Caruna’s year 2025

The sustainability report has been prepared at the Group level and covers all three companies in Caruna, namely Caruna Networks Oy and the two companies that own the network licence, Caruna Oy and Caruna Espoo Oy. The sustainability report has been prepared by in part applying the European Sustainability Reporting Standards (ESRS) confirmed by the Commission’s Directive 2023/34/EU adopted in 2023. The report does not cover all disclosure requirements in the ESRS standards.

With the launch of the EU’s Omnibus package, Caruna’s sustainability reporting obligation was postponed by two years, to financial year 2027. At the end of 2025, a change in the scope of the Sustainability Reporting Directive was approved, which excludes the Caruna Group from statutory sustainability reporting. The 2025 sustainability report covers the material information of the value chain, in addition to Caruna’s own operations. Caruna’s preliminary double materiality analysis was prepared in 2024. Caruna also applies the GRI framework in its sustainability reporting to serve its international stakeholders. (BP-1, BP-2)

Caruna’s administrative, management and supervisory bodies are the Board of Directors and the CEO.  Three committees prepare decisions for the Board of Directors and assist it: the Audit Committee, the Nomination and Remuneration Committee, and the Health, Safety and Environment Committee. In each of their meetings, Caruna’s administrative, management and supervisory bodies and their relevant committees are regularly informed of the material impacts, risks and opportunities, the implementation of the due diligence process, and the results and effectiveness of the policies, actions, metrics and targets intended to address them. The CEO is the only member of Caruna Group’s administrative, management and supervisory bodies whose remuneration includes incentives related to sustainability matters. Managing risks related to sustainability reporting is part of Caruna’s overall risk management process. Sustainability reporting follows Caruna’s principles and processes for statutory accounting and reporting, risk management and internal control. (GOV-1, GOV-2, GOV-3, GOV-5)

Finland is undergoing an energy transition as electricity producers and consumers transition from fossil fuels to emission-free energy sources. The clean transition will cause electricity consumption to increase and lead to greater demand for power in electricity networks. At the same time, the growth in electricity consumption has increased pressure to develop electricity networks. Providing a network service requires the management, maintenance, optimisation, and development of the electricity network. The electricity network includes high-voltage, medium-voltage, and low-voltage cables and wires, as well as substations, transformers, distribution cabinets, disconnectors, various sensors and telecommunications connections needed for electricity control and voltage conversion. The components of the electricity network require raw materials such as aluminium, steel, concrete, mineral oil, composites and other plastics, wood and copper. (SBM-1)

Caruna’s goal is to be an expert and reliable partner to its stakeholders, and the company engages in active, proactive dialogue with them. The purpose of stakeholder engagement is to listen to the views of different stakeholders concerning Caruna’s operations and their impacts, highlight Caruna’s views and rationale for its operations, influence and participate in essential legislative and decision-making processes for Caruna’s operating environment through advocacy, share reliable information and improve understanding, and resolve emerging issues in a way that serves all parties as effectively as possible. (SBM-2)

The process to identify and assess sustainability impacts, risks and opportunities is linked to the process of business performance management and is carried out as part of Caruna’s strategy work. Caruna assesses its sustainability impacts primarily through internal expert work. In the preliminary double materiality assessment, the working group laid the foundation by conducting a rough impact assessment, taking into consideration insights obtained through stakeholder engagement. The assessment was refined in workshops attended by experts in various sustainability topics and business representatives. According to the preliminary double materiality assessment, E1 Climate change, S1 Own workforce, S2 Occupational safety of workers in the value chain and G1 Business conduct emerged as material topics for Caruna. (SBM-3, IRO-1)

Caruna Group's main business, electricity distribution, enables the electrification of society and significantly contributes to the EU's environmental target for mitigating climate change. However, the Group's own operations still generate emissions. The key practical measures regarding Scope 1 and 2 emissions are related to the prevention of leaks of SF6 gas used as an insulating gas in electrical equipment and the gradual elimination of its use, the replacement of fossil fuels in emergency power generators and the electrification of its own vehicle fleet. In the reporting year 2025, Caruna has supplemented its transition plan for mitigating climate change by setting a short-term Scope 3 target and supplementing emission reduction measures. Caruna's key means of decarbonizing Scope 3 emissions are the replacement of fossil fuels in electricity network contracting, low-emission network materials and the reduction of emissions from the use of main and regional networks. Practical measures include engaging suppliers in climate action, switching to alternative power sources in contractors' work machines and vehicles, promoting the reuse of network components, and setting emission criteria for the procurement of new network materials.

