ANNUAL REPORT 2022

Corporate
Responsibility
and Sustainable
Development

ANNUAL REPORT 2022

Contents

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT

01 FINGRID’S CORPORATERESPONSIBILITY MANAGEMENT
AND TARGETS ��������������������������������������������������������3
Introduction�������������������������������������������������������������������3

Fingrid’s corporate responsibility
management and targets

Strategic corporate responsibility
management�����������������������������������������������������������������5

Environmental responsibility

Corporate responsibility and the UN
Sustainable Development Goals �����������������������������5

Social responsibility

Material corporate responsibility topics andFingrid’s corporate responsibility targets�������������6

Good governanceCorporate responsibility GRI
and SASB disclosures

Value creation���������������������������������������������������������������8
02 ENVIRONMENTAL RESPONSIBILITY ������12
Climate ������������������������������������������������������������������������� 14

03 SOCIAL RESPONSIBILITY��������������������������� 37

04 GOOD GOVERNANCE����������������������������������� 66

Personnel�������������������������������������������������������������������� 38

Openness���������������������������������������������������������������������67

Know-how and healthy, happy personnel�������� 39

Corporate culture ���������������������������������������������������67

Relationship between the personnel
and the employer���������������������������������������������������� 42

Open communications������������������������������������������ 68

Fair remuneration �������������������������������������������������� 43
Economy – society �������������������������������������������������� 44
Generation of economic value �������������������������� 45
Tax footprint�������������������������������������������������������������47
Green financing ������������������������������������������������������ 48
Supporting and sponsoring non-profit
activities�������������������������������������������������������������������� 49
Support for Ukraine ���������������������������������������������� 49

Grid investments for integration ofemission-free electricity ��������������������������������������� 14

Stakeholders and customers �������������������������������� 50

Well-functioning electricity market ������������������� 17

Stakeholder engagement and trust ������������������ 50

Reliability and security of the electricity
system ����������������������������������������������������������������������� 17

Customers���������������������������������������������������������������� 52

Electricity transmission losses andenergy efficiency �����������������������������������������������������18
Substations’ SF6 gases�����������������������������������������21
Greenhouse gas impacts ofFingrid’s operations �����������������������������������������������21
Guarantee of origin for electricity���������������������� 27
Circular economy and material efficiency ���������� 28
Protection of nature values andbiodiversity and impacts on land
use and scenic values���������������������������������������������� 30

Customer satisfaction���������������������������������������������� 54

Feedback channels and reporting breaches�� �� 69

Goodgovernance

Information security and data protection ���������� 70
Code of Conduct ������������������������������������������������������� 71

66

Compliance of the business operations�������������� 72
Financial steering���������������������������������������������������� 72
Anti-corruption and anti-terrorism
measures������������������������������������������������������������������ 73
Managing risks and continuity ������������������������������ 73
Finance – owners and financers �������������������������� 73
Working for security of supply�������������������������������74
Fingrid’s indicators related to good
governance ���������������������������������������������������������������� 75

Landowners�������������������������������������������������������������� 54

05 CORPORATE RESPONSIBILITYGRI AND SASB DISCLOSURES����������������������� 76

Other key stakeholders���������������������������������������� 56

Reporting principles �������������������������������������������������76

Supply chain �������������������������������������������������������������� 57

Independent accountant’s assurance report �����81

Occupational safety and the safety ofthe main grid�������������������������������������������������������������� 59

Corporate responsibility GRI disclosures ���������� 84

12

Fingrid’s operations have asignificant positive climate
impact.

Safety of the main grid ���������������������������������������� 63
Fingrid’s social responsibility indicators������������ 64

Environmental impact assessments������������������ 33
Fingrid’s environmental responsibility
indicators�������������������������������������������������������������������� 35

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORTCORPORATE RESPONSIBILITY

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

01
Fingrid’s corporate responsibility
management and targets

Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Introduction
The past year will be remembered by Russia’s invasion of Ukraine and the consequent
impacts on the electricity and energy markets. The importance of Fingrid’s operationsin terms of Finland’s security of supply andour society’s vital functions became prominent. Measures were taken to enhance thereliability and security of the power systemin the changed geopolitical environment,
where information security and continuity
management became even more important. Fingrid communicated about potential
issues in the availability of electricity during the 2022/2023 winter season well inadvance to ensure awareness of potential
electricity shortages and to enable Finnish
society to prepare for potential outages.
The communication campaign, which wasstarted as early as in August, made an essential contribution in achieving voluntaryenergy savings in Finland.

BUSINESS REVIEWFor Fingrid, corporate responsibility
management above all means taking
care of our core tasks that are vital toa functioning society in a reliable andcustomer-focused manner, listening toour stakeholders and embracing sustainable ways of operation. Fingrid’s basic
task is to serve society and ensure thateveryone in Finland gets their electricity,
disturbance free. We accomplished this,even though Russia’s war of aggression
posed challenges to the functionality ofelectricity markets throughout Europe.
The current geopolitical situation caused
uncertainties in the Finnish economy, inthe availability of materials, and in theprices of commodities. Despite this, Fingrid was able to continue developing themain grid to ensure the reliability of thepower system and to mitigate the climatechange. Fingrid will develop the main grid

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORTCORPORATE RESPONSIBILITY

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

together with its stakeholders so that
Finland can achieve its goal of carbon
neutrality by 2035. The task is to ensure,proactively, that the grid investments forconnecting the numerous clean electricity
production and consumption projects ofour customers are carried out on schedule. During the year under review, gridconstruction and maintenance investments were implemented on schedule
without any serious environmental damage, and no major deviations occurred in
the supply chains in terms of contractor
obligations or employment relationships.
Increasing strongly weather-dependent
renewable power production requires therenewal of the electricity market, balancing between production and consumption,and increasing demand-side management. The geopolitical situation accelerated energy savings as well as acquiring
new reserves and sources of demand-side
management. During the year under review, the new arrangements introduced
by Fingrid included the voluntary powersystem support procedure for companies
and the public sector, aiming to make useof any flexibility potential currently outside
the balancing power markets and to avoid
outages during the winter period.
The company’s other key improvement
areas impacting climate change and the

BUSINESS REVIEW

environment are the reduction of the carbon dioxide emission impact of power
losses resulting from electricity transmission, and improving energy efficiency inthe company’s operations. An additional
goal is to achieve the maximum possible
recycling rate for any decommissioned
materials at worksites. In power line
right-of-ways, it is essential to protect
nature values and biodiversity as well as
to mitigate adverse impacts on land use
and scenic values.
Fingrid bears its social responsibility
in many ways, including in particular acommitment to the well-being of the personnel. We are proud of the relevance of
our work, and this also the foundation for
our work community’s well-being. Our
personnel is motivated and committed.
Our work community has a good teamspirit. Our employer promise is to be
one of Finland’s best workplaces, andto promote diversity in everything we do.
During the year under review, we came inthird on the Great Place to Work Finland
list in the large companies category.
The national transmission system operator has a far-reaching impact on society
and different stakeholders, all of whichhave expectations of the companies’
operations. Customer satisfaction improved even further, and our customers

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

gave us a net promoter score (cNPS) of
50. Being responsive to the expectationsof residents of areas adjacent to transmission lines and other stakeholders, andinvolving them, are an essential part ofour responsible business practices. We
work closely with stakeholders, engaging
in continuous dialogue. During the year
under review, we verified our understanding of our stakeholders’ views of Fingrid’s
sustainability work.
Our special standing in society obligates
us to operate very cost-effectively andproductively. We actively measure our operations and report the results. Our goal
is for grid service fees to be among themost affordable in Europe. We accomplished this goal, as Finland’s grid service
fees were the second most affordable ina European comparison study. Fingrid
is a responsible tax-payer and a strong
investor in Finland, employing hundredsof people each year, in addition to ourown personnel. The company is responsible for the safety of the main grid andservice providers. Fingrid complies withresponsible practices in its procurements
and operations – throughout the chain.

”

Fingrid wasable to continue
developing themain grid to ensure
the reliability of thepower system andto mitigate theclimate change.

The corporate responsibility indicators
realised in 2022 are described in moredetail in this report in connection witheach ESG theme.

GOVERNANCE

REMUNERATION REPORTCORPORATE RESPONSIBILITY

4Fingrid’s ESG Governance
ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Strategic corporate responsibility
management
Management at Fingrid is strongly basedon the company’s values: Fingrid is open,
fair, efficient and responsible. This is reflected in all our daily operations. Corporate responsibility is not an isolated function or topic, but a fixed part of Fingrid’s
strategy and our people’s work. Therefore,
corporate responsibility is highlighted ineverything we do. Corporate responsibility
and compliance management are integrated with Fingrid’s strategy, management
system and risk management practices.
The highest responsibility for sustainable
development principles and promoting
them lies with the company’s Board of Directors. The Board of Directors approves
the company’s Code of Conduct and theimplementation of the goals. Corporate
responsibility aspects are also includedin the Board of Directors’ decision-making on investments and other strategic
decisions.
The President & CEO is responsible forarranging corporate responsibility management and its integration into business
operations. The President & CEO and theheads of functions are each responsible

BUSINESS REVIEWCORPORATE LEVEL RESPONSIBILITY› Board of Directors

RESPONSIBILITY FOR CORPORATE ESG TARGETS› A director nominated by the CEO
responsible for each individual
corporate ESG targetRESPONSIBILITY FOR EXECUTION OF EACH
CORPORATE ESG TARGET› Nominated director

RESPONSIBILITY FOR DEVELOPMENT
AND MONITORING› Nominated director together
with the director responsible forcorporate responsibility at Fingrid

for compliance and corporate responsibility management within their areas of
responsibility. The executive management group regularly reviews corporate
responsibility issues, and alongside financial profitability, social issues and environmental impacts are taken into accountin a balanced manner in decision-making.
Responsibility aspects have an impact on
the remuneration of the President & CEO
and other executives, as most of the metrics used in the remuneration schemes
are also the company’s key sustainability
KPIs. The Compliance and Responsibility

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTSTeam headed by the company’s GeneralCounsel is responsible for corporate responsibility development and reportingat the company level.
In terms of the corporate responsibility
ESG targets, each environmental (E),social (S) and governance (G) target has
a director appointed by the President &CEO from the executive management
group. The appointed director is responsible for development and monitoring
together with the General Counsel incharge of corporate responsibility.

GOVERNANCE

REMUNERATION REPORT

We have described our governancesystem in more detail in the Corporate
Governance Statement for 2022, and in
the Remuneration Statement for 2022
and the company’s Remuneration Policy
for Governing Bodies.
Corporate responsibility and the
UN Sustainable Development Goals
In 2016, Fingrid signed the UN Global Compact initiative. The company iscommitted to its principles on humanrights, labour, the environment andanti-corruption.

CORPORATE RESPONSIBILITY

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

The company promotes the UN’s Sustainable Development Goals (SDGs). Outof the 17 goals, the ones pertaining toenergy, infrastructure and climate actions
are the most important for us. Fingrid
supports all in all nine of the sustainable
development goals in particular throughits operations. Our insight into our concrete participation in the realisation ofthese SDGs is available on our website.

UN Sustainable
Development
Goal

Transmission reliability in the grid, %Maintaining Finland as a single price area
Connection of wind power to the grid, MW
Development of costs in relation to the general price level

The attached table shows how Fingrid’s
corporate responsibility ESG targets andindicators are linked to the three UN sustainable development goals that mostimportant for us. Subsequent sectionsof this report will show how all nine of
the SDGs supported by us align with our
corporate responsibility targets.

Grid projects’ degree of completion, %Customer satisfaction, cNPS
Affordable grid service fees, ENTSO-E price comparison

Material corporate responsibility
topics and Fingrid’s corporate responsibility targets
Fingrid has identified the material corporate responsibility topics in its strategy
and core operations, which also serve asa basis for this Corporate Responsibility
and Sustainable Development Report.
The company has set corporate responsibility ESG targets covering environmental
responsibility (E), social responsibility (S)and good governance (G) for the material

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORS

SDG-linked indicator or target monitored by Fingrid

SF6 emissions, %Carbon dioxide emissions of transmission losses, tCO2e
Energy efficiency, energy savings, MWh

FINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORTCORPORATE RESPONSIBILITY

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ANNUAL REPORT 2022

topics. The foundation for corporate responsibility, the materiality assessment,
recognises the impacts of Fingrid’s operations on the economy, people and theenvironment. The analysis also covers
the operating environment, issues raisedby stakeholders, legislation and industry
trends. The identified corporate responsibility areas have been prioritised based on
the significance of the impacts of Fingrid’s
operations and the views of stakeholders.

Material impacts of Fingrid’s operations
Veryimportant

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT

Reliability andsecurity of theelectricity system

Fingrid’s corporate responsibility
management and targets

Connecting renewableelectricity production to
the electricity system

Environmental responsibility
Social responsibility

Stakeholders’ point of view

Good governanceCorporate responsibility GRI
and SASB disclosures

Information security
and data protection

A separate corporate responsibility survey was carried out in the year underreview, aiming to verify an up-to-dateunderstanding of Fingrid’s key stakeholders’ views and expectations in terms ofcorporate responsibility. The response
rate, expressed as the percentage of
responses received out of all emailed
invitations, was 20%. The survey was also
freely available for responders in Fingrid’ssocial media channels.

Well-functioning
electricity market

Occupational healthand safety
Trust of stakeholders
Business ethics andcompliance
Customer satisfaction
Responsible
sourcing practices

Impacts of transmission lines onland use and landscapesCompetence andpersonnel well-being

Protection ofnature values andbiodiversity

Environmental
responsibility
Socialresponsibility

Circular economy andmaterial efficiency

Fairly important

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORS

Fingrid’s point of view

FINANCIAL STATEMENTS

Good
governanceVery important

GOVERNANCE

REMUNERATION REPORT

According to the corporate responsibility
survey, personnel and external stakeholders are on average well aware of Fingrid’s
corporate responsibility, personnel somewhat more than the external stakeholders. Both personnel and external stakeholders consider that Fingrid has beensuccessful in its corporate responsibility
efforts. The average grade was 8.0 (onCORPORATE RESPONSIBILITY

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosuresa scale from 4 to 10). The geopoliticalsituation was reflected in the survey
results: the responders considered thatthe reliability, security and safety of theelectricity system as well as information
security and data protection are among
Fingrid’s five most important corporate
responsibility topics.
Fingrid’s materiality analysis was updated
on the basis of the survey results. The
greatest impacts of Fingrid’s operations
continue to link with the reliability andsecurity of the electricity system, climate change mitigation (enabling more
renewables connected to the grid), anda well-functioning electricity market. Information security and data protection
and the impacts of power lines on land
use and scenic values were recognised
as new key topics, as Fingrid needs tocontinuously build new grid sections toenable the green transition.
All these material responsibility topics areat the core of the company’s strategy. The
company promotes the transition towards
a clean power system by reinforcing themain grid and by ensuring that renewableenergy has access to the market.
Each material topic has short-term targets
extending to 2025 and long-term targets

BUSINESS REVIEW

extending to 2035. The achievement of
the targets is monitored and reported onusing indicators, each of which has its own
appointed director. The targets and therelated indicators, including the results,
are described in this corporate responsibility report using the ESG categories.
Value creation
Fingrid’s operations create significant
shared value for its customers, employees, contract partners, shareholders andthe whole of Finnish society. Fingrid’s
basic task and the value of a sufficientand reliable electricity infrastructure isevident to all people in Finland: power isreliably available, which is not a given in
all parts of the world. The societal value isin Finland’s competitiveness, by enabling
investments in Finland while keeping
grid pricing affordable in comparison topeer countries. The dividends the company pays to Finnish shareholders andits taxes circulate back to help build thewelfare of Finnish society. In addition
to our own personnel, the service providers employed by numerous projects
also benefit from the value created byus. Another form of value creation is the
support for achieving climate policy targets by building a strong main grid andmaintaining a well-functioning electricity
market necessary for clean electricity.

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORTCORPORATE RESPONSIBILITY

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Fingrid’s business model

01

02

03

RESOURCES

BUSINESS PROCESSIMPACTS

Environmental responsibility› Personnel andexpertiseSocial responsibility› Suppliers andbusiness partners

Adequacy of theelectricity transmission
systemManagement ofelectricity system
operation› Grid planning› Planning of theoperation of theelectricity system

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

Good governance› Income and debt
financing

Corporate responsibility GRI
and SASB disclosures› Electricity frompower plants andneighbouring
countries› Grid construction› Grid maintenance› Monitoring andcontrol of theelectricity system› Managing
disturbances andthe continuity of theelectricity system› Grid transmission
lines, substations andreserve power plants

Promoting theelectricity market› Enabling a carbon neutralenergy system› Developing market
rules to enable a clean
electricity system› Reliable electricity forsociety and business› Promoting the regional
electricity markets› Ensuring thecontinuity of theelectricity market› Financial benefits forstakeholders› Employment impact andother local benefits fromlarge capex projects› ICT structuresSERVICES FOR CUSTOMERS › Main grid services / Electricity market services

01 RESOURCES

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORS

02 BUSINESS PROCESSFINANCIAL STATEMENTS

03 IMPACTS

GOVERNANCE› Promoting Finland’scompetitiveness› Developing the electricity
sector and competence› Land required fortransmission lines;
natural resources andmaterials› Knowledge capital onelectricity, markets
and customers› Efficiently functioning
electricity market

REMUNERATION REPORT› Local changes in land use
and the environment andenergy losses in electricity
transmission

04 CREATION OF VALUECORPORATE RESPONSIBILITY

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ANNUAL REPORT 2022

Value created by Fingrid in 202204

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT

Fingrid promotes inparticular these UN’s
SustainableDevelopment Goals

CREATION OF VALUE

Fingrid’s corporate responsibility
management and targets› Fingrid’s nationwide main grid creates a platform for a clean powersystem. Around 500 kilometres of new grid transmission lines and 16
new or expanded substations.

Environmental responsibility
Social responsibility› Electricity transmission reliability 99.99993%.

Good governance› Wind power was connected to the main grid in the amount of 1,940
megawatts, which will indirectly result in an annual emissions reduction of
357,000 carbon dioxide equivalent tonnes in the future. The reliability ofcross-border transmission connections was 98.6%.

Corporate responsibility GRI
and SASB disclosures› Top cost-effectiveness in European energy regulators’ comparison study.
Third cheapest in ENTSO-E’s European price comparison. Customers
perceive that Fingrid works for the benefit of the whole of society (4.4/5).
› Personnel feel their work is meaningful and are ready to recommend theiremployer (eNPS 72). LTIF 5.4. Absences from work 1.5%. Number oftraining days on average 5/ employee.
› One of Finland’s largest corporate income tax payers (EUR 47 mill.).
Payments to providers of capital EUR 150 mill.
› Investments in the main grid approx. EUR 250 mill. Fingrid personnel’s
person-years 447 and service suppliers’ person-years 642.
› Direct CO2 emissions and indirect emissions due to the company’s own
electricity consumption and losses totalled 106,000 carbon dioxide equivalent
tonnes (Scope 1 and 2). 99% utilisation rate and 82% recycling rate for waste.

01

BUSINESS REVIEWRESOURCESREPORT OF THE BOARD OF DIRECTORS

02

03 IMPACTS

BUSINESS PROCESSFINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORT

04 CREATION OF VALUECORPORATE RESPONSIBILITY

10”

ANNUAL REPORT 2022

Stakeholders give Fingrid a good score,
8 on a scale from 4 to 10, for corporate
responsibility

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Corporate responsibility highlights 2022
• 1,940 megawatts of wind power
connected to the main grid
• Fingrid ranked third on the
Great Place to Work Finland
list in the large companies
category• Fingrid was Finland’s 26thlargest corporate income tax
payer in 2021
• Fingrid’s personnel gave ascore of 4.4 (on a scale from
1 to 5) when surveyed aboutsustainability compliance.

• Fingrid came second in
Oikotie’s ‘Great working-life
responsibility’ survey• Transmission reliability of themain grid was 99.99993%• Customer survey cNPS was 50,
and personnel’s eNPS was 72

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORTCORPORATE RESPONSIBILITY

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

02
Environmental responsibility

Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Fingrid’s operations have a significant
positive climate impact as our positive
carbon handprint is substantially larger than our negative carbon footprint.
The positive handprint is composed ofFingrid’s measures to reinforce the main
grid for the needs of clean electricity production and for connecting it to the grid,
which indirectly prevents greenhousegas (GHG) emissions and enables thetransformation towards a clean powersystem in line with Finland’s climate targets. The negative carbon footprint andenvironmental impacts from investments
are reduced in line with Fingrid’s land use
and environmental policy.

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORTCORPORATE RESPONSIBILITY

Environmental
responsibility

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ANNUAL REPORT 2022

Fingrid’s main environmental aspects
CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

FINGRID’S
NATIONWIDE MAIN GRIDCREATES A PLATFORM
FOR A CLEAN POWER
SYSTEM

Consumption ofnatural resources
and the climate
impact in building
and maintaining
the grid

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

Climateimpact oftransmission
losses

GOVERNANCE

Positive andnegative impactsof power lines onluontoarvoihin(sic!) andbiodiversity

REMUNERATION REPORT

Landscapechanges andlimitations onland use

Impacts ofcontingencies atsubstations andreserve power
plantsCORPORATE RESPONSIBILITY

Environmental
responsibility

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

ClimateAction to mitigate climate change isamong Fingrid’s most significant responsibility actions: the main grid provides aplatform for a clean power system. By
reinforcing the transmission grid for theneeds of clean electricity production
and consumption, we enable Finland toachieve its climate targets. TSOs’ role asenablers of achieving climate targets is
widely recognised in various countries.

Grid investments for integration of emission-free electricity
Responsibility
visionShort-termtarget 2025

Long-term
target 2035

Corporate
responsibility
viewpoint andUN’s SDG

Finland carbon
neutral by 2035

Fingrid’s investments
and development
projects enable thereduction of carbon
dioxide emissions inelectricity production

Enabling the emissionfree electricity production
required for a carbon
neutral Finland andincreased demand forelectricity.

Environment
Climate –emission-free
power system

Grid investments to be
carried out to integrate
emission-free electricity
production to the gridwere completed onschedule, the market
development projects
were completed and thegrid’s system security
remained good.

The main grid does
not restrict Finland’stransition to carbon
neutrality, the markets
balance out production
and consumption, goodsystem security.

Fingrid is committed to operating in accordance with global climate targets andto limiting the rise in global temperature
to 1.5 degrees. Fingrid does not haveelectricity production of its own, but instead promotes the mitigation of climatechange by connecting clean production
to the power system and by transferring
electricity from producers to consumers.
Integrating new emission-free electricity production and consumption into thepower system requires reinforcing of themain grid. Fingrid’s total capital expenditure on the main grid over the next ten
years will amount to roughly three billion
euros. More than 3,500 kilometres of newtransmission lines will be built during thisperiod.

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Environmental
responsibility

14

ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

The grid investment programme currently includes a record number of ongoingprojects, which will secure adequatetransmission capacity for society’s needs
and maintain unified electricity pricing
throughout Finland, as laid down in Fingrid’s statutory duties. The most important and topical projects for mitigatingclimate change are:
• Forest Line, transmission link from
Petäjävesi to Muhos via Haapavesi
completed in the autumn 2022
• Grid development project in the
Oulujoki region completed inautumn 2022
• Lake Line, transmission link
between Vaala and Joroinen• Aurora Line, third AC connection
to Sweden• Transmission line project between
Rovaniemi and Vaala• 400-kilovolt cable link in Helsinki• Numerous substation projects
to enable the connection of wind
power
In 2022, around 500 kilometres of newtransmission lines and 16 new or expanded substations were completed. Roughly
68 substations were under construction.

BUSINESS REVIEW

Around 740 kilometres of new transmission lines were in pre-construction
planning.

tricity and for replacing fossil fuels withrenewable forms of energy, such as wind
power.

Fingrid made the investment decisionon the first 400-kilovolt cable link project. This is a joint project between theCity of Helsinki, Helen Sähköverkko andFingrid to create a connection from the
Länsisalmi substation in Vantaa to the
Viikinranta energy block in Helsinki. The
underground cable link will reinforce theelectricity network of the capital regionand support the transformation into
carbon neutral energy production. In themain grid, the use of underground cables
will be limited to substation areas andurban areas when it is not possible to use
overhead cables due to a lack of physicalspace.

A new section, Verkkokiikari or ‘Grid
Scope’, was launched on Fingrid’s website to provide up-to-date information
on public wind power projects as wellas on the current and future connection
capacity of the main grid on a map platform. Grid Scope will be a useful tool forgovernment organisations as well.

In March 2022, Fingrid received the
Vuoden Tuulivoimateko 2021 award forits long-term work and partnership indeveloping Finland’s wind power industry. The Finnish Wind Power Association
annually selects an industry player or entity that has supported the development
and growth of wind power in Finland ina significant way. The jury’s motivation
focused on the fact that Fingrid’s gridinvestments are an enabling factor for
Finland becoming self-sufficient in elec-

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

More information on grid investments in
2022 is available in the Annual Report’s
Business Review.

”

Fingrid
received the
VuodenTuulivoimateko
award.

How does connecting wind power to the gridpromote climate change mitigation?
Wind power for a long time accounted for a minor percentage of electricity production in Finland. Thanks
to the energy transformation, wind
power capacity has increased substantially, which requires larger andfaster investments from Fingrid.
Dozens of new substations and hundreds of kilometres of transmission
line are needed quickly in order to

GOVERNANCE

REMUNERATION REPORT

get the wind power on the markets.
What makes this challenging are
the time-consuming grid planning,
permit and construction processes, the availability of resources,
and the uncertainty of wind farm
implementation. Fingrid’s goal is todevelop its main grid in a way that
accounts for any new connection
and transmission needs.

CORPORATE RESPONSIBILITY

Environmental
responsibility

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Case

Case

Large share of solar and wind power
requires action to ensure the stabilityof the grid
Solar and wind power account for
rapidly increasing shares in energy
production, which poses new challenges to the technical effectiveness of thepower system. Wind and solar power
connect to the grid via frequency converters, which is an essential difference
from conventional power plants.

Clean energy from a hybrid
power plant
The municipality of Simo in southwestern Lapland will pair its wind
power plants with a solar power
plant to be developed by Exilion
Tuuli Oy. This hybrid power plantis due for completion in 2025
and will be both the first of its
kind and the largest solar power
plant in Finland. The output of theplant consists of 70 megawattsof solar power and a total of 169
megawatts of wind power. The
goal is to consolidate renewableenergy both from sunlight andstrong winds, which often occur
at different times.

The weather-dependent types ofgeneration lack characteristics that
inherently maintain the stability of thepower system. In Finland, however,converter-connected resources are
required to include functionalities that
support the grid, such as voltage control features and residual current devices in case of voltage disturbances.
It is becoming a common requirementof converters internationally in some”Wind and solar power connect to the grid bytechnical means differing from conventional
power plants and have different technical characteristics. This is the reason for the challenges
we are facing,” says Antti Harjula, Manager,
Power System Engineering at Fingrid.

applications to include grid-supporting
characteristics in order to keep an converter-dominated system stable. Suchsystems are still in the development
stage, however. In Fingrid’s view, one
alternative is to build and connect tothe grid large synchronous machines
without an energy source to stabilise
the grid. Such a device will be built in
the Ostrobothnia region of western
Finland, at the Jylkkä substation, close
to a very large number of wind turbines.

