Strategy

Wärtsilä’s purpose is to enable sustainable societies with smart technology. The demand for clean and flexible energy, and the need for efficient and safe transportation are increasingly affecting the way that customers operate. This forms the basis for Wärtsilä’s Smart Marine and Smart Energy visions.

Wärtsilä’s profitable growth ambitions are supported by its strong presence in key markets and a superior global service network. An integrated portfolio of services, systems, and products that covers customer needs throughout the full lifecycle positions Wärtsilä well to respond to the demand for energy efficient and innovative solutions. Emphasis is given to optimising performance through upgrades, modernisations, fuel conversions, and safety solutions, and to using data analytics and artificial intelligence to support customer business decisions. Connectivity and smart technology play a key role in the optimisation of assets, and in providing strategic input to customers in order to enhance their business growth. Asset management will drive future growth in lifecycle solutions and enable new “as-a-service” business models.

With its flexible production and supply chain management, Wärtsilä constantly seeks new ways to maintain high quality and cost efficiency – often in cooperation with customers and leading industrial partners. Investments in research and development, specifically in digitalisation, create a strong foundation for securing and strengthening the company’s position at the forefront of market innovation. Customer value creation through collaboration and knowledge sharing are also key components in Wärtsilä’s innovation activities.

This innovative culture, together with a constant emphasis on safety, diversity, and high ethical standards, attracts skilled and committed people and creates the basis for a high performing organisation. The focus on operational excellence identifies Wärtsilä as being easy to do business with, and drives increased productivity and efficiencies for its customers.

Strategy implementation

Smart Marine

Wärtsilä’s aim is to lead the maritime industry’s transformation towards a Smart Marine Ecosystem. Building on the sound foundation of being a leading provider of innovative products, integrated solutions, and lifecycle services to the marine and oil & gas industries, Wärtsilä delivers new sources of value to customers through connectivity, digitalisation, and the use of smart technologies.

The maritime industry has ambitious environmental targets and is increasingly aware of the necessity of this transformation. Wärtsilä and other players across the industry are collaborating on introducing new technologies and cleaner fuels to accelerate the path towards decarbonisation. Further opportunities arise from eliminating major sources of inefficiencies, such as overcapacity, inadequate port-to-port fuel efficiency, and the time wasted waiting to enter ports and other high traffic areas.

Wärtsilä’s three marine businesses, along with their customers and partners, are ideally positioned to achieve positive disruptive development:

  • Marine Power creates a commercially viable path towards decarbonisation by providing fuel efficient power systems that can be upgraded throughout the assets’ lifecycle to run on low-carbon and/or carbon-neutral fuels.
  • Marine Systems develops technologies, products, and solutions related to the gas value chain, exhaust treatment, shaft line services, and marine electrical integrations. The aim is to enhance safety and energy efficiency, while lowering emission levels.
  • Voyage provides the technology to optimise fleet performance and enhance the safety of operations through real-time ship-toshore communication, connected navigation, and the provision of automation and smart autonomy solutions.

By applying smart technology and performance optimisation services, Wärtsilä delivers greater efficiencies, a minimised climate impact, and a higher level of safety to the shipping industry. This will result in more sustainable, safe, and profitable operations for ship owners and operators around the world.

Smart Energy

The energy landscape is in transition towards more flexible and sustainable energy systems, driven by the decreasing cost of new technologies. Wärtsilä’s objective is to be its customers’ most trusted partner in unlocking the value of an optimised energy transition by providing essential technologies, services, and solutions for sustainable, reliable, and affordable power systems.

Integrating renewables within power systems is increasing the demand for flexible power solutions, with flexible gas generation and energy storage at the forefront. Digitalisation throughout the industry brings new opportunities for predicting consumption and maintenance needs, and can improve competitiveness.

Wärtsilä is at the very core of future energy systems. Its flexible power generation solutions provide a unique combination of energy efficiency, fuel and operational flexibility, high reliability from peaking to baseload applications, and a readiness to adopt future synthetic and renewable fuels. The energy storage and advanced optimisation software offering provides further growth opportunities. With its broad range of highquality energy services, Wärtsilä enhances the business performance of power generation companies by optimising power plant performance across the lifecycle. The goal is to secure customer investments with guaranteed power plant availability and reliability.

Wärtsilä aims to continuously develop optimal, environmentally sound, and commercially viable solutions for customers by focusing on its core competences: market understanding and modelling, system optimisation, technological leadership, engineering, procurement, and construction capabilities, and lifecycle support.

