iso4217:EURiso4217:EURxbrli:shares635400IUIZZIUJSAMF762024-01-012024-12-31635400IUIZZIUJSAMF762023-01-012023-12-31635400IUIZZIUJSAMF762024-12-31635400IUIZZIUJSAMF762023-12-31635400IUIZZIUJSAMF762023-12-31ifrs-full:IssuedCapitalMember635400IUIZZIUJSAMF762023-12-31ifrs-full:SharePremiumMember635400IUIZZIUJSAMF762023-12-31fort:RetainedEarningsAndOtherFundsMember635400IUIZZIUJSAMF762023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember635400IUIZZIUJSAMF762023-12-31ifrs-full:ReserveOfCashFlowHedgesMember635400IUIZZIUJSAMF762023-12-31ifrs-full:AccumulatedOtherComprehensiveIncomeMember635400IUIZZIUJSAMF762023-12-31fort:OtherComprehensiveIncomeAssociatesAndJointVenturesMember635400IUIZZIUJSAMF762023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember635400IUIZZIUJSAMF762023-12-31ifrs-full:NoncontrollingInterestsMember635400IUIZZIUJSAMF762024-01-012024-12-31ifrs-full:IssuedCapitalMember635400IUIZZIUJSAMF762024-01-012024-12-31ifrs-full:SharePremiumMember635400IUIZZIUJSAMF762024-01-012024-12-31fort:RetainedEarningsAndOtherFundsMember635400IUIZZIUJSAMF762024-01-012024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember635400IUIZZIUJSAMF762024-01-012024-12-31ifrs-full:ReserveOfCashFlowHedgesMember635400IUIZZIUJSAMF762024-01-012024-12-31ifrs-full:AccumulatedOtherComprehensiveIncomeMember635400IUIZZIUJSAMF762024-01-012024-12-31fort:OtherComprehensiveIncomeAssociatesAndJointVenturesMember635400IUIZZIUJSAMF762024-01-012024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember635400IUIZZIUJSAMF762024-01-012024-12-31ifrs-full:NoncontrollingInterestsMember635400IUIZZIUJSAMF762024-12-31ifrs-full:IssuedCapitalMember635400IUIZZIUJSAMF762024-12-31ifrs-full:SharePremiumMember635400IUIZZIUJSAMF762024-12-31fort:RetainedEarningsAndOtherFundsMember635400IUIZZIUJSAMF762024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember635400IUIZZIUJSAMF762024-12-31ifrs-full:ReserveOfCashFlowHedgesMember635400IUIZZIUJSAMF762024-12-31ifrs-full:AccumulatedOtherComprehensiveIncomeMember635400IUIZZIUJSAMF762024-12-31fort:OtherComprehensiveIncomeAssociatesAndJointVenturesMember635400IUIZZIUJSAMF762024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember635400IUIZZIUJSAMF762024-12-31ifrs-full:NoncontrollingInterestsMember635400IUIZZIUJSAMF762022-12-31ifrs-full:IssuedCapitalMember635400IUIZZIUJSAMF762022-12-31ifrs-full:SharePremiumMember635400IUIZZIUJSAMF762022-12-31fort:RetainedEarningsAndOtherFundsMember635400IUIZZIUJSAMF762022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember635400IUIZZIUJSAMF762022-12-31ifrs-full:ReserveOfCashFlowHedgesMember635400IUIZZIUJSAMF762022-12-31ifrs-full:AccumulatedOtherComprehensiveIncomeMember635400IUIZZIUJSAMF762022-12-31fort:OtherComprehensiveIncomeAssociatesAndJointVenturesMember635400IUIZZIUJSAMF762022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember635400IUIZZIUJSAMF762022-12-31ifrs-full:NoncontrollingInterestsMember635400IUIZZIUJSAMF762022-12-31635400IUIZZIUJSAMF762023-01-012023-12-31ifrs-full:IssuedCapitalMember635400IUIZZIUJSAMF762023-01-012023-12-31ifrs-full:SharePremiumMember635400IUIZZIUJSAMF762023-01-012023-12-31fort:RetainedEarningsAndOtherFundsMember635400IUIZZIUJSAMF762023-01-012023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember635400IUIZZIUJSAMF762023-01-012023-12-31ifrs-full:ReserveOfCashFlowHedgesMember635400IUIZZIUJSAMF762023-01-012023-12-31ifrs-full:AccumulatedOtherComprehensiveIncomeMember635400IUIZZIUJSAMF762023-01-012023-12-31fort:OtherComprehensiveIncomeAssociatesAndJointVenturesMember635400IUIZZIUJSAMF762023-01-012023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember635400IUIZZIUJSAMF762023-01-012023-12-31ifrs-full:NoncontrollingInterestsMember635400IUIZZIUJSAMF762022-01-012022-12-31635400IUIZZIUJSAMF762024-12-31fort:GreenLoanMember635400IUIZZIUJSAMF762024-12-31fort:BankLoanMember635400IUIZZIUJSAMF762024-01-012024-12-31fort:BankLoanMember635400IUIZZIUJSAMF762023-01-012023-12-31fort:UniperMember
1
Financial statements and
operating and financial
review 2024
Fortum Oyj
Business ID: 1463611-4
This ESEF report is a translation and has been published voluntarily.
1
Table of contents
OPERATING AND FINANCIAL REVIEW
Financial performance and position ..............................................
Risk management ...........................................................................
Fortum share and shareholders ....................................................
1 General information .....................................................................
2 Environmental sustainability ......................................................
3 Social sustainability .....................................................................
4 Business conduct ........................................................................
5 Content indices ............................................................................
FINANCIAL STATEMENTS
Consolidated income statement ...................................................
Consolidated balance sheet ..........................................................
Consolidated cash flow statement ................................................
Notes to the consolidated financial statements
1 Material accounting policies .......................................................
4 Financial risk management .........................................................
5 Capital risk management ............................................................
6 Segment reporting ......................................................................
8 Other expenses ...........................................................................
9 Materials and services ................................................................
11 Finance costs – net ....................................................................
12 Income tax expense ...................................................................
13 Earnings and dividend per share ..............................................
14 Additional cash flow information ..............................................
17 Intangible assets ........................................................................
20 Impairment testing ....................................................................
21 Other non-current assets ..........................................................
22 Interest-bearing receivables .....................................................
23 Inventories .................................................................................
24 Trade and other receivables .....................................................
25 Liquid funds ...............................................................................
173
26 Share capital ..............................................................................
27 Interest-bearing liabilities .........................................................
28 Income taxes on the balance sheet .........................................
29 Nuclear-related assets and liabilities .......................................
30 Other provisions ........................................................................
31 Pension obligations ....................................................................
32 Other non-current liabilities ......................................................
33 Trade and other payables .........................................................
34 Leases ........................................................................................
35 Capital and other commitments ...............................................
36 Pledged assets and contingent liabilities ................................
37 Legal actions and official proceedings ....................................
38 Related party transactions .......................................................
39 Events after the balance sheet date ........................................
40 Group companies by segment .................................................
Key figures
Financial key figures .......................................................................
Share key figures ............................................................................
Sustainability key figures ...............................................................
Segment key figures .......................................................................
Definitions and reconciliations of key figures ..............................
Parent company financial statements
Income statement ..........................................................................
Balance sheet ..................................................................................
Cash flow statement ......................................................................
Notes ...............................................................................................
Auditor’s report ..............................................................................
Auditor's limited assurance report of the Sustainability
statement .......................................................................................
2
Operating and
financial review
Financial performance and position
Good generation optimisation in warm, wet and windy conditions in 2024
Key figures
Key figures, continuing operations
EUR million or as indicated
2024
2023
2022
Reported
Sales
5,800
6,711
7,774
Operating profit
1,325
1,662
1,967
- of sales %
22.8
24.8
25.3
Share of profit/loss of associates and joint ventures
19
59
-185
Profit before income tax
1,399
1,583
1,564
- of sales %
24.1
23.6
20.1
Net profit
1,160
1,515
2,084
Net profit (after non-controlling interests)
1,164
1,514
2,080
Earnings per share, EUR
1.30
1.68
2.34
Net cash from operating activities
1,392
1,710
1,717
EUR million or as indicated
2024
2023
2022
Comparable
EBITDA
1,556
1,903
2,025
Operating profit
1,178
1,544
1,611
Share of profit of associates and joint ventures
-30
7
-40
Net profit (after non-controlling interests)
900
1,150
1,076
Earnings per share, EUR
1.00
1.28
1.21
EUR million or as indicated
2024
2023
2022
Financial position
Financial net debt
367
942
1,084
Financial net debt excl. Russia
N/A
N/A
1,127
Financial net debt/comparable EBITDA
0.2
0.5
0.6
1)
1) 'Financial net debt/comparable EBITDA, excl. Russia' as presented in the consolidated financial statements 2022.
Key figures, total of continuing and discontinued operations
Fortum’s consolidated income statement and consolidated cash flow statement include the
Russia segment as discontinued operations in 2023 and 2022, and the Uniper segment as
discontinued operations in 2022. Control over Fortum’s Russian operations was lost in April 2023
and control of Uniper was lost in September 2022. Consequently, the segments were
deconsolidated and classified as discontinued operations in 2023 and 2022 respectively. See
Note 1, Note 2 and Note 3.
EUR million or as indicated
2024
2023
2022
Reported
Net profit (after non-controlling interests)
1,164
-2,069
-2,416
Earnings per share, EUR
1.30
-2.31
-2.72
Net cash from operating activities
1,392
1,819
-8,767
Comparable
Net profit (after non-controlling interests)
900
1,184
-988
Earnings per share, EUR
1.00
1.32
-1.11
EUR million or as indicated
2024
2023
2022
Shareholders’ equity per share, EUR
10.11
9.40
8.55
Return on shareholders' equity, %
13.1
-25.5
-96.2
Equity-to-assets ratio, %
53
45
33
See Definitions and reconciliations of key figures.
For Fortum, 2024 was a year dedicated to focusing on our core businesses, optimising our best-
in-class operations, divesting non-core operations, and implementing efficiency improvement
actions. With these measures, among others, we are building the foundation of preparedness for
our future growth. We continue to see robust underlying customer demand which we believe
reflects the power demand growth longer term. Our goal is to be ready for the growth phase
while ensuring strong financial performance, even in a turbulent operating environment.
In 2024, the power market was characterised by volatile but lower power prices compared to the
previous year. The cold start to 2024 gave the Nordic spot price a strong beginning to the year,
particularly in Finland, with extreme hourly price spikes reaching close to 1,900 EUR/MWh
during the first quarter. However, after the first quarter, the high share of onshore wind power
and high hydro inflows pressured the Nordic spot prices until the end of the year. In the fourth
quarter, Nordic spot prices were lower than a year ago due to the significantly higher reservoir
levels, increased renewable power output and warm weather. This was partly offset by the
ongoing recovery in Nordic power demand, especially as non-industrial demand increased
in 2024.
3
The lower Nordic spot power prices were reflected especially in our Generation segment’s
financial results throughout the year. However, due to our versatile and competitive CO2-free
fleet, our achieved power price reached a good level in 2024 through successful hedging and
physical optimisation. The result improved in the Consumer Solutions and Other Operations
segments for the full-year 2024.
Supported by the divestment of our recycling and waste business, our financial position
continues to be strong with very low leverage of 0.2 times and we continued to have sufficient
liquidity and credit line buffers at the end of the year. During 2024, we were happy to have S&P
Global Ratings upgrade our long-term credit rating to BBB+ with Stable Outlook and Fitch
Ratings affirm our long-term rating of BBB with Stable Outlook. We also introduced our Green
Finance Framework and signed our first green loan in June.
Based on our Group results and strong financial position, Fortum’s Board of Directors is
proposing to the Annual General Meeting a dividend of EUR 1.40 per share comprising EUR 0.90
corresponding to a 90% payout of comparable EPS and a special dividend of EUR 0.50. In
Fortum’s dividend policy, the payout ratio is 60–90% of the Group’s comparable EPS. In
situations with strong balance sheet and low investments, Fortum applies the upper end of the
range of the payout ratio. Through the proposed special dividend Fortum activates its balance
sheet and rectifies its current very strong liquidity position. Adding the proposed dividend
payment to the net debt-to-comparable EBITDA at the end of 2024, it would be above 1.0 time.
In February 2024, we clarified our strategic focus and targets in response to the changed
operating environment. At the core of our strategy is our commitment to the clean transition.
Throughout 2024, we worked on our science-based climate targets to have them validated by
the international Science Based Targets initiative (SBTi). In January 2025, we were excited to
introduce our ambitious SBTi-verified targets, which include net-zero greenhouse gas emissions
across our value chain by 2040 and an 85% reduction in scope 1 and 2 emissions by 2030. Our
coal exit target by the end of 2027, as well as our targets for specific emissions and biodiversity,
remain unchanged.
Regarding our strategic key performance indicators (KPIs) set in 2024, our optimisation premium
reached 8.7 EUR/MWh in 2024, thus slightly exceeding our annual target of 6–8 EUR/MWh. We
met our long-term hydro availability KPI but fell short of our long-term nuclear availability target
due to unplanned and extended outages during the year. We are on track to reach our targets
for the hedged share of our rolling 10-year outright generation volume and the ready-to-build
pipeline for solar and onshore wind. Regarding the latter, we have an approximately 5–GW
pipeline of onshore wind and solar projects in the permit process across the Nordic countries,
with more in early development. The pipeline includes the development portfolio acquisition
announced in December 2024.
On our strategic priority to deliver reliable and clean energy, in 2024 we focused on our core
operations for power generation and advanced several significant projects to better meet the
needs of the system, society and our customers. At the Loviisa nuclear power plant, the lifetime
extension until 2050 progressed well with our decisions to modernise the low-pressure turbines
and renew the main seawater pumps. We also reached an important milestone in securing a
reliable Western alternative for our nuclear fuel supply as we loaded the first batch of
Westinghouse fuel to Loviisa in August. The Espoo Clean Heat programme is making significant
progress at the Espoo and Kirkkonummi sites with future waste heat offtake from the upcoming
Microsoft data centres and at the electricity-based plant in Nuijala, Espoo. As part of the
programme, we closed down our last coal-fired unit used for district heat production in Finland,
one year ahead of schedule. In our renewables business, our Pjelax wind farm, the third-largest
in Finland, was fully commissioned in the second quarter and began its commercial operations
through the power purchase agreement (PPA) with Finnish Helen at the beginning of July. In the
fourth quarter, we made the decision to invest EUR 100 million in decarbonisation of our
Czestochowa CHP plant in Poland.
On our strategic priority to drive decarbonisation in industries, we started to develop several
potential sites across Finland that can be offered to our customers for data centre or industrial
use. On one of these sites, in Rauma, we started to develop a site for a sustainable synthetic
aviation fuel (eSAF) plant together with Norsk e-Fuel and Port of Rauma. In the fourth quarter,
we took on the role as energy partner to support a feasibility study exploring low-carbon
aluminium manufacturing opportunities in Kokkola and Kruunupyy, Finland. The facility, if
realised, would consume approximately 7 TWh of electricity annually. Additionally, we began to
build a 2-MW hydrogen pilot production plant in Loviisa.
Within the scope of our strategic priority to transform and develop, we continued our
efficiency improvement programme with the target to gradually lower annual fixed costs by
EUR 100 million (excluding inflation) by the end of 2025 with a full run-rate from the beginning
of 2026. In 2024, we reduced our recurring fixed cost base by more than EUR 60 million.
Simultaneously, we have taken actions with fixed cost effects to build our preparedness for
future growth, such as the renewables development and site development. Also, the strategic
review of the Circular Solutions’ businesses progressed well during 2024. The recycling and
waste business, the turbine and generator services and the biobased solutions business were
divested. The total consideration for the sale of the recycling and waste business amounted to
approximately EUR 800 million, and Fortum recorded a tax-exempt capital gain of EUR 176
million. In addition, Fortum successfully divested its stake in the 185-MW solar portfolio in
India in 2024.
There have been public discussions about possible new nuclear projects both in Sweden and
Finland. At Fortum, we see that the electrification of industry and transport, as well as new clean
industrial investments, require a balance of different types of power and predictability in the
coming decades. As the share of production with intermittent renewables increases, hydro
power has a vital role in balancing the energy system in the Nordics. A flexible system, however,
needs a stable foundation, which nuclear power provides. Fortum is concluding its two-year
feasibility study to explore prerequisites for new nuclear power in the near term. Regarding the
economic conditions for new nuclear, we have previously noted that the current energy prices in
4
the Nordics do not facilitate profitable investments without societal participation. At Fortum, we
consider it positive that the Swedish and Finnish governments are investigating financing and
electricity market mechanisms for new nuclear power projects. However, we are still far from
making any potential investment decisions. As announced today, we are starting a feasibility
study to explore possibilities for flexible pumped-storage hydro power in Sweden to provide
much needed flexible balancing power.
Fortum’s strategy
Fortum’s strategy, launched in March 2023, focuses on the Nordics with strategic priorities to
‘deliver reliable clean energy’, ‘drive decarbonisation in industries’, and ‘transform and develop’.
At the beginning of February 2024, the Board of Directors resolved on clarifications to the
strategy.
The Group's business portfolio is built on its core operations – hydro and nuclear generation,
flexibility and optimisation, as well as its customer business and heating and cooling operations.
Fortum's objective is to strengthen and selectively grow these core businesses and competence
areas, while capitalising on the volatile markets. Simultaneously, to build preparedness for future
growth, Fortum is developing a ready-to-build pipeline of onshore wind and solar projects to
serve customer demand growth with long-term power purchase agreements. In addition, the
Group is exploring future development opportunities for, among others, clean hydrogen.
As the operating environment shows increased uncertainty, reduced visibility and
postponement of industrial investments, the company specified its business portfolio, clarified
capital allocation and set new strategic targets with measurable key performance indicators
(KPIs).
Financial and environmental targets
• To ensure a credit rating of at least BBB, Financial net debt-to-comparable EBITDA can be a
maximum of 2.0–2.5 times. S&P Global Ratings currently rates Fortum as BBB+ with Stable
Outlook and Fitch Ratings as BBB with Stable Outlook.
• For the 2025–2027 period, Fortum’s capital expenditure is expected to be approximately EUR
1.4 billion (excluding acquisitions), of which annual growth capital expenditure is expected to
be EUR 150–300 million and annual maintenance capital expenditure EUR 250 million.
• To ensure the required returns for any potential new investments, Fortum continues to be
selective and applies set investment criteria: project-based WACC + 150–400 investment
hurdles depending on the technology or investment project, as well as environmental targets. 
• Fortum’s dividend policy is a payout ratio of 60–90% of comparable EPS. The payout ratio will
be used so that the upper end of the pay-out ratio range is applied in situations with a strong
balance sheet and low investments, while the lower end of the range is applied in situations
with high leverage and/or significant investments and high capital expenditure. 
• Fortum targets to reduce its annual fixed costs by EUR 100 million (excluding inflation)
gradually until the end of 2025 with a full run-rate from the beginning of 2026. The programme
is progressing according to plan and schedule.
• Fortum has set ambitious environmental and decarbonisation goals with SBTi-validated
climate targets, including net-zero greenhouse gas emissions across the value chain by 2040,
coal exit by the end of 2027, targets for specific emissions and biodiversity targets. See
section 2.2 Climate change.
Strategic targets, KPIs and 2024 outcomes
Strategic target
Strengthen Nordic
leadership
Ensure value
creation from
flexibility
Stabilise income
streams
Demand-driven
renewables
KPI target
Fleet availability:
>90% for nuclear,
>95% for hydro
Annual optimisation
premium 6–8 EUR/
MWh
Hedged share of
rolling 10-year
outright generation
volume >20% by end
of 2026
Ready-to-build
pipeline for solar and
onshore wind >800
MW by end of 2026
2024 outcome
84% for nuclear, 97%
for hydro
8.7 EUR/MWh
18%
0 MW
5
Financial results
Sales by segment
EUR million
2024
2023
Generation
3,795
4,420
Consumer Solutions
3,073
3,766
Other Operations
596
548
Netting of Nord Pool transactions 1)
-1,196
-1,510
Eliminations
-469
-514
Total continuing operations
5,800
6,711
1)Sales and purchases with Nord Pool Spot are netted at Group level on an hourly basis and posted either as revenue or
cost depending on whether Fortum is a net seller or net buyer during any particular hour.
Comparable EBITDA by segment
EUR million
2024
2023
Generation
1,421
1,874
Consumer Solutions
161
108
Other Operations
-26
-80
Total continuing operations
1,556
1,903
Comparable operating profit by segment
EUR million
2024
2023
Generation
1,218
1,679
Consumer Solutions
76
38
Other Operations
-116
-173
Total continuing operations
1,178
1,544
Operating profit by segment
EUR million
2024
2023
Generation
1,103
2,058
Consumer Solutions
122
-215
Other Operations
100
-181
Total continuing operations
1,325
1,662
For further information see Note 6.
Sales decreased to EUR 5,800 (6,711) million, mainly due to lower power prices.
Comparable operating profit decreased to EUR 1,178 (1,544) million. The Generation segment
results decreased to EUR 1,218 (1,679) million, mainly resulting from clearly lower spot and hedge
power prices. The result for the Consumer Solutions segment increased to EUR 76 (38) million,
mainly due to higher electricity sales margins and the reduced scope of the regulated price cap
for electricity end users in Poland, the effect of which was partly offset by lower gas sales
margins in Poland and higher amortisations of customer acquisition costs.
Operating profit for the period was impacted by EUR 147 (118) million of items affecting
comparability, which included the tax-exempt capital gain of EUR 176 million from the
divestment of the recycling and waste business.
Comparable share of profits of associates and joint ventures was EUR -30 (7) million. The
comparable share of profits of associates and joint ventures was impacted by updated cost
estimates for the Swedish nuclear waste-related provisions in co-owned nuclear companies,
which was partly offset by positive impact from co-owned TVO (Note 7).
Finance costs – net amounted to EUR 55 (-138) million. Net interest expenses turned positive
due to lower interest expenses of EUR 226 (269) million and higher interest income of EUR 234
(165) million, mainly from deposits and cash. Interest income in 2024 includes EUR 19 million of
interest income relating to the Belgian income tax assessment and interest income from the
settlement of a commercial dispute (Note 11). Interest expenses in the comparison period
included EUR 41 million related to the bridge financing loan provided by the Finnish state-owned
holding company Solidium. Comparable finance costs – net amounted to EUR -36 (-137) million
(Notes 11 and 12).
Income taxes totalled EUR -239 (-69) million. The comparable effective income tax rate was
19.1% (19.1%) (Note 12).
Net profit after non-controlling interests was EUR 1,164 (1,514) million and comparable net profit
was EUR 900 (1,150) million. Comparable net profit is adjusted for items affecting comparability,
adjustments to the share of profit of associates and joint ventures, finance costs – net, income
tax expenses and non-controlling interests (Note 7.2).
Earnings per share were EUR 1.30 (1.68). Comparable earnings per share were EUR 1.00 (1.28)
(Note 7 and Note 13).
6
Financial position and cash flow
EUR million
2024
2023
Interest expense
-226
-269
Interest income
234
165
Other financial expenses - net
47
-34
Finance costs - net
55
-138
Financial net debt
367
942
Cash flow
Net cash from operating activities decreased and totalled EUR 1,392 (1,710) million due to the
lower comparable EBITDA, lower positive change in working capital and realised foreign
exchange losses included in non-cash and other items, the effect of which was partly offset by
higher interest received and lower paid income taxes.
Net cash from investing activities totalled EUR 604 (1,433) million. Capital expenditure
amounted to EUR 472 (576) million. Divestment of shares and capital returns of EUR 764 (5)
million mainly included the divestment of the recycling and waste business. Net cash from
investing activities was positively impacted by lower margin receivables, a decrease of EUR 386
(decrease 2,024) million.
Net cash used in financing activities totalled EUR -2,043 (-2,640) million. The net repayments of
interest-bearing liabilities totalled EUR 975 (1,622) million, including EUR 900 million
prepayments of bank loans. The net repayments of interest-bearing liabilities in the comparison
period included the EUR 1,000 million repayment of bonds, the EUR 1,100 million repayment of
the liquidity revolving credit facilities and the EUR 350 million repayment of the Finnish State
bridge loan, which were partly offset by issued bonds of EUR 1,150 million. The first dividend
payment of EUR 520 (413) million was paid in April 2024 and the second instalment of EUR 511
(404) million was paid in October 2024.
Liquid funds decreased by EUR -47 (increase 503) million and liquid funds at 31 December 2024
amounted to EUR 4,136 million.
For further details, see the ‘Financing’ section.
Assets
At the end of 2024, total assets amounted to EUR 17,307 (31 Dec 2023: 18,739) million. The
decrease of EUR 1,432 million mainly reflects the divestment of the recycling and waste business
and lower margin receivables.
Equity
Total equity amounted to EUR 9,154 (31 Dec 2023: 8,499) million. Equity attributable to owners
of the parent company totalled EUR 9,074 (31 Dec 2023: 8,438) million. Equity was positively
impacted by the EUR 1,164 million net profit for the period and by the EUR 465 million fair
valuation of cash flow hedges, offset by the 2023 dividend of EUR 1,032 million.
The dividend for 2023, amounting to a total of EUR 1,032 million, was approved by the Annual
General Meeting on 25 March 2024 and paid in two instalments, in April and October.
Financing
The Group’s financial position continues to be very solid. At the end of 2024, the Group’s ratio
for financial net debt-to comparable EBITDA was very low, at 0.2 times for the last twelve
months.
At the end of 2024, financial net debt was EUR 367 (31 Dec 2023: 942) million. Fortum’s total
interest-bearing liabilities were EUR 4,828 (31 Dec 2023: 5,909) million and liquid funds
amounted to EUR 4,136 (31 Dec 2023: 4,183) million.
At the end of 2024, Fortum’s long-term loans totalled EUR 4,274 million. Short-term loans
amounted to EUR 459 million. (Note 27)
In May, Fortum extended the EUR 800 million bilateral revolving credit facility maturing in June
2025 by one year, with a new maturity date in June 2026.
In June, Fortum signed its first green loan under the company’s Green Finance Framework,
which was established in January. The EUR 300 million green loan is aimed to refinance
renewable energy and energy-efficiency projects. The loan period is five years, and it has a one-
year extension option by the lender. The loan partly refinanced a bank loan of EUR 700 million, of
which Fortum prepaid the remaining EUR 400 million in June. Fortum extended the EUR 2,400
million Core revolving credit facility by two years, with a new maturity date in June 2027. After
the original due date in June 2025, the facility size will be EUR 2,206 million.
In December, Fortum prepaid a EUR 500 million bullet loan originally maturing in February 2025.
Additionally, Fortum signed a new bilateral EUR 800 million revolving credit facility with maturity
in January 2027.
7
At the end of 2024, Fortum had undrawn committed credit facilities of EUR 4,000 million. In
addition, Fortum has EUR 100 million committed overdraft limits that are valid until further
notice.
The current long-term credit rating for Fortum by S&P Global Ratings is BBB+ with Stable
Outlook and by Fitch Ratings BBB with Stable Outlook.
Change in financial net debt during 2024, EUR million
vesiputous_2024_EN.svg
Operating environment
European power markets
During 2024, Nordic electricity prices were again pressured by high precipitation amounts,
especially during October and December, which resulted in low spot prices. Additionally, warmer
than normal weather conditions and increasing wind power output contributed to the soft
Nordic spot prices. The combined effect of soft Nordic fundamentals led to a significant
increase in the Nordic reservoir surplus, reaching +14 TWh compared to the long-term average
by the end of the year. Continental European electricity prices were supported by stronger gas
and carbon prices.
According to preliminary statistics, power consumption in the Nordic countries was 395
(386) TWh.
In Central Western Europe (Germany, France, Austria, Switzerland, Belgium and the
Netherlands, was 1,286 (1,268) TWh according to preliminary statistics. Power demand in
Continental Europe continued to be clearly below the five-year average, affected by weaker
industrial production.
At the end of 2024, the Nordic hydro reservoirs were at 99 TWh, which is 14 TWh above the
long-term average and 22 TWh higher than in the previous year. A major part of the surplus is
in Norway.
In 2024, the average system spot price at Nord Pool was 36.1 (56.4) EUR/MWh. The average
area price in Finland was 45.6 (56.5) EUR/MWh. In Sweden, the average area price in the SE3
area (Stockholm) was 35.8 (51.7) EUR/MWh, and the price in the SE2 area (Sundsvall) was 24.6
(40.0) EUR/MWh. In Germany, the average spot price in 2024 was 79.6 (95.2) EUR/MWh.
In early February, the Nordic system electricity forward price on Nasdaq Commodities for the
remainder of 2025 was around 32 EUR/MWh and for 2026 around 37 EUR/MWh. The Nordic
water reservoirs were at 85 TWh, which is about 17 TWh above the long-term average and 24
TWh above the level one year earlier. The German electricity forward price for the remainder of
2025 was around 103 EUR/MWh and for 2026 around 99 EUR/MWh.
8
European commodity markets
Gas demand in Central Western Europe was 1,709 (1,718) TWh in 2024. The Central Western
European gas storage levels decreased from 559 TWh at the beginning of the year to 448 TWh
at the end of the year, which is 111 TWh lower than one year ago and 32 TWh lower than the five-
year average (2019–2023).
The average gas front-month price (TTF) for 2024 was 34.6 (41.4) EUR/MWh. The 2025 forward
price increased from EUR 33.4 EUR/MWh at the beginning of the year to EUR 46.6 EUR/MWh at
the end of the year.
The EUA (EU Allowance) price decreased from EUR 76.0 EUR/tonne at the beginning of the year
to 73.0 EUR/tonne at the end of the year.
The forward quotation for coal (ICE Rotterdam) for 2025 increased from 93.8 USD/tonne at the
beginning of the year to 113.7 USD/tonne at the end of the year.
In early February, the TTF forward price for gas for the remainder of 2025 was 53 EUR/MWh. The
forward quotation for EUAs for 2025 was at the level of 82 EUR/tonne. The forward price for coal
(ICE Rotterdam) for the remainder of 2025 was 109 USD/tonne.
Power consumption
TWh
2024
2023
2022
Nordic countries
395
386
386
Average prices
2024
2023
2022
Spot price for power in Nord Pool power exchange, EUR/MWh
36.1
56.4
135.9
Spot price for power in Finland, EUR/MWh
45.6
56.5
154.0
Spot price for power in Sweden, SE3, Stockholm EUR/MWh
35.8
51.7
129.2
Spot price for power in Sweden, SE2, Sundsvall EUR/MWh
24.6
40.0
61.9
Spot price for power in Germany, EUR/MWh
79.6
95.2
235.4
CO2, (ETS EUA next Dec), EUR/tonne CO2
67
85
81
Coal (ICE Rotterdam front month), USD/tonne
112
125
279
Oil (Brent front month), USD/bbl
80
82
99
Gas (TTF front month), EUR/MWh
35
41
133
Hydro reservoir
TWh
31 Dec 2024
31 Dec 2023
31 Dec 2022
Nordic hydro reservoir level
99
77
79
Nordic hydro reservoir level, long-term average
84
84
84
Nordic water reservoirs, energy content, TWh
14293651410034
Source: Nord Pool
Export/import
TWh (+ = import to, - = export from Nordic area)
2024
2023
2022
Export / import between Nordic area and Continental Europe +
Baltics
42
-41
-35
Export/import between Nordic area and Russia
0
0
4
Total
42
-41
-31
9
Regulatory environment
The new EU Commission launches its legislative work
In December 2024, the new European Commission for 2024-2029 was officially confirmed. All
nominated Commissioners passed the European Parliament’s hearings without any changes in
the portfolio allocation. Teresa Ribera (ES) will lead the overall clean transition agenda, whereas
Dan Jørgensen (DK) holds the energy portfolio and Jessika Roswall (SE) the environment
portfolio.
In 2025, the Commission will publish a couple of key policy initiatives, including the
Competitiveness Compass, Clean Industrial Deal and Omnibus package. All the upcoming
initiatives aim to support the political priorities of the Commission, including competitiveness
and decarbonisation, security and defence, as well as democracy and rule of law. The
Commission is also expected to continue with its efforts to reach the existing climate and
energy targets and set new ones for 2040 and onwards.
Regulatory pressure on hydropower compliance
In October–November 2024, the European Commission initiated infringement procedures
against several member states, including Sweden and Finland, for failing to comply with the
Water Framework Directive, WFD (Directive 2000/60/EC). According to the Commission, both
countries have failed to conduct regular reviews of the control measures for different types of
water use as frequently as required by the WFD. The member states were given two months to
respond to the identified shortcomings. Should the responses be considered unsatisfactory, the
Commission may proceed with a reasoned opinion, a formal request to comply with EU law. If
the infringement procedures were to ultimately result in an automatic review of permits, e.g. for
hydro power plants, this would create uncertainty in the operating environment and weaken the
investment environment.
Swedish real-estate tax increasing
The Swedish real-estate tax for energy production will increase for the period 2025–2030. The
increase is a result of the adjustment of taxation values, done in six-year cycles, based on
revenues and costs during the previous period. The increase for 2025–2030 is mainly a
consequence of the very high electricity prices in 2022. Fortum’s annual real-estate tax in
Sweden will increase. Fortum considers the higher real-estate tax on power generation to be
counterproductive, since it will be a hurdle to investments in new capacity. See the Outlook
section for further details.
Finnish government promoting industrial investments
Published in December 2024, the new Finnish industrial policy strategy outlines the objectives
for resurgence and growth of Finnish industries, with a focus on fostering new solutions at an
industrial scale. Clean energy is recognised as a key area to attract green industrial investments
to Finland. However, concrete policy measures related to the energy market design will be
elaborated in the energy and climate strategy in spring 2025.
As one concrete measure, in January 2025 the Finnish government adopted a clean transition
aid scheme for industrial investments. New, strategically important investment projects over
EUR 30 million and with the objective to decarbonise industrial production processes and
improve energy efficiency are eligible for the government grants. The aid is limited to 15-50% of
the investment cost and to a maximum of EUR 200 million per company or group. The impact on
Fortum is mainly indirect and relates to potential increased use of electricity by industries
eligible for the scheme.
10
Segment reviews
Business model
Fortum has three reportable segments: Generation, Consumer Solutions and Other Operations.
The target of the organisation is successful implementation of the company’s purpose and
strategy. The business structure mirrors the key value drivers in Fortum’s clean generation
portfolio, strong sales and trading capabilities as well as customer orientation.
Generation segment
The Generation segment consists of the Hydro Generation, Nuclear Generation, Corporate
Customers and Markets and Renewables and Decarbonisation business units.
Hydro Generation
The Hydro Generation business unit is responsible for operating, maintaining and developing
Fortum’s 4.7 gigawatt (GW) hydropower assets. The unit’s key value drivers include safe
operations and the ability to optimise and increase the assets’ flexibility and availability.
Nuclear Generation
The Nuclear Generation business unit operates, maintains and develops Fortum’s fully-owned
1.0 GW Loviisa nuclear power plant, and it manages Fortum’s ownership in the co-owned
nuclear assets in Finland and Sweden with a share of 2.2 GW. The business has significant in-
house engineering competencies and it also offers expert services that cover the whole lifecycle
of nuclear power plants, from newbuilds to decommissioning and final disposal of nuclear waste.
Corporate Customers and Markets
The Corporate Customers and Markets business unit is responsible for hedging and value
creation in both physical and financial power markets, locking in revenues for Fortum’s power
generation and managing the supply for the Consumer Solutions unit. The unit also serves as the
customer interface for large industrial customers and thereby pursues long-term value through
power demand creation in the Nordic market.
Renewables and Decarbonisation
The Renewables and Decarbonisation business unit is responsible for onshore wind and solar
power business through project development and execution. The unit is also responsible for
Fortum’s district heating and cooling business and the decarbonisation of heat production
assets. Furthermore, the business unit explores clean hydrogen in the Nordics.
Consumer Solutions segment
The Consumer Solutions segment includes the Consumer Solutions business unit, which is
responsible for offering energy solutions to consumers and small- and medium-sized enterprises
predominantly in the Nordics and Poland, including customer service and invoicing services.
With its over 2 million customers, Fortum is the largest energy solution provider in the Nordics.
Other Operations segment
The Other operations segment includes the Circular Solutions business, which is not at the core
of Fortum’s strategy. In 2024, Fortum divested the Circular Solutions’ recycling and waste
business, turbine and generator services and biobased solutions. After these divestments,
Fortum continues the strategic review of the remaining Circular Solutions’ businesses, mainly
the battery recycling business.
In addition, Other operations include innovation and venturing activities, enabling functions and
corporate management. Fortum’s enabling functions are Finance, Sustainability and Corporate
Relations, People and Procurement, Legal, and Transformation and IT. The temporary enabling
function, Transformation Office, was closed down at the end of 2024.
11
Generation
Generation is responsible for power generation mainly in the Nordics. The segment comprises
CO2-free hydro, nuclear, wind and solar power generation, as well as district heating and
cooling, and decarbonisation of heat production assets. The Generation segment is responsible
for hedging and value creation both in physical and financial power markets and is a customer
interface for industrial and municipal customers to drive decarbonisation in industries and
provide clean energy at scale. Furthermore, the business develops capabilities and projects in
renewables and nuclear, and explores clean hydrogen.
EUR million
2024
2023
Reported
Sales
3,795
4,420
- power sales
3,234
3,889
of which Nordic outright power sales 1)
2,302
2,799
- heat sales
502
481
- other sales
60
50
Operating profit
1,103
2,058
Share of profit/loss of associates and joint ventures 2)
22
59
Capital expenditure and gross investments in shares
355
454
Number of employees
2,053
1,758
EUR million
2024
2023
Comparable
EBITDA
1,421
1,874
Operating profit
1,218
1,679
Share of profit/loss of associates and joint ventures 2)
-26
7
Return on net assets, %
16.0
24.2
Net assets
7,608
7,263
1)Nordic outright power sales includes hydro and nuclear generation. It does not include CHP and condensing power
generation, minorities, customer business or other purchases.
2)Power plants are often built jointly with other power producers, and owners purchase electricity at cost including interest
cost and production taxes. The share of profit/loss is mainly IFRS adjustments (e.g. accounting for nuclear-related assets
and liabilities) and depreciations on fair-value adjustments from historical acquisitions (Note 19).
Power generation by source
TWh
2024
2023
Hydropower, Nordic
20.2
20.9
Nuclear power, Nordic
24.3
24.8
Wind power, Nordic
0.9
0.1
CHP and condensing power 1)
0.8
1.0
Total
46.2
46.8
1)CHP and condensing power generation in Finland and Poland.
Nordic sales volume
TWh
2024
2023
Power sales volume, Nordic
58.9
62.6
of which Nordic outright power sales volume 1)
43.8
44.4
Power sales volume, Other
0.6
0.6
Heat sales volume, Nordic
2.0
2.1
Heat sales volume, Other
3.2
3.4
1)The Nordic outright power sales volume includes hydro and nuclear generation. It does not include CHP and condensing
power generation, minorities, customer business or other purchases.
Achieved power price
EUR/MWh
2024
2023
Generation’s Nordic achieved power price 1)
52.5
63.1
1)Generation’s Nordic achieved power price includes hydro and nuclear generation. It does not include thermal generation,
minorities, customer business or other purchases.
The Generation segment’s total power generation decreased in 2024. Hydro generation volumes
decreased by 3%. Nuclear volumes decreased by 2%. There were prolonged outages in
Forsmark's third unit and in Olkiluoto's first and second unit, as well as longer planned outages
in Loviisa and in Olkiluoto's third unit, the negative effect of which was partly offset by increased
volume at the Oskarshamn nuclear power plant due to a shorter planned outage. Volumes from
wind generation increased by 0.8 TWh following the commissioning of the Pjelax wind farm.
Heat generation decreased by 4% compared to previous year due to warmer weather. CHP-
based power volumes decreased by 11% .
The achieved power price decreased by 17%, or 10.6 EUR/MWh, and was 52.5 EUR/MWh. The
decrease in the achieved power price was mainly attributable to both lower spot and hedge
prices. The annual optimisation premium was slightly above the guidance of 6-8 EUR/MWh, at
8.7 EUR/MWh. The spot power price in Fortum’s generation price areas declined to 38.4 EUR/
MWh compared to 51.3 EUR/MWh in 2023.
Comparable operating profit decreased clearly, by 27%, impacted mainly by the lower spot and
hedge prices, but also lower generation volumes for both nuclear and hydro, and higher costs
for Olkiluoto's third unit as the first months of 2023 were a test period. The result of the
renewables business was positively impacted by a sales gain of EUR 16 million from the
divestment of Fortum’s remaining share in the Indian solar power portfolio with four solar power
plants and a total capacity of 185 MW. The result contribution of the Pjelax wind farm was
slightly positive. The result of the district heating business improved and turned positive, mainly
due to lower fuel costs supported by more electricity-based heat production in Finland and the
higher sales price for heat and power in Poland.
12
Operating profit was affected by EUR -115 (380) million of items affecting comparability, mainly
related to the fair-value change of non-hedge-accounted derivatives. (Note 6).
Comparable share of profits of associates and joint ventures totalled EUR -26 (7) million. The
comparable share of profits of associates and joint ventures was impacted by updated cost
estimates for the Swedish nuclear waste-related provisions in co-owned nuclear companies,
which was partly offset by positive impact from co-owned TVO (Note 6 and Note 19).
Fortum and Huoltovarmuuskeskus, the Finnish National Emergency Supply Agency (NESA), have
an agreement that Fortum’s Meri-Pori power plant is being used to secure national supply
during the period 1 April 2024–31 December 2026. NESA has reserved the production of the
power plant to be used only in the event of severe disruptions or emergencies in the electricity
system.
On 21 March, Fortum announced that it will build new emission-free, electricity-based district
heat production in the Nuijala area of Espoo, Finland, as part of the Espoo Clean Heat
programme. The production plant will have a 50-MW electric boiler and an 800-MWh heat
accumulator. The electric boiler/heat storage combination will increase the flexibility of heat
production and level out electricity demand by utilising time-variable electricity pricing. The
construction work began in spring 2024 and production is expected to start for the 2025-2026
heating season. For further details, see the ‘Capital expenditures’ section.
In April, Fortum’s biggest and Finland’s third-largest wind farm, the 380-MW Pjelax, became
fully operational. It started commercial operations in the beginning of July through a power
purchase agreement (PPA) with the Finnish Helen. Helen is purchasing 65% of the power
generation through the 12-year “pay-as-produced” PPA. The farm's 56 wind turbines will
produce around 1.1 TWh of renewable energy annually. Pjelax is fully consolidated on Fortum’s
balance sheet; Helen has a 40% minority ownership in the company.
On 17 April, Fortum announced that Fortum and the Swedish ferroalloys producer Vargön Alloys
AB had signed a five-year power purchase agreement (PPA) with progressive pricing for the
delivery of approximately 0.4 TWh of electricity and Guarantees of Origin for nuclear power per
annum in Sweden. The contract term started in December 2024 and runs until the end of 2029.
The power is sourced from Fortum’s nuclear portfolio in the SE3 (Stockholm) price area in central
Sweden.
On 28 April, Fortum closed its last coal-fired unit at the Suomenoja production plant used for
district heat production in Espoo, Finland. As a result of the decision, Fortum's Heating and
Cooling business in Finland phased out coal one year earlier than expected.
On 3 May, Fortum signed an agreement to sell its remaining 43.75% share of its Indian solar
power portfolio to Gentari Renewables India Pte. Ltd., a subsidiary of clean energy solutions
provider Gentari Sdn. Bhd. The portfolio comprised four solar power plants with a total capacity
of 185 MW. In the transaction, the other owners also sold their ownership. Fortum received total
proceeds of EUR 33 million in the fourth quarter of 2024. Fortum recorded a sales gain of EUR 16
million in comparable operating profit from the divestment in connection with the closing in the
second quarter of 2024.
On 29 October, Fortum announced that it will invest EUR 100 million in decarbonisation of the
Czestochowa combined heat and power (CHP) plant in Poland. The Czestochowa plant’s retrofit
with biomass technology will decrease Fortum’s coal capacity by 0.1 GW to 0.9 GW and direct
CO2 emissions by approximately 175,000 tonnes. The investment will take place over the period
from the fourth quarter of 2024 until the fourth quarter of 2026.
On 19 December, Fortum signed an agreement to acquire a project development portfolio for
renewable power from Enersense. The acquired portfolio includes 2.6 GW of early-stage
onshore wind development projects in Finland, of which only a minor part is expected to reach
ready-to-build status. The purchase price on a debt-and-cash-free basis is approximately EUR 9
million and will be paid at closing, which is expected in the first quarter of 2025. The transaction
is subject to customary closing conditions. In addition to the purchase price, the transaction
includes earn-outs that are subject to projects successfully reaching a final investment decision
in the future. No investment commitments have been made and decisions could be made
earliest by the end of this decade.
Nord Pool, power price, 2020–2024, EUR/MWh
Fortum_graafit_FS_2024_EN_NordPool.svg
13
Consumer Solutions
Consumer Solutions is responsible for offering energy solutions to consumers, including small-
and medium-sized enterprises, predominantly in the Nordics and Poland. Fortum is the largest
energy solutions provider in the Nordics, with over two million customers. The business provides
electricity, as well as related value-added and digital services, mainly to retail customers.
EUR million
2024
2023
Reported
Sales
3,073
3,766
- power sales
2,635
3,219
- gas sales
386
422
- other sales
53
125
Operating profit
122
-215
Capital expenditure and gross investments in shares
71
103
Number of employees
1,118
1,281
EUR million
2024
2023
Comparable
EBITDA
161
108
Operating profit
76
38
Return on net assets, %
11.2
4.5
Net assets
725
838
Sales volumes
TWh
2024
2023
Electricity
34.4
33.0
Gas
6.9
5.2
Number of customers
Thousands 1)
2024
2023
Electricity
2,220
2,290
E-mobility 2)
40
60
Gas
40
40
Total
2,300
2,390
1)Rounded to the nearest 10,000.
2)Measured as average monthly paying customers for the quarter.
The electricity sales volume increased by 4% and the gas sales volume increased by 32%.
Volumes were driven by colder weather in the first part of the year, but negatively affected by
warmer weather during the second half of the year. The volumes were also impacted by the
larger customer base in the gas enterprise business in Poland and the acquisition of Telge
Energi AB in 2023. Total sales revenues decreased by 18% due to lower electricity and gas prices
in the Nordics and in Poland.
Comparable operating profit increased by EUR 38 million to EUR 76 million, mainly due to higher
electricity sales margins, reduced scope of the regulated price cap for electricity end users in
Poland and higher sales margins for value-adding services, the effect of which was partly offset
by lower gas sales margins in Poland and higher amortisations of customer acquisition costs.
In March, the Consumer Solutions segment and the IT unit concluded their change negotiations
as part of Fortum’s ongoing efficiency improvement programme to reduce fixed costs by EUR
100 million. As a result of the negotiations, the total number of redundancies was approximately
70, part of which was related to Consumer Solutions.
In 2023, Fortum started to simplify its brand structure within Consumer Solutions. The first
phase was completed in December 2023 by merging the Göta Energi brand to the Fortum brand.
In May 2024, the second phase was completed with the merger of Norges Energi and Fortum
Ström in Norway. The final phase was completed in the beginning of October with the merger of
Telge Energi and Fortum Markets in Sweden. The merger of Telge Energi creates personnel
synergies in the amount of approximately 80 FTEs with full effect from the first quarter of 2025.
All costs associated with merger and subsequent downsizing have been recognised in the 2024
results. The cost savings from the synergies will be approximately EUR 8 million in 2025.
14
Other Operations
The Other Operations segment includes the Circular Solutions business, responsible for
Fortum’s recycling and waste assets, as well as turbine and generator services, biobased
solutions and battery recycling business. All these businesses, mainly excluding the battery
recycling business, were divested during the fourth quarter of 2024. The Other Operations
segment also comprises innovation and venturing activities, enabling functions and corporate
management.
EUR million
2024
2023
Reported
Sales
596
548
- power sales
5
9
- heat sales
25
31
- waste treatment sales
212
226
- other sales
355
281
Operating profit
100
-181
Share of profit/loss of associates and joint ventures
-3
—
Capital expenditure and gross investments in shares
90
107
Number of employees
1,295
2,186
EUR million
2024
2023
Comparable
EBITDA
-26
-80
Operating profit
-116
-173
Share of profit/loss of associates and joint ventures
-3
0
Comparable operating profit improved by EUR 56 million and amounted to EUR -116 million,
mainly due to higher internal charges for services of enabling functions. The result of the
Circular Solutions business decreased mainly due to the completion of the recycling and waste
business divestment.
In March, the IT unit and the Consumer Solutions segment concluded the change negotiations
as part of Fortum’s ongoing efficiency improvement programme to reduce fixed costs by EUR
100 million. As a result of the negotiations, the total number of redundancies was approximately
70, part of which was related to the IT unit.
On 18 July, Fortum signed an agreement to sell its recycling and waste business to Summa
Equity through its portfolio company NG Group. The divestment was completed on 29
November. The total consideration from the divestment was approximately EUR 800 million on a
debt- and cash-free basis. Fortum recorded a tax-exempt capital gain of EUR 176 million, which
is reported as Items Affecting Comparability in the Other Operations segment’s results. The net
cash flow received from the transaction was approximately EUR 720 million.
On 23 September, Fortum announced that it had signed an agreement to sell its 37.4%
ownership in Chempolis Oy, all Fortum’s biobased solutions businesses, and the shares in the
holding company owning 40.3% in Assam Bio Ethanol Pvt Ltd in India to AM Green Technology &
Solutions B.V. The transaction did not have any material financial impact on Fortum Group’s
result.
On 1 November, Fortum signed an agreement to sell its turbine and generator services to the
industrial technical services provider Elcoline Group Oy. The turbine and generator services
businesses are located in Finland, Sweden and Germany and employ approximately 170
employees. The transaction was completed in 2024 and did not have any material financial
impact on Fortum Group’s result.
Capital expenditures, divestments and investments
in shares
EUR million
2024
2023
Capital expenditure
Intangible assets
81
92
Property, plant and equipment
403
520
Total
483
611
Gross investments in shares
Subsidiaries
0
22
Associated companies and joint ventures
19
12
Other investments
14
19
Total
33
53
In 2024, capital expenditures and investments in shares totalled EUR 516 (664) million. Capital
expenditures were EUR 483 (611) million (Note 3 and Note 6).
15
Fortum expects to start, or has started, power and heat production capacity of new power
plants and expects to upgrade its existing plants as follows:
Type
Electricity
capacity, MW
Heat capacity,
MW
Capital
expenditure,
MEUR
Supply starts/
started
Growth
Loviisa, Finland
Nuclear
Lifetime
extension
1,000
Espoo Clean
Heat, Finland
Espoo and
Kirkkonummi
Nuijala, Espoo
Waste heat
utilisation
Electric boiler
360
50
300
IV/2025
Pjelax, Finland
Wind
380
360
II/2024
Czestochowa,
Poland
Biomass
Decarbonisation
Decarbonisation
100
IV/2026
Maintenance
Hydro projects
Hydro
35
Generation
Growth capital expenditure
On 22 December 2021, Fortum announced an investment decision to construct the 380-MW
Pjelax wind farm in Närpes and Kristinestad in Finland in partnership with the Finnish energy
company Helen Ltd. Construction of the wind farm started in January 2022 and testing of power
generation in October 2023. The wind farm was fully operational in the second quarter of 2024.
It will produce around 1.1 TWh of renewable energy annually from 56 wind turbines. Fortum and
Helen have a 12-year “pay-as-produced” power purchase agreement (PPA) through which Helen
is purchasing 65% of the power generation, starting from July 2024. Pjelax is fully consolidated
on Fortum’s balance sheet; Helen has a 40% minority ownership in the company. The total
capital expenditure of the project is approximately EUR 360 million, of which Fortum’s share is
approximately EUR 216 million.
On 16 February 2023, the Finnish Government granted a new operating licence until the end of
2050 for both units at Fortum’s Loviisa nuclear power plant. Over the course of the new licence
period, the plant is expected to generate up to 177 TWh of CO2-free electricity. Investments
related to the continuation of operations and lifetime extension will amount to an estimated EUR
1 billion during 2023-2050. On 29 May 2024, Fortum announced that it will modernise the Loviisa
nuclear power plant’s low-pressure turbines as part of the lifetime extension-related
investments. Over the past five years, Fortum has already invested approximately EUR 200
million in refurbishing of the Loviisa power plant. The Loviisa power plant is the first nuclear
power plant in Finland and has two units: unit 1 started operating in February 1977, and unit 2 in
November 1980. The units’ previous operating licences are valid until 2027 and 2030.
Fortum and the City of Espoo are committed to carbon-neutral district heat production and
distribution in the Espoo, Kauniainen and Kirkkonummi areas by 2030. The project, Espoo Clean
Heat, provides a flagship example of efficient decarbonisation and a transition to local self-
sufficient heating on a large scale by, for example, increasing flexible electricity-based
production through e.g. electric boilers and air-to-water heat pumps. Fortum’s total capital
expenditure of the Espoo Clean Heat programme amounts to approximately EUR 300 million. In
June 2023, Fortum announced its decision to invest approximately EUR 225 million during 2023–
2027 in projects within the programme. During January–December 2024, EUR 77 million of the
Espoo Clean Heat investments materialised, and, since the beginning of 2023, Fortum’s
investments in the programme totalled approximately EUR 108 million. The use of coal was
discontinued in April 2024, more than a year ahead of schedule. The largest sites currently under
construction are two sites in Espoo and Kirkkonummi with heat offtake from Microsoft’s planned
large-scale data centres and a new electricity-based district heat production plant in the Nuijala
area in Espoo. These plants’ heat capacity will be 410 MW, and operations are expected to begin
for the 2025–2026 heating season. Once the waste heat recovery from Microsoft’s data centres
is in full operation, district heat production will be completely carbon neutral. In 2024, the share
of emissions-free district heat production was already 69%.
On 29 October 2024, Fortum announced that it will invest EUR 100 million in decarbonisation of
the Czestochowa combined heat and power (CHP) plant in Poland. The Czestochowa plant’s
retrofit with biomass technology will decrease Fortum’s coal capacity by 0.1 GW to 0.9 GW and
direct CO2 emissions by approximately 175,000 tonnes. The investment will take place over a
period from the fourth quarter of 2024 until the fourth quarter of 2026.
Maintenance capital expenditure
Fortum continuously maintains and upgrades its hydropower fleet and currently has numerous
hydropower plant refurbishment and modernisation projects underway. The resulting capacity
increase is estimated to be approximately 35 MW in total by 2030.
Other Operations
In July 2022, Fortum and GIG (Green Investment Group, a specialist green investor within
Macquarie Asset Management) agreed to invest in a new waste-to-energy plant in Glasgow,
Scotland, through a 50/50 joint venture. In June 2024, Macquarie Asset Management
announced that it had reached an agreement to sell its 50% stake in the plant to Gren Energy.
When fully commissioned, the South Clyde Waste-to-Energy plant will have an annual
processing capacity of 350,000 tonnes of waste. The plant will have a power generation gross
capacity of 45 MWe, corresponding to the average annual electricity consumption of
approximately 90,000 homes. The facility is expected to enter commercial operations by the
end of 2026.
16
In August 2023, Fortum announced that it will assess strategic options, including potential
divestments, of its Circular Solutions businesses. The Circular Solutions businesses has
comprised Fortum’s recycling and waste assets, the batteries recycling business, the turbine
and generator services as well as biobased solutions. In 2023, these business operations
employed approximately 1,200 people, mainly in the Nordics (Finland, Sweden and Denmark),
and its comparable EBITDA was approximately EUR 40 million. At the end of 2023, the net assets
of the Circular Solutions businesses were approximately EUR 750 million. On 18 July, Fortum
announced that it had signed an agreement to sell its recycling and waste business to Summa
Equity for approximately EUR 800 million. The divestment was completed on 29 November, and
Fortum recorded a tax-exempt capital gain of EUR 176 million. On 23 September, Fortum
announced that it has signed an agreement to sell its 37.4% ownership in Chempolis Oy,
including all Fortum’s biobased solutions businesses, and the shares in the holding company
owning 40.3% in Assam Bio Ethanol Pvt Ltd in India to AM Green Technology & Solutions B.V.
The transaction did not have any material financial impact on Fortum Group’s result. On 1
November, Fortum signed an agreement to sell its turbine and generator services to the
industrial technical services provider Elcoline Group Oy. The transaction was completed in the
fourth quarter of 2024 and it did not have a material financial impact on Fortum Group’s result.
After the divestments, Fortum continues the strategic review of its remaining Circular Solutions’
businesses: the battery recycling business and the UK-based waste-to-energy business.
Research and development
Decarbonisation is at the core of Fortum’s strategy and, alongside Fortum’s current businesses,
the company is carefully exploring and developing new sources of growth within clean energy
solutions.
Fortum’s goal is to be at the forefront of energy technology utilisation and application
development. To accelerate innovation and the commercialisation of new offerings, Fortum
strengthens its in-house innovation and venturing efforts and builds partnerships with leading
global suppliers, technology and service companies, as well as research institutions and
universities. Fortum makes direct and indirect investments in start-ups that have promising new
innovations focused on decarbonisation, flexibility, or accelerate the transition towards a
sustainable economy. Fortum also invests in technologies that support better utilisation of the
current asset base and that can create new markets and products for Fortum. The company is
continuously looking for emerging clean energy solutions and for solutions that increase
resource and system efficiency.
Fortum began to build a 2-MW hydrogen test facility in Loviisa. Facility is expected to be in
operation for fixed period of 2 years between 2026 and 2028. The total R&D cost of the pilot
project is around EUR 17 million.
The Group reports its R&D expenditure on a yearly basis. In 2024, Fortum’s R&D expenditure was
EUR 31 (56) million, or 0.5% (0.8%) of sales.
EUR million or as indicated
2024
2023
2022
Research and development expenditure
31
56
55
- of sales %
0.5
0.8
0.7
Changes in management
On 27 June, Fortum announced that Bernhard Günther, Chief Transformation Officer and
member of Fortum Leadership Team, would leave Fortum at the end of 2024 by mutual
agreement. The Transformation Office was terminated and the work was handed over to the line
organisation at the end of the year.
On 28 June, Fortum announced that Nora Steiner-Forsberg, Executive Vice President, Legal,
General Counsel, and Eveliina Dahl, Executive Vice President, People and Procurement, would
leave Fortum at the end of 2024 to take on positions in other companies. At the end of
December, Fortum announced the appointments of Kati Levoranta (LL.M., MBA) as Executive
Vice President, Legal, General Counsel, and Karin Svenske Nyberg (M.Sc.) as Executive Vice
President, People. Both Kati Levoranta and Karin Svenske Nyberg will become members of the
Fortum Leadership Team. Svenske Nyberg will start in her new role on 1 May 2025 and
Levoranta on 1 July 2025 at the latest.
Remuneration and share-based incentive plan for
2024–2026
In December 2023, Fortum’s Board of Directors decided to commence the 2024–2026 long-term
incentive (LTI) plan as part of Fortum’s ongoing long-term incentive programme; the maximum
number of shares that may be delivered as reward amounts to approx. 1,100,000 shares.
The maximum number of shares granted (gross) to the President and CEO is 125,000.
Respectively, taking into account the changes in Fortum Leadership Team (FLT) during 2024, the
maximum number of shares granted (gross) to the other FLT members totalled 206,687 on 31
December 2024. The total number of shares granted in the 2024–2026 LTI plan was 918,870 on
31 December 2024. The outcome of the 2024–2026 LTI plan shall be confirmed in spring 2027.
On 17 September, Fortum’s Board of Directors decided to launch the savings period for the year
2025 under its Employee Share Savings (ESS) programme. The terms and conditions of the
savings programme are the same as in previous programmes. The total amount of all savings for
the 2025 savings period may not exceed EUR 6 million.
17
Annual General Meeting 2024
The Annual General Meeting of Fortum Corporation (AGM) 2024 was held at Messukeskus in
Helsinki, Finland, on 25 March 2024.
The AGM adopted the Financial Statements and the Consolidated Financial Statements for the
financial period 1 January–31 December 2023 and resolved to discharge from liability for the
financial year 2023 all the persons who had served as members of the Board of Directors and as
President and CEO during 2023.
The AGM resolved that a dividend of EUR 1.15 per share will be distributed for the financial year
that ended on 31 December 2023 and that the dividend will be paid in two instalments. The first
dividend instalment of EUR 0.58 per share was paid to shareholders who on the record date of
the first dividend instalment, 27 March 2024, were recorded in the company’s shareholders’
register held by Euroclear Finland Oy. The first dividend instalment was paid to the shareholders
on 5 April 2024. The second dividend instalment of EUR 0.57 per share was paid to the
shareholders who on the record date of the second dividend instalment, 2 October 2024, were
recorded in the company’s shareholders’ register held by Euroclear Finland Oy. The second
dividend instalment was paid on 9 October 2024.
The AGM resolved to approve the Remuneration Report of the Company’s Governing Bodies for
2023 and to support the Remuneration Policy of the Company’s Governing Bodies. These
resolutions made were advisory.
Board of Directors, remuneration, auditor and sustainability
reporting assurer
The AGM resolved that the remuneration payable to the members of the Board of Directors will
be changed in line with the earlier decision in principle to increase the remuneration, and the
remuneration to be paid for the next term will be as follows:
• Chair EUR 128,200 per year
• Deputy Chair EUR 79,400 per year
• Members EUR 56,800 per year.
In addition to the annual fee, fixed fees will be paid for Committee work as follows:
• Chair EUR 22,600 per year, provided that he/she does not simultaneously act as a Chair or
Deputy Chair of the Board.
• Member EUR 5,400 per year. If the Chair of the Committee simultaneously acts as Chair or
Deputy Chair of the Board of Directors, he/she will be paid the fixed fee of a Committee
member. The Chair and the members of any additional Committee established by a Board
decision will only be paid the meeting fees.
The meeting fee payable to a Board member, also for the Committee meetings, will be EUR
1,000 for each meeting, or EUR 2,000 if the member travels to the meeting outside his/her
country of residence. When a member participates in the meeting via remote connection, or for
the decisions that are confirmed without convening a meeting, the meeting fee will be EUR
1,000. The travel expenses of Board members are compensated in accordance with the
company’s travel policy. The annual fee for the Board work of the Board members will be paid in
company shares and in cash in such a way that approximately 40% of the amount of the annual
fee will be payable in shares acquired on behalf and in the name of the Board members, and the
remainder in cash. The company will pay the costs and the transfer tax related to the purchase
of the company shares. The shares will be acquired on behalf and in the name of the Board
members within two weeks following the publication of the company’s first-quarter 2024 interim
report. If share purchases cannot be carried out within the aforementioned schedule due to a
reason related to the company or a Board member, the shares will be acquired later, or the
annual fee will be paid fully in cash. The meeting fees and the fixed fees for the Committee work
will be paid fully in cash.
The AGM resolved that the Board of Directors will consist of nine members, the Chair and the
Deputy Chair included, and the following persons were elected to the Board of Directors for a
term ending at the end of the Annual General Meeting 2025: Mikael Silvennoinen as Chair,
Essimari Kairisto as Deputy Chair, and Ralf Christian, Luisa Delgado, Jonas Gustavsson, Marita
Niemelä, Teppo Paavola, Johan Söderström and Vesa-Pekka Takala as Members.
In addition, Deloitte Oy was re-elected as the company’s auditor. The auditor’s fee is paid
pursuant to an invoice approved by the company.
The AGM resolved to elect the sustainability audit firm Deloitte Oy as the company’s
sustainability reporting assurer. The sustainability reporting assurer’s fee is paid pursuant to an
invoice approved by the company.
Amendment of the Articles of Association of the company
The AGM resolved to amend the second paragraph of Article 11 of the company’s Articles of
Association. In accordance with the second paragraph of Article 11 of the Articles of Association,
the term of office of the auditor shall be one financial year.
Repurchase and disposal of the company's own shares
The AGM resolved to authorise the Board of Directors to decide on the repurchase and disposal
of the company's own shares up to 20,000,000 shares, which corresponds to approximately
2.23 per cent of all the shares in the company. Only the unrestricted equity of the company can
be used to repurchase own shares on the basis of the authorisation. These authorisations
cancelled the authorisations resolved by the AGM 2023 and will be effective until the next AGM
18
and in any event no longer than for a period of 18 months. These authorisations have not been
used as of 17 February 2025.
Charitable contributions
The AGM resolved to authorise the Board of Directors to decide on contributions in the total
maximum amount of EUR 500,000 for charitable or similar purposes, and, in addition, in the total
maximum amount of EUR 1,000,000 for incidental emergency relief or similar purposes as
needed, and to decide on the recipients, purposes and other terms of the contributions. The
authorisations will be effective until the next AGM. As of 17 February 2025, EUR 325,000 of the
authorisation for charitable or similar purposes and EUR 356,000 for incidental emergency relief
has been used.
Amendment of the Charter of the Shareholders’ Nomination
Board
The AGM resolved to amend the Charter of the Shareholders’ Nomination Board in a such way
that the shareholders entitled to appoint a member are determined on the basis of the
shareholders’ register of the company maintained by Euroclear Finland Oy on the first working
day in June each year, and that the Chair of the company’s Board of Directors will act as a non-
voting expert of the Shareholders’ Nomination Board. In addition, certain technical amendments
were made to the Charter of the Shareholders’ Nomination Board.
Other major announcements during the reporting
period
On 18 December, the Board of Directors of Fortum Corporation decided to commence the 2025–
2027 long-term incentive (LTI) plan for key employees and executives. The 2025–2027 LTI plan is
part of Fortum's ongoing LTI programme and follows the same principles as the previous plan.
The performance measures for the LTI plan support the execution of Fortum’s strategic
priorities to deliver clean energy reliably, drive decarbonisation in industries and to transform
and develop. The measures are also in line with the company’s ambitious environmental targets.
The relative Total Shareholder Return (TSR) is measured relative to the peer group comprising
selected European utility companies. The other performance measures are based on the
increase in the share of long-term customer power purchase agreements (PPA) as part of
hedging, and the sustainability measures are based on the development of a pipeline of
renewable energy for future optionality, and emission reduction targets aligned with SBTi. The
rewards related to the 2025–2027 LTI plan will be paid in the spring 2028, assuming that the
performance targets are achieved. The 2025–2027 LTI plan will comprise a maximum number of
approximately 110 participants, including the members of the Fortum Leadership Team. The
Board of Directors also decided to commence the 2025–2027 restricted share (RS) plan as a
supplement to the LTI programme and reserve shares that potentially will be delivered in the
spring 2028. The maximum number of shares of the plan that may be delivered as a reward is
expected to be approximately 1,000,000 shares for the 2025–2027 LTI plan and 100,000 shares
for the 2025–2027 RS plan.
Outlook
In the near term, the ongoing disruption of the energy sector is impacted by geopolitical
tensions, the general negative economic outlook with high inflation and interest rates,
tightening regulations and volatile commodity markets. In addition, in the short-term, price
elasticity to counter high electricity prices has an impact on power consumption.
In the long term, electricity is expected to continue to gain a significantly higher share of total
energy consumption. The electricity demand growth rate will largely be determined by classic
drivers, such as macroeconomic and demographic development, but also increasingly by
decarbonisation of energy-intensive industrial, transport and heating sectors through direct
electrification and green hydrogen.
Hedging
At the end of 2024, approximately 75% of the Generation segment’s estimated Nordic power
sales volume was hedged at 42 EUR/MWh for 2025, and approximately 45% at 41 EUR/MWh for
2026. Fortum’s hedge ratios and prices comprise its outright nuclear, hydro and wind generation
volumes. The current outright portfolio amounts to approximately 47 TWh. The reported hedge
ratios are based on the hedges and power generation forecasts of the Generation segment.
In February 2024, Fortum set a strategic target to have a hedged share of rolling 10-year
outright generation volume of more than 20% by the end of 2026. The achievement of this target
is updated once a year in connection with the Group’s full-year results. At the end of 2024, the
hedged share of the rolling 10-year outright generation volume was approximately 18%.
The reported hedge ratios may vary significantly, depending on Fortum’s actions on the
electricity derivatives markets. Hedges are mainly financial contracts, most of which are
electricity derivatives quoted on the power futures exchange and traded either on the futures
exchange or with bilateral counterparties. As an additional liquidity risk mitigation measure,
Fortum has mainly been hedging with bilateral agreements, and the exposure on the futures
exchange has been clearly lower during recent years. Fortum continues to utilise dual channels
for its hedging: trading on the futures exchange, depending on the market liquidity and financial
optimisation, and through bilateral arrangements.
19
Generation
The Generation segment’s achieved Nordic power price typically depends on factors such as
hedge ratios, hedge prices, spot prices, availability and utilisation of Fortum’s flexible generation
portfolio, as well as currency fluctuations. The annual outright portfolio in hydro, nuclear and
wind generation amounts to approximately 47 TWh, an increase of approximately 2 TWh from
the previously guided 45 TWh, due to the commissioning of Olkiluoto nuclear power plant’s third
unit and the Pjelax wind farm in Finland.
The split of Fortum’s blended price based on its price area exposure of the normalised outright
generation portfolio is approximately: Finland 46%, Sweden SE3 37% and Sweden SE2 17%. The
volumes depend on various criteria such as outages, hydrology and other market dynamics.
Excluding the potential effects from changes in the power generation mix, a 1 EUR/MWh change
in the Generation segment’s achieved Nordic power price will result in an approximately EUR 47
million change in the segment’s annual comparable operating profit.
Fortum’s achieved power price includes operations in the physical and financial commodity
markets, as well as the optimisation premium of Fortum’s outright generation portfolio. The
annual optimisation premium included in the achieved power price is estimated to be in the
range of 6–8 EUR/MWh, depending on overall market conditions, level of volatility and market
prices for electricity and environmental value products. In 2024, Fortum's optimisation premium
was 8.7 EUR/MWh.
In Sweden, the regular update of the property tax values occurring every six years was
concluded. The outcome for Fortum is that the annual property tax in Sweden will increase by
approximately EUR 30 million from the year 2025. The new run-rate is effective until and
including 2030.
Efficiency Improvement Programme
Fortum targets to reduce its annual fixed costs by EUR 100 million (excluding inflation) gradually
until the end of 2025 with a full run-rate from the beginning of 2026. The reduction of EUR 100
million corresponds to some 10% of the Group’s fixed cost base for the year 2022. The
divestments in Circular Solutions, mainly Fortum’s recycling and waste business, reduces the
Group’s fixed cost base by approximately EUR 150 million from 2025. In 2024, Fortum
implemented actions that reduced the recurring fixed cost base by more than EUR 60 million.
Fortum estimates that the new run-rate for its fixed cost base in 2026 will be approximately EUR
850 million excluding the increase in the Swedish property tax from 2025. Simultaneously,
Fortum has already in 2024 taken actions to build preparedness for future growth which
consumed development costs of more than EUR 50 million, i.e. renewables development, site
development, build-up of the commercial organisation and the hydrogen pilot project.
During 2024, cost-saving initiatives were ongoing across all business units and enabling
functions. The efficiency improvement measures included reduction in the use of external
services, insourcing of certain activities, re-designing and optimising IT services, and improving
internal processes to increase efficiency and streamline the organisation. Change negotiations
initiated in January in the Consumer Solutions segment and the IT unit were concluded in March.
These negotiations resulted in a total of approximately 70 redundancies in these units. In
addition, the merger of Fortum Markets and Telge Energi creates personnel synergies in the
Consumer Solutions segment of approximately 80 FTEs with full effect from the first quarter of
2025. The cost savings from the synergies will be approximately EUR 8 million in 2025.
Income taxation
The comparable effective income tax rate for Fortum is estimated to be in the range of 18–20%
for 2025–2027. Fortum’s comparable effective tax rate is impacted by the weight of the
comparable profit in different jurisdictions and differences in standard nominal tax rates in
these jurisdictions. The tax rate guidance excludes items affecting comparability.
Capital expenditure
Fortum's capital expenditure for 2025–2027, including maintenance but excluding acquisitions,
is expected to be approximately EUR 1.4 billion, of which annual growth capital expenditure is
expected to be EUR 150–300 million and annual maintenance capital expenditure EUR 250
million. Depending on the general market development and investment environment, new
investment decisions may be made.
Legal actions
On 22 October, Fortum announced that it has initiated legal proceedings before a Dutch civil
court against PAO Forward Energy (formerly known as PAO Fortum). The proceedings concern
intercompany loans of approximately EUR 600 million granted to PAO Fortum. The claim,
including interest and default interest, amounts to approximately EUR 800 million. The final
amount will depend on the RUB/EUR foreign exchange rate and amount of due interest.
On 10 October, Fortum announced that Fortum and Vestas had reached a settlement in a
commercial dispute between the companies. The dispute concerned deliveries of equipment for
wind parks in Russia for which Fortum had made advance payments to Vestas. The financial
impact of the settlement was recorded as items affecting comparability in 2024. With the
settlement agreement, the previously commenced International Chamber of Commerce
arbitration process has been terminated.
On 20 June, the Belgian Supreme Court ruled in favour of Fortum in connection with Fortum's
income tax assessments in Belgium for the year 2008. The decision concerns Fortum's Belgian
20
financing company, Fortum EIF NV, which provided internal financing to a Swedish group
company to finance an acquisition in Russia. The amount of additional tax claimed for 2008 is
EUR 36 million. The tax has been paid and recognised as a receivable and it was repaid to
Fortum during 2024. In addition, Fortum received EUR 19 million pre-tax in interest income,
which was recorded as financial items in 2024. The decision is final and this is the last open year
in Fortum's Belgian tax audits. The previous court ruling was made in Fortum’s favour in 2022.
On 27 February, Fortum announced that it had initiated arbitration proceedings against the
Russian Federation and will claim compensation for the unlawful expropriation of its assets in
order to protect its legal position and shareholder rights. The commencement of arbitration
proceedings follows the Russian Federation’s violations of its investment treaty obligations
under the Bilateral Investment Treaties that Russia has with the Netherlands and Sweden.
See also Financial statements Note 37 Legal actions and official proceedings
Events after the balance sheet date
There have been no material events after the balance sheet date.
21
Risk management
Risk management framework and objectives
The Group Risk Policy provides a basis for the risk management framework for Fortum, the
purpose of which is to support business in managing risks effectively and to ensure compliance
with relevant regulations. The Group Risk Policy describes the main features of Fortum’s risk
management systems which consists of principles, processes and responsibilities for managing
risks which, if materialise, may have a material negative impact on Fortum’s current or future
business operations, reputation, employees, the environment or third parties.
The risk management systems have been designed to support Fortum’s Board of Directors,
Audit and Risk Committee, Fortum’s Leadership Team as well as the operative business in
fulfilling their duties in relation to risk management. The objectives of the risk management
systems are to:
• Support Fortum’s Board of Directors and Fortum Leadership Team (FLT) in the development of
the Group strategy,
• Support Fortum in strategy execution,
• Support Fortum in achieving agreed targets within the defined risk appetite so that Fortum’s
ability to meet financial commitments and maintain a strong investment grade rating of at
least BBB is not compromised,
• Ensure the understanding of Fortum’s material risks, opportunities and uncertainties
• Support the prevention of accidents, incidents and adverse impacts of Fortum’s operations on
employees or third parties (including health and safety, human and labour rights), the
environment, Fortum’s assets or reputation.
Risk management organisation
Fortum’s Board of Directors approves the Group Risk Policy, and the President and CEO
approves Fortum’s risk management instructions covering enterprise risks, commodity market
risks, counterparty and credit risks and liquidity risks applicable for all of Fortum.
Fortum’s Business Units and Enabling Functions issue risk manuals and guidelines, as needed,
which detail how the Group Risk Policy and relevant risk management instructions are
implemented within their organisations.
Corporate risk policy structure
Corporate risk policy structure.svg
Risk governance
The main principle is that risks are managed at source, meaning that each manager is
responsible for managing risks that arise within their business operations. For each risk, risk
owners are assigned to ensure that appropriate mitigation actions are taken to respond to
the risk.
Fortum’s Audit and Risk Committee (ARC) is responsible for monitoring the efficiency of the
company’s risk management systems, and for annually reviewing the Group Risk Policy and the
Group’s material risks, opportunities and uncertainties. Corporate Risk, an independent control
function headed by the Vice President, Risk reporting to the CFO, provides instructions,
methods and tools which support the business in running an efficient risk management process.
Corporate Risk is responsible for assessing and reporting on the maturity of risk management in
the organisation and for monitoring and reporting of Fortum’s material risk exposures to
FLT Risk Committee, FLT, the ARC and the Board of Directors.
22
Principle of continuous improvement
The risk management framework is developed in accordance with the principle of continuous
improvement, aiming at an optimised and continuously developing risk management process.
The maturity level of risk management in the organisation is evaluated annually, and Corporate
Risk determines goals for the development of risk management based on the results of the
assessment.
In accordance with Fortum's values, the importance of risk management is raised by increasing
the personnel's risk awareness and highlighting the positive features of risk-aware decision-
making. 
Risk management process
Risk management process.svg
Fortum's risk management process consists of four main sub-processes; identification,
assessment, response and control. The risk management process is linked to strategy and
capital allocation, target setting and long-term forecasting and is an integrated part of
operational and business management including investment processes and project
management.
The risk management process is designed to support effective risk management and to ensure
that risks are regularly monitored and followed-up. Identification is regularly carried out
according to a structured process which includes analysis of root causes of the risk and
consequences if the risk materialises. Risks are assessed in terms of impact and likelihood.
Impact is assessed not only in monetary terms in relation to forecasted earnings and/or cash
flows, but also in terms of impact to health and safety, social, the environment and Fortum’s
reputation, where relevant. Risk responses can be to accept, avoid, mitigate or transfer the risk.
Risk control processes and procedures, which include validating, monitoring, aggregating and
reporting risks, are designed to ensure compliance with relevant external regulations and
recommendations, as well as with internal policies, instructions, manuals and guidelines. This
includes controls to ensure that risk exposures remain within approved risk appetite thresholds,
limits and mandates which are defined for financial risks. These risk appetite thresholds includes
cash liquidity, commodity market, and credit risk thresholds as well as balance sheet metrics.
Risk environment
The global landscape has experienced a further escalation of conflict and increasing geopolitical
uncertainty. Several regional and territorial disputes have worsened, increasing instability and
insecurity in energy-producing regions, potentially disrupting energy supply chains and raising
concerns about energy security.
Russia’s attack on Ukraine in February 2022 severely impacted Fortum’s businesses. A number
of geopolitical risks have realised, while other risks remain on an elevated level as a result of the
ongoing Russian aggression. Following the unlawful seizure by the Russian authorities and loss
of control of the Russian operations in spring 2023, the Russian assets were fully written down,
deconsolidated and discontinued. Fortum sent notices of dispute to the Russian Federation in
order to protect its legal position and shareholder interests. In February 2024, Fortum initiated
legal proceedings against the Russian Federation due to the violations of international
investment treaty protection. A further escalation of the war may increase the risk of hostile
actions by the Russian Federation against foreign companies. This could have severe
implications, such as an increased risk of sabotage, including direct physical or cyber-attacks
on, for example, energy infrastructure in Fortum’s operating countries. The current geopolitical
uncertainty has also intensified the trend of nationalistic policies and protectionism which may
lead to further trade restrictions or sanctions, which, in turn, could affect the demand for
Fortum’s products and services, production capabilities, asset values and access to financing.
The EU, US and UK have implemented a broad range of sanctions on Russia, the scope of which
may be further increased. The unpredictable nature of sanctions remains a risk for Fortum,
despite having lost control of the Russian business.
Fortum continues to be exposed to a number of financial, operational, strategic and
sustainability-related risks both directly and indirectly through its subsidiaries, associated
companies, and joint ventures. The associated companies and joint ventures have their own risk
management systems. The principal associated companies and joint ventures are Teollisuuden
Voima Oyj, Forsmarks Kraftgrupp AB, OKG AB and Kemijoki Oy. For more information about
these indirect risk exposures, please see each respective company’s annual report.
23
Fortum is also exposed to climate-related transition risks and physical risks. The identified
physical risks are generally found in the operational risk category, whereas transition risks are
generally part of the strategic risk category.
Fortum's_risks.svg
Strategic risks
Fortum’s strategy, launched in March 2023, was developed partly in order to reduce the Group’s
strategic business risks. With Fortum’s core business consisting mainly of outright generation
assets in the Nordics, the Nordic power price exposure remains the single largest key driver and
financial risk for Fortum. It is a key priority for Fortum to mitigate this market risk, including
managing the related credit and liquidity risks from hedging this exposure. The main strategic
risks are that the business and/or regulatory environment develop in ways that have not been
foreseen and prepared for.
The current geopolitical uncertainty continues to pose material operational and business risks
for Fortum as the owner and operator of power and heat generation in the Nordics and Poland.
Future energy market, regulation and climate scenarios, as well as scenarios for how the current
geopolitical situation develops, including the impact of these to Fortum’s existing and potential
new businesses, are regularly updated and used in the development of the strategy.
Risks which could hinder Fortum in executing its strategy are assessed and reported as part of
regular strategy reviews.
Business environment
Fortum operates in a global business environment, with main operational focus in the Nordic
countries, and is therefore exposed to political and other risks which affect the macroeconomic
development and consumer behaviour in the markets where Fortum operates.
The current geopolitical situation has raised a risk that, although unlikely, the war in the Ukraine
could escalate further to our core markets including Finland and Sweden, the consequences of
which are difficult to envisage. For example, it would cause an increase in the risk of sabotage or
even direct attacks towards Fortum’s or national critical energy facilities or infrastructure. In an
extreme scenario, this might lead to a situation where the state of Finland or Sweden would call
for an emergency act to take control over the energy sector, which would mean that Fortum
would lose operational control of its business for an unknown period.
The current geopolitical uncertainty has intensified the trend of nationalistic policies and
protectionism which may lead to further trade restrictions or sanctions, which, in turn, could
affect the demand for Fortum’s products and services, production capabilities, asset values and
access to financing. Fortum continuously monitors how the business environment develops in its
operating countries in order to be able to react quickly to market shifts and changes in
consumer behaviour.
Investment and acquisition risks
Fortum is continuously assessing its’ business portfolio and evaluates opportunities for
acquisitions, investments and divestments. Even if Fortum is able to identify candidates for
acquisition, divestment or investment, it may be difficult to complete transactions. Lack of
competition and potential restrictions on sale of certain assets by foreign owners or other
restrictions may make it difficult to complete divestments or may result in lower than expected
value received. Financial constraints, competition for acquisitions or greenfield investments
could limit Fortum's ability to grow or could raise the prices and make them less attractive
to Fortum.
Risks related to acquisitions, divestments and investments are managed as part of the
investment process of Fortum Group. The Investment Manual includes requirements for risk
identification, assessment and action plans for mitigating identified risks before investment
24
decisions are made. It also sets requirements to follow-up risks in projects during the
implementation phase. Risks in large investments are mitigated through contract structures and
through transferring risks to insurance markets. Risk assessments of partners are performed
before entering into joint ventures or other material partnership contractual agreements.
Energy and climate policy and regulation risks
The energy sector is heavily influenced by EU-level and national energy and climate policies and
regulations. Fortum’s strategy has been developed based on scenarios of the future
development of the regulatory environment in both existing and potential new businesses and
markets. The overall complexity and possible regulatory changes in the various operating
countries pose a risk if Fortum is not able to identify, anticipate and manage those changes
efficiently.
Fortum maintains an active dialogue with different policymakers and legislators involved in the
development of laws, policies and regulations in order to manage these risks and to proactively
contribute to the development of the energy and climate policy and regulatory framework in line
with Fortum’s strategic objectives.
EU and Nordics
National policies in the jurisdictions in which Fortum operates vary considerably when it comes
to, for example, taxation, granting of permits, subsidies and market model, meaning that Fortum
has to manage risks related to both EU regulation and national regulation in each of the
countries in which it operates.
Key risks related to the future development of energy and climate policies and regulatory
framework development are listed below.
• Reaching the established (EU and national) decarbonisation targets requires that all low-
carbon energy production technologies are treated equally in legislation, and that there is
political acceptance for them. While we see that there is currently a broader acceptance for
nuclear, especially in the Nordics, there is still a risk that some technologies are preferred for
reasons other than for their CO2 footprint for example in financing schemes, leading to an
uneven situation between different production forms.
• Growing acceptability issues relating to various energy forms and energy technologies create
uncertainty and risks for planned investments. Increasing sustainability requirements, e.g., in
the context of the EU Nature Restoration Regulation or EU Water Framework Directive, could
have unforeseen negative consequences for the energy system, in particular for hydro and
wind power and power grids. In the context of the EU Taxonomy Regulation, the initial
inclusion of Fortum’s core technologies such as hydro and nuclear power in the scope of the
legislation was a positive development to ensure access to capital markets and future
investments. However, the criteria for these technologies remains ambiguous and stricter
than for other low-carbon or renewable technologies. In 2024, the European Commission was
assessing the need to update the regulation on sustainable finance, potentially leading to
changes in the classification in the coming years. This assessment process brings both
opportunities and risks. On the one hand, the classification may evolve in the direction of
Fortum's core technologies or open up new economic opportunities, but it may also lead to a
politicized debate, for example on the status of nuclear power as a transitional activity, and an
increase in NGO activity.
• National investment schemes and selective support systems for new renewable energy
production may lower the profitability of incumbent electricity production and lead to market
distortions because of increased grid costs since producers pay a large part of total grid costs.
Fortum may suffer also from lower electricity prices since, all else equal, production that
otherwise would not be profitable will come online. There is also a risk that the lack of Nordic
power grid capacity buildout continues to keep high or even increases price area differences
and lowers Fortum earnings and asset values in low price areas.
• Tightening emission standards, restrictions or taxation of waste incineration and increasing
tax burden on heating fuels can also negatively impact Fortum’s targeted earnings in
the future.
• The increased geopolitical uncertainty and fears of escalation of other conflicts may impact
power and other commodity prices and volatility, especially in case of disturbances to other
sources of power or gas supply. In general, price volatility is expected to continue also with the
increasing share of intermittent generation and the occasionally re-emerging concerns over
security of energy supply.
The inter-linkage of these issues create uncertainty as changes in policies in one area could
undermine the effects of policy changes in other areas.
Technology risks
Fortum’s strategy may include investing in new or not yet commercially viable technologies,
such as hydrogen production, which will support the transition towards a future low-carbon
economy as well as developing renewable energy concepts and innovative solutions for its
customers. There are risks inherent in investing in new technologies including if and when these
will become economically viable and protecting intellectual property rights. Technology risks are
managed by assessing and monitoring the viability of new technology throughout the
development cycle and selectively developing and investing in projects together with our
partners.
Sustainability risks
Sustainability is an integral part of Fortum’s strategy. Fortum gives balanced consideration to
environmental, social and governance aspects. Changes in laws, regulations and the business
environment, including the views of our main stakeholder, can pose a risk if not identified and
managed effectively. In order to identify and manage these risks, Fortum follows and respects a
number of international mandatory and voluntary standards and guidelines in the area of
25
sustainability and the reporting of material risks and opportunities. Fortum engages with
stakeholders annually to identify the most material topics, collaborates with non-governmental
organisations and has established internal policies and instructions on responsible business
conduct. For further information on sustainability risks, see Sustainability statement.
