Acting responsibly for society
Fortum impacts the everyday lives of millions of people through its businesses. Our innovations and the secure supply of power and heat support the development of society and increase well-being. We want to support responsible operations in our supply chain and in society at large by respecting internationally recognised human rights, being a good corporate citizen and mitigating environmental impacts caused by our operations.
Improving sustainability performance together
We actively strive to reduce the environmental impacts related to our supply chain and to improve economic and social well-being. We expect our business partners to act responsibly and to comply with the Fortum Code of Conduct and the Supplier Code of Conduct. Our key tools in supply chain management are country and counterparty risk assessments, supplier qualification and supplier audits.
The Supplier Code of Conduct sets the sustainability requirements for suppliers of services and goods. It is based on the principles of the United Nations Global Compact initiative and is divided into four sections: anti-corruption, human rights, labour standards and the environment.
We annually select suppliers for sustainability audits based on a risk assessment. If non-compliances are found, the supplier makes a plan for corrective actions and we monitor their implementation. The most common non-compliances identified in the audits are related to occupational safety, overtime working hours, remuneration and management of the suppliers’ own subcontractors.
Respecting internationally recognised human rights
Our goal is to operate in accordance with the UN Guiding Principles on Business and Human Rights, and to apply these principles to our own operations as well as in country and partner risk assessments and supplier audits.
We carry out a sustainability assessment for our investment projects including a human rights evaluation, especially in new operating areas.
Fortum respects employees’ freedom of association and the right to collective bargaining. All forms of child and forced labour are strictly prohibited and in violation of Fortum’s Code of Conduct.
In support of the common good in society
We communicate openly, honestly and proactively, and we engage in a dialogue with the stakeholder groups located in the vicinity of our power plants.
Hydropower has the most significant impacts on local communities and local forms of land use out of all our energy production forms. We mitigate and compensate the adversities caused by hydropower production through numerous measures, such as stocking fish and promoting recreational use of waterways.
In India, we support local communities with several projects in the vicinity of our solar power plants. Among other things, we have improved water service in the villages as well as lighting and cooling with fans for health care centre and schools.
Fortum also does significant collaboration with different research and development projects, particularly with Nordic universities. The goal of the collaborations with universities and colleges is to develop Fortum’s business, promote energy-sector research and development, and foster Fortum’s recruiting and training opportunities.
Our sponsoring focuses on the wellbeing of children and youth, renewable energy projects, R&D and innovations supporting Fortum’s strategy, recycling, recovery and reutilisation.
Maintaining an active dialogue with key stakeholders
Our way of operating responsibly entails continuously identifying the views of our stakeholders and balancing between the different expectations. Dialogue, feedback and good collaboration are key ways of promoting a mutual understanding.
Fortum has an informal Advisory Council consisting of representatives of Fortum’s stakeholder groups as appointed by the Board of Directors. The Advisory Council aims to facilitate the dialogue and the exchange of views between the company and its stakeholders.
In collaboration with third parties, we annually conduct surveys regarding stakeholder collaboration. We use the survey results in business planning and development and in identifying material aspects in corporate responsibility.
Our key stakeholders are the following:
- Lenders and shareholders
- Service and goods suppliers
- Authorities and decision-makers
- Energy sector organisations
- Non-governmental organisations
- Local communities