A CLEANER TOMORROW ’S YEAR CONTENTS

CEO’s review ...... 4 Gasum in brief and key figures ...... 6 Organization and business units ...... 8 Highlights in 2016...... 10

Developing a smart gas system LNG infrastructure ...... 14 LNG for maritime transport ...... 16 LNG for industry ...... 17 Solutions for land transport...... 18

Competitive gas enabling innovation Biogas for a cleaner tomorrow ...... 24 Supply-secure and flexible natural gas ...... 26

Promoting sustainability and creating a new Gasum Our corporate responsibility program ...... 28 Future becomes a reality through action ...... 30 Clean gas solutions supporting energy and climate policy ...... 32 New ways to improve occupational health and safety ...... 34 Key role played by personnel competence ...... 36 Gasum Management Team (GMT) and The Board of Directors ...... 40 NORDIC GAS ECOSYSTEM AND A CLEANER TOMORROW

Gasum is a Finnish expert in the gas sector that is building a gas ecosystem for natural gas, local biogas and liquefied natural gas (LNG) in the Nordic countries. The starting point for everything is a cleaner tomorrow in the achievement of which gas plays a key role. Natural gas alone can help achieve a 40% cut in greenhouse gas emissions from energy production, industry and transport, and emissions can be reduced even further through the increased use of local biogas. We are promoting a sustainable energy future through new innovations and circular energy solutions.

In 2016 we took major steps purposefully towards a cleaner tomorrow. In this Annual Report we outline how we did that. CEO’S REVIEW

Clear steps have been taken in the development of the Nordic gas ecosystem based on local biogas, liquefied natural gas and energy-efficient pipeline natural gas.

4 A CLEANER TOMORROW CEO’S REVIEW

STEP BY STEP TOWARDS A CLEANER TOMORROW

e took purposeful measures to advance Natural gas still plays an important role in the transi- our strategy in 2016. Clear steps have tion towards a carbon-neutral society. The position of been taken in the development of the gas is also recognized in ’s newly-adopted Na- W Nordic gas ecosystem based on local tional Energy and Climate Strategy that provides steer- bio gas, liquefied natural gas and energy-efficient pipe- ing towards ambitious energy and climate targets. line natural gas. In 2016 natural gas consumption in Finland totaled around 24 TWh. Gas has maintained a significant posi- The biogas market has developed rapidly during tion in Finnish energy use: viewing the nation’s energy the past year. Biogas has become a more common production as a whole, the annual consumption of na- choice as a clean alternative for transport, heating and tural gas corresponds roughly to the amount of energy industry. Thanks to our biogas plant network that was generated by four nuclear power stations. expanded nationwide, we are now Nordic countries’ Energy-efficient gas will continue to be a key com- leading processer of biodegradable waste and sup- ponent in the Finnish energy palette. We are proud to plier of biogas. be able to offer our customers the most competitive Several circular economy innovations developed by gas pricing in Europe. us through partnerships have emerged from biogas. Ke- sko retail outlets’ food waste not suitable for human con- In 2017 our strategy will be advanced with even sumption is recycled into renewable biogas that is then greater determination. We concluded an acquisition used to make new Kesko own-brand Pirkka products. of biogas plant companies in Sweden in December. Our partnership with the startup company Soilfood We are expanding our operations into the Swedish bi- provides great benefits for Finnish food farming: Soil- ogas market while at the same time being able to offer food processes nutrient residues from biogas produc- our customers even more comprehensive renewable tion into environmentally friendly targeted fertilizers gas solutions in the Nordic countries. for farmers. Our operations are also growing into in Finland: cus- tomers in new regions such as Northern Ostrobothnia Liquefied natural gas (LNG) brought a valuable addi- will be able to utilize more clean biogas once the ex- tion to the Finnish energy market when Finland’s first pansion of the biogas plant is completed in 2017. LNG import terminal was opened in in autumn The Northern-Finnish energy infrastructure will also be 2016. Our Nordic position was strengthened further diversified by the LNG terminal due to be oper- during the year when ownership of the Risavika LNG ational at the beginning of 2018. production plant in Norway was transferred to the Gasum subsidiary Skangas. With the gas ecosystem expanding, the number of The use of LNG does not result in any sulfur dioxide Gasum employees has increased at a fast pace. Our emissions at all and meets all of the stricter emission family at Gasum has gained lots of new competent limits set by the International Maritime Organization members. I am proud of your commitment and your (IMO). The rise of clean shipping can also be seen in outstanding contribution to the creation of a sustain- the Gulf of Finland: Tallink’s new LNG-fueled fast ferry, able energy future. Megastar, started to operate on the -Tallinn I would like to express my warmest thanks to all of route in January 2017. our customers and employees for our rewarding co- Helping replace petroleum-based fuels, LNG also operation. I look forward to our steps together towards offers a new alternative for emission reductions in in- a cleaner tomorrow. dustry and heavy-duty road transport. The first filling stations for heavy-duty road vehicles are already used by our customers in Helsinki and . In 2017 the Johanna Lamminen network will increase by another two stations. CEO

GASUM’S YEAR 2016 5 KEY FIGURES GASUM IN 2016

Growth in biogas and liquefied natural gas (LNG) consumption continued in 2016. Natural gas plays an important role in the transition towards a carbon-neutral society. In line with the Gasum strategy, we continued to work purposefully for sustainable development: major investments were made in biogas and LNG, the gas filling station network was expanded, and Gasum joined the Society’s Commitment to Sustainable Development and the new Energy Efficiency Agreement for Industries. There was also a strong focus on digitalization to make our company even more efficient and environmentally friendly. The year 2016 was also important for our human resources strategy: there was a major increase in the number of Gasum employees due to our biogas business growth.

REVENUE (€ MILLION) OPERATING PROFIT (%) RETURN ON EQUITY (%)

1,500 20 20

1,200 16 15

900 12 10

600 8 5

300 4 0

0 0 -5 2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016

6 A CLEANER TOMORROW KEY FIGURES

KEY FIGURES 2016 2015 23.8 5.8 REVENUE €843 €915 TWh TWh million million SALES OF SALES OF LNG NATURAL GAS BUSINESS OPERATING PROFIT BUSINESS (2015: 5.7) (2015: 25.9) €125 €126 million million

BALANCE SHEET TOTAL €1,462 €1,426 million million

CAPITAL EXPENDITURE 233.9 261,000 ON FIXED ASSETS GWh tonnes €51.3 €45.6 SALES OF AMOUNT OF million million BIOGAS BIODEGRADABLE BUSINESS WASTE PROCESSED EQUITY RATIO (2015: 179.3) IN FINLAND 40.8 39.4 per cent per cent

RETURN ON EQUITY

17.7% 19.8% 19 2 EMPLOYEES GAS FILLING GAS FILLING STATIONS STATIONS FOR HEAVY-DUTY 375 310 VEHICLES

GASUM’S YEAR 2016 7 ORGANIZATION AND BUSINESS UNITS

BUSINESS FUNCTIONS GUIDED BY STRATEGY CLEANER TOMORROW THROUGH EFFICIENT GAS SOLUTIONS

asum is a forerunner in sustainable Nordic affect everything we do from customer work and invest- energy solutions and circular economy. Our ments to advocacy and responsibility development. updated strategy responds to the opportu- 1. We promote sustainability Gnities and changes in the operating environ- 2. We sell competitive gas ment shaping the entire energy sector and aims towards 3. We develop a smart gas system a cleaner tomorrow through the expansion of the gas 4. We build a new Gasum market. Gasum’s mission is ”Cleaner energy” and our vision BUSINESS BASED SOLIDLY ON is ”Leading the Nordic gas ecosystem”. As stated in our FOUR CORNERSTONES value proposition, we are purposefully and responsibly Gasum’s business units are Natural Gas, Biogas, LNG, and moving towards new opportunities. Technical Services. We import natural gas to Finland for the needs of en- GAS IS PART OF ergy production, industry, land and maritime transport, SUSTAINABLE DEVELOPMENT and homes. We produce and upgrade biogas made from Gasum’s vision of a cleaner tomorrow will become a re- biodegradable waste, and the Gasum subsidiary Skangas ality through new innovations and efficient gas solutions. is the leading LNG expert in the Nordic countries. Oppor- Efficient gas solutions are a prerequisite for the achieve- tunities for gas use are expanded into new geographical ment of the emission targets set for Finland and for the areas by biogas and LNG, which can also be seen in the realization of a clean energy future. In innovations Gasum broadening of Finland’s energy portfolio: the country’s first is creating the new on top of the old as the natural gas LNG import terminal was completed in Pori in August 2016. and LNG infrastructures are suitable as they are also for Our renewed strategy has clarified our vision and pro- biogas and liquefied biogas. vided guidance for action such as investment decisions Key issues here are competitiveness, increasing aware- paving the way for the Gasum of the future. The results ness of the opportunities provided by gas, and active uti- are clear: in 2016 the sales of Finnish biogas increased by lization of new opportunities. The four components of 54% in comparison with the year before. LNG deliveries our strategy form the foundation for our operations and also increased year-on-year.

