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Strategy, governance and risk management

Structure of sustainability reporting

Industrivärden’s sustainability reporting is integrated in the Company’s business review and annual report, where the sustainability perspective makes up part of the descriptions of the Company’s business model and operations. The statutory sustainability report as prescribed by the Annual Accounts Act for the 2022 calendar years consists of the sections Sustainable value creation (pages 18–19), Detailed sustainability information (pages 81–89), and the GRI Index and TCFD Reference (pages 90–93). The GRI Index has been prepared based on the Global Reporting Initiative Standards (the GRI Standards).

The sustainability report has been examined by the Company’s auditor in accordance with FAR’s recommendation RevR 12, Auditor’s opinion regarding the statutory sustainability report, and an opinion on the sustainability report has been provided.

Industrivärden has signed the UN Global Compact, and Industrivärden’s Communication on Progress (CoP) report for 2022/2023 as well as its commitments for 2023/2024 are published on the UN Global Compact website (in March of the respective years). Industrivärden also reports yearly climate data including the portfolio’s carbon emissions to the CDP as well as its climate exposure (TCFD) in the sustainability report. To address the market’s interest, general sustainability data is also reported to the largest sustainability databases, including S&P Global CSA and Sustainalytics.

Industrivärden’s Code of Conduct and an SASB index for 2022 has been published on Industrivärden’s website.

Industrivärden’s portfolio companies have prepared their own sustainability reports, which can be found on the companies’ respective websites.

Direct and indirect sustainability influence

From an overarching perspective, Industrivärden has the greatest sustainability influence through its role as an active owner of its portfolio companies. Against this backdrop, the sustainability perspective makes up an integral part of Industrivärden’s company analyses and owner agendas.

Particular emphasis is put on ensuring that the portfolio companies have clear systems of corporate governance and adhere to good business ethics, a well integrated sustainability perspective, and that they offer an attractive workplace. It is the respective companies’ boards and management teams that are responsible for prominent and well integrated sustainability work. In order to evaluate and, where needed, exert influence in these areas, Industrivärden analyses sustainability aspects such as governance and leadership, business culture, resource efficiency, climate impact, organization and diversity. In doing so Industrivärden has an indirect sustainability influence in its portfolio companies.

In addition, Industrivärden has a direct sustainability influence through the work that is conducted in its own operations in the listed company AB Industrivärden. The organization comprises approximately 15 employees at the office in Stockholm. Sustainability work encompasses all relevant aspects, but the main focus is on being a responsible employer, striving for diversity and reducing the Company’s own climate impact. Given its active owner role, Industrivärden strives to serve as a model and to work proactively with a clear sustainability focus in its own operations.

Governance and execution

Sustainability strategy and owner influence

The principles for how Industrivärden is to act as a company and responsible owner are laid out in the Code of Conduct, which is adopted by the Board of Directors and is revised yearly. Through its active ownership Industrivärden strives to ensure that these approaches will permeate the companies in which it is an active owner. These guidelines stipulate, among other things, that:

  • the overarching goal is to generate sustainable shareholder value while taking into account the stakeholders’ interests as well as the overall economic, environmental, climate and social impact of operations;
  • good business ethics and clear corporate governance with a genuine sustainability perspective contribute to long-term value creation and sustainable development of society;
  • the workplace shall be distinguished by openness, responsiveness and mutual respect;
  • the Company shall repudiate all forms of discrimination, since diversity in all forms enhances the level of knowledge, dynamism and quality in the operations;
  • the Company shall uphold and integrate the UN Global Compact’s Ten Principles in the areas of human rights, labor, anti-corruption and the environment.

With a foundation of good knowledge about the portfolio companies and the worlds they work in, Industrivärden exercises its ownership influence, mainly through representation on nominating committees and boards as well as in close dialogue with the companies. This work is an integral part of Industrivärden’s overarching model for active ownership, thereby ensuring that Industrivärden’s analysis, influencing work and follow up are of high quality. The specific sustainability analysis is described below, and the process for exercising active ownership and ownership influence is described in Active ownership.

Organization and responsibility

Industrivärden’s board is responsible for formulation of the Company’s goals and strategy, the forms of exercising active ownership and the fundamental sustainability principles.

Sustainability work is evaluated on a continuous basis within the framework of operations as a whole. Follow up of and decisions on sustainability work are conducted yearly at a board meeting and when necessary. The CEO has overarching responsibility for the Company’s direct and indirect sustainability work as well as for integrating the sustainability aspect in the analysis and ownership processes. The Head of Sustainability is responsible for Industrivärden’s direct sustainability work, external communication on sustainability matters, and internal collaboration in certain sustainability matters within the framework of the active ownership. Team managers are responsible for the integrated sustainability analysis in the respective portfolio companies.

