ANNUAL
REPORT
2024
MAKING THE WORLD SAFER,
OVER AND OVER AGAIN
Making the world safer,
over and over again
We work to make the world a safer place for all through our tires.
We are ready to rethink, retry and challenge ourselves and others around us to do more,
to develop what we have invented and to push the frontiers in everything we do.
Lead to future
Our purpose is to make the world safer by reinventing tires, and how
they are made, over and over again – this inspires us to push on even
further. That is why this year, we will not only look at the ways we
have made the world safer, but also what affects our journey ahead.
Toward smarter driving
Our vision is to lead the world to drive smarter. Smarter
driving means delivering the next level of safety and
sustainability in mobility. We strive for progress by being
resilient and by having the courage to make pioneering
decisions.
The Report by the Board of Directors
comprises also Sustainability
Statement and Corporate
Governance Statement.
The Sustainability Statement includes
information reported according
to the EU Corporate Sustainability
Reporting Directive (CSRD) and the
European Sustainability Reporting
Standards (ESRS). The Sustainability
Statement is structured into four
main sections: General information,
Environmental information, Social
information, and Governance
information. The main sections
are divided into different topics in
accordance with the ESRS.
In the end, there is also a short
section Additional sustainability
disclosures, which includes
information on matters that were
not deemed material in the double
materiality analysis.
The ESRS content index on pages
127–130 lists the disclosure
requirements that Nokian Tyres
has included in the Sustainability
Statement.
How to read the Sustainability Statement
NOKIAN TYRES
YEAR 2024
This is Nokian Tyres 5
Highlights of the year 2024 6
Review by the President and CEO 9
Performance 11
Tire market trends 12
Sustainability scenarios 13
Sustainability 17
REPORT BY THE
BOARD OF DIRECTORS
Strategy 20
Financial information 21
Business unit reviews 24
Shares and shareholders 26
Annual General Meeting 28
Significant risks 31
Key financial indicators 34
Formulas for the key financial
indicators 36
Sustainability Statement
General information 38
Environmental information 64
Social information 94
Governance information 122
ESRS content index 127
Additional sustainability
disclosures 137
Corporate Governance
Statement
Introduction 140
Governance bodies 141
Board of Directors 143
Management team 149
Internal control and risks 151
FINANCIAL
STATEMENTS
Consolidated financial
statements 155
Parent company financial
statements 205
Signatures and the auditor’s note 216
Auditor's report 217
ESEF Assurance report 221
Assurance report on
the sustainability statement 222
Information on
Nokian Tyres' share 224
Nokian Tyres' Group structure 225
REMUNERATION
REPORT
Introduction 228
Remuneration of the
Board of Directors 230
Remuneration of the President
and CEO 231
INVESTOR INFORMATION
AND INVESTOR RELATIONS
General information and
IR contact 235
YEAR 2024
THE SEEMINGLY
SIMPLE BLACK
SHAPE OF A TIRE
CONCEALS COMPLEX
CHEMISTRY
MAKING THE WORLD SAFER,
OVER AND OVER AGAIN
Nokian Tyres R&D laboratory
Net sales from external customers by business unit, %
Passenger Car Tyres 56% (52)
Heavy Tyres 16% (19)
Vianor 28% (29)
Nokian Tyres
in a nutshell
Nokian Tyres develops and manufactures premium tires for
passenger cars, trucks, and heavy machinery. The Vianor chain
specializes in car and tire services.
• Nokian Tyres serves its customers in its core markets in
the Nordic Countries, North America, and Central Europe.
The branded distribution network includes the equity-
owned Vianor chain, the Vianor Partner chain, and the
Nokian Tyres Authorized Dealers (NAD) network.
• Nokian Tyres manufactures tires in three factories: In
Finland, the US, and Romania, in addition to which the
company has a wheel factory in Finland. Manufacturing
partners complement own production.
• Nokian Tyres’ testing centers are located in Nokia and
Ivalo in Finland, and Santa Cruz de la Zarza, Spain.
• The company’s headquarters is located in Nokia, Finland,
and its shares are listed on Nasdaq Helsinki.
Information on the company’s ownership structure is
available at company.nokiantyres.com/investors/share-and-
shareholders/major-shareholders.
The Nokian Tyres Group consists of the parent company
in Finland, the sales companies in Sweden, Norway, the US,
Canada, Czech Republic, Germany, France, Switzerland,
Poland and Ukraine, and the tire and car service chain
companies in Finland, Sweden and Norway.
Nokian Tyres in figures for 2024
Net sales
1.3
EUR billion
Employees
3,800
globally
Products were sold in
46
countries
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Report by the
Board of Directors
Sustainability
Statement
Financial
Statements
Remuneration
Report
Corporate Governance
Statement
Year 2024
First tire from factory in Romania
The first tire being manufactured at the factory in Romania is the
Nokian Tyres Snowproof 2 winter tire designed for Central European
drivers. Tire deliveries are set to start in 2025. The groundbreaking
ceremony for the factory was laid in May 2023.
Nokian Tyres began recruiting employees for the Romanian factory
in 2023, and empoyees have been hired for both production as well
as white-collar roles. Once the factory reaches full capacity, it will
employ approximately 500 people.
2024 for
Nokian Tyres
During 2024, Nokian Tyres achieved several important milestones
that have advanced the company’s progress toward its financial and
non-financial goals and have reinforced the company’s position in
the tire market.
Factory in Romania opened
In September, Nokian Tyres celebrated the opening of its new
passenger car tire factory in Oradea, Romania. The factory is the
world’s first full-scale zero CO
2
emission tire factory, where no fossil
energy is used. The factory is an example of a holistic approach to
sustainability, which includes, among other things, the use of zero CO
2
emission energy as well as energy-efficient and automated processes.
The factory is primarily focused on manufacturing passenger car tires
for the Central European market, since its location is strategically
close to the consumers and customers in the market.
Leading premium
tire company
Nokian Tyres is the leading manufacturer of premium tires in the
Nordic Countries, and the company is also targeting substantial
growth in North America and Central Europe.
The growth drivers of sales are the increasing capacity and the high-
quality products developed for the needs of various markets. The
company has an excellent product portfolio and a strong innovation
pipeline.
In addition to passenger car tires, Nokian Tyres is one of the leading
manufacturers of heavy special tires for segments such as forestry
and agricultural machinery. Vianor supports sales and the premium
brand position in the Nordic countries.
Read more about our targets and strategy at
company.nokiantyres.com/about-us/strategy.
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Report by the
Board of Directors
Sustainability
Statement
Financial
Statements
Remuneration
Report
Corporate Governance
Statement
Year 2024
90th anniversary of the invention of
the winter tire
2024 was the 90th anniversary of the invention of the winter tire.
Nokian Tyres invented the winter tire to tackle the harsh Finnish
winter. The winter tire received a heavily grooved tread pattern
in order to ensure grip, and the pattern was also designed to be
sufficiently open in order for it to clean out the snow while driving.
The world’s first winter tire Kelirengas (Weather Tire) was mostly
designed for trucks. Two years later, in 1936, a further improved
design specifically for passenger cars called the “Lumi-Hakkapeliitta”
(Snow-Hakkapeliitta) was introduced. In the early 1960s, a new winter
driving innovation was introduced, when studs were added to tires.
Nearly 90 years later, the Nokian Tyres Hakkapeliitta remains one
of the world’s best-known winter tire brands. The winter tire is
continuously being developed in order to meet the demands of
modern-day drivers and changing conditions.
New emission reduction targets
The Science Based Targets initiative approved Nokian Tyres’ new
greenhouse gas emissions reduction targets. They include both
near-term targets for 2030 and long-term targets to reach net-zero
emissions across the value chain by 2050.
Extended production in the US
New President and CEO
New vision and purpose
At the begining of 2024, Nokian Tyres launched its new vision
and purpose.
Vision: We lead the world to drive smarter.
Purpose: We make the world safer by reinventing tires, and
how they are made, over and over again.
The purpose describes the company’s willingness to work toward
safety and sustainability, over and over again. True to its vision,
Nokian Tyres strives for progress by being resilient and courageous
in making new decisions as a pioneer. The company enables smarter
driving for people and businesses by leading the journey by example
and inspiration.
Paolo Pompei was appointed President and CEO for Nokian Tyres plc
from January 1, 2025, onwards. He replaced Jukka Moisio, who retired
from the company at the end of 2024. You can read more on Paolo
Pompei’s thoughts on pages 9–10.
In June, Nokian Tyres completed the investment phase at its US
factory by opening a new finished goods warehouse near the
factory. Nokian Tyres began tire production at the US factory in
2020 and has since increased its production capacity, grown the
team to approximately 500 employees, and enhanced the factory’s
capabilities to produce North American specific all-season and all-
weather car tires, thus supplementing our decades-long winter tire
position on the North American market.
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Report by the
Board of Directors
Sustainability
Statement
Financial
Statements
Remuneration
Report
Corporate Governance
Statement
Year 2024
Renewable Reselo Rubber
Recycled carbon black
Nokian Tyres signed a purchase agreement on recycled carbon
black. The aim is to manufacture even more sustainable tires and to
increase the circular economy.
Nokian Tyres Green Step Ligna
Nokian Tyres and UPM presented a joint concept tire – Nokian
Tyres Green Step Ligna. It is the world’s first concept tire
made from the fully renewable UPM BioMotion™ RFF lignin raw
material. The manufacture of the tire uses a new, renewable
material that has the potential to replace most of the carbon
black currently used in tire manufacturing, reducing the need
for fossil materials and carbon dioxide emissions resulting from
tire manufacturing.
Increase the use
of sustainable
raw materials
Nokian Tyres aims to increase
the share of recycled and renewable
raw materials in tires to 50 percent
by 2030. In 2024, the company told
about several projects that promote
achieving this goal. Read more about
our non-financial targets at
company.nokiantyres.com/
about-us/strategy.
Nokian Tyres’ factory in Finland
received the International Sustainability and Carbon Certification (ISCC)
PLUS certificate, making it possible to increase the use of sustainable
raw materials in tires. Nokian Tyres will be introducing the certified raw
materials when launching new flagship products, and it is working to
replace fossil-based raw materials with sustainable alternatives.
For the second consecutive
year, Nokian Tyres was
awarded a Platinum rating
in the EcoVadis corporate
sustainability assessment
The rating means that Nokian Tyres is in the top one percent of
companies assessed by EcoVadis in the past 12 months (10/2024).
Nokian Tyres’ truck and
bus tires were granted the
Design from Finland label.
Nokian Tyres signed a development cooperation agreement with
the Swedish bio material technology company Reselo AB in order to
further develop its renewable Reselo Rubber into a potential new raw
material for tires.
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Board of Directors
Sustainability
Statement
Financial
Statements
Remuneration
Report
Corporate Governance
Statement
Year 2024
On a growth
journey
Paolo Pompei started as President and CEO of Nokian Tyres
in January 2025. Together with the new CEO, we discussed his
views on the company and its growth opportunities.
What are your first impressions
of Nokian Tyres?
I am excited and honored to lead Nokian Tyres. I have long
experience of working in the tire industry and have followed
the company’s journey for over 20 years. I have always admired
Nokian Tyres' products and its strong commitment to innovation.
I was particularly impressed by how the company adapted
after exiting Russia and began building a new route toward
sustainable growth.
Nokian Tyres is currently in an interesting growth phase. Having
navigated through challenging times in the past years, we are
now aiming for growth in Central Europe and North America. In
the Nordic countries, we want to maintain our strong position.
This, combined with excellent products, a valued brand and
continuous development in sustainability, creates an excellent
foundation for growth and profitability.
During the first weeks in the company, I have had the opportu-
nity to meet many of our personnel and visit different locations.
It has been inspiring to see how much expertise we have in
the company and how strong our customer relationships are.
I HAVE ALWAYS
ADMIRED NOKIAN
TYRES' PRODUCTS
AND ITS STRONG
COMMITMENT TO
INNOVATION.
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Remuneration
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Year 2024
What are the company’s key priorities for
the near term?
Our key priorities are clear. We will expand production capacity as
planned, while maximizing the potential of our existing assets. In
Passenger Car Tyres, we have made significant progress in creating
a more balanced manufacturing platform to support growth. Now,
we must focus on making this platform even more productive and
efficient. Additionally, we will enhance Nokian Tyres’ brand awareness
and sharpen our consumer focus to build long-term loyalty.
In the short term, our top priority is the successful ramp-up of
our new factory in Romania while simultaneously enhancing our
manufacturing capabilities in Finland and the US. With dedicated pro-
duction facilities closer to customers and consumers, we are building
a more agile business model to better serve key markets. It helps us
strengthen our position in the Nordic countries, regain market share
in Central Europe and drive growth in North America.
In Heavy Tyres, we also have opportunities to grow through new
products and customers. Vianor supports our sales and premium
brand position in the Nordic countries.
2024 was a challenging year for the car and tire
markets. How do you see the market developing
in 2025, and how will Nokian Tyres succeed in this
environment?
In 2025, we continue to focus on growth. This will be driven by new,
innovative products and an even greater focus on generating value
for consumers. Improving operational efficiency and strict cost con-
trol, together with increasing sales volume and average sales price,
support profitability improvement. Regardless of how the market
develops, I see good opportunities to strengthen our market
position and drive our business forward.
Ultimately, however, a company's success depends on its people.
Nokian Tyres has a highly competent and dedicated team, and we
will continue to strengthen collaboration within the organization.
Together we are stronger. Changes that we made to our organization
and leadership in the beginning of 2025 will help us become more con-
sumer-centric and achieve global synergies and operational excellence
in everything we do. Nokian Tyres is set to drive profitable growth and
deliver innovative, sustainable products while enhancing productivity
and efficiency to create something we can all be proud of.
PAOLO POMPEI
PRESIDENT AND CEO
NOKIAN TYRES IS SET
TO DRIVE PROFITABLE
GROWTH.
How do you plan to strengthen Nokian Tyres'
competitiveness?
Innovation is key to staying ahead of the game. Nokian Tyres is
known for its high-quality premium products that perform well
even in demanding conditions. We focus on high value segments,
especially winter tires. The development of such high-performance
products requires continuous innovation in terms of raw materials,
product properties and manufacturing processes. In recent years, we
have invested significantly in advanced manufacturing technologies
to cater to the evolving consumer needs. By leveraging these assets
and our strong innovation capabilities, we continue to deliver safe,
sustainably manufactured and high-performing tires to the markets.
How do you plan to promote sustainability
at Nokian Tyres?
Sustainability is deeply integrated into our daily operations, and
we work systematically toward a more sustainable future. We have
reduced the environmental impact of our operations year by year.
Our production facilities close to end users help reduce our carbon
footprint further, and our new factory in Romania, which is the
world’s first full-scale zero CO
2
emission tire factory, is an industry
benchmark in sustainability.
Sustainability also means new innovations for the benefit of consum-
ers. We continuously improve the sustainability of our products, for
example by developing tires from recycled or renewable materials.
We are proud to be part of the UN Global Compact and work with
other stakeholders to improve working conditions and human rights
along the supply chain.
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Statement
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Statements
Remuneration
Report
Corporate Governance
Statement
Year 2024
Net sales by geographical area, %
Nordic countries 54% (57)
Other Europe 25% (19)
Americas 21% (23)
Other countries 0% (1)
2024 in numbers
Financial figures 2024 2023
Net sales, EUR million 1,289.8 1,173.6
Segments operating profit margin, % 5.5% 5.5%
Net debt/Segments EBITDA 1−2 3.3 1.3
Dividend, EUR 0.25* 0.55
*The Board’s proposal to the Annual General Meeting.
Figures for sustainable development
(assured) 2024 2023
Scope 1&2 emissions from tire factories per
metric ton of production, kg CO
2
e / t 153 156
Share of recycled and renewable materials
in tires, % 25% N/A
Lost time incident frequency (LTIF) 4.6 4.7
High sustainability risk suppliers audited, % 100% 100%
Engagement score in personnel survey 72 73
2020 2021 2022 2023 2024
Net sales
Segments operating profit
Segments operating profit, %
Net sales and segments operating profit
EUR million %
2,000
1,500
1,000
500
0
40
30
20
10
0
Figures for 2021 and earlier years have not been
restated and include Russia.
1,289.8
1,313.8
1,714.1
1,350.5
71.4
190.2
324.8
17.8
65.1
1,173.6
Financial progress in 2024
In 2024, Nokian Tyres continued the journey to rebuild the company.
The company advanced its growth strategy through strategic
investments to increase capacity and strong innovation efforts to
launch new products. Key milestones included the opening of the
world’s first full-scale zero CO
2
emission tire factory in Romania,
completing the investment phase at the US factory, and introducing
new sustainable materials to tires.
The car and tire market was demanding in 2024 due to economic
uncertainties and low consumer confidence. The Red Sea crisis and
political strikes in Finland impacted negatively in the first half of the
year. Despite the headwind, Nokian Tyres steadily improved sales
volume and enhanced its market share in the key markets.
The net sales of Passenger Car Tyres increased in 2024 driven by
a robust growth in Central Europe. In the Nordic countries, the
company continues in a strong position while further improvement is
required in the North American business. Heavy Tyres performed well
in a weak OE market.
In 2024, Nokian Tyres introduced several new products, with safety,
sustainability, and performance serving as the drivers of product
development. Product ranges suitable for the needs of different
markets and a strong innovation pipeline help Nokian Tyres meet the
evolving consumer needs.
Employees by geographical area, %
Nordics 71% (78)
Other Europe 12% (6)
North America 16% (16)
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Remuneration
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Year 2024
Nokian Tyres passenger car tires are mainly sold in the replacement
tire market, selling tires to consumers via dealers. According to
Global Data, the size of the replacement tire market for passenger
car tires, SUV tires, and pick-up truck tires in Nokian Tyres’ primary
markets in the Nordic countries, Central Europe, and North America
amounted to approximately 600 million tires. The U.S. Tire Manu-
facturers Association (USTMA) estimates that the North American
market covers nearly half of the total market.
There are several trends related to the development of the tire
market, the most important of which are described below:
1. Automotive industry disruption
The automotive industry is in a state of rapid evolution, fueled by the
shift toward electric vehicles (EVs), rise of autonomous driving and
the move from individual to shared car ownership. This changes not
only driving but also the demands placed on vehicle performance
and functionality.
2. Digitalization
The digital transformation of society is gaining speed, and the
number of digital innovations is also growing in the tire industry.
Automation and robotics are changing design and manufacturing.
Data and connectivity create new business models and redefine
the value networks.
Development
and trends in
the tire market
CASE
3. Customer and end user behavior
Customers seek convenience, value alignment, and digital-first
experiences. Both consumers and businesses are turning to online
channels to research, buy, and manage their vehicles and services.
This shift increases the importance of digital platforms, fleet
management, and strong partnerships.
4. Sustainability
Consumer needs, evolving regulation, and stricter standards
encourage the development of environmentally and climate-friendly
production processes and tire technologies. Beyond a company’s
direct emissions, the focus is shifting toward lowering the carbon
footprint of a product's entire life cycle – from raw materials to use
and end-of-life – to minimize the environmental impact at every
stage. This includes innovating new ways to use renewable and
recycled raw materials, optimizing tire durability and optimizing
performance to reduce the energy consumption of driving.
5. Regulatory demands
The tire industry is facing more and more regulations aimed at
reducing its environmental impact and improving safety. These
regulations focus on minimizing Tire and Road Wear Particles (TRWP),
ensuring transparent communication about tire performance and
sustainability, improving fuel efficiency, and minimizing road wear.
6. Market & product variation
The tire market is diversifying to meet customers’ evolving needs, with
specialized tires for fuel efficiency, performance, and autonomous
driving. Variations in market needs have led to increased collaboration
between car and vehicle manufacturers and tire companies to develop
optimal tires for specific vehicle models.
Read more about tire industry trends.
Efficiency and versatility
guide the development of
heavy tires
The efficiency and versatility of heavy-duty machinery and equip-
ment are currently the most decisive factors in the development and
use of heavy tires. Machines are continuously improving in efficiency,
which allows them to perform the same tasks quicker than before
while using fewer resources. Energy consumption can be affected
by reducing the tire’s rolling resistance and by ensuring that the tire
rolls energy-efficiently on roads as well as on fields, for example. This,
in turn, is affected by the tire’s material choices, structure, and tread,
among other things. A versatile tire allows the machine to be used
in many different ways and under different conditions. This requires
innovation and experimental development from the tire manufac-
turer. Tire development is usually done together with customers,
since tires are always a major investment for them.
Read more on the trends in heavy tires: link to the full article on the
website.
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Statements
Remuneration
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Corporate Governance
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Year 2024
Lead the world
to drive smarter
Tires are vital for functioning and safe societies. They enable
everything from people-to-people contacts to safe mobility and
the growth of entire economies. It is perhaps no wonder that up to
1.5 billion tires are produced worldwide every year. In the future, the
number will increase further, as the increasing use of cars, growing
demand for transport services and economic growth in developing
regions are expected to significantly increase the number of vehicles.
For a pioneer in the tire industry, this development poses a tricky
challenge to solve: how to manufacture more tires, while at the same
time making it carbon-neutral, from renewable raw materials – and,
above all, so that the safety and properties of tires are world-class?
Nokian Tyres' vision is to lead the world to drive smarter. We are
proud of our role in the development of mobility and societies, but
at the same time we are aware of the climate and environmental
impacts of our entire industry and its value chain. That is why we
started to tackle this challenge more than 20 years ago – well before
the increase in regulation and general environmental awareness.
Pioneering continues to be at the core of our strategy. To succeed,
we need to challenge ourselves to do more and more – to reinvent
the tire over and over again. In the following pages, we will explain
in more detail our three main lines that summarize our vision of the
world of the future and the goals and actions we take toward it.
Lead to circularity
Our target is to increase the share of
recycled and renewable raw materials in tires
to 50 percent by 2030.
Lead to safety
As a manufacturer of high-quality tires,
Nokian Tyres continuously emphasizes
the utilization and development of new
innovations that improve safety – that is,
reinventing the tire, over and over again.
Lead to zero
Nokian Tyres is an industry pioneer in
climate change mitigation. Our goal is to
have a fully climate-neutral tire – across
the entire chain – available to market in
2050.
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Year 2024
LEAD TO CIRCULARITY
We are continuously seeking
renewable and recycled alternatives
for fossil-based and virgin raw
materials in order to reduce the
environmental impacts.
Collaborations will help us eliminate
virgin fossil raw materials from the
tire industry within the next couple of
decades.
One of our key non-financial target is
to increase the share of recycled and
renewable raw materials in our tires to
50 percent by 2030.
Developing materials
On a journey toward a smaller environmental footprint
Advancing together Driving responsibility
1 2 3
Targeting a tire
made entirely from
recycled and renewable
materials
Tires are traditionally made of various different materials
that are environmentally problematic in terms of their origin,
recyclability, and particle emissions. The key task for Nokian
Tyres in the promotion of the circular economy is to be involved
in the development of new, innovative raw materials, to extend
the life cycle of tires, and to improve the recycling of materials.
Through this work, we want to create new and better material
streams as well as ways of working for the entire industry.
Nokian Tyres’ product development is based on continuous
improvement of safety and environmental factors. These
principles of sustainable safety guide everything that we do.
Our target is to increase the share of recycled and renewable
raw materials in tires to 50 percent by 2030. At the moment,
we are halfway to meeting our goal.
Even though our plans related to the circular economy are
among the most ambitious in the industry, to us they are a
logical continuation of the work that we have been doing for
a long time.
Read more about our work to increase the use of renewable
and recycled raw materials in tires at company.nokiantyres.
com.
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3
1
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Year 2024
LEAD TO SAFETY
The monitoring system uses a Bluetooth
connection to send data and real-time
alerts to the user. This makes it possible
to react in time for sudden changes for
example in tire pressure or temperature.
Attached to the tire’s inner surface,
the sensor collects accurate and
real-time information on tire
pressure and temperature.
The correct tire pressure is important for
grip and stability as well as fuel consumption
and tire service life. High tire temperature is
linked to tire damage. With smart tires, work
can become safer, more efficient and more
economical.
Real-time alerts
Sensors collect data
Smart safety
1 2 3
Smart tires make work safer and more efficient
Targeting the world’s
safest tire
Tires are an important safety feature on a vehicle. Their contact
area may only be the size of four palms, but they determine
whether the vehicle will stay on the road and stop if needed.
Tires become especially important under demanding and rapidly
changing conditions: on snow and ice, wet surfaces, and in case
of unforeseen circumstances. This is part of Nokian Tyres’ special
expertise.
As a manufacturer of high-quality tires, Nokian Tyres conti-
nuously emphasizes the utilization and development of new
innovations that improve safety. The key challenges involve, on
the one hand, developing tires that are safer than before and, on
the other hand, making drivers more aware of the significance of
their tire choices, tire change intervals, and driving style.
Nokian Tyres aims to manufacture the world’s safest tires
for varying conditions. We are a front-runner in our industry,
especially as regards grip characteristics.
Read more about our safety work at company.nokiantyres.com.
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1
3
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LEAD TO ZERO
All electricity used at the factory is
CO
2
emission free. Part of the electricity
used in the factory is generated by
on-site solar power units.
Steam used to cure the tires is generated by
innovative electric boilers which use only zero
CO
2
emission electricity instead of the usual
fossil fuels such as coal or gas.
The tire manufacturing process is very
energy efficient as only the most modern
technology and machinery is utilized.
CO
2
emission free
The world’s first full-scale tire factory with zero CO
2
emissions in Romania
Innovative and electric
Energy efficient
1 2 3
Targeting a climate-
neutral tire
The tire industry plays a key role in the mitigation of climate
change, since the manufacture and use of tires consume
significant amounts of energy and generate greenhouse gas
emissions.
Nokian Tyres is an industry pioneer in climate change mitigation.
In 2020, we were the first company in our industry to commit
to the Science Based Targets initiative. Our goal is to have a
fully climate-neutral tire – across the entire chain – available
to customers in 2050. Our journey has milestones: we aim to
reduce carbon dioxide emissions from tire manufacturing by 42
percent from the 2022 levels by the year 2030.
We have faith in our success, since we are already the industry
leader in cutting emissions from our own factories. In fall
2024, Nokian Tyres opened the world’s first full-scale zero CO
2
emission tire factory in Romania.
Our target is also supported by our participation in the
Polestar 0 project that develops a fully climate-neutral car.
Nokian Tyres is involved in the project as the only tire manufac-
turer, and it is developing zero CO
2
emission premium tires.
Read more about our Lead to Zero thoughts at company.
nokiantyres.com.
1
3
2
NOKIAN TYRES FACTORY IN ORADEA,
ROMANIA IS THE WORLD’S FIRST
FULL-SCALE TIRE FACTORY WITH
ZERO CO2 EMISSIONS.
The tire manufacturing
process is very energy
efficient as only the most
modern technology and
machinery is utilized.
Steam used to cure the tires is
generated by innovative electric boilers
which use only zero CO2 emission free
electricity instead of the usual fossil
fuels such as coal or gas.
All electricity used at the
factory is CO2 emission free.
Part of the electricity used in
the factory is generated by
on-site solar power units.
3 ENERGY EFFICIENT2 INNOVATIVE & ELECTRIC1 C02 EMISSION FREE
16
Report by the
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Sustainability
Statement
Financial
Statements
Remuneration
Report
Corporate Governance
Statement
Year 2024
Materiality is
the basis for
the development
and leadership of
sustainability
For Nokian Tyres, sustainability means conducting business
sustainably and transparently and developing safe, high-quality
products where sustainability is a key characteristic all the way
from raw materials to decommissioning.
A tire is a global product that involves various sustainability aspects:
natural rubber produced in rainforests is combined with industrial
components at our factories, and completed tires are shipped
around the world. Approximately 90 percent of our tires’ carbon
footprint is generated during use, which makes the users of our
products an important part of the value chain.
Materiality shows the way
We are committed to minimizing Nokian Tyres' negative impacts and
maximizing its positive impacts on the economy, environment, and
people. We assess our material topics by conducting a materiality
analysis every three years and reviewing its results each year.
Nokian Tyres carried out a double materiality analysis between
September 2023 and February 2024. According to the analysis, the
most material topics for us are as follows:
• Climate change
• Pollution
• Biodiversity and ecosystems
• Resource use and circular economy
• Own workforce
• Workers in the value chain
• Consumers and end users
• Business conduct
In Nokian Tyres’ Sustainability Statement for 2024, which is published
as part of the Report by the Board of Directors on pages 37–138 of
this Annual Report, we describe the impacts, risks, and opportunities
related to the material topics.
The materiality assessments form the basis for sustainability work at
Nokian Tyres. Our annually updated sustainability roadmap, which is
broken down into seven different areas and more than one hundred
tasks and projects, guides our practical sustainability work.
Our non-financial targets are pursuant to the roadmap, and they also
include the targets for CO
2
emissions that have been approved by
the Science Based Targets initiative.
Read more on our non-financial targets in Nokian Tyres’ at the
company.nokiantyres.com/about-us/strategy.
Nokian Tyres' sustainability development roadmap
Climate
• Climate studies and plans
• Product development
• Energy efficiency
• Energy mix and low carbon
solutions
Environment
• Compliance
• Water efficiency
• Circular economy
• Biodiversity
People
• Occupational health and safety
• Human rights and well-being
• Sustainability culture
Supply chain
• Risk management
• EUDR, GPSNR
• Supply chain CO
2
emissions
Products
and services
• Sustainable raw materials
• Durability, tire and road wear
particles
• Other research projects
Finance,
Corporate
Governance
• Governance and compliance
• Board reviews
• Enterprise risk management
• Value creation for society
Communication
and stakeholder
engagement
• Reporting and communication
• Investor relations
• Climate reporting
• Stakeholder actions
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Year 2024
Results of our
sustainability work in 2024
Systematic work on sustainability has resulted in significant
recognition from various external sustainability assessments.
LOW ESG
RISK LEVEL
IN TOP 10 IN
THE AUTOMOTIVE
COMPONENTS SECTOR
FOR SEVERAL YEARS
TOP 1% OF
ASSESSED COMPANIES
LEADERSHIP
LEVEL
INCLUSION IN
THE CLIMATE
LEADERS LIST
TOP 6%
IN THE AUTO
COMPONENTS SECTOR
Sustainalytics
S&P Global Corporate
Sustainability Assessment
CDP
Climate Change
Financial Times Europe's
Climate Leaders
CDP Supplier
Engagement Rating
MSCI
72 A- A-
PLATINUM RATING
11.7
71.9 AAA
EcoVadis
18
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REPORT BY
THE BOARD OF
DIRECTORS
TIRE TESTING
REQUIRES EXTREME
PROFESSIONAL
COMPETENCE AND
PRECISION
MAKING THE WORLD SAFER,
OVER AND OVER AGAIN
Tire being tested at the Nokian Heavy Tyres Technology Center
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Year 2024
winter tires. Expanding capacity together with market relevant high-
quality products and enhancing commercial capabilities will boost
topline growth. Margin improvement will be driven by increasing
sales volume and average sales price. The objective is to increase
shareholder value through sales growth and improved profitability.
With respect to passenger car tires, the company’s growth strategy
is divided into two phases. The investment phase is expected to run
from 2023 to 2025 and the growth phase from 2026 onwards. In
2023, passenger car tire sales volumes decreased significantly due
to the sale of the Russia operations. Therefore, rebuilding production
capacity during the investment phase is integral to achieving the
EUR 2 billion net sales target. During the growth phase, expanding
capacity combined with the introduction of new top-performing
products and enhanced operational capabilities will underpin the
company's progress toward the financial targets. In the Heavy Tyres
business, the focus is on expanding capacity and strengthening
distribution in Central Europe and North America. Widening product
portfolio and enhanced digital capabilities support long-term growth.
Vianor supports the sales and premium brand position in the Nordic
countries.
In 2024, the company continued its strategic investments to increase
capacity. The new passenger car tire factory in Romania reached
the planned milestones on time and within budget and will start to
support passenger car tire sales from 2025 onwards. In addition, the
investment phase at the US factory was finalized in 2024, enhancing
the company’s capabilities to produce tires tailored for North
American consumers.
Nokian Tyres’ competitive position is based on its ability to
continually develop new, innovative and sustainably manufactured
products. In 2024, Nokian Tyres launched several upgraded tires
with safety, sustainability, and performance being the key drivers of
the product development. With market relevant product offerings
In 2024, Nokian Tyres continued its growth strategy by advancing
strategic investments to increase capacity and maintaining strong
innovation efforts to launch new products. Several important
milestones were achieved, including opening the world’s first full-
scale zero CO
2
emission tire factory in Romania and completing
the investment phase at the US factory.
The car and tire market was demanding in 2024 due to economic
uncertainties and low consumer confidence. The Red Sea crisis and
political strikes in Finland impacted negatively in the first half of the
year. Despite the headwind, Nokian Tyres steadily improved sales
volume and enhanced its market share in the key markets.
At the same time, Nokian Tyres advanced its sustainability
efforts on several fronts. The Science Based Targets initiative
approved the company’s new greenhouse gas emissions reduction
targets, aligning with the latest climate science to limit global
warming to 1.5°C. Reaching a Platinum Medal in the EcoVadis
assessment reflects the continuous improvement of the company’s
sustainability work, placing Nokian Tyres in the top one percent of
companies assessed by EcoVadis in the past 12 months.
Strategy implementation and progress
toward financial targets
Nokian Tyres’ strategy centers on organic growth in the key markets
in the Nordic countries, North America and Central Europe. Focus
continues to be on high value segments, especially on premium
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and a robust innovation pipeline, Nokian Tyres is well-positioned
to meet evolving consumer expectations. Macro trends, such as
the increasing number of new car models, growing SUV and CUV
penetration, and climate change, are driving demand for sustainably
produced, innovative tires.
LONG-TERM FINANCIAL TARGETS
Nokian Tyres’ long-term financial targets, set in 2023, focus on
growth, profitability and capital structure. Nokian Tyres aims for
EUR 2 billion net sales and segments operating profit of approximately
15%. Furthermore, the company aims to maintain net debt to
segments EBITDA ratio between 1 and 2.
The target of the Nokian Tyres’ dividend policy is to pay a dividend of
at least 50% of the net earnings.
Long-term
financial targets
Status
in 2024
Status
in 2023
Organic
growth
Net sales
EUR 2 billion EUR 1.29 billion EUR 1.17 billion
Profitability
Segments operating
profit ~15% 5.5% 5.5%
Capital
structure
Net debt/Segments
EBITDA 1-2 3.3 1.3
20
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Year 2024
2020 2021 2022 2023 2024
Net sales
Segments operating profit
Segments operating profit, %
Net sales and segments operating profit
EUR million %
2,000
1,500
1,000
500
0
40
30
20
10
0
1,289.8
1,313.8
1,714.1
1,350.5
71.4
190.2
324.8
17.8
65.1
1,173.6
Raw material unit costs (EUR/kg) in manufacturing, including inbound
logistics costs, decreased by 5% year-over-year, containing currency
impact.
Operating profit was EUR 1.8 million (2023: 32.1; 2022: 56.7).
Non-IFRS exclusions were EUR -69.6 million (-33.0), of which EUR
-33.7 million (-30.2) were related to the US factory ramp-up, EUR -22.1
million (-3.2) to the preparations for the Romanian factory ramp-up,
and EUR -13.7 million to the other exclusions mainly related to the
inventory write-downs of manufacturing partners’ products that
arrived late for the 2024 summer season due to the Red Sea crisis.
Segments operating profit was EUR 71.4 million (2023: 65.1; 2022:
17.8). The increase was driven by sales volume growth and lower raw
material costs. Segments operating profit percentage was 5.5%
(2023: 5.5%; 2022: 1.3%). Segments ROCE was 3.9% (4.0%).
During the first half of the year, there was negative impact
coming from the Red Sea crisis and the political strikes in Finland,
causing loss of production, delays in shipments, and increased
logistics costs.
Net sales and operating profit
Net sales in 2024 totaled EUR 1,289.8 million (2023: 1,173.6; 2022: 1,350.5) and increased by 9.9%. With comparable currencies, net sales
increased by 10.6% driven by Central Europe. Currency exchange rates affected net sales negatively by EUR 8.0 million.
Net sales by geographical area
2023 Change
CC*
Change
% of total
net sales
in 2024
% of total
net sales
in 2023EUR million 2024
Nordics 696.2 671.7 3.6% 4.0% 54.0% 57.2%
Other Europe 319.6 226.0 41.4% 43.0% 24.8% 19.3%
Americas 270.3 268.7 0.6% 1.2% 21.0% 22.9%
Other countries 3.7 7.2 -48.9% -48.9% 0.3% 0.6%
Tota l 1,289.8 1,173.6 9.9% 10.6% 100.0% 100.0%
Net sales by business unit
2023 Change
CC*
Change
% of total
net sales
in 2024**
% of total
net sales
in 2023**EUR million 2024
Passenger Car Tyres 779.9 653.4 19.4% 20.2% 60.5% 55.7%
Heavy Tyres 235.1 257.1 -8.6% -8.0% 18.2% 21.9%
Vianor 354.9 344.0 3.2% 3.6% 27. 5% 29.3%
Other operations and eliminations -80.1 -80.9 1.1%
Tota l 1,289.8 1,173.6 9.9% 10.6%
*Comparable currencies.
**Includes internal sales.
Following the completion of the Russia exit in March 2023, Nokian Tyres has excluded Russia from its IFRS and non-IFRS segments figures as of January 1, 2023,
and has restated the financial year 2022 accordingly. Figures for 2021 and earlier years have not been restated.
21
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Year 2024
2020 2021 2022 2023 2024
400
300
200
100
0
Gross investments, EUR million
252.1
149.9
119.6
350.1
129.7
In 2024, Nokian Tyres completed the ramp-up of the US factory,
allowing the factory to reach its full capacity run rate by the end
of 2024. In addition, a new warehouse was opened adjacent to
the factory.
The company has initiated a review of alternative ownership
structures of its test center in Spain, where Nokian Tyres intends to
remain an important user also going forward.
2020 2021 2022 2023 2024
20
15
10
5
0
Segments ROCE, %
9.3
15.8
0.9
4.0
3.9
Segments operating profit by business unit
EUR million 2024 2023
Passenger Car Tyres 52.2 36.7
Heavy Tyres 30.0 32.8
Vianor -3.8 3.4
Other operations and eliminations -7.0 -7.8
Segments operating profit total 71.4 65.1
Non-IFRS exclusions -69.6 -33.0
Financial items and taxes
Net financial expenses were EUR 33.3 million (17.8), including net
interest expenses of EUR 30.7 million (14.1). Net financial expenses
include an expense of EUR 2.6 million (3.8) due to exchange rate
differences. Result before tax was EUR -31.5 million (14.2) and taxes
were EUR 8.7 million (-1.7). Segments result before tax was EUR 38.1
million (47.4). Result for the period was EUR -22.8 million (-325.5,
including the result for discontinued operations, i.e. Russian exit).
Segments result for the period was EUR 31.4 million (-298.1).
Earnings per share were EUR -0.17 (-2.36).
Return on equity was -1.7% (2023: -23.4%; 2022: -11.5%).
Guidance given for 2024
In Nokian Tyres’ financial statement release for 2023 published
on February 6, 2024, the company published the following
outlook for 2024:
In 2024, Nokian Tyres’ net sales with comparable currencies and
segments operating profit are expected to grow significantly
compared to the previous year.
Cash flow
In 2024, cash flow from operating activities was EUR 77.4 million
(82.4). Working capital increased by EUR 13.6 million (increased by
43.5). Inventories decreased by 16.2 million (increased by 40.5) and
receivables increased by EUR 63.8 million (increased by 4.0).
Payables increased by EUR 33.9 million (increased by 1.0).
Investments
Investments totaled EUR 350.1 million (252.1). Depreciations and
amortizations were EUR 124.2 million (114.9).
Nokian Tyres is building a new passenger car tire factory in Romania
to expand its manufacturing footprint and rebuild capacity. The
production facility is the world’s first full-scale zero CO
2
emission
tire factory. The first tire was produced at the factory in July 2024,
and the opening ceremony took place in September. The factory is
technically ready to start tire deliveries in 2025. The full capacity of
6 million tires is expected to be reached in 2027, with potential for
further expansion in the future. The site will also house a distribution
facility for storage and distribution of tires. The total investment
is estimated to be approximately EUR 650 million. In July, Nokian
Tyres signed a EUR 150 million loan agreement with the European
Investment Bank to finance the new production facility. The loan was
withdrawn in August. The European Commission approved in August
a EUR 99.5 million Romanian state aid measure to be paid to support
the establishment of the factory.
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Year 2024
Personnel
2024 2023 2022
Group employees
on average 3,850 3,754 3,517
at the end of the review period 3,810 3,433 3,313
in Finland, at the end of
the review period 1,770 1,767 1,728
in North America, at the end of
the review period 618 558 458
Vianor (own) employees, at the end of
the review period 1,428 1,387 1,400
Employee figures are based on the total headcount, including both
full-time and part-time employees. Vianor employees are included in
Group figures.
Salaries, incentives, and other related costs in 2024 were
EUR 256.3 million (2023: 232.2; 2022: 237.5).
2020 2021 2022 2023 2024
Average number of personnel
5,000
4,000
3,000
2,000
1,000
0
3,850
4,859
4,941
3,754
3,517
Financial position
EUR million
Dec 31,
2024
Dec 31,
2023
Cash and cash equivalents 176.1 414.9
Interest-bearing liabilities 789.2 638.5
of which current interest-bearing liabilities 47.3 142.9
Interest-bearing net debt 613.1 223.6
Unused credit limits 803.3 831.3
of which committed 304.4 330.3
Gearing, % 48.2% 16.6%
Equity ratio, % 52.5% 58.0%
In March 2024, one-year extension options were exercised for
a total of EUR 300 million in long-term bilateral sustainability-linked
term loans. Consequently, the maturity dates for these facilities
were extended from April 2025 to April 2026. Additionally, the
EUR 100 million bilateral sustainability-linked term loan due in
May 2024 was refinanced with a similar three-year term loan that
includes extension options of up to two years.
A EUR 150 million bilateral 8-year term loan with the European
Investment Bank (EIB) was withdrawn in August to support
Nokian Tyres’ strategic factory investment in Romania. In November,
one-year extension option was exercised for a EUR 200 million
sustainability-linked revolving credit facility. Thus, the maturity date
for the facility was extended from January 2027 to January 2028.
The average interest rate of interest-bearing financial liabilities
was 4.4%.
The committed credit limits and the EUR 500 million commercial
paper program are used to finance inventories, trade receivables,
and subsidiaries in distribution chains, thereby controlling the typical
seasonality in the Group’s cash flow.
2020 2021 2022 2023 2024
50
40
30
20
10
0
-10
Gearing on Dec 31, %
48.2
-1.1 -6.1
9.8
16.6
2020 2021 2022 2023 2024
80
60
40
20
0
Equity ratio on Dec 31, %
52.5
65.3
68.4
58.0
64.9
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To expand its manufacturing footprint and rebuild capacity, the
company is building a new passenger car tire factory in Romania. The
production facility is the world’s first full-scale zero CO
2
emission
tire factory. The first tire was produced at the factory in July 2024,
and the opening ceremony took place in September. The factory
is technically ready to start tire deliveries in 2025. The full capacity
of 6 million tires is expected to be reached in 2027, with potential
for further expansion in the future. In North America, the company
completed the ramp-up of its US factory, allowing the factory to
reach the full capacity run rate by the end of 2024.
In 2024, the company launched a comprehensive range of summer
and all-season passenger car tires to the Central European market,
including Nokian Tyres Wetproof 1 and Nokian Tyres Powerproof 1
summer tires and Nokian Tyres Seasonproof 1 all-season tire. In
addition, the company introduced its renewed van tire offering for
Central Europe and an all-weather tire Nokian Tyres Remedy WRG5
for North America.
2020 2021 2022 2023 2024
30
25
20
15
10
5
0
-5
Net sales
Segment operating profit
Segment operating profit, %
Net sales and segment operating profit
EUR million %
1,200
1,000
800
600
400
200
0
-200
779.9
871.3
1,199.2
810.7
653.4
52.2
177.8
-24.7
36.7
298.7
Research and development
Nokian Tyres’ competitive position is based on its ability to
continually develop new, innovative and sustainable products.
The company’s R&D team closely monitors market trends and
consumer demands, ensuring that Nokian Tyres’ products meet
the evolving customer needs. In 2024, Nokian Tyres introduced
several new tire models with safety, sustainability, and performance
being the key drivers of the product development. Approximately
50% of R&D investments is allocated to product testing. Nokian Tyres’
R&D costs in 2024 totaled EUR 24.8 million (2023: 24.3; 2022: 29.6),
which is 10.7% (2023: 11.6%; 2022: 12.0%) of the operating expenses
2020 2021 2022 2023 2024
32
24
16
8
0
R&D expenses, EUR million
24.8
22.7
31.9
24.3
29.6
.
Business unit reviews
Passenger Car Tyres
EUR million 2024 2023
Net sales 779.9 653.4
Net sales change, % 19.4% -19.4%
Net sales change in comparable
currencies, % 20.2% -15.8%
Operating profit -15.6 4.1
Operating profit, % -2.0% 0.6%
Segment operating profit 52.2 36.7
Segment operating profit, % 6.7% 5.6%
In 2024, net sales of Passenger Car Tyres totaled EUR 779.9 million
(653.4). With comparable currencies, net sales increased by 20.2%
driven by Central Europe. Average Sales Price with comparable
currencies decreased mainly due to mix.
During the first half of the year, there was negative impact coming
from the Red Sea crisis and the political strikes in Finland, causing
loss of production of 19 days in Passenger Car Tyres, delays in
shipments, and increased logistics costs.
The share of sales volume of winter tires was 55% (63%), the share
of summer tires was 17% (12%), and the share of all-season tires was
28% (25%).
Operating profit was EUR -15.6 million (4.1). Segment operating profit
was EUR 52.2 million (36.7). The increase was mainly due to higher
sales volumes and lower material costs.
24
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Year 2024
2020 2021 2022 2023 2024
30
25
20
15
10
5
0
300
250
200
150
100
50
0
Net sales
Segment operating profit
Segment operating profit, %
Net sales and segment operating profit
EUR million
%
235.1
194.6
254.0
271.0
30.0
23.7
40.3
44.1
257.1
32.8
Vianor, own operations
EUR million 2024 2023
Net sales 354.9 344.0
Net sales change, % 3.2% -5.0%
Net sales change in comparable currencies, % 3.6% 1.8%
Operating profit -3.8 3.4
Operating profit, % -1.1% 1.0%
Segment operating profit -3.8 3.4
Segment operating profit, % -1.1% 1.0%
Number of own service centers at period end 174 174
In 2024, net sales of Vianor totaled EUR 354.9 million (344.0).
With comparable currencies, net sales increased by 3.6%.
Heavy Tyres
EUR million 2024 2023
Net sales 235.1 257.1
Net sales change, % -8.6% -5.1%
Net sales change in comparable currencies, % -8.0% -3.4%
Operating profit 30.0 32.8
Operating profit, % 12.8% 12.8%
Segment operating profit 30.0 32.8
Segment operating profit, % 12.8% 12.8%
In 2024, net sales of Heavy Tyres totaled EUR 235.1 million (257.1).
With comparable currencies, net sales decreased by 8.0% due to
weak market.
Operating profit was EUR 30.0 million (32.8). Segment operating
profit was EUR 30.0 million (32.8). The decrease was mainly caused by
lower volumes.
During the first half of the year, the political strikes in Finland caused
loss of production of 5 days in Heavy Tyres, delays in shipments, and
increased logistics costs.
During the review period, Heavy Tyres introduced an upgraded
Nokian Tyres Noktop 21 range and launched new sizes to the Nokian
Tyres Tractor King, Forest King F2 and Soil King VF tire ranges.
Operating profit was EUR -3.8 million (3.4). Segment operating profit
was EUR -3.8 million (3.4). Profit was impacted by increased costs due
to inflation, and a weak B2B market.
At the end of the year, Vianor had 174 (174) own service centers in
Finland, Sweden and Norway.
2020 2021 2022 2023 2024
400
300
200
100
0
-100
4
3
2
1
0
-1
Net sales
Segment operating profit
Segment operating profit, %
Net sales and segment operating profit
EUR million %
354.9
318.1
342.9
362.0
3.44.0 4.1 3.1
344.0
-3.8
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At the end of December 2024, the number of shares was 138,921,750.
Number of shares (million units)*
Dec 31,
2024
Dec 31,
2023
at the end of period 137.87 137.87
in average 137.87 137.98
in average, diluted 137.87 137.98
*Excluding treasury shares.
EUR million Net sales Cost of sales SGA
Other operating
income/ expenses
Operating
profit
Financial
income/expenses Taxes
Result for
the period
Segments Total 1,289.8 -991.8 -228.1 1.4 71.4 -33.3 -6.7 31.4
US factory ramp-up -32.0 -1.8 -33.7 7.4 -26.4
Romanian factory
preparations -19.5 -2.7 0.0 -22.1 4.4 -17.7
Other exclusions -12.7 -1.0 -13.7 3.5 -10.2
Total non-IFRS
exclusion 0.0 -64.1 -5.4 0.0 -69.6 0.0 15.3 -54.3
Nokian Tyres Total 1,289.8 -1,056.0 -233.5 1.4 1.8 -33.3 8.7 -22.8
Shares and shareholders Authorizations
In April 2024, the Annual General Meeting authorized the Board
of Directors to resolve to repurchase a maximum of 13,800,000
shares in the company by using funds in the unrestricted
shareholders’ equity. The proposed number of shares corresponds
to approximately 9.9 per cent of all shares in the company. The
authorization will be effective until the next Annual General
Meeting, however, at most until June 30, 2025, and it canceled
the authorization given to the Board of Directors by the Annual
General Meeting on April 26, 2023. The Board did not utilize these
authorizations during the review period.
In April 2024, the Annual General Meeting authorized the Board
of Directors to resolve to offer no more than 13,800,000 shares
through a share issue, or by granting special rights under Chapter 10,
Section 1 of the Finnish Limited Liability Companies Act that entitle
to shares (including convertible bonds), on one or more occasions.
The Board may decide to issue new shares or shares held by the
Company. The maximum number of shares included in the proposed
authorization accounts for approximately 9.9 per cent of all shares
in the company. The authorization will be effective until the next
Annual General Meeting, however at most until June 30, 2025, and
it canceled the authorization given to the Board of Directors by the
Annual General Meeting on April 26, 2023. The Board did not utilize
these authorizations during the review period.
In April 2024, the Annual General Meeting authorized the Board of
Directors to resolve on donations in the aggregate maximum amount
of EUR 250,000 to be made to universities, institutions of higher
education or to other non-profit or similar purposes. The donations
can be made in one or more instalments. The Board of Directors may
decide on the donation recipients, purposes of use and other terms
of the donations. The authorization will be effective until the next
Annual General Meeting, however at most until June 30, 2025, and
it canceled the authorization given to the Board of Directors by the
Annual General Meeting on April 26, 2023.
In April 2024, the Board of Directors decided to donate EUR 200,000
to Aalto University School of Business in Finland to be used as
Nokian Tyres and Jukka Moisio scholarships for masters students
going on exchange programs abroad. The funds will be donated in
two equal installments, with the first installment paid in 2024 and the
second installment to be paid in 2025, based on the authorization
given by Nokian Tyres Annual General Meeting.
Own shares
No share repurchases were made during the review period, and the
company did not possess any own shares on December 31, 2024.
Nokian Tyres has an agreement with a third-party service provider
concerning the share-based incentive program for key personnel.
The third party owns Nokian Tyres’ shares related to the incentive
Segments Total to Nokian Tyres Total reconciliation 2024
In addition to IFRS figures, Nokian Tyres publishes alternative non-IFRS segments figures, which exclude the ramp-up of the US factory, the
preparations for the Romanian factory ramp-up and other possible items that are not indicative of the Group’s underlying business performance.
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Corporate Governance
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Major shareholders on December 31, 2024
(Does not include nominee registered shareholders or treasury shares)
Number of
shares
% of
share
capital
1. Solidium Oy 14,031,000 10.10
2. Varma Mutual Pension Insurance Company 5,167,384 3.72
3. Ilmarinen Mutual Pension Insurance
Company 2,626,395 1.89
4. Elo Mutual Pension Insurance Company 2,047,000 1.47
5. Nordea Nordic Small Cap Fund 1,209,160 0.87
6. Nordea Finland Fund 982,255 0.71
7. The State Pension Fund 900,000 0.65
8. OP-Henkivakuutus Ltd. 527,170 0.38
9. Barry Staines Linoleum Ltd. 510,000 0.37
10. Samfundet Folkhälsan i Svenska Finland 441,100 0.32
Changes in ownership
In 2024, Nokian Tyres plc received seven notifications of change
in shareholding pursuant to Chapter 9, Section 5 of the Securities
Markets Act. The details of the notifications are available at
company.nokiantyres.com/news-and-media/press-releases.
Shares owned by the Board members
on December 31, 2024
(Including own holdings and controlled entities)
Board of Directors
Number of
shares
Jukka Hienonen, Chair 52,100
Pekka Vauramo, Deputy Chair 12,863
Elina Björklund, member 3,767
Susanne Hahn, member 13,679
Markus Korsten, member 5,037
Elisa Markula, member 2,651
Christopher Ostrander, member 8,427
Jouko Pölönen, member 32,457
Reima Rytsölä 10,037
Tota l 141,018
Shares owned by the President and CEO
on December 31, 2024
(Including own holdings and controlled entities)
President and CEO
Number of
shares
Jukka Moisio 22,921
program until the shares are given to the participants of the
program. On December 31, 2024, the number of these shares
was 1,052,242, reported as treasury shares (December 31, 2023:
1,054,507). This number of shares corresponded to 0.76% (0.76%) of
the total shares and voting rights in the company.
Trading in shares
A total of 149,557,916 (223,641,182) Nokian Tyres’ shares were
traded in Nasdaq Helsinki in 2024, representing 108% (161%) of the
company’s overall share capital. The average daily volume in 2024
was 595,848 shares (891,001). Nokian Tyres’ shares are also traded on
alternative exchanges.
Nokian Tyres’ share price was EUR 7.35 (8.26) at the end of 2024.
The volume weighted average share price in 2024 was EUR 8.24
(8.40), the highest was EUR 9.63 (11.63) and the lowest was EUR 7.07
(6.18). The company’s market capitalization at the end of 2024 was
EUR 1.0 billion (1.1 billion).
At the end of 2024, the company had 102,389 (94,092) registered
shareholders. The percentage of Finnish shareholders was 70.5%
(61.5%), and 29.5% (38.5%) were non-Finnish holders and foreign
shareholders registered in the nominee register. Public sector
entities owned 18.1% (17.5%), financial and insurance corporations
4.6% (5.4%), households 38.9% (30.7%), non-profit institutions 2.1%
(2.2%), and private companies 6.8% (5.8%).
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Financial
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Remuneration
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Corporate Governance
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Year 2024
Dividend
The AGM decided that a dividend of EUR 0.35 per share shall be
paid. The dividend was paid on May 15, 2024 to shareholders who
were registered in the company’s shareholder register maintained
by Euroclear Finland Oy on the dividend record date of May 2, 2024.
In October 2024, the Board of Directors made a decision on the
payment of a second dividend installment of EUR 0.20 per share
based on the authorization given by the AGM 2024. The second
dividend installment was paid on December 4, 2024 to shareholders
who were registered in the company’s shareholder register
maintained by Euroclear Finland Oy on the dividend record date of
October 31, 2024.
2020 2021 2022 2023 2024
Segments earnings per share
Dividend per share
*The Board’s proposal to the Annual General Meeting.
Segments earnings per share and dividend per share, EUR
2.0
1.5
1.0
0.5
0
-0.5
-1.0
-1.5
-2.0
-2.5
1.04
1.84
-0.86
-2.16
0.23
0.25*
Remuneration for members of the Board of Directors
The AGM decided that the members of the Board of Directors be
paid the following remuneration:
• to the Chair of the Board of Directors EUR 115,000 per year,
• to the Deputy Chair and to the Chairs of the Committees
EUR 76,000 per year each,
• to other members EUR 53,500 per year each.
60 percent of the annual fee is paid in cash and 40 percent in
company shares.
Furthermore, the AGM decided on a meeting fee of EUR 700 for each
Board and Board Committee meeting. For Board members resident
in Europe, the fee for each meeting in Europe outside a member’s
home country is doubled, and for each meeting outside Europe the
fee is tripled. For Board members resident outside Europe, the fee
for each meeting outside a member’s home country is tripled. If a
member participates in a meeting via telephone or video connection,
the remuneration is EUR 700. Travel expenses will be compensated in
accordance with the company’s travel policy.
Members of the Board of Directors and Auditors
The AGM decided that the number of the members of the Board
of Directors shall be nine. Susanne Hahn, Jukka Hienonen, Markus
Korsten, Christopher Ostrander, Jouko Pölönen, Reima Rytsölä
and Pekka Vauramo were re-elected as members of the Board of
Directors, and Elina Björklund and Elisa Markula were elected as new
members of the Board of Directors for a term ending at the closing
of the Annual General Meeting 2025. Jukka Hienonen was re-elected
as the Chair and Pekka Vauramo as the Deputy Chair of the Board of
Directors.
The AGM decided to re-elect authorized public accountant firm Ernst
& Young Oy as the company’s auditor for a term ending at the closing
of the Annual General Meeting 2025.
On December 31, 2024, Nokian Tyres’ Board members and
the President and CEO held a total of 163,939 Nokian Tyres shares.
The shares represent 0.12% of the total number of votes.
Shares owned by the Management Team members on
December 31, 2024
(Including own holdings and controlled entities)
Management Team
Number of
shares
Päivi Antola, Communications,
Investor Relations and Brand 5,799
Elisa Erkkilä, Legal and Compliance 0
Niko Haavisto, Finance 11,250
Anna Hyvönen, Passenger Car Tyres and Vianor 22,010
Adrian Kaczmarczyk, Supply Operations 3,420
Jukka Kasi, Products and Innovations 48,616
Päivi Leskinen, Human Resources 1,182
Manu Salmi, Heavy Tyres and Nokia Factory 31,657
Tota l 123,934
Managers’ transactions
Nokian Tyres announced managers’ transactions on May 6, July 22
and July 24, 2024. The details of the transactions are available at
company.nokiantyres.com/news-and-media/press-releases.
The Annual General Meeting 2024
On April 30, 2024, the Annual General Meeting adopted the financial
statements for 2023, discharged the members of the Board of
Directors and the President and CEO from liability for the financial
year 2023 and adopted the Company’s Remuneration Report and
Remuneration Policy for governing bodies. Further information
is available at company.nokiantyres.com/investors/corporate-
governance/annual-general-meeting/agm-2024.
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Board of Directors' working arrangements
In its organizing meeting on April 30, 2024, the Board of Directors
decided to establish the Board’s Investment Committee. The
Committee focuses on strategic investments to ensure that
they maximize shareholder value. Furthermore, the Board elected
members to the Board’s People and Sustainability Committee,
Audit Committee, and Investment Committee as follows:
• The People and Sustainability Committee: Elina Björklund (Chair),
Susanne Hahn and Jukka Hienonen
• The Audit Committee: Jouko Pölönen (Chair), Reima Rytsölä and
Elisa Markula
• The Investment Committee: Christopher Ostrander (Chair),
Markus Korsten and Pekka Vauramo
Shareholders’ Nomination Board
The following members have been appointed to Nokian Tyres’
Shareholders' Nomination Board 2024:
• Mr. Petter Söderström (Investment Director, Solidium Oy),
appointed by Solidium Oy (since January 7, 2025)
• Mr. Mikko Mursula (Deputy CEO, Investments, Ilmarinen Mutual
Pension Insurance Company), appointed by Ilmarinen Mutual
Pension Insurance Company
• Ms. Marie Karlsson (Chief Investment Officer, Nordic, Finnish and
Swedish Equities at Nordea Asset Management) appointed by
Nordea funds
• Mr. Timo Sallinen (Director, Head of Listed Securities, Varma
Mutual Pension Insurance Company), appointed by Varma Mutual
Pension Insurance Company
• Mr. Jukka Hienonen, Chair of the Board, Nokian Tyres plc
After the review period, on January 17, 2025, the Nomination
Board submitted to Nokian Tyres’ Board of Directors its proposals
for the 2025 Annual General Meeting.
Changes in management
Elisa Erkkilä was appointed Nokian Tyres’ General Counsel and
a member of the Group Management Team as of June 1, 2024.
Paolo Pompei was appointed Nokian Tyres’ President and CEO
as of January 1, 2025. Pompei succeeds the President and CEO
Jukka Moisio, who retired from the company in the end of 2024.
In October, Nokian Tyres announced that Anna Hyvönen, EVP
Passenger Car Tyres and Vianor, has decided to leave Nokian Tyres.
Hyvönen will continue in the company until July 2025.
Corporate sustainability
In February 2024, Nokian Tyres scored an A- from CDP for its actions
aimed at reducing greenhouse gas emissions and mitigating climate
change-related risks. Scores A and A- represent leadership level.
This is the fourth consecutive year that Nokian Tyres has received
an A- for its climate work.
In February 2024, Nokian Tyres announced that it had made a long-
term purchase agreement for recovered carbon black with a tire
recycling joint venture. The agreement will help Nokian Tyres reach
one of its key sustainability targets, which is to increase the share of
recycled and renewable raw materials in tires to 50 percent by 2030.
Nokian Tyres started to use recovered carbon black in a commercial
product line in 2022, and the made agreement enables its increased
utilization in tires accelerating circularity and sustainability in the tire
industry.
In June 2024, Nokian Tyres introduced, in partnership with UPM,
a concept tire made with a new renewable lignin raw material.
The innovative material, called UPM BioMotion™ RFF, has potential
to replace a significant part of the carbon black currently used in
tire production, reducing the need for fossil materials and lowering
carbon emissions in tire manufacturing.
Authorizations
The Annual General Meeting authorized the Board of Directors
to resolve to repurchase a maximum of 13,800,000 shares in the
company by using funds in the unrestricted shareholders’ equity. The
proposed number of shares corresponds to approximately 9.9 per
cent of all shares in the company. The authorization will be effective
until the next Annual General Meeting, however, at most until June
30, 2025, and it canceled the authorization given to the Board of
Directors by the Annual General Meeting on April 26, 2023.
The Annual General Meeting authorized the Board of Directors to
resolve to offer no more than 13,800,000 shares through a share
issue, or by granting special rights under Chapter 10, Section 1 of
the Finnish Limited Liability Companies Act that entitle to shares
(including convertible bonds), on one or more occasions. The Board
may decide to issue new shares or shares held by the Company. The
maximum number of shares included in the proposed authorization
accounts for approximately 9.9 per cent of all shares in the company.
The authorization will be effective until the next Annual General
Meeting, however at most until June 30, 2025, and it canceled the
authorization given to the Board of Directors by the Annual General
Meeting on April 26, 2023.
The Annual General Meeting authorized the Board of Directors to
resolve on donations in the aggregate maximum amount of EUR
250,000 to be made to universities, institutions of higher education
or to other non-profit or similar purposes. The donations can be
made in one or more instalments. The Board of Directors may decide
on the donation recipients, purposes of use and other terms of the
donations. The authorization will be effective until the next Annual
General Meeting, however at most until June 30, 2025, and
it canceled the authorization given to the Board of Directors by
the Annual General Meeting on April 26, 2023.
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Corporate Governance
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Year 2024
the value chain by 2050. The SBTi approval means that Nokian Tyres’
targets are considered to be in line with what the latest climate
science deems necessary to limit global warming to 1.5°C.
Share-based long-term incentive scheme for the
management and selected key employees of
Nokian Tyres plc
In February 2024, the Board of Directors confirmed to continue with
new performance periods for the share-based incentive plan for
the Group’s key employees. The aim is to align the objectives of the
Nokian Tyres’ shareholders and key employees for increasing the
value of the company in the long-term, to retain the key employees
at the company and to offer them a competitive incentive scheme
that is based on earning and accumulating shares.
The Performance Share Plan 2023–2027 consists of three
performance periods covering the financial years 2023–2024,
2024–2025 and 2025–2027. The Board will decide annually on the
commencement and details of the performance periods.
In the plan, the target group is given an opportunity to earn Nokian
Tyres plc shares based on the achievement of the targets set for
the performance periods. Potential rewards of the plan will be paid
by the end of April 2026, 2027, and 2028 respectively. The rewards
will be paid partly in Nokian Tyres plc shares and partly in cash. The
cash proportion of the reward is intended for covering taxes and
tax-related expenses arising from the rewards to the participants.
In general, no reward will be paid if the participant’s employment or
director contract terminates before the reward payment.
The rewards from the performance period 2024–2025 are based
on EBITDA, increase in passenger car tire production volume and
reduction in direct CO
2
emissions. The possible reward will be paid
during the first half of 2027 after a one-year retention period in case
the targets set by the Board of Directors for Performance Period
2024–2025 are met.
The President and CEO of the company and members of the
Management Team are obliged to hold 50 per cent of the received
net shares until the value of the participant’s total shareholding
in the company corresponds to the participant’s annual gross
salary. The shareholding amount must be maintained as long as the
membership in the Management Team or the position as a President
and CEO continues.
The value of the gross rewards to be paid from the performance
period 2024–2025 will correspond to an approximate maximum total
of 1,760,000 Nokian Tyres plc shares, including the cash proportion.
Approximately 150 persons, including the President and CEO of the
company and other Management Team members, belong to the
target group of the performance period.
Restricted Share Plan 2024
The Board of Directors decided to continue the Restricted Share
Plan, using the same structure as in the previous years. The purpose
of the Restricted Share Plan is to serve as a complementary long-
term incentive tool, used selectively for retention of Nokian Tyres key
employees. It consists of annually commencing individual Restricted
Share Plans, each with a three-year retention period after which the
share rewards granted within the plan will be paid to the participants
in shares of Nokian Tyres plc and partly in cash.
The commencement of each individual plan is subject to a separate
approval by the Board of Directors.
A precondition for the payment of the share reward based on the
Restricted Share Plan is that the employment relationship of a
participant with Nokian Tyres continues until the payment date of
the reward. In addition to this precondition, a financial performance
criterion is applied to Nokian Tyres Management Team. The criterion
is a threshold value for segments Return on Capital Employed
(ROCE), which must be exceeded for a potential payment of a share
reward based on the Restricted Share Plan 2024–2026.