Environmental risks
Operating power and heat generation plants and circular economy services involves the usage,
storage and transportation of fuels and materials, including hazardous waste, which can have
adverse impacts on the environment and expose personnel, contractors and third parties to
safety risks. Assessment of environmental risks and preparedness to operate in exceptional and
emergency situations follows legislative requirements as well as the requirements in the
environmental management standard (ISO 14001).
Management of climate-related risks, just like other sustainability risks, is integrated into
Fortum’s risk management framework and follows the same governance and processes as other
material risks, uncertainties and opportunities. Risks are regularly identified and assessed
through a structured process. Risk owners are assigned to manage the risks which are regularly
reported and followed up in various management teams and expert forums.
Climate-related risks
Mitigating climate change, adapting to it and driving the transition to a low-carbon economy is
an integral part of Fortum’s strategy. As a result, Fortum has committed to ambitious climate
targets.
Fortum has in place a specific review of key climate-related risks conducted by a group of
experts from selected functions. These risks are reported to the FLT and the ARC as part of the
annual review of material risks and uncertainties.
Climate-related risks are divided into two categories: transition risks and physical risks. The
identified physical risks are generally found in the operational risk category, whereas transition
risks are generally part of the strategic risk category.
For more information on material climate-related risks and opportunities, see section 2.2.2
Material impacts, risks and opportunities for climate change in the sustainability statement.
Transition risks
Fortum’s strategy is to a large extent built on taking advantage of the opportunities and
successfully mitigating the risks associated with the transition to a low-carbon economy. The
transition to a low-carbon economy poses a number of strategic and operative risks related to
changes in energy and climate policy and regulation, technology development and the business
environment in which Fortum operates. Climate change may impact external market conditions
which, in turn, can impact Fortum’s financial and operational performance. Supply, demand and
the prices achieved for Fortum’s products can be affected by a wide range of factors including
political developments and consumer preferences for low-carbon energy. Additionally, Fortum’s
brand and reputation can be negatively impacted by changes in stakeholder perception about
the company’s ability to deliver on its strategy.
The key risks related to climate policy and regulation include national climate policies or steering
mechanisms that exceed EU targets for greenhouse gas emission reduction, renewable energy
production and energy efficiency. This can lead to overlapping or inefficient mechanisms, such
as diluting the EU emissions trading system (ETS), tighter restrictions on incineration and
burning of various fuels, and a more regulated electricity market. Fortum favours clear criteria
for capacity remuneration in case such mechanisms are implemented. Additionally, increased
demand flexibility is needed to cope with the expected increase in intermittent
renewable production.
The transition to a low-carbon economy also poses risks if there emerge new, disruptive
technologies that create cheap sources of flexibility or storage in the energy market.
Additionally, if there is an accelerated decline in the cost of renewable energy, it could decrease
the value of existing conventional power and heat generation assets. Fortum continuously
monitors technology developments and selectively invests in innovative technologies.
Additionally, there is a risk of increasing activity by NGOs which could affect key stakeholder
perception. In order to mitigate this risk, Fortum focuses on the sustainability impacts of
strategy and business decisions, communicating transparently about strategy implementation
to key stakeholders and ensuring a broad base of investors and flexibility in financing.
Physical risks
Fortum’s entities are required to identify and assess their assets’ resilience towards different
acute and chronic physical climate-related risks within different Intergovernmental Panel on
Climate Change (IPCC) climate scenarios and create adaptation plans for the most material
risks. For example, climate change scenarios are considered in long-term dam safety
investments so that extreme flooding situations can be managed.
Fortum’s operations and assets are exposed to external events, the frequency and magnitude of
which may increase as a result of climate change. Changes in precipitation, inflows and
temperatures and extreme weather events may affect power production as well as bioenergy
supply and availability. Intense storms with, for example, flash floods could increase the risk of
dam breaches as well as cause local damages and production outages. Warmer weather may
also lead to a need for new cooling or process water sources and extreme warm and dry summer
periods could result in forest fires which could potentially damage assets or lead to grid outages
restricting power supply. Fortum adapts its operations to the changing climate and takes it into
consideration in production and maintenance planning and in evaluating growth and
investment projects.
26
Climate change may affect the demand and supply of energy products due to changing weather
patterns. This could lead to, e.g., lower and more volatile electricity and gas prices which
negatively affect the revenues of power generation assets. Warmer weather may also impact
the demand for heating to a larger extent than currently expected.
Social risks
Social risks and opportunities are identified in relation to own workforce, workers in the value
chain, affected communities as well as consumers and end-users. They may relate to various
topics like human and labour rights, health and safety, and privacy. Social and human rights risks
related to the supply chain, are evaluated through counterparty risk assessments, country risk
assessments, supplier qualifications as well as internal and external audits.
Fortum strives to be a safe workplace for the employees, contractors and service providers who
work for the company. Health and safety is considered as an important strategic and operational
topic. Assessment of the occupational health and safety risks is based on requirements in the
operational health and safety standard (ISO 45001) applying to risks related to occupational
health and safety and how to operate in emergency situations.
Governance risks
Fortum’s operations are subject to laws, rules and regulations set forth by the relevant
authorities, exchanges and other regulatory bodies in all markets in which Fortum operates.
Fortum aims to comply with all relevant laws, rules and regulations, but the ability to operate in
certain countries may be affected by future changes to local laws and regulations.
Fortum promotes transparent and compliant corporate culture through its values, the Code of
Conduct and the implementation of these through, e.g., communication and training. Fortum’s
Code of Conduct and Supplier Code of Conduct stress the importance of business ethics for all
employees, contractors and partners. Zero tolerance for corruption and bribery is highlighted in
the Code of Conduct and Supplier Code of Conduct. In addition, separate instructions and
guidelines have been created to address e.g. anti-bribery, compliance management,
safeguarding company assets, conflict of interest, anti-money laundering, economic sanctions
and competition law. Regarding economic sanctions, Fortum has, with internal and external
experts, developed monitoring to follow applicable sanction regimes (EU, US, UK and UN) and
relevant internal controls have been integrated to business processes to ensure compliance.
Fortum has procedures for anti-corruption including prevention, oversight, reporting and
enforcement based on the requirements prescribed in international legislation. The Supplier
Code of Conduct, which is based on the ten principles of the United Nations Global Compact,
defines sustainability, business ethics, human rights and environmental requirements for
suppliers of goods and services.
Since Fortum trades financial instruments, it is exposed to risks arising from the implementation
and amendment of financial market regulations and directives, such as the European Market
Infrastructure Regulation (EMIR) and the Regulation on Energy Market Integrity and
Transparency (REMIT).
Fortum’s operations in a variety of jurisdictions expose Fortum to various legal risks. These
mainly comprise risks arising from threatened or pending legal proceedings regarding contract
and price adjustments in connection with long-term supply or sales contracts, licensing matters,
liabilities arising from acquired companies, as well as supplier disputes or disputes related to
investment agreements.
Fortum systematically identifies, assesses, mitigates and reports compliance risks, including
risks related to business ethics, as part of the compliance management and risk management
processes. Effective internal controls are a key mitigating activity and have been implemented
to prevent the possibilities of unauthorised activities or non-compliance with relevant policies
and instructions. Furthermore, continuous training and communication play a key role in
increasing the awareness and ensuring the understanding of the importance of business ethics
and compliance in the organisation. Regular trainings include mandatory e-learnings to ensure
coverage throughout the organisation.
Financial risks
Commodity market and fuel risks
Fortum’s business is exposed to fluctuations in prices and availability of commodities used in the
production, transmission and sale of energy products. The main exposures are toward electricity
prices and volumes, prices and volumes of emission allowances, and prices and availability of
fuels. Fortum hedges its exposure to commodity market risks in order to improve predictability
of future result by reducing volatility in earnings while ensuring cash flow risk is at an acceptable
level. For further information on hedge ratios, sensitivities and outstanding derivatives
contracts, see Note 4 Financial risk management.
Electricity price and volume risks
Fortum is exposed to electricity market price movements and volume changes mainly through
its power and heat generation.
In the Nordics and Poland, market prices and the amount of profitable production exhibit
significant variation due to weather conditions, outage patterns in production and transmission
lines, CO2 allowance prices, fuel prices, as well as the amount of electricity demand.
During 2024 electricity hedges in the Nordics continued shifting from the exchanges such as
Nasdaq Commodities, ICE, the European Energy Exchange to contracts traded directly with
counterparties active in the energy markets. Bilateral derivative contracts and correlated
products are enabling mitigation of derivates market liquidity risk which has been increasing
somewhat during latter years. Provisioning the volumes between the exchanges and bilateral
27
counterparties is balancing the cash liquidity and credit risk. The ability to efficiently implement
hedging strategies is dependent on a well-functioning and liquid derivatives market.
In Poland TGE (Towarowa Giełda Energii S.A. i.e., Polish commodity exchange) is the main
channel where the electricity and gas prices are hedged.
The hedging risk management objectives are set within the defined risk appetite in order to
lessen the financial impacts of stressed conditions. Hedging strategies are continuously
evaluated based on changes in commodity market prices, the hydrological balance and other
relevant parameters. Hedging of the Generation segment’s power sales is performed in EUR on
a Nordic level, covering both Finland and Sweden, and the currency component of these hedges
in the Swedish entity is currently not hedged.
Emission and environmental value risks
The EU has an emissions trading scheme in place to reduce the amount of CO2 emissions. In
addition to the emissions trading schemes, there are other trading schemes in environmental
values in place in Sweden, Norway and Poland. Part of Fortum’s power and heat generation is
subject to requirements of these schemes.
The main factors influencing the prices of CO2 emission allowances and other environmental
values are political decisions, and the supply and demand balance. Fortum hedges its exposure
to these prices and volumes through the use of CO2 derivatives and environmental certificates.
Fuel prices and volume risks
Power and heat generation requires use of fuels that are purchased on global or local markets.
The main fuels used by Fortum are uranium, waste-derived fuels, coal, biomass fuels, and
natural gas.
The main risk factor for fuels that are traded on global markets, such as coal and natural gas, is
the uncertainty in price. Prices are largely affected by demand and supply imbalances that can
be caused by, for example, increased demand growth in developing countries, natural disasters
or supply curtailments/fuel purchase constraints from political, social or labour unrest.
For fuels that are sourced on local or regional markets, such as biofuels, the volume risk in terms
of availability of the raw material of appropriate quality is more significant as there may be a
limited number of suppliers. The exposure to fuel price risk is mitigated through fixed-price
physical delivery contracts as well as derivative contracts. During 2024 Fortum succeeded
securing a reliable Western nuclear fuel supply to the Loviisa Nuclear power plant. Fortum
continues to monitor the nuclear fuel supply situation closely and prepares adapted mitigation
measures to minimise the negative impacts to Fortum.
Liquidity and refinancing risks
Fortum's business is exposed to liquidity and refinancing risks primarily through the need to
finance business operations, including margining and collaterals issued for hedging activities.
Trading derivative financial instruments exposes the Group to a liquidity risk associated with
having to provide financial collaterals like cash or bank guarantees. Trading over-the-counter
(OTC) also exposes the Group to liquidity risk in case of a counterparty default. A default could
trigger a termination payment in cases where the net market value of the bilateral contracts is
positive for the counterparty. Higher and more volatile commodity prices increase the net
margining payments toward clearing houses and clearing banks which are mainly settled in
cash. Fortum mitigates this risk by entering into OTC derivatives contracts directly with bilateral
counterparties without margining requirements. However, under Credit Support Annex
agreements some foreign exchange- and interest rate hedges are collateralized and mark to
market changes are impacting liquidity immediately. For non-collateralised foreign exchange
deals the cash flow impact is realised when deals are maturing and forwarded, typically during
next 12 months period. The exposure to margining requirements and termination payments is
continuously assessed and monitored so that adequate liquidity is available to cover expected
future cash collateral required for margining. There are strict limits in place which ensure that
there are sufficient liquid funds and credit lines available to cover margining requirements,
termination payments, working capital changes as well as contingent collaterals in extreme
market scenarios.
Fortum maintains a diversified financing structure in terms of debt maturity profile and debt
instruments. Liquidity and refinancing risks are managed through a combination of cash
positions and committed credit facility agreements. The credit risk of cash positions has been
mitigated by diversifying the deposits to high-credit quality financial institutions and issuers of
corporate debt.
Fortum is targeting to have a solid investment grade rating of at least BBB. A lowering of credit
ratings, in particular to below investment grade level (BB+ or below) could trigger
counterparties’ rights to demand additional cash or non-cash collateral. A possible downgrade
to below investment grade level would affect the access to the capital markets and increase the
cost of new financing.
Currency and interest rate risks
Fortum’s debt portfolio consists of interest-bearing liabilities and derivatives on a fixed- and
floating-rate basis with differing maturity profiles. Fortum is exposed to cash flow risk from
changes in interest rates mainly from interest-bearing liabilities, liquid funds and derivatives on
a fixed- and floating rate basis. Fortum manages the interest rate exposure through a duration
target of the gross loan portfolio, excluding leasing liabilities and provisions, and cash flow at
risk limit of the net loan portfolio. Fortum uses different types of financing contracts and interest
rate derivative contracts to manage the interest rate exposure and evaluates and develops the
strategies in order to find an optimal balance between risk and financing cost.
28
Fortum has cash flows, assets and liabilities in currencies other than EUR and is therefore
exposed to fluctuations in exchange rates. Currency exposures are divided into transaction
exposures (foreign exchange exposures relating to contracted cash flows and balance sheet
items where changes in exchange rates will have an impact on earnings and cash flows) and
translation exposure (foreign exchange exposure that arises when profits and balance sheets in
foreign entities are consolidated at Group level).
The main translation exposure is toward EUR/Swedish Krona (SEK) arising from Fortum's
extensive operations in Sweden. Fluctuations of the SEK, PLN and NOK against the EUR could
have an adverse effect on future results and equity when consolidating and translating results
and net investments to foreign subsidiaries and associated companies into euros. Translation
exposures in Fortum are generally not hedged as the majority of these assets are considered to
be long-term strategic holdings.
Transaction exposure arises mainly from physical and financial trading of commodities, existing
and new investments, external and internal financing and shareholder loans within Fortum.
Fortum hedges major transaction exposures on a local level in the reporting currency of each
legal entity in order to avoid exchange differences in the profit and loss statement. An exception
is the Generation segment’s hedging of power sales in Sweden where the currency component
is not hedged.
A centralised treasury function coordinates currency risk management and executes external
hedges consisting of currency derivative contracts which are matched against the underlying
future cash flow according to maturity. Derivatives are used exclusively to hedge existing
foreign exchange risks, not for proprietary trading.
Counterparty and credit risks
Fortum is exposed to counterparty risk whenever there is a contractual arrangement with an
external counterparty including customers, suppliers, partners, banks, clearing houses and
trading counterparties.
Credit risk exposures related to hedging arise through physical delivery contracts and financial
derivative instruments. These credit risk exposures are volatile and include both the
replacement risk and the settlement risk. Exchange-traded derivatives are cleared through
central clearing parties (CCPs) or through clearing banks, while OTC derivative contracts are
concluded directly with a number of different counterparties including energy wholesalers and
retailers, utilities, trading companies, industrial end-users and financial institutions active in the
financial and energy markets. Due to Fortum’s net short position in Nordic power hedges, credit
exposure tends to increase with the value of hedges if Nordic power prices decrease.
Due to the Group’s financing needs and management of liquidity, Fortum has counterparty
credit exposure toward a number of banks and financial institutions. The majority of the
exposure is toward Fortum's key relationship banks, which are highly creditworthy institutions.
Credit risk exposures relating to customers and suppliers are spread across a wide range of
industrial counterparties, energy companies, government and municipal entities, utilities, small
businesses, housing associations and private individuals over a range of geographic regions.
Fortum has routines and processes to identify, assess and control credit exposure. Credit
checks are performed before entering or renewing commercial obligations and exposure limits
are set for larger individual counterparties as well as for counterparty groups. Creditworthiness
is monitored through the use of internal and external sources so that mitigating actions can be
taken when needed. Mitigating actions include demanding collateral, such as guarantees,
managing contract terms and contract length and the use of netting agreements.
Tax risk
Tax risk refers to the risk associated with clarities, errors, failure in controls or disagreements in
the interpretation of applicable tax laws and tax authority guidance. It equally relates to
challenges and risks with changes in operations, long-term profitability or changes in tax laws or
fiscal policies in one or multiple countries which could result in increased charges or financial
loss. Fortum operates in a number of countries and is therefore exposed to these events in
multiple countries. These risks may materialise through a tax authority-initiated process
followed by a legal process in one or multiple jurisdictions with a court confirming valid
interpretation of local or EU law or tax treaties. In case multiple countries are involved, it may
result in a mutual agreement process defining the final stand in the case. A legal process may
result in a tax assessment of deductibility, income recognition or applicable tax rate on
withholding in a business transaction. Risk may materialise also by a revaluation of tax-related
assets, so called deferred tax assets, and liabilities due to changes in operations or tax law. The
risks may equally realise through national or EU fiscal policies that are drafted without
considering the impacts. Tax burden may be unexpected and not in line with the set objective.
Mitigating actions are seeking tax predictability for the business operations in all our operating
countries. In order to do so, Fortum has, in line with its commitment to responsible tax
management principles, a tax governance guidance approved by the Board of Directors setting
the frame for tax management. As concrete risk mitigation actions, Fortum targets to simplify
legal structures, move towards digital solutions and manage data management and compliance,
seek strategic clearance from tax authorities, improve transparency towards key stakeholders,
participate in developing responsible regulation by contributing to public hearings and clarify
accountabilities and responsibilities of duties. Further information is provided in the Tax
Footprint statement issued by Fortum annually.
Operational risks
Fortum’s business activities include energy generation, storage and control of operations, as
well as the construction, modernisation, maintenance and decommissioning of power plants or
other energy-related industrial facilities. Any unwanted operational event (which could be
29
caused by, e.g., technical failure, human or process error, natural disaster, sabotage, failure of
key suppliers, or terrorist attack) can endanger personnel safety or lead to negative monetary,
safety, environmental, reputational or physical damage, business interruptions, project delays
and possible third-party liability. The associated costs can be high, especially in Fortum’s largest
units and projects. 
Systems and process risks
People risks include an inability to attract and retain the right competences, risks due to the loss
of special skills, risk of failure in cultural renewal and risks due to errors on the part of employees
who have not been sufficiently trained or who are not sufficiently qualified.
In order to reduce people risks, Fortum invests in the development and distribution of skills and
succession planning. In addition, the existing compensation system for employees is regularly
reviewed and adjusted.
Process risks are mainly caused by design failures or human errors. Mitigation includes
digitalisation, process automation, testing and education. Process-related risks are assessed
and controls for the most relevant risks are defined and implemented as part of the internal
controls framework. Risk management of the IT systems is based on an IT Service Lifecycle
Model and related processes and practices have been developed using reference frameworks
such as Control Objectives for Information Technologies (COBIT) and Information Technology
Infrastucture Library (ITIL). Business continuity plans are in place for business-critical processes.
Property, plant and equipment
Operational events at power and heat generation, fuel handling and recycling and waste
facilities can lead to environmental and physical damages, business interruption, clean-up costs
and third-party liabilities. Property, plant and equipment risks are primarily managed through
condition monitoring and maintenance planning. In addition, Fortum's industrial assets are
covered by insurance policies for property damage and business interruption risks which
mitigates the impact of internal and external events, should they occur.
Hydro power
Fortum has a large number of hydro power plants and dams in the Nordics. A dam breach is a
serious accident with the threat of significant damage downstream. A long-term programme is
in place for improving the surveillance of the condition of dams, and for securing the discharge
capacity in extreme flood situations. Third-party liabilities from dam failures are strictly the plant
owner’s responsibility. Together with other hydro power producers, Fortum has a shared dam
liability insurance programme in place that covers Finnish and Swedish dam failure liabilities up
to SEK 10 billion (approximately EUR 1 billion).
Nuclear power
Fortum owns and operates the Loviisa nuclear power plant and has minority interests in one
Finnish and two Swedish operational nuclear power companies. Fortum is a minority-
shareholder in Voimaosakeyhtiö SF, which is a co-owner in the terminated Fennovoima-project.
Any severe accident or nuclear release in nuclear power plants could lead to high costs,
environmental damages and third-party liabilities. Both in Finland and Sweden, the assessment
and improvement of nuclear safety is a continuous process performed under the supervision of
the Radiation and Nuclear Safety Authority of Finland (STUK) in Finland and the Swedish
Radiation Safety Authority (SSM) in Sweden.
Owners of nuclear facilities in Finland and Sweden have statutory liabilities for damages
resulting from accidents occurring in those nuclear facilities and for accidents involving any
radioactive substance connected to the operation of those facilities. Third-party liability related
to nuclear accidents is strictly under the plant operator’s responsibility and must be covered by
insurance or other financial cover. In Sweden and Finland, legislation requires that operators of
nuclear power plants need to have a liability insurance or other financial cover in the amount
equivalent to EUR 1.2 billion per site.
In both Finland and Sweden, the future costs of the final disposal of spent fuel, the management
of low and intermediate-level radioactive waste and the decommissioning of the radioactive
part of the nuclear power plant are provided for by a state-established fund to which nuclear
power plant operators contribute. Contributions to these funds should be sufficient to fully cover
expected costs for handling all the produced radioactive waste, but the possibility exists that
future costs could exceed currently estimated fund provisions. If this were to occur, Fortum
would be responsible for any such excess costs in relation to its share of operations and assets.
The current geopolitical situation has raised a new risk of nuclear fuel shortage in the Loviisa
power plant. In order to mitigate this risk, Fortum has signed an agreement with Westinghouse
Electric Company to have a parallel supplier for the current Russian supplier of nuclear fuel.
Asset project risks
Fortum’s business activities involve construction, modernisation, maintenance and
decommissioning of power plants and other energy industry facilities. There is a risk that
construction costs exceed planned costs or that construction delays occur as a result of
regulatory or permit issues or failure of key suppliers, being unable to obtain permits. Asset
projects also face environmental, health and safety risks. Asset project risks may realise both for
Fortum’s own assets projects, or projects carried out through joint ventures or associated
companies.
30
Managing asset project risk is an integral part of every project. Project managers are
responsible for ensuring that project-related risks which may lead to delays, increased costs,
negative impacts to the environment or which could jeopardise the health and safety of
personnel and contractors are identified and assessed, and that actions are taken to minimise
such risks. 
Cyber and information security risks
Fortum’s business operations and customer-related services are dependent on well-functioning
IT, communications and information management systems and processes. Due to the nature of
the business, large amounts of data are processed, often in real-time, and used for operating
critical infrastructure, including energy production, hedging decisions, serving customers and in
internal and external communication and reporting.
Like all operators of critical infrastructure, Fortum is increasingly exposed to cyber security risks,
including risks related to information technology (IT) and operational technology (OT) systems,
digitalisation and privacy. Also, physical threats like sabotage against Fortum’s assets are
possible and can have material impacts. Due to the ongoing war in Ukraine, the overall
probability of cyber and other security risks remains elevated.
The focus in 2024 has been on improving preparedness and resiliency, covering cyber, physical
security and organizational (management) aspects. Evolving security landscape is continuously
monitored in cooperation with relevant authorities. Fortum is preparing for EU level security
legislation which will be implemented during 2025.
31
Fortum share and shareholders
Fortum Corporation’s shares have been listed on Nasdaq Helsinki since 18 December 1998. The
trading code is FORTUM. Fortum Corporation’s shares are in the Finnish book entry system
maintained by Euroclear Finland Ltd which also maintains the official share register of Fortum
Corporation.
Share key figures
EUR
2024
2023
2022
Earnings per share, total Fortum
1.30
-2.31
-2.72
Earnings per share, continuing operations
1.30
1.68
2.34
Comparable earnings per share, total Fortum
1.00
1.32
-1.11
Comparable earnings per share, continuing operations
1.00
1.28
1.21
Cash flow per share, total Fortum
1.55
2.03
-9.86
Cash flow per share, continuing operations
1.55
1.91
1.93
Equity per share
10.11
9.40
8.55
Dividend per share 1)
0.90
2)
1.15
0.91
Special dividend per share
0.50
2)
—
—
Total dividend per share
1.40
2)
1.15
0.91
Payout ratio, %
90
2)
90
75
Total payout ratio, %
140
2)
90
75
Dividend yield, %
10.4
2)
8.8
5.9
1)Dividend according to dividend policy.
2) Board of Directors’ proposal for the planned Annual General Meeting 1 April 2025.
For full set of share key figures, see the section Key figures in the Financial Statements.
Share price performance and volumes
Fortum’s share price has depreciated approximately 39% during the last five years, while
Dow Jones European Utility Index has increased 6%. During the same period Nasdaq Helsinki
Cap index has increased 2%. During 2024 Fortum’s share price appreciated approximately 3%,
while Dow Jones European Utility index decreased approximately 3% and Nasdaq Helsinki Cap
index decreased approximately 4%.
In 2024, a total of 433.4 million (2023: 412.3) Fortum Corporation shares, totalling EUR 5,694
million, were traded on Nasdaq Helsinki. The highest quotation of Fortum Corporation shares
during 2024 was EUR 15.01, the lowest EUR 10.83, and the volume-weighted average EUR 13.14.
The closing quotation on the last trading day of the year 2024 was EUR 13.52 (2023: 13.06).
Fortum’s market capitalisation, calculated using the closing quotation of the last trading day of
the year, was EUR 12,127 million (2023: 11,718).
In addition to the Nasdaq Helsinki, Fortum shares were traded on several alternative market
places, for example at Cboe and Turquoise, and on the OTC market. During 2024, approximately
69% (2023: 78%) of Fortum’s shares were traded on markets other than the Nasdaq Helsinki Ltd.
Share capital
Fortum Corporation has one class of shares. By the end of 2024, a total of 897,264,465 shares
(2023: 897,264,465) had been issued. Each share entitles the holder to one vote at the
Annual General Meeting. All shares entitle holders to an equal dividend. At the end of 2024
Fortum Corporation’s share capital, paid in its entirety and entered in the trade register, was
EUR 3,046,185,953.00.
Shareholders
At the end of 2024 the Finnish State owned 51.26% of the company’s shares. The Finnish
Parliament has authorised the Government to reduce the Finnish State’s holding in Fortum
Corporation to no less than 50.1% of the share capital and voting rights.
The proportion of nominee registrations and direct foreign shareholders was 22.0%
(2023: 22.9%).
32
Shareholders, 31 December 2024
Shareholders
No. of shares
Holding %
Finnish State
459,902,988
51.26
Ilmarinen Mutual Pension Insurance Company
20,270,000
2.26
Varma Mutual Pension Insurance Company
15,768,981
1.76
Elo Mutual Pension Insurance Company
11,189,000
1.25
The Finnish Social Insurance Institution
6,430,896
0.72
Municipality of Kurikka
6,203,500
0.69
The State Pension Fund
5,500,000
0.61
OP-Henkivakuutus Ltd.
2,447,496
0.27
Nordea Pro Finland Fund
1,783,938
0.20
Harri Sakari Liuksiala
1,650,000
0.18
Seligson & Co OMX Helsinki 25 Exchange Traded Fund (ETF)
1,347,882
0.15
Nordea Fennia Fund
1,336,833
0.15
Evli Finland Select Fund
1,080,000
0.12
OP-Finland Index Fund
1,061,138
0.12
Nominee registrations and direct foreign ownership
197,056,728
21.96
Other
164,235,085
18.30
Total
897,264,465
100.00
By shareholder category
% of total amount
of shares
Finnish shareholders
Corporations
2.02
Financial and insurance institutions
2.19
General government
58.76
Non-profit organisations
0.94
Households
14.13
Non-Finnish shareholders
21.96
Total
100.00
Breakdown of share ownership, 31 December 2024
Number of shares owned
No. of share-
holders
% of share-
holders
No. of shares
% of total
amount of
shares
1–100
93,644
41.75
4,027,054
0.45
101–500
77,233
34.43
20,024,978
2.23
501–1,000
25,553
11.39
18,995,756
2.12
1,001–10,000
26,414
11.78
68,831,831
7.67
10,001–100,000
1,371
0.61
29,202,342
3.25
100,001–1,000,000
80
0.04
23,269,998
2.59
1,000,001–10,000,000
11
0.00
29,891,830
3.33
over 10,000,000
4
0.00
507,130,969
56.52
224,310
100.00
701,374,758
78.17
In the joint book-entry account and in special
accounts on 31 December
596
0.00
Nominee registrations
195,889,111
21.83
Total
897,264,465
100.00
Management shareholding 31 December 2024
At the end of 2024, the President and CEO and other members of the Fortum Executive
Management owned a total of 229,623 shares (2023: 223,463) representing approximately
0.03% (2023: 0.02%) of the total shares in the company.
A full description of the shareholdings and interests in long-term incentive schemes of the
President and CEO and other members of the Fortum Executive Management is shown in
Note 10.
Authorisations from the Annual General Meeting
2024
In 2024, the Annual General Meeting decided to authorise the Board of Directors to decide on
the repurchase and disposal of the company’s own shares up to 20,000,000 shares, which
corresponded to approximately 2.23% of all the shares in the company. Only the unrestricted
equity of the company can be used to repurchase own shares on the basis of the authorisation.
These authorisations are effective until the next Annual General Meeting and, in any event, for
a period no longer than 18 months. These authorisations had not been used as per
17 February 2025.
33
Dividend policy
The dividend policy ensures that shareholders receive a fair remuneration for their entrusted
capital, supported by the company’s long-term strategy. At the beginning of March 2023, the
Fortum Board of Directors resolved on Fortum’s new strategy including a new dividend policy –
a payout ratio of 60-90% of comparable EPS. At the beginning of February 2024 the Fortum
Board of Directors resolved on clarifications to the dividend policy; the payout ratio will be used
so that the upper end of the range of the pay-out ratio is applied in situations with a strong
balance sheet and low investments, while the lower end of the range would be applied with high
leverage and/or significant investments and high capital expenditure.
Dividend distribution proposal
The distributable funds of Fortum Corporation as at 31 December 2024 amounted to EUR
7,772,555,740, including the profit for the financial period 2024 of EUR 1,406,772,244.
The Company’s liquidity is good, and the dividend proposed by the Board of Directors will not
compromise the Company’s liquidity.
The Board of Directors proposes that a dividend of EUR 1.40 per share be paid for the financial
period 2024. The proposed dividend of EUR 1.40 per share comprises EUR 0.90 which
corresponds to 90% payout of the Group’s comparable earnings per share (EPS) of EUR 1.00 and
EUR 0.50 as a special dividend.
In Fortum’s dividend policy, the payout ratio is 60–90% of the Group’s comparable EPS. In
situations with strong balance sheet and low investments, Fortum applies the upper end of the
range of the payout ratio. Through the proposed special dividend Fortum activates its balance
sheet and rectifies its current very strong liquidity position.
Based on the number of shares registered as at 10 February 2025, the total amount of dividend
would be EUR 1,256,170,251. The Board of Directors proposes that the remaining part of the
distributable funds be retained in the unrestricted equity of the Company.
The dividend would be paid to shareholders who on the record date of the dividend payment 3
April 2025 are recorded in the Company’s shareholders’ register held by Euroclear Finland Oy.
The Board of Directors proposes that the dividend be paid on 10 April 2025.
The Annual General Meeting is planned to take place on 1 April 2025.
Share quotations, index 100 = quote on 2 January 2020
share_quotations.svg
Market capitalisation, EUR billion
market_capitalisation.svg
Total shareholder return, EUR
Fortum_total_shareholder_return.svg
34
Sustainability statement
1 General information
1.1 Introduction
1.1.1 This is Fortum
Fortum is the third-largest power generator in the Nordics and its power generation has one of
the lowest specific CO2 emissions in Europe. Fortum is committed to being a safe and inspiring
workplace for its employees.
Fortum’s purpose is to power a world where people, businesses and nature thrive together,
generating and reliably delivering clean energy at scale, and helping industries to decarbonise
their processes and societies to reach their climate targets in balance with nature. The core
operations in the Nordics comprise efficient, low-carbon power generation based on hydro and
nuclear, as well as the reliable supply of electricity and district heat to private and business
customers in Finland and Poland.
Fortum’s strategy is based on three strategic priorities:
• Deliver reliable clean energy
• Drive decarbonisation in industries
• Transform and develop
The first priority is to deliver reliable clean energy, when needed and at scale, to customers
and the Nordic energy system. This means that Fortum will continue to develop best-in-class
operations for efficiency, flexibility and optimisation. Fortum will also continue to decarbonise
and modernise those operations that still create emissions, backed by environmental
commitments.
The second priority is to drive decarbonisation and growth in Nordic industries. This is
achieved by partnering with strategic customers to reduce their carbon footprint and
developing and building low-carbon power. Fortum makes selective profitable growth
investments and explores opportunities in clean hydrogen and new nuclear.
The third strategic priority describes how Fortum is going to develop and transform to
succeed. The aim is to restructure the organisation to fit the current strategy and purpose,
build an efficient operating model, and develop company culture and leadership to support
strategy execution.
1.1.2 Highlights in 2024
Emission reduction targets validated by SBTi
Fortum had its near- and long-term company-
wide emission reduction targets validated by
the Science Based Targets initiative (SBTi).
The targets are aligned with the level of
emission reduction needed to limit global
warming to 1.5°C.
Transition plan for climate change mitigation
Fortum has created a transition plan for
climate change mitigation, aligned with the
emission reduction targets validated by SBTi.
Coal exit in Poland proceeding
Fortum announced the decarbonisation of the
Czestochowa CHP plant in Poland to take
place during 2024–2026. The annual direct
CO2 emission reduction is approximately
175,000 t.
Coal exit acceleration
Coal exit in Fortum's Heating and Cooling
business in Finland took place one year earlier
than expected, marking an important
milestone for Espoo Clean Heat, which
gradually reduces Fortum's annual Scope 1
GHG emissions by approximately
400 thousand tCO2-eq.
Biodiversity
Fortum started working with wind, solar and
heat storage facility case studies in Finland
and Sweden, aiming to reach the corporate-
level No Net Loss biodiversity target from
2030 onwards.
Investment in renewable energy
The 56-turbine Pjelax wind farm, a joint
project between Fortum and Helen, started
production in May. Finland’s third-largest
wind farm will produce more than 1 TWh of
wind power annually.
Promoting employee engagement
Employee engagement score, measuring
employee experience and commitment,
increased to 7.5.
Safety
Over 550 persons completed the Safety and
Security Leadership programme, exceeding
the targeted 460 persons.
35
1.1.3 Material sustainability topics
Fortum has identified the following material sustainability topics:
IconClimateAndResources-2.svg
Environmental
IconSocietyAndPeople.svg
Social
IconCollaborationPartners-3.svg
Business
conduct
• Climate change
• Pollution
• Water and marine resources
• Biodiversity
• Resource use and circular
economy
• Own workforce
• Value chain workers
• Affected communities
• Corruption and bribery
• Management of relationships
with suppliers
Environmental sustainability
Climate change is one of the global megatrends that is driving changes in Fortum’s operating
environment. The European Union is aiming for climate neutrality by 2050 and is committed to a
55% reduction in greenhouse gas emissions by 2030. The international Science Based Targets
initiative (SBTi) has validated Fortum’s near-term and long-term science-based emission
reduction targets, and the net-zero science-based target by 2040.
Energy production generates emissions to the environment. Fortum controls emissions to air,
water and soil caused by its operations and aims to reduce environmental impacts by fuel
switching and by using technological solutions and flue gas cleaning technologies.
Water availability is a prerequisite for Fortum’s operations where cooling water, in particular, is
withdrawn from the sea and discharged back at nuclear and other condensing power plants.
Fortum also has hydropower operations where water runs through the hydropower turbines with
no significant changes in water quality and quantity. Fortum’s responsibility for water use is
related not only to water volume and availability, but also to its quality and to the
aquatic habitat.
The degradation of biodiversity is one of the greatest environmental problems globally. All
business operations, including Fortum’s, have an impact on biodiversity. Fortum acknowledges
the need to identify and take responsibility for its impacts on and dependencies related to
biodiversity and ecosystem services.
A transition towards circular economy is necessary to ensure availability of natural resources,
and it is essential for fighting climate change. Fortum produces conventional non-hazardous and
hazardous waste in its power plants and other own operations. In addition to conventional
industrial waste, radioactive waste is produced at own and co-owned nuclear power plants.
Social sustainability
Social sustainability at Fortum focuses particularly on employees, workers in the value chain and
communities around Fortum’s sites. The health and safety of employees and value chain workers
working at Fortum’s sites is a top priority. Fortum also systematically develops the human rights
due diligence process further to address potential negative impacts, as well as collaborates with
communities and organisations at global, national and local levels through the Corporate Social
Responsibility programme.
Business conduct
Fortum believes there is a clear connection between high standards of ethical business
practices and excellent financial results. Fortum obeys the law, embraces the spirit of integrity,
and upholds ethical business conduct wherever it operates.
1.1.4 Fortum’s sustainability targets
In 2024, Fortum complemented its sustainability targets to reflect material sustainability topics
identified through the double materiality assessment. See 1.4 Double materiality assessment.
Fortum’s climate, biodiversity and safety targets are now complemented by targets related to
pollution, own workforce, workers in the value chain and business conduct. All targets are
group-level targets aiming to increase production and deliver low-carbon and reliable energy for
customers in the Nordics and Poland. Targets for water are common targets with pollution and
biodiversity. These common targets are separately stated. 
The international Science Based Targets initiative (SBTi) has validated Fortum’s near- and long-
term science-based emission reduction targets and science-based net-zero target by 2040. The
targets are aligned with the level of emission reduction needed to limit global warming to 1.5°C.
Fortum’s commitment to SBTi targets is a significant milestone on Fortum’s sustainability
journey, in the core of the company’s strategy and a vital part of its execution. At the same time,
the group-level carbon neutrality target was removed as the SBTi targets were set.
Fortum’s sustainability targets and performance against these targets are presented in
tables below:
36
Targets for climate change
Included in performance
incentive schemes 1)
Measure
Base year
Base-year
value 2)
Target year
2024
Change compared to
base year, %
Reduce Scope 1 and 2 GHG emissions from electricity and heat generation by 85% per MWh 3, 4)
•
tCO2-eq/MWh
2023
0.024
2030
0.018
-23
Reduce Scope 1 and 3 GHG emissions from fuel- and energy-related activities covering all sold
electricity by 69% per MWh 3, 4)
•
tCO2-eq/MWh
2023
0.13
2030
0.11
-12
Reduce absolute Scope 3 GHG emissions from use of sold products for sold fossil fuels by 55% 3)
•
tCO2-eq
2023
949,779
2033
1,266,451
33
Reduce Scope 1 and 2 GHG emissions from electricity and heat generation by 90% per MWh 4, 5)
tCO2-eq/MWh
2023
0.024
2040
0.018
-23
Reduce Scope 1 and 3 GHG emissions from fuel- and energy-related activities covering all sold
electricity by 94% per MWh 4, 5)
tCO2-eq/MWh
2023
0.13
2040
0.11
-12
Reduce absolute Scope 3 GHG emissions from fuel- and energy-related activities by 90% 5)
tCO2-eq
2023
1,005,947
2040
962,775
-4
Reduce absolute Scope 3 GHG emissions from use of sold products for sold fossil fuels by 90% 5)
tCO2-eq
2023
949,779
2040
1,266,451
33
Specific emissions of <20 gCO₂/kWh for total energy production
gCO₂/kWh
N/A
N/A
2028
26
N/A
Specific emissions of <10 gCO₂/kWh for power generation
gCO₂/kWh
N/A
N/A
2028
11
N/A
Coal exit in the company’s own operations 6)
GW
N/A
N/A
2027
1.0
N/A
1) For more information on targets included in incentive schemes, see 1.5.2 Sustainability-related performance in incentive schemes.
2) Base-year values exclude the recycling and waste business divested in November 2024. Base-year values have not been assured.
3)Near-term science-based emission reduction target.
4)The target boundary includes land-related emissions and removals from bioenergy feedstocks.
5)Long-term science-based emission reduction target.
6)Coal-based capacity for power and heat. Coal-based power and heat production, as well as coal share of sales is presented in 2.2.8 Metrics for climate change.
Fortum's Scope 1 and Scope 2 greenhouse gas intensity for electricity and heat production
decreased by 0.005 tCO2-eq/MWh (23%) in 2024 due to actions taken to reduce coal use.
Additionally, Scope 3 emissions from sold electricity decreased due to the increased sales of
GoO-certified electricity, which also led to a decrease in the electricity sales intensity by 0.02
tCO2-eq/MWh (12%). The volume of gas sales increased, resulting in a 0.3 Mt CO2-eq (33%)
increase in greenhouse gas emissions from the use of sold gas. Emissions from sold heat
decreased by 0.04 Mt CO2-eq (4%). For information on actions in 2024, see 2.2.7 Actions and
resources for climate change, and for information on GHG emissions, see 2.2.8 Metrics for
climate change.
Targets for pollution
Included in performance
incentive schemes 1)
Measure
Base year
Base-year
value
Target year
2024
Change
compared to
base year, %
20% reduction in nitrogen oxides (NOx) emissions 2)
kg
2023
1,546,865
2030
1,378,084
-11
40% reduction in sulphur dioxide (SO2) emissions 2)
kg
2023
849,418
2030
616,604
-27
No major environmental incidents and no major non-compliance cases 3)
Number of incidents
N/A
N/A
Annual
1
N/A
1) For more information on targets included in incentive schemes, see 1.5.2 Sustainability-related performance in incentive schemes.
2) Base-year and current-year values exclude the recycling and waste business divested in November 2024. Base-year values have not been assured.
3)Common target with water, see 2.4.4 Targets for water.
Fortum's NOx and SO2 emissions decreased in 2024 compared to 2023. The most significant
changes were due to the closure of the Suomenoja coal-fired CHP plant and the reduction of
coal use at the Meri-Pori condensing power plant, resulting in a reduction of approximately 170
tons of NOx emissions and 230 tons of SO2 emissions. The major environmental incident target
was not met in 2024. There was one major environmental incident, a major leakage of
extinguishing water into the environment in connection with a large fire in an energy waste
bunker in Turku, Finland. For information on actions in 2024, see 2.3.5 Actions and resources for
pollution.
37
Targets for biodiversity
In addition to the above targets for climate change and pollution, Fortum has set the following
targets related to material impacts on biodiversity:
• No net loss of biodiversity from existing and new operations in Scope 1 and 2 from 2030
onwards, excluding all aquatic impacts. In ongoing operations, the main lever for the target is
to reduce Scope 1 GHG emissions in line with the climate transition plan, see 2.2.6 Transition
plan for climate change mitigation. In 2024, Scope 1 GHG emissions decreased due to actions
taken to reduce coal use. See section 2.2.5 Targets for climate change.
• 50% reduction in dynamic terrestrial impacts in upstream Scope 3 by 2030 compared to base
year 2021. The main lever for the target is to reduce Scope 3 GHG emissions in line with the
climate transition plan. In 2024, Scope 3 GHG emissions decreased due to the increased sales
of GoO certified electricity. However, the impact is expected to have increased from the
previous assessment, mainly due to the increased sales of electricity.
• Commitment to continue local initiatives and participate in the development of a science-
based methodology to assess the aquatic impacts of hydropower. This is a common target
with water. In 2024, Fortum continued to implement local initiatives, especially in hydropower;
as well as worked on developing a science-based methodology to assess the aquatic impacts
of hydropower, e.g., through case studies. See 2.5.6 Actions and resources for biodiversity.
Targets for own workforce
Included in performance
incentive schemes 1)
Measure
Target year
Target value
2024
No severe or fatal injuries 2)
Number of incidents
Annual
0
2
Total Recordable Injury Frequency (TRIF) <1.0 2)
•
TRIF
2030
<1.0
4.0
Execution rate for Safety improvement plans
•
%
2024
60
90
Improve employee engagement clearly above benchmark level 3)
Score
2030
7.7 4)
7.5 5)
Commitment to ensure that all employees receive an adequate wage and to not have unreasoned or
unexplained gender pay gaps
Proceeding as planned,
Yes/No
Annual
N/A
Yes
1) For more information on targets included in incentive schemes, see 1.5.2 Sustainability-related performance in incentive schemes.
2)Target includes own employees and value chain workers working at Fortum’s sites (contractors' employees).
3)Industry benchmark for ‘Energy and Utilities’ sector.
4)Industry benchmark value 2024.
5)Excludes the recycling and waste business divested in November 2024.
Fortum's safety priorities to continuously improve safety culture progressed well in 2024.
Completion of overall safety actions exceeded the target level. One of the actions was
participation in the Safety and Security Leadership programme which aims to continuously
improve safety culture. Over 550 persons were trained in the programme in 2024. Fortum's
safety performance also had a positive trend, reflected in the TRIF value, despite two severe
injuries. Reaching the target level requires continuous work on safety culture and learning from
incidents and near-misses. See 3.2.5 Taking action and tracking effectiveness of actions on own
workforce.
The employee engagement score has improved and the results show that employees appreciate
the supportive work environment and good team spirit. To support the improvement, Fortum
pays particular attention to the engagement drivers, see 3.2.5 Taking action and tracking
effectiveness of actions on own workforce.
38
Targets for workers in the value chain
Included in performance
incentive schemes 1)
Measure
Target year
Target value
2024
Supplier qualification rate 2)
%
Annual
85
81
Enhance supply chain due diligence by developing supplier evaluation and supply chain data
management
Proceeding as planned,
Yes/No
2026
N/A
Yes
1) For more information on targets included in incentive schemes, see 1.5.2 Sustainability-related performance in incentive schemes.
2)Spend from qualified suppliers divided by total procurement spend in scope of qualification process. The recycling and waste business is included until the date of disposal.
The supplier qualification rate target was not met due to expired qualifications. Fortum's
supplier qualification requires re-qualification after three years, which was done inconsistently.
Fortum will continue the supplier qualification process, focusing on re-qualifications and
monitoring through key performance indicators. The target to enhance supply chain due
diligence is proceeding according to plan, with development needs and potential data
management solutions defined in 2024, see 3.3.5 Taking action and tracking effectiveness of
actions on workers in the value chain.
Targets for business conduct
Included in performance
incentive schemes 1)
Measure
Target year
Target value
2024
No incidents of corruption and bribery
Number of incidents
Annual
0
0
1)For more information on targets included in incentive schemes, see 1.5.2 Sustainability-related performance in incentive schemes.
In 2024, there were no confirmed incidents of corruption or bribery.
39
1.2 Basis of preparation
1.2.1 Basis of preparation
Fortum Group’s sustainability statement for the year ended 31 December 2024 has been
prepared in accordance with the European Union’s Corporate Sustainability Reporting Directive
(CSRD) and the related European Sustainability Reporting Standards (ESRS). This sustainability
statement includes EU Taxonomy disclosures, which are prepared in accordance with the
EU Taxonomy Regulation and implementing delegated acts. The sustainability statement has
not been published in digital format, tagged with XBRL sustainability taxonomy, in accordance
with chapter 7, section 22, subsection 1, paragraph 2 of the Finnish Accounting Act as it has not
been possible for companies preparing sustainability statements to follow the Finnish legislation
due to the lack of ESEF regulation or other EU legislation to guide implementation. 
Sustainability matters disclosed in this sustainability statement are based on the material topics
identified through the double materiality assessment, which was performed in accordance with
ESRS 1 General Requirements. See 1.4 Double materiality assessment.
Sustainability audit firm and Fortum’s financial statements auditor, Deloitte Oy, has provided an
independent auditor’s limited assurance report on this sustainability statement in accordance
with ISAE 3000 (Revised). Comparative information has not been assured. If not separately
disclosed, disclosures in this sustainability statement have not been assured by any other
external body than the assurance provider.
1.2.2 Reporting scope
Disclosures in this sustainability statement include the parent company, Fortum Oyj, and its
subsidiaries. Subsidiaries are companies over which Fortum has control.
Associated companies are entities over which the Group has significant influence but not
control, generally accompanying a shareholding of between 20% and 50% of the voting rights;
and joint ventures are arrangements in which the Group has joint control. See Note 1.3 Principles
for consolidation and Note 40 Group companies by segment. Fortum has assessed that it does
not have operational control over these companies. However, associated companies and joint
ventures are included in certain metrics as required by ESRS.
Greenhouse gas (GHG) emissions of associated companies and joint ventures that are actors in
Fortum’s value chain, mainly nuclear and hydro companies, are included in GHG emissions in
Scope 3 category 1 or category 3. Emissions from these companies are disclosed based on the
proportion of electricity purchased from these companies, or the proportion of services used, as
appropriate. Other associated companies and joint ventures that are not actors in Fortum’s
value chain are included in GHG emissions Scope 3 category 15 disclosures. See 2.2.8 Metrics for
climate change, Reporting principles.
If not otherwise stated, associated companies and joint ventures are currently not included in
disclosures on policies, actions and targets. If not otherwise stated, other value chain actors are
excluded from the disclosures as Fortum is utilising the exemption for phased-in disclosures
(ESRS 1-10). This does not apply to suppliers of goods and services, which are included in the
disclosures in sections 3.3 Workers in the value chain and 4.5 Management of relationships with
suppliers.
The scope of EU Taxonomy reporting is described in 2.7.1 Introduction to EU Taxonomy.
Fortum concluded the sale of its recycling and waste business on 29 November 2024 and its
turbine and generator services on 31 December 2024. Disclosures in this sustainability
statement include these businesses until the date of disposal, if not otherwise stated. The
recycling and waste business is not included in the 2024 double materiality assessment,
ensuring a focused reporting scope and a relevant assessment aligned with Fortum's current
operational scope.
Fortum has not used the option to omit specific information relating to intellectual property,
know-how or results of innovation, nor the exemption to disclose impeding developments or
matters in the course of negotiation.
1.2.3 Time horizons
In the double materiality assessment, Fortum is using time horizons that deviate from the
medium- and long-term time horizons defined in ESRS 1 General Requirements section 6.4. The
reason for the deviation is that the time horizons have been aligned with time horizons used in
Fortum’s financial planning process. The medium-term time horizon is from one to three years,
and the long-term time horizon is more than three years.
1.2.4 Use of estimates, judgement and forward-looking information
The preparation of the sustainability statement requires management to make estimates and
assumptions that affect both the qualitative and quantitative information given; on the other
hand, certain ESRS disclosure requirements ask for forward-looking information, which is
inherently uncertain. Estimates, judgement and forward-looking information are regularly
evaluated and are based on historical experience and other factors, including expectations of
future events that are believed to be reasonable under the circumstances. 
The areas where management’s estimates and judgement are most critical are:
• Judgement and forward-looking information used in the identification and scoring of
sustainability impacts, risks and opportunities, as well as in determining the threshold for
material topics. See 1.4 Double materiality assessment.
• Estimates and forward-looking information used in valuing the anticipated financial effects
from sustainability risks and opportunities. See 1.4 Double materiality assessment.
40
• Estimations used in GHG Scope 3 emission calculations. See 2.2.8 Metrics for climate change,
Reporting principles.
1.2.5 Exemptions for phased-in disclosures
In 2024, Fortum is taking advantage of the following exemptions listed in ESRS 1 section 10 and
Appendix C: 
• Comparative information will not be disclosed in the first year of reporting. This exemption
does not apply to the EU Taxonomy disclosures.
• Anticipated financial effects from material risks and opportunities will not be disclosed
(ESRS 2 SBM-3 and ESRS E1-9). Qualitative information will be provided in 2025, quantitative at
the latest in 2027.
• The following information on own workforce (ESRS S1) will not be disclosed: characteristics of
non-employee workers (S1-7), as well as cases of work-related ill-health and number of days
lost to injuries, accidents, fatalities and work-related ill health, and health and safety
information on non-employees (S1-14). These disclosures will be provided in 2025. 
• As described above in section 1.2.2 Reporting scope, certain disclosures exclude value chain
actors. These disclosures will be provided at the latest in 2027. In 2024, Fortum focused on
collecting information for mandatory disclosures and decided to use the possibility to phase-in
information gathering over time. Planning for value chain-related information gathering will
commence in 2025. 
• List of significant ESRS sectors and total sales by significant ESRS sector (ESRS 2 SBM-1). The
disclosure will be given when sector-specific disclosure requirements are in force.
1.3 Strategy and business model
1.3.1 Business model and value chain
Fortum is the third-largest power generator in the Nordics, with power generation of 46.3 TWh
and heat and steam production of 4.1 TWh in 2024. In 2024, 99% of Fortum’s total power
generation originated from the company’s Nordic 45.5 TWh outright power generation, which is
based mainly on hydro, nuclear and onshore wind power. Fortum is also the largest electricity
retailer in the Nordics, with over two million customers. Furthermore, Fortum has district heating
and cooling businesses in Finland and Poland, and pilot phase hydrogen production operations.
These businesses are complemented by the electricity and gas retail business in Poland and the
battery recycling business. Fortum concluded the sale of its recycling and waste business on 29
November 2024; the related activities are excluded from Fortum’s value chain. While the
majority of operations are non-fossil, Fortum has some fossil fuel derived operations. In 2024,
the share of fossil fuels of sales was 12%, including fossil-based production and gas sales. The
share of fossil fuels of production-based sales was 6% and the share of coal of sales was 3%.
Fortum is a major economic actor in its main operating countries in the Nordics. The most
significant direct monetary flows come from sales to customers, procurement of goods and
services from suppliers, compensation to lenders, dividends to shareholders, growth and
maintenance investments, employee wages and salaries, and taxes paid. On 31 December 2024,
Fortum had 4,496 employees in 14 countries, with the majority of employees in Finland, Sweden,
Norway and Poland. See Note 6.4 Group-wide disclosures for number of employees by country.
Fortum’s strategy and business model are designed to deliver on the company’s purpose: to
power a world where people, businesses and nature thrive together. Sustainability and low-
carbon power generation are built into Fortum’s strategy. Fortum has three reportable
segments: Generation, Consumer Solutions, and Other Operations. See Note 6.1 Business and
segment structure. The target of the organisation is the successful implementation of the
company’s purpose and strategy. The business structure mirrors the key value drivers in
Fortum’s low-carbon generation portfolio, strong sales and trading capabilities, as well as
customer orientation. 
Fortum has set near- and long-term company-wide emission reduction targets in line with the
targets of the SBTi, and anchored these targets to the overall business strategy. Fortum has also
created a climate transition plan defining actions and resources towards net-zero operations.
The plan is based on existing operations and business structure, and dependent on future
development and changes in the operating environment. In addition, Fortum has set targets for
biodiversity, pollution, own workforce, workers in the value chain and business conduct. See
 1.1.4 Fortum’s sustainability targets and 2.2.6 Transition plan for climate change mitigation.
The resilience analysis steers Fortum’s strategy. In its analysis, Fortum considers a landscape of
five strategic, long-term macro scenarios in its operating environment outlook, including the
sustainability-related drive of societal focus on climate and environment, and the variable of
climate and ecosystem stability. Sustainability risk identification is based on the resilience
analysis, and assets and business activities at risk are considered in the double materiality
assessment. See 2.2.4 Resilience analysis.
The management of sustainability-related impacts, risks and opportunities and targets are
designed to support strategy execution. Fortum is continuously assessing its business portfolio
and evaluates risks and opportunities for acquisitions, investments and divestments, including
sustainability-related matters and possible trade-offs between risks and opportunities. See 1.4.2
Material impacts, risks and opportunities.
Fortum is a significant purchaser of goods and services, and aims to achieve its sustainability
targets through responsible supplier selections and close collaboration with partners. Electricity
purchased from the Nordic wholesale electricity market for retail, investments and fuel
purchases accounted for the majority of purchases. The rest consisted of other goods and
services related to operation and maintenance, as well as other functions, such as IT solutions
and professional services. Fortum uses various fuels, such as uranium 81%, waste-derived fuel
6%, coal 6%, biomass and biofuels 3%, and natural gas 2%, to produce electricity, heat and
41
steam. Percentage shares are based on the energy content of the fuel. In fuel sourcing, special
attention is paid to the origin of the fuel and to responsible production. Fortum does not buy
fossil fuels, wood pellets or biomass from Russia. These fuels mainly originate from Europe and
the US. In addition, Fortum uses land areas and large volumes of water in its power plants and
district heating networks.
Fortum has an ability to reliably deliver low-carbon energy at scale. With total energy sales of
EUR 3.2 billion in 2024, Fortum helps its customers and societies to decarbonise. Fortum follows
the availability of different energy production forms as the measure of security of supply and
has set strategic targets for fleet availability: over 90% for nuclear and 95% for hydropower. In
2024, the nuclear fleet availability was 84% and hydro availability was 97%.
Fortum’s value chain is depicted below:
Fortum_value_chain.svg
1) Uranium, coal, biomass, waste, oil, gas, waste heat
2) Contractors, equipments, professional services, O&M
3) Own operations cover: nuclear waste treatment
4) Fortum manages only heating & cooling distribution
Defined terms
Power = Electricity
Energy = Power, heating & cooling
Text in bold refers to Fortum’s own operations
1.3.2 Interests and views of stakeholders
Fortum’s way of operating responsibly includes open and regular dialogue with its stakeholders.
Collaboration with different stakeholder groups helps Fortum to understand, assess and meet
the expectations that various groups have towards the company. Several different stakeholder
surveys are conducted to systematically monitor stakeholders’ views. 
The table below presents Fortum’s stakeholders, their respective group (affected stakeholders,
users of the sustainability statement, or both), as well as the method of engagement with each
stakeholder group:
Method of engagement
Stakeholder type
Affected
stakeholders
Users of the
sustainability
statement
Meetings
and
interviews
Media
monitoring
One
Fortum
Survey
Various
targeted
surveys
Lenders, investors,
shareholders
•
•
•
•
Clients and consumers
•
•
•
•
Employees
•
•
•
Future talent
•
•
•
•
Authorities and decision
makers
•
•
•
•
Energy sector organisations
•
•
•
•
Local communities
•
•
•
•
•
Service and goods suppliers
•
•
•
•
Workers in the value chain
•
•
NGOs and trade unions
•
•
•
•
•
Media
•
•
•
Engagement with the above-mentioned stakeholders informs Fortum’s strategy and business
model in several ways, as described below.
Fortum follows public dialogue and monitors media in the countries where it operates and
participates in providing relevant information to stakeholders through different channels.
Feedback from customers drives the development of Fortum’s products and services. Interviews
and discussions held with national authorities, decision-makers and politicians help the
company to understand its industry-specific political environment and future trends. Regular
employee surveys keep Fortum alert to topical issues among its personnel, enable the company
to address grievances internally and to practice successful employee retention. Dialogue with
non-governmental organisations (NGOs) and trade unions keeps Fortum updated on topical
external sustainability concerns, challenges the company to address difficult issues, and gives
valuable external expert opinions to Fortum’s sustainability work. 
The views of suppliers of goods and services inform Fortum on issues relevant not only to the
company’s own operations, but also further along its value chain. Engagement with value chain
workers informs Fortum about the working conditions in its supply chains and supports the
company in addressing related concerns with its business partners. Membership in national and
international organisations helps to deepen Fortum’s understanding of industry- and sector-
wide stakeholder issues and their connections to Fortum’s business. Direct dialogue and surveys
with local communities around Fortum’s sites helps the company to contribute positively to the
surrounding society and to be a good corporate citizen. Active dialogue with investors and
investor coalitions, as well as frequent contact with both equity and credit research analysts at
investment banks and brokerage firms, not only helps Fortum to address the requirements of
the capital markets but, most importantly, helps the company to adequately consider investor
feedback in its continuous business development and strategic decarbonisation agenda. 
42
Fortum has an informal Advisory Council consisting of representatives from Fortum’s key
stakeholder groups in Finland, as invited by the Board of Directors. The Advisory Council aims to
advance Fortum’s businesses by facilitating the dialogue and exchange of views between
Fortum and its stakeholders.
In collaboration with third parties, Fortum annually conducts several surveys regarding
stakeholders’ expectations and opinions of the company. These surveys help Fortum to assess
and respond to stakeholder groups’ expectations and to measure the success of stakeholder
collaboration. These surveys also provide information about sustainability trends and risks. The
results are used in business planning, as well as in identifying priorities for sustainability,
including input into Fortum’s double materiality assessment. See also 1.4 Double materiality
assessment. 
The most widely disseminated stakeholder survey is the extensive One Fortum Survey, which
measures company reputation, as well as customer satisfaction and its development at different
business units. The survey is conducted annually, in the autumn, in most countries where Fortum
has operations. The views and interests of affected stakeholders regarding Fortum’s
sustainability-related impacts are shared with the administrative, management and supervisory
bodies as part of the annual process of sharing One Fortum Survey results. Thus, the results
feed into the annual corporate strategy process. They also play a role in reviewing and adjusting,
if needed, the corporate business model and the ways of operating in different business units.
Fortum also has specific methods of engaging with affected stakeholders on material
sustainability issues and hearing the views and interests of Fortum's own workforce, value chain
workers and affected communities. This engagement also addresses their human (including
labour) rights. The views and interests of own workforce, including their views on strategy, are
gathered, for example, through the Employee Voice survey and taken into account in operative
and strategic planning. The Fortum European Council (FEC) also serves as a cooperation
function for dialogue between management and employee representatives on, e.g., strategy and
information exchange on various activities (e.g. personnel motivation and wellbeing). Views and
interests of value chain workers, gathered through audits or indirect sources (e.g. external NGO
reports and surveys) inform, for example, supplier selection. Views and interests of affected
communities received through stakeholder engagement are taken into account in new project
development (e.g. site selection and landscaping) and adjusting the business model, where
possible. For more information about the methods of engaging with affected stakeholders and
how their input is taken into account in business planning and decisions, see 3.2 Own workforce,
3.3 Workers in the value chain and 3.4 Affected communities.
The table below shows Fortum’s main stakeholder surveys, their target groups, scope and
frequency:
Survey
Target group
Target countries
Frequency
One Fortum Survey
Customers
General public
Public administration
Capital markets
NGOs
Opinion leaders
Personnel
Media
Finland, Sweden, Norway,
relevant international
stakeholders
Customer satisfaction is
measured semi-annually or
annually, depending on the
customer segment.
Reputation is measured
annually.
Supplier Relationship
Management (SRM)
Survey
Suppliers of goods and
services
All operating countries
Annually
Media tracking
Media
All operating countries
Daily
Brand tracking
General public and
customers
Finland, Sweden, Norway
Continuously
Employee Voice survey
Own personnel
All operating countries
Every six months
Fortum Digital Experience
Survey
Own personnel
All operating countries
Continuously
Local acceptance of
hydropower production
Local stakeholders around
Fortum's sites
Sweden
Annually
Local nuclear acceptability
survey
Local stakeholders around
Loviisa nuclear power
plant
Finland
Annually
43
1.4 Double materiality assessment
1.4.1 Double materiality assessment process
The scope of the sustainability statement is determined through a double materiality
assessment (DMA). The double materiality assessment process follows the methodology
outlined in ESRS 1 General Requirements. The double materiality assessment is done on an
annual basis, involving relevant internal functions and business units across the Group. Impacts,
risks and opportunities are identified and assessed on a business unit level and consolidated
and analysed at Group level. The material topics are approved by the Fortum Leadership Team
(FLT) and reviewed by the Audit and Risk Committee (ARC). See also 1.5 Sustainability
governance. Internal controls related to the double materiality assessment are described in 1.5.3
Risk management and internal controls over sustainability reporting.
Fortum uses the following four-step approach for its double materiality assessment:
Step 1: Understanding value chains, business activities, industry, geographies and
dependencies
The purpose of this step is to gain an understanding of the overall context for the double
materiality assessment, including an examination of Fortum’s value chain and key stakeholders.
In the first year of reporting, this step also included identifying and reviewing existing materials
and assessments to help identify potential sources of impacts, risks and opportunities. 
The starting point of the first double materiality assessment was a detailed value chain mapping
to better understand Fortum’s operations and main product and service groups through key
business activities and dependencies stemming from geographies or relationships, covering
both upstream and downstream elements of the value chain. For more details on the results of
the value chain assessment, see 1.3.1 Business model and value chain. 
Step 1 also included the mapping of both affected stakeholders and users of the sustainability
statement with whom Fortum engages on a continuous basis. During 2024, stakeholder input
was collected for the double materiality assessment through different annual stakeholder
surveys (e.g. One Fortum Survey). After the survey results were analysed and scrutinised, the
findings were provided as input for steps 2 and 3. For more details on stakeholder engagement,
see 1.3.2 Interests and views of stakeholders.
Following the divestment of the recycling and waste business in 2024, the recycling and waste
business is not included in the 2024 double materiality assessment, ensuring a focused
reporting scope and a relevant assessment aligned with Fortum's current operational scope.
Step 2: Impact materiality – identifying and assessing impacts (inside-out)
The purpose of this step is to identify and assess both positive and negative impacts on
environmental, social and business conduct matters across Fortum’s own operations and in its
upstream and downstream value chain. The first impact assessment was initiated by revisiting
the comprehensive list of value chain activities identified in step 1 to identify direct and indirect
impacts across the value chain. This included reviewing existing due diligence materials and
other relevant internal and external materials, e.g., internal impact assessments, and using the
list of sustainability matters in ESRS 1 Application Requirement (AR) 16 as support to ensure
completeness. 
Once the list of actual and potential impacts were identified, they were classified based on the
following factors: actual or potential impact; negative or positive impact; value chain location;
time horizon; and ESRS topic, sub-topic and sub-sub-topic (the ESRS 1 AR16 list was slightly
amended by combining existing and adding some new sub-topics and sub-sub-topics to better
reflect Fortum’s business and to facilitate a more detailed analysis).
Next, to determine the severity of the identified impacts, the impacts were scored based on the
following three factors:
• Scale: how grave is the negative impact, or how beneficial is the positive impact for people or
the environment?
• Scope: how widespread is the impact, i.e., what is the extent of the environmental damage, or
the geographical perimeter, or the number of people adversely impacted?
• Irremediable character of negative impacts: whether and to what extent the negative impacts
can be remediated, i.e., by restoring the environment or affected people to their original state
or equivalent?
For potential impacts, the likelihood of occurrence was also assessed, and the final assessment
was calculated based on two parameters: severity and likelihood. For actual impacts, a likelihood
of 100% was used in the calculation. 
Step 3: Financial materiality – identifying and assessing risks and opportunities
(outside-in)
The purpose of this step is to identify and assess potential environmental, social and business
conduct topics that could trigger a negative (risk) or positive (opportunity) financial impact on
Fortum’s business. During 2024, Fortum integrated the financial materiality assessment into the
Enterprise Risk Management (ERM) process. Sustainability risks previously identified in the ERM
process on a business unit level were used as a basis for the assessment. These existing risks
were then complemented by risks and opportunities deriving from impacts identified in step 2,
dependencies on natural, human and social resources, as well as other factors, such as exposure
to climate hazards or changes in regulation that address systemic risks.
Once the risks and opportunities had been identified, they were classified based on value chain
location, financial impact type (e.g. EBITDA, cash flow), whether it is a recurring or one-time
event, as well as by ESRS topic, sub-topic and sub-sub-topic.
44
Finally, materiality of the identified risks and opportunities was assessed by scoring the
likelihood of occurrence and the financial magnitude in the short-, medium-, and long-term.
The final score for each risk and opportunity was then calculated by multiplying the potential
magnitude of financial effect by its likelihood of occurrence. 
Step 4: Determining thresholds and assessing final materiality
To conclude the double materiality assessment, impacts, risks and opportunities scored on a
business unit level were consolidated, after which they were categorised by sub-sub-topic and
score. Qualitative adjustments were made to ensure the consolidated results accurately
represent Fortum’s material impacts, risks and opportunities as a whole. Materiality thresholds
were set by considering a range of factors, including but not limited to the significance of the
impact, risk or opportunity to stakeholders, potential financial implications, and the strategic
importance of the topic. Based on these considerations, the materiality threshold for 2024 was
set at 12 on a scale of 1-25. A sustainability matter meets the double materiality criteria if it is
material either from the impact perspective or from the financial perspective, or from both.
In addition to scoring, qualitative criteria can be applied to determine material topics. These
include, e.g., strategic or stakeholder expectations. In 2024, these considerations led to a
management decision to include certain additional business conduct topics as material. See 4.2
Material impacts, risks and opportunities for business conduct.
For a list of the material disclosure requirements, see 5.1 Material disclosure requirements.
Use of judgement and forward-looking information in the double materiality
assessment
Due to the complex and often uncertain nature of sustainability issues, as well as difficulties in
accessing exact value chain data, assessing the severity, magnitude and likelihood of impacts,
risks and opportunities will always involve a certain amount of judgement. This is the case
especially for impacts, risks and opportunities beyond the first value chain tier, or further in the
future. In conducting the double materiality assessment, efforts were made to anchor the
assessment on quantitative factors, utilising existing information, assessments and processes,
where possible. Where exact data was not reasonably available, specialist knowledge and best
available information, e.g., geography and industry data, were utilised. 
An example of a situation where estimates and forward-looking information are used is in
valuing the anticipated financial effects from sustainability risks and opportunities. These values
are used in the financial materiality assessment. Financial materiality is estimated using
professional judgement and based on the most appropriate measure for the specific risk or
opportunity, such as the anticipated annual EBITDA impact, multiplied by the likelihood of
occurrence. 
Furthermore, determining the materiality thresholds involves management judgement. To
ensure relevant and accurate results, various factors, including implications for Fortum and its
stakeholders, were carefully considered in determining material topics.
Specific considerations regarding the process to identify and assess impacts, risks
and opportunities for each material topic
In addition to the general double materiality process description, the ESRS mandates a more
detailed explanation of the process used to identify and assess impacts, risks and opportunities
for each material topic. The following section outlines methodologies, input parameters, and
processes for evaluating each of these topics.
For climate change, consideration was given to sources of GHG emissions in own operations,
including upstream and the downstream value chains, across all Fortum’s key business
activities. The current volumes of GHG emissions were taken into account when identifying
impacts, risks and opportunities throughout the value chain. Furthermore, consideration was
given to all climate-related transition risks, physical risks and opportunities. Both actual and
potential transition and physical risks were considered in the resilience analysis conducted as
part of the double materiality assessment. Scenarios analysed included three different climate
change scenarios with global warming of more than 3°C, 2.5-2.8°C and 1.5-1.9°C. The resilience
analysis and climate scenarios used are further described in 2.2.4 Resilience analysis. Fortum’s
operations and assets are exposed to external events, such as changes in air and water
temperature, precipitation, and extreme weather events, the frequency and magnitude of which
may increase as a result of climate change. The identification of physical risks was conducted at
entity level, and resilience towards various acute and chronic physical climate risks was
assessed.
For pollution, consideration was given to all Fortum’s key business activities. For own
operations, sources of emissions to air, water and soil were considered based on measuring and
monitoring emissions in accordance with environmental permit requirements for each site and
local regulations. An internal chemical database was used to evaluate the quantity of
substances of concern used in own operations. 
For water and marine resources, all key business activities were taken into account. Interactions
with water, including water withdrawal, discharge and consumption were considered. The WRI
Aqueduct Water Risk Atlas was used to screen whether own operations and main known
locations of fuel sourcing are located in water-stressed areas. In addition to the WRI Aqueduct
Water Risk Atlas, Fortum used site-level basin physical risk data from the WWF Risk Filter
Suite’s Water Risk Filter tool in the assessment of physical water risks. Both the baseline
situation and future scenarios were analysed with both tools.
45
For biodiversity and ecosystems, Fortum performed a biodiversity footprint assessment (BFA),
finalised in 2023. The assessment was made by using the Global Biodiversity Score® (GBS®) tool.
The assessed impacts and dependencies on biodiversity and ecosystem services, covering
direct operations as well as the value chain, were used as base information in the double
materiality assessment. In the methodology used, the impacts and dependencies were assessed
based on datasets of ENCORE and EXIOBASE. The BFA was made by following the publicly
available, Science-Based Targets for Nature, Initial guidance for Business by Science Based
Target Network (SBTN). From the main drivers of biodiversity loss, the BFA covered interactions
with land/sea use change, direct exploitation, climate change and pollution. The methodology
used did not cover the interaction with invasive alien species. Additionally, the aquatic impact of
hydropower production was evaluated separately through an expert review and is considered a
material biodiversity impact. In addition to these assessments, the double materiality
assessment considered all of Fortum’s key business activities. Affected communities were not
consulted for the identification and assessment of biodiversity-related impacts, risks or
opportunities. For information about the assessment regarding biodiversity-sensitive areas, see
2.5.7 Metrics for biodiversity.
For resource use and circular economy, resource inflows and outflows in own operations,
including in the upstream and the downstream value chain, in all Fortum’s key business activities
were considered. The assessment was done based on site-specific data on resources used and
materials and waste produced, and it was supplemented by expert evaluations.
For own workforce, all employees were considered in the assessment. Employee feedback and
perspectives were obtained from, e.g., employee surveys and SpeakUp reports, where relevant.
Country-specific aspects were also considered, where relevant.
For value chain workers, Fortum’s upstream value chains and the procurement of different
products and services were considered in the assessment. Where exact data of the upstream
value chain beyond the first tier was not reasonably available, specialist knowledge and best
available information, e.g., industry- and country-related data and external reports and studies,
were utilised to develop understanding of vulnerable workers and the likelihood of impacts in
different supply chains.
For affected communities, Fortum's operating countries and location of plants in the areas of
indigenous communities, as well as stakeholder feedback were taken into consideration. 
For business conduct, all operating countries were considered, and previous cases of
misconduct were taken into account in the assessment. The assessment also considered
supplier relationship management practices and processes to evaluate suppliers in terms of
environmental and social sustainability. 
1.4.2 Material impacts, risks and opportunities
As a result of the double materiality assessment, Fortum has identified 34 material impacts,
risks and opportunities (IROs) covering nine out of ten ESRS topics. The table below includes a
summary of these, categorised by ESRS topic, value chain location(s), the most significant time
horizon(s), and whether it is a positive or negative impact, risk or opportunity. Each impact, risk
and opportunity has been assigned a reference number that corresponds to the impacts, risks
and opportunities in the topical sections of this sustainability statement.
All of the material impacts, risks and opportunities are covered by ESRS disclosure
requirements, as Fortum has not identified any material entity-specific topics. The material
topics are assessed on a strategic basis, and clear targets and action plans have been
developed to ensure impacts and risks are addressed. For more information on these material
impacts, risks and opportunities and how they are managed, see each topical section.
46
IRO reference
Topic
Impact, risk
or opportunity
Value chain location
Time horizon
Description
E1.1
Climate change
Negative impact
Own operations,
upstream
Long-term
Producing GHG emissions in power and heat production.
E1.2
Climate change
Negative impact
Own operations
Medium-term
Purchasing of non-renewable or uncertified electricity for own use.
E1.3
Climate change
Negative impact
Upstream
Long-term
Producing GHG emissions in the production of electricity purchased from the market and sold to end-users
unbundled with Guarantee of Origin certificates.
E1.4
Climate change
Negative impact
Across
Medium-, long- term
Producing GHG emissions in the upstream and downstream value chain (fuels, materials, components and waste).
E1.5
Climate change
Negative impact
Downstream
Long-term
Producing GHG emissions in the use of natural gas sold to customers.
E1.6
Climate change
Negative impact
Across
Long-term
Climate change impact caused by travelling and commuting.
E1.7
Climate change
Positive impact
Downstream
Short-, medium-, long-term
Helping customers to decarbonise their operations. Offering low-carbon and stable energy supply for customers'
decarbonisation needs. Providing electric vehicle charging applications to the customers supporting their own
CO2 emission reduction efforts.
E1.8
Climate change
Risk
Own operations
Long-term
Policy and legal risk: Uncertainties around regulatory development in the EU (e.g., EU ETS) affecting Fortum's
profitability.
E1.9
Climate change
Risk
Own operations
Long-term
Reputation risk: Failure to decarbonise Fortum's operations in accordance with climate targets and as requested
by stakeholders, potentially affecting market value.
E1.10
Climate change
Risk
Across
Short-, medium-, long-term
Chronic climate risk: Increased average temperatures, including water, affecting electricity, gas and heat demand,
and supply and production continuity.
E1.11
Climate change
Risk
Across
Short-, medium-, long-term
Acute climate risk: Extreme weather events such as storms or heat waves and dry spells causing e.g. forest fires
affecting power generation and transmission.
E1.12
Climate change
Opportunity
Own operations
Short-, medium-, long-term
Opportunities from increased sales resulting from decarbonising Fortum's own operations.
E1.13
Climate change
Opportunity
Across
Short-, medium-, long-term
Opportunities from increased sales resulting from increased demand for low-carbon electricity.
E2.1
Pollution
Negative impact
Own operations,
downstream
Medium-term
Air pollution due to nitrogen oxides (NOx) and sulphur dioxide (SO2) emissions produced in fuel combustion.
E2.2
Pollution
Negative impact
Own operations
Short-, medium-term
Potential impact on the environment when using Substances of Concern (SoC)/Substances of Very High Concern
(SVHC) in operations.
E2.3
Pollution
Positive impact
Own operations
Long-term
Battery metal recovery prevents SoC from ending up in the environment.
E3.1
Water and marine resources
Negative impact
Own operations
Medium-term
Water withdrawal and discharge related to power and heat production mainly for cooling purposes.
E3.2
Water and marine resources
Negative impact
Own operations
Medium-term 
Impact of hydropower production on the fluctuation range and rhythm of the water discharge and water levels in
waterways.
47
IRO reference
Topic
Impact, risk
or opportunity
Value chain location
Time horizon
Description
E4.1
Biodiversity and ecosystems
Negative impact
Own operations
Long-term
Aquatic impact from hydropower production. Damming of rivers has negative impacts on fish and other fauna
migration.
E4.2
Biodiversity and ecosystems
Negative impact
Upstream
Long-term
Biodiversity impact through climate change pressure from trading of energy. Impacts through global warming.
The mechanism is global, but the impact is shown at the local level.
E4.3
Biodiversity and ecosystems
Negative impact
Upstream
Long-term
Biodiversity loss resulting from fuel procurement. The production of fuel used in Fortum's power and heat
production affects biodiversity through land use, resulting in changes and loss and degradation of the natural
environment. Emissions from production of fuels used by Fortum also affect biodiversity through climate change.
E4.4
Biodiversity and ecosystems
Negative impact
Own operations
Long-term
Land use impact from construction. Changes and loss of the natural environment at construction sites. In addition,
increased impact from fragmentation and encroachment. At the operational stage, there may also be possible
impacts on avifauna (mainly birds and bats) through collision risk and changes in migration routes.
E5.1
Resource use and circular
economy
Negative impact
Own operations
Long-term
Producing radioactive waste in nuclear power plant operations. Radioactive waste is classified as either low-level,
intermediate-level or high-level waste, based on how it was created, its original purpose and radioactivity level.
Radioactive substances ending up in the environment through the processing, storage, transportation and/or
disposal of radioactive waste may cause environmental impacts.
S1.1
Own workforce
Positive impact
Own operations
Short-term
Fortum provides secure employment through permanent, full-time jobs and by fostering attractive career and
development opportunities for continued competence development. This increases employees' security, stability,
job continuity, and peace of mind, and fosters commitment to the organisation.
S1.2
Own workforce
Positive impact
Own operations
Short-term
All Fortum employees receive an adequate wage and Fortum is committed to ensuring gender-equal and
adequate pay for all employees in all countries.
S1.3
Own workforce
Positive and
negative impact
Own operations
Short-, medium-term
Safety is considered a material and strategic issue at Fortum and Fortum strives for excellence in safety culture
across all operations. Safety incidents have a negative impact on employee health and safety.
S2.1
Workers in the value chain
Negative impact
Upstream
Short-term
Excessive working hours, inadequate wages, insufficient health and safety practices, gender inequality and a
limited right to collective bargaining in supply chains violate value chain workers' rights at work and have a
negative impact on their quality of life, health and wellbeing. Fortum may be linked to those impacts through its
supply chains.
S2.2
Workers in the value chain
Negative impact
Upstream
Short-term
Use of forced, involuntary or child labour violates human rights and children's rights. Fortum may be linked to
those impacts through its supply chains.
S2.3
Workers in the value chain
Negative impact
Upstream
Short-term
Safety incidents have a negative impact on contractors' employees who work at Fortum's sites.
S3.1
Affected communities
Positive impact
Own operations
Medium-term
Fortum has positive socio-economic impacts on local communities around its sites through providing employment
and indirect employment opportunities through purchases of products and services. In addition, land leasing and
taxes provide income for local communities.
S3.2
Affected communities
Negative impact
Across
Medium-term
Activities in Fortum's value chain, including Fortum's provision of services to wind power plants have potential
impacts on the traditional land use modes, customary practices and modes of livelihood, e.g. traditionally
practised reindeer herding of indigenous peoples.
G1.1
Business conduct
Across
Medium-term
Fortum considers effective compliance management, business conduct, as well as the prevention and detection of
corruption and bribery to be a basis of ethical corporate culture.
G1.2
Business conduct
Across
Short-term
Fortum encourages employees and other stakeholders to raise concerns and report any misconduct when
necessary and considers the protection of whistleblowers critical to building trust in the reporting channels.
G1.3
Business conduct
Upstream
Medium-term
Managing relationships with suppliers is essential for effective management of sustainability impacts and risks.
48
1.5 Sustainability governance
1.5.1 Role of administrative, management and supervisory bodies
Roles and responsibilities of the administrative, management and supervisory bodies
Governing_bodies_of_Fortum_FS.svg
The decision-making bodies managing and overseeing Fortum’s administration and operations
are the General Meeting of Shareholders; the Board of Directors (the Board) with its Audit and
Risk Committee (ARC), the Technology and Investment Committee (TIC), and the People and
Remuneration Committee (PRC); and the President and Chief Executive Officer (CEO), supported
by the Fortum Leadership Team (FLT). 
The highest decision-making authority on sustainability- and business conduct -related matters
is with the Board. In addition, both the ARC and the TIC have their specific duties and
responsibilities. Members of the FLT and other senior executives support the Board in its
decision-making on sustainability- and business conduct -related matters.
Sustainability is an integral part of Group strategy. In accordance with the Board charter, the
Board is responsible for strategic development and steering of the Group’s businesses, setting
and following up performance targets, including sustainability-related targets; as well as for
reviewing and approving sustainability reporting. Sustainability risks and opportunities are
considered as an input in making of strategic choices, including major transactions, and in
setting performance targets.
Sustainability risks and opportunities are managed through the same risk management
framework, governance, and processes than all other risks and opportunities. The Board has the
supervision and oversight to ensure that risk management of the company is properly
organised. The Board is also responsible for confirming operating principles and Group policies,
including the Code of Conduct, the Sustainability Policy and the Risk Policy, as well as for
overseeing their implementation to ensure that also sustainability-related matters are
appropriately managed. 
In accordance with its charter, the ARC monitors the sustainability reporting process. The ARC is
responsible for informing the Board of the outcome of the assurance of the sustainability
reporting, how the assurance of the sustainability reporting has contributed to the integrity of
sustainability reporting, and what the role of the ARC has been in the sustainability reporting
assurance process. The ARC prepares the recommendation for the Board on the election of the
external auditor and sustainability reporting assurance provider and evaluates the
independence of the external auditor and assurance provider. The ARC meets regularly the
sustainability auditor to discuss and review the assurance plan, assurance processes and
observations. The ARC also reviews the description of the main features of the internal control
and risk management systems for sustainability reporting processes, and monitors material
sustainability-related risks and uncertainties. Further, the ARC monitors the efficiency of the
company’s compliance and risk management systems, as well as monitors and assesses the
legal and business ethics compliance, including following cases of misconduct related to
business conduct.
The TIC assesses and reviews recommendations for the Board on sustainability-related policies
and targets, excluding reporting. 
The FLT, led by the President and CEO, is responsible for setting the Group’s sustainability
objectives, proposing sustainability targets for Board approval, and monitoring sustainability
performance on a monthly, quarterly, or annual basis, depending on the specific target. The FLT
reviews and the Board approves amendments to the Sustainability Policy. The execution of the
climate transition plan will be followed in the FLT's Strategy and Capital Allocation Committee
(SCAI) on a regular basis.
The Chief Financial Officer has the executive-level responsibility for the sustainability statement
in accordance with CSRD, including the related reporting process and controls, as well as the
overall ownership of the ERM process, including material sustainability risks and opportunities.
The Executive Vice President, Sustainability and Corporate Relations has the overall
responsibility for sustainability, including the development, execution and oversight of the
Group’s sustainability activities, such as the Sustainability Policy and related group-level
instructions, sustainability targets and monitoring performance; as well as the double materiality
assessment process, including the identification of material impacts. 
49
Material sustainability-related impacts, risks and opportunities are reported to the ARC and the
FLT, at least annually, see list in 1.4.2 Material impacts, risks and opportunities. The
management of impacts, risks and opportunities, and the related assessment process is
integrated into annual governance processes utilising relevant experts across the company.
Responsibility for providing a consolidated view of Fortum’s production portfolio, its long-term
development, and its alignment with the Group strategy and sustainability-related targets falls
under the Strategy function. 
Composition and diversity of the members of administrative, management and
supervisory bodies
Information on the composition of the Board is presented in the table below:
As indicated
2024
Number of executive members
0
Number of non-executive members
9
Board's gender diversity ratio, female to male
3:6
Proportion of independent board members, %
100
With regard to the Board’s gender diversity ratio, the Shareholders’ Nomination Board applied
the Board diversity principles in line with the Finnish Corporate Governance Code 2025 in
preparing the proposal for the nomination of Board members for the 2024 and 2025 Annual
General Meeting (AGM). Ahead of the 2024 AGM, a member of the Board at the time announced
that she was not available for election to the Board for the new term. Thus, the composition of
the Board decreased from ten to nine members, of which three are female and six are male. The
proposal for the board members for the AGM 2025 consists of three females and six males. The
Shareholders’ Nomination Board acknowledges the current gender ratio of the Board and will
take it into account in the preparation of the proposal on the composition of the Board in the
future. 
The Board does not have employee or other worker representation. However, Fortum has an
informal Advisory Council consisting of representatives from different key stakeholder groups,
as invited by the Board. The Advisory Council aims at maintaining and furthering the dialogue
with key stakeholders to advance Fortum’s interests, brand and reputation. The Advisory
Council regularly discusses topics related to Fortum’s operations and development with the
President and CEO, FLT and the Board. The Advisory Council currently consists of 15 persons
representing Fortum's different stakeholder groups, including three employee representatives.
Ensuring skills and expertise for sustainability oversight by administrative,
management and governance bodies
The purpose and task of Fortum's Shareholders’ Nomination Board is to prepare proposals on
the remuneration, the number of Board members, and the composition of the Board for the
General Meeting. It also seeks successor candidates to the Board. The Shareholders’
Nomination Board consists of three members appointed by the three largest shareholders. The
Shareholders’ Nomination Board applies diversity principles to the Board of Directors in line with
the Finnish Corporate Governance Code, according to which the Board composition shall include
expertise from the geographical areas where Fortum conducts its business. The underlying
profession of Board members shall include such competencies that supports the
implementation of Fortum’s strategy, and that enables the Board members to challenge
management decisions and to exercise oversight, emphasising experience gained in a CEO-level
management position in an international business, as well as strong expertise in sustainability,
energy industry and digitalisation, in particular. The Shareholders’ Nomination Board has
deemed that  both the current board composition and the board member candidates proposed
to be elected by the AGM 2025 possesses the competences defined in the diversity principles in
a well-balanced manner. 
Information provided to and sustainability matters addressed by Fortum’s
administrative, management and supervisory bodies
In 2024, the Board actively monitored the preparations of the first sustainability statement in
accordance with the CSRD. Ahead of the new sustainability reporting obligations, the entire
Board also participated in designated trainings. 
