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Portfolio companies

Active ownership

Industrivärden requires that the portfolio companies have a sustainable approach in all aspects of their operations. This results in competitive companies, enables growth in value and promotes sustainable development in society. Particular impetus is put on material sustainability risks and sustainability-related opportunities from risk minimization and value-creating perspectives. Industrivärden’s overarching ambition is to:

  • be a well-informed owner that sets requirements with a clear sustainability perspective that contributes to longterm successful portfolio companies for the benefit of sustainable development of society, and
  • be a long-term and sustainable investment that offers a competitive total return which over time is higher than the average for the Stockholm Stock Exchange (SIXRX).

To materialize these ambitions, Industrivärden conducts the following:

  • Continuous analysis and follow-up of the respective portfolio companies in accordance with Industrivärden’s integrated sustainability analysis
  • Formulation of action plans for the respective portfolio companies and influencing efforts in accordance with Industrivärden’s business model. Industrivärden’s action plans and influencing activities are described in more detail on pag Active ownership
  • Dialogues with prioritized stakeholders aimed at soliciting views in support of further development of Industrivärden’s sustainability work

Industrivärden’s sustainability analysis

Being able to conduct a qualitative analysis of the portfolio companies’ sustainability work requires that Industrivärden has deep knowledge about the respective companies’ operations and sustainability-related matters. Industrivärden’s sustainability analysis is an integrated part of the fundamental analysis that is conducted of the respective portfolio companies. This analysis is performed from an overarching owner perspective and covers the portfolio companies’ organizations, structures, risk management, utilization of value-creating opportunities and communication. The portfolio companies shall have the boards, leadership, organizations and resources needed to integrate sustainable business practices and thereby long-term value creation in their business models, processes and offerings. Industrivärden’s material sustainability risks exist in the portfolio companies, which manage these within the framework of their respective operations.

Sustainability work in the portfolio companies

The portfolio companies are active in a wide range of industries and are in various stages of development. They therefore face different material challenges and opportunities. From an overall perspective it is Industrivärden’s expectation that:

  • they view sustainability as a key strategic issue and conduct first-rate sustainability work within their respective sectors, where sustainability aspects are integrated in their business models, business cultures strategies, processes and product offerings;
  • they develop and strengthen their sustainability work in a structured manner with support from relevant guidelines and measurable goals; and that
  • they monitor, evaluate and communicate the progress of their sustainability work, and convey the manner in which they are contributing to long-term sustainable development in the communities in which they operate.

The portfolio companies all face general as well as company-specific sustainability challenges. This pertains to everything from reducing their carbon footprints and changing over to more resource-efficient production – with sustainable products – to ensuring healthy, inclusive and equal opportunity workplaces both in their own operations and down the supply chain, and countering corruption. On the whole they have made great progress in capitalizing on the values created by conducting sustainable business and measure up well in comparison with their industry peers. 

Goal formulations along with illustrative indicators and examples of goal achievement are provided in the tables below.

Sustainable-production-and-innovation_ENG_S26.jpgResponsible-businesses-and-organizations_ENG_S26.jpgMinimized-negative-climate-and-environmental-impact_ENG_S26.jpgLong-term-sustainable-societal-role_ENG_S26.jpg

Last update: 04 Mar 2021