Public Affairs Operating Mode and Governance is our strategic approach to aligning policy advocacy with overall company goals. It aims to enhance our licence to operate, reputation, credibility and transparency. The operating mode focuses on influencing public policy, building relationships with stakeholders, and contributing responsibly to economic, environmental, and social development. This approach applies to all Fortum’s public affairs activities both at the EU and national level.
Public Affairs mission and objectives
Our public affairs mission is to become an industry benchmark in proactive, constructive, forward-looking, ethical and transparent lobbying, based on well-coordinated, constructive, solution-driven and fact-based messages delivered to the right people and the right processes at the right time and with a positive outcome. In accordance with our cultural priorities, we reach out with courage as one Fortum.
As a trusted energy sector expert and a major European utility, we actively engage in policy issues concerning the business and offer expertise to officials and decision-makers to help them make informed decisions supporting Fortum’s interests. The objective is to ensure a favourable regulatory environment for all businesses and facilitate the successful development and execution of the strategy. We aim to become a thought leader in selected policy issues relevant to our business strategy and growth.
Principles and priorities of Public Affairs
Fortum’s company strategy and established business priorities set the content and framework for all public affairs advocacy work. The company Code of Conduct is the basis for all operations, including public affairs, and defines how business is conducted at Fortum. Transparency is a key principle in all operations. Furthermore, our Business Ethics Guidelines for Lobbying for public affairs complement our Code of Conduct and apply to all Fortum staff. We advocate on public affairs issues in line with these guidelines.
We are committed to periodically re-assessing our public affairs operating mode, footprint, and impact on society. This includes reviews of the implementation of our political lobbying and political engagement policies to identify risks and areas of improvement. We also expect our key stakeholders and collaboration partners to adhere to similar policy engagement principles whenever appropriate.
Our public affairs priorities are selected based on their relevance to Fortum’s strategy delivery and business goals and their financial impact. Lobbying objectives and advocacy priorities are defined as part of the annual planning process.
Stakeholder management
Engagement and cooperation with policymakers and other stakeholders are integral to Fortum’s business practices and policy advocacy. Key stakeholders include governments, authorities, political decision-makers, investors, industry organisations, customers, non-governmental organisations, media, and research organisations.
We disclose information on our collaboration and partnerships with stakeholders in our sustainability reporting and on our webpages.
Way of working in Public Affairs
Fortum engages in policy discussions directly with governments and policy makers, offering relevant information, views, and policy recommendations on new proposals. We also engage governments and policy makers indirectly, for example through our participation in relevant industry associations. We also join coalitions and networks where there is likely to be a common advocacy objective.
In addition to the Corporate Public Affairs (CPA) and Corporate Relations Business (CRB) functions within the Sustainability and Corporate Relations (SCR) function, also various businesses and other corporate functions conduct lobbying at Fortum, with guidance from SCR. Depending on the topic and goals, alternative communication channels, such as editorial and social media, may be utilised. Fortum also contributes to communication campaigns and collaborates with the Communications function to build trust among wider audiences.
Public Affairs Governance
Our advocacy is a critical part of our strategy. We have the following internal governance structures and processes in place.
The President and CEO, supported by the Fortum Leadership Team (FLT), approves the Public Affairs Operating Mode and Governance, the annual public affairs plan, and key performance indicators. The Executive Vice President (EVP), Sustainability and Corporate Relations, as a member in FLT, is responsible for executing oversight of Fortum’s public affairs target setting, management, activities, and performance.
SCR has overall responsibility for setting principles for Fortum’s advocacy practices and for the advocacy itself. SCR ensures that the public affairs agenda and priorities are decided jointly between the businesses, CPA, CRBs and other functions.
Fortum coordinates its public affairs activities through internal networks and processes. Key positions on Group-level issues or new horizontal policy initiatives are approved by the SCR Leadership Team and given for information and sign-off to the FLT.
Corporate Public Affairs and Corporate Relations Business teams
Corporate Public Affairs (CPA) coordinates the setting of the public affairs agenda and strategic priorities. CPA drives a unified 'One Fortum' approach in public affairs across businesses and countries. CPA is responsible for horizontal policy issues, notably climate policy advocacy and environmental, social and governance (ESG) issues, and ethical and transparent lobbying practices, as well as leads and coordinates Fortum’s EU advocacy.
Corporate Relations Business (CRB) teams promote the company’s strategic agenda, reputation, and licence to operate in the Nordics and Europe. Each CRB acts as a business partner for public affairs and communications work for its respective business units and country, and their targets in these fields have been directly derived from business targets. The CRB teams focus on national government-level policies and legislation.
Compliance and transparency
Fortum uses a dedicated Transparency Register tool for internal reporting on lobbying activities in Finland, Sweden, Norway, and Brussels. Every individual conducting lobbying is responsible for reporting their activities to the register to comply with Transparency Register legislation. Fortum is committed to transparent disclosure of public affairs information, ensuring that stakeholders and the public can understand its political engagement, societal impacts, alignment with strategy, and corporate responsibilities.
We publish lobbying positions and comments on issues that are material for us and related political engagement efforts on our Public Affairs website. We also publish a Climate Lobbying Review in which we assess the climate positions of a number of industry associations and our own positions.
Measurement of performance
Public affairs targets, performance indicators, and monitoring are defined for three-year cycles. Performance assessment is largely based on internal or external evaluation and judgement, with non-financial and qualitative targets and KPIs.