“The Simo wind farm is combined with asix-megawatt battery storage for storing
any surplus production. This energy storage also helps to maintain the stabilityof the grid,” says Customer Manager
Onni Härmä from Fingrid.

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Well-functioning electricity market
Fingrid promotes the functioning of theelectricity market by actively taking partin its maintenance and development on
the European, Nordic and national level,and by developing transmission connections proactively and in the long term.
Development of the transmission links
in the main grid is based on customers’
future needs, promoting the functioningof the Baltic Sea region’s electricity markets, cost-effectiveness, and managing
the ageing of the grid.
The energy transformation calls for therevamping of the electricity market.
Increasing weather-dependent energy
production makes the electricity markets
less predictable. So, in order to guarantee
the security of supply, trading on the electricity market will move closer to real time,
towards the actual time of consumption.
This development is both increasing thevolume of necessary data and accelerating decision-making. Fingrid has several electricity market development andprocess automation projects underway.
Upcoming modernisations will take theelectricity market in a more real-time andmarket-driven direction in a way that will
result in closer cooperation between various electricity market players. In a clean

BUSINESS REVIEW

power system, the flexibility of electricity
consumption and production is essential.
More information on the electricity market’s development projects in 2022, suchas the 15-minute imbalance settlement
project and projects to renew the reserve
markets, is available in the Annual Report’s Business Review.
Reliability and security of the electricity system
It is necessary to accomplish climatechange mitigation and achieve climate
targets without endangering the reliabilityof the power system. A reliable transmission system is essential for a functioning
society. Fingrid transmits electricity in asecure and reliable way, while ensuringthat the production and consumption ofelectricity are kept in balance.
Fingrid transmits the electricity generated by power plants that are connectedto the main grid to our grid customers
reliably and with high quality. Electricity
is imported and exported also between
Finland and its neighbouring countries.
Electricity transmission reliability is
maintained and monitored continuously.
During the year under review, 99.99993%
transmission reliability was achieved on

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

the main grid. The calculated cost of the
disturbances (regulatory outage costs) toconsumer customers was EUR 4.7 million.
The main grid is designed and operated
in such a way that individual faults do not
result in a disturbance that spreads tothe entire grid. The cost of a nationwide
transmission blackout to customers andsociety at large would be significant, inthe region of EUR 100 million for eachhour of outage. This figure is a telling indication of the significance of Fingrid’s
success in its basic task.

”

Electricity
transmission
reliability rate
was 99.99993%.

Regulatory outage cost, ROC
M€
12
10
8
6
4
2
0

GOVERNANCE

2013

2014

2015

ROC (non-HRR)
ROC (HRR)
ROC total (incl. HRR)

2016

2017

2018

2019

2020

2021

2022

Non-HRR covers faults remedied by a delayed
automatic reconnection or a manual reconnection.
HRR = faults remedied by a high-speed automaticreconnection
ARR = faults remedied by a delayed automaticreconnection

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

The management of the power system
becomes more difficult as the productionof weather-dependent, emission-freeelectricity significantly increases. This is
the reason for developing the management of the electricity system, increasing
automation and seeking sources of demand-side management to help balance

power production and consumption. A
key trend is the increasing participationof power system users in the balancing ofelectricity production and consumption.
More information on power system management in 2022 is available in the Annual
Report’s Business Review.

Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Electricity transmission losses and energy efficiency
Responsibility
visionShort-termtarget 2025

Long-term
target 2035

Corporate
responsibility
viewpoint andUN’s SDG

Emission-freetransmission
lossesFingrid’s gridinvestments haveenabled the integrationof new emission-free
production into thegrid, reducing theCO2 emissions oftransmission losses
without any carbon
offsets

In a carbon neutral
Finland, transmission
losses do not cause
any CO2 emissions

Environment
Climate change– emissions fromtransmission
losses and energy
efficiency

Fingrid is energy
efficient in all of its
operations

Improved energy
efficiency based on
our commitments

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GOVERNANCE

Case
Research data on a major blackout
A blackout of the grid is a rare, but
extremely serious scenario. The outages caused by a system collapse of
the main grid can extend throughout
Finland or even to other Nordic countries, and the resulting domino effectcan cause serious safety hazards. Evensystem restoration entails risks, as thegrid is in a sensitive, volatile state during the repair work.
Fingrid’s Expert Antti-Juhani Nikkilä
studied this topic in his dissertation
thesis titled Power system restoration
after a system level blackout: Measures for system operation to manage
technical uncertainties during the bottom-up restoration of a transmission
network (Tampere University, 2022).
Nikkilä and other Fingrid experts modelled and tested various operational
procedures for system restoration after
a system-level blackout, which are presented in the thesis.

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Expert Antti-Juhani Nikkilä: “Powersystem restoration after a system-level
blackout is overall a very demandingtask. The network being restored isextremely weak, unstable and prone toelectrical phenomena seldom encountered during normal operation.”

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Climate targets are promoted by moving
into cleaner electricity production, by reducing power losses in electricity transmission and improving energy efficiency.
The annual variation of losses resulting
in electricity transmission is affected by
the Nordic electricity production situation, such as the volume of hydropower.
The majority of Fingrid’s greenhouse gas
emissions are caused by the production of
the electricity acquired from the electricity market to replace power losses taking
place during electricity transmission.
The key tool for reducing the carbon
dioxide emissions caused by transmission losses is the cleaning of electricity production and building the grid toaccommodate the needs of new clean
production, which will also reduce thecarbon footprint from energy lost during
grid transmission. In 2022, the volumeof transmission losses in the main gridincreased from the level of the previous
year and amounted to 1.6 terawatt hours.
This was 2.3 per cent of Fingrid’s totaltransmission volume of 70.1 terawatt
hours. The greenhouse gas emissions due
to transmission losses came to 96,000
carbon dioxide equivalent tonnes.

BUSINESS REVIEW

Additionally, losses are minimised by
implementing energy-efficient grid investments and equipment procurements.
In 2022, we decided to, for example, give
more consideration to losses in future
reactor procurement.
Fingrid is a signatory of the Finnish Energy
Efficiency Agreement for Industries. The
voluntary energy efficiency agreements
are Finland’s primary method for meetingthe EU’s strict obligations for more efficient use of energy. For the 2017–2025
agreement period, we have set a 12.9 percent savings target, which corresponds
to more than 180,000 gigawatt-hours ofenergy savings.
The most significant energy savings in
2022 were gained by completing the Forest Line, a new transmission line that will
yield roughly 90,000 megawatt-hours inestimated annual energy savings. Thanks
to the completion of this project, Fingrid
has now reached its overall savings target
for the 2017–2025 agreement period; anew, updated target will be considered
for the remainder of the period. Other
major energy saving measures completed in 2022 included the installation ofheat pumps in two turbine rooms at the

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

Huutokoski reserve power plant (savings
approx. 150 MWh/a) and improving thefunctional logic of the generator heating
elements at the Forssa reserve power
plant (savings approx. 50 MWh/a). In
addition, the insulation of house doors
was improved and luminaires were replaced with LED units at several reserve
power plants and at a few substations.

Furthermore, ventilation equipment fittedwith heat recovery systems was installedat substations. The total energy savings
from these measures amount to roughly
30 MWh/a. Fingrid participated in the‘Down a degree’ campaign which meant
a reduced indoor temperature in thehead office and communication efforts
to boost energy saving.

Why does Fingrid not compensate for the carbon dioxide
emissions from electricity transmission power losses?
The faster we can add moreclean electricity production to
the main grid, the fewer carbon
dioxide emissions will result fromthe power losses from electricity
transmission. When electricity
transmission increases, power
losses also always increase. Developing the transmission grid in

GOVERNANCE

REMUNERATION REPORT

order to connect renewable energy
to the main grid reduces carbon
dioxide emissions even more as awhole, however. We are therefore
looking for the greatest overall
benefit, and our goal is for theelectricity transmitted in the main
grid to cause zero carbon dioxide
emissions in 2035.

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ANNUAL REPORT 2022

ENERGY CONSUMPTION

2022

2021

2020

t

2,000

1,700

1,600

GJ

85,50071,90067,800

GWh

1,600

1,450

1,470

GJ

5,752,000

5,218,000

5,292,000

Energy produced with thefuels consumed by leased
reserve power plants

GWh
GJ

1.0
3,500

1.0
3,600

1.1
3,900

Reserve power plants’auxiliary energy

GWh
GJ

11
40,10013
47,4001244,300Reserve power plants’
district heating

GWh
GJ

1.1
4,100

0.7
2,500

0.4
1,300

Substation auxiliary energy

GWh
GJ

19.1
68,80019.5
70,200-Electricity of Fingrid’s own
premises

GWh

2.5

2.6

2.6

DirectLight fuel oil

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

IndirectElectricity transmission
power losses

District heating of Fingrid’s
own premises

GJ

9,100

9,300

9,400

GWh
GJ

1.3
4,,800

1.3
4,600

1.0
3,500

ENERGY INTENSITY

BUSINESS REVIEW

Fingrid also pushes the room temperature ‘Down a degree’
In the winter of 2022, Fingrid participated in the governmental sustainable
development company Motiva’s ‘Down
a degree‘ campaign, aimed to inspire
private citizens, organisations andcommunities to save energy throughout the country.

Suvi Saarinen: “Using firewood forheating was convenient when working
remotely from home. This winter, I decided to save electricity by making my
coffee on the wood burning cook stove.
I also heated up dishwashing water on
the stove. In the sauna, I shower lessand use the warm water from the sauna
stove instead. I have also replaced oldyard lights with LEDs.”

The reporting encompasses the entire company. In the reporting for 2021, the substations’ auxiliary energy
was reported as a separate item for the first time. The substations’ auxiliary energy was previously included intransmission losses.

Fingrid’s total energy
consumption divided
by net sales

Case

GJ/€1000REPORT OF THE BOARD OF DIRECTORS

2022

2021

2020

3.2

4.9

7.9

FINANCIAL STATEMENTS

GOVERNANCE

As one of the campaign’s corporate
participants, Fingrid pledged to highlight its own energy saving results.
Internally, this was accomplished bychallenging staff to share their energy
saving efforts at home and at work or
while commuting. Fingrid’s social media channels (Instagram, Twitter andFacebook) regularly featured energy
saving cases over the winter.

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Environmental
responsibility

20

Substations’ SF6 gases
ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

Responsibility
visionShort-termtarget 2025

Long-term
target 2035

Corporate
responsibility
viewpoint andUN’s SDG

Main grid does
not cause SF6
emissions

Reducing SF6 gas
emissions using modern
technologies andpreparing for adoptionof new technologies

SF6 gas emissions at
a minimum, all new gasinsulated switching
substations comply
with the selected newtechnology and are
SF6-freeEnvironment
Climate change –SF6 gasemissions

Environmental responsibility

The roadmap for new
technologies has beendrawn up and a pilot
project is underway

Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

The grid’s SF6 emissions
are low compared withother TSOs

The lowest SF6 gas
emissions caused by amain grid in the world,when compared withother TSOs

Fingrid’s transmission grid consists ofmore than a hundred substations which
consist of both air-insulated and gas-insulated switching substations. Over the
decades, sulphur hexafluoride, or SF6gas, has become established as themost common switching medium anddielectric gas in switching stations andcomponents. Despite its excellent technical properties, the SF6 gas is a powerfulgreenhouse gas. The handling of SF6 gas
is steered by the EU’s F-gas Regulation,
which sets limits for leak monitoring andgas handling competence requirements.
Fingrid has for several years focusedon the continuous technical monitoringof SF6-gas to detect even the smallest
leaks and to respond to them quickly.
Fingrid has also decided to reduce its use
as the equipment reaches the end of its
service life and new technology enables
new solutions. It is not possible to switch
out the SF6 gas without modernising theequipment. The large-scale use of new
solutions is currently restricted by technical requirements and a lack of practicalexperience. The long-term goal for 2035
is to use new, SF6-free technology in all
new gas-insulated switching substations.
In 2022, the first SF6-free gas-insulated
switchgear (GIS) was taken into use at

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Virkkala, in Lohja. The next three projects
were under construction at Luukkala, in
Lappeenranta, in Heinola, and at Kauppila, in Kangasniemi. It has also been decided to build the new substation in Kirkkonummi without using SF6 gas. Fingrid
will continue to monitor the developmentof new eco-friendly technologies and test
new solutions entering the markets.
At the end of 2022, Fingrid had roughly
54 tonnes of SF6 gas at its substations.
In 2022, Fingrid’s SF6 gas emissions
totalled 800 carbon dioxide equivalent
tonnes. This means 32 kilograms of gas
and a leakage rate of 0.06%. The longterm annual leakage rate has been very
low, less than 0.2% on average, among
the top results in the International Transmission Operations & Maintenance Study(ITOMS).
Greenhouse gas impacts ofFingrid’s operations
Building up and operating the main gridis necessary to achieve the set climate
targets, but it also results in emissions
and a negative carbon footprint. In 2019,
we started a real-time assessment of thepower system’s carbon dioxide emissions.
In 2020, we started to use the more real-time emission factor for electricity
consumed in Finland calculated in this

CORPORATE RESPONSIBILITY

Environmental
responsibility

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosuresway, instead of our earlier practice ofusing the emission factor published by
Statistics Finland. The calculation formulain use for the emission factor is based onreal-time production, import and export
data, and emission factors for specificforms of production.
The average emission factor for theelectricity consumed in Finland in 2022
was 60 g CO2/kWh. The emission factor decreased from the previous year
(91 g CO2/kWh in 2021), which indicates
positive progress in achieving Finland’s
climate objectives. The decrease in theemission factor results from a decrease in
the electricity consumption and changes
in cross-border transmission, i.e. in the imports from the Nordic countries, exports
to Estonia and especially the discontinued sourcing of electricity from Russia.
As regards production, the decrease in
the emission factor was a result of theincrease in nuclear power and wind power.
In 2022, Fingrid’s direct greenhouse gas
emissions and the indirect emissions
due to the company’s own electricity
consumption and losses (Scope 1 and 2)
amounted to roughly 106,000 CO2 equivalent tonnes. Most of the emissions (approx. 90%) were caused indirectly by theelectricity production required to replace

BUSINESS REVIEW

power losses taking place during electricity transmission. Roughly 0.2 per cent of
Finland’s greenhouse gas emissions are
our emissions (Scope 1 and 2). Fingrid’s
greenhouse gas emissions totalled roughly 251,000 CO2 equivalent tonnes when
including also the indirect emissions frombusiness travel and purchased transmission line materials (Scope 1, 2 and 3).
In addition to the carbon footprint, Fingrid’s operations also have a significant
positive carbon handprint. In 2022, altogether 1,940 megawatts of wind power
were connected to Fingrid’s main grid,
which will help to indirectly avoid annual
emissions worth around 357,000 CO2equivalent tonnes in the coming years.
During the year, Fingrid concluded agreements on connecting a total of approximately 770 megawatts of wind power
production to the electricity grid. Once
realised, this will lead to a substantial positive climate impact, indirectly avoiding annual emissions worth around 141,000 CO2equivalent tonnes. During the year underreview, Fingrid received an increased
amount of enquiries regarding renewableenergy connections. The total power of
new connection enquiries in 2022 wasapproximately 80,000 megawatts, which
is nearly six times the production capacity
in Finland at the end of 2022.

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Environmental
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22

Greenhouse gas emissions, tCO2e (scope 1 and 2)

ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility

Transmission
Transmission losses
losses

96,000Good governanceCorporate responsibility GRI
and SASB disclosures

tCO2e
tCO2e

Reserve
Reserve power
power
plantsplantsSubstations
Substations

tCO2e
tCO2e

tCO2e
tCO2e

7,900

Transmission
Transmission losses
lossesReserve
Reserve power
power plants
plants

2022
2021
2020
2022
2021
2020
96,00096,000 132,000
132,000 106,000
106,000
7,900
7,800
7,000
7,900
7,800
7,000

Substations
Substations
Electricity
Electricity andand heatheat ofof Fingrid’s
Fingrid’s own
own premises
premises

1,900
1,900
400
400

2,200
2,200
400
400

1,900

REPORT OF THE BOARD OF DIRECTORS

300*
300*
300
300

FINANCIAL STATEMENTS

400
tCO2e
tCO2e

its
reporting,In
its emissions
emissions
reporting,
In itsIn
emissions
reporting,FingridtheFingriduses
the realrealFingrid
uses uses
the realemission
timeemissionfactorfortime timeemissionfactorfactor
for forconsumedelectricity
consumedelectricity
consumedelectricity(averageg(averageofg 6060g CO2/
CO2/(averageof 60ofCO2/
inkWhin 2022).
2022).
kWh kWhin 2022).

*Substations’*Substations’ auxiliary
auxiliary energy
energy not
not itemised
itemised

BUSINESS REVIEWElectricity
Electricity andand heatheat ofofFingrid’s
Fingrid’s own
own premises
premises

GOVERNANCE

REMUNERATION REPORTCORPORATE RESPONSIBILITY

Environmental
responsibility

23

Fingrid’s carbon handprint, tCO2e
Carbon handprint means the positive climate
impacts of activities, i.e. emission reductions.
ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility

The wind power connected to the main grid in
2022 will create, in future, an annual indirectemission reduction ofGood governanceCorporate responsibility GRI
and SASB disclosures

The agreements concluded in 2022 to connect
wind power to the electricity grid will create,in future, an annual indirect emission reduction of

141,000

357,000

CO2 equivalent tonnes

CO2 equivalent tonnes

In its emissions reporting,
Inusesits emissions
Fingridthe real- reporting,Fingrid uses
theforrealtime emission
factortime emission
consumedelectricityfactor for
consumed(averageof 60 gelectricity
CO2/(average
kWh in2022). of 60 g CO2/
kWh in 2022).

This equals the annual carbon footprint of some 36,000 Finns.
A Finn’s carbon footprint is approximately 10 CO2 equivalent tonnes on average.

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Fingrid has been reporting on its climate
impact according to the Global Reporting
Initiative (GRI) and the Greenhouse Gas
Protocol (GHGP) since 2011. We also
apply the Task Force on Climate-related
Financial Disclosures framework whendisclosing the business risks and opportunities related to climate change. In our
TCFD fact sheet we have compiled our
climate targets and information on how
climate change impacts are taken into
account in Fingrid’s governance, strategy
and risk management.
From a climate risk viewpoint, Fingrid
prepares for the physical risks of extreme
weather phenomena, which are becoming more common and more powerful,in grid construction and operations. The
transition risk, i.e. the transition to a clean
power system, is being prepared for bybuilding the main grid rapidly enoughto achieve the climate targets, whichmeans proactive environmental impact
assessments, successful stakeholder engagement, fast project permit processes
and effective project management. In
2022, we applied the approach of theTaxonomy Regulation, determining thematerial physical climate risks linked withFingrid’s operations and creating a pro-

BUSINESS REVIEW

cess for this assessment. In future, we willassess the physical climate risks and theimpacts of adapting to climate change asa part of the company’s 360-degree risk
management.
Reserve power plants
In addition to the sulphur hexafluoride
gas (SF6) in substations, direct greenhouse gas emissions are caused by thecompany’s reserve power stations. The
reserve power plants are only used inserious disturbances of the power system and in test runs for ensuring theirreliable operations, but not in commercial
electricity production. The plant-specifichours of operation mainly consist of test
runs, in the region of just around ten hours
per year. The low running hours of thereserve power plants limits their impacts
on the quality of air and their greenhousegas emissions, which in 2022 amounted
to roughly 7,900 CO2 equivalent tonnes.
Fingrid’s reserve power plants are included in the European Union’s emissions
trading system. The accuracy of themeasuring and reporting systems for fuelconsumption (light fuel oil) is verified byan accredited emissions trading verifier.
A total of 6,006 units (tCO2) of emission

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

allowances were returned, 100% of which
consisted of purchased emission rightunits. Fingrid has not been granted freeof-charge emission rights for the emissions trading period 2021–2030. The
purchased emission right units amounted
to 4,000 in 2022. Emissions trading had
minor financial significance for Fingrid.
The management of the reserve power
plants’ environmental impacts is supported by ISO 14001 environmental certification. During 2022, several broad-ranging
reviews linked with the continuous improvement of operations were carriedout at the plants, concerning topics suchas process risk assessment, fuel storage systems and facilities with explosion
hazards. The training programme also
included a joint oil leak containment exercise for all the reserve power plants aswell as rehearsals focusing on the rescueof injured personnel from a confined orclosed space. Training rehearsals are an
important way of maintaining the skills
required for emergency preparedness.
Other indirect emissions
The material procurements (towers,
conductors and foundations) for theapproximately 500 new transmission
line kilometres taken into use in 2022,
resulted in emissions of some 144,000
CO2 equivalent tonnes. The significantly larger emissions from the procured
materials can be attributed especiallyto the completion of the Forest Line, amajor transmission line project aimed
to reinforce the north–south transmission capacity necessary for the energy
transformation. Other indirect emissions
resulted from business travel. Fingrid iscurrently developing the coverage of its
Scope 3 reporting.

RESERVE POWER PLANTS’ SULPHURDIOXIDE AND NITROGEN OXIDE EMISSIONS

2022

2021

2020

Sulphur dioxide, SO2, tonnes

0.5

0.6

0.4

Nitrogen oxides, NOx, tonnes

40

25

23

GOVERNANCE

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responsibility

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT

GREENHOUSE GAS (GHG) EMISSIONS*

2022

2021

2020

Direct emissions (Scope 1), tCO2e

7,000

6,000

5,000

Indirect emissions (Scope 2), tCO2e

99,000136,000

108,000

Total (Scope 1 and 2), tCO2e

106,000

142,000

114,000

Other indirect emissions (Scope 3), tCO2e

145,000

24,0004,000

Total (Scope 1, 2 and 3), tCO2e

251,000

165,000

118,000

6,000

5,000

5,000

800

400

300

Total, tCO2e

7,000

5,000

5,000

Social responsibility

Transmission losses, tCO2e

96,000132,000

106,000

Good governance

Energy produced with the fuels consumed
by leased reserve power plants, tCO2e

1,000

1,000

1,100

Reserve power plants’ auxiliary energy, tCO2e

700

1,200

900

Reserve power plants’ district heating, tCO2e

200

100

100

1,100

1,800

–

Environmental responsibility

Reserve power plant fuels, tCO2e**
Substations’ sulphur hexafluoride, tCO2e
Indirect emissions (Scope 2)

Corporate responsibility GRI
and SASB disclosuresequivalent emissions in Finland in 2021 were
47.7 million carbon dioxide tonnes. The shareof Fingrid’s Scope 1 and 2 emissions of all
Finnish CO2 emissions amounted to approximately 0.2% in 2021. Fingrid’s CO2 emission
calculations are based on the EU emissions

Direct emissions (Scope 1)

Fingrid’s corporate responsibility
management and targets* According to Statistics Finland, the total CO2

Substations’ auxiliary energy, tCO2e***Electricity used at Fingrid’s own premises,
tCO2e
District heating of Fingrid’s own premises,
tCO2e
Total, tCO2e

trading system (EU-ETS) and on the international Greenhouse Gas (GHG) Protocol standards. The emission factors for electricity usedin Fingrid’s CO2 calculations are based on theannual averages of Fingrid’s real-time electricity consumption data (2022: 60 kg CO2/
MWh, 2021: 91 kg CO2/MWh and 2020: 72 kg
CO2/MWh). The presented Scope 2 emissions
figure is location-based. The CO2 calculations
are also based on Statistics Finland’s mostrecent emission factor for district heat pro-

200

200

200

duction and IPCC 2013 (AR5) Global Warming
Potentials (GWPs). The CO2 emissions from

200

200

100

district heating were calculated using the aver-

99,000136,000

108,000

age published by Statistics Finland for the last

Other indirect emissions (Scope 3)

three statistical years, 177 kg CO2/MWh, as
Business travel (flights and kilometrereimbursed business trips), tCO2e

800

300

300

Purchased transmission line materials, tCO2e

144,000

24,1003,200

Total, tCO2e

145,000

24,0004,000

the emission factor.
**The figure for 2022 is preliminary, the final
figure will be confirmed in the emissions trading verification.
***The 2020 figures for the CO2 emissions
from transmission losses also included substations’ auxiliary energy emissions, which havesince been reported separately.

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

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responsibility

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ANNUAL REPORT 2022

GREENHOUSE GAS EMISSIONS INTENSITY
Fingrid’s direct (Scope 1) and indirect (Scope 2)
GHG emissions divided by amount of electricity
transmitted

2022

2021

2020

Specialist Taneli
Leiskamo was

gCO2e/kWh

1.5

2.0

1.7

not surprised by
Finland’s low CO2
intensity: “As much

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

as 90% of our annual consumption

Guarantee of origin for electricity
Fingrid Oyj is responsible for the electronic guarantee of origin (GO) register
service in Finland. Fingrid Oyj has entrusted this task to its fully owned subsidiary
Finextra Oy. Keeping of a register is an
official task which is supervised by the
Energy Authority. Finextra’s GO register
was taken into use on 1 January 2015.
Electricity GOs are certificates for verifying that electricity has been produced
from renewable energy sources or byhigh-efficiency cogeneration. As of thestart of 2022, electricity produced from
nuclear power can also be granted aguarantee of origin.

BUSINESS REVIEW

An electricity supplier that sells or uses
renewable energy in its marketing mustcertify the origin of the electricity. In thesame way, an electricity producer anduser that, in its other business, gives its
customers information about the originof the electricity it uses, must verify the
proportion of renewable energy sources.
Verification takes place by cancelling anamount of guarantees of origin corresponding to the amount of electricity
marketed as renewable.
Finextra is a member of AIB (Associationof Issuing Bodies). Transfers of GOs between the electronic registers of different
countries are carried out via the EECS
Hub administered by AIB.

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

now comes fromemission-freesources.”Case
Record clean electricity
On Sunday 12 of June 2022, the cleanness of electricity consumed in Finland
reached a momentary all-time high.
The nationwide emission factor for thatday reached the historically low figureof 24 g CO2/kWh.
The cleanness record was made possible by the relative abundance, in relation to the consumption, of wind power,hydropower and nuclear power as wellas imported low-emission electricity
from Sweden and Norway. Some of
the clean electricity was further transmitted from Finland to Estonia via DC
connections.

REMUNERATION REPORTAs much as 90% of Finland’s annual
consumption of electricity now comesfrom emission-free sources, mainly
consisting of nuclear power and renewables. The electricity imported
from Norway and Sweden is also very
clean.
Businesses and private consumers
can, if they so wish, favour zero-emission sources of electricity by arrangements such as long-term supply
agreements, guarantee of origin certificates or in-house production.

CORPORATE RESPONSIBILITY

Environmental
responsibility

27

Circular economy and material efficiency
ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

Responsibility
visionRecyclingmaterials andreducing waste

Environmental responsibility

Short-termtarget 2025

The recycling rate fordemolition material from
Fingrid’s operations is
90% and the utilisation
rate is 98%

Long-term
target 2035

New solutions for therecycling and use ofmaterials

Corporate
responsibility
viewpoint andUN’s SDG
Environment
Circular economy
and material
efficiency

Reduction of constructionwaste at worksites andreduction of office waste

Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Transmission line structures have a longservice life. Normal maintenance gives atransmission line a technical service life of
65 to 80 years, depending on the specificstructure, and with improvement maintenance, this can be further extended byroughly 20 years. The standard replacement cycles of substation equipment
are roughly 20, 40 or 60 years. Major
maintenance and replacement needs onbuildings and other structures are synchronised with the equipment renewals.
Chemical safety and material efficiency
are major concerns in maintenance work.