In August 2024, Nokian Tyres’ factory in Nokia, Finland obtained
the International Sustainability and Carbon Certification (ISCC)
PLUS. With the certification, Nokian Tyres is able to introduce new
sustainable, ISCC PLUS certified raw materials in its tires. Nokian
Tyres will introduce the certified raw materials when new flagship
products are launched.
In September 2024, Nokian Tyres signed a development agreement
with a Swedish biomaterial science company Reselo AB to further
develop their renewable material Reselo Rubber as a potential
new raw material in tires. Reselo Rubber is a completely renewable
material made from birch bark sourced from the residue of the
global pulp, paper and plywood industry. The aim of the cooperation
agreement is to develop the material further to adapt it for
commercial tire production.
In September 2024, Nokian Tyres celebrated the opening of its new
passenger car tire factory in Romania. The factory operates without
utilizing any fossil energy, making it the world’s first full-scale tire
factory with zero CO
2
emissions. Part of the electricity used in the
factory is generated by on-site solar power units. Steam used to
cure the tires is generated by innovative electric boilers, which use
fully CO
2
emission free electricity. In addition, the tire manufacturing
process is energy efficient as it utilizes the most modern technology
and machinery.
In October 2024, Nokian Tyres was awarded a Platinum Medal in
the EcoVadis corporate sustainability assessment for the second
consecutive year. The rating means that the company is in the top
one percent of companies assessed by EcoVadis in the past
12 months.
In November 2024, the Science Based Targets initiative (SBTi)
approved Nokian Tyres’ new greenhouse gas (GHG) emissions
reduction targets, including both near-term targets for 2030 and
long-term targets to reach net-zero GHG emissions across
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Financial
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Remuneration
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Corporate Governance
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Year 2024
Significant risks, uncertainties, and
ongoing disputes
Several uncertainties can impact Nokian Tyres’ business and
financial performance. The Group has adopted a risk management
policy, approved by the Board of Directors, which supports the
achievement of strategic goals and ensures business continuity. The
risk management process aims to identify and evaluate threats and
opportunities and to plan and implement practical measures for each
risk. Nokian Tyres describes the overview of its risk management
systems in the Corporate Governance Statement.
For example, the following risks could potentially have an impact on
Nokian Tyres’ business:
ECONOMIC AND GEOPOLITICAL UNCERTAINTY
Nokian Tyres is exposed to risks related to consumer confidence
and macroeconomic and geopolitical conditions. Political tensions
and increasing global uncertainty may lead to economic recession,
create trade barriers, and cause global or regional crises that may
significantly affect product demand or cause widespread disruptions
in production and supply chain. These factors may adversely affect
Nokian Tyres’ financial performance and the collection of trade
receivables.
Risk mitigation measures:
continuous monitoring of the operating
environment and markets. The company’s ability to respond quickly
and adapt its operations to a changing environment. Acting in
accordance with the contingency plan.
CHANGES IN CONSUMER BEHAVIOR
The tire wholesale and retail landscape is evolving with digitalization
to meet changing consumer needs. Nokian Tyres aims to adapt
to changes in the sales channel and to innovate and develop new
products and services that appeal to customers and consumers.
Despite extensive testing of products, issues related to product
quality and inability to meet customer needs or demands of
performance and safety can harm Nokian Tyres’ reputation and
brand, thereby negatively affecting the company’s financial
profitability and growth opportunities.
Risk mitigation measures:
ensuring high-quality research and
development activities. Continuous monitoring of the markets and
customer needs. Sufficient resources for product testing. Developing
distribution channels and network.
IMPLEMENTATION OF THE INVESTMENT PROJECT IN ROMANIA
To ensure tire availability, Nokian Tyres is investing in new zero CO2
emission production capacity in Romania. Delay in the planned start
of commercial production and the ramp-up of production processes
may negatively affect Nokian Tyres’ financial performance and
growth opportunities, especially in Central Europe.
Risk mitigation measures:
close monitoring and management of
the investment project. Preparation and continuous follow-up of a
risk management plan. Ability to quickly react to significant changes.
Retention and recruitment of skilled personnel.
CURRENCY MARKET
Nokian Tyres’ operations are exposed to currency risks arising from
currency transactions and the translation of subsidiary financial
statements, which may affect Nokian Tyres’ results and profitability.
The most significant currency risks are caused by the Swedish and
Norwegian krona and the US and Canadian dollar. Approximately 60%
of the Group’s sales are generated outside the euro-zone.
Risk mitigation measures:
hedging against the effects of exchange
rate fluctuations (see note 29 to the financial statements).
The RSP 2024–2026 within the Restricted Share Plan structure
commenced effective as of the beginning of 2024 and the potential
share reward thereunder will be paid in the first half of 2027.
The possible rewards paid based on RSP 2024–2026 correspond
approximately to a maximum of 120,000 gross shares.
Payments for share-based plans that ended in 2023
In February 2024, the Board of Directors approved outcomes of the
Performance and Restricted share plans 2021–2023.
PERFORMANCE SHARE PLAN 2021–2023:
The performance measure for the Performance Share Plan 2021–
2023 was based on segments Earnings Per Share (EPS) and segments
Return on Capital Employed (ROCE), both with an equal weight of
50%. Both targets did not meet the minimum level and thereby, no
payments were conducted.
RESTRICTED SHARE PLAN 2021–2023:
The three-year restriction period of the Restricted Share Plan
2021–2023 ended after financial year 2023. Some key employees
participate in the share-based incentive plan, including a member of
the Management Team. The financial threshold value for segments
Return on Capital Employed (ROCE) applied for the Management
Team member was achieved. The rewards paid corresponded to
a total of 4,600 Nokian Tyres plc gross shares. The rewards were
paid at the end of March 2024. A precondition for the payment
of the share reward based on the Restricted Share Plan was that
the employment relationship of a participant with Nokian Tyres
continued until the payment date of the reward.
The total number of shares of the company did not change due to
payments for share-based plans that ended in 2023.
The Board of Directors anticipates that no new shares will be issued
based on the share-based incentive schemes and that the schemes
will, therefore, have no dilutive effect on the registered number of
the company's shares.
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ENVIRONMENT, SOCIAL RESPONSIBILITY AND GOVERNANCE
Various aspects of corporate sustainability, including product
quality, safety, the environment, and human rights, are increasingly
important. Legislation and regulation, particularly around
environmental, social responsibility and governance (ESG) issues, are
increasing and affecting all actors in the value chain. Non-compliance
with laws, regulations, or standards by Nokian Tyres or its suppliers,
customers, or partners, neglecting new and tightening requirements,
or incorrectly interpreting them may result in additional costs for
Nokian Tyres or lead to fines and damage the company's reputation
and brand. Over-reliance on individual suppliers increases the risk
related to the availability of sustainable raw materials.
Risk mitigation measures:
active monitoring of upcoming laws and
regulations. Development and implementation of internal guidance,
processes and training to ensure compliance. Strong commitment
to achieving ESG targets. Expanding the supplier network. Regular
environmental, human rights, and quality audits.
CLIMATE CHANGE
Tire industry may be subject to risks caused by climate change, such
as changes in consumer tire preferences and regulatory changes.
Extreme weather events may also affect natural rubber production,
and fluctuations in raw material prices as well as new environmental
fees may increase, potentially impacting profitability. Nokian Tyres
is committed to reducing GHG emissions from its operations to
combat climate change. The company calculates the GHG emissions
from its operations annually and reduces them systematically.
Risk mitigation measures:
increasing use of recyclable and renewable
raw materials. Membership in industry associations helps identify new
sustainable product development and business opportunities.
EMPLOYEE RETENTION AND COMPETENCE
Nokian Tyres’ success relies heavily on employing the right people
in the right positions. Failure to attract competent and committed
professionals, coupled with an inability to provide a motivating work
environment, may have an adverse impact on the implementation of
Nokian Tyres’ strategy and the achievement of its financial targets.
Risk mitigation measures:
creating an attractive and safe workplace,
including modern work tools and competitive salaries and other
benefits. Developing employer brand to attract the best talent.
Ensuring critical competencies and targeted recruitment.
Legal proceedings
In January 2024, the European Commission initiated an unannounced
inspection at Nokian Tyres plc’s headquarters in Nokia, Finland. The
European Commission has expressed its concerns that the inspected
tire manufacturing companies may have violated EU antitrust rules
that prohibit cartels and restrictive business practices. Nokian Tyres
does not have information on the outcome of the inspection, and it
cannot comment on the ongoing investigation. Nokian Tyres is fully
co-operating with the authorities.
Lawsuits in the United States and Canada followed the news of the
European Commission inspection. Nokian Tyres was named as a
defendant in these lawsuits, along with other tire manufacturers.
The lawsuits allege violations by the defendants of antitrust laws
with respect to new replacement tires for passenger cars, vans,
trucks and busses sold in the relevant jurisdictions. The U.S. lawsuits
have been consolidated to a multidistrict litigation in the U.S. District
Court for the Northern District of Ohio. Nokian Tyres considers the
lawsuits to be without merit, however, the ultimate outcome of which
cannot be predicted at this time.
INFORMATION TECHNOLOGY AND CYBERSECURITY
The availability of information systems and network services
is crucial to Nokian Tyres. Unplanned interruption in critical
information systems and network services may cause disruption
to the continuity of operations. These systems and services may
also be exposed to cyberattacks, which may lead to a leakage of
confidential information, violation of data privacy regulations or
intellectual property rights, production and delivery interruptions,
or reputational damage. Risk analyses and projects related to
cybersecurity, data protection, and customer information are
continuously a special focus area for the company.
Risk mitigation measures:
sufficient investments and resources in IT
infrastructure and capabilities, as well as cybersecurity. Appropriate
plans to respond to disruptions in information systems and network
services, including backup systems and recovery plans. Continuous
monitoring of cybersecurity and data protection and vulnerability
management. Employee training.
DIVERSIFIED CUSTOMER BASE
Building a diversified customer base and fostering strong customer
relationships help reduce sales risk and create long-term business
stability. Excessive concentration of the customer base can make
the company dependent on a limited number of large customers,
exposing the business to risks and potentially leading to a decline in
sales and profitability.
Risk mitigation measures:
continuous monitoring of the markets
and proactive response to changes in the customer base. Deepening
cooperation with existing key customers, for example, in the
development of new products. Expanding the customer base
geographically and in selected segments within current markets.
Developing the distribution network and services, especially in key
growth areas.
32
Report by the
Board of Directors
Sustainability
Statement
Financial
Statements
Remuneration
Report
Corporate Governance
Statement
Year 2024
Nokian Tyres’ Management Team as of March 1, 2025:
Paolo Pompei, President and CEO
Niko Haavisto, CFO
Tommi Alhola, SVP Passenger Car Tyres, Central Europe
Elisa Erkkilä, SVP Legal, General Counsel
Lauri Halme, SVP Passenger Car Tyres, North America
Adrian Kaczmarczyk, SVP Operations
Jukka Kasi, SVP Products & Innovation
Päivi Leskinen, SVP Human Resources
Manu Salmi, SVP Heavy Tyres, SVP Manufacturing (interim)
Päivi Antola, SVP Communications, Investor Relations and Brand, is
leaving Nokian Tyres to join another company.
Guidance for 2025
In 2025, Nokian Tyres’ net sales and segments operating profit are
expected to grow compared to the previous year.
Assumptions for 2025
Tire demand in Nokian Tyres’ markets is expected to remain at the
previous year’s level in 2025. Development of global economy and
geopolitical uncertainties may cause volatility to the company's
business environment.
Nokian Tyres' sales growth is based on increasing capacity in the
Romanian and US factories as well as good availability of finished
goods inventories.
The proposal for the use of profits
by the Board of Directors
The distributable funds in the Parent company total
EUR 773.2 million.
The Board of Directors proposes to the 2025 Annual General Meeting
that the distributable funds are to be used as follows:
a dividend of 0.25 EUR/share
be paid out, totaling EUR 34.5 million
retained in equity EUR 738.7 million
Tota l EUR 773.2 million
The Board of Directors proposes that a dividend of EUR 0.25
per share shall be paid to shareholders who are registered in the
company's shareholder register maintained by Euroclear Finland
Oy on the dividend record date of May 9, 2025. The payment date
proposed by the Board of Directors is May 20, 2025.
No material changes have taken place in the financial position of
the company since the end of the financial year. The liquidity of the
company is good, and the proposed distribution of profits does not
compromise the financial standing of the company as perceived by
the Board of Directors.
Notice to the 2025 Annual General Meeting will be published during
the week commencing March 17, 2025.
Helsinki, February 4, 2025
Nokian Tyres plc
Board of Directors
In May 2017, the Finnish Financial Supervisory Authority filed a
request for investigation with the National Bureau of Investigation
regarding possible securities market offences. In October 2020, the
prosecutor announced the decision to press charges against a total
of six persons who acted as Board members and the President and
CEO of Nokian Tyres in 2015–2016. The prosecutor also claimed a
corporate fine against the company. In addition, four persons who
were employees at Nokian Tyres in 2015 were charged for abuse
of inside information. The District Court of Helsinki dismissed all
charges and claims by the prosecutor in its ruling in June 2022. The
decision is not yet legally binding, and the prosecutor has appealed
against the decision of the District Court. The proceedings are
ongoing in the Appeal Court.
Tax disputes
There are no ongoing tax disputes in Nokian Tyres entities. Routine
tax audits in Nokian Tyres Group entities may possibly lead to a
reassessment of taxes.
Matters after the review period
After the review period, on January 23, 2025 Nokian Tyres plc
received a notification of change in shareholding pursuant to
Chapter 9, Section 5 of the Securities Markets Act. The details of the
notification are available at company.nokiantyres.com/news-and-
media/press-releases/.
On February 4, 2025, Nokian Tyres announced changes to the
Management Team to increase consumer focus, global synergies
and operational excellence. New members joining the Management
Team are Tommi Alhola (SVP Passenger Car Tyres, Central Europe)
and Lauri Halme (SVP Passenger Car Tyres, North America). The new
Management Team structure will enable a dedicated focus on Nokian
Tyres’ growth regions to achieve the company’s long-term objectives.
As part of the organizational changes, the company will reorganize all
Manufacturing facilities under one leadership and combine Marketing
and Communications in one strategic global function.
33
Report by the
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Sustainability
Statement
Financial
Statements
Remuneration
Report
Corporate Governance
Statement
Year 2024
Figures in EUR million unless otherwise indicated
2024 2023*
2022 2021 2020 2019 2018 2017 2016 2015
Net sales 1,289.8 1,173.6 1,350.5* 1,714.1 1,313.8 1,595.8 1,595.6 1,572.5 1,391.2 1,360.1
change, % 9.9% -13.1% -21.2%* 30.5% -17.1% 0.0% 1.5% 13.0% 2.3% -2.1%
Operating margin (EBITDA)
1
126.0 147.0 170.2* 425.6 275.9 441.7 465.8 463.7 395.2 378.6
Depreciation and amortization 124.2 114.9 110.1* 140.5 131.0 125.2 93.4 98.3 84.7 82.6
Impairments
2
- - 3.4* 17.0 24.9
Operating profit (EBIT) 1.8 32.1 56.7* 268.2 120.0 316.5 372.4 365.4 310.5 296.0
% of net sales 0.1% 2.7% 4.2%* 15.6% 9.1% 19.8% 23.3% 23.2% 22.3% 21.8%
Profit before tax -31.5 14.2 11.2* 258.2 106.0 336.7 361.7 332.4 298.7 274.2
% of net sales -2.4% 1.2% 0.0* 15.1% 8.1% 21.1% 22.7% 21.1% 21.5% 20.2%
Return on equity, % -1.7% -23.4% -11.5%* 13.1% 5.2% 24.6% 20.0% 15.1% 18.7% 19.6%
Return on capital employed, % 0.5% 2.2% 3.1% 13.7% 6.0% 17.6% 23.3% 22.4% 19.9% 20.3%
Total assets 2,423.7 2,325.2 2,209.7 2,383.5 2,336.7 2,332.6 2,092.9 1,877.4 1,975.7 1,754.8
Interest-bearing net debt 613.1 223.6 140.9 -98.7 -17.2 41.1 -315.2 -208.3 -287.4 -209.7
Equity ratio, % 52.5% 58.0% 64.9% 68.4% 65.3% 75.9% 71.0% 78.2% 73.8% 70.8%
Gearing, % 48.2% 16.6% 9.8% -6.1% -1.1% 2.3% -21.2% -14.2% -19.7% -16.9%
Net cash from operating activities 77.4 82.4 -4.3 396.5 422.4 219.8 536.9 234.6 364.4 283.4
Capital expenditure 350.1 252.1 129.7 119.6 149.9 290.1 226.5 134.9 105.6 101.7
% of net sales 27.1 % 21.5% 9.6% 7.0% 11.4% 18.3% 14.2% 8.6% 7.6% 7.5%
R&D expenditure 24.8 24.3 29.6 31.9 22.7 22.7 20.8 21.8 20.3 18.7
% of net sales 1.9% 2.1% 2.2% 1.9% 1.7% 1.3% 1.3% 1.4% 1.5% 1.4%
Dividends
34.5
3
75.8 76.0 76.0 165.9 158.4 218.1 214.2 208.0 202.0
Personnel, average during the year 3,850 3,754 3,517* 4,941 4,859 4,942 4,790 4,630 4,433 4,421
*The figures for years 2023 and 2022 are compareble and present continuing operations.
1
DA in EBITDA includes impairments from 2020 onwards.
2
Impairments are presented from 2020 onwards.
3
The Board’s proposal to the Annual General Meeting.
Consolidated key financial indicators
34
Report by the
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Sustainability
Statement
Financial
Statements
Remuneration
Report
Corporate Governance
Statement
Year 2024
2024 2023
2022 2021 2020 2019 2018 2017 2016 2015
Earnings per share, EUR -0.17 -2.36 -1.27 1.49 0.62 2.89 2.15 1.63 1.87 1.80
change, % -93.0% 85.8% -185.1% 140.2% -78.5% 78.1% 32.4% -13.0% 3.6% 15.1%
Earnings per share (diluted), EUR -0.17 -2.36 -1.27 1.49 0.62 2.89 2.14 1.61 1.86 1.80
change, % -93.0% 85.8% -185.1% 140.2% -78.5% 35.2% 32.5% -13.2% 3.2% 15.0%
Earnings per share continuing operations, EUR -0.17 0.09 0.11
change, % -282.8% -17.9% 0.0%
Earnings per share discontinued operations, EUR - -2.45 -1.38
change, % -100.0% 77.5% 0.00
Cash flow per share, EUR 0.56 0.60 -0.03 2.87 3.05 3.89 3.91 1.72 2.70 2.12
change, % -6.0% -2020.0% -101.1% -6.0% -21.5% -0.7% 127.2% -36.3% 27.4% -12.7%
Dividend per share, EUR 0.25 0.55 0.55 0.55 1.20 1.14 1.58 1.56 1.53 1.50
Dividend payout ratio, %
-150.9% -23.3% -43.3% 88.5% 192.9% 39.5% 73.9% 96.7% 82.6% 83.9%
Equity per share, EUR 9.23 9.77 10.37 11.78 11.01 12.76 10.79 10.74 10.75 9.24
P/E ratio -44.4 -3.5 -7. 5 22.3 46.4 8.9 12.5 23.3 19.0 18.4
Dividend yield, %
3.4% 6.7% 5.7% 4.0% 4.2% 4.5% 5.9% 4.1% 4.3% 4.5%
Market capitalization Dec 31 1,021.1 1,147.5 1,330.9 4,626.1 4,003.7 3,560.6 3,702.9 5,188.7 4,814.0 4,458.3
Number of shares during the year, average, million units 137.87 137.98 138.25 138.22 138.46 138.17 137.26 136.25 134.86 133.63
diluted, million units 137.87 137.98 138.25 138.22 138.46 138.38 138.14 137.28 135.56 133.74
Number of shares Dec 31, million units 137.87 137.87 138.25 138.22 138.22 138.72 137.79 136.75 135.68 134.39
Number of shares entitled to a dividend, million units 137.87 137.87 138.25 138.22 138.22 138.92 138.07 137.28 135.93 134.69
Per share data
35
Report by the
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Sustainability
Statement
Financial
Statements
Remuneration
Report
Corporate Governance
Statement
Year 2024
Formulas for the key financial indicators
Definitions
Return on equity, % =
Profit for the period x 100
Total equity (average)
Return on capital
employed, % =
Profit before tax + interest and other financial expenses x 100
Total assets (average) - non-interest-bearing debt
Equity ratio, % =
Total equity x 100
Total assets - advances received
Gearing, % =
Interest-bearing net debt x 100
Total equity
Earnings per share, EUR =
Profit for the period attributable to the equity holders of the parent
Average adjusted number of shares
1
during the year
Earnings per share (diluted
2
), EUR =
Profit for the period attributable to the equity holders of the parent
Average adjusted and diluted
2
number
1
of shares during the year
Cash flow per share, EUR =
Cash flow from operations
Average adjusted number of shares
1
during the year
Dividend per share, EUR =
Dividend for the year
Number of shares entitled to a dividend
Dividend payout ratio, % =
Dividend for the year x 100
Net profit
Equity per share, EUR = Equity attributable to equity holders of the parent
Adjusted number of shares
1
on the balance sheet date
P/E ratio = Share price, Dec 31
Earnings per share
Dividend yield, % = Dividend per share
Share price, Dec 31
1
Without treasury shares
2
The share options affect the dilution as the average share market price for the financial year exceeds the defined subscription price
36
MAKING THE WORLD SAFER,
OVER AND OVER AGAIN
Teamwork between the sustainability team, purchasing and R&D
SUSTAINABILITY
STATEMENT
THE PRINCIPLES OF
SUSTAINABLE SAFETY
GUIDE EVERYTHING
THAT WE DO
Nokian Tyres integrates
sustainability deeply into
the business model.
Report by the
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Financial
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Remuneration
Report
Corporate Governance
Statement
Year 2024 Sustainability
Statement
General
information
ESRS 2 General disclosures 39
General information
Environmental information
Social information
Governance information
38
PLACEHOLDER
Report by the
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Financial
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Remuneration
Report
Corporate Governance
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Year 2024 Sustainability
Statement
GENERAL INFORMATION
ESRS 2 General
disclosures
BP-1 Basis for preparation of the Sustainability
Statement
The Sustainability Statement has been prepared on a consolidated
basis for the entire Nokian Tyres Group, scope of consolidation being
the same as for the Financial Statements including the parent com-
pany and all the companies in which the group directly or indirectly
holds more than 50 percent of the votes unless otherwise stated in
connection with the disclosed information.
During the materiality assessment, both Nokian Tyres’ own opera-
tions and the company’s value chain were considered. The Statement
includes information about the value chain when relevant regarding
the following material impacts, risks, or opportunities:
• E1 Climate change: Greenhouse gas emissions (upstream and
downstream value chain)
• E2 Pollution: Tire and road wear particles and their reduction
(downstream value chain)
• E4 Biodiversity and ecosystems: Biodiversity impacts in raw
material sourcing (upstream value chain)
• E5 Circular economy: Material use (upstream value chain),
tire end-of-life impacts (downstream value chain)
39
Report by the
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Financial
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Report
Corporate Governance
Statement
Year 2024 Sustainability
Statement
• S2 Workers in the value chain: Prevention and mitigation of
adverse human rights impacts in the value chain (upstream value
chain)
• S4 Consumers and end users: Contribution to road and end user
safety, increasing end user awareness, privacy (downstream value
chain)
• G1 Business Conduct: Ethical and sustainable sourcing practices,
advancing and lobbying for legislation that is beneficial for end
users and/or the environment, preferred partner for suppliers
through good and fair relationship management.
Nokian Tyres has used the option to omit sensitive information
related to details of manufacturing partners and to the datapoints 31
a and 31 c in the disclosure requirement E5-4.
BP-2 Disclosures in relation to specific
circumstances
Time horizons
Reporting does not deviate from the medium- or long-term time
horizons defined by ESRS 1 section 6.4.
Value chain estimation
In the calculation of Scope 3 emissions data, several estimations are
used, including, for example, the use of general emissions factors
and averages. This affects the accuracy of calculations. The calcula-
tion principles are based on Nokian Tyres GHG inventory, and they are
presented in more detail under the disclosure requirement E1-6.
To improve data quality, Nokian Tyres aims to get emissions data
from an increasing number of raw material suppliers and transport
companies each year, allowing this data to be used in calculations
instead of general emissions factors.
Sources of estimation and outcome uncertainty
All sources of estimation that are subject to a high level of measure-
ment uncertainty are related to the value chain.
Changes in preparation or presentation of
sustainability information
This is the first year Nokian Tyres reports sustainability matters
according to the ESRS requirements.
Disclosures stemming from other legislation or
sustainability reporting pronouncements
The Statement also includes additional disclosures on sustainability.
The information is provided in accordance with the GRI standard, ESG
rating requirements from S&P Global, and with the requirements of
local legislation. This supplemental information is indicated visually
with a round plus mark and the text “additional, non-material infor-
mation”. Some of the information is related to the material topics
and thus placed among the topical ESRS disclosures. Information
related to non-material topics is presented in the separate section
“Additional sustainability disclosures”.
40
Report by the
Board of Directors
Financial
Statements
Remuneration
Report
Corporate Governance
Statement
Year 2024 Sustainability
Statement
GOV-1 Sustainability governance
at Nokian Tyres
The Board of Directors is responsible for the overall management of
the company and the organization of its operations. The President
and CEO, appointed by the Board of Directors, is responsible for
day-to-day management of the company in accordance with the
instructions of the Board of Directors.
In 2024, there were nine non-executive members in the Board of
Directors. The President and CEO was an executive director. There
was no employee representation on the Board of Directors.
The members of the Board of Directors have relevant experience in
the following: tire industry, CEO experience, international experience
especially in the Nordic, Central European and North American
markets, financing, corporate risk management, and corporate
governance.
At the end of 2024, the Board of Directors had six male (66.7%) and
three female members (33.3%) and three different nationalities. The
age range was between 48–67 years. The President and CEO was
male and Finnish. The new President and CEO started in January
2025, and he is male and Italian.
At the end of 2024, the members of the Board of Directors and the
President and CEO showed diversity in the following aspects:
Diversity factor Details
Age Under 30 years old: 0%
30–50 years old: 10%
Over 50 years old: 90%
Gender Female: 30%
Male: 70%
Nationality Finnish: 70%
German: 20%
American: 10%
Expertise Expertise in the tire industry: 20%
CEO experience: 90%
Leadership experience: 100%
Education M.Sc. in Economics: 60%
MBA: 20%
M.Sc. in Technology: 10%
Dipl. Ing. in Physics: 10%
M.Sc. in Engineering Management: 10%
M.Sc. in Social Sciences: 10%
All members of the Board of Directors were independent of the
company and of all major shareholders in the company, with the
exception of Reima Rytsölä, who was deemed not to be independent
of a significant shareholder of the company based on his position
as the CEO of Solidium Oy (ownership in the company at year end
10.10%). The percentage of independent members of the Board of
Directors was thus 89.
The Board of Directors is the entire group’s highest body overseeing
sustainability, including the impacts, risks and opportunities. The
Board of Directors approves the key sustainability targets as well
as the group’s policies guiding the group’s operations and internal
control. The Board of Directors’ People and Sustainability Committee
(PSC), among other things, prepares sustainability topics for the
Board of Directors and monitors developments in the operating
environment and regulation relating to sustainability.
41
Report by the
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Financial
Statements
Remuneration
Report
Corporate Governance
Statement
Year 2024 Sustainability
Statement
All members of the PSC are independent of the company and of all
major shareholders of the company. The PSC has no independent
decision-making power; collective decisions are made by the Board
of Directors.
Nokian Tyres’ sustainability work is led by the Senior Vice Presi-
dent, Operation Excellence, who is a member of the Management
Team. The Sustainability Steering Group supervises and monitors
the sustainability work within the group and comprises of senior
representatives from Operation Excellence, Products & Innovations,
Legal, Finance, Human Resources, and Communications functions.
The Greenhouse Gas (GHG) Steering Group supervises and monitors
the progress in reducing greenhouse gas emissions within the
group. The duties of all supervisors include day-to-day leadership of
sustainability.
Sustainability matters are reported to the Board of Directors’ People
and Sustainability Committee. The PSC, among others, regularly
reviews with the management the progress of the company’s
sustainability program and monitors sustainability reporting
process. The skills, competencies, and experience of the members
of the Board of Directors in leadership, strategy development and
execution, governance, risk management, remuneration, communi-
cations and stakeholder relations are relevant in ensuring that the
company systematically and successfully develops and executes
its sustainability program. The Board of Directors' committee
work makes it possible to deepen sustainability expertise. Internal
and external sustainability professionals can be asked to speak at
committee meetings, and topic-specific presentations and trainings
are organized as needed, including on material topics.
Strategy, targets, and follow-up
Managing sustainability at Nokian Tyres
Board of Directors (incl. People and Sustainability Committee)
Group’s Management Team
VP, Quality and Sustainability
All units and supervisors
Personnel
Action plans and day-to-day leadership of sustainability
Sustainability Steering Group GHG Steering Group
Sustainability
working group
Safety
management
working group
Environmental
working group
Energy
efficiency
working group
Sustainable
purchasing
working group
42
Report by the
Board of Directors
Financial
Statements
Remuneration
Report
Corporate Governance
Statement
Year 2024 Sustainability
Statement
As for business conduct, the Board of Directors is responsible for
Nokian Tyres’ corporate governance and the organization of its oper-
ations pursuant to the Finnish Limited Liability Companies Act and
other regulations. The Board of Directors holds the general authority
to lead and represent the company unless the matter belongs to the
General Meeting of the shareholders pursuant to the applicable law
or the Articles of Association. The policies and key tasks of the Board
of Directors are defined in the Finnish Limited Liability Companies
Act, the Articles of Association, and the Board of Director’s Charter.
The President and CEO conducts the group’s business and manages
the company’s operations in accordance with the Finnish Limited
Liability Companies Act and the instructions and guidelines provided
by the Board of Directors. The President and CEO is responsible
for informing the Board of Directors regarding the development of
the company’s business and financial situation, and for preparing
the company’s strategy and objectives for the approval of the
Board of Directors. The President and CEO is also responsible for
implementing the approved strategy and plans, ensuring the legal
compliance of the company’s bookkeeping and arranging reliable
asset management.
The Board of Directors and the President and CEO have knowledge
in areas such as strategic leadership, consumer goods industry,
corporate governance, risk management, and operational efficiency,
which are crucial for effective business conduct at Nokian Tyres.
GOV-2 Addressing sustainability matters
The Vice President, Quality and Sustainability reports sustainability
matters to the People and Sustainability Committee at least three
times a year or as needed.
The results of the double materiality analysis and the material
impacts, risks, and opportunities were presented to the Board of
Directors in February 2024 and discussed. Additionally, Nokian Tyres’
updated short- and long-term science-based greenhouse gas emis-
sions reduction targets were confirmed by the Board of Directors
in 2024. To maintain regular information flow, sustainability topics
are included in the agenda of People and Sustainability Committee
meetings. The topics are chosen based on their relevance and
importance.
Consideration of impacts, risks, and opportunities is also embedded
in the Enterprise Risk Management (ERM) Policy, which is binding for
all group companies, Business Areas (BAs), Business Units (BUs), and
functions at all organization levels. The ERM aims to minimize the
adverse impacts of strategic, operational, and financial risks, remove
or mitigate hazard risks, and take advantage of opportunities. The
ERM is part of the general management and internal control system.
Assistance
Advice
Board of Directors
Internal
Auditor
Management
Team
Strategy Work/
New Business Cases/
Investments
Audit Committee,
People and Sustainability Committee,
Investment Committee
Treasury & Risk
Management
Business Units FunctionsBusiness Areas
Controllers
Employees
Risk Assessment
Business Risks
Identify
Assess
Control
Monitor
Identify
Assess
Control
Monitor
Risk Assessment
Key Risks
Group Risk
Assessment
Insurance Broker
Law Firms
Other Advisors
Banks
Tax Advisors
Risk assessment and reporting
Consolidated Risks
Three Lines of Defense
First line: Business Areas/Units and Functions
Second line: Treasury and Risk Management
Third line: Internal Auditor
43
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Financial
Statements
Remuneration
Report
Corporate Governance
Statement
Year 2024 Sustainability
Statement
The Treasury and Risk Management in the Finance organization con-
ducts regular group enterprise risk analyses together with Business
Areas, Business Units, and functions. The analyses are presented to
the Management Team at least once a year. Risks that may impact
the achievement of the group’s strategy and business objectives
are identified, assessed, and prioritized by severity in the context
of risk appetite. Based on chosen risk appetite and tolerance level,
risk is accepted, avoided, reduced, or transferred. The results of this
process are reported to the Audit Committee and, when the nature
of the risk requires, also to the People and Sustainability Committee
or the Investment Committee, and then to the Board of Directors.
The Board of Directors discusses the most significant risks, risk
appetite and related measures in connection with the strategy
process and decisions related to business objectives and major
investments.
In 2024, the annual risk review was integrated into the strategy work
presented to the Board of Directors. As the most relevant risks were
presented on a high level across all company operations, the detailed
material risks and opportunities were not specifically addressed.
However, risks related to ESG, R&D, and the own workforce were
analyzed during the strategy work among the most significant risks,
and mitigation measures were identified.
The results of the analysis included also a strong commitment to
achieving Nokian Tyres’ sustainability goals. Achieving the goals
requires active mitigation of many of the company’s impacts, such
as greenhouse gas emissions, use of virgin resources, and adverse
human rights impacts in the supply chain.
GOV-3 Integrating sustainability-related
performance in incentive schemes
Nokian Tyres’ Total Rewards Philosophy and Guideline was created
by the Management Team and approved by the Board of Directors in
2018. The document was updated in 2024. It forms the basis for the
rewarding principles in the company. The executive remuneration
is designed to advance strategy execution, business objectives,
sustainability, and long-term profitability of the company.
Nokian Tyres Remuneration Policy describes the remuneration of
the Board of Directors and the President and CEO, and the principles
of determining the policy and implementation of the policy. The
Remuneration Policy was presented in and adopted by the Annual
General Meeting 2024. The Board of Directors oversees the com-
pany’s remuneration, including the sustainability-related rewards,
by following the company’s progress in meeting the targets in the
People and Sustainability Committee meetings and by approving the
President and CEO remuneration.
A significant aspect of the Remuneration Policy is to link sustain-
ability-related performance measurements into incentive schemes.
This ensures that the management’s remuneration is linked to the
achievement of sustainability goals, thereby aligning the manage-
ment's interests with the company and its stakeholders.
Nokian Tyres has several incentive plans in use to measure perfor-
mance in both the short and long term. The company has two share
plans that are intended to align the objectives of the Nokian Tyres’
shareholders and key employees for increasing the value of the com-
pany in the long term, to retain the key employees at the company,
and to offer them a competitive incentive scheme that is based on
earning and accumulating shares.
The share-based incentive plans typically have performance periods
of a minimum of three years. The Board of Directors decides on the
terms and conditions of the plans and on the performance criteria
and related objectives separately for each performance period.
The achievement of performance criteria is evaluated after each
performance period and the amount of the reward is determined
based on the extent to which the goals have been reached during the
performance period. The criteria for the performance period are based
on strategic, financial, production, and sustainability-related goals.
The current performance criteria in the company’s main long-term
incentive plan, the Nokian Tyres Performance Share Plan, are
cumulative EBITDA, increase in passenger car tire production volume,
and reduction of Scope 1 and 2 carbon dioxide equivalent (CO
2
e)
emissions. The CO
2
e sustainability target carries 10 percent weight of
the total of 100 percent target setting within long-term incentives.
Nokian Tyres’ Restricted Share Plan serves as a complementary long-
term incentive tool, used for the retention of Nokian Tyres President
and CEO, the Management Team, and other selected key employees.
GOV-4 Statement on due diligence
Core elements of due
diligence
Location in the Sustainability
Statement
a) Embedding due diligence
in governance, strategy
and business model
Workers in the value chain:
Driving sustainable business in
the supply chain
b) Engaging with affected
stakeholders in all key
steps of the
due diligence
General disclosures: Hearing
the interests and views
of stakeholders, Table
Stakeholder engagement:
Suppliers, business partners,
and subcontractors
c) Identifying and assessing
adverse impacts
Workers in the value chain:
Audits help identify the topics
to be improved
d) Taking actions to
address those adverse
impacts
Workers in the value chain:
Audits help identify the topics
to be improved
e) Tracking the
effectiveness of these
efforts and
communicating
Workers in the value chain:
Audits help identify the topics
to be improved
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GOV-5 Risk management and internal controls
over sustainability reporting
Nokian Tyres’ Enterprise Risk Management Policy provides a
structured framework for managing risks related to sustainability
reporting. Risk assessment is a continuous process of identifying,
assessing, controlling, and monitoring. A risk assessment is needed
to identify and prioritize risks for internal controls.
To ensure that Nokian Tyres’ risk management and internal control
framework is effective for sustainability reporting, the evaluation
of the processes for all material areas of sustainability reporting
is ongoing, including the reassessment of existing controls and
identification of additional controls within the processes.
The risks identified in sustainability reporting include accuracy
of data inputs, manual processing of data, and person risk. While
preparing for the CSRD-aligned reporting, control environment
improvements were implemented. Identification of additional
controls and further risk mitigation actions are ongoing.
The existing internal controls related to sustainability reporting are
dependent on the area of reporting and they include quantitative
and qualitative data reviews by data owning functions, the Vice
President, Quality and Sustainability, Sustainability Steering Group,
and the People and Sustainability Committee.
SBM-1 Sustainability is integrated into
Nokian Tyres’ strategy
Nokian Tyres’ product portfolio includes winter, summer, all-weather,
and all-season tires for passenger cars as well as special tires, wheels
and retreading materials for heavy-duty machinery, trucks and buses.
The Vianor chain provides tire and car services.
In 2024, Nokian Tyres’ products were sold in 46 countries. Nokian
Tyres’ key markets are the Nordic countries, where the company is
the market leader in premium passenger car tires, and North America
and Central Europe, where the company seeks growth. Nokian Tyres’
direct customers are business customers, the most significant of
which are tire dealers, car dealerships, and vehicle manufacturers.
Vianor service centers operate in Finland, Sweden, and Norway,
serving both business customers and end users.
In 2024, Nokian Tyres employed 3,810 people at the end of the year,
of which 2,722 in the Nordic countries, 618 in North America, and 470
in Central Europe.
Nokian Tyres’ sustainability-related goals regarding significant
product groups and stakeholder relationships are the following:
• Maintain the status that tires do not contain Substances of Very
High Concern
• Increase the share of renewable or recycled raw materials in tires
to 50 percent by 2030
• Have at least 60 products in the best rolling resistance A class by
2028
• Maintain the status that 100 percent of premium tires of the
selected scope are in the best wet grip A or B class in the EU Tyre
Labelling and that all of the Nokian Tyres Hakkapeliitta products
meet the EU ice grip requirements
• Decrease lost-time incident frequency (LTIF) from 8.3 (2018) to 1.5
by 2025
• Develop personnel well-being
• Maintain the status that 100 percent of sustainability high-risk
suppliers have been audited
• Maintain the status that 100 percent of natural rubber processor
suppliers are either GPSNR members or have signed Nokian Tyres'
sustainability commitment.
In 2024, Nokian Tyres’ tires did not contain Substances of Very High
Concern. In line with the 2030 goal related to renewable and recycled
raw materials, an ISCC PLUS certified raw material and a new renew-
able raw material were taken into use in production of passenger
car tires in the Finnish factory. There were 10 products in the rolling
resistance A class at the end of the year. 100 percent of premium
tires of the selected scope were in the best wet grip A or B class in
the EU Tyre Labelling, and all Nokian Tyres Hakkapeliitta products
met the EU ice grip requirements. The LTIF improved to 4.6 (4.7). 100
percent of sustainability high-risk suppliers have been audited, and
100 percent of natural rubber processor suppliers are either GPSNR
members or have signed Nokian Tyres' sustainability commitment.
Nokian Tyres’ financial target is to achieve net sales of two billion
euros with strong profits. The business units have different roles:
Passenger Car Tyres unit creates growth and profitability with a
strong brand, selective distribution, and market-specific products,
Heavy Tyres aims to continue with strong growth with widening prod-
uct portfolio, and Vianor supports sales and premium brand position
in the Nordic countries. To achieve the target, the investment phase
that continues until the end of 2025 includes expanding factories’
capacity in Finland and in the US, building a new factory in Romania,
and utilizing manufacturing partners that supplement the company’s
own production. The growth phase 2026–2027 concentrates on
stregthening the brand position further and so increasing market
penetration with new products, increased capacity, and enhanced
operational capabilities.
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The cornerstones of Nokian Tyres’ strategy are 1) the safest tires for
all conditions, 2) responsive and effective supply chain, 3) premium
Nokian Tyres brand, 4) leader in sustainability, and 5) Nokian Tyres
team. Especially 1, 4, and 5 are related to and/or impacted by sustain-
ability matters and reflect the company’s ambition to continuously
develop sustainability and show leadership.
During 2024, a critical project was the building and preparing for
the ramp-up of the new factory in Romania, and during 2025, it is
crucial to ensure successful commercial production there. Besides
increasing production capacity, the Romanian factory sets an
industry benchmark by being the first full-scale zero CO
2
e emission
tire factory in the world. More information about what zero CO
2
e
emissions mean at the factory in Romania can be found under E1-1.
In 2024, the annual risk review was integrated into the strategy
work presented to the Board of Directors. Risks related to ESG,
R&D, and own workforce were analyzed in strategy work among the
most significant risks and mitigation measures were identified. The
importance of the following was noted:
• following global and local legislation and regulations very closely
and proactively
• strong commitment to achieving sustainability goals
• sustainability, environmental, human rights and quality audits
• ability to create high quality, leading innovation products that
meet customer demand
• competent and committed personnel.
The Board of Directors discusses the most significant risks, risk
appetite and related measures in connection with the strategy
process and decisions related to business objectives and major
investments.
Nokian Tyres’ business model and value chain
Nokian Tyres operates with a focus on the consumer car and vehicle
tire replacement market, particularly excelling in the premium winter
tire segment. Nokian Tyres’ business is divided into three units:
Passenger Car Tyres, Heavy Tyres, and Vianor.
• The Passenger Car Tyres business unit develops, manufactures
and sells high-quality winter, summer and all-season tires for
passenger cars, SUVs, and vans. The unit operates within the
premium tire segment and focuses on the replacement tire
market, generating more than half of Nokian Tyres’ total net
sales. The Passenger Car Tyres business unit comprises three
business areas: Nordics, Central Europe, and North America. This
allows tailoring their business plans to meet different market
needs and conditions. Nokian Tyres’ factories are located in
Nokia, Finland, Dayton, US, and Oradea, Romania. Manufacturing
partners complement own production. Nokian Tyres has chosen
only established manufacturing partners with good reputation in
the market, and the companies have been assessed according to
the KYC process. Because some of them operate in areas where
there can be sustainability risks, also environmental and social
responsibility audits have been conducted.
• The Heavy Tyres business unit develops and manufactures special
tires for trucks and heavy machinery, focusing on niche product
segments. The core products include forestry tires, tires for
ports and terminals, mining, agriculture, trucks and buses, and
other heavy uses, such as earthmoving and road maintenance.
Manufacturing of heavy industrial tires takes place in Nokia,
Finland, while wheels for heavy machinery are produced in
Nastola, Finland. Additionally, truck and bus tires are produced by
manufacturing partners.
• Vianor is the largest car maintenance and tire services chain in
the Nordic countries with a wide network of service centers and
online stores. The target is to support sales and premium brand
position in the Nordic countries by ensuring the sales of Nokian
Tyres’ products through strong distribution and excellent service,
while also delivering positive results as a standalone unit.
Nokian Tyres places a strong emphasis on innovation, particularly in
developing products for demanding conditions. The Products and
Innovations function is dedicated to maintaining a competitive prod-
uct offering and ensuring product profitability. The company aims
to be highly customer-oriented, focusing on profitable growth and
efficient global operations. Pricing power is increased by a strong
brand, product reputation, and efficient distribution.
Nokian Tyres integrates sustainability deeply into the business
model. The company shows leadership in reducing greenhouse gas
emissions in the tire industry and aims to manage the environmental
impacts of the products throughout their entire life cycle, from raw
material sourcing to end-of-life recycling. There is a strong focus
on increasing the share of recycled and renewable raw materials.
Social responsibility is also deeply embedded in the company culture,
promoting principles of fairness and respect for human rights in all
operations, including responsible sourcing and labor rights. Employee
well-being is based on safety, leadership, and modern company
culture.
The following graph provides an overview of the main features of
Nokian Tyres’ upstream and downstream value chain and the com-
pany’s position in it. It includes a brief description of main inputs, key
business relationships including suppliers and customers, distribution
channels, and end users.
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Upstream
Operations Downstream
Suppliers
The main raw material groups in
tire manufacturing are synthetic
rubber, fillers, chemicals, reinfor-
cing materials, and natural rubber.
Nokian Tyres uses more than 200
different raw material suppliers.
Manufacturing partners comple-
ment Nokian Tyres’ own production.
Vianor imports tires and purcha-
ses goods for tire and car service.
Nokian Tyres requires that all sus-
tainability critical suppliers adhere
to the Supplier Code of Conduct,
and supplier sustainability audits
have been conducted since 2016.
Subcontractors
Nokian Tyres and Vianor
work with several subcont-
ractors in various fields, such
as construction, security,
cleaning, and logistics. All
new subcontractors offering
their services are expected
to commit to the Supplier
Code of Conduct.
Recycling
End-of-life tires can be shredded or
granulated to be utilized in various
applications. Bus and truck tires
can be retreaded two to four times.
Used tires can also be combusted
for energy. Nokian Tyres uses some
recycled materials in the products,
such as recycled steel and carbon
black.
Society
Nokian Tyres’ impact is directly
seen in the factory locations as a
locally significant job creator and a
permanent part of the surrounding
community. The purchases, sala-
ries, and taxes as well as the divi-
dends to shareholders contribute
to well-being throughout the
world.
Distribution
Nokian Tyres’ products are sold
to end users via Vianor and Vianor
Partner chains, car dealerships
and tire stores. Due to the exten-
sive distribution network, Nokian
Tyres’ products are sold in 46
countries. Nokian Tyres’ high-
quality products and services
enable the company’s customers
to reach their own targets related
to, for example, sales and custo-
mer satisfaction.
Nokian Tyres’ value chain
Transportation of raw materials
Most of the raw materials for tires
are transported by sea to large
ports in Europe from where they
are shipped to Finland and the US.
Group functions
Nokian Tyres Group employs more than 3,800
people. Nokian Tyres produces passenger car,
van and heavy tires in Finland, and passenger
car and light truck tires in the US. The new
factory in Romania produces passenger car
tires. In addition, there are sales companies
in the key markets. Two test centers are
located in Finland and one in Spain. Vianor
offers tire and car services and also operates
five retreading plants in Finland, Sweden and
Norway.
Logistics
From the logistics centers,
the tires are transported to
warehouses by land and sea.
Consumers and end users
Consumers and end users are people who drive or ope-
rate vehicles that have Nokian Tyres’ tires. They can be,
for example, passenger car drivers, people working for
transport companies driving trucks, buses or vans, or
people working in forestry or agriculture. Vianor offers
tire and car services for both consumers and business
customers. Nokian Tyres develops high-quality products
that offer safe driving kilometers. Sustainability is consi-
dered all the way from raw material procurement to end-
of-life. Approximately 90 percent of a Nokian Tyres tire’s
carbon footprint is generated during its use.
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SBM-2 Hearing the interests and
views of stakeholders
Nokian Tyres is committed to minimizing its negative impacts and
maximizing its positive impacts on the economy, environment, and
people. An essential part of driving this positive change is under-
standing how Nokian Tyres’ stakeholders view sustainability and
which sustainability topics are relevant for society and the company’s
business. This is done by engaging stakeholders when conducting
double materiality assessments every three years. The feedback
from stakeholders is taken into account in operational development
and decision-making.
In addition to the materiality assessments, engagement occurs as
presented in the following table by key stakeholder group. The table
also presents the purpose of engagement, topics that different
stakeholder groups prioritized in the most recent materiality assess-
ment, and how those views have been or are considered in Nokian
Tyres’ operations, business model, and strategy.
Key stakeholder groups and stakeholder engagement at Nokian Tyres
Stakeholder group Stakeholder engagement
Purpose of the
engagement
Stakeholder expectations in the order
of importance, based on the responses
in double materiality assessment
Connection to Nokian Tyres' operations, business model,
and strategy
Employees
White and blue collars
located in the Nordics,
North America, and
Central Europe
• Actions to provide meaningful and
motivating job content and working
conditions
• Engagement survey Drive!
• Systems through which employees are
encouraged to record safety observations
and environmental observations
• Cooperation with employee representatives
• Regular info sessions
• People review discussions
• Materiality assessments
• Dialog about safety and health at work
• Whistleblowing channel
• Hearing employees'
perceptions, ideas,
feedback, and
experiences
• Keeping employees
up-to-date on topical
matters and planned
developments
• Contributing to a
safe, sustainable and
motivating workplace and
working life
• Tire safety and quality
• Safety of employees
• Tire design, choice of materials, or
other innovations aimed at reducing
greenhouse gas emissions from tire
use
• Reduction and elimination of harmful
chemicals
• Greenhouse gas emissions reductions
in company’s own operations
• Developing new, safe, state-of-the-art products
• Externally certified safety management system
• Promoting the well-being of the personnel by providing a
safe working environment that motivates them
• Increasing the share of recycled and renewable raw
materials
• Developing tires with low rolling resistance
• Nokian Tyres’ products do not contain Substances of Very
High Concern as defined in the EU REACH regulation
• Reducing greenhouse gas emissions according to Nokian
Tyres’ science-based targets
Customers (B2B)
E.g. tire dealers and
car dealerships in
the Nordics, North
America, and Central
Europe
• Day-to-day business cooperation
• Customer experience surveys
• Materiality assessments
• Whistleblowing channel
• Building trust and strong
partnerships
• Enabling customers to
achieve their targets
• Gaining insight about
the perspectives of
consumers and end users
of tires
• Tire safety and quality
• Safety of employees
• Tire design, choice of materials, or
other innovations aimed at reducing
greenhouse gas emissions from tire
use
• Ethical and responsible company
culture
• Respect for human rights in the supply
chain
• Developing new, safe, state-of-the-art products
• Externally certified safety management system
• Increasing the share of recycled and renewable raw
materials
• Developing tires with low rolling resistance
• Conducting business in a reliable and sustainable way
• Conducting sustainability audits to natural rubber
processing plants since 2016, and auditing manufacturing
partners
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Stakeholder group Stakeholder engagement
Purpose of the
engagement
Stakeholder expectations in the order
of importance, based on the responses
in double materiality assessment
Connection to Nokian Tyres' operations, business model,
and strategy
Suppliers, business
partners, and
subcontractors
E.g. raw material
providers and partners
of the communications,
IT, R&D, HR, and other
functions
• Day-to-day business cooperation
• Supplier due diligence
• Supplier assessments and audits and
possible follow-up actions
• Subcontractor cooperation on occupational
safety
• Materiality assessments
• Whistleblowing channel
• Promoting responsible
sourcing
• Compliance with Nokian
Tyres Supplier Code of
Conduct
• Protecting human and
labor rights of workers
• Gaining insight of
upcoming developments
and trends
• Tire safety and quality
• Reduction and elimination of harmful
chemicals
• Safety of employees
• Collaborative relationships with
suppliers
• Measures to prevent corruption,
bribery and misconduct
• Developing new, safe, state-of-the-art products
• Nokian Tyres’ products do not contain Substances of Very
High Concern
• Externally certified safety management system
• Occupational safety trainings for subcontractors and
offering them the possibility to record safety observations
in Nokian Tyres' system
• Conducting business in a reliable and sustainable way
• As a tire manufacturer, Nokian Tyres purchases significant
amounts of natural rubber. The people getting their
livelihood from natural rubber are recognized as a risk
group regarding material negative human rights related
impacts. Preventing and mitigating the impacts and
promoting and ensuring decent working conditions is an
essential aspect of Nokian Tyres' business conduct.
Investors, owners,
Board members
E.g. potential or
existing shareholders
(domestic or
international), and
Board members
• Investor meetings, events, and seminars
• Stock exchange releases and other
publications
• Board meetings
• Materiality assessments
• Whistleblowing channel
• Understanding
expectations
• Providing material
information
• Attracting responsible
investors
• Enhancing transparency
• Tire safety and quality
• Tire design, choice of materials, or
other innovations aimed at reducing
greenhouse gas emissions from tire
use
• Safety of employees
• Minimization of tire and road wear
particles
• Greenhouse gas emissions reductions
in company’s own operations
• Developing new, safe, state-of-the-art products
• Increasing the share of recycled and renewable raw
materials
• Developing tires with low rolling resistance
• Externally certified safety management system
• Promoting the well-being of the personnel by providing a
safe working environment that motivates them
• Reducing greenhouse gas emissions according to Nokian
Tyres’ science-based targets
Authorities, media,
NGOs, industry
associations
E.g. public authorities,
media representatives,
NGOs related to
sustainability and
environmental
responsibility, and
industry associations
• Project cooperation
• Joint initiatives and programs
• Meetings, events and seminars
• Press releases and other publications,
responding to media inquiries
• Answering public consultations
• Materiality assessments
• Whistleblowing channel
• Knowledge sharing
• Ensuring regulatory
compliance
• Contributing to initiatives
• Contribution to
developing industry
standards
• Driving sustainable
development
• Greenhouse gas emissions reductions
in company’s own operations
• Tire design, choice of materials, or
other innovations aimed at reducing
greenhouse gas emissions from tire use
• Traceability and transparency of raw
materials
• Waste minimization and management
• Protection of biodiversity in the supply
chain
• Reducing greenhouse gas emissions according to Nokian
Tyres’ science-based targets
• Increasing the share of recycled and renewable raw
materials
• Developing tires with low rolling resistance
• Exclusively purchasing rubber processed in the plants that
Nokian Tyres has approved
• In 2022, 2023, and 2024, 100 percent of the tire production
waste was utilized
• Preparing for the EUDR
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The prioritization of sustainability topics in different stakeholder
groups was presented to the Management Team and to the Board of
Directors in February 2024 together with the results of the double
materiality analysis.
Creating safe tires for all conditions is an essential part of Nokian
Tyres’ business model, and Nokian Tyres’ products are developed
to help both drivers and other people using the roads stay safe
in traffic. From the perspectives of consumers and end users,
collecting information about their views is part of the process when
developing a new passenger car tire. For heavy tires, the insight is
gained through customer surveys. Consumers and end users can also
contact the company and leave product feedback through the web-
sites. Additionally, they can participate in materiality assessments
through public links shared on the company’s social media channels.
Furthermore, the tire and car service chain Vianor and Nokian Tyres’
customers sell Nokian Tyres’ products to consumers and end users
and have insight into their views.
SBM-3 Material sustainability-related impacts,
risks and opportunities
Nokian Tyres’ material impacts, risks, and opportunities are
presented in the following tables, including the effects of the
material impacts on people or the environment, reasonably expected
time horizons of impacts that are not actual, and the connection
to the company’s strategy, business model, activities and business
relationships.
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E1 Climate change
Material impacts, risks,
and opportunities Type Description
Effects on business model, strategy, value chain and decision making, and
related actions
Greenhouse gas
emissions from own
operations (Scope 1 and 2)
Actual negative
impact
(Own operations)
Nokian Tyres’ Scope 1 and 2 emissions are mainly generated through energy
use in the factories and account for less than one percent of the total GHG
emissions associated with the company’s activities.
Nokian Tyres aims to be the industry leader in reducing factory emissions. The
company reduces greenhouse gas emissions according to its science-based
targets and is committed to achieving net-zero emissions by 2050. The new
factory in Romania is the first zero CO
2
e emission factory in the tire industry
and supports the company's strategy by increasing production capacity. More
information about what zero CO
2
e emissions mean at the factory in Romania can
be found under E1-1.
Greenhouse gas
emissions in the value
chain (Scope 3)
Actual negative
impact
(Upstream and
downstream value
chain)
The majority of Nokian Tyres’ total GHG emissions are Scope 3 emissions that
are indirectly affected by the company and occur in the value chain. These
include, for example, emissions from tire use, purchased goods and services,
capital goods and upstream transportation and distribution.
Nokian Tyres is committed to reducing greenhouse gas emissions from the
value chain. The company will increasingly use greenhouse gas emission levels
as one supplier selection criterion.
Increasing costs related
to tire raw materials
Transition risk
(Upstream value
chain)
Tire material costs may increase due to replacing fossil-based raw materials
with more expensive renewable and recycled materials.
One of Nokian Tyres' sustainability goals is to increase the share of recycled
and renewable raw materials in tires to 50 percent by 2030. The company
aims to optimize the combination of sustainable material use and the related
additional costs.
Further environmental
fees
Transition risk
(Upstream and
downstream value
chain)
New environmental fees, such as additional taxes and certification costs,
may cause new expenses. For example EU’s CBAM for fossil raw materials and
carbon taxes.
Possible effects on sourcing decisions.
Increased revenue and/
or cost savings due
to climate-friendly
technologies
Opportunity
(Own operations)
Energy-efficient production enabled by modern machinery used in Nokian
Tyres’ factories, and the new zero CO
2
e emission factory in Romania are
recognized opportunities.
Continued investments on climate-friendly technologies.
Increased revenue from
competitive product
portfolio
Opportunity
(Own operations)
Nokian Tyres’ share in winter tire markets is strong. The company has
readiness to increase the share further, should the extreme weather
phenomena increase in the future.
Nokian Tyres is an expert in creating tires for demanding and challenging
weather conditions. Continued focus on strengthening winter tire knowhow.
Increased revenue from
innovations with low
carbon footprint raw
materials
Opportunity
(Own operations)
Innovative raw material use helps create sustainable, environmentally friendly
products that meet customer and consumer needs and expectations,
generating revenue.
Continued investments on innovation and research.
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E2 Pollution
Material impacts, risks,
and opportunities Type Description
Effects on business model, strategy, value chain and decision making, and
related actions
Pollution of air, water
and soil
Actual negative
impact
(Downstream value
chain and own
operations)
Tire and road wear particles (TRWP) are formed when tires are in contact with
the road. TRWP are considered as microplastics and can degrade local air
quality, water and soil, and have negative effects on both ecosystems and
human health.
Nokian Tyres is committed to continuously improving the quality, safety
and environmental friendliness of the products, services, and processes.
Improved tire properties and innovative designs are ways to reduce the
amount of TRWP compared to business-as-usual practices.
Adverse health and
environmental impacts
from the use of chemicals
Actual negative
impact
(Downstream value
chain and own
operations)
Negative environmental impacts can take place in the value chain due to
chemicals in tire materials. Chemical use in own operations could harm the
people working in production and warehouses.
Nokian Tyres’ tires do not contain any Substances of Very High Concern,
and the company works to avoid the use of harmful substances, thereby
minimizing risks to occupational health in production and warehousing.
Ensuring chemical and environmental safety in all operations is part of
the continuous sustainability work. The company actively screens for
environmentally sustainable raw materials and development cooperation
with suppliers, and, as needed, makes decisions on new raw materials in order
to further develop the environmental sustainability of products.
Increasing regulatory
obligations related to
pollution
Risk
(Own operations)
The risk of increasing regulatory obligations related to pollution can lead to
increased costs of materials and product development. There's also a risk of
penalties and litigation from the use of banned or restricted substances.
Nokian Tyres conducts its business in line with all applicable laws and
regulations and proactively anticipates future requirements.
Development of more
environmentally
sustainable products
(more durable products
and safer chemicals)
Opportunity
(Own operations)
Innovation in tire design and materials could give Nokian Tyres an
advantageous position in introducing more durable products that result in
decreased generation of TRWP.
Nokian Tyres actively screens for environmentally sustainable raw materials
and development cooperation with suppliers. The company continues
investments on innovation and research, and, as needed, makes decisions
on new raw materials in order to further develop the environmental
sustainability of products.
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E4 Biodiversity and ecosystems
Material impacts, risks,
and opportunities Type Description
Effects on business model, strategy, value chain and decision making, and
related actions
Biodiversity impacts in
raw material sourcing
Actual negative
impact
(Upstream value
chain)
Nokian Tyres’ biggest biodiversity impacts are indirect, taking place in the
beginning of the value chain as they are mainly caused by the cultivation of
natural rubber. Natural rubber is one of the main ingredients of tires, and thus
sustainable sourcing of raw materials is necessary with the aim of reducing
the negative biodiversity impacts, e.g., land use change, deforestation, and
effects on species.
As a member of the Global Platform for Sustainable Natural Rubber (GPSNR)
Nokian Tyres is committed to a shared responsibility toward improving the
social, environmental, and economic sustainability of the global natural
rubber value chain. In 2024, 100 percent of Nokian Tyres’ approved natural
rubber processors were either members of the GPSNR or committed to
develop their operations according to Nokian Tyres’ Sustainable Natural
Rubber Policy, which covers various commitments related to social and
environmental aspects, such as human rights, labor rights, and protection of
the environment and biodiversity.
Increasing regulation
related to deforestation
and other biodiversity-
related issues
Risk
(Upstream value
chain and own
operations)
For example, the EU deforestation regulation (EUDR) concerning natural
rubber obliges companies to ensure that products sold in the EU have not
led to deforestation and forest degradation, and there are penalties for non-
compliance. Such regulation can increase the costs of raw materials and/or
the administrative costs of sourcing and distribution.
Nokian Tyres conducts its business in line with all applicable laws and
regulations. During 2024, the company prepared for the EUDR.
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E5 Resource use and circular economy
Material impacts, risks,
and opportunities Type Description
Effects on business model, strategy, value chain and decision making,
and related actions
Use of virgin resources Actual negative
impact
(Upstream value
chain)
Various raw materials are needed for tire production. Still today the majority
of raw materials in the tire industry are fossil-based or from other non-
renewable sources.
Nokian Tyres is committed to safeguarding natural resources and promoting
circular economy. The company reduces the environmental impact of
its material use through product development, by sourcing recycled and
renewable materials, and by replacing fossil raw materials. Nokian Tyres’ goal
is to increase the share of renewable and recycled raw materials in tires to 50
percent by 2030. To achieve this goal, the company is in close cooperation
with different raw material manufacturers and encourages innovations from
different stakeholders.
Negative impacts caused
by improper management
of end-of-life tires
Actual negative
impact
(Downstream value
chain)
In Finland, nearly 100 percent of tires are recycled. In all of Europe the figure
is 92 percent. In the US, the tire recycling rate of collected tires is 79 percent.
Improper management of end-of-life tires contributes to environmental
pollution and can be considered as waste of natural resources as there are
possibilities to utilize end-of-life tire materials.
Nokian Tyres promotes the recycling of end-of-life tires together with its
stakeholders, and the company can also contribute to the topic by developing
circular tire solutions. As one of the original founders of Finnish Tire Recycling
Ltd, Nokian Tyres is involved in their work of looking for new ways to recycle
and utilize tires. Retreading is one of the best recycling methods. All Nokian
Tyres’ products (tires and wheels) are recyclable.
Increasing regulation
on materials (e.g.
traceability)
Risk
(Upstream value
chain and own
operations)
The increasing regulation on e.g. ensuring the origins of raw materials can lead
to increasing costs of raw materials and sourcing.
For example, the EUDR regulation will increase operational costs, as natural
rubber is one of the main ingredients in tires. Nokian Tyres aims to create
effective processes to minimize additional costs.
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S1 Own workforce
Material impacts, risks,
and opportunities Type Description
Effects on business model, strategy, value chain and decision making,
and related actions
Positive impacts through
improved employee
health, well-being, and
motivation
Actual positive
impact
(Own operations)
To support employees' well-being and motivation, Nokian Tyres advances an
inclusive working culture and wants to empower the employees to actively
participate and collaborate, to take both ownership of their work and
responsibility for everyone’s safety. The modern working environment with
digital tools helps teams to flexibly organize their work and supports the
individual well-being of employees.
Nokian Tyres team is one of the cornerstones of the company's strategy. This
applies to all impacts, risks, and opportunities related to own workforce.
The Management Team fully supports the hybrid way of working, including
flexible working time and arrangements when possible. Employees that are
motivated and feel well generally perform on high level.
Positive impacts by
offering secure work and
fair working conditions
Actual positive
impact
(Own operations)
Employees' financial security is improved as Nokian Tyres guarantees
adequate compensation, fair terms of employment, freedom of association
etc.
Actions to support strong Nokian Tyres team.
Positive impacts from
improved skills and
career development of
employees
Actual positive
impact
(Own operations)
Enabling skills and career development leads to increased motivation and
satisfaction at work as well as benefits the company through better employee
retention and highly motivated and skilled employees.
At Nokian Tyres, each employee has the ownership of their development
and career. Manager’s role is to offer support by providing resources
and opportunities for learning, where feasible. Employees have also an
opportunity to discuss their career aspirations for the future.
Increased health, well-
being and motivation,
improved company
culture and employer
reputation through
inclusivity and equality
Potential positive
impact
(Own operations)
Nokian Tyres fosters an equal and inclusive work culture. Nokian Tyres respects human rights and treats all individuals equally.
Adverse impacts on
employee health, well-
being and motivation
Potential negative
impact
(Own operations)
There is a potential long-term negative impact that work-life imbalance and
excessive working hours can lead to e.g. employee burnout or otherwise poor
working environment for employees.
Nokian Tyres’ goal is to promote occupational health and well-being with
proactive actions. The company follows the well-being at work with group-
wide surveys and one-to-one conversations. Occupational health care is
based on local legislation and the company’s Environmental, Safety, and
Quality Guideline.
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S1 Own workforce
Material impacts, risks,
and opportunities Type Description
Effects on business model, strategy, value chain and decision making,
and related actions
Adverse impacts on
employee safety
Actual negative
impact
(Own operations)
The safety risks are mostly related to the operators' work at the factories and
to mechanics' work in tire and car service centers.
Nokian Tyres is working toward a workplace with zero accidents, and the
actions, such as safety inspections, audits, and safety observations, are
followed monthly in the Management Team meetings. The results are
analyzed in team meetings and action plans are drawn based on the findings.
Attractive employer
brand through
outstanding employee
well-being and working
environment
Opportunity
(Own operations)
Proactive measures to increase employee health and well-being, as well as
a supportive and inclusive working environment, offer an opportunity to
improve talent attraction and retention.
Employer branding actions as needed to be able to recruit competent
workforce.
Competitive advantage
and improved innovation
capabilities through
competent workforce
Opportunity
(Own operations)
Highly competent and trained employees can support securing Nokian Tyres'
business in the long-term.
