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.

See also financial targets below

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. 

To achieve our four strategic objectives, Vattenfall’s Board of Directors have decided on six strategic long-term targets that reflect the strategy. These long-term targets took effect on 1 January 2016. The table below is a visualisation of how objectives and targets correspond:

Strategic objective Strategic targets for 2020 2018 2017 Comment
Leading towards Sustainable Consumption Customer engagement, Net Promoter Score (NPS) relative1 (customer satisfaction relative to competitors): +2 +1 +2 Continued improvements at a slower pace.The Customers & Solutions operating segment achieved an NPS of +1 (+2) relative to competitors.
Leading towards Sustainable Production Commissioned new renewables capacity 2016–2020: ≥2,300 MW 752 MW2 652 MW2 A total of 101 MW (354) of new renewable capacity was installed in 2018. The Aberdeen Bay offshore wind farm (97 MW) in Scotland was commissioned. In addition, 4 MW of solar power was installed.
  Absolute CO2 emissions pro rata: ≤21 Mt 22.0 MT 22.6 MT Absolute CO2 emissions decreased in 2018 to 22.0 Mtonnes (22.6). The reduction is mainly explained by lower generation volumes.
High Performing Operations Return On Capital Employed (ROCE): ≥8%3 7.0%4 7.7%4 Return on capital employed was 7.0% (7.7%). A lower underlying operating profit had a negative impact on return on capital employed.
Empowered and Engaged People Lost Time Injury Frequency5 (LTIF): ≤1.25 1.9 1.5 Lost Time Injury Frequency (LTIF) was 1.9 (1.5). Two tragic fatalities took place in 2018, and a stronger focus on safety is required going forward.
  Employee Engagement Index:≥70% 64% 64% The Employee Engagement Index was unchanged at 64% (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 cycle1 2018 2017 Comment
Profitability                Return on capital employed (ROCE): ≥8% 7.0%2 7.7%2 Return on capital employed was 7.0% (7.7%). A lower underlying operating profit had a negative impact on return on capital employed.
Capital structure Funds from operations (FFO)/adjusted net debt: 22%–27% 20.7% 21.4% FFO/adjusted net debt decreased compared to 2017 and amounted to 20.7% (21.4%). FFO decreased due to lower underlying EBITDA.
Dividend policy Dividend, share of the year’s profit after tax: 40%–70%  2 SEK billion 2 SEK billion The Board of Directors proposed a discretionary dividend payment of SEK 2 billion related to 2018. At the Annual General Meeting on 11 April 2019 it was resolved to distribute the profit in accordance with the Board’s proposal.
  1. 5–7 years.
  2. The key ratio is based on average capital employed.


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