At Nokia, sustainability is embedded in everything we do across our operations, products and services. This, combined with the positive effects of mobile technology for consumers, enables us to make a real difference to the environment and to driving sustainable development.
Nokia’s China operations epitomise Nokia’s philosophy and commitment to the environment, both through our Green building headquarters and our manufacturing facility, both housed within the greater Xingwang Industrial Park. This Industrial Park in Yizhuang, Beijing houses Nokia and its key suppliers such as Sanyo Energy, Ibiden Electronics, Inpac and Foxcomm Precision Components together as tenants to produce mobile phones under stringent environmental standards for manufacturing, distribution, marketing, sales, and product end-of-life. International logistics company, DHL, manages all the park logistics.
A recent research study by analyst firms THINKTANK Media, SOL and SDR, labelled the Xingwang Industrial Park as “one of the largest and most complete industry value chains in the world.” The study found that the Xingwang Industrial Park achieves on an annual basis:
A decrease in energy consumption equivalent to nearly 45,000 tons of standard coal.
A reduction in Carbon dioxide emissions of nearly 88,000 tons.
Water conservation of half a million tons.
A reduction of packaging equivalent to the volume of sustainable logging of more than 1,500 hectares of Chinese red pine forests.
Direct economic benefit of the energy conservation alone of almost 100 Million US Dollars
The Nokia headquarters for the Greater China region, as well as one of our global R&D bases, are housed within the Nokia Green Building, stretching over 70,000 m2 and housing over 2000 employees. The building, which was designed in accordance with LEED standards (Leadership in Energy and Environmental Design), boasts several features that result in 37% less water and 20% less energy consumption compared to similar commercial buildings.
This is achieved through several design features such as ‘breathing glass curtain walls’; environmentally friendly parking areas; roofing materials with a high Solar Reflectance Index to dissipate heat, central energy control systems for air conditioning, lighting and projectors, amongst others. The building is the first New Construction to receive the LEED Gold certification for a commercial office in China. This accomplishment is recognised by Nokia across the globe and several other offices have adopted many of the sustainable practices from the China campus.
In Middle East and Africa, Nokia also takes sustainability and our commitment to the communities in which we operate seriously. Nokia employees take a personal responsibility for their impact on the environment by travelling less and using technology such as video conferences to conduct meetings as an alternative. Several employees also use public transport, cycle or walk to work to minimise carbon emissions. Nokia also encourages employees to work from home when possible to reduce the number of commuters. In our offices, we have minimised the need to print documents by having many automated systems in place. We also practice responsible recycling of materials such as paper, plastic and glass used in the offices, and we encourage employees to recycle their old phones, or to switch their phone chargers to more energy-efficient ones.
However, our greatest efforts in the region have been on generating consumer awareness on the issues of energy consumption and recycling. An estimated two thirds of the energy consumed by a mobile device is lost when the device is fully charged and unplugged from the charger but the charger remains connected to the mains (this is called the “no load” consumption of a charger). In May 2007, Nokia was the first mobile manufacturer to put alerts into the phone to remind consumers to unplug the charger after use. And over the last decade, Nokia has reduced the no load energy consumption of our chargers by an average of 80%.
Nokia also operates the world’s largest voluntary mobile phone recycling scheme, across an estimated 5000 Nokia Collection points in 85 countries. In MEA, the program has been launched successfully in many countries including South Africa, Nigeria, Ghana, Kenya, Egypt, Lebanon, Jordan, UAE and Saudi Arabia, Consumers are able to bring old, unwanted and broken mobile devices and accessories, not only from Nokia but any manufacturer, to the Nokia Customer Care points where they are collected for responsible recycling. All materials in Nokia phones can be used again to make parts for new products such as bicycles, kettles or even dental fillings, or to generate energy. In this way, nothing is wasted.
The sad truth is that only 3% of current mobile phone owners claim to recycle their devices. This stat was confirmed in research studies conducted in several countries across the globe including Nigeria and UAE. If all of the around 4.6 billion people using mobile phones globally recycled at least one of their unwanted devices, this could save 370,000 tonnes of raw materials and reduce gases to the same extent as taking 6 million cars off the road. This is significant proof point and highlights the need for continued consumer education if we are to build a sustainable future. Nokia will continue to be a pioneer in this area.