Hiring talented employees and continuous upskilling of current workforce.
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S2 Workers in the value chain
Material impacts, risks,
and opportunities Type Description
Effects on business model, strategy, value chain and decision making,
and related actions
Adverse human rights
impacts related to
working conditions and
equality in the supply
chain and outsourced
operations
Actual negative
impact
(Upstream value
chain)
The adverse human rights impacts are related to natural rubber, which is one
of the main ingredients of tires and the livelihood of hundreds of thousands
of families living in countries where the local legislation and working
conditions have not been fully developed. The natural rubber supply chain is
complex and fragmented. Yet, at the same time, if natural rubber is cultivated,
produced and processed in a sustainable way, it has the potential to bring
positive social, environmental and economic impacts.
Nokian Tyres’ principles in all operations are fairness and respecting human
rights. Nokian Tyres aims to prevent and mitigate human rights violations
in its supply chain through strengthening the due diligence processes, and
the company has conducted sustainability audits of suppliers since 2016
to be able to address potential problems and drive improvements. In 2021,
Nokian Tyres published its Sustainable Natural Rubber Policy to tackle issues
associated with the natural rubber supply chain. As part of Nokian Tyres’
commitment toward a more sustainable business, the company has been a
supporting member of the United Nations Global Compact (UNGC) initiative
since 2015, and the company follows the initiative’s ten principles that cover
the areas of human rights, labor, the environment, and anti-corruption.
Nokian Tyres is further committed to acting in the manner required by the UN
Guiding Principles on Business and Human Rights.
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S4 Consumers and end users
Material impacts, risks,
and opportunities Type Description
Effects on business model, strategy, value chain and decision making,
and related actions
Improving road and end
user safety
Actual positive
impact
(Downstream value
chain)
Premium quality means premium safety: Nokian Tyres has not had a significant
recall in 23 years. As a tire manufacturer Nokian Tyres must ensure that the
tires are verifiably safe to use and that they meet the quality requirements as
well as expectations of customers and end users. In Central Europe, wet and
snow grip are crucial for winter driving safety, while in the Nordics and in the
northern parts of North America ice grip is more important.
An essential part of Nokian Tyres' strategy is to create high-quality, safe tires
for all conditions. Nokian Tyres improves the safety of the products through
continuous product development and testing. The company’s leadership and
product development are guided by the Code of Conduct, the Environmental,
Safety and Quality Guideline, and testing policies. Additionally, Nokian Tyres
complies with several requirements concerning noise, studs, chemicals,
testing, and tire markings, among other things.
Increasing end user
awareness on safety-,
environmental- and other
aspects by providing
educational content
Actual positive
impact
(Downstream value
chain)
Drivers can make a difference with their choices and actions, and many
of them are also interested in getting tips and advice on tire selection,
use, and maintenance. Nokian Tyres and Vianor communicate regularly to
educate drivers on how to maintain tires, how to take into account safety and
environment when selecting tires, and how to get the best out of them by
driving responsibly.
Nokian Tyres’ vision is to lead the world to drive smarter. This includes regular
educational communication.
Negative impacts due to
compromised customer
privacy due to inadequate
cybersecurity and privacy
Potential negative
impact
(Downstream value
chain)
Nokian Tyres aims to ensure that there are adequate cybersecurity and
privacy measures in place to prevent data breaches and misuse of customer
and consumer data.
Nokian Tyres is committed to working in accordance with the legislation
and regulations and has high respect for personal data. As for data privacy,
regulations are followed, and there are trainings and clear internal processes.
Fact-based and
innovative sustainability
communications and
marketing
Opportunity
(Own operations)
Fact-based and innovative sustainability communications and marketing
offers opportunities to improve Nokian Tyres' brand and reputation among
end users, thus generating more revenues.
Leadership in sustainability is one of the cornerstones of Nokian Tyres'
strategy, and the company communicates regularly on the topic.
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G1 Business conduct
Material impacts, risks,
and opportunities Type Description
Effects on business model, strategy, value chain and decision making,
and related actions
Ethical and sustainable
sourcing practices
Actual positive
impact
(Upstream value
chain and own
operations)
Requiring a commitment to ethical business and sustainability from suppliers
promotes both environmental and social responsibility in the supply chain.
Nokian Tyres company culture is guided by respect, openness, and
sustainability, along with high ethical values that guide decision-making on
every level of the company.
Advancing and lobbying
for legislation that is
beneficial for end users
and/or the environment
Actual positive
impact
(Downstream value
chain and own
operations)
By lobbying in a responsible and transparent manner, the company can help
shape legislation that is both effective in reducing the potential negative
impacts while not causing disproportionate costs. Nokian Tyres is not involved
in political activities, fundraising, or political contributions as per our Code of
Conduct.
Nokian Tyres' participation in the activities of industry and trade
organizations depends on the current topics and opportunities to offer
expertise. For example, Nokian Tyres' advocacy led to the addition of the
ice grip marking and snow grip marking in the EU Tyre Label to help drivers
choose safe winter tires for winter conditions. Currently the company
participates, for example, in ETRMA's tire abrasion project that aims for
reducing road transport emissions by setting global tire abrasion limits that
are based on a reliable tire test method.
Preferred partner for
suppliers through good
and fair relationship
management
Opportunity
(Upstream value
chain and own
operations)
Good and fair supplier relationship management offers an opportunity for
long term, mutually beneficial supplier relationships enabling long term
development of cooperation and efficiency improvements.
Nokian Tyres aims for strong partnerships that are mutually beneficial.
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The Group has arranged part of its external financing as sustainabili-
ty-linked funding. During 2023, Nokian Tyres issued the first sustain-
ability-linked bond under its Sustainability-Linked Bond Framework.
The framework has two KPIs, both of which are related to green-
house gas emissions intensity. The first KPI is related to Scope 1 and
2 emissions, in t CO
2
e/production ton, and the second KPI to Scope 3
emissions from product use, in t CO
2
e/production ton. Sustainalytics’
second-party evaluation considers both KPIs to be "Very strong" and
the Sustainability Performance Targets "Ambitious". The same KPIs
are also used in another credit facility arrangement. Failure to meet
these KPIs would result in additional interest expenses to
Nokian Tyres.
As three cornerstones of Nokian Tyres’ strategy (safest tires for
all conditions, leader in sustainability, and Nokian Tyres team) are
related to the company’s material topics regarding tire safety and
own workforce and stating the commitment to sustainability, it was
assessed that the company in general is well prepared to address
the material impacts and risks and to take advantage of the material
opportunities as part of its strategy execution during the strategy
period that lasts until the end of 2027. A separate qualitative analysis
on resilience is planned for year 2025.
This is the first time that Nokian Tyres reports on material impacts,
risks, and opportunities identified in a double materiality analysis
according to the European Sustainability Reporting Standards’
requirements. The previous material topics were identified through
a different process in 2021, and they were the following:
• Environmentally sustainable raw materials
• Actions to mitigate climate change
• Safety and well-being at Nokian Tyres
• Promoting human rights in all operations
• Safety properties of tires.
IRO-1 The process to identify and assess material
impacts, risks and opportunities
Nokian Tyres carried out a sustainability double materiality assess-
ment according to the European Sustainability Reporting Standards’
requirements for the first time during September 2023–February
2024. The assessment process consisted of a contextual analysis
based on public and internal sources, stakeholder survey, internal
assessment and working group meetings. The results were reviewed
and validated by Nokian Tyres’ Management Team, the Audit Com-
mittee, the People and Sustainability Committee, as well as the Board
of Directors. The process followed the principles of internal control
and risk management confirmed by Nokian Tyres’ Board of Directors.
Contextual analysis
The analysis served to give an understanding of the context and a
starting point for the materiality assessment. The aim of the analysis
was to preliminarily identify and evaluate the potentially relevant
sustainability aspects (impacts, risks, and opportunities) to the tire
industry and across Nokian Tyres’ value chain. The contextual analysis
was based on publicly available and internal materials, looking into
the larger sustainability trends in the media, an overview of relevant
regulation, sector-specific frameworks, and industry publications, as
well as a peer benchmark.
Identifying sustainability-related impacts, risks,
and opportunities
As a result of the contextual analysis, a number of actual and poten-
tial, negative and positive impacts, as well as risks and opportunities
relevant in Nokian Tyres’ own operations and through its business
relationships were identified and categorized as per the ESRS topic
division. The key features of the value chain were considered on a
general level, including the key inputs and outputs, Nokian Tyres’ own
functions, as well as the main stakeholders including suppliers and
consumers.
The identified list of material topics served as basis for the stake-
holder engagement via an online survey. Through the survey, Nokian
Tyres engaged with a wide range of stakeholder representatives to
understand their views and interests on relevant sustainability topics
for Nokian Tyres. Participants included Nokian Tyres’ employees, sup-
pliers, business partners, corporate customers, retailers, investors,
board members, authorities, media, NGOs, and industry associations.
The views of these stakeholders informed the subsequent assess-
ment of material impacts, risks, and opportunities.
Assessment and determination of material impacts,
risks, and opportunities
The materiality of the identified impacts, risks and opportunities was
assessed in accordance with the principles of the ESRS. The severity
of the negative and positive effects (considering the scale, scope
and, in the case of negative effects, also the irremediable character
of the impact), the magnitude of the financial impact of the risks and
opportunities, as well as the likelihood of their occurrence were each
assessed on a scale of 1 to 5. For the identification and assessment
of climate-related risks and opportunities, Nokian Tyres’ simultane-
ously conducted separate climate risk assessment was utilized and
integrated into the double materiality assessment process.
The result of the severity/magnitude scores and the corresponding
likelihood scores formed the total materiality scores of each
sustainability topic, by which a quantitative materiality prioritization
of the identified items was created. The double materiality scores
for the sustainability matters were determined based on both the
impact materiality scores and risk materiality scores. The median
value of all the materiality scores was employed as the initial
quantitative threshold for determining the materiality of a single
sustainability topic (impact, risk, or opportunity). After further
discussion and analysis in working group meetings and discussions
with the assurance provider, qualitative materiality adjustments were
made during 2024 for individual impacts, risks, and opportunities,
resulting in the final list of material topics.
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The double materiality assessment is revised yearly during the first
half of the year, and the next comprehensive assessment is planned
to be conducted in 2026–2027.
Topic-specific considerations
The double materiality assessment identified and evaluated impacts
related to climate change. Scope 1 and 2 emissions are material
impacts for Nokian Tyres because tire manufacturing is energy inten-
sive. In addition, raw materials, logistics, and tire use, cause material
Scope 3 emissions. Approximately 90 percent of a Nokian Tyres tire’s
carbon footprint is generated during its use.
Nokian Tyres addresses climate change related risks through a
procedure encompassing identification, evaluation, prioritization,
and action. This process was integrated into the double materiality
assessment process.
RISK PROCESS
Step 1: Mapping and identification of relevant climate-related risks
The first step involves mapping and identifying pertinent climate-re-
lated risks, which are integrated into the broader risk management
framework of the company. Risks and opportunities related to
Nokian Tyres’ operations and the entire value chain are identified
by conducting a double materiality analysis and consulting internal
stakeholders.
Step 2: Strategic evaluation at company level
As part of Nokian Tyres’ integrated risk management process, the
company further evaluates the strategic implications of climate-re-
lated risks and opportunities at the group level, including physical
and transition risks. This assessment encompasses various factors
including strategic risks, market effects, reputation risks, potential
for goodwill, and strategic opportunities.
Step 3: Determining impact
The strategic evaluation of climate-related risks is conducted in
conjunction with all other corporate risk assessments as part of the
annual enterprise risk analyses. Within these analyses, Nokian Tyres
utilizes a ranking system that considers severity, likelihood of the
risk occurring, and existing controls. Both the long-term strategic
and financial impacts on the company are assessed, and the highest
risk impacts and most beneficial opportunities are identified and
prioritized.
Extreme weather events disrupting the production and logistics
supply chain were identified as an important physical risk. However,
in the double materiality analysis it was identified as non-material.
Nokian Tyres also conducted a scenario analysis to further
investigate how different acute weather events such as flooding at
the production facility in Romania and the warehouse in Germany,
and tropical cyclones at the US locations would affect the oper-
ations in the short (<2030), medium (2030–2040), and long term
(2040–2050). In the analysis of physical risks, the SSP scenarios
SSP1-2.6 and SSP5-8.5 were used. After the analysis it was concluded
that the financial impact of a single flood is low or medium. Only if
several floods occurred at the same time, their combined financial
impact would be high in the medium and long term. Nokian Tyres
has also invested in building design and insurances to mitigate such
risks. For cyclones, the financial impact is considered low during the
short term and medium in the medium and long term. Therefore
the results of the scenario analysis are in line with the results of the
double materiality assessment.
For transition risks, climate-related regulations were identified as
most likely to affect Nokian Tyres’ operations in several ways. Policies
about deforestation may affect prices and availability of raw material
while carbon pricing may affect Nokian Tyres' operational costs
and regulatory changes may lead to having to develop the product
portfolio accordingly. Another analyzed transition risk is the replace-
ment of fossil-based raw materials with more renewable materials,
touching on price and availability.
For the transition risks, two of the International Energy Agency’s
(IEA) climate related scenarios were used; The Announced Pledges
Scenario (APS) incorporates climate commitments made by govern-
ments, including Nationally Determined Contributions (NDCs) and net
zero targets. The Net Zero Emissions by 2050 (NZE) Scenario aims to
limit global warming to 1.5 °C and assumes aggressive gains in energy
efficiency and consumer behaviour changes. The chosen scenarios
are based on the most recent scientific research and align with the
terms set out in the Paris Climate Agreement. The scenarios chosen
are relevant to look at as they present a narrative for risks to play out
in both best-case scenarios as well as worst-case scenarios. The time
horizons in the analysis were short (<2030), medium (2030–2040),
and long term (2040–2050).
Step 4: Responding to climate-related risks and opportunities
Responsibility for strategic responses to climate-related risks and
opportunities, as determined by enterprise risk management (ERM),
rests with the appropriate managers. Based on the environmental
information generated by the company's sustainability specialists,
the annual development targets (indicators and development
actions) are set with the management responsible of each function.
The management is responsible for implementing the development
and the specialists follow the development and indicators, providing
follow-up information at group level.
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OPPORTUNITY PROCESS
Similarly, climate-related opportunities are integrated into strategy
and other financial planning but are also treated by dedicated spe-
cialists in environmental and sustainability matters to reflect their
strategic importance. A similar approach is applied to climate-related
opportunities, which are part of annual strategic evaluations and
analyses. Financial impact and likelihood of an opportunity unfolding
determines the overall ranking and impact of opportunities.
OVERALL RISK MANAGEMENT PROCESS
The group’s Enterprise Risk Management Policy focuses on managing
both the risks pertaining to business and the risks affecting the
achievement of the group’s goals in the changing operating environ-
ment. The risks are classified as strategic, financial, and hazard risks.
The process outlined above for identifying, assessing, prioritizing,
and monitoring climate-related risks and opportunities falls under
the category of strategic risks. The risk management process is
presented under GOV-2.
Responsibility for identifying, evaluating and, to a large extent,
managing risks, is delegated to business units, business areas and
functions. The process for identifying and evaluating climate risk
is the task of the specialized environmental and sustainability unit.
Assisted by the People and Sustainability Committee, the company’s
Board of Directors has the overall responsibility, and it monitors
and assesses the efficiency of the company’s risk management
mechanisms. It also monitors the assessment and management of
risks related to the company’s strategy and operations. The People
and Sustainability Committee monitors that the risk management
actions are in line with the Enterprise Risk Management Policy.
The climate scenarios outlined in the risk management process are
identical to the critical climate-related assumptions, such as the
most significant risks noted in the Board of Directors' report.
The double materiality assessment identified and evaluated
relevant impacts, risks, and opportunities related to pollution.
However, the assessment did not include screenings of site locations
concerning Nokian Tyres’ own operations and upstream and down-
stream value chain.
Consultations with affected communities were completed as part
of the assessment’s stakeholder engagement. Nokian Tyres also
conducted internal environmental impact and risk assessments,
chemical operation supervisors performed site visits, and the Finnish
Safety and Chemicals Agency (TUKES) carried out inspections.
Nokian Tyres’ double materiality assessment concluded that Nokian
Tyres’ key impacts regarding pollution come from tire and road wear
particles (TRWP) and chemical use. TRWP are considered as micro-
plastics and can degrade local air quality, water and soil, and have
negative effects on both ecosystems and human health. Ensuring
chemical and environmental safety in all operations is part of the
continuous sustainability work.
The risk of increasing regulatory obligations related to pollution
can lead to increased costs of materials and product development.
There's also a risk of penalties and litigation from the use of banned
or restricted substances. However, innovation in tire design and
materials could give Nokian Tyres an advantageous position in intro-
ducing more durable products that result in decreased generation
of TRWP.
The topic Water and marine resources was assessed but not consid-
ered material. Water risk assessments for Nokian Tyres’ production
sites have been conducted using the WWF’s water risks filters, and
they are updated every three years. The assessments confirm that
Nokian Tyres’ water-related risks are minor and that the company
does not operate in water-stressed areas.
As for Nokian Tyres’ suppliers, less than three percent operate near
areas of water stress. However, Nokian Tyres includes some disclo-
sures on water in the Sustainability Statement’s section Additional
sustainability disclosures in order to provide data for corporate
sustainability assessments and interested stakeholders.
The double materiality assessment identified and evaluated
relevant impacts, risks, and opportunities related to biodiversity
and ecosystems. The assessment did not include the screening of
site locations pertaining to Nokian Tyres’ operations, however.
As a tire manufacturer, Nokian Tyres is dependent on natural rubber,
the cultivation of which has been identified to cause negative
biodiversity impacts. In the summer 2023 shortly before the double
materiality assessment process began, the biodiversity risks in
Nokian Tyres’ supply chain were assessed using the WWF’s biodiver-
sity risk filter. The filter includes systemic, transition, and physical
risk and opportunity assessment and identification. According to this
assessment that later was utilized in the double materiality analysis,
the biggest and the broadest biodiversity impacts in Nokian Tyres’
raw material chain come from pollution, deforestation, and land
use change, and natural rubber cultivation impacts biodiversity the
most. In the assessment, the most important supplier locations and
industry sectors were prioritized based on how high their physical
versus reputational risk scores were. 32 sites were considered most
impactful on biodiversity. Of the 32 sites, 23 are natural rubber
farmers and manufacturers, three metal cord manufacturers,
two textile/belt manufacturers, one is an oil company, and one is
a chemical manufacturer. Regarding biodiversity risks, the most
important countries for Nokian Tyres are Indonesia and Malaysia. The
actual biodiversity impacts of individual supplier sites have not been
investigated. Any mitigation measures required have not yet been
defined.
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Nokian Tyres is a member of the Global Platform for Sustainable
Natural Rubber (GPSNR) and is informed of the affected communities
views through the GPSNR cooperation.
Natural diversity and the factors affecting have been assessed at
the tire factories in Finland, the US, and Romania, as well as the
test tracks and the Vianor service centers owned by the company.
According to the assessments, Nokian Tyres’ current operations have
no direct effects on biodiversity.
Nokian Tyres’ double materiality assessment identified and eval-
uated the use of material resources, as well as impacts, risks, and
opportunities related to the circular economy. This assessment did
not include the screening of site locations pertaining to Nokian Tyres’
operations, however.
During the assessment process, the company engaged with
stakeholders and consulted the affected communities. No further
assessments concerning circular economy risks and opportunities
have been conducted.
Nokian Tyres is committed to continuously improving the quality,
safety, and environmental sustainability of its products, services, and
processes. As the company transitions from fossil-based materials
to renewable or recycled alternatives, this shift is carefully managed
through the gradual substitution of these materials.
The integration of new raw materials necessitates extensive product
development and rigorous testing to ensure the optimal combination
of properties for tire performance. It is crucial that the adoption of
renewable and recycled materials does not compromise the safety
characteristics of Nokian Tyres’ products.
During the double materiality analysis, Business conduct was mainly
evaluated through the risk of potentially occurring misconduct
or violations and therefore, received a fairly low materiality score.
Nokian Tyres has well-established, existing processes in place
through which it can demonstrate and report how it mitigates
potentially occurring impacts and risks. Ethical business conduct was,
however, included in the scope of materiality, as it often represents a
hygiene factor and foundation for sustainable business. The impacts
and opportunities that received the highest score in the assessment
were included in reporting.
IRO-2 Coverage of the Sustainability Statement
The ESRS Disclosure Requirements covered by this Sustainability
Statement are presented in the ESRS Content Index on pages
127–130. An index of datapoints deriving from other EU legislation is
presented on pages 131–136.
When disclosing information related to material topics, experts
used their judgment to decide on which information is necessary
to provide the needed understanding to stakeholders, and the
members of the Management Team who are responsible for the
development of the matters under their lead have reviewed and
validated the disclosed information. Actions that were deemed not
to provide material information regarding the material topics were
not disclosed.
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Nokian Tyres is committed
to environmental responsibility
in its own operations and
in the value chain.
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Environmental
information
EU Taxonomy 65
E1 Climate change 72
E2 Pollution 80
E4 Biodiversity and ecosystems 85
E5 Circular economy 89
General information
Environmental information
Social information
Governance information
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ENVIRONMENTAL INFORMATION
EU Tax onomy
The EU’s Taxonomy Regulation is designed to support the transfor-
mation of the EU economy to meet its European Green Deal objec-
tives, including the 2050 climate-neutrality target. The Taxonomy
Regulation classifies economic activities, which can be potentially
aligned with EU’s environmental targets. At the core of the Taxonomy
Regulation is the definition of a sustainable economic activity. This
definition is based on two criteria. An activity must:
• Contribute to at least one of six environmental objectives listed
in the Taxonomy; and
• Do no significant harm to any of the other objectives, while
respecting basic human rights and labor standards.
Nokian Tyres has conducted an assessment of taxonomy eligibility
and taxonomy alignment based on the best interpretation of the EU
Taxonomy Regulation, the Climate Delegated Act, and the guidelines
provided by the European Commission. Nokian Tyres’ sustainability
experts have evaluated whether the economic activities identified in
the taxonomy meet the criteria for taxonomy alignment. The assess-
ment covered the criteria for substantial contribution and do no
significant harm for each economic activity to determine taxonomy
alignment. Minimum safeguards were reviewed at the group level.
The assessment and its results have also been externally reviewed.
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Do no significant harm (DNSH)
While assessing the do no significant harm criteria, Nokian Tyres
was found to be compliant. The company has reviewed the policies
and procedures related to the topics below. Nokian Tyres has also
conducted environmental impact assessments as part of ISO 14001
certification, and all required measures for protecting the environ-
ment are implemented based on the local regulatory requirements
and included in the company’s ISO 14001 certification and auditing
processes.
Regarding climate change adaptation, Nokian Tyres performs
regular climate risk assessments. The company has also conducted
a scenario analysis. More information about the analyses and the risk
and opportunity management process can be found under ESRS 2
IRO-1 and E1 SBM-3.
Regarding sustainable use and protection of water resources,
water risk assessments for Nokian Tyres’ production sites have
been conducted using the WWF’s water risks filters, and they are
updated every three years. The assessments confirm that Nokian
Tyres’ water-related risks are minor and that the company does not
operate in water-stressed areas.
Nokian Tyres has reviewed the criteria for pollution prevention
and control. Nokian Tyres does not use any carcinogenic or SVHC
chemicals. More information about chemical use and control can be
found under E4-3.
While transitioning to a circular economy, the company shifts from
fossil-based materials to more sustainable alternatives with the
target of increasing the share of renewable or recycled raw materials
used in its tires to 50 percent by 2030. More information can be
found under E5-1.
Regarding protection and restoration of biodiversity, according to
the assessments conducted by Nokian Tyres, the company’s current
operations have no direct effects on biodiversity. The biodiversity
risks in Nokian Tyres’ supply chain were assessed using the WWF’s
biodiversity risk filter. More information about the assessments can
be found under E4 SBM-3.
Minimum social safeguards
Nokian Tyres reviewed the minimum social safeguards criteria on
human rights, bribery and corruption, taxation and fair competition,
and found to be compliant after assessing the processes, controls,
and compliance measures related to these topics. The company’s key
policies, such as the Code of Conduct, Supplier Code of Conduct, and
Anti-Bribery and Conflict of Interest Code of Conduct outline the
principles expected from the company and its employees, suppliers,
and other business partners. Nokian Tyres has also defined its human
rights due diligence process, and the company is committed to
acting in the manner required by the UN’s Guiding Principles for Busi-
ness and Human Rights, and to following the International Labour
Organization’s (ILO) Declaration on Fundamental Principles and Rights
at Work. Nokian Tyres is a supporting member of the UN’s Global
Compact initiative, and the company follows its ethical principles.
Economic activities
The tire industry is included in the economic activity groups
Manufacture of other low carbon technologies of Climate change
mitigation and Remanufacturing of Transition to a circular economy in
the EU Taxonomy’s technical screening criteria. After investigating the
EU Taxonomy’s technical screening criteria, the following conclusions
on Nokian Tyres’ economic activities have been made:
• Tires with low rolling resistance ratings which are manufac-
tured by Nokian Tyres have substantially lower life cycle carbon
footprint than corresponding average tires.
• At this stage, Nokian Tyres has excluded all heavy off-road tires
for professional use as there is no solid comparison data available
of use phase CO
2
emissions for heavy off-road tires for profes-
sional use.
• Tire retreading can be included in the Remanufacturing section
of the EU Taxonomy’s Transition to circular economy environ-
mental target.
Manufacture of tires with low life-cycle greenhouse gas emissions
and tire retreading business activities represented 14.9 percent of
Nokian Tyres’ total net sales in 2024. Based on Nokian Tyres’ assess-
ment, these economic activities are eligible with the EU Taxonomy.
Regarding tire retreading, reporting on taxonomy eligibility began in
2024. Share of Opex within the same scope of EU Taxonomy was 11.9
percent, and share of Capex within the same scope of EU Taxonomy
was 3.8 percent.
It must be noted that the Taxonomy reporting scope and criteria may
change in coming years as this is only the fourth reporting round, and
therefore also the figures may not be comparable between earlier
and future reporting periods.
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Nokian Tyres’ approach to calculate
the EU Taxonomy eligibility:
Net sales
• A: Amount of eligible net sales coming from tires that have EU
Tyre Labelling grade A or B in rolling resistance and from tire
retreading business activities, amounting to EUR 192.5 (135.0)
million. Heavy off-road tires for professional use are excluded
as there is no solid data (or public benchmark) available for use
phase CO
2
emissions.
• B: Total amount of net sales under EU taxonomy is equal to
the net sales reported in the consolidated income statement,
amounting to EUR 1,289.8 (1,173.6) million
• C: Share of net sales within the scope of EU Taxonomy
• C = A/B%
Capex and Opex
• D: Eligible tire production companies’ and retreading plants’ Opex:
Research and Development and real estate expenses deducted
by depreciation and amortization, amounting to EUR 4.7 (3.8)
million
• E: Group Opex: Research and Development and real estate
expenses deducted by depreciation ad amortization, amounting
to EUR 39.2 (36.5) million
• F: Share of Opex within the scope of EU Taxonomy
• F = C*D/E%
Justification: represents share of Opex used for producing low rolling
resistance tires and offering retreading services with reasonable
accuracy.
• G: Eligible tire production companies’ and retreading plants’
tangible, intangible, and right of use Capex, amounting to EUR
15.4 (18.1) million
• H: Group Capex under EU taxonomy including tangible, intangible,
and right of use investments amounting to EUR 400.1 (299.7)
million. Acquisitions of property, plant and equipment and
intangible assets as included in the consolidated statement of
cash flows amounting to EUR 350.1 (252.2) million excludes the
impact from additions to right-of-use assets of EUR 50.0 (47.5)
million. Additions to right-of-use assets are included in note 15 of
the consolidated financial statements. The impact of additions to
tangible and intangible assets are included in the note 13 and 14.
• I: Share of Capex within the scope of EU Taxonomy
• I = C*G/H%
Justification: represents share of Capex used for production readi-
ness for low rolling resistance tires and offering retreading services
with reasonable accuracy.
Remark: handpicking and assessing each investment’s relation to
EU Taxonomy separately is regarded not to give much additional
accuracy.
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Proportion of turnover from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024
Financial year 2024 Substantial contribution criteria DNSH criteria (“Does Not Significantly Harm”)
Economic Activities (1) Code (2)
Turnover (3)
Proportion of
turnover, year
2024 (4)
Climate Change
Mitigation (5)
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular
Economy (9)
Biodiversity (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular
Economy (15)
Biodiversity (16)
Minimum
Safeguards (17)
Proportion of
Taxonomy-
aligned (A.1.) or
-eligible (A.2.)
turnover, year
2023 (18)
Category
enabling
activity (19)
Category
transitional
activity (20)
EUR
million %
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Manufacturing of other low carbon technologies 3.6.
174.9 13.6% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 11.5%* E
Repair, refurbishment and remanufacturing 5.1.
17.6 1.4% N/EL N/EL N/EL N/EL Y N/EL Y Y Y Y Y Y -
Turnover of environmentally sustainable
activities (Taxonomy-aligned) (A.1)
192.5 14.9% 91% 0% 0% 0% 9% 0% Y Y Y Y Y 11.5%*
Of which enabling
192.5 14.9% 91% 0% 0% 0% 9% 0% Y Y Y Y Y 11.5%* E
Of which transitional
A.2. Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities)
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
Turnover of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
- - - - - - - - 1.4%
A. Turnover of Taxonomy-eligible activities
(A.1+A.2)
192.5 14.9% 12.9%*
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities
1,097.3 85.1%
TOTAL
1,289.8 100%
*Year 2023 restated
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Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024
Financial year 2024 Substantial contribution criteria DNSH criteria (“Does Not Significantly Harm”)
Economic Activities (1) Code (2)
CapEx (3)
Proportion of
CapEx, year
2024 (4)
Climate Change
Mitigation (5)
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular
Economy (9)
Biodiversity (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular
Economy (15)
Biodiversity (16)
Minimum
Safeguards (17)
Proportion of
Taxonomy-
aligned (A.1.) or
-eligible (A.2.)
CapEx, year
2023 (18)
Category
enabling
activity (19)
Category
transitional
activity (20)
EUR
million %
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Manufacturing of other low carbon technologies 3.6.
14.9 3.7% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 6.0%*
E
Repair, refurbishment and remanufacturing 5.1.
0.4 0.1% N/EL N/EL N/EL N/EL Y N/EL Y Y Y Y Y Y -
CapEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1)
15.4 3.8% 97% 0% 0% 0% 3% 0% Y Y Y Y Y 6.0%*
Of which enabling
15.4 3.8% 97% 0% 0% 0% 3% 0% Y Y Y Y Y 6.0%*
E
Of which transitional
A.2. Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities)
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
CapEx of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
- - - - - - - - 0.0%
A. CapEx of Taxonomy-eligible activities
(A.1+A.2)
15.4 3.8% 6.0%*
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities
384.7 96.2%
TOTAL
400.1 100%
*Year 2023 restated
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Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024
Financial year 2024 Substantial contribution criteria DNSH criteria (“Does Not Significantly Harm”)
Economic Activities (1) Code (2)
OpEx (3)
Proportion of
OpEx, year
2024 (4)
Climate Change
Mitigation (5)
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular
Economy (9)
Biodiversity (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular
Economy (15)
Biodiversity (16)
Minimum
Safeguards (17)
Proportion of
Taxonomy-
aligned (A.1.) or
-eligible (A.2.)
OpEx, year
2023 (18)
Category
enabling
activity (19)
Category
transitional
activity (20)
EUR
million %
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Manufacturing of other low carbon technologies 3.6.
4.7 11.9%
Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y
10.3%*
E
Repair, refurbishment and remanufacturing 5.1.
- 0.0%
N/EL N/EL N/EL N/EL Y N/EL Y Y Y Y Y Y
-
OpEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1)
4.7 11.9% 100% 0% 0% 0% 0% 0%
Y Y Y Y Y
10.3%*
Of which enabling
4.7 11.9% 100% 0% 0% 0% 0% 0%
Y Y Y Y Y
10.3%*
E
Of which transitional
A.2. Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities)
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
OpEx of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
- - - - - - - - 0.0%
A. OpEx of Taxonomy-eligible activities
(A.1+A.2)
4.7 11.9% 10.3%*
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities
34.6 88.1%
TOTAL
39.2 100%
*Year 2023 restated
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Nuclear and fossil gas related activities
Nuclear energy related activities YES/NO
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative
electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. No
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to
produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen
production, as well as their safety upgrades, using best available technologies. No
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce
electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production
from nuclear energy, as well as their safety upgrades. No
Fossil gas related activities YES/NO
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that
produce electricity using fossil gaseous fuels. No
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool
and power generation facilities using fossil gaseous fuels. No
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation
facilities that produce heat/cool using fossil gaseous fuels. No
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ENVIRONMENTAL INFORMATION
E1 Climate change
Material topic in
Nokian Tyres’ context Impact, risk, opportunity Policy or work instruction Management
Emissions and energy • Negative impacts due to
greenhouse gas emissions from
own operations (Scope 1 and 2)
• Negative impacts due to
greenhouse gas emissions in the
value chain (Scope 3)
• Opportunity of increased revenue
and/or cost savings due to
climate-friendly technologies
• Opportunity of increased revenue
from competitive product
portfolio
• Opportunity of increased revenue
due to innovative and low-carbon
raw materials
• Risk of increasing costs related to
tire raw materials
• Risk of further environmental fees
(e.g. additional taxes, certification
costs)
Environmental, Safety, and
Quality Guideline, Code of
Conduct, Supplier Code
of Conduct, Sustainable
Natural Rubber Policy
Nokian Tyres is committed to
environmental responsibility, focusing
on reducing greenhouse gas emissions,
improving energy efficiency, and
prioritizing renewable energy.
The company continuously improves
the quality, safety and environmental
friendliness of its products, services,
and processes.
Nokian Tyres prioritizes long-term
relationships with its suppliers while
continually seeking more competitive
sources of supply.
The company requires suppliers to
identify, monitor, manage, and reduce
air emissions, aiming for low-carbon
solutions where possible.
Additionally, Nokian Tyres conducts
regular internal audits to ensure
compliance with customer and
legislative requirements, regulations,
and instructions, as well as to evaluate
the efficiency of its operational
systems.
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E1-1 Transition strategy for
climate change mitigation
Nokian Tyres is currently creating its transition plan in line with
the EU's Corporate Sustainability Due Diligence Directive and will
finalize it in spring 2025. The foundation of the plan already exists,
as in 2024 the company's new, more ambitious emissions reduction
targets were approved by the Science Based Targets initiative (SBTi)
and confirmed by Nokian Tyres’ Board of Directors. Nokian Tyres'
new Scope 1 and 2 targets align with the 1.5-degree pathway, and
the company also has new Scope 3 targets. The approval process
involved adjusting the operational units included in the scope and
refining calculation methods for tracking progress.
Key actions include changes to Nokian Tyres’ product and service
portfolio, as well as the adoption of new technologies across opera-
tions and the value chain:
• The new Oradea factory in Romania is the world’s first tire factory
with zero CO
2
e emissions (Scope 1 and 2). All energy used at the
factory comes from zero-emission sources such as wind, hydro,
biomass, solar energy, or a mix of these. Steam for tire manufac-
turing is produced without fossil fuels. Once fully operational, the
factory will have an annual production capacity of six million tires,
with potential for future expansion.
• Study for replacing fossil fuels is ongoing. Nokian Tyres will
transition to zero-emission energy sources, particularly in
the US factory.
SBM-3 Aiming for leadership in
addressing climate change
Nokian Tyres aims to demonstrate leadership in addressing climate
change by setting ambitious climate targets. The company seeks to
reduce emissions across the company’s operations and supply chain,
as well as tire usage. Around 90 percent of the carbon footprint of a
tire from Nokian Tyres is generated during its use, with fuel or energy
consumption being the most significant environmental impact over
the tire’s lifespan. Tires with low rolling resistance help save fuel and
reduce CO
2
e emissions.
Analyzing material climate risks
The tire industry faces various climate-related risks, including
shifting consumer preferences, regulatory changes, and the effects
of extreme weather on natural rubber production. After identifying
the most material physical and transition risks, Nokian Tyres carried
out a scenario analysis between December 2023 and February 2024
to increase understanding of the resiliency of the company and how
certain scenarios in the short (<2030), medium (2030–2040), and
long term (2040–2050) may impact the company financially moving
forward. The scenario analysis examined the resilience of the entire
Nokian Tyres organization.
The results of the analysis of material transition risks showed that
both price and availability of more renewable materials can be
expected to be vulnerable. As the development of alternatives is still
on-going the likelihood of this risk affecting Nokian Tyres short-term
can be expected to be high, and medium in medium and long term.
As this transition requires high resources for R&D and a shortage of
the material can entail a high loss of income, the potential financial
risk is considered high in the short term and medium in the medium-,
and long-term. To mitigate these risks, Nokian Tyres plans to keep
investing in R&D regarding both natural rubber and other alternatives
to fossil-based materials. By investing in early research regarding
both Nokian Tyres can create itself the opportunity to stay ahead
of the curve and avoid being affected by potential supply shortages
and price spikes.
The results also showed that carbon taxes are expected to rise
significantly. Based on the analysis, the likelihood of carbon prices
affecting the company in the short, medium and long term is consid-
ered high and thus it having the potential to cause a medium finan-
cial impact. Nokian Tyres increases the use of non-fossil materials,
which decreases the risk. The company also participates in industry
sector working groups and closely monitors emerging regulation.
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E1-2 Policies related to climate change mitigation
and adaptation
Nokian Tyres Code of Conduct states that the company is com-
mitted to reducing greenhouse gas emissions. The Environmental,
Safety, and Quality Guideline elaborates the matter further by
stating Nokian Tyres’ commitment to environmental responsibility,
which includes but is not limited to reducing greenhouse gas emis-
sions, improving energy efficiency, and preferring renewable energy.
The guideline also pledges to set targets to reduce environmental
impacts. The President and CEO is accountable for its implementation.
The Environmental, Safety, and Quality Guideline can be found on
the company website. Nokian Tyres is committed to consulting with
stakeholders on environmental matters and reporting on them
regularly. Customer requirements were taken into account when
updating the guideline in 2024. In previous updates, the views of
other stakeholders had also been considered.
According to Nokian Tyres Supplier Code of Conduct, the supplier
shall identify, monitor, manage, and reduce emissions to air from its
operations. The supplier shall seek for low carbon solutions, when
possible.
Nokian Tyres Sustainable Natural Rubber Policy expects natural
rubber suppliers to join in the combat against climate change.
Suppliers are, for example, expected to manage their operations in
a manner that minimizes and mitigates greenhouse gas emissions
(including carbon emissions) and to actively seek for low carbon
solutions, when possible.
The company’s Senior Vice President, Operation Excellence, who is
a member of the Management Team, is the most senior executive
accountable for the implementation of the Supplier Code of Conduct
and Sustainable Natural Rubber Policy. Both policies are available on
the company website.
Greenhouse gas emissions
Nokian Tyres is committed to reducing greenhouse gas emissions
from its operations in order to combat climate change. The green-
house gas emissions from the operations are calculated annually
and reduced systematically. Nokian Tyres monitors and reports
its greenhouse gas emissions through the calculation of the CO
2
equivalent unit, CO
2
e. Nokian Tyres’ tire production’s greenhouse gas
(GHG) emissions from raw material purchasing to the disposal of the
product are calculated in compliance with the ISO 14064 standard
and the GHG protocol.
In May 2018, the company joined the Science Based Targets initiative
(SBTi) with the aim of setting more precise climate targets that are
assessed and validated by an external organization. The company’s
science-based greenhouse gas emissions reduction targets were
published in May 2020, and Nokian Tyres was the first company in
the tire industry to have its targets officially approved by the Science
Based Targets initiative.
In 2023 Nokian Tyres committed to setting targets to reach
science-based net-zero greenhouse gas emissions by 2050. The SBTi
approved Nokian Tyres’ new and more ambitious emission reduction
targets in 2024, and these updated Scope 1 and 2 targets align with
the 1.5-degree pathway. The approval process involved adjusting
the operational units included in the scope and refining calculation
methods for tracking progress.
E1-3 Actions and resources in relation to
climate change policies
Reducing greenhouse gas emissions
Nokian Tyres will continue purchasing zero CO
2
e and renewable
energy certificates for the factories in Finland and in the US and
for Vianor. This approach will cover Scope 2 emissions for both the
reporting year and future periods. The company estimates electricity
use for both factories and assesses how these certificates reduce
GHG emissions both now and in the future.
Additionally, the construction of the factory in Romania is another
critical action, impacting both the reporting year and future. Since
the Romanian factory is a zero CO
2
e factory, it is important for
Nokian Tyres to evaluate how much less emissions are created by
producing tires there compared to production in Finland or in the US.
Nokian Tyres estimates that emissions reductions are significant.
In the coming years, Nokian Tyres will concentrate on actions that are
to be defined in the transition plan.
Tires’ rolling resistance affects emissions from driving
The use of fossil fuels accounts for most of human-generated
carbon emissions. Carbon dioxide is the most significant greenhouse
gas generated by traffic. When a tire rolls against the road surface,
energy is lost mainly due to heat build-up; this is referred to as the
rolling resistance. The higher the rolling resistance is, the higher the
fuel consumption and CO
2
emissions will be.
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Fuel consumption during driving is the single most significant
environmental impact over a tire’s service life. Tires with low rolling
resistance may save more than 0.5 liters of fuel per 100 kilometers,
and thus reduce CO
2
emissions.
The level of lower rolling resistance tires (class A, B, and C tires)
manufactured by Nokian Tyres is over 90 percent, and the company
continues to invest in the development of new low rolling resistance
tires. The EU Tyre Label categorizes fuel efficiency on a scale from
A to E. More information about the label categories is presented in
the topic “Consumers and end users”. At the moment, class C is the
most common fuel economy rating for Nokian Tyres’ passenger car
tires.
Approximately 90 percent of a Nokian Tyres’ tire’s carbon footprint is
created during its use. A wise choice of tires, the right tire pressure,
and a careful driving style significantly reduce the CO
2
emissions
from driving.
E1-4 Targeting to reduce emissions across
the value chain
Science-based targets
Nokian Tyres’ four science-based emissions reduction targets are
in line with the Paris Agreement and the 1.5 degrees pathway. The
base year for the targets is 2022. The two near term targets should
be achieved by 2030 and the two long term targets by 2050. The
Science Based Targets initiative (SBTi) has validated the targets, and
Nokian Tyres Board of Directors has confirmed them.
The consistency of greenhouse gas (GHG) emission reduction targets
with GHG inventory boundaries was ensured through approval by
the SBTi. Nokian Tyres selected 2022 as the base year to ensure that
the baseline value accurately represents the activities covered and
accounts for external influences, making the data as current and
relevant as possible. The base year values are available in the table
Greenhouse gas emissions.
SHORT-TERM TARGETS, BY 2030:
Absolute Scope 1 and 2 GHG emissions:
• Reduce by 42 percent from the 2022 base year.
Scope 3 GHG emissions:
• Reduce by 51.6 percent per ton of product purchased.
• Targets include emissions from purchased goods and services,
and upstream transportation and distribution.
LONG-TERM TARGETS, BY 2050:
Absolute Scope 1 and 2 GHG emissions:
• Reduce by 90 percent from the 2022 base year.
Scope 3 GHG emissions:
• Reduce by 97 percent per ton of product purchased.
• Targets include emissions from purchased goods and services,
capital goods, and upstream transportation and distribution.
Reducing emissions from traffic
To reduce emissions from traffic, the company aims to have at least
60 products in the best rolling resistance A class by 2028. It’s good
to note that the number of A class tires does not increase linearly
but is dependent on new product launches as well as discontinued
products. During 2024, no new products were included in the rolling
resistance class A of EU Tyre Labelling.
Nokian Tyres products in the rolling resistance A class*
Status in 2024 Goal for 2028
10 min. 60
*Tires included in the EU Tyre Labelling.
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E1-5 Energy consumption and mix
Nokian Tyres purchases energy for the factories from external
suppliers, and the company also generates some of the electricity
and steam that it uses. In 2024, 66.3 percent of all energy used in the
tire factories was produced from renewable energy sources.
The high climate impact sectors used to determine the energy
intensity are
Manufacture of rubber and plastic products
NACE
code C22.11 for Nokian Tyres and
Sale of motor vehicle parts and
accessories
NACE code G45.3 for Vianor.
Energy consumption and mix
2024 2023
(1) Fuel consumption from coal and coal products (MWh) - -
(2) Fuel consumption from crude oil and petroleum products (MWh) 4,483 4,513
(3) Fuel consumption from natural gas (MWh) 71,140 58,114
(4) Fuel consumption from other fossil sources (MWh) - -
(5) Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh) 37,974 68,799
(6) Total fossil energy consumption (MWh) (calculated as the sum of lines 1 to 5) 113,596 131,426
Share of fossil sources in total energy consumption (%) 29.9% 36.2%
(7) Consumption from nuclear sources (MWh) 55,280 90,000
Share of consumption from nuclear sources in total energy consumption (%) 14.5% 24.8%
(8) Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biologic
origin, biogas, renewable hydrogen, etc.) (MWh) 338 308
(9) Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh) 207, 534 138,441
(10) The consumption of self-generated non-fuel renewable energy (MWh) 3,217 2,911
(11) Total renewable energy consumption (MWh) (calculated as the sum of lines 8 to 10) 211,089 141,661
Share of renewable sources in total energy consumption (%) 55.6% 39.0%
Total energy consumption (MWh) (calculated as the sum of lines 6, and 11) 379,966 363,087
Energy intensity per net sales
2024 2023
% 2024/
2023
Total energy consumption from activities in high climate impact sectors per net sales from activities
in high climate impact sectors (MWh/€) 0.0003 0.0003 95%
Net sales from activities in high climate impact
sectors used to calculate energy intensity (EUR million)" 1,289.8 1,173.6
Net sales (other) (EUR million) - -
Total net sales (Financial Statements) (EUR million) 1,289.8 1,173.6
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E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions
Nokian Tyres' Scope 1 emissions include emissions from self-gen-
erated energy and from vehicles. The emissions are calculated
using Defra emissions factors and emissions data from the fleet
management company. Scope 2 location-based emissions calcula-
tion is based on the average emissions intensity of power grids in the
operations countries, using emissions factors from the IEA (Interna-
tional Energy Agency). In Scope 2 market-based emissions calcula-
tion, supplier-based emissions factors are used where available and
in other cases the calculation is based on country-level residual mix
emissions factors from the AIB (Association of Issuing Bodies). The
emissions factors for district heating are from Defra.
Scope 3 categories exclude those that are not related to Nokian
Tyres’ business (e.g. category 15) and those that account for less
than one percent of the group's total emissions (e.g. category 6).
Calculation principles for Scope 3 emissions are described below:
Category 1: Purchased goods and services
Raw material emissions were calculated by multiplying the mass of
received raw materials with emissions factors from suppliers or from
sustainability software libraries representing the industry average
values. For other purchased products for which data on quantity was
available, the emissions factors were estimated using Nokian Tyres’
own production data. For purchased steel, emissions factors were
received from steel producer. The emission of all other goods and
services were calculated using spend-data and multiplied with Defra
monetary emissions factors. The Nokian Tyres spend categories do
not completely match with Defra emissions factors, and therefore
the most suitable emissions factor was selected for each spend
category.
Primary data: 80 percent. Secondary data: 20 percent.
Category 2: Capital goods
CO
2
e emissions were calculated using the spend data multiplied with
Defra emissions factors. Nokian Tyres’ spend categories do not com-
Greenhouse gas emissions
Retrospective Milestones and target years
Base year 2023 2024
% 2024/
2023 2025 2030 (2050)
Annual %
target/
Base year
2
Scope 1 GHG emissions
2022
Gross Scope 1 GHG emissions (tCO
2
eq)
10,978 13,151 15,195 116% 12,000 10,000 2,000 1.1%
Percentage of Scope 1 GHG emissions from regulated
emission trading schemes (%)
0 0 0
Scope 2 GHG emissions
2022
Gross location-based Scope 2 GHG emissions (tCO
2
eq)
26,562 28,566 28,840 101%
Gross market-based Scope 2 GHG emissions (tCO
2
eq)
21,390 17,340 7,803 45% 15,250 8,750 1,250 7.4%
Significant scope 3 GHG emissions
2022
Total Gross indirect (Scope 3) GHG emissions (tCO
2
eq)
7,151,790 8,072,798 7,642,987 95%
1) Purchased goods and services
589,545 579,360 647,242 112% 409,924 409,885 64,852 3.8%
2) Capital goods
54,206 96,545 135,476 140% 49,704 66,805 5,545 -2.9%
3) Fuel and energy-related Activities (not included in
Scope 1 or Scope 2)
13,925 15,211 16,321 107%
4) Upstream transportation and distribution
53,124 45,515 57,603 127% 44,202 44,183 5,477 2.1%
5) Waste generated in operations
280 303 267 88%
7) Employee commuting
1
1,059 1,239 1,368 110%
8) Upstream leased assets
12,708 11,139 8,323 75%
9) Downstream transportation
446 325 241 74%
11) Use of sold products
6,422,428 7,318,256 6,770,121 93%
12) End-of-life treatment of sold products
4,070 4,904 6,025 123%
Total GHG emissions
Total GHG emissions (location-based) (tCO
2
eq)
7,189,330 8,114,515 7,6 87,022 95%
Total GHG emissions (market-based) (tCO
2
eq)
7,184,158 8,103,289 7,665,985 95%
1
Includes the tire factories in Finland and in the US.
2
2030 target used in calculation.
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GHG intensity per net sales
2024 2023
% 2024/
2023
Total GHG emissions (location-based) per net sales (tCO
2
eq/€) 0.006 0.007 86%
Total GHG emissions (market-based) per net sales (tCO
2
eq/€) 0.006 0.007 86%
Net sales used to calculate GHG intensity (EUR million) 1,289.8 1,173.6
Net sales (other) (EUR million) - -
Total net sales (in Financial Statements) (EUR million) 1,289.8 1,173.6
pletely match with Defra emissions factors, and therefore the most
suitable emissions factor was selected for each spend category.
Primary data: 0 percent. Secondary data: 100 percent.
Category 3: Fuel- and energy-related activities (not included in
Scopes 1 and 2)
The main sources for energy consumption figures were Nokian Tyres’
own systems and meters and energy supplier invoices or portals.
The source for some of Vianor’s electricity figures were centralized
portals or electricity provider portals, and energy consumption
for service centers which were not included in the portals were
calculated using the average electricity consumption per service
center. Vianor’s heat energy consumption was estimated based on
the average energy consumption of Vianor Finland, for which the
data source was Vianor Finland invoices.
Primary data: 100 percent. Secondary data: 0 percent.
Category 4: Upstream transportation and distribution
Some transportation suppliers report the CO
2
e data related to raw
material and tire transportations, covering approximately 20 percent
of upstream transportation and distribution emissions in 2024. For
the remaining share, the emissions were calculated using the mass
of received goods per country of origin and estimated distances
covered per each transportation mode. Country of origin distances
per transportation mode were estimated per each destination
(Nokian Tyres’ location).
In wheel manufacturing operations, the three biggest suppliers
(by mass) were identified, and their haulages were calculated.
Haulage means multiplying the mass with the distance, and its
unit is tonne-kilometer, tkm. The haulages were summarized and
then extrapolated to represent 100 percent of transportation of
purchased materials. A similar approach was used for final goods
transportation.
Primary data: 30 percent. Secondary data: 70 percent.
Category 5: Waste generated in operations
Nokian Tyres received activity data from waste management sup-
pliers’ portals and reports. Waste was classified according to waste
type and waste treatment type, and multiplied with the correspond-
ing Defra emissions factor.
Warehouses, sales companies and test centers’ waste was excluded
due to lack of precise data. However, the share is small (0.001% of
total Scope 3 emissions).
Primary data: 100 percent. Secondary data: 0 percent.
Category 6: Business travel
This category is excluded from Nokian Tyres’ GHG inventory, as its
share of total Scope 3 emissions is small (0.01%). Additionally, the
GHG emissions data is only partly available from travel agencies, and
therefore the rest of the data is fully estimated.
Category 7: Employee commuting
Employee commuting includes only tire factories in Finland and
in the US. The CO
2
e emissions were calculated by multiplying the
quantity of employees with average commuting days and average
commuting distance. The headcount figures are actual from Nokian
Tyres’ HR system, and the average commuting days and distances
are estimates.
The total distances received from the calculations were split per
transportation mode. The shares of transportation modes are
estimates. Total kilometers per transportation mode are linked to
related emissions factor from Defra.
Primary data: 0 percent. Secondary data: 100 percent.
Category 8: Upstream leased assets
Nokian Tyres’ upstream leased assets include leased warehouses,
leased offices, and leased vehicles. The average energy consumption
of warehouses was calculated by using the energy data from ware-
houses where the energy consumption and storage capacity and
storage area were known. The warehouses’ energy consumption was
estimated by using the previously mentioned average and storage
area of all warehouses.
Average energy consumption per office employee was calculated
from energy consumption and headcount data. The total energy
consumption per office was calculated by multiplying the average
energy consumption per employee with the quantity of employees
for each office.
For warehouses and offices, CO
2
emissions were calculated with
Defra emissions factors.
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The vehicle fleet management company estimates the annual
emissions per vehicle. Nokian Tyres’ average fleet emission factor
kg CO
2
e/vehicle was calculated from the total fleet report. The total
leased vehicles’ CO
2
e emissions were calculated by multiplying the
quantity of vehicles with the average fleet emission factor.
Primary data: 40 percent. Secondary data 60 percent.
Category 9: Downstream transportation and distribution
Less than one percent of tire deliveries was paid for by the custom-
ers. Calculation was distance-based, using the country level average
estimated distances and the average weight and quantity of the
products transported.
From wheel manufacturing, roughly 25 percent of final goods deliver-
ies are paid for by the customers. In the haulage calculation, top 3–5
highest quantity customers (by mass) haulages were calculated. This
was extrapolated to 100 percent of final product transportation.
Total wheel transportation and distribution emissions were then
calculated, and the 25 percent share of customer paid transporta-
tion was calculated and reported as downstream transportation and
distribution.
Primary data: 0 percent. Secondary data: 100 percent.
Category 10: Processing of sold products
Most tires were installed in Vianor service centers, and therefore
the energy consumption of installation is already included in Nokian
Tyres’ GHG inventory (Scope 1 and 2). Thus, Nokian Tyres considers
category 10 as not applicable.
Category 11: Use of sold products
For all passenger car tires, an average use phase emissions factor
was calculated according to formulas stated in the Product Category
Rules for Tires.
For all other tires, an average use phase emissions factor was calcu-
lated with Nokian Tyres’ own formula, which considers machinery’s
estimated fuel consumption, quantity of tires per machine, esti-
mated tire life cycle, estimated share of machinery fuel consumption
related to tires, and diesel emission factor in Finland.
Nokian Tyres opted to leave out the purchased and produced wheels
(rims), because according to the GHG protocol, this is an optional
category if emissions are indirect. Wheels do not consume energy or
produce emissions, but they indirectly affect vehicle fuel consump-
tion negatively due to rolling resistance.
Primary data: 0 percent. Secondary data: 100 percent.
Category 12: End-of-life treatment of sold products
The average tire masses were multiplied with the quantity of
produced and purchased tires per tire classes (passenger car, truck
and bus, heavy tires).
Each country has its own distribution of how end-of-life tires are
treated. For Finland, Sweden and Norway, the distributions are
received from the tire recycling companies. For other countries,
average values per region from Product Category Rules for Tires are
used.
The total masses of wheels are separated into recycled and landfilled
(OECD: 85 percent recycled, so the remaining 15 percent is consid-
ered to be landfilled).
The total masses per disposal method were linked to corresponding
emissions factor from Defra to calculate the related emissions. All
reused and recycled end-of-life products were considered with zero
CO
2
emission for Nokian Tyres GHG inventory.
Primary data: 0 percent. Secondary data 100 percent.
Category 13: Downstream leased assets
Nokian Tyres does not have downstream leased assets, and therefore
this category is not applicable.
Category 14: Franchises
Nokian Tyres does not have franchises, and therefore this category is
not applicable.
Category 15: Investments
Nokian Tyres does not operate in the investment business, and
therefore this category is not applicable.
The amount of biogenic emissions from the Finnish tire factory in
Scope 2 was 40,506 tons CO
2
e. Scope 2 data is not available from
other sites or operations. For Scope 1 and 3, data is not available.
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ENVIRONMENTAL INFORMATION
E2 Pollution
Material topic in
Nokian Tyres’ context
Impact, risk,
opportunity
Policy or work
instruction Management
Pollution • Negative impacts in
terms of pollution of
air, water and soil
• Adverse health
and environmental
impacts from the use
of chemicals
• Opportunity to
develop more
environmentally
sustainable products
(more durable
products and safer
chemicals)
• Risk of increasing
regulatory obligations
related to pollution
Environmental, Safety
and Quality Guideline,
Code of Conduct,
Supplier Code of
Conduct, Sustainable
Natural Rubber Policy
Nokian Tyres continuously improves
the quality, safety and environmental
friendliness of its products, services, and
processes.
Nokian Tyres commits to complying with
laws and regulations, and to environmental
responsibility, which includes but is not
limited to preserving air and soil quality.
Nokian Tyres is committed to creating
healthy and safe working conditions for all
individuals under the company's supervision.
Responsible chemical management is also
part of this work, including the pledge to
reduce or phase out hazardous substances.
Suppliers are expected, at the minimum, to
comply with all the applicable environmental
laws, regulations and environmental permits
and licenses in the countries where they
operate.
Nokian Tyres is committed to and expects
its suppliers to prevent air, water, and soil
contamination.
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E2-1 Pollution-management policies
Nokian Tyres is committed to environmental responsibility in its own
operations and in the value chain.
Nokian Tyres’ Code of Conduct reflects the company’s commitment
to continuously enhancing its products, functions, and production
facilities to minimize environmental impact. This includes preventing
pollution of the air, water, and soil and addressing environmental
effects throughout Nokian Tyres’ supply chain.
The Environmental, Safety, and Quality Guideline underscores
Nokian Tyres’ pledge to continually improve the quality, safety, and
environmental sustainability of its products, services, and processes,
considering the entire lifecycle of its products. The company aims
for efficiency, zero errors, and zero accidents across all operations to
safeguard both employees and the environment.
Nokian Tyres prioritizes stakeholder interests when setting and
updating policies. The Environmental, Safety, and Quality Guideline
received minor updates in the spring of 2024, consisting of small
additions and wording adjustments based on customer needs.
To uphold the guideline, Nokian Tyres commits to environmental
responsibility, which includes not only adhering to laws and regula-
tions but also preserving biodiversity and maintaining air and soil
quality. Responsible chemical management is a key part of this com-
mitment, with efforts to reduce or phase out hazardous substances.
Moreover, Nokian Tyres has numerous emergency plans in place to
control and mitigate impacts on people and the environment during
unexpected situations. The President and CEO is the most senior
executive accountable for the implementation of both the Code of
Conduct and the Environmental, Safety, and Quality guideline.
The Supplier Code of Conduct extends these responsibilities across
the value chain. Nokian Tyres expects its suppliers to minimize
negative impacts on local and surrounding communities, adopt a
precautionary approach to environmental challenges, and proactively
prevent environmental incidents. Suppliers must comply with all rele-
vant environmental laws, regulations, and permits in their operating
countries. The Supplier Code of Conduct also emphasizes continuous
improvement in environmental performance, including proper
handling, storage, and disposal of chemicals to protect employees
and the environment.
Nokian Tyres expects its suppliers to implement proper processes
and technologies to protect water quantity and quality, prevent
contamination from chemicals, and safeguard soil quality. Suppliers
are required to prepare for and respond to emergencies such as fires,
natural disasters, and chemical spills, with appropriate emergency
plans, evacuation procedures, hazard detection equipment, training,
and drills.
Nokian Tyres’ Sustainable Natural Rubber Policy addresses pollution
by committing to prevent air, water, and soil contamination. The
policy’s framework aligns with that of the Global Platform for
Sustainable Natural Rubber (GPSNR), an industry initiative focused on
promoting sustainability in the natural rubber supply chain.
The company’s Senior Vice President, Operation Excellence, who is
a member of the Management Team, is the most senior executive
accountable for the implementation of the Supplier Code of Conduct
and Sustainable Natural Rubber Policy.
All listed policies are available for the public on the Nokian Tyres
website.
Upholding international standards
Through the implementation of its Code of Conduct, Supplier Code
of Conduct, and Environmental, Safety, and Quality Guideline, Nokian
Tyres commits to the ten principles of the UN Global Compact.
Nokian Tyres’ Environmental, Safety, and Quality Guideline states
that Nokian Tyres’ operations are based on and fulfill the require-
ments of the ISO 14001 standard.
E2-2 Safeguarding chemical and
environmental safety
Nokian Tyres is committed to reducing pollution of air, water, and
soil, which includes the minimization of tire and road wear particles
(TRWP).
Ensuring chemical and environmental safety across all operations is a
key aspect of continuous sustainability efforts at the company. The
R&D department focuses on developing more sustainable products.
Environmental representatives and local working groups are dedi-
cated to enhancing daily sustainability practices. In Finland and the
US, environmental experts handle practical coordination and training,
covering areas such as chemical safety, emissions control, and waste
management.
Nokian Tyres documents the annual environmental impacts of its tire
factories and reports them to local authorities, as required in each
country. Feedback from, for example, affected communities and own
workforce is recorded in the company’s internal register, KETO, and
corrective actions are taken when necessary. Environmental experts
in Finland and the US are responsible for maintaining these records,
ensuring feedback on environmental aspects is addressed and
stakeholder concerns are considered.
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Annual environmental programs
The primary document guiding environmental protection efforts
at Nokian Tyres is the Integrated Management System Manual. In
collaboration with environmental experts, the Senior Manager of
Sustainability prepares an annual environmental program that sets
targets for the entire company. In addition, the program includes
specific targets for each tire factory with regard to pollutants, such
as volatile organic compounds (VOCs), for instance. The program
outlines detailed targets, actions, schedules, and assigned respon-
sibilities to achieve the strategic goals. In addition, individual units
undertake their own projects to develop operations and processes
further.
Managing dust, odor, and VOC emissions
Particle emissions result from processing powdery chemicals in the
compound mixing department. The mixing equipment is equipped
with effective ventilation and dust collection systems, and water
cleaners achieve separation rates exceeding 99 percent. At the
Finnish factory, particle emissions are measured using concentration
and pressure gauges, and external experts conduct regular concen-
tration measurements. At the tire factory in the US, air emissions are
calculated from the amount of raw materials used.
Particle concentrations at both factories have consistently remained
within permit limits. Dust that escapes the filter system primarily
causes aesthetic inconvenience and poses no significant environ-
mental or health risks. The amount of dust emissions was approxi-
mately 1.5 tons in the tire factory in Finland and 58.5 tons in the tire
factory in the US in 2024.
Surveys commissioned by Nokian Tyres indicate that odor emissions
are temporary. Droplet separators are used to reduce odors from
mastication, and the number of separate mastication processes has
been decreased to further minimize odors. The factories have also
implemented new odor control equipment that represents the best
available technology (BAT).
Solvents, or volatile organic compounds (VOCs) represent the
company’s most significant air emissions at the factory in Finland.
However, a 2022 spread modeling study estimated that VOC concen-
trations and their environmental effects are minimal.
Chemical operation supervisors' audits
Each year, two audits are conducted by chemical specialists focusing
on the use and storage of chemicals in Nokian Tyres' factories.
Chemical operation supervisors visit the factory to inspect the stor-
age and handling of chemicals. The inspection is used to verify com-
pliance with legislation. For example, whether the labels on chemical
packages are correct, storage locations are clean, leak control has
been arranged, potentially explosive atmospheres are appropriate,
and so on. A report is drawn up on the inspection and the production
departments define corrective actions for the deficiencies found.
Continuous R&D efforts for safer and more sustainable
raw materials
Product Development aims to create safer and more sustainable
products. Nokian Tyres is committed to reducing the use of harmful
substances to enhance occupational safety in production. The
company was the first in the industry to eliminate high-aromatic oils.
No auxiliary chemicals are used in Nokian Tyres’ factories without a
department-specific usage permit issued by the company’s chemical
control team. This practice ensures the consistent use of chemicals
throughout the company and prioritizes replacing harmful chemicals
with safer alternatives. Several ongoing projects are focused on
finding alternative raw materials to reduce harmful chemicals.
TRWP work and R&D
Tire and road wear particle (TRWP) generation and levels in the envi-
ronment are influenced not only by tire design but also by external
factors such as driving behavior, road and vehicle characteristics, and
weather. Addressing TRWP requires a holistic, science-based, and
stakeholder-driven approach.
The United Nations Economic Commission for Europe (UNECE) is
developing a test method to measure tire abrasion. Nokian Tyres, as
a full member of the European Tyre and Rim Technical Organisation
(ETRTO), is actively involved in global standardization efforts. ETRTO
is contributing to UNECE’s development of a tire abrasion test
method with the goal of creating a test that is repeatable, repro-
ducible, cost-effective, practical, and representative of real driving
conditions. This method will be open to worldwide use and suitable
for regulatory purposes.
In parallel with regulatory developments, Nokian Tyres is advancing
in-house testing capabilities to meet future requirements for durable
tires. The European Tyre and Rubber Manufacturers’ Association
(ETRMA) launched the multi-sectorial TRWP Platform in July 2018 to
build scientific knowledge and develop practical solutions for reduc-
ing environmental particle levels. Nokian Tyres actively contributes to
this initiative as a member of ETRMA.
Supplier requirements
Nokian Tyres mandates compliance from its suppliers through
the Supplier Code of Conduct and the Sustainable Natural Rubber
Sourcing Policy. For more information on policy-related actions in
the value chain, see the section Pollution-management policies.
Additionally, Nokian Tyres requires all chemical suppliers to provide
safety data sheets (SDS) that comply with current legislation before
chemicals are purchased. These SDSs are registered in a database
that is accessible to all employees.
E2-3 Targets related to pollution
In addressing pollution, prioritizing safety means using chemicals
responsibly and reducing tire and road wear particles, which are
classified as microplastics.
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Nokian Tyres has demonstrated industry leadership as the first
tire company to eliminate harmful high aromatic (HA) oils from its
tire compounds and the first to fully adopt low PAH content oils
in production. Polycyclic aromatic hydrocarbons (PAH) are a group
of chemicals that form during the incomplete burning of organic
substances. In tire manufacturing, PAHs can be found in certain oils
used as plasticizers or softeners in rubber compounds.