Caruna does not have a climate neutrality target by 2050. (E1-1, E1-3)

Scope 1, Scope 2 and Scope 3 gross GHG emissions and total GHG emissions

*) Based on the emission factor for electricity consumed in Finland, published by Fingrid.

**) The transmission system operator added Scope 3 emissions to its carbon footprint calculation, which also fully explains the increases in Caruna’s Scope 3 emissions in 2023.

Greenhouse gas intensity

Physical climate risks are divided into acute and chronic risks. Acute extreme weather events, such as storms, freezing and heavy rains, will become more frequent. Snow burdens may accumulate on lines or in the forests bordering power line corridors and pose a threat to electricity distribution. At the same time, heatwaves will become more common, and the risk of wildfires will increase. As the climate warms, the ground does not freeze as it did in the past, which is why trees may fall more easily during winter storms, and heavy rains may cause landslides in addition to flooding. Chronic physical risks, such as a permanent increase in the water level, temperature or humidity, will also become more common and may cause unforeseen adverse impacts on electricity network structures and harm the reliability of electricity distribution. The identified transition risks related to the low-carbon economy include increased demand for capacity in the electricity network due to renewable energy, the dependence of electricity production on favourable weather conditions, and a need for greater demand-side flexibility, fragmented climate and energy efficiency, as well as electricity market legislation and electricity network regulation (SBM-3, IRO-1)

Caruna’s Health, Safety and Environment (HSE) policy, which sets common principles for health, safety and environmental topics, describes the policies that are key regarding climate change. The HSE policy factors in the impacts of Caruna’s operations on the environment, actions aimed at climate change mitigation and adaptation and the smart use of energy. It covers Caruna’s material impacts, risks and opportunities related to the energy transition, reliability of supply, and green transition. The climate change policy aims to ensure reliable electricity distribution, even under demanding climate conditions, promote a clean transition and support customers in the energy transition. (E1-2, E1-3)

Caruna's goal is to ensure a competent and well-being workforce, where all employees feel welcome in the work community as they are. In addition, by creating an attractive and engaging workplace, the company aims to reduce identified business risks related to loss of competence or recruitment difficulties.

Well-being at work

Caruna's code of conduct creates the basis for the way we work, and the culture manual guides how we meet others in everyday life and what kind of behaviour is expected of employees. Caruna listens to and considers the views of its employees as part of decision-making and ensures that they operate in accordance with the code of conduct, for example by offering its employees an anonymous channel to report concerns. Caruna also has a volunteer well-being group, and anyone is welcome to take part in its activities.

Caruna monitors the well-being of its employees using the Employee Engagement Index (EEI). It measures employees' attitudes to four statements: recommendation as an employer, significance of work, willingness to change employers and enthusiasm for work. Caruna's goal is to maintain high job satisfaction, at least at the level of 79. In 2025, the target was exceeded and the indicator was achieved at 84.

Employee Engagement Index (EEI) targets and outcome

Caruna does not tolerate discrimination or harassment in its operations. In 2025, no serious cases of discrimination, complaints or serious human rights violations against its own personnel were reported.

Competence development

Caruna invests in the continuous learning and competence development of its employees. Each employee has a personal development plan, which is reviewed annually. In addition, development discussions and strategic competence assessments are an essential part of the competence development process.

In 2025, each employee spent an average of 5.1 hours on training, which covered, among other things, giving and receiving feedback, regulation and occupational safety.

404-1 Average number of hours of training per person

Occupational safety

Caruna aims to promote a health and safety culture in all operations. In its operations, Caruna strives to prevent and reduce occupational accidents and work-related incidents in accordance with the occupational health, safety and environment policy. The company proactively seeks to identify and address occupational health and safety challenges by monitoring the number of sick leave absences and the reasons for them.

No lost-time accidents or work-related deaths were reported in 2025. The rate of sick leave decreased slightly from the previous year and was 1.2 percent (2024: 1.4%). (S1-2, S1-4, S1-5)

403-9 Work-related accidents, own personnel

C7 Absences due to illness, own personnel

Key policies regarding Caruna’s employees are included in the Code of Conduct, HR policy, cultural handbook and the Health, Safety and Environmental (HSE) policy. Caruna is committed to the principles of the UN’s Sustainable Development Goals, Universal Declaration of Human Rights and Global Compact Initiative.

Caruna’s Code of Conduct takes into consideration the respect for human rights and the universal basic rights as well as compliance with laws and regulations concerning HR. The HR policy considers the following aspects:

• management as a tool for employee engagement and performance,
• fair and competitive remuneration at all organisational levels and transparent remuneration criteria,
• competence development,
• creating attractive career and development opportunities,
• long-term resource planning,
• a safe and healthy workplace,
• respect for freedom of assembly and collective bargaining,
• valuing diversity and equal rights, and
• prohibiting discrimination and harassment.

