Fortum as a responsible and sustainable investment

Sustainability is essential to Fortum’s businesses and in the core of our strategy. Our actions are guided by our ambitious sustainability targets as we continue to take steps towards net-zero emissions, that also benefit the climate, biodiversity, and our customers.

Our targets

SBTi-verified near- and long-term targets

Fortum commits to:

• Reach net-zero GHG emissions across the value chain by 2040.
• Reduce Scope 1 and 2 GHG emissions by 85% per MWh by 2030 and by 90% per MWh by 2040 from the 2023 base year.^*)
• Reduce Scope 1 and 3 GHG emissions from fuel- and energy-related activities covering all sold electricity by 69% per MWh by 2030 and by 94% per MWh by 2040 from a 2023 base year.^*)
• Reduce absolute Scope 3 GHG emissions from the use of sold products for sold fossil fuels by 55% by 2033 and by 90% by 2040 from the 2023 base year.
• Reduce absolute Scope 3 GHG emissions from fuel- and energy-related activities by 90% by 2040 from the 2023 base year.

^*) The SBTi target boundary includes land-related emissions and removals from bioenergy feedstocks.

Other climate targets

• Coal exit in our own operations by the end of 2027.
• Target for specific emissions at below 20g CO2/kWh for total energy production and at below 10g CO2/kWh for power generation by 2028.

Biodiversity

• 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.

Climate change

Fortum is committed to delivering its climate promise by taking concrete steps towards net-zero emissions. Fortum’s newly published near- and long-term science-based emissions reduction targets and science-based net-zero target by 2040 are validated by the international Science Based Targets initiative (SBTi).

Fortum’s ambitious commitment to SBTi targets is a significant milestone on Fortum’s sustainability journey, at the core of the company’s strategy and a vital part of its execution. In 2024, 99% of Fortum’s power generation derived from renewable or nuclear sources. In line with the sciencebased net-zero targets, Fortum will further reduce its greenhouse gas emissions from power and heat generation as well as sold electricity, gas and heat.

Fortum’s transition plan to net zero includes decarbonisation of its own operations and in the value chain. We prioritise direct emission reductions and all residual emissions will be neutralised in line with the SBTi criteria. Fortum is committed, for example, to exit all coal-based generation in the company’s own operations by the end of 2027. In the Espoo Clean Heat programme, the last coal-fired unit used for district heat production in Finland was closed down already in spring 2024. Fortum is also investing EUR 100 million in the decarbonisation of the Czestochowa combined heat and power (CHP) plant in Poland which is expected to be completed by the end of 2026. The Meri-Pori coal-fired power plant will be in national strategic reserve until the end of 2026 and would only run in situations of severe disruptions and emergencies. The reduction of emissions in the value chain includes increased sales of ‘Guarantees of Origin’ -certified electricity and changes in the energy mix of the product portfolio, such as increasing the share of biogas.

In 2024, Fortum’s total Scope 1, 2 and 3 market-based GHG emissions were 12.9 Mt CO2 -eq, a decrease of 1.2 Mt CO2 -eq (9%) compared to 2023. Scope 1 GHG emissions decreased by 0.28 Mt CO2 -eq mainly due to the reduction of coal use at the Meri-Pori power plant (0.1 Mt CO2 -eq) and the closure of the Suomenoja coal-fired CHP plant (0.08 Mt CO2 -eq). Scope 2 market-based GHG emissions decreased by 0.02 Mt CO2 -eq (45%) as a result of increased share of GoO-certified electricity purchased for own use. Regarding Scope 3, emissions from sold electricity decreased by 1.0 Mt CO2 -eq due to the increased sales of GoO-certified electricity, but increased gas sales volume in the Polish market increased emissions by 0.3 Mt CO2 -eq.

In addition to the SBTi targets, Fortum also has targets for specific emissions: for total energy (power and heat) production at below 20 gCO2/kWh and for power generation at below 10 gCO2/kWh by 2028. In 2024, Fortum’s specific emissions for total energy production were 26 gCO2/kWh and 11 gCO2/kWh for power generation.

