Total capex, bn SEK 2024-2025
| Growth, 41bn SEK | 40.677 |
| Maintenance, 18bn SEK | 17.772 |
| Replacement, 7bn SEK | 7.021 |
Annual and sustainability report 2023
Working for fossil freedom.
We are committed to building a future where everyone can choose fossil-free ways to move, make, and live. We call this fossil freedom. Working towards this goal is more than a responsibility, it is also a business opportunity – using fossil-free energy and technology not just to tackle climate change, but to benefit society, local communities and biodiversity. While we have taken significant steps towards fossil freedom, our society is still highly dependent on fossil fuels. At Vattenfall we are working to help society break free from this addiction.
Staying the course in a turbulent time
"While the transformation towards net zero is driven by climate goals, the price of CO2, and customer demand, it also comes with many business opportunities; something many industries realised a long time ago. The businesses of tomorrow will not run on fossil fuels," says Anna Borg, President and CEO of Vattenfall, in her CEO Message.
Important events during the year
The revival of Swedish nuclear
Vattenfall is at the epicentre of an accelerating energy transition. Climate targets are high on the agenda in the EU and globally, as is the need for a transition of the industry and transport sectors. In Sweden this transition is based on the potential of replacing fossil fuels with fossil-free electricity and hydrogen.
Meeting future demand will require a mix of all fossil-free energy sources such as wind, solar, hydro, and nuclear, each offering unique qualities in terms of costs, construction timeframe, plannability, and scale.
Investments
In its 2023 Annual and sustainability report, Vattenfall presents its investment plan for the coming two years 2024-2025. It has continued focus on growth investments that account for 62% of the total CAPEX. Main projects include the offshore wind farm Hollandse Kust Zuid in the Netherlands, the offshore wind farm Vesterhav projects in Denmark as well as Bruzaholm onshore windfarm in Sweden.
Capex per technology, bn SEK 2024-2025
| Wind, 21bn SEK | 21 |
| Distribution, 17bn SEK | 17 |
| Heat, 8bn SEK | 8 |
| Hydro, 3bn SEK | 3 |
| Nuclear, 3bn SEK | 3 |
| Other, 13bn SEK * | 13 |
Capex per country, bn SEK 2024-2025
| Sweden, 36bn SEK | 36 |
| Germany, 12bn SEK | 12 |
| United Kingdom, 6bn SEK | 6 |
| The Netherlands, 6bn SEK | 6 |
| Denmark, 5bn SEK | 5 |
This is Vattenfall
Vattenfall is one of Europe’s largest producers and retailers of electricity and heat and has approximately 21,000 employees. Our main markets are Sweden, Germany, the Netherlands, Denmark, and the UK. The parent company, Vattenfall AB, is wholly owned by the Swedish state, and its headquarters are in Solna, Sweden. Vattenfall also has offices in Finland, France, Norway, Poland, and Belgium.
Business model and value chain
As an integrated utility, Vattenfall is present throughout the full heat and electricity value chains. Here we outline the several steps for electricty and heat to reach the end consumers. Our business model is centred around creating economic, social and environmental value for our stakeholders.
Business model and value chain (PDF, page 7)
Value chain and activities
Outcomes
In our model for total value creation, we attempt to quantify, in monetary terms, our impacts – both positive and negative – from economic, social, and environmental perspectives.
SEK billion
12.7
Economic value
Vattenfall’s Articles of Association stipulate that the company is to
generate a market rate of return by operating a commercial energy
business that enables the company to be among the leaders in
developing environmentally sustainable energy production.
SEK billion
27.4
Social value
Vattenfall is committed to having an engaged, safe and empowered
workforce that are treated fairly and compensated well. And for
people across our supply chain and in local communities to be
justly treated.
SEK billion
-5.8
Environmental value
Decarbonisation of power is imperative to reach fossil freedom and our climate impact decreased further in 2023. But our commitment does not stop here; biodiversity and other environmental aspects are also core to our business.
Our strategy in a nutshell
Vattenfall has formulated a strategy to reach our goal of enabling fossil freedom. The strategy steers our direction; the way we prioritise business opportunities, focus our efforts and engage our employees, so that we can create value for our stakeholders by remaining a leader in the decarbonisation of our sector and beyond.
More important events during the year
Just transition
The concept of a just transition is important as the path to a fossil-free society will impact both society and individuals, affecting local communities, consumers, and employees throughout the value chain. These impacts will require trade-offs, which will not always be possible to resolve favourable for all stakeholders involved. This is why keeping people at the centre of the transition is so important.
Stay updated with our newsletter THE EDIT
THE EDIT is your monthly briefing on the journey to fossil freedom. This month’s issue features our Annual and sustainability report as well as an outside view of some of the topic themes from the report.
Climate related risk management
With accelerating climate change, understanding and mitigating climate risks are increasingly important – and climate aspects need to be factored in already in the systems design to ensure security of supply. Vattenfall believes that understanding and adapting corporate strategies to the changing business environment will be a prerequisite for remaining successful and resilient as a company. It will also provide a competitive edge to those who manage to capture the opportunities linked to the transition.
EV-charging in the Netherlands
A range of different elements are incorporated in making charging smarter when Vattenfall is working with local authorities and provinces to help achieve the Dutch target of 1.7 million charging points by 2030.
Read the case story to discover what is meant by data-driven rollout, smart charging, the car as part of the energy system and even charging stations in the cloud.
Learn the full story
Download and read our Annual and sustainability report 2023.