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Our view and influence

 

Industrivärden's view of sustainability

Industrivärden’s mission is to contribute to good growth in net asset value of the Company’s assets through active ownership. The active ownership role entails a long-term investment perspective and a natural involvement in the portfolio companies’ strategic development. By contributing to the development of long-term competitive companies, Industrivärden enables growth in value over time and sustainable development. Industrivärden is therefore an owner that makes demands and has high ambitions to contribute to sustainable businesses that benefit the communities in which they are conducted. This involves minimizing sustainability-related risks as well as capitalizing on sustainability-related opportunities. From an overarching perspective, Industrivärden has the greatest sustainability influence through its role as an active owner of its portfolio companies.

In addition, Industrivärden conducts sustainability work in its own operations, where focus is on being a responsible employer.

Central frameworks

Industrivärden’s operations are conducted with a foundation in the Company’s Code of Conduct and policies. Through active ownership Industrivärden works to ensure that its values and ethical guidelines will also permeate the companies in which it is an active owner. The Code of Conduct has been adopted by the Board of Directors and is revised yearly. In short, it stipulates that:

  • good business ethics and clear corporate governance with a genuine sustainability perspective contribute to long-term value creation and sustainable development in society,
  • the workplace shall be distinguished by openness, receptiveness and mutual respect,
  • the Company repudiates all forms of discrimination and believes that diversity in all its forms enhances knowledge, dynamism and the quality of operations, and
  • the Companyshall apply and integrate the UN Global Compact and its ten principles in the areas of human rights, labor, anti-corruption and the environment.

In its sustainability work Industrivärden also adheres to global initiatives such as the OECD’s Guidelines for Multinational Enterprises, the ILO’s eight fundamental conventions and the UN Guiding Principles on Business and Human Rights. From an influence perspective, the business sector has a central role in creating a sustainable world. Industrivärden is therefore a signatory of the UN Global Compact and has worked since 2015 to promote its ten principles.

Stakeholders, materiality analysis and focus areas

Industrivärden’s sustainability-related focus areas have been identified and concretized with a foundation in a materiality analysis. This analysis draws from Industrivärden’s abilities to influence through its ownership role, a materiality perspective, and a stakeholder analysis based on continuous stakeholder dialogues. Within the framework of the stakeholder analysis, Industrivärden engages shareholders and potential investors, other large owners of the portfolio companies, representatives from the portfolio companies, Industrivärden’s employees, and authorities, legislative bodies and non-governmental organizations. The stakeholder dialogues are an integral part of operations and are conducted within the framework of numerous external meetings as well as through structured dialogues at investor meetings, for example. Knowledge is also obtained through various partnerships, such as our involvement in Swedish Investors for Sustainable Development (SISD). Additional methods for engagement with Industrivärden's stakeholders include regular talks and meetings, annual reports ant interim reports, the Annual General Meeting, performance dialogues with employees, memberships, etc.

The materiality analysis shows that certain approaches and activities are considered to have a considerably high level of materiality. Industrivärden aspires to be an engaged and responsible owner that contributes to well-run companies for sustainable societal development. It can thereby offer a long-term, sustainable investment with a competitive return at balanced risk. Industrivärden aims to develop strategic sustainability work and puts particular emphasis on structural sustainability aspects such as the climate, diversity and anti-corruption etc. Sustainability issues of a more operational character in the portfolio companies are considered to have medium-high materiality. These include taxes, business ethics and health, among other areas.

With a base in the sustainability analysis, four sustainability focus areas have been identified, which Industrivärden actively drives through its ownership role. 

These are:

  • Long-term sustainable production and innovation that support development of sustainable products and services
  • Responsible businesses and organizations that create sustainable economic growth through diversity, good business ethics, good working conditions and respect for human rights
  • Minimized negative climate and environmental impacts
  • A long-term sustainable role in society that contributes to positive development in the communities in which the companies work

Based on these focus areas, relevant goals have been set with support of the UN’s Agenda 2030 framework for the Sustainable Development Goals (SDG). From an influence perspective, SDGs 5, 8, 9, 12, 13 and 16 relate to Industrivärden’s portfolio companies within the framework of Industrivärden’s active ownership.

SDGs 5 and 13 also pertain to the Company’s own operations. During the year, the UN’s Intergovernmental Panel on Climate Change (IPCC) published its sixth major climate report, which highlights the need to dramatically reduce carbon emissions and limit global warming to 1.5 degrees Celsius. Against this background, significant action is required of companies in all sectors to be able to achieve the goals of the Paris Agreement and Agenda 2030. Most of Industrivärden’s carbon emissions are associated with its ownership in the portfolio companies. Industrivärden has therefore concretized its goals pertaining to the climate – both for the portfolio and for its own operations. In addition to this, Industrivärden has also set a diversity goal.

 

Stakeholder analysis

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Last update: 15 Mar 2022