vattenfall-annual-and-sustainability-report-2025.pdf
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COMMITTED TO
FOSSIL-FREE
COMPETITIVENESS
Annual and
Sustainability Report
2025
Contents
This is Vattenfall Case story: From waste to value: Other
Fossil freedom is the sustainable way forward ........... 3 circular innovation in wind energy ........................................... 40 Quarterly overview ................................................................................. 208
Steps towards fossil freedom ...................................................... 4 Distribution .................................................................................................... 42 Five-year overview .................................................................................. 209
An integrated business model .................................................... 5 Facts about Vattenfall’s markets ............................................... 210
Investing for fossil freedom ........................................................... 6 Risk Management Pro rata .............................................................................................................. 212
Creating value for stakeholders and society ................. 7 Risk Management ................................................................................... 45 Glossary ........................................................................................................... 213
CEO Message ............................................................................................. 8 Strategic and non-financial risks .............................................. 46 Definitions of key ratios ..................................................................... 215
Strategic targets ...................................................................................... 11 Financial risks ....................................................................................... 53 Calculations of key ratios ................................................................. 216
Financial targets ....................................................................................... 13 Financial calendar ................................................................................... 217
Corporate governance
Strategy Corporate governance report ............................................... 58
Forces impacting Board of Directors ............................................................................. 67
our operations and strategy ......................................................... 15 Executive Group Management ............................................. 69
Administration report and financial statements
Our strategy in a nutshell ................................................................. 17 Proposal for the Annual General Meeting .................. 71 Statuary sustainability report
Case story: Flexibility enables a fossil-free “Vattenfall is determined
energy system ........................................................................................... 18 About the report
Sustainability statement to continue driving the
The Annual and Sustainability Report 2025 for Vattenfall AB (publ) is
Investment plan ........................................................................................ 20 Sustainability is the business ......................................... 74 submitted by the Board of Directors and describes the company’s
Green Bond Investor Report ......................................................... 22 overall targets and strategy as well as the year’s results. The adminis- transition to a fossil-free
ESRS 2 General disclosures ............................................. 75
Innovation ....................................................................................................... 23 Environment .................................................................................... 83
tration report and accounts are found on pages 53–54, 57–72 and
152–203 and are assured by our auditors. A part of the administration
society – for our customers,
Case story: AI & Robotics – from smart tools Social ..................................................................................................... 107
report on pages 73–147 include Vattenfall’s statutory sustainability for Europe’s competitive-
statement according to the Swedish Annual Accounts Act and are
to smarter ways of working ............................................................ 25 Governance ..................................................................................... 124 assured by our auditors. Vattenfall has prepared its sustainability ness and for future
Our people ..................................................................................................... 27 statement in accordance with the European Sustainability Reporting
Sustainability notes .................................................................. 127 Standards (ESRS). Vattenfall has reported non-material disclosures generations.”
with reference to ESRS and can be found on pages 106, 121–123, 126,
and 147. The Sustainability statement prepared in accordance with
Operating segments Financial statement ESRS is part of the administration report, non-material elements
CEO Message on page 8
Our operating segments .................................................................. 31 Vattenfall’s financial performance ..................................... 154 (defined on page 80) are not part of the administration report. The
Annual and Sustainability Report can be used as a source for its
Customers & Solutions ..................................................................... 32 Consolidated accounts ............................................................... 157 Communication on Progress for the UN Global Compact (UNGC).
Power Generation ................................................................................... 34 Consolidated notes ......................................................................... 162
Case story: Hydro power expansion Further information about Vattenfall’s operations
Parent company accounts ....................................................... 192 and work on sustainability can be found at
in synergy with biodiversity ........................................................... 36 Parent company notes ................................................................. 195 group.vattenfall.com/who-we-are/sustainability
Wind .................................................................................................................... 38
Vattenfall Annual and Sustainability Report 2025 2
FOSSIL FREEDOM IS
THE SUSTAINABLE WAY
FORWARD
At Vattenfall, we are certain that the future is fossil free. It is
the only sustainable way forward for both the economy and
the environment.
By reducing climate impact and accelerating the energy transition,
societies and businesses can secure long-term competitiveness
and profitability. This work is well under way and requires
continued determination and ingenuity.
Our integrated business model provides a solid foundation and
positions us to successfully navigate a dynamic environment.
The model enables us to create opportunities that combine
sustainability with profitable growth. It fosters partnerships that
accelerate the development of fossil-free electricity for industry
and transport, while giving us the flexibility to adapt quickly as
conditions change.
We are committed to the transition, because we know there is
a way to a fossil-free future.
Let us show you how we are getting there
Vattenfall Annual and Sustainability Report 2025 3
This is Vattenfall
Steps towards fossil freedom
Flexibility enables AI & Robotics – from Hydro power expansion From waste to value:
a fossil-free energy smart tools to smarter in synergy with circular innovation in
system ways of working biodiversity wind energy
Page 18 Page 25 Page 36 Page 40
Vattenfall Annual and Sustainability Report 2025 4
This is Vattenfall
An integrated
business model
Vattenfall is one of Europe’s largest producers and retailers of electricity and
heat. Our integrated utility business model, where we are active in the entire
energy value chain – from production, via flexibility and distribution all the way
to the end-customer – enables us to capture business opportunities across
the value chain and to spread our risks. We are wholly owned by the Swedish
state and have our headquarters in Solna, Sweden.
12.3
Diversified Four operating segments
electricity
generation Customers Power
& Solutions Generation
million customers Underlying EBIT SEK 4.9 billion Underlying EBIT SEK 17.4 billion
Sales of electricity, heat, gas, energy Hydro and nuclear power operations
Millions services, and e-mobility charging solu- as well as optimisation and trading
Electricity 7.4 (60%) Nuclear, 39% tions. Heat operations include district operations including certain large
Nuclear, 39% heating and gas-fired power plants. business customers.
Gas 2.4 (20%)
102.1
TWh produced
Hydro, 37%
Hydro, 37%
Wind, Wind,
17% 17%
Heat 0.5 (4%) Fossil, 7%
electricity
Fossil, 7% Distribution
Grid
Biomass, 0% Wind
1.0 (8%)
Biomass, 0% Underlying EBIT SEK 6.1 billion Underlying EBIT SEK 3.3 billion
Other 1.0 (8%) Development, construction and Distribution operations in Sweden,
operation of wind farms as well service operations, business and
as solar power and batteries. Power-as-a-Service offering.
Numbers of customer contracts, by type Electricity generated, by source
More about the segments on page 31 More about Vattenfall’s value chain on page 78
Vattenfall Annual and Sustainability Report 2025 5
This is Vattenfall
Investing for
fossil freedom
Harsprånget
The direction of the transition is clear: electrification with fossil-free electricity.
We are investing in generation capacity, distribution grids and flexibility to meet
future market needs and in partnerships to accelerate the transition.
Stornorrfors
165
Partnerships that Forsmark
transform industries Uppsala
Electrification requires coordinated change
billion SEK across the entire value chain. Partnerships
are an effective way to align action among
Investment plan stakeholders.
2026–2030
Ringhals
Vesterhav
Syd and Nord
Horns Rev 3
Sandbank
Vattenfall’s assets and
Kriegers p roduction plants
DanTysk Flak
Wind Nuclear
Amsterdam Hydro Gas
Biomass D istrict
Hollandse
heating
Kust Zuid Solar
Electricity distribution grids
in Sweden
Largest facilities are
Thanet
marked with a circle
More about Vattenfall’s
plants on our website
Vattenfall Annual and Sustainability Report 2025 6
This is Vattenfall
Creating value for
stakeholders and society
We generate the fossil-free electricity and provide the services, such as
charging points, that help our customers and the society to achieve fossil
freedom. All while g
enerating healthy returns on capital and contributing
through our tax payments.
SEK 8.0 bn
dividend proposed
for 2025
SEK 7.8 bn
in taxes paid 102.1
TWh, e
lectricity generated
20,869 4.5
persons employed TWh heat produced
Vattenfall Annual and Sustainability Report 2025 7
This is Vattenfall / CEO Message
CEO Message
We deliver and stay the
course in a complex world
2025 was a year of sudden shifts. The energy market was characterised by
turbulence and geopolitical unrest. Though ambitious climate goals remain
steadfast, the pace of the transition varies. When things change, it is important
to find a way forward – together with customers and partners. Vattenfall is
determined to continue driving the transition to a fossil-free society – for
our customers, for Europe’s competitiveness and for future generations.
During the year, we continued to advance our strategy: We have created value and results by investing in
enabling people and businesses to become fossil-free new capacity, flexibility and competitive offerings for
– and doing so in a way that is also sound from a busi- our customers. At the same time, we have focused on
ness perspective. For us, this is not a separate sustaina- keeping our existing assets and facilities in good condi-
bility plan, but the very core of our business. We invested tion. This is the foundation for continuing to grow profit-
SEK 30.4 billion and increased our electricity generation ably while reducing emissions, both for ourselves and
by 3%. Overall, we delivered a solid financial result for our customers. Another priority is our ability to
for 2025. quickly adapt to changing market conditions.
Excluding items affecting comparability, the return on I am very proud of the commitment and competence
capital employed was 10.2% (5.4% in 2024) and was that our employees have shown – and the genuine ’can
“ The cost of energy determines
influenced by improved development of price hedging do’ attitude that makes a difference when conditions
Europe’s competitiveness. The
in Vattenfall’s continental markets and a higher contri- change rapidly.
EU still imports around 90% of its bution from nuclear operations. We continue to have a
fossil fuels, making energy both strong capital structure and the financial key ratio FFO/ Low climate impact increases competitiveness
a matter of cost and security.” AND amounted to 53.4% (41.5% in 2024). This creates The cost of energy determines Europe’s competitive-
resilience and the ability to make profitable invest- ness. The EU still imports around 90% of its fossil fuels,
ments when opportunities arise. Since 2017, we have making energy both a matter of cost and security.
reduced greenhouse gas emissions from our own oper- Compared to countries that have large domestic energy
ations by 73% and are now taking the next step in our reserves, such as the US and China, fuel costs in Europe
supply chains. are significantly higher. When we replace fossil fuels
Vattenfall Annual and Sustainability Report 2025 8
This is Vattenfall / CEO Message
with fossil-free electricity – from nuclear power, wind,
water and solar – we reduce vulnerability, strengthen
recognised for consciously working in this area. Among
other things, Vattenfall was named a leader in diversity
Highlights of 2025
competitiveness and lower running costs in the by the Financial Times’ Statista European Diversity
long term. Leaders Ranking.
This shift is a development in society that requires AI and digitalisation are an integrated part of our
courage, collaboration, perseverance and, not least, entire business and an area where Vattenfall is invest- Work on new nuclear power
investments for a fossil‑free future here and now. It is ing broadly. The business benefit is clear. It makes for
Vattenfall is working intensively to develop new
not about adding these initiatives on top of existing efficient processes, increased safety for our employ- nuclear power generation in Sweden. The project
investments, but about investing in fossil‑free solutions ees, increased customer satisfaction, and faster and is dependent on a risk-sharing model with the
instead. In the ongoing electrification and this new era more precise analyses in operations. Swedish state and is carried out in partnership with
the industrial consortium Industrikraft. During the
of industrialisation, Vattenfall has a key role to play. year, we chose to proceed in the selection process
Fossil-free electricity is not just a question of the The strength of an integrated energy company with two suppliers of modular reactors, American
climate, it is a competitive advantage. Our diversified and integrated business model makes GE Vernova and British Rolls-Royce SMR. We also
started the company Videberg Kraft AB. Our priority
a difference along the entire value chain, making us
is a successful project with reasonable profitability
Leading role in the transition resilient and robust when the market fluctuates. and risk, strong feasibility, and the ability to coexist
Vattenfall is one of Europe’s leading energy companies. Vattenfall has twelve million customers in seven mar- with our existing operations in Ringhals.
We have been involved in driving development through kets, generates approximately 100 TWh of electricity
every industrial shift since the early 20th century. Now annually and provides critical energy infrastructure,
we are doing it again – and it has never been more charging networks and energy services.
important. By spreading risks geographically and across differ-
It is our goal to be a strategic partner that drives value ent types of business activities, we are also able to
in the transition, for both private customers and compa- maintain the investment pace required.
nies. Our starting point is our customers’ specific needs
and business challenges, and we support them on their Investments for future energy needs
journey with solutions that are smart, affordable and From 2026 through 2030, we plan to make significant
sustainable. investments, SEK 165 billion, of which 56% are growth
Our employees, with 94 different nationalities, are investments. We will make these investments in, for
our greatest asset. We are building a culture in which example, fossil-free electricity generation, electricity
everyone is included, where performance and feed- grid expansion, and storage solutions.
back are part of everyday work and where diversity Among the main projects, final investment decisions Important progress in wind power
drives business value. During the year, we have been have been made for the offshore wind farms Nord
licht I and II in Germany and the onshore wind farm In the Netherlands, the Zeevonk project – which
includes both offshore wind and solar power – has
Clashindarroch II in the UK. The Zeevonk project in the
been granted permission to be developed in two
“ By spreading risks geographically Netherlands, with offshore wind and solar power, has phases in line with the market’s evolving demand
developed successfully and is now planned to be built for hydrogen. Final investment decisions have
and across different types of been made for the offshore wind power projects
in two phases.
business activities, we are also On the journey towards new nuclear power in
Nordlicht I and II in Germany and the onshore wind
farm Clashindarroch II in the UK.
able to maintain the investment Sweden, we have decided to move forward with two
pace required.” suppliers of modular reactors, American GE Vernova
Vattenfall Annual and Sustainability Report 2025 9
This is Vattenfall / CEO Message
“ The global situation poses challenges, Our Nordic hydro power plants combine baseload More highlights of 2025
but our direction is clear: our goal of power and flexibility in a way that is unique. To meet mar-
ket needs, we are now running four expansion projects
fossil freedom remains firm.”
that together can provide nearly 650 MW of additional
capacity by the 2030s. This is a tangible example of how
and British Rolls-Royce SMR. With the industrial consor- we are strengthening the system, while the transition is
tium Industrikraft, we have taken important steps for-
Long-term investments
underway. Even within nuclear power, work is progress-
ward and, among other things, started the project com- in hydro power
ing on developing flexible operations to balance energy
pany Videberg Kraft AB. This sends a strong signal that systems over days, weeks or longer periods.
we are taking the demand for new fossil-free electricity Following a second investment decision of
Energy storage is provided both through Swedish SEK 630 million, Vattenfall is investing a total of
seriously – and that the industry is ready to take the lead. hydro power and German pumped storage. Large-scale SEK 1.3 billion in Harsprånget, Sweden’s largest
We have also increased our investments in the distri- hydro power station by capacity, located on the
batteries, often in combination with wind and solar
bution operations to strengthen the electricity grids Lule River. This investment will increase the
power, also play a significant role and we are seeing plant’s capacity by approximately 100 MW to
and ensure quality of supply in Sweden. Our invest-
new business models emerge in this area. During the 913 MW, a significant contribution to Sweden’s
ment plan for the next five years allocates SEK 47 billion energy system.
year, we have entered into three new agreements in
to this area, enabling new housing and electrified indus-
Germany and the Netherlands for services related to
try as well as supporting the expansion of charging Page 36
flexibility and optimisation of battery storage solutions.
infrastructure and renewable energy. At the same time,
we are introducing smart flexibility services for more
Continued clear direction
efficient use of the grid.
The global situation poses challenges, but our direction
Furthermore, we have initiated important investments
is clear: our goal of fossil freedom remains firm. With
in hydro power, including SEK 630 million to increase
profitable investments, more efficient ways of working,
the capacity of the Harsprånget hydro power plant in
and important collaborations, we are creating value for
the Lule River. We have also ordered the world’s first
customers, owner, partners and the climate – and thus
dam gate made of fossil-free steel from SSAB for the
for society at large.
Stornorrfors hydro power station.
We have a good business model and the right con-
The world’s first dam gate
Thanks to our competitive offers, more customers made of fossil-free steel
ditions to continue driving the transition towards a
have chosen us as their electricity supplier in the
fossil-free society. It is the courage, commitment and
Nordic region. In addition, we are expanding in the area Vattenfall and SSAB have signed an agreement
openness of our employees that drives Vattenfall for- for the delivery of 120 tons of fossil-free steel,
of charging solutions for electric vehicles, where, for
ward on the journey towards a competitive and future- produced with sponge iron from HYBRIT’s pilot
example, the city of Hamburg has appointed Vattenfall plant, for what will become the world’s first
proof Europe.
as a partner in its new public charging network. fossil-free dam gate. The choice of fossil-free
steel is expected to reduce the climate footprint
by approximately 100 tonnes. Installation will
A robust energy system
take place in 2028 at Vattenfall’s hydro power
A stable energy system requires robust electricity station in Stornorrfors.
grids, a balanced mix of fossil-free energy sources and
storage capacity. Flexibility, both locally and centrally, is
also important for achieving increased resilience in the Anna Borg,
system as a whole. President and CEO
Vattenfall Annual and Sustainability Report 2025 10
This is Vattenfall / Targets and achievements
Strategic targets Motivating and empowering our people
Target for 2025 Outcome 2025 Comment Five-year trend
LTIF
≤1.0 1.7 The target was not achieved as
the outcome exceeded the tar-
2,0
1,5
1.7
1.5 1.4
1.7
Lost Time Injury
(1.4) get level. Continued efforts to 1.1
Vattenfall continues to take steps towards the goal of enabling the fossil freedom that Frequency (LTIF)3
improve safety are underway.
1,0
drives society f orward. Building on the foundation set by our 2025 targets, the 2030
0,5
For more i nformation, see page
0,0
111.
targets reflect our ambition to be a leader in the energy transition while ensuring a 2021 2022 2023
LTIF (Lost Time Injury Frequency)
2024 2025
Target 2026
strong customer focus as a profitable energy company. Outcome for both the 2025
and 2030 targets are p resented in the next two pages. ≥ 75 81 Outcome above target level
%
80 75
80 80 82 81
after continued improved
Employee 60
Engagement
(82) p erformance with more
40
engaged employees. For more
Index4 20
information, see page 28.
Strategic targets 2025 0
2021 2022
Employee Engagement Index
2023 2024 2025
Target 2026
Driving decarbonisation with our customers and partners Conduct high-performing operations
Target over a business cycle5 Outcome 2025 Comment Five-year trend
Target for 2025 Outcome 2025 Comment Five-year trend
≥ 25% 53.4%
NPS
%
Above target interval and
+18 +19 Increase in NPS mainly as
a result of improvements in
20
16
16 15
19
Adjusted funds from
o utcome in 2024 due to higher
200
171.2
Customer engage-
(+15) the German customer business. 12 10
11
o perations (FFO)/
(41.5) adjusted FFO as a result of 150
ment, Net Promoter 8 higher underlying EBITDA. 100
adjusted net debt 6 55.0 53.4
Score (NPS)1 4 50 21.5 41.5
0 0
2021 2022 2023 2024 2025 2021 2022 2023 2024 2025
Net Promoter Score Target 2026 FFO/AND Target 2026
Securing fossil-free energy supply
≥ 8% 10.2%
%
Outcome above target mainly 15
Target for 2025 Outcome 2025 Comment Five-year trend due to an increase in the under- 11.5
12.5
Return on capital
gCO2e/kWh
employed (ROCE)
(5.4) lying operating profit. This is 10
10.2
≤ 86 33 Improvement due to lower
fossil-based generation, mainly
100
75
81.4
77.7
69.2
excl. items affecting
p rimarily a result of an improved
development of price hedging in
5
6.3
5.4
gCO2e/kWh comparability7
CO2e emissions
(50) due to divestment of the heat 50
50.0 Vattenfall’s continental markets 0
2021 2022 2023 2024 2025
33.0
business in Berlin. For more and an improved result from the
intensity 2 25 ROCE Target 2026
information, see page 88. nuclear power operations.
0
2021 2022 2023 2024 2025
CO2e emissions intensity Target 2026
3. Lost Time Injury Frequency (LTIF) is expressed as the number of lost time work injuries (per 1 million hours worked), that is, work-related accidents
resulting in absence longer than one day, and accidents resulting in fatality. The ratio pertains only to Vattenfall employees.
Figures in parentheses refer to 2024. 4. D ocumentation for measurement of target achievement is derived from the results of the My Opinion employee survey, which is conducted
1. NPS is a tool for measuring customer loyalty and for gaining an understanding of customers’ perceptions of Vattenfall’s products and services. on an annual basis.
2. Includes CO2 and other greenhouse gases such as N 2O and SF6, as well as indirect emissions from electricity and heat use (Scope 2). The target for 5. 5–7 years.
2025 is to be on track to achieving the 1.5° C target by 2030, according to SBTi. 6. As of 2024, the outcome is reported according to the new definition of the capital structure target. The new definition is based on adjusted FFO
excluding dividends attributable to non-controlling interests and adjusted net debt excludes margin calls.
7. The key ratio is based on underlying EBIT and average capital employed (see page 218).
Vattenfall Annual and Sustainability Report 2025 11
This is Vattenfall / Targets and achievements
Strategic targets 2030
Driving decarbonisation with our customers and partners
Target for 2030 Definition Outcome 2025 Comments
+20 NPS is a tool that measures
c ustomer loyalty and for gaining
+19 Increase in NPS (+15 in 2024)
mainly as a result of improvements
Customer engage-
an understanding of customers’ in the German customer business.
ment, Net Promoter
p erc eptions of Vattenfall’s
Score (NPS)
p roducts and services.
Securing fossil-free energy supply Motivating and empowering our people
Target for 2030 Definition Outcome 2025 Comments Target for 2030 Definition Outcome 2025 Comments
18.2 Total absolute CO2e emissions
including Scope 1, 2 and 3, as
23.2 Total emissions decreased
c ompared with 2024, when
<2.0 Workplace safety metric that in
cludes occupational fatal accidents,
3.5 High focus on actions in order to
enhance safety. For more information
Mt. absolute Total recordable
covered by Vattenfall’s 2040 net they amounted to 24.6 Mt. injuries resulting in lost workdays, see pages 111–112.
CO2e emissions injury frequency
zero targets validated by SBTi. The reduction is mainly due accidents requiring medical treat-
(includes Scope (TRIF+) with a zero
to more fossil-free electricity ment beyond first aid, and incidents
1, 2 and 3) fatality threshold2
sales in the Netherlands. that restrict people’s ability to per-
form their regular duties.
Conduct high-performing operations
Target over a business cycle1 Definition Outcome 2025 Comments
86 Employee engagement is meas-
ured as the degree of employees’
85 The outcome was at a high level and
continued efforts to maintain and
Employee
connection to their organisation, strengthen employee engagement
Engagement
≥ 25% Capital structure metric based on
adjusted FFO excluding dividend
53.4% Above target interval and outcome
in 2024 due to higher FFO as a result
Index3
reflected in their commitment to
achieving goals.
are underway.
Adjusted funds from
attributable to non-controlling of higher underlying EBITDA.
o perations (FFO) /
interests. Adjusted net debt is
adjusted net debt
excluding margin calls.
40% Target that focuses on increasing
female representation in leadership
34 Outcome was unchanged compared
with 2024 and continuous work
Driving diverse
roles. This metric is measured by ongoing to reach the target.
leadership
≥ 8% Profitability metric based on
underlying EBIT excluding items
10.2% Outcome above target mainly due
to an increase in the underlying oper-
the Female Manager Ratio, which
reflects progress toward gender
Return on capital diversity in leadership.
affecting comparability. ating profit. This is primarily a result
employed (ROCE)
of an improved development of price
excl. items affecting
hedging in Vattenfall’s continental 1. 5–7 years.
comparability
markets and an improved result from 2. Per 1 million hours worked. This metric includes both Vattenfall employees and contractors. In case of fatality, this target cannot be achieved.
the nuclear power operations. 3. D ocumentation for measurement of target achievement is derived from the results of the My Opinion employee survey, which is conducted
on an annual basis.
Vattenfall Annual and Sustainability Report 2025 12
This is Vattenfall / Targets and achievements
Financial targets
Vattenfall’s owner has set three financial targets for the Group, which pertain
to profitability, capital structure, and dividend policy. These targets are intended
to ensure that Vattenfall creates value and generates a market rate of return, that
its capital structure is efficient, and that financial risk is kept at a reasonable level.
The table below outlines the 2025 outcomes for these targets.
Profitability
Target over a business cycle 1 Outcome 2025 Comments
≥ 8% 10.2% Outcome above target mainly due to an increase in the underlying operating
profit. This is primarily a result of an improved development of price hedging
Return on capital
in Vattenfall’s continental markets and an improved result from the nuclear
employed (ROCE)
power operations.
excl. items affecting
comparability 2
Stornorrfors
Capital structure Dividend policy
Target over a business cycle 1 Outcome 2025 Comments Target over a business cycle 1 Outcome 2025 Comments
≥ 25% 53.4% Above target interval and outcome in 2024 due to higher FFO as a result of
higher underlying EBITDA.
40–70% 8.0 The Board of Directors has p
roposed a dividend of SEK 8.0 billion,
c orresponding to 40 percent of the adjusted net profit.
Adjusted funds from Of adjusted net profit4 SEK billion
o perations (FFO)/
adjusted net debt3
1. 5–7 years.
2. Based on underlying EBIT excluding items affecting comparability and average capital employed (see page 218) .
3. Metric based on adjusted FFO excluding dividends attributable to non-controlling interests. Adjusted net debt is excluding margin calls.
4. Adjusted net profit is excluding fair values and return from nuclear waste fund. The dividend policy takes into account future developments
in c apital structure and investment needs.
Vattenfall Annual and Sustainability Report 2025 13
Strategy
Forces impacting our
operations and strategy ............................................. 15
Our strategy in a nutshell .......................................... 17
Case story: Flexibility enables
a fossil-free energy system .................................... 18
Investment plan ............................................................... 20
Green Bond Investor Report ................................ 22
Innovation ............................................................................. 23
Case story: AI & Robotics – from smart
tools to smarter ways of working ...................... 25
Our people ............................................................................ 27
Vattenfall Annual and Sustainability Report 2025 14
Strategy
Forces impacting
our operations and strategy
The world is becoming increasingly volatile. Geopolitical instability and
challenging market dynamics are shifting EU priorities toward security,
defence, and industry competitiveness. This also affects the climate
efforts. Although EU climate targets are set to remain and the direction
of the energy transition is still clear, the pace is not.
Vattenfall navigates a complex landscape shaped this results in regulatory uncertainty. Adding to the
by macroeconomics, geopolitics, technology develop- aforementioned pressures, this is a growing concern
ments and regulatory changes. 2025 has been a year for companies, holding back decarbonisation invest-
marked by challenges ranging from continued geo- ments.
political instability, increasingly rapid shifts in market In the energy industry, these pressures lead to a shift
conditions, as well as continued high volatility in elec- in investment focus from renewables to regulated busi-
tricity prices. nesses and flexibility. Seen from a developer perspec-
Against this background, European and national tive, prices remain volatile and too low, making most
leadership are placing more emphasis on security, non-subsidised investments challenging. On the other
defence, and economic competitiveness, potentially hand, electricity prices are not low enough for business
at the expense of climate efforts. Tensions and con- customers to undertake decarbonisation investments
flicts disrupt global supply chains, while Europe’s com- when also considering an increased overall cost level.
parably high energy and labour costs make it increas- This dilemma has led both electricity producers and
ingly difficult for European industry to compete at an customers to emphasise cost and operational efficiency.
international level. Recognising that Europe must These challenges impact the pace of the energy tran-
become fossil free to stay competitive, both economi- sition, even though Europe’s net-zero goal remains
cally and geopolitically, EU climate targets are con- clear. At Vattenfall we continue to focus on capturing
firmed to stay. To increase flexibility on how to reach the opportunities presented by the transition while
these targets, levers have been introduced. However, strengthening our business.
Vattenfall Annual and Sustainability Report 2025 15
Strategy
Core beliefs that
underpin our strategy Our decarbonisation journey
and key milestones
The current pace of the energy transition is not where experience greater volatility, at times power surplus
it needs to be, and we believe that our market environ- or scarcity. Flexible assets, such as flexible generation
ment will remain challenging in the short term. As we and storage, as well as demand-side flexibility, will be
look deeper into our strategic context, multiple core essential. Scope 1–3 Change
MtCO2e
beliefs underpin our strategy. since 2017
60
–56%
Governments’ ability to jump-start the market
Demand for fossil-free electricity will grow through regulations and incentives will be 50
We believe the energy transition will pick up again, a key determinant for the pace going forward 40
and as a consequence there will be growth in demand Growing risks and affordability concerns call for more
30
for fossil-free electricity. This also means all fossil-free government support, particularly to stimulate industrial
technologies will be needed. demand and subsequently drive investment signals for 20
new electricity supply. There are already positive signs 10
Demand for fossil-free flexibility will increase for developers of new electricity generation through
0
With an increased share of intermittent electricity local government action and market opportunities, 2017 2021 2022 2023 2024 2025 2030
target 2040
generation, such as wind and solar, power grids will such as attractive conditions for flexibility. target
2025
Achieved 100 percent renewable and
recycled fuel for district heating in Sweden.
2022
Inauguration of the biofuel heat plant Carpe Futurum enabling
a c omplete phase out of peat in the Swedish operations ~ –0.2 Mt
2021
Decommissioning of the German coal power
plant Moorburg ~ –6 Mt
2017
Base year
Read more about our decarbonisation journey in the Sustainability Statement on page 73
Haringvliet Energypark, Netherlands
Vattenfall Annual and Sustainability Report 2025 16
Strategy
Our strategy in a nutshell
Connecting
and optimising
the energy
system
Fossil-free electricity is our core, and we believe that it will be the main
energy carrier of the future, where everyone can choose affordable,
fossil-free ways to move, make and live. Driving
Securing
decarbonisation
fossil-free
with our
To enable the energy
customers and
supply
partners fossil freedom
that drives
society forward
Our purpose sales, services, optimisation and trading. This mitigates Conduct
Motivating and
Our purpose is to enable the fossil freedom that drives risks on a portfolio level, which in turn improves our high-performing
empowering
operations
society forward, making it possible to move, make and debt-bearing capacity. It also provides us with competi- our people
live fossil free, as a profitable energy business. We have tive advantages and enables us to capture additional
set out to be a leader in the energy transition. That is value from synergies across the value chain.
both a responsibility and a business opportunity.
Our markets
Our foundation We have and will further build a strong integrated utility The Vattenfall strategy wheel illustrates Securing fossil-free energy supply by
We focus on carefully managing and growing our position in Sweden, Germany and the Netherlands our integrated business model and what growing new power generation, maximising
position in fossil-free electricity, as it is at the core (with electricity distribution grids only included in is needed to succeed with our strategy. existing assets’ value, and implementing our
of our company and we believe it will grow to be the Sweden). CO2 roadmap.
main energy carrier of the future. We also have a presence in other geographical Driving decarbonisation with customers
and partners by enhancing customer Conduct high-performing operations
markets in northwestern Europe, such as the UK,
centricity and promoting electrification by being competitive and cost-effective,
Our business model Denmark, Finland and Poland. Our presence in these
and decarbonisation energy solutions leveraging digitalisation, and taking social
We believe in the business model of an integrated other markets is not as an integrated utility, but with
where we excel. and environmental responsibility throughout
utility, being active in generation, flexibility, distribution, specific business logic.
the value chain.
Connecting and optimising the energy
system by maximising flexibility value Motivating and empowering our people by
and promoting stable, cost-efficient grid securing necessary competence, improving
infrastructure. the employee journey, and ensuring a safe
work environment.
Vattenfall Annual and Sustainability Report 2025 17
Case story
Case story
Flexibility enables
a fossil-free energy
system
In today’s evolving energy landscape, renewable
sources are playing an increasingly prominent
role. While this shift is essential for achieving
fossil freedom, it also introduces greater volatility.
To ensure a resilient and robust energy system,
flexibility is becoming more critical than ever.
The ability to adjust electricity generation or
consumption in real time to keep supply and
demand balanced has always been vital in power
“Flexibility is not just essential to a fossil-free
markets. Traditionally, this has been provided by
energy system – it is the key to building
fossil-based peak production and hydro power. resilience and robustness, enabling smarter
As fossil assets are being phased out and renew- energy use, and accelerating the transition
toward a sustainable future”, says Annika
ables are rising, new and additional sources of
Ramsköld, Head of Sustainability at
fossil-free flexibility are needed. Vattenfall.
Photo of Hjuleberg hybrid park
Vattenfall Annual and Sustainability Report 2025 18
Case story
Wind and solar power are able to offer flexibility when The challenge of weather-dependent energy 2030’s”, says Lovisa Fricot Norén, Head of Business
conditions allow, but during low production periods, As the share of renewable energy increases, these Unit Hydro Nordic.
additional solutions must step in to secure a stable fluctuations become more pronounced, causing short- Battery storage solutions are rapidly growing.
electricity supply. Vattenfall is expanding and optimis- term over or undersupply in the electricity market. Vattenfall has already several co-located assets in oper-
ing its flexibility portfolio across the value chain to This variability demands greater flexibility from power ation where the battery storage shares a grid connec-
navigate these fluctuations. While conventional hydro grids and plant operators to maintain stability and meet tion with a wind or solar farm. Next to that Vattenfall is
and pumped hydro can cover the entire range of flexi- market demands. Large-scale batteries and pumped also working on standalone batteries.
bility needs, batteries can help dealing with short term storage power plants are used to provide flexible power “Hybrid projects are the new normal for us. It is no
flexibility needs. We also develop offerings to unlock with pinpoint accuracy. Artificial intelligence also plays longer a question of whether to add a battery to a solar
flexibility together with our customers, for example a crucial role in optimising electricity generation and park, but how large that battery should be”, says Nicola
smart charging, vehicle-to-grid, and electrification of adjusting it according to short-term market signals of Kleihues, Director Portfolio & Asset Management,
heat and steam production. These different solutions supply and demand. Business Area Wind.
keep supply and demand in balance and act as hidden
infrastructure that relieves pressure on constrained The power of an integrated utility model Demand response
networks. They also limit curtailment, lower imbalance As an integrated utility, Vattenfall’s operations spans Another important piece of the puzzle is demand
costs, and let customers benefit from low – and some- generation, optimisation and trading, distribution, sales, response, which allows for consumers to adjust their
times negative – prices when renewables are abundant. services, and flexibility – a model supporting rapid electricity usage based on grid conditions or price sig-
“Flexibility is not just essential to a fossil-free energy scaling of renewable energy and flexibility solutions. nals, and to shift consumption to off-peak hours when
system – it is the key to building resilience and robust- By coordinating investments in wind, solar, hydro, demand is low. In this way, Vattenfall’s customers can
ness, enabling smarter energy use, and accelerating batteries, and smart grids, and by optimising activities make use of fluctuating prices. Industries can optimise
the transition toward a sustainable future”, says Annika along the value chain, Vattenfall can decarbonise not production schedules or reduce output or stockpile
Ramsköld, Head of Sustainability at Vattenfall. only its own operations but also those of industrial part- materials to avoid high-price periods, and households
ners and communities. can shift usage to non-peak times making more effec-
“Being integrated enables us to act across the entire tive use of electric vehicles and heat pumps. To
energy value chain with flexibility connecting the dots. enhance grid flexibility, Vattenfall Eldistribution is, for
This holistic approach gives Vattenfall a strong position example, offering conditional agreements to a limited
“Being integrated enables us and a competitive edge on the energy market”, says number of large customers encouraging them to adjust
Sjur Jensen, Head of Business Area Markets their electricity use when the grid is under pressure.
to act across the entire energy
at Vattenfall.
value chain with flexibility New business models evolving
connecting the dots. This holistic Energy storage – an important cornerstone As flexibility grows in importance, new business mod- In that same month, Vattenfall signed an eight-year
approach gives Vattenfall a Energy storage, such as hydro reservoirs, is a corner- els are emerging. In May, Vattenfall and Swiss company contract with energy storage company Return to oper-
strong position and a competitive stone of a flexible energy system, and hydro power cur- terralayr signed a usage agreement for a “Multi-Asset ate a large-scale battery park (50 MW capacity,
edge on the energy market.” rently represents Vattenfall’s largest capacity source. Capacity Toll”, a distributed network of battery storage 100 MWh storage capacity) in Waddinxveen in south-
“The Nordic hydro power has a unique combination systems. Developed and bundled via a flexibility plat- ern Netherlands, connected to the transmission system
Sjur Jensen, Head of Business Area Markets
of large scale, base load and flexibility, which we believe form, the seven-year contract covers 55 MW across operator TenneT’s high-voltage grid in the area. The
will become even more valuable in the electricity sys- eight German sites. Vattenfall will optimise part of the battery will be integrated into Vattenfall’s automated
tem. Therefore, we are running four expansion projects capacity in energy trading. “Tolling” means Vattenfall trading processes providing flexibility where it brings
with a possible addition of nearly 650 MW into the rents the capacity at a fixed price. the greatest benefit to the electricity market.
Vattenfall Annual and Sustainability Report 2025 19
Strategy / Investment plan
Investment plan
Our investment plan reflects Vattenfall’s ambition to be a leader in the energy transition enabling the
165 SEK billion net
capex 2026–2030
fossil freedom that drives society forward, as a profitable energy business. The focus of our investments is Net capex per category
fossil-free electricity generation supported by our integrated utility business model that spans the entire %
% % SEK
SEKbillion
billion
SEK billion
value chain. Another key investment area includes optimising and extending our electricity grids where Growth
Growth
Growth 56
56 56 92
92 92
we in total plan to invest SEK 47 billion over the next five years. Significant investments are also planned
Maintenance
Maintenance 32
32
Maintenance 32 52
52 52
for maintaining and modernising our hydro and nuclear power plants, developing and transitioning our
Replacements
Replacements 12
12
Replacements 12 21
21 21
heat business, and increasing investments in electrification of transportation.
Total investments costs for potential future wind power projects, such creasing capacity at the Harsprånget plant and conver- Net capex per technology
Total planned net investments for 2026 until 2030 as Kattegatt Syd in Sweden and Korsnäs in Finland. sion of the Juktan plant into a pumped storage plant, %
%%% % SEK billion
SEKSEKbillion
SEK SEK
bn bn
bn
amount to SEK 165 billion. Gross investments amount Potential construction spend for these projects is as well as development of new nuclear power capacity 6262
Wind
Wind
Wind Growth 44564
Growth 56 9296 62
96
96 92
to SEK 239 billion1, with the difference mainly attributa- not included in the investment plan. In the onshore in Sweden.
Distribution
Distribution
Distribution
Maintenance 71713271
Maintenance 32 29 29
29 52 4747
47
52
ble to planned partnering related to offshore wind pro- business, growth projects notably include the con-
jects as well as develop-to-sell assumptions for onshore struction of the Waidachswald wind farm (109 MW) Maintenance and replacement investments Hydro
Hydro
Hydro
Replacements751275 12 25
75
Replacements 25 25 21 14 14
14
21
wind and solar projects. The figures that follow refer to in Germany. Vattenfall is also investing heavily in maintenance, Heat
Heat
Heat 31 31
31 69 69
69 1111 11
net investments. Another major growth area is the development and modernisation and replacement of existing assets and
Nuclear
Nuclear
Nuclear 70 70 30
70 30 30 10 10
10
extension of our electricity grids in Sweden, with invest- businesses. Planned maintenance and replacement
Other
Other
Other 75 75
75 25 25
25 2222
22
Growth investments ments of approximately SEK 14 billion. These mainly investments amount to approximately SEK 73 billion
Growth investments account for around 56 percent involve connecting new customers and areas to our over the next five years. Of this amount, SEK 33 billion Maintenance
Maintenance
Maintenanceand and replacements
andreplacements
replacements Growth
Growth
Growth
(SEK 92 billion) of the total investment plan. Notably, electricity networks and providing network solutions. will be invested in our electricity grids in Sweden to
final investment decisions (FIDs) for several projects are In our heat business, we plan growth investments of reinforce the grids and secure quality of supply. In addi- Net capex per country
pending, making specifics subject to change. Around around SEK 7 billion, which includes investments in tion, around SEK 7 billion will be invested to ensure safe %%
%% % SEK billion
SEKSEKbillion
SEK SEK
bn
bn bn
SEK 59 billion is allocated for the development and district heating grids and central and decentral heat and reliable operation at the Swedish nuclear power Sweden
Sweden
Sweden 89
8989
Growth 6767
Growth 5667 56 3333
9233 92
construction of new wind farms. Major investments supply projects with focus on decarbonisation. Key plants through safety and modernisation measures
Netherlands
Netherlands
Netherlands
Maintenance 11 113211
Maintenance 32 89
89 89 52 3939
39
52
include the continued development and construction activities include erecting new peak and back-up at Ringhals and Forsmark. Investments in dam safety,
of the offshore wind farms Nordlicht I and II in Germany capacity in Leiden and connecting several data centres as well as in the maintenance and renewal of Nordic Germany
Germany
Germany
Replacements1616
121684
Replacements 841284 21 3030
30
21
(together ~1.6 GW) and Zeevonk in the Netherlands to existing heating grids in the Netherlands. hydro power plants, are planned at approximately Finland
Finland
Finland 16%
16%
Maint.
16%
Maint.
Maint.
&&repl.,
repl.,
& repl.,
84%
84%84%
Growth
Growth
Growth 33 3
(phased development with total 2 GW offshore wind Further growth activities amount to around SEK 12 SEK 10 billion. In the heat business, Vattenfall plans to
Denmark
Denmark
Denmark 80%
80%
80%
Maint.
Maint.
Maint.
&&
repl,
repl,
& 20%
repl,
20% 20%
Growth
Growth
Growth 22 2
power, 0.5 GW system integration and floating solar billion. These include investments in EV charging invest around SEK 3 billion to maintain and further
stations, growth projects in hydro power such as in develop its asset portfolio. UK
UKUK 80%
80%
80%
Maint.
Maint.
Maint.
&&
repl,
repl,
& 20%
repl,
20% 20%
Growth
Growth
Growth 22 2
power). Growth investments also include development
Maintenance
Maintenance
Maintenance
and
and
replacements
and
replacements
replacements Growth
Growth
Growth
1. Gross investments includes 100% of the planned investments for the Zeevonk project.
Vattenfall Annual and Sustainability Report 2025 20
Strategy / Investment plan
Major investment projects – decided on and in progress1
Est. CO2
reduction2 Vattenfall’s Total
Project Country Type Capacity (ktonnes) interest (%) Completion investment
Nordlicht I Germany Wind offshore 980 MW 1,067 100% 2028 2,724 MEUR
Nordlicht II Germany Wind offshore 630 MW 686 100% 2029 1,877 MEUR
Clashindarroch II United Kingdom Wind onshore 77 MW 30 100% 2027 114 MGBP
Neubrandenburg Germany Solar 60 MW 19 100% 2026 58 MEUR
Martensdorf Germany Solar 94 MW 29 100% 2026 52 MEUR
Döbrichau Germany Solar / Battery 28 MW / 42 MW 9 100% 2026 51 MEUR
Future Heat Leiden Netherlands Gas / Heat grid 100 MW N/A 100% 2027 103 MEUR
Harsprånget G3 Sweden Hydro 102 MW N/A 100% 2028 630 MSEK
E-mobility – Netto Germany E-mobility N/A N/A 100% 2026 86 MEUR
E-mobility – Bünting Germany E-mobility N/A N/A 100% 2026 56 MEUR
E-mobility – Brali Netherlands E-mobility N/A N/A 100% 2026 64 MEUR
1. All numbers in the table reflect the status as per December 2025.
2. Production from onshore wind estimated to 2.6 GWh/MW installed, from offshore wind to 3.5 GWh/MW installed, and from solar to 1.0 GWh/MW
installed. Resulting production is compared against grid-average emission factors which will decline over time as the energy system decarbonises.
Actual production emission factors and savings may vary.
Vattenfall Annual and Sustainability Report 2025 21
Strategy / Green Bond Investor Report
Green Bond Investor Report
Vattenfall issued its first green bond Table of Investments under Vattenfall’s Green Bond Framework1
2024
in June 2019 and by year-end 2025, Capacity Est. CO2 reduction2 Vattenfall’s Total and before in
Category / project / country Type (MW) (ktonnes) interest (%) Start/ compl. investment MSEK 2025 in MSEK Total in MSEK
Vattenfall had a total of SEK 22.3 billion
Renewable energy and related infrastructure
in outstanding green bonds. Kriegers flak / Denmark Wind offshore 604 108 100% 2019/2021 7,600 MDKK 9,694 0 9,694
Princess Ariane / The Netherlands Wind onshore 180 107 100% 2018/2020 220 MEUR 1,348 0 1,348
Princess Ariane / The Netherlands3 Wind onshore 118 70 0% 2018/2020 0 MEUR 0 0 0
Hollandse Kust Zuid 1–4 / The Netherlands Wind offshore 1,509 1,197 50.5% 2020/2023 2,600 MEUR 13,413 0 13,413
Vattenfall has decided to use green financing in
Vesterhav-projects / Denmark Wind offshore 344 62 100% 2022/2023 657 MEUR 7,199 0 7,199
its funding activities, and we expect all future long- Bruzaholm / Sweden Wind onshore 139 2 100% 2023/2025 2,360 MSEK 1,482 648 2,130
term financing to be made under the Green Bond Velinga / Sweden Wind onshore 67 1 100% 2024/2026 1,182 MSEK 330 740 1,070
framework. Battery Toledo / Sweden Battery 55 N/A 50% 2024/2025 43 MEUR 206 33 239
Nordlicht I & II / Germany Wind offshore 1,610 1,752 100% 2026/2029 4,601 MEUR 0 2,386 2,386
Harsprånget / Sweden Hydro 102 N/A 100% 2026/2028 630 MSEK 0 57 57
Green bond framework in brief
Vattenfall’s current green bond framework, published in Industry projects
HYBRIT / Sweden Fossil-free steel Pilot project N/A 33% 2019/ 2021 858 MSEK 480 0 480
2025, consists of three eligible categories: Renewable
Total 34,151 3,864 38,016
energy, energy efficiency and clean transportation. The
Outstanding green bonds 22,341
renewable energy category also includes transmission Difference4 –15,675
and distribution of electricity. The rating agency S&P
1. All numbers in the table reflect the status as per 31 December 2025.
has provided a second opinion on the framework and 2. Production from onshore wind estimated to 2.6 GWh/MW installed, from offshore wind to 3.5 GWh/MW installed, and from solar to 1.0 GWh/MW installed. Resulting production is compared against grid average emission factors
issued the highest rating, “Dark Green”. which will decline over time as the energy system decarbonises. Actual production emission factors and savings will vary.
3. A part of the wind farm has been divested and is operated by Vattenfall via an Asset.Management Agreement (AMA).
4. All external borrowing is done at corporate level with bonds issued by the parent company, Vattenfall AB, for general corporate purposes. Our bonds have a balanced maturity profile and Vattenfall does not refinance any particular
Outstanding bonds bond maturities but rather takes into consideration the total financing need, i.e. cash from operations, existing liquidity, capex needs, and maturing financial payments such as bond repayments. The difference reflects that
Since the introduction of the Green Financing Frame- currently, the portfolio of investments meeting the eligibility criteria under the framework is larger than our financing needs.
work in 2019, Vattenfall has issued five green bonds
and four green hybrids, amounting to a total of SEK 27.6 Nordlicht Harsprånget
billion, to finance investments that meet the eligibility The Nordlicht offshore wind cluster, Harsprånget, located in the Lule river,
criteria defined under the framework. located in the German North Sea, c onsists is Sweden’s largest hydro power plant.
of the sites Nordlicht I and Nordlicht II. Vattenfall has made an investment
Nordlicht I will have a capacity of around d ecision for a project that includes
During 2025, no new green financing activities were 980 MW and Nordlicht II will have a a new turbine and generator as well as
undertaken. One green bond, with a nominal amount capacity of around 630 MW. Construction a new transformer, control facility and
of EUR 500 million, matured during the year. is planned to begin in 2026 and once fully local switchgear. With the new turbine,
operational, electricity production is Harsprånget will have five units and the
expected to total around 6 TWh annually. total capacity will increase by about
Nordlicht I is expected to be operational 100 MW to 913 MW.
in 2028, and Nordlicht II in 2029.
Vattenfall Annual and Sustainability Report 2025 22
Strategy / Innovation
Innovation
At Vattenfall, innovation goes beyond new technology – it is viewing the entire
energy system as an interconnected whole. We take a holistic approach by linking
generation and demand through flexibility and digitalisation, and we develop and
verify solutions to drive sustainable innovation toward fossil freedom. Through
collaboration across business areas and disciplines, we ensure each innovation
contributes to a resilient, sustainable, and profitable energy future.
Research and Development (R&D) is the engine specialised labs. The team combines deep technical
behind Vattenfall’s innovation efforts. With over 150 expertise with a strong collaborative culture, enabling
experts working across disciplines, together with col- Vattenfall to respond quickly to emerging challenges
leagues from all business areas, we drive progress from and opportunities in the energy landscape. From data-
concept to implementation whether through digitalisa- driven insights to verified solutions, R&D ensures that
tion, system-level analysis, or hands-on testing in our innovation is not only visionary but also practical, scal
able, and aligned with our mission of fossil freedom.
Smarter systems:
Flexibility and digitalisation in practice
As the energy system becomes more dynamic,
Vattenfall Innovation Vattenfall continues to develop smarter, more adapt-
able solutions. Our R&D teams work across disciplines
In today’s fast-paced business world, fostering
innovation at all levels is essential. Grassroot to enhance both the supply and demand sides of the
innovation taps employees’ creative potential, system leveraging digital tools, data science, and flexi-
driving groundbreaking ideas. Vattenfall Innovation, ble technologies to improve performance, reliability,
a company-wide initiative, encourages employees
and customer value.
to submit ideas, with colleagues voting on proposals.
This was initially a national project, that has now
become international. In 2025, over 100 ideas Automated solar activation
were submitted, with the winning idea being TPI
To address grid congestion, Vattenfall piloted a flexible
– AI-Enhanced Digital Twin Framework for Predictive
Maintenance Based on Wind Turbine Performance. solution at the Kungsåra solar park. By integrating
a new algorithm with Dynamic Line Rating (DLR), the
system enables automated control based on real-time
Vattenfall Annual and Sustainability Report 2025 23
Strategy / Innovation
conditions. This reduces the need for manual inter Verified Solutions: From lab to real-world impact
vention and allows for earlier production starts. The Vattenfall’s R&D laboratories in Älvkarleby are a corner-
system is now being considered for broader use in stone of our innovation work, providing advanced envi-
regional grids. ronments for testing and verifying new technologies
before deployment. These labs support safe implemen-
Vehicle-to-Grid (V2G) tation, reduce risk, and accelerate fossil freedom
Together with the technical aggregator Energy through accredited methods and hands-on experimen-
Bank, Vattenfall will launch a pilot with 200 electric tation. Their capabilities span material testing, system
Volkswagen vehicles equipped with bidirectional charg- simulation, and predictive diagnostics to ensure that
ing. This allows cars to store fossil-free electricity and innovations are not only visionary but also proven and
return it to homes or the grid when demand is high. verified. WIN@sea – producing fossil-
While V2G technology is beginning to see early com- To stay ahead of evolving needs in the energy sys- free electricity and food in the
mercial deployments in parts of Europe, it remains tem, the lab infrastructure is continuously expanded. same area
largely in a pilot phase in Sweden. The project explores Recently, a few new additions were made to tackle
customer benefits and grid balancing potential, with emerging challenges. A real-time simulator was com- Wind power plays an important role in replacing
commercial rollout as the next step. missioned to enable safe testing of grid control strate- fo ssil fuels with fossil-free energy sources. The
WIN@sea project is a collaboration between Danish
gies under realistic conditions, primarily for distribution universities and companies exploring the potential
Condition-based monitoring projects. A thermal cycling rig was added to induce of “multi-u se platforms” at offshore wind farms. The
The Laxede hydro power plant has been a pilot site for high currents in cable systems for durability testing, goal is to harvest synergies within the same marine
area where both electricity and food are produced.
advancing condition-based maintenance using data and a bending stiffness rig now allows for mechanical
WIN@sea has been cultivating seaweed at two
science. By combining historical data, expert knowl- analysis of power cables under load. Danish Vattenfall wind farms: Kriegers Flak in the
edge, and machine learning, the approach enables These additions reflect our commitment to continu- Baltic Sea and Vesterhav Syd in the Danish North
Sea. Through this pilot project, Vattenfall aims to
more precise and proactive maintenance – reducing ously strengthening our ability to validate solutions
accelerate the implementation of shared use of
downtime and extending asset life. This year, the first that matter and ensure they are ready to deliver impact energy infrastructure while facilitating nature
AI assistant RAGBOT (Retrieval-Augmented Generation) across the energy system. c onservation efforts, such as habitat restoration,
was deployed to safely extract and interpret operational within and beyond the wind farm area.
data from internal systems, improving decision-making
The WIN@sea project was highlighted in Vattenfall’s
and maintenance planning. brand activation campaign Wind Farmed, where
snacks made from seaweed grown at Vesterhav Syd
served as a talking point to showcase the possibilities
with co-use of electricity infrastructure and cross-
industry collaboration.
Vattenfall Annual and Sustainability Report 2025 24
Case story
Case story
AI & Robotics – from
smart tools to smarter
ways of working
AI has become a prerequisite for staying com-
petitive. The technology is advancing rapidly and
contributes to increased efficiency across all
operational areas. Through innovative solutions,
there is significant business value to be gained
– an area where Vattenfall is investing broadly.
From production and distribution to customer
relations and consumption patterns – AI is pres-
ent in all parts of Vattenfall’s operations. The busi- “This is just the beginning. Right now, the
focus is on collecting information for our
ness value is clear; it contributes to more efficient
algorithms and AI models with the goal
processes, time savings, increased employee of streamlining processes and workflows
safety, higher customer satisfaction, and faster, throughout the entire value chain,” says
Dag Wästlund, Section Manager,
more accurate analyses.
Data Science & AI at Vattenfall R&D.
Vattenfall Annual and Sustainability Report 2025 25
Case story
As technology advances, Vattenfall also sees a growing power plants. With the help of language models, our Enhanced customer interaction Robots make their entrance
need to understand how to integrate with existing mployees can quickly get an overview and receive
e Self-service options have been available in customer As AI continues to develop, we will also see robots
systems and how to pre-prompt language models step-by-step guidance for potential repairs or when service for over a decade. Despite this, many custom- capable of performing high-risk tasks, such as tunnel
– that is, prepare them for users’ questions. This is cru- planning upcoming work,” says Dag Wästlund, Section ers still prefer human interaction. Vattenfall’s sales busi- inspections and welding. Robots can also be used in
cial for employees to quickly and easily access relevant Manager, Data Science & AI at Vattenfall R&D. ness have developed the chat bot Nina, which initially solo work situations, where a robotic colleague can
information or guidance on the next step in solving handled simple queries. Nina is now being upgraded to monitor and alert in case of an accident. Vattenfall is
a problem. Predictive analytics better understand customer situations and respond currently conducting tests with the robot dog Spot,
An important application of AI is predictive analytics. with empathy. developed by Boston Dynamics, to carry out inspection
Chatbots increasingly important By collecting and analysing data from power plant “This upgrade aims to improve the customer experi- tasks at the Forsmark nuclear power plant.
Chatbots are becoming an increasingly important equipment, Vattenfall can forecast when equipment ence by increasing the share of cases resolved by the At power plants with long travel distances, we see
feature and have several areas of use. Vattenfall is for will wear out, plan maintenance, and thereby avoid bot. It currently stands at 20–30 percent, with a goal to future opportunities for robots to perform service work
example currently developing various types of language operational disruptions while also extending hardware reach 40 percent in the coming years. The transition is and inspection rounds via remote control. They can
model systems that enable engineers to quickly get lifespan and reducing cost. For hydro power plants, expected to reduce contact centre volumes and independently resolve issues without compromising
answers to questions about previously performed ser- this is especially relevant as they function like large shorten handling times before calls are handed off to a employee health or safety – for example, during bad
vice and maintenance on power plants. This simplifies “batteries”. When electricity production exceeds human agent,” says B ernard Steenbergen, Head of Ser- weather.
the work and preserves knowledge within the company demand, the plants can pause production and store vice Operations, Customers & Solutions at Vattenfall in “Robot development is advancing rapidly, and they
– something that becomes especially valuable during water in reservoirs to be quickly restarted when the Netherlands. “Currently, customer calls take on are becoming increasingly human-like. Soon, we will
generational shifts and personnel changes. demand rises again, which places new demands on average 10–13 minutes, and the goal is to reduce that have robots operating in the physical world that can
“The goal is to collect data from previous docu service and cost tracking. by 20 percent.” assist us on an entirely new level – in an environment
mentation and inspections carried out on our hydro we are familiar with,” says Dag Wästlund.
Accelerating AI adoption and learning
Vattenfall has successfully rolled out 6,000 Copilot
licenses, with 90 percent of licensed employees
“ Robot development is advancing actively using the tool – an impressive adoption rate.
rapidly, and they are becoming To support this rollout, the company launched the
learning journey Me, Myself & AI in 2025.
increasingly human-like. Soon, we
“The initiative is the result of close collaboration
will have robots operating in the
between our IT and Learning & Development teams.
physical world that can assist us It enables employees to upskill and explore AI capa
on an entirely new level – in an bilities more effectively, and the response has been
environment we are familiar with.” very positive”, says Frida Monsén, Strategy & Portfolio,
Dag Wästlund, Section Manager, Data Science & AI Learning & Development Vattenfall.
Hydro plant
Vattenfall Annual and Sustainability Report 2025 26
Strategy / Our people
Our people
At Vattenfall, we believe in the power of our people to drive the energy transition
and enable fossil freedom. Our people strategy is designed to create meaningful
employee experiences while building the right culture, leadership and capabilities
to meet today’s and tomorrow’s challenges.
Continuous development is at the heart of our strategy. mance and inclusion. Each value is anchored in our
From mentoring and coaching to leadership journeys, people strategy which is structured around the three
we empower our employees to grow and adapt. Diver- core strategic pillars Culture, Leadership, and Capabili-
sity, Equity, and Inclusion (DEI) principles are embedded ties. Together they form the foundation of a resilient
throughout the employee lifecycle are committed to a and inclusive organisation.
workplace where everyone feels respected, valued, and • Culture – We foster a high-performing and inclusive
has a true sense of belonging. culture where everyone feels safe, valued, and
Vattenfall takes a future-focused, integrated empowered to contribute and collaborate for impact.
approach to recruitment, learning, performance, and • Leadership – We invest in our leaders to build the
reward. Using data-driven insights and inclusive prac- mindset, skills, and behaviours needed to lead effec-
tices, we attract, develop, and retain talent – supporting tively today and prepare for the future.
both individual growth and overall business perfor- • Capabilities – Through strategic workforce planning
mance. Equally essential is our mature, proactive health and a unified job architecture, we ensure that our
and safety culture, driven by a clear ambition of zero organisation has the right mix of skills in the right Core values that define
accidents, injuries, and work-related illnesses. places at the right time. how we work, lead and collaborate
Our core values – Active, Positive, Open, and Safe
– guide actionable behaviours across the organisation, • Active • Open
Read more about our Health & Safety and DEI strategies
reinforcing accountability, psychological safety, perfor- and performance on pages 109 and 121, respectively We take ownership, deliver results, We value collaboration and c uriosity,
and simplify to accelerate progress seeking diverse perspectives to improve
outcomes
• Positive
We maintain a constructive, solution- • Safe
Employer rankings and awards
oriented mindset, even in challenging We prioritise health, safety, and well-
We continuously track our employer brand progress through two leading benchmarks, Universum and the Young Professional
Attraction Index (YPAI) by Academic Work. In 2025, Vattenfall was ranked 5th among Sweden’s most attractive employers in
situations being, fostering a trusting and inclusive
the MSc Engineering category by Universum. We also saw strong progress in the YPAI ranking, climbing from 33rd place in workplace.
2024 to 15th place in 2025.
See page 121 for our latest rankings and awards in Diversity, Equity, and Inclusion
Vattenfall Annual and Sustainability Report 2025 27
Strategy / Our people
Unified people mission
“ Trading is fast-paced and
Vattenfall’s journey toward fossil freedom is enabled What our employees say exciting. You are constantly
by attracting, developing and retaining the right people Each year, our employee survey My Opinion tracks analysing variables like
through data-driven, fair, and future-focused people our employees’ degree of connection to Vattenfall’s
weather, temperature,
practices. By aligning with business strategy and lever- purpose and how each individual feel about their con
aging insights, technology, and transparent communi- tribution. The results show that 88 percent (the same
and outages, and making
cation, we deliver meaningful experiences – from share as in 2024) of our employees would recommend decisions in real time.”
recruitment to reward and continuous learning. Vattenfall as an employer. The results highlight a strong Yunji Schuster, Power Trader,
We ensure compliance, foster trust, and empower culture of collaboration and cooperation, with a high Vattenfall Energy Trading
our diverse workforce to perform at their best – today level of trust and respect, and a positive team spirit.
and tomorrow. Employees reported high levels of psychological safety
and a strong commitment to diversity, equity and inclu-
sion. The engagement index, one of our strategic targets
for 2025 (see page 11), was above the target level and
amounted to 81. Read more about Yunji’s employee journey
Remuneration Policy Attract
“Just the other day, I was
The Remuneration Policy outlines the general
standing on the fuel handling
p rinciples for compensation and benefits in machine above the reactor
Vattenfall, and is developed in line with the guide-
lines for Swedish state-owned companies. The core, making sure the fuel
remuneration in Vattenfall should be fair and con- assemblies were perfectly
sistent, reflective of the local market, legislation,
and collective agreements. It should also provide in place. It is this mix of
recognition of individual performance, corporate strategy and hands-on
objectives, and professional competency. The
Retain Develop work that makes my job
remuneration structure in Vattenfall should follow
the general market but not be market leading. so interesting.”
Remuneration in Vattenfall consists of base salary,
short-term and long-term variable incentives, Evelina Wiksten, Nuclear Fuel Engineer,
p ension, and other statutory or voluntary benefits. Forsmarks Kraftgrupp AB
The annual total remuneration ratio in Vattenfall is
23.0 (please refer to note 11, page 167).
Read more about Evelina’s employee journey
See our people strategy focus areas
and initiatives on the next page
Vattenfall Annual and Sustainability Report 2025 28
Strategy / Our people
People strategy and transformation – focus areas and initiatives
Attract Develop Retain
Attracting the right talent 1 Development through personal growth Inclusion strengthens retention and innovation
We want to attract and recruit the right people We want to develop our people to secure key competencies We want to ensure every employee feels valued and respected,
to accelerate business performance. and skills for the future and enable a culture of self-directed contributing to a culture where we live our values and diverse
learning that fuels business performance. perspectives lead to better decisions and long-term commitment.
We aim to create meaningful candidate experiences Go beyond skills training and truly embed learning into Retention insights and accountability: Turnover rates are analysed
– maximising impact and return on investment on our journey the daily work. by gender and reported to Executive Group Management, enabling
toward fossil freedom. targeted actions and informed decision-making to improve retention
• Learning platform with on-demand offerings on critical
and equity.
We are committed to being an equitable, equal-opportunity capability areas
employer, and building a diverse and representative workforce • Focused initiatives for specific target groups and stages Fair compensation for high performance2: Demonstrating continuous
in the communities where we live and work. in the employee journey improvements through feedback. See page 28.
• Learning as a mindset and skill
We seek to ensure fair access to opportunities and do not Mental health and well-being: Support includes trained mental first
• Mentoring and coaching.
discriminate based on identity, age, gender, sexual orientation, aiders, targeted mental health campaigns, and hybrid working models.
ethnicity, belief, national origin, marital or family status, disability, Other initiatives that are being tested across the organisation are
pregnancy, or any other legally protected category. meeting-free Fridays and flexible workplaces.
Strategic listening: We are continuously improving the ways in
Examples of graduate trainee programmes Examples which we listen and elevating employee voice reinforcing values
1. International Trainee Programme 1. New leadership philosophy – to clarify the mindset, skills, and behaviours
and performance culture.
2. Nordic Nuclear Trainee Programme. needed to lead effectively today and prepare for the future
2. Leadership Team Journey – to support leaders on all levels to apply Reinforcement of culture through various culture-building initiatives.
Examples of opportunities for students the new philosophy
1. Thesis projects 3. D evelopment Programme for Professionals – to foster professional
• Young professionals network – Megawatt
2. Summer jobs development and self-leadership • DEI-focused Diverse Energy Network (see page 121)
3. Internships 4. Me, myself and AI – targeted learning journeys to explore tools and ways • Women in Energy Network
4. Placements for working students of working with AI to boost productivity and creativity in your daily work
• Annual group-wide innovation competition
5. Jobbsprånget – offering internships in Sweden 5. HRBP Learning Journey – for HR professionals to serve as strategic
for foreign-born academics. business partners. • Working for Fossil Freedom Award
1. All activities at Vattenfall in the area of recruitment and selection are carried out with diversity and inclusion in mind. In addition, we take responsibility for public security and safety by having
a well-functioning and structured approach to pre-employment screening of employees as part of our recruitment processes, as well as security vetting for the security classed positions.
2. 98% of Vattenfall’s employees are covered by collective b argaining agreements.
Vattenfall Annual and Sustainability Report 2025 29
Operating
segments
0ur operating segments ........................................... 31
Customers & Solutions ............................................. 32
Power Generation .......................................................... 34
Case story: Hydro power expansion
in synergy with biodiversity .................................. 36
Wind ........................................................................................... 38
Case story: From waste to value:
circular innovation in wind energy .................. 40
Distribution .......................................................................... 42
Vattenfall Annual and Sustainability Report 2025 30
Operating segments / Segments overview
Our operating segments
Vattenfall reports on its activities based on four operating segments.
These reflect the organisational structure – the business areas – except
for the segment Power Generation, which is organisationally divided
into the Business Areas Generation and Markets.
Underlying EBIT per operating Customers & Solutions Power Generation Wind Distribution
segment Sales of electricity, heat, gas, energy ser- Hydro and nuclear power operations as Development, construction and opera- Electricity distribution operations,
SEK million vices, and e-mobility charging solutions. well as optimisation and trading opera- tion of Vattenfall’s wind farms as well as provider of energy solutions via Power-
Heat operations include district heating tions, including certain large business large-scale solar power and batteries. as-a-Service (PaaS) as well as service
Customers & Solutions
and gas-fired power plants. customers. operations business.
4,885 • One of the largest producers of off-
• A market leader in Sweden with 0.9 mil- • Operates a portfolio with 5.7 GW shore wind power in northwestern • Leading operator of regional electric-
Power Generation
lion electricity contracts and 2.8 TWh nuclear power capacity in Sweden Europe ity distribution grids and among the
heat sold, and in the Netherlands with and 11.8 GW hydro power capacity • 17.3 TWh of electricity generated top three largest actors in local grids
17,402
around 3.1 million electricity and gas across Sweden, Finland, and Germany from 7.1 GW in operated capacity in Sweden
contracts and 1.6 TWh heat sold. A total • One of Europe’s largest producers of • Distributes over 50 percent of the
Wind • Strong wind power pipeline with
of around 5.0 million electricity and gas fossil-free electricity, with 40.2 TWh electricity in Sweden through the
2.2 GW in construction and 3.2 GW
6,079 contracts in Germany with a leading from nuclear power and 37.3 TWh regional grid
in mature stage development
position as electricity supplier in Berlin from hydro power in 2025
• Forerunner in innovative solutions • About 1.0 million business and private
Distribution and Hamburg
• Provides professional asset optimisa- in solar and batteries, such as hybrid customers in Sweden.
3,280 • Operates around 1,150 MW e-mobility tion services and market access, and parks and agri-PV. • 90 percent of Sweden’s additional
charging point capacity in Sweden, is a leading player in commodities
Germany, and the Netherlands. electricity demand is expected in
Total underlying EBIT 1 trading and power purchase agree-
areas where we operate.
30,937 ments in northwestern Europe.
1. Exclusions and other contributions to the underlying
EBIT are included in the total but not illustrated here.
See page 164 for exact breakdown per segment.
See more on page 32 See more on page 34 See more on page 38 See more on page 42
Vattenfall Annual and Sustainability Report 2025 31
Operating segments / Customers & Solutions
Operating segment
Customers & Solutions
Operations The Dutch energy retail market saw increased compe-
Customers & Solutions provides electricity, heat, gas, tition in the second half of the year and the Dutch gov-
and energy solutions to retail and business customers ernment took additional steps toward public ownership
in northwestern Europe. The heat operations are com- of heating grids. Congestion remains a key topic in the
prised of the heating and condensing businesses Netherlands – for new grid connections in e-mobility and
serving district heating customers in the Netherlands, e-boilers, and for flexibility services. Vattenfall maintains
Sweden, and the UK. its strong decarbonisation focus, although many com-
Vattenfall is a market leader in Sweden – with 0.9 mil- petitors have decreased or delayed their decarbonisation
lion electricity contracts and 2.8 TWh heat delivered, ambitions and Science Based Targets initiative (SBTi)
and in the Netherlands, with 3.1 million electricity and targets. The changing regulatory landscape raised un
TijdPrijs Trend: A new off-peak gas contracts and 1.6 TWh heat delivered. We are certainty, particularly with the blend-in and production
electricity contract offering among the leading energy suppliers in Germany with of biomethane in the Netherlands.
5.0 million electricity and gas contracts. We are also
the certainty of a fixed rate
a market challenger for sales of electricity in Finland Strategy and targets
In the Netherlands, Vattenfall introduced and Norway. Vattenfall aspires to be the decarbonisation partner of
TijdPrijs Trend, an electricity contract Vattenfall has installed 1,150 MW of charging point choice, supporting customers in the energy transition
designed for consumers with high daytime capacity throughout Europe, offering e-mobility charg- through fossil-free electricity and biomethane, low-
energy usage. It offers reduced rates ing solutions for people’s homes and businesses, as carbon heating solutions, and decentralised energy
during off-peak hours – weekdays 12:00– well as public charging stations in our Swedish, Dutch, solutions for businesses and consumers. The commit-
16:00 – and weekends (April–September) and German markets. Our flexible energy solutions sup- ment remains strong to reduce emissions from heat,
with zero tariff, excluding taxes and fixed port both grid stability and the energy transition. In addi- electricity, and gas, in line with our SBTi 2030 and net-
fees. By shifting energy-intensive activities tion, we offer a broad range of decentralised decarboni- zero 2040 targets.
such as laundry or EV charging to these sation solutions such as heat pumps and solar panels. In 2025, Vattenfall began assessing ownership of its
periods, users can achieve meaningful district heating operations in the UK, Sweden and the
cost savings. The contract combines fixed- Business environment Netherlands, including potential divestment. While this
rate s
tability with dynamic pricing benefits, 2025 saw high electricity price fluctuations, partly due process will take time, the businesses continue to focus
supporting sustainable and affordable to the increase of renewables, and volatile gas prices. on offering attractive and reliable heat supply.
energy use. District heating systems remain crucial for decarbonis- Vattenfall aims to become a leading operator of e-
ing buildings and integrate sustainable energy sources mobility charging points in northwestern Europe, and is
like geothermal, biofuels and excess heat. Biomass developing flexibility services to help customers o
ptimise
prices in Sweden decreased but remain high. energy consumption and balance the energy grid.
Vattenfall Annual and Sustainability Report 2025 32
Operating segments / Customers & Solutions
Developments in 2025 and combined heat and power production, which now
While the strategic assessment of district heating oper- relies solely on biofuels and energy from recycled
ations is ongoing, Vattenfall continues to develop the materials. We also continued to develop flexibility solu-
business. In the Netherlands, Vattenfall is investing in a tions to empower our customers to use their energy
peak and back-up heat plant in Leiden to be completed efficiently.
in 2027. In Sweden, Vattenfall has inaugurated a new We signed an agreement to divest the Velsen con-
biofuel-fired district heating plant in Vänersborg. densing power plants in the Netherlands to Tata Steel,
Vattenfall retained a stable customer base in the and ownership was transferred on 1 January 2026.
Netherlands and in the Nordics. The customer base in We also sold our waste-to-energy plant in Rostock,
Germany decreased by 4 percent. In the Netherlands, Germany, to Danpower.
we launched the TijdPrijs Trend product, a hybrid con- Our EV charging infrastructure grew to 1,150 MW of
tract offering customers fixed prices for the contract charging point capacity, corresponding to 80,000
period and the flexibility of lower rates during off-peak charge points, of which 45,000 publicly accessible.
hours. Build-out of public charging concessions continued,
We advanced decarbonisation efforts and pro- especially high-powered charging stations in Germany.
gressed towards our SBTi targets. German Heat pump The Dutch build-out has been slower than planned,
installation business expanded in the North Rhine largely due to country-wide grid congestion and
Westphalia, Hamburg, and Berlin regions. We have reduced demand growth, though existing stations
eliminated fossil fuels from our Swedish district heating showed strong utilisation.
Financial results 2025 Key data Planned activities
2025 2024
Net sales decreased by 4 percent, compared to Net sales (SEK million) 181,551 188,992 • Continue developing portfolio of energy solutions
2024. Underlying operating profit decreased by External net sales (SEK million) 166,183 175,530
• Assess ownership of the heat businesses in the UK,
26 percent, primarily driven by strong competition Underlying operating profit 1 (SEK million) 4,885 6,581
Netherlands and Sweden
on the German market impacting the margins and – of which, heat operations 894 634
Electricity generation – TWh 7.3 6.9 • Advance flexibility offerings to give customers control
customer base, as well as higher gas grid costs in
– of which, fossil–based power 7.1 6.7 over how and when to consume energy, reduce costs,
Germany. This was partly offset by a higher result
– of which, biomass, waste 0.2 0.2 integrate decentralised energy solutions, and balance
from the heat business in Sweden due to revenues
Sales of electricity, TWh 108.2 106.5 the grid
from ancillary services. Electricity sales increased
by 2 percent driven by higher sales volumes to grid – of which, private customers 26.2 27.3 • Enable electrified transport by expanding our public
operators in France and more business customers in – of which, resellers 28.9 27.0 charging network.
– of which, business customers 53.1 52.2
the Nordics, partly offset by a decreased customer
Sales of gas, TWh 54.9 50.4
base in Germany. Sales of gas increased by 9 percent
Sales of heat, TWh 4.5 4.8 1. Operating profit excluding items
mainly driven by more customers in Germany
Net Promoter Score (NPS) Absolute +19 +15 affecting comparability.
and higher sales volumes to customers in the
Number of employees, (FTE 2) 5,518 5,507 2. Full time equivalents.
Netherlands.
Vattenfall Annual and Sustainability Report 2025 33
Operating segments / Power Generation
Operating segment
Power Generation
Operations Electricity prices were at new lows in northern
The Power Generation operating segment consists weden driven by strong hydrological balance and
S
of the Business Areas Generation and Markets. Busi- wind production coupled with warm weather. In
ness Area Generation manages Vattenfall’s hydro and southern Sweden and on the continent, electricity
nuclear assets. In 2025, Vattenfall’s hydro power prices rose due to higher prices for gas and carbon
Circularity in nuclear plants in the Nordics and Germany produced a total dioxide emission allowances, and lower generation
of 37.3 TWh (34.7) of electricity, supported by an from wind power, especially during the first half year.
decommissioning
installed capacity of 8,800 MW as well as 2,800 MW Daily price fluctuations were high with yet another
Recycling of materials is a central part of cir- pumped hydro capacity. At year-end, Vattenfall’s reser- record number of negative price hours caused by
cular nuclear decommissioning and where voir levels stood at 69 percent (82 percent), which more intermittent power generation. On the contrary,
Vattenfall’s ongoing projects show strong is 11 percentage points above the long-term average. forward markets remained calm despite the geopoliti-
results that contribute to conservation of Nuclear power generation in Sweden amounted to cal tensions and volatility decreased further.
resources and reduction of environmental 40.2 TWh (37.9), with a combined installed capacity
impact. Svafo, a partly owned subsidiary that of 5,500 MW. These results reflect Vattenfall’s commit- Strategy and targets
is responsible for decommissioning nuclear ment to reliable, large-scale fossil-free electricity Vattenfall’s ambition is to be a global leader in nuclear
facilities and managing legacy radioactive production. and hydro power operations, with a strong focus on
waste, achieved a recycling rate of 86 per- Business Area Markets maximises the value of safety, sustainability, and cost-efficient fossil-free elec-
cent for the R2 research reactor, rising above Vattenfall’s portfolio by optimising, trading, hedging tricity production. The safe decommissioning of closed
96 percent including conventional demoli- and sourcing for Vattenfall, third-party assets, and nuclear reactors and management of spent fuel and
tion. The Ågesta reactor recycles about half sales positions. nuclear waste are key responsibilities. Business Area
of removed material directly, with an addi- Markets enable decarbonisation by developing fossil-
tional 30–40 percent after treatment. Business environment free and renewable offerings, such as biomethane and
Brunsbüttel and Krümmel aim to recycle Hydro and nuclear power remain the most important corporate power purchase agreements (cPPAs), and
over half of controlled area material, either large-scale, dispatchable, fossil-free sources of electric- builds robust and diversified revenue streams by
directly or after external treatment. These ity in the Nordic region. The share of renewables contin- improving our optimisation and trading capabilities.
efforts highlight Vattenfall’s commitment to ues to increase and results in a greater need for flexibil- Capturing the value of flexibility in Vattenfall’s hydro
cost-effective, environmentally responsible ity and storage, while leading to more trade taking power plants and wind farms is also a key focus area.
decommissioning. place closer to the operational hour. To meet these We relentlessly strive to increase process automation
changes, the Transmission System Operators intro- by further leveraging artificial intelligence on secure
duced several new balancing products in 2025. and robust IT platforms.
Ringhals nuclear power plant
Vattenfall Annual and Sustainability Report 2025 34
Operating segments / Power Generation
Developments in 2025
Hydro power Nuclear power Markets
Investment decisions have been made for the first of Our nuclear power plants have continued to deliver More flexibility and advanced forecasting are key to
Planned activities
Vattenfall’s four hydro power expansion projects in the baseload electricity and support the grid with inertia. successfully manage the increasing short term price
Nordics. The Harsprånget power station in the river Our current planning horizon is sixty years of operation volatility. The changes to the balancing markets Hydro power
Lule älv will become Sweden’s largest hydro power for our five reactors currently in operation, but we are impacted our Nordic wind portfolio negatively but • The planning horizon for Vattenfall’s hydro
plant by capacity with a completely new turbine, featur- now investigating the possibility of extending the oper- thanks to our flexible hydro assets we overall managed power is eternal and we will continue to
increase hydro power capacity through
ing five units totalling 913 MW and a total production ating time by another twenty years into the 2060s. The well. Improved forecasting models have reduced imbal- refurbishments, upgrades, and outage
of just over 2 TWh annually. In Germany our pumped preparatory groundwork for the spent nuclear fuel ance costs of electricity sourcing for Dutch customers o ptimisation
hydro fleet has been a major contributor to supporting repository and the expansion of the Final Repository for significantly. Contracts to optimise flexibility from third- • Start of a renewal programme for the hydro
the grid by storing water in elevated reservoirs when Short-Lived Radioactive Waste (SFR) were initiated dur- party batteries were signed in 2025, for example with fleet to lower its technical age and support
continued delivery of fossil-free electricity
electricity prices and demand are low and then gener- ing 2025. The investigations and preparations for new terralayr.
to the grid and help balance the system as
ating electricity when prices and demand are high. nuclear power at the Värö peninsula in Sweden contin- Increased biomethane efforts led to sourcing deals. the share of wind and solar power increases
All Swedish hydro power plants will receive modern ued and Vattenfall announced the decision to proceed We also signed several cPPAs, such as with the chemi- • Continue to develop the PULS project,
environmental permit conditions in line with the EU with two potential suppliers of modular reactors. cals group LyondellBasell for the offshore wind power a greenfield pumped hydro plant with an
Vattenfall also signed an agreement with the Indus- project Nordlicht I and with Evonik for the solar park installed c apacity of 500 MW in Thüringen,
water framework directive. The process, previously
Germany.
halted by the Swedish government to protect hydro trikraft consortium, which acquired a 20 percent stake Juliusburg/Krukow in Germany. We continue to de-risk
power production, has resumed after new regulatory in Videberg Kraft AB, the project company that has sub- Zeevonk, a Dutch offshore wind power project. Nuclear power
amendments were introduced. mitted an application for government support for • Investigate the possibility of extending the
investment in new nuclear power. o perating time of our nuclear power plants
by another twenty years into the 2060s, which
could provide around 800 TWh of additional
fossil free e
lectricity before decommissioning
• Continue intensive efforts to develop new
nuclear power in Sweden close to the existing
Ringhals site on the west coast.
Financial results 2025 Key data
Markets
2025 2024
Net sales decreased by 7 percent compared with • Utilise our full trading and origination
last year. Underlying operating profit increased, Net sales (SEK million) 150,969 162,874 c apabilities to help de-risk Vattenfall’s
mainly due to a better result from continental External net sales (SEK million) 45,652 41,371 p ortfolio and diversify revenue streams
hedges in 2025, and higher cost for provisions Underlying operating profit 1 via for example cPPAs and partnerships
related to future nuclear obligations that had a (SEK million) 17,402 1,329 • Expand biomethane sourcing in the
n egative impact on 2024. Higher production Electricity generation (TWh) 77.5 72.6 Netherlands and Germany to comply with
volumes in both hydro power and nuclear power Sales of electricity (TWh) 7.4 8.5 SBTi targets. Secure supply of Guarantees
also had a positive impact. This was partly offset – of which, resellers 5.4 6.6 of Origin to support decarbonisation of our
by lower electricity prices affecting Nordic hydro – of which, business customers 2.0 1.9 customers
power. Gas sales (TWh) 10.1 7.5 • Continue to grow contracting of third-party
Number of employees, (FTE 2) 5,561 5,450 f lexibility with focus on batteries. Improve
valuation and pricing with new tools and
1. Operating profit excluding items affecting comparability.
m odels and ensure efficient onboarding.
2. Full time equivalents.
Forsmark nuclear power plant
Vattenfall Annual and Sustainability Report 2025 35
Case story
Case story
Hydro power
expansion in synergy
with biodiversity
Hydro power is the backbone of the Swedish
electricity system and plays a crucial role in the
transition to a fossil-free society. Vattenfall is
now investing billions in existing hydro power
stations, while extensive efforts are underway to
protect natural values along the developed rivers
– important measures for Sweden to reach its
climate goals and meet modern environmental
requirements.
As Sweden’s largest battery, hydro power plays
a decisive role in achieving net-zero emissions
“Navigating in a new energy landscape with
by 2040. With its unique flexibility and regulation more renewable energy sources like solar
capacity, it is critical for future competitiveness and wind means that the flexibility within
– both for Vattenfall and the entire European hydro power will be even more important
going forward”, says Lovisa Fricot Norén,
industry. Together with efforts to reduce environ-
Head of Hydro Nordic at Vattenfall.
mental impact, the expansion is one of several
steps to ensure sustainable production and
increased hydro power capacity.
Vattenfall Annual and Sustainability Report 2025 36
Case story
“Navigating in a new energy landscape with more free dam gate. It will be installed in Vattenfall’s hydro-
renewable energy sources like solar and wind means power station in Stornorrfors in 2028.
that the flexibility within hydro power will be even more
important going forward”, says Lovisa Fricot Norén, Significant contribution to the energy system
Head of Hydro Nordic at Vattenfall. Hydro power accounts for about 40 percent of
Sweden’s electricity production. By upgrading existing
Long-term investments ahead facilities – instead of building new ones – Vattenfall can
One of the initiatives is taking place at Harsprånget in increase production in a more climate-efficient way.
the Lule River – Sweden’s largest hydro power station in Vattenfall has systematically worked to improve its
terms of capacity. Vattenfall is investing a total of SEK power plants, and since 2016, capacity has increased
1.3 billion in two phases: first in a new transformer and by approximately 800 MW. This has been achieved
control system, and then in a completely new turbine. through renewals of turbines, generators, and trans-
When the project is completed, the station will have formers, increased availability in the power stations,
five units with a total output of 913 MW, an increase of and continuous efforts to reduce production limita-
around 100 MW, and an annual production of over tions.
2 TWh. Harsprånget is one of four expansion projects If investment decisions are made for all four growth
in Sweden, which also includes the hydro power plants projects, a planned capacity increase of an additional
Juktan, Porjus, and Messaure, currently in various 650 MW is expected by 2033. Together with the effi-
Launching of floating islands in
development phases. Vattenfall and SSAB have also ciency improvements already made, this could mean a
the Dalälven River downstream of
signed an agreement for the delivery of 120 tonnes potential addition of over 1,400 MW – a significant con- the Älvkarleby hydro power station
fossil-free steel for what will be the world’s first fossil- tribution to Sweden’s energy system as electrification
and demand for fossil-free electricity increase.
Right environmental actions in right place The regulation of rivers for power production has islands are being constructed, and nesting sites for
Four expansion projects In parallel with the technical expansion, Vattenfall is changed the appearance of watercourses, and the flow birds are being created.
working on a biodiversity programme aimed at reduc- is adapted for efficient power production. This has In the spring, Vattenfall also launched its Biodiversity
• Harsprånget, Lule River: Investment of SEK 1.3 altered the natural environment and habitats for various Transition Plan 2030 – a strategy to minimise impact,
ing hydro power’s environmental footprint through sci-
billion in a new transformer, control system,
and turbine. entifically proven knowledge. The focus is on research organisms. In upcoming environmental reviews, the work with restoration, and develop nature-based solu-
• Juktan, Ume River: Plans to resume operation and testing of concrete measures in and around the riv- greatest focus is generally on measures related to tions. The plan supports the Kunming-Montreal Global
of the power station as a pumped-storage ers where Vattenfall has hydro power production, in col- water flow and fish passages, but these measures Biodiversity Framework, which includes the innovation
plant. Permit application planned for submis-
laboration with county administrations and universities. affect only relatively small areas in the regulated water- programme for hydro power.
sion to the Land and Environment Court in the
beginning of 2026. The programme is a voluntary commitment for courses. “There are clear synergies between hydro power
• Porjus, Lule River: Feasibility phase, investigat- Vattenfall with the hope that the tested solutions can Vattenfall’s programme focuses on developing, test- expansion and biodiversity efforts. Through long-term
ing the possibility of increasing output through be used as modern environmental measures in upcom- ing, and evaluating efforts to increase biodiversity in and effective planning, investments in innovative solu-
measures in the new and/or old power station.
ing environmental reviews of hydro power. regulated waters while minimising the impact on hydro tions, and the establishment of broad collaborations,
• Messaure, Lule River: Feasibility phase, inves-
tigating the possibility of increasing flow
“Capacity and flexibility of hydro power is vital to the power production. For example, natural erosion protec- Vattenfall can contribute to a sustainable and nature-
through a new unit, new tunnels, and possible electricity system, as hydro power is an enabler for all tion is being tested near power stations, shoreline veg- inclusive climate transition,” says Helle Herk-Hansen,
widening of the outlet channel. intermittent fossil-free energy production,” says Lovisa etation is being promoted along eroded banks, floating Head of Environment, Vattenfall.
Fricot Norén.
Vattenfall Annual and Sustainability Report 2025 37
Operating segments / Wind
Operating segment
Wind
Operations on delivering our flagship projects Nordlicht and
Vattenfall operates a strong portfolio of offshore and Zeevonk, as we prepare for the start of construction
onshore wind power and continues to expand its solar and final investment decision, respectively. In onshore
capacity, complemented by co-located battery storage. wind power we focus on capturing favourable market
We operate more than 1,400 wind turbines with a conditions in the UK and Germany while monitoring
total capacity of 6.7 GW across Sweden, Germany, market developments in Sweden and the Netherlands.
the Netherlands, Denmark and the UK. In 2025, we For solar and batteries, we grow our b attery share in
increased our installed solar power capacity to 204 Germany to create additional flexibility and resilience.
Vattenfall builds solar park MW as a result of newly commissioned projects, nota-
bly driven by the largest combined solar power and Developments in 2025
that doubles as wildlife habitat
agricultural farm in Germany, Tützpatz (77 MWp). Offshore wind
Vattenfall’s new solar park in Juliusburg In March, Vattenfall took the final investment decision
and Krukow, Germany, delivers clean Business environment on Nordlicht I and II in the German North Sea, with
energy while actively promoting bio The energy market was dynamic during 2025, with Nordlicht I set to become Germany’s largest offshore
diversity. The 80 MWp installation pro- geopolitical tensions and trade wars shifting focus away wind farm. The final investment decision for Nordlicht II
duces renewable electricity that is deliv- from the energy transition. Industry decarbonisation was made on a conditional basis, pending the irrevo
ered to partner Evonik under a long-term is delayed by slower economic growth and a delayed cable permit that was received in early January 2026.
agreement. The site features beetle banks, green hydrogen economy. Data centres however, is a Vattenfall also repurchased the remaining 49 percent
water ponds, nesting boxes, wildlife corri- demand sector that sees growth globally. Vattenfall of the shares in the Nordlicht cluster that BASF acquired
dors and native hedgerows to support remains committed and continues to invest in attractive in 2024. Construction of Nordlicht I is planned to begin
wildlife migration, insects, birds, and bats. markets. The Clean Power 2030 action plan in the UK in 2026 with operations expected from 2028 and
To control measures, scientific R&D moni- sets high renewables targets, presenting opportunities. Nordlicht II is expected to be in operation in 2029.
toring will be carried out over several years. Similarly, Denmark and the Netherlands are introducing The total net capacity of the projects amounts to more
Partner Evonik will receive all of the elec- new CfD schemes supporting the development of than 1.6 GW. In the Netherlands, Vattenfall successfully
tricity produced to power their sustainable renewables. obtained a permit amendment by the Dutch govern-
chemical production, showcasing how ment to proceed with a phased development for the
solar infrastructure can regenerate eco Strategy and targets Zeevonk offshore wind project, a joint venture with
systems and decarbonise the industry. Vattenfall accelerates its journey to fossil freedom by Copenhagen Infrastructure Partners. This phased
developing, constructing and operating offshore and approach is aligned with changed market demand for
onshore wind power, and large-scale solar power with hydrogen and the evolving pace of the energy transi-
co-located batteries. In offshore wind power we focus tion. The first phase (by 2029) will deliver 1 GW of off-
Vattenfall Annual and Sustainability Report 2025 38
Operating segments / Wind
shore wind and a 6 MW floating solar pilot, while the (139 MW) and Velinga (67 MW) are currently under
second phase (by 2032) will add another 1 GW of wind, construction and plan to be operational in early 2026.
500 MW of system integration, and additional floating In Germany, more than 1 GW in permit applications
solar if technically feasible. have been submitted, and construction has started
on Wolfsberg (17 MW) while Mettenheim was awarded
Onshore wind its permit.
In the beginning of 2025, Vattenfall was granted per-
mit for the Ourack onshore wind farm (100 MW) in Large-scale solar PV and batteries
the Scottish Highlands, with construction expected Vattenfall took final investment decision for three
to start in 2028. Vattenfall has also made the final projects in Germany: Bärwalde (18 MWp solar),
investment decision to move forward with the con- Martensdorf (94 MWp solar) and Döbrichau (28 MWp
struction of Clashindarroch II (63 MW) in Scotland. solar, 45 MW battery). Vattenfall also secured 350 MW
In the Netherlands, Eemshaven West has been granted grid import capacity for batteries and 210 MWp solar
subsidy, while Echteld-Lienden received its permit. permits in Germany, strengthening the hybrid pipeline.
In Sweden, Vattenfall has submitted a permit applica- Lastly, Vattenfall secured grid access and key permits
tion for the Storlandet wind farm in Gällivare, for a total for the 254 MW Brunsbüttel Battery Project in northern
of 316 turbines and 2.9 GW capacity, making it the Germany, with a storage capacity of 700 MWh, located
one of the largest onshore wind farms in Europe. at the former nuclear power plant site.
Other Swedish onshore projects such as Bruzaholm
Stor-Rotliden wind farm
Financial results 2025 Key data Planned activities
Net sales increased by 6 percent compared to 2025 2024 • Collaborate with suppliers to mitigate supply-chain • Engage decision makers and stakeholders on
2024. The underlying operating profit increased by challenges renewable energy risks and opportunities to facilitate
Net sales (SEK million) 22,885 21,585
3 percent mainly driven by higher electricity prices. • Foster partnerships with industries for a swift transition in a sustainable (environmental,
External net sales (SEK million) 3,825 4,174
This was partially counteracted by lower subsidies d ecarbonisation and a fair and just transition social and economic) manner
Underlying operating profit 1
for German offshore wind farms. The comparison is (SEK million) 6,079 5,884 • Enhance health and safety practices for both physical
• Implement and enhance sustainability criteria
negatively affected by unavailability compensation and psychological well-being
Electricity generation (TWh) 17.3 17.1 in p rocurement tenders
and insurance compensations in 2024. Electricity
Number of employees, (FTE 2) 1,849 1,816 • Evaluate environmental impacts, mitigation and • Promote a culture of Diversity, Equity and Inclusion
generation was at a similar level as in 2024.
biodiversity enhancement of wind and solar farms (DEI) to ensure every employee feels valued, respected
1. Operating profit excluding items affecting comparability. and included.
2. Full time equivalents.
Vattenfall Annual and Sustainability Report 2025 39
Case story
Case story
From waste to value:
circular innovation in
wind energy
As the energy sector is transitioning to fossil
freedom, circularity is becoming a key driver.
Vattenfall is championing this evolution by
embedding circular principles throughout the
whole wind farm lifecycle.
The transition to a circular economy is an
opportunity with renewable energy playing an
important role in driving it forward. As one of
Europe’s major electricity producers, Vattenfall
“Circularity is not just good for the planet – it
is a contributor to this shift toward a more is essential for building resilient, future-proof
resource-efficient future. renewable energy systems”, says Catrin Jung,
Head of Business Area Wind at Vattenfall.
Vattenfall Annual and Sustainability Report 2025 40
Case story
A lifecycle approach to circularity Permanent magnets: a new frontier
Today, 85–90 percent of a wind turbine is recyclable. Further to turbine composite materials, Vattenfall has
Vattenfall aims to push this further by designing assets committed to achieving a 100 percent circular outflow
for longevity, sourcing sustainable materials, and prior- of permanent magnets from decommissioned wind
itising reuse, refurbishing, repurposing and recycling. farms from 2030 onwards. This marks Vattenfall as
By 2030, the company is advancing to target 100 per- the first developer to commit to a detailed circular
cent circular outflow of turbine composite materials economy target for these components.
such as blades, nose cones, and nacelle covers. In addi- The magnets, essential for direct-drive turbines,
tion, Vattenfall is supporting this ambition by enforcing contain rare earth elements that are both valuable
an immediate landfill ban on these components. and environmentally sensitive. Each turbine contains
“Circularity is not just good for the planet – it is essen- between one to eight tonnes of these magnets. The
tial for building resilient, future-proof renewable energy amount of 1 tonne of permanent magnets would be
systems. Whether it is onshore wind, offshore wind, sufficient for use in approximately 20,000 standard
solar, or batteries, reusing designs, refurbishing and home loudspeakers.
repurposing components, and recycling with intent help This initiative supports the EU Critical Raw Materials
us reduce waste, lower costs, and strengthen supply Act that aims to make the EU more self-reliant in mining,
chains. It is how we meet stakeholder expectations and processing and recycling of critical metals and miner-
deliver responsible energy for generations to come”, als, to protect the region from increasing international
says Catrin Jung, Head of Business Area Wind at competition for resources. Vattenfall’s Rewind exhibition
Vattenfall. “Our ambition is to preserve material value, reduce at Dutch Design Week 2025
waste, and drive responsible sourcing across the entire
lifecycle of our technologies. By setting clear circular
targets for turbine permanent magnets and composite From blades to skis: creative recycling repurposing and redesign, is the conversion of a wind
material, we are not just managing materials – we are One of Vattenfall’s most compelling examples of circu- turbine nacelle into a fully functional tiny house.
Circular economy
building a more resilient, sustainable future for wind lar innovation is the transformation of rotor blades into Unveiled during the Dutch Design Week (DDW) 2024,
framework for 2030 skis. When the Irene Vorrink wind farm in the Nether- the 35-square-meter home retains the original fiber-
energy”, says Eva Julius-Philipp, Director of Environ-
Vattenfall’s circularity strategy is built on four ment & Sustainability at Vattenfall Business Area Wind. lands was decommissioned, Vattenfall partnered with glass shell of the nacelle, making it lightweight and
interconnected pillars. the Norwegian recycling company Gjenkraft to recycle waterproof. It is equipped with a heat pump, solar
• Circular sourcing – collaborate with suppliers Strategic industry partnerships the carbon fibre from decommissioned rotor blades. panels, and second-hand furnishings. At DDW 2025,
to secure future resource availability and
To further achieve significant waste reduction and High-performance skis were manufactured by the com- Vattenfall presented Rewind, an exhibition showcasing
reduce consumption.
• Circular assets – embed circularity into design
material preservation, Vattenfall has formed strategic pany EVI Ski turning industrial waste into consumer creative ways to repurpose wind turbine components.
and management of assets to reduce resource partnerships with French company Caremag and North products. This project not only diverted composite Visitors could interact with an AI powered tool that
use, extend asset life and recycle valuable American company Cyclic Materials, both bringing materials from landfills, but also triggers innovative visualised potential new applications for turbine parts.
materials and resources.
advanced recycling capabilities and innovative technol- solution and the potential for cross-country collabora-
• Circular innovation – partner to develop new
business models and reimagine customer ogies for recovering rare earth elements. tion to foster circularity. Circularity drives resilience
offerings. “The partnerships will offer valuable insights that will By turning waste into value, Vattenfall is redefining wind
• Circular capabilities – build circular awareness enhance industry collaboration and promote broader Innovative showcases at Dutch Design Week farms’ lifecycle. Circular innovation strengthens supply
and capabilities within the organisation.
circularity,” says Anna Krakowinska-Dinis, Business Another standout initiative project, that exemplifies chains, reduces environmental and social impact, and
Development Manager, Partnerships at Vattenfall. how circularity can go beyond recycling to include supports fossil freedom.
Vattenfall Annual and Sustainability Report 2025 41
Operating segments / Distribution
Operating segment
Distribution
Operations permit processes and short lead times for grid con
Operating segment Distribution consists of Vattenfall’s nections are essential, while demand for integrated
electricity distribution operations in Sweden, Vattenfall’s energy solutions, flexibility, and advisory services
service operations business and Power-as-a-Service continue to grow.
offering. The distribution operations is a regulated busi- Despite significant uncertainty around pace of
ness supervised by national regulators. Vattenfall owns demand and regulatory development, we are con
and operates around 139,000 km of electricity grids, vinced that a sustainable and cost-efficient transition
primarily in the north and central parts of Sweden. As is essential to remain competitive – requiring collab
the largest owner and operator of regional grids and oration, innovation, and long-term investments in
one of the three largest owners of local grids, Vattenfall infrastructure, grids, and digitalisation.
distributes electricity to about one million business and
Autonomous drone and private customers – accounting for more than half of Strategy and targets
Sweden’s total electricity consumption. Vattenfall also The energy transition depends on a resilient and
AI network inspections
owns, develops, and manages electrical infrastructure robust grid and electrical infrastructure that meets
In May 2025, Vattenfall undertook a as a service. In addition, Vattenfall builds, maintains, customer demands. By accelerating the transition to
groundbreaking large-scale trial using and develops energy solutions for a wide range of fossil-free living for our customers through sustainable
autonomous drones and AI to inspect stakeholders. electrical infrastructure, we enable the energy transi-
its overhead grid across northeastern tion for customers and society. To meet customer
Götaland, covering approximately 1,876 km Business environment demands, our aim is to enable distribution of twice as
of lines and nearly 22,000 poles. The Forecasts continue to indicate an increase in electricity much electricity in our grid by 2035. To achieve this,
drones captured around 75,000 high- demand by 2045 compared with today 1. The growth efforts focus on optimising our operations whilst devel-
resolution images, which were then is primarily driven by the industry and transportation oping the business in line with customers’ needs in a
analysed by inspectors using AI tools to sectors’ need for decarbonisation, while households changing energy landscape. Addressing factors such
identify defects efficiently and accurately. and businesses face increasing cost pressures, making as regulation, permitting processes, and contractor
Building on a successful 2024 pilot, this affordability a central factor in balancing climate targets, availability will be crucial to securing long-term and
initiative demonstrates significant gains competitiveness, and social equity. stable market conditions.
in safety, operational efficiency, and Rapid technological progress drives efficiency and Our strategy is deeply rooted in the sustainability
environmental impact. innovation but also brings new challenges related to agenda, contributing to a just energy transition that
cybersecurity and digital dependencies. Transparent benefits individuals, society, and the environment.
1. Energiföretagen Sverige, Sveriges elbehov 2045 (2023).
Vattenfall Annual and Sustainability Report 2025 42
Operating segments / Distribution
Going forward, our prioritised focus areas are diversity, and address grid capacity challenges. These record-
equity and inclusion, enhancing biodiversity, climate high investments will reduce outages, enable new
impact and circular resource flows and the health and housing, business electrification, charging infrastruc-
safety of our contractors and employees. The focus ture, and renewable energy integration, while introduc-
areas are grounded in a respect for human rights and ing smart flexibility services for efficient grid use.
responsible business conduct. Efforts to promote and realise targets across the
value chain were reinforced, with new projects
Developments in 2025 launched for sub-contractors to help promote sustain
Regional grid connection requests remained at a high ability targets with strong focus on health and safety.
level, with continued demand from both new requests Increased demand for detailed sustainability reporting
and a growing number of ongoing cases. Local grid has led us to adopt new tools that help stakeholders
connection requests also remained on a high level, better understand operational impact.
reflecting strong demand and a continued need for Two businesses were divested during the year: the
reinforcement and expansion of the electricity grid. Power-as-a-Service (PaaS) operations in Denmark
During the year, SEK 10.8 billion was invested to which was sold to Navitas Digital Heat ApS and the UK
strengthen, expand, and modernise the grid, improving Independent Distribution Network Operator (IDNO),
reliability and capacity. In 2025, Vattenfall carried out Vattenfall Limited, which was sold to Eclipse Power
its largest investment programme to date in order to Group. Both transactions include the transfer of
enable electrification, support the energy transition, employees, existing customer contracts, and opera-
tional assets.
Financial results 2025 Key data Planned activities
2025 2024
Net Sales increased by 12 percent compared with • Major annual investments of in average SEK 10 billion encouraging more balanced consumption patterns,
2024. The underlying operating profit increased by Net sales (SEK million) 20,035 17,957 through 2030 in regional and local grids to reduce reducing strain during peak hours, and supporting
27 percent. The profit was positively affected by External net sales (SEK million) 18,607 16,764 o utages, enable new housing, industry electrification, a more efficient and sustainable operation of the grid.
higher revenues as a result of tariff adjustments Underlying operating profit 1 charging infrastructure, and renewable energy integra- According to legal requirements, all electricity grid
for the local grid, lower costs for grid losses, and (SEK million) 3,280 2,581 tion, while introducing smart flexibility services for companies in Sweden must introduce a new pricing
improved result from the services operations Investments (SEK million) 11,634 10,374 more efficient grid use model that includes a capacity tariff, no later than
b usiness thanks to new contracts. This was partly SAIDI 2 153 123 1 January 2027
• Strengthen the electricity grid’s reliability, resilience,
offset by higher depreciation as a result of growth. SAIFI 3 1.7 1.9 and continuity of supply through reinvestments and • Continue implementing biodiversity enhancement
Number of employees, (FTE 4) 4,326 4,315 regular maintenance initiatives that support bees and butterflies at and
• Introduce a capacity-based fee for most customers around our substations, as well as within and along
1. Operating profit excluding items affecting comparability.
connected to the local electricity network as a key transmission corridors.
2. SAIDI: System Average Interruption Duration Index.
Refers to Sweden. measure to optimise electricity network usage,
3. SAIFI: System Average Interruption Frequency Index.
Refers to Sweden.