Sustainability

Economic
Wärtsilä aims to meet shareholder and customer expectations, and contribute towards the well-being of society. This requires efficient, profitable, and competitive company operations. Good economic performance establishes a platform for the other aspects of sustainability – environmental and social responsibility.

Environment
Wärtsilä’s aim is to be a forerunner in sustainable innovation and furthermore reduce emissions in our customer’s operations and in societies overall. Wärtsilä supplies smart technologies and services that help to mitigate climate change and protect our oceans and seas. We continuously work on achieving high environmental standards in our operations, and improving the environmental performance and efficiency of our products and solutions through R&D, collaboration, partnerships, and active engagement in ecosystems. In doing this, we help our customers and society at large to meet the goals of the tightening global environmental regulations and guidelines.

Social
We have high ethical standards and we care about the communities in which we operate. Our business operations and relations with our stakeholders are governed by our Code of Conduct. Wärtsilä is a responsible employer, and we seek to offer our employees an interesting and exciting workplace where openness, respect, trust, equal opportunities, and scope for personal development prevail. A further aim is to offer a hazard-free working environment to our employees and contractors, and to minimise the health and safety risks associated with the use of our products and services. Through effective supply chain management and continuous development, we strive to ensure that our values expressed in the Code of Conduct are promoted in our whole value chain.

Strategy implementation in 2020

Despite the COVID-19 related disruptions to business operations, Wärtsilä’s commitment to R&D activities has remained unchanged. The year saw progress in futureproofing engine technology in line with the global trend towards the decarbonisation of the energy and marine markets. This was demonstrated by the initiation of fullscale testing of ammonia as a fuel in Wärtsilä’s four-stroke combustion engine, as well as with the announcement of efforts to develop the combustion process in gas engines to enable them over time to burn 100% hydrogen fuel. Several new concepts utilising connectivity and digitalisation to enhance efficiency, sustainability, and the safety of customer operations were also introduced. These included solutions for smart navigation, remote support services, as well as a cloud simulation platform enabling remote training. For the energy markets, Wärtsilä launched the Energy Transition Lab, an open-data platform for the energy industry to understand the impact of greater utilisation of renewable energy and the effects of COVID-19, and help accelerate the energy transition.

Wärtsilä’s emphasis on developing solutions utilising the latest technology, in line with its Smart Marine and Smart Energy strategies, resulted a number of important orders during the year. In the marine markets, Wärtsilä received several orders for hybrid solutions, including a contract to supply a fully integrated Wärtsilä hybrid solution for Misje Rederi’s three newbuild eco-friendly 5,000 DWT bulk carriers. Moreover, the order from UltraShip Denmark to install the cloud-based Wärtsilä Fleet Operations Solution (FOS) across their entire fleet demonstrates market development towards digital solutions to improve efficiency and lessen environmental impact. In the energy sector, the need for flexible power solutions to support the expansion of renewable energy and secure grid reliability was illustrated by the resilience of activity in the energy storage markets. Awarded contracts included the first order for the GridSolv Quantum energy storage system, a fully integrated modular and compact solution that enables the rapid deployment of cost-effective energy storage. Another order reflecting the benefits of flexibility was the contract received in Europe to deliver four natural gas driven power plants with a combined output of nearly 300 MW. The new fast-starting plants will provide flexible system balancing as more renewable power is incorporated into the power system.

Collaboration with industry stakeholders is an essential element in the development of technologies needed to meet changing market requirements. Joint efforts included agreements aimed at accelerating the marine industry’s ongoing digital transformation, developing autonomous shipping, and exploring the use of new technologies and alternative fuels to promote decarbonisation efforts.

While the health and safety of personnel is a continuous priority for Wärtsilä, it reached a new level of importance in 2020 with the onset of the global COVID-19 pandemic. Wärtsilä maintains a diverse global workforce with thousands of employees performing tasks onsite, either in the field or at customer premises. By establishing a global crisis response team and local country incident management teams, it was possible to monitor and act upon the rapidly developing situation. Global mobility was secured whilst observing appropriate safety and precautionary measures. Numerous Wärtsilä employees resorted to performing their work remotely. In order to accommodate this way of working, and to ensure that the change of routine functioned smoothly, Wärtsilä provided employees with digital collaboration tools and methods. Furthermore, guidelines and devices were provided to secure an appropriate working environment at their homes. Zero lost-time injuries continues to be the company’s global target. During 2020, lost-time injury frequency was 2.03 (2.25), which represents a decrease of 10% compared to the previous year.

© 2021 Wärtsilä