Our targets

At Vattenfall we want to contribute to a sustainable energy system throughout the value chain.

Our goal is to be a truly customer-centric company while continuing the transition towards a long-term sustainable production portfolio.

Strategic targets

Vattenfall's strategy is based on four strategic objectives*):

  • Leading towards Sustainable Consumption by increasing customer centricity, building a sizeable position in decentralised energy and promoting electrification and a climate smart society. 
  • Leading towards Sustainable Production, by growing in renewables and implementing our CO2 roadmap to make fossil-free living possible within one generation.
  • Having High Performing Operations by improving operational efficiency, accelerating digitalisation and taking social and environmental responsibility throughout the value chain.
  • Having Empowered and Engaged People by being an attractive employer, developing an engaging and inclusive company culture and securing necessary competence through recruitment and continuous learning. 

*) Though our strategy remains directionally the same, some adjustments were made in 2019. See more on the updated strategy.

In 2015 Vattenfall’s Board of Directors decided on four strategic objectives (outlined above) and adopted six strategic long-term targets linked to these, effective as of 1 January 2016. The table below is a visualisation of how objectives and targets correspond:

Strategic objective Strategic targets for 2020 Outcome 2019

Outcome 2018

Leading towards Sustainable Consumption Customer engagement, Net Promoter Score (NPS) relative1 (customer satisfaction relative to competitors): +2 +1 +1 Improved performance for Vattenfall as well as for competitors. The Customers & Solutions operating segment achieved an NPS of +1 (+1) relative to competitors.
Leading towards Sustainable Production Commissioned new renewables capacity 2016–2020:
≥2,300 MW
1,226 MW2 752 MW A total of 474 MW (101) of new renewable capacity was installed in 2019. Two wind farms have been commissioned, Horns Rev 3 (407 MW) in Denmark and Slufterdam (29 MW) in the Netherlands. See pages 24–25 for more information about planned investments.
  Absolute CO2 emissions pro rata: ≤21 MT 19.33 MT 22.0 MT Absolute CO2 emissions decreased in 2019 to 19.3 Mtonnes (22.0). The reduction is mainly explained by lower coal-fired generation.
High Performing Operations Return On Capital Employed (ROCE): ≥8% 8.5%4 7.0%4 Return on capital employed was 8.5% (7.0%). A higher gross margin in the Power Generation operating segment and the capital gain from the divestment of the district heating operations in Hamburg made a positive contribution.
Empowered and Engaged People Lost Time Injury Frequency (LTIF):5 ≤1.25 2.1 1.9 Lost Time Injury Frequency (LTIF) was 2.1 (1.9). Improvement measures are ongoing.
  Employee Engagement Index:6 ≥70% 69% 64% The Employee Engagement Index improved
considerably and amounted to 69% (64).
  1. 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.
  2. Pertains only to wind and solar farms completed and commissioned between 1 January 2016 and 31 December 2018.
  3. The target for Return on Capital Employed (ROCE) was changed from 9% to 8% by Vattenfall’s owner at an extraordinary general meeting in December 2017.
  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. Documentation for measurement of target achievement is derived from the results of the My Opinion employee survey, which is conducted on an annual basis.


Financial targets

There are three financial targets for the Vattenfall Group, set by the owner, the Swedish state. The financial targets are related to profitability, capital structure and the dividend policy, and they are intended to ensure that Vattenfall creates value and generates a market rate of return, that the capital structure is efficient, and that financial risk is kept at a reasonable level. 

Financial targets Targets over a business cycle7 Outcome 2019 Outcome 2018 Comment
Profitability     Return on capital employed (ROCE): ≥8% 8.5%8 7.0%8 Return on capital employed was 8.5% (7.0%). A higher gross margin in the Power Generation operating segment and the capital gain from the divestment of the district heating operations in Hamburg made a positive contribution.
Capital structure Funds from operations (FFO)/adjusted net debt: 22%–27% 26.5% 20.7% FFO/adjusted net debt increased compared with 2018, to 26.5% (20.7%). The increase is mainly attributable to higher EBITDA as a result of higher achieved prices in the Power Generation operating segment and lower paid tax.
Dividend policy Dividend, share of the year’s profit after tax: 40%–70%  7.2 SEK billion9 2 SEK billion The Board of Directors proposes a dividend of SEK 7.2 billion, corresponding to 55% of profit for the year attributable to the owner of the Parent Company.
  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 2020.

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.