Furthermore, the ARC, in each meeting, monitored closely the status of the CSRD
implementation project, as well as outcomes, e.g., the results of the double materiality
assessment and key reporting processes and controls. It also reviewed the external assurance
plan and assurance observations, as well as the disclosures in the sustainability statement,
including the list of material impacts, risks and opportunities. In accordance with its role, the TIC
reviewed the sustainability targets proposed by the FLT.
50
1.5.2 Sustainability-related performance in incentive schemes
The Remuneration Policy for the governing bodies sets out the remuneration principles for the
President and CEO, as well as for the Board.
The Board annually decides on the group-level sustainability targets to be included in the
incentive schemes. Current incentive schemes include elements that are linked to climate and
safety impacts and targets. 
Fortum has a short-term incentive (STI) programme applicable to all personnel, which includes
safety as one element. In the 2024 STI programme, the safety target included completion of key
safety actions to improve safety culture in five focus areas: safety leadership, contractor
management, risk awareness, learnings and skills, and health and wellbeing. The weight of the
safety target in the incentive programme was 10%. In addition to the financial and safety
targets, the 2024 STI programme also included customer satisfaction and operational measures
(fleet availability), each having a weight of 10%.
The long-term incentive (LTI) programme, applicable to top management and other key
employees, consists of annually commencing LTI plans with a three-year performance period.
Performance measures, weightings and targets are set by the Board to ensure that they
continue to support the company strategy, and they typically include Environmental, Social, and
Governance (ESG) measures. In the 2022–2024 LTI plan, the ESG measure was related to the
reduction of absolute CO2 emissions of the company in Europe. The weight of the ESG measure
in the LTI programme was 20%. In the 2023–2025 LTI plan, the ESG measure is linked to
emission reduction targets based on climate science (SBTi 1.5°C) and is related to emissions in
Europe, and to Fortum’s reputation index development among key stakeholders. In the
2024–2026 LTI plan, the ESG measures are based on the development of a pipeline of
renewable energy to respond to future demand-driven growth and emission reduction targets
aligned with SBTi. In both 2023–2025 and 2024–2026 LTI programmes the weight of the
ESG measure is 30%.
Board members are not in an employment relationship with Fortum and, therefore, they are not
able to participate in Fortum’s STI or LTI programmes.
See also Note 10 Employee benefits and Board remuneration.
1.5.3 Risk management and internal controls over sustainability
reporting
The requirements for internal controls are set in Group policies, Group instructions and the
internal control framework, which is based on the main elements of the framework introduced
by the Committee of Sponsoring Organisations of the Treadway Commission (COSO). The
internal control framework is designed to support operational effectiveness and efficiency,
reliable financial and sustainability reporting, and compliance with applicable laws, regulations
and policies, defining the minimum requirements for key processes. 
Key risks for sustainability reporting have been identified by analysing potential causes for error
in the reporting process and the likely impact on the quality of reporting. The overall risk in
sustainability reporting is material misstatement due to, e.g., incompleteness or inaccuracy of
reported information. In addition, the preparation of the sustainability statement requires
significant judgement, such as in determining material topics. In the rapidly developing
reporting landscape, non-compliance with applicable laws and regulations is also a key risk. Key
controls have been defined to address the main risks identified in the end-to-end reporting
process.
Environmental, social and business conduct data used for sustainability reporting are entered
into five source systems by sites and business units and consolidated and governed centrally by
the Finance function. The Corporate Sustainability, People, Procurement, and Compliance &
Ethics functions provide content expertise. Control activities, such as automated IT controls,
data entry approval, reconciliations, analytical review and checklists, are applied throughout the
sustainability reporting process, including the double materiality assessment, to prevent or to
detect and correct errors and deviations. Responsibilities have been clearly assigned between
the different Group functions and business units. Group Accounting ultimately ensures that
sustainability reporting disclosures comply with applicable laws and regulations. 
The effectiveness of key internal controls are assessed annually as part of Group-wide internal
controls maturity assessments and identified improvement actions are reported to the FLT and
the ARC. Internal control design and operating effectiveness are also assessed as part of the
audits carried out by Internal Audit. Audit results, including corrective actions and their status,
are regularly reported to the management and to the ARC. 
51
1.5.4 Statement on sustainability due diligence
Fortum’s approach to due diligence is based on the UN Guiding Principles on Business and
Human Rights and the OECD Guidelines for Multinational Enterprises on Responsible Business
Conduct. The table below summarises where the key elements of human rights and
environmental due diligence processes are described in this sustainability statement.
Core elements on
due diligence
Section(s)
Embedding due diligence
in governance, strategy
and the business model
1.5 Sustainability governance
2.1.2 Policies on environmental matters
2.2.5 Targets for climate change
2.3.4 Targets for pollution
2.4.4 Targets for water
2.5.4 Targets for biodiversity
2.6.4 Targets for resource use and circular economy
3.1.2 Policies on social matters and respect for human rights
3.2.4 Targets for own workforce
3.3.4 Targets for workers in the value chain
3.4.4 Targets for affected communities
Engaging with affected
stakeholders in all key
steps of the due diligence
process
1.3.2 Interests and views of stakeholders
3.2.6 Engaging with own workforce on impacts
3.3.6 Engaging with value chain workers on impacts
3.4.6 Engaging with affected communities on impacts
Identifying and assessing
adverse impacts
1.4.1 Double materiality assessment process
2.2.2 Material impacts, risks and opportunities for climate change
2.3.2 Material impacts, risks and opportunities for pollution
2.4.2 Material impacts, risks and opportunities for water
2.5.2 Material impacts, risks and opportunities for biodiversity
2.6.2 Material impacts, risks and opportunities for resource use and circular economy
3.2.2 Material impacts, risks and opportunities for own workforce
3.3.2 Material impacts, risks and opportunities for workers in the value chain
3.4.2 Material impacts, risks and opportunities for affected communities
Core elements on
due diligence
Section(s)
Taking actions to address
those adverse impacts
2.2.5 Targets for climate change
2.2.6 Transition plan for climate change mitigation
2.2.7 Actions and resources for climate change
2.3.5 Actions and resources for pollution
2.4.5 Actions and resources for water
2.5.6 Actions and resources for biodiversity
2.6.5 Actions and resources for resource use and circular economy
3.2.5 Taking action and tracking effectiveness of actions on own workforce
3.3.5 Taking action and tracking effectiveness of actions on workers in the value chain
3.4.5 Taking action and tracking effectiveness of actions on affected communities
4.5 Management of relationships with suppliers
Tracking the
effectiveness of these
efforts and
communicating
2.2.7 Actions and resources for climate change
2.2.8 Metrics for climate change
2.3.6 Metrics for pollution
2.4.6 Metrics for water
2.5.7 Metrics for biodiversity
2.6.6 Metrics for resource use and circular economy
3.2.5 Taking action and tracking effectiveness of actions on own workforce
3.3.5 Taking action and tracking effectiveness of actions on workers in the value chain
3.4.5 Taking action and tracking effectiveness of actions on affected communities
4.5 Management of relationships with suppliers
52
2 Environmental sustainability
2.1 Introduction
2.1.1 Introduction to environmental sustainability
Environment is at the core of Fortum’s strategy and operations. Climate change, pollution,
water, biodiversity and ecosystems, as well as resource use and circular economy are material
environmental topics for Fortum. 
Fortum’s target is to reduce greenhouse gas emissions across its operations and value chain, in
alignment with the goals of the Paris Agreement and the requirements of the Science Based
Targets initiative (SBTi). Fortum assesses the life-cycle impact of its products and projects and
aims to improve their energy and resource efficiency. Fortum also aims at preventing pollution
by adopting cleaner technologies, optimising processes, and reducing waste generation, where
feasible. 
Fortum aims at reducing its emissions to air, land and water. Fortum monitors its use of water
and aims for efficient use of water, reduction of fresh-water use, and recycling of water
especially in areas of high water stress. Fortum also assesses and increases its knowledge of its
impacts and dependencies on biodiversity and ecosystem services, the aim being to reduce
negative impacts on the natural environment and to improve biodiversity in connection with its
operations.
2.1.2 Policies on environmental matters
The key policies to address the management of environmental impacts, risks and opportunities
on Fortum's operations and the value chain are the Code of Conduct, the Supplier Code of
Conduct and the Sustainability Policy. These policies are approved by the Board of Directors and
are accompanied by instructions and guidelines to guide implementation. The policies apply to
all employees, businesses and corporate functions in all operating countries, and the Supplier
Code of Conduct sets the expectations for Fortum's suppliers. The above-mentioned policies are
available on Fortum's website.
The Code of Conduct states Fortum's commitment to act with due care to ensure
environmentally sound business practices and the responsible use of natural resources, to
mitigate climate change and to protect biodiversity in all phases of operations, and to
continuously improve environmental performance, while supporting the decarbonisation of
industries and societies.
The Sustainability Policy describes Fortum's commitments and ambition level towards material
environmental issues. Views of affected stakeholders are taken into account when compiling the
Sustainability Policy. These stakeholders include customers, personnel, service and goods
suppliers, local communities and non-governmental organisations (NGOs).
Commitments related to different environmental topics are described under each topical
policy chapter. 
Key policies and instructions on environmental matters are presented in the table below.
Policies and instructions marked with ‘OO’ relate to own operations. Those marked with ‘VC’ aim
to address the impacts, risks and opportunities within the value chain, although not all of them
are directly binding on value chain actors.
Document name
Climate
Change
Pollution
Water
Biodiversity
and
ecosystems
Resource
use and
circular
economy
Key policies, instructions and manuals
Code of Conduct (OO, VC)
•
•
Supplier Code of Conduct (VC)
•
•
•
•
•
Sustainability Policy (OO, VC)
•
•
•
•
•
Biodiversity Manual (OO, VC)
•
•
Fortum's Paris Aligned Climate Advocacy
Principles (OO, VC)
•
Other related policies, instructions and manuals
Group Risk Policy (OO, VC)
•
•
•
•
•
Sustainability Governance Model (OO)
•
•
•
•
•
Investment Manual (OO, VC)
•
•
•
•
•
Group Manual for Sustainability Assessment
(OO, VC)
•
•
•
•
•
Instructions and Minimum Requirements for
EHS Management (OO, VC)
•
•
•
•
Forest Management Guidelines (OO)
•
Fortum Nuclear Generation Safety and
Quality Policy (OO)
•
Group Counterparty Risk Instruction
(OO, VC)
•
•
•
•
•
53
2.2 Climate change
2.2.1 Introduction to climate change
Climate change is one of the global megatrends that is driving changes in Fortum’s operating
environment. Large evidence of global warming is already underway, and this highlights the
need to accelerate efforts to reduce emissions and increase carbon sinks. In order to stay within
the 1.5 °C limit, the world’s emissions must be halved by 2030 and must reach net-zero in the
early 2050s. The world must rapidly shift away from burning fossil fuels, and carbon removal is
now essential to reach the targets. Climate change mitigation and adaption require political
commitment and ambitious actions from different players in society. The European Union is
aiming for climate neutrality by 2050 and is committed to a 55% reduction in greenhouse gas
emissions by 2030.
2.2.2 Material impacts, risks and opportunities for climate change
Fortum's operations have both actual and potential negative impacts and actual positive
impacts on climate change and are subject to climate-related risks and opportunities. The
impacts, risks and opportunities related to greenhouse gas (GHG) emission reductions and low-
carbon energy sources relate to all business segments across upstream, downstream and own
operations. Impacts, risks and opportunities surface in the short-, medium- and long-term, and
risks are both physical and transitional.
Fortum has identified the following material climate change-related impacts, risks and
opportunities in the double materiality assessment. For more information on the double
materiality assessment process, see 1.4 Double materiality assessment.
IRO reference
Description
Negative impacts
IRO E1.1
IRO E1.2
IRO E1.3
IRO E1.4
IRO E1.5
IRO E1.6
Fossil fuel combustion releases carbon dioxide and other greenhouse gases, that causes
temperature rise and accelerates climate change and changes in rainfall, resulting in more floods,
droughts, or intense rain, as well as more frequent and severe heat waves. Fortum has identified
negative climate change impacts in the following operations:
• Producing GHG emissions in power and heat production.
• Purchasing of non-renewable or uncertified electricity for own use.
• Producing GHG emissions in the production of electricity purchased from the market and sold to
end-users unbundled with Guarantee of Origin certificates.
• Producing GHG emissions in the upstream and downstream value chain (fuels, materials,
components and waste).
• Producing GHG emissions in the use of natural gas sold to customers.
• Climate change impact caused by travelling and commuting.
Positive impact
IRO E1.7
Helping customers to decarbonise their operations. Offering low-carbon and stable energy
supply for customers' decarbonisation needs. Providing electric vehicle charging applications to
the customers supporting their own CO2 emission reduction efforts.
Risks
IRO E1.8
Policy and legal transition risk: Uncertainties around regulatory development in the EU, e.g., EU
ETS, affecting Fortum's profitability.
Long-term risk; there was no material financial effect in 2024.
IRO E1.9
Reputational transition risk: Failure to decarbonise Fortum's operations in accordance with
climate targets and as requested by stakeholders, potentially affecting market value.
Long-term risk; there was no material financial effect in 2024.
IRO E1.10
Chronic physical climate risks: Increased average temperatures, including water, affecting
electricity, gas and heat demand, and supply and production continuity.
Fortum’s profitability is sensitive to changes in weather; changes in temperature affect demand
for power and may impact power price. It is not possible to isolate the financial effect of increased
average temperatures on sales.
IRO E1.11
Acute physical climate risks: Extreme weather events, such as storms or heat waves and dry
spells, causing, e.g., forest fires affecting power generation and transmission. Fortum’s
profitability is sensitive to changes in weather; changes in weather conditions impact power price
and/or production volumes. It is not possible to isolate the financial impact of extreme weather
events on sales. Extreme weather in 2024 had no material financial effect on Fortum’s assets.
Opportunities
IRO E1.12
Increased profitability from decarbonising heating and cooling operations. Medium- and long-
term opportunity; there was no material financial effect in 2024.
IRO E1.13
Increased sales resulting from increased demand for low-carbon electricity.
The production of low-carbon electricity is an integral part of Fortum’s corporate strategy, and
Fortum is actively looking for partners for long-term power purchase agreements (PPA). Pjelax
wind farm, with total capacity of 380 MW, was commissioned in July 2024, and the Finnish energy
company Helen Ltd. has a 12-year ‘pay-as-produced’ PPA to purchase 65% of the power
generation. The result contribution in 2024 was slightly positive. In 2024, a five-year PPA was
signed with the Swedish ferroalloy’s producer Vargön Alloys AB. The contract has progressive
pricing for the delivery of approx. 0.4 TWh of electricity and GoO for nuclear power per annum in
Sweden. The contract term is from December 2024 to December 2029.
Management of these impacts, risks and opportunities is described in section 2.2.6 Transition
plan for climate change mitigation.
54
2.2.3 Policies on climate change
Key policies to address climate change mitigation and adaptation are the Sustainability Policy,
the Code of Conduct, the Supplier Code of Conduct, and Fortum’s Paris-Aligned Climate
Advocacy Principles.
In accordance with the Sustainability Policy, Fortum addresses risks posed by climate change,
including extreme weather events and changing conditions, and implements measures for
climate change adaptation to enhance its resilience to protect its assets and to ensure business
continuity. The Sustainability Policy also states that Fortum assesses the life-cycle impact of its
products and projects and aims to improve their energy efficiency. 
The Code of Conduct addresses Fortum’s ambition to strive for climate change mitigation in all
phases of operations, in alignment with the goals of the Paris Agreement and the requirements
of the SBTi, as well as with Fortum’s strategy to support the decarbonisation of industries and
societies. Renewable energy deployment is not specifically mentioned but it is part of Fortum’s
commitment to support decarbonisation and to provide customers and societies with clean
energy at scale.
The Supplier Code of Conduct outlines the requirements for suppliers and business partners,
including requesting suppliers to consider the climate impacts of their operations and to reduce
GHG emissions, where reasonable. The Paris-Aligned Climate Advocacy Principles guide the
more detailed positions Fortum takes on EU and country-specific policies and also form the
basis for policy advocacy in industry associations.
Environmental sustainability, including climate change, is also incorporated in the other related
policies, instructions and manuals outlined in section 2.1.2 Policies on environmental matters.
2.2.4 Resilience analysis
Fortum considers a landscape of five strategic, long-term macro scenarios in its operating
environment outlook to analyse resilience. The scenarios are formed exploratively and are
defined by distinct potential developments in four first-order drivers: level of cooperation,
government versus market, societal focus on climate and environment, and technology
development; and two second-order variables: macro- and geo-economics, and climate and
ecosystem stability. The scenarios consider resiliency in both the mid-term (2030) and long-
term (2050) in all Fortum’s key business areas and operating countries. Both qualitative and
quantitative inputs and uncertainties are considered in the scenario landscape, and three of the
five identified strategic scenarios are quantified in further detail using power market modelling:
• A delayed transition scenario (with global warming of more than 3°C), in which national
security, economy and/or political polarisation push the climate crisis and mitigating actions
outside of societal focus. 
• An ambition meets realism scenario (with global warming of 2.5-2.8°C), where high climate
ambitions share focus with other national interests as current economic and political
uncertainties continue, in addition to real-life frictions from, e.g., technology costs and supply
chains. 
• A policy-driven accelerated transition scenario (Paris-aligned, with global warming of
1.5-1.9°C) that is defined by a substantial societal step-up in climate mitigation actions, leading
to a global war-time-economy-like mobilisation of resources.
The power market modelling is done for the whole European power system, on 1-hour resolution
from the current year to 2050, in the three strategic scenarios described and considering high/
low sensitivities for energy commodity prices and weather-based variation. Key assumptions
and inputs assess the key uncertainties, including political targets and regulation, power, heat
and hydrogen demand in sectors, energy technology costs, generation potentials and profiles,
commodity volumes and prices (e.g., gas, oil, coal, CO2), grid and other energy infrastructure and
macroeconomic variables. Key outputs include wholesale power prices, installed capacity and
power generation by generation technology, power demand by sector and segment, and energy
sector CO2 emissions. 
These scenarios sufficiently cover both extremities of the potential climate scenario range, as
any scenario of over 3°C is expected to present similar transition considerations, and a
transition of under 1.5°C is not considered likely. In addition, implications from all five qualitative
scenario narratives are considered in the Group’s strategy to deliver clean energy and drive
decarbonisation in industries.
Transition events based on the scenario and resilience analyses were considered in the double
materiality assessment. It considers both actual and potential transition and physical risks in the
energy and materials value chains. No specific exclusions were made before the double
materiality assessment. 
A transition to a low-carbon and resilient economy will affect the surrounding areas. Among
others, Fortum recognises that decarbonising heavy industries through direct and indirect
electrification increases electricity consumption. The power system will need low-carbon
sources of both firm and flexible capacity. While the transition away from fossil fuels is causing
less dependency on imports, the growth of solar and wind generation is increasing the need for
security of supply.
The scenario and resilience analyses inform Fortum’s strategy ‘Power to Renew’, published in
March 2023. The least risky course of action is to decarbonise power production effectively in
the short- and medium-term – this strategy, combined with a focus on the Nordic energy
market, ensures sufficient access to capital, profitability, and a secure and clean energy supply. 
The assets and business activities at risk are considered in the double materiality assessment
and the results of this assessment guide the definition of climate targets, investment decisions,
as well as current and planned mitigation actions. These actions are further elaborated in
55
section 2.2.6 Transition plan for climate change mitigation, including a description of Fortum’s
ability to adjust and adapt its strategy and business model to climate change over the short-
medium- and long-term.
2.2.5 Targets for climate change
Fortum’s climate change-related targets and performance against them is presented in the
table below:
Measure
Base year
Base-year
value 1)
Target
year
2024
Change
compared
to base
year, %
1. Reduce Scope 1 and 2 GHG emissions
from electricity and heat generation by
85% per MWh 2, 3)
tCO2-eq/
MWh
2023
0.024
2030
0.018
-23
2. Reduce Scope 1 and 3 GHG emissions
from fuel- and energy-related activities
covering all sold electricity by 69% per
MWh 2, 3)
tCO2-eq/
MWh
2023
0.13
2030
0.11
-12
3. Reduce absolute Scope 3 GHG
emissions from use of sold products for
sold fossil fuels by 55% 2)
tCO2-eq
2023
949,779
2033
1,266,451
33
4. Reduce Scope 1 and 2 GHG emissions
from electricity and heat generation by
90% per MWh 3, 4)
tCO2-eq/
MWh
2023
0.024
2040
0.018
-23
5. Reduce Scope 1 and 3 GHG emissions
from fuel- and energy-related activities
covering all sold electricity by 94% per
MWh 3, 4)
tCO2-eq/
MWh
2023
0.13
2040
0.11
-12
6. Reduce absolute Scope 3 GHG
emissions from fuel- and energy-related
activities by 90% 4)
tCO2-eq
2023
1,005,947
2040
962,775
-4
7. Reduce absolute Scope 3 GHG
emissions from use of sold products for
sold fossil fuels by 90% 4)
tCO2-eq
2023
949,779
2040
1,266,451
33
8. Specific emissions of <20 gCO₂/kWh
for total energy production
gCO₂/
kWh
N/A
N/A
2028
26
N/A
9. Specific emissions of <10 gCO₂/kWh
for power generation
gCO₂/
kWh
N/A
N/A
2028
11
N/A
10. Coal exit in the company’s own
operations 5)
GW
N/A
N/A
2027
1.0
N/A
1) Base-year values exclude the recycling and waste business divested in November 2024. Base-year values have not been
assured.
2) Near-term science-based emission reduction target.
3) The target boundary includes land-related emissions and removals from bioenergy feedstocks.
4) Long-term science-based emission reduction target.
5) Coal-based capacity for power and heat. Coal-based power and heat production, as well as coal share of sales is
presented in 2.2.8 Metrics for climate change.
Fortum commits to reaching net-zero GHG emissions across the value chain by 2040. SBTi has
approved Fortum’s science-based near-term (targets 1-3) and long-term targets (targets 4-7).
Climate targets have been set by using SBTi’s sectoral decarbonisation approach in line with the
goal of the Paris Agreement limiting warming to 1.5°C, and in accordance with the SBTi
Corporate Near-Term Criteria and Corporate Net-Zero Standard.
Target base years and baseline values are described in the table above. SBTi-aligned targets are
based on the GHG inventory; the same inventory boundaries are used for the targets and the
GHG inventory. The base year is selected in accordance with SBTi criteria, and the most recent
year for which data was available at the time of SBTi validation was chosen as the base year.
Fortum will review the climate targets every five years, or when significant changes in the
organisation structure, consolidation approach or calculation methodology occur. The estimated
quantitative contribution of decarbonisation levers to the achievement of GHG emission
reduction targets are disclosed in section 2.2.6 Transition plan for climate change mitigation.
Fortum's Scope 1 and Scope 2 greenhouse gas intensity for electricity and heat production
decreased by 0.005 tCO2-eq/MWh (23%) in 2024 due to actions taken to reduce coal use.
Additionally, Scope 3 emissions from sold electricity decreased due to the increased sales of
GoO-certified electricity, which also led to a decrease in the electricity sales intensity by 0.02
tCO2-eq/MWh (12%). The volume of gas sales increased due to past contracted volumes,
resulting in a 0.3 Mt CO2-eq (33%) increase in greenhouse gas emissions from the use of sold
gas. Emissions from sold heat decreased by 0.04 Mt CO2-eq (4%). For information on actions in
2024, see 2.2.7 Actions and resources for climate change.
2.2.6 Transition plan for climate change mitigation
Fortum has set near- and long-term company-wide emission reduction targets in line with the
SBTi, a global initiative that helps companies and organisations to set emission reduction
targets aligned with the latest climate science. The transition plan implies GHG emission
reduction targets aligned with a 1.5°C global warming limit.
Fortum has set targets separately for own operations (Scope 1 and Scope 2), as well as for the
upstream and the downstream value chain (Scope 3). SBTi-aligned climate targets include a
reduction of Scope 1 and Scope 2 GHG emissions intensity for power and heat production, a
reduction of Scope 1 and Scope 3 category 3 GHG emissions intensity for sold electricity, and a
reduction of GHG emissions from the use of sold natural gas (Scope 3, category 11). In addition,
Fortum has set a target to reduce GHG emissions from fuel and energy-related activities
covering sold heat. Climate targets are presented in the section above.
56
The transition plan defines actions and resources towards net-zero targets and is anchored with
the overall business strategy and the strategic priorities: deliver reliable clean energy, drive
decarbonisation of industries, and transform and develop. The plan is based on existing
operations and business structure, and dependent on future development and changes on
energy policy and regulations, market structure, power and heat demand, fuel supply,
innovations in technology, as well as changes in GHG calculation methodologies and SBTi
guidelines. The main assumptions include, e.g., growth in power generation and sales. The plan
transforms the business from fossil fuels to other energy sources (e.g. utilising waste heat and
electric boilers), thus the impact on workforce is limited. 
The transition plan has been approved by the CEO, with the support of the FLT, and presented
to TIC. The execution of the transition plan will be followed in the Strategy and Capital Allocation
Committee (SCAI) on a regular basis.
The following chart depicts Fortum’s illustrative transition plan to 2040:
transition_plan_2024_EN_NoFootnote_270125.svg
1) The transition plan excludes the recycling and waste business divested in November 2024.
2)Guarantee of origin (GoO) refers to an electronic document that provides evidence that a given share or quantity of
energy has been produced with, e.g., renewable sources or nuclear power.
3)Residual emissions are either decarbonised from own value chain or neutralised to reach net-zero emissions in 2040.
Scope 1
The biggest GHG emission reduction lever for Scope 1 GHG emissions intensity target is the exit
of coal use in heat and power production, which is estimated to decrease Scope 1 GHG
emissions by 68%. 
In Finland, Fortum is committed to exit coal in the Meri-Pori coal-fired condensing power plant
(CO2 emission reduction of 14%). Additionally, the use of coal in heat production will be replaced
by smart and flexible solutions that are largely based on renewable or nuclear-based electricity:
waste heat utilisation, heat pumps, heat accumulators and electric boilers. This is estimated to
decrease CO2 emissions by approximately 22%. 
In Poland, Fortum plans to replace coal with biofuels and electric boilers, which is estimated to
decrease Scope 1 GHG emissions by approximately 32%. Bio-based CO2 from the combustion of
biofuels is assumed to be netted out, i.e., assuming the same amount of CO2 is absorbed in the
growth of the biomass.
Scope 2
The main lever for reducing Scope 2 emissions is the purchasing of renewable or nuclear-based
electricity for own use. In climate target base year 2023, the Scope 2 share of total Scope 1 and
Scope 2 GHG emissions intensity per MWh produced power and heat was approximately 3%.
Scope 3   
Scope 3 emissions will be reduced through supply-chain decarbonisation. 
For upstream emissions for electricity sales, the main decarbonisation lever will be increasing
the share of renewable and nuclear-based electricity in the product portfolio in all markets,
especially in Norway and Poland, through product selection and electricity purchases. The
estimated CO2 emission reduction is 60%.
For downstream emissions for gas sales, the main decarbonisation lever will be successively
increasing the share of biogas in the portfolio, especially among the enterprise customer
segment, and actively participating in and contributing to the needed market development
related to, e.g., new instruments for emission reduction.
To achieve the net-zero target for Scope 3 emissions, emissions related to external heat
delivered to customers will also need to be reduced, primarily via the market development of
exiting coal in Poland and transitioning to biomass, waste heat utilisation, heat pumps, heat
storages and electric boilers. 
57
New low-carbon power generation capacity
In addition to these levers, increased low-carbon production capacity by 2030 will decrease
Scope 1 GHG emissions intensity by approximately 5% compared to 2023. Fortum is planning to
increase power generation capacity by installing new wind and solar plants and by modernising
existing nuclear and hydropower plants. More information on new low-carbon generation
capacity can be found in the section below.
Locked-in GHG emissions
Fortum aims to decarbonise own operations by electrification and switching fuels. Emission
reduction will be achieved on a fast schedule, with coal combustion phased out by 2027, as well
as the reduction of other fossil fuels. Subsequently, only fossil fuels that are harder to replace
will remain, such as back-up power, peak capacity, and fuels used to start power plants. The
estimated locked-in Scope 1 and Scope 2 GHG emissions produced during the remaining lifetime
of existing power plants are approximately 4.5 million tCO2eq by 2030 and 13.9 million tCO2eq
by 2050. GHG emissions from Fortum’s operations are considered as locked-in until the
investment decision is made.
Alignment with EU Taxonomy criteria
The alignment of operating expenses and capital expenditure to the EU Taxonomy Climate
Change Mitigation (CCM) objective is disclosed in section 2.7.3 EU Taxonomy KPIs. Fortum’s
transition plan and actions to meet the set targets are aligned with the CCM objective, and the
EU Taxonomy Capital expenditure plan disclosed in section 2.7.5 Capital expenditure plan.
Based on Commission Delegated Regulation (EU) 2020/1818, Articles 12.1 (d) to (g) and 12.2,
Fortum is not excluded from the EU Paris-aligned Benchmarks. 
Fortum’s progress in implementing the transition plan is described in 2.2.7 Actions and
resources for climate change and in 2.2.5 Targets for climate change.
2.2.7 Actions and resources for climate change
Actions during the year
In 2024, Fortum implemented the following actions to reduce GHG emissions in own operations
and in the upstream value chain. Implemented actions are grouped by the decarbonisation lever. 
Where indicated, investments are capitalised to property, plant and equipment (Note 18
Property, plant and equipment and right-of-use assets), and linked to EU Taxonomy
classification 2.7.3 EU Taxonomy KPIs). In 2024, operating expenses relating to actions have not
been significant.
Scope 1: Coal exit
Timing
Approx.
GHG emission
reduction
Total cost/
investment
Cost /
investment
in 2024 1)
Finland: Espoo Clean Heat programme increasing flexible electricity-based district heat production
Closure of Suomenoja, Espoo coal-fired DHC plant
The closure of the last coal-fired unit used for district
heat production at the Suomenoja power plant.
Apr 2024
360 thousand t
CO2-eq 4)
Not
significant
Not
significant
Construction of electric boiler in Nuijala
In 2024, construction of an electric boiler/heat
storage began in the Nuijala area. (CCM4.11 2, 3))
2023–2027
approx. EUR
300 million 4)
EUR 77
million 4)
Construction of heat pumps utilising waste heat
from data centre in Kolabacken and Hepokorpi
In 2024, construction of heat pumps began in the
Kolabacken and Hepokorpi areas. (CCM4.25 2, 3))
2023–2025
Finland: Meri-Pori coal exit
Meri-Pori coal-fired power plant in strategic reserve
Meri-Pori coal-fired condensing plant was moved to
reserve production under an agreement with the
National Emergency Supply Agency (NESA).
Production is reserved for severe disruption and
emergencies to guarantee security of supply in the
electricity system in Finland.
Apr 2024–
Dec 2026
150 thousand t
CO2-eq
Not
significant
N/A
Poland: coal exit
Wroclaw district heating heat pump project was
completed. The heat pump utilises heat from
municipal sewage and covers up to 5% of the annual
district heating demand. (CCM4.25 2))
2022–2024
35 thousand t
CO 2-eq
approx. EUR
24 million
(PLN 100
million)
EUR 18
million
Czestochowa combined heat and power plant (CHP)
decarbonisation
In 2024, the Czestochowa plant’s retrofit from coal
to biomass was announced. (CCM4.20 2))
2024–2026
175 thousand t
CO2-eq
approx. EUR
100 million
EUR 3 million
1) Investments are capitalised to property, plant and equipment, see Note 18 Property, plant and equipment and right-of-
use assets.
2) Reference to EU Taxonomy-aligned activity code, see 2.7.3 EU Taxonomy KPIs.
3) Included in the EU Taxonomy capital expenditure plan.
4) Total for Espoo Clean Heat programme.
58
Scope 2: Purchasing renewable energy
Timing
Approx.
GHG emission
reduction
Total cost/
investment
Cost/
investment
in 2024
Purchase of low-carbon electricity
In 2024, 92% of electricity purchased for own
use was based on renewable or nuclear energy
sources.
2024–2029
40 thousand t
CO2-eq
Not
significant
Not
significant
Scope 3: Supply chain decarbonisation
Increased sales of GoO- certified electricity.
Fortum and the Swedish ferroalloy producer
Vargön Alloys AB signed a PPA for the delivery
of approximately 0.4 TWh of electricity and
GoO for nuclear power per annum in Sweden.
2024–2029
N/A
N/A
N/A
New low-carbon power generation capacity
Timing
Total cost/investment
Cost/
investment
in 2024 1)
Pjelax wind farm in Finland started power
production. The wind farm will produce more
than 1 TWh of electricity annually. (CCM4.3 2))
2021–2024
EUR 360 million
EUR 28
million
Hydropower productivity investments
Continuous hydropower plant maintenance,
legislative and productivity investments.
Investment to increase production capacity in
Swedish hydropower plants includes an
extensive rebuild of the Forshuvud,
modernisation of the Untra, as well as
modernisation and increase production
capacity of the Malta plants. The investments
in production capacity will increase annual
production capacity by approx. 35 MV.
(CCM4.5 2, 3))
Forshuvud 2021–
2025; Untra
2023–2030; Malta
2024–2026
Forshuvud: approx. EUR 59
million (SEK 650 million); Untra:
over EUR 60 million (SEK 700
million); Malta: approx. EUR 20
million (SEK 250 million)
EUR 130
million 4)
Loviisa, Finland nuclear power plant lifetime
extension to 2050. Over the course of the new
licence period, the plant is expected to
generate up to 170 TWh of electricity.
(CCM4.28 2, 3))
2023–2050
approx. EUR 1,000 million
EUR 54
million
1) Investments are capitalised to property, plant and equipment, see Note 18 Property, plant and equipment and right-of-
use assets.
2) Reference to EU Taxonomy-aligned activity code, see 2.7.3 EU Taxonomy KPIs.
3) Included in the EU Taxonomy capital expenditure plan.
4) Includes hydropower plant maintenance, legislation and productivity investments.
Planned future actions
In addition to the ongoing actions listed above, based on the transition plan, Fortum is planning
to implement the following actions to reduce GHG emissions in own operations and in the
upstream and downstream value chain. 
Action
Scope 1: Coal exit
Investigate decarbonisation of Zabrze coal-fired CHP plant, Poland
Remaining coal-fired generation capacity is 134 MW in the Zabrze CHP plant in Poland. Fortum will continue
evaluating alternatives for decarbonisation of these assets to initiate a modernisation programme and to meet the
coal exit by 2027 target.
Scope 2: Purchasing renewable energy
Fortum commits to ensuring low-carbon renewable or nuclear-based electricity use in own operations, including
existing operations, and new investments in heat pumps and electric boilers, in accordance with the target for Scope
1 and 2 GHG intensity reduction.
Scope 3: Supply chain decarbonisation
Upstream: Consumer and small business sector decarbonisation: Fortum aims to provide exclusively electricity
covered with guarantees of origin to consumers, entrepreneurs and small enterprises across all markets; to continue
offering electricity covered with guarantees of origin as a base product in Sweden and Finland; and to gradually
introduce electricity covered with guarantees of origin as a base product in Norway and Poland, aiming to provide
only electricity covered with guarantees of origin in these segments by 2030.
Upstream: medium and large enterprise sector decarbonisation: Fortum will work towards providing only electricity
covered with guarantees of origin in Sweden and Finland, as well as making a step-change in Norway and Poland,
aiming for approximately 70-80% of volumes being covered by guarantees of origin by 2030.
Downstream decarbonisation: Key actions are related to reducing emissions from sold gas to end users in the Polish
market. Fortum aims to reduce the absolute gas sales volume and to develop an offering according to market
development by reducing emissions through reduced gas consumption among larger enterprise customers,
reviewing the current customer portfolio and working together with strategic customers to reduce emissions from
gas. Fortum is also investigating possibilities to reduce GHG emissions through an increased share of biogas in the
portfolio. Fortum is also actively participating and contributing to the needed market development.
New low-carbon power generation capacity
Development of a ready-to-build pipeline of 800 MW capacity in onshore wind and solar.
Fortum is developing sites in the Nordics to build onshore wind and solar power. E.g., in 2024, Fortum signed an
agreement to acquire a project development portfolio for renewable power from Enersense. The acquired portfolio
includes 2.6 GW of early-stage onshore wind development projects in Finland, of which a minor part is expected to
reach ready-to-build status. No investment commitments have been made and decisions could be made earliest by
the end of this decade.
2.2.8 Metrics for climate change
The relevant climate change indicators are energy consumption, energy production and GHG
emissions. GHG emissions reporting covers direct Scope 1 emissions from own operations,
indirect Scope 2 emissions from purchased energy, and indirect Scope 3 emissions from the
upstream and downstream value chain.
Energy consumption
Fortum uses various fuels, such as uranium, coal, waste-derived fuels, biomass fuels and natural
gas to produce electricity, heat and steam at its plants in the Nordic countries and Poland.
Energy consumption includes purchased electricity and heat used in production plants and
other facilities.
59
Energy consumption by source is presented in the table below:
MWh or as indicated
2024
Coal and coal products
1,871,177
Crude oil and petroleum products
78,338
Natural gas
491,937
Other fossil sources
1,505,170
Purchased or acquired electricity, heat, steam, and cooling from fossil sources
49,037
Total fossil sources
3,995,659
Share of fossil sources in total energy consumption, %
13
Total nuclear sources
24,278,552
Share of nuclear sources in total energy consumption, %
81
Renewable fuels
1,688,034
Purchased or acquired electricity, heat, steam, and cooling from renewable sources
26,294
Self-generated non-fuel renewable sources
29,957
Total renewable sources
1,744,285
Share of renewable sources in total energy consumption, %
6
Total
30,018,496
Energy production
Power generation is mainly based on hydro and nuclear power. Fortum also produces district
heating and cooling.
Energy production by source is presented in the table below:
2024
MWh
Power
Heat
Nuclear
24,272,710
N/A
Natural gas
93,000
340,000
Coal
441,328
942,231
Waste-derived fuels
145,942
528,282
Fuel oil, other
816
30,537
Heat pumps, electricity
N/A
961,000
Total non-renewable energy production
24,953,795
2,802,050
Hydro
20,239,503
N/A
Solar, wind
910,047
N/A
Biomass and other biofuels
75,705
752,857
Waste-derived fuels
145,942
528,282
Heat pumps, electricity
N/A
—
Total renewable energy production
21,371,197
1,281,139
Total
46,324,992
4,083,189
The share of power generation from renewable and nuclear sources, coal-based capacity, the 
share of coal and fossil fuels of sales, as well as free emission allowances are presented in the
table below. This table is providing additional, voluntary information relating to the coal exit
target and EU ETS.
As indicated
2024
Share of power generation from renewable and nuclear sources, %
99
Coal-based capacity, GW
1.0
Coal-based power generation capacity, GW
0.7
Coal-based heat production capacity, GW
0.4
Share of coal of sales, %
3
Share of fossil fuels of production-based sales, %
6
Share of fossil fuels of sales 1), %
12
Free emission allowances 1), Mt
0.1
1) Includes fossil-based production and gas sales.
Energy intensity
Energy intensity based on net sales is presented in the table below: 
EUR million
2024
Net sales from activities in high climate impact sectors 1)
5,800
Net sales from other activities
—
Total
5,800
As indicated
2024
Total energy consumption from activities in high climate impact sectors, MWh
30,018,496
Net sales from activities in high climate impact sectors, EUR million
5,800
Total energy consumption from activities in high climate impact sectors per net sales from
activities in high climate impact sectors, MWh/EUR million
5,176
1)High climate impact sectors are those listed in NACE Sections A to H and Section L of Annex I to Regulation (EC) No
1893/2006 of the European Parliament and of the Council. Fortum’s activities in electricity production and trade, gas
sales, heat production, treatment and disposal of non-hazardous and hazardous waste, and recovery of sorted materials
are defined as high climate impact sectors.
60
GHG emissions
Breakdown of GHG emissions is presented in the table below:
Retrospective
Milestones and targets 2)
tCO2-eq or as indicated
Base year, 2023 1)
2023 1)
2024
Change, %
2025 3)
2030
2033
2040
Annual % target /
Base year
Scope 1
Gross Scope 1
1,635,701
1,635,701
1,351,041
-17
—
260,000
—
180,000
-5
Proportion of Scope 1 GHG emissions from EU ETS, %
68
68
62
-9
Scope 2
Gross location-based Scope 2
57,372
57,372
46,694
-19
Gross market-based Scope 2
44,784
44,784
24,470
-45
—
0
—
0
-14
Significant Scope 3
Total gross Scope 3
12,465,711
12,465,711
11,494,566
-8
1 Purchased goods and services
220,773
220,773
167,311
-24
2 Capital goods
61,468
61,468
95,681
56
3 Fuel- and energy-related activities
10,859,498
10,859,498
9,664,931
-11
—
5,200,000
—
2,200,000
-5
4 Upstream transportation and distribution
226,187
226,187
280,798
24
5 Waste generated in operations
316
316
302
-4
6 Business travel
3,722
3,722
4,309
16
7 Employee commuting
2,271
2,271
2,518
11
8 Upstream leased assets
986
986
1,502
52
9 Downstream transportation and distribution
11,445
11,445
10,571
-8
10 Processing of sold products
666
666
176
-74
11 Use of sold products
949,779
949,779
1,266,451
33
—
—
430,000
100,000
-5
12 End-of-life treatment of sold products
59
59
16
-73
13 Downstream leased assets
—
—
—
—
14 Franchises
—
—
—
—
15 Investments 4)
128,541
128,541
—
-100
Total
GHG emissions, location-based
14,158,784
14,158,784
12,892,300
-9
GHG emissions, market-based
14,146,196
14,146,196
12,870,076
-9
1) In 2024, Fortum revised the methodology and process for the GHG inventory to improve its accuracy and completeness. 2023 GHG emissions has been updated to follow the renewed process. Base-year values have not been assured. 
2) Values for milestones and targets exclude the recycling and waste business divested in November 2024.
3) Fortum has not set targets for 2025.
4) In 2024, emissions from associates and joint ventures providing services or energy for Fortum are reported as a part of Scope 3, category 1 or category 3. Emissions from other investments are assessed as insignificant. For the list of associates and joint
ventures, see Note 40 Group companies by segment.
In 2024, 92% of electricity purchased for own use was bundled with GoO certificates.
In 2024, total Scope 1, 2, and 3 market-based GHG emissions were 12.9 Mt CO2-eq, with a
decrease of 1.2 Mt CO2-eq (9%) compared to 2023.
Scope 1 GHG emissions decreased by 0.28 million CO2-eq tonnes mainly due to the reduction of
coal use at the Meri-Pori condensing power plant (0.1 Mt CO2-eq), the closure of the Suomenoja
coal-fired CHP plant (0.08 Mt CO2-eq), and the divestment of the recycling and waste business
in November 2024 (December GHG emissions, 0.02 Mt CO2-eq). Scope 2 market-based GHG
emissions decreased by 0.02 Mt CO2-eq (45%) as a result of increased share of GoO-certified
61
electricity purchased for own use. Regarding Scope 3, GHG emissions from sold electricity
decreased by 1.0 Mt CO2-eq due to the increased sale of GoO certified electricity. In addition,
gas sales volume in the Polish market increased, which also increased downstream Scope 3
GHG emissions from the use of sold gas by 0.3 Mt CO2-eq.
In 2024, Fortum updated the GHG inventory process to improve its accuracy and completeness
and recalculated GHG emissions for 2023, which decreased total Scope 1, 2, and 3 emissions by
0.2 Mt CO2-eq.
Fortum’s biogenic CO2 emissions are presented in the table below. Biogenic CO2 emissions are
generated in the combustion of biofuels and bio-based waste in own operations (Scope 1), as
well as from production of heat sold to end users and in the combustion of biofuels from partially
owned companies (Scope 3).
Biogenic CO2 emissions, tCO2
2024
Scope 1
629,987
Scope 3
149,978
GHG intensity
GHG emissions intensity based on net sales is presented in the table below: 
EUR million
2024
Net sales used to calculate GHG intensity
5,800
Net sales from other activities
0
Total
5,800
GHG emissions per net sales, tCO2-eq/EUR million
2024
Location-based
2,223
Market-based
2,219
Internal carbon pricing
Fortum uses various internal carbon pricing schemes to evaluate costs related to investments
and emission reduction activities, and to support decision-making.
Fortum has had an obligation in the EU emissions trading system (ETS) to set a price for carbon
emissions since 2005. The EU ETS price of carbon is among the key factors impacting the Nordic
electricity price and is fully integrated into investment decisions. The EU ETS price is valid for
CO2 emissions, covering 61% of Fortum's Scope 1 emissions in 2024. The average price for EU
ETS for 2024 was 67 EUR/tonne CO2.
In 2024, Fortum updated its internal CO2eq shadow price parameter to ensure that the cost of
GHG emissions are considered in growth and refurbishment investment decisions, and thereby
will support Fortum in reaching net-zero emissions. The shadow carbon price is valid for Scopes
1 and 2, and for Scope 3 in fuel- and energy-related activities, however, it was not yet applied to
investment decisions in 2024. The internal carbon price will be based on high-quality certified
emission reductions (CERs), and the accurate price and critical assumptions made to determine
the price will be defined in 2025. 
Reporting principles
Energy consumption and GHG emissions include all heat and power plants and production
facilities in all operating countries. The reporting scope is based on operational control. Data for
power and heat generation (GWh), used to calculate intensity targets for Scope 1, includes
Fortum’s share in associated companies and joint ventures that sell their production to the
owners at cost. This is in line with how the production purchased from these companies is
reflected in financial reporting. See also section 1.2.2 Reporting scope. 
Total energy consumption covers fuels used in power and heat production, as well as electricity
and heat purchased for own use. Purchased electricity and heat are divided into renewable,
fossil and nuclear sources. 100% renewable or nuclear-based electricity is only reported for
GoO-certified electricity; otherwise, the country-specific emission factor for residual mix
electricity is used.
In calculating the specific carbon dioxide emissions, combined heat and power plant (CHP)
emissions have been allocated for electricity and heat using the efficiency method presented in
the GHG Protocol guidelines, with a heat production efficiency of 90% and electricity production
efficiency of 40%.
The reporting of GHG emissions covers direct GHG emissions (Scope 1) from own operations,
indirect GHG emissions (Scope 2) from purchased energy, and indirect GHG emissions from the
upstream and downstream value chain (Scope 3). GHG emissions are calculated in accordance
with the GHG Protocol Corporate Accounting and Reporting Standard and the Corporate Value
Chain (Scope 3) Accounting and Reporting Standard. All GHG emissions are calculated as tonnes
of CO2 equivalent, excluding biogenic CO2, which is reported separately for Scopes 1 and 3.
Biogenic emissions for Scope 2 are not disclosed as emission factors applied do not separate the
percentage of biomass or biogenic CO2. 
62
The calculation of GHG emissions covers carbon dioxide (CO2), methane (CH4), nitrous oxide
(N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF6) and
nitrogen trifluoride (NF3). PFCs and NF3 are marked as zero, since such emissions have not been
identified in any part of the value chain. The global warming potential of all gases is based on
IPCC publications (IPCC Sixth Assessment Report, 2023 (AR6), 100-year time horizon). In 2024,
Fortum revised the methodology and process for its GHG inventory and recalculated all Scope 1,
2 and 3 emissions for 2023. Major changes were related to Scope 3 categories 3 and 15. 
Scope 1 GHG emissions from power plants are based on continuous measurements, sample
testing, or have been calculated based on fuel-specific emission factors. Various measurement
or calculation systems are in use in power plants. Scope 1 includes CH4 and N2O emissions from
biofuel combustion. Biogenic CO2 emissions are reported separately.
Scope 2 GHG emissions are calculated using both the market-based and location-based
method. The market-based method uses supplier-specific emissions factors. Emission factor
zero kg CO2/MWh has only been used for GoO-certified renewable or nuclear-based electricity.
Otherwise, the residual mix emission factor has been used. In the location-based method,
country-specific average emission factors for electricity are used. The residual mix factors and
country-specific factors have been obtained from the Association of Issuing Bodies (AIB) report
on emission factors for the most recent year.
Scope 3 GHG emissions are calculated based on operational data obtained from internal
reporting systems. In the absence of accurate data, estimates based on historical data have
been used. The emission factors used are mainly from external databases, including EXIOBASE
3.4, Ecoinvent v3.11, US-EPA 2024, and various literature sources. 92% of Scope 3 GHG
emissions are measured using primary data from activities within Fortum’s upstream and
downstream value chain. Fortum is planning to improve the data accuracy and the share of
primary data, especially related to Scope 3 categories 1 and 2, in the following years.
Primary material-, product- or activity-based data is used to calculate GHG emissions in
categories 3 (Fuel- and energy-related activities), 5 (Waste generated in operations), 10
(Processing of sold products), 11 (Use of sold products), 12 (End-of-life treatment of sold
products). Upstream and downstream transportation and distribution (categories 4 and 9) have
been calculated based on volume of transported material and actual transportation distance.
Category 6 (Business travel) is calculated based on distance travelled. Transport-related
emissions (categories 3, 4, 6, 7 and 9) are reported on a well-to-wheel basis. Secondary spend-
based data is used to calculate categories 1 (Purchased goods and services), 2 (Capital goods)
and 8 (Upstream leased assets). The volumes and categories of purchased goods and services
are based on Fortum's spend-analytics database. National average data is used to calculate
category 7 (Employee commuting).
Fuel- and energy-related activities, especially electricity sold to end users and heat purchased
for distribution, is the major source of GHG emissions. Electricity sales volumes are based on
sales contracts, for which Fortum has a balance responsibility. The volumes for GoOs are based
on internal databases. Some business-level estimates have been made as the purchase of GoOs
for the reporting year is possible until the end of March of the following year. Emissions are
calculated for that part of the total volume of electricity sales from which the GoO- certified
volume has been subtracted. The emission factor source for sold electricity is the country-
specific emission factor for the most recent year published by AIB.
Total volume of external heat distributed to customers is reported based on the heat volumes
distributed and sold to end users, and supplier-specific emission factors.
Emissions from fuel value chains include emissions from fuel production (e.g. mining, refining
and processing), fuel transportation and storage. Emission factors from international and
national sources have been applied for each part of the value chain.
GHG emissions from joint ventures and associated companies are included in either Scope 3,
category 1 (Companies providing products or services) or Scope 3, category 3 (Companies
producing electricity). GHG emissions data for investments is obtained directly from the
respective company and includes data for 2023. See also section 1.2.2 Reporting scope.
Fortum’s GHG inventory includes all relevant Scope 3 categories. Categories 13 (Downstream
leased assets) and 14 (Franchises) are not material, as Fortum does not have these kinds
of activities. 
63
2.3 Pollution
2.3.1 Introduction to pollution
Energy production generates emissions to the environment. Fortum controls emissions to air,
water and soil caused by its operations and aims to reduce environmental impacts by fuel
switching and using technological solutions and flue-gas cleaning technologies.
2.3.2 Material impacts, risks and opportunities for pollution
Fortum has identified the following material negative and positive pollution-related impacts in
the double materiality assessment. For more information on the double materiality assessment
process, see 1.4 Double materiality assessment.
IRO reference
Description
Negative impacts
IRO E2.1
Air pollution due to nitrogen oxides (NOx) and sulphur dioxide (SO2) emissions produced in
fuel combustion . NOx and SO2 are acidifying substances that interact with water, oxygen and
other chemicals in the atmosphere to form acid rain, which harms sensitive ecosystems such
as lakes and forests. NOx emissions may also cause eutrophication by negatively affecting
nutrient balance.
IRO E2.2
Potential negative impact on the environment when using substances of concern (SoC)/very
high concern (SVHC) in operations. When SoC/SVHC are used as process chemicals, small
amounts may enter nature within the limits allowed by environmental permits.
Positive impact
IRO E2.3
Battery metal recovery prevents substances of concern from ending up to the environment.
Fortum's battery recycling solution recycles over 95% of the valuable metals contained in the
battery's black mass and can be put back into circulation, instead of ending up as waste.
Combustion processes in energy production generate emissions to air. The EU has set very strict
limits for flue-gas emissions; meeting the requirements necessitates the use of Best Available
Techniques (BAT). The BAT Reference (BREF) document sets stricter emission standards that
European power plants must meet, unless they obtain a formal derogation.
All Fortum’s power plants operate in compliance with the terms of their environmental permits
and the requirements in the environmental management standard, and all production sites are
ISO 14001 certified.
Fortum continuously measures emissions; deviations to environmental permit limits are
internally investigated and reported to authorities. Major non-compliances and major leaks or
spills into the environment are classified and treated as major environmental incidents.
2.3.3 Policies on pollution
The key policy to address the management of material impacts related to pollution prevention
and control is the Sustainability Policy. Fortum aims to prevent pollution by adopting cleaner
technologies, optimising processes, and reducing waste generation, where feasible. Fortum
strives to minimise and reasonably control and manage emissions and impacts of pollutants to
air, water and soil. The Sustainability Policy does not specifically mention SoC, but Fortum
considers them to be included in the pollutants.
The Supplier Code of Conduct outlines the requirements for Fortum’s suppliers and business
partners, including the requirement to continuously minimise waste and emissions to air, water
and soil. 
Instructions and Minimum Requirements for EHS (environment, health and safety) Management
includes the definition of major environmental incidents and guidelines for identifying these, as
well as for limiting and continuously reducing the use of hazardous chemicals. 
Environmental sustainability, including pollution, is also incorporated in the other related
policies, instruction and manuals outlined in section 2.1.2 Policies on environmental matters.
2.3.4 Targets for pollution
Fortum’s targets related to pollution and performance against the targets is presented in the
table below:
Measure
Base year
Base-year
value
Target
year
2024
Change
compared
to base
year, %
20% reduction in nitrogen oxides (NOx)
emissions 1)
kg
2023
1,546,865
2030
1,378,084
-11
40% reduction in sulphur dioxide (SO2)
emissions 1)
kg
2023
849,418
2030
616,604
-27
No major environmental incidents and
no major non-compliance cases 2)
Number of
incidents
N/A
N/A
Annual
1
N/A
1) Base-year and current-year values exclude the recycling and waste business divested in November 2024. Base-year
values have not been assured.
2) Common target with water.
To minimise negative impacts from air pollution, Fortum has set a target to reduce emissions of
nitrogen oxides (NOx) and sulphur dioxide (SO2) by 2030. These substances are produced in the
chemical reactions in the combustion process based on, e.g., the impurities of the fuel. Targets
include emissions from all power plants and operations as described in section 1.2.2 Reporting
scope.
NOx and SO2 emissions decreased in 2024 compared to 2023. The most significant changes
were due to the closure of the Suomenoja coal-fired CHP plant and the reduction of coal use at
the Meri-Pori condensing power plant, resulting in a reduction of approximately 170 tons of NOx
emissions and 230 tons of SO2 emissions.
In addition, Fortum aims to reduce its’ overall environmental impacts and, therefore, has set a
separate target to track major environmental incidents and compliance with site-specific
64
environmental permits. According to the definition, a major environmental incident is an incident
that resulted in significant harm to the environment (ground, water, air) or environmental non-
compliances with legal or regulatory requirements. Major environmental incidents are
monitored, reported and investigated, and corrective actions are implemented to prevent
similar cases in the future. In 2024, there was one major environmental incident, a major leakage
of extinguishing water into the environment in connection with a large fire in an energy waste
bunker in Turku, Finland. The financial effect of related corrective actions is not material.
Fortum aims to reduce the use of SoC, including SVHC, by 2030 and is working on setting a
concrete target for this. These substances are used as process, laboratory and maintenance
chemicals, or as a part of chemical products. Fortum will gradually assess the possibilities to
replace these chemicals with less hazardous substitutes.
All pollution-related targets are voluntary, meaning that they are not required by other
legislation applicable to Fortum.
2.3.5 Actions and resources for pollution
Fortum’s climate target to reduce Scope 1 and 2 GHG emissions intensity for power and heat
production will achieve a corresponding reduction in pollution to air from own operations. For
more details on Fortum’s GHG emission reduction targets, see 2.2.5 Targets for climate change
and 2.2.7 Actions and resources for climate change.
In addition to the above, the following actions are ongoing and planned to address pollution-
related targets:
Actions during the year
Action
Timing
Total cost/
investment
Cost/
investment
in 2024
Implementation of chemical management system in Poland
The Polish sites implemented a chemical management
system, and now all sites are in the same chemical
management system.
2024
Not significant
Not significant
Identification and substitution of substances of concern and
very high concern
The SoC and SVHC used or produced were identified and the
amounts calculated in order to direct measures to replace
the harmful chemicals in the future. Some business units
already started replacing SVHC in 2024.
2024–2030
Not significant
Not significant
Planned future actions
Actions
Internal process for investigating environmental incidents will be reviewed and strengthened with an aim of
preventing future incidents.
Identification and substitution of substances of concern and very high concern
using the chemical management system will start with an assessment of the SoC/SVHC used as maintenance
chemicals and will continue with an assessment of laboratory and process chemicals.
2.3.6 Metrics for pollution
The material pollution-related sub-topics for Fortum are pollution of air and use of SoC and
SVHC. Pollution of water and soil, as well as production of microplastics are not material.
Emissions to air
Emissions to air are presented in the table below. Emissions include those power plants and
production facilities where annual emissions exceed the threshold presented in Annex II of
Regulation (EC) No 166/2006 of the European Parliament and the Council. Facilities with
emissions below the threshold are excluded. Sulphur dioxide and nitrogen oxide emissions from
power plants and operations are reported above in section 2.3.4 Targets for pollution.
Substance, kg
2024
Chromium to air
102
Hydrofluorocarbons
103
Hydrogen chloride
39,100
Sulphur dioxide
417,000
Nitrogen oxides
1,726,489
65
Substances of concern (SoC) and very high concern (SVHC)
Substances of concern used by Fortum mainly consist of a few high-volume process chemicals
and fuels, which are detailed below. In addition, Fortum had a total of over 2,400 products in
use, which are used as process, laboratory and maintenance chemicals and contain SoC as
components. The total amount of these components is shown in the ‘Other’ category. Fortum
also recycles battery materials, and the feedstock materials consists SoC. The total amount of
these materials is described separately at the end of the table below.
Material Substances of Concern, annual consumption, t
2024
Used in production
Ammonia (CAS 7664-41-7) 3)
125
Ammonium persulphate (CAS 7727-54-0) 2)
150
Ferrous sulphate, heptahydrate (CAS 7782-63-0) 2)
303
Heavy fuel oils 1,2,3)
13,033
Light fuel oils/diesel fuels 1,2,3)
6,239
Cement (65997-15-1) 2)
27
Other 4)
67
Total used in production
19,944
Used as a feedstock in battery material recycling
Black mass and NCM precursor
179
Total used as a feedstock
179
1) Carcinogenicity categories 1 and 2: H350, H350i, H351; Germ cell mutagenicity categories 1 and 2: H340, H341;
Reproductive toxicity categories 1 and 2: H360, H360F, H360D, H360FD, H360Fd, H361, H361F, H361d, H361fd.
2) Respiratory sensitization category 1: H334; Skin sensitisation category 1: H317; Specific target organ toxicity - repeated
exposure categories 1 and 2: H372, H373; Specific target organ toxicity – single exposure categories 1 and 2: 370, H371;
Endocrine disruptors.
3) Chronic hazard to the aquatic environment categories 1 to 4: H410, H411, H412, H413; Hazardous to the ozone layer: H420.
4) Lubricants, gasoline, solvents, other maintenance chemicals, water treatment chemicals, antifoam agents, fire-
extinguishing agents, antifreeze agents, coolants, laboratory chemicals, including over 2,400 different trade names of
chemicals containing SoC as components. Hazard categories are not specified.
SVHC used by Fortum includes two low-volume process chemicals, boric acid and hydrazine.
Boric acid is used in nuclear power production in pressurised water reactors as a soluble neutron
absorber to control reactor reactivity. Hydrazine is used as a corrosion inhibitor to remove
oxygen in water, in boilers and district heating waters. In addition, Fortum had over 150 products
in use, which are used as laboratory and maintenance chemicals and contain SVHC as
components. The total amount of these components is shown in the ‘Other’ category. Fortum
recycles battery materials, and the end product consists of SVHC as constituents.
Material Substances of Very High Concern, annual consumption, t
2024
Used in production
Boric acid (CAS 10043-35-3, 1303-96-4) 1)
7
Hydrazine (CAS 7803-57-8/10217-52-4) 1,2,3)
2
Other 4)
1
Total used
10
Produced when recycling battery material
Metal sulfates in solution 1,2,3)
455
Total produced
455
1) Carcinogenicity categories 1 and 2: H350, H350i, H351; Germ cell mutagenicity categories 1 and 2: H340, H341;
Reproductive toxicity categories 1 and 2: H360, H360F, H360D, H360FD, H360Fd, H361, H361F, H361d, H361fd.
2)Respiratory sensitization category 1: H334; Skin sensitisation category 1: H317; Specific target organ toxicity - repeated
exposure categories 1 and 2: H372, H373; Specific target organ toxicity – single exposure categories 1 and 2: 370, H371;
Endocrine disruptors.
3)Chronic hazard to the aquatic environment categories 1 to 4: H410, H411, H412, H413; Hazardous to the ozone layer: H420.
4)Maintenance chemicals, heat transfer fluids, oils and laboratory chemicals, including over 150 different trade names of
chemicals containing SVHC substances as components. Hazard categories are not specified.
Reporting principles
Emissions to air include all heat and power plants and production facilities in all operating
countries. Emissions to air are reported for those facilities where annual emissions exceed the
threshold presented in Annex II of Regulation (EC) No 166/2006 of the European Parliament and
the Council. Nitrogen oxides and sulphur dioxide emission reduction targets include all facilities
regardless of whether they exceed the threshold or not. Emissions exceeding the threshold from
Fortum's recycling and waste business are included in the disclosed annual emissions, but
excluded from the target figures for the years 2023 and 2024.
Fortum measures and monitors emissions for each site in accordance with environmental permit
requirements and local regulations. Site-specific data is collected to an internal database,
compared to the threshold and consolidated at Group level.
Reported emissions to air are mainly based on continuous on-site measurements and
calculations based on e.g. measured concentrations and flue-gas volume. In addition, periodic
sampling can also be used for emissions measurement.
66
2.4 Water
2.4.1 Introduction to water
Water availability is a prerequisite for Fortum’s operations where cooling water, in particular, is
withdrawn from the sea and discharged back at nuclear and other condensing power plants.
Fortum has also hydropower operations where water runs through the hydropower turbines with
no significant changes in the water quality and quantity. Fortum’s responsibility for water use is
related not only to water volume and availability, but also to its quality and to the aquatic
habitat.
Fortum does not include river flows through hydropower turbines in water metrics. Fortum has
very limited own operations in water-stressed areas, mainly located in Poland.
2.4.2 Material impacts, risks and opportunities for water
Fortum withdraws and discharges large amounts of water in its operations. Fortum’s has
identified two material water-related negative impacts in the double materiality assessment. For
more information on the double materiality assessment process, see 1.4 Double materiality
assessment.
IRO reference
Description
Negative impacts
IRO E3.1
Water withdrawal and discharge related to power and heat production, mainly, for cooling
purposes. 98% of Fortum’s water withdrawal is seawater for cooling, especially for nuclear and
condensing power production, and it is usually discharged back into the same water system
without consumption. The majority of water withdrawal takes place at the Loviisa nuclear
power plant in Finland and is used for cooling. In addition to cooling, fresh water and seawater
are used, e.g., in other power plant processes, in waste treatment and in district heating
networks. Wastewater is discharged within the permit limits to minimise environmental
impacts.
IRO E3.2
Impact of hydropower production on the fluctuation range and rhythm of the water discharge
and water levels in waterways, having negative environmental and social impacts. Water
regulation for flood control, on the other hand, has positive impacts for local residents.
Fortum has co-owned nuclear and hydro assets, which have similar impacts.
At the local level, water-related actions are guided by certified environmental management
systems and the plants’ environmental and other permits. Permit regulations affect, e.g., the
water intake volume, the quality of discharged water, as well as water flows and water levels at
hydropower plants. Fortum monitors the use of water and aims for efficient use by, e.g.,
decreasing water consumption and by recycling water, where feasible.
Fortum has precise knowledge of the water situation in those waterways where it produces
hydropower, and uses real-time hydrological forecasts in production planning. Fortum carries
out water-related measures locally in order to take into consideration the needs of other water
users as well.
2.4.3 Policies on water
The key policy addressing the management of material impacts related to water is the
Sustainability Policy, which addresses water management, optimisation and efficient use of
water in own operations, including reducing fresh-water use, as well as prioritising the recycling
of water especially in areas of high water stress, where feasible. The Sustainability Policy guides
the minimisation of the negative impacts of Fortum’s activities on water quality and the
implementation of measures to prevent pollution, decrease water consumption and maintain the
health of local water bodies.
The Sustainability Policy is accompanied by instructions and guidelines that address the
management of impacts in case of incidents and emergency situations. Additionally, water
management is addressed in Instructions and Minimum Requirements for EHS Management.
The Biodiversity Manual, defining the company’s principles related to biodiversity, also
addresses the management of water-related biodiversity impacts. The Supplier Code of Conduct
outlines the requirements for suppliers and business partners, including the requirement to
continuously reduce the use of water and to minimise waste and emissions to water.
Environmental sustainability, including water-related sustainability, is also incorporated in the
other related policies, instructions and manuals outlined in section 2.1.2 Policies on
environmental matters.
Fortum is a co-owner in a nuclear power plant in Forsmark, Sweden, which is located in an area
of extremely high water stress. Fortum does not have operational control of Forsmark and,
therefore, it is not covered by Fortum’s water-related policies, nor is it included in the water
metrics.
2.4.4 Targets for water
Fortum’s water-related targets are:
• No major environmental incidents and no major non-compliance cases, common target with
pollution. See 2.3.4 Targets for pollution.
• Commitment to continue local initiatives and participate in the development of a science-
based methodology to assess the aquatic impacts of hydropower, common target with
biodiversity. See 2.5.4 Targets for biodiversity.
The first target includes, e.g., non-compliances related to water regulation and water withdrawal
and discharge, as well as leakages. The target covers material impacts of water withdrawal and
67
discharge, especially for cooling, as well as the impact of hydropower construction and use on
water flow and water levels, but also the broader water use in Fortum’s operations.
The second target covers the material impact of hydropower construction and production and
aims at mitigating these impacts.
The targets do not directly aim to reduce water consumption, but the first target also covers
water consumption-related non-compliances. It also covers Fortum’s operations in water-
stressed areas. Both water-related targets are voluntary, meaning that they are not required by
legislation.
2.4.5 Actions and resources for water
Actions during the year
In 2024, the implementation of the coal exit by 2027 -target resulted in decreased water use at
the coal-fired condensing power plant in Meri-Pori, Finland, as well as in the production of
electricity and district heating in Espoo, Finland. These actions are described in section 2.2.7
Actions and resources for climate change.
In addition, the following actions are ongoing and planned to address water-related targets:
Action
Timing
Total cost/
investment
Cost/
investment
in 2024
Modernisation of a water treatment system at energy
production sites in Czestochowa, Poland
In the water-stressed area, municipal water is used mainly as
process water for the production of heat and electricity, and
to replenish losses in the heating network. In order to reduce
water withdrawal, part of the used water is recycled back to
the processes. The 2024 modernisation will have a positive
impact on water quality and is estimated to reduce water
withdrawal by 2400 m3 annually in the medium- and long-
term.
2024–2025
Not significant
Not significant
New fish farm in Gammelkroppa, Sweden, taken
into operation
In the land-based facility, water circulates in a closed
system, reducing water withdrawal by about 90% compared
to a standard run-off fish farm.
2021–2025
Not significant
Not significant
Planned future actions
Climate transition plan actions will decrease water consumption intensity in the future. These
actions are described in section 2.2.6 Transition plan for climate change mitigation.
Actions to achieve the target ‘Commitment to continue local initiatives and participate in the
development of a science-based methodology to assess the aquatic impacts of hydropower’ are
described in section 2.5.6 Actions and resources for biodiversity. The management of
environmental incidents and non-compliances are covered in section 2.3.4 Targets for pollution.
2.4.6 Metrics for water
The relevant water-related indicators are related to water consumption, water recycling and
reuse, water withdrawal and water discharge. Water withdrawal describes water intake, and
water consumption is water that is not discharged back to nature or to some other destination. 
Water consumption and other relevant water metrics are presented in the tables below:
Water consumption
m3
2024
Total water consumption
966,566
Total in areas at water risk
54,900
Total per net sales (EUR million)
167
Total water recycled and reused
3,365,290
Fortum’s water consumption includes, e.g., water leakage from district heating networks and
water used in processes at waste recycling facilities and power plants.
According to the WRI Aqueduct Water Risk Atlas, accessed in September 2024, Fortum’s CHP
plant and heat boilers in Czestochowa, Poland are located in an area of extremely high (80–
100%) water stress. Total water consumption in areas at water risk refers to this site and
accounts for 5.7% of total water consumption. In 2024, Fortum recycled or reused 3,4 million m3
of water.
Water withdrawal in production operations
m3 million
2024
Cooling
Seawater
1,397.6
Fresh surface water
0.1
Total for cooling
1,397.7
Other use
Fresh surface water
24.8
Municipal water
1.0
Rainwater, stormwater and seepage
0.7
Seawater
0.3
Groundwater
0.1
Other external water supplier, fresh water
0.3
Total for other use
27.2
Total
1,424.8
68
Water discharge by recipient
m3 million
2024
Cooling discharge
Sea
1,397.7
Fresh surface water
0.1
Total cooling discharge
1,397.8
Discharge, other than cooling
Fresh surface water
24.9
Sea
0.6
Municipal sewage
0.4
Water or steam to external customers
0.2
Total discharge, other than cooling
25.9
Total
1,423.9
Fortum's total water withdrawal in 2024 was 1,425 million m3, of which sea water for cooling
accounted for 98%. In addition, fresh surface water, municipal water and groundwater are used.
Fortum's water metrics also include rainwater, stormwater and seepage, which is not used, but
collected only to be discharged.
Majority of Fortum's water discharge is sea water used for cooling that is released back into the
sea. Other water discharge includes process water and wastewater. In total, Fortum discharged
1,424 million m3 of water in 2024.
Reporting principles
Water metrics include all heat and power plants and other production facilities in all operating
countries. Fortum measures and monitors water withdrawal and discharge for each site in
accordance with environmental permit requirements and local regulations. The majority of water
withdrawal and discharge data are sourced from direct measurement; a minor part is based on
estimations and calculations.
Total water consumption is calculated as a difference between total water withdrawal and total
water discharge. Total water consumption in areas at water risk refers to water consumption at
sites in areas of high or extremely high water stress based on the WRI Aqueduct Water Risk
Atlas. 
Total water consumption per net sales is calculated as total water consumption in Fortum’s
operations in m3 per net sales (EUR million).
2.5 Biodiversity and ecosystems
2.5.1 Introduction to biodiversity
Biodiversity is the variety of all living things. It supports all systems of life on earth and is a vital
factor for the wellbeing and economic prosperity of people and businesses. The degradation of
biodiversity is one of the greatest environmental problems globally. All operations, including
Fortum’s, have an impact on biodiversity. Fortum acknowledges the need to identify and take
responsibility for its impacts and dependencies related to biodiversity and ecosystem services.
2.5.2 Material impacts, risks and opportunities for biodiversity
Fortum has identified four material biodiversity-related negative impacts in the double
materiality assessment. For more information on the double materiality assessment process, see
1.4 Double materiality assessment. 
IRO reference
Description
Negative impacts
IRO E4.1
Aquatic impact from hydropower production in Finland and Sweden. Hydropower production
alters the fluctuation range and rhythm of the water discharge and level in waterways. The
damming of rivers has a barrier effect and causes a discontinuation in the natural flow of
rivers. This causes negative impacts, e.g., on the migration and drifting of fish and of other
fauna and ecological substances; some of the impacted species are threatened. This also has a
negative impact on natural habitats, e.g., breeding grounds for migratory fishes, ecosystems
as a whole, erosion, and flora and fauna. Impacts may occur in the rivers and also in the
riparian zone.
IRO E4.2
Biodiversity impact through climate change pressure from the trading of electricity.
Producing GHG emissions in the production of electricity purchased from the market and sold
to end-users as unbundled with Guarantee of Origin certificates generate negative impacts
through global warming. The mechanism is global, but the impact is local.
IRO E4.3
Biodiversity loss through climate change pressure and land use change from fuel
procurement. The impact relates to Fortum’s heating and cooling operations both in Finland
and Poland. The production of fuel, both bio- and fossil-based, used in power and heat
production affects biodiversity through land use, resulting in changes in and loss and
degradation of the natural environment, as well as the loss of natural resources. These local-
scale impacts are most evident and recognisable. Also, emissions from the production of used
fuels, as well as the energy production, accelerate climate change, and while the impact
mechanism is global, the effect on biodiversity is local.
IRO E4.4
Land use impact from construction. The impact is potential and real with all operations
requiring change in land use, such as new wind and solar power production. This includes
changes in and loss of the natural environment at construction sites. In addition, the impact
increases from fragmentation and encroachment. The operational stage of wind power
production can also have impacts on avifauna (mainly birds and bats) through collision risk and
changes in migration routes.
Fortum has not identified direct negative impacts from its operations on land degradation,
desertification or soil sealing. Some impacts may occur through climate change pressure, but
these cannot be specified and hence have not been assessed as material.
69
Impacts are managed as described in biodiversity-related policies. Mitigation of the impacts is
done according to the steps of the ecological mitigation hierarchy. Mitigation of negative
impacts is done through voluntary and obligatory actions, e.g., fish passage and transportation
solutions and fish stockings in connection with hydropower production. To mitigate the negative
impact from changes in land use, Fortum favours areas of low biodiversity values for new
operations that require change in land use. An assessment of biodiversity impacts is also
included as a part of the investment assessment.
2.5.3 Policies on biodiversity
The key policies to address the management of material impacts related to biodiversity and
ecosystems are the Code of Conduct, the Supplier Code of Conduct and the Sustainability
Policy. These policies address the assessment and reduction of negative impacts on the natural
environment according to the ecological mitigation hierarchy.
According to the Sustainability Policy, Fortum conserves biodiversity by avoiding activities that
harm ecosystems and species. In addition, Fortum aims to restore or mitigate the impacts
caused by operations whenever possible, and to offset impacts, if needed. Fortum also strives
for active collaboration on the impacts in partnership with local communities and around its
plants, as outlined in section 3.4.6 Engaging with affected communities on impacts.
The Supplier Code of Conduct outlines the requirements for suppliers and business partners,
including the requirement to continuously minimise waste and emissions to air, water and soil in
their operations and to mitigate impacts on biodiversity. Suppliers are also responsible for
ensuring and monitoring their sub-suppliers’ compliance with the principles of the Supplier Code
of Conduct.
The key policies are accompanied by instructions and guidelines that address the management
of material impacts related to biodiversity and ecosystems. The Biodiversity Manual defines
principles related to biodiversity. As described in the manual, biodiversity issues are
systematically considered as a part of environmental management processes and operations.
The manual contains specific instructions for biodiversity issues in current operations, new
projects and the supply chain, as well as for reporting and communication. Fortum also has
Forest Management Guidelines that define a framework for the sustainable use of Fortum-
owned forests. The purpose of the guidelines is to provide direction for forest management to
enable Fortum to increase the overall value of the biodiversity of forests and to shoulder
responsibility in halting global biodiversity loss. Biodiversity-related policies are adopted across
all operations. Environmental sustainability, including biodiversity, is also incorporated in the
other related policies, instructions and manuals outlined in section 2.1.2 Policies on
environmental matters.
Fortum has not adopted a specific protection policy on operating in or near protected areas or in
areas of high biodiversity value outside protected areas. However, Fortum does take identified
negative impacts into account in operations, as defined in the Biodiversity Manual. Though
Forest Management Guidelines are in place, Fortum does not have a specific policy on
sustainable land use, agriculture practices, ocean and sea practices, or policies to address
deforestation. The biodiversity policies do not specifically address the direct impact drivers on
biodiversity loss, production, sourcing or consumption from ecosystems that are managed to
maintain or enhance conditions for biodiversity.
2.5.4 Targets for biodiversity
Fortum has set the following targets related to the material impacts on biodiversity:
• No net loss of biodiversity from existing and new operations in Scopes 1 and 2 from 2030
onwards, excluding all aquatic impacts.
• 50% reduction in dynamic terrestrial impacts in upstream Scope 3 by 2030 compared to base-
year 2021.
• Commitment to continue local initiatives and participate in the development of a science-
based methodology to assess the aquatic impacts of hydropower, common target with water.
See 2.4.4 Targets for water.
When setting the targets, ecological planetary boundaries were considered, though specific
thresholds towards local biodiversity values were not assessed. The use of biodiversity offsets is
expected to be needed to meet the set targets. Fortum is committed to following the steps of
the ecological mitigation hierarchy when defining mitigation actions and/or offsets. To reach the
target ‘No net loss of biodiversity from existing and new operations in Scopes 1 and 2 from 2030
onwards, excluding all aquatic impacts’, it is expected that offsets are needed to mitigate the
negative impact through change in land use. Mitigation actions, including possible
compensation actions, will be assessed with science-based methods.
Fortum has actively followed the biodiversity related policy and regulatory agenda, the public
discussion, including the development of concrete actions to implement the EU Biodiversity
Strategy for 2030, as well as the Kunming-Montreal Global Biodiversity Framework. Fortum
supports these policies and the high ambitions to protect and restore species and habitats.
When setting targets, topical international frameworks as well as national policies and
legislation were considered. Although the targets are not aligned with the Kunming-Montreal
Global Biodiversity Framework, or the EU Biodiversity Strategy for 2030, Fortum's biodiversity
actions and targets are contributing to meet these global targets.
See the next section for performance against the targets.
70
2.5.5 Transition plan for biodiversity
In 2023, Fortum finalised the biodiversity footprint assessment (BFA), using the Global
Biodiversity Score® (GBS®) tool. As a result of the assessment, Fortum has mapped its
biodiversity-related dependencies and impacts, covering direct operations and its value chain.
Due to the limitations in the methodology, the aquatic impact of hydropower production could
not be assessed and quantified. In 2025, Fortum is planning to conduct a biodiversity footprint
assessment for 2024 to measure how its impact has changed.
According to the results of the biodiversity footprint assessment, on a global scale, Fortum’s
main terrestrial biodiversity impacts are related to the impacts from GHG emissions, land use
and fuel procurement. Reducing emissions is a key lever to reduce negative impacts on
biodiversity. See 2.2.6 Transition plan for climate change mitigation.
In addition, Fortum has identified negative impacts on biodiversity from change in land use and
from new growth that requires change in land use, e.g., new wind and solar power production.
High-level actions to meet the biodiversity targets are identified through a biodiversity
evaluation included in the investment process. A more detailed biodiversity transition plan is
under development, estimated to be ready during 2025.
No net loss of biodiversity from existing and new operations in Scopes 1 and 2 from
2030 onwards, excluding all aquatic impacts
In the ongoing operations, the main lever for the target is to reduce Scope 1 GHG emissions in
line with the climate transition plan. Scope 1 and 2 GHG emissions decreased during 2024.
In addition, Fortum is developing a process to analyse the biodiversity footprint and to assess
biodiversity impact mitigation possibilities for adverse impacts of new growth in order to reach
the target. Identified impacts will be mitigated by following the ecological mitigation hierarchy
when deciding on actions.
To support the transition, Fortum is also improving the biodiversity value of existing assets by,
e.g., implementing new guidelines for the management of owned forests. The new sustainable
Forest Management Guidelines are expected to show as a positive impact over time.
50% reduction in dynamic terrestrial impacts in upstream Scope 3 by 2030 compared
to base-year 2021
The main lever for the target is to reduce Scope 3 GHG emissions in line with the climate
transition plan. This includes reducing the burning of fuels and increasing the share of
Guarantee of Origin-certified electricity sales. In 2024, Scope 3 GHG emissions decreased due to
the increased sales of GoO certified electricity. However, the impact is expected to have
increased from the previous assessment, mainly due to the increased sales of electricity. Fortum
is planning to conduct a biodiversity footprint assessment for 2024.
In addition, Fortum is developing a process to assess the biodiversity impact of procurement.
Commitment to continue local initiatives and participate in the development of a
science-based methodology to assess the aquatic impacts of hydropower
With regard to this target, Fortum has in 2024 continued to implement local initiatives,
especially in hydropower. In addition, Fortum, together with partners, has worked on developing
a science-based methodology to assess the aquatic impacts of hydropower, e.g., through case
studies. Similar actions are also planned in the future. See section below for further details.
2.5.6 Actions and resources for biodiversity
The Biodiversity Action Plan containing ongoing and planned voluntary biodiversity-related
measures is updated annually. The Biodiversity Action Plan describes Fortum’s goals,
responsibilities, timelines and partners for local-scale biodiversity projects.
Actions are ongoing and planned to mitigate negative biodiversity impacts and to address
biodiversity-related targets. However, actions are not validated with science-based methods,
hence they cannot be considered as offsets in accordance with the steps of the ecological
mitigation hierarchy. Fortum actively engages local communities, including indigenous people,
where relevant, although Fortum has not specifically sought local and indigenous knowledge
when determining biodiversity actions.
Ongoing and planned actions to address biodiversity-related targets are presented in the
following table:
71
Actions during the year
Action
Timing
Total cost/
investment
Cost/
investment
in 2024
Development work to measure hydropower’s aquatic
biodiversity impacts continued by participating in developing the
aquatic segment of the Global Biodiversity Score® (GBS®) tool,
and assessing other potential tools and approaches.
Furthermore, Fortum has conducted a pilot study in Emäjoki,
Finland to develop a Water Nature Index for quantifying the
impact of hydropower production and significance of planned
bypass solution in Seitenoikea, to aquatic biodiversity in the river
system, as well as run case studies for selected rivers in Sweden
in accordance with the National Plan for Modern Environmental
Conditions for Hydropower (NAP) process to better understand
the biodiversity impact and ensure actions are following the
steps of the ecological mitigation hierarchy.
Ongoing
Not significant
Not significant
Case studies to assess biodiversity impact of projects. In 2024,
case studies were started in the wind power project in Borgvik,
Sweden, the solar power project in Tarvasjoki, Finland, and the
heat storage facility in Nuijala, Finland. The studies aim to create
a process to analyse the biodiversity footprint and assess
biodiversity impact mitigation possibilities (for adverse impacts)
in order to reach the corporate-level No Net Loss target from
2030 onwards. In Tarvasjoki and Nuijala, Fortum is also modelling
the implementation and validation of possible concrete
biodiversity measures and their effectiveness.
Ongoing
Not significant
Not significant
Fortum continued to carry out voluntary and licence-related
biodiversity measures to prevent negative impacts and, where
possible, to implement biodiversity improvement measures,
including:
• Removing dams with limited energy benefits to the energy
system in river Uvån, Sweden.
• Habitat improvements around hydropower plants in rivers
Dalälven, Klarälven and Ljusnan.
• Pre-study for a fish passage at the Hennan, Sweden, regulating
dam.
• Release of young salmon and sea trout in the tributaries of river
Oulujoki, Finland.
• Continued planning of the Seitenoikea fish passage in river
Emäjoki, Finland.
• Continued operation of the Fishheart solution for upstream
passage of fish at the Leppikoski hydropower plant and at river
Oulujoki, Finland.
• Continued operation of the Montta fish trap to trap and
transport mature salmon to the improved spawning areas in
the tributaries upstream of several dams in river Oulujoki,
Finland.
2024
Not significant
Not significant
Planned future actions
• Fortum will continue working with its biodiversity strategy development to identify and
implement actions needed to achieve the biodiversity targets. High-level actions will be
identified; as explained above, the biodiversity transition plan is under development.
• Fortum is committed to applying a science-based approach when setting its biodiversity
targets also related to the impact of hydropower. As Fortum is currently not aware of
methodologies of sufficient quality, it continues to participate in the development of science-
based tools to assess the aquatic biodiversity impacts of its hydropower production. In the
absence of quantifying tools supporting science-based criteria, Fortum will continue building a
process to qualitatively assess the aquatic impact and mitigation possibilities following the
steps of the ecological mitigation hierarchy at the river level. In addition, Fortum will continue
the work on voluntary and licence-obligated biodiversity projects.
2.5.7 Metrics for biodiversity
Fortum has hydropower operations in or near biodiversity-sensitive areas that are potentially
negatively impacted. The potential negative impact is identified at a total of 27 hydropower
plants. The impact on biodiversity-sensitive areas is connected to the general environmental
impact from hydropower production. See 2.5.2 Material impacts, risks and opportunities for
biodiversity.
The biodiversity-sensitive areas identified to have a negative impact are areas that are included
in the Natura 2000 network. Fortum has implemented or is planning to implement actions to
mitigate the possible negative impact on the affected Natura 2000 areas. Mitigation actions are
aligned with the actions determined in the conservation plan of the area of concern. In Sweden,
the mitigation actions will be addressed in connection with the implementation of the National
Plan for Modern Environmental Conditions for Hydropower.
The ecological potential or status of water bodies, based on the Water Framework Directive, in
hydropower plants operating in biodiversity-sensitive areas in Sweden is poor or moderate.
However, Fortum’s operations do not have an impact on the ecological state or the conservation
values of the sites from the current situation. All identified impacts are included in the
EU Taxonomy analysis of aligned economic activities and all Fortum's own hydropower plants
fulfil the DNSH (do no significant harm) criteria.
Sites in or near biodiversity-sensitive areas or key biodiversity areas at 31 December 2024 are
presented in the following table:
72
River
Hydropower plant
Operational
area, ha
Biodiversity-sensitive areas in or near operations
(Natura 2000)
Sweden
Klarälven
Höljes
Dejefors
Edsforsen
Forshaga
Forshult
Krakerud
Munkfors
Skymnäs
Skoga
40.2
SE0610169 Klarälven, övre delen
SE0610190 Klarälvsdeltat
SE0610221 Noret
Gullspångsälven
Gullspång
16.9
SE0540213 Gullspångsälven
Ljusnan
Sveg
Laforsen
Öjeforsen
Edeforsen
Halvfari
Långå 
10.7
SE0720291 Ljusnan (Hede-Svegsjön)
SE0630101 Mellanljusnan Laforsen-Korskrogen
SE0630223 Mellanljusnan Korskrogen-Edeforsen
Svartälven
Karåsen
Skråmforsen
Brattforsen
6.0
SE0240127 Torkesviken
SE0540213 Gullspångsälven
Letälven
Letten
Degerfors
Åtorp
5.0
SE0610169 Klarälven, övre delen
SE0610190 Klarälvsdeltat
SE0240181 Sveafallen
SE0540213 Gullspångsälven
Timsälven
Björkborn
Bofors
4.0
SE0540213 Gullspångsälven
Dalälven
Lanforsen
3.4
SE0630154 Spjutholmen
SE0210008 Båtfors
Glasälven
Glava
2.0
SE0610133 Rödvattnet-Majendal
Finland
Oulujoki
Jylhämä
1.3
FI1200104 Oulujärven saaret ja ranta-alueet
FI1200105 Oulujärven lintusaaret
FI1200801 Painuanlahti
Total
89.4
Reporting principles
When determining the impact on biodiversity-sensitive areas, Fortum has assumed that the
impact from an individual hydropower plant can affect the entire river system. Hence, the
potential negative impact may be allocated to several hydropower plants in the same river
system, even if there is one or more other hydropower plants or other dams between the
impacted area and the hydropower plant.