BUSINESS REVIEWThe efficiency of the main grid maintenance management is boosted throughdigital condition monitoring, which produces up-to-date data from the substations. This makes it possible to implement
maintenance measures depending on theactual condition of substation equipment,
resulting in improved material efficiency
and lower emissions due to fewer visits tothe substation. In addition to the positiveenvironmental impacts, digital condition
monitoring also improves safety by reducing the risks related to the conditionof substation equipment.

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

The largest material flows of Fingrid’s
operations result from investment projects, when new electricity transmission
grid sections are built and the old structures are dismantled. The majority of thedemolished materials are concrete fromtransmission line towers and the foundations of substation structures, steel
scrap from transmission line towers andsubstation structures, and metal scrap
containing aluminium and steel from thetransmission line phase conductors. All ofthese can be recycled as materials. The
number of decommissioned impregnatedwooden towers is low and they are usedas energy. In addition to investments, themaintenance of the main grid results insmall volumes of decommissioned materials. The waste volumes for transmission
line maintenance are low and are not yet
included in reporting.
Also the waste volumes resulting fromoffice work and their significance issmall for Fingrid, and waste volumes foroffice work are not reported. Efforts to
reduce the environmental impacts of office work include supporting personnel’senvironmental know-how and increasing awareness especially about topicalenvironmental issues. This was the aimof our 2022 environment theme day for

GOVERNANCE

REMUNERATION REPORT99 %UTILISATION RATE

82 %RECYCLING

Material volumes generated
by Fingrid’s operations in 2022,
by tonnes
1,400

70

700

10,000Recycling or reuse
Other utilisation
Combustion in a power plant
Final disposal

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosuresthe entire staff. The topics covered thisyear included environmental aspects
in procurements, the climate impact of
ICT equipment and applications, emission-free worksites, EU Taxonomy andsustainable investing.
Fingrid owns all of the decommissioned
materials from substations, reserve power plants and transmission line worksites
and is responsible for arranging waste
management for them. Waste management is arranged in a centralised mannerwith a single waste management provider. The same service provider that is incharge of transmission line maintenancein the area in question is also responsible
for arranging waste management for thetransmission lines.

In 2022, we verified that our procedures
comply with the renewed waste legislation, which entailed changes in thesorting regulations at worksites as wellas in the requirements concerning waste
accounting and transfer documents. The
total volume of waste during the year wasapproximately 12,000 tonnes, of whichhazardous waste made up roughly 700
tonnes. Of the resulting material, 82%
was recycled and 99% was utilised insome way.

REPORT OF THE BOARD OF DIRECTORS

2022

2021

2020

12,0008,900

10,800hazardous waste, tonnes

700

900

900

ordinary waste, tonnes

11,300

8,000

9,900

9,800

7,000

6,700

700

900

3,200

1,400

900

400

final disposal, tonnes

70

80

600

recycling rate, %

82

78

62

utilisation rate, %

99

99

95

total waste volume, tonnes
by type of waste:by disposal method:
recycling and reuse, tonnes
other utilisation, tonnes
combustion in a power plant, tonnes”

Materials to be decommissioned andwaste are recycled as efficiently as possible when building new grid sections or
dismantling old structures. In addition tocareful sorting, our goal is to continuously improve logistics related to materialtransports and to develop investment
project processes so that, for example,
the concrete and brick being demolished
is utilised increasingly in earthworks at
the site.

BUSINESS REVIEW

Total volume of waste by type anddisposal method

The efficiency of the main grid
maintenance management
is boosted through digitalcondition monitoring, which
produces up-to-date datafrom the substations.

FINANCIAL STATEMENTS

GOVERNANCE

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ANNUAL REPORT 2022

Protection of nature values and biodiversity and impacts on land
use and scenic values
Responsibility
visionShort-termtarget 2025

Long-term
target 2035

Corporate
responsibility
viewpoint andUN’s SDG

Reducing negative
impacts on natureand improving biodiversity

Successful EIA processes
which take into accountnatural diversity andtraditional rural biotopes

Fingrid’s transmission line
right-of-ways are utilised
extensively for projects
supporting biodiversity

Environment
Protection ofnature values
and biodiversity

Developing clearing
practices andcooperation withlandowners andenvironmental NGOs
has improved
biodiversity intransmission line rightof-ways

Technical solutions havesignificantly improved themain grid’s transmission
capacity, reducing theneed to construct newtransmission lines

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility

Case

Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Technical solutions (suchas DLR and dynamic
shunt compensation)
have increased thetransmission capacityof the existing grid

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORS

Biodegradable ester oil fortransformers
A high-voltage grid transformer can contain as muchas 100 tonnes of mineral oil
used as an insulating andcooling medium. Transformer oils involve a minor, but
potentially serious risk of atransformer fire. The latest
transformer fire in the main
grid occurred in the 1980s.
The heat, smoke, potential
oil leaks and the oily extinguishing water resulting
from a fire pose a risk to theenvironment, safety, and toelectricity transmission.

Specialist Jenni-Julia Saikkonen: “Ester
oil has been used in equipment operating at a lower voltage, but there is
globally very little experience from use
in high-voltage equipment. This calls forpioneering work, which is what Fingrid is

The environmental risk canbe reduced by replacing conventional oils with biodegradable ester oil. The flash pointof ester oil is higher than thatof mineral oil, which makes itpractically non-combustible.
Ester oil is also expected toincrease the service life oftransformers and makes it

FINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORT

now doing.”

possible to load the transformer at a higher power level.
Natural ester oil solidifies incold air, however, limiting its
usefulness. Synthetic esters
made from petrochemical
by-products do not have thissolidification problem.

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responsibility

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Fingrid’s goal is to be a forerunner ingrid life cycle management. Land use
and environmental impacts are incorporated in planning, construction, use
and maintenance operations and whendismantling old grid structures. The goal
is to complete grid investment projects
and maintenance without any significant
environmental deviations.
No significant environmental damage
took place in Fingrid’s operations in 2022.
During the year, Fingrid procured the firstester-oil-insulated substation equipment
for the Kontiolahti substation, which islocated on a ground water deposit, anda transformer with ester oil insulation for
the new Hepokorpi substation in Espoo.
Replacing mineral oil with non-poisonousand biodegradable ester oil can enhance
the management of environmental risks
at electrical substations.
We require commitments in landowner
engagement, respect of site-specificenvironmental values and proper waste
and chemical handling from external grid
maintenance contractors and service
providers by means of contractual terms,
environmental training and audits. All
personnel working at Fingrid’s worksites

BUSINESS REVIEW

complete online training on environmental matters. Service providers receive
environmental training when investment
projects are started, and environmental
aspects are monitored on-site as part ofworksite monitoring.
Fingrid is actively mitigating the harmfulenvironmental impacts of its activities
and encourages landowners to make safeuse of transmission line right-of-ways forthe benefit of people and nature alike.
Transmission line right-of-ways alsooffer an opportunity to promote biodiversity. The right-of-ways are kept open
and exposed to direct sunlight throughregular clearing, and they can replace
the habitats of species threatened bydisappearing meadows or the drainageof peatlands.
The ecological impacts and the possibility to mitigate them are assessed in
major transmission line projects throughan environmental impact assessment
procedure (EIA) required by law. For projects with minor impacts, this is done bymeans of an environmental study. Using
this assessment data, we can mitigate
impacts and ensure the preservationof valuable locations during the further

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

planning and construction of the project.
We also instruct the service providers
working in maintenance and vegetation
clearing on existing transmission lines
to take known valuable flora, fauna or
habitats into account and to take propercare of waste and chemicals.
Fingrid’s objective is to increase andrestore traditional rural biotopes and toencourage landowners to maintain andprotect the scenic and nature values oftransmission line right-of-ways. Throughactive management, transmission line
right-of-ways can be developed into traditional rural biotopes, which are valuable
in terms of both biodiversity and scenic
values. These environments include
meadows and pastures shaped by traditional agriculture, which have developed
a unique and rich fauna and flora as aresult of centuries of grazing and mowing.
They include both built landscapes andtraditional rural biotopes created throughreaping and grazing.
Due to changes in agriculture, traditional rural biotopes have fallen into disuse,
which is why they are disappearing. Overgrowth, eutrophication and afforestation
are the greatest threat to these areas.

GOVERNANCE

REMUNERATION REPORT

Fingrid offers financial support for maintaining transmission line right-of-ways as
traditional rural biotopes in the form of
initial funding and a maintenance plan.
Overall, the company offers information
on utilising transmission line right-ofways in the form of guidelines for landplanners and idea cards intended forlandowners.
In 2022, Fingrid increased its financial
support for maintaining power line rightof-ways as traditional rural biotopes. To
secure the continuity of care, existing
beneficiaries can now also re-apply forcontinued support after the funding period has ended. Furthermore, we started
a study on shorter clearing cycles at dedicated sites for promoting biodiversity.
Fingrid is aware of its responsibility instopping the spread of invasive species in
its operations. In 2022, we fine-tuned our
procedures and guidance for combatting
harmful invasive plant species by arranging training events for substation suppliers and by communicating on the issue
to the right-of-way clearing contractors.

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Case

Case

First Finnish sighting in a transmission line right-of-way
Exceptional news made the rounds
among Finnish entomologists insummer 2022: a waisted beegrabber(Physocephala rufipes) was found ina patch of grasses of the honeysuckle
family under a transmission line in Imatra. Closer examination detected several individuals of the species, which
may mean that this was not a one-off
occurrence. Normally a more southern
species, the waisted beegrabber hasapparently spread to Finland as a result of the warming climate.

Clearing increases safety
Managing the vegetation near transmission
lines ensures electrical safety and transmission reliability. Regular clearing also
helps to maintain the open habitats vital for
certain animal and plant species.

The open areas and short undergrowthin the transmission line right-of-way
offer a suitable habitat for this fly
species. Through active management,
some of the transmission line right-ofways can be developed into traditional
rural biotopes, which are valuable interms of both biodiversity and scenic
values.

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORS

Clearing and tree removals make sure thattrees do not encroach on transmission lines
or fall onto them, which could cause electricity distribution disturbances or personal
injury. Particularly in the yard areas close
to people’s houses, electrical safety takes
precedence over transmission reliability.
The average clearing cycle is five to eight
years, but shorter intervals may be necessary in built-up areas, for example. Most
clearing work is performed manually, withclearing saws. Landowners receive advance
notification of clearing work.
Fingrid welcomes feedback on vegetation management via an online feedback
system, which also offers information onplanned clearing and tree removal sites.

FINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORTCORPORATE RESPONSIBILITY

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responsibility

32

ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Environmental impact assessments
The massive grid investment programme
is directly reflected in the number ofnecessary environmental impact assessments (EIA). The major grid transmission
line projects are inherently significant interms of climate change mitigation. EIAs
have also begun to take climate impacts
into account in a new way. In addition toclimate change mitigation, an important
issue is adapting to climate change. As
a company critical for national securityof supply, Fingrid ensures the continuity of its operations through good risk
management, including adaptation to achanging climate.
As a result of the energy transformationand the green transition, several grid projects designed to strengthen the main gridwere in the planning stage at Fingrid in
2022. Environmental studies were drawn
up to take into account environmental
impacts in transmission line projects
with less extensive impacts in Iisalmi andNurmijärvi. Environmental issues werealso incorporated into the location planning for numerous new substations. The
environmental impacts of transmission
line projects with significant impacts arestudied using a statutory environmental impact assessment (EIA). The goal

BUSINESS REVIEW

is to involve environmental impacts at
the earliest possible stage of planningand decision-making, alongside financial
and technical standpoints. Through the
EIA procedure, landowners and otherstakeholders receive information and
can impact the project. Involving theseparties is very important in terms of ensuring that the transmission line adapts
to the environment, taking into accountvarious perspectives and stakeholders.
In 2022, the Finnish association for promoting EIAs (Yva ry) awarded its ‘Good
EIA’ prize (Hyvä YVA) to Fingrid in recognition for the excellent EIA implementationin connection with the Lake Line project.
This was the third time Fingrid received
the EIA prize. The EIA authority issued areasoned conclusion on the Rovaniemi–
Vaala transmission line project. An EIA
report was completed for two extensive
transmission line projects, from Jylkkä
in Kalajoki to Alajärvi, and from Alajärvi
to Hikiä in Hausjärvi. Furthermore, theEIA procedure was started for a new longtransmission line, from Kristiinankaupunki to Nokia. In each EIA procedure,
we continued to inform local residents
beyond statutory practices through letters to landowners and, when necessary,with local newspaper ads supporting the

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

official communication. Several public EIA
events were arranged online, and theyreached a large audience. The feedback
received testifies that also webinars canbe an informative and welcoming platform for public events. As an example,
roughly 990 landowner letters wereposted during the EIA stage of the Kristiinankaupunki–Nokia transmission line
project, and the public webinar gatheredan audience of around 300 participants.
A record of the event was also uploadedfor viewing afterwards.
Fingrid complies with the national land
use goals in its objective to use existingtransmission line routes for its transmission line projects, which aims at reducing
both the new land area taken up by thetransmission lines and the environmental
impacts. Of the approximately 500 new
transmission line kilometres taken into
use in 2022, some 98% utilised existingtransmission line routes, while around
2% were located in entirely new terrain.
This goal is not without its challenges,
however. For example, the Lake Linetransmission line project, which largely
relies on existing transmission line routes,
received an exemption in compliance withnature conservation legislation from theobligation to protect flying squirrels and

GOVERNANCE

REMUNERATION REPORT”

Fingrid received
the ‘Good EIA’award for theLake Line project.

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

an amendment to conservation regulations on private land. An application concerning an amendment to the decree on
a conservation area on state-owned land
was under consideration. Furthermore,
an application for the Ii–Oulu transmission line project on downgrading some of
the conservation regulations in a private
conservation area was under consideration. A permit to disturb an ancient relic
was required from the Finnish Heritage
Agency for the expansion of the Jylkkä
substation.
In addition to new investments, Fingrid
aims to adopt solutions that will increase
the transmission capacity of the existing main grid. In 2022, the Dynamic Line
Rating (DLR) method was taken into
operational use on the long 400-kilovolt
north–south transmission lines, and two
new shunt compensation substations
started up on the Forest Line. A decision
was additionally made to implement shuntcompensation to increase the capacity
through cross-section Central Finland.

Case
Backlog in EIA projects
The purpose of the environmental impact
assessment procedure is to reduce or entirely prevent large landscaping projects
from harming the environment.
There is currently a backlog in EIA projects.
Indeed, the entire EIA administration isexperiencing backlogs at the moment. Thishas been sparked by a boom in wind power
all over Finland, with dozens of projects
that are in the embryonic stage, undergoingplanning, or already in progress.
An average EIA takes over a year, butsometimes even longer. However, the EIA
backlog has so far not delayed any of Fingrid’s projects. Good advance planning is
the key to ensuring that the assessment iscarried out on schedule.
Any person affected by a project may participate in the EIA, so information must be
shared with all stakeholders, and everyone
must have the opportunity to participate.
Some of the public EIA info events arenowadays arranged online. They havereceived positive feedback and show that
also a webinar can be an informative andwelcoming platform for public events.

“We now have grid development and investment plans extending to 2030, which gives
us a good early start also for the EIA procedures,” says Mika Penttilä, head of Fingrid’s
land use and environmental unit.

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GOVERNANCE

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responsibility

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ANNUAL REPORT 2022

Fingrid’s environmental responsibility indicators

Environmental responsibility: target indicators, target levels and results
CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT

Indicator
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governance

Description

Environmental target indicators andtarget levels

2021–2025

Target monitoring: how we did in 2022

UN’s
SDG

System security

Transmission reliability inthe grid, %99.9995%

99.99993% transmission reliability on the grid

Well-functioning markets

Maintaining Finland as asingle price area

yes

Finland only had one electricity wholesale market price area

Connecting emission-free production

Connection of wind power
to the grid, MW+5,000 MW

Around 770 megawatts worth of connection agreements were concluded in 2022.
Unfinished permit processes limited the number of connection agreements Fingrid
was able to conclude.

Third AC connection to Sweden

Project’s degree ofcompletion, %100% in 2025

Target for completion unchanged. The procurements for the first stage are completed,and the worksites and deliveries from factories have started. The investment decisionon the second stage has been made.

North–South transmission: Forest Line

Project’s degree ofcompletion, %100% in 2022

The project was completed on schedule in autumn 2022.

North–South transmission: Lake Line II

Project’s degree ofcompletion, %60% in 2025

The target for completion in 2026 unchanged. General planning was completed, andthe expropriation permit application was submitted.

All markets in 15-minute periods

Project’s degree ofcompletion, %100% in 2025

The 15-minute imbalance settlement period will be adopted in May 2023, after which
it will be possible to trade in 15-minute products on the intraday markets within
Finland. The other aspects of the 15-minute market rollout on various marketplaces
will be postponed.

Corporate responsibility GRI
and SASB disclosures

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORTCORPORATE RESPONSIBILITY

Environmental
responsibility

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ANNUAL REPORT 2022

Indicator

Description

2021–2025
UN's
SDG

Environmental target indicators and target levels
CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

Target monitoring: how we did in 2022

SF6 emissions%, emissions/volume

0�1%

SF6 emission leakage rate was 0�06%

Transmission losses, CO2 emissions

tCO2e

According to
Finland’s goals

Transmission loss emissions were 96,000 tCO2e. The 2025 target is 84,000 tCO2e.

Energy efficiency

Energy savings, MWh

181,000 MWh

The measures carried out in 2022 saved 90,000 megawatt hours and altogether
182,000 megawatt hours have been saved during the entire agreement period.

Recycling of materials

Recycling rate, %90%

The recycling rate was 82%

Utilisation rate of materials

Utilisation rate, %98%

The utilisation rate was 99%.

Measures to reduce the environmental
impact of office work

quantity+1

A theme day was arranged to support personnel’s environmental awareness.
Environmental aspects were emphasized when procuring office supplies and businessgifts. Chemical-free cleaning was introduced at head office.

Completed biodiversity improving
projects

quantity+1

A study was started on shortening clearing cycles at dedicated sites to promotebiodiversity; increased support for the management of traditional rural biotopes.

Utilising existing transmission line
routesUtilisation rate (fornew transmission line
kilometres)

90%

Utilisation rate was more than 98%. Of the approximately 500 new transmission line
kilometres taken into use in 2022, approx. 2% were located in entirely new terrain.

Positive environmental impacts oftechnical solutions

Number of adopted
solutions increasing thetransmission capacity ofthe existing grid

+1

The Dynamic Line Rating (DLR) method was taken into operational use on the long
400-kilovolt north–south transmission lines, and two new shunt compensation
substations started up on the Forest Line. It was additionally decided to implement
shunt compensation to increase the capacity through cross-section Central Finland.

Environmental deviations

Number of significant
deviations

0

No significant deviations detected

Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORTCORPORATE RESPONSIBILITY

Environmental
responsibility

36

ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

03
Social responsibility

Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Our role as transmission system operator
in charge of the national power systemmeans that our operations impact many
stakeholders and society as a whole. The
aim is to keep transmission tariffs affordable and boost Finland’s competitiveness.
The operations are based on the valuesof openness, fairness, efficiency andresponsibility. Close long-term customer and stakeholder collaboration helps
promote the goal of a carbon neutral Finland by 2035. Our operations are basedon skilled personnel who recognise theimportance of their work for customers,
the company and the whole of society.

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORTCORPORATE RESPONSIBILITY

Socialresponsibility

37

Personnel
ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility

Responsibility
visionShort-termtarget 2025

Long-term
target 2035

Corporate
responsibility
viewpoint andUN’s SDG

An open,collaborative,
renewing andhigh-performing
work community

Personnel survey’s top
result compared to otherspecialist organisations

Fingrid’s workcommunity is
productive, healthy
and evolving, and has
a diverse personnel
structure

Socialresponsibility
Personnel

Social responsibility

Leadership: Fingrid among
Finland’s best workplaces
Healthy and happy
personnel: low absences
due to illness, nopremature retirement

Good governanceCorporate responsibility GRI
and SASB disclosures

Diverse work community:
different educational andethnic backgrounds, moreeven gender distribution,even age distribution

Fingrid’s basic task is to secure the supplyof electricity for our customers and society cost-effectively, and to help shape theclean, market-oriented power system of
the future. Our work to mitigate climatechange and our daily task of promoting
the security of the power system are relevant. Fingrid’s personnel are well awareof this and strive to carry out their work
responsibly and with care.

BUSINESS REVIEW

Case

We are a wellknown and attractive
workplace, whose
supervisory work andleadership practices
are second to none

In 2022, Fingrid again participated in
Oikotie’s survey on responsible employer
practices, and this time we came secondin the ranking. Fingrid has been involvedin the Responsible Employer survey since
it was started and scored the first place inthe large companies series twice in a row.
Second place in 2022 was a good result,as our responsibility index had alreadyreached 4.3 on a scale from 1 to 5.

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

More than 60 summer employees
propped up the Fingrid teamFor permanent Fingrid employees,
summer traditionally also means many
new faces. In the summer of 2022, we
hired a total of 64 summer employees
as part of our commitment to the“Responsible Summer Job” campaign.
The summer recruits propped up Fingrid’s staffing in a vital way over thesummer months.
Fingrid aims to offer young people
successful and high-quality summer
job experiences. It is important for
us that our young colleagues feel
welcome in their summer jobs andhave opportunities to apply their

REMUNERATION REPORT

skills. According to their feedback,Fingrid’s strength and resource is its
company culture, which the summer
employees experienced as good teamspirit throughout the company, equal
treatment and a sense of community.
On the other hand, there is room for
improvement in the meaningfulness ofwork tasks, as many people would liketo have more challenging tasks.
Another sign of a successful summer
job experience is the fact that many of
our summer employees want to comeback next summer. Indeed, several
members of our permanent staff started as summer employees and went on
to do their thesis projects with Fingrid
or stayed on for a longer period.

CORPORATE RESPONSIBILITY

Socialresponsibility

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

The Responsible Employer survey looked
into the image of the employer’s responsibility in six different topics: non-discrimination, flexibility and work-life balance,
investing in managerial work, content andrelevance of work, pay and remuneration,
and applicant experience. The responses
from Fingrid employees highlighted areas such as the relevance of work, good
applicant experience and investing inmanagerial work. Nearly all the surveyed
employees would recommend Fingrid as
an employer to their friends and family.
This was no surprise, as Fingrid received
an excellent eNPS score, 72, in our latest
personnel survey.
Fingrid also came third in 2022 Great
Place to Work survey’s list of large Finnish companies. Third place in this list is atestimony to Fingrid’s long-term efforts
in areas such as developing managerial
work. On the previous Great Place toWork list, Fingrid was seventh.
According to the Great Place to Worksurvey results, Fingrid’s outstanding
characteristics as an employer are cooperation and team spirit, employee engagement, and the experience of being
able to influence one’s own work andparticipate in decision-making. Fingrid
employees are also proud of their work

BUSINESS REVIEW

and feel it is meaningful. The responses
additionally highlighted the atmosphereat work, the employer’s role in society
and flexible working hours.
Know-how and healthy, happy personnel
In compliance with our employer promise,
Fingrid is a community of experts thatmaintains and safeguards Finland’s electricity system and in this way promotes awell-functioning society as a whole. We
are building a new type of carbon-neutral
power system in Finland. Our work community is open and supportive, and offers
excellent possibilities for personal development and further training. We promisethat Fingrid will remain one of Finland’s
best places to work going forward.
Our promise to keep the company as oneof Finland’s best workplaces also means
a commitment to take care of our employees. We support the overall well-being of
our employees and maintain a good work
atmosphere and style of management,
we take into account the needs of individuals, and support personnel’s recreational
activities and life-long learning.
Fingrid surveyed the well-being of its
employees in 2022 with a PeoplePower
employee experience survey. The survey

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

gauges staff engagement: commitment,
leadership and performance. These aspects are cross-lit with the experiencefrom one’s own, immediate work community as well as the entire organisation. According to the results, Fingrid’s strengths
include the atmosphere at work, trust in
the employer and commitment. Fingrid
again achieved the excellent AAA PeoplePower rating, with an index of 83.4
on a scale from 1 to 100. Only around six
per cent of all the surveyed organisations
annually achieve the highest AAA rating
category. Our result clearly exceeds theaverage level of Finnish peer companies
employing largely specialist professionals.
A good workplace is a value that the management chooses, and its creation can beboosted through management practices.
Supervisors are encouraged to communicate actively, to involve the teams in decision-making and to reward good performance. A managerial position is not the only
way for personnel to advance in their career,
and the company has created a separate
specialist career path towards this end.
Overall, we encourage everyone to develop
and expand their expertise. We offer eachspecialist the possibility for flexibility andfreedom in their work. This freedom also
involves accountability and responsibility
for one’s work and personal development.

GOVERNANCE

REMUNERATION REPORTNet Promoter Score from
customers (cNPS)
Detractors 4 %Neutral
19 %722021: 67

Promoters 77 %Average eNPS in Finnish specialist
organisations = 37 (source: EezyFlow)

A good workplace is a value that the
management chooses, and its creation
can be boosted through management
practices. Supervisors are encouraged
to communicate actively, to involve theteams in decision-making and to reward
good performance. A managerial position is not the only way for personnel toadvance in their career, and the company
has created a separate specialist career
path towards this end. Overall, we encourage everyone to develop and expand
their expertise. We offer each specialist
the possibility for flexibility and freedom

CORPORATE RESPONSIBILITY

Socialresponsibility

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosuresin their work. This freedom also involves
accountability and responsibility for one’s
work and personal development.
Our management system and HR policy are described in more detail in theBusiness Review. From a corporate responsibility perspective, a material partof our HR policy is our organisation’s flat
hierarchy and the opportunity that each
person has to impact the planning andperformance of their work.
Fingrid takes care of staff well-being andability to cope at work through comprehensive well-being services and activities.
We focus on preventive occupational
healthcare by preventing illnesses before
they occur. This involves measures suchas health check-ups and advice on healthy
habits. Fingrid’s employees have accessto a wide range of comprehensive occupational healthcare and well-being services
that aim to support their work capacity
and well-being, regardless of the location.
The occupational healthcare agreement
and action plan are available to personnel on the company’s intranet. Fingrid’s
occupational healthcare agreement also
covers an extensive array of doctor’s andhealthcare services unrelated to work.
These include general practitioner’s ap-

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORS

Case
Courageous supervisor coaches and inspires
Finland’s TSO Fingrid focuses on courageous leadership, leaning heavily on openness and interaction. Fingrid is a specialist
organisation where the ways of working
are largely based on the expertise of eachindividual employee.
Fingrid uses the phrase ‘the CEO of one’s
own work’, which means everyone has theirown goals and is responsible for achieving
them, on both the individual and organisational level. This requires well-functioning
interaction and open sharing of knowledge.
Being one’s own CEO also means that weneed to understand the significance of ourown work in a broad sense, for the customer
and for society at large. Even though people
work independently, ‘being one’s own CEO’does not mean doing everything alone.
Fingrid has an open, fair and responsible
corporate culture, where respecting col-FINANCIAL STATEMENTS

GOVERNANCE

Mervi Marttila, Manager of Finance and Ana-

leagues is a must. In a model based ontrust, the results of the work matter
more than micromanaging working
hours. The focus of managerial work
is rather on the follow-up of goals andunderstanding customer needs. Responsibility also includes taking careof the employees’ well-being and resilience. This is reflected in the substantial reduction in overtime, for example.

