Forerunner in clean energy
We provide customers with energy solutions that improve present and future life, and we deliver excellent shareholder value.
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Fortum's strategy has four cornerstones: (1) enhance productivity of the current fleet and drive industry transformation, (2) create sustainable solutions for growing cities and urban areas, (3) increase investments in solar and wind power, and (4) build new energy ventures.
Drive productivity and industry transformation
To ensure the competitiveness of the current production fleet, Fortum will enhance productivity, lower the cost base, strengthen procurement and increase capital efficiency in all operations. As the first step, Fortum aims to reduce the fixed cost base in its current operations by EUR 100 million by the end of 2017.
Fortum strives to create value by driving utility industry consolidation and restructuring through transformational mergers and acquisitions in its current home markets and in the integrating European market.
Create solutions for sustainable cities
Growing cities and urban areas are facing multiple challenges, such as high emissions from inefficient heating, cooling and electricity production, increasing amounts of waste, and high traffic pollution and noise. Fortum aims to use its expertise and experience to help cities solve these challenges sustainably and to support building a circular economy. Fortum’s solutions include efficient and reliable district heating and cooling, integrated electricity retail solutions and related applications, waste-to-energy and waste treatment, as well as enhancing e-mobility with smart charging solutions for electric vehicles. In addition, the company sees new revenue opportunities in various expert services in these areas.
Fortum targets growth primarily in its current home markets and also the wider European market. Fortum will also investigate possibilities in carefully selected urban areas in Asia.
Grow in solar and wind
Fortum targets a gigawatt-scale solar and wind portfolio. These technologies are rapidly maturing. At the same time, utility competences are becoming increasingly important as subsidy schemes are gradually being phased out and renewable energy production is becoming more market-based.
For wind power, Fortum's current home markets and broader Europe offer favorable conditions. In solar power, growth requires a wider geographic scope and entering selected new locations.
Build new energy ventures
Start-ups have an increasingly important role in innovating both new technologies and business models in the changing energy industry landscape. Digitalisation will enable productivity improvements in the existing businesses and development of new customer offerings.
Fortum's goal is to be in the forefront of energy technology and application development. To accelerate innovation and commercialisation of new offerings, Fortum will strengthen its in-house focus on innovation and digitalisation, partner with global leading suppliers, promising technology companies and research institutions, as well as make direct and indirect investments in start-ups with encouraging new innovations.
Fortum's strategy implementation is supported by five must-win-battles that bring focus to the most critical development efforts. Their progress is reviewed internally at regular intervals.
Fortum's must-win-battles are:
- Put the customer in the centre
- Establish a culture of speed and agility
- Digitalise our business for maximum scalability
- Create value from market volatility
- Drive competitive markets and fair regulation