Annual Report 2014 | Suomeksi |

Report content

This year we are not publishing a separate sustainability report; we are reporting about sustainability as part of our Annual Report. We have reported the information required by the Global Reporting Initiative (GRI) G4 reporting guidelines and the Electric Utilities Sector Disclosures in different sections of the Annual Report (see the GRI index). We have reported the specific standard disclosures with indicators in the GRI section of the Annual Report. We will publish the Annual Report in its entirety online, in Finnish and in English, on our website at

The Annual Report describes our operations and the material sustainability aspects for us and for our stakeholders in 2014, and includes some information from January-February 2015 as well. The Sustainability Report for 2013 was published in March 2014. Fortum reports sustainability information annually; we will publish the next report in March 2016.

The individuals who can provide more information related to the Annual Report are listed on our Contacts page.

Report scope and boundaries

Reporting related to operations and management covers all functions under Fortum's control, including subsidiaries in all countries of operation. The consolidation includes the parent company Fortum Corporation and all the companies in which Fortum Corporation has the power to govern the financial and operating policies and in which it generally holds, directly or indirectly, more than 50% of the voting rights. Possible

deviations to this principle are reported in conjunction with information applying different boundaries. A list of the Fortum's subsidiaries is in Note 42 Subsidiaries by segment to the Financial Statements.

The most significant change in the report boundary compared to the 2013 report is related to the AB Fortum Värme samägt med Stockholms stad company (Fortum Värme). Application of the new IFRS standards has resulted in Fortum Värme being classified in the Financial Statements as a joint venture and it is consolidated with the equity method as of 1.1.2014. Until 2013, Fortum Värme was treated as a Group subsidiary in which non-controlling owners had a 50% share. As of 2014, joint venture Fortum Värme is not included in Fortum's sustainability targets or key indicators or in the descriptions of management practices. In this report, we present joint venture Fortum Värme separately in terms of material sustainability aspects and indicators.

Information from previous years is mainly presented as pro forma information, i.e. presented on the basis of the organisation and the functions of each year; the impacts of ownership changes in production facilities, for example, have not been updated afterwards in the previous indicators. An exception to this is joint venture Fortum Värme, whose share has been removed from 2013 information whenever possible. The corresponding removal has not been made in the information for 2012. Possible deviations from this rule are presented with the indicator.

Material aspects and defining the report content

Material sustainability aspects included in the report and the reporting boundaries are presented in table Standard disclosures / Material aspects. The selection of material aspects is based on GRI G4 reporting guidelines and on

Fortum's own and our stakeholders' views regarding the significance of the impacts. As the premise for the process, we used the aspects material to the sector as presented in the Implementation Manual and Electric Utilities Sector Disclosures document. Our understanding of stakeholder views is based on the result of the One Fortum survey, the stakeholder sustainability survey, and the EPSI customer satisfaction survey, as well as information gained through other stakeholder collaboration. Our own assessment of the significance of the impacts is based on the systematic monitoring and reporting of indicators for over 20 years.

Capacity changes

New and acquired capacity

In 2014, the Nyagan gas-fired power plant's third unit was commissioned in Russia. At the end of the year, we also commissioned the Kapeli solar power plant in India.

The plants and the capacities acquired during the year are included in the reporting starting from the moment of possession. The same applies to built new capacity and new plants commissioned during the year.

Divested capacity

Fortum divested its electricity distribution business in Finland on 24 March 2014, and both its electricity distribution business and heat business in Norway on 30 June 2014. These businesses are not included in the 2014 reporting.

Fortum divested its Grangemouth power plant in Great Britain on 1 October 2014. The plant data are included in the reporting until the end of September 2014.

Measurement and calculation principles

Data for economic performance indicators is collected

from the audited financial statements and from financial accounting and consolidation systems.

The environmental information of the report covers the plants for which Fortum is the legal holder of the environmental permit. In such cases, the plant information is reported in its entirety. The only exception is the calculation of specific CO2 emissions from Meri-Pori power plant, where the calculation covers only Fortum's share of production and emissions as specified in the operation agreement between Fortum and Teollisuuden Voima Oy. In the specific emissions calculation, the production shares of minority holdings are also included in the total production.

Fortum utilises a Group-wide database with instructions for collecting site-level environmental data. Sites are responsible for data input, emissions calculations and assurance. The Corporate Sustainability unit compiles all data and is responsible for disclosed sustainability information.

Fortum's CO2 emissions subject to the EU Emissions Trading Scheme are annually verified at the site-level by external verifiers. Direct and indirect greenhouse gas emissions have been reported in accordance with the Greenhouse Gas Protocol and based on the Greenhouse Gas Analysis performed by an external consultant.

Fortum's human resources (HR) management system is currently used in all Fortum’s operating countries and is the main system for employee-related personal and job data. In Russia, the employee data system covers mainly superiors. In addition, Russian operations have their own, local data system. Other social responsibility data, such as occupational health-related data, originates from various data systems and is collected by designated individuals and delivered to the Corporate Sustainability unit in the format recommended by GRI.

Global Compact reporting

Fortum has been a member of the United Nations Global Compact initiative since June 2010. This report describes the realisation of the Global Compact's ten principles in Fortum's operations. Global Compact approves the use of the indicators in the GRI Guidelines in Communication on Progress (COP) reporting. The GRI index presents the indicators used to measure Fortum's performance in fulfilling the principles of human rights, labour standards, the environment and anti-corruption.

Fortum joined the Caring for Climate initiative in November 2013. Fortum meets the reporting requirements of the Caring for Climate initiative by participating annually in the assessment in the CDP's climate change programme and by publishing its response on the CDP website.


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