An area is assessed as having an impact from hydropower production if changes in hydrological
conditions or direct impacts from hydropower production are presented as a threat to the
conservation values of the area in concern. The approach is precautionary and the actual impact
may not occur for all presented sites.
The analysis of biodiversity-sensitive areas was performed using a customised tool in ArcGIS Pro
(Geographical Information System). The tool was based on a buffer and an intersection analysis
that made it possible to determine biodiversity-sensitive areas that were located in the site or
within a specified distance from the site. Biodiversity-sensitive area data (e.g. Natura 2000 SPA,
Conservation areas) were set as separate rules.
The operational area was defined using built-up areas in the analysis. If there were none, an
assumption of two hectares of operational area was used.
In addition, assessments made in conjunction with the EU Taxonomy reporting were utilised. The
identified sites and the possible negative impact on the biodiversity-sensitive areas was
reviewed individually.
2.6 Resource use and circular economy
2.6.1 Introduction to resource use and circular economy
A transition towards a circular economy is necessary to ensure the availability of natural
resources and to combat climate change. Fortum applies waste hierarchy principles in all
operations, including prevention, preparing for re-use, recycling, energy recovery, and
responsible disposal.
Fortum produces conventional non-hazardous and hazardous waste in its power plants and 
other own operations. In addition to conventional industrial waste, radioactive waste is also
produced at the Loviisa nuclear power plant in Finland, as well as in co-owned nuclear power
plants Olkiluoto in Finland, and Forsmark and Oskarshamn in Sweden.
2.6.2 Material impacts, risks and opportunities for resource use and
circular economy
In the double materiality assessment, Fortum identified one material negative impact related to
resource use and circular economy, as described below. For more information on the double
materiality assessment process, see 1.4 Double materiality assessment.
73
IRO reference
Description
Negative impacts
IRO E5.1
Producing radioactive waste in nuclear power plant operations. Radioactive waste is classified
as either low-level, intermediate-level or high-level waste, based on how it was created, its
original purpose and radioactivity level. If radioactive substances end up in the environment
through the processing, storage, transportation or disposal of radioactive waste, they may
cause severe environmental impacts. The same negative impact is also relevant for co-owned
nuclear power plants.
In addition to radioactive waste, Fortum also produces conventional non-hazardous and
hazardous waste in its power plants and other own operations.
Radioactive waste management
Waste management at the Loviisa power plant is comprised of two separate areas: waste
management for the non-controlled area and waste management for the controlled area. All
waste generated in the controlled area is treated as radioactive.
Waste generated in the controlled area is divided into three categories: low-level waste
(maintenance waste), intermediate-level waste (mainly liquid waste and small amounts of dry
waste, such as filters and probes), and high-level waste (spent fuel). Maintenance waste is
either cleared as non-active and treated as conventional waste or disposed of in the final
repository located at a depth of 110 metres in the power plant area.
Liquid waste is purified and released into the sea or stored and solidified in concrete and then
disposed of in the final repository.
Highly radioactive spent nuclear fuel is stored to await final disposal. Fortum and Teollisuuden
Voima Oyj have established Posiva Oy to handle the technical implementation of the final
disposal of spent nuclear fuel. Final disposal in the world’s first-ever deep geological repository
for spent fuel is scheduled to begin at Olkiluoto in Eurajoki, Finland, in the mid-2020s. The final
disposal of spent nuclear fuel from Loviisa will begin in the 2030s and from Olkiluoto in
the 2020s.
The processing of nuclear waste in Finland is governed by the Nuclear Energy Act, the Nuclear
Energy Decree, and the Government Decree on the Safety of Disposal of Nuclear Waste. With
regard to the management of radioactive substances, Fortum strives to keep any emissions well
below the emission limits set by the authorities.
In Sweden, Svensk Kärnbränslehantering AB (SKB) is responsible for the disposal of radioactive
waste from co-owned nuclear power generation. A spent fuel disposal facility is under
construction in Forsmark, Östhammar municipality, and is expected to be completed by the end
of this decade. After construction and a trial operation period it should be possible to start
disposal operations in the late 2030s.
See Note 29 Nuclear-related assets and liabilities for financial impact of radioactive waste
management.
Conventional waste management
Improving the management of conventional waste is done in close cooperation with local waste
management partners.
The greatest volume of waste produced by Fortum’s power plants is ash produced in the
combustion of solid fuels. Ash is the non-combustible residue of the fuel, containing mainly
minerals and metals.
Fortum's Battery recycling business uses a combination of mechanical and hydrometallurgical
technologies to recycle battery materials. The recovered battery chemicals – lithium, cobalt,
manganese and nickel – can be used by battery manufacturers in the production of new
batteries. It is possible to recycle over 80% of the battery and 95% of the valuable metals
contained in the battery black mass.
As part of the divested recycling and waste businesses, Fortum offered waste management
services for customers in the Nordic countries to increase material recycling and recovery and to
ensure safe disposal of non-recyclable waste fractions. This included the recycling of plastic
recyclate from post-consumer plastic waste, the processing and recycling of metals, the
treatment and processing of ash, dredging masses, slurry and contaminated water from energy
production and other industries for reuse, as well as the treatment of contaminated soil.
2.6.3 Policies on resource use and circular economy
The key policy to address radioactive waste management is the Nuclear Generation Safety and
Quality Policy. Additionally, nuclear power operations are governed by safety and quality
requirements imposed by legislation and authorities.
The key policies to address circular economy and the management of non-hazardous waste and
non-radioactive hazardous waste are the Code of Conduct and the Sustainability Policy. Fortum
adheres to the waste hierarchy, including prevention, preparing for re-use, recycling, energy
recovery, and responsible disposal. Fortum prioritises waste reduction strategies, such as re-
use, repair, refurbishment, remanufacturing, and repurposing, where feasible. Fortum also
assesses the lifecycle impact of its products and projects and aims to improve their resource
efficiency.
The Supplier Code of Conduct outlines the requirements for suppliers and business partners,
including the requirement to promote the circular economy and pay attention to the efficient
use of materials and the lifecycle impact of their products.
74
Environmental sustainability, including circular economy, is also incorporated in the other
related policies, instructions and manuals outlined in section 2.1.2 Policies on environmental
matters.
2.6.4 Targets for resource use and circular economy
Currently, Fortum has not set specific targets relating to resource use and circular economy.
Fortum has identified the radioactive waste generated by the operation of nuclear power plants 
as a material topic. Radioactive waste management is highly regulated by the authorities, and
the volume of the waste is dependent on the amount of nuclear power generated. Radioactive
waste is isolated from the environment in a reliable manner to prevent pollution to air, water and
soil, and negative impacts on living organisms. Nuclear waste management is conducted in
strict accordance with legislation and requirements from authorities.
2.6.5 Actions and resources for resource use and circular economy
Actions during the year
Action
Total provision
Change in
provision
in 2024
Radioactive waste management
Posiva (an associate) started testing the final disposal facility without actual
spent fuel. The equipment and systems of the disposal facility were tested
together for the first time in accordance with planned processes during the
trial run stage. The purpose of the trial run is to verify safe final disposal
before the start of the actual final disposal operation, estimated to commence
in the 2020s.
EUR 1,117
million
EUR 58 million
Nuclear provisions consist of estimated future decommissioning costs of Loviisa, Finland
nuclear power plant and estimated future disposal costs for fuel used (spent fuel). The
provisions are based on long-term cash flow forecasts. Changes in the provision include, e.g.,
updates in technical plans and cost estimates, impact of discounting of the provision, nuclear
waste related investments, as well as decommissioning measures and costs which have already
been included in the provision. See Note 29 Nuclear-related assets and liabilities for more
information.
In addition, exiting coal in own operations and reducing the use of fossil fuels in the production
of power and heat in accordance with the climate transition plan will significantly reduce the
amount of fossil fuels used and decrease the volumes of ash and other by-products generated in
combustion and flue-gas treatment processes. See section 2.2.7 Actions and resources for
climate change for details.
Planned future actions
Final disposal of spent nuclear fuel from the Loviisa nuclear power plant is estimated to begin at
Olkiluoto in Eurajoki, Finland, in the 2030s. Nuclear power companies cover the cost of nuclear
waste management, and the requisite funds are set aside in the State Nuclear Waste
Management Fund. See Note 29 Nuclear-related assets and liabilities.
2.6.6 Metrics for resource use and circular economy
Fortum monitors the volume of conventional non-hazardous and hazardous waste and
radioactive waste based on treatment or disposal method. Total volume includes both the waste
generated in own operations, as well as the non-recyclable customer waste that is treated by
the Circular Solutions business. The disclosures below include the recycling and waste business
until the date of disposal, 29 November 2024.
Waste generated
Waste generated is presented in the table below:
t or as indicated
2024
Non-hazardous waste, preparation for reuse
0
Non-hazardous waste, recycling
3,384,070
Non-hazardous waste, other recovery operations
12,255
Total amount of non-hazardous waste diverted from disposal
3,396,325
Hazardous waste, preparation for reuse
0
Hazardous waste, recycling
6,180
Hazardous waste, other recovery operations
609
Total amount of hazardous waste diverted from disposal
6,790
Non-hazardous waste, incineration
0
Non-hazardous waste, landfill
319,289
Non-hazardous waste, other disposal operations
0
Total amount of non-hazardous waste directed to disposal
319,289
Hazardous waste, incineration
0
Hazardous waste, landfill
233,486
Hazardous waste, other disposal operations
626
Total amount of hazardous waste directed to disposal
234,112
Total amount of non-recycled waste
566,266
Percentage of non-recycled waste, %
14
Total amount of hazardous waste generated
240,902
Total amount of radioactive waste generated 1)
626
Total amount of waste generated
3,956,517
1) Includes high-, intermediate- and low-level radioactive waste.
75
In 2024, the majority (86%) of waste produced was recyclable non-hazardous waste, including
construction materials, such as concrete and various metals, and recycled ash and slag. 34% of
the total volume of waste, 30% of non-hazardous waste and almost 100% of hazardous waste
was produced in the Circular Solutions business unit, which is responsible for recycling and
waste and battery recycling businesses.
Reporting principles
Waste volumes include all heat and power plants and production facilities in all operating
countries. Volumes include waste created in own operations and waste generated in the
treatment of customer waste in the recycling and waste and battery businesses. Radioactive
waste volumes exclude co-owned nuclear power plants.
Conventional hazardous and non-hazardous waste is mainly based on reports provided by waste
management partners and waste haulers. Low- and intermediate-level radioactive waste is
measured in cubic meters and converted to tonnes. High-level radioactive waste equals the
weight of nuclear fuel used at the nuclear power plant and is reported for the period between
annual maintenance breaks when the reactors are refuelled, usually between July and October.
2.7 EU Taxonomy
2.7.1 Introduction to EU Taxonomy
The EU Taxonomy Regulation is a classification system for defining economic activities that can
be considered as environmentally sustainable. The Regulation provides specific key
performance indicators (KPIs) that entities are required to report for their environmentally
sustainable economic activities. The EU Taxonomy Regulation establishes six environmental
objectives, two of which, the climate change mitigation (CCM) and climate change adaptation
(CCA) criteria, were published on 4 June 2021 in the Climate Delegated Act. Inclusion of the
Complementary Climate Delegated Act on nuclear and natural gas energy activities was
approved on 5 July 2022, and the Environmental Delegated Act for the remaining four objectives
in June 2023. These objectives include Water and Marine Resources (WTR), Circular Economy
(CE), Pollution Prevention and Control (PPC), and Biodiversity and Ecosystems (BIO). As required
by the Environmental Delegated Act, the eligibility of economic activities was assessed in 2023
and alignment in 2024.
Fortum’s disclosures are prepared in accordance with the EU Taxonomy Regulation and
implementing delegated acts. For the financial year ending 31 December 2024, Fortum reports
the proportion of Taxonomy-aligned activities, Taxonomy-eligible (not aligned) activities and
Taxonomy-non-eligible activities in relation to the three KPIs (Turnover, Operating expenses and
Capital expenditure) and the plan (Capital expenditure plan) that aims either to expand Fortum’s
Taxonomy-aligned economic activities or to upgrade Taxonomy-eligible economic activities to
render them Taxonomy-aligned within a period of five years. The reporting scope includes
continuing operations from Fortum’s subsidiaries consolidated to the Group as of
31 December 2024.
2.7.2 Analysis of economic activities
Analysis of eligible economic activities
Fortum classifies its economic activities to aligned, eligible (not aligned) and non-eligible
corresponding to economic activities described in the Climate Delegated Act, Complementary
Climate Delegated Act and Environmental Delegated Act. Eligibility of Fortum’s business
operations was evaluated according to the descriptions of economic activities listed in the
Climate Delegated Act (Annex I – CCM and Annex II – CCA), the Environmental Delegated Act
(Annex I – WTR, Annex II – CE, Annex III – PPC, Annex IV – BIO) and the related NACE codes
(Nomenclature of Economic Activities, European statistical classification of economic activities)
provided in these descriptions. The evaluation was performed either at the power plant or
business unit level, reflecting the nature of the operations.
Analysis of aligned economic activities
An eligible activity is considered to be aligned if it complies with the technical screening criteria
of contributing substantially to at least one of the six environmental objectives, if it does not
significantly harm the other environmental objectives (do no significant harm, DNSH, criteria),
and if it is carried out in compliance with the minimum safeguards (MS) relating to human rights,
fundamental labour rights, taxation, anti-corruption, bribery and fair competition. Fortum
recognised economic activities under CCM, CE and PPC. The alignment of Fortum’s most
material eligible economic activities is based on interpretations and assumptions as described
below.
Application method for substantial contribution criteria, DNSH criteria and
minimum safeguards
Sustainability management at Fortum is strategy-driven and based on Fortum’s Values, Code of
Conduct, Supplier Code of Conduct, Sustainability Policy, other sustainability-related Group
policies, as well as their specifying instructions. When analysing substantial contribution and
DNSH criteria, Fortum relies specifically on its Sustainability Policy, Minimum Requirements for
EHS Management, Biodiversity Manual and Group Risk Policy. Fortum is committed to a high
level of environmental and safety management, complies with all regulations, and has license to
operate each site. All Fortum’s production sites are ISO 14001 certified. Fortum’s sustainability
management and policies for environmental matters are described in 1.5.4 Statement on
sustainability due diligence and 2.1.2 Policies on environmental matters.
In order to assess the alignment of its activities, Fortum’s relevant business units verified their
economic activities’ compliance with the substantial contribution and DNSH criteria listed under
the respective Act. Substantial contribution criteria are specific to each economic activity, and
76
compliance was assessed on a system, facility or installation level, as appropriate. DNSH criteria
can be generic or economic activity-specific. Compliance with each DNSH criteria was assessed
on the most material level reflecting the nature of the economic activity.
Fortum has its own and as co-owned nuclear power plants in Finland and Sweden. Operations at
these plants relate to EU Taxonomy economic activities ‘Construction and safe operation of new
nuclear power plants’ (CCM 4.27) and ‘Electricity generation from nuclear energy in existing
installations’ (CCM 4.28). The most important task of nuclear power operations is to produce
electricity safely, reliably, and competitively, in the short- and long-term, while complying with
the principles of nuclear and radiation safety, waste management safety, and nuclear material
control. Compliance with all of these requirements is overseen by national authorities in Finland
and Sweden. Fortum complies with nuclear-related national regulation, which is considered to
be the basis for the EU Taxonomy alignment criteria. Fortum’s own and co-owned existing
nuclear power plants have done, or are planning to start, modification of existing nuclear
installations for the purposes of lifetime extension. Lifetime extension projects are always
subject to national authorities’ approval and comprehensive environmental and safety
assessments.
DNSH Climate change mitigation
The management of climate change is integrated into Fortum’s strategy. Fortum has set Scope
1, 2 and 3 emission reduction targets, and performance against the targets are reported in
section 2.2.5 Targets for climate change.
DNSH Climate change adaptation
The management of climate-related risks is integrated into Fortum’s Group risk management
framework and follows the same governance and processes as other material risks and
uncertainties. Risks are identified and assessed annually through an enterprise risk management
framework. Taxonomy-relevant entities are required to take into account physical climate risks.
Entities must also understand their assets’ resilience towards different acute and chronic
physical climate-related risks within different Intergovernmental Panel on Climate Change
(IPCC) climate scenarios and create adaptation plans for the most material risks. Fortum’s
material climate-related risks are described in section 2.2.2 Material impacts, risks and
opportunities for climate change.
DNSH Sustainable use and protection of water and marine resources
Fortum manages and uses major water resources in most of its operating countries and is
committed to responsible water management. Fortum’s responsibility for water use is related
not only to volume and availability, but also to water quality and to the aquatic habitat.
Consequently, all production sites under Fortum’s operational control are included in the annual
reporting scope for water use metrics and water stress assessment in section 2.4.6 Metrics for
water. Water management guarantees that the operational sites comply with national
regulations and have a licence to operate. Fortum also carries out water-related measures
locally, where relevant, in order to take into consideration the needs of other water users.
Collaboration with local communities, municipalities, authorities, and research institutes is
important in the implementation of these measures. Fortum’s electricity generation from
hydropower in Finland and Sweden is under the control of the water authorities in the frame of
the Water Framework Directive (WFD). National transposition and timeline of the WFD is
considered in this DNSH review. For the treatment of hazardous waste, relevant techniques are
deployed for the protection of water and marine resources.
DNSH Transition to a circular economy
Fortum takes into account the life cycle and resource efficiency of its products and projects.
Durability and recyclability of equipment and components are included in procurement
processes. Fortum aims for utilisation and recovery of its own by-products and waste.
Minimising the amount of waste and efficient management of end-of-life equipment and
components is expected from Fortum’s operating sites.
In addition to conventional industrial waste, Fortum’s fully owned and co-owned nuclear power
plants in Finland and Sweden generate radioactive waste. All plants take full financial and safe
execution responsibility over radioactive waste originated from the operations and
decommissioning, as well as optimise and develop treatment processes to minimise the amount
of waste stored. All low-, intermediate- and high-level radioactive waste is treated and stored on
site or in a special storage site located in the country where the waste is generated. Fortum’s
approach to circular economy and nuclear waste management is reported in more detail in
section 2.6 Resource use and circular economy.
DNSH Pollution prevention and control
Fortum’s chemical management ensures compliance with local regulations, existing permits and
that operations do not cause any significant harm with substances used, covering the
substances listed in Appendix C (Annex I – CCM and Annex II – CE). Fulfilling the requirements
set by Fortum and the legislation in the respective country, proper management of chemicals in
the whole chain-from purchasing to disposal, minimising risks related to the handling of
chemicals, and limiting and continuously reducing the use of hazardous chemicals, and, where
possible, substituting with chemicals less harmful to health and the environment- is ensured.
See section 2.3 Pollution.
Fortum continuously aims to mitigate its environmental impact by utilising best practices and
best available technologies. Minimum Requirements for EHS Management ensure compliance
with permit conditions, regular monitoring and reporting of emissions to air, water and soil, and
risk mitigation to prevent any cross-media effects. The relevant techniques for pollution
prevention and control are in place at all relevant sites and meet the relevant associated
emission limits.
77
The nuclear power operations’ radioactive discharges to air, water and soil comply with
individual licence conditions. Discharges and environmental impacts are strictly monitored by
Finnish and Swedish authorities who have the national oversight of nuclear power plants. Spent
fuel and radioactive waste is safely and responsibly managed, including ensuring adequate
storage capacity.
DNSH Protection and restoration of biodiversity and ecosystems
Fortum’s biodiversity management is an integral part of the environmental management system
covering all operations. Biodiversity management, defined in the Biodiversity Manual, ensures
compliance with biodiversity-related requirements set by local regulations and that necessary
steps are taken whenever feasible to avoid, mitigate, or address potential impacts. The
Biodiversity Manual requires that special consideration is given for sites that are close to
protected areas or threatened habitats or where any known population of a threatened or
protected species might be affected. Fortum’s approach to biodiversity is reported in more
detail in section 2.5 Biodiversity and ecosystems.
Minimum Safeguards
Fortum follows and respects internationally recognised human rights, which are included in the
key human rights treaties. Respect for human rights is expressed in Fortum’s Code of Conduct
and Supplier Code of Conduct. The UN Guiding Principles on Business and Human Rights are
taken into account in own operations and in supply chain management. Fortum’s approach to
human rights due diligence is based on the UN Guiding Principles on Business and Human
Rights and follows the six steps outlined in the OECD Guidelines for Multinational Enterprises.
Zero tolerance for corruption and bribery is highlighted in Fortum’s Code of Conduct and
Supplier Code of Conduct. In addition, separate instructions and guidelines have been created to
address various topics, including but not limited to anti-bribery, compliance management,
safeguarding company assets, conflict of interest, anti-money laundering, economic sanctions
and competition law. See section 4 Business conduct.
Fortum has implemented due diligence processes for environment, taxation, anti-corruption and
bribery, as well as fair competition. Requirements for human rights, labour rights, environment,
anti-corruption and fair competition are included in Fortum’s procurement processes. Group-
level commitments, policies, instructions and guidelines apply to all of Fortum’s activities in all
operating countries. For more information on sustainability due diligence, see 1.5.4 Statement on
sustainability due diligence. Fortum (or senior management) has not been found to have violated
labour law, human rights, or competition laws. Fortum has also not been found guilty of tax
evasion, corruption or bribery.
2.7.3 EU Taxonomy KPIs
The following tables present the proportions of aligned, eligible (not aligned) and non-eligible
activities of turnover, operating expenses, and capital expenditure under the EU Taxonomy
Regulation for the Fortum Group.
Turnover KPI
EUR million
2024
2023
A.1 Environmentally sustainable activities (Taxonomy-aligned)
2,869
49%
2,915
43%
A.2 Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned)
42
1%
457
7%
A. Total Taxonomy-eligible activities
2,911
50%
3,372
50%
B. Taxonomy-non-eligible activities
2,889
50%
3,339
50%
Total (A+B)
5,800
100%
6,711
100%
Operating expenses KPI
EUR million
2024
2023
A.1 Environmentally sustainable activities (Taxonomy-aligned)
-181
75%
-124
56%
A.2 Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned)
-10
4%
-47
21%
A. Total Taxonomy-eligible activities
-191
79%
-171
77%
B. Taxonomy-non-eligible activities
-51
21%
-51
23%
Total (A+B)
-242
100%
-222
100%
Capital expenditure KPI
EUR million
2024
2023
A.1 Environmentally sustainable activities (Taxonomy-aligned)
386
74%
424
64%
A.2 Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned)
11
2%
82
12%
A. Total Taxonomy-eligible activities
397
76%
506
76%
B. Taxonomy-non-eligible activities
128
24%
160
24%
Total (A+B)
525
100%
667
100%
78
Changes in reporting from 2023
Fortum concluded the sale of its recycling and waste business on 29 November 2024. The EU
Taxonomy KPIs in 2024 include the recycling and waste business from 1 January 2024 to 29
November 2024. The most significant economic activities for recycling and waste are
‘Treatment of hazardous waste’ (PPC 2.2) and ‘Sorting and material recovery of non-hazardous
waste’ (CE 2.7).
As required by the Environmental Delegated Act, the alignment of Circular Economy (CE) and
Pollution Prevention and Control (PPC) related economic activities was assessed in 2024.
Consequently, in 2024 Fortum has reclassified the following eligible activities to aligned
activities in the EU Taxonomy KPI tables: ‘Treatment of hazardous waste’ (PPC 2.2), ‘Sorting and
material recovery of non-hazardous waste’ (CE 2.7), ‘Demolition and wrecking of buildings and
other structures’ (CE 3.3), ‘Remediation of contaminated sites and areas’ (PPC 2.4), ‘Provision of
IT/OT data-driven solutions’ (CE 4.1), and ‘Depollution and dismantling of end-of-life
products’ (CE 2.6).
Aligned economic activities (A.1)
In terms of turnover, 49% (2023: 43%), in terms of operating expenses, 75% (2023: 56%), and in
terms of capital expenditure, 74% (2023: 64%), of Fortum’s economic activities are Taxonomy-
aligned (A.1).
The most significant aligned activities are electricity generation from hydropower with an
installed capacity of 4.7 GW (50% of total capacity) (2023: 4.7 GW, 50% of total capacity) and
electricity generation from nuclear energy with an installed capacity of 3.2 GW (35% of total
capacity) (2023: 3.2 GW, 35% of total capacity). As explained above, treatment of hazardous
waste and sorting and material recovery of non-hazardous waste are reclassified in 2024 from
eligible (not aligned) to aligned economic activities, which increased the aligned economic
activities.
Eligible (not aligned) economic activities (A.2)
In terms of turnover, 1% (2023: 7%), in terms of operating expenses, 4% (2023: 21%), and in terms
of capital expenditure, 2% (2023: 12%), of Fortum’s economic activities are Taxonomy-eligible
(not aligned) (A.2). As explained above, treatment of hazardous waste and sorting and material
recovery of non-hazardous waste are reclassified in 2024 from eligible (not aligned) to aligned
economic activities, which decreased eligible (not aligned) economic activities.
Non-eligible economic activities (B)
A non-eligible economic activity does not correspond to any economic activity description
provided in the EU Taxonomy Regulation. Fortum’s non-eligible activities include electricity retail
(Consumer Solutions segment), electricity and commodities trading, coal-based power and heat
generation, engineering services related to non-renewable assets, as well as administrative
overheads.
Fortum’s Green Financing linked to EU Taxonomy alignment
In 2024, Fortum established a Green Finance Framework, which allows Fortum to raise capital
via green bonds and loans to finance and refinance taxonomy-aligned renewable energy and
energy-efficiency projects, and/or nuclear power projects. As required by the EU Taxonomy
Regulation, an adjusted turnover KPI is disclosed in 2024. The turnover KPI adjusted for sales
from Taxonomy-aligned assets that have been refinanced under Fortum’s Green Finance
Framework is 49%. No adjustment has been made to the capital expenditure KPI, as refinancing
is allocated to an existing asset base as opposed to new capital expenditure.
79
Turnover KPI
2024
Substantial contribution criteria
DNSH criteria (“Does Not Significantly Harm”)
Minimum safeguards
Proportion of
Taxonomy- aligned
(A.1.) or -eligible
(A.2.) turnover 2023
Category enabling
activity
Category transitional
activity
Economic activities
Code
Turnover EUR
million
Proportion of
Turnover 2024
Climate change
mitigation
Climate change
adaptation
Water
Pollution
Circular
economy
Biodiversity
Climate change
mitigation
Climate change
adaptation
Water
Pollution
Circular
economy
Biodiversity
A. Taxonomy-eligible activities
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of batteries 1)
CCM3.4
6
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
E
Electricity generation from wind power
CCM4.3
58
1%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
Electricity generation from hydropower
CCM4.5
1,170
20%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
20%
District heating/cooling distribution
CCM4.15
124
2%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
2%
Production of heat/cool using waste heat
CCM4.25
25
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
1%
Construction and safe operation of new nuclear power plants
CCM4.27
124
2%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
2%
T
Electricity generation from nuclear energy in existing installations
CCM4.28
980
17%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
18%
T
Treatment of hazardous waste 1)
PPC2.2
211
4%
N/EL
N/EL
N/EL
Y
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
Sorting and material recovery of non-hazardous waste 1)
CE2.7
115
2%
N/EL
N/EL
N/EL
N/EL
Y
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
Other 2)
56
1%
Y
Y
Y
Y
Y
Y
Y
0%
A.1 Total
2,869
49%
43%
0%
0%
4%
2%
0%
43%
Of which enabling
6
0%
0%
Y
Y
Y
Y
Y
Y
Y
0%
E
Of which transitional
1,105
19%
19%
Y
Y
Y
Y
Y
Y
Y
21%
T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-
aligned)
Electricity generation from hydropower
CCM4.5
7
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
1%
High-efficiency co-generation of heat/cool and power from fossil gaseous fuels
CCM4.30
12
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
T
Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling
system
CCM4.31
9
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
T
Other 3)
14
0%
5%
A.2 Total
42
1%
1%
0%
0%
0%
0%
0%
7%
A. Total Taxonomy-eligible activities
2,911
50%
44%
0%
0%
4%
2%
0%
50%
B. Taxonomy-non-eligible activities
2,889
50%
Total (A+B)
5,800
100%
Y – Taxonomy-eligible and Taxonomy-aligned activity with the relevant objective, EL – Taxonomy-eligible activity for the
relevant objective, N/EL – Taxonomy-non-eligible activity for the relevant objective
1)Comparatives are presented in Other in Taxonomy-eligible activities 2023.
2)Includes economic activities CCM4.11, CCM4.20, CCM4.24, PPC2.4, CE 2.6, CE3.3.
3)Includes economic activities CCM3.10, CCM4.1, CCM4.20, CCM4.25, CCM4.3, CCM5.10, PPC2.2, CE4.1.
The proportion of turnover for activities contributing substantially to several objectives is
presented in the following table:
Proportion of turnover / Total turnover
Taxonomy-aligned per objective
Taxonomy-eligible per objective
CCM
1%
0%
CCA
WTR
CE
PPC
BIO
80
Operating expenses KPI
2024
Substantial contribution criteria
DNSH criteria (“Does Not Significantly Harm”)
Minimum safeguards
Proportion of
Taxonomy- aligned
(A.1.) or -eligible (A.2.)
OpEx 2023
Category enabling
activity
Category transitional
activity
Economic activities
Code
OpEx EUR million
Proportion of
OpEx 2024
Climate change
mitigation
Climate change
adaptation
Water
Pollution
Circular economy
Biodiversity
Climate change
mitigation
Climate change
adaptation
Water
Pollution
Circular economy
Biodiversity
A. Taxonomy-eligible activities
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of batteries 1)
CCM3.4
-2
1%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
E
Electricity generation from wind power
CCM4.3
-5
2%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
Electricity generation from hydropower
CCM4.5
-69
29%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
30%
District heating/cooling distribution
CCM4.15
-18
7%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
8%
Production of heat/cool using waste heat
CCM4.25
-3
1%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
Construction and safe operation of new nuclear power plants
CCM4.27
0
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
T
Electricity generation from nuclear energy in existing installations
CCM4.28
-45
19%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
17%
T
Treatment of hazardous waste 1)
PPC2.2
-29
12%
N/EL
N/EL
N/EL
Y
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
Sorting and material recovery of non-hazardous waste 1)
CE2.7
-6
2%
N/EL
N/EL
N/EL
N/EL
Y
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
Other 2)
-4
2%
Y
Y
Y
Y
Y
Y
Y
1%
A.1 Total
-181
75%
60%
0%
0%
12%
2%
0%
56%
Of which enabling
-2
1%
1%
Y
Y
Y
Y
Y
Y
Y
0%
E
Of which transitional
-45
19%
19%
Y
Y
Y
Y
Y
Y
Y
17%
T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-
aligned)
Electricity generation from hydropower
CCM4.5
0
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
High-efficiency co-generation of heat/cool and power from fossil gaseous fuels
CCM4.30
-1
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
T
Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling
system
CCM4.31
-1
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
T
Other 3)
-8
3%
21%
A.2 Total
-10
4%
1%
0%
0%
0%
0%
0%
21%
A. Total Taxonomy-eligible activities
-191
79%
61%
0%
0%
12%
2%
0%
77%
B. Taxonomy-non-eligible activities
-51
21%
Total (A+B)
-242
100%
Y – Taxonomy-eligible and Taxonomy-aligned activity with the relevant objective, EL – Taxonomy-eligible activity for the
relevant objective, N/EL – Taxonomy-non-eligible activity for the relevant objective
1)Comparatives are presented in Other in Taxonomy-eligible activities 2023.
2)Includes economic activities CCM4.11, CCM4.20, CCM4.24, PPC2.4, CE 2.6, CE3.3.
3)Includes economic activities CCM3.10, CCM4.1, CCM4.20, CCM4.25, CCM4.3, CCM5.10, PPC2.2, CE4.1.
The proportion of operating expenses for activities contributing substantially to several
objectives is presented in the following table:
Proportion of OpEx / Total OpEx
Taxonomy-aligned per objective
Taxonomy-eligible per objective
CCM
1%
1%
CCA
WTR
CE
PPC
BIO
81
Capital expenditure KPI
2024
Substantial contribution criteria
DNSH criteria (“Does Not Significantly Harm”)
Minimum safeguards
Proportion of
Taxonomy- aligned
(A.1.) or eligible (A.2.)
CapEx 2023
Category enabling
activity
Category transitional
activity
Economic activities
Code
CapEx EUR million
Proportion of
CapEx 2024
Climate change
mitigation
Climate change
adaptation
Water
Pollution
Circular economy
Biodiversity
Climate change
mitigation
Climate change
adaptation
Water
Pollution
Circular economy
Biodiversity
A. Taxonomy-eligible activities
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of batteries 1)
CCM3.4
5
1%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
E
Electricity generation from wind power
CCM4.3
30
6%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
34%
Electricity generation from hydropower
CCM4.5
129
25%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
16%
District heating/cooling distribution
CCM4.15
39
7%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
6%
Production of heat/cool using waste heat
CCM4.25
72
14%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
5%
Construction and safe operation of new nuclear power plants
CCM4.27
—
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
T
Electricity generation from nuclear energy in existing installations
CCM4.28
54
10%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
3%
T
Treatment of hazardous waste 1)
PPC2.2
34
7%
N/EL
N/EL
N/EL
Y
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
Sorting and material recovery of non-hazardous waste 1)
CE2.7
12
2%
N/EL
N/EL
N/EL
N/EL
Y
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
Other 2)
12
2%
Y
Y
Y
Y
Y
Y
Y
0%
A.1 Total
386
74%
65%
0%
0%
7%
2%
0%
64%
Of which enabling
5
1%
1%
Y
Y
Y
Y
Y
Y
Y
0%
E
Of which transitional
54
10%
10%
Y
Y
Y
Y
Y
Y
Y
3%
T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-
aligned)
Electricity generation from hydropower
CCM4.5
3
1%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
High-efficiency co-generation of heat/cool and power from fossil gaseous fuels
CCM4.30
2
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
T
Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling
system
CCM4.31
—
0%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0%
T
Other 3)
6
1%
12%
A.2 Total
11
2%
2%
0%
0%
0%
0%
0%
12%
A. Total Taxonomy-eligible activities
397
76%
67%
0%
0%
7%
2%
0%
76%
B. Taxonomy-non-eligible activities
128
24%
Total (A+B)
525
100%
Y – Taxonomy-eligible and Taxonomy-aligned activity with the relevant objective, EL – Taxonomy-eligible activity for the
relevant objective, N/EL – Taxonomy-non-eligible activity for the relevant objective
1)Comparatives are presented in Other in Taxonomy-eligible activities 2023.
2)Includes economic activities CCM4.11, CCM4.20, CCM4.24, PPC2.4, CE 2.6, CE3.3.
3)Includes economic activities CCM3.10, CCM4.1, CCM4.20, CCM4.25, CCM4.3, CCM5.10, PPC2.2, CE4.1.
The proportion of capital expenditure for activities contributing substantially to several
objectives is presented in the following table:
Proportion of CapEx / Total CapEx
Taxonomy-aligned per objective
Taxonomy-eligible per objective
CCM
1%
0%
CCA
WTR
CE
PPC
BIO
82
2.7.4 Transitional activities (Nuclear and Natural gas)
A transitional activity is an activity that supports the transition to a climate-neutral economy
where there is no technologically and economically feasible low-carbon alternative. Fortum’s
transitional activities are mainly concentrating on electricity generation from new and existing
nuclear installations. Fortum does not have non-eligible economic activities related to nuclear or
natural gas, hence Template 5 Taxonomy non-eligible economic activities (Complementary
Climate Delegated Act, Annex III) is not presented below.
Nuclear-and fossil gas-related activities
Nuclear energy-related activities
The undertaking carries out, funds or has exposures to research, development, demonstration and
deployment of innovative electricity generation facilities that produce energy from nuclear processes with
minimal waste from the fuel cycle.
No
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear
installations to produce electricity or process heat, including for the purposes of district heating or
industrial processes such as hydrogen production, as well as their safety upgrades, using best available
technologies.
Yes
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that
produce electricity or process heat, including for the purposes of district heating or industrial processes
such as hydrogen production from nuclear energy, as well as their safety upgrades.
Yes
Fossil gas-related activities
The undertaking carries out, funds or has exposures to construction or operation of electricity generation
facilities that produce electricity using fossil gaseous fuels.
No
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of
combined heat/cool and power generation facilities using fossil gaseous fuels.
Yes
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat
generation facilities that produce heat/cool using fossil gaseous fuels.
Yes
83
Aligned economic activities (A.1)
Turnover KPI
Taxonomy-aligned economic activities (denominator)
Amount and proportion 2024
Amount and proportion 2023
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Economic activities
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the turnover KPI
124
2%
124
2%
—
—
143
2%
143
2%
—
—
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the turnover KPI
980
17%
980
17%
—
—
1,240
18%
1,240
18%
—
—
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows above
in the denominator of the turnover KPI
1,765
30%
1,765
30%
—
—
1,532
23%
1,532
23%
—
—
Total
2,869
49%
2,869
49%
—
—
2,915
43%
2,915
43%
—
—
Taxonomy-aligned economic activities (numerator)
Amount and proportion 2024
Amount and proportion 2023
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Economic activities
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the turnover KPI
124
4%
124
4%
—
—
143
5%
143
5%
—
—
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the turnover KPI
980
34%
980
34%
—
—
1,240
43%
1,240
43%
—
—
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows above
in the numerator of the turnover KPI
1,765
62%
1,765
62%
—
—
1,532
53%
1,532
53%
—
—
Total
2,869
100%
2,869
100%
—
—
2,915
100%
2,915
100%
—
—
Operating expenses KPI
Taxonomy-aligned economic activities (denominator)
Amount and proportion 2024
Amount and proportion 2023
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Economic activities
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the operating expenses
KPI
—
—%
—
—%
—
—
—
—%
—
—%
—
—
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the operating expenses
KPI
-45
19%
-45
19%
—
—
-38
17%
-38
17%
—
—
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows above
in the denominator of the operating expenses KPI
-136
56%
-136
56%
—
—
-86
39%
-86
39%
—
—
Total
-181
75%
-181
75%
—
—
-124
56%
-124
56%
—
—
84
Taxonomy-aligned economic activities (numerator)
Amount and proportion 2024
Amount and proportion 2023
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Economic activities
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the operating expenses KPI
—
—%
—
—%
—
—
—
—%
—
—%
—
—
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the operating expenses KPI
-45
25%
-45
25%
—
—
-38
30%
-38
30%
—
—
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows above
in the numerator of the operating expenses KPI
-136
75%
-136
75%
—
—
-86
70%
-86
70%
—
—
Total
-181
100%
-181
100%
—
—
-124
100%
-124
100%
—
—
Capital expenditure KPI
Taxonomy-aligned economic activities (denominator)
Amount and proportion 2024
Amount and proportion 2023
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Economic activities
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the capital expenditure
KPI
—
—%
—
—%
—
—
—
—%
—
—%
—
—
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the capital expenditure
KPI
54
10%
54
10%
—
—
22
3%
22
3%
—
—
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows above
in the denominator of the capital expenditure KPI
333
63%
333
63%
—
—
402
60%
402
60%
—
—
Total
386
74%
386
74%
—
—
424
64%
424
64%
—
—
Taxonomy-aligned economic activities (numerator)
Amount and proportion 2024
Amount and proportion 2023
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Economic activities
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the capital expenditure KPI
—
—%
—
—%
—
—
—
—%
—
—%
—
—
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the capital expenditure KPI
54
14%
54
14%
—
—
22
5%
22
5%
—
—
Amount and proportion of other taxonomy-aligned economic activities not referred to in rows above
in the numerator of the capital expenditure KPI
333
86%
333
86%
—
—
402
95%
402
95%
—
—
Total
386
100%
386
100%
—
—
424
100%
424
100%
—
—
85
Eligible economic activities (A.2)
Turnover KPI
Taxonomy-eligible but not taxonomy-aligned economic activities
Amount and proportion 2024
Amount and proportion 2023
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Economic activities
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to
in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the
turnover KPI
12
—%
12
—%
—
—
13
—%
13
—%
—
—
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to
in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the
turnover KPI
9
—%
9
—%
—
—
12
—%
12
—%
—
—
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not
referred to in rows above in the denominator of the turnover KPI
21
—%
21
—%
—
—
432
6%
432
6%
—
—
Total
42
1%
42
1%
—
—
457
7%
457
7%
—
—
Operating expenses KPI
Taxonomy-eligible but not taxonomy-aligned economic activities
Amount and proportion 2024
Amount and proportion 2023
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Economic activities
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to
in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the
operating expenses KPI
-1
—%
-1
—%
—
—
—
—%
—
—%
—
—
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to
in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the
operating expenses KPI
-1
—%
-1
—%
—
—
—
—%
—
—%
—
—
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not
referred to in rows above in the denominator of the operating expenses KPI
-8
3%
-8
3%
—
—
-46
21%
-46
21%
—
—
Total
-10
4%
-10
4%
—
—
-47
21%
-47
21%
—
—
Capital expenditure KPI
Taxonomy-eligible but not taxonomy-aligned economic activities
Amount and proportion 2024
Amount and proportion 2023
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Economic activities
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
EUR
million
%
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to
in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the
capital expenditure KPI
2
—%
2
—%
—
—
—
—%
—
—%
—
—
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to
in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the
capital expenditure KPI
—
—%
—
—%
—
—
—
—%
—
—%
—
—
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not
referred to in rows above in the denominator of the capital expenditure KPI
9
2%
9
2%
—
—
82
12%
82
12%
—
—
Total
11
2%
11
2%
—
—
82
12%
82
12%
—
—
86
2.7.5 Capital expenditure plan
Capital expenditure plan refers to significant future capital investments approved by
management that aim either to expand Fortum’s Taxonomy-aligned economic activities or to
upgrade Taxonomy-eligible economic activities to render them Taxonomy-aligned within a
period of five years.
Total planned capital expenditure meeting the above definition amounted to EUR 1.1 billion on 31
December 2024 and is expected to be incurred over the next five years, with the exception of
the Loviisa lifetime extension for which ten-year capital expenditure is included in the reported
capital expenditure plan due to the long-term nature of the investment. Planned capital
expenditure on 31 December 2024 mainly include the Loviisa nuclear power plant lifetime
extension; the Espoo Clean Heat project, a programme to drive decarbonisation and build
sustainable waste heat solutions in the Helsinki metropolitan area; the Czestochowa CHP plant
decarbonisation project in Poland; and projects increasing production at existing hydro plants.
The majority of the projects included in the capital expenditure plan will be completed during the
next four years, but the Loviisa lifetime extension project will continue until 2050. The increase
in planned capital expenditure from 2023 is mainly due to the approval of the Czestochowa CHP
plant decarbonisation project in Poland in 2024 and the increase in capital expenditure
estimates for the Loviisa lifetime extension, partly offset by the decrease in investments in the
Pjelax wind project, as planned costs have been realised. The Pjelax project was completed
in 2024.
Operating expenses related to the 2024 capital expenditure plan projects are not material
(2023: not material).
2.7.6 Definitions, reconciliations and basis of calculation
Turnover
The term ‘turnover’ used in these EU Taxonomy disclosures refers to sales, the term Fortum uses
elsewhere in the annual report. Turnover is based on the sales reported on Fortum’s
consolidated income statement (Note 6 Segment reporting). Turnover excludes discontinued
operations. Breakdown of turnover: 
2024
2023
EUR million
A.1
Taxonomy-
aligned
Total
A.1
Taxonomy-
aligned
Total
Power
2,326
4,368
2,729
5,193
Heat
196
527
173
512
Other
347
905
13
1,006
Total 
2,869
5,800
2,915
6,711
The decrease in Taxonomy-aligned turnover from 2023 is mainly due to a decrease in the
achieved power price for hydro and nuclear power production. The optimisation premium was
slightly above the guidance of 6-8 EUR/MWh, at 8.7 EUR/MWh. The spot power price in
Fortum’s generation price areas declined to 38.4 EUR/MWh compared to 51.3 EUR/MWh in
2023.
The electricity generation from the nuclear and hydropower turnover KPIs includes sales from
co-owned assets that are operated under the Mankala model. In the Mankala model, the co-
owned power company sells the produced electricity to its shareholders at cost in proportion to
their ownership.
Operating expenses 
Operating expenses consist of direct non-capitalised costs that are necessary to ensure the
continued and effective functioning of property, plant and equipment. These expenses include
repairs and maintenance, building servicing, short-term rentals and similar costs, as well as
other direct expenditures relating to the day-to-day servicing of these assets. Operating
expenses exclude discontinued operations. Breakdown of operating expenses:
2024
2023
EUR million
A.1
Taxonomy-
aligned
Total
A.1
Taxonomy-
aligned
Total
Repairs and maintenance 
-106
-145
-66
-127
Short-term rentals and other property costs
-48
-62
-40
-61
Other 
-27
-36
-17
-34
Total
-181
-242
-124
-222
The increase in Taxonomy-aligned operating expenses from 2023 is mainly due to the
reclassification of treatment of hazardous waste and sorting and material recovery of non-
hazardous waste in 2024 from eligible (not aligned) to aligned economic activities.
87
Capital expenditure 
Capital expenditure consists of additions to property, plant and equipment, intangible assets,
right-of-use assets as well as additions through business combinations. Breakdown of capital
expenditure:
2024
2023
EUR million
Note
A.1
Taxonomy-
aligned
Total
A.1
Taxonomy-
aligned
Total
Additions to intangible assets 
16
1
81
4
92
Additions to property, plant and
equipment 
17
372
404
417
523
Additions to right-of-use assets 
33
13
40
3
27
Additions through business combinations
3
—
—
—
25
Total
386
525
424
667
The decrease in Taxonomy-aligned capital expenditure from 2023 is mainly due to the decrease
in capital expenditure in wind generation following the completion of the Pjelax wind farm
in 2024.
Basis of calculation
The financial data used for calculating the EU Taxonomy KPIs has been retrieved from Fortum’s
financial systems and is based on the same data and Group accounting principles as Fortum’s
consolidated financial statements for the year ending 31 December 2024 (see notes to the
consolidated financial statements for details). Appropriate controls have been implemented to
eliminate the risk of double counting. Financial data has been allocated to aligned and eligible
economic activities as follows: 
• The majority of electricity sales has been allocated to aligned and eligible activities based on
production volume. The electricity generation from nuclear and hydropower turnover KPIs
include sales from co-owned assets that are operated under the Mankala model. In the
Mankala model, the co-owned power company sells the produced electricity to its
shareholders at cost in proportion to their ownership.
• Other sales and operating expenses data are available in the source systems at the cost
centre-level corresponding to individual sites. These cost centres have been allocated to
aligned and eligible economic activities.
• Each significant capital expenditure project has been allocated to aligned and eligible
economic activities.
88
3 Social sustainability
3.1 Introduction
3.1.1 Introduction to social sustainability
Social sustainability at Fortum focuses particularly on own employees, workers in the value
chain, and communities around Fortum’s sites. The health and safety of employees and value
chain workers working at Fortum’s sites is a top priority. Fortum also systematically develops its
human rights due diligence process to better address potential negative impacts, as well as
collaborates with communities and organisations at global, national and local levels through the
Corporate Social Responsibility (CSR) programme.
3.1.2 Policies on social matters and respect for human rights
The key policies to address the management of social impacts, risks and opportunities related to
own workforce, workers in the value chain and affected communities are the Code of Conduct,
the Supplier Code of Conduct and the Sustainability Policy. These policies are approved by the
Board of Directors and are accompanied by instructions and guidelines to guide implementation.
The policies apply to all employees, businesses and corporate functions in all operating
countries, and to all external persons working for Fortum. The Supplier Code of Conduct applies
to workers in Fortum’s supply chains. The above-mentioned policies are available on Fortum’s
website.
The Sustainability Policy takes into account the views of affected stakeholders received through
regular stakeholder engagement. These stakeholders include customers, personnel, suppliers,
local communities and non-governmental organisations (NGOs). See section 1.3.2 Interests and
views of stakeholders.
The Code of Conduct, the Supplier Code of Conduct and the Sustainability Policy express
Fortum’s commitment to respect human rights and to act with due diligence to comply with the
International Bill of Human Rights, the United Nations Convention on the Rights of the Child, and
the fundamental conventions of the International Labour Organisation (ILO). These include
international conventions addressing freedom of association, collective bargaining,
discrimination and harassment, working time, wages and salaries, health and safety, as well as
laws prohibiting forced, compulsory and child labour. Fortum’s policies do not explicitly address
human trafficking. Fortum has health and safety management systems in place applicable to
own employees, non-employee workforces and external contractors’ workforces working at
Fortum’s sites.
Fortum’s human rights due diligence approach is aligned with the UN Guiding Principles on
Business and Human Rights and the OECD Guidelines for Multinational Enterprises on
Responsible Business Conduct. Fortum is committed to acting with due care to identify,
mitigate, remediate and monitor actual or potential human rights impacts on its own workforce
as well as to its business operations, investments and supply chains within its sphere of
influence, taking into account the severity and likelihood of impacts, as well as Fortum’s
leverage and role in the causality of the impacts. To monitor compliance with the above
mentioned instruments, Fortum conducts an annual review that covers changes in the company
or assets, impacts, revised processes, and relevant key performance indicators. Fortum
assesses sustainability performance when selecting suppliers, contractors and business
partners and seeks to collaborate with business partners to mitigate adverse impacts on human
rights.
No severe human rights incidents or cases of non-respect of the UN Guiding Principles on
Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work,
or the OECD Guidelines for Multinational Enterprises related to own employees, value chain
workers or affected communities have been identified in Fortum’s operations nor have there
been any legal disputes related to land rights or free, prior and informed consent of indigenous
peoples.
Fortum’s key policies and instructions on social matters are presented in the table below.
Policies and instructions marked with ’OO’ relate to own operations. Those marked with ’VC’ aim
to address the impacts, risks and opportunities within the value chain, although not all of them
are directly binding on the value chain actors.
Document name
Own
workforce
Workers in
the value
chain
Affected
communities
Key policies, instructions and manuals
Code of Conduct (OO, VC)
•
•
•
Supplier Code of Conduct (VC)
•
Sustainability Policy (OO, VC)
•
•
•
Group Instruction on Fortum Speak-Up procedures  (Speak-Up
Policy, OO, VC)
•
•
•
People Policy (OO)
•
Instructions and Minimum Requirements for EHS Management
(OO, VC)
•
•
Other related policies, instructions and manuals
Group Risk Policy (OO, VC)
•
•
Group Policy for Privacy (OO)
•
Sustainability Governance Model (OO)
•
•
Investment Manual (OO, VC)
•
•
•
Group Manual for Sustainability Assessment (OO, VC)
•
•
•
Human rights due diligence at Fortum (OO, VC)
•
•
•
Group Counterparty Risk Instruction (OO, VC)
•
89
3.2 Own workforce
3.2.1 Introduction to own workforce
Fortum employs energy sector professionals working mainly in its main operating countries of
Finland, Sweden, Norway and Poland. Fortum emphasises an open and trusting corporate
culture and highlights systematic, two-way feedback on employee performance and
engagement. Employee safety is a top priority.
A breakdown and characteristics of Fortum’s employees on 31 December 2024 is presented in
the tables below. Number of employees are presented as headcounts.
Number of employees by gender:
Gender
2024
Female
1,678
Male
2,816
Other
1
Not disclosed
1
Total
4,496
Number of employees by country:
Country
2024
Finland
2,209
Sweden
932
Poland
783
Norway
317
Other
255
Total
4,496
Number of employees by contract type and gender:
Contract type
Total
Female
Male
Other
Not disclosed
Number of employees
4,496
1,678
2,816
1
1
Permanent
4,316
1,569
2,745
1
1
Temporary
150
95
55
—
—
Non-guaranteed hours
30
14
16
—
—
Full-time
4,369
1,614
2,753
1
1
Part-time
127
64
63
—
—
Employee turnover for the year ended 31 December 2024:
2024
Number of employees who left Fortum 1)
428
Average number of employees
5,301
Employee turnover, % 2)
7.3
1) Includes employees who left Fortum due to voluntary resignation, dismissal, retirement or death. Excludes employees who
have left with the divested businesses.
2) Average of monthly turnover (terminations / headcount * 12).
During 2024, Fortum integrated 250 formerly outsourced hydropower maintenance employees
in Finland and Sweden. The sale of the recycling and waste business transferred approximately
900 employees in Finland, Sweden, Denmark, and Norway, and the sale of the turbine and
generation services transferred approximately 170 employees in Finland, Sweden and Germany,
to the new owners of the businesses. Employees of recycling and waste business and turbine
and generation services are included in the average number of employees up to the date of
disposal. 
See Note 6 Segment reporting for number of employees by country and segment. The number of
employees in Note 6 excludes non-guaranteed hours, which are included above.
3.2.2 Material impacts, risks and opportunities for own workforce
Fortum has identified the following material, positive and negative impacts related to its own
workforce. The short- and medium-term potential impacts are related to health and safety,
employment security and wages. For more information on the double materiality assessment
process, see 1.4 Double materiality assessment.
IRO reference
Description
Positive impacts
IRO S1.1
Fortum provides secure employment through permanent, full-time employment and by
fostering attractive career and development opportunities for continued competence
development. This increases employees' security, stability, job continuity, and peace of mind
and fosters commitment to the organisation.
IRO S1.2
All Fortum’s employees receive adequate wages and Fortum is committed to ensuring gender
equal and adequate pay for all employees in all operating countries.
Positive and negative impact
IRO S1.3
Safety is considered a material and strategic issue and Fortum strives for excellence in safety
culture across all operations. Safety incidents can have a negative impact on employee
health and safety. Based on safety incident records, negative impacts on health and safety
are more likely limited to employees working at Fortum’s power plants (blue-collar workers).
90
Safety of own employees and of value chain workers who work at Fortum’s sites (contractors’
employees) (IRO S2.3) is equally important to Fortum. Therefore, own employees’ and
contractors’ safety metrics are described together in this section. The material positive impacts
apply to own employees.
Fortum has not identified material impacts related to non-employees, operations at significant
risk of incidents of forced or child labour in own operations, or impacts on own workforce from
green transition and decarbonisation efforts.
3.2.3 Policies on own workforce
The key policies to address the management of material impacts related to own workforce are
the Code of Conduct, the People Policy and the Sustainability Policy. These policies cover all
workforces. Fortum’s policy commitment to human rights and due diligence and cases of non-
compliance are described above in section 3.1.2 Policies on social matters and respect for
human rights.
The Code of Conduct and the People Policy outline the commitment to zero tolerance for
discrimination, including harassment or unfair treatment on the basis of ethnicity, religion,
political opinion, gender, age, national origin, language, sexual orientation, marital status,
disability, or any other factor.
The People Policy outlines Fortum’s key commitments and values towards employees and thus
addresses the material impacts related to employment security and wages. The People Policy
states Fortum’s commitment to respect employees’ freedom of association and the right to
collective bargaining; fair, transparent and competitive rewarding; fostering diversity; as well as
fair treatment and equal opportunity in recruitment, remuneration, development and career
advancement. It also outlines Fortum’s ambition to create attractive career and development
opportunities where employees feel empowered and engaged.
The Sustainability Policy describes Fortum’s commitments and ambition related to its different
sustainability topics, including the health and safety of employees and contractors, as well as
stakeholder engagement, including employees. The policies are accompanied by instructions,
guidelines and training to guide implementation at all organisational levels, as outlined in section
3.1.2 Policies on social matters and respect for human rights. The processes to monitor the
objectives of the policies is described in section 3.2.5 Taking action and tracking effectiveness of
actions on own workforce.
Fortum does not have other specific policy commitments related to inclusion or positive action
for people from groups at particular risk of vulnerability.
3.2.4 Targets for own workforce
Fortum’s targets related to own workforce and performance against targets are presented in
the table below.
Measure
Target year
Target value
2024
No severe or fatal injuries 1)
Number of
incidents
Annual
0
2
Total Recordable Injury Frequency (TRIF) <1.0 1)
TRIF
2030
<1.0
4.0
Execution rate for Safety improvement plans
%
2024
60
90
Improve employee engagement clearly above
benchmark level 2)
Score
2030
7.7 3)
7.5 4)
Commitment to ensure that all employees receive
an adequate wage and to not have unreasoned or
unexplained gender pay gaps
Proceeding
as planned,
Yes/No
Annual
N/A
Yes
1) Target includes own employees and value chain workers working at Fortum’s sites (contractors' employees).
2)Industry benchmark for ‘Energy and Utilities’ sector.
3)Industry benchmark value 2024.
4)Excludes the recycling and waste business divested in November 2024.
The targets address the material impacts and reflect the objectives of the Code of Conduct.
Safety is top priority for Fortum. Fortum has set targets for both the prevention of accidents in
the long-term, as well as to continuously improve safety culture through annual action-based
targets.
To further foster employment security and dialogue with employees, Fortum has identified the
employee experience, which is expressed by employee engagement, as one of the strategic
targets at Group level. The employee engagement target is measured through an employee
survey. The target value is based on the industry benchmark result and is revised on an
annual basis.
Targets have been set by taking into account employee feedback from the employee survey and
Fortum’s performance against the targets. Areas of improvement based on performance have
been identified and addressed in the action plans related to the targets.
Performance against the targets is described in more detail below.
91
3.2.5 Taking action and tracking effectiveness of actions on own
workforce
To manage and enhance the material impacts related to own workforce, Fortum has taken the
actions described below. The overall responsibility to facilitate own workforce-related actions is
with the People function. The Safety and Security function is responsible for the development of
safety-related processes. Each function has a responsibility to follow the processes.
Actions
Gender equality and adequate wages: Competitive remuneration is essential for attracting and retaining talented
people. The key objective of remuneration is to encourage and recognise high performance and behaviour that is
in line with Fortum’s values and leadership principles, and that enables successful implementation of Fortum’s
strategy.
Ensure fair remuneration through job classification system: To ensure equal and fair pay, Fortum has
a harmonised job classification system in all operating countries that defines the basis for setting
the base salary for different roles.
Conduct annual wage reviews: Fortum conducts an annual salary benchmarking to ensure
compensation remains competitive in comparison to the market. This comprehensive analysis is
carried out to align pay structures with industry standards and to attract and retain talent. Fortum
also conducts an annual wage review against minimum wages and wages determined in the
collective bargaining agreements to monitor and track that all employees are being paid an
adequate wage. All Fortum employees are paid an adequate wage in line with applicable
benchmarks.
Develop methodology to assess gender pay gap: During 2025 Fortum will further develop
methodology to assess gender pay gap and has acquired a pay equity analysis tool to be able to
identify unjustified disparities in pay.
Fostering engagement
Promote employee engagement: Fortum promotes employee engagement by supporting efficient
adoption of the Employee Voice feedback process across the organisation. Particular focus is on
continuous development and feedback loops. Key phases are monitoring results, understanding
received feedback and experiences, and setting action plans to further improve the identified
engagement drivers, such as strategy, recognition and belief, as well as supporting drivers, e.g.,
health, wellbeing, diversity and inclusion. The effectiveness of actions is tracked twice a year with
the Employee Voice survey engagement score. See 3.2.6 Engaging with own workforce on impacts.
Actions
Health and safety: Safety is developed systematically in all operations. Safety of own employees and of
contractors’ employees is equally important, therefore, own employees’ and contractors’ safety management
and metrics are described together.
Ensure governance and compliance: The Sustainability Policy, the Minimum Requirements for EHS
(environment, health and safety) Management, and more detailed EHS manuals steer safety work.
Fortum regularly updates the requirements and assesses the business units’ compliance with the
requirements. A certified ISO 45001 occupational health and safety management system covers
100% of Fortum’s production sites. Internal audits and external audits by independent auditors are
regularly conducted at power plants to improve operations.
Actively manage risks: Fortum has an occupational risk management system covering all levels,
from strategic risks and business planning to daily work. A risk management plan is drafted on the
basis of a risk assessment. Assessments and plans are made in collaboration with those working at
the sites, and they are updated at agreed intervals, as well as when conditions change.
Report incidents and share learnings: Incidents and the findings of investigations are reported in the
incident management system. Learnings are shared with the organisation.
Implement safety improvement plans: Each business unit has defined relevant action points in
specified target areas: health and wellbeing, contractor management, learnings and skills, and
leadership. In addition, all units have a common target: the completion rate of the Safety and
Security Leadership programme. The results are calculated at Group level. The overall execution rate
for safety improvement plans in 2024 was 90%, which exceeded the set target of 60%.
Educate personnel: Fortum invites its employees to be actively involved in creating the joint safety
culture. Fortum’s Safety Culture Programme was launched in 2022. The programme includes
trainings, webinars and workshops for all organisational levels. The programme continued in 2024 as
the Safety and Security Leadership Programme. Over 550 persons completed the Management
Safety and Security Leadership Programme, exceeding the targeted 460 persons.
Support and measure wellbeing: Fortum measures its employees' perceptions on health and
wellbeing as well as Fortum's efforts to support them in mental, physical and social wellbeing
through an employee survey carried out twice a year. November 2024 health and wellbeing score
was 7.9 (excluding recycling and waste business employees), at par with the energy and utility sector
peer benchmark.
Monitor contractors’ safety management and performance: Safety management and performance
monitoring is part of the selection of contractors, contract requirements, induction, on-site
supervision and post-evaluation of contractors. The process to report safety risks, near misses and
incidents, as well as feedback on safety performance is agreed with contractors.
Follow-up safety key performance indicators: The effectiveness of actions is tracked on a monthly,
quarterly and annual basis through safety key performance indicators outlined in the table below.
Fortum's safety performance improved in 2024, reflected in TRIF value, but reaching the target level
requires continuous work on safety culture and learning from incidents and near-misses. In 2024,
two severe injuries occurred. Contractor’s employee in Wrocław (Heating and Cooling, Poland), fell
from a height of approximately four metres resulting in foot and spine fractures. The corrective
actions presented by the investigators focused on the control of contractors and the risk
assessments in different design phases. The responsible persons were defined, and the
implementation of corrective actions will be followed. Another severe injury happened to a
contractor in Karåsen hydropower plant (Hydro generation, Sweden). During lifting work, the
contractor's hand was squeezed, which led to amputation of a finger. As a corrective measure, the
requirements of the lifting plans will be updated.
92
Health and safety metrics
Health and safety metrics related to own workforce and value chain workers (contractors’
employees) working at Fortum’s sites are presented in the table below:
As indicated
2024
Workers covered by health & safety management system, own workforce, % 1)
100
Severe accidents, number 6)
2
of which fatalities, employees 2)
0
of which fatalities, contractors 2)
0
Total Recordable Injuries (TRI), employees and contractors, number
55
Employees 3)
22
Contractors' employees 3)
33
Total Recordable Injury Frequency (TRIF), injuries per million working hours, employees and
contractors
4.0
Employees 3)
2.3
Contractors' employees 3)
7.7
Lost Time Injuries (LTI), number 6)
37
Employees
10
Contractors' employees
27
Lost Time Injury Frequency (LTIF), injuries per million working hours, employees and contractors 6)
2.7
Employees
1.0
Contractors' employees
6.3
Occupational diseases, number 4)
0
Days lost to work-related injuries and fatalities from work-related accidents, work-related ill
health and fatalities from ill health, number 5)
69
1)The percentage of people in own workforce who are covered by the health and safety management system based on
legal requirements and/or recognised standards or guidelines.
2)The number of fatalities as a result of work-related injuries and work-related ill health.
3)The number and rate of recordable work-related accidents.
4)Includes cases outlined in the ILO List of Occupational Diseases, own employees.
5)The number of days lost to work-related injuries and fatalities from work-related accidents, work-related ill health and
fatalities from ill health, own employees.
6)Voluntarily disclosed information. 
Reporting principles
In incident reporting, Fortum follows the principles of the United States Occupational Safety and
Health Administration (OSHA) and ILO’s practices on recording and notification of occupational
accidents and diseases.
The following definitions are used for health- and safety-related metrics:
• Fatality is a work-related accident that leads to death as a result of injuries incurred within one
year from the day of the accident.
• Severe accident is an accident with severe and life-threatening injuries that potentially could
lead to fatal or permanent disability.
• Total Recordable Injuries (TRI) is the sum of lost-time injuries (LTI), restricted workday cases
(RWC) and medical treatment cases (MTC).
• Restricted Workday Case (RWC) is a work-related accident that has led to a situation whereby
a person cannot perform his or her normal work duties during the working day or shift
following the day of the accident, but he or she can be directed to other appropriate work
duties.
• Medical Treatment Case (MTC) is a work-related accident that has required treatment
measures by a doctor or other medical personnel but has not led to absence from normal work
duties, excluding the day or shift of the accident.
• Total Recordable Injury Frequency (TRIF) is the number of total recordable injuries per million
working hours.
• Lost-Time Injury (LTI) is a work-related accident that results in a person being unable to work
on any day after the day of occurrence of the accident, including fatalities. Any day includes
rest days, weekend days, leave days and public holidays.
• Lost-Time Injury Frequency (LTIF) is the number of accidents that result in a person being
unable to work on any day after the day of occurrence of the accident, including fatalities, per
million working hours.
• Occupational disease is a disease that has resulted from an exposure over a period of time to
risk factors arising from work activity. Occupational diseases are listed in the ILO List of
Occupational Diseases.
• Number of lost days is the sum of calendar days lost as a result of the recordable injury or
illness, not including the day on which the injury or illness occurred. The counting stops after
180 days. In case of fatalities and permanent disability injuries, 180 days is automatically
calculated.
93
3.2.6 Engaging with own workforce on impacts
Fortum has several ways to engage and hear employee feedback on impacts. The overall
responsibility to facilitate engagement-related supportive processes with own workforce is with
the People function. Engagement is managed through business and corporate function
management teams, supported by the People function.
Fortum uses a real-time and flexible feedback tool, Employee Voice, to engage with employees
on impacts and opportunities related to them. The survey is conducted at Group level twice a
year and addresses topics such as engagement and employee satisfaction, health and
wellbeing, strategy, rewarding, diversity, equity and inclusion. The survey also gathers
employees’ perceptions related to discrimination and inclusiveness, regardless of background,
with the aim of assessing experiences of employees that may be particularly vulnerable. The
survey allows managers and employees to see the anonymous results, and the results are
communicated to employees at company and team level. Actions to be taken based on
employee feedback are agreed and followed-up together in the teams. Each manager is
accountable for driving the actions in their own team. The results of the survey are monitored at
the team, function, and company level to monitor the effectiveness of actions taken and to
identify needs for support. 
Fortum also engages with employees through the Fortum European Council (FEC). Fortum does
not have a global framework agreement, but the FEC constitutes as Fortum’s Europe-level
cooperation function in which personnel and the FLT representatives meet. The goals of the FEC
are to develop a dialogue between the Group management and employee representatives on
company strategy and the status of various activities, enhance information exchange within the
Group, improve corporate activities and decision-making, as well as increase the understanding
of different cultures, work policies, and the importance of personnel motivation and wellbeing.
The FEC meets twice a year.
Safety-related matters are discussed regularly with employees and value chain workers working
at Fortum’s sites. To engage with employees on health- and safety-related issues and to develop
the safety culture further, Fortum has occupational safety committees or similar bodies in place,
representing all personnel groups. They regularly address issues related to occupational safety
and workplace wellbeing. As part of the Safety and Security Leadership Programme, Fortum
engages employees through trainings, webinars and workshops at all organisation levels. Safety
is discussed with contractors and their employees regularly through safety walks and meetings.
Safety-related engagement is managed by the Safety and Security function.
In addition, Fortum has several other ways to engage with its employees and other stakeholders.
See section 1.3.2 Interests and views of stakeholders.
3.2.7 Remediating negative impacts on own workforce and grievance
mechanisms
If human rights violations are discovered in Fortum’s operations, an investigation is initiated
together with the relevant business or function to understand the root causes and to prevent
similar violations from occurring. Corrective action is taken to prevent any broader impact and, if
possible, to remediate any damage.
Fortum provides internal and external reporting channel for the reporting of any suspected
misconduct relating to labour conditions or human rights violations. Employees are encouraged
to report any misconduct to their manager or through the reporting channel. The process for
handling reports and the protection of whistleblowers is described in section 4.4 Reporting
misconduct and protection of whistleblowers.
3.3 Workers in the value chain
3.3.1 Introduction to workers in the value chain
Workers in the value chain include employees of suppliers of goods and services, excluding
energy purchased for retail, as well as value chain workers that work at Fortum’s sites
(contractors’ employees). Fortum’s supply chain is global. Potential suppliers are screened for
sustainability risks and management practices, and they are expected to follow the Supplier
Code of Conduct, committing them to respecting human and labour rights. For Fortum, the
safety of contractors’ employees is a key priority.
3.3.2 Material impacts, risks and opportunities for workers in the value
chain
Fortum has identified the following material negative impacts in its upstream value chain. The
short-term potential impacts are related to working conditions at suppliers’ manufacturing sites,
human rights, and the health and safety of contractors’ employees working at Fortum’s sites.
Fortum has not identified material impacts on downstream value chain workers. For more
information on the double materiality assessment process and a basis of understanding of the
value chain impacts, see 1.4 Double materiality assessment.
94
IRO reference
Description
Negative impacts
IRO S2.1
Excessive working hours, inadequate wages, insufficient health and safety practices, gender
inequality and limited right to collective bargaining in supply chains violate value chain
workers' rights at work and have a negative impact on their quality of life, health and
wellbeing. Fortum may be linked to these impacts through its supply chains. The probability of
the negative impact varies between product categories and manufacturing countries. The
potential impacts are most relevant to upstream value chain workers working in the
manufacturing of equipment, materials and chemicals globally, and particularly in high-risk
countries. Hindering of the right to bargain collectively and excessive working hours are
widespread and structural issues in some high-risk countries. Fortum has limited visibility to
vulnerable groups, such as migrant workers in the supply chain.
IRO S2.2
Use of forced, involuntary, or child labour violates human rights and children’s rights. A
potential risk of forced labour has been identified especially in solar components
manufacturing. Use of child labour is possible in supply chains in high-risk countries; therefore,
Fortum may be linked to it through its supply chains.
IRO S2.3
Safety incidents have a negative impact on health and safety of contractors' employees who
work at Fortum's sites.
The management of material impacts is described in the following sections. Fortum considers
the safety of contractors’ workers equally important as the safety of its own employees and thus
management of health and safety of contractors’ workers working at Fortum’s sites is disclosed
in 3.2 Own workforce, sections 3.2.4 – 3.2.6.
3.3.3 Policies on workers in the value chain
The key policies to address the management of material impacts related to workers in the value
chain are the Code of Conduct, the Supplier Code of Conduct and the Sustainability Policy. The
policies cover suppliers and their workers, as well as sub-contractors and sub-suppliers.
Fortum’s policy commitment to human rights and due diligence, and cases of non-compliance
are described in section 3.1.2 Policies on social matters and respect for human rights. The
policies are available on Fortum’s website.
The Supplier Code of Conduct outlines the requirements for Fortum’s suppliers. The Supplier
Code of Conduct is based on the ten principles of the UN Global Compact, aligned with the UN
Guiding Principles of Business and Human Rights and the OECD Guidelines for Multinational
Enterprises on Responsible Business Conduct, and it addresses the ILO fundamental rights at
work, as well as internationally proclaimed human rights that are expressed in, e.g., the
International Bill of Human Rights. The Supplier Code of Conduct addresses the material impacts
related to value chain workers, including working hours, adequate wages, health and safety,
non-discrimination, freedom of association and collective bargaining. The Supplier Code of
Conduct specifically addresses the prohibition of any form of forced labour and child labour.
The policy does not specifically address human trafficking. These policies are accompanied by
instructions, manuals and training to support implementation, as outlined in section 3.1.2
Policies on social matters and respect for human rights. The Supplier Code of Conduct,
procurement process and audit findings are described in section 4.5 Management of
relationships with suppliers.
3.3.4 Targets for workers in the value chain
Fortum’s targets related to workers in the value chain and performance against the targets are
presented in the table below.
Measure
Target year
Target value
2024
Supplier qualification rate 1)
%
Annual
85
81
Enhance supply chain due diligence by developing
supplier evaluation and supply chain data
management
Proceeding
as planned,
Yes/No
2026
N/A
Yes
1) Spend from qualified suppliers divided by total procurement spend in scope of qualification process. Recycling and waste
business is included until the date of disposal.
Supplier qualification is a systematic process for evaluating suppliers’ sustainability practices
and monitoring that the minimum internal and external requirements are met when selecting
suppliers, as well as to meet the objectives of the Supplier Code of Conduct. Supplier
qualification reflects the content of the Supplier Code of Conduct and addresses the material
impacts. Rigorous implementation of the qualification process ensures identification of
potential risk suppliers and ensures the application of further mitigation measures for high risk-
suppliers.
Fortum aims to further develop its supply chain due diligence to address the impacts on value
chain workers and to strengthen the implementation of the Supplier Code of Conduct. Actions
and performance against the targets are described in more detail in the section below.
Targets have been set by taking into consideration stakeholder views in the double materiality
assessment. Value chain workers’ views are consolidated through audit reports and external
reports of NGOs; e.g., areas of improvement based on performance have been identified and
addressed in the action plans related to the targets.
95
3.3.5 Taking action and tracking effectiveness of actions on workers in
the value chain
Fortum’s approach to managing impacts related to value chain workers and to the fulfilment of
fundamental human and labour rights is based on thorough risk and impact assessments
included in various processes. Fortum assesses, among other things, the country-related human
rights risks and pays particular attention to supplier evaluation prior to supplier selection.
Fortum manages material impacts in supply chains through its procurement process described
in section 4.5 Management of relationships with suppliers.
To mitigate material impacts on value chain workers, Fortum has identified several actions, outlined
in the table below, to further enhance its practices of supply chain sustainability management. The
Procurement function is responsible for procurement and supply chain sustainability management-
related processes, with support from the Corporate Sustainability function.
Actions
Develop supply chain evaluation and data management system: Fortum will further develop supply chain evaluation
and data management systems by the end of 2026. This will enable Fortum to gain better visibility and control over
the supplier base, collaboration and dialogue with suppliers, as well as support continuous improvement of
sustainability performance. The target to enhance supply chain due diligence is proceeding according to plan. In
2024, Fortum defined the development needs related to supply chain data and mapped potential solutions for data
management.
Develop sustainability criteria: Fortum will also further develop sustainability criteria to address the relevant
sustainability impacts or risks in different procurement categories. In 2024, Fortum conducted an assessment of the
sustainability risks of 14 metals and minerals as well their relevance to different business areas. Metals and minerals
generally involve significant sustainability risks in their supply chain. Fortum continues to work on how to address
those in procurement processes.
Implement and monitor supplier qualification: To meet the target on supplier qualification rate, Fortum will continue
implementation of the supplier qualification process and monitor it through regular key performance indicators.
3.3.6 Engaging with value chain workers on impacts
Fortum assesses the impacts on value chain workers through external sources, such as NGO
studies or research reports, audit reports and stakeholder surveys. Reports to the anonymous
reporting channel are also taken into account. Direct engagement with value chain workers is
through supplier audits. When seeking to understand value chain workers’ perspectives through
external studies and reports, the engagement is with their credible proxies having insight into
their situation. Operational responsibility for supplier audits and being aware of other sources
that provide relevant information on working conditions in the relevant supply chains is with the
Corporate Sustainability function.
Fortum conducts sustainability audits at suppliers’ facilities. In the audits, a sample of
employees is interviewed by an independent, third-party auditor, and their views are
consolidated in an audit report submitted to Fortum. The working conditions of vulnerable
groups, such as migrant workers, dispatched employees and female employees is part of audit
procedures. Audit procedures are described in more detail in section 4.5 Management of
relationships with suppliers.
3.3.7 Remediating negative impacts on workers in the value chain and
grievance mechanisms
If any violations related to human rights are discovered in Fortum’s product or service supply
chains, the case is investigated together with the relevant supplier. Corrective measures are
agreed in collaboration with the supplier, and implementation and effectiveness of the agreed
measures is monitored, e.g., through audits.
When non-compliances are found through a sustainability audit, the supplier makes a corrective
action plan, and its implementation and effectiveness is monitored on a case-by-case basis.
Fortum has internal and external reporting channel for the reporting of any suspected
misconduct relating to labour conditions or human rights violations. The channels are described
in the Code of Conduct and the Supplier Code of Conduct and are accessible on Fortum’s
internal and external websites. Fortum’s suppliers are expected to report any suspected
violation of the Supplier Code to their Fortum contact person via the local reporting channel, if
available, or the SpeakUp channel. Fortum does not have a system in place to track if the
channel is made available to value chain workers and if they trust using them. The process of
handling reports and protection of whistleblowers is described in section 4.4 Reporting
misconduct and protection of whistleblowers.
3.4 Affected communities
3.4.1 Introduction to affected communities
Affected communities include communities living or working around Fortum’s sites in Fortum’s
operating countries, including sites that Fortum has operations through joint ventures or
associated companies. Fortum aims for meaningful engagement with local stakeholders and
inhabitants to understand their concerns and to address impacts, if possible. 
96
3.4.2 Material impacts, risks and opportunities for affected
communities
Fortum has identified the following material positive and negative impacts related to affected
communities. The potential material negative impact relates to a minority-owned joint venture
company (Fortum’s value chain actor) that owns wind farms impacting areas of indigenous
peoples in Sweden and Norway. Fortum provides services, including stakeholder engagement,
to the plants, but does not have control over the company’s activities. The positive impact
applies both to the communities and inhabitants located and living around Fortum’s plants. The
impacts may also affect inhabitants in the wider area, e.g., the areas of commuting or animal
grazing. Medium-term impacts are related to existing sites, as well as to sites under
development. For more information on the double materiality assessment process, see 1.4
Double materiality assessment.
IRO reference
Description
Positive impact
IRO S3.1
Fortum has positive socio-economic impacts on local communities around its sites through
the provision of employment and indirect employment opportunities  through purchases of
products and services.  In addition, land leasing and taxes provide income for local
communities. Socio-economic impacts can apply to a wider area, e.g., the area of commuting
to work.
Negative impact
IRO S3.2
Activities in Fortum’s value chain, including the provision of services to wind power plants
have potential impacts on traditional land use modes, customary practices, and modes of
livelihood, e.g. traditionally practised reindeer herding of indigenous peoples. The impact is
linked to Fortum’s strategy to decarbonise industries and society.
3.4.3 Policies on affected communities
The key policy to address the management of material impacts related to affected communities
is the Sustainability Policy. In the Sustainability Policy, Fortum commits to acting with due
diligence and aims to prevent, mitigate, and remediate any actual and potential impacts related
to material sustainability topics; as well as to transparent communication, active dialogue and
collaboration with local communities. Fortum also aims to make the journey towards its target to
net-zero in a just manner, seeking to understand, and taking into account the impacts on local
communities, among others. Fortum considers local communities to include indigenous
communities, although policies do not specifically mention indigenous peoples. 
The Code of Conduct acknowledges that Fortum’s operations may have direct or indirect human
rights impacts on local communities, among others. Therefore, Fortum takes measures to act in
accordance with the UN Guiding Principles on Business and Human Rights. The policy
commitment to human rights due diligence and cases of non-compliance are described in
section 3.1.2 Policies on social matters and respect for human rights.
Fortum’s policies cover all operations, including those related to the material impacts on
affected communities.
3.4.4 Targets for affected communities
Fortum aims for meaningful engagement with local communities to ensure an understanding of
impacts on local inhabitants and to be able to take the impacts into account and to mitigate
them in operations, where possible. Fortum currently has not set any time-bound targets related
to affected communities as it does not have control over the activities of the joint venture
company related to the material negative impacts. Fortum, however, measures the effectiveness
of actions and engagement as described in the following sections.
3.4.5 Taking action and tracking effectiveness of actions on affected
communities
Actions to mitigate potential negative impacts and to promote positive impacts on affected
communities are described in the table below. An understanding of appropriate measures is
sought through engagement with the local community. The actions are managed and resourced
by the relevant business function, e.g. asset management of existing sites, or site development
when planning and developing a new plant. The effectiveness of actions is measured by direct
feedback from local stakeholders as part of stakeholder engagement, community events and
through feedback form provided to local stakeholders. Feedback received varies from positive
feedback related to benefits to the community, and concerns for example about noise or
changes on landscape.
97
Actions
Mitigate adverse impact during project development: Fortum takes action to prevent and mitigate adverse impacts
on affected communities during new site development. In the early phases of site planning, Fortum uses a screening
tool to identify whether the land is located in reindeer herding area or has religious or other specific importance to
indigenous peoples, and adjusts plans accordingly, where possible. Requirements set by authorities during permit
process are followed.
Mitigate adverse impact during plant operations: Where possible, site operations are scheduled so that the impact 
on local residents and, e.g., on reindeer herding is minimised.
Support local communities through land lease and taxes: Land lease and taxes create income for local communities
and municipalities. Lands are leased for wind and solar power production from several local landowners. The lease
period typically covers the full technical lifetime of the power plant and can be longer to anticipate a possible
lifetime extension, giving local residents a stable income for years.
Support economy through contractor network: Fortum’s plants provide employment opportunities directly and
indirectly through the use of wide contractor network.
Promote positive socio-economic impact through community contribution fund: To promote positive socio-
economic impacts, wind power plants have local community contribution funds in place. These funds aim to share
the benefits with local communities who organise the sharing of funds for purposes decided by the community itself.
Promote positive impacts through Corporate Social Responsibility (CSR) programme: Fortum collaborates with
communities and organisations at global, national and local levels through the CSR programme. Fortum follows the
impacts of the CSR collaboration on an annual basis. In 2024, Fortum, e.g., involved nearly 150 local sports clubs
along the rivers with Fortum’s hydropower plants to river clean-up events. The initiative provides young people an
opportunity to positively contribute to a cleaner environment while raising money for their sports club.
3.4.6 Engaging with affected communities on impacts
Stakeholder consultation is part of the formal permit process in new site development in which
Fortum systematically gathers stakeholders’ views through public meetings and written
feedback. The feedback is taken into consideration in planning. In addition to the formal
consultation, Fortum actively seeks to enter into direct dialogue with relevant stakeholder
groups, such as municipalities, local associations and indigenous communities. In case of
impacts on indigenous peoples, Fortum seeks to ensure the indigenous community’s right to
free, prior, and informed consent with regard to their culture, traditions and land use by timely
and direct engagement with the community. Fortum seeks to agree on mitigation measures and
compensation directly with the local community. Operational responsibility for engagement is
with the relevant business.
As part of its service agreements, Fortum carries out stakeholder engagement with affected
communities potentially impacted by the joint venture wind farms in accordance with the
instructions given by the joint venture’s management. Through engagement, Fortum seeks to
provide transparent, timely information and to gain an understanding of local communities’ and
residents’ perceptions of the activities, potentially vulnerable groups, and the actual or potential
impacts on them. Fortum engages directly with the residents or legitimate representatives of
the affected community. Stakeholders may directly reach out to asset manager of the site and
Fortum also provides an opportunity to annual meetings, should the community wish to
have such.
Other means of stakeholder engagement are described in section 1.3.2 Interests and views of
stakeholders.
3.4.7 Remediating negative impacts on affected communities
The remediation of negative impacts has been agreed with indigenous communities impacted
by the joint venture wind farms. The effectiveness of actions is measured by feedback received
from the locals.
Fortum has internal and external reporting channel for the reporting of any suspected
misconduct, or to raise concerns. The channel is available to local communities via Fortum’s
website. Fortum has no system in place to monitor if communities trust the channel. The process
of handling reports and protection of whistleblowers is described in section 4.4 Reporting
misconduct and protection of whistleblowers.
98
4 Business conduct
4.1 Introduction to business conduct
Fortum promotes transparent and compliant corporate culture through its values, the Code of
Conduct and the implementation of these through, e.g., communication and training. This
section outlines practices to address compliance management, whistleblower protection and
supplier relationship management.
4.2 Material impacts, risks and opportunities for business
conduct
Fortum considers ethical business conduct and corporate culture essential for successful
business. Although business conduct-related impacts, risks and opportunities did not exceed
the defined materiality threshold in the double materiality assessment, the following three
impacts are considered to be material following management decision. For more information on
the double materiality assessment process, see 1.4 Double materiality assessment.
IRO reference
Description
IRO G1.1
Effective compliance management, ethical business conduct, as well as the prevention and
detection of corruption and bribery, as they are the basis of ethical corporate culture.
IRO G1.2
Fortum encourages employees and other stakeholders to raise concerns and report any
misconduct when necessary and considers the protection of whistleblowers critical to build
trust in the channels.
IRO G1.3
Managing relationships with suppliers, as it is essential for the effective management of
sustainability- and compliance-related impacts and risks.
The management of material topics is outlined in the following sections.
4.3 Policies on business conduct and corporate culture
Key policies and instructions on business conduct matters are presented in the table below.
Policies and instructions marked with ’OO’ relate to own operations. Those marked with ‘VC’ aim
to address impacts, risks and opportunities within the value chain, although not all of them are
directly binding on Fortum’s value chain actors.
Document name
Business
conduct
Management of
relationships
with suppliers
Anti-
corruption
and bribery
Key policies, instructions and manuals
Code of Conduct (OO, VC)
•
•
•
Supplier Code of Conduct (VC)
•
•
•
Sustainability Policy (OO, VC)
•
•
•
Group Instruction on Fortum Speak-Up procedures  (Speak-Up
Policy, OO, VC)
•
•
Business Ethics Instructions (OO, VC)
•
•
•
Other related policies, instructions and manuals
Group Risk Policy (OO, VC)
•
•
•
Disclosure Policy (OO)
•
Group Counterparty Risk Instruction (VC)
•
•
•
Sustainability Governance Model (OO)
•
Procurement Group Instructions and Governance Model (OO, VC)
•
Investment Manual (OO, VC)
•
•
•
Group Manual for Sustainability Assessment (OO, VC)
•
•
Group Instructions for Corporate Social Responsibility (CSR)
Programme Governance Model (OO)
•
•
Business Ethics Guidelines for Lobbying (OO)
•
•
Tax Principles (OO)
•
Accounting Manual (OO)
•
Fortum Insider Rules (OO)
•
The key policies to address and express Fortum’s commitment to ethical business conduct, zero
tolerance of corruption and bribery, compliance with international sanctions, and management
of supplier relationships are the Code of Conduct, the Supplier Code of Conduct, the Business
Ethics Instructions, the Sustainability Policy, and the SpeakUp Policy. The Code of Conduct and
the SpeakUp Policy outline the process for reporting misconduct and for protecting
whistleblowers. The policies are approved by the Board of Directors and apply to all employees,
businesses and corporate functions in all operating countries, as well as to Fortum’s business
partners. Fortum’s commitment to anti-corruption and anti-bribery is consistent with the United
Nations Convention against Corruption.
The Code of Conduct, the Supplier Code of Conduct, the Business Ethics Instructions, and the
SpeakUp Policy are available in several languages and accessible to every employee and
contractor internally. The Code of Conduct and the Supplier Code of Conduct are publicly
available on Fortum’s website.
Policies are accompanied by instructions to guide implementation, including mechanisms for
identifying, reporting and investigating concerns about unlawful behaviour or behaviour
contradicting the Code of Conduct.
99
Fortum has procedures for investigating business conduct incidents, including incidents of
corruption and bribery, in a professional manner. All employees are expected to complete the
relevant mandatory training modules related to business conduct as part of induction, and
whenever relevant. Business ethics and corporate culture are also promoted through
communication.
