ANNUAL
REPORT
2025
TAKING CONTROL OF THE
UNPREDICTABLE
YEAR 2025
Nokian Tyres in short 5
Review by the President and CEO 6
2025 for Nokian Tyres 10
Results of our sustainability work in 2025 14
Taking control of the unpredictable 15
REPORT BY THE BOARD OF
DIRECTORS
Strategy and targets 20
Financial information 21
Business unit reviews 24
Shares and shareholders 26
Annual General Meeting 27
Significant risks 29
Key financial indicators 33
Formulas for the key financial indicators 35
Sustainability Statement
General information 37
Environmental information 62
Social information 96
Governance information 125
ESRS content index 130
Additional sustainability disclosures 140
Corporate Governance Statement
Introduction 143
Governance bodies 143
Board of Directors 145
Management team 150
Internal control and risks 152
Financial Statements
Consolidated financial statements 156
Parent company financial statements 206
Signatures and the auditor’s note 217
Auditor's report 218
ESEF Assurance report 222
Assurance report on the sustainability statement 224
Information on Nokian Tyres' share 226
Nokian Tyres' Group structure 227
REMUNERATION REPORT
Chair’s greetings 229
Introduction 230
Remuneration of the Board of Directors 231
Remuneration of the President and CEO 232
INVESTOR INFORMATION AND
INVESTOR RELATIONS
General information and IR contact 234
Table of contents
ABOUT THIS REPORT
This Annual Report provides an overview of Nokian
Tyres’ year 2025. The first part of the report presents
the key events, the President and CEO’s review and
the theme of winter driving.
The Report by the Board of Directors includes
statutory information, an analysis of business
performance and risks, and also covers the
Sustainability Statement and the Corporate
Governance Statement.
The Sustainability Statement has been prepared
in accordance with the EU’s CSRD and ESRS
requirements. The ESRS Content Index at the end of
the report provides links to detailed information.
The Financial Statements include the Group’s and the
parent company’s financial statements and notes. The
Remuneration Report describes the remuneration
principles and the remuneration of the management.
The report is designed to be easy to use: the reader
can navigate to different contents using the navigation
in the top bar or through the tables of contents, and
thus easily find the most interesting entities.
2
Financial
Statements
Remuneration
Report
Report by the
Board of Directors
Sustainability
Statement
Corporate Governance
Statement
Year 2025
Taking control of the unpredictable
Weather is becoming harder to predict, with changing
patterns and unexpected extremes. As winters change
everywhere, driving is changing, too. Adaptation to
shifting climates is taking place through advancements
in technology as well as with regulations.
Nokian Tyres was born to master demanding conditions.
As the pioneer of winter driving, change is not our
obstacle – it is our element. It challenges us to
anticipate more, to innovate faster, and to design safety
for roads no one has yet driven. From unpredictable
winters to evolving global landscapes, our job is to stay
ahead and ensure safe journeys for drivers.
3
THE AVERAGE NUMBER
OF SNOWY DAYS IN
A YEAR IN NOKIA,
FINLAND
90–120
YEAR 2025
Nokian Tyres in short 5
Review by the President and CEO 6
2025 for Nokian Tyres 10
Results of our sustainability work in 2025 14
Taking control of the unpredictable 15
Nokian Tyres
in short
Nokian Tyres’ purpose is to make the world
safer by reinventing tires, and how they are
made, over and over again - a safer place to
drive, work and live now and for generations
to come.
Inspired by our northern heritage, we develop and
manufacture premium tires for passenger cars,
trucks and heavy machinery with sustainability at
the heart of all our operations.
Our Vianor chain provides car and tire services.
Nokian Tyres serves its customers in its core
markets in the Nordic Countries, North America,
and Central Europe.
Nokian Tyres produces tires in its factories in
Nokia, Finland, Oradea, Romania and Dayton, USA.
In addition, the company has a wheel factory in
Finland. Manufacturing partners complement own
production. Nokian Tyres’ testing centers are in
Nokia and Ivalo in Finland, and Santa Cruz de la
Zarza, Spain.
The company’s headquarters is in Nokia, Finland,
and its shares are listed on Nasdaq Helsinki.
Read more
NOKIAN TYRES IN FIGURES FOR 2025
EmployeesNet sales Products were sold in
4,000
globally
47
countries
1.4
EUR billion
NET SALES* BY BUSINESS UNIT, %
* includes internal sales
Passenger Car Tyres 62% (60)
Heavy Tyres 17% (18)
Vianor 26% (28)
5
Financial
Statements
Remuneration
Report
Report by the
Board of Directors
Sustainability
Statement
Corporate Governance
Statement
Year 2025
Strong progress
in 2025
Net sales grew across all regions, and we delivered a clear
improvement in profitability. We also strengthened our
operational performance and significantly improved cash
flow. Together, these achievements show that we are
building the next era of profitable growth while reminding
us that determination and focus remain essential going
forward.
WE ARE
BUILDING
THE NEXT
ERA OF
PROFITABLE
GROWTH.
CEO REVIEW
2025 was a year of strong progress for Nokian Tyres,
despite an uncertain operating environment and
weak market conditions. The fourth quarter was our
strongest in three years. I want to thank our team
for their focused execution and commitment to the
priorities we set for the year.
6
Financial
Statements
Remuneration
Report
Report by the
Board of Directors
Sustainability
Statement
Corporate Governance
Statement
Year 2025
As highlighted in our reports during the year, we accelerated
actions to strengthen our financial performance by optimizing
our product and price/mix, improving operational efficiency, and
fully leveraging our expanded manufacturing platform. We also
maintained strict cost discipline across the organization, from raw
materials to indirect and SG&A spending. These measures steadily
improved our performance throughout the year and will continue
in 2026. In addition, better working capital management and lower
capital expenditure supported stronger cash flow in 2025.
At the same time, we completed a significant investment phase
during which we rebuilt our production capacity. The ramp up of
the new Romanian factory progressed as planned, and in 2025 we
produced one million tires. A great achievement especially from
our local team!
Strengthening our consumer focus and our brand is essential to
shaping the future of Nokian Tyres. New partnerships formed in
2025 with the International Ice Hockey Federation and former F1
champion Kimi Räikkönen are to boost our global visibility and
reinforce our premium brand image.
Overall, 2025 marked a turning point for Nokian Tyres, showing
our ability to adapt and remain competitive. While we continue
strengthening our performance, we enter the next phase on a
solid foundation.
CEO REVIEW
A STRONGER
CONSUMER
FOCUS AND A
STRENGTHENED
NOKIAN TYRES
BRAND ARE
CENTRAL TO US.
7
Financial
Statements
Remuneration
Report
Report by the
Board of Directors
Sustainability
Statement
Corporate Governance
Statement
Year 2025
Making the unpredictable predictable
Nokian Tyres’ strength lies in its deep experience with extreme
weather conditions. The company’s strategic theme,
Making the
unpredictable predictable in any weather condition
, reflects our
heritage and direction.
For 128 years, we have transformed unpredictable conditions
into predictable safety for drivers. Over the past years, Nokian
Tyres has navigated the most significant transformations in its
history. This period has been a complete strategic reset as we
rebuilt the new Nokian Tyres platform. As we now enter the next
phase of our development, we will refocus on sustainable, value
driven growth. This positions us to take better control of the
unpredictable also in the future and will reduce our exposure to
geopolitical risks.
Our strategic market segments
We are sharpening our position to win where it matters and
where we can differentiate, create the most value. Our focus is
not on growth itself but on profitable growth.
Our aim in our strategic market segments are:
• In passenger car tires a market leading position in winter
tires remains our priority.
• Demand for high quality all-season and all-weather tire
solutions grows rapidly and we aim to grow faster than
the market. With our winter expertise, we are uniquely
positioned to be able to win in this segment.
• We aim for above-market growth also in agriculture and
forestry as selected heavy tire segments. We are already
leading in forestry tires. Now we will extend this expertise to
high value agricultural segment.
• Vianor is a key enabler in Europe, serving as a sales and
service channel for both passenger car and heavy tires.
REFOCUS ON
SUSTAINABLE,
VALUE-DRIVEN
GROWTH.
Our progress is built on our strong heritage and know-how,
innovation capabilities, and an excellent team. Our strategic plan
includes a strong pipeline of innovative new products that will be
produced in our advanced production facilities. A proof point of
this is the launch of our disruptive winter tire technology.
Nokian Tyres is entering a new era of winter driving with the
Hakkapeliitta® 01, the world’s first studded winter tire that
automatically adapts to temperature changes. This breakthrough
embodies more than 90 years of Hakkapeliitta innovation and
delivers on our long standing ambition to create a studded tire
that adjusts to changing road conditions.
Powered by Double Action Stud Technology, the tire shifts between
stud ON and OFF modes, offering optimal grip in every winter
temperature from icy extremes to milder, variable conditions.
This is the first technology of its kind in our industry and further
strengthens our position as the global pioneer of winter driving.
I am proud of our team who was able to achieve what was
previously thought impossible: a studded tire that responds to
temperature changes to deliver ultimate safety while protecting
the road.
Sustainability is part of Nokian Tyres’ culture
Sustainability is a part of Nokian Tyres’ culture, strategy, and goals.
The company’s sustainability work is based on commitments,
stakeholder dialogue, and the ambition to be a leader in
sustainability. 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.
The Board has confirmed the previously announced non financial
targets. Nokian Tyres will review these targets during 2026.
CEO REVIEW
8
Financial
Statements
Remuneration
Report
Report by the
Board of Directors
Sustainability
Statement
Corporate Governance
Statement
Year 2025
NOKIAN TYRES’ FINANCIAL TARGETS
Financial figures 2025 2024
Net sales, EUR million 1,373.6 1,289.8
Segments EBITDA 222.2 185.2
Segments operating profit margin, % 6.6% 5.5%
Net debt/Segments EBITDA 3.0 3.3
Dividend, EUR 0.25* 0.25
*The Board’s proposal to the Annual General Meeting.
PAOLO POMPEI
PRESIDENT AND CEO
Nokian Tyres’ financial targets extending
until the end of 2029
Nokian Tyres updated its financial targets in the beginning of 2026.
Our updated financial targets set a clear direction for the future and
reflect our ambition to create sustainable value for our shareholders.
Profitability improvement will be driven both by volume growth and
by more than EUR 100 million coming from targeted performance
initiatives. While maintaining strong performance in the Nordics, we
aim to accelerate growth in North America and Central Europe. We
will prioritize value creation through premium positioning, improved
product mix and disciplined cost and operational efficiency.
The first year driven by collaboration
and determination
2025 marked my first year at Nokian Tyres, a year defined by
collaboration, determination, and progress. Even as we faced a
challenging external environment, we tackled the unpredictability
side by side and successfully advanced into the next stage of our
development.
Over the past year, I’ve had the chance to meet many of our
customers, shareholders, and colleagues, and to visit our sites across
several countries. Seeing the depth of expertise within our teams and
the strength of our customer partnerships has been truly motivating.
I would like to thank our customers, suppliers, and partners for
their collaboration and continued confidence as we continue to
build the future of Nokian Tyres together.
PROFITABILITY NET SALES
1.8–2.0
billion
EUR
<2
CAPITAL STRUCTURE
Net debt/Segments EBITDA
>15%
Segments operating profit
>24%
Nokian Tyres prioritizes
Segments EBITDA as a
percentage of net sales as
its key profitability metric.
Segments EBITDA
FINANCIAL
TARGETS
UPDATED
IN THE
BEGINNING
OF 2026.
50%
of net earnings.
At least
DIVIDEND
The company’s dividend
policy remains unchanged.
CEO REVIEW
9
Financial
Statements
Remuneration
Report
Report by the
Board of Directors
Sustainability
Statement
Corporate Governance
Statement
Year 2025
2025 for Nokian Tyres
Kimi Räikkönen has become Nokian Tyres Brand Ambassador. Nokian Tyres and former Finnish
Formula 1 driver Kimi Räikkönen have joined forces to elevate the Finnish brand’s global
presence and amplify its international recognition. Both share the same DNA: Finnish roots,
uncompromising performance, and the ability to thrive under pressure. Both are built for
extremes - whether it’s conquering the racetrack or navigating roads in changing conditions
and harsh weather.
Read more
Nokian Tyres has signed as Official Sponsor for the 2026 and 2027 IIHF Ice Hockey World
Championships. Partnering with the 2026 and 2027 IIHF Ice Hockey World Championships to be
competed in Switzerland and Germany is a perfect fit. Ice hockey is a sport built for extreme
conditions. It demands peak performance on ice where grip, speed, and precision define
success.
Read more
New collaboration with Kimi Räikkönen Official Sponsor for
During 2025, Nokian Tyres made strong progress on several fronts. The company introduced important new products and solutions, including the Nokian Tyres Seasonproof 2 all-
season tire and the award winning Nokian Tyres Intuitu™ 2.0 smart tire technology. One of the year’s main milestones was the start of tire deliveries from the new factory in Oradea,
Romania, followed later in the year by reaching the full year production target of one million tires. Nokian Tyres also strengthened its global brand when Kimi Räikkönen started as a
brand ambassador, supporting visibility in key markets. More on some of our key highlights from 2025 can be found in the following section.
10
Financial
Statements
Remuneration
Report
Report by the
Board of Directors
Sustainability
Statement
Corporate Governance
Statement
Year 2025
Nokian Tyres Intuitu™ 2.0 Smart Pressure Assistant was awarded the Silver Medal distinction
of the Agritechnica Innovation Award. Developed for Nokian Tyres Soil King VF tractor tires,
the next-generation smart tire technology uses tire sensors to determine the axle load during
driving and suggests the correct tire pressure for use on the road and for working on the field.
The award-winning innovation also supports Nokian Tyres’ vision to lead the world to drive
smarter.
The Agritechnica Innovation Award is one of the most respected honors in the global
agricultural machinery industry, recognizing groundbreaking technologies that advance
farming practices, improve efficiency, and promote sustainability.
Read more
The launched Nokian Tyres Seasonproof 2
tire provides top-tier safety on snow and
slush as well as exceptional performance
and a smooth driving experience in summer.
It contains up to 38% of renewable, recycled
and ISCC PLUS certified materials, and is
produced in our new factory in Oradea,
Romania.
Seasonproof 2 comes with Premium TÜV
SÜD Tire Test Mark, confirming its high level
of quality and performance.
Read more
Agritechnica Innovation Award and the next-generation
smart tire technology Nokian Tyres Intuitu™ 2.0
The new Nokian Tyres Seasonproof 2 all-season tire
– First tire range produced in our Romania factory
Nokian Tyres and American Tire Distributors (ATD) announced a distribution partnership to
serve tire dealers throughout the United States. The ATD’s extensive network includes more
than 110 distribution centers serving approximately 80,000 customers. The relationship
with ATD supports our strategy to establish national distribution of our extensive product
portfolio.
First-ever nationwide distribution agreement in North America
11
Financial
Statements
Remuneration
Report
Report by the
Board of Directors
Sustainability
Statement
Corporate Governance
Statement
Year 2025
Romania factory story continues
Our factory in Oradea has produced its one millionth tire of the year on December 20, 2025.
The tire was produced according to the production target for the year. The factory focuses on
manufacturing passenger car tires sold in the European market. The millionth tire produced in
Oradea was a Nokian Tyres Snowproof 2 winter tire.
Read more
One millionth tire produced
In September, we celebrated the very first Nokian Tyres Family Fest in Oradea. With around
700 participants, the event brought together employees and their loved ones for a
memorable experience in the sun.
Watch the video and more images from the event
Nokian Tyres Family fest
The factory started tire deliveries
Our Romania factory started tire deliveries in March, 2025. The Nokian Tyres team filled up
the first truck with made in Romania Nokian Tyres tires, and the truck started its journey from
our tire factory to our distribution centers and onwards to our customers in Central Europe,
bringing safety to Central and Southern European drivers.
Read more
12
Financial
Statements
Remuneration
Report
Report by the
Board of Directors
Sustainability
Statement
Corporate Governance
Statement
Year 2025
The modern and cost-
effective warehouse for
passenger car tires will
serve the Finnish factory
in Nokia and enable us to
centralize warehouses,
which are currently located
in different parts of Finland,
to Nokia. The aim of the
project is to support Nokian
Tyres’ competitiveness by
improving the efficiency
and delivery reliability of
the Finnish factory.
Read more
Expanding the logistics center
in Nokia, Finland
Retread tires, also known
as recapped tires, are
widely used with heavy
vehicles, such as trucks,
buses and off-the-
road vehicles in various
industries. Thanks to
continuous development,
Noktop is still at the
forefront of the industry.
Noktop retreading method celebrated
its 50th anniversary
Paolo Pompei started as President and CEO of Nokian Tyres
on January 1, 2025. Throughout the year, Paolo visited our
factories, and sales offices around the world, meeting
with teams and key customers. These visits provide an
important opportunity to share insights, strengthen
connections, and shape the future together.
Paolo Pompei met our team members
and key customers globally
At the beginning of June in 1995 Nokian Tyres returned
to being an independent listed company when it was
listed on the Helsinki Stock Exchange under the name
Nokian Tyres plc.
We celebrated our 30-year
anniversary as a listed company
The Nokian Tyres Green Step Ligna concept tire,
developed in collaboration with UPM, was named the
winner of the 2025 New Wood competition. Experts of
the jury believed the innovation has the potential to
transform the entire automotive industry.
Read more
The Nokian Tyres Green Step Ligna
concept tire wins at the New Wood
2025 bioeconomy breakthrough
competition
13
Financial
Statements
Remuneration
Report
Report by the
Board of Directors
Sustainability
Statement
Corporate Governance
Statement
Year 2025
Results of our sustainability work in 2025
Systematic work on sustainability has resulted in significant recognition from various external sustainability assessments.
IN TOP 10 IN THE
AUTOMOTIVE COMPONENTS
SECTOR SINCE 2016
S&P Global CSA
76
LEADERSHIP-LEVEL
SCORE SINCE 2020
CDP Climate
A-
A-LIST MEMBER
CDP Supplier
Engagement Assessment
A
A LEADER IN OUR INDUSTRY
MSCI
AAA
IN TOP 2% OF ASSESSED
COMPANIES
GOLD
EcoVadis
IN TOP 100
TIME & Statista
WORLD’S MOST
SUSTAINABLE
COMPANIES 2025
LIST MEMBER SINCE 2021
Financial Times & Statista
EUROPE’S CLIMATE
LEADERS
Sustainalytics
ESG
TOP-RATED
COMPANIES
2025
14
Financial
Statements
Remuneration
Report
Report by the
Board of Directors
Sustainability
Statement
Corporate Governance
Statement
Year 2025
TAKING CONTROL OF
THE UNPREDICTABLE
Winter new future of winter driving
Nokian Tyres innovates and designs for the unpredictable.
Our roots are in the north, where seasons change and driving
conditions are often challenging. This is why Nokian Tyres is
especially known as the developer of premium winter tires
and forestry tires. However, driving conditions are becoming
less predictable across the globe. We aim to ensure safety for
drivers in all conditions - the basic principle that has remained
the same since 1934 when we invented the world’s first winter
tire.
Changing winters: adapting to a new reality
Winters are no longer what they used to be. Across the globe,
the cold season is becoming less predictable, shifting rapidly
between freezing temperatures, slush, rain, and bare asphalt.
Winter conditions vary more sharply than before, even during
the same day – and the performance of tires is increasingly
dependent on the surface you are driving on.
These changes are driven by a warming climate, which brings less
consistent snowfall, more frequent melting, and heavier rainfall.
WINTER CONDITIONS
VARY MORE SHARPLY
THAN BEFORE.
This transformation impacts everyday life in many ways. Roads
and infrastructure face greater stress from freeze-melting
damage, while drivers encounter conditions that change from
hour to hour.
For drivers, safety remains the priority. Traditional winter
tires were designed for stable, snowy conditions - but today’s
reality demands innovation. Nokian Tyres has embraced this
challenge by developing technologies that adapt to changing
conditions.
Changing winters call for resilience and flexibility - from
infrastructure planning to tire technology. By anticipating
these shifts and innovating responsibly, we can ensure that
mobility remains safe and sustainable, no matter what the
season brings.
Winter conditions around the world:
a diverse reality
Winter is not a uniform season - it varies dramatically across
regions, shaped by latitude, geography, and local climate
patterns. Winter conditions range from icy extremes to
Year 2025
Report by the
Board of Directors
Sustainability
Statement
Corporate Governance
Statement
Remuneration
Report
Financial
Statements
15
mild, wet variability. This diversity drives the need for tailored
solutions, whether studded tires for Nordic roads, all-weather
tires for North America, or all-season options for Central
Europe.
Studded tires and changing regulations
Studded tires are standard equipment for winter driving in
Nordic countries. Studded winter tires offer the best grip on icy
and slippery roads, making them the safe choice in extreme and
variable winter conditions.
However, they also have drawbacks and are less comfortable
due to the tire noise: they wear down road surfaces, produce
harmful street dust that affects air quality, and produce tire
noise. Many countries limit the use of studded tires to winter
conditions or mountainous areas and restrict their use in urban
areas. Regulations related to studded tires are being tightened
globally to balance safety and environmental impacts.
Non-studded winter tires offer grip with
innovative tread design
Non-studded winter tires deliver a quiet and comfortable
driving experience. They provide flexibility for the winter
tire season, as they can be deployed earlier in fall and kept
longer into spring. They cause little road wear and generate
minimal road dust, which improves air quality and supports the
sustainability of infrastructure.
Non-studded winter tires are ideal for urban areas and regions
with mixed winter conditions, offering strong grip on snow.
However, drivers should be careful in very slippery conditions, as
on clean ice the grip may reduce.
Another world’s first in winter driving
Nokian Tyres Hakkapeliitta® 01, the world’s first
studded winter tire that automatically adjusts to
temperature changes, ushers in a new era of winter
driving.
Nokian Tyres is breaking new ground with the launch of
the Nokian Tyres Hakkapeliitta® 01, the world’s first winter
tire designed to automatically adapt its grip in response
to changing temperatures. This innovation marks the
beginning of a new era of driving on icy and snowy roads,
promising drivers both enhanced safety and comfort like
never before.
It is not the first time that the company has been at the
forefront of winter driving. In 1934 Nokian Tyres invented
the world’s first winter tire. In 1936, Nokian Tyres brought a
further improved design specifically for passenger cars to
the market, the Lumi-Hakkapeliitta, Snow-Hakkapeliitta.
NOKIA, FINLAND
90 years later, the Nokian Tyres Hakkapeliitta® is one of the
world’s best-known winter tire brands.
The newest generation of the legendary Hakkapeliitta®
family changes winter driving yet again. After years
of dedicated research, thousands of prototypes, and
rigorous testing in diverse environments, Nokian Tyres
has achieved what many thought impossible: a tire that
responds dynamically to winter’s unpredictability while
maintaining quiet ride and sustainability.
With the new Nokian Tyres Hakkapeliitta® 01, the company
set out to rethink what a studded winter tire can be.
As temperatures fluctuate, the studs on Nokian Tyres
Hakkapeliitta® 01 shift seamlessly between ON and OFF
modes, ensuring optimal traction on all road surfaces.
The development process aimed for a tire that doesn’t
compromise between superior ice grip and low road wear,
which is a common trade-off in winter tire development.
Instead of a compromise, a solution was developed
where grip adjusts automatically to the temperature,
delivering maximum safety when it’s needed, and
gentler road contact when it’s not. With the Nokian
Tyres Hakkapeliitta® 01 drivers no longer have to choose
between superior ice grip and minimizing road wear, and
it helps drivers account for winter weather that is less
predictable than ever.
Read more
16
Financial
Statements
Remuneration
Report
Report by the
Board of Directors
Sustainability
Statement
Corporate Governance
Statement
Year 2025
Snowflake and ice grip certificates ensure
safety in different types of winter conditions
To make it easier for drivers to choose safe tires for winter
driving, the tire manufacturers use the Three-Peak Mountain
Snowflake (3PMSF) symbol. The emblem is an internationally
recognized symbol that certifies a tire’s ability to perform
in winter conditions. A tire manufacturer can include the
3PMSF symbol on the tire sidewall once the tire has passed
the required snowgrip performance test.
In addition to the snow grip certification, the tires designed
for Northern Europe and the harshest parts of North
America also feature the ice grip symbol as proof of safe
grip in icy demanding winter driving conditions. It is essential
for all drivers to ensure that their winter tires carry either
the snowflake symbol, the ice grip symbol, or both. Drivers
can find the symbols molded into the tire’s sidewall, as well
as in product descriptions online and at dealerships.
The future of winter driving
As winters grow more unpredictable, the future of driving
will demand adaptability, sustainability, and resilience. Roads
will face shifting conditions - from frost to rain to sudden ice
- while regulations and environmental priorities continue to
evolve.
Choosing the right type of winter tire is straightforward, but it
depends on the conditions the driver faces.
Tire development will rely on innovative solutions that balance
safety with ecological responsibility, ensuring drivers remain
confident and in control no matter how the seasons change.
40 years of innovation above the Arctic Circle
Tire testing is an integral part of the tire development
process. Nokian Tyres’ Ivalo test center, or White Hell as
it is called, located in Finnish Lapland, plays a vital role
in maintaining Nokian Tyres’ position as the expert of
winter driving. Opened in 1986, the year 2026 marks the
40th anniversary of the world’s largest winter tire proving
ground.
During the four decades of its operations, White Hell has
grown into a 700-hectare site with over 40 km of tracks
and advanced facilities, testing up to 5,000 tires each
season. The center’s cold, demanding winter environment
allows Nokian Tyres to innovate winter, all-weather and
all-terrain tires for global markets. Producing trustworthy
tires requires repetition, precision and professional skill,
and only rigorous testing ensures safety for drivers in
real-life conditions.
Read more
TROMSØ, NORWAY
Proper storage keeps tires safer for longer
In the Nordic countries, proper storage is needed for the
tire set not in use that season. Storing tires correctly
in clean, dry, climate-controlled conditions slows aging
and extends their lifespan. Avoiding exposure to light,
chemicals and compression is also important.
For many drivers, proper tire storage at home is difficult
due to lack of space or suitable conditions. In such cases,
a tire hotel is an easy and safe solution. Vianor’s tire hotel
offers reliable and safe storage for tires. The tires are
cleaned, inspected and stored, and before each driving
season, a tire professional inspects their condition and
pressure and mounts them on the car. The tires remain in
as good a condition as they were when left, and the driver
gains more safe driving kilometers.
Read more
IVALO, FINLAND
17
Financial
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Report by the
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Sustainability
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Corporate Governance
Statement
Year 2025
All season confidence for Europe’s
varying winters
Europe’s varied geography means tire needs for winter
driving differ from area to area. Harsh winter climates
require specialized winter tires, while in milder regions all-
season tires offer a convenient, safe solution. All-season
tires designed for Central and Southern European drivers
meet winter grip standards, indicated by the Three-Peak
Mountain Snowflake symbol.
Nokian Tyres’ newest all-season tire, Nokian Tyres
Seasonproof 2, offers safe year-round performance.
The Seasonproof 2 features advanced safety and
sustainability with 38% renewable, recycled and ISCC
PLUS certified materials. The tire is also produced
in Nokian Tyres’ factory in Romania, the world’s first
full-scale zero-CO
2
-emissions tire factory.
Read more
The unique winter solution for
North American drivers
Winter in North America varies widely, and changing
climate patterns also create challenges for drivers. For
more than 25 years, Nokian Tyres has offered a unique
solution for North American drivers facing unpredictable
winter weather: the all-weather tire.
All-weather tires are designed for areas in North America
where winter varies between rain, slush and occasional
snow rather than months of deep freeze. They offer
reliable winter grip, while still performing well on hot
summer roads. What makes them a true four-season
solution for North America is that it also offers reliable grip
on snow. As proof of tested winter performance the tires
have the Three-Peak Mountain Snowflake (3PMSF) symbol
on the sidewall. While dedicated winter tires are best for
harsh winter conditions, all-weather tires provide safety
and versatility year-round.
Read more
COLORADO, NORTH AMERICA
Safer winter work starts with safer tires
For heavy machinery, reliable winter grip is a necessity for
maintaining productivity and safety. This need for winter
performance is nothing new, and in the 1980’s, Nokian
Tyres developed the world’s first tire for heavy machinery
designed to be used also in the winter, ensuring safety
year-round. Today, that innovation has evolved into
the Nokian Tyres Hakkapeliitta TRI tire for tractors and
loaders.
To simplify the choice of safe tires, Nokian Tyres uses
the M+S marking on its heavy tires designed for winter
service. The M+S designation is granted only after testing
demonstrates that the tire meets defined requirements
for winter use. Ultimately, choosing the right tire for heavy
machinery is an investment in safety, efficiency and peace
of mind.
Read more
BUSA NORD DI FRADUSTA, ITALYBAVARIAN ALPS, GERMANY
18
Financial
Statements
Remuneration
Report
Report by the
Board of Directors
Sustainability
Statement
Corporate Governance
Statement
Year 2025
THE COLDEST EVER
TEMPERATURE
MEASURED IN IVALO,
FINLAND
-48,9 °C
REPORT BY
THE BOARD OF
DIRECTORS
Strategy and financial targets 20
Financial information 21
Business unit reviews 24
Shares and shareholders 26
Annual General Meeting 27
Significant risks 29
Key financial indicators 33
Formulas for the key financial indicators 35
Report by the Board of Directors
In 2025, Nokian Tyres continued to build the foundation for
profitable growth. The year marked an important step in
improving the company’s performance and finalizing the
significant investment phase as the company moves into its
next phase of development.
The operating environment remained volatile due to
geopolitical and tariff-related uncertainties. Despite these
headwinds, the company progressed steadily during the year,
supported by commercial and operational improvements.
At the same time, Nokian Tyres advanced its sustainability
and innovation efforts. The world’s first zero-CO
2
-emissions
(Scope 1 & 2) tire factory began production, progress was made
in increasing the use of recycled and renewable materials, and
several new products were successfully launched. In addition,
the company engaged in carefully selected partnerships to
further strengthen brand and premium positioning in its core
markets.
Strategy implementation and financial targets
Nokian Tyres aims for profitable growth by strengthening its
position in key markets in the Nordic countries, North America,
and Central Europe. The emphasis is on high-value segments,
particularly on premium winter and all-season passenger car
tires as well as on heavy tires.
In 2025, commercial and operational improvements drove
profitable growth. The focus was on optimizing price/mix and
improving manufacturing efficiency. Higher average selling
prices and sales volumes in Passenger Car Tyres and as well
as strict cost control across the organization contributed to
margin improvement.
The company completed the major investment phase, resulting
in a more balanced manufacturing platform that supports a
local-for-local production model.
Innovations and high product quality remained core strengths,
demonstrated by several tire launches emphasizing safety,
sustainability and performance. Macro trends, including
electrification, growing SUV and CUV penetration, and
increasing demand for sustainable products, continued to
support long-term growth opportunities
In the second half of 2025, Nokian Tyres conducted a review of
its strategy. The review clarified priorities and helped identify
opportunities to further accelerate execution, sharpen focus,
and enhance value creation across the organization.
After the review period, on February 10, 2026, Nokian Tyres
published its updated strategy and financial targets extending
until the end of 2029. Further information is available on a stock
exchange release available at company.nokiantyres.com/
investors/.
20
Financial
Statements
Remuneration
Report
Sustainability
Statement
Corporate Governance
Statement
Year 2025
Report by the
Board of Directors
Net sales and operating profit
Net sales in 2025 totaled EUR 1,373.6 million (2024: 1,289.8; 2023: 1,173.6) and increased by 6.5%. With comparable currencies, net sales
increased by 7.2%. Net sales grew in all regions. Currency exchange rates affected net sales negatively by EUR 9.2 million.
Net sales by geographical area
EUR million 2025 2024 Change CC* Change
% of total
net sales in 2025
% of total
net sales in 2024
Nordics 727.4 696.2 4.5% 3.6% 53% 54%
Other Europe 343.2 319.6 7.4% 6.8% 25% 25%
Americas 298.0 270.3 10.3% 16.6% 22% 21%
Other countries 5.0 3.7 35.3% 35.3% 0% 0%
Tota l 1,373.6 1,289.8 6.5% 7.2% 100% 100%
*Comparable currencies.
Net sales by business unit
EUR million 2025 2024 Change CC* Change
% of total
net sales in 2025**
% of total
net sales in 2024**
Passenger Car Tyres 858.4 779.9 10.1% 11.5% 62% 60%
Heavy Tyres 232.0 235.1 -1.3% -1.2% 17% 18%
Vianor 363.8 354.9 2.5% 1.6% 26% 28%
Other operations and
eliminations -80.6 -80.1 -0.7%
Tota l 1,373.6 1,289.8 6.5% 7.2%
*Comparable currencies.
**Includes internal sales.
Operating profit was EUR 35.8 million (2024: 1.8; 2023: 32.1).
Non-IFRS exclusions were EUR -55.5 million (-69.6), of which EUR
-46.9 million (-22.1) were related to the Romanian factory
ramp-up and EUR -5.9 million (-33.7) to the US factory ramp-up.
Segments operating profit was EUR 91.3 million (2024: 71.4; 2023:
65.1). The increase was driven by higher passenger car tire prices
and sales volume. Segments operating profit percentage was
6.6% (2024: 5.5%; 2023: 5.5%). Segments ROCE was 4.7% (3.9%).
21
Financial
Statements
Remuneration
Report
Sustainability
Statement
Corporate Governance
Statement
Year 2025
Report by the
Board of Directors
Segments operating profit by business unit
EUR million 2025 2024
Passenger Car Tyres 80.9 52.2
Heavy Tyres 24.3 30.0
Vianor -3.5 -3.8
Other operations and eliminations -10.4 -7.0
Segments operating profit total 91.3 71.4
Non-IFRS exclusions -55.5 -69.6
Financial items and taxes
Net financial expenses were EUR 51.7 million (33.3), including
net interest expenses of EUR 39.1 million (30.7). Net financial
expenses include an expense of EUR 12.6 million (2.6) due to
exchange rate differences. Result before tax was EUR -15.9
million (-31.5) and taxes were EUR 0.9 million (8.7). Segments
result before tax was EUR 39.6 million (38.1). Result for the
period was EUR -15.0 million (-22.8). Segments result for the
period was EUR 29.1 million (31.4). Earnings per share were EUR
-0.11 (-0.17).
Return on equity was -1.2% (2024: -1.7%; 2023: -23.4%).
Guidance given for 2025
In Nokian Tyres’ financial statement release for 2024 published
on February 4, 2025, the company published the following
outlook for 2025:
In 2025, Nokian Tyres’ net sales are expected to grow and
segments operating profit as a percentage of net sales to
improve compared to the previous year.
Cash flow
In 2025, cash flow from operating activities was EUR 146.2 million
(77.4). Working capital decreased by EUR 17.2 million (increased by
13.6). Inventories decreased by EUR 6.6 million (decreased by 16.2)
and receivables decreased by EUR 24.2 million (increased by 63.8).
Payables decreased by EUR 13.6 million (increased by 33.9).
Investments
Investments totaled EUR 126.9 million (350.1). Depreciations and
amortizations totaled EUR 142.2 million (124.2).
Nokian Tyres has built 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
-emissions (Scope 1 & 2) tire factory. The first tires
were delivered from the factory to Nokian Tyres distribution
centers in March 2025, and commercial tire deliveries started in
the second quarter. Altogether, one million tires were delivered
in 2025, and the ramp-up will continue until the full capacity
of 6 million tires is reached based on future demand. There
is potential for future expansion at the site. 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. To support the establishment of the factory, the
European Commission approved in 2024 up to EUR 99.5 million
Romanian state aid measure. The first installment of EUR 32.6
million was paid at the end of 2025.
In the second quarter, Nokian Tyres announced that it will
expand its logistics center, which is serving the Finnish factory
in Nokia, by building a modern and cost-effective warehouse for
passenger car tires. The expansion will be completed by the end
of 2027 on a plot owned by Nokian Tyres adjacent to the current
logistics center in Nokia, Finland.
22
Financial
Statements
Remuneration
Report
Sustainability
Statement
Corporate Governance
Statement
Year 2025
Report by the
Board of Directors
Financial position
EUR million Dec 31, 2025 Dec 31, 2024
Cash and cash equivalents 146.9 176.1
Interest-bearing liabilities 810.9 789.2
of which current interest-
bearing liabilities 92.7 47.3
Interest-bearing net debt 664.0 613.1
Unused credit limits 764.7 803.3
of which committed 304.5 304.4
Gearing, % 57.0% 48.2%
Equity ratio, % 50.3% 52.5%
In March 2025, the remaining 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 2026 to April
2027. Additionally, the first extension option was exercised for
the EUR 100 million bilateral sustainability-linked term loan,
extending its maturity date from May 2027 to May 2028.