OUR SUPPLY CHAIN

PRODUCTION, SOURCING AND SALES TRANSMISSION AND DISTRIBUTION USAGE Diversification and active development Transmission and distribution of gas with ex- Diverse use of natural gas and biogas in of gas infrastructure and competitive cellent supply security and safety levels and energy production, industry, homes and supply of gas. taking the customer into consideration. land as well as maritime transport. Emission-reducing solutions.

8 A CLEANER TOMORROW ORGANIZATION AND BUSINESS UNITS

GASUM GROUP ORGANIZATION JAN 1, 2017

STRATEGY Juha Häkämies Strategy, digitalization, R&D, HSEQ

COMMUNICATIONS Olga Väisänen Communications, Marketing, Public Affairs, Customer Service NATURAL BIOGAS TECHNICAL LNG GAS SERVICES Jouni Jukka Jarko Tor Morten LEGAL AFFAIRS, HR Haikarainen Metsälä Alanko Osmundsen Kristiina Vuori Legal Affairs, HR

FINANCE Lasse Aarnio Finance, IT

CHIEF EXECUTIVE OFFICER Johanna Lamminen

MEGATRENDS TRANSFORMING THE OPERATING ENVIRONMENT The Gasum strategy is based on the following global megatrends:

RESOURCE WISDOM ACTIVE CUSTOMERS DIGITALIZATION Increased efficiency in resource use is re- The future will be characterized by con- Digitalization will enable increases in op- quired due to population growth and cli- sumer awareness of their own consumption erational efficiency for increased compet- mate change, with a key role played by im- choices. Consumers will more and more ac- itiveness and environmental friendliness proved energy efficiency, storage of renewa- tively want to know the energy footprint of as well as improved supply security and ble energy, and the circular economy. their purchase decisions and control their predictability. energy consumption, which will pave the way for new energy technologies.

GASUM’S YEAR 2016 9 YEAR IN BRIEF

HIGHLIGHTS IN 2016

IC ECOL D AB R E O L N

May March Gasum joined Society’s Commitment The Gasum subsidiary Skangas to Sustainable Development. acquired the Norwegian Risavika LNG production plant from the New biogas customers in the first half include the Lyse Group. City of Helsinki energy company Helen, the furniture manufacturer Isku, Kaslink Foods, the steel industry January Gasum invested in biogas by company BE Group Oy Ab, the moving and logistics Gasum biogas awarded acquiring Biovakka Oy, a Finnish company Niemi Services, Sauna Arla, Scandic hotels, the Nordic Ecolabel forerunner in the biogas sector and the food company HoviRuoka, Bryggeri Helsinki for all of its uses. nutrient recycling. brewery restaurant and REDI shopping center.

February April June–July Gasum invested in biogas by acquiring Gasum and Soilfood started The historic first shipload of LNG arrived the Biotehdas chain of biogas plants. cooperation in recycled nutrients. at the Gasum subsidiary Skangas Pori LNG terminal in Finland. The Finnish Ministry of Economic Affairs Gasum announced plans to and Employment grants €5.38 million construct 35 new stations in the Skangas made the first delivery of in energy support to Gasum’s Riihimäki gas filling station network in the LNG to Finland’s first LNG-powered biogas plant, which is included in the coming years. icebreaker, . Government’s key projects.

10 A CLEANER TOMORROW YEAR IN BRIEF

August Finland’s first heavy-duty road vehicle October gas filling station was opened at Helsinki’s Gasum is among the first December Vuosaari harbor. companies to join the new Gasum purchased 100% of the Energy Efficiency Agreement shares of the biogas producer Gasum and Wärtsilä, a global leader in advanced for Industries. Swedish Biogas International. technologies and complete lifecycle solutions The transaction was on January for the marine and energy markets, began The first ship, NEOT’s Ternsund, 2017 and it makes Gasum the cooperation in gas value chain development in was bunkered at the Skangas Pori biggest producer of biogas in order to advance carbon neutrality. LNG import terminal. the Nordic countries.

September November The Gasum subsidiary Skangas opened The first gas filling station in Finland Finland’s first LNG terminal in Pori. intended for cars, commercial vehicles as well as heavy-duty road vehicles was An investment decision was made to opened in Turku. double the capacity of the Gasum Oulu biogas plant. The Visitor Centre of the food company Fazer in , Finland, switched to biogas.

GASUM’S YEAR 2016 11 DEVELOPING A SMART GAS SYSTEM

The Finnish energy market was diversified in 2016 thanks to the opening of the LNG terminal in Tahkoluoto, Pori. LNG enables deliveries to industrial operators outside the gas pipeline network as well as for maritime and road transport. Improved access to energy-efficient and clean LNG is an important step when we are moving towards a carbon-neutral society. Gasum is also planning the construction of 35 new filling stations in Finland. The development of the gas infrastructure is vital for the expansion of gas vehicle use: a comprehensive network will enable seamless and low- emissions driving on gas around Finland.

FINLAND'S MOST ENVIRONMENTALLY FRIENDLY LNG-POWERED ICEBREAKER Skangas bunkered Polaris for the first time

The production capacity of Risavika LNG production plant is 300,000 LNG terminal in operation tonnes/year LNG terminal under construction* LNG production plant Gasum, biogas Gasum, biowaste and biogas Biogas production plant **

* Manga LNG Oy joint project EPV Energia, Øra Outokumpu, SSAB and Skangas ** Joint project Risavika Lidköping

12 A CLEANER TOMORROW Lysekil GASUM WILL CONSTRUCT 35 new gas filling stations in the near future.

Tornio

Gasum acquired five Swedish biogas plants. Oulu Swedish Biogas International producing annual total 300 GWh Finland’s annual biogas of biogas. production potential up to 10–15 TWh/a.

FINLAND’S FIRST LNG IMPORT TERMINAL was opened in Pori Honkajoki

IN AUGUST Pori THE FINNISH 2016 TRANSMISSION Imatra PIPELINE NETWORK Huittinen Riihimäki Vehmaa Hyvinkää Mäntsälä

Turku The use of natural gas Helsinki Västerås in Finland was Örebro 24 Katrineholm TWh/a Vadsbo LNG INFRASTRUCTURE

FINLAND’S FIRST LNG TERMINAL KICKS OFF A NEW ERA FOR THE ENERGY MARKET

major milestone was reached for Gasum’s transmission pipeline network. LNG is also transported strategy in September 2016 when Finland’s from Pori to other ports. first LNG terminal was inaugurated in Pori. The terminal was completed ahead of schedule, and A The Pori terminal opened the first sea route LNG deliveries to customers began right away. Customers to Finland for LNG, and the successful project was on receive LNG either in the regasified form transmitted via the whole a major step towards a more diverse energy the local connecting pipeline or delivered by road tanker market in Finland. or by sea using LNG carriers. The Pori terminal is the third terminal in the Nordic countries for the Gasum subsidiary Skangas, and new ROUND-THE-YEAR SUPPLY CAPACITY – ones are likely to be seen in the future. LNG use will in- ENVIRONMENTALLY FRIENDLY ALTERNATIVE crease strongly in Finland in the near future. FOR SHIPPING The Pori terminal provides an uninterrupted service TERMINAL SUPPLYING NATURAL GAS FOR around the year. All terminal equipment is duplicated, USE NATIONWIDE IN FINLAND so there will be no downtime due to maintenance. The Located at the Tahkoluoto chemicals harbor, the import harbor is easily accessible by ships as the entrance is not terminal enables the supply of LNG for maritime trans- obstructed by islands and the fairway is deep (15.3 m). The port as well as industry outside the gas network. This average customer spends 15 hours at the harbor, during means the terminal is beneficial for the entire country, which LNG is pumped via a 300-m pipe at an hourly rate including areas not covered by the current natural gas of up to 1,500 m3.

