Why invest in Fortum

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.

Focus on clean energy

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.

Aligned with the goals of the Paris Agreement, Fortum targets carbon neutrality at the latest by 2050 with ambitious mid-term targets.

Strategy review ongoing

Considering the current prevailing uncertainties and the energy crisis in Europe, Fortum will 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. Following the divestment of Uniper to the German State in December 2022 and the ongoing process to exit Russia, Fortum is repositioning its geographic scope and strategic focus. A strategy review is ongoing and is planned to be announced in connection with the full-year 2022 results on 2 March 2023. At the same time, Fortum is reviewing its business structure and operating model.

During 2022, Fortum’s operating environment changed drastically due to the Russian attack to Ukraine. 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, in addition to the finalised divestment of Uniper, to exit from Russia and to ensure the Group’s liquidity in the very turbulent energy market with high prices and extreme price volatility. 

Financial targets and aim to grow the dividend

Fortum financial targets and dividend policy were updated in December 2020. Fortum is committed to maintaining a credit rating of at least BBB.

The long-term financial targets are:

  • Financial net debt/comparable EBITDA below 2x
  • Hurdle rates for new investments of WACC
    • +100 bps for green investments
    • +200 bps for other investments

Fortum's dividend policy ‘is to pay a stable, sustainable, and over time increasing dividend’.

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Fortum CMD

Fortum's strategy

We are securing a fast and reliable transition to a carbon-neutral economy by providing customers and societies with clean energy and sustainable solutions.

Read about our strategy