In June 2025, new two-year bilateral revolving credit facilities
totaling EUR 100 million were signed to replace the existing
facilities of the same amount due in 2026. The new facilities
include extension options of up to two years and will serve as a
backup for general corporate purposes.
In November 2025, the last one-year extension option was
exercised for a EUR 200 million sustainability-linked revolving
credit facility. Thus, the maturity date for this facility was
extended from January 2028 to January 2029.
The average interest rate of interest-bearing financial liabilities
was 4.0%.
Personnel
2025 2024 2023
Group employees
on average 4,176 3,850 3,754
at the end of the review
period 3,959 3,810 3,433
in Finland, at the end of the
review period 1,716 1,770 1,767
in North America, at the end
of the review period 579 618 558
in Romania, at the end of the
review period 527 274
Vianor (own) employees, at the
end of the review period 1,387 1,428 1,387
Employee figures are based on the total headcount, including both full-time
and part-time employees. Group-level figures include Vianor, with 48 (33)
seasonal employees at the end of December 2025.
Salaries, incentives, and other related costs in 2025 were EUR
275.3 million (2024: 256.3; 2023: 232.2).
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.
23
Financial
Statements
Remuneration
Report
Sustainability
Statement
Corporate Governance
Statement
Year 2025
Report by the
Board of Directors
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 2025, 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 2025 totaled EUR 26.2 million
(2024: 24.8; 2023: 24.3), which is 11.1% (2024: 10.7%; 2023: 11.6%)
of the operating expenses.
Business unit reviews
Passenger Car Tyres
EUR million 2025 2024
Net sales 858.4 779.9
Net sales change, % 10.1% 19.4%
Net sales change in comparable
currencies, % 11.5% 20.2%
Operating profit 28.3 -15.6
Operating profit, % 3.3% -2.0%
Segment operating profit 80.9 52.2
Segment operating profit, % 9.4% 6.7%
In 2025, net sales of Passenger Car Tyres totaled EUR 858.4
million (779.9). With comparable currencies, net sales increased
by 11.5%.
The share of sales volume of winter tires was 58% (55%), the
share of summer tires was 12% (17%), and the share of all-season
tires was 30% (28%).
Operating profit was EUR 28.3 million (-15.6). Segment operating
profit was EUR 80.9 million (52.2). The increase was driven by
price increases and sales volume growth.
To expand its manufacturing footprint and rebuild capacity,
Nokian Tyres has built a new passenger car tire factory in
Romania. The production facility is the world’s first full-scale
zero-CO
2
-emissions (Scope 1 & 2) tire factory. Altogether,
one million tires were delivered in 2025, and the ramp-up will
continue until the full capacity of 6 million tires is reached based
on future demand. There is potential for future expansion at the
site.
During the review period, Nokian Tyres expanded its product
portfolio in the company’s growth regions by launching the
new Nokian Tyres Surpass AS01 UHP all-season tire to the North
American market as well as the Nokian Tyres Seasonproof 2
all-season tire and the Nokian Tyres Powerproof 2 UHP summer
tire to the Central and southern European markets. Nokian Tyres
Hakkapeliitta winter tires and Nokian Tyres Hakka summer tires
received the Key Flag symbol by the Association for Finnish Work
as proof of their Finnish origin.
24
Financial
Statements
Remuneration
Report
Sustainability
Statement
Corporate Governance
Statement
Year 2025
Report by the
Board of Directors
Heavy Tyres
EUR million 2025 2024
Net sales 232.0 235.1
Net sales change, % -1.3% -8.6%
Net sales change in comparable
currencies, % -1.2% -8.0%
Operating profit 24.3 30.0
Operating profit, % 10.5% 12.8%
Segment operating profit 24.3 30.0
Segment operating profit, % 10.5% 12.8%
In 2025, net sales of Heavy Tyres totaled EUR 232.0 million
(235.1). With comparable currencies, net sales decreased by 1.2%
due to lower volume of forestry and agricultural tires.
Operating profit was EUR 24.3 million (30.0). Segment operating
profit was EUR 24.3 million (30.0). The decrease was mainly
caused by weaker product mix and inventory revaluation.
During the review period, Heavy Tyres launched a new-
generation flotation tire, the Nokian Tyres Country King
G2, engineered for the changing needs of agricultural
transportation. New tire sizes were introduced to the Nokian
Tyres Soil King VF product family for demanding agricultural
work as well as to the Nokian Ground Kare tire range for wheeled
excavators and backhoe loaders. In November, Nokian Tyres
was awarded an Agritechnica Innovation Silver Medal for its
next-generation smart tire technology Nokian Tyres Intuitu™ 2.0
Smart Pressure Assistant. The innovation uses tire sensors to
determine the axle load during driving and suggests the correct
tire pressure for use on the road and for working on the field.
Vianor, own operations
EUR million 2025 2024
Net sales 363.8 354.9
Net sales change, % 2.5% 3.2%
Net sales change in comparable
currencies, % 1.6% 3.6%
Operating profit -3.5 -3.8
Operating profit, % -1.0% -1.1%
Segment operating profit -3.5 -3.8
Segment operating profit, % -1.0% -1.1%
Number of own service centers
at period end 170 174
In 2025, net sales of Vianor totaled EUR 363.8 million (354.9).
With comparable currencies, net sales increased by 1.6%.
Operating profit was EUR -3.5 million (-3.8). Segment operating
profit was EUR -3.5 million (-3.8).
At the end of the review period, Vianor had 170 (174) own service
centers in Finland, Sweden and Norway.
25
Financial
Statements
Remuneration
Report
Sustainability
Statement
Corporate Governance
Statement
Year 2025
Report by the
Board of Directors
Segments Total to Nokian Tyres Total reconciliation 2025
In addition to IFRS figures, Nokian Tyres publishes alternative non-IFRS segments figures, which exclude the ramp-up of the US and
Romanian factories and other possible items that are not indicative of the Group’s underlying business performance.
EUR million Net sales Cost of sales SGA
Other operating
income/ expenses
Operating
profit
Financial
income/expenses Taxes
Result for
the period
Segments Total 1,373.6 -1,043.0 -240.2 0.8 91.3 -51.7 -10.5 29.1
US factory ramp-up -5.6 -0.3 -5.9 1.4 -4.5
Romanian factory
preparations -43.7 -2.7 -0.4 -46.9 9.4 -37. 5
Other exclusions -2.7 -2.7 0.6 -2.2
Total non-IFRS
exclusion -49.3 -5.7 -0.4 -55.5 0.0 11.3 -44.1
Nokian Tyres Total 1,373.6 -1,092.3 -245.9 0.4 35.8 -51.7 0.9 -15.0
Shares and shareholders
At the end of December 2025, the number of shares was
138,921,750.
Number of shares (million units)* Dec 31, 2025 Dec 31, 2024
at the end of period 137.88 137.87
in average 137.87 137. 87
in average, diluted 137.87 137.87
*Excluding treasury shares held by EAM NRE1 Holding Oy
Own shares
The company held no treasury shares on December 31, 2025.
Nokian Tyres has an agreement with Allshares Oy concerning the
long-term share-based incentive schemes for key personnel.
Pursuant to the agreement, EAM NRE1 Holding Oy owns Nokian
Tyres’ shares related to the incentive schemes until the shares
are granted to the employees participating in the schemes. On
December 31, 2025, EAM NRE1V Holding Oy held 1,046,507 shares,
reported as treasury shares (December 31, 2024: 1,052,242). The
number of treasury shares corresponded to 0.75% (0.76%) of the
total shares and voting rights in the company.
Trading in shares
A total of 152,692,396 (149,557,916) Nokian Tyres’ shares were
traded in Nasdaq Helsinki in 2025, representing 110% (108%) of
the company’s overall share capital. The average daily volume in
2025 was 611,850 shares (595,848). Nokian Tyres’ shares are also
traded on alternative exchanges.
Nokian Tyres’ share price was EUR 9.46 (7.35) at the end of 2025.
The volume weighted average share price in 2025 was EUR 7.22
(8.24), the highest was EUR 9.49 (9.63) and the lowest was EUR
5.95 (7.07). The company’s market capitalization at the end of
2025 was EUR 1.3 billion (1.0 billion).
At the end of 2025, the company had 98,875 (102,389)
registered shareholders. The percentage of Finnish
shareholders was 78.0% (70.5%), out of which public sector
entities owned 20.3% (18.1%), financial and insurance
corporations 6.1% (4.6%), households 42.2% (38.9%), non-profit
institutions 2.2% (2.1%), and private companies 7.1% (6.8%). The
percentage of non-Finnish holders and foreign shareholders
registered in the nominee register was 22.0% (29.5%).
Major shareholders on December 31, 2025
(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 6,717,384 4.84
3. Ilmarinen Mutual Pension
Insurance Company 4,505,678 3.24
4. Elo Mutual Pension Insurance
Company 1,785,000 1.28
5. Nordea Nordic Small Cap Fund 1,212,160 0.87
6. Nordea Finland Fund 941,795 0.68
7. The State Pension Fund 900,000 0.65
8. Evli Finnish Small Cap Fund 751,354 0.54
9. OP-Henkivakuutus Ltd. 622,192 0.45
10. OP-Finland Index Fund 539,874 0.39
26
Financial
Statements
Remuneration
Report
Sustainability
Statement
Corporate Governance
Statement
Year 2025
Report by the
Board of Directors
Changes in ownership
In 2025, Nokian Tyres plc received 17 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, 2025
(Including own holdings and controlled entities)
Board of Directors
Number
of shares
Jukka Hienonen, Chair 59,625
Elina Björklund, Deputy Chair 8,740
Susanne Hahn, member 17,180
Markus Korsten, member 9,338
Elisa Markula, member 9,152
Antti Mäkinen, member 3,501
Jouko Pölönen, member 42,430
Tota l 149,966
Shares owned by the President and CEO on
December 31, 2025
(Including own holdings and controlled entities)
President and CEO
Number
of shares
Paolo Pompei 11,674
On December 31, 2025, Nokian Tyres’ Board members and the
President and CEO held a total of 161,640 Nokian Tyres shares.
The shares represent 0.12% of the total number of votes.
Shares owned by the Management Team members on
December 31, 2025
(Including own holdings and controlled entities)
Management Team
Number
of shares
Tommi Alhola, Passenger Car Tyres, Central Europe 1,451
Elisa Erkkilä, Legal and Compliance 0
Tron Gulbrandsen, Passenger Car Tyres, Nordics
and Heavy Tyres (interim) 0
Lauri Halme, Vianor 1,765
Jari Huuhtanen, Finance 1,643
Adrian Kaczmarczyk, Operations 3,420
Jukka Kasi, Products and Innovations 48,616
Päivi Leskinen, Human Resources 1,182
Christopher Ostrander, Passenger Car Tyres,
North America 13,400
Tota l 71,477
Managers’ transactions
In 2025, Nokian Tyres announced managers’ transactions
on February 10, February 17 and May 9. The details of the
transactions are available at company.nokiantyres.com/news-
and-media/press-releases.
Dividend
The Annual General Meeting decided on a distribution of
dividend of EUR 0.25 per share. The dividend was paid on May
20, 2025, to shareholders who were registered in the company’s
shareholders’ register maintained by Euroclear Finland Oy on
the dividend record date on May 9, 2025.
Authorizations
The Annual General Meeting authorized the Board of Directors
to decide on the repurchase of a maximum of 13,800,000 of
the company’s own shares, corresponding to approximately
Decisions of the Annual General Meeting 2025
Nokian Tyres’ Annual General Meeting was held on May 7, 2025
at Finlandia Hall in Helsinki, Finland. The Annual General Meeting
approved all proposals made by the Board of Directors and the
Shareholders’ Nomination Board. The details of the decisions
of the Annual General Meeting are available at company.
nokiantyres.com/news-and-media/news-article/decisions-
of-the-annual-general-meeting-of-nokian-tyres-plc.
27
Financial
Statements
Remuneration
Report
Sustainability
Statement
Corporate Governance
Statement
Year 2025
Report by the
Board of Directors
9.9 percent of all shares. The authorization allows for directed
repurchases and the shares may be repurchased using
unrestricted shareholders’ equity at the market price formed in
public trading.
The Annual General Meeting further authorized the Board
of Directors to decide on the issuance of shares and of
special rights entitling to shares, in one or several tranches,
of a maximum of 13,800,000 shares, corresponding to
approximately 9.9 percent of all shares.
The Annual General Meeting also authorized Board of Directors
to decide 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.
All authorizations remain in effect until the next Annual General
Meeting, however at the latest until June 30, 2026. The Board
had not used these authorizations by the end of 2025.
Composition of the committees of the Board of
Directors
In its organizing meeting on May 7, 2025, the Board of Directors
elected:
• Jouko Pölönen as the Chair and Elisa Markula and Antti
Mäkinen as members of the Audit Committee
• Elina Björklund as the Chair and Susanne Hahn and Jukka
Hienonen as members of the People and Sustainability
Committee
• Christopher Ostrander as the Chair and Markus Korsten and
Jukka Hienonen as members of the Investment Committee.
On August 29, 2025, Christopher Ostrander resigned from
the Board of Directors. The Board of Directors elected Elina
Björklund as a new member of the Investment Committee.
Markus Korsten was elected as the Chair of the Committee and
Jukka Hienonen continues as a member of the Committee.
Shareholders’ nomination board
In June 2025, the following members were appointed to Nokian
Tyres’ Shareholders’ Nomination Board:
• Mr. Petter Söderström (Investment Director, Solidium Oy),
appointed by Solidium Oy
• Mr. Mikko Mursula (CEO, Ilmarinen Mutual Pension Insurance
Company), appointed by Ilmarinen Mutual Pension Insurance
Company
• Mr. Timo Sallinen (Director, Head of Listed Securities, Varma
Mutual Pension Insurance Company), appointed by Varma
Mutual Pension Insurance Company
• Mrs. Jonna Ryhänen (Chief Investment Officer and Deputy
CEO, Elo Mutual Pension Insurance Company), appointed by
Elo Mutual Pension Insurance Company
• Mr. Jukka Hienonen, Chair of the Board of Directors,
Nokian Tyres plc
Changes in the Board of Directors and Management
Paolo Pompei started as Nokian Tyres’ President and CEO on
January 1, 2025.
In February 2025, Nokian Tyres announced changes to its
Management Team to increase consumer focus, global
synergies and operational excellence. New members joining
the Management Team were Tommi Alhola (Passenger Car
Tyres, Central Europe) and Lauri Halme (Passenger Car Tyres,
North America). The new Management Team structure enables
a dedicated focus on Nokian Tyres’ growth regions to achieve
the company’s financial targets. As part of the organizational
changes, the company reorganized all manufacturing
facilities under one leadership and combined Marketing and
Communications in one strategic global function.
In May 2025, Nokian Tyres announced that Niko Haavisto, Nokian
Tyres CFO and member of the Management Team, had decided
to leave the company. Jari Huuhtanen, VP, Group Business
Control, was appointed interim CFO as of June 1, 2025.
Further leadership changes were announced in July 2025, and
became effective as of September 1, 2025, reflecting Nokian
Tyres’ sharpened commercial focus and commitment to
strategic growth:
• Christopher Ostrander was appointed SVP, Passenger Car
Tyres, North America and a member of the Nokian Tyres
Management Team.
• Lauri Halme was appointed SVP, Vianor, continuing as a
member of the Nokian Tyres Management Team.
• Tron Gulbrandsen was appointed SVP, Passenger Car Tyres,
Nordics, and a member of the Nokian Tyres Management
Team.
Due to his appointment to Nokian Tyres SVP, Passenger Car
Tyres, North America, Christopher Ostrander resigned from
the Board of Directors on August 29, 2025. After Ostrander’s
resignation Nokian Tyres Board of Directors comprises seven
members.
Manu Salmi, EVP, Heavy Tyres; SVP, Manufacturing (interim),
and a member of the Management Team left the company on
September 17, 2025. His responsibilities were reassigned on
an interim basis through internal arrangements reporting to
President and CEO Paolo Pompei (Manufacturing) and Tron
Gulbrandsen (Heavy Tyres).
Corporate sustainability
In February 2025, 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 fifth consecutive year that
Nokian Tyres has received an A- for its climate work.
In February 2025, Nokian Tyres’ factory in Oradea, Romania
obtained the International Sustainability and Carbon
Certification (ISCC) PLUS. With the certification, Nokian Tyres
is able to utilize sustainable, ISCC PLUS certified raw materials
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in its tires. Using certified materials supports the company in
reaching one of its key sustainability goals, which is to increase
the share of recycled or renewable raw materials in its tires to
50 percent by 2030. Nokian Tyres’ passenger car tire factory in
Nokia, Finland obtained the ISCC PLUS certification in 2024.
In February 2025, Nokian Tyres announced that it is to lead
the five-year-long FUTUREPROOF research, development and
innovation program to confront the key challenges of future
mobility. The FUTUREPROOF ecosystem is aiming to involve over
100 partners. In the program, Nokian Tyres and the ecosystem
partners will tackle issues such as improving the safety and
sustainability of Finnish and European mobility, reducing
emissions throughout the entire supply chain, developing
advanced driving solutions and accelerating the implementation
of Industry 5.0.
In March 2025, Nokian Tyres launched the new Nokian Tyres
Seasonproof 2 all-season tire range that contains up to 38% of
renewable, recycled and ISCC PLUS certified materials. It is the
company’s first tire in commercial production with such a high
share of renewable and recycled materials. For example, the
resin and silica used in the tire are from renewable resources.
Recycled materials include carbon black and steel.
In March 2025, Nokian Tyres published the Sustainability
Statement as part of the 2024 Report by the Board of Directors.
The Sustainability Statement was prepared in accordance
with the Corporate Sustainability Reporting Directive, and it is
available at company.nokiantyres.com/investors/reports-
and-presentations.
In June 2025, Nokian Tyres was recognized by TIME magazine as
one of the world’s most sustainable companies. Nokian Tyres
was ranked 98th on the list that includes 500 companies around
the globe with outstanding commitment to environmental and
social responsibility.
Long-term share-based incentive schemes
Commencement of new plan periods
In February 2025, the Board of Directors approved the
commencement of a new plan 2025–2027 of the Restricted
Share Plan (“RSP”). RSP scheme serves as a complementary
long-term incentive tool, used selectively for retention of
Nokian Tyres key employees.
RSP 2025–2027 includes a three-year restriction period, with
potential rewards delivered in 2028 in shares of Nokian Tyres.
The aggregate number of shares to be paid based on RSP
2025–2027 is a maximum of 120,000 shares.
In May 2025, the Board of Directors approved the
commencement of a new plan 2025–2026 of the Performance
Share Plan (“PSP”). PSP is a long-term incentive tool, used
selectively for retention of Nokian Tyres key employees.
PSP 2025–2026 includes a two-year performance period, and
one year restriction period (2027). The performance targets
are average earnings per share (EPS), average return on capital
employed (ROCE%) and reduction of Scope 1 & 2 CO
2
emission
intensity. Subject to achieving the performance targets,
share rewards will be delivered in spring 2028. The aggregate
maximum number of shares to be paid based on PSP 2025–2026
is 1,657,000 shares. The reward will be paid in shares of Nokian
Tyres. Number of participants included in PSP 2025–2026 is 85.
Payments for share-based plans that ended in 2024
The Board of Directors made the following decisions concerning
share-based rewards payable under the long-term incentive
schemes:
• PSP 2022–2024: No share-based rewards were paid under the
plan as the targets were not reached.
• RSP 2022–2024: In total 11,500 shares of the company
were granted without consideration to key employees in
accordance with the terms and conditions of the plan. The
shares were acquired from the market on behalf of the
recipients. The transfers took place on March 6, 2025 (5,500
shares) and on August 6, 2025 (6,000 shares).
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. International
tensions and increasing global uncertainty may lead to economic
recession, create trade barriers such as tariffs, 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. Creating a balanced manufacturing platform.
Acting in accordance with the contingency plan.
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Changes in consumer behavior
The weakening of consumer confidence has shifted demand
towards more affordable products and delayed purchase
decisions. 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. Continuously monitoring markets and consumer
needs to anticipate consumer preferences. Sufficient resources
for product testing. Developing distribution channels and
network.
Production and commercial operations in Europe
To ensure tire availability, Nokian Tyres is investing in new zero-
CO
2
-emissions (Scope 1 & 2) production capacity in Romania.
While commercial production has commenced as planned,
temporary delays in ramping up production processes or
challenges related to commercial execution in a competitive
market may negatively impact Nokian Tyres’ financial
performance and growth opportunities, especially in Central
Europe.
Risk mitigation measures: close monitoring of the ramp-up,
markets and consumer needs. 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 krona, the Norwegian krone, the US and Canadian
dollars and the Romanian leu. Approximately 60 percent of the
Group’s sales are generated outside the euro-zone. The most
significant net investments in foreign operations are in the
US and Romania. A weakening of the US dollar benefits Nokian
Tyres in currency transactions due to its net-buy position, but it
has a negative impact through translation exposure. The impact
of fluctuations in the Romanian leu primarily arises through
translation exposure. Expenses in the Swedish, Norwegian,
and Canadian subsidiaries are predominantly incurred in local
currencies, which mitigates the impact of currency fluctuation
on sales denominated in those currencies.
Risk mitigation measures: hedging against the effects of
exchange rate fluctuations according to the hedging strategy.
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
Ensuring 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 placing additional requirements
to 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.
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Risk mitigation measures: strong commitment to achieving ESG
targets. Development and implementation of internal guidance,
processes and training to ensure compliance. Active monitoring
of upcoming laws and regulations. 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 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 annually from its operations to combat climate
change.
Risk mitigation measures: increasing use of recyclable and
renewable raw materials to cut GHG emissions and other
environmental impacts. Membership in industry associations
helps identify new sustainable product development and
business opportunities.
Employee retention and competence
Nokian Tyres’ success relies 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 up-to-date work tools and competitive
salaries and other benefits. Providing opportunities for
career development. 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.
In May 2017, the Finnish Financial Supervisory Authority filed
a request for investigation into possible securities market
offences relating to alleged malpractices in magazine tests
by Nokian Tyres. In October 2020 charges were filed against
Nokian Tyres, its President and CEO and six Directors who
served on the Board of Directors in 2015–2016, for securities
market information offence. In addition, four employees of the
company were charged with misuse of inside information. The
District Court of Helsinki dismissed all charges in 2022. After an
appeal, the Court of Appeal dismissed the charges against the
company’s former Directors. The former President and CEO was
sentenced to a fine for a securities market information offence
and the employees were sentenced to a fine or suspended
imprisonment for misuse of inside information. The company
was fined EUR 50,000 but was not found to have engaged in
malpractices in magazine tests as alleged in the charges. The
company decided not to apply for the leave.
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 review period
On February 10, 2026, Nokian Tyres published its updated
strategy and financial targets extending until the end of 2029.
Further information is available on a stock exchange release
available at company.nokiantyres.com/investors/.
The updated targets are:
• Net sales EUR 1.8–2.0 billion
• Segments EBITDA >24%
• Segments operating profit >15%
• Net debt/Segments EBITDA <2
Nokian Tyres’ dividend policy remains unchanged. Nokian Tyres’
target is to pay a dividend of at least 50% of its net earnings.
On January 14, 2026, Timo Koponen was appointed Nokian Tyres
CFO and a member of the Management team. He will start in the
position by April 15, 2026.
Guidance for 2026
In 2026, Nokian Tyres’ net sales are expected to grow compared
to the previous year and segments operating profit as a
percentage of net sales to be 8–10%.
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Assumptions for 2026
Tire demand in Nokian Tyres’ markets is expected to remain flat
in 2026. Development of global economy as well as geopolitical,
trade and tariff uncertainties may cause volatility to the
company’s business environment. Nokian Tyres’ profitability
improvement is supported by new high-performing products,
price/mix and efficiency improvements.
The proposal for the use of profits by the Board
of Directors
The distributable funds in the Parent company total EUR 742.6
million.
The Board of Directors proposes to the 2026 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 708.1 million
Total EUR 742.6 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 March 27, 2026. The payment
date proposed by the Board of Directors is April 15, 2026.
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 2026 Annual General Meeting will be published on
February 10, 2026.
Corporate Governance Statement, Remuneration
Report and Sustainability Statement
Nokian Tyres will publish the Corporate Governance
Statement and the Sustainability Statement as part of the
2025 Report by the Board of Directors on its website at
company.nokiantyres.com during the week commencing
March 2, 2026.
The Remuneration Report will be published on the website
at company.nokiantyres.com during the week commencing
March 2, 2026.
Helsinki, February 10, 2026
Nokian Tyres plc
Board of Directors
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Figures in EUR million unless otherwise indicated
2025 2024 2023*
2022 2021 2020 2019 2018 2017 2016
Net sales 1,373.6 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
change, % 6.5% 9.9% -13.1% -21.2%* 30.5% -17.1% 0.0% 1.5% 13.0% 2.3%
Operating margin (EBITDA)
1
178.1 126.0 147.0 170.2* 425.6 275.9 441.7 465.8 463.7 395.2
Depreciation and amortization 142.2 124.2 114.9 110.1* 140.5 131.0 125.2 93.4 98.3 84.7
Impairments
2
- - - 3.4* 17.0 24.9
Operating profit (EBIT) 35.8 1.8 32.1 56.7* 268.2 120.0 316.5 372.4 365.4 310.5
% of net sales 2.6% 0.1% 2.7% 4. 2%* 15.6% 9.1% 19.8% 23.3% 23.2% 22.3%
Profit before tax -15.9 -31.5 14.2 11.2* 258.2 106.0 336.7 361.7 332.4 298.7
% of net sales -1.2% -2.4% 1.2% 0.0* 15.1% 8.1% 21.1% 22.7% 21.1% 21.5%
Return on equity, % -1.2% -1.7% -23.4% -11. 5%* 13.1% 5.2% 24.6% 20.0% 15.1% 18.7%
Return on capital employed, % 1.9% 0.5% 2.2% 3.1% 13.7% 6.0% 17.6% 23.3% 22.4% 19.9%
Total assets 2,313.8 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
Interest-bearing net debt 664.0 613.1 223.6 140.9 -98.7 -17.2 41.1 -315.2 -208.3 -287.4
Equity ratio, % 50.3% 52.5% 58.0% 64.9% 68.4% 65.3% 75.9% 71.0% 78.2% 73.8%
Gearing, % 57.0% 48.2% 16.6% 9.8% -6.1% -1.1% 2.3% -21.2% -14.2% -19.7%
Net cash from operating activities 146.2 77.4 82.4 -4.3 396.5 422.4 219.8 536.9 234.6 364.4
Capital expenditure 126.9 350.1 252.1 129.7 119.6 149.9 290.1 226.5 134.9 105.6
% of net sales 9.2% 27.1% 21.5% 9.6% 7.0% 11.4% 18.3% 14.2% 8.6% 7.6%
R&D expenditure 26.2 24.8 24.3 29.6 31.9 22.7 22.7 20.8 21.8 20.3
% of net sales 1.9% 1.9% 2.1% 2.2% 1.9% 1.7% 1.3% 1.3% 1.4% 1.5%
Dividends 34.5
3
34.5 75.8 76.0 76.0 165.9 158.4 218.1 214.2 208.0
Personnel, average during the year 4,176 3,850 3,754 3,517* 4,941 4,859 4,942 4,790 4,630 4,433
*The figures for years 2023 and 2022 are comparable 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
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2025 2024 2023
2022 2021 2020 2019 2018 2017 2016
Earnings per share, EUR -0.11 -0.17 -2.36 -1.27 1.49 0.62 2.89 2.15 1.63 1.87
change, % -34.3% -93.0% 85.8% -185.1% 140.2% -78. 5% 78.1% 32.4% -13.0% 3.6%
Earnings per share (diluted), EUR -0.11 -0.17 -2.36 -1.27 1.49 0.62 2.89 2.14 1.61 1.86
change, % -34.3% -93.0% 85.8% -185.1% 140.2% -78. 5% 35.2% 32.5% -13.2% 3.2%
Earnings per share continuing operations, EUR -0.11 -0.17 0.09 0.11
change, % -34.3% -282.8% -17.9% 0.0%
Earnings per share discontinued operations, EUR - - -2.45 -1.38
change, % - -100.0% 7 7.5% 0.00%
Cash flow per share, EUR 1.06 0.56 0.60 -0.03 2.87 3.05 3.89 3.91 1.72 2.70
change, % 88.9% -6.0% -2020.0% -101.1% -6.0% -21.5% -0.7% 127.2% -36.3% 27.4%
Dividend per share, EUR 0.25 0.25 0.55 0.55 0.55 1.20 1.14 1.58 1.56 1.53
Dividend pay out ratio, %
-229.6% -150.9% -23.3% -43.3% 88.5% 192.9% 39.5% 73.9% 96.7% 82.6%
Equity per share, EUR 8.44 9.23 9.77 10.37 11.78 11.01 12.76 10.79 10.74 10.75
P/E ratio -86.9 -44.4 -3.5 -7. 5 22.3 46.4 8.9 12.5 23.3 19.0
Dividend yield, %
2.6% 3.4% 6.7% 5.7% 4.0% 4.2% 4.5% 5.9% 4.1% 4.3%
Market capitalisation Dec 31 1,314.9 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
Number of shares during the year, average,
million units 137.87 13 7.87 137.98 138.25 138.22 138.46 138.17 137. 26 136.25 134.86
diluted, million units 137.87 13 7.87 137.98 138.25 138.22 138.46 138.38 138.14 137.28 135.56
Number of shares Dec 31, million units 137.88 137.87 137. 87 138.25 138.22 138.22 138.72 137.79 136.75 135.68
Number of shares entitled to a dividend,
million units 137.88 137.87 137. 87 138.25 138.22 138.22 138.92 138.07 137. 28 135.93
Per share data
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Formulas for the key financial indicators
Return on equity, % =
Profit for the period x 100
Total equity (average)
Return on capital
employed, % =
Profit before tax + interes t 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 pay-out 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
Definitions
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THE LATITUDE OF
VIANOR TROMSØ
IN NORWAY
69°38′56″ N
SUSTAINABILITY
STATEMENT
General information 37
Environmental information 62
Social information 96
Governance information 125
ESRS content index 130
Additional sustainability disclosures 140
GENERAL
INFORMATION
ESRS 2 General disclosures 38
ESRS 2 General
disclosures
GENERAL INFORMATION
Nokian Tyres has been a member of the UN Global Compact
since 2015. The UN’s 17 Sustainable Development Goals
(SDGs) were created to promote prosperity while protecting
the environment, and the goals provide a tool to examine
sustainable business in the long term. Nokian Tyres has
determined seven SDGs that are important for the company.
Nokian Tyres will evaluate its non-financial targets in 2026.
Topic Target Status at the end of 2025
E1 Climate change
• Near-term climate targets for 2030 and net-zero targets for 2050, approved by
the Science Based Targets initiative*
Proceeding as planned
• At least 60 products in the best rolling resistance A class by 2028 13 products in A class
E2 Pollution
• No substances of very high concern (SVHC) in products Achieved
• Two audits by chemical specialists at all Nokian Tyres’ tire factories each year to
ensure chemical and environmental safety
Partly achieved
• VOC emissions under the limits defined in permits Achieved
• Particle emissions from tire factories under the limits defined in permits Achieved
• No accidental discharges from factories into water or soil Achieved
E4 Biodiversity and
ecosystems
• Maintain the status that 100 percent of natural rubber processor suppliers are
either GPSNR members or signed Nokian Tyres sustainability commitment
Achieved
E5 Resource use and
circular economy
• Increase the share of renewable and recycled raw materials in tires to 50 percent
by 2030*
28.3 percent
• Ensure that 100 percent of tire production waste continues to be utilized Achieved
S1 Own 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
Attendance: 30 percent
• Improve job rotation, such as percentage of transfers and promotions, base
measured in 2025
Base: 16 percent
• Continuous improvement of the sentiment of equal opportunities, related to
personnel survey question “Regardless of background, everyone at our company
has an equal opportunity to succeed”, baseline 2021: 65
64
• Decrease lost-time incident frequency (LTIF) from 8.3 (2018) to 1.5 by 2025* Not achieved; LTIF: 3.7
S2 Workers in the
value chain
• Uphold the status of having 100 percent of sustainability high-risk suppliers
audited by performing at least five sustainability audits*
Achieved
• Ensure that 100 percent of natural rubber processor suppliers continue to be
either Global Platform for Sustainable Natural Rubber (GPSNR) members or signed
Nokian Tyres sustainability commitment
Achieved
S4 Consumers and end
users
• Ensure that 100 percent of premium passenger car tires in the selected scope
continue to 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
Achieved
* Non-financial targets confirmed together with the financial targets.
Sustainability is a part of Nokian Tyres’ culture,
strategy, and goals. The company’s sustainability
work is based on commitments, stakeholder
dialogue, and the ambition to be a leader in
sustainability. Daily work is guided by different
standards and policies.
Nokian Tyres' targets handled in this report
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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 company 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.
The Statement also includes information about the upstream
and downstream value chain related to the relevant material
impacts, risks, and opportunities identified in the double
materiality assessment. Selected policies, actions, and targets
extend to the value chain as well.
Nokian Tyres has exercised the option to omit sensitive
information concerning its manufacturing partners and specific
datapoints 31 a and 31 c of the disclosure requirement E5-4.
BP-2 Disclosures in relation to specific
circumstances
Time horizons
Reporting complies with the medium- or long-term time
horizons defined by ESRS 1 section 6.4.
Value chain estimation
Several estimations are used in the calculation of Scope 3
emissions data, including, for example, the use of general
emissions factors and averages. This affects the accuracy of
calculations. The calculation principles are based on Nokian
Tyres’ GHG inventory, and they are presented in more detail
under the disclosure requirement E1-6.
To enhance data quality, Nokian Tyres increasingly sources
emissions data directly from raw material suppliers and
transport companies, replacing generic emissions factors with
actual figures in its calculations.
Sources of estimation and outcome uncertainty
All sources of estimation with a high level of measurement
uncertainty are related to value chain emissions.
Changes in preparation or presentation of sustainability
information
In 2025, the calculation of Scope 1 and 2 emissions improved,
as some estimates were more precise due to better data
availability. Find more information about this under E1-6.
Compared to 2024, there has been a change in the calculation
method for the amounts of chemicals reported under the
disclosure requirement E2-5. The calculation method has been
improved after consulting chemical experts, and restated
figures for 2024 are available in the table “Substances of
concern in 2025, main hazard classes”.
Reporting errors in prior periods
There was a human error in 2024 reporting of substances of
concern under the disclosure requirement E2-5. The amounts of
chemicals were reported under the wrong hazard classes, and
one column in the table also had a wrong header. Thus, all data
from 2024 has been restated.
Under S1-14, there was also a human error in reporting the
number of cases of recordable work-related ill health of
employees.
Disclosures stemming from other legislation or
sustainability reporting pronouncements
The Statement 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 information”. 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 section “Additional
sustainability disclosures”.
Incorporation by reference
There are no disclosures incorporated by reference. However,
matters related to strategy and business model, risk
management and internal controls, and remuneration are
elaborated further in other parts of the Report by the Board of
Directors and Remuneration Report.
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Use of phase-in provisions
Nokian Tyres has used phase-in provisions regarding information
related to ESRS sectors (SBM-1 40 b and c), information on
anticipated financial effects (SBM-3 48 e, E1-9, E2-6, E4-6, and
E5-6), disclosure requirement S1-12, and datapoint S1-15 93 b.
GOV-1 Sustainability governance at Nokian Tyres
The Board of Directors is responsible for the corporate
governance 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 and guidelines of
the Board of Directors.
At the end of 2025, there were seven non-executive members in
the Board of Directors. There was no employee representation
on the Board of Directors. The President and CEO was an
executive director.
The members of the Board of Directors have relevant
experience in the following: CEO experience, international
experience especially in the Nordic, Central European and
North American markets, tire industry, consumer goods
industry, financing, corporate risk management, and corporate
governance.
At the end of 2025, the Board of Directors had four male
(57.1%) and three female members (42.8%) and two different
nationalities. The age range was between 49–64 years. The
President and CEO was male and held Italian citizenship. The
members of the Board of Directors and the President and CEO
showed diversity in the following aspects:
Diversity factors Details
Age
Under 30 years old: 0%
30–50 years old: 12.5%
Over 50 years old: 87.5%
Gender
Female: 37.5%
Male: 62.5%
Nationality
Finnish: 62.5%
German: 25%
Italian: 12.5%
Expertise
Expertise in the tire industry: 25%
CEO experience: 100%
Leadership experience: 100%
Education
M.Sc. in Economics: 75%
MBA: 12.5%
Dipl. Ing. in Physics: 12.5%
Master of Laws: 12.5%
All members of the Board of Directors were independent of the
company and of all major shareholders in the company; however,
Antti Mäkinen was deemed independent of Solidium Oy starting
from June 1, 2025.
