Sustainability target setting
The Fortum Management Team decides on Fortum's sustainability approach and Group-level sustainability target setting, which guide annual planning. The targets are approved by Fortum's Board of Directors.
The divisions define detailed targets and develop action plans supporting the achievement of the targets, and they ensure that sustainability goals are included in the business goals. Group-level key sustainability indicators are reported quarterly. Safety and environmental incidents and indicators measuring the reliability of power distribution and the availability of CHP plants are reported monthly. The Fortum Management Team regularly monitors the achievement of the targets in its monthly meetings and in quarterly performance reviews. As of the beginning of 2013, results of the sustainability indicators have been regularly reported to Fortum's Board of Directors.
Sustainability targets are based on the continuous improvement of operations. The renewed targets, which came into force at the beginning of 2013, emphasise Fortum's role in society and measure not only environmental targets, but
also Fortum's reputation, customer satisfaction, and the security of supply of power and heat. As of the beginning of 2014, the target setting was adjusted by adding contractors' injury frequency to the corporate targets and expanding the CHP plant availability target to cover the whole Group (in 2013, Heat Division only).
Sustainability targets affect every Fortum employee and are part of Fortum's short-term incentive scheme. The 2013 incentive scheme included an index that was based on the One Fortum survey and measured Fortum's reputation among the general public and customers. The index approved by the Board of Directors for 2014 measures lost workday injury frequency for Fortum employees and contractors, the number of major EHS incidents and Fortum's ability to improve its performance in the Dow Jones Sustainability Assessment.
Sustainability targets affect every Fortum employee and are part of Fortum's short-term incentive scheme.