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Fortum

Fortum Oyj is a publicly listed energy company headquartered in Finland, with 50.1% owned by the government of Finland. It recently acquired a majority share in Uniper. In 2019, its revenue was US$6.11 billion and installed capacity was 14.23 GW. Fortum's climate ambition will be more challenging to achieve because of its acquisition of Uniper, which has been scored separately and has a lower performance score.

Ranking position
#35/50
Performance score
9.2 /20
Narrative Score
E
Trend Score
  • Trend line is up
  • Trend line is equal
  • Trend line is down
Performance module name Performance module score Rank (0-50)

Targets

1.0 / 4.0 #26

Material Investment

3.4 / 7.0 #16

Intangible Investment

1.0 / 2.0 #2

Management

1.5 / 4.0 #24

Policy Engagement

0.8 / 1.0 #3

Business Model

1.5 / 2.0 #14
Total 9.2 / 20 #35

Leading practices

Risks and opportunities

Trend

Fortum is awarded a trend score of -. If the company were reassessed in the near future, its score would likely worsen, although it is revising its climate strategy following the acquisition of Uniper. Fortum was already expected not to reduce its emissions intensity at the rate required by its decarbonisation pathway before the acquisition. The higher proportion of coal and gas in Fortum’s portfolio since Uniper’s acquisition indicates that Fortum’s locked-in future emissions will increase significantly. Fortum is therefore expected to exceed its carbon budget. Moreover, Fortum’s current climate strategy does not provide targets beyond 2020. Uniper has stated it plans to become carbon neutral in its European power generation by 2035 and its global operations by 2050. It also intends to close 80% of its coal capacity in Europe by 2025. However, Uniper has not provided a clear plan to do this and recently opened a new coal-fired power station Datteln 4 in Germany, which undermines the credibility of its statements on coal. Neither Fortum nor Uniper have clear plans or targets for how they intend to decarbonise their large Russian business, which is highly dependent on coal and gas.

Progress towards the Paris Agreement

More about the company

Headquarters
Espoo, Finland
Ownership structure
Publicly listed with 50.1% owned by the government of Finland. Recently acquired a majority share in Uniper
Group revenue
US$6.11 billion (2019)
Installed capacity
14.23 GW (2019)
Website
https://www.fortum.com/