Fortum as a responsible and sustainable investment

We are committed to carbon neutrality and protecting biodi­versity. Our core business – reliably deliv­ering clean energy – is more important than ever. We are once again one of the cleanest energy gener­ators in Europe, and have the ambition to become a leader in sustain­ability.

Fortum highlights the importance of decarbonisation and climate change mitigation, while at the same time the necessity to secure reliable and affordable energy for all. Fortum also gives balanced consideration in its operations to the promotion of energy efficiency and a circular economy, as well as its impacts on personnel and societies.

Our targets:

Environ­mental targets:

SBTi 1.5.C
  • Emission reduction according to SBTi 1.5 C trajectory. This commitment assumes full exit from Russia.
  • Target for specific emissions at below 20g CO2/kWh for total energy production and at below 10g CO2/kWh for power generation by 2028.
Carbon neutrality by 2030 (all Scopes 1, 2 and 3)
  • Coal exit in our own operations by the end of 2027
  • No net loss of biodiversity from existing and new operations in Scopes 1 and 2 from 2030 onwards, excluding all aquatic impacts.
  • 50% reduction in dynamic terrestrial impacts in upstream Scope 3 by 2030 compared to 2021
  • Commitment to continue local initiatives and develop science-based methodology with partners to assess the aquatic impacts of hydropower.

Personnel and society

Fortum strives to be a safe workplace for the employees, contractors and service providers who work for the company. A certified ISO 45001 safety management system covers 100% of Fortum’s power and heat production worldwide.

In 2023, Fortum’s TRIF (Total Recordable Injury Frequency) for own personnel and contractors was 5.0 (4.0). Fortum’s LTIF (Lost Time Injury Frequency) for own personnel and contractors was 3.9 (2.3). Fortum strives for zero severe occupational accidents. In 2023, there were no (2) severe occupational accidents in the operations.

The 2023 safety targets included participation in the Management Safety and Security Leadership Programme, as well as identification and completion of key safety actions to improve safety culture. In 2023, the completion rates of planned Management Safety and Security Leadership trainings and Safety improvement plan were 100% and 78%, respectively.

Fortum’s goal regarding workplace wellbeing activities is to promote the health and occupational safety of employees and the functionality of the work community. The sickness-related absences target for year 2023 is 3.0%. In 2023, Fortum’s percentage of sickness-related absences was 3.1 (3.4). 

Fortum’s approach to human rights due diligence is based on the UN Guiding Principles on Business and Human Rights and follows the six steps outlined in the OECD Guidelines for Multinational Enterprises. Human rights due diligence is an ongoing process where risks and impacts are assessed continuously as part of various processes. Fortum’s approach to human rights and the due diligence process is disclosed on Fortum’s website.

Fortum expects its business partners to act responsibly and to comply with the requirements set forth in the Code of Conduct and Supplier Code of Conduct. Fortum assesses the performance of its business partners with supplier qualification, with supplier audits and with a Know Your Counterparty process. In 2023, Fortum conducted seven on-site supplier audits in China. Fortum is a member of the Bettercoal initiative and uses the Bettercoal tools to improve sustainability in the coal supply chain. In 2023, Fortum continued to support and participate in the development of the Solar Stewardship Initiative (SSI) together with other industry actors and organisations. Through the SSI, the sector is striving to establish the mechanisms to increase the traceability and sustainability of solar products, components and raw materials.

In 2023, Fortum participated in the Energy for a Just Transition’ collaboration to identify and address the impacts of a green energy transition on people and communities.

Sustainability indices and ratings

Fortum’s goal is to achieve excellent financial performance in strategically selected core areas through strong competence and responsible ways of operating. Fortum received a score of “B“ in the CDP Climate Change 2022 rating and “A-“ in the CDP Supplier Engagement rating. In 2023, Fortum received a rating of “A” (on a scale of AAA-CCC) in the MSCI ESG Ratings assessment. Fortum also participated in the ISS ESG Corporate Rating in 2023 and received a “Prime B-” rating. In 2023, Fortum was awarded Gold EcoVadis Medal. In 2022, Fortum was rated 62 points out of a maximum 100 points by Moody’s ESG Solutions. In addition, Fortum is listed on the Nasdaq Helsinki exchange and is included in the OMX Sustainability Finland and ECPI® indices. Fortum has been certified as a Nasdaq ESG Transparency Partner.

