Strategy

We are putting our growth strategy to work

We are ready to take the lead in driving the transformation towards a cleaner world.

 
Our vision “For a cleaner world” reflects our ambition to drive the transformation towards an low-emission energy system and optimal resource efficiency. Our mission is to engage our customers and society to drive the change towards a cleaner world. Our role is to accelerate this change by reshaping the energy system, improving resource efficiency and providing smart solutions. This way we deliver excellent shareholder value.
 

Our next strategic steps, in two phases

The execution of our strategy and the redeployment of cash will take place in two phases. A significant part of the redeployment is targeted to take place during 2016-2017.
 
In the first phase, the goal is to maximize cash flow through balance sheet redeployment.Our first priority is the consolidation of the generation business in Europe. This will include at least one sizable acquisition in the next few years. This is the area we know best, and we believe that this move will maximise our opportunities for growth and value creation.
 
We plan also to invest to broaden the City Solutions business scope mainly in Europe – organically and/or through acquisitions. The recent Ekokem acquisition offers us a good platform for new types of circular economy solutions, while maintaining a strong connection to our traditional core, the energy system.
 
The resulting cash flow will be used for implementing Fortum’s dividend policy and investments into longer-term competitiveness. In addition, Fortum will continue its cost and asset portfolio optimisation in all divisions.
 
The second phase of strategy implementation will focus on securing Fortum’s longer-term competitiveness. This has already started through wind investments in our Nordic and Russian home markets and solar investments in India. Next steps will include solar enabled system solutions, maximizing the added value from waste and biomass as well as minimizing fossil emissions. In addition, new digital services, active consumers, electric traffic, new storage solutions and other potentially disruptive innovations will be included in Phase 2.
 

Megatrends working for us

There are four megatrends that shape the energy sector: Climate change and resource efficiency; Urbanisation; New technologies and digitalisation; and Active customers. These megatrends will bring profound changes – not only to how energy is produced and sold to customers, but also to how it is consumed. The megatrends will also push to maximise the value of resources, such as waste and biomass.
 
Sustainability is an integral part of our strategy. The tight link between business operations and corporate responsibility underscores the importance of sustainability as a competitive advantage. In our operations, we give balanced consideration to economic, social and environmental responsibility.


 

11/16/2016