Microplastics
While no specific target exists for microplastics, the EU aims to
reduce microplastic releases by 30 percent by 2030. Euro 7, a new
emission standard expected in 2025, will set additional limits for
particulate emissions from brakes and tire wear, contributing to
the European Green Deal’s zero-pollution ambition. Nokian Tyres is
closely monitoring regulatory developments related to microplastics
and tire and road wear particles (TRWP).
Chemical use and control
Nokian Tyres aims to avoid the use of carcinogenic chemicals or Sub-
stances of Very High Concern (SVHC) as defined by the EU’s REACH
regulation in tire production. The target is voluntary but monitored
monthly. In 2024, Nokian Tyres' tires once again did not contain any
carcinogenic or SVHC chemicals.
There is no specific target for other substances of concern. However,
Nokian Tyres continuously works to improve the environmental
sustainability of its products, and finding alternatives for chemicals is
part of that work.
The control of chemicals ensures their safest possible use for
employees, the environment, and end users. Nokian Tyres complies
with European regulations – namely REACH and CLP – and local
legislation. No auxiliary chemicals are used at Nokian Tyres factories
without approval from the company’s chemical control team, which
issues usage permits for each department. This practice aims to
standardize chemical use across the company and replace harmful
chemicals with safer alternatives when possible.
Regarding chemicals, Nokian Tyres’ mid to long-term target is to
ensure chemical and environmental safety across all operations.
The ongoing target is to conduct two audits per year by chemical
specialists, focusing on the use and storage of chemicals at Nokian
Tyres' factories. In 2024, these audits were completed. Additionally,
the company met its target to ensure chemical and environmental
safety during the ramp-up phase of the factory in Romania during
the year.
VOC and particle emissions from chemical use
Solvents, or volatile organic compounds (VOCs), are among Nokian
Tyres’ most significant air emissions. Since VOC regulations are
country-specific, the calculation and reporting of VOC emissions vary
by location.
In Finland, VOC emissions are calculated according to the EU’s VOC
directive, which is based on the used solvents. Nokian Tyres’ ongoing
air pollution target is to reduce VOC emissions to less than 60
percent of the solvents used at its Finnish tire factory. The target is
mandatory, as the Finnish factory’s environmental permit limits the
total solvent emissions to 60 percent of the solvents used. VOCs
come from heavy tire assembly at the Finnish factory, and they are
collected and processed at a catalytic incineration plant. However,
capturing all solvent emissions from heavy tire production remains
challenging because the sources cannot be completely sealed to
ensure full collection and incineration. In 2024, the amount of VOC
emissions was approximately 40.6 tons (72% of the solvents used)
in the tire factory in Finland. Thus, the VOC-related target was not
achieved as the VOC emissions were not within environmental permit
limits.
In the US, VOC emissions are calculated, in accordance with local
legislation and the State-issued minor source air permit, using
established emission factors based on the quantity of raw mate-
rials processed. There is no specific facility-wide VOC limit; rather,
limits are set for individual processes within the facility. In 2024,
Nokian Tyres discovered that all VOCs were not accounted for in
the established emission factors and self-reported this error to
authorities. After recalculations with the new calculation method,
the total VOC emissions in 2024 were 34.7 tons, exceeding the air
permit limit. The recalculations also showed that the air permit limit
had been exceeded since 2021. In December, Nokian Tyres was issued
a technical Notice of Violation for the unaccounted VOC emissions.
The company has been cooperating with the local authorities to
update the calculation methods and applied for an updated minor
source air permit of the US factory.
For particle emissions from the Finnish factory, the target is a
maximum of 5 mg/m
3
after filters and droplet separators. At the US
factory, the goal is to operate within the limits set by air permits.
Both targets were achieved.
Water and soil emissions
Under normal operations, Nokian Tyres’ production does not cause
emissions to water or soil. However, emissions could occur during
incidents, such as chemical spills, which could significantly impact the
surrounding environment. Proactive measures are in place to prevent
such accidents. In 2024, no such incidents occurred, and the ongoing
goal is to prevent any accidental discharges from Nokian Tyres’
factories into water or soil.
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E2-4 Pollution of air, water and soil
Tire and road wear particles
While it is not possible to measure microplastics directly, tire and
road wear particles (TRWP) are a significant concern. The friction
between tires and the road, essential for driver safety, causes the
abrasion of both surfaces. This friction generates particles, a combi-
nation of tire tread fragments and road surface elements, commonly
classified as microplastics due to their size and composition.
TRWP levels in the environment are influenced not only by tire design
but also by external factors, such as driving behavior, road condi-
tions, vehicle characteristics, and weather. These combined factors
often have a greater impact on TRWP generation than tire design
alone. As a result, addressing TRWP requires a holistic, science-based,
and stakeholder-driven approach.
Currently, it is not possible to report tire abrasion for new type-ap-
proved tires until 2028, as there is no valid and official method in
place. However, measurement methods are under development at
both the United Nations Economic Commission for Europe (UNECE)
and ISO standardization levels. UNECE is a UN body that develops
international regulations for vehicle safety and environmental
standards, including those related to tire wear and emissions.
At the UNECE level, a new test method is being designed for type-ap-
proval of tires, likely using a unit of measurement expressed as mg/
km/t, which indicates the amount of tire emissions (in milligrams) per
kilometer, per tire, normalized by the mass of the vehicle. From this
measurement, an index will be calculated for the reference tire in the
test, serving as the basis for type-approval.
This upcoming regulation will apply to new type approvals for C1
(passenger car) tires in 2028, expanding to all C1 tires on the market
by 2030. For C2 (van) tires, the timeline is 2030 and 2032, and for
C3 (truck and bus) tires, it extends to 2032 and 2034. The same
schedule applies to the Euro 7 approval for vehicle tires.
Chemicals
In 2024, the tire factories used 116,687 tons of raw materials, and
released approximately 60 tons of particle emissions, primarily com-
posed of dust from used chemicals. The emissions are equivalent to
about 0.05 percent of the total raw materials used, making particle
emissions minimal.
E2-5 Substances of concern and substances of
very high concern
Nokian Tyres does not use carcinogenic chemicals or Substances
of Very High Concern (SVHC) as per the EU’s REACH regulation in
tire production. All Nokian Tyres’ products also meet the EU REACH
requirements concerning Polycyclic aromatic hydrocarbons (PAH).
The company is committed to ensuring that the products sold in
Vianor service centers, both now and in the future, are free from
harmful chemicals. Nokian Tyres’ products do not contain any
conflict minerals.
Nokian Tyres uses chemicals that are classified as hazardous to
health and chemicals classified as hazardous to both health and the
environment. Their amounts are presented in the following table.
It must be noted that during the vulcanization of tires chemical
reactions take place, and, consequently, some substances of concern
turn into other substances. Thus, in finished products the amount
of substances of concern is not as high as presented in the table.
In the future, the calculation method will be developed to take the
chemical reactions and their impact on the quantities of different
substances into consideration as well.
Substances of concern in 2024, main hazard classes
T
Health
hazards
Health and
environmental
hazards
Total amount of substances of
concern that are generated or
used during production or that are
procured 59.0 1,870.8
Total amount of substances of
concern that leave facilities as
emissions, as products, or as part
of products or services 59.0 1,870.8
Leave facilities as air emissions 0.2 7.6
Leave facilities as products 58.8 1,863.2
E2-6 Financial effects from material pollution-
related impacts, risks and opportunities
There were no significant operational expenditures or capital expen-
ditures related to major incidents or deposits in 2024.
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ENVIRONMENTAL INFORMATION
E4 Biodiversity and ecosystems
Material topic in
Nokian Tyres’ context
Impact, risk,
opportunity
Policy or work
instruction Management
Biodiversity and
ecosystems
• Negative biodiversity
impacts in raw
material sourcing
• Risk of increasing
regulation related to
deforestation and
other biodiversity-
related issues
Environmental, Safety
and Quality Guideline,
Code of Conduct,
Supplier Code of
Conduct, Sustainable
Natural Rubber Policy
Nokian Tyres commits to complying with
laws and regulations, and to environmental
responsibility, which includes but is not
limited to preserving biodiversity as well
as air and soil quality and to causing no
deforestation in our own operations.
Suppliers shall, at minimum, comply with
all the applicable environmental laws,
regulations and environmental permits
and licenses in the countries in which they
operate.
Nokian Tyres is committed to and expects
its suppliers to understand its impacts on
biodiversity and, as relevant, act to safeguard
biodiversity and surrounding ecosystems.
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E4-1 Tire manufacturing is dependent on
natural rubber
As a tire manufacturer, Nokian Tyres purchases significant amounts
of natural rubber, which is one of the main ingredients in tires
and thus an integral part of the company’s business. Nokian Tyres
material biodiversity impacts are indirect, as they occur in the
beginning of the value chain. There are biodiversity risks caused by
deforestation and land use change that mainly come from cultivation
of natural rubber.
As one of the cornerstones of Nokian Tyres’ strategy is to be a leader
in sustainability, the company is generally well prepared to address
sustainability-related material impacts, risks, and opportunities,
including those related to biodiversity. In 2023 and 2024 the com-
pany worked toward being compliant with the new EU Regulation on
Deforestation-free Products EUDR. Local and indigenous knowledge
and nature-based solutions have been incorporated into the EUDR
framework.
A separate assessment of the resilience of the current business
model and strategy to biodiversity and ecosystems-related physical,
transition and systemic risks has not been conducted yet.
SBM-3 Considering biodiversity-sensitive areas
The examination of natural diversity and the factors affecting it
started at the Finnish tire factory site and has since been extended
to the factory in the US and Romania, the test tracks, and the Vianor
service centers that are owned by Nokian Tyres. According to the
assessments, Nokian Tyres’ current operations have practically no
direct effects on biodiversity.
However, the start of operations, such as construction of factories
and other establishments in a certain area, has long-term effects
on the area’s original biodiversity. That is why the species, especially
endangered or otherwise protected species living in the operating
areas have been mapped.
Nokian Tyres has taken into account the requirements of the species
living in the vicinity of the company’s operating environments, and
the aim is to develop the company’s operations considering these
requirements. Potential affected threatened species nearby the tire
factory in Finland are the red-throated diver, asp and freshwater
pearl mussel.
During summer 2023, biodiversity risks in Nokian Tyres’ current
supply chain were assessed using the WWF’s biodiversity risk
filter. According to the assessment, the biggest and the broadest
biodiversity impacts in the raw material chain come from pollution,
deforestation, and land use change. In Nokian Tyres’ raw material
chain, natural rubber cultivation impacts biodiversity the most, as
the biodiversity risks caused by deforestation and land use change
mainly come from the cultivation of natural rubber.
In the assessment, the most important supplier locations and
industry sectors were prioritized based on how high their physical
versus reputational risk scores were. 32 sites were considered to
be most impactful on biodiversity. Of the 32 sites, 23 are natural
rubber farmers and manufacturers, three metal cord manufacturers,
two textile/belt manufacturers, one is an oil company, and one is
a chemical manufacturer. Regarding biodiversity risks, the most
important countries for Nokian Tyres are Indonesia and Malaysia.
Other stakeholders were not involved in the assessment. Nokian
Tyres performs sustainability on-site audits at high sustainability risk
suppliers’ sites. During the audits it is evaluated, among other topics,
whether the suppliers have performed biodiversity assessments in
their own operations and in their supply chains. If any shortcomings
are identified, Nokian Tyres requests mitigation actions from the
suppliers.
E4-2 Policies that address the preservation
of biodiversity
Nokian Tyres is committed to environmental responsibility in its own
operations and in the value chain. Nokian Tyres’ Code of Conduct
reflects the company’s commitment to continuously enhancing its
products, functions, and production facilities to minimize environ-
mental impact. This includes addressing environmental effects
throughout Nokian Tyres’ supply chain.
The Environmental, Safety, and Quality Guideline underscores Nokian
Tyres’ pledge to continually improve the quality, safety, and environ-
mental sustainability of its products, services, and processes. Nokian
Tyres is committed to preserving biodiversity as well as air and soil
quality and to causing no deforestation in its own operations, and to
setting targets to reduce environmental impacts. The Environmental,
Safety, and Quality Guideline received minor updates in the spring of
2024, consisting of small additions and wording adjustments based
on customer needs.
To uphold the guideline, Nokian Tyres commits to environmen-
tal responsibility, which includes not only adhering to laws and
regulations but also preserving biodiversity and maintaining air and
soil quality. The President and CEO is the most senior executive
accountable for the implementation of both the Code of Conduct
and the Environmental, Safety, and Quality Guideline.
The Supplier Code of Conduct extends these responsibilities across
the value chain. Nokian Tyres expects its suppliers to minimize
negative impacts on local and surrounding communities, adopt a
precautionary approach to environmental challenges, and proactively
prevent environmental incidents. Suppliers must comply with all rele-
vant environmental laws, regulations, and permits in their operating
countries. The Supplier Code also emphasizes continuous improve-
ment in environmental performance, including understanding its
impacts on biodiversity and, as relevant, act to safeguard biodiversity
and surrounding ecosystems.
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Nokian Tyres expects its suppliers to implement proper processes
and technologies to protect water quantity and quality, prevent
contamination from chemicals, and safeguard soil quality. Suppliers
are required to prepare for and respond to emergencies such as fires,
natural disasters, and chemical spills, with appropriate emergency
plans, evacuation procedures, hazard detection equipment, training,
and drills.
Protecting and improving biodiversity is an essential condition
for sustainable economic and human development. Nokian Tyres’
Sustainable Natural Rubber Policy expects its suppliers to share its
strive toward a natural rubber value chain that takes biodiversity
and healthy and functioning ecosystems into account. The policy’s
framework aligns with that of the Global Platform for Sustainable
Natural Rubber (GPSNR), an industry initiative focused on promoting
sustainability in the natural rubber supply chain.
The Sustainable Natural Rubber Policy includes eight major
components:
• Commitment to legal compliance
• Healthy functioning ecosystems
• Respecting human rights
• Community livelihoods
• Increased production efficiency
• Supply chain assessment and traceability
• Monitoring and reporting, and
• Driving effective implementation of all these components.
The company’s Senior Vice President, Operation Excellence, who is
a member of the Management Team, is the most senior executive
accountable for the implementation of the Supplier Code of Conduct
and Sustainable Natural Rubber Policy.
The policies do not address the social consequences of biodiversity
and ecosystems-related impacts.
Together these policies cover the biodiversity and ecosystem protec-
tion at operational sites owned, leased, or managed, and sustainable
land practices. They also address deforestation. All listed policies are
available for the public on the Nokian Tyres website.
To reduce the environmental burden of sea transport in its supply
chain, Nokian Tyres gave the Baltic Sea Action Group (BSAG) a Baltic
Sea commitment for the years 2023–2026. The commitment is
focused on cooperation in the BSAG’s Ship Waste Action initiative.
With the commitment, Nokian Tyres requires that the cargo ships
under direct shipping company contracts discharge wastewaters in
the reception facilities in Finnish ports. Nokian Tyres also advises the
forwarding agents to follow the same principle when handling the
company’s cargo. Ship Waste Action is one of the criteria influencing
the selection of freight carriers in freight tenders.
E4-3 Ensuring EUDR compliance to avoid
deforestation and increase traceability
The EU regulation 2023/1115, also known as the “Deforestation
regulation” or the "EUDR" intends to stop deforestation linked to
certain commodities that are imported to and produced or further
processed in the EU. The products are cattle, coffee, cocoa, oil palm
soy, wood and rubber, of which natural rubber is very relevant for
Nokian Tyres as it is one of main ingredients of tires.
In short, the regulation, among other things, obliges manufacturers
of tires such as Nokian Tyres to assure that tires shall not be placed
or made available on the market or exported, unless all the following
conditions are fulfilled:
• they are deforestation-free;
• they have been produced in accordance with the relevant
legislation of the country of production; and
• they are covered by a due diligence statement.
Ensuring EUDR compliance is complicated and requires a substantial
effort from Nokian Tyres, its suppliers, and customers. Since the
regulation entered into force in June of 2023, Nokian Tyres has, for
example:
• Started an internal task force project in fall 2023
• Reviewed its products that contain natural rubber
• Actively collaborated with its suppliers to ensure that the EUDR
requirements will be met
• Mapped the availability of EUDR-compliant natural rubber and
segregated those by assigning an EUDR code for them
• Reviewed its supply chain and production setup.
Nokian Tyres continues the work to ensure compliance with the EUDR
regulation.
No biodiversity offsets were used in Nokian Tyres’ action plans. Local
and indigenous knowledge and nature-based solutions have been
incorporated into the EUDR framework.
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Researching guayule, the European source of
natural rubber
Guayule-based natural rubber is one of the active initiatives that
Nokian Tyres has been working on for several years, targeting to
find an alternative for the natural rubber that the company uses.
As guayule originates from the desert, it can survive in very dry and
poor soil conditions. It is a plant that does not exploit areas of any
other vegetation or food production; on the contrary, it makes use
of wastelands. Currently Nokian Tyres participates in the MIDAS
research project that is related to the topic. There is more informa-
tion about Nokian Tyres’ work on guayule on the company website.
E4-4 Targeting for compliant suppliers and
a sustainable supply chain
In addition to working toward being compliant with the EUDR, Nokian
Tyres mitigates and prevents negative impacts on biodiversity with
the target that 100 percent of its natural rubber processor suppliers
are either GPSNR members or signed Nokian Tyres sustainability
commitment. This target serves as a mitigation and prevention
measure for negative biodiversity impacts, because the GPSNR
membership and signing Nokian Tyres sustainability commitment
both mean that the natural rubber processor is committed to
preserving biodiversity and operates in alignment with Nokian Tyres’
policies. The target is not based on scientific evidence, but instead
focuses on confirming that suppliers follow the policies related to
biodiversity impacts.
In 2024, the target was achieved as 100 percent of the natural
rubber processor suppliers are either GPSNR members or signed
Nokian Tyres sustainability commitment.
The most important countries for Nokian Tyres are Indonesia and
Malaysia. Mitigation hierarchy is avoidance. No ecological thresholds
were applied, and Nokian Tyres did not use biodiversity offsets in
setting its targets. Stakeholders were not directly involved in setting
the target, but the GPSNR members comprise several different
natural rubber stakeholders and thus their views are incorporated in
the GPSNR alignment as well.
Nokian Tyres sustainability audit model evaluates the suppliers’
alignment with Nokian Tyres Sustainable Natural Rubber Policy. The
follow-up audits are performed every third year at high sustainability
risk suppliers’ sites. The audit model tracks the effectiveness of the
company’s Sustainable Natural Rubber Policy.
Supply chain traceability remains a challenging topic in natural rubber
supply chains globally. As Nokian Tyres does not own any plantations,
the company needs to rely on its suppliers to trace the origins of the
rubber, and requiring a commitment from the suppliers to do so has
been possible. All sustainability critical raw material suppliers and
manufacturing partners need to adhere to Nokian Tyres’ Supplier
Code of Conduct, which includes safeguarding biodiversity and
surrounding ecosystems. Natural rubber suppliers additionally need
to commit to Nokian Tyres’ Sustainable Natural Rubber Policy or be
members of the GPSNR.
The new EUDR regulation forces many natural rubber supply chain
stakeholders to have traceability systems and traceability verification
systems in place. Nokian Tyres has two factories in Europe that are
affected by the EU Deforestation Regulation, and thus the company
is obligated to know the origins of its rubber that is imported into the
EU and to ensure the no-deforestation status of the sourced rubber.
Nokian Tyres has screened the EU’s Biodiversity Strategy to inform
its targets.
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ENVIRONMENTAL INFORMATION
E5 Resource use and circular economy
Material topic in
Nokian Tyres’ context
Impact, risk,
opportunity
Policy or work
instruction Management
Resource inflows,
including resource use
• Negative impacts
through the use of
virgin resources
• Risk of increasing
regulation on
materials (e.g.
traceability)
Supplier Code of
Conduct, Sustainable
Natural Rubber Policy,
Procurement Guideline,
Environmental, Safety,
and Quality Guideline
Nokian Tyres maintains its commitment
to increasing the share of renewable or
recycled materials in its tires to 50% by 2030.
Nokian Tyres is gradually integrating
renewable and recyclable raw materials into
its products while implementing extensive
product development and testing to ensure
the optimal combination of properties for tire
performance.
The company is committed to legal compliance,
community livelihoods, healthy, functioning
ecosystems, and respect for human rights in
natural rubber procurement and production,
aligning with the Global Platform for
Sustainable Natural Rubber (GPSNR).
Resource outflows
related to products
and services
• Negative impacts
caused by improper
management of end-
of-life tires
Environmental,
Safety, and Quality
Guideline, Sustainable
Natural Rubber Policy,
Procurement Guideline
Nokian Tyres takes into account the
product's entire life cycle and continues to
promote the collection and utilization of
end-of-life tires.
As one of the original founders of Finnish Tire
Recycling Ltd and as a member the U.S. Tire
Manufacturers Association Nokian Tyres is
involved in their work of looking for new ways
to recycle and utilize tires. All Nokian Tyres’
products (tires and wheels) are recyclable.
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E5-1 Driving responsible resource use and
circular economy
Nokian Tyres’ Environmental, Safety, and Quality Guideline states the
company’s promise to continuously improve the quality, safety and
environmental sustainability of its products, services, and processes,
considering the products’ entire life cycle. To fulfill that promise,
Nokian Tyres commits to environmental responsibility, which among
other things includes consuming and managing resources sustainably
and reducing waste. The company’s President and CEO has approved
the Environmental, Safety, and Quality Guideline and is accountable
for its implementation.
Even though waste is not a material topic, waste management is part
of circular economy. Effective waste utilization reduces the need for
virgin raw materials. Although Nokian Tyres’ policies do not explicitly
mention the waste hierarchy, its production processes adhere to it,
supported by comprehensive training materials and a detailed waste
flow diagram. For example, operations at the factories are focused
on increasing internal waste utilization.
Nokian Tyres is committed to increasing the share of renewable or
recycled raw materials in its tires to 50 percent by 2030. Nokian
Tyres’ internal principles for environmental stewardship, safety, and
quality – including chemical safety – are aligned with this target.
Furthermore, the company has introduced sustainability-related
goal setting in the product lifecycle process, which covers work
instructions for the new product development process.
Nokian Tyres is an active member of the U.S. Tire Manufacturers
Association (USTMA), participating in several working groups focused
on environmental protection, tire safety, chemical safety, and future
legislation. Through the company’s membership in the European
Tyre and Rubber Manufacturers' Association (ETRMA), Nokian Tyres is
involved in working groups that address similar themes.
As a member of the Global Platform for Sustainable Natural Rubber
(GPSNR), Nokian Tyres is committed to legal compliance, commu-
nity livelihoods, healthy, functioning ecosystems – including no
deforestation – and respecting all human rights in natural rubber
procurement and production. This is reflected in Nokian Tyres
Sustainable Natural Rubber Policy, which is aligned with the GPSNR’s
policy framework. In Nokian Tyres Management Team, the Senior Vice
President, Operation Excellence is accountable for the implementa-
tion of the policy.
Nokian Tyres’ tire materials and their alternatives
Material
% of a tire
(approximately) Sources Replacements and alternatives
Synthethic rubber 23 Crude oil • Polymers from renewable sources
• Mass-balance approach
• Recycled rubber crumbs
Natural rubber 22 Natural rubber • Guayule as an alternative for natural rubber
• Recycled rubber crumbs
Fillers 28 Silica, carbon
black
• More extensive use of recycled carbon black is under investigation
• Active research of different renewable fillers, for instance forest
industry's side stream-based materials
Reinforcement
materials
15 Steel, textile • Increasing the share of recycled steel in reinforcement materials is
being researched
• Researching the use of renewable or recycled sources for textiles
Chemicals 12 Several sources • Increasing renewable or recycled oil and resin content in tires
• Reduction and elimination of harmful chemicals and search of
alternative options from either recycled or renewable resources
E5-2 Optimizing the use of raw materials
Nokian Tyres utilizes high-quality raw materials that enhance both
the safety and performance of its tires. The technical quality and
safety of each product is ensured through rigorous testing and
analysis of every raw material used in manufacturing, along with
continuous improvements to rubber compounds.
Tires are made from approximately hundred different raw materials,
and sustainability is a key consideration in assessing their environ-
mental impact. Recycled and renewable materials are particularly
valued for their sustainability.
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Factory in Finland gained ISCC PLUS Certification
As a step toward the long-term target of increasing the share of
renewable or recycled raw materials in Nokian Tyres’ products to 50
percent by 2030, the factory in Nokia, Finland, obtained the Inter-
national Sustainability and Carbon Certification (ISCC) PLUS in 2024.
Through the certification, Nokian Tyres is able to introduce new ISCC
PLUS-certified raw materials in its tires. The company will introduce
the certified raw materials when new flagship products are launched.
The certification that Nokian Tyres received applies to the manu-
facturing of passenger car tires at the factory in Finland, and the
company is planning to get also other production sites certified
in the coming years. Using the certified materials is an important
step for Nokian Tyres in reaching one of its key sustainability goals.
Additionally, the certification makes it possible to trace the use of
certified raw materials from sustainable sources.
Researching recycled or renewable alternatives and
creating partnerships
Nokian Tyres already uses several raw materials either from recycled
or renewable resources in its tires. The use of new raw materials
requires a great deal of product development efforts and testing to
find the best combination of properties for a tire, as new raw materi-
als can modify the properties of compounds. All new alternative raw
materials from recycled and renewable sources used in commercial
products are purchased according to the Procurement Guideline, and
suppliers fulfill the Supplier Code of Conduct requirements.
There are several research programs ongoing for each tire material
category. New raw materials are primarily introduced through new
product launches, although not exclusively. The development of
high-performance and sustainable tires requires active collaboration
with raw material suppliers, research institutes, and other stakeholders.
Fillers, primarily carbon black and silica, constitute around 28 percent
of the raw materials in a tire. This suggests a significant potential
to increase the use of recycled or renewable materials by replacing
fossil-based fillers with those from recycled or renewable sources.
One example of a recycled filler is rubber retrieved from used tires.
Additionally, Nokian Tyres has extensively researched the use of recy-
cled carbon black in tire production. While securing and researching
various grades of recycled carbon black has been challenging, more
raw material providers have entered the market. Nokian Tyres is
actively pursuing multiple projects in this area.
To support in-house research activities, Nokian Tyres currently par-
ticipates in several other research projects. Among these is MIDAS, a
Horizon Europe Innovation Action that develops innovative solutions
to grow industrial crops on marginal agricultural land and build
sustainable value chains for bio-based products. Additionally, the
Polestar 0 project that Nokian Tyres participates in aims to eliminate
all greenhouse gas emissions from every aspect of the automotive
supply chain and production. Nokian Tyres continues actively search-
ing for new collaboration opportunities for the coming years.
In 2024, as part of varied efforts to increase the share of recycled
and renewable raw materials in its tires to 50 percent by 2030,
Nokian Tyres signed a long-term purchasing agreement with a tire
recycling joint venture. Formed by Antin Infrastructure Partners and
Scandinavian Enviro Systems, among others, the venture plans to
establish end-of-life tire recycling plants across Europe. The first
facility is expected to be fully operational in 2025, and the joint
venture’s deliveries of recycled carbon black to Nokian Tyres are
scheduled to begin in 2026.
The emissions from manufacturing recovered carbon black are
potentially over 90 percent lower than those from virgin carbon
blacks. On a larger scale, use of recovered carbon black also
increases circularity and sustainability in the tire industry.
Nokian Tyres’ development agreement with the Swedish biomaterial
science company Reselo AB seeks to further develop the renewable
material Reselo Rubber as a potential new raw material for tires.
Reselo Rubber is a completely renewable material made from birch
bark sourced from the residue of the global pulp, paper, and plywood
industry. Initial lab tests indicate that Reselo Rubber has strong
potential to replace traditional fossil-based materials in tires.
Nokian Tyres Green Step Ligna uses renewable
alternative to carbon black
In 2024, Nokian Tyres partnered with UPM, a leading biomaterials
production expert, to introduce Nokian Tyres Green Step Ligna,
the first concept tire made with a new renewable material with the
potential to replace a significant part of the fossil-based carbon
black currently used in tire production. The collaboration aims to
further increase sustainability in the tire industry.
Nokian Tyres Green Step Ligna uses an innovative material called
UPM BioMotion™ RFF, which offers a promising lignin-based alterna-
tive for traditional carbon black, reducing the need for fossil-based
materials. As a fully renewable material, it lowers carbon emissions in
tire manufacturing.
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Nokian Tyres is carefully evaluating the material's performance,
safety, and environmental impact compared to traditional carbon
black.
Tire retreading lowers tires’ carbon footprint
Nokian Tyres’ retreading units provide services for trucks, buses, and
heavy machinery. Retreading tires offers fleet operators signifi-
cant savings in costs, resources, and environmental impact, and a
quality tire carcass can be retreaded two to four times, reducing
tire costs by around 30 percent. This process also dramatically
lowers the carbon footprint: producing a new truck tire generates
approximately 220 kilograms of CO
2
e emissions, while retreading
produces only about 40 kilograms. Furthermore, each retread saves
40 kilograms of rubber and 70 liters of oil per tire, compared to
manufacturing new ones.
Advancing tire recycling
In Finland, tire recycling has reached 100 percent, ensuring that a
plentiful supply of raw materials is available for diverse recycled
material applications. Nokian Tyres is a founding member of the Finn-
ish Tyre Recycling initiative, whose new-generation circular economy
facility, inaugurated in Loppi, Finland, in 2023, enables the collection
and refinement of recycled materials for industrial use.
In mainland Europe, the recycling rate has been approximately 92
percent in recent years and in the US around 79 percent.
In 2024, Nokian Tyres achieved a 92 percent recycling rate for
the passenger car tires it sold. Fortunately for the environment,
discarded tires still retain value and can be utilized through reuse or
recycling. In alignment with the EU's sustainable development goals,
efforts are underway to increase the material recovery of used tires.
Nokian Tyres actively supports these initiatives as a member of Finn-
ish Tyre Recycling Ltd and the U.S. Tire Manufacturers Association
(USTMA), promoting the centralized collection and efficient reuse of
tires nationwide.
Managing waste
Nokian Tyres’ tire production and the company’s support functions
both generate waste. All production waste is weighed, and the
department-specific volumes are recorded on a daily basis. For other
types of waste, the volumes are monitored monthly.
All waste generated at the factories is sorted according to separate
waste management instructions. Scrap tires, or tires that do not
meet Nokian Tyres’ high standards of quality, are taken to recycling.
Non-vulcanized scrap rubber is generated in the production stages
preceding vulcanization or curing. Nokian Tyres' production units
have action plans to reduce the amount of non-vulcanised scrap
rubber and scrap tire generation. As the amounts of production
waste are monitored daily, the action plans are updated when
needed.
Waste is sorted and delivered for reuse whenever technologically and
economically feasible. The utilization rate of Nokian Tyres’ production
waste has been growing for years, and 2022 was the first year when
100 percent of the tire factories’ production waste was utilized and
there was no waste to landfill from tire production. The information
on waste disposal methods and quantities is provided by the waste
disposal contractors.
E5-3 Targeting to increase the share of recycled
or renewable raw materials and maximize waste
diversion
Nokian Tyres is committed to a voluntary target of increasing the
share of renewable or recycled raw materials used in its tires to
50 percent by 2030. The company has systematically followed its
roadmap toward these targets through monthly reporting. Key
sustainability KPIs are reported to the Management Team.
By supporting a circular economy, the use of recycled materials
not only conserves natural resources but also reduces the strain on
landfills. Increasing the share of renewable or recycled raw materials
further lessens the demand for primary raw materials in production.
For the year 2024, the company’s target was to introduce at least
one new raw material from the renewable and recycled category as
well as introduce at least one new ISCC PLUS-certified material into
use. Both of these targets were achieved when a new material from
renewable resources as well as ISCC PLUS-certified material was
taken into use in production during the year 2024.
To further support circular economy, Nokian Tyres aims to ensure
that 100 percent of tire production waste continues to be utilized,
with zero waste sent to landfill. This means that as a voluntary target
that exceeds legal requirements, the company strives to divert all
tire production waste away from landfills, either through prevention,
reuse, recycling, or recovery. In 2024, the target was again achieved.
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E5-4 Resource inflows
Respect for the environment is part of the company’s product
development philosophy.
In 2024, Nokian Tyres used a total of 145,835 tons of technical and
biological materials. When reporting biological materials, Nokian
Tyres refers to them as renewable materials.
Additionally, Nokian Tyres’ target of increasing the share of renew-
able and recycled raw materials to 50 percent by 2030 focuses on
external renewable or recycled feedstock, and not internal waste. In
2024, the share of recycled materials was 0.8 percent and renewable
raw materials was 24.2 percent in the company's own-produced tires.
Nokian Tyres uses direct measurements of the raw materials used
in product manufacturing to accurately calculate data on resource
inflows. Double counting is avoided by specified coding of each
material. Furthermore, the company aims to pay increasing attention
to environmental issues in the design of new products, starting from
ethical raw material procurement and extending to a well-functioning
recycling system.
E5-5 Closely monitoring resource outflows
Nokian Tyres closely monitors resource outflows in order to calculate
precise data on the key products and materials resulting from
its production processes. Monitoring includes actively tracking
production volumes by factory, in addition to any waste resulting
from manufacturing processes. As a result, all outflow data has been
sourced from direct measurements from the production units. All
Nokian Tyres products – tires and retreading materials, disc wheel
rims, and steel structures – are recyclable.
There is no source for industry average values related to mileage
and other factors related to expected durability of products. A test
method for measuring tire abrasion is currently being developed at
both the United Nations Economic Commission for Europe (UNECE)
and ISO standardization levels (see topic "Pollution"). Because it is
not possible to compare the expected durability of Nokian Tyres
products to the industry average for each product group, such
comparisons are not reported.
Repairability and remanufacturability of
Nokian Tyres products
Punctures in tires’ tread can be repaired under certain conditions,
depending on damage location, its size, and the overall condition of
the tire. However, tire safety must remain top priority, and it must be
ensured after the repair.
Retreading tires is a common practice for heavy machinery, including
bus and truck tires, helping to prolong the tire’s service life while
saving costs and the environment. In Nordic countries, the majority
of truck and bus tires are retreaded after they have been worn in
use. Therefore, tire retreading is an integral part of the whole tire
management process and a smart way to give a new tread life to
worn tires.
With carefully developed and optimized tire retreading processes
and materials, bus and truck tires can be given a second, a third, or
even a fourth lease on life. Retreaded tires are also a safe alternative
for buying new tires, as the whole process is strictly controlled by
legislation and the authorities. Therefore, a retreaded tire is compa-
rable to a brand-new one.
In tire retreading, the tread of an old tire is removed, after which
a new, safe tread is attached to the tire, which will again last for its
next service life. The tire frame gives the tire its shape and makes it
sturdy and suitably flexible. The old tire frame can be retreaded, even
if its tread has worn out.
Tire retreading requires high-quality tires so that the tread of
the old tire can be replaced with a new one. Thanks to high-quality
tire frames, the same tires can be covered several times during their
use. By retreading the same tire several times, it can be driven up to
a million kilometers.
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Nokian Tyres’ principles in all
operations are fair treatment
and respect of human rights when
collaborating with its employees
and other stakeholders.
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Social
information
S1 Own workforce 95
S2 Workers in the value chain 108
S4 Consumers and end users 115
General information
Environmental information
Social information
Governance information
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SOCIAL INFORMATION
S1 Own workforce
Material topic in
Nokian Tyres’ context
Impact, risk,
opportunity
Policy or work
instruction Management
Health, safety and
well-being
• Positive impacts
through improved
employee health,
well-being, and
motivation
• Adverse impacts on
employee health,
well-being and
motivation
• Adverse impacts on
employee safety
• Opportunity of
an attractive
employer brand
through outstanding
employee well-
being and working
environment
Code of Conduct,
Nokian Tyres’ Safety
Management Model,
Environmental, Safety,
and Quality Guideline
Nokian Tyres’ goal is to ensure a safe
working environment and create working
conditions that preserve physical and
mental health and promote workplace
well-being.
Occupational health, safety, and well-being
are integral parts of the company’s daily
management.
Everyone at Nokian Tyres is responsible for
making sure employees and others affected
by the company’s work are safe.
Nokian Tyres’ activities emphasize the
prevention of occupational accidents in order
to avoid hazardous situations.
All employees are entitled to family-related
leave through social policy and/or collective
bargaining agreements.
Nokian Tyres’ Code of Conduct gives
guidance on matters that affect employee
well-being, including equality, working
conditions, participation, and terms of
employment.
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SBM-3 A committed team enables
strategy execution
Nokian Tyres’ goal is to be a globally attractive employer known for
its sustainability, leadership, and international working community.
At the end of 2024, the company employed a total of 3,810 (+11%)
employees with different skills and backgrounds. These included
employees on extended leaves of absence. Nokian Tyres’ workforce is
located primarily in Finland, the US, Norway, and Sweden.
Nokian Tyres manufactures tires in Nokia, Finland, Dayton, US, and
Oradea, Romania. It also operates sales organizations in key markets
across the Nordic countries, Central Europe, and North America. The
execution of the company’s growth strategy includes the commis-
sioning of the new production facility in Romania. The recruitment
of some 550 employees for the tire factory moved forward in 2024,
and the factory, which combines people and automatic processes,
was inaugurated during the year. Tire deliveries will begin in 2025. At
the end of 2024, the company employed a total of 274 employees in
Romania. In 2024, Nokian Tyres also completed the ramp-up of the
US factory and a new finished goods warehouse was opened there.
Nokian Tyres began tire production at the US factory in 2020 and has
since expanded the operations by increasing production capacity,
growing the team to approximately 500 employees.
Nokian Tyres’ products are sold via tire stores, car dealerships, and
Vianor, Nokian Tyres’ tire and car service chain. There are two tire
changing seasons in a year when the headcount increases tempo-
rarily by approximately 500–700 employees. During 2024, a total of
1,350 seasonal employees were employed in the Nordics at Vianor.
By the end of 2024, there were 342 non-employees, the majority of
whom (225) were employed through private employment agencies in
production roles at the Finnish tire factory. The term non-employees
refers to individuals who are not direct employees of the organiza-
tion but whose work is managed and overseen by the company.
Material topic in
Nokian Tyres’ context
Impact, risk,
opportunity
Policy or work
instruction Management
Working conditions • Positive impacts by
offering secure work
and fair working
conditions
Code of Conduct,
Total Rewards
Philosophy and
Guideline
Nokian Tyres respects the freedom of association and
the freedom of workers to organize.
Active participation at different levels of the
organization and respecting the right of participation is
part of the company’s working culture.
The company complies with local legislation and
regulations relating to working hours and overtime work.
Contracts of employment are drawn up in writing and in
adherence with the local legislation.
Nokian Tyres will never pay anyone less than the minimum
wage defined in the local legislation.
Training and equal
opportunities
• Opportunity of
a competitive
advantage and
improved innovation
capabilities through
competent workforce
• Positive impacts from
improved skills and
career development
of employees
• Positive impacts from
improved health, well-
being and motivation,
improved company
culture and employer
reputation through
inclusivity and
equality
People Review, Code
of Conduct, Total
Rewards Philosophy
and Guideline
Employees own their development and career, while
managers support them by providing resources and
learning opportunities where possible.
Development planning, as part of the People Review
process, can occur with goal-setting discussions or
separately.
The manager and employee review future competence
needs, current strengths, and career aspirations.
Together, they define development actions using the
70–20–10 model.
Nokian Tyres respects human rights, treats all individuals
equally, and values diversity. The company does not
tolerate any form of discrimination, harassment, or
bullying in the workplace.
Everyone is responsible for acting fairly and fostering
a positive, inspiring work environment. While every
individual has the freedom of expression, they are also
accountable for how they express themselves.
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People topics are integral to Nokian Tyres’ strategy
People-related topics are integral to the planning and implementa-
tion of Nokian Tyres' strategy. One of the five cornerstones of the
company’s strategy is the Nokian Tyres Team, reflecting a strong
commitment to the workforce. For that reason, material impacts and
opportunities are closely aligned with the company’s strategy.
Nokian Tyres relies on the competence, motivation, and well-being
of its employees to succeed. Global people processes are designed
to support the company’s strategic goals, with a strong Nokian Tyres
Team serving as a cornerstone of that strategy. This applies to all
impacts, risks, and opportunities related to its own workforce.
Nokian Tyres’ adverse impacts on employee health, well-being,
motivation, and safety are not widespread or systemic. Instead, they
are limited to individual cases, such as accidents. Factory operators
and Vianor service center mechanics may be at greater risk of harm
in these cases.
In contrast, the company’s positive impacts – such as secure
employment, fair working conditions, improved employee health and
motivation, skills development, career growth, and a strong company
culture – primarily benefit its own employees but may also positively
affect non-employees.
Opportunities like building an attractive employer brand through
exceptional employee well-being and a supportive working environ-
ment, as well as gaining a competitive edge and enhanced innovation
through a highly skilled workforce, stem from these positive impacts.
These opportunities are generally tied to the company’s own
workforce. No specific groups of employees were found to be at
heightened risk of harm in the double materiality assessment, and
neither the impacts nor opportunities are related to any particular
groups. Nokian Tyres has not identified any material impacts on
workers arising from its transition plans aimed at reducing negative
environmental impacts and achieving greener, climate-neutral
operations.
S1-1 Policies related to own workforce
Among Nokian Tyres’ key sustainability initiatives are advancing the
safety and well-being of employees and protecting human rights in
the supply chain. In addition to honoring the ethical principles pre-
sented in Nokian Tyres Code of Conduct, the company is committed
to acting in the manner required by the UN’s Guiding Principles for
Business and Human Rights, and to following the International Labour
Organization’s (ILO) Declaration on Fundamental Principles and Rights
at Work. Nokian Tyres is a supporting member of the UN’s Global
Compact initiative, and the company follows its ethical principles.
In 2023, Nokian Tyres carried out a human rights impact assessment
where the main focus was on its own personnel and planned mea-
sures to minimize risks and impacts. Also, Nokian Tyres has defined
a human rights due diligence (HRDD) process. If any impacts are
identified, they are measured and needed actions are taken.
In addition to respecting human rights, the organization commits
to treating all individuals equally. Nokian Tyres' team is one of the
cornerstones of the company's strategy. The company’s success is
built on collaboration, inviting diverse perspectives, and achieving
things together.
Nokian Tyres’ Code of Conduct
Nokian Tyres’ Code of Conduct requires all employees to adhere to
the company’s zero tolerance policy for forced labor, human traf-
ficking, or child labor. Employment contracts are drawn up in writing
and in adherence with the local legislation. The company complies
with local legislation and regulations relating to working hours and
overtime work. Furthermore, Nokian Tyres will never pay anyone less
than the minimum wage defined in the local legislation.
If an employee discovers or suspects conduct that violates
the company's business principles, they should report it through
Nokian Tyres' whistleblowing channel. Alternatively, they may
report it directly to the General Counsel, CFO, and/or Head of HR.
Nokian Tyres’ Code of Conduct was updated in 2024. Every
employee must adhere to the Code of Conduct, and the highest
authority responsible for its implementation is Nokian Tyres’
President and CEO.
The company provides training on the Code of Conduct for all per-
sonnel, which is included in the induction of new employees. At the
end of 2024, 78 percent of personnel had completed the training.
Regarding the topic of Own Workforce, the updates to the Code
of Conduct aim for more clarity and comprehensiveness. In 2024,
new material topics of well-being and skill and career development
were introduced, while considerations around equality were further
expanded to ensure even greater inclusivity.
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Nokian Tyres’ principles are outlined in the Code of Conduct as follows:
EQUALITY
• We respect human rights, value diversity and treat all individuals
equally and with respect.
• We do not tolerate harassment, bullying or discrimination on the
basis of any characteristics such as race, ethnicity, color, sexual
orientation, gender, gender identity, disability, age, religion,
political opinion, union membership, national or social origin, etc.
• Everyone is responsible for acting fairly and creating a pleasant,
inspiring work atmosphere. Everyone has the freedom of
expression, but everyone is also responsible for their own
expression.
• In our activities, we promote equal development and learning
opportunities for our employees to strengthen their skills and
advance their careers.
WORKING CONDITIONS
• Our goal is to ensure a safe working environment and create
working conditions that preserve physical and mental health and
promote workplace well-being.
• Occupational health, safety and well-being are integral part of
our daily management.
• Everyone is responsible making sure that both our employees and
other affected by our work are safe.
• In our activities, we emphasize the prevention of occupational
accidents in order to avoid hazardous situations.
PARTICIPATION AND TERMS OF EMPLOYMENT
• Active participation at different levels of the organization and
respecting the right of participation are parts of Nokian Tyres’
working culture. The company respects the freedom of associ-
ation and the freedom of workers to organize.
• We have zero tolerance for forced labor, human trafficking, or
child labor. Employment contracts are drawn up in writing and
in adherence with the local legislation. We comply with local
legislation and regulations relating to working hours and overtime
work. Nokian Tyres will never pay anyone less than the minimum
wage defined in the local legislation.
Additionally, the company provides more detailed guidelines and
procedures regarding safety, well-being, travel, induction, perfor-
mance management, competence development, rewards, human
rights, and equality.
Environmental, Safety, and Quality Guideline
Nokian Tyres’ Environmental, Safety, and Quality Guideline states
that the company is committed to creating healthy and safe working
conditions. Every employee is responsible for identifying dangers
in the working environment and minimizing risks. Supervisors
are accountable for carrying out job related risk assessments in
cooperation with team members. In this way, the company strives
toward efficiency, zero errors, and zero accidents in all operating
areas, to protect both the employees and the environment. The
highest authority accountable for its implementation is Nokian Tyres’
President and CEO.
Nokian Tyres’ Safety Management Model
Nokian Tyres’ Safety Management Model serves as the company’s
workplace accident prevention policy and management system.
It describes the company mindset for safety work that all Nokian
Tyres’ employees must maintain and sets the bar for common
practices. This global model is implemented as part of local practices,
procedures and everyday decision making. Nokian Tyres’ Safety
Management Model also provides tools for continuous improvement
for departments and operations.
Nokian Tyres’ departments assess their own safety work, and based
on these self-assessments, identify their maturity level and needs for
improvement. Each department can focus on the safety aspects that
they have identified to be the most relevant for them. The Safety
Management Model and the evaluation practice emphasize the
departments’ ownership on safety improvements.
In addition, the 16 standards listed below each have a clear purpose,
a defined toolset, and a specific Nokian Tyres approach to the topic:
1. Leadership, Commitment and Responsibilities
2. Planning, Goals and Targets
3. Employee Engagement
4. Safety Risk and Opportunity Management
5. Legal Safety Requirements and Other Commitments
6. Safety Training, Competency and Awareness
7. Behavior and Observation
8. Employee Safety Communication
9. Monitoring and Measurement
10. Accident/Incident Reporting and Investigation
11. Workplace Inspections and Audits
12. Emergency Preparedness and Response
13. Contractor Selection and Management
14. Management of Change
15. Preventative and Corrective Actions
16. Other Operational Procedures
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Commitments to international standards
Nokian Tyres is committed to acting in the manner required by
the UN’s Guiding Principles for Business and Human Rights as well
as OECD’s Guiding Principles on Labour and Human Rights, and to
following the International Labour Organization’s (ILO) Declaration on
Fundamental Principles and Rights at Work.
The essential standards of the company include ISO 45001, the UN
Global Compact, Nokian Tyres’ policies and procedures related to
safety, well-being, hiring, traveling, induction, people reviews and
competence development, rewards, human rights, and equality.
Equal treatment and respect for human rights
Nokian Tyres respects human rights and treats all individuals equally.
Advancing the safety and well-being of employees and protecting
human rights in the supply chain are among the company’s key
sustainability initiatives. The company’s principles in all operations
are fair treatment and respect of human rights when collaborating
with personnel or other stakeholders. This principle of equality and
non-discrimination is an essential part of the Nokian Tyres’ opera-
tions, and the management of diversity is based on the concept of
equality and equal prerequisites for work.
Nokian Tyres’ Total Rewards Philosophy and Guideline
Nokian Tyres' Total Rewards Philosophy and Guideline was reviewed
and updated following the adoption of the Remuneration Policy at
the April 2024 Annual General Meeting. Decisions on rewards follow
globally consistent guidelines designed to ensure fair and equal
treatment of employees while allowing local adjustments to remain
competitive and attract top talent. They are based on performance,
position evaluation, consistent goal setting, and benchmarking of
rewarding practices in relevant markets as well as applicable laws and
collective agreements.
Training and skills development
Learning at Nokian Tyres is based on the following principles:
• Integrating learning with business targets, for example, with
‘on-demand’ learning
• Making full use of digital tools
• Offering modular learning solutions to pick up and choose
needed learning content and method
• Opportunities to combine common and personalized learning
paths
• Piloting new ways of learning together, such as learning circles
and peer coaching
• Enabling learning that is independent of time and space, including
mobile and on-the-go
• Moving away from traditional classroom training
Nokian Tyres’ people development philosophy is included in the
company’s People Review instruction. The development philosophy
supports employees’ development with internal job rotation, on-the-
job learning, and various development solutions.
All relevant company policies are available on the Nokian Tyres
intranet. Key stakeholders, including Management Team members,
have the opportunity to provide input on policy and guideline drafts.
Additionally, open dialogue with leaders and employees ensures
that all interests are considered in the policy development process.
Nokian Tyres’ e-learning management system supports the company
in policy implementation.
S1-2 Engaging with own workforce and workers’
representatives about impacts
Nokian Tyres employees contribute to the company’s ongoing devel-
opment with their skills and ideas, aligned with the organization’s
commitment to sustainable business practices.
To share information on financial performance, business develop-
ment, safety, strategy, vision, values, and other key topics, Nokian
Tyres hosts various employee events. During these events, employ-
ees are encouraged to voice their comments, questions, or concerns.
Employee engagement at Nokian Tyres is assessed annually through
the Drive! personnel engagement survey, which measures well-being,
equality, inclusion, and overall engagement within the organization.
The Drive! engagement survey was conducted for all employees in
September 2024. The survey included 19 questions and one open-
ended question. The response rate was 78 percent (79) being above
the global benchmark, which is 75 percent. The overall engagement
score was 72 (73) on a scale of 0–100 (global benchmark value 75).
Of the responses to engagement questions, 71 percent (72) were
positive (4 or 5 on a scale of 1–5).
The first assessment of diversity, equality, and inclusion was
conducted in the 2021 Drive! engagement survey. This measurement
is now repeated annually, using three targeted questions. The table
below shows the scores, comparison to previous year, and global
benchmarks for these questions.
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Drive! Engagement survey: Inclusion, diversity, and equality
Question
2024 score
on a scale of
0–100 Vs. 2023
Vs. external
global
benchmark
I feel a sense of
belonging at our
company 69 0 -4
Diverse
perspectives are
valued at our
company 63 0 -10
Regardless of
background,
everyone at our
company has an
equal opportunity
to succeed 67 0 -7
Drive! engagement survey results are reviewed within teams, and
action plans are collaboratively developed. Training resources for
managers on facilitating these discussions are available globally.
Multiple channels, such as Nokian Tyres’ intranet, Microsoft Teams,
Viva Engage, and both virtual and in-person meetings, seek to
ensure that employees are well informed about relevant company
developments. The channels also provide opportunities for feedback
and engagement.
Additionally, the KETO safety reporting tool enables employees to
participate in safety initiatives, and everyone has access to it. The
tool is used to log all accidents, incidents, and safety actions, as well
as to investigate and manage safety-related tasks. Job-related risk
assessments are also managed in KETO.
In the Nordic countries, local management and HR hold regular meet-
ings with workers’ representatives. The frequency of those meetings
varies based on the country and legal company. No formal employee
representatives are enacted in Central Europe due to the small size
of operations, with a low number of employees in each country, the
setup of the regional operations and local legislations. Also in North
America, Nokian Tyres works directly with its own workforce.
Nokian Tyres’ Senior Vice President of Human Resources has
operational responsibility for ensuring that engagement takes place.
The company also organizes regular annual and quarterly events, and
more are organized on a needs basis to support further engagement.
All employees participate in People Review discussions, which focus
on managing performance and employees’ personal development.
Internal job rotation, on-the-job learning, and other learning solu-
tions have a key role in supporting employee development.
S1-3 Processes to remediate negative impacts
and channels to raise concerns
Nokian Tyres’ business is guided by the ethical principles presented in
its Code of Conduct. Nokian Tyres has processes in place to provide
for or cooperate in the remediation of negative impacts on people
in its own workforce that the business relates to, as well as channels
available to its own workforce to raise concerns and have them
addressed. Examples of these are one-on-one discussions, and the
company’s healthcare system, which help to prevent and remediate
negative impacts.
Mandatory training is provided to all personnel on the Code of
Conduct. The training is included in the induction of new employees.
The completion rate in 2024 was 78 percent.
The Code of Conduct is available on the company website at
company.nokiantyres.com/sustainability/responsible-business/
corporate-culture-and-business-conduct/code-of-conduct/.
Policies protecting individuals who use channels to raise concerns or
needs against retaliation are in place as part of Nokian Tyres’ Code
of Conduct.
If an employee discovers or suspects a conduct that violates the
company's business principles, including the Code of Conduct or Pri-
vacy Policy, they should report their concerns through Nokian Tyres'
whistleblowing channel. Alternatively, they may report it directly
to the General Counsel, CFO, and/or Head of HR. Every employee
has direct access to the channel through the company website or
intranet, and information about the channel is also available as part
of Nokian Tyres’ Code of Conduct and Whistleblowing Policy.
According to an internal communications survey, Nokian Tyres’
employees feel that they can talk openly about the development of
work or related concerns, as well as possible mistakes or failures. So
far, the survey has been conducted in 2023 and 2024, and the score
concerning this question improved by one percentage point.
In 2024, the Legal function coordinated the whistleblowing process
and related investigations. All material findings and general statistics
were reported to the Audit Committee and the People and Sustain-
ability Committee of the Board of Directors.
All whistleblowers are protected against any form of retaliation.
Anonymous reports are treated with the same level or importance as
named reports.
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S1-4 Taking action on material impacts on
own workforce
To address material impacts and seize opportunities related to its
workforce, Nokian Tyres conducts various initiatives including train-
ing, audits, and an annual people process and engagement survey.
The management of material impacts on Nokian Tyres’ workforce is
led by the HR and safety functions, and all supervisors are respon-
sible for managing the impacts and implementing actions that are
relevant for their teams.
Nokian Tyres is committed to continuous development and supports
employees in strengthening their competencies and excelling in
their roles. Learning is encouraged through various projects and
collaboration, with internal job rotation providing possibilities to work
across different tasks and functions.
The company's employee development program emphasizes internal
job rotation, on-the-job learning, and diverse development solutions.
It follows the 70–20–10 principle: 70 percent of growth comes from
on-the-job experience, 20 percent from learning from others, and 10
percent from formal training.
Digitalization offers access to online learning, including external
resources such as webcasts, podcasts, and professional forums.
Learning is increasingly mobile and flexible, independent of time
and location. The company's updated eLearning platform further
supports these advancements.
In 2023, the company’s e-learning management system was
upgraded, enabling the integration of materials in various formats. A
team of employees was trained to develop online courses tailored to
business needs. The course composer and improved user interface
make it easier to create and implement internal eLearning courses.
New courses have been introduced offering training on topics such
as, safety, sustainability, procurement, data protection, and more.
Encouraging employee engagement
In 2024, the company’s actions included a survey related to internal
communications, defining Nokian Tyres’ human rights due diligence
process, and enabling employee participation in strategic planning.
As part of the strategy process employees were invited to discuss
how the company will succeed going forward. Facilitated discussions
were held during November and were open for all employees.
In 2024, Nokian Tyres also piloted Leadership Growth Track, a training
program for new managers. Leadership Growth Track aims to enable
participants to develop their self-awareness and cultivate a growth
mindset through shared learning sessions, individual development
plans, and peer support. This is an example of an initiative which aims
to prevent adverse impacts on employee motivation, but primarily
deliver positive impact through improved motivation, skills and
career development opportunities.
Total Rewards Philosophy and Guideline emphasizes
equity and fairness
Nokian Tyres' Total Rewards Philosophy and Guideline aims to clarify
the principles behind total rewards and support managers in making
fair and consistent pay decisions. By fostering transparency, employ-
ees can better understand the company’s rewards system, which
helps to promote motivation and engagement. In the coming year,
the focus will be on reward training to enhance understanding across
the organization, further contributing to equitable and fair working
conditions for the whole organization.
Actively promoting occupational health and safety
Nokian Tyres is committed to actively promoting employee health
and well-being, thus preventing any material negative impacts. For
instance, the company continually refines its Safety Management
Model procedures to avoid and mitigate any adverse impacts on
employee safety. Additionally, through partner companies in the
health care sector, Nokian Tyres provides comprehensive occupa-
tional health services to all employees. This enables the company to
proactively prevent and mitigate risks, while providing remedies if
issues arise.
All accidents and incidents must be reported in the common report-
ing tool (KETO) by the next business day. Every accident requires
a thorough investigation to prevent similar incidents and enhance
working environments.
It is the responsibility of the involved manager to report and
investigate accidents. Major accidents are communicated internally
across locations, production units, and functions. The causes and
corrective actions are reviewed to identify common risks and share
best practices.
Job-related risk assessments and safety actions are essential for
understanding actual risks in the working environment. A careful
analysis of these safety measures can proactively prevent future
accidents.
Employees are encouraged to make safety observations and carry
out safety actions with the goal of five safety actions per employee
on average.
Safety has also been a core focus of Nokian Tyres’ operations in the
new factory in Oradea, Romania from the outset, with the com-
pany's safety culture being gradually integrated into all functions.
Safety leadership training for managers and supervisors has been
implemented to empower teams to take ownership and lead in
safety practices. Additionally, the common safety reporting tool,
KETO, has been introduced at Oradea to support the development of
occupational safety.
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Nokian Tyres' occupational safety development work is guided by a
safety roadmap, which defines the key development targets for the
next few years. The roadmap covers the entire company, each loca-
tion and all functions. The development work aims to develop safety
culture, improve safety maturity, and increase the participation of
personnel and stakeholders in the safety development work. The
roadmap and the development projects specified in it are regularly
monitored by the Management Team and other relevant groups
and teams.
Further actions enhancing employee well-being
To enhance employee well-being, the company is focusing on devel-
oping leadership, defining a human rights approach, and continuously
promoting a culture of equal opportunities. Other measures included
reviewing Nokian Tyres’ Human Rights Commitment and defining and
describing the due diligence process.
The company monitors the effectiveness of its initiatives through its
annual employee survey. In 2024, the survey included 19 questions,
with two new items added with a focus on well-being, as well as one
open-ended question. All employees with a company email address
receive invitations to participate from Nokian Tyres’ external partner.
Those working in production or at Vianor can also respond via a QR
code or link available on Entire, the company intranet. All responses
are anonymous and confidential, and teams then discuss the findings
and agree on the actions they will commit to.
Nokian Tyres also focuses on reviewing people processes and
enhancing its eLearning platform and communications. The annual
employee survey action planning process and active dialogue with
employees and their representatives allow the company to identify
necessary and appropriate actions to address actual or potential
negative impacts on the workforce. Through people processes, such
as performance reviews and one-on-one discussions, line managers
monitor and respond to impacts on Nokian Tyres’ employees.
Hybrid working model supports employee well-being
In 2024, the company maintained its hybrid working model, with full
support from the Management Team. This includes flexible hours and
work arrangements whenever possible. The company adheres to local
laws regarding flexible hours, part-time options, and paid parental
and family leave. A modern work environment, equipped with
digital tools, enables teams to organize work flexibly and supports
employee well-being. Teams have also collaborated to establish the
best working practices.
S1-5 Targets related to material impacts,
risks and opportunities
In setting targets, Nokian Tyres engages directly with its own work-
force by involving employees and workforce representatives in active
dialogue. Other channels for involving employees in target setting
and monitoring progress include the Drive! Engagement Survey
and sustainability steering group, Työsuojelutoimikunta (Nokia) or
Occupational Safety Committee. Nokian Tyres’ management sets
specific goals, monitors their implementation, and reserves sufficient
resources to meet and maintain them.
Nokian Tyres informs employees about performance by organizing
yearly sustainability info sessions, quarterly employee info sessions,
management and team meetings, sustainability steering groups, and
other follow-up mechanisms based on projects.
The company pursues ambitious non-financial targets which are
embedded throughout its core operations. In April 2023, the Board
reconfirmed six non-financial targets. Those concerning Nokian
Tyres’ own workforce included decreasing the accident frequency
as well as developing personnel well-being. In addition, in early 2025,
Nokian Tyres launched new targets stemming from the double mate-
riality assessment. The purpose of the targets is to aid the company
in managing material impacts, risks, and opportunities related to its
own workforce.
Nokian Tyres’ own workforce and workforce representatives
were engaged directly in setting safety-related targets, tracking
performance against them, and identifying lessons or improvements
as result of the company’s performance through safety committees
and the KETO safety reporting tool.
Targets related to Nokian Tyres’ workforce
• Increase manager’s competence on Nokian Tyres’ rewarding
guidelines and practices. Measured through training attendance,
targeting for over 60 percent attendance of all managers in 2025
• Improve job rotation, such as percentage of transfers and promo-
tions, base to be measured 2025
• Continuous improvement of the sentiment of equal oppor-
tunities, related to Drive! survey question “Regardless of
background, everyone at our company has an equal opportunity
to succeed, baseline 2021: 65 – result in 2024: 67
• Decrease lost-time incident frequency (LTIF) from 8.3 (2018) to 1.5
by 2025
In 2024, the group-wide LTIF improved to 4.6 (4.7). Unfortunately,
the LTIF target was not met. Especially the increased number of
employees in the newer tire factories and several incidents in Vianor
affected the incident rate.
However, the total recordable injury frequency improved from 12.0 to
11.3. Safety actions per person achieved the targeted level of 5.0 (4.6).
The volume of safety actions improved with around 3,000 pieces
achieving the level of totally over 21,000 pieces. The wheel factory in
Finland achieved more than 500 days without any incidents.
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S1-6 Characteristics of the undertaking’s
employees
Employee figures in both the Sustainability Statement and the
Financial Statements are based on the official headcount at the end
of reporting period on December 31, 2024. In Financial Statements
the figures are shown in the note 8: Personnel expenses.
At the end of 2024, the company employed a total of 3,810
employees with 1,712 being white collars and 2,098 being blue collars.
Among the blue collars, 88 percent were male, and 12 percent were
female. Of the white collars, 73 percent were male, and 27 percent
were female.
There are two tire changing seasons each year when the headcount
increases temporarily by approximately 500–700 employees. During
2024, Nokian Tyres employed a total of 1,350 seasonal employees in
the Nordics at Nokian Tyres’ Vianor tire and car service chain.
Employee headcount by gender
Gender Number of employees (headcount)
Male 3,080
Female 730
Other* 0
Not reported 0
Total Employees 3,810
*Gender as specified by the employees themselves where possible for
persons to legally register themselves as having a third, often neutral,
gender.
Employee headcount in countries where Nokian Tyres has at least
50 employees representing at least 10 percent of its total number
of employees
Country Number of employees (headcount)
Finland 1,770
US 606
Norway 526
Sweden 426
Employees by contract type, broken down by gender (headcount)
Female Male Other
Not
reported Tot al
Number of
employees 730 3,080 0 0 3,810
Number of
permanent
employees 703 2,929 0 0 3,632
Number of temporary
employees 27 151 0 0 178
Number of non-
guaranteed hours
employees 3 46 0 0 49
Number of full-time
employees 693 2,998 0 0 3,691
Number of part-time
employees 37 82 0 0 119
Employees by contract type, broken down by region (head count)
Nordics
Other
Europe
North
America Total
Number of
employees 2,722 470 618 3,810
Number of
permanent
employees 2,548 466 618 3,632
Number of temporary
employees 174 4 0 178
Number of non-
guaranteed hours
employees 49 0 0 49
Number of full-time
employees 2,613 460 618 3,691
Number of part-time
employees 109 10 0 119
Turnover
Nordics
Other
Europe
North
America Total
Number of terminated
employees 240 55 131 426
Turnover rate 9 12 21 11
Number of terminated employees includes employees who have left
voluntarily or due to dismissal, retirement, or death in service during
the reporting period. In calculating the turnover rate, the denomi-
nator used is the number of head count at the end of the reporting
period.
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S1-7 Characteristics of non-employees
in own workforce
Nokian Tyres refers to non-employees as workers who do not have a
direct employment relationship with the company, but whose work is
controlled and led by Nokian Tyres.
In 2024, there were 342 (383) non-employees, most of them private
employment agency workers (225), working in the Finnish factory
production. Non-employee figures are reported in head count at the
end of reporting period on December 31, 2024.
S1-8 Collective bargaining coverage and
social dialogue
67 percent of Nokian Tyres’ employees were covered by collective
bargaining in 2024.
There are no agreements with employees for representation by
a European Works Council (EWC), a Societas Europaea (SE) Works
Council, or a Societas Cooperativa Europaea (SCE) Works Council in
Central Europe due to the small size of operations, with a low number
of employees in each country, the setup of the regional operations
and local legislations.
When there is no collective labor agreement, the company follows
the employment regulations that are available. Nokian Tyres complies
with the country-level legislation and regulation in each country.
S1-9 Diversity metrics
Nokian Tyres’ top management consists of the President and CEO
and the Management Team. The figures are based on the official
headcount on December 31, 2024.
Collective bargaining coverage and social dialogue
Collective Bargaining Coverage Social dialogue
Coverage rate
Employees – EEA
(for countries with >50 empl.
representing >10% total empl.)
Employees – Non-EEA
(estimate for regions with >50 empl.
representing >10% total empl.)
Workplace representation (EEA only)
(for countries with >50 empl.
representing >10% total empl.)
0–19% North America
20–39%
40–59%
60–79% Norway
80–100% Finland, Sweden Finland, Sweden, Norway
Gender distribution at top management level
Gender
Number of females 4
Number of males 5
Percentage of females 44
Percentage of males 56
Distribution of employees by age group
Gender
Number of under 30 years old 653
Number of 30–50 years old 2,137
Number of over 50 years old 1,020
Percentage of under 30 years old 17
Percentage of 30–50 years old 56
Percentage of over 50 years old 27
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S1-10 Adequate wages
Nokian Tyres will never pay anyone less than the minimum wage
defined in local legislation. Additionally, the company follows the local
market practice as well as collective agreements when applicable.
