Code of Conduct - Fingrid

Code ofConduct

ContentsCode of Conduct........................................................................ 3Our success is based on a value basiswhich has been genuinely internalised.................................... 4Good governance....................................................................... 5We ensure fair and active competitionin purchases and services........................................................ 6We serve our stakeholders efficiently and fairly...................... 7We focus on reducing the environmentalimpacts of our operations......................................................... 7Those working for us deserve respectand a safe working environment.............................................. 8Skilled and motivated personnel behind the success............. 8Rules for joint meetings and gifts............................................ 9Realisation of sustainability, and reportingof non-compliance with the principles................................... 10

Code of ConductA company complying with the principles of sustainable development candemonstrate to its stakeholders that in its everyday operations, the companyimplements solutions whose success can be assessed well into the future.Fingrid Oyj manages a power system infrastructure that must functionreliably at all times and that calls for development plans, the impactsof which on society are reflected over decades.By publishing this Code of Conduct, we indicate our willingness and abilityto carry our corporate responsibility. We require every employee to followthis Code of Conduct. We also require that our contractual partnerswho provide us with services adhere to corresponding principles and makesure that the employees of subcontractors and suppliers are also aware ofour Code of Conduct.We develop both our internal and external reporting in the manner requiredby the Global Reporting Initiative (GRI) guidelines, which concerncorporate responsibility reporting, and by the general guidelines of theFinnish Accounting Standards Board concerning the preparation of annualreviews. Our objective is to assess the financial, social and environmentalimpacts of our operations in an as transparent and objective manneras possible. We also communicate Fingrid’s objectives as an employer,the value basis of the workplace community, and our goals and efforts toenhance human well-being.In addition to fulfilling the requirements laid down in acts, decrees andother regulations, we want to satisfy the expectations of our stakeholdersand society towards our responsible operations.3

Our success is based on a value basiswhich has been genuinely internalisedFingrid’s strategy and business rely on our values, which are transparency,impartiality, efficiency and responsibility. Their meaning and contenthave been worked out by the entire personnel. The in-depth significanceof the values is especially crystallised in difficult choices if no otherguideline is available.The growing importance of personnel as company representatives andcommunicators requires a genuinely common set of values, corporate culture,and shared rules of the game. It is not sufficient that the personneltend to work on the basis of the agreed values.Transparency starts from the premise that we share information honestly,clearly and systematically. Open and timely communications build trust inthe company, in its personnel, and among the personnel. It is inherent oftransparent efforts that they encourage an interactive exchange of viewsand genuine listening. A dialogue permits different kinds of opinions andconstructive feedback. Confidential matters are dealt with responsibly sothat the confidentiality of third parties and privacy are guaranteed.Impartiality requires that the personnel appreciate each other without anysort of discrimination whatsoever. At Fingrid, every employee is important,the duties are distributed equally, and the personnel adhere to consistentprinciples in their work. We provide services to our customers onequal terms, and we subject outside services to competitive tendering asper unambiguous and transparent principles. We treat the representativesof all stakeholders who are in a similar position in a consistent and equitablemanner.Efficiency requires that the planned work is carried out systematically onschedule, in a cost-effective manner and with high quality, applying theprinciple of doing it right the first time. There is systematic developmentof the expertise possessed by the personnel, and the personnel have access4

