Our view and influence
Sustainable value creation
Industrivärden’s strategy to develop and create value in its portfolio companies over the long term naturally entails a sustainability focus. Sustained value growth can only be created in long-term competitive companies that pay close attention to environmental, social and governance issues. Industrivärden is a responsible owner with high ambitions to participate in the development of enduring businesses. In this way, it is possible to contribute to sustainable portfolio companies, which benefits the communities in which they operate. This involves minimizing sustainability-related risks while capitalizing on sustainability-related opportunities in a rapidly changing world.
Industrivärden sets clear demands for its portfolio companies. These include establishing strong market positions, good cash flows and financial strength, as well as a distinct capacity for development. This forms a stable foundation for well-integrated sustainability work with innovations, products and services that contribute to sustainable development. By investing capital in operationally and financially enduring companies and contributing to the portfolio companies’ strategic sustainability work, Industrivärden takes responsibility for sustainable development.Particular focus is put on material sustainability risks and sustainability-related opportunities from risk mitigation and value creation perspectives. Industrivärden’s overarching ambition is to be a well-informed and demanding owner with a sustainability perspective that contributes to the long-term success of its portfolio companies, and to offer a long-term and sustainable investment with an attractive total return at balanced risk.
In order to conduct a qualitative analysis of portfolio companies’ sustainability work and exert influence as needed, Industrivärden needs to have in-depth knowledge of each company’s operations and sustainability-related issues. The sustainability analysis is therefore an integrated part of the company analysis of each portfolio company. Material sustainability aspects are evaluated from a holistic perspective, based on the portfolio companies’ respective operations, geographies and stages of development. This ensures that the sustainability perspective is included in evaluations of the portfolio companies’ boards and management teams, strategic issues and financial performance.