REMUNERATION REPORT

lytics: “For me, the Fingrid spirit means trust,
respecting one another. We have genuine andresponsible people. High quality is evident
in our work.” The interview of Mervi Marttila
is part of Oikotie’s Responsible Employer
campaign.

CORPORATE RESPONSIBILITY

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CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosurespointments, appointments with specialists based on an occupational healthcare
physician’s referral, physical therapist andpsychologist services, and various minor
operations or examinations. In addition
to statutory insurances, Fingrid offers its
personnel group insurance for off-working hours, which also covers accidents
occurring during leisure.

GENDER DISTRIBUTION*
BY EMPLOYEE GROUP

Occupational healthcare costs before
the reimbursements from the publichealth system (Kela) were EUR 366,969(323,335) for the entire personnel. The
number of absences due to illness has
been remarkably low for many years now,with the percentage of absences due toillnesses at 1.5 in 2022 for the entire personnel. The high age of retirement (65in 2022, 2021 and 2020) and the lowest
possible disability pension contribution
category bear further testimony to thewell-being of our employees.

and tolerant. Fingrid treats its employees and all cooperation partners in a
non-discriminatory way regardless of
their age, gender, nationality, ethnic origin, language, beliefs, religion, health,sexual orientation, political background,socioeconomic status or marital status.

Diverse work community
Fingrid is committed to promoting diversity in everything it does. The company
guarantees equal opportunities, rights
and treatment to all employees and makes
use of its personnel’s diverse expertise. In
accordance with our HR policy, we havea collaborative atmosphere where theorganisational culture and management
practices are universally respectful, fair

BUSINESS REVIEW

Men

2022

Women

Men

2021

Women

Men

2020

Women

Board of Directors

2 (50 %)

2 (50 %)

3 (60 %)

2 (40 %)

3 (60 %)

2 (40 %)

Executive management

6 (66 %)

3 (33 %)

6 (66 %)

3 (33 %)

6 (66 %)

3 (33 %)

Senior salaried employees

324 (77 %)

95 (23 %)

294 (77 %)

87 (23 %)

274 (80 %)70 (20 %)

1 (10 %)

9 (90 %)

1 (10 %)

9 (90 %)

1 (10 %)

9 (90 %)

Salaried employees* The Board of Directors and personnel groups reported by gender and age distribution of permanent personnel (quantity).

Our personnel includes both recent graduates and long-standing industry veterans.
The age range of our permanent staff isfrom 25 to 69. In terms of education, ourpersonnel mostly hold tertiary education
degrees, ranging from vocational degrees
to PhDs. While regrettable but typicalof our industry, women make up only asmall proportion of personnel. We hope
to attract more women to the technology
sector, which is why we have been involvedin the Women-in-Tech campaign for several years. Of the executive management
group, 3 out of 9 are women and of theBoard of Directors 2 out of 4 are women.

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

2022

2021

2020

Under 29 yrs.

47

43

30

30–39 yrs.

137

119

106

40–49 yrs.

130

117

109

50–59 yrs.

89

83

83

60–69 yrs.

36

38

35

Average age

43

44

44

AGE DISTRIBUTION
OF PERMANENTPERSONNEL*

TYPES OF EMPLOYMENT

2022

2021

2020

New permanent employment
contracts

61

40

27

Number of expired employment
contracts, incl. retired employees

28

13

10

Retired7

3

4

Average retirement age

65

65

65

Average length of employment
in years*

9

10

11

Number of persons maderedundant000Incoming turnover rate

13,9

10 %

7,4 %

Outgoing turnover rate

6,4

3,3 %

2,8 %

Incoming and outgoing turnover rates not reported by age group and gender. The reportaccounts for absolute values; percentage rates not reported due to a low turnover rate.
* Fingrid was established in 1996 and its operations started in 1997. The previous company’s
personnel were transferred to the company as serving employees.

GOVERNANCE

REMUNERATION REPORTCORPORATE RESPONSIBILITY

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

2022
No. ofpeople2021
No. ofpeople2020
No. ofpeopleUnder 29 yrs.

9

12

8

30–39 yrs.

32

16

9

40–49 yrs.

15

8

8

50–59 yrs.

5

4

2

60–69 yrs.

0

0

0

NEW, PERMANENT EMPLOYMENT CONTRACTS,
BY AGE GROUP

2022
No. ofpeople2021
No. ofpeople2020
No. ofpeopleUnder 29 yrs.

5

0

0

Good governance

30–39 yrs.

7

5

4

Corporate responsibility GRI
and SASB disclosures

40–49 yrs.

6

3

1

50–59 yrs.

3

1

0

60–69 yrs.

7

4

5

Percentage of employees retiring within the next 5 years, %:7

Percentage of employees retiring within the next 10 years, %:17

Environmental responsibility
Social responsibility

EXPIRED PERMANENT EMPLOYMENTCONTRACTS, BY AGE GROUP

The estimate is based on the lowest possible retirement age
for old-age pension according to the statutory pension system.
EMPLOYMENT IMPACT. PERSONNEL AND SERVICE PROVIDERS, MAN-YEARS
2022

2021

2020

Man-years, Fingrid’s personnel*

447

391

355

Man-years, service providers**

642

703

492

1 089

1094

847

Man-years total* As of 2022, man-years also include Fingrid Datahub Oy.
**Reporting covers the service providers’ work hours included in Fingrid’s internalmonitoring. In 2022, grid building and maintenance operations amounted to roughly
1,092,000 work hours, equalling 642 man-years

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

The company’s current status in equal
opportunity and non-discrimination issues is monitored annually during the HR
reporting process. The surveys include
various methods and channels, such as
workplace atmosphere questionnaires,
equal opportunity studies as well as feedback from management, supervisors andall employees.
Relationship between the personnel and the employer
The cooperation between the company
and personnel is a natural part of developing the work community at Fingrid:
personnel are involved in decision-making
and their opinions are heard. The statutory
cooperation bodies are the cooperationand dialogue meeting and the occupational health and safety committee. Fingrid
respects its personnel’s freedom of association and right to collective bargaining.
The cooperation and dialogue meeting
discusses personnel issues extensively.
Personnel are represented at the meeting by the shop stewards elected by thesenior salaried employees and salaried
employees. The company’s representatives at the meeting are the President& CEO, the Senior Vice President, HR
and the HR Manager. Regular interaction
ensures that the personnel is aware of

GOVERNANCE

REMUNERATION REPORT

the company’s activities and any current
issues impacting the activities. The joint
meeting was held four times during theyear under review. The issues discussed
included pay studies, the company’s equal
opportunity and non-discrimination plan,
and local agreements.
Statutory OHS matters are handled by
the company’s OHS committee, which
includes elected personnel representatives. The employer’s representative in
the OHS committee is the OHS Manager
appointed by the company.
The cooperation between the employer
and personnel is further promoted in
the steering group of the Personnel &Expertise perspective, which has representatives from the company’s various
functions that have been appointed by
the executive management group. The
steering group especially prepares matters related to the development of thepersonnel for the executive management
group to decide on. Fingrid’s SVP, HR andCommunications is in charge of the personnel steering group’s work and results.
During the year under review, the group
discussed topics such as personnel surveys, pay transparency and recruitment
development. The Personnel & Expertise
steering group convened six times.

CORPORATE RESPONSIBILITY

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Fair remuneration
The goal for Fingrid’s compensation andremuneration is to encourage our personnel to work productively and develop ouroperations. The pay level and its development are kept competitive comparedto the pay level in the energy sector. The
compensation, remuneration and other
employment terms are fair, non-discriminatory and sufficiently transparent intheir justifications.
The transparency of pay data was increased by publishing key results of theFinnish Energy Industries’ and Mercer’s
pay surveys on the intranet. The key results of both surveys were also reviewed
jointly with the personnel representatives.
Personnel salaries comprise the basic
salary determined according to the content of the task, competence, experienceand results, an annual quality bonus thatencourages the effective implementationof the strategy, and an incentive bonus to
support personal performance. The company reserves two per cent of the payroll
for incentive bonuses each year, and they
are paid for good performance as part ofthe daily management of personal performance. Remuneration is supplemented
by other benefits and worktime flexibility
organised by the company.

BUSINESS REVIEWResults which form the basis of quality
bonuses are measured using company-level strategic criteria defined annuallyand criteria based on personal performance. In 2022, the shared indicators
determined 60 per cent of the merit pay
result, in addition to which each person
had a personal performance indicatorwith a 40 per cent weight.
The CEO-to-employee annual medianincome ratio in 2022 was 7:1, and thefemale-to-male annual median income
ratio was 0.9:1. In terms of percentages,
the CEO-to-employee annual medianincome ratio in 2022 was 0.05:1.

”

While not aiming to
be a wage leader,
Fingrid keeps its
salaries competitive.

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

Case
Monitoring ICT around the clock,year-roundFingrid established an ICT control
centre to support the company’s
core operations at the main grid
control centre in 2022. In early
2023, the ICT control centre operates 24 hours a day, helping tosecure the functionality of Finland’s
power system.
The ICT control centre’s main tasks
include maintaining the ICT systems
and information exchange systems
necessary for the critical businessprocesses, maintaining the situational awareness in terms of ICT aswell as forecasting any malfunctions, and starting and coordinating
repair work. The control centre will
also coordinate any preplannedchanges to the ICT systems to avoid
unnecessary malfunction reports or
actual malfunctions.

REMUNERATION REPORTICT Manager Teemu Salo: “The ICT control
centre will improve Fingrid’s disturbanceresilience. This will help both us and our customers. Disturbances will be shorter and someof them can be avoided altogether.”Establishing the ICT control centre
was decided on in cooperation withpersonnel representatives, and a local
agreement was drawn up on the terms
and conditions of the employees.

CORPORATE RESPONSIBILITY

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43

Economy – society
ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Responsibility vision

Short-termtarget 2025

Long-term
target 2035

Corporate
responsibility
viewpoint andUN’s SDG

Owner of criticalinfrastructure anda major investor in
Finland.

Implementation of asignificant maintenanceand investment
programme, which
benefits the wholeof society

Implementation of asignificant maintenanceand investment
programme, which
benefits the whole ofsocietySocialresponsibility
Economy –society

The employment
impact of investments
and maintenance on
Increasing the amountcooperation partnersof green financing inand local communities. the company’s
financing arrangements

Increasing the amountof green financing in
the company’s financing
arrangements

Paying taxes without
special arrangements
A responsible
taxpayer.

BUSINESS REVIEW

Fingrid continuously
improves its efficiency
and productivity, andpromotes Finland’scompetitiveness

Paying taxes without
special arrangements
Fingrid continuously
improves its efficiency
and productivity, andpromotes Finland’scompetitiveness

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

In our societally important basic task,
and as a natural monopoly, sustainable
and responsible finances are important.
The goals for Fingrid’s financial steering
include well balanced corporate finances,cost-effectiveness, responsible operations, high operational reliability, company-level risk management, creation ofshareholder value in a regulated businessenvironment, and a high credit rating.
Among the company’s key financial goals
is to be among the most cost-effective
TSOs in Europe and to keep services
competitive in terms of pricing. Basedon the most recent comparison of transmission system operators, Fingrid’s grid
prices are the second lowest in Europe.
Developing the main grid cost-effectively
and maintaining high operational reliability, including quality, timeliness and operational costs, will keep Finland competitive
and attract investments involving thegeneration and consumption of electricity. Fingrid’s goal is to maintain a strong
grid and well functioning market models
so that Finland can remain a single pricearea for electricity even in the future.
This means that the wholesale price ofelectricity is the same throughout Finland, which will help enable investments
involving electricity generation and con-

GOVERNANCE

REMUNERATION REPORT

sumption everywhere in the country and,more specifically, in locations where theinvestments can be accomplished mosteffectively to meet customers’ needs.
The starting points for Fingrid’s investments include the needs of society
and the customers, developments on
the European internal market in electricity, securing the preconditions forthe company’s business operations,and the targets set by the owners. The
company’s Board of Directors decides
annually on a budget that includes thecompany’s key investment projects andmajor commitments for the coming years.
The investments must be cost-effective
and financially profitable. As part of its
approval decisions for individual investments, the company’s Board of Directors
also assesses the investment’s climate,corporate responsibility and risk impacts.
The long-term planning of the main
grid and the related investment andmaintenance programme support theimplementation of the national climate
and energy strategy, maintain systemsecurity, increase transmission capacity, and promote the electricity market.
In addition, the company’s sustainablefinancial position is secured.

CORPORATE RESPONSIBILITY

Socialresponsibility

44

ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

The guiding principle for Fingrid’s dividend
policy is to distribute substantially all of
the parent company profit as dividends.
When making the decision, however,
the economic conditions, the company’s
near-term investment and development
needs, as well as any prevailing financial
steering targets are always taken into account. The company’s dividends are paid
entirely to Finland; mainly to the state and
to Finnish pension and insurance companies. In 2022, we paid approximately
EUR 133 million in dividends for the 2021
financial year.

Fingrid operates on a national scale andinvests throughout Finland, buying gridconstruction and maintenance services
from external service providers. This way,
our employment impacts are spread out
across an extensive area. In addition, we
innovate together with different players,
including start-up companies, to create
opportunities for new commercial business on the infrastructure platform built
up by the company. Fingrid’s objective
is not to create new business for itself;
its goal is the creation of technology,
operating models and low service costs
resulting from innovations.

Generation of economic value
Fingrid’s profits are channelled to theservice and equipment suppliers, electricity market parties, personnel’s payroll,
payments to financers, taxes and, finally, to the Finnish owners, in the form of
dividends.
Fingrid is a major investor in Finland.
Over the next 10 years, we will invest
some three billion euros in grid networks
and substations for the main grid andthe supporting systems. This will ensure
a well-functioning electricity market andthe transition to a clean power system.

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORTCORPORATE RESPONSIBILITY

Socialresponsibility

45

DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED, €1,000
Income from customers
Turnover
Other operating income
Profit from changes

ANNUAL REPORT 2022

in the fair value of derivatives
Dividend income

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

Income from investments and loans
Total
Payments to service and equipment suppliers and electricity market parties
Purchases, materials and services
Other costs
Changes in fair value
Voluntary additional personnel expenses
and compensation for expenses (excl. training)
Real estate taxes
Contributions

Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Total
Remuneration to personnel
Salaries, remunerations, social security contributions
Voluntary additional personnel expenses and compensation for
expenses (excl. training)
Total
Payments to providers of capital
Dividend*
Finance costs
Total
Payments to government and community investment
Income tax for the financial year
Real estate tax
Contributions and sponsoring

2022

2021

2020

1,815,242
171,387-141,018

1,090,924
64,937-62,267

682,456
5,219-2,830

-115
410

-224
2,904

-547
8,357

852
1,846,759

381
1,096,655

150
692,806

1,508,975
41,330-432-2,039773,553
37,990-66-1,552404,330
35,304175-1,477-440-321,547,362

260-11810,173-453-10
437,869

42,1042,039

37,810
1,552

34,094
1,477

44,14439,36335,571133,037
17,345150,383

133,037
13,972147,009

135,614
13,348148,962

45,340440
3245,81359,05833,522-260
1133,273
66,837

29,722453
1030,18540,219Total
Economic value retained for developing operations* The dividend for 2022 is the Board of Directors’ proposal to the Annual General Meeting.
The reporting on economic impacts does not include Fingrid’s investments, which has been accounted for elsewhere in the annual reporting.

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

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46

CONTRIBUTIONS RECEIVED, €1,000
ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

2022

2021

2020

Tekes (Finnish Funding Agency forTechnology and Innovation)

39

0

0

EU: Horizon 2020 Framework Program

75

79

402

M€
60

National Emergency Supply Agency

0

145

145

60
50

EU: Connecting Europe Facility(CEF Energy) grant

15,703

0

0

Total

15,818224

547

Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Fingrid’s tax footprint
Fingrid’s tax footprint

Taxes 2018–2022

Taxes payable
Taxes
M€ payable

M€

50
40

31

40
30

31

30
20

34

47

300

47

250

34

200

20
10

150

10
0

100

0
-10

50

2020
2021
2022
-10
2020
2021
2022
Income taxes
Unemployment
Income taxes insurance
contributions
Unemployment insuranceSocialsecurity contributions
contributions
Realestatetaxes
Socialsecurity
contributions
Real estate taxes

Tax footprint
Fingrid is a responsible taxpayer. In 2022,
we paid EUR 45 million in income tax.
Our tax rate, i.e. the amount of tax to be
paid on the company’s earnings, corresponds to Finland’s corporate income tax
percentage (20%). In 2021, Fingrid was
Finland’s 26th largest corporate income
tax payer, paying EUR 34 million in income tax. Fingrid annually reports on its
tax footprint and refrains from any special
arrangements to minimise its taxes.

Taxes to be collected and remitted

0

%

25
20

Taxes
M€ to be collected and remitted

15

M€
120

10

98

120
80

98

80
40

5
29

40
0

0

29

0
-40
-40
-80
-80

2018 2019 2020 2021 2022

2020

2021

-54
2022
-54

2020

2021

2022

2018 2019 2020 2021 2022
Profit before taxes, M€
Income taxes, M€
Effective tax rate (%)

Value added tax, net remitted
Electricity
taxtax,(incl.
Value added
netemergencyremitted
preparedness
contribution)
Electricity
tax (incl.
emergencyTax
prepayments
preparedness
contribution)
Tax prepayments
BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

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47

ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility

The table below describes Fingrid’s tax
footprint for 2020–2022. The summary
includes taxes and charges that Fingrid isunder legal obligation to pay or to collect
the tax or payment in question. However,taxes that are included in the purchaseprice of a product or service and which
Fingrid is not under legal obligation to
declare are not included in the summarydata.
The majority of the summary’s taxes

and charges concern Finland, as do theentire Group’s operations. Fingrid had
minor business operations in Denmarkin 2018–2022, due to the Regional Security Coordinator (RSC) established inaccordance with the EU’s ‘Establishinga guideline on electricity transmission
system operation’ regulation. As a consequence, a low amount of income tax
has been paid to Denmark and a low
amount of tax prepayments on the sala-ries paid to personnel in Denmark havebeen remitted. In compliance with theregulation referred to above, the organisation for maintaining the operational
security of the power systems acrossFinland, Norway, Sweden and Denmark
was incorporated and started operatingas Nordic RCC A/S on 1 July 2022. Since
the incorporation, Fingrid no longer pays
taxes to Denmark.

Social responsibility
Good governance

FINGRID’S TAX FOOTPRINT, MEUR

2022

2021

2020

Income tax

45.34

33.52

29.72

Unemployment insurance contributions

0.63

0.53

0.42

Social security contributions

0.47

0.46

0.42

Real estate taxes

0.44

-0.26

0.45

46.88

34.25

31.02

Value added tax, net remitted-69.96

15.58

41.66

Electricity tax (incl. emergencypreparedness contribution)

5.91

4.81

48.50

Tax prepayments

9.70

9.01

8.25

-54.35

29.40

98.41

Taxes payable

Corporate responsibility GRI
and SASB disclosures

Taxes payable total
Taxes to be collected and remitted

Taxes to be remitted total

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORTGreen financing
Fingrid’s goal is to increase the amountof green financing in the company’s total
financing. Green financing is an importantpart of Fingrid’s financing strategy andresponsible operating model. Fingrid was
the first Finnish company to issue a Green
Bond in 2017.
Green Bonds are used to finance projects
that are expected to have long-term net
positive environmental impacts. Green
Bond projects connect renewable energy production to Fingrid’s transmission
network, reduce electricity transmission
losses, and create smart solutions thatsave energy and the environment. Fingrid annually reports on the impacts of
its Green Bond projects by publishing aseparate impact report on its website,
under ‘Investors’. The report’s emissions
calculations have been verified by andindependent third party.
As of 2019, the company has also disclosed the estimated amount of indirect
carbon dioxide emissions that have been
avoided through these projects in carbon
dioxide equivalent tonnes. Fingrid approved, from the company’s investment
programme, investment projects worth
altogether EUR 180 million as eligible for

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48

ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Green Bond financing. The company canfinance these projects with Green Bonds
in the future. As Fingrid did not need additional funding in 2022, the amount ofgreen financing did not increase.
Fingrid has a key role in connecting renewable electricity production and consumption to the power system. Fingrid
wishes to use green financing because itsupports the company’s goal of enabling
the transition to a clean power system.
Green financing also conforms with our
corporate responsibility policy, which
involves the assessment of the projects’environmental impacts, the responsibility
audits of service and goods providers,
and requires suppliers to commit to
the company’s corporate responsibility
requirements.
Supporting and sponsoring
non-profit activities
In all of its operations, Fingrid strives tobe impartial, fair and open. Our activities
are steered by legislation and reasonableness. According to the Limited Liability
Companies Act, Fingrid can use funds forphilanthropic or similar purposes, if theamount of the donation is insignificant inview of the state of the company. Fingrid
can thus support non-profit activities
based on its sponsorship guidelines

BUSINESS REVIEW

with a moderate amount of funds. The
main focus is on activities related to research, education, culture and people’s
well-being taking place in Fingrid’s industry. In 2022, the company supported,for example, child and youth work, youth
sports and electrotechnical studies withapproximately EUR 46,000. Furthermore,
Fingrid decided to donate the money
budgeted for the employees’ and stakeholders’ Christmas presents to charity.
The Good Holiday Spirit fundraising campaign and the association of mother andchild homes and shelters received EUR
8,000 in donations in December 2022.
In addition to direct sponsorship, Fingrid
can support joint societal projects withwhich the industry’s preconditions are
improved or harm to nature is reduced.
Fingrid does not support religious or political activities.
Support for Ukraine
The European transmission system operators received, via their industry network ENTSO-E, a request from Ukrainian companies to support the country’s
grid system with equipment deliveries.
Ukraine has suffered from the aggressor’s strikes on the grid and power plants,
and requested spare parts from the restof Europe to repair the damage.

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

Case
Support for student overalls
The students of electrical engineeringand energy systems engineering areimportant stakeholders for Fingrid.
Many of our summer employees have abackground in engineering studies, andthe graduates completing their master’s thesis on topics close to Fingrid
bring valuable fresh research insight.
Fingrid continued providing support toseveral student bodies by purchasing
an advert on their overalls in 2022.

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

The lists of necessary equipment received via ENTSO-E are quite specificbecause it is crucial to ensure that theequipment is suitable for the Ukrainian
grid voltage. Fingrid is able to provide
Ukraine with substation equipment suchas disconnectors and circuit-breakers,
measuring current transformers, and protection relays. Such equipment is freed
up from dismantled substations because
Fingrid is currently renewing a large numbers of its own substations and building
new ones, which means that the old but
functional equipment from the dismantled substations can be sent to Ukraine.
Otherwise they would be recycled.

Stakeholders and customers
Stakeholder engagement and trust
Responsibility vision

Short-termtarget 2025

Long-term
target 2035

Corporate
responsibility
viewpoint andUN’s SDG

Fingrid is known for its
good reputation andfor being a reliable
operator and energy
influencer

Fingrid is known as areliable company witha good reputation andis a sought-after partnerwith understandable
goals

Fingrid is well-known
throughout Finlandand customers areready to support its
responsible operations

Socialresponsibility
Other keystakeholders

Our employees interact with a number ofdifferent stakeholders on a daily basis. In
our stakeholder engagement, we follow
practices that are in line with the company’s values. First-class, respectful interaction must be the goal in all stakeholder
engagement. Our employees are trainedon how to interact with stakeholders. We
make sure that every employee is awareof our stakeholders’ expectations andknows how to act responsibly.

Fingrid’s expertise isvalued in Finland, theNordic countries andEuropeSome of the equipment is physically removed from the old substations, whichtakes some time. More equipment canbe sent later on in 2023.
In addition to this, Fingrid is supplying to Ukraine a set of ICT equipmentin support of grid operations in early
2023; the equipment became unnecessary for Fingrid during the ICT platformmodernisation.

Different stakeholders have different expectations of Fingrid. Based on stakeholder
surveys and the feedback we have received,
we are expected to act in accordance with
our vision, as a forerunner for electricity
network operations and respected and influential in energy matters. This entails thecontinuous development of our operations.
We are expected to provide reliable electricity transmission that meets customers’

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

needs. To keep the lights on in Finland
and to ensure that the consumption andproduction of electricity in Finland’s electricity system are continuously balanced.
This is currently more important than everfor the functionality of our society.
Being open to stakeholders’ expectations
and cooperation are an essential part ofsustainable business. In terms of communications, our objective is to encounter

GOVERNANCE

REMUNERATION REPORT

our stakeholders in a timely fashion anddisclose matters openly to ensure that theright people are easy to contact. Throughquality communications, we can influencesocial debate, thus promoting the targets
we have set ourselves and furthering our
success in a task that bears great significance for society.

The executive management group andBoard of Directors regularly monitor the
success of stakeholder interaction. We
have identified the key stakeholders interms of our operations (listed in the table), these stakeholders’ expectations,and identified the main measures carriedout with the stakeholders in 2022. The
leaders in charge of different areas are
responsible for the measures linked withstakeholder engagement as part of thecompany’s action plan.

CORPORATE RESPONSIBILITY

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50

Stakeholders and their expectations and Fingrid’s measures
ANNUAL REPORT 2022

Stakeholders’ expectations

Fingrid’s measures 2022

Owners and financers• Responsible business and good governance• Improvement in profitability• Preservation of shareholder value and stable
return development• Debt service consistent with agreements• Transparent reporting

The company was successful in creating shareholder value and paid owners the planned dividends.
We continued systematic dialogue with the financers and transparent financial communications on thecompany’s strategy, finances and business.

Customers• Reliable electricity and a well-functioning
electricity market• Services that meet customers’ needs• Affordable pricing• Predictable operations

Two large Fingrid Current events organised for customers and several webinars on projects to develop theelectricity market. Face-to-face meetings with different customer groups. Meetings with wind power facility
owners and many new customer groups: industrial investors, solar power plants and battery storage systems.
Fingrid’s advisory committee convened four times, and the grid committee and the market committee four times
each. Customer communication took place through a newsletter and the customer magazine.

Personnel• Equal treatment and rewards• Well-being in the work community• Occupational safety• Professional development opportunities• Stable employment

Diverse training organised for the personnel at Fingrid Academy (Loikka IV, O365, project management,
language training, presentation skills coaching, supervisor coaching). A coaching day was arranged for the entire
personnel in May, focusing on corporate culture and being the CEO of one’s own work. Occupational healthcare,an important safeguard for employee wellbeing, was retendered in 2022. The OHS committee boosted goodcollegial spirit with a year-long anti-harassment and anti-discrimination campaign.

Policymakers• Reliable electricity• Shaping the clean and market-oriented powersystem of the future• Well-functioning electricity market• Participation in the electricity market

Contacts with political decision-makers were exceptionally regular in 2022 due to the electricity market impactsof Russia’s war of aggression. Fingrid’s representative has been present in the parliamentary CommerceCommittee’s meetings concerning issues such as the current energy policies in the EU and Finland, climate policy
planning in the land use sector, and the climate and energy strategy. Various political parties have also requested
Fingrid’s representatives to speak at their engagements.

