Business ethics and compliance

We believe there is a clear connection between high standards of ethical business practices and excellent financial results. As an industry leader, we obey the law, we embrace the spirit of integrity, and we uphold ethical business conduct wherever we operate.

Code of Conduct sets the basic requirements

The Fortum Code of Conduct and Fortum Supplier Code of Conduct define how we treat others, engage in business, safeguard our corporate assets, and how we expect our suppliers and business partners to operate.

In line with the Code of Conduct, Fortum has zero tolerance for corruption and fraud and does not award donations to political parties or political activities, religious organisations, authorities, municipalities or local administrations.

Compliance risks

The compliance risks related to our business operations include the potential risk of bribery or corruption, fraud and embezzlement, non-compliance with legislation or company rules, conflicts of interest, improper use of company assets, and working under the influence of alcohol or drugs.

Compliance risk management is an integrated part of business operations, and key compliance risks, including action plans, are identified, assessed and reported annually. This applies also to the management of risks related to sustainability. During 2016, Fortum has launched a Total Compliance programme which covers key areas of regulatory compliance and business ethics.

Training

As part of the Total Compliance programme, a training plan is developed annually. In 2016, training on compliance with regulations was provided in Russia and India. The new Fortum employees acquired through an acquisition in Poland received Fortum’s Code of Conduct training related to business ethics.

Training on the new Market Abuse Regulation and insider regulations was provided for certain management teams. Training on internal controls was also arranged for division-level management teams. Training on competition law issues was provided for the functions responsible for sales and for the individuals joining Fortum through acquisitions.

Reporting misconducts

In addition to internal reporting channels, Fortum has an external “Raise a concern” channel. The same mechanism is used for reporting any suspected misconduct relating to the environment, labour practices or human rights violations, and it is available to all stakeholders. In Russia, Fortum has a separate compliance organisation in place and employees there are encouraged to use the channels provided by the compliance organisation. They may, however, also use the “Raise a concern” channel should they so wish.

Suspected misconduct and measures related to ethical business practices and compliance with regulations are regularly reported to the Fortum Executive Management and to the Board’s Audit and Risk Committee.

4/5/2017