14 A CLEANER TOMORROW LNG INFRASTRUCTURE

LNG INFRASTRUCTURE EXPANDING: LNG TERMINAL IN TORNIO, FINLAND, TO BE COMPLETED IN 2018

THE LNG TERMINAL IN TORNIO, Finland, is due for com- pletion in spring 2018, which is when the first LNG deliv- Gas-powered vessels are a logical way for shipping eries will take place. The terminal is constructed in co- companies and transport operators to comply with the operation between Gasum and its partner Manga LNG. latest environmental legislation. According to the sulfur Located in Tornio’s Röyttä harbor, the terminal will have emissions limits to enter into force in five years’ time, sulfur reception, unloading and bunkering facilities for large oxide emissions from ship exhausts must be reduced to LNG ships, regasification equipment for liquefied natural 3 below 20% of the current level. LNG also meets the nitro- gas, and a 50,000 m storage tank. The Tornio terminal gen limits and, at least in part, the carbon dioxide emis- will support not only the Gasum strategy but also the sion targets possibly adopted in the future. In addition EU’s Clean Power for Transport Package according to to being environmentally friendly, gas also helps reduce which LNG fueling facilities for vessels will be installed in operating costs in the shipping industry. all major EU ports and refueling stations for heavy-duty Therefore the use of LNG is expected to increase not road vehicles will be established within distances not ex- only in maritime transport but also in industry and road ceeding 400 km. transport. The Tornio LNG terminal will provide the North with a new and clean energy alternative that helps protect the FIRST BUNKERING COMPLETED IN OCTOBER region’s unique natural environment. The Outokumpu Tornio steel mill and the SSAB steel mill have al- The Pori terminal is the only place in the Gulf of Bothnia ready announced their switch to LNG, paving the way where bunkering can take place directly from the termi- for the arrival of a cleaner form of energy. nal, so the launch of bunkering at Pori kicked off a new era for Finnish maritime transport sector.

GOODBYE TO BLACK SMOKE – POLARIS CHANGED THE GAME

MARITIME TRANSPORT is switching to volume of LNG corresponding to the fuel RATE OF CHANGE ACCELERATED liquefied natural gas (LNG): almost all consumption of around 20,000 cars. This BY LNG TERMINALS new ships entering into service in the means shipping investments in LNG in- There are already hundreds of LNG-pow- Baltic Sea use LNG as their primary fuel. crease environmental benefits as well as ered passenger and cargo ships sailing The Finnish icebreaking service company LNG volumes, which then helps improve the world’s seas, and in countries such as ’s brand-new Polaris is the world’s access to LNG and strengthen its distribu- Norway the shipping use of LNG is already first LNG-fueled icebreaker. The rise of tion network. commonplace. According to the Finnish Finnish LNG-fueled vessels in the Baltic Launched in 2013, M/S Viking Grace was Shipowners’ Association, its members have Sea is made possible by Gasum. the first large passenger ship of its kind to a total of two LNG ships in operation, in- be powered on LNG. More orders for LNG cluding Polaris. The third one is the Border LNG SHIPS – THE NORM ships to sail the Finnish waters have since Guard’s patrol vessel Turva. Another nine FOR THE FUTURE been placed, with the latest addition to LNG vessels are currently under construc- Switching to LNG is a significant step for the Baltic’s fleet of LNG-fueled ferries be- tion. Shipyards are already installing LNG ships as regards emission cuts because, ing the Tallink fast ferry Megastar that engines as the default option. In the future for example, the Viking Line passenger started to operate on the Helsinki–Tallinn maritime transport is anticipated to gradu- ferry M/S Viking Grace uses an annual route in January 2017. ally phase in fully emission-free local biogas.

GASUM’S YEAR 2016 15 LNG FOR MARITIME TRANSPORT

GASUM TECHNICAL SERVICES NOW OPERATING NATIONWIDE IN FINLAND

WITH THE GAS ECOSYSTEM GROWING, the de- mand for gas technology professionals is also in- creasing. Gasum Technical Services was involved ever since the groundwork phase in the prepara- tions for the commissioning of the Pori terminal. LNG, biogas and the road fuel filling station net- work are expanding the scope of our Techni- cal Services from within the gas pipeline network into a nationwide operation. In 2016 the network of partners was developed to ensure service pro- vision to a growing number of customers.

Bunkering from road tankers is also becoming more common around Finland, making it easier for shipping companies to achieve their environmental objectives. The first vessel – the product tanker Ternsund – was bun- kered in a quick and safe operation in October. Ternsund is the first of four new LNG-fueled vessels owned by the shipowner LNG – A CLEANLY Terntank and operated by the Finnish company North Euro- BETTER FUEL pean Oil Trade (NEOT). ”We’re very satisfied that we now have the opportunity to LIQUEFIED NATURAL GAS (LNG) is natural gas bunker LNG in Finland right beside one of our terminals. We that has been converted to liquid form. LNG can will run Ternsund both along the Finnish and Norwegian coast replace petroleum-based fuels in maritime trans- as well as in the Gothenburg area. It’s advantageous for us that port, industry, heavy-duty road transport and Skangas can offer bunkering at several locations where we energy production. Natural gas stays in the liq- trade in Finland, Norway as well as Sweden,” says NEOT Char- uid phase if cooled to -162 °C. This is why it needs tering Manager Satu Mattila. to be transported in a purpose-built insulated ”LNG has been a hot potato for the sector for a long time. carrier. Once liquefied, natural gas only occupies There have been doubts about the Baltic Sea LNG infrastruc- 1/600 of the gaseous volume. This enables the ture, and there was a long period with a kind of deadlock sit- transport of LNG by carrier or road tanker over uation between demand and supply. Because we know our long distances without any transmission pipe- routes in advance, we were able to have confidence in the lines or pumping stations. Before being used as a eventual development of the infrastructure – which is exactly fuel, LNG is regasified. what has happened now. The quality of LNG has also now been The biggest advantage of LNG is its environ- proven, and the environmental benefits can also be seen by us mental friendliness. LNG is the cleanest fossil fuel. at ports as lower operating costs,” Mattila continues. Its CO2 emissions are more than 20% lower and ”Our work with Skangas has been effortless and the learning nitrogen emissions 85% lower than those from curve has been steep. The sector’s undergoing a clear trans- other fossil alternatives. LNG is also a fully sul- formation as fossil fuels are being replaced by more sustaina- fur-free fuel. The production process is efficient ble alternatives. In ten years’ time we’ll hopefully already have from the customer perspective, and the mainte- progressed really far in this development,” Mattila sums up. nance and operating costs are low.