4.4 Reporting misconduct and protection of whistleblowers
Fortum provides reporting channel for the reporting of suspected misconduct. The anonymous
SpeakUp channel is available in several languages for all employees and external stakeholders,
including workers in the value chain and affected communities.
Internal and external stakeholders are provided with information on reporting concerns, as well
as the process for handling and investigating reported concerns. Fortum raises awareness of
the channels through internal communications and mandatory Code of Conduct training and
encourages the reporting of all potential non-compliance cases. Although Fortum does not have
a system to track if employees or other stakeholders trust using these channels, Fortum
describes the process to handle reports transparently in order to build trust in the channel.
Fortum handles all reports with the highest integrity in accordance with EU’s Whistleblowing
Directive and national legislation. Persons receiving the reports follow the written instructions
concerning personal data processing and confidentiality. The Group Compliance Officer
assesses the cases and assigns an investigation team. For cases requiring further investigation
after the initial assessment, the Compliance & Ethics team prepares an investigation report,
including findings, recommendations, and possible corrective actions. If the concern is justified,
appropriate measures are taken, which take into account findings from the investigation. Fortum
aims for a dialogue with the whistleblower when seeking to solve the case, and the channel
supports the dialogue. The identity of the reporter is always protected. Fortum does not tolerate
any form of retaliation towards anyone bringing misconduct or possible misconduct to light.
4.5 Management of relationships with suppliers
Fortum is a significant purchaser of goods and services, including goods and services related to
operation and maintenance of plants and facilities, fuels, as well as IT solutions and professional
services. Procurement's objective is to enable strong business performance and sustainable
purchasing processes and to secure the availability of the right materials and services
considering the needs and requirements of the businesses. Fortum aims for open and effective
collaboration with suppliers, management of social and environmental sustainability, and
ensuring ethical business behaviour in the supply chain. Effective management of the supplier
relationship is the key action to address the material impacts on value chain workers. See
section 3.3.2 Material impacts, risks and opportunities for workers in the value chain for workers
in the value chain.
To ensure equal treatment of suppliers, special attention is paid to the training of procurement
personnel. In 2024, procurement personnel participated in training on the supply chain
sustainability management process and tools. In order to motivate and track the effectiveness
of the processes, procurement employees have annual financial performance targets related to
supplier management practices, such as conducting supplier sustainability assessments,
creating fair competition, and communicating with strategic suppliers.
4.5.1 Processes to manage sustainability in the supply chain
Fortum has the following ongoing processes and actions to manage sustainability in the supply
chain:
Actions
Ensure governance: The Supplier Code of Conduct outlines the requirements for suppliers and business partners.
The Supplier Code of Conduct is included in purchase agreements with a contract value of EUR 100,000 or more.
Fortum reserves the right to monitor whether its suppliers observe the Supplier Code of Conduct by requesting
information and conducting on-site audits. Suppliers who fail to observe the Supplier Code of Conduct are expected
to take immediate corrective action, and Fortum reserves the right to terminate the relationship with a supplier that
cannot demonstrate compliance with the Supplier Code of Conduct.
Evaluate suppliers’ social, environmental and governance practices: Supplier qualification is Fortum’s process for
evaluating suppliers’ sustainability practices and monitoring that the minimum internal and external requirements
are met when selecting suppliers. In the qualification process, Fortum determines and assesses, among other things,
the supplier’s possible operations in risk countries, certified management systems and the occupational safety
performance of the contractors. Fortum also pays special attention to practices related to anti-corruption, human
and labour rights and environment (especially related to GHG emissions, environmental management, licences and
certificates). Once completed, the qualification is valid for three years.
Manage compliance risks with suppliers: Fortum has a 'Know Your Counterparty' (KYC) process to assess
compliance risks, including legal, reputational, ethical, sustainability and security risks, related to existing and
potential suppliers and other counterparties. The KYC process is mandatory when the contract value is EUR 100,000
or more.
Audit suppliers with potential sustainability risks: Fortum assesses the supplier’s compliance with the requirements
in the Supplier Code of Conduct by conducting audits. The risk-based audits are conducted on-site, and include site
inspections, management and employee interviews, and reviews of documents. Fortum uses an external service
provider to conduct the audits, especially in risk countries. In low-risk countries, the audits can be conducted by
Fortum’s own personnel who have received training in auditing. In 2024, Fortum conducted 23 supplier audits, of
which eight were conducted by external auditors in China and the rest by internal auditors in EU countries.
Monitor corrective actions: If non-compliances are found in an audit, the supplier makes a plan for corrective
actions and Fortum monitors implementation. In cases of severe non-compliance, the cooperation can be continued
only if the corrective actions are implemented and verified. In 2024, the majority of non-compliances identified in the
audits were related to overtime hours and occupational safety. The findings were communicated to suppliers with
request to make a corrective action plan to address them. No severe non-compliances related to freedom of
association and employee collective bargaining rights, child labour, forced labour or discrimination were identified.
Monitor fuel supply chain sustainability: In addition to the normal supply chain sustainability management
processes, Fortum has a due diligence process to assess the origin and sustainability certification of forest-based
biomass. Uranium suppliers are audited for sustainability to verify appropriate environmental, social and human
rights management practices at production.
Increase leverage in collaboration with peers: To increase leverage in addressing supply chain sustainability risks,
Fortum participates in the Solar Stewardship Initiative (SSI), aiming to improve the transparency and sustainability of
supply chains in the solar industry. The SSI consists of an assurance process to verify environmental, social and
human rights management practices in solar supply chains and on manufacturing sites.
100
4.5.2 Handling of Supplier Code of Conduct breaches
Fortum has a procedure for handling suspected breaches of the Supplier Code of Conduct.
When information is received about a suspected breach of the Supplier Code of Conduct, e.g.,
through screening tools, the SpeakUp channel, media, or other channels, representatives from
Procurement, Legal, Sustainability and the respective business assess the seriousness of the
breach, Fortum’s contractual position, and the impacts on Fortum’s business and reputation.
The supplier is asked to provide further information about the possible breach; based on the
response, a further investigation or corrective actions are agreed. As a final option, the supplier
contract may be terminated.
4.6 Prevention and detection of corruption and bribery
All employees, members of Fortum’s corporate bodies, suppliers, and supporting contractors are
expected to comply with all relevant laws and regulations to prevent corruption and bribery. The
Compliance & Ethics function is a dedicated unit responsible for investigating cases of bribery
and corruption, and responding to allegations. Fortum takes the following actions to prevent
and detect corruption and bribery.
Actions
Assess compliance risks related to counterparties: Fortum has implemented a ’Know Your Counterparty’ process to
assess corruption and bribery risks, reputational impact, social and environmental risks, and other compliance risks
when collaborating with counterparties. A similar ’Know Your Partner’ process assesses these risks when working
with strategic partners.
Regularly assess compliance enterprise risks and investigate suspected misconduct: Fortum assesses compliance
enterprise risks, including the likelihood and impact of breaching anti-corruption and anti-bribery laws. The
investigation process ensures a fair and objective approach. Internal policies require that members of investigating
committees are free from conflict of interest. These committees are always separate from the management chain
involved in the matter. In every investigation, the Group Compliance Officer, after consulting the General Counsel,
considers whether there is a need to report the misconduct to the police or other authorities, considering local legal
requirements. Fortum proactively cooperates with police authorities and provides support when requested.
Educate employees: Training on business conduct is provided to all employees, see 4.6.3 Training on business
conduct and anti-corruption and anti-bribery. If behaviour indicative of corruption is identified within an
organisational unit, dedicated training is provided to the unit’s decision-makers after the investigation has been
completed. Decision-makers include members of the administrative, management and supervisory bodies.
Monitor and report misconduct: Suspected misconduct and measures related to ethical business practices and
regulatory compliance are regularly monitored and assessed by the ARC.
4.6.1 Targets for corruption and bribery
Fortum’s target related to business conduct and performance against the target is presented in
the table below.
Measure
Target year
Target value
2024
No incidents of corruption and bribery
Number of incidents
Annual
0
0
In 2024, there were no confirmed incidents of corruption or bribery.
4.6.2 Metrics for corruption and bribery
Confirmed incidents of corruption and bribery are presented in the table below:
Number or as indicated
2024
Convictions for violation of anti-corruption and anti-bribery laws
0
Amount of fines for violation of anti-corruption and anti-bribery laws, EUR
—
Total number of confirmed incidents
0
Confirmed incidents in which own workers were dismissed or disciplined for corruption or bribery-
related incidents
0
Confirmed incidents relating to contracts with business partners that were terminated or not
renewed due to violations related to corruption or bribery
0
4.6.3 Training on business conduct and anti-corruption and anti-bribery
Training is a fundamental part of compliance management. Training on business conduct, anti-
corruption and anti-bribery is provided to all employees as part of the mandatory Code of
Conduct training, including to employees who are in administrative, management or supervisory
bodies of Fortum companies.
Fortum has identified the functions that have a higher risk of corruption and bribery due to the
nature of their role. They are employees in procurement and sales, plant managers and
investment specialists. Fortum is further developing its training programme to systematically
address all relevant functions at risk and to monitor the completion of training. In addition,
relevant individuals receive dedicated training based on a need or identified risks.
The completion rate of the Code of Conduct training is presented in the table below. The
completion rate includes employees of functions-at-risk. The training is mandatory to all
employees, but the completion may be missing from, for example, recently started employees
and due to longer absences. In 2024 Fortum introduced an improved process for managing
eLearnings and ensuring their completion. 
%
2024
Code of Conduct training completion
97
101
5 Content indices
5.1 Material disclosure requirements
The following table lists material disclosure requirements that have guided the preparation of
this sustainability statement. The table can be used to navigate and find information in this
sustainability statement relating to specific disclosure requirements.
All disclosure requirements in topical standard S4 (Consumers and end-users) have been
omitted, as the topic was not identified as material in the double materiality assessment. In
addition, the following disclosure requirements for material topics have been omitted as not
material: E1-7, E2-6, E3-5, E4-6, E5-4, E5-6, S1-8, S1-9, S1-11, S1-12, S1-13, S1-15, S1-16, G1-5, and
G1-6. A disclosure requirement is not considered material if the information is not relevant in
terms of its significance to the matter it aims to depict or explain, and/or if it is not considered
material to meet the users' decision-making needs.
For more information on the double materiality assessment process and results, see 1.4 Double
materiality assessment.
Reference
Topic
Section
Additional information
ESRS 2
General disclosures
BP-1
General basis for preparation of
sustainability statements
1.2.1 Basis of preparation
1.2.2 Reporting scope
BP-2
Disclosures in relation to specific
circumstances
1.2.2 Reporting scope
1.2.3 Time horizons
1.2.4 Use of estimates, judgement and forward-
looking information
2.2.8 Metrics for climate change
GOV-1
The role of the administrative,
management and supervisory
bodies
1.5.1 Role of administrative, management and
supervisory bodies
GOV-2
Information provided to and
sustainability matters addressed
by the undertaking’s
administrative, management and
supervisory bodies
1.3.1 Business model and value chain
1.5.1 Role of administrative, management and
supervisory bodies
GOV-3
Integration of sustainability-
related performance in incentive
schemes
1.1.4 Fortum’s sustainability targets
1.5.2 Sustainability-related performance in
incentive schemes
GOV-4
Statement on due diligence
1.5.4 Statement on sustainability due diligence
GOV-5
Risk management and internal
controls over sustainability
reporting
1.5.3 Risk management and internal controls
over sustainability reporting
SMB-1
Strategy, business model and
value chain
1.3.1 Business model and value chain
SBM-2
Interests and views of
stakeholders
1.3.2 Interests and views of stakeholders
Reference
Topic
Section
Additional information
SBM-3
Material impacts, risks and
opportunities and their interaction
with strategy and business model
1.4.2 Material impacts, risks and opportunities
2.2.2 Material impacts, risks and opportunities
for climate change
2.2.4 Resilience analysis
2.3.2 Material impacts, risks and opportunities
for pollution
2.4.2 Material impacts, risks and opportunities
for water
2.5.2 Material impacts, risks and opportunities
for biodiversity
2.6.2 Material impacts, risks and opportunities
for resource use and circular economy
3.2.2 Material impacts, risks and opportunities
for own workforce
3.3.2 Material impacts, risks and opportunities
for workers in the value chain
3.4.2 Material impacts, risks and opportunities
for affected communities
4.2 Material impacts, risks and opportunities for
business conduct
IRO-1
Description of the processes to
identify and assess material
impacts, risks and opportunities
1.4.1 Double materiality assessment process
IRO-2
Disclosure requirements in ESRS
covered by the undertaking’s
sustainability statement
5.1 Material disclosure requirements
5.2 Data points required by EU law
E1
Climate change
ESRS 2,
GOV-3
Integration of sustainability-
related performance in incentive
schemes
1.5.2 Sustainability-related performance in
incentive schemes
E1-1
Transition plan for climate change
mitigation
2.2.5 Targets for climate change
2.2.6 Transition plan for climate change
mitigation
2.2.7 Actions and resources for climate change
2.7.3 EU Taxonomy KPIs
ESRS 2,
SBM-3
Material impacts, risks and
opportunities and their interaction
with strategy and business model
1.4.2 Material impacts, risks and opportunities
2.2.2 Material impacts, risks and opportunities
for climate change
2.2.4 Resilience analysis
ESRS 2,
IRO-1
Description of the processes to
identify and assess material
climate-related impacts, risks and
opportunities
1.4.1 Double materiality assessment process
E1-2
Policies related to climate change
mitigation and adaptation
2.1.2 Policies on environmental matters
2.2.3 Policies on climate change
E1-3
Actions and resources in relation
to climate change policies
2.2.7 Actions and resources for climate change
E1-4
Targets related to climate change
mitigation and adaptation
2.2.4 Resilience analysis
2.2.5 Targets for climate change
2.2.6 Transition plan for climate change
2.2.8 Metrics for climate change
E1-5
Energy consumption and mix
2.2.8 Metrics for climate change
102
Reference
Topic
Section
Additional information
E1-6
Gross Scopes 1, 2, 3 and Total
GHG emissions
2.2.8 Metrics for climate change
E1-8
Internal carbon pricing
2.2.8 Metrics for climate change
E1-9
Anticipated financial effects from
material physical and transition
risks and potential climate-related
opportunities
Phased-in, not reported
in 2024
E2
Pollution
ESRS 2,
IRO-1
Description of the processes to
identify and assess material
pollution-related impacts, risks
and opportunities
1.4.1 Double materiality assessment process
E2-1
Policies related to pollution
2.1.2 Policies on environmental matters
2.3.3 Policies on pollution
E2-2
Actions and resources related to
pollution
2.3.5 Actions and resources for pollution
E2-3
Targets related to pollution
2.3.4 Targets for pollution
E2-4
Pollution of air, water and soil
2.3.6 Metrics for pollution
Only pollution of air
related metrics are
reported as material
E2-5
Substances of concern and
substances of very high concern
2.3.6 Metrics for pollution
E3
Water and marine resources
ESRS 2,
IRO-1
Description of the processes to
identify and assess material water
and marine resources-related
impacts, risks and opportunities
1.4.1 Double materiality assessment process
E3-1
Policies related to water and
marine resources
2.1.2 Policies on environmental matters
2.4.3 Policies on water
E3-2
Actions and resources related to
water and marine resources
2.4.5 Actions and resources for water
E3-3
Targets related to water and
marine resources
2.4.4 Targets for water
E3-4
Water consumption
2.4.6 Metrics for water
Only water-related
metrics are reported as
material
E4
Biodiversity and ecosystems
E4-1
Transition plan and consideration
of biodiversity and ecosystems in
strategy and business model
2.5.5 Transition plan for biodiversity
ESRS 2,
SBM-3
Material impacts, risks and
opportunities and their interaction
with strategy and business model
1.4.2 Material impacts, risks and opportunities
2.5.2 Material impacts, risks and opportunities
for biodiversity
2.5.7 Metrics for biodiversity
ESRS 2,
IRO-1
Description of processes to
identify and assess material
biodiversity and ecosystem-
related impacts, risks and
opportunities
1.4.1 Double materiality assessment process
2.5.4 Targets for biodiversity
2.5.7 Metrics for biodiversity
E4-2
Policies related to biodiversity and
ecosystems
2.1.2 Policies on environmental matters
2.5.3 Policies on biodiversity
E4-3
Actions and resources related to
biodiversity and ecosystems
2.5.5 Transition plan for biodiversity
2.5.6 Actions and resources for biodiversity
E4-4
Targets related to biodiversity and
ecosystems
2.5.4 Targets for biodiversity
Reference
Topic
Section
Additional information
E4-5
Impact metrics related to
biodiversity and ecosystems
change
2.5.7 Metrics for biodiversity
E5
Resource use and circular economy
ESRS 2,
IRO-1
Description of the processes to
identify and assess material
resource use and circular
economy-related impacts, risks
and opportunities
1.4.1 Double materiality assessment process
E5-1
Policies related to resource use
and circular economy
2.1.2 Policies on environmental matters
2.6.3 Policies on resource use and circular
economy
E5-2
Actions and resources related to
resource use and circular economy
2.6.5 Actions and resources for resource use and
circular economy
E5-3
Targets related to resource use
and circular economy
2.6.4 Targets for resource use and circular
economy
E5-5
Resource outflows
2.6.6 Metrics for resource use and circular
economy
Only waste-related
metrics are reported as
material
S1
Own workforce
ESRS 2,
SBM-2
Interests and views of
stakeholders
1.3.2 Interests and views of stakeholders
ESRS 2,
SBM-3
Material impacts, risks and
opportunities and their interaction
with strategy and business model
1.3.1 Business model and value chain
1.4.1 Double materiality assessment process
1.4.2 Material impacts, risks and opportunities
3.2.2 Material impacts, risks and opportunities
for own workforce
S1-1
Policies related to own workforce
3.1.2 Policies on social matters and respect for
human rights
3.2.3 Policies on own workforce
3.2.7 Remediating negative impacts on own
workforce and grievance mechanisms
S1-2
Processes for engaging with own
workers and workers’
representatives about impacts
3.2.6 Engaging with own workforce on impacts
S1-3
Processes to remediate negative
impacts and channels for own
workers to raise concerns
3.2.7 Remediating negative impacts on own
workforce and grievance mechanisms
4.4 Reporting misconduct and protection of
whistleblowers
S1-4
Taking action on material impacts
on own workforce, and
approaches to mitigating material
risks and pursuing material
opportunities related to own
workforce, and effectiveness of
those actions
3.1.2 Policies on social matters and respect for
3.2.2 Material impacts, risks and opportunities
for own workforce
3.2.5 Taking action and tracking effectiveness of
actions on own workforce
3.2.6 Engaging with own workforce on impacts
3.2.7 Remediating negative impacts on own
workforce and grievance mechanisms
S1-5
Targets related to managing
material negative impacts,
advancing positive impacts, and
managing material risks and
opportunities
3.2.4 Targets for own workforce
S1-6
Characteristics of the
undertaking’s employees
3.2.1 Introduction to own workforce
103
Reference
Topic
Section
Additional information
S1-7
Characteristics of non-employee
workers in the undertaking’s own
workforce
Phased-in, not reported
in 2024
S1-10
Adequate wages
3.2.5 Taking action and tracking effectiveness of
actions on own workforce
S1-14
Health and safety metrics
3.2.5 Taking action and tracking effectiveness of
actions on own workforce
S1-17
Incidents, complaints and severe
human rights impacts
3.1.2 Policies on social matters and respect for
human rights
Only data point 104(a) 
regarding non-respect of
UNGPs and OECD
Guidelines is reported as
material
3.2.3 Policies on own workforce
S2
Workers in the value chain
ESRS 2,
SBM-2
Interests and views of
stakeholders
1.3.2 Interests and views of stakeholders
ESRS 2,
SBM-3
Material impacts, risks and
opportunities and their interaction
with strategy and business model
1.3.1 Business model and value chain
1.4.1 Double materiality assessment process
1.4.2 Material impacts, risks and opportunities
3.3.2 Material impacts, risks and opportunities
for workers in the value chain
S2-1
Policies related to value chain
workers
3.1.2 Policies on social matters and respect for
human rights
3.3.3 Policies on workers in the value chain
3.3.6 Engaging with value chain workers on
impacts
3.3.7 Remediating negative impacts on workers
in the value chain and grievance mechanisms
S2-2
Processes for engaging with value
chain workers about impacts
3.3.6 Engaging with value chain workers on
impacts
S2-3
Processes to remediate negative
impacts and channels for value
chain workers to raise concerns
3.3.7 Remediating negative impacts on workers
in the value chain and grievance mechanisms
4.4 Reporting misconduct and protection of
whistleblowers
S2-4
Taking action on material impacts
on value chain workers, and
approaches to managing material
risks and pursuing material
opportunities related to value
chain workers, and effectiveness
of those actions
3.3.5 Taking action and tracking effectiveness of
actions on workers in the value chain
3.3.7 Remediating negative impacts on workers
in the value chain and grievance mechanisms
4.5 Management of relationships with suppliers
S2-5
Targets related to managing
material negative impacts,
advancing positive impacts, and
managing material risks and
opportunities
3.3.4 Targets for workers in the value chain
S3
Affected communities
ESRS 2,
SBM-2
Interests and views of
stakeholders
1.3.2 Interests and views of stakeholders
Reference
Topic
Section
Additional information
ESRS 2,
SBM-3
Material impacts, risks and
opportunities and their interaction
with strategy and business model
1.3.1 Business model and value chain
1.4.1 Double materiality assessment process
1.4.2 Material impacts, risks and opportunities
3.4.1 Introduction to affected communities
3.4.2 Material impacts, risks and opportunities
for affected communities
S3-1
Policies related to affected
communities
3.1.2 Policies on social matters and respect for
human rights
3.4.3 Policies on affected communities
3.4.6 Engaging with affected communities on
impacts
S3-2
Processes for engaging with
affected communities about
impacts
1.3.2 Interests and views of stakeholders
3.4.5 Taking action and tracking effectiveness of
actions on affected communities
3.4.6 Engaging with affected communities on
impacts
S3-3
Processes to remediate negative
impacts and channels for affected
communities to raise concerns
3.4.7 Remediating negative impacts on affected
communities
4.4 Reporting misconduct and protection of
whistleblowers
S3-4
Taking action on material impacts
on affected communities, and
approaches to managing material
risks and pursuing material
opportunities related to affected
communities, and effectiveness of
those actions
3.1.2 Policies on social matters and respect for
human rights
3.4.5 Taking action and tracking effectiveness of
actions on affected communities
3.4.7 Remediating negative impacts on affected
communities
S3-5
Targets related to managing
material negative impacts,
advancing positive impacts, and
managing material risks and
opportunities
3.4.4 Targets for affected communities
G1
Business conduct
ESRS 2,
GOV-1
The role of the administrative,
supervisory and management
bodies
1.5.1 Role of administrative, management and
supervisory bodies
ESRS 2,
IRO-1
Description of the processes to
identify and assess material
impacts, risks and opportunities
1.4.1 Double materiality assessment process
G1-1
Corporate culture and Business
conduct policies and corporate
culture
4.3 Policies on business conduct and corporate
culture
Animal welfare not
reported as material
4.4 Reporting misconduct and protection of
whistleblowers
4.6.3 Training on business conduct and anti-
corruption and anti-bribery
G1-2
Management of relationships with
suppliers
4.5 Management of relationships with suppliers
Data point 15 reported as
material
G1-3
Prevention and detection of
corruption and bribery
4.6 Prevention and detection of corruption and
bribery
G1-4
Confirmed incidents of corruption
or bribery
4.6.2 Metrics for corruption and bribery
104
5.2 Data points required by EU law
The following table lists data points that derive from other EU legislation. The table can be used
to navigate and find information in this sustainability statement relating to these data points.
Disclosure
requirement
Paragraph
Name of disclosure requirement
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU Climate
Law reference
Section
ESRS 2 GOV-1
21 (d)
Board's gender diversity
Indicator number 13 of Table #1
of Annex 1
Commission Delegated Regulation
(EU) 2020/1816, Annex II
1.5.1 Role of administrative,
management and supervisory bodies
ESRS 2 GOV-1
21 (e)
Percentage of board members who are
independent
Delegated Regulation (EU)
2020/1816, Annex II
1.5.1 Role of administrative,
management and supervisory bodies
ESRS 2 GOV-4
30
Statement on due diligence
Indicator number 10 Table #3 of
Annex 1
1.5.4 Statement on sustainability due
diligence
ESRS 2 SBM-1
40 (d) i
Involvement in activities related to
fossil fuel activities
Indicators number 4 Table #1 of
Annex 1
Article 449a: Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 Table 1: Qualitative information on
Environmental risk and Table 2: Qualitative
information on Social risk
Delegated Regulation (EU)
2020/1816, Annex II
1.3.1 Business model and value chain
ESRS 2 SBM-1
40 (d) ii
Involvement in activities related to
chemical production
Indicator number 9 Table #2 of
Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Not material
ESRS 2 SBM-1
40 (d) iii
Involvement in activities related to
controversial weapons
Indicator number 14 Table #1 of
Annex 1
Delegated Regulation (EU)
2020/1818, Article 12(1) Delegated
Regulation (EU) 2020/1816, Annex II
Not material
ESRS 2 SBM-1
40 (d) iv
Involvement in activities related to
cultivation and production of tobacco
Delegated Regulation (EU)
2020/1818, Article 12(1) Delegated
Regulation (EU) 2020/1816, Annex II
Not material
ESRS E1-1
14
Transition plan to reach climate
neutrality by 2050
Regulation (EU)
2021/1119, Article
2(1)
2.2.6 Transition plan for climate
change mitigation
ESRS E1-1
16 (g)
Undertakings excluded from Paris-
aligned Benchmarks
Article 449a: Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 Template 1: Banking book-Climate
Change transition risk: Credit quality of exposures
by sector, emissions and residual maturity
Delegated Regulation (EU)
2020/1818, Article 12.1 (d) to (g), and
Article 12.2
2.2.6 Transition plan for climate
change mitigation
ESRS E1-4
34
GHG emission reduction targets
Indicator number 4 Table #2 of
Annex 1
Article 449a: Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 Template 3: Banking book – Climate
change transition risk: alignment metrics
Delegated Regulation (EU)
2020/1818, Article 6
2.2.4 Resilience analysis
2.2.6 Transition plan for climate
change mitigation
2.2.5 Targets for climate change
ESRS E1-5
38
Energy consumption from fossil
sources disaggregated by sources (only
high climate impact sectors)
Indicator number 5 Table #1 and
Indicator n. 5 Table #2 of Annex 1
2.2.8 Metrics for climate change
ESRS E1-5
37
Energy consumption and mix
Indicator number 5 Table #1 of
Annex 1
2.2.8 Metrics for climate change
ESRS E1-5
40-43
Energy intensity associated with
activities in high climate impact sectors
Indicator number 6 Table #1 of
Annex 1
2.2.8 Metrics for climate change
ESRS E1-6
44
Gross Scope 1, 2, 3, and Total GHG
emissions
Indicators number 1 and 2 Table
#1 of Annex 1
Article 449a; Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 Template 1: Banking book – Climate
change transition risk: Credit quality of exposures
by sector, emissions and residual maturity
Delegated Regulation (EU)
2020/1818, Article 5(1), 6 and 8(1)
2.2.8 Metrics for climate change
ESRS E1-6
53-55
Gross GHG emissions intensity
Indicators number 3 Table #1 of
Annex 1
Article 449a: Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 Template 3: Banking book – Climate
change transition risk: alignment metrics
Delegated Regulation (EU)
2020/1818, Article 8(1)
2.2.8 Metrics for climate change
105
Disclosure
requirement
Paragraph
Name of disclosure requirement
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU Climate
Law reference
Section
ESRS E1-7
56
GHG removals and carbon credits
Regulation (EU)
2021/1119, Article
2(1)
Not material
ESRS E1-9
66
Exposure of the benchmark portfolio to
climate-related physical risks
Delegated Regulation (EU)
2020/1818, Annex II Delegated
Regulation (EU) 2020/1816, Annex II
Phased-in, not reported in 2024
ESRS E1-9
66 (a); 66(c)
Disaggregation of monetary amounts
by acute and chronic physical risk;
Location of significant assets at
material physical risk
Article 449a: Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 paragraphs 46 and 47; Template 5:
Banking book - Climate change physical risk:
Exposures subject to physical risk.
Phased-in, not reported in 2024
ESRS E1-9
67 (c)
Breakdown of the carrying value of its
real estate assets by energy-efficiency
classes
Article 449a: Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 paragraph 34;Template 2:Banking
book -Climate change transition risk: Loans
collateralised by immovable property - Energy
efficiency of the collateral
Phased-in, not reported in 2024
ESRS E1-9
69
Degree of exposure of the portfolio to
climate-related opportunities
Delegated Regulation (EU)
2020/1818, Annex II
Phased-in, not reported in 2024
ESRS E2-4
28
Amount of each pollutant listed in
Annex II of the E- PRTR Regulation
(European Pollutant Release and
Transfer Register) emitted to air, water
and soil
Indicator number 8 Table #1 of
Annex 1 Indicator number 2 Table
#2 of Annex 1 Indicator number 1
Table #2 of Annex 1 Indicator
number 3 Table #2 of Annex 1
2.3.6 Metrics for pollution
ESRS E3-1
9
Water and marine resources
Indicator number 7 Table #2 of
Annex 1
2.1.2 Policies on environmental
matters
2.4.3 Policies on water
ESRS E3-1
13
Dedicated policy
Indicator number 8 Table 2 of
Annex 1
2.4.3 Policies on water
ESRS E3-1
14
Sustainable oceans and seas
Indicator number 12 Table #2 of
Annex 1
Not material
ESRS E3-4
28 (c)
Total water recycled and reused
Indicator number 6.2 Table #2 of
Annex 1
2.4.6 Metrics for water
ESRS E3-4
29
Total water consumption in m3 per net
revenue on own operations
Indicator number 6.1 Table #2 of
Annex 1
2.4.6 Metrics for water
ESRS 2- SBM 3 - E4
16 (a) i
Indicator number 7 Table #1 of
Annex 1
2.5.2 Material impacts, risks and
opportunities for biodiversity
ESRS 2- SBM 3 - E4
16 (b)
Indicator number 10 Table #2 of
Annex 1
2.5.2 Material impacts, risks and
opportunities for biodiversity
ESRS 2- SBM 3 - E4
16 (c)
Indicator number 14 Table #2 of
Annex 1
2.5.2 Material impacts, risks and
opportunities for biodiversity
ESRS E4-2
24 (b)
Sustainable land/agriculture practices
or policies
Indicator number 11 Table #2 of
Annex 1
2.5.3 Policies on biodiversity
ESRS E4-2
24 (c)
Sustainable oceans/seas practices or
policies
Indicator number 12 Table #2 of
Annex 1
2.5.3 Policies on biodiversity
ESRS E4-2
24 (d)
Policies to address deforestation
Indicator number 15Table #2 of
Annex 1
2.5.3 Policies on biodiversity
ESRS E5-5
37 (d)
Non-recycled waste
Indicator number 13 Table #2 of
Annex 1
2.6.6 Metrics for resource use and
circular economy
ESRS E5-5
39
Hazardous waste and radioactive waste
Indicator number 9 Table #1 of
Annex 1
2.6.6 Metrics for resource use and
circular economy
ESRS 2- SBM3 - S1
14 (f)
Risk of incidents of forced labour
Indicator number 13 Table #3 of
Annex I
3.2.2 Material impacts, risks and
opportunities for own workforce
106
Disclosure
requirement
Paragraph
Name of disclosure requirement
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU Climate
Law reference
Section
ESRS 2- SBM3 - S1
14 (g)
Risk of incidents of child labour
Indicator number 12 Table #3 of
Annex I
3.2.2 Material impacts, risks and
opportunities for own workforce
ESRS S1-1
20
Human rights policy commitments
Indicator number 9 Table #3 and
Indicator number 11 Table #1 of
Annex I
3.1.2 Policies on social matters and
respect for human rights
ESRS S1-1
21
Due diligence policies on issues
addressed by the fundamental
International Labour Organisation
Conventions 1 to 8
Delegated Regulation (EU)
2020/1816, Annex II
3.1.2 Policies on social matters and
respect for human rights
ESRS S1-1
22
Processes and measures for preventing
trafficking in human beings
Indicator number 1 Table #3 of
Annex I
3.1.2 Policies on social matters and
respect for human rights
ESRS S1-1
23
Workplace accident prevention policy
or management system
Indicator number 1 Table #3 of
Annex I
3.1.2 Policies on social matters and
respect for human rights
ESRS S1-3
32 (c)
Grievance/complaints handling
mechanisms
Indicator number 5 Table #3 of
Annex I
3.2.7 Remediating negative impacts
on own workforce and grievance
mechanisms
4.3 Policies on business conduct and
corporate culture
4.4 Reporting misconduct and
protection of whistleblowers
ESRS S1-14
88 (b) and
(c)
Number of fatalities and number and
rate of work-related accidents
Indicator number 2 Table #3 of
Annex I
Delegated Regulation (EU)
2020/1816, Annex II
3.2.5 Taking action and tracking
effectiveness of actions on own
workforce
ESRS S1-14
88 (e)
Number of days lost to injuries,
accidents, fatalities or illness
Indicator number 3 Table #3 of
Annex I
3.2.5 Taking action and tracking
effectiveness of actions on own
workforce
ESRS S1-16
97 (a)
Unadjusted gender pay gap
Indicator number 12 Table #1 of
Annex I
Delegated Regulation (EU)
2020/1816, Annex II
Not material
ESRS S1-16
97 (b)
Excessive CEO pay ratio
Indicator number 8 Table #3 of
Annex I
Not material
ESRS S1-17
103 (a)
Incidents of discrimination
Indicator number 7 Table #3 of
Annex I
Not material
ESRS S1-17
104 (a)
Non-respect of UNGPs on Business and
Human Rights and OECD
Indicator number 10 Table #1 and
Indicator n. 14 Table #3 of Annex
I
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818 Art 12 (1)
3.1.2 Policies on social matters and
respect for human rights
ESRS 2- SBM3 – S2
11 (b)
Significant risk of child labour or forced
labour in the value chain
Indicator number 12 and 13 Table
#3 of Annex I
3.3.2 Material impacts, risks and
opportunities for workers in the
value chain
ESRS S2-1
17
Human rights policy commitments
Indicator number 9 Table #3 and
Indicator n. 11 Table #1 of Annex 1
3.1.2 Policies on social matters and
respect for human rights
3.3.3 Policies on workers in the value
chain
3.3.6 Engaging with value chain
workers on impacts
3.3.7 Remediating negative impacts
on workers in the value chain and
grievance mechanisms
ESRS S2-1
18
Policies related to value chain workers
Indicator number 11 and 4 Table
#3 of Annex 1
3.3.3 Policies on workers in the value
chain
ESRS S2-1
19
Non- respect of UNGPs on Business
and Human Rights principles and OECD
guidelines
Indicator number 10 Table #1 of
Annex 1
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818, Art 12 (1)
3.1.2 Policies on social matters and
respect for human rights
4.5 Management of relationships
with suppliers
107
Disclosure
requirement
Paragraph
Name of disclosure requirement
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU Climate
Law reference
Section
ESRS S2-1
19
Due diligence policies on issues
addressed by the fundamental
International Labour Organisation
Conventions 1 to 8
Delegated Regulation (EU)
2020/1816, Annex II
3.3.3 Policies on workers in the value
chain
ESRS S2-4
36
Human rights issues and incidents
connected to its upstream and
downstream value chain
Indicator number 14 Table #3 of
Annex 1
3.3.7 Remediating negative impacts
on workers in the value chain and
grievance mechanisms
4.5 Management of relationships
with suppliers
ESRS S3-1
16
Human rights policy commitments
Indicator number 9 Table #3 of
Annex 1 and Indicator number 11
Table #1 of Annex 1
3.1.2 Policies on social matters and
respect for human rights
3.4.3 Policies on affected
communities
3.4.6 Engaging with affected
communities on impacts
3.4.7 Remediating negative impacts
on affected communities
ESRS S3-1
17
Non-respect of UNGPs on Business and
Human Rights, ILO principles or and
OECD guidelines
Indicator number 10 Table #1
Annex 1
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818, Art 12 (1)
3.1.2 Policies on social matters and
respect for human rights
ESRS S3-4
36
Human rights issues and incidents
Indicator number 14 Table #3 of
Annex 1
3.1.2 Policies on social matters and
respect for human rights
ESRS S4-1
16
Policies related to consumers and end-
users
Indicator number 9 Table #3 and
Indicator number 11 Table #1 of
Annex 1
Not material
ESRS S4-1
17
Non-respect of UNGPs on Business and
Human Rights and OECD guidelines
Indicator number 10 Table #1 of
Annex 1
Delegated Regulation (EU)
2020/1816, Annex II Delegated
Regulation (EU) 2020/1818, Art 12 (1)
Not material
ESRS S4-4
35
Human rights issues and incidents
Indicator number 14 Table #3 of
Annex 1
Not material
ESRS G1-1
10 (b)
United Nations Convention against
Corruption
Indicator number 15 Table #3 of
Annex 1
4.3 Policies on business conduct and
corporate culture
ESRS G1-1
10 (d)
Protection of whistle-blowers
Indicator number 6 Table #3 of
Annex 1
4.4 Reporting misconduct and
protection of whistleblowers
ESRS G1-4
24 (a)
Fines for violation of anti-corruption
and anti-bribery laws
Indicator number 17 Table #3 of
Annex 1
Delegated Regulation (EU)
2020/1816, Annex II)
4.6.2 Metrics for corruption and
bribery
ESRS G1-4
24 (b)
Standards of anti-corruption and anti-
bribery
Indicator number 16 Table #3 of
Annex 1
4.6 Prevention and detection of
corruption and bribery
108
Consolidated financial statements
Fortum’s consolidated income statement and consolidated cash flow statement include the
Russia segment as discontinued operations in 2023. For further information, see Note 1 Material
accounting policies, Note 2 Critical accounting estimates and judgements and Note 3
Acquisitions, disposals and discontinued operations.
Consolidated income statement
EUR million
Note
2024
2023
Sales
6
5,800
6,711
Other income
48
32
Materials and services
9
-3,295
-3,808
Employee benefits
10
-485
-436
Depreciation and amortisation
6, 17, 18
-379
-359
Other expenses
8
-511
-595
Comparable operating profit
6
1,178
1,544
Items affecting comparability
6, 7
147
118
Operating profit
6
1,325
1,662
Share of profit of associates and joint ventures
6, 19
19
59
Interest expense
-226
-269
Interest income
234
165
Other financial items - net
47
-34
Finance costs - net
11
55
-138
Profit before income tax
1,399
1,583
Income tax expense
12
-239
-69
Net profit from continuing operations
1,160
1,515
Attributable to:
Owners of the parent
1,164
1,514
Non-controlling interests
-4
1
EUR million
Note
2024
2023
Net profit from discontinued operations
3
—
-3,582
Attributable to:
Owners of the parent
—
-3,583
Non-controlling interests
—
1
Net profit, total Fortum
1,160
-2,067
Attributable to:
Owners of the parent
1,164
-2,069
Non-controlling interests
-4
2
   
Earnings per share for profit attributable to the equity owners of
the company (EUR per share)
13
Basic, continuing operations
1.30
1.68
Basic, discontinued operations
—
-3.99
Basic, total Fortum
1.30
-2.31
As Fortum currently has no dilutive instruments outstanding, diluted earnings per share is the
same as basic earnings per share.
EUR million
Note
2024
2023
Comparable operating profit
1,178
1,544
Impairment charges and reversals
-17
0
Capital gains and other related items
183
4
Changes in fair values of derivatives hedging future cash flow
-61
111
Other
43
3
Items affecting comparability
6, 7
147
118
Operating profit
1,325
1,662
See Definitions and reconciliations of key figures.
109
Consolidated statement of
comprehensive income
EUR million
Note
2024
2023
Net profit for the year, total Fortum
1,160
-2,067
Other comprehensive income
Items that may be reclassified to profit or loss in subsequent periods:
Cash flow hedges
Fair value gains/losses
516
2,185
Transfers to income statement
66
150
Transfers to inventory/property, plant and equipment
-1
-3
Deferred taxes
-116
-473
Net investment hedges
Fair value gains/losses
4
-16
Deferred taxes
-1
3
Exchange differences on translating foreign operations
4.3
13
-43
Share of other comprehensive income of associates and joint ventures
19
1
-17
483
1,788
Items that will not be reclassified to profit or loss in subsequent periods:
Remeasurement of investments
1
1
Actuarial gains/losses on defined benefit plans
31
15
-9
Actuarial gains/losses on defined benefit plans in associates and joint
ventures
0
-3
16
-11
Other comprehensive income/expense from continuing operations, net of
deferred taxes
499
1,777
Recycling of FX including net investment hedges related to Russia 1)
0
1,940
Other comprehensive income/expense from discontinued operations, net
of deferred taxes
0
-69
Total comprehensive income/expense
1,659
1,581
Total comprehensive income/expense for total Fortum attributable to:
Owners of the parent
1,663
1,580
Non-controlling interests
-4
1
1,659
1,581
1)The deconsolidation of Russian operations in 2023 resulted in the recycling of EUR 1.9 billion negative cumulative
translation differences from equity to the income statement. The recycling did not have any impact on total equity.
Other comprehensive income (OCI) includes items of income and expense that are recognised in
equity and not recognised in the consolidated income statement. They include unrealised items,
such as fair value gains and losses on financial instruments hedging future cash flows. These
items will be realised in the Consolidated income statement when the underlying hedged items
are recognised. OCI also includes gains and losses on fair valuation of other investments,
actuarial gains and losses from defined benefit plans, items on comprehensive income in
associated companies and translation differences.
Fair valuation of cash flow hedges mainly relates to fair valuation of derivatives, such as futures
and forwards, hedging commodity sales price for future transactions, where hedge accounting is
applied. When commodity market price is higher (lower) than the hedging price, the impact on
equity is negative (positive).
Exchange differences on translating foreign operations include translation differences from
translation of foreign entities, mainly SEK, NOK and PLN.
110
Consolidated balance sheet
EUR million
Note
31 Dec 2024
31 Dec 2023
ASSETS
Non-current assets
Intangible assets
17
549
643
Property, plant and equipment and right-of-use assets
18
6,070
6,612
Participations in associates and joint ventures
19
1,260
1,059
Share in the State Nuclear Waste Management Fund
29
1,117
1,058
Other non-current assets
21
238
201
Deferred tax assets
28
845
958
Derivative financial instruments
15, 16
266
216
Long-term interest-bearing receivables
22
431
644
Total non-current assets
10,777
11,392
Current assets
Inventories
23
420
452
Derivative financial instruments
15, 16
379
389
Short-term interest-bearing receivables
22
283
389
Income tax receivables
28
101
59
Margin receivables
27
205
590
Trade and other receivables
24
1,007
1,286
Liquid funds
25
4,136
4,183
Total current assets
6,530
7,347
Total assets
17,307
18,739
EUR million
Note
31 Dec 2024
31 Dec 2023
EQUITY
Equity attributable to owners of the parent
Share capital
26
3,046
3,046
Share premium
73
73
Retained earnings
5,770
5,592
Other equity components
186
-273
Total
9,074
8,438
Non-controlling interests
79
60
Total equity
9,154
8,499
LIABILITIES
Non-current liabilities
Interest-bearing liabilities
27
4,336
4,573
Derivative financial instruments
15, 16
221
216
Deferred tax liabilities
28
386
428
Nuclear provisions
29
1,117
1,058
Other provisions
30
81
125
Pension obligations, net
31
12
10
Other non-current liabilities
32
123
122
Total non-current liabilities
6,276
6,532
Current liabilities
Interest-bearing liabilities
27
492
1,337
Derivative financial instruments
15, 16
333
1,057
Other provisions
30
3
2
Margin liabilities
27
93
131
Trade and other payables
33
956
1,181
Total current liabilities
1,877
3,708
Total liabilities
8,153
10,240
  
Total equity and liabilities
17,307
18,739
111
Consolidated statement of changes in total equity
  Retained earnings
    Other equity components
EUR million
Note
Share capital
Share
premium
Retained
earnings
Translation
of foreign
operations
Cash flow
hedges
Other
OCI
items
OCI items
associates
and joint
ventures
Owners of
the parent
Non-
controlling
interests
Total equity
Total equity 1 January 2024
3,046
73
6,618
-1,026
-337
-14
79
8,438
60
8,499
Net profit, total Fortum
1,164
1,164
-4
1,160
Translation differences
15
-1
0
-2
13
0
13
Other comprehensive income
466
19
1
486
0
486
Total comprehensive income for the year
1,164
15
465
19
0
1,663
-4
1,659
Cash dividend
13
-1,032
-1,032
0
-1,032
Deconsolidation of subsidiary companies
0
-2
-2
Transactions with non-controlling interests
0
25
25
Other 1)
30
-25
5
0
5
Total equity 31 December 2024
3,046
73
6,780
-1,010
127
5
53
9,074
79
9,154
Total equity 1 January 2023
3,046
73
9,499
-3,031
-2,182
172
93
7,670
67
7,737
Net profit, total Fortum 2)
-2,069
-2,069
2
-2,067
Translation differences
-36
-6
0
0
-43
0
-43
Translation differences, recycled to Income statement
2,106
-166
1,940
1,940
Other comprehensive income
1,860
-21
-19
1,820
0
1,820
OCI related to discontinued operations
-63
-9
0
5
-68
-2
-69
Total comprehensive income for the year
-2,069
2,006
1,844
-186
-14
1,580
1
1,581
Cash dividend
13
-817
-817
0
-817
Deconsolidation of subsidiary companies
0
-22
-22
Transactions with non-controlling interests
0
15
15
Other
5
0
5
0
5
Total equity 31 December 2023
3,046
73
6,618
-1,026
-337
-14
79
8,438
60
8,499
1)Including a restatement related to the hedge accounting of interest rate derivatives hedging the interest of the subordinated loans in Fortum's joint venture Teollisuuden Voima Oyj (TVO).
2)Of which EUR -1,940 million is related to the recycling of the negative cumulative translation differences and related net investment hedges from Russian operations, to the income statement.
112
Translation differences
Translation of financial information from subsidiaries in foreign currency is done using the
average rate for the income statement and the end rate for the balance sheet. The exchange
rate differences arising from translation to EUR are recognised in equity (mainly from SEK, NOK
and PLN).
For information regarding exchange rates used, see Note 1 Material accounting policies. For
information about translation exposure see Note 4.3 Interest rate risk and currency risk.
Equity impact from recycling of cumulative translation
difference and related hedges relating to Russia in 2023
The deconsolidation of Russian operations in April 2023 resulted in the recycling of EUR
1.9 billion negative cumulative translation differences from translation of foreign operations
from equity to the income statement. The recycling did not have any impact on total equity. The
cumulative translation differences are due to the significant weakening of the Russian rouble
since the acquisition of the Russian operations in 2008.
EUR million
Retained
earnings
Translation
of foreign
operations
Other
OCI
items
Owners
of the
parent
Impact included in Net profit 2023
-1,940
-1,940
Impact to other equity items
2,106
-166
1,940
Total equity impact 2023
-1,940
2,106
-166
0
Cash flow hedges
The impact on equity attributable to owners of the parent from fair valuation of cash flow
hedges mainly relates to fair valuation of commodity derivatives, such as futures and forwards,
hedging commodity sales price of future transactions, where hedge accounting is applied. When
commodity market price is higher (lower) than the hedging price, the impact on equity is
negative (positive).
Cash dividends
A dividend for 2023 of EUR 1.15 per share, amounting to a total of EUR 1,032 million, was decided
in the Annual General Meeting on 25 March 2024. The dividend was paid in two instalments. The
first dividend instalment of EUR 0.58 per share was paid on 5 April 2024, amounting to a total of
EUR 520 million. The second dividend instalment of EUR 0.57 was paid on 9 October 2024,
amounting to a total of EUR 511 million.
A dividend for 2022 of EUR 0.91 per share, amounting to a total of EUR 817 million, was decided
in the Annual General Meeting on 13 April 2023. The dividend was paid in two instalments.
See Note 13 Earnings and dividend per share.
Comparable non-controlling interests
EUR million
2024
2023
Non-controlling interests
4
-1
Adjustments to non-controlling interests
3
5
Comparable non-controlling interests
7
4
113
Consolidated cash flow statement
EUR million
Note
2024
2023
Cash flow from operating activities
Net profit from continuing operations
1,160
1,515
Adjustments:
Income tax expense
239
69
Finance costs - net
-55
138
Share of profit/loss of associates and joint ventures
19
-19
-59
Depreciation and amortisation
6
379
359
Operating profit before depreciations (EBITDA)
1,704
2,021
Items affecting comparability
6, 7
-147
-118
Comparable EBITDA
1,556
1,903
Non-cash and other items
-89
129
Interest received
236
153
Interest paid
-225
-228
Dividends received
14
16
Income taxes paid
-196
-454
Funds from operations
1,297
1,519
Change in working capital
95
191
Net cash from operating activities, continuing operations
1,392
1,710
Cash flow from investing activities, continuing operations
Capital expenditures
17, 18
-472
-576
Acquisitions of shares
3
-33
-53
Proceeds from sales of property, plant and equipment
3
12
Divestments of shares and capital returns
3
764
5
Shareholder loans to associated companies and joint ventures
22
-26
-30
Change in margin receivables
386
2,024
Change in other interest-bearing receivables
22
-19
52
Net cash from/used in investing activities, continuing operations
604
1,433
EUR million
Note
2024
2023
Cash flow before financing activities, continuing operations
1,995
3,143
Cash flow from financing activities, continuing operations
Proceeds from long-term liabilities
27
5
1,755
Payments of long-term liabilities 1)
27
-944
-1,620
Change in short-term liabilities
27
-37
-1,757
Dividends paid to the owners of the parent
13
-1,032
-817
Change in margin liabilities
-38
-221
Other financing items 
2
19
Net cash from/used in financing activities, continuing operations
-2,043
-2,640
Net increase(+)/decrease(-) in liquid funds, continuing operations
-47
503
Cash flow from discontinued operations
Net cash from/used in operating activities, discontinued operations
—
109
Net cash from/used in investing activities, discontinued operations 2)
—
-333
Net cash from/used in financing activities, discontinued operations
—
21
Net increase(+)/decrease(-) in liquid funds, discontinued operations
3.3
—
-202
Cash flow, total Fortum
Total net cash from/used in operating activities
1,392
1,819
Total net cash from/used in investing activities
604
1,095
Total net cash from/used in financing activities
-2,043
-2,614
Net increase(+)/decrease(-) in liquid funds, total Fortum
-47
301
Liquid funds at the beginning of the period
25
4,183
3,919
Foreign exchange differences and expected credit loss allowance in liquid
funds
0
-36
Liquid funds at the end of the period
24
4,136
4,183
1) The green loan of EUR 300 million under the Green Finance Framework partly refinanced EUR 700 million bank loan and
was netted without cash payments. Loan was partly prepaid and EUR 400 million is impacting the cash flow in 2024.
2)Cash flow from investing activities for discontinued operations in 2023 includes Russia related cash flows netted with
liquid funds of EUR 284 million lost through the seizure of the Russian assets.
See Note 14 Additional cash flow information.
114
Notes to the consolidated financial
statements
1 Material accounting policies
1.1 Basic information
Fortum Corporation (the company) is a Finnish public limited liability company domiciled in Espoo,
Finland. Fortum’s shares are traded on Nasdaq Helsinki. Fortum is a Nordic energy company. Our
purpose is to power a world where people, businesses and nature thrive together. We are one of
the cleanest energy producers in Europe and our actions are guided by our ambitious
environmental targets. We generate and deliver clean energy reliably and help industries to
decarbonise their processes and grow. Our core operations in the Nordics comprise of efficient,
CO2-free power generation as well as reliable supply of electricity and district heat to private and
business customers.
These financial statements were approved by the Board of Directors on 17 February 2025. The
Financial Statements are also published in accordance with the European Single Electronic
Format (ESEF) reporting requirement. The audit firm, Deloitte Oy, has provided an independent
auditor’s reasonable assurance report on Fortum’s ESEF Financial Statements in accordance
with ISAE 3000. The ESEF report is available at www.fortum.com/about-us/investors/reports-
and-presentations.
1.2 Basis for preparation
The consolidated financial statements of Fortum Group for the year ended 31 December 2024
have been prepared in accordance with International Financial Reporting Standards (IFRS) and
IFRIC Interpretations as adopted by the European Union. The notes to the consolidated financial
statements also comply with the supplementing requirements of the Finnish accounting and
company legislation.
The consolidated financial statements have been prepared under the historical cost convention,
except for financial assets and financial liabilities (including derivative instruments) that are
valued at fair value through profit and loss or other comprehensive income.
The figures in the consolidated financial statements have been rounded and consequently the
sum of individual figures may deviate from the sum presented. Key figures have been calculated
using exact figures. Unless otherwise indicated, all amounts are presented in millions of euro
(EUR million).
1.3 Principles for consolidation
These consolidated financial statements comprise of the parent company, subsidiaries, joint
ventures and associated companies.
Fortum Group was formed in 1998 by using the pooling-of-interests method for consolidating
Fortum Power and Heat Oy and Fortum Oil and Gas Oy (the latter demerged to Fortum Oil Oy
and Fortum Heat and Gas Oy 1 May 2004). In 2005 Fortum Oil Oy (current Neste Oyj) was
separated from Fortum by distributing 85% of its shares to Fortum’s shareholders and by selling
the remaining 15%. This means that the acquisition cost of Fortum Power and Heat Oy and
Fortum Heat and Gas Oy has been eliminated against the equity of the companies. The
difference has been entered as a decrease in shareholders’ equity.
1.3.1 Subsidiaries
Subsidiaries are defined as companies over which Fortum has control. Control exists when
Fortum is exposed to, or has rights to, variable returns from its involvement with the entity and
has the ability to affect those returns through its power over the entity. See Note 3 Acquisitions,
disposals and discontinued operations.
Intercompany transactions, balances and unrealised gains on transactions between Group
companies are eliminated. Unrealised losses are also eliminated unless the transaction provides
evidence of an impairment of the asset transferred.
Where necessary, subsidiaries’ accounting policies have been changed to ensure consistency
with the policies the Group has adopted.
Fortum Group subsidiaries are disclosed in Note 40 Group companies by segment. Group
holding % for companies owned via subsidiaries is based on the Fortum Corporation ownership
% in the direct subsidiary times the ownership % of the direct subsidiary in the indirect
subsidiary/associate/joint venture.
1.3.2 Associates
Associated companies are entities over which the Group has significant influence but not
control, generally accompanying a shareholding of between 20% and 50% of the voting rights.
The Group’s interests in associated companies are accounted for using the equity method of
accounting. See Note 19 Participations in associated companies and joint ventures.
1.3.3 Joint ventures
Joint ventures are arrangements in which the Group has joint control. Joint ventures are
accounted for using the equity method of accounting. See Note 19 Participations in associated
companies and joint ventures.
115
1.4 Measures for performance
According to the ESMA Guidelines on Alternative Performance Measures, an Alternative
Performance Measure (APM) is understood as a financial measure of historical or future financial
performance, financial position, or cash flows, other than a financial measure defined or
specified in the applicable financial reporting framework.
Fortum uses APMs, such as Comparable operating profit and Comparable EBITDA in the
financial target setting and forecasting, management's follow-up of financial performance of
segments and the Group, as well as for the allocation of resources in the Group's performance
management process. Items affecting comparability are excluded from Comparable operating
profit and Comparable EBITDA and disclosed separately in Fortum's consolidated income
statement to support the transparency of underlying business performance when comparing
results between periods.
Items classified as Items affecting comparability include accounting effects from valuation
according to IFRS not arising from the performance of business operations. Such items include
fair value changes of financial derivatives hedging future cash flows where hedge accounting is
not applied and fair value changes of physical contracts accounted for as derivatives according
to IFRS 9, Financial Instruments.
Further, business performance of operations cannot be compared from one period to another
without adjusting for one-time items relating to capital gains and other related items, such as
transaction costs arising from acquisitions; impacts from acquisition accounting; significant
impairments and reversals of impairments as well as other miscellaneous non-operating items,
such as restructuring and cost management expenses. Such items are also treated as Items
affecting comparability.
According to IFRS 3, Business Combinations, transaction costs related to the acquisitions of
subsidiary shares are recognised in the consolidated income statement. Such costs are
presented in Capital gains and other within Items affecting comparability.
Following the deconsolidation of Russia in 2023, additional APMs excluding Russia are no longer
presented, except for the Financial net debt comparative period in note 14 Additional cash flow
information.
See Note 7 Comparable operating profit and comparable net profit. Definitions are presented in
the section Definitions and reconciliations of key figures.
Fortum’s long-term financial target for capital structure measure is Financial net debt to
comparable EBITDA. See Note 5 Capital risk management.
1.5 Foreign currency transactions and translation
1.5.1 Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using
the currency of the primary economic environment in which the entity operates (the functional
currency). The consolidated financial statements are presented in euros, which is the company’s
functional and presentation currency.
1.5.2 Transactions and balances
Transactions denominated in foreign currencies are translated using the exchange rate at the
date of transaction. Receivables and liabilities denominated in foreign currencies outstanding on
the balance sheet date are translated using the balance sheet date exchange rate. Exchange
rate differences are recognised in the consolidated income statement. Net exchange
differences relating to financing components are recognised in the consolidated income
statement, except when deferred to equity as qualifying cash flow hedges. Translation
differences on financial assets through other comprehensive income are included in Other
equity components in equity.
1.5.3 Group companies
Income statement and cash flow statement of subsidiaries, whose functional currencies are not
euro, are translated into euro using the average exchange rates; whereas the balance sheets of
such subsidiaries are translated into euro using the closing exchange rates on the balance sheet
date. On consolidation, exchange rate differences arising from the translation of net investment
in foreign entities and currency instruments designated as hedges for such investments, are
taken to equity. When a foreign operation is sold, such exchange differences are recognised in
the consolidated income statement as part of the gain or loss on sale. Goodwill and fair value
adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of
the foreign entity and translated at closing rate.
The balance sheet date rate is based on the exchange rate published by the European Central
Bank for the closing date. The average exchange rate is calculated as an average of daily closing
rates from the European Central Bank.
116
Key exchange rates used in consolidated financial statements
Average rate
Balance sheet date rate
2024
2023
2024
2023
Norway (NOK)
11.6290
11.4248
11.7950
11.2405
Poland (PLN)
4.3058
4.5420
4.2750
4.3395
Sweden (SEK)
11.4325
11.4788
11.4590
11.0960
1.5.4 Associates and joint ventures
Associates and joint ventures, whose measurement and reporting currencies are not euro, are
translated into the Group reporting currency using the same principles as for subsidiaries.
1.6 Other material accounting policies
Fortum describes other material accounting policies in conjunction with the relevant disclosure
information. The table below lists material accounting policies and the financial statement note
where they are presented, as well as the relevant IFRS standard.
Accounting policy
Note
IFRS standard
Subsidiaries
3 Acquisitions, disposals and
discontinued operations
IFRS 3, IFRS 10
Discontinued operations
3 Acquisitions, disposals and
discontinued operations
IFRS 5
Financial instruments
4 Financial risk management
15 Financial assets and liabilities by
categories
16 Financial assets and liabilities by fair
value hierarchy
IAS 32, IFRS 7, IFRS 9, IFRS 13
Segment reporting
6 Segment reporting
IFRS 8, IFRS 15
Revenue recognition
6 Segment reporting
24 Trade and other receivables
IFRS 15
Share-based payments
10 Employee benefits and Board
remuneration
IFRS 2
Earnings per share
13 Earnings and dividend per share
IAS 33
Other shares and participations
15 Financial assets and liabilities by
categories
21 Other non-current assets
IAS 32, IAS 36, IFRS 9
Fair value measurement
16 Financial assets and liabilities by fair
value hierarchy
IFRS 13
Intangible assets
17 Intangible assets
IAS 38
Tangible assets
18 Property, plant and equipment and
right-of-use assets
IAS 16
Joint arrangements
19 Participations in associated
companies and joint ventures
IFRS 11, IAS 28, IFRS 12
Investments in associates
19 Participations in associated
companies and joint ventures
IAS 28, IFRS 12
Impairment testing
20 Impairment testing
IAS 36
Inventories
23 Inventories
IAS 2
Trade receivables
24 Trade and other receivables
IFRS 9
Liquid funds
25 Liquid funds
IAS 7
Borrowings
27 Interest-bearing liabilities
IFRS 9
Income taxes
28 Income taxes on the balance sheet
IAS 12
Assets and liabilities related to
decommissioning of nuclear power
plants and disposal of spent fuel
29 Nuclear-related assets and liabilities
IFRIC 5
Provisions
30 Other provisions
IAS 37
Pensions and similar obligations
31 Pension obligations
IAS 19
Leases
34 Leases
IFRS 16
Contingent liabilities
36 Pledged assets and contingent
liabilities
IAS 37
Events after the balance sheet date
39 Events after the balance sheet date
IAS 1
117
1.7 Discontinued operations
Russia in 2023
Control over Fortum’s Russian operations was lost on 25 April 2023 following the Russian
Presidential decree No. 302, which enables the authorities to introduce temporary asset
management to assets owned by certain foreign entities in Russia, and the subsequent
nomination of the new external CEO to PAO Fortum. Consequently, in 2023 Fortum’s Russia
segment was deconsolidated, and classified as discontinued operations as required by IFRS 5
Non-current assets held for sale and discontinued operations. Fortum has not had access to
financial or non-financial information from the Russia segment since the first quarter 2023
reporting, and therefore information for the deconsolidation is based on the 31 March 2023
balance sheet.
The deconsolidation in 2023 resulted in EUR 3.6 billion one-time, non-cash negative effect. The
amount consists of the full write-down of the Russian assets of EUR 1.7 billion, and EUR 1.9 billion
negative cumulative translation differences previously recognised in equity. These cumulative
translation differences are recycled from equity to profit and loss on deconsolidation according
to IFRS. The recycling did not have any impact on total equity.
See also Note 2 Critical accounting estimates and judgements and Note 3.3 Discontinued
operations.
1.8 New accounting standards, amendments and
interpretations
New accounting standards, amendments and interpretations effective from 1 January 2024 did
not have a material impact on Fortum's consolidated financial statements.
In April 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements, which
replaces IAS 1 Presentation of Financial Statements. IFRS 18 introduces new requirements that
target to increase comparability of the financial performance of similar entities and provide
more relevant information and transparency to users. IFRS 18 will change the financial statement
presentation and disclosures, but will not impact the recognition or measurement of items. The
effective date is 1 January 2027, subject to EU endorsement. Fortum is currently analysing the
impact of the new standard.
Other new accounting standards, amendments and interpretations issued by the balance sheet
date and effective from 1 January 2025 or later are not expected to have a material impact on
Fortum’s consolidated financial statements.
118
2 Critical accounting estimates and judgements
The preparation of IFRS consolidated financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities, the
disclosure of contingent assets and liabilities existing at the balance sheet date, as well as the
reported amounts of revenues and expenses during the reporting period.
Estimates and judgements are continually evaluated and are based on historical experience and
other factors, including expectations of future events that are believed to be reasonable under
the circumstances based on, for instance, the analysis of energy policy and the regulatory
environment. These factors can affect the carrying amounts of assets and liabilities, the amount
and timing of earnings recognition, as well as cash flows.
The table below lists the areas where management’s accounting estimates and judgements are
most critical to reported results and financial position; as well as where to find more information
on the areas of critical accounting estimate and judgement.
Critical accounting estimates and judgements
Note
Judgement used in determining the valuation of certain
financial instruments
15 Financial assets and liabilities by categories
16 Financial assets and liabilities by fair value hierarchy
Assumptions used when determining loss of control on
disposal of subsidiaries
2 Critical accounting estimates and judgements
3 Acquisitions, disposals and discontinued operations
Assigned values and useful lives determined for
intangible assets and property, plant and equipment
acquired in a business combination
17 Intangible assets
18 Property, plant and equipment and right-of-use
assets
Assumptions related to impairment testing of property,
plant and equipment and intangible assets as well as
associated companies and joint ventures
17 Intangible assets
18 Property, plant and equipment and right-of-use
assets
19 Participations in associated companies and joint
ventures
20 Impairment testing
Judgement used when assessing the nature of Fortum's
interest in its investees, when considering the
classification of Fortum's joint arrangements, as well as
commitments arising from these arrangements
19 Participations in associated companies and joint
ventures
Estimates used for the recognition and measurement of
deferred tax assets
28 Income taxes on the balance sheet
Assumptions made to determine long-term cash flow
forecasts of estimated costs for provision related to
nuclear production
29 Nuclear-related assets and liabilities
Assumptions made when estimating provisions
30 Other provisions
Assumptions used to determine future pension
obligations
31 Pension obligations
2.1 Russia’s invasion of Ukraine
Russia’s attack on Ukraine in February 2022 has severely impacted Fortum’s current and future
businesses. The main impacts on Fortum’s 2023 financials include the events that led to the
deconsolidation of Fortum’s Russia segment in 2023, as well as the divestment of Uniper to the
German State in 2022.
2.1.1 Deconsolidation of Russia segment in 2023
On 25 April 2023, Fortum’s subsidiary PAO Fortum (Fortum JSC) was put under asset
management in accordance with a Russian Presidential decree No. 302 which introduced a
‘temporary’ asset management to assets owned by certain foreign entities in Russia. On 26 April
2023, this caused the forced replacement of the company’s CEO and the Russian authorities
seized control of Fortum’s assets in Russia. The decree and the subsequent forced nomination of
the external CEO to PAO Fortum triggered a control assessment as required by IFRS 10
Consolidated financial statements. Based on the assessment, Fortum’s rights are no longer
substantive as it does not have practical ability to use control over its Russian operations.
Consequently, control was lost on 25 April 2023 and the Russia segment was deconsolidated in
2023. See also Note 3.3 Discontinued operations.
2.1.2 Deferred tax asset
Deferred tax assets at 31 December 2024 include EUR 780 million (2023: EUR 829 million)
recognised in 2023 and 2022 relating to one-time tax impacts realised in Ireland, which resulted
in increased deferred tax assets on tax loss carry forward. The deferred tax asset mainly relates
to impacts caused by the Uniper divestment and Russia deconsolidation, and the utilisation is
subject to future taxable income in Ireland. See Note 28 Income taxes on the balance sheet.
2.2 Macroeconomic environment
In 2024, the power market prices continued volatile. In general, price volatility is expected to
continue with the increasing share of intermittent generation and the occasionally re-
emerging concerns over security of energy supply. The increased geopolitical uncertainty
and fears of escalation of other conflicts can also impact power and other commodity
prices and volatility.
The market volatility and uncertainty increases the estimation uncertainty and management
judgement especially for the cash flows and discount rates applied in impairment testing of non-
current assets, discounting of the provisions and obligations as well as valuation of deferred tax
assets and expected credit losses.
Fortum’s liquidity and refinancing risks are primarily related to the need to finance its business
operations, including margining payments and collaterals issued to enable hedging of
commodity market risk exposures. Higher and more volatile commodity prices increase the net
119
margining payments toward clearing houses and clearing banks. Fortum mitigates this risk by
entering into over-the-counter (OTC) derivatives contracts directly with bilateral counterparties
without margining requirements. Consequently, credit exposure from hedges with OTC
counterparties has increased.
2.3 Climate-related matters
Fortum’s power generation in the Nordic countries is mainly based on low-carbon hydro and
nuclear power. A minor share of Fortum’s power generation is currently based on onshore wind.
Fortum also has production and distribution of district heating and cooling in Finland and
Poland. These businesses are complemented by the electricity and gas retail business in Poland
and the battery recycling business. Heat is mainly produced at energy-efficient combined heat
and power (CHP) plants. In addition, Fortum is large electricity retailer in the Nordics.
Main climate-related risks facing Fortum include transition risks, such as changes in legislation,
impact on supply or demand, and reputation; as well as physical risks, such as those arising from
extreme weather conditions or changes in long-term weather patterns. For instance, floods will
impact the optimal operation of hydro power plants. Fortum is systematically reducing risks
related to dam safety through long-term investments to secure the discharge capacity in
extreme flood situations. Legislation risk relates to both EU and national climate-related policies
and regulation.
The impacts of climate change are reflected in the consolidated financial statements generally
when specific actions, such as new investments to transition to low-carbon production or to
mitigate climate change have been approved; or when climate-related risks have materialised.
Fortum’s transition plan for climate change includes actions to reduce scope 1, 2 and 3
emissions and to increase low-carbon power generation capacity.
The biggest GHG emission reduction lever for Scope 1 emissions is the exit of coal use in heat
and power production by the end of 2027. See Note 18 Property, plant and equipment and right-
of-use assets for impact to consolidated financial statements. The main lever for reducing Scope
2 emissions is the purchasing of renewable or nuclear-based electricity for own use and Scope 3
emissions will be reduced through supply-chain decarbonisation. Scope 2 and Scope 3 related
actions have not had a material impact on consolidated financial statements in 2024.
To increase low-carbon power generation capacity, Fortum targets to build a ready-to-build
pipeline of new wind and solar plants and to modernise existing nuclear and hydropower plants.
These investments are capitalised in property, plant and equipment. See Note 18 Property, plant
and equipment and right-of-use assets.
Climate-related risks have not had a material impact on consolidated financial statements
in 2024.
The following financial statement items are most relevant when considering the impact of
climate-related matters:
• Impairment testing: approved actions towards Fortum’s climate risks and targets are reflected
in the assumptions used in the impairment testing, as appropriate. See Note 20 Impairment
testing.
• Property, plant and equipment: economic lives and book values of property, plant and
equipment reflect approved actions towards Fortum’s climate-related risks and targets. See
Note 18 Property, plant and equipment and right-of-use assets.
• Nuclear provisions include future costs for decommissioning nuclear power plants, and the
appropriate treatment of spent fuel. See Note 29 Nuclear-related assets and liabilities.
For accounting treatment applied to emission allowances and green certificates, see Note 23
Inventories.
120
3 Acquisitions, disposals and discontinued operations
ACCOUNTING POLICIES
SUBSIDIARIES
Acquisition of subsidiaries are accounted for using the acquisition method. The consideration
transferred is measured as the aggregate of acquisition date fair values of assets transferred
and liabilities assumed. Identifiable assets acquired and liabilities assumed are measured
initially at acquisition date fair values, irrespective of the extent of any minority interest. The
excess of the cost of acquisition over the fair value of the identifiable net assets acquired is
recorded as goodwill.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group
and are no longer consolidated from the date that control ceases. See Note 1.3 Principles for
consolidation.
DISCONTINUED OPERATIONS
A discontinued operation is a component of the Group that has been disposed of or is
classified as held for sale, and that represents a separate major line of business or
geographical area of operations or is part of a single co-ordinated plan to dispose of such a line
of business or area of operations. The results of discontinued operations are presented
separately in the consolidated income statement.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS: ASSUMPTIONS
REGARDING LOSS OF CONTROL
Fortum reassesses if it controls its subsidiaries if facts and circumstances indicate that there
are changes to the three elements of control: power over the investee, exposure or rights to
variable returns, or the ability to use power over to affect the amount of returns. Therefore, the
date on which control over a subsidiary is lost may require management judgment. With
regards to the deconsolidation of the Russia segment, management has used judgment in
concluding that the Russian Presidential decree issued on 25 April 2023 resulted in loss of
control. See also Note 2 Critical accounting estimates and judgements.
3.1 Acquisitions
EUR million
2024
2023
Gross investments in shares in subsidiary companies
0
22
Gross investments in shares in associated companies and joint ventures
19
12
Gross investments in other shares
14
19
Total
33
53
Acquisitions during 2024
There were no material acquisitions in 2024.
Acquisitions during 2023
On 31 August 2023, Fortum acquired the Swedish electricity solutions provider Telge Energi AB
from Telge AB. The total consideration for the entire shareholding in Telge Energi on a cash and
debt-free basis was approximately SEK 450 million (EUR 39 million). The purchase price, net of
cash acquired and other adjustments, was EUR 22 million. Telge Energi AB is included in the
Consumer Solutions segment.
3.2 Disposals
EUR million
2024
2023
Gross divestments of shares in subsidiary companies
747
1
Gross divestments of shares in associated companies and joint ventures
38
0
Gross divestments of other investments
0
3
Total
785
4
3.2.1 Disposals of subsidiary companies
Disposals during 2024
On 31 December 2024, Fortum completed the divestment of its turbine and generator services
to industrial technical services provider Elcoline Group Oy. The transaction did not have a
material financial impact on Fortum Group’s result.
On 29 November 2024, Fortum completed the divestment of its recycling and waste business to
Summa Equity. Fortum recorded a tax-exempt capital gain of EUR 176 million. The gain is
reported as Items Affecting Comparability in the Other Operations segment’s results in 2024.
The net cash flow received from the transaction was approximately EUR 720 million.
121
Disposals during 2023
There were no material disposals in 2023.
Control over Fortum’s Russian operations was lost on 25 April 2023 following the Russian
Presidential decree No. 302. Consequently, in 2023 Fortum’s Russia segment was
deconsolidated, and classified as discontinued operations. Fortum has not had access to
financial or non-financial information from the Russia segment since the first quarter 2023
reporting, and therefore information for the deconsolidation is based on the 31 March 2023
balance sheet. See Note 3.3 Discontinued operations.
Divestments of shares in subsidiaries - Impact on financial position
The table below does not include the impact of deconsolidation of Russia in 2023, which is
presented separately in Note 3.3.2 Impact from the deconsolidation of Russia.
EUR million
2024
2023
Gross divestments of shares in subsidiary companies
747
1
Intangible assets and property, plant and equipment
660
0
Other non-current and current assets
143
0
Liquid funds
31
0
Interest-bearing liabilities
-26
0
Deferred taxes
-75
0
Other liabilities and provisions
-158
0
Net assets divested
575
0
Result from transaction
182
1
3.2.2 Other disposals
On 23 September 2024, Fortum announced that it had signed an agreement to sell its 37.4%
ownership in Chempolis Oy, including all Fortum’s biobased solutions businesses, and the
shares in the holding company owning 40.3% in Assam Bio Ethanol Pvt Ltd in India to AM Green
Technology & Solutions B.V. The transaction did not have any material financial impact on
Fortum Group’s result.
On 28 June 2024, Fortum concluded the sale of the remaining 43.75% share of its Indian solar
power portfolio to Gentari Renewables India Pte. Ltd., a subsidiary of clean energy solutions
provider Gentari Sdn. Bhd. The portfolio comprises four solar power plants in India with the total
capacity of 185 MW. A tax-exempt capital gain of EUR 16 million was recorded in comparable
operating profit in Generation segment’s 2024 results. The total proceeds received was EUR 33
million.
There were no material disposals in 2023.
3.3 Discontinued operations
The Russia segment was classified as discontinued operations in 2023. See also Note 1 Material
accounting policies and Note 2 Critical accounting estimates and judgements. Financial
performance and cash flow information for the discontinued operations is presented until 31
March 2023 for the Russia segment.
3.3.1 Financial performance
The result from discontinued operations is disclosed on one line on the face of the consolidated
income statement. The following table presents breakdown of income statement information for
discontinued operations. Discontinued operations include the Russia segment in 2023. The
deconsolidation of Russian operations in 2023 resulted in EUR 3.6 billion one-time, non-cash
negative effect. The effects of eliminations from internal sales and purchases have been
included in the discontinued operations. The net financial costs are based on the historical
financial costs in the separate companies.
122
EUR million
2023
Sales
287
Other income
6
Materials and services
-148
Employee benefits
-20
Depreciation and amortisation
-23
Other expenses
-15
Comparable operating profit
86
Deconsolidation effect
-3,608
Items affecting comparability
0
Operating profit
-3,521
Share of profit/loss of associates and joint ventures
26
Finance costs - net
-88
Profit before income tax
-3,584
Income tax expense
2
Net profit from discontinued operations
-3,582
Attributable to:
Owners of the parent
-3,583
Non-controlling interests
1
Earnings per share, discontinued operations, EUR
-3.99
Comparable net profit from discontinued operations
34
Comparable earnings per share, discontinued operations, EUR
0.04
.
3.3.2 Impact from the deconsolidation of Russia
The deconsolidation of Russian operations in 2023 resulted in EUR 3.6 billion one-time, non-cash
negative effect. The amount consists of the full write-down of the Russian assets of EUR 1.7
billion, and EUR 1.9 billion negative cumulative translation differences previously recognised in
equity. These cumulative translation differences are recycled from equity to profit and loss on
deconsolidation according to IFRS. The recycling did not have any impact on total equity. Fortum
has not had access to financial or non-financial information from the Russia segment since the
first quarter 2023 reporting, and therefore information for the deconsolidation is based on the 31
March 2023 balance sheet.
EUR million
31 Mar 2023
Intangible assets
18
Property, plant and equipment and right-of-use assets
896
Participations in associates and joint ventures
221
Interest-bearing receivables
33
Other non-current and current assets
594
Liquid assets
284
Non-controlling interests
-22
Interest-bearing liabilities
-178
Other liabilities
-161
Net assets deconsolidated
1,685
Items recycled to Income statement
-1,922
Deconsolidation effect (negative)
-3,608
3.3.3 Cash flow information
In the cash flow statement, the net cash flows attributable to the operating, investing and
financing activities of the discontinued operations are disclosed separately. The Russian
operations were deconsolidated due to loss of control as opposed to sale (see Note 2 Critical
accounting estimates and judgements), i.e. no consideration has been received for the Russian
operations. Cash flow from investing activities for discontinued operations in 2023 includes
Russia related cash flows netted with liquid funds of EUR 284 million lost through the seizure of
the Russian assets.
EUR million
2023
Net cash from/used in operating activities
109
Net cash from/used in investing activities
-333
Net cash from/used in financing activities
21
Total net decrease/increase in liquid funds
-202
123
4 Financial risk management
Fortum's risk management framework, objectives, organisation and processes as well as a
description of strategic, sustainability, financial and operational risks can be found in the Risk
management section of the Operating and financial review (OFR).
4.1 Commodity market and fuel risks
Fortum’s business is exposed to fluctuations in prices and availability of commodities used in the
production, transmission and sales of energy products. The main exposure is toward electricity
prices and volumes, prices of emissions, and price and availability of fuels. Fortum hedges its
exposure to commodity market risks in order to improve the predictability of the future result by
reducing volatility in earnings while ensuring cash flow risk is at an acceptable level.
Risk management for commodity hedging activities is based on general standards in the
industry and involves the segregation of duties, as well as daily calculation, monitoring and
reporting of results, positions and risks. Controls are in place to ensure exposures are kept
within approved limits and mandates. Hedging involves the use of derivative financial
instruments, as well as fixed-price physical delivery contracts.
4.1.1 Electricity price and volume risk
The exposure to Nordic electricity prices and normal volume fluctuations (e.g. due to weather-
driven demand and supply changes) is the largest commodity market risk exposure for Fortum in
terms of impact to earnings. The exposure arising from outright power production (hydro,
nuclear, and wind production assets) is hedged by entering into electricity derivatives contracts
on exchanges such as Nasdaq Commodities or the European Energy Exchange, as well as
directly with counterparties active in the energy and financial markets. The main objective of
hedging is to reduce the effect of electricity price volatility in earnings while ensuring the cash
flow risk is at an acceptable level, and to increase the predictability of future results. The
Generation segment’s hedging strategies cover several years in the short-, medium-, and long-
term. These hedging strategies are executed within approved mandates and are continuously
evaluated as electricity and other commodity market prices, the hydrological balance and other
relevant parameters change. 
The Generation segment’s hedging for power sales is performed in EUR on a Nordic level
covering both Finland and Sweden. The currency component of these hedges in the Swedish
entity is currently not hedged. Generation segment’s sensitivity to the Nordic electricity market
price is dependent on the hedge level for a given time period. As per 31 December 2024,
approximately 75% of the Generation segment's estimated Nordic power sales volume was
hedged for the calendar year 2025 with a price of 42 EUR/MWh and approximately 45% for the
calendar year 2026 with a price of 41 EUR/MWh.
4.1.2 Commodity derivatives
The table below discloses Fortum Group's commodity derivatives for which hedge accounting
according to IFRS 9 is applied. The fair values represent the values disclosed on the balance
sheet. See also Note 15 Financial assets and liabilities by categories for accounting principles
and Note 16 Financial assets and liabilities by fair value hierarchy for basis of fair value
estimations.
Commodity derivatives subject to hedge accounting 2024
Volume, TWh
Fair value, EUR million
Under
1 year
1–5
years
Over
5 years
Total
Positive
Negative
Net
Electricity derivatives
20
21
2
43
445
344
101
Gas derivatives
3
1
0
4
26
7
18
Netting against commodity
exchanges 1)
-128
-128
0
Total
343
224
120
1) Receivables and liabilities against commodity exchanges arising from standard derivative contracts with same delivery
period are netted.
Commodity derivatives subject to hedge accounting 2023
Volume, TWh
Fair value, EUR million
Under
1 year
1–5
years
Over 5
years
Total
Positive
Negative
Net
Electricity derivatives
23
18
1
42
439
869
-430
Gas derivatives
3
1
0
4
24
117
-94
Netting against commodity
exchanges 1)
-153
-153
0
Total
309
833
-524
1) Receivables and liabilities against commodity exchanges arising from standard derivative contracts with same delivery
period are netted.
4.1.3 Sensitivity arising from electricity derivatives
The table below presents how a 1 EUR/MWh change in the electricity forward and futures
quotations for the period Fortum has derivatives would impact Fortum’s profit before income
tax and equity. Hedge accounting is applied to most of the hedging strategies using financial
commodity derivatives, with impact of the market price changes of derivatives recognised in
equity.
Impacts are calculated based on the electricity position as of 31 December. Positions are actively
managed in the day-to-day business operations and therefore the sensitivities vary from time to
time. Sensitivity analysis includes only the market risks arising from derivatives i.e. the
underlying physical electricity sales and purchases are not included.
124
Sensitivity is calculated with the assumption that electricity forward and futures quotations
would change 1 EUR/MWh for the period Fortum has derivatives. Different price change
assumptions can be used to assess the impact on sensitivity analysis analogously, relative to 1
EUR/MWh change presented in the table below.
Sensitivity analysis
+/- 1 EUR/MWh change in electricity forward and futures
quotations, EUR million
Effect
2024
2023
Effect on profit before income tax
-/+
5
1
Effect on equity
-/+
43
42
4.2 Liquidity and refinancing risk
Fortum's business is exposed to liquidity and refinancing risks primarily through the need to
finance the Group’s business operations including margining and collaterals issued for hedging
activities. Trading derivative financial instruments exposes the Group to a liquidity risk
associated with having to provide financial collaterals like cash or bank guarantees. A
downgrade in Fortum’s rating, especially to below investment grade, could trigger
counterparties’ right to demand additional collateral, which would need to be provided via cash
or bank guarantees.
The derivative instruments used by the Group are traded via exchanges and over-the-counter
with selected counterparties based on bilateral agreements. Trading through exchanges
requires the exchange of cash (margining payments) with a clearing house or clearing bank to
cover market risk in the case of a member default and the subsequent close-out of its portfolio.
Under credit support annex agreements some foreign exchange- and interest rate hedges are
collateralized and mark to market changes are impacting liquidity immediately. For non-
collateralized foreign exchange deals the cash flow impact is realized when deals are maturing
and rolled, typically during next 12-month period. Trading over-the-counter also exposes the
Group to liquidity risk in case of a counterparty default. A default could trigger a termination
payment in cases where the net market value of the bilateral contracts is positive for the
counterparty. Margin receivables from commodity hedging and foreign exchange and interest
rate derivatives under Credit Support Annex agreements at balance sheet date were EUR 205
million (2023: 590) and margin liabilities EUR 93 million (2023: 131).
The exposure to margining requirements, termination payments, working capital needs and
contingent collateral outflows is continuously assessed and monitored so that adequate liquidity
is available to cover expected future cash collateral required for margining. There are strict
limits in place which ensure that there are sufficient liquid funds and credit lines available to
cover margining requirements and termination payments also in extreme market scenarios.
Liquidity and refinancing risks are managed through a combination of cash positions and
committed credit and other guarantee facility agreements with the core banks. The maturity
profile of loans is monitored to ensure that there is at all times access to adequate liquidity for
investments, loan maturities and margining required for commodity trading and hedging
activities. Stable maturity profile and interest rate risk profile are reducing the refinancing risk
both in terms of availability and average price of loan portfolio.
Fortum’s business is capital intensive and it has a diversified loan portfolio. Long-term financing
is primarily raised by issuing bonds under Fortum Corporation’s Euro Medium Term Note
programme (EMTN), as well as through bilateral and syndicated loan facilities from a variety of
different financial institutions.
In Fortum, financing is primarily raised on parent company level and funds are distributed
internally through various internal financing arrangements. 
On 31 December 2024, 90% (2023: 90%) of the Group’s total external loans was raised by the
parent company Fortum Corporation, and remaining 10% by other subsidiaries (2023: 10%).
At the end of 2024, financial net debt was EUR 367 million (2023: 942). 
On 31 December 2024, loan maturities for the coming twelve-month period amounted to
EUR 476 million (2023: 1,316) which include EUR 17 million loans from financial institutions and
EUR 105 million commercial paper debt. Maturities in 2025 also include EUR 350 million loans
with no contractual due date.
At the end of the reporting period, the Group’s liquid funds totalled EUR 4,136 million (2023:
4,183).
Maturity of loans
EUR million
2024
2025
476
2026
757
2027
15
2028
522
2029
1,056
2030 and later
1,907
Total
4,733
For more information on loans, see Note 27 Interest-bearing liabilities.
125
Liquid funds, major credit lines and debt programmes 2024
EUR million
Liquid funds
4,136
Committed credit lines
Total facility
Available
amount
Drawn
amount
Fortum Corporation, EUR 2,400 million syndicated credit facility
2,400
2,400
0
Fortum Corporation, EUR 800 million bilateral credit facility
800
800
0
Fortum Corporation, EUR 800 million bilateral credit facility
800
800
0
Fortum Corporation, bilateral overdraft facilities
100
100
0
Total 1)
4,100
4,100
0
1)Additionally, Fortum has uncommitted commercial paper programmes in Finland and Sweden, uncommitted margin
facilities and uncommitted EMTN programme. From the commercial paper programmes EUR 105 million, from the margin
facilities EUR 282 million and from the EMTN programme EUR 2,755 million bonds were outstanding at the end of the
reporting period.
Liquid funds, major credit lines and debt programmes 2023
EUR million
Liquid funds
4,183
Committed credit lines
Total facility
Available
amount
Drawn
amount
Fortum Corporation, EUR 2,400 million syndicated credit facility
2,400
2,400
0
Fortum Corporation, EUR 800 million bilateral credit facility
800
800
0
Fortum Corporation, bilateral overdraft facilities
100
100
0
Total 1)
3,300
3,300
0
1)Additionally, Fortum has uncommitted commercial paper programmes in Finland and Sweden, uncommitted margin
facility and uncommitted EMTN programme. From the commercial paper programmes EUR 174 million, from the margin
facility EUR 376 million and from the EMTN programme EUR 2,750 million bonds were outstanding at the end of the
reporting period.
Maturity analysis of financial liabilities and derivatives
Interest-bearing loans and lease liabilities are the contractual undiscounted cash flows including
principal and interest payments. Trade payables equal the carrying amount as these are due
within 12 months. For gross settled derivatives, the contractual nominal amounts are presented
below and for net settled interest rate swaps the net cash outflows are presented in the same
table.
