OUR VISION, PURPOSE
AND STRATEGY

SSE’s vision is to be a leading energy company in a low-carbon world. Its purpose is to provide the energy needed today while building a better world of energy for tomorrow. And its strategy is to create value for shareholders and society from developing, operating and owning energy and related infrastructure in a sustainable way. This strategy, which is underpinned by a commitment to strong financial management, is built on four pillars.

Strategic priority #1

Focusing on the core

SSE’s core, low-carbon businesses are the engine rooms of its strategic delivery. Earnings derived from renewable sources of energy and regulated energy networks account for the majority of Group operating profit, and it is these businesses that are best placed to seize the opportunities presented by decarbonisation and electrification.

Changes to SSE’s business structure implemented from 1 April 2019 have created strong focus for individual business units and clear visibility of value. In particular, SSE is consolidating the development and operation of all its renewable energy assets under single management in a business to be known as SSE Renewables. This new model also gives greater focus to the specific requirements of SSE’s Distribution and Transmission networks businesses, which are vital low-carbon enablers.

These low-carbon renewables and networks businesses are supported by thermal generation plant that provides vital flexibility complementing the variability of renewables output during the low-carbon transition, and retail operations that provide key energy services for customers and secure valuable routes to market for SSE’s generation fleet.

Strategic priority #2

Developing, operating owning

At the very heart of SSE’s strategy is a commitment to developing, operating and owning the assets that create lasting value and are vital to the low-carbon transition. It has world-class assets, a coveted pipeline of opportunities, and skills and sector experience in project development, procurement, construction management, operations, customer service and finance that enhance value for both shareholders and society.

An increased investment appetite for low-carbon electricity assets presents opportunities to form new financial partnerships and create value from successful development and operation of assets. This fits with a strategy of developing and operating, but not always wholly owning assets. Timely capital recycling will continue to be an important feature to realise value from development while retaining key stakes so SSE can add value from operations and retain options for future growth.

Growth could also come from areas beyond SSE’s home markets in Great Britain and the island of Ireland, where new or adapted technologies might provide opportunities for growth subject to SSE’s strict capital discipline.

Strategic priority #3

Creating Value

A strategy of developing, operating and owning creates value for shareholders. A dividend commitment built on world-class assets, growth options and the skills and experience SSE has in low-carbon technologies fairly remunerates shareholders for their continued investment. As was seen in 2018/19, successful transactions can also create substantial value to finance further investment for growth and discretionary share buybacks, or contribute to the management of net debt.

The same strategy also creates real, lasting value for society. SSE makes a significant contribution to the economies it operates in by paying the right amount of tax, at the right time, in the right place. SSE also makes significant economic contribution to the countries in which it operates by sustaining and creating quality jobs, paying fair wages, committing to tax transparency, supporting indigenous supply chains, providing community investment funds and delivering infrastructure to support the transition to a low carbon economy.

Strategic priority #4

Being sustainable

  • Climate action:

    Reduce the carbon intensity of electricity generated by 50% by 2030, compared to 2018 levels, to around 150g/kWh.

  • Affordable and clean energy:

    Develop and build by 2030 more renewable energy to contribute renewable output of 30TWh a year.

  • Industry, innovation and infrastructure:

    Build electricity network flexibility and infrastructure that helps accommodate 10 million electric vehicles in GB by 2030.

  • Decent work and economic growth:

    Be the leading company in the UK and Ireland championing Fair Tax and a Real Living Wage.

A sustainable company is one that offers profitable solutions to the world’s problems. In support of its vision, purpose and strategy, SSE has adopted four fundamental business goals for 2030 which are directly aligned to the United Nations’ Sustainable Development Goals.

Through its goals, the UN has created a blueprint for a sustainable world – and it is one that SSE is putting at the forefront of its business, with a strategy that is geared to delivering decarbonisation and to enabling the Group to realise its vision of being a leading energy company in a low carbon world.

Climate action: Reduce the carbon intensity of electricity generated by 50% by 2030, compared to 2018 levels, to around 150g/kWh.

Affordable and clean energy: Develop and build by 2030 more renewable energy to contribute renewable output of 30TWh a year.

Industry, innovation and infrastructure: Build electricity network flexibility and infrastructure that helps accommodate 10 million electric vehicles in GB by 2030.

Decent work and economic growth: Be the leading company in the UK and Ireland championing Fair Tax and a real Living Wage.

Sustainability Summary 2019Sustainability Summary 2019