The Board of Directors is the highest body overseeing
sustainability, including the impacts, risks and opportunities.
The Board of Directors approves the key targets as well as
the company’s policies guiding the company’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.
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
President, Operations, 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 Operations, Products &
Innovations, Legal & Compliance, 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
GHG Steering Group comprises of senior representatives from
Operations, Production, Products & Innovations, Production
Technology, and Procurement. The duties of all supervisors
include day-to-day leadership of sustainability.
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Managing sustainability at Nokian Tyres
Board of Directors
Highest body overseeing sustainability, including material impacts, risks and opportunities
Approves the key sustainability targets
Approves the group’s key policies
People and Sustainability Committee
Prepares sustainability topics for the Board of Directors
Monitors developments in the operating environment and regulation relating to sustainability
Oversight
Group Management Team
SVP, Operations
Leads sustainability work
Sustainability Steering Group
Supervises and monitors sustainability work
Greenhouse Gas Steering Group
Supervises and monitors the progress in
reducing greenhouse gas emissions according
to the climate transition plan
Accountability
All units and supervisors
Personnel
Local implementation
(BA/BU)
VP, Quality and Sustainability
Drives the implementation of sustainability strategy and actions
Leads the work of subject matter experts
Sustainability
working
group
Safety
management
working group
Environmental
working
group
Energy efficiency
working
group
Sustainable
purchasing
working group
Corporate
implementation
Decisions Reporting and recommendations
Decisions Reporting and recommendations
Decisions and recommendations Continuous dialog
Sustainability matters are reported to the PSC. The PSC
regularly reviews the progress of the company’s sustainability
program with management and oversees the sustainability
reporting process.
The Board of Directors brings relevant expertise in leadership,
strategy development and execution, governance, risk
management, remuneration, communications, and stakeholder
relations. These competencies support the systematic and
successful development and implementation of the company’s
sustainability program.
Committee work within the Board of Directors enables deeper
sustainability expertise. Internal and external sustainability
professionals may be invited to speak at committee meetings,
and topic-specific presentations and trainings are organized as
needed, including on material topics.
As for business conduct, the Board of Directors is responsible
for Nokian Tyres’ corporate governance and the organization
of its operations 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 company’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.
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The President and CEO is responsible for implementing
the approved strategy and plans, ensuring the company’s
bookkeeping complies with legal requirements, and arranging
reliable asset management.
The Board of Directors and the President and CEO have
expertise in areas such as strategic leadership, tire industry,
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 Board of Directors’ People and Sustainability Committee
(PSC) is tasked to assist the Board of Directors by reviewing
and preparing sustainability matters for the Board of Directors.
The PSC’s key responsibilities include reviewing and preparing
sustainability plans and results, monitoring the company’s
double materiality assessment, and ensuring the integrity of
sustainability reporting through assurance processes. The PSC
keeps track of developments in the operating environment
and regulations related to sustainability reporting, as well as
reviews relevant policies and procedures. The effectiveness
of the company’s internal control and risk management
systems regarding sustainability reporting are also monitored.
Lastly, monitoring employee well-being, health, safety, and
the development of diversity within the work community are
essential aspects of the PSC’s sustainability management.
To maintain regular information flow, sustainability matters
are regularly included in the agenda of the PSC meetings. The
Vice President, Quality and Sustainability reports sustainability
matters to the PSC two to four times a year or as needed.
In 2025, the Board of Directors approved the results of the
double materiality analysis and reviewed key impacts, risks,
and opportunities. Updates of the planned and ongoing key
sustainability actions were presented to them as well.
After the end of the reporting period, the Board of Directors
approved Nokian Tyres’ climate transition plan to address
greenhouse gas emissions.
Nokian Tyres adheres to an Enterprise Risk Management (ERM)
Policy that applies across all group companies and functions,
ensuring that risks and opportunities are systematically
identified, assessed, and managed at every organizational
level. The ERM framework is integrated into the company’s
overall management and internal control system to minimize
adverse impacts and leverage opportunities. The Board of
Directors and its Committees discuss the most significant
sustainability risks and opportunities, risk appetite, and related
measures in connection with the strategy process and decisions
related to business objectives and major investments. Material
sustainability-related risks presented to the Board of Directors
during the 2025 strategy process were in line with the double
materiality assessment results.
GOV-3 Integrating sustainability-related
performance in incentive schemes
Nokian Tyres Remuneration Policy outlines the compensation
framework for both the Board of Directors and the President
and CEO. This policy was approved at the Annual General
Meeting in 2024. The Board of Directors is responsible for
supervising the company’s remuneration practices – including
sustainability-related incentives – and for approving the
remuneration for the President and CEO and the Management
Team.
The Remuneration Policy links sustainability-related
performance measurements with the company’s incentive
schemes. This integration ensures that management’s
remuneration is partly based on achieving sustainability targets,
aligning the interests of management, the company, and its
stakeholders.
Nokian Tyres operates several incentive plans, both short-
and long-term, with a clear focus on sustainable value
creation. The company’s main long-term incentive plan, the
Performance Share Plan, uses performance criteria that include
a sustainability-related goal. The reduction of Scope 1 and 2
carbon dioxide equivalent (CO
2
e) emissions carries 10
percent weight of the total of 100 percent target setting within
long-term incentives, underlining its importance in the overall
evaluation.
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GOV-4 Statement on due diligence
Nokian Tyres’ due diligence processes cover environmental and
social responsibility as well as business conduct matters. The
due diligence processes are aligned with regulations and the
company’s commitments to international frameworks, such as
Core elements of due diligence Location in the Sustainability Statement
a) Embedding due diligence in governance,
strategy and business model
Nokian Tyres’ human rights and environmental experts have defined the company’s due
diligence process and oversee its integration across the company’s operations.
GOV-1, E1-2, E2-1, E4-2, E5-1, S1 SBM-3, S1-1, S2 SBM-3, S2-1, S4 SBM-3, S4-1, G1-1, G1-2
b) Engaging with affected stakeholders in all key
steps of the due diligence
Nokian Tyres maintains continuous dialogue with its employees. The company engages
with value chain workers during sustainability audits and through industry associations.
Consumers’ and end users’ views are heard through Nokian Tyres’ customers, Vianor,
and different communication channels. ESRS 2 SBM-2, S1-2, S2-2, S4-2
c) Identifying and assessing adverse impacts
Nokian Tyres’ double materiality assessment identifies material adverse impacts in the
company’s operations and value chain. Also systematic impact and risk assessments are
conducted. IRO-1, E4 SBM-3, S2-1
d) Taking actions to address those adverse
impacts
Nokian Tyres addresses material impacts identified in the DMA and also collaborates
with suppliers, industry associations, and other stakeholders for continuos
improvement. E1-1, E1-3, E2-2, E4-3, E5-2, S1-4, S2-4, S4-4
e) Tracking the effectiveness of these efforts and
communicating
Nokian Tyres reports on key metrics and works to increase the natural rubber supply
chain traceability. E1-6, E2-3, E4-4, E5-3, S1-5, S2-4, S2-5
the United Nations Guiding Principles on Business and Human
Rights and the OECD Guidelines for Multinational Enterprises.
The following table provides an overview of the information
related to the due diligence processes in this Sustainability
Statement.
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. At Nokian Tyres, a risk is defined as an
uncertain event and its consequences, caused by an external or
internal factors, which may be either a threat or an opportunity.
Risk assessment is a continuous process of identifying,
assessing, controlling, and monitoring risks. 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 continued in 2025. This included
reassessment of existing controls and identification of
additional controls within the processes. Based on the
outcomes of the evaluation, data-owning functions improved
internal processes and reporting practices.
The main risks identified in sustainability reporting relate
to the accuracy and completeness of certain metrics as the
reporting is based on multiple data sources, including manual
inputs and calculations. To mitigate these risks, Nokian Tyres
has implemented several targeted measures to strengthen
its internal control environment. These include clearly defined
roles and responsibilities, systematic data collection and
reconciliations at critical reporting stages, segregation of
duties, and both quantitative and qualitative data reviews
by data owning functions, the Vice President, Quality and
Sustainability, Sustainability Steering Group, and the People and
Sustainability Committee.
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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 2025, Nokian Tyres’ products were sold in 47 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.
At the end of 2025, Nokian Tyres employed 3,959 people, of
which 2,659 in the Nordic countries, 579 in North America, and
721 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 as defined by the REACH regulation
• Increase the share of renewable or recycled raw materials in
tires to 50 percent by 2030
• Increase the number of products in the best rolling
resistance A class to (at least) 60 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 2025, Nokian Tyres’ tires did not contain Substances of
Very High Concern. The share of renewable and recycled raw
materials was 28.3 percent at the end of 2025. There were 13
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 3.7 (4.6) but the target was not achieved.
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 has built a new passenger car tire factory in
Romania to expand its manufacturing footprint and rebuild
capacity. The first tires were delivered from the factory
to Nokian Tyres’ distribution centers in March 2025, and
commercial tire deliveries started in the second quarter. The
production facility is the first full-scale zero-CO
2
e-emissions
(Scope 1 & 2) 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.
The annual risk review, including sustainability risks and
opportunities, is integrated into strategy work, the results of
which are presented to the Board of Directors.
Nokian Tyres’ business model and value chain
Nokian Tyres operates in the passenger car tire replacement
market, particularly excelling in the premium winter tire
segment. Nokian Tyres’ heavy tires are sold in both the original
equipment and replacement markets. 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, all-
season, and all-weather 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 with factories
located in Nokia, Finland, Oradea, Romania, and Dayton,
US. 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 carefully selected
manufacturing partners.
• Vianor is the largest car maintenance and tire service chain in
the Nordic countries with a wide network of service centers
and online stores. It supports sales and the premium brand
position in the Nordic countries.
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Nokian Tyres’ value chain
Benefits and value created through responsible business practices, innovative tire solutions, and collaborative company culture
Nokian Tyres has over 3,700 suppliers
worldwide, including more than 200
different raw material suppliers. The
main raw material groups in tire man
-
ufacturing are synthetic rubber, fillers,
chemicals, reinforcing materials, and
natural rubber. Another important
input is energy for the tire manufac
-
turing process and facilities.
Nokian Tyres aims to be a trusted part
-
ner and a sustainability benchmark in
the industry. This can only be achieved
by having a network of responsible
suppliers. 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 and requires that all
sustainability critical ones adhere to
the Supplier Code of Conduct. Sup
-
plier sustainability audits have been
conducted since 2016, and all sustain
-
ability high-risk suppliers have been
audited.
Nokian Tyres uses carefully selected
manufacturing partners to comple
-
ment own production. Vianor also
imports tires to the Nordics.
Suppliers
Nokian Tyres has over 90 years of experience
in vehicle tires as the world’s northernmost tire
company, with numerous trademarks and patents.
Nokian Tyres develops and manufactures pre-
mium tires for passenger cars, trucks, and heavy
machinery.
The three tire factories are located in Finland, Roma-
nia, and the US, and there is also a wheel factory in
Finland. The factory in Romania is the world’s first
full-scale zero-CO
2
-emissions (Scope 1 & 2) tire fac-
tory. All factories are ISO 14001 and ISO 9001 certi-
fied, and the tire factories in Finland and the US are
ISO 45001 certified. Of the three test centers, two
are located in Finland and one in Spain. In addition,
there are sales companies in the key markets.
The main subsidiary Vianor offers tire and car ser-
vices and also operates five retreading plants in
Finland, Sweden and Norway.
Nokian Tyres’ business is guided by the ethical
principles presented in the Code of Conduct.
Approximately 4,000 highly skilled professionals
contribute to continuous development with their
competence and ideas. The company culture is
based on three key values: we care, drive innova-
tion, and succeed together. Nokian Tyres promotes
equal opportunities and fair treatment, occupa-
tional safety, collaboration and continuous learn-
ing, and employee well-being.
Group operations
From Nokian Tyres’ logistics centers, the tires are transported to ware-
houses by land and sea.
Nokian Tyres’ main market areas are the Nordic countries, Central Europe, and
North America. The products are sold to consumers and 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 47 countries.
Distribution
Nokian Tyres innovative, high-quality products are tailored for different
markets, with a strong focus on safety and performance to ensure consum-
ers’ and end users’ safe trips under all conditions. Sustainability is consid-
ered all the way from raw material procurement to end of life. Nokian Tyres
continuously improves the environmental performance of its tires.
People driving or operating vehicles equipped with Nokian Tyres’ tires may
be, for example, passenger car drivers, people working for transport com-
panies driving trucks, buses or vans, or people working in forestry or agricul-
ture. Their tire choices, tire maintenance, and driving habits matter, as the
majority of a Nokian Tyres tire’s carbon footprint is generated during its use.
Vianor is the largest car maintenance and tire service chain in the Nordic
countries with a wide network of service centers and online stores, serving
both consumers and business customers.
Consumers and end users
End-of-life tires can
be shredded or gran
-
ulated to be utilized in
various applications.
Used tires can also be
combusted for energy.
Nokian Tyres uses
some materials
derived from end-of-
life tires in its prod
-
ucts, such as recycled
steel and carbon black.
Bus and truck tires
with quality carcasses
can be retreaded two
to four times. Com
-
pared to producing a
new truck tire, retread
-
ing generates less
CO
2
e emissions and
saves resources such
as rubber and oil.
End-of-life
UPSTREAM OWN OPERATIONS DOWNSTREAM
Nokian Tyres and Vianor work with several
subcontractors in various fields, such as con-
struction, security, cleaning, and logistics. All
new subcontractors offering their services are
expected to commit to the Supplier Code of
Conduct.
Nokian Tyres Environmental, Safety and Quality
Guideline also applies to subcontractors.
Before subcontractors’ employees are allowed
to start working in Nokian Tyres’ factories, they
must pass induction training on safe working
practices.
Subcontractors
Some raw materials for tires are transported by
sea to ports in the US and Europe, from which
they are taken to factories by rail and by road.
Some materials are transported to the facto-
ries by road within Europe or North America.
Achieving the Scope 3 climate target requires
emission reductions from road, train, marine
and air transportation.
Transportation
Nokian Tyres provides opportunities for professional
growth and career development and recognizes employ
-
ees for good performance and achieving the goals. Fair
treatment and responsible business practices bring finan
-
cial and job security.
Employee well-being is supported by, e.g., prioritizing
safety and fostering an environment where employees
feel valued and included.
Employees
Nokian Tyres helps customers
reach their targets related to,
for example, sales and customer
satisfaction. This is enabled by
high-quality products and ser-
vices, a comprehensive under-
standing of each market, and
continuous dialogue.
Customers
Nokian Tyres’ products are verifiably safe and meet
the highest quality standards, increasing road safety
for drivers and other people in traffic. Tires’ environ
-
mental impacts are considered in terms of, e.g., energy
efficiency, raw materials, and durability.
Vianor aims for safe journeys and ease so that drivers
can concentrate on what’s important to them.
Consumers and end users
Nokian Tyres’ impact is directly seen in the factory locations as a locally significant job creator
and a part of the surrounding community. The purchases, investments, salaries, and taxes as
well as dividends to shareholders contribute to well-being in different parts of the world.
Nokian Tyres contributes to safe and sustainable mobility and innovation with the company’s
technical expertise and knowledge also through industry and other associations.
Requiring the suppliers to commit to ethical business and sustainability promotes environ-
mental and social responsibility in the supply chain.
Communities and society
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Nokian Tyres 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 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 a modern company culture.
Nokian Tyres’ value chain graph on the previous page provides
an overview of the main features of Nokian Tyres’ upstream
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,
Central Europe,
and North
America
• Actions to provide meaningful
and motivating job content and
working conditions
• Engagement survey Drive!
• Pulse surveys
• 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 emission reductions in company’s own
operations
• Developing new, safe, state-of-the-art products
• Externally certified safety management system
• Promoting the well-being of 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
• Externally certified environmental management system
• 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
and downstream value chain and the company’s position in
it. It includes a brief description of main inputs, key business
relationships including suppliers and customers, distribution
channels, and end users.
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 understanding 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. 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 assessment, and how those views have been or are
considered in Nokian Tyres’ operations, business model, and
strategy.
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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
Customers (B2B).
E.g. tire
dealers and car
dealerships in the
Nordic countries,
Central Europe,
and North
America
• 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
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. People whose
livelihoods depend on natural rubber are recognized as a
risk group with regard to material negative human rights
impacts. Preventing and mitigating the impacts and
promoting and ensuring decent working conditions are
essential aspects of Nokian Tyres’ business conduct.
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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
Investors,
shareholders,
Board of
Directors.
E.g. potential
or existing
shareholders
(domestic or
international), and
Board members
• Investor meetings, events, and
seminars
• Stock exchange releases and
other publications
• Shareholder’s General Meetings
• 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 emission 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 emission 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
• Externally certified environmental management system
• 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
• 100 percent of tire production waste has been utilized
after 2021, so there is no landfilled production waste
• Preparing for the EU deforestation regulation (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. Collecting insights from consumers and end
users is an essential part of the development process for 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 websites.
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,
which Nokian Tyres can utilize.
SBM-3 Material sustainability-related impacts,
risks and opportunities
Nokian Tyres’ material impacts, risks, and opportunities are
presented in the following tables. The tables include 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 & 2)
Actual negative
impact (Own
operations)
Nokian Tyres’ Scope 1 and 2 emissions are mainly generated
through energy use in the factories.
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 full-scale
zero-CO
2
e-emissions (Scope 1 & 2) factory in the tire industry and increases the company's
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 aims to increasingly use greenhouse gas emission levels as a criterion for supplier
selection.
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' key targets 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 raw material 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 Carbon Border Adjustment Mechanism (CBAM) for high-
carbon goods and carbon taxes.
Possible effects on sourcing decisions toward more sustainable raw materials. One of
Nokian Tyres' key targets is to increase the share of recycled and renewable raw materials in
tires to 50 percent by 2030.
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-
emissions (Scope 1 & 2) factory in Romania are recognized
opportunities for brand building, which can generate more
revenue.
Continued investments on climate-friendly technologies. Nokian Tyres aims to be the
industry leader in lowering factory GHG emissions and targets to reach net zero by 2050.
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 and all-season tire knowhow and
product portfolio.
Increased revenue from
innovations with low carbon
footprint raw materials
Opportunity
(Own operations)
Innovative raw material use helps create sustainable products
that meet customer and consumer needs and expectations,
generating revenue.
Continued investments on innovation and research and supplier collaboration. One of
Nokian Tyres' key targets is to increase the share of recycled and renewable raw materials in
tires to 50 percent by 2030.
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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
performance 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’ products do not contain any Substances of Very High Concern (SVHC). The
company is committed to avoiding 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 industry associations, and, as needed, makes decisions on
new raw materials in order to further develop the environmental sustainability of products.
In case an existing substance is re-classified as an SVHC, Nokian Tyres will substitute it or
phase it out as soon as feasible.
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.
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 2025, 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’ Guideline
for Sustainable Natural Rubber, Biodiversity and Deforestation, 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.
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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 97 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 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 supports flexible working hours and work arrangements. 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 the 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 ownership of their development and career. Manager’s
role is to offer support by providing resources and opportunities for learning, where
feasible. Employees also have the 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,
which can have a positive impact across all time horizons.
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 efforts.
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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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.
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. Nokian Tyres' Guideline for Sustainable Natural Rubber, Biodiversity and
Deforestation addresses 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 traffic and end
user safety
Actual positive
impact
(Downstream value
chain)
Premium quality means premium safety: Nokian Tyres
has not had a significant recall in 24 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 product development is 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)
This potential impact is relevant across all time horizons.
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, the company follows
regulations, conducts training, and has 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.
Nokian Tyres communicates on sustainability topics regularly.
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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 Tyres Europe'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
sustainability-linked funding. The KPIs in use in sustainability-
linked funding were defined in 2023 in the company’s
Sustainability-Linked Bond Framework. The framework has two
KPIs, both of which are related to greenhouse 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 KPIs
are used for all sustainability-linked funding. Failure to meet these
KPIs would result in additional interest expenses to Nokian Tyres.
Resilience of Nokian Tyres’ strategy and business model
to address sustainability impacts, risks and opportunities
Nokian Tyres integrates material sustainability matters in its
strategic planning and target setting. This allows the company
to adapt to emerging developments. Nokian Tyres constantly
develops corporate responsibility matters as part of its
daily operations and has established policies and processes
to respond to and manage material impacts, risks, and
opportunities (IROs) proactively.
Nokian Tyres’ strategy implementation and business model are
not critically dependent on individual customers or suppliers,
and the company regularly maintains business continuity plans.
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.
As a conclusion, Nokian Tyres’ strategy and business model
are expected to adapt in relation to the material sustainability
impacts and risks identified, and the company is prepared to take
advantage of material opportunities both in the short and long
term. For these reasons, Nokian Tyres has not conducted a more
detailed analysis on the resilience of its strategy and business
model in addressing individual material sustainability topics.
Further details about the material IROs and Nokian Tyres’
management of them can be found under the specific ESRS
topics. There were no changes to material IROs compared to the
previous reporting period.
IRO-1 The process to identify and assess material
impacts, risks and opportunities
Nokian Tyres carried out a sustainability double materiality
assessment 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 Committee, 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, several actual and
potential, 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
stakeholder 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, suppliers, business partners,
corporate customers, retailers, investors, board members,
authorities, media, NGOs, and industry associations. The views
of these stakeholders informed the subsequent assessment 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’ simultaneously 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 on the basis of both the impact
materiality scores and risk materiality scores. The median
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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.
In 2025, Nokian Tyres reviewed the double materiality analysis
results. The review was based both on the criteria presented in
EFRAG IG 1 Materiality Assessment Implementation Guidance
and internal discussions regarding material topics and impacts,
risks, and opportunities (IROs). The review found that there were
no changes to Nokian Tyres’ material topics in 2025. As part
of the process, risk assessments were conducted in 2025 to
support the evaluation and to ensure that the IROs remain up to
date. The assessment included a climate-related risk review.
The next review of material topics will take place in spring 2026,
and a comprehensive assessment is planned for late 2026 to
early 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 energy is needed
for tire manufacturing and facilities. In addition, raw materials,
logistics, and tire use cause material Scope 3 emissions.
Approximately 85 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.
CLIMATE-RELATED RISK PROCESS
Step 1: Mapping and identification of relevant climate-
related risks
The first step involves mapping and identifying pertinent
climate-related 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-related 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 in
2023 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 operations 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 replacement 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 governments, 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).
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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.
CLIMATE-RELATED OPPORTUNITY PROCESS
Similarly, climate-related opportunities are integrated into
strategy and other financial planning but are also treated
by dedicated specialists 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 environment. 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.
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 Audit Committee and 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
Audit Committee and the People and Sustainability Committee
monitor 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 downstream 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 microplastics 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 introducing more durable products
that result in decreased generation of TRWP.
The topic of water and marine resources was assessed but
not considered material. Water risk assessments for all current
Nokian Tyres’ production sites were conducted in 2023 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 disclosures 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 biodiversity risk filter. The filter
includes systemic, transition, and physical risk and opportunity
assessment and identification. According to this assessment
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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, with natural rubber cultivation impacting
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, 25 are natural rubber farmers
and manufacturers, three metal cord manufacturers, two
textile/belt manufacturers, one oil company, and one chemical
manufacturer. Regarding biodiversity risks, the most important
countries for Nokian Tyres are Indonesia, Thailand, and Ivory
Coast. The actual biodiversity impacts of individual supplier
sites have not been investigated. Any mitigation measures
required have not yet been defined.
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 it 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
evaluated the use of material resources, as well as impacts,
risks, and opportunities related to the circular economy.
However, this assessment did not include the screening of site
locations pertaining to Nokian Tyres’ operations.
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
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 130–133. An index of datapoints deriving from
other EU legislation is presented on pages 134–139.
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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ENVIRONMENTAL
INFORMATION
EU Taxonomy 63
E1 Climate change 69
E2 Pollution 81
E4 Biodiversity and ecosystems 87
E5 Resource use and circular economy 91
EU Taxonomy
ENVIRONMENTAL INFORMATION
The EU’s Taxonomy Regulation is designed to support the
transformation of the EU economy to meet its European Green
Deal objectives, including the 2050 climate-neutrality target.
The Taxonomy Regulation classifies economic activities, which
can potentially be aligned with the 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 assessed 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 assessment 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.
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 environment 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 E2-3.
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 E5-2.
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. Nokian Tyres’ 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 Business and Human
Rights, adhering to the OECD Guidelines for Multinational
Enterprises on Responsible Business Conduct, and to following
the International Labour Organization’s (ILO) Declaration on
Fundamental Principles and Rights at Work. Nokian Tyres is a
member of the UN’s Global Compact initiative and follows its
ethical principles.
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Economic activities
The tire industry is included in the EU Taxonomy’s technical
screening criteria under the economic activity groups
“Manufacture of other low-carbon technologies” (Climate
change mitigation) and “Remanufacturing” (Transition to a
circular economy). After investigating the EU Taxonomy’s
technical screening criteria, the following conclusions on Nokian
Tyres’ economic activities were made:
• Tires with low rolling resistance ratings that are
manufactured by Nokian Tyres have a 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 their use phase CO
2
emissions.
• Tire retreading can be included in the Remanufacturing
section of the EU Taxonomy’s environmental target
Transition to circular economy.
Manufacture of tires with low life-cycle greenhouse gas
emissions and tire retreading business activities represented
16.8 percent (14.9 in 2024) of Nokian Tyres’ total net sales in
2025. Based on Nokian Tyres’ assessment, these economic
activities are EU Taxonomy eligible. Share of Opex within the
same scope of EU Taxonomy was 14.0 (11.9) percent. Share of
Capex within the same scope of EU Taxonomy was 12.5 (3.8)
percent, and the significant increase was driven by investments
in the factory in Romania. There are no updates or restatements
performed in 2025 for the information reported in 2024.
Neither of the two economic activities contribute to multiple
environmental objectives, therefore no items have been double
counted for the numerator as further defined in the following
section.
It must be noted that the Taxonomy reporting scope and
criteria may change in coming years as this is only the fifth
reporting round, and therefore also the figures may not be
comparable between earlier and future reporting periods.
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 212.3
(192.5) 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 1,373.6 (1,289.8) million
• C: Share of net sales within the scope of EU Taxonomy
• C = A/B%
Opex and Capex
• D: Eligible tire production companies’ and retreading plants’
Opex: Research and Development and real estate expenses
deducted by depreciation and amortization, amounting to
EUR 5.8 (4.7) million
• E: Group Opex: Research and Development and real estate
expenses deducted by depreciation and amortization,
amounting to EUR 41.6 (39.2) 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 20.6 (15.4) million
• H: Group Capex under EU taxonomy including tangible,
intangible, and right-of-use investments amounting to
EUR 164.4 (400.1) million. Acquisitions of property, plant
and equipment and intangible assets as included in the
consolidated statement of cash flows amounting to EUR
126.9 (350.1) million excludes the impact from additions
to right-of-use assets of EUR 37.5 (50.0) 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
readiness 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 2025
Financial year 2025 Substantial contribution criteria DNSH criteria (“Does Not Significantly Harm”)
Economic Activities (1) Code (2)
Turnover (3)
Proportion of
turnover, year
2025 (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
2024 (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
TAXONOMY-ELIGIBLE ACTIVITIES
Environmentally sustainable activities
(Taxonomy-aligned)
Manufacturing of other low carbon
technologies 3.6.
212.3 15.5% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 13.6% E
Repair, refurbishment and remanufacturing 5.1.
18.8 1.4% N/EL N/EL N/EL N/EL Y N/EL Y Y Y Y Y Y 1.4% E
Turnover of environmentally sustainable
activities (Taxonomy-aligned) (A.1)
231.2 16.8% 92% 0% 0% 0% 8% 0% Y Y Y Y Y 14.9%
Of which enabling
231.2 16.8% 92% 0% 0% 0% 8% 0% Y Y Y Y Y 14.9% E
Of which transitional
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)
- - - - - - - - -
Turnover of Taxonomy-eligible activities
(A.1+A.2)
231.2 16.8% 14.9%
TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities
1,142.5 83.2%
TOTAL
1,373.6 100%
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Statement
Year 2025
Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2025
Financial year 2025 Substantial contribution criteria DNSH criteria (“Does Not Significantly Harm”)
Economic Activities (1) Code (2)
CapEx (3)
Proportion of
CapEx, year
2025 (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
2024 (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
TAXONOMY-ELIGIBLE ACTIVITIES
Environmentally sustainable activities
(Taxonomy-aligned)
Manufacturing of other low carbon
technologies 3.6.
20.2 12.3% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 3.7%
E
Repair, refurbishment and remanufacturing 5.1.
0.4 0.2% N/EL N/EL N/EL N/EL Y N/EL Y Y Y Y Y Y 0.1%
E
CapEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1)
20.6 12.5% 98% 0% 0% 0% 2% 0% Y Y Y Y Y 3.8%
Of which enabling
20.6 12.5% 98% 0% 0% 0% 2% 0% Y Y Y Y Y 3.8%
E
Of which transitional
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)
- - - - - - - - -
CapEx of Taxonomy-eligible activities
(A.1+A.2)
20.6 12.5% 3.8%
TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities
143.9 87.5%
TOTAL
164.4 100%
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Year 2025
Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2025
Financial year 2025 Substantial contribution criteria DNSH criteria (“Does Not Significantly Harm”)
Economic Activities (1) Code (2)
OpEx (3)
Proportion of
OpEx, year
2025 (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
2024 (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
TAXONOMY-ELIGIBLE ACTIVITIES
Environmentally sustainable activities
(Taxonomy-aligned)
Manufacturing of other low carbon
technologies 3.6.
5.8 14.0%
Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y
11.9%
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
0.0%
E
OpEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1)
5.8 14.0% 100.0% 0% 0% 0% 0.0% 0%
Y Y Y Y Y
11.9%
Of which enabling
5.8 14.0% 100.0% 0% 0% 0% 0.0% 0%
Y Y Y Y Y
11.9%
E
Of which transitional
Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned
activities)
OpEx of Taxonomy-eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2)
- - - - - - - - -
OpEx of Taxonomy-eligible activities
(A.1+A.2)
5.8 14.0% 11.9%
TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities
35.8 86.0%
TOTAL
41.6 100%
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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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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
• Guideline for Sustainable Natural
Rubber, Biodiversity and Deforestation
Nokian Tyres is committed to environmental responsibility, focusing on reducing
greenhouse gas emissions, improving energy efficiency, and prioritizing renewable
energy.
The company is committed to continuously improving the quality, safety and
environmental friendliness of its products, services, and processes.
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.
ENVIRONMENTAL INFORMATION
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E1-1 Transition strategy for climate change
mitigation
Nokian Tyres adopted a transition plan for climate change
mitigation in early 2026, after the end of the reporting period.
The foundation of the plan was laid out in 2024 when the
company's updated greenhouse gas emission reduction targets
were approved by the Science Based Targets initiative and
confirmed by Nokian Tyres’ Board of Directors.
The company’s targets concern both Nokian Tyres’ own
operations and the value chain, and the company is expected
to reach net-zero greenhouse gas emissions by 2050, aligning
with the Paris Agreement. The Scope 1 and 2 targets are aligned
with the 1.5-degree pathway, and there are also targets for
the company’s significant Scope 3 categories. The detailed
targets can be found under E1-4. In addition, the transition plan
includes intermediate targets.
Main decarbonization levers and key actions
To enable the transition, Nokian Tyres plans on
• Operational process decarbonization at all factories, Vianor
service centers, and other relevant units
• R&D and procurement efforts to decrease emissions from
raw materials and tire use
• Supply chain and logistics decarbonization
• Switching to low-emission company vehicles.
In the long term, Nokian Tyres might also utilize high-quality
carbon offsets for residual emissions.
The levers require extensive cooperation across operations and
in the value chain. Significant current and near-term actions are
the following:
• Studies and actions for replacing fossil fuels are ongoing.
In 2025, all energy used at the Romania factory was wind
energy and thus from zero-CO
2
-emissions sources.
• Nokian Tyres aims to maximize the use of zero-CO
2
-
emissions energy sources. This is done by, e.g., covering the
electricity use by self-generated solar energy, zero-CO
2
electricity certificates, and power purchase agreements with
renewable energy producers.
• Continued energy efficiency projects to reduce energy use
• Increasingly requiring suppliers to lower the CO
2
footprint
of their processes and products and to calculate and report
their greenhouse gas emissions transparently and reliably
• Nokian Tyres’ target of increasing the share of recycled and
renewable materials in tires to 50 percent by 2030 supports
the CO
2
emission reductions.
The plan does not include cost estimates, as there is significant
uncertainty of expenses related to actions, in particular for
those aimed at reducing Scope 3 emissions. As for Scope
1 and 2, additional expenses during the next five years are
expected to be mostly related to reducing emissions from
natural gas used at the factory in the US. Actions, investments,
and expenditures needed for the realization of the plan
are integrated into Nokian Tyres’ short-term and long-
term strategic and financial planning, including the annual
budgeting process. During 2025, direct investments and
expenditures related to greenhouse gas emission reduction
were not considered financially material in terms of overall
investment and expenses. The actions in 2025 were business-
as-usual activities, such as R&D actions targeted for improved
environmental performance of tires and purchasing zero-
CO
2
-emissions energy. To implement the transition plan,
Nokian Tyres will continue with the investments and programs
regarding manufacturing and product development that are
already ongoing, and the company will start new investments
and expenditures as needed while proceeding with the plan.
Nokian Tyres Group has arranged part of its external financing
as sustainability-linked funding. There is more information on
this topic under ESRS 2 SBM-3.
Potential locked-in greenhouse gas emissions
Nokian Tyres assessed the potential locked-in greenhouse gas
emissions from its key assets and from the use of products sold
and concluded that they will not jeopardize the achievement
of the company’s greenhouse gas reduction targets nor drive
transition risk.
Nokian Tyres assesses that there are solutions available in the
short or medium term for GHG emissions linked to the company
assets. Hence there are no locked-in GHG emissions from the
assets. As for the use of products sold, based on the GHG
Protocol and recalled by the Science Based Targets initiative,
the emissions from tire use are not included in the value chain
emissions reduction targets scope, as the emissions are already
accounted for in the overall emissions balance of vehicles.
Nevertheless, Nokian Tyres continuously improves the energy
efficiency of its products to minimize their indirect contribution
to vehicle energy consumption.
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Taxonomy regulation and Paris-aligned benchmarks
The tire industry is included in the EU Taxonomy’s technical
screening criteria under the economic activity groups
“Manufacture of other low-carbon technologies” (Climate
change mitigation) and “Remanufacturing” (Transition to
a circular economy). Nokian Tyres’ alignment of operating
expenses and capital expenditure to the EU Taxonomy
objectives is disclosed under the section “EU Taxonomy”.
Nokian Tyres aims to increase the share of the company’s EU
Taxonomy-aligned economic activities by improving the rolling
resistance of its tires, targeting to increase the number and
share of rolling resistance class A and B tires, and to have at
least 60 products in the best rolling resistance A class by 2028.
Nokian Tyres also promotes tire retreading and other circular
solutions.
Nokian Tyres is not excluded from the EU Paris-aligned
Benchmarks, as the Group is not involved in environmentally
harmful practices as specified in Article 12 of the Commission
delegated regulation (EU) 2020/1818.
Continuing the work to address climate change
The transition plan was approved by the Board of Directors in
early 2026, and its implementation is ongoing. Nokian Tyres has
been a forerunner in the tire industry in reducing Scope 1 and 2
greenhouse gas emissions from tire factories, and the targets
and actions included in the transition plan will continue the
company’s ambitious climate work. To drive the achievement of
climate targets, the reduction of Scope 1 and 2 carbon dioxide
equivalent (CO
2
e) emissions is linked to long-term incentive
programs.
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 ongoing, the likelihood of this risk affecting
Nokian Tyres in the short term can be expected to be high,
and medium in the 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, Nokian Tyres can create 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 considered high and thus has the potential to cause
a medium financial 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.
Nokian Tyres’ first science-based emissions reduction targets
were approved by the Science Based Targets initiative already
in 2020. The company achieved its key Scope 1 and 2 reduction
target in 2023, seven years in advance, and consequently
updated its science-based emission reduction targets in 2024.
Nokian Tyres monitors its greenhouse gas emissions and the
realization of action plans to ensure that the company makes
due progress in the achievement of targets. Greenhouse gas
emission figures are reported under E1-6.
Nokian Tyres may update its transition plan as methods and
technologies for reducing greenhouse gas emissions develop
or if there are significant changes in the company’s strategy or
business scope.