Sustainability analysis

Being able to conduct a qualitative analysis of the portfolio companies’ sustainability work – and exercising influence when needed – requires that Industrivärden has a depth of knowledge about the respective companies’ operations and sustainability related matters. The sustainability analysis is therefore an integral part of the company analysis that is performed of the respective portfolio companies. In this way, material sustainability aspects are evaluated from a holistic perspective, with a base in the portfolio companies’ respective operations, geographies and stages of development.

This means that the sustainability perspective is included in evaluations of the portfolio companies’ boards and management teams, strategic issues and financial performance. The sustainability analysis also constitutes a more in-depth evaluation of sustainability issues and encompasses the portfolio companies’ organizations, structures, risk management, utilization of value creating opportunities and communication.

The analysis is materiality-oriented and ranks the issues that Industrivärden intends to study further as well as matters over which it wants to exercise influence.

Important areas of assessment include climate and environmental impact, social conditions, anti-corruption, and prevention of human rights violations. The portfolio companies are to 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.

The sustainability due diligence that is required of all listed companies (according to the GRI today and the CSRD in 2023) thus makes up an integral part of Industrivärden’s continuing sustainability analysis.

The main focus of the analysis is on sustainability related risks and opportunities to create value. The analysis is con- ducted with a double materiality perspective and looks both at the portfolio companies’ external sustainability influence and how they are affected themselves from a sustainability perspective – financially and operationally. In cases where Industrivärden identifies strategic conditions, risks or value creation opportunities in which it wants to exercise influ- ence, these are defined in Industrivärden’s respective owner agendas, which form the foundation for influencing work.

The owner agendas are revised at regular intervals and are set by Industrivärden’s executive management.

Industrivärden exercises influence through representation in the portfolio companies’ nominating committees and boards. The individuals who represent or have ties to Industrivärden are to have a current and pertinent understanding of the value creation measures identified for the respective portfolio companies. Against this background, Industrivärden’s owner agendas are continuously presented and evaluated by Industrivärden’s board. This allows Industrivärden to have an influence on strategic sustainability issues over time.

Risk management

Industrivärden’s material sustainability risks and value creation opportunities exist in the portfolio companies, which are responsible for managing these within the framework of their respective operations. Industrivärden’s risk analysis aims to identify conditions that deviate from the Company’s understanding of an optimal approach in the respective portfolio companies. The analysis encompasses all material sustainability risks in the respective companies with a base in Industrivärden’s prioritized focus areas. Climate related financial risks are one example, where the analysis covers transition risks as well as physical risks (effects of a changed climate) in various scenarios and time perspectives. The portfolio companies’ combined sustainability risks make up part of Industrivärden’s equities risk.

The overall outcome of Industrivärden’s risk analysis or the prioritized areas is shown below. Where needed, Industrivärden exercises its owner influence. Its active ownership thereby contributes to a long-term reduction of risk levels and to increasing value creation.

Guidelines and rules

Industrivärden’s sustainability strategy forms the foundation of the Company’s sustainability work both within the Company and within the framework of its active ownership. The sustainability strategy, which is described above, is defined in Industrivärden’s Code of Conduct. In addition to this are a number of guidelines and rules that normally apply for Industrivärden’s approximately 15 employees. All guidelines and rules are updated at regular intervals, and Industrivärden’s employees receive training in regulatory matters on a regular basis. 

Handling suspected violations of the Code of Conduct Industrivärden has a routine that is prescribed in the Code of Conduct for handling suspected violations of the Code of Conduct.

Cooperation and networks

Cooperation is a precondition for addressing sustainability challenges. Industrivärden has therefore signed the UN Global Compact and has been working to embody its ten principles since 2015. The Company regularly conducts various types of cooperation in the sustainability area.

It its sustainability work Industrivärden also adheres to global initiatives such as the OECD’s Guidelines for Multinational Enterprises, the ILO’s eight fundamental conventions and the UN Guiding Principles on Business and Human Rights.

Generated economic value

Good economic performance and financial strength are necessary preconditions for Industrivärden’s ability to create long-term value for its shareholders and support the portfolio companies over time. In this way, Industrivärden can contribute to good development of the portfolio companies’ corporate governance as well as social and environmental development. 

Materiality analysis

Industrivärden’s sustainability related focus areas have been identified and concretized with a foundation in a materiality analysis. This analysis draws from Industrivärden’s stakeholder dialogues, its abilities to influence through its ownership, and a materiality perspective.