to the appropriate tools and adequate resources. The management principlestogether with the duties and responsibilities of the personnel areclearly defined. The work is carried out jointly, and the personnel are readyto face new challenges.Responsibility is based on the premise that all employees are aware oftheir own responsibility and of the responsibility of the company in theFinnish society. The system responsibility duties assigned to Fingrid arecarried out conscientiously, and the power system is built and maintainedwith consideration on the environment and safety. Responsible efforts arecharacterised by the fact that the work input of each employee is appreciatedand that well-being at work is ensured. In a responsible company,everyone can trust the company being an exemplary employer, and at thesame time everyone takes responsibility for their own work and does whathas been promised. Responsibility is ultimately measured by how consistentlythe company and its employees keep their promises and do exactlywhat they say they are going to do.Good governanceResponsible business is characterised by fairness and honesty. We are committedto abiding by national and international laws, regulations and generallyaccepted practices. To ensure this, we avail ourselves of the bestexpert support whenever necessary.Fingrid’s operations are governed by regulations such as the Finnish CompaniesAct, Securities Market Act and Electricity Market Act. Moreover,being a listed company, Fingrid complies with the applicable sections ofthe Finnish Corporate Governance Code published by the Finnish SecuritiesAssociation.We communicate our activities openly, honestly, impartially and simultaneouslyto all stakeholders without giving preference to anyone, and inaccordance with valid legislation, stock exchange rules as well as generallyaccepted practices followed in the capital and financial markets.5

In our operations, we need and obtain confidential information releasedby our customers, plus other intellectual capital. We take care of these inthe same way as of our own information, and we do not release them tooutsiders. We organise our operations so that the processing and forwardingof confidential information are protected in a responsible and professionalmanner. We apply the same level of concern to confidential informationregarding our personnel.We monitor actively legislative changes pertaining to our business. Wecommunicate changes and, whenever necessary, instruct our personnel tonew procedures.We ensure fair and active competitionin purchases and servicesFingrid’s business model as a client for transmission system equipment andservices is founded on the fair competitive bidding of the purchases andservices. We comply with all regulations concerning the competitive biddingprocess and extend them to the entire supply chain. Combatting thegrey economy, and the fair treatment of employees in every respect are essentialconsiderations here.The conclusion and maintenance of our business relationships is based onthe fact that we use every available means to ensure that our suppliers andcontractors comply with ethically sustainable principles corresponding tothose that we use. Moreover, we promote policies through which servicesuppliers and contractors together with their subcontractors and subsuppliersand their employees are aware of our Code of Conduct. We seek solutionswhich aim to make sure that only such service providers, contractors,consultants or other third parties, whose practices are consistent withFingrid’s Code of Conduct, can contribute to our assignments.We develop procedures to enable us to better monitor the activities of oursuppliers and subcontractors in terms of the fulfilment of international hu-6

man rights and environmental requirements. We endeavour to maintain anetwork of service providers who are willing to actively promote ethicallysustainable practices and share the experiences gained.We serve our stakeholders efficiently and fairlyWe treat our customers and other stakeholders in a professional and ethicallysustainable manner, and we fulfil our responsibilities and contractualobligations punctually.Our operations and services endeavour to reach a quality level, whichserves as an international example in accordance with our vision. We arecommitted to working efficiently and to responding to the needs of ourcustomers reliably. We apply the similar principle to all our stakeholders.We also require a corresponding level of quality in our internal effortsthroughout the workplace community.We focus on reducing the environmentalimpacts of our operationsOur approach to environmental responsibility has been recorded in ourland use and environmental policy. We pay special attention to the managementof environmental risks and to pre-emptive control of environmentaldamage.Responsibility for land use and environmental issues is part of our dailywork. We reduce the land use and environmental impacts of ouroperations by also engaging our suppliers and contractors to our responsibleapproach.We assess and develop our procedures on a continuous basis, and wecontribute to research and development relating to the land use andenvironmental impacts of the electricity transmission system. We alsoexpect our suppliers and contractors to use and develop environmentallybenign solutions.7

