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Sustainability highlights
Fortum is one of Europe’s cleanest power generators. Our Nordic power generation is based on carbon dioxide-free hydro and nuclear power. Sustainability is essential to Fortum’s strategy and we are committed to carbon neutrality by 2030.
Sustainability highlights 2022
- Biodiversity strategy work progressing well. Fortum mapped its own and its value chain’s dependencies and impacts on biodiversity and ecosystem services to define its biodiversity footprint.
- Safety remains Fortum’s top priority: Safety Culture Programme launched, including trainings, webinars and workshops for all organisational levels.
- Investment in personnel mental wellbeing in the exceptional conditions: opportunities for personal meetings with a wellbeing professional, coaching sessions and more.
- Collaboration to mitigate climate change: Fortum and Microsoft announced world’s largest collaboration to provide sustainable waste heat from new data centre region.
- Fortum ranked best among large companies in the Helsinki Nasdaq category in the Nordic Business Diversity Index.
- In February 2023, the Finnish Government granted a new operating license for both units at Fortum’s Loviisa nuclear power plant until the end of 2050. Loviisa power plant produces about 10% of the electricity used in Finland.
Ambitious environmental targets
In March 2023, Fortum announced considerably enhanced environmental targets. Fortum targets carbon neutrality (Scopes 1, 2, 3) by 2030 and will exit all coal generation by the end of 2027. We will also commit to set emission reduction targets based on climate science (SBTi 1.5°C). Fortum is also committing to ambitious biodiversity targets. Read about our Sustainability targets.
Frequently asked questions
What are Fortum’s new sustainability targets?
Our strategic focus areas are delivering reliable clean energy and driving decarbonisation and growth in Nordic industries. The strategy forms a basis for even more ambitious sustainability work.
Fortum targets carbon neutrality by 2030 and will exit all coal generation by the end of 2027. We are also committed to reduction targets based on climate science (SBTi 1.5°C) and have set ambitious biodiversity targets. (More about biodiversity targets in question 3. )
We want to be known as a company that cares about the people and communities around us and in our supply chains. We measure this work with our safety targets and our commitment to drive a just energy transition.
We report on the progress of this work and we share examples of our actions during the year on our web pages and in Fortum’s other channels. Link to Sustainability targets.
What progress are you making in reducing emissions and increasing renewable energy?
We are one of Europe’s cleanest power generators today. Almost 90% of the Group’s EBITDA (year 2022 excluding Russian operations) originates from the company’s Nordic power generation, which is based on CO2-free hydro and nuclear power. In 2022, 97% of Fortum’s power generation in Europe and 59% globally was CO2-free.
The Espoo Clean Heat project is transforming the district heating in the City of Espoo in Finland to be carbon neutral by 2029.
In accordance with our new strategy, we are growing in wind and solar power in the Nordic countries. We are developing new wind power of over 1100 MW in the Nordic countries and we have wind power projects in various stages of approval. Regarding solar power, we are actively looking for suitable project development areas in the Nordic countries. Together with Helen, we are currently building Finland's third largest wind farm in Närpiö and Kristiinankaupunki. Together with Helen, the investment of the Pjelax wind farm is 360 million euros.
In addition, the refurbishments of Fortum’s own hydropower plants in Sweden and Finland have increased renewable electricity production capacity.
What are Fortum’s biodiversity targets?
We target no net loss of terrestial biodiversity from existing and new operations in Scopes 1 and 2 from 2030 onwards.
However, with the science-based model we use, the effects of hydropower on the biodiversity of water bodies cannot be comprehensively measured for the time being. Hence we are committed to continue local initiatives and develop science-based methodology with partners to assess the aquatic impacts of hydropower during 2023.
We will also reduce harmful impacts on terrestrial biodiversity in the upstream of the value chain (Scope 3) by 50 per cent by the year 2030 (base year 2021).
Climate change is one of the largest threats to biodiversity, hence measures preventing climate change such as abandoning fossil fuels will reduce our overall impact on biodiversity.
Why doesn't Fortum build natural fishways at all hydropower plants?
The functionality of different types of fishways and their impact on fish stocks is not self-evident. Every river and power plant has different conditions. Fortum wants to find the optimal solution at each site for the development of fisheries. Enabling the passage of fish at dams is only one part of an effective migratory fish solution. Restoring migratory fish stocks is a long-term effort and must be done in stages.
Our hydropower plants in Finland are located in Oulujoki and Vuoksi. In both water systems, we aim to improve the natural cycle of migratory fish where, research indicates the conditions for it exist.
How does Fortum take care of the wellbeing of its employees?
Work safety continues to be our highest priority. We are currently running, an extensive leadership training programme built on personal insights on what each of us can do to promote a common work safety culture in a positive way, rather than just focusing on preventing accidents.
Exceptional conditions in 2022 posed challenges to personnel wellbeing. We paid special attention to mental wellbeing in 2022 by, for example, providing conversational support and coaching opportunities.
How is sustainability taken into account when rewarding management?
Fortum’s long-term incentive (LTI) programme for management includes an ESG target. In the 2023–2025 LTI plan, the ESG target is linked to emission reduction targets based on climate science (SBTi 1.5°C) and related to emissions in Europe, as well as Fortum’s reputation index development among key stakeholders. The relative TSR measured against a peer group of European utilities, remains one of the metrics in the plan.
Fortum’s short-term incentive (STI) programme, applicable to all employees, includes safety as one element. In the 2023 STI programme, the safety target includes participation in the Management Safety and Security Leadership Programme as well as identification and completion of key safety actions to improve safety culture.