2024
2023
EUR million
Under
1 year
1–5
years
Over
5 years
Total
Under
1 year
1–5
years
Over
5 years
Total
Non-derivatives
Interest-bearing loans, principal and
interest payments
627
2,815
2,300
5,741
1,149
2,676
3,149
6,974
Lease liabilities
18
45
49
112
21
55
56
131
Trade payables
361
361
488
0
0
488
Total non-derivatives
1,006
2,860
2,349
6,214
1,657
2,731
3,205
7,593
Derivatives
Foreign exchange derivatives and cross
currency swaps
Cash inflow (-)
-5,632
-499
0
-6,131
-5,910
-376
0
-6,286
Cash outflow
5,636
492
0
6,128
6,142
387
0
6,529
Interest rate swap liabilities (net
settled)
27
29
0
56
36
51
0
87
Commodity derivatives
Cash inflow (-)
-1,096
-425
-25
-1,546
-1,819
-395
-12
-2,226
Cash outflow
2,021
486
20
2,526
3,392
606
15
4,013
Total derivatives
956
83
-6
1,034
1,842
273
2
2,117
Commodity derivatives traded through exchanges require financial collaterals (like cash or
securities). Fortum has collateral arrangements towards Power Exchanges to cover initial margin
payments of commodity derivatives. Margin receivables are cash/securities posted to exchange
to cover clearing house’s market risk (initial margin) against a default of a member and negative
mark to market values of futures settled through the exchange between counterparties
(variation margin) reducing the counterparty risk versus bilateral trades. These cash collaterals
are constantly fluctuating according to commodity market movements, i.e. if the prices will
increase/decrease, the negative/positive fair value of the commodity derivatives traded through
exchanges need to be covered immediately by posting/receiving cash collateral. Margin
receivables (cash paid) from hedging activities at balance sheet date were EUR 205 million
(2023: 590) and margin liabilities (cash received) EUR 93 million (2023: 131).
126
4.3 Interest rate risk and currency risk
4.3.1 Interest rate risk
Fortum is exposed to cash flow risk from changes in interest rates mainly from interest-bearing
liabilities, liquid funds and derivatives on a fixed- and floating rate basis.
Fortum manages the interest rate exposure through a duration target of the gross loan portfolio
(excluding lease liabilities and provisions), and cash flow at risk limit of the net loan portfolio.
Fortum uses different types of financing contracts and interest rate derivative contracts to
manage the interest rate exposure, and evaluates and develops the strategies in order to find an
optimal balance between risk and financing cost.
On 31 December 2024, the duration of Fortum’s loan portfolio (including derivatives) was 1.8
years (2023: 1.8). Approximately 58% (2023: 66%) of the loan portfolio was on a floating rate
basis, or fixed rate loans maturing within the next 12-month period. The flow risk, measured as
1% increase in the yield curve in all the tenors and currencies for Fortum’s net loan portfolio for
the coming 12 months, was EUR 22 million positive (2023: 15 positive).
Hedge accounting is used for majority of interest rate derivatives which Fortum is using to
manage loan portfolio. Mainly fair value hedge accounting is applied and thus changes in
interest rates could have only minor impact in consolidated income statement or hedging
reserve as the offsetting fair value of bonds is also recognised to consolidated income
statement. The impact of +1%/ -1% interest rate change from interest rate derivatives was EUR
+7 / -7 million to equity (2023: +9 / -10) and there was no significant impact to consolidated
income statement.
The average interest rate for the total loan portfolio, including derivatives in finance costs, was
3.8% at the balance sheet date (2023: 4.3%). The average interest rate of EUR loans was 3.6%
(2023: 4.0%). The average interest rate for the liquid funds was 3.0% at the balance sheet date
(2023: 3.9%).
There has been ongoing reform of certain floating interest benchmark rates to alternative risk
free rates (ARR) due to the IBOR (Interbank Offered Rates) transition. Fortum Group has interest
rate derivatives in EUR and SEK and sees that the IBOR transition will not have significant
impact on the value and effectiveness of these derivatives.
4.3.2 Currency risk
Fortum’s policy is to hedge major transaction exposures on a local level in the reporting
currency of each legal entity in order to avoid exchange differences in the consolidated income
statement. An exception is Generation segment’s hedging of power sales in Sweden where the
currency component is not hedged. Derivatives are used to hedge existing foreign exchange
risks, not for proprietary trading.
Treasury transaction exposure
2024
2023
EUR million
Net
Position
  Hedge
Open
Net
Position
Hedge
Open
SEK
4,285
-4,283
1
4,877
-4,879
-2
PLN
511
-511
-1
543
-541
1
NOK
447
-448
0
522
-521
1
USD
-96
96
-1
-83
83
0
Other
56
-55
1
1
6
6
Total
5,202
-5,201
1
5,859
-5,853
6
Fortum has cash flows, assets and liabilities in currencies other than EUR and is therefore
exposed to fluctuations in exchange rates. Currency exposures are divided into transaction
exposures (foreign exchange exposures relating to contracted or estimated cash flows and
balance sheet items where changes in exchange rates will have an impact on earnings and cash
flows) and translation exposure (foreign exchange exposure that arises when profits and
balance sheets in foreign entities are consolidated).
Transaction exposures arise mainly from physical and financial trading of commodities, existing
and new investments, external and internal financing and shareholder loans. Contracted cash
flow exposures are hedged to reduce volatility in future cash flows. These hedges normally
consist of currency derivative contracts, which are matched against the underlying future cash
flow according to maturity. Fortum has currency cash flow hedges both with and without hedge
accounting treatment under IFRS. Those currency cash flow hedges for which hedge accounting
is not applied are mainly hedging commodity derivatives and create volatility in operating profit.
There was no significant ineffectiveness arising from cash flow hedges in 2024.
As of 31 December 2024, had EUR been 5% weaker/stronger on closing date, then the impact
from loans, receivables and derivatives to consolidated income statement would have been EUR
-19/+19 million (2023: -17/+17) and group's equity EUR -3/+3 million (2023: -3/+3). Income
statement sensitivity resulted from cash flows in SEK and NOK, and equity sensitivity from cash
flows in PLN, SEK and USD.
Translation exposure position includes net investments in foreign subsidiaries and associated
companies. Translation exposures in Fortum are generally not hedged as the majority of these
assets are considered to be long-term strategic holdings. In Fortum, this means mainly entities
operating in Sweden, Norway and Poland, whose base currency is not euro.
Exchange differences arising from the translation of the net investment in foreign entities are
taken to equity. The net effect of exchange differences on equity attributable to equity holders
mainly from SEK, NOK and PLN was EUR -1,010 million (2023: -1,026). For total translation
differences see Consolidated statement of changes in total equity.
127
Interest rate and currency derivatives by instrument 2024
Notional amount
Fair value
Remaining lifetimes
EUR million
Under
1 year
1–5
years
Over
5 years
Total
Posi-
tive
Nega-
tive
Net
Hedge accounting
Foreign exchange derivatives
172
124
0
296
6
12
-6
Interest rate swaps
0
2,425
450
2,875
95
54
40
Cross currency swaps
0
116
0
116
3
1
2
Non-hedge accounting
Foreign exchange derivatives
5,430
251
0
5,682
28
22
6
Interest rate swaps
0
13
0
13
0
0
0
Cross currency swaps
24
0
0
24
2
0
2
Total
5,625
2,930
450
9,005
134
89
45
Of which long-term
105
56
48
Short-term
30
32
-3
Interest rate and currency derivatives by instrument 2023
Notional amount
Fair value
Remaining lifetimes
EUR million
Under
1 year
1–5
years
Over 5
years
Total
Posi-
tive
Nega-
tive
Net
Hedge accounting
Foreign exchange derivatives
168
124
0
292
3
15
-12
Interest rate swaps
100
1,300
1,575
2,975
114
83
31
Cross currency swaps
47
73
0
120
3
0
2
Non-hedge accounting
Foreign exchange derivatives
5,689
151
0
5,840
8
234
-226
Interest rate swaps
0
14
0
14
1
0
1
Cross currency swaps
0
24
0
24
1
0
1
Total
6,004
1,686
1,575
9,265
129
333
-204
Of which long-term
115
95
21
Short-term
14
238
-224
4.4 Credit risk
Fortum is exposed to counterparty risk whenever there is a contractual arrangement with an
external counterparty.
Credit risk exposures relating to financial derivative instruments are often volatile and include
both the replacement risk and the settlement risk. Exchange-traded derivatives are cleared
through central clearing parties (CCPs) or through clearing banks while over-the-counter (OTC)
derivative contracts are concluded directly with a number of different counterparties, including
energy wholesalers and retailers, utilities, trading companies, energy companies, industrial end-
users and financial institutions active in the financial and energy markets. Due to Fortum’s net
short position in Nordic power hedges credit exposure tends to increase with the value of
hedges if Nordic power prices decrease. Currency and interest rate derivative counterparties
are limited to investment grade banks and financial institutions. International Swaps and
Derivatives Association (ISDA) Master agreements, which include netting clauses and in some
cases Credit Support Annex agreements, are in place with most of these counterparties. The
majority of commodity derivative counterparties have investment-grade or comparable ratings.
Master agreements, such as those published by ISDA and European Federation of Energy
Traders (EFET), which include netting clauses, are in place with the majority of the
counterparties.
Due to the financing needs and management of liquidity, Fortum has counterparty credit
exposure towards a number of banks and financial institutions in the form of deposits and
towards corporate issuers of commercial papers, mainly in the Nordic market. The majority of
the exposure is towards Fortum’s key relationship banks, which are highly creditworthy
institutions. Investments in commercial papers were all with investment grade issuers at 31
December 2024.
Credit risk relating to customers, suppliers and trading partners is spread across a wide range of
industrial counterparties, energy companies, government and municipal entities, utilities, small
businesses, housing associations and private individuals over a range of geographic regions. The
majority of exposure is in the form of derivative fair values and trade receivables from the sale of
electricity, gas and heat in the Nordic and Polish market.
4.4.1 Credit quality of major financial assets
Fortum recognises loss allowance for expected credit losses (ECL) on financial assets classified
to amortised cost category at each reporting date. The impairment model is applied to financial
assets such as trade receivables, deposits, commercial papers, and loan and other interest-
bearing receivables. See Note 24 Trade and other receivables for details on expected credit
losses recognised for trade receivables.
128
Expected credit loss is calculated on an individual counterparty basis for deposits, commercial
papers and loan and other interest-bearing receivables. No impairment loss is recognised on
cash in bank accounts since expected credit loss is immaterial due to low risk of default. The risk
of default is evaluated at each reporting date based on credit ratings to determine if credit risk
has increased significantly. The value of collateral and other measures taken to reduce credit
risk (e.g. credit default insurance) is included in the calculation of expected credit losses in the
“loss given default” ratio.
A financial asset with an investment-grade rating is assumed to have low credit risk. A change of
credit rating from investment to non-investment grade constitutes a significant increase in
credit risk. If the credit risk on the financial asset has not increased significantly since the initial
recognition, loss allowance equals to 12 month ECL. If the credit risk on the financial asset has
increased significantly since initial recognition, loss allowance equals to the lifetime expected
credit losses.
The loss allowance for interest-bearing receivables totalled EUR 27 million on 31 December 2024
(2023: 1). Amounts for interest-bearing receivables including bank deposits and derivative
financial instruments recognised as assets are presented in the following table.
For derivative financial instruments the counterparty credit risk has been taken into account
when determining fair value. The impact of credit risk is measured on a counterparty basis
through credit value adjustment (CVA) method applying similar inputs and assumptions to which
are used in the measurement of ECL. See also Note 16 Financial assets and liabilities by fair value
hierarchy for basis of fair value estimations.
All counterparties for currency and interest rate derivatives and the majority of counterparties
for bank deposits have an external rating from S&P Global Ratings, Fitch and/or Moody’s credit
agencies. For counterparties rated by more than one rating agency, the lowest rating is used to
determine if it is investment grade.
In the commodity derivatives and commercial paper market, there are a number of
counterparties not rated by S&P Global Ratings, Fitch or Moody’s. For these counterparties,
Fortum assigns an internal rating. The internal rating categories that are considered to be
comparable to investment grade have similar financial metrics or display historical default rates
which correspond to investment grade companies rated by S&P Global Ratings, Fitch or
Moody’s.
Credit quality of major financial assets
2024
2023
EUR million
Carrying
amount
of which
past due
Carrying
amount
of which
past due
Receivables with investment grade or comparable
rating
Deposits, commercial papers and cash in bank
accounts
4,089
0
4,122
0
Fair values of interest rate and currency
derivatives
134
0
129
0
Fair values of commodity derivatives on
exchanges
84
0
135
0
Fair values of OTC commodity derivatives
394
0
301
0
Total receivables with investment grade or
comparable rating
4,701
0
4,688
0
Receivables with non-investment grade or
comparable rating
Fair values of OTC commodity derivatives
33
0
39
0
Loan and other interest bearing receivables
1
0
0
0
Total receivables with non-investment grade or
comparable rating
34
0
39
0
Other receivables 1)
Loan receivables from associates and joint
ventures
431
0
644
0
Restricted cash
7
0
13
0
Cash in other bank accounts
47
0
62
0
Total other receivables
485
0
719
0
Total
5,220
0
5,446
0
1) Other receivables include financial assets which have not been divided to investment-grade and non-investment grade or
comparable ratings.
129
4.4.2 Financial instruments subject to master netting agreements
The following tables present the recognised financial instruments that are offset, or subject to
enforceable master netting arrangements and other similar agreements but not offset. The
column 'net amount' shows the impact on the Group's balance sheet if all netting rights were
exercised.
Netting agreements for financial assets and liabilities 2024
EUR million
Gross
amount
Gross
amount
netted on
the
balance
sheet 1)
Net
amounts
presented
on the
balance
sheet
Conditional
netting
amount
(netting
agreements)
Financial
collateral
received /
pledged
Net
amount
Financial assets
Interest-rate and currency
derivatives
134
0
134
57
69
8
Commodity derivatives
842
331
511
233
4
274
Trade receivables
812
0
812
812
Total
1,788
331
1,457
290
73
1,094
Financial liabilities
Interest-rate and currency
derivatives
89
0
89
57
9
22
Commodity derivatives
796
331
465
233
232
Trade payables
361
0
361
361
Total
1,246
331
915
290
9
616
1)Receivables and liabilities from electricity and other commodity exchanges arising against standard derivative contracts
with same delivery period are netted.
Netting agreements for financial assets and liabilities 2023
EUR million
Gross
amount
Gross
amount
netted on
the
balance
sheet 1)
Net
amounts
presented
on the
balance
sheet
Conditional
netting
amount
(netting
agreements)
Financial
collateral
received /
pledged
Net
amount
Financial assets
Interest-rate and currency
derivatives
129
0
129
80
42
7
Commodity derivatives
990
514
476
343
4
129
Trade receivables
1,120
0
1,120
1,120
Total
2,238
514
1,725
423
46
1,255
Financial liabilities
Interest-rate and currency
derivatives
333
0
333
80
176
76
Commodity derivatives
1,454
514
940
343
597
Trade payables
488
0
488
488
Total
2,274
514
1,760
423
176
1,161
1)Receivables and liabilities from electricity and other commodity exchanges arising against standard derivative contracts
with same delivery period are netted.
130
5 Capital risk management
At the beginning of February 2024, the Fortum Board of Directors resolved on clarifications to
Fortum’s strategy.
Fortum’s long-term financial targets are:
• To ensure a credit rating of at least BBB, Financial net debt-to-Comparable EBITDA can be a
maximum of 2.0–2.5 times.
• For the period of 2025–2027, Fortum’s capital expenditure is expected to be approximately
EUR 1.4 billion (excluding acquisition) of which annual growth capital expenditure is expected
to be EUR 150–300 million and annual maintenance capital expenditure EUR 250 million.
• To ensure required returns for any potential new investments, Fortum continues to be
selective and applies earlier set investment criteria; project based WACC + 150–400
investment hurdles depending on technology or investment project, as well as environmental
targets.
• Fortum’s dividend policy - a payout ratio of 60–90% of comparable EPS. The payout ratio will
be used so that the upper end of the range of the pay-out ratio is applied in situations with a
strong balance sheet and low investments, while the lower end of the range would be applied
with high leverage and/or significant investments and high capital expenditure.
On 2 November 2023, Fortum initiated an efficiency programme targeting to reduce annual fixed
costs by EUR 100 million gradually until the end of 2025.
Comparable EBITDA is defined as an alternative performance measure and used as a component
in the capital structure target ’Financial net debt-to-Comparable EBITDA’.
On 25 March 2024, S&P Global Ratings (S&P) upgraded Fortum’s current long-term credit rating
to BBB+ with Stable Outlook. The previous rating was BBB with Stable Outlook.
On 18 March 2024, Fitch Ratings (Fitch) affirmed Fortum’s current long-term credit rating at BBB
with stable outlook.
Financial net debt/comparable EBITDA ratio
EUR million
Note
2024
2023
+ Interest-bearing liabilities
4,828
5,909
- Liquid funds
4,136
4,183
- Collateral arrangement
213
325
- Margin receivables
205
590
+ Margin liabilities
93
131
+/- Net margin liabilities/receivables
-111
-459
Financial net debt
27
367
942
Operating profit
1,325
1,662
+ Depreciation and amortisation
379
359
EBITDA
1,704
2,021
- Items affecting comparability
-147
-118
Comparable EBITDA from continuing operations
1,556
1,903
Financial net debt/comparable EBITDA
0.2
0.5
See Note 7 Comparable operating profit and comparable net profit for details on items affecting
comparability, and Note 27 Interest-bearing liabilities, including further details of the financing
and liquidity status and see Definitions and reconciliations of key figures.
131
6 Segment reporting
MATERIAL ACCOUNTING POLICIES
REVENUE RECOGNITION
Fortum's operations comprise the provision of electricity, heating and cooling, gas and waste
management services. Revenue streams can be divided into five groups: power sales to
wholesale markets, power sales to retail customers, heating sales, gas sales and waste
treatment sales. 
Revenue is recognised when goods are transferred or services are performed, i.e. when a
performance obligation is satisfied and control of the good or service underlying the particular
performance obligations is transferred to the customer. Revenue is shown at the price that
Fortum expects to be entitled to and it is presented net of rebates, discounts, value-added tax
and selective taxes, such as electricity tax. Revenues include effects from physically settled
contracts that were not entered into and do not continue to be held for the purpose of receipt
or delivery of the commodity in accordance with the Group's expected sale, purchase or usage
requirements and thus are within the scope of IFRS 9. see Note 7 Comparable operating profit
and comparable net profit. Accounting policies for the different revenue streams are described
below.
POWER SALES TO WHOLESALE MARKETS AND INDUSTRIAL CUSTOMERS
Physical power sales are recognised on delivery. Sales to wholesale markets are carried out at
a spot price and thus there are no variable elements. Fortum is also selling power to industrial
customers and municipalities through bilateral contracts (Power purchase agreements, PPA's).
These are typically fixed price physical power sales contracts with multi-year duration, which
can extend to over 10 years. There may also be fixed price sale of renewable energy
certificates incorporated into these contracts. Both of these sales are accounted for as
Fortum's ordinary sales and thus not within the scope of IFRS9. Contracts are entered into for
securing steady cash flow and reducing income statement volatility. 
Revenues are also generated from sale of renewable energy certificates. These include mostly
Guarantees of Origin certificates, which are received free of charge for renewable energy
production. Undelivered certificates are presented in inventories and revenue is recognized
when the certificate is transferred to the customer. See Note 23 Inventories.
POWER SALES TO RETAIL CUSTOMERS
Fortum’s contracts with consumer and business customers cover power sales, while the
distribution service is delivered by the transmission company operating the local network.
There is only one performance obligation, which is to stand-ready to supply electricity to the
customer. The transaction price generally includes both a fixed monthly charge and a variable
fee based on the volume of power supplied. As Fortum’s promise is to stand ready to deliver
electricity, the fixed and variable components are recognised based on the fees chargeable
from the customer. If automated meter reading is not available, power consumption between
the last meter reading and the end of the month is estimated.
HEAT SALES
In many areas the district heating service covers both the distribution and sale of heat. Fortum
is usually responsible for delivering the whole service, even when heat is being produced by a
third party, and is acting as a principal for heat sales as well. There is only one performance
obligation, which is to stand-ready to supply heat to the customer. The fees charged from the
customer generally comprise a fixed monthly charge and a variable fee based on the volume of
heat supplied. As Fortum’s promise is to stand ready to deliver heat, the fixed and variable
components are recognised based on the fees chargeable from the customer. In Poland there
are also areas where Fortum operates only the heat production facilities while some third party
is responsible for the distribution of heat. In these areas the performance obligation is to
supply heat and revenue is recognised based on the volume of heat that Fortum is entitled to
charge from the customer.
GAS SALES
Revenues are generated from sales of gas to retail customers, which are recognised when
delivery takes place and control is transferred to the customer. Contracts generally contain
one performance obligation for which the entire transaction price is recognised.
Gas contracts can also include fixed price components that are recognised in line with the
customer’s actual consumption profile, when the nature of the performance obligation is to
deliver gas instead of standing-ready to deliver gas.
132
WASTE TREATMENT SALES
Majority of revenue from waste management services arises from fees charged for receiving
waste from customers (i.e. gate fees). The fee is usually determined based on the volume of
waste received, there are no variable elements in pricing. Fortum is required to treat the waste
and this performance obligation is satisfied when treatment has been performed.
Transportation of the waste forms another performance obligation. Fees for waste treatment
and transportation services are separately agreed in the contract and correspond to the price
that would be charged for these services separately. Revenue for transportation service is
recognised when the service has been provided.
Waste treatment sales include also various types of soil and landfill site projects, which mostly
take place at customer sites. Fees charged are invoiced based on payment schedules agreed
with the customer. The customer obtains the benefit of the construction work simultaneously
when the construction work proceeds, and therefore project revenues are recognised over
time. Progress of the construction is best measured either through costs incurred, or the
completed area of the construction site.
NETTING AND INTER-SEGMENT TRANSACTIONS
Generation segment sells portion of its power production to Nord Pool and Consumer
Solutions segment buys its electricity from Nord Pool in Nordic. For these segments
eliminations of sales include eliminations of sales and purchases with Nord Pool that are
netted at Group level on an hourly basis and posted either as revenue or cost depending on if
Fortum is a net seller or net buyer during any particular hour. 
Intersegment sales, expenses and results for the different business segments are affected by
intragroup deliveries, which are eliminated on consolidation. Inter-segment transactions are
based on commercial terms.
6.1 Business and segment structure
Fortum discloses segment information in a manner consistent with internal reporting to
Fortum’s Board of Directors and Fortum Leadership Team, led by the President and CEO. Fortum
segments are based on the type of business operation.
The business units are classified into the following reportable segments under IFRS:
• The Generation segment includes the Hydro Generation, Nuclear Generation, Corporate
Customers and Markets, and Renewables and Decarbonisation business units.
• The Consumer Solutions segment includes the Consumer Solutions business unit.
• The Other Operations segment includes the Circular Solutions business unit, Innovation and
Venturing activities, enabling functions and corporate management.
6.2 Definitions for segment information
Fortum’s segment information discloses the financial measurements used in financial target
setting and forecasting, management’s follow up of financial performance and allocation of
resources in the Group’s performance management process. See Note 1.4 Measures for
performance.
Segment reporting is based on the same accounting policies as Fortum Group.
133
Description of reportable segments.svg
Generation is responsible for power generation mainly in the Nordics.
The segment comprises low-carbon hydro, nuclear, wind and solar
power generation, as well as district heating and cooling, and
decarbonisation of heat production assets. The Generation segment
is responsible for hedging and value creation in physical and financial
power markets and is a customer interface for industrial and
municipal customers to drive decarbonisation in industries and
provide clean energy at scale. Furthermore, the business develops
capabilities and projects in renewables and nuclear, and explores
clean hydrogen.
Consumer Solutions is responsible for offering energy solutions to
consumers, including small- and medium-sized enterprises,
predominantly in the Nordics and Poland. Fortum is the largest
energy solutions provider in the Nordics, with over two million
customers. The business provides electricity, as well as related value-
added and digital services, mainly to retail customers.
The Other Operations segment includes the Circular Solutions
business, responsible for Fortum’s recycling and waste assets, as
well as turbine and generator services, biobased solutions and
battery recycling business. All these businesses, mainly excluding
the battery recycling business, were divested during the fourth
quarter of 2024. The Other Operations segment also comprises
innovation and venturing activities, enabling functions and corporate
management.
134
6.3 Segment information
Consolidated income statement
Generation 1)
Consumer Solutions
Other Operations
Total Continuing Operations
EUR million
Note
2024
2023
2024
2023
2024
2023
2024
2023
Power sales
3,234
3,889
2,635
3,219
5
9
5,873
7,117
Heat sales
502
481
0
0
25
31
527
512
Gas sales
0
0
386
422
0
0
386
422
Waste treatment sales
11
7
0
0
212
226
223
234
Other sales
48
43
53
125
355
281
456
450
Sales
3,795
4,420
3,073
3,766
596
548
7,464
8,734
Internal eliminations
-307
-394
-5
-20
-157
-99
-469
-514
Netting of Nord Pool transactions 2)
-1,196
-1,510
External sales
3,488
4,026
3,068
3,745
439
449
5,800
6,711
Comparable EBITDA
1,421
1,874
161
108
-26
-80
1,556
1,903
Depreciation and amortisation
-204
-196
-85
-70
-90
-93
-379
-359
Comparable operating profit
1,218
1,679
76
38
-116
-173
1,178
1,544
Impairment charges and reversals
0
0
0
0
-17
0
-17
0
Capital gains and other related items
3
0
2
0
1
183
1
183
4
Changes in fair values of derivatives hedging future cash flow
-107
366
46
-254
0
0
-61
111
Other
-7
12
0
0
50
-9
43
3
Items affecting comparability
7
-115
380
46
-253
216
-8
147
118
Operating profit
1,103
2,058
122
-215
100
-181
1,325
1,662
Comparable share of profit of associates and joint ventures
7, 19
-26
7
0
0
-3
0
-30
7
Share of profit of associates and joint ventures
19
22
59
0
0
-3
0
19
59
1)Power sales, both internal and external, include effects from realised hedging contracts. Effect on sales can be negative or positive depending on the average contract price and the realised spot price. Power sales in Fortum contains realised result from
commodity derivatives, which have not had hedge accounting status under IFRS 9, but have been considered operatively as hedges. Power sales also include sale of renewable energy certificates EUR 149 million (2023: 97).
2)Sales and purchases with Nord Pool Spot are netted at Group level on an hourly basis and posted either as revenue or cost depending on whether Fortum is a net seller or net buyer during any particular hour.
135
Gross investments / divestments
Generation
Consumer Solutions
Other Operations
Total Continuing Operations
EUR million
Note
2024
2023
2024
2023
2024
2023
2024
2023
Gross investments in shares
3
0
5
0
22
33
26
33
53
Capital expenditure
17, 18
355
450
71
81
57
81
483
611
Gross divestments of shares
3
34
0
0
0
751
4
785
4
Segment assets and liabilities
Generation
Consumer Solutions
Other operations
Total
EUR million
Note
2024
2023
2024
2023
2024
2023
2024
2023
Non-interest-bearing assets
7,000
6,864
1,061
1,311
302
1,094
8,362
9,269
Participations in associates and joint ventures
19
1,189
1,000
1
0
71
59
1,260
1,059
Eliminations
-126
-105
Total segment assets
8,188
7,864
1,061
1,311
373
1,153
9,496
10,223
Interest-bearing receivables
22
714
1,033
Deferred tax assets
28
845
958
Other assets
2,116
2,342
Liquid funds
25
4,136
4,183
Total assets
17,307
18,739
Segment liabilities
581
601
337
472
151
313
1,068
1,387
Eliminations
-126
-105
Total segment liabilities
942
1,282
Deferred tax liabilities
28
386
428
Other liabilities
1,998
2,621
Total liabilities included in capital employed
3,325
4,331
Interest-bearing liabilities
27
4,828
5,909
Total equity
9,154
8,499
Total equity and liabilities
17,307
18,739
136
Comparable operating profit including comparable share of profit of associates and joint ventures and Comparable return on net assets
Generation
Consumer Solutions
EUR million
Note
2024
2023
2024
2023
Comparable operating profit
1,218
1,679
76
38
Comparable share of profit of associates and joint ventures
7, 19
-26
7
0
0
Comparable operating profit including comparable share of profit/loss of associates and joint ventures
1,191
1,686
76
38
Segment assets
8,188
7,864
1,061
1,311
Segment liabilities
581
601
337
472
Comparable net assets
7,608
7,263
725
838
Comparable net assets average 1)
7,425
6,959
683
847
Comparable return on net assets, %
16.0
24.2
11.2
4.5
1)Average net assets are calculated using the opening balance of the financial year and each quarter’s closing value.
Employees
Generation
Consumer Solutions
Other operations
Total Continuing Operations
2024
2023
2024
2023
2024
2023
2024
2023
Number of employees 31 December
2,053
1,758
1,118
1,281
1,295
2,186
4,466
5,225
Average number of employees
1,968
1,735
1,176
1,232
2,158
2,237
5,301
5,205
137
6.4 Group-wide disclosures
The Group’s operating segments operate mainly in the Nordic countries and Poland. The
Group’s domicile is Finland.
The table below presents sales by geographical area based on customer location. Capital
expenditure, assets and personnel are reported where assets and personnel are located.
Participations in associates and joint ventures are not presented by location since these
companies may have business in several geographical areas.
Due to the large number of customers and the variety of business activities, there is no
individual customer whose business volume is material to Fortum’s total business volume.
Sales by geographical area based on customer location
EUR million
2024
2023
Nordics
4,084
4,957
Poland
1,473
1,437
Other
242
316
Total
5,800
6,711
Nordic power production is not presented by country since Nordic power production is mainly
sold through Nord Pool. 
Capital expenditure by country
EUR million
2024
2023
Finland
242
371
Sweden
144
137
Norway
17
19
Poland
61
67
Other
20
17
Total
483
611
Non-current assets by country
EUR million
2024
2023
Finland
2,929
3,280
Sweden
3,932
3,918
Norway
343
370
Poland
610
591
Other and eliminations
65
154
Total
7,880
8,314
Non-current assets include intangible assets, property, plant and equipment and right-of-use
assets as well as participations in associates and joint ventures.
Number of employees on 31 December by country
2024
2023
Finland
2,189
2,682
Sweden
931
1,038
Norway
316
350
Poland
779
717
Other
251
438
Total
4,466
5,225
138
7 Comparable operating profit and comparable net
profit
7.1 Reconciliation of operating profit to comparable
operating profit
Fortum uses Alternative performance measures (APMs) in the financial target setting and
forecasting, management’s follow up of financial performance of segments and the Group as
well as allocation of resources in the Group’s performance management process. The business
performance of the operations cannot be compared from one period to another without
adjusting for items affecting comparability and therefore they are excluded from Comparable
operating profit and Comparable EBITDA. Definitions are presented in the section Definitions
and reconciliations of key figures.
Reconciliation of operating profit to comparable operating profit 2024
EUR million
Unadjusted
Impairment
charges
and
reversals
Capital
gains and
other
related
items
Changes in
fair values of
derivatives
hedging
future cash
flow
Other
Reported
Sales
5,742
0
0
58
0
5,800
Other income
240
0
-183
49
-58
48
Materials and services
-3,289
0
0
-12
6
-3,295
Employee benefits
-485
0
0
0
0
-485
Depreciation and amortisation
-396
17
0
0
0
-379
Other expenses
-486
0
0
-34
9
-511
Comparable operating profit
17
-183
61
-43
1,178
Items affecting comparability
-17
183
-61
43
147
Operating profit
1,325
1,325
Reconciliation of operating profit to comparable operating profit 2023
EUR million
Unadjusted
Impairment
charges
and
reversals
Capital
gains and
other
related
items
Changes in
fair values of
derivatives
hedging
future cash
flow
Other
Reported
Sales
6,716
0
0
-5
0
6,711
Other income
397
0
-4
-361
0
32
Materials and services
-3,606
0
0
-190
-12
-3,808
Employee benefits
-436
0
0
0
0
-436
Depreciation and amortisation
-359
0
0
0
0
-359
Other expenses
-1,049
0
0
444
9
-595
Comparable operating profit
0
-4
-111
-3
1,544
Items affecting comparability
0
4
111
3
118
Operating profit
1,662
1,662
Impairment charges and reversals
Impairment charges and reversals of previously recognised impairments are adjusted from
depreciation and amortisation and presented in items affecting comparability. See Note 20
Impairment testing.
Capital gains and other related items
Capital gains and other related items include capital gains and transaction costs from
acquisitions, which are adjusted from other income and other expenses, respectively.
In 2024 capital gains and other related items amounted to EUR 183 million, including a tax-
exempt capital gain of EUR 176 million from the divestment of the recycling and waste business.
See Note 3.2 Disposals.
Changes in fair values of derivatives hedging future cash flow
Unrealised changes in the fair values of financial derivative instruments hedging future cash
flows that do not qualify for hedge accounting and physical contracts that are treated as
derivatives are recognised in items affecting comparability. For additional information, see Note
15 Financial assets and liabilities by categories.
Impacts from settlement of physical contracts that have been treated as derivatives are
adjusted from other income and other expenses to sales and materials and services to reflect
the contract pricing as opposed to market pricing.
139
Adjustments are needed to improve the understanding of the financial performance when
comparing results from one period to another.
Other
Restructuring and cost management expenses, and other miscellaneous non-operating items
are adjusted mainly from materials and services or other expenses. In 2024, 'Other' includes EUR
58 million income from a settlement of a commercial dispute. Related interest income of EUR 13
million is included in 'Finance costs - net'.
7.2 Reconciliation from operating profit to comparable net
profit
Comparable net profit and comparable earnings per share
EUR million
Note
2024
2023
Comparable operating profit
1,178
1,544
Comparable share of profit/loss of associates and joint ventures
19
-30
7
Comparable finance costs - net
11
-36
-137
Comparable profit before income tax
1,112
1,415
Comparable income tax expense
12
-219
-269
Comparable non-controlling interests
7
4
Comparable net profit from continuing operations
900
1,150
Comparable net profit from discontinued operations
3
—
34
Comparable net profit, total Fortum
900
1,184
Comparable earnings per share, continuing operations EUR
13
1.00
1.28
Comparable earnings per share, discontinued operations EUR
3.3
—
0.04
Comparable earnings per share, total Fortum, EUR
13
1.00
1.32
Reconciliation from net profit to comparable net profit
EUR million
Note
2024
2023
Net profit
1,160
1,515
-  Items affecting comparability
7
-147
-118
- Adjustments to share of profit/loss of associates and joint ventures
19
-49
-52
- Adjustments to finance costs - net
11
-91
2
- Adjustments to income tax expenses
20
-201
-  Non-controlling interests
4
-1
- Adjustments to non-controlling interests
3
5
Comparable net profit from continuing operations
7
900
1,150
Comparable net profit from discontinued operations
—
34
Comparable net profit, total Fortum
900
1,184
See also Definitions and reconciliations of key figures.
Comparable share of profit/loss of associates and joint ventures
Share of profit/loss of associates and joint ventures is adjusted for significant items, similar to
adjustments made to arriving at comparable net profit. See Note 19 Participations in associated
companies and joint ventures.
Comparable finance costs - net
Finance costs – net are adjusted for e.g. nuclear-related items recognised in other financial
items - net, fair value changes on financial items, as well as impairment charges and reversals of
previously recorded impairment charges on financial items and other one-time adjustments. In
2024, nuclear-related items adjusted to finance costs - net totalled EUR -86 million. See Note 11
Finance costs – net.
Comparable income tax expense
Income tax expense is adjusted for tax impacts on items affecting comparability, adjustments to
finance costs – net, tax rate changes and other one-time adjustments. In 2023, adjustments to
income tax expense included EUR 225 million relating to one-time tax impacts mainly recognised
in Ireland and in the Netherlands, due to the impairment of the Russian assets. See Note 12
Income tax expense and 28 Income taxes on the balance sheet.
Comparable non-controlling interests
Non-controlling interests are adjusted for impacts relating to the non-controlling interests on
items affecting comparability, adjustments to share of profit/loss of associates and joint
ventures, adjustments to finance costs – net and adjustments to income tax expense. See
Consolidated statement of changes in total equity.
140
8 Other expenses
EUR million
2024
2023
Operation and maintenance costs
107
111
IT and telecommunication costs
110
104
Other
294
381
Total
511
595
The major components recorded in other expenses are the external operation and maintenance
costs of power and heat plants. Other includes expenses relating to properties and other
operative expenses.
Auditors’ fees
EUR million
2024
2023
Audit fees
2.0
2.3
Audit-related assignments
0.5
0.4
Tax assignments
0.0
0.1
Other assignments
0.0
0.1
Total
2.5
2.8
Deloitte Oy is the appointed auditor until the next Annual General Meeting in 2025.
Audit fees include fees for the audit of the consolidated financial statements, review of interim
reports, as well as fees for the audit of Fortum Corporation and its subsidiaries. In 2024 the audit
fees also include the limited assurance of the sustainability statement. Audit-related
assignments include fees for other assurance and associated services related to the audit. Other
assignments consist of advisory services.
9 Materials and services
EUR million
2024
2023
Materials 1)
2,531
3,083
Materials purchased from associated companies and joint ventures
626
603
Other
138
122
Total
3,295
3,808
1) Materials include renewable energy certificate purchases EUR 66 million (2023: 78) and CO2 emission rights purchases
EUR 67 million (2023: 68).
Materials consists mainly of purchased electricity and gas including renewable energy
certificates for retail sales and heat production and also fuels including CO2 emission rights used
for power and heat production. Electricity purchase from Nord Pool is netted at Group level on
an hourly basis and posted either as revenue or cost depending on if Fortum is a net seller or net
buyer during any particular hour. See Note 6 Segment reporting and Note 23 Inventories.
Materials purchased from associates and joint ventures consist of nuclear and hydropower
purchased at production cost (including interest costs and production taxes). Taxes related to
nuclear and hydro production are included in taxes paid through purchases from associates and
joint ventures. See Note 38 Related party transactions.
141
10 Employee benefits and Board remuneration
EUR million
2024
2023
Wages and salaries
364
324
Pensions
Defined contribution plans
53
47
Defined benefit plans
4
3
Social security costs
41
37
Share-based incentives
6
6
Other employee costs
18
19
Total
485
436
The compensation package for Fortum’s employees consists of salaries, fringe benefits, short-
term incentives, profit sharing paid to the Personnel Fund (in Finland) and long-term incentives.
For further information on pensions, see Note 31 Pension obligations.
10.1 Short-term incentives
Short-term incentive (STI) programme is designed to support the achievement of the Group’s
financial and other relevant targets on an annual basis. As a main principle, all employees are
covered by the programme or alternatively by a business specific arrangement.
The Board of Directors determines annually the performance criteria and award levels for the
Fortum Leadership Team (FLT). They can vary from year to year to reflect business priorities.
The target incentive potential is 20% and the maximum incentive potential is 40% of the annual
base salary. The Board of Directors assesses the performance of the President and CEO and the
members of the Fortum Leadership Team on a regular basis.
Awards for other employees are based on a combination of Group, unit and individual or team
targets. The targets are set in annual performance discussions held at the beginning of
each year. Awards under the STI programme are paid fully in cash.
10.2 Long-term incentives
The purpose of long-term incentive programmes is to support the delivery of sustainable long-
term performance, align the interests of management with those of shareholders, and support in
committing and retaining key individuals.
LTI programme provides participants with the opportunity to earn company shares. Under the
LTI programme, and subject to the decision of the Board of Directors, a new LTI plan
commences annually. The Board of Directors approves participation of the Fortum Leadership
Team members in each annually commencing LTI plan. Subject to a decision by the Board of
Directors, the President and CEO is authorised to decide on individual participants and potential
maximum awards for other participants than the Fortum Leadership Team in accordance with
the nomination guidelines approved by the Board of Directors. Participation in the LTI plan
precludes the individual from being a member in the Fortum Personnel Fund.
Each LTI plan begins with a three-year earnings period, during which participants may earn
share rights if the performance criteria set by the Board of Directors are fulfilled. If the minimum
performance criteria are not met, no shares will be awarded. If performance is exceptionally
good and the targets approved by the Board of Directors are achieved, the combined gross
value of all variable compensation cannot exceed 120% of the person’s annual salary in any
calendar year. After the earnings period has ended and the relevant taxes and other
employment-related expenses have been deducted, participants are paid the net balance in the
form of shares.
The share awards are not subject to a lock-up period. However, Fortum Leadership Team
members aggregate ownership of Fortum shares has to be greater than or equal to their annual
salary. Those members whose aggregate ownership of Fortum shares does not yet fulfil the
shareholding requirement are required to retain at least 50% of the shares received until the
required level of shareholding is met.
The Restricted share programme is supplementing the current LTI programme. The Restricted
share programme is following the main terms and conditions of the general LTI programme with
the exception that the allocated shares will be delivered after the three-year plan period
independent of performance measures, subject to continued employment. The Restricted share
programme is designated for special purposes defined by the Board of Directors, such as
retention.
The Board of Directors has the right to revise the targets set in the incentive plans, deviate from
the payment based on achievement of the set earnings criteria, or to discontinue any ongoing
incentive plan.
The share plans under the LTI arrangement are accounted for as equity-settled arrangements.
The participants receive the earned reward in shares. The reward is recognised as an expense
during the earnings period with a corresponding increase in equity. The social charges related to
the arrangement payable by the employer are accrued as a liability. The liabilities for share-
based plans including social charges at the end of the year 2024 was EUR 8 million (2023: 9),
including EUR 7 million (2023: 8) recorded in equity.
At year end 2024, approximately 120 key employees are participants in at least one of the
ongoing LTI plans.
142
Shares granted
The following table presents changes in the number of share awards:
Number of shares
2024
2023
1 January
1,458,811
1,396,189
Granted
1,117,235
781,214
Settled
-52,292
-86,287
Expired or forfeited
-472,431
-632,305
Outstanding 31 December
2,051,323
1,458,811
Expired or forfeited shares included in 2023 the impact from the remuneration restrictions of
Fortum Leadership Team members according to the terms of the Solidium bridge financing
facility with the Finnish state as well as the impact of FLT members voluntarily waiving the
shares not subject to those restrictions.
10.3 Employee Share Savings programme
The objective of Fortum's Employee Share Savings (ESS) programme is to motivate employees
to invest in Fortum shares and retain ownership in the company.
The programme consists of annually commencing savings periods and the annual launch of each
period is separately resolved by the Board of Directors. The participants of the programme
invest a part of their monthly salary in Fortum shares, and based on this investment they will, as
a gross reward, be granted one matching share for each two purchased savings shares after
approximately three years from the beginning of the respective savings period. The
prerequisites for receiving matching shares are that the participant holds the purchased savings
shares until the end of the holding period, and that his or her employment has not ended before
the end of the holding period.
Each plan consists of one-year savings period followed by two-year holding period. Shares are
purchased quarterly with the accumulated savings at the market price, after the release of
Fortum’s interim reports. The programme is accounted for as an equity-settled transaction, and
the cost related to matching shares is recognised as an expense during the vesting period.
10.4 Fortum Personnel Fund
The Fortum Personnel Fund (for employees in Finland only) has been in operation since 2000.
The Board of Directors determines the criteria for the fund’s annual profit-sharing bonus.
Members of the personnel fund are the permanent and fixed-term employees of the Group.
The profit-sharing received by the fund is distributed equally between the members. Each
employee’s share is divided into a tied amount and an amount available for withdrawal. It is
possible to transfer a maximum of 15% of capital from the tied amount to the amount available
for withdrawal each year.
The fund’s latest financial year ended at 30 April 2024 and the fund then had a total of 2,794
members (2023: 2,611). In the end of April 2024 Fortum contributed EUR 1.2 million (2023: 0.0) to
the personnel fund as an annual profit-sharing bonus based on the financial results of 2023. The
combined amount of members’ shares in the fund was EUR 18 million (2023: 16).
10.5 The President and CEO and the Fortum Leadership Team
remuneration
In the end of 2024 Fortum Leadership Team consists of eleven members, including the President
and CEO. The following table presents the total remuneration of the President and CEO and the
FLT and takes into account the changes in FLT during the year. The expenses are shown on
accrual basis.
On 6 September 2022, Fortum announced that it had agreed with the Finnish State on a bridge
financing arrangement. In accordance with the Solidium bridge financing facility with the Finnish
State, Fortum Leadership Team members are not be paid any short- or long-term incentives
accumulated in 2022 and 2023, nor could they participate in 2023 ESS plan. In addition, FLT
members have also voluntarily waived the shares that are not subject to restrictions of the
bridge financing facility and that were scheduled for delivery in spring 2024, thus no shares were
delivered in 2024. However, costs for these plans were accrued over the vesting period. In 2023
2,677 shares (net) were delivered to one FLT member based on participation in the restricted
share plan 2020–2022 and the executive agreement.
In 2024, with regard to 2022 Employee Share Savings plan, 599 (2023: 628) matching shares
were delivered to FLT members.
Management remuneration
2024
2023
EUR thousand
Markus
Rauramo,
President and
CEO
Other FLT
members
Markus
Rauramo,
President and
CEO
Other FLT
members
Salaries and fringe benefits
1,586
3,844
1,613
3,369
Short-term incentives
239
660
0
0
Long-term incentives
459
668
798
1,134
Pensions (statutory)
296
776
280
619
Pensions (voluntary)
315
718
315
830
Social security expenses
42
273
58
194
Total
2,937
6,938
3,064
6,146
143
The annual defined contribution for the President and CEO Markus Rauramo's supplementary
pension arrangement is 20% of the annual fixed compensation. The annual fixed compensation
consists of base salary and fringe benefits. The President and CEO's retirement age is
determined in accordance with the Finnish Employees’ Pension Act. In case his managing
director service agreement is terminated before the retirement age, the President and CEO is
entitled to retain the funds that have accrued in the pension arrangement up to that time.
Retirement age of other members of FLT is typically determined in accordance with the local
legislation. Additionally, for three members the retirement age is 63. According to Group policy,
all new supplementary pension arrangements are defined contribution plans. In general FLT
members have supplementary defined contribution pension plan, except for two members who
are in the Fortum Pension Fund (defined benefit plan). The pension premium for supplementary
defined contribution plan for FLT members is 20% of the annual base salary. In the end of 2024,
a pension liability of EUR 222 thousand (2023: 270) was recognised on the balance sheet related
to the defined benefit plans.
In the event that Fortum decides to give notice of termination to the President and CEO, he is
entitled to the salary for the notice period (6 months) and a severance pay equal to 6 months’
salary. For other FLT members, the notice period for both parties is 6 months, and in case the
company terminates the contract, members are usually entitled to the salary for the notice
period and a severance pay equal to 6 months’ salary.
10.6 Board of Directors and management shareholding
On 31 December 2024, the members of the Board of Directors owned a total of 48,015 shares
(2023: 30,334), which corresponds to 0.01% (2023: 0.00%) of the company’s shares and voting
rights.
Number of shares held by members of the Board of Directors
2024
2023
Board members at 31 December 2024
Mikael Silvennoinen, Chair
13,515
9,497
Essimari Kairisto, Deputy Chair
5,360
2,872
Ralf Christian
4,050
2,270
Luisa Delgado
4,050
2,270
Jonas Gustavsson
3,065
1,285
Marita Niemelä
3,065
1,285
Teppo Paavola
8,780
7,000
Johan Söderström
3,065
1,285
Vesa-Pekka Takala
3,065
1,285
Former Board members
Maija Strandberg
N/A
1,285
Total
48,015
30,334
The President and CEO and other members of the FLT owned a total of 229,623 (2023: 223,463),
which corresponds to approximately 0.03% (2023: 0.02%) of the company’s shares and voting
rights.
Number of shares held by members of the Fortum Leadership Team
2024
2023
FLT members at 31 December 2024
Markus Rauramo
115,997
115,162
Nebahat Albayrak
3,557
3,438
Eveliina Dahl
3,414
2,859
Bernhard Günther
1,392
767
Mikael Lemström
15,155
15,021
Petra Lundström
14,314
13,617
Simon-Erik Ollus
7,664
6,838
Mikael Rönnblad
20,887
20,685
Nora Steiner-Forsberg
2,091
1,615
Peter Strannegård
4,380
3,292
Tiina Tuomela
40,772
40,169
Total
229,623
223,463
144
10.7 Board remuneration
The Board of Directors comprises five to ten members who are elected at the Annual General
Meeting for a one-year term of office, which expires at the end of the first Annual General
Meeting following the election. The Board of Directors consists of nine members at the end of
2024.
The Annual General meeting confirms the yearly compensation for the Board of Directors. Board
members are not offered any long-term incentive benefits or participation in other incentive
schemes. There are no pension arrangements for the Board members. Social security costs in
2024 were EUR 51 thousand (2023: 39).
Fees for the Board of Directors
EUR thousand
2024
2023
Annual fee for the Board work
Chair
128.2
88.8
Deputy Chair
79.4
63.3
Chair of the Audit and Risk Committee 1) 2)
N/A
63.3
Members
56.8
43.1
Fixed fee for the Committee work
Chair of the Audit and Risk Committee 1) 2)
22.6
N/A
Member of the Audit and Risk Committee
5.4
3.0
Chair of the People and Remuneration Committee 1)
22.6
5.0
Member of the People and Remuneration Committee
5.4
2.0
Chair of the Technology and Investment Committee 1)
22.6
5.0
Member of the Technology and Investment Committee
5.4
2.0
1)If simultaneously the Chair or Deputy Chair of the Board, the fixed fee of a Committee member is paid.
2)From 2024 onwards, the fee for Chair of the Audit and Risk Committee is paid as fixed fee for Committee work instead of
annual fee.
For Chair or member of any additional Committee established by a Board decision, only meeting
fees are paid.
Every member of the Board of Directors receives a fixed annual fee for the Board work and a
meeting fee for each meeting attended. The annual fee for the Board work is paid in company
shares and in cash in such a way that approximately 40% of the amount of the annual fee is
payable in shares acquired on behalf and in the name of the Board members, and the remainder
in cash. The company pays the costs and the transfer tax related to the purchase of the
company shares.
A meeting fee of EUR 1,000 is paid for Board and Committee meetings, or EUR 2,000 in case the
member travels to the meeting outside his/her country of residence. When a member
participates in the meeting via remote connection, or for the decisions that are confirmed
without convening a meeting, the meeting fee will be EUR 1,000. Fixed fees for the Committee
work and the meeting fees are paid fully in cash.
The travel expenses of Board members are compensated in accordance with the company’s
travel policy.
Compensation for the Board of Directors
EUR thousand
2024
2023
Board members at 31 December 2024
Mikael Silvennoinen
Chair from 13 April 2023, Chair of the People and
Remuneration Committee
167
125
Essimari Kairisto
Deputy Chair from 13 April 2023, Chair of the Audit and
Risk Committee
118
107
Ralf Christian
Chair of the Technology and Investment Committee
109
87
Luisa Delgado
91
73
Jonas Gustavsson
Member of the Board from 13 April 2023
90
69
Marita Niemelä
Member of the Board from 13 April 2023
82
59
Teppo Paavola
94
78
Johan Söderström
Member of the Board from 13 April 2023
79
57
Vesa-Pekka Takala
Member of the Board from 13 April 2023
83
67
Former Board members
Anja McAlister
Deputy Chair until 13 April 2023
N/A
5
Veli-Matti
Reinikkala
Chair until 13 April 2023
N/A
10
Philipp Rösler
Member of the Board until 13 April 2023
N/A
4
Maija Strandberg
Member of the Board from 13 April 2023 - until 25 March
2024
5
78
Annette Stube
Member of the Board until 13 April 2023
N/A
11
Kimmo Viertola
Member of the Board until 13 April 2023
N/A
6
Total
916
836
145
11 Finance costs – net
EUR million
Note
2024
2023
Interest expense
Borrowings
-233
-286
Leasing and other interest expenses
-3
-2
Capitalised borrowing costs
18
10
20
Total
-226
-269
Interest income
Loan receivables and deposits
189
153
Other interest income 1)
45
12
Total
234
165
Other financial items – net
Return from nuclear fund
29
85
31
Nuclear fund adjustment
40
34
Unwinding of nuclear provisions
-38
-63
Fair value changes, impairments and reversals
-27
-3
Unwinding of discounts on other provisions and pension obligations
30, 31
1
0
Other financial expenses and income
-13
-33
Total
47
-34
Finance costs – net
55
-138
EUR million
2024
2023
Finance costs – net
55
-138
Adjustments to finance costs – net
Return from nuclear fund
-85
-31
Nuclear fund adjustment
-40
-34
Unwinding of nuclear provisions
38
63
Fair value changes, impairments, reversals and other adjustments 1)
-5
3
Comparable finance costs – net
-36
-137
1)Other adjustments in 2024 include EUR 19 million interest income from tax authorities on tax payment and EUR 13 million
interest income from a settlement of a commercial dispute. See Note 37 Legal actions and official proceedings.
See Definitions and reconciliations of key figures.
Interest expenses on borrowings totalled EUR 233 million (2023: 286) including interest
expenses on loans of EUR 211 million (2023: 246), and EUR 22 million (2023: 40) interest cost –
net from derivatives hedging the loan portfolio. In 2023 interest expenses on loans included EUR
41 million relating to the Finnish State bridge financing.
Interest income on loan receivables and deposits, EUR 189 million (2023: 153), includes EUR 162
million (2023: 133) from deposits and cash, and EUR 27 million (2023: 21) interest income from
shareholder loan receivables and other loan receivables. Other interest income EUR 45 million
(2023: 12) includes EUR 19 million interest income from tax authorities on tax payment, EUR
13 million interest income from a settlement of a commercial dispute and EUR 13 million
mainly from commodity trading collaterals.
Return from nuclear fund, nuclear fund adjustment and unwinding of nuclear provisions relate to
the Loviisa nuclear plant. For additional information see Note 29 Nuclear-related assets and
liabilities.
Other financial expenses and income were EUR -13 million (2023: -33), In 2023 other financial
expenses included EUR -15 million costs relating to the Finnish State bridge financing.
Interest rate and currency derivatives in finance costs – net
EUR million
2024
2023
Interest rate and cross currency swaps
Interest expenses on borrowings
-10
-7
Exchange rate difference from derivatives
5
-1
Rate difference in fair value gains and losses on financial instruments 1)
15
40
Total fair value change of interest rate derivatives in finance costs - net
10
31
Foreign exchange derivatives
Interest expenses on borrowings
-12
-33
Exchange rate difference from derivatives
145
-156
Rate difference in fair value gains and losses on financial instruments
1
5
Total fair value change of currency derivatives in finance costs - net
134
-184
Total
144
-153
1)Fair value gains and losses on financial instruments include fair value change of hedging derivatives in fair value hedge
relationship to EUR 15 million (2023: 41).
146
12 Income tax expense
12.1 Profit before tax by country
EUR million
2024
2023
Finland
528
934
Sweden
309
652
Poland
85
-66
Ireland
233
-51
Netherlands
265
160
Other
-21
-45
Total
1,399
1,583
Profit before tax by country represents the respective countries’ part of total profit before tax
for Fortum Group according to IFRS, based on the same accounting principles as consolidated
financial statements. This means that the respective country profits include items such as share
of profits from associates and joint ventures, effects of accounting for derivatives under IFRS
standards and other group-level consolidation adjustments, which are not included in taxable
profits in the local subsidiaries.
12.2 Major components of income tax expense by country
EUR million
2024
2023
Current taxes
Finland
-126
-157
Sweden
-88
-122
Poland
-13
-6
Ireland
0
0
Netherlands
-2
-2
Other
-9
-6
Total
-238
-293
Deferred taxes
Finland
11
-13
Sweden
22
-3
Poland
-9
35
Ireland
-36
163
Netherlands
-20
36
Other 1)
18
32
Total
-14
249
Adjustments recognised for current tax of prior periods
Finland
11
-8
Sweden
0
0
Poland
3
-18
Ireland
0
0
Netherlands
0
1
Other
0
0
Total
13
-25
Income tax expense
-239
-69
1) Includes tax rate differential on interest on group internal loan treated as equity.
147
12.3 Income tax rate reconciliation
The table below explains the difference between the enacted tax rate in Finland compared to
the tax rate in the consolidated income statement.
EUR million
2024
%
2023
%
Profit before tax
1,399
1,583
Tax calculated at nominal Finnish tax rate
-280
20.0
-317
20.0
Differences in tax rates in other jurisdictions
4
-0.3
-16
1.0
Tax exempt capital gains
47
-3.4
1
0.0
Other items impacting comparable tax expense
-3
0.2
225
-14.2
Tax exempt income and other non-deductible
expenses
4
-0.3
10
-0.6
Share of profit of associates and joint ventures
3
-0.2
12
-0.8
Tax effects of changes in value and non-
recognition of deferred taxes
-5
0.4
-5
0.3
Other items
-3
0.2
20
-1.2
Adjustments recognised for taxes of prior periods
-5
0.4
2
-0.2
Income tax expense
-239
17.1
-69
4.3
Key tax indicators:
• The weighted average applicable income tax rate for 2024 is 19.7% (2023: 21.0%).
• The effective income tax rate in the income statement for 2024 is 17.1% (2023: 4.3%).
• The comparable effective income tax rate for 2024 is 19.1% (2023: 19.1%).
See Note 7 Comparable operating profit and comparable net profit and Definitions and
reconciliations of key figures.
The major items affecting the effective income tax rate are as follows:
• Tax exempt capital gains mainly generated from the divestment of the recycling and waste
business in 2024 reduced the rate by 3.4% (2023: 0.0%)
• Other items impacting comparable tax expense in 2024 are primarily related to the
impairment of shares in the Netherlands. In 2023, items impacting comparable tax expense
were mainly realised in Ireland and the Netherlands as a consequence of the write-down of
Russia-related loans, which led to an increase in the deferred tax asset on tax loss
carryforward in Ireland. These items decreased the rate by 0.2% (2023: 14.2%).
• Other items include EUR 8 million related to the tax rate differential on interest on group
internal loan treated as equity, being interest income in Ireland at 12.5% and the corresponding
interest expense taxable at 20% in Finland. The item decreased the rate by 0.6% (2023: 1.5%).
12.4 Reconciliation of comparable income taxes
EUR million
2024
2023
Income tax expense
-239
-69
Adjustments to income tax expense
20
-201
Comparable income tax expense
-219
-269
12.5 Pillar Two model rules
The Group is within the scope of the OECD Pillar Two model rules for global minimum tax. Pillar
Two legislation was enacted in Finland, domicile of Fortum Oyj and came into effect from 1
January 2024. This legislation was also enacted or substantially enacted as of 2024 in the
following Fortum’s operative countries: Sweden, the Netherlands, Ireland, Denmark, Belgium,
the United Kingdom, Switzerland, Spain, France, Germany and Norway.
Under the legislation, the Group is liable to pay a top-up tax for the difference between its so
called GloBE effective tax rate per jurisdiction calculated based on Pillar Two rules and the
defined 15% minimum rate, if the Transitional Safe Harbour rules included in Pillar Two legislation
are not met.
According to Fortum's assessment there is no material impact from Pillar Two in 2024.
148
13 Earnings and dividend per share
ACCOUNT POLICIES
EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the net profit attributable to the owners of
the parent company by the weighted average number of ordinary shares in issue during the
year, excluding ordinary shares purchased by the Group and held as treasury shares.
DIVIDENDS
Dividends proposed by the Board of Directors are not recognised in the financial statements
until they have been approved by the company's shareholders at the Annual General Meeting.
13.1 Earnings per share
Earnings per share, basic
2024
2023
Profit attributable to owners of the parent, continuing operations (EUR million)
1,164
1,514
Profit attributable to owners of the parent, total Fortum (EUR million)
1,164
-2,069
Weighted average number of shares (thousand)
897,264
897,264
 
Basic earnings per share, continuing operations (EUR)
1.30
1.68
Basic earnings per share, total Fortum (EUR)
1.30
-2.31
As Fortum currently has no dilutive instruments outstanding, diluted earnings per share is the
same as basic earnings per share.
Comparable earnings per share
2024
2023
Comparable net profit, continuing (EUR million)
900
1,150
Comparable net profit, total Fortum (EUR million)
900
1,184
Weighted average number of shares (thousand)
897,264
897,264
 
Comparable earnings per share, continuing operations (EUR)
1.00
1.28
Comparable earnings per share, total Fortum (EUR)
1.00
1.32
See Definitions and reconciliations of key figures.
13.2 Dividend per share
The Board of Directors proposes that a dividend of EUR 1.40 per share be paid for the financial
year 2024. The proposed dividend of EUR 1.40 per share comprises EUR 0.90 which corresponds
to 90% payout of the Group’s comparable earnings per share (EPS) of EUR 1.00 and EUR 0.50 as
a special dividend. Based on the number of shares registered as at 10 February 2025, the total
amount of dividend would be EUR 1,256 million. These Financial statements do not reflect this
dividend.
A dividend for 2023 of EUR 1.15 per share, amounting to a total of EUR 1,032 million, was decided
in the Annual General Meeting on 25 March 2024. The dividend was paid in two instalments. The
first dividend instalment of EUR 0.58 per share was paid on 5 April 2024, amounting to a total of
EUR 520 million. The second dividend instalment of EUR 0.57 per share, amounting to a total of
EUR 511 million, was paid on 9 October 2024.
A dividend for 2022 of EUR 0.91 per share, amounting to a total of EUR 817 million, was decided
in the Annual General Meeting on 13 April 2023. The dividend was paid in two instalments. The
first dividend instalment of EUR 0.46 per share was paid on 24 April 2023, amounting to a total
of EUR 413 million. The second dividend instalment of EUR 0.45 per share, amounting to a total
of EUR 404 million, was paid on 10 October 2023.
149
14 Additional cash flow information
14.1 Change in financial net debt
EUR million
Note
2024
2023
Financial net debt, beginning of the period
942
1,084
Russia impact on Financial net debt, beginning of the period
—
43
Financial net debt excl. Russia, beginning of the period
942
1,127
Net cash flow:
Comparable EBITDA
1,556
1,903
Non-cash and other items
-89
129
Paid net financial costs and dividends received
25
-59
Income taxes paid
-196
-454
Change in working capital
95
191
Capital expenditures
-472
-576
Acquisitions
-33
-53
Divestments and proceeds from sale of property, plant and equipment
767
17
Change in interest-bearing receivables
-44
22
Dividends to the owners of the parent
-1,032
-817
Other financing activities
2
19
Net cash flow, continuing operations ('-' increase in financial net debt)
580
322
Foreign exchange rate differences and other changes
5
137
Financial net debt, end of the period
27
367
942
14.2 Additional cash flow information
Non-cash and other items
Non-cash and other items EUR -89 million (2023: 129) mainly relate to realised foreign exchange
gains and losses EUR -78 million (2023: 186) and change in liability to return emission rights
EUR -8 million (2023: -32) offset by EUR 58 million income from a settlement of a commercial
dispute. In 2023 non-cash and other items included also paid commitment fee for Solidium
bridge loan facility EUR ‑39 million.
Change in working capital
EUR million
2024
2023
Change in interest-free receivables, decrease(+)/increase(-)
243
348
Change in inventories, decrease(+)/increase(-)
-17
-14
Change in interest-free liabilities, decrease(-)/increase(+)
-131
-143
Total
95
191
Capital expenditure in cash flow
EUR million
Note
2024
2023
Capital expenditure
17, 18
483
611
Change in not yet paid investments, decrease(+)/increase(-)
-2
-16
Capitalised borrowing costs
-10
-20
Total
472
576
Acquisition of shares in cash flow
Acquisition of shares, net of cash acquired, amounted to EUR 33 million (2023: 53). In 2023
Fortum acquired the Swedish electricity solutions provider Telge Energi AB. For further
information see Note 3 Acquisitions, disposals and discontinued operations.
Divestment of shares in cash flow
EUR million
Note
2024
2023
Proceeds from sales of subsidiaries, net of cash disposed
3
726
1
Proceeds from sales and capital returns of associates and joint ventures
3, 19
38
0
Proceeds from sales of other investments
3
0
3
Total
764
5
In 2024, Fortum completed the divestment of its recycling and waste business to Summa Equity.
The net cash flow received from the transaction was approximately EUR 720 million. Fortum
concluded also the sale of the remaining 43.75% share of its 185 MW Indian solar power
portfolio. The total proceeds was EUR 33 million.
There were no material divestments during 2023.
For further information, see Note 3 Acquisitions, disposals and discontinued operations.
150
15 Financial assets and liabilities by categories
ACCOUNTING POLICIES
FINANCIAL ASSETS
Fortum classifies its financial assets in the following categories according to IFRS 9: financial
assets at amortised cost, financial assets at fair value through profit or loss and financial
assets at fair value through other comprehensive income. The classification is made at initial
recognition and depends on the financial asset's contractual cash flow characteristics and the
Group's business model for managing them. 
In order for the financial asset to be classified and measured at amortised cost or fair value
through other comprehensive income, it needs to give rise to cash flows that are solely
payments of the principal and interest on the principal amount outstanding (SPPI). This
assessment is referred to as the SPPI test and is performed at an instrument level. When the
SPPI criteria is not met, financial assets are classified to fair value through profit or loss
category. 
Financial assets are presented as non-current assets unless they are held for trading, expected
to be realised within 12 months at the closing date or they have a maturity of under 12 months
at closing date. These are classified as current assets.
FINANCIAL ASSETS AT AMORTISED COST
Fortum measures financial assets at amortised cost when the financial asset is included in the
held-to-collect business model with fixed or determinable payments that are payments of
amount outstanding or interest on it. They arise when the Group provides money, goods or
services directly to a debtor. Financial assets at amortised cost include non-derivative financial
assets with fixed or determinable payments that are not quoted in an active market. 
Financial assets at amortised cost are subject to impairment using expected credit loss (ECL)
model. Gains and losses from derecognition of the asset are recognised in profit and loss. 
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Financial assets at fair value through profit or loss include financial assets held for trading in
the short term, financial assets designated upon initial recognition irrevocably as fair value
through profit or loss and financial assets mandatorily recognised at fair value through profit or
loss according to IFRS 9. Derivatives are classified as held for trading unless they are
designated as effective hedging instruments.
Gains and losses arising from changes in the fair value are included in the income statement in
the period in which they arise.
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
Other equity investments designated at fair value through other comprehensive income are
not subject to impairment assessment and accumulated reserves are not recycled to profit or
loss upon derecognition. Dividends received are recognised in profit and loss. 
DERECOGNITION
Fortum derecognises financial assets when the rights to receive cash flows from the assets
have expired or when it has substantially transferred the risks and rewards of the assets
outside of the Group. 
IMPAIRMENT
Fortum recognises an allowance for expected credit losses (ECL) according to IFRS 9 for
financial assets measured at amortised cost. See further information on ECL in Note 4.4.1
Credit quality of major financial assets and in Note 24 Trade and other receivables.
Financial assets measured at fair value through profit or loss are not included in ECL
assessment as they are already measured at fair value. A financial asset is written-off when
there is no reasonable expectation of recovering the contractual cash flows. 
FINANCIAL LIABILITIES
All financial liabilities are recognised initially at fair value. In the case of loans and borrowings
and payables, incurred transaction costs are deducted. In subsequent periods, all financial
liabilities, except derivatives and financial liabilities which the Group has at initial recognition
irrevocably designated at fair value through profit or loss, are stated at amortised cost; any
difference between proceeds (net of transaction costs) and the redemption value is
recognised as interest cost over the period of the borrowing using the effective interest rate
method. 
Derivative financial instruments entered into by the Group, that are not designated as hedging
instruments are classified as liabilities at fair value through profit and loss. Amortisation of the
effective interest rate and gains and losses of liabilities are recognised in the income
statement. 
Group’s financial liabilities include trade and other payables, loans and borrowings and
derivative financial instruments. Borrowings or portion of borrowings being hedged with a fair
value hedge are recognised at fair value through profit or loss. Derecognition of financial
liabilities takes place when the Group has fulfilled the contractual obligations.
ACCOUNTING FOR DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
Within the ordinary course of business, the Group routinely enters into sale and purchase
transactions for commodities. Contracts that were entered into and continue to be held for the
purpose of receipt or delivery of the commodity in accordance with the Group's expected sale,
purchase or usage requirements are not within the scope of IFRS 9 ("own use exemption").
Physical contracts to buy or sell a non-financial item, which are fair valued using the fair value
151
option to off-set accounting mismatch, or where own use exemption or hedge accounting
cannot be applied are fair valued through the income statement. 
The Group trades derivatives through exchanges, in which derivatives are cleared through
central clearing parties (CCPs) or clearing banks, as well as over-the-counter (OTC), concluded
directly between counterparties. Trading derivatives through exchanges requires the
exchange of cash (margining payments) with a CCP or clearing bank to cover market risk in the
case of a member default. See further information in Note 4.2 Liquidity and refinancing risk and
in Note 4.4 Credit risk. Exchange-traded derivatives are accounted for either as collateralised-
to-market (CTM) or settled-to-market (STM) derivatives depending on the contractual right
and obligations associated with the variation margin settlement payments. For CTM
derivatives the variation margins paid or received are recognised as collaterals and included
within margin receivables and liabilities in the balance sheet. Accordingly, the paid or received
variation margin of CTM derivatives constitute a separate unit of account from the derivative
contracts which are recognised at fair value in the balance sheet. For STM derivatives, the
variation margins paid or received are accounted for as settlements of the derivative contracts
fair value. Consequently, the fair value of STM derivative contracts in the balance sheet is zero.
The initial margins of STM and CTM derivatives are included within margin receivables and
liabilities. Currently, the majority of exchange-traded derivatives are treated as CTM
derivatives whereas the amount of STM derivatives is immaterial.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into
and are subsequently remeasured at their fair value. Gains and losses resulting from the initial
fair value measurement of a derivative (“day one” gains and losses) are eliminated against the
corresponding derivative asset or liability, if the initial fair value is determined based on
valuation model with input parameters that are unobservable from active markets. For
derivatives whose initial fair value is evidenced by a quoted price in an active market for an
identical contract or based on a valuation technique that uses only data from observable
markets, gains and losses from the initial measurement are accounted for similarly to gains or
losses on the subsequent measurement.
The method of recognising the resulting gain or loss on the subsequent measurement depends
on whether the derivative is designated as a hedging instrument eligible for hedge accounting,
and if so, the nature of the item being hedged. The Group designates certain derivatives as
either: (1) hedges of highly probable forecast transactions (cash flow hedges); (2) hedges of
the fair value of recognised assets or liabilities, or unrecognised firm commitments (fair value
hedge); or (3) hedges of net investments in foreign operations.
The Group documents at the inception of the transaction the relationship between hedging
instruments and hedged items, whether the hedged item is one or several risk components
separately or in aggregation, as well as its risk management objective and strategy for
undertaking various hedge transactions. When applying hedge accounting the Group also
documents its assessment, of whether the derivatives that are used in hedging transactions
are meeting the hedge accounting effectiveness criteria: (1) there is an economic relationship
between the hedged item and the hedging instrument, (2) the effect of credit risk does not
dominate the value changes that result from that economic relationship; and (3) the hedge
ratio of the hedging relationship is the same as applied in the risk management. The Group
also documents its assessment, both at hedge inception and on an ongoing basis, of whether
the derivatives that are used in hedging transactions are highly effective by assessing the
prospective capacity of the derivatives in offsetting changes in fair values or cash flows of
hedged items. Hedge accounting is discontinued only when the hedging relationship ceases to
meet the hedge effectiveness criteria.
CASH FLOW HEDGE
The effective portion of changes in the fair value of derivatives that are designated and qualify
as cash flow hedges are recognised in equity. Gain or loss relating to the ineffective portion is
recognised immediately in the income statement. Amounts accumulated in equity are recycled
in the income statement in the periods when the hedged item will affect profit and loss (e.g.
when the forecasted sale that is hedged takes place). However, when the forecast transaction
that is hedged results in the recognition of a non-financial asset (e.g. inventory) or a liability,
the gains and losses previously deferred in equity are transferred from equity and included in
the initial measurement of the cost of the asset or liability. When a hedge no longer meets the
criteria for hedge accounting, any cumulative gain or loss existing in equity is recognised in the
income statement when the forecast transaction is ultimately also recognised in the income
statement. When a forecasted transaction is no longer expected to occur, the cumulative gain
or loss that was reported in equity is immediately recognised in the income statement.
Fortum hedges its exposure to commodity market risks and applies hedge accounting by risk
components. Hedge accounting is applied to Nordic electricity price risk, where the Nordic
area priced physical electricity delivery is commonly divided into three risk components: (1)
system price risk, (2) electricity price area difference risk (EPAD) and (3) currency risk. For each
of these separate risk components there are specific derivative contracts available, which each
are being effective hedges for the associated risk components. In addition, hedge accounting
is applied to certain gas forward and futures contracts which effectively hedge the cash flows
for future gas deliveries.
FAIR VALUE HEDGE
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are
recorded in the income statement, together with any changes in the fair value of the hedged
asset or liability that are attributable to the hedged risk. 
If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying
amount of a hedged item for which the effective interest method is used is amortised to profit
or loss for the periods until maturity of the hedged item.
152
NET INVESTMENT HEDGING IN FOREIGN OPERATIONS
Hedges of net investments in foreign operations are accounted for similarly to cash flow
hedges. Any gain or loss on the hedging instrument relating to the effective portion of the
hedge is recognised in equity; the gain or loss relating to the ineffective portion is recognised
immediately in the income statement. Gains and losses accumulated in equity are included in
the income statement when the foreign operation is disposed of.
DERIVATIVES THAT DO NOT QUALIFY FOR HEDGE ACCOUNTING
Certain derivative instruments representing economic hedging relationship do not qualify for
hedge accounting. Unrealised fair value changes of non-hedge accounted commodity
derivatives hedging future cash flow and physical contracts that are accounted for as
derivatives within the scope of IFRS 9 are recognised in items affecting comparability in the
income statement. Gains and losses on interest rate and currency derivative instruments are
recognised in finance costs – net with corresponding hedge items.
Financial assets and liabilities in the following tables are split into categories in accordance
with IFRS 9. The categories are further divided into classes which are the basis for valuing a
respective asset or liability.
Financial assets by category 2024
Amortised cost
Fair value through profit or loss
Fair value
through other
comprehensive
income
EUR million
Note
Hedge accounting,
fair value hedges
Non-hedge
accounting
Other
financial assets
Net investment and
Cash flow hedges
Total
financial assets
Financial instruments in non-current assets
Other non-current assets
21
99
139
238
Derivative financial instruments
4
Commodity derivatives
83
79
162
Interest rate and currency derivatives
79
5
21
105
Long-term interest-bearing receivables
22
431
431
Total financial instruments in non-current assets
530
79
87
139
100
935
Financial instruments in current assets
Derivative financial instruments
4
Commodity derivatives
85
264
349
Interest rate and currency derivatives
26
4
30
Trade receivables
24
812
812
Other receivables
24
195
195
Short-term interest-bearing receivables
22
70
213
283
Liquid funds
25
4,136
4,136
Total financial instruments in current assets
5,212
0
111
213
268
5,804
Total
5,742
79
198
352
368
6,739
153
Financial assets by category 2023
Amortised cost
Fair value through profit or loss
Fair value
through other
comprehensive
income
EUR million
Note
Hedge accounting,
fair value hedges
Non-hedge
accounting
Other
financial assets
Net investment and
Cash flow hedges
Total
financial assets
Financial instruments in non-current assets
Other non-current assets
21
78
123
201
Derivative financial instruments
4
Commodity derivatives
42
59
101
Interest rate and currency derivatives
92
2
21
115
Long-term interest-bearing receivables
22
644
644
Total financial instruments in non-current assets
722
92
45
123
80
1,061
Financial instruments in current assets
Derivative financial instruments
4
Commodity derivatives
124
251
375
Interest rate and currency derivatives
7
7
14
Trade receivables
24
1,120
1,120
Other receivables
24
167
167
Short-term interest-bearing receivables
22
64
325
389
Liquid funds
25
4,183
4,183
Total financial instruments in current assets
5,534
0
131
325
257
6,247
Total
6,256
92
176
448
337
7,309
154
Financial liabilities by category 2024
Amortised cost
Fair value through profit or loss
Fair value
through other
comprehensive
income
EUR million
Note
Hedge accounting,
fair value hedges 1)
Non-hedge
accounting
Other financial
liabilities
Net investment
and Cash flow
hedges
Lease liabilities
Total financial
liabilities
Financial instruments in non-current liabilities
Interest-bearing liabilities
27
3,268
990
78
4,336
Derivative financial instruments
4
Commodity derivatives
104
61
165
Interest rate and currency derivatives
54
0
2
56
Total financial instruments in non-current liabilities
3,268
1,044
104
63
78
4,557
Financial instruments in current liabilities
Interest-bearing liabilities
27
200
275
16
492
Derivative financial instruments
4
Commodity derivatives
137
163
300
Interest rate and currency derivatives
22
11
32
Trade payables
33
361
361
Other liabilities
33
136
136
Total financial instruments in current liabilities
697
0
159
275
173
16
1,321
Total
3,965
1,044
263
275
236
94
5,878
1)Fair valued part of bond in fair value hedge relationship.
155
Financial liabilities by category 2023
Amortised cost
Fair value through profit or loss
Fair value
through other
comprehensive
income
EUR million
Note
Hedge accounting,
fair value hedges 1)
Non-hedge
accounting
Other financial
liabilities
Net investment
and Cash flow
hedges
Lease liabilities
Total financial
liabilities
Financial instruments in non-current liabilities
Interest-bearing liabilities
27
3,502
973
97
4,573
Derivative financial instruments
4
Commodity derivatives
49
73
121
Interest rate and currency derivatives
83
2
10
95
Total financial instruments in non-current liabilities
3,502
1,056
50
83
97
4,789
Financial instruments in current liabilities
Interest-bearing liabilities
27
941
376
21
1,337
Derivative financial instruments
4
Commodity derivatives
58
761
819
Interest rate and currency derivatives
232
6
238
Trade payables
33
488
488
Other liabilities
33
213
213
Total financial instruments in current liabilities
1,641
0
290
376
767
21
3,093
Total
5,143
1,056
340
376
849
118
7,882
1) Fair valued part of bond in fair value hedge relationship.
156
16 Financial assets and liabilities by fair value
hierarchy
ACCOUNTING POLICIES
Fair value measurements are classified using a fair value hierarchy i.e. Level 1, Level 2 and Level
3 that reflects the significance of the inputs used in making the measurements.
FAIR VALUES UNDER LEVEL 1 MEASUREMENT HIERARCHY
The fair value of financial assets and liabilities classified as Level 1 is based on unadjusted
quoted prices in active markets at the closing date. Level 1 consist e.g. commodity derivatives
traded in active markets.
FAIR VALUES UNDER LEVEL 2 MEASUREMENT HIERARCHY
The fair value of financial assets and liabilities classified as Level 2 is based on observable input
parameters, which are other than quoted prices. 
The fair value of financial instruments traded in active markets in Level 2 is calculated using
prices derived from quoted market prices at the closing date. Known calculation techniques,
such as estimated discounted cash flows, are used to determine fair value of interest rate and
currency financial instruments. The fair value of interest-rate swaps is calculated as the
present value of the estimated future cash flows. The fair value of forward foreign exchange
contracts is determined using forward exchange market rates at the closing date. Fair values
of options are determined by using option valuation models. The fair value of financial liabilities
is estimated by discounting the future contractual cash flows at the current market interest
rate that is available to the Group for similar financial instruments. The counterparty credit risk
has been taken into account when determining fair value. The credit risk is determined based
on a portfolio valuation in a bilateral approach.
The Group bases the calculation on existing market conditions at each closing date. Financial
instruments used in Fortum are standardised products that are either cleared via exchanges or
widely traded in the market. Credit risk from trading commodity derivatives is mitigated by
clearing trades through exchanges or by limiting trades to OTC counterparties considered to
be creditworthy, or secured by credit worthy guarantees. Financial derivatives are traded with
credit worthy financial institutions with investment grade ratings.
FAIR VALUES UNDER LEVEL 3 MEASUREMENT HIERARCHY
The fair value of financial assets and liabilities classified as Level 3 is based on unobservable
input parameters. 
Level 3 consist mainly investments in unlisted shares classified as other investments for which
the fair value can't be reliably measured and derivative financial instrument for which the fair
value has been determined using valuation techniques with unobservable inputs. The input
parameters of Level 3 of the fair value hierarchy for equity investments are specified taking
into account economic developments and available industry and corporate data. The
counterparty credit risk has been adjusted when determining the fair value.
157
Financial assets
Level 1
Level 2
Level 3
Netting 1)
Total
EUR million
Note
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
In non-current assets
Other investments 2)
21
139
123
139
123
Derivative financial instruments
Commodity derivatives
4
Hedge accounting
3
0
76
59
0
0
0
0
79
59
Non-hedge accounting
6
10
57
14
21
20
0
-1
83
42
Interest rate and currency derivatives
4
Hedge accounting
100
113
100
113
Non-hedge accounting
5
2
5
2
Total in non-current assets
9
10
237
188
159
143
0
-1
405
339
In current assets
Derivative financial instruments
Commodity derivatives
4
Hedge accounting
198
200
184
160
0
0
-117
-110
264
251
Non-hedge accounting
199
408
90
33
0
4
-205
-320
85
124
Interest rate and currency derivatives
4
Hedge accounting
4
7
4
7
Non-hedge accounting
26
7
26
7
Interest-bearing receivables 3)
22, 27
213
325
0
0
213
325
Total in current assets
610
933
304
206
0
4
-322
-430
592
714
Total in assets
619
943
541
394
159
147
-322
-431
997
1,053
1) Receivables and liabilities from electricity and other commodity standard derivative contracts against exchanges with same delivery period are netted.
2)Other investments includes shares in unlisted companies.
3)Interest-bearing receivables, Level 1, include collateral arrangement covering margin requirement.
158
Financial liabilities
Level 1
Level 2
Level 3
Netting 1)
Total
EUR million
Note
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
In non-current liabilities
Interest-bearing liabilities 2)
27
990
973
990
973
Derivative financial instruments
Commodity derivatives
4
Hedge accounting
2
14
59
58
0
0
0
0
61
73
Non-hedge accounting
42
11
51
30
11
9
0
-1
104
49
Interest rate and currency derivatives
4
Hedge accounting
56
93
56
93
Non-hedge accounting
0
2
0
2
Total in non-current liabilities
44
26
1,156
1,156
11
9
0
-1
1,211
1,189
In current liabilities
Interest-bearing liabilities
27
275
376
275
376
Derivative financial instruments
Commodity derivatives
4
Hedge accounting
187
606
93
264
0
0
-117
-110
163
761
Non-hedge accounting
245
238
92
138
6
2
-205
-320
137
58
Interest rate and currency derivatives
4
Hedge accounting
11
6
11
6
Non-hedge accounting
22
232
22
232
Total in current liabilities
432
844
492
1,016
6
2
-322
-430
608
1,432
Total in liabilities
476
870
1,649
2,172
17
11
-322
-431
1,820
2,621
1)Receivables and liabilities from standard electricity and other commodity derivative contracts against exchanges with same delivery period are netted.
2)Fair valued part of bonds when hedge accounting is applied (fair value hedge).
159
At the end of December 2024, the net fair value of commodity derivatives was EUR 46 million,
including assets of EUR 511 million and liabilities of EUR 465 million (2023: EUR -464 million,
including assets of EUR 476 million and liabilities of EUR 940 million). The change from
December 2023 mainly relates to impacts from decreased commodity market prices and
maturity of contracts.
Net fair value amount of interest rate and currency derivatives was EUR 45 million, including
assets EUR 134 million and liabilities EUR 89 million. Fortum has cash collateral agreements with
some counterparties. At the end of December 2024, Fortum had received EUR 69 million and
paid EUR 9 million from foreign exchange and interest rate derivatives under Credit Support
Annex agreements.
There were no transfers in or out of levels 1, 2 or 3 during 2024. Gains and losses of level 3 items
in consolidated income statement are presented mainly in items affecting comparability. See
Note 7 Comparable operating profit and comparable net profit.
Changes in fair value hierarchy Level 3
2024
2023
EUR million
Assets
Liabilities
Assets
Liabilities
Opening balance 1 January
147
11
648
5
Purchases and additions
14
0
17
0
Sales and disposals
0
0
-4
0
Settlements and realised gains/losses in
income statement
-4
-2
-13
-1
Unrealised gains/losses in income statement
2
8
-67
7
Deconsolidation of subsidiary companies 1)
0
0
-433
0
Carrying amount at 31 December
160
17
147
11
1)Deconsolidation of Russian operations in April 2023
160
17 Intangible assets
ACCOUNTING POLICIES
Intangible assets, except goodwill, are stated at historical cost less accumulated amortisation
and impairment losses; and amortised on a straight-line basis over their expected useful lives.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each
closing date. An asset’s carrying amount is written down to its recoverable amount if the
asset’s carrying amount is greater than its estimated recoverable amount. See further
information on the impairment testing in Note 20 Impairment testing.
GOODWILL
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group's
share of net identifiable assets of the acquired subsidiary, associate or joint venture at the
date of acquisition. Goodwill on acquisitions of subsidiaries is included in intangible assets and
tested annually for impairment. Goodwill on acquisition of associates and joint ventures is
included in investments in associates and joint ventures and is tested for impairment as part of
the overall balance. Goodwill is carried at cost less accumulated impairment losses.
Impairment losses on goodwill are not reversed. Gains and losses on disposal of an entity
include the carrying amount of goodwill relating to the entity sold.
RESEARCH AND DEVELOPMENT COSTS
Generally research and development costs are recognised as expense as incurred and
included in other expenses in the consolidated income statement. If certain criteria are met,
development costs are capitalised as intangible assets and depreciated over the period of the
income streams.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS: ASSIGNED VALUES
AND USEFUL LIVES IN ACQUISITIONS
In an acquisition acquired intangible and tangible assets are fair valued and their remaining
useful lives are determined. Management believes that the assigned values and useful lives, as
well as the underlying assumptions, are reasonable. Different assumptions and assigned lives
could have a significant impact on the reported amounts. 
The Group has significant carrying values in property, plant and equipment, intangible assets
and participations in associated companies and joint ventures which are tested for impairment
according to the accounting policy. See further information on the impairment testing in Note
20 Impairment testing.
Goodwill
Other
Total
EUR million
2024
2023
2024
2023
2024
2023
Cost 1 January
249
417
962
929
1,212
1,346
Translation differences and other adjustments
-9
-11
-36
-28
-45
-39
Acquisition of subsidiary companies
0
11
0
14
0
25
Capital expenditure
0
0
80
92
80
92
Disposals
0
0
-22
-16
-22
-16
Deconsolidation of subsidiary companies 1)
-34
-167
-35
-43
-69
-210
Reclassifications
0
0
8
14
8
14
Cost 31 December
207
249
957
962
1,164
1,212
 
Accumulated depreciation 1 January
0
167
569
521
569
689
Translation differences and other adjustments
0
0
-26
-17
-26
-17
Disposals
0
0
-21
-15
-21
-15
Deconsolidation of subsidiary companies 1)
0
-167
-24
-25
-24
-192
Depreciation for the year
0
0
108
105
108
105
Impairment charges
1
0
8
0
9
0
Accumulated depreciation 31 December
1
0
614
569
615
569
Carrying amount 31 December
206
249
343
393
549
643
1) See Note 3 Acquisitions, disposals and discontinued operations.
