Sustainability at Fortum

Fortum’s vision is even more valid today– For a cleaner world

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Fortum generates value

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We promote the achievement of the UN’s Sustainable Development Goals (SDG)

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Our main contribution to the Sustainable Development Goals

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Our actions in 2018

Starting of an intelligent Solar2Go pilot

project in India with Futurice and Boond

Launch of the pre-engineering phase

for Fortum’s first CCS project in Oslo

Commissioning of new wind power in

Sweden, Norway and Russia

Installing the largest portfolio of rooftop

solar electricity systems in the Nordics

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Largest demand flexibility project in

the Nordics through intelligent heating

Establishing a joint venture to build a

biorefinery in India

Residential houses can control

household water heater remotely

EUR 56 million on research and

development

Our actions in 2018

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Clean Motion and Fortum accelerate

electrification of three-wheelers in India

First high-power charging stations for

EVs in Sweden, Norway and Finland

Fincumet purchase expands Fortum’s

metal recycling portfolioNOx emissions-reducing combustion

solutions to customers

Our actions in 2018

Fortum’s key sustainability topics

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Our sustainability targets and performance in 2018

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Target by 2020

Our sustainability targets for 2019

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Fortum’s Code of Conduct and Supplier Code of

Conduct define the ethical principles of our

operations

• The Code of Conduct online training was

updated in 2018 and more than 90% of

employees completed the training

The company's success requires an ethical approach

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Customer satisfaction at a good

level in most business areas

Electricity

retail

Smart

living

solutions

Smart

heating

EV

charging

Solar

panels

Virtual

power

plants

Insurances

Customer satisfaction as a goal

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Employees

• About 8,300 energy and circular economy

professionals

• 32% of the personnel are women

• Average age of permanent employees is

42.9 years

• 96% in permanent employment

• Employee turnover is 16%

• Sickness absence rate is 2.8%

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• The safety of our own personnel is at a good

level

• The goal is to improve the safety of our

contractors and to reduce accidents. In 2018

4 severe accidents including 2 fatalities.

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We want to be a safe workplace for employees and contractors

Our heat and power production by source

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Fortum's power generation in 2018 Fortum's heat production in 2018

Note: Fortum’s power generation capacity 13,724 MW and heat production capacity 15,009 MW

Total

production

29.8 TWh

Waste 7%

Heat pumps,

electricity 3%

Biomass 8%

Natural gas 64%

Coal 16%

Peat 1%Others 1%

Total

generation

74.6 TWh

Nuclear

power

30%

Natural gas 38%

Coal 3%Biomass 1%

Hydropower 26%

Wind 1%

Solar 0.5%Waste 0.5%

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We aim to reduce our impact on the environment

• 99,9% of our electricity and heat production is

environmentally certified according to

ISO 14001

• In 2018:

– We carried out environmental measures (e.g. fish

stocking, habitat restorations) valued at approx.

EUR 5.9 million for our hydropower

– We published our first Biodiversity Action Plan

– We made preparations for the Chain of Custody

certification of wood-based biomass purchases

• Our target is:

– 80% of all wood-based biomass fuel we use is

verified by a third party by the end of 2020

Our carbon exposure is among the lowest in Europe

g CO2/kWh electricity, 2017

57%96%

Fortum totalFortum in the EU

Share of CO2-free power in

Fortum’s generation in 2018

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Note:

All figures, except “Fortum total”, include only European power generation.

Source: PwC, December 2018, Climate Change and Electricity, Fortum

0

200

400

600

800

1 000

1 2 3 4 5 6 7 8 9

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Average 290

Fortum's specific emissions of the power generation in 2018 in the EU

were 26 g /kWh and in total 186 g/kWh

• We invest in renewable energy production:

solar, wind and hydropower

• 123 MW of new wind power in Russia,

Sweden and Norway in 2018

• Our investments in energy-efficiency

reduce emissions in relation to produced

energy

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We invest in CO2-free energy and energy efficiency

• We receive waste from customers in

Norway, Sweden, Finland and Denmark:

Service for customers and society

• The received waste is recycled, recovered

as energy or disposed

• We recycle also waste from our own power

plants

• In 2018, 98% of Inkoo power plant's

demolition waste was recovered

Fortum’s role in the circular economy

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• Energy availability of our power plants is at a

good level:

– The energy availability of our CHP plants at a

good level: 96.4%

– Hydropower availability: 98.5%

– The load factor of the Loviisa nuclear power

plant is among the highest in the world for this

type of plants: 88.4%

• We aim to keep district heating distribution

interruptions short

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Security of energy supply is important for the functioning of society

• We pay taxes in the country where the revenue is

generated

• We annually publish our Tax Footprint

Fortum is a responsible tax payer

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• Key tools in supply chain management are

country and counterparty risk assessments,

supplier qualification and supplier audits

– In 2018, we conducted 13 supplier audits in

seven countries.

– Fortum is a member of the Bettercoal initiative

and we use Bettercoal’s tools in assessing the

sustainability of our coal supply chain

– In 2018, two of Fortum’s coal suppliers’ mines

were assessed against the Bettercoal Code

• We assess the environmental, health and

safety impacts as well as social aspects of our

investments

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We manage the supply chain and investments responsibility

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Corporate citizenship includes support to non-profit activities

EUR

3.8

million

Fortum is listed in several sustainability indexes and ratings:

• CDP Climate Change

• FTSE4Good Index Series

• STOXX Global ESG Leaders

• ECPI®

• ISS-oekom Corporate Rating

• Euronext Vigeo Eurozone 120 and Euronext Vigeo Europe 120

• MSCI

• OMX Sustainability Finland Index

• Equileap Gender Equality

Fortum in sustainability indexes and ratings

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Sustainability reporting 2018

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Sustainability 2018 CEO’s Business Review 2018

https://fortum.com/Sustainability2018 https://fortum.com/CEO-Business-Review2018

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