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Sustainability report highlights

Sustainability is at the core of Fortum’s strategy. Fortum is the third-largest producer of carbon dioxide-free electricity in Europe and a significant gas company. In our operations, we give balanced consideration to climate and resource issues and our impacts on personnel and society.

Sustainability report 2021

Sustainability Highlights 2021

  • New reduction target for Scope 3 greenhouse gas emissions; 35% by 2035 at the latest (compared to base-year 2021)
  • Biodiversity target achieved; Fortum conducted 13 major voluntary measures that improve the living conditions of species and strengthen populations
  • Fortum published its first Climate Lobbying Review; Fortum wants to be a forerunner in driving greater corporate transparency and accountability relating to climate change advocacy
  • The safety of own personnel and contractors remains Fortum’s top priority; in 2021 we launched the Safety Ground Rules to support the improvement of Fortum’s safety performance
  • Fortum was ranked 22nd overall and the best of the Finnish companies in the European Women on Boards Gender Diversity Index 2021

Transform our own operations to carbon neutral

Planned coal exit for European capacity

In 2021, Fortum continued to implement its strategy to drive the clean energy transition forward. Fortum’s strategic priority is to transform our own operations to carbon-neutral. We have committed to the carbon neutral (Scope 1, 2 and 3 emissions) target globally, in line with the goals of the Paris Agreement, by 2050 at the latest. In addition, we have the following ambitious climate targets:

  • Reduction of CO2 emissions (Scope 1 and 2) in European generation by at least 50% by 2030 (compared to base-year 2019)
  • Carbon neutral (Scope 1 and 2) in European generation by 2035 at the latest
  • Scope 3 greenhouse gas emissions reduction by 35% by 2035 at the latest (compared to base-year 2021)
Scope1-3 picture with texts

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Three women smiling in their business wear

Diverse corporate culture

Aiming for a corporate culture in which future employees from different backgrounds thrive, develop, and always give their best.

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Three employees discussing at a powerplant

Good cooperation

Fortum and Uniper cooperate in nuclear decommissioning and dismantling services.

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green nature

Sustainability collaboration in exceptional circumstances

2021 was the first full year with Uniper consolidated as a subsidiary of Fortum. I find it important to reflect on the exceptional year and sustainability collaboration between Fortum and Uniper. Together, we reassessed the sustainability priorities of both companies by utilising the same methods.

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Frequently asked questions

What are the key topics on Fortum’s sustainability agenda?

The exceptional conditions caused by the Covid-19 pandemic continued in 2021, and Fortum’s top priorities were to ensure the health and safety of its employees and contractors and to maintain business continuity. These goals were well achieved.

We continue to implement our strategy to drive the clean energy transition forward and our coal-exit is proceeding well. Fortum’s strategic priority is to transform our own operations to carbon neutral. We have committed to the carbon neutral (Scope 1, 2 and 3) target globally, in line with the goals of the Paris Agreement, by 2050, and in our European generation (Scope 1 and 2) by 2035.

In addition to the climate targets, Fortum had a biodiversity target for 2021, which was achieved by conducting 13 major voluntary measures that improve the living conditions of species and strengthen populations. During 2022, our target is to develop a science-based strategy to measure and enhance the biodiversity impacts of the Group’s operations and new developments.

The safety of own personnel and contractors remains Fortum’s top priority, and in 2021 we launched the Safety Ground Rules to support the improvement of Fortum’s safety performance. Together with Uniper, we also initiated the alignment of several key safety processes.

We are devastated and saddened by Russia’s attack on Ukraine. Both Fortum and Uniper have communicated about business decisions made due to the geopolitical situation. The current developments have added a new variable to the equation of sustainability, affordability, and security of supply of power, which is independence. This is something we will have to consider across Europe as we move forward with the energy transition.

Why have Fortum’s carbon dioxide emissions increased in 2021?

After the drop in 2020, energy consumption in our market areas increased in 2021 as economies recovered and societies learned to cope with the Covid-19 pandemic. For securing the electricity supply, authorities ordered that reserve coal power be taken into use in Germany. This together with the recovered economy and increased fossil-based power generation in Europe and Russia resulted in an increase in our direct Scope 1 emissions.

However, our climate targets remain. Our target is to be carbon neutral in our European generation already in 2035 and in our operations globally in 2050 at the latest, in line with the goals of the Paris Agreement. We also developed a new target for the reduction of indirect Scope 3 greenhouse gas (GHG) emissions, which play a significant role in our total greenhouse gas emissions

Our coal-exit is proceeding well and within less than one year, we have been able to announce accelerated coal phase-out of six of our coal-fired power plants in Germany and the UK compared to the original timetable. By 2030, Fortum will phaseout or exit about 8 GW of coal-fired power generation. We will also strengthen and grow in CO2-free power generation. Our target is to build 1.5–2 GW of new renewable energy capacity by 2025.

