Labour practices

​Fortum’s management of sustainability in the area of Labour practices and decent work in social 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.

Management of social responsibility: labour practices and decent work Description​
Targets and approach​

​We aspire to be a desired and safe workplace for our employees and for contractors and service providers working for us. We believe that all injuries can be avoided. Our social responsibility targets are related to employee well‑being and competence development, work and process safety, responsible business practices and responsible operations in our supply chain, and good corporate citizenship.

We measure the realisation of the social responsibility with the following indicators, for which we have set Group-level targets (targets for 2015 and 2016):

  • Total Recordable Injury Frequency (TRIF) and Lost Workday Injury Frequency (LWIF), own personnel
  • Lost Workday Injury Frequency (LWIF), contractors
  • Number of serious occupational accidents, own personnel and contractors
  • Percentage of sickness-related absences (in 2016)
Additionally, we have a Group-level target for the number of supplier audits (aspect: supplier labour practices).
Policies​ ​Safety management is based on Fortum’s sustainability policy.
Other key elements steering labour practices and safety management are presented in the section Policies and commitments.
 
We assess safety risks as part of the Group’s risk assessment process.
Everyday safety management is guided with about 20 Group‑level Environment, Health and Safety (EHS) instructions and EHS training events. The Group‑level instructions are supported by local‑level instructions, which address in more detail the material safety issues and local special requirements. They include, e.g., nuclear power plant safety and dam safety. The instructions cover Fortum employees and contractor employees.
 
Personnel management is based on Fortum’s human resources policy and the supporting Group‑level HR processes: strategic planning, recruiting, personnel development, performance management, remuneration, and employment and workforce administration.
​Responsibilities ​Our sustainability responsibilities are presented in the section Governance and management.
Monitoring and follow-up​ Fortum employee and contractor injury frequency and the number of serious accidents are reported monthly to Fortum Executive Management. The key indicators for safety are reported regularly to Fortum’s Board of Directors and are published in Fortum’s Interim Reports.
 
The divisions and sites develop their operations with audits required by occupational safety and quality management systems. Internal and external auditors regularly audit our OHSAS 18001 standard-compliant management system.
 
Starting at the beginning of 2016, work wellbeing, indicated as a percentage of sickness-related absences, will be measured and reported to the Fortum Executive Management every quarter. Work wellbeing is also monitored through other Group-level indicators, such as the ratio between actual retirement age and the statutory start of the retirement pension. 
 
Monitoring work well‑being is also part of the Fortum Sound employee survey. The survey’s well‑being index measures employee views on, e.g., the openness of the dialogue in the work community, personal accountability, and how challenging work tasks are.
 
We assess the level of operations of our business partners through pre-selection and supplier audits. The results of the supplier surveys and audits assessing the realisation of labour rights and practices are recorded along with corrective measures into the supplier database, which is accessible to all Fortum employees. Fortum has set a Group target for the number of audits, and the audits that are conducted are reported quarterly to operative management.
 
For coal, we use the Bettercoal Code and tools in assessing the sustainability of the supply chain. The Bettercoal audits are always conducted by third parties.
 
We map our stakeholders' views annually with the One Fortum survey and with separate sustainability surveys.

 

7/14/2016