Sustainability

Fortum strives for balanced management of economic, social and environmental responsibility in the company’s operations. The company's sustainability approach defines Group-level targets guiding operations and the key indicators to monitor them. Based on these, the divisions set their division-level targets and indicators and outline the measures needed to achieve the targets.

The company is listed on the Dow Jones Sustainability Index World (the only Nordic utility in the index), and Fortum is also included in the STOXX Global ESG Leaders indices and in the NASDAQ OMX and GES Investment Service's new OMX GES Sustainability Finland index.

Economic responsibility

In the area of economic responsibility, the focus is on competitiveness, performance excellence and market-driven production. The aim is to create long-term economic value and enable profitable growth and added value for shareholders, customers, employees, goods suppliers, and other key stakeholders in the company's operating areas. Fortum's goal is to achieve excellent financial performance in strategically selected core areas through strong competence and responsible ways of operating. The key figures by which Fortum measures its financial success include return on capital employed (target: 12%), return on shareholders' equity (target: 14%) and capital structure (target: comparable net debt/EBITDA around 3). In addition, Fortum also uses the applicable Global Reporting Initiative (GRI) G3.1 indicators for reporting economic responsibility.

Environmental responsibility

Fortum's environmental responsibility emphasises mitigation of climate change, efficient use of resources and management of the impacts of our energy production, distribution and supply chain. Our know-how in CO2-free hydro and nuclear power production and in energy-efficient CHP production is highlighted in environmental responsibility. Fortum’s Group-level environmental targets are related to carbon-dioxide emissions, energy efficiency and environmental management system certifications. In addition, the divisions have defined their own environmental goals related to their respective business. The achievements of the environmental targets are monitored through monthly, quarterly and annual reporting.

Fortum’s climate targets over the next five years comprise specific CO2 emissions from power generation in the EU of below 80 grams per kilowatt-hour (g/kWh) and specific CO2 emissions from the total energy production (electricity and heat) of below 200 g/kWh, covering all operating countries. Both targets are calculated as a five-year average.

At the end of June 2012, the five-year average for specific CO2 emissions from power generation in the EU was at 63 g/kWh and the specific CO2 emissions from the total energy production was at 173 g/kWh, both better than the target level. Fortum's total CO2 emissions in January–June 2012 amounted to 10.7 (14.0) million tonnes (Mt), of which 2.6 (5.7) Mt were within the EU's emissions trading scheme (ETS).

In January–June 2012, approximately 67% (58%) of the power generated by Fortum was CO2-free. The corresponding figure for Fortum's generation within the EU was 92% (79%).The main reason behind the high share of CO2-free power is that no condensing power was produced at the Inkoo and Meri-Pori coal-fired power plants.

Overall efficiency of fuel use was 68% as a five-year average, the target is >70%. At the end of the second quarter of 2012, 95% of Fortum’s operations globally had ISO 14001 environmental certification.

Fortum’s total CO2 emissions (million tonnes, Mt) II/12 II/11 I-II/12 I-II/11 2011 LTM
Total emissions 4.1 4.6 10.7 14.0 23.6 20.2
Emissions subject to ETS 0.7 1.5 2.6 5.7 8.3 5.0
Free emissions allocation   -   - 6.8  
Emissions in Russia 3.2 2.8 7.9 7.6 14.8 15.0
             
Fortum’s specific CO2 emissions from power generation (g/kWh) II/12 II/11 I-II/12 I-II/11 2011 LTM
Total emissions 168 178 172 222 192 167
Emissions in the EU 31 75 47 133 88 46
Emissions in Russia 549 460 503 469 483 501

Social responsibility

In the area of social responsibility, Fortum's innovations and the secure supply of low-carbon power and heat support the development of society and increase well-being. Good corporate citizenship and ensuring a safe working environment for all employees and contractors at Fortum sites are emphasised. A Group-level target has been defined for occupational safety. In addition to ISO 14001, the goal is to have OHSAS 18001 certification for all operational management systems. In January–June 2012, the Group-level lost workday injury frequency (LWIF) continued at a good level at 1.7 (2.3). An unfortunate fatal accident occurred to a Fortum contractor in Russia in April. Fortum’s safety target is to reach a LWIF level that is less than one per million working hours for its own personnel. This reflects the Group’s zero tolerance for accidents.

Fortum wants to conduct business with viable companies that act responsibly and comply with the Fortum Code of Conduct and Fortum Supplier Code of Conduct. In January–June 2012, altogether six supplier audits were conducted. In the beginning of 2012, Fortum joined the Better Coal Initiative, aiming for continuous improvement of corporate responsibility in the supply chain of coal.