Corporate Governance

Fingrid is a public limited company whose governance is based on the Finnish Limited Liability
Companies Act, the Market Abuse Regulation, the Securities Market Act, the company’s articles of
association and its shareholder agreements. Fingrid complies in its operations with the Corporate
Governance Code for Finnish listed companies published by the Securities Market Association
because the company has issued bonds listed on the Ireland and London Stock Exchanges. This
corporate governance statement has been drawn up in accordance with the recommendations and the
reporting requirements of Finland’s Corporate Governance Code. Fingrid’s shares are not subject to
public trading.

The company’s activities are primarily regulated by the Electricity Market Act. The Electricity Market
Act stipulates that Fingrid’s governance and its grid operations must be independent of the production
and sale of electricity and natural gas. Fingrid’s owners must ensure that they keep decision-making
which concerns Fingrid separate from decision-making concerning companies which practice the
production or sale of electricity or natural gas. The confirmed regulatory methods allow the Energy
Authority to monitor the reasonableness of the prices of Fingrid’s electricity transmission operations, as
well as its capabilities to make sufficient investments in its grid and cover its costs. The Energy
Authority confirms the allowed earnings for each regulatory period. The current regulatory methods for
the regulatory periods 2016–2019 and 2020–2023 entered into force on 1 January 2016.

Fingrid’s corporate governance statement has been drawn up as a separate report from the annual
report and has been processed by Fingrid’s Board and the Board’s audit committee. Fingrid’s auditing
organisation PricewaterhouseCoopers Oy has verified that this statement has been provided and that
the description of the internal control and risk management systems pertaining to the financial reporting
process is consistent with the financial statements of the company.

The Finnish Corporate Governance Code is available in full at www.cgfinland.fi.

Updated 5.3.2021