S1-11 Social protection
All Nokian Tyres employees are covered by social protection through
either public programs or company-provided benefits.
This coverage safeguards against income loss due to major life
events such as sickness, unemployment, work-related injuries,
acquired disabilities, parental leave, and retirement. Coverage begins
as soon as employees start working for the company.
S1-13 Training and skills development metrics
People Review discussions, which focus on managing performance
and employees’ personal development, are targeted to all employees.
The company's employee development program emphasizes internal
job rotation, on-the-job learning, and diverse development solutions.
It follows the 70–20–10 principle: 70 percent of growth comes from
on-the-job experience, 20 percent from learning from others, and
10 percent from formal training.
Percentage of Nokian Tyres' employees that participated in the people review process
Gender Participation % Employee category Participation %
Female 90 Blue collar 82
Male 87 White collar 91
Total 88 Total 88
Average training hours per employee in 2024
Gender
Average training
hours per employee Employee category
Average training
hours per employee Age group
Average training
hours per employee
Female 8.1 Blue collar 3.7 Under 30 3.2
Male 4.8 White collar 7.5 30–50 6.4
Over 50 4.9
Total 5.4 Total 5.4 Total 5.4
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S1-14 Health and safety metrics
The entire Nokian Tyres workforce is covered by the company’s
Health and Safety Management System and the KETO safety
reporting tool. The tire factories in Finland and in the US are certified
according to the international ISO 45001 occupational health and
safety standard. Safety management at Vianor follows the ISO 45001
standard but it is not externally certified.
In 2024, 450 days were lost to work-related injuries and fatalities due
to work-related accidents, work-related ill health, and fatalities from
ill health related to non-employees.
The entire Nokian Tyres workforce is covered by the company’s own
internally audited Safety Management Model, which is based on legal
requirements and recognized standards or guidelines. Relevant oper-
ations in both Finland and the US are externally audited according to
the ISO 45001 standard.
Lost-time incident frequency (LTIF)*
2024 2023
Nokian Tyres Finland 1.0 2.4
Nokian Tyres US 2.5 4.5
Nokian Tyres Romania 3.9 -
Vianor 8.9 7.8
Nokian Tyres Group 4.6 4.7
*Number of lost-time incidents / 1,000,000 hours worked
Number of cases of recordable work-related ill health of employees
2024 2023
Nokian Tyres Group 17 13
Number of fatalities as a result of work-related injuries and
work-related ill health
2024 2023
Nokian Tyres Group 0 0
Subcontractors working on Nokian Tyres' sites 0 0
Number of days lost to work-related injuries and
work-related ill health
2024
Nokian Tyres Group 450
S1-15 Work-life balance
All employees are entitled to family-related leave through social
policy and/or collective bargaining agreements.
S1-16 Pay gap and total remuneration
Nokian Tyres’ Total Rewards Philosophy and Guideline forms a
consistent framework for retaining, recognizing, and rewarding
employees. The guideline’s principles have been defined to support
the company’s goal of cultivating an engaged and high-performing
organization and help ensure fair and equal treatment of employees
across the organization.
Total recordable injury frequency (TRIF)*
2024 2023
Nokian Tyres Finland 8.0 8.9
- Own employees 7.5
- Non-employees 10.6
Nokian Tyres US 13.4 24.5
Nokian Tyres Romania 3.9 -
Vianor 15.4 14.6
Nokian Tyres Group 11.3 12.0
*Number of recordable injuries / 1,000,000 hours worked
Number of recordable accidents
2024 2023
Nokian Tyres Finland 23 26
- Own employees 18
- Non-employees 5
Nokian Tyres US 16 22
Nokian Tyres Romania 1 -
Vianor 52 45
Nokian Tyres Group 92 93
Occupational illness frequency (OIFR)*
2024 2023
Nokian Tyres Group 0.8 1.0
*Work-related ill health cases / 1,000,000 hours worked
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Rewards offer competitive packages, including both monetary and
non-monetary elements, to support performance, motivation, and
commitment. The monetary elements include a base salary, benefits,
and different kinds of incentives.
At Nokian Tyres, base salary setting follows the collective agree-
ments as well as local market practice based on defined job architec-
ture. All employees belong in the short-term incentive program.
Nokian Tyres’ reward structure is monitored regularly to ensure
it supports future performance and employee engagement. All
reported data is sourced from the global HR system and is calculated
in euros for consistency across all employees.
Incentive plans track performance
Nokian Tyres utilizes several incentive plans to measure both short-
and long-term performance. Two share plans align the long-term
goals of shareholders with those of key personnel, enhancing
company value and committing key personnel to the company’s
strategic objectives.
The current performance criteria in the company’s main long-term
incentive plan, the Nokian Tyres Performance Share Plan, are
cumulative EBITDA, increase in passenger car tire production volume,
and reduction of Scope 1 and 2 carbon dioxide equivalent (CO
2
e)
emissions. The CO
2
e sustainability target carries 10 percent weight of
the total of 100 percent target setting within long-term incentives.
Nokian Tyres’ Restricted Share Plan serves as a complementary long-
term incentive tool, used for the retention of Nokian Tyres President
and CEO, the Management Team, and other selected key employees.
Both plans were resumed in 2024, with the Performance Share Plan
adjusted to a two-year performance period plus a one-year
retention phase.
Short-term incentives, available to all employees, are designed to
drive strategy and reward achievement at various levels, such as
Group, business unit, team, or individual.
Remuneration metrics
2024 2023
Gender pay gap
1
0.6 -2.8
Total remuneration ratio
2
25.2 -
1
Gender pay gap is defined as the difference of average gross hourly pay
levels between female and male employees, expressed as percentage of
the average pay level of male employees.
2
Total remuneration ratio is defined as annual total remuneration ratio
of the highest paid individual to the median annual total remuneration
for all employees (excluding the highest-paid individual). Calculation
includes compensation elements stored in Nokian Tyres Global HR
system: employees' base salary, main allowances and bonuses on target
opportunity level (defined in bonus programs or as actually paid on median
level). Ratio is impacted by the high volume of blue-collar workers in
the workforce.
S1-17 Incidents, complaints and severe human
rights impacts
During the year, no work-related incidents of discrimination were
confirmed to have occurred on the grounds of gender, racial or
ethnic origin, nationality, religion or belief, disability, age, sexual
orientation, or other relevant forms of discrimination involving
internal and/or external stakeholders across operations. This includes
incidents of harassment as a specific form of discrimination. Zero
complaints concerning misconduct referred to above were reported
to the whistleblowing channel.
In addition, no severe human rights issues and incidents connected
to own workforce were reported during the year and there were zero
cases of non-respect of UN Guiding Principles and OECD Guidelines
for Multinational Enterprises.
There were no fines, penalties, and compensation for damages as
result of such incidents.
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SOCIAL INFORMATION
S2 Workers in the value chain
Material topic in
Nokian Tyres’ context
Impact, risk,
opportunity
Policy or work
instruction Management
• Working conditions
• Equal treatment and
opportunities for all
• Other work-related
rights
Adverse human rights
impacts related to
working conditions and
equality in the supply
chain and outsourced
operations
Procurement Guideline,
Sustainable Natural
Rubber Policy, Supplier
Code of Conduct
Nokian Tyres is committed and further
expects its suppliers, for example, to:
• Actively prevent child labor
• Provide its employees at least with the
minimum wage as required by local laws
• Provide its employees with a safe working
environment
• Respect the rights of migrant and foreign
workers and promote ethical recruitment
practice and take reasonable steps to
ensure that recruitment fees and other
associated costs are not born by employees
• Provide decent living conditions (e.g.
adequate housing, access to drinking water
and the right to food and food security) for
employees working and living on site, and to
support the same for local communities
• Ensure that labor rights related safeguards
apply to all employees, with no distinction
being made on discriminatory grounds or
employment status.
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SBM-3 Driving sustainable business
in the supply chain
Nokian Tyres is a premium tire manufacturer with sustainable way of
conducting business integrated into its strategy. As a tire manufac-
turer, Nokian Tyres purchases significant amounts of natural rubber.
It is one of the main ingredients in tires and also the livelihood of
hundreds of thousands of families living in countries where the local
legislation and working conditions have not been fully developed.
Thus, the material negative impacts mainly concern people working
with natural rubber in the company’s upstream value chain. Promot-
ing and ensuring decent working conditions is an essential aspect of
sustainable and responsible development.
The smallholders, dealers, and processors are not employed by
Nokian Tyres but work in the complex and fragmented natural
rubber supply chain. Natural rubber is mainly grown in countries
where sustainability risks are higher compared to, for example,
European countries. The world’s leading producers of natural rubber
are Thailand, Indonesia, and Vietnam. In Malaysia, migrant workers
have been identified as a particularly vulnerable group. A common
issue identified during the audits is the language and content of the
employment contracts, but also other non-conformities have been
observed.
Being a leader in sustainability is one of the cornerstones of Nokian
Tyres’ strategy. One of the company’s non-financial targets is to
develop the sustainability of the supply chain, with the aim of
having 100 percent of sustainability high-risk suppliers audited. To
gain understanding of the workers who are or could be materially
affected, Nokian Tyres conducts sustainability audits, during which
value chain workers are interviewed. Additionally, Nokian Tyres is
a member of the Global Platform for Sustainable Natural Rubber
(GPSNR), a platform in which different natural rubber stakeholders
participate and the views of value chain workers are presented
as well.
Also Nokian Tyres' manufacturing partners located at areas where
there can be sustainability-related risks have been audited. These
audits addressed topics like child labor and forced labor, and such
issues have not been identified.
Nokian Tyres is committed to conducting its business operations in
a manner that respects all internationally recognized human rights.
As a participant in the UN Global Compact initiative, Nokian Tyres
follows the UNGC’s ethical principles as well as its own. The company
requires that all the suppliers that it has identified to be sustainabil-
ity critical adhere to Nokian Tyres Supplier Code of Conduct. The
backgrounds of all new suppliers are checked according to Nokian
Tyres’ Due Diligence process before supplier approval, and Nokian
Tyres assesses the possible risks associated with the suppliers.
S2-1 Policies and processes that guide
sustainable procurement
The Group’s Procurement Guideline establishes the general principles
of sustainable procurement and guides Nokian Tyres’ Procurement
function’s work. As a participant in the UN Global Compact initiative,
Nokian Tyres follows the UNGC’s ethical principles as well as its own.
The company requires that all the suppliers that it has identified to
be sustainability critical adhere to Nokian Tyres Supplier Code of
Conduct that is publicly available on the company website. The com-
pany also has a Sustainable Natural Rubber Policy. In Nokian Tyres
Management Team, the Senior Vice President, Operation Excellence
is accountable for the implementation of these supply chain-related
policies.
The Supplier Code of Conduct expects the suppliers to commit
to respecting human rights, including labor rights, and prohibits
discrimination and the use of child labor or forced labor, among
other things. Suppliers must not participate in, or benefit from, any
form of modern slavery.
Nokian Tyres is committed to conducting its business operations in
a manner that respects all internationally recognized human rights,
understood as, at a minimum, those expressed in the International
Bill of Human Rights and the principles concerning fundamental
rights set out in the International Labour Organization’s Declaration
on Fundamental Principles and Rights at Work, and expects the same
of its suppliers.
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Nokian Tyres expects its suppliers to share the strive toward a more
socially sustainable supply chain, where decent working conditions
are promoted. Nokian Tyres is committed and further expects its
suppliers, for example, to:
• Actively prevent child labor
• Provide employees at least with the minimum wage as required by
local laws
• Provide employees with a safe working environment
• Respect the rights of migrant and foreign workers and promote
ethical recruitment practice and take reasonable steps to ensure
that recruitment fees and other associated costs are not born by
employees
• Provide decent living conditions (e.g. adequate housing, access
to drinking water and the right to food and food security) for
employees working and living on site, and support the same for
local communities
• Ensure that labor rights related safeguards apply to all employees,
with no distinction being made on discriminatory grounds or
employment status.
To detect actual material negative impacts and provide remedy,
Nokian Tyres conducts audits and is further committed to main-
taining a group-level grievance mechanism (in line with UN Guiding
Principles effectiveness criteria) that is appropriate for receiving
complaints and to providing an opportunity to enable remedy for
adverse human rights impacts caused through production or sourc-
ing/procurement. The company expects the same from its suppliers.
A common issue identified during the audits is the language and con-
tent of the employment contracts. In several cases, the records of
working hours, rest times and holidays are missing or are only partial.
In some audits it has also been identified that rest times and holidays
are not always granted in accordance with the local law. In some
countries, the recruitment of foreign workers has been identified as
a problematic topic. These findings are discussed in more detail in
the section Audits help identify the topics to be improved.
Assessing suppliers to detect and minimize risks
Nokian Tyres’ supply chain consists of approximately 3,500 suppliers,
including more than 200 raw material suppliers. Most of the supply
chain suppliers are located around the factory areas, and raw mate-
rial suppliers as well as manufacturing partners are located globally.
The backgrounds of all new suppliers are checked according to
Nokian Tyres’ Due Diligence process before supplier approval. Nokian
Tyres assesses the possible risks associated with the suppliers
according to the model presented on the next page. The assessment
model has four different categories: quality, sustainability (environ-
mental, social & governance), business/strategic criticality, and safety
at work.
Actions are taken with all new suppliers that are classified as critical
or medium critical in any of the four categories of the classification
model. The actions include, for example, sustainability on-site
audits, desk assessments and requests for management system
certification in terms of quality, environment, or safety. Potential
risks identified through desk assessments are further confirmed and
verified through on-site audits.
In Norway, the Transparency Act (Åpenhetsloven) requires
enterprises that meet certain requirements and operate in
Norway to conduct due diligence assessments. The aim is to
ensure that human rights and working conditions are respected
and followed throughout the value chain. This means that
companies must examine their own business, their supply
chain, and their business partners to find out where the biggest
risks are. Nokian Tyres has a sales company and a Vianor tire
chain company in Norway, and the accounts required by the
Transparency Act can be accessed on the company websites at
www.nokiantyres.no/bedriften/baerekraftighet/apenhetsloven
and www.vianor.no/bedriftskunder/om-oss/apenhetsloven,
respectively. (Norwegian Transparency Act 2021, Section 5 Duty
to account for due diligence)
ADDITIONAL, NON-MATERIAL INFORMATION
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IATF 16949
certification or
on-site audit
(starting with
self-assessment)
Critical Medium No additional actions needed
ISO 9001
certification or
quality
self-assessment
Occupational
safety
self-assessment
Risk mitigation
plan and financial
stability check
Risk mitigation
plan based on
supplier-specific
needs
Sustainability Safety at work Business / Strategic
Know Your Counterparty process
Supplier Risk Analysis process
Corrective actions
Corrective actions
Corrective actions
Quality
Critical Critical
Social &
Governance
Social &
Governance
Environment
& CO
2
Environment
& CO
2
CriticalMedium Medium MediumNot critical Not critical Not critical
Sustainability
self-assessment
(general and/or
natural rubber)
and sustainability
on-site audit
Sustainability
self-assessment
(general and/or
natural rubber)
Sustainability
self-assessment
and CO
2
reduction plan
Sustainability
self-assessment
and CO
2
reduction plan
2 options
Critical Not critical
Supplier risk management process
Risk mitigation plan
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Supplier Screening 2024
Total number of Tier 1* suppliers 3,598
Total number of significant suppliers in Tier 1 33
% of total spend on significant suppliers in Tier 1 18
Total number of significant suppliers in non-Tier 1 10
Total number of significant suppliers
(Tier 1 ) and non-Tier 1) 43
Supplier Assessment
Target for
2024 2024
Total number of suppliers assessed via
desk assessments/on-site assessments 23 23
% of significant suppliers assessed 53
Number of suppliers assessed with substantial
actual/potential negative impacts 23
% of suppliers with substantial actual/potential
negative impacts with agreed corrective
actions/improvement 30
Number of suppliers with substantial actual/
potential negative impacts that were terminated 20
Corrective action plan support 2024
Total number of suppliers supported in
corrective action plan implementation 0
% of suppliers assessed with substantial
actual/potential negative impacts supported
in corrective action plan implementation 0
*Tier 1 suppliers directly supply goods, materials or services to Nokian
Tyres. Non-tier 1 suppliers provide their products and services through
Tier 1 suppliers to the company.
(S&P Global CSA: Supply Chain Management, Supplier Screening)
Preventing and mitigating risks related to
natural rubber
Nokian Tyres’ sustainability risk evaluation model considers the
country-, sector- and commodity-specific risks. As a tire manufac-
turer, Nokian Tyres purchases significant amounts of natural rubber.
The sustainability aspects of natural rubber are related to countries
of origin, biodiversity, and complex and fragmented supply chains.
Natural rubber is mainly grown in countries where sustainability risks
are higher compared to, for example, European countries. The world’s
leading producers of natural rubber are Thailand, Indonesia, and
Vietnam. There are also country-specific overall sustainability risks,
such as the high number of migrant workers in Malaysia.
As a sector, natural rubber has historically contributed to defor-
estation and biodiversity loss due to converting natural forests into
natural rubber farms. Therefore, it is considered a high sustainability
risk sector.
In addition, natural rubber as a commodity includes complex and
fragmented supply chains with multiple layers of smallholders,
dealers, processing plants and traders. More than 85 percent of the
world’s natural rubber is produced on farms smaller than two hect-
ares in size, with daily output typically amounting to only a couple
of kilograms of latex. There are approximately three to six million
farmers of natural rubber who collect the milky latex or cup lumps
and sell it to local dealers. The local dealers collect latex from several
farmers and sell it to processing plants. This practice can disrupt the
traceability chain; for example, the processing facilities may not be
aware of the origins of the rubber they purchase. In such cases, there
is no direct contact between the processor and the farmer, and a tire
manufacturer’s visibility to the livelihood of the farmer is very limited
or non-existent.
On the other hand, approximately 73 percent of the world’s natural
rubber is consumed in tire production, which means that Nokian
Tyres and the whole tire industry have a positive impact in creating
and ensuring jobs in the natural rubber processing countries. As
a member of the Global Platform for Sustainable Natural Rubber
(GPSNR), Nokian Tyres is committed to a shared responsibility in
improving the social, environmental, and economic sustainability of
the global natural rubber value chain.
In 2021, Nokian Tyres adopted a Sustainable Natural Rubber Policy
that is fully aligned with the policy framework of the GPSNR. The
policy was approved by a member of Nokian Tyres Management
Team, the Senior Vice President, Operation Excellence, and the
company’s sustainability in natural rubber is developed through the
framework of this policy. The policy is publicly available on the Nokian
Tyres website, and it includes eight major components:
• Commitment to legal compliance
• Healthy functioning ecosystems
• Respecting human rights
• Community livelihoods
• Increased production efficiency
• Supply chain assessment and traceability
• Monitoring and reporting, and
• Driving effective implementation of all these components.
In 2024, 100 percent of Nokian Tyres’ approved natural rubber
processors were either members of the GPSNR or committed to
developing their operations according to Nokian Tyres’ Sustainable
Natural Rubber Policy.
ADDITIONAL, NON-MATERIAL INFORMATION
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S2-2 Hearing the value chain workers’ views
During the on-site audits conducted by Nokian Tyres, a certain
percentage of employees at different levels of the workforce are
confidentially interviewed to gather the views of the value chain
workers and to gain insight into the perspectives of workers who may
be particularly vulnerable to impacts. Follow-up audits are performed
every three years, which includes assessing the effectiveness of the
engagement. The Sustainability Manager from the Sustainability
department and the Category Manager from Procurement function
are responsible for coordinating the audits and ensuring that the
engagement happens.
In addition, the collaboration enabled by the GPSNR provides an
opportunity to hear the perspectives of value chain workers.
S2-3 Channels for raising concerns confidentially
and seeking remediation
The interviews conducted during audits provide an opportunity for
value chain workers to bring any issues to Nokian Tyres’ attention.
Additionally, in case value chain workers have concerns or suspect
infringements, they have the possibility to contact Nokian Tyres
through the company’s whistleblowing channel.
The purpose of Nokian Tyres’ whistleblowing process is to ensure
that the company’s governance systems operate at a high-quality
level and that the various stakeholders trust Nokian Tyres. The
purpose also is to encourage interest groups to report any activities
that infringe upon the legislation, the Code of Conduct, or other
provided guidelines.
All whistleblowers are protected against any form of retaliation.
Anonymous reports are treated with the same level of importance as
named reports. The topic “Business conduct” contains detailed infor-
mation about the whistleblowing channel and the related processes.
However, as the natural rubber supply chain is fragmented, all value
chain workers do not know which company will eventually utilize the
commodities they produce. To provide redress and remedy to any
party that has suffered negative impacts from the actions of the
GPSNR members, the GPSNR Grievance Mechanism (sustainable-
naturalrubber.org/grievance-procedure/) offers an opportunity for
stakeholders to express concerns that they have about a GPSNR
member or the GPSNR Secretariat and find optimal ways to resolve
disputes. Grievances can be submitted by email to info@gpsnr.org
or through an online form. If any cases linked to Nokian Tyres are
reported through the channel and considered valid by the GPSNR
Compliance Panel, Nokian Tyres will receive a corrective action
request. No requests were received in 2024.
Assessing the effectiveness of the channels and value chain workers’
awareness of the channels is challenging due to the fragmented
natural rubber supply chain.
S2-4 Audits help identify the topics to
be improved
Nokian Tyres started a partnership with an external auditor in 2016
to improve sustainability in its natural rubber value chain. The natural
rubber sustainability auditing process has been developed together
with a consulting company, and it is based on Nokian Tyres Supplier
Code of Conduct and principles that comply with the UN Global
Compact goals. In 2022, the audit model was updated so that it also
evaluates the suppliers’ alignment with Nokian Tyres Sustainable
Natural Rubber Policy.
Nokian Tyres exclusively purchases rubber processed in the plants
that the company has approved. In 2024, Nokian Tyres conducted
five sustainability audits of natural rubber processing plant suppliers.
Nokian Tyres has conducted sustainability audits for 100 percent of
its sustainability critical rated suppliers on a three-year cycle. The
target is to maintain this level, which drives the minimum level of sus-
tainability audits to be conducted annually. In addition, sustainability
audits can be arranged at suppliers’ site for other reasons, such as
when Nokian Tyres begins to source from a sustainability-critical
country for the first time.
After the audit, the full report is shared with the supplier to show
their shortcomings and to highlight the positive findings. This gives
valuable information for the supplier about how they can improve
their operations.
A common issue identified during the audits is the language and
content of the employment contracts. The contract is not neces-
sarily available in the employees’ mother tongue, or the translated
content differs from the original. In several cases, the records of
working hours, rest times and holidays are missing or incomplete. In
some audits it has also been identified that rest times and holidays
are not always granted in accordance with the local law.
In some countries, the recruitment of foreign workers is a prob-
lematic topic. Foreign workers are recruited through a recruitment
agency network, and the amount of recruitment costs to the
employee can be as much as a year’s salary. As the agencies are
often approved by local governments, it is difficult to improve the
process. However, Nokian Tyres requires its suppliers to improve also
on this issue. The suppliers have requested support from the local
officials, but the progress is slow.
Nokian Tyres identified one severe labor rights issue during 2024.
During an on-site sustainability audit it was discovered that the
audited company paid the workers less than minimum wage defined
by the government. The audited company has performed corrective
actions.
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All Nokian Tyres' relevant manufacturing partners have also been
audited by a respected third-party auditing agency, partly supple-
mented by Nokian Tyres’ own on-site audits. The audits have included
quality audits based on ISO9001, environmental audits based on ISO
14001, and social responsibility audits based on SA8000 standard
requirements. Only minor remarks on sustainability matters have
been noted during the audits of manufacturing partners.
Monitoring progress
Nokian Tyres requires the suppliers to provide corrective action
plans to improve on the shortcomings. Nokian Tyres’ Sustainability
department follows up on the updated corrective action plans and
monitors progress on their implementation. Many suppliers have,
for example, introduced employment contracts in several different
language versions. This shows that processes can be improved
when an external party reviews them and indicates the need for
improvement. If the supplier does not provide the corrective action
plan or perform the corrective actions, the supplier can be put on
hold status to prevent further business with the supplier until the
requested actions are completed.
Nokian Tyres aims to conduct follow-up audits every three years at
the high sustainability risk suppliers’ sites. Currently, Nokian Tyres has
mitigation plans from eight audited supplier sites and is monitoring
the closing of the corrective actions until the next follow-up audits.
The Procurement and Sustainability departments share the responsi-
bility for overseeing the organization’s management of impacts and
effectiveness of the actions.
S2-5 Targeting for a sustainable supply chain
Nokian Tyres drives sustainable development in the supply chain.
The aim is to maintain the status that was achieved in 2023, where
100 percent of sustainability high-risk suppliers in the company’s
value chain have been audited. This target is supported by setting
yearly key performance indicators related to the audits and other
topics related to the sustainability of the supply chain.
The value chain workers do not directly participate in the setting of
the yearly KPIs or in tracking the company’s performance against
them. However, the insight gained from interviews with the value
chain workers during the audits and through the GPSNR informs the
decisions that are made to improve the company’s performance.
The KPIs also support the objectives of the policies related to supply
chain sustainability.
In 2024 the most important KPIs were the following:
• Minimum five sustainability audits performed
• 100 percent of natural rubber processor suppliers are either
GPSNR members or signed Nokian Tyres sustainability
commitment.
Both KPIs were achieved. Nokian Tyres performed five sustainability
audits in total.
In 2025, Nokian Tyres aims to uphold the status of having 100
percent of sustainability high-risk suppliers audited, and also to
uphold the status of 100 percent of natural rubber processor
suppliers either being GPSNR members or having signed Nokian Tyres
Sustainable Natural Rubber Policy.
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SOCIAL INFORMATION
S4 Consumers and end users
Material topic in
Nokian Tyres’ context
Impact, risk,
opportunity
Policy or work
instruction Management
Health and safety Positive impacts by
improving road and end
user safety
Environmental, Safety,
and Quality Guideline,
Code of Conduct,
testing policies
As a front-runner in its industry, Nokian Tyres
continuously improves the quality and safety of its
products, services, and processes.
Nokian Tyres’ operations are customer-oriented and
consider products’ entire life cycles.
Nokian Tyres’ leadership and product development
are guided by the company’s Code of Conduct,
Environmental, Safety, and Quality Guideline, as well as
stringent testing policies.
Nokian Tyres adheres to various regulations regarding
noise, studs, chemicals, testing, and tire markings,
among others.
The product lifecycle process for passenger car tires
guides internal processes to develop new products and
ensure the quality and safety properties throughout
the whole product lifecycle.
Quality information
and responsible
marketing
Positive impacts by
increasing end user
awareness on safety,
environmental and
other aspects by
providing educational
content
Code of Conduct Nokian Tyres’ goal is to achieve efficient contact with
the personnel and interest groups. The company will
always communicate reliably.
Nokian Tyres markets according to good practice and
provides truthful information in its marketing.
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SBM-3 Committed to continuous improvements
in quality and safety
Creating the safest tires for all conditions is one of the five
cornerstones of Nokian Tyres’ strategy. Consumers today demand
high-quality, safe, and environmentally sustainable products. Nokian
Tyres is dedicated to consistently meeting these expectations.
Consumers and end users of tires from Nokian Tyres include drivers
and operators of various vehicles – whether they drive passenger
cars, work in transportation driving trucks, buses, or vans, or are
employed in industries like forestry or agriculture. In addition to
tires, Vianor offers a range of tire and car services for both individual
consumers and business customers.
Tires' impact on safety
Tires play a crucial role in ensuring the safety of both drivers and
others on the road. From a technical standpoint, a car tire is a highly
demanding product. It must allow the driver to maintain control in all
conditions while also being energy-efficient, environmentally friendly,
and designed to reduce road wear and noise.
With the increasing frequency of extreme weather events due to
climate change and varying road conditions, tire safety has become
more critical than ever. Tires that perform well under challenging
conditions directly enhance the safety of both drivers and those
around them.
Material topic in
Nokian Tyres’ context
Impact, risk,
opportunity
Policy or work
instruction Management
Quality information
and responsible
marketing
Opportunity
through fact-based
and innovative
sustainability
communications and
marketing
Code of Conduct Nokian Tyres’ Code of Conduct defines its approach to
marketing and communications.
It promotes reliable, balanced, and timely
communication, ethical marketing practices, and the
provision of truthful information.
Privacy Risk of negative
impacts due to
compromised
customer privacy as a
result of inadequate
cybersecurity and/or
inadequate privacy
Code of Conduct,
Data Protection
Policy, Data Subject
Rights Guideline, Data
Breach Guideline,
Information Security
Policy, Data Retention
Guideline, Privacy
Statements
Nokian Tyres’ Code of Conduct and Data Protection
Policy respect the protection of privacy and adhere to
privacy legislation.
Personal data provided by customers and other
parties will only be used in the manner stipulated in the
legislation concerning privacy.
Nokian Tyres’ Information Security Policy describes
the group’s process for protecting the confidentiality,
integrity and availability of information assets in order to
manage and reduce information risks.
The Data Subject Rights Guideline sets out a process
for executing data subject requests in compliance with
applicable laws.
Data Breach Guideline sets out a process for handling
data breaches in compliance with applicable laws.
The Data Retention Guideline sets out the guiding
principles on retention of personal data within the group.
Privacy Statements are made available to the data
subjects to describe how their personal data is being
processed by Nokian Tyres group.
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Safety as Nokian Tyres’ top priority
Sustainability has long been at the core of Nokian Tyres’ product
development. As a tire manufacturer, Nokian Tyres is committed to
developing, producing, and marketing tires that are verifiably safe
and meet the highest quality standards. The company aims to create
energy-efficient, durable, and premium tires that exceed customer
expectations.
Nokian Tyres positively impacts road and end user safety in two key
ways. First, it produces high-quality tires suitable for all conditions,
enhancing road safety. Second, it provides guidance and educational
resources to help consumers and end users choose the right tires
and assess their tire condition effectively.
Nokian Tyres’ vision is to lead the world toward smarter driving, which
includes regular educational outreach. To raise consumer aware-
ness, Nokian Tyres offers educational content focused on safety,
environmental responsibility, and other considerations. This includes
practical advice, such as checking tire pressure, selecting the right
tires, and ensuring proper tire recycling.
When it comes to communications and marketing, the target
audience consists of individuals seeking product information
when purchasing tires, users looking for tire maintenance tips, and
consumers who receive email updates because they've opted in or
are existing customers. Nokian Tyres and Vianor also share valuable
information via social media platforms and company websites.
Strengthening brand reputation through
communication
Nokian Tyres sees an opportunity to engage more closely with its
customers through clear, fact-based sustainability communications
and marketing. Proactive and innovative communication strategies
enhance brand reputation and help drive increased revenue.
Personal data protection
Nokian Tyres processes the personal data of both individual
consumers (B2C customers) and contact persons from corporate
clients (B2B contacts). The company conducts Data Protection
Impact Assessments (DPIAs) in compliance with data protection laws.
These assessments evaluate whether certain consumer groups, such
as minors, may be more vulnerable than the average consumer. For
example, some minors – like moped drivers – may visit Vianor service
centers, resulting in the processing of their personal data. However,
no other consumer groups have been identified as being at higher
risk than average consumers.
Managing potential negative impacts
In terms of potential negative impacts, Nokian Tyres recognizes the
possibility of compromised customer privacy due to inadequate
cybersecurity or privacy measures. Insufficient protection could
lead to data breaches or misuse of personal information, potentially
causing financial harm to consumers. Although such incidents could
have widespread repercussions in a worst-case scenario, they would
likely remain isolated.
Consumers and end users materially affected by Nokian Tyres were
included in the company’s double materiality assessment (DMA).
The stakeholder survey was made available via social media, and
an internal DMA workshop involved representatives from all three
business units – Passenger Car Tyres, Heavy Tyres, and Vianor – along
with survey participation from their respective customers.
S4-1 Policies and requirements guiding
Nokian Tyres’ work
Nokian Tyres’ Environmental, Safety, and Quality Guideline affirms
the company’s commitment to developing and manufacturing
high-quality premium products and services that provide users with
safe, economical, and comfortable driving experiences. It also pledges
to deliver the best service in the tire industry across all areas.
Nokian Tyres operates in alignment with the UN Guiding Principles
for Business and Human Rights and its own Code of Conduct, which
reflects these principles. The company is dedicated to avoiding any
actions that could cause or contribute to human rights violations.
If such impacts do occur, Nokian Tyres takes prompt action to
address them.
Additionally, Nokian Tyres aims to prevent or mitigate human rights
risks directly linked to its operations, products, or services. For
consumers and end users, these risks may involve issues related to
security and privacy rights.
In case adverse human rights impacts occur, Nokian Tyres has
established procedures to ensure proper remediation. If a personal
data breach takes place, the company will notify local supervisory
authorities and affected individuals in accordance with applicable laws.
Rigorous testing policies and standards
In addition to adhering to Nokian Tyres’ Code of Conduct and
Environmental, Safety, and Quality Guideline, the product develop-
ment processes are driven by rigorous testing policies. The Product
Lifecycle Process guides internal procedures for developing new
products while ensuring quality and safety standards are maintained
throughout the entire product lifecycle.
The company adheres to various regulations covering noise, studs,
chemicals, testing, and tire markings, among others. Tires in scope
of EU Tyre Labelling regulation comply with the requirements and
the related information is available in European Product Registry of
Energy Labelling (EPREL).
As a full member of the European Tyre and Rim Technical Organisa-
tion (ETRTO), Nokian Tyres actively participates in global standard-
ization and regulatory efforts. In addition, products of Nokian Heavy
Tyres are designed according to ETRTO standards.
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Currently, Nokian Tyres contributes to the European Tyre and Rubber
Manufacturers Association’s (ETRTO) development of a tire abrasion
test method. Further details can be found under "Pollution" in
the Environmental Information section.
Safeguarding consumers’ and end users’ data,
and providing truthful information
Protecting the privacy of consumers' and end users' data is import-
ant to Nokian Tyres. The company is fully committed to data protec-
tion, continuously striving to uphold and enhance its standards. Both
the Code of Conduct and Data Protection Policy emphasize privacy
protection and strictly comply with relevant legislation, and the Data
Protection Policy lays down the basic fundamental requirements for
personal data processing.
Personal data provided by customers and other parties is used only
as permitted by privacy laws. To ensure compliant practices, Nokian
Tyres has established the following written guidelines for handling
personal data:
• Data Subject Rights Guideline: Outlines the process for responding
to data subject requests in compliance with applicable laws.
• Data Breach Guideline: Details the procedure for managing data
breaches in accordance with legal requirements.
• Data Retention Guideline: Defines the principles for retaining
personal data across the group.
Nokian Tyres’ Code of Conduct defines its approach to marketing
and communications, focusing on effective engagement with stake-
holders, including consumers and end users. It promotes reliable,
balanced, and timely communication, ethical marketing practices,
and the provision of truthful information.
No significant changes were made to the Data Protection Policy or
related guidelines during the reporting year. The Environmental,
Safety, and Quality Guideline received minor updates in the spring of
2024, consisting of small additions and wording adjustments.
Oversight and implementation
Regarding the Data Protection Policy, the Board of Directors is
responsible for overseeing the organization’s data protection
governance and management effectiveness. The President and CEO
approves and assigns roles and responsibilities for data protection
management, defines strategic objectives, and allocates resources
to achieve them. The General Counsel oversees and directs personal
data protection governance, while Business Unit, Business Area, and
function leaders are accountable for implementing data protection
principles and practices within their respective areas.
The President and CEO is also responsible for implementing both
the Environmental, Safety, and Quality Guideline and the Code of
Conduct. Additionally, the Product Lifecycle Process is approved by a
member of Nokian Tyres’ Management Team.
All policies relevant to consumers and end users are publicly accessi-
ble on Nokian Tyres' website.
S4-2 Engaging with end users
At Nokian Tyres, premium quality means premium class safety. The
company has maintained a 23-year track record without significant
product recalls.
Nokian Tyres’ primary customers are tire dealers and other inter-
mediaries who sell the tires to end users, so Nokian Tyres has direct
engagement with both groups, but engagement with end users can
also happen through dealers.
When developing new products, consumer and end user needs are
researched and taken into account to guide the development work.
During the new product development phase, consumers’ needs are
collected in cooperation with Business Areas through different types
of surveys, such as dealer surveys. This kind of feedback guides the
focus and needs of development in product development processes.
Each year, Nokian Heavy Tyres (NHT) conducts customer surveys to
key accounts and all buying customers. The survey consists of the
following topics: trust and reliability, customer service and collabora-
tion, and product quality and range.
In addition, NHT’s personnel train customers on products and
product safety. End users of heavy tires can also give feedback,
request materials, and ask for technical information via NHT’s
web page: www.nokiantyres.com/heavy/contact-us/feedback/.
The most senior role responsible for engagement is the Executive
Vice President of Heavy Tyres and Nokia Factory.
Consumers and end users are also able to provide feedback on
Nokian Tyres products. Additionally, during its double materiality
analysis, Nokian Tyres included retailers among the survey respon-
dent groups. The insights gathered from retailers are considered
when managing sustainability impacts.
Regarding B2B customers, Nokian Tyres has not identified any groups
as particularly vulnerable to impacts. However, in the B2C context,
Nokian Tyres has noted that some minors may be among the
customers of Vianor’s services.
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S4-3 Processes to remediate negative impacts
If Nokian Tyres identifies a material negative impact on consum-
ers and end users due to compromised customer privacy from
inadequate cybersecurity measures, it will notify local supervisory
authorities and all individuals whose personal data may have been
compromised, in accordance with applicable laws.
If a consumer or end user suspects a data protection issue, they can
contact Nokian Tyres directly via email at privacy@nokiantyres.com.
The number of incoming Data Subject Requests is monitored
internally, and response times are tracked to ensure compliance with
legal requirements.
The Privacy Statement, available on Nokian Tyres’s website, includes
instructions on how to contact the company. Additionally, when
a consumer registers for any of Nokian Tyres or Vianor’s services,
they are informed about the Privacy Statements, including relevant
contact details.
End users are encouraged to share feedback or concerns through
their local website or, for product-related issues, by contacting the
dealer where the tires were purchased. If these channels do not fully
resolve the issue, end users can reach out to Nokian Tyres’s main
offices via various channels, including info@nokiantyres.com.
For unresolved concerns or significant issues, such as suspected
infringements, anonymous reports can be made through the
whistleblowing channel.
The Code of Conduct, available on the website, includes instructions
for using the whistleblowing channel. Nokian Tyres’ policies protect
individuals from retaliation when raising concerns about a miscon-
duct, as outlined in the Code of Conduct.
Nokian Tyres plc manages personal data related to the company’s
group-level whistleblowing process. All grievances are handled
confidentially and with respect to privacy and data protection rights.
While the number of whistleblowing cases is monitored internally,
there are currently no processes in place to track the effectiveness
of these reporting channels or the consumers and end users' aware-
ness and trust toward these structures and processes.
S4-4 Taking action to manage impacts and
pursue opportunities
In 2024, Nokian Tyres did not identify any severe human rights issues
or incidents involving consumers or end users.
To proactively manage potential material impacts, the company has
allocated resources across key functions. Data protection responsi-
bilities are clearly defined within the Data Protection Policy, ensuring
compliance and accountability.
For the development of passenger car tires' safety properties, the
Products and Innovations unit takes the lead in managing impacts.
Additionally, the Nokian Heavy Tyres business unit oversees heavy
tire safety, reinforcing the company’s commitment to end user and
product safety.
The sustainability team and corporate communications handle cor-
porate sustainability communications and collaborate with business
area marketing teams to develop educational content.
Increasing awareness on data protection
In 2024, Nokian Tyres introduced a training plan to raise employees'
awareness of data protection. This initiative supports the imple-
mentation of the Data Protection Policy and related guidelines. Key
actions included posting updates on the intranet, promoting the
e-learning module, and monitoring completion rates. There are also
plans to extend training to Vianor and customer service outlets,
focusing on the Data Subject Rights process.
Both the Data Subject Rights Guideline and Data Breach Guideline
are aligned with GDPR requirements. In 2018, Nokian Tyres conducted
an extensive GDPR project to establish compliant practices for
managing data subject rights and data breaches.
Data privacy management activities are structured in annual cycles,
with planned actions outlined for each quarter of the year.
Safety and comfort in all conditions
Nokian Tyres actively participates in the continued development of
EU Tyre Labelling test methods for regulatory purposes, including
wet grip and ice grip testing. These performance features are critical
for passenger car tire safety, determining how quickly a vehicle with
particular tires can stop on wet or icy roads.
As for heavy tire safety, tire pressure poses a significant risk of
explosion, and working with tires involves various occupational safety
hazards. As tires have grown larger and heavier, their pressures
have increased as well. Tire industry professionals handle a growing
number of tires with diverse sizes and technical specifications daily.
Recognizing these risks in advance and taking effective measures to
manage them is crucial.
To ensure the safety and premium quality of its tires, Nokian Tyres
uses high-quality raw materials. Each raw material is rigorously tested
and studied, while the rubber compounds are continuously improved.
Process controls are implemented throughout production to guar-
antee quality, with every tire undergoing production quality control.
This includes testing for force variations, roundness, and unbalance
measurements, as well as a thorough visual inspection.
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At Nokian Tyres' test centers in Nokia and Ivalo, Finland, and Santa
Cruz de la Zarza, Spain, tire performance is evaluated under diverse
conditions: wet and dry asphalt, ice, snow, slush, inclines, corners,
straights, and even cobblestones. Tires are tested during accelera-
tion, braking, aquaplaning, and on handling tracks, in both freezing
cold and extreme heat.
Nokian Tyres is also committed to reducing tire noise emissions.
The state-of-the-art test center in Santa Cruz de la Zarza includes
a 1.9-kilometer "comfort road" that simulates different types of
asphalt and rough roads, as well as cobblestone streets.
The flagship Nordic winter tires, the non-studded Nokian Tyres
Hakkapeliitta R5 EV and studded Nokian Tyres Hakkapeliitta 10 EV,
are specially designed for electric vehicles. Both feature noise-
reducing innovations, including an interior foam layer that
minimizes noise inside the vehicle.
Nokian Tyres has been designing and testing tires for electric
vehicles for over 10 years. In 2023, the company introduced the
ELECTRIC FIT™ symbol across its entire portfolio of premium
passenger car tires. This symbol indicates that Nokian Tyres tires
are compatible with both internal combustion engine and electric
vehicles, offering safe and high-quality performance regardless of
the vehicle's powertrain.
The EU Tyre Label provides reliable and transparent
tire information for consumers and end users
The established standards and regulations provide a solid foundation
for Nokian Tyres’ commitment to product safety. The EU Tyre Label
empowers consumers to make informed decisions when purchasing
tires by highlighting key performance attributes such as fuel effi-
ciency, wet grip, and pass-by noise levels. The labeling values provide
reliable and transparent information to consumers and end users
to evaluate different products. A recent update to the regulation,
the snow and ice grip markings, now includes information on winter
performance.
Nokian Tyres’ products covered by the EU Tyre Labelling Regulation
are equipped with the EU Tyre Label. Detailed labelling information is
also available on the company’s website. Additionally, Nokian Heavy
Tyres provides product information, including certificates and techni-
cal manuals, for all customers and consumers on NHT’s website.
TIRE GRIP AND SAFETY
When it comes to the safety of passenger car tires, wet grip, snow
grip, and ice grip are critical performance indicators. The EU Tyre Label
rates wet grip on a scale from A to E, indicating braking performance
in wet conditions – the higher the rating, the shorter the braking
distance.
Since May 2021, the label has expanded to include snow and ice grip
markings. Tires approved for severe snow conditions feature the snow
grip marking, while those passing international ice grip tests carry the
ice grip marking. The ice grip marking is only applicable to passenger
car tires.
Additionally, the label includes a QR code that links to the European
Product Registry for Energy Labelling (EPREL), providing more detailed
information about the tire. Consumers can download and print the tire
label directly from EPREL.
NOISE LEVELS
Tires generate pass-by noise, which affects both the people inside the
vehicle as well as those around it. The EU Tyre Label classifies pass-by
noise from A to C, with A representing the lowest external noise levels.
Noise levels are influenced by various factors, including vehicle type,
tire size, road surface, driving speed, and climate conditions.
SAFE AND SUSTAINABLE TIRE USE
Nokian Tyres aims to lead the way in smart driving, educating drivers
on how to maximize tire performance through responsible driving and
tire maintenance. Tires with lower rolling resistance reduce emissions,
and predictable driving habits, along with properly maintained tires,
significantly enhance road safety.
In addition to the EU Tyre Label, Nokian Tyres provides comprehensive
guidance on tire use and maintenance through its website, regularly
covering essential topics like maintaining the correct tire pressure.
SUPPLIER’S NAME
Tyre class
2020/740
A
A
B
B
C
C
D
D
E
E
A
A
B
B
C
C
D
D
E
E
A
A
A
BC
XY
dB
Insert here
product
QR code
Size
QR code for
easy info
access
Noise class
scale from
A to C
Snow and
ice grip
markings
Wet grip
& fuel
efficiency
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Increasing end user awareness on both safety
and sustainability
Nokian Tyres is committed to continuously raising end user
awareness on safety, environmental, and other important aspects
through educational content. The company’s websites offer detailed,
product-specific information about tire safety features, as well as
general advice on topics like proper tire pressure, tread depth, tire
storage and maintenance, the impact of low rolling resistance on
fuel consumption, and safe driving practices in wet, snowy or icy
conditions.
In addition to highlighting these topics across all of Nokian Tyres’
market areas, press releases and social media posts help to raise
awareness and reach a broader audience. In the Nordics and North
America, consumer newsletters also provide regular updates on
these subjects. Additionally, Vianor’s marketing team in the Nordics
regularly communicates tire and traffic safety information to both
B2C and B2B end users.
When a customer visits Vianor for car or tire service, the condition
of their vehicle’s tires is checked, and information about the tires’
condition is shared to them. If necessary, the customer also receives
a recommendation to replace the tires to ensure road safety.
Similarly, the condition of customers’ tires stored at Vianor is
checked, and if the tires are no longer road-safe, the customer is
informed prior to the next tire change with a recommendation to
purchase new tires.
Opportunities in fact-based and innovative
communications
Nokian Tyres intends to communicate regularly with consumers and
end users regarding sustainability innovations, achievements, and
actions that demonstrate the company’s leadership in sustainability,
and which can influence their purchasing decisions. This involves
highlighting how the company’s sustainability efforts contribute
to key areas such as environmental impact, climate actions, raw
material innovations, and product performance.
By sharing this information through various channels, including web-
sites, press releases, and social media, Nokian Tyres aims to provide
consumers and end users with clear, fact-based insights into how its
products support sustainability. This approach not only reinforces
the company’s commitment to environmental responsibility but also
helps consumers make informed choices that align with their values.
S4-5 Targets to improve road and end user safety
Improving grip in various road conditions – such as wet, snow, and ice
– is a continuous development target for Nokian Tyres’ R&D, directly
linked to the company’s safety policy commitments. Although con-
sumers and end users were not involved in setting or tracking these
targets, the EU Tyre Label’s classification criteria for wet grip, rolling
resistance, noise, fuel efficiency, snow grip, and ice grip help simplify
and guide purchase decisions.
The EU Tyre Label classification is used in Nokian Tyres’ Product
Lifecycle Process to establish specific product performance targets,
as achieving certain labeling classifications or fulfilling the criteria for
labeling markings provide a means to assess product performance
reliably and transparently.
For wet grip, Nokian Tyres aimed for 100 percent of its premium
passenger car tires to achieve an A or B class rating in the EU Tyre
Labeling system by 2025. By the end of 2023, the company had
already met this target, with all premium tires in the selected scope
rated A or B. The selected scope comprises the latest generation
tires that are in price category A and included in the EU Tyre
Labelling. The scope does not include Nordic winter tires, for which
ice grip is crucial.
In terms of ice grip, ensuring the safety of winter tires is a top priority
for Nokian Tyres. The goal was for all of Nokian Tyres Hakkapeliitta
products to meet the EU ice grip requirements by 2025. This target
was achieved in 2022.
Nokian Tyres remains committed to maintaining high safety
standards and continues to develop future products accordingly.
The company targets to ensure that 100 percent of its premium
passenger car tires achieve an A or B class wet grip rating in the EU
Tyre Labeling system and that all of the Nokian Tyres Hakkapeliitta
products meet the EU ice grip requirements also in the future. In
2024, this target was achieved. Additionally, the company actively
collects user feedback and ratings on its website, allowing consumers
to provide insights and suggestions for improvements.
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Governance
information
G1 Business conduct 123
General information
Environmental information
Social information
Governance information
Nokian Tyres’ business is
guided by the ethical principles
presented in the Board-
approved Code of Conduct.
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GOVERNANCE INFORMATION
G1 Business conduct
Material topic in
Nokian Tyres’ context
Impact, risk,
opportunity
Policy or work
instruction Management
Management of
relationships with
suppliers including
payment practices
• Positive impacts
from ethical and
sustainable sourcing
practices
• Opportunity for
being a preferred
partner for suppliers
through good and
fair relationship
management
Supplier Code of
Conduct, Sustainable
Natural Rubber Policy,
Nokian Tyres’ general
terms and conditions
for purchases
Nokian Tyres aims to be a trusted partner
and a sustainability benchmark in the
industry. This can only be achieved by having
a network of responsible suppliers. The
Supplier Code of Conduct defines the basic
principles that every supplier must comply
with.
The standard payment term is 60 days net
and for raw material purchases 90 days net. In
the case of e.g. smaller suppliers the payment
terms are reconsidered when necessary.
Political engagement
and lobbying activities
Positive impacts from
advancing and lobbying
for legislation that is
beneficial for end users
and/or the environment
Code of Conduct Nokian Tyres does not provide monetary
or in-kind support to political parties or
groups or individual politicians. Lobbying is
conducted through industry associations,
and it is transparent and characterized by
accurate contribution of the company’s
technical expertise and knowledge
concerning the tire industry and other related
sectors, with a focus on products, safe and
sustainable mobility, and innovation.
Placeholder image
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G1-1 Corporate culture and business
conduct policies
Nokian Tyres’ business is guided by the ethical principles presented
in the Code of Conduct approved by the Board of Directors that can
be found on the company website at company.nokiantyres.com/
sustainability/responsible-business/corporate-culture-and-busi-
ness-conduct/code-of-conduct/. The document includes
instructions for various matters related to ethics and anti-bribery
guidelines.
At the heart of the corporate culture at Nokian Tyres are the key
policies that are defined within the compliance framework of the
company. The Board of Directors and Nokian Tyres Management
Team review them annually. These policies include policies targeting
for good corporate ethics, such as Code of Conduct, Anti-Bribery
and Conflict of Interest Code of Conduct, Data Protection Policy, and
Supplier Code of Conduct, among others, as well as financial policies,
such as Tax Policy and Enterprise Risk Management Policy. The poli-
cies present the principles to be followed in Nokian Tyres’ business,
as well as further operative guidelines and controls to ensure the
policies are followed.
Reporting and handling of breaches
At Nokian Tyres, the general controls, including identifying, reporting
and investigating unlawful behavior or behavior in contradiction with
the Code of Conduct, are the responsibility of the line organization
and the various specialist functions as part of their normal operative
work. Nokian Tyres has also had a whistleblowing channel available
since 2011.
Nokian Tyres whistleblowing channel was renewed in 2024. The com-
pany started utilizing whistleblowing service provided by an external
third party. The whistleblowing channel is available to external
stakeholders on the company website.
All messages received in the channel are handled confidentially and
they are encrypted. Anonymous reports are allowed, and to ensure
the anonymity of the whistleblower sending the message, the service
provider deletes all meta data, including IP addresses. The whis-
tleblower remains anonymous in the subsequent dialogue with the
responsible receivers of the report.
Access to messages received through the whistleblowing channel
is restricted to members of the whistleblowing team that has the
authority to handle whistleblowing cases. Their actions are logged,
and handling is confidential. Internal instructions and training
concerning the investigation process and rules pertaining to it are
in place for the members of the whistleblowing team. When needed,
the whistleblowing team may request information and expertise
from other individuals within or outside the company. These
individuals can gain access to relevant data and are also bound to
confidentiality.
The Code of Conduct eLearning includes training on the whis-
tleblowing channel. In addition, when adopting a new whistleblowing
service tool in 2024, the company communicated the change by
several means, such as in general info calls and team meetings and
organizing activities to promote the awareness of the whistleblowing
channel.
Nokian Tyres is committed to investigating business conduct
incidents promptly, independently and objectively. Nokian Tyres’
Whistleblowing Committee was formed in 2019 to guide and monitor
the activities relating to the whistleblowing channel. All material
issues will be reported to the Audit Committee and People and
Sustainability Committee at least once a year.
In 2024, no compliance breaches were found relating to corruption
or bribery, conflict of interest, money laundering or insider trading, or
any subjects referred to in the EU Whistleblowing Directive.
Nokian Tyres informed on January 30, 2024 that the European
Commission had at the same day initiated an unannounced
inspection at Nokian Tyres plc’s headquarters in Nokia, Finland. The
European Commission has expressed its concerns that the inspected
tire manufacturing companies may have violated EU antitrust rules
that prohibit cartels and restrictive business practices. Nokian Tyres
does not have information on the outcome of the inspection, and it
cannot comment on the ongoing investigation. Nokian Tyres is fully
co-operating with the authorities.
Internal Audit
Nokian Tyres Group’s Internal Audit was outsourced in 2024. The out-
sourced Internal Audit team reports administratively to the CFO and
functionally to the Audit Committee. Each year, the Audit Committee
approves the focus areas for Internal Audit.
Nokian Tyres’ Internal Audit systematically carries out assessments
and audits on the efficiency of risk management, internal control,
and corporate governance processes. Internal Audit is an inde-
pendent and objective function aimed at helping the organization
achieve its goals. The principles for Internal Audit have been
confirmed in the Internal Audit Charter and Policy, approved by the
Board of Directors.
The operation of Internal Audit covers all business activities,
functions and processes within the Nokian Tyres Group. The audit
assignments are based on the key strategic focus areas of the
company’s operations and the associated risks. The audit findings,
recommendations and management action plans are presented to
the Audit Committee, followed by ongoing monitoring and follow-up
on the implementation of the management action plans.
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Protecting whistleblowers and training the employees
The reports of suspicions concerning illegal activity at Nokian
Tyres or infringements of Nokian Tyres’ Code of Conduct or other
guidelines may be submitted anonymously. The reports sent via the
whistleblowing channel are processed by Nokian Tyres’ whistleblow-
ing team. When needed, the whistleblowing team may request
information and expertise from other individuals within or outside
the company. All the people participating in the investigation have a
professional understanding and capacity to handle the reports and
investigations.
The personal data and other information entered into the whis-
tleblowing system is handled with absolute confidentiality and in the
manner required by the privacy legislation. The personal data in the
whistleblowing system is protected against unauthorized access.
All whistleblowers are protected against any form of retaliation.
Anonymous reports are treated with the same level of importance as
named reports.
Nokian Tyres’ employees have been informed of the whistleblowing
channel via internal communication channels. In addition, information
on the whistleblowing channel is communicated as part of Nokian
Tyres Code of Conduct e-training, which is included in the induction
training of all new employees.
Nokian Tyres is subject to legal requirements under national law
transposing Directive (EU) 2019/1937.
G1-2 Management of relationships with suppliers
Nokian Tyres has standard payment terms, and there is no separate
policy to prevent late payments. However, the basis of the procure-
ment process is that justified invoices are paid on time.
Requiring a commitment to ethical business and sustainability from
suppliers promotes both environmental and social responsibility
in the supply chain. The most important policies that drive this
development are Nokian Tyres Supplier Code of Conduct and Nokian
Tyres’ Sustainable Natural Rubber Policy. They are discussed in more
detail under the topic “Workers in the value chain”. In Nokian Tyres
Management Team, the Senior Vice President, Operation Excellence
is accountable for the implementation of these supply chain related
policies.
Nokian Tyres checks the backgrounds of all new suppliers accord-
ing to the Due Diligence process and assesses the possible risks
attached to the suppliers before supplier approval. The assessment
model has four different categories: quality, sustainability (covering
environmental, social and governance criteria), business/strategic
criticality, and safety at work. Actions are taken with all new suppliers
that are classified as critical or medium critical in any of the four
categories in the classification model. The actions are, for example,
sustainability on-site audits, desk assessments and requesting a
management system certification in terms of quality, environment,
or safety. Potential risks identified with desk assessments are addi-
tionally confirmed and verified through on-site audits. The Supplier
Risk Analysis Process is also presented in more detail under the topic
“Workers in the value chain”.
G1-5 Advancing regulation related to tire safety
and sustainability
Nokian Tyres’ business is guided by the ethical principles presented
in the Code of Conduct, which states that Nokian Tyres does not
provide monetary or in-kind support to political parties or groups or
individual politicians.
Every employee must adhere to the Code of Conduct. Participation
in interest representation through memberships is conducted
only in strict compliance with applicable laws, the Code of Conduct
and related policies and procedures. Nokian Tyres is registered
with the European Transparency Register (registration number
604107415108-75).
For the management of the company’s lobbying activities and trade
association memberships, the guiding principles are the following:
lobbying work is transparent and characterized by accurate contribu-
tion of the company’s technical expertise and knowledge concerning
the tire industry and other related sectors, with a focus on products,
safe and sustainable mobility, and innovation.
Nokian Tyres is a member of certain industry and other associations,
and of national and international advocacy organizations. These
memberships also help Nokian Tyres identify new product develop-
ment and business opportunities early on and create competitive
business conditions that are sustainable over the long term.
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In 2024, the company’s membership fees for trade associations and
contributions to lobbying activities totaled 1,271,640 euros globally.
The three largest fees were paid to the U.S. Tire Manufacturers'
Association (USTMA), European Tyre and Rubber Manufacturers'
Association (ETRMA) and Finnish Rubber Manufacturers’ Association.
Two biggest contributions for lobbying topics were related to tire
abrasion and tire noise. The project related to tire abrasion is related
to Nokian Tyres’ material impact regarding pollution, as the project
aims for reducing road transport emissions by setting global tire abr-
asion limits that are based on a reliable tire test method. The indoor
drum method project aims to reduce measurement uncertainty of
the pass-by noise field test by transferring testing to indoor facilities.
Membership fees and interest representation
Euros 2024
Political funding and in-kind giving provided
to parties and politicians, and spending related
to ballot measures or referendums 0
Three largest membership fees of trade associations,
including industry associations and business
associations:
USTMA (U.S. Tire Manufacturers' Association) 322,604
ETRMA (European Tyre and Rubber Manufacturers'
Association) 109,939
Finnish Rubber Manufacturers' Association 104,415
Membership fees of trade associations (total) 882,926
Two largest contributions for particular topics:
ETRMA: Tyre Abrasion Validation 236,720
ETRTO: Indoor drum method 48,153
Total contributions for lobbying and
interest representation 388,714
G1-6 Payment practices
The standard payment term in Nokian Tyres’ general terms and
conditions for purchases is 60 days net and for raw material
purchases 90 days net. In the case of smaller suppliers, for example,
the payment terms are reconsidered when necessary. 85 percent of
the invoices are paid aligned with these standard terms. Invoices for
raw materials account for approximately 16 percent of Nokian Tyres’
annual invoices by value.
In 2024, the average time it takes to pay an invoice, starting from the
date when the contractual or statutory payment term begins, was 46
days. The payment term has been calculated as a weighted average
based on the supplier invoices paid during the review period. At the
end of 2024, there were no outstanding legal proceedings for late
payments.
ADDITIONAL, NON-MATERIAL INFORMATION
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ESRS content index
ESRS Standard Disclosure Requirement Page reference
General disclosures
ESRS 2 BP-1 – General basis for preparation of the sustainability statement 39
BP-2 – Disclosures in relation to specific circumstances 40
GOV-1 – The role of the administrative, management and supervisory bodies 41
GOV-2 – Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies 43
GOV-3 – Integration of sustainability-related performance in incentive schemes 44
GOV-4 – Statement on due diligence 44
GOV-5 – Risk management and internal controls over sustainability reporting 45
SBM-1 – Strategy, business model and value chain 45
SBM-2 – Interests and views of stakeholders 48
SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 50
IRO-1 – Description of the process to identify and assess material impacts, risks and opportunities 60
IRO-2 – Disclosure requirements in ESRS covered by the undertaking’s sustainability statement 63
Climate Change
ESRS E1 ESRS 2 GOV-3 – Integration of sustainability-related performance in incentive schemes 44
E1-1 – Transition plan for climate change mitigation 73
ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 73
ESRS 2 IRO-1 – Description of the processes to identify and assess material climate-related impacts, risks and opportunities 60
E1-2 – Policies related to climate change mitigation and adaptation 74
E1-3 – Actions and resources in relation to climate change policies 74
E1-4 – Targets related to climate change mitigation and adaptation 75
E1-5 – Energy consumption and mix 76
E1-6 – Gross Scopes 1, 2, 3 and Total GHG emissions 77
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Pollution
ESRS E2 ESRS 2 IRO-1 – Description of the processes to identify and assess material pollution-related impacts, risks and opportunities 60
E2-1 – Policies related to pollution 81
E2-2 – Actions and resources related to pollution 81
E2-3 – Targets related to pollution 82
E2-4 – Pollution of air, water and soil 84
E2-5 – Substances of concern and substances of very high concern 84
E2-6 – Financial effects from material pollution-related impacts, risks and opportunities 84
Water and marine resources
ESRS E3 ESRS 2 IRO-1 – Description of the process to identify and assess material impacts,
risks and opportunities
60
Biodiversity and ecosystems
ESRS E4 E4-1 – Transition plan and consideration of biodiversity and ecosystems in strategy and business model 86
ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 86
ESRS 2 IRO-1 – Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks, dependencies and
opportunities
60
E4-2 – Policies related to biodiversity and ecosystems 86
E4-3 – Actions and resources related to biodiversity and ecosystems 87
E4-4 – Targets related to biodiversity and ecosystems 88
Resource use and circular economy
ESRS E5 ESRS 2 IRO-1 – Description of the processes to identify and assess material resource use and circular economy-related impacts, risks and
opportunities
60
E5-1 – Policies related to resource use and circular economy 90
E5-2 – Actions and resources related to resource use and circular economy 90
E5-3 – Targets related to resource use and circular economy 92
E5-4 – Resource inflows 93
E5-5 – Resource outflows 93
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Own workforce
ESRS S1 ESRS 2 SBM-2 – Interests and views of stakeholders 48
ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 96
S1-1 – Policies related to own workforce 97
S1-2 – Processes for engaging with own workforce and workers’ representatives about impacts 99
S1-3 – Processes to remediate negative impacts and channels for own workforce to raise concerns 100
S1-4 – Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities
related to own workforce, and effectiveness of those actions
101
S1-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 102
S1-6 – Characteristics of the undertaking’s employees 103
S1-7 – Characteristics of non-employees in the undertaking’s own workforce 104
S1-8 – Collective bargaining coverage and social dialogue 104
S1-9 – Diversity metrics 104
S1-10 – Adequate wages 105
S1-11 – Social protection 105
S1-13 – Training and skills development metrics 105
S1-14 – Health and safety metrics 106
S1-15 – Work-life balance metrics 106
S1-16 – Remuneration metrics (pay gap and total remuneration) 106
S1-17 – Incidents, complaints and severe human rights impacts 107
Workers in the value chain
ESRS S2 ESRS 2 SBM-2 – Interests and views of stakeholders 48
ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 109
S2-1 – Policies related to value chain workers 109
S2-2 – Processes for engaging with value chain workers about impacts 113
S2-3 – Processes to remediate negative impacts and channels for value chain workers to raise concerns 113
S2-4 – Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities
related to value chain workers, and effectiveness of those actions
113
S2-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 114
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Consumers and end users
ESRS S4 ESRS 2 SBM-2 – Interests and views of stakeholders 48
ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 116
S4-1 – Policies related to consumers and end users 117
S4-2 – Processes for engaging with consumers and end users about impacts 118
S4-3 – Processes to remediate negative impacts and channels for consumers and end users to raise concerns 119
S4-4 – Taking action on material impacts on consumers and end users, and approaches to managing material risks and pursuing material
opportunities related to consumers and end users, and effectiveness of those actions
119
S4-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 121
Business conduct
ESRS G1 ESRS 2 GOV-1 – The role of the administrative, management and supervisory bodies 41
ESRS 2 IRO-1 – Description of the processes to identify and assess material impacts, risks and opportunities 60
G1-1 – Business conduct policies and corporate culture 124
G1-2 – Management of relationships with suppliers 125
G1-5 – Political influence and lobbying activities 125
G1-6 – Payment practices 126
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List of datapoints in cross-cutting and topical standards
that derive from other EU legislation
Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Material/ Not material Page reference
ESRS 2 GOV-1 Board's gender diversity ratio 21 d Indicator number 13 of
Table #1 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Material 41
ESRS 2 GOV-1 Percentage of independent board
members 21 e
Delegated Regulation (EU)
2020/1816, Annex II
Material 41
ESRS 2 GOV-4 Statement on due diligence
paragraph 30
Indicator number 10 of
Table #3 of Annex 1
Material 44
ESRS 2 SBM-1 Involvement in activities related to
fossil fuel activities paragraph 40 d i
Indicators number 4
Table #1 of Annex 1
Article 449a Regulation (EU)
No 575/2013; Commission
Implementing Regulation (EU)
2022/2453 Table 1: Qualitative
information on Environmental
risk and Table 2: Qualitative
information on Social risk
Delegated Regulation (EU)
2020/1816, Annex II
Not material -
ESRS 2 SBM-1 Involvement in activities related to
chemical production paragraph 40 d ii
Indicator number 9
Table #2 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Not material -
ESRS 2 SBM-1 Involvement in activities related to
controversial weapons paragraph 40 d iii
Indicator number 14
Table #1 of Annex 1
Delegated Regulation (EU)
2020/1818, Article 12(1) Delegated
Regulation (EU) 2020/1816, Annex II
Not material -
ESRS 2 SBM-1 Involvement in activities related to
cultivation and production of tobacco paragraph
40 d iv
Delegated Regulation (EU)
2020/1818, Article 12(1) Delegated
Regulation (EU) 2020/1816, Annex II
Not material -
ESRS E1-1 Transition plan to reach climate neutrality
by 2050 paragraph 14
Regulation (EU) 2021/1119,
Article 2(1)
Material 73
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Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Material/ Not material Page reference
ESRS E1-1 Undertaking is excluded from EU Paris-
aligned Benchmarks 16 g
Article 449a Regulation (EU)
No 575/2013; Commission
Implementing Regulation (EU)
2022/2453 Template 1: Banking
book-Climate Change transition
risk: Credit quality of exposures
by sector, emissions and residual
maturity
Delegated Regulation (EU)
2020/1818, Article12.1 (d) to (g), and
Article 12.2
Material 73
ESRS E1-4 GHG emission reduction targets 34 Indicator number 4
Table #2 of Annex 1
Article 449a Regulation (EU)
No 575/2013; Commission
Implementing Regulation (EU)
2022/2453 Template 3: Banking
book – Climate change transition
risk: alignment metrics
Delegated Regulation (EU)
2020/1818, Article 6
Material 75
ESRS E1-5 Energy consumption from fossil sources
disaggregated by sources (only high climate impact
sectors paragraph 38
Indicator number 5
Table #1 and Indicator n.