Our climate targets

  • Reduction of CO2 emissions (Scope 1 and 2) in European generation by at least 50% by 2030 (compared to base-year 2019)
  • Carbon neutral (Scope 1 and 2) in European generation by 2035 at the latest
  • Carbon neutral globally (Scope 1, 2 and 3 emissions), in line with the goals of the Paris Agreement, by 2050 at the latest
  • Reduction of Scope 3 GHG emissions by 35% by 2035 at the at the latest (compared to base-year 2021)
Will Fortum and Uniper stop imports of gas, coal and nuclear fuel from Russia?

In Finland, we will not buy coal, pellets or biomass for our power plants in Espoo and Meri-Pori from Russia for the time-being. For our Loviisa nuclear power plant in Finland, we currently procure fuel from the Russian fuel company TVEL. The current contract is valid until the end of our current operating licenses, i.e. until 2027 and 2030. Currently the plant has nuclear fuel in storage for up to two years. There are also alternative suppliers in the market that can cater for Loviisa.

In Germany, Uniper has announced that it will not enter into new long-term supply contracts for natural gas with Russia. The longest duration of Russian gas LTCs run beyond 2030. Gas imports from Russia and Uniper’s LTCs cannot be easily replaced and Uniper is working to diversify its gas imports, moving into clean gases overtime. In the short term, Uniper is increasing LNG imports to Europe and has re-started the LNG terminal project in Wilhelmshaven. Uniper is also looking for alternatives to Russian coal and has decided not to extend its Russian coal supply contracts which run out at the end of 2022.

What has been Fortum’s Covid-19 response?

Measures conducted by the occupational healthcare services have helped to ensure that there have been no closures of facilities due to Covid-19, thus guaranteeing a safe working environment for our employees. There have not been pandemic-related interruptions in our energy production or challenges in maintaining operational safety.

In 2021, Fortum’s occupational healthcare services was one of the largest private provider of employee Covid-19 vaccinations among non-health care companies in Finland. Uniper was able to offer all employees in Germany the opportunity to be vaccinated.

We continued to focus on supporting both the physical and mental wellbeing of people in these exceptional conditions. Special emphasis was put on supporting the teams and managers in remote and virtual working.

What is your hybrid work approach? How are Fortum people doing?

Fortum, excluding Uniper, continued Workforce 2.0, a strategic initiative to analyse what structural long-term changes we need to implement in our ways of working. The initiative collaborated to some extent with Uniper’s equivalent initiative called NeNo – New Normal.

We designed Fortum’s hybrid work principles in which we recommend our workforce to work and collaborate at least two days in the office and the rest of the workweek based on the team’s decision and preferences. Flexibility is the key in the model, and we believe in collaboration and physical meetings.

More than two thousand employees, excluding Uniper, conducted the holistic wellbeing assessment. The survey gives a wide overview of the wellbeing status at the individual level but it’s also a tool for developing the wellbeing at the different levels of the organisation. The results of this survey were strong in the areas of life enjoyment, work performance, core wellbeing at work; e.g., 76% of the respondents feel that the work they do is meaningful to them and 86% feel they can influence their work.

What is the role of diversity and inclusion in Fortum?

Diversity and inclusion are key to our long-term success as a company in all our markets. The diversity, equity, and inclusion (DEI) survey conducted by Boston Consulting Group and United Nations Women showed that 93% of Fortum respondents see DEI as critical for future competitiveness, 84% report that our culture is inclusive and 56% believe that Fortum has a clear diversity and inclusion strategy and objectives.

The survey results show that we have improvement areas. However, we have also made progress. Fortum was the best among the Finnish listed companies in the European Women on Boards (EWoB) Gender Diversity Index, ranking at 22/668. Fortum also had the biggest improvement in gender diversity in top management positions among the Finnish companies. Of all executive positions at Fortum, 44% are currently held by women, while 57% of the members of the Board of Directors and 33% of the members of the Management Team are women.

Year 2021 in short

Fortum achieved its 2021 biodiversity target of conducting a minimum of 12 major voluntary measures that improve the living conditions of species and strengthen populations. Adding to our existing climate targets, Fortum set a new target to reduce Scope 3 greenhouse gas emissions by 35% by 2035 at the latest (compared to base-year 2021).

The exceptional conditions caused by the Covid-19 pandemic continued in 2021, and the safety of own personnel and contractors remained Fortum’s top priority. Employee wellbeing programmes highlighted topics related to mental energy, resilience, and physical health. Fortum also launched the Safety Ground Rules to support the improvement of Fortum’s safety performance.

Sustainability report

Learn more about our sustainability performance in 2021

Sustainability report

Our Annual Reporting 2021