Wärtsilä Corporation
Climate Impact & Sustainability Data (2004, 2005, 2023)
Reporting Period: 2004
Environmental Metrics
ESG Focus Areas
- Economic Performance
- Environmental Performance
- Social Performance
Environmental Achievements
- Improved energy efficiency and lower emissions of products
- Enviropax project achieved 10% higher efficiency in propulsion systems
- Reached the target of offering customers an environmentally advanced product portfolio by the end of 2003
- Successful completion of testing for the first fuel cell prototype
Social Achievements
- Approved internal Code of Conduct
- Job satisfaction study conducted in 2004
- Wärtsilä Brazil named one of the 100 best employers in Brazil
- Imatra Steel’s Steel Works won an award for the best work environment
Governance Achievements
- Not disclosed
Climate Goals & Targets
- Not disclosed
- Not disclosed
- To perform energy analyses and improvement programmes in all factories (by end of 2005)
- To perform a lifecycle assessment for one Ship Power application and one Power Plant (by end of 2005)
Environmental Challenges
- Unfavorable development of the power plant market
- Restructuring affected the working atmosphere
- Insufficient employee knowledge about Wärtsilä’s business strategy
- Rising fuel prices and stricter environmental requirements
Mitigation Strategies
- Continuous improvement program and restructuring
- Frank dialogue between management and employees
- More open and effective communication by management and supervisors
- Improving energy efficiency of products while simultaneously reducing emissions
- Development of alternative fuels and technologies (fuel cells, biofuels)
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Deepening partnerships with suppliers to ensure mutual understanding of requirements
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Development of energy-efficient products
Reporting Standards
Frameworks Used: GRI (Global Reporting Initiative) Sustainability Reporting Guidelines 2002
Certifications: ISO 14001 (in all Group companies)
Third-party Assurance: KPMG Oy Ab
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Fuel cell technology
- Enviropax vessel
- DF dual-fuel engines
- Enviro-Engine™
- IMAFORM™ steel
- M-steel
- IMATRA GreenCut™ steel
Awards & Recognition
- Wärtsilä Brazil named one of the 100 best employers in Brazil
- Imatra Steel’s Steel Works won an award for the best work environment
Reporting Period: 2005
Environmental Metrics
ESG Focus Areas
- Economic Performance
- Environmental Performance
- Social Performance
Environmental Achievements
- Breakthrough in DF engines as prime movers in LNG carriers, substantially reducing environmental impacts.
- Achieved a NOx emission level of 710 ppm in four-stroke engines.
- Completed first lifecycle assessments of its products, confirming the importance of engine operation and fuel refining on environmental impacts.
- Sales of gas-powered and biofuel-powered plants met targets.
Social Achievements
- Improved working conditions in China joint venture.
- Updated supplier requirements to conform to the Code of Conduct, adding social responsibility criteria.
- Acquired marine engine service businesses of DEUTZ AG and Gerhardt Holding Co. Inc.
Governance Achievements
- Updated the company’s Code of Conduct.
- Implemented a SAP-based ERP system worldwide to enhance and streamline processes.
Climate Goals & Targets
- Broader gas concept, e.g., 5 non-LNG carriers (2010)
- Fuel consumption improvement of diesel and gas engines by 3% compared to 2005 level (2010)
- 2000 MW diesel to gas conversions (2010)
- 50% of total seal sales to be environmental seals (2010)
- 500 MW scrubber retrofits (2010)
- Actively promote power plant technology based on renewable fuels with a target of 500 MWth of sold power plants (2010)
- Full release of NOx = 710 ppm engine concepts for power plant engines (2006)
Environmental Challenges
- Growing energy needs combined with increasingly strict environmental requirements.
- Increasing prices of fossil fuels due to declining reserves and global instability.
- New regulations related to sulphur content in fuel.
- Need to reduce emissions from ships to meet public concerns.
Mitigation Strategies
- Improving energy efficiency of products while simultaneously reducing emissions.
- Developing and introducing alternative fuels and technologies (e.g., gas, biofuels, fuel cells).
- Offering engine checks, modifications, and tank/system modifications for ships operating in SECAs.
- Developing new concepts for waste heat recovery, Delta Tuning, and LNG cruise ferries.
Supply Chain Management
Supplier Audits: 9
Responsible Procurement
- Updated supplier requirements to include social responsibility criteria.
Climate-Related Risks & Opportunities
Opportunities
- Development of energy-efficient products and alternative fuels.
Reporting Standards
Frameworks Used: GRI (Global Reporting Initiative) Sustainability Reporting Guidelines 2002
Certifications: ISO 14001 (in 32 Wärtsilä companies)
Third-party Assurance: KPMG Oy Ab
Sustainable Products & Innovation
- DF engines
- Multifuel engines
- Fuel cells
- Waste heat recovery systems
- Bio-oil fuelled power plants
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Decarbonisation
- Safety
- Wellbeing
- Diversity
Environmental Achievements
- Reduced CO2 emissions by 21,300 tCO2e compared to the previous year
- Developed the marine sector’s first commercially available 4-stroke engine-based solution for ammonia fuel
- Launched four additional methanol marine engines
- Achieved 47% of the final 2025 target for reducing energy consumption
Social Achievements
- Corporate lost-time injury frequency rate (LTIF) was 1.59, and the total recordable injury frequency rate (TRIF) 2.62
- Initiated a new four-year safety programme ‘Success through safety’
- Achieved 100% equal pay for males and females
- Code of Conduct training coverage was 93% of all employees
- Employee engagement index score of 80%
Governance Achievements
- 100% of the company’s employees had completed development discussions
- Share of female employees was 17.6%
Climate Goals & Targets
- Become carbon neutral in our own operations by 2030
- Reach the long-term goal of zero injuries
- Increase the share of females in the workforce to 20% by 2023
- Provide a product portfolio that will be ready for zero carbon fuels by 2030
- Reduce energy consumption by at least 7% from 2015 levels by 2025
- Achieve an employee engagement index above 80% by 2023
Environmental Challenges
- Understanding customer sustainability demand
- Climate change impacts
- Ethical business conduct
- Regulatory compliance
- Financing
Mitigation Strategies
- Development project on climate-related disclosures based on TCFD recommendations
- Annual sustainability risk assessments
- Code of Conduct training
- Supplier requirements for compliance with legislation, environmental aspects, quality, occupational health and safety management, social performance, and cyber security
Supply Chain Management
Responsible Procurement
- Mandatory supplier requirements for compliance with legislation, environmental aspects, quality, occupational health and safety management, social performance, and cyber security
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: TCFD
UN Sustainable Development Goals
- SDG 7
- SDG 9
- SDG 13
Energy solutions towards a 100% renewable future, thermal balancing and energy storage, energy efficiency and power system optimisation, decarbonisation services and modelling, future fuels research and development, sustainable innovations, R&D investments and partnerships, infrastructure projects, manufacturing employment, upgrades and retrofits, decarbonisation technology, solutions, and services, clean fuels research, power system modelling, partnerships and projects
Sustainable Products & Innovation
- Wärtsilä 25 Ammonia marine engine
- Four additional methanol marine engines
Awards & Recognition
- TIME’s 100 Most Influential Companies list