Fortum's goal is to include sustainability related issues in everyday management. This means that each Division head, and ultimately the President and CEO and Board of Directors, is also accountable for sustainability. Fortum applies principles of good corporate governance that strive to establish and maintain transparent governance at all levels of the organisation.
For more information on corporate governance and the duties, quorum, and representatives (including fees and compensations) of different governing bodies, see the annual report. The Annual General Meeting decides the compensations for the Board of Directors.
Fortum has not appointed any members of the Board specifically conversant with sustainability. If necessary, the Board discusses sustainability related issues raised either by the Fortum Management Team or the Sustainability & Public Affairs steering group.
The Corporate Relations and Strategy (CR&S) function is responsible for coordinating and developing sustainability at the Group level. Its Executive Vice President reports to the CEO and is a member of the Fortum Management Team. The Executive Vice President of the Corporate Relations and Strategy function also serves as chairman of the Sustainability & Public Affairs steering group. The steering group consists of representatives from division management teams and VPs from different Group functions. Tasks of the steering group are, for example, to ensure that Fortum’s Sustainability Agenda is implemented consistently and efficiently throughout the organisation, and to provide information for Fortum’s strategy and planning processes.
The CR&S function gives sustainability approval (environmental, occupational health, safety and social impacts) for all significant investments, acquisitions and divestments as part of Fortum’s Investment Evaluation and Approval Procedure. The procedure and guidelines were revised during 2011.
Clearly defined line responsibility
The Fortum Management Team decides on company-level strategic alignments and policies and target setting that guide annual planning, including the Sustainability Approach.
The Divisions define their detailed objectives and targets and develop action plans, and ensure that sustainability objectives are included among the business objectives.
The Fortum Management Team monitors achieving objectives regularly in its monthly meetings and in quarterly performance reviews. Fortum discloses information about its performance in Interim Reports, in its annual reports, in separate sustainability reports, and on this website.
Corporate functions support business operations
Corporate functions maintain cooperation networks to promote the flow of information and to develop common goals and procedures in the whole company. The Climate network and the EHS network are examples of regularly operating sustainability networks. Other networks are established on an ad hoc basis; in 2011, a cross-divisional network of bioenergy experts focused on Fortum’s positions and actions regarding the sustainable use of bioenergy.