4. Full time equivalents.
Vattenfall Annual and Sustainability Report 2025 43
Risk
management
Risk management .......................................................... 45
Strategic and non-financial risks ..................... 46
Financial risks .................................................................... 53
Vattenfall Annual and Sustainability Report 2025 44
Risk management
Risk management Enterprise Risk Management process
At Vattenfall, we apply a conscious and balanced approach Strategy and
to risk-taking, assessing business transactions from both objective setting
profitability and risk perspectives.
Review Event
activities identification
Reporting and
Communication
Vattenfall’s risk management practices are managed The objectives for each business area are based
based on a sound risk culture that supports the on Vattenfall’s strategy and are established during
achievement of our short-term objectives and our long- the business planning process. When setting these Risk Risk
term strategic goals. In accordance with the Swedish objectives, risks that might hinder their achievement response assessment
Corporate G overnance Code and our Risk Policy, are identified. In our risk management process, risks
adopted by the Board of Directors, Vattenfall’s risk are analysed with respect to both financial and non-
management framework ensures thorough identifi financial consequences. These risks are then assessed Risk tolerance
setting
cation and management of risks and the adherence against our risk tolerance, and decisions are made
to an acceptable risk exposure. regarding suitable risk measures. Furthermore, each
business area’s most important risks and risk manage-
Strategy and objective setting Risk tolerance setting
Enterprise Risk Management ment measures are followed up on as part of the regu-
What are we trying to achieve? What level of risk is acceptable?
The purpose of Enterprise Risk Management (ERM) is lar monitoring. After aggregating the risks, a composite
to manage risks to which Vattenfall is exposed in order overview of our risk situation is produced. The potential
Event identification Risk response
to support value creation, ensure risk awareness, and financial impacts are linked to financial key data used
What might affect the achievement of What should we do about it?
balance risk against reward. ERM at Vattenfall involves for steering of the company. Information is provided on
Vattenfall’s strategy and objectives?
analysing and monitoring all types of risks. It is based a regular basis to the Executive Group Management
Review activities
on international risk management standards such as and the Board of Directors.
Risk assessment Did it work?
the framework from the Committee of Sponsoring
Which of these events are the most
Organisations of the Treadway Commission (COSO)
important? Reporting and communication
and the “three lines” model (see page 63).
What is the status?
Who needs to know about it?
Vattenfall Annual and Sustainability Report 2025 45
Risk management / Strategic and non-financial risks
Strategic and non-financial risks The Vattenfall strategy wheel illustrates
our integrated business model and what
is needed to succeed with our strategy.
Connecting
Continued geopolitical instability across the world chains as well as uncertain technology costs and avail- and optimising
the energy
and overall challenging market dynamics are making ability are affecting the energy sector. The energy tran- system
security and defence, as well as industry competitive- sition has slowed down, but climate goals are set to
ness top priorities at EU level. remain at EU level, and to reach the target of climate
Uncertain economic development and outlook in neutrality by 2050 the transition needs to pick up Driving
Securing
decarbonisation
Europe as well the political tensions and fragmentation again. However, the pace at which it will do so, remains fossil-free
with our
To enable the energy
in Europe are affecting Vattenfall. Furthermore, pressure uncertain. With the increased focus on competitive- customers and
supply
partners fossil freedom
on international trade relations and strained supply ness, security, and resilience, and increasingly chal-
that drives
lenging investment conditions for new renewable society forward
energy projects, it is important to time and prioritise
investments very carefully.
Our approach With the ongoing growth in intermittent renewable
Conduct
to sustainability risks generation and continuous changes in the energy mar- Motivating and
high-performing
empowering
ket structure, for example decentralisation, electrifica- our people
operations
Management of environmental, social, and govern- tion, and sector coupling, Vattenfall’s risk/return profile
ance (ESG) risks are seen as an integral part of the
is changing. It is widely known that more investments in
Enterprise Risk Management (ERM) framework of
Vattenfall. In 2024, Vattenfall conducted a compre- fossil-free power generation, distribution and storage
hensive Double Materiality Assessment (DMA) for are essential for the European energy transition, as well
ESG topics in accordance with the Corporate Sustain Learn more on page 17
as proper energy management systems. The growing
ability Reporting Directive (CSRD) and the European
Sustainability Reporting Standards (ESRS). This demand for fossil-free electricity and flexibility presents
includes an assessment of sustainability-related risks not only risks but also opportunities for Vattenfall,
and opportunities that are financially material to which influence both our operational as well as our seeking to strike an optimal long-term balance between existence in 2026 beyond the generic probability of
Vattenfall, in addition to the assessment of material
impacts. In 2025, a light update of the DMA was per-
strategic activities (see also CSRD disclosures; E1 mate- the various portfolio components. We believe that our default associated with our credit rating.
formed. An overview of all material topics can be rial opportunity related to the energy transition and risk integrated business model offers a diversified risk pro- In the below sections, we have highlighted key risks
found on page 82. Out of these, four material risks related to the climate transition on page 85). file, as value can shift from a business unit in one part per strategic focus area as well as how they are man-
were identified (belonging to the environmental top-
In this chapter we focus on the risk dimension. Long- of the value chain to another over time. In addition, the aged. Arrows indicate how the risk for Vattenfall devel-
ics), and these are also highlighted in the overview
below. A detailed description of the DMA, including term market price risk remains one of our largest risks combination of power generation and customer sales oped during the year. Many of the risks are directly inter
methodology and results, is presented in the sustain- (our risk management regarding short-term and mid- offers a natural hedge. Furthermore, part of our reve- related with corresponding opportunities. For example,
ability statement (from page 80). The process and
term market price risks is described on page 53). Addi- nues come from stable, regulated activities, such as a failure to decarbonise our asset portfolio at the pace
result of the DMA, as well as the overall efforts to com-
ply with the reporting standards, will form the basis tionally, the relative importance of market price risks is electricity distribution, which improves the overall risk required by our stakeholders is a risk that might result
for continued improvement related to the manage- increasing for Vattenfall because of the significant picture even further. Vattenfall has a robust governance in loss of customers. A successful asset transformation,
ment of sustainability-related risks and opportunities changes in subsidy schemes, with less subsidies lead- in place to create transparency on potential risks at an on the other hand, could be a competitive advantage as
in Vattenfall’s strategy and governance processes.
ing to more market risk exposure – especially evident early stage and to take suitable measures to deal with it will strengthen our reputation as a decarbonisation
within offshore wind. To mitigate these risks, we are them. There is no recognisable threat to the company’s partner.
Vattenfall Annual and Sustainability Report 2025 46
Risk management / Strategic and non-financial risks
B
Overview of risks
Risks related to 7
g
A. Driving decarbonisation with our customers and partners
lon
Connecting
1 Loss of market share and customers. → 3 and optimising 6
2 Insufficient regulatory framework to stimulate customers to decarbonise fast enough. → the energy
id
m
3 Technologies to decarbonise do not reach competitiveness. → system 9 10
4 Customers unable to pay their invoices or even going bankrupt. → A 5 C
t
or
sh
B. Connecting and optimising the energy system 8 11
Driving 4
5 Inability to ensure adequate security of supply because of grid constraints. ↗ Securing
decarbonisation
6 Inability to adapt appropriately to intermittent electricity generation and flexible demand. → fossil-free
with our
7 Continued regulatory instability (distribution revenue frames in Sweden). → 2 energy
customers and
supply
C. Securing fossil-free energy supply
8 Reduction of electricity consumption due to macroeconomic downturn. ↗
partners
2025 13 12
9 Political risks such as changes in energy market design. → 1
10 Risk of re-introduction of subsidies causing a decrease of long-term market prices. ↗ 14
11 Not being able to expand the fossil-free generation due to difficulties permit processes. → 23 15
Pressure on economic feasibility of projects due to surging prices for input material. → 16
12
18
13 Not reaching growth targets due to sustainability risks in the supply chain. → 22 19
Motivating and 20 Conduct
short
D. Conduct high performing operations
empowering high-performing
14 Operational asset risks (power availability, dam failure, hazardous emissions). → our people operations
15 Risks due to new or changing regulations. → 21 17
E D
mid
16 Geopolitical and supply chain risks. ↗
17 Risk of project delays and cost overruns. →
18 Security and resilience risks (including physical sabotage, and cyber risks). ↗
long
19 Not complying with regulations (for example GDPR and the AI Act). ↗
The graph outlines key risks split by
20 Fraud and unethical conduct. → strategic focus area and the time
horizon for when each risk might start
E. Motivating and empowering our people to have an impact on Vattenfall.
21 Inability to secure the competence needed. →
Long: > 5 years
22 Work environment risks (accidents, incidents, mental health). → Mid: 1–5 years
23 Inefficiencies and inability to ensure safe working environment due to pandemic risk. → Short: < 1 year
The arrows indicate how the probability and/or effect for Vattenfall developed during the year.
Vattenfall Annual and Sustainability Report 2025 47
Risk management / Strategic and non-financial risks
A. R
isks related to driving decarbonisation Risk response activities 2025
• Contributing to the phase-out of fossil fuels in the
with our customers and partners • Reducing our cost-to-serve and maintaining econo-
A mies of scale through digitalisation and by growing entire transport sector by supplying fossil-free elec-
We promote electrification and decarbonised energy tricity and developing charging infrastructure. For
our customer sales business (see page 32).
solutions in areas where we have a competitive advantage. example, in Hamburg Vattenfall is developing a new
We do this together with our customers and partners. • Supplying large customers with renewable energy
public charging network and setting up new fast
and supporting them in achieving their sustainability
charging points for e-taxis at Lidl. To further acceler-
goals. In this respect, Vattenfall is offering corporate
ate the expansion of our public charging network
Time Power Purchase Agreements (PPAs) – for example,
Risks Trend horizon we built up a partnership with Mondial Kapital
one with the chemicals group LyondellBasell was
verwaltungsgesellschaft mbH in Germany.
Mid signed, providing fossil free electricity from the
1 isk of loss of market share and customers because of inability to meet expectations of
R
Nordlicht I offshore wind farm off the German coast. • Developing energy solutions. Vattenfall helps for
customers and partners. This risk also refers to the environmental risk of negative effects
Deliveries are planned from 2028 (see page 35). example electricity consumers in Germany to actively
due to not meeting our climate targets as described in the sustainability statement under
control and optimise their generation, storage, and
E1 (Transition climate risks) on page 85. • Partnering with industries to electrify and decarbon-
consumption with a new app. The app has been
ise industrial processes. One example is HYBRIT,
developed by Vattenfall and has for instance been
Long where a pilot project for storage of fossil-free hydro-
2 isk of insufficient regulatory frameworks to stimulate our (industrial) customers
R launched to customers of the energy company
gen gas for production of fossil-free iron and steel on
to decarbonise fast enough, for instance because of a slow specification and Stadtwerke Bochum.
an industrial scale has been completed. This project
implementation of Clean Industrial Deal by EU member states. Also, this risk refers to
could result in reduced operating costs of hydrogen • In Boden on the Lule River, a circular system is being
the environmental risk of negative effects due to not meeting our climate targets as
production. tested where excess heat from a local data centre is
described in the sustainability statement under E1 (Transition climate risks) on page 85.
used to grow insects – which in turn become food for
salmon and trout in Vattenfall’s compensation farm.
3 isk that technologies to decarbonise with, for example electricity, biofuels, or hydrogen
R Long
do not reach cost competitiveness.
4 Risk that customers are unable to pay their invoices or even go bankrupt. Short
Trend Increase Unchanged Decrease
Time horizon The time horizon for when each risk might start to have an impact on Vattenfall; short-, mid-, or long-term.
Boden hydropower plant
Vattenfall Annual and Sustainability Report 2025 48
Risk management / Strategic and non-financial risks
B. Risks related to connecting and
B
optimising the energy system
We are focusing on maximising the value
of flexibility and promoting a stable and
cost-efficient grid infrastructure.
Time
Risks Trend horizon
5 isk of inability to ensure adequate security of supply because of grid capacity
R Short
constraints, extreme weather conditions, or delays in permitting processes for
building new grids. This risk also refers to the physical climate risks as described
in the sustainability section under E1 on page 85.
6 isk of inability to adapt appropriately to new technologies (including process
R Mid
automation) to cope with the increasing share of intermittent electricity generation
and flexible demand.
7 isk of continued regulatory instability regarding the revenue frames for electricity
R Long
distribution in Sweden.
Trend Increase Unchanged Decrease
Time horizon The time horizon for when each risk might start to have an impact on Vattenfall; short-, mid-, or long-term.
Risk response activities 2025
• Development of smart solutions that can reduce • Further development and implementation of
the frequency and duration of outages and enable algorithms for physical planning, optimisation, and
customers to monitor and control their energy dispatch areas to support management of flexibility.
consumption. • Implementation of solutions for a more efficient use
• Implementation of load steering and new tariffs that of the power grid for example under the Zeevonk joint
support flexibility. venture, solar and wind is planned to share the same
• Influencing work related to changing regulation to grid connection (see pages 38 and 39).
improve permitting and connection processes.
• Complementary solutions such as Power-as-a-
Service help bridging the gap until new infrastructure
is in place.
Vattenfall Annual and Sustainability Report 2025 49
Risk management / Strategic and non-financial risks
C. R
isks related to securing Risk response activities 2025
• Influencing work addressing the need for shorter
fossil-free energy supply • Prioritised lifetime extension of our existing Swedish
C nuclear fleet (see page 35). permitting processes.
Our focus is on growth in renewables,
• Assessing the opportunity for building new nuclear in • Ongoing research at our research and development
maximising the value of our existing fossil-free
Sweden and taking steps to enable co-ownership unit in Älvkarleby (Sweden), for example related to the
assets and implementing our CO2 roadmap.
with industry and the Swedish state. Furthermore, reduction of the carbon footprint of cement produc-
we have decided to proceed with two suppliers of tion without compromising quality (see page 24).
modular reactors (see page 35). • Continued improvements of sustainability perfor-
Time
Risks Trend horizon • Final investment decision taken for the Nordlicht I mance, including environmental action plan, human
and II wind farms in Germany (see page 38). rights action plan, and sustainable supply chain
8 isk of reduction of electricity consumption due to macroeconomic downturn
R Short
roadmap (see page 107).
• In the Netherlands, Vattenfall subsidiary Feenstra
or other negative developments. • To ensure diversification of the supply chain and
tests a modified generator that runs on a mixture of
70 percent water and 30 percent bioethanol that can availability of resources, we cooperate with suppliers
9 olitical risks such as changes in energy market design due to challenges in the energy
P Mid
supply electricity and heat. and peers, for example through the First Movers
market caused by networks stressed by increasing intermittent generation, national Coalition.
• In the UK, Vattenfall has made the final investment
deviations in implementation of European energy policies and potentially increasing
decision to move forward with the construction
costs of electricity.
of Clashindarroch II wind farm in Scotland (see
page 39).
10 isk of re-introduction of subsidies causing a decrease of long-term market prices
R Long
with corresponding repercussion on existing portfolio and ongoing investments.
11 isk of not being able to expand the fossil-free generation as planned because of
R Long
difficulty in securing permits for example due to national security reasons or biodiversity
impacts, such as environmental risks connected to negative impact on species
as described in the sustainability section under E4 on page 96.
12 isk that economic feasibility of projects come under pressure because of surging
R Long
prices for input material and procurement risk, including risk of increasing competition
for critical and low carbon materials for construction of fossil-free assets. This risk also
refers to the environmental risk of negative effects due to scarcity of resources as
described in the sustainability section under E5 on page 102.
13 isk of not reaching growth ambitions, for example in the solar business, due to
R Short
sustainability risks in the supply chain, such as suppliers failing in sustainability
Ringhals nuclear power plant
screening.
Trend Increase Unchanged Decrease
Time horizon The time horizon for when each risk might start to have an impact on Vattenfall; short-, mid-, or long-term.
Vattenfall Annual and Sustainability Report 2025 50
Risk management / Strategic and non-financial risks
D. Risks related to conduct Risk response activities 2025
high-performing operations • Monitoring of regulatory changes and market devel- • Vattenfall secured an operating site in Eemshaven,
opment trends as well as analysis of short-term and the Netherlands, for the German projects Nordlicht I
We are focusing on being both competitive and
long-term impact ensures that we stay close to the and II.
cost-effective and leveraging opportunities in
D latest developments on the regulatory side and • Vattenfall has established a systematic, risk-based
digitalisation. We are also taking social and environ-
assess potential changes early on. To handle the fact and holistic approach to security and resilience
mental responsibility throughout our value chain.
that the pace of the energy transition has shifted, (including physical, personnel and information- and
Vattenfall for instance agreed with the Dutch govern- cyber security measures) and we actively work to
Time
Risks Trend horizon
ment on a permit amendment to align the Zeevonk assess the criticality of our business operations in
offshore wind power project with changed market order to determine and prioritise what to protect and
14 perational asset risks, such as power availability, dam failure, or environmentally
O Short demand for hydrogen (see pages 38 and 39). how.
hazardous emissions. • Monitoring and analysis of stakeholder expectations • The updated NIS2 Directive and the CER Directive
and proactive engagement and activities. are being implemented across our organisation;
15 isks due to new or changing regulations, including sustainability and security related
R Mid • Management of operational asset risks involves a these directives increase the regulatory demands
regulations, for example the Corporate Sustainability Due Diligence Directive (CSDDD) systematic inspection programme, continuous con- on security and resilience.
and the consequences of the different simplification Omnibuses. trol of plant conditions and effective maintenance. • We are carrying out regular, mandatory security
New methods for monitoring and predictive mainte- awareness trainings for all employees. In addition, this
16 eopolitical and supply chain risks, for example change in tariffs, constraints in supply
G Short nance are being deployed, which further improves year we have also conducted dedicated trainings to all
chains, conflicts, and sanctions. our resilience to disruptions. senior managers within Vattenfall (as required by NIS2).
• Applying and improving business continuity • We have worked actively during the year to
17 isk of project delays and cost overruns due to deteriorating project prerequisites
R Mid management processes. strengthen our resilience capabilities, including
during long lead times of large projects. • Review of common processes to leverage synergies preparations for increased readiness and war.
and improve long-term competitiveness throughout • We increase awareness and ensure compliance with
18 ecurity and resilience risks including physical sabotage, cyber risks, data leakage, as
S Short the company. the Code of Conduct and Integrity, for example
well as new and amplified risks stemming from adoption of Generative AI. • Group-wide projects for the implementation of risk through trainings.
management and other processes for new and • We continuously monitor the threat landscape, includ-
Short upcoming sustainability regulations, for example ing incidents, and cyber-attacks and we are actively
19 isk of not complying with regulations, for example GDPR, AI Act, EU Network and
R
CSDDD. working with implementing safeguards and protective
Information Systems Directive (NIS) 2, and EU Critical Entities Resilience (CER) Directive.
• Regular review of internal instructions, for example measures.
Short regarding governance or roles and responsibilities. • To address emerging risks arising from the adoption
20 isk of fraud and unethical conduct which could disrupt operations and have negative
R
impact on people and environment. • Long-lasting efficiency improvements across the of Generative AI, an AI Policy has been established, we
entire company through SAP upgrade. have centrally steered piloting-initiatives, defined
standards and technical measures to ensure ethical
Trend Increase Unchanged Decrease
Time horizon The time horizon for when each risk might start to have an impact on Vattenfall; short-, mid-, or long-term. and secure use, as well as dedicated and mandatory
training for all employees.
Vattenfall Annual and Sustainability Report 2025 51
Risk management / Strategic and non-financial risks
E. R isks related to motivating and
empowering our people
We are focusing on securing necessary competence while
E improving the employee journey and providing a safe work
environment.
Time
Risks Trend horizon
21 Inability to secure or retain the competencies needed to succeed in delivering Mid
on our strategy and targets.
22 ork environment risks related to accidents and incidents as well as risks regarding
W Short
the mental health of employees.
23 Inefficiencies and inability to ensure safe working environment due to pandemic risk. Short
Trend Increase Unchanged Decrease
Time horizon The time horizon for when each risk might start to have an impact on Vattenfall; short-, mid-, or long-term.
Risk response activities 2025
• Attracting new talent and competencies, retaining • Monitoring and controlling that health and safety
people with critical capabilities and developing the risks are covered in the various risk management
skills of our employees (see pages 27–29). systems of the respective units. We perform
thorough analyses of past accidents and work
• Diversity, Equity, and Inclusion activities (see pages
to prevent future issues (see page 109–110).
121–123).
• Group-wide mental health programme with
• Annual employee survey conducted to monitor
seminars to increase awareness (see page 29).
key aspects from the employees’ perspective and
contribute to guide the development of Vattenfall • Digital events for employees, covering many areas
as a workplace (see page 28). of Vattenfall’s operations, climate ambitions, and
business opportunities.
• We defined and aligned new expectations regarding
leadership, collaboration, and delivery of results to • Offering of regular trainings for first aiders, as well as
improve leadership throughout the group. and fire protection and evacuation assistants.
• Offering a flexible work situation and adapting to chang- • Offering of flu vaccination by health management
ing work habits as well as our employees’ needs, such for Vattenfall employees in Germany.
as remote working and smarter working concepts.
Vattenfall Annual and Sustainability Report 2025 52
Risk management / Financial risks
Financial risks
Market risk situation, local supply and demand as well as political To measure exposure to market risk, we use methods consists of spread production (power, gas, and emis-
decisions. We are active in the wholesale trading mar- such as Value at Risk (VaR) and Gross Margin at Risk sions positions), as well as wind power production and
– commodities including electricity
ket and hedge our electricity, gas and emission expo- (GMaR) along with various stress tests. pumped hydro storage.
Market risk for electricity and commodities refers to the sure through physical and financial forward contracts
risk of adverse changes in electricity or commodity and long-term customer contracts. The latter pertain to Portfolio structure Ancillary trading
prices and is monitored daily. Market risk includes the longer time horizons where there is no liquidity in the The dominant market exposure in Vattenfall’s current In addition to the market risk mentioned above, the CEO
risk of a change in volumes, especially in the Nordic futures market and are typically ten years bilateral con- portfolio is linked to Nordic nuclear and hydropower has a risk mandate from the Board of Directors to allow
market where hydropower production is highly depend- tracts to either hedge new renewables projects or the generation. We generate a substantial share of regu- some discretionary risk taking and trading. Most of our
ent on precipitation. existing asset portfolio. The majority of hedge volumes lated revenue from electricity distribution and heat as risk exposure in the ancillary trading portfolio is based
for forecasted production are executed in the nearer well as (partially) subsidised wind and solar power, on market valuation (mark-to-market). In cases where
Risk response activities term horizon, with a lower portion of hedge volumes fur- which diversifies the risk exposure in our portfolio. no market prices can be observed, modelled prices are
Through our asset ownership and sales activities, we ther out. The Vattenfall Risk Committee (VRC) decides In addition, Vattenfall has thermal generation market used (mark-to-model). Mark-to-model positions arise
are mainly exposed to electricity, gas and CO2-emis- how much of the generation should be hedged within risk exposure from continental gas assets, being the mainly in asset and sales-related portfolios (see Note
sions allowance prices, which in turn are affected by the boundaries set by the Board of Directors. Sales price spreads between electricity and fuel/emissions. 30 to the Consolidated accounts, Financial instruments).
numerous factors, such as the global macroeconomic volumes are to a large extent hedged back-to-back. This has a lower risk profile than the outright power Management of such valuation models is strictly regu-
exposure in the Nordic countries. Price risk for uranium lated, and approval is required from the risk organisa-
is limited, as uranium accounts for a relatively small tion before they may be applied.
share of the total cost of nuclear power generation.
Nordic market
Vattenfall uses hedging instruments to steer the market
price risk of the Nordic production portfolio, which
mainly consists of outright power positions from
nuclear, hydro, and wind generation. The table to the
right shows the average indicative Nordic hedge prices
and the estimated Nordic hedge ratio as per 31 Decem-
Average indicative Nordic hedge prices
ber 2025. The volume risk is managed through analy-
and hedge ratio as per 31 December 2025
ses and forecasts based on historical weather data,
including factors such as precipitation and snowmelt. 2026 2027 2028
Hedge prices, EUR/MWh 40 40 39
Continental markets Hedge ratio, % 53 27 7
Similar to the Nordic market, Vattenfall uses hedging
instruments to manage the market price risk of the
continental electricity production. This portfolio mainly
Vattenfall Annual and Sustainability Report 2025 53
Risk management / Financial risks
Funding liquidity risk Maturity profile for Vattenfall’s loans as per 31 December 2025 1
SEK million
Funding liquidity risk is the risk of Vattenfall not being higher) shall be available. As per 31 December 2025
35,000
able to finance short-term payment commitments or its available liquid assets and/or committed credit facilities
longer-term capital needs. This may arise if asset values stood at 36 percent (43 percent 2024) of consolidated
30,000
at maturity do not match liabilities and other derivatives. net sales.
25,000
Risk response activities Long-term financing
20,000
Access to capital and flexible financing solutions is The maturity profile of our debt portfolio is shown in
ensured through several types of debt issuance pro- the chart to the right. Vattenfall is committed to main- 15,000
grammes and credit facilities. taining financial stability, which is reflected in the long-
term targets for our capital structure. On 17 September 10,000
Short-term financing 2025, Moody’s affirmed Vattenfall’s long-term A3 and
5,000
The Group target for short-term accessibility to capital short-term P-2 ratings, and its Baa2 rating for hybrid
is that funds corresponding to no less than 10 percent bonds. On 15 December 2023, Standard & Poor’s 0
of consolidated net sales, or the equivalent of 90 days affirmed Vattenfall’s long-term BBB+ rating and short- 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47
stressed liquidity needs of the business (whichever is term A-2 rating as well as its BB+ rating for hybrid bonds. Debt (excl. hybrid capital) Hybrid capital (first call date) Undrawn back-up facilities
1. Excluding loans from minority owners and associated companies.
Interplay between market, credit, and liquidity risk Borrowing programmes and committed credit facilities
Maximum aggregated amount, Used Reported external
Commodities prices fluctuate on an ongoing basis. Due changes as well. In extreme market price movements in millions portion, % liabilities, SEK million
to the nature of our core business activities, we are natu- this can lead to immediate large cash out- or inflows that Currency 2025 2024 2025 2024 2025 2024
rally exposed to the resulting market risk. As described, need to be either financed in the short-term or deposited
we hedge via wholesale term-market contracts and long- with financial institutions that may not want the cash. If Borrowing programmes
term customer contracts to reduce this market risk. the resulting impact for a counterparty is that this drives Commercial paper SEK — — — — — —
These contracts in turn increase credit risk as there is a them into their own liquidity shortage, this subsequently Euro Commercial paper EUR 10,000 10,000 1 1 — —
risk that these counterparties may not meet their obliga- translates back into a credit risk for Vattenfall. Reducing Euro Medium Term Note EUR 10,000 10,000 27 37 30,003 43,013
tions to us. One common method to manage credit risk is credit and liquidity risks by lower hedge activity, leads
Committed credit facilities
the use of collaterals (margin call agreements for whole- again to an increase in market price risk. Thus, all three
Revolving Credit Facility1 EUR 2,000 2,000 — — — —
sale markets). Whilst these are useful tools for the miti- risks (market, credit, and liquidity risk) are interlinked and
mutually dependent. The management of this triangle of
Committed back-up credit facilities1 EUR 1,000 — — — — —
gation of credit risk and are also required by exchanges,
it can increase the Group funding liquidity risk if the over- market, credit, and liquidity risk requires an especially 1. B ack-up facility for short-term borrowing.
all spread between collateralised and non-collateralised well-balanced approach and clear steering principles
Committed credit facilities consist of a EUR 2.0 billion Revolving Credit Facility that expires on 31 October 2028 and a EUR 1.0 billion
contracts increases. With fluctuating prices, the amount which Vattenfall has established by means of a dedi-
c ommitted credit facility that expires on 20 November 2027. The maturity structure p ertains to the debt portfolio excluding loans from
of collateral that needs to flow between counterparties cated risk management process. minority owners and associated companies, which amounted to SEK 7,343 million for 2025 (7,221). Further information about the maturity
structure of loans is provided in Note 31 to the Consolidated accounts, Interest-b earing liabilities and related financial derivatives.
Vattenfall Annual and Sustainability Report 2025 54
Risk management / Financial risks
Credit risk Interest rate risk Interest rate sensitivity 1
Credit risk is the risk that a counterparty cannot or will shown in the chart below in SEK million. The chart Interest rate risk refers to the risk of negative impact SEK million
300
not meet its obligations to Vattenfall, the risk exists shows exposures to Vattenfall’s counterparties from changed interest rates on the consolidated
across all activities. where the exposure is greater than SEK 50 million income statement and cash flow. 200
per counterparty, by rating classification accord-
100
Risk response activities ing to Moody’s rating scale. Counterparties are Risk response activities
We have a strict framework for governing and reporting reviewed and approved in line with Vattenfall’s We quantify interest rate risk in our debt portfolio in 0
credit risks to ensure that risks are monitored, meas- credit mandates and policies. Smaller exposures terms of duration, which describes the average term
ured, and optimised so that the total credit exposure is are considered to have such a large diversification of fixed interest. The target duration of three months to –100
kept at an acceptable level. The company’s credit risk effect that the net risk for Vattenfall is judged to four years is based on the company’s current financing 31/12/2025
–200
management involves counterparty analysis, reporting be low. Procurement and heat sales exposures need and desired interest rate sensitivity in net interest 31/12/2024
of credit risk exposures, contract negotiations, and pro- are not included. Other financial assets (that are income/expense. The duration of the Vattenfall’s debt –300
–2 –1.5 –1 –0.5 0 0.5 1 1.5 2
posals for risk mitigation measures, such as requiring neither past-due nor impaired) are considered to portfolio at year-end was 3.81 years (4.49) including
collateral. Credit risk exposures per rating class is have good creditworthiness. hybrid capital. See the table for the remaining fixed 1. Excluding loans from minority owners and associated companies.
All figures in nominal amounts.
rate term in our debt portfolio.
Interest rate sensitivity
The interest rate sensitivity analysis shows how method and an assumption that interest rates would
changes in interest rates affect the Vattenfall Group’s rise by 100 basis points, the impact on the Vattenfall
interest income and expenses (before tax) within a Group’s equity after tax would be SEK –13 million (–21),
12-month period given the Group’s current structure including derivatives and Hybrid Capital, but excluding
of borrowing at fixed interest rates. With the same loans from minority owners and associated companies.
Counterparty exposure by rating class
SEK million
50,000
Remaining fixed-rate term in debt portfolio
45,000
40,000 Debt Derivatives Total
SEK million 2025 2024 2025 2024 2025 2024
35,000
< 3 months 0 7,841 1,800 –4,047 1,800 3,794
30,000
3 months–1 year 11,991 10,684 –3,169 –2,553 8,822 8,131
25,000 1–5 years 26,585 36,994 –367 968 26,218 37,961
20,000 > 5 years 13,314 20,887 2,024 5,432 15,339 26,318
Total 51,890 76,405 288 –201 52,178 76,204
15,000
10,000
The portfolio includes loans and interest rate derivatives in order to steer the duration of borrowing. Negative amounts are explained by the
5,000 use of derivatives, such as interest rate swaps and interest rate forwards. The sum of derivatives is not equal to zero due to currency effects.
Figures are exclusive of loans from minority owners and associated companies, totalling SEK 7,343 million for 2025 (7,221). The average
0 financing rate as per 31 December 2025 was 3.97 percent (3.64 percent). All figures in nominal amounts.
Aaa Aa1 Aa2 Aa3 A1 A2 A3 Baa1 Baa2 Baa3 Other Ratings
2024 2025
Vattenfall Annual and Sustainability Report 2025 55
Risk management / Financial risks
Currency risk
Currency risk refers to the risk of negative impact from position in the debt portfolio with the currency com
changed exchange rates in the consolidated income position of the Group’s funds from operations (FFO).
statement and balance sheet. Vattenfall’s largest exposure is in EUR, totalling SEK
86,644 million (97,090). Of this amount, 24 percent
Risk response activities (23 percent) was hedged at year-end. For further
We have limited transaction exposure, since most information, see Note 37 to the consolidated accounts,
generation, distribution and sales of electricity take Specifications of equity.
place in the respective local markets. Sensitivity to A five percent change in exchange rates, for example,
currency movements is therefore relatively low. All would affect the Group’s equity by approximately SEK
transaction exposure that exceeds a nominal value 4.3 billion (4.7), where an appreciation of the currencies
equivalent to SEK 10 million is hedged immediately shown in the table in Note 37 to the consolidated
when it arises. The target for hedging translation accounts, Specifications of equity, would result in
exposure is to, over time, match the currency com a positive change in equity.
Debt portfolio, by currency, in SEK million
Debt Derivatives Total
Original currency 2025 2024 2025 2024 2025 2024
DKK 0 4,028 — — 0 4,028
EUR 28,704 39,166 4,628 4,900 33,331 44,066
GBP 15,502 19,535 –4,651 –5,182 10,851 14,353
JPY 1,176 1,405 –1,176 –1,405 0 0
SEK 6,509 12,271 1,486 1,486 7,995 13,757
Total 51,890 76,405 288 –201 52,178 76,204
The table shows currency risk in the debt portfolio and the currencies that Vattenfall is exposed to. Figures above are exclusive of
loans from minority owners and associated companies, totalling SEK 7,343 million (7,221). All figures in nominal amounts.
Vattenfall Annual and Sustainability Report 2025 56
Corporate
governance
report
Corporate governance report ............................. 58
Board of Directors .......................................................... 67
Executive Group Management ........................... 69
Proposal for the
Annual General Meeting ............................................. 71
Vattenfall Annual and Sustainability Report 2025 57
Corporate governance report
Corporate governance Governance and reporting structure
report Shareholder via the AGM Auditor
Remuneration Committee Board of Directors Audit Committee
This report includes information on corporate govern- eneral Meeting (AGM), the Board of Directors and the
G President and CEO
Internal Audit
ance during the 2025 financial year, as prescribed by President. The AGM elects the Board of Directors, which EGM
law and the Swedish Corporate Governance Code. in turn appoints the President, who is responsible for
Overall issues on corporate governance are handled the day-to-day administration of the company in accord-
in this report, while specific risk issues are handled in ance with the Board’s guidelines and instructions. Business Areas and Staff Functions according to organisational structure
the Risk management section and sustainability related
risks and impacts in the sustainability report. The Cor- Application of the Code
porate governance report has been reviewed accord- Vattenfall adheres to the Swedish Corporate Govern-
ing to RevU 16 by the company’s external auditor. ance Code (“the Code”, available in Swedish and English
During 2025, work at Board and CEO level included at www.bolagsstyrning.se). Since Vattenfall is wholly Important external and internal rules and regulations for Vattenfall
continued decision-making in line with Vattenfall’s strat- owned by the Swedish state, there is no need to pro- External rules and regulations • The European Sustainability Reporting Standards
egy. Among others, further and material decisions on tect minority shareholders. For this reason, the provi- • Swedish and foreign legal rules, particularly the (ESRS) and the UN Global Compact as well as r eporting
planning for new nuclear power in Sweden have been sions on shareholders’ right of initiative prior to general Swedish Companies Act and the Swedish Annual according to Green Bond Principles and S
cience
Accounts Act Based Targets.
made and a Group-wide program aiming at increased meetings (the Code, point 1.1) and the reporting on
• The Swedish state’s ownership policy 2025
internal efficiency has been performed. Further invest- board members’ independence in relation to the com- Internal rules
• The Swedish Corporate Governance Code (“the Code”)
ments in new wind power farms have been decided. pany’s major shareholder (point 4.5) do not apply. • Stock exchange rules for fixed-income instruments • The Articles of Association
A well-functioning corporate governance – with an For the same reason, Vattenfall has no nomination registered on Nasdaq Stockholm • The Board’s and committees’ Rules of Procedure,
effective organisational structure, internal control and committee (the Code, chapter 2). The nomination pro- • International Financial Reporting Standards (IFRS) and including the CEO instruction and the instruction
other accounting rules for reporting to the Board
risk management – helps Vattenfall to manage its busi- cess for the Board and auditors is conducted in accord- • The Vattenfall Management System (VMS), including
ness towards set targets and in accordance with ance with the Swedish state’s ownership policy and is the Code of Conduct and Integrity, and other internal
Vattenfall’s strategy and principles. described below. Thus, the references to the nomina- governance documents.
tion committee in points 1.3, 1.4, 4.6, 9.1, 10.2 and 10.3
Vattenfall’s corporate governance model are not applicable either. However, information on the
The parent company of the Vattenfall Group, Vattenfall nomination of board members for new election or
AB, is a Swedish public limited liability company with re-election is posted on the company’s website in
registered office in Solna. Vattenfall AB is thereby accordance with point 2.6. Election of an AGM Chair Vattenfall AB’s Articles of Association and continuously updated information about corporate governance at Vattenfall are available on Vattenfall’s
subject to the provisions of the Swedish Companies is done at the AGM in accordance with the stipulations website, group.vattenfall.com (original Swedish documents are available on group.vattenfall.com/se). The website is also a source for previous corporate
governance reports and documentation from the most recent general meetings, links to the Swedish state’s ownership policy, the Swedish Code of
Act. The main decision-making bodies are the Annual of the Swedish Companies Act. C orporate Governance as well as the Vattenfall Code of Conduct and Integrity and other internal policies.
Vattenfall Annual and Sustainability Report 2025 58
Corporate governance report
Shareholder and general meetings to be among the leaders in developing environmentally The enterprise must manage its relationships with The achievement of the financial targets is described in
sustainable energy production. partners, customers and suppliers in a responsible the Annual and Sustainability Report on pages 11–13.
Vattenfall AB is wholly owned by the Swedish state. The The Swedish state’s ownership policy stipulate that manner, and act responsibly in the taxation area and
right of the state, as a shareholder, to make decisions state-owned companies shall act on a commercial in connection with lobbying activities. Annual General Meeting 2025
about Vattenfall’s affairs is exercised at the Annual basis, have good corporate governance, generate Vattenfall held its 2025 AGM on 28 April. The compa-
General Meeting (AGM) and other general meetings. sustainable value creation, have long-term ambitions With regard to security awareness and the contribution ny’s owner, the Swedish state, participated at the AGM
Through a general meeting resolution on the content and good transitioning capacity, be characterised by to the country’s preparedness for crisis and war, it is through its owner representative. The general public
of the Articles of Association, the shareholder makes security awareness and contribute to Sweden’s prepar- stated, among other things, that the enterprise must, had the opportunity to participate on-site as well as
decisions on the company’s operations. The application edness for crisis and war, pay reasonable and well- on market terms, contribute in an efficient manner to via webcast. Members of Parliament were given the
of the Swedish state’s ownership policy is decided at considered remuneration as well as act transparently strengthening Sweden’s total defence. The enterprise opportunity to ask questions during the AGM, and an
the general meeting. in relation to their stakeholders. In order to promote must work to protect its assets and operations in open Q&A session was arranged after the meeting, in
long-term sustainable value creation in state-owned peacetime crises as in states of heightened alert and, accordance with the Swedish state’s ownership policy.
Steering and targets from the Shareholder enterprises, sustainable business is integrated into the in the extreme, war. The enterprise must carry on sys- Per Lindberg left the Board while the other Board mem-
Based on a decision by Swedish Parliament in 2010, business operations. Among the issues of particular tematic and risk-based security work. Assets that merit bers were re-elected. In addition to the recurring deci-
Vattenfall AB’s Articles of Association stipulate that the importance for sustainable value creation, three areas protection must be identified and protected. The enter- sions by the AGM, decisions were made on new financial
objective for the company’s activities is to generate a are highlighted: prise should furthermore, in consultation with the targets and a new ownership policy.
market rate of return by, directly or indirectly through • Environmental issues: The enterprise should act in responsible government agencies, identify the essen- The 2026 AGM will be held on 28 April in Solna,
subsidiaries and associated companies, operating a an exemplary manner in their industry as regards tial service parts of its operations and analyse the need Sweden.
commercial energy business that enables the company environmental and climate matters and work towards to maintain these during disrupted conditions, peace-
the achievement of the national environmental and time crises, a state of heightened alert or, in the Board of Directors
climate objectives adopted by the Swedish Parlia- extreme, war. Finally, the enterprise must ensure that it
ment and in the Paris Agreement. For biodiversity, has good business continuity planning and maintain The Board’s duties
the Kunming-Montréal Global Biodiversity Framework this planning. The Board is the company’s highest administrative
Duties of the Annual General M
eeting (GBF) provides guidance. body. Its fundamental duties are laid out in the Swedish
• Social issues: The enterprise must act in an exem- The financial targets have been decided at the Annual Companies Act and the Code. Further duties are laid out
• Elect the Board of Directors, the Chairman
of the Board and as well as the auditors, plary manner by providing a healthy and safe work General Meeting on 28 April 2025: in its Rules of Procedure and the instructions adopted
and decide on their fees environment, good and decent working conditions, • Return on capital employed (ROCE) ≥8 percent, as each year by the Board. The Rules of Procedure and
• Adopt the income statement and balance and by respecting human rights, including the rights measured by underlying EBIT instructions regulate such matters as reporting to the
sheet for Vattenfall AB and the Vattenfall Group
• Decide on distribution of the company’s profit
of the child. The enterprise must be a role model in • Funds from operations/adjusted net debt (FFO/AND) Board, allocation of duties between the Board, the Presi-
• Grant discharge from liability for the Board its work with equal opportunities and gender equality ≥25 percent, where FFO is excluding dividend attrib- dent and the Board’s committees, the Chairman’s
members and the President and work for an inclusive corporate culture. The utable to non-controlling interests and margin calls duties, the form and content of board meetings, and the
• Approve the remuneration report
enterprise must further act as an exemplary procure- are excluded from AND evaluation of the work of the Board and the President.
• Decide on guidelines for remuneration
of s enior executives ment partner in order to promote sustainable devel- • Dividend policy 40–70 percent of profit for the year, The Board shall, according to its Rules of Procedure,
• Decide on other matters of business opment and actively combat corruption and work- adjusted for unrealised fair value changes and return set the overarching targets for Vattenfall’s operations,
p rescribed by law or the company’s Articles related crime. from the Nuclear Waste Fund. Furthermore, forward- decide on Vattenfall’s strategy for achieving those tar-
of Association.
• Corporate social responsibility: The enterprise looking capital structure and investment needs are to gets, and ensure that suitable systems are in place for
must practise good business ethics, with active and be taken into account so that the dividend pay-out monitoring and controlling Vattenfall’s operations, risks
systematic risk-based regulatory compliance work. range is used more actively. and financial position in respect of the set targets. The
Vattenfall Annual and Sustainability Report 2025 59
Corporate governance report
Board is responsible for approving major investments, Vattenfall has formulated a strategy to reach its goal ustainability-related expertise is available via a Group
S request a special strategic reconciliation for the
acquisitions and divestments and for, annually or fol- of fossil freedom. Decisions and investments made are common sustainability department. wner’s written standpoint.
o
lowing significant change, adopting central policies and steered by this. The annual planning for the Board and The Board’s duties pertain to Vattenfall AB as well as
instructions. Part of this is to define appropriate guide- its committees includes recurring items in several of the Vattenfall Group. Vattenfall’s General Counsel Board meetings
lines to govern the company’s conduct in society, with the areas for sustainable business which are identified serves as secretary to the Board of Directors. The Board shall hold eight to twelve regular board
the aim of ensuring its long-term value creation capabil- in the Swedish state ownership policy. These areas are The Chairman is responsible for – among other things meetings every year. In addition to the regular meet-
ity. The Board shall, according to its Rules of Procedure, furthermore included as an integral part of the handling – ensuring that the board members receive relevant ings, the Board is convened when necessary. The
also identify how sustainability issues impact the com- of concrete board matters and are also handled by the information, has a duty to inform the owner and is agenda of every regular meeting shall include the
pany’s risks and business opportunities and how it allo- Executive Group Management. Vattenfall’s strategic responsible for the contact with the owner, including following items of business:
cates issues to the CEO, among others concerning focus areas in themselves constitute sustainability communicating the owner’s views to the Board of • The Group’s business and market situation
stakeholder engagement. Also, the Board shall approve objectives and among others, sustainability aspects Directors. According to the Swedish state ownership • Quarterly financial report for the Group
certain important contracts, including contracts such as climate and environmental impact and policy, the Board shall, when the company is facing • Reports from board committees, when committee
between Vattenfall and the President and other senior human rights are included in the Board’s handling of far-reaching strategic changes in its operations, meetings have been held
executives. the strategy and in the business planning process. through its Chair, inform the owner in good time and • Matters that are not handled by the President in the
day-to-day administration
• Other matters of material importance for the Group.
In addition, certain recurrent items of business are
The Board’s yearly planning included on the agenda, in accordance with the yearly
The Board’s main items of business
planning in the Board’s Rules of Procedure. Investments
Business, investment and in 2025
financing plans, overview of approved by the Board are followed up by the Board
Report from the auditors, investments for final reposito- • Items according to the Rules of Procedure one year after their commercial operation date. Strategy
nomination of auditor, annual ries in the nuclear business, • Strategic and financial targets
issues are discussed in depth at an annual board
accounts and status for the the auditor's interim review, • Acquisitions and divestments
sustainability reporting, First quarter interim report, Strategic direction and guidelines for remuneration of • Items on Swedish new nuclear business seminar where the Executive Group Management also
dividend, ongoing disputes of risk mandate and risk policy, targets, R&D strategy, senior executives, Remunera- and decommissioning of shut-down reactors participates. The Board shall on an ongoing basis be
major importance, integrity annual report from Corpo- strategic personnel tion principles in Vattenfall, • Partnership and investments with regard
informed on circumstances of importance for the best
reports, remuneration report, rate Security & Resilience, issues, diversity and Internal Audit's budget, plan to new wind power farms
• Strategic assessment of the district heating possible insight in the business and which facilitate an
issues regarding human rights updated hedge objectives, equal opportunity plan and statement of independ-
and UK Modern Slavery Act and statutory board meeting and nuclear power and ence, tax policy, evaluation operations overall assessment of Vattenfall’s situation.
statement following the AGM dam safety of the Board and President • Group wide program for improving internal The Board met ten times in 2025, including the statu-
efficiency in Vattenfall’s business
• Sustainability items, focusing on fulfilling
tory meeting. The board members’ attendance is found
requirements due to new legislation based on pages 67–68. The Board held a meeting at one of
on the EU directive CSRD the Group’s operational units. This meeting was held in
• Security situation and security issues.
London and was combined with study visits to improve
knowledge on artificial intelligence.
Annual and Sustainability Brand strategy, strategic Half-year interim report, Nine-month interim report,
Report, AGM notice sustainability issues, ongoing disputes of major report from Corporate
succession planning for importance, information on Security & Resilience Appointment of the Board
senior executives hedge objectives and For companies that are wholly owned by the Swedish
hedge strategy state, uniform and common principles for a structured
nomination process apply. These principles are set
Vattenfall Annual and Sustainability Report 2025 60
Corporate governance report
forth in the Swedish state’s ownership policy and super- The Board’s composition control and follow-up, and the roles and composition of sentative to each committee. Information on the com-
sede the Code’s rules on drafting work for decisions on Vattenfall’s Articles of Association stipulate that the the board. The President, the CFO and the Secretary to mittees’ composition and attendance is provided on
the nomination of board members and auditors. Board of Directors shall have, in addition to the the Board also answered the questionnaire. The evalua- pages 67–68.
The board nomination process takes place in the employee representatives, a minimum of five and a tion was reported and discussed at the Board meeting The committees report their work to the Board at the
Swedish Government Offices and is coordinated by maximum of ten members without deputies. The direc- in February 2026. next regular board meeting, whereby the committee
the Ministry of Finance. The expertise required is ana- tors are elected annually by the Annual General Meet- chair presents a report accompanied by minutes from
lysed based on the enterprise’s operations, stage of ing, which also elects the Chairman of the Board. Board committees the committee meetings. Except for a few matters han-
development and circumstances generally, and board In 2025, no member of the Executive Group Manage- dled by the Audit Committee, the committees are only
evaluations performed. Once this process has been ment (EGM) was a director on the Board and thus 100 The Board has established two committees and Rules drafting bodies and make recommendations to the
completed, the nominations are publicly announced percent of the directors were non-executives. This is in of Procedure for these. At the statutory board meeting, Board. The Board’s legal responsibility under company
in accordance with the Code. Vattenfall provides orien- line with the Swedish state’s ownership policy. All Board the Board appointed a number of directors elected by law for the company’s organisation and administration
tation training for new directors who are elected by members elected by the AGM are further independent a general meeting for each committee, of whom one of the company’s affairs is not constrained by the com-
the AGM. of the company and its executive management. serves as committee chair. The employee representa- mittees’ work.
The Swedish state’s ownership policy, which is the By law, the unions are entitled to appoint three tives of the Board have the right to appoint one repre-
diversity policy applied with regard to the Board, stipu- board members plus three deputies, and they exer-
lates that the board must have a composition that is cised this right.
broad and well-rounded in terms of the expertise, expe- Biographical information about the board members is
rience and background of the directors elected by the provided on pages 67–68.
AGM. The target for the portfolio of state-owned enter-
The Audit Committee’s most The Remuneration Committee’s
prises is a minimum of 40 percent board representa- Guidelines for directors’ fees
important duties are: most important duties are:
tion for both women and men. Directors’ fees for Board and committee work are set by
At the 2025 AGM, the owner’s representative pre- the owner at the AGM, in accordance with the Swedish • To oversee Vattenfall’s financial reporting, • To conduct drafting work for board decisions
including sustainability reporting on matters regarding remuneration principles,
sented a reasoned statement on the Board’s composi- state’s ownership policy. Information on directors’ fees
• With respect to financial and sustainability and on remuneration and other terms of
tion. In summary, the owner judged that the board in 2025 is provided in the Annual and Sustainability reporting, to monitor the effectiveness of employment for members of the Executive
members had relevant skills, experience and back- Report, Note 11 to the consolidated accounts, Number Vattenfall’s internal control, internal audit and Group Management and other senior
ground for the company’s operations, development of employees and personnel costs. risk management executives
• To stay informed about the audit of the annual • To monitor and evaluate application of
phase and conditions in general. The gender balance report and consolidated accounts and the the guidelines for remuneration of senior
on the Board did not achieve the government’s goal, Evaluation of the Board’s and the President’s work review of the sustainability report for Vattenfall executives, which the Annual General Meeting
meaning a minimum of 40 percent board representa- The Board annually evaluates the President and its own AB and the Group is required to make a decision on by law, as
• To review and monitor the auditor’s impartiality well as remuneration structures and levels of
tion for both women and men with regard to AGM- work as part of efforts to develop work forms and effec-
and independence remuneration in the company
elected directors. The Board as a whole, however, was tiveness. This evaluation is conducted under the direc- • To assist in the drafting of recommendations • To conduct drafting work for the Board’s
considered to have a versatility and breadth that tion of the Chairman and is reported to the Board and for decisions on the election of auditor by the d ecisions regarding overarching remuneration
Annual General Meeting principles, such as the general existence of,
reflected the requirements of the state’s ownership pol- the owner.
• To review and oversee the management of mar- amount and structure of variable remuneration
icy. The gender balance among the AGM elected board In 2025, an evaluation was conducted, with the help ket, liquidity and credit risks (for employees who are not senior executives).
members was 29 percent women and 71 percent men of an external consultant, with follow-up from the evalu- • To conduct an annual evaluation of the external
(previous year: 25 and 75 percent respectively). ation 2024. The evaluation used a questionnaire for the auditors’ work
• To assist prior to the Board’s resolution on
More detailed information on the board nomination Board as a whole, which each of the members and dep- employment and termination of employment
process is provided in the Swedish state’s ownership uties answered. The questions addressed in particular for the Head of Internal Audit.
policy, at www.regeringen.se. the board meetings, the strategic work, the work with
Vattenfall Annual and Sustainability Report 2025 61
Corporate governance report
Audit Committee Auditor The auditor’s fees are payable according to an erforms an independent risk analysis, which makes
p
The Audit Committee oversees Vattenfall’s financial approved invoice. The Group’s auditing costs are up part of the decision-making documentation.
reporting, including the sustainability report, and is The Swedish state’s ownership policy stipulates that the described in more detail in the Annual and Sustain The President follows up operations via quarterly
responsible for meeting with Vattenfall AB’s external board must submit a proposal for the election of audi- ability Report, in Note 41 to the consolidated accounts, Business Performance Meetings. At these meetings,
and internal auditors on a regular basis in order to stay tors and the auditors’ fees, for decision at the Annual Auditor’s fees, and in Note 31 to the parent company outcomes, forecasts, important events and challenges
informed about the planning, focus and scope of the General Meeting. The auditors are elected for a man- accounts, Auditor’s fees. – including the status of Vattenfall’s strategic targets
company’s audit. The Audit Committee is also responsi- date period of one year, in accordance with the main – are analysed with the management of each business
ble for discussing coordination of the external and rule in the Swedish Companies Act. Vattenfall’s Articles CEO and Group Management unit. Yearly deep-dives into sustainability topics – chal-
internal audit work and views of the company’s financial of Association stipulate that the company shall have lenges, progress and actions for coming year – are per-
risks. The committee prepares Internal Audit’s budget, one or two auditors with or without one or two deputy The President of Vattenfall AB, who is also Chief Execu- formed with the top management of each business
the Internal Audit Charter and the internal audit plan for auditors, or a chartered accounting firm as auditor. tive Officer (CEO) of the Vattenfall Group, is responsible area.
resolution by the Board. It has the right, on behalf of the The AGM 2025 elected the accounting firm Öhrlings for the day-to-day administration in accordance with Biographical information about the members of the
Board, to decide on other services than auditing and PricewaterhouseCoopers AB, forming part of the same the Swedish Companies Act. Anna Borg was the CEO in EGM is provided on pages 69–70.
review of sustainability reports that Vattenfall may pro- group as the previous accounting firm Pricewater- 2025. An account of the President’s remuneration is
cure from the Group’s auditors. houseCoopers AB, as auditor. The accounting firm provided in the Remuneration Report and in the Annual Internal Audit
The Audit Committee meets prior to Vattenfall’s pub- appointed Authorised Public Accountant Eva Carlsvi and Sustainability Report, Note 11 to the consolidated
lication of interim reports and when warranted by the as auditor-in-charge. accounts, Number of employees and personnel costs. Internal Audit is an independent and objective function
prevailing conditions. The CFO and head of Internal The auditor’s audit assignment includes a review of The CEO has set up internal bodies for governance of that evaluates, recommends and monitors improve-
Audit serve in a reporting role. The external auditors the annual report, the consolidated accounts, the cor- the Group and makes decisions independently or with ments to the effectiveness of Vattenfall’s risk manage-
attend all regular meetings and report on their obser porate governance report, the sustainability reporting the support of these bodies. The most important of ment, internal controls and governance processes
vations of the audit. and compliance with the guidelines for remuneration of these are the Executive Group Management (EGM) and throughout the Group. This also applies to compliance
senior executives. In addition, the auditor performs a the Vattenfall Risk Committee (VRC). The EGM focuses with Vattenfall’s governance documents, including the
Remuneration Committee review of the half-year interim report. The auditor has on the Group’s overall direction and addresses – within Code of Conduct and Integrity. The function is directly
The Remuneration Committee’s duties include serving access to minutes of board meetings and board com- the framework of the CEO’s mandate from the Board of subordinate to the Board of Directors and Audit Com-
as a drafting body to ensure implementation and com- mittee meetings. The Audit Committee has approved Directors – matters of importance for the Group. In the mittee. It performs its work risk-based and in accord-
pliance with the guidelines, approved by the Annual guidelines for how procurement of other services than EGM, the Head of Strategic Development covers overall ance with an established internal audit plan.
General Meeting, for remuneration of senior executives. auditing and review of sustainability reports shall take sustainability issues and the Group’s Head of Sustain Internal Audit’s budget, the Internal Audit Charter,
Where applicable, it conducts drafting work for any place from the auditor. ability reports to this person. The VRC focuses on deci- the internal audit plan as well as the employment and
special reasons that may exist in an individual case to At the 2025 AGM, the auditor reported on the audit sions pertaining to risk mandates and credit limits, termination of employment for the Head of Internal
deviate from the guidelines. It also conducts work for work in 2024 and on its review of compliance with the among other things, and exercises oversight of the risk Audit are drafted by the Audit Committee and decided
the Board’s remuneration report and, ahead of the guidelines for remuneration of senior executives. The management framework. on by the Board of Directors. The Head of Internal Audit
AGM, monitoring and following up the auditors’ review. auditor reported on its review of the year-end accounts Both bodies convene monthly and also conduct reports administratively to the President and informs
Succession planning for senior executives is annually for 2025 to the entire Board at the board meeting in preparatory drafting work on matters that are to be the management teams of the business units and other
on the Committee agenda. The President serves in a February 2026 (without the presence of any person decided by the Board of Directors. Ahead of decisions units about audit activities that have been performed.
reporting role on the Remuneration Committee. from the Executive Group Management), and also made by the President in the EGM or VRC on certain The Head of Internal Audit also submits a report to the
reported on its observations at the board meeting in major investments and transactions, the risk unit Audit Committee at each regular Committee meeting.
December 2025.
Vattenfall Annual and Sustainability Report 2025 62
Corporate governance report
Internal governance Governing business ethics The three lines model develop, align and implement the rules and require-
Vattenfall’s Code of Conduct and Integrity builds upon Vattenfall applies the “three lines model”, for manage- ments decided by the Board, the President and the
Principles and strategy the four Vattenfall principles – Open, Active, Positive ment and control of risks in general, based on the Group Staff Functions. It covers the group steering,
Vattenfall’s purpose is to enable the fossil freedom that and Safe – and contains a number of rules built on the framework of the Institute of Internal Auditors. while local management systems cover specific busi-
drives society forward, making it possible to move, “think first” approach. It also includes references to the 1. The first line is primarily represented by units that ness and functional steering within the framework of
make and live fossil free, as a profitable energy busi- Vattenfall Management System (VMS), which elabo- provide products or services to the organisation’s the VMS. The VMS consists of binding policies and
ness. The strategy in brief means that: rates on these rules. The Code of Conduct and Integrity customers, such as business units and certain Staff instructions. It is an integrated management system
• Vattenfall has set out to be a leader in the energy has been communicated throughout the Group and is Functions. It is responsible for executing the strategy that applies for the entire Vattenfall Group and units
transition, as a profitable business available on the intranet in several language versions, and managing risks. must adhere to the VMS, with the limitations that may
• Sustainability is at the core of Vattenfall’s strategy, corresponding to the countries where Vattenfall has 2. The second line provides control, expertise, support, arise from legal requirements.
as shown by our 2030 and 2040 climate targets business operations. Information about the Code of monitoring and challenge on risk-related matters. Vattenfall’s policies lay out the company’s direction in
validated by Science Based Targets initiative (SBTi) Conduct and Integrity is provided in connection with It consists of Staff Functions governing the organisa- the areas of
• Fossil-free electricity generation is the foundation new hiring and training. An e-learning programme on tion, among them Health & Safety, Environment, • Code of Conduct and Integrity, as described above
for value creation application of the Code of Conduct and Integrity is Integrity, Security, Group Internal Financial Control • Remuneration, outlining general principles of remu-
• We have the business model of an integrated utility, mandatory for all Vattenfall employees. and Risk Management. neration and benefits in Vattenfall, in line with the
as being active in both generation, flexibility, distribu- To ensure ethical and non-corrupt conduct through- 3. The third line is made up of internal audit, which guidelines decided by the Annual General Meeting
tion, sales, services and optimisation/trading ensures out the organisation, Vattenfall requires all employees oversees and evaluates the first and second lines • Dam safety
robustness and diversification and enables synergies. to act in accordance with the company’s ethical guide- (as described above). • Nuclear safety
lines, which are set forth in the Code of Conduct and • Risk, see further pages 44–56 in the Annual and
In addition to this are the financial targets, decided on Integrity as well as in internal instructions. Vattenfall Vattenfall Management System Sustainability Report
by the general meeting and further described under believes that free competition plays a decisive role for The most important internal rules for governing • Sustainability, where governance is based on an
“Shareholder and general meetings” above. Group a market to function effectively and has zero tolerance Vattenfall are found in the Vattenfall Management overall policy. In addition, specific policies exist for
scorecards support by linking to financial, non-financial for bribery and corruption. An important step in ensur- System (VMS). The VMS is the group system to various sustainability areas:
and operational requirements, for instance with regard ing this is the recurrent training that is conducted
to CO2 emissions, availability and generation cost. within the Vattenfall Integrity Programme, which is
Reporting back to the Board is performed as part of described on page 125. Three lines model
the quarterly reporting. Other targets are connected to, Vattenfall’s employees and other stakeholders have
among others, security awareness and ability to meet the opportunity to report serious improprieties anony- Board of Directors
requirements in states of heightened alert. mously through a web-based whistleblowing channel.
External assurance provider
Vattenfall creates value for customers and share- Internal reports can also be made directly to any mem-
President and CEO / EGM
holder by pursuing sustainable business in attractive ber of Internal Audit or to the local Whistleblowing
External Audit
markets with favourable conditions for returns, and Coordinator.
where we can leverage our competitive advantages. Read more about reported incidents in the Annual Risk organisation and
Business units and
Vattenfall’s strategy is well aligned with the UN’s and Sustainability Report on page 125. Ongoing legal c ertain staff functions
other control functions Internal Audit
in staff functions
Agenda 2030 Sustainable Development Goals and processes are described in Note 39 to the consoli-
will drive Vattenfall to make an important contribution dated accounts, Contingent liabilities. Examples of sus-
to the global sustainable development agenda. tainability initiatives and principles that Vattenfall has First line Second line Third line
Execute strategy Independent risk Independent and objective
aligned itself with or supports are listed on page 75.
incl. management of risk and c
ompliance control assurance and advice
Vattenfall Annual and Sustainability Report 2025 63
Corporate governance report
• Environment Vattenfall’s organisation able for the risk management framework (as described 1. Ownership: The line organisation, which is respon
• Health and safety The organisational structure comprises five business on page 45) and is responsible for ensuring risk govern- sible for compliance with laws and regulations within
• Human rights areas: Customers & Solutions, Generation, Markets, ance and risk control. The CRO provides information the unit.
• Code of Conduct for Suppliers and Partners Wind and Distribution. The business areas are organ- on a regular basis to the Vattenfall Risk Committee and 2. Control and advice: The integrity organisation,
• Taxes. ised in four operating segments, where Generation and to the Executive Group Management as well as to the with reporting to the Group’s General Counsel.
Markets make up a single operating segment (Power Board and the Board’s Audit Committee. 3. Oversight and evaluation: The Internal Audit unit.
The valid codes of conduct and sustainability policies Generation). The business areas, in turn, are divided
are published on group.vattenfall.com. The Board of into business units. Central staff functions support and Integrity organisation The Integrity organisation’s area of responsibility cov-
Vattenfall AB approves all policies except the policies direct the business activities. For further information The aim of integrity work at Vattenfall is to preserve the ers antitrust matters, antibribery and anti-corruption,
on dam safety and nuclear safety; however, within these see pages 30–43. integrity and to protect the reputation of Vattenfall. conflicts of interest, inside information, awareness of
areas, regular reporting is conducted to the Board. The company structure differs from the business Integrity work at Vattenfall is organised according to Vattenfall’s Code of Conduct and Integrity, and coordi-
The content of the policies is concretised in instruc- structure. Decisions are made in the business organisa- the three lines model: nation of Vattenfall’s whistleblowing function. Within its
tions within the VMS, such as in special instructions for tion, where each business area and staff function has
matters concerning competition law and for countering its own management team. Governance is conducted
bribery and corruption. Instructions in the VMS also financially, non-financially (such as through staff func-
include concretisations of the content of the Board’s tions), and operationally. Unit scorecards and the VMS
Rules of Procedure, such as allocation of responsibili- are the most important governance tools. The business Organisation
ties and risk mandates. performance steering model consists of an annual Board of Directors
The instructions shall be implemented in the relevant business planning process and monthly reporting and
parts of the organisation and be adhered to by the follow-up of forecasts and actual results. The group
President and CEO
defined target groups and units. Special routines are in strategic direction is reviewed and updated annually
place to ensure adherence to the management system in the strategy development process.
also by subsidiaries. All policies and instructions are In accordance with legislation both within the EU and Legal & Corporate Security
CFO functions
& Resilience
accessible for employees on the intranet. E-learning in the UK, operations of the electricity distribution net-
exists in several areas connected to VMS documents. work shall be separated from sales and generation
Implementation and adherence are regularly followed of electricity (unbundling). For Vattenfall, this entails, Strategic Development People & Culture
up, and identified issues are addressed. All policies and among other things, that electricity distribution opera-
instructions are regularly reviewed and updated. tions are conducted in separate subsidiaries that have
Communications
Vattenfall’s environmental management system is the actual decision-making rights in respect of the
integrated in the VMS. At year-end 2025, nearly 100 company’s day-to-day operations, as well as for deci-
percent of Vattenfall’s production and distribution port- sions needed to ensure operation, maintenance and
folios had certified environmental management sys- development of the network. The Head of Business Operating Segment
Operating Segment Operating Segment Operating Segment
tems in accordance with ISO 14001. In addition, all of Customers
Area Distribution is not member of any decision-making Power Generation Wind Distribution1
& Solutions
the Group’s business units are certified for occupa- forums outside of the business area.
tional health and safety according to ISO 45001. A
Business Area
number of business units have certificates on energy Risk management organisation Business Area Business Area Business Area Business Area
Customers and
Generation Markets Wind Distribution
management in accordance with ISO 50001. The Risk management organisation is headed by the Solutions
Chief Risk Officer (CRO) and is responsible for monitor-
ing and control of risks in general. The CRO is account- 1. Vattenfall’s electricity distribution operations are unbundled from other operations, in accordance with Swedish and UK legislation.
Vattenfall Annual and Sustainability Report 2025 64
Corporate governance report
scope, the Integrity organisation supports Vattenfall in Internal control The Board’s audit committee monitors the status of assignment of Group internal authority concerning
identifying, mitigating, managing and monitoring the internal control on behalf of the Board and makes recom- invoicing, among other things. The VMS also stipulates
risk of non-compliance with laws, regulations, rules, The Vattenfall Group appreciates high quality in finan- mendations and proposals to ensure the reliability of the which decision-making, oversight and advisory bodies
standards and codes of conduct, relevant to its activi- cial and non-financial reporting in achieving a trusting reporting. The committee also informs the Board about exist within the Group, on top of those required by law.
ties. Work is conducted in accordance with an annual relation with key stakeholders. This section describes the results of the audit and about the ways in which the As concerns internal controls over financial reporting,
plan and regular follow-ups are performed. The annual the most essential elements in Vattenfall’s system of audit contributed to the reliability of the reporting and Vattenfall has an internal financial control (IFC) process,
integrity work is summarised in an integrity report to internal control and risk management in conjunction about which function the committee has had. organised in Group Finance. Its overall purpose is to
the Board. with financial and non-financial reporting, as prescribed The VMS (described on page 63) contains steering ensure that the Vattenfall Group has internal controls in
Current integrity issues in 2025 are described in by the Swedish Annual Accounts Act and the Code. rules for all identified entity level controls, including place which provide reasonable assurance that the risk
more detail in the sustainability statement on pages Vattenfall’s framework for this control is based on rec- roles and responsibilities, authority and risk mandates, of material misstatements in the Group financial report-
124 and 125. ommendations developed by the Committee of Spon- decision-making processes, risk management, internal ing is mitigated. Vattenfall has introduced formal local
soring Organizations of the Treadway Commission control, as well as ethics and integrity issues. The VMS control frameworks for key business processes in all
Guidelines for remuneration (COSO). Based on this framework, internal control is lays out the grandparent principle and four eyes prin business areas, that are assessed at local level. IFC
of senior executives defined as “a process, effected by an entity’s board ciple for decision-making. An IT solution is in place for coordinators are responsible for the local activities.
of directors, management, and other personnel,
The 2025 Annual General Meeting adopted guidelines designed to provide reasonable assurance regarding
for remuneration of senior executives. These guidelines the achievement of objectives relating to operations,
are based on the provisions of the Swedish State’s reporting, and compliance”. Vattenfall’s overall risks
The Internal Financial Control (IFC) process valid 2025
ownership policy (www.regeringen.se). Through use of and risk management are further described in the
the International Position Evaluation model, managers Annual and Sustainability Report, pages 44–56.
with positions of IPE 68 and higher, are to be consid-
1. 2. 3. 4.
ered as senior executives. In line with the Swedish Control environment
Review & Update Review & Update Perform & Improve Monitor & Report
State’s ownership policy, the guidelines state that vari The control environment is based on the delegation of Expected Controls Actual Controls Actual performance Prepare monitoring
able remuneration must not be paid to senior execu- authority between the Board and the President, which Risk assessment, scoping, Conduct location training, of controls, monitoring approach, execute
tives. The guidelines are published on Vattenfall’s web is set forth in the Board’s Rules of Procedure, along with control design, monitoring design and implement of control performance and a ssessment, reporting
approach and training plan actual controls/procedures, continuous improvements and remediation activities
page group.vattenfall.com/se. the reporting requirements set by the Board. The Board support projects
Actions with respect to agreements with senior exec- has also adopted Vattenfall’s Code of Conduct and
utives were during 2025 continuously reported to the Integrity, which lays out the overarching rules govern-
Remuneration Committee and the Board, which also ing conduct for all employees.
The Review & Update In the Review & Update In the Perform & Improve The Monitor & Report phase
decided on the entering into such agreements. Inde- The Board of Directors has ultimate responsibility for Expected Controls phase Actual Controls phase, phase, actual controls and for the internal c
ontrol
pendent external remuneration consultants provided internal control, according to the Swedish Companies includes risk assessment, scope and objectives are activities are performed on framework includes pre
scoping of processes, communicated through local different levels in the organi- paring and communicating
benchmark data prior to decisions on remuneration. Act and the Code. In this context the Board shall ensure
designing expected controls, training and adopted. Local sation. It also includes manag- the m onitoring approach
Remuneration and compliance with the adopted guide- that the company’s organisation is structured in such deciding on monitoring control frameworks are ing deviations and ensuring and templates, executing,
lines are described in the Remuneration Report and in a way that the bookkeeping, treasury management and approach and designing maintained and mapped continuous improvements. for example self-assess-
the Annual and Sustainability Report, Note 11 to the the company’s financial conditions in general are con- a training plan. towards the group Expected ments, managem ent reviews
controls framework. etc, concluding the results
consolidated accounts, Number of employees and per- trolled in a satisfactory manner. in reports and follow up of
sonnel costs. The proposed guidelines ahead of the deficiencies and improve-
2026 AGM are shown on pages 71 and 72. ment needs.
Vattenfall Annual and Sustainability Report 2025 65
Corporate governance report
As concerns sustainability reporting, Vattenfall has For sustainability reporting, the ICSR project has per- at local level, who are responsible for monitoring and a continuous basis via the intranet as well as at meet-
initiated a project to formalise internal controls over formed a risk assessment, based on disclosure require- control of risks in the financial reporting. The Group ings with representatives of the Group’s business areas
sustainability reporting (ICSR). The project is led by ments from European Financial Reporting Advisory IFCO is responsible for the IFC process, which aims to and Staff Functions.
Group Finance but risk ownership lies within the sus- Group (EFRAG). Controls are prioritised based on strengthen the governance structure and effectiveness Reporting and follow-up reporting to the Board and
tainability organisation. The ultimate goal of ICSR is to assessed risk. The objective for 2025 has been to have of controls. Continuous improvements to the IFC pro- EGM are part of monitoring activities. Internal and exter-
have formal controls in place on both group and local formalised controls for the highest assessed reporting cess are ensured through an annual evaluation and nal audit and the Chief Risk Officer (CRO) also report
level. Vattenfall has a limited number of key controls at risks. In 2026, the project will continue formalising con- updating process. Information about ineffective controls on their observations to the Board’s audit committee.
group level as part of IFC since 2017. These controls will trols over sustainability reporting. is provided to internal and external audit. Each incidence Furthermore, the semi-annual status report from IFC
be integrated into the ICSR framework during 2026. of ineffectiveness is risk-assessed in consultation with is a basis for the assessment.
Control activities and monitoring the first line. Information about these risks is provided to Financial reporting includes interim reports, the
Risk assessment The Board monitors and addresses the Group’s finan- the risk organisation. An IFC status update is provided year-end report and the annual report. In addition to
The Board addresses the Group’s risk assessment and cial situation quarterly, with a starting point from the semi-annually to the Audit Committee. The Vattenfall these reports, financial information is provided to the
risk management process for the financial reporting at financial report submitted by the President and the framework for internal financial control includes pro- Group’s external stakeholders via press releases and
an overarching level. The Board’s audit committee con- Chief Financial Officer (CFO). cesses for assessments, monitoring, reporting and Vattenfall’s websites, in accordance with the Swedish
ducts evaluation and monitoring of risks and quality in The Audit Committee conducts the Board’s monitor- improvement of control activities in order to prevent, Securities Market Act, among other things. Presenta-
financial reporting and other enterprise risks. The Audit ing of the effectiveness of internal control and regularly discover and correct material misstatements in the tions and conference calls for financial analysts, inves-
Committee maintains regular contact with the Group’s receives status reports on the Group’s internal control financial reporting. Confirmation that internal and exter- tors and the media are held as a rule on the same day
internal and external audit functions to gather input to over financial and non-financial reporting. A financial nal regulations have been complied with is obtained via that the interim report or the year-end-report is pub-
continuous risk assessments. report is presented quarterly at regular Audit Commit- signed so-called internal representation letters. lished.
A continuous Enterprise Risk Management (ERM) pro- tee meetings. Tax issues are reported and followed For the internal controls over sustainability reporting,
cess makes it possible to quantify and compare finan- up on a regular basis. The Audit Committee, in turn, there has not been any evaluation and updating pro-
cial risks. The risk department reports the findings in reports to the Board on its most important observa- cess yet, since 2025 was the first year of formalising
the ERM process to the Executive Group Management, tions and recommendations. The timing and forms of ICSR controls.
to the Vattenfall Risk Committee and ultimately to the this reporting are set in the Board’s and Audit Commit-
Audit Committee and the Board. tee’s respective Rules of Procedure. Information and communication
For the financial reporting, the IFC process serves as The Executive Group Management holds regular The Group’s steering documents are accessible via
the framework for internal control that identifies and follow-up meetings with the heads of the business Vattenfall’s intranet. The forms for managing internal
defines risks for material misstatements in the Group areas and Staff Functions regarding the financial out- and external communication are documented in a VMS
reporting. These are overseen by the CFO function come. Operations are followed up on a quarterly basis instruction which aims to ensure that Vattenfall is in
through an annual assessment of the effectiveness of via Business Performance Meetings. compliance with legal as well as stock exchange rules,
financial controls for units in scope of IFC. The scope is Internally, Vattenfall applies the “three lines model” the Swedish state’s ownership policy (including prin
based on a materiality and risk analysis. The CFO func- (described on page 63). ciples for external reporting), and other obligations.
tion is also responsible for performing regular analyses For internal control over financial reporting, the sec- Accounting and reporting principles are laid out in a
of risks related to financial reporting and for updating ond line in this context includes the Group Internal joint manual for the entire Group. Updates and changes
this framework. Financial Control Officer (IFCO), and IFC coordinators in these policies and principles are communicated on
Vattenfall Annual and Sustainability Report 2025 66
Corporate governance report / Board of Directors
Board of Directors
Mats Granryd (1962) Pär Ekeroth (1974) Ingemar Engkvist (1957) Christian Levin (1967) Nina Linander (1959)
Chairman of the Board Board member Board member Board member Board member
Education Mechanical M.Sc. Education M.Sc. Business and Education Ph.D Nuclear Chemistry with Education B.Sc. B usiness and Administra- Education International Baccalaureate,
Other assignments Board member of Economics. focus on Nuclear Waste Management. tion and a M .Sc. in Mechanical United World Colleges of the Atlantic,
Telenor AB (2025–). Board member of Current position Investment Director/ Current position Self-employed Engineering. Wales, UK, M.Sc. Business and
Ratos AB (2024–) and Board member Senior Advisor, Ministry of Finance. E xecutive Advisor. Current position President and CEO at Economics, Stockholm and MBA,
of Business Sweden (2024–). Other assignments Board member of Other assignments Board member of Scania, CEO at TRATON SE. IMEDE, Switzerland.
Previous positions Chairman of the SJ AB. ISEC Monitoring Systems AB. Other assignments Member of the Board Other assignments Board member of
board COOR (2017–2025), Director Previous positions Senior Manager Previous positions Chief Executive of Directors Scania CV AB, Scania Growth Swedavia, Suominen and Asker
General GSMA (2016–2025), member of PwC Corporate Finance. Officer, World Association of Nuclear Capital I & II AB, Chairman of the Super Healthcare Group.
the UN Broadband Commission (2017– Elected 2023 Operators, London (2020–2022), Board visory Board MAN Truck & Bus SE and Previous positions Former founder
2025), member of the board Swedbank Committee assignment Member of member of World Association of Nuclear TRATON AB. Board member of Navistar and partner Stanton Chase International
(2017–2020), member of the board the Audit Committee. Operators (2020–2022), Director, World International Corporation, Volkswagen AB (2006–2012), Head of Finance AB
ENVAC (2013–2017), Group CEO Tele2 Board meeting attendance 10/10 Association of Nuclear Operators, Paris Truck and Bus Ltda, and Association of Electrolux (publ) (2001–2004), various
(2010–2015), positions within Ericsson Committee attendance 8/8 Centre (2016–2019), Chief Executive Swedish Engineering Industries (until leadership positions within Vattenfall AB
(1995–2010). Officer, E.ON Kärnkraft Sverige (2010– May 8). Chairperson of European Auto (1994–2001), work within Corporate
Elected 2020 1016), Chairman of the Board of Directors, mobile Manufacturers’ Association Finance at investment banks in London
Committee assignment Member of the OKG AB (2010–2016), Board member, (ACEA) Commercial Vehicle Board. (1988–1993).
Remuneration Committee. Ringhals AB (2010–2016), Board member, Previous positions Chief Operating Elected 2024
Board meeting attendance 10/10 Forsmark Kraftgrupp AB (2008–2016), Officer TRATON SE (2019–2021), Committee assignment Member of the
Committee attendance 3/3 Board member, Svensk Kärnbränsle E xecutive Vice President, Sales & Audit Committee.
hantering AB (2008–2016). Marketing Scania CV AB (2016–2018), Board meeting attendance 10/10
Elected 2023 Executive Vice President, Commercial Committee attendance 8/8
Committee assignment Member of the Operations Scania CV AB (2005–2016),
Remuneration Committee. Managing Director Italscania S.p.A
Board meeting attendance 10/10 (2006–2010).
Committee attendance 3/3 Elected 2024
Committee assignment Member of the
Remuneration Committee.
Board meeting attendance 10/10
Committee attendance 1/1
Vattenfall Annual and Sustainability Report 2025 67
Corporate governance report / Board of Directors
Board of Directors, cont. Deputy employee
representatives
Carola Puusteli (1965) Fredrik Rystedt (1963) Robert Lönnqvist (1979) Rolf Ohlsson (1961) Jeanette Regin (1965) Anders Bohlin (1965)
Board member Board member Employee representative Employee representative Employee representative Employee representative (deputy)
Education International Business School. Education M.Sc. Business and Education 3-year upper secondary Education Mechanical M.Sc. Education Secondary school diploma Education Energy Engineer
Current position Certified Independent Economics. degree in electrical installation. Further Current position Employee representa- and two-year education in healthcare. Current position Research Engineer
Board Professional. Current position Executive Vice education in project management, tive for Akademikerna. Vattenfall Current position Employee representa- at Strategic Development, Vattenfall AB.
Other assignments Board member of President and CFO of Essity Aktiebolag labour law and health & safety. employee since 1998, currently as full tive for Unionen. Responsible for Sales Other assignments Member of the
HALTON (Finland), Carbo Culture (Finland) (publ). Current position Employee representa- time representative for Akademikerna Heat at Gotlands Energi AB. European Works Council. Vice Chairman,
and Infrasonik (Sweden). Other assignments No other tive for SEKO Facket för Service och at Forsmarks Kraftgrupp AB. Elected 2011 Unionen Vattenfall. Group Chairman for
Previous positions Schneider–Electric assignments. Kommunikation. Vattenfall employee Other assignments Employee represent- Board meeting attendance 10/10 Unionen Vattenfall.
(2006–2024), latest position Vice Previous positions Chief Financial Officer, since 2007, currently as Project Manager ative on Forsmarks Kraftgrupp AB’s board. Elected 2019
President Strategy & Technology (Power Country Senior Executive, Nordea at Vattenfall Services Nordic AB. Chairman of Akademikerrådet i Vattenfall. Board meeting attendance 10/10
& Grid segment), COTS Sarl Founder & Sweden (2008–2012). Chief Financial Other assignments Member of the Elected 2017
Managing Director: (2003–2006). ABB, Officer, Electrolux Group (2001–2008). European Works Council. Assignments Committee assignment Member of the
various positions within Industrial Chief Financial Officer (2000–2001) and for SEKO. Member of municipal council in Audit Committee
Services & Automation (1994–2003). Head of Business Development (1998– Norrtälje municipality and Vice-Chairman Board meeting attendance 10/10
Infrasonik Sarl, Managing Director 1999), Sapa Group. Positions within the in Norrtälje Vatten och avfall AB. Committee attendance 8/8
and creation & management of the Electrolux Group (1989–1998), including Elected 2017
subsidiaries in France, UK, USA & Poland as Vice President and Head/Director of Committee assignment Member of the
(1989–1994). Mergers & Acquisitions (1995–1998). Remuneration Committee.
Elected 2023 Elected 2017 Board meeting attendance 9/10
Committee assignment Chair of the Committee assignment Audit Committee attendance 3/3
Remuneration Committee. Committee chair.
Board meeting attendance 10/10 Board meeting attendance 10/10
Joel Hersan (1979) Christer Gustafsson (1959)
Employee representative (deputy) Employee representative (deputy)
Committee attendance 3/3 Committee attendance 8/8
Education 3-year upper secondary Education 4-year education in technology.
degree in electricity distribution. Current position Employee representative
Further education in project manage- for Ledarna (the Association of
ment, leader ship, labour law and health Management and Professional Staff).
& safety. Employed at Vattenfall since 1986, currently
Current position Deputy Employee in the staff function for the engineering
representative for SEKO Facket för department, Forsmarks Kraftgrupp AB.
Service och Kommunikation. Vattenfall Other assignments Representative for
employee since 1999, currently as Team Energy & Technology, Confédération
Manager at Vattenfall Services Nordic AB. Européenne des Cadres (for energy issues).
Other assignments Assignments for Chairman of Ledarna at Vattenfall and
SEKO. European Works Council at Vattenfall.
Elected 2023 Elected 2013
Board meeting attendance 10/10 Board meeting attendance 10/10
Vattenfall Annual and Sustainability Report 2025 68
Corporate governance report / Executive Group Management
Executive Group Management
Anna Borg (1971) Kerstin Ahlfont (1971) Catrin Jung (1976) Jonas Bengtsson (1970) Sjur Jensen (1966)
President and CEO Senior Vice President, Chief Financial Officer Senior Vice President, Head of Business Area Senior Vice President, General Counsel and Senior Vice President, Head of Business Area
Vattenfall employee since 2017 and 1999–2015. Vattenfall employee since 1995 Wind Secretary to the Board of Directors and Markets
Education Master in Economics and Political Education M.Sc. Eng. Vattenfall employee since 2002 responsible for Corporate Security & Resilience Vattenfall employee since 1993
Science. Previous positions Vice President Human Education Industrial Engineering – Energy Vattenfall employee since 2024 Education M.Sc. KTH, Systems engineering.
Previous positions CFO, Vattenfall (2017–2020), Resources (2015–2020) Head of Finance Region Previous positions: Vice President – Head of Education LL.M. Previous positions Vice President, Head of
Senior Vice President, Business Area Markets, Nordic (2014–2015), Vice President Controlling Business Unit Offshore (2020–2025), Head of Previous positions Head of Corporate Affairs, Business Unit Assets (2016–), Vice President,
Vattenfall (2017), Senior Vice President, Nordic and Continuous Improvement Business Division Market Development Offshore (2017–2020), Head Polarium Energy Solutions AB (2022–2024). Head of Business Unit Asset Optimisation (2014–
Klarna (2015–2017), Vice President, Marketing Production (2012–2014), Head of Project Manage- the Portfolio and Business Development (2015– General Counsel, Secretary to the Board of 2016), Director of Operations (2004–2014), Head of
and Sales Nordic, Vattenfall (2013–2015), Vice ment Office (2010–2012). Long–standing experi- 2017), Vice President Business Strategy, Vattenfall Directors & Head of Corporate Affairs, Telia Operations (1996–2004), Risk Analyst (1993–1996)
President B2C Sales Europe, Vattenfall (2011–2013), ence from various management positions within Continental/UK (2013–2015), Various management Company AB (2014–2021). General Counsel and Other assignments Board member of North
Vice President, Sales Nordic, Vattenfall (2009– Vattenfall such as Business Group Pan Europe roles in company strategy, market and price fore- Secretary to the Board of Directors, Tele2 AB Connect A/S, Board member of several Vattenfall
2011), Management positions in Strategy, Business (2009–2010), Business Unit Heat Nordic (2000– casting, and investment strategy at Vattenfall (2007–2013). General Counsel, Telenor Sverige AB legal entities.
Development, Project Management and Trading, 2009), Product Manager Specialist (1998–2000), (2009–2013). (2002–2006). General Counsel, Utfors AB (2000–
Vattenfall (1999–2009). Consultant Vattenfall Energisystem AB (1996– Other assignments No other assignments. 2002). Associate, Mannheimer Swartling (1997–
Other assignments Board member FAM and 1998) and trainee 1995–1996). 2000).
Ruter Dam. Other assignments Board member of SJ AB. Other assignments No other assignments.
In 2025 Anna Borg did not have any significant
shareholdings in companies with which Vattenfall
has business relations.
Vattenfall Annual and Sustainability Report 2025 69
Corporate governance report / Executive Group Management
Executive Group Management, cont.
Åsa Jamal (1972) Andreas Regnell (1966) Alexander van Ofwegen (1971) Johan Dasht (1975) Annika Viklund (1967)
Senior Vice President, Head of Staff Function Senior Vice President, Head of Staff Function Senior Vice President, Head of Business Area Senior Vice President, Head of Business Area Senior Vice President, Head of Business
Communications and Acting Head of Staff Strategic Development Customer & Solutions Generation Area Distribution
Function People & Culture Vattenfall employee since 2010 Vattenfall employee since 2001 Vattenfall employee since 2020 Vattenfall employee since 2006
Vattenfall employee since 2022 Education B.Sc. Econ. Education M.Sc. Mechanical Engineering and Education MBA, Teknologie Licentiate, M.Sc. Eng. Education Computer Science, MBA.
Education Bachelor of Political Science and Previous positions Head of Nordic Business Financial Management. Previous positions CEO Vattenfall Hydro Nordic Previous positions Managing Director
Economics. Strategy, Vattenfall (2014–2015). Head of Strategy Previous positions Head of Business Unit Heat (2022–2024), CEO SKB AB (2020–2022), CEO Vattenfall Eldistribution (2010–2015,
Previous positions Senior Vice President Head of and Sustainability, Vattenfall (2010–2013). Senior Netherlands, Vattenfall (2019–2023), Head of OKG AB (2016–2020), Production and plant 2017–, Vice President Distribution Nordic,
Communications, Telia Company (2019–2020), Vice Partner and Managing Director, Managing Partner Business Unit Moorburg Hamburg, Vattenfall manager Oskarshamn 3 (2013–2015), Vice Vattenfall (2011–2015), Head of Local
President Head of Communications Sweden, Telia of Nordic Region, The Boston Consulting Group (2019–2023). Head of Condensing Netherlands, President Engineering (2011–2013), Head of Networks, Vattenfall Distribution (2008–
(2017–2020), Senior Vice President Communica- (1992–2010). Analyst and Account Manager, Vattenfall (2011–2019), Head of Heat Netherlands, Projects (2010–2011), Manager Core and Fuel Dep. 2010), Head of Marketing, Vattenfall
tions, HR and Public Affairs, Bonnier Broadcasting/ Citibank (1989–1992). Vattenfall (2015–2019). Plant Manager Hemweg (2007–2009), Engineer (2006–2007), Trainee Distribution (2006–2008), Nordic Resource
TV4 (2012–2017), Managing Director and Partner, Other assignments Chairman of the Board of (2007–2011). Manager Finance & Control, Nuon (2005–2006). Manager IBM Global Service (2005– 2006),
JKL (2006–2012), Consultant, JKL (2000–2006). Green Cargo AB. Board member of HYBRIT (2004–2007). IT manager, Nuon (2001–2003). Client Unit Executive Manager Public Sector
Other assignments Board Member of British- Development AB and Energiföretagen Sverige Sales manager, Stork NV (1997–2000). Process IBM Sweden (2004–2005), Consultant
Swedish Chamber of Commerce. – Swedenergy – AB. Engineer, Stork NV. (1995–1997). Manager IBM Global Services (1998–2003).
Other assignments Financial Manager of Other assignments Chairman of the
Vattenfall N.V. Netherlands, Vattenfall representa- Board of Energiföretagens Arbetsgivare
tive in the Supervisory Board of GASAG (2025–). förening (EFA) AB. Board member of
the Confederation of Swedish Enterprise,
Teracom AB and Wise Group AB.
The electricity distribution operations
are unbundled from Vattenfall’s other
Persons who left the Executive operations in accordance with Swedish
Group Management in 2025 and British legislation. The Head of
Business Area Distribution is not a
• Helene Biström member of the EGM.
Head of Business Area Wind
• Martijn Hagens
Head of Business Area Markets
Vattenfall Annual and Sustainability Report 2025 70
Corporate governance report / Proposal for the Annual General Meeting
Proposal for the Types of remuneration and more
The remuneration has to be competitive, capped,
pany and thus receives consultancy fees in addition to
the director’s fee. If this is the case, the assignment
Salary and employment conditions for employees
Remuneration to senior executives shall not be mar-
Annual General Meeting appropriate and not market-leading in relation to com- shall be examined by the Board of Directors on a case- ket-leading in relation to comparable companies but
parable companies, and may consist of the following by-case basis, be clearly separate from the ordinary should be moderate in character. In the preparation of
The Board’s proposed guidelines for remuneration components: Fixed cash salary, severance pay, pension board assignment, limited in time and regulated by writ- the Board’s proposal for these remuneration guidelines,
of senior executives benefits and other benefits. Variable remuneration ten agreement between the company and the member. salary and employment conditions for employees of the
These guidelines cover the President and other mem- must not be paid to senior executives. The remuneration for such assignments shall be con- company have been taken into account by including
bers of the executive group management as well as Premiums for retirement and survivors’ pension ben- sistent with these guidelines. information on the employees’ total income, the com-
other executives which, when applying the International efits shall be defined contribution solutions that do not ponents of the remuneration and increase and growth
Position Evaluation (IPE) model, have positions of IPE 68 exceed 30 percent of fixed annual cash salary, unless Termination of employment rate over time, in the Remuneration Committee’s and
or higher. The guidelines also cover board members, to benefits are provided through a group pension plan If the company gives notice of termination, the period of the Board’s basis of decision when evaluating whether
the extent their remuneration is not decided by the applied to an enterprise. In that case, the contributions notice must not exceed six months and severance pay the guidelines and the limitations set out herein are
Annual General Meeting. The guidelines are designed are determined by the terms and conditions of the pen- must be limited to at most twelve months’ salary. Sever- reasonable.
in accordance with the Swedish Government’s princi- sion plan. Any expansion of a group pension plan above ance pay is to be paid monthly and consist only of the
ples for remuneration for senior executives, as defined the pay level covered by the plan has to be on a defined fixed monthly salary with no pension benefits or other The decision-making process to determine, review
in the Swedish State Ownership Policy, dated 20 Febru- contribution basis where the maximum contribution is benefits added. In case of new employment or some and implement the guidelines
ary 2025 (www.regeringen.se). The guidelines shall 30 percent of the part of salary above the cap. The other additional paid assignment or income from busi- The Board has established a Remuneration Committee.
apply to remuneration agreed upon, and changes made retirement age must follow the recommended retire- ness activity, remuneration from the terminating com- The members of the Remuneration Committee are
to already agreed remuneration, after the guidelines ment age (“riktåldern”). pany shall be reduced by an amount equivalent to the Board members, which – with the exception of any
have been adopted by the 2026 Annual General If a salary swap scheme is offered, the solution has to new income during the period covered by salary for employee representatives – are independent of the
Meeting. be cost-neutral. notice of termination and severance pay. No severance company and its executive management. The Com
Other benefits may include, among others, company pay is paid if the employee gives notice of termination. mittee’s tasks include preparing the Board’s decision
The guidelines’ promotion of the company’s cars. Compensation in connection with work incapacity Severance pay is paid until the agreed age of retire- to propose guidelines for remuneration to senior execu-
business strategy, long-term interests and due to illness shall follow the terms and conditions for ment at the latest and is never paid after the recom- tives. The Board shall annually prepare a proposal for
sustainability sick pay and disability pension set out in applicable col- mended retirement age (“riktåldern”) in force at any guidelines and annually submit it to the general meet-
Vattenfall has formulated a strategy to reach the goal of lective agreements. Any expansion of group disability given time. ing for decision. The Remuneration Committee shall
enabling fossil freedom. The business strategy is fur- insurance above the pay level covered by collective Additionally, remuneration may be paid for non-com- also follow and assess the application of the guidelines
ther described on the web page https://group.vattenfall. agreement has to correspond to market practice. pete undertakings. Such remuneration shall compen- for remuneration to senior executives as well as the
com/about-us/strategy. As regards employment relationships governed by sate for loss of income and shall only be paid in so far current remuneration structures and levels of remuner-
A prerequisite for the successful implementation of non-Swedish legislation, the appropriate adjustments as the previously employed executive is not entitled to ation in Vattenfall. The President and other members of
Vattenfall’s business strategy and safeguarding of its may be made concerning pension benefits and other severance pay. The remuneration shall amount to not the executive management do not participate in the
long-term interests, including its sustainability, is that benefits so as to follow mandatory rules or established more than 60 percent of the monthly income at the Board’s processing of and resolutions regarding remu-
Vattenfall is able to recruit and retain qualified person- local practice; in doing so, the overall purpose of these time of termination of employment and be paid during neration-related matters, in so far as they are affected
nel. To this end, it is necessary that Vattenfall offers guidelines has to be satisfied as far as possible. the time the non-compete undertaking applies, how- by such matters.
competitive remuneration. These guidelines enable It shall be avoided that a board member or deputy ever not for more than 12 months following termination The Board certifies that the remuneration in question
Vattenfall to offer the senior executives a competitive board member is engaged as a consultant in the com- of employment. is in compliance with the guidelines set by the general
total remuneration.
Vattenfall Annual and Sustainability Report 2025 71
Corporate governance report / Proposal for the Annual General Meeting
meeting in such way that before a decision is made on Proposed distribution of profit cial position and earnings, and that the Administration ment and the statutory sustainability report according
remuneration and other terms of employment for a sen- The Annual General Meeting has at its disposal Report for the parent company and the Group presents to the Swedish Annual Accounts Act, as defined in the
ior executive, written documentation shall be available retained profits, including profit for the year, totalling a fair overview of the development of the parent compa- ESRS Content index on pages 141–142 have been pre-
that shows the company’s total cost. The proposal for SEK 139,372,199,311. The Board of Directors proposes ny’s and the Group’s operations, financial position and pared in accordance with the European Sustainability
decision shall be drafted by the Board’s Remuneration that the profits be distributed as follows: earnings and describes significant risks and uncertain- Reporting Standards (ESRS) and have been adopted by
Committee and thereafter be decided by the Board. ties that the companies in the Group face. In addition, the Board of Directors.
The company’s auditors shall perform a review to To be distributed to the the undersigned certify that the sustainability state-
ensure that the set remuneration levels and other terms shareholder: SEK 8,000,000,000
of employment have not been exceeded and, in accord- To be carried forward: SEK 131,372,199,311
ance with the Swedish Companies Act, shall once a
year – not later than three weeks before the Annual The proposed distribution corresponds to a dividend
General Meeting – issue a written statement as to of SEK 60.74 per share. The dividend is proposed to be
whether the adopted guidelines have been adhered to. paid on 7 May 2026.
Deviations from the guidelines Statement by the Board of Directors pursuant to The Annual and Sustainability Report was approved by the Board of Directors and CEO in Solna, 19 March 2026
The Board of directors may temporarily resolve to devi- the Swedish Companies Act, Chapter 18, Section 4
ate from the guidelines, in whole or in part, if in a spe- Based on the parent company’s and Group’s financial
Mats Granryd, Chairman of the Board
cific case there is special cause for the deviate and a position, earnings and cash position, the Board of
deviation is necessary to serve the company’s long- Directors is of the opinion that the proposed distribu-
term interests, including its sustainability, or to ensure tion of profits will not lead to any material limitation of Pär Ekeroth Nina Linander Christian Levin
the company’s financial viability. The Board makes the the Parent Company’s or Group’s ability to make any
decision on deviation from the guidelines. As set out necessary investments or to meet their obligations in
Carola Puusteli Ingemar Engkvist Robert Lönnqvist
above, the Remuneration Committee’s tasks include the short and long term. In view of the above, the Board
preparing the Board of Directors’ resolutions in remu- of Directors finds the proposed dividend, totalling
neration-related matters, which includes any resolu- SEK 8,000,000,000 to be carefully considered and Rolf Ohlsson Jeanette Regin Fredrik Rystedt
tions to deviate from the guidelines. In such a case, the justified.
Board of Directors shall, in the company’s remuneration
Anna Borg, President and CEO
report, disclose the deviation and the reasons therefor. The Board of Directors’ and the President’s
assurance upon signing the Annual and
Review of the guidelines Sustainability Report for 2025
A review of the guidelines for remuneration to senior The undersigned certify that the consolidated accounts Our audit report and our assurance report on the statutory sustainability report were submitted on 24 March 2026
executives was performed for decision by the Annual and the Annual Report have been prepared in accord- PricewaterhouseCoopers AB
General Meeting on 28 April 2026. This review was ance with International Financial Reporting Standards
based on changes to the Swedish State Ownership Pol- (IFRS), as endorsed by the European Commission, Eva Carlsvi Aleksander Lyckow
icy, which in particular entailed that previous deviation for application within the EU, and generally accepted Auditor-In-Charge, Authorised Public Accountant
by Vattenfall from the Government’s definition of senior accounting principles, respectively, and give a true and Authorised Public Accountant
executives became irrelevant. fair view of the parent company’s and the Group’s finan-
Vattenfall Annual and Sustainability Report 2025 72
Sustainability
at Vattenfall
Sustainability is the business .................................... 74 Social
Policies and governance ................................................. 107
ESRS 2 General disclosures Processes ................................................................................... 108
About this report ...................................................................... 75 S1 Own workforce ................................................................ 109
Governance of sustainability matters ................... 76 S2 Workers in the value chain .................................... 113
Strategy, business model and value chain ........ 77 S3 Affected communities ............................................... 117
Interests and views of stakeholders ....................... 79 Entity specific disclosure:
Double materiality assessment ................................. 80 Security of supply ................................................................. 120
Material impacts, risks and opportunities .......... 82 Non-material social disclosures
→ Diversity, equity & inclusion ........................... 121
Environment
Policies and governance ................................................... 83 Governance
EU Taxonomy .............................................................................. 84 G1 Business conduct ......................................................... 124
E1 Climate change .................................................................. 85
Non-material governance disclosures
E4 Biodiversity and ecosystems ............................... 97
→ Tax ....................................................................................... 126
E5 Resource use and circular economy ........... 102
Non-material environmental disclosures Sustainability notes
→ Water ................................................................................ 106 Accounting policies and notes ................................. 127
→ Pollution ......................................................................... 106 EU Taxonomy notes and tables ................................ 133
ESRS content index .............................................................. 141
ESRS disclosure requirements
incorporated by reference ............................................. 143
Datapoints that derive from
other EU legislation ............................................................. 144
Ten-year overview of sustainability data .......... 146
ESG ratings ................................................................................ 148
Auditor’s assurance reports ........................................ 149
Vattenfall Annual and Sustainability Report 2025 73
Sustainability Statement
Sustainability is the business
Highlights in 2025
The transition to a net-zero economy
is one of the greatest challenges of
our time. This transition is dependent
on changes to the energy system,
and impacts all aspects of society, as
sustainable economic development,
social progress and climate issues
are interlinked.
General Environment Social Governance
The transition paves the way to a sustainable future for
people as well as for business. The decarbonisation of –6% 54% 1.7 1,974
Vattenfall’s assets and customers, and the build-out at reduction of absolute Scope 1, of composite materials in Lost Time Injury managers and other
scale of new fossil-free electricity and distribution 2 and 3 CO2e emissions by decommissioned wind turbines Frequency reduced relevant employees
sources, are the greatest contributions which Vattenfall 6 percent compared to 2024 were reused, refurbished, to 1.7 from 2.1 in 2019. attended integrity training.
can make to the energy transition. These contributions and 29.7 MtCO2e since 2017. repurposed, or recycled.
form the basis of our commitment to reach net zero in
2040. Not only do we need to secure the financial Read more on Read more on Read more on Read more on
pages 75–82 pages 83–106 pages 107–123 pages 124–126
sustainability that allows us to invest in the large-scale,
high-paced transformation required to reach net zero in
2040, but we also recognise that our contribution to the
transformation should benefit society, local communi-
ties, and biodiversity as well. This is very closely linked to
the concept of a just transition.
In this sustainability statement, we present our mate-
rial sustainability topics as determined by a double mate-
riality assessment. The impacts, risks, and opportunities
“We continue to enable fossil freedom that drives society forward, as a profitable
(IROs) related to these topics, as well as associated poli- energy company. It is not our sustainability strategy, it is our business strategy.”
cies, actions, metrics, and targets are further presented Anna Borg, President and CEO of Vattenfall
in each topic-specific chapter.
Vattenfall Annual and Sustainability Report 2025 74
Sustainability Statement / General disclosures
ESRS 2 General disclosures
About this report
Vattenfall is committed to open and transparent
reporting on its material sustainability topics, as it Statutory sustainability reporting material information for users of the sustainability statement as order for Vattenfall Management System instructions (page 63)
demonstrates our commitment to operating s ustainably. Vattenfall’s Board of Directors approved the sustainability state- defined in the ESRS. The non-material information is not part of to be valid. Before an instruction is approved, Vattenfall per-
Such transparency also forms the basis for dialogues ment on 19 March 2026. Vattenfall is subject to statutory sus- the formal sustainability statement in accordance with the ESRS forms an “unbundling check” to ensure that nothing in the con-
with our stakeholders, which helps to build trust and tainability reporting in accordance with the Swedish Annual and are clearly marked and has a grey background so that the tent conflicts with the unbundling rules or clarify that the elec-
ensure accountability as we communicate on key Accounts Act (1995:1554). The sustainability statement is found reader is able to easily separate this information from the formal tricity distribution business is exempt from certain rules in the
issues and the actions taken to address them. in the following section of the Vattenfall Annual and Sustain sustainability statement. For simplicity, the non-material disclo- instruction. Vattenfall has not identified any notable impacts on
ability Report: pages 73–150, except page 147. The sustainability sures are reported with reference to KPIs and concepts found the sustainability statement due to the effects of unbundling.
statement meets the statutory reporting requirements in and defined in the ESRS. The non-material information is
accordance with the Swedish Annual Accounts Act and incorpo- included for Water (page 106), Pollution (page 106), Diversity, Value chain scope
rates reporting in line with the EU Taxonomy Regulation (EU Equity, and Inclusion (page 121), and Tax (page 126). The sustainability statement covers Vattenfall’s upstream and
2020/852) and the respective delegated acts. The statement is downstream value chain for disclosures as required by the
About this report ....................................................................................... 75 Principles of consolidation
structured in four sections as required by the European Sustain- ESRS. For key overarching assumptions and limitations with
Governance of sustainability matters .................................... 76 The sustainability statement is consolidated according to
ability Reporting Standards (ESRS, (EU) 2023/2772): General regards to the value chain, see pages 77–78. For specific
Strategy, business model, and value chain ....................... 77 the same principles as outlined in Note 3 to the consolidated
information, Environmental, Social, and Governance. The sustain- assumptions and limitations regarding the supply chain in
Interests and views of stakeholders ........................................ 79 accounts, hence the consolidated quantitative ESG data com-
ability notes on pages 127–151 are an integral part of the sustaina- terms of individual metrics, see the accounting policies and
Double materiality assessment (DMA) ................................. 80 prises the parent company, Vattenfall AB, and subsidiaries con-
bility statement. Cross-references to information in these notes notes in relation to the metrics in question (pages 127–132).
