Wärtsilä Corporation Annual report 2014

Sustainability targets

Wärtsilä’s targets for reducing GHG and other emissions

Target Schedule Status
To reduce energy consumption by at least 10% in terms of absolute consumption (GWh) by 2016 compared to mean energy consumption in 2005. 2016 By the end of 2014, energy savings of 37,5 GWh have been reached. This represents 80% of the final energy savings target.
To create solutions for enabling medium-sized LNG to replace liquid fuel infrastructure. 2015 First turnkey project was signed with Manga LNG Oy. Feasibility study ongoing in Indonesia for the project to develop bio-gas plant with local partners.
To enable emission reductions through gas conversion projects. 2015 Since 2004, Wärtsilä has performed gas conversions for more than 28 installations totalling 925 MW. During 2014, Wärtsilä has received gas conversion orders for three power plant installations totalling 161 MW.
To increase total net electrical efficiency in simple and combined cycle power plants in cyclic operations. 2015 In 2014 Wärtsilä sold its highest efficiency power plant of all times, i.e. the 140 MW Flexicycle power plant to Mexico. In total four Flexicycle power plants were sold during the year. With the market release of the turbo generator, Wärtsilä is able to provide 50% plant net efficiency at site conditions. Wärtsilä Dry Flexicycle, with high electrical efficiency and minimal water consumption, have been offered to several projects.
To influence developing dynamic power markets in order to enable wide scale renewable integration. 2015 Wärtsilä has participated in many studies which have assessed the value of flexibility for the power systems. Wärtsilä has also assessed various power market models and their ability to secure adequate flexibility in the power systems. Wärtsilä has conducted an active dialogue with various stakeholders concerning dynamic power markets.
To enable the reduction of power losses by 3-5% in electrical propulsion using medium voltage system. 2015 Full scale validation and verification of MV (medium voltage) frequency converter started in the first quarter of 2014, validation of MV LLC (medium voltage low loss concept) will continue in 2015. The reduction target is anticipated to be achieved by the end of year 2015.
To develop performance management solutions for different vessel types enabling better efficiency of the plant. 2012 Wärtsilä Control and Communication Centre (3C) has been developed and is ready for pilot project.
To develop 10 new Wärtsilä Optimiser solutions enabling customer to optimise lifecycle performance. 2015 As part of the Wärtsilä Services “Go Digital” strategy, a condition based monitoring and maintenance concept for all Wärtsilä delivered equipment, performance optimisation concepts for  vessels and power plants powered by Wärtsilä engines or propulsion systems and remote services for all customer support activities will continue to be developed heavily during 2015. Focus will be on providing improved end customer business, efficiency, reliability and availability optimisation of the customer’s assets.
To reduce GHG emissions by 3% through improving the engine efficiency. 2015 Target achieved.
To expand the gas portfolio. 2015 LNGPac sold to 12 installations in 2014.
To stimulate growth for LNG-fuelled OSV's (offshore support vessel). 2015

Wärtsilä received:

  • Two orders for LNG powered OSV's in the North Sea market
  • One order for LNG powered RoPax in the Baltic Sea market
  • Three orders for LNG powered ferries in Canada
  • One order for an LNG powered tug in the Middle Eastern market
To expand the field of LNG applications beyond present vessel types and to facilitate LNG re-engining. 2015 

Wärtsilä has received LNG powered vessel orders beyond present types:

  • Icebreaker
  • Cement carrier (bulk carrier)
  • Harbour tug
  • Icebreaking LNG carrier
To deliver environmental and energy efficiency consultancy projects: 10 projects. 2015 In 2014, the major focus of the consultancy projects has been in environmental compliance, sustainability and in some aspects of energy savings. During 2014, altogether 11 full projects including consultancy, design and hardware delivery have been sold. The target has been achieved.


Decrease Water Consumption

Target Schedule Status
To develop further the dry concepts for high-efficiency combined cycle solutions. 2015 The first business case is in the pipeline. The 355 MW power plant in El Salvador will feature Wärtsilä's dry combined cycle system plant concept in place. The international patent application that was filed in 2013 is expected to be in force during 2015.

Wärtsilä's targets for improving overall performance

Target Schedule Status
To conduct 3 lifecycle assessments. 2015 The potential product categories for the lifecycle assessment have been reviewed. First lifecycle assessment is ongoing.

Wärtsilä's social targets

Target Schedule Status
To make Wärtsilä a workplace where all employees have the opportunity to show their best and develop their career – to build a company of equal opportunities. Continuous Open vacancies filled: 63% internal selections in job level 3 and up and 37% in external selections. In 2014, training days/employee rate was 4.2 (4.1).
To develop a new way of working in supplier relations, safeguarding Wärtsilä's sustainability commitment. 2015 In 2014, periodical assessments for key suppliers were conducted based on the new model and by the end of 2014 Wärtsilä had rated 95% of its suppliers in terms of total spent on Wärtsilä Supply Management supplies.
Development discussion coverage 100%. Continuous Altogether 92% employees had completed development discussions by the end of 2014.
To implement certified EHS management systems in all subsidiaries (excluding purely sales offices). Continuous Launch of two new OHSAS 18001 certified and two new ISO 14001 certified companies during 2014. In 2014, a new management system framework was introduced including new approved global EHS instructions.
To reach the long-term goal for zero lost time injuries. Continuous Wärtsilä continued improving, consolidating and spreading the safety culture. By the end of 2014 over 8,900 employees had completed the 4-hour e-learning focusing on Wärtsilä´s Zero Injury approach. The positive trend continued, the lost-time injury frequency rate for 2014 was 3.5 (4.4).
To ensure Code of Conduct commitment throughout the organisation. 2014 At the end of 2014, 17,220 employees covering 95% of total employees had successfully participated in the training.
To reinforce the Anticorruption/ Broker training of key employee groups and obtaining anti-corruption commitments from all key employees trained. Target 2014: Training of all employees to achieve 80% completion rate. 2014 At the end of 2014, 14,683 employees (81%) had successfully participated in the training.
To conduct three community support projects by 2015. 2015 Three community projects have been conducted. Wärtsilä has supported two school building projects in South Sudan. In addition Wärtsilä has carried out ParticipAid programme in Finland. The target has been achieved.
To improve well-being at work and increase productivity by reducing sickness day cost. 2015 Analysis done in selected countries, action plans done and monitored in respective local companies.


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