Key sustainability management topics in 2013
In accordance with our sustainability policy, we continuously improve our operations by assessing our impacts and by considering sustainability in our whole business value chain.
During the year the development of sustainability management focused on three key areas:
- Systematic handling of sustainability-related issues at the Board level
- Assessment of the impacts of Fortum's activities on human rights
- Development of tools for country and partner risk assessment from sustainability perspective
In June 2013, Fortum's Board of Directors supplemented its working order with the approval of Fortum Corporation's Sustainability Policy, sustainability target setting and follow-up as well as review of Fortum's Sustainability Report. In the same meeting the Board approved Fortum's renewed Sustainability Policy. In December 2013, the Board approved the Group's sustainability targets for the year 2014 and the sustainability components included in both the short-term (STI) and long-term (LTI) incentive schemes.
Fortum has included the UN Guiding Principles (Protect-Respect-Remedy framework) on Business and Human Rights in its procurement processes and has implemented a raise a concern channel for misconduct reporting. In 2013, Fortum included the assessment based on those principles as part of a systematic country and partner risk assessment. During the year the most significant country assessed was India. In addition to country risk assessment, altogether around twenty potential partners were assessed.
Climate at the top of the agenda
Among the global sustainability challenges, climate change mitigation is one of the most relevant issues for Fortum. In 2013, Fortum actively promoted a market-based energy and climate policy regarding the future EU target setting, the emissions trading scheme and the functioning of the internal energy market.
In July, Fortum made a proposal to reform the ETS using a so-called automatic supply adjustement mechanism. The proposal was followed by an extensive dialogue with several governmental organisations and politicians in the EU and member states. During the year Fortum joined three international business initiatives promoting the role of business in climate change mitigation: Caring For Climate Initiative under the UN Global Compact, Single Target 2030 Initiative and twelve CEOs' Initiative for better energy policy.
In 2013, Fortum joined three international business initiatives promoting the role of business in climate change mitigation.
The long-term development of the operational sustainability performance based on continuous improvement continued. New topics investigated included Fortum's water balance, definition and mapping of environmental liabilities and extended auditing of social responsibility issues among contractors. A common procurement model and safety requirements for contractors were implemented during the year.