focused on promoting
our 70-20-10 development approach
through which 70% of employee skill
In 2011, 54% of employees had a

Personal Development Plan, agreed
with their line manager, outlining how
they will work towards their personal
and career development aspirations
in the short and long term
(down from 76% in 2010).
Training days and spend
2010
2011
Total amount of training days provided by our Academy
162,646
118,563
Average number of training hours per employee
14.8
9.9
Total expenditure on training (including travel costs)
57m
54.1m*
Average training expenditure per employee
900
815*2
Number of employees who participated in leadership training
530
1,201
development comes from learning on

the job, 20% from self study, coaching
and mentoring, and 10% from formal
learning programs. We continued to
promote informal learning and
knowledge sharing among employees.
Leadership training was a focus in
2011 and the number of participants in
our leadership training programs
increased, including on our License to
Lead program. Around 41% of training
courses provided by Nokia Siemens
Networks in-house Academy were
completed online.
Academy staff have been excluded from headcount when calculating the expenditure per employee.
Diversity
Gender balance in 2011 (%)
100%
Total employees
90%
Line managers
80%
Senior Management
70%
12%
13%
19%
88%
87%
81%
13%
20%
11%
19%
30%
89%
40%
88%
50%
81%
60%
10%
0%
Male
Female
Male
Over 150 nationalities are represented

in our workforce and the proportion of
senior leaders who are not from our
parent companies home countries
(Finland and Germany) continues to
grow. In 2011, the proportion of senior
leaders who are Finnish declined by
3.5% and those who are German by
2%. The proportion of women in our
senior management increased slightly
from 11% to 11.5%.
Female
Employees and senior leaders by nationality in 2011 (%)5

15%
16%
2%
5%
4%
7%
West South Europe

25%
North East
North America
3%
Middle East and Africa
5%
13%
6%
25%
2%
11%
Latin America
Germany
Finland
China
10%
16%
11%
Total employees
38
1%
2%
21%
Senior management
Employees with one or more subordinates
Represents approximately top 400 employees
Self-declared nationalities by employees by regions and the two home countries of the company, Finland and Germany
Asia Pacific (incl. Japan)

India
Strategy
We will fully support our people
through the restructuring of our
business and treat those affected with
respect and dignity, while developing
employees capabilities to adapt to the
changes. We recognize the value that
diverse experiences bring to our
business and we promote collaboration
and knowledge sharing. Promoting
leadership skills is a key focus. Our
commitment to safe and fair working
conditions is set out in our Global
Labor Standard and we are embedding
this standard across the business.
Activity in 2011
Our workforce has undergone
significant changes in 2011 with the
acquisition of Motorolas wireless
network infrastructure business and
the announcement of further
restructuring and redeployment of
staff planned for 2012 and 2013.
We took steps to make employee
communications more relevant and
engaging in 2011 and we continued
our focus on supporting personal
development and promoting leadership
skills, although training expenditure
declined due to our focus on cost
reductions.
Protecting the rights of workers
remains a priority for our business
and we ran a pilot program in three
countries to implement our Global
Labor Standard.
Change and restructuring

In November 2011 we announced a
change in business strategy and our
intention to focus on mobile broadband
and services (see Who we are and
what we do, page 4). This will have
a significant impact on our global
workforce with a reduction in
headcount of 17,000 by the end of
2013 and major restructuring of the
existing business. The planned
workforce reductions are part of a
wider realignment of the business
including consolidation or transfer of
some sites and functions, simplified
company processes and other
efficiencies.
Redundancies on this scale are

extremely regrettable and we will offer
as much support as possible to
affected employees during the
transition. We are consulting with
employee representatives and local
Works Councils where needed, and
we will communicate clearly with
employees about the changes that
affect them throughout the two-year
restructuring process. We are meeting
country-specific legal requirements to
find socially responsible means of
reducing our workforce and helping
affected employees.
We also recognize the need to support
staff who stay with Nokia Siemens
Networks as we reposition our
business. Our global employee