16 A CLEANER TOMORROW LNG FOR INDUSTRY

BORREGAARD AIMING HIGH

leading producer of wood- a Skangas LNG customer in 2013. The de- solve on this matter, and we regard natu- based chemicals in the world, cision was based not only on emission tar- ral energy gases as important elements in the Norwegian Borregaard gets but also on cost considerations. At the our energy mix,” says Borregaard Energy AGroup’s mission is to replace same time the company is also focusing Director Jostein Røynesdal. oil-based products with those produced on waste-to-energy implementation. Borregaard views shortage of infra- from wood. The company’s flagship is the “We have been exploring sustainable structure as the biggest challenge to the Sarpsborg biorefinery, which makes prod- energy solutions for the past 15 years. Re- mainstreaming of LNG. Cooperation with ucts including specialty cellulose, vanillin, cent developments such as the Paris cli- Skangas has been smooth, and the com- lignin and bioethanol. Borregaard became mate targets have strengthened our re- pany finds LNG easy to use.

“We have been exploring sustainable energy solutions for the past 15 years. Recent developments such as the Paris climate targets have strengthened our resolve on this matter, and we regard natural energy gases as important elements in our energy mix.”

GASUM’S YEAR 2016 17 SOLUTIONS FOR LAND TRANSPORT

CONTAINER- SHIPS IN BRIEF: ∙ Fleet of 16,000 marine containers ∙ Around 150 trucks and 11 ships ∙ 600 employees ∙ Offices in 21 countries ∙ Listed on the stock exchange in 2015 ∙ Aims at 10% annual growth

18 A CLEANER TOMORROW SOLUTIONS FOR LAND TRANSPORT

CONTAINERSHIPS INVESTS IN THE FUTURE Containerships is glad about the development of the gas filling station network for heavy-duty vehicles because that will extend the operating range of the company’s LNG-fueled truck to nationwide coverage.

ounded in 1966, Containerships is a Finnish materials as well. Our aim is to be able to trans- family-owned logistics business that took port products from every corner of Europe to its first truck fueled exclusively on LNG into Finland emission free. For land transport this is F test use in 2013. Due to limited access to already a reality between Britain and Finland LNG, the truck soon had to be relocated to Rotter- – pickups in Britain and land deliveries at the dam, from where it returned to Finland in summer Finnish end all take place cleanly with LNG,” says 2016. The return was made possible by the comple- Piskunen. With LNG-powered ships the entire tion of Gasum’s filling station in Vuosaari, Helsinki, transport chain will be fueled by LNG in 2018. with the decision also made easier thanks to good Gasum is developing the heavy-duty vehi- results obtained in a trial program in Britain. The cle station network: the new Vantaa and truck is used to transport containers in Southern Jyväskylä filling stations will be com- Finland. The range of the LNG-fueled heavy vehicle pleted this year, and two more have is 600 km at a time. already been announced. This ex- At the moment Containerships has 34 dual-fuel tends the operating area of the vehicles running on LNG in Britain, and the num- Containerships gas truck, mak- ber will increase by six by the end of the year. ing the company able to serve the ”This is about our firm determination to move entire country soon. towards a carbon-neutral alternative. We’ve found It is hoped that ancillary services for LNG to be safe, and the fill-up intervals are also com- driver wellbeing will be made available in parable to those of the diesel fleet,” says Contain- conjunction with stations. Gasum seeks to in- erships Land Operations Manager Tomi Piskunen. troduce LNG refueling points at existing service ”We’re on the road towards responsible trans- stations as well. port. We’ve been happy to notice that our clients ”LNG is the strategy chosen by Containerships are proud to mention our LNG truck in their own for the future,” Piskunen sums up.

HOPING TO SEE LEGISLATION AMENDED

CONTAINERSHIPS HOPES to see govern- LNG projects receive government sup- ation on driving power and the expansion ment support to LNG projects. port in the company’s other operating of the filling station network to make envi- ”When getting something done is down country, Britain, and over there LNG trucks ronmentally friendly LNG more commonly to your own effort, it means projects span- are already a much more common sight used. ning several years. The environment would on the roads. ”These changes would have an immedi- be thankful if access to financial support Gasum and Containerships are making ate impact of the status of the environment was easier,” Piskunen points out. a joint effort to advance reductions in tax- – today and tomorrow,” Piskunen says.

GASUM’S YEAR 2016 19 SOLUTIONS FOR TRANSPORT

BIOGAS BECOMING MAINSTREAM – NIEMI SERVICES NOW MAKING CLEAN MOVES More and more companies are choosing the greener alternative for their logistics. One of the biggest is Niemi Palvelut.

20 A CLEANER TOMORROW ENG karttaSOLUTIONS FOR TRANSPORT

n May, Niemi Services, Finland’s leading service network and improved conditions for gas vehi- BIOGAS IS provider in moving and logistics, took an impor- cle use. MADE FROM tant step towards cleaner transport by getting “The government should use tax measures BIODEGRADABLE WASTE Imoving vehicles fueled with 100% Finnish Gasum to support more environmentally friendly trans- biogas. This makes it the first player in Finland to of- port and make the situation easier for biogas and BIOGAS IS a local biofuel fer clean and ecological biogas moves. electric cars – be it through car tax or the excise always made from fully re- The Niemi fleet now includes 15 biogas vehicles, duty on fuels. In countries like Sweden the num- newable feedstocks. two of which are large 18-tonne Volvo trucks. The ber of biogas vehicles is many times higher than The Gasum Group’s 12 bio- biogas-fueled moving vehicles are used alongside over here.” gas plants are located in the traditional fleet in Helsinki and around the cap- Huittinen, Honkajoki, Kuo- ital region. The company also aims to increase the BIOGAS THE ONLY OPTION pio, Oulu, Riihimäki, Turku number of gas vehicles as the gas distribution net- Environmental values and reducing transport and Vehmaa, Finland, and work expands. The company’s aim is reaffirmed by emissions play a key role for the company. Ac- Jordberga, Katrineholm, inquiries made by customers about biogas vehicles. cording to Niemi, in this respect biogas was an Lidköping, Örebro and “As the market leader we wish to act as a forerun- obvious choice and actually the only option. Västerås, Sweden. In ad- ner and lead the way for other enterprises in our sec- “Biogas is a 100% Finnish and renewable fuel dition, Gasum has a 50% tor. We monitor the key environmental impacts of with zero fine particulate emissions. There aren’t shareholding in Vadsbo our work and develop our operations according to really any other corresponding fuel options avail- Biogas in Sweden. Gasum the principle of continuous improvement to mini- able for heavy-duty road vehicles – at least not also produces biogas with mize any environmental burden caused by us,” says ones that are 100% Finnish. Local sourcing is partners in Espoo, Kouvola Niemi Director Juha Niemi. very important to us. After all, our company was and , Finland. “We’re very happy about our biogas cooperation awarded the Made in Finland Key Flag Symbol with Niemi Services. Today’s consumers are increas- in 2015.” ingly aware about sustainability. It’s great that Niemi Services wishes to be a forerunner in Finland and offer consumers cleaner transport and moves. At Oulu the same time the company contributes toward GAS VEHICLE reductions in carbon dioxide and local emissions FILLING STATIONS by securing cleaner air for people to breathe,” says Gasum CEO Johanna Lamminen. IN FINLAND (28) Gasum filling station SUPPORT NEEDED FOR Other operator’s GREEN TRANSPORT filling station The Executive Director of Niemi Services Ilpo Niemi Gasum’s filling station under flies the flag high for a more extensive filling station planning Jepua

Vaasa

Leppävesi Jyväskylä

Joutsa Pori 2 Tampere Lempäälä Imatra Hämeenlinna Lahti Forssa Riihimäki Kouvola Hyvinkää Mäntsälä Hamina 2 Turku Järvenpää Kotka Lohja 2 Porvoo 7 3 Helsinki Metropolitan Area

GASUM’S YEAR 2016 21 PLENTY OF STRATEGIC POTENTIAL IN CIRCULAR ECONOMY

In the circular economy materials wastage and waste generation is minimized and wastes and side streams are circulated comprehensively back into raw materials through nutrient recycling. Gasum’s biogas production is a model example of well-functioning circular economy. This entails broad systemic change where wastes that used to be seen as cost items are turned into energy and useful products while at the same time being environmentally sound.

