The Wärtsilä Way
Our strategy, The Wärtsilä Way, answers three questions in terms of company direction: why, where and how. The Wärtsilä Way defines our purpose, target position, strategic priorities, and values.
The way forward is guided by the purpose: it describes the reason why our company exists and sets the direction for how everyone at Wärtsilä can make a difference for the world. Wärtsilä’s purpose is “Enabling sustainable societies through innovation in technology and services”.
The target position, "Shaping the Decarbonisation of Marine and Energy", reflects our ambition as a company: where does Wärtsilä want to be in the long term. Wärtsilä’s target position is focused on customers, people, and performance.
The strategic priorities define Wärtsilä’s most important focus areas in order for us to reach the target position. They outline the company direction in terms of reaching profitable growth, and clearly formulate the biggest opportunities for a positive impact on Wärtsilä's performance. The values unite everyone at Wärtsilä and bring the strategy to life by guiding our behaviour when working together. Wärtsilä’s values are Customer success, Passion, and Performance.
WÄRTSILÄ’S STRATEGY IS BASED ON TWO KEY THEMES: TRANSFORM AND PERFORM
The decarbonisation transformation of both the marine and energy sectors is accelerating. It will be made possible by numerous new technologies and alternative fuels. Wärtsilä is set for performance and is well-positioned to drive this transformation. Led by the key themes, we are embarking on a new phase in Wärtsilä’s development – Shaping the decarbonisation of marine and energy.
Decarbonisation creates new business opportunities
Decarbonisation will transform the world and creates new business opportunities both in marine and energy. In marine, there will be an unprecedented rate of change in new build and existing fleet. Regulations and the demand for green transport will accelerate change. In energy, electricity generation is expected to grow by 3X and renewables by 8X by 2050. By 2030, the balancing power market is expected to grow by 10X. As a technology leader in the decarbonisation transformation, Wärtsilä has significant value creation potential as a pioneer and leading partner for decarbonisation. The company is the front-runner in sustainable fuel technologies, for both carbon neutral and zero carbon fuels, such as biofuels, methanol, ammonia, and hydrogen blends, while at the same time delivering technologies that maximise energy efficiency when using fossil fuels. Wärtsilä has a leading position in power system optimisation of different generating assets, where both energy storage and thermal balancing power solutions play a key role. In marine, Wärtsilä is a pioneer in electric drivetrains, carbon capture solutions, and in digital offerings related to marine optimisation. The company is also partnering up to offer complementary technologies for the decarbonisation transformation.
Wärtsilä is well-positioned to leverage market recovery and growth. The organic growth is driven by opportunities in decarbonisation, as well as in services. This organic growth is complemented by potential partnerships and synergistic bolt-on acquisitions. The existing installed base provides a strong foundation for services growth. Moving up the service value ladder has significant growth potential, both in marine and energy, and is supported by our strong offering in the transactional services business, and by performance-based agreements. The green transformation provides a notable opportunity for retrofits and conversions. We focus on performance excellence and robust execution, building on transparency and accountability in our businesses. All our businesses have clear profit and loss responsibility, enabling decisions to be made closer where customer value is created. To create sustainable long-term value, we foster high performing teams with focus on continuous improvement. In doing so, we believe in attracting and retaining the best talent whom we care about and develop. The strong balance sheet and financing structure support the strategy execution. Wärtsilä has clear financial targets and a strong commitment to realise them. With clear capital allocation principles and active portfolio management, we are set to deliver long-term shareholder value.
Our strategic priorities define our most important focus areas to reach our target position "Shaping the Decarbonisation of Marine and Energy". The priorities outline the main areas we will work with to get to our target position and clearly formulate our biggest opportunities that have a positive impact on our growth and financial performance.
Read more in Wärtsilä's Annual Report 2021