programs will focus on developing
peoples capabilities so they feel
equipped to cope with change and able
to deliver our new business strategy.
Building leadership skills on change
among managers at every level of the
company will help them lead their
teams through the transition program.
Following the acquisition of Motorola
Solutions wireless network
infrastructure business in 2011,
approximately 6,900 new staff joined
Nokia Siemens Networks. However,
further restructuring plans were needed
for certain parts of the business due to
the weakening business conditions
(see box).
Case study
Motorola integration and restructuring
We welcomed approximately 6,900 employees from Motorola
Solutions to our business in 50 countries. The majority work in
China, India, Japan, the UK, and the US.
We offered a wide range of support to integrate new staff
members and help them feel part of the company from day one.
They took part in an induction program to help them understand
how to work at Nokia Siemens Networks and were invited to
information sessions with senior managers. A dedicated section
of the intranet offered information about Nokia Siemens
Networks products, processes and tools, cultural values and
practical guidance on using our systems.
In addition to general support, there was also function-specific
support available for several teams. For example, customer
facing employees received a detailed toolkit to help them
quickly adapt to the company processes and find the right
contacts and links to various resources. We also required those
joining the company to complete online training courses,
including training on ethical business conduct.
See box on page 40 for more on Motorola Cultural Integration.
Unfortunately some restructuring was necessary due to lower
demand for products and services from WiMAX and GSM
businesses caused by the delay in closing the acquisition.
We made every effort to offer people positions in other parts
of the business, and alternative positions within the company
were planned for more than 1,200 employees. The reduction
was expected to affect approximately 1,500 positions.
39
Case study
Motorola cultural integration
We partnered with a research company to conduct a culture assessment involving an anonymous survey of more than
16,000 former Motorola and Nokia Siemens Networks employees. More than 7,000 (43%) responded. The survey
measured six elements of organizational culture: achievement, environment, communication, perspective, power and risk.
Supplementing this research, 29 face-to-face sessions were held with employees of both companies in 14 countries,
and 16 key leaders were interviewed.
Analysis of this information determined cultural similarities and differences and identified priority areas to focus on.
We communicated the results broadly to aid integration planning, and provided a manager communication pack which
suggested practical tips to help managers maximize desired cultural outcomes and mitigate cultural weaknesses.
Our Culture Ambassadors in various regions and business units helped new Motorola colleagues integrate into the
Nokia Siemens Networks culture. A leadership alignment workshop in July 2011 determined practical next steps, including
a diverse representation of 35 leaders from both companies. Examples of actions included partnering to resolve local
customer issues, quicker resolution of problems with virtual collaboration tools, cross utilization of employee competencies
to help customers, and a new change management model which will be used to train all managers and employees.
Engagement
Almost half (46%) of invited employees
(total 26,500) participated in an interim
pulse survey in April 2011 and we are
encouraged that the Employee
Engagement Index remained constant
at 73%. However, we saw a decline in
engagement levels in the full Employee
Engagement Survey in December
2011 which came shortly after the
announcement of our change in
business strategy and associated
restructuring. Around 84% of
employees responded.
This decline reflects a feeling
of uncertainty about the future of
our business as major changes
and restructuring were confirmed.
We believe that in the long term, the
far-reaching changes to our business
strategy announced in November 2011
will help to address some of the
concerns employees have consistently
raised such as the lack of clear
business strategy and long term
direction for the company, the diversity
of the products and services we offer,
and the lack of clear leadership.
40
The Perception of Leadership score

decreased significantly (by 9%)
compared with 2010. This was mainly
driven by a decline in trust, confidence
and consistency of leadership
decisions, and leadership providing an
inspiring vision of the future.
On the other hand, the employee rating
on the Line Manager Index (measuring
leadership behaviors according to the
Nokia Siemens Networks Leadership
Code) went up three percentage points
to 78%, demonstrating a polarization
between trust in the immediate
manager compared with senior
leadership. The Intention to stay
with Nokia Siemens Networks
continues to decline, down 3% from
2010 and now 10% below the industry
norm for telecoms companies.
We included three questions
specifically related to the change
announcement, which showed
encouraging results. Asked about the
recent changes, 60% of employees
said they were the right ones (with only
17% disagreeing), 73% said that they
are committed to supporting the
changes, and 75% believed their
managers would do an excellent job
leading them through the changes.
As well as planning engagement

activities for individual teams as part of
our Employee Engagement Survey
process, we also ran additional
engagement campaigns in Europe,
Asia-Pacific and North America in 2011
to improve employee engagement.
More information about the campaign
in North America is provided in the box
on page 41.
To improve employee communication,
we launched two new tools in 2011 to
connect people working in different
locations. MySite enables employees
to find and contact anyone in the
business by viewing their profile and
using the instant messaging function.
Our new internal video channel,
NSNtube, features video interviews
with senior leaders and a function for
employees to upload their own videos
and share knowledge with colleagues.
We also redesigned intranet content to
make information more relevant and
accessible for employees and give
them an opportunity to pose questions
to Executive Board members, which
are answered in a monthly blog post.
Case study
Engagement Campaign in North America
Challenging economic times and a continued decline in engagement scores in North America prompted a focused
engagement campaign in the region. The week-long campaign targeted all employees, addressing the following four
questions:

Is Nokia Siemens Networks the place for me?

How does my role support our business strategy?
Am I being paid competitively?
What resources are available to help me grow my career at Nokia Siemens Networks?
Each question was addressed on a specific day through a variety of education programs and communication forums for
both employees and managers. Managers were encouraged to have further discussions in their own teams to emphasize
key learning points from the week and encourage employees to talk through a variety of channels in an open forum.
Communication methods included blogs, videos, training sessions, workshops, email and conference calls to allow all
employees throughout the region to take part.
Although employee engagement scores did not improve in North America in our latest survey, the campaign fostered
awareness of available tools and career options in the company and helped employees understand how they are
compensated and the range of salaries used in their region. It also gave people the opportunity for dialog
with managers and teams about the value they contribute to the company strategy.
Development opportunities
and leadership potential
We continued to work on personal
development opportunities for
employees in 2011 although Personal
Development Plan (PDP) coverage
declined heavily to 54%. Our tracking
and follow-up of PDPs focused on the
identified group of talents, where PDP
coverage was much higher (94%).
As the focus on cost reductions
impacted some of our face-to-face
learning options and employees ability
to participate in training, we focused on
promoting other important aspects of
development such as:
Promoting the importance of a
dialog between employee and
manager about the employees
development needs through the
Its your career campaign in 25
countries
Promoting the 70-20-10
development approach, where 70%
of learning should come from on
the job learning opportunities, 20%
from feedback and mentoring, and
10% from formal training
Promoting the importance of
continuous coaching and feedback.
The overall score for satisfaction with

