Independent assurance report on Fortum’s sustainability reporting
To the Management of Fortum Corporation
We have performed a limited assurance engagement on the Fortum Oyj (hereafter: Fortum) sustainability reporting for the reporting period of January 1, 2013 to December 31, 2013. The information subject to the assurance engagement is the Finnish version of the sustainability reporting published in the website http://annualreport2013.fortum.com/.
Management is responsible for the preparation of the sustainability reporting in conformity with the Sustainability Reporting Guidelines (G3.1) of the Global Reporting Initiative and principles of inclusivity, materiality and responsiveness
as set out in the AA1000 AccountAbility Principles (AA1000APS). This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the sustainability reporting that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate criteria and making estimates that are reasonable in the circumstances. The scope of the 2013 Fortum sustainability reporting and the information included therein depends on the Fortum’s Corporate Sustainability priority areas as well as the reporting policies applied which are set out in reporting principles.
Our responsibility is to draw a limited (moderate) assurance conclusion on Fortum’s sustainability reporting based on our engagement. This assurance report has been prepared in
accordance with the terms of our engagement. We do not accept, or assume responsibility to anyone else, except to Fortum for our work, for this report, or for the conclusions we have reached. We conducted our engagement in accordance with International Assurance Standard ISAE3000. In addition, we have used the criteria in AA1000Assurance Standard (2008) to evaluate adherence AA1000APS (2008) for type 1 assurance engagement. This requires that we comply with ethical requirements and plan and perform the engagement to obtain limited assurance whether nothing has come to our attention that causes us to believe that Fortum’s sustainability reporting is not in all material aspects prepared in accordance with the reporting criteria.
We did not perform any assurance procedures on the prospective information, such as targets, expectations and ambitions, disclosed in the sustainability reporting. Consequently, we draw no conclusion on the prospective
A limited assurance engagement with respect to sustainability reporting involves performing procedures to obtain evidence about the information disclosed in the reporting. The procedures performed depend on the practitioner’s judgment, but their nature is different from, and their extent is substantially less than, a reasonable assurance engagement. It does not include detailed testing of source data or the operating effectiveness of processes and internal controls and consequently they do not enable us to obtain the assurance necessary to become aware of all significant matters that might be identified in a reasonable assurance engagement.
Our procedures on this engagement included:
- Assessing the suitability of the reporting policies used by
- management and the consistent application such policies, including assessing of the suitability of the reporting criteria, the inclusiveness of the responses on the stakeholder dialogue and the overall presentation in the sustainability reporting;
- Conducting interviews with senior management responsible for sustainability at Fortum to gain an understanding of Fortum’s targets for sustainability as part of the business strategy and operations;
- Inspecting internal and external documentation and verifying to what extent these documents and data support the information included in the sustainability reporting and evaluating whether the information presented in the sustainability reporting is in line with our overall knowledge of sustainability at Fortum;
- Conducting interviews with employees responsible for the collection and reporting of sustainability information and review of the processes and systems for data gathering,
- amongst others the aggregation of the data as included in the sustainability reporting;
- Performing analytical review procedures and testing data on a sample basis to assess the accuracy of the presented sustainability information;
- Site visits to selected sites in Finland and Russia to review compliance to reporting policies, to assess the reliability of the sustainability data reporting process as well as to test the data collected locally for sustainability reporting purposes and;
- Assessing the Company’s stated application level according to GRI’s guidelines.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.
Observations & Recommendations
Based on our limited assurance engagement, we provide the following recommendations in relation to the Accountability Principles AA1000APS (2008) and GRI G3.1 principles. The recommendations are to improve management and reporting of sustainability in future and do not affect our conclusions:
- Inclusivity – Fortum has a comprehensive stakeholder inclusiveness process in place and throughout this process Fortum has identified a broad range of relevant key stakeholder groups. We recommend that Fortum continues an open and regular dialogue with all relevant stakeholders and further strengthen its internal communication of issues raised by stakeholders to ensure they are appropriately considered across Fortum’s decision-making processes.
- Materiality – Fortum has a process in place to define
- what matters are important and material for Fortum´s stakeholders. We recommend that Fortum further develops the process to be more systematic to ensure that all material issues are acknowledged.
- Responsiveness – The report included a significant amount of issues and how Fortum has managed and responded to those issues. In 2013 Fortum has further developed balanced presentation in its reporting and reports more consistently on challenging aspects as well. We recommend Fortum to maintain balanced reporting on sustainability themes and continue to transparently discuss issues and events that have an impact on aspects, material to stakeholders, over the reporting period and in the future.
Our independence and competences in providing assurance to Fortum
We comply with independence and other ethical requirements, which are included in the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants IESBA (International Ethics Standards Board for Accountants).
This engagement was conducted by a multidisciplinary team including assurance and sustainability expertise with professional qualifications. Our team has many years of experience in providing sustainability reporting assurance.
On the basis of the procedures we have performed nothing has come to our attention that causes us to believe Fortum’s
sustainability reporting for the year from January 1, 2013 to December 31, 2013, is not prepared, in all material respects, in accordance with the Sustainability Reporting Guidelines (G3.1) of the Global Reporting Initiative and to the AA1000 AccountAbility Principles. The reporting fulfills the requirement of GRI G3.1 Application Level B+.
Deloitte & Touche Oy