ENGIE Group refocuses strategy to accelerate growth in renewables and infrastructure
In line with its strategy to play a key role in the energy transition and its Purpose, announced in May “to act to accelerate the transition towards a carbon-neutral world, through reduced energy consumption and more environmentally friendly solutions, reconciling economic development with a positive impact on people and the planet”, the ENGIE Group’s Board has announced three strategic orientations for the sustainable growth of the company and its simplification with a view to spearheading the energy transition.
Acceleration of investments in renewables and infrastructure
ENGIE intends to implement a new strategy for allocating capital, focusing on the growth of initiatives directly linked to the energy transition:
– to accelerate the growth in the development of renewable energy, increasing the global plan from an annual expansion of 3 GW to 4 GW.
– to capture opportunities through the development of biogas and hydrogen under the European Green Recovery Plan.
– to accelerate the growth in decentralized infrastructure assets such as urban heating and cooling networks and onsite power generation.
Strategic review of part of the Solutions business
Offering innovative low-carbon solutions, ENGIE has established itself as a leader in the energy transition and developed a broad portfolio of activities.
The Board has decided to conduct a review of the Solutions activities to maximize their value, reinforce their leadership position and to seize future growth opportunities through a coherent perimeter and adapted organization.
Significant enhancement of the divestment program to fund future growth in renewable energy 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 assets.
Overall, this could lead the ENGIE Group to potentially double its previously announced divestment program of approximately 4 billion euros over the medium term.
A comment from ENGIE Brasil’s CEO, Mauricio Bähr
“Brazil is a country which is key to the global success of ENGIE and the Group has given us the conditions to grow in a solid, consistent and sustainable way in renewables and infrastructure. Sufficient is to see the investments recently made in the acquisition of TAG and in the construction of wind power complexes and transmission lines. As for Solutions, we had already been restructuring this area of business in Brazil to focus on the activities which the Group sees as most relevant to the energy transition whether in relation to companies or entire territories.”
ABOUT ENGIE
ENGIE is a global reference in low-carbon energy and services. With its 97,000 employees, its customers, partners and stakeholders, the Group is committed to accelerate the transition towards a carbon-neutral world, through reduced energy consumption and more environmentally-friendly solutions. Inspired by its purpose (“raison d’être”), ENGIE reconciles economic performance with a positive impact on people and the planet, building on its key businesses (gas, renewable energy, services) to offer competitive solutions to its customers. Turnover in 2022: 82.6 billion Euros.
In Brazil, ENGIE, leader in 100% renewable power generation in the country, operates in generation, commercialization and transmission of electric power, gas transport and energy solutions. The Company
has in the country an installed capacity of 12,5 GW, originated from renewable sources and with low GHG emissions, such as hydro, solar and biomass power plants, and windfarms.
With the acquisition of Transportadora Associada de Gás – TAG, ENGIE now also owns the largest natural gas transportation network in the country, at 4,500 km and transecting 10 states and 191 cities.
The Group has a complete portfolio of integrated solutions focused on reducing costs and improving the infrastructure for companies and cities, such as energy efficiency, public lighting, energy monitoring and management.
With 2,800 employees, ENGIE’s turnover in Brazil in 2023 was of R$ 11.7 billion. ENGIE trades on the B3 through its energy generation and trading company, ENGIE Brasil Energia, under the ticker EGIE3. In addition to being a B3 Novo Mercado component, the Company is one of the very few companies that have been listed in the Business Sustainability Index since its creation in 2005. In 2021, ENGIE Brasil Energia was included in the Carbon-Efficient Index (ICO2), made up of IBrX 100 companies that are most transparent in terms of GHG emissions reporting and how they are preparing for a low-carbon economy.
The company also received in May 2024 the certification Great Place to Work, a recognition which validates the continuous commitment of the company to create a positive and inclusive work environment for all.
The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, Euronext 100, FTSE Euro 100, MSCI Europe) and non-financial indices (DJSI World, Euronext Vigeo Eiris – Europe 120/France 20, MSCI EMU ESG screened, MSCI EUROPE ESG Universal Select, Stoxx Europe 600 ESG-X).