Fortum’s management of sustainability in the area of economic performance is described below. Additionally, more detailed information on the management of the different aspects and impacts is presented by topic on our sustainability web pages.
|Targets and approach
Our goal is to achieve excellent financial results in strategically selected core areas through strong expertise and responsible ways of operating. We believe that competitiveness, security of supply and market‑driven production enable long‑term profitable growth. A financially strong company can shoulder responsibility for the environment, take care of its employees, monitor its supply chain, meet customer expectations, and produce excellent value to its shareholders.
Each new research and development target is assessed against the criteria of carbon dioxide emissions reduction and resource efficiency. Likewise, each new investment proposal is assessed against sustainability criteria as part of Fortum’s investment assessment and approval process. In our investments we seek the kinds of economically profitable alternatives that provide the opportunity to increase capacity and reduce emissions.
We measure financial performance with the return on capital employed (target: 10%) and capital structure (target: comparable net debt/EBITDA about 2.5).
The realisation of financial targets in 2014 is reported in the Financial performance and position section of the Financial Statements
||The financial management system is based on Group‑level policies and their specifying instructions, and on good governance, effective risk management, sufficient controls and the internal audit principles supporting them. Other key elements steering financial management are presented in the section Policies and commitments.|
||The CFO and the Group’s Financial unit, division management, and ultimately the CEO and the Board of Directors, are responsible for issues related to finances and financial statements and for broader financial responsibility issues.|
|Monitoring and follow-up
||The Board decides on the company’s financial targets as a part of the annual business planning process. Realisation of the targets is monitored on monthly basis both at the division level and by the Fortum Executive Management. Fortum’s management monitors the realisation of financial targets quarterly as part of the business performance assessment, and key indicators are regularly reported to Fortum’s Board of Directors. Financial key indicators related to investments are monitored in investment forums. |