Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change mitigation
• Circular economy
• Resource and energy efficiency
• Sustainable cities
• Occupational safety
• Employee wellbeing
• Ethical business operations

Environmental Achievements

• Total specific CO2 emissions from energy production were at 188 g/kWh, better than the target level of <200 g/kWh.
• Achieved energy savings of 1,372 GWh annually, compared to 2012, progressing towards the 2020 target of >1,400 GWh.
• 99.9% of Fortum’s power and heat production worldwide had ISO 14001 certification.

Social Achievements

• Launched the “Energise Your Day” wellbeing programme in Finland, with an almost 80% response rate.
• Average energy availability of Fortum’s CHP plants was 97.4%, above the target level of 95%.
• Total recordable injury frequency (TRIF) for Fortum employees was 1.9 per one million working hours, better than the target level of ≤2.5.

Governance Achievements

• Reorganised its operating structure to better enable strategy implementation.
• Updated its vision and mission to cover a broader scope, focusing on clean energy, customers, and shareholder value creation.
• Maintained unchanged long-term credit ratings from Standard & Poor’s (BBB+) and Fitch Ratings (BBB+).

Climate Goals & Targets

Environmental Challenges

• Increased commodity market volatility, especially low coal and oil prices.
• Pressure on electricity prices due to high Nordic water reservoirs.
• Uncertainty created by the British EU exit vote.
• Weak industry power demand and volatile commodity prices.
• Regulatory and fiscal environment risks in the energy sector.

Mitigation Strategies

• Adjusted operational model to better enable strategy implementation.
• Screened opportunities in line with strategy (acquisitions of DUON, Ekokem, wind power investments).
• Divested the Tobolsk power plant in Russia to optimize production fleet.
• Renewed strategy to broaden revenue base and diversify into new businesses, technologies, and markets.
• Active dialogue with bodies involved in the development of laws and regulations.

Supply Chain Management

Supplier Audits: 13 suppliers audited in 2016

Responsible Procurement

• Fortum Code of Conduct
• Fortum Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Hydrological conditions
• Extreme weather

Transition Risks

• Changes in energy policy and regulation
• Changes in technology

Opportunities

• Growth in solar and wind power
• Development of energy-efficient products
• Circular economy solutions

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001, OHSAS 18001

Sustainable Products & Innovation

• Circular economy solutions
• Solar and wind power investments

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Efficiency
• Circular Economy

Environmental Achievements

• Specific CO2 emissions from total energy production were 184 gCO2/kWh in 2017, below the target of 200 gCO2/kWh.
• Annual cumulative energy savings achieved 1,502 GWh, exceeding the target by 100 GWh.
• 96% of Fortum's electricity production in the EU area was CO2-free in 2017.
• Material recovery rate of own waste increased to 45% in 2017 from 37% in 2016.

Social Achievements

• Launched the “Culture of the new generation: energy saving and efficiency” project in Russia, reaching over 1,500 school children.
• 76% of Fortum's spend came from qualified suppliers in 2017.

Governance Achievements

• Board-level oversight of climate-related issues.
• Incentives for management of climate-related issues, including emissions reduction targets.

Climate Goals & Targets

Environmental Challenges

• Uncertainty of the regulatory regime and CO2 allowance pricing.
• Russia’s uncertain legislative and political operating environment related to climate change.
• Physical risks from rising mean temperatures affecting cooling water temperature for power plants.

Mitigation Strategies

• Active involvement in climate policy discussion and development, promoting market-driven energy and climate policy.
• Investing in renewable and CO2-free wind and solar power production capacity in Russia.
• Adapting operations to the changing climate, considering climate change in production planning and investment projects.
• Continuously ongoing investments at Loviisa nuclear power plant to enhance safety.

Supply Chain Management

Supplier Audits: 25 in 2017

Responsible Procurement

• Supplier qualification process

Climate-Related Risks & Opportunities

Physical Risks

• Rising mean temperatures affecting cooling water temperature for power plants

Transition Risks

• Uncertainty of the regulatory regime and CO2 allowance pricing
• Russia’s uncertain legislative and political operating environment related to climate change

Opportunities

• Improving energy efficiency at power plants
• Developing infrastructure for electric cars
• Investing in hydropower

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol

Sustainable Products & Innovation

• Electric vehicle charging systems
• Solar panel solutions
• CO2-free electricity products and carbon-neutral heat products

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Environmental Impacts
• Water Use
• Energy Efficiency
• Circular Economy

Environmental Achievements

• 64% of Fortum's power generation was CO2-free in Europe in 2021
• 40% of Fortum's total power generation was CO2-free globally in 2021
• Combined energy savings of 179 GWh/a from energy-efficiency improvement projects in 2021 (excluding Uniper)