The HSE policy contains Caruna’s operating principles concerning occupational health, safety and environment. It considers a healthy, safe and motivating work environment, the promotion of a culture of health, safety and well-being in all operations, the prevention and reduction of personal injuries, as well as compliance with laws and regulations, best practices and industry standards as the most important operating principles related to own personnel. (S1-1, S1-3)

Caruna implements several measures to prevent and improve the occupational safety of contractors and subcontractors. Caruna requires all contractors and subcontractors to meet Caruna's HSEQ management requirements for suppliers, and the contracts include sanctions for serious safety deficiencies, as well as incentives for accident-free operations and active safety observation. In addition to these measures, Caruna conducts surveys related to safety and safety culture, and instructs, trains and familiarizes contractors in occupational safety matters.

Caruna regularly audits construction sites and conducts risk assessments to prevent occupational accidents and ensure the safety of construction sites. Suppliers are obliged to report deviations, their investigation and corrective actions. Employees in the value chain can report violations of the ethical guidelines they observe through the reporting channel on Caruna's website, either under their own name or anonymously.

Caruna monitors the level of occupational safety at its sites on a monthly basis by measuring the lost-time injury frequency (LTIF) of employees in the value chain and its own personnel with the aim of reducing the number of accidents leading to absence. In 2025, the target set for the year was slightly missed and the accident frequency was 2.4. (S2-3, S2-4, S2-5)

Caruna implements a number of measures aimed at preventing accidents and improving the occupational safety of contractors and subcontractors, including contract penalties and incentives, audits, risk assessments, construction site supervision, and joint development groups. In addition to these, procurement-phase requirements necessitate that companies meet Caruna’s HSEQ management requirements for suppliers. Caruna has a Safety First principle in place with contractors and subcontractors in the event of a conflict between business interests and material adverse impacts. (S2-4)

The Lost Time Incident Frequency (LTIF) targets and outcome 

Employees in the value chain, their legal representatives or agents do not participate in setting the goals.Employees in the value chain, their legal representatives or agents do not participate in setting the goals.

The Supplier Code of Ethics defines the minimum ethical requirements Caruna has set for its suppliers. It complies with the Declaration on Fundamental Principles and Rights at Work by ILO, which operates under the UN, and the principles of the UN Global Compact Initiative. Suppliers commit to complying with the Code of Conduct by ratifying it as part of the contractual documentation. 

Caruna’s occupational health, safety and environmental policy (HSE policy) describes the principles of occupational safety management. Its principles also apply to workers in the value chain and have been described in contracts, service descriptions and instructions. Occupational safety management is based on a model of continuous improvement. The management model is certified in accordance with ISO 45001. Contractors are required to have an appropriate occupational health and safety management system in place in accordance with the ISO 45001 standard or equivalent.

Caruna is bound by the Act on Public Procurement in Special Sectors, which requires that procurement be carried out in the most economical, systematic, and appropriate entities possible. Procurement processes comply with the principles of ethical practices and sustainable development. The minimum requirement in procurement contracts is that suppliers pass background checks and commit to Caruna Group’s Supplier Code of Conduct. Companies that do not meet the minimum requirements will be eliminated from the tender process. The Supplier Code of Conduct contains principles for preventing corruption and bribery. 

During the reporting year, there were no reports of cases involving the violation of anti-corruption and anti-bribery laws or the imposition of fines. (G1-2)

Caruna’s business conduct is guided by the applicable legislation, the values approved by the company’s Board of Directors, and Caruna’s Code of Conduct and policies. Caruna adheres to its Code of Conduct in all business activities, both internally and in interactions with stakeholders and the society. The Code of Conduct includes Caruna’s position on and commitment to the principles of sustainable development and the principles of preventing corruption and bribery. This lays the foundation for Caruna’s way of working. The Code of Conduct describes what a responsible electricity distribution business is, how Caruna engages in cooperation, how people treat each other, and how Caruna takes care of its assets. All Caruna employees and members of the Caruna Board of Directors are required to comply with the Code of Conduct. Caruna’s contractors, contractual suppliers, and other contractual partners are also required to act in accordance with the Code of Conduct. The Supplier Code of Conduct is based on Caruna’s Code of Conduct and is binding on Caruna’s suppliers and their subcontractors. 

Since 2023, Caruna has been committed to respecting the principles set out in the United Nations Global Compact initiative, fulfilling the commitments to customers and other stakeholders, and meeting social responsibilities. (G1-1)