Quarterly summary of events

Announcements during Q1 2024

Launch of the Green Finance Framework

Fortum announced on 22 January 2024 that the company has established a Green Finance Framework to further integrate the company’s sustainability ambitions into its financing. The Green Finance Framework allows Fortum to raise capital via green bonds and loans (Green Debt) to refinance and finance renewable energy and energy efficiency projects, and/or nuclear power projects. Fortum will always inform at issuance if it intends to finance any nuclear power generation projects with the proceeds of a given Green Debt instrument. Projects financed by Green Debt may include fixed assets, capital expenditures and/or operational expenditures (including R&D expenditures). Read the release: Fortum launches Green Finance Framework | Fortum

Fortum clarified its strategic focus and targets

At the beginning of February 2024, the Fortum Board of Directors resolved on clarifications to Fortum’s strategy. As the operating environment shows increased uncertainty, reduced visibility and postponement of industrial investments, the company has specified its business portfolio, clarified capital allocation and set new strategic targets with measurable key performance indicators (KPIs). Launched in March 2023, Fortum’s renewed strategy with focus on the Nordics remained unchanged, as well as its strategic priorities to ‘deliver reliable clean energy’, ‘drive decarbonisation in industries’, and ‘transform and develop’. The company’s financial and environmental targets were also unaltered. Read the release: Fortum clarifies its strategic focus and targets in response to the changed operating environment | Fortum

Credit Rating announcements

On 25 March, S&P Global Ratings upgraded Fortum’s long-term credit rating to BBB+ with Stable Outlook. The previous rating was BBB with Stable Outlook. Read the release: S&P Global Ratings upgrades Fortum’s long-term rating to BBB+ with Stable Outlook | Fortum

On 18 March, Fitch Ratings affirmed Fortum’s long-term credit rating at BBB with Stable Outlook. Read the release: Fitch Ratings affirms Fortum’s long-term rating of BBB with stable outlook | Fortum

Decisions by Fortum’s Annual General Meeting 2024

The Annual General Meeting of Fortum Corporation 2024 was held at Messukeskus in Helsinki, Finland on 25 March 2024. Link to the decisions by the AGM: Decisions by Fortum Corporation's Annual General Meeting 2024 | Fortum

Other major announcements during the quarter

Fortum and the Finnish National Emergency Supply Agency, Huoltovarmuuskeskus (NESA) announced on 26 February that they had agreed to postpone the transition of Fortum’s Meri-Pori power plant to security of supply use by one month. According to the original agreement on 30 October 2023, starting from 1 March 2024, the plant was to be dedicated for use only in the event of severe disruptions or emergencies in the electricity system. The updated agreement now reserves the production of the power plant for NESA for the period 1 April 2024–31 December 2026. By this arrangement the risk of electricity shortages in March were reduced. Read the release: Fortum’s Meri-Pori power plant continues to be operated commercially in March | Fortum

Fortum announced on 4 March that it had decided to close the last coal-fired unit used for district heat production in Finland on 28 of April 2024. The unit at the Suomenoja production plant in Espoo is approaching the end of its useful life and further investments in it are no longer technically and economically viable. As a result of the decision, Fortum's Heating and Cooling business will phase out coal in Finland one year earlier than expected. Read the release: Fortum to end the use of coal in Finnish district heat production ahead of schedule | Fortum

Financial calendar for 2024