Material impacts, risks, and opportunities ........................ 82 trolled by Vattenfall AB. The subsidiary undertakings that are
are made from each part and the sustainability notes constitute Value chain estimation and uncertainties
included in the consolidation and thus exempted from their
a continuation of the respective part of the statement. Where estimations are applied in determining a metric, this is
own sustainability reporting following this report, if applicable,
Important changes to previous years can be found in Note 26 to the consolidated accounts. Joint disclosed in the accounting policies and notes section in the
In 2025, Vattenfall changed its sustainability reporting frame- operations are included with Vattenfall AB’s proportionate Sustainability notes (page 127–132). The use of estimates pri-
work for non-material disclosures. Non-material disclosures are share. Greenhouse gas emissions and biodiversity data linked marily affects disclosures related to Scope 3 upstream green-
now reported with reference to ESRS (Minimum Disclosure to associated companies, joint ventures or other entities are house gas emissions, where obtaining certain supplier data
Requirements, MDRs), instead of the Global Reporting Initiative included when Vattenfall demonstrates operational control of presents challenges. Another area where estimations are made
(GRI) as in previous years. the asset (for more information see page 127). is for worked hours by external contractors (used in accident
KPIs), which are estimated based on activity or cost data. As
Basis for preparation Unbundling of the electricity distribution business the quality and availability of sustainability data continues to
Conformity with standards and regulations In accordance with legislation in the EU and the United improve, reliance on estimates is expected to decrease, thereby
The sustainability statement has been prepared in accordance Kingdom, operations of Vattenfall’s electricity distribution net- enhancing the accuracy of the reported information. In the
with the CSRD and the ESRS. The data points and narratives works are separated from sales and generation of electricity, interim, Vattenfall remains focused on strengthening non-
follow the disclosure requirements that were deemed material so-called unbundling (page 64). These operations, performed financial reporting processes and internal controls to further
through an information materiality assessment process (see by Distribution System Operators (DSOs), have been included enhance data quality, consistency, and completeness.
page 81) following a double materiality assessment (DMA) (see in Vattenfall’s own operations for the DMA and in the reporting
pages 80–81). Vattenfall is required to disclose according to the throughout this sustainability statement. The DSOs in Vattenfall Detailed accounting policies
EU Taxonomy Regulation (EU)2020/852. For more information Group are Vattenfall Eldistribution AB, Västerbergslagens Elnät For more in-depth information on accounting policies, assump-
about the basis for preparation of the EU Taxonomy reporting, AB, and Gotlands Elnät AB. Vattenfall Networks Ltd was a part tions, and disclosure gaps, see the Sustainability notes (pages
including comparative numbers, see pages 84 and 133–140. of the Vattenfall Group until the divestment in December 2025. 127–132).
With regards to steering, unbundling means that the DSOs
Inclusion of non-material information shall, according to law, have effective and independent decision-
In addition to reporting on material topics, Vattenfall has chosen making rights. Hence, while the DSOs within Vattenfall Group
to include selected information on certain non-material topics, as typically apply the same governing documents as the rest of
this information is requested from stakeholders for use at the Group, these must be approved by these subsidiaries them-
an aggregated level. We assess that this does not equate to selves and published in their local management system in
Vattenfall Annual and Sustainability Report 2025 75
Sustainability Statement / General disclosures
Governance of sustainability matters
We embed the governance of sustainability matters into our pages 57–72 further details the internal governance structure, Sustainability-related performance in incentive schemes Vattenfall has data support systems and an established
structures and processes. This is accomplished by establishing and the respective roles of the administrative, management, Vattenfall offers different variable pay programmes depending rganisational structure in place. Vattenfall has for many years
o
oversight and monitoring systems for sustainability matters and supervisory bodies in relation to business conduct. on the type of employee. Members of the EGM are not eligible prepared sustainability reports in accordance with the GRI
and ensuring that the necessary expertise is in place. for variable pay, as variable remuneration for senior executives standards and has developed an organisation including clearly
Overview of sustainability policy is prohibited as specified in the ownership policy for state-owned defined roles and responsibilities, processes and internal con-
Role of governance bodies in sustainability matters The President and CEO has the overall responsibility for companies in Sweden. However, most other managers in trols deemed necessary to prepare a correct sustainability
Vattenfall’s governance structure and the responsibilities of addressing sustainability matters, including Vattenfall’s material Vattenfall are eligible for a variable pay programme, called STI statement.
its governing bodies are described in detail in the corporate IROs (see Table 3 on page 82). This responsibility is exercised (Short Term Incentive), where half of the payout is based on the To be able to reach the same level of quality assurance as
governance report (pages 57–72). In summary, the Board of either independently or in collaboration with internal govern- company’s performance and the other half is based on individual with financial reporting, Vattenfall initiated an internal controls
Directors (BoD) is responsible for establishing Vattenfall’s over- ance bodies, including the EGM, which sets the overarching performance. The company’s performance is measured by three project for sustainability reporting in 2025 with the aim to
all strategic direction, setting operational targets, and ensuring direction for the Group. equally weighted key performance indicators (KPIs), of which one ensure reliable reporting with formalised control documenta-
appropriate systems, processes, and controls are in place for Within the EGM, the Head of Strategic Development leads is sustainability-related. Hence, this sustainability-related metric tion. In 2025, reporting risks have been assessed for all appli
effective risk management and operations. The Executive sustainability topics under a mandate from the CEO and the accounts for at least 15 percent of the proportion for variable cable ESRS disclosure requirements and all relevant reporting
Group Management (EGM) focuses on the Group’s overall BoD. The Group’s Head of Sustainability reports directly to remuneration. The sustainability-related KPI measures GHG risks were categorised as either high, medium or low. Following
direction and addresses—within the framework of the CEO’s the Head of Strategic Development on sustainability matters. emissions intensity, using the metric gCO2e/kWh. Sustainability- this, controls are being developed for the highest rated report-
mandate from the BoD—matters of importance for the Group. Sustainability performance is followed up through annual related metrics may also be included in the individual perfor- ing risks including Group and local controls. These controls will
The BoD and the EGM possess general knowledge about deep-dives, during which the CEO reviews sustainability-related mance metrics for roles where applicable, resulting in a higher then be fully formalised and put in place.
sustainability matters, including business conduct matters, and challenges, progress, and future actions together with the top share of sustainability-related metrics for certain individuals. The
are supported by subject matter experts across Vattenfall for management of each business area. Further details on the STI programme is reviewed and approved by the BoD annually. Statement on due diligence
more detailed knowledge. Operational responsibility for sustain- responsibilities of the CEO and the Executive Group Manage- Vattenfall is committed to follow due diligence processes out-
ability is held by the Head of S trategic Development. In addition, ment are provided on pages 59–62. Risk management and internal controls over lined by the UN Guiding Principles on Business and Human
the Integrity organisation and Internal Audit provide independ- In accordance with its Rules of Procedure, the BoD identifies sustainability reporting Rights and the OECD Guidelines for Multinational Enterprises
ent expertise related to governance on sustainability matters. how sustainability issues impact the company’s risks and busi- Vattenfall works with internal controls across the organisation (see Figure 11 on page 107). The due diligence elements are
The Head of Legal and Corporate Security & Resilience, sup- ness opportunities and ensures that stakeholder engagement to identify and mitigate both financial and sustainability-related integrated into governance, strategy, business model, and oper-
ported by their organisation, possesses expertise on business is delegated to the CEO. Sustainability aspects including envi- data quality risks. Our risk management framework and internal ations both at Group level and in the respective business areas.
conduct matters. ronmental impacts and human rights are integrated into the controls for sustainability reporting are outlined in the risk Human rights and environmental due diligence processes are
The table of ESRS disclosure requirements incorporated by BoD’s strategic oversight and business planning processes. report (pages 46–52) and the corporate governance report also integrated in internal governance and steering documents.
reference (page 143) provides cross-references to information The table of ESRS disclosure requirements incorporated by (pages 57–72). For further information on where this information Detailed descriptions of how these processes are applied
on Vattenfall’s governance bodies, including their composition, reference (page 143) provides reference to more detailed can be found, see the table of ESRS disclosure requirements across environmental, social and governance areas are pro-
roles, and responsibilities. The corporate governance report on information. incorporated by reference (page 143). Beyond these controls, vided in the relevant sections of the sustainability statement
(see Table 1 below).
Table 1. GOV-4 Statement on due diligence
Core elements of due diligence General disclosures, pages 74–82 Environment, pages 83–105 Social, pages 107–119 Governance, pages 124–125 Entity specific, page 120
Embedding due diligence in governance, Introduction to general section, IRO interaction Introduction environment, IRO interaction with strategy Introduction social, IRO interaction with strategy Policy and governance
strategy, and business model with strategy and business model and business model (E1, E4) Identification and assessment and business model (S2, S3)
of IROs (E1, E4, E5) Policy and governance (E1, E4, E5)
Engaging with affected stakeholders Interest and views of stakeholders Impacts, risks and opportunities (E4) Policy and govern- Introduction social, IRO interaction with strategy Introduction social, Policy
in all key steps of the due diligence ance (E4) and business model (S1, S2, S3), Processes (S1, and governance
S2, S3)
Identifying and assessing adverse impacts Double materiality assessment, Strategy, Impacts, risks, and opportunities (E4), Identification Introduction social, Processes (S1, S2, S3) Policy and governance
business model and value chain and assessment of IROs (E1, E4, E5) Impacts, risks, and opportunities (S1, S2, S3)
Taking actions to address those Actions (E1, E4, E5) Introduction social Actions (S1–4) Actions
adverse impacts
Tracking the effectiveness of those efforts Targets and Metrics (E1, E4, E5) Targets and Metrics (S1, S2), Introduction social Targets and Metrics Targets and Metrics
and communicating
Vattenfall Annual and Sustainability Report 2025 76
Sustainability Statement / General disclosures
Strategy, business model, and value chain
Business model overview Portfolio changes during 2025
Products, services, markets, and customers Vattenfall has divested the Rostock waste incineration plant in
Vattenfall is an integrated utility mainly within the fossil-free Germany. Vattenfall has divested the Rostock waste incinera-
electricity value chain. Our core activities revolve around elec- tion plant in Germany, and our electricity distribution business
tricity and heat generation, distribution as well as customer in the UK (Vattenfall Networks Ltd). We also signed an agree-
sales of electricity, heat, and gas. Vattenfall also provides ment to divest the Velsen condensing power plants in the
energy-related services to customers, such as energy efficiency Netherlands, and ownership was transferred in January 2026.
solutions, energy storage, and electric vehicle charging. There were no other significant changes to the portfolio.
Vattenfall’s main markets exist across Sweden, Germany, the
Netherlands, Denmark, and the United Kingdom. Looking at Disclosures relating to specific activities
Vattenfall’s workforce, it is concentrated in northwestern Vattenfall generates heat and electricity from gas and sells gas
Europe, with the largest presence in Sweden, the Netherlands, to customers for final consumption. The revenues from these
and Germany (see page 110). activities were SEK 9.0 and 41.6 billion, respectively in 2025.
Sustainability is fully integrated into Vattenfall’s strategy, with Vattenfall has oil-fired reserve power plants in Sweden, though
sustainability matters featuring within Vattenfall’s strategic the generated volumes from these activities were negligible
targets (pages 11–12). For internal steering purposes, the strate- during 2025 (< 0.1 TWh of electricity and heat, respectively). Oil
gic targets are broken down into more specific targets for each has also been used for starting up biomass-fuelled power
business area and sometimes also for individual business units. plants, but this was phased out by the end of 2025. It is imprac-
In addition to this, Vattenfall has targets and goals for material ticable to split out revenues for this, but the scope is naturally
ESG topics throughout the business, details of which can be very limited and hence with negligible revenue impact.
found under each topical section of the sustainability state- Vattenfall is not active within chemicals production, controver-
ment (pages 73–126). sial weapons, nor in the cultivation and production of tobacco.
Vattenfall is not involved in activities which are banned in
certain markets as referred to in the ESRS.
Value chain assumptions and limitations ponents, such as the production, distribution, and selling
Vattenfall’s entire value chain has been assessed on of power and heat, are included in the assessment. Sup-
topics which have a material contribution to our business. pliers are also considered whenever they have a signifi-
To be included in the DMA, a value chain part needs to cant size or impact on our business, regardless of their
have a distinguishing character in our business, a sizeable tier. Additionally, minor business components, such as
contribution to overall company performance, a signifi- our customer benefit shop, are aggregated into an overall
cant number of people working on it, or a noticeable hardware and services category (see Figure 1, page 78).
effect on people or the environment. While many of these As Vattenfall does not sell products and services with the
topics are difficult to measure, there are practical exam- intention that they get resold, there are no material Tier 2
ples that illustrate their application. Major business com- customer relationships to consider.
Stornorrfors power plant
Vattenfall Annual and Sustainability Report 2025 77
Sustainability Statement / General disclosures
Strategy, business model, and value chain, cont.
Value chain overview chain also includes services we source from external contrac- power and heat generation facilities, though closely related, are Downstream
Upstream tors, and materials for the assets under construction. The last our other owned assets. These are assets that do not directly Downstream activities include all the commodities, services,
Vattenfall’s upstream value chain consists of three compo- part of our upstream value chain includes financial services, generate electricity, such as storage activities and flexibility ser- and joint ventures that Vattenfall produces as output for its cus-
nents: fuel and commodities sourcing, procurement of goods which for example include insurances, treasury activities, and vices. There are also operations related to grids and networks, tomers and partners. The majority of the activities relate to the
and services, and procurement of financial services. As we are pensions. For more information about our supply chain, see which include our district heating networks, Swedish electricity sale of commodities such as gas, electricity, heating, and cool-
an integrated utility company, a large part of our value chain pages 114–115. distribution activities, and InCharge e-mobility charging net- ing that are delivered to businesses and consumers. It also
consists of the fuels and commodities sourced for the opera- work. As these activities differ significantly, they have been includes access to electricity and heating connections. Hard-
tion of our power plants, as well as for some customers. The Own operations identified as separate parts in our value chain. Lastly, service ware and services are a smaller but still significant part of our
second part of our upstream value chain consists of the goods Vattenfall’s own operations can be divided into six different activities have been bundled to cluster activities such as our value chain. It includes the hardware we install at our end cus-
and services needed to keep Vattenfall running. We source a components in the value chain, with the biggest being our network solutions, contracting with end customers and trading tomers, such as rooftop solar panels, heat pumps, gas boilers,
variety of goods ranging from office laptops to generators and power and heat generating facilities. This part contains all activ- activities together since they are activities which enable and smart meters, and EV chargers, but also Power-as-a-Service
an equally diverse range of services such as logistics, engineer- ities with regards to electricity generation and heat production, optimise the other parts of our operations. For more information activities. The smallest part of the downstream activities are the
ing, and several other bundled services. This part of the value both from fossil and fossil-free sources. Separate from our about our operations, see pages 30–43. leased assets, which consist of amongst others, vessels and
interconnectors. Finally, Vattenfall forms joint ventures occa-
sionally with strategic partners.
Figure 1. Vattenfall’s value chain
Inputs Outputs
Power
Energy Flexible Market
Fuel and Electricity g enerating
storage services
Distribution
services
commodities facilities
Financial Solar 20,869
capital Wind employees
Page 158 Water
Uranium Vattenfall’s value chain
EV
Electricity The activities of Vattenfall are Electricity from Combined
charging
Human similar enough in nature to be heat and power plants 79,700
Goods and services included in a single value chain, charging points
capital
Page 27 Financial services as all activities of the company
are related to the production,
d istribution or sale of electricity Excess renewable e lectricity fed Trading and Commodities
and heat, including supporting into a power-to-heat plant optimisation to businesses
102.1 TWh
Manufactured activities related to these. Note and households of electricity
capital Fuel and that Vattenfall is not active in Hardware
generated
Page 6 commodities
the p hysical transmission and and Services
Biomass d istribution of gas nor does it Leased assets and
Waste engage in refinement or other Joint ventures SEK 7.8
Social and Natural gas upstream fuel activities.
relationship Electricity for Third-party billion
heat pumps integration in paid taxes
capital
Page 117 Goods and services
Financial services Combined Heat storage
Heat heat and and distribution SEK 8.0
Intellectual power
billion
capital dividend proposed
Page 23 Upstream Vattenfall’s own business Downstream for 2025
Vattenfall Annual and Sustainability Report 2025 78
Sustainability Statement / General disclosures
Interests and views of stakeholders
Understanding, responding to, and being able to balance the are centrally organised, for example between investors and the Table 2. Interaction with stakeholders
varied views, interests, and priorities of Vattenfall’s different corporate Investor Relations team, while the majority are local
stakeholder groups (see Table 2) is an important part of our or project-based. In many instances, regular, formal touchpoints Stakeholder group Examples of how we engage
strategy and business model. Stakeholder views are a key input are complemented by ad-hoc interactions. The Vattenfall The owner • Annual General Meeting
for Vattenfall when considering which business opportunities Project Governance Principles, which apply throughout the • Quarterly dialogues
to pursue and how to conduct business. This is fundamental Vattenfall Group, serve as a framework to ensure that diverse
not just to maintain our license to operate, but also to be able local interests are duly acknowledged, represented, and Employees • Surveys
to sustainably create value both for the company and for our catered to in our projects. • Workers’ councils
stakeholders. Accordingly, Vattenfall aims to consistently Vattenfall’s administrative, management, and supervisory • Training and development
engage with our stakeholders in a meaningful and inclusive bodies are informed of the interest and views of stakeholders
way. The insights gained from stakeholder dialogues also both through presentations of the DMA, as well as on a case- Consumers and end-users • Customer support processes
inform our due diligence processes and double materiality by-case basis in relation to specific projects or matters of con- • Consumer panels
assessment (DMA). cern. In the case of employees, opinions are followed up annu- • B2B events
Given the wide range of stakeholders throughout our value ally through the MyOpinion survey and subsequent discussions
chain and the different markets and business areas we operate (see page 110). For more information regarding Vattenfall’s key Local communities • Consultations
in, our stakeholder engagement necessarily takes many forms stakeholders and the types of engagement activities carried • Community engagement meetings
to best adapt to the stakeholders, relevant local conditions and out in relation to the different categories of stakeholders, please • Open door events
regulations, and business context. Some forms of engagement refer to Table 2. • Community benefit funds
• Round-table discussions
Suppliers and partners • Bi-annual supplier summit
• Supplier dialogues
• Site visits and audits
• Targeted trainings
Industry peers • Industry coalitions and partnerships
• Memberships in trade associations
Investors • Industry events
• Capital markets day
• Questionnaires
Policy makers and regulators • Open dialogue with policy makers
• Open consultations
• Proactive outreach
Non-governmental and • Dialogues and meetings
international organisations
Academic institutions • Research partnerships
• Labour market fair
• Students
Nature (silent stakeholder) • Dialogues with NGOs
• Environmental Impact Assessments
• Research and ecological data collection on impacted species
Vattenfall Annual and Sustainability Report 2025 79
Sustainability Statement / General disclosures
Double materiality assessment (DMA)
In 2025, Vattenfall conducted a light update of its Double The outcome of Vattenfall’s updated 2025 DMA is presented sustainability impacts. For each activity in the value chain, clus- uring the DMA process, both positive and negative (potential
D
Materiality Assessment (DMA), following a comprehensive in Figure 2 below. Vattenfall has material sub-topics within the tering was applied when the activities contained no significant and actual) IROs were assessed. In the end, 21 IROs were
assessment completed in 2024. Both assessments were following topics: Climate change (E1), Biodiversity and ecosys- differences with regards to Vattenfall’s impact. Other than this, material.
conducted in accordance with the ESRS 1 guidelines. The tems (E4), Resource use and circular economy (E5), Own work- no prioritisation was applied at this stage to ensure that no bias
2025 update focused on reviewing and refining the information force (S1), Workers in the value chain (S2), Affected communities would be applied before the scoring phase. As Vattenfall focuses Methodologies and assumptions
and outcomes from the 2024 DMA. (S3) and Business conduct (G1). mainly on the generation of electricty and heat, distribution as Definitions of severity and likelihood, against which the IROs
The DMA was conducted by a project team of internal experts We also identified a sector-specific topic that we believe is not well as customer sales of electricity, heat, and gas, there was no were assessed, were determined by the DMA project team
from across Vattenfall, including from the Sustainability, Environ- sufficiently covered by the sub-topics in ESRS 1, namely security need to split the assessment into multiple value chains. based on their understanding of the ESRS and their experience
ment, Risk, Legal, and Finance functions. The DMA was further of supply. Security of supply was deemed material and is in the topic. Definitions were established for the assessment of
supported by an extended team of representatives from all busi- reported after section S3, included as an entity specific disclo- Process impacts for environmental, social, and governance topics to
ness areas. The analysis resulted in a list of material impacts, sure (see page 120) as the impact relates to end-customers. A mapping of all relevant IROs was performed by group-level ensure a proper match to the topics. The definition of likelihood
risks, and opportunities (IROs), which can be found in full in experts in 2024, and this was evaluated and updated in 2025. was set by experts from risk management and was applied in a
Table 3 on page 82. The results are used to shape our strategic Value chain and stakeholder assessment To properly and thoroughly assess all IROs, information was unified way for the assessment of impacts and financial effects.
focus areas, ensuring that we meet current and future stake- A value chain and stakeholder analysis was performed as part included from internal policies, business plans, strategy docu- Next, all impacts were assessed based on a combination of
holder expectations. of the DMA. In this process, all Vattenfall business activities and ments, and internal expertise covering our full value chain. severity and likelihood, with an exception for human rights-
All sub-topics in application requirement (AR)16 of ESRS 1 assets – upstream, downstream, and within our own operations During this mapping phase, and also further on in the process, related impacts where likelihood was ignored if the IRO was
have been assessed based on an evaluation of all related IROs. – were mapped across geographies and analysed for their Vattenfall strived to strike a balance between level of detail and material from a severity point of view. Risks and opportunities
added value, where we attempted to avoid unnecessary detail were assessed based on a combination of likelihood of occur-
while ensuring sufficient quality of the output. The identified rence and the potential magnitude of financial effects on
Figure 2. Double materiality assessment outcome
risks from the IROs have not been mapped or prioritised against Vattenfall in the short-, medium- and long-term.
other risks or included in risk-assessment tools. The process to The assessments were based on pre-defined scorings for
E1 – Climate change adaptation E1 – Climate change mitigation identify IROs considered Vattenfall’s entire value chain, including likelihood of occurrence, severity of impact, and the potential
E1 – Energy E4 – Direct impact drivers of biodiversity loss geographies, activities, sectors for all topics, and for G1, trans magnitude of financial effects. Cumulative financial effects have
E5 – Resource inflows, including resource use action types and structures. For details on the IRO identification been considered in the assessment and wherever possible, the
processes for E1, E4, and E5, see pages, 128–131. financial assessments relate to magnitude of financial effects
During the light DMA update in 2025, the full list of IROs was on Vattenfall’s earnings before interest and taxes (EBIT) and
Material
reassessed, leading to some IROs being added, removed or company equity.
adjusted to ensure accuracy. A total number of 34 IROs were However, as materiality is not always confined to quantitative
identified as a result of the DMA, all of which were mapped aspects, scorings also rely on qualitative factors and ranges
against the value chain to assess completeness. The identified of possible financial effects for example caused by impacted
IROs were checked and verified by business representatives, reputation/brand. Furthermore, linkages between impacts and
ensuring that the IROs identified reflected current status at financial effects were considered as well as dependencies on
Financial
the time of assessment and that nothing material was missed. natural and social resources.
E2 – Pollution E4 – Impacts on the state of species
E3 – Water and marine resources E5 – Waste
S4 – Consumers and end users S1 – Working conditions
S2 – Working conditions
Non-material topics included in reporting
Non-material
S2 – Other work-related rights
S3 – Communities’ economic, In addition to disclosures required for material topics The topics are the following:
social and cultural rights under the ESRS, Vattenfall has decided to provide limited • E2: Pollution (page 106)
S3 – Rights of indigenous peoples information on selected non-material topics. This is done
in response to certain ESG ratings, stakeholder interest • E3: Water and marine resources (page 106)
G1 – Corporate culture
Security of supply (entity specific) or industry relevance of a topic. Each topic has been • S1: Equal Treatment and Opportunities (pages 121–123)
assessed as non-material in the 2024 DMA and the 2025 • Entity-specific: Taxes (page 126)
light update. The non-material disclosure does not imply
reclassification as material.
Non-material Material
Impact
Vattenfall Annual and Sustainability Report 2025 80
Sustainability Statement / General disclosures
Double materiality assessment (DMA), cont.
Scoring Thresholds The process included expert assessment, business stake- IRO interaction with strategy and business model
During the full DMA in 2024, a three-phase scoring approach After the initial scoring phase in the full DMA conducted in holder verification, and final endorsement by the steering Impacts
was executed, which included extensive workshops and inter- 2024, a preliminary threshold was applied to ensure that a committee, EGM, and BoD. In addition, a 2025 external bench Sustainability has been integrated into Vattenfall’s strategy for
views. In the light DMA in 2025, the results from 2024 were preliminary materiality could be determined both for the human marking exercise compared Vattenfall’s 2024 DMA results with many years and most of our material positive and negative
reused and updated when necessary, which was made possi- rights calculation exception as well as for input for the work- competitors to ensure alignment with industry standards while impacts are important for the success of our business. More
ble by adding an additional phase for final recalibration. shops. After all scoring was finalised, and based on feedback reflecting Vattenfall’s specific operational context. details are provided in the topic-specific chapters. Vattenfall has
from the interviews and the DMA project’s steering committee, adhered to the time horizons stipulated in ESRS 1 when assess-
Phase 1 (2024) – Group-level experts the threshold was calibrated to ensure that the results were New material sub-topics for 2025: ing impacts. For the long-term horizon our processes are gener-
Once the IROs had been identified, group-level experts assessed accurate and representative for Vattenfall. During the light • E1 – Climate change adaptation: has been identified as ally somewhat less mature. Impacts on the environmental side
them based on criteria according to the ESRS guidelines. The update in 2025, the threshold was not adjusted. material due to the potential cumulative impacts of future are strongly connected to our business model as an integrated
individual scores were combined into a single score per IRO, physical climate risks and the high uncertainty associated utility. For instance, our electricity networks require significant
which formed the basis for discussions in Phase 2 and Phase 3. Finalisation and endorsement with different climate scenarios. land use and our hydropower plants impact surrounding eco-
The DMA results have been validated according to internal pro- systems. On the social side, Vattenfall’s impacts sometimes
cesses, including approval from the EGM and the BoD. In addi- • E5 – Waste: has been identified as material due to its direct
Phase 2 (2024) – Workshops originate from our business model, such as communities
tion, the DMA has been subject to review by Vattenfall’s external link to access to critical resources and the need to ensure
Eight workshops were conducted with 64 representatives from affected by our assets and infrastructure, whereas other social
auditors, and has further been integrated as an annual recurring their efficient and circular use. This includes the responsible
across Vattenfall. During these workshops, the Phase 1 scores impacts are more strongly linked to the cultural aspects of our
assessment in our management processes, with the aim to management of all waste streams, including nuclear waste
were presented at sub‑topic level, after which participants dis- strategy, such as corporate culture.
ensure that the assessment and the impacts, risks, and oppor- which was previously assessed as a non-material entity-
cussed their accuracy from a business perspective and pro-
tunities identified reflect the most accurate view of Vattenfall. specific topic in 2024.
vided feedback on whether any scores should be adjusted. Current financial effects
The information from these workshops was used by the project In addition, during the writing phase of this report, content • S2 – Other work-related rights: child and forced labour has Vattenfall’s financial reporting is currently not structured in
team to recalibrate the scores. After the results of the work- experts have been thoroughly involved to assess whether the been identified as material due to the ongoing risk of occur- a way that isolates the impact that sustainability matters have
shops were gathered, alignment sessions were held with both material IROs remained accurate towards the year’s end. As rence within complex value chains, despite thorough screen- on our financial position, performance, and cash flow. None of
the EGM and the BoD to align on the results. sustainability is at the core of Vattenfall’s strategy, IROs relating ing processes. In addition, the upcoming regulatory develop- the identified material risks and opportunities are likely to lead
to sustainability matters are part of regular management pro- ments, including the Corporate Sustainability Due D iligence to material adjustments to the carrying amounts of assets and
Phase 3 (2024) – Interviews cesses. An investigation into the possibilities of integrating the Directive (CSDDD) and the EU Forced Labour Regulation have liabilities reported in Vattenfall’s consolidated financial state-
During the third phase, 22 internal and four external key stake- DMA-process to identify, assess, and manage impacts and risks elevated the topic’s significance and reporting relevance. ments within the next year. More information on how specific
holders were interviewed, to gather input on the recalibrated into Vattenfall’s overall Enterprise Risk Management framework risks and opportunities interact with the strategy and business
scores from an overall company perspective. The internal stake- has been initiated. However, the process to identify, assess, and Removed material sub-topics for 2025: model is described in the topical chapters.
holders were selected in collaboration with the business, and, manage opportunities in accordance with the DMA is not yet • S4 – Information related impacts: following an additional
next to the EGM, also consisted of heads of strategic functions integrated into Vattenfall’s overall management process. in-depth assessment with Vattenfall’s legal department and Anticipated financial effects
such as Environment, IT, R&D, and Procurement. External stake- an industry benchmark, the materiality of this sub-topic was Vattenfall has used the phase-in provision in accordance with
holders were selected in collaboration with external advisors, Rationale for the light update in 2025 reassessed and found to have been overestimated in 2024. ESRS 1 Appendix C and hence no disclosures of anticipated
where it was ensured their area of expertise covered the entire After a thorough assessment – including annual reviews of As a result, it has been classified as non-material in 2025. financial effects (E1-9, E4-6, and E5-6) have been made in
range of ESRS topics, and were selected from a range of NGOs, human rights management, environmental management, and this report. The phase-in provision has also been used for S1-7.
customers, and governmental bodies. Feedback from the indi- business consultations – it was concluded that apart from the In addition to the changes on sub-topic level, the number of
vidual interviews was used to recalibrate the scores gathered phase- out of coal in our value chain no significant changes had material IROs was increased from 20 in 2024 to 21 in 2025, Entity-specific disclosures
during Phase 1 and 2. occurred in Vattenfall’s business between 2024 and 2025. This see IRO list (page 82) for further information. In addition to the IROs covered by ESRS disclosure require-
justified the use of the light DMA approach, which leverages the ments, we have identified one entity-specific topic, Security of
Final recalibration (2025) robust data and insights from the previous year’s full assess- Material information supply, due to its critical role in ensuring operational continuity
The full list of IROs was assessed based on developments in ment. After the finalisation of the double materiality assessment, an and meeting customer commitments. For this topic, we report
Vattenfall’s sector and business. Whenever it was believed the assessment of the individual disclosure requirements was made on the MDRs and entity-specific metrics. For S2 Workers in the
score of an IRO was no longer representative, the score was Key differences between the 2024 and 2025 DMA by content experts. We have followed the same principles for all value chain. there are no set metrics to report on, thus here
re-evaluated. While in some cases this led to minor changes in The main change in Vattenfall’s DMA process from 2024 to types of disclosures (data points, narratives, and semi-narratives) we have identified entity-specific metrics. For E4 Biodiversity
the scoring of individual IROs, it caused shifts in materiality on 2025 is the shift from a comprehensive “full” DMA in 2024 to a where information related to non-material topics have been and ecosystems we also report on a couple of entity-specific
sub-topic level. All adjustments in the IRO scoring have been “light” DMA update in 2025, in line with EFRAG’s guidance (IG 1, assessed as non-material. Within material topics, individual dis- metrics.
aligned with, and verified by, the extended team of business paragraphs 170–171). Because no significant business changes closure requirements have been assessed towards the list of
representatives initially consulted in Phase 2. Overall sub-topic occurred, the 2025 update reused the 2024 results as a base- material and non-material IROs to assess whether the disclosure
materiality was discussed in internal interviews with key stake- line and focused on recalibrating IRO scores where needed, should be included in the reporting or not. For a complete list of
holders on group level, prior to starting the formal endorsement validating assumptions, and integrating new ESRS insights. disclosure requirements included in the report, see the ESRS
steps. content index on pages 141–142 in the Sustainability notes.
Vattenfall Annual and Sustainability Report 2025 81
Sustainability Statement / General disclosures
Table 3. Material impacts, risks, and opportunities (IROs)
,
Actual or Time Up- Own Down-
Material Topic Material Sub-Topic Type Description potential horizon1 stream operations stream
E1 – Climate Climate change Physical climate risks: Acute and chronic physical hazards, such as rising temperatures and extreme weather events, will impact Vattenfall’s assets and value chain. All
change adaptation Physical climate hazards are linked to security of supply, as they may cause disruptions in electricity generation and transmission.
Climate change Direct and indirect GHG emissions: Vattenfall impacts the climate directly and indirectly through GHG emissions throughout the value chain, Actual All
mitigation with the largest impact coming from Scope 3 emissions.
Climate transition risks: Failure to meet Vattenfall’s climate targets pose a material risk for our brand, reputation, access to capital, and attractiveness to customers and All
talent. Vattenfall’s ability to reach these targets is heavily dependent on the pace of societal decarbonisation.
Energy Opportunities in the energy transition: The energy transition offers growth options for Vattenfall, mainly related to potentially higher demand for our main product, Mid- and
electricity, but also from higher value of integration between Vattenfall’s products as well as additional services related to managing electricity consumption. long-term
E4 – Biodiversity Direct impact drivers Impact on biodiversity driven by climate change: Direct and indirect GHG emissions affecting habitats and ecosystems. Actual Long-term
and ecosystem of biodiversity loss
Land use, fresh water use, and sea use change: Vattenfall’s operations and our upstream value chain has a negative impact on biodiversity through changes in Actual All
terrestrial, aquatic, and marine environments when land is transformed for energy infrastructure projects.
Fragmentation of rivers and landscapes: This is caused by physical barriers such as hydropower, wind turbines, and electricity distributions lines and leads to disrupted Actual All
habitat connectivity and ecosystem functioning.
Project execution risks related to biodiversity: Impact on biodiversity and ecosystems can cause operational disruptions, such as delays in permitting processes. All
These delays may jeopardise timelines leading to project cancellations, increased costs, reduced revenue growth, or diminished valuations of projects in the pipeline.
Impacts on the Impact on threatened species: Impact on threatened migratory species like birds and fish due to increased mortality from hydropower plants, distribution grid or Actual All
state of species windfarms.
E5 – Resource Resource inflows, Availability and price of materials needed for the energy transition: Limited availability and other supply risks connected to low-emission, recycled, and critical raw Long-term
Use and Circular including resource materials pose a risk to Vattenfall to secure necessary materials. This could lead to delayed or cancelled projects as well as higher input costs which could impact both
Economy use revenue growth and project returns.
Waste Waste generated throughout asset life cycle: A part of the waste generated during the life cycle of assets is not effectively reintegrated into the economy. This linear Potential All
practice leads to resource loss, reducing availability of critical resources as well as environmental impacts and limits the opportunity to maximise the use of materials
at their highest value for as long as possible.
S1 – Own Working conditions Unhealthy working conditions: Having unhealthy working conditions could negatively affect employees’ mental health, work-life balance, and career development and Potential All
Workforce as such create dissatisfaction.
Health and Safety of own workforce: Our operations include some high-risk activities, mainly related to construction and maintenance of assets, where workers risk Potential All
injuries if hazards are not correctly identified and mitigated.
S2 – Workers in Working conditions Health and Safety in the supply chain: Supply chain workers risk being injured if Vattenfall’s suppliers or sub-suppliers provide inadequate equipment and/or PPE, Potential All
the Value Chain or have poor safety measures.
Other work-related Child and forced labour in the supply chain: Engaging with suppliers, contractors and customers in countries identified as high‑risk for child and forced labour entails Potential Short- and
rights potential risks that such practices may occur, as well as related reputational, health and safety risks for the workers involved. mid-term
S3 – Affected Communities’ Direct negative effects on living conditions: The development of new assets can negatively impact living conditions through factors such as noise, shadow flicker, Actual All
communities economic, social visual disturbance, and disruption to communication.
and cultural rights
Actual Mid- and
Community benefit: Positive impact on communities through job creation, investments in community development, public infrastructure, and related initiatives.
long-term
Rights of indigenous Avoidable negative impacts of assets or operations on the way of living for indigenous peoples: Impacts include the disruption of the daily livelihoods and Potential All
peoples customs of the Sámi population, for example through impacting their reindeer herding, their tangible or intangible indigenous assets, and impacting heritage of
cultural significance.
Entity Specific Security of supply Actual Short- and
Security of supply of electricity: Disruption to business and household electricity supply which could cause both bodily and economic harm.
mid-term
G1 – Business Corporate culture Good corporate culture: A strong corporate culture characterised by Vattenfall’s commitment to achieve fossil freedom, together with a shared understanding of our Actual All
Conduct core values, contribute to strong employee engagement and positive interactions with communities, customers and suppliers..
Poor corporate culture: A weak corporate culture may lead to silence culture, lack of transparency and trust, and an increased risk of corruption and bribery. Potential All
Risk Opportunity Positive impact Negative impact 1. Time horizon: Short-term: <1 year, Mid-term: 1–5 years, Long-term: >5 years
Vattenfall Annual and Sustainability Report 2025 82
Sustainability Statement / Environment
Environment
Policies and governance
Vattenfall monitors and reports on key environmental
topics which impact its business and are impacted Vattenfall’s environmental topics are primarily governed by the
by its business. Doing so enables us to develop our Group Environmental Policy and Environmental Management
strategy to minimise negative environmental impacts, System (EMS). Applicable throughout Vattenfall Group, the Envi-
minimise risk, capture opportunities, and meet ronmental Policy and EMS encompass Vattenfall’s own opera-
s takeholder expectations in the present and future. tions as well as our upstream and downstream value chains.
The Environmental Policy and EMS apply to Distribution System
Operators unless in conflict with unbundling laws and regula-
Policies and governance ................................................................... 83 tions.
EU Taxonomy .............................................................................................. 84 Vattenfall’s CEO, together with Vattenfall’s Executive Group
E1 Climate change .................................................................................. 85 Management, has overall accountability for Vattenfall’s environ-
E4 Biodiversity and ecosystems ............................................... 96 mental impact. Legal accountability follows the organisational
E5 Resource use and circular economy ............................ 102 structure of legal entities. The Environmental Policy is approved
by the Board of Directors, and implemented through the EMS.
Non-material environmental disclosures
The EMS is part of Vattenfall’s Corporate Management System
→ Water .................................................................................................... 106
(see page 63), and is implemented in local environmental
→ Pollution ............................................................................................. 106
management systems as applicable.
The Environmental Policy defines Vattenfall’s approach
to managing its environmental impacts, with a particular focus
on the material environmental matters identified through the
Double Materiality Assessment (see page 82): climate change,
biodiversity and ecosystems, and resource use and circular
economy. Together with the EMS, the Environmental Policy aims
to prevent, mitigate, and remediate adverse environmental
impacts and risks, while identifying related opportunities. For the
upstream value chain, the Code of Conduct for Suppliers and
Partners establishes additional requirements for the manage-
ment of these material topics (see page 107).
Vattenfall’s Environmental Policy is publicly available, whilst
the EMS and related policies exist as internal steering documents.
Management of Vattenfall’s environmental risks is ensured
through their integration into Vattenfall’s Enterprise Risk Man-
agement system, and potential opportunities are included in
the yearly strategy and business planning process (see pages
46–52). All business areas conduct an annual environmental
management review to assess adherence to the Group Environ-
mental Policy and relevant EMS. Environmental targets are also
assessed during this annual review.
At year-end 2025, nearly 100 percent of Vattenfall’s produc-
tion and distribution portfolio had an EMS certified according to
ISO 14001. Exceptions included, for example, a small number of
backup power units. The certifications undergo annual third-
party audits, and recertification occurs every third year.
Vattenfall Annual and Sustainability Report 2025 83
Sustainability Statement / Environment
EU Taxonomy
The EU Taxonomy Regulation (EU 2020/825) establishes a 85 percent of Vattenfall’s capex during 2025 was aligned ria for c
limate change mitigation are not met. Turnover not Material changes 2025
common classification system that defines when an economic under the taxonomy, of which capex related to transmission being eligible consists primarily of sales of electricity, gas, and In 2025, the European Commission issued a legislative pack-
activity can be considered sustainable, referred to as taxonomy and distribution of electricity accounted for 38 percent and heat to customers that are not produced by Vattenfall. Taxon- age, Omnibus I, which included a proposal to simplify taxonomy
aligned. Its ultimate aim is to steer investments toward wind power accounted for 26 percent. Other important invest- omy turnover is highly affected by market prices of electricity reporting in the form of a delegated act. The delegated act
activities that help achieve the ambitions of the EU Green Deal. ments were made in electricity generation from existing nuclear and results from hedges related to electricity production. See entered into force on 28 January 2026.
The taxonomy requires large non-financial companies to dis- and electricity generation from hydropower. Investments in page 138 in the Sustainability notes for more information. Omnibus I means that a new summary table has been intro-
close the share of capital expenditure (capex), turnover, and Vattenfall’s generation of heat and electricity from gas repre- 82 percent of Vattenfall’s opex in 2025 was aligned. The duced that provides an overview of the KPIs. The previous three
operating expenditure (opex) that is eligible and aligned under sent the absolute majority of not aligned capex. These activities majority of Vattenfall’s taxonomy aligned opex relates to trans- mandatory tables for each KPI have been changed and focus
the taxonomy. are not aligned as the technical screening criteria for climate mission and distribution of electricity, electricity generation on eligibility and alignment. The tables for nuclear and gas have
change mitigation are not met. from nuclear, hydro, and wind. Opex related to Vattenfall’s gen- been removed. In addition, there is a possibility not to assess
Outcomes 2025 40 percent of Vattenfall’s turnover is eligible, of which 35 per- eration of heat and electricity from gas represents the absolute non-material activities in terms of eligibility and alignment.
In 2025, the majority of Vattenfall’s capex and opex were cent is aligned. The majority of Vattenfall’s taxonomy-aligned majority of not aligned opex as the technical screening criteria This year, Vattenfall is reporting in accordance with the new
assessed as being eligible and aligned with the technical turnover relates to electricity generation from wind, electricity for climate change mitigation are not met. tables, while the specific tables for nuclear and gas have been
screening criteria set out in the Climate Delegated Act (Com- generation from nuclear, transmission and distribution of elec- Important to note is that non-eligible activities according to removed. Vattenfall has not applied the simplifications regard-
mission Delegated Regulation (EU) 2021/2139, and Commission tricity, and electricity generation from hydropower. Turnover the taxonomy regulation do not necessarily mean that they are ing the eligibility and alignment assessment for non-material
Delegated Regulation (EU) 2023/2485) and the Complemen- related to Vattenfall’s generation of heat and electricity from not sustainable. It only indicates that the activity is not covered activities.
tary Climate Delegated Act for nuclear and gas (Commission gas represents the absolute majority of not aligned turnover. by, and hence not assessed, under the taxonomy framework. For detailed information on the alignment assessment and
Delegated Regulation (EU) 2022/1214). These activities are not aligned as the technical screening crite- See Figure 3, and the KPI tables including comments on accounting policies, please go to the section EU Taxonomy
pages 133–140. notes and tables on pages 133–140.
Figure 3. Capex, turnover, and opex for 2025
Capex Turnover Opex
Capex
11% Turnover 11%
Opex
4% 35%
7%
SEK SEK SEK
31 235 8
Eligible – aligned
Eligible – not aligned
Non-eligible
billion billion billion
85% 65% 5% 82%
Eligible – aligned, 85% Eligible – aligned, 35% Eligible – aligned, 82%
Eligible – not aligned, 4% Eligible – not aligned, 5% Eligible – not aligned, 7%
Non-eligible, 11% Non-eligible, 60% Non-eligible, 11%
Vattenfall Annual and Sustainability Report 2025 84
Sustainability Statement / Environment
E1 Climate change
Impacts, risks, and opportunities
Material IROs1 Type
The results of the resilience analysis are used to assess Physical climate risks – climate adaptation
Direct and indirect GHG emissions Negative Opportunities in the energy transition whether measures in place are sufficient to manage identified Acute and chronic physical climate change hazards such as
Opportunity
Value chain: upstream, own operations, impact Value chain: own operations risks and ensure business resilience, they also serve as input to rising temperatures and extreme weather events will impact
and downstream (actual)
Vattenfall’s strategy, investment decisions, and current and Vattenfall’s assets and value chain. Physical climate hazards are
While climate change poses a threat to companies and society, planned mitigation actions. linked to security of supply since they may lead to disruption of
Vattenfall has direct and indirect material impacts linked to the energy transition also offers material opportunities for electricity generation and transmission.
greenhouse gas (GHG) emissions caused by the use of fossil Vattenfall in terms of growth. This is mainly driven by potentially Transition risks – climate mitigation Vattenfall’s physical climate risk assessment is based on the
fuels throughout the value chain. Within Vattenfall’s operations higher demand for electricity, Vattenfall’s main product, and Transition risks can arise from the global shift towards a low- hazards described in the EU Taxonomy Climate Delegated Regu-
(Scope 1 emissions), the largest impact results from the use increased integration value between our products, as well as
carbon economy, impacting both projects and assets. To lation (EU) 2021/2139. A screening is done to identify the relevant
of fossil gas in power plants. Outside Vattenfall’s operations additional services associated with managing electricity
address this, the resilience analysis is based on a broad range hazards, and related risks linked to our operations are then iden-
(Scope 3), emissions are mainly associated with the sale c onsumption. However, the realisation of said opportunities
of energy transition scenarios covering the period from 2025 to tified by internal experts. The assessment takes into account
of fossil gas used by customers and the GHG emissions can be challenged by factors such as lengthy permit procedures
2060 and a comprehensive assessment of the development likelihood, magnitude, and duration of the hazards where rele-
a ssociated with electricity sourced on the market which is or a lack of system capabilities, such as a shortage of balancing
of Vattenfall’s GHG emissions across all emission scopes. The vant, and geographical characteristics. The assessment is
then sold to end c ustomers. power.
scenarios aim to capture key uncertainties and trends in the reviewed annually, taking into account material changes linked
European power sector, exploring different pathways towards to our operations and scientific developments. Climate risks are
1. For more information see page 82.
a decarbonised Europe. This covers macroeconomic trends, explicitly included in Vattenfall’s Enterprise Risk Management
Climate transition risks More information on how climate-related impacts, risks, policy, market design as well as technological developments. process, as well as taken into consideration in investment deci-
Risk
Value chain: own operations and opportunities (IROs) were identified is available in the Vattenfall aims to select scenarios that achieve a scientifically sions for all large long-term projects and commitments.
accounting policies for E1 section i of the Sustainability notes supported and detailed view, see Table 5 on page 86 for more Vattenfall assesses physical climate risk scenarios based on
A part of Vattenfall’s supply chain emissions stem from fuel (page 128). information. The scenario analysis is conducted annually and is the Representative Concentration Pathways (RCPs) developed
sourcing and from materials such as concrete and steel, which
used to inform investment decisions, fair value assessments, by the Intergovernmental Panel on Climate Change (IPCC). The
are used to construct new assets. To reduce GHG emissions
impairment tests, and strategic planning. climate scenarios portray potential future emission scenarios
across the entire value chain, Vattenfall relies on the overall IRO interaction with strategy and business model and changes to physical climate parameters. The RCP 4.5 and
transition of the energy system, the decarbonisation of other
Management of identified IROs is embedded in Vattenfall’s Results of the resilience analysis RCP 8.5 scenarios were chosen because they represent two
sectors, and demand and attractive conditions for fossil-free
s trategy and business model. Direct and indirect emissions Climate change is at the core of Vattenfall’s strategy and busi different possible future outcomes – a medium and a high GHG
products and services. Consequently, some aspects of
are both addressed via investments in the energy transition ness model, with focus on electrification and fossil-free energy. emissions scenario – providing a relevant range for assessing
Vattenfall’s decarbonisation plan are dependent on external
and emission reduction engagements with actors in the value Vattenfall’s ownership policy for state owned companies in physical climate risks. See Table 5 on page 86, for more infor-
system-wide developments. Failure to meet our climate targets
chain. These investment and value chain engagement activities Sweden also stipulates leadership in the energy transition. This mation about the scenarios.
poses a material risk to Vattenfall’s brand, reputation, access
also cover capturing opportunities in the transition. For risks strategic position and alignment of the business model with the Physical climate risks are assessed based on the following
to capital, and attractiveness to customers and talent.
linked to the transition, Vattenfall aims to take a leading role by Paris Agreement’s 1.5°C scenario positions Vattenfall well to timeframes: short-term 0–1 years (based on Vattenfall financial
investing in solutions for transition risks as well as educating handle transition risks, especially as the resilience analysis model timelines), medium-term 1–5 years (based on the financial
and advocating for fossil-free solutions and the wider informs strategic decisions and business p lanning. model timelines and aligned with business planning timeframe),
Physical climate risks decarbonisation of society. However, transition risks can arise from external system- and long-term (until 2050 or aligned with the lifetime of assets
Value chain: upstream, own operations, Risk wide developments, such as the societal speed of the energy where relevant). There have been no exclusions in the upstream
and downstream Resilience analysis transition. The energy transition scenarios are important tools and downstream value chain when conducting the assessment.
A resilience analysis is conducted annually with the aim to pro- to highlight and act on such dependencies. To address these The current level of data granularity for our upstream and down
Acute and chronic physical hazards, such as rising tempera- vide insights on how transitional and physical climate risks may dependencies, we continuously engage in close collaboration stream value chain is substantially lower than for our own
tures and extreme weather events impact Vattenfall’s assets
affect Vattenfall’s assets, operations, and upstream and down- with partners and customers, invest in EU taxonomy-aligned operations.
and value chain, altering the risk landscape. Physical climate
stream value chain over different time horizons. The analysis activities, and monitor political and regulatory developments.
hazards are linked to security of supply, as they may cause
also aims to describe the resilience of Vattenfall’s strategy and For examples of transition risks and mitigation measures, Results of the resilience analysis
disruptions in electricity generation and transmission.
business model in relation to climate change. see Table 4 on page 86. Climate change is already affecting Vattenfall’s assets and
operations, and the impacts are expected to increase. The over-
all conclusion of the assessments conducted to date is that
Vattenfall Annual and Sustainability Report 2025 85
Sustainability Statement / Environment
E1 Climate change, cont.
Vattenfall is well equipped to adapt to a changing climate. For ing, droughts, or wildfires. The changing climate means that, better forecasts for production planning and by strengthening based on geospatial coordinates specific to Vattenfall’s loca-
physical risks impacting energy infrastructure or critical func- where relevant, the margins and operations are adjusted to our p reparedness for extreme weather events. For examples of tions of both assets and offices, and focused on key identified
tions, adaptation measures for managing risks are in place and account for larger changes and variability. For example, this physical risks and mitigation measures, see Table 4. physical climate risks. The findings of this analysis have verified
work is being carried out continuously to mitigate risks and involves adapting hydropower dams to be able to manage During 2024, an analysis was commissioned to model how our existing risk inventory and are integrated into the resilience
reduce vulnerability to external disruptions. To a large extent, larger future flows, ensuring cooling solutions for exposed infra- key climate parameters such as temperatures, sea-level, and analysis.
this work is also driven by today’s weather-related risks and the structure and weather-proofing the grid. It also means a sharper precipitation are projected to change according to the IPCC
natural variability of physical parameters, such as wind, flood- focus on improving our understanding and resilience through climate s cenarios RCP 4.5 and RCP 8.5. This assessment was
Table 4. Examples of physical and transition risks related to climate change Table 5. Transition and physical scenarios
Transition risks – examples Drivers: Legal • Market • Technology • Reputation • Policy
Description Potential consequences Mitigation measures Scenario Narrative – key forces and drivers Coverage – key input and constraints Time horizon Sources
Loss of revenue linked to energy Reduced profit Strategic roadmap for energy transition, including RCP 4.5 Intermediate physical climate scenario The analysis covers Vattenfall’s markets in Present day – 2050 Intergovernmental
transition and phase-out of fossil new opportunities (physical) where emissions peak around 2040 and Northern and Central Europe. It is partly (or lifetime of asset Panel on Climate
fuels and assets the global temperature stabilises at just based on geospatial coordinates specific where relevant) Change (IPCC)
below 2˚C by 2100. Assumes moderate to Vattenfall’s locations, but most assess-
Inability to meet customer Loss of market share and/or customers Focus on delivering on strategy; providing efforts to mitigate emissions through inter- ments are based on regional data.
expectations ustainable energy solutions; customer dialogues
s national policy measures, technological
advancements, and changes in energy
Stranded assets due to new Financial consequences and brand damage Strategic roadmap for energy transition with production and use.
demands and requirements 1.5˚C-science-based target approach
RCP 8.5 High-end physical climate scenario where The analysis covers Vattenfall’s markets in Present day – 2050 Intergovernmental
Policy and regulatory developments Financial consequences and brand damage Proactive monitoring of policy and regulatory (physical) emissions continue to accelerate, and the Northern and Central Europe. It is partly (or lifetime of asset Panel on Climate
misalign with Vattenfall’s strategy evelopments; stakeholder dialogues
d temperature increase stabilises at just based on geospatial coordinates specific where relevant) Change (IPCC)
below 4˚C by 2100. The scenario assumes to Vattenfall’s locations but most assess-
Increased use of intermittent energy Impacts on operational planning, increased need Investments in storage/batteries, flexible assets no significant changes in policies to reduce ments are based on regional data.
sources for example wind and solar for balancing with other energy sources and related commodities emissions, and it is characterised by high
population growth, high energy demand,
and continued reliance on fossil fuels.
Physical risks – examples Drivers: Temperature • Precipitation • Extreme weather • Wind • Fires
Description Potential consequences Mitigation measures Energy Controlled transition scenario Scenarios cover macroeconomic trends, Present day – 2060 Government
transition Government-steered energy transition policy, market design, as well as techno- reports and targets
Extreme rain fall events resulting Increased need for spilling water in hydropower Adjusted regulation of flow; investments to scenarios reaching net zero in 2050 and aligned with logical developments. on renewable build
in high river flows plants, risk of debris, and landslides along rivers increase dam and spillway capacity efforts to limit global temperature rise to The analysis covers the latest global out and carbon
1.5˚C. trends and key uncertainties in the devel- neutrality, commer-
Infrastructure damage from Wind-felling of trees from reduced ground frost, Continuous work to strengthen the electricity grid Supported market transition opment of the European power sector and cial benchmarks on
extreme weather events increased risk of forest fires due to more frequent and infrastructure; increased preparedness Energy transition with selective govern- explores different pathways towards a for example power
droughts ment support reaching net zero delayed in decarbonised Europe. It excludes develop- market projections,
2055 (2.5˚C pathway) reflecting a moder- ment of the agriculture and forestry sector. and country spe-
Warmer temperatures affecting Reduced heating demand in winter, increased Financial projections are managed as part of the ate level of climate action. The analysis indirectly covers cific weather data
heating and cooling demand cooling demand in summer long-term market outlook and business planning Vattenfall’s full value chain although the
Delayed transition main focus is on own operations. The
Snow and icing problems affecting Increased snow/icing problems in the northern Continuous work to strengthen the electricity grid Energy transition is hindered by geopoliti- transition scenarios outline the transition
infrastructure Nordic region, reduced problems in the south and infrastructure; increased preparedness cal or operational hurdles, net zero is only rate and competitiveness of fossil and
reached in 2060 (3˚C pathway). There free technologies. Therefore, Vattenfall
Supply chain disturbances due Increasing risk for supply chain disturbances from Diversification of the supply chain; risk mapping would be insufficient climate action and can draw conclusions about demand and
to climate change for example water scarcity, storms, and flooding and supplier dialogues on vulnerabilities higher global temperature rises. supply in the upstream and downstream
value chain.
Vattenfall Annual and Sustainability Report 2025 86
Sustainability Statement / Environment
E1 Climate change, cont.
Policies and governance • The climate offsetting instruction governs both types and
Senior management responsibilities, policies, and management use cases for the use of climate offsets and carbon removals
systems which govern environmental topics (page 83) also in Vattenfall. All offsets need to follow selected external certifi-
apply to the management of climate change IROs. Stakeholder cation frameworks. Offsets are not used to claim climate
perspectives are indirectly included in the policy development neutral products, counted towards climate targets, nor to
through the DMA process. The relation between these policies replace the need for emission reductions.
and climate change IROs are presented below. • Procurement standards on priority materials and services
• The Environmental Policy and Environmental Management set minimum environmental requirements, including
System (EMS) (see page 83), set the foundational principles thresholds on GHG emissions. The standards are imple-
and steering for the climate change IROs. The Environmental mented through the EMS.
Policy is publicly available to inform relevant stakeholders on
Vattenfall’s overall ambition regarding climate change. The Strategy – climate transition plan
EMS ensures implementation of internal climate-related pro- Vattenfall is aiming to be a leader in the energy transition by
cesses and policies, providing an established way of working enabling fossil freedom as a profitable energy business. This
for all Vattenfall employees. Additionally, Vattenfall’s total means aligning and adapting our business in accordance with
GHG emissions (Scope 1, 2, and 3) are part of Vattenfall’s the Paris Agreement. For Vattenfall, this requires a dual
variable pay programme, where sustainability related metrics approach of decarbonising our own operations and supply
account for at least 15 percent of the proportion for variable chain, while simultaneously investing in solutions for a fossil-
remuneration (see more details on page 76). free energy system, contributing to the decarbonisation of
• The Code of Conduct for Suppliers and Partners (see page s ociety. Our climate transition plan captures this through the
107) require suppliers and partners to systematically address strategy and focus areas presented in Figure 4 on the following
climate change within their operations (Scope 1 and 2 emis- page.
sions). A similar management approach is encouraged for Vattenfall’s net-zero roadmap is a core component of the
Scope 3 emissions. Suppliers and partners should addition- transition plan. The roadmap is guided by verified and science-
ally implement climate adaptation measures where applica- based climate targets (see page 90).
ble, and are encouraged to develop and track progress To date, Vattenfall has successfully reduced emissions in line
towards GHG emission reduction targets. with existing target trajectories. Our net-zero roadmap and key
decarbonisation levers are presented in Figure 4 and Table 6
• Vattenfall’s CEO decision making process (see page 62) on pages 88 and 89 respectively.
includes explicit steering to ensure that major investments
are assessed against physical and transition climate risks.
• The Environmental Risk Management process, part of
Vattenfall’s Enterprise Risk Management system (see page
45), governs climate risk assessments and the use of relevant
climate scenarios for existing assets and business activities.
This process ensures assessment and documentation
requirements for legal frameworks such as the EU Taxonomy
are met.
Blakliden Fäbodberget wind farm
Vattenfall Annual and Sustainability Report 2025 87
Sustainability Statement / Environment
E1 Climate change, cont.
Figure 4. The key components of our climate transition plan
1 Vattenfall’s transition plan strategy
covers the full value chain 2 Vattenfall’s roadmap to Net Zero
and key decarbonisation levers 3 Contributions of
decarbonisation levers
Change Expected Expected
MtCO2e Total share of contribution contribution
since 2017 decarbonisation 2017–2030 2030–2040
60
–56%
until 2040 MtCO2e MtCO2e
ENERGY GENERATION
Securing a fossil-free energy supply 50 Achieved closure of coal
• Reducing own emissions in own operations
17% –9 N/A1
• Operating current assets 40 Own operations (Scope 1 and 2)
• Investing in future capacity and
capacity upgrades of existing assets 30
Reduce fossil emissions from
20
5% natural gas and waste to heat –1 –2
Energy generation Energy system Value chain Own operations (Scope 1 and 2)
10
0
2017 2021 2022 2023 2024 2025 2030 Increase fossil-free
target 2040 33% electricity sales –14 –4
target Electricity sales (Scope 3 cat. 3d)
ENERGY SYSTEM
Connecting and optimising
the energy system 2025
• Operate and invest in infrastructure Achieved 100 percent renewable and Reduce emissions from
and flexibility assets recycled fuel for district heating in Sweden. 26% sold fossil fuels –14 –5
• Connect new generation and Sold fossil fuels (Scope 3. cat. 11)
c onsumption 2022
• Invest in grids Inauguration of the biobased heat plant Carpe Futurum enabling
a complete phase out of peat in the Swedish operations ~ –0.2 Mt Reduce supply chain emissions
Energy generation Energy system Value chain 11% –1 –4
2021 Rest of Scope 3
Decommissioning of the German coal power
plant Moorburg ~ –6 Mt
Carbon removals for
VALUE CHAIN 2017 <9% residual emissions N/A <5
Driving decarbonisation with 2040 target carbon removals
Base year
our customers and partners
• Drive further decarbonisation
in society through collaborat-
ing with suppliers, customers
Rest of Scope 3
and partners
Sold fossil fuels (Scope 3 cat. 11)
neration Energy system Value chain
Electricity sales (Scope 3 cat. 3d)
Own operations (Scope 1 and 2)
Carbon removals 1. Not applicable as Vattenfall has already achieved this decarbonisation lever.
Vattenfall Annual and Sustainability Report 2025 88
Sustainability Statement / Environment
E1 Climate change, cont.
Table 6. Vattenfall’s decarbonisation levers and approach towards net zero by 2040
Lever Emission scope1 Emission source Importance2 Decarbonisation approach Actions supporting the transition
Reduced use of fossil fuels Scope 1 Fossil gas used in power Phase out of fossil gas in electricity by: Continued expansion of fossil-free energy through:
in heat and power plants plants • Replacing fossil gas with biogas and/or hydrogen • Investments in new fossil-free assets
• Reduction of overall production volumes in fossil-based assets as more fossil-free • Capacity increases and lifetime extension of existing fossil-free assets.
electricity enters the system.
Fossil oil and gas Phase out of fossil fuels in district heating by: • Implementing efficiency measures for existing assets
in district heating • Integration of third-party waste heat • Building out our district heating.
• Replacing fossil fuels with biomass, biofuels
• Heat pumps and heat storages.
Fossil share of emissions Phase out of fossil-based plastic in waste stream: • Introduction of a CO2 fee for fossil waste in selected markets
from waste incineration • Work proactively to influence the fossil content of waste. • Implementing technology to track fossil waste streams (FossilEye).
Other use of Phase out fossil fuels in vehicle fleet: • Electrification of own vehicle fleet.
fossil fuels • Electrification of own transports and the use of biofuels.
Scope 2 Use of fossil-based Use fossil-free electricity for own consumption and for operation of heat pumps • Renewable energy certificates for purchased electricity.
electricity and power-to-heat in district heating.
Reduced emission Scope 3 cat. 1 and Use of resources driving Focus on decarbonising key emission drivers by circularity measures and • Increase the use of fossil-free materials with at least 10 percent near-zero steel and
from supply chain cat. 2 missions in supply chain
e the use of fossil free alternatives. c oncrete by 2030.
Scope 3 cat. 3 Upstream emissions in Phase out of fossil fuels and increase supplier requirements. • Phase out of fossil fuels in own operations in line with climate targets
fuel supply chains • Continuous engagement with nuclear fuel suppliers, including use of comprehensive
sustainability questionnaires.
Fossil-free Scope 3 cat. 3d Sale of fossil electricity Secure volumes of fossil-free electricity for customers, by sourcing • Continued expansion of fossil free energy
electricity sales fossil-free electricity. • Increase the share of fossil‑free electricity in core markets, with a target of fossil‑free
sales by 2030 in the Netherlands and by 2040 in Germany.
Reduced emissions Scope 3 cat. 11 Sale of fossil gas Transition fossil gas sold to end customers by: • Strengthen position as an energy intermediary, offering solutions such as heat pumps,
from fossil gas sales • Introducing and offering fossil-free gas such as biogas e-mobility, and solar panels for our customers
• Offering alternative heat sources such as heat pumps and district heating. • Increase biomethane blend-in for sold gas in the Netherlands.
Connecting and optimising N/A N/A Enable decarbonisation outside of our value chain by connecting customers and • Work with flexibility solutions such as battery storages, as well as develop and invest
the energy system new generation capacity. in distribution grid capacity and security of supply
• Offer services for demand/response flexibility.
Very important Important Less important
1. GHG emission scope definitions are available in the Sustainability notes on page 127–128.
2. This describes the importance of the lever in relation to achieving Vattenfall’s climate transition plan.
Vattenfall Annual and Sustainability Report 2025 89
Sustainability Statement / Environment
E1 Climate change, cont.
Transition challenges and locked-in emissions Targets
The overall pace of decarbonisation is impacted by factors Vattenfall is committed to significantly reduce emissions by
such as: (geo)political developments, government policy, the 2030 and to achieve net-zero emissions by 2040. Our climate
(commercial) availability of fossil free alternatives, technical targets cover our entire value chain and all geographies in which
feasibility, and cost to end consumers. The pace and direction we operate, aiming to mitigate negative impacts, limit transition
of these developments could affect Vattenfall’s ability to meet risks, and capture opportunities in the energy transition. These
its targets and lead to locked-in emissions. targets are verified by the SBTi, encompass all emission scopes,
For Vattenfall, the risk of locked-in emissions is mainly rele- and align fully with a 1.5˚C pathway. This ensures that Vattenfall’s
vant for fossil gas powered assets, gas supplied by Vattenfall planned emission reductions are consistent with the climate
and consumed by customers, and supply chain emissions from neutrality target set out in the EU Climate Law ((EU) 2021/1119),
hard-to-abate sectors such as heavy industries. This risk is and support the commitment in our Environmental Policy to
driven by transition delays such as limited availability of alterna- align the business with the Paris Agreement.
tives to fossil gas assets. Available alternative technologies is Vattenfall requires that any future use of carbon removals
a requirement to transition Vattenfall’s key fossil assets as they meets high standards of credibility is approved by the SBTi.
provide stability to the energy system. Permanence of removed carbon and transparency of methods
As detailed in the transition plan, Vattenfall’s ambition is to are key principles guiding our requirements for carbon removals.
take the lead in addressing these challenges both through See Table 7 and Figure 6 on page 91 for full details on
the transition of our own assets and products, and extensive Vattenfall’s climate targets.
partnerships with our customers and supply chain actors.
Progress made during the reporting period Porsi hydro power plant
Transition plan governance Vattenfall has achieved a 56 percent reduction in emissions
The transition plan is central to Vattenfall’s overall business compared to the 2017 baseline, based on absolute Scope 1, 2,
strategy and the majority of the company’s investments go into and 3 emissions. In the reporting year 2025, we reduced Scope
fossil-free energy generation or activities enabling the transition 1, 2, and 3 emissions by 6 percent compared to 2024, which is Table 7. Climate targets
such as strengthening distribution networks (see pages 135– slightly higher than expected.
Targets Own operations All sold electricity Sold fossil fuels Rest of scope 3 Total emissions
136). In 2025, overall investments in economic activities linked A trend of slower emission reductions are expected for the
to coal, oil, and gas accounted for less than two percent con- coming years. Large individual decarbonisation actions – such Scope 1 and Scope 3 use of All remaining Absolute
sisting mainly of investments in existing gas fired power plants, as coal plant closures – have already been implemented. At the Target coverage1 Scope 1 and 22 3 from all sold sold products for Scope 3 emissions
while no investments in coal were made (see page 156). The tar- same time, supply chain emissions are expected to increase as electricity sold fossil fuels categories Scope 1, 2, and 3
gets, being the central steering piece for the climate transition new fossil-free generation capacity is constructed to provide Unit gCO2e/kWh gCO2e/kWh MtCO2e MtCO2e MtCO2e
plan, have been approved by both the Executive Group Man- more fossil-free energy to the system. In addition, gas sales are
2017 – base year 110 199 15.1 6.1 52.9
agement and the Board of Directors. subject to a challenging decarbonisation environment. Despite
As economic activities under the EU Taxonomy Regulation this, ongoing decarbonisation efforts across Vattenfall will con- 2025 33.0 48.3 11.0 4.3 23.2
continue to develop, Vattenfall expects a growing share of tribute to emission reductions. Together, these developments 2030 –77%3 –78.1%3 –54.6% N/A –65.6%
taxonomy-aligned capital expenditure and turnover. This is are expected to result in a slower overall pace of emission
driven by increased fossil-free capacity and projects that sup- reductions. An overview of changes per emission scope is 2040 –91.7% –95.4% –90% –90% ~90%
port decarbonisation. Turnover may be impacted by factors presented in Figure 6.
such as electricity spot prices, hedge results, and future owner- For more information on energy use, GHG emissions and Methodology (SBTi)
ship of new assets. Our EU Taxonomy disclosures can be found accounting, GHG removals and GHG mitigation projects Own operations and All sold electricity: sectoral decarbonisation approach for the power sector.
in full on pages 84 and 133–140. Vattenfall is not excluded from financed through carbon credits, internal carbon pricing, see Sold fossil fuels and Rest of Scope 3: absolute contraction (4.2 percent absolute year on year reduction).
EU Paris-aligned benchmarks. Table 8 on page 92, Table 9 on page 93 and the Sustainability Total emissions: a combination of sectoral decarbonisation approach for the power sector and absolute contraction.
notes pages 127-128. Validated science-based target (SBTi)
1.
A ll targets are gross targets, excluding the use of emission removals and carbon credits for fossil CO 2e. Emissions included are CO2, CH4, N2O, HFCs,
PFCs, SF6 and NF3.
2. Combined target corresponding to 98 percent of Scope 1 and 2 percent of Scope 2 market-based emissions.
3. Intensity target in line with SBTi requirements.
Vattenfall Annual and Sustainability Report 2025 90
Sustainability Statement / Environment
E1 Climate change, cont.
Figure 5. Total GHG emissions in 2025, MtCO2e Figure 6. GHG emissions along the value chain, MtCO2e
Changes during the reporting year
Vattenfall’s additional commitments
Besides planned actions and targets Vattenfall has made
–6%
the following commitments towards 2030:
Rest of Scope 3, 18%
Absolute emissions (Scope 1, 2, and 3)
23
• As part of the First Movers Coalition (FMC), 10 percent Sold fossil fuels (Scope 3 cat. 11), 48%
of annually procured steel will be near-zero1 steel
• As part of the FMC, at least 5 percent of conventional Electricity sales (Scope 3 cat. 3d), 20%
aviation fuel will be replaced with sustainable aviation
fuel (SAF) Own operations (Scope 1 and 2), 15%
Own operations (Scope 1 and 2)1 Sold fossil fuels (Scope 3 cat. 11)
• As part of the FMC, 10 percent of procured concrete will
n ear-zero1 concrete MtCO e e
MtCO MtCO e e
MtCO MtCO e e
MtCO MtCO e e
MtCO
2
2 2 2 2 2 2 2
• As part of the SteelZero Initiative, Business Area Wind
20 20 20 2019.1 19.1 20 20 20 20
has committed to using 50 percent low-emission steel Rest of Scope 3, 18%
by 2030 and 100 percent by 2040
Sold fossil fuels (Scope 3 cat. 11), 48% 15.1 15.1
• Through the Fossil Free Sweden initiative, we partici- 15 15 15 15 15 15 15 15
pate in three challenges: fossil‑free transport, electrify- Electricity sales (Scope 3 cat. 3d), 20% 12.712.7
+8%
ing our vehicle fleet, and installing solar panels. Own operations (Scope 1 and 2), 15% +3% 11.011.0
10.210.2
10 10 10 10 10 10 10 10
1. As defined by the First Movers Coalition. Emissions in 6.9
own operations 6.9 6.9
6.9 6.1 6.1
increased slightly due to 5.3
5.3
5 5 increased
5 5 number4.6
of 4.6
running 5 5 5 5 from4.2
Emissions sold4.3
4.2fossil
4.3
3.3 3.3
3.4 3.4 3.3 3.3
hours in existing gas fired fuels increased due to an
1.2 1.2 assets, and increased 1.5 1.5 increase in the use of gas
1.0 1.0 0.6 0.6
N/AN/A
0 0
electricity
0 0 consumption. 0 by customers.
0
0 0
201720172024 2025
2024 20252030 2040
2030 2040 201720172024 2025
2024 20252030 2040
2030 2040 201720172024 2025
2024 20252030 2040
2030 2040 201720172024 2025
2024 20252030 2040
2030 2040
BaseBase
year year BaseBase
year year BaseBase
year year BaseBase
year year
Rest of Scope
Electricity
Rest sales
of 3(Scope
Scope 3 3 cat. 3d)1 Rest of Scope 3
Sold fossil fuels (Scope 3 cat. 11) 11)
MtCO
MtCO
2
e 2e MtCO e eSold fossil fuels (Scope 3 cat.MtCO
MtCO 2 2
MtCO
e e 2 2
MtCO
MtCO
2
e 2e
20 20 Electricity
20 2019.1 19.1 sales
Electricity (Scope
sales 3 cat.
(Scope 3d)20
3 cat. 3d)20 20 20
Own operations
Own (Scope
operations 1 and
(Scope 2) 2)
1 and
15.1 15.1
15 15 15 15 15 15 15 15
12.712.7
10 10 10 10
–34% 11.011.0
10.210.2 +2%
10 10 10 10
6.9 6.9 6.9 6.9 Emissions from the rest
Emissions from electricity 6.1 6.1 of Scope 3 increased due
4.6 4.6 5.3 5.3 sales
5 5 5 5 5 5decreased significantly 5 5 4.2 4.2
4.3 4.3 to higher upstream gas
3.3 3.3
3.4 3.4 3.3 3.3 due to increasing fossil-free emissions, partly offset
1.2 1.2 1.0 1.0 electricity sales in Germany 1.5 1.5 0.6 0.6 by a decrease in smaller
N/AN/A
0 0 0 0 and
0 the
0 Netherlands. 0 0 Scope 3 categories.
201720172024 2024
2025
20252030
2030
2040
2040 201720172024 2024
2025
20252030
2030
2040
2040 201720172024 2024
202520252030
2030
2040
2040 201720172024 2024
202520252030
2030
2040
2040
BaseBase
year year BaseBase
year year BaseBase
year year BaseBase
year year
Hollandse Kust Zuid 1. Intensity target converted to resulting absolute emissions, this is thus not a formal target. The formal target is found on page 90.
offshore wind farm Rest
Rest
of Scope
of Scope
3 3 A breakdown of all emissions per scope are found on page 93. For accounting policies, see pages 127–128.
Sold
Sold
fossil
fossil
fuels
fuels
(Scope
(Scope
3 cat.
3 cat.
11) 11)
Electricity
Electricity
sales
sales
(Scope
(Scope
3 cat.
3 cat.
3d)3d)
Own
Own
operations
operations
(Scope
(Scope
1 and
1 and
2) 2)
Vattenfall Annual and Sustainability Report 2025 91
Sustainability Statement / Environment
E1 Climate change, cont.
Metrics Table 8. Consumption and production of electricity and heat,
Consumption and production of electricity and heat consolidated according to the GHG Protocol (E1-5)
Vattenfall’s consumption and production of electricity and heat
are presented in Table 8. Our consumption increased in 2025 2024 2025
due to an overall increase in our generation. For our electricity
Total energy consumption, TWh 135.6 143.1
generation, we increased our fossil-free generation from hydro,
Total from renewable sources 4.3 3.7
nuclear, and wind. Our heat production stayed relatively stable.
Methodologies and significant assumptions behind the – of which biomass, waste (biogenic) 3.1 2.7
metrics, including the limitations of the methodologies used – of which electricity, heat, and steam (renewable) 0.91 0.84
are explained in the Sustainability notes under accounting – of which self-generated, non-fuel renewable energy 0.20 0.15
policies for E1 climate change f–g (see page 127). Share of renewable sources in total consumption, % 3.1 2.6
Energy from uranium1 115.7 122.7
GHG emissions Share of nuclear sources in total consumption, % 85.3 85.8
Our GHG emissions are presented per SBTi target and per Total from fossil sources 15.6 16.6
emission scope in Table 9 on page 93. Explanations for any – of which gas 14.5 15.4
changes during the reporting year are described in Figure 6
– of which waste non-biogenic 0.87 0.81
on page 91.
– of which other fuels, including oil 0.08 0.07
Methodologies and significant assumptions behind the
– of which electricity, heat, and steam (non-renewable) 0.10 0.34
metrics, including the limitations of the methodologies used
are explained in the Sustainability notes under accounting Share of fossil sources in total consumption, % 11.5 11.6
policies for E1 climate change a–e (see page 127). Total energy consumption per net revenue, MWh/million SEK2 552.0 609.1
Total electricity generation, TWh 93.0 98.3
GHG removals and GHG mitigation projects Total from renewable sources 48.4 50.9
We plan to use GHG removals exclusively to abate residual
– of which hydropower (excluding pumped storage)3 31.1 33.5
emissions. Any future use of carbon removals will meet high
– of which wind power 17.1 17.2
standards of credibility and be approved by the SBTi. Perma-
nence of removed carbon and transparency of the applied – of which solar power 0.02 0.10
methods are key principles guiding our requirements for carbon – of which biomass and waste (biogenic) 0.18 0.12
removals. Nuclear 37.9 40.2
Vattenfall does not have any GHG removals or GHG storage Fossil sources (including non-biogenic waste) 6.8 7.1
between 2017 and 2025. Carbon compensation is used to vol- Electricity delivered from storage3 3.5 3.8
untary offset emissions linked to products and services, see Total heat production, TWh 4.9 4.5
Table 9 on page 93 under E1-7. The main methodologies Renewable sources 2.8 2.5
applied are ACM0001 (large‑scale grid-connected renewable Fossil sources (including non-biogenic waste) 2.1 2.0
electricity generation) and ACM0002 (renewable energy-based
electricity generation), both widely used under the UN Clean 1. This is the total energy consumption from uranium at our nuclear plants and the nuclear produced electricity consumption
at other Vattenfall assets.
Development Mechanism for certified emission reductions.
2. The net revenue is equal to Vattenfall’s turnover as reported in our EU taxonomy disclosures (2025: 234,915 million SEK,
Methodologies and significant assumptions behind the
2024: 245.570 million SEK), see more on 2025 numbers on pages 84 and 133–140. Our total energy consumption in MWh
metrics, including the limitations of the methodologies used is 143,084,241.
are explained in the Sustainability notes under accounting 3. Electricity generation from pumped storage (hydropower) is reported separately under “Electricity delivered from storage”.
policies for E1 climate change h (see page 127).
The metrics reported on are not validated by an external body
other than Vattenfall’s assurance provider.
Tuggen hydropower plant
Vattenfall Annual and Sustainability Report 2025 92
Sustainability Statement / Environment
E1 Climate change, cont.
Table 9. GHG emissions and targets overview, consolidated according to the GHG Protocol (E1-6 and E1-7)
Retrospective Milestones and target years Retrospective Milestones and target years
E1-6 Gross Scopes 1, 2, and 3 and Total GHG Annual % target/ E1-6 Gross Scopes 1, 2, and 3 and Total GHG Annual % target/
emissions1 2017 2024 2025 2024–2025 (%) 2030 2040 Base year 2 emissions1 2017 2024 2025 2024–2025 (%) 2030 2040 Base year 2
Emission reduction targets Total GHG emissions
approved by SBTi
Total GHG emissions (location-based),
Scope 1 and 2 (market-based) intensity, MtCO2e 52.9 24.6 23.2 –5.7
gCO2e/kWh 110.4 33.7 33.0 –2.0 25.4 9.1 5.9%
Total GHG emissions (market-based),
Scope 1 and Scope 3 Sold electricity MtCO2e 52.9 24.6 23.2 –5.7 18.2 ~4.910
intensity, gCO2e/kWh3 199.1 66.6 48.3 –27.5 43.7 9.1 6.0%
Total GHG emissions per net revenue
Scope 3 – Use of sold products for sold (location-based), tCO2e/million SEK 367 100 99 –1
fossil fuels, MtCO2e 15.1 10.2 11.0 +7.8 6.9 1.5 4.2%
Total GHG emissions per net revenue
Rest of Scope 3, MtCO2e 6.1 4.2 4.3 +2.4 0.6 4.2% (market-based), tCO2e/million SEK 367 100 99 –1
Scope 1 Biogenic emissions, MtCO2e (biogenic)8
Gross Scope 1 GHG emissions, MtCO2e 9 12.6 3.3 3.4 +2.9 3.34 1.24 5.7% Biogenic Scope 1 1.1 1.3 1.1 –15.4
Percentage of Scope 1 Biogenic Scope 2 (location-based) 0.1 0.1 0.1 0.0
GHG emissions from regulated emission Biogenic Scope 3 0.3 0.1 0.2 +46.7
trading schemes, % 99.8 99.8 99.8 0.0
E1-7 GHG mitigation projects financed through
Scope 2, MtCO2e carbon credits
Gross location-based Scope 2 Carbon credits cancelled in the reporting
GHG emissions9 0.040 0.032 0.027 –15.6 year, MtCO2e N/A 0.5 0.6
Gross market-based Scope 2 Share from reduction projects, % N/A 100 100
GHG emissions5, 9 0.040 0.027 0.031 +16.6
Recognised quality standard
– Gold Standard, % N/A 100 91.6
Scope 3, MtCO2e6
Recognised quality standard – VERRA, % N/A 0 8.4
Total Gross indirect Scope 3 Share from projects within the EU, % N/A 0 0
emissions 40.3 21.3 19.8 –7.0
Share of carbon credits that qualify
Category 1 – Purchased goods as corresponding adjustments, % N/A 0 0
and services 0.5 0.3 0.2 –41.5
Carbon credits planned to be cancelled
Category 2 – Capital goods 0.4 0.8 0.8 +1.0 in the future – Amount until 2028 N/A 0.1 0.6
Category 3 – Fuel and energy-related
activities 23.3 9.5 7.3 –23.0 1. All Scope 1, 2, and 3 emission figures reported in this table do not include any removals, or any purchased, sold or transferred carbon credits
– of which emissions of upstream fuels 4.3 2.6 2.8 +7.5 or GHG allowances. The joint ventures which are controlled or operated by Vattenfall are included under our science-based targets.
– of which emissions of sold electricity4 19.1 6.9 4.6 –34.3 5.3 1.6 5.6% 2. Average annual decrease between 2017–2030. SBTi target methodology means Vattenfall’s average annual decrease changes over time.
Category 5 – Waste generated 3. The emission intensity figures include our Scope 1 and Scope 3 emissions from sold electricity divided by our total electricity production and
in operations 0.168 0.023 0.039 +69.6 electricity sales.
Category 6 – Business travel 0.015 0.013 0.007 –42.6 4. Intensity target converted to resulting absolute emissions and is not a formal target.
5. Contractual instruments used for the purchases of electricity includes the share of Guarantees of Origin in total electricity purchases. In 2025,
Category 11 – Use of sold products 15.8 10.6 11.4 +7.9
this value was 71 percent out of which 0 percent was unbundled.
– of which sold fossil fuels 15.1 10.2 11.0 +7.8 6.9 1.5 4.2%
6. 9 6 percent of Scope 3 emissions are calculated based on primary data.
– of which sold products 0.6 0.4 0.4 +8.5 7. Emissions from remaining Scope 3 categories: categories 4, 7, 8, 12, and 15.
Minor Scope 3 categories7 0.133 0.109 0.061 –44.8 8. Biogenic emissions from Vattenfall’s own assets, electricity consumption, electricity sales and other Scope 3 categories such as construction
related emissions. Emissions included in climate targets as relevant by each scope and category.
9. All of our investees are accounted for under Vattenfall’s own emissions. There are no emissions from investees that can be reported separately outside
of our boundary.
10. Target level equals remaining emissions from each target 2040, to be neutralised through removals as required by SBTi. Updated compared to 2024.
Vattenfall Annual and Sustainability Report 2025 93
Sustainability Statement / Environment
E1 Climate change, cont.
Key actions see Table 10. In 2025, Vattenfall allocated 26 billion SEK to More information on our larger investments and ongoing and ties; based on historical taxonomy alignment, we assume it will
During 2025 a number of actions were taken which directly or taxonomy-aligned capex, supporting implementation of the planned projects are specified in the investment plan (see page be around 80 percent over the coming five years. These invest-
indirectly reduce GHG emissions, contributing to the transition climate transition plan (see pages 136–137). This is indicated 20–21), where it is also specified that Vattenfall plans to invest ments will f urther support the implementation of the climate
of the energy system and the wider decarbonisation of society, in Table 10 under the heading "Relevant EU taxonomy code". 165 billion SEK (capex) over the next five years. This year, 85 transition plan, for example through development and growth of
percent of our capex was invested in taxonomy‑aligned activi- wind power generation capacity and electricity grid projects.
Table 10. Key actions in 2025 and future actions
Relevant
Key action (lever/focus area) Description Scope Expected outcome1 Time horizon EU taxonomy code4
Investments in bioenergy, • Commissioned biofuel powered expansion of combined heat and power plant Lignum in Sweden. Sweden, the Netherlands, • Reduced Scope 1 emissions 2025–2030 4.15
geothermal, and heat pumps • Achieved 100 percent renewable and recycled fuel for district heating in Sweden. and the UK own opera- • Reduced Scope 3 cat. 11 (indirect) 4.20
(Reduce fossil emissions from tions and customers emissions connecting customers 4.24
natural gas and waste to heat) • Construction has started on 120 MW peak load natural gas fuelled heat plant de Sleutel, the Netherlands, which will 4.25
to solutions with low emissions
enable waste heat from Rotterdam Port to supply ~90 percent of the Leiden region. Expected to be online in 2026. 4.11
• Final investment decision taken for a heat grid extension in Edinburgh, the UK, which will supply 620 homes with
district heating. Expected completion in 2026.
Take action on supply chain • Signed an agreement for delivery of 120 tonnes of fossil-free steel for the world’s first fossil-free dam gate, All markets • Scope 3 cat. 3 reducing 2025–2030 Not applicable
decarbonisation reducing the carbon footprint by ~200 tCO2e5. emissions in supply chains
(Reduce supply chain emissions) • Signed an agreement with Cemvision to supply near-zero cement in projects across Europe starting in 2028.
The cement reduces emissions with up to 95 percent 6.
• Signed four framework agreements with solar PV suppliers and one with a solar inverter supplier including s pecific
GHG emission reduction targets and requirement on Environmental Product Declarations.
• Partial use of scrap-based low emission steel for 56 of 112 turbines for Nordlicht I in Germany, reducing emissions
by 66 percent 3.
Decarbonise energy sales • Increased fossil-free electricity sales by five percent during 2025. All Vattenfall markets • Reduced specific Scope 1 emissions 2025–2030 4.16
(Increase fossil-free electricity sales, • Expanded heat pump installation network in Germany. • Reduced Scope 3 cat. 3d emissions
Reduce emissions from sold fossil fuels) • Launched new electricity contract in the Netherlands that encourages the use of electricity when • Reduced Scope 42 emissions in the
fossil-free generation is high. energy system
• Ambition of 100 percent fossil-free sales in 2030 in the Netherlands and 2040 in Germany.
Investments in fossil-free generation • Commissioned Bruzaholm, a 138 MW wind farm in Sweden with a combined battery storage of 38 MW. Own operations, • Reduced specific emissions Scope 1 2025–2030 4.1
(Securing a fossil-free energy supply) • Commissioned Tützpatz, a 76 MW agri-PV park in Germany, combining power generation with arable farming and all Vattenfall markets • Reduced Scope 1 (indirect) 4.3
animal husbandry and covering 93 hectares. • Reduced Scope 3 category 3d 4.5
• Reduced emissions in the energy 4.28
• Final investment decision taken for Clashindarroch II, a 63 MW wind farm in the UK. First power is expected in 2027.
system scope 42
• Final investment decision taken for Nordlicht I and II windfarms in Germany, with 980 and 639 MW capacity
respectively. First power is expected in 2028.
• Final investment decision taken for a new turbine at Harsprånget hydropower plant, Sweden.
Strengthen electricity grids • Ongoing construction of power lines Hedenlunda-Öxelösund and Öby-Ängsberg, Sweden, the Netherlands • Scope 42, enabling decarbonisation 2025–2030 4.9
and investing in storage where the former supports SSAB’s transition from fossil blast furnace to electric arc furnace of customers 4.10
(Connecting and optimising which enables fossil-free steel production.
the energy system) • Over 250 MW wind and solar power connected to the grid in 2025 from over 4,000 installations.
• Signed a flexibility contract of 100 MW battery storage capacity in the Netherlands, the contract will s tart in 2028.
Action taken in 2025 Future action
1. The results of emission reductions for individual actions are not reported separately in addition to the annual reporting of emission outcome linked to each target area. This is due to uncertainties in the actual emission reductions for projects that have a direct or indirect reduction over several emission scopes.
2. Scope 4 are emission reductions happening outside of the reporting boundaries for the company, these are not counted towards internally set targets.
3. Compared to heavy steel plates made via a conventional steelmaking route.
4. Amount linked to eligible, aligned, and non-aligned activities covered by the EU taxonomy. For our full EU taxonomy disclosures, see pages 84 and 133–140.
5. HYBRIT steel compared to conventional steel.
6. Compared to traditional Portland cement, which emits approximately 850 kgCO2e per tonne.
Vattenfall Annual and Sustainability Report 2025 94
Sustainability Statement / Environment
E1 Climate change, cont.
Other ongoing measures
In addition to actions presented in Table 10, Vattenfall is
implementing a wide range of other measures across the
b usiness. These measures further support the implemen
tation of the c limate transition plan and the achievement
of the climate t argets. Examples include:
Take action on supply chain decarbonisation
• Decision to use low-emission steel in construction of a peak
and backup heat production asset in the heat source
A msterdam project
• Decision to use low-emission concrete for the extension of the
final repository for short-lived radioactive waste in Forsmark
• Replacement of stainless steel with glass fibre reinforced
plastic that has a lower carbon footprint in the bottom outlet
tunnel of M arkersbach pumped storage plant
• Implementation of reduced bidding prices for suppliers
f ulfilling climate and circularity criteria in projects conducted
in Business Area Distribution
• Incorporating life cycle assessments/embodied carbon
assessments as part of the design process in Business Unit
Heat UK.
Towards fossil-free heat production
• Increased use of hydrotreated vegetable oil (HVO), a lower
emission biofuel, in the Bristol heat plant
• Continued implementation of differentiated gate fees for
fossil waste in the Uppsala waste-to-energy plant (the Fossil
Eye project)
• Launched industry collaboration for e-boilers in
the Netherlands.
Towards fossil free transports
• Ringhals' own vehicle fleet to be electrified by the end of 2026
• Business Area Distribution and SKB to phase out fossil fuels
for s
ervice cars and machinery by 2030
• Introduced requirement on electrified or biofuel transport
for Nordic facility management suppliers.
Increasing energy efficiency
• Enhancing energy efficiency through energy audits and
improvement programmes at main operational heat assets
in the UK
• Reduction in electricity, cooling water, and heating energy
consumption through adapted operation of cooling water
s ystems in German heat plants (savings of 2,595 MWh).
Forsmark nuclear power plant
Vattenfall Annual and Sustainability Report 2025 95
Sustainability Statement / Environment
E4 Biodiversity and ecosystems
Impacts, risks, and opportunities
Material IROs1 Type
internal functional instructions that define requirements for the fications, supplier evaluations, and audits during procurement.
Impact on biodiversity driven by climate Negative Impact on threatened species Negative business areas on how to manage relevant topics. The Environmental Policy further stipulates that biodiversity
change impact impact
Value chain: own operations To address material impacts related to land use change, aspects and management shall be considered in the evaluation
Value chain: upstream and own operations (actual) (actual)
freshwater use change, and sea use change, the Environmental of suppliers and technologies, using a risk-based approach.
Vattenfall has operations that have a negative impact on Policy and the EMS emphasise adherence to the precautionary The Code of Conduct for Suppliers and Partners sets require-
The GHG emissions throughout our value chain have an indirect principle and that significant impacts are considered in ments that suppliers and partners should cease, avoid, prevent,
long-term negative impact on habitats and ecosystems. threatened species, including certain species of birds, bats,
and fish. Vattenfall’s operations, project siting, and planning design. They and minimise potential adverse impacts on the environment
also state that biodiversity management shall be conducted in and ecosystems caused as a result of their operations. Where
accordance with the mitigation hierarchy and stipulate that negative environmental impacts cannot fully be ceased,
Land use, freshwater use, and Negative More information on how biodiversity-related impacts, risks, where impacts cannot be fully avoided or mitigated, potential avoided, prevented or minimised, compensation and restora-
sea use change impact compensation and restoration measures shall be considered. tion measures should be implemented where appropriate. Sup-
(actual)
and opportunities (IROs) were identified and on consultations
Value chain: upstream and own operations The EMS also focuses on stakeholder engagement and pliers and partners are encouraged to conduct business activi-
with affected stakeholders is available in the accounting
policies for E4 biodiversity and ecosystems, section c and d of research and development to build knowledge and reduce ties that promote positive impacts on biodiversity, ecosystems,
Vattenfall has a negative impact on biodiversity and
the Sustainability notes (pages 130–131). impacts. In areas where Vattenfall has projects and operations, and the environment.
e cosystems through changes in terrestrial, aquatic, and
opportunities to enhance biodiversity and positively impact The Environmental Policy and EMS are aligned with global
marine environments when land is transformed for energy
IRO interaction with strategy and business model local species and ecosystems are also to be assessed. The goals and agreements, such as the United Nations’ Sustainable
infrastructure projects. We also have an ecological footprint
Biodiversity-related IROs in Vattenfall’s operations are highly EMS stipulates that the long-term viability of regional popula- Development Goals (12, 13, 14, 15 and 17). Related environmental
in our supply chain, for example connected to fuel sourcing
site-specific, with considerations often addressed at particular tions of species shall not be endangered by Vattenfall’s opera- topics, such as climate, are detailed in the respective chapters.
and raw material extraction (materials and minerals).
locations or projects. tions, including maintenance and construction projects. High Pollution is covered in the non-material section (see page 106).
Despite the site-specific nature of these issues, their cumula- environmental values 2 surrounding sites must be documented, As there is no corporate policy regarding deforestation, sus-
tive impact is significant at an overarching strategic level. Bio and precautionary measures taken to prevent harmful impacts tainable forest management is instead included in several activ-
Fragmentation of rivers and landscape Negative diversity considerations are integral to Vattenfall’s strategy, from operations. Sustainable resource management and effi- ities. For example, a forest management plan has been devel-
impact
Value chain: own operations influencing long-term planning and operational decisions. ciency shall be considered in all operations, including use of oped for the spent nuclear fuel repository site in Forsmark,
(actual)
A detailed list of material sites can be found in the Sustaina- energy, fuel, raw materials, chemicals, waste, land, and water. which includes measures such as preserving habitats for the
Our operations cause fragmentation of rivers and landscapes bility notes E4 Biodiversity and ecosystems section b (page The EMS requires controlling pathways to prevent the spread protected lady’s slipper orchid through designated clearance
due to physical barriers such as hydropower, wind turbines 129–130). These are defined as sites under Vattenfall’s control of invasive species and reduce potential negative impacts on and maintenance activities. Forest management is also a part
and distributions lines leading to disrupted habitat connectivity where compensatory measures have been needed to address natural flora and fauna. It also includes a commitment not to of managing power line corridors. Maintenance plans of the
and ecosystem functioning. residual impacts on the values of a nearby protected area as cause significant harm to the designated features and conser- power line corridors have then been tailored so hotspots with
part of the permit. The material site assessment shows that vation objectives of existing or proposed European Natura high scores in the natural value assessment receive more
none of the sites has a shown material negative impact leading 2000 or Ramsar sites. This commitment considers potential attention. The biomass used in Vattenfall’s power plants must
to deterioration of habitats or species for which the protected direct impacts within the site of Vattenfall’s own operations and be sustainably produced in accordance with the Renewable
Project execution risks related
area has been designated. This will however be reassessed potential indirect impacts in the surrounding area. Energy Directive ((EU) 2023/2413), known as RED III) and
to biodiversity Risk
during upcoming permit reviews for hydropower assets as part Social consequences of biodiversity and ecosystem-related national legislation.
Value chain: own operations
of the national implementation of the Water Framework Direc- impacts are also covered by the Environmental Policy and must
tive (2000/60/EC). be assessed for Vattenfall’s operations, project siting, and plan-
Management of biodiversity impacts is often an integral part
ning design. Engagement and consultation with stakeholders
of environmental permits. Therefore, risks could arise for
Vattenfall linked to new projects and permit updates with
Policies and governance occur, for example, as part of Environmental Impact Assess-
p otential consequences such as delays or stopped projects
Senior management responsibilities, policies, and management ments, when considering potential compensation and restora-
and changes in operating conditions for existing assets. systems which govern environmental topics (see page 83) also tion measures, and when implementing biodiversity projects in
O verall this could lead to lost opportunities or increasing costs. apply to biodiversity. The Environmental Policy and Environmen- communities.
tal Management System (EMS) set the overarching principles Environmental requirements – including the assessment of
on biodiversity, including Vattenfall’s material IROs and depend- resources, manufacturing, transport, and contractor manage-
1. For more information see page 82.
encies on biodiversity and ecosystems. Whilst the Environmen- ment – are also included in the Environmental Policy, with the
2. High environmental values could consist of the presence of red listed
species, rare biotopes and/or protected areas/items. tal Policy sets out Vattenfall’s overall direction, the EMS includes intention that these become an integrated part of tender speci-
Vattenfall Annual and Sustainability Report 2025 96
Sustainability Statement / Environment
E4 Biodiversity and ecosystems, cont.
Strategy – biodiversity transition plan Figure 7. Visualisation and timeline of our biodiversity transition plan
Resilience to biodiversity-related risks
Vattenfall has conducted a resilience analysis to better under-
stand the relationship between our strategy and business Committing to a nature-inclusive energy transition means The biodiversity transition plan is based a three-level
model and our IROs. The analysis informs our future actions, that Vattenfall focuses on taking action and setting targets steering where Vattenfall works accordingly
biodiversity transition plan, and adaptation efforts, see E4 Bio within the following three strategic areas:
diversity and ecosystems section c in the Sustainability notes Direct operation
(page 130) for more information. Efforts connected to our direct operations is the
Biodiversity transition plan 1 2 3 foundation of the Biodiversity transition plan and the
p riority is to reduce biodiversity impacts from direct Direct operation
Vattenfall is committed to a nature-inclusive energy transition. Mitigation, Innovation Accelerate operations, both concerning new projects and existing
Through our Biodiversity transition plan 2030, we aim to con- restoration and biodiversity partnership and sites. The aim is also to enhance biodiversity at existing
and nature-based Research & c ollaboration
tribute to the Kunming-Montreal Global Biodiversity Framework solutions D evelopment sites to create additional biodiversity values. Reducing
(GBF) and its efforts to halt and reverse biodiversity loss by climate change pressure on biodiversity by delivering Upstream and
2030. Our efforts focus on minimising impacts and enhancing on Scope 1 climate targets is also an important action downstream
biodiversity while also addressing climate change. This builds for direct operations (see page 90).
on a long-term work with defined milestones towards 2030
(see Figure 7). Upstream and downstream Ecosystem
As a result of the 2022 Biodiversity Footprint Assess- and
How our biodiversity transition plan contributes to ment, the main focus of efforts until 2030 will be on society
international agreements and targets b iomass and uranium sourcing, raw material extraction,
With the targets and actions that we define in our transition plan we aim to contrib ute and contractor requirements for the procurement of
to following targets in the Kunming-M ontreal Biodiversity Framework: goods and services. The reduction of GHG emissions in
line with our net zero target is an important contribution Contributing to the
Target 1 Plan and manage all areas to reduce biodiversity loss to reducing impacts along the value chain. Kumming-Montreal Global
Target 2 Restore 30 percent of all degraded ecosystems Biodiversity Framework
Target 4 Halt species extinction, protect genetic d
iversity, and manage Ecosystem and society
human-wildlife c onflicts In addition to mitigating direct and indirect negative
Target 8 Minimise the impacts of climate change on biodiversity and build impacts, Vattenfall strives to enhance biodiversity within
resilience our sphere of influence by implementing actions that
Target 15 Businesses assess, disclose, and reduce biod iversity-related risks protect valuable habitats and strengthen existing bio
and negative impacts diversity values on our owned land. We aim to further
establish new partnerships to improve our use of nature-
The targets and actions will also contribute specifically to pollinating insects, migrating
based solutions and broader ecosystem improvement.
species in rivers, and biodiversity enhancement in marine environments like seabeds,
which is closely linked to objectives in EU Biodiversity Strategy for 2030.
2020 2021 2022 2023 2024 2025–2029 2030
Vattenfall joins Science Based Vattenfall is the first energy Decision to invest SEK 65 Vattenfall’s CEO joins Launch of the Biodiversity Target year and
Target for Nature’s Corporate company to complete a full- million in a voluntary bio- Champions for Nature within the Transition Plan, including evaluation of
Engagement Programme scale biodiversity footprint diversity programme World Economic Forum mid-term reviews and updates achievements of
assessment using the Global for hydropower the biodiversity
Founding member of CLIMB Biodiversity Score (GBS) Decision to extend our wind Initiate projects to further
transition plan
– a tool to assess nature in The first version of CLIMB research programme until develop nature-based
Sweden and the Nordics is publicly available 2029 solutions
Founding member of Offshore Further assessment of
Coalition for Energy and Nature supply chain impacts
(OCEaN)
Vattenfall Annual and Sustainability Report 2025 97
Sustainability Statement / Environment
E4 Biodiversity and ecosystems, cont.
Targets Table 11. Biodiversity targets
To deliver on Vattenfall’s Biodiversity transition plan and to meet Base year and
policy objectives, biodiversity targets have been developed base year Target year and Contribution to Mitigation hierarchy
Target 1
Scope value target value 2023 2024 2025 GBF2 target and offsets
across our business areas. These targets are designed to
address the identified material IROs for each Business Area’s Implement measures and management plans in 100 percent identified Distribution 2020 2026 48% 61% 85% 4
operations, see Table 11. More information on the methodolo- biodiversity hotspots within the regional power line corridors (250 km) 0% of the 100% of the
gies and assumptions used for the targets can be found in the by 2026 hotspots hotspots
E4 Biodiversity and ecosystems section a in the Sustainability
Implement biodiversity measures at 20 transformer stations by 2030 Distribution 2023 2030 N/A 4 stations 1 station 4
notes on page 129. 0 stations 20 stations
Restoration,
Progress made during the reporting period Invest SEK 65 million in a voluntary biodiversity programme for Hydro 2024 2028 N/A MSEK 6,7 MSEK 17,8 2 enhancement,
Progress was made on all targets in 2025. Measures in the hydro power by 2028. Nordics SEK 0 MSEK 65 rehabilitation.
regional power line corridors were implemented as planned, The programme focuses on research and concrete measures Offsets are not
additional to legal requirements used
reaching the target level of 85 percent. Implementation of biodi-
versity measures at transformer stations progressed slower Implement five new innovative solutions improving biodiversity Hydro 2025 2030 N/A N/A 5 2
than expected; we implemented measures at one station while in relevant hydropower effected river reaches Nordics 0 solutions 5 solutions
the goal was five stations. The plan is to accelerate implemen-
tation in 2026, and the 2030 target remains unchanged. Invest EUR 300,000 annually in a voluntary biodiversity R&D Wind 2025 2029 N/A N/A EUR 274,400 2
The biodiversity programme within hydropower continued programme (2025–2029) EUR 0 EUR 300,000
according to plan. Investments have matched the annual plan, 1. Ecological thresholds have not been relevant when setting the targets.
allowing us to deploy various innovative solutions in several 2. The Kunming-Montreal Global Biodiversity Framework.
rivers in Sweden. In 2025, we constructed two stretches of
natural shoreline protection in Tuggens älvmagasin (down-
stream of Lycksele, Sweden), installed two large floating islands
upstream of Älvkarleby, Sweden, as well as built and tested a
fish diversion barrier with dancing rods in Stångån and Stäm-
memad, Sweden. We also placed 30 nesting platforms in the
Swedish Ume River, Dalälven, and Lule River, and set up three
floating shallow water areas in Gardiken’s regulating reservoir
in the Ume River.
