Our targets

At Vattenfall we aspire to contribute to a sustainable energy system in all parts of the value chain. 

Our goal is to be a truly customer-centric company as we transition towards a long-term sustainable production portfolio.

Strategic targets

Vattenfall’s targets are based on the five strategic focus areas that guide our strategic direction.

  • Driving decarbonisation with our customers & partners with focus on greater customer centricity and promotion of 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 stable and cost-efficient grid infrastructure
  • Securing a fossil-free energy supply with focus on growth in renewables, maximising the value of our existing fossil-free assets and implementing our CO2 roadmap
  • Delivering high-performing operations by being both competitive and cost-effective, and by 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 work environment

In 2016 Vattenfall’s Board of Directors set six strategic targets for the Group, which we are now reporting on, and new targets for 2025 were set at the end of 2020. 

Strategic targets for 2020 – outcomes

Strategic objective   Outcome 2020 Comment
Leading towards Sustainable Consumption1
  +2
Customer engagement, Net Promoter Score (NPS)2 relative (customer satisfaction relative to competitors)
+2 Improved performance from +1 to +2 for the Customers & Solutions operating segment in 2020 compared with  2019, mainly owing to strong performance in Germany and the Nordic countries. 
Leading towards Sustainable Production1
  ≥ 2,300 MW
Commissioned new renewables capacity 2016–20203
1,560 MW 334 MW of new renewable capacity installed in 2020. The majority of this new capacity pertains to the Princess Ariane onshore wind farm. The target was not achieved due to project delays, mainly Kriegers Flak (605 MW) in Denmark, which will be commissioned in 2021.
  ≤ 21 Mtonnes
Absolute CO2 emissions pro rata
12.1 Mtonnes Absolute CO2 emissions decreased to 12.1 Mtonnes (19.3). The target was achieved as a result of lower coal-fired generation and divested, converted and closed plants in recent years. Weak clean dark- and clean spark spreads contributed to relatively low emissions in 2020.
High-performing operations1
  ≥ 8%
Return On Capital
Employed (ROCE)4
5.8% Return on capital employed decreased to 5.8%, which is below the target of 8%, mainly owing to impairment losses related to the Moorburg power plant in Hamburg.
Empowering our people1 
  ≤1.25
Lost Time Injury Frequency
(LTIF)5
1.86  LTIF was 1.8 (2.1), which means the target was not achieved. Compared with 2019 all areas improved; unfortunately two tragic fatal accidents occurred, both involving employees of subcontractors.
  ≥70
Employee Engagement Index7
72 The Employee Engagement Index improved considerably and amounted to 72% (69%).

Notes to strategic targets for 2020 – outcomes

  1. Previous strategic objectives. In 2019 these were reformulated, and an addition was made to reflect the importance of a connected and optimised energy system. The strategic direction remains unchanged, however.
  2. NPS is a tool for measuring customer loyalty and for gaining an understanding of customers’ perceptions of Vattenfall’s products and services. The target is a positive NPS in absolute terms +2 compared to Vattenfall’s peer competitors.
  3. Pertains only to wind and solar farms completed and commissioned between 1 January 2016 and 31 December 2019.
  4. The key ratio is based on average capital employed.
  5. Lost Time Injury Frequency (LTIF) is expressed in terms of the number of lost time work injuries (per 1 million hours worked), i.e., work-related accidents resulting in absence longer than one day, and accidents resulting in fatality. The ratio pertains only to Vattenfall employees.
  6. The value has been adjusted compared with previously published information in Vattenfall’s 2020 year-end report.
  7. Documentation for measurement of target achievement is derived from the results of the My Opinion employee survey, which is conducted on an annual basis.

Up

New strategic targets for 2025

New strategic targets for 2025 were set at the end of 2020. 

Strategic focus area Outcome 2020 Comment  
Driving decarbonisation with our customers and partners  
+18
Customer engagement,
Net Promoter Score (NPS)
+7  Reasoning: NPS is a well-established tool for measuring customer loyalty and for gaining an understanding of customers' perceptions of Vattenfall's products and services. Definition: Absolute NPS is weighted 80% from Customers & Solutions and 20% from Heat, which corresponds to our customer split.
Securing fossil-free energy supply  
≤ 86
gCO2e/kWh
CO2 emissions intensity
97
gCO2e/kWh
Reasoning: Used by the Science Based Targets initiative (SBTi), whose methodology has become an industry standard. The target for 2025 is to be on track to achieving the 1.5° C target by 2030, according to SBT. Definition: Total emissions of CO2 equivalents1, including both Scope 1 and 22, in relation to total electricity and heat production.
Conducting high-performing operations  
22%–27%
Funds from operations
(FFO)/adjusted net debt
28.8% Reasoning: Vattenfall shall generate a commercial market return. ROCE is a common metric for comparing profitability between companies. Definition: Funds from operations, see consolidated statement of cash flows (page 101).
Adjusted net debt – See comments on the consolidated balance sheet (pages 95-96).
Empowering our people  
≤1.0
Lost Time Injury
Frequency (LTIF)
≤ 1.84 Reasoning: Safety first – the safety of our employees is of utmost importance to Vattenfall. Definition: Lost Time Injury Frequency (LTIF) is expressed in terms of the number of lost time work injuries (per 1 million hours worked), i.e., work-related accidents resulting in absence longer than one day. Only Vattenfall-employees are covered by this metric. Work-related fatalities do not count towards the score but automatically means that the target is not met (both Vattenfall and subcontracted employees). pages 95-96).
75
Employee Engagement Index
72 Reasoning: Having engaged employees is a precondition for being able to achieve our goals and ambitions as a company. Definition: Documentation for measurement of target achievement is derived from the results of the My Opinion employee survey, which is conducted on an annual basis. A score of 75 corresponds to the average of high performing companies.

Notes to new strategic targets for 2025

  1. Including other greenhouse gases, such as N2O and SF6.
  2. Direct emissions (Scope 1) and indirect emissions from purchased electricity and heat (Scope 2) as defined in the
  3. Greenhouse Gas Protocol standard.
  4. Key ratio based on average capital employed.
  5. Figure adjusted after 2020 year-end report. 

Financial targets

Vattenfall’s owner has set three financial targets for the group.

Targets over a business cycle1 Outcome 2020 Comment
Profitability     ≥8%
Return on capital employed (ROCE)2
5.8% Return on capital employed decreased to 5.8%, which is below the target of 8%, mainly owing to impairment losses related to the Moorburg power plant in Hamburg. 
Capital structure 22%–27%
Funds from operations (FFO)/adjusted net debt
28.8% FFO/adjusted net debt increased to 28.8% in 2020, mainly owing to lower adjusted net debt resulting from higher cash flow from operations.
Dividend policy 40%–70% 
Dividend: share of the year’s profit after tax
4.0 SEK billion3 The Board of Directors has proposed a dividend of SEK 4 billion, corresponding to 62% of profit for the year attributable to the owner of the Parent Company.

Notes to financial targets

  1. 5–7 years.
  2. The key ratio is based on average capital employed.
  3. The proposed dividend will be voted on at the Annual General Meeting on 28 April 2021

Related content

Vattenfall is a leading European energy company.

Vattenfall's strategy originates from our purpose to Power Climate Smarter Living.

Vattenfall AB is 100% owned by the Swedish state. The Group has around 20k employees.

See also

We have a responsibility for our environmental and social impacts.

We exist to power climate smarter living.

We have decided to make the biggest leap yet to reduce the impact of climate change.