Responsible sourcing
We check the backgrounds of all new suppliers according to Nokian Tyres’ Due Diligence process before supplier approval. Our supplier governance model includes risk assessment on several factors of all suppliers. Sustainability critical suppliers are committed to our Supplier Code of Conduct, which, among other topics, requires compliance with international human rights, and labor rights and anti-corruption measures.
Targeted training
Sustainability training is provided for the purchasing and other relevant personnel. Internal CO2 and product carbon footprint trainings were held during spring 2023 for raw material procurement and R&D material development teams. ISCC PLUS certification training for procurement personnel was held in May 2024, and in February 2025 a supply chain sustainability risk training was held for them.
In addition, Sustainability Manager responsible for the supply chain sustainability, trains the category managers, buyers and R&D personnel related to each category’s relevant sustainability topics in frequent cross functional category meetings.
Sourcing natural rubber
Natural rubber is one of the main ingredients for 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. Sourcing natural rubber in a sustainable way is considered the most critical stage in a tire company’s supply chain.
A fragmented supply chain
Natural rubber is cultivated in forests, often on small farms. There are approximately 3–6 million farmers of natural rubber, who collect the milky latex or cup lumps and sell them to local dealers. They collect them from several farmers and then sell the latex forward to processing plants.
More than 85 percent of the world’s natural rubber is produced on farms smaller than two hectares in size whose daily output may be just a couple of kilograms of latex. Traceability remains problematic as the supply chain is fragmented.
Processing plants purify the natural rubber, process it as specified, pack it for further use, and sell it to the global traders or customers. Nokian Tyres exclusively purchases rubber processed by the plants our company has approved. You can read more of our sustainability audits here.
Cooperation with the industry
Nokian Tyres considers cooperation with the industry and other stakeholders to be vital in improving these conditions. The tire industry has made a joint effort to move towards sustainable natural rubber, also as concerns labor rights. Nokian Tyres is a member of the Global Platform for Sustainable Natural Rubber (GPSNR), which is a platform established by WWF, several other nonprofit organizations, rubber traders and processors, and large tire manufacturers.
The GPSNR strives to increase the supply and uptake of sustainable natural rubber in the global marketplace. Members of the platform will develop sustainable natural rubber standards, mechanisms and guidance on the implementation, monitoring, and verification of sustainable natural rubber commitments from companies.
Driving sustainability
We have adopted a Guideline for Sustainable Natural Rubber, Biodiversity and Deforestation that is fully aligned with the policy framework of the GPSNR. The guideline was approved by our President and CEO, and the company’s sustainability in natural rubber is developed through the framework of this policy. The 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 & reporting and
- driving effective implementation of all these components.
In 2025, 100 percent of Nokian Tyres’ approved natural rubber processors were either members of the GPSNR or had signed Nokian Tyres' sustainability commitment.
Developing the sustainability of our suppliers
We develop the sustainability of our supply chain systematically: We perform a risk assessment for all new suppliers. To mitigate risks and improve suppliers' ESG performance, we conduct audits. The supplier development process begins if sustainability risks are indentified during the audit. Improvement actions are defined, and we support suppliers with their implementation. In addition, we participate in suppliers' ESG capacity building through the GPSNR's Shared Investment Mechanism.
1: Supplier risk assessment
We assess the possible risks attached to new suppliers. The assessment model has four different categories: quality, sustainability (environmental, social & governance), business/strategic criticality, and safety at work.
Following the same logic, suppliers with identified potential quality risk must, at a minimum, have an ISO 9001 certified quality management system in place. We also prefer suppliers with an ISO 14001 certified environmental management system in critical categories. The supplier governance model is approved and overseen by the Vice president, Procurement.
Each raw material category has its own category strategy, which is reviewed annually. The category strategy includes various topics, such as commercial, risk management, sustainability and market analysis. Sustainability topics include both procurement-level and category-level sustainability KPIs and analysis of suppliers’ alignment on the Nokian Tyres sustainability requirements.
2: Taking action
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 additionally confirmed and verified through on-site audits.
If non-conformances are identified during the audit, these are fed back to supplier together with the positive findings, and corrective actions are required. Suppliers are given at least one month time to create a first corrective action plan after receiving the audit report.
3: Supporting suppliers in building their ESG capacity
We assist all suppliers that require support with their corrective action plan. When supplier shows active improvement, the business can continue as usual. In exceptional cases, if supplier cooperation and development was not successful, the business relationship with the supplier has been discontinued.
Nokian Tyres also participates in the Shared Investment Mechanism (SIM) by Global Platform for Sustainable Natural Rubber (GPSNR).
The SIM is designed to pool member contributions to fund projects that improve the economic, social, and environmental sustainability of natural rubber production. GPSNR manufacturers will contribute annually to a collective fund, which will be used for driving change and supporting various initiatives. For example, funds from the SIM are channeled to provide training, guidance, and infrastructure development for smallholder farmers to ensure that they adopt sustainable farming practices, enhancing productivity and environmental stewardship.