personal development opportunities
was 46% in the Pulse survey in April
(a 2.8 point decline compared with
2010). This was not covered in the full
annual survey as it focused on
questions related to the recent change
announcement.
Our in-house Academy provided online
and face-to-face training for employees
on a range of subjects including ethical
business training, environmental
awareness and technical training.
We also introduced an online
Knowledge Library with 11,500
resources to promote more informal
learning. By the end of 2011,
employees had spent more than
30,400 hours watching professional
educational videos on the new
employee video channel, NSNtube.
We also continued efforts to establish a

strong leadership culture and updated
the framework for developing
leadership capabilities, adding two new
modules on finance and profitable
growth. The majority of line managers
have now completed Consistency in
Leadership training. Approximately
650 newly appointed managers
attended the License to Lead
program in 2011. We have also
established partnerships with external
training companies to deliver targeted
leadership training programs from
2012.
Our two-day education program on

Service Excellence to help employees
provide exceptional customer service
continued in 2011. Since the program
began in 2009, more than 18,900
employees have received certification
as Service Excellence Champions,
6,119 of whom were trained in 2011.
Customer service improvement
projects implemented as a result of this
training have generated 8.6 million for
the business in cost savings or sales.
41
Diversity
Diversity remains important to our
business and we continued to promote
it through our global programs for
developing talent and leadership skills,
and through our recruitment processes.
We introduced new requirements in
2011 that executive search firms must
put forward a minimum percentage of
women and candidates from different
countries for senior management
positions.
However, with significant changes in
the business and the need to address
employee feedback in other areas, we
did not have the resources to roll out
further diversity workshops for senior
leaders as planned. Instead, regional
organizations developed targeted
programs for improving gender
balance.
For example, in Germany we extended
a one-on-one mentoring program for
women and established a network to
encourage women in senior positions
to mentor female employees with
management potential. The aim is to
increase the number of women in
senior management. Network meetings
in 2011 covered topics such as
communication skills and ability to
innovate.
Labor conditions
Our Code of Conduct and Global Labor
Standard set out clear requirements for
labor conditions, based on the
International Labor Organisation (ILO)
Conventions. In 2011 we piloted the
Global Labor Standard in Brazil, India
and China, working with Social
Accountability International (SAI), one
of the leading global non-governmental
organizations aiming to improve rights
for workers.
We identified these countries as
high risk based on the Maplecroft
Labor Rights and Protection risk index,
customer requirements and our
headcount in each country. They
account for more than half our global
workforce.
42
Case study
Wellbeing@work Finland
Wellbeing is an important aspect of a healthy, sustainable
and high-performing workplace and we continued to promote
wellbeing during 2011. We ran a series of workshops designed
to give employees and line managers tools to achieve greater
balance between work and personal commitments.
In 2011, national statistics in Finland show that depression
was the most common diagnosis for disability pensions across
industry sectors. We introduced two new health programs to
address this issue as part of the wellbeing@work program in
Finland. The preventive path helps people learn how to identify
factors that affect working ability and find ways to manage
stress. It also educates people on how overloads develop and
how an individuals own resources can aid recovery. The
reparative path aims to improve the effectiveness of depression
diagnostics and care.
Both paths are continuous processes over a year, including
individual meetings with a psychologist, group meetings every
one or two weeks, follow-up visits and potential occupational
health negotiation. As well as these specific measures, we
increased the number of case-specific individual health
meetings between the employee, line manager, Human
Resources and Occupational Health Care. Together these
actions resulted in successful returns from sick leave and the
rate of disability pensioners decreased.
Implementing the Standard for labor

conditions requires cooperation from
employees in global and local
functions. With the support of SAI,
we held a workshop for those involved
to enhance their attitudes, skills and
knowledge of the Labor Standard and
management systems, and to share
best practice.
Cross-functional project teams
evaluated current labor practices and
policies in each country and the
strength of labor standards
management systems. SAI validated
and benchmarked the self assessment
results in each country by interviewing
local project teams. SAI also validated
our labor practices and policies at the
corporate level by reviewing our global
policies and evaluating the
development and implementation of
management systems.
Based on the findings, we will simplify

our global labor policies in 2012 to
achieve more consistency and clarity.
We will establish social performance
teams to carry on the country level
implementation and increase our
capacity to conduct internal audits of
working conditions. We will also
implement a consistent management
system to ensure transparency on a
corporate level. Our long term goal is
to achieve third party verification to the
SA8000 standard in these countries.
Community
Through our long term partnerships with key charities, our employees volunteering efforts
and donations, we support projects that focus on the benefits information and
communication technologies (ICT) can bring.
Strategy
In 2011 we redefined our community
strategy to focus on three key areas
where we can have the greatest impact:
education and ICT, disaster preparedness
and relief, and the environment. We
contribute to communities in these
areas in three ways:
Corporate social investment:
developing long term partnerships
with global charities that support our
aims
Employee volunteering: encouraging
employees to volunteer and contribute
to local programs in their region
Donations for disaster relief:
donating money and equipment
to support disaster relief efforts
worldwide.
Activity in 2011
We communicated these three themes
to our employees and encouraged
them to support related projects, as
well as updating our donations policy
accordingly. We strengthened our
global partnership with Save the
Children and worked closely with
WWF. After three years of working with
WWF, our formal partnership with the
charity ended in December 2011.
Corporate social investment
Our global collaboration with Save the
Children and WWF contributes to
projects that support our community
strategy:
Education and ICT: In 2011 we
built on our partnership with Save
the Children to promote childrens
rights and use of the internet to learn
life skills. We extended our previous
program on safer internet use for
children in Finland by creating a
wider media education program
called Childrens Voices targeting
children aged four to 10 years old,