Authorities and NGOs

• Promotion of common interests• Clear, reliable and timely communication• Expertise

Meetings with national and local authorities related to the grid investment programme, building more wind power,
and especially adequacy of electricity in the winter 2022/2023. Security of supply issues were also highly topical.

Contractors and service
providers• Occupational safety• Responsible treatment of suppliers• Predictability and continuity

Fingrid took over some of the commodity risks linked with the materials needed for grid investments.
Several OHS events were arranged during the year. The joint Grid Day event for service providers and Fingrid
personnel focused on the safety of grid construction and maintenance. Several OHS info events, training eventsand safety supervisor meetings were also arranged, and various newsletters were sent to worksites in support ofsafety communication.

Landowners andneighbours• Responsible operating methods in land-use andCommunications and direct contacts at different stages of transmission line projects and during maintenance.
environmental matters to reduce negative impacts Events for the general public, letters to landowners and newspaper advertisements in EIA procedures, and online• Proactive and reliable contact
feedback system.

Other partners• Expertise• Promotion of common interests

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSThe cooperation between Nordic and the Baltic Sea region’s TSOs was particularly active. Several multi-year
development projects are underway.

FINANCIAL STATEMENTS

GOVERNANCE

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51

Customers
ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility

Responsibility vision

Short-termtarget 2025

Long-term
target 2035

Corporate
responsibility
viewpoint andUN’s SDG

Affordable forcustomers, fairpartner to customers,
most market
favourable TSO

Customers are happy
with Fingrid’s services

Customers are happy
with Fingrid’s services

Socialresponsibility
Customers

Among the mostaffordable TSOs in
EuropeAmong the mostaffordable TSOs in
EuropeWell-functioning
electricity market
and system security
at a good level

We secure reliabletransmission ofelectricity in the main
grid, capable of meetingthe needs of utility
companies and energy
intensive industry

Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

We provide electricity
market operators witha unified price area forelectricity in Finland
as well as the benefitsof the open European
electricity markets

Transmission system operators havequite similar core missions in different
countries, but they can be managed invery different ways. Fingrid stands out
from other TSOs through its customer
focus. One of Fingrid’s most important
strategic choices is a focus on customers,
the success of which is ensured by providing services that match the customers’
needs and by an effective customer service model. We work for the benefit of ourcustomers and society. Reliable electricity
and a well-functioning electricity market
are secured for society, and customers
are offered grid connections and transmission services as well as affordable
prices. We work in close cooperation withcustomers and we listen closely to theirneeds. Fingrid has increased solutions
that enable customers to more easilyacquire information on our services andcapabilities to meet their needs. These
solutions include our open data services
and the newly opened Verkkokiikari or‘Grid Scope’ service on our website toprovide information on grid connection
possibilities.
The main grid is planned in cooperation
with our customers, and the grid investments are based on actual customer
needs and transmission quality require-

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORT

ments in a changing power system. The
importance of cooperation will continue
to grow as we transition towards a consumer-centric, digital electricity market.
Our promise ‘Fingrid delivers. Responsibly.’ illustrates many key issues. To ourcustomers, we promise to deliver, i.e. totransmit electricity in the main grid reliably and affordably. The quality of theservices is maintained at a level that
ensures that the number of operational
disturbances and outages remains low.
Our operations are efficient, and our gridtransmission prices are among the lowest
in Europe.
Affordable grid service fees andhigh productivity
At Fingrid, responsibility means doing
the right thing and saving in costs. Fingrid ensures the high productivity andcost-effectiveness of its operations byfocusing on customer needs. Fingrid,
Finland’s TSO, is known for its cost-effectiveness: grid service fees are among
the least expensive in Europe, and yet our
main grid has high transmission capacity
and reliability. Each year, the company
ranks among the best in international
comparison surveys that measure thecost-effectiveness and quality of our

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosurestransmission system operations. We also
have an international certification for the
management of physical assets (ISO
55001), which was recertified in 2022.
This is proof of the effective managementof costs and other risks related to gridassets (such as expense risks).
In its benchmark group, Finland’s main
grid offered the second-lowest prices
for electricity transmission in Europe.
The European Network of Transmission
System Operators for Electricity (ENTSO-E) compared electricity transmissionin 36 countries. Nineteen of the countries
are EU/EEA countries comparable with

Finland, with large geographic areas andmain grids operating at various voltages.
The cheapest of these were Slovenia,
Finland and Norway.
The high price of electricity and major area
price differences have increased TSOs’congestion income. In contrast to theother Nordic countries, Fingrid does notreceive congestion income from the transmission links within Finland, as the wholecountry constitutes a single price area.
The congestion income for the cross-border connections substantially increased
Fingrid’s share of the congestion income
compared with previous years. At the sametime, market-term costs have significantly
increased due to the exceptionally highprice of electricity. The use of congestion
income is regulated by EU-level legislation, which is implemented by the Energy
Authority at the national level. By the
Energy Authority’s decision, Fingrid used
its congestion income for investments toincrease cross-border capacity and tocover the increase in operating costs, andthis way avoided any changes to the gridpricing during 2022.
Fingrid decided to use the record-highcongestion income of 2022 to cover theincreased costs and to waive grid service
fees in December 2022, and in January,
February and March of 2023. Fingrid alsoplans to waive grid service fees for three
additional months in 2023. This would
reduce main grid customers’ current payments by some EUR 300 million.
The number of new wind power producers grew, as in previous years. During theyear, around 770 megawatts worth of
new connection agreements were concluded. Some 240 megawatts worth ofsolar power connection agreements wereconcluded. The challenge is to build the
new connections and to simultaneously
develop the main grid to meet new transmission needs. Additional challenges can

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORT”

Fingrid waives
EUR 300 million in
grid service fees.

ENTSO-E transmission tariffcomparison
European system operators
€/MWh

30
25
20
15
10
5
0

Lowest Average Highest Fingrid

2019

2020

CORPORATE RESPONSIBILITY

2021

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

be caused by the fact that the design,permit, land acquisition and construction
processes necessary for grid construction
can take significantly more time than it
takes to implement the customer projects
that depend on those new grid links. The
growth of renewable energy production
has also created more interest in investments designed to consume clean
electricity. Such projects were plannedin cooperation with customers. Market
development projects, such as the Datahub, a centralised information exchangesystem for the retail market that went
live in February, and the 15-minute imbalance settlement period to be adopted
in 2023, also required many discussions
with our customers, as they will have major impacts on customers’ metering andinformation systems.

All customer contacts and feedback arerecorded in our CRM system, which provides us with an overall picture of customer satisfaction in order to develop ouroperations.

Customer satisfaction
Understanding customers’ needs andchallenges is crucial to Fingrid’s operations. A good measure and trend indicatoris the annual customer satisfaction survey,
the results of which have been very goodfor many years now. Customers are happy
to recommend Fingrid’s way of working.
Customer satisfaction is one of the key
indicators of strategy implementation andremuneration for the entire personnel.

Working with Fingrid’s experts was perceived as very positive, with better results
across the board. The most highly rated
areas were Fingrid’s expertise and service-mindedness, and various experts
were specifically praised in the open-ended
feedback. Significant improvements had
been made in the ability to solve problems
and understanding customer needs, whilein the open-ended feedback, some people
still requested improvements in these areas.

BUSINESS REVIEW

starts already during the preliminary
planning stage, when the environmental
impacts and the possibilities to mitigate
them are addressed. The land and trees
under the transmission lines remain theproperty of the landowner. We help landowners identify where they can influencea transmission line project and encouragethem to safeguard their rights. Respectfulinteraction with people and cooperation
aimed at reducing the harm caused tohumans and nature are pursued throughout the life cycle of the transmission line.
Fingrid actively communicates to thelandowners and continuously develops
its practices based on feedback.

Net Promoter Score from
customers (cNPS)
100
80

The traditional customer survey was carried out in late August and early September. Customers’ satisfaction with Fingrid’s
services remained at a high level. The Net
Promoter Score, in other words the customers’ approval of Fingrid’s way of working,increased to +50 (+41 in 2021). The score
for how well Fingrid’s services match thecustomers’ needs was 4.1 on a scale from
1 to 5 (4.0 in 2021). Areas that improved
were, in particular, disturbance clearing andopen electricity market data. The reserve
markets, balance services and Datahub
services were perceived as weaker.

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

60
40
20
0

2020

2021

2022

Fingrid’s role in implementing a carbon
neutral Finland is significant, and thecompany’s operations in the interest ofsociety as a whole were given a score of
4.4 (4.3 in 2021).
More on our customer operations can befound in the Business Review included in
the Annual Report.
Landowners
Cooperation with landowners and neighbours living near grid transmission lines
is important to Fingrid. When planning
new transmission lines, the cooperation

GOVERNANCE

REMUNERATION REPORTIn 2022, we reviewed Fingrid’s land use
and environmental policy to ensure it is
up-to-date. In accordance with the policy,
our goal is successful interaction withlandowners and neighbours of transmission line right-of-ways. We conducted alandowner survey on the Kontiolahti–
Uimaharju transmission line project thatwas completed during the year, and we
received a score of 3.9 on a scale from 1
to 5. The score fell just short of our target(> 4). The expectations for improvement
expressed by the landowners focused oncommunications and the tracks left bywork machinery.

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

In order to be able to build, operate andmaintain a transmission line, Fingrid expropriates a right-of-use to the transmission
line area. In 2022, an expropriation permit decision was issued for the following
transmission lines: Viitajärvi–Pyhänselkä,
Torna–Lautakari, Kauppila–Hännilä,
Leväsuo–Isokangas, Arkkukallio–Furubacka, Keminmaa–Isohaara, Isohaara–Raasakka and Siikajoki–Olkijärvi.
An expropriation permit application was
drawn up for the Vuennonkoski–Viitajärvi,
Huittinen–Forssa, Nuojuankangas–Huutokoski (Lake Line), Siikajoki–Sorsaraivio,
Keminmaa–Isohaara and Isohaara–Raasakka transmission line projects and for the
Teikkoperä and Höyttikangas substation
projects. The compensation process forcompulsory purchase was completed in
the Hikiä–Orimattila transmission line
project. Fifteen hearings in accordancewith the Redemption Act were held withlandowners. Two built-up holiday home
properties and the buildings on one property were acquired for the appropriate
implementation of the Lake Line transmission line project.
Amendments to the Redemption Act
concerning procedural details and modifications to the implementation of the EIA
Directive entered into force in September
2022. The amendment to the act, pend-

BUSINESS REVIEW

ing since 2016, particularly concerned
the renewal of the grounds for compensation, but the issue has been delayed.
Fingrid does not rule on the compensations for compulsory purchases; thesecompensations, to be paid by Fingrid, aredetermined in an expropriation procedure
carried out by the National Land Surveyof Finland. In 2022, landowners’ dissatisfaction with the expropriation compensations became evident during Fingrid’s
ongoing EIA procedures, for example.
The act on the expropriation permits for
specific projects with land-use implications (768/2004), which affects therules for how the results of EIA procedures should be accounted for in an expropriation permit procedure, was also
under review in 2022. According to the
expropriation permits act, the ruling on an
expropriation permit must include the requirement for the transmission line route,the implementation methods and datesof implementation, and the monitoringof the impacts of the project necessary
for limiting any adverse effects. Fingrid
highlighted in its related statement thesignificance of comparing public and private interests and the requirement thatthe amendment of this act should not slow
down or complicate the existing well-functioning expropriation permit process.

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

Case
Fingrid’s strong presence atindustry exhibitions
The global silence necessitatedby the pandemic gave way to a
rebirth of industry exhibitionsand various public events in
2022. Fingrid was represented
at the Farmari exhibition in Mikkeli, FinnMETKO in Jämsä andat Energia in Tampere. We met
students close to our industry,for example, at Aalto Talent Expoand Contact Forum, Finland’s
biggest recruitment and career
event for university students.
Exhibitions are an important
platform for Fingrid’s outreachto our stakeholders and forcommunicating our latest news.
During 2022, we were present
at various events for landowners, students and energy sector
actors in general. Our message
focused on Fingrid’s ongoingprojects, and we responded tovisitors’ specific informationneeds at our stand.

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Other key stakeholders
European legislation and regional solutions on market rules have a significant
impact on the electricity markets. Fingrid
actively participates in the preparationand implementation of EU legislation
together with European, national andregional authorities, and other transmission system operators. The idea is tosafeguard the best interests of our Finnish stakeholders. In electricity transmission connections between neighbouring
countries and within Finland, we try to
avoid transmission bottlenecks.
Fingrid works together with Finnish
political influencers and authorities
to develop the electricity system and to
reinforce the main grid so that Finland
can achieve its carbon neutrality goal andmaintain the balance and quality of theelectricity system.
Financers, credit rating agencies andshareholders expect us to plan thecompany’s finances, investments, risk
management and financing in the longterm. The company’s decision-making
and operations are based on the rightinformation at the right time and on our
objective to be an efficient, profitable andresponsible company.

BUSINESS REVIEWContractors and service providers area significant resource for our company
through their expertise and the work input we receive from them. Contractors’and service providers’ main expectationsof us are a safe working environment andthe possibility to plan for future situations
collaboratively.
Fingrid also collaborates with different
higher education and research institutions. The company annually has dozens
of R&D projects underway, seeking innovations that will enable the transformation of the energy system.
We regularly survey our stakeholders’views on the company. The surveys areintended to bring in feedback on thecompany’s operations and to help us takestakeholders’ wishes and insights on thecompany into account in our operations.
We measure customer satisfaction andthe development of the company’s reputation, and its success in various projects.
We use the results of the stakeholder
survey also for identifying key responsibility themes.

can be found in the responsibility target
tables, and they are also accounted forin the Business Review.

Our stakeholder
surveysTarget group

Scope

Reputation survey

Customers
Policymakers
Authorities
Technology professionals
The general public

Reputation survey spring 2021
Every 2–3 years, 2021 most recent
Every 2–3 years, 2022 most recent
Once a year
Once a year

Customer satisfaction Customers
surveyOnce a year

Personnel survey

Personnel

Once a year

Completedtransmission line
projects

Landowners

Always at the end of a project

The table below shows our different
stakeholder surveys, their target groups
and their scope. The results of the surveys

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORTCORPORATE RESPONSIBILITY

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56

Supply chain
ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

Responsibility vision

Short-termtarget 2025

Fingrid is a responsible Responsibility
buyer of services andrequirements included
goods
in all of the company’ssourcing activities

Environmental responsibility

No major deviations
or problems incontractor obligationor employment
relationship matters

Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Long-term
target 2035

Corporate
responsibility
viewpoint
and UN’s SDG

Extensive andcomprehensive
responsibility
requirements included
in all of the company’s
procurements

Socialresponsibility
Supply chain

No major deviations or
problems in contractor
obligation or employment
relationship matters

Supplier audits cover
95% of the value of
ex works deliveries in
2025

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

Responsible procurement practices are
impactful in Fingrid’s outsourcing-based
business model. Fingrid uses many different service providers in its business.
Service and goods suppliers are required
to commit to Fingrid’s Supplier Code of
Conduct or their own similar code. The
code covers issues such as businesspractices, human rights, labour rights,
occupational safety, the environment, andanti-corruption in compliance with theUnited Nations’ Global Compact initiative.
The Supplier Code of Conduct is always
applied to procurements worth at least
EUR 60,000 and they are linked to material, equipment, ICT etc. purchase agreements. Compliance is monitored on a risk
basis, and the remedying of any detected
deviations is supported in cooperation
with the suppliers. The Supplier Code of
Conduct is a condition for being included in supplier registers used in recurring
substation and transmission line procurements. In addition, contractual partners
are subject to separate contract terms
related to the use of subcontractors andworkforce, and to occupational safety
and environmental matters. Assessments
are also carried out during projects, monitoring the technical implementation as

GOVERNANCE

REMUNERATION REPORT

well as the management of occupationalsafety and environmental issues at theworksite. Operational excellence affects
the final score of the assessment, which
is taken into account as quality scores infuture competitive bids.
Construction work on the grid is carriedout on a project basis, in separate substation and transmission line projects aswell as in so-called turn-key contracts.
The main contractor, acting in the roleof Fingrid’s contractual counterparty,
is in charge of the detailed design, theprocurement of material and equipment
as well as building and installations untilcommissioning. The main contractor ona specific project may have several subcontractors and must submit the mostsignificant subcontractors for approval
by Fingrid.
The qualifications of the contractors andservice suppliers carrying out grid construction and maintenance are verified
primarily by means of various supplierregisters and shortlisting procedures. A
validation system to ensure the properqualifications of employees for performing maintenance on transmission lines
and substations is also in place.

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Of Fingrid’s direct contractual partners
in the construction and maintenanceof main grid transmission lines, the 20
biggest account for roughly 95 per centof the contractual volume. Thirty-five of
the suppliers have a contract portfolio of
more than one million euros with Fingrid.
There are two companies with regional
contracts on transmission line maintenance and four companies with regional
substation maintenance contracts.
In basic grid maintenance, service providers and their subcontractors use Finnish
workforce. In 2022, foreign workforce
was used in the clearing of transmission
line right-of-ways (around three quartersfrom the Baltic countries, Poland, Ukraine
and Thailand) and, on minor scale, in somespecialist fields. Both the contractors’and subcontractors’ use mostly Finnish
workforce for grid building work. In 2022,
a substantial number of non-Finnish
personnel, from the Baltics and Spain,
worked mainly on transmission lines andto some extent, e.g. from the Baltics, also
at substations.
We verified compliance with the responsibility requirements through several riskbased audits. As part of the procurement

BUSINESS REVIEW

process, we checked regularly that theelected suppliers are not subject to mandatory exclusion criteria based on procurement legislation for special sectors
or international sanctions.
Worksite responsibility audits are used
to verify service providers’ compliancewith contractor obligations, occupationalsafety and environmental requirements.
The goal is to support the service provider in even safer and more eco-friendly
ways of working. During 2022, 11 sites
were audited, from investment projectworksites to maintenance operations.
The most typical deviations discoveredin the worksite audits had to do with risk
management and the processes for thehand-over inspections of machines andequipment. As a new measure, the audits
covered also two concrete plants supplying the worksites with materials.

Turkey. The audits included one follow-up
inspection to verify the rectification of
non-compliance issues from earlier audits. The audited plants included capacitor, secondary equipment and steel tower
producers, and especially conductor factories linked with an ongoing procurement
project. The audited companies included
both Fingrid’s direct contractual partners
and their suppliers, but also possible future material and equipment suppliers.
The deviations were typically related tooccupational health and safety or management systems. Some irregularities inworking hours were also discovered. In
addition to the production plant audits,
Fingrid made preparations for service
provider audits outside Finland in 2022.

FINANCIAL STATEMENTS

GOVERNANCE

India, 5

Other*,
12

23

China, 2auditstotal

Sweden, 2
Turkey, 2*Other (1/country): Bahrain, Brazil, Bulgaria,
Mozambique, Puerto Rico, Poland, Germany,
Slovakia, Finland, Hungary, Estonia, UAE

Businesspractices
47

Wages &
working
hours 48

In international goods sourcing, Fingrid
carries out very few direct material andequipment procurements, as the majorityof the procurements are the responsibility of the main contractors. In 2022,
third-party supplier audits were carriedout at 23 production plants in altogether
15 countries, such as India, China and

REPORT OF THE BOARD OF DIRECTORS

Audits related to international
material sourcing by country anddistribution of findings

Labor 14
Environment 2
Health &Safety 111

312
deviations
in total

Management
systems 90

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Occupational safety and the safety of the main grid
ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Responsibility vision

Short-term target
2025

Long-term target
2035

Corporate
responsibility
viewpoint andUN’s SDG

Each of our employees
and everyone working
at a Fingrid worksite
returns home healthy
and in one piece –at the end of every
workday.

Low LTIF (lessthan 5)

Zero workplace
accidents

No serious
occupationalsafety deviations

No serious
occupationalsafety deviations

Social responsibility
Occupationalsafety and thesafety of the main
grid

Main grid does notcause harm to the
public.

Fingrid is known
for exceptional
occupational safety

Fingrid is known
for exceptional
occupational safety

The main grid issafe, no accidents
or health impacts

The main grid issafe, no accidents
or health impacts

Occupational health and safety come firstin all of Fingrid’s activities. It is importantfor us that each of our employees andevery service provider employee working at a Fingrid worksite returns homehealthy and in one piece. Each employee
has the right and obligation to stop workthat they consider to be dangerous. Fin-

BUSINESS REVIEW

grid’s operations also comply with regulatory requirements, which means thateach person is also entitled to refuse toperform work that they consider to be
hazardous. Our worksites and transmission lines must not pose a hazard to the
public either.

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

Promoting occupational health andsafetyFingrid’s occupational health and safety
management is steered by Fingrid Oy’s
occupational health and safety policy andgoals. We apply an OHS management
system based on the ISO 45001 standard,
the scope of which has been limited to
the functions and units working with gridconstruction, maintenance and reserve
power plants. The Occupational Safety
and Health Act requires an action planfor occupational health and safety, whichapplies to Fingrid’s entire personnel.
In addition to our own personnel, it is equally important to guarantee the occupational
health and safety of the personnel of theservice providers working at our worksites.
Fingrid requires a high level of occupationalsafety in investment projects and maintenance alike. Contract terms concerning
Fingrid’s safety are appended to all agreements. The workplace safety and working
conditions of suppliers working at Fingrid’s
worksites is ensured with measures suchas regular worksite visits, management’s
occupational safety rounds and sustainability audits. Our global sourcing practices
require a third-party verifier on a risk-based
approach to ensure compliance with occupational safety standards at the workplacesof our equipment and material suppliers.

GOVERNANCE

REMUNERATION REPORT

Identifying hazards, risk assessment and investigation
Fingrid’s occupational health and safety
procedures are continuously developed
and our work environments are upgraded on the basis of risk assessments andworkplace surveys. All accidents, nearmisses and safety observations are investigated and the lessons learned are
implemented.
Occupational safety deviations are classified in three classes based on the severity
and risk of potential outcomes. The extent
of the investigation and responsibility for
it are based on the severity classification.
The investigation, reporting and the corrective actions and follow-up take placein the HSEQ reporting system. Safety
observations can also be made anonymously at the address www.fingrid.fi/
havainto.
Fingrid’s OHS committee coordinates therisk assessments of the company’s own
personnel. Risk assessments are handled
in the OHS committee. The identificationof hazards in investment projects andmaintenance and the evaluation of risks
is divided into several stages.
We ensure the quality of the risk assessments with the support of specialists and

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosuresthrough sufficient training. The internal
audit results for OHS are processed annually in the Management Review and,according to the scope required, in the
OHS committee. The OHS committee
annually creates an action plan based on
factors such as risk assessments, safety
observations, occurred accidents andnear misses.
Occupational healthcare services
Fingrid has an agreement with occupational healthcare services that applies
to all persons employed by Fingrid. The
occupational healthcare services makeworkplace visits to the company’s various
locations and, in this way, take part as ahealthcare specialist in the identification
and assessment of the risks affecting thecompany’s occupational health and work
ability. In addition they provide recommendations for measures to prevent andmitigate the risks. The quality of occupational healthcare services is monitored
and steered regularly through steeringgroup activities.
We require our service providers toprovide an account of the arrangementof occupational healthcare services asstated in the Act on the Contractor’sObligations and Liability when Work is
Contracted Out.

BUSINESS REVIEW

Participation in OHS development
Fingrid has a legally required OHS committee, whose chairman is the OHSManager. In the committee, employees
are represented by occupational safety
representatives from several areas ofoperations. The OHS committee convenes regularly and its memorandums areavailable to the personnel. The employees may also make suggestions to thecommittee for developing occupational
health and safety.
Service providers can make propositions
on their own initiative and give feedbackon occupational safety issues at joint
meetings, through the HSEQ reporting
system and in the suppliers’ occupationalsafety group. The memorandums of thegroup’s meetings are published on Fingrid’s website.

OHS management system applies toare described in the occupational safety
handbook. Training organised for personnel is planned annually dependingon need. It is discussed in the internal
occupational safety group and OHS
committee. Developing safety skills is the
responsibility of each Fingrid employee
and their supervisor.
The occupational safety qualification
requirements for service providers aredescribed in the contract terms concerning safety. We annually organise
occupational safety training for service
providers as needed, on topics such as
electrical safety, occupational safety, andsafety-related contract terms.

OHS topics are communicated on twicea year in the Safety on the lines magazine. We also hold occupational safety
briefings where we review current issues
and any accidents and near misses thathave occurred and any reported safety
observations.

In 2022, we arranged the ‘Safety is done
together and by everyone alone’ campaign to encourage Fingrid’s personnel
and service providers to carry out risk
assessments. Several OHS briefings
and training events were held for Fingrid’s personnel and service providers.
Furthermore, new safety guidelines were
published and safety-related contract
terms were updated.

Training and development
The occupational safety training requirements for functions and units that the

Occupational safety 2022
One of Fingrid’s long-term goals is toimprove the occupational safety culture

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORT

and, in this way, achieve its zero-accident objective. A total of 0 (0) lost-time
workplace accidents were recorded
among Fingrid’s own personnel. A totalof 10 (17) absences due to accidents at
the workplace were recorded among theservice providers. Among the lost-time
accidents, 6 (1) led to an absence fromwork of more than 30 days and was classified as serious. The service providers’and Fingrid’s combined lost time injury
frequency (LTIF) decreased from theprevious year to 5.4 (9.1) absences due
to accidents at the workplace per million
worked hours.
Slipping and tripping caused a significant
share of workplace accidents in 2022.
Fingrid’s own personnel experienced 6(4) recordable workplace accidents andthe service providers 19 (27) recordable
workplace accidents. The service providers’ and Fingrid’s combined TRIF rate
was 13.5 (16.6) recordable workplace
accidents per million hours worked.
We also measure the work carried out toachieve occupational safety. The numberof safety observations grew year-on-year.
A total of 640 (534) safety observations
were made at Fingrid’s worksites.

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60

WORKPLACE ACCIDENTS, OWN PERSONNELANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

Absences due to illness, %

2021

2020

1.5%/3.5 days/person

1%/2.1 days/person

1%/1.5 days/person

Workplace

Business travel

Workplace

Business travel

Workplace

Business travel

No. of accidents leading to absences

0

0

0

0

2

1

of which serious accidents(no. of absences of more than 30 days and/or permanent injury)

0

0

0

0

0

0

No. of recordable workplace accidents, no absence

6

3

4

5

0

0

No. of recordable workplace accidents, total

6

3

4

5

2

1

Lost-time injuries frequency,
workplace accidents resulting in absence (LTIF)*

0

0

0

0

3,3

1,6

Environmental responsibility

Total recordable injury frequency (TRIF)*

Social responsibility

No. of work-related fatalities

Good governance

No. of safety observations

Corporate responsibility GRI
and SASB disclosures

2022

7,9

5,9

0

No. of occupational diseases diagnosed

0

3,3

0

0

0

0

no casesno casesno cases

11

26

17

* LTIF in line with Zero Accidents. As of 2022, LTIF also includes Fingrid Datahub Oy.
WORKPLACE ACCIDENTS, SERVICE PROVIDERS

2022

2021

2020

No. of workplace accidents leading to absences

10

17

14

of which serious (no. of absences of more than
30 days and/or permanent injury)

6

1

5

No. recordable workplace accidents, no absence

9

10

12

No. of recordable workplace accidents, total

19

27

26

Lost-time injuries frequency, workplace
accidents resulting in absence (LTIF)

9.2

14.2

16.8

Total recordable injury frequency (TRIF)

17.4

22.6

31.2

No. of safety observations

629

508

460

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

COMBINED WORKPLACE ACCDENTS (OWNPERSONNEL AND SERVICE PROVIDERS)

2022

2021

2020

Combined lost time injury frequency (own personnel
and service providers), workplace accidents resulting
in absence (LTIF)*

5.4

9.1

11.1

Combined total recordable injury frequency(TRIF, own personnel and service providers)

13.5

16.6

19.4

GOVERNANCE

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61

Lost Time Injury Frequency(LTIF) and workplace accidents
ANNUAL REPORT 2022

20
16

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

12

Case

8
4
0

Environmental responsibility

2020

2021

2022

No. of own personnel’s workplace
accidents leading to absences
No. of service providers’ workplace
accidents leading to absences
Total no. of workplace accidents
leading to absences

Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Occupational safety campaign 2022
Fingrid’s guiding principle is that every employee and anyone else working at a Fingrid
site returns home healthy and in one pieceat the end of every workday. This principle
was reinforced with the 2022 occupationalsafety campaign “Safety is done together
and by everyone alone”.

