Sustainability 2018 Sustainability Approach Climate and Resources Personnel and Society Appendices 1

Sustainability 2018 Sustainability approach Climate and resources Personnel and society Appendices 1 Highlights 2018 Material recovery rate We arranged We paid attention to equality by joining the We implemented of waste received from Work does not discriminate hydropower environmental our customers was campaign promoting Finnish workplace projects valued at EUR 1,350 equality and the international Equal by man-hours of safety training for 30 campaign promoting gender equality 59% Fortum division management 5.9 million and other personnel responsible for safety The preliminary planning phase for The Fortum-Rusnano investment the Carbon Capture and Storage (CCS) fund has been granted the right project at Oslo’s waste incineration plant to build almost got under way; when realised, the project will capture up to 2 GW 90% of new wind power in Russia of the plant’s CO2 emissions The power upgrades at the Loviisa nuclear The electric vehicle power plant in 2016–2018 enable us to charging corridor being produce about an additional built by Fortum between Helsinki and Oslo received its first high-power charging 180 GWh stations in Norway, Sweden and Finland of CO2-free electricity Sustainability approach Climate and resources Personnel and society Appendices 2 Sustainability 2018 Highlights 2018 ��1 Personnel and society ....................................................................... 42 Fortumʼs 2018 reporting entity Table of contents �� 2 Personnel �� 44 Safety and security �� 51 Sustainability approach ...................................................................... 3 Economic impacts �� 54 Our contribution to the Sustainable Development Goals �� 4 Security of supply �� 56 CEO’s Business Review 2018 Financials 2018 Key sustainability topics �� 7 Customer responsibility and reputation ��57 Governance and management �� 10 Supply chain management �� 61 Policies and commitments ��11 Human rights �� 64 Business ethics and compliance �� 12 Corporate citizenship�� 65 CEO's Business Review Financials Stakeholders �� 14 Sustainability indices �� 18 Appendices �� 67 Appendix 1: Reporting principles ��67 Climate and resources ........................................................................ 19 Appendix 2: Reported GRI disclosures �� 69 Sustainable energy production ��22 Appendix 3: Independent limited assurance report on Governance 2018 Remuneration 2018 Climate change mitigation �� 24 Fortumʼs Greenhouse Gas Emissions 2018 ��72 Improving energy efficiency �� 29 Appendix 4: Sustainability management by topic ��73 Circular economy �� 31 Appendix 5: Fortumʼs main internal policies and instructions Biodiversity �� 35 guiding sustainability ��75 Governance Remuneration Emissions into air ��37 Water use �� 38 Contact information ..........................................................................75 Environmental non-compliances �� 41 Tax Footprint 2018 Sustainability 2018 Tax Footprint Sustainability Sustainability approach Climate and resources Personnel and society Appendices 3 Our contribution to the Business ethics and Sustainability Sustainable Development Goals Key sustainability topics Governance and management Policies and commitments compliance Stakeholders indices Sustainability approach The entire energy sector is undergoing a transformation. The faster pace of climate change is accelerating the need for structural changes in society. The need for low-carbon energy is growing because fossil fuels must be replaced in transportation, industry and heating. Clean electricity is a significant enabler in this. In fact, we believe that the 2020s will be the decade of electricity. In addition to climate change, changes in the regulatory environment and the fast pace of technological development create new challenges and opportunities for us. Our role is to respond to the changing operating environment by reshaping the energy system, improving resource efficiency and providing smart solutions. This way we deliver excellent shareholder value, minimise our adverse impacts, and ensure sustainable and low-emissions business. Sustainability is at the core of Fortum’s strategy and our values – curiosity, responsibility, integrity and respect – form the foundation for all our activities. In our operations, we give balanced consideration to climate and resource issues, as well as our impacts on personnel and society. We see sustainable energy and circular economy solutions as today’s competitive advantage and a prerequisite for business growth and success. Fortum’s vision, mission and strategy Fortum’s values Sustainability approach Climate and resources Personnel and society Appendices 4 Our contribution to the Business ethics and Sustainability Sustainable Development Goals Key sustainability topics Governance and management Policies and commitments compliance Stakeholders indices Our contribution to the Sustainable Development Goals As a producer of energy and circular economy Our contribution to the Sustainable Development Goals (SDGs) solutions, Fortum impacts most of the Sustainable Development Goals (SDGs) and their specific targets. Fortum’s strategy SDG In line with our strategy, we are driving the change 2016–2018 1) Fortum takes care of the working conditions and safety of its own and its towards a cleaner world. contractors’ employees, and it requires service and goods suppliers to respect Drive labour rights. Fortum generates economic added value to its investors, Sustainable Development Goals and Fortum’s productivity suppliers and the public sector. and industry Group targets in safety and sickness-related absences activities transformation The Sustainable Development Goals adopted by the United Nations Fortum oers waste and circular economy solutions which promote waste recycling and reuse. Fortum impacts urban air quality by in 2015 define international sustainable development focus areas and developing charging solutions for electric vehicles and by reducing goals to 2030� We want to do our part to promote the achievement of the power plant emissions into the air. Fortum improves the energy goals in our value chain by increasing our positive impacts and Create and resource eciency of its energy production. decreasing our negative impacts� The Sustainable Development Goals solutions for offer business opportunities as well as the opportunity to create value for sustainable Fortum oers and develops new energy services for customers, cities improves the energy eciency of its production, and invests in our stakeholder groups� renewable energy, e.g. solar power in India and wind power in Russia. The graphic presents the SDGs for which we have the biggest impact Group targets in security of supply and customer satisfaction to their achievement, as well as the most important ways we contribute and our related Group sustainability targets� Fortum invests in CO2-free energy production, improves the energy eciency Fortum contributes to Sustainable Development Goals also by of its production, and develops new climate-benign energy innovations. Grow in solar Group targets in speciﬁc CO emissions and energy eciency being a member in the UN Global Compact initiative� Global Compact and wind 2 participants are committed to aligning their operations with the ten universally accepted principles in the areas of human rights, labour, the environment and anti-corruption� Fortum advances innovations related to energy, the circular economy, digitalisation and electricity storage solutions, and invests in startups. Fortum develops

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