5 Table #2 of Annex 1
Material 76
ESRS E1-5 Energy consumption and
mix paragraph 37
Indicator number 5
Table #1 of Annex 1
Material 76
ESRS E1-5 Energy intensity associated with activities
in high climate impact sectors paragraphs 40 to 43
Indicator number 6
Table #1 of Annex 1
Material 76
ESRS E1-6 Gross Scope 1, 2, 3 and
total GHG emissions paragraph 44
Indicators number 1 and
2 Table #1 of Annex 1
Article 449a; Regulation (EU)
No 575/2013; Commission
Implementing Regulation (EU)
2022/2453 Template 1: Banking
book – Climate change transition
risk: Credit quality of exposures
by sector, emissions and residual
maturity
Delegated Regulation (EU)
2020/1818, Article 5(1), 6 and 8(1)
Material 77
ESRS E1-6 GHG emissions intensity
paragraphs 53 to 55
Indicators number 3
Table #1 of Annex 1
Article 449a Regulation (EU)
No 575/2013; Commission
Implementing Regulation (EU)
2022/2453 Template 3: Banking
book – Climate change transition
risk: alignment metrics
Delegated Regulation (EU)
2020/1818, Article 8(1)
Material 78
ESRS E1-7 GHG removals and
carbon credits paragraph 56
Regulation (EU) 2021/1119,
Article 2(1)
Not material -
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Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Material/ Not material Page reference
ESRS E1-9 Exposure of the benchmark portfolio to
climate-related physical risks paragraph 66
Delegated Regulation (EU)
2020/1818, Annex II Delegated
Regulation (EU) 2020/1816, Annex II
Material Phase-in
ESRS E1-9 Disaggregation of monetary amounts by
acute and chronic physical risk paragraph 66 a
ESRS E1-9 Location of significant assets at material
physical risk paragraph 66 c
Article 449a Regulation (EU)
No 575/2013; Commission
Implementing Regulation (EU)
2022/2453 paragraphs 46 and
47; Template 5: Banking book
- Climate change physical risk:
Exposures subject to physical risk.
Material Phase-in
ESRS E1-9 Breakdown of the carrying value of its real
estate assets by energy efficiency classes 67 c
Article 449a Regulation (EU)
No 575/2013; Commission
Implementing Regulation (EU)
2022/2453 paragraph 34;Template
2:Banking book -Climate change
transition risk: Loans collateralised
by immovable property - Energy
efficiency of the collateral
Material Phase-in
ESRS E1-9 Degree of exposure of the portfolio to
climate-related opportunities paragraph 69
Delegated Regulation (EU)
2020/1818, Annex II
Material Phase-in
ESRS E2-4 Amount of each pollutant listed in
Annex II of the E-PRTR Regulation (European
Pollutant Release and Transfer Register)
emitted to air, water and soil, paragraph 28
Indicator number 8
Table #1 of Annex 1
Indicator number 2
Table #2 of Annex 1
Indicator number 1 Table
#2 of Annex 1 Indicator
number 3 Table #2 of
Annex 1
Material 84
ESRS E3-1 Water and marine resources paragraph 9 Indicator number 7
Table #2 of Annex 1
Not material -
ESRS E3-1 Dedicated policy paragraph 13 Indicator number 8
Table 2 of Annex 1
Not material -
ESRS E3-1 Sustainable oceans and seas paragraph 14 Indicator number 12
Table #2 of Annex 1
Not material -
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Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Material/ Not material Page reference
ESRS E3-4 Total water recycled and reused
paragraph 28 c
Indicator number 6.2
Table #2 of Annex 1
Not material -
ESRS E3-4 Total water consumption in m3 per net
revenue on own operations paragraph 29
Indicator number 6.1
Table #2 of Annex 1
Not material -
ESRS2 SBM-3 - E4 paragraph 16 a i Indicator number 7
Table #1 of Annex 1
Material 86
ESRS2 SBM-3 - E4 paragraph 16 b Indicator number 10
Table #2 of Annex 1
Material 86
ESRS2 SBM-3 - E4 paragraph 16 c Indicator number 14
Table #2 of Annex 1
Material 86
ESRS E4-2 Sustainable land or agriculture practices
or policies paragraph 24 b
Indicator number 11
Table #2 of Annex 1
Material 87
ESRS E4-2 Sustainable oceans or seas practices or
policies paragraph 24 c
Indicator number 12
Table #2 of Annex 1
Not material -
ESRS E4-2 Policies to address deforestation
paragraph 24 d
Indicator number 15
Table #2 of Annex 1
Material 87
ESRS E5-5 Non-recycled waste paragraph 37 d Indicator number 13
Table #2 of Annex 1
Not material -
ESRS E5-5 Hazardous waste and radioactive waste
paragraph 39
Indicator number 9
Table #1 of Annex 1
Not material -
ESRS2 SBM-3 - S1 Risk of incidents of forced labour
paragraph 14 f
Indicator number 13
Table #3 of Annex I
Not material -
ESRS2 SBM-3 - S1 Risk of incidents of child labour
paragraph 14 g
Indicator number 12
Table #3 of Annex I
Not material -
ESRS S1-1 Human rights policy commitments
paragraph 20
Indicator number 9
Table #3 and Indicator
number 11 Table #1 of
Annex I
Material 97
ESRS S1-1 Due diligence policies on issues
addressed by the fundamental International Labor
Organisation Conventions 1 to 8, paragraph 21
Delegated Regulation (EU)
2020/1816, Annex II
Material 97
ESRS S1-1 processes and measures for preventing
trafficking in human beings paragraph 22
Indicator number 11
Table #3 of Annex I
Material 97
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Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Material/ Not material Page reference
ESRS S1-1 workplace accident prevention policy or
management system paragraph 23
Indicator number 1 Table
#3 of Annex I
Material 98
ESRS S1-3 Grievance/complaints handling
mechanisms paragraph 32 c
Indicator number 5
Table #3 of Annex I
Material 100
ESRS S1-14 Number of fatalities and number and rate
of work-related accidents paragraph 88 b and c
Indicator number 2
Table #3 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II
Material 106
ESRS S1-14 Number of days lost to injuries, accidents,
fatalities or illness paragraph 88 e
Indicator number 3
Table #3 of Annex I
Material 106
ESRS S1-16 Unadjusted gender pay gap
paragraph 97 a
Indicator number 12
Table #1 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II
Material 107
ESRS S1-16 Excessive CEO pay ratio paragraph 97 b Indicator number 8
Table #3 of Annex I
Material 107
ESRS S1-17 Incidents of discrimination
paragraph 103 a
Indicator number 7
Table #3 of Annex I
Material 107
ESRS S1-17 Non-respect of UNGPs on Business and
Human Rights and OECD paragraph 104 a
Indicator number 10
Table #1 and Indicator n.
14 Table #3 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818 Art 12 (1)
Material 107
ESRS 2 SBM-3 - S2 Significant risk of child labour or
forced labour in the value chain paragraph 11 b
Indicators number 12
and n. 13 Table #3 of
Annex I
Material 109
ESRS S2-1 Human rights policy commitments
paragraph 17
Indicator number 9
Table #3 and Indicator n.
11 Table #1 of Annex 1
Material 109
ESRS S2-1 Policies related to value chain workers
paragraph 18
Indicator number 11 and
n. 4 Table #3 of Annex 1
Material 109
ESRS S2-1 Non-respect of UNGPs on Business
and Human Rights principles and OECD guidelines
pargraph 19
Indicator number 10
Table #1 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818, Art 12 (1)
Material 109
ESRS S2-1 Due diligence policies on issues addressed
by the fundamental International Labor Organisation
Conventions 1 to 8, paragraph 19
Delegated Regulation (EU)
2020/1816, Annex II
Material 109
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Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Material/ Not material Page reference
ESRS S2-4 Human rights issues and incidents
connected to its upstream and downstream value
chain paragraph 36
Indicator number 14
Table #3 of Annex 1
Material 113
ESRS S3-1 Human rights policy commitments
paragraph 16
Indicator number 9
Table #3 of Annex 1 and
Indicator number 11
Table #1 of Annex 1
Not material -
ESRS S3-1 Non-respect of UNGPs on Business and
Human Rights, ILO principles or and OECD guidelines
paragraph 17
Indicator number 10
Table #1 Annex 1
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818, Art 12 (1)
Not material -
ESRS S3-4 Human rights issues and incidents
paragraph 36
Indicator number 14
Table #3 of Annex 1
Not material -
ESRS S4-1 Policies related to consumers and
end users paragraph 16
Indicator number 9
Table #3 and Indicator
number 11 Table #1 of
Annex 1
Material 117
ESRS S4-1 Non-respect of UNGPs on Business and
Human Rights and OECD guidelines paragraph 17
Indicator number 10
Table #1 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818, Art 12 (1)
Material 117
ESRS S4-4 Human rights issues and incidents
paragraph 35
Indicator number 14
Table #3 of Annex 1
Material 119
ESRS G1-1 United Nations Convention against
Corruption paragraph 10 b
Indicator number 15
Table #3 of Annex 1
Not material -
ESRS G1-1 Protection of whistle- blowers
paragraph 10 d
Indicator number 6
Table #3 of Annex 1
Not material -
ESRS G1-4 Fines for violation of anti-corruption
and anti-bribery laws paragraph 24 a
Indicator number 17
Table #3 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II)
Not material -
ESRS G1-4 Standards of anti-corruption and
anti-bribery paragraph 24 b
Indicator number 16
Table #3 of Annex 1
Not material -
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Statement
Pollution
In the double materiality assessment NO
X
and SO
X
emissions were
identified as non-material. However, Nokian Tyres reports the
following figures to provide transparent information also about these
emissions.
Nokian Tyres’ target for water usage is that municipal (third party)
water withdrawal is below two liters per product kilogram in the tire
factories. Tire factories’ water withdrawal is monitored monthly,
and if necessary, corrective actions are initiated. A global action
plan for reducing water and wastewater generation is also being
implemented. In 2024, municipal (third party) water withdrawal was
2.3 liters per product kilogram in the tire factories.
Emissions to air 2024 2023 2022
NO
X
, t
Tire factory in the US 3.3 2.8 2.0
SO
X
, t
Tire factory in the US 0.6 0.5 0.4
(GRI 305: Emissions 2016. GRI 305–7 Nitrogen oxides (NO
X
), sulfur
oxides (SO
X
))
Water 2024 2023 2022
Cooling water (surface water),
Tire factory in Finland, 1,000 m
3
Withdrawal, Nokianvirta river 7,785.0 9,004.2 9,064.9
Discharge, Nokianvirta river 7,745.3 8,950.8 9,052.8
Municipal water, 1,000 m
3
Tire factory in Finland 81.5 75.1 67.7
Tire factory in the US 156.4 142.2 75.8
Wheel factory in Finland 6.8 6.3 8.5
Water discharge, sewage, 1,000 m
3
Tire factory in Finland 118.4 128.5 79.8
Tire factory in the US 138.2 97.3 74.1
Wheel factory in Finland 6.8 6.3 8.5
(GRI 303: Water and effluents 2018. 303–3 Water withdrawal, 303–4
Water discharge)
ADDITIONAL, NON-MATERIAL INFORMATION
Water and wastewater
As mentioned in ESRS 2 IRO-1, the topic Water and marine resources
was assessed non-material. In Nokian Tyres’ operations, municipal
water is mainly used for process cooling in a circular system, and
after usage it is delivered to a wastewater treatment plant. Regular
samples are taken from the cooling water and from the wastewater
conveyed to the municipal treatment plant in order to verify the
water quality. Both the wastewater conveyed into the municipal
sewage system and the cooling water has been practically clean.
In the tire factory in Finland, manufacturing processes use large
quantities of cooling water due to the cooling system being different
from the system in the US factory. In Finland, surface water is taken
from the nearby Nokianvirta river for cooling and it is discharged
back into the river after use. The cooling water has no contact with
production chemicals at any stage and, therefore, does not become
contaminated.
Additional
sustainability
disclosures
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Statement
ADDITIONAL, NON-MATERIAL INFORMATION
Resource outflows (in t) 2024 2023 2022
Waste generated
Hazardous waste diverted from disposal 344 218 147
Hazardous waste diverted from disposal due to preparation for reuse - - -
Hazardous waste diverted from disposal due to recycling 344 218 147
Hazardous waste diverted from disposal due to other recovery operations - - -
Non-hazardous waste diverted from disposal 7,250 5,604 3,916
Non-hazardous waste diverted from disposal due to preparation for reuse 1,108 145 144
Non-hazardous waste diverted from disposal due to recycling 6,080 5,400 3,696
Non-hazardous waste diverted from disposal due to other recovery operations 62 59 76
Hazardous waste directed to disposal 19 62 87
Hazardous waste directed to disposal by incineration 19 62 87
Hazardous waste directed to disposal by landfilling - - -
Hazardous waste directed to disposal by other disposal operations - - -
Non-hazardous waste directed to disposal 3,749 3,678 3,164
Non-hazardous waste directed to disposal by incineration 32 54 84
Non-hazardous waste directed to disposal by energy recovery 3,717 3,624 3,080
Non-hazardous waste directed to disposal by landfilling - - -
Non-hazardous waste directed to disposal by other disposal operations - - -
Non-recycled waste 3,768 3,740 3,250
Percentage of non-recycled waste 33% 39% 44%
Total waste (t) 11,362 9,562 7,314
(GRI 306: Waste 2020. 306–3 Waste generated, 306–4 Waste diverted from disposal)
Waste
In the double materiality assessment waste was identified as
non-material. All Nokian Tyres' tire production waste is utilized, and
there has been no waste to landfill from tire production after 2021.
Thus, waste does not cause material impacts, risks, or opportunities.
The table below shows the key figures regarding Nokian Tyres’ tire
factory waste disposal in Finland and in the US.
138
CORPORATE
GOVERNANCE
STATEMENT
WHEN LEARNING
HOW TIRES ARE MADE
THERE IS ALWAYS
SOMETHING NEW TO
DISCOVER
MAKING THE WORLD SAFER,
OVER AND OVER AGAIN
Launch team ramping up the Romania factory
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Financial
Statements
Remuneration
Report
Year 2024 Corporate Governance
Statement
I Introduction
Nokian Tyres plc (Nokian Tyres or Company) complies without
deviation with the Finnish Corporate Governance Code (Code) in
force, adopted by the Securities Market Association. The Code
is available in its entirety at www.cgfinland.fi/en/corporate-
governance-code. The Company’s Board of Directors has approved
the Corporate Governance Statement on February 4, 2025.
The Corporate Governance Statement will be published as part of
the Report by the Board of Directors in the Annual Report 2024. This
Corporate Governance Statement and updated information about
the governance and remuneration of the Company is available on
the Company’s website at company.nokiantyres.com/investors/
corporate-governance.
Nokian Tyres’ corporate governance is based on the regulatory
framework and administrative organization described in the pictures
on the right. The Company’s auditor verifies that the Corporate
Governance Statement and its related descriptions of the internal
reporting controls and risk management correspond to the financial
reporting process.
Corporate Governance Statement 2024
Audit Committee
General Meeting
Board of Directors
President and CEO
Management
Team
Shareholders’
Nomination Board
Internal Audit
Investment
Committee
People and
Sustainability
Committee
Nokian Tyres’ administrative organization
Auditor
Assurance of
sustainability
reporting
External framework
• Finnish Limited Liability
Companies Act
• Laws and regulations
relating to publicly listed
companies in Finland
• Corporate Governance
Code published by
the Securities Market
Association
• Rules and regulations of
the Nasdaq Helsinki, the
European Securities and
Markets Authority, and
the Financial Supervisory
Authority
Internal framework
• Articles of Association
• Code of Conduct
• Charters of the Board of
Directors, the Committees
and the Internal Audit
• Nokian Tyres’ policies,
guidelines and instructions
Nokian Tyres’ regulatory framework
for Corporate Governance
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Year 2024 Corporate Governance
Statement
141
II Governance bodies
Nokian Tyres is a Finnish limited liability company, and its registered
place of business is Nokia, Finland. The parent company Nokian
Tyres plc and its subsidiaries form the Nokian Tyres Group (Group).
The administrative bodies of Nokian Tyres, i.e., the General Meeting,
the Board of Directors, and the President and CEO, are responsible
for the administration and operation of the Group. The General
Meeting elects the members of the Board of Directors, and the
Chair and possibly the Deputy Chair of the Board of Directors upon
the proposal by the Shareholders’ Nomination Board. The Board of
Directors appoints the Company’s President and CEO. The President
and CEO is assisted by the Group’s Management Team in leading the
Company’s operations.
General Meeting
Nokian Tyres’ highest decision-making power is held by the General
Meeting, whose tasks and procedures are outlined in the Finnish
Limited Liability Companies Act and the Articles of Association.
The Annual General Meeting decides, among others, the following
matters:
• adoption of the Company’s annual accounts
• profit distribution
• discharging the Board of Directors and the President and CEO
from liability
• number of members in the Board of Directors, the election of the
Board members and the auditor, and their remuneration
• amendments to the Articles of Association, share issues, and
acquisition of the Company’s own shares
• adoption of the Remuneration Policy at least every four years and
the Remuneration Report annually. Resolutions of the General
Meeting regarding the policy and the report are advisory.
The Annual General Meeting is held by the end of May of each year
on a date determined by the Board of Directors, either in Nokia,
Tampere, Helsinki or entirely without a meeting venue, as virtual
meeting. In virtual meetings, shareholders may exercise their full
decision-making power, including the right to present questions and
to vote, by using remote connection and technical means.
An Extraordinary General Meeting is called whenever the Board of
Directors considers this to be necessary or if an auditor or a group of
shareholders with a holding of a total of at least one-tenth of all the
shares in the Company requires it in writing to address a particular
issue.
A shareholder may request the General Meeting to discuss a specific
issue falling within the competence of the General Meeting, if they
send a written request to the Board of Directors before the deadline
posted on Nokian Tyres’ website for submitting such requests.
In 2024, this date was March 8, 2024. No requests were submitted by
the shareholders.
Notice of a General Meeting is published as a stock exchange release
and on the Company’s website. The notice sets out the agenda of
the meeting.
Nokian Tyres’ Articles of Association are available on the Company’s
website at company.nokiantyres.com/investors/corporate-
governance/articles-of-association.
Shareholders are entitled to participate in the General Meeting
if they are registered in the Company’s shareholders’ register,
maintained by Euroclear Finland Ltd, on the record date separately
indicated by the Company. A holder of nominee registered shares
can be temporarily registered in the shareholders’ register of the
Company for purposes of participation in the General Meeting.
The following persons are usually present in the Annual General
Meeting: the Chair of the Board of Directors, the Board members,
the President and CEO, members of the Group’s Management
Team and the auditor. Board member candidates shall be present
at the General Meeting deciding on their election, unless there is a
particularly compelling reason for their absence.
The Annual General Meeting for 2024 was held on April 30,
2024 in Helsinki, Finland.
The meeting
• adopted the Financial Statements
• discharged the Board of Directors and the President and
CEO from liability for the fiscal year 2023
• adopted Nokian Tyres’ Remuneration Report for governing
bodies and the Remuneration Policy, which shall be applied
until the 2028 Annual General Meeting, unless a revised
policy is presented to the General Meeting before that
• decided on the payment of dividend
• authorized the Board of Directors to resolve on the second
installment of dividend
• decided on the composition of the Board of Directors and
their remuneration and the election of the auditor and its
remuneration
• authorized the Board of Directors to decide on the
repurchase of the Company’s own shares as well as on the
issuance of shares and special rights entitling to shares
and to decide on donations.
The documents related to the Annual General Meeting are
available on the Company’s website at company.nokiantyres.
com/investors/corporate-governance/annual-general-
meeting.
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Financial
Statements
Remuneration
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Year 2024 Corporate Governance
Statement
Shareholders’ Nomination Board
Nokian Tyres’ Shareholders’ Nomination Board (Nomination Board)
was established by the decision of the Annual General Meeting in
2020. According to the Charter of the Nomination Board, the duties
of the Nomination Board consist of
• the preparation of proposals to the General Meeting concerning
the number, composition, Chair and possible Deputy Chair of the
Board of Directors
• the preparation of proposal for remuneration of the members of
the Board of Directors and the Board committees
• seeking prospective successor candidates for the members of
the Board of Directors.
The Nomination Board consists of the representatives of Nokian
Tyres’ four largest shareholders, registered in Euroclear on the first
banking day of June, who accept the assignment. In addition, the
Nomination Board includes the Chair of the Board of Directors. The
Nomination Board gives its proposal to the Board annually no later
than January 31 preceding the next Annual General Meeting.
The members of the Nomination Board are not entitled to
remuneration from the Company on the basis of their membership
unless otherwise decided by the General Meeting.
The following members were appointed to the Nomination Board
in 2024:
• Pauli Anttila (Investment Director, Solidium Oy), appointed by
Solidium Oy
• Timo Sallinen (Director, Head of Listed Securities, Varma Mutual
Pension Insurance Company), appointed by Varma Mutual Pension
Insurance Company
• Mikko Mursula (Deputy CEO, Investments, Ilmarinen Mutual
Pension Insurance Company), appointed by Ilmarinen Mutual
Pension Insurance Company
• Marie Karlsson (Chief Investment Officer, Nordic, Finnish and
Swedish Equities at Nordea Asset Management) appointed by
Nordea funds
• Jukka Hienonen, Chair of the Board of Directors, Nokian Tyres plc.
In January 2025, Solidium Oy appointed Petter Söderström as a
member of the Nomination Board after Pauli Anttila left the service
of Solidium Oy.
The proposals by the Nomination Board to the Annual General
Meeting 2025 were published on January 17, 2025.
Before this, the Nomination Board had five meetings. The members’
attendance rate was 100%. The Nomination Board had four male
members and one female member.
The Charter of the Nomination Board is available at company.
nokiantyres.com/Investors/corporate governance/Shareholders’
nomination board/charter.
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Financial
Statements
Remuneration
Report
Year 2024 Corporate Governance
Statement
Board of Directors
Operation of the Board of Directors
The Board of Directors is responsible for the Nokian Tyres’ corporate
governance and the appropriate organization of its operations
pursuant to the Finnish Limited Liability Companies Act and other
regulations. The Board of Directors holds the general authority
in company-related issues, unless other Company bodies have
the authority under the applicable legislation or the Articles of
Association. The policies and key tasks of the Board of Directors are
defined in the Finnish Limited Liability Companies Act, the Articles
of Association, and the Board of Directors’ Charter. The key tasks
include:
• approving Consolidated Financial Statements, Half Year Reports
and Interim Reports
• presenting matters to the General Meeting
• appointing and dismissing the President and CEO
• organizing of financial control.
In addition, the Board of Directors reviews and decides on matters
of principle as well as issues that carry financial and business
significance, such as:
• the Group’s strategy and financial objectives
• the Group’s budget, and investment plans
• the Group’s risk management and reporting procedures
• decisions concerning the structure and organization of the Group
• significant individual investments, acquisitions, divestments, and
reorganizations
• the Group’s financing policies
• reward and incentive schemes for the Group’s management
• monitoring compliance with the applicable legal and regulatory
requirements and the corporate policies, such as Code of
Conduct, approved by the Board of Directors
• appointing Board committees
• monitoring and evaluating the actions of the President and CEO.
The President and CEO ensures that the Board members have the
necessary and sufficient information on the Company’s operations.
The Board of Directors assesses its activities and operating methods
by carrying out a self-evaluation once a year.
Composition of the Board of Directors
According to the Articles of Association of Nokian Tyres, the Board
of Directors comprises no fewer than four and no more than nine
members. The proposal regarding the composition and remuneration
of the Board of Directors is prepared by the Nomination Board
for the General Meeting. The number of Board members and the
composition of the Board of Directors shall be such that the Board is
capable of efficiently carrying out its tasks, while taking into account
the requirements set by the Company’s operations and its stage of
development. The elected Board members must be qualified for the
task and able to devote enough time for the Board duties.
Members of the Board of Directors are elected at the Annual General
Meeting for a one-year term of office that begins after the closing
of the Annual General Meeting and ends at the closing of the next
Annual General Meeting. In 2024, the Annual General Meeting elected
nine Board members and appointed the Chair and the Deputy Chair
of the Board of Directors upon the proposal by the Nomination
Board.
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Jukka Hienonen
Chair of the Board
b. 1961, male
Member of the Board since 2020
Member of the People and
Sustainability Committee.
Member of the Shareholders’
Nomination Board.
Education: Master of Science
(Economics)
Main occupation: Board professional
Key positions of trust: –
Shareholdings: 52,100*
Pekka Vauramo
Deputy Chair of the Board
b. 1957, male
Member of the Board since 2018
Member of the Investment
Committee.
Education: Master of Science
(Technology)
Main occupation: Board professional
Key positions of trust: Chair of
the Board: Huhtamäki Oyj
Shareholdings: 12,863*
Elina Björklund
b. 1970, female
Member of the Board since 2024
Chair of the People and
Sustainability Committee.
Education: M.Sc. (Econ), IDBM pro
(International Design Business
Management -program)
Main occupation: CEO, EBIT Oy
Key positions of trust:
Chair of the Board: Reima Group
Ltd., Helsinki School of Economics
Support Foundation and Corporate
Advisory Board. Member of the
Board: Taaleri Plc, Urlus Foundation.
Chair of the commission: LSR
Foundation of Economic Education
Foundation. Member of the
commission: EVA Finnish Business
and Policy Forum.
Shareholdings: 3,767*
Markus Korsten
b. 1970, male
Member of the Board since 2023
Member of the Investment
Committee.
Education: Study of Applied Physics,
Dipl. Ing. (FH)
Main occupation: Board professional
Key positions of trust: Member of
the Board: Zefyron GmbH.
Shareholdings: 5,037*
Board of Directors, December 31, 2024
Susanne Hahn
b. 1976, female
Member of the Board since 2022
Member of the People and
Sustainability Committee.
Education: University Diploma of
Economics
Main occupation: Founding and
Managing Partner of SKV Invest &
affiliates
Key positions of trust:
Chair of the Board: Zefyron GmbH.
Member of the Board: Klingele
Paper & Packaging SE & Co KG,
HyperPark Ltd., SENTImotion GmbH,
1886Technologies GmbH and Invest
BW — Innovation & Investment
funding program of the state of
Baden-Württemberg.
Shareholdings: 13,679*
*Including own holdings and controlled entities.
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Jouko Pölönen
b. 1970, male
Member of the Board since 2021
Chair of the Audit Committee.
Education: M.Sc. (Econ & Bus. Adm.),
Authorized Public Accountant, eMBA
Main occupation: President and CEO,
Ilmarinen Mutual Pension Insurance
Company
Key positions of trust: Chair of the
Board: The Finnish Foundation for
Share Promotion. Member of the
Board: The Finnish Pension Alliance
TELA, Finance Finland FFI and
Excellence Finland.
Shareholdings: 32,457*
Reima Rytsölä
b. 1969, male
Member of the Board since 2023
Member of the Audit Committee.
Education: M.Soc.Sc (Econ)
Main occupation: CEO, Solidium Oy
Key positions of trust:
Member of the Board: Metso
Corporation and Stora Enso Oyj.
Shareholdings: 10,037*
More detailed information concerning the Board members is available on the Company’s website at company.
nokiantyres.com/investors/corporate-governance/board-of-directors.
Christopher Ostrander
b. 1968, male
Member of the Board since 2021
Chair of the Investment Committee.
Education: B.Sc. (Mechanical
Engineering); M.Sc. (Engineering
Management); MBA
Main occupations: CEO, CEO8
Consulting
Key positions of trust: Chair of the
Board: Kensington Hill Partners II, LLC,
and Kensington Hill Capital, LLC. Chair
of the Board of Trustees: University
of Findlay. Limited Partner Advisor:
Tamarind Hill Management, LLC.
Strategic Partner: SKV Invest. Board
of Advisors: Bluegrass Alpha Partners.
Shareholdings: 8,427*
Elisa Markula
b. 1966, female
Member of the Board since 2024
Member of the Audit Committee.
Education: Master of Science
(Economics)
Main occupation:
CEO, VR-Group Plc
Key position of trust: Member of
the Board: Finland Chamber of
Commerce (Deputy Chair), Service
Sector Employers Palta (Member of
the Executive Committee)
Member of the Supervisory Board:
Varma Mutual Pension Insurance
Company.
Shareholdings: 2,651*
*Including own holdings and controlled entities.
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Independence of the members of
the Board of Directors
At its organizing meeting, all elected Board members were assessed
by the Board of Directors to be independent of the Company and
of the significant shareholders, except Reima Rytsölä, who was
assessed to be independent of the Company and not independent
of a significant shareholder (Solidium Oy) in accordance with the
recommendation in the Code.
The Board of Directors meetings and members’
attendance at meetings
The Board’s key priorities in 2024 included, among others,
appointment of the new President and CEO, factory investments in
Oradea and Dayton, and topics related to long-term growth strategy.
The Board visited the factory in Oradea, Romania, and the Investment
Committee visited US factory in Dayton, Tennessee.
The Board of Directors convened a total of 12 times in 2024.
Member of the Board
Number of
meetings
Meeting
attendance %
Jukka Hienonen (Chair) 12/12 100%
Pekka Vauramo (Deputy Chair) 12/12 100%
Elina Björklund (Member since*) 9/9 100%
Susanne Hahn 12/12 100%
Markus Korsten 12/12 100%
Veronica Lindholm (Member until*) 4/4 100%
Elisa Markula (Member since*) 9/9 100%
Christopher Ostrander 10/12 83%
Jouko Pölönen 12/12 100%
George Rietbergen (Member until*) 3/4 75%
Reima Rytsölä 12/12 100%
*April 30, 2024
Diversity of the Board of Directors
Nokian Tyres sees diversity as a success factor enabling the
achievement of the Company’s strategic goals and business growth.
In practice, diversity includes factors such as complementary
expertise of the members, their education and experience in
different professional areas and industrial sectors in which the
Group mainly operates, age, nationality and balanced gender
diversity. Leadership experience and personal competencies are
also considered in the composition of the Board of Directors. These
objectives can be achieved with thorough and early preparation
when considering the Board composition.
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The members of the Board of Directors have relevant experience
in the following: CEO experience, tire industry, consumer goods
industry, international experience especially in the Nordic, Central
European and North American markets, financing, corporate risk
management, and corporate governance. The Nomination Board
evaluates the realization of diversity when preparing a proposal for
the composition of the Board of Directors to the General Meeting.
The objectives regarding diversity are considered to be met in
sufficient quantity.
The principles concerning the election of the Board of Directors and
its diversity are available on the Company’s website at company.
nokiantyres.com/investors/corporate-governance/board-of-directors.
Committees of the Board of Directors
The Board of Directors will decide on the committees and their chairs
and members each year. In 2024, the Board of Directors had three
committees: Audit Committee, People and Sustainability Committee
and Investment Committee, which the Board of Directors decided to
establish in its organizing meeting on April 30, 2024.
Each committee must include no fewer than three members
having the competence and expertise necessary for working in the
committee. At least one member of the Audit Committee must have
expertise in accounting or auditing. The majority of the members
of the Audit Committee must be independent of the Company,
and at least one member must be independent of the Company’s
major shareholders. The majority of the members of the People and
Sustainability Committee must be independent of the Company.
Age
30–39, 0
40–49, 1
50–59, 6
60–69, 2
Gender
Female, 3 (33%)
Male, 6 (67%)
Nationality
Finland, 6
Germany, 2
USA, 1
Tenure
1 year, 2
2–3 years, 3
4–5 years, 3
6–7 years, 1
More than 7 years, 0
Information in the graphs reflect the composition of the Board on December 31, 2024.
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People and Sustainability Committee members,
meetings and meeting attendance in 2024
Member of the People and
Sustainability Committee
Number of
meetings
Meeting
attendance %
Veronica Lindholm (Chair until*) 1/1 100%
Elina Björklund (Chair since*) 4/4 100%
Susanne Hahn 5/5 100%
Jukka Hienonen 5/5 100%
Pekka Vauramo (Member until*) 1/1 100%
*April 30, 2024
Investment Committee
The Investment Committee focuses on the Company’s strategic
investments to ensure that they maximize shareholder value.
According to the Committee Charter, the Committee has the
following responsibilities:
• guide, oversee, and review the performance of the Company’s
strategic investment options
• review and provide input to the Company’s strategic investment
options prior to management’s strategic planning session each
year and before presenting to the Board of Directors
• work with management and outside advisors to identify potential
strategic targets for mergers and acquisitions
• evaluate, review, and make recommendations with respect to
other related matters as may be determined by the Committee
.
In addition, the Committee also performs other tasks assigned
to it by the Board of Directors, as well as other matters which the
Committee deems appropriate to prepare and discuss.
The President and CEO and the other members of the Group’s
Management Team may not act as members of the Audit Committee
or the People and Sustainability Committee. The committees have no
independent decision-making power; collective decisions are made
by the Board of Directors, which is responsible for carrying out the
tasks assigned to the committees.
Audit Committee
The Audit Committee assists the Board of Directors in its regulatory
duties and reports to the Board of Directors. According to the
Committee Charter, the Audit Committee
• controls that bookkeeping, financial administration, financing,
internal control, internal auditing, audit of the accounts, risk
management and compliance function are appropriately
arranged in the Company
• follows and assesses the reporting process for Financial
Statements as well as any significant changes in the accounting
policies and the items valued in the balance sheet
• processes the general description of the mechanisms of internal
auditing and risk management of the financial reporting process,
which forms part of the Corporate Governance Statement
• follows the statutory auditing of the financial statement
and the Consolidated Financial Statements and assesses the
independence of the statutory auditor and the offering of
services other than auditing services by the auditor
• handles the auditor’s report and possible audit minutes as well
as the supplementary report presented by the auditor to the
committee
• prepares the draft resolution on selecting the auditor
• monitors and assesses how agreements and other legal
acts between the Company and its related parties meet the
requirements of the ordinary course of business and arm’s length
terms in accordance with applicable laws and regulations.
As a general rule, the Company’s chief auditor participates in the
committee’s meetings.
Audit Committee members, meetings and meeting
attendance in 2024
Member of the Audit Committee
Number of
meetings
Meeting
attendance %
Jouko Pölönen (Chair) 5/5 100%
Elisa Markula (Member since*) 3/3 100%
Christopher Ostrander (Member until*) 2/2 100%
Reima Rytsölä 5/5 100%
*April 30, 2024
People and Sustainability Committee
The main duties and working principles of the People and
Sustainability Committee are defined in a written charter and they
include:
• preparing a proposal to the Board of Directors on the Company’s
President and CEO and on the salary and other incentives paid to
the President and CEO
• preparing a proposal to the Board of Directors on the
nominations, salaries and other incentives of the Group’s
Management Team members
• reviewing and submitting a proposal to the Board of Directors
on the allocation and criteria of the Nokian Tyres share-based
incentive plans and on the other incentive plans
• preparation of the Remuneration Policy and the Remuneration
Report for the Board of Directors and the President and CEO
• preparing sustainability issues for the Board of Directors and
monitoring developments in the operating environment and
regulation relating to sustainability
• preparing and reviewing the Sustainability Statement as part of
the Report by the Board of Directors and Annual Report.
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Investment Committee members, meetings and
meeting attendance in 2024
Member of the Investment
Committee
Number of
meetings
Meeting
attendance %
Christopher Ostrander (Chair) 2/2 100%
Markus Korsten 2/2 100%
Pekka Vauramo 2/2 100%
President and CEO
The President and CEO is responsible for
• conducting the Group’s business and managing the Company
operations in accordance with the Finnish Limited Liability
Companies Act and the instructions and guidelines provided by
the Board of Directors
• preparing the Group’s strategy and objectives for the Board of
Directors
• informing the Board of Directors regarding the development of
the Company’s business and financial situation
• implementing the approved strategy and plans
• ensuring the legal compliance of the Company’s bookkeeping
• arranging reliable asset management.
The President and CEO is elected by the Board of Directors. Jukka
Moisio was the Company’s President and CEO since May 27, 2020.
In a stock exchange release issued on March 27, 2024, Nokian Tyres
plc’s President and CEO Jukka Moisio announced to the Board of
Directors his intention to retire from the Company during 2024. The
Company announced on July 20, 2024, that Paolo Pompei has been
appointed as the new CEO of Nokian Tyres plc. Pompei started in
the position on January 1, 2025. Jukka Moisio continued as CEO until
Pompei’s commencement.
Jukka Moisio
b. 1961, male
Education: Master of Science (Economics), MBA
Position: President and CEO May 27, 2020–December 31, 2024
Key experience:
2008–2019 Huhtamäki Oyj, President and CEO
2004–2008 Ahlstrom Oyj, President and CEO
1991–2004 Ahlstrom Oyj, various management positions
1989–1991 McKinsey & Company, Associate
Key positions of trust:
Chair of the Board: Paulig Oy and Sulapac Oy
Member of the Board: Metsä Board Corporation and
Cargotec (Vice Chair of the Board)
Shareholdings on December 31, 2024
Number of shares
Jukka Moisio, President and CEO 22,921*
*Including own holdings and controlled entities.
Management Team
The Group’s Management Team is responsible for assisting the
President and CEO in preparing the Company’s strategy and in
operative management. Members of the Management Team carry
the main responsibility for their business areas and functions.
The Management Team has no activities based on the applicable
legislation or the Articles of Association. According to the Group’s
meeting practices, the Management Team assembles approximately
12 times per year. In addition to the President and CEO, the heads of
the business units, business areas and functions participate in the
meetings.
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Anna Hyvönen
b. 1968, female
Passenger Car Tyres and Vianor
Education: Licentiate of Science
(Technology)
Shareholdings: 22,010*
Päivi Leskinen
b. 1965, female
Human Resources
Education: Master of Social
Sciences
Shareholdings: 1,182*
Adrian Kaczmarczyk
b. 1971, male
Operation Excellence
Education: Dipl. Ing. Engineering,
Master of Business Administration
Shareholdings: 3,420*
Manu Salmi
b. 1975, male
Heavy Tyres and Nokia Factory
Education: Master of Military Sciences,
Master of Science (Economics),
Master of Business Administration
Shareholdings: 31,657*
Elisa Erkkilä
b. 1967, female
Legal and Compliance
Education: Master of Laws,
Trained on the Bench, Master of
Comparative Laws
Shareholdings: 0*
Jukka Kasi
b. 1966, male
Products and Innovations
Education: Master of Science
(Technology)
Shareholdings: 48,616*
More detailed information concerning the Group’s Management Team is available on the Company’s website at
company.nokiantyres.com/investors/corporate-governance/group-management-team.
Management Team, December 31, 2024
Niko Haavisto
b. 1972, male
Finance
Education: Master of Science
(Economics)
Shareholdings: 11,250*
Jukka Moisio
b. 1961, male
President and CEO
Education: Master of Science
(Economics), Master of Business
Administration
Shareholdings: 22,921*
Päivi Antola
b. 1971, female
Communications, Investor
Relations and Brand
Education: Master of Arts, CEFA
Shareholdings: 5,799*
*Including own holdings and controlled entities.
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III Descriptions of mechanisms of internal control
and risk management
Internal control
The purpose of the Group’s internal control mechanisms is to
ensure that the Company’s operation is in line with the applicable
laws and regulations and the Nokian Tyres’ Code of Conduct. As
regards the financial reporting process, the purpose of the Group’s
internal control mechanisms is to ensure that the financial reports
released by the Company have been compiled in accordance with the
accounting principles applied by the Company and that they contain
essentially correct information on the Group’s financial position,
and to ensure that financial reporting is accurate and reliable.
Nokian Tyres has defined group-level policies and instructions for
the key operative units specified below in order to ensure efficient
and profitable Company operations. Internal controls are specific
mechanisms to manage and mitigate risks.
The Group’s business consists of Passenger Car Tyres, Heavy Tyres,
and Vianor business units. Passenger Car Tyres is further divided
into the following business areas: Nordics, Central Europe, and
North America. Heavy Tyres and Passenger Car Tyres business
units are responsible for their own operations, financial results,
risk management, balance sheet and investments, supported by
different functions. The Group’s sales companies serve as product
distribution channels in local markets.
The Board of Directors is responsible for the functionality of the
internal control mechanisms, which are managed by the Company’s
management and implemented throughout the organization.
Internal control is an integral part of all activities of the Group at
all levels. Nokian Tyres’ operative management bears the main
responsibility for operational control. Every supervisor is obliged to
ensure sufficient control over the activities belonging to his or her
responsibility and to continuously monitor the functionality of the
control mechanisms. The Chief Financial Officer (CFO) is responsible
for organizing financial administration and reporting processes
and the internal control thereof. Finance function is responsible for
internal and external accounting; its tasks include, among others,
producing financial information concerning the different areas and
ensuring the accuracy of this information.
The preparation process of the Consolidated Financial Statements
(IFRS), the related control measures, and the task descriptions and
areas of responsibility related to the reporting process are defined.
The Company’s Finance function produces the consolidations and
information for the group level and the different areas. Each legal
entity within the Group produces its own information in compliance
with the instructions provided and in line with local legislation.
The Group’s Finance function is centrally responsible for the
interpretation and application of financial reporting standards as well
as for monitoring compliance with these standards.
Effective internal control requires sufficient, timely, and reliable
information in order for the Company’s management to be able
to monitor the achievement of targets and the efficiency of the
control mechanisms. This refers to financial information as well
as other kinds of information received through IT systems and
other internal and external channels. The instructions on financial
administration and other matters are shared on the Company’s
intranet, and training is organized for personnel with regard to these
instructions when necessary. Communication with the business units
is continuous. The Company’s financial performance is internally
monitored by means of monthly reporting complemented with
updated forecasts. The financial results are communicated to
Company’s personnel immediately after the official stock exchange
releases have been published.
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Investor relations and communications
The goal of Nokian Tyres’ Investor Relations is to regularly and
consistently provide the stock market with essential, correct,
sufficient, and up-to-date information that is subsequently used to
determine the share value. The operations are based on equality,
openness, and accuracy. More detailed information concerning
the IR and communication principles is available on the Company’s
website at company.nokiantyres.com/investors/investor-relations/
ir-principles.
Risk management
The purpose of the Enterprise Risk Management (ERM) is to ensure
that Nokian Tyres’ management and the Board of Directors have
sufficient information in decision making, both in strategy-setting
and performance-driving, of risks that could have impact on
creating, preserving, and realizing value of Nokian Tyres Group. The
ERM provides a structured framework to proactively manage risks,
protect reputation and business continuity, and enhance decision-
making processes. Its holistic approach considers both financial and
non-financial risks.
The Enterprise Risk Management Policy, approved by the Board
of Directors, defines the framework for ERM and promotes risk
awareness and proper management of risks in the Group. The
management of financial risks is defined on the Treasury Policy
approved by the Board of Directors.
The Group ERM framework is organized into five interrelated
components:
• Governance and Culture
• Strategy and Objective-Setting
• Performance and Risk Assessment
• Review and Revision
• Information, Communication and Reporting.
Nokian Tyres’ Board of Directors, assisted by the Audit Committee,
oversees the Group’s overall enterprise risk management, provides
oversight of the strategy, and carries out governance responsibilities
to support management in achieving strategy and business
objectives under the direction of the Board of Directors.
The President and CEO and the Group’s Management Team hold
overall responsibility for the risk management in the Group.
The ERM is not a separate function but integrated into existing
business processes and practices at all levels of the organization.
Each Business Unit, Business Area and function is responsible for
maintaining sufficient and systematic risk assessment and reporting
on the own responsibility area. The line management is operationally
accountable for managing the most relevant risks as part of its daily
activities and each employee is encouraged to identify, report and
manage the risks within their area of responsibility.
Treasury and Risk Management in Finance coordinates the
overall ERM framework and process, supports the businesses in
implementation and performs specified risk management tasks e.g.
the Group risk review. Treasury and Risk Management is responsible
for improving and maintaining the methods, tools, and reporting
associated with the ERM.
The ERM is part of the general management and internal control
system. The integrated management system complies with the
requirements of international standards.
The Nokian Tyres Group ERM framework is based on the COSO
framework and SFS-ISO 31000 standard and the Code for listed
companies. All operative factories are certified to ISO 9001 (quality),
ISO 14001 (environment), and ISO 45001 (safety) standards. The
Group is committed to the UN Global Compact framework for
responsible and sustainable business practices.
Internal Audit is an outsourced service reporting to the Board of
Directors and providing independent assurance on the effectiveness
of risk management and compliance processes.
The most significant risks and uncertainties known to the Company
are described in the Report by the Board of Directors.
IV Other information provided
Internal audit
Nokian Tyres’ Internal Audit systematically carries out assessments
and audits on the efficiency of risk management, internal
control, and corporate governance processes. Internal Audit is
an independent and objective function aimed at helping the
organization achieve its goals. The principles for Internal Audit have
been confirmed in the Internal Audit Charter and Policy, approved by
the Board of Directors.
The Nokian Tyres Group’s Internal Audit is organized by
outsourcing principle. The outsourced Internal Audit team reports
administratively to the CFO and functionally to the Audit Committee
providing independent assurance on the effectiveness of risk
management and compliance processes. Each year, the Audit
Committee approves the focus areas for Internal Audit.
The operation of Internal Audit covers all business activities,
functions and processes within the Nokian Tyres Group. The audit
assignments are based on the key strategic focus areas of the
Company’s operations and the associated risks. The audit findings,
recommendations and management action plans are presented to
the Audit Committee, followed by ongoing monitoring and follow-up
on the implementation of the management action plans.
In 2024 Internal Audit has performed audits in accordance with the
annual audit plan covering manufacturing locations and Business Area
activities and processes. Internal Audit has also collaborated with
compliance and other assurance functions in Nokian Tyres.
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Related party transactions
Nokian Tyres determines and monitors related parties in accordance
with the International Accounting Standards (IAS 24, Related Party
Disclosures) and other applicable regulations. The Company has
procedures in place to identify and define its related parties and
assesses and monitors related party transactions to ensure that all
conflicts of interest and the Company’s decision-making process are
appropriately taken into account. The Audit Committee monitors
and assesses how agreements and other legal acts between the
Company and its related parties meet the requirements of ordinary
activities and arm’s length terms in accordance with applicable laws
and regulations. The Company’s financial management monitors
and supervises related party transactions as part of the Company’s
normal reporting and monitoring procedures and reports to the
Audit Committee on a regular basis. The Company only has related
party transactions that are a part of normal business, and the
information regarding them is provided in the Annual Report. The
decision-making processes have furthermore been structured in
order to avoid conflict of interests. In case the Company would have
any transactions that are not part of the Nokian Tyres’ ordinary
course of business or are not implemented under arm’s length
terms, such transactions shall be handled by the Audit Committee
and approved by the Board of Directors and provided in the Annual
Report.
Insider management
Nokian Tyres complies with the guidelines for insider trading drawn
up by Nasdaq Helsinki Ltd. Furthermore, the Company has drawn up
separate Insider Guidelines that have been approved by the Board of
Directors and that supplement other insider regulations and include
instructions about insider administration.
Nokian Tyres does not maintain a permanent insider register.
Insiders are identified on a case-by-case basis for specific projects.
Project-specific insider lists are drawn up of people involved in
insider projects of the Company. Persons in possession of insider
information are not allowed to trade in Nokian Tyres’ financial
instruments until the insider project has expired, or it has been
published. Those entered into a project-specific insider list are
notified of their entry into the said list and the duties it entails, as
well as the termination of the insider project.
Nokian Tyres maintains a separate list of persons discharging
managerial responsibilities and their closely associated persons.
In 2024, the persons discharging managerial responsibilities in the
Company, as defined in the Market Abuse Regulation, were the
members of the Board of Directors, the President and CEO and
the CFO.
Persons discharging managerial responsibilities in the Company
are allowed to trade with Nokian Tyres’ financial instruments only
for a period of 30 days after the publication day of the Company’s
Financial Statement Report, Half Year Report, or Interim Report. The
same applies also to the members of the Group’s Management Team
and persons who participate in the preparation, maintaining, and/
or publication of the Company’s financial reports. The said trading
restriction also applies to persons who process financial reporting
and forecasts of the Nokian Tyres Group.
Nokian Tyres’ General Counsel is responsible for the management
of insider matters in the Company and the related communication
(trading restrictions, notification and publication of management
transactions). The CFO is the Group General Counsel’s substitute for
insider matters.
Whistleblowing
The Company has had a whistleblowing channel available since 2011.
In 2024, the channel was renewed, and employees and third parties
can now report any suspected misconduct, any suspected violations
of the Company’s Code of Conduct or other policies or guidelines
through a web-based channel managed by an external service
provider.
Nokian Tyres’ Whistleblowing Policy defines the purpose and scope
of the whistleblowing channel and the principles and processes
governing the review and investigation of reports. All messages
received in the channel are handled confidentially and they are
encrypted. Anonymous reports are allowed. Nokian Tyres tolerates
no retaliation against the reporter. Nokian Tyres’ Whistleblowing
Committee was formed in 2019 to guide and monitor the activities
relating to the whistleblowing channel. All material issues will be
reported to the Audit Committee at least once a year.
Audit
The auditor has an important role as a controlling body appointed
by the shareholders. The audits give shareholders an independent
opinion on how the Financial Statements and Report by the Board
of Directors of the Nokian Tyres have been drawn up and the
accounting and administration of the Company have been managed.
In addition to his duties under the valid regulations, the auditor
reports all audit findings to the Group’s management.
During the financial year 2024, the Company’s auditor was authorized
public accountant firm Ernst & Young Oy with Mikko Järventausta
acting as the Chief Auditor. Ernst and Young Oy also carried out the
assurance of the Company’s sustainability reporting for the financial
year 2024 in accordance with the transitional provisions of the
amended Finnish Companies Act (1252/2023).
The following table presents fees by type paid for the years ended
December 31:
Fees by type paid, EUR 2024 2023
The Group’s audit fees 1,034,000 1,081,000
Fees paid to the auditor for
services other than auditing
services 70,000 24,000
Total 1,104,000 1,105,000
FINANCIAL
STATEMENTS
CUSTOMER FEEDBACK
IS ONE OF THE
MOST IMPORTANT
ELEMENTS OF TIRE
DEVELOPMENT
MAKING THE WORLD SAFER,
OVER AND OVER AGAIN
Nokian Heavy Tyres product manager with a customer
155
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Statements
Consolidated income statement, IFRS
EUR million | Note | 2024 | 2023 |
Net sales | 1 | ||
Cost of sales | 3, 7, 8 | - | - |
Gross profit | |||
Other operating income | 4 | ||
Selling, marketing and R&D expenses | 7, 8 | - | - |
Administration expenses | 6, 7, 8 | - | - |
Other operating expenses | 5, 7, 8 | - | |
Operating profit | |||
Financial income | 9 | ||
Financial expenses | 10 | - | - |
Result before tax | - | ||
Tax expense | 11 | - | |
Result for the period, continuing operations | - | ||
Result for the period, discontinued operations | 2 | - | |
Result for the period | - | - | |
| Attributable to: | |||
Equity holders of the parent | - | - | |
Earnings per share (EPS) for the profit attributable to the equity holders of the parent: | 12 | ||
Basic, euros | - | - | |
Diluted, euros | - | - | |
Continuing operations, euros | - | ||
Discontinued operations, euros | - |
EUR million | Note | 2024 | 2023 |
| Consolidated statement of comprehensive income | |||
Result for the period | - | - | |
Other comprehensive income, items that may be reclassified subsequently to profit and loss, net of tax | |||
Cash flow hedges | 11 | - | - |
Translation differences on foreign operations | - | ||
Reclassification of discontinued operations | |||
Total other comprehensive income for the period, net of tax | |||
Total comprehensive income for the period | - | ||
| Total comprehensive income attributable to: | |||
Equity holders of the parent | - |
156
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Consolidated statement of financial position, IFRS
EUR million | Note | 2024 | 2023 |
| Assets | |||
| Non-current assets | |||
Property, plant and equipment | 13 | ||
Right of use assets | 15 | ||
Goodwill | 14 | ||
Other intangible assets | 14 | ||
Investments in associates | 17 | ||
Non-current financial investments | 17 | ||
Other receivables | 16, 18 | ||
Deferred tax assets | 19 | ||
| Current assets | |||
Inventories | 20 | ||
Trade and other receivables | 21, 29 | ||
Current tax assets | |||
Cash and cash equivalents | 22 | ||
Total assets | 1 |
Changes in net working capital arising from operative business are partly covered by EUR 500 million
domestic commercial paper program.
Interest-bearing liabilities include EUR 85.2 million of non-current and EUR 44.4 million of current lease
liabilities.
EUR million | Note | 2024 | 2023 |
| Equity and liabilitites | |||
Equity attributable to equity holders of the parent | 23, 24 | ||
Share capital | |||
Share premium | |||
Treasury shares | - | - | |
Translation reserve | - | ||
Fair value and hedging reserves | |||
Paid-up unrestricted equity reserve | |||
Retained earnings | |||
Total equity | |||
| Liabilities | |||
| Non-current liabilities | |||
Deferred tax liabilities | 19 | ||
Interest-bearing liabilities | 27, 29 | ||
Other liabilities | |||
| Current liabilities | |||
Trade and other payables | 28 | ||
Current tax liabilities | |||
Provisions | 26 | ||
Interest-bearing liabilities | 27, 29 | ||
Total liabilities | 1 | ||
Total equity and liabilities |
157
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Consolidated statement of cash flows, IFRS
EUR million | Note | 2024 | 2023 |
Result for the period | - | ||
Result for the discontinued operations | - | ||
Adjustments for Loss on sale of discontinued operations | |||
Depreciation, amortization and impairment | 7 | ||
Financial income and expenses | 9, 10 | ||
Gains and losses on sale of intangible assets, other changes | - | ||
Income taxes | 11 | - | |
Cash flow before changes in working capital | |||
| Changes in working capital | |||
Current receivables, non-interest-bearing, increase (-) / decrease (+) | - | - | |
Inventories, increase (-) / decrease (+) | - | ||
Current liabilities, non-interest-bearing, increase (+) / decrease (-) | |||
Changes in working capital | - | - | |
| Financial items and taxes | |||
Interest and other financial items, received | |||
Interest and other financial items, paid | - | - | |
Income taxes paid | - | - | |
Financial items and taxes | - | - | |
Cash flow from operating activities (A) |
EUR million | Note | 2024 | 2023 |
| Cash flows from investing activities | |||
Cashflow from discontinued operations | |||
Acquisitions of property, plant and equipment and intangible assets | 13, 14 | - | - |
Proceeds from sale of property, plant and equipment and intangible assets | |||
Other cash flow from investing activities | |||
Cash flows from investing activities (B) | - | - | |
| Cash flow from financing activities: | |||
Purchase of treasury shares | 23 | ||
Change in current financial receivables, increase (-) / decrease (+) | |||
Change in current financial borrowings, increase (+) / decrease (-) | - | - | |
Proceeds from non-current financial borrowings | |||
Payments of lease liabilities | - | - | |
Dividends received | |||
Dividends paid | - | - | |
Cash flow from financing activities (C) | |||
Change in cash and cash equivalents, increase (+) / decrease (-) (A+B+C) | - | ||
Cash and cash equivalents at the beginning of the period | |||
Effect of exchange rate fluctuations on cash held | - | - | |
Cash and cash equivalents at the end of the period | 22 |
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Consolidated statement of changes in equity, IFRS
Equity attributable to equity holders of the parent
| Fair value | Paid-up | ||||||||
| and | unrestricted | ||||||||
| Share | Share | Treasury | Translation | hedging | equity | Retained | Total | ||
EUR million | Note | capital | premium | shares | reserve | reserves | reserve | earnings | equity |
Equity, Jan 1, 2023 | - | - | |||||||
Result for the period | - | - | |||||||
| Other comprehensive income, net of tax: | |||||||||
Cash flow hedges | - | - | |||||||
Translation differences | |||||||||
Total comprehensive income for the period | - | - | - | ||||||
Dividends paid | 23 | - | - | ||||||
Acquisition of treasury shares | - | - | |||||||
Share-based payments | 24 | - | - | ||||||
Other changes | 19 | - | - | ||||||
Total transactions with owners for the period | - | - | - | ||||||
Equity, Dec 31, 2023 | - | - | |||||||
Equity, Jan 1, 2024 | - | - | |||||||
Result for the period | - | - | |||||||
| Other comprehensive income, net of tax: | |||||||||
Cash flow hedges | - | - | |||||||
Translation differences | |||||||||
Total comprehensive income for the period | - | - | |||||||
Dividends paid | 23 | - | - | ||||||
Acquisition of treasury shares | |||||||||
Share-based payments | 24 | - | - | ||||||
Other changes | 19 | - | - | ||||||
Total transactions with owners for the period | - | - | |||||||
Equity, Dec 31, 2024 | - |
159
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Statements
Accounting policies for the consolidated
financial statements
160
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Year 2024 Financial
Statements
161
Report by the
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Corporate Governance
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Year 2024 Financial
Statements
162
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Year 2024 Financial
Statements
Notes to the consolidated financial statements
1. Net sales and operating segments
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Operating segments
| Other | |||||
| 2024 | Passenger | operations and | |||
| EUR million | Car Tyres | Heavy Tyres | Vianor | eliminations | Group |
Net sales from external customers | 725.2 | 204.9 | 353.6 | 6.1 | 1,289.8 |
Services | 86.9 | 86.9 | |||
Sales of goods | 725.2 | 204.9 | 266.7 | 6.1 | 1,202.9 |
Inter-segment net sales | 54.8 | 30.2 | 1.3 | -86.2 | |
Net sales | 779.9 | 235.1 | 354.9 | -80.1 | 1,289.8 |
Operating result | -15.6 | 30.0 | -3.8 | -8.8 | 1.8 |
% of net sales | -2.0% | 12.8% | -1.1% | 11.0% | 0.1% |
Financial income and expenses | -33.3 | ||||
Result before tax | -31.5 | ||||
Tax expense | 8.7 | ||||
Result for the period | -22.8 | ||||
Assets | 1,735.4 | 203.9 | 202.5 | 15.9 | 2,157.6 |
Unallocated assets | 266.1 | ||||
Total assets | 2,423.7 | ||||
Liabilities | 239.6 | 47.9 | 48.1 | 0.0 | 335.6 |
Unallocated liabilities | 815.7 | ||||
Total liabilities | 1,151.3 | ||||
Capital expenditure | 325.3 | 10.8 | 8.0 | 6.0 | 350.1 |
Depreciation and amortization | 84.6 | 10.9 | 27.6 | 1.1 | 124.2 |
Other non-cash expenses | 4.6 | -0.6 | -0.3 | 0.0 | 3.7 |
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| Other | |||||
| 2023 | Passenger | operations and | |||
| EUR million | Car Tyres | Heavy Tyres | Vianor | eliminations | Group |
Net sales from external customers | 602.7 | 223.0 | 343.2 | 4.8 | 1,173.6 |
Services | 83.6 | 83.6 | |||
Sales of goods | 602.7 | 223.0 | 259.6 | 4.8 | 1,090.1 |
Inter-segment net sales | 50.7 | 34.2 | 0.8 | -85.7 | |
Net sales | 653.4 | 257.1 | 344.0 | -80.9 | 1,173.6 |
Operating result | 4.1 | 32.8 | 3.4 | -8.2 | 32.1 |
% of net sales | 0.6% | 12.8% | 1.0% | 10.2% | 2.7% |
Financial income and expenses | -17.8 | ||||
Result before tax | 14.2 | ||||
Tax expense | -1.7 | ||||
Result for the period | 12.5 | ||||
Assets | 1,364.9 | 206.3 | 217.4 | 34.2 | 1,822.8 |
Unallocated assets | 502.4 | ||||
Total assets | 2,325.2 | ||||
Liabilities | 200.0 | 49.6 | 44.2 | 7.0 | 300.9 |
Unallocated liabilities | 676.8 | ||||
Total liabilities | 977.6 | ||||
Capital expenditure | 226.8 | 8.8 | 7.7 | 8.8 | 252.1 |
Depreciation and amortization | 73.5 | 11.3 | 25.6 | 4.5 | 114.9 |
Other non-cash expenses | -1.0 | 2.5 | 0.7 | -0.3 | 1.9 |
165
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Year 2024 Financial
Statements
Notes concerning geographical segments
The business segments are operating in four geographic regions:
Nordics, Other Europe, Americas and other countries. Other contains
items that are not allocated to any geographic region. In presenting
information on the basis of geographical segments, segment
revenue is based on the location of the customers and segment
assets are based on the location of the assets.
