Sustainability management at Fortum is strategy-driven and is based on the company’s values, the Code of Conduct, the Supplier Code of Conduct and the policies and their specifying instructions defined at the Group level. We comply with laws and regulations. All of our operations are guided by good governance, effective risk management, adequate controls and the internal audit principles supporting them.
Fortum’s goal is a high level of environmental and safety management in all business activities. Calculated in terms of sales, 99.9% of Fortum’s electricity and heat production operations at the end of 2015 were ISO 14001 and OHSAS 18001 certified. The divisions and sites develop their operations with internal and external audits required by environmental, occupational safety and quality management systems.
Sustainability is an integral part of Fortum’s strategy and the highest decision-making authority in these issues is with the Board of Directors, which has joint responsibility in matters related to sustainability. For this reason, Fortum has not designated a Sustainability Committee for decision-making on economic, environmental and social issues. The Audit and Risk Committee, members of Fortum Executive Management and other executives support the Board of Directors in the decision-making in the aforementioned matters, when needed.
The Fortum Executive Management decides on the sustainability approach and Group-level sustainability targets that guide annual planning. The targets are ultimately approved by Fortum’s Board of Directors. Fortum Executive Management monitors the achievement of the targets in its monthly meetings and in quarterly performance reviews. The achievement of the targets is regularly reported also to Fortum’s Board of Directors.
Fortum’s line management is responsible for sustainability management, and realisation of the targets is part of Fortum’s incentive system.
Corporate Sustainability unit
Fortum’s Corporate Sustainability unit is responsible for coordinating and developing sustainability at the Group level. The Corporate Sustainability unit works in close collaboration with the business functions as well as with functions responsible for risk management and for internal audit and controls. Collaboration with the units responsible for Legal, Mergers and Acquisitions, Strategy, Purchasing, Corporate Relations and Public Affairs is an ongoing activity.
The Corporate Sustainability unit gives sustainability approval for all significant investments, acquisitions and divestments as part of Fortum’s investment evaluation and approval procedure. In addition, the unit participates in the Group’s market outlook and public affairs processes and supports the Investor Relations function with its expertise.
Sustainability management by topic
Sustainability management in the areas of economic responsibility, environmental responsibility and social responsibility is described in more detail in the accompanying tables. Additionally, more detailed information about the management of different aspects and impacts is presented by topic on our sustainability web pages.