Corporate responsibility

Responsibility is one of Fingrid’s corporate values, and responsible business conduct is a strategic choice for the company. In addition to successfully fulfilling its societally important core mission, the following aspects are important to Fingrid: safety and security, procurement practices, stakeholder confidence, financial result, Code of Conduct and taking care of the work community. Fingrid’s compliance with corporate responsibility is steered by the set strategy targets. The key 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 serves as the basis for executive management’s and personnel’s remuneration.

At Fingrid, corporate responsibility and compliance management are integrated with the management system and risk management practices. Fingrid’s Board of Directors approves the company’s Code of Conduct and monitors the company’s compliance in operating responsibly. Furthermore, the Board is in charge of arranging corporate responsibility management and its integration into business operations. The CEO and the heads of functions are each responsible for corporate responsibility issues within their areas of responsibility. Social issues and environmental impacts are taken into account in all decision-making and when assessing operations, alongside profitability issues.

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.

In accordance with its Code of Conduct, Fingrid is a responsible tax payer and combats the grey economy, and does not engage in money laundering or corruption, such as blackmail and bribery. No cases related to corruption and bribery occurred during the year under review. Fingrid reports on its tax footprint and does not carry out special arrangements to minimise taxes.

Managers and the entire work community ensure that behaviour is in line with the Code of Conduct. New employees must complete online induction training on the Code of Conduct. The online induction training was updated during the year under review, and it helped to reinforce the commitment of existing and new employees alike. The updated online training takes into account the new General Data Protection Regulation, and data security was one of the topics in internal audits, in addition to compliance management issues. A confidential whistle-blower system managed by an independent third party is available to employees who suspect a breach of the Code of Conduct. Preparations were made during the year under review to expand its availability to external stakeholders. Fingrid again received an excellent AAA rating in the survey where employees assessed the responsibility of the company’s ways of operating. In the customer survey, the trust KPI measuring the implementation of the customer strategy and customers’ trust was 4.1 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. During the year under review, Fingrid carried out 10 audits on its work sites to verify compliance with contractor obligations, occupational safety and environmental management. The audits revealed that operations and induction at the work sites are generally on a good level and continuously improving. An external service was introduced for monitoring the payroll and employment issues of foreign workforce. In international goods sourcing, compliance with the Supplier Code of Conduct was ensured through third-party supplier audits at 15 production plants in seven countries. In addition, several follow-up audits were carried out. 

Reporting on corporate responsibility is one of the topics in Fingrid’s annual report, in compliance with the principles of integrated reporting. 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 2018 was verified by a third party. The Report of the Board of Directors includes also non-financial information.