Significant progress was also made in biodiversity R&D
related to wind power. Although spending was slightly less than
the annual budget of EUR 300,000, all projects advanced as
planned. Two projects reported in 2025 were:
• WindReef, a PhD project developing a Life Cycle Impact
Assessment (LCIA) method that incorporates impacts on
marine biodiversity and social acceptance related to offshore
wind farm decommissioning
• A trial of a camera and AI based seabird monitoring system at
the Aberdeen offshore wind farm, conducted in collaboration
with Spoor.
Vattenfall Annual and Sustainability Report 2025 98
Sustainability Statement / Environment
E4 Biodiversity and ecosystems, cont.
Metrics Table 12. Sites in or near biodiversity sensitive areas
Direct impact drivers of biodiversity loss
2024 2025
Sites located in or near biodiversity sensitive areas have been
No. of sites within No. of sites within No. of sites within No. of sites within
mapped to assess Vattenfall’s performance and to evaluate Market No. of sites 1 km from BSA BSA 1 km from BSA BSA
whether there are any negative impact on these areas (material
sites). Additionally, we track our annual increase in land and sea Denmark 16 13 3 13 3
use associated with new projects.
Finland 4 2 0 2 0
Table 12 provides an overview of the number of sites situated
within a one kilometre distance from biodiversity-s ensitive Germany 21 15 8 15 8
areas (BSA). Sweden stands out with the highest number of
sites close to BSAs, followed by Netherlands and Germany. This Netherlands 50 33 3 32 3
is partly because Vattenfall has the most sites in Sweden.
Sweden 137 53 2 53 2
Table 13 shows the number of kilometres of distribution lines
that pass through protected areas (Swedish nature reserves, United Kingdom 23 8 3 8 3
national parks, and Natura 2000 sites) and transformer stations
overlapping or within a one kilometre distance from protected
areas.
The total length of our network has slightly increased since Table 13. Distribution lines and transformer stations in or near biodiversity sensitive areas
last year, and the share of regional grid infrastructure within pro-
tected areas has also risen. This is mainly due to the inclusion 2024 2025
of an additional subsidiary-owned network in this year’s assess- Length in Percentage in Length in Percentage in
ment, combined with ongoing grid expansion in Sweden. A con- protected areas protected areas protected areas protected areas
Network type1 Total length (km) (km) (%) Total length (km) (km) (%)
tinued shift from overhead lines to underground cables is a key
trend, expected to gradually reduce land use demands and Local
51,946 1,317 2.70% 53,761 1,404 2.60%
long‑term landscape impact. network
The total number of substations has increased compared
Regional
with the previous year, primarily due to the inclusion of a smaller 15,346 728 4.90% 15,483 857 5.50%
network
subsidiary operating a distribution network in this year’s
assessment. Last year’s figure regarding stations located within
2024 2025
1 km of protected areas, previously reported as 239, has been
Total transformer Stations within 1 km Stations within Total transformer Stations within 1 km Stations within
corrected to 169 due to a discovered calculation error. Vattenfall stations1 of protected areas protected areas stations2 of protected areas protected areas
also operates a smaller distribution network in the UK and east-
ern Sweden, which is not included in the assessment due to 764 169 13 794 170 13
insufficient data, this will be further investigated in next year’s 1. Until December 2025, Vattenfall also operated a smaller distribution network in the UK, which has not been included in the assessment due to lack of data.
reporting.
To track how our biodiversity footprint evolves over time, we
also monitor land and sea use change annually, see Table 14. In
2025, we did not have any construction of offshore windfarms. Table 14. Land and sea use change
Land use change in 2025 occurred mainly within our Distribu-
tion operations. However, within Distribution, the total extent of
overhead lines in forest decreased due to extensive replace- Type of change 2024 2025
ment of overhead lines with underground cables. Wind and Area of nature oriented land use
solar contributed less than in the previous year, as fewer 128 275
change from new projects (ha)
projects were in expansion phases.
Area of nature oriented sea use
No data 0
change from new projects (ha)
Vattenfall Annual and Sustainability Report 2025 99
Sustainability Statement / Environment
E4 Biodiversity and ecosystems, cont.
Threatened species Project and site conditions dictate which species’ metrics Key actions Vattenfall aims to develop biodiversity solutions that create syn-
Vattenfall manages impact on species as a part of new projects, that are collected. For new projects and in existing operations, At Vattenfall we see it as an opportunity to positively support ergies across multiple sustainability areas and, in doing so, gen-
existing sites, and in voluntary projects (including research and Vattenfall adheres to legislation and permit requirements. In cer- biodiversity through the different biodiversity projects we con- erate value for local communities, people, and society. This
development). Vattenfall continuously works with biotope resto- tain cases, when required, species protection assessments are duct. Widespread implementation of nature-based solutions approach can have positive impacts on the areas in which we
ration and species protection, including testing of how new conducted, which include investigations of population size, range and ecosystem restoration can strengthen biodiversity whilst operate by for example creating job opportunities locally or
technology can be used to mitigate impacts on species. within specific ecosystems, and extinction risk. Species moni- simultaneously enhancing carbon sequestration and address- improve ecosystem system services (for example recreation).
Table 15 shows the number of unique red-listed species (not toring is also conducted as part of our research and development ing other social challenges. These actions also contribute to To achieve this, a close collaboration with local stakeholder is
observations) within 50 km of Vattenfall’s sites, divided by mar- activities. reducing broader environmental and operational risks, support- needed. Vattenfall also has activities in northern Sweden where
ket and categorised by their level of risk according to the Inter- Table 16 outlines an overview of the species and organism ing a more resilient and sustainable energy system. Vattenfall’s the indigenous Sámi people live. Vattenfall’s approach towards
national Union for Conservation of Nature’s (IUCN) Red List of groups that are in focus within each respective Business Area. investments in biodiversity research and development create the Sámi communities involves striving for early and continuous
Threatened Species. The United Kingdom stands out with the Examples of location-specific species metrics are shown in opportunities as it improves understanding and management engagement with their representatives when they are affected
highest number of red-listed species within 50 km of sites, Table 15, Table 16, and Table 17 below. of biodiversity-related impacts and risks and enable co- by Vattenfall’s plans and activities, read more in chapter S3
including those in the critically endangered, endangered, and Methodologies and significant assumptions behind the met- existence between production of electricity and heat and Affected communities on pages 117–119. Another practice is an
vulnerable categories. Germany and Sweden also have a signifi- rics, including the limitations of the methodologies used are v ulnerable species. internal company network that regularly shares knowledge and
cant number of red-listed species. The data indicates whether explained in the Sustainability notes under accounting policies Key actions in 2025 are outlined in Table 19 on page 101. informs about relevant planned and ongoing activities in Sápmi.
a species is present within 50 km of a site, and Vattenfall’s oper- for E4 Biodiversity and ecosystems (see page 129–131). Evalua- These actions are essential to fulfilling Vattenfall’s Environmen- As an example of a broader industry collaboration to support
ations do not impact all of these species. tion and effectiveness of metrics is explained in section a on tal Policy and strategic objectives related to biodiversity and practices in the marine environment, Vattenfall is a member of
page 129. ecosystems, and they demonstrate how we contribute to the the Offshore Coalition for Energy and Nature. The coalition aims
Kunming–Montreal Global Biodiversity Framework (GBF). No to accelerate offshore wind energy deployment and grid infra-
Table 15. Red-listed species near sites (entity-specific metric) offsets were used for key actions. structure while preserving and restoring marine ecosystems in
2024 2025
European seas.
Critically Critically
Market No. of sites endangered Endangered Vulnerable endangered Endangered Vulnerable
Collaborations
Collaboration with different stakeholders is an integral part of Allocated resources
Denmark 16 11 14 81 11 16 79 Vattenfall’s activities, as demonstrated with the key actions in The key actions have various resources allocated, including
Finland 4 3 6 40 3 6 40 Table 19 on page 101, and it is a way to increase the learning f ull-time equivalent (FTE) costs, resources as part of project
and sharing of best practices and knowledge. development such as investigations, implementation of mitiga-
Germany 21 14 41 86 15 43 90
tion and enhancement measures, consultants, and monitoring,
Netherlands 50 7 16 81 9 21 84 Collaborations include: consulting and software costs, and research and development
Sweden 137 9 20 94 9 26 101 • Local authorities, communities and organisations budgets. There is no significant capex or opex beyond those
included as an integrated part of the project budgets within the
United Kingdom 23 27 33 103 30 40 116 • Universities and research institutions
respective business areas and Staff Functions and these are
• Suppliers and contractors not separately disclosed.
Table 16. Operations and relevant species (entity-specific metric) • Industry networks, associations and biodiversity experts
Business Area Species and organisms
Wind • Marine mammals: Harbour porpoise
• Onshore birds: Golden Eagle, Capercaillie Table 17. Fish monitoring in hydropower plant Stornorrfors, Sweden (entity-specific metric)
• Offshore birds: Black-legged Kittiwake, Guillemot and Razorbill (auks) 2024 2025
• Bats: Nathusius’ Pipistrelle, Common Noctule No. of
• Fish: Atlantic cod No. of No. farmed No. of No. of No. of farmed No. of No. of
Species individuals individuals females males individuals individuals females males
• Seaweed: Sugar kelp
Salmon 8,087 889 3,962 3,800 10,792 1,510 1,295 8,633
Hydropower • European eel
• Freshwater pearl mussel Trout 331 43 274 39 468 39 46 322
• Lesser white-fronted goose AI is used to monitor the effectiveness of the fishway, providing real-time fish monitoring data.
• European crayfish
• Saimaa salmon Table 18. Number of eels that were moved past the hydropower plants in the Göta River, Sweden (entity-specific metric)
Distribution • Pollinators (butterflies and bees)
Species 2023 2024 2025
• Meadow herbs that benefit from traditional m
anagement
• Birds (mainly birds with broad wingspans, owls) Eels 13,085 11,711 11,689
Vattenfall is part of a voluntary project in Sweden to help strengthen the eel population.
Vattenfall Annual and Sustainability Report 2025 100
Sustainability Statement / Environment
E4 Biodiversity and ecosystems, cont.
Table 19. Key actions in 2025 and future actions
Key action Description Scope IRO covered Expected outcome Time horizon
Dancing foam rods to Persuading fish to find their way past hydro power plants successfully has pre- Hydropower, Sweden. • Fragmentation of rivers and Tests in Vattenfall’s laboratory in Älvkarleby showed that Tests were performed in Älvkarleby 2024–2025
guide fish to safely pass sented a challenge for a long time. Grates are the most conventional way of prevent- landscapes salmon smolts – young salmon about 15 cm long migrating and will continue during spring 2026. New tests
hydropower plants ing fish from passing through turbines at power plants also slows down the water, Three test sites: • Impact on threatened species downstream – recognise the “dancing rods” as an obstacle will also be conducted in Linköping in May 2026.
hence, reducing electricity generation. Vattenfall is therefore working on different Älvkarleby (laboratory), • Project execution risks related to and avoid swimming through them. Instead, they follow the
alternative solutions and one of them involves using dancing rods made of water- Linköping, and species line of moving rods, which guides them safely past the
resistant and bio-based cellulose foam to guide the fish in the right direction. Stämmemad power power plant’s water intake. When the solution was tested
Collaboration with Cellufy, the company that develops the bio-based foam material plants (Sweden). at the Linköping power plant, reduced water flows caused
in the rods. by a turbine under repair affected the test conditions,
meaning that additional trials are required to validate the
results.
New fish passage The project aims to restore free migration routes for fish and aligns with the EU Water Vattenfall Nuclear • Fragmentation of rivers and Improved spawning and nursery habitats will enhance Soil sampling to check for contamination
in Forsmark’s Bruk Framework Directive and national environmental goals. Actions include for example Operations in Forsmark, landscapes biodiversity both locally and regionally. The project aims to (summer 2025).
building a 160-meter bypass channel and stone-lined canal, and separating the flow Sweden. • Impact on threatened species benefit species like sea trout, eel, and perch who will bene-
in the fishway from the main flow. The design will be adapted for weak swimming fit from the removal of the migration obstacles. Construction start autumn 2025.
s pecies such as perch. Restoration size:
Collaboration between Sportfiskarna and Forsmark Kraftgrupp. The costs for 800-hectare upstream Project completion by mid-summer 2026.
lanning, contractors, and materials are shared.
p lake system.
Biodiversity hotspot Vattenfall has strengthened the work within its supply chain to address biodiversity Vattenfall Group (Staff • Impact on biodiversity driven by Identified key minerals and materials with the greatest Project period:
assessment for the impacts linked to raw material sourcing. There is a strong link between biodiversity, Functions Environment, climate change potential impact on biodiversity. March–December 2025.
supply chain human rights, and circularity hence an important objective has been to identify the Sustainability, and • Land use, freshwater use and
synergies and c onnect existing efforts. Procurement) sea use change Mapped these minerals and materials to procurement
categories and explored ways to integrate biodiversity
Collaboration with GIST Impact (provider of data and analytics support). considerations into existing procurement processes.
Conducted supplier assessments using the GIST Impact
platform to evaluate biodiversity‑related performance and
data.
Nature-Inclusive Design Aligning with Dutch regulations stating that offshore wind farms should actively enhance Offshore Wind. • Land use, freshwater use and The built features aim to serve both a technical purpose The project, which began in 2021, includes
(NID) in offshore the marine ecosystem, Vattenfall has built features into the Hollandse Kust Zuid wind sea use change and benefit marine biodiversity by offering shelter from plans for monitoring the Nature-Inclusive Design
wind farms farm to support marine life. This includes water replenishment holes in every turbine Hollandse Kust Zuid • Impact on threatened species currents and predators to species, such as Atlantic cod, elements during 2024, 2028, and 2033.
foundation (139 foundations) and rock reefs on the seabed at nine locations. Cameras wind farm, the edible crab, and sculpins. This ongoing monitoring is crucial for validat-
for bird and bats monitoring have also been installed at the site (2024) and Vattenfall is Netherlands The first monitoring shows promising signs and that ing the hypothesis that these designs effectively
trialling a thermal camera-based system for collecting evidence of birds colliding with conditions inside the foundations are fairly similar to benefit cod populations.
offshore wind turbines. outside conditions, and marine species are already making The insights gained from these efforts will
The project is a collaboration with partners such as FØN Energy (C‑Ventus), Waarden- use of these sheltered spaces. inform and refine the future design of the water
burg Ecology, Deltares, Seaward, De Rijke Noordzee, and Wageningen Marine Research. For the monitoring, Vattenfall and its partners have also replenishment holes, ensuring they continue to
Vattenfall is also a part of a multi-party JIP-LIFE partnership and has contributed to the tested underwater video systems (known as BRUV—Baited benefit marine ecosystem while maintaining
funding. More information: https://hollandsekust.vattenfall.nl/en/sealab/ Remote Underwater Video) to document which fish and their essential corrosion protection function.
other mobile fauna visit the area. The trials are helping to
understand how fish behave around these structures.
Multi-use by combining Part of the EU-funded OLAMUR initiative, WIN@Sea explores marine multi-use by Offshore wind. • Land use, freshwater use and Seaweed cultivation, particularly sugar kelp, supports The first seaweed harvest took place in 2024
offshore wind energy c ombining offshore wind energy with sustainable aquaculture. The project integrates sea use change carbon capture and nutrient removal, while mussels and the seaweed product was produced in
with sea weed cultivation seaweed and mussel farming within wind farms as an innovative spatial management Launched at Danish improve water quality. This approach can also reduce 2025 when seaweed snacks were used to pro-
solution that improve environmental conditions. WIN@Sea aims to set a blueprint for Kriegers Flak wind farm operational emissions through shared logistics and mote the multi-use efforts in Vattenfall’s brand
future offshore co-use, benefiting ecosystems and coastal c ommunities. in 2023 and expanded demonstrates how renewable energy sites can deliver campaign.
to Vesterhav Syd wind both fossil-free electricity and sustainable food production. The project is approaching a second growing
The project is a collaboration with partners such as Aarhus University and Kerteminde farm in 2025. season at Vesterhav, with deployment of the
Seafarm. More information: https://group.vattenfall.com/windfarmed seaweed in early October 2025 and expected
harvest around end of April 2026.
Vattenfall Annual and Sustainability Report 2025 101
Sustainability Statement / Environment
E5 Resource use and circular economy
Impacts, risks, and opportunities through life‑cycle‑based resource management. In the evalua-
tion of new projects, resource use is considered across all
Material IROs1 Type Figure 8. Vattenfall’s Circular Economy Framework including ambition and focus areas
stages, from the early business concept through to end‑of‑life.
Scarcity of resources for Resources need to be managed with a high focus on resource
the energy transition Risk efficiency and designing Vattenfall’s assets for a long service Circular sourcing
Value chain: own operations life. Vattenfall strives to source more reused, recycled, and/or Vattenfall will proactively collaborate with suppliers to secure the future
biobased materials to move away from virgin resources. Com- supply of resources, reduce resource consumption, and switch towards
Vattenfall aims to reach net zero GHG emissions in the full value ponents and materials that have reached their end of life are circular sourcing to fast forward our journey to fossil freedom.
chain by 2040. This means that to expand the asset base in managed by applying the logic of the waste hierarchy: prevent,
line with our investment plan, we need to both secure future reduce, reuse, recycle, and lastly, disposal, as the least preferred Circular assets
resource needs and at the same time minimise environmental option. Vattenfall will embed circularity into the design and management
and social impacts in the value chain. Increased demand for For suppliers and partners, our Code of Conduct for Suppli- of assets to reduce use of resources, extend the lifetime of assets,
key resources such as low-emission and recycled materials can ers and Partners states that they shall avoid, minimise, or miti- Transform to a more and recycle valuable resources.
impact the availability of these or increase their price. This could gate waste resulting from their business activities. Resources circular business
lower project returns or hamper business growth as well as put such as energy, water, land and raw materials should be used Circular business
our decarbonisation targets at risk. in an efficient, circular, and sustainable manner. Vattenfall will collaborate with partners to develop circular business
Nuclear waste management is governed by strict regulations. m odels solving the key resource issues in society and rethink our
Waste generated throughout In Germany, Vattenfall’s nuclear waste management responsi- c ustomer value propositions so they are circular by design.
Negative
asset life cycle impact bilities are limited to dismantling activities as the state is
Value chain: upstream and own operations (actual) responsible for intermediate facilities and final repositories. In Circular capabilities
Sweden, Vattenfall has an established nuclear waste manage- Vattenfall will build circular awareness and capabilities internally
During the life cycle of Vattenfall’s assets, some of the waste ment system, focusing on licensed waste handling as well as a e nabling a circular approach when facing operational challenges.
g enerated is not effectively reintegrated into the economy joint transport and final disposal managed by SKB (the Swedish
through reuse, recycling, or recovery. This linear practice results Nuclear Fuel and Waste Management Company). This manage-
in resource losses and associated environmental impacts, while ment system is subject to rigorous regulatory oversight. More
also limiting the ability to capture the full value of materials over information about Swedish legislation related to radioactive
time. As Vattenfall operates (Sweden) and dismantles nuclear waste can be found in the Sustainability notes E5 Resource use
assets (Sweden and Germany), we are responsible for handling and circular economy section d on page 131. Internally, the Table 20. High-risk materials in focus for circularity1
radioactive waste, which requires long-term, secure storage safety aspects of nuclear waste management are set out in the Rare earth
Risk assessed materials Steel Concrete Aluminum Copper Polymers elements Lithium
and monitoring. group Nuclear Safety and Radiation Protection Policy which
establishes safety as an overriding priority. Volume
1. For more information see page 82.
The process to identify and assess impacts, risks, and opportu- Strategy CO2 emissions
nities related to E5 resource use and circular economy is Vattenfall uses a Circular Economy Framework to focus its cir-
described in the Sustainability notes section on page 131. Supply risk
cularity work. The four focus areas are: circular sourcing, circular
assets, circular business, and circular capabilities (see Figure 8). Social risk
Policies and governance We will continue to detail our framework over time by focusing
The senior management responsibilities, policies, and manage- on assessing the potential to set targets, collecting data for Biodiversity risk
ment systems which govern environmental topics (see page process monitoring, and identifying key actions. Resource
1 Priority level 1 (highest) 2 Priority level 2 3 Priority level 3 (lowest)
83) also apply to resource use and circularity. The Environmen- inflows is mainly addressed in circular sourcing and circular
tal Policy and Environmental Management System (EMS) set assets, while waste is mostly addressed in circular assets. 1. Cobalt and Graphite could become a risk in the future related to procurement of batteries, but are not in scope of circularity at the moment.
the overarching principles and steering on resource use and Vattenfall’s circularity work prioritises high-risk materials like
circularity, covering Vattenfall’s own operations as well as its steel, concrete, aluminium, copper, polymers, rare earth ele-
upstream and downstream value chain. Both documents, ments, and lithium (see Table 20). Circular practices can reduce
address Vattenfall’s material IROs related to resource inflows the risks or impacts related to these materials. The material to increase significantly, particularly in relation to the build-out and a combination of these. Table 20 shows the high-risk materi-
and waste. inflows up until 2030 have been assessed based on the current of wind power assets. To determine the potential risks associ- als from a sustainability perspective. These materials are in focus
Through our Environmental Policy, Vattenfall commits to project pipeline with the aim to identify high-risk materials. The ated with this, a risk assessment was conducted considering for circularity at Vattenfall. Details on the method and data can
transform to a more circular business. This is carried out analysis shows that material inflows into Vattenfall are expected volumes, climate impact, supply risk, social risk, biodiversity risk, be found in the Sustainability notes E5 section c on page 131.
Vattenfall Annual and Sustainability Report 2025 102
Sustainability Statement / Environment
E5 Resource use and circular economy, cont.
Targets Progress made during reporting period
Resource inflows No wind turbines with permanent magnets were decommis-
In 2025, Vattenfall began systematically collecting data on the sioned in 2025, therefore progress against the target is not
volume and recycled content of key materials used in asset pro- applicable yet.
jects reaching Final Investment Decision (FID). In parallel, we 54 percent of composite materials were repurposed and
explored opportunities to increase the use of reused, recycled, recycled in 2021–2025, which means that Vattenfall reached
and biobased materials through 2030. In 2026, we will continue its interim 2025 target. The slightly lower circular outflow of
exploring possibilities to develop a group-wide circularity target. composite materials in 2025 compared to 2024 is explained
Vattenfall’s climate targets (see Table 7 on page 90) also con- by a lower availability of circular treatment options and higher
tribute to circularity in our operations and value chain, as using s tockpiling of composite materials1. Stockpiled materials still
recycled materials helps reduce GHG emissions compared to have the potential to be reused, repurposed, and recycled in
using virgin materials. the coming years.
Resource outflows – waste
Vattenfall has set circular outflow (waste) targets for permanent
magnets and composite materials used in our wind assets (see
Table 21). Although these targets are not mandated, they sup-
port and align with the objectives of the EU Circular Economy
Action Plan.
Table 21. Circular targets
Target year 2021–
Target Scope Base year and value and value 2024 2025
100 percent circular outflow of permanent magnets from BA Wind 2024 2030 N/A N/A
decommissioned wind farms by 2030 No windfarms 100%
As part of the targets Vattenfall has formed strategic with magnets had
relationships with specialised recycling facilities and been decommis-
technology p
roviders focused on rare earth element recovery: sioned yet.
Caremag and Cyclic Materials.
100 percent circular outflow of composite materials from BA Wind 2021 2030 58%3 54%3
wind t urbines by 2030, with an interim target of 50 percent 0% 100%
by 20252
In addition, Vattenfall committed to a landfill ban on
decommissioned wind turbine blades from own wind farms
since 2021.
1. 72 percent of all treated composite materials were repurposed and recycled in 2021–2025.
2. Vattenfall aims at 100 percent circular outflow of wind turbine composite waste by 2030 considering our outlook of wind farm decommissioning
and recycling capacity of our partners and more broadly in Europe. Circular outflow means to reuse, refurbish, repurpose, and recycle. Hollandse Kust Zuid offshore wind farm
3. Progress for 2021–2025, three onshore wind farms were decommissioned with 540 tonnes of blade waste coming from operational windfarms.
Vattenfall Annual and Sustainability Report 2025 103
Sustainability Statement / Environment
E5 Resource use and circular economy, cont.
Metrics sent to incineration for energy recovery. Nuclear waste is pri- Figure 9. Waste generated in construction, operations, and dismantling in 2025, ktonnes (2024 data)
Resource inflows marily spent nuclear fuel and core components.
Vattenfall’s key resource inflows relate to materials used for the Figure 9 shows the waste generated during construction, in
110.9 (62.4)
construction of new assets such as wind farms and distribution operations, and dismantling. Vattenfall generated 110.9 ktonnes
infrastructure, as well as the maintenance of existing assets. of waste which mainly consisted of recycling of metal and metal Non-hazardous Hazardous
The material amounts of our key materials used for new con- compounds. Of the total waste, 68.4 ktonnes (61.7 percent) was
struction and maintenance are disclosed in Table 22. The reused, recycled or recovered. While the remaining waste (42.5 Total waste
increase in resource inflows, especially for steel and concrete, ktonnes, 38.3 percent) was sent to incineration or landfill.
compared to 2024 is mainly due to the construction of new
windfarms, solar parks, and distribution lines.
For recycled content, obtaining data from suppliers is cur-
Methodologies and significant assumptions behind the
metrics, including the limitations of the methodologies used
are explained in the Sustainability notes under accounting
64.3 (20.0) 3.3 (2.2)
Total non-hazardous waste
rently challenging for construction projects and operations. policies for E5 Resource use and circular economy section a Prepared for reuse
46.6 (42.4)
Therefore, we work with the assumption that the recycled and b on page 131. The metrics reported on are not validated
content in used materials is in line with industry averages. by an external body other than Vattenfall’s assurance provider. 2.8 (1.2)
Biobased materials are mainly used in wooden poles in 0.5 (1.0)
distribution infrastructure and comprise 1.3 percent of Table 22. Resource use Total hazardous waste Diverted from disposal
Vattenfall’s total material use. Biobased materials are therefore
61.7%
not considered material. 2024 2025
54.0 (13.6)
ktonnes ktonnes
Resource outflows – waste
Steel 6 46.7
Waste is generated during the operation and maintenance of
power plants, power grids, and district heating networks, as well
as during project construction and dismantling of assets and
Concrete 16 22.9
(62.2%) Recycled
Aluminium N/A 4.8 of total waste is recovered 53.1 (12.4)
infrastructure at the end of their operational lifetime.
Copper N/A 0.9 0.9 (1.2)
Non-hazardous waste recycling increased as a result of the
demolition of a reactor building, which mainly consisted of con- Polymers N/A 4.5
crete, soil, and stones. Hazardous waste consists mostly of fly Rare earth elements N/A N/A Directed to disposal
11.1 (23.0)
ash from our biomass plants and used wooden poles that are 38.3% (38.0%) of total
Total 22 79.8
waste is non-recycled
Other recovery operations
15.9 (2.2) 2.1 (3.5)
9.0 (19.5)
Incineration
3.7 (1.4)
12.2 (0.8)
26.6 (21.4)
Landfill
Radioactive waste
2.6 (1.5) storage
24.0 (19.9) See page 147
Haringvliet hybrid park
Vattenfall Annual and Sustainability Report 2025 104
Sustainability Statement / Environment
E5 Resource use and circular economy, cont.
Key actions To raise awareness on circularity across the organisation, Allocated resources
Table 23 displays actions which were adopted and planned Vattenfall showcased circular practices through various means Actions have various resources allocated, including full-time
during 2025. Most actions focus on circular souring and waste including a brochure, webinar, and video. Additionally, a group equivalent (FTE) costs, resources as part of project develop-
management in that way supporting Vattenfall’s policy of of ambassadors was established to form an informal cross- ment and research and development budgets. There is no sig-
resource efficiency, increased use of recycled materials and business network aimed at accelerating circularity within the nificant capex or opex beyond those integrated as part of the
applying the waste hierarchy. company. project budgets within the respective business areas and Staff
Functions and these are not separately disclosed.
Table 23. Key actions in 2025 and future actions
Key action Description Scope IROs covered Expected outcome Time horizon
Increased use of recycled In line with Vattenfall’s First Movers Coalition cement commitment (10 percent of procured cement should Vattenfall-wide, Scarcity of resources for Increased use of recycled cement and a 2030
content in cement be near zero by 2030), an agreement was signed with Cemvision in December 2025 to supply circular, near BA Wind the energy transition reduced carbon footprint of materials
-zero-carbon cement during 2028–2030. The cement consists of 85 percent recycled material, and the ambi-
tion is to increase this amount to 95 percent. It will mainly be used in wind farm construction, covering 20 per-
cent of Vattenfall’s cement use in this period.
Strengthen circular • Including circularity as a focus area in Vattenfall’s Sustainable Supply Chain Roadmap Vattenfall-wide Scarcity of resources for Increased use of recycled key materials 2024 – ongoing
sourcing • In 2025, circular award criteria were developed and implemented in procurement tenders by Business Area BA Wind, Vattenfall the energy transition
Wind and Vattenfall Eldistribution AB. Eldistribution AB
Increased reuse and Vattenfall Eldistribution AB is exploring solutions for increased circularity. Vattenfall Scarcity of resources for 1. Input for development of the 1. 2024–2027
resource efficiency of 1. Pilot project launched to explore reuse of secondary substation buildings. The project involves ten secondary Eldistribution AB the energy transition technical guidelines and criteria to 2. 2025–2028
electricity distribution substations and aims to gather insights into environmental, economic, and organisational factors. In 2025, support future circular construction
components the first secondary substation project was evaluated. Waste generated initiatives.
2. Pilot project launched in 2025 to test and evaluate prefabricated modular substations which may enable throughout asset 2. Basis for decision regarding rollout
the use of lighter materials. The final evaluation will include verification of the technical solution, resource life cycle and implementation of the prefab
efficiency, cost savings, and validation of the business model. modular substation concept
Reuse of nuclear power Reusing nuclear power components internally and externally. Examples of activities at Ringhals: Ringhals, Scarcity of resources for Enhanced resource efficiency. 2025
components • Fuel holders from a decommissioned reactor were reused in another one at the same location. BA Generation the energy transition
• Back-up transformers from decommissioned reactors were sold externally to be used elsewhere.
Waste generated
throughout asset
life cycle
Increased recycling of Vattenfall worked with the Norwegian recycling company Gjenkraft and EVI to produce skis with recycled mate- BA Wind Waste generated Demonstrate possibilities for recycling 2024–2025
composite materials rials from wind turbine blades that had reached end-of-life. The skis were presented to the public during a ski throughout asset blades through a tangible innovative
event in Åre in 2025. life cycle example.
Increased reuse of wind At Dutch Design Week 2025, Vattenfall invited designers and the public to explore possibilities for reusing and BA Wind Waste generated Gather ideas on how to reuse and Annual recurring event
turbine components repurposing nacelle components from decommissioned wind farms into new applications within and outside throughout asset repurpose wind turbine components
the wind sector. life cycle
Reduced waste from offices In 2025, Vattenfall successfully obtained the Zero Waste Certification for its Amsterdam office in the The Netherlands, Waste generated More sustainable use of offices, 2025
etherlands. This certification demonstrates that the office generates a maximum of 30 grams of residual
N Amsterdam office throughout asset improved employee engagement, and
waste per employee per day. life cycle inspire future zero waste initiatives
Vattenfall Annual and Sustainability Report 2025 105
Sustainability Statement / Environment
Non-material environmental disclosures: Water
At Vattenfall, we rely on water for our operations, both as a driving Operational assets are assessed on an annual basis using the Figure 10. Operations in areas under water stress
force behind our hydropower plants and as a cooling resource in World Resources Institute’s Aqueduct Water Risk Atlas (4.0) to
our thermal and nuclear power plants. As outlined in our Environ- determine whether they are located in areas under water stress. Water stress
mental Policy, we are committed to managing water responsibly Based on this assessment, we report on water consumption from
Low <10%
and sustainably by striving to optimise water use. This also areas under high water stress and extreme high water stress
Low-medium 10–20%
includes minimising impacts on water quality, and balancing the (see Table 24 and Figure 10).
Medium-high 20–40%
needs of hydropower production and flow regulation. Within Vattenfall’s pumped hydropower plants in Thuringia (Germany)
High 40–80%
Vattenfall, hydropower accounts for approximately one third of and heat plants south of Stockholm (Sweden) are located in areas
Extremly high >80%
total electricity generation. Hydropower operations and dams classified as under high water stress. Pumped storage hydro-
affect the landscape, water flows, and natural habitats in the area, power plants operate by temporarily withdrawing and pumping Forsmark
to read more about how we address our impact on biodiversity water to store in an elevated reservoir, later releasing it to generate
see section E4 Biodiversity and ecosystems (pages 96–101). electricity. No water is consumed in the process, apart from minor Stockholm
Withdrawal and discharge of water are subject to conditions set water losses due to evaporation. Our heat plants south of Stock-
in the environmental permits. As part of Vattenfall’s transition to holm use municipal water sources. Most of the water is used for
a low-carbon economy, we are investing in renewable energy cooling and partly in district heating networks. Vattenfall’s nuclear
sources such as wind and solar, while progressively divesting from power plant in Forsmark (Sweden) is located in an area classified
fossil assets, implementing fuel switches, and upgrading power as under extremely high water stress. The Forsmark plant only
plants. By increasing the share of renewables that operate with uses limited amounts of freshwater in the plant’s processes.
little to no cooling requirements, Vattenfall is lowering its total Water withdrawals and discharges are monitored continuously
freshwater use. at all plants and are either measured by flow meters or calculated
Key metrics related to Vattenfall’s water withdrawals and from measured data/flow. For hydropower, water flow is monitored
discharges are shown in Table 24 below. at site level and reported to the relevant authorities. Water
discharged from treatment plants is continuously measured, Pumped hydro
plants in Germany
in accordance with permit conditions.
Table 24. Total water withdrawals and discharges by source
2024 2025
Total water withdrawals, m3 7,727,550,566 7,971,334,641
Seawater 7,176,957,484 7,461,923,290
Freshwater 551,593,081 509,411,324
Non-material environmental disclosures: Pollution
– of which fresh surface water 550,064,467 507,570,941
Vattenfall’s main sources of pollution are linked to our Emissions data for SO2, NOx, and PM is provided on page
– of which purchased water 1,518,054 1,834,713 thermal operations, where combustion of fuels in power 147 and is a mixture of direct measurements and calcula-
Groundwater 10,560 5,670 plants generates emissions of sulphur dioxide (SO2), tions (amount of fuels consumed in specific heat plants and
Total discharges, m3 7,726,111,963 7,970,212,610 nitrogen oxides (NOx) and particulate matter (PM). conversion factors).
Cooling water to the sea 7,176,041,619 7,462,094,675 Throughout the construction, operation, and decommis- Chemicals are managed responsibly by applying both
Cooling water to fresh surface water 549,037,701 507,259,736 sioning of Vattenfall’s power plants and networks, we technical and organisational safeguards to protect employ-
Treated wastewater to water bodies 360,707 271,477 implement measures to limit noise, light pollution, and ees and the environment. While our ambition is to phase
atmospheric emissions. These areas are managed as part out harmful substances, in certain cases the use of chemi-
Sold process water 221,298 120,600
of existing permits and through environmental manage- cals containing substances of high concern remains techni-
Total water consumption1, m3 1,438,603 1,122,004
ment systems. Vattenfall’s transition to a low-carbon econ- cally necessary. In such situations, Vattenfall continues to
Total freshwater consumption from areas under high water stress 511 15,998 omy and the subsequent reduction of GHG emissions actively seek safer alternatives and work to reduce their use
Total freshwater consumption from areas under extremely high water stress 36,739 35,875 through fossil-free solutions will also have a positive impact over time.
Freshwater intensity, m3/MWh 5.26 4.95 on reducing pollution.
1. Water consumption is equal to total water withdrawals minus total discharges.
Vattenfall Annual and Sustainability Report 2025 106
Sustainability Statement / Social
Social
Policies and governance
Vattenfall believes that social sustainability strength
Vattenfall’s social topics are primarily governed by a set of over tions, supply chain and other business relationships, and overnance, and we reassess our impact through our value
g
ens the trust between companies, employees, and
arching policy documents, including: corrective actions are defined and carried out. In addition to chain to assess whether the prioritised human rights issues
the communities we serve. We consider ethical labour
ongoing risk assessments of our suppliers, business partners are still the salient issues for Vattenfall. In addition, we review
practices and respect for human rights as fundamen
• Human Rights Policy and projects, we conduct an in-depth human rights assess the various Human Rights Action Plans on a business level.
tal responsibilities, recognising that upholding these
• Code of Conduct and Integrity ment every three to five years. The interests and views of The learnings from this annual review are used for further
values also contributes to an inclusive and resilient
affected communities, value chain workers, and other relevant enhancement of our human rights work. In the human rights
organisation. Vattenfall is aware that social impacts • Code of Conduct for Suppliers and Partners
stakeholders are taken into consideration in the risk assess assessment, the interests of affected communities are consid
have potential to occur in our value chain, and we (outlines minimum environmental, social, and governance
ment via input, interviews or feedback sessions from stake ered through direct interviews with credible proxies. No further
are constantly striving to better identify, assess, and standards for suppliers and partners)
holders or their credible proxies. Our latest assessment in 2021 engagement is carried out on Group level regarding tracking
manage these potential impacts, as well as risks • The Guide to the Code of Conduct for Suppliers and Partners identified 16 salient human rights issues, based on severity, or following up on recommendations and actions resulting
and opportunities. Sustainability is an inherent part (supports our suppliers to achieve the requirements and likelihood and relevance for business action. Of these, nine from the human rights assessment.
of Vattenfall’s strategy and business model and our expectations that are outlined in Code of Conduct for Suppliers) were prioritised in our Human Rights Action Plan. 5. Communication on how impacts were addressed and high
efforts to manage social impacts are an important
3. Implementation of actions to cease, prevent or mitigate light of future actions. Vattenfall reports its progress in the
part of our journey towards fossil freedom. These policies establish clear expectations for employees,
adverse impacts. We actively track progress of all identified Annual Progress Report, which is available on our website.
Vattenfall acknowledges that we as a company suppliers, and partners, ensuring alignment with environmental,
actions through our internal action tracker. 6. Remediation is acknowledged in importance, and the type
have a responsibility to respect all internationally social, and governance standards. The Human Rights Policy is
updated and approved by the Board of Directors (BoD) annually, 4. M onitoring and tracking the implementation and results of remedy is determined on a case-by-case basis.
recognised human rights. Vattenfall’s general human
while the Code of Conduct and Integrity (CoC) and the Code of of our human rights commitments and actions. Through (See section Processes on page 108).
rights commitments include adherence to the United
Conduct for Suppliers and Partners (CoCfSP) are approved by an Annual Management Review, we review progress of
Nations Guiding Principles for Business and Human
the BoD following any significant changes. Human rights issues our actions once a year, we assess the effectiveness of our
rights (UNGPs) and the Organisation for Economic
Cooperation and Development (OECD) guidelines for are discussed on an annual basis by the BoD and Executive
Multinational Enterprises, which itself includes a com Group Management (EGM). All publicly available documents can
mitment to respect the rights expressed in the Inter be accessed via the Vattenfall website to ensure transparency.
national Bill of Human Rights and the International Vattenfall’s CEO, together with our EGM, has overall accounta Figure 11. Human rights
Labour Conference (ILO) Declaration on Fundamental bility for human rights within Vattenfall and the Head of Strategic due diligence
Principles and Rights at Work. Development has the operational responsibility for sustainability. 2
The corporate-level sustainability team acts as a support function
and centre of expertise towards Vattenfall Group and provides Identify and
insights, guidance on prioritisation and direction, and other forms assess risks
of capacity building on sustainability issues, including on human
Policies and governance ................................................................. 107 rights. Each business area and staff function has a responsibility 3
5 1
Processes .................................................................................................... 108 for driving social sustainability performance, including compli
ance with relevant policies and legislation. Report and Policy and Act: Prevent
S1 Own workforce ................................................................................. 109
communicate embedding and mitigate
S2 Workers in the value chain ..................................................... 113
S3 Affected communities ................................................................ 117
Human rights commitments and due diligence
Human rights risks and impacts are managed systematically and
Entity specific disclosure: Security of supply................ 120 4
regularly within Vattenfall, following our version of the OECD’s six
Non-material social disclosures steps due diligence framework to identify, address and mitigate Track
→ Diversity, equity, and inclusion ........................................ 121 these risks and impacts (see Figure 11):
1. H
uman rights commitments are embedded through policies,
6
including a human rights policy, covering human rights com Stakeholder e ngagement
mitments and an approach to human rights risks. through all steps Remediation
2. Risk
assessments are conducted to proactively identify and
assess potential or actual adverse impacts in our own opera
Vattenfall Annual and Sustainability Report 2025 107
Sustainability Statement / Social
Processes
Processes to engage with stakeholders
Stakeholder engagement, including dialogue with affected
communities, is of significant value to Vattenfall, as described
on page 79, 114, and 117–119 respectively. Vattenfall engages
regularly with employees, communities, consumers, end users,
and supply chain workers. By incorporating their feedback into
decision-making, Vattenfall upholds its responsibility and
advances the transition to fossil freedom.
Processes to remediate
Vattenfall acknowledges the importance of providing accessi
ble grievance channels and remedy. We are committed to pro
viding appropriate forms of remedy in cases where Vattenfall
has directly caused or contributed to negative human rights
impacts associated with own operations and our supply chain.
The type of remedy provided is determined on a case-by-case
basis depending on the degree of severity and our connection
to the impact. Currently, Vattenfall does not have a formal Group
policy for remediation. Any remediation process is managed
directly by the responsible business area and, if necessary, with
cooperation of Vattenfall’s Legal Department, with respect to
confidentiality and anonymity of the complainant. The nature of
remediation processes varies across our different business
areas and markets, because of different regulatory requirements.
Vattenfall provides multiple channels for rightsholders to
raise concerns. At Group level, these include our web-based
Whistleblowing Channel, Group Internal Audit department and
Whistleblowing coordinators (further details on pages 124–125).
Vattenfall supports the availability of our Whistleblowing chan
nel in our business relationships (further details on page 114).
On an operational level, we offer direct contact with project
managers, stakeholder engagement managers or other staff,
to raise concerns.
Currently, Vattenfall does not have a centralised or formal
procedure for assessing stakeholder awareness and trust in its
grievance channels or remediation processes. Nor is there a
system in place to assess the effectiveness of our mechanisms
for remediation. Recognising this gap, we have taken initial
steps to address this by developing comprehensive guidelines
for stakeholder engagement. These guidelines are designed to
align with the effectiveness criteria established by the UNGPs,
as well as the requirements of the European Corporate Sustain
ability Due Diligence Directive (CSDDD). The guidelines incor
porate requirements to provide for accessible and transparent
grievance channels for affected communities. This integration
is intended to ensure that relevant criteria for effective griev
ance and remediation procedures are consistently adhered to
throughout our operations.
Vattenfall Annual and Sustainability Report 2025 108
Sustainability Statement / Social
S1 Own workforce
Impacts, risks, and opportunities Ensuring a safe and healthy work environment is also impor available. The most senior person in Vattenfall accountable for
tant to attract and retain personnel — an increasingly important this instruction is the Senior Vice President of People & Culture.
Material IROs1 Type factor as the accelerating energy transition is expected to Vattenfall’s Health and Safety Policy describes the overriding Information on non-material topics
c reate a shortage of people with the right competencies. principles for H&S and Vattenfall’s commitment as an employer Equal treatment and opportunities are important top
Negative
Health and safety for own workforce This means that our employee proposition will play a crucial as well as what the company expects from its employees and ics for Vattenfall but were not assessed as material.
impact
Value chain: own operations role in enabling us to deliver on our strategy and business non-employees in the H&S area. The Group-level H&S function Vattenfall maintains an inclusive culture where all
(potential)
model. Across all markets in which Vattenfall operates, activities is responsible for the production and annual revision of the pol employees have equal chances and development
such as site-specific H&S inductions, provision of standard icy. The CEO is responsible for the content which is subject to opportunities which is important for our success.
Vattenfall’s operations include some high-risk activities,
or job-specific personal protective equipment (for example the Board of Directors’ approval. The members of the EGM are Additionally, Vattenfall has prevention measures
mainly related to construction and maintenance of assets, where
noise-protection, eye-protection, and protective clothing), and responsible for implementing and cascading it in their organisa related to harassment in place. Our own workforce is
workers risk injuries if hazards are not correctly identified and
the introduction of new technologies to reduce human involve tions. Every manager is responsible for ensuring that their teams employed in countries where the risk of violations of
mitigated. Due to the nature of their work, operational employees
and non-employees working in the field, are at greater risk of ment in high-risk work contribute to safer working conditions. have the relevant knowledge, training, and resources to ensure international conventions on labour rights and decent
negative Health and Safety (H&S) impacts, t ypically associated These actions benefit both employees and non-employees compliance. All employees are responsible for following the working conditions is low. These are also markets
with potential injury. by reducing exposure to risk and lowering incident frequency. H&S policy. Non-employees are responsible for adherence to where local labour law enforcement is strong in terms
Vattenfall goes beyond existing standards and regulations to the policy within the parts of their organisation(s) that carry out of fair wages, excessive working hours, and freedom
safeguard H&S of our workforce, addressing not only physical work for Vattenfall. All H&S activities, including ways of working, of association for workers.
risks to our sites but also other potential negative effects such guidelines, routines, and focus areas are based on systematic Other work-related topics such as child labour and
Negative
Unhealthy working conditions as excessive workload and unhealthy working conditions. Con risk assessments regularly carried out in cooperation with forced labour are considered immaterial for Vattenfall’s
impact
Value chain: own operations tinuous systematic risk assessments are conducted through employees. Vattenfall’s H&S Policy states that work must stop if own workforce, as breaches are rare in the markets
(potential)
out the company to reduce, take actions, and follow up on risks an employee or contractor is in danger. Our safety management where we operate. Nevertheless, our policies including
to prevent work-related ill-health. systems encompass all stages of the hierarchy of controls and our Human Rights Policy strictly prohibit any forms of
Unhealthy working conditions could negatively impact employee’s
In line with this, all Vattenfall employees are covered by occu in our Health Safety Security Environment Quality (HSSEQ) tool modern slavery and child labour. Also, child labour is
mental health, work-life balance, and career development as well
pational healthcare, with training in occupational health pro Intelex, hazards and incidents are reported and managed. explicitly addressed in Vattenfall’s Code of Conduct for
as create dissatisfaction. Vattenfall acknowledges the material
vided in accordance with local work requirements. Non‑occupa Vattenfall’s dedication to create a collaborative working envi Suppliers and Partners.
impacts of healthy working conditions by addressing topics such
as mental health, work-life balance, and career development tional healthcare services, such as annual health check‑ups in ronment is built on respect, fairness, and integrity as stated in
because it leads to engaged and satisfied employees. the Netherlands and the PME family service in Germany, vary the Code of Conduct and Integrity. Vattenfall promotes diversity
by country due to differences in legislation and social security and inclusion and treating everyone with dignity and common
1. For more information see page 82. systems. These arrangements collectively support employee courtesy refraining from all forms of unacceptable behaviour
well‑being and contribute to a competitive and consistent such as bullying, discrimination, sexual (or non-sexual) harass
employee value proposition. ment, racism, aggression, violence and verbal attacks. Speak Description of Vattenfall’s workforce
IRO interaction with strategy and business model ing up is not only encouraged, it is expected. It is every employ Vattenfall uses the definitions below for employees
Vattenfall’s strategy and business model involves construction Policies and governance ee’s responsibility to report anything that does not seem and non-employees for the purpose of identifying
and maintenance of certain assets, which brings about poten Senior management responsibilities, policies and management appropriate or safe. In support of this commitment, Vattenfall material IROs. Furthermore, the breakdown and
tial negative impacts to health and safety (H&S), such as inju systems which govern social topics also apply to Vattenfall’s has a series of internal instructions which describe how to act composition of Vattenfall’s workforce is reported on
ries. Addressing these risks and their root causes is fundamen own workforce (see page 107). Vattenfall’s H&S commitments and mitigate harm if a case of discrimination is identified. These page 110.
tal to the company’s success, which is why providing a healthy are anchored in our Human Rights Policy, and relevant to the instructions also require hiring managers to shortlist at least
safe work environment is a cornerstone of Vattenfall’s efforts to management of identified material impacts. They apply to all one female and one male candidate, who are equally qualified, • Employees have a contract directly with Vattenfall.
empower people and remains one of our strategic focus areas employees in the Group. The internal Human Resources for increased managerial gender diversity in the hiring process.
• Non-employees are provided by third parties. They
(see pages 46 and 52). Vattenfall aims to achieve world-class Instruction describes the vision, governance and organisational All hiring managers are requested to take a training which sup
are primarily hired personnel, consultants or con-
H&S, which we have defined as being among the top three set up of the People & Culture department. ports the right behaviour to secure diversity, equity and inclu
tracted workers who perform work in various fields
when benchmarked against our peers in the European energy Vattenfall aims to enable all employees and managers to sion during the recruitment process.
such as construction, service, and administration.
sector. Reaching this ambition requires a mature and proactive deliver their best possible performance. A strong company
They perform work for Vattenfall at a Vattenfall
company culture in which people encourage each other to do culture with clear People & Culture processes and roles is the Processes for engagement
controlled location and is under Vattenfall’s day-to-
their best while retaining a healthy work-life balance. Targets are foundation for a successful employee journey. All information The way Vattenfall manages its workforce and therein its repu
day instruction, direction or control over H&S issues.
set and followed up on, with results feeding into future strategic relevant to employees and managers regarding processes and tation as an employer, from the perspective of current and
The non-employees are called externals in
discussions and initiatives to address any gaps. At Vattenfall we responsibilities along the employee journey is available to all potential employees, can impact our ability to attract and retain
Vattenfall’s reporting.
believe we can execute our business model and achieve world- employees via Vattenfall’s intranet including information on how key talent, and thus affect our competitiveness and ability to
class H&S; therefore, these impacts, risks, and opportunities do to address concerns and which communication channels are innovate. Vattenfall’s managers play a crucial role in motivating
not currently inform business model discussions.
Vattenfall Annual and Sustainability Report 2025 109
Sustainability Statement / Social
S1 Own workforce, cont.
and promoting employees. The managers act as role models in decided in the German Health Governance Council, and if Figure 12. Health and safety focus areas
relation to Vattenfall’s values and must ensure the creation of required it will be presented to works council committees. In
diverse and well-organised teams and provide individual Sweden, for mandatory H&S activities, such as tendering for
1
employees with a platform for regular exchange. All managers occupational health services, alignment is done with the Swed
at Vattenfall have a responsibility to live a culture that promotes ish Forum for Work Environment and Health, where employee Management To increase active and visible H&S leadership to lead employees and
employee engagement. To ensure that all managers are suffi representatives take part. H&S activities, measures and pro accountability c ontractors towards healthy and safe performance.
ciently skilled to do this, regular training sessions and various cesses concerning markets across which Vattenfall operates,
leadership tools are made available for use. Employee dialogues other than Sweden, Germany, and the Netherlands, are handled
typically take place at least two or three times a year as part of and discussed in the Health and Safety Leadership team con
each employee’s performance management process. The dia sisting of Health & Safety Directors from each business area
2
To create integrated contractor management framework, with H&S metrics,
logues can include discussions of health, work-life balance, and Staff Functions and the Vice President of Health & Safety. Contractor to drive accountability for prevention of work-related injuries, illnesses and
working conditions, and working hours. The results of the dia H&S management other harmful effects on the H&S of our contractors.
logues are analysed. Processes to remediate
For senior executives, Vattenfall hosts a conference linking For H&S concerns, employees and non-employees can report
individual development potential and aspirations with specific hazard observations and incidents via the main HSSEQ (Health,
3
business targets. Meanwhile, to support all managers, they are Safety, Security, Environment, Quality) reporting tool, Intelex,
provided with a toolbox regarding leadership and a supporting and also via other local systems. Furthermore, Vattenfall has Healthy work To continuously develop a healthy work environment in order to improve
platform where information can be obtained on how health and a robust process to learn from incidents. environment all aspects of health for Vattenfall employees.
wellbeing of employees is supported in each market in which Generally, potential remedies for those harmed are provided
Vattenfall operates, as well as methods, tools and training and the incidents are followed up by Root Cause Analysis, an
opportunities to minimise the risk of low employee engage established method to identify underlying reasons for an issue.
ment or harmful working conditions. Then, the insights are used to update H&S procedures, such
4
In the annual employee survey My Opinion (see page 28), all as continuous assessment and risk identification processes, To strengthen culture from a H&S perspective to further reduce the
H&S f requency and severity of work-related injuries, illnesses, and eliminate
employees can anonymously evaluate their working conditions, adapting training and implementing new preventive and cor culture
the accessibility of their line manager, awareness of trust struc rective actions. In addition to the H&S specific reporting tools, fatalities at Vattenfall locations.
tures, or processes and needs. Employee representatives are the Group-wide whistleblowing channel is also available (see
involved in the planning of the process. The outcomes of the pages 124–125).
surveys are analysed, and the results are used to guide our
people agenda. Targets Table 25. Overview of Vattenfall’s workforce
Work-life balance is important in attracting and retaining Vattenfall has a target on Lost time injury frequency (LTIF) which Nether- Of which Of which
engaged employees, and Vattenfall gives employees the possi measures frequency of work-related injuries resulting in people Sweden Denmark Germany lands Poland UK Other Total part time temporary
bility of hybrid working when tasks and responsibilities allow for being unable to work for one day or more on an annual basis. Full time equivalents 11,557 631 3,453 4,124 466 480 159 20,869
this. Flexible working hours and hybrid work options are part of The scope of this target is own employees and it was set for the Headcounts 11,645 634 3,537 4,367 467 485 166 21,301 1,935 766
Vattenfall’s work-life balance strategy and are embedded in vari strategy period 2021–2025. The baseline year was 2019 when
Average headcount 10,636 635 3,566 4,378 439 507 164 21,285
ous company agreements. LTIF was at 2.1. LTIF is tracked and followed up in all business
Constructive cooperation with unions and works councils areas and at Group-level monthly. The target is 1.0 or lower and Women %1 31% 28% 32% 30% 31% 33% 42% 31%
and their involvement based on relevant laws are guaranteed in the outcome for 2025 was 1.7 compared to 1.4 in 2024. Women headcount1 3,662 175 1,120 1,294 143 162 96 6,652 1,099 214
all markets where Vattenfall operates. In particular, the different Furthermore, Vattenfall has a continuous internal target since
Men % 69% 72% 68% 70% 69% 66% 58% 69%
types of involvement, such as information, consultation, and ini 2023, the World Class H&S plan fulfilment score, which tracks
tiative rights, are a natural part of Vattenfall’s co-determination in percent the extent to which the yearly H&S plans for each Men headcount 7,982 459 2,416 3,070 324 322 70 14,643 836 552
culture. Unions and works councils are also important for issues business unit and/or business area have been reached. Turnover rate 10% 9% 6% 11% 3% 14% 9% 9%
such as occupational safety. Vattenfall has H&S plans for all business areas and staff func Leavers in FTE/ 1,170 58 217 435 12 68 15 1,974/
Due to different legal requirements and procedures in the tions, covering four focus areas: Management accountability; headcount 2,058
markets across which Vattenfall operates, national H&S activi Contractor H&S management; Healthy work environment; and
1. Includes other = gender not specified.
ties, measures, and processes are managed in various ways. H&S c ulture, see Figure 12. Each focus area has several targets
In Sweden, Germany, and the Netherlands these topics are connected to them, resulting in a total of 10 targets. Each busi There are no non-guaranteed hours employees. The gender composition of the Board of Directors is 23 percent female, 77 percent male; for the
handled via national decision and consulting bodies in which ness unit sets up relevant activities in order to fill their gaps in E xecutive Group Management, the gender composition is 44 percent female, and 56 percent male. No other structured diversity analysis has been done.
representatives of the business unit and employees take part. each focus area and contribute towards the targets. Biographies of members can be found on pages 67–70.
For example, in Germany, decisions on health are aligned and
Vattenfall Annual and Sustainability Report 2025 110
Sustainability Statement / Social
S1 Own workforce, cont.
During the year, fulfilment scores towards these H&S plans Figure 13. LTIF internal employees 2021–2025
are measured in percent and followed up on a quarterly basis.
The target was 90 percent for 2025. The result was 96.6 per 2.5
cent in 2025 compared to 95.3 percent in 2024. 2.1
For the period 2026–2030, Vattenfall has set a target on total 2.0
recordable injury frequency (TRIF+) of lower than 2.0, with a zero 1.7
1.5
fatality threshold. 1.5 1.4
1.1
Metrics 1.0 Target
H&S is managed according to the principles of ISO 45001.
All business units are certified according to ISO 45001 require 0.5
ments, and the management systems are implemented and
run by internal Vattenfall resources. 100 percent of Vattenfall’s 0
2019 2022 2023 2024 2025
own workforce is covered by H&S management systems, both Base year
company-wide as well as locally.
Table 26. Workforce H&S metrics, 2025
Sweden Germany Netherlands UK Denmark Vattenfall total2
Employees
LTIF1 (entity-specific) 1.6 3.3 0.9 0 0.9 1.7
Fatal accidents 0 0 0 0 0 0
High consequence LTI3 (entity-specific) 0 0 0 0 0 0
Total LTI (entity-specific) 32 20 6 0 1 59
TRI4 68 27 21 0 11 118
TRIF 3.3
Lost days 500 255 57 0 11 823
Worked hours (entity-specific) 19,546,000 6,090,000 7,027,000 854,000 1,074,000 35,611,000
Sick leave per country (entity-specific) 2.0% 2.7% 6.3% 1.2% 2.5% 3.0%
Recordable work-related ill-health5 5 11 5 1 2 24
External (contractors)
Fatal accidents 0 0 0 0 0 0
High consequence LTI3 (entity-specific) 1 0 0 0 0 1
Total LTI (entity-specific) 46 10 3 3 1 63
TRI4 78 19 7 4 2 110
TRIF 3.6
Employees and externals (contractors)
TRIF+ 3.5
1. LTIF is expressed in terms of the number of lost time work injuries (per 1 million hours worked), work-related accidents resulting in absence longer than
one day, and accidents resulting in fatality.
2. Incl. other countries.
3. A high consequence LTI is an LTI with an actual or expected absence of more than six months.
4. TRI(F): Total Recordable Incident (Frequency).
5. C ases of recordable work-related ill-health. The sources vary in each country. For Germany the data is for 2024 due to the fact that we get the report
from the insurance company in April the year after the actual year. All other countries are covering 2025.
Vattenfall Annual and Sustainability Report 2025 111
Sustainability Statement / Social
S1 Own workforce, cont.
Methodologies and significant assumptions behind the met Key actions The effectiveness of the actions is tracked via the annual Allocated resources
rics, including the limitations of the methodologies used are To reach the targets for own workforce, reduce Vattenfall’s employee survey, My Opinion, and risks and opportunities are There is no significant capex or opex allocated for the actions
explained in the Sustainability notes under accounting policies impacts and achieve our ambition of fostering a safe, inspiring, assessed and followed up on in risk assessments according beyond resources already included as an integrated part of the
for S1 Own workforce (see page 132). inclusive, and caring workplace, several actions have been con to ISO 45001. relevant units’ budgets. These are not separately disclosed.
ducted. These are further outlined in Table 27 below.
Table 27. Key actions in 2025 and future actions
Key action Description Scope IROs covered Expected outcome and future actions Time horizon
Creation of new H&S During the year, the EGM approved a new H&S Strategy. It consists of three Company-wide Unhealthy working conditions The strategy should foster a mature and proactive H&S culture with The strategy is
Strategy strategic priorities; H&S Ownership, H&S Risk management and H&S Efficiency. Health and Safety of own workforce measurable, proven, excellent H&S performance. The targets and to be delivered
The World Class Health and Safety ambition remains the same – to be in the activities in the strategy aim to contribute towards the strategic target 2026–2030
top three when benchmarked with peers in the European energy sector. of TRIF+ lower than 2.0 with zero-fatality by 2030.
A tailored approach will be applied where each business area, business unit, and
Staff Function sets its own activities, aligned to shared strategic priorities and
objectives, but shaped by local risks and needs.
Critical Control Management Critical Control Management (CCM) is a proven methodology to prevent Company-wide Unhealthy working conditions By handing over the project to the business, CCM is now a way of Continuous
handed over to the business f atalities and serious injuries by identifying and focusing on the controls which Health and Safety of own workforce working and evidence shows that it is most effective when it is fully
matter the most. CCM is a group-wide strategic project which has been piloted integrated into existing practices and processes. Group H&S will
and rolled out in operational business areas over the last years. During 2025, the continue to offer cohesive support, including training in Bowtie
project moved into the implementation and support phase and was handed creation (a risk assessment and visualisation method), software train
over from Group to the business areas. ing, tools and dashboard to show control health.
Electrical safety During 2025, VEST (Vattenfall Electrical Safety Team) produced a company- Electrical work Unhealthy working conditions The main goal is to increase safe work standards and habits when Continuous
improvements wide electrical safety minimum standard. Additionally, they created a concept Health and Safety of own workforce it comes to electrical work. All Vattenfall electrical technicians will
for electrical safety training to be piloted. be expected to successfully complete the electrical safety training.
One common HSSEQ tool During 2025, a project started to find a common Health, Safety, Security, Company-wide Unhealthy working conditions Key benefits include cost savings, better decision-making, and The project stretches
for reporting nvironment and Quality (HSSEQ) reporting tool. This will replace multiple
E Health and Safety of own workforce enhanced user experience. Once a supplier is selected, the next over several years
existing systems to improve efficiency, compliance, and support sustainability phase will consist of the implementation of a pilot before full roll out.
initiatives. The pre-study phase, which focused on gathering requirements and
evaluating potential solutions, was completed during the year.
Improved incident The minimum standard for Health and Safety Investigation and Learnings Company-wide Unhealthy working conditions The aim is to improve the quality of incident investigations, share Implementation
investigation and was reviewed and updated during 2025. Health and Safety of own workforce learnings across business areas, prevent recurrence and improve during 2026
learning forum safety. Develop and roll-out three levels of incident management
training: awareness, methodology, and investigation team leadership.
New leadership programme A new take on leadership, LEAD, was approved by the EGM in January 2025 Company-wide Unhealthy working conditions A common view of what great leadership looks like across Vattenfall Launched in 2025
is being developed and is now being implemented across the company, targeting all leaders. Based regardless of Business Area, country or leadership level. Increased and thoroughly
on psychological safety, it focuses on self-leadership both for the leader and for possibilities for a joint talent approach company-wide. Increased implemented during
their teams to be more values-driven, accountable, and empowered in their motivation and increased performance through focusing on what 2026 and onwards
actions and decisions. creates an impact.
New employee survey The employee survey My Opinion has been reviewed during 2025 to Company-wide Unhealthy working conditions A more actionable employee survey, asking more targeted questions.. Continuous
approach be updated.
Vattenfall Annual and Sustainability Report 2025 112
Sustainability Statement / Social
S2 Workers in the value chain
Impacts, risks, and opportunities IRO interaction with strategy and business model Policies and governance
Material impacts on workers, H&S as well as child and forced Senior management responsibilities, policies and management
Material IROs1 Type labour are not widespread or systemic throughout Vattenfall’s systems that govern social topics (see page 107) also apply to Information on non-material topics
value chain. These potential impacts are rather related to spe- the topic of workers in the value chain. Notably, each of the poli- Equal treatment and other sub-topics related to
H&S in the supply chain Negative
impact cific contexts and thus typically connected to certain high-risk cies mentioned below covers issues relating to H&S as well as workers’ rights are important within Vattenfall’s supply
Value chain: upstream (potential) geographies and product categories. For H&S, this includes child and forced labour in the value chain. These policies are chain, but are not material. Internal review of Vattenfall’s
installations, construction, manufacturing, and mining of raw applicable to all value chain workers throughout the value chain, supplier database shows that the majority of
The risk for H&S issues in the supply chain is defined by the materials. For forced labour this is mainly connected to certain including first tier and beyond. Vattenfall implements compre- Vattenfall’s Tier 1 supply chain is located in Vattenfall’s
potential for injuries related to the provision of inadequate equip- product categories such as solar panels and batteries, while for hensive due diligence processes to ensure to engage with sup- core markets which are regions with established
ment or due to the lack of clear H&S guidelines. The different child labour this lies typically in opaque upstream supply chains pliers who uphold the same level of respect for employees and human rights legislation, therefore lowering the likeli-
categories of value chain workers potentially impacted by H&S connected to raw materials. Strategic sourcing decisions are their rights as Vattenfall does. hood of this type of impact. Additionally, the likelihood
conditions include services on-site at Vattenfall premises: increasingly informed by contextual risk assessments, with Vattenfall’s policy commitments related to H&S, child and of negative impacts is reduced through thorough sup-
1. C ontractors providing labour-intensive services on-site at potential to prioritise suppliers demonstrating stronger perfor- forced labour in the supply chain are embedded in an internal plier screening and audit processes, active collabora-
Vattenfall premises mance related to value chain workers. Vattenfall believes poten- governance system. A Compliance Framework was imple- tion and providing access to grievance mechanisms. A
2. Upstream value chain workers, especially those involved tial risks among Tier 1 suppliers can be adequately addressed mented within the procurement department to ensure compli- positive impact on Tier 1 suppliers regarding diversity
in product manufacturing, or raw material extraction and through due diligence processes without needing to shift our ance with legislation, internal policies, commitments depart- and inclusion is pursued by integrating it as a parame-
p rocessing business model. ment instructions, and guidelines in all purchasing processes. ter in supplier selection, with effectiveness evaluated
3. Workers in the downstream value chain involved in logistics When identifying our IROs, all value chain workers who could The Vattenfall Human Rights Policy together with the Human on a case-by-case basis.
and distribution, including road and marine transport be materially impacted in connection to Vattenfall were Rights Action Plan and the Human Rights Progress Report lay
4. Vulnerable workers, such as migrant workers, young
included in the scope. We also examined the effects of price the foundation for Vattenfall’s human rights due diligence work
workers, and women.
negotiations on wages and work-life balance of value chain related to workers throughout the value chain.
workers, their ability to organise and the respect for human The UK Modern Slavery Statement sets out Vattenfall’s com-
rights. Setting unrealistic deadlines or tough price negotiations mitment to combating all forms of modern slavery and human
Child and forced labour in the supply chain Negative could lead to negative effects on value chain workers. trafficking. It outlines processes for identifying and mitigating
impact
Value chain: upstream and downstream (potential) Both, H&S and child and forced labour risks affecting value any risks of modern slavery throughout the value chain, includ-
chain workers are covered by the Code of Conduct for Suppliers ing associated health and safety risks.
There is a risk of child and forced labor when suppliers and and Partners (CoCfSP) and are part of due diligence processes. The Vattenfall CoCfSP outlines minimum standards for sup-
sub-suppliers operate in high-risk contexts without implement- These processes are implemented to mitigate risks for value pliers and partners, including on H&S, child and forced labour.
ing adequate prevention m easures. Potential child and forced chain workers and are further outlined in Table 28. First tier suppliers and partners are expected to comply with
labour may have a negative impact on the following categories By ensuring that Tier 1 suppliers are fully aware that H&S the CoCfSP and ensure that their supply chains also meet
of the value chain: compliance is a mandatory requirement for collaboration with these standards. Additionally, suppliers must communicate the
1. C ontractors providing labour-intensive services on-site at Vattenfall, the occurrence of workplace incidents and accidents standards to their workforce, which makes the requirements
Vattenfall premises can be reduced. Suppliers are also informed that any form of applicable to value chain workers. Vattenfall’s CoCfSP is
2. Upstream value chain workers, especially those involved child or forced labour is unacceptable to Vattenfall and that updated approximately every two years, with the latest update
in product manufacturing, or raw material extraction and Vattenfall expects its suppliers and sub-suppliers to take ade- being completed in 2024. The most recent update included
p rocessing quate measures against all forms of child and forced labour. new requirements which strengthened workers’ rights across
3. Vulnerable workers, such as migrant workers, young workers Related to H&S, no limitations in the supplier base are experi- various topics including forced labour and H&S.
and women. enced as a result of these measures. In relation to child and
forced labour, board-level discussions led to the decision to
1. For more information see page 82. implement an enhanced due diligence process in the sourcing
of certain product categories, such as solar panels.
Vattenfall Annual and Sustainability Report 2025 113
Sustainability Statement / Social
S2 Workers in the value chain, cont.
Processes for engagement Table 28. Mechanisms for engaging with value chain workers
Vattenfall has several tailored processes to engage with value
chain workers, their credible proxies or legal representatives on
Category Mechanism for engaging with value chain workers Frequency Engagement type
topics such as H&S and issues concerning child and forced
labour. These processes are anchored in the compliance with
the CoCfSP and include counterparty screening, sustainability Code of Conduct for Suppliers and Partners (CoCfSP) Prerequisite for contract Indirect through
The CoCfSP sets out minimum requirements for suppliers and partners, including for H&S, and child and forced initiation and main supplier representatives
audits on Tier 1 suppliers (with a broader approach being
Foundation labour. Vattenfall expects Tier 1 suppliers to comply with the CoCfSP and ensure that their supply chains meet these tained throughout
developed to address risks beyond Tier 1). They also include standards, thereby extending applicability to value chain workers beyond the Tier 1. Additionally, Vattenfall require all relationship
enhanced due diligence process that provide essential infor suppliers to communicate the standards in the CoCfSP to their workforce.
mation regarding value chain workers; supplier training and
collaboration in multi-s takeholder initiatives that foster consul Counterparty screening process Prerequisite for contract Indirect through
tation with affected suppliers and peers; the whistleblowing To ensure compliance with the CoCfSP, the aim is to screen all potential Tier 1 suppliers with estimated spend initiation and continu legitimate represen
procedure that enables direct participation from value chain above EUR 10,0001 against sanctions lists, adverse media, and risks related to ownership structure and politically ous monitoring in tatives and credible
workers, all of which are described in Table 28. exposed persons. Among other measures, Vattenfall reviews public statements of legitimate representatives or individual cases proxies
Within Vattenfall, responsibility for engaging with value chain reports of credible proxies to understand the perspective of workers. If any violations are detected, Vattenfall
workers is managed by the unit undertaking the procurement engages, involving managers or other representatives of value chain workers. Active high-risk suppliers with
a contract value above EUR 10 million are continuously monitored1.
or sourcing, or the contract owner, depending on the type of
product and the phase of the respective process. Each sourcing
stream has specific contract volume thresholds that initiate the Sustainability audit process on suppliers and sub-suppliers Prerequisite for contract Direct
Sustainability audits assess compliance with the CoCfSP and engage directly with workers in the value chain of initiation with high-risk
screening and sustainability audit processes, as outlined in potential Tier 1 suppliers prior to contracting. Occasionally, audits are extended to include Tier 2 suppliers. These audits suppliers and surveil
Table 30. In addition, different industry and multi-stakeholder Information involve interviewing value chain workers on working conditions and collecting insights into the conditions of particu lance audits every three
initiatives are relevant for each sourcing stream. larly vulnerable groups, such as women, migrant workers, and dispatch workers. Corrective action plans are imple to six years in individual
Going forward, a pilot on workers’ voice tool on selected sup mented by suppliers, and through follow-up the effectiveness of value chain worker engagement can be evaluated. cases
pliers is planned. This tool will allow workers in the value chain
to provide feedback, express concerns, and communicate their Enhanced due diligence process Prerequisite for contract Direct and indirect
needs via an anonymous survey. The objective with this is to When directly sourcing selected high-risk product categories, potential Tier 1 suppliers undergo an enhanced initiation for selected through credible
improve risk identification and enhance engagement with due diligence process. This process evaluates suppliers more thoroughly based on risks specific to their product high-risk supply chains proxies
workers in the value chain based on survey results. category. Depending on the context, the steps can vary, but often include supplier screening, a desktop review of and continued through
relevant external reports from credible proxies, traceability records, an overview of due diligence measures and a out relationship
full sustainability audit. The results of these due diligence steps are used to engage with suppliers regarding the
findings, requesting clarification and/or correction where necessary. This approach enables a comprehensive risk
assessment and ensures that human rights and sustainability are integrated into purchasing decisions.
Supplier trainings Event-based Indirect through
During training sessions, Vattenfall engages with Tier 1 supplier representatives to raise awareness on human rights supplier representatives
due diligence. This covers topics such as H&S of workers and the risks of child and forced labour.
Collaboration in multi-stakeholder initiatives Event-based Direct and indirect
Consultation Through collaborating with peers, NGOs, and civil society in industry or multi-stakeholder initiatives, the aim is to through supplier
engage directly with workers in the deeper supply chain. Examples include joint action on the aluminium supply and legitimate
chain and the prevention of labour exploitation at large construction sites in the German Energy Sector Dialogue, representatives, and
as well as the copper and lithium supply chain in the International Responsible Business Conduct Agreement for the credible proxies
Renewable Energy Sector. In both cases, additional focus is given on interviewing particularly vulnerable groups or
their representatives.
Whistleblowing procedure Event-based Direct
The whistleblowing procedure (described in detail on pages 124–125) enables internal and external stakeholders,
Participation including all value chain workers, to anonymously report serious irregularities and other complaints to Vattenfall.
This process can also be used by value chain workers to report violations related to their working conditions.
1. See more information in Table 30 on page 115 regarding thresholds for counterparty screenings and industry initiatives per sourcing stream.
Vattenfall Annual and Sustainability Report 2025 114
Sustainability Statement / Social
S2 Workers in the value chain, cont.
Processes to remediate and communicated to on-site workers. Vattenfall’s procedure a relevant factor when awarding new suppliers. Because of this, visibility and accountability beyond Tier 1. To extend reach and
Vattenfall has several processes in place to remediate potential for remediation in connection to the audit process, is defined in Vattenfall tracks a set of company-specific metrics in connec leverage, Vattenfall partnered with industry initiatives, which
negative impacts on value chain workers including H&S issues an internal Audit Guideline and Red Flag Guideline. tion with both IROs. No cases of child and forced labour have have enabled us to increase leverage and impact. Some of
and child and forced labour. One example is the whistleblowing The Audit Guideline provides a general understanding of the been found in our Tier 1 suppliers in 2025. For company-spe Vattenfall’s key actions were aimed at reducing risks, while
procedure that allows all relevant stakeholders, including value steps the audit process consists of, ensuring quality in the cific metrics in connection to H&S, see Table 29. Methodolo others were focused on minimising potential negative impacts
chain workers, to raise concerns and alert us to serious risks of audit process. It serves as a baseline for decisions on how to gies and significant assumptions behind the metrics are or evaluating and improving our due diligence processes.
wrongdoing and report complaints. follow up on certain types of findings, such as issues related to explained in the Sustainability notes under accounting policies No quantitative data on progress is available, but qualitative
As per Vattenfall’s CoCfSP, suppliers are required to provide H&S, as well as child and forced labour. for S2 Workers in the value chain (see page 132). information about the key actions and the future actions is
appropriate grievance mechanisms to all personnel and inter Red flags, as outlined in the Red Flag Guideline, include given in Table 31.
ested parties, including affected communities, to raise issues severe H&S hazards, as well as child and forced labour. When Key actions
concerning the workplace, the environment, or the supplier’s or a red flag is identified, certain steps must be followed: a work In 2025, various measures were taken to identify and address Allocated resources.
partner’s business practices. Suppliers are also required to ing group is formed to evaluate the case and additional informa IROs related to H&S and the risk of child and forced labour There is no significant capex or opex allocated for the actions
have a remediation process in place, through which reported tion is gathered if needed. The case is assessed to determine affecting value chain workers. Given transparency challenges beyond resources already included as an integrated part of the
violations can be appropriately addressed. When conducting whether it is systemic or not. If it is not systemic, the issue must and limited leverage, initiatives to date have primarily focused relevant units’ budgets. These are not separately disclosed.
on-site sustainability audits, the availability of such channels is be corrected by the supplier and monitored by Vattenfall for on Tier 1 suppliers, while opportunities remain to strengthen
verified and followed up as needed. Current processes do not resolution. If it is systemic, a relevant local independent organi
yet include mechanisms to evaluate worker awareness or trust sation oversees the implementation of corrective action.
in grievance channels, nor systematic tracking of issues raised During 2026, the focus will be on improving and further Table 29. Counterparty screenings, sustainability audits, and findings (entity-specific metrics)
and resolved. standardising the grievance mechanism and the process for
Goods and services Waste and Natural Nuclear
As part of the audit process for all high-risk suppliers – identi remediation of negative impacts on value chain workers. (Procurement department) biomass gas fuels
fied through a supplier risk assessment tool – any reported find 2024 2025 2024 2025 2024 2025 2024 2025
ings, including those related to value chain workers’ health and Targets
safety or child and forced labour, are addressed in a Corrective No formal targets have been set yet, due to the complexity of Number of counterparties 25,932 2 2 , 882 173 210 N /A N/A 12 13
Action Plan. These plans specify the remedial actions the sup collecting holistic H&S and child and forced labour data from Number of screenings conducted* 3,869 8,864 168 199 N/A N/A 20 20
plier must take, and Vattenfall follows up to ensure the issues the value chain. Number of screening findings related to value chain
are adequately resolved. workers’ H&S* 4 7 N/A N/A N/A N/A 2 0
Depending on the nature and severity of the finding, the Metrics Number of sustainability site audits conducted
follow-up verification could involve a desktop review or a H&S as well as child and forced labour in the supply chain at (potential) suppliers* 48 36 42 38 N/A N/A 4 5
follow-up audit. Whilst conducting an audit, Vattenfall also are prioritised topics for the qualification of Tier 1 suppliers, Number of audit findings related to value chain
ensures that the whistleblowing channel is made available a requirement in sustainability auditing and screening, and workers’ H&S* 131 59 N/A N/A N/A N/A 8 0
* This figure includes both actual and potential/prospective suppliers.
Table 30. Thresholds and industry initiatives per sourcing stream
Goods and services Waste and biomass Natural gas Nuclear fuels
Threshold for screening All counterparties with estimated spend above Differing thresholds to conduct screenings are applied All natural gas counterparties. All nuclear fuels counterparties.
EUR 10,000. across the organisation, which are currently being aligned.
Threshold for Suppliers from high-risk countries and/or when providing Differing thresholds for sustainability audits are applied There are no audits conducted on gas suppliers as All nuclear fuel suppliers are regularly audited
sustainability high-risk product categories with contracts over EUR across the organisation, which are currently being aligned. holesale market are used to obtain gas for Vattenfall’s
w (every three to six years).
site audits 100,000 are regularly audited (every three years). own consumption and customers.
Industry and Industry initiatives in goods and services are often product The woody biomass that was purchased for third parties Vattenfall supported the Gas Taskforce initiated by the Vattenfall is an active member of the World Nuclear
Multi-stakeholder or industry specific which is why Vattenfall participates in on the international market in 2025 was sourced from Responsible Commodities Sourcing Initiative (RECOSI), Association (WNA), participating in the WNA ESG
Initiatives several of these, including the Solar Stewardship Initiative, certified suppliers within the EU, US, and Canada. The which is investigating if the model used to address working group.
International Responsible Business Conduct Agreement adopted certifications include: the Sustainable Biomass sustainability risks of coal producers can be adapted for
for the Renewable Energy Sector, and the German Energy Program (SBP) and/or the Forest Stewardship Council the natural gas supply chain. As part of this, a due dili
Sector Dialogue. (FSC). gence framework for natural gas is designed that tackles
a range of sustainability risks, including forced labour.
Vattenfall Annual and Sustainability Report 2025 115
Sustainability Statement / Social
S2 Workers in the value chain, cont.
Table 31. Key actions in 2025 and future actions
Key action Description Scope IROs covered Expected outcome and future actions Time horizon
Pilot on tools and processes Vattenfall participated in two collective actions, led by the German Energy Contractors at Vattenfall H&S in the supply chain With implementation, the aim is to improve risk identification on Initial pilot was
improving worker welfare ector Dialogue and the International Responsible Business Conduct Agree
S controlled sites projects involving contractors and mitigate negative impacts on ompleted in 2025,
c
ment (IRBC) for the renewable energy sector, focusing on employee well-being. Child and forced labour these workers. Based on the results of the pilot, selected measures and implementation
Together, the initiatives developed a toolbox to identify and manage risks in the supply chain and tools will be implemented in the organisation on a broader scale. is planned for 2026.
related to health, safety, and child and forced labour. In 2025, the toolbox was
tested in projects exposed to such risks, and the organisations provided feed
back based on their experiences.
Pilot on supply chain A pilot project was launched to increase transparency in selected supply chains Workers in high-risk supply H&S in the supply chain By enhancing transparency in selected supply chains, the aim Initial pilot was
transparency software and to understand impacts, risks, and opportunities for workers beyond Tier 1. chains (solar panels, wind is to identify risks and minimise negative impacts on value chain completed in 2025
In 2025, user requirements for a transparent solution were gathered, and a turbines, batteries) Child and forced labour workers beyond Tier 1. After testing has been successfully completed, and implementation
software tool that visualises high-risk categories in the supply chain was tested, in the supply chain it lays the foundation for broader implementation across high-risk is planned for 2026.
with a focus on health and safety as well as child and forced labour. categories.
Actions to increase Several initiatives were carried out to increase transparency and manage risks in Workers in high-risk supply H&S in the supply chain The combined outcome of the efforts is to enhance transparency in Continuous
transparency in the value chains. Traceability reports were requested from suppliers of high‑risk chains (including solar panels selected supply chains to identify risks and minimise negative impacts
the supply chain components to better assess risks of forced labour and other labour‑related and batteries) Child and forced labour on value chain workers beyond Tier 1.
risks. As part of Vattenfall’s collaboration with battery suppliers, they were also in the supply chain
encouraged to increase transparency regarding the origin of their materials,
strengthening the ability to identify risks of child and forced labour linked to
raw materials.
Apply OECD due diligence A benchmark and gap assessment of Vattenfall’s due diligence process was Internal processes H&S in the supply chain Based on the identified gaps, several actions are planned, including: Initial assessment was
process to supply chain focus conducted against best practices for each stage of the OECD Due Diligence • Enhance key policies by strengthening requirements for H&S, completed in 2025
areas Process for the supply chain focus areas which include H&S and child and Child and forced labour as well as child and forced labour and implementation
forced labour. This was done to identify shortcomings and potential enhance in the supply chain • Revise the Product Category Risk Matrix, to indicate products of actions is planned
ments, with emphasis on risks to value chain workers. exposed to H&S and child and forced labour risks for 2026.
• Establish a system to monitor H&S and child and forced labour risks.
Engagement with (sub) Continuous dialogue with key suppliers and contractors enables the manage Contractors in Vattenfall H&S in the supply chain By engaging with selected contractors and suppliers in high-risk Continuous and
uppliers on material IROs
s ment of high‑risk issues such as working conditions and child and forced labour ontrolled sites and selected
c context, Vattenfall aims to: event-based
in the supply chain. Regular on‑site safety meetings with (sub)contractors are suppliers in high-risk supply Child and forced labour • Raise awareness for topics such as H&S, as well as child and
used to identify, assess, and mitigate risks before and during construction work, chains in the supply chain forced labour
strengthening both awareness and the overall safety culture. In 2025, biannual • Identify actions to mitigate the risks related to the above topics
meetings were also held with suppliers in the solar energy supply chain to
• Remediate impacts.
reduce the risk of forced labour.
H&S Contractor management The Vattenfall group-wide H&S strategic project “H&S Contractor management” Contractors in Vattenfall H&S in the supply chain The main goal is to define and implement requirements and support Project was com
standard involved updating and piloting the standard for H&S Contractor management controlled sites mechanisms to drive H&S performance for contractors, aligning with pleted in 2025 and
across all business areas to test its how it works in practice. Vattenfall’s H&S ambition to become world class. the resulting standard
will be implemented in
the coming 2–3 years.
Enhanced due diligence An enhanced due diligence process was applied for bioenergy feedstock Internal processes Child and forced labour The aim is to avoid causing negative impacts on value chain workers Continuous
rocess for bioenergy
p coming from outside the European Union relying on EU recognised voluntary in the supply chain by sourcing from certified supply chains.
feedstock certification schemes along the whole supply chain (or chain of custody
certification schemes) which address child labour as one of their criteria.
Vattenfall Annual and Sustainability Report 2025 116
Sustainability Statement / Social
S3 Affected communities
Impacts, risks, and opportunities IRO interaction with strategy and business model Specific commitments regarding affected communities are Suppliers and partners are, according to the CoCfSP expected
Transitioning to a fossilfree society will impact all of society stated in our Human Rights Policy, including the following to ensure that their respective supply chains adhere to equiva
Material IROs1 Type with certain communities and individuals facing greater effects. dimensions: lent standards.
Negative Societal and regulatory safeguards, like permitting processes, • Respect for affected communities’ rights, interests, concerns
Direct negative effects on living conditions are in place to mitigate these impacts. Engagement with
impact and development aspirations through meaningful stakeholder
Value chain: downstream (actual) affected communities as well as the rights of indigenous engagement
peoples are identified as two of Vattenfall’s salient human
• Compliance with local regulatory standards regarding
The development of new assets can negatively impact living rights issues. We conduct human rights due diligence in our
conditions through factors such as noise, shadow flicker and
consultation and social impact assessments. Provision of
energy transition efforts and aims to ensure fair distribution
visual disturbance (see also Table 32). Recognising that stakeholder-appropriate channels to raise concerns during
of benefits and that no one is disproportionally burdened by
Vattenfall’s operations affect local communities – ranging from and after projects are completed, with a particular attention
related changes. Processes for engagement
the visual and acoustic effects of wind turbines to the installation given to seldom heard or vulnerable groups
Due to Vattenfall’s growth investments, affected communi Vattenfall tailors its local engagement approach to the unique
of overhead power lines – we actively engage with local stake- ties directly influence the strategy, as project timelines and • The topic of indigenous peoples has also been identified as characteristics of each location and project. Stakeholder
holders to minimise these impacts and respect social, cultural, feasibility can be affected by community considerations and salient, and commitments are set out in the Human Rights engagement is managed individually in each business area,
and economic rights. interactions. With the growth in renewables, including expan Policy, including the following dimensions: with the responsibility officially held by the relevant business
sion of onshore wind assets in the north of Sweden, having a – Conducting activities with special attention to the rights area and project manager.
respectful and compliant dialogue with Sámi communities is of indigenous peoples and strive to minimise negative Prior to project initiation, each business area conducts local
Avoidable negative impacts of assets or central to the strategy. impacts consultation processes in compliance with local laws to under
operations on the way of living for Negative
impact Vattenfall’s material impacts are systemic as they are closely – A commitment to free, prior and informed consultation stand community priorities and concerns. This includes explicit
indigenous peoples (potential) linked to our strategy and business model. To advance the processes consultation with landowners, community representatives, and
Value chain: downstream energy transition with a focus on renewables, negative impacts – S takeholder engagement processes to minimise the risk affected communities through transparent communication
on nearby communities are inevitable. of negative impacts on indigenous peoples, including on channels based on local stakeholder needs. Such channels may
Vattenfall’s operations have negative impacts on the indigenous reindeer husbandry, as well as best practice guidelines to include individual meetings, workshops, open house events,
The impacts of Vattenfall’s operations on communities in our
peoples in the north of Sweden, the Sámi, both historically and
value chain varies in relation to the different types of communi respect Indigenous peoples’ rights. phone calls or emails, as well as surveys and polls. In addition,
today, considering our asset development plans. If engagement
ties (see Table 32). All affected communities that are likely to be information is often disseminated through project websites,
is inadequate there is a risk that avoidable impacts are over-
materially impacted by Vattenfall are included in the scope of Further commitments on engaging with affected Sámi commu press releases, adverts, and social media. Beyond legal require
looked. Impacts include the disruption of the daily livelihoods
disclosure under ESRS 2 SBM3. For detailed information on nities in Vattenfall’s own operations are outlined in a separate ments, we seek input from affected communities on their pre
and customs of the Sámi population, for example through
this, see the value chain visualisation (page 78) and Table 3 public document titled Approach towards Indigenous P eoples ferred modes of engagement.
impacting their reindeer herding, their tangible or intangible
(page 82). in Sweden. Vattenfall acknowledges the impacts of our operations on
indigenous assets, and their heritage of cultural significance.
Vattenfall expects its suppliers and partners to comply with indigenous peoples, such as the Sámi community in the areas
Vattenfall considers the rights of the Sámi on project-level,
mainly through active engagement in two-way dialogues.
Policies and governance its Code of Conduct for Suppliers and Partners (CoCfSP). The in which we operate. To mitigate negative impacts, we have
By fostering an open and respectful dialogue, Vattenfall hopes
The senior management responsibilities, policies, and manage CoCfSP includes human rights commitments specifically in established stakeholder engagement processes and Group
to achieve conditions which are mutually beneficial. ment systems which govern social topics (described on page relation to affected communities and indigenous peoples. wide guidelines to respect indigenous peoples’ rights, including
107) also apply to the topic of affected communities. Vattenfall’s
human rights due diligence work in relation to affected commu
nities, including indigenous peoples, is governed through sev
Table 32. Types of communities and impacts
Community benefit Positive
eral policy and steering documents (page 107).
Value chain: own operations and impact Type of community Value chain Impact
downstream (actual) The Human Rights Policy is applicable to all affected com
munities, and the commitments cover all rightsholders through Local communities living around Vattenfall’s own operations Negative impact: impacts from renewable energy
out our full value chain. Rightsholders include, but are not lim our operations developments such as noise, shadow flickering, visual
Vattenfall supports affected communities not only by mitigating
ited to: Vattenfall’s direct employees, employees of suppliers interference, interference with communication
impacts, but also by creating jobs, developing skills and enabling
and contractors, customers, environmental and human rights Positive impact: community development stemming
local supply chain opportunities during project construction and
defenders, and local communities along our value chain. The from project construction and operations, investments in
operation. Projects may also deliver physical benefits, such as community initiatives and inclusive ownership schemes
new roads or other public infrastructure. In consultation with interests of key stakeholders are taken into consideration
affected communities, Vattenfall also invests in community through credible proxies as part of the internal process of policy Communities of indigenous peoples Vattenfall’s own operations Negative impact: impact in reindeer herding due to
d evelopment initiatives, tailored to local needs. Additionally, updates and the human rights policy is sent out to relevant development of renewable energy (wind farms)
shared ownership schemes allow individuals to invest in projects, human rights NGOs. Furthermore, stakeholder interests were
for example, Vesterhav wind farm in D enmark. considered as part of the thirdparty human rights assessment Local communities (including indigenous Upstream supply chain Negative impact: communities impacted by suppliers’
carried out in 2021, through interviews. peoples) in supply chain (non-material) operations, including extraction of metals and minerals
1. For more information see page 82.
Vattenfall Annual and Sustainability Report 2025 117
Sustainability Statement / Social
S3 Affected communities, cont.
reindeer herding rights. We adhere to Swedish laws regulating Targets and metrics
engagement with the Sámi community and commit to free, Vattenfall has no formal targets or metrics for our human rights
prior, and informed consultation processes in activities affect work related to affected communities. While our aim is to con
ing indigenous peoples. Though not project-related, vulnerable tinuously improve, monitor, track, and transparently report on
groups are also taken into consideration as part of Vattenfall’s our ability to manage human rights risks and to have a positive
five-year human rights assessment, described on page 107. impact, it is challenging to develop targets and metrics, mainly
In 2025, Vattenfall adopted internal standards for community due to the difficulties of measuring the effectiveness of our
engagement, applicable in all interactions with affected com engagement activities. For disclosure on how we monitor and
munities. The Group standard outlines minimum compliance track our progress, see our information on general governance
requirements and provides practical guidance on implementa for social topics on page 107.
tion in Vattenfall’s own operations, including the need to under
stand the perspectives of vulnerable groups, such as indige Key actions
nous peoples. In setting the standards, the input of internal key Community engagement at Vattenfall is decentralised across
stakeholders, such as stakeholder managers and project man various markets and business areas. Negative impacts are
agers, has been considered. addressed through community engagement in each project
Currently, no assessment on the effectiveness of our stake and in compliance with local laws. For our own operations, this
holder engagement activities is carried out. Local stakeholders, is relevant in regards to planning, land use, resource manage
including indigenous communities, can express their concerns ment, and environmental impacts. Environmental impacts are
via the project-specific channels mentioned above. In addition, managed through Environmental Impact Assessments.
Vattenfall has a Group whistleblowing channel, where any irreg Vattenfall does not currently have a group-wide mechanism for
ularities may be reported, see pages 124–125 for further details. tracking positive impacts, which are assessed at the project
level. Communities across our value chain experience both
Processes to remediate positive and negative effects (see Table 32 on page 117). The
For general social disclosures on processes to remediate, actions outlined in Table 33 on page 119, demonstrate our
please refer to general section for the social topics as well as efforts in 2025 to manage these impacts through community
the governance section (see pages 107-108 and 124-125). Rem engagement, relevant throughout our operations and value
edy processes, particularly with regard to indigenous peoples, chain.
are carried out on a case‑by‑case basis when needed.
In all interactions with Sámi communities, Vattenfall follows Allocated resources
the principles outlined in the Approach towards Indigenous There is no significant capex or opex allocated for the actions
Peoples in Sweden and strives to respect Sámi customs, tradi beyond resources already included as an integrated part of the
tions, and legal systems. relevant units’ budgets. These are not separately disclosed.
Consideration of these customs, traditions and legal systems
are applied at the project level, including through consultations
with legitimately appointed representatives and negotiations
on appropriate remedy measures. The aim is to agree on
actions that limit and address negative impacts on Sámi liveli
hoods.
Blakliden Fäbodberget wind farm
Vattenfall Annual and Sustainability Report 2025 118
Sustainability Statement / Social
S3 Affected communities, cont.
Table 33. Key actions in 2025 and future actions
Key action Description Scope IROs covered Expected outcome Time horizon
The Cabrach Trust’s Picnic & Vattenfall participated in the Cabrach Picnic & Games 2025, hosted by The Local communities in Huntly, Community benefit Strengthened community ties and visibility of Vattenfall’s long-term Short-term event was
Games 2025 Cabrach Trust – a long-standing beneficiary of the Clashindarroch Onshore Strathbogie, Tap O Noth, and commitment to local regeneration. The event demonstrated the completed in 2025,
Wind Farm Community Benefit Fund. The event is a cross-generational C abrach in Aberdeenshire, fund’s impact, with over £2 million distributed to more than 180 and further long-term
gathering with activities such as Highland Games and Scottish Country Scotland, the UK. groups since 2015. community develop
Dancing, showcasing Vattenfall’s support for heritage restoration, nature ment impacts are
c onservation, volunteer training, and community infrastructure. expected to continue.
Lost Landscape Project Vattenfall is a named partner in the Lost Peatlands Connections Project, Communities in Afan, Neath, Community benefit Empowered communities with increased environmental literacy, Development phase:
a multi-year initiative led by NPTC Countryside & Wildlife to restore habitats Rhondda Fawr, and Upper improved wellbeing, and stronger cultural identity. The YMCA centre March 2023 – March
and reconnect communities with nature and heritage across four Welsh Cynon Valleys; YMCA com upgrade demonstrates tangible benefits of wind energy projects, 2026
valleys. The project engages over 15 rural communities and 25+ schools munity centre; 25+ schools; fostering local resilience and acceptance. The project also aims
through outdoor education, conservation volunteering, health and wellbeing public service hubs; diversity to deliver accredited training, arts-based outreach, and digital Delivery phase:
workshops, heritage skills training, and cultural storytelling. As part of the groups, Wales, the UK. resources, enabling residents to steward their landscapes and March 2026 – March
broader community benefit strategy linked to the Pen y Cymoedd wind farm, p articipate in nature recovery. 2029/30
Vattenfall supported the transformation of a YMCA community centre,
enabling access to educational programmes, recreational facilities, and
family support services in a deprived area.
Accelerated Green Transition During 2025, Vattenfall has been an active stakeholder in AGON, a collabora Stakeholders, including Avoidable negative impacts The objectives and expected outcomes are to counteract Project discontinued
in Norrbotten County (AGON) tive platform addressing challenges related to the climate transition and ommunities in Norrbotten
c of assets or operations on the entrenched positions and accelerate permitting processes through in November, 2025,
a ssociated development projects in Norrbotten County, Sweden. The plat County, Sweden. way of living for indigenous collaboration and dialogue. To achieve this, the focus has been to: as a result of realloca
form was coordinated by the County Administrative Board of Norrbotten and peoples • Test innovative methods that promote coordination and joint tion of funds by the
has brought together stakeholders from various sectors of society – including planning in development projects county administrative
energy companies, municipalities, affected Sámi communities, and academic • Develop a shared understanding and narrative of current board.
institutions. challenges to serve as a foundation for continuous dialogue
• Specifically highlight and integrate the perspectives of Sámi
c ommunities, including those of reindeer herders.
Strengthening collaboration During 2025, Vattenfall has continued to deepen its collaboration with Sámi Sámi communities in Avoidable negative impacts • Reduced misunderstandings and increased trust between o perators Ongoing, adapting to
and compensation models communities.. The focus has been on improving conditions for reindeer northern Sweden, affected of assets or operations on the and Sámi villages evolving conditions.
with indigenous communities husbandry and strengthening long-term partnerships. This includes moving by Vattenfall operations. way of living for indigenous • Agreements enabling wind farm development in reindeer herding
beyond financial compensation to practical remediation measures, such as peoples areas, while ensuring mitigation and compensation for impacts.
land adaptation support, constructive consultation processes, and joint
p lanning. Key aims are to establish two-way communication with verified
information exchange, ensure transparent dialogue, and negotiation pro
cesses, as well as maintaining well-documented, constructive meetings
with affected communities.
Internal Group standards Internal minimum standards on community engagement were created All communities affected by Direct negative effects on Alignment in Vattenfall’s community engagement approach Short-term project
for community engagement in 2025. Vattenfall’s own operations. living s ituation t hroughout business areas and projects and compliance with completed during
regulatory requirements. Enhanced dialogue with communities 2025. Implementa
Avoidable negative impacts and management of negative impacts. tion phase expected
of assets or operations on the to continue long-term.
way of living for indigenous
peoples
Vattenfall Annual and Sustainability Report 2025 119
Sustainability Statement / Social
Entity specific disclosure: Security of supply
Impacts, risks, and opportunities Policies and governance Swedish Energy Markets Inspectorate annually requests the activities that exclude building infrastructure but that can still
Part of Vattenfall Distribution operates as a regulated monopoly input data for SAIDI and SAIFI for all Swedish DSOs. reduce SAIDI. The activities are planned to be implemented
Material IROs1 Type under the supervision of the Swedish Energy Markets Inspec between 2025–2030.
Security of supply of electricity torate. This means that security of supply is regulated by law, Key actions in 2025 and future actions
Negative
Value chain: own operations impact not internal policy. More information about the regulation and Investments in resilient infrastructure Adapted way of working for live-line working
and downstream (actual) its exact scope is available on the Swedish Energy Markets Weather-related hazards such as storms and natural disasters We also focus on changing our ways of working since one way
Inspectorate’s website. The CEO of the electricity distribution can lead to damage to our electrical equipment and cause to reduce SAIDI is to perform more maintenance while power
The demand for a reliable electricity supply continues to rise, business respective legal entity holds ultimate responsbility for power outages for customers. Therefore, a large focus is placed lines are energised, also referred to as live-line working, in con
driven not only by customer expectations, but also by the accel- compliance. The regulation defines clear thresholds for the on building a physically resilient infrastructure. We have invested nection with announced maintenance and new builds. In 2025,
erating energy transition and the electrification of key sectors quality of the service; this includes the maximum outage dura around SEK 700 million in weather-proofing the grid in 2025 we have worked with activities that over time will create condi
such as industry and transport. A stable electricity supply is tion for a customer and the maximum number of outages a and estimate to invest SEK 500–700 million in weather-proofing tions for us to increase the proportion of live-line working and
c ritical to the functioning of essential societal systems, such as customer can experience. The aim is to provide electricity distri per year between 2026–2030, with the purpose to reduce thus reduce the number of customer interruption minutes in
schools, hospitals, and railways. Impacts on the grid such as bution at a reasonable cost. SAIDI. Investments made in 2025 have been estimated to line with regulations and Vattenfall Distributions target. The
extreme weather events can challenge stability. Minimising reduce SAIDI in Sweden, directly contributing to Vattenfall plan of activities will continue to be implemented before the
power outages is therefore a strategic priority. Reducing inter- Processes to manage power outages Distributions target. In 2025, we have also defined end of 2030.
ruptions helps to avoid financial losses, protects infrastructure, Extreme weather and natural disasters can lead to widespread
and ensures continuity for both households and businesses. power outages. To manage such events, Vattenfall Distribution
To meet these demands, a robust electricity grid is essential. has an established crisis organisation with clearly defined roles,
responsibilities, and resources. This structure enables us to
1. For more information see page 82. respond quickly, minimise outage duration, maintain clear and
transparent communication with customers, and ensure safe
working conditions during restoration efforts. It is essential for
IRO interaction with strategy and business model us to continuously minimise risks and work proactively to
Vattenfall Distribution business plays a vital role in Sweden’s secure the electricity grid.
energy infrastructure, distributing nearly half of all electricity
generated in the country. With approximately one million cus Targets
tomers, we operate one of Sweden’s largest electricity distri Vattenfall Distribution is committed to accelerating fossil free
bution networks. Through continuous investment, proactive dom for customers through sustainable electrical infrastructure.
maintenance, and monitoring, we ensure a stable and secure To achieve this ambition, we have set a target to increase elec
electricity supply for our customers. Our commitment to reli tricity supply security from 99.97 percent to 99.99 percent by
ability and sustainability supports both households and busi 2035. This includes halving our SAIDI (System Average Inter
nesses, contributing to a resilient energy system. ruption Duration Index) – the average outage duration per cus
Ensuring security of supply is thus a core part of our strategy, tomer – from approximately 150 minutes in 2020 to 75 minutes
business model, and risk mitigation effort within Vattenfall Dis by 2035. The target is decided in the management process,
tribution (see pages 42–43). The disclosures in this section where we evaluate external trends, investment plans, expecta
include the Swedish Distribution System Operators (DSOs). The tions of c ustomers and stakeholders, and update the business
ongoing energy transition, driven by increased electrification units’ scorecards and performance indicators.
and the integration of decentralised renewable sources such as
wind and solar, is placing growing demands on the electricity Metrics
grid. This shift introduces new complexities in maintaining a In 2025 the outcome of SAIDI was 153 minutes (123 minutes
high security of supply. Among the highest threats to security in 2024). Security of supply or reliability can also be measured
of supply are weather-related disruptions. Already today, with SAIFI (average number of interruptions that a customer
storms, heavy snowfall, and other events represent some of the experience in a year). In 2025, the outcome of SAIFI was 1.7
most significant risks within distribution. Looking ahead, these (1.9 in 2024). A 10-year overview of the SAIDI and SAIFI can be
challenges are expected to grow in frequency and severity. found on page 147. Methodologies and full definitions of SAIDI
Vattenfall is actively working on weather-proofing assets to and SAIFI are explained in the Sustainability notes under
increase the resilience of our networks (see page 43). accounting policies for Security of supply (see page 132). The
Vattenfall Annual and Sustainability Report 2025 120
Sustainability Statement / Social
Non-material social disclosures: Diversity, equity, and inclusion
At Vattenfall, the commitment to a fossil‑free future goes hand in Governance
hand with a commitment to people. Diversity, equity, and inclu Our commitment to DEI is anchored at the highest levels of the
sion (DEI) are essential for shaping a sustainable future that organisation through a structured and accountable governance
reflects and benefits all communities. These principles are model. Vattenfall’s Chief Diversity Officer sits within our Executive
embedded in Vattenfall’s core business strategy and corporate Group Management team ensuring sponsorship and visibility at
culture, influencing how we build our teams, foster innovation, and the top-management level. This position rotates every two years,
make a positive impact. We believe that diversity, equity, and ensuring we are embedding diversity and inclusion into the core
inclusion are fundamental to strengthening both our strategy and of our corporate culture and all decision-making processes.
the way we work. To make well‑informed decisions, we need to At the centre of our diversity, equity and inclusion efforts is a
incorporate a wide range of perspectives, which requires collabo dedicated DEI Director who leads the DEI Office. Together, they
ration across business areas, regions, and disciplines. Equally are responsible for governing and steering DEI across Vattenfall
important to our culture is ensuring that everyone feels included by developing and implementing company-wide strategies,
by recognising and supporting individual identities and the ensuring that inclusive practices are integrated throughout all
unique contributions each person brings. Vattenfall’s vision is to business areas and aligned with our sustainability goals.
be recognised as one of the most inclusive workplaces in the This governance is complemented by the activities of our
energy sector and to create an environment where everyone can employee resource groups1, which support the engagement and
thrive and actively contribute to a more sustainable future. rollout of DEI initiatives across all of Vattenfall’s markets.