Geographical information
| 2024 | ||||||
EUR million | Nordics | Other Europe | Americas | Other countries | Other | Group |
Net sales | 696.2 | 319.6 | 270.3 | 3.7 | - | 1,289.8 |
Services | 86.9 | - | - | - | 86.9 | |
Sales of goods | 609.3 | 319.6 | 270.3 | 3.7 | - | 1,202.9 |
Assets | 966.8 | 579.1 | 621.2 | 0.0 | -9.4 | 2,157.6 |
Unallocated assets | 266.1 | |||||
Total assets | 2,423.7 | |||||
Capital expenditure | 66.7 | 250.0 | 33.4 | 0.0 | 0.0 | 350.1 |
| 2023 | ||||||
EUR million | Nordics | Other Europe | Americas | Other countries | Other | Group |
Net sales | 671.7 | 226.0 | 268.7 | 7.2 | - | 1,173.6 |
Services | 83.6 | - | - | - | - | 83.6 |
Sales of goods | 588.2 | 226.0 | 268.7 | 7.2 | - | 1,090.1 |
Assets | 993.3 | 277.5 | 561.2 | 0.3 | -9.4 | 1,822.8 |
Unallocated assets | 502.4 | |||||
Total assets | 2,325.2 | |||||
Capital expenditure | 79.9 | 104.9 | 67.2 | 0.0 | 0.0 | 252.1 |
166
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Year 2024 Financial
Statements
2. Acquisitions and disposals
Acquisitions
There were no significant acquisitions during 2024 or 2023.
| Discontinued operations | |
EUR million | 2023 |
Net sales | 13.5 |
Operating expenses | -16.4 |
Operating profit | -2.9 |
Net financial items | -0.5 |
Result before tax, discontinued operations | -3.4 |
Tax expense | 1.2 |
Result for the year, discontinued operations | -2.2 |
Profit from sale | 30.5 |
Loss from sale – translation differences | -366.3 |
Result for the period, discontinued operations | -338.0 |
| Earnings per share from the result attributable to the | |
equity holders of the parent: | 2023 |
Basic, euros | -2.36 |
Diluted, euros | -2.36 |
Continuing operations, euros | 0.09 |
Discontinued operations, euros | -2.45 |
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Statements
EUR million | 2023 |
Sale price | 288.0 |
Profit from sale – Parent company and Nokian Tyres Holding Oy | 124.2 |
Non-current assets | 42.3 |
Current assets | 284.1 |
Total assets | 326.4 |
Non-current liabilities | 4.7 |
Current liabilities | 52.1 |
Total liabilities | 56.8 |
Disposed net assets | 269.6 |
Other group items and transactions costs | 12.1 |
Remaining intercompany items | 0.0 |
Profit from sale | 30.5 |
EUR million | 2024 | 2023 |
Raw materials | 274.7 | 294.5 |
Goods purchased for resale | 242.3 | 274.2 |
Wages and social security contributions on goods sold | 74.3 | 71.6 |
Other costs | 213.6 | 179.0 |
Depreciation of production | 77.2 | 71.4 |
Sales freights | 78.2 | 68.4 |
Warehousing | 69.4 | 60.8 |
Change in inventories | 26.3 | -87.3 |
Tota l | 1,056.0 | 932.5 |
4. Other operating income
EUR million | 2024 | 2023 |
| Gains on sale of property, plant and | ||
equipment | 0.5 | 0.2 |
Other income | 1.9 | 3.5 |
Tota l | 2.4 | 3.7 |
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Statements
EUR million | 2024 | 2023 |
| Losses on sale and disposals of tangible | ||
fixed assets | 0.0 | 0.0 |
Expensed credit losses and provisions | 0.0 | -1.8 |
Other expenses | 0.9 | 0.3 |
Tota l | 1.0 | -1.4 |
EUR million | 2024 | 2023 |
Audit fee | 1.0 | 1.1 |
Tax services | - | 0.0 |
Other services | 0.1 | 0.0 |
Tota l | 1.1 | 1.1 |
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EUR million | 2024 | 2023 |
Intangible rights | 3.8 | 3.7 |
Other intangible assets | 0.8 | 1.0 |
Buildings | 9.6 | 7.5 |
Machinery and equipment | 61.9 | 59.3 |
Right of use asset | 45.6 | 41.4 |
Other tangible assets | 2.5 | 2.2 |
Tota l | 124.2 | 114.9 |
EUR million | 2024 | 2023 |
Production | 77.2 | 71.4 |
Selling, marketing and R&D | 35.9 | 32.8 |
Administration | 11.1 | 10.7 |
Tota l | 124.2 | 114.9 |
EUR million | 2024 | 2023 |
Wages and salaries | 209.6 | 193.2 |
| Pension contributions - defined contribution | ||
plans | 22.8 | 22.5 |
Share-based payments | -0.2 | -4.7 |
Other social security contributions | 24.1 | 21.1 |
Tota l | 256.3 | 232.2 |
Personnel
2024 | 2023 | |
| Group employees | ||
Average | 3,850 | 3,754 |
At the end of the review period | 3,810 | 3,433 |
EUR million | 2024 | 2023 |
| Interest income | ||
Financial assets measured at amortized cost | 7.4 | 10.4 |
| Dividend income | ||
| Non-current financial investments | ||
measured at fair value through other comprehensive income | 0.0 | 0.0 |
Exchange rate gains and changes in fair value | ||
Financial assets and liabilities at amortized cost | 10.9 | 31.0 |
Foreign currency derivatives | 18.4 | 26.7 |
Other financial income | 0.1 | 0.3 |
Tota l | 37.0 | 68.5 |
EUR million | 2024 | 2023 |
| Interest expenses | ||
Financial liabilities measured at amortized cost | -33.0 | -21.1 |
| Interest rate derivatives designated | ||
as hedges | 2.0 | 2.7 |
Lease liabilities | -4.5 | -4.0 |
Exchange rate losses and changes in fair value | ||
Financial assets and liabilities at amortized cost | -15.9 | -38.6 |
Foreign currency derivatives | -16.1 | -22.8 |
Other financial expenses | -2.8 | -2.6 |
Tota l | -70.2 | -86.3 |
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Year 2024 Financial
Statements
EUR million | 2024 | 2023 |
Current tax expense | -12.8 | -11.0 |
Adjustment for prior periods | 0.7 | -0.8 |
Change in deferred tax | 20.8 | 10.0 |
Tota l | 8.7 | -1.7 |
EUR million | 2024 | 2023 |
Result before tax | -31.5 | 14.2 |
| Taxes calculated according to the Finnish | ||
tax rate of 20% | 6.3 | -2.8 |
EUR million | 2024 | 2023 |
| Effect of deviant tax rates in foreign | ||
subsidiaries | -1.6 | -1.1 |
Withholding taxes | - | -0.2 |
Tax exempt revenues | 0.4 | 17.4 |
Non-deductible expenses | -0.5 | -13.9 |
| Losses on which no deferred tax benefits | ||
recognized | 0.0 | 0.0 |
Adjustment for prior periods | 3.9 | -0.8 |
| Utilization of previously unrecognized tax | ||
losses | 0.1 | 0.0 |
Other items | 0.2 | -0.3 |
Tax expense | 8.7 | -1.7 |
| 2024 | Before | Net of | |
| EUR million | tax amount | Tax benefit | tax amount |
Cash flow hedges | -1.3 | 0.5 | -0.8 |
| Translation differences | |||
on foreign operations | 27.0 | 27.0 | |
Tota l | 25.7 | 0.5 | 26.2 |
| 2023 | Before | Net of | |
| EUR million | tax amount | Tax benefit | tax amount |
Cash flow hedges | -11.2 | 2.2 | -8.9 |
| Translation differences | |||
on foreign operations | 332.8 | 332.8 | |
Tota l | 321.6 | 2.2 | 323.8 |
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12. Earnings per share
EUR million | 2024 | 2023 |
| Result attributable to the equity holders of | ||
the parent | -22.8 | -325.5 |
| Result for the period to calculate the diluted | ||
earnings per share | -22.8 | -325.5 |
Result for the period, continuing operations | -22.8 | 12.5 |
Result for the period, discontinued operations | - | -338.0 |
| Shares, 1,000 pcs | ||
Weighted average number of shares | 137,869 | 137,982 |
Dilutive effect of the options | - | - |
Diluted weighted average number of shares | 137,869 | 137,982 |
| Earnings per share, euros | ||
Basic | -0.17 | -2.36 |
Diluted | -0.17 | -2.36 |
Continuing operations | -0.17 | 0.09 |
Discontinued operations | - | -2.45 |
13. Property, plant and equipment
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| Advances | ||||||
| Machinery | Other | and fixed | ||||
| 2024 | Land | and | tangible | assets under | ||
| EUR million | property | Buildings | equipment | assets | construction | Tota l |
Accumulated cost, 1 Jan 2024 | 27.6 | 274.1 | 1,049.9 | 51.4 | 244.5 | 1,647.5 |
Increase | 0.1 | 3.4 | 22.0 | 0.8 | 323.6 | 349.9 |
Decrease | 0.0 | -0.1 | -1.7 | 0.0 | 0.0 | -1.9 |
Transfers between items | 115.8 | 127.4 | 14.8 | -264.8 | -6.8 | |
Other changes | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
Exchange differences | 0.0 | 8.2 | 16.7 | 0.6 | 1.8 | 27.2 |
Accumulated cost, 31 Dec 2024 | 27.7 | 401.4 | 1,214.2 | 67. 5 | 305.1 | 2,015.9 |
Accum. Depreciation, 1 Jan 2024 | 0.0 | -93.2 | -656.9 | -12.2 | -762.3 | |
Depreciation for the period | -9.6 | -61.9 | -2.5 | -74.0 | ||
Impairment | - | |||||
Decrease | 0.1 | 1.4 | 0.0 | 1.5 | ||
Other changes | 0.0 | 0.0 | 0.0 | 0.0 | ||
Exchange differences | -0.7 | -3.5 | -0.2 | -4.3 | ||
Accum. Depreciation, 31 Dec 2024 | 0.0 | -103.4 | -720.9 | -14.9 | -839.1 | |
Carrying amount, 31 Dec 2024 | 27.7 | 298.0 | 493.3 | 52.7 | 305.1 | 1,176.8 |
| Advances | ||||||
| Machinery | Other | and fixed | ||||
| 2023 | Land | and | tangible | assets under | ||
| EUR million | property | Buildings | equipment | assets | construction | Tota l |
Accumulated cost, 1 Jan 2023 | 20.9 | 395.8 | 1,416.9 | 123.1 | 113.4 | 2,070.2 |
Increase | 14.0 | 0.1 | 12.7 | -4.4 | 231.8 | 254.3 |
Decrease | -2.2 | -122.9 | -429.4 | -65.6 | -5.7 | -625.8 |
Transfers between items | -5.0 | 9.3 | 83.0 | 0.7 | -91.8 | -3.8 |
Other changes | 0.0 | -10.7 | -0.1 | 0.0 | -10.7 | |
Exchange differences | -0.1 | -8.3 | -22.7 | -2.3 | -3.3 | -36.7 |
Accumulated cost, 31 Dec 2023 | 27.6 | 274.1 | 1,049.9 | 51.4 | 244.5 | 1,647.5 |
Accum. Depreciation, 1 Jan 2023 | -1.7 | -190.6 | -1,028.6 | -74.3 | -1,295.2 | |
Depreciation for the period | -7.5 | -59.1 | -2.2 | -68.8 | ||
Impairment | - | |||||
Decrease | 1.6 | 103.1 | 406.7 | 62.4 | 573.8 | |
Other changes | 0.0 | 10.5 | 0.1 | 10.6 | ||
Exchange differences | 1.8 | 13.7 | 1.8 | 17.2 | ||
Accum. Depreciation, 31 Dec 2023 | 0.0 | -93.2 | -656.9 | -12.2 | -762.3 | |
Carrying amount, 31 Dec 2023 | 27.6 | 180.9 | 392.9 | 39.2 | 244.5 | 885.2 |
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| Other | ||||
| 2024 | Intangible | intangible | ||
EUR million | Goodwill | rights | assets | Tot al |
Accumulated cost, 1 Jan 2024 | 76.6 | 84.5 | 27.1 | 188.2 |
Increase | 1.0 | 0.0 | 1.0 | |
Decrease | -0.6 | -0.6 | ||
Transfers between items | 6.5 | 0.3 | 6.8 | |
Other changes | 0.0 | 0.0 | 0.0 | 0.0 |
Exchange differences | -0.6 | 0.0 | -0.1 | -0.7 |
Accumulated cost, 31 Dec 2024 | 76.0 | 91.9 | 26.7 | 194.7 |
Accum. Depreciation, 1 Jan 2024 | -14.3 | -74.9 | -22.9 | -112.1 |
Depreciation for the period | -3.8 | -0.8 | -4.6 | |
Impairment | - | |||
Decrease | 0.3 | 0.3 | ||
Other changes | -0.3 | 0.0 | -0.3 | |
Exchange differences | 0.0 | 0.0 | 0.1 | 0.1 |
Accum. Depreciation, 31 Dec 2024 | -14.5 | -78.6 | -23.3 | -116.5 |
Carrying amount, 31 Dec 2024 | 61.5 | 13.3 3.4 78.2 |
| Other | ||||
| 2023 | Intangible | intangible | ||
EUR million | Goodwill | rights | assets | Tot al |
Accumulated cost, 1 Jan 2023 | 78.0 | 90.4 | 44.3 | 212.7 |
Increase | 0.5 | 0.3 | 0.9 | |
Decrease | -0.1 | -17.3 | -17.4 | |
Transfers between items | 3.7 | 0.1 | 3.8 | |
Other changes | -0.5 | -10.1 | 0.0 | -10.6 |
Exchange differences | -0.9 | 0.0 | -0.2 | -1.1 |
Accumulated cost, 31 Dec 2023 | 76.6 | 84.5 | 27.1 | 188.2 |
Accum. Depreciation, 1 Jan 2023 | -14.5 | -81.4 | -37.8 | -133.7 |
Depreciation for the period | -3.7 | 3.0 | -0.7 | |
Impairment | - | |||
Decrease | 0.1 | 11.6 | 11.7 | |
Other changes | 0.3 | 10.1 | 0.1 | 10.4 |
Exchange differences | 0.0 | 0.0 | 0.2 | 0.2 |
Accum. Depreciation, 31 Dec 2023 | -14.3 | -74.9 | -22.9 | -112.1 |
Carrying amount, 31 Dec 2023 | 62.3 | 9.6 | 4.2 | 76.1 |
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EUR million | Dec 31, 2024 |
Passenger Car Tyres | 60.6 |
Heavy Tyres | 0.9 |
Vianor | - |
Total goodwill | 61.5 |
| Impairment | Goodwill | ||
| EUR million | loss | Dec 31, 2024 | |
Passenger Car Tyres | 60.6 | - | 60.6 |
Heavy Tyres | 0.9 | - | 0.9 |
Vianor | - | - | - |
Total goodwill | 61.5 | - | 61.5 |
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15. Right of use assets
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| 2023 | Machinery and | |||
EUR million | Land property | Buildings | equipment | Tot al |
Accumulated cost, Jan 1, 2023 | 1.2 | 230.9 | 4.8 | 236.9 |
Increase | 0.2 | 45.0 | 2.2 | 47.5 |
Decrease | -0.1 | -28.9 | -2.2 | -31.2 |
Other changes | - | 0.8 | - | 0.8 |
Exchange differences | - | -6.2 | 0.0 | -6.2 |
Accumulated cost, Dec 31, 2023 | 1.4 | 241.6 | 4.8 | 247. 8 |
Accum. Depreciation, Jan 1, 2023 | -0.2 | -110.5 | -2.4 | -113.1 |
Depreciation for the period | -0.1 | -39.7 | -1.6 | -41.4 |
Decrease | 0.0 | 26.7 | 2.1 | 28.8 |
Other changes | - | 0.0 | - | 0.0 |
Exchange differences | - | 2.6 | 0.0 | 2.6 |
Accum. Depreciation, Dec 31, 2023 | -0.3 | -120.9 | -1.9 | -123.1 |
Carrying amount, Dec 31, 2023 | 1.1 | 120.7 | 3.0 | 124.7 |
| 2024 | Machinery and | |||
EUR million | Land property | Buildings | equipment | Tota l |
Accumulated cost, Jan 1, 2024 | 1.4 | 241.6 | 4.8 | 247.8 |
Increase | 0.2 | 44.9 | 4.9 | 50.0 |
Decrease | -0.1 | -21.8 | -1.2 | -23.0 |
Other changes | 0.0 | 0.0 | 0.0 | 0.0 |
Exchange differences | 0.0 | -3.1 | 0.0 | -3.1 |
Accumulated cost, Dec 31, 2024 | 1.5 | 261.7 | 8.5 | 271.6 |
Accum. Depreciation, Jan 1, 2024 | -0.3 | -120.9 | -1.9 | -123.1 |
Depreciation for the period | -0.1 | -43.4 | -2.1 | -45.6 |
Decrease | 0.1 | 19.0 | 1.2 | 20.2 |
Other changes | 0.0 | 0.0 | 0.0 | 0.0 |
Exchange differences | 0.0 | 1.3 | 0.0 | 1.3 |
Accum. Depreciation, Dec 31, 2024 | -0.4 | -144.0 | -2.8 | -147.1 |
Carrying amount, Dec 31, 2024 | 1.1 | 117.7 | 5.7 | 124.5 |
Expenses arising from leases of low-value amounted to EUR 0.6 (0.2) million and short-term leases amounted
to EUR 6.0 (2.7) million in 2024. These contracts are not included in the right of use assets. Interest expenses
from right of use assets were EUR 4.5 (4.0) million.
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2024 | 2023 | ||||||||
| Fair value | Fair value | ||||||||
| Carrying | Carrying | ||||||||
EUR million | Note | amount | Level 1 | Level 2 | Level 3 | amount | Level 1 | Level 2 | Level 3 |
| Financial assets | |||||||||
| Fair value through profit or loss | |||||||||
Derivatives held for trading | 30 | 1.9 | - | 1.9 | - | 2.6 | - | 2.6 | - |
Derivatives designated as hedges | 30 | 14.1 | - | 14.1 | - | 3.3 | - | 3.3 | - |
Unquoted securities | 17 | 2.9 | - | - | 2.9 | 2.7 | - | - | 2.7 |
| Amortized cost | |||||||||
Trade and other receivables | 21 | 276.3 | - | 276.3 | - | 226.6 | - | 226.6 | - |
Money market instruments | 22 | - | - | - | - | 50.7 | - | 50.7 | - |
Cash in hand and at bank | 22 | 176.1 | - | 176.1 | - | 364.2 | - | 364.2 | - |
| Fair value through other comprehensive income | |||||||||
Unquoted shares | 17 | 0.2 | - | - | 0.2 | 0.2 | - | - | 0.2 |
Total financial assets | 471.5 | - | 468.4 | 3.1 | 650.4 | - | 647.4 | 2.9 | |
| Financial liabilities | |||||||||
| Fair value through profit or loss | |||||||||
Derivatives held for trading | 30 | 1.1 | - | 1.1 | - | 1.7 | - | 1.7 | - |
Derivatives designated as hedges | 30 | 13.2 | - | 13.2 | 1.0 | - | 1.0 | - | |
| Amortized cost | |||||||||
Interest-bearing financial liabilities | 27 | 659.6 | - | 676.8 | - | 508.2 | - | 518.6 | - |
Trade and other payables | 28 | 160.6 | - | 160.6 | - | 155.9 | - | 155.9 | - |
Total financial liabilities | 834.6 | - | 851.7 | - | 666.8 | - | 677.2 | - |
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| Investments | Unquoted | Unquoted | |
| EUR million | in associates | securities | shares |
Accumulated cost, Jan 1, 2024 | 0.1 | 2.7 | 0.2 |
Net exchange differences | - | 0.2 | - |
Carrying amount, Dec 31, 2024 | 0.1 | 2.9 | 0.2 |
Carrying amount, Dec 31, 2023 | 0.1 | 2.7 | 0.2 |
EUR million | 2024 | 2023 |
Other non-current receivables | 20.9 | 14.1 |
Tota l | 20.9 | 14.1 |
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| Recognized | ||||||
| Recognized | in other | |||||
| Dec 31, | Adjustments | in income | comprehensive | Net exchange | Dec 31, | |
| EUR million | 2023 | between items | statement | income | differences | 2024 |
| Deferred tax assets | ||||||
Inventories | 9.3 | 1.3 | 10.6 | |||
Property, plant and equipment and intangible assets | 1.8 | 4.1 | 5.9 | |||
Lease liabilities | 28.5 | -0.8 | 0.2 | 27.9 | ||
Provisions and accruals | -0.7 | 0.3 | 4.6 | 4.2 | ||
Tax losses carried forward | 33.5 | 0.6 | -5.8 | 28.3 | ||
Cash flow hedges | 0.0 | - | 1.1 | 1.1 | ||
Other items | 0.1 | 0.3 | 8.6 | 9.0 | ||
Tot al | 72.6 | 1.2 | 12.0 | 1.1 | 0.2 | 87.1 |
Deferred tax assets offset against deferred tax liabilities | -17.6 | -14.6 | -32.3 | |||
Deferred tax assets | 55.0 | 1.2 | -2.6 | 1.1 | 0.2 | 54.8 |
| Deferred tax liabilities | ||||||
Property, plant and equipment and intangible assets | 14.9 | 0.5 | -8.0 | 7.4 | ||
Right of use assets | 27.4 | -0.4 | -0.2 | 26.8 | ||
Untaxed reserves | 0.0 | 0.6 | 0.6 | |||
Undistributed earnings in subsidiaries | - | - | - | |||
Cash flow hedges | 0.4 | - | 0.5 | 1.0 | ||
Other items | 1.7 | -0.4 | -1.1 | 0.2 | ||
Tot al | 44.3 | 0.1 | -8.8 | 0.5 | -0.2 | 36.0 |
Deferred tax liabilities offset against deferred tax assets | -17.6 | -14.6 | -32.3 | |||
Deferred tax liabilities | 26.7 | 0.1 | -23.4 | 0.5 | -0.2 | 3.7 |
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| Recognized | ||||||
| Recognized | in other | |||||
| Dec 31, | Adjustments | in income | comprehensive | Net exchange | Dec 31, | |
| EUR million | 2022 | between items | statement | income | differences | 2023 |
| Deferred tax assets | ||||||
Inventories | 9.9 | -0.6 | 9.3 | |||
Property, plant and equipment and intangible assets | 1.1 | 0.7 | 1.8 | |||
Lease liabilities | 25.8 | 2.7 | 28.5 | |||
Provisions and accruals | 3.1 | -2.0 | -2.0 | 0.3 | -0.7 | |
Tax losses carried forward | 20.2 | 13.3 | 33.5 | |||
Cash flow hedges | 0.0 | - | 0.0 | 0.0 | ||
Other items | 0.7 | -0.7 | 0.1 | |||
Tot al | 60.9 | -2.0 | 13.5 | 0.0 | 0.3 | 72.6 |
| Deferred tax assets offset against deferred | ||||||
| tax liabilities | -37.4 | 19.7 | -17.6 | |||
Deferred tax assets | 23.5 | -2.0 | 33.2 | 0.0 | 0.3 | 55.0 |
| Deferred tax liabilities | ||||||
Property, plant and equipment and intangible assets | 17.7 | 0.3 | -3.1 | 14.9 | ||
Right of use assets | 24.8 | 2.6 | 27. 4 | |||
Untaxed reserves | 0.6 | -0.6 | 0.0 | |||
Undistributed earnings in subsidiaries | 9.2 | -1.4 | -7.7 | - | ||
Cash flow hedges | 2.6 | - | -2.2 | 0.4 | ||
Other items | 0.0 | 1.4 | 0.2 | 1.7 | ||
Tot al | 54.8 | 0.3 | -8.6 | -2.2 | 0.0 | 44.3 |
Deferred tax liabilities offset against deferred tax assets | -37.4 | 19.7 | -17.6 | |||
Deferred tax liabilities | 17.5 | 0.3 | 11.1 | -2.2 | 0.0 | 26.7 |
Deferred tax assets and liabilities are offset when there is a legally
enforceable right to offset current tax assets against current tax
liabilities and when the deferred income taxes relate to the same
fiscal authority.
On 31 December 2024, the Group had carry forward losses for
EUR 140.8 (136.2) million, on which a deferred tax asset has been
recognised. EUR 134.2 million of these carry forward losses will expire
during years 2030–2034 and EUR 6.5 million will not expire. The
Group also had carry forward losses for EUR 2.1 (3.4) million, on which
no deferred tax asset was recognized. It is not probable that future
taxable profit will be available to offset these losses. EUR 2.1 million
of these losses will expire in five years. The carry forward losses have
mainly arisen from Finnish companies as a result of the Russia exit
and the resulting investments. Forecasts prepared by the Group’s
management show that due to the increase in the company’s
production capacity and the current transfer pricing model, the carry
forward losses will be able to be used before they expire.
The Group has utilized previously unrecognized tax losses from
prior periods with EUR 0.3 (0.1) million in 2024.
The adjustments include EUR 1.1 million of adjustments that are
booked through retained earnings. The adjustments are not applied
to previous years because retrospective correction of previous years’
estimates is not possible.
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EUR million | 2024 | 2023 |
Raw materials and supplies | 116.1 | 108.1 |
Work in progress | 11.7 | 11.3 |
Finished goods | 324.2 | 352.3 |
Tota l | 452.1 | 471.7 |
EUR million | 2024 | 2023 |
Trade receivables | 274.0 | 224.2 |
Accrued revenues and deferred expenses | 18.3 | 14.9 |
| Derivative financial instruments | ||
Designated as hedges | 1.9 | 3.0 |
Measured at fair value through profit or loss | 1.9 | 2.6 |
Current tax assets | 4.4 | 7.6 |
Value added tax receivables | 24.4 | 23.6 |
Other receivables | 12.3 | 4.7 |
Tota l | 337.1 | 280.5 |
EUR million | 2024 | 2023 |
Annual discounts, purchases | 3.7 | 2.7 |
Financial items | 1.2 | 1.1 |
Social security contributions | 0.1 | 0.3 |
Insurances | 1.4 | 1.6 |
Other items | 12.0 | 9.3 |
Tota l | 18.3 | 14.9 |
EUR million | 2024 | 2023 |
Cash in hand and at bank | 176.1 | 364.2 |
Money market instruments | - | 50.7 |
Tota l | 176.1 | 414.9 |
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23. Equity
| Number of | Paid-up | |||||
| shares, | Share | unrestricted | Treasury | |||
| EUR million | 1,000 pcs | Share capital | premium | equity reserve | shares | Total |
Jan 1, 2023 | 138,251 | 25.4 | 181.4 | 238.2 | -16.6 | 428.5 |
Acquisition/conveyance of treasury shares | -384 | -0.1 | -0.1 | |||
Dec 31, 2023 | 137,867 | 25.4 | 181.4 | 238.2 | -16.7 | 428.4 |
Jan 1, 2024 | 137,867 | 25.4 | 181.4 | 238.2 | -16.7 | 428.4 |
Acquisition/conveyance of treasury shares | 2 | 0.1 | 0.1 | |||
Dec 31, 2024 | 137,870 | 25.4 | 181.4 | 238.2 | -16.6 | 428.4 |
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Active Performance Share Plans
Performance Share Plan 2022–2024: In February 2022, the Board
of Nokian Tyres plc decided to continue the Performance Share
Plan for a new performance period for the years 2022–2024. The
Performance Period (PSP 2022–2024) commenced effective as of
the beginning of 2022 and the potential share reward thereunder
will be paid in the first half of 2025 provided that the performance
targets set by the Board of Directors are achieved. The potential
reward will be paid partly in shares of Nokian Tyres plc and partly
in cash. Cash portion of the reward is intended to cover the taxes
arising from the paid reward. The potential share reward payable
under the PSP 2022–2024 are based on the segments Earnings Per
Share (EPS) and segments Return on Capital Employed (ROCE).
Performance Share Plan 2023–2027: In February 2023, The
Board of Directors of Nokian Tyres plc decided to establish a new
share-based incentive plan for the Group’s key employees. The aim
is to align the objectives of the company’s shareholders and key
employees for increasing the value of the company in the long-
term, to retain the key employees at the company and to offer
them a competitive incentive scheme that is based on earning
and accumulating shares. The Performance Share Plan 2023–2027
consists of three performance periods covering the financial
years 2023–2024, 2024–2025 and 2025–2027. Additionally, the
performance periods 2023–2024 and 2024–2025 have one year
retention period.
The Board will decide annually on the commencement and
details of the performance periods. In the plan, the target group
is given an opportunity to earn Nokian Tyres plc shares based on
the achievement of the targets set for the performance periods.
Potential rewards of the plan will be paid by the end of April 2026,
2027, and 2028 respectively. The rewards will be paid partly in Nokian
Tyres plc shares and partly in cash. The cash proportion of the reward
is intended for covering taxes and tax-related expenses arising from
the rewards to the participants. In general, no reward will be paid if
the participant’s employment or director contract terminates before
the reward payment.
Active Restricted Share Plans
The Restricted Share Plan (RSP) consists of annually commencing
restricted share plans. Each plan has a three-year vesting period
after which the allocated share rewards will be delivered to the
participants partly in Nokian Tyres plc shares and partly in cash. The
purpose of the Restricted Share Plan is to serve as a complementary
long-term incentive tool, used selectively for retention of Nokian
Tyres key employees.
The commencement of each new plan is subject to a separate
approval by the Board.
A precondition for the payment of the share reward based on
the Restricted Share Plan is that the employment relationship of the
individual participant with Nokian Tyres continues until the payment
date of the reward. In addition to this precondition, a financial
performance criteria is applied to Group Management Team. The
criteria is a threshold value for segment Return on Capital Employed
(ROCE), which must be exceeded for a potential payment of a share
reward based on the Restricted Share Plan.
In February 2023, the Board of Director decided to modify the
financial performance criteria. The change was necessary to reflect
the radical effects on business conditions, caused by the war in
Ukraine. It was decided that the threshold criteria are changed and
measured against a pre-set average threshold value for segments
ROCE (during the financial years during the corresponding restriction
period).
The previous financial threshold criteria was set for an average
value for ROCE (according to IFRS), during the restriction period in
question. A threshold value tied to average segments ROCE is be
applied to Restricted Share Plans 2022–2024, 2023–2025 as well as
for the Restricted Share plan commencing in 2024, with a restriction
period between 2024–2026.
Share plans that ended in the beginning of 2024
Performance Share Plan 2021–2023
The performance measure for the Performance Share Plan 2021–
2023 was based on segments Earnings Per Share (EPS) and segments
Return on Capital Employed (ROCE), both with an equal weight of
50%. Both targets did not meet the minimum level and thereby, no
payments were conducted.
Restricted Share Plan 2021–2023
The three-year restriction period of the Restricted Share Plan
2021–2023 ended after financial year 2023. Some key employees
participate in the share-based incentive plan, including a member of
the Management Team. The financial threshold value for segments
Return on Capital Employed (ROCE) applied for the Management
Team member was achieved. The rewards paid corresponded to
a total of 4,600 Nokian Tyres plc gross shares. The rewards were
paid in March 2024. A precondition for the payment of the share
reward based on the Restricted Share Plan is that the employment
relationship of a participant with Nokian Tyres continues until the
payment date of the reward.
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The following tables present more specific information on the performance share plans.
Instrument | PSP | 2021–2023 | PSP 2022–2024 | PSP 2023–2025 | PSP 2024–2026 | RSP 2021–2023 | RSP 2022–2024 | RSP 2023–2025 | RSP 2024–2026 | Total | |
Issuing date | Feb 9, 2021 | Feb 8, 2022 | Feb 7, 2023 | Feb 6, 2024 | Feb 9, 2021 | Feb 8, 2022 | Feb 7, 2023 | Feb 6, 2024 | |||
Initial amount, pcs | 534,898 | 513,742 | 1,400,000 | 1,760,000 | 120,000 | 120,000 | 120,000 | 120,000 | 4,688,640 | ||
Dividend adjustment | No | No | No | No | No | No | No | No | |||
Initial allocation date | Mar 4, 2021 | Feb 8, 2022 | Feb 17, 2023 | Mar 1, 2024 | Mar 18, 2021 | Dec 19, 2022 | Dec 12, 2023 | Feb | 19,2024 | ||
Beginning of earning period | Jan 1, 2021 | Jan 1, 2022 | Jan 1, 2023 | Jan 1, 2024 | Jan 1, 2021 | Jan 1, 2022 | Jan 1, 2023 | Jan 1, 2024 | |||
End of earning period | Dec 31, 2023 | Dec 31, 2024 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2023 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2026 | |||
Vesting date | Mar 31, 2024 | Mar 31, 2025 | Apr 30, 2026 | Apr 30, 2027 | Mar 31, 2024 | Mar 31, 2025 | Mar 31, 2026 | Mar 31, 2027 | |||
| Cumulative | Cumulative | ||||||||||
| Segments | EBITDA, increase | EBITDA, increase | Continued | Continued | |||||||
| Segments | earnings per | in passenger car | in passenger car | employment, | Continued | Continued | employment, | ||||
| earnings per share | share (EPS) | tire production | tire production | segments | employment, | employment, | segments return on | ||||
| (EPS) growth, % | growth, % | volume and | volume and | return on capital | segments return on | segments return on | capital employed | ||||
| and segments | and segments | reduction | reduction | employed (ROCE) | capital employed | capital employed | (ROCE) for | ||||
| return on capital | return on capital | in direct CO 2 | in direct CO 2 | for Management | (ROCE) for | (ROCE) for | Management Team | ||||
| Vesting conditions | employed (ROCE) | employed (ROCE) | emissions | emissions | Tea m | Management Team | Management Team | (excluding new CEO) | |||
Maximum contractual life, years | 3.1 | 3.1 | 3.2 | 3.2 | 3.1 | 3.1 | 3.2 | 3.2 | 3.2 | ||
Remaining contractual life, years | 0.0 | 0.3 | 1.3 | 2.3 | 0.0 | 0.3 | 1.3 | 2.3 | 1.4 | ||
Number of persons at the end of reporting year | 0 | 154 | 142 | 153 | 0 | 7 | 2 | 3 | |||
Payment method | Cash & equity | Cash & equity | Cash & equity | Cash & equity | Cash & equity | Cash & equity | Cash & equity | Cash & equity | |||
Changes during period | PSP | 2021–2023 | PSP 2022–2024 | PSP 2023–2025 | PSP 2024–2026 | RSP 2021–2023 | RSP 2022–2024 | RSP 2023–2025 | RSP 2024–2026 | Total | |
| Jan 1, 2024 | |||||||||||
Outstanding in the beginning of the period | 362,050 | 358,996 | 1,285,766 | 0 | 6,135 | 12,300 | 15,000 | 0 | 2,040,247 | ||
Reserve in the beginning of the period | 172,848 | 154,746 | 114,234 | 0 | 113,865 | 107,700 | 105,000 | 0 | 768,393 | ||
| Changes during period | |||||||||||
Granted | 0 | 0 | 0 | 1,756,696 | 0 | 0 | 0 | 110,000 | 1,866,696 | ||
Forfeited | 15,818 | 25,930 | 96,548 | 31,952 | 1,535 | 0 | 0 | 0 | 171,783 | ||
Earned (Gross) | 0 | 0 | 0 | 0 | 4,600 | 0 | 0 | 0 | 4,600 | ||
Delivered (Net) | 0 | 0 | 0 | 0 | 2,265 | 0 | 0 | 0 | 2,265 | ||
Expired | 534,898 | 0 | 0 | 0 | 115,400 | 0 | 0 | 0 | 650,298 | ||
| Dec 31, 2024 | |||||||||||
Outstanding at the of the period | 0 | 333,066 | 1,189,218 | 1,724,744 | 0 | 12,300 | 15,000 | 110,000 | 3,384,328 | ||
Reserved at the of the period | 0 | 180,676 | 210,782 | 35,256 | 0 | 107,700 | 105,000 | 10,000 | 649,414 |
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| 2024 | |
| Fair value Determination | |
Share price at grant, EUR | 8.63 |
Share price at reporting date, EUR | 7.346 |
Expected dividends, EUR | 1.45 |
Fair market value per share at grant, EUR | 7.18 |
Valuation model | Dividend Discount |
Total fair value Dec 31, 2024, EUR million | 0.69 |
Impact on period profits and financial position | |
Expenses for the financial year, share- based payments, EUR million | -0.21 |
| Liabilities arising from share-based | |
payments Dec 31, 2024, EUR million | 0.00 |
Estimated amount of cash to be paid under these plans, EUR million | 0.50 |
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| Warranty | ||
| EUR million | provision | Total |
Jan 1, 2024 | 1.8 | 1.8 |
Provisions made | 1.6 | 0.0 |
Provisions used | -0.2 | -0.2 |
Unused provisions reversed | -1.6 | 0.0 |
Dec 31, 2024 | 1.6 | 1.6 |
EUR million | 2024 | 2023 |
Current provisions | 1.6 | 1.8 |
EUR million | 2024 | 2023 |
| Non-current | ||
Loans from financial institutions and pension loans | 557.3 | 304.7 |
Bond loans | 99.4 | 99.2 |
656.7 | 404.0 | |
| Current | ||
Commercial papers | 2.0 | - |
Current portion of non-current loans from financial institutions and pension loans | 0.9 | 104.2 |
2.9 | 104.2 | |
Total | 659.6 | 508.2 |
| 2024 | 2023 | |||
| Without | With | Without | With | |
| hedges | hedges | hedges | hedges | |
| Loans from financial | ||||
institutions and pension loans | 4.3% | 4.3% | 5.2% | 4.3% |
Bond loans | 5.3% | 5.3% | 5.3% | 5.3% |
Commercial papers | 4.5% | 4.5% | - | - |
Total | 4.5% | 4.4% | 5.2% | 4.5% |
EUR million | 2024 | 2023 |
Trade payables | 160.6 | 155.9 |
Accrued expenses and deferred revenues | 131.5 | 106.3 |
Advance payments | 0.0 | 0.0 |
| Derivative financial instruments | ||
Designated as hedges | 6.2 | 0.5 |
Measured at fair value through profit or loss | 1.1 | 1.7 |
Current tax liabilities | 7.8 | 3.8 |
Value added tax liabilities | 30.3 | 24.0 |
Other liabilities | 18.0 | 18.1 |
Total | 355.5 | 310.2 |
EUR million | 2024 | 2023 |
| Significant items under accrued expenses | ||
| and deferred revenues | ||
| Wages, salaries and social security | ||
contributions | 31.5 | 26.0 |
Annual discounts, sales | 79.4 | 62.2 |
Commissions | 0.2 | 0.0 |
Marketing expenses | 1.0 | 0.8 |
Transportation costs | 0.0 | 0.2 |
Financial items | 7.2 | 5.2 |
Other items | 12.1 | 11.9 |
Total | 131.5 | 106.3 |
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29. Financial risk management
The Group Treasury identifies, measures, manages, and monitors
financial risks that could impact the Group’s financial performance.
This includes liquidity risk, credit risk, and market risks: foreign
exchange risk, interest rate risk, commodities risk, and other market
risks. The objective is to employ risk mitigation strategies and
controls that align with the Group’s risk appetite and protect against
potential adverse financial outcomes.
The principles and targets of financial risk management are
defined in the Group’s treasury policy, which is approved by the
Board. The Group Credit Committee makes credit decisions that
have a significant impact on the credit exposure of the Group.
Financing activities and financial risk management are centralized
to the parent company Treasury. It engages in financing and
hedging transactions with external parties while also serving as
the primary counterparty for business units in various financing
undertakings, including funding, foreign exchange operations, and
cash management.
EUR million | Dec 31, 2024 | Dec 31, 2023 | ||||||||||||||
Functional currency | EUR | EUR | EUR | EUR | EUR | EUR | CZK | RON | EUR | EUR | EUR | EUR | EUR | EUR | CZK | RON |
Foreign currency | CAD | NOK | PLN | RON | SEK | USD | EUR | EUR | CAD | NOK | PLN | RON | SEK | USD | EUR | EUR |
Trade receivables | 20.5 | 29.5 | 15.0 | 2.0 | 23.6 | 11.7 | 27.0 | 0.0 | 15.0 | 21.9 | 5.1 | 0.0 | 24.3 | 11.9 | 20.2 | 0.0 |
Loans and receivables | 1.8 | 35.2 | 0.0 | 178.9 | 18.7 | 16.6 | 0.0 | 0.1 | 1.6 | 44.8 | 7.3 | 0.0 | 28.0 | 8.6 | 5.8 | 0.0 |
Total currency income | 22.3 | 64.6 | 15.0 | 181.0 | 42.3 | 28.2 | 27.0 | 0.1 | 16.6 | 66.6 | 12.4 | 0.0 | 52.3 | 20.5 | 26.1 | 0.0 |
Trade payables | -0.1 | 0.0 | -0.4 | 0.0 | 0.0 | -34.1 | -31.6 | -10.9 | -0.1 | 0.0 | 0.0 | 0.0 | 0.0 | -16.7 | -21.2 | -3.8 |
Borrowings | -21.6 | -40.1 | -8.2 | 0.0 | -13.8 | 0.0 | -1.6 | 0.0 | -9.8 | -31.1 | -5.8 | 0.0 | -13.1 | -3.2 | 0.0 | 0.0 |
Total currency expenditure | -21.7 | -40.1 | -8.6 | 0.0 | -13.8 | -34.1 | -33.2 | -10.9 | -9.9 | -31.1 | -5.8 | 0.0 | -13.1 | -20.0 | -21.2 | -3.8 |
Foreign exchange derivatives | -0.7 | -23.7 | -7.0 | -173.3 | -28.8 | -4.8 | 9.5 | 0.0 | -4.1 | -38.7 | -5.8 | 0.0 | -41.9 | -5.9 | -5.3 | 0.0 |
Primary net exposure | -0.1 | 0.8 | -0.7 | 7.7 | -0.3 | -10.7 | 3.2 | -10.9 | 2.6 | -3.2 | 0.9 | 0.0 | -2.8 | -5.3 | -0.4 | -3.7 |
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| Net investments by currency | ||
EUR million | Dec 31, 2024 | Dec 31, 2023 |
| Currency of net investment | ||
CAD | 22.8 | 21.7 |
CZK | 14.5 | 13.8 |
NOK | 53.2 | 52.8 |
RON | 198.6 | 123.0 |
SEK | 43.3 | 43.6 |
USD | 527.7 | 470.2 |
Dec 31, 2024 | Dec 31, 2023 | |||||||
Base currency | Base currency | |||||||
10% stronger | 10% weaker | 10% stronger | 10% weaker | |||||
| Income | Income | Income | Income | |||||
| EUR million | statement | Equity | statement | Equity | statement | Equity | statement | Equity |
| Base currency / Quote currency | ||||||||
EUR/CAD | -0.5 | - | -0.1 | - | -0.3 | - | 0.3 | - |
EUR/CZK | 0.4 | - | -0.4 | - | 0.0 | - | 0.0 | - |
EUR/PLN | 0.1 | - | -0.1 | - | -0.1 | - | 0.1 | - |
EUR/NOK | -0.4 | - | -0.1 | - | -0.2 | - | -0.2 | - |
EUR/RON | -1.9 | - | 1.9 | - | -0.4 | - | 0.4 | - |
EUR/SEK | 0.0 | - | 0.0 | - | 0.2 | - | -0.2 | - |
EUR/USD | 1.0 | - | -1.0 | - | 0.5 | - | -0.5 | - |
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Dec 31, 2024 | Dec 31, 2023 | |||||||
Interest rate | Interest rate | |||||||
1%-point higher | 1%-point lower | 1%-point higher | 1%-point lower | |||||
| Income | Income | Income | Income | |||||
| EUR million | statement | Equity | statement | Equity | statement | Equity | statement | Equity |
Impact of interest rate change | -5.5 | 8.8 | 5.5 | -8.8 | -3.4 0.5 3.4 -0.5 |
Dec 31, 2024 | Dec 31, 2023 | |||||||
Electricity price | Electricity price | |||||||
5 EUR/MWh higher | 5 EUR/MWh lower | 5 EUR/MWh higher | 5 EUR/MWh lower | |||||
| Income | Income | Income | Income | |||||
| EUR million | statement | Equity | statement | Equity | statement | Equity | statement | Equity |
| Impact of electricity price change | ||||||||
Electricity forwards. Finland | - | 1.0 | - | -1.0 | - | 0.9 | - | -0.9 |
VPPA*, Romania | - | 2.2 | - | -2.2 | - | - | - | - |
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| 2024 | ||||||||
| Contractual maturities* | ||||||||
| Carrying | ||||||||
EUR million | amount | 2025 | 2026 | 2027 | 2028 | 2029 | 2030– | Tota l |
| Non-derivative financial liabilities | ||||||||
| Loans from financial institutions and pension loans | ||||||||
Fixed rate loans | 2.9 | -0.6 | -0.6 | -0.6 | -0.6 | -0.5 | -0.3 | -3.1 |
Floating rate loans | 555.2 | -24.8 | -328.9 | -131.7 | -28.1 | -30.5 | -74.5 | -618.6 |
Bond loans | 99.4 | -5.1 | -5.1 | -5.1 | -105.1 | - | - | -120.5 |
Commercial papers | 2.0 | -2.0 | - | - | - | - | - | -2.0 |
Trade and other payables | 160.6 | -160.6 | - | - | - | - | - | -160.6 |
Bank overdraft | 0.2 | -0.2 | - | - | - | - | - | -0.2 |
Lease liabilities | 129.6 | -48.5 | -35.6 | -19.0 | -11.5 | -6.6 | -21.3 | -142.5 |
| Derivative financial liabilities | ||||||||
| Interest rate derivatives | ||||||||
Designated as hedges | 4.0 | -0.8 | -1.8 | -1.0 | -0.2 | -0.1 | -0.1 | -4.0 |
| Foreign currency derivatives | ||||||||
| Measured at fair value through profit or loss | ||||||||
Cashflow out | 1.1 | -318.5 | - | - | - | - | - | -318.5 |
Cashflow in Electricity derivatives | -1.9 | 318.1 | - | - | - | - | - | 318.1 |
Designated as hedges, Finland | 1.2 | -0.6 | -0.5 | -0.2 | 0.0 | - | - | -1.3 |
Designated as hedges, Romania | -6.1 | 0.5 | 1.6 | 1.4 | 1.0 | 0.6 | 2.8 | 7.9 |
Total | 948.2 | -243.2 | -370.9 | -156.2 | -144.5 | -37.2 | -93.3 | -1,045.3 |
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| 2023 | ||||||||
| Contractual maturities* | ||||||||
| Carrying | ||||||||
EUR million | amount | 2024 | 2025 | 2026 | 2027 | 2028 | 2029– | Tot a l |
| Non-derivative financial liabilities | ||||||||
| Loans from financial institutions and pension loans | ||||||||
Fixed rate loans | 3.4 | -0.6 | -0.6 | -0.6 | -0.6 | -0.6 | -0.8 | -3.7 |
Floating rate loans | 405.6 | -122.7 | -308.7 | -0.5 | -0.5 | -0.2 | -0.3 | -433.0 |
Bond loans | 99.2 | -5.1 | -5.1 | -5.1 | -5.1 | -105.1 | - | -125.6 |
Commercial papers | - | - | - | - | - | - | - | - |
Trade and other payables | 155.9 | -155.9 | - | - | - | - | - | -155.9 |
Bank overdraft | - | - | - | - | - | - | - | - |
Lease liabilities | 130.3 | -27.5 | -23.5 | -17.1 | -10.6 | -7.2 | -20.2 | -106.0 |
| Derivative financial liabilities | ||||||||
| Interest rate derivatives | ||||||||
Designated as hedges | -1.6 | 1.6 | - | - | - | - | - | 1.6 |
| Foreign currency derivatives | ||||||||
| Measured at fair value through profit or loss | ||||||||
Cashflow out | 1.7 | -235.2 | - | - | - | - | - | -235.2 |
Cashflow in Electricity derivatives | -2.6 | 236.1 | - | - | - | - | - | 236.1 |
Designated as hedges, Finland | -0.7 | 0.7 | 0.1 | - | - | - | - | 0.7 |
Designated as hedges, Romania | - | - | - | - | - | - | - | - |
Total | 791.2 | -308.6 | -337.8 | -23.3 | -16.8 | -113.1 | -21.3 | -821.0 |
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Dec 31, 2024 | Dec 31, 2023 | |||
| Trade receivables | Impairment | Trade receivables | Impairment | |
| EUR million | gross amount | loss allowance | gross amount | loss allowance |
Not past due | 248.9 | -1.1 | 193.3 | -1.0 |
Past due less than 30 days | 19.6 | -0.4 | 22.4 | -0.6 |
Past due between 30 and 90 days | 2.6 | -0.1 | 5.7 | -0.3 |
Past due between 91 and 180 days | 1.2 | -0.2 | 1.8 | -0.2 |
Past due more than 180 days | 41.2 | -37.6 | 44.3 | -41.2 |
Total | 313.4 | -39.5 | 267.5 | -43.3 |
EUR million | 2024 | 2023 |
Loss allowance, Jan 1 | 43.3 | 197.3 |
Write-offs | -3.3 | -3.3 |
Other changes* | -0.6 | -148.9 |
Change in loss allowance recognized in profit or loss | - | -1.8 |
Loss allowance, Dec 31 | 39.5 | 43.3 |
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EUR million | 2024 | 2023 |
Average interest-bearing liabilities | 801.3 | 579.1 |
Less: Average liquid funds | 198.8 | 360.1 |
Average net debt | 602.5 | 219.0 |
Operating profit | 1.8 | 32.1 |
Add: Depreciations, amortizations and impairments | 124.2 | 114.9 |
EBITDA | 126.0 | 147.0 |
Average net debt / EBITDA | 4.78 | 1.49 |
EUR million | 2024 | 2023 |
| Equity attributable to equity | ||
holders of the parent | 1,272.4 | 1,347.6 |
Add: Non-controlling interest | - | - |
Total equity | 1,272.4 | 1,347.6 |
Total assets | 2,423.7 | 2,325.2 |
Less: Advances received | 0.0 | 0.0 |
Adjusted total assets | 2,423.7 | 2,325.2 |
Equity ratio | 52.5% | 58.0% |
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30. Fair values of derivative financial instruments
197
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2024 | 2023 | |||||
| Notional | Fair value | Fair value | Notional | Fair value | Fair value | |
| EUR million | amount | assets | liabilities | amount | assets | liabilities |
| Derivatives measured at fair value through profit or loss | ||||||
| Foreign currency derivatives | ||||||
Currency forwards | 318.6 | 1.8 | 1.0 | 227.6 | 2.6 | 1.5 |
Currency options, purchased | 10.9 | 0.1 | - | 6.7 | 0.0 | - |
Currency options, written | 29.4 | - | 0.1 | 15.6 | - | 0.3 |
| Derivatives designated as cash flow hedges | ||||||
| Interest rate derivatives | ||||||
Interest rate swaps | 300.0 | 7.8 | 11.8 | 150.0 | 2.0 | 0.4 |
| Electricity derivatives | ||||||
Electricity forwards, Finland | 9.0 | 0.1 | 1.3 | 9.1 | 1.4 | 0.6 |
VPPA*, Romania | 36.4 | 6.1 | - | - | - | - |
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| 2024 | |||||||
| Maturity | |||||||
2025 | 2026 | 2027 | 2028 | 2029 | 2030– | Tota l | |
| Interest rate swaps | |||||||
| Hedged item: Floating rate EUR debt | |||||||
Notional amount, EUR million | 50.0 | 100.0 | 150.0 | 300.0 | |||
Average fixed rate | 2.8% | 3.1% | 2.4% | 2.7% | |||
| Electricity forwards, Finland | |||||||
| Hedged item: Electricity system price | |||||||
Notional amount, EUR million | 3.5 | 3.0 | 1.8 | 0.7 | 9.1 | ||
Notional amount, GWh | 79 | 70 | 44 | 18 | 210 | ||
Average forward rate, e/MWh | 44.1 | 42.8 | 42.2 | 41.2 | 43.0 | ||
| Hedged item: Electricity Finnish | |||||||
| area price difference | |||||||
Notional amount, EUR million | 0.0 | 0.0 | |||||
Notional amount, GWh | 18 | 18 | |||||
Average forward rate, e/MWh | -1.3 | -1.3 | |||||
| VPPA*, Romania | |||||||
| Hedged item: Electricity spot price | |||||||
Forecast notional amount, EUR million | 0.7 | 3.1 | 3.6 | 3.6 | 3.6 | 21.7 | 36.4 |
Forecast notional amount, GWh | 13 | 52 | 62 | 62 | 62 | 371 | 621 |
Average forward rate, e/MWh | 58.5 | 58.5 | 58.5 | 58.5 | 58.5 | 58.5 | 58.5 |
| 2023 | |||||||
| Maturity | |||||||
2024 | 2025 | 2026 | 2027 | 2028 | 2029– | Total | |
| Interest rate swaps | |||||||
| Hedged item: Floating rate EUR debt | |||||||
Notional amount, EUR million | 150.0 | 150.0 | |||||
Average fixed rate | 1.6% | 1.6% | |||||
| Electricity forwards | |||||||
| Hedged item: Electricity system price | |||||||
Notional amount, EUR million | 4.5 | 2.8 | 1.6 | 0.4 | 9.2 | ||
Notional amount, GWh | 83 | 61 | 35 | 9 | 189 | ||
Average forward rate, e/MWh | 53.8 | 45.1 | 44.9 | 44.2 | 48.8 | ||
| Hedged item: Electricity Finnish | |||||||
| area price difference | |||||||
Notional amount, EUR million | -0.1 | 0.0 | -0.1 | ||||
Notional amount, GWh | 44 | 18 | 61 | ||||
Average forward rate, e/MWh | -2.1 | -1.3 | -1.9 | ||||
| VPPA*, Romania | |||||||
| Hedged item: Electricity spot price | |||||||
Forecast notional amount, EUR million | - | - | - | - | - | - | - |
Forecast notional amount, GWh | - | - | - | - | - | - | - |
Average forward rate, e/MWh | - | - | - | - | - | - | - |
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| 2024 | |||
| Interest rate | Electricity | ||
| derivatives | derivatives | ||
| Electricity | |||
EUR million | Interest rate swaps | forwards, Finland | VPPA*, Romania |
Notional amount | 300.0 | 9.0 | 36.4 |
Notional amount, GWh | - | 228 | 621 |
| Assets | |||
Carrying amount | 7.8 | 0.1 | 6.1 |
| Line item in the statement of financial | Trade and other | Trade and other | Trade and other |
| position | receivables | receivables | receivables |
| Liabilities | |||
Carrying amount | 11.8 | 1.3 | - |
| Line item in the statement of financial | Trade and other | Trade and other | Trade and other |
| position | payables | payables | payables |
| Change in value for recognizing hedge | |||
| ineffectiveness | |||
Hedged item | 3.5 | 3.0 | -6.1 |
Hedging instrument | -3.5 | -3.0 | 6.1 |
| Effective portion | |||
Amount recognized in other comprehensive income | -3.5 | -3.0 | 6.1 |
| Amount reclassified from the cash flow | |||
hedge reserve to profit or loss | -2.0 | 1.0 | - |
Line item in the income statement | Financial items | Cost of sales | Cost of sales |
| Ineffective portion | |||
Amount recognized in profit or loss | - | - | 0.0 |
| Other operating | |||
Line item in the income statement | Financial items | income or expenses |
| 2023 | |||
| Interest rate | Electricity | ||
| derivatives | derivatives | ||
| Electricity | |||
EUR million | Interest rate swaps | forwards, Finland | VPPA*, Romania |
Notional amount | 150.0 | 9.1 | - |
Notional amount, GWh | - | 250 | - |
| Assets | |||
Carrying amount | 2.0 | 1.4 | - |
| Line item in the statement of financial | Trade and other | Trade and other | Trade and other |
| position | receivables | receivables | receivables |
| Liabilities | |||
Carrying amount | 0.4 | 0.6 | - |
| Line item in the statement of financial | Trade and other | Trade and other | Trade and other |
| position | payables | payables | payables |
| Change in value for recognizing hedge | |||
| ineffectiveness | |||
Hedged item | -0.3 | 7.9 | - |
Hedging instrument | 0.3 | -7.9 | - |
| Effective portion | |||
Amount recognized in other comprehensive income | 0.3 | -7.9 | - |
| Amount reclassified from the cash flow | |||
hedge reserve to profit or loss | -2.7 | -0.8 | - |
Line item in the income statement | Financial items | Cost of sales | Cost of sales |
| Ineffective portion | |||
Amount recognized in profit or loss | - | - | - |
| Other operating | Other operating | ||
Line item in the income statement | Financial items | income or expenses | income or expenses |
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EUR million | 2024 | 2023 |
| For own debt | ||
Pledged assets | 5.9 | 5.9 |
| Other own commitments | ||
Guarantees | 1.2 | 0.3 |
EUR million | 2024 | 2023 |
Cash flow hedge reserve, Jan 1 | 1.6 | 10.5 |
| Cash flow hedges | ||
Change in fair value recognized in other comprehensive income | ||
Interest rate swaps | -3.5 | 0.3 |
Electricity forwards, Finland | -3.0 | -7.9 |
VPPA*, Romania | 6.1 | - |
| Amount reclassified to profit or loss | ||
Interest rate swaps | -2.0 | -2.7 |
Electricity forwards, Finland | 1.0 | -0.8 |
VPPA*, Romania | - | - |
Tax effect | 0.5 | 2.2 |
Cash flow hedge reserve, Dec 31 | 0.8 | 1.6 |
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Risk mitigation measures: Ensuring high-quality research and
development activities. Continuous monitoring of the markets and
customer needs. Sufficient resources for product testing. Developing
distribution channels and network.
Implementation of the investment project in Romania
To ensure tire availability, Nokian Tyres is investing in new zero CO
2
emission production capacity in Romania. Delay in the planned start
of commercial production and the ramp-up of production processes
may negatively affect Nokian Tyres’ financial performance and growth
opportunities, especially in Central Europe.
Risk mitigation measures: Close monitoring and management of
the investment project. Preparation and continuous follow-up of a
risk management plan. Ability to quickly react to significant changes.
Retention and recruitment of skilled personnel.
Currency market
Nokian Tyres’ operations are exposed to currency risks arising from
currency transactions and the translation of subsidiary financial
statements, which may affect Nokian Tyres’ results and profitability.
The most significant currency risks are caused by the Swedish and
Norwegian krona and the US and Canadian dollar. Approximately 60%
of the Group’s sales are generated outside the euro-zone.
Risk mitigation measures: Hedging against the effects of
exchange rate fluctuations (see note 29 to the financial statements).
Information technology and cybersecurity
The availability of information systems and network services is
crucial to Nokian Tyres. Unplanned interruption in critical information
systems and network services may cause disruption to the continuity
of operations. These systems and services may also be exposed to
cyberattacks, which may lead to a leakage of confidential information,
violation of data privacy regulations or intellectual property rights,
production and delivery interruptions, or reputational damage. Risk
analyses and projects related to cybersecurity, data protection, and
customer information are continuously a special focus area for the
company.
Risk mitigation measures: Sufficient investments and resources
in IT infrastructure and capabilities, as well as cybersecurity.
Appropriate plans to respond to disruptions in information systems
and network services, including backup systems and recovery plans.
Continuous monitoring of cybersecurity and data protection and
vulnerability management. Employee training.
Diversified customer base
Building a diversified customer base and fostering strong customer
relationships help reduce sales risk and create long-term business
stability. Excessive concentration of the customer base can make
the company dependent on a limited number of large customers,
exposing the business to risks and potentially leading to a decline in
sales and profitability.
Risk mitigation measures: Continuous monitoring of the
markets and proactive response to changes in the customer base.
Deepening cooperation with existing key customers, for example,
in the development of new products. Expanding the customer base
geographically and in selected segments within current markets.
Developing the distribution network and services, especially in key
growth areas.
Environment, social responsibility and governance
Various aspects of corporate sustainability, including product
quality, safety, the environment, and human rights, are increasingly
important. Legislation and regulation, particularly around
environmental, social responsibility and governance (ESG) issues, are
increasing and affecting all actors in the value chain. Non-compliance
with laws, regulations, or standards by Nokian Tyres or its suppliers,
customers, or partners, neglecting new and tightening requirements,
or incorrectly interpreting them may result in additional costs for
Nokian Tyres or lead to fines and damage the company’s reputation
and brand. Over-reliance on individual suppliers increases the risk
related to the availability of sustainable raw materials.
Risk mitigation measures: Active monitoring of upcoming laws
and regulations. Development and implementation of internal
guidance, processes and training to ensure compliance. Strong
commitment to achieving ESG targets. Expanding the supplier
network. Regular environmental, human rights, and quality audits.
Climate change
Tire industry may be subject to risks caused by climate change, such
as changes in consumer tire preferences and regulatory changes.
Extreme weather events may also affect natural rubber production,
and fluctuations in raw material prices as well as new environmental
fees may increase, potentially impacting profitability. Nokian Tyres
is committed to reducing GHG emissions from its operations to
combat climate change. The company calculates the GHG emissions
from its operations annually and reduces them systematically.
Risk mitigation measures: Increasing the use of recyclable
and renewable raw materials. Membership in industry associations
helps identify new sustainable product development and business
opportunities.
Employee retention and competence
Nokian Tyres’ success relies heavily on employing the right people
in the right positions. Failure to attract competent and committed
professionals, coupled with an inability to provide a motivating work
environment, may have an adverse impact on the implementation of
Nokian Tyres’ strategy and the achievement of its financial targets.
Risk mitigation measures: Creating an attractive and safe
workplace, including modern work tools and competitive salaries and
other benefits. Developing employer brand to attract the best talent.
Ensuring critical competencies and targeted recruitment.
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Legal proceedings
In January 2024, the European Commission initiated an unannounced
inspection at Nokian Tyres plc’s headquarters in Nokia, Finland. The
European Commission has expressed its concerns that the inspected
tire manufacturing companies may have violated EU antitrust rules
that prohibit cartels and restrictive business practices. Nokian Tyres
does not have information on the outcome of the inspection, and it
cannot comment on the ongoing investigation. Nokian Tyres is fully
co-operating with the authorities.
Lawsuits in the United States and Canada followed the news of
the European Commission inspection. Nokian Tyres was named as a
defendant in these lawsuits, along with other tire manufacturers.
The lawsuits allege violations by the defendants of antitrust laws
with respect to new replacement tires for passenger cars, vans,
trucks and busses sold in the relevant jurisdictions. The U.S. lawsuits
have been consolidated to a multidistrict litigation in the U.S. District
Court for the Northern District of Ohio. Nokian Tyres considers the
lawsuits to be without merit, however, the ultimate outcome of which
cannot be predicted at this time.
In May 2017, the Finnish Financial Supervisory Authority filed a
request for investigation with the National Bureau of Investigation
regarding possible securities market offences. In October 2020, the
prosecutor announced the decision to press charges against a total
of six persons who acted as Board members and the President and
CEO of Nokian Tyres in 2015–2016. The prosecutor also claimed a
corporate fine against the company. In addition, four persons who
were employees at Nokian Tyres in 2015 were charged for abuse
of inside information. The District Court of Helsinki dismissed all
charges and claims by the prosecutor in its ruling in June 2022. The
decision is not yet legally binding, and the prosecutor has appealed
against the decision of the District Court. The proceedings are
ongoing in the Appeal Court.
Tax disputes
There are no ongoing tax disputes in Nokian Tyres entities. Routine
tax audits in Nokian Tyres Group entities may possibly lead to
a reassessment of taxes.
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| Parent | |||||
| Group | Voting | company | |||
Domicile | Country | holding, % | rights, % | holding, % | |
| Parent company | |||||
Nokian Tyres plc | Nokia | Finland | |||
| Group companies | |||||
Nokian Heavy Tyres Ltd. | Nokia | 100 | 100 | 100 | |
Levypyörä Oy | Nastola | 100 | 100 | ||
Nokian Däck AB | Sweden | 100 | 100 | 100 | |
Nokian Dekk AS | Norway | 100 | 100 | 100 | |
Nokian Tyres GmbH | Germany | 100 | 100 | 100 | |
Nokian Tyres AG | Switzerland | 100 | 100 | 100 | |
Nokian Tyres SP Z.O.O | Poland | 100 | 100 | 100 | |
Nokian Tyres U.S. Holdings Inc. | USA | 100 | 100 | 100 | |
Nokian Tyres Inc | USA | 100 | 100 | ||
Nokian Tyres U.S. Operations LLC | USA | 100 | 100 | ||
Nokian Tyres Canada Inc. | Canada | 100 | 100 | 100 | |
Nokian Tyres s.r.o. | Czech Rep. | 100 | 100 | 100 | |
TOV Nokian Shina | Ukraine | 100 | 100 | 100 | |
Nokian Tyres Holding Oy | Nokia | Finland | 100 | 100 | 100 |
Nokian Tyres Trading (Shanghai) Co Ltd | China | 100 | 100 | ||
NT Tyre Machinery Oy | Nokia | Finland | 100 | 100 | |
Koy Nokian Nosturikatu 18 | Nokia | Finland | 100 | 100 | 100 |
Koy Nokian Rengaskatu 4 | Nokia | Finland | 100 | 100 | 100 |
Nokian Portti Oy | Turku | Finland | 100 | 100 | 100 |
Nokian Tyres Spain S.L.U. | Spain | 100 | 100 | 100 | |
Nokian Tyres Spain Operations S.L.U | Spain | 100 | 100 | 100 | |
Nokian Tyres Europe Operations S.R.L. | Romania | 100 | 100 | 100 |
| Parent | |||||
| Group | Voting | company | |||
Domicile | Country | holding, % | rights, % | holding, % | |
Nokian Tyres SAS | France | 100 | 100 | 100 | |
Nokianvirran Energia Oy | Nokia | Finland | 32.3 | 32.3 | 32.3 |
Vianor Holding Oy | Nokia | Finland | 100 | 100 | 100 |
Vianor Oy | Lappeenranta | Finland | 100 | 100 | |
Vianor AB | Sweden | 100 | 100 | ||
Nordic Wheels AB | Sweden | 100 | 100 | ||
Vianor AS | Norway | 100 | 100 | ||
EAM NRE1V Holding Oy | Finland | 0 | 100 |
| Associated companies | |||||
Sammaliston Sauna Oy | Nokia | Finland | 33 | 33 | 33 |
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1,000 euros | 2024 | 2023 |
| Key management personnel | ||
| Employee benefit expenses | ||
Short-term employee benefits | 4,006.4 | 5,687.4 |
Post-employment benefits | - | - |
Termination benefits | - | - |
Share-based payments | 19.9 | 700.7 |
Total | 4,026.3 | 6,388.1 |
| Remunerations | ||
| Jukka Moisio, President and CEO | ||
(May 27, 2020–December 31, 2024) | 817.8 | 1,421.0 |
of which incentives for the reported period | - | 538.7 |
| Members of the Board of Directors | ||
Jukka Hienonen | 127.6 | 121.9 |
Pekka Vauramo | 88.6 | 86.9 |
Elina Björklund | 85.8 | - |
Susanne Hahn | 70.3 | 67.2 |
Markus Korsten | 69.6 | 62.3 |
Elisa Markula | 62.6 | - |
Christopher Ostrander | 95.6 | 72.8 |
Jouko Pölönen | 88.6 | 86.9 |
Reima Rytsölä | 66.1 | 60.9 |
1,000 euros | 2024 | 2023 |
Prior members of the Board of Directors | 0 | |
Heikki Allonen | - | 4.2 |
Veronica Lindholm | 3.5 | 86.9 |
Inka Mero | - | 4.2 |
George Rietbergen | 3.5 | 64.4 |
Total | 761.8 | 718.6 |
1,000 euros | 2024 | 2023 |
Other key management personnel | 2,426.7 | 4,248.5 |
of which incentives for the reported period | 19.9 | 1,888.6 |
2024 | 2023 | |
| Granted, pcs | ||
Shares | 403,224 | 313,565 |
Share options | - | - |
2024 | 2023 | |
| Held, pcs | ||
Shares | 146,855 | 126,224 |
Share options | - | - |
Exercisable | - | - |
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Parent company income statement, FAS
EUR Note 2024 2023
Net sales 1 799,066,104.95 712,531,189.30
Cost of sales 2, 3 -669,940,616.41 -590,984,413.66
Gross profit 129,125,488.54 121,546,775.64
Selling, marketing and R&D expenses 2, 3 -35,932,822.90 -33,974,308.84
Administration expenses 2, 3, 4 -46,781,946.57 -48,827,867.60
Other operating expenses 2, 3 -118,316,404.38 -72,707,151.26
Other operating income 230,848.27 450,551.00
Operating result -71,674,837.04 -33,512,001.06
Financial income and expenses 5 825,754.23 227,568,009.08
Result before appropriations and tax -70,849,082.81 194,056,008.02
Appropriations 6 53,003,817.68 620,081.12
Income tax 7 7,384,164.17 9,044,866.45
Result for the period -10,461,100.96 203,720,955.59
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Parent company balance sheet, FAS
EUR Note 2024 2023
Assets
Fixed assets and other non-current assets
Intangible assets 8 12,128,560.86 8,158,113.80
Tangible assets 8 213,742,480.33 198,527,380.21
Shares in Group companies 9 654,534,599.40 569,526,472.26
Investments in associates 9 4,261,050.20 4,261,050.20
Shares in other companies 9 153,111.50 153,111.50
Unquoted securities 9 2,878,044.09 2,705,882.35
Total non-current assets 887,697,846.38 783,332,010.32
Current assets
Inventories 10 206,373,798.10 231,448,002.79
Non-current receivables 11, 12 397,290,584.36 206,820,763.01
Current receivables 13 279,042,697.57 237,688,248.76
Cash and cash equivalents 152,313,165.23 390,239,744.15
Total current assets 1,035,020,245.26 1,066,196,758.71
1,922,718,091.64 1,849,528,769.03
EUR Note 2024 2023
Liabilities and shareholder’s equity
Shareholders' equity 14
Share capital 25,437,906.00 25,437,906.00
Share premium 182,505,622.52 182,505,622.52
Treasury shares -16,593,451.01 -16,678,211.37
Fair value and hedging reserves -4,376,391.26 1,605,198.77
Paid up unrestricted equity fund 238,231,226.51 238,231,226.51
Retained earnings 562,036,013.28 434,143,287.09
Result for the period -10,461,100.96 203,720,955.59
Total shareholders' equity 976,779,825.08 1,068,965,985.11
Untaxed reserves and provisions
Accumulated depreciation in excess of plan 8 2,171,757.81 32,755,575.49
Provisions
Warranty provision 868,000.00 868,000.00
Liabilities
Non-current liabilities 12, 15 653,792,010.51 400,205,608.82
Current liabilities 16 289,106,498.24 346,733,599.61
Total liabilities 942,898,508.75 746,939,208.43
1,922,718,091.64 1,849,528,769.03
From 2024, warranty provision is presented in provisions.