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 its operations
and supply chain, as well as from tire usage. Approximately 85
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
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E1-2 Policies related to climate change mitigation
and adaptation
Nokian Tyres’ Code of Conduct states that the company
is committed to reducing greenhouse gas emissions. The
Environmental, Safety, and Quality Guideline describes the
matter further by stating Nokian Tyres’ commitment to
environmental responsibility, which includes but is not limited
to reducing greenhouse gas emissions, 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 corporate website company.nokiantyres.com.
Nokian Tyres is committed to consulting with stakeholders on
environmental matters and reporting on them regularly. The
guideline received minor updates in 2025 based on customer
needs. In previous updates, the views of other stakeholders
have 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 low carbon
solutions, when possible.
Nokian Tyres’ Guideline for Sustainable Natural Rubber,
Biodiversity and Deforestation (formerly the Sustainable
Natural Rubber Policy) expects natural rubber suppliers to
join in combatting 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 Guideline for Sustainable Natural Rubber,
Biodiversity and Deforestation was updated in 2025 to include
more topics related to biodiversity, deforestation, and the
EUDR.
The Senior Vice President of Operations in the Management
Team is the most senior executive accountable for the
implementation of the Supplier Code of Conduct and the
Guideline for Sustainable Natural Rubber, Biodiversity and
Deforestation. Both policies are available on the corporate
website company.nokiantyres.com.
Greenhouse gas emissions from 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 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
emission 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.
E1-3 Actions and resources in relation to climate
change policies
Reducing greenhouse gas emissions
Nokian Tyres purchases 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 factory in Romania is critical for achieving
the GHG emission reduction targets, since it is a zero-CO
2
e-
emissions (Scope 1 & 2) factory. Thus, emission reductions
are significant when producing tires at the Romanian factory
compared to production in Finland or in the US.
In the coming years, Nokian Tyres will concentrate on actions
that are 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 rolling resistance. The higher the rolling
resistance is, the higher the fuel consumption and CO
2
emissions will be.
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.
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Statement
The EU Tyre Label categorizes fuel efficiency on a scale from A
to E. The share 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. At the moment, class C is the most
common fuel economy rating for Nokian Tyres’ passenger car
tires. More information about the label categories is presented
in the topic “Consumers and end users”.
Approximately 85 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 has four science-based emission reduction targets
that are in line with the Paris Agreement. The Scope 1 and 2
targets are in line with the 1.5 degree 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.
NEAR-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.
• Target includes emissions from purchased goods and
services (excluding emissions calculated by spend), 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.
• Target includes emissions from purchased goods and
services, capital goods, and upstream transportation and
distribution.
Base year 2022 2024 2025
Scope 1 & 2 t CO
2
e 31,680 21,642 19,555
Scope 3 (near term)
kg CO
2
e / ton of
product purchased 3,436 3,726 3,638
Scope 3 (long term)
kg CO
2
e / ton of
product purchased 4,718 5,164 4,451
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 in a linear manner but is dependent on new product
launches as well as discontinued products. During 2025, three
new products were included in the rolling resistance class A in
EU Tyre Labelling.
Nokian Tyres products in the rolling resistance A class*
2024 2025 Goal for 2028
10 13 min. 60
*Tires included in the EU Tyre Labelling.
The expected decarbonization levers and actions are discussed
under E1-1, and their overall quantitative contributions to
achieving the 2030 emission reduction targets are described in
the following bridge charts. Nokian Tyres does not yet publish
estimates of quantitative contributions of different actions for
the years 2030 to 2050, as technologies evolve and are likely to
affect selected actions from 2030 onward.
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Sustainability
Statement
Estimated impact of planned key actions on Scope 1 and 2 CO
2
emissions until 2030
CO
2
e tons
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
32,368
5,000
-7,500
-6,900
-1,000
-4,000
17,968
18,773
Baseline 2022
Output growth 2022–2030
Actions 2023–2024
Reducing emissions from
natural gas used in the US
Zero-CO
2
energy sources
for Vianor heating
Zero-CO
2
fuels in steam
production in Finland
Emissions after actions 2030
Target 2030
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Estimated impact of planned key actions on Scope 3 intensity (kg CO
2
e / t purchased) until 2030
kg CO
2
e / ton purchased
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
3,840
167
1,857 1,859
-950
-650
-200
-50
-300
Baseline 2022
Output growth 2022–2030
Selecting materials with
smaller CO
2
footprint
Suppliers’ actions
for reducing CO
2
e
New innovations together
with suppliers
Improving resource
use efficiency
CO
2
reduction from
transportation
Target 2030
Emissions intensity 2030
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E1-5 Energy consumption and mix
Nokian Tyres purchases energy for its factories from external
suppliers, and the company also generates some of the
electricity and steam that it uses. In 2025, 80.5 percent (66.3%
in 2024) of all energy used in the tire factories was produced
from renewable energy sources.
The high climate impact sectors used to determine 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
2025 2024
Tire
factory,
Finland
2025
Tire
factory,
Romania
2025
Tire
factory, US
2025
Wheel
factory,
Finland
2025
Other
2025
(1) Fuel consumption from coal and coal products
(MWh) - - - - - - -
(2) Fuel consumption from crude oil and petroleum
products (MWh) 3,809 4,483 0 0 0 22 3,787
(3) Fuel consumption from natural gas (MWh) 71,296 71,140 0 0 66,376 4,064 856
(4) Fuel consumption from other fossil sources (MWh) - - - - - - -
(5) Consumption of purchased or acquired electricity,
heat, steam, and cooling from fossil sources (MWh) 27, 302 37,974 3,880 0 0 1,407 22,015
(6) Total fossil energy consumption (MWh)
(calculated as the sum of lines 1 to 5) 102,407 113,596 3,880 0 66,376 5,493 26,658
Share of fossil sources in total energy
consumption (%) 23.6 29.9% 1.9 0 60.4 53.5 41.8
(7) Consumption from nuclear sources (MWh) 10,004 55,280 0 0 0 4,784 5,221
Share of consumption from nuclear sources in
total energy consumption (%) 2.3 14.5% 0 0 0 46.5 8.2
(8) Fuel consumption for renewable sources,
including biomass (also comprising industrial and
municipal waste of biologic origin, biogas, renewable
hydrogen, etc.) (MWh) 359 338 0 0 0 0 359
(9) Consumption of purchased or acquired electricity,
heat, steam, and cooling from renewable sources
(MWh) 317,658 207,53 4 198,570 47,063 40,535 0 31,490
(10) The consumption of self-generated non-fuel
renewable energy (MWh) 3,003 3,217 0 0 3,003 0 0
(11) Total renewable energy consumption (MWh)
(calculated as the sum of lines 8 to 10) 321,020 211,089 198,570 47,063 43,538 0 31,849
Share of renewable sources in total energy
consumption (%) 74.1 55.6% 98.1 100 39.6 0 50
Total energy consumption (MWh) (calculated as the
sum of lines 6, 7, and 11) 433,431 379,966 202,450 47,063 109,914 10,277 63,728
Energy intensity per net sales
2025 2024
% 2025 /
2024
Total energy consumption from
activities in high climate impact
sectors per net sales from
activities in high climate impact
sectors (MWh/EUR million) 315.5 294.6 107%
Net sales from activities in high
climate impact sectors used to
calculate energy intensity
(EUR million) 1,373.6 1,289.8
Net sales (other) (EUR million) - -
Total net sales (Financial
Statements) (EUR million) 1,373,6 1,289.8
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E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions
In 2025, GHG emissions from Nokian Tyres’ factories
represented 54 percent of its total GHG emissions. The factory
emissions are available in the table Greenhouse gas emissions
from factories 2025 on the next page. The tire factories’ Scope
1 and 2 emissions intensity per ton of tires produced was 114 kg
CO
2
e / ton of product.
Nokian Tyres’ Scope 1 emissions include emissions from
self-generated 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 calculation is based on the average emissions
intensity of power grids in the operations countries, using
emission factors from the International Energy Agency (IEA). In
the Scope 2 market-based emissions calculation, supplier-based
emissions factors are used where available and in other cases
the calculation is based on country-level residual mix emission
factors from the Association of Issuing Bodies (AIB). The
emissions factors for district heating are from Defra.
In 2025, the calculation of Scope 1 and 2 emissions improved,
as some estimates were more precise due to better data
availability. Therefore, the figures from 2022 and 2024 marked
with an asterisk (*) have been restated. In the company’s
Sustainability Statement 2024 they were reported as follows
(tCO
2
eq):
• Scope 1: 10,978 and 15,195 for 2022 and 2024, respectively
• Scope 2 (location-based): 26,562 and 28,840
• Scope 2 (market-based): 21,390 and 7,803.
Greenhouse gas emissions
Retrospective Milestones and target years
Base year 2024 2025
% 2025 /
2024 2025 2030 2050
Annual % target /
Base year
2
Scope 1 GHG emissions 2022
Gross Scope 1 GHG emissions (tCO
2
eq) 10,494* 14,702* 14,896 101% 12,000 14,000 2,000 -4.2%
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) 25,845* 23,389* 32,183 138%
Gross market-based Scope 2 GHG emissions
(tCO
2
eq) 21,186* 6,940* 4,659 67% 15,250 4,360 1,160 9.9%
Scope 1 + Scope 2 (market-based) emissions 31,680 21,642 19,555 90% 27, 250 18,360 3 ,160 5.3%
Significant scope 3 GHG emissions 2022
Total Gross indirect (Scope 3) GHG emissions
(tCO
2
eq) 7,151 ,79 0 7,642,986 7,935,043 104%
1 Purchased goods and services 589,545 6 47, 242 682,506 105% 409,924 507,0 03 81,575 1.8%
2 Capital goods 54,206 135,476 55,994 41% 49,704 89,233 7,405 -8.1%
3 Fuel and energy-related activities (not
included in Scope 1 or Scope 2) 13,925 16,321 17,453 107%
4 Upstream transportation and distribution 53,124 57,603 72,538 126% 44,202 58,565 7,2 57 -1.3%
5 Waste generated in operations 280 267 332 125%
7 Employee commuting
1
1,059 1,368 1,985 145%
8 Upstream leased assets 12,708 8,323 8,171 98%
9 Downstream transportation 446 241 266 110%
11 Use of sold products 6,422,428 6,770,121 7,089,665 105%
12 End-of-life treatment of sold products 4,070 6,025 6,133 102%
Total GHG emissions
Total GHG emissions (location-based) (tCO
2
eq) 7,188,129 7,6 81,07 7 7,982,122 104%
Total GHG emissions (market-based) (tCO
2
eq) 7,1 83,470 7,664,628 7,954,598 104%
1
Includes the tire factories.
2
2030 target used in calculation.
*Restated
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Greenhouse gas emissions from factories 2025
Tire factory,
Finland
Tire factory,
Romania
Tire factory,
US
Wheel factory,
Finland
Scope 1 GHG emissions
Gross Scope 1 GHG emissions (tCO
2
eq) 50 0 12,147 830
Scope 2 GHG emissions
Gross location-based Scope 2 GHG emissions (tCO
2
eq) 4,921 10,636 12,070 431
Gross market-based Scope 2 GHG emissions (tCO
2
eq) 1,278 0 0 247
Scope 1 + Scope 2 (market-based) emissions 1,328 0 12,147 1,077
Significant Scope 3 GHG emissions
Total Gross indirect (Scope 3) GHG emissions (tCO
2
eq) 3,410,442 313,535 557,896 18,152
1 Purchased goods and services 363,451 49,475 110,002 16,721
2 Capital goods 12,621 39,160 3,074 0
3 Fuel and energy-related activities (not included in Scope 1
or Scope 2) 7,04 4 961 7,321 376
4 Upstream transportation and distribution 36,452 118,94 14,855 899
5 Waste generated in operations 65 81 110 52
7 Employee commuting 327 713 946 0
8 Upstream leased assets 286 39 12 0
9 Downstream transportation 93 33 42 98
11 Use of sold products 2,987,058 210,866 419,679 0
12 End-of-life treatment of sold products 3,046 314 1,855 7
Total GHG emissions
Total GHG emissions (location-based) (tCO
2
eq) 3,415,413 324,171 582,113 19,413
Total GHG emissions (market-based) (tCO
2
eq) 3,411,770 313,535 570,043 19,229
The absolute Scope 3 emissions targets for 2030 and 2050
have been revised due to updated forecasts. 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). The 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 completely 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.
GHG intensity per net sales
2025 2024 % 2025 / 2024
Total GHG emissions (location-based) per net sales (tCO
2
eq / EUR million) 5,810.9 5,955.2 98%
Total GHG emissions (market-based) per net sales (tCO
2
eq / EUR million) 5,790.9 5,942.5 97%
Net sales used to calculate GHG intensity (EUR million) 1,373.6 1,289.8
Net sales (other) (EUR million) - -
Total net sales (in Financial Statements) (EUR million) 1,373.6 1,289.8
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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
40 percent of upstream transportation and distribution
emissions in 2025. 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: 40 percent. Secondary data: 60 percent.
Category 5: Waste generated in operations
Nokian Tyres received activity data from waste management
suppliers’ portals and reports. Waste was classified according to
waste type and waste treatment type, and multiplied with the
corresponding Defra emissions factor.
Warehouses, sales companies and test centers’ waste were
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 the tire factories. 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 the 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 warehouses 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
e emissions were calculated
with Defra emissions factors.
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
customers. 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 16 percent of final goods
deliveries 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
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of final product transportation. Total wheel transportation and
distribution emissions were then calculated, and the 16 percent
share of customer paid transportation 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
calculated with Nokian Tyres’ own formula, which considers
machinery’s estimated fuel consumption, quantity of tires per
machine, estimated 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 consumption 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 mass of wheels is allocated between recycled and
landfilled fractions (OECD: 85 percent recycled, so the remaining
15 percent is considered landfilled).
The total mass per disposal method is linked to corresponding
emissions factor from Defra to calculate the related emissions.
All reused and recycled end-of-life products are considered
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.
Biogenic emissions data is generally not available from
suppliers, so Nokian Tyres is unable to report them
comprehensively. The amount of biogenic emissions from the
Finnish tire factory in Scope 2 was 43,388 tons CO
2
e (40,506
tons CO
2
e in 2024). Scope 2 data is not available from other sites
or operations. For Scope 1 and 3, data is not available.
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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
• Guideline for Sustainable Natural
Rubber, Biodiversity and Deforestation
Nokian Tyres is committed to continuously improving 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 preventing air, water, and soil contamination and expects
its suppliers to do the same.
ENVIRONMENTAL INFORMATION
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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 performance of its products, services,
and processes, considering the entire product lifecycle. 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 2025, 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
regulations but also preserving biodiversity and maintaining
air and soil quality. Responsible chemical management is
a key part of this commitment, with efforts to reduce or
phase out hazardous substances. Moreover, Nokian Tyres has
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 relevant 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’ Guideline for Sustainable Natural Rubber,
Biodiversity and Deforestation (former Sustainable Natural
Rubber Policy) addresses pollution by committing to prevent
air, water, and soil contamination. The guideline’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 Guideline
for Sustainable Natural Rubber, Biodiversity and Deforestation
was updated in 2025 to include more topics related to
biodiversity, deforestation, and the EUDR.
The Senior Vice President of Operations in the Management
Team is the most senior executive accountable for the
implementation of the Supplier Code of Conduct and the
Guideline for Sustainable Natural Rubber, Biodiversity and
Deforestation.
All listed policies and guidelines are available for the public on
the Nokian Tyres corporate website company.nokiantyres.com.
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
requirements 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 minimizing 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, and for years this work has included also
research into the substitution of the most hazardous chemicals.
Environmental representatives and local working groups
are dedicated to enhancing daily sustainability practices.
Environmental experts handle practical coordination and
training at the factories, 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,
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affected communities and own workforce is recorded in the
company’s internal register, and corrective actions are taken
when necessary. Environmental experts at the factories are
responsible for maintaining these records, ensuring feedback
on environmental aspects is addressed and stakeholder
concerns are considered.
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).
The program outlines detailed targets, actions, schedules, and
assigned responsibilities to achieve the annual and 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 concentration measurements. At the tire
factory in the US, air emissions are calculated from the amount
of raw materials used.
Particle concentrations at the tire factories have consistently
remained within permit limits. Dust that escapes the filter
system primarily causes aesthetic inconvenience and poses no
significant environmental or health risks. The amount of dust
emissions was approximately 1.5 tons (1.5 tons in 2024) in the
tire factory in Finland, 57.3 tons (58.5) in the tire factory in the
US, and 23.5 kilograms in the tire factory in Romania. The low
amount of dust emissions in Romania is due to the best available
technology used at the new factory, removing dust efficiently.
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.
Solvents, or volatile organic compounds (VOCs), have
represented the company’s most significant air emissions at the
tire factory in Finland. However, a 2022 spread modelling study
estimated that VOC concentrations and their environmental
effects are minimal.
Chemical operation supervisors’ audits
The target is that each year, two audits are conducted by chemical
specialists at each tire factory, focusing on the use and storage
of chemicals in Nokian Tyres’ factories. Chemical operation
supervisors or other named expert visit the factory to inspect the
storage and handling of chemicals. The inspection is used to verify
compliance with legislation. For example, whether the labels on
chemical packages are correct, storage locations are clean, leak
control has been arranged, and practices on potentially explosive
atmospheres are appropriately followed. 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 highly 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
environment are influenced not only by tire design but also
by external factors such as driving behavior, road and vehicle
characteristics, and weather. Addressing the 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, reproducible, 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 inhouse testing capabilities to meet future
requirements for durable and safe tires. Tyres Europe (formerly
ETRMA) launched the multi-sectorial TRWP Platform in July 2018
to build scientific knowledge and develop practical solutions
for reducing environmental particle levels. Nokian Tyres actively
contributes to this initiative as a member of Tyres Europe.
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Supplier requirements
Nokian Tyres mandates compliance from its suppliers through
the Supplier Code of Conduct and the Guideline for Sustainable
Natural Rubber, Biodiversity and Deforestation. For more
information on policy-related actions in the value chain, see E2-1.
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.
Nokian Tyres has demonstrated industry leadership as the first
tire company to eliminate harmful highly 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 implemented in July 2025, sets
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 or toxic
chemicals or Substances of Very High Concern (SVHC) as
defined by the EU’s REACH regulation in tire production. The
target is voluntary but monitored monthly and when approving
new chemicals to be taken into use. In 2025, Nokian Tyres’ tires
once again did not contain any carcinogenic or SVHC chemicals.
The company also works to ensure that the tires sold in Vianor
service centers are free from SVHC.
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 at Nokian Tyres’ tire factories,
focusing on the use and storage of chemicals. In 2025, these
audits were completed in the factories in Finland and Romania,
but not in the US. Additionally, the company met its target to
ensure chemical and environmental safety during the building
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, and the calculation is based on the used solvents. Nokian
Tyres’ ongoing air pollution target at its Finnish tire factory is to
fulfill the requirements of the environmental permit. The target is
mandatory, as the emissions of volatile organic compounds from
the exhaust gases after the incineration plant may not exceed 20
mg C / m
3
according to the Finnish factory’s environmental permit,
which was renewed in 2025. 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 2025, the volume of VOC emissions was 1.5
mg C / m
3
(1.5 in 2024) after the incinerator in the tire factory in
Finland. Thus, the VOC-related goal was achieved.
In the US, VOC emissions are calculated in accordance with local
legislation and the State-issued minor source air permit. The
calculation is based on established emissions factors and the
quantity of raw materials processed. There is no specific facility-
wide VOC limit; rather, limits are set for individual processes within
the facility. Nokian Tyres targets to stay below the permit limits. In
2024, Nokian Tyres discovered that all VOCs were not accounted
for in the established emissions factors and self-reported this
error to the authorities. Recalculations showed that because of
this error, the air permit limit had been exceeded since 2021, and
in spring 2025, the company received a penalty of $5,700 for the
violation. Nokian Tyres applied for an updated minor source air
permit of the US factory and received it in the fall. In 2025, VOC
emissions from the US factory were 37.5 tons, remaining under the
permit limit.
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In spring 2025, the Tennessee Department of Environment and
Conservation’s Division of Air Pollution Control conducted a
routine regulatory inspection at the US factory. The inspection
noted pressure differential readings on certain baghouses that
were below permit thresholds and identified that tire bladder
production levels had exceeded the limit specified in the facility’s
air permit. These items had been previously identified through
internal compliance monitoring, and corrective actions were
already implemented or in progress at the time of the inspection.
The inspection resulted in a notice of violation and an associated
civil penalty of $15,750. Following the inspection, the facility
worked collaboratively with the regulatory agency, and the
updated air permit reflects appropriate production limits and
removed pressure differential monitoring requirements.
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 that particle emissions are within the limits
set by air permits. At the factory in Romania, the target is that
particle emissions are within the environmental permit limits. All
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 2025, no such incidents
occurred, and the ongoing goal is to prevent any accidental
discharges from Nokian Tyres’ factories into water or soil.
E2-4 Pollution of air, water and soil
Tire and road wear particles
The friction between tires and the road, essential for driver
safety, causes the abrasion of both surfaces. This friction
generates particles, a combination of tire tread fragments and
road surface elements, commonly classified as microplastics
due to their size and composition. While it is not possible to
measure microplastics directly, tire and road wear particles
(TRWP) are a significant concern.
TRWP levels in the environment are influenced not only by tire
design but also by external factors, such as driving behavior, road
conditions, 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-
approved 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-
approval 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 2025, the tire factories used 135,167 tons (116,687 tons in
2024) of raw materials and released approximately 58.9 tons (60
tons) of particle emissions, primarily composed of dust from
used chemicals. The emissions are equivalent to about 0.04
percent (0.05) of the total raw materials used, making particle
emissions minimal.
Company-wide VOC emissions from chemical use totaled 75.7
tons (75.3 tons in 2024).
HAPs (Hazardous Air Pollutants) from the factory in the US
totaled 4.9 tons in 2025 (6.0 tons in 2024). Some of the HAPs
may be on the Annex II of Regulation (EC) No 166/2006 list, but
this has not been analyzed in detail.
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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 as such in tire production. All Nokian Tyres’ products
also meet the EU REACH requirements concerning Polycyclic
aromatic hydrocarbons (PAH). Nokian Tyres’ products do not
contain any conflict minerals.
Nokian Tyres uses chemicals that are classified as hazardous to
the environment and chemicals classified as hazardous to both
health and the environment. There was a human error in 2024
reporting, as the amounts of chemicals were reported under
wrong hazard classes, and one column in the table also had a
wrong header. During 2025, the calculation method has also
been improved to be more precise, as Nokian Tyres’ chemical
experts confirmed that due to the chemical reactions that take
place during the vulcanization of tires, 100 percent of certain
substances of concern turn into other substances. Thus, all data
from 2024 has been restated in the following table.
Substances of concern, main hazard classes
2025 2024
T
Environmental
hazards
Health and
environmental hazards
Environmental
hazards
Health and
environmental hazards
Total amount of substances of concern that are
generated or used during production or that are
procured 2,179.0 136.0 1,870.8 59.0
Total amount of substances of concern that leave
facilities as emissions, as products, or as part of
products or services 2,179.0 58.0 1,870.8 0.3
Leave facilities as air emissions 7.6 0.5 8.1 0.3
Leave facilities as part of products 2,171.4 57.5 1,862.7 0.0
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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
• Guideline for Sustainable Natural
Rubber, Biodiversity and Deforestation
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.
Nokian Tyres is generally well prepared to address sustainability-
related material impacts, risks, and opportunities, including
those related to biodiversity. The company is preparing for
the EU Regulation on Deforestation-free Products. 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. Local and
indigenous knowledge and nature-based solutions have been
incorporated into the EUDR framework.
SBM-3 Considering biodiversity-sensitive areas
The examination of natural diversity and the factors affecting
it started at the Finnish tire factory site in 2016 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.
The assessments are updated as needed, for example if
biodiversity conditions change in the operating sites.
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 asp
(Leuciscus aspius) and the freshwater pearl mussel (Margaritifera
margaritifera). Near the factory in Romania there is a Natura
2000 site, protecting 10 species of the Nature Directives and
one habitat type of the Habitats Directive. Among the protected
species are amphibians, fishes, invertebrates, and a reptile.
During summer 2023, biodiversity risks in Nokian Tyres’ 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 most impactful on biodiversity. Of the 32 sites,
25 are natural rubber farmers and manufacturers, three
metal cord manufacturers, two textile/belt manufacturers,
one oil company, and one chemical manufacturer. Regarding
biodiversity risks, the most important countries for Nokian
Tyres are Indonesia, Thailand, and Ivory Coast. 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 environmental 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 environmental 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 2025, 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
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 relevant environmental laws,
regulations, and permits in their operating countries. The
Supplier Code also emphasizes continuous improvement 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 Guideline for Sustainable Natural Rubber, Biodiversity
and Deforestation (former Sustainable Natural Rubber Policy)
expects the suppliers to share the strive toward a natural rubber
value chain that takes biodiversity and healthy and functioning
ecosystems into account. The guideline’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 Guideline
for Sustainable Natural Rubber, Biodiversity and Deforestation
was updated in 2025 to include more topics related to
biodiversity, deforestation, and the EUDR.
The Guideline for Sustainable Natural Rubber, Biodiversity and
Deforestation 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.
Senior Vice President of Operations in the Management Team is
the most senior executive accountable for the implementation
of the Supplier Code of Conduct and the Guideline for
Sustainable Natural Rubber, Biodiversity and Deforestation.
Together these policies cover the biodiversity and ecosystem
protection at operational sites owned, leased, or managed, and
sustainable land practices. They also address deforestation, but
they do not address the social consequences of biodiversity and
ecosystems-related impacts. All listed policies are available for
the public on Nokian Tyres corporate website
company.nokiantyres.com.
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 “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.
Among other things, the regulation, obliges manufacturers
of tires such as Nokian Tyres to assure that tires shall not be
placed or made available on the market, 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.
During the year, Nokian Tyres continued the work to
ensure compliance with the EUDR regulation. The company
communicated regularly with authorities, suppliers and
customers and nominated an EUDR compliance officer. The
regulation’s application will start on December 30, 2026.
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.
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.
E4-4 Targeting for compliant suppliers and
a sustainable supply chain
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.
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In 2025, the target was achieved as the company maintained
the level of 100 percent of the natural rubber processor
suppliers either being GPSNR members or having signed Nokian
Tyres sustainability commitment.
The most important rubber producing countries for Nokian
Tyres are Indonesia, Thailand, and Ivory Coast. As for impacts on
nature, the primary step in Nokian Tyres’ mitigation hierarchy is
avoidance. No ecological thresholds were applied when setting
the target, and Nokian Tyres did not use biodiversity offsets.
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 has screened the EU’s
Biodiversity Strategy to inform its targets.
Nokian Tyres’ sustainability audit model evaluates the suppliers’
alignment with Nokian Tyres Guideline for Sustainable Natural
Rubber, Biodiversity and Deforestation. 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 Guideline for Sustainable Natural Rubber,
Biodiversity and Deforestation.
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. Thus, Nokian Tyres requires
a commitment from the suppliers to do so. 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 Guideline for Sustainable Natural Rubber, Biodiversity and
Deforestation or be members of the GPSNR.
The 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 rubber
that is imported into the EU and to ensure the no-deforestation
status of the sourced rubber when the application of the
regulation starts.
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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
• Guideline for Sustainable Natural
Rubber, Biodiversity and Deforestation
• Procurement Guideline
• Environmental, Safety, and Quality
Guideline
Nokian Tyres is committed to increasing the share of renewable or recycled
materials in its tires to 50 percent 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
• Guideline for Sustainable Natural
Rubber, Biodiversity and Deforestation
• Procurement Guideline
Nokian Tyres takes into account the products’ 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 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, the
company’s 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 Tyres Europe (formerly 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,
community livelihoods, healthy, functioning ecosystems –
including no deforestation – and respecting all human rights in
natural rubber procurement and production. This is reflected
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
• More extensive use of renewable silica is under investigation
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
Nokian Tyres’ tire materials and their alternatives
in Nokian Tyres Guideline for Sustainable Natural Rubber,
Biodiversity and Deforestation (former Sustainable Natural
Rubber Policy), which is aligned with the GPSNR’s policy
framework. The guideline was updated in 2025 to include more
topics related to biodiversity, deforestation, and the EUDR.
In Nokian Tyres Management Team, the Senior Vice President,
Operations is accountable for the implementation of the
policy.
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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 a
hundred different raw materials, and sustainability is a key
consideration in assessing their environmental impact. Recycled
and renewable materials are particularly valued for their
sustainability.
Introducing ISCC PLUS-certified raw materials
The factory in Finland obtained the International Sustainability
and Carbon Certification (ISCC) PLUS in 2024 and the factory in
Romania in 2025. The certification applies to the manufacturing
of passenger car tires at these factories.
Through the certification, Nokian Tyres is able to utilize ISCC
PLUS-certified raw materials in its tires, which is an important
step in reaching the long-term target of increasing the share
of renewable or recycled raw materials in tires to 50 percent by
2030. Additionally, the certification makes it possible to trace
the use of certified raw materials from sustainable sources.
Nokian Tyres introduced the ISCC PLUS-certified raw materials
in spring 2025 when new flagship products were launched.
Nokian Tyres Seasonproof 2 contains up to 38 percent recycled
and renewable raw materials, of which 2 percent are ISCC PLUS
mass balance approach certified from bio-based, bio-circular
and/or circular feedstock.
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 materials 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 but not
exclusively introduced through new product launches. The
development of high-performance and sustainable tires
requires active collaboration with raw material suppliers,
research institutes, and other stakeholders.
One example of a recycled filler is rubber retrieved from used
tires. Additionally, Nokian Tyres has extensively researched the
use of recycled 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.
In parallel, the company is exploring renewable alternatives
to traditional fillers, such as silica derived from rice husk
ash. This bio-based silica offers a sustainable substitute for
conventional, fossil-based silica, with comparable performance
characteristics in terms of tire properties. Utilizing rice husk
silica not only reduces the environmental footprint of tire
production but also supports circular economy principles by
valorising agricultural waste. Nokian Tyres continues to evaluate
the integration of renewable silica into its material portfolio,
aiming to enhance sustainability without compromising safety
or performance.
Nokian Tyres researches UPM BioMotion™ RFF to replace some
fossil-based materials in tire production. This renewable
material aims to further increase sustainability in the tire
industry, while it lowers carbon emissions in tire manufacturing.
Nokian Tyres launched the FUTUREPROOF research, development
and innovation program in March 2025. Together with the
program ecosystem partners Nokian Tyres aims to confront the
key challenges of future mobility through innovations related to
digitalization, sustainability, and manufacturing. The program is
funded by Business Finland. The program consists of four streams
with the Sustainable Tire Lifecycle stream focusing on sustainable
materials. This stream supports Nokian Tyres' target to increase
the share of recycled and renewable materials in tires to 50 percent
by 2030 with intensive R&D effort, ecosystem collaboration, and
co-innovation projects exploring bio-based alternatives to fossil-
based materials and circular economy solutions. By innovating
new materials into tire design and production, FUTUREPROOF also
supports Nokian Tyres’ climate goals.
To support in-house research activities, Nokian Tyres currently
participates 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. The company
also participates in Bioboost co-innovation project, which is led
by VTT, a research organization owned by the Finnish state, and
funded by Business Finland. The project focuses on developing a
technically and economically viable kraft lignin refining concept
that enables the creation of new business opportunities.
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 continues actively searching for new collaboration
opportunities for the coming years.
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Tire retreading lowers tires’ carbon footprint
Vianor’s retreading units provide services for trucks, buses,
and heavy machinery. Retreading tires offers fleet operators
significant savings in costs, resources, and environmental
impact, because 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
Nokian Tyres actively supports tire recycling initiatives, especially
in countries where the company has tire factories. In Finland,
Nokian Tyres is a founding member of the Finnish Tyre Recycling
initiative. In the US, Nokian Tyres is a member of the U.S. Tire
Manufacturers Association (USTMA), promoting the centralized
collection and efficient reuse of tires nationwide. In Romania,
Nokian Tyres joined Eco Anvelope S.A. in the beginning of 2026.
In Europe, each country has a different tire recycling system.
In some countries, manufacturers and importers are involved
in the recycling organizations, but usually tire dealers are the
counterpart for the recycling companies. Tire recycling in Finland
has reached 100 percent, ensuring that a plentiful supply of raw
materials is available for diverse recycled material applications. In
mainland Europe, the recycling rate has been over 90 percent in
recent years and in the US around 80 percent.
In 2025, Nokian Tyres achieved a 94 percent (92% in 2024)
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.
Managing waste
Nokian Tyres’ tire production and the company’s support
functions 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 thus 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.
To further support circular economy, Nokian Tyres aims to
ensure that 100 percent of tire production waste continues
to be utilized, with zero production 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 2025, the target was again achieved.
E5-4 Resource inflows
Respect for the environment is part of the company’s product
development philosophy.
In 2025, Nokian Tyres used a total of 158,979 tons (145,835 tons
in 2024) 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
renewable and recycled raw materials to 50 percent by 2030
focuses on external renewable or recycled feedstock, and not
internal waste. In 2025, the share of recycled materials was 2.9
percent (0.8%) and the share of renewable raw materials was
25.4 percent (24.2%) 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.
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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.
At the moment, a common rating system for assessing tire
repairability does not exist.
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 regulations and standards.
Therefore, a retreaded tire is comparable 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. Tire retreading requires
high-quality tire frames so that the tread of the old tire can be
replaced with a new one.
High-quality tire frames can be retreaded 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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SOCIAL
INFORMATION
S1 Own workforce 97
S2 Workers in the value chain 110
S4 Consumers and end users 117
S1 Own workforce
SOCIAL INFORMATION
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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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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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 2025, the company employed a
total of 3,959 (+3.9%) employees with different skills and
backgrounds. These included employees on extended leaves of
absence. Nokian Tyres’ workforce is located primarily in Finland,
the US, Romania, 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 strategy includes the
commissioning of the new production facility in Romania. The
recruitment of some 550 employees for the tire factory moved
forward in 2025, and the ramp-up of the operations proceeded
and tire deliveries started according to plan. At the end of 2025,
the company employed a total of 527 employees in Romania.
During the last quarter of 2025, Nokian Tyres had personnel
negotiations to improve its financial performance and
operational efficiency. The negotiations involved white-collar
employees in Group functions and in all Nokian Tyres business
units in all countries as well as blue-collar and white-collar
employees in passenger car and heavy tire production in Nokia,
Finland. The negotiations lead to termination of 35 permanent
white-collar positions in Finland. In addition, restructuring
of tasks took place. The adjustment measures also include
temporary layoffs of approximately 650 blue-collar and white-
collar employees in passenger car and heavy tire production in
Nokia, Finland for a maximum period of 90 days per person by
the end of 2026. Negotiations or other necessary processes
were carried out in other countries in accordance with local
legislation.
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 temporarily by approximately 500–700 employees.
During 2025, a total of 1,388 seasonal employees were employed
in the Nordics at Vianor.
By the end of 2025, there were 306 (342 in 2024) non-
employees, the majority of whom (249) 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 organization but whose work is
managed and overseen by the company.
People topics are integral to Nokian Tyres’ strategy
People-related topics are integral to the planning and
implementation of Nokian Tyres’ strategy, 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 the
Nokian Tyres Team serving as a central part of the 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 environment, 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
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 presented 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 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 covering the company’s whole value chain, however
the main focus was on its own personnel. The company also
planned measures to minimize risks and impacts. Nokian Tyres
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has also defined a human rights due diligence (HRDD) process.
If any impacts are identified, they are measured and needed
actions are taken. In 2025 the human rights impact assessment
was updated.
In addition to respecting human rights, the organization
commits to treating all individuals equally. 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
trafficking, 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.
Every employee must adhere to the Code of Conduct,
and Nokian Tyres’ President and CEO is accountable for its
implementation.
The company provides mandatory training on the Code of
Conduct for all personnel, which is included in the induction of
new employees. At the end of 2025, 80 percent of personnel had
completed the training.
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 association 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,
performance 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
President and CEO is accountable for its implementation.
Nokian Tyres’ Safety Management Model
Nokian Tyres’ Safety Management Model serves as the major
guideline for safety management and leadership. It specifies
the company’s safety management system, describes the
company mindset, and sets the bar for common practices for
safety work that all Nokian Tyres’ employees, non-employees,
and contractors must maintain. This global model has been
implemented as part of local practices, procedures and
everyday decision making. Nokian Tyres’ Safety Management
Model also provides tools across 16 areas of safety for
continuous improvement for departments and operations.
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Safety development work is run by utilizing the Safety
Management Model, self-assessments, audits, safety
talks, and operations’ own development plans. The Safety
Management Model emphasizes the importance of safety
ownership on the department level.
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’ operations, 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
provides 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 for the personnel
on the company’s 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’
eLearning 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
development with their skills and ideas, aligned with the
organization’s commitment to sustainable business practices.