as well as their school teachers and
adults looking after them. We are
developing materials for teachers
worldwide and helping to translate
them into different languages. The
materials, which promote childrens
rights, ICT skills and online safety,
and tackle online bullying, are being
piloted in Finland and India in 2012.
Disaster preparedness and relief:
Our new project with Save the
Children in India is helping villagers
in three states prepare for natural
disasters and boost the resilience
of communities likely to be affected
(see case study, page 44).
Environment: Through our global
partnership with WWF, we created
a series of tailored One Planet
Leaders workshops to improve
our employees and our customers
understanding of environmental
issues and give them the skills
to consider sustainability in their
everyday business decisions.
Volunteering and
regional activity
We encourage employees around the
world to get involved in projects that
support our community strategy
through fundraising and volunteering.
Examples of community involvement
and volunteering projects in 2011
include:
China: a Green Pioneer Club of
around 80 employees from our
China office planted 180 trees in the
Binjang District of Hangzhou and at
He Ge Zhuang, a rural area on the
outskirts of Beijing.
Finland: employees organized an

art exhibition to raise funds for our
global charity partner, Save the
Children. The exhibition featured
paintings by adults based on stories
told by children, with the aim of
promoting childrens voices and
storytelling.
India: we contributed to the Sarthak
project that trains people with
disabilities in technical skills to help
them secure jobs. In New Delhi, our
work with local NGO Swechha gives
students ICT skills to develop their
education and careers. We are also
supporting a health, education and
environment NGO called SCALE in
the north Indian state of Uttarakhand
to provide training and 2,000 skilled
jobs by 2013.
Indonesia: more than 30 of our
employees volunteered at 22
schools in Jakarta, teaching ICT
skills to around 3,000 students
and demonstrating how to use ICT
for practical tasks like monitoring
environmental pollution in rivers.
Nokia Siemens Networks Indonesia
also continued to promote women
in technology, recognizing the
achievements of four female
electrical engineering university
undergraduates with an award in
2011 and offering them intensive
training from employees.
South Africa: we sponsor a
program of extra school lessons
for underprivileged children at
Ndzundza Mabhoko Secondary
school in Mpumalanga. We support
an organization called Tomorrow
Trust that provides classes during
school vacations. The classes help
150 children in Grades 10 to 12
improve their understanding and
skills in accountancy, business
studies, English, mathematics and
science.
43
Disaster relief
In 2011 we updated our donation
guidelines to focus on supporting
disaster relief efforts. We clarified
our policy on matching the fundraising
efforts of our employees and we
introduced a new tool for tracking
donations to make it easier for our
employees to raise funds. In 2011,
our employees raised funds for
disaster relief following the earthquake
and tsunami in Japan in March 2011
and to support aid agencies working in
the Horn of Africa region to combat the
effects of prolonged drought.
Case study
Preparing communities to cope
with natural disasters
When natural disasters such as flooding or an earthquake hit a community, rapid restoration of communications
infrastructure can support relief efforts and increase the chances of survival for those affected. But telecommunications
infrastructure can also play a critical role in preparing communities to cope with potential disasters and improving their
resilience.
This is the focus of a new pilot program launched in South Asia by Nokia Siemens Networks in collaboration with our
global charity partner, Save the Children, and co-funded by the Finnish Ministry of Foreign Affairs.
Flooding, cyclones, tornadoes, drought and earthquakes affect 30 million people annually in India alone, and the effects
can be worsened by lack of preparation. The purpose of the project is to set up Disaster Management Resource Centers
(DMRC). We are exploring the possibility of using our technology for an early warning system and developing new ways
of communicating voice and data information using little power or infrastructure. This is crucial because electricity and
communication infrastructure can be unavailable for weeks following a natural disaster. These centers will build the
resilience of vulnerable children and communities to protect them from the devastation caused by natural disasters.
Computers with customized software will be used to compile a database mapping vulnerability and risk, a loud speaker
system will relay early warnings and the project team will work with local institutions to develop safe evacuation routes for
South Asian communities to use in the event of a disaster. The project will also provide search and rescue kits, first aid
and cooking facilities, as well as supporting the ongoing management of the centers.
44
KPI summary 2011

These are the key performance indicators through which we measure our performance.
A detailed list of indicators and reporting alignment to the Global Reporting Initiatives (GRI) G3 Sustainability Reporting
Guidelines can be found on our website: www.nokiasiemensnetworks.com/sustainabilityreporting
2008
2009
2010
2011
Total Energy Use (GWh)
609
551
518
4831 / 540*2
Product lifetime energy consumption (GWh)
20,500
16,800
19,924
24,777
456
369
426*
20
23
20
20
N/A
N/A
118
160*
N/A
75
73
70
Male
N/A
90
89
88*
Female
N/A
10
11
12*
N/A
N/A
14.8
9.9
50%
82%
92%
90%*
13
17*
Environment
Energy
Carbon footprint
Total CO2 from our operations (Thousand tonnes)
Total CO2 normalized by sales (g/)
Health and safety
Number of lost-time incidents
Employees
Employee satisfaction / engagement index (%)
Diversity
Senior leader gender balance (%)
Training and development

