Our opportunities and challenges in sustainability
Our strategy is anchored in megatrends that are shaping the energy sector. We are responding to the global challenges and arising business opportunities with the aim of being the forerunner in clean energy.
Megatrends working for us
Climate change and resource efficiency
Climate change is changing our industry in a profound way. The energy system needs to transform to a system with substantially lower emissions, higher resource efficiency and a higher share of power generation based on renewables.
We believe that our know-how in carbon-free and energy-efficient energy production, research and development of the future energy system and its technologies provides us with a competitive advantage. On the other hand we are exposed to physical risks of climate change, including changes in weather patterns that could alter energy demand and supply.
In addition, recycling and the circular economy create opportunities for companies like us.
Over the last decades an ever-increasing share of the world’s population has moved to urban areas and the trend is continuing. The increasing urbanisation creates a demand for efficient solutions for heating, cooling and electricity production, as provided by us. New solutions are also needed for transportation and waste management.
New technologies enable customers to participate in the energy markets. Also the market for prosumers (consumers who produce some of their own energy) is rapidly growing. This challenges how the energy markets traditionally have worked and offers great potential for innovation and growth.
We offer solutions such as home automation, electrical vehicles with smart charging solutions, local power production and storage as well as demand-response solutions for active customers.
Digitalisation and new technologies
Digitalisation will enable increased productivity for existing businesses and foster the development of new customer offerings. The emergence of weather dependent renewable energy production demands more flexibility in the energy system.
Digitalisation provides new possibilities for storage and demand-response solutions for this need. We see this as an opportunity to develop services for our customers which enable them to actively take part in balancing the future power system.
Responding to sustainability challenges
Changes to laws, regulations and the business environment can pose a risk to Fortum if not identified and managed effectively. The same applies to changing views of our main stakeholders.
Operating power and heat generation plants as well as use, storage and transportation of fuels and materials can have adverse effects on the environment and expose personnel to safety risks. We assess environmental and safety risks according to the ISO 14001 and OHSAS 18001 standards and are ready to operate in exceptional and emergency situations.
Environmental, health and safety (EHS) risks as well as social risks related to Fortum’s supply chain are evaluated through supplier qualification, internal and external audits and risk assessments.