Social Achievements

• Not disclosed

Governance Achievements

• Implemented Task Force on Climate-related Financial Disclosures (TCFD) reporting process
• Board-level oversight of climate-related issues
• Executive compensation linked to ESG targets (e.g., coal phase-out, CO2 emission reduction)

Climate Goals & Targets

Environmental Challenges

• Changes in carbon pricing mechanisms
• Mandates on future energy production (e.g., hydrogen regulation)
• Changing temperature affecting production capacity

Mitigation Strategies

• Closely monitoring and advocating for strong carbon pricing policy
• Active involvement in EU policy discussions on hydrogen regulation
• Adapting operations to changing climate, considering climate change in production and maintenance planning and investment projects

Supply Chain Management

Supplier Audits: 4 in 2021

Responsible Procurement

• Supplier Code of Conduct
• Supplier qualification process and audits
• Bettercoal initiative for coal suppliers
• Certification for biomass from sustainably managed forests

Climate-Related Risks & Opportunities

Physical Risks

• Changes in weather patterns affecting energy demand and hydropower production
• Flooding affecting dam safety
• Extreme heat and dry spells affecting operations
• Rising mean temperatures affecting cooling water capacity and production at power plants

Transition Risks

• Changes in carbon pricing
• Changes in energy and climate policy and regulation
• Technology development
• Changes in stakeholder perception

Opportunities

• Increased value of fixed assets due to low-emission sources of energy
• Increased revenues from increased demand for low-carbon products and services
• Returns on investment in low-emission technology

Reporting Standards

Frameworks Used: GHG Protocol, TCFD

Certifications: Null

Third-party Assurance: Independent limited assurance

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• CO2-free electricity
• Recycled plastic (Fortum Circo)
• Digital EV charging solutions

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Environmental Impacts
• Water Use
• Energy Efficiency
• Circular Economy

Environmental Achievements

• 97% of Fortum's power generation in Europe was CO2-free.
• 59% of Fortum's total power generation globally was CO2-free.
• Reduced Scope 1+2+3 greenhouse gas emissions to 30.2 million tonnes of CO2-eq, compared to 33.0 million tonnes CO2-eq in the base year.

Social Achievements

• Not disclosed

Governance Achievements

• Board-level oversight of climate-related issues.
• Implemented Task Force on Climate-related Financial Disclosures (TCFD) reporting process.
• Executive compensation linked to ESG targets (emission reduction).

Climate Goals & Targets

Environmental Challenges

• Overlapping national carbon policies diluting the effectiveness of the EU ETS and leading to lower power prices.
• Risk of increasing activity by non-governmental organizations (NGOs) negatively impacting reputation.
• Potential for recurring windfall taxes on high energy prices.
• Chronic physical risks from changing temperatures affecting power generation capacity.
• Uncertainty of the regulatory regime and CO2 allowance pricing impacting investment decisions.

Mitigation Strategies

• Advocating for an ambitious carbon pricing mechanism in the EU.
• Lobbying against windfall taxes.
• Investing in back-up systems for loss of seawater cooling at nuclear power plants.
• Diversification of coal procurement sources.
• Improving Chain of Custody management system for wood-based fuel.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct requiring consideration of climate impact and emission reduction.
• Use of Bettercoal tools to assess coal supplier performance.
• Preference given to coal from Bettercoal producers and certified wood-based biomass.

Climate-Related Risks & Opportunities

Physical Risks

• Changes in weather patterns altering energy demand and hydropower production volumes.
• Higher precipitation and flooding affecting dam safety.
• Extreme heat and dry spells leading to forest fires.
• Fluctuating precipitation, flooding, and extreme temperatures affecting hydropower production and biomass fuel availability.
• Rising mean temperature affecting power generation due to cooling water limitations.

Transition Risks

• Changes in carbon pricing mechanisms leading to lower electricity prices.
• Emerging regulation such as windfall taxes.
• Changes in energy and climate policy and regulation.
• Technology development and cost of technologies.

Opportunities

• Increased electricity demand due to electrification and clean hydrogen.
• Growth in clean power generation.
• Increased value of firm and dispatchable clean generation due to volatility in renewable energy sources.
• Opportunities in clean hydrogen and new nuclear.

Reporting Standards

Frameworks Used: TCFD, GHG Protocol, EU Taxonomy

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through clean energy production, emission reduction, and sustainable development.

Sustainable Products & Innovation

• Fortum Circo® recycled plastic
• Clean hydrogen
• Digital EV charging solutions

Awards & Recognition

• Not disclosed