The decision on the new strategic targets, which came into effect on 1 January this year, was taken by Vattenfall's Board of Directors in December 2015 (see fact box).
The four financial targets (return on capital employed, FFO/adjusted net debt, debt/equity ratio and dividend policy), which were laid down by the owner, will remain as they are.
Vattenfall’s aim is for the company to lead the way on sustainable generation and consumption.
"Sustainability is a fully integrated part of the new strategy, which works on the principle that sustainability is essential if Vattenfall is to be a profitable business in the future," says Vattenfall's Head of Sustainability Annika Ramsköld.
21 million tonnes
The target of reducing CO2 emissions to 65 million tonnes by 2020 has been revised. The target is now 21 million tonnes.
"Divestment of German lignite operations is essential if the emissions target is to be achieved," says Annika Ramsköld.
Preliminary figures for 2015 indicate that Vattenfall's total CO2 emissions amounted to 83.5 million tonnes, some 60 million tonnes of which was accounted for by lignite operations.
"To achieve the target of 21 million tonnes of carbon dioxide by 2020, we must also continue to work on energy efficiency improvements in our plants and to use co-combustion with biofuel where appropriate. It's also clear that operating our plants for shorter periods of time is helping to reduce CO2 emissions," says Annika Ramsköld.
Trebling of capacity
The sustainability target which stated that "Vattenfall must grow faster than the market within renewable capacity up to 2020 and contribute to the transition to a more sustainable energy system" has also been revised.
"It's been made even more challenging, and now states that our aim is to lead the way on sustainable generation. Up to 2020, Vattenfall will add a further 2,300 MW of renewable capacity. Mainly wind but solar may also feature towards the end of the period. This will mean a doubling of today's levels, and a trebling over ten years," explains Annika Ramsköld.
In 2015, installed renewable capacity increased by 445 MW but, at the same time, Danish wind power corresponding to around 65 MW was divested.
The growth in renewables will not be funded exclusively by Vattenfall.
"One difference now is that we won't own everything ourselves, we'll be part-owners, as we've already been on a number of occasions."
The previous energy efficiency target has also been revised.
"We'll continue to work on energy efficiency improvements in our plants and to follow up at Group level but this isn't one of the six strategic targets," says Annika Ramsköld.
Footnote: Preliminary figures indicate that CO2 emissions amounted to 83.5 million tonnes, compared with 82.3 million in 2014.