Own operations

Strategy

Industrivärden’s strategy is to exercise active ownership through sizeable ownership stakes in selected listed companies. Because sustained value growth can only be created in long-term competitive companies that pay close attention to environmental, social and governance issues, this strategy entails a natural focus on long-term sustainable business models. In its role as owner, Industrivärden therefore emphasizes in its portfolio companies the minimization of sustainability-related risks along with capitalization on sustainability-related opportunities.

With its long-term perspective, Industrivärden is able to support and endorse its portfolio companies’ strategic initiatives that entail investment today, but that minimize risk and generate significant financial opportunities and value in the longer term.

Business model

Industrivärden’s ownership role is based on having significant influence, industrial expertise, a long-term perspective and financial strength.

Industrivärden has in-depth knowledge of each portfolio company. Sustainability considerations are included in assessments of the companies’ governance and structure, as well as their financial and operational performance. Portfolio companies need to have the boards, leadership, organization and resources required to integrate sustainable business practices – and thereby long-term value creation – into their business models, processes and offerings.

Value chain

Industrivärden’s value chain plays an important role in implementation of the Company’s double materiality analysis. At the center are Industrivärden’s own operations in the form of ownership and investment activities, comprised of analytical activities and the exercise of active ownership. The Company also  manages its own administration. Considering Industrivärden’s business model, the most important resources in the Company’s own operations are its employees and directors. Industrivärden’s upstream activities mainly involve the purchase of equipment and services. Industrivärden’s downstream activities are comprised primarily of the Company’s eight listed portfolio companies in which Industrivärden, as minority owner, exercises an active ownership role. It is in this role that Industrivärden’s greatest sustainability-related impacts, risks and opportunities are found. The portfolio companies are independent listed companies and are responsible for their own sustainability work.