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Parent company statement of cash flows, FAS
EUR million 2024 2023
Result for the period -10.5 203.7
Adjustments for
Depreciation, amortization and impairment 30.6 32.8
Financial income and expenses -0.8 -227.6
Gains and losses on sale of intangible assets, other changes -53.0 -0.6
Income Taxes -7.4 -9.0
Cash flow before changes in working capital -41.1 -0.7
Changes in working capital
Current receivables, non-interest-bearing, increase (-) / decrease (+) -27.1 20.3
Inventories, increase (-) / decrease (+) 25.1 -23.8
Current liabilities, non-interest-bearing, increase (+) / decrease (-) -77.6 99.8
Changes in working capital -79.6 96.2
Financial items and taxes
Interest and other financial items, received 19.8 28.9
Interest and other financial items, paid -34.6 -29.3
Dividends received 17.2 232.2
Income taxes paid 0.0 -0.4
Financial items and taxes 2.4 231.4
EUR million 2024 2023
Cash flow from operating activities (A) -118.3 327.0
Cash flows from investing activities
Acquisitions of property, plant and equipment and intangible assets -51.4 -57.5
Proceeds from sale of property, plant and equipment and
intangible assets 0.2 0.6
Acquisitions of other investments -85.0 -146.1
Cash flows from investing activities (B) -136.2 -203.0
Cash flow from financing activities:
Change in current financial receivables, increase (-) / decrease (+) -3.6 123.1
Change in non-current financial receivables, increase (-) / decrease (+) -182.3 22.5
Change in current financial borrowings, increase (+) / decrease (-) 14.1 -273.9
Change in non-current financial borrowings, increase (+) / decrease (-) 254.0 295.8
Group contributions 6.3 5.0
Dividends paid -72.0 -72.2
Cash flow from financing activities (C) 16.6 100.4
Change in cash and cash equivalents, increase (+) / decrease (-) (A+B+C) -2 3 7.9 224.4
Cash and cash equivalents at the beginning of the period 390.2 165.8
Cash and cash equivalents at the end of the period 152.3 390.2
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Statements
Accounting policies for the parent company
General
The financial statements of Nokian Tyres plc, domiciled in the city
of Nokia, have been prepared according to the Finnish Accounting
Standards (FAS).
Inventory valuation
Inventories are measured at the lower of cost or the net realizable
value. Cost is primarily determined in accordance with standard cost
accounting. The cost of finished goods and work in progress includes
raw material purchase costs, direct manufacturing wages, other
direct manufacturing costs, and a share of production overheads,
borrowing costs excluded. Net realizable value is the estimated
sales price in ordinary activities less the costs associated with the
completion of the product and the estimated necessary costs
incurred to make the sale of the product. Allowance is recorded in
obsolete items.
Fixed assets and depreciation
Fixed assets are stated in the balance sheets at cost less
depreciation according to plan. The accumulated difference
between the total depreciation charged to the income statement
and depreciation according to plan is shown as a separate item in
untaxed reserves.
Depreciations according to plan are calculated on the basis of the
estimated useful life of the assets using the straight line method.
The depreciation times are as follows:
Intangible assets 3–10 years
Buildings 20–40 years
Machinery and equipment 4–20 years
Other tangible assets 10–40 years
Land property, as well as investments in shares, are not regularly
depreciated.
Research and development
Research and development costs are charged to the other operating
expenses in the income statement in the year in which they have
incurred. Certain significant development costs with useful life over
three years are capitalized and are amortized on a systematic basis
over their expected useful lives. The amortization period is between
three and five years.
Pensions and coverage of pension liabilities
Pension contributions are based on periodic actuarial calculations
and are charged to the income statement.
In Finland the pension schemes are funded through payments to
a pension insurance company.
Equity
The acquisition cost of treasury shares repurchased by the Group is
recognized as a deduction in equity. The consideration received for
the treasury shares when sold, net of transaction costs and tax, is
included in equity.
Foreign currency items
Transactions in foreign currencies are recorded at the exchange
rates ruling at the dates of the transactions. At the end of
the accounting period unsettled balances on foreign currency
transactions and forward exchange contracts are valued at the
rates published by the European Central Bank as on the financial
statement date. If European Central Bank doesn’t quote a currency,
the exchange rates announced by that country are used.
All foreign currency exchange gains and losses are entered under
financial income and expenses.
Taxes
Taxes in the income statement include taxes calculated from the
financial year’s result based on Finnish tax regulations, adjustments
to taxes from previous financial years and deferred taxes. Deferred
tax liability or asset is calculated from all temporary differences
between accounting and taxation using the tax rate for the following
years confirmed at the time of closing the accounts. Deferred tax
liabilities are recorded in the balance sheet in their full amount and
deferred tax assets in the amount of the estimated probable tax
benefit.
Fair values of derivative financial instruments
Derivative contracts are initially recorded in the balance sheet at
fair value and later valued at fair value in the financial statements
(Act 5:2a). The valuation of derivatives and the principles of hedge
accounting are explained in more detail in the Group note 30.
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Notes to the financial statements of the parent company
1. Net sales by segments and market areas
EUR million 2024 2023
Passenger Car Tyres 596.7 488.7
Heavy Tyres 202.4 223.8
Tota l 799.1 712.5
Finland 146.3 145.9
Nordics 216.3 194.0
Other Europe 290.3 214.5
Americas 142.2 150.7
Other countries 4.0 7.4
Tota l 799.1 712.5
2. Personnel expenses
EUR million 2024 2023
Wages and salaries 58.5 59.9
Pension contributions 9.6 10.2
Other social expenses 1.4 0.9
Tota l 69.5 71.1
Remuneration of the members
of the Board of the Directors and
the President on accrual basis 1.6 2.1
of which incentives - 0.5
No special pension commitments have been granted to the
members of the Board of Directors and no statutory pension
expense incurs. President and CEO Jukka Moisio did not have a
supplementary pension plan and his retirement age was in accordance
to the statutory pension regulations. The other management
has a suplamentary penson plan of 10% of the annual salary and a
retirement age of 63 years. See also Notes to Consolidated Financial
Statement, note 34 Related party transactions.
Personnel, average during the year 2024 2023
Tota l 886 848
3. Depreciation
EUR million 2024 2023
Depreciation according to plan by asset
category
Intangible assets 3.4 3.0
Buildings 2.2 2.2
Machinery and equipment 24.5 26.8
Other tangible assets 0.5 0.5
Tota l 30.6 32.4
Depreciation by function
Production 22.0 24.7
Selling, marketing and R&D 3.2 3.3
Administration 5.4 4.5
Tota l 30.6 32.4
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4. Auditors’ fees
EUR million 2024 2023
Audit fee 0.8 0.8
Other services 0.1 0.0
Tota l 0.9 0.8
5. Financial income and expenses
EUR million 2024 2023
Dividend income
From the Group companies 17.2 232.2
Tota l 17.2 232.2
Interest income, non-current
From the Group companies 9.4 9.3
Tota l 9.4 9.3
Income from shares in companies of the
same Group - 0.5
Other interest and financial income
From the Group companies 3.8 5.1
From others 7.2 10.3
Tota l 10.9 15.5
Exchange rate differences (net) -2.0 -3.9
Interest and other financial expenses
To the Group companies -2.0 -5.0
To others -30.7 -18.1
Other financial expenses -2.0 -2.8
Tota l -34.7 -25.9
Total financial income and expenses 0.8 2 27.6
In March 2023, Nokian Tyres plc announced the completion of
the sale of its operations in Russia to PJSC Tatneft, after which
all Nokian Tyres’ operations in Russia ended and the company’s
personnel in Russia was transferred to the new owner. Closing date of
sale transaction of Russian operations is considered to be March 16,
2023 when sale price was received. Income and expenses related to
the exit from Russian operations have been netted.
6. Appropriations
EUR million 2024 2023
Change in accumulated depreciation
in excess of plan
Intangible assets 3.4 0.2
Buildings 2.2 0.2
Machinery and equipment 24.4 -6.0
Other tangible assets 0.6 0.0
Tota l 30.6 -5.7
Other appropriations
Group contributions 22.4 6.3
Tota l 22.4 6.3
Total appropriations 53.0 0.6
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7. Income tax
EUR million 2024 2023
Direct tax for the year - -0.2
Direct tax from previous years 0.2 -0.1
Change in deferred tax 7.2 9.3
Tota l 7.4 9.0
8. Fixed assets
Intangible assets Tangible assets
EUR million
Intangible
rights
Other
intangible
rights
Land
property Buildings
Machinery
and equip-
ment
Other
tangible
assets
Advances and
fixed assets
under
construction
Accumulated cost, Jan 1, 2024 71.0 9.6 4.0 92.6 576.3 8.8 29.4
Increase 1.0 0.6 15.4 0.0 34.3
Decrease 0.0 -2.3
Transfer between items 6.4 0.1 22.3 1.1 -29.9
Accumulated cost, Dec 31, 2024 78.4 9.6 4.6 92.7 611.7 10.0 33.9
Accum. depr. acc. to plan Jan 1, 2024 -62.9 -9.6 -55.9 -451.5 -5.4
Accum. depr. on disposals 0.7
Depreciations for the period -3.4 0.0 -2.2 -24.4 -0.5
Accum. depr. acc.to plan, Dec 31, 2024 -66.3 -9.6 -58.1 -475.2 -5.9
Carrying amount, Dec 31, 2024 12.1 0.0 4.6 34.6 136.5 4.1 33.9
Carrying amount, Dec 31, 2023 8.1 0.1 4.0 36.8 124.8 3.5 29.4
Accum. depreciation in excess of plan, Dec 31, 2024 -2.4 0.0 - 6.2 -1.4 -0.3
Accum. depreciation in excess of plan, Dec 31, 2023 1.0 0.0 - 8.4 23.0 0.3
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9. Investments
EUR million
Shares in Group
companies
Investments in
associates
Shares in other
companies
Unquoted
securities
Accumulated cost, Jan 1, 2024 569.5 4.3 0.2 2.7
Increase 85.0
Exchange rate difference 0.2
Accumulated cost, Dec 31, 2024 654.5 4.3 0.2 2.9
Carrying amount, Dec 31, 2024 654.5 4.3 0.2 2.9
Carrying amount, Dec 31, 2023 569.5 4.3 0.2 2.7
10. Inventories
EUR million 2024 2023
Raw materials and supplies 78.5 74.2
Work in progress 4.0 3.5
Finished goods 123.9 153.7
Tota l 206.4 231.4
11. Non-current receivables
EUR million 2024 2023
Loan receivables from the Group companies 363.6 181.3
Loan receivables from others 0.4 0.5
Other non-current receivables - 0.0
Deferred tax assets 37.1 25.0
Total long-term receivables 401.1 206.8
The members of the Board of Directors and the President have not
been granted loans.
12. Deferred tax assets and liabilities
EUR million
31.12.
2023
Recognized
in income
statement
Fair
value
changes
31.12.
2024
Deferred tax assets
Intangible assets 3.6 3.6
Provisions and accruals 0.2 0.2
Tax losses carried forward 24.8 1.6 26.4
Cash flow hedges 0.0 1.1
1.1
Other Items 2.0 2.0
Deferred tax assets 25.0 7.2 1.1 33.3
Deferred tax liabilities
Cash flow hedges 0.4 -0.4 0.0
Deferred tax liabilities 0.4 -0.4 0.0
EUR million
31.12.
2022
Recognized
in income
statement
Fair
value
changes
31.12.
2023
Deferred tax liabilities
Provisions and accruals 0.2 0.2
Tax losses carried forward 15.5 9.3 24.8
Cash flow hedges 0.0 0.0 0.0
Deferred tax assets 15.7 9.3 0.0 25.0
Deferred tax liabilities
Cash flow hedges 2.6 -2.2 0.4
Deferred tax liabilities 2.6 -2.2 0.4
On December 31, 2024 the parent company had carry forward
losses for EUR 132.2 (124.1) million, of which a deferred tax assets
has been recognised. Carry forward losses EUR 132.2 million will
expire during years 2032–2034.
The calculated tax liability of accumulated depreciation differences
not recorded in the balance sheet in 2024 was EUR 0.4 million.
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13. Current receivables
EUR million 2024 2023
Receivables from the Group companies
Trade receivables 153.7 128.3
Loan receivables 31.6 28.0
Accrued revenues and deferred expenses 38.9 24.7
Tota l 224.2 181.0
Trade receivables 37.7 39.6
Other receivables 7.4 6.9
Accrued revenues and deferred expenses 9.8 10.2
Tota l 54.9 56.7
Total short-term receivables 279.0 237.7
Significant items under accrued revenues
and deferred expenses
Financial items 11.1 11.7
Taxes 0.4 0.2
Social payments 0.4 0.3
Capital expenditure in factories - 0.0
Goods and services rendered and not
invoiced, subsidiary 9.9 12.3
Group contributions 22.4 6.3
Other items 4.5 3.9
Tota l 48.6 34.9
EUR million 2024 2023
Treasury shares -16.6 -16.7
Result for the period -10.5 203.7
Total non-restricted shareholders’ equity 773.2 859.4
Total shareholders’ equity 976.8 1,069.0
Specification of the distributable funds,
Dec 31
Retained earnings
562.0 434.1
Treasury shares
-16.6 -16.7
Paid-up unrestricted equity reserve
238.2 238.2
Result for the period
-10.5 203.7
Distributable funds, Dec 31 773.2 859.4
No share repurchases were made during the review period, and the
company did not possess any own shares on December 31, 2024.
Nokian Tyres has an agreement from 2017 with a third-party
service provider concerning the share-based incentive program for
key personnel. The third party owns Nokian Tyres’ shares related to
the incentive program until the shares are given to the participants
of the program. In accordance with IFRS, these repurchased
shares have been reported as treasury shares in the Consolidated
Statement of Financial Position. On December 31, 2024, the number
of these shares was 1,052,242 (1,054,507). On December 31, 2024, this
number of shares corresponded to 0.76 (0.76) percent of the total
shares and voting rights in the company.
14. Shareholders’ equity
EUR million 2024 2023
Restricted shareholders' equity
Share capital, Jan 1 25.4 25.4
Emissions
- -
Share capital, Dec 31
25.4 25.4
Share issue premium, Jan 1
182.5 182.5
Emission gains
- -
Share issue premium, Dec 31
182.5 182.5
Fair value and hedging reserves, Jan 1 1.6 10.5
Fair value changes -6.0 -8.9
Fair value and hedging reserves, Dec 31 -4.4 1,6
Total restricted shareholders’ equity
203.6 209.5
Non-restricted shareholders’ equity
Paid-up unrestricted equity reserve, Jan 1
238.2 238.2
Emission gains
- -
Paid-up unrestricted equity reserve, Dec 31
238.2 238.2
Retained earnings, Jan 1
637.9 510.1
Dividends to shareholders -75.8 -76.0
Retained earnings, Dec 31 562.0 434.1
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16. Current liabilities
EUR million 2024 2023
Interest-bearing
Liabilities to the Group companies
Finance loans 118.4 106.3
Commercial papers 2.0 -
Total interest-bearing liabilities 120.4 106.3
Non-interest-bearing
Liabilities to the Group companies
Trade payables 20.8 12.1
Accrued expenses and deferred revenues 19.1 8.2
Tota l 39.9 20.3
Trade payables 81.3 77.5
Liabilities to the others 11.1 114.5
Accrued expenses and deferred revenues 36.5 28.1
Tota l 128.8 220.1
Total non-interest-bearing liabilities 168.7 240.5
Total current liabilities 289.1 346.7
EUR million 2024 2023
Significant items under accrued expenses
and deferred revenues
Wages, salaries and social security
contributions 10.3 9.6
Annual discounts, sales 11.2 10.2
Financial items 13.8 7.4
Commissions 0.1 -
Other items 20.2 9.1
Tota l 55.6 36.3
From 2024, the warranty provision is presented in provisions.
The impact of the change on accrued expenses and deferred
revenues in 2023 is EUR 0.9 million.
15. Non-current liabilities
EUR million 2024 2023
Interest-bearing
Bonds 99.4 99.2
Loans from financial institutions 553.3 300.0
Deferred tax liabilities 0.0 0.4
Tota l 652.7 399.7
Non-interest-bearing
Accrued expenses and deferred revenues 1.1 0.5
Tota l 1.1 0.5
Total non-current liabilities 653.8 400.2
In March 2024, one-year extension options were exercised for a total
of EUR 300 million in long-term bilateral sustainability-linked term
loans. Consequently, the maturity dates for these facilities were
extended from April 2025 to April 2026. Additionally, the EUR 100
million bilateral sustainability-linked term loan due in May 2024 was
refinanced with a similar three-year term loan that includes extension
options of up to two years. A EUR 150 million bilateral 8-year term loan
with the European Investment Bank (EIB) was withdrawn in August to
support Nokian Tyres’ strategic factory investment in Romania.
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18. Derivative financial instruments
EUR million 2024 2023
Interest rate derivatives
Interest rate swaps
Notional amount 300.0 150.0
Fair value -4.0 1.6
Foreign currency derivatives
Currency forwards
Notional amount 328.1 239.8
Fair value 0.7 1.1
Currency options, purchased
Notional amount 10.9 6.7
Fair value 0.1 0.0
Currency options, written
Notional amount 29.4 15.6
Fair value -0.1 -0.3
Electricity derivatives
Electricity forwards
Notional amount 9.0 9.1
Fair value -1.2 0.7
Unrealised fair value changes of interest rate and electricity
derivatives are not recognized in profit and loss. Interest rate swaps
hedge the future interest payments of loans from financial
institutions and the electricity forwards hedge the future electricity
purchase prices in Finland. The contractual terms of these derivatives
and the hedged items are congruent. The cash flows of the
interest rate swaps and electricity forwards will occur during the next
eight years.
The fair value of forward exchange contracts is measured using
the forward rates on the reporting date. The fair value of currency
options is calculated using an option valuation model.
Interest rate derivatives are determined based on market interest
rates on the reporting date.
The fair value of electricity derivatives is based on quoted market
prices in active markets on the reporting date.
19. Environmental commitments and
expenses
Expenses relating to environment are included to production costs.
The company has duly attended to environmental commitments and
has no information on material environmental liabilities. All material
environmental matters are reported as part of the Sustainability
Statement, which is included in the Report by the Board of Directors.
The CSRD-aligned Sustainability Statement has been prepared on a
consolidated basis for the entire Nokian Tyres Group.
17. Contingent liabilities
EUR million 2024 2023
For own debt
Pledged assets 5.8 4.0
On behalf of Group companies and
investments in associates
Guarantees 130.4 112.5
Pledged assets - 2.0
The amount of debts and commitments mortgaged for total EUR
115.6 (98.3) million in 2024.
Other own commitments
Guarantees 1.0 -
Leasing and rent commitments
Payments due in 2025 12.0 9.2
Payments due in subsequent years 5.9 8.2
Signatures for the financial statements
and the report by the Board of Directors
The auditor’s note
As required by the accounting act, we state the following
• the financial statements, prepared in accordance with applicable accounting regulations, give
a true and fair view of the assets, liabilities, financial position, and profit or loss of both the
company and the group of companies included in its consolidated financial statements;
• the management report contains a truthful description of the development and result of
the business operations of both the company and the group of companies included in its
consolidated financial statements, as well as a description of the most significant risks and
uncertainties and other aspects of the company’s condition; and
• the sustainability statement included in the management report has been prepared in
accordance with the reporting standards referred to in Chapter 7 and Article 8 of the Taxonomy
Regulation.
Helsinki, February 4, 2025
Jukka Hienonen Pekka Vauramo
Elina Björklund Susanne Hahn
Markus Korsten Elisa Markula
Christopher Ostrander Jouko Pölönen
Reima Rytsölä Paolo Pompei
President and CEO
Report on the audit of the financial statements has been given today.
Helsinki, February 4, 2025
Ernst & Young Oy
Authorized Public Accountant Firm
Mikko Järventausta
Authorized Public Accountant
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Auditor’s report
Report on the Audit of the Financial
Statements
Opinion
We have audited the financial statements of Nokian Tyres plc
(business identity code 0680006-8) for the year ended 31 December,
2024. The financial statements comprise the consolidated balance
sheet, income statement, statement of comprehensive income,
statement of changes in equity, statement of cash flows and notes,
including material accounting policy information, as well as the
parent company’s balance sheet, income statement, statement of
cash flows and notes.
In our opinion
• the consolidated financial statements give a true and fair view
of the group’s financial position, financial performance and cash
flows in accordance with IFRS Accounting Standards as adopted
by the EU.
• the financial statements give a true and fair view of the
parent company’s financial performance and financial position
in accordance with the laws and regulations governing the
preparation of financial statements in Finland and comply with
statutory requirements.
Our opinion is consistent with the additional report submitted to
the Audit Committee.
To the Annual General Meeting of Nokian Tyres plc
Basis for Opinion
We conducted our audit in accordance with good auditing practice in
Finland. Our responsibilities under good auditing practice are further
described in the Auditor’s Responsibilities for the Audit of the
Financial Statements section of our report.
We are independent of the parent company and of the group
companies in accordance with the ethical requirements that are
applicable in Finland and are relevant to our audit, and we have
fulfilled our other ethical responsibilities in accordance with these
requirements.
In our best knowledge and understanding, the non-audit services
that we have provided to the parent company and group companies
are in compliance with laws and regulations applicable in Finland
regarding these services, and we have not provided any prohibited
non-audit services referred to in Article 5(1) of regulation (EU)
537/2014. The non-audit services that we have provided have been
disclosed in note 6 to the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the financial
statements of the current period. These matters were addressed in
the context of our audit of the financial statements as a whole, and
in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
We have fulfilled the responsibilities described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section
of our report, including in relation to these matters. Accordingly,
our audit included the performance of procedures designed to
respond to our assessment of the risks of material misstatement
of the financial statements. The results of our audit procedures,
including the procedures performed to address the matters below,
provide the basis for our audit opinion on the accompanying financial
statements.
We have also addressed the risk of management override of
internal controls. This includes consideration of whether there was
evidence of management bias that represented a risk of material
misstatement due to fraud.
(Translation of the Finnish original)
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Key Audit Matter How our audit addressed the Key Audit Matter
Revenue recognition
We refer to the accounting policies for the consolidated financial statements and the note 1.
The Group’s revenue is recognized when control of the good or service is transferred to the customer.
Revenue is a key financial performance measure which could create an incentive for revenues to be
recognized prematurely. Due to the variety of contractual terms used across the Group’s markets
management judgment is needed to account for the revenue.
Customer discounts and credits are considered when determining the revenue. Estimating discounts and
credits require also management judgment both at the time of revenue recognition as well as at the end of
each reporting period. Based on above, revenue recognition, was a key audit matter.
This matter was also a significant risk of material misstatement referred to in EU Regulation No 537/2014,
point (c) of Article 10(2).
Our audit procedures to address the risk of material misstatement in respect of revenue recognition, included,
among others:
• Assessment of the compliance of the Group’s accounting policies over revenue recognition, including those
relating to discounts and credits, against IFRS standards.
• Assessment of the revenue recognition process especially relating to timing of revenue recognition, and
calculation of discounts and credits.
• Data analytical procedures, for example, analyzing the conversion of revenue to cash received.
• Familiarizing ourselves with the contractual terms in sales agreements. Testing the revenue cut-off with
analytical procedures and with a sample test of details on a transaction level on either side of the balance
sheet date. Testing of revenue discounts and credits on a sample basis.
• Analyzing credit notes.
• Assessment of the Group’s disclosures in respect of revenues.
Valuation of goodwill
The accounting principles and disclosures about goodwill are included in note 14.
As of balance sheet date December 31, 2024, the value of goodwill amounted to 61.5 million euros
representing 2.5% of the total assets and 4.8% of the total equity.
The annual impairment testing of goodwill was based on the management’s estimate about the value-in-use
of the cash generating units. There are a number of assumptions used to determine the value-in-use of the
cash generating units, including revenue growth, margins and the discount rate applied on net cash-flows. The
estimated value-in-use may vary significantly when underlying assumptions are changed and the changes in
above-mentioned individual assumptions may result in an impairment of goodwill.
The valuation of goodwill was a key audit matter because the annual impairment testing included
management judgment with respect to the key assumptions used and because of the significance of goodwill
to the financial statements.
Our audit procedures in respect of valuation of goodwill included, among others:
• Evaluation of the determination of cash generating units and the goodwill allocated to those units.
• Involvement of our valuation specialists to assist us in evaluating the key assumptions used in impairment
testing. The procedures included also the comparison of the management’s assumptions to externally
derived data, in particular those relating to
• the forecasted revenue growth,
• the forecasted margin and
• the weighted average cost of capital used to discount the net cash-flows.
• Testing of the accuracy of the impairment calculations prepared by the management and comparison of the
sum of discounted cash flows against Nokian Tyres’ market capitalization.
• Evaluation of the adequacy of the disclosures of the impairment testing results.
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Responsibilities of the Board of Directors and the
Managing Director for the Financial Statements
The Board of Directors and the Managing Director are responsible
for the preparation of consolidated financial statements that give
a true and fair view in accordance with IFRS Accounting Standards
as adopted by the EU, and of financial statements that give a
true and fair view in accordance with the laws and regulations
governing the preparation of financial statements in Finland and
comply with statutory requirements. The Board of Directors and the
Managing Director are also responsible for such internal control as
they determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due
to fraud or error.
In preparing the financial statements, the Board of Directors
and the Managing Director are responsible for assessing the parent
company’s and the group’s ability to continue as going concern,
disclosing, as applicable, matters relating to going concern and using
the going concern basis of accounting. The financial statements are
prepared using the going concern basis of accounting unless there is
an intention to liquidate the parent company or the group or cease
operations, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial
Statements
Our objectives are to obtain reasonable assurance on whether the
financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit conducted in
accordance with good auditing practice will always detect a material
misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in aggregate, they
could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial statements.
As part of an audit in accordance with good auditing practice, we
exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the
financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant to the audit
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the parent company’s or the group’s
internal control.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures
made by management.
• Conclude on the appropriateness of the Board of Directors’
and the Managing Director’s use of the going concern basis of
accounting and based on the audit evidence obtained, whether
a material uncertainty exists related to events or conditions
that may cast significant doubt on the parent company’s or the
group’s ability to continue as a going concern. If we conclude that
a material uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the financial
statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future
events or conditions may cause the parent company or the group
to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the
financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and
events so that the financial statements give a true and fair view.
• Plan and perform the group audit to obtain sufficient appropriate
audit evidence regarding the financial information of the entities
or business units within the group as a basis for forming an
opinion on the group financial statements. We are responsible for
the direction, supervision and review of the audit work performed
for purposes of the group audit. We remain solely responsible for
our audit opinion.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements regarding
independence, and communicate with them all relationships and
other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
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Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors by the Annual General Meeting
on March 30th, 2021, and our appointment represents a total period
of uninterrupted engagement of four years.
Other information
The Board of Directors and the Managing Director are responsible
for the other information. The other information comprises the
report of the Board of Directors and the information included in the
Annual Report, but does not include the financial statements and our
auditor’s report thereon. We have obtained the report of the Board
of Directors prior to the date of this auditor’s report, and the Annual
Report is expected to be made available to us after that date.
Our opinion on the financial statements does not cover the other
information.
In connection with our audit of the financial statements, our
responsibility is to read the other information identified above and,
in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially
misstated. With respect to report of the Board of Directors, our
responsibility also includes considering whether the report of
the Board of Directors has been prepared in compliance with the
applicable provisions, excluding the sustainability report information
on which there are provisions in Chapter 7 of the Accounting Act and
in the sustainability reporting standards.
In our opinion, the information in the report of the Board
of Directors is consistent with the information in the financial
statements and the report of the Board of Directors has been
prepared in compliance with the applicable provisions. Our opinion
does not cover the sustainability report information on which
there are provisions in Chapter 7 of the Accounting Act and in the
sustainability reporting standards.
If, based on the work we have performed on the other
information that we obtained prior to the date of this auditor’s
report, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have
nothing to report in this regard.
Opinions based on assignment of the Audit Committee
We support that the financial statements should be adopted.
The proposal by the Board of Directors regarding the use of
the distributable funds shown in the financial statements is in
compliance with the Limited Liability Companies Act. We support
that the Members of the Board of Directors and the Managing
Directors of the parent company should be discharged from liability
for the financial period audited by us.
Helsinki, February 4, 2025
Ernst & Young Oy
Authorized Public Accountant Firm
Mikko Järventausta
Authorized Public Accountant
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Independent Auditor’s Report on the ESEF Consolidated
Financial Statements of Nokian Tyres plc
To the Board of Directors of
Nokian Tyres plc
We have performed a reasonable assurance engagement on
the financial statements tyres-2024-12-31-0-fi.zip of Nokian Tyres
plc (y-identifier: 0680006-8) that have been prepared in accordance
with the Commission’s regulatory technical standard for
the financial year ended 31.12.2024.
Responsibilities of the Board of Directors and
the Managing Director
The Board of Directors and the Managing Director are responsible
for the preparation of the company’s report of Board of Directors
and financial statements (the ESEF financial statements) in such
a way that they comply with the requirements of the Commission’s
regulatory technical standard. This responsibility includes:
• preparing the ESEF financial statements in XHTML format
in accordance with Article 3 of the Commission’s regulatory
technical standard
• tagging the primary financial statements, notes and company’s
identification data in the consolidated financial statements that
are included in the ESEF financial statements with iXBRL tags
in accordance with Article 4 of the Commission’s regulatory
technical standard and
• ensuring the consistency between the ESEF financial statements
and the audited financial statements
The Board of Directors and the Managing Director are also
responsible for such internal control as they determine is
necessary to enable the preparation of ESEF financial statements
in accordance the requirements of the Commission’s regulatory
technical standard.
Auditor’s Independence and Quality Management
We are independent of the company in accordance with the ethical
requirements that are applicable in Finland and are relevant to the
engagement we have performed, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
The firm applies International Standard on Quality Management
(ISQM) 1, which requires the firm to design, implement and operate
a system of quality management including policies or procedures
regarding compliance with ethical requirements, professional
standards and applicable legal and regulatory requirements
Auditor’s Responsibilities
Our responsibility is to, in accordance with Chapter 7, Section 8
of the Securities Markets Act, provide assurance on the financial
statements that have been prepared in accordance with the
Commission’s technical regulatory standard. We express an opinion
on whether the consolidated financial statements that are included
in the ESEF financial statements have been tagged, in all material
respects, in accordance with the requirements of Article 4 of
the Commission’s regulatory technical standard.
Our responsibility is to indicate in our opinion to what extent the
assurance has been provided. We conducted a reasonable assurance
engagement in accordance with International Standard on
Assurance Engagements (ISAE) 3000.
The engagement includes procedures to obtain evidence on:
• whether the primary financial statements in the consolidated
financial statements that are included in the ESEF financial
statements have been tagged, in all material respects, with iXBRL
tags in accordance with the requirements of Article 4 of the
Commission’s regulatory technical standard and
• whether the notes and company’s identification data in the
consolidated financial statements that are included in the ESEF
financial statements have been tagged, in all material respects,
with iXBRL tags in accordance with the requirements of Article 4
of the Commission’s regulatory technical standard and
• whether there is consistency between the ESEF financial
statements and the audited financial statements.
The nature, timing and extent of the selected procedures depend
on the auditor’s judgement. This includes an assessment of the risk
of material deviations due to fraud or error from the requirements of
the Commission’s technical regulatory standard.
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Opinion
Our opinion pursuant to Chapter 7, Section 8 of the Securities Markets
Act is that the primary financial statements, notes and company’s
identification data in the consolidated financial statements that are
included in the ESEF financial statements of Nokian Tyres plc tyres-
2024-12-31-0-fi.zip for the financial year ended 31.12.2024 have been
tagged, in all material respects, in accordance with the requirements
of the Commission’s regulatory technical standard.
Our opinion on the audit of the consolidated financial statements
of Nokian Tyres plc for the financial year ended 31.12.2024 has been
expressed in our auditor’s report 4.2.2025. With this report we do
not express an opinion on the audit of the consolidated financial
statements nor express another assurance conclusion.
Helsinki, February 28, 2025
Ernst & Young Oy
Authorized Public Accountant Firm
Mikko Järventausta
Authorized Public Accountant
(Translation of the Finnish original)
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We have performed a limited assurance engagement on the group
sustainability statement of Nokian Tyres plc (0680006-8) that is
referred to in Chapter 7 of the Accounting Act and that is included in
the report of the Board of Directors for the financial year 1.1.–31.12.2024.
Opinion
Based on the procedures we have performed and the evidence we
have obtained, nothing has come to our attention that causes us to
believe that the group sustainability statement does not comply, in
all material respects, with
1. the requirements laid down in Chapter 7 of the Accounting Act
and the sustainability reporting standards (ESRS);
2. the requirements laid down in Article 8 of the Regulation (EU)
2020/852 of the European Parliament and of the Council on
the establishment of a framework to facilitate sustainable
investment, and amending Regulation (EU) 2019/2088 (EU
Taxonomy).
Point 1 above also contains the process in which Nokian Tyres plc
has identified the information for reporting in accordance with the
sustainability reporting standards (double materiality assessment)
and the tagging of information as referred to in Chapter 7, Section
22 of the Accounting Act.
Our opinion does not cover the tagging of the group sustainability
statement with digital XBRL sustainability tags in accordance
with Chapter 7, Section 22, Subsection 1(2), of the Accounting
Act, because sustainability reporting companies have not had the
possibility to comply with that provision in the absence of the ESEF
regulation or other European Union legislation.
To the Annual General Meeting of Nokian Tyres plc
Basis for Opinion
We performed the assurance of the group sustainability statement
as a limited assurance engagement in compliance with good
assurance practice in Finland and with the International Standard
on
Assurance Engagements (ISAE) 3000 (Revised) Assurance
Engagements Other than Audits or Reviews of Historical Financial
Information.
Our responsibilities under this standard are further described in
the Responsibilities of the Group
Sustainability Auditor section of our
report
.
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Other Matter
We draw attention to the fact that the group sustainability statement
of Nokian Tyres plc that is referred to in Chapter 7 of the Accounting
Act has been prepared and assurance has been provided for it for the
first time for the financial year 1.1.–31.12.2024. Our opinion does not
cover the comparative information that has been presented in the
group sustainability statement. Our opinion is not modified in respect
of this matter.
Group sustainability auditor’s Independence and
Quality Management
We are independent of the parent company and of the group
companies in accordance with the ethical requirements that are
applicable in Finland and are relevant to our engagement, and we
have fulfilled our other ethical responsibilities in accordance with
these requirements.
The group sustainability auditor applies International Standard
on Quality Management ISQM 1, which requires the sustainability
audit firm to design, implement and operate a system of quality
management including policies or procedures regarding compliance
with ethical requirements, professional standards and applicable legal
and regulatory requirements.
Responsibilities of the Board of Directors and
the Managing Director
The Board of Directors and the Managing Director of Nokian Tyres plc
are responsible for:
• the group sustainability statement and for its preparation and
presentation in accordance with the provisions of Chapter 7
of the Accounting Act, including the process that has been
defined in the sustainability reporting standards and in which the
information for reporting in accordance with the sustainability
reporting standards has been identified as well as the tagging
of information as referred to in Chapter 7, Section 22 of the
Accounting Act and
• the compliance of the group sustainability statement with
the requirements laid down in Article 8 of the Regulation (EU)
2020/852 of the European Parliament and of the Council on
the establishment of a framework to facilitate sustainable
investment, and amending Regulation (EU) 2019/2088;
• such internal control as the Board of Directors and the Managing
Director determine is necessary to enable the preparation of
a group sustainability statement that is free from material
misstatement, whether due to fraud or error.
Assurance report on the sustainability statement (Translation of the Finnish original)
Report by the
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Inherent Limitations in the Preparation of
a Sustainability Statement
The preparation of the group sustainability statement requires
a materiality assessment from the company in order to identify
relevant disclosures. This significantly involves management
judgment and choices. Group sustainability reporting is
also characterized by estimates and assumptions, as well as
measurement and estimation uncertainty.
The determination of greenhouse gases is subject to inherent
uncertainty due to the incomplete scientific data used to determine
the emission factors and the numerical values needed to combine
emissions of different gases.
In addition, when reporting forward-looking information, the
company must make assumptions about possible future events and
disclose the company’s possible future actions in relation to these
events. The actual outcome may be different because predicted
events do not always occur as expected.
Responsibilities of the Group Sustainability Auditor
Our responsibility is to perform an assurance engagement to obtain
limited assurance about whether the group sustainability statement
is free from material misstatement, whether due to fraud or error,
and to issue a limited assurance report that includes our opinion.
Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be
expected to influence the decisions of users taken on the basis of
the group sustainability statement.
Compliance with the International Standard on Assurance
Engagements (ISAE) 3000 (Revised) requires that we exercise
professional judgment and maintain professional skepticism
throughout the engagement. We also:
• Identify and assess the risks of material misstatement of the
group sustainability statement, whether due to fraud or error,
and obtain an understanding of internal control relevant to
the engagement in order to design assurance procedures that
are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the parent
company’s or the group’s internal control.
• Design and perform assurance procedures responsive to those
risks to obtain evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of
internal control.
Description of the Procedures That Have Been
Performed
The procedures performed in a limited assurance engagement vary in
nature and timing from, and are less in extent than for, a reasonable
assurance engagement. The nature, timing and extent of assurance
procedures selected depend on professional judgment, including the
assessment of risks of material misstatement, whether due to fraud
or error. Consequently, the level of assurance obtained in a limited
assurance engagement is substantially lower than the assurance that
would have been obtained had a reasonable assurance engagement
been performed.
Our procedures included for ex. the following:
• We have interviewed the key persons responsible for collecting
and reporting the information included in the group sustainability
statement.
• Through interviews, we gained an understanding of the group’s
control environment related to the group sustainability reporting
process.
• We evaluated the implementation of the company’s double
materiality assessment process against the requirements of ESRS
standards and the compliance of the information provided for
the double materiality assessment with ESRS standards.
• We assessed whether the group sustainability statement in
material respect meets the requirements of ESRS standards for
material sustainability topics:
- We have tested the accuracy of the information presented
in the group sustainability statement by comparing the
information on a sample basis with supporting company
documentation.
- We have on a sample basis performed analytical assurance
procedures and related inquiries, recalculation and inspected
documentation, as well as tested data aggregation to assess
the accuracy of the group sustainability statement.
• We gained an understanding of the process by which a company
has defined taxonomy-eligible and taxonomy-aligned economic
activities and evaluate the regulatory compliance of the
information provided.
Helsinki, February 4, 2025
Ernst & Young Oy
Authorized Sustainability Audit Firm
Mikko Järventausta
Authorized Sustainability Auditor
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Information on Nokian Tyres’ share
Share data
Market Nasdaq Helsinki
Listing date June 1, 1995
Currency euro
ISIN FI0009005318
Symbol TYRES
Reuters symbol TYRES.HE
Bloomberg symbol TYRES:FH
Market capitalization segment OMXH Large Caps
Sector Consumer goods
Industry Automobiles and parts
Number of shares, December 31, 2024
Share capital and shares
The company has one class of shares, each share entitling the
shareholder to one vote and carrying equal rights to a dividend. On
December 31, 2024, the number of shares was 138,921,750.
Read more: company.nokiantyres.com/investors/share-and-
shareholders.
Number of shareholders on December 31, 2024
Number of shares
Number
of share-
holders
% of share-
holders
Total
number of
shares
% of share
capital
1–100 42,058 41.08 1,892,076 1.36
101–500 36,766 35.91 9,467,316 6.82
501–1,000 11,423 11.16 8,717,826 6.2
1,001–5,000 10,311 10.07 21,867,984 15.74
5,001–10,000 1,132 1.11 8,127,136 5.85
10,001–50,000 623 0.61 11,882,330 8.55
50,001–100,000 39 0.04 2,735,712 1.97
100,001–500,000 20 0.02 4,939,253 3.56
500,001– 17 0.02 69,292,117 49.88
Total 102,389 100.00 138,921,750 100.00
Shareholder structure on December 31, 2024
Number of
shares
% of share
capital
Nominee registered and non-Finnish
holders 40,990,196 29.50
Households 54,066,277 38.92
General Government 25,121,864 18.08
Financial and insurance corporations 6,384,140 4.60
Non-profit institutions 2,870,325 2.07
Corporations 9,488,948 6.83
Total 138,921,750 100.00
Read more: company.nokiantyres.com/investors/share-and-
shareholders/major-shareholders.
Read more: company.nokiantyres.com/investors/share-and-
shareholders/share-tools/share-performance.
2020 2021 2022 2023 2024
20
15
10
5
0
Share trading volumes on NASDAQ Helsinki
Jan 1, 2020–Dec 31, 2024, pcs million
40
30
20
10
0
2020 2021 2022 2023 2024
Share price development on NASDAQ Helsinki
Jan 1, 2020–Dec 31, 2024, EUR
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Nokian Tyres
Group structure
Nokian Tyres plc
Nokian Däck AB Vianor Holding Oy
Nokian Dekk AS Vianor AB
Nokian Tyres AG Vianor AS
Nokian Tyres GmbH Vianor Oy
Nokian Tyres Canada Inc. Nordic Wheels AB
Nokian Tyres U.S. Holdings Inc
Nokian Tyres Inc.
Nokian Tyres U.S. Operations LLC
Nokian Renkaat Holding Oy
NT Tyre Machinery Oy
Nokian Tyres Trading (Shanghai) Co Ltd
Nokian Tyres Europe Operations S.R.L
Nokian Tyres SAS
Nokian Tyres s.r.o.
Nokian Raskaat Renkaat Oy
Levypyörä Oy
TOV Nokian Shina
Nokian Tyres Spain S.L.U
Nokian Tyres Spain Operations S.L.U
Nokian Tyres SP Z O.O.
Nokian Portti Oy
Kiinteistö Oy Nokian Nosturikatu 18
Kiinteistö Oy Nokian Rengaskatu 4
Nokianvirran Energia Oy
32.3%
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REMUNERATION
REPORT
WE DON’T SIMPLY
MAKE TIRES, WE
MAKE SAFETY
MAKING THE WORLD SAFER,
OVER AND OVER AGAIN
Romania factory production team members
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Remuneration Report 2024
People and Sustainability Committee
– Chair’s greeting
In 2024, the focus at Nokian Tyres was on taking concrete steps
toward the EUR two billion net sales target. During the year, the
new factory in Romania reached the planned milestones on time
and within budget. In North America, the investment phase at
the US factory was completed. The foundation for Nokian Tyres’
growth and improving profitability has now been established. These
achievements have required a tremendous amount of teamwork
and resilience from the entire Nokian Tyres team.
From a remuneration point of view, the year 2024 was demanding as
the tire market continued to be weak and consumers were cautious
about spending. The global economic uncertainties and challenges in
the operating environment were reflected in Nokian Tyres’ financial
results. This impacted on the achievement of both short-term and
long-term incentive goals, resulting in low outcomes of both rewards
in accordance to the performance-based remuneration model.
The Annual General Meeting held in spring 2024 adopted the renewed
Nokian Tyres Remuneration Policy. The Policy aims to support
the company in achieving its short-term and long-term strategic
targets, strengthen sustainable development, and foster employee
commitment to Nokian Tyres.
The Remuneration Policy was followed throughout 2024 with one
exception. This exception was related to the long-term programs
that were implemented in 2023 and that continued in 2024 with a
two-year performance period and a one-year vesting period instead
of a three-year performance period. The long-term incentive plan
targets were included a 10 percent weighting for sustainability, which
was measured by the reduction of direct CO
2
emissions.
During 2024, the People and Sustainability Committee focused
on personnel matters to monitor the progress of strategy via set
performance targets. In 2025, the committee will continue to ensure
that the remuneration decisions are aligned with and support the
company’s progress toward a growth phase and EUR two billion net
sales in the long term.
Nokian Tyres’ President and CEO Jukka Moisio retired from his
position at the end of 2024. The new President and CEO Paolo
Pompei joined the company at the beginning of 2025. On behalf of
the People and Sustainability Committee, I wish Jukka all the best in
his future endeavors and welcome Paolo to continue leading Nokian
Tyres’ success.
ELINA BJÖRKLUND
Chair of the People and Sustainability Committee
of Nokian Tyres Board of Directors
NOKIAN TYRES’ REMUNERATION POLICY
AND INCENTIVE SYSTEM SUPPORT THE
COMPANY’S STRATEGY AND BUILDING
GROWTH AT NOKIAN TYRES.
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Introduction
This remuneration report (the “Remuneration Report”) describes
the implementation of the remuneration policy (the “Remuneration
Policy”) of Nokian Tyres plc (the “company” or “Nokian Tyres”) for
the financial year 2024. The Remuneration Policy was presented to
and adopted by an advisory resolution in the 2024 Annual General
Meeting and shall be applied until the 2028 Annual General Meeting
unless a revised policy is presented to the General Meeting before
this.
The Remuneration Policy describes:
• the remuneration of the Board of Directors and
the President and CEO
• the considerations of determining the policy
• practical implementation of the policy.
The Remuneration Policy can be found at company.nokiantyres.com/
investors/corporate-governance/salaries-and-remunerations.
This Remuneration Report provides more detailed information on
the development of Nokian Tyres’ remuneration, as well as on certain
strategic indicators and the implementation of the Remuneration
Policy in the financial year 2024.
The Remuneration Report is prepared in accordance with the
Securities Market Association’s Corporate Governance Code 2025
and the applicable legislation. The 2024 Annual General Meeting
resolved to adopt the company’s Remuneration Report 2023 through
an advisory resolution, supported by approximately 73 percent of the
votes cast at the 2024 Annual General Meeting.
Development of Nokian Tyres performance
and remuneration
Nokian Tyres’ net sales for the financial year 2024 grew by 9.9%
and were EUR 1,289.8 million, and the segments operating profit
was EUR 71.4. million (2023: 65.1 million). Remuneration follows the
realization of the company’s financial results and remained at a low
level in 2024, similar to the previous year. The focus of remuner-
ation in 2024 was on committing key personnel to achieve the set
targets and ensure the strategy’s implementation, including the
timely completion of building the Romanian factory, and to achieve
common goals as one organization. These achievements during 2024
ensure continuity in the coming years to increase the company’s
growth and profitability.
The table shows as an index comparison the development of the
remuneration of the Board of Directors, the CEO, and employees
during the previous five financial years.
Remuneration 2020–2024
Remuneration index 2024 2023 2022 2021 2020
Total Board remuneration –
Average annual fee paid to
Board members
1
113% 106% 109% 95% 100%
President and CEO salaries
and financial benefits 43% 75% 79% 61% 100%
Average salary cost per
employee
2
144% 134% 146% 119% 100%
1
Total Board remuneration – Average annual fee paid to Board
members calculated by dividing total amount of fees paid to Board
members each financial year, by the number of the Board members
(2020: 8 Board members, 2021–2024: 9 Board members) and excluding
fees paid to Board members leaving during following term. Further
details in section
“Remuneration and financial development between
2020–2024”.
2
Average cost per employee is calculated by dividing the total amount
of salaries, incentives, and other related employee costs for the
corresponding financial year by the average number of employees
during each financial year.
The goal of the Remuneration Policy is to support Nokian Tyres
in achieving its short- and long-term strategic goals, strengthen
sustainable development, and foster personnel commitment to
Nokian Tyres.
Short-term incentive program is one element in the total rewards
package. No changes were made to the Nokian Tyres’ short-term
incentive plan in 2024.
Long-term incentives are a part of Nokian Tyres’ key employee
incentive and retention program designed to align the goals of
the company’s key personnel with the company’s shareholders to
increase the value of the company in the long term, to commit key
personnel to the company and its strategic goals, and to offer a
competitive reward for key personnel. Nokian Tyres has two annually
commencing long-term share-based incentive plans decided by the
Board of Directors: The Performance Share Plan and the Restricted
Share Plan. In February 2024, the Board of Directors decided to
continue both incentive plans with new performance periods starting
2024 for the following three-year period.
The Performance Share Plan is the company’s most important
long-term incentive scheme, the objectives of which are measured
by EBITDA, increase in passenger car tire production volume and
reduction in direct CO
2
emissions. The performance period is
2024–2025, with one year retention period when the possible payout
will be in the spring of 2027.
Nokian Tyres Restricted Share Plan serves as a complementary
long-term incentive tool, used selectively for retention of Nokian
Tyres key employees. The Restricted Share Plan consists of a
three-year retention period, after which the share awards granted
within the plan will be paid to the participants. A precondition for the
payment of the share reward based on the Restricted Share Plan is
that the employment relationship of a participant with Nokian Tyres
continues until the payment date of the award. In addition to this
precondition, a financial performance criterion is applied to Nokian
Tyres Management Team, including the President and CEO, with the
aim of aligning the interests of the President and CEO and share-
holders related to the company’s financial development.
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In February 2023, the Board of Directors decided to change the
financial performance criterion from ROCE (return on capital
employed) to segments ROCE. The segments ROCE is applicable
in 2021–2023, 2022–2024, 2023–2025 plans, as well in the 2024
Restricted Share Plan with the restriction period of 2024–2026.
The three-year restriction period of the Restricted Share Plan
2021–2023 ended at the end of the financial year 2023. In the share-
based incentive plan, the financial threshold set for the President and
CEO and the members of the Management Team for the segments
ROCE was reached. The rewards to be paid corresponded to a total
of 4,600 gross Nokian Tyres plc shares, of which no gross shares were
directed to the President and CEO. The share reward was paid in March
2024.
During the financial year 2024, Nokian Tyres temporarily deviated
from the approved Remuneration Policy by applying a two-year
performance period and a one-year retention period in the Perfor-
mance Share Plan 2023–2024 and 2024–2025. Apart from this
deviation, the remuneration of the President and CEO followed the
Remuneration Policy in 2024.
2020 2021 2022 2023 2024
Net sales
Segments operating profit
Segments operating profit, %
Net sales and segments operating profit
EUR million %
2,000
1,500
1,000
500
0
40
30
20
10
0
Figures for 2021 and earlier years have not been
restated and include Russia.
1,289.8
1,313.8
1,714.1
1,350.5
71.4
190.2
324.8
17.8
65.1
1,173.6
2020 2021 2022 2023 2024
Segments earnings per share
Dividend per share
*The Board’s proposal to the Annual General Meeting.
Figures for 2021 and earlier years have not been
restated and include Russia.
Segments earnings per share and dividend per share, EUR
2.0
1.5
1.0
0.5
0.0
-0.5
-1.0
-1.5
-2.0
-2.5
1.04
1.84
-0.86
-2.16
0.23
0.25*
Net sales and EBITDA*, EUR million
Net sales
EBITDA
*Depreciations and Amortizations (DA) in EBITDA
includes impairments from 2020 onward.
2,000
1,500
1,000
500
0
2020 2021 2022 2023 2024
1,313.8
1,714.1
1,350.5
1,173.6
275.9
425.6
170.2
147.0
Figures for 2021 and earlier years have not been
restated and include Russia.
1,289.8
126.0
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Board member Position on the Board
Annual fixed
fee (EUR)
1
Board
meeting
fees (EUR)
Committee
meeting
fees (EUR)
Total fees
(EUR)
Shares
acquired with
fixed annual
fee (number
of shares)
Jukka Hienonen Chair of the Board /
Member of the People and Sustainability Committee
115,000 9,100 3,500 127,600 5,700
Pekka Vauramo Deputy Chair /
Member of the Investment Committee
76,000 9,100 3,500 88,600 3,767
Elina Björklund Board member /
Chair of the People and Sustainability Committee
(as of Apr 30, 2024)
76,000 7,000 2,800 85,800 3,767
Susanne Hahn Board member /
Member of People and Sustainability Committee
53,500 12,600 4,200 70,300 2,651
Markus Korsten Board member /
Member of the Investment Committee
53,500 13,300 2,800 69,600 2,651
Veronica
Lindholm
Board member /
Chair of the People and Sustainability Committee
(until Apr 30, 2024)
– 2,800 700 3,500 –
Elisa Markkula Board member /
Member of the Audit Committee (as of Apr 30, 2024)
53,500 7,000 2,100 62,600 2,651
Christopher
Ostrander
Board member /
Chair of the Investment Committee
76,000 15,400 4,200 95,600 3,767
Jouko Pölönen Board member /
Chair of the Audit Committee
76,000 9,100 3,500 88,600 3,767
George Rietbergen Board member (until Apr 30, 2024) – 3,500 – 3,500 –
Reima Rytsölä Board member /
Member of the Audit Committee
53,500 9,100 3,500 66,100 2,651
1
60 percent of the annual fixed fee was paid in cash and 40 percent in company shares. Management transaction stock exchange releases regarding the share
acquisitions published on April 30, 2024. The company paid asset transfer taxes arising from the acquisition of shares.
Remuneration of the Board of Directors 2024
Nokian Tyres 2024 Annual General Meeting decided the following
annual fees to be paid to the Board of Directors serving during the
financial year 2024:
Chair of the Board: A fee of 115,000 euros per year.
Deputy Chair and Chairs of the Audit Committee, Investment
Committee and People and Sustainability Committee: A fee of
76,000 euros per year.
Other members of the Board: A fee of 53,500 euros per year.
For each Board and Board Committee meeting, the fee is 700 euros.
For Board members resident in Europe, the fee for each meeting
outside a member’s home country within Europe is doubled, and
for each meeting outside Europe, the fee is tripled. For Board
members resident outside Europe, the fee for each meeting outside
a member’s home country is tripled. If a member participates in a
meeting via telephone or video connection, the remuneration is
700 euros. Travel expenses are compensated in accordance with the
company’s travel policy.
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President and CEO Jukka Moisio’s remuneration
The remuneration of the President and CEO is decided by the Board of
Directors. The People and Sustainability Committee prepares proposals
for the salaries, benefits, and short-term and long-term incentives of
the President and CEO for the decision by the Board of Directors. The
President and CEO Jukka Moisio worked in the company until the end
of 2024.
Short-term incentive plans
The President and CEO was entitled to short-term incentives as
described in the Remuneration Policy. The target opportunity of
incentive plan is 50 percent of the annual base salary, with the
maximum opportunity of 100 percent of the annual base salary. The
performance period is typically one year unless decided otherwise by
the Board of Directors. The possible reward is paid out in the first half
of the year following the performance period.
In accordance with the decision of the Board of Directors, the perfor-
mance criteria for the President and CEO Jukka Moisio’s short-term
incentives for the performance period of the financial year 2024 were
Nokian Tyres’ segments operating profit with a weight of 60 percent
and Nokian Tyres’ net sales with a weight of 40 percent, in total 100
percent target weight.
The short-term incentive outcome based on target setting on scale
0–100–200 percent 2024 was as follows:
• 60 percent weight; Nokian Tyres’ segments operating profit. Target
level achievement was set to EUR 116 million. The outcome was 0
percent of target.
• 40 percent weight; Nokian Tyres’ net sales. Target level
achievement was set to EUR 1,473 million. The outcome was 0
percent of target.
Total short-term incentive outcome 2024 was 0 percent.
Payable outcome resulted with EUR 0.00.
LTI criteria 2024–2025 weights, %
EBITDA 50%
Increase in passenger car tire
production 40%
Reduction in direct CO
2
emissions 10%
Long-term incentive plans
The President and CEO’s long-term incentives (LTI) consist of share
incentive plans. The value of the performance-based LTI payout is
capped at 250 percent of the annual base salary, and the annual
target amount is 125 percent of the annual base salary.
Performance Share Plan 2024–2025
The President and CEO Jukka Moisio was granted 122,280 perfor-
mance-based shares from the performance period 2024–2025
of Nokian Tyres Performance Share Plan 2023–2027. The possible
reward will be based on separate Board of Directors approval and pro
rate calculation, and it will be paid during the first half of the financial
year 2027 after a one-year retention period in case the targets set
by the Board of Directors for the performance period 2024–2025 will
be met. The targets set for the performance period 2024–2025 of
the Nokian Tyres Performance Share Plan 2023–2027 are divided as
follows:
The potential share rewards will be paid partly in shares of Nokian
Tyres and partly in cash. The cash portion of the reward is intended
to cover the taxes arising from the paid reward.
The President and CEO Jukka Moisio was not granted restricted
shares during the financial year 2024.
Performance Share Plan 2022–2024
The performance measure for the Performance Share Plan
2022–2024 was based on segments earnings per share (EPS) and
segments return on capital employed (ROCE), both with an equal
weight of 50 percent. Both targets did not meet the minimum level
and therefore no payments will be conducted to the President and
CEO Jukka Moisio.
Performance Share Plan 2023–2024 payout in spring 2026
The two-year performance period of the Performance Share Plan
2023–2024 ended after the financial year 2024. The rewards from
the performance period 2023–2024 are based on cumulative EBITDA
weight of 50 percent, increase in passenger car tire production
volume weight of 40 percent and reduction in direct CO
2
emissions
weight of 10 percent. The reduction in direct CO
2
emissions with 10
percent weight was achieved at maximum level and the other targets
were not met. The combined achievement of the set targets was
thereby 20 percent. The reward calculation and share grant for Jukka
Moisio during the spring 2026.
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Active Long-term incentive plans and shares granted to the President and CEO Jukka Moisio
Long-term incentive plan and performance period Gross shares granted
Maximum gross
share award
1
Performance criteria Result
2
Pay-out of
possible reward
Performance share plan 2022–2024 27,680 55,360 Segments ROCE (50% weight)
Segments EPS (50% weight)
0%
0%
H1/2025
Performance share plan 2023–2024 90,882 181,764 EBITDA (50% weight), increase in passenger car tire production volume
(40% weight) and reduction in direct CO
2
emissions (10% weight).
Trigger for payout: the Romanian factory is up and running by the end of 2024.
0%, 0%
20%
H1/2026
Achievement of set targets 100% 200%
1
The potential share rewards will be paid partly in shares of Nokian Tyres plc and partly in cash. Gross shares are the amount of shares earned, based on performance against set targets and used to calculate the cash proportion.
Actual shares delivered = net shares. Cash portion of the reward is intended to cover the taxes arising from the paid reward.
2
Target achievement is 100 percent, maximum 200 percent.
Remuneration of the President and CEO 2024, EUR
President and CEO
Fixed annual
salary (incl. holiday
compensation) Monthly base salary
Paid salary during
financial year 2024 (incl.
holiday compensation and
mobile phone benefit)
Paid performance-
based bonuses
(based on year 2023)
Due performance-
based bonuses
(based on year 2024)
1
Total value of
awarded share-
based bonus
Supplementary
pension
contribution
Severance
payment
Total fees paid
during financial
year 2024
Jukka Moisio 817,614 64,890 817,854 0 0 0 – – 817,854
1
Due performance-based bonuses (based on year 2024) will be paid during the financial year 2025.
Short-term incentive opportunities as of annual base salary
Performance share plan long-term incentives
as of annual base salary
1
Target Max Target Max
50% 100% 125% 250%
1
Nokian Tyres may in addition offer restricted share plans for the President and CEO in situations like new hire and retention, at the Board’s discretion.
Based on the Board of Directors’ decision, the President and CEO Jukka Moisio’s salary was not increased during the financial year 2024, and the
monthly base salary was thereby 64,890 euros.
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The President and CEO Jukka Moisio had a company-paid mobile
phone benefit, with a value of 20 euros per month or 240 euros
per annum. Fixed annual salary including holiday compensation is
calculated by multiplying the monthly base salary 64,890 euros by
12.6 percent.
Remuneration of the President and CEO:
2024 actual paid salary and variable elements, %
Base salary* 100%
Short-term incentive 0%
Long-term incentive 0%
Pension and benefits excluded.
*Holiday compensation included.
Pension and information regarding
the termination of the employment of
the President and CEO Jukka Moisio
The pension and information regarding the termination of the
employment of the President and CEO Jukka Moisio was defined
as follows:
The pension accumulation and retirement age of the President and
CEO are determined by the practices and terms of the applicable law
in the home country of the President and CEO. An additional defined
contribution pension plan that corresponds to the relevant local
market can be arranged by the company. The President and CEO
Jukka Moisio does not have a company-paid supplementary pension
arrangement. The retirement age and the pension are determined in
accordance with the Employees Pensions Act.
The President and CEO’s period of notice is 6 months. If the
agreement is terminated by the company, the President and CEO is
entitled to compensation corresponding to 12 months’ salary and
other benefits in addition to the notice period’s salary.
Malus and clawback
Based on the terms and conditions of the incentive plans, if the
President and CEO receives a reward based on the remuneration
scheme that subsequently turns out to be incorrectly paid due to
intent or negligence by the President and CEO, Nokian Tyres has the
right to retroactively restate the amount and reclaim the excess
part of the rewards paid from the short- and long-term incentives
pursuant to rules regarding unjust enrichment.
The short- and long-term remuneration schemes are discretionary
in nature and do not form part of the terms and conditions of
the service contract of the President and CEO, and the Board of
Directors shall decide on the implementation of the schemes and
their terms and conditions at any time.
Nokian Tyres did not exercise any malus or clawback rights during the
financial year 2024.
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Board of Directors
Sustainability
Statement
Financial
Statements
Corporate Governance
Statement
Year 2024 Remuneration
Report
Remuneration and financial development 2020–2024
2024 2023 2022 2021 2020
Board remuneration, total pay EUR
Jukka Hienonen 127,600 121,900 126,100 112,700 105,800
Pekka Vauramo 88,600 86,900 90,400 82,000 63,100
Elina Björklund (as of Apr 30, 2024) 85 800
Susanne Hahn 70,300 67,200 61,600 – –
Markus Korsten 69,600 62,300 – – –
Veronica Lindholm (until Apr 30, 2024) 3,500 86,900 91,100 60,200 65,500
Elisa Markkula (as of Apr 30, 2024) 62,600 – – – –
Christopher Ostrander 95,600 72,800 68,600 57,700 –
Jouko Pölönen 88,600 86,900 90,400 59,100 –
George Rietbergen (until Apr 30, 2024) 3,500 64,400 67,200 57,500 60,100
Reima Rytsölä 66,100 60,900 – – –
Heikki Allonen (until Apr 26, 2023) – 4,200 67,200 60,900 63,100
Inka Mero (until Apr 26, 2023) – 4,200 67,900 60,900 63,100
Raimo Lind – – 5,600 83,400 85,600
Kari Jordan – – – 1,800 87,400
Petteri Walldén – – – – 6,600
Total (excl. fees paid to leaving members)
1
754,800 710,200 730,500 634,400 593,700
Board size, number of members 9 9 9 9 8
Average total pay per member
1
83,867 78,911 81,167 70,489 74,213
Index 113.0% 106.3% 109.4% 95.0% 100.0%
President and CEO, total pay EUR
Jukka Moisio May 27, 2020–Dec 31, 2024 817,854 1,421,075 1,502,304 1,157,960 429,611
Hille Korhonen Jun 1, 2017–May 26, 2020 – – – – 1,472,192
Total 817,854 1,421,075 1,502,304 1,157,960 1,901,803
Index 43.0% 74.7% 79.0% 60.9% 100%
2024 2023 2022* 2021 2020
Employee remuneration, average EUR
Salaries, incentives, and other related costs,
EUR million 256.3 232.2 237.5 270.7 224.7
Group employees on average during
financial year 3,850 3,754 3,517 4,941 4,859
Average per year, k EUR 66.57 61.83 67. 53 54.79 46.24
Index 144.0% 133.7% 146.0% 118.5% 100.0%
Financial development 2020–2024
Operating profit, EUR million 1.8 32.1 56.7 268.2 120.0
Segments operating profit, EUR million 71.4 65.1 17.8 324.8 190.2
Index 1.5% 26.8% 47.3% 223.5% 100.0%
EPS, EUR -0.17 -2.36 -1.27 1.49 0.62
Segments EPS, EUR 0.23 -2.16 -0.86 1.84 1.04
Index -24.7% -360.8% -204.8% 240.3% 100.0%
ROCE, % 0.5% 2.2% 3.1% 13.7% 6.0%
Segments ROCE, % 3.9% 4.0% 1.0% 15.8% 9.3%
Index 8.3% 36.7% 51.7% 228.3% 100.0%
1
Total Board remuneration – Average annual fee paid to Board members calculated by dividing total amount of
fees paid to Board members each financial year, by the number of the Board members (2020: 8 Board members,
2021–2024: 9 Board members) and excluding fees paid to Board members leaving during following term.
*Year 2022 excluding discontinued operations.
235
Report by the
Board of Directors
Sustainability
Statement
Financial
Statements
Corporate Governance
Statement
Year 2024 Remuneration
Report
Investor information and investor relations
Annual General Meeting 2025
The Annual General Meeting of Nokian Tyres plc is tentatively
scheduled for Wednesday, May 7, 2025. Invitation to the meeting will
be sent later.
More information: company.nokiantyres.com/investors/corpo-
rate-governance/annual-general-meeting/agm-2025.
Dividend payment
The Board of Directors proposes to the Annual General Meeting that
a dividend of EUR 0.25 per share for the financial year 2024 shall
be paid to shareholders who are registered in the company’s share-
holder register maintained by Euroclear Finland Oy on the dividend
record date of May 9, 2025. The payment date proposed by the Board
of Directors is May 20, 2025.
Financial information
The main objective of Nokian Tyres’ Investor Relations is to support
the fair valuation of Nokian Tyres’ share by consistently and promptly
providing all essential information on the company equally to all
market participants. We serve investors and analysts both in Finland
and internationally.
On our investor website, we publish up-to-date financial information
for everyone interested in Nokian Tyres as an investment. In addition
to financial reports, presentations, and stock exchange releases, the
pages contain information about Nokian Tyres’ strategy, share, and
major Finnish shareholders.
Nokian Tyres’ stock exchange releases can be subscribed at
company.nokiantyres.com/news-and-media/order-releases.
Financial reports in 2025
Nokian Tyres will publish its financial reports in 2025 as follows:
• Interim Report January–March on May 6, 2025
• Half-year Financial Report January–June on July 18, 2025
• Interim Report January–September on October 28, 2025
The financial reports are published in Finnish and English and are
available at company.nokiantyres.com/investors.
Silent period
Nokian Tyres observes a silent period before issuing financial state-
ments, interim and half-year reports.
• Start of the silent period: January 1, April 1, July 1, and October 1.
• End of the silent period: The results of the respective quarter are
made public.
During the silent period, the company’s top management and
Investor Relations do not meet representatives of capital markets
or financial media, nor comment on issues related to the company’s
financial situation or general outlook. If an event occurring during
the silent period requires immediate disclosure, Nokian Tyres will
disclose the information without delay in compliance with disclosure
rules and may also comment on the event concerned.
Flagging notifications
Under the provisions of the Securities Markets Act, changes in
holdings must be disclosed when the holding reaches, exceeds or
falls below 5%, 10%, 15%, 20%, 25%, 30%, 50%, 2/3 and 90% of the
voting rights or the numbers of shares of the company.
Notifications of changes in holdings or voting rights must be made
without undue delay.
Shareholders are advised to send the flagging notifications to
flaggings@nokiantyres.com
IR contact information
Regarding inquiries and meeting requests, you can send an email to
ir@nokiantyres.com
Annukka Angeria, Senior Manager, Investor Relations and Strategic
Project Comunications
Tel. +358 10 401 7581
Address:
Nokian Tyres plc
P.O. Box 20
(Visiting address: Pirkkalaistie 7)
FI–37101 Nokia
company.nokiantyres.com