Through partnerships and acquisitions we have created a framework for our Biogas business that covers gas solutions for transport and industry, processing of biodegradable waste, and utilization of nutrient residues with the help of our partner as fertilizers. This means the circular economy has become an integral part of our story in all customer segments, and there is plenty of potential for growth. Demand for circular economy solutions has increased, and added value for our customers is always generated by our agile experiments.

LNG FILLING STATIONS FOR HEAVY-DUTY VEHICLES Providing improved access to lower- LNG IMPORT emissions energy TERMINAL in heavy-duty road Serving heavy-duty transport vehicles and industry and maritime transport

LNG

CORALIUS is the first European built LNG bunkering ship of Skangas

22 A CLEANER TOMORROW BIOGAS, NATURAL GAS 23

LNG GASUM’S YEAR 2016

process AND CROPS The biogas plants WASTE, MANURE WASTE, BIODEGRADABLE BIODEGRADABLE natural gas natural GAS FILLING STATIONS FILLING GAS with biogaswith and fill-up biogas gas or natural RETAIL OUTLET OUTLET RETAIL produces productsproduces

INDUSTRY FERTILIZERS FOR FOR FERTILIZERS are processed into LOCAL FARMS AND AND FARMS LOCAL in biogasin production Digestates generated generated Digestates NATURAL GAS NATURAL BIOGAS,

(CHP) production (CHP) with cleanerwith energy, biogas and gas natural INDUSTRIAL USE AND COMBINED HEAT AND POWER POWER AND HEAT COMBINED BIOGAS FOR A CLEANER TOMORROW

DAIRY FACTORY MILK DELIVERY

Biowaste products collected through- out the country COMBINED HEAT end up at a Gasum FOOD INDUSTRY, AND POWER (CHP) WASTE TRANSPORT RETAIL OUTLET PRODUCTION biogas plant.

BIOGAS PLANT WASTE TRANSPORT LOCAL ENERGY FROM WASTE

asum is the biggest processer fuel. With the investment Gasum is im- and logistics solutions are important of biodegradable fractions in proving access to biogas, particularly in components in the journey towards a the Nordic countries. Every areas outside the gas pipeline network, carbon-neutral society. There is consid- Gyear hundreds of thousands increasing waste treatment capacity and erable potential in Finland alone. The of tonnes of biodegradable materials are enabling the development of regional gas feedstock base used in biogas produc- treated by biogas plants in Finland, pro- solutions and even more comprehensive tion is sustainable and broad, ranging cessing these into biogas and recycled service provision for its customers. from industrial and municipal sewage nutrients. The aim is to expand the biogas Gasum now has a total of 12 biogas sludge to solid biodegradable waste market to the terawatt-hours range at the plants and 3 partner plants. The Finnish such as cattle manure, and solid bio- annual level in Finland by 2025. biogas plants (7) are located in Honka- waste from homes and industry that joki, Huittinen, Kuopio, Oulu, Riihimäki, would otherwise end up in incineration, RISE TO NUMBER ONE Turku and Vehmaa. The partner plants landfill sites or composting. At the mo- IN THE NORDICS are located in Espoo, Kouvola and Lahti. ment of lot of sludge is taken to incin- Gasum purchased 100% of the shares of The biogas plants process sewage sludge eration, and the majority of single- and the Swedish biogas producer Swedish from wastewater treatment plants, side two-family houses are not obliged to Bio gas International, which made Gasum streams from food industry, biowaste collect biowaste separately. This means, the biggest biogas producer in the Nordic from homes, and inedible food waste for example, that up to one-third of countries in January 2017 acquiring the from all Finnish food chains. mixed waste consists of biodegradable ownership of five biogas plants, located in waste that could be used as feedstock Jordberga, Katrineholm, Lidköping, Öre- BIOGAS HAS ENORMOUS at biogas plants. According to analyses, bro and Västerås. In addition, Gasum has POTENTIAL FOR GROWTH adding field biomass, cattle manure a 50% shareholding in Vadsbo Biogas in Biogas is an important part of the Gasum and wood-based biomass to this takes Sweden. The current annual production strategy, with investments in the Biogas Finland’s annual biogas production po- of the Swedish plants is around 300 GWh, business so far totaling €100 million. In tential to up to 10–15 TWh/a. and this biogas is mainly used as a road addition to energy, waste management

24 A CLEANER TOMORROW BIOGAS FOR A CLEANER TOMORROW

VALIO BYPRODUCTS MADE INTO BABY FOOD AND BIOGAS

lmost half of Valio’s cheese prove its productivity and supply secu- products are made at the com- rity through cooperation because the pany’s Lapinlahti plant in Fin- processing of components not suitable Aland. The whey remaining as a for food manufacture made the facto- byproduct of cheese manufacture used to ry’s processes unnecessarily cumber- end up as pig feed and is also commonly some. The company has now been able regarded as waste elsewhere in the world, to free up resources for the actual pro- but the Finnish dairy company Valio pro- duction process. cesses it further into valuable ingredients ”Valio’s side fractions are turned for infant formula that it exports to more into energy and fertilizers used in lo- than 30 countries. cal fields in the same region where our Whey not suitable for further pro- milk comes from. This, if anything, is a cessing is taken as side streams to prime example of the circular econ- Gasum’s Kuopio biogas plant. The part- omy,” says Lapinlahti Plant Director nership between Gasum and Valio be- Kari Lappi. gan in early 2016. Valio wanted to im- Photo: Valio

GASUM’S YEAR 2016 25 SUPPLY-SECURE AND FLEXIBLE NATURAL GAS

Photo: Ovako Steel/Peter Phillips NATURAL GAS BUILDING A BRIDGE

STEEL MILL RUNNING ON NATURAL GAS Operating in Imatra, Finland, Ovako Ima- tra Oy Ab is one of Gasum’s oldest part- ners – cooperating with us for the past four decades since the mid-1970s. Ovako is a leading European producer of engineering steel for customers in the bearing, trans- port and manufacturing industries. The Ovako Group is also the largest consumer of recycled scrap in the Nordic countries. hings are happening around nat- The primary reason for the switch from ural gas. The opening of the Pori oil to natural gas all those years ago was the LNG terminal provided broader location of Ovako Imatra. The plant is close Taccess to natural gas in Finland, to the natural gas pipeline crossing the including in areas outside the pipeline Finnish-Russian border, which has made network, and the first LNG filling stations natural gas a logistically easily accessible for heavy-duty road vehicles were opened solution to the plant’s varying needs. The in Helsinki and Turku. transition required combustion technology Gasum’s traditional natural gas busi- alterations, and oil burners were replaced ness helps build a bridge to a cleaner to- by gas burners. Today most of the plant’s morrow. Natural gas is a low-carbon alter- current equipment is built to natural gas native compared with coal and oil. Our specifications, and natural gas is the big- The price of natural gas customers also appreciate the supply se- gest source of energy for the Imatra plant. curity and flexibility of gas. Despite this, the Ovako Imatra uses natural gas for many was highly competitive position of gas has been weakened in Fin- different purposes: for billet heating, in in European comparison land’s energy and climate policy through melting furnaces, heat treatment furnaces, during the year under measures such as increasing its taxation in steam boilers, flame-cutting and property heat production. heating. review in Finland, and The price of natural gas was highly com- Ovako Imatra is particularly happy about Gasum is making every petitive in European comparison during Gasum’s supply security and expertise in the year under review in Finland, and technical natural gas work. The use of nat- effort to maintain this Gasum is making every effort to maintain ural gas is also easier than that of other fu- competitive advantage. this competitive advantage. We are work- els such as oil as the technology is simpler. ing very hard to prevent any further obsta- At Ovako by-products and waste are uti- cles to gas use. Natural gas has an impor- lized in various processes as recycled ma- tant role as an industrial raw material, and terials. The strongly forward-looking plant the well-functioning transmission network also regards the use of biogas alongside also enables the increasing transmission of natural gas as an interesting option for cer- biogas for industrial customers. tain product lines.