Strategy Key actions
Vattenfall’s strategy in organising and coordinating DEI efforts Vattenfall strengthened its commitment to DEI by advancing tar
focuses on a combination of the systemic introduction of DEI via geted strategies for each dimension, supported by DEI positive Vattenfall employees
programmes and processes. We also actively participate in and action plans and a comprehensive review of relevant legislation. represent
94
show support on significant calendar dates, such as holidays and This strategy fosters a culture where diverse perspectives drive
pride weeks. innovation, performance, and sustainable growth. Employee
Vattenfall recognises six dimensions of diversity, which en engagement was a critical enabler of progress. In 2025, we
compass Gender & Sexual Orientation, Ethnicity & Worldview, recorded more than 6,898 participations in DEI‑related initiatives
Socio-economic Background, Seen & Unseen Disability, Age & across the organisation, including workshops, awareness cam
Generation as well as Family & Relationships. We acknowledge paigns, and the observance of key diversity milestones. This level known nationalities
that these characteristics do not exist in isolation. They intersect of participation demonstrates the organisation’s commitment to
and interact, shaping unique individual experiences. This inter fostering an inclusive culture and integrating DEI principles into For more key metrics about
sectional perspective underpins our commitment to creating an daily operations. Key actions are outlined in Table 35 on page 123.. our workforce, see page 110
environment where everyone feels valued and empowered to
contribute.
2025 recognition highlights Policies and governance DEI index
• 62.4 percent score in the Workplace Pride Global Benchmark Our Diverse Energy Networks
88% 2
1
– up 12.4 points since the last participation in 2021 are supported by 2,439
• European Leader in Diversity by FT–Statista: 4th in the Utilities sector members
• Gold Seal Pride Champion by UHLALA Group (Germany) of employees say they
Women in Energy1 grew to
over 2,687 members in 2025 feel included at work
• Gold Accreditation Committed to Equality – C2E (UK) 1. Employee resource groups working closely with the DEI Office: Diverse Energy Networks,
• Client of the Year Neurodiverse Accreditation by Unicus and Auticon Women in Energy, Vattenfall Next Generation, and MegaWatt.
2. The DEI Index is a metric based on GDPR-compliant data from recruitment and the anonymous
employee engagement survey My Opinion, capturing employees’ perceptions of managers
s upport and drive DEI as well as their sense of inclusion and freedom to be themselves at work.
Vattenfall Annual and Sustainability Report 2025 121
Sustainability Statement / Social
Non-material social disclosures: Diversity, equity and inclusion, cont.
Targets and metrics data is not adjusted for variations in types within a given com Figure 14. DEI metrics
At Vattenfall, advancing gender equality is a key part of building plexity level, nor for individual factors such as performance,
a more inclusive and sustainable energy future. As a signatory of skills, or experience.
the Equal by 30 1 initiative, Vattenfall is committed to creating Gender all employees2
equal opportunities for all employees, fostering diverse leader Processes
ship, and embedding inclusion across our operations. As part of Vattenfall actively reviews its processes to embed diversity,
our long-term commitment, we have set a strategic target in 2018 equity and inclusion in the way we work. 2025 was a challeng
to achieve a 40 percent female leadership ratio by 2030. This ing year for DEI, shaped by political and societal shifts, yet we Male, 68%
goal reflects our dedication to driving meaningful change and remain committed to ensuring all employees feel included, safe, Female, 31%
Non-binary, 1%
ensuring gender balance at all leadership levels. and protected against discrimination.
With targeted action plans with our business areas and
Staff Functions, we work to increase and strengthen the Processes for engagement
representation of women in management roles. In 2025, we We continue to strengthen internal governance and data
c onsolidated female representation in leadership positions systems while monitoring legislation to improve accountability.
with 34 percent see Figure 14 “Female managers and hires”. We Increasing diversity in technical roles remains a challenge due
remain committed to strengthening gender balance going for to a limited Science, Technology, Engineering, and Mathematics
ward. (STEM) talent pipeline, and we are expanding outreach and Age2
The female manager ratio is calculated as the number of collaboration to attract a broader range of candidates. These
female managers divided by the total manager population, efforts reflect our commitment to fostering a culture where inclu
excluding acting and double-hatted roles. Data comes from sion and collaboration for impact are part of everyday practice. –19, 0%
Vattenfall’s HR system. The metric uses headcount, not FTE, and 20–29, 11%
30–39, 27%
includes all gender categories. While consistent, it does not Partnerships and frameworks
40–49, 27%
reflect part-time roles or distribution across managerial levels. Vattenfall collaborates with several partners and engages in
50–59, 24% At Pride parades, we walk the talk on inclusion
Gender pay equality is a fundamental element of Vattenfall’s different forums to further our DEI work. These include: 60+, 11%
broader commitment to diversity, equity, and inclusion. We are • Global Diversity, Equity and Inclusion Benchmarks (GDEIB)
committed to fair and equitable pay practices and regularly Vattenfall’s participation in Pride parades across
• Equal by 30 Europe, in Berlin, Amsterdam, Stockholm, and
review roles and pay structures across genders within the organi
sation to identify and address unjustified pay differences where • European Diversity Charters Katowice, reinforced our commitment to LGBTQ+
and when they occur. The gender pay gap data (see Table 34) is • Diversity Factory inclusion in 2025. By actively engaging in these
one of several tools we use to support this work. • MittLiv Female managers and hires events, we demonstrated our dedication to fostering
The gender pay gap data presented reflects the average pay • Unicus a workplace culture where everyone is represented,
difference across genders in each country, comparing full-time % respected, and empowered to contribute to a more
• UHLALA Group
base pay for employees within the same job complexity level. The 50 43 sustainable future for all.
• Kraftkvinnorna 37 38 37 34
40 33 34
• Niya 30 31
30 24
Table 34. Unadjusted gender pay gap • Leqture
20
• Workplace Pride
Country Unadjusted gender pay gap 2025 10
Sweden 0.9% 0
2018 2022 2023 2024 2025
Germany 3.2% Base year
Netherlands 4.5% % of female manager hires Target
Denmark 3.0% % of female managers
United Kingdom 5.5% 1. Equal by 30 is a global commitment to gender equality in the energy
sector. Vattenfall joined in 2018.
Poland 2.3% Read more: Diversity, equity and inclusion 2. Data reflects voluntary, anonymous self-identification in the employee
Finland 2.5% are fundamental to our success engagement survey.
Vattenfall Annual and Sustainability Report 2025 122
Sustainability Statement / Social
Non-material social disclosures: Diversity, equity and inclusion, cont.
Table 35. Key actions in 2025 and future actions
Key action Description Scope Expected outcome Time horizon
Gender and sexual orientation Vattenfall advanced gender equity through strategic initiatives and measurable goals. Continued investment in the Women in All Vattenfall markets; leadership A leadership culture where 40 percent of managers Ongoing;
Energy network and the launch of the EMPWR Women programme supported professional development, confidence-building, teams; employee networks. are women by 2030 (connected to our target), and milestone 2030
and inclusive leadership. LGBTQ+ inclusion was strengthened through targeted audits and inclusive data practices. The LGBTQ+ employees feel recognised and supported.
employee survey again featured a third gender option, ensuring recognition of non-binary identities. Pride participation
expanded across Sweden, the Netherlands, Germany, and Poland, reflecting a growing commitment to visibility and allyship.
Ethnicity and worldview The DEI Office started a process to improve nationality data collection, aiming for a clearer view of workforce representation. All employees; DEI Office; cultural A workplace where cultural diversity is visible and Ongoing
The DEI calendar was broadened to reflect a wider range of cultural observances. Key celebrations – including Ramadan (with events across major markets. valued, and representation of data drives informed
an office Iftar), Lunar New Year, and Keti Koti (with a documentary screening) – highlighted employee diversity. Vattenfall Eth action.
nicity Days, held from late October to early November, featured events marking Black History Month, Diwali, and other cultural
milestones, fostering cross-cultural understanding and affirming diverse identities.
Socio-economic background Vattenfall strengthened inclusive recruitment practices to reduce barriers for candidates from disadvantaged socio-economic Recruitment teams; external Equal access to opportunities, ensuring a socio- Ongoing
backgrounds. In collaboration with external organisations, the DEI Office rolled out an upskilling initiative aimed at improving organisations; mentoring networks. economic background is never a barrier to success.
access to career opportunities for individuals from underrepresented socio-economic groups, and a mentoring programme to
give access to professional networks and career guidance.
Seen and unseen disability Neuroinclusion remained a key focus in 2025. Vattenfall launched the NeuroConfident Managers and NeuroPositive Ambassa Sweden, the Netherlands, and other A culture where neurodiverse talent thrives, and Ongoing
dor Accreditation, enhancing awareness and capability across teams. To deepen the understanding of neurodiverse experi major markets; managers; ambassa communication barriers are dismantled.
ences, VR-led training sessions were offered in Sweden and the Netherlands. In addition, sign language courses were piloted dors; employees.
across all five major markets to support communication with colleagues, friends, and family members facing auditory chal
lenges, with 133 employees enrolling.
Age and generation Vattenfall promoted intergenerational inclusion through digital speaker events and learning formats focused on generational All employees; DEI Office; A workplace where every age group collaborates and Ongoing
diversity in the workplace. These initiatives encouraged dialogue, mutual understanding, and collaboration across age groups Next Generation Council. feels valued, fostering innovation and mutual respect.
– empowering employees at every career stage. To strengthen inclusive listening practices, the DEI Office partnered with the
Next Generation Council to explore employee perceptions of internal feedback mechanisms. A company-wide survey was con
ducted with a particular focus on younger employees, aiming to ensure that listening approaches reflect the full spectrum of
generational perspectives.
Family and relationships In 2025, awareness campaigns and DEI workshops emphasised the importance of recognising and respecting diverse Selected markets; DEI Office; A culture that embraces all family dynamics, creating Ongoing
relationship dynamics in the workplace. In May, the International Day of Families was celebrated, reinforcing the value of employee engagement teams. a sense of belonging beyond work.
family inclusion through dedicated Family Day events in some markets.
DEI training and mentoring In 2025, training and mentoring were central to our DEI efforts, playing a vital role in embedding inclusion into our culture All employees; hiring managers; A workforce equipped with inclusive skills and Ongoing;
and everyday practices. This included: leaders; Sweden-specific mentoring leadership accountability, embedding DEI into programme
• understanding our DEI Dimensions – video series: Introduced short, accessible videos explaining each diversity dimension programme. everyday decisions. milestones
and linking DEI goals to everyday actions and decisions
• DEI Lab – Fostering Diversity, Equity & Inclusion: An updated version of our DEI e-learning was launched for all employees,
reinforcing inclusive practices across the organisation
• Vattenfall Xplore & Engage: We hosted 51 live DEI learning sessions via Xplore (full-day streaming) and Engage (single-topic)
platforms, led by subject experts. To extend access, we launched the DEI Content Hub, offering all recorded sessions
on-demand for flexible, continuous learning across the organisation
• inclusive leadership journey: This programme continues to be promoted since its inception in 2023, deepening DEI aware
ness and leadership accountability
• Licence to Hire (L2H): This programme focusing on inclusive recruitment practices continued to expand across the organi
sation since the launch in 2024, reaching a completion rate of 79 percent. An improved version of the training was rolled out
in April 2025, further strengthening the capabilities of hiring managers and recruiters
• mitt Livs Chans Mentoring Programme (Sweden): In partnership with Mitt Liv, Vattenfall launched a mentoring programme in
Sweden to support individuals from underrepresented backgrounds and promote more inclusive labour market practices.
Vattenfall Annual and Sustainability Report 2025 123
Sustainability Statement / Governance
Governance
G1 Business conduct
Vattenfall believes that a sound corporate culture goes
far beyond basic legal compliance. Upholding high Impacts, risks and opportunities IRO interaction with strategy and business model
ethical standards is fundamental to running a successful Material IROs1 Type Vattenfall’s corporate culture is a key driver of our strategy and
business, and this commitment is embedded in our business model, while other governance‑related topics currently Information on non-material topics
Code of Conduct and Integrity. As a company with oper‑
Good corporate culture Positive have limited influence. Our efforts to achieve our purpose as Other sub‑topics within G1 Business Conduct are
Value chain: upstream, own operations impact well as efforts to ensure engaged employees are aspects of assessed as non‑material. For corruption and bribery,
ations crucial to society and ambitious goals for the (actual)
and downstream ensuring a continued positive impact from our culture. We con‑ this conclusion reflects the strength of existing legisla‑
future, we recognise that our actions reflect on our owner,
the Swedish state, and shape our reputation. By living tinue to monitor potential negative impacts and maintain a tion and business practices in the geographies where
Vattenfall’s corporate culture is a material topic as it is the robust system for education, prevention, and information related we operate. Vattenfall has measures in place – such
our values and consistently acting with integrity, we
essence of what defines us as a company and unites us towards to integrity risks. Our proactive anti‑corruption efforts support as mandatory online and in‑person training – to ensure
strengthen trust in Vattenfall and reinforce the founda‑
a common goal. Vattenfall’s goal of fossil freedom, and our our zero‑tolerance policy in this area. compliance, but their impact materiality is limited
tion for strong partnerships and sustainable success. efforts to achieve that, has a strong effect on our business inter- Looking ahead, we recognise that the materiality of corrup‑ given the low‑risk environments in which we conduct
nally and externally. We believe our culture, and a clear under- tion‑ and bribery‑related risks may increase. Digitalisation is cre‑ business.
standing of our core values, engages employees and leads to ating new potential risk areas, and evolving relationships with Political engagement is likewise considered non‑
G1 Business conduct ......................................................................... 124 positive interactions with communities, customers and suppliers. suppliers – particularly amid resource scarcity and the potential material. As a state‑owned company with an arm’s‑
Non-material governance disclosures for heightened competition for rare materials (see pages 102– length relationship to the government, Vattenfall has
→ Tax .......................................................................................................... 126 105) – may further elevate the importance of integrity manage‑ no direct influence over policy. One Board Director is
Poor corporate culture Negative ment in the future. employed by the government offices. Vattenfall does
Value chain: upstream, own operations impact
(potential) not provide financial contributions to political parties
and downstream
Policies and governance or candidates. While the company engages in lobbying
The senior management responsibilities, policies, and manage‑ on energy policy, this is mainly conducted through
A poor corporate culture could lead to lack of trust and loss
ment systems which govern social topics (see page 107) also industry associations and typically involves long, slow‑
of transparency, as well as increase the risk of corruption and
apply to the topic of governance. The relevant policies for moving processes.
bribery. However, corruption and bribery as a topic itself is not
establishing and promoting corporate culture are continuously
deemed as material for Vattenfall as is further explained in the
grey box to the right on this page.
updated to mitigate risk and provide clear and up-to-date best
1. For more information see page 82.
Figure 15. Whistleblowing process at Vattenfall
Right to remain anonymous
Reports to the Whistleblowing
function can be submitted anony-
mously. It is strictly prohibited for
all employees and other Vattenfall
representatives to attempt to An individual submits The national Whistleblowing coordinator at Vattenfall The investigators gather If misconduct or deficiencies are
identify an anonymous informant, a report to the Whistle- confirms receipt of the report. If the reported concern and analyse relevant c onfirmed, relevant follow-up measures
or to engage in any sort of retalia- blowing function, for requires investigation, a team is appointed. Investiga- information, for example, are taken, such as improvements to
tion against the informant in example through the tions are typically carried out by auditors from by seizing documents and internal working procedures, steps
a whistleblowing matter.
online Whistleblowing Vattenfall’s Group Internal Audit, People & Culture, conducting interviews. governed by labour laws for individuals
channel. Legal or Corporate Security & Resilience departments. or termination of contracts.
Vattenfall Annual and Sustainability Report 2025 124
Sustainability Statement / Governance
G1 Business conduct, cont.
practice. Corporate culture is evaluated in several different investigation function comprised of employees from Legal, ance topics. It also lists the minimum standards that suppliers Key actions in 2025 and future actions
ways, further described below. Internal Audit, Corporate Security & Resilience, and People & and partners should apply to their own operations and supply Vattenfall Integrity Programme (VIP) trainings
Vattenfall’s internal Code of Conduct and Integrity (CoC), with Culture. The investigations teams work independently and have chains. Vattenfall’s suppliers and partners should always strive During 2025, 1,974 employees completed the VIP. In addition,
the CEO as the sender, outlines Vattenfall’s work to establish, all means necessary to conduct investigations thoroughly, to apply both international and industry best practices. trainings were tailormade and conducted with targeted stake‑
develop, promote, and evaluate a positive corporate culture. It is promptly, and objectively. It is strictly prohibited for Vattenfall holders within Vattenfall. Figure 16 demonstrates the number
the core of all work performed at Vattenfall and comprises what employees and other representatives to attempt to determine Targets and metrics of managers and other key personnel trained since 2021.
is expected from employees (including temporary staff) with the identity of a whistleblower. Similarly, Vattenfall prohibits Corporate culture consists of many aspects but an ultimate The VIP is a group-wide training programme primarily for
regards to business integrity and corporate culture. In the CoC, retaliation of any type against a whistleblower. The EU Whistle‑ result of a positive culture and buy-in to our core values is the managers down to three levels below the EGM, as well as for
reference is made to policies with more detailed information blowing Directive ((EU) 2019/1937) has been implemented in all engagement of employees. Vattenfall measures employee other employees with relevant external contacts on a regular
and instructions regarding, among other things, competition, countries in which Vattenfall operates and is applied in all engagement through the Engagement Index, which is defined basis, such as competitors, suppliers, business customers and
anti-corruption, and conflicts of interest. Contractors and con‑ Vattenfall markets. We aim to interpret the directive generously as the degree of employees’ connection to their organisation, public authorities, as well as employees who define specifica‑
sultants are not covered by the CoC, but fall within the scope of and according to the strictest national implementation, in order demonstrated by committed efforts to achieve goals (being tions for procurement processes. These target groups have
the Code of Conduct for Suppliers and Partners, described on to have a consistent approach throughout the organisation. At engaged). Evaluating engagement is one aspect of measuring been identified based on their risk exposure.
page 107. the operational level, we offer direct contact with project man‑ progress, identifying risks and finding areas of development The main purpose of the programme is to ensure that the
The key principles of the internal CoC are Open, Active, Posi‑ agers, stakeholder engagement managers or other staff, to and improvement connected to our corporate culture. A target participants understand the integrity standards Vattenfall
tive, and Safe. How these principles are implemented and what raise concerns. Reported incidents are tracked and monitored on Engagement Index has been set centrally, and it covers all expects of them and to ensure a common compliance culture
they mean in terms of expectations on employees in practice is and subject to lessons-learned processes to ensure continu‑ active employees. The index is based on the employee survey, throughout the Group. The VIP is an important training pro‑
further defined in internal instructions in the Vattenfall Manage‑ ous improvement within the company. My Opinion, where a number of relevant questions are weighted gramme to raise awareness within the integrity field among
ment System. The CoC has been communicated throughout The Vattenfall Integrity Programme (VIP) mitigates integrity together. In 2025, the Engagement Index was 81 percent which managers and other relevant target groups at Vattenfall, but
the Group, and is available on the intranet in several language related risks by bringing repetitive knowledge and awareness is a decrease by 1 percent compared to 2024. In the base year also for the integrity team to get a better understanding of the
versions in the countries where Vattenfall has business opera‑ regarding competition law, anti-corruption, conflict of interest, 2019 it was 69 percent and the target for 2025 was set to actual and perceived integrity risks across Vattenfall.
tions. Furthermore, information about the CoC is provided in procurement, and bribes to all managers on EGM level (N) to 75 percent. For 2030, the target is set to 86 percent, and the
connection with new hiring and training. The most senior three levels below (N-3), as well as employees who have regular target definition has been adjusted to include more questions. Integrity survey
f unction responsible for ensuring compliance with the CoC is outside contact for example with suppliers, customers, and Vattenfall uses an annual Integrity and Competition Law Com‑
Vattenfall’s CEO and Executive Group Management (EGM). The trade associations. These trainings are essential to keep integri‑ pliance Survey to monitor risks. The survey is completed by
Integrity organisation provides their expertise to management ty-related matters high on the agenda and continuously dis‑ approximately 350 managers yearly. The purpose of the survey
through, for example, trainings. cussed by managers and employees in business units and is to make a risk assessment of potential integrity-related
Vattenfall works to identify, report, and investigate concerns teams within Vattenfall. The extended three hour in-person Figure 16. Vattenfall Integrity Programme1 issues within Vattenfall and to raise awareness of the principles
of unlawful behaviour or behaviour failing to uphold the CoC. An training is mandatory every three years for managers and Number of managers and other key personnel trained in the CoC and other internal instructions. In 2025, the survey
Integrity survey is conducted annually and followed by targeted employees with regular contacts with competitors and suppli‑ was circulated to 390 managers, of which 90 percent com‑
8,234
individual interviews if needed. The yearly group-wide My Opin‑ ers (such as procurement). The procurement organisation has pleted the survey.
ion survey (see page 28) and the, for managers, mandatory been identified as most at risk in respect to corruption and brib‑
Integrity survey are important tools to measure progress, iden‑ ery because of the regular supplier contacts and position to Policy updates
tify risks, and find areas of development and improvement. award contracts. A “four eyes principle” is applied in all procure‑ Total trained through In 2025, internal instructions and guidelines were updated to
Employees are encouraged through training and by manage‑ ment activities. In addition, all new employees at Vattenfall take Vattenfall Integrity ensure a better internal understanding of Vattenfall’s ethical
ment to speak up about ways of improving the corporate cul‑ a mandatory e-learning course on the content and principles of Programme since 2021 2,119
1,974 standards and legal requirements.
ture as well as if they witness conduct that is inconsistent with the CoC.
the CoC. Employees and external stakeholders can also report To support Vattenfall’s responsibility and commitment to act 1,643 Other information and allocated resources
1,494
suspected or observed breaches of the CoC, internal rules, and sustainably, our operations are guided by our company philoso‑ In 2026 we will continue to focus on strengthening Vattenfall’s
the Code of Conduct for Suppliers and Partners to the Whistle‑ phy and core values. These responsibilities extend beyond our corporate culture by raising awareness and monitoring risks.
blowing f unction. own activities to include our entire supply chain. Vattenfall’s 1,004 There is no significant capex or opex allocated to these
Vattenfall has implemented a whistleblowing system that approach is anchored in the Code of Conduct for Suppliers and actions beyond resources already included as an integrated
complies with all relevant legislation. The whistleblowing pro‑ Partners. The purpose of this code is to safeguard that Vattenfall’s part of the relevant units’ budgets. These are not separately
cess at Vattenfall is explained in Figure 15 on the previous page. suppliers and partners share the same values as Vattenfall disclosed.
Reports can be submitted anonymously through an encrypted when it comes to positive corporate culture and sustainability. It
system, or directly to a national whistleblowing coordinator or defines Vattenfall’s requirements and expectations when it 1. Entity-specific
Internal Audit. Incidents are investigated by an independent comes to environment, social, and human rights, and govern‑ metric. 2021 2022 2023 2024 2025
Vattenfall Annual and Sustainability Report 2025 125
Sustainability Statement / Governance
Non-material governance disclosures: Tax
Vattenfall regards taxes as an important component in our reviewed from a tax perspective and roles and responsibilities reported in Vattenfall’s income statement for 2025 amounted reviewed the adherence to the Tax policy in the year between
commitment to grow sustainably, responsibly, and in a socially are set up to handle this. Vattenfall does not and will not have any to SEK 7.8 billion whereof corporate income taxes SEK 1.9 bil‑ the Board meetings. We have then concluded that we do not
inclusive way. Vattenfall handles its taxes in a compliant and business activities in countries listed as tax havens by the EU or lion. Vattenfall’s effective tax rate in 2025 was 24.2 percent, conduct any aggressive tax planning activities nor have any
efficient way and aims for increased tax transparency. the OECD. Furthermore, Vattenfall does not and will not conduct expressed as a percentage of consolidated profit before tax. business activities in countries listed as tax havens.
any aggressive tax planning activities. Vattenfall aims for an open This corresponds to SEK 6.3 billion. We continue to support the trend towards more tax transpar‑
Policies and governance and transparent relationship with the tax authorities and to be A third item related to total tax contribution are so-called ency and to that end participate in various relevant projects and
The Group and Country Tax functions ensure that the Group’s transparent towards other external stakeholders. collective tax which is the largest amount of tax payments. networks, such as:
business activities are conducted responsibly, proactively, and A collective tax is where we as a company collect tax revenues • Reaccreditation of The Fair Tax Mark, an independent
in full compliance with applicable laws and regulations. The Metrics on behalf of the local tax authority. These taxes have no finan‑ verification that demonstrates our commitment to
Group Tax function reports on tax policy matters and provides For 2025, Vattenfall has submitted its country-by-country cial effects on Vattenfall but are regulated in specific regula‑ responsible tax conduct
updates on tax regulations to the Board of Directors and Audit reporting, as required by law in all of the countries in which we tions. The main collective taxes are value added tax, the
Committee. The Audit Committee receives quarterly updates operate. Our business generates material tax revenue for the employee tax on employment and energy tax on consumption. • Process for implementation of the minimum taxation rules
on the tax position of Vattenfall Group. Vattenfall’s tax policy is local authorities in the countries in which we operate. In addi‑ • Specific arrangement regarding that the Tax system can be
approved by the Board of Directors on a yearly basis. tion to corporate income tax and the specific so-called Trade Key actions in 2025 and future actions used as an enabler for the energy transition.
Vattenfall’s Tax Policy is to focus on tax compliance and tax tax in Germany (a municipality tax), Vattenfall pays operational Vattenfall has confirmed, with the Board of Directors’ approval,
efficiency. All material business transactions shall proactively be taxes on production, employment, and property. Total taxes the Tax policy in December 2025. In this process we have
Figure 17. Total taxes in 2025, per tax type Table 37. Total taxes paid, by type and country 2025
Nether-
SEK million Sweden Germany lands UK Denmark Finland France Norway Poland Total Frameworks, partnerships, and standards
Personnel-related taxes 1
2,943 642 501 75 0 6 42 0 60 4,269 • The EU Public Country-by-Country Directive ((EU)
SEK Personnel-related
Personnel-related taxes,taxes,
55% 55%
7.8 Property taxes, Property taxes 1,237 2 29 111 0 10 0 0 0 1,389 2021/2101)
Property taxes, 18% 18%
Income
Income taxes,
taxes, 25%25% Income taxes2 1,098 268 –137 757 –85 –14 14 0 10 1,911 • The Fair Tax Mark accreditation
Other taxes, 3% 3%
billion Other
Nuclear
taxes,
taxes, 0% 0%
Other taxes 125 –3 75 0 0 0 0 0 0 197
• Dutch Tax Covenant model and framework
Nuclear taxes, Nuclear taxes 0 0 0 0 0 0 0 0 0 0
Total taxes paid 5,403 909 468 943 –85 2 56 0 70 7,766
1. Including social security costs. Read more
2. D oes not include deferred taxes. The income taxes accrued in the income statement amounts to SEK 4,404 million, see Note 12 to the consolidated
accounts. The paid tax amounts are equal to the paid tax in the cash flow statement and consists mainly of preliminary tax payments but also refunds • Vattenfall’s Tax Policy
and additional tax payments for the previous years. The difference between income taxes according to P/L and paid tax according to cash flow state‑
ment of SEK 2,493 million are mainly due to lower preliminary tax payments during 2025 and tax refund in Sweden and the Netherlands relating to pre‑ • See Note 12 to the consolidated accounts, Income
vious years. taxes, for more financial tax related information.
Table 36. Total taxes paid by country
Tax history, by country Table 38. Other related information 2025
SEK Nether- Nether-
million Sweden Germany lands Other Total SEK million Sweden Germany lands UK Denmark Finland France Norway Poland Total
2025 5,403 909 468 986 7,766 Employees, FTE 11,557 3,453 4,124 480 631 93 66 0 466 20,869
2024 5,346 1,365 –80 1,140 7,771 Tangible assets other than cash 183,406 25,745 53,138 14,414 25,382 1,203 2 0 48 303,338
20231 4,388 4,325 –145 912 9,480 Revenues from third party 63,611 103,460 53,223 1,217 6,871 1,660 3,873 795 0 234,710
20221 2,155 1,290 2,069 3,294 8,808 Profit/loss before tax 14,957 4,819 9,711 4,583 3,967 97 93 0 35 38,262
1. The historical data has been adjusted to clarify actual taxes paid
strictly in a given year compared to previously published.
Vattenfall Annual and Sustainability Report 2025 126
Sustainability statement / Sustainability notes
Sustainability notes
Accounting policies and notes
The sustainability notes provide further details of
Vattenfall’s sustainability disclosures. The notes E1 Climate change . 127 (unintentional releases of gases) are directly measured and cal- used by Vattenfall are forestry residues and demolition wood,
constitute a continuation of the General information, E4 Biodiversity and ecosystems 129 culated at the facility. but there are also renewable waste and high grade wood fuels.
Environmental, Social, and Governance sections of E5 Resource use and circular economy 131 The vast majority of Vattenfall’s Scope 1 emissions are linked These sources are renewable since the main country of origin,
the sustainability statement. S1 Own workforce . 132 to fossil emissions also covered by EU ETS and follow relevant Sweden, continues to have a substantial net uptake for the
S2 Workers in the value chain 132 national standards and requirements. These include both cal- LULUCF sector according to 2024 data from the Swedish
Accounting policies and notes ........................................................... 127 Entity-specific: Security of supply 132 culations based on fuel volumes and actual measurements Environmental Protection Agency (Naturvårdsverket) (updated
EU Taxonomy notes and tables ......................................................... 133 depending on national requirements. Assurance is done as part numbers for 2025 are expected later in 2026).
ESRS content index ....................................................................................... 141
of EU ETS revisions.
E1 Climate change f. Energy consumption
ESRS disclosure requirements
a. General notes on GHG accounting c. Indirect emissions (Scope 2) Energy consumption is reported based on the same consolida-
incorporated by reference ...................................................................... 143
Our GHG accounting is aligned with our financial reporting Scope 2 emissions are reported based on the GHG Protocol tion approach as for GHG emissions (GHG Protocol) in line with
Datapoints that derive from other EU legislation .............. 144
approach. We apply a consolidation approach based on finan- and include indirect GHG emissions from the generation of elec- ESRS requirements (see section a on this page and Table 8 on
Ten-year overview of sustainability data ................................... 146
cial control, ensuring a consistent operational boundary for tricity, heat, and cooling purchased and consumed by Vattenfall. page 92). Energy-related information is a mix of primary fuel
ESG ratings .......................................................................................................... 148
identifying and categorising data in line with the Greenhouse Market-based emissions are calculated using the total pur- consumption that is used for production of heat and electricity,
Auditor’s assurance report .................................................................... 149
gas (GHG) Protocol. This means that we consolidate 100 per- chased volume. For district heating and cooling emissions and final energy consumption through purchased electricity,
cent of the GHG emissions of all entities Vattenfall operationally linked to use in offices and buildings, grid specific emission fac- heat, steam, and cooling. Energy consumption is not offset and
controls and that any sold assets are not included in Vattenfall’s tors are used. All fossil-free energy as tracked by using Guaran- energy that is sourced within Vattenfall’s organisational bound-
historical emissions. There have been no significant changes in tees of Origin and energy from internal production/contracts ary is not double counted. Underlying data includes assurance
the reporting scope nor in the definition of our upstream and (since they are already included in Scope 1) are counted as zero. linked to national requirements as well as the EU Emissions
downstream value chain. Location-based emissions are calculated using the total pur- Trading System (2003/87/EC) and Energy Audits under the EU
In 2025, we divested the Rostock waste incineration plant in chased volume for own use and all electricity purchases are Energy Efficiency Directive ((EU) 2023/1791).
Germany and Vattenfall Networks Ltd in the UK. Together, these linked to a country specific production mix emission factor.
divestments represent less than five percent of our base-year Locally produced electricity consumed directly on site is not g. Activities in high climate impact sectors
emissions (2017), which is the threshold that triggers a rebase- used for calculations of location-based Scope 2 emissions, the The energy sector is classified as a high climate impact sector
lining. In 2025, we also signed an agreement to divest the basis for this is to avoid double counting between Scope 1 and according to the ESRS. High climate impact sectors are sectors
Velsen condensing power plants in the Netherlands, with own- Scope 2 emissions. listed in Sections A to H and Section L in the EU Regulation
ership transferred in January 2026. This will trigger a rebaselin- on statistical classification of economic activities ((EC) No
ing in 2026. Gas volumes sold to companies previously owned d. Indirect GHG emissions (Scope 3) 1893/2006). All Vattenfall’s activities fall under Section D Elec-
are not yet included in the target nor in the actuals (2.4 MtCO2e) Scope 3 emissions are reported based on the GHG Protocol, tricity, gas, steam and air conditioning supply. Thus, all data on
but will be incorporated when we conduct the rebaselining where the accounting is split into 15 subcategories. See Table energy consumption and energy intensity based on net revenue
in 2026. 38 on page 128 for information on methodologies used. (page 92) are associated with high climate impact sector activi-
We apply internationally acknowledged emission factors. We ties. The net revenue data is reported in accordance with the
use the Global Warming Potential 100 based on the IPCC AR6 e. Biogenic emissions Scope 1, 2, and 3 accounting standards requirements applicable for the financial
values. Direct carbon emissions from burning biomass is reported out- statements and is equal to the value for turnover that is reported
side of Scope 1, 2, and 3, as per the GHG Protocol. For Scope 1, as a part of EU Taxonomy reporting (pages 84 and 137–138).
b. Direct GHG emissions (Scope 1) emissions are calculated based on fuel volumes and fuel spe-
Scope 1 emissions are reported based on the GHG Protocol cific emission factors. For Scope 2, the biogenic share of loca- h. Internal carbon price
and cover all direct emissions of GHG from Vattenfall. Emissions tion-based is used. For Scope 3, emissions are estimated Vattenfall has not implemented one official internal carbon
from our heat plants are determined based on direct measure- based on Vattenfall’s Environmental Product Declarations. price across the organisation. Price scenarios are used for
ment or by fuel consumption. Emissions from our vehicles are Biogenic emissions are calculated based on the carbon con- Scope 1 emissions as part of internal decision making. Trials of
determined based on distance travelled, and fugitive emissions tent in the different types of fuels used. The main biogenic fuels internal pricing to address Scope 3 emissions are ongoing.
Price scenarios are not disclosed externally at this point.
Vattenfall Annual and Sustainability Report 2025 127
Sustainability statement / Sustainability notes
Accounting policies and notes, cont.
i. Processes to identify and assess climate-related impacts, Climate risks and impacts are identified, assessed, and man- shared with the Executive Group Management and the Board of ness development projects, and mergers and acquisitions. For
risks and opportunities aged in Vattenfall’s direct operations as well as our upstream Directors. In addition, a separate annual report on environmen- example, physical and transition risks that could hinder busi-
The process to identify IROs as part of the double materiality and downstream value chain, based on climate scenario analy- tal risks, including climate risks, is presented to the Executive ness objectives are identified and assessed through scenario
assessment (DMA) process was based on Vattenfall’s existing sis. Identification and assessment of risks, including climate Group Management. analysis, see pages 85–86, typically considering the probability
processes. risks, are part of the Enterprise Risk Management process (see Climate risks are an important consideration when Vattenfall of risks and opportunities, as well as financial and non-financial
pages 45–52) where regular updates of the risk situation are sets business objectives or decides on major investments, busi- consequences over time.
Table 39. Scope 3 calculation methodologies, tools, and emission factors
Scope 3 category Description Methodology
1. Purchased goods and services Procurement of goods and services excluding new asset construction. Spend analysis based on supplier data from the global environmental disclosure platform CDP’s supply chain programme.
2. Capital goods Procurement associated with new asset construction. Spend analysis based on supplier data from CDP’s supply chain programme.
3a. Upstream emissions of purchased fuels Sold natural gas, nuclear fuel, biomass fuel, and other own fuel. For all fuels except nuclear fuels, emissions are calculated based on fuel volumes and fuel specific emission factors. For nuclear
fuel, emissions are calculated based on production and an environmental product declaration fuel-related emission factor.
3d. Generation of purchased electricity that is sold to Purchases of electricity that is sold to end users. Emissions are calculated based on electricity volume and a residual mix emission factor.
end users
4. Upstream transportation and distribution Transportation of purchased biomass to Vattenfall’s assets. Emissions are calculated based on the fixed distance between country of origin and country of delivery and a bulk carrier emission
factor.
5. Waste generated in operations Non-hazardous and hazardous waste generated in operations including radioactive Emissions are calculated based on waste volumes and waste type specific emission factor. For radioactive waste, calculations are
waste. based on the waste volume and the Vattenfall nuclear environmental product declaration.
6. Business travel Air, train, and car business travel. Emissions are calculated based on distance provided from Vattenfall’s contracted travel agency for air travel, directly from the
arrier for train travel, and directly from the rental agency for cars.
c
7. Employee commuting Travel for employees from home to work and back. Emissions are calculated based on average emissions for commuting per employee multiplied by the number of employees at
year-end of the reporting year.
8. Upstream leased assets Vessel leases and grid connector leases. For vessels, emissions are calculated using fuel consumption and/or distance and an emission factor. For grid connector leases,
emissions are calculated based on electricity losses and an emission factor.
9. Downstream transportation Transportation of products such as heat pumps, chargers, and boilers. Emissions are calculated but due to their insignificant size they are not included in the Annual and Sustainability report.
and distribution
10. Processing of sold goods Not applicable. Vattenfall does not sell intermediate products, therefore this category is not applicable.
11. Use of sold products Sold natural gas and sold gas boilers. For sold natural gas, emissions are calculated based on the sales volume and a use-phase emission factor. For sold gas boilers,
emissions are calculated based on the estimated gas use and a use-phase emission factor.
12. End-of-life treatment of sold products End-of-life treatment of gas boilers, heat pumps, and solar panels as well as EV charging Emissions are calculated based on number of units sold and an end-of-life emission factor.
points.
13. Downstream leased assets Not applicable. Vattenfall does not have any downstream leased assets, therefore this category is not applicable.
14. Franchises Not applicable. Vattenfall does not have franchises, therefore this category is not applicable.
15. Investments Emissions from investments. In line with the minimum requirement from the SBTi and the GHG Protocol, Scope 1 and 2 emissions are reported from investments.
Vattenfall Annual and Sustainability Report 2025 128
Sustainability statement / Sustainability notes
Accounting policies and notes, cont.
E4 Biodiversity and ecosystems level. For metrics which do exist at Group level, no additional necessary to address residual impacts on the values of a lent. This information was not available for other types of bio
a. Evaluation of performance and effectiveness of metrics validation has been provided by external assurance providers nearby protected area. diversity-sensitive areas. The overlap and area of influence on
The metrics used to evaluate performance and effectiveness in apart from the auditing of the annual report. Official documentation linked to each biodiversity-sensitive protected areas was primarily identified through the Integrated
relation to material biodiversity impacts, risks, and opportuni- area was reviewed to identify any references to impacts related Biodiversity Assessment Tool assessment, which defined the
ties are shown in Table 40. b. Material sites to Vattenfall’s activities. For Natura 2000 areas, information influence area per operation type. For Business Area Distribu-
Corporate disclosures linked to biodiversity impacts and In addition to analysing Vattenfall’s operations in and near biodi- regarding threats, pressures, and activities was assessed to tion, a GIS assessment was conducted to measure the overlap
dependencies are a developing area where relevant metrics are versity-sensitive areas, material sites have been assessed (see determine whether Vattenfall’s operations might conflict with of distribution lines with the biodiversity-sensitive areas.
still evolving. Within Vattenfall, data collection and impact moni- Table 41). These are sites which are under Vattenfall’s opera- the area’s conservation objectives. To report onsite ecological None of the sites has shown a material negative impact lead-
toring currently tends to occur at local level as part of projects tional control including all markets. A site is material when per- status, Natura 2000 ecological information linked to defined ing to deterioration of habitats or species for which the pro-
and activities and the data is not typically aggregated at Group mitting requirements have deemed compensatory measures conservation classes was used, ranging from average to excel- tected area has been designated.
Table 40. Performance and effectiveness metrics
Metric Description Connection to material IROs Methodologies Significant assumptions Uncertainties and limitations
Operational sites The number of operational sites that Material risk of delays or stoppages in permitting GIS analysis is used to map and analyse the Assumes accurate and Proximity to these areas does not necessarily relate to significant impact, as
located in or near are situated within or in close proximity and project realisation, leading to increased costs spatial relationships between operational sites up-to-date mapping of the actual effects depend on the specific activities and ecological interactions
biodiversity-sensitive to areas identified as critical for bio- and lost opportunities. Potential negative impact and biodiversity-sensitive areas. This involves biodiversity-sensitive at each site. The metric lacks detailed information about the nature and extent
areas diversity, such as protected areas, on customer trust. This metric helps identify overlaying site locations with maps of protected areas in IBAT. of impacts, and it may not capture temporal variations or indirect effects
nature reserves, and key biodiversity sites that may face regulatory and operational areas, nature reserves, and key biodiversity areas such as pollution and habitat fragmentation. Additionally, this metric does not
areas. challenges due to their location, impacting to identify proximity and potential impacts and account for the effectiveness of regulatory measures, cumulative impacts of
project timelines and costs. dependencies. multiple sites, nor the broader ecological context and interdependencies within
The Integrated Biodiversity Assessment Tool ecosystems.
(IBAT): IBAT provides access to critical biodiversity
data, including the IUCN Red List, World Database
on Protected Areas, and Key Biodiversity Areas. It is
used to assess biodiversity sensitive areas.
Red listed species The number of species classified as Material impact on threatened species (for exam- IBAT is used to identify and assess the presence Assumes comprehensive The presence of red listed species near operational sites does not necessarily
near operational threatened (for example, critically ple, certain birds, bats and fish) due to operations, of red listed species near operational sites, using and current data on spe- indicate a direct impact, as the actual effects depend on specific site activities
sites endangered, endangered, or vulnera- leading to disruptions in permitting, project cancel- including the IUCN Red List-dataset. It provides cies distribution. and ecological interactions. This metric therefore lacks detailed information
ble) according to the IUCN Red List, lations, and changes in operating conditions. This comprehensive data on species’ conservation about the nature and extent of impacts on individual species. Data quality is
within a specified distance from opera- metric highlights the potential ecological impact of status and distribution. crucial, but accuracy can vary, and there may be inconsistencies in how such
tional sites. operations on threatened species, which can a large dataset is collected and reported.
affect regulatory compliance and operational
continuity.
Land and sea use The extent of land and sea area that Material impact on terrestrial, aquatic, and marine GIS to obtain geographical data and to conduct Assumes consistent and The metric lacks detailed information on the specific types of habitats affected
change has been altered or converted due to ecosystems, contributing to global habitat and area calculation. Data has been reported from the reliable data collection and the quality of those habitats. The metric may not capture the full extent of
new projects or operational activities, ecosystem changes. Risks linked to permitting environmental responsibles at subsidiaries within and reporting. indirect impacts such as habitat fragmentation and connectivity.
providing an indication of the impact delays and increased costs. This metric assesses Vattenfall Group to our internal reporting system.
on natural habitats and ecosystems. the extent of habitat transformation, which is cru-
cial for understanding the environmental footprint
and associated regulatory risks.
Vattenfall Annual and Sustainability Report 2025 129
Sustainability statement / Sustainability notes
Accounting policies and notes, cont.
Table 41. Material sites c. Processes to identify and assess biodiversity-related Biodiversity and ecosystem resilience analysis
impacts, risks and opportunities A resilience analysis was built upon Vattenfall’s Biodiversity
Activities Whether activities lead to Mitigation, or Potential and actual impacts Footprint Assessment (2021–2022) together with internal land
negatively etoriation of habitats or
d compensation
Type of affecting, and species for which the protected Biodiversity Ecological measures As part of the DMA process, a gross list of biodiversity-related use and emission projections for 2040. The resilience analysis
Site name Country operation negative effects area has been designated sensitive area status implemented2, 3 potential impacts per Business Area and throughout Vattenfall’s used the scopes framework and definitions adapted from the
value chain was generated using the Encore database. The GHG Protocol and The Intergovernmental Science-Policy Plat-
Tollare Sweden Distribution Tree felling, blast- No Tollare No informa- Planting new oaks
ing, excavation in Nature Reserve tion availa- to replace felled Taskforce on Nature-related Financial Disclosures (TNFD) and form on Biodiversity and Ecosystem Services (IPBES) pressures.
nature reserve ble ones its LEAP approach (Locate, Evaluate, Assess, Prepare) was addi- The assessment evaluated impacts in Mean Species Abun-
tionally used for guiding the DMA within Vattenfall’s operations dance (MSA)/km2, which provides an indication of the fraction of
Tuggen- Sweden Distribution Tree felling, blast- No Bredselet No informa- Restoration of sand as well as throughout its value chain. biodiversity integrity lost in a given area. Details of the assess-
Västmyrriset ing, excavation in Nature Reserve tion availa- pine forest, clearing
Actual impacts on site level have been assessed using the ment are provided below:
nature reserve ble small spruce
Integrated Biodiversity Assessment Tool, including site proxim- • Scope: direct operations and the entire value chain including
Kolbotten- Sweden Distribution Tree felling, blast- No Bornsjön Good Creating faunal ity to biodiversity-sensitive areas as well as threatened species Scope 1, Scope 2, Scope 3 Upstream, and Scope 3 Down-
Bockholms- ing, excavation in Natura 2000 – Excellent depots, bat boxes, found within a range of our operations. To assess actual stream (use of sold products).
sundet nature reserve planting oaks impacts throughout Vattenfall’s value chain, the Global Biodiver-
• Key assumptions related to relevant pressures:
Flemingsberg- Sweden Distribution Tree felling, blast- No Flemingsberg No informa- Fencing, creating sity Score (GBS) was used to conduct a Biodiversity Footprint
– Terrestrial biodiversity: atmospheric nitrogen deposition,
Lissma- ing, excavation in Nature Reserve tion availa- bee beds, wet- Assessment in 2021–2022 (read more under “Biodiversity and
climate change, encroachment, fragmentation, land use,
Ekudden nature reserve ble lands, bird boxes ecosystem resilience analysis” further down).
ecotoxicity.
Pamilo Hydro- Finland Hydropower Water level No1 Lammassaari- Good Water regulation – Aquatic biodiversity: Freshwater eutrophication, hydrologi-
Dependencies
power Plant plant changes affecting Yppylä Natura – Excellent requirements cal disturbance due to climate change, hydrological distur-
nesting, causing 2000
As part of the DMA process, an assessment of dependencies
bance due to direct water use, land use in catchment of riv-
erosion on biodiversity and ecosystems has been conducted based on
ers, land use in catchment of wetlands, wetland conversion,
activity type using Encore data. The assessment did not
Söderfors Finland Hydropower Flow regulation No1 Bredforsen Good Water regulation ecotoxicity.
include ecosystem services that are disrupted or likely to be
Power Station plant affecting natural Natura 2000 requirements • Time horizon: Emissions and land-use projections extend to
disrupted and no assessment of dependencies in Vattenfall’s
flooding
upstream nor downstream value chain was conducted. 2040, whereas the Biodiversity Footprint Assessment relies
Stornorrfors Sweden Hydropower Partial migration No1 Vindelälven Average Fish migration solu- on 2020 data.
plant barrier for fish Laisälven – Good tion implemented Transition, physical and systemic risks and opportunities • Data sources: Operational data linked to emissions, water use,
Natura 2000 As part of the DMA, a gross list to identify transition and physi- waste, fuel use, land use, life cycle performance of energy
Strömmens Sweden Hydropower Low minimum No1 Sju Strömmar Good Water regulation
cal risks and opportunities was generated using the Encore technologies from environmental product declarations, spend
Power Station plant flow affecting Natura 2000 and periodic database. These have been assessed, based on impacts and analysis.
small streams and minimum flows dependencies, through the scoring process in the DMA.
floodplain Assessment criteria can be found in the section of this report Results
describing the DMA (pages 80–82). Systemic risks were con- The overall results of the resilience analysis show that the
Idbäcksverket Sweden Thermal Water cooling No Nyköpingsån Moderate Releasing fish
sidered at an early stage of the DMA to develop a list of risks decarbonisation of Vattenfall will be a key driver to reduce pres-
Nyköping power plant causing tempera- annually, limiting
ture increase operations during related to our impacts. However, none were identified as mate- sures on biodiversity. It also shows that there is a need to have
low flow rial in the assessment. a strong focus on limiting land use impacts as well as strength-
ening biodiversity values linked to both existing assets and
1. To be re-assessed as part of permit reviews linked to the national implementation of the Water Framework Directive (2000/60/EC)
Biodiversity and ecosystem scenario analysis development projects.
2. No compensatory measures as part of a formal NA2000 assessment have been required.
Vattenfall has not used biodiversity and ecosystems scenario When it comes to our annual growing footprint (dynamic
3. Mitigation measures such as limiting emissions to air driven by thresholds set by the Industrial Emissions Directive (2010/75/EU)
analysis to inform the identification and assessment of material impacts), the Biodiversity Footprint Assessment (2021–2022)
or other emission related requirements is not included. risks and opportunities. shows that almost 90 percent is connected to climate change
impacts.
Vattenfall Annual and Sustainability Report 2025 130
Sustainability statement / Sustainability notes
Accounting policies and notes, cont.
Our operations impact both terrestrial, aquatic, and marine rocess for new projects or linked to significant changes to
p c. Prioritised materials for circularity – high risk materials communities on pages 117–119 for more information on how we
ecosystems due to land and sea use, site constructions, and existing operations when communities are likely to be im The risk assessment on page 102 was evaluated based on the work with suppliers and affected communities).
hydrological disturbances. Looking at static impacts (historical pacted. As part of this process, assessments on impacts on sub-risks and underlying data presented in Table 42. No data
transformations), around 30 percent is due to our own opera- ecosystems and shared biological resources are included was available in the consulted source reports for concrete and d. Responsibility for and financing of nuclear
tions, mainly linked to land occupation needed for the distribu- when relevant. If considered relevant for the process of setting polymers. Social and supply risks for these two materials were waste management
tion grids (see Figure 18). Considering the investments needed biodiversity targets, appropriate consultations are conducted assessed by internal experts. Biodiversity risks for all materials According to Swedish law, nuclear power companies are
in grids and fossil free generation for the energy transition, land involving relevant stakeholders to respect local and affected were assessed qualitatively by internal experts in addition to responsible for covering all costs related to the management
use could increase significantly towards 2040 compared to the communities. The aim is also to constantly apply the latest the quantitative assessment. and final disposal of nuclear waste. They are also required to
2019 baseline. s cientific evidence and methods in developing and assessing It was assumed that Vattenfall’s supply chain is comparable finance the dismantling of nuclear power plants and other
The assessment also shows significant static land use foot- the progress of targets. with the global supply chain for each material, except for alu- nuclear facilities. This is done through a fee for every kilo-
print from fuel and non-fuel supply chains. minium where European supply chain data was used and for watt-hour that is paid into the government’s Nuclear Waste
Aquatic static impacts are also relevant, mainly through e. Note on desertification concrete where Swedish supply chain data was used, as Fund. All Vattenfall’s waste handling is therefore fully funded.
hydrological disturbance linked to hydropower operations. How- Desertification is not considered relevant for Vattenfall due to Vattenfall’s sourcing primarily occurs in these locations. In line with legal requirements, Vattenfall’s exposure to envi-
ever, data refinements are required since the hydropower mod- the geographical nature of our operations and impacts, hence Based on the risk assessment, the four materials with the ronmental risks stemming from nuclear waste management
ule in the Global Biodiversity Score tool was still experimental at it has not been included under policies and governance. highest risk were selected per risk indicator (climate, supply, extends until the final closure of the repositories, which is
the time of the assessment. A weakness in the methodology social, and biodiversity). For these selected materials, individual currently expected around 2080. After this, the responsibility
was also that marine areas were not fully included at the time of E5 Resource use and circular economy thresholds for priority levels 1, 2, and 3 were defined based on is formally transferred to the state.
the assessment. We are however aware of marine impacts at a. Resource inflows the distribution of the risk scores for each risk indicator. For
project level and we invest in research and development activi- Reported data are a mixture of direct measurements and esti- social risks, we assumed that risks at the country level can be e. Processes to identify and assess impacts, risks and oppor-
ties to further study how marine species and habitats are mations. applied to our material suppliers from those respective coun- tunities related to resource use and circular economy
impacted by offshore wind developments. tries. The process to identify and assess IROs related to resource
b. Waste Communities in the supply chain have not been consulted use and the circular economy builds on Vattenfall’s existing
d. Consultation with affected communities Waste is monitored at site or by third party contractors and directly. However, in 2025, Vattenfall took part in two multi- tracking of material inflows and outflows for its own assets,
As part of the DMA process and the resilience analysis, no reported annually. Where waste is managed by third parties, stakeholder initiatives, the German Energy Sector Dialogue and along with an assessment of future resource needs from sup-
additional consultations with affected communities have taken they must follow Vattenfall’s Code of Conduct for Suppliers and the International RBC Agreement for the Renewable Energy pliers for planned investments. Material inflows up to 2030
place linked to biodiversity and related disclosures. Consulta- Partners. Sector, which increased Vattenfall’s understanding of its supply have been evaluated based on the current project pipeline to
tions with affected communities are part of the permitting chain and potentially affected communities (see section S2 identify materials with higher risk (see section c). The analysis
Workers in the value chain on pages 113–116 and S3 Affected indicates that material inflows are expected to increase signifi-
cantly, particularly due to the expansion of wind power assets.
Figure 18. Vattenfall’s terrestrial static biodiversity footprint, in MSA.km2
Table 42. Resource use and circular economy risks
Scope 1: Land use impacts from own operations Scope 2: Upstream land use impacts in all geographies
Risk Assessed sub-risks Data taken from below references
Emission intensity retrieved from Life Cycle Inventory databases like
Power line corridors 328 Fossil fuel extraction 310 CO2 emissions CO2 emissions
LCA for Experts
Supply risk
Properties surrounding Purchased goods
hydropower stations 27 and services 235 Supply risk Economic importance Study on the Critical Raw Materials for the EU 2023
Import reliance
Industrial sites 19 Biomass fuels 234 Working conditions World Bank governance report
Social risk Local communities ILOSTAT
Onshore wind farms 6 Nuclear flues 1 Conflict areas Heidelberg Institute for International Conflict Research 2021
Biodiversity Biodiversity impact WWF Biodiversity risk filter 2024
Vattenfall Annual and Sustainability Report 2025 131
Sustainability statement / Sustainability notes
Accounting policies and notes, cont.
S1 Own workforce S2 Workers in the value chain Entity-specific: Security of supply b. System Average Interruption Frequency Index (SAIFI)
All Vattenfall workforce metrics are reported in full-time equiva- a. Counterparty screenings a. System Average Interruption Duration Index (SAIDI) SAIFI measures the number of outages per customers and year.
lents (FTEs), reflect year-end, and are not validated by an external A counterparty is a legal entity that is involved or is about to get SAIDI measures the average outage time per customer and This is calculated by dividing the number of outages by total
body other than Vattenfall’s auditor. Furthermore, as disclosed on involved in business activities with Vattenfall without being part year. It is calculated as total outage time in hours multiplied number of customers. The unit of measurement is interruptions
page 109, we differentiate between the types of workers in our of the Vattenfall Group. Counterparties include but are not lim- by 60 minutes divided by total number of customers. The unit per customer.
workforce which influence our metrics as we calculate and ited to suppliers/vendors, contractors, consultants including of measurement is minutes. Vattenfall’s SAIDI target is 99.99 The following outages are included: announced and
report them separately. advisors, service providers, partners including joint venture and percent which means that the system average interruption unannounced outages that occur on Vattenfall’s distribution
consortium partners, and business customers. duration needs to be less than 75 minutes annually, assuming network and supplying distribution networks that are not
a. Lost Time Injury Frequency Counterparty screenings is an internal procedure that enables there are 525,600 minutes per year. owned by us. Interruptions from extraordinary events are
Vattenfall’s strategic health and safety target is called Lost Time Vattenfall to identify, manage, reduce, mitigate, and remediate included.
Injury Frequency (LTIF), which is expressed in terms of the our potential and actual compliance risks and sustainability
number of lost time occupational injuries resulting in absences impacts in relation to our counterparties. The screening activity
longer than one day, accidents resulting in absences longer involves a screening against sanction lists, negative media
than one day, and accidents resulting in fatalities, per one mil- coverage, and political exposure risks.
lion worked hours. It pertains only to Vattenfall’s employees and
is calculated by summing the number of Lost Time Injuries and b. Screening finding
Fatalities over the year and multiplying it by a normalisation A screening finding is any relevant hit identified during the
factor of 1,000,000, and then dividing by the total number of counterparty screening process – such as sanctions, political
hours worked in the same period. exposure, and negative media or reputational risks – that
High consequence LTI considers work-related accidents requires assessment and potentially follow up. These findings
that result in an injury from which the worker cannot recover inform Vattenfall’s decision on whether a business relationship
(for example amputation of a limb), or is not expected to recover with a counterparty may be established.
fully from the accident to pre-injury health status within 180
days or longer. c. Sustainability site audit and audit finding
Similarly, the severity rate describes how severe the injuries A sustainability site audit is an onsite assessment used to verify
sustained in a given year were per accident expressed in the a supplier’s compliance with Vattenfall’s Code of Conduct for
number of lost days and calculated by taking the total number Suppliers and Partners. Audits may be initial, follow up, or sur-
of days lost from LTIs and fatalities divided by the number of veillance audits, depending on the stage of the supplier rela-
LTIs in a given year. tionship and the outcome of previous assessments.
An audit finding refers to any deviation from Vattenfall’s Code
b. Total recordable incidents of Conduct for Suppliers and Partners at the audited supplier
The total recordable incidents (TRI) consist of the number of site identified during the sustainability audit process. Such find-
fatalities, lost-time injuries, medical treatment cases, restricted ings, non-conformities, and observations result in corrective
work cases resulting from an injury, excluding first-aid cases in actions, which are documented, implemented, and verified
a given year. Consequently, the frequency of TRIs is calculated through a Corrective Action Plan (CAP). Audit findings and
by dividing TRI and the hours worked in a year. corrective actions form part of the basis for Vattenfall’s decision
of whether a business relationship with a counterparty may be
c. Employee turnover rate established.
The employee turnover rate expresses how many employees
leave Vattenfall in a given year. This metric is calculated by
dividing total FTEs leaving and the average total FTEs in a given
year. This is not calculated separately per country and excludes
non-employees.
Vattenfall Annual and Sustainability Report 2025 132
Sustainability statement / Sustainability notes
EU Taxonomy notes and tables
This section together with the taxonomy information on page Climate change mitigation on operators through permits and instructions as set out by the ing. Legal compliance is also assessed annually through our
84 in this report is Vattenfall’s taxonomy reporting for 2025. Aligned activities such as electricity generation from wind (4.3) competent national authorities. Legal compliance is verified audits linked to certified Environmental Management Systems.
and storage of electricity (4.10) (pumped hydro power storage) through environmental permits as well as annual reviews of When it comes to requirements that extend beyond existing
Eligible activities contribute to the climate change mitigation objective by default. certified Environmental Management Systems. legislation, such as requirements linked to the use of mercury
Vattenfall has identified the following main eligible activities in Other major activities such as electricity generation from hydro- More specifically, the DNSH criteria linked to sustainable and substances on the EU candidate list, these are fulfilled via
the Climate Delegated Acts and Complementary Delegated Act power (4.5) and electricity generation from nuclear energy in use and protection of water and marine resources are linked internal systems for substitution and chemicals management.
for nuclear and gas: existing installations (4.28) are verified to be below the life cycle to compliance with the Water Framework Directive (WFD)
4.3 Electricity generation from wind power 1 greenhouse gas (GHG) threshold of the EU taxonomy via (2000/60/EC), and a key focus of the criteria is the implementa- Minimum safeguards
4.5 Electricity generation from hydropower 1 Vattenfall’s third-party verified life cycle assessments. tion of relevant mitigation measures. As part of the transposi- Vattenfall has a public Human Rights Policy describing our
For the activity distribution and transmission of electricity tion of the WFD in the different markets, national competent approach to respecting human rights. It includes commitments
4.9 Transmission and distribution of electricity 2
(4.9), the majority of the activity has been assessed as aligned authorities set the ecologically relevant environmental require- to follow the UN Guiding Principles on Business and Human
4.28 Electricity generation from nuclear energy in existing ments on operators as part of permit conditions where applica- Rights, OECD guidelines for Multinational Enterprises, ILO’s
since Vattenfall’s distribution networks are part of the inter
installations1 ble. As long as the procedures and requirements set out by eight fundamental conventions, and the principles of the
connected European system, and the new generation con-
nected to the grid complies with the climate requirements competent authorities are followed and that permit require- UN Global Compact. In our Code of Conduct for Suppliers and
All of Vattenfall’s activities can be found in the taxonomy tables
for new connections. A minor part of the activity has been ments are not relying on derogations, Vattenfall considers the Partners, we extend these human rights requirements to our
in which can be found further down in this section. Vattenfall
reported as not aligned, due to lack of verifiable data. activity to be aligned. Relevant to note is that for Swedish hydro- value chain.
has no new activities in 2025.
Compliance of other economic activities is assessed at prod- power there is an ongoing review of existing permits where fur- On a reoccurring basis, we do a gap analysis with an external
All Vattenfall’s operating segments are involved in identifying
uct or economic-activity level. Alignment is often fulfilled via ther relevant measures will be identified as part of the overall organisation to ensure that we live by these policies. The latest
our eligible and aligned economic activities. The external
compliance with EU and national legislation, and is annually fol- process. Vattenfall’s assessment here is that all hydropower Human Rights Assessment was done in August 2021. Although
reporting is based on reporting done at the lowest level for all
lowed up on through our certified Environmental Management operations that are included in the planned review of existing we are already managing most issues identified, key areas for
reporting units in the Group and is an integrated part of our
Systems. permits are considered aligned as long as measures in existing improvement from the analysis have been transformed into a
financial reporting system.
permits have been implemented. As permits will be gradually Human rights action plan, including a published version on our
Do No Significant Harm (DNSH) updated with new identified relevant measures, a continuous website and an internal list for continuous follow-up. Progress
Alignment assessment
Climate change adaptation re-assessment of the alignment of hydropower will be conduc against the action plan is reviewed on a regular basis. The pro-
For an economic activity to qualify as aligned under the EU tax-
Two IPCC climate scenarios, RCP 4.5 and RCP 8.5, have been ted. If future relevant measures are determined on the basis of cess is valid throughout the whole organisation. More details on
onomy, it needs to substantially contribute to at least one of the
used to conduct the physical climate risk and vulnerability derogations an individual assessment will be conducted to our human rights work can be found on page 107, as well as in
environmental objectives as defined in the taxonomy, do no sig-
assessments for Vattenfall’s operations. The scenarios used assess alignment. our separate Human Rights Progress Report.
nificant harm (DNSH) to the remaining objectives, and comply
reflect the most detailed data available at the time of assess- In the event of a breach of our policies, Vattenfall has a
with minimum social safeguards. Substantial contribution and
ment, representing intermediate and high GHG concentration Transition to a circular economy whistleblowing system in place that has been checked against
DNSH have been assessed on an economic activity level, and
scenarios. In 2024, a study was commissioned to verify our The DNSH criteria related to circular economy require that the UN Guiding Principles for Business and Human Rights’
the minimum social safeguards on Group level.
existing risk inventory and strengthen Vattenfall’s work on cli- activities demonstrate high durability and recyclability where effectiveness criteria, read more on page 124–125. Complaints
mate scenario analysis for our operations. For further details the materials applied are eligible. Resource efficiency and circu- through this or other channels do not automatically make us
Substantial contribution
on physical climate risk management in Vattenfall, see section larity is a key focus area for Vattenfall, see pages 102–105 to consider it as a breach of the minimum safeguards. It is only
All Vattenfall’s eligible economic activities have been assessed
E1 Climate change on pages 85–86. read more. The requirement is fulfilled via contractual agree- after an analysis and a finding of non-compliance with one of
against the substantial contribution criteria for climate change
ments with suppliers and contractors and via compliance with the frameworks listed as minimum safeguards, that we consider
mitigation. Important to note is that investments may also
Sustainable use and protection of water and marine Vattenfall’s overarching Environmental Management System, in the affected activities as not aligned. No such rulings have been
contribute to climate change adaptation, however, such costs
resources, and Protection and restoration of biodiversity which circularity and resource management are an explicit part. made against Vattenfall during the reporting year.
are not distinguishable as adaptation to climate risks is an
and ecosystems
integral part of project specification and design. Therefore, all
The DNSH criteria for water and biodiversity are linked to the Pollution prevention and control
capex and opex are reported under climate change mitigation.
requirements of EU legislation, which are implemented in Compliance is secured by adhering to existing EU and national
Vattenfall’s aligned turnover only contributes to climate change
national law in the different markets where Vattenfall operates. legislation. Legal compliance is followed up on through require-
mitigation.
Within current legal systems, compliance requirements are set ments from competent authorities and environmental report-
1. Taxonomy aligned.
2. Partly taxonomy aligned.
Vattenfall Annual and Sustainability Report 2025 133
Sustainability statement / Sustainability notes
EU Taxonomy notes and tables, cont.
Accounting policy Assets recognised in accordance with IFRIC 1 are reported as into operation within 18 months. Vattenfall has classified all In certain cases, allocation keys have been used based on
The KPIs have been defined in accordance with Annex I to the investments in property, plant, and equipment. The numerator aligned capex and opex under categories (a) and (b). production volumes or other relevant allocation factors.
article 8 Delegated Act ((EU) 2021/2178) as amended by Com- of the KPI is the share of capex assessed to be aligned. For assets held for sale (IFRS 5), capex is recognised in taxon- Vattenfall’s internal reporting system is not always set up in
mission Delegated Regulation (EU) 2026/73. Turnover in the taxonomy reporting is equivalent to the net omy reporting until the asset is classified as such. Thereafter, such a way it supports the detailed requirements of the taxon-
The basis for preparation of the EU taxonomy reporting is the sales in Vattenfall’s income statement. The numerator of the KPI until divestment, the investments are expensed in the income omy regulation.
Vattenfall consolidated accounts prepared in accordance with is the share of turnover assessed to be aligned. statement and therefore not part of the capex taxonomy report- All assessments and reporting are based on our current
IFRS, see note 3 to the Consolidated accounts. In addition, the Opex consists of maintenance costs, research and develop- ing. Turnover and opex are recognised in the taxonomy report- interpretation of the EU Taxonomy Regulation and its Delegated
taxonomy reporting is based on Vattenfall’s segment reporting ment costs as well as expenses for short-term leases. Expenses ing until Vattenfall lose control. Acts. Available guidance from the EU through FAQs and indus-
as presented in note 6 to the Consolidated accounts, meaning covered by the opex definition in the taxonomy are reported as According to the delegated act to article 8, non-financial try practices, that evolve over time, may affect the accounting
that turnover KPI figures for the electricity producing activities Other external expenses and Personnel expenses in Vattenfall’s undertakings that have issued environmentally sustainable policies, together with the eligibility and alignment assessment
are based on spot prices. Results from electricity production income statement. The numerator of the KPI is the share of bonds or debt securities with the purpose of financing specific Rounding differences may occur in the tables.
price hedges, which are done on group level, are not allocated opex assessed to be aligned. identified taxonomy-aligned activities must disclose adjusted
by production type. Hence, results from electricity price hedges Capex and opex according to the taxonomy is divided into capex and turnover related to the taxonomy-aligned capital
are recognised as a non-eligible activity. three different categories. Category (a) refers to capex and opex expenditure and operating expenses financed by such bonds
Capex consists of additions to (i.e. investments in) property in already existing and aligned activities. Category (b) refers to or debt securities. Vattenfall has not issued any bonds accord-
plant and equipment (reported in Vattenfall’s balance sheet and required capex and opex to expand already aligned activities, ing to the EU Green Bond Standard. In addition, as Vattenfall
in note 23), intangible assets (reported in Vattenfall’s balance expenses for new aligned activities as well as expenses neces- has not issued any debt securities for the financing of taxono-
sheet and in note 24), and additions to right of use assets from sary to transform a non-taxonomy-aligned activity into being my-aligned activities, no alternative KPI adjustments are pre-
leases whereby also business combinations are considered. taxonomy-aligned. Category (c) refers to capex and opex that in sented for capex or turnover.
The right of use assets, presented in note 32, are included in themselves reduce greenhouse gas emissions and/or become
investments in property, plant, and equipment in note 23. low carbon, provided the measures are implemented and put
Template 1
Proportion of turnover, capex and opex from products or services associated with Taxonomy eligible or Taxonomy-aligned economic activities
Breakdown by environmental objectives of Taxonomy aligned activities
Proportion of Taxonomy Proportion of Proportion of Proportion of Not assessed Taxonomy Proportion of
taxonomy aligned taxonomy Climate change Climate change Circular enabling transitional activities considered aligned activities taxonomy aligned
Total eligible activities activities aligned activities mitigation adaptation Water economy Pollution Biodiversity activities activities non-material 2024 activities 2024
KPI Million SEK % MSEK % % % % % % % % % % Million SEK %
Capex 30,936 89% 26,417 85% 85% N/A N/A N/A N/A N/A 49% 10% N/A 26,222 88%
Turnover 234,915 40% 83,066 35% 35% N/A N/A N/A N/A N/A 30% 21% N/A 77,316 32%
Opex 7,671 89% 6,294 82% 82% N/A N/A N/A N/A N/A 40% 33% N/A 6,608 80%
Vattenfall Annual and Sustainability Report 2025 134
Sustainability statement / Sustainability notes
EU Taxonomy notes and tables, cont.
Environmental objective of taxonomy aligned activities
EU Taxonomy – Capex
Taxonomy eligible KPI Taxonomy aligned KPI Taxonomy aligned KPI Proportion of
Proportion of taxonomy Monetary value of Proportion of taxonomy Climate change Climate change Water Circular Pollution Biodiversity Enabling Transitional taxonomy aligned in
eligible capex capex aligned capex mitigation adaptation economy activity activity taxonomy eligible
Economic activities Code % Million SEK % % % % % % % E T %
Electricity generation using solar photovoltaic technology CCM 4.1 0% 27 0% 0% N/A N/A N/A N/A N/A 100%
Electricity generation from wind power CCM 4.3 26% 7,961 26% 26% N/A N/A N/A N/A N/A 100%
Electricity generation from hydropower CCM 4.5 5% 1,578 5% 5% N/A N/A N/A N/A N/A 100%
Transmission and distribution of electricity CCM 4.9 38% 11,670 38% 38% N/A N/A N/A N/A N/A E 99%
Storage of electricity CCM 4.10 1% 162 1% 1% N/A N/A N/A N/A N/A E 100%
District heating/cooling distribution CCM 4.15 4% 959 3% 3% N/A N/A N/A N/A N/A 88%
Installation and operation of electric heat pumps CCM 4.16 0% 9 0% 0% N/A N/A N/A N/A N/A 50%
Cogeneration of heat/cool and power from bioenergy CCM 4.20 0% 9 0% 0% N/A N/A N/A N/A N/A 100%
Production of heat/cool from bioenergy CCM 4.24 1% 234 1% 1% N/A N/A N/A N/A N/A 100%
Electricity generation from nuclear energy in existing installations CCM 4.28 8% 2,581 8% 8% N/A N/A N/A N/A N/A T 100%
Electricity generation from fossil gaseous fuels CCM 4.29 1% 0 0% 0% N/A N/A N/A N/A N/A T 0%
High-efficiency co-generation of heat/cool and power from fossil gaseous fuels CCM 4.30 0% 0 0% 0% N/A N/A N/A N/A N/A T 0%
Production of heat/cool from fossil gaseous fuels in an efficient district heating and
cooling system CCM 4.31 1% 0 0% 0% N/A N/A N/A N/A N/A T 0%
Construction of new buildings CCM 7.1 1% 200 1% 1% N/A N/A N/A N/A N/A 100%
Installation, maintenance and repair of energy efficiency equipment CCM 7.3 0% 5 0% 0% N/A N/A N/A N/A N/A E 100%
Installation, maintenance and repair of charging stations for electric vehicles in buildings
(and parking spaces attached to buildings) CCM 7.4 3% 1,008 3% 3% N/A N/A N/A N/A N/A E 100%
Installation, maintenance and repair of instruments and devices for measuring, regulation
and controlling energy performance of buildings CCM 7.5 0% 6 0% 0% N/A N/A N/A N/A N/A E 100%
Installation, maintenance and repair of renewable energy technologies CCM 7.6 0% 8 0% 0% N/A N/A N/A N/A N/A E 100%
Total KPI capex 89% 26,417 85% 85% 49% 10%
N/A = Not applicable (for the relevant environmental objective)
Vattenfall Annual and Sustainability Report 2025 135
Sustainability statement / Sustainability notes
EU Taxonomy notes and tables, cont.
Aligned Intangible Tangible Right of use Business
Proportion of taxonomy aligned capex capex 2025 fixed assets fixed assets assets combination
Capex KPI
Economic activities Code Million SEK Million SEK Million SEK Million SEK Million SEK 85 percent (88) of Vattenfall’s capex in 2025 was aligned (i.e. best performance in the sector or industry, which fulfil the two
compliant with the taxonomy framework). 4 percent (3) of the following conditions: (i) they should not hamper the develop-
Electricity generation using solar photovoltaic technology CCM 4.1 27 0 4 23 0
capex relates to activities that were not aligned and the remain- ment and deployment of low-carbon alternatives and (ii) they
Electricity generation from wind power CCM 4.3 7,961 1 7,854 107 0
ing 11 percent (9) relates to capex in non-eligible activities, i.e. should not lead to a lock-in of carbon intensive assets, consid-
Electricity generation from hydropower CCM 4.5 1,578 0 1,567 11 0
not covered by the taxonomy. Non-eligible activities according ering the economic lifetime of those assets.
Transmission and distribution of electricity CCM 4.9 11,670 144 11,409 118 0
Storage of electricity CCM 4.10 162 0 156 6 0
to the taxonomy regulation do not necessarily mean that they The majority of Vattenfall’s taxonomy-aligned capex relates to
District heating/cooling distribution CCM 4.15 959 0 959 0 0
are not sustainable. It only indicates that the activity is not cov- transmission and distribution of electricity (4.9), electricity gen-
Installation and operation of electric heat pumps CCM 4.16 9 1 7 0 1
ered and hence not assessed under the taxonomy framework. eration from wind power (4.3), from nuclear energy in existing
Cogeneration of heat/cool and power from bioenergy CCM 4.20 9 0 9 0 0
All capex in Vattenfall has been assessed against the criteria installations (4.28) and from hydropower (4.5). Vattenfall’s gen-
Production of heat/cool from bioenergy CCM 4.24 234 0 234 0 0 for significant contribution to the climate change mitigation eration of heat and electricity from gas (4.29–31) represents the
Electricity generation from nuclear energy in existing installations CCM 4.28 2,581 0 2,581 0 0 (CCM) and climate change adaptation (CCA). All capex contrib- absolute majority of not aligned capex.
Construction of new buildings CCM 7.1 200 0 200 0 0 utes to both climate objectives, though cannot be allocated to Compared to the previous year, capex has increased by SEK 1
Installation, maintenance and repair of energy efficiency equipment CCM 7.3 5 0 2 3 0 respective objective and are therefore only reported under cli- billion. In 2025, investments in the activity electricity transmis-
Installation, maintenance and repair of charging stations for electric mate change mitigation (CCM) due to the fact that significant sion and distribution (4.9) increased by SEK 1.4 billion compared
vehicles in buildings (and parking spaces attached to buildings) CCM 7.4 1,008 261 373 374 0 climate risks are an integrated part of the project’s design. to 2024. In addition, investments in electricity generation from
Installation, maintenance and repair of instruments and devices Vattenfall’s share of capex attributable to enabling activities nuclear energy in existing installations (4.28) increased by SEK
for measuring, regulation and controlling energy performance amounts to 49 percent of taxonomy aligned capex. Enabling 0.7 billion. However, investments in electricity generation from
of buildings CCM 7.5 6 0 2 4 0
activities are those activities that directly enable others to make wind power (4.3) has decreased by SEK 1 billion.
Installation, maintenance and repair of renewable energy
technologies CCM 7.6 8 0 4 4 0 a significant contribution to the climate-/environmental objec- Vattenfall develops wind and solar power projects for divest-
Total KPI capex 26,417 406 25,360 649 1 tives. These are mainly related to the transmission and distribu- ment (develop to sell). The expenses related to these projects
tion of electricity (4.9). are recognised as inventory and are therefore not included in
The share of capex attributable to transitional activities the taxonomy capex KPI.
amounts to 10 percent of taxonomy aligned capex and consists Vattenfall’s total capex amounts to SEK 30,936 million. The
entirely of the activity electricity generation from nuclear energy absolute majority consists, as in the previous year, of tangible
in existing installations (4.28). Transitional activities are those fixed assets attributable to taxonomy aligned activities 4.3, 4.5,
for which low-carbon alternatives are not yet available and that 4.9 and 4.28 and taxonomy not aligned activities 4.29–31.
have greenhouse gas emission levels that correspond to the
Vattenfall Annual and Sustainability Report 2025 136
Sustainability statement / Sustainability notes
EU Taxonomy notes and tables, cont.
Environmental objective of taxonomy aligned activities
EU Taxonomy – Turnover Taxonomy eligible KPI Taxonomy aligned KPI Taxonomy aligned KPI Proportion of taxonomy
Proportion of taxonomy Monetary value Proportion of taxonomy Climate change Climate change Water Circular Pollution Biodiversity Enabling Transitional aligned in taxonomy
eligible turnover of turnover aligned turnover mitigation adaption economy activity activity eligible
Economic activities Code % Million SEK % % % % % % % E T %
Electricity generation using solar photovoltaic technology CCM 4.1 0% 184 0% 0% N/A N/A N/A N/A N/A 100%
Electricity generation from wind power CCM 4.3 10% 22,695 10% 10% N/A N/A N/A N/A N/A 100%
Electricity generation from hydropower CCM 4.5 5% 12,650 5% 5% N/A N/A N/A N/A N/A 100%
Transmission and distribution of electricity CCM 4.9 7% 15,483 7% 7% N/A N/A N/A N/A N/A E 99%
Storage of electricity CCM 4.10 3% 7,264 3% 3% N/A N/A N/A N/A N/A E 100%
Storage of thermal energy CCM 4.11 0% 37 0% 0% N/A N/A N/A N/A N/A E 100%
District heating/cooling distribution CCM 4.15 1% 2,385 1% 1% N/A N/A N/A N/A N/A 100%
Installation and operation of electric heat pumps CCM 4.16 0% 488 0% 0% N/A N/A N/A N/A N/A 47%
Cogeneration of heat/cool and power from solar energy CCM 4.17 0% 4 0% 0% N/A N/A N/A N/A N/A 100%
Cogeneration of heat/cool and power from bioenergy CCM 4.20 0% 24 0% 0% N/A N/A N/A N/A N/A 100%
Production of heat/cool from bioenergy CCM 4.24 1% 1,783 1% 1% N/A N/A N/A N/A N/A 92%
Production of heat/cool using waste heat CCM 4.25 0% 131 0% 0% N/A N/A N/A N/A N/A 100%
Electricity generation from nuclear energy in existing installations CCM 4.28 8% 17,727 8% 8% N/A N/A N/A N/A N/A T 100%
Electricity generation from fossil gaseous fuels CCM 4.29 2% 0 0% 0% N/A N/A N/A N/A N/A T 0%
High-efficiency co-generation of heat/cool and power from fossil gaseous fuels CCM 4.30 2% 0 0% 0% N/A N/A N/A N/A N/A T 0%
Production of heat/cool from fossil gaseous fuels in an efficient district heating
and cooling system CCM 4.31 0% 0 0% 0% N/A N/A N/A N/A N/A T 0%
Installation, maintenance and repair of energy efficiency equipment CCM 7.3 0% 131 0% 0% N/A N/A N/A N/A N/A E 100%
Installation, maintenance and repair of charging stations for electric vehicles in buildings
(and parking spaces attached to buildings) CCM 7.4 1% 1,551 1% 1% N/A N/A N/A N/A N/A E 100%
Installation, maintenance and repair of instruments and devices for measuring, regulation
and controlling energy performance of buildings CCM 7.5 0% 58 0% 0% N/A N/A N/A N/A N/A E 100%
Installation, maintenance and repair of renewable energy technologies CCM 7.6 0% 470 0% 0% N/A N/A N/A N/A N/A E 100%
Total KPI turnover 40% 83,066 35% 35% 30% 21%
N/A = Not applicable (for the relevant environmental objective)
Vattenfall Annual and Sustainability Report 2025 137
Sustainability statement / Sustainability notes
EU Taxonomy notes and tables, cont.
Turnover KPI
Out of Vattenfall’s total turnover in 2025 of SEK 234,915 million, while the result from hedging of electricity generation prices,
40 percent (39) is eligible, of which 35 percent (32) is aligned which is done at Group level, is not allocated to the respective
(i.e. compliant with the taxonomy framework). 5 percent (7) of generation type. The result from hedging of electricity genera-
the turnover relates to activities not being aligned and the tion prices, which is recognised as turnover, is not eligible as it
remaining 60 percent (61) relates to turnover that is not eligible. is not allocated to the different types of generation in the seg-
The latter consists primarily of sales of electricity, gas and heat ment reporting (note 6 to the consolidated accounts).
to customers that are not produced by Vattenfall. Note 7 to the consolidated accounts specifies Vattenfall’s net
Vattenfall’s turnover has been assessed against the criteria sales. Net sales include revenues from the sale and distribution
for significant contribution to the climate change mitigation of electricity and heat, sales of gas, electricity trading, and other
(CCM) objective. revenues such as service and consulting assignments as well
Vattenfall’s share of turnover attributable to enabling activi- as connection fees. However, the taxonomy is reported from a
ties amounts to 30 percent of taxonomy aligned turnover, production perspective whereby Vattenfall takes into account
mainly related to the transmission and distribution of electricity group internal sales for the electricity generating units, which
(4.9) and storage of electricity (4.10). Turnover attributable to are allocated to electricity generating activities and at the same
transitional activities amounts to 21 percent of aligned turnover time reduce non-eligible sales revenue by a corresponding
and consists entirely of the activity electricity generation from amount. This is not reflected in note 7 to the consolidated
nuclear energy in existing installations (4.28). accounts, where Vattenfall presents external sales from a sales
The majority of Vattenfall’s taxonomy-aligned turnover relates perspective. A link between the table in note 7 and the taxono-
to electricity generation from wind power (4.3), electricity gener- my’s breakdown of sales by activity is therefore not possible.
ation from nuclear energy in existing installations (4.28), trans- Vattenfall Services perform construction activities on distri-
mission and distribution of electricity (4.9) and electricity gener- bution and transmission grids to external customers and the
ation from hydropower (4.5). Vattenfall’s generation of heat and turnover from these services have been allocated to the activity
electricity from gas (4.29– 31) represents the absolute majority transmission and distribution of electricity (4.9).
of not aligned turnover. After the divestment of the heat business in Berlin in 2024
As stated in the accounting principles on page 134, taxon- Vattenfall has no turnover from heat and electricity produced
omy reporting is based on Vattenfall’s segment reporting. In by coal.
this reporting, sales are based on spot prices (market prices),
Vattenfall Annual and Sustainability Report 2025 138
Sustainability statement / Sustainability notes
EU Taxonomy notes and tables, cont.
Environmental objective of taxonomy aligned activities
EU Taxonomy – Opex
Taxonomy eligible KPI Taxonomy aligned KPI Taxonomy aligned KPI Proportion of
Proportion of taxonomy Monetary value of Proportion of taxonomy Climate change Climate change Water Circular Pollution Biodiversity Enabling Transitional taxonomy aligned in
eligible opex opex aligned opex mitigation adaptation economy activity activity taxonomy eligible
Economic activities Code % Million SEK % % % % % % % E T %
Electricity generation using solar photovoltaic technology CCM 4.1 0% 1 0% 0% N/A N/A N/A N/A N/A 100%
Electricity generation from wind power CCM 4.3 7% 499 7% 7% N/A N/A N/A N/A N/A 100%
Electricity generation from hydropower CCM 4.5 11% 829 11% 11% N/A N/A N/A N/A N/A 100%
Transmission and distribution of electricity CCM 4.9 31% 2,367 31% 31% N/A N/A N/A N/A N/A E 100%
Storage of electricity CCM 4.10 2% 159 2% 2% N/A N/A N/A N/A N/A E 100%
District heating/cooling distribution CCM 4.15 2% 148 2% 2% N/A N/A N/A N/A N/A 83%
Installation and operation of electric heat pumps CCM 4.16 0% 8 0% 0% N/A N/A N/A N/A N/A 71%
Cogeneration of heat/cool and power from bioenergy CCM 4.20 0% 10 0% 0% N/A N/A N/A N/A N/A 100%
Production of heat/cool from bioenergy CCM 4.24 3% 214 3% 3% N/A N/A N/A N/A N/A 100%
Electricity generation from nuclear energy in existing installations CCM 4.28 27% 2,049 27% 27% N/A N/A N/A N/A N/A T 100%
Electricity generation from fossil gaseous fuels CCM 4.29 3% 0 0% 0% N/A N/A N/A N/A N/A T 0%
High-efficiency co-generation of heat/cool and power from fossil gaseous fuels CCM 4.30 2% 0 0% 0% N/A N/A N/A N/A N/A T 0%
Production of heat/cool from fossil gaseous fuels in an efficient district heating
and cooling system CCM 4.31 1% 0 0% 0% N/A N/A N/A N/A N/A T 0%
Installation, maintenance and repair of energy efficiency equipment CCM 7.3 0% 5 0% 0% N/A N/A N/A N/A N/A E 100%
Installation, maintenance and repair of instruments and devices for measuring,
regulation and controlling energy performance of buildings CCM 7.5 0% 2 0% 0% N/A N/A N/A N/A N/A E 100%
Installation, maintenance and repair of renewable energy technologies CCM 7.6 0% 2 0% 0% N/A N/A N/A N/A N/A E 100%
Total KPI opex 89% 6,294 82% 82% 40% 33%
N/A = Not applicable (for the relevant environmental objective)
Vattenfall Annual and Sustainability Report 2025 139
Sustainability statement / Sustainability notes
EU Taxonomy notes and tables, cont.
Aligned Maintenance Research & Short term
Proportion of taxonomy aligned Opex Opex 2025 costs development leases
Opex KPI
Economic activities Code Million SEK Million SEK Million SEK Million SEK 82 percent (80) of Vattenfall’s opex in 2025 was aligned (i.e. (4.9). Opex attributable to transitional activities amounts to 33
compliant with the taxonomy framework). 7 percent (8) of the percent of aligned opex and consists entirely of the activity
Electricity generation using solar photovoltaic technology CCM 4.1 1 0 0 1
opex relates to activities that were not aligned and the remain- electricity g
eneration from nuclear energy in existing installa-
Electricity generation from wind power CCM 4.3 499 124 48 328
ing 11 percent (12) relates to non-eligible opex. tions (4.28).
Electricity generation from hydropower CCM 4.5 829 739 86 4
All opex in Vattenfall has been assessed against the criteria The majority of Vattenfall’s taxonomy-aligned opex relates to
Transmission and distribution of electricity CCM 4.9 2,367 2,232 96 39
Storage of electricity CCM 4.10 159 129 28 2
for significant contribution to the climate change mitigation transmission and distribution of electricity (4.9), electricity gen-
District heating/cooling distribution CCM 4.15 148 144 0 5
(CCM) and climate change adaptation (CCA). All opex contrib- eration from nuclear energy in existing installations (4.28),
Installation and operation of electric heat pumps CCM 4.16 8 0 0 8
utes to both climate objectives, though cannot be allocated to hydropower (4.5) and wind power (4.3). Vattenfall’s generation of
Cogeneration of heat/cool and power from bioenergy CCM 4.20 10 10 0 1
respective objective and are therefore only reported under heat and electricity from gas (4.29–31) represents the absolute
Production of heat/cool from bioenergy CCM 4.24 214 198 16 0
climate change mitigation (CCM). majority of not aligned opex.
Electricity generation from nuclear energy in existing installations CCM 4.28 2,049 2,001 41 7 Vattenfall’s share of opex attributable to enabling activities Vattenfall’s total opex amounted to SEK 7,671 million. The
Installation, maintenance and repair of energy efficiency equipment CCM 7.3 5 0 0 5 amounts to 40 percent of taxonomy-aligned opex, mainly absolute majority, as in previous year, consists of maintenance
Installation, maintenance and repair of instruments and devices for measuring, related to the transmission and distribution of electricity activity costs. The distribution of opex is shown in the table.
regulation and controlling energy performance of buildings CCM 7.5 2 0 0 2
Installation, maintenance and repair of renewable energy technologies CCM 7.6 2 0 0 2
Total KPI opex 6,294 5,576 315 402
Vattenfall Annual and Sustainability Report 2025 140
Sustainability statement / Sustainability notes
ESRS content index
Disclosure Page and/or Disclosure Page and/or
ESRS topic requirement Disclosure title note number(s) Comment ESRS topic requirement Disclosure title note number(s) Comment
ESRS 2 BP-1 General basis for preparation of sustainability statements 75 E4 E4-4 Targets related to biodiversity and ecosystems 98
ESRS 2 BP-2 Disclosures in relation to specific circumstances 75, 81 E4 E4-5 Impact metrics related to biodiversity and ecosystems change 99–100
ESRS 2 GOV-1 The role of the administrative, management and supervisory bodies 59–64, 67–70, E4 E4-6 Anticipated financial effects from biodiversity and ecosystem-related N/A Phase-in
110 risks and opportunities requirement,
ESRS 2 GOV-2 Information provided to and sustainability matters addressed by the 59–60, 76 not included
entity’s administrative, management and supervisory bodies E5 E5.IRO-1 Description of the processes to identify and assess material resource 131
ESRS 2 GOV-3 Integration of sustainability-related performance in incentive schemes 76 use and circular economy-related impacts, risks and opportunities
ESRS 2 GOV-4 Statement on due diligence 76, 107 E5 E5-1 Policies related to resource use and circular economy 102
ESRS 2 GOV-5 Risk management and internal controls over sustainability reporting 76 E5 E5-2 Actions and resources related to resource use and circular economy 105
ESRS 2 SBM-1 Strategy, business model and value chain 77–78 E5 E5-3 Targets related to resource use and circular economy 103
ESRS 2 SBM-2 Interests and views of stakeholders 79 E5 E5-4 Resource inflows 104
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction 81–82 E5 E5-5 Resource outflows (Waste) 104
with strategy and business model E5 E5-6 Anticipated financial effects from resource use and circular N/A Phase-in
ESRS 2 IRO-1 Description of the processes to identify and assess material impacts, 80–81 economy-related impacts, risks and opportunities requirement,
risks and opportunities not included
ESRS 2 IRO-2 Disclosure requirements in ESRS covered by the undertaking’s 141–142 S1 S1.SBM-2 Interests and views of stakeholders 79
sustainability statement S1 S1.SBM-3 Material impacts, risks and opportunities and their interaction 109
E1 E1.GOV-3 Integration of sustainability-related performance in incentive schemes 76 with strategy and business model
E1 E1-1 Transition plan for climate change mitigation 87–90 S1 S1-1 Policies related to own workforce 107, 109
E1 E1.SBM-3 Material impacts, risks and opportunities and their interaction 85–86 S1 S1-2 Processes for engaging with own workers and 108, 109–110
with strategy and business model workers’ representatives about impacts
E1 E1.IRO-1 Description of the processes to identify and assess material impacts, 85–86, 128 S1 S1-3 Processes to remediate negative impacts and channels for own work- 108, 110
risks and opportunities ers to raise concerns
E1 E1-2 Policies related to climate change mitigation and adaptation 83, 87 S1 S1-4 Taking action on material impacts on own workforce, and approaches 110–111
to mitigating material risks and pursuing material opportunities related
E1 E1-3 Actions and resources in relation to climate change policies 94
to own workforce, and effectiveness of those actions
E1 E1-4 Targets related to climate change mitigation and adaptation 90
S1 S1-5 Targets related to managing material negative impacts, advancing 110–111
E1 E1-5 Energy consumption and mix 92, 127–128 positive impacts, and managing material risks and opportunities
E1 E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions 93, 127–128 S1 S1-6 Characteristics of the undertaking’s employees 110–111, 131
E1 E1-7 GHG removals and GHG mitigation projects financed through 93, 127–128 S1 S1-7 Characteristics of non-employee workers in the undertaking’s own N/A Phase-in
carbon credits workforce requirement,
E1 E1-8 Internal carbon pricing 127 not included
E1 E1-9 Anticipated financial effects from material physical and transition risks N/A Phase-in S1 S1-14 Health and safety metrics 111
and potential climate-related opportunities requirement, S2 S2.SBM-2 Interests and views of stakeholders
not included 79
E4 E4-1 Transition plan and consideration of biodiversity and ecosystems 97 S2 S2.SBM-3 Material impacts, risks and opportunities and their interaction 113
in strategy and business model with strategy and business model
E4 E4.SBM-3 Material impacts, risks and opportunities and their interaction 96 S2 S2-1 Policies related to value chain workers 107, 113
with strategy and business model S2 S2-2 Processes for engaging with value chain workers 108, 114
E4 E4.IRO-1 Description of processes to identify and assess material biodiversity 130–131 about impacts
and ecosystem-related impacts, risks and opportunities S2 S2-3 Processes to remediate negative impacts and 108, 115
E4 E4-2 Policies related to biodiversity and ecosystems 83, 96 channels for value chain workers to raise concerns
E4 E4-3 Actions and resources related to biodiversity and ecosystems 100–101
Vattenfall Annual and Sustainability Report 2025 141
Sustainability statement / Sustainability notes
ESRS content index, cont.
Disclosure Page and/or
ESRS topic requirement Disclosure title note number(s) Comment
S2 S2-4 Taking action on material impacts on value chain workers, and 115–116
approaches to managing material risks and pursuing material
opportunities related to value chain workers, and effectiveness
of those action
S2 S2-5 Targets related to managing material negative impacts, advancing 115
positive impacts, and managing material risks and opportunities
S3 S3.SBM-2 Interests and views of stakeholders 79
S3 S3.SBM-3 Material impacts, risks and opportunities and their interaction 117
with strategy and business model
S3 S3-1 Policies related to affected communities 107, 117
S3 S3-2 Processes for engaging with affected communities about impacts 108, 117–118
S3 S3-3 Processes to remediate negative impacts and channels for affected 108, 118
communities to raise concerns
S3 S3-4 Taking action on material impacts on affected communities, and 118–119
approaches to managing material risks and pursuing material
opportunities related to affected communities, and effectiveness
of those actions
S3 S3-5 Targets related to managing material negative impacts, advancing 118
positive impacts, and managing material risks and opportunities
Security of MDR-P Minimum Disclosure Requirements – Policies 120
supply
Security of MDR-A Minimum Disclosure Requirements – Actions 120
supply
Security of MDR-T Minimum Disclosure Requirements – Targets 120
supply
Security of MDR-M Minimum Disclosure Requirements – Metrics 120
supply
G1 G1.GOV-1 The role of the administrative, management and supervisory bodies 59–70, 76
G1 G1.IRO-1 Description of the processes to identify and assess material impacts, 80
risks and opportunities
G1 G1-1 Corporate culture and business conduct policies 124–125
G1 MDR-P Minimum Disclosure Requirements – Policies 124–125
G1 MDR-A Minimum Disclosure Requirements – Actions 125
G1 MDR-T Minimum Disclosure Requirements – Targets 125
G1 MDR-M Minimum Disclosure Requirements – Metrics 125
Vattenfall Annual and Sustainability Report 2025 142
Sustainability statement / Sustainability notes
ESRS disclosure requirements incorporated by reference
Disclosure requirement Section in the report Page Description
GOV-1 The undertaking shall provide disclosures in relation to specific circumstances Corporate Governance Report 64 See “Vattenfall’s organisation” about unbundling
Composition of the administrative, management and supervisory bodies Corporate Governance Report 67–70 See Board of Directors and Executive Group Management CVs
The number of executive and non-executive members Corporate Governance Report 61, 67–70 See Board of Directors and Executive Group Management CVs, “The Board’s composition”
Representation of employees and other workers Board committees & board composition 61–62 See “Board committees”, “The Board’s composition”
Experience relevant to the sectors, products and geographic location Corporate Governance Report 61, 67–70 See Board of Directors and Executive Group Management CVs “Appointment of the Board”
Gender diversity of the Board of Directors Corporate Governance Report 60–61 See “Appointment of the Board”
Percentage of independent board members Corporate Governance Report 61, 67–68 See “The Board’s composition”
Responsible body for oversight of impacts, risks and opportunities Corporate Governance Report 59–60 See “The Board’s duties”
Board responsibilities Corporate Governance Report 59–60, 62 See “The Board’s duties”, “CEO and Group Management”
Description of management’s role in the governance processes Corporate Governance Report 62–66 See “CEO and Group Management”. Internal Audit Internal Governance Internal control for sustainability topics are
part of regular risk and control processes. IROs identified in the DMA of 2025 will be integrated into the Risk
Management Reporting System.
How supervisory bodies oversee target-setting and how these are monitored Corporate Governance Report, 62–64 See “Vattenfall’s organisation”, “CEO and Group Management”
CEO and Group management
Description of management and supervisory bodies knowledge CEO and Group Management. 59-60, 67–70 See Board of Directors and Executive Group Management CVs, “The Board’s duties”
No specific controls on management
for sustainability topics in place.
GOV-2 Description of processes to identify and assess material impacts, risks and opportunities Corporate Governance Report 60–62 See ’’Board meeting’’, ’’Audit committee’’
How governance bodies consider impacts, risks and opportunities regarding strategy, CEO and Group Management section 59–62 See “CEO and Group Management”, “Board of Directors”, “The Board’s yearly planning”
actions and processes and Board of Directors and “The Board’s main items of business in 2025” 1
GOV-3 Sustainability linked incentive schemes and remuneration Corporate Governance Report 65 See “Guidelines for remuneration of senior executives”
GOV-5 Process of risk management and internal control in relation to sustainability reporting Corporate Governance Report 61–62 See “Audit Committee”
Risk assessment procedure Corporate Governance Report 61–62 See “Audit Committee”
Main risks and mitigation actions Corporate Governance Report 61–62 See “Audit Committee”
Internal controls relating to findings in risk assessment Corporate Governance Report 61–62 See “Audit Committee”
Description of periodic reporting of findings in (d) Corporate Governance Report 61–62 See “Audit Committee”
MDR-P Description of the key contents of the policy, including its general objectives and Corporate Governance Report 63–64 See “Vattenfall Management System”
which material impacts, risks or opportunities the policy relates to and the process
for monitoring
E1 IRO-1 The assessment of how its assets and business activities may be exposed and Risk Management 45 See “Enterprise Risk Management”
are sensitive to these climate-related hazards, creating gross physical risks for
the undertaking
E1-2 The most senior level in the undertaking’s organisation that is accountable for the Corporate Governance Report 62 See “CEO and Group Management”,
implementation of the policy
S1-9 The gender distribution in number and percentage at top management level Corporate Governance Report 67–70 See Board of Directors and Executive Group Management CVs, “The Board’s composition”
1. Sustainability matters are regularly addressed in various forums during the reporting year. A recurring item in the board’s yearly planning is “strategic sustainability issues”. In 2024, as well as in 2025, the following item was added to the Board’s agenda:
“Sustainability items, focusing on fulfilling requirements due to new legislation based on the EU directive CSRD”. In addition, the Board of Directors and EGM were identified as key stakeholders in the DMA, and thus involved in the development of material sustainability IROs.
Vattenfall Annual and Sustainability Report 2025 143
Sustainability statement / Sustainability notes
List of datapoints in cross-cutting and topical standards that derive from other EU legislation
General Disclosures
ESRS topic Disclosure requirement Data point(s) Title Regulation Material Page
General GOV-1 21d Board’s gender diversity ratio SFDR Y 110
GOV-1 21e Percentage of independent Board members SFDR Y 61
GOV-4 30 Statement on due diligence SFDR Y 76
SBM-1 40d i Activity in fossil fuel sector SFDR Y N/A phased in
SBM-1 40d ii-iv Activity in chemical, controversial weapons and/or tobacco industry SFDR N/A N/A
Environmental Disclosures
ESRS topic Disclosure requirement Data point(s) Title Regulation Material Page
Climate change E1-1 14 Transition plan for climate change mitigation EU Climate Law Y 88, 89
E1-1 16g Exclusion from EU Paris-aligned benchmarks Pillar 3; Benchmark regulation Y 90
E1-4 34 Emission reduction targets SFDR; Pillar 3; Benchmark regulation Y 90
E1-5 37 Energy consumption and mix SFDR Y 146
E1-5 38 Energy consumption from fossil sources disaggregated by sources SFDR Y 146
(only high climate impact sectors)
E1-5 40–43 Energy intensity associated with activities in high climate impact sectors SFDR Y 146
E1-6 44 Gross scopes 1, 2, 3 and Total GHG emissions SFDR; Pillar 3; Benchmark regulation Y 93
E1-6 53–55 Gross GHG emissions intensity SFDR; Pillar 3; Benchmark regulation Y 93
E1-7 56 GHG removals and carbon credits EU Climate Law Y 93
E1-9 66 Exposure of the benchmark portfolio to climate-related physical risks Benchmark regulation Y N/A phased in
E1-9 66a Disaggregation of monetary amounts by acute and chronic physical risk Pillar 3 Y N/A phased in
E1-9 66c Location of significant assets at material physical risk Pillar 3 Y N/A phased in
E1-9 67c Breakdown of the carrying value of its real estate assets by energy-efficiency classes Pillar 3 N N/A
E1-9 69 Degree of exposure of the portfolio to climate-related opportunities Benchmark regulation Y N/A phased in
Pollution of air, water and soil E2-4 28 Emissions to air, water, and soil SFDR N N/A
Water and marine resources E3-1; E3-4 9, 13, 14, 28c, 29 All disclosures SFDR N N/A
Biodiversity and ecosystems E4 IRO-1 16a-c Activities in biodiversity-sensitive areas, impacts related to land degradation, SFDR Y 98
desertification and soil sealing, and operations affecting threatened species
E4-2 24b-d Policies related to biodiversity and ecosystems SFDR Y 96
Resource use and circularity E5-5 37d; 39 Resource outflows (non-recycled waste; hazardous waste and radioactive waste) SFDR Y 104
Vattenfall Annual and Sustainability Report 2025 144
Sustainability statement / Sustainability notes
List of datapoints in cross-cutting and topical standards that derive from other EU legislation, cont.
