We have defined our most important sustainability focus areas in the areas of economic, social and environmental responsibility:
Our focus areas are based on Fortum’s and our stakeholders’ views of the significance of the impacts on the company and its ability to create value for its stakeholders and on the environment. Our understanding of stakeholder views is based on the results of the extensive stakeholder surveys conducted annually as well as on information gained through other stakeholder collaboration.
In 2015 a total of 2,133 stakeholder representatives, more than 60% of them representing personnel, participated in our separate sustainability survey. In the 2015 sustainability survey for stakeholders, decision makers, organisations, employees and the general public put special emphasis on the significance of security of supply of heat and electricity, management of sustainability-related risks, and sustainable ways of operating. Our personnel emphasised the safety of operations. The general public considered the use of renewable energy sources as important.
Realisation of sustainability targets in 2015
The Fortum Executive Management decides on the sustainability approach and the Group-level sustainability targets that guide annual planning. The targets are ultimately approved by Fortum’s Board of Directors. The 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. In addition to the Group-level targets approved by Fortum’s Board of Directors, Fortum also has division-level targets.
Group sustainability targets and performance
- From our stakeholders’ perspective, our performance developed positively, and both our reputation and customer satisfaction improved.
- We achieved our target also in specific carbon dioxide emissions. In 2015 our specific carbon dioxide emissions in the EU area were 21 gCO2/kWh and specific emissions from total energy production 181 gCO2/kWh.
- The Suomenoja heat pump station and the Joensuu power plant’s flue-gas condenser contributed to the energy efficiency improvement in our production in Finland. Boosting the operational efficiency of our turbine plants improved the energy efficiency at the Argayash and Chelyabinsk CHP3 power plants in Russia. The implemented projects resulted in an annual energy savings of about 559 GWh.
- We strive to be a safe workplace for our employees and for our contractors’ employees. In 2015 the injury frequency for own employees remained at a low level, and the injury frequency for our contractor employees improved, but the number of serious injuries was still too high. There were no accidents leading to a fatality during the year.
- To ensure supply chain responsibility, our goal was to audit 15 fuel and goods suppliers. As part of our contractor selection process, in India we focused on auditing potential solar plant contractors. Altogether, we audited nine suppliers in five countries.
Sustainability targets affect every Fortum employee
Sustainability targets affect every Fortum employee and are part of Fortum’s short-term incentive scheme. Fortum’s Board of Directors annually decides on the sustainability targets to be included in the incentive scheme. In 2015 the incentive scheme included an index measuring injury frequency for Fortum employees and for contractors, the number of serious injuries, the number of major environmental, health and safety incidents (EHS incidents), and Fortum’s ability to improve its performance in the Dow Jones Sustainability Assessment.
The injury frequency for Fortum employees and for contractors and the number of serious occupational accidents will be included in the 2016 incentive scheme. In 2016, the weight of the sustainability index in the incentive scheme is 10% (2015: 20%).
Our targets for 2016
Our sustainability targets are based on continuous operational improvement. There are still too many serious injuries, leading to absences of over 30 days, occurring in our operations; our most important goal is to cut the number of these injuries by half. We are aiming for no serious injuries by 2020.
We believe that workplace well-being supports the achievement of our strategic goals, and for this reason a work well-being indicated as a percentage of sickness-related absences, was approved as a new Group target starting from 2016. Our target is to maintain our currently low rate of sickness-related absences (2.4% of working hours).
In terms of specific carbon dioxide emissions from our production (gCO2/kWh), we decided to focus on measuring Group-level specific emissions from our total energy production (electricity and heat production in all countries). Previously, we measured the specific emissions from electricity production also in the EU area, but this figure covers only about 10% of our carbon dioxide emissions, so its production-guiding impact is minor.
Group sustainability targets in 2016