20
16
12
8
4
0

2020

2021

2022

LTIF, Fingrid’s personnel
LTIF, service providers
Combined LTIF (Fingrid’s personnel& service providers)
Combined total recordable injury
frequency (TRIF, own personnel
and service providers)

LTIF and workplace accidents

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSThe campaign focused on the risk assessment and hazard recognition to be carriedout before starting work. Risk assessments
were looked into during the campaign
through six different occupational safety
themes. Work sites received related materials, and the progress of the campaign wascommunicated at safety info meetings, forexample.

Markku Pöysti, OHS Expert at Fingrid: “It was
great to see how well people received thecampaign at worksites. Risk assessments will
be continued next year, so let’s push the LTIF

The campaign was clearly a success. The
number of risk assessments entered into
the HSEQ system increased drasticallyin comparison with the previous years,
amounting to more than 600 in total
throughout the campaign.

FINANCIAL STATEMENTS

GOVERNANCE

down to zero – we can do it together.”

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ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Safety of the main grid
In addition to occupational safety, it isimportant for Fingrid that the main grid
does not pose any danger to people or
the functioning of the power system.
During 2022, no personal injuries werecaused by the main grid to the public.
The safety of the transmission lines areguaranteed through careful and pre-emptive maintenance. Regular inspectionsof the transmission line structures andtransmission line right-of-ways are carried out. The undergrowth below thetransmission lines is cleared regularly,
while the height of the forests next totransmission lines is reduced using helicopter sawing and felling so that any trees
falling over do not come into contact withthe transmission lines.
Faults identified in inspections are repaired pre-emptively before they causeinterruptions in electricity transmission or

BUSINESS REVIEWa hazard in the transmission line’s vicinity.
In 2022, inspections were performed onsome 5,100 kilometres of transmission
line. Around 5,000 hectares of transmission line clearings were trimmed, androughly 111,000 cubic metres of wood
was felled in the bordering forests. Morethan 11,500 landowners were contactedwith regard to the measures. With thesemeasures, the transmission lines remain
secure and above all are safe for theirenvironment.
The ongoing energy transformation andgreen transition highlights the importanceof reconciling biodiversity protection withclimate change mitigation and theseboth with developing the main grid andthe reliability of the power system, also
key components in Fingrid’s corporate
responsibility. When mitigating climatechange and biodiversity loss, both Fingrid’s crucial societal and statutory mission and responsibility for the electricity

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

system should be taken into account. In
2022, the Uusimaa Centre for Economic
Development, Transport and the Environment (ELY Centre) prohibited Fingrid
to fell trees at the edge of transmission
lines at Rörstrand in Sipoo and at Lemmenlaakso in Järvenpää, citing conservation-related grounds. The work is a part ofregular maintenance of the main grid andnecessary for accomplishing Fingrid’s obligations in compliance with the Electricity
Market Act. The court has not yet decided
on the case. Also another ongoing case isrelated to transmission line maintenance;
Fingrid submitted an appeal concerninga permit to deviate from the prohibitionof destroying and degrading a breeding
and resting site of the flying squirrel.
Regular guidelines are issued on work andother activities near the electricity network. Fingrid actively participates in landuse planning together with municipalities
and associations of local authorities to

GOVERNANCE

REMUNERATION REPORT

ensure safety and land-use reservations
for the grid. In 2022, Fingrid issued about
350 statements on land-use plans andenvironmental impact assessments. In
addition, we directed the construction
work and activities taking place neargrid installations by issuing roughly 380
statements that included safety instructions and land-use restrictions. Fingrid
also carried out several related reviews
and provided inductions. We continued
to participate in the reform of the Land
Use and Building Act into the planningand building act. In our statements, westressed the importance of regional land
use planning and its steering impacts
on Fingrid, and taking the main grid into
account in the land use planning system.
The reform proceeded to the stage ofgovernment legislative proposal in theautumn of 2022.
People are concerned about the electromagnetic fields in the vicinity of transmission lines. Electromagnetic fields are
everywhere around us and one of thesources of these fields are transmission
lines. However, the limit values set by the
Ministry of Social Affairs and Health for
public exposure are not exceeded in thevicinity of transmission lines. In 2022,
we continued to publish, jointly with anindependent expert party, status reports
on global medically oriented research onelectromagnetic fields. There is no new,conflicting evidence of the health impacts.

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Fingrid’s social responsibility indicators
Social target indicators, target levels and results

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility

Indicator

Description

Personnel

2025

Target monitoring: how we did in 2022

UN’s SDG

Finland’s best workplace

Result of personnel survey

Among Finland’s best
workplaces

Target achieved. Fingrid again achieved the excellent AAA PeoplePowerrating (index of 83.4 on a scale from 1 to 100).

Healthy and happy personnel

Absences due to illness
Retired< 2%
No premature retirement

Absences due to illness were at 1.5%. Two cases of early retirement on
partial disability pension.

Diverse work community

Equal opportunity, nondiscrimination and diversity

No incidents of discrimination
More diverse personnel
structure

No incidents of discrimination. An equality campaign was arranged.
The personnel has a healthy age structure.

Green financing

Total amount in company’s
financing arrangements

As Fingrid did not need additional funding in 2022, the amount of green
The goal is to increase theamount of green financing in the financing did not increase.
company’s total financing

Financial efficiency

Development of regulation
costs matching the generalprice levels

Rise in controllable costs slower The controllable costs in compliance with Fingrid’s financial regulation
than the general development in remained at the previous year’s level, despite the general cost inflation
the industry.

Effective tax rate

Paying taxes according to
Finland’s corporate income
tax rate

Paying taxes according to thecorporate income tax rate inforce at any given time.

Good governanceCorporate responsibility GRI
and SASB disclosures

Finance

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

Fingrid paid EUR 45.3 mill. in taxes in 2022. In 2021, 26th largest
corporate income tax payer.

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Indicator

Description

2025

Customers

Target monitoring: how we did in 2022

YK:n SDG

System security Well-functioning markets

Defined under climate targets

Customer satisfaction

cNPS

>50

cNPS was 50

Affordability of grid
service fees

ENTSO-E price comparison

Among 3 most affordable

2022 result not yet known. Ranked 2nd in 2021.

Satisfaction of landowners

Satisfaction with the
management of investment
projects (1–5)>4

The overall grade was 3.9Company’s reputation among
different stakeholders

Stakeholder surveys

Fingrid is a well-known company Both the employer image among engineering professionals and theand sought-after partner among reputation among the general public improved somewhat. The familiarity
with Fingrid improved, probably due to the visibility in media during theall stakeholders
year concerning the adequacy of electricity.

Willingness of service providers
to work with Fingrid

Functioning of service
provider market

Competitive, well-functioning
and high-quality service
provider markets

A lot of quotes were received, especially for the most critical projects.

Lost-time injuries frequency

Combined lost time injury
frequency (own personnel
and service providers), (LTIF)<5

LTIF was 5.4

Safety of the main grid

Number of accidents to the
public0

No harm to the public

No. of deviations or problems
in contractor obligation or
employment relationshipmatters

No major deviations

No major deviations or problems in contractor obligation or employment
relationship matters

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility

Other key stakeholders

Good governanceCorporate responsibility GRI
and SASB disclosures

Occupational safety

Supply chain
Procurement chain
responsibility

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

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CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

04
Good governance

Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Fingrid’s good governance is based on
openness and a responsible operating
model. Fingrid’s management complies
with the laws, regulations and recommendations of the Finnish Governance Codefor listed companies that apply to thecompany’s operations and the principles,policies and guidelines decided within
the company. The main aspects of thegoals and requirements of responsible
and ethical operations, good governanceand risk management have been definedin the company’s values, Code of Conduct
and internal control and risk management
principles, which have been separately
approved by the Board of Directors. Our
corporate culture is based on openness
and the personnel’s strong commitment
to the company’s values and Code of
Conduct.

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

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Openness
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CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Corporate culture
Responsibility theme,
visionShort-termtarget 2025

Long-term
target 2035

Corporate
responsibility
viewpoint andUN’s SDG

We commit to andrequire others to commit
to responsibility andlisted companies’ good
governance in line with
our values

Our entire workcommunity iscommitted to a
responsible way ofworking and open
communications

Fingrid is known
for its exemplary
responsibility workand open externalreportingGood
governance

Balanced risk-return
ratio for the owners andfinancers
The continuity andprofitability of ouroperations through goodrisk management
Open and comprehensive
external reporting andcommunications

From the owners’
The company’s
and financers’ point
guidelines are in lineof view, Fingrid iswith legislation and the an open, stable andcompany’s personnel
productive company
has received training in
the rules and know the Fingrid is known
guidelines
for its high-quality
information security
Dividend income in
and ability to protectline with shareholders’ personal data andtargetsbusiness critical data

The personnel have the right to open,
up-to-date and active communication.
A high standard of communications will
promote our personnel’s understanding of the company’s values and goals.
Communication is also a way to ensurethat the personnel engage with thecompany. At Fingrid, information is, asHigh credit rating
High-level information
security andresponsibility for data

BUSINESS REVIEWNo significant
information security
and data protection
breaches resulting
in adverse business
impacts

REPORT OF THE BOARD OF DIRECTORSOne of Fingrid’s key values is openness.
Encouraging the sharing of informationand promoting a culture of openness areseen to improve the company’s productivity and customer service and to servein the best interest of society. First-classand deliberate sharing of information
boosts the learning of both individuals
and the organisation and understanding
the needs of stakeholders in all business
operations, which in turn serves to improve the company’s evolution and performance of its task as well as the qualityof customer service. Sharing information
can help merge the competence of different professionals across boundaries
and bolster the organisation’s practices,while also enhancing value creation forcustomers and society. At the same time,
it can help prevent unnecessary mistakes,
build reputation, and take control of theorganisation’s capabilities, knowledge
and skills.

FINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORTa rule, open and accessible to all in theshared information management system,
except for confidential information suchas personal data. The intranet and Teams
are additional interactive communication
channels that are open to everyone andenable the entire personnel to take partin dialogue.
Openness in our company is increasedby our flat hierarchy and straightforward
communication style. This allows for abold exchange of ideas and the expression of different opinions. Everyone isequal in the work community and the
management is closely involved in daily
business. We are informal and people
find it easy to approach one another. The
open culture that allows for discussion ismost clearly reflected in people’s sincere
willingness to help their colleagues.
Feedback is collected regularly and we
act upon it. By request of the personnel,
the company has developed, for instance,
remote work and working hour flexibility
in recent years. The latest personnel survey in autumn of 2022 indicated a wish to
improve information management. This
feedback has been acted upon, and thegoal is to clarify the information management practices in 2022 through 2023.

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CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

We monitor the development of our corporate culture; we asked our personnel
about the main features of our culture in
2019. The responses highlighted community, a team spirit, honesty, trust, responsibility and a relaxed mood. Personnel
are strongly committed to the values thatform the foundation of our corporate culture. The values were updated in 2020 incollaboration with the entire personnel,
and the personnel felt that the most important values were precisely openness
and responsibility.
The responses from personnel also wellreflect management’s objectives: the aim
is an open, collaborative, renewing andperformance-oriented corporate culture.
Collaboration helps reinforce joint action
and break down silos. Renewal is intended to promote the exchange of opinions
and continuous development of work
practices. Performance orientation aims
at streamlined processes and achieving
results.
In 2022, Fingrid’s culture was discussedwith the entire personnel during thecoaching day in the spring, where personnel representatives were invited in apanel discussion to share how they see
the company’s culture and values.

BUSINESS REVIEWOpen communications
The guiding principle for Fingrid’s internal and external communications is tobe open, active and up-to-date. Open
communications support the company’s
strategic business targets. The open communication policy was evident in 2022
particularly in Fingrid’s bold public statement concerning the electricity availability outlook over the winter of 2022/2023.
Fingrid openly communicated about thethreat scenarios which, if realised, could
potentially lead to outages. The company received positive feedback from theauthorities responsible for energy andsecurity of supply for raising this serious
topic early enough to allow preparing fora potential electricity shortage. More information on the precautions in case ofan electricity shortage can be found in
the Business Review.
We use multiple channels in our communications. The main channel is the company’s website www.fingrid.fi, where all of
the news and stock exchange releases,
investor information, newsletters andmagazines for customers, the company’s
events and brochures, and project news
for landowners are published. In 2022, thewebsite was renewed as a reaction to the
feedback from our stakeholders. Short-

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

cuts for landowners, new grid connectors
and reserve providers were added to help
these groups find the information they
are looking for more easily.
Our website contains a continuously
updated power system status page thatshows a real-time view of the power production and consumption in Finland. The
State of the power system page brings
together historical and real-time data andforecasts on the Finnish electricity system, including production, consumption
and transmission capacities in a single
user interface. In addition, the diagram
under the map shows the CO2 emission
values and Finland’s electricity area priceon the day-ahead market for both thehistorical and coming hours. In 2022, the‘State of the power system’ web page enjoyed a large following due to the publicdebate about the availability of electricity.

of feedback from stakeholders, which is
why Fingrid has launched a project for
updating the service. The aim is to createa more user-friendly information retrieval
channel.
Also Fingrid’s ‘Tuntihinta’ app for monitoring electricity spot prices gained
considerable popularity in the autumn.
In fact, it was one of the most popular
free apps in Finland.

Another key service for the electricity
market and customers is Fingrid’s open
data service (http://data.fingrid.fi) that
centrally distributes information about
Finland’s power system and electricity
market. Offering the data conveniently
in one place enables the developmentof new services and applications. The
open data service has received plenty

GOVERNANCE

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CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Feedback channels and reporting
breaches
Fingrid’s personnel and external stakeholders have access to several feedback
and reporting channels. The personnel
have been provided instructions for theiruse on Fingrid’s intranet and in induction
training. Feedback is collected throughpersonnel and stakeholder surveys.
Feedback can also be given personallyto supervisors or supervisors’ supervisors
based on the ‘one above’ principle. Shop
stewards or the HR unit can also be given
feedback.
If an activity is suspected to be in breachof Fingrid’s Code of Conduct or the law,and the information cannot be directly
conveyed to Fingrid’s contact person, aconfidential and independent whistleblowing channel is also available. The
channel is intended for use when a breachor crime is suspected which could concern, for example, accounting, conflictsof interest, corruption, the securities
markets or other financial irregularities.
All suspected breaches are investigatedconfidentially and professionally, withdiscretion. At Fingrid, the reports arehandled by a Legal Counsel, the GeneralCounsel and the President & CEO. Any

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORS

Case
Fingrid’s website knows all about theelectricity system
The energy markets are undergoing a majortransformation, and energy-related information is possibly more sought after thanever in Finland. As regards electricity markets, the TSO Fingrid’s ‘State of the powersystem’ web page is one source that strives
to meet this need. It offers a real-time
dashboard of the overall status of electricity production, consumption and transmission in Finland. The page also shows themarket price for electricity, as quoted hourlyin the power exchange.
Furthermore, many people perhaps find interesting to see the breakdown of electricity
production in different modes of generation.
Accordingly, the page shows how muchelectricity the hydro power, nuclear power
and wind power plants generate at each
moment. The informative map graph shows
how much electricity is transferred between
Finland and the neighbouring countries andin which direction.

FINANCIAL STATEMENTS

GOVERNANCE

Consumers interested in energy issues
are particularly keen followers of the‘State of the power system’ page. The
data is often quoted also in the debates on energy policies on platforms
such as Twitter.

Finland is a pioneer in making electricity market data publicly available in Europe. Other
TSOs have followed the suit and started tomake similar data available.

All the data shown on the page isbased on the open data produced
by Fingrid. This data is in a digital,
machine-readable format and freely
available to anyone.

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CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

reports are reported on to the company’s
Board of Directors, taking into accountprivacy protection. In 2022, Fingrid received two reports through the whistleblowing channel. They did not result inany further action. The reports did notstate any concrete cases of suspectedmalpractice, instead they concerned a request for information delivered to Fingrid
and statements made by the company’s
representatives in the media.
No incidents of bribery or other corruption, human rights violations or discrimination incidents occurred in Fingrid’s
operations in 2022. Teollisuuden Voima
Oyj has lodged a request for an investigation with the Energy Authority on alleged
neglect of the obligation to develop themain grid. Fingrid’s view is that the claims
are unfounded.
Information security and data protection
During 2022, Fingrid continued to invest
strongly in the personnel’s information
security skills as the personnel plays
a significant role in identifying and reporting different types of deviations. A
continuous investment in the personnel
has brought about clear improvements inFingrid’s information security level.

BUSINESS REVIEWWhen handling personal data, data protection must be ensured proactively andcomprehensively for the total lifespanof the personal data. The processing of
personal data must be systematic anddocumented and equipped with guidelines, and it must comply with the EU’s
General Data Protection Regulation andother legislation related to data protection. Fingrid has created its own written
guidelines on data protection, and dataprotection issues are also part of the online induction programmes. In addition,
targeted training and exercises are held
for people operating in different roles.
Data responsibility plays a key role inFingrid’s information security and dataprotection operating models.
No significant information security anddata protection breaches resulting in adverse business impacts were detected in
the year under review. One breach was
detected in connection with the privacyof landowners. The case concerned two
attached documents handed over to municipalities during an expropriation permit
process; some of the personal data contained in the documents had been missed
when blocking it out. The data was also
temporarily visible on the municipalities’
websites, until it was removed at Fingrid’s

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

request. According to Fingrid’s assessment, the case did not cause high risk forthe registered persons’ rights and it also
did not result in any major impact on Fingrid’s business operations. We modified
our practices concerning expropriation
permit processes to prevent any similar
incidents in the future.
The situation in Ukraine and the possibility of electricity shortage increased
measures related to preparedness andcontinuity of operations. Fingrid received
ISO 27001 information security certification in June 2022. A key developmentin personal data management was theimplementation of the required development measures indicated in the internal
audit of the centralised information exchange system, the Datahub, in 2021.

GOVERNANCE

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CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Code of Conduct
Fingrid holds key responsibility for theelectricity system and the main grid in
Finland and thereby the functioning of
the entire society. As such, it is important
to ensure the social acceptance of ouroperations through shared values and a
Code of Conduct.
Fingrid is committed to responsible andethical practices to promote sustainable
development. Every Fingrid employee
makes a commitment to work in compliance with our Code of Conduct, which
is based on the United Nations’ Global
Compact initiative and the principles
guiding business operations and humanrights. The Code of Conduct includes
Fingrid’s human rights commitment. We
expect the service and goods suppliers
who operate as our contractual partners
to comply with our Supplier Code of Conduct or other corresponding, separately
agreed on requirements.
Our managers and the entire work community ensure that behaviour is in linewith the Code of Conduct. One tool used
for this is our online induction course. We
require all of our employees to regularlycomplete the induction course. Fingrid
also has in place ethical principles for theuse of artificial intelligence.
Human rights and environmental due
diligence has for long been a part ofapplying Fingrid’s Code of Conduct andis also included in the Code of Conduct
document.
In 2022, we continued to monitor the
regulatory development on corporate
responsibility and human rights andupdated our human rights action plan.
To ensure our understanding of humanrights, we have previously carried out anassessment in compliance with the due
diligence process recommended in the
UN’s Guiding Principles on Business andHuman Rights. We arranged a campaign
themed ‘No inappropriate behaviour isallowed at our workplaces!’, including
training and news flashes for personnel
and training for supervisors and the OHS
Committee. In the 2022 personnel survey, employees gave a score of 4.4 (on ascale from 1 to 5) for the sustainability
compliance of Fingrid personnel.

Case
Fingrid receives an information security certificate
An information security certificate, a
key tool for defining information security
standards and maintaining excellent
information security practices, wasgranted to Fingrid in 2022. Fingrid’s
information security management has
been audited according to the requirements of the ISO 27001 standard, a testimony to the organisation’s good levelof information security.
The certificate in itself does not havemuch intrinsic value, but it is a valuable
tool when defining the level of information security. Following the criteria
readily available in the standard makes
it easier to monitor all the activities. In
many EU countries, actors critical to
the national security of supply, suchas transmission system operators, arerequired to have a certified information
security management system.

REPORT OF THE BOARD OF DIRECTORS“The strongest link in information security is
the Fingrid employee! Our people are alert inall things data security and if any deviations

Fingrid’s information security certification was implemented and audited by
Nixu Certification Oy. The audit included

BUSINESS REVIEW

20 Fingrid employees ranging fromexecutives to specialists. The information security certificate covers all
Fingrid’s operations and testifies tothe company’s willingness to continuously develop information security.

FINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORT

are detected, they are immediately reported,”says Information Security Manager Jyrki
Pennanen.

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CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

Compliance of the business operations
The aim of Fingrid’s management andleadership is to implement the strategy
approved by the Board of Directors andachieve the business goals responsibly
and sustainably, in an effective manner.
This requires the correct allocation offinancial and human resources and the
optimal utilisation of information.

Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Fingrid complies with laws and regulations. Good governance, risk management, sufficient controls and internal audit principles steer all of our operations.
Internal control and risk management
procedures enforcing good governanceare applied in management and leadership. The company stays up to date onamendments to laws and regulations
and ensures that principles, policies
and other guidance remain in line withthe applicable regulations. Business isplanned and managed in such a way that
we can demonstrate compliance with therequirements. This applies to the company’s internal operations, but also to
the services that the company sources
externally.
The main aspects of the goals and requirements of responsible and ethicaloperations, good governance and risk

BUSINESS REVIEW

management have been defined in thecompany’s values, Code of Conduct andinternal control and risk management
principles, which have been separately
approved by the Board of Directors.
The company complies with theBoard-approved insider guidelines andrelated party principles, as well as separately maintained guidelines concerning
conflicts of interest and judicial disqualification. Our goal is to ensure that theguidelines steering our business remain
up to date.
Financial steering
Steering measures include operating
guidelines and procedures that we follow
in order to ensure that key measures forrisk management, as defined by the management, are implemented effectively.
The process and steering descriptions
that support significant expenditure,decision-making and risk management,
and good governance and the quality ofoperations are maintained in the company’s guideline database within the sphereof automatic monitoring and a uniform
approval process.
The effectiveness of the steering is monitored regularly as part of management.
The Board of Directors and the audit

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

committee regularly monitor the company’s financial result and performance.
At the same time, they monitor whether
the company has sufficient processes
with which to assess risks and the effectiveness of steering in terms of financial
reporting at all levels of the organisation.
The audit committee supervises the company’s finances, financial reporting, risk

and continuity management, and internal
control and audit as part of the company’s
corporate governance.
Deficiencies in internal control are communicated in a timely manner to the parties responsible for corrective actions
and, if needed, to the management andBoard. Internal audit annually assesses

The key principles and policies steering the company’s operations and guidelines and plans supporting corporate
responsibility• Corporate Governance Code2020

• Land use and environment
policy• Procurement policy• Ensuring impartiality in preparing
matters and decision-making• HR policy• Management principles• Main grid development andmaintenance management
principles• Crisis communications
principles• Principles for managing
system security• Related party principles

GOVERNANCE• Internal control and risk management principles• Insider guidelines• Principles for promoting theelectricity market• Equal opportunity and nondiscrimination plan
• Code of Conduct• Corporate finance principles• Supplier Code of Conduct

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AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

the internal control of the financial reporting processes and the related processes
and procedures as part of its audits ofbusiness processes. The role of the internal auditor is held by an independent
third-party auditing body who reports
directly to the Board’s audit committee.
Anti-corruption and anti-terrorism
measures
Fingrid strictly opposes the grey economy
and abstains from money laundering or
corruption, such as blackmail and bribery. Fingrid requires each employee tocommit to this by adopting the Code of
Conduct and external contractual partners to commit by adopting the Supplier
Code of Conduct.
In addition, Fingrid has several operating
models in place to prevent corruption,bribery and other financial irregularities.
These are related to, among other things,
the use of funds, verifying invoices andreceipts, accepting gifts and hospitality,
verification of commitments, counterparty verification and sanctions screening.
Third-party service providers are usedin sanctions screening. In public procurement, exclusion criteria approved
by Fingrid are used, preventing the grey
economy and ensuring the suppliers’

BUSINESS REVIEW

reliability and operational capabilities.
Fingrid ensures that corruption, bribery
and other financial irregularities are prevented through up-to-date principles,
guidelines, steering and induction.
Managing risks and continuity
The nature and crucial importance ofFingrid’s operations to the functioning ofsociety are strongly reflected in the company’s risk and continuity management
culture and its development. Fingrid is responsible for the functioning of Finland’s
power system, which makes it fundamentally a risk management company. The
entirety of Fingrid’s risk management is
described on the company’s website andin the Annual Report’s Business Review.
Our objective is to ensure the continuity and effectiveness of our operations
through good risk management.
Internal audits
Internal control and audit create verified information on the efficiency of thecompany’s processes and the functioning
and legality of procedures. At Fingrid, theinternal audit is handled by an external
independent auditing body that meetsthe quality requirements for internal auditing, which, together with the Board of

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

Directors, decides on which areas will be
audited each year. The internal audit canbe applied to issues on many different
levels: for example on a general level tothe management of investment projects
or the completion of a single project. Audits are carried out to ensure everythingfrom the appropriateness of business todeveloping support functions’ processes.
The observations of internal audits arereacted on as decided by the Board of
Directors.
More on internal audits can be found in
the Corporate Governance Statement.
The internal audit reports for 2022
concerned grid maintenance, the gridconnection agreement process and international commitments. In one of them,
one significant audit observation wasmade regarding the description of thegrid connection process. An internal audit
on Nordic RCC A/S, a company whichstarted its operations on 1 July 2022 andis jointly owned by the Nordic TSOs, wasadditionally carried out as a joint Nordic
audit.
Finance – owners and financers
The principal aim of Fingrid’s capitalmanagement and grid asset management is to secure the company’s ability

GOVERNANCE

REMUNERATION REPORT

to conduct uninterrupted operations,retain value and to recover rapidly fromany exceptional circumstances. The company must have a solid capital structure
to support consistently strong credit
ratings, reasonable cost of capital andadequate dividend pay-out capability.
The company aims to maintain a credit
rating of at least ‘A-’.
During the year under review, Fitch Ratings (Fitch) raised Fingrid’s long-term
company rating from ‘A’ to ‘A+’ and unsecured senior debt rating from ‘A+’ to‘AA-’. The rating is the highest assigned
by Fitch to any regulated TSO in Europe.
Fingrid operates under financial regulation. Finland’s Energy Authority is responsible for the regulatory model determining
the reasonable rate of return allowed forFingrid and for implementing this model.
Fingrid’s dividends are distributed suchthat the shareholders receive a reasonable return on their invested capital, butalso such that the company’s financial
position remains stable. The guiding
principle for Fingrid’s dividend policy is
to distribute substantially all of the parent
company profit as dividends. When making the decision, however, the economic
conditions, the company’s near-term

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CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosuresinvestment and development needs aswell as the company’s prevailing financial
steering targets are always taken into account. Our goal is a balanced risk-return
ratio for the owners and financers.