Sustainability risks

Fortum’s operations are exposed to risks, which, if materialised, can have adverse effects on the environment and on the safety and security of employees, contractors, and neighbouring societies. Key sustainability risks, including climate-related risks, are reported to Fortum Executive Management and the Audit and Risk Committee as part of the annual review of material risks and uncertainties for Fortum. Fortum’s risks are presented in the Risk management section in the Operating and Financial Review.

Climate change and the need for decarbonisation and resource efficiency are changing the energy industry in a profound way, and these changes also create new business opportunities for Fortum. As such, Fortum is well positioned to capture opportunities resulting from the energy transition, aimed at curbing climate change. The energy transition requires not only renewables but increasingly also energy storage and other flexible solutions to provide security of supply and to decarbonise industry, transportation, heating and cooling. Building on our strengths, our future will be driven by CO2-free power generation, sustainably transforming our own operations to become carbon neutral and engaging customers and society to decarbonise.

Sustainability governance and policies

Fortum Executive Management decides on the sustainability approach and Group-level sustainability targets that guide annual planning. The Group’s performance targets, including sustainability and climaterelated targets, are approved by Fortum’s Board of Directors. Fortum’s line management is responsible for the implementation of Fortum’s policies and instructions and for day-to-day sustainability management and improvement plans. 

Sustainability management at Fortum is strategy-driven and based on the company’s Values, Code of Conduct, Supplier Code of Conduct, sustainability-related policies, and other Group policies and their specifying instructions. The Code of Conduct establishes the basic principles of conduct that everyone must follow. The Code defines how we treat each other, do business, and engage with the world. The Supplier Code of Conduct, based on the ten principles of the UN Global Compact, outlines the requirements for Fortum’s suppliers and business partners. 

Fortum follows and respects the International Bill of Human Rights, the United Nations Convention on the Rights of the Child, and the core conventions of the International Labour Organisation (ILO). Fortum also recognises in its operations the UN Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises, the International Chamber of Commerce’s anti-bribery and anti-corruption guidelines, and the Bettercoal initiative’s Code on responsible coal mining. Fortum is a participant of the UN Global Compact initiative and the UN Caring for Climate initiative.

Business ethics

Zero tolerance for corruption and bribery is highlighted in Fortum’s Code of Conduct and Supplier Code of Conduct. In addition, separate instructions and guidelines have been created to address various topics, including but not limited to anti-bribery, compliance management, safeguarding company assets, conflict of interest, anti-money laundering, economic sanctions and competition law. Fortum’s Board of Directors has approved the company’s Code of Conduct and Supplier Code of Conduct. 

The Codes of Conduct are regularly reviewed in order to ensure compliance with evolving company and regulatory requirements. 

Internal and external reporting channels are offered for reporting suspicions of misconduct. The channels are described in the Code of Conduct and accessible on the company’s internal and external webpages. Suspected misconduct and measures related to ethical business practices and compliance with regulations are regularly monitored and assessed by Fortum’s Audit and Risk Committee. 

Fortum’s approach to taxation – our principles for respon­sible tax

One of the ways Fortum companies contribute to societies is by paying taxes in countries where we operate according to the local rules and regulations.

Fortum publishes Tax Footprint annually.

Sustainability reporting

Fortum’s sustainability reporting covers all functions under Fortum’s operational control, including subsidiaries in all countries of operation. Fortum’s TCFD (the Task Force on Climate-related Financial Disclosures) report is included in the Sustainability report. The non-financial reporting, in line with the Accounting Act, is included in the Operating and Financial Review.

Environmental friendly

Sustainability at Fortum

Read more on our sustainability site