26 A CLEANER TOMORROW SUPPLY-SECURE AND FLEXIBLE NATURAL GAS

STORA ENSO HAS LONG EXPERIENCE IN NATURAL GAS USE IN FINLAND

he provider of renewable pack- ply security, transparent and reasonable aging, biomaterials, wood and pricing, and good quality. ’s re- paper solutions Stora Enso is a sponsibility requirements are among the Tlong-time natural gas customer. key performance indicators concerning The company started to use natural gas suppliers that are monitored actively. in 1973 at the Honkalahti Sawmill in Jout- ”Our cooperation with Gasum has seno, Finland. This is the first known oc- worked well, and what we also appre- casion of natural gas combustion in Fin- ciate in Gasum is the customer-driven land. approach, in which the company has Stora Enso uses natural gas primarily shown continuous development. We at its Eastern Finnish production facilities look forward to the future development as a process and power plant fuel. of the Finnish gas market,” says Elina The company’s criteria for its suppliers Seppälä, Director, Energy Sourcing, from include operational reliability and sup- Stora Enso.

Photo: Stora Enso

GASUM’S YEAR 2016 27 OUR CORPORATE RESPONSIBILITY PROGRAM

Our Corporate Responsibility Program promotes sustainability in line with the Gasum strategy. For us responsibility means taking economic, social and environmental responsibility into account. In our Corporate Responsibility Program we have summarized our key corporate responsibility issues into four themes and related corporate responsibility objectives set in 2016.

28 A CLEANER TOMORROW CARBON-NEUTRAL FUTURE BETTER SOCIETY AND INNOVATIONS WITH OUR STAKEHOLDERS • Emission-reducing solutions • Openness, transparency and active dialog • Expansion of the gas market • Investments and taxes • Development of new business models • Personnel wellbeing and competences and partnerships • Competitiveness of gas OBJECTIVES • Investing in the Nordic countries and contributing OBJECTIVES towards strengthening the national trade balance • Targeting R&D to increase biobased production • Developing our competences in order to implement and improve energy efficiency our strategy in a changing operating environment • Expanding the biogas market to the terawatt-hours range at the annual level in Finland by 2025 • Creating new business partnerships and utilizing new technologies

FORERUNNER IN SAFETY UNDERSTANDING LIFE-CYCLE IMPACTS AND SUPPLY SECURITY • Supply chain efficiency and impacts • Promoting safe use of gas • Product use impacts • Corporate and personnel security • Supplier responsibility • Supply reliability OBJECTIVES OBJECTIVES • Promoting the transition to a low-carbon society • Achieving zero injuries and accidents at work • Achieving through energy saving actions a • Achieving zero unforeseen delivery disruptions in reduction of 7.5% from the 2015 level in energy gas supply consumption by 2025 • Ensuring the realization of responsibility in the supply chain together with our suppliers

GASUM’S YEAR 2016 29 CORPORATE RESPONSIBILITY

FUTURE BECOMES A REALITY THROUGH ACTION Gasum is building a cleaner tomorrow through agile and purposeful measures independently as well as in Finnish and international networks.

s a forerunner in the energy sector, Gasum is in- developing modeling. This improves supply security vesting in development, research and innova- and predictability and generates cost savings for our tions. In the Gasum vision, coal will have been customers. We’re also building solutions utilizing digi- Aphased out, biogas will have gained a signifi- talization for our customers,” says Juha Häkämies, Vice cant role in Nordic energy production, a switch to clean President, Strategy. energy will have taken place in maritime and road trans- Digitality also opens doors to the improved moni- port in the Baltic Sea region, and the energy-efficient toring of the generation of waste fractions, making it storage of renewable energy will have become possible. easier to direct them to the right place for processing. The hydrogen economy will also have gained ground. Targeting the production of renewable gas at the right consumption sites is also important. DIGITALITY AT THE FOREFRONT “Digitalization enables us to increase the efficiency of IMPORTANT ROLE PLAYED our own operations to an even more environmentally BY DEVELOPMENT WORK friendly level through actions such as optimizing logis- Gasum is supporting gas-related research and devel- tics, facilitating data collection and measurement, and opment work through several international and Finn-

RECYCLED FERTILIZER COOPERATION BETWEEN SOILFOOD AND GASUM

SOILFOOD AND GASUM launched their “Soilfood’s fertilizers and soil condi- These recycled fertilizers are manufac- cooperation in the production of recycled tioners can at the same time improve tured in compliance with the Act on Fer- fertilizers in conjunction with the Oulu soil fertility and agricultural profitabil- tiliser Products, and their hygiene quality, and Riihimäki biogas plants. Soilfood pro- ity as well as reduce emissions and fix cleanness and product safety are moni- cesses digestates from biogas production carbon in the soil”, says Saara Kankaan- tored through the own-checks system. into recycled fertilizers for agriculture. rinta, co-founder of Soilfood Oy. For Gasum this cooperation with Soil- Recycled fertilization is offered to farmers “Looking after the soil is the best in- food is part of the broader partnership as a full service tailored to their soil and vestment a farmer can make. We can also that began in spring 2016 and a continu- plant needs and even includes field ap- guarantee our products a lower price per ation to the circular economy thinking in plication. Nutrient-rich sludge is used to hectare than with chemical fertilizers,” line with our strategy. replace chemical fertilizer products. says Eljas Jokinen, CEO of Soilfood Oy.

30 A CLEANER TOMORROW CORPORATE RESPONSIBILITY

ish cutting-edge research projects. Development work also takes place in partner networks with cus- Energy efficiency and operational tomers and feedstock suppliers. In 2016 research grants totaling €108,000 were is- reliability were improved during sued from the Gasum Gas Fund. the year through operational Renewal arising through technology development slots smoothly into Gasum’s business and internal pro- optimization and replacement of cesses. R&D seeks to serve business functions by direct- pressure reduction station boilers ing supply in the renewable energy market. Investments in R&D can also be seen in recruitments to increase com- and blowdown valves. petencies in fields such as renewable gas production.

GASUM CONTINUES TO LEAD THE WAY IN ENERGY EFFICIENCY Gasum is improving the energy efficiency of operations, products and services through a certified ISO 50001 en- ergy management system (EnMS). Energy efficiency and change. Gasum has made a commitment to the shared operational reliability were improved during the year 7.5% energy savings target under the Action Plan for the through operational optimization and replacement of Energy-Intensive Industry. Gasum’s energy management pressure reduction station boilers and blowdown valves. is guided by the targets set under the Energy Efficiency A Bachelor’s thesis was also produced in 2016 on EnMS Agreement. development, focusing on the development of reporting templates for energy efficiency monitoring and docu- NEW WAYS TO MAP OUT mentation. Energy efficiency indicators, development METHANE EMISSIONS ideas as well as new objectives and potential energy sav- We seek to minimize our greenhouse gas emissions and ings were discovered through interviews with Gasum’s pay particular attention to the share of methane emis- Energy Contact Persons. sions. One of our important development areas has been In September, Gasum was among the first compa- to find even more efficient and reliable ways to map out nies to join the new Energy Efficiency Agreement for methane emissions. Industries for the 2017–2025 period. The voluntary En- In this we have cooperated with the emissions meas- ergy Efficiency Agreements are a tool chosen together urement technology development company Aeromon, by the Government and industries to fulfil the inter- and the results from the first test measurements con- national obligations set for Finland without enacting ducted in 2016 are promising. We will continue the ap- new legislation. The responsible and efficient use of en- plication of the method with plant-level testing to eval- ergy reduces carbon dioxide emissions causing climate uate its suitability for use on larger structural entities.

