Annual Report 2014 | Suomeksi |

Material aspects

The chosen material aspects of sustainability are based on the GRI G4 Guidelines and on Fortum’s own view and its stakeholders’ views on the significance of the impacts.

Identified
material aspect
Why the aspect is material Boundary within organisation on a divisional basis1) Boundary outside organisation. Stakeholders impacted by aspect. Geographical boundary of impact Reported indicators
Economic responsibility
Economic performance Competitiveness, security of supply and market‑driven production enable long‑term profitable growth. A financially strong company can shoulder responsibility for the environment, take care of its employees, monitor its supply chain, meet customer expectations, and produce excellent value to its shareholders. Whole organisation Upstream (suppliers, investors)
Downstream (customers, investors, public sector)
All reporting countries. Especially Finland, Sweden and Russia G4‑EC1
G4‑EC2
G4‑EC3
G4‑EC4
Plant decommissioning2) Producers of nuclear waste in Finland and Sweden are responsible for nuclear waste management and final disposal as well as the related costs. The legal obligation also applies to decommissioning nuclear power plants. NTP Downstream (communities)
Upstream (suppliers)
Finland and Sweden Aspect does not have indicators
System efficiency2) Better energy efficiency reduces the use of primary energy and the environmental impacts of energy production and use. We offer energy‑efficiency services also to customers. Until the end of 2014, Fortum had a Group‑level five‑year average target (>70%) for efficiency of fossil fuel‑based production. Whole organisation Downstream (communities, customers) All operating countries, except India where production is solar power EU11
EU12
Environmental responsibility
Materials We use large volumes of fuels in electricity and heat production. Own production
NTP
HESS
Russia
Upstream (suppliers) All operating countries, except India where production is solar power G4‑EN1
G4‑EN2
Energy We use large volumes of fuel and other energy sources, like hydropower, in electricity and heat production. Own production
Whole organisation
Upstream (suppliers) All operating countries, except India where production is solar power G4‑EN3
G4‑EN5
G4‑EN6
Water Water is an important global sustainability issue for stakeholders. Own production
NTP
HESS
Russia
Downstream (communities) All operating countries G4‑EN8
Biodiversity Hydropower production, electricity distribution and fuel procurement can have an impact on local biodiversity. Also fossil fuel‑based energy production may weaken local biodiversity particularly in Russia. Own production
NTP
HESS
Russia
Distribution
Upstream (suppliers) Finland, Sweden, Baltics, Russia G4‑EN13
EU13
Emissions Fuel combustion in electricity and heat production generates emissions into the air. Statutory limitations target emissions in our operating countries. Own production
NTP
HESS
Russia
Downstream (communities) All operating countries, except India where production is solar power G4‑EN15
G4‑EN16
G4‑EN17
G4‑EN18
G4‑EN21
Effluents and waste Power plants use huge volumes of water for cooling or as process water. The combustion of solid fuels generates significant amounts of ash and gypsum. Nuclear power production generates low‑, medium‑ and high‑level radioactive nuclear waste. Own production
NTP
HESS
Russia
Downstream (communities) All operating countries G4‑EN22
G4‑EN23
G4‑EN24
Compliance Compliance with legislation in all our operating countries forms the foundation of our social operating license. Own production
Whole organisation
Downstream (communities) All operating countries G4‑EN29
Supplier environmental assessment Environmental impacts from our supply chain are related mainly to fuels, particularly coal, uranium, and bioenergy. The possible environmental impacts related to the procurement of raw materials are included in the pre‑selection and audits of Fortum’s suppliers. NTP
HESS
Russia
Upstream (suppliers) International G4‑EN32
G4‑EN33
Environmental grievance mechanisms Our operations are guided by Fortum’s values, the Code of Conduct and the Supplier Code of Conduct. A grievance mechanism offers stakeholders a channel for reporting misconduct. Whole organisation Whole supply chain All operating countries, international G4‑EN34
Social responsibility
Sub‑category: Labour practices and decent work
Employment We are a significant employer in our operating countries. We aspire to be a desired employer that attracts and engages employees at all levels. Personnel
Whole organisation
Downstream (communities) All operating countries G4‑LA1
G4‑LA2
EU18
Labour/Management relations Collaboration between the employees and the employer is based on local legislation, agreements and Fortum’s Code of Conduct. Personnel
Whole organisation
Downstream (society,
trade unions)
All operating countries G4‑LA4
Occupational health and safety We strive to be a safe workplace for our employees as well as for contractors working for us and for service providers. Personnel
Whole organisation
Upstream (suppliers, contractors) All operating countries G4‑LA5
G4‑LA6
Training and education We aim to create interesting career and development opportunities to continuously advance personal professional skills and know‑how. It is important to us to secure the expertise required to implement the strategy. Personnel
HTP
NTP
HESS
Russia
All operating countries G4‑LA9
G4‑LA10
G4‑LA11
Diversity and equal opportunity We value diversity and we promote equal treatment and opportunities in recruiting, remuneration, personnel development and advancement, regardless of race, religion, political views, gender, age, nationality, language, sexual orientation, marital status, or disability. Personnel
Whole organisation
All operating countries G4‑LA12
Equal remuneration for women and men We want to offer our personnel a fair, transparent and competitive remuneration system. Personnel
Whole organisation
