Corporate responsibility

1.1.11 Corporate responsibility

Fingrid’s compliance with corporate responsibility is steered by the set strategy targets. Corporate responsibility is a key element in the implementation of Fingrid’s strategy and in its business expertise. The key targets have been set by identifying matters 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. Fulfilment of the targets serves as the basis for executive management’s and personnel’s remuneration.

Corporate responsibility is managed as an integrated part of Fingrid’s management system. Fingrid’s Board of Directors approves the company’s Code of Conduct and monitors the company’s compliance in operating responsibly. The Board is responsible for the CSR management systems and their integration into business operations. The CEO and the heads of functions are each responsible for corporate responsibility issues within their area of responsibility. Social issues and environmental impacts are taken into account in all decision-making and when assessing operations alongside profitability issues.

Managers and the entire work community ensure that behaviour is in line with the Code of Conduct. A whistleblower system managed by an independent third party for reporting cases of misconduct etc. is available to the personnel. Fingrid Oyj committed in 2016 to the United Nations Global Compact initiative. Fingrid’s Code of Conduct complies with the Global Compact initiative’s principles on human rights, labour, environment and anti-corruption. Fingrid also requires all contractors to comply with the Code of Conduct and monitors their compliance based on risk assessments.

Fingrid’s work sites are regularly audited to verify compliance with contractor obligations, occupational safety and environmental management. The audits carried out during 2016 proved that the work site operations are generally at a high level and that use of the electronic reporting system is extensive.

A human rights impact assessment was carried out in compliance with the due diligence process recommended in the UN’s Guiding Principles on Business and Human Rights. As regards tax footprint reporting, Fingrid only operates in Finland and has not resorted to any special arrangements to minimise taxes. The company’s tax footprint is presented in the annual report’s ‘Corporate finances, financing and risk management’ section. Dividends are mainly paid to the State of Finland and to Finnish pension insurance and insurance companies.

To ensure transparency and comparability, Fingrid reports on its corporate responsibility in accordance with the international Global Reporting Initiative (GRI) framework. The GRI G4 reporting framework is applied using the Core ‘in accordance’ option.