GASUM’S YEAR 2016 31 CORPORATE RESPONSIBILITY

he year 2016 will remain in history as a year of major energy and climate policy decisions. CLEAN GAS The global Paris Agreement on climate change T entered into force in late 2016, and important energy policies were outlined nationally as well as at the European Union level. SOLUTIONS In the first half the European Commission focused on top-level goals. In its summer package, the Com- mission outlined the rates of cuts on emissions from SUPPORTING non-emissions trading scheme sources each Member State should achieve in 2021–2030. The target set for Finland is a 39% reduction from 2005 emission levels. NEW ENERGY Published towards the end of the year, the Commis- sion’s winter package proposed a set of measures for the energy sector to keep the EU competitive. One of AND CLIMATE the concrete proposals for a revised Directive reinforces the current EU sustainability criteria on bioenergy and extends their scope to also cover biogas. POLICY In Finnish policy-making the energy debate was dominated by the preparation of the new National En- ergy and Climate Strategy. Published in November, the Steps are being taken in energy and strategy acknowledges the important role played by climate policy at every decision-making level towards a low-carbon society. Versatile gas plays an important role in the achievement of ambitious emission targets.

32 A CLEANER TOMORROW CORPORATE RESPONSIBILITY

gas during the period of transition towards a carbon-free Gas plays an obvious role as a fuel replacing energy system. The target set for renewable energy is in The aim high-emission energy sources. For example, in com- part based on the increased production and use of re- bined heat and power (CHP) production, natural gas newable gas, which increases the significance of gas in is for is the quickest and most cost-effective way to replace the Finnish energy system. Finland coal. Despite the carbon dioxide emissions from nat- The strategy also creates a strong foundation for the ural gas being 40% lower than those from coal, Fin- rapidly developing biogas market. In the future, biogas to have land’s current steering methods have not managed will have an even more central role as a transport fuel in at least to provide incentives to replace coal. particular: the aim is for Finland to have at least 50,000 The Finnish gas infrastructure has been expanded gas-fueled vehicles in 2030. 50,000 significantly by the Pori LNG import terminal. LNG Transport is the biggest polluter among the non-emis- gas-fueled provides a new way of replacing oil-based fuels in sions trading scheme sectors, and measures to address vehicles in such industrial uses where this used to be logisti- this are at the core of national as well as EU-level poli- cally impossible. This development will continue in cy-making. Increasing the transport use of gas on land 2030. 2018 when the LNG terminal due to open in Tornio, and at sea is one of the key ways of reducing transport Finland, will diversify the Northern Finnish energy emissions. palette. A lot has already taken place: The number of LNG-pow- As well as facilitating a low-carbon transition pe- ered vessels is increasing rapidly in maritime transport. riod, the Nordic gas ecosystem is already reaching for The Finnish target of 50,000 gas vehicles is a good start a carbon-free society. The current gas network can be for cleaner road transport. Clear steps forward also include utilized for biogas, liquefied biogas and in the future the LNG filling stations aimed at heavy-duty road vehicles, also syngas. As a bridge-builder, gas plays a decisive of which there will be four in Finland by the end of 2017. role in energy and climate policy.

GASUM’S YEAR 2016 33 CORPORATE RESPONSIBILITY

NEW WAYS TO IMPROVE OCCUPATIONAL HEALTH AND SAFETY

Safety is not only at the core of Gasum’s strategy but also vital for its success. Occupational health and safety is being developed actively. In safety and security, key roles are played by awareness and attitude. The security of gas supply is at an excellent level in Finland.

n line with the Gasum strategy, we are take a brief moment to think before be- ”The contribution of every single one of strengthening our Safety First culture. ginning each task. Gasum also uses the us at Gasum is important. Gasum expects Our objective is that no damage or ac- Safety TAVA system for work safety man- everyone to have a safety-first attitude, Icidents take place in our activities or agement and reporting to collect safety take responsibility and care for co-work- the end use of natural energy gases. Our observations. ers and the working environment,” says corporate safety and security culture is Other actions include the safety and Gasum Group HSE Manager Aki Huomo. responsible, proactive and learning: each security online course and staff lunches Occupational health and safety issues Gasum employee is encouraged to antic- on the theme. Intended for our employ- are monitored as regards number of ac- ipate and consider safety and security is- ees and partners, the online course covers cidents, lost time injury rate, safety obser- sues in their own work. basic safety and security issues as well as vations reported as well as actions taken safe working methods. Gasum is also pi- in response to them. SAFETY AND SECURITY AS PART loting mobile tools for safety inspections ”Even a single accident is one too OF PROFESSIONAL COMPETENCE and audits. many. We’ve organized safety info events Gasum is continuously developing tools and launched regular safety meetups and methods to improve safety and secu- GASUM SAFETY CULTURE held by supervisors as well as a Gasum- rity. Our maintenance continued the use ROADMAP COMING UP wide safety culture roadmap.” of the instant risk prevention tool intro- A total of 17 accidents, of which 7 resulted in A new measure launched in 2016 duced last year. The tool encourages to more than a day off work, took place in 2016. was online staff training in cybersecu-

34 A CLEANER TOMORROW CORPORATE RESPONSIBILITY

GASUM BEARS RESPONSIBILITY FOR SAFETY AND SECURITY IN THE ENTIRE SECTOR

GASUM IS A KEY ELEMENT of the energy supply infrastructure of the Finnish society. This position assigns us with responsibility for safety and security in the entire sector, all the way to the end users of gas. We ex- ercise this responsibility in contexts including stakeholder advocacy, statements to authorities and many types of collaboration taking place in organizations.

rity based on one hand on Gasum’s role Incidents and threats are analyzed, as a critical player in society and on the and corrective measures are taken in other on the ongoing debate on the response. Supply disruptions are ex- OUTSTANDING topic. The development of the entity of tremely rare. In 2016 the amount of gas LEVEL OF cybersecurity measures will also con- not delivered was only 0.606 Gwh (cor- SAFETY IN PORI tinue this year. responding to 0.0025% of the total vol- LNG TERMINAL CONSTRUCTION ume of gas transmitted). WORK GAS SUPPLY SECURITY AT EXCELLENT LEVEL OPPORTUNITIES THE CONCRETE DOME IN PORI PROVIDED BY Spanning more than 40 years, our coop- would fit a cup of coffee for every day DIGITALIZATION eration with the gas supplier enables ex- of the year for 103,000 people. Fin- cellent supply security of natural gas. The ”New digital solutions help us find po- land’s first-ever LNG terminal is his- supply security of natural gas has been tential areas in need of development toric in its own right, but the outstand- at an extremely high level throughout more easily than before. Digitalization ing level of safety maintained during these decades. may also bring about innovations as the construction process is at least as In addition to our trusted supplier, regards the tools we work with – per- historic as an achievement. key roles are also played by our sys- haps one day we might be able to use An exceptional focus was placed tematic and preventative maintenance smartglasses with safety instructions on staff training, and the site was su- work, continuous gas network monitor- displayed in front of our eyes,” Huomo pervised by a special on-site safety ing, real-time alerts and duplication of sums up. officer. Safety was also ensured by equipment. Digitalization is expected to Supply security is also improved fur- strong partners, management com- bring about new opportunities in tasks ther by the expansion of the gas mar- mitment and special encouragement such as network monitoring, data col- ket and the utilization of the Nordic gas to report safety observations. This lection and analysis as well as mainte- ecosystem in line with the Gasum strat- helped achieve zero accidents result- nance work. egy. ing in time off work.

GASUM’S YEAR 2016 35 CORPORATE RESPONSIBILITY

s an expert in the energy sec- tor, at Gasum we offer unique opportunities for top talents CREATING A Aand also train our employees for roles for which you cannot prepare at school. For us competence development is a sustained process based on our stra- NEW GASUM tegic objectives. The key issue here is to identify those competence areas that are With our new business functions we are creating a required from us in the future: manage- new kind of workplace community and work culture. ment and leadership, business econom- ics, technology relating to new business We are united by our values and an understanding functions, and agility and the capacity for of the direction we are heading as a company. a speedy response.

36 A CLEANER TOMORROW CORPORATE RESPONSIBILITY

The year 2016 brought us new co-workers and new top talents.

