University of Vaasa - Vaasan yliopisto

Figure 1. Lost time injuries frequency in Fortum 7
362
The financial benefits of improved safety performance are not disclosed in Fortum’s
company reporting. If an estimate for the direct costs of one day lost due to injury is,
say, 5000 Euros and an average severity rate is ten days, the value of LTIF
improvement from 2001 to 2006 in Fortum is about 8 million Euros (direct savings
of lost day costs). This figure does not take into account any indirect economic cost
savings and other benefits resulting from an improved safety performance. However,
these figures are possible to compute and integrate into financial value analysis of
sustainability actions.
Financial Value of Energy and Air Emissions in Stora Enso
Another illustration of financial valuation with obtained cost savings is energy
efficiency and greenhouse gas emission reductions improvement. Contrary to the
example given by Fortum above, Stora Enso also discloses measures in its annual
reports that are directly usable for financial valuation. However, these figures are not
included in the company’s sustainability reports, but disclosed in financial terms in
the financial statements. Stora Enso has established and announced, a Group-wide
target of reducing energy consumption by the means of energy efficiency reviews
and by developing renewable energy mix portfolio. Stora Enso reported significant
improvements in energy efficiency in 2006. There is a Group-wide target for
reduction of Greenhouse gas emissions. The company reported direct revenues from
the sales of CO 2 -emission allowances due to a decrease in the use of fossil fuels in
2006, which amounted to approximately 117 million Euros. Energy costs represent 9 %
of Stora Enso’s total costs, being 1,250 million Euros. Stora Enso also generated
income from its environmentally friendly power-generation in Sweden and Belgium