Biodiversity

At Fortum, our main terrestrial biodiversity impacts are related to the impacts from GHG emissions, land use and fuel procurement. Fortum has an ambitious biodiversity target to have no net loss of biodiversity (excluding any aquatic impacts) from existing and new operations (Scope 1 and 2) from 2030 onwards. In addition, we will reduce our negative dynamic terrestrial impacts in upstream Scope 3 by 50% by 2030 (base-year 2021). By reducing our emissions, also our terrestrial biodiversity footprint will decrease. In addition, in 2024, we worked with our wind, solar and heat storage case studies to create a process to analyse our biodiversity footprint to reach our target of no net loss from 2030 onwards. A detailed Group-level biodiversity transition plan is currently being developed and is expected to be ready during 2025.

In 2024, Fortum started to apply new sustainable forest management guidelines in the company-owned forests. The purpose of the guidelines is to enable an overall increase in biodiversity values and concurrently safeguard the recreational and cultural values in forests.

Fortum is also committed to continue local initiatives and participate in the development of a science-based methodology to assess the aquatic impacts of hydropower to mitigate the impact of hydropower on aquatic biodiversity, Fortum is pioneering with partners to assess and set science-based aquatic biodiversity targets. In 2024, Fortum continued to carry out both voluntary and license-related hydropower biodiversity measures like habitat improvement measures, releases of young salmon and seatrout, and operation and restoration of fishways and bypass solutions to improve fish migration. In addition, Fortum, together with partners, has worked on developing a science-based methodology to assess the aquatic impacts of hydropower, e.g. through case studies. Similar actions are also planned in the future

Health & Safety 

For Fortum, excellence in safety is an absolute necessity for efficient and interruption-free operations. We strive to ensure a healthy and safe workplace, supporting the wellbeing of our employees and contractors. Our comprehensive safety management system covers all our operations and we believe all work incidents are preventable with proactive plans and measures.

As part of our safety and security management, we ensure sufficient resources to guarantee our preparedness to operate in all kinds of circumstances. With a risk-based approach, we have implemented crisis management procedures, continuity plans, and both physical and cyber protective measures. We practice regularly and execute development programs to enhance our security and preparedness.

Fortum's safety targets and 2024 outcome

People & wellbeing

Fortum’s goal regarding workplace wellbeing activities is to promote its employees’ health and occupational safety and the functionality of the work community. Fortum measures its employees' perceptions on health and wellbeing as well as Fortum's efforts to support them on mental, physical and social wellbeing through an employee survey carried out twice a year. Fortum’s November 2024 health and wellbeing score was 7.9 (excluding recycling and waste business employees), on par with the energy and utility sector peer benchmark.

In 2024, we made significant steps in our Diversity, Equity, and Inclusion (DEI) journey. The Fortum Leadership Team decided to adopt an ambitious DEI strategy, with the main focus to enhance the feeling of inclusion among all employees. We continued to increase awareness and provided trainings for over 1,000 Fortum employees. DEI-related questions are included in Fortum’s internal employee survey to evaluate the company’s current maturity on DEI. In 2024 the overall DEI score improved to 7.9 (+0,1), closer to the industry benchmark. We continue our ongoing DEI journey with systematic efforts.

Community involvement 

Fortum’s operations and investments benefit communities in multiple ways. We boost economic activity by employment and working together with wide contractor network, and generate income locally through land leases, property taxes and voluntary wind funds. Furthermore, we are in continuous dialogue with local communities and stakeholders.

Additionally, Fortum promotes the common good in society, together with organizations and communities through our Corporate Social Responsibility (CSR) Programme. In 2024, among other things, we helped clean the rivers near our hydropower plants in Sweden (an annual event with Städa Sverige), and supported Save the Children’s work improving children’s welfare in Finland, Sweden, Norway and Poland.

ESG ratings and recognitions

Fortum actively participates in the following ESG assessment schemes:

In addition, Fortum is listed on the Nasdaq Helsinki stock exchange and is included in the OMX Sustainability Finland and ECPI® indices. Fortum has been certified as a Nasdaq ESG Transparency Partner.

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. Link to Tax Footprint 2024 is below.

Sustainability reporting

Fortum Group’s Sustainability Statement for the financial year 2024 is a part of the Company’s Operating and Financial Review and it has been prepared in accordance with the European Union’s Corporate Sustainability Reporting Directive (CSRD) and with the related European Sustainability Reporting Standards (ESRSs). The CSRD has been implemented in Finland mainly into the Auditing Act, Accounting Act, the Companies Act, and the Trade Register Act. The Sustainability Statement includes EU Taxonomy disclosures, which are prepared in accordance with the EU Taxonomy Regulation and implementing delegated acts. Link to Financials 2024 (including Sustainability Statement) is below.