Hours of training per year per employee
Ethics
Percentage of employees who have completed online training on ethical business
conduct
Suppliers
Number of in-depth audits (focused on labor conditions and environment)
1
Excluding Motorola
Including Motorola
45
Progress against targets summary

Target
Progress in 2011
Status
Future targets
Target date
Environmental impacts of our products and services

Improve the efficiency of GSM/EDGE and WDCMA/
HSPA base station products by up to 40 percent
compared to 2007 performance by end of 2012
Ongoing
Ongoing
End 2012
Achieve full material content data collection for 90%

of components in use at Nokia Siemens Networks
by end of 2012
Ongoing
Ongoing
End 2012
100% coverage for environmental data of packaging

materials in corporate level IT system and
environmental reporting system by 2013
Progress continued in 2011 but not fast enough

to meet the target. Additional resources are
being applied but the scope of this task remains
unclear. We are therefore unable to specify a
new target date.
Not achievable
target
abandoned
N/A
N/A
Increase the average energy

efficiency of the product portfolio
by 5% per year on average
Ongoing

Achieve ISO 14001 certification for Nokia Siemens
Networks environmental management system
Certification achieved in August 2011
Achieved
Reduce emissions for new cars in the Europe

service fleet to 120g/km
Achieved for Finland but not for Germany due

to related diesel particulates
Partly achieved
Reduce CO2 emissions from buildings by 30% by

end 2012 from the 2007 baseline
Despite a 0.4% increase in 2011, emissions

from buildings are 31% lower than 2007
(excluding former Motorola sites).
Ongoing
Ongoing
End 2012
Improve the energy efficiency of buildings to reduce

associated energy use by 34,300 MWh by end 2012
Energy efficiency savings in 2011 were 9,450

MWh including those implemented at acquired
Motorola sites. Total savings since 2007 are
24,078 MWh.
Ongoing
Ongoing
End 2012
Reduce CO2 emissions from IT operations and use

of IT products by 20% by 2015 from the 2008
baseline
Emissions (excluding Motorola) were 4.5%

below the baseline in 2011
Ongoing
Ongoing
End 2015
Improve data center infrastructure efficiency (DCiE)

to an average of 0.5 by 2015
Achieved a DCiE of 0.52 in 2011
Achieved
Average 5% reduction year on
year for energy consumption of
own operations.
Ongoing

Ensure all employees complete annual ethical
business training by the end of 2011
90% of employees completed ethical business

training in 2011
Partially
achieved
Ongoing
End 2012
Conduct a further 200 anti-corruption training

sessions by the end of 2011
184 face-to-face sessions held on anticorruption, training 5,647 employees; although

we held fewer sessions than planned, we have
trained significantly more employees
Partially
achieved
Roll out online anti-corruption

training for all employees
End 2012
Review anti-corruption training materials to help

employees understand the information more easily
by the end of 2011
Anti-corruption training materials reviewed in

November 2011
Achieved
Establish a 24-hour telephone

ethics reporting system available
in key countries where we
operate.
End 2012
Ongoing
End 2012
Human rights
Implement human rights due diligence process in
line with the human rights policy by the end of 2011
Due diligence process rolled out globally
Achieved
Train our sales, legal, procurement and R&D teams

on the human rights policy by the end of 2011
Staff in relevant roles in the Middle East and

Africa were trained face-to-face or via
teleconference.
Ongoing
46
Target
Progress in 2011
Status
Future targets
Target date
Contribute to the development of

common industry guidance and
tools on human rights, freedom of
expression and privacy through
the industry dialog established in
2011
End 2012
Work with suppliers to ensure all

open audit findings are addressed
End 2012
Suppliers
Conduct in-depth audits on labor conditions and
environmental management of 16 suppliers by end
2011
17 in-depth supplier audits conducted
Achieved
Increase the number of auditors qualified to conduct

in-depth audits to eight by end 2011
No further auditors trained in 2011, This target

will not be continued for 2012, as the business
is changing and targets need to be reflective of
that. Despite the auditor numbers not going up,
the number of audits increased.
Not achieved
Roll-out industry training to suppliers on workermanagement communication and occupational

health and safety in high-risk regions by end 2011
Worker-management communication training

piloted with suppliers in Malaysia; industry
training on health and safety has not been
rolled out further but this issue continued to be
a key focus in our own supplier workshops, We
continued integrating OHS into our own supplier
workshops as well as OHS training centers. We
shared our own training materials with the
industry group, and contributed intensively in
creating the industry wide training material with
peer groups. The industry training was not
launched, which was out of Nokia Siemens
Networks's control.
Partially
achieved
Conduct at least six supplier workshops in high-risk

countries by end 2011
Seven supplier workshops held in five high-risk

countries
Achieved
Pilot a web-based workshop for

suppliers
End 2012
Roll out Carbon Disclosure Project (CDP) tool to

track suppliers progress on energy efficiency by end
2011
92 key suppliers invited to report energy use

and carbon emissions via the CDP - 54 have
done so
Achieved
Invite a further 50 suppliers to

report their energy use and
greenhouse emissions via the
CDP
End 2012
Develop our internal process for reporting supplier

audit findings on a regional and global level by end
2011
Progress made in some regions to align

regional health and safety audits with our global
audit framework. Escalation of audit findings
from the regional team to the Global
Procurement through much strengthened
communication and cooperation with Global
Services Health & Safety.
Partially
achieved
Ensure that 80% of employees in our Global