To share information on financial performance, business
development, safety, strategy, vision, values, and other key
topics, Nokian Tyres hosts various employee events. During
these events, employees 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.
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 and Outlook, digital signage, and both virtual and
in-person meetings, are used to ensure that employees
stay well informed about relevant company developments.
The channels also provide opportunities for feedback and
engagement.
Additionally, Nokian Tyres’ global safety reporting tool can
be accessed by all own employees, rental workers, partners
and contractors, and it enables them to participate in safety
initiatives. The tool is used to evaluate work-related risks,
report accidents, incidents, and safety observations, as well as
to investigate and manage safety-related corrective actions. It
also supports safety leadership through dashboards.
In the Nordic countries, local management and HR hold regular
meetings with workers’ representatives. The frequency
of those meetings varies based on the country and legal
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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. Nokian Tyres also works
directly with its own workforce in North America.
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 solutions 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, 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 2025 was 80 percent.
The Code of Conduct is available on the corporate website
company.nokiantyres.com. 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 conduct that violates the
company’s business principles, including the Code of Conduct
or Privacy 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 the internal communications survey in 2024, 74
percent of Nokian Tyres’ employees feel that they can talk
openly about the development of work or related concerns, as
well as possible mistakes or failures.
Legal function coordinates the whistleblowing process and related
investigations. All whistleblowers are protected against any form
of retaliation. Anonymous reports are treated with the same level
or importance as named reports. All material findings and general
statistics are reported to the Audit Committee and the People and
Sustainability Committee of the Board of Directors.
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 training, 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 responsible 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. In
2025, the 360 tool was further developed for leaders to get
feedback on their leadership skills and development needs.
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 eLearning platform further
supports these advancements. In 2025, the platform was
upgraded to serve users even more efficiently, for example by
sending notifications about mandatory eLearning courses.
Fostering employee engagement and professional
growth
In 2025, the company started to conduct regular global pulse
surveys, and several townhall meetings were organized to
increase dialog between employees and management. Nokian
Tyres also continued Leadership Growth Track, a training
program for 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 delivers positive impact
through improved motivation, skills, and career development
opportunities.
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Total Rewards Philosophy and Guideline emphasizes
equity and fairness
Nokian Tyres’ Total Rewards Philosophy and Guideline clarifies
the principles behind total rewards and supports managers
in making fair and consistent pay decisions. By fostering
transparency, employees can better understand the company’s
rewards system, which helps to promote motivation and
engagement. In 2025, the focus was on reward training during
the last quarter, and it will continue during 2026 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 occupational 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
safety reporting tool. 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.
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 location, and all functions. The aim is 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
developing leadership and continuously promotes a culture of
equal opportunities. In 2025, caring was highlighted as a main
theme for events, activities and communications as “We care” is
one of the company’s values and leadership principles. The aim
was to strengthen the culture of caring at the individual level, in
leadership, and in teams.
The company monitors the effectiveness of its initiatives through
its annual employee survey. 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 a link available on the company intranet.
All responses are anonymous and confidential, and teams then
discuss the findings and agree on the actions they will commit
to. In 2025, the survey included 19 questions, with two questions
focusing on well-being, as well as one open-ended question.
Nokian Tyres also continued reviewing people processes and
enhancing its eLearning platform and internal 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.
Line managers monitor and respond to impacts on Nokian Tyres’
employees through people processes, such as performance
reviews and one-on-one discussions.
Nokian Tyres 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
Nokian Tyres engages directly with its own workforce in
sustainability target setting 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, Sustainability
Steering Group, and Occupational Safety Committees in
Finland and Romania. Nokian Tyres’ management sets specific
goals, monitors their implementation, and reserves sufficient
resources to meet and maintain them.
Nokian Tyres pursues non-financial targets that are embedded
throughout its core operations. Nokian Tyres informs employees
about performance against the personnel-related sustainability
targets by organizing yearly sustainability info sessions and
quarterly employee info sessions. Performance is also handled
in management and team meetings, sustainability steering
groups, and other follow-up mechanisms based on projects to
ensure information flow.
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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 safety reporting tool. All employees
have a role in safety development.
Targets related to Nokian Tyres’ workforce
In 2025, Nokian Tyres had the following targets:
• 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. Result: 30 percent. Training will continue
in 2026.
• Improve job rotation, such as percentage of transfers and
promotions. Base was measured in 2025. Result: 16 percent.
This will be followed as an internal KPI.
• Continuous improvement of the sentiment of equal
opportunities, related to Drive! survey question “Regardless
of background, everyone at our company has an equal
opportunity to succeed, baseline 2021: 65. Result in 2025: 64.
• Decrease lost-time incident frequency (LTIF) from 8.3 (2018)
to 1.5 by 2025. In 2025, the group-wide LTIF improved to
3.7 (4.6 in 2024) but the target was not achieved. After
setting the target, there have been significant changes in
operations, which affected the realization.
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 the reporting period on December 31, 2025. In Financial
Statements the figures are shown in the note 8: Personnel
expenses.
At the end of 2025, the company employed a total of 3,959
employees with 1,694 being white collars and 2,265 being blue
collars. Among the blue collars, 86 percent were male, and 14
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 2025, Nokian Tyres employed a total of 1,388
seasonal employees in the Nordics at Nokian Tyres’ Vianor tire
and car service chain.
The 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 denominator used is the number of headcount at the
end of the reporting period.
Employee headcount by gender
Number of employees (headcount)
by gender 2025 2024
Male 3,175 3,080
Female 784 730
Other* 0 0
Not reported 0 0
Total Employees 3,959 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
Number of employees (headcount)
by country 2025 2024
Finland 1,716 1 ,770
US 567 606
Romania 527
Norway 525 526
Sweden 418 426
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Employees by contract type, broken down by region (headcount)
2025 2024
Nordics Other Europe North America Total Nordics Other Europe North America Total
Number of employees 2,659 721 579 3,959 2,722 470 618 3,810
Number of permanent employees 2,503 718 579 3,800 2,548 466 618 3,632
Number of temporary employees 156 3 0 159 174 4 0 178
Number of non-guaranteed hours employees 23 0 0 23 49 0 0 49
Number of full-time employees 2,543 710 579 3,832 2,613 460 618 3,691
Number of part-time employees 116 11 0 127 109 10 0 119
Turnover
2025 2024
Nordics Other Europe North America Total Nordics Other Europe North America Total
Number of terminated employees 227 178 177 582 240 55 131 426
Turnover rate 9 25 31 15 9 12 21 11
Number of terminated employees includes employee who have left voluntarily or due to dismissal, retirement, or death in service during the reporting period. In calculating the turnover rate, the denominator used is the number of headcount at the
end of the reporting period.
Employees by contract type, broken down by gender (headcount)
2025 2024
Female Male Other
Not
reported Total Female Male Other
Not
reported Total
Number of employees 784 3,175 0 0 3,959 730 3,080 0 0 3,810
Number of permanent employees 760 3,040 0 0 3,800 703 2,929 0 0 3,632
Number of temporary employees 24 135 0 0 159 27 151 0 0 178
Number of non-guaranteed hours employees 1 22 0 0 23 3 46 0 0 49
Number of full-time employees 742 3,090 0 0 3,832 693 2,998 0 0 3,691
Number of part-time employees 42 85 0 0 127 37 82 0 0 119
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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 2025, there were 306 (342 in 2024) non-employees, most of
them private employment agency workers (249), working in the
Finnish factory production. Non-employee figures are reported
in headcount at the end of the reporting period on December
31, 2025.
S1-8 Collective bargaining coverage and social
dialogue
63 percent (67% in 2024) percent of Nokian Tyres’ employees
were covered by collective bargaining in 2025.
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, 2025.
Collective bargaining coverage and social dialogue
Collective Bargaining Coverage Social dialogue
Coverage rate
Employees – EEA
(for countries with > 50 empl. repre-
senting > 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% Romania North America
20–39%
40–59%
60–79% Norway
80–100% Finland, Sweden Finland, Sweden, Norway
Romania was added in 2025, as there are more than 50 employees representing > 10% of all employees. There haven’t been any other changes compared to the
data reported from 2024.
Gender distribution at top
management level 2025 2024
Number of females 2 4
Number of males 7 5
Percentage of females 22 44
Percentage of males 78 56
Distribution of employees
by age group 2025 2024
Number of under 30 years old 732 653
Number of 30–50 years old 2,162 2,137
Number of over 50 years old 1,065 1,020
Percentage of under 30 years old 18 17
Percentage of 30–50 years old 55 56
Percentage of over 50 years old 27 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 are targeted to all employees,
and they focus on managing performance and employees’
personal development. 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
2025 2024
Female 94 90
Male 91 87
Blue collar 92 82
White collar 92 91
Total 92 88
Average training hours per employee
2025 2024
Female 8.5 8.1
Male 7.1 4.8
Blue collar 6.1 3.7
White collar 9.1 7.5
Under 30 5.1 3.2
30–50 8.5 6.4
Over 50 6.6 4.9
Total 7.4 5.4
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S1-14 Health and safety metrics
The entire Nokian Tyres workforce, including non-employees,
is covered by the company’s Safety Management Model, which
is based on legal requirements and recognized standards. The
entire workforce can also utilize the 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.
Functions are audited according to an internal audit plan to
ensure compliance with the Safety Management Model and
other internal procedures.
In 2025, 647 days (450 in 2024) 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.
Lost-time incident frequency (LTIF) *
2025 2024
Nokian Tyres Finland 1.8 1.0
Nokian Tyres US 2.4 2.5
Nokian Tyres Romania 5.9 3.9
Vianor 5.7 8.9
Nokian Tyres Group 3.7 4.6
*Number of lost-time incidents / 1,000,000 hours worked.
Total recordable injury frequency (TRIF)*
2025 2024
Nokian Tyres Finland 6.6 8.0
- Own employees 4.6 7.5
- Non-employees 16.6 10.6
Nokian Tyres US 12.9 13.4
Nokian Tyres Romania 8.2 3.9
Vianor 11.4 15.4
Nokian Tyres Group 9.2 11.3
*Number of recordable injuries / 1,000,000 hours worked.
Number of recordable injuries
2025 2024
Nokian Tyres Finland 19 23
- Own employees 11 18
- Non-employees 8 5
Nokian Tyres US 16 16
Nokian Tyres Romania 7 1
Vianor 38 52
Nokian Tyres Group 80 92
Occupational illness frequency (OIFR)*
2025 2024
Nokian Tyres Group 1 0.8
*Work-related ill health cases / 1,000,000 hours worked.
Number of cases of recordable work-related ill health of
employees
2025 2024
Nokian Tyres Group 8 6*
*Due to a human error, the number of cases of recordable work-related ill
health of employees was reported to be 17 in the Sustainability Statement
2024. The correct number of cases was 6.
Number of fatalities as a result of work-related injuries and
work-related ill health
2025 2024
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
2025 2024
Nokian Tyres Group 647 450
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 to help ensure fair and equal
treatment of employees across the organization.
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 types of incentives.
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At Nokian Tyres, base salary setting follows collective
agreements as well as local market practices based on defined
job architecture. 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 average earnings per share (EPS), average return on
capital employed (ROCE%), and reduction of Scope 1 and 2 CO
2
e
emissions intensity. The CO
2
e 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 2025, 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 company performance and reward
achievement at various levels, such as Group, business unit, or
team.
S1-17 Incidents, complaints and severe human
rights impacts
During 2025, 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 (0 in
2024). This includes incidents of harassment as a specific form
of discrimination. Zero (0) 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 (0).
There were no fines, penalties, and compensation for damages
as result of such incidents during 2025 or 2024.
Remuneration metrics
2025 2024
Gender pay gap
1
6.2 0.6
Total remuneration ratio
2
26.6 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.
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S2 Workers in the value chain
SOCIAL INFORMATION
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
• Nokian Tyres Guideline for Sustainable
Natural Rubber, Biodiversity and
Deforestation
• 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 a
sustainable way of conducting business integrated into its
strategy. As a tire manufacturer, 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. Promoting 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, Vietnam,
and Ivory Coast. In Malaysia, migrant workers have been
identified as a particularly vulnerable group. Over the years,
a common issue identified during the audits has been the
language and content of the employment contracts, but also
other non-conformities have been observed.
One of Nokian Tyres’ 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. Nokian Tyres is
also a member of the Global Platform for Sustainable Natural
Rubber (GPSNR), a platform in which different natural rubber
stakeholders participate and where the views of value chain
workers are presented as well.
Additionally, audits have been conducted at Nokian Tyres'
manufacturing partners located at areas where there can be
sustainability-related risks. 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 sustainability 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 corporate website company.nokiantyres.com.
The company also has a Guideline for Sustainable Natural Rubber,
Biodiversity and Deforestation. In Nokian Tyres Management
Team, the Senior Vice President, Operations 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. Nokian Tyres expects the same
commitment from its suppliers.
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
maintaining 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 sourcing/procurement. The company expects the
same from its suppliers.
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Over the years, a common issue identified during the audits
has been the language and content of the employment
contracts. In several cases, the records of working hours, rest
times and holidays have been missing or were 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. The findings are further
discussed under S2-4.
Assessing suppliers to detect and minimize risks
Nokian Tyres’ supply chain consists of over 3,700 suppliers,
including more than 200 raw material suppliers. Most of the
supply chain suppliers are located around the factory areas, and
raw material 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 (environmental, social and 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.
ADDITIONAL, NON-MATERIAL INFORMATION
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/fakta-om-bedriften/apenhetsloven and www.vianor.
no/bedriftskunder/om-oss/apenhetsloven, respectively.
(Norwegian Transparency Act 2021, Section 5 Duty to
account for due diligence)
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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
Critical Not critical
Supplier risk management process
Risk mitigation plan
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Supplier Screening 2025 Percentage
1.1 Total number of unique suppliers 3,868
1.2 Number of unique significant suppliers 47
1.3 Number of unique significant suppliers supported with
development measures (as a subset of 1.2) 12
% of suppliers supported in
development measures: 0.3
1.4 Number of unique significant suppliers assessed via desk
assessments/on-site assessments (as a subset of 1.2) 13
% of unique significant
suppliers assessed: 27.7
1.5 Number of unique significant suppliers assessed with substantial
actual/potential negative impacts (as a subset of 1.4) 13
1.6 Number of unique significant suppliers with substantial
actual/potential negative impacts with agreed corrective action/
improvement plan (as a subset of 1.5) 6
% of suppliers with substantial actual/
potential negative impacts with agreed
corrective action/improvement plan: 46.2
1.7 Number of unique significant suppliers with substantial actual/
potential negative impacts that were terminated (as a subset of 1.5) 0
The table includes both tier 1 and non-tier1 suppliers. Tier 1 suppliers directly supply goods, materials or services to Nokian Tyres. Non-tier 1 suppliers provide
their products and services to the company through tier 1 suppliers.
Significant suppliers are suppliers identified as having substantial risks of negative ESG impacts or significant business relevance to the company or a
combination of both.
(S&P Global CSA: Supply Chain Management)
ADDITIONAL, NON-MATERIAL INFORMATION 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 hectares 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, fully aligned with the policy framework of the GPSNR.
In 2025, the policy was updated to include more topics related
to biodiversity, deforestation, and the EUDR, and its name was
changed to Nokian Tyres Guideline for Sustainable Natural
Rubber, Biodiversity and Deforestation.
The Senior Vice President of Operations in the Management
Team is the most senior executive accountable for the
implementation of the Guideline for Sustainable Natural Rubber,
Biodiversity and Deforestation.
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
manufacturer, 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, Vietnam, and Ivory Coast. 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
deforestation and biodiversity loss due to converting natural
forests into natural rubber farms. Therefore, it is considered
a high sustainability risk sector.
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The company’s sustainability in natural rubber is developed
through the framework of this guideline. The guideline is
publicly available on the Nokian Tyres corporate website
company.nokiantyres.com, 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 2025, 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 Guideline
for Sustainable Natural Rubber, Biodiversity and Deforestation.
Nokian Tyres 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.
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 information 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 2025.
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 Guideline for Sustainable Natural
Rubber, Biodiversity and Deforestation (formerly Nokian Tyres
Sustainable Natural Rubber Policy).
Nokian Tyres exclusively purchases rubber processed in
the plants that the company has approved. In 2025, 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-
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rated suppliers on a three-year cycle. The target is to maintain
this level, which drives the minimum level of sustainability 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.
Over the years, a common issue identified during the audits has
been the language and content of the employment contracts.
The contract is not necessarily 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 were 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 has been
a problematic 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 did not identify severe labor rights issues during
2025.
All Nokian Tyres’ relevant manufacturing partners have also
been audited by a respected third-party auditing agency, partly
supplemented by Nokian Tyres’ own on-site audits. The audits
have included quality audits based on ISO 9001, environmental
audits based on ISO 14001, and social responsibility audits
based on SA 8000 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.
Procurement function and the sustainability department
share the responsibility 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 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.
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 2025 the most important KPIs were the following:
• At least 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 2026, Nokian Tyres aims to uphold the status of 100
percent of natural rubber processor suppliers either being
GPSNR members or having signed Nokian Tyres sustainability
commitment.
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S4 Consumers and end users
SOCIAL INFORMATION
Material topic in
Nokian Tyres’ context Impact, risk, opportunity
Policy or work
instruction Management
Health and safety • Positive impacts by improving traffic and end
user safety
• Environmental, Safety, and Quality
Guideline
• Code of Conduct
• Testing policies
Nokian Tyres is committed to continuously improving the quality and safety of its
products, services, and processes.
Nokian Tyres’ operations are consumer-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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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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SBM-3 Committed to continuous improvements
in quality and safety
Creating the safest tires for all conditions is an essential part
of Nokian Tyres’ strategy and business model. Consumers
today demand high-quality, safe, and environmentally
sustainable products. Nokian Tyres is committed 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 sustainable, 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.
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 premium
tires that exceed expectations.
Nokian Tyres positively impacts road and end user safety in
two key ways. First, the company 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, maintain them correctly,
and assess their tire condition effectively.
Nokian Tyres’ vision is to lead the world to drive smarter. To raise
consumer and end user awareness with regular educational
outreach, Nokian Tyres offers 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 have opted
in or are existing customers. Nokian Tyres and Vianor also share
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 ja consumers through clear, fact-based
sustainability communications and marketing. Proactive and
innovative communication enhances brand reputation and help
drive increased revenue.
Personal data protection
Nokian Tyres processes 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 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 avoids
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. Nokian Tyres has established
channels for seeking proper remediation. If a personal data breach
takes place, the company will notify local supervisory authorities
and affected individuals in accordance with applicable laws.
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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. The Environmental, Safety, and Quality
Guideline received minor updates in 2025, consisting of small
additions and wording adjustments based on customer needs.
Rigorous testing policies and standards
In addition to adhering to Nokian Tyres’ Code of Conduct and
Environmental, Safety, and Quality Guideline, the product
development 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
Organisation (ETRTO), Nokian Tyres actively participates in
global standardization and regulatory efforts. In addition,
products of Nokian Heavy Tyres are designed according to
ETRTO standards.
Currently, Nokian Tyres contributes to the European Tyre and
Rim Technical Organisation’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
important to Nokian Tyres. The company is fully committed to
data protection, 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 requirements for personal data processing. The
Data Protection Policy was revised in spring 2025 to include
clarifications regarding roles and responsibilities in relation to
data protection.
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 the company’s approach
to marketing and communications, focusing on effective
engagement with stakeholders, including consumers and end
users. It promotes reliable, balanced, and timely communication,
ethical marketing practices, and the provision of truthful
information.
Oversight and implementation
Regarding the Data Protection Policy, the Board of Directors
is accountable for the data protection governance and the
management capabilities and their effectiveness. The President
and CEO oversees application and monitors the performance of
the data protection governance model. The heads of commercial
organizations and heads of functions are accountable for
implementation of data protection principles within their area
of responsibility, assigning and allocating sufficient resources
to implement data protection principles and to manage risks,
ensuring an appropriate level of data protection awareness of
the employees, and identifying and complying with laws and
regulations affecting data protection in their area of responsibility.
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
has been approved by a member of Nokian Tyres’ Management
Team.
All policies relevant to consumers and end users are publicly
accessible on Nokian Tyres corporate website
company.nokiantyres.com.
S4-2 Engaging with end users
At Nokian Tyres, premium quality means premium class safety.
The company has maintained a 24-year track record without
significant product recalls.
Nokian Tyres’ primary customers are tire dealers and other
intermediaries who sell the tires to end users. Nokian Tyres has
direct engagement with customers, gaining insight from end
users through them.
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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.
In addition, Nokian Heavy Tyres (NHT) personnel trains
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 this engagement is the Management Team
member responsible for Heavy Tyres.
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 respondent 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 Vianor’s customers buying services.
S4-3 Processes to remediate negative impacts
If Nokian Tyres identifies a material negative impact on
consumers and end users due to compromised customer
privacy from inadequate cybersecurity measures, the company
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 websites,
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’ main offices via various channels, including
info@nokiantyres.com.
For unresolved concerns or significant issues, such as suspected
infringements, reports can be made through the whistleblowing
channel, also anonymously.
The Code of Conduct, available on the corporate website
company.nokiantyres.com, includes instructions for using
the whistleblowing channel. Nokian Tyres’ policies protect
individuals from retaliation when raising concerns about a
misconduct, 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’ awareness and trust toward these
structures and processes.
S4-4 Taking action to manage impacts and pursue
opportunities
In 2025, 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
responsibilities 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
corporate sustainability communications and collaborate with
business area marketing teams to develop educational content.
Increasing awareness on data protection
In 2025, Nokian Tyres renewed its data protection governance
model and conducted a review of the data subject rights
process. As part of these initiatives, the revised processes were
communicated, and relevant employees were provided with
targeted training.
In 2025, Nokian Tyres took measures to increase the completion
rate of mandatory data protection eLearning course among
employees whose work may include processing of personal
data. The mandatory eLearning course must be renewed at
two-year intervals, and managers are responsible that their
team members complete the course.
Data protection management activities are structured in
annual cycles, with planned actions outlined for each quarter of
the year.
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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.
Nokian Tyres uses high-quality raw materials to ensure the
safety and premium quality of its tires. Each raw material is
rigorously tested and studied, while the rubber compounds
are continuously improved. Process controls are implemented
throughout production to guarantee 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.
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 acceleration, 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.
Nokian Heavy Tyres also promotes safety and sustainability
through innovations such as Intuitu smart tire technology,
which provides real-time data on tractor tire pressure and
temperature to help optimize performance, extend tire life, and
enhance operational safety.
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 efficiency, wet grip,
and pass-by noise levels. The labeling values provide reliable
and transparent information to consumers and end users to
evaluate different products.
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 technical manuals, for all customers
and consumers on NHT’s website.
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
ABC
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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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.
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.
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. Consumer
newsletters also provide regular updates on these subjects.
Additionally, Vianor regularly communicates tire and traffic
safety information to both B2C and B2B end users in the
Nordics.
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 communicates sustainability topics regularly
with external stakeholders, including consumers and
end users. The communication handles sustainability
innovations, achievements, and actions that demonstrate the
company’s leadership in sustainability, which can influence
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
websites, press releases, and social media, Nokian Tyres aims to
provide consumers and end users with clear, fact-based insights
into how the company and 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.
In 2025, Nokian Tyres also launched a new sustainability
communication concept and campaign under the theme “About
Time”, highlighting the company’s ambitious sustainability
work and targets and that timing matters: whether it is about
selecting the safest tires for your vehicle, cutting emissions
from tire manufacturing, or switching to smarter materials,
there is no such thing as too early but there is a too late. The
campaign’s landing page and more information is available at
company.nokiantyres.com/about-time/.
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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 consumers 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
consumers’ and end users’ 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 selected
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 target was that all of Nokian Tyres
Hakkapeliitta products meet the EU ice grip requirements by
2025, which 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 in the selected scope 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. This target was
achieved in 2025. 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 126
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
• Guideline for Sustainable Natural
Rubber, Biodiversity and Deforestation
• 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 90 days net. The payment terms are reconsidered when
necessary in the case of, e.g., smaller suppliers.
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.
GOVERNANCE INFORMATION
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G1-1 Corporate culture and business conduct
policies
Nokian Tyres’ operations are guided by ethical principles defined
in the company’s Code of Conduct, approved by the Board of
Directors and available on the corporate website
company.nokiantyres.com. The Code of Conduct provides clear
instructions on responsible business conduct, including anti-
bribery and compliance measures.
At the core of Nokian Tyres’ corporate culture is a comprehensive
compliance framework, which consists of key policies reviewed in
regular intervals by the Board of Directors and the Management
Team. These include ethical policies such as the Code of Conduct,
Anti-Bribery and Conflict of Interest Code of Conduct, Data
Protection Policy, and Supplier Code of Conduct as well as financial
policies such as Tax Policy and Enterprise Risk Management Policy.
Together, these policies define the principles and operational
guidelines that steer Nokian Tyres’ business and ensure integrity,
transparency, and compliance across organization.
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 a Whistleblowing
Policy in place, approved by the Board of Directors. The company
has had a whistleblowing channel since 2011, and it is also
available to external stakeholders on the corporate website
company.nokiantyres.com. The company utilizes whistleblowing
service provided by an external third party.
All messages received in the channel are encrypted and handled
confidentially. Anonymous reports are allowed. To ensure
anonymity of individuals submitting whistleblower reports, the
external service provider automatically deletes all metadata,
including IP addresses. This guarantees that the whistleblower
remains anonymous throughout any subsequent dialogue with
the designated recipients 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
whistleblowing 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. If an
investigation reveals that an employee has acted contrary to
Nokian Tyres business conduct policies, it may lead to corrective
or disciplinary actions, termination of employment, and if
necessary, to a report to the relevant authorities. 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 2025, no compliance breaches were found (0 in 2024) 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.
On April 10, 2025, the Helsinki Court of Appeal issued a
judgment in securities market information offence of Nokian
Tyres plc and its former President and CEO.
Protecting whistleblowers and training the employees
Reports of suspicions concerning illegal activity at Nokian
Tyres or infringements of Nokian Tyres’ Code of Conduct or
other guidelines may be submitted anonymously. Reports sent
via the whistleblowing channel are processed by Nokian Tyres’
whistleblowing 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.
Personal data and other information entered into the
whistleblowing system is handled with absolute confidentiality
and in the manner required by the applicable privacy legislation.
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.
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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 eLearning, 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.
Internal Audit
Nokian Tyres Group’s Internal Audit was outsourced in 2024. The
outsourced 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 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 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.
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 procurement 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 Guideline for Sustainable Natural
Rubber, Biodiversity and Deforestation. They are discussed
in more detail under the topic “Workers in the value chain”.
The Senior Vice President of Operations is accountable for the
implementation of these supply chain related policies.
Nokian Tyres checks the backgrounds of all new suppliers
according 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 additionally
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 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.
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 development and business opportunities
early on and create competitive business conditions that are
sustainable over the long term.
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Membership fees and interest representation
Euros 2025 2024
Political funding and in-kind giving provided to
parties and politicians, and spending related
to ballot measures or referendums 0 0
Three largest membership fees of trade associations, including industry associations and business associations:
U.S. Tire Manufacturers’ Association (USTMA)
403,157
U.S. Tire Manufacturers’ Association (USTMA)
322,604
Tyres Europe (formerly ETRMA)
117,747
Tyres Europe (formerly ETRMA)
109,939
Finnish Rubber Manufacturers’ Association
113,034
Finnish Rubber Manufacturers’ Association
104,415
Membership fees of trade associations (total) 1,053,129 882,925
Largest contributions for particular topics:
Tyres Europe: Tyre Abrasion Validation
189,341
Tyres Europe: Tyre Abrasion Validation
236,720
ETRTO: Indoor drum method
48,153
Total contributions for lobbying and interest
representation 251,831 388,714
G1-6 Payment practices
The standard payment term in Nokian Tyres’ general terms and
conditions for purchases is 90 days net. In the case of smaller
suppliers, for example, the payment terms are reconsidered
when necessary. In 2025, 93 percent (85% in 2024) of the
invoices were paid aligned with the standard terms.
In 2025, the average time it takes to pay an invoice, starting
from the date when the contractual or statutory payment term
begins, was 49 (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 2025, there were no
outstanding legal proceedings for late payments.
In 2025, the company’s membership fees for trade associations
and contributions to lobbying activities totaled 1,304,960
euros (1,271,640 in 2024) globally. The three largest fees were
paid to the U.S. Tire Manufacturers’ Association (USTMA), Tyres
Europe (formerly ETRMA) and Finnish Rubber Manufacturers’
Association.
The biggest contribution for a specific topic was related to tire
abrasion. The tire abrasion validation project is related to Nokian
Tyres’ material impact regarding pollution, as the project aims for
reducing road transport emissions by setting global tire abrasion
limits that are based on a reliable tire test method. There were no
other significant topic-specific contributions in 2025.
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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 39
GOV-1 – The role of the administrative, management and supervisory bodies 40
GOV-2 – Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies 42
GOV-3 – Integration of sustainability-related performance in incentive schemes 42
GOV-4 – Statement on due diligence 43
GOV-5 – Risk management and internal controls over sustainability reporting 43
SBM-1 – Strategy, business model and value chain 44
SBM-2 – Interests and views of stakeholders 46
SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 49
IRO-1 – Description of the process to identify and assess material impacts, risks and opportunities 58
IRO-2 – Disclosure requirements in ESRS covered by the undertaking’s sustainability statement 61
Climate Change
ESRS E1 ESRS 2 GOV-3 – Integration of sustainability-related performance in incentive schemes 42
E1-1 – Transition plan for climate change mitigation 70
ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 71
ESRS 2 IRO-1 – Description of the processes to identify and assess material climate-related impacts, risks and opportunities 58
E1-2 – Policies related to climate change mitigation and adaptation 72
E1-3 – Actions and resources in relation to climate change policies 72
E1-4 – Targets related to climate change mitigation and adaptation 73
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 58
E2-1 – Policies related to pollution 82
E2-2 – Actions and resources related to pollution 82
E2-3 – Targets related to pollution 84
E2-4 – Pollution of air, water and soil 85
E2-5 – Substances of concern and substances of very high concern 86
Water and marine resources
ESRS E3 ESRS 2 IRO-1 – Description of the process to identify and assess material impacts, risks and opportunities 58
Biodiversity and ecosystems
ESRS E4 E4-1 – Transition plan and consideration of biodiversity and ecosystems in strategy and business model 88
ESRS 2 SBM 3 – Material impacts, risks and opportunities and their interaction with strategy and business model 88
ESRS 2 IRO-1 – Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks, dependencies and
opportunities
58
E4-2 – Policies related to biodiversity and ecosystems 88
E4-3 – Actions and resources related to biodiversity and ecosystems 89
E4-4 – Targets related to biodiversity and ecosystems 89
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
58
E5-1 – Policies related to resource use and circular economy 92
E5-2 – Actions and resources related to resource use and circular economy 93
E5-3 – Targets related to resource use and circular economy 94
E5-4 – Resource inflows 94
E5-5 – Resource outflows 95
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ESRS Standard Disclosure Requirement Page reference
Own workforce
ESRS S1 ESRS 2 SBM-2 – Interests and views of stakeholders 46
ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 99
S1-1 – Policies related to own workforce 99
S1-2 – Processes for engaging with own workforce and workers’ representatives about impacts 101
S1-3 – Processes to remediate negative impacts and channels for own workforce to raise concerns 102
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
102
S1-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 103
S1-6 – Characteristics of the undertaking’s employees 104
S1-7 – Characteristics of non-employees in the undertaking’s own workforce 106
S1-8 – Collective bargaining coverage and social dialogue 106
S1-9 – Diversity metrics 106
S1-10 – Adequate wages 107
S1-11 – Social protection 107
S1-13 – Training and skills development metrics 107
S1-14 – Health and safety metrics 108
S1-15 – Work-life balance metrics 108
S1-16 – Remuneration metrics (pay gap and total remuneration) 108
S1-17 – Incidents, complaints and severe human rights impacts 109
Workers in the value chain
ESRS S2 ESRS 2 SBM-2 – Interests and views of stakeholders 46
ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 111
S2-1 – Policies related to value chain workers 111
S2-2 – Processes for engaging with value chain workers about impacts 115
S2-3 – Processes to remediate negative impacts and channels for value chain workers to raise concerns 115
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
115
S2-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 116
132
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Statement
ESRS Standard Disclosure Requirement Page reference
Consumers and end users
ESRS S4 ESRS 2 SBM-2 – Interests and views of stakeholders 46
ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 119
S4-1 – Policies related to consumers and end users 119
S4-2 – Processes for engaging with consumers and end users about impacts 120
S4-3 – Processes to remediate negative impacts and channels for consumers and end users to raise concerns 121
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 sers, and effectiveness of those actions
121
S4-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 124
Business conduct
ESRS G1 ESRS 2 GOV-1 – The role of the administrative, management and supervisory bodies 40
ESRS 2 IRO-1 – Description of the processes to identify and assess material impacts, risks and opportunities 58
G1-1 – Business conduct policies and corporate culture 127
G1-2 – Management of relationships with suppliers 128
G1-5 – Political influence and lobbying activities 128
G1-6 – Payment practices 129
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Statement
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 40
ESRS 2 GOV-1 Percentage of independent board
members 21 e
Delegated Regulation (EU) 2020/1816,
Annex II
Material 40
ESRS 2 GOV-4 Statement on due diligence
paragraph 30
Indicator number 10
of Table #3 of Annex 1
Material 43
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 70
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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 71
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 73
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 75
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
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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 E1-6 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 -
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 85
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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 E3-1 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 -
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 88
ESRS2 SBM-3 - E4 paragraph 16 b Indicator number 10
Table #2 of Annex 1
Material 88
ESRS2 SBM-3 - E4 paragraph 16 c Indicator number 14
Table #2 of Annex 1
Material 88
ESRS E4-2 Sustainable land or agriculture
practices or policies paragraph 24 b
Indicator number 11
Table #2 of Annex 1
Material 88
ESRS E4-2 Sustainable oceans or seas practices
or policies paragraph 24 c
Indicator number 12
Table #2 of Annex 1
Not material 88
ESRS E4-2 Policies to address deforestation
paragraph 24 d
Indicator number 15
Table #2 of Annex 1
Material 88
ESRS E5-5 Non-recycled waste paragraph 37 d Indicator number 13
Table #2 of Annex 1
Not material 95
ESRS E5-5 Hazardous waste and radioactive
waste paragraph 39
Indicator number 9
Table #1 of Annex 1
Not material 95
ESRS2 SBM-3 - S1 Risk of incidents of forced
labour paragraph 14 f
Indicator number 13
Table #3 of Annex I
Not material 99
ESRS2 SBM-3 - S1 Risk of incidents of child labour
paragraph 14 g
Indicator number 12
Table #3 of Annex I
Not material 99
ESRS S1-1 Human rights policy commitments
paragraph 20
Indicator number
9 Table #3 and
Indicator number 11
Table #1 of Annex I
Material 99
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 99
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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 processes and measures for preventing
trafficking in human beings paragraph 22
Indicator number 11
Table #3 of Annex I
Material 99
ESRS S1-1 workplace accident prevention policy or
management system paragraph 23
Indicator number 1
Table #3 of Annex I
Material 99
ESRS S1-3 Grievance/complaints handling
mechanisms paragraph 32 c
Indicator number 5
Table #3 of Annex I
Material 102
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 108
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 108
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 108
ESRS S1-16 Excessive CEO pay ratio paragraph 97 b Indicator number 8
Table #3 of Annex I
Material 108
ESRS S1-17 Incidents of discrimination paragraph
103 a
Indicator number 7
Table #3 of Annex I
Material 109
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 109
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 111
ESRS S2-1 Human rights policy commitments
paragraph 17
Indicator number
9 Table #3 and
Indicator n. 11 Table #1
of Annex 1
Material 111
ESRS S2-1 Policies related to value chain workers
paragraph 18
Indicator number 11
and n. 4 Table #3 of
Annex 1
Material 111
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 111
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 111
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Statement
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 115
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 119
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 119
ESRS S4-4 Human rights issues and incidents
paragraph 35
Indicator number 14
Table #3 of Annex 1
Material 121
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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Sustainability
Statement
Additional
sustainability
disclosures
ADDITIONAL, NON-MATERIAL INFORMATION
Pollution
NO
X
and SO
X
emissions were assessed non-material in the
double materiality assessment. However, Nokian Tyres reports
the following figures to provide transparent information also
about these emissions.
Emissions to air 2025 2024 2023
NOx, t
Tire factory in the US 3.6 3.3 2.8
SOx, t
Tire factory in the US 0.1 0.6 0.5
(GRI 305: Emissions 2016. GRI 305–7 Nitrogen oxides (NO
X
), sulfur oxides (SO
X
))
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 have 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 other tire factories. 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.