For Nokia, “Made in China” Takes on New Meaning:
For Nokia in China , quality counts. The ‘Made in China ’ label communicates that for Nokia China , excellence is the key cornerstone of their business.
Nokia has a global demand supply network that includes ten manufacturing facilities in nine countries around the world, including two in China - all with a worldwide reputation for quality products and reliability.
Global Quality Manufacturing in China
Nokia China ’s Beijing factory is located in the Xingwang Industrial Park , along with its headquarter, test center, and its suppliers. A plant in Dongguan was also established in 1995. Both factories have supplied products to different countries all around the world.
More important than the size of Nokia China ’s operations is their dedication to quality control and strenuous testing which has made products produced in China the same quality as any other Nokia factories in other parts of the world. You could see Nokia is committed to ensuring that manufacturing processes are world class. Nokia is taking the same processes, top quality worldwide. Nokia is also taking the exhaustive testing beyond the normal wear and use.
Nokia China is proud of its world class quality. David Tang, Vice Chairman of Nokia China, sums it up aptly, “Here, we adopt the same standards, the same processes, particularly in terms of quality…So you cannot see any difference from products that are produced in China and other parts of the world.”
World-Class Industry Chain
From the first stage in designing the phones to the final packaging, every single device as well as its components is painstakingly checked for quality at each step of the way. Products are tested well past the bounds of “everyday use”. Both Nokia China sites have been certified to the international standards of ISO9001 and ISO14001.
Nokia’s Beijing base boasts one of the world’s largest mobile phone industry chains, combining R&D, logistics, distribution, marketing and sales, services, management functions, and of course, manufacturing and testing. A device’s journey begins in Nokia China ’s design studios, where state of the art facilities house one of Nokia’s most advanced R&D sites in the world. Designers use sophisticated high-tech tools to create virtual blueprints of the products before transferring their designs to a machine that produces accurate 3D molds of phone models. And everything must fit in a consumer’s back pocket.
These plans are then translated into reality on the factory floor itself. All components for the phones such as the touchscreen and camera are inspected meticulously before assembly. A consumer can therefore buy a Nokia product with the knowledge that all capabilities have been thoroughly tested. Production performance can be viewed on internal websites, through real-time monitoring, on white boards, and so on. Overall, Nokia has manufactured approximately 700 million phones in China .
At the test centers, devices are subjected to every condition imaginable, at extremes beyond the strain of everyday life.
Those of us who SMS extensively are familiar with the strain an average keypad endures in a phone’s lifetime. Machines at the test center press keys up to one million times in the lab. Flip and slide tests are also performed countless times.
Everything is taken into account. Devices are exposed to dust, extreme temperatures, and sun bleaching . Since these products will be used globally, testing for usability in tropical and humid parts of the world is also taken into consideration, by placing phones in special chambers for weeks to test humidity levels as high as 95 percent.
Nokia China Sustainability Initiatives
Nokia China not only focuses on the products, but also on the people that make them. Their aim is to create a customer-supplier relationship, where each employee can take pride in and be responsible for their own work. Advancement and reward programs have been adopted, encouraging employees to constantly strive to improve quality and work processes through every stage of the process, from development to production.,
Nokia takes pride in their employee satisfaction and ensures positive working environments for their employees.
Quality of product is undeniably Nokia’s focus, but commitment to quality of the environment has taken priority as well. Sustainability and environmental protection have become matters of great importance for Nokia in their China operations.
The materials that go into all of Nokia products are carefully selected, ensuing environmental sustainability at every stage of the product lifecycle. Nokia operate the largest voluntary mobile phone recycling scheme in the world. People can bring their phones back for responsible recycling to around 5000 Nokia Care Points located in 85 countries.
Nokia’s Beijing green building, built with more than 10 per cent recycled materials, is one of the most environmentally friendly buildings in China . Energy consumption has been cut by 20 percent and water usage reduced by 37 per cent. Of the 70,000m2 complex, 77.4 per cent of the total area has been designed to be lit with natural light. A double-glass “wall curtain” lines the building to keep the interior at a constant temperature, saving heating and cooling costs.