Social Disclosures
ESRS topic Disclosure requirement Data point(s) Title Regulation Material Page
Own workforce S1 SBM-3 14g; 14f Risks of incidents of child labour and forced labour SFDR N N/A
S1-1 20 General approach to human rights in own workforce SFDR Y 107–109
S1-1 21 Policies are aligned with internationally recognised instruments Benchmark regulation Y 107–109
S1-1 22 Policies addressing human trafficking, forced labour and child labour SFDR Y 107–109
S1-1 23 Policies on accident prevention SFDR Y 107–109
S1-3 32c Processes to remediate negative impacts and channels for own workforce to raise concerns SFDR Y 110
S1-14 88b; 88c Health and safety metrics SFDR; Benchmark regulation Y 111
S1-14 88e Health and safety metrics SFDR Y 111
S1-16 97a; 97b Remuneration metrics (pay gap and total remuneration) SFDR; Benchmark regulation N Note 111 and page 122
S1-17 103a; 104a Incidents, complaints and severe human rights impacts SFDR; Benchmark regulation N N/A
Workers in the value chain S2 SBM-3 11b Risks of incidents of child labour and forced labour SFDR N N/A
S2-1 17; 18 General approach to human rights for workers in the value chain SFDR Y 107, 113
S2-1 19 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines SFDR; Benchmark regulation Y 107, 113
S2-1 19 Due diligence policies on issues addressed by the fundamental International Labor Organisation Benchmark regulation Y 107, 113
(ILO) Conventions 1 to 8
S2-4 36 Severe human rights issues and incidents connected to value chain workers SFDR Y 115
Affected communities S3-1 16; 17 General approach to human rights for affected communities SFDR; Benchmark regulation Y 107, 117
S3-4 36 Severe human rights issues and incidents connected to affected communities SFDR Y 117
Consumers and end users S4-1 16; 17 General approach to human rights for consumers and end users SFDR; Benchmark regulation N N/A
S4-4 35 Severe human rights issues and incidents connected to consumers and end users SFDR N N/A
Governance Disclosures
ESRS topic Disclosure requirement Data point(s) Title Regulation Material Page
Governance G1-1 10b; 10d Business conduct policies, whistleblowing and corporate culture SFDR Y 124–125
G1-4 24a; 24b Incidents of corruptions or bribery SFDR; Benchmark regulation N N/A
1. Refers to the Notes to the consolidated accounts.
Vattenfall Annual and Sustainability Report 2025 145
Sustainability statement / Sustainability notes
Ten-year overview of sustainability data (according to financial consolidation)
Financial consolidation means that historical numbers are not adjusted for any divestments. For energy and emissions data (ESRS
E1-5, E1-6, and E1-7) and our climate targets consolidated according to the GHG Protocol see pages 90–93.
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Total electricity generation, TWh 157.5 124.6 126.8 126.0 109.1 108.1 105.7 97.7 95.7 98.3 Share of fossil sources in total
Total renewable sources 39.0 40.7 40.2 42.4 47.0 49.1 49.8 46.9 48.4 50.9 consumption, % 56.5% 33.9% 32.5% 30.4% 30.6% 26.9% 25.2% 23.2% 16.7% 11.6%
– of which hydropower (excluding Total energy consumption per
pumped storage)1 32.3 32.8 32.1 32.6 35.9 37.6 37.3 32.9 31.1 33.5 net revenue, MWh/SEK3 — 1,826.3 1,684.4 1,449.1 1,130.6 975.4 701.9 534.7 587.2 609.1
– of which wind power 5.8 7.6 7.8 9.5 10.8 11.2 12.1 13.7 17.1 17.2 Nuclear, Uranium (tonnes) 119.6 105.9 118.0 136.4 98.6 119.2 83.2 128.5 65.9 102.1
– of which solar power — — — — — 0.1 0.1 0.1 0.0 0.1 Scope 1 (emissions to air)4, Mt
– of which biomass and waste CO2e 5 68,4 23.2 22.6 18.4 12.2 10.3 9.5 7,9 5.2 3.46
(biogenic) 0.9 0.3 0.3 0.3 0.2 0.3 0.3 0.3 0.2 0.1 Biogenic CO2 7 1,2 1.3 1.3 1.4 1.2 1.4 1.3 1,3 1.3 1.1
Total nuclear 46.9 51.9 55.0 53.4 39.3 40.4 39.6 37.4 37.9 40.2
Fossil sources Scope 2, MtCO2e
(incl. non-biogenic waste) 71.6 32.0 31.6 30.3 22.8 18.6 16.3 13.3 9.4 7.1 Market-based 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.04 0.03
Location-based — 0.1 0.1 0.2 0.1 0.1 0.1 0.1 0.03 0.03
Electricity delivered from storage1 2.5 2.8 3.5 3.2 3.8 3.3 3.2 3.2 3.5 3.8
CO2e intensity, g/kWh
Total heat production — 19.7 18.9 15.5 14.2 16.1 14.6 14.5 9.2 4.5 (Scope 1 and 2 market-based)1 380.6 161.3 155.7 130.7 100.0 83.5 79.9 71.3 49.9 33.0
Renewable sources — 3.0 3.0 3.2 2.7 3.3 3.2 3.2 2.9 2.5 CO2e intensity, g/SEK
Fossil sources (incl. non-biogenic waste) — 16.7 15.9 12.3 11.5 12.8 11.4 11.3 6.2 2.0 (Scope 1 and 2 market-based) — 172.3 149.2 111.1 77.7 57.6 40.1 27.6 21.3 14.4
Total energy consumption, TWh 344.4 246.8 256.2 241.1 179.6 175.7 168.2 155.2 144.2 143.1 Scope 3, MtCO2e — 39.4 40.9 34.7 28.5 29.9 23.3 23.2 21.5 19.8
Total renewable sources 6.6 4.8 5.1 5.2 4.6 5.2 5.0 4.9 4.3 3.7 Category 1 – Purchased goods and ser-
vices — — — — — — — 0.5 0.3 0.2
– of which biomass, waste (biogenic) 5.7 3.7 3.9 4.1 3.5 4.0 3.8 3.7 3.4 2.7
Category 2 – Capital Goods — 0.4 0.2 0.5 0.8 0.9 1.1 0.8 0.8 0.8
– of which electricity, heat and steam
(renewable) 0.9 0.9 1.0 0.9 1.0 1.0 1.0 0.9 0.8 0.8 Category 3 – Fuel and energy related
activities — 23.5 24.0 19.6 14.6 15.1 11.9 12.4 9.8 7.3
– of which self-generated, non-fuel
renewable energy 0.1 0.2 0.2 0.1 0.2 0.2 0.2 0.2 0.2 0.2 Category 5 – Waste generated in
operations — 0.3 0.2 0.2 0.2 0.2 0.2 0.1 0.02 0.04
Share of renewable sources in total
consumption 1.9% 2.0% 2.0% 2.1% 2.5% 3.0% 3.0% 3.1% 3.0% 2.6% Category 6 – Business travel 0.030 0.030 0.025 0.017 0.008 0.002 0.008 0.011 0.013 0.007
Total energy from uranium2, TWh 143.1 158.2 167.8 162.7 120.1 123.3 120.8 114.3 115.7 122.7 Category 11 – Use of sold products — 15.0 16.2 14.2 12.9 13.6 10.1 9.4 10.6 11.4
Share of nuclear sources in total Optional disclosure1
consumption, % 41.5% 64.1% 65.5% 67.5% 66.9% 70.2% 71.8% 73.7% 80.2% 85.8%
Emissions related to losses
Total fossil sources 195 83.7 83.3 73.2 54.9 47.2 42.4 35.9 24.0 16.6 in pumped storage, tCO2e — — — — 0.2 0.2 0.2 0.2 0.2 0.2
– of which gas 32.5 36.8 38.6 44.3 41.8 38.7 34.7 28.4 20.3 15.4 Total Scope 1, 2, and 3 market-based
– of which hard coal 43.9 42.1 41.1 25.6 10.7 5.9 5.8 5.3 2.3 0.0 emissions, MtCO2e — 62.7 63.6 53.2 40.9 40.2 32.9 31.2 26.7 23.2
– of which lignite 113 1.5 — — — — — — — — Total Scope 1, 2, and 3 location-based
– of which peat 0.5 0.4 0.6 0.2 — — — — — — emissions, MtCO2e — 62.7 63.6 53.3 40.9 40.2 32.9 31.2 26.7 23.2
– of which waste (non-biogenic) 2.6 1.2 1.2 1.2 0.7 0.8 0.7 0.8 0.9 0.8
– of which other fuels, including oil 1.7 1.5 1.7 1.6 0.3 0.4 0.3 0.3 0.1 0.1
– of which electricity, heat and steam
(non-renewable) 0.3 0.2 0.2 0.3 1.4 1.4 0.9 1.3 0.4 0.3
1. Electricity generation from pumped storage (hydropower) is reported separately under “Electricity delivered from storage”. This also affects the intensity 5. In 2016, only CO2 was included. From 2017, the numbers include CH4, N2O and SF6.
of the carbon dioxide equivalents, g/kWh. 6. O f the total Scope 1 emissions 0.029 MtCO2e consist of SF6, CH4 and N2O emissions. Characterisation factors are obtained from
2. This is the total energy consumption from uranium at our nuclear plants and the nuclear produced electricity consumption at other Vattenfall assets. the IPCC Sixth Assessment report.
3. The energy consumption per net revenue has been adjusted 2016–2025 due to a unit error. 7. Scope 1 biogenic CO2 emissions come from the combustion of biomass.
4. Either calculated or measured directly in different countries. Emission factors applied depend on the technology and local methodologies.
Vattenfall Annual and Sustainability Report 2025 146
Sustainability statement / Sustainability notes
Ten-year overview of sustainability data, cont.
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Waste and by-products, ktonnes Working related accidents
Hazardous waste 130 61 59 72 37 50 49 37 42 47 Internal LTIF (employees) 2.0 1.5 1.9 2.1 1.8 1.7 1.1 1.5 1.4 1.7
Non-hazardous waste 198 147 98 75 39 40 37 28 21 65 External LTI (contractors)4 101 80 71 88 78 86 62 73 67 63
Ash from coal and lignite 4,692 671 579 423 160 110 106 104 43 —
Ash from biomass 41 37 38 33 22 21 25 18 12 16
Slag from waste incineration 237 168 170 173 100 105 99 76 97 91
Gypsum 2,341 169 185 128 45 26 22 26 12 1
Radioactive waste 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Low and medium radioactive
operational waste, m3 1,013 912 829 411 628 434 408 214 606 369 Other emissions to air, ktonnes
(non-material disclosure)
Core components, tonnes 17 15 31 13 58 84 1 21 1 20
Nitrogen oxides (NOx) 10,2 9.8 9.9 7.4 5.5 5 4.6 4,3 3.0 1.7
Spent nuclear fuel, tonnes 124 175 137 260 274 136 157 171 188 103
Sulphur dioxide (SO2) 4,2 4.1 4.2 2.3 1.5 1.3 1.2 1,1 1.0 0.7
SAIDI (minutes/customer) Particulate matter (PM) 0,3 0.3 0.2 0.1 0.1 0.1 0.1 0,1 0.0 0.0
Sweden 150 125 187 439 148 112 157 132 123 153
Gender diversity (non-material disclosure)
SAIFI (number/customer) Female managers % 22% 23% 24% 26% 27% 30% 30% 31% 34% 34%
Sweden 2.1 1.8 2.9 2.4 2.0 1.8 2.1 1.9 1.9 1.7
Share of managers per age
Our people category total (non-material disclosure)
Number employees, FTE, 19,935 20,041 19,910 19,814 19,859 18,835 19,638 20,994 20,655 20,869 –29 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%
– of which females 4,773 4,827 4,840 5,000 5,083 4,985 5,439 6,017 6,288 6,395 30–49 56% 58% 56% 56% 57% 57% 56% 60% 61% 59%
– of which temporary employed 50– 43% 40% 43% 43% 42% 42% 43% 39% 38% 40%
(not permanent contract) 550 609 618 664 723 686 830 902 897 722
Employee turnover, % — — — — 7.5% 8.0% 10.2% 9.0% 9.4% 9.5%
Sick leave
– men % 3.5% 3.6% 3.5% 3.2% 3.1% 3.0% 2.7% 3.0% 2.6% 2.7% 1. Optional Information in GHG Protocol in addition to Scope 1, 2 and 3.
– females % 5.4% 5.7% 5.4% 5.1% 4.6% 4.2% 3.6% 4.0% 3.5% 3.8% 2. As the calculation of LTIF for subcontractors is not reliable, only LTI is reported.
Vattenfall Annual and Sustainability Report 2025 147
Sustainability statement / Sustainability notes
ESG Ratings
Sustainability and environment, social, governance (ESG) rat- Ratlng firm Focus Score Latest assessment
ings are important for customers, investors, and stakeholders
A leading global platform for corporate environmental disclosures. CDP evaluates companies, A 2025, December
to gain an understanding of a company’s performance. cities, states and regions.
Vattenfall believes in transparency and participates in numer- Assessment
ous ratings, both voluntarily and at the request of customers. f requency: yearly
Learn more
For the latest ESG ratings assessment information An online platform that enables companies to monitor the performance of their supply chains by Platinum rating: top 1 percent in the energy sector. 2026, February
providing supplier sustainability ratings.
please see our webpage.
Assessment
Read more about the respective ratings via the links below: f requency: yearly
CDP
Ecovadis ESG rating mainly for the investment community. The assessment spans over a range of ESG B–, “Prime” 2025, December
Institutional Shareholder Services, ISS issues that are analysed on the basis of up to 100 rating criteria, most of them sector specific.
MSCI Assessment
f requency: 3 years
Sustainalytics
World Benchmarking Alliance
ESG rating mainly for the investment community. Ranks companies according to their ESG risk Score: AAA / AAA 2024, December
exposure and how well they manage those risks relative to peers.
Assessment
f requency: yearly
ESG rating mainly for the investment community. Ranks companies according to their ESG risk ESG risk rating: Medium (Strong management score and high 2025, July
exposure and how well they manage those risks relative to peers. exposure). Top 50 percent of companies in subindustry.
Assessment
f requency: yearly
Benchmark assessing 2,000 of the world’s most influential companies that ranks their contribu- ACT Core total score (A–G): B 2026, January
tions to a sustainable future for people and the planet. The ACT Core rate score reflects a compa-
ny’s transition plan quality and its contribution to the low-carbon transition. All benchmarks per- Assessment
formed by the World Benchmarking Alliance can be found on their website. f requency: yearly
Vattenfall Annual and Sustainability Report 2025 148
Sustainability statement / Sustainability notes
Auditor’s report on limited review of Vattenfall AB’s Investor Report
To Vattenfall AB, corporate identity number 556036-2138 Auditor’s responsibility We are independent of Vattenfall AB in accordance with pro-
Our responsibility is to express a conclusion on the basis of fessional ethics for accountants in Sweden and have otherwise
Introduction our limited review. Our assignment is limited to the historical fulfilled our ethical responsibilities in accordance with these
We have been appointed by the Management and Chief Execu- information presented and therefore does not extend to requirements.
tive Officer of Vattenfall AB (“Vattenfall”) to conduct a limited forward-looking statements. The procedures performed in a limited assurance engage-
review of Vattenfall’s perform an audit of the Green Bond Inves- We have performed our limited assurance engagement in ment do not enable us to obtain the level of assurance that
tor Report for the year 2025 (“Investor Report”). The Investor accordance with ISAE 3000 Assurance Engagements Other would make us aware of all significant matters that might have
Report can be found on page 22 of Vattenfall’s Annual- and Than Audits or Reviews of Historical Financial Information. A been identified had an audit been performed. Consequently,
Sustainability Report for the year 2025. limited assurance engagement consists of making inquiries, the conclusion expressed based on a limited assurance
primarily to those responsible for the preparation of the investor engagement does not provide the same level of assurance
Responsibilities of the Board of Directors report, performing analytical procedures, and undertaking as a conclusion expressed based on an audit.
and the Managing Director other limited assurance procedures. A limited assurance Our work is based on the criteria selected by the Board of
The Board of Directors and the Managing Director are responsi- engagement is substantially narrower in scope than an audit Directors and the Chief Executive Officer, as described above.
ble for preparing the Investor Report in accordance with the conducted in accordance with the International Standards on We consider these criteria to be suitable for the preparation of
applicable criterias, as presented on page 22 of the Annual- and Auditing and other generally accepted auditing practices. the investor report.
Sustainability Report, and consist of Vattenfall’s Green Financ- The firm applies International Standard on Quality Manage- We believe that the evidence we have obtained during our
ing Framework dated June 2025 and available on Vattenfall’s ment 1 (ISQM 1) and accordingly maintains a comprehensive engagement is sufficient and appropriate to provide a basis for
website, which is applicable to the Investor Report as well as system of quality management including documented policies our conclusion below.
the company’s own accounting and calculation principles. The and procedures regarding compliance with ethical requirements,
Board of Directors and the Managing Director are responsible professional standards and applicable legal and regulatory Opinion
for such internal control as they determine is necessary to ena- requirements. Based on our limited assurance engagement, nothing has
ble the preparation of the Investor Report to the interest rate We have complied with the independence and other ethical come to our attention that causes us to believe that the inves-
benchmark is free from material misstatement, whether due to requirements of the Code of Ethics for Professional Accountants tor report is not, in all material respects, prepared in accordance
fraud or error. issued by the International Ethics Standards Board for Account- with the criteria specified above by the Board of Directors and
ants, which is founded on fundamental principles of integrity, the Chief Executive Officer.
objectivity, professional competence and due care, confidenti-
ality and professional behavior.
Stockholm 24 March 2026
Öhrlings PricewaterhouseCoopers AB
Eva Carlsvi Aleksander Lyckow
Authorised Public Accountant Authorised Public Accountant
Auditor in charge
This is a translation of the Swedish language original. In the event of any differences
between this translation and the Swedish language original, the latter should prevail.
Vattenfall Annual and Sustainability Report 2025 149
Sustainability statement / Sustainability notes
Auditor’s limited assurance report of Vattenfall AB’s statutory sustainability statement
To the general meeting of the shareholders of Vattenfall AB, If we, based on the work performed concerning this informa- A limited assurance engagement involves performing proce- • Through inquiries and analytical procedures, evaluate sup-
corporate identity number 556036-2138 tion, conclude that there is a material misstatement of this dures to obtain evidence about the sustainability statement. porting evidence to the methods for developing significant
other information, we are required to report that fact. We have The auditor selects the procedures to be performed, including estimates and forward-looking information;
Conclusion nothing to report in this regard. assessing the risks of material misstatements in the sustaina- • Obtain an understanding of the process to identify taxono-
We have conducted a limited assurance engagement of the bility statement, whether due to fraud or error. In this risk my-eligible and taxonomy-aligned economic activities and the
sustainability statement for Vattenfall AB for the financial year Responsibilities of the Board of Directors assessment, the auditor considers the parts of the internal con- corresponding disclosures in the sustainability statement.
2025. The sustainability statement is included on pages and the Managing Director trol that are relevant to how the Board of Directors and the Man-
73–105, 107–120, 124–125, 127–145, and 147 in this document. The Board of Directors, and the Managing Director, are respon- aging Director prepares the sustainability statement, in order to • The review of taxonomy disclosures included, but was not lim-
Based on our limited assurance engagement as described in sible for the preparation of sustainability statement in accord- design procedures that are appropriate under the circum- ited to, the following review procedures:
the section Auditor’s responsibility, nothing has come to our ance with Chapter 6, Sections 12–12f of the Swedish Annual stances, but not for the purpose of providing a conclusion on – Analytical review procedures and inquiries to relevant per-
attention that causes us to believe that the sustainability state- Accounts Act, and for such internal control as the Board of the effectiveness of the company’s internal control. The review sonnel
ment does not, in all material respects, meet the requirements Directors and the Managing Director determines necessary to consists of making inquiries, primarily of persons responsible – On a sample basis, perform audit procedures on material
of the Swedish Annual Accounts Act which includes, enable the preparation of the sustainability statement that is for the preparation of the sustainability statement, performing disclosures in the sustainability report regarding the EU
free from material misstatements, whether due to fraud or error. analytical review, and conducting other limited review proce- Green Taxonomy.
• whether the sustainability statement meets the requirements
of ESRS, dures.
Auditor’s responsibility Inherent limitations in preparing
• whether the process the company has carried out to identify Our responsibility is to express a conclusion on whether the The review procedures primarily include: the sustainability s tatement
reported sustainability information has been conducted as sustainability report has been prepared in accordance with Our procedures regarding the process that the company has In reporting forward-looking information in accordance with
described in the sustainability statement, Chapter 6, Sections 12–12f of the Swedish Annual Accounts Act implemented to identify sustainability information to be ESRS, the Board of Directors and the Managing Director of
• compliance with the reporting requirements of the EU’s Green based on our review. The limited assurance engagement has reported included, but were not limited to, the following: Vattenfall AB are required to prepare the forward-looking infor-
Taxonomy Regulation Article 8. been conducted in accordance with FAR’s recommendation mation on the basis of disclosed assumptions about events
• Obtaining an understanding of the process by: that may occur in the future and possible future actions by
RevR 19 Revisorns översiktliga granskning av den lagstadgade – Making inquiries to understand the sources of information
Basis for conclusion hållbarhetsrapporten. This recommendation requires that we Vattenfall AB. Actual outcomes are likely to be different since
used by management (e.g., stakeholder dialogues, business anticipated events frequently do not occur as expected.
We have conducted the limited assurance engagement in plan and perform our procedures to obtain limited assurance plans, and strategy documents); and
accordance with FAR’s recommendation RevR 19 Revisorns över that the sustainability statement is prepared in accordance – Reviewing the company’s internal documentation of its pro-
siktliga granskning av den lagstadgade hållbarhetsrapporten. with these requirements. cess; and
Our responsibility according to this recommendation is further The procedures in a limited assurance engagement vary in
described in the section Auditor’s responsibility. nature and timing from, and are less in extent than for, a reason- • Evaluating whether the information obtained from our actions Stockholm 24 March 2026
We believe that the evidence we have obtained is sufficient able assurance engagement. Consequently, the level of assur- regarding the process implemented by the company is con- Öhrlings Pricewaterhouse Coopers AB
and appropriate to provide a basis for our conclusion. ance obtained in a limited assurance engagement is substan- sistent with the description of the process in the sustainability
tially lower than the assurance that would have been obtained statement.
Other information than the sustainability statement had a reasonable assurance engagement been performed. Eva Carlsvi Aleksander Lyckow
This document also contains other information than the sus- This means that it is not possible for us to obtain such assur- Our procedures regarding the sustainability report included, Authorised Public Accountant Authorised Public Accountant
tainability statement and is found on pages 1–72, 106, 121–123, ance that we become aware of all significant matters that could but were not limited to, the following: Auditor in charge
126, 146, 148, and 152–218. The Board of Directors and the Man- have been identified if a reasonable assurance engagement • Through inquiries, obtain a general understanding of the inter-
aging Director are responsible for this other information. had been performed. nal control environment, reporting processes, and information
Our conclusion on the sustainability statement does not Our firm applies ISQM 1 (International Standard on Quality systems relevant to the preparation of the information in the
cover this other information and we do not express any form of Management), which requires the firm to design, implement sustainability statement.
assurance conclusion regarding this other information. and operate a system of quality management, including poli- • Evaluate whether the information identified by the Process is
In connection with our limited assurance engagement on the cies and procedures regarding compliance with ethical require- included in the sustainability statement;
sustainability statement, our responsibility is to read the infor- ments, professional standards, and applicable legal and regula-
mation identified above and consider whether the information • Evaluate whether the structure and the presentation of the
tory requirements.
is materially inconsistent with the sustainability statement. In sustainability statement is in accordance with the ESRS;
We are independent of Vattenfall AB in accordance with pro-
this procedure we also take into account our knowledge other- fessional ethics for accountants in Sweden and have otherwise • Perform inquires of relevant personnel and analytical proce-
wise obtained in the limited assurance engagement and fulfilled our ethical responsibilities in accordance with these dures on selected information in the sustainability statement];
assess whether the information otherwise appears to be mate- This is a translation of the Swedish language original. In the event of any
requirements. • Perform substantive assurance procedures on selected infor- differences between this translation and the Swedish language original,
rially misstated. mation in the sustainability statement; the latter shall prevail.
Vattenfall Annual and Sustainability Report 2025 150
Sustainability statement / Sustainability notes
Auditor’s reasonable- and limited report on Vattenfall AB’s additional sustainability information
To Vattenfall AB, corporate identity number 556036-2138 Basis for reasonable assurance opinion reasonable and limited assurance that the sustainability report procedures that are appropriate under the circumstances, but
and limited assurance conclusion is prepared in accordance with the criteria described in the sec- not for the purpose of providing a conclusion on the effective-
Introduction We have conducted the engagement in accordance with ISAE tion Responsibilities of the Board of Directors and the Managing ness of the company’s internal control. The assurance engage-
We have been appointed by the Board of Directors and the 3000 (Revised) Assurance Engagements Other than Audits or Director. ment consists of making inquiries, primarily of persons respon-
Managing Director to conduct an assurance engagement on Reviews of Historical Financial Information. Our responsibility The procedures in our limited assurance engagement vary in sible for the preparation of the sustainability report, performing
the additional sustainability information of Vattenfall AB for the under this standard is further described in the section Auditor’s nature and timing from, and are less in extent than for, a reason- analytical review, and conducting other review procedures.
financial year 2025. The company’s additional sustainability responsibility. able assurance engagement. Consequently, the level of assur- The reasonable assurance engagement has covered the fol-
information consists of non‑material sustainability disclosures, We believe that the evidence we have obtained is sufficient ance obtained in a limited assurance engagement is substan- lowing review of additional sustainability information, specified
presented in addition to the statutory sustainability report, on and appropriate to provide a basis for our reasonable assur- tially lower than the assurance that would have been obtained in four key indicators (KPI’s):
pages 73–105, 107–120, 124–125, 127–145, and 147. The addi- ance opinion and limited assurance conclusion. had a reasonable assurance engagement been performed. • Customer engagement – Net Promoter Score (NPS)
tional sustainability information, which is based on specific This means that it is not possible for us to obtain such assur-
• Carbon emission intensity
standards within the ESRS framework, is presented on pages Responsibilities of the Board of Directors ance that we become aware of all significant matters that could
106, 121–123, 126 and 147 of the sustainability report. The addi- and the Managing Director have been identified if a reasonable assurance engagement • Lost Time Injury Frequency (LTIF)
tional sustainability information relating to Vattenfall’s four stra- The Board of Directors and the Managing Director are responsi- had been performed. • Employee engagement index
tegic targets is presented on page 11 of the Annual and Sustain- ble for the preparation of the additional sustainability informa- Our firm applies ISQM 1 (International Standard on Quality
ability Report. tion. The applicable criterias consist of the framework for sus- Management), which requires the firm to design, implement Our assurance engagement is based on the criteria selected by
tainability reporting issued by ESRS that are applicable for the and operate a system of quality management, including poli- the Board of Directors and the Managing Director, as defined
Reasonable assurance opinion sustainability report, as well as the company’s own accounting cies and procedures regarding compliance with ethical require- above.
Based on our reasonable assurance engagement as described and calculation principles. This responsibility also includes ments, professional standards, and applicable legal and regula- The limited assurance procedures primarily include a limited
in the section Auditor’s responsibility, we consider that the addi- such internal control as the Board of Directors and the Manag- tory requirements. review of additional sustainability information consisting of
tional sustainability information presented on page 11, which is ing Director determine is necessary to enable the preparation We are independent of Vattenfall AB in accordance with pro- non-material sustainability disclosures provided in addition to
within the scope of our engagement, has, in all material respects, of sustainability report that is free from material misstatements, fessional ethics for accountants in Sweden and have otherwise the statutory sustainability report:
been prepared in accordance with the criteria specified above whether due to fraud or error. fulfilled our ethical responsibilities in accordance with these
• Pollution (ESRS – E2)
by the Board of Directors and the Chief Executive Officer. requirements.
Auditor’s responsibility The assurance engagement involves performing procedures • Water and Marine Resources (ESRS – E3)
Limited assurance conclusion Our responsibility is to express an opinion on the additional to obtain evidence to support the sustainability report. The • Equal treatment and opportunities (ESRS – S1)
Based on our limited assurance engagement as described in sustainability information based on our assurance engage- auditor selects the procedures to be performed, including
• Tax (ESRS – Entity specific)
the section Auditor’s responsibility, nothing has come to our ment. assessing the risks of material misstatements in the sustaina-
attention that causes us to believe that the additional sustaina- The engagement has been conducted in accordance with bility report, whether due to fraud or error. In this risk assess-
Limitations
bility information presented on pages 106, 121–123, 126 and 147 ISAE 3000 (Revised) Assurance Engagements Other than ment, the auditor considers the parts of the internal control that
Our engagement is limited to historical information and does
is not, in all material respects, prepared in accordance with the Audits or Reviews of Historical Financial Information. This stand- are relevant to how the Board of Directors and the Managing
not include forward-looking information.
relevant ESRS standards applicable to the sustainability infor- ard requires that we plan and perform our procedures to obtain Director prepares the sustainability report, in order to design
mation, as well as the company’s own accounting and calcula-
tion principles.
Stockholm 24 March 2026
Öhrlings PricewaterhouseCoopers AB
Eva Carlsvi Aleksander Lyckow
Authorised Public Accountant Authorised Public Accountant
Auditor in charge
This is a translation of the Swedish language original. In the event of any differences
between this translation and the Swedish language original, the latter shall prevail.
Vattenfall Annual and Sustainability Report 2025 151
Financial
information
Vattenfall Annual and Sustainability Report 2025 152
Financial information
Contents
Amounts in SEK million unless indicated otherwise.
Financial information Note 23 Property, plant and equipment ............................................................. 172 Note 6 Cost of purchases ................................................................................................. 196
Vattenfall’s financial performance ................................................................................... 154 Note 24 Intangible assets ..................................................................................................... 174 Note 7 Average number of employees
Consolidated accounts ................................................................................................................ 157 Note 25 Participations in associated companies and personnel costs .......................................................................................... 196
Notes to the Consolidated accounts ......................................................................... 162 and joint ventures ................................................................................................... 175 Note 8 Income taxes ................................................................................................................ 196
Parent company accounts ....................................................................................................... 192 Note 26 Shares and participations in subsidiaries Note 9 Other non-current receivables ............................................................. 197
Notes to the Parent company accounts ................................................................ 195 and joint operation ................................................................................................ 177 Note 10 Current receivables .............................................................................................. 197
Auditor’s report ........................................................................................................................................ 204 Note 27 Impairments and reversed impairments .................................. 179 Note 11 Other noninterest-bearing liabilities (current) .................... 197
Note 28 Short-term investments ................................................................................. 179 Note 12 Property, plant and equipment ............................................................ 198
Note 29 Cash and cash equivalents ....................................................................... 179 Note 13 Intangible assets: non-current .............................................................. 199
Notes to the Consolidated accounts
Note 30 Financial instruments ....................................................................................... 180 Note 14 Shares and participations .......................................................................... 199
Note 1 Company information ....................................................................................... 162
Note 31 Interest-bearing liabilities Note 15 Short-term investments ................................................................................. 200
Note 2 Accounting policies ............................................................................................. 162
and related financial derivatives ......................................................... 183 Note 16 Cash and cash equivalents ....................................................................... 200
Note 3 Key accounting estimates and judgements ...................... 163
Note 32 Leasing ................................................................................................................................. 183 Note 17 Interest-bearing liabilities .............................................................................. 200
Note 4 Climate related disclosures ....................................................................... 163
Note 33 Share in the Swedish Nuclear Waste Fund ......................... 184 Note 18 Other noninterest-bearing liabilities (non-current) ........ 200
Note 5 Exchange rates .......................................................................................................... 163
Note 34 Interest-bearing provisions ......................................................................... 184 Note 19 Leasing ................................................................................................................................. 200
Note 6 Segment reporting ............................................................................................... 163
Note 35 Pension provisions ................................................................................................ 185 Note 20 Provisions .......................................................................................................................... 200
Note 7 Net sales ............................................................................................................................. 165
Note 36 Financial income and expenses .......................................................... 187 Note 21 Financial instruments by measurement category ..... 201
Note 8 Cost of purchases ................................................................................................. 165
Note 37 Specifications of equity ................................................................................. 188 Note 22 Result from participations in subsidiaries ............................. 201
Note 9 Operating external expenses ................................................................. 165
Note 38 Specifications of the cash flow statement ............................ 188 Note 23 Result from participations
Note 10 Other operating income and expenses .................................... 165
Note 39 Contingent liabilities ........................................................................................... 189 in associated companies ............................................................................. 201
Note 11 Number of employees and personnel costs ..................... 166
Note 40 Collateral ............................................................................................................................ 190 Note 24 Other financial income ..................................................................................... 201
Note 12 Income taxes ................................................................................................................ 168
Note 41 Auditors’ fees ................................................................................................................ 190 Note 25 Other financial expenses ............................................................................. 201
Note 13 Inventories ....................................................................................................................... 169
Note 42 Related party disclosures ............................................................................ 190 Note 26 Appropriations and untaxed reserves ........................................ 201
Note 14 Trade receivables and other receivables ................................. 170
Note 43 Events after the balance sheet date .............................................. 190 Note 27 Specification of the cash flow statement ............................... 202
Note 15 Prepaid expenses and accrued income ................................... 170
Note 28 Contingent liabilities ........................................................................................... 202
Note 16 Other assets ................................................................................................................. 170
Notes to the parent company accounts Note 29 Collateral ............................................................................................................................ 203
Note 17 Trade payables and other liabilities ................................................ 171
Note 1 Company information ...................................................................................... 195 Note 30 Gender distribution among senior executives ................ 203
Note 18 Accrued expenses and deferred income ............................... 171
Note 2 Proposed distribution of profits ........................................................... 195 Note 31 Auditors’ fees ................................................................................................................ 203
Note 19 Other non-interest-bearing liabilities ............................................. 171
Note 3 Accounting policies ............................................................................................. 195 Note 32 Related party disclosures ............................................................................ 203
Note 20 Margin receivables and liabilities ....................................................... 171
Note 4 Exchange rates ......................................................................................................... 195 Note 33 Events after the balance sheet date .............................................. 203
Note 21 Assets held for sale .............................................................................................. 171
Note 22 Acquired and divested operations ................................................... 172 Note 5 Net sales ............................................................................................................................ 195
Vattenfall Annual and Sustainability Report 2025 153
Financial information / Vattenfall’s financial performance
Vattenfall’s financial performance
Market development Nordic hydrology Nordic hydrological balance Electricity generation Electricity generation
The electricity market has during 2025, com- Hydrological balance is a measure of the Total electricity generation increased by
TWh EUR/TWh
pared to 2024, been characterised by higher expected amount of energy that is stored in the 2.5 TWh to 102.1 TWh (99.6) during 2025,
prices on the Continent and in the southern form of snow, water reservoirs and groundwater 20 mainly due to higher hydro power genera- 50
parts of the Nordics. On the Continent, electric- in relation to normal circumstances. Historically, tion (+2.6 TWh). Generation from nuclear
40
ity prices increased due to higher gas prices and the electricity prices in the Nordics have had 10 power also increased (+2.3 TWh) primarily 40 38 37
35
higher prices for emission allowances, which a negative correlation with the hydrological bal- as a result of higher availability at F
orsmark.
also affected electricity prices in the southern ance because the available hydropower capac- These increases were partly offset, mainly 30
parts of the Nordics as these are closely con- ity usually determines which type of energy 0 due to lower fossil-based power genera-
nected. At the same time, electricity prices is used. The electricity prices in the northern tion (–2.3 TWh) as a result of the divest- 20 17 17
were very low in the most northern price areas, parts of the Nordics are still linked to the hydro- –10 ment of the heat operations in Berlin
logical balance, while the correlation to the 9
mainly due to a strong hydrological balance. 10 7
The lower electricity prices in the north had system price and price development in the
–20 0,2 0,3
a negative impact on Vattenfall’s results. southern parts has weakened. The hydrological 0
2024 2025
Nuclear
Hydro
Wind
Fossil
Biomass,
waste
balance in the Nordics has gradually decreased
Electricity spot prices from a high level at the beginning of the year, to
a level close to normal by the end of 2025.
EUR/MWh 2025 2024 Change The filling level of Vattenfall’s reservoirs 2025
Nordics 39.7 36.1 10% amounted to 69% (82%) at the end of the year, 2024
Germany 89.3 78.5 14%
which is 11 percentage points above the normal
level.
Netherlands 86.8 77.3 12%
Nordic price area differences Spot prices per price area and system price Sales development
The electricity market in the Nordics is divided Electricity sales, excluding sales to Nord Pool 2nd of May 2024, Vattenfall sold gas exter-
EUR/MWh
into different price areas. In Sweden, there are Spot and deliveries to minority owners, nally to the company until the end of October
four price areas and Vattenfall’s hydro power 150 increased slightly to 116.5 TWh (115.9 TWh). 2025. This was previously accounted for as
assets are mainly in SE1 and SE2, while the Gas sales increased by 7.1 TWh to 65.0 TWh input in the heat- and electricity generation.
nuclear power assets are in SE3. Vattenfall also (57.9), primarily due to an increased customer Heat sales declined by 4.6 to 4.5 TWh (9.1)
has wind power assets, most of which are 100 base in Germany. The increase is also attrib- mainly due to the divestment of the heat
located in SE4. In Denmark, there are two price utable to the divestment of the heat opera- operations in Berlin.
areas, and Vattenfall has wind power assets in tions in Berlin. After the divestment on the
both areas, DK1 and DK2. The Nordic system
50
price (SYS) is a reference price for all price areas
and is calculated by the electricity exchange
Nord Pool. Vattenfall hedges a substantive
2025 2024 Change
portion of its electricity production against the 0
2023 2024 2025
Nordic system price. Thereby, price area differ- Sales of electricity to customers , TWh 116.5 115.9 1%
ences have an effect on the company’s result SE2¹ DK1 Sales of gas, TWh 65.0 57.91 12%
development. SE3 DK2 Sales of heat, TWh 4.5 9.1 –51%
The price area differences have been on a SE4 SYS
1. The value has been adjusted compared with information previously published in Vattenfall’s financial
higher level in 2025 compared with 2024. In reports.
northern Sweden, prices have decreased, while
prices in southern Sweden and in Denmark
have increased relative to SYS. For Vattenfall,
this means lower prices for the production in
the north of Sweden, SE1 and SE2, compared
with the production in the south of Sweden.
Vattenfall Annual and Sustainability Report 2025 154
Financial information / Vattenfall’s financial performance
Comments on the consolidated income statement
Amounts in SEK million 2025 2024 Items affecting comparability Taxes
Items affecting comparability for 2025 amounted to SEK –3.8 For 2025, the Group reported a tax expense of SEK 6.3 billion
Net sales 234,915 245,570 billion (21.8), mainly related to changes in fair value of energy calculated on a reported profit before tax of SEK 26.0 billion.
Operating profit before depreciation, amortisation and impairment losses (EBITDA)1 49,236 60,779 derivatives (SEK –2.8 billion), and impairment losses relating to The effective tax rate is 24,2%, the difference between the
Operating profit (EBIT)1 27,102 38,851 district heating assets within the operating segment Custom- Swedish income tax rate of 20,6% corresponds to SEK –0,9 bil-
Underlying operating profit1 30,937 17,059 ers & Solutions and wind power assets within the operating lion. The difference mainly relates to SEK –0.6 billion regarding
Profit for the year 19,700 33,380 segment Wind (SEK –1.5 billion). Refer to Defintions of key ratios difference in tax rate in foreign operations and –0.3 billion relat-
and Calculations of key ratios, for more information. ing to tax non-deductible impairments in UK and Sweden. For
1. Refer to Definitions of key ratios and Calculations of key ratios for more information about the alternative performance measure.
further information, refer to Note 12, Income taxes.
Financial items
Net sales Financial items amounted to SEK –1.1 billion (–0.9). The decrease Profit for the year
Consolidated net sales decreased by SEK 10.7 billion (including of electricity, and negative price effects in customer sales of was primarily driven by lower return from the Nuclear Waste Profit for the year amounted to SEK 19.7 billion (33.4), and the
negative currency effects of SEK 5.4 billion). The decrease is gas and electricity. This was partly offset by positive volume Fund compared with last year. impact of lower items affecting comparability was partly offset
mainly explained by the divestment of the heat operations in effects in customer sales of gas. Refer to Note 6, Segment by a higher underlying operating profit.
Berlin, a shift in the geographic composition of customer sales reporting, for net sales per segment.
Operating profit and underlying operating profit1
Operating profit (EBIT) Underlying operating profit2
Comments to the consolidated balance sheet
Amounts in SEK million 2025 2024 2025 2024 Amounts in SEK million 2025 2024
Customers & Solutions 4,089 6,751 4,885 6,581 Equity 199,394 201,921
Power Generation 14,486 16,188 17,402 1,329 – whereof attributable to owner of the parent company 172,676 171,196
Wind 5,327 5,536 6,079 5,884 Net debt1 11,728 –2,767
Distribution 3,289 2,566 3,280 2,581 Adjusted net debt1 73,442 79,014
Other –125 7,686 –745 560
1. Refer to Definitions of key ratios and Calculations of key ratios for more information about the alternative performance measure.
Eliminations 36 124 36 124
Total 27,102 38,851 30,937 17,059
1. From 1 January 2025 Vattenfall Services is included in Distribution instead of Power Generation, comparable amounts have been updated. Equity Cash and cash equivalents, short term investments
2. The key ratio has been adjusted and prior periods have been restated, see Definitions of key ratios for more information. The Group’s equity decreased by SEK 2.5 billion. The decrease and credit facilities
is primarily explained by dividends to the owner and a reduc- As of 31 Deptember 2025, cash, cash equivalents and short-
Underlying operating profit tion in other comprehensive income. term investments amounted to SEK 55.3 billion, a decrease of
The underlying operating profit increased by SEK 13.9 billion in • Lower earnings contribution from the Customers & Solutions SEK 31.8 billion compared to SEK 87.1 billion as per 31 Decem-
total in 2025 compared with last year, which is explained by: operating segment (SEK –1.7 billion) mainly due to strong com- Net debt and adjusted net debt ber 2024. Vattenfall’s credit facilities consist of a EUR 2.0 billion
petition on the German market impacting the margins and As per 31 December 2025, net debt amounted to SEK 11.7 bil- Revolving Credit Facility maturing 2028 and a EUR 1.0 billion
• Higher earnings contribution from the Power Generation oper-
customer base, as well as higher gas grid costs in Germany. lion compared to net cash of SEK 2.8 billion as per 31 Decem- facility maturing 2027. As per 31 December 2025, available
ating segment (SEK +16.1 billion) mainly due to a better result
• Lower earnings contribution from the Other operating seg- ber 2024. Adjusted net debt amounted to SEK 73.4 billion, a liquid assets, including the credit facilities amounted to 35.7%
from continental hedges in 2025, and higher cost for provi-
ment (SEK –1.3 billion) which mainly is explained by the divest- decrease of SEK 5.6 billion compared to 31 December 2024. of net sales. Vattenfall’s policy is to maintain liquidity sources
sions related to future nuclear obligations that had a negative
ment of the heating business in Berlin, which was completed The decrease is mainly explained by positive cash flow from to cover the higher of 10% of the Group’s annual turnover, or
impact on 2024.
in the second quarter of 2024. FFO (SEK 41.8 billion) partly offset by negative cash flow from 90-days’ stressed liquidity needs.
• Higher earnings contribution from the Distribution operating investments (SEK 30.4 billion) and dividend paid to the owner
segment (SEK +0.7 billion), mainly explained by higher reve- • Other items, net (SEK –0.1 billion). (SEK 7.0 billion).
nues as a result of tariff adjustments for the local grids and
lower costs for grid losses. Refer to Note 6, Segment reporting, for more information on
profit per segment. Refer to Definitions of key ratios and Calcu-
• Higher earnings contribution from the Wind operating seg-
lations of key ratios, for more information regarding underlying
ment (SEK +0.2 billion) mainly driven by higher electricity
operating profit.
prices.
Vattenfall Annual and Sustainability Report 2025 155
Financial information / Vattenfall’s financial performance
Investments
Financial targets
% 2025 2024 Amounts in SEK million 2025 2024
Adjusted FFO/adjusted net debt, % 1
53.4 41.5 Electricity generation
Return on capital employed, excl items affecting comparability, %1 10.2 5.4 Wind power and solar PV 7,715 8,852
Nuclear power 2,414 1,643
1. Refer to Definitions of key ratios and Calculations of key ratios for more information about the alternative performance measure.
Hydro power 1,699 1,263
Vattenfall’s financial targets are Adjusted FFO/adjusted net debt parability. For analysis of Vattenfall’s financial targets refer to the Gas 119 19
and Return on capital employed excluding items affecting com- section Financial targets. Biomass, waste 10 14
Total electricity generation 11,957 11,791
Total electricity networks 11,389 10,114
Comments to the consolidated statement of cash flows Combined heat and power/heat
Heat networks 1,833 1,846
Amounts in SEK million 2025 2024
Fossil-based power 338 447
Adjusted FFO1 39,224 32,819 Other 254 706
Cash flow from operating activities 23,245 61,869 Total combined heat and power/heat 2,425 2,999
Cash flow from investing activities –16,114 –17,596
Purchases of shares, shareholder contributions 1,304 598
Cash flow from financing activities –25,825 –44,063
Other 3,338 3,602
Cash flow for the year –18,694 210
Total investments 30,413 29,104
1. Refer to Definitions of key ratios and Calculations of key ratios for more information about the alternative performance measure.
Accrued investments, unpaid invoices (–)/release of accrued investments (+) 6 1,372
Cash and cash equivalents in acquired companies –9 –8
Adjusted FFO increase in working capital in the Wind segment (SEK –3.8 bil- Total investments with cash flow effect 30,410 30,468
Funds from operations (FFO) increased by SEK 6.4 billion lion). This was partly offset by decreased working capital in the
compared with last year, mainly as a result of higher operating Customers & Solutions segment (SEK +1.6 billion).
Cash flow from financing activities
profit before depreciation and amortisation (EBITDA) adjusted
Cash flow from financing activities amounted to SEK 25.8 billion (–44.1) in 2025.
for non-cash items. Cash flow from investing activities
Cash flow from investing activities in 2025 amounted to
Cash flow from operating activities SEK –16.1 billion (–17.6), of which total investments amounted to
Cash flow from changes in working capital in 2025 totalled SEK –30.4 billion (–30.5). This year’s investments are specified
SEK –18.6 billion (26.4). The main contributors were the net of below.
received and paid margin calls (SEK –13.1 billion) and an
Vattenfall Annual and Sustainability Report 2025 156
Financial information / Consolidated accounts
Consolidated income statement Consolidated statement of comprehensive income
Amounts in SEK million Note 2025 2024 Amounts in SEK million 2025 2024
Net sales 6, 7 234,915 245,570 Profit for the year 19,700 33,380
Cost of purchases 8 –145,015 –144,977
Other comprehensive income
Other external expenses 9 –17,929 –25,403
Personnel expenses 11 –24,288 –23,767 Items that may be reclassified to the income statement
Other operating income and expenses, net 10 1,187 9,261 Cash flow hedges
Share of profit from associated companies and joint ventures 25 366 95 – Changes in fair value –13,609 11,978
Operating profit before depreciation, amortisation and impairment losses (EBITDA) 6 49,236 60,779 – Transferred to the income statement 6,889 19,397
– Transferred to the balance sheet 17 29
Depreciation, amortisation and impairments 23, 24, 27 –22,134 –21,928
Hedging of net investments in foreign operations 2,530 –1,618
Operating profit (EBIT) 6 27,102 38,851
Exchange rate differences, divested companies –58 –318
Financial income 36 2,956 3,665 Exchange rate differences –8,933 5,438
Financial expenses 36 –6,086 –7,343 Income taxes related to items that may be reclassified 1,105 –4,551
Return from the Swedish Nuclear Waste Fund 33 2,011 2,786 Total items that may be reclassified to the income statement –12,059 30,355
Profit before income taxes 25,983 37,959
Items that will not be reclassified to the income statement
Income taxes 12 –6,283 –4,579 Remeasurement of defined benefit obligations 1,559 143
Profit for the year 19,700 33,380 Income taxes related to items that will not be reclassified –687 169
Total Items that will not be reclassified to the income statement 872 312
– Whereof attributable to owner of the parent company 18,614 31,793
– Whereof attributable to non-controlling interests 1,086 1,587 Total other comprehensive income, net after income taxes –11,187 30,667
Total comprehensive income for the year 8,513 64,047
Supplementary information
– Whereof attributable to owner of the parent company 8,560 61,741
Items affecting comparability1, 2 –3,835 21,792
– Whereof attributable to non-controlling interests –47 2,306
Underlying operating profit before depreciation, amortisation and impairment losses1, 2 6 51,557 37,667
Underlying operating profit1, 2 6 30,937 17,059
Adjusted profit for the period1 19,849 19,972
1. See Definitions and calculations of key ratios for the definitions of the Alternative Performance Measures.
2. The key ratio has been adjusted and prior periods have been restated, see Definitions of key ratios for more information.
Vattenfall Annual and Sustainability Report 2025 157
Financial information / Consolidated accounts
Consolidated balance sheet1
Amounts in SEK million Note 31 December 2025 31 December 2024 Amounts in SEK million Note 31 December 2025 31 December 2024
Assets Equity and liabilities
Non-current assets Equity attributable to owners of the parent company
Property, plant and equipment 23, 32 275,353 273,707 Share capital 6,585 6,585
Goodwill 24 14,848 15,655 Hedge reserve –7,745 –2,668
Other intangible assets 24 4,303 3,607 Translation reserve 13,183 18,974
Participations in associated companies and joint ventures 25 4,912 5,037 Retained earnings incl. profit for the year 160,653 148,305
Other shares and participations 199 225 Total equity attributable to owners of the parent company 37 172,676 171,196
Share in the Swedish Nuclear Waste Fund 33 58,201 55,650
Non-controlling interests 26,718 30,725
Derivative assets 30 3,898 4,711
Total equity 199,394 201,921
Deferred tax assets 12 6,100 7,318
Other assets 7, 16 3,165 2,839 Non-current liabilities
Total non-current assets 370,979 368,749 Hybrid Capital 30, 31 20,539 21,880
Other interest-bearing liabilities 30, 31, 32 33,338 46,021
Current assets
Derivative liabilities 30 6,543 6,469
Inventories 13 27,605 27,586
Interest-bearing provisions 34 122,710 127,370
Trade receivables and other receivables 14 35,791 45,047
Pension provisions 35 25,122 27,890
Prepaid expenses and accrued income 15 16,058 16,593
Deferred tax liabilities 12 13,936 14,105
Other assets 7, 16 1,899 1,116
Other non interest-bearing liabilities 7, 19 15,283 13,724
Current tax assets 12 746 1,569
Total non-current liabilities 237,471 257,459
Margin receivables 20 2,879 5,355
Derivative assets 30 5,959 7,255 Current liabilities
Short-term investments 28 37,325 50,110 Trade payables and other liabilities 17 23,995 35,571
Cash and cash equivalents 29 15,931 35,117 Other interest-bearing liabilities 30, 31, 32 13,404 16,075
Assets held for sale 21 2,841 — Derivative liabilities 30 7,958 15,479
Total current assets 147,034 189,748 Interest-bearing provisions 34 3,166 2,916
Total assets 6 518,013 558,497 Accrued expenses and deferred income 18 25,516 24,790
Other non-interest bearing liabilities 7, 19 1,696 2,808
Margin liabilities 20 360 631
Current tax liabilities 12 3,306 847
Liabilities associated with assets held for sale 21 1,747 —
Total current liabilities 81,148 99,117
Total equity and liabilities 518,013 558,497
1. For more information about reclassifications see Note 2, Accounting principles, Reclassifications in the balance sheet.
Vattenfall Annual and Sustainability Report 2025 158
Financial information / Consolidated accounts
Consolidated statement of cash flows
Amounts in SEK million Note 2025 2024 Amounts in SEK million 2025 2024
Operating activities Financing activities
Operating profit before depreciation, amortisation and impairment losses (EBITDA) 49,236 60,779 Changes in loans to owners of non-controlling interests in foreign Group companies –239 184
Tax paid –1,911 –2,777 Loans raised2 7,163 7,570
Capital gains/losses, net –615 –8,086 Repayment of debt pertaining to acquisitions of Group companies –151 –35
Interest received 2,237 2,791 Repayment of other debt2 –23,000 –49,770
Interest paid –3,383 –4,218 Divestment of shares in Group companies to owners of non-controlling interests –13 —
Other, incl. non-cash items 38 –3,717 –13,020 Dividends paid to owners –8,448 –5,391
Funds from operations (FFO)1 41,847 35,469 Contribution to non-controlling interest –1,175 –1,259
Contribution from non-controlling interest 38 4,638
Changes in inventories –907 –4,752
Cash flow from financing activities –25,825 –44,063
Changes in operating receivables –2,488 –4,945
Changes in operating liabilities –1,828 2,019 Cash flow for the year –18,694 210
Changes in margin calls –13,083 31,240
Cash and cash equivalents
Other changes –296 2,838
Cash and cash equivalents at start of year 35,117 27,682
Cash flow from changes in operating assets and operating liabilities –18,602 26,400
Cash and cash equivalents included in assets held for sale –59 6,921
Cash flow from operating activities 23,245 61,869
Cash flow for the year –18,694 210
Investing activities Translation differences –433 304
Acquisitions in Group companies 22 –1,089 –112 Cash and cash equivalents at end of year 15,931 35,117
Investments in associated companies and other shares and participations –206 –478
Investments in property, plan and equipment –27,290 –28,243
Investments in intangible assets –1,825 –1,635
Total investments –30,410 –30,468
Divestments 38 1,477 41,000
Changes in short-term investments 9,698 –28,128
Changes in interest-bearing receivables 3,121 —
Cash flow from investing activities –16,114 –17,596
Cash flow before financing activities 7,131 44,273
1. See Definitions of key ratios for definition of the Alternative Performance Measures.
2. Short-term borrowings in which the duration is three months or shorter are reported net.
Vattenfall Annual and Sustainability Report 2025 159
Financial information / Consolidated accounts
Supplementary information Reconciliation of net debt
Interest-bearing assets Interest-bearing liabilities
Amounts in SEK million 2025 2024 Other Total Other Total
Cash and interest- interest- interest- interest-
Adjusted FFO (funds from operations) cash bearing bearing Hybrid Leasing bearing bearing Total
FFO for the period 41,847 35,469 Amounts in SEK million equivalents assets assets Capital liabilities liabilities liabilities net debt
Dividends paid to owners of non-controlling interests –1,448 –1,391 Net debt as at
Contribution to owners of non-controlling interests –1,175 –1,259 1 January 2024 27,682 25,004 52,686 –20,987 –6,298 –93,825 –121,110 –68,424
Adjusted FFO1 39,224 32,819 Cashflow 209 26,272 26,481 –5 1,212 41,029 42,236 68,717
Cash flow after dividend Change in leasing
liabilities — — — — –1,803 — –1,803 –1,803
Cash flow before financing activities 7,131 44,273
Exchange rate
Change in margin calls from interest rate and currency derivatives 135 –1,672 differences 305 972 1,277 –888 –292 –3,168 –4,348 –3,071
Changes in short-term investments –9,698 28,128 Acquired/divested
Divestment of shares in Group companies to owners of non-controlling interests –13 — interest-bearing liabilities/
Dividends paid to owners –8,448 –5,391 short-term investments — — — — — –1 –1 –1
Contribution to/from owners of non-controlling interests –1,137 3,379 Assets held for sale 6,921 — 6,921 — — — — 6,921
Cash flow after dividend end of year –12,030 68,717 Other non cash items — — — — — 428 428 428
Net debt as at
Change in net debt 31 December 2024 35,117 52,248 87,365 –21,880 –7,181 –55,537 –84,598 2,767
Net debt at start of year 2,767 –68,424
Cash flow after dividends –12,030 68,717 Cashflow –18,693 –9,322 –28,015 — 1,364 14,621 15,985 –12,030
Changes as a result of valuation at fair value 37 456 Change in leasing
Change in liabilities for leasing –2,873 –1,803 liabilities — — — — –2,873 — –2,873 –2,873
Interest-bearing liabilities/short-term investments acquired/divested 190 –1 Exchange rate
Changes in liabilities pertaining to acquisitions of Group companies, discounting effects 7 –28 differences –434 –3,107 –3,541 1,341 475 1,958 3,774 233
Cash and cash equivalents included in assets held for sale –59 6,921 Acquired/divested
interest-bearing liabilities/
Translation differences on net debt 233 –3,071
short-term investments — — — — — 190 190 190
Net debt at end of year1 –11,728 2,767 Assets held for sale –59 — –59 — — — — –59
Cash flow from operating activities 23,245 61,869 Other non cash items — — — — — 44 44 44
Maintenance investments –16,853 –17,800 Net debt as at
Free cash flow1 6,392 44,069 31 December 2025 15,931 39,819 55,750 –20,539 –8,215 –38,724 –67,478 –11,728
1. See Definitions of key ratios for definition of the Alternative Performance Measures.
Vattenfall Annual and Sustainability Report 2025 160
Financial information / Consolidated accounts
Consolidated statement of changes in equity
Attributable Attributable
to non- to non-
controlling Total controlling Total
Attributable to owner of the parent company interests equity Attributable to owner of the parent company interests equity
Reserve Reserve
Share for Translation Retained Share for Translation Retained
Amounts in SEK million capital hedges reserve earnings Total Amounts in SEK million capital hedges reserve earnings Total
Balance brought forward 2025 6,585 –2,668 18,974 148,305 171,196 30,725 201,921 Balance brought forward 2024 6,585 –29,188 15,860 120,209 113,466 25,963 139,429
Profit for the year — — — 18,614 18,614 1,086 19,700 Profit for the year — — — 31,793 31,793 1,587 33,380
Cash flow hedges Cash flow hedges
– Changes in fair value — –13,609 — — –13,609 — –13,609 – Changes in fair value — 11,978 — — 11,978 — 11,978
– Transferred to the income statement — 6,889 — — 6,889 — 6,889 – Transferred to the income statement — 19,397 — — 19,397 — 19,397
– Transferred to the balance sheet — 17 — — 17 — 17 – Transferred to the balance sheet — 29 — — 29 — 29
Hedging of net investments in foreign Hedging of net investments in foreign
operations — — 2,530 — 2,530 — 2,530 operations — — –1,618 — –1,618 — –1,618
Exchange rate differences, Exchange rate differences,
divested companies — — –58 — –58 — –58 divested companies — — –318 — –318 — –318
Exchange rate differences — — –7,742 — –7,742 –1,191 –8,933 Exchange rate differences — — 4,717 — 4,717 721 5,438
Remeasurement of defined Remeasurement of defined
benefit obligations — — — 1,486 1,486 73 1,559 benefit obligations — — — 145 145 –2 143
Income taxes related to other Income taxes related to other
comprehensive income — 1,626 –521 –672 433 –15 418 comprehensive income — –4,884 333 169 –4,382 — –4,382
Total other comprehensive income Total other comprehensive income
for the year — –5,077 –5,791 814 –10,054 –1,133 –11,187 for the year — 26,520 3,114 314 29,948 719 30,667
Total comprehensive income for the year — –5,077 –5,791 19,428 8,560 –47 8,513 Total comprehensive income for the year — 26,520 3,114 32,107 61,741 2,306 64,047
Dividends paid to owners — — — –7,000 –7,000 –1,448 –8,448 Dividends paid to owners — — — –4,000 –4,000 –1,391 –5,391
Group contributions from (+)/to (–) Group contributions from (+)/to (–)
owners of non-controlling interests — — — — — 583 583 owners of non-controlling interests — — — — — –21 –21
Changes in ownership in Group compa- Changes in ownership in Group
nies on acquisition/divestments of shares companies on divestments of shares
to owners of non-controlling interests — — — –304 –3042 –1,7342 –2,038 to owners of non-controlling interests — — — — — 6111 611
Contribution to/from non-controlling Contribution to/from
interest — — — — — –1,137 –1,137 non-controlling interest — — — — — 3,379 3,379
Other changes — — — 224 224 –224 — Changes as a result of changed
Total transactions with equity holders — — — –7,080 –7,080 –3,960 –11,040 ownership — — — — — –134 –134
Balance carried forward 2025 6,585 –7,745 13,183 160,653 172,676 26,718 199,394 Other changes — — — –11 –11 12 1
Total transactions with equity holders — — — –4,011 –4,011 2,456 –1,555
Balance carried forward 2024 6,585 –2,668 18,974 148,305 171,196 30,725 201,921
See also Note 37, Specifications of equity.
1. Relates to the divestment of shares in Nordlicht.
2. Relates to the investment of shares in Nordlicht.
Vattenfall Annual and Sustainability Report 2025 161
Financial information / Consolidated notes
Note 1 Company information Note 2 Accounting policies
The consolidated accounts include the parent company Basis of preparation eneration. The change has been made because Vattenfall
G ated companies and joint ventures. For accounting principles on
Vattenfall AB and all subsidiaries. The Annual and Sustainability The consolidated financial statements include Vattenfall AB and Services mainly provides services to the operating segment subsidiaries and joint operation refer to Note 26, Shares and
Report for the financial year ending 31 December 2025 was its subsidiaries. The consolidated accounts have been prepared Distribution. The comparative figures for 2024 have been participations in subsidiaries and joint operation.
approved for issue in accordance with the decision of the in accordance with the International Financial Reporting Stand- adjusted accordingly in the segment reporting. No other
board and the CEO on 19 March 2026. ards (IFRS) issued by the International Accounting Standards changes have been made to the operating segments. Transactions that are eliminated upon consolidation
The parent company Vattenfall AB (publ) with registration Board (IASB) as endorsed by the EU, as well as the interpreta- Intra-group receivables and liabilities, income and expenses, as
number 556036-2138, is a limited company with registered tions issued by the IFRS Interpretations Committee. In addition, Reclassifications in the balance sheet well as gains or losses arising from intra-Group transactions
office in Solna, Sweden. The head office is located at Evene- recommendation RFR 1 “Supplementary Accounting Policies for The following reclassifications have been made in the balance between Group companies, are eliminated when preparing the
mangsgatan 13 in Solna. Vattenfall AB is 100% owned by Groups”, issued by the Swedish Sustainability and Financial sheet compared to Vattenfall’s Annual and Sustainability Report consolidated accounts. Gains and losses arising from transac-
the Swedish state. Vattenfall AB has listed bonds issued on Reporting Board, has been applied. RFR 1 specifies the additions 2024 in order to improve the presentation of the balance sheet: tions with associated companies and joint ventures are elimi-
Nasdaq Stockholm and the London Stock Exchange. The to the IFRS disclosure requirements that are required by the • Goodwill is presented on a separate line instead of as part of nated to an extent that corresponds to the Group’s participation
Group mainly produces, distributes and sells electricity and Swedish Annual Accounts Act. intangible assets. in the company.
heat. The business is primarily conducted in Sweden, Assets and liabilities are reported at cost or amortised cost,
• Intangible assets: current, has been reclassified to inventory. Foreign currency translation
Germany, the Netherlands, Denmark and the UK. with the exception of certain financial assets and liabilities and
inventories held for trading, which are measured at fair value. • Contract assets/liabilities is part of other assets/liabilities. The functional currency of each Group entity is determined
Operations requiring permits The accounting policies described below and in each respec- • Margin receivables/liabilities is presented on separate lines based on the economic environment in which each entity
During the year, Vattenfall Group has conducted operations tive note to the consolidated accounts have been applied con- instead of as part of advance payments paid/received and operates. The parent company’s functional currency is Swedish
subject to a permit in accordance with the legislation of the sistently for all periods presented in the consolidated financial short-term investments/other interest-bearing liabilities. kronor (SEK), which is also the presentation currency of both the
respective country where it operates. Vattenfall AB conducts statements. parent company and the Group.
• Advance payments paid/received has been reclassified to
operations that require permits in accordance with the Swedish Unless otherwise stated, amounts are in million Swedish Assets and liabilities of foreign activities, including goodwill
other assets/liabilities and margin receivables/liabilities.
Environmental Code. These consist primarily of electricity and kronor (SEK million). Rounding differences may occur. and other consolidated surplus and deficit values, are translated
heat generation plants that require permits and/or registration. to SEK at the exchange rate on the balance sheet date. Income
Comparative amounts have been adjusted accordingly.
Vattenfall’s other operations requiring permits, that make up New accounting principles effective from 2025 and expenses of foreign activities are translated to SEK using
a significant part of the business, are conducted primarily by No amended accounting standards or interpretations effective an average exchange rate. Translation differences arising from
Changes regarding key ratios
subsidiaries. from 1 January 2025 have had a material impact on the foreign currency translation of foreign activities are reported in
The following measures have been adjusted, or added since
Vattenfall Group’s financial statements. Other comprehensive income.
Vattenfall’s Annual and Sustainability Report 2024:
Transactions in foreign currencies are translated to the func-
New accounting principles effective from 2026 and later • Items affecting comparability tional currency at the exchange rate on the day of the transac-
IFRS 18, Presentation and Disclosure in Financial Statements is • Adjusted profit for the period tion. At the balance sheet date, monetary assets and liabilities
a new standard that is applicable from 1 January 2027 (early denominated in foreign currencies are translated into the
• Adjusted net debt
adoption is permitted). The new standard replaces IAS 1, Pres- f unctional currency at the closing rate. Operationally derived
entation of Financial Statements, with focus on updates to the • Adjusted FFO exchange rate differences are reported under Other operating
structure of the income statement with defined subtotals and • Adjusted FFO/Adjusted net debt income and expenses. Financially derived exchange rate differ-
required disclosures regarding management-defined perfor- ences are reported as Financial income and Financial expenses,
mance measures. Vattenfall is currently assessing the impact For information regarding the changes refer to “Definitions of key respectively.
on its financial statements and plan to apply the standard from ratios”. For the Vattenfall Group, key exchange rates applied in the
1 January 2027. Vattenfall has removed a number of key ratios from external accounts are disclosed in Note 5, Exchange rates.
No other new or amended accounting standards or interpre- reporting in order to clarify which key ratios are most important.
tations that have been published and are effective as of 2026 The change was implemented as of the third interim report in Government grants
and later are assessed to have a material impact on Vattenfall 2025. See Quarterly overview, Key ratios for the key ratios that Government grants have mainly been received in relation to
Group’s financial statements. will continue to be reported. property, plant and equipment. These grants are reported as
a reduction in the reported value of the asset; for more informa-
Important changes in the financial statements compared Principles of consolidation tion refer to Note 23, Property, plant and equipment.
with the preceding year The consolidated financial statements cover the parent com-
Changes in operating segments pany, subsidiaries, associated companies, joint ventures and
Vattenfall Services is included in the operating segment joint arrangements that are reported as a joint operation accord-
Distribution as from 1 January 2025. Vattenfall Services has ing to IFRS 11. For accounting principles on associated compa-
previously been included in the operating segment Power nies and joint ventures refer to Note 25, Participations in associ-
Vattenfall Annual and Sustainability Report 2025 162
Financial information / Consolidated notes
Note 3 Key accounting estimates and judgements Note 4 Climate related disclosures Note 6 Segment reporting
Preparation of the financial statements in accordance with IFRS assessments are then used to establish the reported values of Vattenfall is committed to working towards net zero emissions Accounting policy
requires the company’s executive management and Board of assets and liabilities that are not otherwise clearly documented in 2040 meaning at least a 90 percent reduction, compared to An operating segment is a component of the Group that engages
Directors to make estimations and assessments as well as from other sources. The final outcome may deviate from the baseline 2017, in absolute emissions across all emission scopes in business activities from which it may earn revenue and incur
assumptions that affect application of the accounting policies results of these estimations and assessments. The estimations with intermediate targets for 2030. On top of this Vattenfall has expenses and for which discrete financial information is available.
and the reported amounts of assets, liabilities, income and and assessments are revised on a regular basis. set a strategic target on absolute emissions for 2030. See sec- An operating segment’s result is reviewed regularly by “the chief
expenses. These estimations and assessments are based on tion Sustainability Statement/Environment – E1 Climate change operating decision maker”, who in Vattenfall is the Chief Executive
historic experience and other factors that seem reasonable Important estimates and judgements are described further in for more information. Officer, to assess its performance and to make decisions about
under current conditions. The results of these estimations and the following notes: The climate related targets cover all of Vattenfall’s value chain resources to be allocated to the operating segment.
and geographies. The targets are central to adhering to our envi-
ronmental policy which states our commitment to align our Segment information
Key accounting estimates and judgements Note business with the Paris Agreement. Vattenfall is organised in five Business Areas: Customers &
The actions Vattenfall needs to take to reach the targets on Solutions, Generation, Markets, Wind and Distribution. The aim
Assumptions used for the recognition and measurement 12, Income taxes emissions have been considered in the annual impairment test, of the organisational structure is to increase the Group’s busi-
of deferred tax
see Note 27, Impairments and reversed impairments for more ness and performance focus, and to capitalise on cross-border
Estimation uncertainty related to impairment testing 23, Property, plant and equipment information. synergies. The segment reporting corresponds with Vattenfall’s
24, Intangible assets
Vattenfall has issued Green Bonds for financing certain organisational structure with the addition that the operating
25, Participations in associated companies and joint ventures
26, Shares and participations in subsidiaries and joint operation investments in the Group, for more information, see section segment Power Generation consist of the Business Areas
27, Impairments and reversed impairments Green Bond investor report. Generation and Markets.
Estimates of useful life 23, Property, plant and equipment The Customers & Solutions operating segment is responsible
Consolidation method for partnerships 25, Participations in associated companies and joint ventures Climate related uncertainties in Vattenfall’s for Vattenfall’s customer relations, heat plants and gas-fired
26, Shares and participations in subsidiaries and joint operation financial statements condensing plants as well as sales of electricity, gas, heat and
Assumptions used to estimate expenses for future 34, Interest-bearing provisions Vattenfall is committed to align our business with the Paris energy services.
ommitments for nuclear power operations
c Agreement and is transforming its business towards that. Risks The Power Generation operating segment comprises the
Measurement of lease liabilities and right-of-use assets 32, Leasing in the transformation is further described in the Risk Manage- Business Areas Generation and Markets. The segment includes
Assumptions used to calculate future pension obligations 35, Pension provisions ment section and in the Sustainability Statement/Environment - Vattenfall’s hydro and nuclear power operations as well as opti-
E1 Climate change. misation and trading operations including certain large busi-
Vattenfall’s assets and liabilities at year end 2025 are pre- ness customers. The result from hedging of the Group’s net
pared based on existing accounting rules (IFRS), existing legisla- exposure in electricity and fuel is reported in this segment.
tion and considering Vattenfall’s transformation plan. Changes The Wind operating segment is responsible for development,
in any of these going forward could have an effect on Vattenfall’s construction and operation of Vattenfall’s wind farms as well as
financial statements. solar power parks and batteries.
The Business Area Distribution comprises Vattenfall’s elec-
tricity distribution operations in Sweden, Vattenfall’s service
operations business and Power-as-a-Service offering.
Note 5 Exchange rates Other consist of Group-wide Staff Functions who direct,
administrate and support the business activities and Shared
Key exchange rates applied in the accounts of the Vattenfall Service Centres that focus on transaction-related processes
Group: and are an integral part of Vattenfall’s business activities. Capital
Average rate Closing rate
gains and losses from divestment of shares is also included in
Currency 2025 2024 31 Dec 2025 31 Dec 2024
Other. The heat operations in Berlin, divested in beginning of
EUR 11.0728 11.4226 10.8215 11.4590 May 2024, was included in Other for the first four months 2024.
DKK 1.4837 1.5317 1.4489 1.5365
GBP 12.9654 13.4917 12.4014 13.8197
USD 9.8763 10.5558 9.2098 11.0299
Vattenfall Annual and Sustainability Report 2025 163
Financial information / Consolidated notes
Note 6 Segment reporting, cont.
Net sales1 Investments and assets1
External net sales Internal net sales Total net sales Investments Assets
2025 2024 2025 2024 2025 2024 2025 2024 2025 2024
Customers & Solutions 166,183 175,530 15,368 13,462 181,551 188,992 Customers & Solutions 4,061 4,336 143,270 150,532
Power Generation 45,652 41,371 105,317 121,503 150,969 162,874 Power Generation 4,436 3,253 368,581 392,933
Wind 3,825 4,174 19,060 17,411 22,885 21,585 Wind 8,944 10,686 123,886 129,529
Distribution 18,607 16,764 1,428 1,193 20,035 17,957 Distribution 11,634 10,374 81,989 73,005
Other 648 7,731 10,527 13,705 11,175 21,436 Other 9,637 7,203 294,668 333,190
Eliminations — — –151,700 –167,274 –151,700 –167,274 Eliminations –8,302 –5,384 –494,381 –520,692
Total 234,915 245,570 — — 234,915 245,570 Total 30,410 30,468 518,013 558,497
Eliminations of assets pertains mainly to Power Generation’s (Markets’) liquid assets and financial receivables from other operating segments.
Internal net sales in Power Generation pertains mainly to SEK 115,039 million (135,854) and personnel expenses SEK 6,597
Markets’ sales of electricity, fuel and CO2 emission allowances million (8,352). In Wind, the main cost drivers are depreciation
Information about geographical areas
to other segments within Vattenfall. and amortisation, SEK 8,414 million (8,686) and other external
External net sales Internal net sales Total net sales
expenses, SEK 3,573 million (3,672). In Distribution, the main cost
2025 2024 2025 2024 2025 2024
Expenses drivers are other external expenses, SEK 5,568 million (2,954)
In the segment Customers & Solutions cost of purchases is the and personnel expenses, SEK 4,914 million (1,823). In Other the Sweden 63,611 61,389 4,759 5,707 68,370 67,096
main cost driver, SEK 159,139 million (164,657) with other exter- main cost drivers are other external expenses, SEK 5,729 million Germany 103,664 114,492 92,044 111,074 195,708 225,566
nal expenses also being material, SEK 9,287 million (9,363). The (6,866) and personnel expenses, SEK 4,564 million (5,253). Netherlands 53,224 55,696 62,931 69,919 116,155 125,615
main cost drivers in Power Generation are cost of purchases Denmark 6,871 6,133 877 1,295 7,748 7,428
UK 1,216 348 6,495 7,217 7,711 7,565
Operating profit1 Other countries 6,329 7,512 956 1,315 7,285 8,827
Operating profit before Underlying operating profit Eliminations — — –168,062 –196,527 –168,062 –196,527
depreciation, amortisation and before depreciation, amortisation
impairment losses (EBITDA) and impairment losses2
Total 234,915 245,570 — — 234,915 245,570
2025 2024 2025 2024
Intangible assets, property,
Customers & Solutions 7,529 9,620 7,563 9,450 Operating profit (EBIT) Underlying operating profit2 plant and equipment
Power Generation 19,528 21,134 22,445 6,289 2025 2024 2025 2024 2025 2024
Wind 14,493 14,563 14,493 14,570 Sweden 16,211 15,957 17,152 15,410 169,780 157,648
Distribution 6,782 5,765 6,773 5,758 Germany 2,549 13,857 4,116 2,460 21,345 20,181
Other 868 9,573 247 1,476 Netherlands 4,912 505 5,531 –1,809 62,743 67,871
Eliminations 36 124 36 124 Denmark 947 622 907 629 25,384 28,386
Total 49,236 60,779 51,557 37,667 UK 2,208 7,646 2,958 2,874 13,568 17,079
Other countries 233 164 231 164 1,684 1,804
Operating profit (EBIT) Underlying operating profit2 Eliminations 42 100 42 –2,669 — —
2025 2024 2025 2024 Total 27,102 38,851 30,937 17,059 294,504 292,969
Customers & Solutions 4,089 6,751 4,885 6,581
Power Generation 14,486 16,188 17,402 1,329
Wind 5,327 5,536 6,079 5,884
Distribution 3,289 2,566 3,280 2,581
Other –125 7,686 –745 560
Eliminations 36 124 36 124 1. From 1 January 2025 Vattenfall Services is included in Distribution instead of Power Generation, comparable amounts have been adjusted.
Total 27,102 38,851 30,937 17,059 2. The key ratio has been adjusted and prior periods have been restated, see Definitions of key ratios for more information.
Vattenfall Annual and Sustainability Report 2025 164
Financial information / Consolidated notes
Note 7 Net sales Note 8 Cost of purchases Note 10 Other operating income
and expenses
Accounting policy Net sales
2025 2024
Net sales include revenue from production, distribution and 2025 2024
sales of electricity and heat, sales of gas, energy trading and Electricity commodities 59,312 72,843 2025 2024
other revenues such as service and consulting assignments Production and sales
of electricity 155,222 165,444 Electricity grid cost 24,893 27,232 Capital gains 680 9,852
and connection fees. Revenue from customers is recognised Emission allowances 1,476 1,271
Sales of gas 41,615 37,910 Realised and unrealised
when the performance obligation is satisfied. Gas purchases 39,517 42,214 exchange rate gains 271 314
Vattenfall offers customers discounts and bonuses on sales Distribution of electricity 15,381 14,019
Nuclear fuel purchases 1,898 1,577 Other 1,281 1,405
of electricity, gas and heat. Various types of discounts and Sale of service and
consulting services 7,661 6,482 Other fuel purchases 632 1,736 Total other operating income 2,232 11,571
bonuses are offered from country to country. Vattenfall recog-
Production, distribution and Unrealised fair value changes
nises discounts and bonuses when the performance obligation Capital losses 65 1,765
sales of heat and steam 6,211 12,652 of derivatives accounted for
to the customer is satisfied, which in general is when the at fair value 2,766 –9,899 Realised and unrealised
electricity, heat or gas has been delivered to the customer. Revenue from exchange rate losses 637 161
Develop-to-sell projects 21 5 Other 14,521 8,003
Various sales channels are used to sell Vattenfall’s products, Other 343 384
Total revenues from contracts Total 145,015 144,977
which gives rise to different types of costs associated with sales Total other operating expenses 1,045 2,310
with customers 226,111 236,512
activities. Costs to obtain a contract related to revenues from
contracts with customers are shown in Note 24, Intangible Other revenues 8,804 9,058
assets. The amortisation schedule depends on the contract Total 234,915 245,570
duration.
Distribution and sales of electricity, heat and gas are recog- 40 percent of net sales are Taxonomy eligible and 35 percent of Note 9 Other external expenses
nised as revenue at the time of delivery, excluding value-added net sales are Taxonomy aligned. Please refer to Vattenfall’s EU
tax and excise taxes. Depending on the system for metering of taxonomy reporting in this Annual and Sustainability Report for
more information. 2025 2024
consumption, Vattenfall invoices are either based on expected
consumption, with a reconciliation when the readout takes Purchased services 7,140 7,396
place, or in arrears based on actual consumption. Contract assets and contract liabilities Consulting expenses 3,697 4,386
Vattenfall has entered into long-term power purchase agree- Contract assets mainly consist of bonus payments made to a
IT expenses 2,606 2,754
ments which are supplied to the customers through physical customer for entering into a new contract or prolonging an exist-
Marketing and selling expenses 1,927 1,974
delivery of electricity. The performance obligation is fulfilled over ing contract. These are amortised over the contractual period,
normally within 3 years. Contract liabilities mainly consist of con- Non-capitalised lease expenses 765 776
time and the income is reported within sales from electricity at
nection fees paid by customers to connect to a network. These Expenses related to provisions –1,067 4,788
delivery. These agreements do not contain derivatives nor are
they to be treated as lease agreements. are released over the expected life of the underlying network Other 2,861 3,329
Vattenfall’s electricity transactions between Nordic electricity asset, normally within 30–35 years, and recognised as revenue. Total 17,929 25,403
generation and sales activities in the Nordic countries are trans- Contract liabilities also include various types of bonuses that cus-
actions vis-à-vis the Nordic electricity exchange. The purchases tomers earn during the year and are credited the following year.
that the sales activities make from the Nordic electricity
exchange are, at the Group level, eliminated against sales of Contract balances
generation to the Nordic electricity exchange. 2025 2024
Contract assets 337 260
Develop to sell projects – of which amortisation of
Vattenfall constructs Wind and Solar projects for the purpose of contract assets as cost during
selling them. The assets under construction are accounted for the year 239 106
as inventory and the sales proceeds are recognised as net sales Contract liabilities 15,311 13,460
in accordance with IFRS 15. Depending on the contract details, – of which release of contract
revenue is being recognised as the performance obligation is liabilities as revenue during
satisfied at a point in time or over time. the year 1,574 727
Vattenfall Annual and Sustainability Report 2025 165
Financial information / Consolidated notes
Note 11 Number of employees and personnel costs
Number of employees at 31 December, full-time equivalents Remuneration to board members of the Vattenfall Group
2025 2024
Men Women Non-binary Total Men Women Total Amounts in SEK thousands 2025 2024
Sweden 7,924 3,632 1 11,557 7,881 3,552 11,433 Board of Directors
Germany 2,388 1,064 1 3,453 2,367 1,048 3,415 Mats Granryd, Chairman of the Board 1,050 993
Netherlands 2,985 1,136 3 4,124 2,972 1,133 4,105 Fredrik Rystedt, board member 578 545
Denmark 459 172 — 631 453 178 631 Ingemar Engkvist, board member 499 463
UK 320 159 1 480 331 165 496 Per Lindberg, board member (until 28 April 2025) 174 516
Other countries 393 232 — 625 363 212 575 Carola Puusteli, board member 518 486
Total 14,469 6,395 6 20,869 14,367 6,288 20,655 Pär Ekeroth, board member1 — —
Christian Levin, board member (from 29 April 2024) 484 292
Average number of employees during the year, full-time equivalents Nina Linander, board member (from 29 April 2024) 546 352
2025 2024
Former Board Members
Men Women Non-binary Total Men Women Total
Ann Carlsson, board member (until 29 April 2024) — 160
Sweden 7,932 3,611 — 11,543 7,731 3,427 11,158 Håkan Erixon, board member (until 29 April 2024) — 167
Germany 2,418 1,068 — 3,486 2,674 1,110 3,784 Total, Board of Directors 3,849 3,974
Netherlands 2,993 1,143 — 4,136 2,931 1,108 4,039
Denmark 458 174 1 633 457 173 630
Remuneration to senior executives of the Vattenfall Group
UK 332 165 — 497 334 158 492 2025
Other countries 378 221 — 599 353 206 559 Amounts in SEK thousands Base salary Other benefits Pension costs Severance costs
Total 14,511 6,382 1 20,894 14,480 6,182 20,662 Anna Borg, President and CEO 19,253 117 5,666 —
Members of the Executive Group Management Team
Vattenfall reports non-binary from 1 January 2025.
and other Sr. Executives, totals2 70,5403 1,217 16,806 4,5114
Total CEO, Executive Group Management team
Personnel costs and other Sr. Executives 89,793 1,334 22,472 4,511
2025 2024 SEK 2025 2024
Salaries and other remuneration 17,815 17,492 Average annual salary 2024
Social security costs1 6,473 6,275 per full-time equivalent2 836,869 832,549 Amounts in SEK thousands Base salary Other benefits Pension costs Severance costs
Total 24,288 23,767 Annual salary, the company’s Anna Borg, President and CEO 18,466 107 5,447 —
highest paid full-time employee 19,253,000 18,466,000
Members of the Executive Group Management Team
1. Pension costs are specified in Note 35, Pension provisions. Renumeration ratio 23.0 22.2 and other Sr. Executives, totals2 74,413 1,214 17,927 10,9815
2. Salary and bonus (excluding pension contributions and other benefits). Total CEO, Executive Group Management team
and other Sr. Executives 92,879 1,321 23,374 10,981
1. No remuneration is paid to board member employed by the Government Offices.
2. Members of the Executive Group Management and other senior executives amount to 10 individuals (11).
3. The amount includes final settlement payments to former Head of BA Markets who left Vattenfall on 26 August 2025,
in accordance with the non-compete clause of the signed employment agreement.
4. 18 months’ severance payment to former Head of BU Nuclear Generation.
5. Christian Barthélémy left the Executive Group Management team on 9 October 2024. The amount reflects payments
during the following notice period of 6 months, as well as a 12-month severance payment.
Vattenfall Annual and Sustainability Report 2025 166
Financial information / Consolidated notes
Note 11 Number of employees and personnel costs, cont.
Board of Directors the notice period, but not longer than until the date of retire- in the event that the company serves notice shall not exceed six
The Annual General Meeting on 29 April 2025 resolved in favour ment. The amount of the severance pay shall be based on the months. In addition, severance pay equivalent to a maximum
of increased fees with 5.7 percent, entailing that the directors’ fixed salary that applied at the time the notice was served. In the of 12 months’ salary 1 is payable thereafter. In the event that the
fees for the period until the end of the next Annual General event that the CEO accepts a new employment or earns income individual in question accepts new employment or receives
Meeting shall amount to SEK 1,020 thousand for the Chairman from other business activities, the severance pay shall be income from other business activities, the severance pay shall
of the Board, and SEK 460 thousand for each of the other board reduced by an amount corresponding to the new income or be reduced by an amount corresponding to the new income or
members elected at the Annual General Meeting. In addition, it other benefit received during the period in question. Severance benefit received during the time in question. The severance pay
was resolved in favour of increased fees with 10.2 percent for pay is paid out monthly. The CEO’s terms of employment are in is paid out monthly. All senior executives have severance terms
the service on the Audit Committee, entailing a fee of SEK 130 agreement with the Swedish government’s guidelines. that are in compliance with the government’s guidelines.
thousand for the committee chair and SEK 97 thousand for the
other committee members. For service on the Remuneration Executive Group Management and other senior executives Incentive programmes
Committee, it was resolved in favour of increased fees with 5.2 Salaries and other remuneration The members of the Executive Group Management and other
percent and 3.7 percent respectively, entailing a fee of SEK 65 For other members of the Executive Group Management, a total senior executives do not receive any variable salary component.
thousand to the committee chair and SEK 48 thousand to the of 8 individuals (9), the sum of salaries, other remuneration and
other committee members. No remuneration is paid to board severance pay for 2025, including the value of company cars Variable remuneration programmes
members who are employed by the Swedish Government and other benefits, was SEK 67,015 thousand (75,456). For other Vattenfall offers variable performance-based remuneration pro-
Offices or to employee representatives. The remuneration paid persons defined as senior executives by Vattenfall, who are not grammes to certain categories of employees in order to attract,
to each individual board member are shown in the table above. members of the Executive Group Management, a total of 2 indi- retain and motivate.
The board members’ respective committee assignments are viduals (2), the sum of salaries and other remuneration for 2025,
Amounts in SEK thousands Payment 2025 Payment 2024
described in the Corporate Governance section. including the value of company cars and other benefits, was
SEK 9,253 thousand (11,149). Type of programme
President and Chief Executive Officer Profit-sharing 378,028 105,740
Anna Borg, President and CEO, has in 2025 received a salary Retirement benefits Short-term incentive programmes 390,850 262,248
of SEK 19,253 thousand (18,466). The value of other benefits in Kerstin Ahlfont, Helene Biström, Catrin Jung, Jonas Bengtsson,
Long-term incentive programmes 136,058 134,909
2025 amounted to SEK 117 thousand (107) pertaining to a car Sjur Jensen, Åsa Jamal, Andreas Regnell, Torbjörn Wahlborg,
benefit and health insurance. The pension is a defined contribu- Johan Dasht, Annika Viklund and Björn Linde all have defined
tion solution and the premium paid in 2025 amounted to SEK contribution pension solutions. Martijn Hagens and Alexander Gender distribution among senior executives
van Ofwegen have a pension solution under collective agree- Women % Men %
5,666 thousand (5,447).
ments in the Netherlands. All pensions for these executives are 2025 2024 2025 2024
The President and CEO of Vattenfall AB does not receive any
variable salary component. in compliance with the Swedish government’s guidelines. Board members 27 21 73 79
The retirement age for Vattenfall’s CEO is 65 years. The CEO’s Senior executives 45 46 55 54
term of employment is until further notice, with a mutual notice Terms of notice on the part of the company
According to Vattenfall’s guidelines, which are based on the 1. Contracts entered into before the Annual General Meeting on
period of six months. In the event Vattenfall serves notice, the
government’s guidelines, the notice period for a senior executive 27 April 2017 include severance payment corresponding to
CEO is entitled to a maximum of 12 months’ severance pay after a maximum of 18 months.
Vattenfall Annual and Sustainability Report 2025 167
Financial information / Consolidated notes
Note 12 Income taxes
Accounting policy Key accounting estimates and judgements The difference between the nominal Swedish tax rate and the effective tax rate
Income taxes comprise of current tax and deferred tax. Income Assumptions used for the recognition and measurement 2025 2024
tax is reported in the income statement except when the under- of deferred tax % MSEK % MSEK
lying transaction is reported in Other comprehensive income or Vattenfall reports deferred tax assets and liabilities that are
Profit before tax 25,983 37,959
in Equity, whereby also the associated tax effect is reported in expected to be realised in future periods. In calculating these
Swedish income tax rate at 31 December 20.6 –5,352 20.6 –7,820
Other comprehensive income and Equity, respectively. deferred taxes, certain assumptions and estimations must be
Current tax is tax to be paid or received for the current year, made, mainly regarding future taxable earnings. The valuation of Difference in tax rate in foreign operations 2.4 –630 5.0 –1,881
with the application of the tax rates that are established or, estab- temporary differences and loss carryforwards is based on man- Tax adjustments for previous periods 0.9 –243 0.1 –29
lished in practice as of the balance sheet date. Adjustments of tax agement’s estimates of future taxable income and are primarily Utlisation of previously not recognised losses –0.1 24 0.0 2
paid attributable to previous periods are also included. based on business plans for the Group’s estimated outcome Revaluation of previously non-valued losses and other temporary differences –0.1 29 –7.3 2,759
Deferred tax is calculated in accordance with the balance regarding future taxable profits. Tax-loss carryforwards from current year that are not valued 0.2 –53 0.0 –5
sheet method on the basis of temporary differences between At each balance sheet date, the company uses judgment in Capital gains –0.2 62 –6.0 2,271
the reported and taxable values of assets and liabilities. The val- assessing the recoverability of deferred tax assets. If circum- Participations in the results of associated companies –0.5 126 –0.1 63
uation of deferred tax is based on how the reported value of stances indicate that sufficient future taxable profit will not be Non-deductible impairment losses 1.2 –319 0.1 –52
assets or liabilities is expected to be realised or settled. Deferred available against which the temporary difference can be utilised,
Changed tax rates 0.7 –186 0.0 —
tax is calculated in accordance with the tax rates and tax rules a reduction is made to the carrying amount of the deferred tax
Non-deductible interest 0.1 –33 0.1 –29
that have been established or have been established in practice asset.
Other non-deductible expenses 0.2 –58 0.5 –199
by the balance sheet date.
Deferred tax assets and liabilities are reported net when there Other non-taxable income –1.2 350 –0.9 341
Breakdown of income tax
is a legal right of set-off for current tax assets and tax liabilities Effective tax rate 24.2 –6,283 12.1 –4,579
2025 2024
and when the deferred tax assets and tax liabilities relate to
taxes levied by the same tax authority where there is an inten- Current tax expense (–)/ tax income (+)
tion to settle the balances through net payments. Current tax for the period: The effective tax rate is 24.2 percent, the difference between Balance sheet reconciliation of current tax
Deferred tax assets concerning deductible temporary differ- Sweden –1,537 –1,472 the Swedish income tax rate of 20.6 percent corresponds to 2025 2024
ences and tax-loss carry forwards are only reported to the Germany –983 –1,085 SEK –0.9 billion. The difference mainly relates to SEK –0.6 billion
Balance brought forward net asset
extent that it is probable that they will be used. The value of Netherlands –667 –2 regarding difference in tax rate in foreign operations and –0.3 (+)/ net liability (–) 722 483
deferred tax assets is reduced when it is no longer considered UK –953 –908 billion relating to tax non-deductible impairments in UK and
Translation differences, acquisitions,
probable that they can be used. Other countries –35 –36 Sweden. disposals and assets held for sale –122 645
The difference between the Swedish income tax rate and
Change through the
OECDs model rules on Global Minimum Tax (Pillar II) Adjustments for the effective tax rate 2024 was mainly due to recognition of income statement –4,404 –3,562
The Group has applied the temporary exception issued by the current tax of prior periods: deferred tax assets relating to the German operations, tax Tax effect through equity –667 379
IASB in May 2023 from the accounting requirements for deferred Sweden –45 –40 exempt capital gain of the Norfolk divestment and divestment
Taxes paid, net 1,911 2,777
taxes in IAS 12. Accordingly, the Group neither recognizes nor Germany –202 52 of 49 percent of the shares in Nordlicht I and II.
Balance carried forward
discloses information about deferred tax assets and liabilities Netherlands — –17
net asset (+)/ net liability (–) –2,560 722
related to the EU tax legislation on Global Minimum Tax (Pillar II). Denmark –52 –69
Vattenfall is subject to the OECD’s model rules on Global Other countries 70 15
Minimum Tax (Pillar II), effective from 1 January 2024. Under the The decrease in taxes paid compared to 2024 is mainly
Total current tax –4,404 –3,562 explained by lower preliminary tax payments during 2025 and
legislation, the parent company in Sweden will be required to
pay top-up tax on profits of its subsidiaries that are taxed at an by tax refund in Sweden and Netherlands relating to previous
Deferred tax expense (–)/ tax income (+) years.
effective tax rate of less than 15 percent. The Pillar II rules have
Sweden –1,709 –1,481
not resulted in any additional tax for Vattenfall in 2025.
Germany 219 106
Netherlands –373 117
UK 130 217
Other countries –146 24
Total deferred tax –1,879 –1,017
Total income tax –6,283 –4,579
Vattenfall Annual and Sustainability Report 2025 168
Financial information / Consolidated notes
Note 12 Income taxes, cont. Note 13 Inventories
Breakdown of deferred tax Accounting policy Inventories
2025 Inventories held for own use 2025 2024
Changes Acquisitions, Inventories held for own use are valued at the lower of their cost
Balance Changes via Other disposals Balance Inventories held for own use
and net realisable value. Net realisable value is the estimated
brought via Income comprehensive and assets Translation Reclassi carried Nuclear fuel 9,931 8,394
forward statement income held for sale differences fication forward selling price in the ordinary course of business less the esti-
mated costs of completion and the estimated costs necessary Materials and spare parts 4,476 4,281
Non-current assets –31,421 –1,770 — 182 178 –109 –32,940 to make the sale. The consumption of nuclear fuel is calculated CO2 emission allowances/certificates 3,095 2,512
Current assets –6,603 2,746 — — 237 –160 –3,780 as a depletion of the energy content of the fuel rods, and is Renewable fuel 412 491
Provisions 21,666 –284 –687 — –219 6 20,482 based on the cost of each batch of fuel loaded into the core. Fossil fuel 153 67
Other non-current liabilities 2,233 28 — — –78 75 2,258 The cost of inventories is calculated, depending on the type of Other 687 568
Current liabilities 6,084 –1,921 — –1 –218 188 4,132 inventory, either through application of the first-in, first-out (FIFO) Assets held for sale –11 —
Cash flow hedges –531 — 1,626 — –28 — 1,067 method or through the application of a method based on aver- Total 18,743 16,313
Tax losses carried forward 1,785 –678 — –81 –81 — 945 age prices. Both methods include costs that arose on acquisi-
tion of the inventory assets.
Total –6,787 –1,879 939 100 –209 — –7,836 Inventories held for trading
Fossil fuel 1,098 3,486
CO2 emission allowances held for own use
2024 CO2 emission allowances/certificates 2,212 2,462
Vattenfall applies the “net debt/carrying value” method, which
Changes Acquisitions, means that CO2 emission allowances received as grants are rec- Biomass 89 61
Balance Changes via Other disposals Balance
ognised at their nominal amount (in most cases zero), while pur- Total 3,399 6,009
brought via Income comprehensive and assets Translation Reclassi carried
forward statement income held for sale differences fication forward chased emission allowances are recognised at cost less accu-
mulated impairment losses. When carbon dioxide is emitted, an Develop to sell projects
Non-current assets –34,091 2,415 — — –254 509 –31,421
obligation arises to deliver emission allowances (EUA, CER, ERU) Wind power 2,127 2,358
Current assets –10,250 4,560 — 1 –291 –623 –6,603
to the relevant national authority. This obligation is recognised Solar power 3,336 2,906
Provisions 21,025 321 168 1 129 22 21,666
as a Cost of purchases and as a liability measured at the Total 5,463 5,264
Other non-current liabilities 2,268 –120 — — 41 44 2,233 amount at which it is expected to be settled. Total inventories 27,605 27,586
Current liabilities 14,522 –8,773 — –112 399 48 6,084
Cash flow hedges 4,251 — –4,895 — 113 — –531 Inventories held for trading
Tax losses carried forward 1,164 580 — — 41 — 1,785 Inventories held for trading are valued at fair value less costs to Inventories recognised as an expense in 2025 amount to
sell. For CO2 emission allowances/certificates that are held for SEK 2,934 million (4,899). Impairment losses of develop-to-
Total –1,111 –1,017 –4,727 –110 178 — –6,787
trading, fair value is based on quoted prices (level 1), for other sell projects amounted to SEK 493 million (336) during the
commodities the fair value measurement is derived from an year, and impairment of inventory held for own use amounted
Accumulated tax loss carryforward The tax loss carryforward fall due as follows: observable market price (level 2) of the fair value hierarchy. to SEK 37 million (0). Reversed impairments amounted to
2025 2024 2025 SEK 14 million (87).
Develop to sell projects
Sweden 151 146 2026 —
Inventories related to develop-to-sell projects pertaining to oper-
Germany 8,007 8,538 2027–2030 230
ations within Business Area Wind where Vattenfall constructs
Netherlands 5,760 8,868 2031 and beyond 9 and builds wind and solar parks with the purpose of selling the
Other countries 527 632 No time limit 14,206 fully operational parks to external parties. These inventories are
Total 14,445 18,184 Total 14,445 valued at the lower of cost and net realisable value. Cost
includes expenses for land acquisition and design as well as
The tax loss carryforwards correspond to a potential deferred expenses for construction.
tax asset of SEK 2,846 million (3,752), of which SEK 945 million
(1,785) is recorded on the balance sheet as of 31 December The value of the energy stored in the form of water in reservoirs
2025. Tax loss carryforward not included in the computation of is not reported as an asset.
deferred tax represent a tax value of SEK 1,901 million (1,967)
and mainly relate to tax loss carryforward in German operations.
These have not been assigned any value as it is currently uncer-
tain whether it will be possible to use them.
Vattenfall Annual and Sustainability Report 2025 169
Financial information / Consolidated notes
Note 14 Trade receivables and other receivables Note 15 Prepaid expenses
and accrued income
Accounting policy on experience from historic loss levels for similar receivables
Refer to Note 30, Financial instruments for trade receivables while taking into account forward-looking macroeconomic con-
accounting policy. ditions that may affect expected cash flows. For individual, signif- 2025 2024
icant receivables, an individual assessment is made. Impairment Accrued income, energy 8,250 8,238
Credit risk and loss allowance of accounts receivable is reported within Prepaid expenses, other 5,503 5,460
From its sales to customers, Vattenfall is exposed to credit risk in Cost of purchases. Standard payment terms are 14–30 days
Accrued income, other 2,305 2,895
outstanding trade receivables. This risk is relatively low as com- in the Group.
Total 16,058 16,593
panies in the Group have trade receivables distributed among a
large number of customers with a short expected maturity. Trade Trade receivables and other receivables
receivables are measured, without discounting, at the amounts 2025 2024
initially invoiced less allowances for expected losses. Historically,
overall customer losses have been low throughout the Group.
Accounts receivable – trade 28,293 33,059 Note 16 Other assets
Receivables from associated
A collective method is used where the receivables are grouped
companies 427 3,661
together based on e.g., the number of days past due. A credit
Other receivables 7,071 8,327 2025 2024
loss percentage is calculated for the respective intervals based
Total 35,791 45,047 Current Non-current Total Current Non-current Total
Contract assets 302 35 337 239 21 260
Age analysis accounts receivable – trade Advance payments paid 1,597 798 2,395 877 112 989
2025 2024 Receivables associated companies
Accounts Loss Accounts Accounts Loss Accounts and joint ventures — 654 654 — 950 950
receivable, gross allowance receivable, net receivable, gross allowance receivable, net
Interest-bearing receivables — 886 886 — 1,033 1,033
Current 25,595 –223 25,372 29,862 –342 29,520 Non-interest-bearing receivables — 792 792 — 723 723
Past due 1–30 days 2,039 –138 1,901 1,805 –14 1,791 Total 1,899 3,165 5,064 1,116 2,839 3,955
Past due 31–90 days 498 –148 350 1,079 –260 819
Past due >90 days 1,746 –1,076 670 2,188 –1,259 929 For more information regarding contract assets, see Note 7, Net sales.
Total 29,878 –1,585 28,293 34,934 –1,875 33,059
Loss allowance accounts receivable – trade
2025 2024
Balance brought forward 1,875 2,069
Provision for loss allowance 309 822
Receivables written off –372 –594
Unused amounts reversed –130 –472
Other –97 50
Balance carried forward 1,585 1,875
Vattenfall Annual and Sustainability Report 2025 170
Financial information / Consolidated notes
Note 17 Trade payables and other liabilities Note 18 Accrued expenses Note 20 Margin receivables and liabilities Note 21 Assets held for sale
and deferred income
Accounting policy Accounting policy Accounting policy
Refer to Note 30, Financial instruments for accounting principles. To fulfil the collateral requirements in the derivatives' market, Non-current assets (or disposal groups) are classified as held for
2025 2024 Vattenfall has provided collateral to its counterparties for the sale if their carrying amount will be recovered principally through
Supplier finance arrangements negative market values of derivative positions (margin receiva- a sale transaction rather than through continuing use. To be clas-
Vattenfall has established a supplier finance arrangement with Accrued expenses, energy 5,927 5,948 bles). The counterparties are obligated to repay this collateral to sified as held for sale a number of criteria must be met. Assets
external finance providers that is offered to some of the Group's Accrued personnel-related costs 2,992 3,293 Vattenfall if the negative market values decrease. Similarly, held for sale are valued at the lower of their carrying amount and
larger suppliers. The participating suppliers can choose to Accrued expenses, CO2 emission Vattenfall’s counterparties have provided collateral to Vattenfall fair value less costs to sell and are not subject to amortisation or
receive earlier payments from the finance providers for a fee allowances 3,019 2,422 (margin liabilities). depreciation.
that the finance providers keep. The arrangement also enables Accrued nuclear power-related fees
Vattenfall to extend its payment terms up to 120 days from the and taxes 479 415 Margin receivables Assets held for sale 2025
standard payment terms of 60 days at no additional cost. The Accrued interest expense 1,052 1,131 2025 2024 Some assets related to the operating segment Customers &
supplier finance arrangement is an integrated part of the com- Other accrued expenses 9,343 9,028 Solutions have been classified as assets held for sale since it is
Commodity derivatives 849 3,461
mercial relationships with suppliers and the liabilities are part of Deferred income, energy 1,592 1,629 highly probable that these assets will be recovered principally
Interest rate and currency
the working capital in Vattenfall’s normal operating cycle. The Other deferred income 1,112 924 through a divestment rather than through continuing use. The
derivatives 2,030 1,894
Group provides no collateral or guarantees to the finance pro- Total 25,516 24,790 assets are available for immediate sale in their present condi-
Total 2,879 5,355
vider. Vattenfall assessment is that the liabilities that are part of tion. The divestments are expected to be finalised during the
the supply financing arrangement are closely related to operat- first six months 2026.
ing purchase activities and that the arrangement does not lead Margin liabilities
to any significant change in the nature or function of the liabili- 2025 2024 Assets held for sale
ties. The liabilities that are part of the supplier finance arrange-
Note 19 Other non interest-bearing 2025 2024
Commodity derivatives 163 8
ment are therefore included in Trade and other payables in the liabilities
Interest rate and currency Intangible assets 166 —
consolidated balance sheet as part of accounts payable. derivatives 197 623
2025 Property, plant and equipment 1,082 —
The arrangement has a multi-bank set up with five banks Total 360 631
involved which limits the liquidity risk. As at 31 December 2025, Other non-current assets 64 —
Current Non-current Total
the bank with the largest balance represents 93% (53) due to Trade receivables and
large invoices from a single supplier. Normally volumes are more Contract liabilities 1,586 13,725 15,311 other receivables 1,459 —
evenly distributed across the banks. Advance payments Cash and cash equivalents 59 —
received 110 5 115 Other current assets 11 —
Trade payables and other liabilities Deferred income — 1,392 1,392 Total assets 2,841 —
2025 2024 Other non interest-
Interest-bearing provisions 15 —
bearing liabilities — 161 161
Accounts payable – trade 13,043 20,324 Other non-current liabilities 359 —
Total 1,696 15,283 16,979
Liabilities to associated companies 379 2,361 Deferred tax liabilities 93 —
Other liabilities 10,573 12,886 Trade payables and other liabilities 1,280 —
2024
Total 23,995 35,571 Total liabilities 1,747 —
Accounts payable that are part Current Non-current Total
of supplier finance arrangements 1,152 191 Contract liabilities 1,574 11,886 13,460
Of which suppliers have received Advance payments
payment from the finance provider 1,148 190 received 1,234 9 1,243
Deferred income — 1,532 1,532
Other non interest-
bearing liabilities — 297 297
Total 2,808 13,724 16,532
For more information on contract liabilities, refer to Note 7, Net
sales. Advance payments received refer to advance payments
from customers for larger projects. For current deferred income
refer to Note 18, Accrued expenses and deferred income.