“A critical aspect indisturbance control isthat all affected parties
adopt joint systems anduse the same terminology
for communication andWorking for security of supply
Fingrid is deeply involved with ensuring
Finland’s security of supply. Fingrid is acompany with duties critical to the national security of supply and must be able
to continue its operations even under theapplication of emergency legislation. Fingrid maintains a contingency plan as partof the system defence plan referred to in
the Finnish Electricity Market Act. Fingrid
is an active participant in the collaboration to develop the energy sector’s preparedness activities, and Fingrid’s CEO isthe chairman of the national Emergency
Supply Council.

maintaining situationalawareness, with prearranged contents,” says
Control Room Manager
Arto Pahkin from Fingrid.

Case
RESPA 22 concludes a multi-yearseries of exercises
In September 2022, organisations
critical to the security of supply in theHelsinki metropolitan area conducted
an exercise simulating an electricity
distribution disturbance in the main
grid and distribution networks. The
two-day exercise involved a largescale disturbance that paralysed thebasic functions of society for a lengthy
time while the participants attempted
to resolve the situation.
The parties affected by a major electricity distribution disturbance include
various authorities, energy sector op-

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORT

erators, and other businesses. A joint
overview and situational awarenessmust be created and shared rapidly.
Communication tools were used effectively during the exercise, and the organisations were able to monitor eachother’s communications and share
information in their own communication channels.
RESPA 22 was the final part of a series of exercises, known as JÄÄTYVÄ,held in various parts of Finland. The
series began in the Kuopio region in2017, and additional exercises wereconducted in Lappeenranta, Turku,
Oulu and Seinäjoki.

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Fingrid’s indicators related to good governanceIndicators, target levels and results related to good governance

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility

Indicator

Description

Code of Conduct

Target monitoring: how we did in 2022

UN’s SDG

Personnel’s view on
responsibility of ways of working

Personnel surveys:score for responsible
operations (1–5)>4Personnel survey grade 4.4 on a scale of 1–5

Up-to-dateness of principles
and policies steering operations

Principles and policies
updated according to theannual cycle

Everything updated at least every two years andthe company’s operating practices comply withthese.

The review of the ICT policy was rescheduled, due
to changes in operations, to 2023 instead of 2022.
Otherwise, all principles and policies are updated atleast according to the annual cycle.

No critical shortcomings identified in internal
audits

One significant audit observation was made in internal
audits regarding the description of the grid connection
process

No significant realised risks resulting from thecompany’s deficient preparedness. Continuity
exercises carried out 100% according to theplanned schedule.

No significant risks related to poor preparedness
materialised and the continuity exercises were carriedout

Ensure that business critical
data can only be accessedby those who need it

No significant information security and dataprotection breaches resulting in adverse
business impacts

No significant information security and data protection
breaches resulting in adverse business impacts
detected

Credit rating

Credit rating (S&P, Fitch) at
least ‘A-’ (at least from one)

Company’s credit rating at a level that ensures
the availability of financing at an affordable cost

The minimum credit rating level was exceeded

Dividend payout capacity

Moderate dividend income
for owners that takes into
account the company’s
financing needs

Absolute amount of dividend and share ofparent company’s profits (%)

Dividend income in line with shareholders’ targets wasachieved

Good governanceCorporate responsibility GRI
and SASB disclosures

2025

Internal audits

Risk management, continuity management
Risk management, continuity
management

Protection of business criticaland personal data (personaldata, grid model)
Finance – owners and financers

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

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CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

05
Corporate responsibility
GRI and SASB disclosures

Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Reporting principles
In order to ensure transparency andcomparability, Fingrid is in compliancewith the Global Reporting Initiative (GRI)
guidelines. The boundaries of the socialand environmental data do not include theassociated companies. The information
on reporting was verified by an independent third party, except for the preliminary
review of the EU Taxonomy Regulation
reporting. Requirements for corporate
responsibility reporting by state-owned
companies and environmental, social andgovernance (ESG) reporting guidance
for stock exchanges are also taken into
account. A Communication on Progress(COP) report in compliance with the UN’s
Global Compact initiative was preparedseparately from the Annual Report. The
business risks and opportunities related
to climate change are disclosed on Fin-

BUSINESS REVIEW

grid’s website, adapted from the TCFD
framework (Task Force on Climate-related Financial Disclosures).
The Report of the Board of Directors also
includes reporting on Fingrid’s non-financial information. The preparations
for disclosure in alignment with the EU
Taxonomy Regulation continued in 2022.
The taxonomy is designed to support
sustainable finance by channelling money into projects that are sustainable interms of climate change and the environment. The reporting obligation under
this regulation is not, for the time being,
obligatory for Fingrid, but the company
reports in compliance with the regulation
on a voluntary basis. The transmission ofelectricity is classified as taxonomy-eligible, i.e. sustainable economic activity
eligible to be included in the taxonomy

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CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosuressystem, with technical assessment criteria in place for assessing compliance.
In terms of climate change mitigation,
the transmission of electricity has been
defined as an enabling activity with which
other sectors’ greenhouse gas emissions
can be significantly reduced. In terms ofadapting to climate change, the criteria
concern the electricity transmission’s
preparedness for the risks related tophysical changes in the climate system.
In 2022, the taxonomy-related efforts
focused on the required disclosures andpreliminary calculations of the proportions of Fingrid’s operations that are
taxonomy-eligible and meet the assessment criteria related to climate change
mitigation. The three key performanceindicators (KPIs) required by the taxonomy were calculated: turnover, capital
expenditure and operating expenses. The
starting point was that the transmissionof electricity is classified sustainable economic activity eligible to be included thetaxonomy system. However, the peak load
capacity income from Fingrid’s operations
is not eligible for the taxonomy systembecause it is not directly related to thetransmission and use of electricity in themain grid. The Datahub and the guaranteeof origin certificate service are also not directly linked with electricity transmission,

BUSINESS REVIEW

but they were classified to be eligible forand aligned with the taxonomy because
they have positive impacts on promoting
climate change mitigation. The Datahub
and the guarantee of origin certificatesaccounted for 0.9% of Fingrid’s total turnover in 2022. In contrast to the previous
years, Fingrid recognises some of thecongestion income as turnover in 2022.
The congestion income was classified tobe eligible under the taxonomy, as it arises
from the allocation of electricity transmission capacity owned by Fingrid and is an
essential aspect of grid operations.
When assessing the taxonomy-alignment of Fingrid’s operations, an essential
criterion is met in that the transmission
system is an interconnected European
system. However, a Fingrid operation is
not compliant with the taxonomy criteria
if it includes infrastructure dedicated tocreating a direct connection or expanding
an existing direct connection between asubstation or network and a power production plant that is more greenhousegas intensive than 100 gCO2e/kWhmeasured on a life cycle basis. Suchconnections are rare and were ruled outof the calculations of taxonomy-aligned
operations. Fingrid’s reserve power activities were also ruled out of the calculations, on the same grounds.

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

Another aspect of the assessment wasto verify that Fingrid’s operations contributing significantly to climate change
mitigation do not cause serious harmto the other environmental taxonomy
targets applicable to electricity transmission. These targets are related to climate adaptation, resource efficiency andpromotion of circular economy, pollution
prevention as well as protection of biodiversity and ecosystems. Furthermore,
it was verified that Fingrid’s operations
comply with the minimum safeguards
for social sustainability as defined in theTaxonomy Regulation and have in placeappropriate procedures for supervisingsocial sustainability compliance both inits own operations and in its business
relationships, in compliance with an appropriate due diligence obligation.
According to the preliminary assessmentof the operations in 2022, a substantial
proportion of Fingrid’s operations is eligible for the taxonomy and aligned withthe taxonomy criteria and significantly
mitigates the greenhouse gas emissions
from other sectors. Fingrid’s taxonomy
KPIs for climate change mitigation are
as follows:

GOVERNANCE

REMUNERATION REPORT• Taxonomy-eligible turnover 99.6%
and taxonomy-aligned turnover 99.2%• Taxonomy-eligible proportion ofcapital expenditure (CapEx) 100%and taxonomy-aligned proportion ofcapital expenditure (CapEx) 98.2%• Taxonomy-eligible proportion of operating expenditure (OpEx) 100%and taxonomy-aligned proportion ofoperating expenditure (OpEx) 83.5%”

Substantial part ofFingrid’s operations
mitigates the green
house gas emissions
from other sectors.

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MATERIAL TOPICS FORFINGRID

MANAGEMENT PERFORMANCE
PROCEDURE AT FINGRIDFINGRID’S MANAGEMENT INDICATORS

MATERIAL TOPICS FOR FINGRID’SOPERATIONS

Reliability and security of theelectricity system

Principles for managing system security
Principles for crisis communications
Reserve policy
Contingency policy
Reserve power plant management policy
Company security policy

System security: Transmission reliability in the grid
Lost-time injuries frequency

GRI 203: Indirect economic impacts
Electricity availability and transmission
reliability
Demand-side management
System efficiency
Research and development
GRI 403: Occupational health and safety
GRI 416: Customer health and safety

Connecting renewableelectricity production to theelectricity system

Main grid development and maintenancemanagement principles
Grid planning, construction, maintenancemanagement policies

Connecting emission-free production to the grid
Project’s degree of completion:
Third AC connection
to Sweden, North–South transmission: Forest Line, North–South transmission:
Lake Line IITransmission losses, CO2 emissions
Energy efficiency, energy savings
SF6 emissions

GRI 2: Strategy, policies and practises
GRI 201: Economic performance
GRI 302: Energy
GRI 305: Emissions

Information security and dataprotection

Digital security policy
Data management policy
Data protection policy
Document management policy

Protection of business criticaland personal data
(personal data, grid model)

GRI 418: Customer privacy

Well-functioning electricity
marketPrinciples for promoting the electricity market
Loss power procurement policy
Transmission capacity allocation and congestion
management policy

Well-functioning markets: Maintaining Finland as a single pricearea

GRI 2: Stakeholder engagement

Occupational health andsafetyFingrid Oyj’s occupational health and safety
management
Occupational safety handbook

LTIF: Combined lost time injury frequency (own personnel andservice providers)

GRI 403: Occupational health and safety
GRI 416: Customer health and safety

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Safety of the main grid: Number of accidents to the public

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MATERIAL TOPICS FORFINGRID

MANAGEMENT PERFORMANCE
PROCEDURE AT FINGRIDFINGRID’S MANAGEMENT INDICATORS

MATERIAL TOPICS FOR FINGRID’SOPERATIONSBusiness ethics andcompliance

Fingrid’s Code of Conduct
Management principles
Internal control and risk management principles
Ensuring impartiality in preparing matters anddecision-making
Related party principles
HR policy

Score for responsible operations in personnel survey
Up-to-dateness of principles and policies steering operations
Internal audits
Risk management, continuity management
Credit rating (S&P, Fitch)
Dividend payout capacity: Moderate dividend income forowners that takes into accountthe company’s financing needs
Green financing: Total amount in company’s financing
arrangements
Financial efficiency: Development of costs in relation to thegeneral price level
Effective tax rate: Paying taxes according to Finland’s corporate
income tax rate

GRI 2: Strategy, policies and practises
GRI 406: Non-discrimination
GRI 205: Anti-corruption and anti-bribery
GRI 415: Public policy
GRI 206: Anti-competitive behaviour
GRI 201: Economic performanceGRI 207: Tax

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

Insider guidelines
Corporate finance principles
Financing policy

Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Trust of stakeholders

Fingridin toimintaperiaatteet
Fingrid’s Code of Conduct
Land use and environment policy
Communications policy

Satisfaction of landowners: Satisfaction with the managementof investment projects
Company’s reputation among different stakeholders:
Stakeholder surveys
Willingness of service providers to work with Fingrid:
Functioning of service provider market

GRI 2: Stakeholder engagement
Local communities

Customer satisfaction

Fingrid’s Code of Conduct
Communications policy

Customer satisfaction: cNPS
Affordable grid service fees: ENTSO-E price comparison

GRI 201: Economic performanceGRI 2: Stakeholder engagement

Responsible sourcing
practices

Fingrid’s Supplier Code of Conduct
Procurement policy

Deviations or problems in contractor obligation or employment
relationship matters

GRI 2: Strategy, policies and practises
GRI 204: Procurement practices

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MATERIAL TOPICS FORFINGRID

MANAGEMENT PERFORMANCE
PROCEDURE AT FINGRIDFINGRID’S MANAGEMENT INDICATORS

MATERIAL TOPICS FOR FINGRID’SOPERATIONS

Impacts of transmission lines
on land use and scenic values

Land use and environment policy

Utilising existing transmission line routes
Positive environmental impacts of technical solutions

GRI 304: Biodiversity

Competence and personnel
well-being

Management principles
HR policy
Equal opportunity and non-discrimination plan

Finland’s best workplace: Result of personnel survey
Healthy and happy personnel: Absences due to illness, Retired
Diverse work community: Equal opportunity, non-discriminationand diversity

GRI 2: Activities and workers
GRI 401: Employment
GRI 404: Training and education
GRI 405: Diversity and equal opportunity

Fingrid’s corporate responsibility
management and targets

Protection of nature values
and biodiversity

Land use and environment policy

Completed biodiversity improving projects
Environmental deviations

GRI 304: Biodiversity

Environmental responsibility

Circular economy andmaterial efficiency

Land use and environment policy

Recycling rate
Utilisation rate
Measures to reduce the environmental impact of office work

GRI 306: Waste

ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT

Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

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REMUNERATION REPORTCORPORATE RESPONSIBILITY

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Independent accountant’s assurance report
To the Management of Fingrid Oyj

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Scope
We have been engaged by Fingrid Oyj(hereafter Fingrid) to perform a ‘limited
assurance engagement,’ as defined byInternational Standards on Assurance
Engagements, and by AA1000AS v3
Standard (limited assurance according
to the AA1000AS standard, moderate
assurance), hereafter referred to as theengagement, to report on sustainability
information in Fingrid’s Annual Report
2022 (the “Subject Matter”) for the period 1.1.-31.12.2022. The Subject Matterincludes corporate responsibility information defined in more detail in thecorporate responsibility and sustainable
development sections of Fingrid’s annual
report, and in the GRI and SASB indices,
as well as Global Compact reporting information. The Subject Matter excludes
taxonomy reporting and its indicators.
The assignment corresponds to the type2 assignment of the AA1000AS standard,
where the assurance assignment includes
not only the AA Principles but also theverification of the reliability and qualityof the information.

BUSINESS REVIEW

Criteria applied by Fingrid
In preparing the sustainability information in the Annual Report 2022, Fingrid
applied the Global Reporting Initiative(GRI) Sustainability Reporting Standards,
Communication on Progress (COP) reporting guidelines of the UN Global Compact initiative, Sustainability AccountingStandards Board’s (SASB) industry-specific Electric Utilities & Power Generators guidelines and Fingrid’s own internalreporting principles (the “Criteria”). As
a result, the Subject Matter information
may not be suitable for another purpose.
Fingrid’s responsibilities
Fingrid’s management is responsible forselecting the Criteria, and for presenting
the Subject Matter in accordance withthat Criteria, in all material respects. This
responsibility includes establishing andmaintaining internal controls, maintaining
adequate records and making estimatesthat are relevant to the preparation of thesubject matter, such that it is free frommaterial misstatement, whether due tofraud or error.
Ernst & Young’s responsibilities
Our responsibility is to express a conclusionon the presentation of the Subject Matterbased on the evidence we have obtained.

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

We conducted our engagement in accordance with the International Standard
for Assurance Engagements Other Than
Audits or Reviews of Historical Financial
Information (‘ISAE 3000’), and in accordance with AccountAbility’s assurance
standard (AA1000AS v3), and the termsof reference for this engagement asagreed with Fingrid on 22.8.2022. ISAE
3000 standard require that we plan andperform our engagement to obtain limited
assurance about whether, in all material
respects, the Subject Matter is presented
in accordance with the Criteria, and toissue a report. The AA1000AS standard
requires the planning and execution of
the assurance engagement performed ina way that it provides limited assurance
as to whether the corporate responsibility
information complies with AccountAbility’s reporting principles (AA1000) andwhether the information is reliable and ofhigh quality. The nature, timing, and extent of the procedures selected depend
on our judgment, including an assessment of the risk of material misstatement,
whether due to fraud or error.
We believe that the evidence obtained issufficient and appropriate to provide a basis for our limited assurance conclusions.

GOVERNANCE

REMUNERATION REPORTOur Independence and Quality
Control
We have maintained our independence
and confirm that we have met the requirements of the Code of Ethics forProfessional Accountants issued by theInternational Ethics Standards Board
for Accountants, and have the requiredcompetencies and experience to conduct
this assurance engagement.
Ernst & Young also applies International
Standard on Quality Control 1, Quality
Control for Firms that Perform Audits andReviews of Financial Statements, andOther Assurance and Related Services
Engagements, and accordingly maintains
a comprehensive system of quality control including documented policies andprocedures regarding compliance withethical requirements, professional standards and applicable legal and regulatory
requirements.
Description of procedures performed
Procedures performed in a limited assurance engagement vary in nature andtiming from, and are less in extent thanfor a reasonable assurance engagement.
Consequently, the level of assurance
obtained in a limited assurance engagement is substantially lower than the as-

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CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosuressurance that would have been obtained
had a reasonable assurance engagement
been performed. Our procedures were
designed to obtain a limited level of assurance on which to base our conclusionand do not provide all the evidence thatwould be required to provide a reasonable level of assurance.
Although we considered the effectivenessof management’s internal controls when
determining the nature and extent of ourprocedures, our assurance engagement
was not designed to provide assurance
on internal controls. Our procedures did
not include testing controls or performing
procedures relating to checking aggregation or calculation of data within IT
systems.
A limited assurance engagement consistsof making inquiries, primarily of persons
responsible for the Subject Matter, andapplying analytical and other appropriate
procedures.

BUSINESS REVIEWOur procedures included:a.	 To develop the knowledge and		 understanding of Fingrid’s material		 sustainability topics, organization
		 and activities,b.	 Interviews with senior manage		 ment to understand Fingrid’s		 sustainability management,c.	 Interviews with personnel respon		 sible for gathering and consolidation
		 of the Subject Matter to under		 stand the systems, processes and		 controls related to gathering and		 consolidating the information,d.	 Assessing sustainability data		 from internal and external sources
		 and checking the data to reporting		 information on a sample basis to		 check the accuracy of the data,e.	 Performing recalculation of re		 ported information and evaluating		 the correctness of underlying
		 data and narrative disclosures,
f.	 Reviewing AccountAbility (AA1000)
		 Principles (participation of stake		 holders, determination of relevant		 topics of corporate responsibility,		 meeting the expectations of		 stakeholders and impact assess		 ment) as part of the evaluation of		 the implementation of the afore		 mentioned measures.

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

We also performed such other procedures as we considered necessary in thecircumstances.
Limitation of the Assignment
In a limited assurance assignment, themethods of obtaining evidence are more
limited than in a reasonable assurance
assignment, which is why more limited
assurance is obtained than in a reasonable assurance assignment.
We have designed and performed theengagement in such a way that we obtainenough evidence for limited assurance on
which to base our conclusions, and thus
it does not provide all of the evidence
required to obtain reasonable assurance.
The scope of the assignment covers
corporate responsibility information for
the reporting period 1 January 2022 – 31
December 2022 and does not include
corporate responsibility information fromprevious reporting periods. The assurance covers the Subject Matter previously defined in the section Scope, and theassurance does not apply to other information published in the annual report.
Conclusion
Based on our procedures and the evidence obtained, we are not aware of

GOVERNANCE

REMUNERATION REPORT

any material modifications that should
be made to the Subject Matterfor theperiod 1.1-31.12.2022, in order for it to bein accordance with the Criteria.
Applying AccountAbility (AA1000) principles of corporate responsibility:• Involvement of stakeholders:
Based on the assurance work done
and the evidence we have obtained,
we have not come across any facts,
based on which it would be reasonable to assume that essential stakeholders were not taken into accountin the measures related to the participation of stakeholders or thatthe principle of the participation of
stakeholders was not taken into account in the development of corporate responsibility procedures. In its
annual report, Fingrid has identified
its key stakeholders, set goals related to the involvement of stakeholders and reported on measures toinvolve stakeholders. Stakeholder
group work is monitored regularly
at the management team and board
level.
• Determining the essential topics
of corporate responsibility: Basedon the assurance work done andthe evidence we have obtained, we
have not come across any facts,

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CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

based on which there is reason toassume that the determination ofFingrid’s materiality topics of corporate responsibility does not givea fair picture of the material topics
regarding corporate responsibility.
Fingrid has carried out a materiality
analysis to identify key impacts andpublished its results in its annual
report. The materiality analysis has
been carried out in accordance with
the GRI standard and the topics
have been prioritized based on thesignificance of the effects of Fingrid’s operations and the views of
stakeholders. Fingrid regularly monitors stakeholders’ views by conducting stakeholder surveys. The
results are also used to identify key
responsibility themes. Both shortterm and long-term goals have been
set for each relevant topic, which
are monitored and reported onusing appropriate metrics.
• Responding to stakeholders’ expectations: Based on the assurance work done and the evidence
we have obtained, we have notcome across any facts that would
give a reason to assume that Fingrid has not applied the principleof responding to stakeholders’ expectations with regard to the topics

BUSINESS REVIEW

to be reported. In its annual report,
Fingrid has identified the expectations of various stakeholders anddescribed the measures taken tomeet them.
• Assessment of impacts: Basedon the assurance work done andthe evidence we have obtained, we
have not come across any facts
that would make it reasonable toassume that Fingrid has not measured, monitored and evaluated its
impacts on the ecosystems surrounding the company. Fingrid’s essential effects, indicators and goalmonitoring are described in theannual report for each area of corporate responsibility.
Quality and reliability of corporate
responsibility data
Based on the assurance work done andthe evidence we have obtained, we havenot come across any facts that would givea reason to assume that the presented
corporate responsibility information is
not reliable and high-quality in essential
parts based on the reporting criteria, ordoes not give an adequate and correct
picture of Fingrid’s corporate responsibility in essential parts.

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

Recommendations
Based on the assurance work we havedone and the evidence we have obtained,
we are not aware of any significant changes or additions that should be made to
the Subject Matter in order for it to meetthe requirements of the Criteria.
• Fingrid’s responsibility reporting
processes are structured and systematic, and data producers haveclear internal reporting guidelines.
The internal data review processes
are partially carried out. However,
we recommend a clearer process
for reviewing the data and a breakdown of responsibility between thedata producer and the reviewer inorder to identify possible errors especially with Scope 3 emissions,waste, personnel and renewableenergy production data.
• Fingrid transparently informs about
the estimation methods and emission factors used in the calculation of CO2e emissions and carbon
handprint. However, we recommend
developing and expanding the calculation to better cover Scope 3
category emissions.

GOVERNANCE

REMUNERATION REPORT• The calculation and consolidation of the produced corporate responsibility data includes manual
work. We recommend considering
the development of tools to reducemanual work and to include, for example, automatic data validations toimprove data quality and reliability.
Helsinki, 7 March 2023
Ernst & Young Oy
Authorized Public Accountant Firm

Mikko Rytilahti
Authorized Public Accountant

Nathalie Clément
Leader of Climate Change & Sustainability Services

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ANNUAL REPORT 2022

Standard

GRI content

Location

Additional information and omissions

Report of the Board of Directors

Fingrid is a public limited company operating in Finland. Fingrid’s headquarters is
located in Helsinki

The organization and its reporting practices
CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

GRI 2-1

Organizational details

GRI 2-2

Entities included in the organization’ssustainability reporting

The Corporate Responsibility and Sustainable Development Report covers
information on the Fingrid Group. The Group has two subsidiary companies,
Finextra Oy and Fingrid Datahub Oy, which are 100% owned by Fingrid Oyj

GRI 2-3

Reporting period, frequency andcontact point

The reporting period covers the financial period, from 1 January to 31 December
2022. The Corporate Responsibility and Sustainable Development Report ispublished every year. Additional information: viestinta@fingrid.fi

GRI 2-4

Restatements of information

Any changes to information from previous reports are stated in connection withthe relevant information.

GRI 2-5External assurance

Environmental responsibility
Social responsibility
Good governanceIndependent assurance statement

Corporate responsibility GRI
and SASB disclosures

Independent third-party assurance of the Corporate Responsibility andSustainable Development Report is conducted by Ernst & Young Oy. A limited
assurance engagement covers all information presented in the Report.

Activities and workers
GRI 2-6

GRI 2-7

BUSINESS REVIEW

Activities, value chain and other business
relationships

Fingrid’s corporate responsibility
management and targets
Report of the Board of Directors
Supply chain

Length of above and undergroundtransmission and distribution lines

Business Review 2022: Main grid

The main grid owned by Fingrid encompasses approximately 14,500 kilometresof 400-, 220- and 110-kilovolt transmission lines, plus 121 substations, and 3
HVDC stations.

Allocation of CO2e emissions allowancesor equivalent, broken down by emissions
trading scheme

Greenhouse gas impacts of Fingrid’s
operations
Report of the Board of Directors

Fingrid’s reserve power plants are included in the European Union’s emissions
trading system. The accuracy of the measuring and reporting systems for fuelconsumption is verified by an accredited emissions trading verifier. A total of
6,006 (5,494) units (tCO2) of emission allowances were returned, 100% of
which consisted of purchased emission right units. Fingrid has not been granted
free-of charge emission rights for the emissions trade period 2021–2030.
Purchased emission right units amounted to 4,000 in 2022. Emissions trading
had minor financial significance for Fingrid.

Employees

Business Review 2022: Personnel

Fingrid has very rarely working contracts with non-guaranteed working hours.
They can be used for students working occasionally or retired employees
who may assist the company in specific projects. Fingrid does not keep nonguaranteed working hours contracts separately, but they are included in thegroup of part-time employees.

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

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GRI content

Location

Additional information and omissions

Working hours of the personnel and service
providers

Diverse work community

Reporting covers the service providers’ working hours included in Fingrid’s
internal monitoring. In 2022, grid building, and maintenance operations
amounted to roughly 1 092,000 work hours, equaling 642 man-years
In addition, in Fingrid’s premises external workforce of different service providers
are working in the reception services, guarding, cleaning and IT-support on adaily basis. Occasionally external service providers’ employees work in facility
maintenance and project-based consulting tasks. The amount of these service
providers’ employees is not significant and working hours are not reported.

