Fortum's sustainability approach, management model, roles and responsibilities together with target-setting are discussed in the report section Sustainability Approach. Fortum's governance model is discussed in the Governance Statement 2013.
Guiding policies and international commitments
The renewal of Group-level policies and instructions has been ongoing during 2012-2013. The renewed policies require the Board's approval. In June 2013, Fortum's Board of Directors approved Fortum Corporation's Sustainability Policy. Public policies will be available on Fortum's website after the Board's approval. Our main policies and instructions supporting sustainability include:
- Group manual on investment evaluation and approval procedure
- Group instructions on Competition Law
- Group instructions on anti-corruption and anti-bribery
- Group instructions for safeguarding Fortum's assets
- Group instructions for conflicts of interest
- Biodiversity guidelines
- Minimum requirements for EHS management
Fortum respects and supports the United Nations Universal Declaration of Human Rights, the United Nations Convention on the Rights of the Child, and the core conventions of the International Labour Organisation (ILO). Additionally, Fortum recognises in its operations the statutes of the OECD Guidelines for Multinational Enterprises, the International Chamber of Commerce's anti-bribery and anti-corruption guidelines, and the Bettercoal initiative's Code on responsible coal mining. Fortum has been a member of the UN Global
Compact initiative since June 2010 and joined the UN Caring for Climate initiative in November 2013.
Management approach to economic responsibility
Fortum's economic responsibility emphasises strong financial performance, profitable growth and added value over the long term. A company that is financially strong is able to be responsible for the environment, take care of its personnel, meet the needs of its customers, support the development of society and produce added value for its different stakeholders. Strong financial performance and growth must be achieved in compliance with sustainability principles and the company's target setting. Every new research and development project is assessed against carbon dioxide-free and resource efficiency criteria. Likewise, every new investment proposal is assessed against sustainability criteria
as part of Fortum's investment evaluation and approval procedure. In investments we are looking for economically viable options that enable a capacity increase and reduced emissions.
Fortum's key financial figures are prepared and presented in compliance with International Financial Reporting Standards (IFRS). Fortum uses the information presented in the financial statements as well as the applicable Global Reporting Initiative (GRI) indicators for reporting economic responsibility and discloses in its Sustainability Report some figures that are collected as part of the financial statement process, but are not included in the actual financial statements.
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Management approach to environmental responsibility
Environmental responsibility at Fortum emphasises the efficient use of natural resources and the need to mitigate climate change, and it highlights our know-how in CO2-free hydro and nuclear power production and in energy-efficient CHP production. Research and development activities create requisites for environmentally benign energy solutions.
Fortum's environmental management is based on the Group's policies and commitments as well as the international ISO 14001 standard; the goal is for all operative functions to have ISO 14001 environmental certification. During the year the Zabrze and Bytom operations in Poland and OAO Fortum's district heat network operations in Russia received ISO 14001 certification. At the end of 2013, the certification rate of Fortum's operations was 100%. The certification rate is based
on the share of sales generated in certified operations (2013 net sales values) out of Fortum's total sales.
Key environmental performance indicators include CO2 emissions per produced kWh, energy efficiency and the number of EHS incidents. EHS incidents are reported monthly and CO2 emissions and energy efficiency quarterly to the Fortum Management Team and regularly to the Board of Directors.
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Management approach to occupational health and safety
Fortum's safety management emphasises the company's
strategic intent to create a safe workplace for all individuals working in Fortum's operations. We believe that all work injuries are preventable. Safety management is based on the Group's policies and commitments as well as Group-level instructions and Group-defined minimum requirements for environmental and occupational health and safety work. Fortum's goal is for all operative functions to have OHSAS 18001, occupational health and safety certification.
At the end of 2013, the certification rate of Fortum's operations was 73%. During the year certification was awarded to Zabrze and Bytom operations in Poland and OAO Fortum's district heat network operations in Russia. The Electricity Solutions and Distribution (ESD) Division does not have OHSAS 18001 certification.