Vattenfall Annual and Sustainability Report 2025 171
Financial information / Consolidated notes
Note 22 Acquired and divested operations Note 23 Property, plant and equipment
Acquired and repurchased operations 2025 Divested operations 2025 Accounting policy Estimated useful life
Nordlicht I and II Rostock Property, plant and equipment are reported at cost less accu- Hydro power installations 5–50 years
On 25 March 2025, Vattenfall repurchased the 49% of the On 1 October 2025, Vattenfall finalised the divestment of the mulated depreciation and any impairment losses. Property, Nuclear power installations 3–60 years
shares in Nordlicht I and II, that BASF purchased in 2024. The waste to energy plant in Rostock, Germany. The purchase price plant and equipment are reported as assets if it is probable that Combined heat and power installations 5–50 years
transaction has been recognised within equity as Vattenfall fully for the shares amounted to SEK 483 million and the capital gain future economic benefits associated with the item will flow to
Wind power installations 10–25 years
consolidated Nordlicht I and II before the purchase of shares. was SEK 373 million. the company and the cost of the asset can be measured relia-
Solar power installations 5–25 years
The consideration amounted to EUR 181 million, out of which bly. Cost includes the purchase price and costs directly attribut-
Distribution assets 10–35 years
EUR 80 million has been transferred in cash and the remaining Other able to bringing the asset to the location and condition neces-
amount consists of a written option to enter into a power pur- In addition to the above, a few smaller operations were divested sary for it to be capable of operating as intended. Borrowing Office and warehouse buildings and workshops 15–100 years
chase agreement. Refer to Note 30, Financial instruments, for during the year, generating total capital gains of SEK 139 million. costs directly attributable to significant investment projects in Office equipment 3–10 years
further information regarding the option. The cash flow from the property, plant and equipment, which take a substantial period
repurchase of the shares has, in accordance with the previous Financial information divested operations of time to complete, are included in the cost of the asset during Estimated useful lives are unchanged compared to last year.
year’s divestment of the same shares, been classified within Amounts in SEK million 2025 the construction period. The cost also includes the present
investing activities in the cash flow statement. Vattenfall owns value of the estimated cost of dismantling and removing the Key accounting estimates and judgements
100% of the shares in Nordlicht I and II after the repurchase. Assets assets and restoring the site on which it is located when there Estimation uncertainty related to impairment testing
Total non-current assets 657 is a contractual obligation. The corresponding cost is initially Property, plant and equipment are tested for impairment in
Other Total current assets 196 recognised as a provision, refer to Note 34, Interest-bearing accordance with the accounting policies described in Note 27,
In addition to the above, a few smaller operations were acquired Total assets 853 provisions. Impairments and reversed impairments.
during the year.
Liabilities
Subsequent costs Estimates of useful life
Financial information acquired and repurchased operations Total non-current liabilities 298 Subsequent costs are recognised as an asset only if it is proba- The useful life is based on historical experience and assess-
Total current liabilities 204 ble that future economic benefits associated with the asset will ments based on the best information available, and may there-
Amounts in SEK million 2025
Total liabilities 502 flow to Vattenfall and the cost can be measured reliably. Other fore deviate from the actual useful life.
Assets Total net assets 351 subsequent costs are expensed as incurred. A subsequent cost
Total non-current assets 151 is capitalised if it relates to a new component or replacement of
Total current assets 18 Sales price 863 identified components, or parts of them. Any undepreciated
Total assets 169 Capital gain (+) / loss (–) recognised in the income c arrying amounts of replaced components, or parts of compo-
statement 512 nents, are retired and expensed in connection with the replace-
Liabilities
ment. Repair and maintenance costs are expensed as incurred.
Total non-current liabilities 4
Total current liabilities 7 Depreciation principles
Total liabilities 11 Depreciation is reported on a straight-line basis in the income
Total net assets 158 statement over the estimated useful life of the asset. The Group
applies component depreciation, which means that the compo-
Acquisition of non-controlling interest 2,0171 nents’ estimated useful life provides the basis for the straight-
Goodwill 54 line depreciation. Assessments of the residual value and useful
Liability to owners of non-controlling interest –1,1181 life of an asset are conducted annually. Land and water rights
are not subject to depreciation.
Total purchase price consideration paid 1,111
1. Refers to repurchase of Nordlicht I and II.
Vattenfall Annual and Sustainability Report 2025 172
Financial information / Consolidated notes
Note 23 Property, plant and equipment, cont.
Property, plant and equipment 2025 Property, plant and equipment 2024
Plant and machinery Equipment, Plant and machinery Equipment,
Land and and other technical tools, fixtures Construction in Land and and other technical tools, fixtures Construction in
buildings1 installations and fittings progress2 Total buildings1 installations and fittings progress2 Total
Cost Cost
Cost brought forward3 54,838 474,719 10,768 28,186 568,511 Cost brought forward3 52,970 437,670 10,055 35,095 535,790
Acquired companies — — 6 150 156 Acquired companies — — 31 21 52
Investments4 743 3 874 27,266 28,886 Investments4 699 1,226 960 25,359 28,244
Advance payments capitalised — — — 25 25 Advance payments capitalised — — — 95 95
Capitalised/reversed future expenses Change in control — — — 310 310
for dismantling and restoration — 2,445 — — 2,445 Capitalised/reversed future expenses
Transfer from construction in progress 1,845 12,864 355 –15,090 –26 for dismantling and restoration –3 –501 — 5 –499
Divestments/disposals –210 –2,420 –679 –208 –3,517 Transfer from construction in progress 1,212 29,589 247 –31,048 —
Other reclassifications 818 15 213 –226 820 Divestments/disposals –724 –1,159 –904 –265 –3,052
Assets held for sale –29 –4,324 –93 –481 –4,927 Other reclassifications 48 16 188 –145 107
Divested companies –88 –1,114 –15 –158 –1,375 Assets held for sale –6 –87 –6 –1,940 –2,039
Translation differences –1,181 –13,909 –353 –663 –16,106 Divested companies –43 — — — –43
Accumulated cost carried forward 56,736 468,279 11,076 38,801 574,892 Translation differences 685 7,965 197 699 9,546
Accumulated cost carried forward 54,838 474,719 10,768 28,186 568,511
Depreciation according to plan
Depreciation brought forward –21,901 –227,991 –7,449 — –257,341 Depreciation according to plan
Acquired companies — — –4 — –4 Depreciation brought forward –20,914 –208,697 –7,084 — –236,695
Depreciation for the year –1,571 –16,643 –1,215 — –19,429 Acquired companies — — –7 — –7
Divestments/disposals 164 2,284 642 — 3,090 Depreciation for the year –1,481 –16,245 –1,072 — –18,798
Other reclassifications –64 –5 1 — –68 Divestments/disposals 732 924 858 — 2,514
Assets held for sale 1 3,044 5 — 3,050 Other reclassifications 3 –3 3 — 3
Divested companies 42 575 12 — 629 Assets held for sale — — –5 — –5
Translation differences 462 6,921 258 — 7,641 Divested companies 5 — — — 5
Accumulated depreciation according Translation differences –246 –3,970 –142 — –4,358
to plan carried forward –22,867 –231,815 –7,750 — –262,432 Accumulated depreciation according
to plan carried forward –21,901 –227,991 –7,449 — –257,341
Impairment losses
Impairment losses brought forward –3,880 –32,338 –144 –1,153 –37,515 Impairment losses
Impairment losses for the year –47 –458 — –969 –1,474 Impairment losses brought forward –3,810 –31,800 –141 –436 –36,187
Divestments/disposals 16 25 11 — 52 Impairment losses for the year –7 –1,024 — –702 –1,733
Other reclassifications — — — –30 –30 Reversed impairment losses for the year — 15 — — 15
Assets held for sale 11 404 — 346 761 Divestments/disposals — 48 — — 48
Divested companies — 130 — — 130 Assets held for sale — 971 — — 971
Translation differences 176 945 6 43 1,170 Divested companies 38 — — — 38
Accumulated impairment losses carried forward –3,724 –31,292 –127 –1,763 –36,906 Translation differences –101 –548 –3 –15 –667
Accumulated impairment losses carried forward –3,880 –32,338 –144 –1,153 –37,515
Balance carried forward 30,145 205,172 3,199 37,038 275,554
Advance payments to suppliers –201 Balance carried forward 29,057 214,390 3,175 27,033 273,655
Total 275,353 Advance payments to suppliers 52
Total 273,707
1. Cost for land and buildings includes cost of land and water rights amounting to SEK 10,430 million (10,381), which are not subject to depreciation.
2. During the year, borrowing costs incurred during the construction period have been capitalised at SEK 0 million (0). The average interest rate for 2025
was 3.58% for borrowings in SEK, 2.65% for borrowings in EUR and 6.53% for borrowings in GBP.
3. Government grants received, balance brought forward, amount to SEK 8,770 million (8,343).
4. Government grants received during the year amount to SEK 899 million (734).
Vattenfall Annual and Sustainability Report 2025 173
Financial information / Consolidated notes
Note 23 Property, plant and equipment, cont. Note 24 Intangible assets
At 31 December 2025, contractual commitments for the acquisi- Accounting policy Intangible assets 2025
tion of property, plant and equipment amount to SEK 34,918 million Goodwill Total goodwill
(8,389) and relates mainly to wind power assets. Goodwill is measured at cost less any accumulated impairment Development Concessions and Costs to obtain Renting rights and other
Goodwill costs similar rights a contract and similar rights intangible assets
Property, plant and equipment include right-of-use assets, for losses. Goodwill is not subject to amortisation but is tested at
more information regarding right-of-use assets, refer to Note 32, least annually for impairment. Goodwill that arises on acquisition Cost
Leasing. of associated companies or joint ventures is included in the Cost brought forward 42,541 3,234 17,790 2,563 115 66,243
90% of the investments during the year in property, plant and c arrying amount of Participations in associated companies and Investments 54 677 588 560 1 1,880
equipment are Taxonomy aligned. The majority of these relate to joint ventures. Transfer from development projects
investments in distribution networks, wind power, nuclear power in progress — 21 2 — 3 26
and hydropower. Please refer to Vattenfall’s EU taxonomy reporting Other intangible non-current assets Divestments/disposals — — –71 –765 –2 –838
in this Annual and Sustainability Report for more information. Other intangible assets such as concessions, patents, licences, Reclassifications — — 49 — –12 37
trademarks and similar rights as well as renting rights, and simi-
Assets held for sale — — –50 –324 — –374
lar rights are reported at cost less accumulated amortisation
Divested companies — — –2 — — –2
and impairment losses. Development costs relate to develop-
Translation differences –2,393 –33 –989 –115 –2 –3,532
ment of business-related IT-systems. Amortisation is reported
on a straight-line basis over the estimated useful life of the Accumulated cost carried forward 40,202 3,899 17,317 1,919 103 63,440
asset. Amortisation according to plan
Amortisation brought forward — –1,786 –14,689 –1,801 –37 –18,313
Estimated useful life Amortisation for the year — –166 –390 –624 –1 –1,181
Development costs 3–4 years Divestments/disposals — — 50 765 2 817
Concessions and similar rights 3–30 years Reclassifications — — –23 — 4 –19
Costs to obtain a contract 1–6 years Assets held for sale — — 22 182 — 204
Renting rights and similar rights 3–50 years Divested companies — — 2 — — 2
Estimated useful lives are unchanged compared to last year. Translation differences — 31 792 79 2 904
Accumulated amortisation according
Key accounting estimates and judgements to plan carried forward — –1,921 –14,236 –1,399 –30 –17,586
Assumptions related to impairment testing Impairment losses
Intangible assets are tested for impairment in accordance with Impairment losses brought forward –26,885 –212 –1,502 — –69 –28,668
the principles described in Note 27, Impairments and reversed
Divestments/disposals — — 20 — — 20
impairments.
Translation differences 1,531 — 112 — — 1,643
Accumulated impairment losses
carried forward –25,354 –212 –1,370 — –69 –27,005
Balance carried forward 14,848 1,766 1,711 520 4 18,849
Advance payments to suppliers 302
Total 19,151
Vattenfall Annual and Sustainability Report 2025 174
Financial information / Consolidated notes
Note 24 Intangible assets, cont. Note 25 Participations in associated companies and joint ventures
Intangible assets 2024 Accounting policy Estimation uncertainty related to impairment testing
Total goodwill Associated companies When participations in associated companies and joint ventures
Costs and other Associated companies are companies in which the Group has a are tested for impairment, assumptions need to be made regard-
Development Concessions and to obtain a Renting rights and intangible
Goodwill costs similar rights contract similar rights assets significant influence over their operational and financial manage- ing for example future cash flows. For more information regarding
ment, usually through shareholdings corresponding to between accounting principles and assumptions refer to Note 27, Impair-
Cost 20% and 50% of the votes. From the point at which the signifi- ments and reversed impairments.
Cost brought forward 41,118 2,684 17,098 2,127 114 63,141 cant influence is acquired, participations in associated compa-
Acquired companies — — 1 — — 1 nies are reported in the consolidated accounts in accordance Participations in associated companies and joint ventures
Investments 58 592 283 760 — 1,693 with the equity method.
2025 2024
Divestments/disposals –9 –51 –29 –522 — –611
Reclassifications — 6 –140 134 — — Joint ventures Balance brought forward 5,037 4,140
Assets held for sale — –18 –5 — — –23 Joint ventures are companies in which the Group has joint con- New share issues and
Translation differences 1,374 20 581 64 1 2,040
trol with one or several other external parties. A joint venture shareholders’ contributions 591 478
entails that the parties that have joint control of the arrangement Withdrawals/Repaid shareholders’
Accumulated cost carried forward 42,541 3,233 17,789 2,563 115 66,241
have rights to the net assets of the arrangement. Joint ventures contributions –386 —
Amortisation according to plan are reported in accordance with the equity method. Reclassifications from
Amortisation brought forward — –1,651 –13,974 –1,418 –35 –17,078 other shares and participations 12 —
Acquired companies — — –1 — — –1 Key accounting estimates and judgements Impairment losses –40 —
Amortisation for the year — –178 –392 –776 –1 –1,347 Consolidation method for partnerships Changes in other
Divestments/disposals — 48 29 522 — 599 For judgements regarding whether a joint arrangement is a joint comprehensive income –185 368
venture or a joint operation refer to Note 26, Shares and partici- Profit participations and dividends 181 –96
Reclassifications — –2 90 –87 — 1
pations in subsidiaries and joint operations. Translation differences –298 147
Assets held for sale — 18 3 — — 21
Translation differences — –20 –444 –41 –1 –506 Balance carried forward 4,912 5,037
Accumulated amortisation according
to plan carried forward — –1,785 –14,689 –1,800 –37 – 18,311
Impairment losses
Impairment losses brought forward –26,000 –212 –1,404 — –69 –27,685
Impairment losses for the year — — –20 — — –20
Translation differences –885 — –78 — — –963
Accumulated impairment losses
carried forward –26,885 –212 –1,502 — –69 –28,668
Balance carried forward 15,656 1,236 1,598 763 9 19,262
Advance payments to suppliers —
Total 19,262
Contractual commitments for acquisitions of intangible assets amounted to SEK 0 million (1) as per 31 December 2025.
Expenses for research and development during 2025 amounted to SEK 471 million (472).
Vattenfall Annual and Sustainability Report 2025 175
Financial information / Consolidated notes
Note 25 Participations in associated companies and joint ventures, cont.
Participations in associated companies and joint ventures Participations in associated companies and joint ventures, cont
Carrying amount Carrying amount
Group parent company Carrying amount Carrying amount
Corporate Registered Participation Group parent company
Identity Number office in % 20251 2025 2024 2025 2024 Corporate Registered Participation
Identity Number office in % 20251 2025 2024 2025 2024
Owned by the parent company Vattenfall AB Zeevonk Phase 1 C.V.2 93311893 Amsterdam 50 572 178 — —
Sweden Zeevonk Phase 2 Beheer B.V.2 97466786 Amsterdam 50 0 — — —
Hybrit Development AB 559121-9760 Stockholm 33 142 153 557 557 Zeevonk Phase 2 C.V.2 97556645 Amsterdam 50 0 — — —
Total 4,912 5,037 557 557
Norway
NorthConnect KS 996625001 Kristiansand 33 43 45 0 0 1. The proportion of ownership interest is the same as the proportion of voting rights held.
NorthConnect AS 995878550 Kristiansand 30 11 12 0 0 2. Joint ventures
Owned by other group companies
Share of profit in associated companies and joint ventures
Sweden 2025 2024
Blakliden Fäbodberget Holding AB 559148-3408 Solna 30 0 57 — — Sweden
UK Blakliden Fäbodberget Holding AB –28 –102
East Anglia Offshore Wind Ltd2 06990367 London 50 50 56 — — Hybrit Development AB –11 –38
Muir Mhòr Offshore Wind Farm Limited 717262 Edinburgh 50 412 393 — — Germany
Germany BTI BLOHM & TEREG Industriedienstleistungen GmbH –1 —
BTI BLOHM & TEREG GASAG AG 314 193
Industriedienstleistungen GmbH HRB 53644 Hamburg 50 3 — — — TEREG Gebäudedienste GmbH 7 —
E & V Windfeld Birkhorst GmbH2 HRB 13342 Schenkenberg 50 2 2 — —
Netherlands
DOTI Deutsche Offshore-Testfeld-
Molenrak B.V. 2 –1
und Infrastruktur-GmbH & Co. KG HRA 200395 Oldenburg 26 0 0 — —
V.O.F. Windpark Oom Kees 1 1
GASAG AG HRB 44343 Berlin 32 3,008 3,245 — —
Westpoort Warmte B.V. 81 56
Kernkraftwerk Brokdorf GmbH & Co. oHG HRA 99143 Hamburg 20 0 0 — —
Zeevonk Phase 1 C.V. 1 –14
Kernkraftwerk Stade GmbH & Co. oHG HRA 99146 Hamburg 33 0 0 — —
Total 366 95
SZ Solarpark Schleife GmbH HRB 42410 Schleife 30 5 0 — —
TEREG Gebäudedienste GmbH HRB 10199 Hamburg 44 14 — — —
Vattenfall wiwi consult Erneuerbare Energie Significant associated companies and joint ventures Contingent liabilities – associated companies and
Südwest GmbH HRB 52191 Mainz 50 8 0 — — GASAG joint ventures
Netherlands GASAG is a German gas and energy company in which 2025 2024
B.V. Nederlands Elektriciteit Vattenfall is a partner. GASAG supplies Berlin and Brandenburg
with natural gas, electricity, and heat. It operates energy net- Contingent liabilities related to
Administratiekantoor, liquidated 09018339 Arnhem 23 — 0 — — associated companies and joint
Molenrak B.V.2 82937230 Amsterdam 58 –7 390 — — works and provides services such as metering and decentral- ventures excl German nuclear 1,163 1,537
OSwinT B.V. 74311883 Swifterbant 23 8 9 — — ised energy solutions.
– of which contingent liabilities Zeevonk 1,082 1,146
V.O.F. Windpark Oom Kees2 09210903 Amsterdam 13 4 4 — — – of which contingent liabilities GASAG — —
Zeevonk
Westpoort Warmte B.V.2 34121626 Amsterdam 50 509 455 — —
Zeevonk is a joint venture between Vattenfall and Copenhagen For commitments relating to German nuclear power (Kernkraft-
Zeevonk Electrolyser Beheer B.V.2 94367892 Amsterdam 50 0 0 — — Infrastructure Partners (CIP). In 2024, Zeevonk was granted a werk Brokdorf GmbH & Co. oHG and Kernkraftwerk Stade GmbH
Zeevonk Electrolyser C.V.2 94560129 Amsterdam 50 128 38 — — permit to build the IJmuiden Ver Beta offshore wind farm in the & Co. oHG) refer to Note 39, Contingent liabilities.
Zeevonk Phase 1 Beheer B.V.2 93309074 Amsterdam 50 0 0 — — Netherlands with a capacity of 2 GW. The permit was updated
during 2025. The project also includes a floating solar power park
and an electrolyser that will convert electricity into hydrogen.
Vattenfall Annual and Sustainability Report 2025 176
Financial information / Consolidated notes
Note 26 Shares and participations in subsidiaries and joint operation
Accounting policy Key accounting estimates and judgements Shares and participations owned by the parent company Vattenfall AB, cont
Subsidiaries Consolidation method for partnerships Carrying amount
Subsidiaries are all entities over which the parent company has On establishment of partnerships and in connection with any parent company
control. Control is when the Group is exposed to, or has the right restructuring of existing partnerships Vattenfall needs to assess Corporate Registered Number of Participation
to variable returns from its involvement in the entity and has the whether it controls the partnership, for example if Vattenfall has Identity Number office shares 2025 in % 20258 2025 2024
ability to use its power over the entity to affect the amount of control or joint control. When Vattenfall has joint control an Vattenfall Business Services Nordic AB6 556439-0614 Stockholm 100 100 130 130
returns. Business combinations are accounted for using the assessment of whether it is a joint venture, or a joint operation is
Vattenfall Elanläggningar AB5 556257-5661 Solna 1,000 100 1,201 1,201
purchase method. Subsidiaries’ financial statements, which are needed. In the assessment we consider the decision making,
Vattenfall Eldistribution AB5 556417-0800 Solna 8,000 100 38,000 38,000
prepared in accordance with the Group’s accounting policies, corporate form/legal structure, financing, risks, if Vattenfall is
Vattenfall Kundservice AB6 556529-7065 Umeå 100,000 100 30 30
are included in the consolidated accounts from the point of entitled to the net profit (loss) or to income and expenses result-
ing from the operation and if Vattenfall can use its control to Vattenfall Nuclear Fuel AB2 556440-2609 Solna 100 100 796 796
acquisition to the date when control ceases.
affect the returns from the partnership. The agreements are Vattenfall Power Management AB1 556573-5940 Stockholm 6,570 100 12 12
Joint operation unique and sometimes difficult to assess. Vattenfall Services Nordic AB2 556417-0859 Stockholm 16,000 100 669 669
A joint operation is when the Group has joint control with one Vattenfall Vattenkraft AB2 556810-1520 Stockholm 1,000 100 1 1
or more external parties over an arrangement. A joint operation Estimation uncertainty related to impairment testing Vattenfall Vindkraft AB4 556731-0866 Stockholm 1,000 100 4,400 3,000
entails that the parties that have joint control of the arrange- When testing for impairment of cash-generating units that Videberg Kraft AB2 559517-0571 Solna 50,000 100 0 —
ment have rights to the assets, and obligations for the liabilities, include consolidated subsidiaries and joint operations, assump- Västerbergslagens Energi AB1 556565-6856 Ludvika 14,674 51 15 15
relating to the arrangement. Arrangements where the parties tions need to be made regarding for example future cash flows.
buy or are assigned all power generated and are responsible for For more information regarding accounting principles and Germany
cost coverage are considered a joint operation if Vattenfall has assumptions refer to Note 27, Impairments and reversed Vattenfall GmbH6 (HRB) 124048 Berlin 500,000,000 100 51,168 51,168
joint control. In a joint operation, the respective owners recog- impairments. Netherlands
nise in relation to their interest in the joint organisation, their Vattenfall N.V.6 33292246 Amsterdam 136,794,964 100 44,138 44,138
assets and liabilities as well as their respective share of assets
and liabilities held or incurred jointly. Denmark
Vattenfall A/S6 213 11 332 Copenhagen 10,040,000 100 82 82
Vattenfall Network Solutions A/S5 sold 31894522 Copenhagen 5,000 100 — 89
Shares and participations owned by the parent company Vattenfall AB Vattenfall Vindkraft A/S4 31597544 Kolding 150,000 100 4,870 4,870
Carrying amount UK
parent company Vattenfall HEAT UK Limited1 2951085 London 17,000,002 100 100 1,521
Corporate Registered Number of Participation Vattenfall Networks Ltd5 sold 2731769 London 15,000,002 100 — 176
Identity Number office shares 2025 in % 20258 2025 2024
Vattenfall Wind Power Ltd4 6205750 London 646,000,001 100 10,510 10,510
Sweden
Other countries
Borås Elhandel AB1 556613-7765 Borås 1,000 100 100 100
Vattenfall AS4 Liquidated 931 124 692 Oslo 42,500 — — 0
Chlorout AB6 556840-9253 Stockholm 500 100 0 0
Vattenfall Eolien S.A.S.4 832352538 Boulogne
Enwell Holding AB1 556813-3846 Stockholm 1,230,000 100 353 353 Billancourt 1,000 100 182 182
Enwell AB1 556938-4307 Stockholm 2,000 100 312 — Vattenfall IT Services Poland Sp.z.o.o6 0000402391 Gliwice 58,000 100 12 12
Forsmarks Kraftgrupp AB2 556174-8525 Östhammar 198,000 66 5,346 5,346 Vattenfall Oy1 1842073-2 Helsinki 85 100 684 684
Försäkrings AB Vattenfall Insurance6 516401-8391 Solna 200,000 100 924 924 Total 165,136 165,149
Gotlands Energi AB1 556008-2157 Gotland 112,500 75 13 13
InCharge AB1 559178-6081 Stockholm 50,000 100 0 — 1. Included in the Customers & Solutions operating segment. 7. The Group owns an additional 30% through Forsmarks Kraftgrupp AB,
Klimatum AB1 sold 559030-1148 Stockholm 100 100 — 39 2. Included in the Power Generation operating segment (Generation). which means that Vattenfall Group directly and indirectly owns 56% of
3. Included in the Power Generation operating segment (Markets). Svensk Kärnbränslehantering AB
Produktionsbalans PBA AB2 556425-8134 Stockholm 4,800 100 5 5
4. Included in the Wind operating segment. 8. The proportion of participation is the same as the proportion of voting
Piscis AB1 559547-4981 Solna 25,000 100 0 0 5. Included in the Distribution operating segment. rights held.
Ringhals AB2 556558-7036 Varberg 248,572 70 1,083 1,083 6. Included in Other.
Svensk Kärnbränslehantering AB2 556175-2014 Solna 360 367 0 0
Vattenfall Annual and Sustainability Report 2025 177
Financial information / Consolidated notes
Note 26 Shares and participations in subsidiaries and joint operation, cont.
Larger shareholdings owned by other Group companies Sales of the electric power that is generated are made on a to 16.4 TWh (16.1), and the average availability for Ringhals was
than the parent company Vattenfall AB pro rata basis to the part owners at cost, pursuant to the consor- 96.1% (93.9) according to UCR (Unit Capability Ratio).
When calculating the participation percentages, consideration is tium agreement. In addition, the consortium agreement entails
taken to the non-controlling interests in the respective companies. that the part-owners are responsible for the company’s funding DanTysk Sandbank Offshore Wind
on a pro rata basis, and that the company’s operations shall in The DanTysk offshore wind farm was one of the first large
Registered Participation Registered Participation principle not generate any profit. Generation in 2025 amounted marine wind farms built in the German North Sea. The wind farm
office in % 20252 office in % 20252
to 23.8 TWh (21.8), and the average availability for Forsmark was comprises 80 wind turbines with a total capacity of 288 MW.
Sweden Netherlands 93.2% (93.7) according to UCR (Unit Capability Ratio). DanTysk began generating electricity in December 2014.
AB Svafo Nyköping 54 DELTA Energie B.V. Middelburg 100 The Sandbank wind farm comprises 72 wind turbines with
Vattenfall Kraftgården AB Ragunda 74 Feenstra N.V. Amsterdam 100 Ringhals a total capacity of 288 MW. The wind farm is located adjacent
Feenstra Verwarming B.V. Lelystad 100 Ringhals conducts nuclear power operations from four nuclear to DanTysk and was inaugurated in 2017.
Denmark reactors on the Swedish west coast in Varberg municipality. Two Both wind farms are part of the company DanTysk Sandbank
Vattenfall Vindkraft Nørrekær Nuon Epe Gas Service B.V. Amsterdam 100
of the reactors have been taken out of operation and decommis- Offshore Wind GmbH & Co. KG, in which Vattenfall Europe
Enge A/S Esbjerg 100 Vattenfall Storage B.V. Amsterdam 100
sioning has begun. Ringhals is owned by Vattenfall AB (70.4%) Windkraft GmbH owns 51% of the shares, and the partner
Vattenfall Customers & Solutions
Germany and Sydkraft Nuclear Power AB (29.6%). The part-owners have Stadtwerke München holds 49% of the shares. Vattenfall has
Netherlands N.V. Amsterdam 100
DanTysk Sandbank Offshore Wind a consortium agreement that regulates how the operations of control over DanTysk Sandbank Offshore Wind.
Vattenfall Duurzame Energie N.V. Amsterdam 100
GmbH & Co. KG Hamburg 51 Ringhals are conducted and how decision-making is done.
Vattenfall Energy Sourcing Ringhals is reported as a subsidiary in Vattenfall Group since Hollandse Kust Zuid
Kernkraftwerk Brunsbüttel GmbH Netherlands N.V. Amsterdam 100
& Co. oHG Hamburg 67 Vattenfall has control over Ringhals. Hollandse Kust Zuid is an offshore wind farm which was in
Vattenfall Energy Trading
Kernkraftwerk Krümmel GmbH Sales of the electric power that is generated are made on a augurated in September 2023 and is located in the North Sea.
Netherlands N.V. Amsterdam 100
& Co. oHG Hamburg 50 pro rata basis to the part-owners at cost, pursuant to the consor- The wind farm consists of 139 turbines with an aggregated
Vattenfall Klantenservice N.V. Amsterdam 100
Nuon Epe Gasspeicher GmbH Gronau 100 tium agreement. In addition, the consortium agreement entails capacity of 1.5 GW.
Vattenfall Sales Nederland N.V. Amsterdam 100 that the part owners are responsible for the company’s funding Vattenfall Duurzame Energie N.V. owns 50.51% of the shares.
Nordlicht Offshore Wind GmbH1 Hamburg 100
Vattenfall Warmte N.V. Amsterdam 100 on a pro rata basis, and that the company’s operations shall in The other owners are BASF, 24.25%, and Allianz, 25.24%.
Solizer Deutschland GmbH Hamburg 100
Zuidlob Wind B.V. Amsterdam 100 principle not generate any profit. Generation in 2025 amounted Vattenfall has control over Hollandse Kust Zuid.
Vattenfall Energy Trading GmbH Hamburg 100
Vattenfall Europe Information UK
Services GmbH Hamburg 100 Aberdeen Offshore Wind Farm Ltd Aberdeen 100 Financial information for subsidiaries with material non-controlling ownership interests
Vattenfall Europe New Energy GmbH Hamburg 100 Kentish Flats Ltd London 100
2025 2024
Vattenfall Europe New Energy Nuon UK Ltd Cornwall 100
Ecopower GmbH Rostock 100 DanTysk DanTysk
Ormonde Energy Ltd London 51 Sandbank Sandbank
Vattenfall Europe Sales GmbH Hamburg 100 Pen Y Cymoedd Wind Farm Ltd. Cornwall 100 Forsmarks Offshore Hollandse Forsmarks Offshore Hollandse
Vattenfall Europe Windkraft GmbH Hamburg 100 Kraftgrupp Ringhals Wind Kust Zuid Kraftgrupp Ringhals Wind Kust Zuid
Thanet Offshore Wind Ltd London 100
Vattenfall Next Energy GmbH Berlin 100 Income statements in summary
Vattenfall Real Estate Energy France
Net sales 7,790 6,215 3,167 2,910 7,643 6,554 4,205 2,611
Sales GmbH Berlin 100 Vattenfall Energies S.A. Didenheim 100
Profit for the year 887 1,972 –130 1,153 706 –495 992 1,162
Vattenfall Smarter Living GmbH Berlin 100 1. Vattenfall repurchased 49% of the shares in Nordlicht Offshore Wind – of which allocated to
Vattenfall Wasserkraft GmbH Berlin 100 GmbH on 25 March 2025 and owns since then 100% of the shares, refer non-controlling interests 194 14 –64 565 240 36 486 56
to Note 22, Acquired and divested operations, for further information on
the acquisition.. Balance sheets in summary
2. The proportion of participation is the same as the proportion of voting Non-current assets 62,088 50,424 7,194 28,212 60,047 50,145 9,626 31,228
rights held.
Current assets 17,252 10,206 891 1,446 15,868 8,758 1,062 1,308
Subsidiaries with material non-controlling ownership its largest owner, and Sydkraft Nuclear Power AB (8.5%). The Total assets 79,340 60,630 8,085 29,658 75,915 58,903 10,688 32,536
interests German state is the largest, controlling shareholder of Uniper, Equity 21,611 2,362 5,811 25,550 20,469 –66 8,553 28,142
Forsmarks Kraftgrupp which owns Sydkraft Nuclear Power AB. These part-owners
Liabilities 57,729 58,268 2,274 4,108 55,446 58,969 2,135 4,394
Forsmarks Kraftgrupp conducts nuclear power operations from have a consortium agreement that regulates operations and
Total equity and liabilities 79,340 60,630 8,085 29,658 75,915 58,903 10,688 32,536
three nuclear reactors in Östhammar municipality, Uppsala decision making for Forsmarks Kraftgrupp. Forsmarks Kraft-
County. Forsmarks Kraftgrupp is owned by Vattenfall AB (66.0%) grupp is reported as a subsidiary in Vattenfall Group since, Statement of cash flows in summary
and Mellansvensk Kraftgrupp AB (25.5%) which has Fortum as under the consortium agreement, Vattenfall controls Forsmarks Cash flow for the year 244 –25 –306 376 –26 11 356 –246
Kraftgrupp.
Vattenfall Annual and Sustainability Report 2025 178
Financial information / Consolidated notes
Note 27 Impairments and reversed impairments Note 28 Short-term investments
Accounting policy based on the business plan that covers a period of five years, Annual impairment test of cash-generating units 2025 2025 2024
The carrying values of goodwill, other intangible assets, prop- cash flows beyond have been extrapolated. The business plans Annual impairment testing was performed as of 31 December
erty, plant and equipment, and non-financial assets are reviewed include expenses to reach the intermediate targets on absolute 2025. The recoverable amounts of the cash generating units Interest-bearing investments 37,325 50,110
regularly for indication of impairment. Impairment testing is per- emissions across all emissions scope for 2030 which is part of were greater than their carrying values and therefore no impair- Total 37,325 50,110
formed if there is an indication of impairment, and the asset is Vattenfall’s transition plan towards net zero emissions in 2040. ments were recorded. Vattenfall generally uses value in use to
impaired to its recoverable amount if its carrying amount is Key estimates and assumptions include future market condi- establish the recoverable amount of cash-generating units and
greater than the estimated recoverable amount. Goodwill and tions, market prices of energy (electricity) and commodities, utili- this approach was applied in the impairment testing of all
other intangible assets that have an indefinite useful life, and as sation/production of power plants, useful lives of the projects cash-generating units 2025. Note 29 Cash and cash equivalents
such are not subject to amortisation, are tested annually for and discount rates.
impairment, even if there is no indication of impairment. Any Cash flow projections of power producing cash-generating Sensitivity analysis
impairment loss is recognised in the income statement. units are based on market forward rates for a period of up to five Vattenfall has considered the sensitivity of key assumptions as 2025 2024
Annual impairment testing is performed on a cash-generating years and on Vattenfall’s long-term market outlook for the part of the annual impairment test for goodwill. 98% of the good- Cash and bank balances 11,618 30,612
unit level. Vattenfall’s cash-generating units are based on the remainder of the period. The long-term market outlook is based will for the Group is related to the cash generating unit Custom- Cash equivalents 4,313 4,505
Group’s business areas and further split into the Group’s busi- on internal and external input parameters and benchmarked ers & Solutions in the Netherlands. The calculation is most sen-
Total 15,931 35,117
ness units and regions where relevant. against external price projections. Electricity prices are relevant sitive to a reduction in gross margin. Management estimates that
The recoverable amount is the higher of fair value less costs for hydro, non-subsidised wind and nuclear power plants, while no reasonably possible change in gross margin would cause the Cash equivalents are short-term, highly liquid investments that
to sell and value in use. Value in use is calculated by discounting the most important production margin is the “clean spark carrying amount to exceed its recoverable amount. are readily convertible to known amounts of cash and which are
future cash flows expected to be derived from the use of assets. spread” for gas-fired power plants. These spreads include elec- When performing the annual impairment test of the cash-gen- subject to an insignificant risk of changes in value.
Shareholdings in associated companies and joint ventures for tricity prices as well as the respective cost for fuel and CO2 emis- erating units the Group has also considered the sensitivity of the
which the equity method is applied are outside a cash generat- sion allowances to produce the electricity, considering fuel type key assumptions electricity prices and discount rate. A decrease
ing unit and thus tested for an impairment need on an individual and efficiency factors. Assumptions on utilisation/production of in future electricity prices by 5%, with unchanged costs for fuel
basis. power plants are based on past experience, technical assess- and CO2 emission allowances, would result in an impairment
ment and forecasted market development. Technical flexibility of need of SEK 0.15 billion in Business Area Wind. An increase in the
Reversed impairments the assets, that is the ability to adapt generation to changes in discount rate by 0,5 percentage points would result in no impair-
Non-financial assets, other than goodwill, that have been spot market prices, has also been taken into account. ment throughout all business areas.
impaired in the past are reviewed for possible reversal of impair- Cash flow projections of non-power producing cash-generat-
ment at each reporting date. An impairment loss is only reversed ing units are based on the business plan for the coming five Asset impairment test 2025
if a significant and lasting change has occurred in the estimates years, after which their residual value is taken into account, Impairment losses amounting to SEK 1,514 million (1,753) were
used to determine the recoverable amount, and the reversal based on a steady growth rate of 2% (0%). If the final year of the recognised in 2025.
does not exceed the carrying amount that the asset would have business plan does not represent a reasonable basis for An impairment of SEK 762 million was recognised relating to
had if the impairment loss had not been recognised. assessing long-term value, an extended forecast is used to district heating assets within the operating segment Customers
arrive at a steady-state earnings situation on which to calculate & Solutions, driven by expected lower future cash flows. The
Key accounting estimates and judgements the terminal value. recoverable amount was determined by calculating fair value
Estimation uncertainty related to impairment testing The discount rate varies for the various asset classes/ less costs to sell. In addition, impairments of SEK 712 million
The value in use calculations are based on management’s cash-generating units, depending on their risk. Market based related to wind power assets within the operating segment Wind
expectations about future cash flows. Future cash flows are information has been used when determining the discount rates. were recognised, primarily driven by deteriorating outlook for
electricity prices. The recoverable amount was determined by
calculating value in use.
Discount rates An impairment of SEK 40 million (0) was recognised regarding
2025 2024 shareholdings in associated companies and joint ventures.
Before tax After tax Before tax After tax
Discount rate BA Distribution Sweden, % 5.9 4.9 5.9 4.7 Impairment reversals 2025
Discount Rate BA Wind, % 6.9–9.2 5.7–7.4 6.3–8.9 4.4–6.7 No material previously recognised impairment losses have been
Discount Rate BU Heat, % 6.6 5.5 6.4–9.3 5.1–6.8 reversed in the income statement during 2025.
Discount Rate BA Customers & Solutions, % 6.9–7.5 5.7–6.0 6.7–7.1 5.0–5.3
Discount Rate BA Power Generation, % 6.9–8.2 5.7–6.5 6.7–8.4 5.3–6.9
Vattenfall Annual and Sustainability Report 2025 179
Financial information / Consolidated notes
Note 30 Financial instruments
Accounting policy Impairment taking the hedge transaction. The Group also documents its
Classification and measurement At each reporting date, Vattenfall records a provision that corre- assessment of whether the derivatives that are used in hedging
Financial instruments are initially recognised at fair value includ- sponds to the expected future credit losses for financial assets transactions are meeting the hedge accounting effectiveness
ing incurred transaction cost, except financial instruments val- that are reported at amortised cost. Vattenfall applies the simpli- criteria. The assessment is documented at inception and on an
ued at fair value through profit or loss. The financial instruments fied method for calculating credit losses. ongoing basis.
are subsequently measured at fair value or amortised cost For information on impairment of trade receivables, refer to
depending on which business model/category it belongs to. The Note 14, Trade receivables and other receivables. Cash flow hedges
change in value is reported in other comprehensive income or in For other financial assets reported at amortised cost a loss Vattenfall uses the following cash flow hedges:
the income statement. reserve is reported that corresponds to 12 months’ expected i) c ommodity derivatives to hedge commodity price
Settlement date accounting is applied for spot purchases credit losses at initial recognition. If the credit risk has increased risk in future purchases and sales,
and spot sales of financial assets. Other financial assets and lia- significantly since initial recognition, a reserve corresponding to ii) currency derivatives to hedge currency risk in
bilities are initially recognised when Vattenfall becomes part of expected credit losses during the lifetime is reported. Vattenfall future purchases and sales, and
the contractual terms of the instrument. Vattenfall derecognises presumes that the credit risk has not increased significantly if iii) interest rate swaps to hedge floating interest rate risk.
a financial asset when the rights to receive cash flows from the the instrument has a low credit risk on the balance sheet date
asset have expired or when substantially all the risks and (such as instruments with an investment grade rating). The The portion of the gain or loss on the hedging instrument that is
rewards associated with the asset have been transferred to an credit risk is considered to have increased significantly if the determined to be an effective hedge is recognised in Other
external party. Financial liabilities are derecognised when the counterparty’s rating has been lowered to a lower rating than comprehensive income and accumulated in the Hedging
obligation in the contract is discharged, cancelled or has at initial recognition. Expected credit losses are calculated by reserve within equity. The ineffective portion is recorded in the
expired. assessing the probability of, the loss in the event of and the income statement. When the hedged amount is due the
exposure to default. recorded amount in the hedging reserve is transferred through
Financial assets Other comprehensive income to the income statement, or capi-
Vattenfall has financial assets in the following categories: Financial liabilities talised in the balance sheet as part of the acquisition value. The
Vattenfall has financial liabilities in the following categories: hedged amount is capitalised in cases where the hedged item
Amortised cost refers to a non-financial balance sheet item (for example when
Assets are classified in this category if the objective is to receive Fair value through profit or loss hedging future purchases of fixed assets in foreign currency).
contractual cash flows that consist of principal amounts and This category includes Derivative liabilities that do not qualify for
interest. These assets are measured at amortised cost using hedge accounting and some Other financial liabilities (contin- Fair value hedges
the effective interest method, adjusted for expected credit gent consideration). The liabilities in this category are measured Fair value hedges is sometimes used to replace borrowings at
losses. This category includes Other non-current receivables, at fair value with changes in value recognised in the income a fixed interest rate with a floating interest rate.
Trade receivables and other receivables, margin receivables, statement when they occur.
certain Short-term investments, and Cash and bank balances. Hedges of net investments in foreign operations
Other financial liabilities Loans in foreign currency is used to hedge the currency risk in
Fair value through profit or loss Liabilities in this category are measured at amortised cost using Vattenfall’s net investments in foreign subsidiaries. The portion
This category includes assets held for trading, which entails that the effective interest method. This category includes inter- of the gain or loss on the hedging instrument that is determined
the objective is that they will be sold in the near term, assets est-bearing and non-interest-bearing financial liabilities that are to be an effective hedge is recognised in Other comprehensive
held for sale, and assets that Vattenfall is monitoring and meas- not held for trading purposes. This category includes Hybrid income and accumulated in the Translation reserve in equity.
uring based on fair value. Derivative assets are classified as held Capital, Other interest-bearing liabilities, Margin liabilities, Trade Gains and losses recorded in the Translation reserve is trans-
for trading, except for derivative instruments designated as a liabilities and other liabilities. Trade liabilities and other liabilities ferred to the income statement when the foreign operation is
hedging instrument in an effective hedge, where the principles are recorded to the amount they are expected to be settled. disposed of.
for hedge accounting are used. Gains and losses as a result of
changes in fair value are reported in the income statement Derivative instruments and hedge accounting Financial risk management
when they occur. This category includes Derivative assets that Vattenfall uses derivative instruments mainly to hedge commod- Risks arising from financial instruments are described in the
are not designated as effective hedging instruments, Share in ity price risk but also to hedge currency risk and interest rate risk. section Risk management – Financial risks, in this Annual and
the Swedish Nuclear Waste Fund, Other shares and participa- The relationship between hedging instruments and hedged Sustainability Report.
tions, some Short-term investments and Cash equivalents. items is documented at inception of the transaction, as well as
the Groups risk management objective and strategy for under-
Vattenfall Annual and Sustainability Report 2025 180
Financial information / Consolidated notes
Note 30 Financial instruments, cont.
Financial instruments by measurement category Offsetting financial instruments
2025 2024 Presented below are financial assets and liabilities that are subject to enforceable master netting arrangements and similar agreements.
Carrying Fair Carrying Fair
amount value amount value
Offsetting financial instruments 31 December 2025
Financial assets Related amounts not netted
in the balance sheet
Financial assets at fair value through profit or loss/other comprehensive income
Net amount Amount not
Share in the Swedish Nuclear Waste Fund 58,201 58,201 55,650 55,650 Gross amount offset presented on the intended to be Collateral Net
Derivative assets 9,857 9,857 11,966 11,966 Gross amount on the balance sheet balance sheet settled net1 received amount
Other shares and participations 199 199 225 225 Financial assets
Short-term investments 36,493 36,493 49,283 49,283 Commodity derivatives 48,727 39,843 8,884 — 263 8,621
Cash equivalents 4,313 4,313 4,505 4,505 Interest rate and currency derivatives 973 — 973 770 183 20
Financial assets at amortised cost Total derivative assets 49,700 39,843 9,857 770 446 8,641
Other non-current receivables 2,332 2,387 2,818 2,896 Financial liabilities
Trade receivables and other receivables 31,946 31,946 37,196 37,196 Commodity derivatives 51,589 39,843 11,746 — 837 10,909
Margin receivables 2,879 2,879 5,356 5,356 Interest rate and currency derivatives 2,755 — 2,755 770 1,899 86
Short-term investments 832 834 827 828 Total derivative liabilities 54,344 39,843 14,501 770 2,736 10,995
Cash 11,618 11,618 30,612 30,612
Total financial assets 158,670 158,727 198,438 198,517 Offsetting financial instruments 31 December 2024
Related amounts not set
Financial liabilities off on the balance sheet
Financial liabilities at fair value through profit or loss/other comprehensive Net amount Amount not
income Gross amount offset presented on the intended to be Collateral Net
Gross amount on the balance sheet balance sheet settled net1 received amount
Derivative liabilities 14,501 14,501 21,948 21,948
Other interest-bearing liabilities 164 164 335 335 Financial assets
Financial liabilities at amortised cost Commodity derivatives 82,805 72,642 10,163 — 8 10,155
Hybrid Capital 20,539 20,805 21,880 21,842 Interest rate and currency derivatives 1,803 — 1,803 1,224 567 12
Other interest-bearing liabilities 46,578 47,540 61,761 62,844 Total derivative assets 84,608 72,642 11,966 1,224 575 10,167
Margin liabilities 360 360 631 631 Financial liabilities
Trade payables and other liabilities 14,519 14,519 24,010 24,010 Commodity derivatives 91,376 72,642 18,734 — 3,280 15,454
Total financial liabilities 96,661 97,889 130,565 131,610 Interest rate and currency derivatives 3,214 — 3,214 1,224 1,860 130
Total derivative liabilities 94,590 72,642 21,948 1,224 5,140 15,584
1. These items cannot be settled net as each transaction has a unique due date and they were not entered into with the purpose to be settled net.
Settlement can only occur in case of default.
Calculation of fair value Vattenfall granted to BASF as part of the consideration for the
Vattenfall has financial instruments that are valued at fair value. shares in Nordlicht, refer to Note 22, Acquired and divested
These financial instruments are classified based on the extent operations for further information.
to which market data has been used in the calculation of fair Due to the long duration of the PPA, power forward rates are
value. Level 1 valuation refers to quoted prices in an active mar- not observable for the duration of the contract. As the German
ket for identical assets or liabilities. Level 2 valuation refers to power price is only observable for up to five years, Vattenfall has
market-based prices that are observable for the asset or liability used a fundamental long-term market outlook for forward rates.
either directly or indirectly, derived from prices. Level 3 valuation Vattenfall has used historical forward curves which have been
is based on unobservable data. extrapolated to estimate volatility.
Other interest-bearing liabilities in Level 3 refer to financial
Level 3 liabilities related to contingent considerations. The valuation
Derivative liabilities within level 3 consist of an option to enter has been made considering probability-weighted averages of
into a power purchase agreement (PPA) at a fixed price that several possible scenarios.
Vattenfall Annual and Sustainability Report 2025 181
Financial information / Consolidated notes
Note 30 Financial instruments, cont.
Fair value hierarchy 31 December 2025 Effects on income by category
Level 1 Level 2 Level 3 Total Net gains (+)/losses(–) and interest income and expenses for financial instruments recognised in the income statement:
Assets 2025 2024
Share in the Swedish Nuclear Waste Fund 58,201 — — 58,201 Net gains/ Interest Interest Net gains/ Interest Interest
Derivative assets — 9,857 — 9,857 losses1 income expenses losses1 income expenses
Short-term investments, cash equivalents, other shares and participations 36,691 4,314 — 41,005 Financial assets at fair value through profit or loss 5,441 1,293 — 16,927 1,664 –37
Total assets 94,892 14,171 — 109,063 Financial assets measured at amortised cost 18 871 — –87 1,917 —
Liabilities Financial liabilities at fair value through profit or loss –197 — — 10 — —
Derivative liabilities — 13,492 1,009 14,501 Financial liabilities measured at amortised cost 479 — –3,243 –1,830 — –3,952
Other interest-bearing liabilities — — 163 163 Total 5,741 2,164 –3,243 15,020 3,581 –3,989
Total liabilities — 13,492 1,172 14,664 1. Exchange rate gains and losses are included in net gains/losses.
Fair value hierarchy 31 December 2024 Unrealised changes in the fair value of commodity derivatives, for which hedge accounting is not applied, are included in the Cost of
Level 1 Level 2 Level 3 Total purchases with an amount of SEK 2,766 million (–9,899), refer to Note 8, Cost of purchases.
Assets
Share in the Swedish Nuclear Waste Fund 55,650 — — 55,650
Maturity analysis derivative assets and liabilities
Derivative assets — 11,966 — 11,966 Derivative assets Derivative liabilities
Short-term investments, cash equivalents, other shares and participations 47,687 6,325 — 54,012 Interest rate Interest rate
Total assets 103,337 18,291 — 121,628 Commodity and currency Commodity and currency
derivatives derivatives derivatives derivatives
Liabilities 2025 2024 2025 2024 2025 2024 2025 2024
Derivative liabilities — 21,948 — 21,948
Current 5,449 6,716 510 539 7,194 14,888 764 591
Other interest-bearing liabilities — — 335 335
1–2 years 2,101 2,345 94 279 2,557 2,569 314 297
Total liabilities — 21,948 335 22,283
3–5 years 1,198 1,026 23 296 764 1,032 458 415
> 5 years 137 76 345 688 1,232 245 1,218 1,911
Fair value hierarchy, level 3 A change in market value as of 31 December 2025 of +/–10% Total 8,885 10,163 972 1,802 11,747 18,734 2,754 3,214
2025 2024 would change the fair value of Vattenfall’s commodity derivatives
Opening balance 335 333 by +/– SEK 1,158 million (+/–1,771) in other comprehensive income Future undiscounted cash flows of financial liabilities
Additions 1,095 — (hedge-accounted derivatives) and +/– SEK 664 million (+/–667) The amounts included in the table below represent contractual undiscounted future cash flows for financial liabilities. Floating interest
in the income statement (non-hedge-accounted derivatives). cash flows with future interest fixing dates are estimated based on observable interest rate curves at year end. All future cash flows in
Revaluations recognised in the
income statement –227 — foreign currency are converted to SEK using the closing rate at year-end.
Exchange rate differences –31 2 Interest rate
For sensitivity analysis regarding interest rate refer to Interest Current portion 1–5 years >5 years Total
Balance carried forward 1,172 335 2025 2024 2025 2024 2025 2024 2025 2024
rate risk in the section Financial risks.
Hybrid Capital 742 809 21,265 23,884 — — 22,007 24,693
Sensitivity analysis Currency
Electricity price Other interest-bearing liabilities 14,415 13,523 12,420 25,115 30,190 32,270 57,025 70,908
For sensitivity analysis regarding currency, refer to Currency risk
The price of electricity is the main factor impacting the change in Margin liabilities 360 631 — — — — 360 631
in the section Financial risks.
fair value recognised in other comprehensive income. Changes Derivative liabilities 8,033 15,479 4,216 4,313 2,685 2,156 14,934 21,948
in fair value that are recognised in the income statement origi- Trade payables and other financial
nate from the prices for gas and oil. The sensitivity analysis is liabilities 14,519 24,010 430 362 1,351 1,476 16,300 25,848
based on volumes and market prices at year-end. The analysis Total 38,069 54,452 38,331 53,674 34,226 35,902 110,626 144,028
pertains to profit before tax.
For information regarding funding liquidity risk, refer to Funding liquidity risk in the section Financial risks.
Vattenfall Annual and Sustainability Report 2025 182
Financial information / Consolidated notes
Note 31 Interest-bearing liabilities and related financial derivatives Note 32 Leasing
Accounting policy bond of GBP 250 million, and one EUR bond of EUR 1 billion, Accounting policy Vattenfall is applying the practical expedient related to leases
Interest-bearing liabilities include Hybrid Capital and other inter- have set terms of 62 years. The second GBP bond of GBP 250 Vattenfall as lessee for which the underlying asset is of low value and short-term
est-bearing liabilities, mainly bond issues. For accounting policy million has a set term of 60.25 years. Vattenfall has an option at Lease contracts are recognised as right-of-use assets as well as leases. These contracts are expensed on a straight-line basis.
refer to Note 30, Financial instruments and Note 32, Leasing. specifically defined points in time to redeem the bonds at a call interest-bearing lease liabilities in the balance sheet.
Risks arising from financial instruments are described in the date prior to maturity. These call dates arise for the first time in The right-of-use-asset is initially measured at cost, which Vattenfall as lessor
section Risk Management and Financial risks in this Annual and 2027 for the EUR-denominated bond. comprise the initial amount of the lease liability adjusted for any Assets leased out under finance leases are not reported as
Sustainability Report. lease payments made at or before the commencement date, property, plant and equipment, since the risks associated with
Hybrid Capital any initial direct costs incurred and an estimate of costs to dis- ownership are transferred to the lessee. Instead, a financial
Hybrid Capital 2025 2024 mantle and remove the underlying asset. The right-of-use asset receivable corresponding to future minimum lease payments is
The hybrid bonds are reported as an interest-bearing liability Balance brought forward 21,880 20,987 is subsequently depreciated using the straight-line method from reported.
and are subordinated to Vattenfall’s other debt instruments. The Depreciation of discount/premium 5 5 the commencement date to the earlier of the end of the Assets leased out under operating leases are recorded as
credit rating agencies Moody’s and Standard & Poor’s classify Translation differences –1,346 888 assessed useful life or the end of the lease term. Right-of-use property, plant and equipment and are subject to depreciation.
50% of the hybrid bonds as equity in their credit analyses. The assets are included in property, plant and equipment in the bal-
Balance carried forward 20,539 21,880
two SEK bonds of SEK 3 billion and SEK 500 million, one GBP ance sheet. Key accounting estimates and judgements
The lease liability is initially measured at the present value of Measurement of lease liabilities and right-of-use assets
the lease payments outstanding at the commencement date of Accounting judgement is applied, when identifying lease con-
Maturity structure interest-bearing liabilities and attributable derivatives the agreement. If, at the inception of the agreement, Vattenfall is tracts and designating identified assets. Accounting judgement
reasonably certain that an extension option will be exercised, is also applied when determining the likelihood of the exercising
Current portion 1–5 years >5 years Total the lease payments during the option period are included in the extension options, and with regard to variable lease payments
2025 2024 2025 2024 2025 2024 2025 2024 calculation of the lease liability. The lease payments are dis- included in the lease liability.
counted using Vattenfall’s incremental borrowing rate, which is
Bond issues 10,837 10,741 5,705 17,544 13,460 14,728 30,002 43,013
updated twice a year. The lease liability is included in other inter- Vattenfall as lessee
Commercial papers 87 3,929 — — — — 87 3,929
est-bearing liabilities in the balance sheet. Also refer to Note 30, Leased property plant and equipment
Liabilities pertaining to acquisitions of subsidiaries 161 183 2 152 — — 163 335
Financial instruments for further disclosures. Vattenfall mainly leases land for windfarms, office buildings and
Liabilities to owners of non-controlling interests 822 –45 — — 6,823 6,879 7,645 6,834 vehicles.
Liabilities to associated companies 302 388 — — — — 302 388
Lease liability 1,194 879 3,130 2,274 3,892 4,028 8,216 7,181
Margin liabilities 198 622 — — — — 198 622 Right-of-use-assets
Other interest-bearing liabilities — — 198 250 128 166 326 416 Land Buildings Vehicles Other Total
Total interest-bearing liabilities excl. Hybrid Capital 13,601 16,697 9,035 20,220 24,303 25,801 46,939 62,718 Opening balance 4,180 1,943 537 255 6,915
Hybrid Capital — — 20,539 21,880 — — 20,539 21,880 Additions to the right-of-use-asset during the year 511 779 380 5 1,675
Total interest-bearing liabilities 13,601 16,697 29,574 42,100 24,303 25,801 67,478 84,598 Depreciation for the year –259 –494 –243 –219 –1,215
Other changes to the right-of-use-asset during the year 179 544 — 214 937
Derivatives (swaps) attributable to the
above interest-bearing liabilities –16 40 378 144 865 1,223 1,227 1,407 Translation differences –333 –92 –14 –14 –453
Balance carried forward 4,278 2,680 660 241 7,859
There are no covenants in the loan agreements.
The largest benchmark bonds issued by Vattenfall
Type Issued Currency Nominal amount Coupon % Maturity
Euro Medium Term Note 2019 EUR 500 0.500 2026
Euro Medium Term Note 2022 EUR 500 3.750 2026
Euro Medium Term Note 2021 EUR 500 0.125 2029
Euro Medium Term Note 2024 SEK 1,500 3.725 2032
Euro Medium Term Note 2009 GBP 750 6.875 2039
Vattenfall Annual and Sustainability Report 2025 183
Financial information / Consolidated notes
Note 32 Leasing, cont. Note 34 Interest-bearing provisions
Lease liability Future rental income for operating leasing Accounting policy Key accounting estimates and judgements
For changes in lease liabilities, refer to Supplementary informa- A provision is recognised when the Group has a legal or con- Assumptions used to estimate expenses for future
tion in connection with the consolidated statement of cash 2026 104 structive obligation as a result of a past event and it is probable commitments for nuclear power operations
flows. 2027 75 that an outflow of financial resources will be required to settle Provisions are recognised for future commitments regarding
For maturity structure of lease liabilities, refer to Note 30, 2028 56 the obligation and a reliable estimate of the amount can be decommissioning of Vattenfall’s nuclear power plants in
Financial instruments – Future undiscounted cash flows of made. Provisions are discounted when the effect of the time Sweden and Germany and regarding managing nuclear waste.
2029 34
f inancial liabilities. value of money is material. The discount effect is presented as In Sweden Vattenfall’s exposure to environmental risks related
2030 34
Total cash-outflows 2025 related to leases when Vattenfall a financial expense. to nuclear waste management extends until the final closure of
is the lessee amounted to SEK 1,587 million (1,343) of which 2031 and beyond 34 Changes in provisions relating to dismantling, restoration or the repositories (around 2080). Then the Swedish state takes
SEK 224 million (164) is related to interest expenses. Lease pay- Total 337 similar measures are recognised against the acquisition value of over the legal responsibility. In Germany Vattenfall’s exposure
ments amounting to SEK 765 million (776) have been expensed the respective fixed asset, provided that there is an asset that is to environmental risks related to nuclear waste management
in 2025 relating to short-term leases, leases for which the active. If there is not an active asset attributable to the provision, extends until the radioactive waste has been transferred to the
underlying asset is of low value and variable components of the change is recognised in the income statement. interim storage, then the German state takes over the legal
contracts. Provisions are reported for onerous contracts when the responsibility. The dismantling in Germany is expected to be
unavoidable costs of meeting the obligations under the contract completed around 2040.
Vattenfall as lessor exceed the economic benefits expected to be received from The provisions are based on long-term cash flow projections
Leasing revenues the contract. for future expenses. Key assumptions include technical plans,
Certain group companies own and operate power facilities on timing, cost estimates and discount rates.
behalf of customers. Revenue from customers are broken down Provisions for future commitments Inflation and interest have a significant effect on the provi-
into two components; a fixed component to cover capital for nuclear power operations sions. The macroeconomic development affects these parame-
expenses and a variable component based on the quantity Nuclear power producers in Sweden and Germany have a legal ters and in turn the outcome of Vattenfall’s reported nuclear
delivered. As of 31 December 2025, cost of assets leased out obligation upon the cessation of production to decommission power provisions. The ultimate forward rate (UFR) is used
amounted to SEK 5,056 million (6,101). Accumulated deprecia- and dismantle the nuclear power plants and to restore the site beyond the liquid market horizon for Swedish government
tion amounted to SEK 3,876 million (4,898) and accumulated where the plants are located. bonds with a convergence in between. The discount rate for the
impairment amounted to SEK 93 million (98). Vattenfall’s obligation in Sweden also encompasses the safe- Swedish nuclear power provisions amounted to 3.10% (3.00).
guarding and final storage of radioactive waste. The provisions The discount rate for the German nuclear power provisions
include future commitments for the handling and storing of low- amounted to 1.75% (1.00).
and intermediate-level radioactive waste at SVAFO (a partly The above assumptions are reassessed at each balance
owned subsidiary in Vattenfall Group). Vattenfall is responsible sheet date to ensure that the provisions represent the best esti-
Note 33 Share in the Swedish Nuclear Waste Fund for nuclear waste management until the final closure of the final mate of the expenses that will be carried by the Group. A future
repository, after which the Swedish state takes over the respon- change in assumptions could have a significant impact on the
sibility. According to Swedish law, the reactor owner pays a pro- Group’s financial statements.
According to the Swedish Nuclear Activities Act (1984:3), any Share in the Swedish Nuclear Waste Fund duction-based fee to the Swedish Nuclear Waste Fund, com-
organisation in Sweden with a permit to own or run a nuclear 2025 2024 pensation from the fund is received as the obligations under Discount rate
installation is obliged to dismantle the plant in a safe manner, to Swedish law are fulfilled, refer to Note 33, Share in the Swedish For other types of provisions than those for future commitments
Balance brought forward 55,650 52,175
manage spent fuel and other radioactive waste and to conduct Nuclear Waste Fund. of nuclear power operations, the following discount rates are
Payments 3,044 2,733
necessary research and development. The permit holder shall Vattenfall’s obligation in Germany also includes the transfer used, when the discounting effect is material: Sweden 1.50%
also finance this dismantling. The financing of future fees for Disbursements –2,504 –2,044
of radioactive waste to the interim storage facilities operated by (1.50), Germany 1.50% (1.50) Netherlands 1.75% (1.25–1.75),
spent nuclear fuel is currently ensured by Swedish law. The Returns 2,011 2,786 the German state. Once the radioactive waste has been trans- Denmark 1.50% (1.75) and the UK 2.75% (2.75).
reactor owner is required to pay a generation-based fee to the Balance carried forward 58,201 55,650 ferred to the interim storage, the German state takes over the
board of the Swedish Nuclear Waste Fund, which manages legal responsibility for the operation and costs of the interim
paid-in funds. The reactor owner receives compensation from As stated in Note 34, Interest-bearing provisions, provisions for storage and final repositories.
the Swedish Nuclear Waste Fund for its expenses as the obliga- future expenses for decommissioning within Swedish nuclear
tions under Swedish law are fulfilled. power operations amount to SEK 86,909 million (87,817). Con-
tingent liabilities attributable to Swedish Nuclear are described
Accounting policy in Note 39, Contingent liabilities.
The share in Swedish Nuclear Waste Fund is accounted for at
fair value through profit or loss.
Vattenfall Annual and Sustainability Report 2025 184
Financial information / Consolidated notes
Note 34 Interest-bearing provisions, cont.
Interest-bearing provisions Dismantling and other environmental measures Legal disputes
Current portion Non-current portion Total Provisions are recorded for the dismantling and removal of Provisions are recorded for future commitments due to ongoing
2025 2024 2025 2024 2025 2024 assets and restoration of sites where the Group conducts its legal disputes and actions.
operations other than nuclear.
Future commitments of nuclear power operations 2,587 2,354 101,234 105,402 103,821 107,756
Other
Dismantling and other environmental measures 101 76 16,748 16,450 16,849 16,526
Personnel-related (non-pension) Other provisions include, among others, provisions for onerous
Personnel-related (non-pension) 378 366 1,650 1,711 2,028 2,077 Provisions are recorded for future commitments regarding long- contracts, restructuring and guarantee commitments.
Legal disputes 6 6 743 734 749 740 term time accounts, jubilee payments, severance payments
Other 94 114 2,335 3,073 2,429 3,187 related to restructuring measures, and other commitments for
Total 3,166 2,916 122,710 127,370 125,876 130,286 giving notice to personnel.
Provisions for future commitments for nuclear power operations
Sweden Germany Total Maturity structure of long-term interest-bearing provisions
Balance brought forward 87,817 19,939 107,756 Future commit- Dismantling and Personnel-
ments nuclear other environ- related Legal
Recorded in the income statement Germany mental measures (non-pension) disputes Other Total
– Additional provisions/changed assumptions –724 –187 –911
2–5 years 6,538 2,843 592 743 2,304 13,020
– Unused amounts reversed — –84 –84
6–10 years 5,843 6,041 581 — — 12,465
– Unwinding of discount effect 1,070 192 1,262
11–20 years 1,944 1,736 426 — — 4,106
Amounts used during the year –2,711 –1,884 –4,595
Beyond 20 years — 6,128 51 — 31 6,210
Revaluations recorded to property, plant and equipment 1,457 — 1,457
Total 14,325 16,748 1,650 743 2,335 35,801
Translation differences — –1,064 –1,064
Balance carried forward 86,9091 16,9122 103,821
Payments of future commitments for nuclear power in Sweden are not included in the amounts reported above, since the owners of
1. Of which, approximately 33% (34) pertains to the dismantling of nuclear power plants and approximately 67% (66) to the handling of radioactive waste. the reactors are compensated in corresponding amounts from the Swedish Nuclear Waste Fund, see Note 33, Share in the Swedish
2. Of which, approximately 67% (68) pertains to the dismantling of nuclear power plants and approximately 33% (32) to the handling of radioactive waste. Nuclear Waste Fund. Contingent liabilities attributable to Swedish Nuclear are described in Note 39, Contingent liabilities.
Other provisions than provisions for future commitments for nuclear power operations
Dismantling and other Personnel–related Legal
Note 35 Pension provisions
environmental measures (non–pension) disputes Other
Accounting policy assets. The discount rate consists of the interest rate of the
Balance brought forward 16,526 2,078 740 3,187
Vattenfall’s pension obligations in the Group’s Swedish and alance sheet date of high quality corporate bonds with life-
b
Recorded in the income statement German companies are to a large extent defined benefit pen- times that correspond to the Group’s pension obligations. When
– Additional provisions/changed assumptions 95 408 11 –24 sion obligations. The pension plans include primarily retirement there is no active market in corporate bonds of this kind, the
– Unused amounts reversed –30 –15 –14 –500 pensions, disability pensions and family pensions. There are market rate yield on government bonds with an equivalent
– Unwinding of discount 288 48 16 — also pension plans in these and other countries that are defined lifetime should be used instead.
Amounts used during the year –61 –397 –2 –187 contribution plans. Items related to the earnings of defined benefit pensions and
interest on the net of defined benefit plans assets and liabilities
Revaluations recorded to balance sheet 1,065 –1 — –11
Defined benefit pension plans are recognised in the income statement. Remeasurements rec-
Acquired companies — 3 — 1
The Group’s defined benefit pension obligations are calculated ognised in Other comprehensive income under the heading
Assets held for sale –20 — — 5
separately for each plan in accordance with the Projected Unit “Items that will not be reclassified to profit or loss” consist of
Translation differences –1,014 –96 –2 –42 Credit Method by calculating employees’ current and past ser- actuarial gains and losses. Actuarial gains and losses arise from
Balance carried forward 16,849 2,028 749 2,429 vice cost. Estimated future salary increases are taken into con- the effects of changes in actuarial assumptions and from experi-
sideration as well as taxes levied on pension costs, for example, ence adjustments (the effects of differences between the previ-
the Swedish special employers’ payroll tax (“särskild löneskatt”). ous actuarial assumptions and actual outcome). The difference
The net obligation comprises the discounted present value of between the actual and the calculated return on pension assets
the total earned future salaries less the fair value of any plan are also recognised in Other comprehensive income.
Vattenfall Annual and Sustainability Report 2025 185
Financial information / Consolidated notes
Note 35 Pension provisions, cont.
Defined contribution pension plans reported as a defined contribution plan. This year’s share of the Hamburg Dutch pension plans
Defined contribution pension plans are post-employment bene- total savings premium in Alecta is 0.3365%, while Vattenfall’s Vattenfall has pension obligations for employees in Hamburg In the Netherlands Vattenfall has the majority of the pension
fit plans according to which fixed fees are paid to a separate share of the total number of actively insured in Alecta is that mainly consist of the company’s obligations to personnel obligations secured through the ABP pension fund and the
legal entity. There is no legal or constructive obligation to pay 1.49638 %. Alecta’s surplus can be distributed among the and pensioners employed before 1 April 1991 in the former com- “Metaal en Techniek” pension fund. The ABP and “Metaal en
additional fees if the legal entity does not have sufficient assets policyholders and/or the insured. At the end of 2025, Alecta’s pany HEW AG, and who have been employed for at least Techniek” plans are classified and reported as defined
to pay all benefits to the employees. Fees for defined contribu- surplus in the form of its so-called collective funding amounted 10 years. The sum of the retirement pension, statutory pension contribution plans.
tion pension plans are reported as an expense in the income to 167% (162%). Collective funding consists of the fair value of and pensions from third parties normally amounts to a maxi-
statement in the period they occur. Alecta’s assets as a percentage of the insurance obligations mum of 65% of the pensionable salary.
c alculated in accordance with Alecta’s actuarial calculation
Key accounting estimates and judgements assumptions.
Assumptions used to calculate future pension obligations Defined benefit pension plans
2025
The value of pension obligations for defined benefit pension German pension plans
Germany
plans is determined through actuarial computations that are The pension plans in Germany are based on collective agree-
Sweden Plan Berlin Plan Hamburg Total
based on assumptions about the discount rate, future salary ments. Substantial defined benefit plans exist for employees in
increases, inflation and demographic conditions. Berlin and Hamburg. Present value of unfunded obligations 11,932 71 12,016 24,019
For pension provisions in Sweden, the discount rate Present value of fully or partly funded obligations — 5,759 112 5,871
amounted to 4.0% (3.5). The discount rate is based on mortgage Berlin Present value of obligations 11,932 5,830 12,128 29,890
bonds with high credit ratings, which market is large and liquid. Two defined benefit pension plans exist, both secured through Fair value of plan assets — 4,671 97 4,768
In Germany, where the discount rate is based on high quality Pensionskasse der Bewag, a mutual insurance company based Net defined benefit obligation 11,932 1,159 12,031 25,122
corporate bonds, the discount rate amounted to 4.0% (3.5). on the statutes of the Bewag pension fund. Obligations are
secured through funds paid in by member companies and their 2024
Financial information employees. Pensionskasse der Bewag’s operations are super- Germany
Swedish pension plans vised by a regulatory authority. The plan assets attributable to Sweden Plan Berlin Plan Hamburg Total
The Swedish pension plans supplement the Swedish social personnel of Vattenfall companies are differentiated according
insurance system and are the result of agreements between to the two plans and are reported as plan assets at fair value. Present value of unfunded obligations 12,699 87 13,801 26,587
employer and employee organisations. Essentially all Vattenfall The assets of Pensionskasse are investment funds that are not Present value of fully or partly funded obligations — 6,554 68 6,622
employees in Sweden are enrolled in the collectively bargained listed on the stock exchange. The fair value is determined by the Present value of obligations 12,699 6,641 13,869 33,209
ITP–Vattenfall pension plan. For employees born in 1978 and repurchase price. Fair value of plan assets — 5,261 58 5,319
earlier, the plan is mostly a defined benefit solution, while for The pension plan for employees and retirees provided in addi- Net defined benefit obligation 12,699 1,380 13,811 27,890
employees born in 1979 and later, the plan is entirely a defined tion to pension fund benefits shown, is based on a supplemen-
contribution solution. tary agreement to grant a pension subsidy. For employees who
In defined benefit pension solutions, the employee is guaran- began their employment before 1 January 1984 and work until Changes in obligations Changes in plan assets
teed a lifetime pension that corresponds to a set percentage of retirement age, the pension is based on up to 80% of the salary. 2025 2024 2025 2024
the employee’s final salary. Defined benefit pensions are secured Half of the statutory pension and the entire benefit from Pen-
Balance brought forward 33,209 33,831 Balance brought forward 5,319 5,739
through provisions on the balance sheet, and the obligation is sionskasse der Bewag, including surpluses, are credited to the
guaranteed amount. Vattenfall’s obligations encompass the Benefits paid by the plan –2,005 –2,282 Benefits paid by the plan –281 –461
covered by credit insurance with PRI Pensionsgaranti. In addition,
certain pensions attributable to the time prior to Vattenfall’s entire pension obligation. Service cost 436 328 Contributions by employer 27 50
incorporation are covered by a government guarantee via the The second plan covers employees and retirees who began Contributions by plan participants 6 12 Contributions by plan participants 6 12
Swedish National Debt Office. Defined contribution pensions their employment between 1 January 1984 and 31 December Actuarial gains (–) or losses (+) due to Interest income 175 270
are secured through insurance with any of the insurance compa- 2006. The pension which is dependent on employment time changes in financial assumptions –1,964 –576 Difference between calculated
nies that are electable within the framework of the ITP plan. can amount to maximum 50% of the monthly salary. The plan is Actuarial gains (–) or losses (+) due to and actual return and effects
Certain of Vattenfall’s obligations in the ITP plan such as fully funded and reported a surplus at 31 December 2025. In experience adjustments 216 –28 from asset ceiling –187 –461
spousal benefits and disability pensions are secured through an accordance with IAS 19 and IFRIC 14, the recognised net asset is Actuarial gains (–) or losses (+) due to Divested companies — –18
insurance policy from Alecta. According to a statement (UFR 10) limited to the present value of economic benefits available in the reclassifications — 4 Translation differences –291 188
issued by the Swedish Financial Reporting Board, this plan is a form of refunds from the plan or reductions in future contribu- Current interest expense 1,100 1,224 Balance carried forward 4,768 5,319
multi-employer defined benefit plan. As in previous years, tions. As a result, an adjustment of SEK 750,6 million (746,5) has Divested companies — 5
Vattenfall has not had access to information to make it possible been recorded to reflect the asset ceiling. This adjustment rep- Translation differences –1,108 691
to report this plan as a defined benefit plan. The pension plan resents the portion of the surplus that cannot be realised under Balance carried forward 29,890 33,209
according to ITP secured by insurance in Alecta is therefore the current plan terms and applicable regulations.
Vattenfall Annual and Sustainability Report 2025 186
Financial information / Consolidated notes
Note 35 Pension provisions, cont. Note 36 Financial income and expenses
Plan assets consist of the following Pension costs Accounting policy costs for raising loans are distributed over the term of the loan in
Interest income is reported as it is earned. The calculation is accordance with the effective interest method. Borrowing costs
2025 2024 2025 2024
made on the basis of the return on underlying assets in accord- directly attributable to investment projects in property, plant
Shares and participations 3,442 3,749 Defined benefit plans: ance with the effective interest method. Dividend income is and equipment that take a substantial period of time to com-
Interest-bearing instruments 198 290 Current service cost 435 326 reported when the right to receive payment is established. Inter- plete are not reported as a financial expense but are included in
Property 888 1,100 Interest expenses 1,100 1,224 est income is adjusted for transaction costs and any discounts, the asset’s cost during the construction period. Leasing fees are
Other 240 180 Interest income –175 –270 premiums and other differences between the original value of allocated between interest expense and amortisation of the out-
the receivable and the amount received at maturity. standing liability. The interest expense is allocated over the
Total 4,768 5,319 Past service cost 1 2
For calculation of interest effects attributable to provisions, lease term so that each reporting period is charged with an
Total cost for defined benefit plans 1,361 1,282
various discount rates have been used, see Note 35, Pension amount corresponding to a fixed interest rate for the reported
Cost for defined contribution plans 1,078 1,024
provisions, and Note 34, Interest-bearing provisions, for the debt in each period. Variable fees are carried as an expense in
Total pension costs 2,439 2,306 discount rates used. Issue costs and similar direct transaction the period in which they arise.
Actuarial assumptions used
Sweden Germany Financial income Financial expenses
% 2025 2024 2025 2024 2025 2024 2025 2024
Discount rate 4.00 3.50 4.00 3.50 Interest income attributable Interest expenses attributable to loans 3,299 3,933
to investments 2,171 3,592 Interest expenses attributable
Future annual salary increases 2.75 2.75 2.50 2.50
Net change in value from to leasing 224 164
Future annual pension increases 1.75 1.75 0–2.75 0–3.0 remeasurement of derivatives 645 — Interest effects attributable
Dividends 63 68 to interest-bearing provisions 1,616 1,629
Exchange rate differences, net 73 — Interest expenses for the net of
Sensitivity to key actuarial assumptions Capital gains from divestments pension provisions and plan assets 925 954
Sweden Germany
of shares and participations 4 5 Exchange rate differences, net — 395
2025 2024 2025 2024
Total 2,956 3,665 Net change in value from
MSEK % MSEK % MSEK % MSEK %
remeasurement of derivatives — 154
Impact on the defined benefit obligation Net change in value from
at 31 December of a: remeasurement of other
Increase by 50 basis points in the discount rate –885 –7.4 –979 –7.7 –891 –5.0 –1,075 –5.2 financial assets 21 6
Decrease by 50 basis points in the discount rate 985 8.3 1,095 8.6 979 5.5 1,186 5.8 Impairment losses for shares
Increase by 50 basis points in the inflation rate 1,003 8.4 1,340 10.5 173 1.0 799 3.9 and participations — 108
Decrease by 50 basis points in the inflation rate –908 –7.6 –1,206 –9.5 –160 –0.9 –728 –3.5 Capital losses from divestments
of shares and participations 1 —
Increase by 50 basis points in the annual salary increases 213 1.8 200 1.6 540 3.0 594 2.9
Total 6,086 7,343
Decrease by 50 basis points in the annual salary increases –191 –1.6 –190 –1.5 –502 –2.8 –548 –2.7
As of 31 December 2025 the weighted duration of pension obligations was 11.0 (11,6) years for Germany and 13.3 (14.0) years for Sweden.
Vattenfall Annual and Sustainability Report 2025 187
Financial information / Consolidated notes
Note 37 Specifications of equity Note 38 Specifications of the cash flow statement
Share capital Hedging reserve For changes in financial liabilities see Supplementary Divestments
As of 31 December 2025 the registered share capital comprised The hedging reserve mainly comprises unrealised changes in information in connection with the consolidated statement 2025 2024
131,700,000 shares with a share quota value of SEK 50. the fair value of commodity derivatives used to hedge the price of cash flows. Divestments of operations 764 34,235
of future sales (cash flow hedges). The change in the hedging Settlement of debt in connection
Translation reserve reserve for the year relating to cash flow hedges, transferred Other, including non-cash items with divested operation — 6,340
The translation reserve comprises all exchange rate differences to the income statement, amounted to SEK –6,889 million 2025 2024
Divestments of intangible assets 1 3
arising from the translation of financial statements of foreign (–19,397), of which SEK –6,888 million (–19,397) was recognised Undistributed results from Divestments of property,
operations that prepare their reports in a currency other than in net sales. participation in associated companies –132 148 plant and equipment 712 422
the one in which the Group’s reports are presented. Further- Unrealised foreign exchange Total 1,477 41,000
more, the translation reserve includes exchange rate differences Retained earnings including profit for the year gains/losses 2 14
arising from the remeasurement of liabilities designated as Retained earnings including profit for the year include earned Unrealised changes in values
related to derivatives 3,116 –9,535
For more information on divestments refer to Note 22, Acquired
hedges for net investments in foreign operations. profits in the parent company and its subsidiaries, associated
and divested operations.
companies and joint ventures, as well as the effects of remeas- Changes in the Swedish Nuclear
urements related to defined benefit pension plans. Waste Fund –539 –689
Changes in provisions –7,011 –1,366
Other 847 –1,592
Translation exposure of equity in other currencies than SEK
Total –3,717 –13,020
Equity Hedging after tax Net exposure after tax Average net exposure after tax
Original currency 2025 2024 2025 2024 2025 2024 2025 2024 Dividends received totalled SEK 200 million (208).
EUR 86,644 97,090 21,455 22,722 65,189 74,369 67,914 54,453
DKK 11,091 12,005 — — 11,091 12,005 11,350 13,029
GBP 15,466 15,346 6,154 6,858 9,312 8,488 9,053 15,359
Total 113,201 124,441 27,609 29,580 85,592 94,862 88,317 82,841
Vattenfall Annual and Sustainability Report 2025 188
Financial information / Consolidated notes
Note 39 Contingent liabilities
Accounting policy (in Vattenfall’s case, Vattenfall GmbH) are liable for amounts in 2024, no security under the LRO is required, following a decision • Ringhals: EUR 93 million (70.4% of EUR 132 million), pertaining
A contingent liability is a present obligation that arises from past excess of this, in proportion to the ownership interests the by the Swedish Radiation Safety Authority. In 2024, the Swedish to 2022.
event but is not recognised as a liability or provision because it respective parent companies have in the nuclear power plants. Government decided that Svafo and SKB’s facility for the reposi- • Forsmark: EUR 87 million (66.0% of EUR 132 million), pertain-
is not probable that an outflow of resources will be required to It is not until these resources are exhausted that a joint liability tory for short lived radioactive waste (SFR) should be classified ing to 2022.
settle the obligation or because the amount of the obligation insurance agreement (Solidarvereinbarung) takes force as low risk facilities. As a result, their required security only
between the owners of the German nuclear power plants needs to amount to EUR 70 million, which can be covered by • Ågesta: EUR 208 million (100% of the required guarantees),
cannot be measured with sufficient reliability.
(Vattenfall GmbH, E.ON, RWE and EnBW), for amounts up to EUR insurance. This decision applies until 5 December 2034. In pertaining to 2022–2023.
Commitments related to Swedish hydro power 2,500 million. Since the liability is unlimited, the nuclear power 2025, the Government further decided that SKB’s security • AB Svafo: EUR 113 million (53.6% of EUR 211 million), pertaining
In certain rivers, joint regulation facilities exist for several hydro plants and their German parent companies are ultimately liable requirement for transport operations and the central interim to calendar years 2022–2024
power plants. The owners of the power plants have payment for losses that exceed this amount. storage facility for spent nuclear fuel (Clab) shall not exceed • SKB Transporter: EUR 106 million (55.8% of the required guar-
obligations for their share of these regulation costs. Vattenfall owns nuclear power plants in Germany together EUR 370 million. This decision applies until 25 September 2035. antees), pertaining to 2022–2025
Vattenfall has an obligation to compensate certain owners with a partner in the legal form oHG partnerships. The liability of Insurance covering NTPL is issued by Nordic Nuclear Insurers The guarantees are issued on a pro rata basis, meaning that
of water rights, in rivers where hydro power stations are built, partners in those partnerships is joint and several. Accounting is (NNI) and by the nuclear industry’s mutual insurance company Vattenfall AB is liable only for its ownership share. For Ågesta,
through the delivery of power. In 2025, such compensation based on the assessment that the partnerships themselves as ELINI (European Liability Insurance for the Nuclear Industry). Vattenfall AB is the licence holder and therefore responsible for
deliveries amounted to 1 TWh (0.9), for a value of approximately well as that the partners are able to fulfil the legal and financial When the insurance market cannot cover the full amount of the entire amount. No PCG have been issued for SKB SFR or
SEK 211 million (231). obligations of the partnerships. The total amount of the liabilities security required under the LRO, the owners of nuclear compa- SKB Clab.
Under Swedish law, Vattenfall has strict and unlimited liability (including provisions) of the German nuclear companies as per nies provide PCG as supplementary security.
for third-party loss resulting from dam accidents. Together with 31 December 2025 is as follows: As of 31 December 2025, all facilities have obtained NTPL Commitments related to Swedish nuclear waste
other dam owners in the Nordic countries, Vattenfall has a liabil- insurance coverage through NNI and ELINI. Under the Swedish Act (2006:647) on the Financing of Nuclear
ity insurance with a maximum of EUR 900 million (900) in bene- Of which
reported in Waste, anyone who has a licence to conduct nuclear activities
fits for these types of claims. 31 December 2025
Vattenfall’s must provide collateral to the state to guarantee that sufficient
In the Energy Agreement of 2016, it was decided that the Vattenfall's Total consolidated Requested Of which funds are available for future waste management. The collateral
hydropower industry itself should finance the transition to mod- share % liabilities statements collateral insurance
Vattenfall’s 100%, cover, takes the form of guarantees issued by the owners of the
ern environmental conditions. The Hydropower Environment Kernkraftwerk Brunsbüttel share % MEUR MEUR nuclear power companies. The government has decided that
Fund Sweden AB was established in 2018 by Vattenfall, Uniper, GmbH & Co. oHG 66.7 10,208 10,208 the guarantees shall amount to a total of SEK 47.2 billion.
Statkraft, Fortum, Tekniska verken i Linköping, Mälarenergi, Ringhals 70.4 1,200 1,200
Kernkraftwerk Krümmel In December 2025, the Government decided that the guaran-
Jämtkraft, Skellefteå Kraft and Holmen. A joint financing of GmbH & Co. oHG 50.0 14,467 7,234 Forsmark 66.0 1,200 1,200 tees related to the Financing Security will be increased further
SEK 10 billion, of which Vattenfall accounts for just over 50%, Kernkraftwerk Stade Svafo 53.6 70 70 during 2026. For Vattenfall, this means that the Financing
over a 20-year period will be used to improve the water environ- GmbH & Co. oHG 33.3 564 — SKB SFR 55.8 70 70 Security for Forsmarks Kraftgrupp AB and Ringhals AB will
ment in and around the Swedish hydropower plants. In order to Kernkraftwerk Brokdorf SKB Transport 55.8 370 370 increase by SEK 2,7 billion in total during 2026. See Note 28,
safeguard the fund’s ability to finance environmental measures GmbH & Co. oHG 20.0 13,091 — SKB CLAB 55.8 370 370 Contingent liabilities, in the parent company for more informa-
in Swedish hydro power in the long term, the owners decided Ågesta 100.0 — — tion on guarantee commitments.
in April 2024, to carry out a review of the fund’s general terms Commitments related to Swedish nuclear power Vattenfall Group’s contingent liability for nuclear waste con-
and conditions and to pause the possibility to submitting new (excluding nuclear waste) sists of collateral issued minus the provision made for future
applications to the fund during the review. The fund’s owners Vattenfall AB, in its capacity as an owner of nuclear facilities, has
Liability for Nuclear Third Party Liability (NTPL) in Sweden is commitments for nuclear power in Sweden plus Vattenfall’s
decided, in October 2024, to pause the handling of payments issued PCG as supplementary security to fulfil the compensa-
strict and unlimited. Under the Swedish Act (2010:950) on shares in the Swedish Nuclear Waste Fund.
to existing projects, the pause is still ongoing. tion obligations under the Swedish Nuclear Liability Act (LRO).
Liability and Compensation for Radiological Accidents (LRO), The PCG relate to previous calendar years during which the
the owner of a nuclear reactor must maintain insurance or other Commitments related to wind power
Commitments related to German nuclear power insurance market was unable to cover the insurance amount
financial security amounting to EUR 1,200 million. For other Commitments related to wind power consist mainly of guaran-
In Germany, nuclear power operators have strict and unlimited required under the LRO, and they remain valid for the 30-year
nuclear facilities, the required amount is EUR 700 million. tees issued to contractors, guarantees issued in connection
liability to third parties. By law, nuclear power plants are required period during which they may be called upon in accordance
For the facilities in Ågesta, SKB and Svafo, an exemption with project sales and future responsibility for restoring land in
to have insurance or other financial guarantees for amounts up with the LRO.
applied for the years 2022–2024, which meant that they were connection with wind power investments. For more information,
to EUR 2,500 million. Claims of up to EUR 256 million are cov- Previously issued PCG remain valid for any damages that may
only required to provide security of EUR 370 million. Vattenfall see “Contractor guarantees” and “Other commitments for wind
ered by the German Mutual Atomic Energy Reinsurance Pool. have occurred during the respective calendar years to which the
had previously issued the full security for Ågesta in the form of power” in the parent company’s Note 28, Contingent liabilities.
The nuclear power plants and their German parent companies guarantees relate. As of 31 December 2025, Vattenfall AB’s out-
a Parent Company Guarantee (PCG), but as of 24 September standing guarantee commitments amount to:
Vattenfall Annual and Sustainability Report 2025 189
Financial information / Consolidated notes
Note 39 Contingent liabilities, cont. Note 40 Collateral Note 42 Related party disclosures Note 43 Events after the
balance sheet date
Other commitments 2025 2024 Vattenfall AB is 100%-owned by the Swedish state. The
As a consequence of the Group’s continuing business activities, Vattenfall Group’s products and services are offered to the state, No events have occurred after the balance sheet date that
companies in the Group become parties to legal processes. In Shares in subsidiaries pledged to state authorities and state companies in competition with other
PRI Pensionsgaranti, as security for are expected to have a significant impact on the consolidated
addition, disputes arise in the Group’s operations that do not credit insurance in respect of pension
vendors under generally accepted commercial terms. In a simi- financial statements.
lead to legal processes. Vattenfall’s management assesses obligations in the Swedish operations 7,295 7,295 lar manner, Vattenfall AB and its Group companies purchase
these legal processes and disputes on a regular basis and Blocked bank funds as security for products and services from state authorities and state compa-
recognise provisions in cases where the criterias are fulfilled, trading on the Nordic electricity nies at market prices and otherwise under generally accepted
refer to Note 34, Interest-bearing provisions. In 2025, Vattenfall exchange and trading with commercial terms. Under an agreement with the Swedish
was not party to any legal actions, concerning alleged anti- CO2 emission allowances 1,136 4,473 Maritime Administration (Sjöfartsverket), Vattenfall is obliged
competitive behaviour or incidents of bribery or corruption. Total 8,431 11,768 to cover certain costs in and around Lake Vänern and the
For legal processes or disputes that do not meet the criteria for Göta River, including erosion protection, dredging, and dam
being recognised as a provision, management makes the overall In addition to the collateral mentioned above, Vattenfall has construction. No significant share of the Vattenfall Group’s net
assessment that there is no risk for material impact on the margin receivables and liabilities, refer to Note 20, Margin sales, purchasing or earnings is attributable to the Swedish
Group’s financial result or financial position. receivables and liabilities for more information. state or any of its authorities or companies.
In the Netherlands, a mass claim has been initiated against Disclosures of transactions with key persons in executive
several energy companies, including Vattenfall. The claim con- positions in the company are shown in Note 11, Number of
cerns compensation for allegedly unlawful price increases. employees and personnel costs.
Vattenfall, like the other energy companies involved, disputes Disclosures of transactions with associated companies and
the claim. Based on the information currently available, Vattenfall joint arrangements in 2025 and associated receivables and
assesses that it is not likely that a significant outflow of com- Note 41 Auditors’ fees liabilities as of 31 December 2025 are described below.
pensation will be required to settle the claim.
Svafo (a partly owned subsidiary of the Vattenfall Group) is in ÖPwC Associated companies Joint ventures
2025 2024 2025 2024 2025 2024
dialogue with the state regarding the responsibility for certain
categories of historical non-nuclear radioactive waste, about Audit assignment 60 52 Income 65 82 335 157
which the parties have different views. Vattenfall has reported Audit-related assignments 16 14 Expenses 161 5 104 11
a provision for nuclear radioactive waste, which is the waste for Receivables 128 620 953 4,011
Tax advisory services 1 1
which Svafo consider itself to have a commitment.
Other services 12 5 Liabilities 659 494 59 2,353
As a policyholder in the mutual insurance companies ELINI
(European Liability Insurance for the Nuclear Industry) and Total 89 72
EMANI (European Mutual Association for Nuclear Insurance),
Vattenfall’s Swedish nuclear power plants in Forsmark and The audit assignment comprises the statutory audit of the
Ringhals, as well as Svafo and SKB, have commitments to cover annual report, the accounting records, and the administration by
any potential deficits in the insurance funds of these insurers. the Board of Directors and the CEO, as well as other duties
As part of the Group’s business activities, in addition to the required of the company’s auditor. Audit-related assignments
contingent liabilities stated here, guarantees are made for the mainly include the review of sustainability reporting, the limited
fulfilment of various contractual obligations. In addition, custom- review of the interim report and other audit-related assignments.
ary guarantees and commitments are issued when divesting Other services refer to non-recurring assignments. Of the total
group companies and operations. fee for the audit assignment, SEK 17 million (15) was invoiced by
In addition Vattenfall has commitments related to PRI and Öhrlings PricewaterhouseCoopers AB in Sweden for the statu-
contingent liabilities related to eSett Oy, Forsmark, Ringhals and tory audit. Of the other fees, SEK 23 million (2) was invoiced by
Nord Pool Spot A/S. Öhrlings PricewaterhouseCoopers AB in Sweden, the statutory
auditor of Vattenfall AB (publ.), and mainly relates to non-recur-
ring services.
Vattenfall Annual and Sustainability Report 2025 190
Financial information / Parent company administration report
Parent company Vattenfall AB, administration report
Vattenfall AB with corporate identity number 556036-2138, is Financing strategy • The financial net amounted to SEK 2,660 million (–4,431). Environment
the parent company of the Vattenfall Group and is headquar- Vattenfall’s financing strategy builds on our financial targets, set The increase is primarily explained by a stronger SEK against Information regarding the company’s activities within Environ-
tered in Solna, Sweden. Vattenfall AB is a non-listed company by the owner. The capital structure of Vattenfall is managed by EUR and GBP compared to the same period last year. ment are described in Group activities in Vattenfall’s Annual and
and 100% owned by the Swedish state. Vattenfall AB has issued a targeted interval ≥ 25% for Adjusted FFO/Adjusted net debt. • Profit for the period is SEK 9,203 million (39,257). Sustainability Report.
listed bonds on Nasdaq Stockholm and the London Stock Return on capital employed (ROCE), excluding items affecting
• The balance sheet total amounts to SEK 312,038 million
Exchange. The company’s business is integrated with the busi- comparability, has a target range of ≥8%. The target interval Foreign Branches
ness of Vattenfall Group and therefore the administration report (342,985).
should ensure a reasonable financial risk and access to the Vattenfall AB Filial Norge NUF, corporate identity number
sometimes refers to the information for Group with additional funding necessary to deliver on Vattenfall’s strategic plan. • Investments during the period amounted to SEK 5,732 million 979975554, offers B2B solutions to the Norwegian market.
description of the operating segments included in the Parent All external borrowing is done at corporate level with bonds (4,220).
Company. issued by the parent company, Vattenfall AB. Vattenfall finances • Dividend paid to the owner of SEK 7,000 million (4,000). Events after the balance sheet date
its operations and investments through a combination of its No events have occurred after the balance sheet date with
• Cash and cash equivalents, and short-term investments
Vattenfall AB:s main business activities own generated cash flow and external funding, mainly in the a material impact on Vattenfall AB’s financial statements.
amounted to SEK 50,192 million (77,420).
• Customers & Solutions is responsible for sales of electricity, form of corporate bonds. Senior bonds are issued under a Euro
gas and energy services as well as e-mobility charging solu- Medium Term Note programme (EUR 10 billion). For short-term Proposed distribution of profits
Risk management
tions for both private and business customers in Sweden, funding, Vattenfall has a European Commercial Paper pro- The Annual General Meeting as at its disposal retained profits
Vattenfall’s overall risks and risk management are described in
Finland and Norway. The business aims to be the transition gramme (EUR 10 billion). In addition, Vattenfall has access to including the result for the year, totalling SEK 139,372,199,311.
the Group section of the Annual and Sustainability Report.
partner for customers and a decarbonisation trailblazer. a Revolving Credit Facility of EUR 2 billion maturing in 2028 In accordance with the dividend policy adopted by the Annual
Customers & Solutions includes a heating business that and a Revolving Credit Facility of EUR 1 billion maturing in 2027, General Meeting of Vattenfall AB, the Board of Directors pro-
Internal control
is responsible for district heating and decentralised heating which serves as general liquidity back-ups and ensures financial pose, in view of the result for the year, that the profits to be
Vattenfall has an internal financial control (IFC) process with the
solutions in Sweden. flexibility. Vattenfall’s long term credit ratings are BBB+ positive distributed as follows:
overall purpose to ensure Vattenfall Group has internal controls
outlook by S&P and A3 stable outlook by Moody’s.
• Generation is responsible for Vattenfall’s nuclear and hydro in place to provide reasonable assurance that risks of material
power operations and the part belonging to Vattenfall AB misstatements in the financial statements are mitigated. The To be distributed to the shareholder 8,000,000,000
Market development
offers different services such as technical, maintenance and IFC process also covers Vattenfall AB.
Refer to the section Vattenfall Financial Development in this To be carried forward 131,372,199,311
project management services to the BA Generation business
Annual and Sustainability Report. Total139,372,199,311
in Sweden. Research and Development
• Markets is managing physical trade of electricity to and from Main information regarding the company’s activities for
Year in brief The Board of Directors statement
the trading platforms on behalf of several business areas Research and Development is described in Group activities in
• Net sales amounted to SEK 47,189 million (47,481). The slightly Vattenfall AB’s Annual and Sustainability Report. Examples of on the proposed distribution
within Vattenfall Group. Markets are also responsible for exe- The company’s and the Group’s financial position is assessed
lower net sales are mainly explained by the development in Research and Development activities within Vattenfall AB are
cuting Vattenfall’s hedging strategy and managing financial as solid. The Board further considers that the proposed divi-
electricity prices. related to Business Area Wind but also to development within
risks by entering into commodity derivatives on behalf of dend is justifiable taking into account requirements of the com-
another business area within Vattenfall Group. Markets offers • Costs of purchases amounted to SEK –30,454 million the Environmental department.
(–17,930). SEK 11,940 million of the change is explained by a pany’s and the Group’s operations and related risks place on the
access to the physical and financial trading markets to larger size of the equity as well as the company’s and the Group’s con-
clients as well as managing ancillary trading. decreased unrealised market value for energy derivates for Sustainability report
future energy production. Vattenfall prepares the Sustainability Report according to the solidation needs, liquidity and position in general. The company
• Treasury is the internal bank and is responsible for borrowing, Swedish Årsredovisningslagen 6 kap 11§ and includes Vattenfall and the Group are also deemed to be able to fulfil their obliga-
liquidity management and management of associated finan- • Result from participations in subsidiaries amounted to SEK tions both in the short and long term. The proposed dividend
AB and the subsidiaries within the Group.
cial risks within Vattenfall Group. 4,441 million (29,171) of which SEK 7,809 million relates to divi- distribution can therefore be justified pursuant to Chapter 17,
dends from subsidiaries in Germany. This was partly offset by Sections 3.2 and 3.3, of the Swedish Companies Act (the pre-
• Staff functions, consist of several corporate support function Health and Safety
impairments of shares, mainly relating to Vattenfall Vindkraft cautionary principle).
for Vattenfall Group such as IT, Strategy, Accounting, Insur- Information regarding the company’s activities within Health and
AB. The impairments are related to onshore wind assets in
ance, Risk management, Controlling and Investor Relations. Safety are described in Group activities in Vattenfall’s Annual
Sweden and were mainly driven by deteriorating outlook for
and Sustainability Report.
electricity prices.
Vattenfall Annual and Sustainability Report 2025 191
Financial information / Parent company accounts
Parent company income statement
Amounts in SEK million Note 2025 2024
Net sales 5 47,189 47,481
Cost of purchases1 6 –30,454 –17,930
Other external expenses1 –4,403 –4,829
Personnel expenses 7 –3,317 –3,410
Other operating incomes 105 230
Other operating expenses –75 –153
Operating profit before depreciation, amortisation and impairment losses (EBITDA) 19, 31 9,045 21,389
Depreciation, amortisation and impairments 12, 13 –827 –797
Operating profit (EBIT) 8,218 20,592
Result from participations in subsidiaries 22 4,441 29,171
Result from participations in associated companies 23 — 1
Result from other shares and participations — –108
Other financial income 24 6,817 5,407
Other financial expenses 25 –4,157 –9,838
Profit before appropriations and income taxes 15,319 45,225
Appropriations 26 –4,676 –3,275
Profit before income taxes 10,643 41,950
Income taxes 8 –1,440 –2,693
Profit for the year 9,203 39,257
1. Cost related to nuclear power have been reclassified from Cost of purchases to Other external expenses, the comparable amounts have been updated.
