The strategy update follows the renewed letter of expectations from the Group’s shareholder – the Republic of Lithuania, represented by the Ministry of Finance. This sets the expectation for the consistent and sustainable growth of Ignitis Group through the modernisation of its energy infrastructure and the further development of its green power generation portfolio.
Commenting on the Strategy, Ignitis Group Chairman of the Supervisory Board Darius Daubaras said: “This renewed long-term corporate strategy demonstrates Ignitis Group’s continued commitment to decarbonization, through the modernization of the energy system, the development of renewable energy and innovation. These commitments also reflect the expectations of shareholder and other stakeholders for the Group’s strategic priorities: ensuring a reliable energy system, developing green energy capacities and innovations, and sustainable development, adhering to the globally recognized environmental and social responsibility and good governance principles.”
Ignitis Group aligns its business goals with the United Nations’ Sustainable Development Goals and is committed to reduce net carbon dioxide (CO2) emissions to zero by 2050.
The renewed strategy of Ignitis Group is also aligned with the targets of Lithuania’s National Energy Independence Strategy. This includes the adoption of smart metering, innovative technologies and the digitisation of the Lithuanian energy sector, as well as the development of additional green energy generation capacity (including offshore in the Baltic sea) and synchronization with continental European energy grids. By continuing to modernize networks and maintain flexible generation capacity, the Group stands by it’s commitment to ensure resilience and flexibility of the energy system while supporting the energy transition.
Active development of green generation remains key priority of sustainable development for the Group. Ignitis Group targets 4 GW of installed green generation capacity by 2030 while creating value for shareholders. Within green generation, Ignitis Group remains focused on pursuing new opportunities in onshore and offshore wind, waste to energy, biomass and solar technologies. The Group is also looking to maintain leadership in its home markets – the Baltic countries, Poland and Finland – and will explore new opportunities in countries which are in the energy transition path.
Financial discipline remains central to Ignitis Group’s strategy. The Group targets levered equity returns between high single-digit to low double-digit for its investments, depending on risk profile, and aims to deliver dividends in line with its growth. The Group will target a solid investment-grade rating of BBB and above, and Net Debt to EBITDA ratio of < 5x.
Darius Maikštėnas, Chairman of the Board and CEO of Ignitis Group, said: “We are transforming our company to create the leading green energy business in the region and create a more sustainable world. In everything we do, we are united by our mission to make the world energy smart: greener, more secure and open to innovation. The culture and values of our organization drive the engagement of our people and the agility of our teams to deliver on the strategy.”
Together with the updated long-term corporate strategy, Ignitis Group presents its strategic plan for 2020-2023. The strategic plan includes additional details on the near-term goals and objectives of the company. These goals and objectives will be reviewed and assessed annually.
The documents of the Strategy and the Strategic plan for 2020-2023 can be found on the Ignitis Group’s website, at: https://ignitisgrupe.lt/en/strategy.