Procurement organization have received training on
sustainability by end 2011
72% of Global Procurement employees trained

on sustainability; training continued in 2011 but
we have not met the target due to changes in
personnel, Target achievement was affected by
incoming new employees as a result of the
acquisition of Motorolas network solutions
business.
Not achieved
Continue to train procurement

staff on sustainability
End 2012
Ensure that suppliers representing at least 20% of

our procurement spend have joined E-TASC by end
2011
Suppliers representing 17% of procurement

spend have now joined E-TASC; progress
limited due to problems with the launch of the
updated tool*
Not achieved
Roll out our revised Supplier

Requirements in all new contracts
and begin a phased upgrade of
existing contracts
End 2012
Roll out industry due diligence

process on conflict minerals,
initially focusing on suppliers
using tantalum
End 2012
47
Target
Progress in 2011
Status
Future targets
Target date
Achieve zero fatal accidents by collaborating closely

with our customers and contractors
Collaboration with customers continues in an

ongoing effort to reduce
major incidents.
Ongoing
Establish a Major Accident

Prevention Plan to decrease the
number of major accidents by
collaborating closely with our
customers, contractors and
business units
Ongoing
Continue the International Safety Rating System

(ISRS) deployment by defining health and safety risk
category for all sites with more than 50 employees
Health and safety risk category defined for all

sites and health and safety action plans in place
for all sites with more than 50 employees.
Achieved
Implement a program on leadership and awareness

of health and safety
Global program being implemented including

personal statements from senior leaders
demonstrating their commitment to health and
safety initiatives.
Partially
achieved
Achieve OHSAS 18001 certification in four additional

countries
Certification achieved in four additional

countries: Italy, Mozambique,
Tanzania and the United Kingdom.
Achieved
Align health and safety

management system to achieve
the maturity for global certification
to OHSAS 18001 for all Nokia
Siemens Networks operating
countries
2013
Increase coverage of incident data reported across

the business
Centralized incident reporting tool fully

implemented across the business
and tied to overall risk management and
reduction. Incident data now
covers 100% of the business.
Achieved
Continue to consolidate incident

reporting by increasing the
number of near miss incidents
reported
End 2012
Achieve an employee engagement index of 75%
Our employee engagement score declined to

70%, largely as a result of the transformation
announcement a week before starting the
survey
Not achieved
Increase employee engagement

by two percentage points
End 2012
Improve gender balance in our senior management
Women represent 11.5% of senior

management, slightly up from 11% in 2010*
Achieved
Ensure all line managers have participated in

Consistency in Leadership workshops
The Consistency in Leadership workshops

were not pursued in 2011 due to the focus on
cost reductions
Not achieved
Train a further 6,500 employees in Service

Excellence
6,119 more employees trained in Service

Excellence; target was revised to 5,500 in the
third quarter of 2011 due to the focus on cost
reductions
Achieved
revised target
Train a further 1,000 employees

in Service Excellence through two
day face-to-face workshops
End 2012
Continue raising awareness of labor conditions with

a focus on high-risk countries by using the
Maplecroft country risk index to systematically
categorize sites by level of risk, focusing on health &
safety.
Pilot program launched to implement our Global

Labor Standard in Brazil, China and India,
countries identified as highest-risk using
Maplecroft country risk index
Achieved
Achieve employee support of

67% for our future direction,
measured through a combination
of questions in our employee
survey
End 2012
Health and safety
Employees
48
Independent assurance statement

Scope and objectives
Two Tomorrows (Europe) Limited has
undertaken independent assurance of
the Nokia Siemens Networks (NSN)
Sustainability Report 2011 (the Report).
The assurance process was conducted
in accordance with AA1000AS (2008).
We were engaged to provide Type 2
assurance for the following areas:
evaluation of adherence to the
AA1000APS (2008) principles
of inclusivity, materiality and
responsiveness (the Principles) and
the reliability of specified
sustainability performance
information, which is outlined
in Appendix 1 of this document
(Performance Indicators)
The scope of our work excluded:
KPIs or other data that is not listed in
Appendix 1. This includes, but is not
limited to data in the Environmental
impacts of our products and
services section. Where we
identified a material claim in this
section, we did not review source
data or associated calculations
Where NSN has disclosed separate
data points for a Performance
Indicator to demonstrate the
difference between data for NSNs
legacy sites and all sites, including
those acquired from Motorola
(i.e. excluding and including
Motorola), only total figure
(i.e. including the Motorola data)
is within our assurance scope
We used the Global Reporting Initiative
(GRI) Quality of Information Principles
as Criteria for evaluating performance
information.
We provided an independent check of
NSNs self-declared GRI application
level.
Responsibilities of the
directors of NSN and
of the assurance providers
The directors of NSN have sole
responsibility for the preparation of
the Report.
We were not involved in the
preparation of any part of the Report.
In addition to the assurance of the
Report, we reviewed evidence for a
sample of material claims in NSNs
20-F submission to Nokia Group. We
have no other contract with NSN and
this is the first year that we have
provided assurance.
Our statement represents our
independent opinion and is intended to
inform all of NSN stakeholders. We
adopt a balanced approach towards all
stakeholders.
Our team comprised Dave Knight,
Elvin Ozensoy, Sini Forssell, and
Samantha Parsons. Further
information, including individual
competencies relating to the team can
be found at: www.twotomorrows.com.
Basis of our opinion