Workers who are not employees

Diverse work community
Supply chain

GRI 2-9

Governance structure and composition

Corporate Governance Statement

GRI 2-10

Nomination and selection of the highest
governance body

Corporate Governance Statement

GRI 2-11

Chair of the highest governance body

Corporate Governance Statement

GRI 2-12

Role of the highest governance body inoverseeing the management of impacts

Corporate Governance Statement
Strategic corporate responsibility
management

GRI 2-13

Delegation of responsibility for managing
impacts

Corporate Governance Statement
Strategic corporate responsibility
management

GRI 2-14

Role of the highest governance body insustainability reporting

Corporate Governance Statement

GRI 2-15

Conflicts of interest

Corporate Governance Statement

GRI 2-16

Communication of critical concerns

Corporate Governance Statement
Feedback channels and reporting breaches

Activities and workers

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

GRI 2-8

Governance

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

Fingrid’s responsibility reporting is based on the materiality assessment.
It is evaluated annually, as a part of the strategy process, to ensure that
it is up to date and the Executive Management Group confirms the mostimportant issues concerning Fingrid’s operations as well as the adequacy ofthe management approach for these issues. Board of Directors reviews themateriality assessment and approves it as a part of the strategy. The Executive
Management Group reviews and approves the Corporate Responsibility andSustainable Development Report before its publication. In the Review ofBoard of Directors relevant non-financial information is disclosed based on themateriality assessment.

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GRI content

Location

Additional information and omissions

GRI 2-17

Collective knowledge of the highest
governance body

Corporate Governance Statement

Members of the Board of Directors have the adequate knowledge on thematerial sustainable development in the sector and the Board of Directors
regularly monitors sustainable development topics.

GRI 2-18

Evaluation of the performance of thehighest governance body

Corporate Governance Statement

The Board of Directors evaluates the activities annually and the process is
described in the Corporate Governance Statement. The evaluation includes
corporate responsibility and sustainable development related topics.

Fingrid’s corporate responsibility
management and targets

GRI 2-19

Remuneration policies

Remuneration Report

The reports account for the principles of remuneration policies and systems for
the Board of Directors and senior executives.

Environmental responsibility

GRI 2-20

Process to determine remuneration

Fair remuneration

In remuneration Fingrid complies with the principles set forth by the state’s
and other owners’ policies. Remuneration principles are described in the
Remuneration Policy which is approved in the Annual General Meeting in
2020. Remuneration principles of the State are defined in the Government
Resolution on the State Ownership Policy 8 April 2020. Other owners’ views on
remuneration are confirmed annually when making decisions on remuneration
first in the Board’s Remuneration Committee and after that in the Boardof Directors. In the Annual General Meeting the actual remuneration andremuneration principles are reviewed. In order to support decision-making, theBoard of Directors commissions annually an independent consulting company(during last years EVLI Alexander Incentives) to conduct a remuneration surveyof management, where Fingrid’s management compensations are compared torespective companies.

GRI 2-21

Annual total compensation ratio

Remuneration Report

ANNUAL REPORT 2022

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT

GovernanceSocial responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Strategy, policies and practices
GRI 2-22

Statement on sustainable development
strategy

Business Review 2022: Review by the
President & CEO

GRI2-23

Policy commitments

Compliance of the business operations
Managing risks and continuity
Code of Conduct

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

Human rights and environmental due diligence has for long been a part ofapplying Fingrid’s Code of Conduct.
The precautionary principle is included in Fingrid’s Code of Conduct andthe UN’s Global Compact initiative, which Fingrid has committed to. The
environmental impacts of new transmission lines are determined according
to an environmental impact assessment procedure as required under thelegislation on the EIA procedure or, for projects with minor impacts, by meansof an environmental study. Fingrid’s reserve power plants are subject to an
environmental permit. Fingrid’s Code of Conduct includes a commitment torespect human rights.

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CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENTGRI content

Location

Strategy, policies and practices
GRI 2-24

Embedding policy commitments

Fingrid’s corporate responsibility
management and targets
Good governance

GRI 2-25

Processes to remediate negative impacts

Fingrid’s corporate responsibility
management and targets
Supply chain
Good governance

GRI 2-26

Mechanisms for seeking advice and raisingconcerns

Feedback channels and reporting
breaches

GRI 2-27

Compliance with laws and regulations

No significant fines or sanctions during the reporting period.

GRI 2-28

Membership associations

ENTSO-E (European Network of Transmission System Operators – Electricity),
Finnish Energy Industries, Cigré (International Council on Large Electric
Systems), FIBS Corporate Responsibility Network

Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Additional information and omissions

Fingrid’s personnel has access to several feedback and reporting channels.
The personnel have been provided instructions for their use. Fingrid also has aconfidential and independent reporting channel open for external stakeholders,
who can make reports anonymously. Fingrid requires its suppliers to commit
responsible and ethical business conduct through Supplier Code of Conduct,
which realization is monitored using a risk-based approach.

Stakeholder engagement
GRI 2-29

Approach to stakeholder engagement

GRI 2-30

Collective bargaining agreements

Fingrid complies with the collective labour agreement for salaried employees
and senior professional employees in the energy industry. These agreements
cover the entire personnel excluding top management

Company’s contractors’ personnel coveredby the collective labour agreements bycountry

According to the Act on the Contractor’s Obligations and Liability when Workis Contracted Out, the entire chain of contractors at Fingrid’s work sites is
obligated to operate in compliance with applicable Finnish collective labour
agreements both regarding Finnish and non-Finnish workforce

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORS

Stakeholders and customers

FINANCIAL STATEMENTS

GOVERNANCE

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GRI content

Location

Additional information and omissions

GRI 3-1

Process to determine material topics

Material corporate responsibility topics andFingrid’s corporate responsibility targets

Fingrid’s materiality analysis is evaluated annually, as a part of the strategy
process, to ensure that it is up to date and the Executive Management Groupconfirms the most important issues concerning Fingrid’s operations as well as
the adequacy of the management approach for these issues. The assessment of
the economic, social and environmental impacts of Fingrid’s operations, as wellas the impacts on stakeholders’ decision-making, takes into account the strong
connection between sustainability, strategy and business and its impact on
Fingrid’s ability to create value, as well as the value-chain-wide requirements of
the GRI reporting guidelines. A thorough materiality assessment was conducted
in 2014, which included a broad background analysis, meetings attended bydozens of experts from Fingrid, and a stakeholder survey sent out to roughly
700 individuals. In 2022, a separate corporate responsibility survey was again
conducted for key stakeholders

GRI 3-2

List of material topics

Material corporate responsibility topics andFingrid’s corporate responsibility targets

The matters prioritized as material for Fingrid and their corresponding GRI
reporting aspects are presented in the Corporate Responsibility and Sustainable
Development Report.

GRI 3-3Management of material topics

Material corporate responsibility topics andFingrid’s corporate responsibility targets
Fingrid’s environmental responsibility
indicators
Fingrid’s social responsibility indicators
Fingrid’s indicators related to good
governance
Strategic corporate responsibility
management

Material topics

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

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Economic responsibility standards

Standard
CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility

GRI content

Location

Economic performanceGRI 201-1

Direct economic value generated anddistributed, €1,000

Generation of economic value

GRI 201-4

Financial assistance received fromgovernment, €1,000

Generation of economic value

Indirect economic impacts
GRI 203-2

Significant indirect economic impacts

Reliability and security of the electricity
systemEconomy – society
Customers

Good governanceCorporate responsibility GRI
and SASB disclosures

Additional information and omissions

Procurement practices
GRI 3-3Management of material topics

Supply chain

GRI 205-1

Operations assessed for risks related tocorruption

Anti-corruption and anti-terrorism
measuresManaging risks and continuity

At the company level several internal control and risk management models arein place to prevent corruption, bribery and other financial irregularities. Anticorruption is a part of Fingrid’s Code of conduct and Fingrid’s Supplier Codeof Conduct. One of the risks annually reported to the Board of Directors is risk
for biased corporate culture covering actions against the company’s Code of
Conduct and values.

GRI 205-2

Communication and training about anticorruption policies and procedures

Code of Conduct
Supply chain

Our managers and the entire work community ensure that behaviour is in linewith the Code of Conduct. One tool used for this is our online induction course.
We require all our employees to regularly complete the induction course.

GRI 205-3

Confirmed incidents of corruption andactions taken

Feedback channels and reporting
breaches

No incidents of corruption during the reporting period.

Anti-corruption

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

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GRI content

Location

Additional information and omissions

Anti-competitive behaviour
GRI 206-1

Legal actions for anti-competitive behaviour, Feedback channels and reporting
anti-trust, and monopoly practices
breaches

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Teollisuuden Voima Oyj (“TVO”) has lodged a request for an investigation with
the Energy Authority on 25 May 2022 related to the claims by TVO that Fingrid
has neglected its obligation to develop the main grid as stated in the Finnish
Electricity Market Act and/or other applicable legislation, and that, as a result,it has placed unlawful restrictions on connecting the Olkiluoto 3 nuclear power
plant to the grid. Fingrid’s view is that the claims made by TVO are unfounded.

Tax
GRI 207-4

Country-by-country reporting

Tax footprint

Electricity availability and transmission reliability
GRI 3-3Management of material topics

Reliability and security of the electricity
systemDemand-side management
GRI 3-3Management of material topics

Business Review 2022: Power system

Research and development
GRI 3-3Management of material topics

Business Review 2022: Research anddevelopment

Management of material topics

Electricity transmission losses and energy
efficiency

System efficiency
GRI 3-3

Environmental responsibility standards
Standard

GRI content

Location

Additional information and omissions

EnergyGRI 302-1
GRI 302-2

Energy consumption within the organisation Electricity transmission losses and energy
Energy consumption outside of theefficiency
organisation

GRI 302-3

Energy intensity

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSElectricity transmission losses and energy
efficiency

FINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORTCORPORATE RESPONSIBILITY

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Fingrid’s corporate responsibility
management and targets

GRI 304-1

Water consumption

Water consumption and wastewater are not essential factors in electricity
transmission or in the operation of substations and reserve power plants.
Household water is consumed at our facilities, substations and reserve power
plants.

Operational sites owned, leased, managed
in, or adjacent to, protected areas and areasof high biodiversity value outside protectedareas

Protection of nature values and biodiversity
and impacts on land use and scenic values

Greenhouse gas emissions

Greenhouse gas impactsof Fingrid’s operations

GRI 305-1

Direct (Scope 1) GHG emissions

Greenhouse gas impactsof Fingrid’s operations
Substations’ SF6 gases

GRI 305-2

Energy indirect (Scope 2) GHG emissions

Greenhouse gas impactsof Fingrid’s operations

GRI 305-3

Other indirect (Scope 3) GHG emissions

Greenhouse gas impactsof Fingrid’s operations

GRI 305-4

GHG emissions intensity

Greenhouse gas impactsof Fingrid’s operations

GRI 305-7

Nitrogen oxides (NOx), sulfur oxides (SOx),
and other significant air emissions

Greenhouse gas impactsof Fingrid’s operations

GRI 306-1

Waste generation and significant wasterelated impacts

Circular economy and material efficiency

GRI 306-2

Management of significant waste-related
impacts

Circular economy and material efficiency

GRI 306-3

Waste generated

Circular economy and material efficiency

GRI 306-4

Waste diverted from disposal

Circular economy and material efficiency

GRI 306-5

Waste directed to disposal

Circular economy and material efficiency

Emissions

Good governanceCorporate responsibility GRI
and SASB disclosures

Additional information and omissions

Biodiversity

Environmental responsibility
Social responsibility

Location

Water
GRI 303-5

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENTGRI content

Waste

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

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91

Social responsibility standards
ANNUAL REPORT 2022

Standard

GRI content

Location

Additional information and omissions

New employee hires and employee
turnover; total numbers, by age group,
gender and region

Diverse work community

Percentage of employees retiring within
the next 5 and 10 years

Diverse work community

Number of workdays of contractors’
and contractors' employees working inconstruction, operation and maintenancedutiesDiverse work community

The report accounts for the total working hours of service providers see GRI 2-7.

Proportion of suppliers’ and contractors’
employees who have taken part in
occupational safety training

Promoting occupational healthand safety

The report accounts for the OHS development project.

Employment
CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENTGRI 401-1

Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Occupational health and safety
GRI 403-1

Occupational health and safety
management system

Promoting occupational health and safety

GRI 403-2

Hazard identification, risk assessment,
and incident investigation

Promoting occupational health and safety

GRI 403-3

Occupational health services

Knowhow and healthy, happy personnel

GRI 403-4

Worker participation, consultation, andcommunication on occupational healthand safety

Promoting occupational health and safety

GRI 403-5

Worker training on occupational healthand safety

Promoting occupational health and safety

GRI 403-6

Promotion of worker health

Promoting occupational health and safety
Knowhow and healthy, happy personnel
Promoting occupational health and safety

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GOVERNANCE

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CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

GRI content

Location

Additional information and omissions

Occupational health and safety
GRI 403-7

Prevention and mitigation of occupational
health and safety impacts directly linked bybusiness relationships

Promoting occupational health and safety

GRI 403-8

Workers covered by an occupational healthand safety management system

Promoting occupational health and safety

GRI 403-9

Work-related injuries; types and rates of
injuries (LTIF), occupational diseases, lostdays, absenteeism, and number of workrelated fatalities, by region and by gender

Promoting occupational health and safety

Contractors’ and suppliers’ OHS-related
performance

Promoting occupational health and safety

Work-related ill health

Promoting occupational health and safety

Environmental responsibility
Social responsibility
Good governance

GRI 403-10

Corporate responsibility GRI
and SASB disclosures

Training and education
GRI 404-1

Average hours of training per year per
employee; by gender and by employee
category

GRI 404-2

Programmes for upgrading employee skills Business Review 2022: Personnel
and transition assistance programmes; tofacilitate continued employability and the
management of career endings

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORS

A number of injuries, injuries frequency and fatalities reported

Business Review 2022: Personnel

FINANCIAL STATEMENTS

GOVERNANCE

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GRI content

Location

Additional information and omissions

Diversity and equal opportunities
GRI 405-1

Diverse work community

Fingrid’s corporate responsibility
management and targets

Diversity of governance bodies;
composition of governance bodies andbreakdown of employees per employee
category according to gender, age group,
minority group, and other indicators ofdiversity

GRI 405-2

Ratio of basic salary and remuneration of
women to men

Fair remuneration

Environmental responsibility

Non-discrimination

Social responsibility

GRI 406-1

Incidents of discrimination and corrective
actions taken

Feedback channels and reporting
breaches

Result of landowner survey

Landowners

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT

Good governanceNo incidents of discrimination during the reporting period.

Local communities

Corporate responsibility GRI
and SASB disclosures

Public policy
GRI 415-1

Political contributions; total value by
country and recipient/beneficiary

Fingrid does not provide any direct or indirect support, including nonmonetary support, to political activities.

Customer health and safety
Number of injuries and fatalities to the
public involving company assets, including
legal judgments, settlements and pending
legal cases of diseases

Safety of the main gridPower outage frequency

Report of the Board of Directors
Reliability and security of the electricity
systemAverage power outage duration

Report of the Board of Directors
Reliability and security of the electricity
systemNo cases of personal injury to the public during the reporting period caused
by Fingrid’s electricity equipment or their use in 2022. No claims related toincidents of this kind were presented to the company during the reporting
period.

Availability

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

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GRI content

Location

Additional information and omissions

Substantiated complaints concerning
breaches of customer privacy and losses ofcustomer data

Information security and data protection
Feedback channels and reporting breaches

One breach was detected in connection with the privacy of landowners. The
case concerned two attached documents handed over to municipalities during
an expropriation permit process; some of the personal data contained in the
documents had been missed when blocking it out. The data was also temporarily
visible on the municipalities’ websites, until it was removed at Fingrid’s request.
According to Fingrid’s assessment, the case did not cause high risk for theregistered persons’ rights, and it also did not result in any major impact on
Fingrid’s business operations. Fingrid modified the practices concerning
expropriation permit processes to prevent any similar incidents in the future.

Customer privacy
GRI 418-1

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Disclosures based on the SASB standard
Code

SASB Accounting MetricFingrid Disclosures

2022

Unit of measure More information

Greenhouse Gas Emissions & Energy Resource Planning
IF-EU-110a.1

IF-EU-110a.2

BUSINESS REVIEW

1) Gross global Scope 1
emissions, percentage
covered under:

Greenhouse gas emissions, scope 1

7 000

Metric tons (t)CO2-e(2) emissions-limiting
regulations

Percentage of scope 1 emissions covered by the EU emission trading
system89 %Percentage (%)(3) emissions-reporting
regulations

Percentage of scope 1 emissions covered by the the reporting obligationof the EU emission trading system

89 %Percentage (%)

Greenhouse gas (GHG)
emissions associated withpower deliveries

Greenhouse gas emissions, scope 2 from transmission losses(location-based)

96 000Metric tons (t)CO2-e

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORT

Fingrid uses a real-time factor
for electricity consumed(average in 2022 60 g CO2/kWh)

CORPORATE RESPONSIBILITY

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SASB Accounting Metric Fingrid Disclosures

2022

Unit of measure More information

Greenhouse Gas Emissions & Energy Resource Planning
IF-EU-110a.3

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets
Environmental responsibility

Discussion of long-termand short-term strategy
or plan to manage Scope
1 emissions, emissions
reduction targets, and ananalysis of performanceagainst those targets.

Short-term targets 2025:
Finland climate neutral by 2035
• Fingrid’s investments and development projects enable the reduction ofcarbon dioxide emissions in electricity production.
• Grid investments to be carried out to integrate emission-free electricity
production to the grid were completed on schedule, the market’s
development projects were finished and the grid’s system security
remained good.

Fingrid Corporate
Responsibility and Sustainable
Development Report 2022, p.
14,18 & 21

Emission-free transmission losses:• Finland’s grid investments have enabled the integration of new emissionfree production into the grid, which has reduced the carbon dioxide
emissions of transmission losses without emission compensation.
• Improved energy efficiency based on commitments

Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Main grid does not cause SF6 emissions:• Reducing SF6 gas emissions using modern technologies and preparing
for adoption of new technologies.
• The roadmap for new technologies has been drawn up and a pilot projectis underway.
• The grid’s SF6 emissions are low compared with other TSOs

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

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SASB Accounting Metric Fingrid Disclosures

2022

Unit of measure More information

Greenhouse Gas Emissions & Energy Resource Planning
IF-EU-110a.3

Long-term targets 2035:
Finland climate neutral by 2035
• Enabling the emission-free electricity production required for a climate
neutral Finland and increased demand for electricity.
• The main grid does not restrict Finland’s transition to climate neutrality,
the markets balance out production and consumption, good systemsecurity

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

Fingrid Corporate
Responsibility and Sustainable
Development Report 2022, p.
14,18 & 21

Emission-free transmission losses:• In a climate neutral Finland, transmission losses do not cause any CO2emissions.
• Fingrid is energy efficient in all of its operations

Environmental responsibility
Social responsibility
Good governance

Main grid does not cause SF6 emissions:• SF6 gas emissions at a minimum, all new gas-insulated switching
substations comply with the selected new technology and are SF6-free.
• The lowest SF6 gas emissions caused by a main grid in the world, whencompared with other TSOs.

Corporate responsibility GRI
and SASB disclosures

IF-EU-110a.4

BUSINESS REVIEW

1) Number of customers
served in markets subject
to renewable portfolio
standards (RPS) and(2) percentage fulfillmentof RPS target by market

Not applicable to Fingrid operations

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

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Fingrid Disclosures

2022

Unit of measure More information(1) NOx (excluding N2O)

Nitrogen oxides, Nox

40

Metric tons (t)(2) SoxSulphur dioxide, SO2

0,5Metric tons (t)(3) particulate matter(PM10)

Not relevant in Fingrid's operations(4) lead (Pb)

Not relevant in Fingrid's operations

Environmental responsibility(5) mercury (Hg)

Not relevant in Fingrid's operations

Social responsibility

percentage of each in or nearareas of dense population

Fingrid's reserve power plants are not located in areas of dense population.

ANNUAL REPORT 2022

SASB Accounting Metric

Air Quality
IF-EU-120a.1

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

Good governanceCorporate responsibility GRI
and SASB disclosures

Air emissions of the following
pollutants:

Percentage (%)

Water Management
IF-EU-140a.1(1) Total water withdrawn (2) total
water consumed, percentage
of each in regions with High orExtremely High Baseline Water
Stress

Not relevant in Fingrid’s operations
Water consumption and waste water are not significant factors in electricity
transmission or in the operation of substations and reserve power plants.
Household water is consumed at our facilities, substations and reserve
power plants.

IF-EU-140a.2

Number of incidents of noncompliance associated with water
quantity and/or quality permits,standards, and regulations

Not relevant in Fingrid’s operations

IF-EU-140a.3

Description of water management Not relevant in Fingrid’s operations
risks and discussion of strategies
and practices to mitigate thoserisks

Coal Ash Management
IF-EU-150a.1

Amount of coal combustion
residuals (CCR) generated,
percentage recycled

Not applicable to Fingrid operations
No coal combustion in Fingrid’s operations

IF-EU-150a.2

Total number of coal combustion
residual (CCR) impoundments,
broken down by hazard potential
classification and structural
integrity assessment

Not applicable to Fingrid operations
No coal combustion in Fingrid’s operations

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GOVERNANCE

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SASB Accounting Metric Fingrid Disclosures

Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Unit of measure More information

Energy Affordability
IF-EU-240a.1

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT

2022

Average retail electricrate for (1) residential,(2) commercial, and (3)industrial customers

Not applicable to Fingrid operations.
Fingrid is Finland’s national transmission system operator (TSO). Fingrid
does not set retail electric rates.

IF-EU-240a.2 Typical monthly electric bill Not applicable to Fingrid operations.
for residential customers
Fingrid is Finland’s national transmission system operator (TSO). Fingrid
for (1) 500 kWh and (2)does not have residential customers.
1,000 kWh of electricity
delivered per month
IF-EU-240a.3 Number of residential
customer electric
disconnections for nonpayment, percentage
reconnected within 30
days

Not applicable to Fingrid operations.
Fingrid is Finland’s national transmission system operator (TSO). Fingrid
does not have residential customers.

IF-EU-240a.4 Discussion of impact
of external factors on
customer affordability ofelectricity, including the
economic conditions of theservice territory

According to a study carried out by the European Network of Transmission
System Operators for Electricity (ENTSO-E) in 2021, the transmission
tariffs for electricity in the Finnish main grid are the second lowest in
Europe, when compared with transmission systems of a similar size.
In 2022 Fingrid decided to use its congestion income to cover the increasein operating cost, and not to collect grid service fees for December 2022
and for January, February and June 2023. The company plans to waive grid
service fees for three additional months in 2023. This would reduce main
grid customers’ current payments by some 300 million.

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORT

Fingrid Corporate
Responsibility and Sustainable
Development Report 2022,
p. 53

CORPORATE RESPONSIBILITY

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SASB Accounting Metric Fingrid Disclosures

2022

Unit of measure More information

Combined total recordable injury frequency (TRIF, own personnel
and service providers)

13,5

Rate

IF-EU-240a.2 (2) fatality rate

Number of work-related fatalities

0

Rate

IF-EU-240a.3 (3) near miss frequency
rate (NMFR)

Near miss frequency rate

62,3

Rate

Workforce Health & Safety
IF-EU-320a.1

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT(1) Total recordable
incident rate (TRIR)

Fingrid’s corporate responsibility
management and targets
Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

Fingrid Corporate
Responsibility and Sustainable
Development Report 2022,
p. 59–60

End-Use Efficiency & Demand
IF-EU-420a.1 Percentage of electricutility revenues from rate
structures that (1) aredecoupled and (2) containa lost revenue adjustment
mechanism (LRAM)

Not applicable to Fingrid operations.

IF-EU-420a.2 Percentage of electricload served by smart gridtechnology

Not applicable to Fingrid operations.

IF-EU-420a.3 Customer electricity
savings from efficiency
measures, by market

Not applicable to Fingrid operations.

Nuclear Safety & Emergency Management
IF-EU-540a.1 Total number of nuclear
power units, broken down
by U.S. Nuclear Regulatory
Commission (NRC) Action
Matrix Column

Not applicable to Fingrid operations.
No nuclear power in Fingrid’s operations

IF-EU-540a.2 Description of efforts to
Not applicable to Fingrid operations.
manage nuclear safety and No nuclear power in Fingrid’s operations
emergency preparedness

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORTCORPORATE RESPONSIBILITY

100

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ANNUAL REPORT 2022

SASB Accounting Metric Fingrid Disclosures

Unit of measure More information0

Number ofincidents

4,65

minutes/CP

0,15

Quantity/CP

31,0minutes/event

Grid Resiliency
IF-EU-550a.1

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

2022

Number of incidents
of non-compliancewith physical and/or
cybersecurity standards orregulations

No incidents in 2022

System Average Interruption Duration Index per connection point (CP)IF-EU-550a.2 (1) System Average
Interruption Duration Index(SAIDI)(2) System Average
Interruption Frequency
Index (SAIFI)

Environmental responsibility
Social responsibility(2) System Average Interruption Frequency Index (SAIFI)

Customer Average Interruption Duration Index (CAIDI)(3) Customer Average
Interruption Duration Index(CAIDI), inclusive of major
event days

Good governanceCorporate responsibility GRI
and SASB disclosures

Activity Metrics
IF-EU-000.A

Number of: (1) residential,(2) commercial customers
and (3) industrial
customers served

Customers connected to the Fingrid’s grid.

130

Number

IF-EU-000.B

Total electricity delivered
to: (1) residential,(2) commercial, (3)industrial, (4) all otherretail customers, and (5)wholesale customers

Fingrid’s transmission volume, TWh70,1Terawatt hours(TWh)

IF-EU-000.C

Length of transmission and The main grid owned by Fingrid encompasses approximately 14,500
distribution lines
kilometres of 400-, 220- and 110-kilovolt transmission lines, plus 121
substations, and 3 HVDC stations.

14 500Kilometres (km)IF-EU-000.D

Total electricity generated,
percentage by majorenergy source, percentage
in regulated markets

BUSINESS REVIEW

Energy produced with the fuels consumed by reserve power plants andleased reserve power plants.
100% of electricity generated in regulated markets in Finland. Fingrid’s
own power plants and leasing power plants are not used for commercial
electricity production.

REPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORTCORPORATE RESPONSIBILITY

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SASB Accounting Metric Fingrid Disclosures

Unit of measure More information

Own reserve power plants

6,0

Gigawatt hours(GWh)

Leased reserve power plants

1,0

Gigawatt hours(GWh)

Percentage in regulated markets

100

Percentage (%)

Reserve power plants’ auxiliary energy and Electricity ofFingrid’s own premises

32,8

Gigawatt hours(GWh)

Activity Metrics

CORPORATE RESPONSIBILITY
AND SUSTAINABLE DEVELOPMENT
Fingrid’s corporate responsibility
management and targets

2022

IF-EU-000.E

Total wholesale electricity
purchased

Environmental responsibility
Social responsibility
Good governanceCorporate responsibility GRI
and SASB disclosures

BUSINESS REVIEWREPORT OF THE BOARD OF DIRECTORSFINANCIAL STATEMENTS

GOVERNANCE

REMUNERATION REPORTCORPORATE RESPONSIBILITY

102

Fingrid delivers.
Responsibly.
For more detailed information on Fingrid and the contact
persons for various functions, see the company’s
website at www.fingrid.fi/en
Fingrid Oyj
Läkkisepäntie 21, 00620 Helsinki
PL 530, 00101 Helsinki
Telephone 030 395 5000
Feedback and more information: viestinta@fingrid.fi