Parent company statement of comprehensive income
Amounts in SEK million 2025 2024
Profit for the year 9,203 39,257
Total other comprehensive income — —
Total comprehensive income for the year 9,203 39,257
Vattenfall Annual and Sustainability Report 2025 192
Financial information / Parent company accounts
Parent company balance sheet
Amounts in SEK million Note 31 December 2025 31 December 2024 Amounts in SEK million Note 31 December 2025 31 December 2024
Assets Equity, provisions and liabilities
Non-current assets Equity
Intangible assets: non-current 13 1,483 715
Restricted equity
Property, plant and equipment 12 7,453 7,436
Share capital (131,700,000 shares with a share quota value of SEK 50) 6,585 6,585
Shares and participations 14 165,711 165,724
Other reserves1 1,101 586
Deferred tax assets 8 638 —
Other non-current receivables 9 1,844 3,244 Non-restricted equity
Other non-current receivables, group 9 66,653 65,833 Retained earnings1 130,169 98,427
Total non-current assets 243,782 242,952 Profit for the year 9,203 39,257
Total equity 147,058 144,855
Current assets
Inventories 580 568 Untaxed reserves 26 9,583 6,483
Intangible assets: current 1 — Provisions 20 7,662 9,591
Current receivables 10 8,846 12,716
Non-current liabilities
Current receivables, group 10 8,637 8,922
Hybrid capital 17 20,539 21,880
Current tax assets 8 — 407
Other interest-bearing liabilities 17 23,593 37,479
Short-term investments 15 39,478 51,994
Other interest-bearing liabilities, group 17 224 226
Cash and cash equivalents 16 10,714 25,426
Deferred tax liabilities 8 — 13
Total current assets 68,256 100,033
Other non interest-bearing liabilities 18 320 314
Total assets 312,038 342,985
Total non-current liabilities 44,676 59,912
Current liabilities
Other interest-bearing liabilities 17 10,934 15,093
Other interest-bearing liabilities, group 17 71,012 82,253
Current tax liabilities 8 755 1
Other non interest-bearing liabilities 11 4,946 8,289
Other non interest-bearing liabilities, group 11 15,412 16,508
Total current liabilities 103,059 122,144
Total equity, provisions and liabilities 312,038 342,985
1. For further information see the chapter for Equity.
Vattenfall Annual and Sustainability Report 2025 193
Financial information / Parent company accounts
Parent company cash flow statement Parent company statement of changes in equity
Amounts in SEK million Note 2025 2024 Amounts in SEK million Share capital Fund for development cost Non-restricted equity Total
Operating activities Balance brought forward 2024 6,585 152 102,861 109,598
Operating profit before appropriations and income taxes 15,319 45,225 Dividend paid to owner — — –4,000 –4,000
Tax paid –991 –1,724 Fund for development costs — 434 –4341 —
Capital gains/losses –182 385 Profit for the year — — 39,257 39,257
Shares and participations from subsidiaries –8,468 –29,303 Balance carried forward 2024 6,585 586 137,684 144,855
Impairment 3,845 108
Interest cost which has effected the result but not been paid 89 –501 Dividend paid to owners — — –7,000 –7,000
Interest revenue which have effected the result but not been received –858 –927 Fund for development costs — 515 –5151 —
Derivates non-cash items 5,188 –4,038 Profit for the year — — 9,203 9,203
Other, incl. non-cash items 27 –6,390 3,936 Balance carried forward 2025 6,585 1,101 139,372 147,058
Funds from operations (FFO) 7,552 13,161 1. Pertains to the year’s capitalised costs less depreciation according to plan for own development work that have been reserved in
Changes in inventories –12 –55 the Fund for development costs.
Changes in operating receivables 3,985 5,777
As of 31 December 2025 the registered share capital comprised 131,700,000 shares with a share quota value of SEK 50.
Changes in operating liabilities –8,688 2,819
Changes in margin calls –426 –2,067
Cash flow from changes in operating assets and operating liabilities –5,141 6,474
Cash flow from operating activities 2,411 19,635
Investing activities
Contribution in subsidiaries –3,500 –3,048
Investments in subsidiaries and other shares and participations –842 —
Other investments in non-current assets –1,390 –1,172
Total investments –5,732 –4,220
Divestments 449 —
Dividend received from subsidiaries 22 8,468 29,194
Changes in short-term investments 15 12,178 –28,232
Cash flow from investing activities 15,363 –3,258
Cash flow before financing activities 17,774 16,377
Financing activities
Loans raised 7,299 34,136
Amortisation of other debts –28,813 –45,005
Dividend paid to owner –7,000 –4,000
Loan to subsidiaries –3,742 –25
Amortisation received from subsidiaries 1,395 512
Group contributions received 69 207
Group contributions paid –1,694 –1,934
Cash flow from financing activities –32,486 –16,109
Cash flow for the year –14,712 268
Cash and cash equivalents
Cash and cash equivalents at start of year 25,426 25,158
Exchange rate difference in cash and cash equivalents –2,912 –17
Cash flow for the year –11,800 285
Cash and cash equivalents at end of year 10,714 25,426
Vattenfall Annual and Sustainability Report 2025 194
Financial information / Parent company notes
Note 1 Company information Note 3 Accounting policies, cont Note 4 Exchange rates
Vattenfall AB (publ) with registration number 556036–2138, is the consolidated accounts for a description of these) with the When capitalised amounts are amortised, the corresponding Refer to Note 5 to the consolidated accounts, Exchange rates.
the parent company in Vattenfall Group with registered office at exception of the deviations presented below or in the respective amount is transferred from the reserve for capitalised develop-
Evenemangsgatan 13 in Solna, Sweden. Vattenfall AB’s shares note. ment expenses to unrestricted equity.
are unlisted and 100% owned by the Swedish state. Vattenfall Amounts are stated in SEK million unless otherwise stated.
AB has listed bonds issued on Nasdaq Stockholm and the Rounding differences may occur. Dividends
London Stock Exchange. The Group mainly produces, distrib- Dividends from a subsidiary are recognised in the parent com-
Note 5 Net sales
utes and sells electricity and heat. The Annual Report for New accounting policies 2025 pany in connection with the subsidiary’s Annual General Meet-
Vattenfall AB for the financial year ending 31 December 2025 No changes in accounting standards and interpretations have ing. In some cases, the parent company may recognise an Net sales per geographical area
2025 2024
was approved for issue in accordance with the decision of the had any material impact on the parent company’s financial expected dividend before the AGM, an anticipated dividend. A
Board and the CEO on 19 March 2026. The balance sheet and statements. prerequisite is that the subsidiary fulfils all legal requirements for Sweden 40,568 40,932
income statement of the parent company included in paying the dividend and that the parent company controls more Finland 2,618 2,194
Vattenfall’s Annual and Sustainability Report will be submitted Financial instruments than 50% of the votes in the subsidiary. Germany 2,177 2,389
at the Annual General Meeting (AGM) on 28th of April 2026. Refer to Note 30, Financial instruments, in the consolidated Norway 802 723
financial statements for the accounting principles and financial Key accounting estimates and judgements Denmark 326 386
risk management that also applies to the parent company. Preparing the financial statements requires management and
Netherlands 486 577
Unlike the Group, the parent company does not apply hedge the Board of Directors to make estimates, judgements, and
Note 2 Proposed distribution of profits accounting. This means that unrealised changes in the fair value assumptions that affect the application of accounting policies
Other countries 212 280
Total 47,189 47,481
of derivative instruments are recognised in the income state- and the reported amounts of assets, liabilities, income, and
The Annual General Meeting as at its disposal retained profits ment of the parent company. expenses. These estimates and judgements are based on his-
including the result for the year, totalling SEK 139,372,199,311. torical experience and other reasonable factors. The outcome of Net sales for products and services
2025 2024
In accordance with the dividend policy adopted by the Annual Leasing these estimates and assessments is then used to determine
General Meeting of Vattenfall AB, the Board of Directors pro- Due to the connection between accounting and taxation, RFR 2 the carrying amounts of assets and liabilities that are not other- Sales of electricity 34,415 37,612
pose, in view of the result for the year, that the profits to be include an exception regarding IFRS 16 that the parent company wise readily apparent from other sources. Actual outcomes may Sales of heat and steam 2,597 2,531
distributed as follows: applies. The exception allows all lease contracts to be recorded differ from these estimates. Estimates and judgements are Sales of gas 683 151
as operating leases when the parent company is the lessee. reviewed regularly. Service and consulting 1,038 986
To be distributed to the shareholder 8,000,000,000 Important estimates and judgements for the parent company Total Revenues from
To be carried forward 131,372,199,311 Appropriations and untaxed reserves are further described in the following notes: contracts with customers 38,733 41,280
Total 139,372,199,311 Vattenfall AB recognises Group contributions in accordance
with the alternative rule, meaning that all Group contributions, Key accounting estimates Ancillary services revenues 3,505 1,813
and judgements Note Revenues within Group 3,989 3,728
For more information see parent company statement of both paid and received, are reported as appropriations.
Estimation uncertainty related 14, Shares and participations, Other Revenues 962 660
changes in equity and the administration report. Depreciation is reported on a straight-line basis over the esti-
to impairment testing parent company
mated useful lives of the assets, in the same way as for the 27, Impairments and reversed Total 47,189 47,481
Group. In addition, the parent company reports depreciation in impairments, consolidated
excess of the plan (the difference between depreciation accord- accounts Contract balances
ing to plan and corresponding tax depreciation), which is recog- Assumptions used to 20, Provisions, parent company 2025 2024
Note 3 Accounting policies nised as appropriations and untaxed reserves. estimate expenses for 34, Interest-bearing provisions, Contract liabilities 277 281
Tax legislation in Sweden allows companies to defer tax pay- future commitments for consolidated accounts
nuclear power operations – of which, released as revenue from
General ments by allocating funds to untaxed reserves. In the parent opening balance during the year –16 –16
Vattenfall AB has prepared its financial statements in accord- company, untaxed reserves are recognised as a separate item Assumptions used to calculate 20, Provisions, parent company
ance with the Swedish Annual Accounts Act and RFR 2 in the balance sheet, which includes deferred tax. Provisions for future pension obligations
Of the parent company’s total income from sales transactions
– “Accounting for legal entities”. and reversals of untaxed reserves are recognised as Appropria-
with subsidiaries account for 35% (27%).
According to RFR 2, parent companies, whose financial state- tions in the parent company’s income statement.
ments for the group comply with International Financial Report-
ing Standards (IFRS) as adopted by the EU, shall apply IFRS to Reserve for capitalised development expenses
the extent possible within the framework of the “Annual For capitalised expenditure related to own development pro-
Accounts Act”, and with regard to the connection between jects, the corresponding amount is transferred from unrestricted
accounting and taxation. The parent company therefore follows equity to the reserve for capitalised development expenses.
the same accounting principles as the Group (see the notes to
Vattenfall Annual and Sustainability Report 2025 195
Financial information / Parent company notes
Note 6 Cost of purchases Note 8 Income taxes
2025 2024 Breakdown of income tax
2025 2024
Electricity commodities 21,170 22,280
Unrealised fair value changes of derivatives accounted for at fair value 5,188 –6,753 Current tax –2,091 –807
Electricity grid cost 1,389 523 Deferred tax 651 –1,886
Emission allowances 843 458 Total –1,440 –2,693
Gas purchases 690 152
Other fuel purchases (coal, oil and biofuel) 1,145 1,363 The difference between the nominal Swedish tax rate and the effective tax rate
Other 29 –93 2025 2024
Total1 30,454 17,930 % MSEK % MSEK
1. Costs related to nuclear power have been reclassified from Cost of purchases to Other external expenses, the comparable amounts have been updated. Profit before tax 10,643 41,950
Swedish income tax rate at 31 December 20.6 –2,192 20.6 –8,642
Of the parent company’s total purchase costs, transactions with subsidiaries account for 62% (78%) of purchase costs. Current tax adjustment attributable to previous years 0.4 –44 0.1 –40
Dividend, non-taxable –16.4 1,744 –14.3 6,014
Non-taxable income 0.0 1 0.0 2
Impairment losses, non-deductible 8.3 –888 0.1 –38
Interest expense, non-deductible 0.1 –14 0.0 –18
Note 7 Average number of employees and personnel costs Other non-deductible expenses 0.4 –47 0.0 –11
Effect of interest rate limitation 0.0 — –0.1 40
Average number of employees Effective tax rate in Sweden 13.4 –1,440 6.4 –2,693
2025 2024
Men Women Non-binary Total Men Women Total
Sweden 1,553 918 1 2,472 1,506 885 2,391
Breakdown of deferred tax
Balance brought Changes via income Balance carried
Vattenfall reports non-binary from 1 January 2025. forward statement forward
2025 2024 2025 2024 2025 2024
Personnel costs Non-current assets 20 2 –3 18 17 20
2025 2024
Current assets –1,253 –965 299 –288 –954 –1,253
Salaries and other remuneration 2,153 2,026 Provisions 84 86 — –2 84 84
Social security expenses 1,164 1,384 Other non-current liabilities 1,222 1,291 –359 –69 863 1,222
– of which pension costs1 385 606 Current liabilities –86 1,459 714 –1,545 628 –86
Total 3,317 3,410 Total –13 1,873 651 –1,886 638 –13
1. SEK 6 million (5) of the pension costs are attributable to Chief Executive Officer. The company’s outstanding pension obligations to these employees There are no tax deficit in the parent company.
amount to SEK 0 million (0).
None of the board members receive any pension benefits in connection with their board duties.
Salaries and other remuneration
2025 2024
Senior Other Senior Other
executives employees Total executives employees Total
Sweden 69 2,084 2,153 67 1,959 2,026
Total salaries and other remuneration to board members and Presidents include bonuses of SEK 0 million (0). For benefits to senior
executives at Vattenfall AB, refer to Note 11 to the consolidated accounts, Number of employees and personnel costs.
Vattenfall Annual and Sustainability Report 2025 196
Financial information / Parent company notes
Note 9 Other non-current receivables
2025 2024
Receivables Receivables
Receivables from from associated Derivative Other Receivables from from associated Derivative Other
subsidiaries companies assets receivables Total subsidiaries companies assets receivables Total
Balance brought forward 65,486 346 3,088 157 69,077 70,372 323 3,236 217 74,148
New receivables 3,742 133 — –224 3,651 4,050 25 — 106 4,181
Payments received –1,395 — — –57 –1,452 –9,711 — — –92 –9,803
Foreign exchange gains/losses –1,194 –23 — — –1,217 775 10 — 2 787
Derivative changes 146 — –8011 — –655 — — –1481 — –148
Other changes –132 –456 — –319 –907 — –12 — –76 –88
Balance carried forward 66,653 — 2,287 –443 68,497 65,486 346 3,088 157 69,077
1. Net change and measurement at fair value.
Note 10 Current receivables Note 11 Other noninterest-bearing liabilities (current)
2025 2024 2025 2024
Advance payments paid 153 154 Accounts payable – trade 794 1,064
Accounts receivable – trade 2,493 2,490 Liabilities to subsidiaries 15,049 16,508
Receivables from subsidiaries 8,410 8,921 Liabilities to associate 363 —
Other receivables 651 3,245 Other liabilities 416 592
Derivative assets 2,482 3,103 Derivatives debts 1,327 60
Derivative assets from subsidiaries 227 1 Accrued expenses and deferred income 2,409 6,573
Prepaid expenses and accrued income 3,067 3,724 Total 20,358 24,797
Total 17,483 21,638
Breakdown of accrued expenses and deferred income
2025 2024
Accrued personnel-related costs 479 519
Age analysis of current receivables
Accrued interest expenses 905 1,054
The collection period is normally 30 days.
2025 2024 Other accrued expenses 658 4,613
Receivables Impaired Receivables Receivables Impaired Receivables Deferred income and accrued expenses, electricity 338 357
gross receivables net gross receivables net
Other deferred income 29 30
Accounts receivable – trade Total 2,409 6,573
Not due 2,240 — 2,240 2,198 — 2,198
Past due 1–30 days 211 — 211 257 — 257
Past due 31–90 days 23 — 23 18 — 18
Past due >90 days 38 –19 19 29 –12 17
Total 2,512 –19 2,493 2,502 –12 2,490
Receivables from subsidiaries, Receivables from associated companies, and Other receivables include no receivables that are due for
payment.
Vattenfall Annual and Sustainability Report 2025 197
Financial information / Parent company notes
Note 12 Property, plant and equipment
2025 2024
Plant and Plant and
machinery machinery
and other Equipment, and other Equipment,
Land and technical tools, fixtures Construction Land and technical tools, fixtures Construction
buildings installations and fittings in progress Total buildings installations and fittings in progress Total
Cost Cost
Cost brought forward 1,938 12,637 1,376 698 16,649 Cost brought forward 1,908 12,373 1,193 358 15,832
Investments — –1 176 582 757 Investments — — 220 663 883
Transfer from construction in progress 57 671 56 –808 –24 Transfer from construction in progress 36 221 66 –323 —
Divestments/disposals –6 –140 –182 — –328 Divestments/disposals –6 43 –103 — –66
Accumulated cost carried forward 1,989 13,167 1,426 472 17,054 Accumulated cost carried forward 1,938 12,637 1,376 698 16,649
Depreciation according to plan Depreciation according to plan
Depreciation brought forward –943 –7,470 –797 — –9,210 Depreciation brought forward –909 –7,014 –691 — –8,614
Depreciation for the year –42 –417 –240 — –699 Depreciation for the year –40 –407 –209 — –656
Divestments/disposals 4 125 182 — 311 Divestments/disposals 6 –49 103 — 60
Accumulated depreciation according to plan carried forward –981 –7,762 –855 — –9,598 Accumulated depreciation according to plan carried forward –943 –7,470 –797 — –9,210
Impairment losses Impairment losses
Impairment losses brought forward –1 –2 — — –3 Impairment losses brought forward –1 –2 — — –3
Accumulated impairment losses carried forward –1 –2 — — –3 Accumulated impairment losses carried forward –1 –2 — — –3
Residual value according to plan carried forward 1,007 5,403 571 472 7,453 Residual value according to plan carried forward 994 5,165 579 698 7,436
Accumulated accelerated depreciation — –4,333 — — –4,333 Accumulated accelerated depreciation — –3,733 — — –3,733
Carrying amount 1,007 1,070 571 472 3,120 Carrying amount 994 1,432 579 698 3,703
Estimated useful life
Plant and machinery for heat 5–50 years
Buildings 15–100 years
Equipment 3–10 years
At 31 December 2025 there were no contractual commitments
for the acquisition of property, plant and equipment.
Vattenfall Annual and Sustainability Report 2025 198
Financial information / Parent company notes
Note 13 Intangible assets: non-current Note 14 Shares and participations
2025
Accounting policy Participations in associated companies
Concessions and
Capitalised similar rights and cost Shares in subsidiaries Participations in associated companies are measured at cost.
development costs to obtain a contract Total Shares in subsidiaries are measured at cost based on the Dividends received are reported in the income statement. The
exchange rate at the acquisition date. In accordance with RFR 2, carrying amount is tested at least annually for any impairment.
Cost
the parent company includes costs related to acquisition of a
Cost brought forward 1,216 1,230 2,446
business in the acquisition value. Dividends received are recog- Key accounting estimates and judgements
Investments 527 347 874 nised in the income statement. Estimation uncertainty related to impairment testing
Reclassifications 21 — 21 The carrying amounts of shares in subsidiaries are continu- The recoverable amount is determined based on the Group’s
Accumulated cost carried forward 1,764 1,577 3,341 ously assessed for indications of impairment. An impairment is annual impairment testing of relevant cash-generating units.
Amortisation according to plan recognised when the carrying amount exceeds the recoverable For key estimates and judgements applied in these calculations,
amount. Significant holdings are subject to an annual impair- refer to Note 27, Impairments and reversed impairments, to the
Amortisation brought forward –443 –1,171 –1,614
ment test, while other holdings undergo an annual review to consolidated accounts. These amounts are subsequently
Amortisation for the year –62 –66 –128
identify potential indicators of a decline in value, based on per- adjusted for each subsidiary’s net debt and any non-controlling
Accumulated amortisation according to plan carried forward –505 –1,237 –1,742 formance, equity and other relevant factors. Where such indica- interests to establish a comparable equity value for the parent
Impairment losses tions are identified, a full impairment test is performed using the company.
Impairment losses brought forward –116 — –116 same methodology as for significant holdings. Impairment
Accumulated impairment losses carried forward –116 — –116 losses are recognised in the income statement under “Result
from shares in subsidiaries”.
Residual value according to plan carried forward 1,143 340 1,483
2024 Shares and participations
Concessions and 2025
Capitalised similar rights and cost Participations Other
development costs to obtain a contract Total Shares in in associated shares and
subsidiaries companies participations Total
Cost
Cost brought forward 775 1,350 2,125 Balance brought forward 165,149 557 18 165,724
Investments 441 56 497 Investments 312 — — 312
Divestments/disposals — –177 –177 Shareholder contributions 3,500 — — 3,500
Accumulated cost carried forward 1,216 1,229 2,445 New share issue 529 — — 529
Divestments –509 — — –509
Amortisation according to plan
Impairment losses –3,845 — — –3,845
Amortisation brought forward –379 –1,272 –1,651
Balance carried forward 165,136 557 18 165,711
Amortisation for the year –64 –76 –140
Reclassifications — 177 177 2024
Accumulated amortisation according to plan carried forward –443 –1,171 –1,614 Participations Other
Shares in in associated shares and
Impairment losses subsidiaries companies participations Total
Impairment losses brought forward –116 — –116
Balance brought forward 156,627 557 126 157,310
Accumulated impairment losses carried forward –116 — –116
Shareholder contributions 8,901 — — 8,901
Residual value according to plan carried forward 657 58 715
Divestments –178 — — –178
Liquidation –201 — — –201
Impairment losses — — –108 –108
Balance carried forward 165,149 557 18 165,724
Estimated useful life
At 31 December 2025 there were no contractual commitments For a breakdown of the parent company’s shares and participations in subsidiaries, associated companies and other shares and par-
Development costs 3–4 years for acquisition of intangible non-current assets. ticipations, refer to Note 25, Participations in associated companies and joint ventures and Note 26, Shares and participations, to the
Concessions and similar rights 3–30 years consolidated accounts.
Costs to obtain a contract 1–6 years
Vattenfall Annual and Sustainability Report 2025 199
Financial information / Parent company notes
Note 14 Shares and participations, cont. Note 17 Interest-bearing liabilities
Non-current portion Non-current portion
Impairments 2025 Current portion maturity 1–5 years maturity >5 years Total
2025 2024 2025 2024 2025 2024 2025 2024
Impairments of shares in subsidiaries for the year amount to
SEK 3,845 million and mainly relate to shares in Vattenfall Bond issues 10,837 — 5,706 17,545 13,149 14,379 29,692 31,924
Vindkraft AB. The impairments are related to onshore wind Commercial paper and transactions of repo — 3,854 — — — — — 3,854
assets in Sweden and reflects deteriorating electricity price Liabilities to subsidiaries 71,012 82,288 224 226 — — 71,236 82,514
forecasts.
Derivative liabilities — 10,741 2,606 2,408 2,132 3,147 4,738 16,296
Other liabilities (margin liabilities within financing activities)1 97 463 — — — — 97 463
Total interest-bearing liabilities excluding Hybrid capital 81,946 97,346 8,536 20,179 15,281 17,526 105,763 135,051
Hybrid capital2 — — 20,539 21,880 — — 20,539 21,880
Total interest-bearing liabilities 81,946 97,346 29,075 42,059 15,281 17,526 126,302 156,931
1. With respect to pledged assets, see Note 29 to the parent company accounts, Collateral.
2. See Note 31 to the consolidated accounts, Interest-bearing liabilities and related financial derivatives, for further information on hybrid capital.
Note 15 Short-term investments
2025 2024 Note 18 Other noninterest-bearing
Fixed-income investments 37,448 50,099 liabilities (non-current) Note 20 Provisions
Margin receivables, financing activities1 2,030 1,895
Total 39,478 51,994 2025 2024 Accounting policy Provisions for future commitments for nuclear
Pension provisions power operations
1. With respect to pledged assets, refer to Note 29 to the parent company Contract debts 319 310
Within Vattenfall AB, there are several defined contribution and Nuclear power producers in Sweden (Ringhals and Forsmark)
accounts, Collateral. Other liabilities 1 4 defined benefit pension plans. have a legal obligation upon cessation of production to decom-
Total1 320 314 For defined contribution plans, Vattenfall AB pays fixed contri- mission and dismantle the nuclear power plants and to restore
1. Future commitments for nuclear power operations have been reclassi- butions to the relevant insurance companies. Once the premi- the site where the plants are located. Vattenfall’s obligation in
Note 16 Cash and cash equivalents fied from Other non-interest-bearing liabilities (long-term) to Provisions. ums have been paid, the company has fulfilled its obligation Sweden also encompasses the safeguarding and final storage
Comparative amounts have been updated. regarding pension benefits and has no further obligation to pay of radioactive waste. For more information regarding these
additional contributions if the plan’s assets are insufficient. obligations, see Note 34, Interest-bearing provisions, to the
2025 2024 Of other liabilities, SEK 1 million (4) falls due after more than five Expenses for defined contribution plans in Vattenfall AB are rec- consolidated accounts.
Cash and bank balances 6,893 20,921 years. ognised as pension costs in the income statement in the period Vattenfall AB recognises a provision for any potential deficit at
Cash equivalents 3,821 4,505 during which the pensionable services are rendered. Ringhals and Forsmark (any surplus is not recognised). The defi-
Defined benefit pension plans provide employees with a guar- cit consists of the difference between the estimated provision
Total 10,714 25,426
Note 19 Leasing anteed pension corresponding to a certain percentage of their amount and the assets in the Swedish Nuclear Waste Fund. The
salary. These plans are mainly funded through book-reserves provision for any potential deficit is recognised in Vattenfall AB
pensions, which are secured by credit insurance with PRI Pen- because the ultimate responsibility for financing the decommis-
Leasing expenses sionsgaranti insurance company, which also administers parts sioning costs for Ringhals and Forsmark lies with the ultimate
Future payment commitments, as of 31 December 2025 for of the plans. ITP2 is the main defined benefit pension plan. parent companies.
leasing contracts and rental contracts are broken down as Vattenfall AB’s defined benefit pension plans are accounted The parent company owns the Ågesta plant together with
follows: for in accordance with the simplified approach under RFR 2 Svafo. Ågesta is a nuclear facility that previously produced dis-
Operating and are calculated annually at the balance sheet date based trict heating in southern Stockholm. For dismantling, restoration,
leases
on actuarial assumptions. For pension plans covered by the and final disposal, Vattenfall has made a provision correspond-
2026 31 Swedish Pension Security Act (Tryggandelagen), the calculation ing to the estimated future expenses. These future expenses
2027–2030 35 of future obligations is performed in accordance with the provi- are financed on an ongoing basis through payments to the
2031 and beyond — sions of the Act. For other pension plans, the obligations are Swedish Nuclear Waste Fund.
Total 66 c alculated using actuarial principles.
Leasing expenses for the year amounted to SEK 25 million (249).
Vattenfall Annual and Sustainability Report 2025 200
Financial information / Parent company notes
Note 20 Provisions, cont. Note 21 Financial instruments by measurement category Note 24 Other financial income
Key accounting estimates and judgements The measurement categories for assets and liabilities below correspond to the categories described in Note 30 to the consolidated 2025 2024
Assumptions for estimating expenses for future nuclear accounts, Financial instruments.
Interest income from subsidiaries 2,418 2,658
obligations
See Note 34, Interest-bearing provisions, to the consolidated 2025 2024 Other interest income 1,839 2,646
Carrying Fair Carrying Fair Revenue margin calls, subsidiaries 41 103
accounts. amount value amount value
Foreign exchange gains and losses, net 2,519 —
Provisions Financial assets at fair value through profit or loss Total 6,817 5,407
2025 2024 Derivative assets 4,996 4,996 6,192 6,192
Pension provisions1, 2 5,067 5,113 Short-term investments 37,448 37,448 50,099 50,099
Personnel-related provisions Shares in the Swedish Nuclear Waste Fund 173 173 181 181 Note 25 Other financial expenses
for non-pension purposes 318 311 Cash equivalents 3,821 3,821 4,505 4,505
Provisions for environmental Total 46,438 46,438 60,977 60,977
measures/undertakings 1 3 2025 2024
Financial assets at amortised cost
Provisions for future commitments Interest expenses to subsidiaries 1,732 2,663
of nuclear operations3 1,546 3,468 Other non-current receivables 66,210 66,210 65,989 65,989
Other interest expenses 2,424 3,768
Provisions for legal dispute 730 696 Margin securities 2,030 2,030 1,895 1,895
Cost margin calls, subsidiaries 1 —
Total 7,662 9,591 Accounts receivables and other receivables 11,555 11,555 14,657 14,657
Foreign exchange gains and losses, net — 3,407
1. Of which, information registered Cash and bank balances 6,893 6,893 20,921 20,921
Total 4,157 9,838
by PRI 4,926 4,936 Total 86,688 86,688 103,462 103,462
2. Of which, covered by credit
Financial liabilities at fair value through profit or loss
insurance with FPG/PRI 5,088 4,966
3. Future commitments for nuclear power operations have been
Derivative liabilities 4,737 4,737 5,590 5,590 Note 26 Appropriations
reclassified from Other non-interest-bearing liabilities (long-term) Total 4,737 4,737 5,590 5,590 and untaxed reserves
to Provisions. Comparative amounts have been updated.
Financial liabilities at amortised cost
Hybrid Capital 20,539 20,805 21,880 21,842 Appropriations
Other interest-bearing liabilities 100,928 100,928 128,998 128,998 2025 2024
Margin securities 96 96 463 463 Group contributions paid –1,954 –1,684
Trade payables and other liabilities 16,622 16,622 18,164 18,164 Group contributions received 378 69
Total 138,185 138,451 169,505 169,467 Provision/Dissolution of untaxed
reserves, net –3,100 –1,660
Total –4,676 –3,275
Note 22 Result from participations Note 23 Result from participations Untaxed reserves
Balance Balance
in subsidiaries in associated companies brought Provision (+)/ carried
forward dissolution (–) forward
2025 2024 2025 2024 Accelerated depreciation –3,733 –600 –4,333
Tax allocation reserves for
Dividends 8,468 29,194 Dividends — 1 2024 tax years –1,750 0 –1,750
Impairment losses of shares –3,845 — Total — 1 2025 Fiscal year allocation
Capital gains/losses on divestments –182 –23 reserve –1,000 –2,500 –3,500
Total 4,441 29,171 Total –6,483 –3,100 –9,583
Vattenfall Annual and Sustainability Report 2025 201
Financial information / Parent company notes
Note 27 Specification of the
cash flow statement Note 28 Contingent liabilities
Guarantee commitments relating to: In December 2025, the Government decided that the guaran- security required under the LRO, the owners of nuclear compa-
Other, including non-cash items
2025 2024 tees related to the Financing Security will be increased further nies provide PCG as supplementary security.
2025 2024
during 2025. For Vattenfall, this means that the Financing As of 31 December 2025, all facilities have obtained NTPL
Swedish nuclear waste 47,630 42,253
Unrealised foreign exchange Security for Forsmarks Kraftgrupp AB and Ringhals AB will insurance coverage through NNI and ELINI.
gains/losses –5,123 3,262 Commitments related to Swedish
increase by SEK 2,7 billion in total during 2026.
Nuclear Power 6,565 6,952 31 December 2025
Changes in depreciation 843 809 This also includes AB Svafo. The Swedish state decided in
Contractor guarantees 61,125 52,914 Requested Of which
Changes in provisions –1,971 –96 November 2022 the amount for the period 2023–2025. The par-
Other commitments wind power 45,430 64,866 Vattenfall’s collateral insurance
Other –139 –39 ent company Vattenfall AB will make guarantee commitments share % 100%, MEUR cover, MEUR
Guarantees for energy trading 6,269 14,645 for the value of SEK 380 million (323).
Total –6,390 3,936
Other contingent liabilities 8,968 6,725 Refer to Note 33, Share in the Swedish Nuclear Waste Fund Ringhals 70.4 1,200 1,200
Total 175,987 188,355 and Note 34, Other interest-bearing provisions, to the consoli- Forsmark 66.0 1,200 1,200
Financial liabilities Svafo 53.6 70 70
dated accounts.
Current Non-current
Swedish nuclear waste SKB SFR 55.8 70 70
Financial liabilities at 1 January 2024 97,255 66,394 According to the Swedish Act (2006:647) on the Financing of Commitments Related to Swedish Nuclear Power SKB Transport 55.8 370 370
Cashflow –13,864 2,994 Nuclear Waste Products, a party that has a permit to conduct (excluding nuclear waste) SKB Clab 55.8 370 370
Non-cash effecting currency effects 2,876 2,925 nuclear engineering activities, such as Ringhals AB and Liability for Nuclear Third Party Liability (NTPL) in Sweden is Ågesta 100.0 — —
Other non-cash flow effecting items 11,078 –12,728 Forsmarks Kraftgrupp AB, is required to provide security to the strict and unlimited. Under the Swedish Act (2010:950) on
Swedish state as a guarantee that sufficient funds exist to cover Liability and Compensation for Radiological Accidents (LRO),
Financial liabilities Vattenfall AB, in its capacity as an owner of nuclear facilities, has
at 31 December 2024 97,345 59,585 the future costs of nuclear waste management. The security is the owner of a nuclear reactor must maintain insurance or other
issued PCG as supplementary security to fulfil the compensa-
provided in the form of guaranteed commitments from the own- financial security amounting to EUR 1,200 million. For other
Cashflow –25,640 0 tion obligations under the Swedish Nuclear Liability Act (LRO).
ers of the nuclear power companies. In a decision made on 19 nuclear facilities, the required amount is EUR 700 million.
Non-cash effecting currency effects –1,071 –3,562 The PCG relate to previous calendar years during which the
December 2024, the Swedish government set new guarantee For the facilities in Ågesta, SKB and Svafo, an exemption
insurance market was unable to cover the insurance amount
Other non-cash flow effecting items 11,312 –11,668 amounts for the year 2025. Following this decision, as security applied for the years 2022–2024, which meant that they were
required under the LRO, and they remain valid for the 30-year
Financial liabilities for the subsidiaries Forsmarks Kraftgrupp AB and Ringhals AB, only required to provide security of EUR 370 million. Vattenfall
period during which they may be called upon in accordance
at 31 December 2025 81,946 44,355 the parent company Vattenfall AB will make guarantee commit- had previously issued the full security for Ågesta in the form of
with the LRO.
ments for a combined value of SEK 47,249 million (41,750). a Parent Company Guarantee (PCG), but as of 24 September
Previously issued PCG remain valid for any damages that may
Two types of guarantees will be issued. The first guarantee 2024, no security under the LRO is required, following a decision
have occurred during the respective calendar years to which the
– so-called Financing Security, totalling SEK 13,592 million by the Swedish Radiation Safety Authority. In 2024, the Swedish
guarantees relate. As of 31 December 2025, Vattenfall AB’s out-
(12,066) – is intended to cover the current deficit of the Nuclear Government decided that Svafo and SKB’s facility for the reposi-
standing guarantee commitments amount to:
Waste Fund assuming no more nuclear waste fees are paid. tory for short lived radioactive waste (SFR) should be classified
This deficit is calculated as the difference between expected as low risk facilities. As a result, their required security only • Ringhals: EUR 93 million (70.4% of EUR 132 million), pertaining
costs and existing funds. The second guarantee – so-called needs to amount to EUR 70 million, which can be covered by to 2022.
Supplementary Security, totalling SEK 33,657 million (29,684) insurance. This decision applies until 5 December 2034. In • Forsmark: EUR 87 million (66.0% of EUR 132 million), pertain-
– pertains to potential future cost increases stemming from 2025, the Government further decided that SKB’s security ing to 2022.
unforeseen events. The amounts for both of these types of requirement for transport operations and the central interim
• Ågesta: EUR 208 million (100% of the required guarantees),
security have been determined based on a probability-based storage facility for spent nuclear fuel (Clab) shall not exceed
pertaining to 2022–2023.
risk analysis in which the former value amount has been deter- EUR 370 million. This decision applies until 25 September 2035.
Insurance covering NTPL is issued by Nordic Nuclear Insurers • AB Svafo: EUR 113 million (53.6% of EUR 211 million), pertaining
mined as such that there is a 50% probability that it, together
(NNI) and by the nuclear industry’s mutual insurance company to calendar years 2022–2024
with currently funded amounts (the median), will provide full cost
coverage for all waste produced to date. The later amount con- ELINI (European Liability Insurance for the Nuclear Industry). • SKB Transporter: EUR 106 million (55.8% of the required guar-
sists essentially of the supplement that would be required if the When the insurance market cannot cover the full amount of antees), pertaining to 2022–2025
corresponding probability was 90%.
Vattenfall Annual and Sustainability Report 2025 202
Financial information / Parent company notes
Note 28 Contingent liabilities, cont. Note 29 Collateral Note 32 Related party disclosures
The guarantees are issued on a pro rata basis, meaning that ership interest is 56%. Implementation of the efforts is being Vattenfall AB is 100%-owned by the Swedish state. The Vattenfall
Collateral and pledged assets
Vattenfall AB is liable only for its ownership share. For Ågesta, carried out across two periods: a period before all necessary Group’s products and services are offered to the state, state
2025 2024
Vattenfall AB is the license holder and therefore responsible for permits have been received (Period 1), and a period during authorities and state companies in competition with other ven-
the entire amount. No PCG have been issued for SKB SFR or implementation and operation of the facilities (Period 2). In 2025 Shares pledged to the Swedish dors under generally accepted commercial terms. In a similar
SKB Clab. Vattenfall reported a provision of SEK 415 million (414) for its insurance company PRI Pensions manner, Vattenfall AB purchases products and services from
share of Period 2 activities. garanti as security for credit insurance state authorities and state companies at market prices and oth-
for pension obligations in Vattenfall’s
Contract guarantees As a consequence of the Group’s continuing business activi- erwise under generally accepted commercial terms. No signifi-
Swedish operations1 7,295 7,295
As collateral for contractors’ obligations, Vattenfall AB has ties, companies in the Group become parties to legal processes. cant share of the Vattenfall AB’s net sales, purchasing or earnings
Margin receivables (derivative market)2 2,030 1,895
issued guarantees on behalf of subsidiaries amounting to In addition, disputes arise in the Group’s operations that do not is attributable to the Swedish state or any of its authorities or
Total 9,325 9,190
SEK 61,125 million (52,914), mainly attributable to obligations lead to legal processes. Vattenfall’s management assesses companies.
in the Business Area Wind. these legal processes and disputes on a regular basis and Disclosures of transactions with key persons in executive posi-
makes provisions in cases where it believes an obligation exists Collateral and pledged assets (received) tions in the company are shown in Note 11 to the Consolidated
Other commitments wind power and this can be judged with a reasonable degree of certainty. In 2025 2024 accounts, Number of employees and personnel costs.
Other commitments related to wind power amount to SEK 2024, Vattenfall was not party to any legal actions, concerning Margin liabilities (derivative market) 2
197 623 Information on transactions with associates during 2025, as
45,430 million (64,866) and mainly relate to guarantees linked alleged anti-competitive behaviour or incidents of bribery or cor- well as the related receivables and liabilities as at 31 December
to project sales and future responsibilities for land restoration ruption. For legal processes or disputes where at present it can- 2025, is presented below.
1. Pledged shares contains of 51% shares of Vattenfall Eldistribution AB.
in connection with wind power investments. not be determined whether an obligation exists or where for
2. To fulfil the requirements for security in the derivative market, in its finan-
other reasons it is not possible to calculate the amount of a pos- cial operations Vattenfall has pledged security to counterparties for the Blakliden Fäbodberget Wind Holding AB
Guarantees for energy trading sible provision with a reasonable degree of certainty, manage- negative fair value of derivative positions. The counterparties are obli- A wind farm from which Vattenfall AB purchases electricity. Pur-
Vattenfall AB has issued guarantees with a total nominal value ment makes the overall judgement that there is no risk for mate- gated to repay this security to Vattenfall in the event the negative fair chases amounted to SEK 94 million (139). Operating revenue
of SEK 68,480 million (74,646) for energy trading conducted by rial impact on the Group’s result of operations or financial value decreases. In a similar manner, counterparties of Vattenfall have from the company amounted to SEK 148 million (178). Loan
the subsidiary Vattenfall Energy Trading. As per 31 December position. As part of the Group’s business activities, in addition to pledged security to Vattenfall. assets amounted to SEK 0 million (355) and interest income
2025 a total of SEK 6,269 million (14,645) of these guarantees the contingent liabilities stated here, guarantees are made for SEK 36 million (25).
had been utilised, which is included in the reported amount of the fulfilment of various contractual obligations. In addition, cus-
contingent liabilities. tomary guarantees and commitments are issued when divest- North Connect KS
ing subsidiaries and operations. Note 30 Gender distribution among Company established for the planning, construction and opera-
Other contingent liabilities senior executives tion of a Sea cable between Norway and the United Kingdom.
Other contingent liabilities SEK 8,968 million (6,725) consists Loan asset per 31 December 2025 amounted to SEK 0 million (3).
mainly of guarantees that Vattenfall AB has issued for Business Refer to Note 11 to the consolidated accounts, Gender distribu-
Area Markets and pension obligations, which amounted to SEK tion among senior executives. Sjöfartsverket
1,969 million (1,969). Under an agreement with Sjöfartsverket, Vattenfall is obligated
to bear certain costs in and around lake Vänern and the Göta
Other significant commitments River (Göta Älv), including erosion protection, dredging and dam
In 2009 Vattenfall AB, together with its subsidiary SKB (the Note 31 Auditors’ fees structures.
Swedish Nuclear Fuel and Waste Management Company) and
the other part-owners of that company, signed a long-term
cooperation agreement with the Östhammar and Oskarshamn ÖPwC
municipalities. The agreement covers the period 2010 to 2025 2024 Note 33 Events after the
approximately 2035 and regulates development efforts in asso-
ciation with the implementation of the Swedish nuclear waste Audit assignment 10 10 balance sheet date
programme. Through development initiatives in areas such as Audit-related assignments 11 6
training, enterprise and infrastructure, over time the parties will Other services 8 — No events have occurred after the balance sheet date that are
generate value-added worth SEK 1,500 million to SEK 2,000 mil- Total 29 16 considered to have a significant impact on Vattenfall AB’s
lion. The parties are to finance the development efforts in pro- accounts.
portion to their ownership interests. The Vattenfall Group’s own- Refer to Note 41 to the consolidated accounts, for further infor-
mation.
Vattenfall Annual and Sustainability Report 2025 203
Financial information / Auditor’s report
Auditor’s report
To the general meeting of the shareholders of Vattenfall AB, accordance with these requirements. This includes that, based
Key Audit Matter How our audit addressed the Key Audit Matter
corporate identity number 556036-2138 on the best of our knowledge and belief, no prohibited services
referred to in the Audit Regulation (537/2014/EU) Article 5.1 have
Property, Plant and Equipment Vattenfall recognises property, plant and equipment in accord-
been provided to the audited company or, where applicable, its
Report on the annual accounts and parent company or its controlled companies within the EU.
For information regarding significant estimates and judgements, ance with IAS 16. Under this standard, assets must be written
down to their recoverable amount when there are indications of
see Note 3. For disclosures related to impairment, see Note 27,
consolidated accounts We believe that the audit evidence we have obtained is suffi- and for property, plant and equipment, see Note 23. Vattenfall impairment. Where applicable, Vattenfall performs impairment
Opinions cient and appropriate to provide a basis for our opinions. reports property, plant and equipment amounting to SEK 275,353 tests in accordance with IAS 36 Impairment of Assets.
million, representing 53% of total assets as at 31 December 2025. Based on this, our audit procedures included, among other
We have audited the annual accounts and consolidated
things, the following:
accounts of Vattenfall AB for the year 2025 except for the sus- Our audit approach At each reporting date, Vattenfall must assess whether there
Audit scope are indications that any asset, or where applicable a group of • We evaluated Vattenfall’s process for identifying indicators of
tainability report on pages 73–105, 107–120, 124–125, 127–145,
assets, may be impaired. If such indications exist, an impairment impairment and the process for preparing impairment valua-
and 147. The annual accounts and consolidated accounts of the We designed our audit by determining materiality and assess-
test is performed by estimating the recoverable amount and tions.
company are included on pages 53–105, 107–120, 124–125, 127– ing the risks of material misstatement in the financial state-
comparing this amount with the carrying value. The valuation • We reviewed documentation related to Vattenfall’s valuation
145, 147 and 152–203 in this document. ments. In particular, we considered where the Board of Directors
models include projections of future cash flows. models.
In our opinion, the annual accounts have been prepared in and the Managing Director made subjective judgements; for
Key assumptions in these calculations include future price • We tested the mathematical accuracy of the c alculations per-
accordance with the Annual Accounts Act and present fairly, in example, in respect of significant accounting estimates that developments, volumes, and the discount rate. Indicators of formed.
all material respects, the financial position of parent company as involved making assumptions and considering future events impairment may include changes in prices and regulatory or • For input data related to projected commodity price develop-
of 31 December 2025 and its financial performance and cash that are inherently uncertain. As in all of our audits, we also political developments. This area requires and depends on man- ments and discount rates, we verified and compared this infor-
flow for the year then ended in accordance with the Annual addressed the risk of management override of internal controls, agement’s estimates and judgements. We therefore determined mation to external sources on a sample basis when possible.
Accounts Act. The consolidated accounts have been prepared including among other matters consideration of whether there the valuation of property, plant and equipment to be a key audit
• We evaluated the company’s consideration of climate‑related
in accordance with the Annual Accounts Act and present fairly, was evidence of bias that represented a risk of material mis- matter.
risks within the valuations.
in all material respects, the financial position of the group as of statement due to fraud.
• We assessed the reasonableness of key assumptions and
31 December 2025 and their financial performance and cash We tailored the scope of our audit in order to perform suffi- performed our own sensitivity analyses where deemed
flow for the year then ended in accordance with IFRS Account- cient work to enable us to provide an opinion on the consoli- relevant.
ing Standards as adopted by the EU, and the Annual Accounts dated financial statements as a whole, taking into account the • We also evaluated the adequacy of the related disclosures.
Act. Our opinions do not cover the statutory sustainability report structure of the group, the accounting processes and controls,
on pages 73–105, 107–120, 124–125, 127–145, and 147. A corpo- and the industry in which the group operates.
rate governance statement has been prepared. The statutory
administration report and the corporate governance statement Materiality Provisions for future nuclear-related expanditures Vattenfall recognises provisions in accordance with IAS 37
For information regarding significant estimates and judgements, rovisions, Contingent Liabilities and Contingent Assets. Under
P
are consistent with the other parts of the annual accounts and The scope of our audit was influenced by our application of
see Note 3, Note 33 on shares in the Swedish Nuclear Waste IAS 37, a provision is recognised when a present obligation is
consolidated accounts, and the corporate governance state- materiality. An audit is designed to obtain reasonable assurance expected to lead to an outflow of resources and the amount
Fund, Note 34 on provisions for future nuclear‑related expendi-
ment is in accordance with the Annual Accounts Act. whether the financial statements are free from material mis- can be estimated reliably.
tures, and Note 39 on contingent liabilities.
We therefore recommend that the general meeting of share- statement. Misstatements may arise due to fraud or error. They As a nuclear operator, Vattenfall has legal obligations related The valuation of provisions for future nuclear‑related expendi-
holders adopts the income statement and balance sheet for the are considered material if individually or in aggregate, they could to this business. Although the legal responsibilities differ between tures is based on estimated future costs adjusted for inflation
parent company and the group. reasonably be expected to influence the economic decisions of Sweden and Germany, Vattenfall has obligations in both coun- and discounted to present value. This involves complex judge-
Our opinions in this report on the annual accounts and con- users taken on the basis of the financial statements. tries relating to the environmental risks associated with nuclear ments. Based on this, our audit procedures included, among
Based on our professional judgement, we determined certain operations. other things, the following:
solidated accounts are consistent with the content of the addi-
tional report that has been submitted to the parent company’s quantitative thresholds for materiality, including the overall Vattenfall has significant obligations regarding the manage- • We evaluated Vattenfall’s process for recognising provisions
group materiality for the consolidated financial statements as a ment of waste arising from current or former nuclear activities, as for future nuclear‑related expenditures.
audit committee in accordance with the Audit Regulation
(537/2014/EU) Article 11. whole. These, together with qualitative considerations, helped well as the future decommissioning of nuclear facilities in Swe- • We evaluated the company’s accounting policies for these
us to determine the scope of our audit and the nature, timing den and Germany. These provisions amounted to SEK 103,821 provisions.
million in the consolidated balance sheet as at 31 December • We obtained cost estimates and evaluated how these were
Basis for Opinions and extent of our audit procedures and to evaluate the effect of
2025. prepared in relation to decommissioning plans for both
We conducted our audit in accordance with International Stand- misstatements, both individually and in aggregate on the finan-
Most of the cash outflows related to these obligations lie far approved and planned decommissioning activities.
ards on Auditing (ISA) and generally accepted auditing stand- cial statements as a whole. into the future, in accordance with a joint decommissioning plan • We assessed the reasonableness of management’s assump-
ards in Sweden. Our responsibilities under those standards are for all nuclear operations in Sweden. This makes the assessment
Key audit matters tions applied in the valuation, including inflation and discount
further described in the Auditor’s Responsibilities section. We of future expenditure complex. The area requires management to rates.
are independent of the parent company and the group in Key audit matters of the audit are those matters that, in our pro- make estimates and judgements across several parameters,
• We also evaluated the adequacy of the related disclosures.
accordance with professional ethics for accountants in Sweden fessional judgment, were of most significance in our audit of the including technological developments, time horizons, cost esti-
and have otherwise fulfilled our ethical responsibilities in annual accounts and consolidated accounts of the current mates and discount rates. Due to these factors, we determined
the accounting for provisions for future nuclear‑related expendi-
tures to be a key audit matter.
Vattenfall Annual and Sustainability Report 2025 204
Financial information / Auditor’s report
The Audit Committee shall, without prejudice to the Board of group in accordance with professional ethics for accountants in
Key Audit Matter How our audit addressed the Key Audit Matter
Directors responsibilities and tasks in general, among other Sweden and have otherwise fulfilled our ethical responsibilities
things oversee the company’s financial reporting process. in accordance with these requirements.
Valuation of derivatives and hedge Derivatives are financial instruments whose value is derived
from the value of an underlying variable. Vattenfall measures We believe that the audit evidence we have obtained is suffi-
accounting within Markets
For information regarding market, volume and liquidity risks, see and recognises derivatives in accordance with IFRS 9 Financial Auditor’s responsibility cient and appropriate to provide a basis for our opinions.
pages 53-54. For information regarding significant estimates Instruments, which can involve complex judgements. Based on Our objectives are to obtain reasonable assurance about
and judgements, see Note 3. For disclosures on derivatives, see this, our audit procedures included, among other things, the whether the annual accounts and consolidated accounts as a Responsibilities of the Board of Directors
Note 30 and Note 37 regarding effects on equity. following: whole are free from material misstatement, whether due to fraud and the Managing Director
Vattenfall Markets is part of BA Power Generation and consti- • We evaluated Vattenfall’s procedures related to derivatives or error, and to issue an auditor’s report that includes our opin- The Board of Directors is responsible for the proposal for appro-
tutes an important area of Vattenfall’s operations. The Markets and hedge accounting within Markets, focusing on assess- ions. Reasonable assurance is a high level of assurance, but is priations of the company’s profit or loss. At the proposal of a div-
business includes accounting matters of a complex nature. ments of fair value measurements.
Vattenfall buys and sells energy through Markets, and in order to not a guarantee that an audit conducted in accordance with idend, this includes an assessment of whether the dividend is
• We tested relevant IT systems and controls in this area. ISAs and generally accepted auditing standards in Sweden will justifiable considering the requirements which the company’s
reduce volatility, various types of derivatives are used, some of
which are subject to hedge accounting. • We assessed the appropriateness of the valuation models always detect a material misstatement when it exists. Misstate- and the group’s type of operations, size and risks place on the
Derivatives used include, among others, commodity deriva- used, including the reasonableness of assumptions and other ments can arise from fraud or error and are considered material size of the parent company’s and the group’ equity, consolida-
tives that are not traded on an exchange. Fair value measure- input data. if, individually or in the aggregate, they could reasonably be tion requirements, liquidity and position in general.
ment of these derivatives involves significant complexities and • We reviewed valuations of financial instruments and assessed expected to influence the economic decisions of users taken on The Board of Directors is responsible for the company’s
assumptions, particularly during periods of market illiquidity. We whether hedge accounting is applied in accordance with
therefore determined the valuation of derivatives and the appli-
the basis of these annual accounts and consolidated accounts. organization and the administration of the company’s affairs.
IFRS 9.
cation of hedge accounting within Markets to be a key audit A further description of our responsibility for the audit of the This includes among other things continuous assessment of
• We also evaluated the adequacy of the related disclosures. annual accounts and consolidated accounts is available on the company’s and the group’s financial situation and ensuring
matter.
Swedish Inspectorate of Auditors’ website: www.revisorsinspek- that the company´s organization is designed so that the
tionen.se/revisornsansvar. This description is part of the audi- accounting, management of assets and the company’s financial
tor´s report. affairs otherwise are controlled in a reassuring manner. The
period. These matters were addressed in the context of our If we, based on the work performed concerning this informa- Managing Director shall manage the ongoing administration
audit of, and in forming our opinion thereon, the annual tion, conclude that there is a material misstatement of this other according to the Board of Directors’ guidelines and instructions
accounts and consolidated accounts as a whole, but we do not information, we are required to report that fact. We have nothing Report on other legal and regulatory and among other matters take measures that are necessary to
provide a separate opinion on these matters. to report in this regard. requirements fulfill the company’s accounting in accordance with law and
handle the management of assets in a reassuring manner.
Other Information than the annual accounts Responsibilities of the Board of Directors The auditor’s examination of the administration
and consolidated accounts and the Managing Director of the company and the proposed appropriations Auditor’s responsibility
This document also contains other information than the annual The Board of Directors and the Managing Director are responsi- of the company’s profit or loss Our objective concerning the audit of the administration, and
accounts and consolidated accounts and is found on pages ble for the preparation of the annual accounts and consolidated thereby our opinion about discharge from liability, is to obtain
1–52, 146, 148, 207–218, and the sustainability report on pages accounts and that they give a fair presentation in accordance Opinions audit evidence to assess with a reasonable degree of assurance
73–105, 107–120, 124–125, 127–145, and 147. with the Annual Accounts Act and, concerning the consolidated In addition to our audit of the annual accounts and consolidated whether any member of the Board of Directors or the Managing
The other information also comprises the remuneration accounts, in accordance with IFRS Accounting Standards as accounts, we have also audited the administration of the Board Director in any material respect:
report, which we obtained prior to the date of this auditor’s adopted by the EU. The Board of Directors and the Managing of Directors and the Managing Director of Vattenfall AB for the • has undertaken any action or been guilty of any omission
report. The Board of Directors and the Chief Executive Officer Director are also responsible for such internal control as they year 2025 and the proposed appropriations of the company’s which can give rise to liability to the company, or
are responsible for this other information. determine is necessary to enable the preparation of annual profit or loss.
Our opinion on the annual accounts and consolidated accounts and consolidated accounts that are free from material • in any other way has acted in contravention of the Companies
We recommend to the general meeting of shareholders that
accounts does not cover this other information and we do not misstatement, whether due to fraud or error. Act, the Annual Accounts Act or the Articles of Association.
the profit be appropriated in accordance with the proposal in
express any form of assurance conclusion regarding this other In preparing the annual accounts and consolidated accounts, the statutory administration report and that the members of the
information. The Board of Directors and the Managing Director are responsi- Our objective concerning the audit of the proposed appropria-
Board of Directors and the Managing Director be discharged
In connection with our audit of the annual accounts and con- ble for the assessment of the company’s and the group’s ability tions of the company’s profit or loss, and thereby our opinion
from liability for the financial year.
solidated accounts, our responsibility is to read the information to continue as a going concern. They disclose, as applicable, about this, is to assess with reasonable degree of assurance
identified above and consider whether the information is materi- matters related to going concern and using the going concern whether the proposal is in accordance with the Companies Act.
Basis for Opinions
ally inconsistent with the annual accounts and consolidated basis of accounting. The going concern basis of accounting is Reasonable assurance is a high level of assurance, but is not
We conducted the audit in accordance with generally accepted
accounts. In this procedure we also take into account our knowl- however not applied if the Board of Directors and the Managing a guarantee that an audit conducted in accordance with gener-
auditing standards in Sweden. Our responsibilities under those
edge otherwise obtained in the audit and assess whether the Director intend to liquidate the company, to cease operations, or ally accepted auditing standards in Sweden will always detect
standards are further described in the Auditor’s Responsibilities
information otherwise appears to be materially misstated. has no realistic alternative but to do so. actions or omissions that can give rise to liability to the com-
section. We are independent of the parent company and the
Vattenfall Annual and Sustainability Report 2025 205
Financial information / Auditor’s report
pany, or that the proposed appropriations of the company’s Auditor’s responsibility Öhrlings PricewaterhouseCoopers AB, was appointed auditor of Vattenfall AB by the general meeting of
profit or loss are not in accordance with the Companies Act. Our responsibility is to obtain reasonable assurance whether the shareholders on the 28 April 2025 and has been the company’s auditor since the 28 April 2021.
A further description of our responsibility for the audit of the the Esef report is in all material respects prepared in a format
administration is available on Swedish Inspectorate of Auditors’ that meets the requirements of Chapter 16, Section 4(a) of the
website: www.revisorsinspektionen.se/revisornsansvar. This Swedish Securities Market Act (2007:528), based on the proce-
description is part of the auditor’s report. dures performed.
RevR 18 requires us to plan and execute procedures to Stockholm, 24 March 2026
achieve reasonable assurance that the Esef report is prepared Öhrlings PricewaterhouseCoopers AB
The auditor’s examination in a format that meets these requirements.
of the ESEF report Reasonable assurance is a high level of assurance, but it is
not a guarantee that an engagement carried out according to Eva Carlsvi Aleksander Lyckow
Opinion RevR 18 and generally accepted auditing standards in Sweden Authorised Public Accountant Authorised Public Accountant
In addition to our audit of the annual accounts and consolidated will always detect a material misstatement when it exists. Mis- Auditor in charge
accounts, we have also examined that the Board of Directors statements can arise from fraud or error and are considered
and the Managing Director have prepared the annual accounts material if, individually or in aggregate, they could reasonably be
and consolidated accounts in a format that enables uniform expected to influence the economic decisions of users taken on
electronic reporting (the Esef report) pursuant to Chapter 16, the basis of the Esef report.
Section 4 a of the Swedish Securities Market Act (2007:528) for The firm applies International Standard on Quality Manage-
This is a translation of the Swedish language original. In the event of any differences
Vattenfall AB for the financial year 2025. ment 1, which requires the firm to design, implement and oper-
between this translation and the Swedish language original, the latter shall prevail.
Our examination and our opinion relate only to the statutory ate a system of quality management including policies or proce-
requirements. dures regarding compliance with ethical requirements,
In our opinion, the Esef report has been prepared in a format professional standards and applicable legal and regulatory
that, in all material respects, enables uniform electronic requirements.
reporting. The examination involves obtaining evidence, through various
procedures, that the Esef report has been prepared in a format
Basis for Opinion that enables uniform electronic reporting of the annual
We have performed the examination in accordance with FAR’s accounts and consolidated accounts. The procedures selected
recommendation RevR 18 Examination of the Esef report. Our depend on the auditor’s judgment, including the assessment of
responsibility under this recommendation is described in more the risks of material misstatement in the report, whether due to
detail in the Auditors’ responsibility section. We are independent fraud or error. In carrying out this risk assessment, and in order
of Vattenfall AB in accordance with professional ethics for to design audit procedures that are appropriate in the circum-
accountants in Sweden and have otherwise fulfilled our ethical stances, the auditor considers those elements of internal con-
responsibilities in accordance with these requirements. trol that are relevant to the preparation of the Esef report by the
We believe that the evidence we have obtained is sufficient Board of Directors and the Managing Director, but not for the
and appropriate to provide a basis for our opinion. purpose of expressing an opinion on the effectiveness of those
internal controls. The examination also includes an evaluation of
Responsibilities of the Board of Directors the appropriateness and reasonableness of assumptions made
and the Managing Director by the Board of Directors and the Managing Director.
The Board of Directors and the Managing Director are responsi- The procedures mainly include a validation that the Esef
ble for the preparation of the Esef report in accordance with the report has been prepared in a valid XHTML format and a recon-
Chapter 16, Section 4 a of the Swedish Securities Market Act ciliation of the Esef report with the audited annual accounts and
(2007:528), and for such internal control that the Board of Direc- consolidated accounts.
tors and the Managing Director determine is necessary to pre- Furthermore, the procedures also include an assessment of
pare the Esef report without material misstatements, whether whether the consolidated statement of financial performance,
due to fraud or error. financial position, changes in equity, cash flow and disclosures
in the Esef report have been marked with iXBRL in accordance
with what follows from the Esef regulation.
Vattenfall Annual and Sustainability Report 2025 206
Other
Quarterly overview .......................................................... 208
Five-year overview .......................................................... 209
Facts about Vattenfall’s markets .......................... 210
Pro rata ......................................................................................... 212
Glossary ...................................................................................... 213
Definitions of key ratios ................................................ 215
Calculations of key ratios ............................................ 216
Financial calendar .............................................................. 217
Vattenfall Annual and Sustainability Report 2025 207
Other / Quarterly overview
Quarterly overview
2025 2024 2025 2024
Amounts in SEK million Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Amounts in SEK million Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Income statement items Key ratios, last 12-month values
Net sales 67,134 49,268 50,553 67,960 68,488 48,573 52,010 76,499 Financial targets1
Operating profit before depreciation, Return on capital employed
amortisation and impairment losses excl. items affecting comparability, % 10.2 7.6 5.9 4.7 5.4 7.6 7.1 6.9
(EBITDA) 15,337 8,536 11,782 13,582 10,743 6,654 16,852 26,530 Adjusted FFO/adjusted net debt, % 53.4 50.5 40.7 35.0 41.5 46.2 42.4 30.5
Underlying EBITDA1, 2 14,651 11,302 11,889 13,717 6,655 6,483 8,992 15,538
Other key ratios1
Operating profit (EBIT) 9,279 3,388 6,067 8,367 5,023 1,213 11,860 20,755
Return on equity, % 10.3 9.6 9.8 12.6 19.0 19.8 18.1 9.1
Underlying EBIT1, 2 9,467 6,154 6,814 8,502 922 1,387 4,030 10,721
FFO interest cover, (times) 10.4 9.2 8.5 7.5 7.2 7.2 7.2 6.3
Profit before income taxes 8,688 3,026 6,682 7,586 3,017 2,839 11,863 20,241
Net debt/EBITDA, (times) 0.2 0.1 0.2 0.1 0.0 0.1 0.3 1.2
Profit for the period 6,603 2,269 4,867 5,961 5,084 2,053 9,365 16,879
Adjusted net debt/EBITDA, (times)2 1.5 1.6 1.9 1.7 1.3 1.2 1.3 2.4
– of which, attributable to owners
of the parent company 6,180 2,164 4,479 5,792 4,861 1,698 9,146 16,089 Return on capital employed, %3 8.9 7.8 6.9 8.4 12.4 13.3 11.5 6.6
Adjusted profit for the period1 5,926 4,060 3,713 6,149 3,371 –723 5,895 11,431 FFO/adjusted net debt, %3 53.2 50.8 43.3 43.8 49.2 46.7 40.9 26.8
Balance sheet items Other information
Equity 199,394 195,069 194,788 195,503 201,921 183,044 177,302 166,464 Electricity generation, TWh 27.8 23.8 23.5 27.1 24.4 21.1 23.0 31.0
– of which, attributable to owners Sales of electricity, TWh 42.3 40.5 38.2 43.8 41.0 35.7 38.0 45.4
of the parent company 172,676 167,902 167,352 168,624 171,196 152,119 147,839 136,220 Sales of heat, TWh 1.4 0.5 0.7 1.9 1.6 0.5 1.5 5.6
Net debt1 –11,728 –5,768 –9,702 –4,616 2,767 –3,174 –14,360 –53,719 Sales of gas, TWh 19.1 6.8 10.5 28.54 22.14 6.84 8.84 20.2
Adjusted net debt1, 2 –73,442 –72,370 –81,442 –83,463 –79,014 –69,122 –75,457 –107,191 Number of employees,
Capital employed, average1 304,650 293,546 298,881 315,090 313,047 299,803 312,391 323,153 full-time equivalents 20,869 20,872 20,977 20,857 20,655 20,356 20,193 21,446
Cash flow items
1. See Definitions of key ratios for more information.
Funds from operations (FFO) 12,505 8,563 8,609 12,170 9,450 5,220 5,282 15,517
2. The key ratio has been adjusted and prior periods have been restated, see Definitions of key ratios for more information.
Adjusted FFO1, 2 11,435 8,230 8,211 11,347 8,776 4,792 4,314 14,937 3. Previous financial target, and one of Vattenfall’s strategic targets for 2025.
Cash flow from operating activities 5,283 11,758 7,536 –1,333 16,610 17,715 20,800 6,744 4. The value has been adjusted compared with information previously published in Vattenfall’s financial reports.
Cash flow from investing activities –10,556 –3,564 –1,120 –872 –17,202 –18,260 17,808 58
Cash flow from financing activities –11,926 –723 –7,816 –5,360 2,918 353 –38,856 –8,479
Cash flow for the period –17,199 7,471 –1,400 –7,565 2,326 –192 –248 –1,677
Free cash flow1 367 8,275 2,921 –4,627 10,588 13,514 17,649 2,318
Vattenfall Annual and Sustainability Report 2025 208
Other / Five-year overview
Five-year overview
Amounts in SEK million 2025 2024 2023 2022 2021 Amounts in SEK million 2025 2024 2023 2022 2021
Income statement items Key ratios
Net sales 234,915 245,570 290,168 239,644 180,119 Financial targets1
Operating profit before depreciation, Return on capital employed excl. items affecting comparability, % 10.2 5.4 —5 —5 —5
amortisation and impairment losses (EBITDA) 49,236 60,779 39,685 30,513 75,790 Adjusted FFO/adjusted net debt, % 53.4 41.5 —5 —5 —5
Underlying EBITDA1, 2 51,557 37,667 40,340 53,521 48,584
Other key ratios1
Operating profit (EBIT) 27,102 38,851 16,991 12,645 60,271
Return on equity, % 10.6 19.0 5.9 –0.7 36.9
Underlying EBIT1, 2 30,937 17,059 20,005 37,313 31,181
FFO interest cover, (times) 10.4 7.2 5.5 8.1 12.9
Profit before income taxes 25,983 37,959 16,222 –87 59,373
Net debt/EBITDA, (times) 0.2 0.0 1.7 0.1 –0.6
Profit for the year 19,700 33,380 10,395 21 48,013
Adjusted net debt/EBITDA, (times)2 1.5 1.2 3.5 2.5 0.4
– of which, attributable to owners of the parent company 18,614 31,793 8,646 –1,102 46,828
Return on capital employed, %3 8.9 12.4 5.3 4.2 22.2
Adjusted profit for the period1 19,849 19,972 —5 —5 —5
FFO/adjusted net debt, %3 53.2 49.2 21.5 55.0 171.2
Balance sheet items
Other information
Equity 199,394 201,921 139,429 128,937 197,182
Dividend to owners of the parent company 8,0004 7,000 4,000 4,000 23,414
– of which, attributable to owners of the parent company 172,676 171,196 113,466 110,473 180,710
Electricity generation, TWh 102.1 99.6 100.9 108.9 111.4
Net debt1 –11,728 2,767 –68,424 3,858 –44,703
Sales of electricity, TWh 164.9 160.2 168.0 165.3 168.9
Adjusted net debt1, 2 –73,442 –79,014 –139,517 76,765 26,922
Sales of heat, TWh 4.5 9.1 13.5 14.1 15.6
Capital employed, average1 304,650 313,047 320,041 299,461 271,674
Sales of gas, TWh 65.0 57.96 44.5 47.3 57.1
Cash flow items Number of employees, full-time equivalents 20,869 20,655 20,995 19,638 18,883
Funds from operations (FFO) 41,847 35,469 30,058 42,194 46,096
Adjusted FFO1, 2 39,224 32,819 —5 —5 —5 1. See Definitions of key ratios for more information.
Cash flow from operating activities 23,245 61,869 –24,624 1,154 101,832 2. The key ratio has been adjusted 2025 and 2024 has been restated, see Definitions of key ratios for more information.
Cash flow from investing activities –16,114 –17,596 4,150 19,004 –79,021 3. Previous financial target, and one of Vattenfall’s strategic targets for 2025.
Cash flow from financing activities –25,825 –44,063 –56,631 19,689 18,993 4. Proposed dividend.
Cash flow for the period –18,694 210 –77,105 39,847 41,804 5. New key ratio 2025.
Free cash flow1 6,392 44,069 –43,122 –11,126 90,820 6. The value has been adjusted compared with information previously published in Vattenfall’s financial reports.
Vattenfall Annual and Sustainability Report 2025 209
Other / Facts about Vattenfall’s markets
Facts about Vattenfall’s markets 2025
Sweden Finland 2 Denmark Germany3 Netherlands UK Total Sweden Finland 2 Denmark Germany3 Netherlands UK Total
Installed capacity electricity, MW, Production of heat, TWh
31 December 2025 Fossil-based heat 0.0 — — 0.0 1.3 0.0 1.3
Hydropower (excluding pumped storage)1 8,849.9 136.0 — 9.3 24.0 — 9,019.2 – of which, gas 0.0 — — 0.0 1.3 0.0 1.3
Nuclear power 5,728.0 — — 0.0 — — 5,728.0 – of which, hard coal 0.0 — — 0.0 — — 0.0
Fossil-based power 702.0 — — — 2,012.0 0.9 2,714.9 – of which, oil and other 0.0 — — 0.0 — — 0.0
– of which, gas — — — — 2,012.0 0.9 2,012.9 Biomass, peat, waste 3.0 — — 0.1 0.0 0.0 3.1
– of which, hard coal — — — — — — — Total heat production 3.1 — — 0.1 1.3 0.0 4.5
– of which, oil and other 702.0 — — — — — 702.0
Wind power 330.5 — 1,647.1 576.0 2,052.8 1,111.0 5,717.4 Sales of electricity, TWh 81.6 3.6 6.8 46.3 26.6 — 164.9
Biomass, peat, waste 84.7 — — —4 12.0 — 113.7 Sales of heat, TWh 2.8 — — 0.1 1.6 — 4.5
Solar power — — — 5.3 70.8 — 76.1 Sales of gas, TWh — — — 29.7 35.3 — 65.0
Total 15,695.1 136.0 1,647.1 590.6 4,171.6 1,111.9 23,352.3 Number of retail customers 857 907 284 340 — 4 356 124 1 912 632 — 7 411 003
Electricity storage installed capacity, MW — — — 2,758.3 15.2 42.0 2,815.5 Electricity volume, TWh retail customers 7.0 1.5 — 11.8 5.7 — 26.1
Electricity volume, TWh businesses 24.3 8.3 2.2 9.5 11.7 — 56.0
Electricity storage capability, GWh — — — 18.3 0.0 0.1 18.4 Electricity volume, TWh resellers 6.8 2.4 1.2 24.0 — — 34.3
Installed capacity heat, MW, Electricity volume, TWh other 43.5 –8.6 3.4 1.0 9.2 — 48.5
31 December 2025 1,902.8 — — —4 1,534.5 28.5 3,465.8
Number of network customers 978 099 — — — — — 978 099
Generated electricity, TWh Number of gas customers — — — 857 126 1 567 711 — 2 424 837
Hydropower (excluding pumped storage)1 33.2 0.3 — 0.0 0.0 — 33.5
Nuclear power 40.2 — — — — — 40.2 Electricity network 72.7 — — — — — 72.7
Fossil-based power 0.0 — — — 7.1 0.0 7.1 Transited volume, TWh
– of which, gas — — — — 7.1 0.0 7.1 Distribution network, km 126,550 — — — — — 126,550
– of which, hard coal — — — — — 0.0 0.0 Number of employees
– of which, oil and other 0.0 — — — — 0.0 0.0 (full-time equivalents) 11,557 93 631 3,985 4,124 480 20,869
Wind power 0.6 — 5.6 1.9 6.3 2.8 17.2
CO2 emissions per country, Mtonnes 0.2 0.0 0.0 0.1 3.1 0.0 3.4
Biomass, peat, waste 0.1 — — 0.1 0.0 0.0 0.2
CO2 emission allowances received,
Solar power — — — — 0.1 — 0.1 Mtonnes CO2/year 0.1 — — — 0.0 — 0.1
Total 74.1 0.3 5.6 2.0 13.5 2.8 98.3
Greenhouse gas emissions per target
Electricity delivered from storage, TWh — — — 3.8 0.0 — 3.8 category in our Science-based targets,
Mtonnes
Scope 1 and 2, market-based 0.2 0.0 0.0 0.1 3.1 0.0 3.4
Scope 3.3d, electricity sales — 0.9 0.6 2.4 0.7 — 4.6
Scope 3.11, sold fossil fuels 0.0 0.0 0.0 3.9 7.1 — 11.0
Other scope 3 categories5 4.2
1. Hydropower have been adjusted to report electricity delivered from storage, primarily from pumped storage plants, separately.
2. Including data from Norway.
3. Including data from France and Poland.
4. As of December 2025, the Rostock waste-to-energy plant is excluded as it was divested in the autumn.
5. Some minor categories such as employee commuting are calculated on a Group level, therefore we cannot report them per country.
Vattenfall Annual and Sustainability Report 2025 210
Other / Facts about Vattenfall’s markets
Facts about Vattenfall’s markets 2024
Sweden Finland 2 Denmark Germany3 Netherlands UK Total Sweden Finland 2 Denmark Germany3 Netherlands UK Total
Installed capacity electricity, MW, Production of heat, TWh
31 December 2024
Fossil-based heat 0.0 — — 3.9 1.3 0.0 5.3
Hydro power1 8,540.9 136.0 — 9.3 24.0 — 8,710.2
– of which, gas — — — 3.0 1.3 0.0 4.3
Nuclear power 5,729.0 — — — — — 5,729.0
– of which, hard coal — — — 1.0 — — 1.0
Fossil-based power 699.0 — — — 1,997.0 0.9 2,696.9
– of which, oil and other 0.0 — — 0.0 — — 0.1
– of which, gas — — — — 1,997.0 0.9 1,997.9
Biomass, peat, waste 3.3 — — 0.5 0.0 0.0 3.8
– of which, hard coal — — — — — — —
Total heat production 3.3 — — 4.4 1.4 0.0 9.2
– of which, oil and other 699.0 — — — — — 699.0
Wind power 330.5 — 1,647.9 576.0 2,052.8 1,111.0 5,718.2 Sales of electricity, TWh 78.1 2.5 7.3 46.8 25.6 — 160.2
Biomass, peat, waste 84.7 — — 17.0 1.0 — 102.7 Sales of heat, TWh 3.1 — — 4.5 1.6 — 9.1
Solar power — — — 5.3 44.3 — 49.6 Sales of gas, TWh — — — 16.730 34.197 — 50.9
Total 15,384.1 136.0 1,647.9 607.6 4,119.1 1,111.9 23,006.6
Number of retail customers 858,885 275,560 — 4,659,463 1,934,571 — 7,728,479
Electricity storage installed capacity, MW — — — 2,758.3 15.2 42.0 2,815.5 Electricity volume, TWh retail customers 6.7 1.6 0.2 13.2 5.6 — 27.3
Electricity volume, TWh businesses 25.7 6.4 1.9 9.0 11.9 — 55.0
Electricity storage capability, GWh — — — 18.3 0.0 0.0 18.3
Electricity volume, TWh resellers 6.9 2.1 1.1 23.6 — — 33.6
Installed capacity heat, MW, Electricity volume, TWh other 38.9 –8 4.1 1.0 8.0 — 44.4
31 December 2024 1,888.8 — — 45.8 1,553.5 28.5 3,516.6
Number of network customers 977,526 — — — — — 977,526
Generated electricity, TWh Number of gas customers — — — 767,379 1,601,064 — 2,368,443
Hydro power1 30.7 0.4 — 0.0 0.1 — 31.1
Nuclear power 37.9 — — — — — 37.9 Electricity network
Fossil-based power 0.0 — — 2.6 6.7 0.0 9.3 Transited volume, TWh 72.6 — — — — — 72.6
– of which, gas — — — 1.9 6.7 0.0 8.6 Distribution network, km 125,457 — — — — — 125,457
– of which, hard coal — — — 0.7 — — 0.7 Number of employees
– of which, oil and other 0.0 — — 0.0 — — 0.0 (full-time equivalents) 11,434 92 631 3,897 4,105 496 20,655
Wind power 0.8 — 6.1 2.0 5.5 2.8 17.1
CO2 emissions per country, Mtonnes 0.2 0.0 0.0 2.0 2.9 0.0 5.2
Biomass, peat, waste 0.1 — — 0.1 0.0 — 0.3
CO2 emission allowances received,
Solar power — — — 0.0 0.0 — 0.0
Mtonnes CO2/year 0.1 — — — 0.0 — 0.1
Total 69.5 0.4 6.1 4.7 12.2 2.8 95.7
Greenhouse gas emissions per target
Electricity delivered from storage, TWh — — — 3.5 0.0 — 3.5 category in our Science-based targets,
Mtonnes
Scope 1 and 2, market-based 0.2 0.0 0.0 2.0 3.0 0.0 5.2
Scope 3.3d, electricity sales — 0.5 0.8 4.0 1.6 — 6.9
Scope 3.11, sold fossil fuels — — — 3.9 6.9 — 10.2
Other Scope 3 categories4 — 4.3
1. Hydro power have been adjusted to report electricity delivered from storage, primarily from pumped storage plants, separately.
2. Including data from Norway.
3. Including data from France and Poland.
4. Some minor categories such as employee commuting are calculated on a Group level, therefore we cannot report them per country.
Vattenfall Annual and Sustainability Report 2025 211
Other / Pro rata
Pro rata
2025 Sweden Finland Denmark Germany Netherlands UK Total 2024 Sweden Finland Denmark Germany Netherlands UK Total
Installed capacity electricity, MW, Installed capacity electricity, MW,
31 December 2025 31 December 2024
Hydro power1 8,647.8 136.0 — 9.3 24.0 — 8,817.1 Hydro power1 8,339.1 136,0 — 9,3 24,0 — 8,508.4
Nuclear power 3,878.9 — — 0.0 — — 3,878.9 Nuclear power 3,879.6 — — — — — 3,879.6
Fossil-based power 702.0 — — — 2,008.0 0.9 2,710.9 Fossil-based power 699.0 — — — 1,997.0 0.9 2,696.9
– of which, gas — — — — 2,008.0 0.9 2,008.9 – of which, gas — — — — 1,997.0 0.9 1,997.9
– of which, hard coal — — — — — — — – of which, hard coal — — — — — — —
– of which, oil and other 702.0 — — — — — 702.0 – of which, oil and other 699.0 — — — — — 699.0
Wind power 366.4 — 1,618.2 309.5 1,218.7 1,037.5 4,550.3 Wind power 366.4 — 1,619.0 309.5 1,276.5 1,038.4 4,609.8
Biomass, peat, waste 84.7 — — —2 12.0 — 96.7 Biomass, peat, waste 84.7 — — 17.0 1.0 — 102.7
Solar power — — — 5.3 70.8 — 76.1 Solar power — — — 5.3 44.3 — 49.6
Total 13,679.8 136.0 1,618.2 324.2 3,333.5 1,038.4 20,130.1 Total 13,368.8 136.0 1,619.0 341.1 3,342.8 1,039.3 19,847
Electricity storage installed capacity, MW — — — 2,758.3 15.2 42.0 2,815.5 Electricity storage installed capacity, MW — — — 2,758.3 15.2 42.0 2,815.5
Electricity storage capability, TWh — — — 18.3 0.0 0.1 18.4 Electricity storage capability, TWh — — — 18.3 0,0 — 18.3
Installed capacity heat, MW, Installed capacity heat, MW,
31 December 2025 1,794.0 — — —2 1,525.0 28.5 3,347.5 31 December 2024 1,780,0 — — 45.8 1,544.0 28.5 3,398.3
Generated electricity, TWh Generated electricity, TWh
Hydro power1 32.2 0.3 — 0.0 0.0 — 32.5 Hydro power1 29.7 0.4 — 0.0 0.1 — 30.2
Nuclear power 27.3 — — 0.0 — — 27.3 Nuclear power 25.7 — — — — 25.7
Fossil-based power 0.0 — — 0.0 7.1 0.0 7.1 Fossil-based power 0.0 — — 2.6 6.7 0.0 9.3
– of which, gas 0.0 — — 0.0 7.1 0.0 7.1 – of which, gas — — — 1.9 6.7 0.0 8.6
– of which, hard coal 0.0 — — 0.0 — — 0.0 – of which, hard coal — — — 0.7 — — 0.7
– of which, oil and other 0.0 — — 0.0 — — 0.0 – of which, oil and other 0.0 — — 0.0 — — 0.0
Wind power 0.6 — 5.5 1.1 3.8 2.6 13.6 Wind power 0.8 — 6.0 1.0 3.4 2.6 13.8
Biomass, peat, waste 0.1 — — 0.1 0.0 — 0.1 Biomass, peat, waste 0.1 — — 0.1 0.0 — 0.3
Solar power — — — 0.0 0.1 — 0.1 Solar power — — — 0.0 0.0 — 0.0
Total 60.1 0.3 5.5 1.2 11.0 2.6 80.8 Total 56.4 0.4 6.0 3.8 10.2 2.6 79.3
Electricity delivered from storage, TWh — — — 3.8 0.0 0.0 3.8 Electricity delivered from storage, TWh — — — 3.5 0.0 — 3.5
Produced heat, TWh 2.9 — — 0.1 3.1 0.0 6.1 Produced heat, TWh 3.1 4.4 1.4 0.0 9.0
CO2 emissions per country, Mtonnes 0.2 0.0 0.0 0.1 0.0 0.0 0.3 CO2 emissions per country, Mtonnes 0.2 0.0 0.0 2.0 2.9 0.0 5.1
1. Hydro power has been adjusted to report electricity delivered from storage, primarily from pumped storage plants, separately.
2. As of December 2025, the Rostock waste-to-energy plant is excluded as it was divested in the autumn.
Vattenfall Annual and Sustainability Report 2025 212
Other / Glossary
Glossary
Ancillary services: Are purchased by the Transmission System Decentralised production/energy solutions: Any form of Forward market: A market in which buyers and sellers agree ISO 14001: An international standard in the ISO 14000 series
Operator in order to ensure a balanced and reliable electric energy provision that is not provided from the central electricity on a set price for a future delivery of the underlying instrument, for establishing environmental management systems.
power system and can be provided from power plants, assets grid, for example local power generation such as rooftop solar such as an electricity contract (see also derivative instrument).
with flexible electricity consumption, or energy storage. There panels, heating solutions including heat pumps and storage Just Transition and Responsible Decommissioning:
are different types of ancillary services where the requirement technologies. Fossil fuels: Fuels based on hydrocarbons from ancient A process involving employers, unions, governments and com-
on endurance and speed differ. s edimentary layers – mainly coal, oil and natural gas. munities, planning and delivering the transition of economies,
Derivative instrument: A derivative is a financial instrument sectors, and companies to low carbon, socially just and environ-
Availability: Refers to technical availability, which is the that is commonly used to manage risk. The value and change in Global Compact: The United Nations’ (UN’s) ten principles mentally sustainable activities. At the company level, a just tran-
percentage of planned production time for an asset without value of derivative instruments are derived from the value of an for companies s
urrounding human rights, labour issues, the sition is process that plans emissions reduction efforts to max-
unexpected technical difficulties or maintenance needs. underlying asset, which can be commodities, precious metals, environment and anti-corruption. imise positive impacts and minimise negative impacts on
currency, bonds, stocks, and similar. Examples of derivative workers and communities through retention and redeployment,
Bankable: Refers to something that is deemed acceptable or instruments are options, forward contracts, and swaps. Global Reporting Initiative, (GRI): A global standard for skills training, new job creation, social inclusion and community
suitable for financial support from e.g. institutional investors sustainability reporting. (see https://www.globalreporting.org/) renewal.
or approval from a bank or financial institution. Develop-to-sell: Refers to projects that are developed to be
sold at completion as opposed to projects that are being built Guarantee of origin: Guarantees certify how and where Levelised Energy Cost, (LEC): The average cost of production
Biomass: Renewable fuel, such as forest residues, bark and to own. electricity was produced from renewable sources. per kilowatt hour e
lectricity, calculated over the full lifetime of the
pine oil. generating asset. The net present value method is used to
Dispatchable electricity source: Sources of electricity that Heat only boiler, (HOB): A plant that produces heat for district discount future costs with the weighted average cost of capital
Carbon capture, utilisation and storage, (CCUS): A process can be readily turned on and off and used to adjust the supply heating as its sole output. (WACC).
that involves the capture of CO2 from sources, such as fossil of power to the grid on demand.
fuel-powered power generation or industrial facilities. The CO2 High-risk minerals: Minerals that are mined in an area of Life cycle analysis (LCA): Methodology to establish a product’s
can also be captured directly from the atmosphere. If not being Efficiency: An efficiency rating indicates the relationship armed conflict and traded illicitly to finance the conflict; total environmental impact during its life cycle, from raw
used on-site, the captured CO2 is compressed and transported between energy input and energy output in a system. deemed essential to the energy transition which may have no material extraction, through manufacturing processes and
by pipeline, ship, rail or truck to be used in a range of applica- viable substitutes, and may face potential disruption in supply; usage, to waste management, including all transportation and
tions, or injected into deep geological formations for permanent Electrofuel: Electrofuel is categorised as a sustainable aviation or considered rare earth elements (REE). energy consumption.
storage. CCUS using biomass as a fuel is called bio-CCUS. fuel since the only inputs to the process of making electrofuel
are fossil-free electricity, water and recycled carbon dioxide Hydrogen: Hydrogen as a fuel source can be produced in Lost Time Injury, (LTI): Work-related accidents resulting in
Circular economy: A circular economy is a framework for sus- (in contrast to virgin fossil feedstock). Electricity will be mainly s everal different ways and is typically categorised into different absence longer than one day, and accidents resulting in fatality.
tainable growth – with the overarching goal to reduce society’s used to make hydrogen via electrolysis which together with colours depending on the production process. Grey hydrogen Commonly expressed as LTIF, or Lost Time Injury Frequency,
resource use and the resulting environmental impact. c arbon dioxide can be converted into ethanol and next con- is currently the most common form of hydrogen production the number of such accidents per 1 million hours worked.
verted to aviation electrofuel. where the hydrogen is created from natural gas using steam
Co-location/Co-use: The act of placing or using two or more reforming. Margin call: Margin is collateral and funds that are collected to
facilities, activities or assets in a single location. For example, Environmental Product Declaration, (EPD): A third-party Blue hydrogen is also extracted using the steam reforming protect against future or current risk exposures resulting from
agrivoltaic is the combination of sustainable agriculture and environmental declaration in accordance with ISO 14025 process, but the carbon emissions released from the produc- market price changes or in the event of a counterparty default.
solar power generation on the same agricultural land. (www.environdec.com). tion process are captured and stored. Green hydrogen doesn’t A margin call occurs when the price of the underlying asset
generate any emissions in its entire life cycle as it is produced changes.
Combined heat and power, (CHP): A plant that produces both The EU Emissions Trading System, (EU ETS): The EU’s trading by electrolysing water using renewable energy.
heat and electricity. In such a plant a large share of the primary system for CO2 emission allowances. The system sets a cap for Net Promoter Score, (NPS): a score ranging from –100 to 100
energy is used for electricity and heat production, with little emissions from businesses within the system and facilitates Installed capacity: Also known as nameplate capacity. Refers that measures the willingness of customers to recommend
wasted heat. optimisation through trading in emission allowances. to the maximum amount of electricity that a power plant can a company’s products or s ervices to others and is used
produce under specific conditions according to the design to determine customers’ overall satisfaction with a company
Corporate Power Purchase Agreement (cPPA): A Corporate Forced labour: All work or service which is exacted from any data. Commonly measured in MW (Megawatt). and loyalty to the brand.
Power Purchase Agreement is usually a long term agreement person under the menace of any penalty and for which the said
between a renewable energy generator and a corporate cus- person has not offered himself voluntarily. International Financial Reporting Standards, IFRS: Vattenfall Nord Pool: The Nordic electricity exchange. Started in S
weden
tomer or an organisation. has been reporting in accordance with IFRS since 2005. and Norway in 1996.
Vattenfall Annual and Sustainability Report 2025 213
Other / Glossary
NOX: Collective term for nitrogen oxide, nitrogen dioxide and their heating value. Uranium is assigned a primary energy Swap: A financial instrument that is a combination of a spot Value Chain: All activities, operations, business relationships
similar nitrogen compounds. ontent c
c orresponding to the heat released in the power plant. and forward transaction – a type of financial swap agreement. and investment chains of an undertaking and includes entities
Solar, wind and hydro power are assigned a primary energy with which the company has a direct or indirect business
Offtaker: An offtaker is a party that, in advance, agrees to buy content c orresponding to the extracted electricity (or heat). System Average Interruption D uration Index, (SAIDI): relationship, upstream and downstream.
or sell goods that are still to be produced. In the energy market, An index of average power interruption times within electricity
this typically refers to the party that buys electricity through Psychological safety: An environment where there is a shared distribution. Measured in terms of interruption duration per Volatility: A measure of how the price of a product varies
a PPA (see below). expectation that one will not be embarrassed, rejected, or pun- customer and year. during a given period of time.
ished for sharing ideas, taking risks, or soliciting feedback.
Over the Counter, (OTC): Trading outside of exchanges System Average Interruption F requency Index, (SAIFI): Whistleblowing: A procedure that is voluntarily implemented
(directly or via brokers) in physical and financial contracts. Renewable energy sources: Non-finite energy sources such An index of average power interruption frequency within by Vattenfall and which allows employees, contractors, suppliers,
as hydro power, biomass, wind, the sun, ocean waves and electricity distribution. Measured in terms of the number partners and other external and internal stakeholders to report
Particulate Matter: Particulate matter consists of a mixture of geothermal energy. of power interruptions per customer and year. serious irregularities and other complaints at Vattenfall.
solids and liquid droplets. Some particulate matter is emitted
directly, otherwise it forms when pollutants emitted by various Reservoir levels: Refers to the volume of water stored in a Thermal power: Electricity generated via a heating process, For definitions of financial key ratios, see page 215.
sources react in the atmosphere. Particulate matter comes in reservoir which on a specific occasion can be used for hydro such as a gas turbine or a steam process in a coal or nuclear For CSRD definitions, see Annex II of the CSRD delegated act.
different sizes, with that smaller than 10 micrometers able to power generation. Reservoir levels vary during the year power plant (compare combined heat and power).
enter our lungs and cause serious health problems. depending on precipitation and hydro power generation.
Third Party Integration, (TPI): A process in which excess or
Plannable production: See Dispatchable electricity source, SF6: A greenhouse gas commonly used for electrical insulation waste heat, which would otherwise be released to the atmos-
that is 15,000 times more potent than CO2. phere, is captured from the industrial facilities in which it is
Power-as-a-service (PaaS): A business model which provides produced and integrated into the district heating network.
major energy users with guaranteed power services in Small modular reactor (SMR): A type of nuclear reactors that
exchange for a fixed monthly fee. are smaller and more flexible than conventional reactors, typi-
cally with an electrical power output of up to 300 MW per unit.
Power-to-Heat: Converting electricity to heat using electric Due to a modular and standardised design, components of
boilers combined with hot water storage. With Power-to-Heat SMRs can be pre-manufactured in a factory, then assembled,
systems, the excess power generated primarily from renewable commissioned and operated at a separate site.
energy can be utilised later as district heating.
Smart meter: Smart meters replace existing gas and electricity
Power-to-X: An umbrella term referring to the conversion of meters and is usually an electronic device that records informa- Power units Weight units
electricity to an energy carrier, heat, product or raw material. tion such as consumption of electric energy, voltage levels, cur- • Power is energy per unit of time • ktonnes (kilotonnes) = 1,000 tonnes
Power-to-X includes for example power-to-gas, power-to-liquid, rent, and power factor of an installation or building. They also • Power output is measured in watts (W) • Mt or Mtonnes (megatonnes) = 1,000,000 tonnes
power-to-chemicals and power-to-heat. More specific examples have the ability to send and store meter readings automatically • 1 kW (kilowatt) = 1,000 W
are production of hydrogen, methane, ammonia, methanol, jet and at regular intervals over the internet. • 1 MW (megawatt) = 1,000 kW Voltage
fuel, diesel and using electricity as the primary energy source. • 1 GW (gigawatt) = 1,000,000 kW • 1 kV (kilovolt) = 1,000 volts (V)
SOx: Collective term for sulfphur oxides, sulfur dioxide and
Price areas: The Nordic electricity system is split into 15 price similar sulfur compounds. Energy units
areas (or bidding areas) and generated electricity is always • Energy is power multiplied by time
priced in the area where it is geographically located. Spot market: A market in which trading is conducted for • 1 kWh (kilowatt hour) = 1 kW in one hour
immediate delivery. • 1 MWh (megawatt hour) = 1,000 kWh
Primary energy: Primary energy is the form of energy that is • 1 GWh (gigawat hour) = 1,000,000 kWh
accessible directly from the original sources. Vattenfall uses the Svensk Kärnbränslehantering AB, (SKB): The Swedish • 1 TWh (terawatt hour) = 1,000,000,000 kWh
interpretation applied by Eurostat and IEA. This means that all Nuclear Fuel Management Company, responsible for handling
fuels are assigned a primary energy content corresponding to radioactive waste in Sweden.
Vattenfall Annual and Sustainability Report 2025 214
Other / Definitions of key ratios
Definitions of key ratios
Alternative Performance Measures Underlying operating profit (Underlying EBIT): Underlying Return on capital employed excluding items affecting
operating profit excluding items affecting comparability. comparability (ROCE excl IAC): Underlying operating profit
In order to ensure a fair presentation of the Group’s operations, This measure is intended to provide a more fair comparison divided by average capital employed. Financial target 2030
the Vattenfall Group uses a number of Alternative Performance between periods by excluding items affecting comparability that measures profitability. Refer to Calculation of key ratios
Measures that are not defined in IFRS or in the Swedish Annual that are of an infrequent nature. Refer to Calculation of key below for a reconciliation.
Accounts Act. The Alternative Performance Measures that ratios below for a reconciliation.
Vattenfall uses are described below. The Alternative Perfor- Funds from operations (FFO): Refer to Consolidated statement
mance Measures used are unchanged compared with prior Underlying operating profit before depreciation, of cash flow.
periods except for the following measures that have been amortisation and impairment losses (Underlying EBITDA):
changed or added since Vattenfall’s Annual and Sustainability Operating profit excluding items affecting comparability and Adjusted FFO: New measure since 1 January 2025 that is part
report 2024: depreciation amortisation and impairment losses. This meas- of the financial target 2030, Adjusted FFO/adjusted net debt.
ure enables a more fair comparison between periods. This is Funds from operations excluding dividend attributable to
• Items affecting comparability
enabled by excluding items affecting comparability that are non-controlling interests. Non-controlling interest has been
• Adjusted profit for the period of an infrequent nature and in addition excluding items not excluded as it can’t be used to service debt and to better align
• Adjusted net debt affecting cash flow such as depreciation, amortisation and with the definition used by rating agencies. Refer to supplemen-
impairment losses. Refer to Calculation of key ratios below tary information in connection with the Consolidated statement
• Adjusted FFO (funds from operations)
for a reconciliation. of cash flow for reconciliation.
• Adjusted FFO/Adjusted net debt
Adjusted profit for the period: Profit for the period, attribut FFO/adjusted net debt: Measure has been replaced with
For more information regarding the changes, see the respective able to owner of the parent company excluding fair values and Adjusted FFO/adjusted net debt as financial target regarding
key ratios below. return from the Swedish Nuclear Waste Fund. Vattenfall’s capital structure. Refer to Calculation of key ratios below for
dividend policy is based on this measure. Refer to Calculation a reconciliation.
Operating profit (EBIT, Earnings Before Interest and Tax): of key ratios below for a reconciliation.
The difference between the operating income and the operat- Adjusted FFO/adjusted net debt: Adjusted FFO divided by
ing expenses, including share of profit from associated compa- Interest-bearing liabilities: Refer to Calculation of key ratios adjusted net debt. New financial target 2030 regarding capital
nies and joint ventures. Refer to Consolidated income state- below for a reconciliation. structure. The key ratio is a measure of Vattenfall’s ability to
ment. generate operating cash flow in relation to the level of indebted-
Net debt: Refer to Calculation of key ratios below for ness. The new measure is more in line with the definition used
Operating profit before depreciation, amortisation and a reconciliation. by rating agencies. Refer to Calculation of key ratios below for
impairment losses (EBITDA, Earnings Before Interest, a reconciliation.
Tax, Depreciation and Amortisation): Refer to Consolidated Adjusted net debt: From 1 January 2025, margin calls from
income statement. energy trading are excluded from adjusted net debt. Margin Free cash flow: Cash flow from operating activities less
calls from treasury activities have been excluded previously and maintenance investments. Refer to Supplementary information
Items affecting comparability (IAC): Capital gains and capital are still excluded. The new definition is more in line with the in connection to Consolidated statement of cash flow for
losses from sale of shares and other non-current assets, impair- definition used by rating agencies. Refer to Calculation of key a reconciliation.
ment losses and reversed impairment losses from assets in ratios below for a reconciliation.
operation or under construction and other material items that
are of an infrequent nature. Also included here are changes in Capital employed: Total assets less financial assets, non inter-
the fair value of energy derivatives, which do not qualify for est-bearing liabilities and certain other interest-bearing provi-
hedge accounting. From 1 January 2025, changes in fair values sions which are not included in adjusted net debt. Refer to
of energy derivatives as well as inventory revaluation for propri- Calculation of key ratios below for a reconciliation.
etary trading activities are recognised in the underlying operat-
ing profit to better reflect the overall trading performance. Return on capital employed (ROCE): Operating profit divided
Prior periods have been restated to reflect this change. Refer by average capital employed. Financial target 2025 that meas-
to Calculation of key ratios below for a specification. ures profitability. Refer to Calculation of key ratios below for
a reconciliation.
Vattenfall Annual and Sustainability Report 2025 215
Other / Calculations of key ratios
Calculations of key ratios
Items affecting comparability 1, 2 Net debt1
31 december 31 december
Amounts in SEK million 2025 2024 Amounts in SEK million 2025 2024
Capital gains 680 9,852 Hybrid Capital –20,539 –21,880
Capital losses –65 –1,765 Other interest-bearing liabilities –46,939 –62,718
Impairment losses –1,514 –1,335 Total interest-bearing liabilities –67,478 –84,598
Reversed impairment losses — 15
Cash and cash equivalents 15,931 35,117
Provisions 654 643
Short-term investments incl. margin receivables treasury 39,355 52,004
Unrealised changes in the fair value of energy derivatives –2,766 12,668
Loans to owners of non-controlling interests in foreign Group companies 464 244
Unrealised changes in the fair value of inventories –810 1,528
Net debt –11,728 2,767
Other infrequent items affecting comparability –14 186
Total –3,835 21,792
Adjusted net debt1, 2
Capital employed1 Amounts in SEK million 2025 2024
31 december 31 december
Amounts in SEK million 2025 2024 Total interest-bearing liabilities –67,478 –84,598
Less than 50% of Hybrid Capital 10,270 10,940
Property, plant and equipment 275,353 273,707
Pension obligations –25,122 –27,890
Goodwill 14,848 15,655
Dismantling and other environmental provisions –16,850 –16,526
Intangible assets 4,303 3,607
Provisions for nuclear power (net) –38,776 –44,811
Participations in associated companies and joint ventures 4,912 5,037
Currency derivatives for hedging of debt in foreign currency — —
Deferred and current tax assets 6,846 8,887
Less margin calls received treasury 197 623
Inventories 27,605 27,586
Less liabilities to owners of non-controlling interests 7,645 6,833
Trade receivables and other receivables 35,791 45,047
Adjustment related to assets/liabilities held for sale 39 —
Prepaid expenses and accrued income 16,058 16,593
Adjusted gross debt –130,075 –155,429
Unavailable liquidity 3,890 3,810
Other assets (non-interest-bearing) 3,524 1,972 Cash and cash equivalents and short-term investments incl. margin receivables treasury 55,286 87,121
Total assets excl. financial assets 393,130 401,901 Less margin calls energy trading 5,237 –6,896
Unavailable liquidity –3,890 –3,810
Deferred and current tax liabilities –17,242 –14,952
Adjusted cash and cash equivalents and short–term investments 56,633 76,415
Other non-interest-bearing liabilities –16,979 –16,532
Adjusted net debt –73,442 –79,014
Trade payables and other liabilities –23,995 –35,571
Accrued expenses and deferred income –25,516 –24,790
1. See Definitions and calculations of key ratios for the definitions of the Alternative Performance Measures.
Total noninterest-bearing liabilities –83,732 –91,845
2. The key ratio has been adjusted and prior periods have been restated, see Definitions of key ratios for more information.
Other interest-bearing provisions not related to adjusted net debt1 –5,205 –6,004
Adjustment related to asset/liabilities held for sale 1,055 —
Capital employed 305,248 304,052
Capital employed, average 304,650 313,047
Vattenfall Annual and Sustainability Report 2025 216
Other / Calculations of key ratios & Financial calendar
Financial targets1
Return on capital employed Underlying EBIT 30,937
excl. items affecting = 100 x = 10.2
Capital employed, average 304,650
Financial calendar 2026
comparability, %
Adjusted FFO 39,224
Adjusted FFO/adjusted
= 100 x = 53.4
net debt, % Adjusted net debt 73,442
Other key ratios1
Return on equity, % = 100 x
Profit for the period attributable to owner of the parent company
Average equity attributable to owner of the parent company
excluding the hedging reserve
18,614
176,077 = 10.6 28 April
Annual General Meeting Contacts
FFO + financial expenses excluding discounting effects
29
attributable to provisions 46,317
FFO interest cover, (times) = = 10.4 Åsa Jamal, Communications
4,470
Financial expenses excluding discounting effects attributable
to provisions
April [skjult]@vattenfall.com
tel +46-8-739 50 00
Interim report January–March
Net debt 11,728
Net debt/EBITDA, (times) = = 0.2 Annika Ramsköld, Sustainability
17
EBITDA 49,236 [skjult]@vattenfall.com
Adjusted net debt 73,442 tel +46-8-739 50 00
Adjusted net debt/ EBITDA,
= = 1.5 July
(times) EBITDA 49,236
Interim report January–June Emmi Östlund, Group Control
27,102 and Investor Relations
EBIT
29
Return on capital employed, % = 100 x = 8.9 [skjult]@vattenfall.com
Capital employed, average 304,650 tel +46-8-739 50 00
FFO 41,847 October
FFO/adjusted net debt2 , % = 100 x = 53.2
Adjusted net debt 78,678 Interim report January–September
1. See Definitions and calculations of key ratios for the definitions of the Alternative Performance Measures.
2. Previous financial target, adjusted net debt has not been updated according to the new definition 2025.
About Vattenfall’s financial reports
Vattenfall’s financial reporting includes interim reports, the year-end report and the annual report. In addition
to these reports, the company issues financial information via press releases and on Vattenfall’s websites.
Vattenfall’s Annual and Sustainability Report 2025 is published in Swedish and English. All financial reports
are available on Vattenfall’s websites. The reports are only available digitally for downloading and can therefore
not be ordered in printed versions.
Vattenfall Annual and Sustainability Report 2025 217
Other
Forecasts and forward-looking statements
This document contains forward-looking statements that are based
on Vattenfall’s current expectations. Even if Vattenfall’s management
believes that these expectations are reasonable, no guarantee can be
made that these expectations will prove to be correct. The forward-
looking statements herein pertain to risks and uncertainties that could
have a material impact on future earnings. The statements are based on
c ertain assumptions, including such that pertain to financial conditions
in general in the company’s markets and the level of demand for the
c ompany’s products. The outcome may vary significantly compared with
what is presented in the forward-looking statements, depending on,
among other things, changed conditions regarding the economy, mar-
kets and competition, legal requirements and other political actions and
variations in exchange rates, as well as other factors referred to in the
administration report. This English version of Vattenfall’s Annual and
Sustainability Report is a translation of the S wedish original, which is the
binding version.
Rounding differences may occur in this document.
Photos
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Hägglund, Matthias Ibeler, Bosse Johansson, Johanna Kassel, Peter
Knutson, Jennie Lind, Oskar Lind, Samuel Linde, Jorrit Lousberg, Viktor
Marchuk, Felix Odell, Rolf Otzipka, Johan Sandberg, Dan Sjunnesson,
Rickard Sund, Alex Viklander, Charles Walker, Annika Örnborg and more.
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Vattenfall Annual and Sustainability Report 2025
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