Fortum's strategy is to drive the clean energy transition
Fortum is a European power company with the purpose to drive the change for a cleaner world. Our role is to ensure the security of supply and a fast and reliable transition to a carbon-neutral economy by providing customers and societies with clean energy and sustainable solutions. Fortum’s core operations are located in the Nordics and consist of CO2-free power generation, electricity sales, district heating as well as recycling and waste solutions. We are in the process of reviewing our strategy in light of the changed operating environment.
Fortum is well-positioned to capture the opportunities resulting from the energy transition aimed at curbing climate change. To be successful, the energy transition must balance sustainability, affordability, and the security of supply. The energy transition requires, not only renewables, but also increasingly energy storage, and other flexible solutions to provide the security of supply and to decarbonise also industry, transportation, heating, and cooling. Building on our strengths, our future will be driven by CO2-free power generation, sustainably transforming our own operations to become carbon neutral and engaging customers and society to decarbonise.
Fortum's strategy is to drive the clean energy transition. Aligned with the goals of the Paris Agreement, Fortum targets carbon neutrality at the latest by 2050 with ambitious mid-term targets.
In September 2022, Fortum announced that the company has agreed to fully divest Uniper to the German State. The divestment was concluded in December 2022.
During 2022, Fortum’s operating environment has drastically changed due to the Russia-Ukraine war. The company is complying with all applicable laws and regulations, including sanctions, and preparing for various scenarios. Fortum has stopped all new investment projects in Russia and is not providing any new financing to its Russian subsidiaries. Fortum is in the process to implement a controlled exit from the Russian market, with potential divestments of its Russian operations as the preferred path.
In the short-term, Fortum’s priorities are to finalise the divestment process of Uniper, exit from Russia and ensure the Group’s liquidity in the very turbulent energy market with high prices and extreme price volatility.
Considering the current prevailing uncertainties and the energy crisis in Europe, Fortum will, as a next step, review its stand-alone strategy with the main focus on sustainable power generation, the security of supply and affordable energy. In this context, Fortum’s CO2-free generation assets are now needed more than ever.