The significant difference in the figures for water withdrawal
and discharge in Romania is due to water having been used for
watering the lawn area (ca. 10 hectares) around the factory.
Nokian Tyres’ target for water usage in 2025 was that municipal
(third party) water withdrawal is below three 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 2025, municipal (third
party) water withdrawal was 2.6 liters per product kilogram in
the tire factories.
Water 2025 2024 2023
Cooling water (surface water),
Tire factory in Finland, 1,000 m
3
Withdrawal, Nokianvirta river 7,854.0 7,785.0 9,004.2
Discharge, Nokianvirta river 7,799.7 7,745. 3 8,950.8
Municipal water, 1,000 m
3
Tire factory in Finland 89.9 81.5 75.1
Tire factory in the US 142.4 156.4 142.2
Tire factory in Romania 70.4
Wheel factory in Finland 9.5 6.8 6.3
Water discharge, sewage, 1,000 m
3
Tire factory in Finland 144.2 118.4 128.5
Tire factory in the US 115.0 138.2 97. 3
Tire factory in Romania 24.8
Wheel factory in Finland 9.5 6.8 6.3
(GRI 303: Water and effluents 2018. 303–3 Water withdrawal, 303–4 Water
discharge)
140
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Statement
Year 2025
Sustainability
Statement
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’ factory waste disposal.
Waste generated 2025 2024* 2023*
Tire factory,
Finland 2025
Tire factory,
Romania 2025
Tire factory, US
2025
Wheel factory,
Finland 2025
Hazardous waste diverted from disposal 663 344 218 270 0 0 393
Hazardous waste diverted from disposal due to preparation for reuse 0 0 0 0 0 0 0
Hazardous waste diverted from disposal due to recycling 663 344 218 270 0 0 393
Hazardous waste diverted from disposal due to other recovery operations 0 0 0 0 0 0 0
Non-hazardous waste diverted from disposal 12,830 7,250 5,604 2,098 3,571 5,096 2,065
Non-hazardous waste diverted from disposal due to preparation for reuse 1,181 1,108 145 240 0 941 0
Non-hazardous waste diverted from disposal due to recycling 11,523 6,080 5,400 1,764 3,571 4,155 2,033
Non-hazardous waste diverted from disposal due to other recovery operations 126 62 59 94 0 0 32
Hazardous waste directed to disposal 40 19 62 27 0 0 13
Hazardous waste directed to disposal by incineration 40 19 62 27 0 0 13
Hazardous waste directed to disposal by landfilling 0 0 0 0 0 0 0
Hazardous waste directed to disposal by other disposal operations 0 0 0 0 0 0 0
Non-hazardous waste directed to disposal 4,712 3,749 3,678 3,287 976 417 32
Non-hazardous waste directed to disposal by incineration 106 32 54 0 0 106 0
Non-hazardous waste directed to disposal by energy recovery 4,606 3,717 3,624 3,287 976 311 32
Non-hazardous waste directed to disposal by landfilling 0 0 0 0 0 0 0
Non-hazardous waste directed to disposal by other disposal operations 0 0 0 0 0 0 0
Non-recycled waste 4,752 3,768 3,740 3,314 976 417 45
Percentage of non-recycled waste 26% 33% 39% 58% 21% 8% 2%
Total waste (t) 18,245 11,362 9,562 5,682 4,547 5,513 2,503
*Includes only tire factories in Finland and in the US
(GRI 306: Waste 2020. 306–3 Waste generated, 306–4 Waste diverted from disposal)
ADDITIONAL, NON-MATERIAL INFORMATION
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CORPORATE
GOVERNANCE
STATEMENT
Introduction 143
Governance bodies 143
Board of Directors 145
Management Team 150
Internal control and risks 152
THE AVERAGE ANNUAL
SNOWFALL IN THE
BAVARIAN ALPS
119 CM
Corporate Governance Statement 2025
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 cgfinland.fi/en/corporate-governance-
code. The Company’s Board of Directors has approved the
Corporate Governance Statement on February 10, 2026.
The Corporate Governance Statement will be published as part
of the Report by the Board of Directors in the Annual Report
2025. 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
administrative organization described in the charts 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.
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
General Meeting
Board of Directors
President and CEO
Management
Team
Audit Committee
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
143
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Corporate Governance
Statement
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, the Auditor and the Sustainability
Reporting Assurance Provider, 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 Remuneration Policy
and the Remuneration Report are advisory.
The Annual General Meeting is held by the end of May each
year on a date determined by the Board of Directors, either in
Nokia, Tampere, Helsinki or virtually without a physical meeting
venue. 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 at least one-tenth of
all the shares in the Company requires the meeting 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, provided that a written request is submitted to the
Board of Directors before the deadline posted on Nokian Tyres’
website for submitting such requests. In 2025, this date was
March 6, 2025. 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 at the Annual General
Meeting:
• the Board of Directors: the Chair of the Board, Board
members and Board member candidates
• the President and CEO and members of the Group’s
Management Team
• the Auditor and the Sustainability Reporting Assurance
Provider
The Annual General Meeting 2025 was held on May 7,
2025 in Helsinki, Finland.
Shareholders registered for the meeting were also able
to follow the meeting through a webcast.
More information on the Annual General Meeting 2025
and previous meetings are available on the Company’s
website at company.nokiantyres.com/investors/
corporate-governance/annual-general-meeting.
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:
• preparing proposals to be presented at the General Meeting
concerning the number of members, composition, Chair and
possible Deputy Chair of the Board of Directors
• preparing proposals to be presented at the General Meeting
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
Finland Ltd. on the first banking day of June, who accept the
assignment. In addition, the Chair of the Board of Directors is a
member of the Nomination Board. The Nomination Board gives
its proposal to the Board of Directors annually no later than
January 31 preceding the next Annual General Meeting.
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The members of the Nomination Board are not entitled to
remuneration from the Company unless otherwise decided by
the General Meeting.
The following members were appointed to the Nomination
Board in 2025:
• Mr. Petter Söderström (Investment Director, Solidium Oy),
appointed by Solidium Oy
• Mr. Mikko Mursula (President and CEO, Ilmarinen Mutual
Pension Insurance Company), appointed by Ilmarinen Mutual
Pension Insurance Company
• Mr. Timo Sallinen (Director, Head of Listed Securities, Varma
Mutual Pension Insurance Company), appointed by Varma
Mutual Pension Insurance Company
• Mrs. Jonna Ryhänen (Chief Investment Officer and Deputy
CEO, Elo Mutual Pension Insurance Company), appointed by
Elo Mutual Pension Insurance Company
• Mr. Jukka Hienonen, Chair of the Board of Directors, Nokian
Tyres plc
The proposals by the Nomination Board were published on
January 9, 2026. The Nomination Board had five meetings. The
members’ attendance rate was 100 percent. The Nomination
Board had four male and one female member.
The Charter of the Nomination Board is available at company.
nokiantyres.com/Investors/corporate governance/
Shareholders’ nomination board/charter.
Board of Directors
Operation of the Board of Directors
The Board of Directors is responsible for Nokian Tyres’
corporate governance and the appropriate organization of its
operations pursuant to the Finnish Limited Liability Companies
Act and other applicable regulations. The Board of Directors
holds 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
duties 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 duties 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,
business and sustainability 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 of Directors 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 Nomination Board formulates
proposals regarding the composition and remuneration of the
Board of Directors to be presented at the General Meeting. The
number of members and the structure of the Board of Directors
must facilitate effective governance, taking into account the
operational requirements and developmental phase of the
Company. The elected Board members must be qualified for the
task and able to commit sufficient time to their 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 2025, the Annual
General Meeting elected eight Board members and appointed
the Chair and the Deputy Chair of the Board of Directors upon
the proposal by the Nomination Board.
On August 29, 2025, Christopher Ostrander announced his
resignation from the Board of Directors due to his appointment
as SVP, Passenger Car Tyres, North America and a member of
the Group Management Team as of September 1, 2025. After
this, the Board of Directors comprised seven members.
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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 Investment Committee
Member of the Shareholders’ Nomination
Board
Education: Master of Science (Economics)
Main occupation: Professional board member
Key positions of trust: -
Shareholdings: 59,625*
Elina Björklund
Deputy Chair of the Board
b. 1970, female
Member of the Board since 2024
Chair of the People and Sustainability
Committee
Member of the Investment Committee
Education: M.Sc. (Econ), IDBM pro
(International Design Business Management
-program)
Main occupation: Chair of the Board:
Reima Group
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 (Member of the Remuneration Committee),
Urlus Foundation (Deputy Chair). Member of
the commission: LSR Foundation of Economic
Education Foundation, EVA Finnish Business
and Policy Forum.
Shareholdings: 8,740*
Markus Korsten
b. 1970, male
Member of the Board since 2023
Chair of the Investment Committee
Education: Study of Applied Physics, Dipl. Ing. (FH)
Main occupation: Co-Founder and CEO:
MegaLion Europe GmbH
Founding and Managing Partner: Enperium
GmbH
Key positions of trust: Member of the Board:
Zefyron GmbH
Senior Investment Advisor: Longrun Capital AB
Shareholdings: 9,338*
Board of Directors December 31, 2025
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 (CEO): SKV Invest & affiliates
Key positions of trust: Member/Director of
the Board: Klingele Paper & Packaging SE
& Co KG, HyperPark Ltd., ENPERIUM GmbH,
Zefyron GmbH, SENTImotion GmbH, MegaLion
Europe GmbH, MegaLion Equity AG, MaxifyIP
GmbH, CIDA GmbH, Green Tech Hub GmbH and
Invest BW — Innovation & Investment funding
program of the state of Baden-Württemberg
Shareholdings: 17,18 0*
*Including own holdings and controlled entities.
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Antti Mäkinen
b. 1961, male
Member of the Board since 2025
Member of the Audit Committee
Education: Master of Laws
Main occupation: Board professional
Key positions of trust:
Chair of the Board: Sampo plc
(Chair of the Nomination and Remuneration
Committee)
Shareholdings: 3,501*
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: CEO: eQ Plc
Key positions of trust:
Chair of the Board: eQ Fund Management
company Ltd., The Finnish Foundation for
Share Promotion. Member of the Board: eQ
Asset Management Ltd., Excellence Finland.
Shareholdings: 42,430*
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 positions 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: 9,152*
More detailed information, including CV’s of the Board members, is available on the Company’s website at
company.nokiantyres.com/investors/corporate-governance/board-of-directors/
*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, however, Antti
Mäkinen is deemed independent of Solidium Oy starting from
June 1, 2025.
The Board of Directors meetings and attendance
In 2025, the Board of Directors, among others, ensured the
successful onboarding of the new President and CEO into the
Company’s operations, reviewed Research and development
operations, product testing and material development,
closely monitored the Company’s financial performance and
operational efficiency, and oversaw the process for reviewing
the Company’s strategy and long-term financial targets.
The Board of Directors convened a total of 11 times in 2025.
Member of the Board
Number of
meetings
Meeting
attendance %
Jukka Hienonen (Chair) 11/11 100%
Pekka Vauramo (Deputy Chair until*) 3/4 75%
Elina Björklund (Deputy Chair since*) 11/11 100%
Susanne Hahn 11/11 100%
Markus Korsten 11/11 100%
Elisa Markula 11/11 100%
Antti Mäkinen (Member since*) 7/7 100%
Christopher Ostrander
(Member until**) 7/7 100%
Jouko Pölönen 11/11 100%
Reima Rytsölä (Member until*) 4/4 100%
*May 7, 2025
**August 29, 2025
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.
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 considers the particular
diversity requirements that are relevant to the company’s
current and future needs. 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.
Age
40–49, 1
50–59, 4
60–69, 2
Gender
Female, 3 (43%)
Male, 4 (57%)
Tenure
1 year, 1
2–3 years, 3
4–5 years, 2
6–7 years, 1
Nationality
Finland, 5
Germany, 2
Information in the graphs reflect the composition of the
Board on December 31, 2025.
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Committees of the Board of Directors
The Board of Directors will decide on the committees and
their chairs and members each year. In 2025, the Board of
Directors had three committees: Audit Committee, People and
Sustainability Committee and Investment Committee.
Each committee must include no fewer than three members
having the competence and expertise necessary for working on
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. 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
• monitors that the Company’s accounting, financial
administration, financing, internal control, internal audit,
information security, statutory audit, risk management and
compliance function are properly organized
• follows and assesses the financial reporting process and
significant changes in accounting principles as well as items
valued in the Balance Sheet
• reviews the Corporate Governance Statement
• monitors the statutory audit of the Financial Statement and
the Consolidated Financial Statements and assesses the
independence of the statutory Auditor and the non-audit or
assurance services provided by the Auditor
• reviews the Auditor’s Report and audit minutes (if any) as well
as the supplementary report presented by the Auditor to the
Audit Committee
• prepares the proposal for the selection of the Auditor to be
submitted to the General Meeting
• monitors and assesses whether agreements and other legal
acts between the Company and its related parties comply
with ordinary business practices and arm’s length terms in
accordance with applicable laws and regulations
As a general rule, the Company’s Principal Auditor participates
in Audit Committee’s meetings.
Audit Committee members, meetings and attendance in 2025
Members of the Audit Committee
Number of
meetings
Meeting
attendance %
Jouko Pölönen (Chair) 5/5 100%
Elisa Markula 5/5 100%
Antti Mäkinen (Member since*) 3/3 100%
Reima Rytsölä (Member until*) 2/2 100%
*May 7, 2025
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 for the
appointment and remuneration of the President and CEO
• preparing a proposal to the Board of Directors for the
appointment and remuneration of the Group’s Management
Team members
• succession planning for the President and CEO
• 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
• reviewing the Remuneration Policy and the Remuneration
Report
• preparing sustainability issues for the Board of Directors and
monitoring developments in the operating environment and
regulation relating to sustainability
• reviewing the Sustainability Statement
• preparing the proposal for election of the Sustainability
Reporting Assurance Provider to be submitted to the Annual
General Meeting
• ensuring that assurance of sustainability reporting is
appropriately organized, monitoring assurance of the
Sustainability Statement, reviewing the Assurance Report on
the Sustainability Statement and discussing the key issues
raised in the assurance with the Sustainability Reporting
Assurance Provider
People and Sustainability Committee members, meetings and
attendance in 2025
Members of the People and
Sustainability Committee
Number of
meetings
Meeting
attendance %
Elina Björklund (Chair) 7/7 100%
Susanne Hahn 7/7 100%
Jukka Hienonen 7/7 100%
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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 on the Company’s strategic
investment options before presentation to the Board of
Directors
• work with Management to identify potential strategic
targets for mergers and acquisitions
• evaluate, review, and make recommendations with respect
to other related matters failing within the duties of the
Investment Committee
Investment Committee members, meetings and attendance in 2025
Members of the Investment
Committee
Number of
meetings
Meeting
attendance %
Christopher Ostrander
(Chair until*) 2/2 100%
Markus Korsten (Chair since*) 3/3 100%
Elina Björklund (Member since*) 1/1 100%
Jukka Hienonen (Member since**) 1/2 50%
Pekka Vauramo (Member until**) 0/1 0%
*August 29, 2025
**May 7, 2025
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
Paolo Pompei started in the position on January 1, 2025.
Paolo Pompei
b. 1971, male
Education: Degree in Economics with a M.Sc.
in International Trade
Position: President and CEO
Key experience:
2023–2024 Yokohama TWS, President and CEO
2017–2023 Trelleborg Wheel Systems, President
2006–2017 Trelleborg Wheel Systems, Business Unit Agricultural
tires, President
1999–2005 Trelleborg Wheel Systems, several positions
1997–1999 Pirelli UK LTD
Key positions of trust:
Tyres Europe (former ETRMA), Vice-President of the Board of
Directors 10/2025–
ETRMA, Member of the Board of Directors 2017–10/2025
Management Team
The Group’s Management Team supports 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.
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Paolo Pompei
b. 1971, male
President and CEO
Education: Degree in Economics
with a M.Sc. in International Trade
Shareholdings: 11,674*
Tommi Alhola
b. 1971, male
Passenger Car Tyres, Central Europe
Education: MBA, Bachelor of
Business Information Technology
Shareholdings: 1,451*
Elisa Erkkilä
b. 1967, female
Legal and Compliance
Education: Master of Laws,
Trained on the Bench, Master of
Comparative Laws
Shareholdings: 0*
Tron Gulbrandsen
b. 1976, male
Passenger Car Tyres, Nordics, and
Heavy Tyres (interim)
Education: Bachelor’s Degree,
International Marketing
Shareholdings: 0*
Adrian Kaczmarczyk
b. 1971, male
Operations
Education: Dipl. Ing. Engineering, MBA
Shareholdings: 3,420*
Jukka Kasi
b. 1966, male
Products and Innovations
Education: Master of Science
(Technology)
Shareholdings: 48,616*
Lauri Halme
b. 1975, male
Vianor
Education: Master of Science
(Technology), Master of Science
(Economy)
Shareholdings: 1,765*
Päivi Leskinen
b. 1965, female
Human Resources
Education: Master of Social
Sciences
Shareholdings: 1,182*
Jari Huuhtanen
b. 1974, male
Finance, Interim CFO
Education: Master of Science
(Economics)
Shareholdings: 1,643*
Christopher Ostrander
b. 1968, male
Passenger Car Tyres, North America
Education: B.Sc. (Mechanical
Engineering); M.Sc. (Engineering
Management); MBA
Shareholdings: 13,400*
Management Team December 31, 2025
*Including own holdings and controlled entities.
More detailed information concerning the Management Team is available on the Company’s website at
company.nokiantyres.com/investors/corporate-governance/group-management-team.
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III Descriptions of mechanisms of internal control
and risk management
Internal control
The principles of internal control are designed to ensure that the
Company’s objectives - for example, those related to strategy,
operations, practices, and especially financial and sustainability
reporting - are achieved. These principles also help ensure
compliance with laws and regulations within the Company.
The purpose of the Group’s internal control mechanisms related
to financial and sustainability reporting is to ensure that all
published reports are prepared according to the Company’s
accounting rules, other relevant principles, and sustainability
standards. The goal is to provide a materially accurate, reliable,
and precise picture of the Group’s financial standing and
sustainability performance.
Nokian Tyres has defined group-level policies and instructions
for the Group’s operative business units in order to ensure
efficient and profitable Company operations. Internal controls
are specific mechanisms to manage and mitigate risks.
The Board of Directors is responsible for ensuring the
functionality of internal control mechanisms, which are overseen
by the Company’s management and implemented throughout
the organization. Internal control is an integral part of all Group
activities at every level. Nokian Tyres’ operative management
holds the primary responsibility for operational control. Each
supervisor is required to maintain adequate oversight of the
activities within their area of responsibility and to continuously
monitor the effectiveness of control mechanisms. The Chief
Financial Officer (CFO) is responsible for organizing financial
administration, reporting processes, and related internal
controls. The Group’s Finance function manages both internal
and external accounting; its duties include producing financial
information for various areas and ensuring its accuracy.
The preparation process for the Consolidated Financial
Statements (IFRS), along with related control measures, task
descriptions, and areas of responsibility within the reporting
process, is clearly defined. Finance is responsible for preparing
consolidated financial statements and provides information
for both the Group as a whole and its different areas. Each
legal entity within the Group prepares its own financial
information in compliance with the instructions provided and
local legislation. The Group’s Finance function is centrally
responsible for interpreting and applying financial and ESRS
standards, as well as for monitoring compliance with these
standards.
Effective internal control requires sufficient, timely, and
reliable information to enable the Company’s management
to monitor the achievement of targets and the efficiency
of control mechanisms. This encompasses financial and
sustainability information, as well as other data received
through IT systems and internal or external channels.
Instructions regarding financial administration and other
relevant matters are available on the Company’s intranet, and
training is provided to personnel as needed. Communication
with business units is continuous. The Company’s financial
performance is monitored internally through monthly reports
and updated forecasts. Financial results are communicated
to Company personnel immediately after the stock exchange
releases are published.
Investor relations and communications
The purpose of Nokian Tyres’ Investor Relations is to regularly
provide the stock market with essential, accurate, sufficient,
and up-to-date information. This information helps determine
the value of the company’s shares. The operations are based
on the principles of 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 in 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
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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 businesses
and functions 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 factories are certified to ISO 9001
(quality) and ISO 14001 (environment), and the tire factories
in Finland and the US are certified to ISO 45001 (safety)
standards. The Group is committed to the UN Global Compact
framework for responsible and sustainable business practices.
An outsourced Internal Audit reports to the Board of Directors
and provides 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. The Sustainability Statement describes
sustainability-related risks and uncertainties known to the
Company.
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 assurance 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 outsourced. The
Internal Audit team reports administratively to CFO and
functionally to the Audit Committee. 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 action plans are presented to
the Audit Committee, after which the implementation of the
action plans is continuously monitored.
In 2025, Internal Audit carried out audits in accordance with its
audit plan, both at the factories and in relation to the functions
and processes of the business areas. Internal Audit has also
collaborated with Legal & Compliance and other assurance
functions in Nokian Tyres.
Related party transactions
Nokian Tyres identifies and monitors its related parties in
accordance with the International Accounting Standards (IAS 24,
Related Party Disclosures) and other applicable regulations, and
discloses the required information on related party transactions
in the notes to the consolidated Financial Statements, included
in the Annual Report.
The Company has procedures in place to identify its related
parties. The Company evaluates and monitors transactions
with related party to ensure that all conflicts of interest
are recognized and that the Company’s decision-making is
compliant with applicable laws.
The Company’s Finance function monitors and supervises
related party transactions as part of the Company’s normal
reporting and monitoring procedures and reports to the Audit
Committee on regular basis. The Audit Committee monitors
and evaluates that related party transactions are entered
into in the ordinary course of business and concluded on
customary market terms. If the Company were to engage
in transactions that do not fall within its ordinary course of
business or in which the terms are not consistent with those
applied between independent parties, such transactions
would need to be reviewed by the Audit Committee and
approved by the Board of Directors.
Insider management
Nokian Tyres complies with the EU Market Abuse Regulation
(MAR) and the guidelines for insider trading drawn up by
Nasdaq Helsinki Ltd. Furthermore, the Company has drawn up
separate Insider Policy, approved by the Board of Directors,
that complements other insider regulations and provides
guidance regarding insider administration.
Nokian Tyres does not maintain a permanent insider register.
Insiders are identified on a case-by-case basis and added
to project-specific insider lists. Individuals 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. Individuals who are added to a project-
specific insider list are informed when they are included on
the list, what responsibilities this entails, and when the insider
project ends.
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Statement
Nokian Tyres maintains a separate list of persons discharging
managerial responsibilities and their closely associated persons.
In 2025, these persons 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).
Whistleblowing
The Company has had a whistleblowing channel available since
2011. Employees and third parties can 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 through the channel are processed
confidentially and 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 audit ensures the accuracy
and transparency of the company’s financial reporting
and supports shareholders’ oversight of the governance
practices. The Auditor reports all audit findings to the Group’s
management.
During the financial year 2025, the Company’s Auditor and
Sustainability Reporting Assurance Provider was authorized
public accountant firm Ernst & Young Oy with Mikko
Järventausta APA, ASA acting as the Principal Auditor and
Sustainability Auditor.
The following table presents fees by type paid for the years
ended December 31:
Fees by type paid, EUR 2025 2024
Audit services 1,011,369 1,034,000
Sustainability reporting assurance services 148,510 88,400
Other services 12,790 70,000
Total 1,172,669 1,192,400
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Corporate Governance
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THE COLDEST
TEMPERATURE
RECORDED IN ITALY
AT BUSA NORD DI
FRADUSTA IN THE
DOLOMITES
-49.6 °C
FINANCIAL
STATEMENTS
Consolidated financial statements 156
Parent company financial statements 206
Signatures and the auditor’s note 217
Auditor’s report 218
ESEF Assurance report 222
Assurance report on the sustainability statement 224
Information on Nokian Tyres’ share 226
Nokian Tyres’ Group structure 227
Consolidated income statement, IFRS
EUR million | Note | 2025 | 2024 |
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 | - | - | |
| 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 | - | - |
EUR million | Note | 2025 | 2024 |
| 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 | - | |
| 1 | |||
| Translation differences on foreign 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 | - | ||
| 1 | |||
Since of this year the Group has internal loans that are recognized as net investments in foreign operations in accordance with IAS 21 The Effects of Changes in Foreign Exchange Rates. |
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Financial
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Consolidated statement of financial position, IFRS
EUR million | Note | 2025 | 2024 |
| 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 50 0
million domestic commercial paper program.
Interest-bearing liabilities include EUR 73 .7 million of non-current and EUR 40. 3 million of current
lease liabilities.
EUR million | Note | 2025 | 2024 |
| 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 |
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Financial
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Consolidated statement of cash flows, IFRS
EUR million | Note | 2025 | 2024 |
Result for the period | - | - | |
Adjustments for 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 | 2025 | 2024 |
| Cash flows from investing activities | |||
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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Financial
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Consolidated statement of changes in equity, IFRS
Equity attributable to equity holders of the parent
| Paid-up | |||||||||
| Fair value | unrestricted | ||||||||
| Share cap- | Share pre- | Treasury | Translation | and hedging | equity | Retained earn- | Total | ||
EUR million | Note | ital | mium | shares | reserve | reserves | reserve | ings | equity |
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 | - | ||||||||
Equity, Jan 1, 2025 | - | ||||||||
Result for the period | - | - | |||||||
| Other comprehensive income, net of tax: | |||||||||
Cash flow hedges | |||||||||
Translation differences | - | - | |||||||
Total comprehensive income for the period | - | - | - | ||||||
Dividends paid | 23 | - | - | ||||||
Share-based payments | 24 | ||||||||
Other changes | 19 | - | - | ||||||
Total transactions with owners for the period | - | - | |||||||
Equity, Dec 31, 2025 | - | - |
159
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Financial
Statements
Accounting policies for the consolidated
financial statements
160
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Financial
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Statement
Corporate Governance
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Year 2025
Financial
Statements
Nokianvirran Energia Oy is accounted for as a Group company
When the operating result is positive, the term operating profit
can be used.
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Financial
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Notes to the consolidated financial statements
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| Other | |||||
| 2025 | Passenger | operations and | |||
| EUR million | Ca r Tyres | Heavy Tyres | Vianor | eliminations | Group |
Net sales from external customers | 801.2 | 203.0 | 362.9 | 6.4 | 1,373.6 |
Services | 94.1 | 94.1 | |||
Sales of goods | 801.2 | 203.0 | 268.9 | 6.4 | 1,279.6 |
Inter-segment net sales | 57.2 | 29.0 | 0.9 | -87.0 | |
Net sales | 858.4 | 232.0 | 363.8 | -80.6 | 1,373.6 |
Operating result | 28.3 | 24.3 | -3.5 | -13.2 | 35.8 |
% of net sales | 3.3% | 10.5% | -1.0% | 16.4% | 2.6% |
Financial income and expenses | -51.7 | ||||
Result before tax | -15.9 | ||||
Tax expense | 0.9 | ||||
Result for the period | -15.0 | ||||
Assets | 1,665.5 | 192.8 | 193.0 | 11.8 | 2,063.2 |
Unallocated assets | 250.6 | ||||
Total asset s | 2,313.8 | ||||
Liabilities | 216.9 | 43.6 | 53.1 | 0.6 | 314.2 |
Unallocated liabilities | 835.3 | ||||
Total liabilities | 1,149.5 | ||||
Capital expenditure | 109.4 | 8.7 | 5.1 | 3.7 | 126.9 |
Depreciation and amortization | 98.7 | 11.3 | 31.2 | 1.1 | 142.2 |
Other non-cash expenses | 1.4 | -0.3 | 0.2 | 0.0 | 1.3 |
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| Other | |||||
| 2024 | Passenger | operations and | |||
| EUR million | Ca r 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 ,1 57.6 |
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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Year 2025
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
| 2025 | ||||||
EUR million | Nordics | Other Europe | Americas | Other countries | Other | Group |
Net sales | 727.4 | 343.2 | 298.0 | 5.0 | - | 1,373.6 |
Services | 94.1 | - | - | - | 94.1 | |
Sales of goods | 633.3 | 343.2 | 298.0 | 5.0 | - | 1,279.6 |
Assets | 916.3 | 617.2 | 538.0 | 0.0 | -8.3 | 2,063.2 |
Unallocated assets | 250.6 | |||||
Total assets | 2,313.8 | |||||
Capital expenditure | 38.0 | 80.6 | 8.3 | 0.0 | 0.0 | 126.9 |
| 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 |
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Financial
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Acquisitions
There were no significant acquisitions during 2025 and 2024.
EUR million | 2025 | 2024 |
Raw materials | 336.8 | 274.7 |
Goods purchased for resale | 218.7 | 242.3 |
Wages and social security contributions on goods sold | 82.6 | 74.3 |
Other costs | 219.3 | 213.6 |
Depreciation of production | 91.0 | 77. 2 |
Sales freights | 72.4 | 78.2 |
Warehousing | 63.1 | 69.4 |
Change in inventories | 8.3 | 26.3 |
Total | 1,092.3 | 1,056.0 |
EUR million | 2025 | 2024 |
| Gains on sale of property, plant and | ||
equipment | 0.6 | 0.5 |
Other income | 1.6 | 1.9 |
Total | 2.2 | 2.4 |
EUR million | 2025 | 2024 |
| Losses on sale and disposals of tangible | ||
fixed assets | 0.5 | 0.0 |
Expensed credit losses and provisions | -0.3 | 0.0 |
Other expenses | 1.6 | 0.9 |
Total | 1.8 | 1.0 |
EUR million | 2025 | 2024 |
Audit fee | 1.2 | 1.0 |
Tax services | - | - |
Other services | 0.0 | 0.1 |
Total | 1.2 | 1.1 |
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Financial
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EUR million | 2025 | 2024 |
Intangible rights | 3.8 | 3.8 |
Other intangible assets | 0.7 | 0.8 |
Buildings | 12.2 | 9.6 |
Machinery and equipment | 72.0 | 61.9 |
Right of use asset | 50.2 | 45.6 |
Other tangible assets | 3.3 | 2.5 |
Total | 142.2 | 124.2 |
EUR million | 2025 | 2024 |
Production | 91.0 | 77. 2 |
Selling, marketing and R&D | 40.0 | 35.9 |
Administration | 11.2 | 11.1 |
Total | 142.2 | 124.2 |
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EUR million | 2025 | 2024 |
Wages and salaries | 223.8 | 209.6 |
| Pension contributions - defined contribution | ||
plans | 23.5 | 22.8 |
Share-based payments | 1.9 | -0.2 |
Other social security contributions | 26.0 | 24.1 |
Total | 275.3 | 256.3 |
Information on the employee benefits and loans of the key
management personnel is presented in note 34 Related party
transactions.
Other than production wages and salaries were EUR 192.7 (182.1)
million in 2025.
