Interview with Klaus Müller, CFO naturenergie

Sustainable energy efficiency as a factor for the future

Author
IFBC Team
Date
17/12/2024

naturenergie holding AG (naturenergie) is a German-Swiss energy pioneer in Südbaden and Switzerland. For over 125 years, the group has been generating green electricity, promoting sustainable use of nature and the environment, and developing climate-friendly energy solutions. Its products and services cover the areas of photovoltaics, heating, building & living, and e-mobility. Sustainable energy efficiency has become an important location and future factor for the regions in which naturenergie is active. In order to support the energy transition on both sides of the Rhein economically, foresight is needed in financial matters and innovative overall solutions that integrate the interests of all stakeholders.

IFBC acted as exclusive financial advisor to naturenergie in developing a financing concept and designing the dividend policy. The services also included individual transactions, such as the acquisition of Energieversorgung Südbaar GmbH & Co and the development of a forward-looking M&A strategy. Together with the management of naturenergie, the M&A focus areas were aligned with the corporate and financing strategy and a roadmap designed to strengthen the implementation of the strategy in the long-term.

Klaus Müller, CFO and member of the management board at naturenergie, provides insights into the transformation towards customer-oriented energy solutions and an infrastructure for a worthwhile community, where sustainable ways of living and doing business are the norm.

What does “energy in the we and now” mean to you?

A secure supply of sustainable energy was and is a central key to both our daily lives and our economic and social development. It is nothing new that the combustion of fossil fuels for energy generation is a finite topic and has negative consequences for our environment. What is new is that we are now increasingly feeling the effects directly in our everyday lives. Taking action together in the here and now is a corporate and social responsibility. It is important to work with customers and local authorities – hence the “we” – to implement affordable and sustainable solutions that take regional requirements into account.

“A secure supply of sustainable energy was and is a key factor for our daily lives as well as for our economic and social development.”

What challenges do you see on the road to becoming a successful integrated infrastructure provider in the long term?

We have extensive knowledge, first-class engineers and high quality standards. However, the demographically induced shortage of skilled workers in the trades and in implementation is noticeably limiting us. Furthermore, the issue of affordability has gained in importance for all stakeholders. The competitiveness of companies in international markets also plays a central role here. In addition to the challenges mentioned, there is a lack of social consensus on certain issues, and this significantly inhibits the willingness to invest and finance. The human and financial resources for implementing the necessary changes in energy supply are limited.

How do you contribute to the energy transition as a CFO?

My responsibilities include finance, sustainability, and the electricity grids in Südbaden. This combination of responsibilities gives me a holistic view of the challenges and an understanding of the levers for achieving good results. As a grid operator, we are restructuring our grid in such a way that we not only offer new solutions, e.g. for feeding in electricity from wind and photovoltaics, but are also attractive for customers and investors alike.

What are your financing priorities?

To ensure healthy and flexible financing, I work consistently with long-term partners. This is also generally in our genes as an operator of power plants and grid facilities. Infrastructure should continue to benefit society in 40 to 60 years. To do this, we need to be well anchored in the community, in order to create acceptance and trust locally. This means that it is crucial to communicate clearly how investment and financing contribute to sustainable living and economic activity in a region.

“In order to support the energy transition on both sides of the Rhine in an economically viable way, we need to take a long-term view of the financial issues and develop innovative overall solutions.”

How does your company pursue its own sustainability goals?

Our name, “naturenergie”, stands for sustainability and it is an integral part of our comprehensive corporate policy. On the one hand, it is important to cover the additional reporting requirements regarding ESG (Environmental Social Governance) and CSRD (Corporate Sustainability Reporting Directive) and, on the other hand, to maintain our current environmental certifications. These are components for ensuring more comprehensible and comprehensive transparency for the stakeholders. In doing so, we are also addressing the issue of reducing our CO2 emissions. At around 10,000 t CO2e in Scope 1, the group's emissions are very low compared to other companies. Scope 2 CO2 emissions mainly include our grid losses (approx. 25,000t CO2e). We voluntarily offset our Scope 1 and Scope 2 emissions with emission certificates and guarantees of origin. We are currently calculating the emissions for the relevant categories in Scope 3. We will use the findings to derive specific further developments that we can implement in a timely manner. We are setting out our ambitions in a transition plan.

Where do the opportunities lie and what is the focus of the M&A strategy?

The world around us is developing very quickly. The M&A strategy is a central component in recognizing possible opportunities, making clear decisions and adapting quickly to new circumstances. As a forward-looking organization, we focus on new markets, competencies and technologies in order to strengthen ourselves in targeted ways. This requires a clear framework. This is provided by our M&A strategy.

What do you consider to be the most important tasks of a CFO in general?

As a CFO, you first look at the company from a financial perspective. To put it simply: what does it cost and what does it bring? The most important task for me is to integrate this perspective into the operational business so that managers can make the right decisions and seize opportunities. In addition, the CFO's role is to anticipate and quantify important risks and to help limit them.

What aspects characterize the collaboration with IFBC?

I perceive IFBC as a very competent service provider and partner. I appreciate the trusting cooperation and the personal exchange very much.

How do you meet the interests of your diverse stakeholders?

naturenergie is always open to feedback, both from within the organization and from the business, social and political communities. For example, the increased construction activity is clearly noticeable in certain municipalities and regions and is not always immediately understood. It is important to listen carefully and engage in dialog with the stakeholders. This is how we often manage to balance mutual interests and ensure a secure supply of sustainable energy.

Klaus Müller was born in Rheinfelden (Baden) in 1968. He holds a degree in Business Administration (FH) and studied at the Pforzheim University of Applied Sciences. He has been a member of the management team and CFO of naturenergie holding AG since October 2024. Previously, he was Head of Finance & Services (2015 – 2024) and was responsible for accounting and several controlling services at naturenergie holding AG over the last few years. As part of other professional mandates, Klaus Müller is, among other things, a member of the Board of Directors of enalpin AG and Deputy Chairman of the Supervisory Board of Stadtwerke Bad Säckingen GmbH.

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