• Acceleration of investment in renewables and infrastructure assets
• Strategic review of part of the Client Solutions business
• Significant enhancement of the divestment programme to fund future growth
In line with its purpose (“raison d’etre”) towards carbon neutrality, and with a view to simplifying the Group, the Board approved the following strategic orientations :
Acceleration of investments in renewables and infrastructure assets
ENGIE intends to implement a new capital allocation strategy, focusing on two growth areas
servicing the energy transition.
ENGIE plans to accelerate its development in renewables, by increasing the target for
renewables capacity commissioned 3 GW p.a. currently to 4 GW p.a. on average over the
medium-term, while increasing the number of renewables projects retained on its balance
sheet. The Group will also capture opportunities resulting from recovery plans announced in
Europe, notably related to the development of green gases (biogas and hydrogen). This
strategic move will strengthen the Group’s position as a key player in low-carbon energy and in the decarbonisation of energy systems.
Leveraging on its longstanding expertise, ENGIE will further accelerate its growth in
decentralised infrastructure assets such as urban district heating and cooling networks and
on-site power generation. The Group will also seek to rebalance its exposure to French and
international gas and electricity networks.
Strategic review of part of the Client Solutions business
Offering innovative low-carbon solutions to its clients, ENGIE has successfully built a solid
leadership position and developed a very wide and diversified portfolio of activities.
Decentralised infrastructure assets (e.g. district heating and cooling networks, on-site low
carbon power generation) and related services, mostly benefit from long-term contracts and
help clients achieve their energy transition targets.
The Board decided to conduct a strategic review of the other activities representing
approximately 2/3 of Client Solutions revenues. These activities will be assessed in light of
their coherence with the strategic priorities of the Group. All options will be considered with a view to maximizing their value and reinforcing their leadership position, and to seize future growth opportunities through a coherent perimeter and adapted organisation.
Significant enhancement of the divestment programme to fund future growth in
renewables and infrastructure assets.
The Group will consider opportunities to divest non-core businesses and minority stakes in
order to increase financial flexibility to fund investments in renewables and infrastructure
Overall this could lead ENGIE to potentially more than double its previously communicated
asset divestment programme of around EUR 4 billion over the medium-term. The
implementation of these strategic orientations will be presented in the first half of 2021.
Jean-Pierre Clamadieu, Chairman of ENGIE said: “ The Board intends to strengthen ENGIE’s
capacity to play a key role in the energy transition. To this end, it is fundamental to clarify the Group’s organisation and strategic priorities, including from a geographical standpoint. This is the essence of the direction that we are presenting today and that will constitute the roadmap for the new CEO, to be announced soon. The appointed employee representatives will be regularly informed and consulted on projects that may result from the strategic review of Client Solutions' activities and on potential divestment projects before any decision is made. ”