Governance

Role of administrative, management and supervisory bodies

Responsibilities

A long-term, sustainable approach is an integral part of Industrivärden’s strategy, operations and overall governance. The responsibilities of the Board of Directors include deciding on and monitoring the company’s strategy, objectives and forms of active ownership, which encompass the Company’s overarching view of sustainability. The Nominating Committee investigates and nominates directors prior to the Annual General Meeting, with focus on ensuring that the Board has the necessary experience, expertise and diversity.

The Company’s directors, who have extensive experience from leading positions in a range of businesses and from directorships in large companies, have good sustainability-related expertise. They also have access to Industrivärden’s internal corporate governance and sustainability-related expertise.

The Company’s double materiality analysis and Industrivärden’s material sustainability matters are presented to the Board annually.

The CEO has delegated responsibility for the Company’s own sustainability work and sustainability communication to the Head of Corporate Communication and Sustainability. Responsibility for Industrivärden’s integrated sustainability analysis of its portfolio companies has been delegated to the respective team managers  within the framework of Industrivärden’s active ownership.

Additional information on the composition, overall duties, experience and diversity of the administrative, management and supervisory bodies is presented in the menu under Corporate Governance.

Governance

Industrivärden’s policies ensure that the Board’s and CEO’s responsibilities for managing sustainability-related impacts, risks and opportunities are integrated into Industrivärden’s governance structure. The framework for Industrivärden’s sustainability work is stipulated in the Company’s Code of Conduct. Sustainability and corporate governance policies are also in place to direct the business. The CEO is responsible for implementation of the Company’s policies. All policies are reviewed annually and revised as needed. Necessary adjustments are made based on operational requirements, external requirements and changes in the operating environment. Key policies and guidelines are presented in the table below.

The framework specifying how Industrivärden is expected to act as a company and responsible owner is detailed in the Code of Conduct, which is reviewed and adopted annually by the Board of Directors. Through active ownership, Industrivärden promotes these principles in the companies in which it is an active owner.

Objectives

Industrivärden expresses explicit sustainability ambitions and publishes relevant data in its respective material sustainability areas. Given the nature and limited scope of its own operations, no ­specific sustainability goals are set.

Integration of sustainability-related performance in incentive schemes

Pursuant to the Company’s remuneration policy, short-term variable cash compensation for employees must be linked to fulfillment of individual criteria that are determined annually and evaluated based on the employee’s effort and performance. Such criteria may be sustainability related. Additional information is presented in Industrivärden’s remuneration report here.

Risk management and internal control over sustainability reporting

Risks associated with Industrivärden’s sustainability reporting are managed within the framework of the Company’s overall financial control and reporting processes. For further information, see the menu under Corporate Governance.

Sustainability-related guidelines and frameworks