In reporting injuries, Fortum complies with the principles of the United States Occupational Safety & Health
Administration (OSHA) and the ILO's Practice on Recording and Notification of Occupational Accidents and Diseases (1995) to the extent that they conform to the legislation in Fortum's countries of operation.
A key occupational safety performance indicator includes lost workday incident frequency (LWIF) for own employees which is reported monthly to Fortum Management Team and regularly to the Board of Directors. Operative management receives a comprehensive safety report covering both own employees and contractors, monthly.
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Human resources and well-being management
Fortum aims to have engaged and satisfied employees. We want to create attractive career and development opportunities for individuals to continuously grow their professional skills and know-how. Fortum's Code of Conduct and HR policy guide HR practices, which are supported by Group-level HR processes: strategic planning, recruiting, personnel development, performance management, benefits and remuneration, and career and personal data management.
We value diversity and foster fair treatment and equal opportunity in recruitment, remuneration, development and advancement of employees, regardless of race, religion, political opinion, gender, age, national origin, language, sexual orientation, marital status and disability. The implementation
of the HR practices is monitored through employee surveys, annual performance and development reviews as well as other feedback channels.
The focus areas of Fortum's HR management in 2013 were coaching leadership, competence management and development aligned with the strategy, and development of Group-wide HR processes.
ForCARE is Fortum's well-being programme that comprehensively covers issues related to employee well-being. The programme's goals are to promote health and safety, support the employees' capacity to work throughout their career and promote the functionality of work communities at Fortum. Each member of the work community is responsible for their own well-being and competence and for the mutual development of well-being. The model is customised according to each country's legislation in
collaboration with local occupational safety organisations, the personnel and management.
Well-being is monitored through sick leaves, which is tracked quarterly and the ratio between actual retirement and the statutory start of the retirement age. Employee survey, which is conducted at two-year intervals also includes index measuring well-being.
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Fortum's approach to human rights is described in Fortum's Code of Conduct, Supplier Code of Conduct and Human Resources policy. Fortum endorses the UN Universal Declaration of Human Rights, the UN Convention of the Rights of the Child, and the key conventions of the International Labour Organisation. Additionally, Fortum recognises the statutes of the OECD Guidelines for Multinational Enterprises, the International Chamber of Commerce's anti-bribery and anti-corruption principles and rules, and the Bettercoal initiative's Code on responsible coal mining. Fortum has been a member of the United Nations Global Compact initiative since June 2010.
In 2013, Fortum included the UN Guiding Principles (Protect-Respect-Remedy Framework) on Business and Human Rights as part of its systematic country and partner risk assessment.
Supplier questionnaires and audit results assessing the realisation of human rights are recorded along with the corrective measures in the supplier database, which is available to all Fortum employees. Fortum has set a Group target for the number of audits and audits performed are reported quarterly to operative management.
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Fortum's Code of Conduct guides our management approach to society. Fortum follows good business practices and ethical principles in all of its operations. We compete fairly and ethically and work within the framework of applicable
competition laws and Group competition instructions. We avoid all situations where our own personal interests may conflict with the interests of the Fortum Group. Notably, we never accept or give a bribe or other improper payment for any reason.
We base our customer relations on honesty and trust. We treat our suppliers and subcontractors fairly and equally and we choose them based on merit; and with the expectation that they will consistently comply with our requirements and with Fortum's Supplier Code of Conduct.
As an active corporate citizen, Fortum offers expert advice to decision makers and non-governmental organisations in energy-related issues. Fortum as a company does not support, directly or indirectly, any political parties or other political organisations, nor does it participate in financing election campaign for any candidates.
Through our business, Fortum interacts with millions of people. According to our Sustainability Policy, we want to develop our operations in co-operation with our stakeholders. Open, honest and proactive communication and listening to our stakeholders are important in targeting our strategic aims. Special attention is paid to the local communities and people around our production plants.