Strategy Enersense is a key contributor to the energy transition through its profitable and growing business operations. The company’s strategic goal is to expand in the value chain from being a broad-based service company in the energy sector to being a producer of zero-emission energy and a key green energy company. In addition to continuous development and improvement of own operations, the tools to achieve the goals also include investments, M&A as well as ensuring financing arrangements relating to the own energy production capacity. During the next few years, the goal is to actively seek various kinds of equity-based financing arrangements to enable value chain expansion. Enersense's strategic focus areas for 2023–2027 Capture growth in energy transition Enersense focuses on growth in energy transition by building wind and solar PV generation business, penetrating offshore wind foundation markets, and ramping up EV charging business. Opportunities in energy storage are also examined. Develop and maintain efficient core business operations The company’s core operations include design, installation, construction and operation and maintenance services in the fields of energy, maritime transport, industry and telecommunications infrastructure. Continuous improvement of the end-to-end business operations are ensured in order to drive customer value, competitiveness and profitability. Smooth integration of acquired businesses is also ensured. Ensure skilled people and expertise to make a difference The best expertise and competences for current and new businesses are built, and new talents are acquired to join the company to fill the identified gaps. Enersense way of working (eWoW) Company wide leadership principles, common operational model, and digitalized processes across the businesses are built to provide solid foundation for growth. Develop ESG as core of Enersense’s operations Environmental, social and governance targets and actions are developed and deployed in the core of business to foster responsibility, and to comply with regulatory, customer and investor requirements. In 2023, Enersense decided to make a commitment to the Science Based Targets initiative (SBTi). In connection with this, Enersense decided to align its previous carbon neutrality target up to 2030, concerning its own operations, with its near-term SBTi-compliant emissions reduction target. Enersense is committed to setting science-based near-term emissions reduction targets by the end of 2025. Operating environment The energy and the green transition are global phenomena increasingly driven by stricter EU-level and national climate targets, the legislation and steering mechanisms related to the targets and the opportunities offered by clean, but at the same time competitive technologies. As a result of the recent changes in the geopolitical situation, much attention has also been paid to matters related to energy self-sufficiency, which may also promote the energy transition. The climate targets and the related political and financial instruments steer investments towards energy systems based on low-emission and renewable energy. The energy transition is also driven by competitive energy production technologies, especially wind and solar power, which enable a cost-effective transition towards low emissions. The climate targets and renewable and local energy are also linked to energy self-sufficiency, and renewable energy sources can be used to end or reduce dependence on imported fossil fuels. Energy and electricity production will be increasingly based on renewable energy sources, which means local and decentralised but also weather-dependent production. A sustainable and effective energy system calls for investments in energy production plants and transmission grids, as well as short- and long-term energy storage systems. Electricity production based on renewable energy enables the energy transition in other sectors through electrification and green hydrogen. The electrification of transport calls for charging infrastructure, emissions from industrial processes are cut through electrification or by using clean hydrogen instead of fossil fuels, and various heat pump solutions are used for heating buildings. In addition, industrial processes are being made more energy- and resource-efficient. Energy systems and various end users – industry, transport and heating – will be even more closely linked together. The effective and reliable transfer of data between different sectors plays a key role in controlling, optimising and developing systems smartly and effectively. The up-to-date and reliable data transfer infrastructure of society is a key enabler of the energy transition, and its significance is highlighted during crises. The ongoing transition is creating significant business opportunities for companies in different parts of the entire energy sector’s value chain, and the development will be accelerated by the level of ambition and goals, particularly in the EU and Finland. In the short term, uncertainty and risks may be caused by the general economic situation, inflation, geopolitical instability and their impact on the energy markets and systems. Risks and opportunities related to climate change Enersense’s business operations are closely linked to the implementation of the energy transition. The company’s core operations include design, installation, construction, operation and maintenance services in the fields of energy, maritime transport, industry and telecommunications infrastructure. In addition, the company has three strategic focus areas: • Turnkey deliveries of high power charging systems for electric transport based on proprietary technologies, as well as installation and life-cycle services for charging devices based on other equipment suppliers’ technologies • Comprehensive deliveries of offshore wind power plant foundations • Development of Enersense’s own wind and solar power production. Opportunities related to the energy transition: Increased demand for green energy solutions creates significant business opportunities for Enersense, as the implementation of the energy transition increases investments related to clean technology and a sustainable energy system (wind power, solar power, battery storage, green hydrogen, electricity transmission, carbon capture and electrification solutions for processes, transport and heating, as well as energy efficiency investments). Weather fluctuations increase with climate change, creating pressure to strengthen critical infrastructure such as local energy production and energy transmission, as well as storage Risks related to the energy transition: On the other hand, the company must also be prepared for negative changes brought about by climate change. Changes in environmental, climate and energy regulations and legislation may cause uncertainty in customers’ investment behaviour and decision-making. Stricter regulations may also increase costs through increased reporting requirements, for example, and some customers’ business operations may decrease if the requirements related to regulations cannot be met. The purpose of climate regulations is to steer capital towards sustainable investments. This may reduce investments in companies that are not leaders in environmental, climate and energy matters. Different requirements in different countries (e.g. EU vs. non-EU) have also been identified as a risk, particularly in terms of international procurement chains.
