Fortum updated its financial targets and dividend policy in December 2020. The long-term financial targets are:
- Financial net debt/comparable EBITDA below 2x (2021: 0,2x)
- 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 (for 2021: EUR 1.14; for 2020 EUR 1.12)
Fortum is committed to maintaining a rating of at least BBB.
In addition, Fortum uses the GRI Sustainability Reporting Standards disclosures to measure compliance with human rights principles, labour standards, the environment, and anti-corruption.
How to reach the targets
Fortum is well-positioned to capture opportunities resulting from the energy transition, aimed at curbing climate change. To be successful, the energy transition must balance sustainability, affordability, and security of supply. The energy transition requires not only renewables, but also increasingly clean gas, energy storage, and other flexible solutions to provide security of supply and to decarbonise also industry, transportation, heating, and cooling. Building on our strengths, our future growth will be driven by CO2-free power generation and clean gas, sustainably transforming our own operations to become carbon neutral and engaging customers and society to decarbonise.
In December 2020, Fortum updated the strategy for the whole Fortum Group to drive the clean energy transition and deliver sustainable financial performance. Aligned with the goals of the Paris Agreement, Fortum targets carbon neutrality latest by 2050 with ambitious mid-term targets.