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.