Richard Edwards

Finnish mobile phone giant, Nokia, has saved more than €100m by placing a greater emphasis on the reduction of packaging, SustainableSourcing has learned.

The huge figure demonstrates that the company’s green approach is reaping rich rewards from both a sustainability and a financial perspective.

“We feel we have a responsibility to make a difference,” was how Nokia CEO Olli-Pekka Kallasuvo summed up his company’s approach to sustainability after receiving the inaugural award for Outstanding Environmental Contribution at the annual GSMA Awards last week.
 
It’s little wonder, therefore, that other companies are following Nokia’s lead. “All the manufacturers are exploring ways in which they can save on costs and save the environment,” says Tom Byrd, an industry analyst at CCS Insight. “There’s a rush to reduce packaging across all devices.” [Read about the World Economic Forum's report on supply chain carbon reduction].
 
The mobile phone industry has been hit hard by the recent financial turmoil, and with many analysts predicting that even tougher times lie ahead in 2009, the likes of Nokia, Motorola and Samsung are coming under increasing pressure to make themselves more desirable to increasingly cost-focused and environmentally-conscious consumers.
 
Few companies, however, can match Nokia’s recent sustainability record, with the firm’s recycling programme – currently operating in 86 countries – proving to be a massive success. “Recycling is very important and we continue to do a lot there, but there are also real opportunities with energy efficiency and creating services that help people make more sustainable choices,” said Kirsi Sormunen, Nokia’s vice president in charge of environmental affairs.
 
Challenges do though, remain.
 
“There is a major push for all manufacturers to adopt the same chargers across their product ranges – if that happened it could save 50,000 tons of waste a year, which is a huge number,” says Byrd. 
 
“From a sourcing standpoint the major issues facing the big firms in the marketplace are to ensure that the products they’re purchasing are free of certain chemicals. Companies like Nokia are working closely with their supply base and really putting pressure on component manufacturers to make sure that their products are as green as possible.”
 
The cost savings achieved by Nokia illustrate the opportunities that exist and the company’s sustainability drive shows no sign of slowing.
 
“Environmental sustainability is not just the right thing to do, it is the only thing to do,” said Kallasuvo. “I have long maintained that doing the right thing for the environment also makes good business sense.”

Next month, the iHollywood Forum will host a “Hollywood Goes Green conference, at which sustainable solutions will be discussed with studio chiefs who are under pressure to cut costs.

The news is likely to be welcomed by some of the silver screen’s biggest stars, many of whom are actively involved in environmental campaigns.

“While celebrities have long been environmental activists, studios and production companies have been cautious about adopting the green philosophy as it applies to their business operations,” said Zahava Stroud, of iHollywood Forum.

Many studios already have departments dedicated to reducing their carbon footprints, although the biggest challenge remains cutting down on the emissions caused by large-scale, but often temporary film sets.