In 2023 changes during the year include Russia until 31 March 2023.
Goodwill in groups of cash-generating units
Goodwill is allocated to operating segments corresponding to groups of cash-generating units
that benefit from the synergies of the acquired goodwill. See Note 6 Segment reporting.
EUR million
2024
2023
Consumer Solutions
205
214
Recycling and Waste
0
35
Total
206
249
Other intangible assets
Other intangible assets include customer contracts, and costs for software products and
software licenses.
161
18 Property, plant and equipment and right-of-use
assets
ACCOUNTING POLICIES
Property, plant and equipment mainly include power and heat production-related buildings,
structures and machinery, waterfall rights, and other buildings and machinery.
Property, plant and equipment are stated at historical cost less accumulated depreciation and
impairment losses on the consolidated balance sheet. Historical cost includes expenditure that
is directly attributable to the acquisition of an item. Borrowing costs are included in the cost of
qualified assets. Additionally, the cost of an item of property, plant and equipment includes the
estimated cost of its dismantlement, removal or restoration when there is a contractual
obligation towards a third party, or a legal obligation.
Acquired assets on the acquisition of a new subsidiary are stated at their fair values at the date
of acquisition. 
See Note 30 Other provisions for information about asset retirement obligations, Note 29
Nuclear-related assets and liabilities, for information about provisions for decommissioning
nuclear power plants and Note 34 Leases, for information about right-of-use assets.
Land, water areas and waterfall rights are not depreciated since they have indefinite useful
lives. Depreciation on other assets is calculated using the straight-line method to allocate their
cost to their residual values over their estimated useful lives, as follows:
Hydro power plant buildings, structures and machinery
40–50 years
Thermal power plant buildings, structures and machinery
25 years
Nuclear power plant buildings, structures and machinery
25 years
CHP power plant buildings, structures and machinery
15–25 years
Recycling and waste treatment facility buildings, structures and machinery
15–40 years
Wind power plant structures and machinery
35 years
District heating network
30–40 years
Other buildings and structures
20–40 years
Other tangible assets
20–40 years
Other machinery and equipment
3–20 years
Other non-current investments
5–10 years
Subsequent costs are included in the asset’s carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that future economic benefits associated with
the item will flow to the Group and the cost of the item can be measured reliably. All other
repairs and maintenance expenses are charged to the income statement during the financial
period in which they are incurred.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each
closing date. An asset’s carrying amount is written down to its recoverable amount if the
asset’s carrying amount is greater than its estimated recoverable amount. See further
information on the impairment testing in Note 20 Impairment testing.
BORROWING COSTS
Borrowing costs directly attributable to the construction of qualifying assets are added to the
cost of those assets. Qualifying assets are assets that take a substantial time to get ready for
their intended use or sale.
162
Land and waterfall rights
Buildings and structures
Machinery, equipment and
other
Advances paid and
construction in progress
Total
EUR million
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Cost 1 January
2,433
2,429
2,626
3,406
5,868
7,525
485
513
11,413
13,872
Translation differences and other adjustments
-71
7
-26
-37
-52
-120
-6
0
-155
-150
Capital expenditure 1)
0
6
1
9
2
10
402
515
404
539
Additions to right-of-use assets
4
3
12
13
13
10
0
0
29
27
Decreases in right-of-use assets
-1
0
-1
-2
-1
-1
0
0
-3
-4
Nuclear asset retirement cost
0
0
0
0
31
10
0
0
31
10
Disposals
-1
-7
-22
-19
-74
-42
-3
-3
-99
-69
Deconsolidation of subsidiary companies 2)
-15
-6
-205
-895
-1,127
-1,850
-49
-49
-1,396
-2,800
Reclassifications
1
0
169
151
259
326
-437
-491
-8
-13
Cost 31 December
2,351
2,433
2,555
2,626
4,918
5,868
393
485
10,216
11,413
 
Accumulated depreciation 1 January
7
5
1,447
1,989
3,341
4,612
5
0
4,800
6,606
Translation differences and other adjustments
0
0
-14
-31
-34
-91
0
0
-47
-122
Disposals
0
0
-21
-18
-74
-40
-3
-3
-98
-61
Deconsolidation of subsidiary companies 2)
-2
0
-122
-564
-657
-1,334
0
-1
-780
-1,900
Depreciation for the year
3
2
76
71
190
194
1
9
271
277
Accumulated depreciation 31 December
9
7
1,366
1,447
2,767
3,341
3
5
4,145
4,800
Carrying amount 31 December
2,342
2,425
1,188
1,179
2,151
2,527
390
481
6,070
6,612
1) Includes EUR 1 million (2023: 3) of other asset retirement costs.
2) See Note 3 Acquisitions, disposals and discontinued operations.
In 2023 changes during the year included Russia until 31 March 2023.
Property, plant and equipment that are subject to restrictions in the form of real estate
mortgages amount to EUR 166 million (2023: 163). See Note 36 Pledged assets and contingent
liabilities.
Borrowing costs of EUR 10 million were capitalised in 2024 (2023: 20). The interest rate used for
capitalising borrowing costs varied from 4% to 8% (2023: 2%–8%). For constructions financed by
the Group, a uniform rate may be used based on interest rates of financial liabilities, including
leases.
Property, plant and equipment includes right-of-use assets from leases in which Fortum acts as
the lessee. See Note 34 Leases.
163
Climate-related matters
Economic lives and book values of property, plant and equipment reflect approved actions
towards Fortum’s climate-related targets; as well as maintenance-related capital expenditure to
protect Fortum’s assets towards climate-related risk, such as investments in hydropower plant
dam safety.
Fortum has coal-fired power generation in the Meri-Pori power plant in Finland and the Zabrze
and Czestochowa CHPs in Poland.
Fortum is investing approximately EUR 300 million during 2023–2027 in projects within the
Espoo Clean Heat programme to drive decarbonisation and build sustainable waste heat
solutions in the Helsinki metropolitan area, of which EUR 77 million was capitalised in 2024
(2023: 31). In 2024, the construction of an electric boiler/heat storage began in the Nuijala area
and the construction of heat pumps began in the Kolabacken and Hepokorpi area; and in April
Fortum closed the last coal-fired unit used for district heat production in the Suomenoja CHP.
The closure did not have a material impact on consolidated financial statements.
With regards to the Meri-Pori power plant, the plant’s production capacity is reserved from 1
April 2024 to 31 December 2026 for severe disruption and emergencies to guarantee security of
supply in the electricity system in Finland. The economic life and book value of the Meri-Pori
power plant reflect Fortum’s coal exit plans.
With regards to the Czestochowa CHP, Fortum is investing approximately EUR 100 million in the
plant’s decarbonisation during 2024–2026, of which EUR 3 million was capitalised in 2024.
Fortum will continue evaluating alternatives for the decarbonisation of the Zabrze CHP plant to
initiate a modernisation programme and to meet the coal exit by 2027 target.
To increase low-carbon power generation capacity, Fortum has invested EUR 360 million during
2021–2024 to the Pjelax wind farm in Finland, of which EUR 28 million capitalised in 2024 (2023:
219); and approximately EUR 1,000 million between 2023–2050 on Loviisa, Finland nuclear
power plant lifetime extension, of which EUR 54 million was capitalised in 2024 (2023: 22).
With regards to investments in hydropower modernisation and plant dam safety, Fortum is
investing, for example, in Sweden approximately EUR 59 million (SEK 650 million) for an
extensive rebuild of the Forshuvud hydropower plant during 2021–2025; over EUR 60 million
(SEK 700 million) during 2023–2030 to modernise Untra; as well as approximately EUR 20 million
(SEK 250 million) during 2024–2026 to modernise and increase production capacity at Malta. In
2024, total of EUR 130 million (2023: 103) was capitalised relating to hydro production, mainly
maintenance, legislation and productivity investments.
164
19 Participations in associated companies and joint
ventures
ACCOUNTING POLICIES
The Group’s interests in associated companies and joint ventures are accounted for using the
equity method of accounting. Assets acquired and liabilities assumed in the investment in
associates or joint ventures are measured initially at their fair values at the acquisition date.
The excess of the cost of acquisition over the fair value of the Group’s share of the identifiable
net assets acquired is recorded as goodwill.
The Group’s share of its associates or joint ventures post-acquisition profits or losses after tax,
and the expenses related to the adjustments to the fair values of the assets and liabilities
assumed are recognised in the income statement. The cumulative post-acquisition movements
are adjusted against the carrying amount of the investment. The Group’s share of post-
acquisition adjustments to associates or joint ventures equity that has not been recognised in
the associate’s or joint venture’s income statement, is recognised directly in Group’s
shareholder’s equity, and against the carrying amount of the investment.
When the Group’s share of losses in an associate or a joint venture equals or exceeds its
interest in the associate or joint venture, including any other unsecured receivables, the Group
does not recognise further losses, unless it has incurred obligations or made payments on
behalf of the associate or joint venture.
Material unrealised gains on transactions between the Group and its associates or joint
ventures are eliminated to the extent of the Group’s interest in the associate or joint venture.
Material unrealised losses are also eliminated, unless the transaction provides evidence of an
impairment of the asset transferred. Accounting policies of associates or joint ventures have
been changed where necessary to ensure consistency with the policies adopted by the Group.
If financial information for the reporting period is not available, the share of the profit of certain
associated or joint venture companies is included in the consolidated accounts based on the
latest available information. 
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Management is required to make significant judgements when assessing the nature of
Fortum’s interest in its investees and when considering the classification of Fortum’s joint
arrangements. In the classification, emphasis has been put on decision making, legal structure,
financing and risks of the arrangements.
Management judgement is required when testing the carrying amounts for participations in
associated companies and joint ventures for impairment. See Note 20 Impairment testing for
more information.
19.1 Principal associated companies and joint ventures
Forsmarks
Kraftgrupp AB
Kemijoki Oy
OKG AB
TVO Oyj
Nature of the
relationship
Co-owned
nuclear company
Co-owned 
hydro company
Co-owned
nuclear company
Co-owned
nuclear company
Classification
Associated
company
Associated
company
Associated
company
Joint venture
Segment
Generation
Generation
Generation
Generation
Domicile
Sweden
Finland
Sweden
Finland
Ownership interest, % 1)
26
58
46
26
Votes, %
26
28
46
26
1)Kemijoki and TVO have different series of shares. The ownership interest varies due to the changes in equity assigned to
the different share series. In 2024 there were no changes in the ownership interests in Kemijoki and TVO.
Shareholdings in power production companies
Power plants are often built jointly with other power producers. Under the consortium agreements,
each owner is entitled to electricity in proportion to its share of ownership, or other agreements,
and each owner is liable for an equivalent portion of costs. The production companies are not
profit making, since the owners purchase electricity at production cost, including interest cost and
production taxes. The share of profit of these companies is mainly IFRS adjustments (e.g.
accounting for nuclear-related assets and liabilities) and depreciations on fair value adjustments
from historical acquisitions since the companies are not profit making under local accounting
principles.
Fortum has material shareholdings in such power production companies (mainly nuclear and
hydro) that are consolidated using equity method either as associated companies (Forsmarks
Kraftgrupp AB, Kemijoki Oy and OKG) or as joint venture (Teollisuuden Voima Oyj (TVO)). 
In Sweden, nuclear production company shareholdings are 25.5% ownership of the shares in
Forsmarks Kraftgrupp AB and 45.5% ownership of the shares in OKG AB. Excluding non-
controlling interests in the subsidiaries, Fortum’s participation in the companies are 22.2% and
43.4% respectively, which reflects the share of electricity produced that Fortum can sell further
to the market. The minority part of the electricity purchased is invoiced further to each minority
owner according to their respective shareholding and treated as pass-through.
In Finland, Fortum has an ownership in power production company TVO that has two series of
shares which entitle the shareholders to electricity produced in the different power plants
owned by TVO. Shares in series A entitle to electricity produced in nuclear power plants
165
Olkiluoto 1 and 2 and Fortum owns 26.6% of these shares. Series B entitles to electricity
produced in Olkiluoto 3 and Fortum’s ownership in this share series is 25.0%.
See also Note 29 Nuclear-related assets and liabilities.
The most significant hydro production company shareholding is 63.8% of the hydro shares and
26.7% of the monetary shares in Kemijoki Oy. Each owner of hydro shares is entitled to the
hydropower production in proportion to its hydro shareholding.
Summarised financial information of the principal associated
companies in 2024
EUR million
Forsmarks
Kraftgrupp AB
Kemijoki Oy
OKG AB
Balance sheet
31 Dec 2023
31 Dec 2023
31 Dec 2023
Non-current assets
1,570
487
800
Current assets
1,379
37
185
Non-current liabilities
2,769
323
868
Current liabilities
143
149
104
Equity
38
52
13
Attributable to the owners of the parent
38
52
13
Statement of comprehensive income
1 Jan 2023 -
31 Dec 2023
1 Jan 2023 -
31 Dec 2023
1 Jan 2023 -
31 Dec 2023
Sales
556
97
319
Profit or loss
8
1
1
Attributable to the owners of the parent
8
1
1
Total comprehensive income
8
1
1
Attributable to the owners of the parent
8
1
1
Reconciliation to carrying amount in Fortum Group
Group's interest in the equity of the associate 1 January
8
30
6
Change in share of profit and OCI items
2
0
0
Group's interest in the equity of the associate
31 December
10
30
6
Fair values on acquisitions and different accounting
principles 1)
269
145
-6
Carrying amount 31 December
279
174
0
1) Impact of different accounting principles include mainly IFRS adjustments for nuclear-related assets and liabilities,
capitalised borrowing costs and fair value adjustment for the acquired assets and liabilities. Fortum records its share of
nuclear-related assets and liabilities in its nuclear associated companies according to equity method. The basis for
recognition is similar as for Loviisa power plant, see accounting principles in Note 29 Nuclear-related assets and
liabilities. In 2024 the amount for Forsmark also includes the effect from conversion of shareholder loans to equity.
Summarised financial information of the principal associated
companies in 2023
EUR million
Forsmarks
Kraftgrupp AB
Kemijoki Oy
OKG AB
Balance sheet
31 Dec 2022
31 Dec 2022
31 Dec 2022
Non-current assets
1,907
497
811
Current assets
1,345
12
165
Non-current liabilities
3,108
312
892
Current liabilities
113
145
71
Equity
31
52
13
Attributable to the owners of the parent
31
52
13
Statement of comprehensive income
1 Jan 2022 -
31 Dec 2022
1 Jan 2022 -
31 Dec 2022
1 Jan 2022 -
31 Dec 2022
Sales
596
69
298
Profit or loss
0
1
1
Attributable to the owners of the parent
0
1
1
Total comprehensive income
0
1
1
Attributable to the owners of the parent
0
1
1
Reconciliation to carrying amount in Fortum Group
Group's interest in the equity of the associate 1 January
8
30
6
Change in share of profit and OCI items
0
0
0
Group's interest in the equity of the associate
31 December
8
30
6
Fair values on acquisitions and different accounting
principles 1)
91
147
-6
Carrying amount 31 December
99
176
0
1) Impact of different accounting principles include mainly IFRS adjustments for nuclear-related assets and liabilities,
capitalised borrowing costs and fair value adjustment for the acquired assets and liabilities. Fortum records its share of
nuclear-related assets and liabilities in its nuclear associated companies according to equity method. The basis for
recognition is similar as for Loviisa power plant, see accounting principles in Note 29 Nuclear-related assets and
liabilities.
166
Summarised financial information of the principal joint ventures
2024
2023
EUR million
TVO Oyj
TVO Oyj
Balance sheet
30 Sep 2024
30 Sep 2023
Non-current assets
8,140
8,375
Current assets
1,034
916
of which cash and cash equivalents
366
313
Non-current liabilities
5,956
6,472
of which non-current interest-bearing liabilities
4,658
5,223
Current liabilities
974
579
of which current financial liabilities
704
300
Equity
2,244
2,241
Attributable to the shareholders of the company
2,244
2,241
Statement of comprehensive income
1 Oct 2023 -
30 Sep 2024
1 Jan 2023 -
30 Sep 2023
Sales
990
587
Depreciation and amortisation
-249
-116
Interest income
128
26
Interest expense
-194
-104
Income tax expense or income
0
0
Profit or loss
79
67
Other comprehensive income
-29
-16
Total comprehensive income
50
51
Attributable to the shareholders of the company
50
51
Reconciliation to carrying amount in Fortum Group
Group's interest in the equity of the joint venture at 1 January
572
564
Change in share of profit and OCI items
6
8
Group's interest in the equity of the joint venture 31 December
578
572
Fair values on acquisitions and different accounting principles 1)
-18
-18
Carrying amount 31 December
561
554
1) Impact of different accounting principles include mainly IFRS adjustments for nuclear-related assets and liabilities.
Fortum records its share of nuclear-related assets and liabilities in its nuclear associated companies according to equity
method. The basis for recognition is similar as for Loviisa power plant, see accounting principles in Note 29 Nuclear-
related assets and liabilities.
19.2 Participations in and share of profits from associated
companies and joint ventures
Participations in associated companies and joint ventures on the
balance sheet
EUR million
2024
2023
Principal associates
453
276
Principal joint ventures
561
554
Other associates
52
51
Other joint ventures
194
179
Total
1,260
1,059
Changes in participation during the year
2024
2023
EUR million
Associated
companies
Joint
ventures
Associated
companies
Joint
ventures
Opening balance 1 January
326
733
421
828
Investments
0
19
0
12
Share of profit of associates and joint ventures
-7
26
24
61
Dividend income received
-1
-12
-1
-15
Divestments and capital returns
0
-21
0
0
Deconsolidation of subsidiary companies 1)
0
0
-105
-116
Reclassifications
193
7
-7
0
OCI items in associates and joint ventures
-2
-24
-2
-17
Translation differences and other adjustments
-4
28
-4
-19
Carrying amount at 31 December
505
755
326
733
1) See Note 3 Acquisitions, disposals and discontinued operations.
The reclassifications in 2024 mainly relate to shareholder loans in Forsmark being converted to
equity and thus reclassified to ‘Participations in associates and joint ventures’. This conversion
did not have any cash flow impact.
In 2023 changes during the year included Russia until 31 March 2023. In 2023 Deconsolidation of
subsidiary companies included EUR -221 million related to Russia.
For information about investments and divestments of shares in associated companies and joint
ventures, see Note 3 Acquisitions, disposals and discontinued operations.
167
Share of profit of associates and joint ventures
EUR million
2024
2023
Principal associates
  Forsmarks Kraftgrupp AB
9
17
  Kemijoki Oy
-2
-1
  OKG AB
-17
7
Principal associates, total
-10
23
Principal joint ventures
  TVO Oyj
20
25
Principal joint ventures, total
20
25
Other associates
3
1
Other joint ventures
6
9
Total
19
59
Comparable share of profit of associates and joint ventures
EUR million
2024
2023
Share of profit of associates and joint ventures
19
59
Adjustments to share of profit of associates and joint ventures
-49
-52
Comparable share of profit of associates and joint ventures
-30
7
The comparable share of profits of associates and joint ventures was impacted by updated cost
estimates for the Swedish nuclear waste-related provisions in co-owned nuclear companies.
168
20 Impairment testing
ACCOUNTING POLICIES
The carrying values of goodwill, other intangible assets, property, plant and equipment, right-
of-use assets, and non-financial investments are reviewed regularly for indication of
impairment. 
Indications of impairment are business-specific and are thus analysed separately by each
segment; and include risks, such as changes in electricity and fuel prices, regulatory/political
risks relating to energy taxes, price regulations, limitations to the lifetime of assets as well as
climate-related transition risks and physical risks.
Impairment testing is performed if there is an indication of impairment; and the asset is written
down to its recoverable amount if its carrying amount is greater than the estimated
recoverable amount. 
In addition, goodwill and other intangible assets that have an indefinite useful life, and as such
are not subject to amortisation, are tested annually for impairment, even if there is no
indication of impairment. Impairment testing is performed and documented annually in
connection with the long-term forecasting process.
Annual impairment testing is performed on a cash-generating unit level. Fortum defines cash-
generating unit as the smallest group of assets that generate cash flows that are independent
of the cash flows generated by other assets. 
Goodwill is allocated to cash-generating units that benefit from the synergies of the acquired
goodwill. 
Fortum uses value in use or fair value less cost of disposal to establish the recoverable amount
of cash-generating units. Value in use is determined by discounting future cash flows expected
to be derived from the use of assets. Fair value less cost of disposal represent the market
approach and is determined with a discounted cash flow model, where the assumptions on
cash flows and discount rate are reflecting the market expectations. The carrying amount of
the cash generating units comprises operating assets, including goodwill and fair value
adjustments arising from acquisitions. Non-financial assets, other than goodwill, that have
been impaired in the past are reviewed for possible reversal of impairment at each reporting
date.  
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS: ASSUMPTIONS
RELATED TO IMPAIRMENT TESTING
Impairment testing is forward-looking and requires management to make certain assumptions.
The recoverable amounts of cash-generating units are determined by discounted cash flow
models. The estimated future cash flows are based on the most recent, long-term forecast in
local currency and long-term assumptions approved by management. Cash flows cover an
explicit forecast period of three years.
The period covered by cash flows is related to the useful lives of the assets being reviewed for
impairment. Cash flow projections beyond the explicit forecast period are estimated by
extrapolating projections using a steady or declining growth rate. The growth rate used to
extrapolate the cash flow projections until the end of assets' useful lives is in line with the
assumed inflation, taking into consideration market outlook forecast. 
In measuring value in use cash flows related to future investments, such as new plants, are
excluded. However, if the projects have been started, the cash flows, including the cash
outflows for the investment, are included. 
Preparation of these cash flow estimates requires management to make assumptions relating
to future expectations including the impacts of climate change. Assumptions vary depending
on the business the tested assets are in. Approved actions towards Fortum’s climate targets
are reflected in the assumptions used in the impairment testing.
The discount rates reflect current assessments of the time value of money and relevant market
risk premiums specific to each cash-generating unit, reflecting risks and uncertainties for
which the future cash flow estimates have not been adjusted.
Key assumptions used in impairment testing are presented below, as well as the basis for
determining the value of each assumption. Assumptions are based on internal and external
data that are consistent with observable market information, when applicable.
169
Key assumptions
Basis for determining the value for key assumptions
Power market development
Historical analysis and prospective forecasting
Regulation framework
Current market setup and regulation as well as expected
development based on info given by regulators
Utilisation of power plants and treatment facilities
Past experience, technical assessment and forecasted
market development
Forecasted maintenance investments and
refurbishments
Past experience, technical assessment and planned
maintenance work
Discount rate
Mostly market based information
Annual impairment testing
Annual impairment testing was performed as at 31 December 2024. The recoverable amounts of
the cash generating units were greater than their carrying values and therefore no impairments
were booked.
Fortum generally uses value in use to establish the recoverable amount of cash generating units
and this approach was applied in the impairment testing of Consumer Solutions and Heating and
Cooling Finland, whereas in Heating and Cooling Poland the recoverable amount is defined using
the fair value less cost of disposal approach. 
Heating and Cooling Finland impairment testing includes the cash flows for Espoo Clean Heat
project for which the investment decision was made in June 2023. Espoo Clean Heat drives
decarbonisation and builds sustainable waste heat solutions in the Helsinki metropolitan area
with a target of coal-free district heat production by 2025 and carbon-neutrality before 2030. As
part of a collaboration project with Microsoft, Fortum will capture sustainable waste heat from
their new data centres and use in the district heating.
Fortum has two CHP plants in Poland; Czestochowa CHP plant that uses coal and biomass as an
energy source and a multi-fuel Zabrze CHP plant that uses refuse-derived fuel (RDF) and coal.
Fortum targets to exit coal generation by the end of 2027. In line with this target, Fortum
announced in October 2024 that it will invest approximately EUR 100 million in the Czestochowa
plant’s retrofit. The investment will take place over a period from the fourth quarter of 2024 until
the fourth quarter of 2026. The cash flows in impairment testing reflect this investment. The
detailed coal exit path covering also the Zabrze CHP plant has not been decided upon and thus
the value in use cannot be defined. Recoverable amount is defined based on fair value approach
reflecting external market view. The discount rate used is defined as post-tax.
See allocation of goodwill to cash-generating units in Note 17 Intangible assets. See also Note 2
Critical accounting estimates and judgements.
The discount rates used in impairment testing by cash generating units were as follows:
Discount rate %
2024
2023
Consumer Solutions
pre-tax
12.4
10.8
Heating and Cooling Finland
pre-tax
6.9
7.9
Heating and Cooling Poland
post-tax
8.2
9.8
The Group has considered the sensitivity of key assumptions as part of the impairment testing
for goodwill and indefinite-lived intangible assets. When doing this, any consequential effect of
the change on the other variables has also been considered. The calculations are most sensitive
to changes in estimated future EBITDA levels, and changes in discount rate. Management
estimates that no reasonably possible change in the discount rate used, or in future earnings
would cause the carrying amount to exceed its recoverable amount.
Impairment of the Russian assets in discontinued operations
Fortum’s Russian assets were written down in two stages in 2022 and 2023 following the war in
Ukraine, the consequential geopolitical tensions and seizure of the Russian assets.
As a result of the Presidential decree (No. 302) issued by Russia on 25 April 2023 and the seizure
of Fortum’s Russian assets, the company lost control of its Russian operations. Following the
loss of control, the remaining Russian assets were fully written down in Fortum’s 2023 financials,
resulting in a loss of EUR 1.7 billion in discontinued operations.
Total impairment charges in 2022 for the Russia cash generating unit amounted to EUR 1.7
million.
See also Note 2 Critical accounting estimates and judgements.
170
21 Other non-current assets
EUR million
2024
2023
Other investments
139
123
Interest-free receivables
99
78
Total
238
201
Other investments includes shares in unlisted companies. Interest-free receivables mainly
include prepaid expenses.
22 Interest-bearing receivables
2024
2023
EUR million
Carrying
amount
Fair value 1)
Carrying
amount
Fair value 1)
Long-term loan receivables from associates and
joint ventures
431
431
644
670
Total long-term interest-bearing receivables
431
431
644
670
Collateral arrangement
213
213
325
325
Other short-term interest-bearing receivables
70
70
64
64
Total short-term interest-bearing receivables
283
283
389
389
Total
714
714
1,033
1,059
1)Fair values do not include accrued interest.
Long-term interest-bearing receivables include receivables from associated companies and joint
ventures of EUR 431 million (2023: 644). These receivables include EUR 352 million (2023: 546)
from Swedish nuclear companies, Forsmarks Kraftgrupp AB and OKG AB, which are mainly
funded with shareholder loans, pro-rata to each shareholder’s ownership. The decrease mainly
relates to shareholder loans in Forsmark being converted to equity during 2024 and thus
reclassified to ‘Participations in associates and joint ventures’. This conversion did not have any
cash flow impact.
Other short-term interest-bearing receivables include EUR 62 million (2023: 51) collateral for
default fund. See Note 27 Interest-bearing liabilities.
171
23 Inventories
ACCOUNTING POLICIES
Inventories are stated at the lower of cost and net realisable value being the estimated selling
price for the end product, less applicable variable selling expenses and other production costs.
Cost is generally determined using the weighted average cost method.
EMISSION ALLOWANCES AND RENEWABLE ENERGY CERTIFICATES
Inventories include CO2 emission allowances under EU Emission Trading System (EU ETS) and
renewable energy certificates under compulsory quota obligation schemes or voluntary other
trading schemes incentivising the generation of green energy which are in place in Nordics and
Poland. These systems requires power suppliers to obtain renewable energy certificates to
meet their national obligations or suppliers that sells or uses renewable or nuclear energy in its
marketing to verify the origin and proportion of renewable energy sources. Certificates are
issued to producers of renewable energy. 
CO2 emission allowances in Fortum are used to cover emissions caused by power and heat
production. Currently Fortum receives a share of its CO2 emission allowances for free
according to EU ETS regulation.
Fortum receives the renewable energy certificates for the renewable energy generation in the
Generation segment, but also has quota obligations arising from the retail electricity sales in
the Consumer Solutions segment to return or to cancel renewable energy certificates.
CO2 emission allowances and renewable energy certificates received free of charge are
accounted for at zero nominal value. Purchases of CO2 emissions allowances and renewable
energy certificates which are Fortum's ordinary purchases are accounted for at contracted
purchase price. Purchases of CO2 emission allowances and renewable energy certificates,
which are not Fortum's ordinary expected sales, purchase or usage are accounted for as
derivatives and are recognised at market price applicable at the time of delivery.
CO2 emission cost liability and renewable energy certificate quota obligations are settled by
returning or cancelling the emission allowances and renewable energy certificates. To the
extent that the Group already holds CO2 allowances and renewable energy certificates, the
obligation is measured at the carrying amount of those. Any deficit to cover the settlement
obligation is valued at the current market value of CO2 allowances and renewable energy
certificates. The obligation for these are presented in Other payables with maturity under one
year, see Note 33 Trade and other payables.
The cost for emissions and quota obligation are recognised in the consolidated income
statement within materials and services. Also, purchased CO2 , allowances and renewable
energy certificates are recognised within materials and services, while the corresponding sales
is recognised in net sales. See Notes 6 Segment reporting and 9 Materials and services.
EUR million
2024
2023
Raw materials and supplies
298
256
Emission rights and renewable energy certificates
70
83
Other
53
114
Total
420
452
Raw materials and supplies mainly consist of fuels consumed in the production process, or in the
rendering of services; and include, in particular, uranium, nuclear fuel rods and coal.
172
24 Trade and other receivables
ACCOUNTING POLICIES
Trade receivables comprise revenue from electricity, gas, heat and cooling that has been
delivered, measured, and invoiced, as well as receivables from already delivered but not yet
invoiced energy.
Impairment losses for trade receivables are calculated according to the expected credit loss
(ECL) model. Loss allowances on trade receivables are measured at an amount equal to lifetime
expected credit losses.
An allowance is made on the balance sheet for the expected future credit losses and remains
on the balance sheet until it is written off as a credit loss or reversed. Allowances may remain
on the balance sheet for several years pending the outcome of collection processes and court
proceedings. Write-off policies differ by country depending on local legislation and
assessment of recovery possibilities. For large trade receivables, ECL is calculated for the
individual customer based on the estimated probability of default and expected recovery rate
for the customer. These estimates are derived from available market data when possible, or
based on the customer’s rating. Adjustments are made if there are indications of decreased
creditworthiness, e.g. based on payment behaviour. ECL for trade receivables from small
customers are calculated on portfolio basis by country and business segment. The credit loss
allowances are based on historical analysis of losses when possible, or on average default
rates for customers based on externally available information. These rates are adjusted if there
are any forward-looking indicators showing changes in expected credit losses. Trade
receivables overdue more than 180 days are generally considered to be credit-impaired and
allowances are made for the full amount, adjusted for expected recovery rates.
EUR million
2024
2023
Trade receivables
812
1,120
Accrued income and prepaid expenses
134
72
Other
61
95
Total
1,007
1,286
Change in accrued income and prepaid expenses relates to the short-term receivable from the
Finnish State Nuclear Waste Management Fund, EUR 65 million, see Note 29 Nuclear-related
assets and liabilities. Other category includes mainly other current interest free receivables.
Trade receivables
Ageing analysis of trade receivables
2024
2023
EUR million
Gross
Expected
credit
loss
allowance
Expected
credit
loss rate,
%
Gross
Expected
credit
loss
allowance
Expected
credit
loss rate,
%
Not past due
776
7
1
1,066
12
1
Past due 1–30 days
34
2
6
56
2
4
Past due 31–90 days
4
1
25
6
2
33
Past due 91–180 days
2
1
76
3
3
100
Past due more than 181 days
44
36
83
33
25
76
Total
859
48
6
1,164
44
4
Changes in expected credit loss allowance
EUR million
2024
2023
1 January
44
78
Expected credit loss allowance recognised during the year
5
14
Deconsolidation of subsidiary companies
0
-38
Write-offs
-2
-2
Translation differences and other changes
0
-7
31 December
48
44
Trade receivables by currency (Gross)
EUR million
2024
2023
EUR
272
401
PLN
288
278
SEK
179
257
NOK
120
215
Other
0
13
Total
859
1,164
Trade receivables are arising from a large number of customers mainly in EUR, PLN, SEK and
NOK mitigating the concentration of risk.
For further information regarding credit risk management and credit risks, see Counterparty and
credit risks in the Operating and financial review and Note 4.4 Credit risk.
173
25 Liquid funds
ACCOUNTING POLICIES
Cash and cash equivalents in Liquid funds include cash in hand, deposits held at call with
banks and other short-term, highly liquid investments with original maturities of three months
or less. Cash and cash equivalents, deposits and commercial papers are measured at
amortised cost. 
Drawn amount of bank overdrafts are shown within borrowings in current liabilities on the
balance sheet. Trading-related cash collaterals are included in margin receivables and
otherwise restricted cash is treated as short-term interest-bearing receivables.
EUR million
2024
2023
Cash at bank and in hand
1,713
2,087
Deposits and securities with maturity under 3 months
2,332
2,096
Cash and cash equivalents
4,045
4,183
Deposits and commercial papers with maturity more than 3 months but less than
12 months
90
0
Total
4,136
4,183
The Group’s liquid funds totalled EUR 4,136 million (2023: 4,183). Liquid funds totalling EUR
4,090 million (2023: 4,122) are placed with counterparties that have an investment grade credit
rating.
The average interest rate for the liquid funds was 3.0% at the balance sheet date (2023: 3.9%).
Fortum had undrawn committed credit facilities of EUR 4,000 million, including the Core
revolving credit facility of EUR 2,400 million (EUR 2,206 million from June 2025 onwards), with
maturity in June 2027 and two EUR 800 million bilateral revolving credit facilities with maturity in
June 2026 and January 2027. In addition, Fortum has EUR 100 million committed overdraft limits
that are valid until further notice.
For further information regarding credit risk management and credit risks, see Note 4.4 Credit
risk.
26 Share capital
2024
2023
Number of registered shares at 1 January and 31 December
897,264,465
897,264,465
Share capital, EUR million, 1 January and 31 December
3,046
3,046
Fortum Corporation has one class of shares. By the end of 2024, a total of 897,264,465 shares
had been issued. Each share entitles the holder to one vote at the Annual General Meeting. All
shares entitle holders to an equal dividend. At the end of 2024 Fortum Corporation’s share
capital, paid in its entirety and entered in the trade register, was EUR 3,046,185,953.00.
Fortum Corporation’s shares are listed on Nasdaq Helsinki. The trading code is FORTUM. Fortum
Corporation’s shares are in the Finnish book entry system maintained by Euroclear Finland Ltd.
Details on the President and CEO and other members of the Fortum Leadership Team’s
shareholdings is presented in Note 10 Employee benefits and Board remuneration.
26.1 Authorisations from the Annual General Meeting 2024
In 2024, the Annual General Meeting decided to authorise the Board of Directors to decide on
the repurchase and disposal of the company’s own shares up to 20,000,000 shares, which
corresponded to approximately 2.23% of all the shares in the company. Only the unrestricted
equity of the company can be used to repurchase own shares on the basis of the
authorisation. These authorisations are effective until the next Annual General Meeting and, in
any event, for a period no longer than 18 months. These authorisations had not been used as
per 17 February 2025.
26.2 Convertible bond loans and bonds with warrants
Fortum Corporation has not issued any convertible bonds or bonds with attached warrants,
which would entitle the bearer to subscribe for Fortum shares. The Board of Directors of Fortum
Corporation has no unused authorisations from the General Meeting of shareholders to issue
convertible bond loans or bonds with warrants or increase the company’s share capital.
174
27 Interest-bearing liabilities
Financial net debt
EUR million
2024
2023
+ Interest-bearing liabilities
4,828
5,909
- Liquid funds
4,136
4,183
- Collateral arrangement
213
325
- Margin receivables
205
590
+Margin liabilities
93
131
+/- Net margin liabilities/receivables
-111
-459
Financial net debt
367
942
Interest-bearing liabilities of EUR 4,828 million includes Fortum’s collateral arrangement to the
Nordic Power Exchange totalling EUR 275 million (2023: 376). Equalling amount is included in
short-term interest-bearing receivables of which collateral relating to margin requirement EUR
213 million (2023: 325) is netted from the Financial net debt in the Collateral arrangement row.
However, the collateral for default fund EUR 62 million (2023: 51) is not netted from the Financial
net debt. See Note 22 Interest-bearing receivables.
Interest-bearing liabilities
EUR million
2024
2023
Non-current loans
4,258
4,475
Current loans
476
1,316
Total loans
4,733
5,791
Non-current lease liabilities
78
97
Current lease liabilities
16
21
Total lease liabilities
94
118
Total
4,828
5,909
EUR million
2024
2023
Bonds
2,755
2,736
Loans from financial institutions
374
589
Reborrowing from the Finnish State Nuclear Waste Management Fund
951
951
Lease liabilities
78
97
Other long-term interest-bearing liabilities
178
200
Total long-term interest-bearing liabilities
4,336
4,573
Current portion of loans from financial institutions
17
717
Commercial paper liabilities
105
174
Current portion of lease liabilities
16
21
Collateral arrangement liabilities
350
376
Other short-term interest-bearing liabilities
3
50
Total short-term interest-bearing liabilities
492
1,337
Total
4,828
5,909
Loans
Repricing
EUR million
Effective
interest
rate, %
Carrying
amount
2024
Under
1 year
1–5
years
Over
5 years
Fair
value
2024 5)
Carrying
amount
2023
Fair
value
2023 5)
Bonds
3.1
2,755
0
1,990
765
2,757
2,736
2,729
Loans from financial 
institutions 1)
5.4
390
390
0
0
396
1,306
1,314
Reborrowing from the
Finnish State Nuclear
Waste Management
Fund 2)
4.4
951
951
0
0
953
951
952
Other long-term loans
5.7
179
145
0
34
179
200
199
Total long-term loans 3)
3.7
4,274
1,486
1,990
799
4,284
5,192
5,194
Collateral arrangement
liabilities
2.2
350
350
0
0
350
376
376
Commercial paper
liabilities
3.8
105
105
0
0
105
174
174
Other short-term loans
1.2
3
3
0
0
3
50
50
Total short-term loans
2.6
459
459
0
0
459
599
599
Total 4)
3.6
4,733
1,945
1,990
799
4,743
5,791
5,793
1) Effective interest rate includes periodized cost of undrawn revolving credit facilities.
2)The reborrowing from the Finnish State Nuclear Waste Management Fund includes the part relating to Loviisa nuclear
power plant as well as borrowing done through TVO.
3)Includes current portion of long-term loans of EUR 17 million (2023: 717).
4)The average interest rate on loans and derivatives was 3.8% (2023: 4.3%).
5)Fair values do not include accrued interest.
175
In May, Fortum extended the EUR 800 million bilateral revolving credit facility maturing in June
2025 by one year, with a new maturity date in June 2026.
In June, Fortum signed its first green loan under the company’s Green Finance Framework. The
EUR 300 million green loan is aimed to refinance renewable energy and energy efficiency
projects. The loan period is five years, and it has a one-year extension option by the lender. The
loan partly refinanced a bank loan of EUR 700 million of which Fortum prepaid EUR 400 million in
June. Fortum extended the EUR 2,400 million Core revolving credit facility by two years with new
maturity in June 2027. After the original due date in June 2025 the facility size will be EUR 2,206
million.
In December, Fortum prepaid EUR 500 million bullet loan originally maturing in February 2025
(with one-year Fortum's extension option). Additionally, Fortum signed a new bilateral EUR 800
million revolving credit facility with maturity in January 2027.
Total current loans, EUR 476 million (2023: 1,316), include the current portion of long-term loans,
EUR 17 million (2023: 717), and short-term loans EUR 459 million (2023: 599).
Current portion of long-term loans, EUR 17 million, consist of maturing loans from financial
institutions.
Short-term loans, EUR 459 million, include EUR 350 million collateral arrangements and use of
commercial paper programmes of EUR 105 million.
The average interest rate for the portfolio of EUR loans was 3.6% at the balance sheet date
(2023: 4.0%). The average interest rate on total loans and derivatives was 3.8% at the balance
sheet date (2023 : 4.3%).
For more information, see Note 4 Financial risk management, Note 34 Leases, Note 36 Pledged
assets and contingent liabilities and Note 38 Related party transactions.
176
Reconciliation of interest-bearing liabilities
Non-cash changes
EUR million
1 Jan 2024
Deconsolidation of
subsidiary
companies
Cash flow from
financing activities
Non-cash collateral
arrangement
Valuation
differences/
Change in
consolidation
Lease liabilities
31 Dec 2024
Bonds
2,736
19
2,755
Reborrowing from the Finnish State Nuclear Waste Management Fund
951
951
Financial and other interest-bearing liabilities
2,105
-953
-100
-23
1,028
Lease liabilities
118
-25
-22
23
94
Total
5,909
-25
-975
-100
-4
23
4,828
Non-cash changes
EUR million
1 Jan 2023
Deconsolidation of
subsidiary
companies
Cash flow from
financing activities 1)
Non-cash collateral
arrangement
Valuation
differences/
Change in
consolidation
Lease liabilities
31 Dec 2023
Bonds
2,634
58
43
2,736
Reborrowing from the Finnish State Nuclear Waste Management Fund
918
33
951
Financial and other interest-bearing liabilities
4,113
-173
-1,705
-152
22
2,105
Lease liabilities
119
-5
-20
23
118
Total
7,785
-178
-1,634
-152
65
23
5,909
1) Repayments and borrowings from continuing and discontinued operations.
Bond issues
Issued/Maturity
Interest
basis
Interest
rate, %
Effective
interest, %
Currency
Nominal
value
million
Carrying
amount
EUR
million
Fortum Corporation EUR 6,000 million EMTN Programme 1)
2019/2026
Fixed
1.625
1.638
EUR
750
741
2023/2028
Fixed
4.000
4.078
EUR
500
505
2019/2029
Fixed
2.125
2.247
EUR
750
744
2023/2033
Fixed
4.500
4.537
EUR
650
668
2013/2043
Fixed
3.500
3.719
EUR
100
97
Total carrying amount 31 December 2024
2,755
1)EMTN = Euro Medium Term Note 
177
28 Income taxes on the balance sheet
ACCOUNTING POLICIES
The tax currently payable is based on taxable profit for the year. Taxable profit differs from
profit as reported in the consolidated income statement, because of items of income or
expense that are taxable or deductible in other years and items that are never taxable or
deductible. The Group’s liability for current tax is calculated using tax rates that have been
enacted or substantively enacted by the end of the reporting period.
Deferred tax is provided in full, using the balance sheet approach on temporary differences
arising between the tax bases of assets and liabilities and their carrying amounts in the
consolidated financial statements. However, if the deferred tax arises from initial recognition
of an asset or liability in a transaction other than a business combination that at the time of the
transaction affects neither accounting nor taxable profit or loss, it is not accounted for and at
the time of transaction does not give rise to equal taxable and deductible differences. Deferred
tax is determined using tax rates (and laws) that have been enacted or substantially enacted
by the closing date and are expected to apply when the related deferred tax asset is realised
or the deferred tax liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future taxable profit
will be available against which the temporary differences can be utilised. Deferred tax assets
are set off against deferred tax liabilities if they relate to income taxes levied by the same
taxation authority.
Deferred tax is provided on temporary differences arising from investments in subsidiaries,
associates and joint ventures, except where the timing of the reversal of the temporary
difference is controlled by the Group, and it is probable that the temporary difference will not
be reversed in the foreseeable future.
The Group recognises liabilities for anticipated tax dispute issues based on estimates of
whether additional taxes will be due. No provision will be recognised in the financial
statements if Fortum considers the claims unjustifiable. Therefore, if taxes regarding ongoing
tax disputes have to be paid before final court decisions, they are booked as a receivable.
Where the final outcome of these matters is different from the amounts that were initially
recorded, such differences will impact the income tax and deferred tax provisions in the period
in which such determination is made.
The Group applies the mandatory exception to the recognition and disclosure of deferred
taxes arising from the jurisdictional implementation of the Pillar Two model rules.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS: ASSUMPTIONS
AND ESTIMATES REGARDING FUTURE TAX CONSEQUENCES
Fortum has deferred tax assets and liabilities which are expected to be realised through the
income statement over the extended periods of time in the future. In calculating the deferred
tax items, Fortum is required to make certain assumptions and estimates regarding the future
tax consequences attributable to differences between the carrying amounts of assets and
liabilities as recorded in the financial statements and their tax basis.
Assumptions made include the expectation that future operating performance for subsidiaries
will be consistent with historical levels of operating results, recoverability periods for tax loss
carryforwards will not change, and that existing tax laws and rates will remain unchanged into
foreseeable future. Fortum believes that it has prudent assumptions in developing its deferred
tax balances.
Fortum continually evaluates the probability of utilising deferred tax assets and considers
various factors that, in addition to the actual and planned earnings of the past, take into
account medium-term and long-term planning. The basis for recognising deferred tax assets is
an estimate by management of the extent to which it is probable that there will be sufficient
taxable profit in the foreseeable future against which the unused tax losses, tax credits and
deductible temporary differences can be offset.
In line with Fortum Tax Principles and accounting rules Fortum determines and evaluates
uncertain tax position by assessing the probability, whether a tax authority or a court in case of
foreseeable litigation will accept the tax treatment. If the probability is below the threshold of
more likely than not, Fortum reflects the effect of the uncertainty in its financial statements
accordingly. Fortum is committed to transparent tax authority relation and assumes that the
tax authority will review the positions and will have full knowledge of all applicable information
when assessing taxation. When needed, Fortum obtains legal opinions to support the
assessment of the tax and accounting treatment.
178
28.1 Deferred taxes on the balance sheet
2024
2023
EUR million
1 Jan
Change
31 Dec
1 Jan
Change
31 Dec
Deferred tax assets
958
-113
845
933
24
958
Deferred tax liabilities
-428
42
-386
-152
-276
-428
Net deferred taxes
530
-71
459
782
-252
530
Deferred tax assets are recognised to the extent it is probable that future taxable profit will be
available against which the unused tax losses, unused tax credits and deductible temporary
differences can be utilised in the relevant jurisdictions. As of 31 December 2024, Fortum has
recognised deferred tax assets of EUR 845 million (2023: EUR 958 million).
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to
offset current tax assets against current tax liabilities and when the deferred income taxes
relate to the same fiscal authority.
179
Movement in deferred tax assets and liabilities 2024
EUR million
Intangible assets
Property, plant and
equipment and
right-of-use assets
Pension obligations
Provisions
Derivative financial
instruments
Tax losses and
interest carry-
forward
Other
Net deferred taxes
1 January 2024
-61
-452
-2
-12
90
915
52
530
Charged to income statement
4
2
0
-12
11
9
-27
-14
Charged to other comprehensive income
0
0
-4
0
-114
0
0
-118
Exchange rate differences, reclassifications and other changes
3
5
0
1
-1
-14
-7
-13
Disposals 1)
0
81
0
-5
0
-3
0
74
31 December 2024
-55
-365
-5
-28
-14
907
19
459
1)Disposals of subsidiary companies in 2024 included the divestment of the recycling and waste business. See Note 3.2 Disposals.
Movement in deferred tax assets and liabilities 2023
EUR million
Intangible assets
Property, plant and
equipment and
right-of-use assets
Pension obligations
Provisions
Derivative financial
instruments
Tax losses and
interest carry-
forward
Other
Net deferred taxes
1 January 2023
-54
-530
-3
-19
589
753
46
782
Charged to income statement
0
7
0
9
-15
202
64
266
Charged to other comprehensive income
0
0
2
0
-475
0
0
-474
Exchange rate differences, reclassifications and other changes
-6
10
0
-1
-9
-39
-6
-51
Disposals 1)
-2
61
-1
-2
0
0
-51
6
31 December 2023
-61
-452
-2
-12
90
915
52
530
1)Disposals of subsidiary companies in 2023 included EUR 10 million from the deconsolidation of Russian operations in April 2023. See Note 3.3 Discontinued operations.
The net change in deferred taxes during 2024 is primarily due to a decrease in deferred tax
related to derivatives in other comprehensive income. The deferred tax asset on tax loss carry
forward is mainly in Ireland, resulting from the Uniper divestment in 2022 and Russia-related
impairments in 2022 and 2023. Fortum has prepared a comprehensive forecast to assess the
future profitability of the Irish legal entity holding the loss carried forward, and has relied on this
estimate to support the value of the deferred tax asset, which amounts to EUR 780 million at 31
December 2024. The utilisation of tax losses in Ireland in 2024 was in line with the estimate.
180
Expiry of tax losses and interest carried forward and recognised
deferred tax assets
2024
2023
EUR million
Tax losses
and interest
carried
forward
Deferred
tax asset
Tax losses
and interest
carried
forward
Deferred
tax asset
Tax losses carried forward without expiration date 1)
6,369
813
6,724
852
Tax losses carried forward with expiration date
9
2
12
2
Total
6,378
815
6,735
855
Interest carried forward without expiration date
108
25
97
24
Interest carried forward with expiration date
322
67
175
36
Total
430
92
272
61
1)Majority relates to Ireland resulting from the Uniper divestment in 2022 and Russia-related impairments in 2022 and 2023.
Deferred tax assets are recognised for tax losses carried forward and interest carried forward to
the extent that the realisation of the related tax benefit through future profits is probable. The
decrease in tax losses carried forward is primarily due to losses recognised in Ireland. The
increase in interest carried forwards is mostly attributed to the rise in interest rates on loans,
mainly in Sweden, where interest cost deduction is limited by local legislation.
Unrecognised deferred tax
The amount of temporary differences, tax losses carried forward, interest carried forward, and
tax credits for which no deferred tax asset was recognised due to uncertainty of utilisation:
EUR million
2024
2023
Temporary differences
997
1,129
Tax losses carried forward
280
140
Interest carried forward
84
97
Tax credits
5
5
Total
1,366
1,371
The unrecognised amounts in deductible temporary differences, interest carried forward and tax
losses carried forward were materially formed in 2023 by the following transactions: in Finland,
EUR 475 million was related to the write-down of Russian shares, and in the Netherlands, EUR
746 million was due to Russia-related loan impairments.
Deferred tax liabilities were continued to be not recognised on temporary differences of EUR 23
million (2023: 23) relating to investments in subsidiaries as Fortum can control the reversal
effect, and it is probable that temporary differences will not be reversed in the foreseeable
future.
28.2 Income tax receivables and liabilities
Income tax receivables, EUR 101 million (2023: 59), and income tax liabilities, EUR -93 million
(2023: -43), fluctuate due to corporate income taxes accrued and paid mainly in relation to the
financial year, as well as in relation to previous years payments in various legal entities in
accordance with local tax law requirements.
Income tax receivables in Belgium decreased by EUR 36 million as a result of positive ruling in
the legal case on tax disputes on income tax assessments for the year 2008. See Note 37 Legal
actions and official proceedings.
181
29 Nuclear-related assets and liabilities
ACCOUNTING POLICIES
Fortum owns Loviisa nuclear power plant in Finland. In Fortum's consolidated balance sheet,
Share in the State Nuclear Waste Management Fund and the Nuclear provisions relate to
Loviisa nuclear power plant. Fortum’s share in the State Nuclear Waste Management Fund is
accounted for according to IFRIC 5, Rights to interests arising from decommissioning,
restoration and environmental rehabilitation funds which states that the fund assets are
measured at the lower of fair value or the value of the related liabilities since Fortum does not
have control or joint control over the State Nuclear Waste Management Fund. The Nuclear
Waste Management Fund is managed by governmental authorities. The related provisions are
the provision for decommissioning and the provision for disposal of spent fuel. 
The fair values of the provisions are calculated according to IAS 37 by discounting the separate
future cash flows, which are based on estimated future costs and actions already taken. The
initial net present value of the provision for decommissioning (at the time of commissioning
the nuclear power plant) has been included in the investment cost and is depreciated over the
estimated operating time of the nuclear power plant. Changes in the technical plans etc.,
which have an impact on the future cash flow of the estimated costs for decommissioning, are
accounted for by discounting the additional costs to the current point in time. The increased
asset retirement cost due to the increased provision for decommissioning is added to
property, plant and equipment and depreciated over the remaining estimated operating time
of the nuclear power plant. For power plant units taken from use the increase is recognised
immediately in the income statement.
The provision for spent fuel covers the future disposal costs for fuel used until the end of the
accounting period. Costs for disposal of spent fuel are expensed during the operating time
based on fuel usage. The impact of the possible changes in the estimated future cash flow for
related costs is recognised immediately in the income statement based on the accumulated
amount of fuel used until the end of the accounting period. The related interest costs due to
unwinding of the provision is recognised in other financial items - net.
The interest income and possible fair valuation effects on the State Nuclear Waste
Management Fund assets are presented in other financial items - net.
Fortum's actual share of the State Nuclear Waste Management Fund, related to Loviisa nuclear
power plant, is higher than the carrying value of the Fund on the balance sheet. The legal
nuclear liability should, according to the Finnish Nuclear Energy Act, be fully covered by
payments and guarantees to the State Nuclear Waste Management Fund. The legal liability is
not discounted while the provisions are, and since the future cash flow is spread over a very
long time horizon, the difference between the legal liability and the provisions are material.
The annual fee to the Fund is based on changes in the legal liability, the return generated in the
State Nuclear Waste Management Fund and incurred costs of taken actions.
Fortum also has minority interests in other nuclear power companies, i.e. Teollisuuden Voima
Oyj (TVO) in Finland and OKG Aktiebolag (OKG) and Forsmarks Kraftgrupp AB (Forsmark) in
Sweden. The minority shareholdings are classified as associated companies and joint ventures
and are consolidated with equity method. Both the Finnish and the Swedish companies are
non-profit making, i.e. electricity production is invoiced to the owners at cost according to
local GAAP. Accounting policies of the associates regarding nuclear-related assets and
liabilities have been changed where necessary to ensure consistency with the policies adopted
by the Group.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS: ASSUMPTIONS
MADE WHEN ESTIMATING PROVISIONS RELATED TO NUCLEAR
PRODUCTION
The provision for future obligations for nuclear waste management including decommissioning
of Fortum's nuclear power plant and related spent fuel is based on long-term cash flow
forecasts of estimated future costs. The main assumptions are technical plans, timing, cost
estimates and discount rate. The technical plans, timing and cost estimates are approved by
governmental authorities.
Any changes in the assumed discount rate would affect the provision. If the discount rate used
would be lowered, the provision would increase. For the power plants where the actual Share
of the State Nuclear Waste Management Fund is higher than the provision an increase in
provisions would be offset by an increase in the recorded share of Fortum's part of the State
Nuclear Waste Management Fund on the balance sheet. The total effect on the income
statement would be positive since the decommissioning part of the provision is treated as an
asset retirement obligation. This situation will prevail as long as the actual Share of the State
Nuclear Waste Management Fund is higher than recognised in the balance sheet and IFRS is
limiting the carrying value of the assets to the amount of the provision since Fortum does not
have control or joint control over the fund.
Both in Finland and in Sweden nuclear operators are legally obligated for the decommissioning
of the plants and the disposal of spent fuel (nuclear waste management). In both countries the
nuclear operators are obligated to secure the funding of nuclear waste management by paying
to government operated nuclear waste funds. The nuclear operators also have to give
securities to guarantee that sufficient funds exist to cover future expenses of
decommissioning of the power plant and the disposal of spent fuel.
182
29.1 Nuclear-related assets and liabilities for consolidated
nuclear power plants
EUR million
2024
2023
Carrying values on the balance sheet
Nuclear provisions
1,117
1,058
Fortum's share in the State Nuclear Waste Management Fund
1,117
1,058
Short-term receivable from the State Nuclear Waste Management Fund
65
0
Fortum's share of the fair value of the net assets in the State Nuclear Waste
Management Fund
1,253
1,197
Share of fund not recognised on the balance sheet
70
139
Nuclear provision and fund accounted according to IFRS
Nuclear provisions include the provision for decommissioning and the provision for disposal of
spent fuel. The carrying value of the nuclear provisions, calculated according to IAS 37,
increased by EUR 58 million compared to 31 December 2023, totalling EUR 1,117 million at 31
December 2024.
Fortum's share of the State Nuclear Waste Management Fund is from an IFRS perspective
overfunded by EUR 70 million, since Fortum's share of the Fund on 31 December 2024 was EUR
1,253 million, while the carrying value on the balance sheet was EUR 1,117 million and the short-
term receivable from the fund EUR 65 million. The Fund on Fortum's balance sheet can at
maximum be equal to the amount of the provisions according to IFRS. As long as the Fund is
overfunded from an IFRS perspective, the other financial items - net, is adjusted positively if the
provisions increase more than the Fund, and negatively if the provision decreases below the
actual value of the fund.
Legal liability for Loviisa nuclear power plant
The legal liability on 31 December 2024, decided by the Ministry of Economic Affairs and
Employment in December 2024, was EUR 1,272 million.
The legal liability is based on a cost estimate, which is updated every year; and a technical plan,
which is updated every three years. The legal liability is determined by assuming that the
decommissioning would start at the beginning of the year following the assessment year and
discounting is not applied in determining the amount.
Fortum’s share in the Finnish Nuclear Waste Management Fund
According to Nuclear Energy Act, Fortum is obligated to contribute funds in full to the State
Nuclear Waste Management Fund to cover the legal liability. Fortum contributes funds to the
Finnish State Nuclear Waste Management Fund based on the yearly funding obligation target
decided by the governmental authorities in connection with the decision of size of the legal
liability. The current funding obligation target decided in December 2024 is EUR 1,228 million.
The Ministry of Economic Affairs and Employment took into consideration in approving the
funding target, the transfer of costs relating to decommissioning of the encapsulation plant and
closure of the final disposal repository from Fortum to Posiva during 2025. Posiva is jointly
owned by Fortum and TVO.
Nuclear provisions
EUR million
2024
2023
1 January
1,058
966
Increase in provisions
51
69
Provision used
-31
-41
Unwinding of discount
38
63
31 December
1,117
1,058
Fortum's share in the State Nuclear Waste Management Fund
1,117
1,058
Borrowing from the State Nuclear Waste Management Fund
Participants in the Finnish State Nuclear Waste Management Fund are allowed to borrow from
the fund according to certain rules. Fortum uses the right to borrow back and has pledged
shares in Kemijoki Oy as security for the loans. The loans are renewed every three years. See
Note 27 Interest-bearing liabilities and Note 36 Pledged assets and contingent liabilities.
29.2 Nuclear power plants in associated companies and joint
ventures
OKG, Forsmark and TVO are non-profit making companies, i.e. electricity production is invoiced
to the owners at cost. Invoiced cost is accounted for according to local GAAP. In addition to the
invoiced electricity production cost, Fortum makes IFRS adjustments to comply with Fortum's
accounting principles. These adjustments include also Fortum's share of the companies' nuclear
waste funds and nuclear provisions.
The tables below present the 100% figures relating to nuclear funds and provisions for the
companies as well as Fortum's net share.
183
TVO's total nuclear related assets and liabilities (100%)
EUR million
2024
2023
Carrying values in TVO with Fortum assumptions
Nuclear provisions
1,673
1,614
Share of the State Nuclear Waste Management Fund
1,246
1,199
Net amount
-427
-415
of which Fortum's net share consolidated with equity method
-107
-104
TVO's legal liability and actual share of the State Nuclear Waste Management
Fund
Liability for nuclear waste management according to the Nuclear Energy Act
1,960
1,918
Share in the State Nuclear Waste Management Fund
1,525
1,458
Share of the fund not recognised on the balance sheet
279
259
TVO's legal liability, provision and share of the fund are based on the same principles as described
above for Loviisa nuclear power plant. The liabilities and shares in the Fund are calculated and
recorded separately for OL1/OL2 plant units and OL3 plant unit, as the corresponding total cost
estimates are prepared separately. Commercial operation for OL3 started on 1 May 2023. This
meant, among other things, that capitalisation of project costs was stopped and amortisation was
started.
The difference between TVO's share in the State Nuclear Waste Management Fund and the
carrying value of the TVO's share in the Fund is due to IFRIC 5, which requires that the carrying
amount of the share in the State Nuclear Waste Management Fund is the lower of fair value or
the value of the related liability. On 31 December 2024 the OL1/OL2 plant units' share in the
Fund is higher than the provision according to IFRS. The OL3 plant unit's share in the Fund is on
the other hand lower than the provision according to IFRS. TVO's share of the Finnish State
Nuclear Waste Management Fund is from an IFRS perspective overfunded by EUR 279 million (of
which Fortum's share is EUR 74 million), since TVO's share of the Fund on 31 December 2024
was EUR 1,525 million and the carrying value on the consolidated balance sheet with Fortum
assumptions was EUR 1,246 million.
Participants in the Finnish State Nuclear Waste Management Fund are allowed to borrow from
the fund according to certain rules. Fortum is using the right to reborrow funds through TVO
based on its ownership. See more information in Note 27 Interest-bearing liabilities.
OKG’s and Forsmark’s total nuclear related assets and liabilities (100%)
EUR million
2024
2023
OKG's and Forsmark's nuclear-related assets and liabilities with Fortum
assumptions
Nuclear provisions
5,064
5,001
Share in the Swedish Nuclear Waste Fund
3,590
3,506
Net amount
-1,474
-1,495
  of which Fortum's net share consolidated with equity method
-476
-472
In Sweden, Svensk Kärnbränslehantering AB (SKB), a company owned by the nuclear
operators, takes care of all nuclear waste management-related activities on behalf of nuclear
operators. SKB receives its funding from the Swedish Nuclear Waste Fund, which in turn is
financed by the nuclear operators.
Nuclear waste fees and guarantees are normally updated every three years by governmental
decision after a proposal from the Swedish Radiation Safety Authority (SSM). The proposal is
based on cost estimates done by SKB and the license holders. An updated technical plan for
nuclear waste management was decided by SKB in December 2022. In January 2022, the
Swedish government decided the waste fees and guarantees for 2022–2023. In December 2023,
the Swedish Government decided on nuclear waste fees and guarantees in accordance with the
proposal from the National Debt Office, for the year 2024. In December 2024, the Swedish
Government decided on nuclear waste fees and guarantees in accordance with the proposal
from the National Debt Office, for the year 2025. Nuclear waste fees paid by licensees with a
unit/units that are still in operation are currently based on future costs with the assumed lifetime
of 50 years for each unit of a nuclear power plant. The fee is calculated in relation to the energy
delivered.
Nuclear-related guarantees
In addition to nuclear waste fees nuclear power companies provide guarantees for any
uncovered liability and unexpected events.
For more information regarding Fortum's guarantees given on behalf of nuclear companies, see
Note 36 Pledged assets and contingent liabilities.
184
30 Other provisions
ACCOUNTING POLICIES
Provisions are recognised when the Group has a present legal or constructive obligation to a
third party as a result of past events, it is probable that an outflow of resources will be required
to settle the obligation and the amount can be reliably estimated.
Provisions are measured at the present value of the expenditures expected to be required to
settle the obligation at the reporting date using a discount rate that reflects current market
assessment of the time value of money. When risk is not covered in the estimated cash flows,
the discount rate also includes the risks specific to the obligation.
Increase in the provision due to the passage of time and changes in provisions due to changes
in discount rates are recognised as interest expense in the consolidated income statement.
Changes in provisions, except for changes in asset retirement obligations, are recognised in
the consolidated income statement.
ASSET RETIREMENT OBLIGATIONS
Asset retirement obligations for the decommissioning or dismantling of property, plant and
equipment are recognised either when there is a contractual obligation towards a third party
or a legal obligation. The obligation is generally based on detailed cost estimates validated by
external experts.
The asset retirement obligation is recognised as part of the cost of an item of property, plant
and equipment when the asset is put in service. Costs are depreciated over the remainder of
the asset's useful life. Changes in asset retirement obligations are recognised in property,
plant and equipment on the consolidated balance sheet; unless the item of property, plant and
equipment has already been fully depreciated when changes are recognised in the
consolidated income statement. 
ENVIRONMENTAL PROVISIONS
Environmental provisions are recognised based on the current interpretation of environmental
laws and regulations when it is probable that a present obligation has arisen, and the amount
of such liability can be reliably estimated. The obligation is generally based on detailed cost
estimates validated by external experts.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS: ASSUMPTIONS
MADE WHEN ESTIMATING PROVISIONS
Provisions for present obligations require management judgment in determining whether it is
probable that an outflow of economic benefits will be required to settle the obligation.
Estimation is required in determining the value of the obligation as the amount recognised as a
provision is based on the best estimate of unavoidable costs required to settle the obligation
at the end of the reporting period. When estimating unavoidable costs, management may be
required to consider a range of possible outcomes and their associated probabilities, risks and
uncertainties surrounding the events and circumstances, as well as making assumptions of the
timing of payment. Estimation is also required in determining the rate used to discount
provisions to present value. Changes in estimates of timing or amounts of costs required to
settle the obligation may become necessary as time passes and/or more accurate information
becomes available.
EUR million
Asset
retirement
Environmental
remediation
and
similar
Other
Total
1 January 2024
23
28
76
127
Increase in provisions
2
2
10
13
Provisions used
0
-1
-16
-17
Unused provisions reversed
0
0
-11
-12
Exchange rate differences and other
changes     
0
0
0
-1
Deconsolidation of subsidiary companies
0
-27
0
-27
31 December 2024
24
2
58
84
  
Of which current provisions
0
0
3
3
Of which non-current provisions
24
2
55
81
Decrease during the year is mainly related to the sale of the recycling and waste business.
Provisions for asset retirement obligations consist of obligations for conventional and renewable
energy power plants. The majority of the provision is estimated to be used within 5–10 years. 
For provisions for decommissioning, and provision for disposal of spent fuel for nuclear
production, see Note 29 Nuclear-related assets and liabilities.
185
31 Pension obligations
ACCOUNTING POLICIES
The Group companies have various pension schemes in accordance with the local conditions
and practices in the countries in which they operate. The schemes are generally funded
through payments to insurance companies or pension fund. The Group has both defined
benefit and defined contribution plans.
For defined benefit plans, pension costs are assessed using the projected unit credit method.
The cost of providing pensions is charged to the income statement as to spread the service
cost over the service lives of employees. Current and past service cost, as well as gains or
losses from settlements are reported under personnel costs. The net interest is reported in
financial items. 
The defined benefit obligation is calculated annually on the balance sheet date and is
measured as the present value of the estimated future cash flows using interest rates of high
quality corporate bonds, or similar, that have terms to maturity approximating to the terms of
the related pension liability. The plan assets for pensions are valued at market value. The net
liability recognised on the balance sheet is the defined benefit obligation at the closing date
less the fair value of plan assets.
Any net asset position that might arise from offsetting the present value of the defined benefit
obligations against the corresponding fair value of plan assets is recognised taking into
account the applicable asset restrictions. Such an asset position is reported in Other non-
current assets on the balance sheet. 
In the case of a plan amendment, curtailment or settlement (each a "plan event") occurring in a
defined benefit plan during an annual reporting period, the current service cost and the net
interest on the net liability or asset are remeasured for the remainder of the reporting period
after the plan event. The actuarial assumptions applicable as of the date of the plan event are
to be used as the basis for such remeasurement. When the benefits of a plan are changed, or
when a plan is curtailed, the resulting change in the present value of the defined benefit
obligation that relates to past service, or the gain or loss related to a curtailment is recognised
immediately in profit or loss. Gains or losses on settlements of defined benefit plans are
recognised when the settlement occurs.
Remeasurements of the net defined benefit liability or asset include actuarial gains and losses
that may arise especially from differences between estimated and actual variations in
underlying assumptions about demographic and financial variables; and, additionally, from
developments in these assumptions as of each reporting date. Additionally included is the
difference between the actual return on plan assets and the interest income on plan assets
contained in the net interest result, as well as any change in the effect of the asset ceiling,
excluding amounts already included in net interest. Remeasurement results and related
deferred taxes are recognised in full in the period in which they occur and are reported in other
comprehensive income.
The Group's contributions to defined contribution plans are charged to the income statement
in the period to which the contributions relate.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS: ASSUMPTIONS
USED TO DETERMINE FUTURE PENSION OBLIGATIONS
The present value of the pension obligations is based on actuarial calculations that use several
assumptions. Any changes in these assumptions will impact the carrying amount of pension
obligations.
Fortum’s pension arrangements
Finland
The statutory pension benefits (as determined in Employee’s Pension Act /TyEL) in Finland
provide the employees’ pension coverage for old age, disability and death of a family provider.
The benefits are insured with an insurance company, and determined to be defined contribution
plans.
In addition, the Group has historical old-age and survivor pension benefits with the Fortum
Pension Fund covering a limited number of people. The Fortum Pension Fund is a closed fund
managed by a Board, consisting of both employers' and employees' representatives. The
promised benefit is defined in the rules of the Fund, mostly at a maximum of 66% of the salary
basis. The salary basis is an average of the ten last years' salaries, which are indexed by a
common salary index to the accounting year. After retirement the benefits payable are indexed
yearly with the TyEL-index.
The Fund is operating under the regulation from the Financial Supervisory Authority (FSA). The
liability has to be fully covered according to the regulations. The national benefit obligation
related to the defined benefit plans is calculated so that the promised benefit is fully funded
until retirement.
Other countries
As of December 2024, there were no material defined benefit pension arrangements in Fortum’s
other operating countries.
186
Main risks relating to defined benefit plans
Typical risk factors for defined benefit plans are changes in discount rates, risks related to other
actuarial assumptions, as well as investment and volatility risks.
Change in discount rate
The discount rate used to calculate the defined benefit obligation (according to IFRS) depends on
the value of corporate bond yields as at the reporting date. A decrease in yields increases the
benefit obligation that is often only partially offset by an increase in the value of fixed income
holdings.
Risk related to other actuarial assumptions
Assumptions for future inflation, salary levels and mortality are used for actuarial calculations.
Should the actual outcome differ from these assumptions, the liability may change.
Investment and volatility risk
Pension plan assets are allocated to different asset classes based on the statutory legislation or
investment strategy of the corresponding pension plan. Depending on the pension plan,
underlying investment management plans are updated on a regular basis. If the return of the
fund’s assets is not enough to cover the raise in liability and benefit payments over the financial
year, the employer has to fund the deficit with contributions, unless the fund has sufficient
covering.
Movement in the net defined benefit liability
Defined benefit
obligation
Fair value
of plan assets
Net defined benefit
asset(-)/liability(+)
EUR million
2024
2023
2024
2023
2024
2023
1 January
263
267
-273
-280
-9
-14
Included in consolidated income statement 1)
Current service cost
1
1
0
0
2
2
Settlements
-1
-2
3
3
2
1
Net interest
8
9
-9
-10
0
-1
8
9
-5
-7
3
2
Included in OCI
Remeasurement gains(-)/losses(+)
-4
7
-15
1
-20
9
Actuarial gains/losses arising from changes
in financial assumptions
-1
2
0
0
-1
2
Actuarial gains/losses arising from
experience adjustments
-3
5
0
0
-3
5
Return on plan assets (excluding amounts
included in net interest expense)
0
0
-15
1
-15
1
Exchange rate differences and other changes
-3
-3
3
2
0
-1
-8
4
-12
4
-20
7
Other
Contributions paid by/to the employer
0
0
-2
-2
-2
-2
Benefits paid
-15
-15
15
15
0
0
Acquisitions of subsidiary companies
0
1
0
-2
0
-1
Deconsolidation of subsidiary companies 2)
0
-3
0
0
0
-3
31 December
249
263
-277
-273
-28
-9
Present value of funded defined obligation
249
263
Fair value of plan assets
-277
-273
Funded status
-28
-10
Present value of unfunded obligation
0
0
Net liability arising from defined benefit
obligation
-28
-9
Pension assets included in other non-current
assets on the balance sheet
40
20
Pension obligations on the balance sheet
12
10
1)Net interest is presented in financial items in the income statement. The rest of costs related to defined benefit plans are
included in staff costs (row defined benefits plans in the staff cost specification in Note 10 Employee benefits and Board
remuneration).
2)See Note 3 Acquisitions, disposals and discontinued operations.
In 2023 changes during the year include Russia until 31 March 2023.
No contribution is expected to be paid during 2025.
187
Fair value of plan assets
2024
2023
EUR million
Quoted
Unquoted
Total
Quoted
Unquoted
Total
Equity instruments
77
7
84
79
5
85
Debt instruments
117
39
155
104
40
144
Cash and cash equivalents
0
14
14
0
18
18
Real estate
0
11
11
0
12
12
Other assets
0
12
12
0
12
12
Total
194
83
277
184
89
273
A specification of plan assets has not been available for pension plans financed through an
insurance company. In these cases, the fair value of plan assets has been included in other
assets.
The actual return on plan assets totalled EUR 22 million (2023: 9).
Amounts recognised on the balance sheet by country 2024
EUR million
Finland
Other
countries
Total
Present value of funded obligations
193
55
249
Fair value of plan assets
-226
-51
-277
Deficit(+)/surplus(-)
-33
4
-28
Present value of unfunded obligations
0
0
0
Net asset(-)/liability(+) on the balance sheet
-33
5
-28
Pension asset included in non-current assets
33
7
40
Pension obligations on the balance sheet
0
11
12
Amounts recognised on the balance sheet by country 2023
EUR million
Finland
Other
countries
Total
Present value of funded obligations
207
56
263
Fair value of plan assets
-220
-53
-273
Deficit(+)/surplus(-)
-13
3
-10
Present value of unfunded obligations
0
0
0
Net asset(-)/liability(+) on the balance sheet
-13
3
-9
Pension asset included in non-current assets
14
6
20
Pension obligations on the balance sheet
1
9
10
The principal actuarial assumptions used in Finland
%
2024
2023
Discount rate
3.2
3.3
Future salary increases
3.0
2.4
Future pension increases
2.1
2.4
Rate of inflation
1.9
2.2
The discount rate in Finland is based on high quality European corporate bonds with maturity
that best reflects the estimated term of the defined benefit pension plans.
The discount, inflation, salary growth and pension growth rates, as well as mortality are the key
assumptions when calculating defined benefit obligations. Changes in the key actuarial
assumptions would lead to the following changes in the present value of the defined benefit
obligations:
Sensitivity of defined benefit obligation to changes in assumptions
Change in the assumption
Impact to the pension obligation
increase(+)/decrease(-)
0.5% increase in discount rate
-5.7%
0.5% decrease in discount rate
6.3%
0.5% increase in benefit
5.8%
0.5% decrease in benefit
-5.3%
0.5% increase in salary growth rate
0.2%
0.5% decrease in salary growth rate
-0.2%
10% increase in mortality
-3.7%
10% decrease in mortality
3.8%
A 10% decrease in mortality would result in higher life expectancy of beneficiaries, depending of
the age of each individual beneficiary. At the end of 2024, the life expectancy of a 63-year-old
male retiree would increase by approximately one year, if mortality were to decrease by 10%.
The sensitivities indicated are computed based on the same methods and assumptions used to
determine the present value of the defined benefit obligations. If one of the actuarial
assumptions is changed for the purpose of computing the sensitivity of results to changes in
that assumption, all other actuarial assumptions are included in the computation unchanged.
Potential correlation effects between the individual actuarial assumptions are not taken into
account when computing sensitivities. When considering sensitivities, it must be noted that the
change in the present value of the defined benefit obligations resulting from changing multiple
actuarial assumptions simultaneously is not necessarily equivalent to the cumulative effect of
the individual sensitivities.
188
Maturity profile of the undiscounted defined benefit obligation on 31
December 2024
EUR million
Future benefit
payments
Maturity under 1 year
15
Maturity between 1 and 5 years
60
Maturity between 5 and 10 years
69
Maturity between 10 and 20 years
116
Maturity between 20 and 30 years
68
Maturity over 30 years
30
The weighted average duration of defined benefit obligation at 31 December 2024 is 15 years.
32 Other non-current liabilities
EUR million
2024
2023
Connection fees
69
70
Other
55
53
Total
123
122
Connection fees include refundable fees paid by the customer when connected to district
heating network in Finland. Connection fees were refundable until 2013.
33 Trade and other payables
EUR million
2024
2023
Trade payables
361
488
Accrued expenses and deferred income
Accrued personnel expenses
92
102
Accrued interest expenses
100
97
Contract liabilities
1
25
Other accrued expenses and deferred income
109
143
Other liabilities
VAT-liability
57
51
Current tax liability
94
44
Advances received
12
20
Emission right liability and renewable energy certificate quota obligation 1)
88
104
Other
40
108
Total
956
1,181
1)For additional information see Note 23 Inventories.
The management considers that the amount of trade and other payables approximates fair
value.
189
34 Leases
ACCOUNTING POLICIES
LESSEE ACCOUNTING
The Group leases mainly office buildings and land areas. The Group recognises all leases, with
the exception of short-term (i.e. lease term less than 12 months) and low value leases as right-
of-use assets with a corresponding lease liability at the date at which the leased asset is
available for use by the Group.
Right-of-use assets and lease liabilities are initially recognised on the consolidated balance
sheet at future fixed lease payments over the lease term. Lease payments are discounted to
present value. Right-of-use assets are depreciated on a straight-line basis over the lease term,
or the useful life of the leased asset if shorter; and reviewed periodically for indication of
impairment.
When the future lease payments are revised due to changes in index-linked considerations or
the lease term changes, the right-of-use asset and the corresponding lease liability is
remeasured. Any differences arising on reassessments are recognised in the consolidated
income statement. 
Interest expense on lease liabilities is presented within Interest expense in the consolidated
income statement. In the consolidated cash flow statement, the principal portion of the lease
payment is presented under Payments of long-term liabilities, and the interest portion as
Interest paid under Funds from operations. Variable lease payments, as well as costs for leases
not capitalised due to exemptions in the standard, are expensed to consolidated income
statement.
Amounts recognised in consolidated financial statements
Lessee
EUR million
2024
2023
In consolidated income statement
Depreciation, of which
-23
-19
Land
-2
-2
Buildings and structures
-13
-11
Machinery and equipment
-7
-6
Interest expense on lease liabilities
-2
-2
Expense relating to short-term leases within Other expenses
-4
-6
On consolidated balance sheet
Additions to right-of-use assets, of which
29
27
Land
4
4
Buildings and structures
12
13
Machinery and equipment
13
10
Disposal of subsidiary companies, of which 1)
-24
-4
Land
-3
-3
Buildings and structures
-14
-1
Machinery and equipment
-7
0
Carrying amount of right-of-use assets, of which
101
122
Land
51
53
Buildings and structures
37
54
Machinery and equipment
12
15
Lease liabilities
94
118
In consolidated cash flow statement
Cash outflow for leases
-24
-21
1) See Note 3 Acquisitions, disposals and discontinued operations.
Maturity of undiscounted lease liabilities
EUR million
2024
Due within one year
18
Due after one year and within five years
45
Due after five years
49
Total
112
See Note 4 Financial risk management, Note 18 Property, plant and equipment and right-of-use
assets, and Note 27 Interest-bearing liabilities for more information.
190
35 Capital and other commitments
Capital and other commitments are contractual or regulatory obligations that are not recognised
as liabilities on the consolidated balance sheet, or disclosed as contingent liabilities.
35.1 Capital commitments
At 31 December 2024, Fortum had EUR 465 million (2023: 292) capital commitments for the
acquisition of property, plant and equipment and intangible assets. The increase in capital
commitments is mainly due to an increase in Loviisa lifetime extension related investments and
the start of Czestochowa CHP de-carbonization project in Poland in late 2024.
35.2 Other commitments to associates and joint ventures
Teollisuuden Voima Oyj (TVO) built Olkiluoto 3, the nuclear power plant funded through external
loans, share issues and shareholder loans according to shareholders' agreement between the
owners of TVO. At end of December 2024, Fortum had EUR 157 million (2023: 232) outstanding
receivables regarding Olkiluoto 3, The change is due to part of the shareholder loans being
converted to equity. TVO shareholder loan is classified as participation in joint ventures. For
more information, see Note 29 Nuclear-related assets and liabilities.
Fortum has formed a joint venture with Green Investment Group to build the South Clyde waste-
to-energy plant in Glasgow, Scotland. At 31 December 2024, Fortum had an outstanding
commitment of EUR 56 million (2023: 40) to the joint venture, which is funded by external loans,
share issues and shareholder loans.
35.3 Other commitments
In June 2018, the Swedish Parliament approved the legislation regarding Sweden’s national
strategy for implementation of the EU’s Water Framework Directive. The largest hydro
companies created a common hydro-power fund to finance large parts of the environmental
actions needed. The fund will have a total financial cap of SEK 10 billion to be paid over a 20-year
period, and the largest operators will contribute to the fund proportionately based on their
respective market share of hydro-power production. Fortum's share is 23% of the funds' total
financing. 
In May 2022, Fennovoima announced that it had terminated the contract for the delivery of the
nuclear power plant with RAOS Project Oy and withdrew the construction license application.
Currently, Fortum is financing certain costs of Voimaosakeyhtiö SF.
36 Pledged assets and contingent liabilities
ACCOUNTING POLICIES
PLEDGED ASSETS
Pledged assets are given to a lender as security for a loan, trading or other commitment. If the
borrower or trading party is unable to make the agreed payments, the lender can use the
pledged assets to mitigate its losses. Pledged assets at Fortum mostly consist of securities,
collaterals and real estate mortgages.
CONTINGENT LIABILITIES
A contingent liability is disclosed when there is a possible obligation that arises from past
events and whose existence is only confirmed by one or more doubtful future events; or when
there is an obligation that is not recognised as a liability or provision because it is not probable
that an outflow of resources will be required, or the amount of the obligation cannot be reliably
estimated.
36.1 Pledged assets
For debt
Fortum has pledged shares in Kemijoki as a security for the reborrowing from the Finnish State
Nuclear Waste Management Fund for the Loviisa nuclear power plant part, amounting to EUR
718 million (2023: 718).
Real estate mortgages total EUR 41 million (2023: 41).
For other commitments
Pledges assets include securities of EUR 213 million (2023: 325) to the Nordic Power Exchange
(Nasdaq Commodities), margin receivables of EUR 205 million (2023: 590) and restricted cash of
EUR 7 million (2023: 13). Margin receivables consist of cash collaterals for trading in
commodities exchanges, as well as foreign exchange and interest rate derivatives under Credit
Support Annex agreements.
Fortum has pledged real estate mortgages in Pyhäkoski hydro plant as security to the Ministry
of Economic Affairs and Employment amounting to EUR 125 million (2023: 122). These are given
as a security for the uncovered part of the legal liability and unexpected events relating to future
costs for decommissioning and disposal of spent fuel in Loviisa nuclear power plant. According
to the Nuclear Energy Act, Fortum is obligated to contribute the funds in full to the State Nuclear
Waste Management Fund to cover the legal liability. Any uncovered legal liability relates to
periodising of the payments to the fund. The size of the securities given is updated yearly in the
second quarter based on the decisions regarding the legal liabilities and the funding target
191
which are determined at the end of the previous year. See Note 29 Nuclear-related assets and
liabilities.
On behalf of others
Pledged assets on behalf of others consist of restricted cash of EUR 62 million (2023: 51) posted
as collateral toward Nasdaq Clearing AB covering Fortum’s required contribution to the
Commodity Market Default Fund (default fund). The default fund is a mutualised fund whereby
all participants on the Nordic power exchange (OMX Nasdaq Commodities) post collateral in
relation to their exposure on the market in order to cover potential defaults by members which
may cause losses exceeding the members' own collateral. See Note 22 Interest-bearing
receivables.
36.2 Contingent liabilities
In relation to divestment of shareholdings, Fortum has entered into indemnification agreements,
which cover the customary representations and warranties, as well as environmental damage
and tax contingencies. Any obligations that may exist are covered in the first instance by
provisions of the companies sold before Fortum itself is required to make any payments.
Moreover, the Fortum Group has commitments under which it assumes joint and several liability
arising from its interests in non-corporate commercial partnerships and consortia in which it
participates.
Fortum's 100% owned subsidiary Fortum Heat and Gas Oy has a contingent liability, based on
the Finnish Companies Act's (734/1978) Chapter 14a Paragraph 6, with Neste Oyj following the
demerger of Fortum Oil and Gas Oy in 2004.
36.3 Guarantees relating to Nuclear operations
With respect to the activities of the Swedish nuclear power plants, the companies of the
Swedish nuclear units have issued guarantees for OKG and Forsmark to governmental
authorities in accordance with the Swedish law. There are two types of guarantees given. The
Financing Amount is given to cover Fortum's share of the uncovered part in the Nuclear Waste
Fund, assuming no further production and that no further nuclear waste fees are paid in. The
uncovered amount is calculated by the authorities and is based on the difference between the
expected costs and the funds to cover these costs at the time of the calculation. The
Supplementary Amount constitutes a guarantee for deficits that can arise as a result of
unplanned events. The amounts for the guarantees are normally updated every third year by
governmental decision. In addition, the licensees are responsible for all costs related to the
disposal of low-level radioactive waste.
In Finland, guarantees are given based on the Nuclear Energy act to cover the unfunded portion
of the nuclear waste management obligation, unexpected events and also an additional
statutory protected share, if the additional share is not covered with fund surplus and profit of
the fund.
The guarantee given on behalf of Teollisuuden Voima Oyj to the Ministry of Economic Affairs and
Employment amounts to EUR 151 million (2023: 142). The guarantee covers the unpaid legal
liability due to periodisation as well as risks for unexpected future costs.
Owners of nuclear facilities in Finland and Sweden have statutory liabilities for damages
resulting from accidents occurring in those nuclear facilities and for accidents involving any
radioactive substance connected to the operation of those facilities. Third-party liability relating
to nuclear accidents is strictly under the plant operator’s responsibility.
In Finland, as the operator of the Loviisa power plant, Fortum has a statutory liability insurance
policy of approximately EUR 1.2 billion.
In Sweden, the operator of a nuclear power plant in operation is required to have a liability
insurance or other financial cover in the amount equivalent to EUR 1.2 billion per site.
The necessary insurances for the nuclear power plants have been purchased. Similar insurance
policies are in place also for the operators where Fortum has minority interest. In Sweden the
government requires additional collaterals, for which parent company guarantees have been
issued.
For information regarding nuclear-related assets and liabilities see Note 29 Nuclear-related
assets and liabilities.
192
37 Legal actions and official proceedings
Various routine court actions, arbitration proceedings, tax and regulatory investigations and
proceedings are currently pending against entities of the Group, and further actions or
proceedings may be instituted or asserted in the future.
Environmental liability litigation in Sweden
Fortum is party to an ongoing environmental liability litigation in Sweden concerning barrels of
mercury placed in the Baltic Sea outside Sundsvall during the 1950s and 1960s. On 2 June 2023,
the Court of Appeal ruled that Fortum shall compensate a third party for the costs of a related
environmental investigation. No permission to appeal this decision was granted in 2024. 
Fortum has not at any time had any involvement in producing mercury, or placing the mercury
waste in the sea. At the time, a company called Stockholms superfosfat fabriks was operating the
industrial activities. In 1985, these industrial activities, including all rights and obligations thereof,
were transferred from Stockholms superfosfat fabriks AB to the third party. In 1995, Stockholms
superfosfat fabriks AB was sold to an external party, only then ending up in the Fortum Group (and
name changed to Fortum Ljunga Kraft AB).
The County Administrative Board has an ongoing errand on the environmental liability for the
barrels. In this process, the County Administrative Board will first make a decision on which
company shall carry out the environmental investigations and only thereafter it may decide on the
liability for the environmental measures. At this point in time, it is not possible to estimate either
the cost of the full environmental investigations, or the cost of potential environmental measures
required.