Personnel
2025 | 2024 | |
| Group employees | ||
Average | 4,176 | 3,850 |
At the end of the review period | 3,959 | 3,810 |
EUR million | 2025 | 2024 |
| Interest income | ||
Financial assets measured at amortized cost | 2.6 | 7.4 |
| 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 | 20.7 | 10.9 |
Foreign currency derivatives | 25.3 | 18.4 |
Other financial income | 0.0 | 0.1 |
Total | 48.7 | 37.0 |
EUR million | 2025 | 2024 |
| Interest expenses | ||
Financial liabilities measured at amortized cost | -32.8 | -33.0 |
| Interest rate derivatives designated | ||
as hedges | -1.0 | 2.0 |
Lease liabilities | -4.8 | -4.5 |
Exchange rate losses and changes in fair value | ||
Financial assets and liabilities at amortized cost | -30.4 | -15.9 |
Foreign currency derivatives | -28.3 | -16.1 |
Other financial expenses | -3.2 | -2.8 |
Total | -100.4 | -70. 2 |
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EUR million | 2025 | 2024 |
Current tax expense | -6.5 | -12.8 |
Adjustment for prior periods | -1.3 | 0.7 |
Change in deferred tax | 8.7 | 20.8 |
Total | 0.9 | 8.7 |
The reconciliation of tax expense recognized in the income
statement and tax expense using the domestic corporate tax rate
(2025: 20.0%, 2024: 20.0%):
EUR million | 2025 | 2024 |
Result before tax | -15.9 | -31.5 |
| Taxes calculated according to the Finnish | ||
tax rate of 20% | 3.2 | 6.3 |
| Effect of deviant tax rates in foreign | ||
subsidiaries | -0.6 | -1.6 |
Tax exempt revenues | 0.2 | 0.4 |
Non-deductible expenses | -0.5 | -0.5 |
Adjustment for prior periods | -0.8 | 3.9 |
| Utilization of previously unrecognized tax | ||
losses | 0.0 | 0.1 |
Other items | -0.6 | 0.2 |
Tax expense | 0.9 | 8.7 |
Income tax relating to components of other comprehensive
income:
| 2025 | Before | Tax | Net of |
| EUR million | tax amount | benefit | tax amount |
Cash flow hedges | 5.6 | -1.0 | 4.5 |
| Translation differences | |||
on foreign operations | -64.7 | -64.7 | |
Total | -59.1 | -1.0 | -60.1 |
| 2024 | Before | Tax | Net of |
| EUR million | tax amount | benefit | tax amount |
Cash flow hedges | -1.3 | 0.5 | -0.8 |
| Translation differences | |||
on foreign operations | 27.0 | 27.0 | |
Total | 25.7 | 0.5 | 26.2 |
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EUR million | 2025 | 2024 |
| Result attributable to the equity holders | ||
of the parent | -15.0 | -22.8 |
| Result for the period to calculate the diluted | ||
earnings per share | -15.0 | -22.8 |
| Shares, 1,000 pcs | ||
Weighted average number of shares | 137,873 | 137, 8 69 |
Dilutive effect of the options | - | - |
Diluted weighted average number of shares | 137,873 | 137,8 69 |
| Earnings per share, euros | ||
Basic | -0.11 | -0.17 |
Diluted | -0.11 | -0.17 |
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| Other | Advances and fixed | |||||
| 2025 | Machinery and | tangible | assets under | |||
EUR million | Land property | Buildings | equipment | assets | construction | Total |
Accumulated cost, Jan 1, 2025 | 27.7 | 401.4 | 1,214.2 | 67.5 | 305.1 | 2,015.9 |
Increase | 1.1 | -15.7 | -8.1 | -0.9 | 152.3 | 128.6 |
Decrease | -0.1 | -0.8 | -5.4 | -0.1 | -0.1 | -6.5 |
Transfers between items | 0.0 | 56.2 | 179.1 | 6.7 | -252.9 | -10.9 |
Other changes | 0.0 | 0.0 | 0.0 | 0.0 | ||
Exchange differences | -0.3 | -20.1 | -38.1 | -1.6 | -7.9 | -67.9 |
Accumulated cost, Dec 31, 2025 | 28.5 | 421.0 | 1,341.7 | 71.6 | 196.5 | 2,059.2 |
Accum. Depreciation, Jan 1, 2025 | 0.0 | -103.4 | -720.9 | -14.9 | -839.1 | |
Depreciation for the period | -12.2 | -72.0 | -3.3 | -87.6 | ||
Decrease | 0.5 | 3.1 | 0.0 | 3.5 | ||
Other changes | 0.0 | |||||
Exchange differences | 1.9 | 10.2 | 0.4 | 12.5 | ||
Accum. Depreciation, Dec 31, 2025 | 0.0 | -113.2 | -779.6 | -17.8 | -910.6 | |
Carrying amount, Dec 31, 2025 | 28.4 | 307.8 | 562.0 | 53.8 | 196.5 | 1,148.6 |
| Other | Advances and fixed | |||||
| 2024 | Machinery and | tangible | assets under | |||
EUR million | Land property | Buildings | equipment | assets | construction | Total |
Accumulated cost, Jan 1, 2024 | 27.6 | 274.1 | 1,049.9 | 51.4 | 244.5 | 1 ,6 47. 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, Dec 31, 2024 | 27.7 | 401.4 | 1,214.2 | 6 7. 5 | 305.1 | 2,015.9 |
Accum. Depreciation, Jan 1, 2024 | 0.0 | -93.2 | -656.9 | -12.2 | -762.3 | |
Depreciation for the period | -9.6 | -61.9 | -2.5 | -74.0 | ||
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, Dec 31, 2024 | 0.0 | -103.4 | -720.9 | -14.9 | -839.1 | |
Carrying amount, Dec 31, 2024 | 27.7 | 298.0 | 493.3 | 52.7 | 305.1 | 1,176.8 |
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| Other | ||||
| 2025 | Intangible | intangible | ||
EUR million | Goodwill | rights | assets | Total |
Accumulated cost, Jan 1, 2025 | 76.0 | 91.9 | 26.7 | 194.7 |
Increase | 0.7 | 0.7 | ||
Decrease | -0.1 | 0.0 | -0.1 | |
Transfers between items | 10.8 | 0.1 | 10.9 | |
Other changes | 0.0 | 0.0 | 0.0 | |
| Exchange | ||||
differences | 0.5 | 0.1 | 0.0 | 0.6 |
Accumulated cost, Dec 31, 2025 | 76.6 | 103.5 | 26.7 | 206.8 |
| Accum. | ||||
Depreciation, Jan 1, 2025 | -14.5 | -78.6 | -23.3 | -116.5 |
Depreciation for the period | -3.8 | -0.7 | -4.5 | |
Decrease | 0.1 | 0.0 | 0.1 | |
| Other changes | ||||
| Exchange | ||||
differences | 0.0 | -0.1 | 0.0 | -0.1 |
| Accum. | ||||
Depreciation, Dec 31, 2025 | -14.5 | -82.4 | -24.0 | -121.0 |
Carrying amount, Dec 31, 2025 | 62.0 | 21.1 | 2.7 | 85.8 |
| Other | ||||
| 2024 | Intangible | intangible | ||
EUR million | Goodwill | rights | assets | Total |
Accumulated cost, Jan 1, 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, Dec 31, 2024 | 76.0 | 91.9 | 26.7 | 194.7 |
| Accum. | ||||
Depreciation, Jan 1, 2024 | -14.3 | -74.9 | -22.9 | -112.1 |
Depreciation for the period | -3.8 | -0.8 | -4.6 | |
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, Dec 31, 2024 | -14.5 | -78.6 | -23.3 | -116.5 |
Carrying amount, Dec 31, 2024 | 61.5 | 13.3 | 3.4 | 78.2 |
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EUR million | Dec 31, 2025 |
Passenger Car Tyres | 61.1 |
He avy Ty res | 0.9 |
Vianor | - |
Total goodwill | 62.0 |
| Impairment | Goodwill | ||
| EUR million | loss | Dec 31, 2025 | |
Passenger Car Tyres | 61.1 | - | 61.1 |
He avy Ty res | 0.9 | - | 0.9 |
Vianor | - | - | 0.0 |
Total goodwill | 62.0 | - | 62.0 |
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2025
| Machinery and | ||||
EUR million | Land property | Buildings | equipment | Total |
Accumulated cost, Jan 1, 2025 | 1.5 | 261.6 | 8.5 | 271.6 |
Increase | 0.0 | 35.0 | 2.5 | 37.5 |
Decrease | -0.1 | -38.5 | -2.2 | -40.8 |
Other changes | 0.0 | 0.0 | 0.0 | 0.0 |
Exchange differences | 0.0 | -3.0 | -0.2 | -3.2 |
Accumulated cost, Dec 31, 2025 | 1.4 | 255.2 | 8.5 | 265.1 |
Accum. Depreciation, Jan 1, 2025 | -0.4 | -144.0 | -2.8 | -147.1 |
Depreciation for the period | -0.1 | - 47.2 | -2.9 | -50.2 |
Decrease | 0.1 | 37.0 | 1.6 | 38.7 |
Other changes | 0.0 | 0.0 | 0.0 | 0.0 |
Exchange differences | 0.0 | 2.0 | 0.0 | 2.1 |
Accum. Depreciation, Dec 31, 2025 | -0.4 | -152.1 | -4.0 | -156.5 |
Carrying amount, Dec 31, 2025 | 1.0 | 103.1 | 4.5 | 108.6 |
| 2024 | Machinery and | |||
EUR million | Land property | Buildings | equipment | Total |
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 |
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2025 | 2024 | ||||||||
| Carrying | Fair value | Carrying | Fair value | ||||||
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 | 2.8 | - | 2.8 | - | 1.9 | - | 1.9 | - |
Derivatives designated as hedges | 30 | 9.9 | - | 9.9 | - | 14.1 | - | 14.1 | - |
Unquoted securities | 17 | 2.5 | - | - | 2.5 | 2.9 | - | - | 2.9 |
| Amortized cost | |||||||||
Trade and other receivables | 21 | 253.3 | - | 253.3 | - | 276.3 | - | 276.3 | - |
Money market instruments | 22 | - | - | - | - | - | - | - | - |
Cash in hand and at bank | 22 | 146.9 | - | 146.9 | - | 176.1 | - | 176.1 | - |
| Fair value through other comprehensive income | |||||||||
Unquoted shares | 17 | 0.2 | - | - | 0.2 | 0.2 | - | - | 0.2 |
Total financial assets | 415.7 | - | 412.9 | 2.8 | 471.5 | - | 468.4 | 3.1 | |
| Financial liabilities | |||||||||
| Fair value through profit or loss | |||||||||
Derivatives held for trading | 30 | 2.2 | - | 2.2 | - | 1.1 | - | 1.1 | - |
Derivatives designated as hedges | 30 | 3.5 | - | 3.5 | - | 13.2 | - | 13.2 | |
| Amortized cost | |||||||||
Interest-bearing financial liabilities | 27 | 696.9 | - | 705.4 | - | 659.6 | - | 676.8 | - |
Trade and other payables | 28 | 143.6 | - | 143.6 | - | 160.6 | - | 160.6 | - |
Total financial liabilities | 846.1 | - | 854.7 | - | 834.6 | - | 851.7 | - |
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| Invest- | |||
| ments in | Unquoted | Unquoted | |
| EUR million | associates | securities | shares |
Accumulated cost, Jan 1, 2025 | 0.1 | 2.9 | 0.2 |
Net exchange differences | - | -0.3 | - |
Carrying amount, Dec 31, 2025 | 0.1 | 2.5 | 0.2 |
Carrying amount, Dec 31, 2024 | 0.1 | 2.9 | 0.2 |
EUR million | 2025 | 2024 |
Other non-current receivables | 27.4 | 21.0 |
Total | 27.4 | 21.0 |
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| Recognized in other | ||||||
| Dec 31, | Adjustments | Recognized in | comprehensive | Net exchange | Dec 31, | |
| EUR million | 2024 | between items | income statement | income | differences | 2025 |
| Deferred tax assets | ||||||
Inventories | 10.6 | -1.4 | 9.2 | |||
Property, plant and equipment and intangible assets | 5.9 | 11.1 | 17.0 | |||
Lease liabilities | 27.9 | -2.9 | -0.6 | 24.3 | ||
Provisions and accruals | 4.2 | 0.5 | 4.7 | |||
Tax losses carried forward | 28.3 | 4.0 | 32.3 | |||
Cash flow hedges | 1.1 | 0.1 | -0.7 | 0.5 | ||
Other items | 9.0 | -8.9 | 0.1 | |||
Total | 87.1 | 0.0 | 2.4 | -0.7 | -0.6 | 88.2 |
Deferred tax assets offset against deferred tax liabilities | -32.3 | 4.5 | -27.7 | |||
Deferred tax assets | 54.8 | 0.0 | 6.9 | -0.7 | -0.6 | 60.4 |
| Deferred tax liabilities | ||||||
Property, plant and equipment and intangible assets | 7.4 | -1.9 | 5.5 | |||
Right of use assets | 26.8 | -4.3 | 0.7 | 23.2 | ||
Untaxed reserves | 0.6 | 0.0 | 0.6 | |||
Cash flow hedges | 1.0 | 0.0 | 0.4 | 1.4 | ||
Other items | 0.2 | -0.1 | 0.0 | |||
Total | 36.0 | 0.0 | -6.4 | 0.4 | 0.7 | 30.8 |
Deferred tax liabilities offset against deferred tax assets | -32.3 | 4.5 | -27.7 | |||
Deferred tax liabilities | 3.7 | 0.0 | -1.8 | 0.4 | 0.7 | 3.0 |
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| Recognized in other | ||||||
| Dec 31, | Adjustments | Recognized in | comprehensive | Net exchange | Dec 31, | |
| EUR million | 2023 | between items | income 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 | ||
Total | 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 | |||
Cash flow hedges | 0.4 | - | 0.5 | 1.0 | ||
Other items | 1.7 | -0.4 | -1.1 | 0.2 | ||
Total | 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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EUR million | 2025 | 2024 |
Raw materials and supplies | 124.6 | 116.1 |
Work in progress | 10.7 | 11.7 |
Finished goods | 290.0 | 324.2 |
Total | 425.4 | 452.1 |
EUR million | 2025 | 2024 |
Trade receivables | 253.0 | 274.0 |
Accrued revenues and deferred expenses | 19.5 | 18.3 |
| Derivative financial instruments | ||
Designated as hedges | 3.3 | 1.9 |
| Measured at fair value through profit | ||
or loss | 2.8 | 1.9 |
Current tax assets | 7.3 | 4.4 |
Value added tax receivables | 15.7 | 24.4 |
Other receivables | 6.3 | 12.3 |
Total | 307.8 | 337.1 |
EUR million | 2025 | 2024 |
Annual discounts, purchases | 3.4 | 3.7 |
Financial items | 1.2 | 1.2 |
Social security contributions | 0.0 | 0.1 |
Insurances | 1.5 | 1.4 |
Other items | 13.4 | 12.0 |
Total | 19.5 | 18.3 |
EUR million | 2025 | 2024 |
Cash in hand and at bank | 146.9 | 176.1 |
Money market instruments | - | - |
Total | 146.9 | 176.1 |
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| Number of | Paid-up | |||||
| shares, | Share | Share | unrestricted | Treasury | ||
| EUR million | 1,000 pcs | capital | premium | equity reserve | shares | Total |
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 |
Jan 1, 2025 | 137,870 | 25.4 | 181.4 | 238.2 | -16.6 | 428.4 |
Acquisition/conveyance of treasury shares | 6 | 0.2 | 0.2 | |||
Dec 31, 2025 | 137,875 | 25.4 | 181.4 | 238.2 | -16.4 | 428.7 |
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The Performance Share Plan 2023–2027 consists of three
plan periods. The Board of Directors decide annually on the
commencement and details of the plan periods. Nokian Tyres
initially announced the establishment of the PSP scheme
2023–2027 on February 7, 2023.
Performance Share Plan 2025–2026 includes a two-year
performance period, and one year restriction period (2027). The
performance targets are average earnings per share (EPS), average
return on capital employed (ROCE%) and reduction of Scope 1 &
2 CO
2
emission intensity. Subject to achieving the performance
targets, share rewards will be delivered in spring 2028.
The aggregate maximum number of shares to be paid based on
PSP 2025–2026 is 1,657,000 shares. The reward will be paid in
Nokian Tyres plc shares. The number of shares represents gross
earnings, from which the applicable payroll tax is withheld, and
the remaining net value is paid to the participants in shares. If
the participant’s employment or executive contract ends before
the reward is paid, the reward is generally not be paid.
Active Restricted Share Plans
The Board of Directors of Nokian Tyres plc approved in February
2025 the commencement of a new plan period in the company’s
long-term share-based incentive scheme, Restricted Share
Plan (“RSP”). RSP scheme serves as a complementary long-term
incentive tool, used selectively for retention of Nokian Tyres key
employees.
Nokian Tyres originally announced the establishment of the RSP
scheme on February 5, 2019.
Restricted Share Plan 2025–2027 includes a three-year
restriction period, with potential rewards delivered in 2028 in
shares of Nokian Tyres.
The aggregate number of shares to be paid based on RSP
2025–2027 is a maximum of 120,000 shares. The number of
shares represents gross earnings, from which the applicable
payroll tax is withheld, and the remaining net value is paid to the
participants in shares.
The payment of the share reward is contingent upon the
participant remaining employed by Nokian Tyres until the
reward payment date. In addition, a financial threshold has
been set for the remuneration of the members of Nokian Tyres’
Group Management Team, which must be exceeded to receive
potential reward from RSP 2025–2027. The financial indicator is
the Segments Return on Capital Employed (ROCE).
Payments for share-based plans that ended in 2024
In February 2025, the Board of Directors approved outcomes of
the Performance and Restricted share plans 2022–2024.
Performance Share Plan 2022–2024
No share-based rewards were paid under the PSP 2022–2024 as
the targets were not reached.
Restricted Share Plan 2022–2024
The three-year restriction period of the Restricted Share Plan
2022–2024 ended after financial year 2024. Under the RSP
2022–2024, a maximum total of 5,500 shares of the company
was granted without consideration to five key employees with
the terms and conditions of the RSP 2022–2024. The shares
have been acquired from the market on behalf of the recipients,
and their transfer took place on March 6, 2025.
As well RSP 2022–2024, a maximum total of 6,000 shares of
the company was granted without consideration to five key
employees with the terms and conditions. The shares have been
acquired from the market on behalf of the recipient, and their
transfer took place on August 6, 2025.
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The following tables present more specific information on the performance share plans.
Instrument | PSP 2022–2024 | PSP 2023–2025 | PSP 2024–2026 | PSP 2025–2027 | RSP 2022–2024 | RSP 2023–2025 | RSP 2024–2026 | RSP 2025–2027 | Total | |
Issuing date | Feb 8, 2022 | Feb 7, 2023 | Feb 6,2024 | May 6,2025 | Feb 8, 2022 | Feb 7, 2023 | Feb 6,2024 | Feb 4,2025 | ||
Initial amount, pcs | 513,742 | 1,400,000 | 1,760,000 | 1,657,000 | 120,000 | 120,000 | 120,000 | 120,000 | 5,810,742 | |
Dividend adjustment | No | No | No | No | No | No | No | No | ||
Initial allocation date | Feb 8, 2022 | Feb 17, 2023 | Mar 1, 2024 | May 6,2025 | Dec 19, 2022 | Dec 12, 2023 | Feb | 19,2024 | ||
Beginning of earning period | Jan 1, 2022 | Jan 1, 2023 | Jan 1, 2024 | Jan 1, 2025 | Jan 1, 2022 | Jan 1, 2023 | Jan 1, 2024 | Jan 1, 2025 | ||
End of earning period | Dec 31, 2024 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2026 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2026 | Dec 31, 2027 | ||
Vesting date | Mar 31, 2025 | Apr 30, 2026 | Apr 30, 2027 | Apr 30, 2028 | Mar 31, 2025 | Mar 31, 2026 | Mar 31, 2027 | Mar 31, 2028 | ||
| Cumulative | Cumulative | Average earnings | Continued | Continued | Continued | Continued | ||||
| Segments | EBITDA, increase in | EBITDA, increase in | per share (EPS), | employment, | employment, | employment, | employment, | |||
| earnings per share | passenger car tire | passenger car tire | average return on | segments | segments | segments return on | segments | |||
| (EPS) growth % | production volume | production volume | capital employed | return on capital | return on capital | capital employed | return on capital | |||
| and segments | and reduction | and reduction | (ROCE%) and | employed (ROCE) | employed (ROCE) | (ROCE) for | employed (ROCE) | |||
| return on capital | in direct CO 2 | in direct CO 2 | reduction of Scope | for Management | for Management | Management Team | for Management | |||
| Vesting conditions | employed (ROCE) | emissions | emissions | 1 & 2 CO 2 emission | Tea m | Tea m | (excluding new CEO) | Tea m | ||
Maximum contractual life, years | 3.1 | 3.2 | 3.2 | 3.0 | 3.1 | 3.3 | 3.3 | 3.2 | 3.1 | |
Remaining contractual life, years | 0.0 | 0.3 | 1.3 | 2.3 | 0.0 | 0.3 | 1.3 | 2.3 | 1.2 | |
Number of persons at the end of reporting year | 0 | 132 | 143 | 84 | 0 | 2 | 3 | 0 | ||
Payment method | Cash & equity | Cash & equity | Cash & equity | Cash & equity | Cash & equity | Cash & equity | Cash & equity | Cash & equity | ||
Changes during period | PSP 2022–2024 | PSP 2023–2025 | PSP 2024–2026 | PSP 2025–2027 | RSP 2022–2024 | RSP 2023–2025 | RSP 2024–2026 | RSP 2025–2027 | Total | |
| Jan 1, 2025 | ||||||||||
Outstanding in the beginning of the period | 333,066 | 1,189,218 | 1,724,744 | 0 | 12,300 | 15,000 | 110,000 | 0 | 3,384,328 | |
Reserve in the beginning of the period | 180,676 | 210,782 | 35,256 | 0 | 107,700 | 105,000 | 10,000 | 0 | 649,414 | |
| Changes during period | ||||||||||
Granted | 0 | 0 | 0 | 1,748,968 | 0 | 0 | 0 | 0 | 1,748,968 | |
Forfeited | 11,714 | 140,146 | 270,284 | 198,788 | 800 | 7,500 | 0 | 0 | 629,232 | |
Earned (Gross) | 0 | 90,923 | 0 | 0 | 11,500 | 0 | 0 | 0 | 102,423 | |
Delivered (Net) | 0 | 0 | 0 | 0 | 5,735 | 0 | 0 | 0 | 5,735 | |
Expired | 513,742 | 1,098,295 | 0 | 0 | 108,500 | 0 | 0 | 0 | 1,720,537 | |
| Dec 31, 2025 | ||||||||||
Outstanding at the of the period | 0 | 90,923 | 1,454,460 | 1,550,180 | 0 | 7, 500 | 110,000 | 0 | 3,213,063 | |
Reserved at the of the period | 0 | 0 | 305,540 | 106,820 | 0 | 112,500 | 10,000 | 0 | 534,860 |
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Fair value determination
Inputs to the fair value determination of the performance
shares expensed are listed in the below table as weighted
average values. The total fair value of the performance shares
is based on the company’s estimate in December 31, 2025 as to
the number of shares to be eventually vesting.
| 2025 | ||
| Fair value determination | ||
Share price at grant, EUR | 6.4 | |
Share price at reporting date, EUR | 9.5 | |
Expected dividend yield, % | 4.0% | |
Fair market value per share at grant, EUR | 5.7 | |
Valuation model | Dividend Discount | |
Total fair value Dec 31, 2025, EUR million | 2.4 | |
Impact on period profits and financial position | ||
Expenses for the financial year, share-based payments, EUR million | 1.9 | |
| Liabilities arising from share-based | ||
payments Dec 31, 2025, EUR million | 0.0 | |
| Estimated amount of cash to be paid | ||
under these plans, EUR million | 6.4 |
| Restruc- | |||
| Warranty | turing | ||
| EUR million | provision | provision | Total |
Jan 1, 2025 | 1.6 | 0.0 | 1.6 |
Provisions made | 1.6 | 0.0 | 1.6 |
Provisions used | 0.0 | 0.0 | 0.0 |
| Unused provisions | |||
reversed | -1.6 | 0.0 | -1.6 |
Dec 31, 2025 | 1.6 | 0.0 | 1.6 |
EUR million | 2025 | 2024 |
Current provisions | 1.6 | 1.6 |
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EUR million | 2025 | 2024 |
| Non-current | ||
Loans from financial institutions and pension loans | 544.9 | 557. 3 |
Bond loans | 99.6 | 99.4 |
644.5 | 656.7 | |
| Current | ||
Commercial papers | 39.9 | 2.0 |
Current portion of non-current loans from financial institutions and pension loans | 12.5 | 0.9 |
52.4 | 2.9 | |
Total | 696.9 | 659.6 |
| 2025 | 2024 | |||
| Without | With | Without | With | |
| hedges | hedges | hedges | hedges | |
| Loans from financial | ||||
institutions and pension loans | 3.6% | 3.9% | 4.3% | 4.3% |
Bond loans | 5.3% | 5.3% | 5.3% | 5.3% |
Commercial papers | 2.3% | 2.3% | 4.5% | 4.5% |
Total | 3.7% | 4.0% | 4.5% | 4.4% |
EUR million | 2025 | 2024 |
Financial liabilities, non-current | 644.5 | 656.7 |
Financial liabilities, current | 52.4 | 2.9 |
Lease liabilities | 114.1 | 129.6 |
Liquid funds | -146.9 | -176.1 |
Total | 664.0 | 613.1 |
| 2025 | Carrying amount, | Translation | Carrying amount, | ||
| EUR million | Jan 1 | Cash flows | differences | Other changes | Dec 31 |
Financial liabilities, non-current | 656.7 | 0.3 | - | -12.5 | 644.5 |
Financial liabilities, current | 2.9 | 36.8 | - | 12.6 | 52.4 |
Lease liabilities | 129.6 | -50.1 | -0.8 | 35.4 | 114.1 |
Liquid funds | -176.1 | 28.2 | 1.0 | - | -146.9 |
Total | 613.1 | 15.3 | 0.1 | 35.5 | 664.0 |
| 2024 | Carrying amount, | Translation | Carrying amount, | ||
| EUR million | Jan 1 | Cash flows | differences | Other changes | Dec 31 |
Financial liabilities, non-current | 404.0 | 253.5 | - | -0.8 | 656.7 |
Financial liabilities, current | 104.2 | -102.1 | - | 0.8 | 2.9 |
Lease liabilities | 130.3 | -46.0 | -1.8 | 47.1 | 129.6 |
Liquid funds | -414.9 | 238.5 | 0.3 | - | -176.1 |
Total | 223.6 | 343.9 | -1.6 | 47.1 | 613.1 |
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EUR million | 2025 | 2024 |
Trade payables | 143.6 | 160.6 |
Accrued expenses and deferred revenues | 135.2 | 131.5 |
Advance payments | 0.0 | 0.0 |
| Derivative financial instruments | ||
Designated as hedges | 3.6 | 6.2 |
Measured at fair value through profit or loss | 2.2 | 1.1 |
Current tax liabilities | 5.0 | 7.8 |
Value added tax liabilities | 25.7 | 30.3 |
Other liabilities | 14.0 | 18.0 |
Total | 329.4 | 355.5 |
EUR million | 2025 | 2024 |
| Significant items under accrued | ||
| expenses and deferred revenues | ||
| Wages, salaries and social security | ||
contributions | 37.0 | 31.5 |
Annual discounts, sales | 78.4 | 79.4 |
Commissions | 0.2 | 0.2 |
Marketing expenses | 0.9 | 1.0 |
Transportation costs | 1.2 | 0.0 |
Financial items | 6.2 | 7.2 |
Other items | 11.3 | 12.1 |
Total | 135.2 | 131.5 |
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EUR million | Dec 31, 2025 | Dec 31, 2024 | ||||||||||||||
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 | 24.2 | 41.2 | 16.9 | 0.4 | 25.1 | 22.5 | 13.4 | 0.0 | 20.5 | 29.5 | 15.0 | 2.0 | 23.6 | 11.7 | 27.0 | 0.0 |
Loans and receivables | 2.4 | 27.6 | 0.2 | 117.3 | 16.9 | 29.9 | 8.8 | 10.2 | 1.8 | 35.2 | 0.0 | 178.9 | 18.7 | 16.6 | 0.0 | 0.1 |
| Total currency | ||||||||||||||||
income | 26.6 | 68.9 | 17.2 | 117.7 | 42.0 | 52.4 | 22.2 | 10.2 | 22.3 | 64.6 | 15.0 | 181.0 | 42.3 | 28.2 | 27.0 | 0.1 |
Trade payables | -0.4 | 0.0 | -0.3 | -12.2 | 0.0 | -21.2 | -22.4 | -15.1 | -0.1 | 0.0 | -0.4 | 0.0 | 0.0 | -34.1 | -31.6 | -10.9 |
Borrowings | -27.8 | -41.7 | -7.1 | 0.0 | -18.5 | -27.4 | 0.0 | 0.0 | -21.6 | -40.1 | -8.2 | 0.0 | -13.8 | 0.0 | -1.6 | 0.0 |
| Total currency | ||||||||||||||||
expenditure | -28.2 | -41.7 | -7.4 | -12.2 | -18.5 | -48.6 | -22.4 | -15.1 | -21.7 | -40.1 | -8.6 | 0.0 | -13.8 | -34.1 | -33.2 | -10.9 |
| Foreign exchange | ||||||||||||||||
derivatives | 1.9 | -25.8 | -7.1 | -97.2 | -25.9 | -12.3 | 7.0 | 0.0 | -0.7 | -23.7 | -7.0 | -173.3 | -28.8 | -4.8 | 9.5 | 0.0 |
| Primary net | ||||||||||||||||
exposure | 0.3 | 1.4 | 2.7 | 8.4 | -2.4 | -8.5 | 6.8 | -4.9 | -0.1 | 0.8 | -0.7 | 7.7 | -0.3 | -10.7 | 3.2 | -10.9 |
EUR million | Dec 31, 2025 | Dec 31, 2024 |
| Currency of net investment | ||
CAD | 22.5 | 22.8 |
CZK | 10.6 | 14.5 |
NOK | 52.2 | 53.2 |
RON | 397.7 | 198.6 |
SEK | 44.6 | 43.3 |
USD | 469.1 | 527.7 |
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Dec 31, 2025 | Dec 31, 2024 | |||||||
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 | 0.0 | - | 0.0 | - | -0.5 | - | -0.1 | - |
EUR/CZK | 0.7 | - | -0.7 | - | 0.4 | - | -0.4 | - |
EUR/PLN | -0.3 | - | 0.3 | - | 0.1 | - | -0.1 | - |
EUR/NOK | -0.4 | - | 0.2 | - | -0.4 | - | -0.1 | - |
EUR/RON | -1.3 | - | 1.3 | - | -1.9 | - | 1.9 | - |
EUR/SEK | 0.1 | - | -0.5 | - | 0.0 | - | 0.0 | - |
EUR/USD | 0.8 | - | -0.8 | - | 1.0 | - | -1.0 | - |
191
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Dec 31, 2025 | Dec 31, 2024 | |||||||
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 | 5.9 | 5.5 | -5.9 | -5.5 | 8.8 | 5.5 | -8.8 |
Dec 31, 2025 | Dec 31, 2024 | |||||||
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 | - | 1.4 | - | -1.4 | - | 1.0 | - | -1.0 |
VPPA*, Romania | - | 2.3 | - | -2.3 | - | 2.2 | - | -2.2 |
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| 2025 | ||||||||
| Carrying | Contractual maturities* | |||||||
EUR million | amount | 2026 | 2027 | 2028 | 2029 | 2030 | 2031– | Total |
| Non-derivative financial liabilities | ||||||||
| Loans from financial institutions and pension loans | ||||||||
Fixed rate loans | 2.4 | -0.6 | -0.6 | -0.6 | -0.5 | -0.3 | - | -2.5 |
Floating rate loans | 555.1 | -32.0 | -336.4 | -128.7 | -29.4 | -25.0 | -48.1 | -599.6 |
Bond loans | 99.6 | -5.1 | -5.1 | -105.1 | - | - | - | -115.4 |
Commercial papers | 39.9 | -40.0 | - | - | - | - | - | -40.0 |
Trade and other payables | 143.6 | -143.6 | - | - | - | - | - | -143.6 |
Bank overdraft | - | - | - | - | - | - | - | - |
Lease liabilities | 114.1 | -44.2 | -27.1 | -19.3 | -11.0 | -6.7 | -17.9 | -126.2 |
| Derivative financial liabilities | ||||||||
| Interest rate derivatives | ||||||||
Designated as hedges | 1.7 | -1.3 | -0.7 | 0.1 | 0.2 | 0.3 | 0.4 | -1.0 |
| Foreign currency derivatives | ||||||||
| Measured at fair value through profit or loss | ||||||||
Cashflow out | 2.2 | -208.3 | - | - | - | - | - | -208.3 |
Cashflow in Electricity derivatives | -2.8 | 208.6 | - | - | - | - | - | 208.6 |
Designated as hedges, Finland | 0.3 | -0.3 | -0.1 | 0.0 | 0.0 | - | - | -0.3 |
Designated as hedges, Romania | -8.4 | 1.5 | 1.5 | 1.3 | 1.1 | 1.0 | 4.5 | 10.9 |
Total | 947. 5 | -265.1 | -368.5 | -252.4 | -39.6 | -30.8 | -61.1 | -1,017. 5 |
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| 2024 | ||||||||
| Carrying | Contractual maturities* | |||||||
EUR million | amount | 2025 | 2026 | 2027 | 2028 | 2029 | 2030– | Total |
| 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 | 0.0 | 0.0 | -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 |
194
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Dec 31, 2025 | Dec 31, 2024 | |||
| Trade receivables | Impairment loss | Trade receivables | Impairment loss | |
| EUR million | gross amount | allowance | gross amount | allowance |
Not past due | 231.6 | -1.0 | 248.9 | -1.1 |
Past due less than 30 days | 14.3 | -0.3 | 19.6 | -0.4 |
Past due between 30 and 90 days | 5.6 | -0.3 | 2.6 | -0.1 |
Past due between 91 and 180 days | 1.5 | -0.2 | 1.2 | -0.2 |
Past due more than 180 days | 32.1 | -30.2 | 41.2 | -37.6 |
Total | 285.0 | -32.0 | 313.4 | -39.5 |
EUR million | 2025 | 2024 |
Loss allowance, Jan 1 | 39.5 | 43.3 |
Write-offs | -8.1 | -3.3 |
Other changes | 0.9 | -0.6 |
Change in loss allowance recognized in profit or loss | -0.3 | - |
Loss allowance, Dec 31 | 32.0 | 39.5 |
195
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EUR million | 2025 | 2024 |
Average interest-bearing liabilities | 940.7 | 801.3 |
Less: Average liquid funds | 111.3 | 198.8 |
Average net debt | 829.4 | 602.5 |
Operating profit | 35.8 | 1.8 |
Add: Depreciations, amortizations and impairments | 142.2 | 124.2 |
EBITDA | 178.1 | 126.0 |
Average net debt / EBITDA | 4.66 | 4.78 |
EUR million | 2025 | 2024 |
| Equity attributable to equity | ||
holders of the parent | 1,164.2 | 1,272.4 |
Add: Non-controlling interest | - | - |
Total equity | 1,164.2 | 1,272.4 |
Total assets | 2,313.8 | 2,423.7 |
Less: Advances received | 0.0 | 0.0 |
Adjusted total assets | 2,313.7 | 2,423.7 |
Equity ratio | 50.3% | 52.5% |
196
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2025 | 2024 | |||||
| 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 | 208.3 | 2.8 | 2.1 | 318.6 | 1.8 | 1.0 |
Currency options, purchased | 10.7 | 0.0 | - | 10.9 | 0.1 | - |
Currency options, written | 15.6 | - | 0.1 | 29.4 | - | 0.1 |
| Derivatives designated as cash flow hedges | ||||||
| Interest rate derivatives | ||||||
Interest rate swaps | 300.0 | 1.4 | 3.1 | 300.0 | 7.8 | 11.8 |
| Electricity derivatives | ||||||
Electricity forwards, Finland | 9.1 | 0.1 | 0.4 | 9.0 | 0.1 | 1.3 |
VPPA*, Romania | 35.6 | 8.4 | - | 36.4 | 6.1 | - |
| *Virtual Power Purchase Agreement |
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| 2025 | |||||||
| Maturity | |||||||
2026 | 2027 | 2028 | 2029 | 2030 | 2031– | Total | |
| 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 | 3.7 | 2.9 | 1.4 | 0.7 | 8.6 | ||
Notional amount, GWh | 88 | 70 | 35 | 18 | 210 | ||
Average forward rate, e/MWh | 41.8 | 40.9 | 39.9 | 40.3 | 41.1 | ||
| Hedged item: Electricity Finnish | |||||||
| area price difference | |||||||
Notional amount, EUR million | 0.2 | 0.1 | 0.1 | 0.1 | 0.4 | ||
Notional amount, GWh | 59 | 53 | 26 | 18 | 155 | ||
Average forward rate, e/MWh | 2.8 | 2.1 | 2.9 | 3.5 | 2.7 | ||
| VPPA*, Romania | |||||||
| Hedged item: Electricity spot price | |||||||
Forecast notional amount, EUR million | 3.1 | 3.6 | 3.6 | 3.6 | 3.6 | 18.1 | 35.6 |
Forecast notional amount, GWh | 52 | 62 | 62 | 62 | 62 | 309 | 609 |
Average forward rate, e/MWh | 58.5 | 58.5 | 58.5 | 58.5 | 58.5 | 58.5 | 58.5 |
| 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 | |||||||
| 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 |
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| 2025 | |||
| Interest rate | Electricity | ||
| derivatives | derivatives | ||
| Interest rate | Electricity | ||
| EUR million | swaps | forwards, Finland | VPPA*, Romania |
Notional amount | 300.0 | 9.1 | 35.6 |
Notional amount, GWh | - | 366 | 609 |
| Assets | |||
Carrying amount | 1.4 | 0.1 | 8.4 |
| Line item in the statement of financial | Trade and other | Trade and other | Trade and other |
| position | receivables | receivables | receivables |
| Liabilities | |||
Carrying amount | 3.1 | 0.4 | - |
| 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 | -1.9 | -0.6 | -2.4 |
Hedging instrument | 1.9 | 0.6 | 2.4 |
| Effective portion | |||
Amount recognized in other comprehensive income | 1.9 | 0.6 | 1.8 |
| Amount reclassified from the cash flow | |||
hedge reserve to profit or loss | 1.0 | 0.3 | - |
Line item in the income statement | Financial items | Cost of sales | Cost of sales |
| Ineffective portion | |||
Amount recognized in profit or loss | - | - | 0.6 |
| Other operating | Other operating | ||
| income or | income or | ||
Line item in the income statement | Financial items | expenses | expenses |
| 2024 | |||
| Interest rate | Electricity | ||
| derivatives | derivatives | ||
| Interest rate | Electricity | ||
| EUR million | 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 | Other operating | ||
| income or | income or | ||
Line item in the income statement | Financial items | expenses | expenses |
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EUR million | 2025 | 2024 |
Cash flow hedge reserve, Jan 1 | 0.8 | 1.6 |
| Cash flow hedges | ||
Change in fair value recognized in other comprehensive income | ||
Interest rate swaps | 1.9 | -3.5 |
Electricity forwards, Finland | 0.6 | -3.0 |
VPPA*, Romania | 1.8 | 6.1 |
| Amount reclassified to profit or loss | ||
Interest rate swaps | 1.0 | -2.0 |
Electricity forwards, Finland | 0.3 | 1.0 |
VPPA*, Romania | - | - |
Tax effect | -1.0 | 0.5 |
Cash flow hedge reserve, Dec 31 | 5.3 | 0.8 |
EUR million | 2025 | 2024 |
| For own debt | ||
Pledged assets | 3.8 | 5.9 |
| Other own commitments | ||
Guarantees | 1.2 | 1.2 |
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34. Related party transactions
| Parent | |||||
| Group | Voting | company | |||
Domicile | Country | holding, % | rights, % | holding, % | |
| Parent company | |||||
Nokia | |||||
| Group companies | |||||
Nokian Heavy Tyres Ltd. | Nokia | Finland | 100 | 100 | 100 |
Levypyörä Oy | Nastola | Finland | 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 |
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1,000 euros | 2025 | 2024 |
| Key management personnel | ||
| Employee benefit expenses | ||
Short-term employee benefits | 4,221.4 | 4,006.4 |
Post-employment benefits | 225.7 | - |
Share-based payments | 6.3 | 19.9 |
Total | 4,453.4 | 4,026.3 |
| Remunerations | ||
| Paolo Pompei, President and CEO | ||
(January 1, 2025–) | 820.2 | - |
| Jukka Moisio, President and CEO | ||
(May 27, 2020–December 31, 2024) | - | 8 17.8 |
| Members of the Board of Directors | ||
Jukka Hienonen | 129.0 | 127.6 |
Elina Björklund | 90.0 | 85.8 |
Susanne Hahn | 72.4 | 70.3 |
Markus Korsten | 68.9 | 69.6 |
Elisa Markula | 65.4 | 62.6 |
Jouko Pölönen | 87.9 | 88.6 |
Antti Mäkinen | 61.2 | - |
1,000 euros | 2025 | 2024 |
| Prior members of the Board of Directors | ||
Pekka Vauramo | 2.8 | 88.6 |
Christopher Ostrander | 87.9 | 95.6 |
Reima Rytsölä | 4.2 | 66.1 |
Veronica Lindholm | - | 3.5 |
George Rietbergen | - | 3.5 |
Total | 669.7 | 761.8 |
1,000 euros | 2025 | 2024 |
Other key management personnel | 2,731.5 | 2,426.7 |
of which incentives for the reported period | 174.0 | 19.9 |
2025 | 2024 | |
| Granted, pcs | ||
Shares | 509,220 | 403,224 |
Share options | - | - |
| Held, pcs | ||
Shares | 116,058 | 146,855 |
Share options | - | - |
Exercisable | - | - |
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Parent company income statement, FAS
EUR Note 2025 2024
Net sales 1 814,869,138.58 799,066,104.95
Cost of sales 2, 3 -657,623,154.82 -669,940,616.41
Gross profit 157,245,983.76 129,125,488.54
Selling, marketing and R&D expenses 2, 3 -37, 897,680. 54 -35,932,822.90
Administration expenses 2, 3, 4 -49,911,384.35 -46,781,946.57
Other operating expenses 2, 3 -75,286,725.06 -118,316,404.38
Other operating income 92,889.36 230,848.27
Operating profit -5,756,916.83 -71,674,837.04
Financial income and expenses 5 -14,498,420.33 825,754.23
Result before appropriations and tax -20,255,337.16 -70,849,082.81
Appropriations 6 21,021,757.81 53,003,817.68
Income tax 7 4,248,851.29 7,384,164.17
Result for the period 5,015,271.94 -10,461,100.96
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Year 2025
Financial
Statements
Parent company balance sheet, FAS
EUR Note 2025 2024
Assets
Fixed assets and other non-current assets
Intangible assets 8 20,261,073.81 12,128,560.86
Tangible assets 8 198,052,304.84 213,742,480.33
Shares in Group companies 9 654,534,599.40 654,534,599.40
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 2,544,680.85 2,878,044.09
Total non-current assets 879,806,820.60 887,697,8 46. 38
Current assets
Inventories 10 167,245,666.66 206,373,798.10
Non-current receivables 11, 12 550,927,198.49 397, 2 90, 58 4.3 6
Current receivables 13 289,582,085.72 279,042 ,697. 57
Cash and cash equivalents 86,423,770.55 152,313,165.23
Total current assets 1,094,178,721.42 1,035,020,245.26
1,973,985,542.02 1,922,718,091.64
EUR Note 2025 2024
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 -16,378,836.41 -16,593,451.01
Fair value and hedging reserves -1,357,350.69 -4,376,391.26
Paid up unrestricted equity fund 238,231,226.51 238,231,226.51
Retained earnings 517,106,840.57 562,036,013.28
Result for the period 5,015,271.94 -10,461,100.96
Total shareholders' equity 950,560,680.44 976,779,825.08
Untaxed reserves and provisions
Accumulated depreciation in excess of plan 8 0.00 2,171,757.8 1
Provisions
Warranty provision 868,000.00 868,000.00
Liabilities
Non-current liabilities 12, 15 641,805,100.47 653,792,010.51
Current liabilities 16 380,751,761.11 289,106,498.24
Total liabilities 1,022,556,861.58 942,898,508.75
1,973,985,542.02 1,922,718,091.64
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Year 2025
Financial
Statements
Parent company statement of cash flows, FAS
EUR million 2025 2024
Result for the period 5.0 -10.5
Adjustments for
Depreciation, amortization and impairment 33.3 30.6
Financial income and expenses 14.5 -0.8
Gains and losses on sale of intangible assets, other changes -20.9 -53.0
Income Taxes -4.2 -7.4
Cash flow before changes in working capital 27.7 -41.1
Changes in working capital
Current receivables, non-interest-bearing, increase (-) / decrease (+) -30.9 -27.1
Inventories, increase (-) / decrease (+) 39.1 25.1
Current liabilities, non-interest-bearing, increase (+) / decrease (-) 0.9 -77.6
Changes in working capital 9.1 -79.6
Financial items and taxes
Interest and other financial items, received 13.5 19.8
Interest and other financial items, paid -50.5 -34.6
Dividends received 21.4 17. 2
Income taxes paid -0.1 0.0
Financial items and taxes -15.8 2.4
Cash flow from operating activities (A) 21.0 -118.3
EUR million 2025 2024
Cash flows from investing activities
Acquisitions of property, plant and equipment and intangible assets -27.8 -51.4
Proceeds from sale of property, plant and equipment and
intangible assets 2.1 0.2
Acquisitions of other investments - -85.0
Cash flows from investing activities (B) -25.7 -136.2
Cash flow from financing activities:
Change in current financial receivables, increase (-) / decrease (+) 20.9 -3.6
Change in non-current financial receivables, increase (-) / decrease (+) -149.8 -182.3
Change in current financial borrowings, increase (+) / decrease (-) 95.6 14.1
Change in non-current financial borrowings, increase (+) / decrease (-) -12.0 254.0
Group contributions 22.4 6.3
Dividends paid -38.3 -72.0
Cash flow from financing activities (C) -61.2 16.6
Change in cash and cash equivalents, increase (+) / decrease (-)
(A+B+C) -65.9 -2 37. 9
Cash and cash equivalents at the beginning of the period 152.3 390.2
Cash and cash equivalents at the end of the period 86.4 152.3
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Financial
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 10–40 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 are 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’s note no. 30.