Those working for us deserve respectand a safe working environmentWe treat people in accordance with the rights recorded in the Finnish constitution.We respect these rights and condemn all types of discriminationand prejudice.As an employer, we recognise the basic rights of workers as defined bythe International Labour Organisation (ILO). Employees have the rightto assembly, freedom of association, right to collective bargaining, andthe right to a safe working environment. We do not accept child labouror forced labour in any supply chains of the projects, and we do nothave dealings with subcontractors or suppliers engaged in such activities.Furthermore, we do not accept any coercive, threatening or offensivebehaviour in human interaction.We make sure that the working conditions are appropriate and that theprocedures pertaining to occupational safety are up to date, and we arecommitted to continuously improving these in co-operation with our suppliernetwork. We provide a safe, healthy and well-managed workingenvironment. We reduce the risks of the working environment withdetermined action programmes, and we create best practices allowing thecomprehensive detection, prevention and elimination of the factors thatjeopardise the safety and welfare of our own personnel and those workingfor us in the supply chain.Skilled and motivated personnel behind the successOur employees are selected on the basis of their skills and knowledge, andwe do not accept discrimination in hiring or during the course of employment.We are determined in focusing on the professional learning and personalgrowth of our personnel in a purposeful manner that rewards all. Weorganise the duties and responsibilities in a way which contributes to8

learning on the job. The development of employees is supported by meansof both in-house and external personal development programmes.We develop our expertise and organisation over a long time perspective.Our goals are productivity, innovation and well-being. Personnel coachingbalances leadership, expertise, and the well-being and overall benefitof the workplace.Rules for joint meetings and giftsThe trust of partners and society can be earned by reasonableness and considerationof Fingrid’s principles also in various joint meetings. We use reasonablenessconsideration when arranging our own stakeholder events andwhen participating in similar events organised by a partner of ours.We do not accept or give corporate gifts and distinctions which may lead todependence or expectations for favours in return. The business gifts givento or received from stakeholder representatives must have an ordinaryvalue so that the recipient feels that the gifts are reasonable and in line withgood practice, without compromising the recipient’s independence. In bothsituations, the issues to be taken into account when evaluating the valueof the gift include the position of the recipient, the nature of the occasion,and the image conveyed by the gift of Fingrid.Fingrid performs its duties impartially, fairly and transparently. We donot pay bribes or other illicit payments, and we refuse to be engaged inmoney laundering in all its forms.Fingrid can support efforts for the public benefit at a reasonable amount.The parties receiving sponsoring must be substantially dependent onexternal aid, and the activities supported must be compatible with ourvalues. However, we do not support religious or political activities. Themain emphasis in sponsoring must be on research, education, culture andpeople’s welfare. In order to ensure transparency, visibility is also requiredfor the company in return for the support, and the goal is to supportdifferent issues annually.9

Realisation of sustainability, andreporting of non-compliance with the principlesFingrid’s Board of Directors adopted this Code of Conduct on 16 February2012. The employees are given instruction concerning the principles in conjunctionwith coaching covering the entire workplace community and inconjunction with the induction of new employees. The fulfilment of the Codeof Conduct is assessed on a regular basis, it is reported transparently, and theindicators of sustainable operations are developed constantly. The Code ofConduct is updated whenever necessary.We ensure the fulfilment of the Code of Conduct in our operations throughthe joint efforts of the entire workplace community. If an employeesuspects that Fingrid works contrary to this Code of Conduct, the employeeis encouraged to contact the immediate supervisor. If this is not possibleon account of the nature of the matter, the employee can contact Fingrid’ssenior management.A violation of this Code of Conduct will lead to a discussion with the supervisor,and, if necessary, action depending on the seriousness of the offenseis taken. Those involved in examining the offense must make surethat the matter will be investigated fully confidentially and professionallyso that the privacy of all parties is secured. If a member of the executivemanagement group breaches this Code of Conduct, the matter will beprocessed by Fingrid’s Board of Directors.All Fingrid employees are obliged to make sure that they themselves andthe persons under their responsibility work in compliance with acts aswell as the company’s principles, policies and guidelines. Our objectiveis to promote sustainable procedures also in our partnerships. A repeatedand flagrant violation of these principles can justify the termination of cooperation.Whenever cases of conduct contrary to the principles are identifiedby us, such cases are reported in the appropriate scope.10

Fingrid. Powering Finland.FINGRID OYJ, Arkadiankatu 23 B, P.O. Box 530, FI-00101 Helsinki, FinlandTel. +358 30 395 5000, fax +358 30 395 5196, www.fingrid.fi