Settlement with Vestas
In October 2024 Fortum announced that Fortum and Vestas have reached a settlement in a
commercial dispute between the companies. The dispute concerned deliveries of equipment for
wind parks in Russia for which Fortum had made advance payments to Vestas. The financial
impact of the settlement has been recorded as items affecting comparability in IV/2024. With the
settlement agreement, the previously commenced International Chamber of Commerce arbitration
process has been terminated.
Investment arbitration proceedings against
the Russian Federation
Fortum has in February 2024 initiated arbitration proceedings against the Russian Federation and
will claim compensation for the unlawful expropriation of its assets, in order to protect its legal
position and shareholder rights. Fortum is seeking compensation for the value of its shares in PAO
Fortum (currently PAO Forward Energy) and its investments in Russia, amounting to several
billions of euros. The arbitration proceedings are the result of the Russian Federation’s violations of
its investment treaty obligations under the Bilateral Investment Treaties that Russia has with the
Netherlands and Sweden, and the Russian Federation’s failure to engage in any settlement
discussions with Fortum. The dispute stems from the hostile actions taken by the Russian
Federation which culminated with the Presidential Decree No. 302 issued on 25 April 2023,
whereby Fortum lost control of its Russian operations. The arbitration proceedings are expected to
take several years, followed by enforcement of the arbitral award. The outcome of the
enforcement measures can be assessed once the award has been obtained.
Legal proceedings against PAO Forward Energy
In October 2024, Fortum announced that it has initiated legal proceedings before a Dutch civil
court against Forward Energy (formerly known as PAO Fortum). The proceedings concern
intercompany loans of approximately EUR 600 million granted to PAO Fortum. The claim, including
interest and default interest, amounts to approximately EUR 800 million. The final amount will
depend on the RUB/EUR foreign exchange rate and amount of due interest.
Fennovoima’s Hanhikivi nuclear power plant project
RAOS Project Oy and JSC Rusatom Energy International and Fennovoima Oy are engaged in
International Chamber of Commerce (ICC) arbitration proceedings regarding Fennovoima's EPC
Contract for the Hanhikivi nuclear power plant project. RAOS Project Oy has requested also
Fortum and certain other parties to be joined in these proceedings. Fortum disputes the existence
of any contractual relation, obligation, or arbitration agreement between Fortum and RAOS Project
Oy. Therefore, Fortum is of the opinion that an arbitral tribunal has no jurisdiction to decide any
claims against Fortum. As Fortum is not a party to the agreement under dispute, it considers the
request to be completely unfounded and strongly opposes it.
Tax cases
In June 2024, the Belgian Supreme Court ruled in favour of Fortum in connection with Fortum's
income tax assessments in Belgium for the year 2008. The decision concerns Fortum's Belgian
financing company, Fortum EIF NV, which provided internal financing to a Swedish group company
to finance an acquisition in Russia. The amount of additional tax claimed for 2008 is EUR 36 million.
The tax had been paid and recognised as a receivable and it was repaid to Fortum in 2024. In
addition, Fortum received EUR 19 million pre-tax in interest income, which is recorded as financial
items in 2024. The decision is final and this is the last open year in Fortum's Belgian tax audits. The
previous court ruling was made in Fortum’s favour in 2022.
193
38 Related party transactions
38.1 The Finnish State and companies owned by
the Finnish State
At the end of 2024, the Finnish State owned 51.26% of the company’s shares (2023: 51.26%).
On 30 October 2023, Fortum announced that an agreement has been signed with the National
Emergency Supply Agency (NESA). Under this agreement, NESA reserves the production of the
Meri-Pori power plant for severe disruption and emergencies to guarantee security of supply in
the electricity system in Finland. The agreement period is from 1 April 2024 until 31 December
2026.
Fortum had a bridge financing arrangement with the Finnish State from September 2022 until
March 2023. In 2023, interest expenses and fees relating to the bridge loan facility amounted to
EUR 56 million and were recognised in Finance costs - net.
The Finnish Parliament has authorised the Government to reduce the Finnish State’s holding in
Fortum Corporation to no less than 50.1% of the share capital and voting rights.
All transactions between Fortum and other companies owned by the Finnish State are on arm’s
length basis.
38.2 Board of Directors and Fortum Leadership Team
The key management personnel of the Fortum Group are the members of Fortum Leadership
Team and the Board of Directors.
Fortum has not been involved in any material transactions with members of the Board of
Directors or Fortum Leadership Team. No loans exist to any member of the Board of Directors or
Fortum Leadership Team at 31 December 2024.
The total compensation (including pension benefits and social costs) for the key management
personnel for 2024 was EUR 11 million (2023: 10). See Note 10 Employee benefits and Board
remuneration for further information on the Board of Directors and Fortum Leadership Team
remuneration and shareholdings.
38.3 Associated companies and joint ventures
In the ordinary course of business, Fortum engages in transactions with associated companies,
joint ventures, and other related parties. These transactions are on the same commercial terms
as they would be with third parties, except for some associates and joint ventures, as noted
below.
Fortum owns shareholdings in associated companies and joint ventures which own hydro and
nuclear power plants. Under consortium agreements, each owner is entitled to electricity in
proportion to its share of ownership, or based on other agreement. In turn, each owner is liable
for an equivalent portion of costs, regardless of output. These associated companies and joint
ventures are not profit making since the owners purchase electricity at production cost,
including interest costs and production taxes. See Note 19 Participations in associated
companies and joint ventures.
38.4 Balances and transactions with related parties
Transactions with associates and joint ventures
Associated
companies
Joint ventures
Total
EUR million
2024
2023
2024
2023
2024
2023
Sales
0
2
9
9
9
12
Purchases
351
314
270
288
622
602
Other income
0
0
0
-3
0
-3
Interest income on loan receivables
17
13
7
5
24
18
Interest expense on loan payables
0
0
10
8
10
8
194
Balances with associates and joint ventures
Associated
companies
Joint ventures
Total
EUR million
2024
2023
2024
2023
2024
2023
Receivables
Long-term interest-bearing loan receivables
358
551
73
93
431
644
Trade and other receivables
2
3
24
27
26
30
Liabilities
Long-and short-term loan payables
0
7
232
232
232
239
Trade and other payables
7
15
69
57
75
72
See also Note 29 Nuclear-related assets and liabilities and Note 36 Pledged assets and
contingent liabilities for details on commitments related to associates and joint ventures. 
38.5 Pension funds
At 31 December 2024, Fortum has a pension fund in Finland, which is a stand-alone legal entity
managing pension assets related to part of the pension coverage in Finland. In 2024, there were
no contribution to these pension plans (2023: 0). See Note 31 Pension obligations.
The assets in the pension fund in Finland include Fortum shares representing 0.04% (2023:
0.04%) of the company’s outstanding shares. The loan granted by Fortum’s Finnish pension fund
has been secured by real estate mortgages of EUR 41 million (2023: 41). See Note 36 Pledged
assets and contingent liabilities.
39 Events after the balance sheet date
There have been no material events after the balance sheet date. 
195
40 Group companies by segment
G = Generation
1) Shares held by the parent company
CS = Consumer Solutions
O = Other Operations
Group holding % for companies owned via subsidiaries is based on the Fortum Corporation
ownership % in the direct subsidiary times the ownership % of the direct subsidiary in the
indirect subsidiary/associate/joint venture as of 31 December 2024.
Subsidiaries by segment
Entity Name
Domicile
Segment
Group
holding, %
Brändskogen Vindkraft Ab Oy
Finland
G
100.0
EX-KE Oy
Finland
CS
100.0
Fortum Alku Oy
Finland
O
100.0
Fortum Asiakaspalvelu Oy
Finland
CS
100.0
Fortum Assets Oy
Finland
O
100.0
Fortum Battery Recycling Oy
Finland
O
100.0
Fortum Bio Oy
Finland
O
100.0
Fortum Clean Oy
Finland
O
100.0
1)
Fortum Heat and Gas Oy
Finland
O
100.0
1)
Fortum Kasvu Oy
Finland
O
100.0
Fortum Markets Oy
Finland
CS
100.0
Fortum Norm Oy
Finland
O
100.0
1)
Fortum Power and Heat Holding Oy
Finland
G
100.0
Fortum Power and Heat Oy
Finland
G, O
100.0
1)
Fortum Real Estate Oy
Finland
O
100.0
1)
Fortum Renewables Oy
Finland
G
100.0
Fortum RES Oy
Finland
O
100.0
Fortum TwoGether Oy
Finland
G
100.0
1)
Frosart Oy
Finland
G
100.0
Honkamaan Tuulivoima Oy
Finland
G
100.0
Jeppo Vindkraft Ab Oy
Finland
G
100.0
Kalax Solkraft Ab/Oy
Finland
G
100.0
Katajamäen Tuulivoima Oy
Finland
G
100.0
Kemiönsaaren Aurinkovoima Oy
Finland
G
100.0
Koillis-Pohjan Energiantuotanto Oy
Finland
G
100.0
Korvenniityn Aurinkovoima Oy
Finland
G
100.0
Kotapalon Tuulivoima Oy
Finland
G
100.0
Kurikan Tuulivoima Oy
Finland
G
100.0
Entity Name
Domicile
Segment
Group
holding, %
Lamminnevan Tuulivoima Oy
Finland
G
100.0
Lautamäen Tuulivoima Oy
Finland
G
100.0
Marttilan Aurinkovoima Oy
Finland
G
100.0
Molpe Vindkraft Ab/Oy
Finland
G
100.0
Norrsarvlax Solkraft Ab/Oy
Finland
G
100.0
Närpes Vindkraft Ab/Oy
Finland
G
100.0
Oy Pauken Ab
Finland
O
100.0
Oy Tersil Ab
Finland
O
100.0
Oy Tertrade Ab
Finland
O
100.0
Penkkisuon Tuulivoima Oy
Finland
G
100.0
Pennalan Aurinkovoima Oy
Finland
G
100.0
Pjelax Vindkraft Ab/Oy
Finland
G
60.0
Poikel Vindkraft Ab/Oy
Finland
G
100.0
Tarvasjoen Aurinkovoima Oy
Finland
G
100.0
Virolahden Aurinkovoima Oy
Finland
G
100.0
Yliken Aurinkovoima Oy
Finland
G
100.0
Barry Danmark ApS
Denmark
O
100.0
Fortum CFS Eesti OU
Estonia
O
100.0
Fortum France S.A.S
France
G
100.0
Fortum Batterie Recycling GmbH
Germany
O
100.0
Fortum Service Deutschland GmbH
Germany
G, O
100.0
MAWAL Energie GmbH
Germany
O
100.0
SALWAL Energie GmbH
Germany
O
100.0
Fortum Insurance Limited
Guernsey
O
100.0
Fortum India Private Limited
India
G
100.0
Solar One Energy Private Limited
India
G
100.0
SolarXL Alpha Energy Private Limited
India
G
100.0
SolarXL Beta Energy Private Limited
India
G
100.0
SolarXL Delta Energy Private Limited
India
G
100.0
SolarXL Gamma Energy Private Limited
India
G
100.0
SolarXL Zeta Energy Private Limited
India
G
100.0
PT Fortum Energy Solution
Indonesia
G
95.0
Fortum eNext Ireland Ltd
Ireland
G
100.0
Fortum Finance Ireland Designated Activity Company
Ireland
O, G
100.0
1)
Fortum P&H Ireland Limited
Ireland
O
100.0
Fortum Participation Limited
Ireland
O
100.0
Fortum 2 B.V.
Netherlands
G
100.0
Fortum 3 B.V.
Netherlands
O
100.0
Fortum Energy Holding B.V.
Netherlands
CS, G, O
100.0
1)
Fortum H&C B.V.
Netherlands
G
100.0
196
Entity Name
Domicile
Segment
Group
holding, %
Fortum Holding B.V.
Netherlands
O
100.0
1)
Fortum Power Holding B.V.
Netherlands
O
100.0
Fortum Russia B.V.
Netherlands
O
100.0
Fortum SAR B.V.
Netherlands
G
100.0
Fortum Star B.V.
Netherlands
G
100.0
India Sun B.V.
Netherlands
G
100.0
PolarSolar B.V.
Netherlands
G
100.0
Yustek Holding B.V.
Netherlands
O
100.0
Fortum Consumer Solutions AS
Norway
CS, G, O
100.0
Fortum Hedging AS
Norway
G
100.0
Fortum Strøm AS
Norway
CS
100.0
Tellier Service AS
Norway
CS
100.0
Fortum Marketing and Sales Polska S.A.
Poland
CS
100.0
Fortum Network Częstochowa Sp. z o.o.
Poland
G
100.0
Fortum Network Płock Sp. z o.o.
Poland
G
100.0
Fortum Network Wrocław Sp. z o.o.
Poland
G
100.0
Fortum Power and Heat Polska Sp. z o.o.
Poland
G
100.0
Fortum Service Poland Sp. z o.o.
Poland
O
100.0
Fortum Silesia SA
Poland
G
100.0
Fortum Sprzedaż Sp. z o.o.
Poland
CS
100.0
Escandinava de Electricidad S.L.U
Spain
CS
100.0
Alvret Solpark AB
Sweden
G
100.0
Bankälla Solpark AB
Sweden
G
100.0
Bergsveden Solpark AB
Sweden
G
100.0
Blybergs Kraftaktiebolag
Sweden
G
66.7
Borgvik Vindkraft AB
Sweden
G
100.0
Brännälven Kraft AB
Sweden
G
67.0
Fortum 1 AB
Sweden
O
100.0
Fortum Fastigheter AB
Sweden
O
100.0
Fortum Förnyelsebar Sverige 2 AB
Sweden
G
100.0
Fortum Förnyelsebar Sverige 3 AB
Sweden
G
100.0
Fortum Förnyelsebar Sverige 4 AB
Sweden
G
100.0
Fortum Förnyelsebar Sverige 5 AB
Sweden
G
100.0
Fortum Förnyelsebar Sverige 6 AB
Sweden
G
100.0
Fortum Förnyelsebar Sverige 7 AB
Sweden
G
100.0
Fortum Förnyelsebar Sverige 8 AB
Sweden
G
100.0
Fortum Förnyelsebar Sverige 9 AB
Sweden
G
100.0
Fortum Förnyelsebar Sverige AB
Sweden
G
100.0
Fortum Grön AB
Sweden
O
100.0
Fortum Markets AB
Sweden
CS
100.0
Entity Name
Domicile
Segment
Group
holding, %
Fortum Power AB
Sweden
O
100.0
1)
Fortum Produktionsnät AB
Sweden
G
100.0
Fortum Sverige AB
Sweden
G, O
100.0
Fortum Sweden AB
Sweden
O
100.0
Fortum Vindkraft Sverige 3 AB
Sweden
G
100.0
Fortum Vindkraft Sverige 4 AB
Sweden
G
100.0
Fortum Vindkraft Sverige 8 AB
Sweden
G
100.0
Klinthögen Vindkraft AB
Sweden
G
100.0
Klöverkullen Vindkraft AB
Sweden
G
100.0
Mellansvensk Kraftgrupp Aktiebolag
Sweden
G
86.9
Nya Bullerforsen Kraft AB
Sweden
G
65.9
Oreälvens Kraftaktiebolag
Sweden
G
65.0
Sävar Vindkraft AB
Sweden
G
100.0
Uddeholm Kraft Aktiebolag
Sweden
G
100.0
Värmlandskraft-OKG-delägarna Aktiebolag
Sweden
G
73.3
Fortum Energy Limited
United Kingdom
O
100.0
Fortum O&M (UK) Limited
United Kingdom
O
100.0
Fortum Ratcliffe Limited
United Kingdom
O
100.0
IVO Energy Limited
United Kingdom
O
100.0
Valo Ventures I LP Fund
USA
O
99.0
197
Associated companies and joint ventures by segment
Entity Name
Country
Segment
Group
holding %
AskKauko Oy
Finland
O
16.5
Battery Intelligence Oy
Finland
O
32.9
Kemijoki Oy
Finland
G
28.3
Posiva Oy
Finland
G
40.0
Puro.earth Oy
Finland
O
16.6
Sallila Energia Oy
Finland
O
46.0
Teollisuuden Voima Oyj
Finland
G
25.8
Turun Seudun Energiantuotanto Oy
Finland
G
53.5
Turun Seudun Kaukolämpö Oy
Finland
G
30.0
Assam Bio Refinery Private Limited
India
O
40.3
Fortum Charge & Drive India Private Limited
India
G
59.0
Nordic Wind B.V.
Netherlands
G
20.0
Fortum Nordkraft Vind DA
Norway
G
50.0
Linnvasselv Kraftlag SA
Norway
G
50.0
Blåsjön Kraft AB
Sweden
G
50.0
Forsmarks Kraftgrupp Aktiebolag
Sweden
G
25.5
Horrmundsvalla Kraftaktiebolag
Sweden
G
50.0
OKG Aktiebolag
Sweden
G
45.5
Stensjön Kraft AB
Sweden
G
50.0
Tåsans Kraftaktiebolag
Sweden
G
40.0
Vattenkraftens Miljöfond Sverige AB
Sweden
G
22.6
Väsa Kraftaktiebolag
Sweden
G
50.0
Ångefallen Kraft AB
Sweden
G
50.0
South Clyde Energy Recovery Holdings Limited
United Kingdom
O
50.0
Non-consolidated companies
As a result of the Presidential decree (No. 302) issued by Russia on 25 April 2023 and the seizure
of Fortum’s Russian assets, Fortum lost control of its Russian operations. Consequently, the
Russia segment was deconsolidated in 2023. See also Note 2.1.1 Deconsolidation of Russia
segment in 2023.
Russian companies consolidated earlier as subsidiaries
Entity Name 1)
Fortum Wind Energy Joint Stock Company
Fortum-New Generation 3 Limited Liability Company
Fortum-New Generation 5 Limited Liability Company
Joint Stock Company Chelyabenergoremont
LLC Bugulchanskaya Solar power station
PAO Fortum Russia
Ural Heat Networks Company Joint Stock Company
Wind Power Assets Management LLC
Ulyanovsk Wind Farm LLC
1) Entity names as of March 2023.
Russian companies consolidated earlier as associated companies or
joint ventures
Entity Name 1)
Fortum-New Generation 4 Limited Liability Company
TGC1 Territorial Generating Company 1
Ural energy retail LLC
1) Entity names as of March 2023.
198
Key figures
Financial key figures
For information of Alternative Performance Measures used by Fortum, see Definitions and
reconciliations of key figures and Note 1 Material accounting policies.
Fortum’s consolidated income statement and consolidated cash flow statement include the
Russia segment as discontinued operations in 2023. For further information, see Note 1 Material
accounting policies, Note 2 Critical accounting estimates and judgements and Note 3
Acquisitions, disposals and discontinued operations.
Key figures, continuing operations
EUR million or as indicated
2024
2023
Income statement
Reported
Sales
5,800
6,711
EBITDA
1,704
2,021
Operating profit
1,325
1,662
- of sales %
22.8
24.8
Share of profit of associates and joint ventures
19
59
Profit before income tax
1,399
1,583
- of sales %
24.1
23.6
Net profit
1,160
1,515
Net profit (after non-controlling interests)
1,164
1,514
Comparable
EBITDA
1,556
1,903
Operating profit
1,178
1,544
Share of profit of associates and joint ventures
-30
7
Net profit (after non-controlling interests)
900
1,150
EUR million or as indicated
2024
2023
Cash flow, key ratios and other data
Capital expenditure and gross investments in shares
516
664
- of sales %
8.9
9.9
Capital expenditure
483
611
Net cash from operating activities
1,392
1,710
Financial net debt/comparable EBITDA
0.2
0.5
Research and development expenditure
31
56
- of sales %
0.5
0.8
Average number of employees
5,301
5,205
Key figures, total of continuing and discontinued operations
EUR million or as indicated
2024
2023
Income statement
Reported
Net profit (after non-controlling interests)
1,164
-2,069
Comparable
Net profit (after non-controlling interests)
900
1,184
Financial position and cash flow
Capital employed
13,981
14,408
Financial net debt
367
942
Net cash from operating activities
1,392
1,819
Key ratios
Return on shareholders' equity, %
13.1
-25.5
Interest coverage
-169.3
-16.8
Interest coverage including capitalised borrowing costs
-75.5
-19.7
Gearing, %
4
11
Equity-to-assets ratio, %
53
45
Other data
Dividends
1,256
1)
1,032
Average number of employees
5,301
6,042
1)Board of Directors’ proposal for the planned Annual General Meeting on 1 April 2025.
See Definitions and reconciliations of key figures.
199
Share key figures
EUR or as indicated
2024
2023
Data per share
Earnings per share, total Fortum
1.30
-2.31
Earnings per share, continuing operations
1.30
1.68
Earnings per share, discontinued operations
—
-3.99
Comparable earnings per share, total Fortum
1.00
1.32
Comparable earnings per share, continuing operations
1.00
1.28
Comparable earnings per share, discontinued operations
—
0.04
Cash flow per share, total Fortum
1.55
2.03
Cash flow per share, continuing operations
1.55
1.91
Cash flow per share, discontinued operations
—
0.12
Equity per share
10.11
9.40
Dividend per share 1)
0.90
2)
1.15
Special dividend per share
0.50
2)
—
Total dividend per share
1.40
2)
1.15
Payout ratio, % 3)
90
2)
90
Total payout ratio, % 3)
140
2)
90
Dividend yield, %
10.4
2)
8.8
Price/earnings ratio (P/E) 4)
10.4
7.8
Share prices
At the end of the period
13.52
13.06
Average
13.14
12.94
Lowest
10.83
10.25
Highest
15.01
16.18
Other data
Market capitalisation at the end of the period, EUR million
12,127
11,718
Trading volumes 5)
Number of shares, 1,000 shares
433,363
412,322
In relation to weighted average number of shares, %
48.3
46.0
Average number of shares, 1,000 shares
897.264
897.264
Diluted adjusted average number of shares, 1,000 shares
897.264
897.264
Number of registered shares, 1,000 shares
897.264
897.264
1)Dividend according to dividend policy.
2)Board of Directors’ proposal for the planned Annual General Meeting on 1 April 2025.
3)Payout ratio is calculated based on comparable earnings per share from continuing operations.
4)Price/earnings ratio is calculated based on earnings per share from continuing operations.
5)Trading volumes in the table represent volumes traded on Nasdaq Helsinki. In addition to the Nasdaq Helsinki, Fortum
shares were traded on several alternative market places, for example at Cboe and Turquoise, and on the OTC market.
During 2024, approximately 69% (2023: 78%) of Fortum’s shares were traded on markets other than the Nasdaq
Helsinki Ltd.
See Definitions and reconciliations of key figures
Sustainability key figures
Comparative figures for 2023 have not been assured.
2024
2023
Total market-based GHG emissions, Scope 1-3, million tonnes (Mt) CO2-eq 1)
12.9
14.1
Direct Scope 1 GHG emissions, Mt CO2-eq
1.4
1.6
Indirect market-based Scope 2 GHG emissions, Mt CO2-eq
0.02
0.04
Indirect GHG emissions, Scope 3, Mt CO2-eq
11.5
12.5
Specific CO2 emissions from total energy production, gCO2/kWh 2)
26
31
Nitrogen oxides (NOx) emissions, tonnes 3)
1,378
1,547
Sulphur dioxide (SO2) emissions, tonnes 3)
617
849
Major environmental incidents, no.
1
2
Share of coal of sales, %
3
3
Share of fossil fuels of sales, %
12
11
Total Recordable Injury Frequency (TRIF), own personnel and contractors, injuries
per million working hours
4.0
5.0
1)In 2024, Fortum updated the GHG inventory process to improve its accuracy and completeness and recalculated GHG
emissions for 2023, which decreased total Scope 1, 2, and 3 emissions by 0.2 Mt CO2-eq.
2)Year 2023 figure has been recalculated to align with changes in the calculation process, which decreased annual specific
CO2 emissions for energy production and power generation by 1 gCO2/kWh.
3) Figures exclude the recycling and waste business divested in November 2024.
Turnover KPI, %
2024
2023
A.1 Environmentally sustainable activities (Taxonomy-aligned)
49
43
A.2 Taxonomy-eligible but not environmentally sustainable activities (not
Taxonomy-aligned)
1
7
A. Total Taxonomy-eligible activities
50
50
Operating expenses KPI, %
2024
2023
A.1 Environmentally sustainable activities (Taxonomy-aligned)
75
56
A.2 Taxonomy-eligible but not environmentally sustainable activities (not
Taxonomy-aligned)
4
21
A. Total Taxonomy-eligible activities
79
77
Capital expenditure KPI, %
2024
2023
A.1 Environmentally sustainable activities (Taxonomy-aligned)
74
64
A.2 Taxonomy-eligible but not environmentally sustainable activities (not
Taxonomy-aligned)
2
12
A. Total Taxonomy-eligible activities
76
76
200
Segment key figures
Sales by segment
EUR million
2024
2023
Generation
3,795
4,420
- of which internal
307
394
Consumer Solutions
3,073
3,766
- of which internal
5
20
Other Operations
596
548
- of which internal
157
99
Eliminations and Netting of Nord Pool transactions
-1,664
-2,024
Total continuing operations
5,800
6,711
Comparable operating profit by segment
EUR million
2024
2023
Generation
1,218
1,679
Consumer Solutions
76
38
Other Operations
-116
-173
Total continuing operations
1,178
1,544
Impairment charges and reversals
-17
0
Capital gains and other related items
183
4
Changes in fair values of derivatives hedging future cash flow
-61
111
Other
43
3
Operating profit, continuing operations
1,325
1,662
Comparable EBITDA by segment
EUR million
2024
2023
Generation
1,421
1,874
Consumer Solutions
161
108
Other Operations
-26
-80
Total continuing operations
1,556
1,903
Depreciation and amortisation by segment
EUR million
2024
2023
Generation
204
195
Consumer Solutions
85
70
Other Operations
90
93
Total continuing operations
379
359
Comparable share of profit of associates and joint ventures
by segment
EUR million
2024
2023
Generation
-26
7
Other Operations
-3
0
Total continuing operations
-30
7
Share of profit of associates and joint ventures by segment
EUR million
2024
2023
Generation
22
59
Other Operations
-3
0
Total continuing operations
19
59
Capital expenditure by segment
EUR million
2024
2023
Generation
355
450
Consumer Solutions
71
81
Other Operations
57
81
Total continuing operations
483
611
Gross investments in shares by segment
EUR million
2024
2023
Generation
0
5
Consumer Solutions
0
22
Other Operations
33
26
Total continuing operations
33
53
201
Gross divestments of shares by segment
EUR million
2024
2023
Generation
34
0
Other Operations
751
4
Total continuing operations
785
4
Comparable net assets by segment
EUR million
2024
2023
Generation
7,608
7,263
Consumer Solutions
725
838
Other Operations
222
840
Total continuing operations
8,554
8,941
Comparable return on net assets by segment
%
2024
2023
Generation
16.0
24.2
Consumer Solutions
11.2
4.5
Average number of employees
2024
2023
Generation
1,968
1,735
Consumer Solutions
1,176
1,232
Other Operations
2,158
2,237
Total continuing operations
5,301
5,205
202
Definitions and reconciliations of key figures
Alternative performance measures
Business
performance
Definition
Reason to use the measure
Reference to
reconciliation
Comparable
EBITDA
Operating profit + depreciations and
amortisations - items affecting
comparability
Comparable EBITDA is
representing the underlying cash
flow generated by the total
Group and segments. Used as a
component in the capital
structure target of Financial net
debt to Comparable EBITDA.
Note 5
Capital risk
management
Comparable
operating
profit
Operating profit - items affecting
comparability
Comparable operating profit is
used in financial target setting
and forecasting, management's
follow up of financial
performance and allocation of
resources in the group's
performance management
process.
Income
statement
Items
affecting
comparability
Impairment charges and reversals +
capital gains and other related items +
changes in fair values of derivatives
hedging future cash flow + other
Component used in calculating
comparable operating profit and
comparable EBITDA.
Income
statement
Impairment
charges and
reversals
Impairment charges and related
provisions (mainly dismantling), as well
as the reversal of previously recorded
impairment charges. Impairment
charges are adjusted from depreciation
and amortisation, and reversals from
other income.
Component used in calculating
comparable operating profit and
comparable EBITDA.
Income
statement
Capital gains
and other
related items
Capital gains and transaction costs
from acquisitions, which are adjusted
from other income and other expenses
respectively. Profits are reported in
comparable operating profit, if this
reflects the business model.
Component used in calculating
comparable operating profit and
comparable EBITDA.
Income
statement
Changes in
fair values of
derivatives
hedging
future cash
flow
Effects from financial derivatives
hedging future cash-flows where
hedge accounting is not applied or own
use exemption cannot be used
according to IFRS 9 and are adjusted
from other income or expenses to sales
and materials and services respectively
when calculating Fortum's alternative
performance measures.
Component used in calculating
comparable operating profit and
comparable EBITDA.
Income
statement
Business
performance
Definition
Reason to use the measure
Reference to
reconciliation
Other
Restructuring and cost
management expenses, and
other miscellaneous non-
operating items, which are
adjusted mainly from materials
and services or other expenses.
Component used in calculating
comparable operating profit and
comparable EBITDA.
Income statement
Comparable
share of
profit/loss of
associates
and joint
ventures
Share of profit/loss of
associates and joint ventures +/-
significant adjustments for
share of profit /loss in
associates and joint ventures.
Component used in calculating
comparable net profit and
comparable return on net assets.
Note 7 Comparable
operating profit and
comparable net
profit
Comparable
finance-costs
– net
Finance costs – net +/- return
from nuclear funds, nuclear fund
adjustment and unwinding of
nuclear provisions +/- fair value
changes on financial items +/-
impairment charges and
reversals of previously recorded
impairment charges on financial
items and other one time
adjustments.
Component used in calculating
comparable net profit.
Note 7 Comparable
operating profit and
comparable net
profit
Comparable
profit before
income tax
Comparable operating profit +/-
comparable share of profit/loss
of associates and joint ventures
+/- comparable finance costs –
net.
Subtotal in comparable net profit
calculation.
Note 7 Comparable
operating profit and
comparable net
profit
Comparable
income tax
expense
Income tax expense excluding
taxes on items affecting
comparability, adjustments to
finance costs – net, tax rate
changes and other one time
adjustments.
Component used in calculating
comparable net profit.
Note 7 Comparable
operating profit and
comparable net
profit
Comparable
net profit
Comparable operating profit +/-
comparable share of profit/loss
of associates and joint ventures
+/- comparable finance costs –
net +/- comparable income tax
expense +/- comparable non-
controlling interests.
Comparable net profit is used to
provide additional financial
performance indicators to
support meaningful comparison
of underlying net profitability
between periods.
Note 7 Comparable
operating profit and
comparable net
profit
203
Business
performance
Definition
Reason to use the measure
Reference to
reconciliation
Comparable
earnings per
share
Comparable net profit
Comparable earnings per share
is used to provide additional
financial performance
indicators to support
meaningful comparison of
underlying net profitability
between periods.
Note 7
Comparable
operating profit
and comparable
net profit
Average number of shares
during the period
Comparable
return on net
assets, %
Comparable operating profit
+ comparable share of profit/
loss in associates and joint
ventures
x 100
Comparable return on net
assets is used in financial target
setting and forecasting,
management's follow up of
financial performance and
allocation of resources in the
group's performance
management process.
Note 6 Segment
reporting
Comparable net assets
average
Comparable
net assets
Non-interest-bearing assets -
non-interest-bearing
liabilities - provisions (non-
interest-bearing assets and
liabilities do not include
finance related items, tax and
deferred tax and assets and
liabilities from fair valuations
of derivatives used for
hedging future cash flows).
Comparable net assets is a
component in Comparable
return on net assets calculation
where return on capital
allocated directly to the
businesses is measured.
Note 6 Segment
reporting
Capital
structure
Definition
Reason to use the measure
Reference to
reconciliation
Financial net
debt /
comparable
EBITDA
Financial net debt
Financial net debt to comparable
EBITDA is Fortum's long-term
financial target for capital
structure.
Note 5 Capital risk
management
Comparable EBITDA
Financial net
debt
Interest-bearing liabilities - liquid
funds - securities in interest-
bearing receivables +/- net
margin liabilities/receivables
Financial net debt is used in the
follow-up of the indebtedness of
the group and it is a component
in the capital structure target of
Financial net debt to Comparable
EBITDA.
Note 27 Interest-
bearing liabilities
Capital
employed
Total assets - total non-interest
bearing liabilities
Capital employed is the book
value of the invested capital and
it was used as a component
when calculating the Return of
capital employed in the group.
Note 6 Segment
reporting
See Note 1.4 Measures for performance and Note 7 Comparable operating profit and
comparable net profit.
Alternative performance measures excluding Russia
Capital
structure
Definition
Reason to use the measure
Reference to
reconciliation
Financial net
debt/
comparable
EBITDA excl.
Russia
Financial net debt, excl. Russia
Financial net debt/comparable
EBITDA excluding Russia is an
additional financial performance
indicator to support meaningful
comparison of the capital
structure for Fortum's strategic
businesses.
Note 5 Capital risk
management
Comparable EBITDA from
continuing operations excl.
Russia
Financial net
debt excl.
Russia
Financial net debt - Interest-
bearing liabilities, Russia + Liquid
funds, Russia
Financial net debt excluding
Russia is an additional financial
performance indicator to support
meaningful comparison in the
follow-up of the indebtedness of
the group and it is a component
in the calculation of Financial net
debt to Comparable EBITDA
excluding Russia.
Note 5 Capital risk
management
204
Other key figures
Share based key figures
Earnings per share (EPS)
Profit for the period - non-controlling interests
Average number of shares during the period
Cash flow per share
Net cash from operating activities
Average number of shares during the period
Equity per share
Shareholders' equity
Number of shares at the end of the period
Payout ratio, %
Dividend per share
x 100
Comparable earnings per share
Total payout ratio, %
Total dividend per share
x 100
Comparable earnings per share
Dividend yield, %
Total dividend per share
x 100
Share price at the end of the period
Price/earnings (P/E)
ratio
Share price at the end of the period
Earnings per share
Average share price
Amount traded in euros during the period
Number of shares traded during the period
Market capitalisation
Number of shares at the end of the period x share price at the end of
the period
Trading volumes
Number of shares traded during the period in relation to the weighted
average number of shares during the period
Other key figures
EBITDA
Operating profit + depreciations and amortisations
Funds from operations (FFO)
Net cash from operating activities before change in working capital
Capital expenditure
Capitalised investments in property, plant and equipment and
intangible assets including maintenance, productivity, growth and
investments required by legislation including borrowing costs
capitalised during the construction period. Maintenance investments
expand the lifetime of an existing asset, maintain usage/availability
and/or maintains reliability. Productivity investments improve
productivity in an existing asset. Growth investments' purpose is to
build new assets and/or to increase customer base within existing
businesses. Legislation investments are done at certain point of time
due to legal requirements.
Gross investments in 
shares
 
 
Investments in subsidiary shares, shares in associated companies
and joint ventures and other investments. Investments in subsidiary
shares are net of liquid funds and grossed with interest-bearing
liabilities and other items included in financial net debt in the
acquired company.
Return on shareholders' equity (ROE), %
Profit for the year
x 100  
Total equity average
Gearing, %
Financial net debt
x 100
Total equity including non-controlling interests
Equity-to-assets ratio, %
Total equity including non-controlling interests
x 100
Total assets
Interest coverage
Operating profit
Net interest expenses
Interest coverage 
including capitalised borrowing costs
Operating profit
Net interest expenses - capitalised borrowing costs
Average number of employees
Average of the number of employees at the end of each calendar
month during the period and at the end of the previous period
205
Tax key figures
Effective income tax rate,%
Income tax expense
x 100  
Profit before income tax
Comparable effective
income tax rate, %
Comparable income tax
 x 100
Comparable profit before income tax excluding comparable share of
profit/loss from associated companies and joint ventures
Weighted average
applicable income tax rate
Sum of the proportionately weighted share of profits before taxes of each of the
group’s operating country multiplied by an applicable nominal tax rate of the
respective countries.
Sustainability key figures
Total market-based GHG
emissions (Scope 1-3), million
tonnes CO2-eq
Sum of Fortum's Scope 1, 2 and 3 GHG emissions.
Direct Scope 1 GHG
emissions, million tonnes
CO2-eq
Direct GHG emissions from sources owned and controlled by Fortum.
Indirect market-based Scope
2 GHG emissions, million
tonnes CO2-eq
Indirect GHG emissions from the generation of purchased or acquired
electricity, steam, heat and cooling consumed by Fortum.
Indirect GHG emissions,
Scope 3, million tonnes CO2 -
eq
All indirect GHG emissions (not included in Scope 2 GHG emissions) that occur
in Fortum's value chain, including both upstream and downstream emissions.
Scope 3 GHG emissions can be broken down into Scope 3 categories (1-15).
Specific CO2 emissions from
total energy production,
gCO2/kWh
Direct CO2 emissions from power and heat production / produced energy.
Nitrogen oxides (NOx)
emissions, tonnes
Nitrogen oxides emissions produced in fuel combustion.
Sulphur dioxide (SO2)
emissions, tonnes
Sulphur dioxide emissions produced in fuel combustion.
Major environmental
incidents, number
Environmental incidents that resulted in significant harm to the environment
(ground, water, air) or an environmental non-compliance with legal or regulatory
requirements.
Share of coal of sales, %
Power and heat sales from coal / total sales x 100.
Share of fossil fuels of sales,
%
Sales of fossil-based power and heat production and gas / total sales x 100.
Total Recordable Injury
Frequency (TRIF), own
personnel and contractors
Injuries per million working hours.
EU Taxonomy Turnover KPI
Taxonomy-aligned or Taxonomy-eligible (not aligned) sales / total sales x 100.
Turnover is based on the sales reported on Fortum’s consolidated income
statement.
EU Taxonomy Operating
expenses KPI
Taxonomy-aligned or Taxonomy-eligible (not aligned) operating expenses /
total operating expenses x 100. Operating expenses consist of direct non-
capitalised costs that are necessary to ensure the continued and effective
functioning of property, plant and equipment. These expenses include repairs
and maintenance, building servicing, short-term rentals and similar costs, as
well as other direct expenditures relating to the day-to-day servicing of these
assets.
EU Taxonomy Capital
expenditure KPI
Taxonomy-aligned or Taxonomy-eligible (not aligned) capital expenditure / total
capital expenditure x 100. Capital expenditure consists of additions to property,
plant and equipment, intangible assets, right-of-use assets, as well as additions
through business combinations.
EU Taxonomy Capital
expenditure plan
The Capital expenditure plan refers to significant future capital investments
approved by management that aim either to expand Fortum’s Taxonomy-
aligned economic activities, or to upgrade Taxonomy-eligible economic
activities to render them Taxonomy-aligned within a period of five years.
206
Reconciliations of alternative performance measures
Comparable EBITDA
EUR million
Note
2024
2023
Operating profit
1,325
1,662
+ Depreciation and amortisation
379
359
EBITDA
1,704
2,021
- Items affecting comparability
7
-147
-118
Comparable EBITDA
1,556
1,903
Comparable operating profit
EUR million
Note
2024
2023
Operating profit
1,325
1,662
- Items affecting comparability
7
-147
-118
Comparable operating profit
7
1,178
1,544
Items affecting comparability
EUR million
Note
2024
2023
Impairment charges and reversals
-17
0
Capital gains and other related items
3
183
4
Changes in fair values of derivatives hedging future cash flow
-61
111
Other
43
3
Items affecting comparability
7
147
118
Comparable net profit
EUR million
Note
2024
2023
Net profit
1,160
1,515
-  Items affecting comparability
7
-147
-118
- Adjustments to share of profit/loss of associates and joint ventures
19
-49
-52
- Adjustments to finance costs - net
11
-91
2
- Adjustments to income tax expenses
20
-201
-  Non-controlling interests
4
-1
- Adjustments to non-controlling interests
3
5
Comparable net profit from continuing operations
7
900
1,150
Comparable net profit from discontinued operations
—
34
Comparable net profit, total Fortum
900
1,184
Comparable earnings per share
Note
2024
2023
Comparable net profit from continuing operations, EUR million
7
900
1,150
Average number of shares during the period, 1,000 shares
897,264
897,264
Comparable earnings per share from continuing operations, EUR
1.00
1.28
Comparable net profit from discontinued operations, EUR million
7
—
34
Average number of shares during the period, 1,000 shares
897,264
897,264
Comparable earnings per share from discontinued operations, EUR
—
0.04
Comparable net profit, total Fortum, EUR million
7
900
1,184
Average number of shares during the period, 1,000 shares
897,264
897,264
Comparable earnings per share, total Fortum, EUR
1.00
1.32
Financial net debt
EUR million
Note
2024
2023
+ Interest-bearing liabilities
4,828
5,909
- Liquid funds
4,136
4,183
- Collateral arrangement
213
325
- Margin receivables
205
590
+Margin liabilities
93
131
+/- Net margin liabilities/receivables
-111
-459
Financial net debt
26
367
942
207
Financial net debt/comparable EBITDA
EUR million
Note
2024
2023
+ Interest-bearing liabilities
4,828
5,909
- Liquid funds
4,136
4,183
- Collateral arrangement
213
325
- Margin receivables
205
590
+ Margin liabilities
93
131
+/- Net margin liabilities/receivables
-111
-459
Financial net debt
27
367
942
Operating profit
1,325
1,662
+ Depreciation and amortisation
379
359
EBITDA
1,704
2,021
- Items affecting comparability
-147
-118
Comparable EBITDA from continuing operations
1,556
1,903
Financial net debt/comparable EBITDA
0.2
0.5
208
Parent company financial statements,
Finnish GAAP (FAS)
Income statement
EUR
Note
2024
2023
Sales
2
175,213,490
144,713,777
Other income
3
9,589,707
13,055,373
Employee benefits
4
-64,511,313
-53,437,342
Depreciation, amortisation and write-downs
8
-6,622,031
-15,988,129
Other expenses
-141,395,048
-141,545,828
Operating loss
-27,725,195
-53,202,149
Financial income and expenses
6
1,034,041,010
1,808,907,989
Profit before appropriations and income tax
1,006,315,815
1,755,705,840
Appropriations
42,966
509,100
Group contributions received 1)
504,187,000
204,740,000
Profit before income tax
1,510,545,781
1,960,954,941
Income tax expense
7
-103,773,537
-38,082,254
Profit for the year
1,406,772,244
1,922,872,686
1)Taxable profits transferred from Finnish subsidiaries.
209
Balance sheet
EUR
Note
31 Dec 2024
31 Dec 2023
ASSETS
Non-current assets
Intangible assets
8
11,860,485
16,581,368
Property, plant and equipment
8
2,035,331
3,266,489
Shares in Group companies
8
13,184,062,186
13,865,677,978
Interest-bearing receivables from Group companies
8
3,936,597,398
5,731,846,207
Interest-bearing receivables from associated companies
8
0
4
Other non-current assets
8
110,000
209,997
Derivative financial instruments
13, 14
109,243,047
131,679,649
Deferred tax assets
1,799,063
1,588,824
Total non-current assets
17,245,707,511
19,750,850,516
Current assets
Other current receivables from Group companies
9
561,170,142
239,602,839
Other current receivables from associated companies
421,592
62,012
Derivative financial instruments
13, 14
82,979,845
335,380,705
Other current receivables
9
30,721,594
197,233,137
Cash and cash equivalents
4,089,834,931
4,131,705,497
Total current assets
4,765,128,104
4,903,984,190
Total assets
22,010,835,614
24,654,834,706
EUR
Note
31 Dec 2024
31 Dec 2023
EQUITY
Shareholders' equity
10
Share capital
3,046,185,953
3,046,185,953
Share premium
2,821,690,902
2,821,690,902
Hedging reserve
8,180,510
13,698,987
Retained earnings
6,365,783,496
5,474,764,945
Profit for the year
1,406,772,244
1,922,872,686
Total equity
13,648,613,105
13,279,213,474
Accumulated appropriations
1,381,380
1,424,346
Provisions for liabilities and charges
284,154
486,167
LIABILITIES
Non-current liabilities
External interest-bearing liabilities
11, 13, 14
3,847,085,184
4,043,889,936
Interest-bearing liabilities to Group companies
3,744,495,197
5,609,325,007
Interest-bearing liabilities to associated companies
232,341,184
232,341,184
Derivative financial instruments
13, 14
61,978,295
99,107,901
Other non-current liabilities
6,085,411
6,820,284
Total non-current liabilities
7,891,985,272
9,991,484,313
Current liabilities
External interest-bearing liabilities
11
192,088,813
933,853,860
Trade and other payables to Group companies
12
49,987,005
31,494,526
Trade and other payables to associated companies
12
10,304,648
14,761,450
Derivative financial instruments
13, 14
59,369,982
261,688,391
Trade and other payables
12
156,821,256
140,428,178
Total current liabilities
468,571,702
1,382,226,406
Total liabilities
8,360,556,974
11,373,710,719
Total equity and liabilities
22,010,835,614
24,654,834,706
210
Cash flow statement
EUR 1,000
2024
2023
Cash flow from operating activities
Profit for the year
1,406,772
1,922,873
Adjustments:
Income tax expense
103,774
38,082
Group contributions
-504,187
-204,740
Finance costs - net
-1,034,041
-1,808,908
Depreciation, amortisation, write-downs and appropriations
6,579
15,479
Operating profit before depreciation (EBITDA)
-21,103
-37,214
Non-cash flow items
-128,228
513
Interest and other financial income received
423,633
535,091
Interest and other financial expenses paid
-388,161
-476,789
Dividends received
1,116,524
2,666,297
Group contributions received
204,740
24,013
Realised foreign exchange gains and losses
49,098
-153,406
Income taxes paid
-86,597
-101,571
Funds from operations
1,169,906
2,456,935
Other short-term receivables increase(-)/decrease(+)
-18,974
2,832
Other short-term payables increase(+)/decrease(-)
11,669
-32,077
Change in working capital
-7,306
-29,245
Net cash from operating activities
1,162,601
2,427,690
Cash flow from investing activities
Capital expenditures
-1,548
167
Acquisition of shares and capital contributions in subsidiaries
0
-500,070
Capital return from other companies
12
0
Proceeds from sales of shares
687,789
594
Proceeds from sales of property, plant and equipment
0
69
Change in interest-bearing receivables and other non-current assets
1,961,830
6,193,527
Net cash used in investing activities
2,648,082
5,694,287
Cash flow before financing activities
3,810,683
8,121,977
EUR 1,000
2024
2023
Cash flow from financing activities
Proceeds from long-term liabilities
0
1,675,026
Payment of long-term liabilities
-916,703
-1,601,857
Change in cashpool liabilities
-1,864,830
-5,131,718
Change in short-term liabilities
-39,167
-1,718,510
Dividends paid
-1,031,854
-816,722
Net cash from financing activities
-3,852,554
-7,593,781
Net increase(+)/decrease(-) in liquid funds
-41,871
528,196
Liquid funds at the beginning of the year
4,131,705
3,603,509
Liquid funds at the end of the year
4,089,835
4,131,705
211
Notes to the Parent Company
Financial Statements, FAS
1 Accounting policies and principles
The financial statements of Fortum Oyj for the year ended 31 December 2024 are prepared in
accordance with Finnish Accounting Standards (FAS).
1.1 Sales
Sales include sales revenue from actual operations and exchange rate differences on trade
receivables, less discounts and indirect taxes such as value added tax.
1.2 Other income
Other income includes gains on the sales of property, plant and equipment and shareholdings,
as well as all other operating income not related to the sales of products or services, such as
rents.
1.3 Foreign currency items and derivative instruments
Transactions denominated in foreign currencies have been valued using the exchange rate at
the date of the transaction. Receivables and liabilities denominated in foreign currencies
outstanding on the balance sheet date have been valued using the exchange rate quoted on the
balance sheet date. Exchange rate differences have been entered in the financial net in the
income statement.
Fortum Oyj enters into derivative contracts mainly for hedging foreign exchange and interest
rate exposures in Fortum Group.
Fortum Oyj applies IFRS 9 Financial Instruments standard for derivative instruments and hedge
accounting in statutory financial statements. Accounting principles on financial derivatives, see
Note 4 Financial risk management, Note 15 Financial assets and liabilities by categories and
Note 16 Financial assets and liabilities by fair value hierarchy in the Consolidated financial
statements.
1.4 Income taxes
Income taxes presented in the income statement consist of accrued taxes for the financial year
and tax adjustments for prior years.
1.5 Shares in group companies
The balance sheet value of shares in group companies consists of historical costs less write-
downs. If the estimated future cash flows generated by a non-current asset are expected to be
permanently lower than the carrying amount, an adjustment to the value is made to write-down
the difference as an expense. If the basis for the write-down can no longer be justified at the
balance sheet date, it is reversed.
1.6 Intangible assets and property, plant and equipment
The balance sheet value of intangible assets and property, plant and equipment consists of
historical costs less depreciation and possible write-downs. Intangible assets and property,
plant and equipment are depreciated using straight-line depreciation based on the expected
useful life of the asset.
The depreciation is based on the following expected useful lives:
Machinery and equipment3–5 years
Intangible assets5–10 years
1.7 Pension expenses
Pension obligations are covered through a compulsory pension insurance policy or pension fund.
Costs for pension fund are recorded in the income statement based on contributions paid
pursuant to the Finnish pension laws and regulations.
1.8 Long-term incentive programmes
Costs related to the long-term incentive plans are accrued over the earnings period and the
related liability is booked to the balance sheet.
1.9 Provisions
Foreseeable future expenses and losses that have no corresponding revenue to which Fortum is
committed or obliged to settle, and whose monetary value can be reasonably assessed, are
entered as expenses in the income statement and included as provisions on the balance sheet.
212
2 Sales by market area
EUR 1,000
2024
2023
Finland 
94,868
74,785
Other countries
80,345
69,929
Total
175,213
144,714
3 Other income
EUR 1,000
2024
2023
Rental and other income
9,590
13,055
Total
9,590
13,055
4 Employee benefits
EUR 1,000
2024
2023
Personnel expenses
Wages, salaries and remunerations
51,161
39,832
Indirect employee costs
Pension costs  
9,100
8,048
Other indirect employee costs
1,454
1,527
Other personnel expenses
2,796
4,030
Total
64,511
53,437
2024
2023
EUR 1,000
Markus
Rauramo,
President and
CEO
Markus
Rauramo,
President and
CEO
Compensation for the President and CEO
Salaries and fringe benefits
1,586
1,613
Short-term incentives
239
0
Long-term incentives
459
798
Pensions (statutory)
296
280
Pensions (voluntary)
315
315
Social security expenses
42
58
Total
2,937
3,064
EUR 1,000
2024
2023
Compensation for the Board of Directors
916
836
The compensation above is presented on accrual basis. Paid salaries and remunerations for the
President and CEO Markus Rauramo were EUR 1,589 thousand (2023: 1,617).
On 6 September 2022, Fortum announced that it had agreed with the Finnish State on a bridge
financing arrangement. In accordance with the Solidium bridge financing facility with the Finnish
State, Fortum Leadership Team members are not be paid any short- or long-term incentives
accumulated in 2022 and 2023, nor could they participate in 2023 ESS plan. In addition, FLT
members have also voluntarily waived the shares that are not subject to restrictions of the
bridge financing facility and that were scheduled for delivery in spring 2024. However, costs for
these plans were accrued over the vesting period.
For the President and CEO Markus Rauramo the retirement age is determined in accordance
with the Finnish Employees’ Pension Act. The pension obligations are covered through insurance
company.
Board members are not in an employment relationship or service contract with Fortum, and they
are not given the opportunity to participate in Fortum’s STI or LTI programme, nor does Fortum
have a pension plan that they can opt to take part in. The compensation of the board members
is not tied to the sustainability performance of the Group.
See Note 10 Employee benefits and Board remuneration and Note 31 Pension obligations in the
Consolidated financial statements.
2024
2023
Average number of employees
505
459
5 Auditor's fees
EUR 1,000
2024
2023
Audit fees
514
338
Audit-related assignments
235
241
Tax assignments
15
58
Total
765
637
Deloitte Oy is the appointed auditor until the next Annual General Meeting, to be held in 2025.
Audit fees include fees for the audit of the consolidated financial statements, review of interim
reports, as well as fees for the audit of Fortum Corporation. In 2024 the audit fees also include
the limited assurance of the sustainability statement. Audit-related assignments include fees for
other assurance and associated services related to the audit.
213
6 Financial income and expenses
EUR 1,000
2024
2023
Dividend income from group companies 1)
1,116,524
2,666,297
Interest and other financial income from group companies
272,333
436,139
Interest and other financial income from associated companies
0
65
Loss/Gain on sale of shares to other group companies
128,086
-15,240
Write-downs of participations in group companies
-250,088
-856,963
Interest and other financial income
163,644
133,942
Exchange rate differences
11,176
-28,700
Changes in fair values of derivatives
-1,373
-6,734
Interest and other financial expenses to group companies
-198,854
-313,595
Interest and other financial expenses
-207,407
-206,303
Total
1,034,041
1,808,908
Interest income
427,419
559,086
Interest expenses
-398,477
-504,798
Interest costs - net
28,942
54,287
1) In 2024, the amount includes dividend income EUR 250 million from Fortum Waste Solutions Oy, which is not part of the
group at 31 December 2024.
In 2023, due to the loss of control of the Russian operations in April 2023, Fortum Oyj wrote
down shares in subsidiaries amounting to EUR 857 million.
7 Income tax expense
EUR 1,000
2024
2023
Taxes on regular business operations
-2,936
-2,866
Taxes on group contributions
-100,837
40,948
Total
-103,774
38,082
Current taxes for the period
-104,004
41,514
Current taxes for prior periods
-20
74
Changes in deferred tax
251
-3,506
Total
-103,774
38,082
8 Non-current assets
Intangible assets
EUR 1,000
Total
Cost 1 January 2024
51,847
Additions
2,024
Disposals
-1,356
Cost 31 December 2024
52,515
Accumulated depreciation 1 January 2024
35,272
Disposals
1,098
Depreciation for the year
4,289
Accumulated depreciation 31 December 2024
40,660
Carrying amount 31 December 2024
11,855
Carrying amount 31 December 2023
16,575
Property, plant and equipment
EUR 1,000
Machinery
and
equipment
Advances
paid and con-
struction in
progress
Total
Cost 1 January 2024
12,014
386
12,398
Additions and transfers between categories
191
49
240
Disposals
0
-239
-239
Cost 31 December 2024
12,205
196
12,400
Accumulated depreciation 1 January 2024
9,132
0
9,132
Depreciation for the year
1,233
0
1,233
Accumulated depreciation 31 December 2024
10,365
0
10,365
Carrying amount 31 December 2024
1,840
196
2,035
Carrying amount 31 December 2023
2,882
386
3,266
214
Investments
EUR 1,000
Shares
in Group
companies
Partici-
pation in
associated
companies
Re-
ceivables
from Group
companies
Re-
ceivables
from
associated
companies
Other
non-
current
assets
Total
Cost 1 January 2024
20,367,651
5,656
5,731,846
16,868
8,192
26,130,214
Disposals
-681,616
-3,352
-1,795,249
-100
-2,480,317
Cost 31 December 2024
19,686,035
2,304
3,936,597
16,868
8,092
23,649,897
Accumulated write-downs
1 January 2024
6,501,973
5,656
0
16,868
7,982
6,532,479
Impairment charges
0
-3,352
0
-3,352
Accumulated write-
downs 31 December 2024
6,501,973
2,304
0
16,868
7,982
6,529,127
Carrying amount 31 December 2024
13,184,062
0
3,936,597
0
110
17,120,770
Carrying amount 31 December 2023
13,865,678
0
5,731,846
0
210
19,597,735
9 Other current receivables
EUR 1,000
2024
2023
Other current receivables from group companies
Trade receivables
31,955
14,564
Group contribution and other receivables
504,201
204,740
Accrued income and prepaid expenses
25,014
20,299
Total
561,170
239,603
Other current receivables
Trade receivables
-1,851
-2,778
Other receivables
10,083
176,673
Accrued income and prepaid expenses
22,490
23,338
Total
30,722
197,233
See Note 4.2 Liquidity and refinancing risk in the Consolidated financial statements.
10 Changes in shareholders' equity
EUR 1,000
Share
capital
Share
premium
Hedging
reserve
Retained
earnings
Total
1 January 2024
3,046,186
2,821,691
13,699
7,397,638
13,279,213
Cash dividend
-1,031,854
-1,031,854
Change in hedging reserve
-5,518
-5,518
Profit for the year
1,406,772
1,406,772
31 December 2024
3,046,186
2,821,691
8,181
7,772,556
13,648,613
1 January 2023
3,046,186
2,821,691
23,686
6,291,276
12,182,838
Cash dividend
-816,511
-816,511
Change in hedging reserve
-9,987
-9,987
Profit for the year
1,922,873
1,922,873
31 December 2023
3,046,186
2,821,691
13,699
7,397,638
13,279,213
EUR 1,000
2024
2023
Distributable funds
Retained earnings 31 December
7,772,556
7,397,638
Total
7,772,556
7,397,638
11 Interest-bearing liabilities
EUR 1,000
2024
2023
External interest-bearing loans
Bonds
2,754,738
2,735,958
Loans from financial institutions
373,540
589,142
Other long-term interest-bearing loans
718,807
718,790
Total long-term interest-bearing loans
3,847,085
4,043,890
Current portion of loans from financial institutions
16,595
716,869
Other short-term interest-bearing loans
175,493
216,985
Total short-term interest-bearing loans
192,089
933,854
Total
4,039,174
4,977,744
215
Maturity of external interest-bearing loans
EUR 1,000
2024
2025
192,089
2026
754,714
2027
14,760
2028
521,748
2029
1,059,440
2030 and later
1,496,423
Total
4,039,174
See Note 4.2 Liquidity and refinancing risk and Note 27 Interest-bearing liabilities in the
Consolidated financial statements.
External interest-bearing loans due after five years 1)
EUR 1,000
2024
2023
Bonds
765,139
1,502,223
Other long-term loans
731,284
748,410
Total
1,496,423
2,250,633
1)Excludes loans to Group and associated companies.
Other interest-bearing loans due after five years
EUR 1,000
2024
2023
Interest-bearing loans to associated companies
232,341
232,341
Total
232,341
232,341
Non-discounted cash flows of interest-bearing loans and their maturities, see Note 13 Financial
derivatives.
12 Trade and other payables
EUR 1,000
2024
2023
Trade and other payables to group companies
Trade payables
14,015
1,411
Deposits from group companies and other liabilities
35,863
29,494
Accruals and deferred income
109
590
Total
49,987
31,495
Trade and other payables to associated companies
Accruals and deferred income
10,305
14,761
Total
10,305
14,761
Trade and other payables
Trade payables
21,716
26,939
Other liabilities
3,982
4,543
Accruals and deferred income
131,124
108,946
Total
156,821
140,428
216
13 Financial derivatives
Interest rate and currency derivatives by instrument 2024
Notional amount
Fair value
Remaining lifetimes
EUR 1,000
Under 1 year
1–5 years
Over
5 years
Total
Positive
Negative
Net
Hedge accounting
Foreign exchange derivatives
256,086
266,967
0
523,053
17,432
17,383
49
Interest rate swaps
0
2,425,000
450,000
2,875,000
94,874
54,448
40,426
Cross currency swaps
0
116,274
0
116,274
3,022
581
2,440
Non-hedge accounting
Foreign exchange derivatives
12,212,661
502,664
0
12,715,325
74,670
48,936
25,734
Interest rate swaps
0
13,090
0
13,090
370
0
370
Cross currency swaps
23,656
0
0
23,656
1,855
0
1,855
Total
12,492,404
3,323,995
450,000
16,266,399
192,223
121,348
70,874
Of which long-term
109,243
61,978
47,265
Short-term
82,980
59,370
23,610
Interest rate and currency derivatives by instrument 2023
Notional amount
Fair value
Remaining lifetimes
EUR 1,000
Under 1 year
1–5 years
Over
5 years
Total
Positive
Negative
Net
Hedge accounting
Foreign exchange derivatives
248,273
248,364
0
496,637
18,185
18,042
143
Interest rate swaps
100,000
1,300,000
1,575,000
2,975,000
113,982
83,107
30,876
Cross currency swaps
46,957
73,304
0
120,261
2,739
385
2,354
Non-hedge accounting
Foreign exchange derivatives
16,216,063
497,166
0
16,713,229
330,209
259,263
70,947
Interest rate swaps
0
13,518
0
13,518
820
0
820
Cross currency swaps
0
23,656
0
23,656
1,125
0
1,125
Total
16,611,293
2,156,008
1,575,000
20,342,301
467,060
360,796
106,264
Of which long-term
131,680
99,108
32,572
Short-term
335,381
261,688
73,692
217
Maturity analysis of financial liabilities and derivatives
Interest-bearing loans and lease liabilities are the contractual undiscounted cash flows including
principal and interest payments. Trade payables equal the carrying amount as these are due
within 12 months. For gross settled derivatives, the contractual nominal amounts are presented
below and for net settled interest rate swaps the net cash outflows are presented in the table. 
2024
2023
EUR 1,000
Under
1 year
1–5 years
Over 5 years
Total
Under
1 year
1–5 years
Over 5 years
Total
Non-derivatives
Interest-bearing loans, principal and interest payments
367,204
2,783,728
2,030,126
5,181,059
1,144,177
2,249,103
2,861,359
6,254,639
Lease liabilities
4,650
7,961
0
12,612
4,565
11,106
0
15,671
Trade payables
21,716
0
0
21,716
26,939
0
0
26,939
Total non-derivatives
393,570
2,791,690
2,030,126
5,215,386
1,175,681
2,260,209
2,861,359
6,297,250
 
 
 
 
Derivatives
 
 
 
 
Foreign exchange derivatives and cross currency swaps
 
 
 
 
Cash inflow (-)
-12,535,963
-898,061
0
-13,434,024
-16,838,106
-862,173
0
-17,700,279
Cash outflow
12,506,098
890,164
0
13,396,262
16,763,336
858,836
0
17,622,172
Interest rate swap liabilities (net settled)
27,390
28,968
0
56,357
36,493
50,963
-283
87,172
Total derivatives
-2,476
21,071
0
18,595
-38,277
47,626
-283
9,065
Interest-bearing loans include loans from the State Nuclear Waste Management Fund and
Teollisuuden Voima Oyj of EUR 951 million (2023: 951). These loans are renewed every
three years and the related interest payments are calculated for ten years in the table above.
14 Derivatives and liabilities by fair value hierarchy
Fair value measurements are classified using a fair value hierarchy, i.e. Level 1, Level 2 and Level
3 that reflects the significance of the inputs used in making the measurements. For further
information see accounting principles in the consolidated financial statements Note 16 Financial
assets and liabilities by fair value hierarchy.
218
Derivatives at fair value in financial assets
Level 1
Level 2
Level 3
Total
EUR 1,000
2024
2023
2024
2023
2024
2023
2024
2023
In non-current assets
Derivative financial instruments
Interest rate and currency derivatives
Hedge accounting
102,720
122,444
102,720
122,444
Non-hedge accounting
6,523
9,235
6,523
9,235
In current assets
Derivative financial instruments
Interest rate and currency derivatives
Hedge accounting
12,607
12,462
12,607
12,462
Non-hedge accounting
70,372
322,919
70,372
322,919
Total
192,223
467,060
192,223
467,060
Derivatives and liabilities at fair value in financial liabilities
Level 1
Level 2
Level 3
Total
EUR 1,000
2024
2023
2024
2023
2024
2023
2024
2023
In non-current liabilities
Interest-bearing liabilities 1)
990,235
973,343
990,235
973,343
Derivative financial instruments
Interest rate and currency derivatives
Hedge accounting
58,787
92,961
58,787
92,961
Non-hedge accounting
3,191
6,147
3,191
6,147
In current liabilities
Derivative financial instruments
Interest rate and currency derivatives
Hedge accounting
13,625
8,573
13,625
8,573
Non-hedge accounting
45,745
253,116
45,745
253,116
Total
1,111,583
1,334,139
1,111,583
1,334,139
1)Fair valued part of bond in the fair value hedge relationship.
Net fair value amount of interest rate and currency derivatives was EUR 71 million (2023: 106),
including assets EUR 192 million (2023: 467) and liabilities, EUR 121 million (2023: 361). Fortum
Corporation has cash collaterals based on Credit Support Annex agreements with some
counterparties. At the end of December 2024, Fortum had received EUR 69 million and paid EUR
9 million from foreign exchange and interest rate derivatives under Credit Support Annex
agreements.
219
15 Contingent liabilities and other commitments
EUR 1,000
2024
2023
On own behalf
Other contingent liabilities
1,373
982
On behalf of group companies
Guarantees
445,482
924,061
On behalf of associated companies
Guarantees
1,270,512
1,076,389
On behalf of others
Guarantees
726
0
Total
1,718,093
2,001,432
Operating lease commitments
EUR 1,000
2024
2023
Due within one year
6,119
6,022
Due after one year and within five years
10,118
14,468
Total
16,237
20,490
16 Related party transactions
At the end of 2024, the Finnish State owned 51.26% of the company’s shares (2023: 51.26%).
Fortum had a bridge financing arrangement with the Finnish State from September 2022 until
March 2023. In 2023, interest expenses and fees relating to the bridge loan facility amounted to
EUR 56 million and were recognised in Finance costs - net.
See also Note 38 Related party transactions in the Consolidated financial statements.
Investments in group companies, associated companies and
other holdings
No. of shares, units
Holding %
Investments in group companies
Fortum Heat and Gas Oy
Finland
2,000,000
100.00
Fortum Clean Oy
Finland
100
100.00
Fortum Norm Oy
Finland
250
100.00
Fortum Power and Heat Oy
Finland
91,197,543
100.00
Fortum Real Estate Oy
Finland
2,000,000
100.00
Fortum TwoGether Oy
Finland
100
100.00
Fortum Holding B.V.
Netherlands
1
100.00
Fortum Energy Holding B.V.
Netherlands
61,161
100.00
Fortum Finance Ireland Designated Activity Company
Ireland
992,557
100.00
Fortum Power AB
Sweden
100
100.00
Other holdings
AW-Energy Oy
Finland
2,854,688
3.43
Clic Innovation Oy
Finland
100
3.40
East Office of Finnish Industries Oy
Finland
1
5.88
Prototype Carbon Fund
USA
N/A
East Office of Finnish Industries Oy
Finland
1
5.88
Green Industry Park Oy
Finland
19
19.00
Prototype Carbon Fund
USA
N/A
17 Events after the balance sheet date
There have been no material events after the balance sheet date.
220
Signatures for the operating and financial review,
sustainability statement and financial statements
The financial statements prepared in accordance with the applicable accounting regulations provide a true and fair view of the assets, liabilities, financial position, and profit or loss of both the
company and the entities included in its consolidated financial statements.
The operating and financial review includes a description that provides a true and fair view of the development and results of the business activities of both the company and the entities included in
its consolidated financial statements, as well as a description of the most significant risks and uncertainties and other aspects concerning the company.
The sustainability statement included in the operating and financial review has been prepared in accordance with the sustainability reporting standards referred to in Chapter 7 of the Accounting Act
and Article 8 of the Taxonomy Regulation.
Espoo, 17 February 2025
Mikael Silvennoinen
Essimari Kairisto
Ralf Christian
Luisa Delgado
Jonas Gustavsson
Marita Niemelä
Teppo Paavola
Johan Söderström
Vesa-Pekka Takala
Markus Rauramo
President and CEO
The auditor’s note
Our auditor’s report has been issued today.
Espoo, 17 February 2025
Deloitte Oy
Audit Firm
Jukka Vattulainen
Authorised Public Accountant (KHT)
221
Auditor’s report
(Translation of the Finnish original)
To the Annual General Meeting of Fortum Oyj
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Fortum Oyj (business identity code 1463611-4 ) for
the year ended 31 December, 2024. The financial statements comprise the consolidated income
statement, consolidated statement of comprehensive income, consolidated balance sheet,
consolidated statement of changes in total equity, consolidated cash flow statement and notes
to the consolidated financial statements, including material accounting policies, as well as the
parent company’s income statement, balance sheet, cash flow statement and notes to the
financial statements.
In our opinion
• the consolidated financial statements give a true and fair view of the group’s financial
position, financial performance and cash flows in accordance with IFRS Accounting Standards
as adopted by the EU
• the financial statements give a true and fair view of the parent company’s financial
performance and financial position in accordance with the laws and regulations governing the
preparation of financial statements in Finland and comply with statutory requirements.
Our opinion is consistent with the additional report submitted to the Audit Committee
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland. Our
responsibilities under good auditing practice are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the parent company and of the group companies in accordance with the
ethical requirements that are applicable in Finland and are relevant to our audit, and we have
fulfilled our other ethical responsibilities in accordance with these requirements.
In our best knowledge and understanding, the non-audit services that we have provided to the
parent company and group companies are in compliance with laws and regulations applicable in
Finland regarding these services, and we have not provided any prohibited non-audit services
referred to in Article 5(1) of regulation (EU) 537/2014. The non-audit services that we have
provided have been disclosed in note 8 to the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters were
addressed in the context of our audit of the financial statements as a whole and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
We have also addressed the risk of management override of internal controls. This includes
consideration of whether there was evidence of management bias that represented a risk of
material misstatement due to fraud.
222
Key audit matter
How our audit addressed the key audit matter
Valuation of property, plant and equipment and goodwill
Refer to Notes 1, 2, 17, 18 and 20.
• The consolidated balance sheet includes property, plant and equipment and goodwill amounting
to EUR 6,276 million (EUR 6,861 million).
• At the end of each reporting period management has to assess whether there is any indication
that assets may be impaired. If any such indication exists, the recoverable amount of the asset is
estimated. Goodwill is subject to an annual impairment test.
• Impairment testing involves significant management estimates related to the estimated future
operating cash flows including approved investment projects and the discount rates.
• The potential indicators for impairment are among other things changes in electricity and fuel
prices, changes in the projected impacts of climate-change, changes in regulatory/political risks
relating to energy taxes and price regulations, limitations to the lifetime of assets as well as
climate-related transition risks and physical risks.
• The assumptions used in the valuation of the balances in question require substantial
management judgment, and thus this is a key audit matter.
• We have evaluated the process of how management has assessed the indicators for
potential impairment. We have performed audit procedures on impairment models.
• We have obtained entity’s impairment testing documentation for goodwill and
production assets and tested and evaluated the rationale of key assumptions applied
by management on a sample basis, including commodity price forecasts, profit and
cash flow forecasts, terminal values, foreign exchange rates and the selection of
discount rates.
• We have compared, that the forecasts used in the impairment testing calculations are
based on the forecasts including investment projects approved by management.
• We challenged management’s assumptions and judgments with reference to historical
data and, where applicable, external benchmarks.
• We assessed the models used in the impairment testing and carried out our testing for
the sensitivity calculations.
• We have assessed management’s assessment of climate change impact to Fortum’s
business and how this has been taken into account in determining the cashflows used
in impairment testing.
• We assessed the adequacy of related disclosures in the financial statements.
Shares in Nuclear Waste Funds and Nuclear provisions
Refer to Notes 2 and 29.
• Fortum’s balance sheet includes Nuclear related provisions amounting to EUR 1,117 million (EUR
1,058 million) and Fortum’s share of the Nuclear Waste Management Fund amounting to EUR
1,117 million (EUR 1,058 million).
• Fortum's nuclear related provisions and the related part of the Nuclear Waste Management
Fund are both presented separately in the balance sheet as disclosed in note 29.
• Fortum’s share in the State Nuclear Waste Management Fund is accounted for according to
IFRIC 5, Rights to interests arising from decommissioning, restoration and environmental
rehabilitation funds which states that the fund assets are measured at the lower of fair value or
the value of the related liabilities since Fortum does not have control or joint control over the
State Nuclear Waste Management Fund. The Nuclear Waste Management Fund is managed by
governmental authorities. The related provisions are the provision for decommissioning and the
provision for disposal of spent fuel.
• We have assessed Fortum’s accounting manual and principles for Nuclear
Decommissioning Accounting, whether they are in line with IFRS accounting principles.
• We have assessed the assumptions and judgments made and adopted by
management in the accounting for the nuclear waste provisions, and that the share in
nuclear waste management fund is based on the confirmation submitted by
authorities.
• We assessed the adequacy of related disclosures in the financial statements.
223
• The provision for future obligations for nuclear waste management including decommissioning
of Fortum's nuclear power plants and related spent fuel is based on long-term cash flow
forecasts of estimated future costs. The main assumptions are technical plans, timing, cost
estimates and discount rate. The technical plans, timing and cost estimates are approved by
governmental authorities.
• The accounting treatment for nuclear decommissioning is complex and requires application of
special accounting practice and management judgment when forming estimates for the basis of
accounting such as technical plans, timing, cost estimates and discount rate and thus this is a
key audit matter.
Fair value measurements of derivatives and hedge accounting
Refer to Notes 4, 7, 15 and 16.
• Fortum’s business is exposed to fluctuations in prices and availability of commodities used in
the production, transmission and sales of energy products. The main exposure is toward
electricity prices and volumes, prices of emissions, and price and availability of fuels. Fortum
hedges its exposure to commodity market risks in order to improve the predictability of the
future result by reducing volatility in earnings while ensuring cash flow risk is at an acceptable
level.
• In Fortum’s consolidated financial statements total derivative assets amounts to EUR 645
million (EUR 605 million) and total derivative liabilities amounts to EUR 554 million (EUR 1,273
million). The net effect of changes in fair values of derivatives hedging future cash flow amounts
to EUR -61 million (EUR 111 million) in items affecting comparability in the consolidated income
statement and the cash flow hedges in other equity components amount to EUR 127 million
(EUR -337 million).
• Fair value measurement of derivatives and hedge accounting is a key audit matter because the
fair value and changes in fair values of derivative financial instruments may have material
impacts on Fortum´s financial statements.
• Our audit procedures included the assessment of Fortum's internal controls related to
derivative transactions, hedging activities and the determination of fair values.
• We have assessed the appropriateness of the valuation models used by Fortum,
including the assumptions used in the models. We have validated model input data
with observable external information.
• We have conducted audit procedures regarding the existence and completeness of
open derivative contracts.
• We have assessed the appropriateness of accounting application according to the
requirements of IFRS
• We have assessed the appropriate presentation of derivatives in the consolidated
financial statements.
224
Responsibilities of the Board of Directors and the President
and CEO for the Financial Statements
The Board of Directors and the President and CEO are responsible for the preparation of
consolidated financial statements that give a true and fair view in accordance with IFRS
Accounting Standards as adopted by the EU, and of financial statements that give a true and fair
view in accordance with the laws and regulations governing the preparation of financial
statements in Finland and comply with statutory requirements. The Board of Directors and the
President and CEO are also responsible for such internal control as they determine is necessary
to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the Board of Directors and the President and CEO are
responsible for assessing the parent company’s and the group’s ability to continue as a going
concern, disclosing, as applicable, matters relating to going concern and using the going
concern basis of accounting. The financial statements are prepared using the going concern
basis of accounting unless there is an intention to liquidate the parent company or the group or
cease operations, or there is no realistic alternative but to do so.
Auditor’s responsibilities for the Audit of the Financial
Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with good auditing practice will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with good auditing practice, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the parent company’s or the group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of the Board of Directors’ and the President and CEO use of
the going concern basis of accounting and based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast significant doubt on
the parent company’s or the group’s ability to continue as a going concern. If we conclude that
a material uncertainty exists, we are required to draw attention in our auditor’s report to the
related disclosures in the financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the parent company or the
group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions
and events so that the financial statements give a true and fair view.
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business units within the group as a basis for forming an
opinion on the group financial statements. We are responsible for the direction, supervision
and review of the audit work performed for purposes of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
225
Other Reporting Requirements
Information on our Audit Engagement
We were first appointed as auditors by the Annual General Meeting on 16.3.2026, and our
appointment represents a total period of uninterrupted engagement of 19 years.
Other Information
The Board of Directors and the President and CEO are responsible for the other information. The
other information comprises the Operating and Financial Review and the information included in
the Financials but does not include the financial statements or our auditor’s report thereon. We
have obtained the the Operating and Financial Review prior to the date of this auditor’s report
and the Financials is expected to be made available to us after that date.
Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other
information identified above and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated. With respect to the Operating and Financial
Review, our responsibility also includes considering whether the Operating and Financial Review
has been prepared in compliance with the applicable provisions, excluding the sustainability
statement information on which there are provisions in Chapter 7 of the Accounting Act and in
the sustainability reporting standards.
In our opinion, the information in the Operating and Financial Review is consistent with the
information in the financial statements and the Operating and Financial Review has been
prepared in compliance with the applicable provisions. Our opinion does not cover the
sustainability statement information on which there are provisions in Chapter 7 of the
Accounting Act and in the sustainability reporting standards.
If, based on the work we have performed on the other information that we obtained prior to the
date of this auditor’s report, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Other Opinions
We support that the financial statements should be adopted. The proposal by the Board of
Directors regarding the use of the profit shown on the balance sheet is in compliance with the
Limited Liability Companies Act. We support that the Board of Directors of the parent company
and the President and CEO should be discharged from liability for the financial period audited by
us.
Espoo, 17 February 2025
Deloitte Oy
Audit Firm
Jukka Vattulainen
Authorised Public Accountant (KHT)
226
Auditor’s assurance report of ESEF financial
statements
(Translation of the Finnish Original)
Independent auditor’s report on the ESEF
consolidated financial statements of Fortum Oyj
To the Board of Directors of Fortum Oyj
We have performed a reasonable assurance engagement on the consolidated financial
statements (635400IUIZZIUJSAMF76-2024-12-31-en.zip) of Fortum Oyj (1463611-4) that have
been prepared in accordance with the Commission's regulatory technical standard for the
financial year ended 31.12.2024.
Responsibilities of the Board of Directors and the Managing
Director
The Board of Directors and the Managing Director are responsible for the preparation of the
company’s report of the Board of Directors and financial statements (the ESEF financial
statements) in such a way that they comply with the requirements of the Commission's
regulatory technical standard. This responsibility includes:
• preparing the ESEF financial statements in XHTML format in accordance with Article 3 of the
Commission's regulatory technical standard
• tagging the primary financial statements, notes and company's identification data in the
consolidated financial statements that are included in the ESEF financial statements with
iXBRL tags in accordance with Article 4 of the Commission's regulatory technical standard and
• ensuring the consistency between ESEF financial statements and the audited financial
statements.
The Board of Directors and the Managing Director are also responsible for such internal control
as they determine is necessary to enable the preparation of ESEF financial statements in
accordance with the requirements of the Commission's regulatory technical standard.
Auditor’s Independence and Quality Control
We are independent of the company in accordance with the ethical requirements that are
applicable in Finland and are relevant to the engagement we have performed, and we have
fulfilled our other ethical responsibilities in accordance with these requirements.
The auditor applies International Standard on Quality Management (ISQM) 1, which requires the
firm to design, implement, and operate a system of quality management including policies or
procedures regarding compliance with ethical requirements, professional standards, and
applicable legal and regulatory requirements.
Auditor’s Responsibilities
Our responsibility is to, in accordance with Chapter 7, Section 8 of the Securities Markets Act,
provide assurance on the financial statements that have been prepared in accordance with the
Commission's regulatory technical standard. We express an opinion on whether the
consolidated financial statements that are included in the ESEF financial statements have been
tagged, in all material respects, in accordance with the requirements of Article 4 of the
Commission's regulatory technical standard.
Our responsibility is to indicate in our opinion to what extent the assurance has been provided.
We conducted a reasonable assurance engagement in accordance with International Standard
on Assurance Engagements (ISAE) 3000.
The engagement includes procedures to obtain evidence on:
• whether the primary financial statements in the consolidated financial statements that are
included in the ESEF financial statements have been tagged, in all material respects, with
iXBRL tags in accordance with the requirements of Article 4 of the Commission's regulatory
technical standard and
• whether the notes and company's identification data in the consolidated financial statements
that are included in the ESEF financial statements have been tagged, in all material respects,
with iXBRL tags in accordance with the requirements of Article 4 of the Commission's
regulatory technical standard and
• whether there is consistency between the ESEF financial statements and the audited financial
statements.
227
The nature timing and extent of the selected procedures depend on the auditor’s judgment. This
includes an assessment of the risk of a material deviation due to fraud or error from the
requirements of the Commission's regulatory technical standard.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Opinion
Our opinion pursuant to Chapter 7, Section 8 of the Securities Markets Act is that the primary
financial statements, notes and company's identification data in the consolidated financial
statements that are included in the ESEF financial statements of Fortum Oyj
(635400IUIZZIUJSAMF76-2024-12-31-en.zip) for the financial year ended 31.12.2024 have been
tagged, in all material respects, in accordance with the requirements of the Commission's
regulatory technical standard.
Our audit opinion on the audit of the consolidated financial statements of Fortum Oyj for the
financial year ended 31.12.2024 has been expressed in our auditor’s report dated 17.2.2025. With
this report we do not express an opinion on the audit of the consolidated financial statements
nor express another assurance conclusion.
Espoo, 17 February 2025
Deloitte Oy
Audit Firm
Jukka Vattulainen
APA
228
Auditor’s limited assurance report of
the sustainability statement
Assurance report on the sustainability statement
(Translation of the Finnish original)
To the Annual General Meeting of Fortum Oyj
We have performed a limited assurance engagement on the group sustainability statement of
Fortum Oyj (1463611-4) that is referred to in Chapter 7 of the Accounting Act and that is included
in the Operating and Financial Review for the financial year 1.1.–31.12.2024.
Opinion
Based on the procedures we have performed and the evidence we have obtained, nothing has
come to our attention that causes us to believe that the group sustainability statement does not
comply, in all material respects, with
• the requirements laid down in Chapter 7 of the Accounting Act and the sustainability reporting
standards (ESRS);
• the requirements laid down in Article 8 of the Regulation (EU) 2020/852 of the European
Parliament and of the Council on the establishment of a framework to facilitate sustainable
investment, and amending Regulation (EU) 2019/2088 (EU Taxonomy).
Point 1 above also contains the process in which Fortum Oyj has identified the information for
reporting in accordance with the sustainability reporting standards (double materiality
assessment) and the tagging of information as referred to in Chapter 7, Section 22 of the
Accounting Act.
Our opinion does not cover the tagging of the group sustainability statement with digital XBRL
sustainability tags in accordance with Chapter 7, Section 22, Subsection 1(2), of the Accounting
Act, because sustainability reporting companies have not had the possibility to comply with that
provision in the absence of the ESEF regulation or other European Union legislation.
Basis for Opinion
We performed the assurance of the group sustainability statement as a limited assurance
engagement in compliance with good assurance practice in Finland and with the International
Standard on Assurance Engagements (ISAE) 3000 (Revised) Assurance Engagements Other
than Audits or Reviews of Historical Financial Information.
Our responsibilities under this standard are further described in the Responsibilities of the
Authorised Sustainability Auditor section of our report.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Other Matter
We draw attention to the fact that the group sustainability statement of Fortum Oyj that is
referred to in Chapter 7 of the Accounting Act has been prepared and assurance has been
provided for it for the first time for the financial year 1.1.–31.12.2024.
Our opinion does not cover the comparative information that has been presented in the group
sustainability statement. Our opinion is not modified in respect of this matter.
Authorised Group Sustainability Auditor's Independence and
Quality Management
We are independent of the parent company and of the group companies in accordance with the
ethical requirements that are applicable in Finland and are relevant to our engagement, and we
have fulfilled our other ethical responsibilities in accordance with these requirements.
229
The authorised group sustainability auditor applies International Standard on Quality
Management ISQM 1, which requires the authorised sustainability audit firm to design,
implement and operate a system of quality management including policies or procedures
regarding compliance with ethical requirements, professional standards and applicable legal
and regulatory requirements.
Responsibilities of the Board of Directors and the Managing
Director
The Board of Directors and the Managing Director of Fortum Oyj are responsible for:
• the group sustainability statement and for its preparation and presentation in accordance with
the provisions of Chapter 7 of the Accounting Act, including the process that has been defined
in the sustainability reporting standards and in which the information for reporting in
accordance with the sustainability reporting standards has been identified as well as the
tagging of information as referred to in Chapter 7, Section 22 of the Accounting Act and
• the compliance of the group sustainability statement with the requirements laid down in
Article 8 of the Regulation (EU) 2020/852 of the European Parliament and of the Council on the
establishment of a framework to facilitate sustainable investment, and amending Regulation
(EU) 2019/2088;
• such internal control as the Board of Directors and the Managing Director determine is
necessary to enable the preparation of a group sustainability statement that is free from
material misstatement, whether due to fraud or error.
Inherent Limitations in the Preparation of a Sustainability
Statement
In preparing the sustainability statement, the company is required to conduct a materiality
assessment to identify relevant matters to be reported. This process involves significant
management judgement and choices. Sue to the nature and characteristics of sustainability
reporting, this type of information involves estimates and assumptions, as well as measurement
and evaluation uncertainties.
In reporting forward-looking information, management is required to prepare the forward-
looking information on the basis of disclosed assumptions about events that may occur in the
future and possible future actions by the Group. The actual outcome is likely to be different since
anticipated events frequently do not occur as expected.
Responsibilities of the Authorised Group Sustainability
Auditor
Our responsibility is to perform an assurance engagement to obtain limited assurance about
whether the group sustainability statement is free from material misstatement, whether due to
fraud or error, and to issue a limited assurance report that includes our opinion. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the decisions of users taken on the basis of the group
sustainability statement.
Compliance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised)
requires that we exercise professional judgment and maintain professional skepticism
throughout the engagement. We also:
• Identify and assess the risks of material misstatement of the group sustainability statement,
whether due to fraud or error, and obtain an understanding of internal control relevant to the
engagement in order to design assurance procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
parent company’s or the group’s internal control.
• Design and perform assurance procedures responsive to those risks to obtain evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
Description of the Procedures That Have Been Performed
The procedures performed in a limited assurance engagement vary in nature and timing from,
and are less in extent than for, a reasonable assurance engagement. The nature, timing and
extent of assurance procedures selected depend on professional judgment, including the
assessment of risks of material misstatement, whether due to fraud or error. Consequently, the
level of assurance obtained in a limited assurance engagement is substantially lower than the
assurance that would have been obtained had a reasonable assurance engagement been
performed.
230
Our procedures included for ex. the following:
• Performed inquiries of the company’s management and personnel responsible for collecting
and reporting the information contained in the sustainability statement at the group level
and for subsidiaries, as well as at the different levels and business areas of the organization.
• Obtained an understanding of the company’s sustainability reporting process, internal
controls, and information systems related to the sustainability reporting process through
inquiries.
• Reviewed the supporting documentation and records prepared by the company, where
applicable, and assessed whether they support the information included in the sustainability
statement.
• With respect to the double materiality assessment process, we evaluated the
implementation of the process conducted by the company in relation to the requirements of
the ESRS standards and assessed whether the disclosed information on the double
materiality assessment is in accordance with the ESRS standards.
• Evaluated whether the sustainability statement meets the requirements of the ESRS
standards, in all material aspects, regarding material sustainability matters to a significant
extent.
• With respect to the EU taxonomy information, we obtained an understanding of the process
by which the company has identified taxonomy-eligible and taxonomy-aligned economic
activities and assessed the compliance of the related disclosed information with the
regulations.
Espoo, 17 February 2025
Deloitte Oy
Authorised Sustainability Audit Firm
Jukka Vattulainen
Authorised Sustainability Auditor