Our work was designed to gather
evidence with the objective of providing
moderate assurance as defined in
AA1000AS (2008). We undertook the
following activities:
Review of current sustainability
issues that could affect NSN and are
of interest to stakeholders, including
a comparison with peers and issues
raised in the media
Interviews with three Executive
Board members and five other
directors and senior managers
who are accountable for the
management of sustainability
issues. We were free to choose
interviewees
Review of NSNs reporting and

management processes relating to
the Principles, including evidence of
stakeholder engagement and recent
outputs engagements. We did not
have any direct engagement with
stakeholders
Three sample site visits, that we
freely selected based on a sample
of the material issues managed on
sites, to Espoo (Finland), Munich
(Germany) and Centurion (South
Africa) to review process and
systems for preparing site level
sustainability data and to provide
insight on the implementation of
sustainability strategy
Assessment of supporting evidence
for key claims and performance
indicators prioritised according
to materiality at a consolidated
corporate level
Review of the processes for
gathering and consolidating
performance data and for a sample,
checking consolidation from
reporting system to the Report
An independent assessment of the
Report against the B+ Application
Level for the Global Reporting
Initiative (GRI) G3 Guidelines
Limitations of our work

Our work was subject to following
limitations:
Due to the timing of our Centurion
and Espoo site visits, we were not
able to fully trace data through the
site level systems to corporate level
systems. We were, however, able
to see intermediary source data for
Munich site data and observe how
site level data had been collated into
the corporate level submission
We understood that Motorola data
was included in all performance
indicators, with the exception of
Number of our top suppliers who
have a set of targets to reduce
environmental impacts. With the
exception of environmental data
in scope of our work, we have not
tested this
49
For data collated or calculated

by NSNs facilities management
suppliers and external verifiers
(including all energy and water
data), we checked transposition
from these sources to the Report
and reviewed a sample of the
processes used by these agencies
for data collation, but did not check
the actual calculations
Our review of the GRI index and

Report indicates Nokia Siemens
Networks meets the requirements
of a B+ GRI application level.
Material issues are those which are

necessary for stakeholders to make
informed judgments concerning
NSN and its impacts:
Observations
Findings and Opinion
The restructuring programme which

was announced towards the end of
2011 (the reporting period) has
resulted in changes to the governance
and management of sustainability, and
the implications are not yet fully clear.
As the significant developments
around the restructuring fell just
outside the reporting period, into 2012,
we would expect further disclosure in
subsequent reports, specifically in
relation to changing business priorities
and the impacts on the management
of sustainability and employees.
NSN uses the industry-wide

Global e-Sustainability Initiative
materiality assessment tool, which
assigns stakeholder ratings for
the materiality of issues. Whilst
we believe NSN has identified its
material issues, this rating was
conducted in previous reporting
years and therefore we recommend
NSN update the ratings periodically
and report any significant changes
Health and safety remains a key
priority area for NSN. Reported
accidents and incidents increased
in 2011 for both NSN employees
and service providers working for
the company. We saw evidence
that increased transparency and
improvements in reporting systems
contributed to this rise
With an increased number of
fatalities, NSNs work in establishing
a new accident investigation
process by a panel of senior leaders
is timely and we recommend future
reports disclose the outputs of this
work and that the CEO statement
recognises any fatalities
This year NSN started using a
country risk index to systematically
categorise the level of health and
safety risk for sites in high risk
countries. We recommend further
disclosure on the outcomes from
this initiative and the implications
for the wider management of
sustainability, including supply chain
management
NSN continued to make progress
in integrating human rights
impact assessments into its sales
mechanism and demonstrating good
practice case studies to address
privacy issues
We reviewed and provided feedback

on drafts of the Report and where
necessary changes were made.
On the basis of the work undertaken,
nothing came to our attention to
suggest that the Report does not
properly describe NSNs adherence to
the Principles or that NSNs data has
not been properly collated from
information reported at operational
level, nor that the assumptions utilised
were inappropriate. We are not aware
of any errors that would materially
affect the corporate-level data or its
performance indicators, with the
following exceptions:
NSN collects data to its own global
standards and has made notable
improvements in data collection
system, such as extending the
coverage to all operations as well
as accident review processes.
Where legislative requirements and
cultural expectations for employee
management and health and safety
vary from these global standards
this can present a challenge. For
example, in Centurion, we observed
that the site reported Total disabling
incidents, as opposed to the
global standards total recordable
incidents performance indicator.
Guidance and training around
data protocols and definitions for
the Total recordable incidents
KPI could be improved to ensure
consistency and we recommend the
company highlights where variations
to these global standards occur.
We did not conduct any additional
work to investigate this further and
as such are unable to conclude
how significant this may be for this
indicator overall
50
Without affecting our assurance

opinion we also provide the following
observations.
Inclusivity concerns the

participation of stakeholders in
developing and achieving an
accountable and strategic response
to sustainability:
We were encouraged to see NSN
has continued to collaborate closely
with its stakeholders, particularly
with customers regarding energy
efficiency of networks and improving
health and safety performance
We recommend that NSN reviews
the opportunities from a formalised
structure, for example a stakeholder
panel, to integrate stakeholders
views into strategic decision
making, enhancing sustainability
management
Responsiveness concerns the

extent to which NSN responds to
stakeholder issues:
Appendix Sustainability Report Performance Indicators
We recommend that future