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Financial
Statements
Notes to the financial statements of the parent company
1. Net sales by segments and market areas
EUR million 2025 2024
Passenger Car Tyres 611.8 596.7
Heavy Tyres 203.0 202.4
Total 814.9 799.1
Finland 147.7 146.3
Nordics 226.5 216.3
Other Europe 307.9 290.3
Americas 127.6 142.2
Other countries 5.2 4.0
Total 814.9 799.1
2. Personnel expenses
EUR million 2025 2024
Wages and salaries 62.7 58.5
Pension contributions 10.2 9.6
Other social expenses 1.9 1.4
Total 74.8 69.5
Remuneration of the members
of the Board of the Directors and
the President on accrual basis 1.5 1.6
No special pension commitments have been granted to the
members of the Board of Directors and no statutory pension
expense incurs. President and CEO Paolo Pompei 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 2025 2024
Total 880 886
3. Depreciation
EUR million 2025 2024
Depreciation according to plan by asset
category
Intangible assets 3.4 3.4
Buildings 2.4 2.2
Machinery and equipment 26.9 24.5
Other tangible assets 0.6 0.5
Total 33.3 30.6
Depreciation by function
Production 23.7 22.0
Selling, marketing and R&D 4.1 3.2
Administration 5.5 5.4
Total 33.3 30.6
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Financial
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4. Auditors’ fees
EUR million 2025 2024
Audit fee 0.8 0.8
Other services 0.0 0.1
Total 0.9 0.9
5. Financial income and expenses
EUR million 2025 2024
Dividend income
From the Group companies 21.4 17. 2
Total 21.4 17. 2
Interest income, non-current
From the Group companies 9.1 9.4
Total 9.1 9.4
Other interest and financial income
From the Group companies 2.4 3.8
From others 2.1 7.2
Total 4.5 10.9
Exchange rate differences (net) -11.8 -2.0
Interest and other financial expenses
To the Group companies -2.1 -2.0
To others -33.4 -30.7
Other financial expenses -2.4 -2.0
Total -37.8 -34.7
Total financial income and expenses -14.5 0.8
6. Appropriations
EUR million 2025 2024
Change in accumulated depreciation
in excess of plan
Intangible assets -2.4 3.4
Buildings 6.2 2.2
Machinery and equipment -1.4 24.4
Other tangible assets -0.3 0.6
Total 2.2 30.6
Other appropriations
Group contributions 18.9 22.4
Total 18.9 22.4
Total appropriations 21.0 53.0
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7. Income tax
EUR million 2025 2024
Direct tax for the year 0.0 -
Direct tax from previous years 0.0 0.2
Change in deferred tax 4.2 7. 2
Total 4.2 7.4
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, 2025 78.4 9.6 4.6 92.7 611.7 10.0 33.9
Increase 0.7 0.2 2.4 0.0 24.3
Decrease -0.8 -1.3 -0.1
Transfer between items 10.8 6.8 21.9 0.1 -39.7
Accumulated cost, Dec 31, 2025 90.0 9.6 4.6 98.9 634.6 10.1 18.4
Accum. depr. acc. to plan Jan 1, 2025 -66.3 -9.6 -58.1 -475.2 -5.9
Accum. depr. on disposals 0.4
Depreciations for the period -3.4 0.0 -2.4 -26.9 -0.6
Accum. depr. acc.to plan, Dec 31, 2025 -69.7 -9.6 -60.4 -501.7 -6.5
Carrying amount, Dec 31, 2025 20.3 0.0 4.6 38.5 133.0 3.6 18.4
Carrying amount, Dec 31, 2024 12.1 0.0 4.6 34.6 136.5 4.1 33.9
Accum. depreciation in excess of plan,
Dec 31, 2025 - - - - - -
Accum. depreciation in excess of plan,
Dec 31, 2024 -2.4 0.0 - 6.2 -1.4 -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, 2025 654.5 4.3 0.2 2.9
Exchange rate difference -0.3
Accumulated cost, Dec 31, 2025 654.5 4.3 0.2 2.5
Carrying amount, Dec 31, 2025 654.5 4.3 0.2 2.5
Carrying amount, Dec 31, 2024 654.5 4.3 0.2 2.9
10. Inventories
EUR million 2025 2024
Raw materials and supplies 70.9 78.5
Work in progress 3.3 4.0
Finished goods 93.0 123.9
Total 167.2 206.4
11. Non-current receivables
EUR million 2025 2024
Loan receivables from the Group
companies 513.8 363.6
Loan receivables from others 0.3 0.4
Deferred tax assets 36.8 33.3
Total long-term receivables 550.9 3 97. 3
The members of the Board of Directors and the President
have not been granted loans. Internal loans have been granted
on standard commercial terms, excluding the special loans
provided for financing the Romanian plant, some of which
are recognized as net investments in foreign operations in
accordance with IAS 21.
12. Deferred tax assets and liabilities
EUR million
Dec 31,
2024
Recognized
in income
statement
Fair
value
changes
Dec 31,
2025
Deferred tax assets
Property, plant and
equipment and
intangible assets 3.6 9.5 13.1
Provisions and accruals 0.2 0.2
Tax losses carried
forward 26.4 -6.9 19.5
Cash flow hedges
1.1
-0.7
0.4
Other Items 2.0 1.6 3.6
Deferred tax assets 33.3 4.2 -0.7 36.8
Deferred tax liabilities
Cash flow hedges 0.0 0.0 0.0
Deferred tax liabilities 0.0 0.0 0.0
EUR million
Dec 31,
2023
Recognized
in income
statement
Fair
value
changes
Dec 31,
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
On December 31, 2025 the parent company had carry forward
losses for EUR 97.7 million (EUR 132.1 million), of which a
deferred tax assets has been recognized.
Carry forward losses EUR 97.7 million will expire during years
2032–2034.
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13. Current receivables
EUR million 2025 2024
Receivables from the Group companies
Trade receivables 181.4 153.7
Loan receivables 10.6 31.6
Accrued revenues and deferred expenses 34.6 38.9
Total 226.6 224.2
Trade receivables 45.1 37.7
Other receivables 4.6 7.4
Accrued revenues and deferred expenses 13.3 9.8
Total 63.0 54.9
Total short-term receivables 289.6 279.0
Significant items under accrued
revenues and deferred expenses
Financial items 12.5 11.1
Taxes 0.5 0.4
Social payments 0.4 0.4
Goods and services rendered and not
invoiced, subsidiary 8.9 9.9
Group contributions 18.9 22.4
Other items 6.7 4.5
Total 47.9 48.6
14. Shareholders’ equity
EUR million 2025 2024
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 -4.4 1.6
Fair value changes 3.0 -6.0
Fair value and hedging reserves, Dec 31 -1.4 -4.4
Total restricted shareholders’ equity 206.6 203.6
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 1 551.6 637.9
Dividends to shareholders -34.5 -75.8
Retained earnings, Dec 31 517.1 562.0
EUR million 2025 2024
Treasury shares
-16.4 -16.6
Result for the period
5.0 -10.5
Total non-restricted shareholders’
equity
744.0 773.2
Total shareholders’ equity
950.6 976.8
Specification of the distributable funds,
Dec 31
Retained earnings 517.1 562.0
Treasury shares -16.4 -16.6
Paid-up unrestricted equity reserve 238.2 238.2
Negative fair value and hedging reserves -1.4 -4.4
Result for the period 5.0 -10.5
Distributable funds, Dec 31
742.6 768.8
No share repurchases were made during the review period, and the
company did not possess any own shares on December 31, 2025.
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, 2025, the number of these shares was 1,046,507 (1,052,242).
This number of shares corresponded to 0.75 (0.76) percent of the
total shares and voting rights in the company.
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Financial
Statements
15. Non-current liabilities
EUR million 2025 2024
Interest-bearing
Bonds 99.6 99.4
Loans from financial institutions 541.8 553.3
Deferred tax liabilities 0.0 0.0
Total 641.4 652.7
Non-interest-bearing
Accrued expenses and deferred revenues 0.4 1.1
Total 0.4 1.1
Total non-current liabilities 641.8 653.8
In March 2025, the remaining 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 2026 to April
2027. Additionally, the first extension option was exercised for
the EUR 100 million bilateral sustainability-linked term loan,
extending its maturity date from May 2027 to May 2028. In
June, new two-year bilateral revolving credit facilities totaling
EUR 100 million were signed to replace the existing facilities
of the same amount due in 2026. The new facilities include
extension options of up to two years and will serve as a backup
for general corporate purposes. In November 2025, the last
one-year extension option was exercised for a EUR 200 million
sustainability-linked revolving credit facility. Thus, the maturity
date for this facility was extended from January 2028 to
January 2029.
16. Current liabilities
EUR million 2025 2024
Interest-bearing
Liabilities to the Group companies
Finance loans 164.6 118.4
Commercial papers 39.9 2.0
Total interest-bearing liabilities 204.4 120.4
Non-interest-bearing
Liabilities to the Group companies
Trade payables 22.2 20.8
Accrued expenses and deferred revenues 26.6 19.1
Total 48.8 39.9
Trade payables 68.8 81.3
Liabilities to the others 19.6 11.1
Accrued expenses and deferred revenues 39.1 36.5
Total 127.5 128.8
Total non-interest-bearing liabilities 176.3 168.7
Total current liabilities 380.8 289.1
EUR million 2025 2024
Significant items under accrued
expenses and deferred revenues
Wages, salaries and social security
contributions 11.5 10.3
Annual discounts, sales 15.2 11.2
Financial items 11.8 13.8
Commissions 0.1 0.1
Other items 27. 2 20.2
Total 65.7 55.6
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Year 2025
Financial
Statements
17. Contingent liabilities
EUR million 2025 2024
For own debt
Pledged assets 3.7 5.8
On behalf of Group companies and
investments in associates
Guarantees 136.2 130.4
The amount of debts and commitments mortgaged for total EUR
122.4 million (2024: EUR 115.6 million).
Other own commitments
Guarantees 2.4 1.0
Leasing and rent commitments
Payments due in 2026 13.9 12.0
Payments due in subsequent years 4.6 5.9
18. Derivative financial instruments
EUR million 2025 2024
Interest rate derivatives
Interest rate swaps
Notional amount 300.0 300.0
Fair value -1.7 -4.0
Foreign currency derivatives
Currency forwards
Notional amount 215.3 328.1
Fair value 0.7 0.7
Currency options, purchased
Notional amount 10.7 10.9
Fair value 0.0 0.1
Currency options, written
Notional amount 15.6 29.4
Fair value -0.1 -0.1
Electricity derivatives
Electricity forwards, Finland
Notional amount 9.1 9.0
Fair value -0.3 -1.2
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 seven 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.
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Corporate Governance
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Year 2025
Financial
Statements
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 10, 2026
Jukka Hienonen Jouko Pölönen
Elina Björklund Susanne Hahn
Markus Korsten Elisa Markula
Antti Mäkinen Paolo Pompei
President and CEO
Signatures for the financial statements
and the report by the Board of Directors
The auditor’s
note
Report on the audit of the financial
statements has been given today.
Helsinki, February 10, 2026
Ernst & Young Oy
Authorized Public Accountant Firm
Mikko Järventausta
Authorized Public Accountant
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Corporate Governance
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Financial
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Auditor’s report (Translation of the Finnish original)
To the Annual General Meeting of Nokian Tyres plc
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, 2025. 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.
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.
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Sustainability
Statement
Corporate Governance
Statement
Year 2025
Financial
Statements
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
We refer to the accounting policies for the consolidated financial statements and note 14.
As of balance sheet date December 31, 2025, the value of goodwill amounted to 62,0 million euros
representing 2,7 % of the total assets and 5,3 % 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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Sustainability
Statement
Corporate Governance
Statement
Year 2025
Financial
Statements
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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Sustainability
Statement
Corporate Governance
Statement
Year 2025
Financial
Statements
Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors by the Annual General
Meeting on 30.3.2021, and our appointment represents a total
period of uninterrupted engagement of five 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.
Other opinions based on law
Our responsibility is to, based on our audit, express an opinion
on the registration and publication of the income tax report
required in Chapter 7 b of the Accounting Act.
The Board of Directors and the Managing Director are
responsible for the registration and the publication of the
income tax report.
In our opinion, the company has not been obliged to register
and publish an income tax report referred to in Chapter 7 b of
the Accounting Act for the financial year immediately preceding
the financial year.
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 Director of the parent company should be discharged
from liability for the financial period audited by us.
Helsinki 10.2.2026
Ernst & Young Oy
Authorized Public Accountant Firm
Mikko Järventausta
Authorized Public Accountant
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Board of Directors
Sustainability
Statement
Corporate Governance
Statement
Year 2025
Financial
Statements
Independent Auditor’s Report on the ESEF 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-2025-12-31-1-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 31.12.2025.
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.
(Translation of the Finnish original)
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Board of Directors
Sustainability
Statement
Corporate Governance
Statement
Year 2025
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-2025-12-31-1-fi.zip for the financial year
ended 31.12.2025 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
31.12.2025 has been expressed in our auditor’s report dated
10.2.2026. With this report we do not express an opinion on
the audit of the consolidated financial statements nor express
another assurance conclusion.
Helsinki 27.2.2026
Ernst & Young Oy
Authorized Public Accountant Firm
Mikko Järventausta
Authorized Public Accountant
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Board of Directors
Sustainability
Statement
Corporate Governance
Statement
Year 2025
Financial
Statements
Assurance report on the sustainability statement (Translation of the Finnish original)
To the Annual General Meeting of Nokian Tyres plc
We have performed a limited assurance engagement on the
group sustainability statement of Nokian Tyres plc (business
identity code 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 reporting period 1.1.–31.12.2025.
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), and
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).
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 requirement in the absence of
requirements for the tagging of sustainability information in the
ESEF regulation or other European Union legislation.
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 Authorized 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.
Authorized 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 Authorized Group Sustainability Auditor applies
International Standard on Quality Management ISQM 1, which
requires the Authorized 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,
• 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, and for
• 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.
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 the fact that reporting of
this type of information involves estimates and assumptions,
as well as measurement and assessment uncertainty.
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Sustainability
Statement
Corporate Governance
Statement
Year 2025
Financial
Statements
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.
When reporting future-related information in accordance with
the ESRS standards, the company’s management must present
assumptions regarding possible future events and disclose the
company’s potential future actions related to these events,
as well as prepare future-related information based on these
assumptions. The actual outcome is likely to differ, as predicted
events often do not occur as expected.
Responsibilities of the Authorized 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 management of the group as well as
key personnel responsible for collecting and reporting of 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 in relation to the
requirements of the ESRS standards, as well as whether
the information provided from the double materiality
assessment is in material respects in accordance with the
ESRS standards.
• We assessed whether the group sustainability statement
in material respects meets the requirements of the ESRS
standards regarding 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 to the
documentation and records prepared by the company
and assessed whether they support the information
included in the group sustainability statement.
• We have on a sample basis performed analytical
assurance procedures and related inquiries,
recalculations and inspected documentation, as well as
tested data aggregation to assess the accuracy of the
group sustainability statement.
• We conducted a site visit at a selected location.
• Regarding EU Taxonomy data, we gained an understanding
of the process by which a company has defined taxonomy-
eligible and taxonomy-aligned economic activities, and we
assessed the compliance of the information provided.
Helsinki 10.2.2026
Ernst & Young Oy
Authorized Sustainability Audit Firm
Mikko Järventausta
Authorized Sustainability Auditor
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Sustainability
Statement
Corporate Governance
Statement
Year 2025
Financial
Statements
Read more: company.nokiantyres.com/investors/share-and-
shareholders/share-tools/share-performance.
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, 2025 138,921,750
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, 2025, the number of shares was 138,921,750.
Read more: company.nokiantyres.com/investors/share-and-
shareholders.
Number of shareholders on December 31, 2025
Number of
shares
Number
of share-
holders
% of share-
holders
Total
number of
shares
% of share
capital
1–100 39,729 40.18 1,769,005 1.27
101–500 34,678 35.07 9,000,925 6.48
501–1,000 11,477 11.61 8,790,758 6.33
1,001–5,000 10,924 11.05 23,349,272 16.81
5,001–10,000 1,264 1.28 9,070,406 6.53
10,001–50,000 703 0.71 13,094,645 9.43
50,001–100,000 51 0.05 3,487,267 2.51
100,001–500,000 30 0.03 6,838,030 4.92
500,001– 19 0.02 63,521,442 45.73
Total 98,875 100.00 138,921,750 100.00
Shareholder structure on December 31, 2025
Number of
shares
% of share
capital
Nominee registered and non-Finnish
holders 30,622,428 22.04
Households 58,621,579 42.20
General Government 28,289,729 20.36
Financial and insurance corporations 8,513,752 6.13
Non-profit institutions 3,03 7,194 2.19
Corporations 9,837,068 7.08
Total 138,921,750 100.00
Read more: company.nokiantyres.com/investors/share-and-
shareholders/major-shareholders.
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Sustainability
Statement
Corporate Governance
Statement
Year 2025
Financial
Statements
Nokian Tyres
Group structure
Nokian Tyres plc
Nokian Däck AB Vianor Holding Oy
Nokian Dekk AS Vianor Oy
Nokian Tyres AG Vianor AB
Nokian Tyres GmbH Nordic Wheels AB
Nokian Tyres Canada Inc. Vianor AS
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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Sustainability
Statement
Corporate Governance
Statement
Year 2025
Financial
Statements
REMUNERATION
REPORT
Chair’s greetings 229
Introduction 230
Remuneration of the Board of Directors 231
Remuneration of the President and CEO 232
THE ALTITUDE OF
THE HIGHEST ROAD
IN NORTH AMERICA,
THE MOUNT BLUE
SKY SCENIC BYWAY
IN COLORADO
4,310 M
Remuneration report 2025
People and Sustainability Committee
– Chair’s greeting
Dear Shareholder,
On behalf of the People and Sustainability Committee,
I am pleased to present Nokian Tyres’ Remuneration Report
(“Remuneration Report”) for the financial year 2025. This
report outlines the remuneration paid or payable to the
members of the Board of Directors and the President and
CEO, in accordance with the Remuneration Policy.
Nokian Tyres’ Board of Directors has reviewed and approved
this report. In response to investor feedback to utilize
more details on the target setting and its transparency, the
People and Sustainability Committee has ensured that the
Remuneration Report is now presented concisely, including
relevant remuneration details alongside key financial
information of the company.
Remuneration Policy key take away
The executive remuneration of the company is designed
to advance the strategy execution, business objectives,
sustainability and long-term profitability of the company.
Nokian Tyres aims to create long-term value for its
shareholders by focusing on profitable growth. These policy
principles are considered when making decisions on the
executive remuneration. Remuneration decisions are guided
by principles of performance-based pay, sustainability, and
alignment with shareholder interests. The President and CEO’s
remuneration includes a balanced mix of fixed pay and variable
incentives, with short- and long-term components directly
linked to company performance and operating profit. This
structure ensures that remuneration supports the company’s
strategic priorities, financial success, and responsible business
practices.
Nokian Tyres performance and remuneration in 2025
When setting the short-term incentive plan criteria in 2025, the
Board of Directors considered the prevailing market conditions
and the company’s strategic focus on completing its investment
phase leading to profitable growth. Targets were to support
organizational efficiency, sustainability, and profitability. The
group-level targets for the short-term incentive plan were
segments operating profit and net cash flow. No changes were
made to Nokian Tyres’ short-term incentive plan design.
In 2025, the short-term incentive criteria for the President and
CEO Paolo Pompei were Nokian Tyres’ segments operating profit
with a weight of 60 percent, and net cash flow with a weigh of
40 percent, in total 100 percent. Nokian Tyres’ net sales for the
financial year 2025 grew by 6.5 percent and were EUR 1,373.6
million (2024: EUR 1,289.8 million) and segments operating profit
was EUR 91.3 million (2024: EUR 71.4 million). Despite cautious
consumer demand across key markets, the company made
progress in operational efficiency and strategic execution. As a
result, the short-term incentive (STI) outcome for the President
and CEO was 478,880 EUR based on the achievement of the set
financial targets.
What it comes to long-term incentives, the two-year
performance period of the Performance Share Plan (PSP)
2024–2025 ended after the financial year 2025. The rewards
from the performance period 2024–2025 were based on
EBITDA (50 percent weight), increase in passenger car tire
production volume (40 percent weight) and reduction in direct
REMUNERATION
SUPPORTS THE
COMPANY’S STRATEGIC
PRIORITIES, FINANCIAL
SUCCESS, AND
RESPONSIBLE BUSINESS
PRACTICES.
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CO
2
emissions (10 percent weight). The reduction in direct
CO
2
emissions with 10 percent weight was achieved at the
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 to eligible
employees’ will be paid in spring 2027.
The last performance period of the Performance Share
Program (PSP) 2023–2027 was approved in May 2025 by
the Board of Directors. The PSP 2025–2026 includes a two-
year performance period, and one year restriction period
(2027). The performance targets are average earnings per
share (EPS) (45 percent weight), average return on capital
employed (ROCE%) (45 percent weight), and a reduction
of Scope 1 and 2 CO
2
emissions intensity (10 percent
weight). Subject to achieving the performance targets,
share rewards will be delivered in spring 2028. Two-year
performance period was utilized in the program due to the
Romanian factory ramp up and limited visibility because of
the overall geopolitical circumstances.
Looking ahead
Going forward, Nokian Tyres focuses on profitable
and sustainable growth after completing a significant
approximately EUR 800 million investment phase. The
People and Sustainability Committee continues to
develop remuneration practices to ensure they best
support transformation and the achievement of growth
targets. We believe that fostering leadership, enhancing
employee engagement, and linking incentives to company
performance will strengthen our progress.
ELINA BJÖRKLUND
Chair of the People and Sustainability Committee
of Nokian Tyres Board of Directors
Introduction
This Remuneration Report describes how the actual
remuneration of the Board of Directors and the President and
CEO aligns with Nokian Tyres’ current Remuneration Policy and
how it promotes the company’s long-term financial success.
The Remuneration Report has been prepared in accordance with
the Securities Market Association’s Corporate Governance Code
2025 and the applicable legislation. It has been approved by the
Board of Directors and will be presented to the Annual General
Meeting 2026 for advisory resolution. At the Annual General
Meeting 2025, about 84 percent of votes (2024: 76 percent)
supported an advisory resolution to adopt the company's
Remuneration Report 2024.
The Board of Directors and the President and CEO were
remunerated in accordance with the approved Remuneration
Policy in 2025. One temporary deviation within the
Remuneration Policy allowed frame was made during the
recruitment of the new President and CEO, when he was granted
100,000 Nokian Tyres shares under Restricted Share Plan, with
separate approval from the Board of Directors. It was decided
that the Restricted Share Plan for President and CEO has
vesting period without separate defined earning criteria. Other
deviations from the Remuneration Policy were not made and no
clawback provisions were exercised in 2025.
This Remuneration Policy can be found at Remuneration Policy
/ Nokian Tyres
Development of Nokian Tyres performance and
remuneration
The following table compares the development of the
remuneration of the Board of Directors, the President and
CEO, average employee remuneration and the company’s
performance during the last five years.
The remuneration of the President and CEO is closely aligned
with Nokian Tyres’ financial and strategic performance. Since
2022, the company has navigated through significant external
challenges. During the year 2025 remuneration was aligned
with financial targets and was therefore connected to financial
performance.
Remuneration during 2021–2025
Average Board
of Directors
remuneration, EUR
1
President and CEO
remuneration, EUR
2
Average
remuneration per
employee, EUR
3
EPS, EUR
Segments
operating
profit, EUR ROCE %
2025 82,114 820,240 65,920 -0.11 91.3 1.9%
2024 83,867 817,8 54 66,570 -0.17 71.4 0.5%
2023 78,911 1,421,075 61,830 -2.36 65.1 2.2%
2022 81,167 1,502,304 67,53 0 -1.27 17. 8 3.1%
2021 70,489 1,157, 960 54,790 1.49 324.8 13.7%
1
Board of Directors remuneration - Average annual fee paid to Board members is calculated by dividing the total amount of fees paid each year to Board
members by the composition of Board (number of members) during each year (2021–2024: 9 members; and 2025: 7 Board members) and excluding fees paid to
members leaving during the following term.
2
President and CEO remuneration realised salaries and rewards reflect the total remuneration for the financial year.
3
Average remuneration per employee is calculated by dividing the total amount of salaries, incentives, and other related employee costs for the corresponding.
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Remuneration of the Board of Directors 2025
Nokian Tyres 2025 Annual General Meeting decided the following
annual and meeting fees to be paid to the Board of Directors
serving during the financial year 2025–2026. In accordance with
the resolution, approximately 60 percent of the annual fee was
paid in cash and 40 percent in company shares.
Travel expenses are reimbursed in accordance with the
company’s travel policy.
According to the Remuneration Policy, the members of the
Board of Directors cannot participate in the same share-based
remuneration schemes with Nokian Tyres management.
Annual Fees:
Chair of the Board: 115,000 euros
Deputy Chair and Chairs of the Board Committee:
76,000 euros
Other Directors: 53,500 euros
Meeting fees: 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.
Board of Directors total annual remuneration during 2025:
Board of Director 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 of Directors,
Member of the People and
Sustainability Committee and
Investment Committee, member of
the Shareholders’ Nomination Board
115,000 8,400 6,600 129,000 7,525
Elina Björklund Deputy Chair of the Board of Directors
(as of May 7, 2025), Chair of the
People and Sustainability Committee,
Member of the Investment
Committee (as of August 29, 2025)
76,000 8,400 5,600 90,000 4,973
Susanne Hahn Director, Member of the People and
Sustainability Committee
53,500 11,900 7,000 72,400 3,501
Markus Korsten Director, Member and Chair of the
Investment Committee (as of August
29, 2025)
53,500 12,600 2,800 68,900 3,501
Elisa Markula Director, Member of the Audit
Committee
53,500 8,400 3,500 65,400 3,501
Antti Mäkinen Director, Member of the Audit
Committee (as of May 7, 2025)
53,500 5,600 2,100 61,200 3,501
Jouko Pölönen Director, Chair of the Audit
Committee
76,000 8,400 3,500 87, 900 4,973
Christopher
Ostrander
Director, Chair of the Investment
Committee (until Aug 29, 2025)
76,000 10,500 1,400 87,9 00 4,973
Reima Rytsölä Director, Member of the Audit
Committee (until May 7, 2025)
- 2,800 1,400 4,200 -
Pekka Vauramo Deputy Chair, Member of the
Investment Committee (until May 7,
2025)
- 2,100 700 2,800 -
1
Stock exchange releases regarding share acquisitions were published on May 9, 2025. The company paid asset transfer taxes arising from the acquisition of shares.
Christopher Ostrander’s shares for the 2025–2026 term are restricted until 2027. This restriction replaces a claw back of shares, which would have been applied
proportionally due to Ostrander’s resignation from the Board of Directors. Because a claw back was seen as impractical and expensive, the Board determined that
the restriction period is a fair solution, especially since Ostrander is moving to a company role.
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Remuneration of the President and CEO in 2025
The President and CEO Paolo Pompei received the following
remuneration during the 2025 financial year.
Annual remuneration, EUR Pay mix
Base Salary 820,000 63%
Short-term incentive 478,880 37%
Long-term incentive 0 0%
Fringe benefits 240*
(Statutory Pension 70,951)
Total 1,299,120
*Phone benefit. Housing allowance included in the annual base salary.
Relative portions of the President and CEO’s compensation at
maximum performance level, pension and benefits excluded
Base salary 22%
Short-term incentive 22%
Long-term incentive 56%
Long-term incentive programs
The target long-term incentive (LTI) reward for the President and CEO is 125 percent of the annual base salary and the maximum
incentive is 250 percent. Paolo Pompei was invited to participate in Performance Share Plan performance period 2025–2026 and was
granted 144,427 Nokian Tyres shares at target level. In addition, Paolo Pompei was granted 100,000 share award under the Restricted
Share Plan 2024–2026 based on the Board of Directors’ separate decision when the managing director agreement was signed. It was
decided that the Restricted Share Plan for President and CEO has vesting period without separate criteria.
Performance Period 2025–2026 (restricted year 2027) 2 0 2 4 – 2 0 2 6
Long-term incentive program
and criteria. Weights in brackets.
Performance Share Plan Restricted Share Plan
Target setting scale:
10%-100%-200%
EPS Average earnings per share (45%)
Continued employment, segments return
on capital employed (ROCE) for Management
Team (excluding President and CEO)
ROCE Average return on Capital Employed percent (45%)
Reduction of Scope 1 and 2 CO
2
emission intensity (10%)
Release of shares 2028 2027
Plan achievement - -
In 2025, President and CEO Paolo Pompei received no long-term incentive payments.
2025 Short-term incentives (paid in March 2026)
The target short-term incentive (STI) for the President and CEO is 50 percent of the annual base salary and the maximum incentive
is 100 percent. The Board of Directors sets the targets annually and resolves on the incentive payout once the consolidated financial
statements have been prepared.
The short-term incentive outcome based on target setting on scale 0 (min)–100 (target)–200 (max) percent in 2025 was as follows:
Criteria
( P e r f o r m a n c e p e r i o d 1 . 1 . 2 0 2 5 – 3 1 . 1 2 . 2 0 2 5 ) Weight Target 2025 achievement 2025 STI outcome %
Segments operating profit 60% 90 EUR million 91 EUR million 104%
Net cash flow, internal metric
* 40% N/A N/A 136%
Total STI outcome: 478,880 € 100% 116.8%
The total 2025 STI payout for the President and CEO Paolo Pompei was 478,880 and it will be paid in March 2026.
* Non-disclosured business information.
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Former President and CEO Jukka Moisio’s LTI
payment
Performance Share Plan 2023–2024 payout in spring 2026: The
two-year performance period of the Performance Share Plan
2023–2024 ended. The rewards from the performance period
2023–2024 are based on the following criteria: cumulative EBITDA
(50 percent weight), increase in passenger car tire production
volume (40 percent weight) and reduction in direct CO
2
emissions
(10 percent weight). The reduction in direct CO
2
emissions with
10 percent weight was achieved at the maximum level while 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 will be paid during spring 2026 based on
prorate on his last date of employment on December 31, 2024. The
number of shares to be delivered is 11,609.
The President and CEO’s other terms:
Salary: Salary remained unchanged in 2025.
Pension: In accordance with the Finnish statutory
pension system.
Share ownership requirement: The President and CEO
must hold at least 25 percent of the shares received as
rewards from the long-term incentive plans and collect
shares from the incentive plans until the value of the
shares received from the share plans is equal to the
President and CEO’s annual gross base salary.
Dismissal: Either party can terminate with six months’
notice. The President and CEO is entitled to severance
pay if the company terminates the employment
relationship or if he terminates the contract in the event
of a change of control in the company. The amount of
the severance pay corresponds to the President and
CEO’s gross annual base salary.
Malus and claw back: 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 claw back rights during the
financial year 2025.
Performance Period 2023–2024 (restricted year 2025)
Long-term incentive
program and criteria.
Weights in brackets.
Performance Share Plan
Target setting scale:
10%-100%-200%
Cumulative EBITDA (50%)
Target: 501 M€
Outcome: 272 M€
Increase in passenger car tire
production volume (40%)
Target: Not disclosed due to
business critical information
Outcome: Not achieved
Reduction in direct CO
2
emissions
(10%)
Target: max 195 kg per produced ton
Outcome: 153 kg per produced ton
Release of shares 2026 spring
Plan achievement 20%
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Investor information and investor relations
Annual General Meeting 2026
The Annual General Meeting of Nokian Tyres plc is tentatively
scheduled for Wednesday, March 25, 2026. Invitation to the
meeting was published on February 10, 2026.
More information: company.nokiantyres.com/investors/
corporate-governance/annual-general-meeting/agm-2026.
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
2025 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 March 27, 2026. The payment
date proposed by the Board of Directors is April 15, 2026.
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 2026
Nokian Tyres will publish its financial reports in 2026 as follows:
• Interim Report January–March on April 22, 2026
• Half-year Financial Report January–June on July 17, 2026
• Interim Report January–September on October 27, 2026
The financial reports are published in Finnish and English and
are available at company.nokiantyres.com/investors/reports-
and-presentations.
Silent period
Nokian Tyres observes a silent period before issuing financial
statements, 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 Communications
Tel. +358 10 401 7581
Address:
Nokian Tyres plc
P.O. Box 20
(Visiting address: Pirkkalaistie 7)
FI–37101 Nokia
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