Power to the people

The ceo of Swedish energy firm Vattenfall, Anna Borg, is a positive presence in an industry that can seem rather glum. Though many energy firms are facing heat over sustainability practices and the role that they play in climate change and energy security, Borg seems almost glowing about their potential. She’s also rather sparky in person. Unmissable in her double-breasted purple blazer and chunky Chanel shades, she cuts a dash in the autumn sun, brass buttons glinting as she heads to meet monocle on an island in the Stockholm archipelago.

“It’s possible to live a modern, comfortable life with an acceptable climate footprint,” she says between panel discussions at a conference hosted by the Stockholm Chamber of Commerce. “We [Vattenfall] want to work towards fossil freedom,” she adds, settling at an outdoor table beneath a windswept fir tree. “It’s a necessary and good thing to do – and it’s what it will take to be competitive in the future.”

Borg joined the Swedish energy giant in 1999. Barring two years away (she joined Swedish technology firm Klarna between 2015 and 2017 before returning), she rose from cfo to the top job in 2020. Here’s what the woman in charge of one of Europe’s largest energy producers and retailers thinks about the future of fossil fuels, why there is no need to scare people and why we should still be optimistic about the industry. — L

We waste a lot of energy. Do customers need to accept sacrifices or should that fall to producers and suppliers?
I’m not so sure that it’s about making sacrifices. What’s needed in the green transition are investments on top of existing investments [in other technologies]. This is something that’s happening around the world: companies in the Nordics, Europe, Asia and the Middle East are all funding green transformation. The cost curve is trending downwards. Markets have realised that anything with a fossil footprint is risky, so they’re moving money into eco-friendly technology. Offering consumers products and services that are attractive and acceptable from a climate perspective is a wise, natural move. That’s where the opportunity lies, not in scaring people into something else.

That’s reassuring to hear. But fossil fuels aren’t going anywhere any time soon. Should we also be thinking more in terms of the fuel mix?
We need to have a conversation about options. The starting point is different depending on where you are. Energy is produced from natural resources and those vary in places across the world. We’re in a fortunate position in Sweden because our energy system is practically fossil-free. We only have to meet the increased demand in order to electrify our industries, transportation and so on. In some parts of the world, you have to work on transforming the energy system while also meeting this increased power demand. So it’s not really about whether we use nuclear or renewable energy or carbon-capture systems for oil and gas. We’re going to need all the technologies that we can get our hands on. Then it will then be about which technologies win out or whether they can support each other rather than compete. They all have different pros, cons and capabilities. Some are more stable or volatile. Some are less expensive or better at integrating and interacting with others. But there will also be technologies that we aren’t as aware of because they haven’t yet been commercialised.

I take your point about only seeing so far. But what are you excited about? Is there anything new on the market or interesting conversations around storing energy?
Costs are decreasing across the sector. Solar panels are very cheap now compared to what they were a decade or two ago. The same will happen when it comes to offshore and onshore wind turbines, and nuclear developments. Nuclear energy can produce a lot of power with a fairly small physical footprint. All of this comes down to how we can utilise the grid in the most efficient way to be able to provide electricity and energy where and when it’s needed, and at an acceptable cost.

Conflict in Europe and the Middle East and the arrival of forthcoming arrival of winter in the northern hemisphere are fuelling discussions about energy security. How are global events changing conversations in the industry?
Energy – and access to it – has been used as a weapon in many conflicts. There’s an awareness in Europe about the need to be more self-sufficient. Europe wants to be more independent but we still live in a globalised, international world. The regionalisation of power, commodities and products doesn’t mean that there won’t be a global market or international co-operation.

You have worked your way up the ladder at Vattenfall. What has that experience taught you about leadership?
For any business, it’s important to have a clear purpose. Why are you there? What are you going to do? Our goal is to deliver fossil freedom. We want to ensure that people can live, work and travel in a way that reduces their climate footprint. That’s our business strategy, not our sustainability strategy. We need to offer products and services that are attractive to customers but also profitable for us: you need to make money to invest in new technologies and be successful.

And that means working with partners. Tell us about the some of your current projects.
We are working on new value chains, such as fossil-free steel and fossil-free cement, with a few businesses. We have announced a collaboration in fossil-free electricity, for example. I recently met with the ceo of chemical company basf in the Netherlands, which we have partnered with to co-invest in offshore wind. The company needs access to enough fossil-free electricity and at a reasonable price. We’re at the forefront of offshore-wind technology in Europe. Working on joint projects means that we can improve energy developments and fuel industry transformation.

Newspapers tend to paint a dire picture of human impact on the environment and the energy sector’s role and outlook. Is this fair?
I’m optimistic. I’m also realistic and very focused. We need to act now. It’s important to look at yourself in the mirror. Those of us who are here today [at the Stockholm Chamber of Commerce] need to lead the charge. We shouldn’t look to anyone else. The world around us is changing and we need to bear the consequences. We might not be moving at the speed some people are hoping for but we’re moving in the right direction. Yes, there are obstacles. But did anyone think that it would be an easy ride?  That was never the case. We need to figure out where we’re going – and, to me, that’s very clear.