TRAINING PROVIDED BY WORK CULTURES er’s wellbeing, and our workplace com- GASUM ACADEMY BEING FUSED munity is founded on the principle of All of our training was brought under the In the new international Gasum, years of non-discrimination and equality. same roof, Gasum Academy, during the experience and new work cultures and Wellbeing in our workplace com- year. As part of the Gasum Academy train- language brought in by new people are munity is supported by tools such as ing provision, we launched a major train- now being fused. Our workplace commu- our shared morning sessions, newslet- ing and development program focusing nity is heterogeneous – with young peo- ters, participatory intranet, the CEO’s on management and leadership. Develop- ple as well as experienced staff members and senior executives’ roadshow, and ment in personnel competencies is meas- who have made a long career in the Nor- the entire personnel’s annual training ured using indicators such as the number dic countries. All of us share a high level day. of training days. Competence develop- of commitment and an experience of our In 2016 our growing company re- ment also takes place through regular as- work being meaningful – of being able to cruited a significant number of new sessments and employee-management generate good things through our work. employees, and new people also discussions. It is vital for a player with a crit- Our workplace community is friendly, joined us due to business acquisitions. ical role in society to continuously maintain open and happy to welcome new opin- Our new co-workers have given us a a specific number of employees capable ions. We stand behind our cause and our chance to learn our new business. of response in situations of responsibility. story. We take responsibility for each oth-

GASUM’S YEAR 2016 37 CORPORATE RESPONSIBILITY

Skangas BRAVE OUTLOOK is a safe employer and we have shared objectives. ENJOYED BY It’s inspiring to work in a company that operates internationally. NEW GASUM SOLA TERESE, ADMINISTRATION COORDINATOR, LNG, EMPLOYEES NORWAY

I enjoy the The opportunity team spirit, with to work in a new operating new people being environment with new people and processes. I enjoy making things happen given a warm and and the feeling of success as a team. helpful welcome. These create a positive cycle. JOONAS JUURA, Gasum has competent people who are committed to PLANT GROUP MANAGER, their work and really want to do their best. BIOGAS, FINLAND TEEMU LOIKKANEN, DEVELOPMENT MANAGER, TECHNICAL SERVICES, FINLAND

38 A CLEANER TOMORROW CORPORATE RESPONSIBILITY

Doing things together is how we operate. What’s great It’s nice to go to work in a team about Gasum is that you feel you belong to. the determined and TUOMAS KUISMA, INVOICING, FINANCE, brave attitude in moving FINLAND forward and growing from Southern Finland to the Nordic countries ESA PARKKO, PRODUCTION GASUM EMPLOYEE Our PLANNING ENGINEER, BIOGAS OF THE YEAR work culture FINLAND is ambitious, ”I FIRST STARTED AT GASUM as a ma- ternity leave cover in 1998. I’ve had a I’ve felt welcome adaptable, and chance to see our operations from many from the very beginning. different perspectives in several depart- professional. The workplace community at ments. I value Gasum’s investments in HALVAR ROMMETVEDT, Gasum is encouraging and people human resource development, and I’ve KEY ACCOUNT MANAGER, are always ready to help. also had the opportunity to develop my LNG, NORWAY own competencies in diverse tasks. I’ve noticed that Gasum The most rewarding thing about my job in human resource de- employees are genuinely velopment was working with interested in their tasks and a variety of people. You never get bored as you have to keep up committed to their work. with the changing world and also Gasum is develop accordingly. Every change is AMANDA VAINIO, determined to develop an opportunity. I got new challenges ANALYST, in a changing operating NATURAL GAS, and can keep up my own competen- environment and not stuck in old ways. FINLAND cies in HSE and strategy department. Gasum’s excellent group of people, hu- We’re involved in the efforts mor and great team spirit have been the to solve societal challenges. spices of my work. MIA KOSKINEN, COORDINATOR, ROOSA JAAKKOLA, HSE, STRATEGY, SUSTAINABILITY EXPERT, STRATEGY, FINLAND FINLAND

GASUM’S YEAR 2016 39 MANAGEMENT

GASUM MANAGEMENT TEAM (GMT) JANUARY 1, 2017

JOHANNA JOUNI JUKKA TOR MORTEN JARKO LAMMINEN HAIKARAINEN METSÄLÄ OSMUNDSEN ALANKO

• Born 1966 • Born 1965 • Born 1979 • Born 1959 • Born 1965 • Chief Executive Officer • Senior Vice President, • Vice President, • Vice President, LNG • Vice President, • D.Sc (Tech.), MBA Natural Gas Biogas Chief Executive Technical Services • Employed by Gasum • M.Sc (Tech.) • M.Sc (Tech.), MBA Officer of Skangas • M.Sc (Tech.) since 2013 • Employed by Gasum • Employed by Gasum • Master of Manage- • Employed by Gasum • Chairman of the since 2015 since 2014 ment and Business since 1995 Skangas Board of • Employed by Directors Skangas since 2013 • Member of the Board and member of Audit Committee of Evli Bank Oyj since 2015 • Member of the Board and member of Audit and Risk Committee of Tieto Oyj since 2016 • Member of the Board of the Chemical Industry Federation of Finland since 2014 • Member of the Board of the Finnish Foundation for Technology Promotion since 2014

40 A CLEANER TOMORROW MANAGEMENT

JUHA OLGA KRISTIINA LASSE HÄKÄMIES VÄISÄNEN VUORI AARNIO

• Born 1970 • Born 1977 • Born 1970 • Born 1962 • Vice President, • Vice President, • Vice President, • CFO Strategy Communications Legal Affairs & HR • M.Sc (Econ.) • Lic.Sc (Tech.) • M.Sc (Econ.) • LL.M. (Helsinki), LL.M • Employed by Gasum • Employed by Gasum • Employed by Gasum (London), Trained at since 2015 since 2016 since 2011 the Bench • Employed by Gasum since 2005

GASUM’S YEAR 2016 41 MANAGEMENT

BOARD OF DIRECTORS

JUHA TIMO CHARLOTTE PÄIVI JARMO RANTANEN KOPONEN LOID PESOLA VÄISÄNEN

• Born 1952 • Born 1969 • Born 1957 • Born 1956 • Born 1951 • M.Sc (Econ.), MBA • M.Sc (Econ.) • M.Sc (Chem. Eng) • M.Sc (Business Econ.) • Lic.Sc (Pol.)

• Chair of the Gasum • Member of the • Member of the • Member of the • Member of the Board of Directors Gasum Board of Gasum Board of Gasum Board of Gasum Board of since March 1, 2016 Directors since 1st of Directors since 1st of Directors since 1st of Directors since 1st of March 2016 March 2016 March 2016 March 2016

42 A CLEANER TOMORROW GASUM’S YEAR 2016

PUBLISHER Gasum Ltd P.O. Box 21, Miestentie 1, 02151 Espoo, Finland

EDITOR-IN-CHIEF anna.ailio@gasum.fi

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Photography Tomi Parkkonen, Gasum Ltd, Shutterstock

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AVAILABLE ONLINE AT www.gasum.com

ADDRESS SOURCE Gasum’s customer and stakeholder data file

A CLEANER TOMORROW GASUM’S GASUM’S GASUM’S YEAR FINANCIAL STATEMENTS CORPORATE RESPONSIBILITY The energy company Gasum is a Finnish gas sector (natural gas and biogas) expert that is building a bridge to a carbon-neutral society on land and at sea. Gasum contributes to the creation of a sustainable energy economy by increasing the supply of biogas, developing the Nordic gas ecosystem and ensuring the price competitiveness of gas. Gasum imports natural gas to Finland, products and upgrades biogas in Finland and Sweden and transmits and delivers these for energy production, industry, homes, and land and maritime transport. Gasum is Nordic’s leading supplier of biogas. The Gasum subsidiary Skangas is the leading Nordic expert in liquefied natural gas (LNG) that will continue to strengthen the position and infrastructure of LNG and the utilization of new gas solutions in Finland, Sweden and Norway. The Gasum Group has around 400 employees in Finland, Norway and Sweden.

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