All operating countries G4‑LA13
Supplier assessment for labour practices About 50% of the goods and services we acquire originate from risk countries. Violations related to social issues are more likely to occur in these countries than in non‑risk countries. NTP
HESS
Russia
Upstream (suppliers) International G4‑LA14
G4‑LA15
Labour practices grievance mechanisms Our operations are guided by Fortum’s values, the Code of Conduct and the Supplier Code of Conduct. A grievance mechanism offers stakeholders a channel for reporting possible misconduct. Whole organisation Whole supply chain International G4‑LA16
Sub‑category: Human rights
Investment Fortum has operations in countries where the legislation and practices are not necessarily consistent with all internationally recognised human rights standards. NTP
HESS
Russia
Upstream (suppliers, contractors) Russia, India G4‑HR1
G4‑HR2
Non‑discrimination Fortum has operations in countries where the legislation and practices are not necessarily consistent with all internationally recognised human rights standards. Personnel
Whole organisation
All operating countries G4‑HR3
Freedom of association and collective bargaining Fortum has procurements from suppliers that operate in risk countries. With the exception of India, freedom of association and collective bargaining are protected by legislation in Fortum’s operating countries. Personnel
Whole organisation
Upstream (suppliers) International G4‑HR4
Child labour Fortum has procurements from suppliers that operate in risk countries. Of our operating countries, India has not ratified the International Labour Organisation’s (ILO) Convention on the minimum age and the worst forms of child labour. HPT
NTP
HESS
Russia
Upstream (suppliers) International G4‑HR5
Forced or compulsory labour Fortum has procurements from suppliers that operate in risk countries. Fortum has not identified risks related to the use of forced labour in Fortum’s own operations. HPT
NTP
HESS
Russia
Upstream (suppliers) International G4‑HR6
Assessment Alongside the current businesses, we are pursuing a platform for future growth by exploring and developing new sources of growth that support our strategic core areas. Human rights assessments are part of the assessment process for projects. Own production
HPT
NTP
HESS
Russia
Downstream (communities)
Business partners
International G4‑HR9
Supplier human rights assessment About 50% of the goods and services we acquire originate from risk countries. Violations related to social issues are more likely to occur in these countries than in non‑risk countries. NTP
HESS
Russia
Upstream (suppliers) International G4‑HR10
G4‑HR11
Human rights grievance mechanisms Our operations are guided by Fortum’s values, the Code of Conduct and the Supplier Code of Conduct. A grievance mechanism offers stakeholders a channel for reporting possible misconduct. Whole organisation Whole supply chain International G4‑HR12
Sub‑category: Society
Local communities Fortum’s future operations in India may require the acquiring of significant land areas and thus will impact local communities. Hydropower production has impacts on local communities. Own production
HPT
HESS
Downstream (communities) India, Finland, Sweden G4‑SO2
Anti‑corruption We have identified corruption and bribery as a significant business risk, and we absolutely reject corruption and bribery. Whole organisation Whole supply chain International G4‑SO3
G4‑SO4
G4‑SO5
Public policy The significance of energy issues will grow continuously in society, and we want to engage in an active dialogue to develop the sector. Whole organisation Downstream (communities) All operating countries G4‑SO6
Anti‑competitive behaviour Strict adherence to competition legislation is part of compliance in operations. Whole organisation Whole supply chain All operating countries G4‑SO7
Compliance Compliance with legislation in all our operating countries forms the foundation of our social operating license. Whole organisation Whole supply chain International G4‑SO8
Grievance mechanisms for impacts on society Our operations are guided by Fortum’s values, the Code of Conduct and the Supplier Code of Conduct. A grievance mechanism offers stakeholders a channel for reporting possible misconduct. Whole organisation Whole supply chain International G4‑SO11
Disaster/Emergency planning and response2) We produce energy at hydro, nuclear and CHP plants and we distribute electricity and heat. Exceptional situations may have significant impacts on society. The operational security of our operations is of utmost importance to us. Whole organisation Downstream (society, customers) All operating countries, except India This sector‑specific aspect doesn't have indicators
Sub‑category: Product responsibility
Product and service labelling Fortum complies with national legislation that is based on EU legislation regarding the origin of electricity. It requires that electricity producers report the origin of the produced electricity, the CO2 emissions, and the amount of radioactive waste. Customer satisfaction is a prerequisite for our business and we monitor it regularly. HESS
Russia
Distribution
Downstream (customers) All operating countries G4‑PR3
G4‑PR5
Marketing communications Fortum is a significant retailer of electricity and heat. Advertising and marketing communications is a key part of the electricity and heat retail business. HESS
Russia
Distribution
Downstream (customers) All operating countries, except India G4‑PR7
Access2) Electricity and heat security of supply is a prerequisite for a functioning society. Security of supply requires power plant operations to be as uninterrupted as possible. Whole organisation Downstream (communities, customers) All operating countries EU28
EU29
EU30
1) Divisions:
HPT: Hydro Power and Technology
NTP: Nuclear and Thermal Power
HESS: Heat, Electricity Sales and Solutions
Russia
Distribution
2) Sector‑specific aspect
X

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