Vattenfall's goal is to enable fossil-free living within one generation.
Vattenfall has formulated a strategy with the purpose to Power Climate Smarter Living and the goal to enable fossil-free living within one generation. This commitment to our employees, customers, and other stakeholders provides clear direction, engagement, and focus as well as significant business opportunities. The expectation, both from our owner and our stakeholders, is that we remain a leader in the energy transition, and we aim to do so by contributing where we can create value and be profitable.
Our beliefs about the future
Below we summarise the most important aspects of the market trends around us. They underpin our strategy and represent our view of what is necessary to ensure Vattenfall’s success, given the overall context in which we operate.
- Sustainability is the business
Customers want to reduce their carbon footprint, employees seek companies with strong values and investors are increasingly integrating sustainability into their decision-making. Businesses viewed as forward-thinking and sustainable will be able to leverage stakeholder expectations to their benefit.
- Simple solutions to customers needed in a complex energy landscape
Customers often seek simple, integrated solutions which do not require them to be experts. Companies who can provide simple solutions that truly focus on customer needs by effectively leveraging their expertise across the full energy value chain will have a strong competitive advantage.
- Demand for fossil-free electricity and grids will increase significantly
Electrification represents an opportunity to reduce carbon emissions in the transportation, heating and industrial sectors. Suppliers of fossil-free electricity and heat, as well as the respective network operators, will play an increasingly important role in the work to combat climate change.
- Digitalisation of the entire energy value chain is necessary
As renewable resources increase and industries electrify, electricity networks will be challenged, making it necessary to better leverage existing infrastructure and the potential for flexibility. In addition, customers expect instant information and access as smartphone applications and internet-based solutions are the main interface for customer service and interaction. A digitalised energy value chain will enable this.
- New competencies are critical in the energy transition
New skill sets and competencies will constantly be required as our industry transitions into new ways of interacting with customers, technology and society. Speed in learning, and the ability to adapt to new ways of working will be important competitive advantages and enable the delivery of new products and more efficient processes. Company cultures that are inclusive to diverse points of view will be critical to foster this learning environment and to attract, retain and enhance talent.
- Cost efficiency and competitiveness is paramount
Increased competition in both core and new businesses puts pressure on margins, necessitating a focus on both cost efficiency and competitiveness in order to deliver value. Improving efficiency throughout the value chain will play a significant role.
Our five strategic focus areas
Vattenfall has decided on five strategic focus areas to guide the strategic direction. They illustrate how Vattenfall creates traction given the context it operates in, and how to capture business opportunities in the energy transition. The strategy wheel is based on the integrated utility logic and describes the focus throughout the value chain (top three parts) and the internal organization to make it happen (two lower parts).
- Driving decarbonisation with our customers & partners with focus on increasing customer centricity and promoting electrification and climate smart energy solutions in areas where we have a competitive advantage.
- Connecting and optimising the energy system with focus on maximising the value of flexibility and promoting a stable and cost-efficient grid infrastructure.
- Securing a fossil-free energy supply with focus on growing in renewables, maximising the value of our existing fossil-free assets, and implementing our CO2 roadmap.
- Delivering high-performing operations with focus on being both competitive and cost-effective, leveraging opportunities in digitalisation and taking social and environmental responsibility throughout the value chain.
- Empowering our people with focus on securing necessary competence while improving the employee journey and providing a safe working environment.