Sustainability governance
Our approach to sustainability governance is comprehensive. It entails how we work with businesses, integrate the relevant targets and actions into business plans, and follow-up. Fortum's governance structure ensures that sustainability is integrated into strategic development, performance targets, and reporting. The Board of Directors, through various committees, oversees strategic development, performance targets, sustainability reporting, and risk management. The Fortum Leadership Team sets sustainability objectives and monitors performance, with executive-level responsibilities assigned to the Chief Financial Officer and the Executive Vice President of Sustainability and Corporate Relations.
Fortum management incentives are linked to environmental, social, and governance (ESG) performance through both short-term incentives (safety) and long-term incentives (climate and reputation). Board members are not in an employment relationship with Fortum and, therefore, they are not able to participate in Fortum’s STI or LTI programmes.
Sustainability policies
Sustainability management at Fortum is based on the company's values, the Code of Conduct, the Supplier Code of Conduct, the Sustainability Policy and other policies and their specific instructions defined at the Group level. Needless to say, we comply with laws and regulations.
The Fortum Sustainability Policy is to be followed by all Fortum divisions and functions in all operating countries and by all external persons working for Fortum. The Policy is built on the Fortum Code of Conduct. The international initiatives, agreements and recommendations that Fortum follows and respects in the area of sustainability are disclosed at Fortum Code of Conduct.