reports provide an update on
employee outcomes relating to
the restructuring programme
including, redundancies and support
programmes put in place by NSN for
continuing and ex-employees
The changing business strategy
and priorities are impacting on
target setting and we recommend
ongoing disclosure explaining
rationale for any changes to targets,
particularly relating to Health and
Safety, Employees, and Supplier
performance, as they remain
material
We recommend improved disclosure
on the roll out of energy efficiency
of network infrastructure projects,
such as Opera net. This should also
address opportunities and customer
benefits from renewable powered off
grid network activity
Performance Information
A positive development this year
was the improved disclosure on
the number of sites that report on a
number of performance indicators,
including environmental impacts
of NSNs operations and health
and safety. We recommend NSN
continue developing and reviewing
consistent application of data
protocols
NSN made good progress
in aligning the reporting of
performance indicators following
the Motorola acquisition in 2011,
particularly for environmental and
supplier data. Given the baseline for
reduction targets for environmental
1.
Total Energy use (GWh)
2.
Electricity from renewable sources
3.
Air travel emissions (thousand tonnes)
4.
Total emissions from buildings (tonnes CO2 equivalent)
5.
Indirect emissions from purchased electricity and district heating (tonnes CO2 equivalent)
6.
Direct emissions from gas and oil used in our facilities, methane and nitrous oxide from
heating (tonnes CO2 equivalent)
7.
Total water use (m3)
8.
Percentage of employees who have completed online training on ethical business conduct
9.
System audits against our supplier requirements
10.
In-depth audits focused on labor conditions and environment
11.
Total number of Nokia Siemens Networks suppliers who have joined E-TASC to date
12.
Percentage of the sites of our top 250 suppliers by spend, to whom environmental
management system (EMS) alignment is applicable,
that have a documented EMS in place
13.
Percentage of the sites of our top 250 suppliers, to whom EMS alignment is applicable,
that are certified to ISO 14001
14.
Number of our top suppliers who have a set of targets to reduce environmental impacts
15.
Number of suppliers participating in Nokia Siemens Networks CR workshops
16.
Number of management level supplier workers participating in Nokia Siemens Networks

CR workshops
17.
Percentage of procurement staff who have received CR training to date
18.
Percentage of procurement staff who have completed online ethical business training
19.
Total recordable lost-time incidents
20.
Total recordable incidents
21.
Recordable incidents in Global Services business
22.
Total number of employee fatalities
23.
Total number of contractor fatalities
24.
Yearly attrition rate of voluntary leavers
25.
Total expenditure on training (including travel costs)
26.
Average training spend per employee
27.
Gender balance: Senior Management (approximately top 400 employees)
performance indicators was based

on NSNs legacy sites, it is positive
that this year data is broken down to
demonstrate performance of legacy
sites and recently acquired Motorola
sites, which enables comparability.
Two Tomorrows (Europe) Limited

London
31st May 2012
Two Tomorrows (Europe) Limited is part of DNV,

a global provider of services for managing risk, helping customers
to safely and responsibly improve their business performance.
www.twotomorrows.com
Dave Knight
Sustainability Services Director
51

P.O. Box 1
FI-02022 NOKIA SIEMENS NETWORKS
Finland
Visiting address:
Karaportti 3, ESPOO, Finland
Switchboard +358 71 400 4000 (Finland)
Switchboard +49 89 5159 01 (Germany)
Copyright 2012 Nokia Siemens Networks.
All rights reserved.
Nokia is a registered trademark of Nokia Corporation,
Siemens is a registered trademark of Siemens AG.
The wave logo is a trademark of Nokia Siemens Networks Oy.
Other company and product names mentioned in this document
may be trademarks of their respective owners, and they are
mentioned for identification purposes only.
This publication is issued to provide information only and is not
to form part of any order or contract. The products and services
described herein are subject to availability and change without
notice.
www.nokiasiemensnetworks.com

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Nokia Siemens Networks

Who we are and what we do

Environmental impact of operations

Ethics and compliance

Tell us what you think

Progress against targets summary

Independent assurance statement

About this report

Sustainability report 2011

confidence that not only the data is

Selected data indicators are also

2011 was a challenging year for

70% engagement score in our annual employee survey

Focus is one of the key themes of

We maintained our strong focus on

Rajeev Suri, Chief Executive Officer,

Sustainability report 2011

Who we are and what we do

Focus on the customer

Our mission is to help operators to

Sustainability report 2011

In 2011, we announced a two-year

The restructuring will result in some

The Executive Board reviews

ICT and development

In 2011 we simplified our approach

Working groups as needed

across the company one for

goals and key performance indicators

Sustainability report 2011

We continued to be particularly active

Sustainability report 2011

Ethics, bribery &

Privacy and Data

Raw Materials Usage

Waste and water

In 2011 we communicated with

Influence on business success

Supporting the launch of a Green IT

Using our Connectivity Scorecard

Information and Communication

There are many aspects of ICT

We have presented the Connectivity

A favorable regulatory and fiscal

Sustainability report 2011

The 2011 Connectivity Scorecard

Rank [*] Country

Rank [*] Country

During 2011, Nokia Siemens Networks

Sustainability report 2011

* last years rank in parenthesis

* last years rank in parenthesis

Table 1: Connectivity Scorecard 2011

Table 2: Connectivity Scorecard 2011

Progress against targets

On track to meet this target

On track to meet this target

Progress continued in 2011 but not

Sustainability report 2011

Product lifetime energy consumption vs. sales (kWh/)