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.

See also financial targets below 

Strategic targets for 2025

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.

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In 2020 Vattenfall set six strategic targets for 2025 for the Group.

Strategic focus area Target for 2025 Outcome 2021 (2020) Comments
Driving decarbonisation with our customers and partners
  +18
Customer engagement,
Net Promoter Score (NPS)1
+ 10 (+7) Higher NPS mainly owing to improvement within the Customers & Solutions operating segment as a result of strong performance in Germany and the Netherlands.
Securing fossil-free energy supply
  ≤ 86
gCO2e/kWh
CO2 emissions intensity2, 3
82 (97)

Improvement due to the closure of the coal-fired power plant Moorburg at the end of 2020, lower fossil-based production due to high fuel and CO2 prices and increased fossil-free production (see more on pages 76–77).
Conducting high-performing operations
  22%–27%
Funds from operations
(FFO)/adjusted net debt
171.2% (28.8%) Large increase mainly due to temporary decrease in adjusted net debt following a positive net change in margin calls received related to our price hedging activities.
  8%
Return On Capital
Employed (ROCE)4
22.2% (5.8%) Result was well above target and was affected by compensation from the closure of nuclear power in Germany, changes in market values of energy derivatives and inventories and capital gains from the sale of the German electricity distribution business Stromnetz Berlin.
Motivating and empowering our people
  ≤1.0
Lost Time Injury
Frequency (LTIF)5
1.7 (1.8) Ongoing initiatives to improve safety, including our common health and safety (H&S) strategy and framework for follow-up throughout the organisation (see more on pages 81–83).
  75
Employee Engagement Index6

75 (747)
Improved result puts Vattenfall among the highest ranked organisations in the survey, well above the industry average (see more on page 61).

Notes to strategic targets for 2025

  1. NPS is a tool for measuring customer loyalty and for gaining an understanding of customers’ perceptions of Vattenfall’s products and services.
  2. Including other greenhouse gases, such as N2O and SF6.
  3. Direct emissions (Scope 1) and indirect emissions from purchased electricity and heat (Scope 2) as defined in the Greenhouse Gas Protocol standard.
  4. The key ratio is based on EBIT and average capital employed (see page 111).
  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.
  7. The value has been adjusted compared with previously published information due to change in methodology.

Financial targets

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

Targets over a business cycle1 Outcome 2021 (2020) Comments
Profitability                ≥8%
Return on capital employed (ROCE)2
22.2% (5.8%) Result well above target, which was affected by compensation for the closure of nuclear power in Germany, changes in market values of energy derivatives and inventories and capital gains from the sale of the German electricity distribution business Stromnetz Berlin.
Capital structure 22%–27%
Funds from operations (FFO)/adjusted net debt
171.2% (28.8%) Large increase mainly due to temporary decrease in adjusted net debt following a positive net change in margin calls received related to our price hedging activities.
Dividend policy 40%–70% 
Dividend: share of the year’s profit after tax
23.4 SEK billion(4.0) The Board of Directors has proposed a dividend of SEK 23.4 billion. The dividend pay-out ratio has shown a positive trend over the past five years and was within the target range both in 2020 and 2021.

Notes to financial targets

  1. 5–7 years.
  2. The key ratio is based on EBIT and average capital employed (see page 111).
  3. Dividend proposed by the Board of Directors.

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Annual and sustainability report 2021

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