Reducing its carbon footprint has also become a concern for Nokia; even the site of the Beijing campus itself is an environmentally friendly choice. Nokia has situated themselves less than one kilometer away from 20 of their suppliers, allowing their components to be delivered to the plant by gas-powered trains.
From the pre-production stage to the end of the product life cycles, Nokia China has made efforts to oversee all aspects of the lives of their devices. A phone-recycling program has been implemented in over 700 Chinese cities, so batteries can be safely disposed of and other parts stripped for recycling. 30 tons of phone units have been collected through the program so far.
This is the story of the world class Nokia product quality happened in every Nokia presences globally.
“Made in China” and Fake Phones – Understanding the Difference:
However, there is some truth to the stories on fake products and, indeed, many counterfeit phones are produced in China. A counterfeit phone is defined as an exact or indistinguishable replica of a genuine product and, as such, infringes upon the genuine product’s design and registered trademark. Counterfeiting is a global criminal activity that affects many successful consumer product companies in a wide range of industries and Nokia is no exception. Wherever it exists, counterfeiting also damages local economies and negatively affects people with legitimate jobs in the supply chain.
The prevalence of counterfeit phones and accessories is growing globally and we see this trend also in the Middle East and Africa. There are a number of reasons for this including the enormous growth in the number of mobile phone users in the region, the feature rich devices desired by consumers even in the entry markets and the increased availability and range of fake devices in the market.
Nokia takes Intellectual Property Rights and the protection of its brand seriously and works across several fronts to protect these. The company’s efforts focus on the entire counterfeit supply chain from the point of manufacture, through the distribution channels, to the markets in which the products are sold.
Nokia globally has a dedicated team focused on brand protection and combating counterfeit by maintaining an international network of investigators and lawyers specializing in anti-counterfeiting efforts. Where necessary, Nokia will use the appropriate legal remedies against suspected counterfeiters or enablers in the distribution chain. We have received excellent support from the Chinese government and customs authorities to clamp down on counterfeit devices leaving China, but there is more work to be done in China and across the distribution hubs.
“Within the Middle East and Africa region, Nokia has taken a very proactive approach to tackling the challenge of counterfeit products, says Jussi Hinkkanen, Head of Government Affairs for Nokia Middle East and Africa. “This approach targets government and government agencies, distributors, wholesalers, retailers and consumers.”
In several countries, Nokia is working closely with customs officials on training and tools to help them more effectively identify counterfeit goods at the port of entry. We are also working with local organisations such as consumer protection bodies and anti-counterfeit collaborations to lend support to their efforts, as well as collaborating with other brand owners in country to form coalitions that are more effectively able to lobby the government on legislation that enables more severe penalties for crimes associated with counterfeiting.
Nokia has adopted a hard line policy with its authorized distributors and retailers with regards to counterfeit products. Through our dedicated field force, Nokia is able to monitor which outlets are selling counterfeit products and these retailers can be penalized by not receiving rebates, incentives or marketing support. They may also lose their license as Nokia authorized dealers. In the same way, we are working to reward our loyal distributor and retail partners who deal only in genuine Nokia devices. Our marketing efforts will also encourage consumers to purchase from these genuine Nokia outlets for peace of mind.
“However, at the heart of all our efforts, remains our commitment to the consumer and to providing consumers with the true Nokia brand promise,” adds Hinkkanen. “Only genuine Nokia products bought through authorized dealers offer consumers a full 12 month warranty. Genuine Nokia products are manufactured to the highest quality standards and undergo stringent testing to ensure peace of mind. Our product promise also extends beyond devices to accessories, services and solutions, after sales support, responsible end of life – the full consumer offering”.
It is important for consumers to understand the risks of buying counterfeit mobile phones. Not only are these not manufactured according to stringent quality standards, they also do not offer the consumer any recourse in terms of after-sales service. At worst, these devices can even be harmful and potentially dangerous. There is no standardization on the materials used nor on the quality checks conducted during their manufacture. Manufacturers of counterfeit devices do not adhere to accepted practices in terms of factory conditions, radio wave emissions or environmental sustainability.
So, when purchasing your next Nokia device, the question to be asking is not “Was this phone manufactured in China?” but rather “Is this a genuine Nokia phone manufactured to the highest gold standards?” If not, it may be worth thinking twice about that purchase.