Nokia: Balancing Tech Growth, Social Action & Sustainability

As the telecommunications industry continues to expand, sustainability has become a critical focus for companies aiming to balance growth with environmental responsibility. 

Leading the charge is Nokia, which has set ambitious targets including achieving net zero emissions by 2040.

“Digital technologies underpin critical aspects of our lives, but we have a responsibility to ensure the cost of these benefits is not paid for by future generations,” Subho Mukherjee, Vice President, Global Head of Sustainability at Nokia explains.

“Every decision should also be viewed through the lens of sustainability.”

The company's Planet and Sustainability Handbook outlines a comprehensive strategy that not only addresses its own environmental footprint but also leverages technology to create positive societal impact.

Nokia’s sustainability strategy

Nokia's sustainability strategy is multifaceted, encompassing ambitious targets and tangible achievements underpinned by its 2040 net zero target. 

In the short term, Nokia has already made significant strides, reducing its total greenhouse gas emissions across Scope 1, 2, and 3 by 11% from 2022 – despite increasing demand for digital services and the corresponding energy requirements.

A key focus of Nokia's strategy is the sustainable development of network infrastructure. The company has achieved a 50% reduction in power consumption for its AirScale 5G massive MIMO Base Transceiver Stations compared to 2019 levels.

This improvement is crucial as 5G networks continue to expand globally, potentially leading to increased energy consumption. 

Subho emphasises the importance of this achievement: "Nokia's most advanced chipsets can demonstrate as much as a 75% reduction in power consumption from previous generations as well as a more than 3x increase in performance, helping operators as they look to break the link between data growth and energy consumption"

How to sustainably build the digital society

Building a sustainable digital society requires a delicate balance between technological advancement and environmental stewardship. 

Nokia's approach to this challenge is exemplified by its Private Wireless Sustainability Calculator, which provides data-driven insights to help industries reduce their environmental footprint. 

This tool is particularly relevant as a Nokia/Global Data survey revealed that 79% of organisations experienced a significant improvement in their sustainability efforts after deploying private wireless networks, reporting a 10% or more reduction in their emissions.

The benefits of AI in addressing climate change 

The potential of digital technologies to create positive environmental impact is significant.

Subho illustrates this with a practical example: "By knowing how traffic moves around a city, and where congestion builds, we can reduce air pollution by altering traffic signals or changing bus routes, but getting this insight is incredibly difficult. 

“Internet-enabled devices can provide this information, helping us create a more sustainable future for all. 

“The crossover between data-driven insight and human creativity can lead to significant benefits we can’t deliver today.”

This demonstrates how the 'handprint' of technology – its positive impact – can outweigh its 'footprint', or negative environmental effects.

AI is emerging as a powerful tool in addressing climate change, particularly in the telecommunications sector where companies like Nokia are harnessing AI to optimise network operations and energy consumption. 

Subho explains: "One of the biggest benefits of artificial intelligence is the ability to automate. When we need to connect to the network it has to be there, but if it is not being used it is simply consuming energy - this is particularly relevant in more rural parts of the world. 

“Why not power it down until it is needed?"

This approach could potentially reduce energy consumption by 15%, showcasing how AI can contribute to sustainability efforts in tangible ways.

Decoupling data and energy growth

The increasing use of AI and other digital technologies presents its own sustainability challenges – the growing demand for data centres and computing power threatens to increase energy consumption significantly. 

Estimates suggest that global electricity demand from data centres could double by 2026, with EU data centre energy consumption expected to rise 28% to 98.5 TWh by 2030.

Nokia is addressing this challenge through continuous innovation in network technology, including transitioning from legacy systems to more efficient technologies.

For instance, fiber networks can transmit 12 times as much data as copper networks for the same power consumption.

In mobile networks, 5G is more than 10 times more energy efficient than 4G.

These advancements are crucial in managing the exponential growth in data traffic without a corresponding increase in energy use.

The company is also championing the concept of a circular economy within the telecom sector – reducing waste while also conserving resources and energy that would otherwise be used in manufacturing new equipment. 

Nokia's approach involves taking back or acquiring excess and obsolete products from customers and markets, then refurbishing, repairing, or remanufacturing these units for inclusion in the product supply chain.

The S of ESG

Nokia's sustainability efforts extend beyond environmental concerns to address social aspects of sustainability as well. 

The company has reached more than 691,000 direct beneficiaries through its Corporate Social Responsibility initiatives over the past two years, including 130,832 added in 2023 through social digitalisation projects.

These projects focus on building digital skills, connecting underserved communities, and improving inclusion, equity and diversity.

One notable initiative is the Smartpur digital village ecosystem programme in India, which empowers local entrepreneurs by providing facilities to make digital services accessible in rural villages. In 2023 alone, this programme reached an estimated 119,795 direct beneficiaries.

The future of sustainability at Nokia

As the telecom industry continues to develop, grow and innovate, sustainability will remain a critical focus. 

Nokia's approach demonstrates that it's possible to drive technological innovation while also prioritising environmental and social responsibility. 

Subho encapsulates Nokia's vision for the future: "Sustainability is now part of every conversation. The awareness of your technology footprint and handprint stems from data-driven insight, but responsible decision-making needs to be at the core of every conversation. 

“At Nokia, we believe technology has the power to deliver a digital society, where human endeavour is only improved by intelligent design and intervention – our business is to ensure our customers are more aware, informed and successful"

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