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Portfolio companies

Active ownership

Industrivärden puts strong emphasis on ensuring that its portfolio companies have a sustainable approach in all aspects of their operations. This leads to competitive companies, enables growth in value and promotes sustainable development in society. Particular emphasis is put on material sustainability risks and sustainability-related opportunities from risk mitigation and value creation perspectives. The portfolio companies are active in widely diverse industries and are in different stages of development. They therefore face different challenges and opportunities. From an overall perspective it is Industrivärden’s expectation that they:

  • view sustainability as a key strategic issue,
  • integrate sustainability aspects in their business models, business cultures, strategies, processes and product offerings,
  • comply with applicable laws, rules and generally accepted principles for sustainable business,
  • continuously improve their sustainability work with support of relevant guidelines and measurable goals, and
  • communicate their sustainability work and the way in which they contribute to long-term sustainable development in the communities in which they work.

Industrivärden’s sustainability analysis makes up an integral part of the fundamental analysis of the respective portfolio companies. Any influence initiatives are conducted within the framework of Industrivärden’s business model, which is described on the page Business model. This analysis is performed from an overarching owner perspective and is based on Industrivärden’s framework for its sustainability analysis, which 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 and thereby long-term value creation in their business models, processes and product offerings. Industrivärden shall be a well-informed and demanding owner with a clear sustainability perspective that contributes to sustainable development of its portfolio companies.

Sustainability goals and activities: active ownership

Good starting point for sustainable value creation

Industrivärden’s portfolio companies have generally made great progress in capitalizing on the value created by longterm sustainable business and measure up well in various comparisons with their industry peers. Following are a few examples of sustainability work currently being conducted by the portfolio companies.

Sandvik

Sandvik Coromant’s production unit in Gimo, Sweden, has been officially included in the World Economic Forum’s network of manufacturing “lighthouses” that are technological leaders in the fourth industrial revolution with the citation that it “has created a digital thread through its production processes that has significantly raised labor productivity.” All members of the network keep humans and sustainability at the heart of innovation and have agreed to share their knowledge with other manufacturing businesses.

Volvo

Volvo Trucks’ two first fully electric Volvo FL Electric vehicles have now been put into operation in Gothenburg. The absence of engine noise and emissions is contributing to a better work environment and a quieter, cleaner urban environment. During the second half of 2019 series production of the FL Electric and its powerful sister model FE Electric began for the European market.

Handelsbanken

Handelsbanken launched its Hållbar Global Obligation (“Sustainable Global Bond”) fund, which includes bonds issued specifically to fund improvements in the environment, climate, poverty, or any of the other global Sustainable Development Goals. In 2019 Handelsbanken’s exclusion strategy for funds, called Criteria, added cannabis as a new exclusion criterion.

Essity

At year-end 2018 Essity’s climate targets were approved by the Science Based Targets Initiative, a scientific method that certifies that an organization’s climate targets are in line with the Paris Agreement. In February 2019 Essity was included in RobecoSAM’s Sustainability Yearbook 2019 – a list of the top performing companies in their respective sectors.

Ericsson

During 2019 Ericsson began the commercialization of 5G. The changeover to 5G has great potential to not only develop energy-efficient solutions for mobile networks, but also to help various sectors in society to reduce their environmental impact. An obligatory web-based program for countering corruption was launched in 2018, and more than 88,000 employees have now completed the training.

SCA

In SCA’s 2018 Annual Report the company reported its carbon footprint for the first time. The footprint is positive and corresponds to the carbon footprint of Sweden’s total truck and domestic air traffic. During 2019 SCA was also an initiative- taker to ISO 14008, a new standard designed to help companies monetarily value and manage their environmental impact costs.

Skanska

During 2019 Skanska increased its focus on safety issues. Skanska Safety Week, one of the world’s biggest safety events in the private sector, was carried out in May by 250,000 people to spotlight and increase the employees’ knowledge about workplace safety. Skanska’s business processes include measures to support and drive human rights globally, local legislation and the company’s Code of Conduct.

SSAB

SSAB has taken yet another step in the transition towards carbon dioxide free steel production. In Oxelösund the coking plants and blast furnaces will be replaced with an electric arc furnace. The application for a new operational permit was submitted during the year, and the plan is that the electric arc furnace will be fully operational in 2025, thereby reducing carbon dioxide emissions by nearly 90%.

Last update: 02 Mar 2020