Governance and management

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 2016 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.

Responsibilities

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 the Fortum Executive Management, and other senior executives support the Board of Directors in the decision-making in these matters, when necessary.;

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 safety targets is part of Fortum’s incentive system. Fortum’s Corporate Sustainability unit is responsible for coordination and development of sustainability at the Group level and for maintaining an adequate situation awareness regarding sustainability.

Sustainability management by topic

Sustainability management in the areas of economic responsibility, environmental responsibility and social responsibility is described in more detail in our Sustainability report.


 

4/5/2017