Independent assurance statement

To the Management and Stakeholders of Fingrid

Scope and Objectives

The Management of Fingrid Oyj commissioned us to perform a limited assurance engagement over the responsibility information presented in Fingrid’s Annual Report 2018 (“the Report”) and specified in the Corporate responsibility GRI disclosures for the reporting period 1st January to 31st December 2018. The assurance engagement was conducted in accordance with the AA1000 Assurance Standard (2008) with 2018 addendum, and as a type 2 engagement.

We have duly performed an independent external assurance, the objective of which was to evaluate:

  • Fingrid’s adherence to the AA1000 Accountability Principles (2018) of inclusivity, materiality, responsiveness and impact;
  • the reliability of performance information presented in the Report according to the Principles for defining report quality defined the GRI Standard 101 Foundation (2016); and
  • the compliance with the GRI Standards in accordance criteria at the Core option.

Responsibilities

Fingrid’s Management is responsible for the preparation of the Report and the performance data and statements presented therein, which the Executive Management Group of Fingrid has approved. Our responsibility as assurance providers is to express a conclusion based on our work performed. The criteria used for our assessment include the GRI Standards (2016) and Fingrid’s own internal reporting guidelines.


Assurance Provider’s Independence and Competence

We have conducted our assessment as independent and impartial from the reporting organisation. We were not committed to any assignments for Fingrid that would conflict with our independence, nor were we involved in the preparation of the Report. Our team consists of competent and experienced corporate responsibility reporting experts, who have the necessary skills to perform an assurance process.

Basis of Our Opinion

Assurance providers are obliged to plan and perform the assurance process to ensure that they collect adequate evidence for the necessary conclusions to be drawn.The procedures selected depend on the assurance provider’s judgement, including their assessment of the risk of material misstatement adhering to the reporting criteria.

Our opinion is based, among other things, on the following procedures performed:

  • Interviews with senior management representatives to gain an understanding of the major impacts, risks and opportunities related to Fingrid’s corporate responsibility agenda;
  • Assessment of the procedures Fingrid has in place to ensure the inclusivity of stakeholder engagement processes, the identification of material stakeholder expectations and the responsiveness to stakeholder concerns;
  •  Interviews with Fingrid’s specialists responsible for corporate responsibility performance data collection and calculations;
  • Review of systems and procedures to generate, collect and report corporate responsibility performance data for the Report;
  • Reviewing data at source and following this through to the responsibility information presented in the Report;
  • Reviewing whether the evidence, measurements, and scope of the performance data is prepared in accordance with the Criteria; and
  • Reviewing the Report and narrative accompanying the performance indicators in the Report with regard to the Criteria.


Inherent limitations

Our assurance relies on the premise that the data and information provided by Fingrid to us as part of our review procedures have been provided in good faith. Because of the selective nature (sampling) and other inherent limitations of both procedures and systems of internal control, there remains the unavoidable risk that errors or irregularities may not have been detected. For instance, greenhouse gas (GHG) emissions calculations are subject to inherent limitations, given the nature and the methods used for determining such data. Finally, the selection of different but acceptable measurement techniques may result in materially different measurements.

Conclusions

Adherence to AA1000 Accountability Principles

  • Inclusivity: Fingrid has a stakeholder engagement process in place in order to understand stakeholder expectations, and it has committed to active stakeholder dialogue.
  • Materiality: Fingrid has defined material corporate responsibility reporting topics as a part of the strategy process.
  • Responsiveness: Fingrid has policies and procedures in place to respond to stakeholder’s expectations.
  • Impact: Fingrid has identified impacts related to the material corporate responsibility topics and has committed to manage and disclose comprehensive and balanced information on these impacts.

Corporate responsibility performance data

We have reviewed the basis of the corporate responsibility information provided in the Report. Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Report is not fairly stated and has not been prepared, in all material respects, in accordance with the reporting criteria.


GRI Standards in accordance criteria

The Report complies with the GRI Standards: Core option.


Observations and Recommendations


Based on our limited level assurance engagement, we present the following observations and recommendations, which do not affect the conclusions presented above.

  • Fingrid has integrated corporate responsibility in its business. Corporate responsibility targets are a part of Fingrid’s strategic targets and indicators. In 2018 Fingrid has progressed mainly in the line with the targets set. We recommend that Fingrid develops even more challenging and longer-term corporate responsibility targets
  • Fingrid has established a corporate responsibility governance and management approach and discloses comprehensive information on material topics. Fingrid has also defined responsibility requirements for its suppliers. We recommend that Fingrid continues efforts to evaluate responsibility in the supply chain and develop procedures to promote responsible business practices among suppliers
  • Fingrid has an important role in society and as an enabler of the energy system transition to mitigate climate change in the line with national and international goals. We recommend that Fingrid develops its own target-setting related to climate change mitigation in accordance with the company’s role.

 

Helsinki, Finland, 1st February 2019

Mitopro Oy

                                               

                                  

Mikael Niskala                                                        Tomi Pajunen

Independent Sustainability Practitioner                     Independent Sustainability Practitioner