1.13 Corporate responsibility
Fingrid promotes through its operations particularly the UN’s global Sustainable Development Goals (SDGs) related to climate actions, energy and infrastructure. In addition to successfully fulfilling the company’s societally important core mission, the following aspects are important for business and corporate responsibility: safety and security, procurement practices, stakeholder trust, financial result, Code of Conduct and taking care of the work community. Fingrid’s compliance with corporate responsibility is steered by the set strategic targets. The targets have been set by identifying topics that are of material importance to Fingrid. The need for updates to the materiality analysis is assessed annually as part of the strategy process, based on an operating environment and stakeholder analysis and on the strategy update. Achieving the targets is the starting point for executive management’s and personnel’s remuneration.
Corporate responsibility and compliance management is integrated with Fingrid’s management system and risk management practices. The starting point is Fingrid’s strategy where responsibility is a corporate-level strategic choice and one of the company’s values. According to Fingrid’s vision, the company and its employees are known for their responsible business practices. Fingrid’s Board of Directors approves the company’s Code of Conduct, monitors the sustainability of operations and ensures that corporate responsibility management is integrated into business operations. Corporate responsibility is reported on to the Board of Directors over the course of the year as required and separately in an aggregate form once a year. Corporate responsibility aspects are also included in the Board of Directors’ decision-making process when making decisions about, for example, investments. The President & CEO and the heads of functions are each responsible for compliance management and corporate responsibility issues within their areas of responsibility. The executive management group regularly reviews corporate responsibility issues, and alongside profitability, social issues and environmental impacts are taken into account in a balanced manner in decision-making.
Fingrid has declared its human rights commitment as part of the company’s Code of Conduct. To ensure its understanding of human rights impacts, Fingrid has carried out an assessment in compliance with the due diligence process recommended in the UN’s Guiding Principles on Business and Human Rights and updates its action plan annually.
Fingrid is a responsible tax payer and for its part combats the grey economy, and does not engage in money laundering or corruption, such as blackmail and bribery. Fingrid reports on its tax footprint and does not carry out special arrangements to minimise taxes. In 2019, no breaches of anti-competition laws, complaints related to the privacy of private individuals, corruption incidents, human rights violations or discrimination incidents occurred in Fingrid’s operations.
Managerial work and the entire work community ensure that behaviour is in line with the company’s Code of Conduct. New employees must complete online induction training on the Code of Conduct. During the year under review, Fingrid also drew up ethical principles for the use of artificial intelligence and participated in a corporate AI ethics challenge. Online training on corporate security and safety was organised for the entire personnel. A confidential and independent whistleblowing channel was in place for reporting suspected breaches against the Code of Conduct. Its accessibility for external stakeholders was further improved by increasing the reporting channel’s visibility on the website and by promoting awareness of security and safety and the importance of reporting suspected misconduct among service providers. Fingrid again received an excellent score (90%) in a survey carried out in 2019, where employees assessed the sustainability of the company’s ways of operating. According to a customer survey, the trust KPI measuring the implementation of the customer strategy and customers’ trust was 4.0 on a scale of 1–5.
Fingrid has joined the United Nations’ Global Compact initiative, and its Code of Conduct is in line with the initiative’s principles on human rights, labour, the environment and anti-corruption. In procurements, Fingrid requires its contractual partners to commit to Fingrid’s Supplier Code of Conduct and monitors compliance using a risk-based approach. Compliance with the Supplier Code of Conduct is a condition for being included in supplier registers used in recurring substation and power line procurements. In addition, contractual partners are subject to separate contract terms related to the use of subcontractors and workforce, and to occupational safety and environmental matters. Nine Fingrid work sites were audited in 2019 to verify compliance with contractor obligations, occupational safety and environmental management. In addition, key foreign subcontractors from the Baltics and Poland, as well as the cleaning service company used by the company, were audited by a third party, focussing especially on employment matters and wages. In international goods sourcing, third-party supplier audits were carried out at 20 production plants in a total of 11 countries, and three follow-up audits were carried out in order to rectify any observed non-compliances. Procurements from one supplier were interrupted and measures were required for the co-operation to continue.
Corporate responsibility reporting as a whole is integrated into Fingrid’s annual report. To ensure transparency and comparability, Fingrid reports on its corporate responsibility in accordance with the international Global Reporting Initiative (GRI) framework. The corporate responsibility reporting for 2019 was verified by a third party. The Report of the Board of Directors also includes non-financial information.
In addition, Fingrid disclosed in 2019 the business risks and opportunities related to climate change in accordance with the Task Force on Climate-related Financial Disclosures framework in an aggregate form on the TCFD data page.