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Fortum Sustainability 2020

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Fortum Sustainability 2020 Sustainability 2020 SUSTAINABILITY AT FORTUM CLIMATE AND RESOURCES PERSONNEL AND SOCIETY APPENDICES 2 Highlights 2020 New, ambitious safety target Coal-exit proceeding well; Employee engagement measured as TRIF* for own Uniper coal-fired power plant increased; personnel feels well personnel and contractors Heyden 4 taken out informed and supported during of commercial power the Covid-19 pandemic <1.0 generation at the end of 2020 by the end of 2025 * Total Recordable Injury Frequency Annual outage at Loviisa nuclear Increased capacity and power plant successfully competence in EV battery completed, with nearly 1,500 recycling workers from 10 different countries and no Covid-19 cases Uniper transaction successfully New corporate strategy New Corporate Social Up to completed and Uniper included as released; a Group-wide carbon Responsibility a subsidiary in Fortum’s reporting neutrality target, in line with programme launched the goals of the Paris Agreement, with strategic focus 70% by 2050 at the latest of new growth investments in 2021–2025 targeted at solar and wind power as well as hydrogen SUSTAINABILITY AT FORTUM CLIMATE AND RESOURCES PERSONNEL AND SOCIETY APPENDICES 3 Sustainability 2020 Highlights 2020 �����������������������������������������������������������������������������������������������2 Personnel and society ...........................................................................................53 Notes: Table of contents ������������������������������������������������������������������������������������������������������������3 Personnel ���������������������������������������������������������������������������������������������������������������������� 55 • Fortum’s TCFD report for 2020 is included in the section Safety and security ����������������������������������������������������������������������������������������������������� 62 Climate, pages: 29–38 and in Financials 2020, Sustainability at Fortum .......................................................................................... 4 Human rights ��������������������������������������������������������������������������������������������������������������� 67 pages: 21–24 and 34–35. Year 2020 in short ���������������������������������������������������������������������������������������������������������5 Stakeholders ���������������������������������������������������������������������������������������������������������������� 69 • Fortum’s Non-Financial Information report is included Strategy and carbon roadmap �������������������������������������������������������������������������������������7 Customers �������������������������������������������������������������������������������������������������������������������� 77 in the Financials 2020, pages: 10 and 21–26 We support the SDGs ������������������������������������������������������������������������������������������������ 11 Corporate citizenship ������������������������������������������������������������������������������������������������� 79 • To make this Sustainability Report fully web accessible, Sustainability priorities ���������������������������������������������������������������������������������������������� 16 Supply chain ����������������������������������������������������������������������������������������������������������������� 83 Fortum has aligned all its visuals with the Web Accessibility Reporting principles ���������������������������������������������������������������������������������������������������� 18 Directive, (EU) 2016/2102. This allows also people with Business ethics and compliance ������������������������������������������������������������������������������� 20 Appendices ............................................................................................................86 disabilities to perceive, understand, and navigate through Governance and management ���������������������������������������������������������������������������������� 86 the report. Climate and resources ...........................................................................................22 Policies and commitments ����������������������������������������������������������������������������������������� 90 Energy ��������������������������������������������������������������������������������������������������������������������������� 24 Reported GRI disclosures ������������������������������������������������������������������������������������������� 92 Climate �������������������������������������������������������������������������������������������������������������������������� 29 Limited assurance report on GHG emissions ��������������������������������������������������������� 95 Emissions ���������������������������������������������������������������������������������������������������������������������� 39 Water����������������������������������������������������������������������������������������������������������������������������� 41 Biodiversity ������������������������������������������������������������������������������������������������������������������� 45 Circular economy ��������������������������������������������������������������������������������������������������������� 48 Fortum’s 2020 reporting entity CEO’s Business Review 2020 Financials 2020 Governance 2020 Remuneration 2020 Tax Footprint 2020 Sustainability 2020 CEO’s Business Review Financials Governance Remuneration Tax Footprint Sustainability SUSTAINABILITY AT FORTUM CLIMATE AND RESOURCES PERSONNEL AND SOCIETY APPENDICES 4 Sustainability at Fortum The entire energy sector is undergoing a transformation and Fortum is an integral part of this change� The faster pace of climate change is accelerating the need for structural changes in society� Sustainability is at the core of Fortum’s strategy� Together with Uniper, we as Fortum Group are now the third largest producer of CO2-free electricity in Europe and a significant gas company� We have the scale, competence and resources to grow further and drive the energy transition towards a carbon-neutral economy� To be successful, the transition must balance sustainability, affordability and security of supply� This requires renewables, but also increasingly clean hydrogen, energy storage, and other flexible solutions. As greenhouse gas emissions need to be reduced in all sectors, not just in energy, we provide clean energy and sustainable solutions for our industrial and infrastructure customers� In addition to climate and resources, we pay close attention to the impacts of our operations on our personnel and the society around us� After the outbreak of the Covid-19 pandemic, our top priority has been to maintain business continuity and to secure the health and safety of our own and contractors’ employees� With the updated strategy, we are driving the change for a cleaner world and we wish to engage our customers and society to join this journey� 4Fortum’s strategy 4Fortum’s values 4Fortum in sustainability indices SUSTAINABILITY AT FORTUM CLIMATE AND RESOURCES PERSONNEL AND SOCIETY APPENDICES 5 Year 2020 in short Strategy and carbon roadmap We support the SDGs Sustainability priorities Reporting principles Business ethics and compliance Year 2020 in short 2020 was a year of changes at Fortum, including the consolidation of Uniper, a large German energy utility, and the launch of a new corporate strategy� Fortum consolidated Uniper as a subsidiary as of 31 March 2020. At the heart of our updated strategy is the transition to clean energy� In the exceptional conditions set by the outbreak of Covid-19, which quickly grew into a global pandemic, Fortum’s main priority was to maintain business continuity� This goal was well achieved, as there were no interruptions in Fortum’s energy production� Also, maintenance Climate and resources year 2021. Fortum aims at conducting a minimum of 12 major voluntary outages were implemented as scheduled, with careful planning and by From the sustainability point of view, year 2020 was eventful and measures that improve the living conditions of species and strengthen taking special measures to protect the health of our employees and forward-looking� Our new strategy drives the clean energy transition populations� contractors. One positive example of success was that we managed to forward� The key strategic priority is to transform our own power plants complete the annual outage at our Loviisa nuclear power plant, involving and operations to carbon neutral� We have committed to the carbon- Personnel and society a total 1,500 of our own and contractors’ employees, without a single neutral (Scope 1, 2 and 3) target globally, in line with the goals of the Together with Uniper we grew in business, but also significantly in Covid-19 case. Yet, the impact of the pandemic on our corporate ways Paris Agreement, by 2050 at the latest, and in our European generation personnel� The safety of our personnel and contractors remains our top of working has been substantial. Most of our office employees have (Scope 1 and 2) by 2035 at the latest. By 2030, Fortum will phase- priority, and we set a new, ambitious safety target� We also updated worked remotely since March 2020. We have also taken into use new out or exit about 8 GW of coal-fired power generation. We will also Fortum’s Code of Conduct and Supplier Code of Conduct� digital tools that make collaboration and remote work smoother than strengthen and grow in CO2-free power generation� Our target is to On the R&D front, Fortum took major steps
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