Our view and influence
Industrivärden's view of sustainability
Industrivärden’s mission is to conduct long-term valuecreating asset management through active ownership. The long-term horizon entails that adherence the sustainability principles in the portfolio companies is crucial for Industrivärden’s opportunities to achieve enduring growth in value. Industrivärden is therefore an owner that sets requirements and has high ambitions to contribute to sustainable businesses that benefit the communities in which they operate. This entails 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 in its portfolio companies. In addition, Industrivärden conducts sustainability work in its own operations, where focus is on being a responsible employer. The active ownership role entails a long-term investment perspective and natural involvement in the portfolio companies’ strategic development. By contributing to the development of long-term competitive companies, growth in value over time and sustainable development are made possible.
The global pandemic in 2020 has affected the portfolio companies’ operations in many different ways, which is described in general on pages 7 and 10–13. However, the work conducted in recent years to strengthen the portfolio companies’ flexibility and ability to adapt have proven to be a clear strength in an uncertain world. The companies’ increased resilience and flexibility are in many ways a key aspect of sustainable business.
Industrivärden’s operations are conducted in accordance with 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 and the ILO’s eight fundamental conventions. From a sustainability perspective, the business sector has a central role in creating a sustainable world. Industrivärden has therefore signed and works for realization of the UN Global Compact.
Stakeholders 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.
With a base in the sustainability analysis, four sustainability-related focus areas have been identified, which Industrivärden actively drives through its ownership role. These are:
- Long-term sustainable production and innovation in support of 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 concretized with support of the UN’s Agenda 2030 framework for the Global Sustainable Development Goals (SDGs). 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.