Vattenfall's strategy and strategic objectives

Vattenfall's goal is to offer all customers climate-smart energy and enable a life free from fossil fuels within one generation.

Our strategic objectives

Below we highlight five major trends that will shape the energy sector going forward and which Vattenfall is basing its strategy on. Understanding these trends will allow us to unlock opportunities to grow and thrive in an increasingly fast-moving and competitive marketplace.

Sustainability and customer focus
Sustainability is key to attracting customers, talent and investors. Customers are increasingly considering climate impact, social and environmental performance, and energy efficiency when choosing energy solutions and suppliers. Strong values, with a focus on sustainability and customers, will attract not only customers but also the talent and investments needed for Vattenfall to drive the energy transformation.

Electrification
Electrification represents an opportunity to reduce carbon emissions in the transportation, heating, and industry sectors. In the Nordic countries, electricity generation is already fossil-free, while on the Continent fossil fuels need to be phased out from the electricity system in parallel with further electrification. Suppliers of renewable electricity and heat play a key role in the work on combating climate change. We believe that widespread electrification in transport and industry can increase electricity demand by up to 100 TWh per year by 2030 in our core markets alone.

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More decentralized energy solutions
The future energy system will consist both of central and decentralised energy solutions. Cost reductions and increased functionality are driving this shift, which is creating opportunities for new competitors and business models along various parts of the energy value chain. New, flexible technologies, such as batteries, are entering the market, and market shares for conventional, central generation are decreasing. Clear regional differences can be observed in what kind of decentralised solutions are adopted by the market but overall decentralised solutions are likely to continue to rapidly gain market share.

Digitalisation
The entire energy value chain is becoming digitalised. Energy consumption is becoming increasingly smart, and new technologies are enabling a steadily increasing amount of consumption to be steered to times when energy supply is high and the price is low. Efficient operation of energy utilities will require better data on the status of various appliances, sophisticated forecasting techniques and more powerful and complex algorithms for turning data into intelligence and control.

New ways of working are driving value and growth
Continued pressure on margins is expected in the coming decade as electricity prices will remain at low average levels for a long time, and competition will increase from non-utility actors. Companies expected to succeed in this environment will be strong in digitalisation, risk management, innovation and operational excellence. In summary, new ways of working are required for value creation and growth.

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Our strategic objectives

Vattenfall's strategy emanates from our purpose and the five major market trends that we have identified along with the external requirements that we have on our operations. We put strong focus on our customers, integration of sustainability targets, and the continuing development of decentralised energy solutions. Strict cost control and a stable capital structure are also prerequisities for success. Vattenfall's strategy is based on four strategic objectives:

  • Leading towards Sustainable Consumption with focus on increasing customer centricity, building a strong position as a provider of decentralised energy solutions and promoting electrification and a climate smart society
  • Leading towards Sustainable Production, which entails growing in renewables and implementing our CO2 roadmap to become fossil-free within a generation
  • Having High Performing Operations, which encompasses improving operational efficiency at our plants, in our networks and in our customer service centres through increased digitalisation and by taking social and environmental responsibility throughout the value chain
  • Having Empowered and Engaged People, which means being an attractive employer, promoting an engaging culture, and securing the right competence that reflects the diversity of society as a whole.

Achieving our strategic objectives will require that we accelerate our work in a number of important areas. Maintaining a competitive edge and financial strength are key prerequisites in this work. We will need to meet customers' needs faster, increase our efficiency ambitions, and raise the bar with respect to sustainability.

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Illustration: Vattenfall's strategy wheel with the text "Power Climate Smarter Living" in the middle and also "Leading towards Sustainable Consumption", "Leading towards Sustainable Production", "High Performing Operations" and "Empowered and Engaged People"
Last updated: 2018-04-27 17:31