Stakeholders

Interests and views of stakeholders

Industrivärden’s various stakeholders and their views play an important role in the design of Industrivärden’s sustainability work. The Company’s stakeholders, listed in the table below, have been identified based on their significant impact on, or status as being impacted by, Industrivärden’s operations and their use of financial 
and sustainability-related information. Stakeholder views were determined through information gathering and dialogue, primarily within the scope of the Company’s routine interactions, and have been incorporated into the Company’s double materiality analysis. Insights on stakeholder views and expectations influence the 
Company’s sustainability-related priorities and are reflected in Industrivärden’s strategy.

Management of impacts, risks and opportunities

Industrivärden has mapped its value chain in order to identify, assess and manage the Company’s actual and potential sustainability-related impacts, risks and opportunities. Industrivärden’s stakeholders and the Company itself were then analyzed based on a large number of sustainability areas, applying methodology inspired by ESRS standards for double materiality analyses. The analysis is validated annually based on the previous year’s contacts with Industrivärden’s stakeholders within the scope of the Company’s ongoing operations.

The double materiality analysis assessed each sustainability-related consequence (impact) based on its nature in terms of scale (negative difficulty versus positive advantage), scope (prevalence), irremediability and probability. Risks and opportunities (i.e., financial impact) for Industrivärden were assessed based on their magnitude and probability. Material areas were then identified based on a weighted assessment.

The key sustainability areas of the portfolio companies (down-stream in Industrivärden’s value chain) are analyzed regularly within the scope of Industrivärden’s company analysis. Any issues or material deviations identified by Industrivärden are managed within the framework of active ownership.

Stakeholders, interaction methodology and material matters