Stakeholder dialogues

In its capacity as a holding company, Industrivärden has a financial, social and environmental influence on the world around it and on various stakeholder groups. Industrivärden therefore carries on a continuous dialogue with its stakeholders, which increases knowledge about important changes in the business environment and illuminates prioritized issues for the Company’s stakeholders.

The stakeholder dialogues are an integral part of the continuous contacts with the Company’s stakeholders and take the form of regular talks and meetings, annual reports, interim reports, Annual General Meetings, performance reviews with employees, memberships in various organizations, etc. Important stakeholders include shareholders, employees, other market actors, equity analysts, representatives of the portfolio companies, business partners and nongovernmental organizations (NGOs). During 2022 the stakeholder dialogues were reiterated for an updated materiality analysis without any material changes being made.

Significant issues

With a base in the respective stakeholder groups’ priorities and Industrivärden’s opportunities to exercise influence, the following have been identified.

  • Attractive return at balanced risk

    By owning quality companies with proven business models, where Industrivärden contributes through engaged ownership, the opportunities for long-term value creation increase at the same time that risk decreases. It is thus important that the portfolio companies have a good ability to minimize risks and capitalize on value creation opportunities within the framework of their own sustainability influence and external sustainability factors.

Central guidelines and rules



Policy area







Business ethics and anti-corruption

Code of Conduct


Board of Directors

Working conditions – general

Code of Conduct


Board of Directors

Working conditions – Parent Company

HR policy



Human rights

Code of Conduct


Board of Directors

Diversity/nondiscrimination – general

Code of Conduct


Board of Directors

Diversity/nondiscrimination, safety, etc. – Parent Company

HR policy



Environment and climate – general

Code of Conduct


Board of Directors

Environment and climate – Parent Company

Environment and climate policy



Information technology and cybersecurity

IT policy



Insider issues

Insider policy


CEO/Board of Directors

Risk management

Risk policy



Information and confidentiality

Information policy


Board of Directors

Protection of personal privacy

Personal data policy



Reporting of rule violations

Code of Conduct


Board of Directors


  • Owner influence to drive integration of sustainability in the portfolio companies

    Industrivärden’s opportunities to exercise active ownership require formal as well as trust based influence in the portfolio companies. It is therefore of major importance that Industrivärden has financial opportunities as well as trust capital to maintain its influence.
  • Good corporate governance and business ethics

    Both Industrivärden’s and the portfolio companies’ corporate governance and business ethics are of major importance for sustainable value creation. In its capacity as a sizable owner, Industrivärden has great opportunities to influence corporate governance. The portfolio companies themselves are to integrate good business ethics in all parts of their operations, which is crucial for upholding the trust of their stakeholders and long-term value creation.
  • Greater diversity

    The portfolio companies themselves are to strive for greater diversity from a double materiality perspective. Taking advantage of various perspectives is important for the portfolio companies’ long-term value creation as well for sustainable development of society.
  • Reduced climate and environmental impact

    The portfolio companies themselves are to strive for reduced climate and environmental impact from a double materiality perspective. A reduced impact creates opportunities for value creation at the same time that a slow pace of transition may entail direct as well as indirect risks and costs.
  • Responsible employers

    The portfolio companies themselves are to be responsible employers from a double materiality perspective. Attracting and retaining relevant expertise is crucial for the ability to generate enduring value creation in the portfolio companies.

    Stakeholders’ priorities may differ somewhat between various groups. However, there is a strong consensus that Industrivärden’s most important duty is to contribute to enduring shareholder value in its portfolio companies. Given Industrivärden’s business model, particular emphasis should be put on ensuring well integrated and structured sustainability work within the portfolio companies. The same applies for more owner related matters such as corporate governance and diversity as well as the globally urgent climate issue. Overall it can be noted that more strategically oriented sustainability issues are given higher priority than more operationally oriented matters.

Focus areas

Industrivärden shall be an engaged and responsible owner that contributes to well-managed companies for sustainable development of society. In doing so it can offer long-term attractive shareholder value at balanced risk. Industrivärden’s portfolio companies are active in various sectors and geographies, and thus the material sustainability issues differ from company to company. However, from a materiality perspective, certain more general, relevant matters can be discerned.

Moreover, given Industrivärden’s business model, it has the greatest opportunity to exert an influence in corporate governance related matters.

The materiality analysis shows that some sustainability areas are deemed to be particularly important, within which Industrivärden has chosen to actively pursue its owner role. These focus areas are:

  1. Responsible corporate governance and a sustainable role in society
    Good corporate governance incl. good business ethics and anti-corruption as well as diversity and good work conditions.
  2. Minimized negative climate and environmental impact
    Reduced impact on the world around us.
  3. Sustainable production and innovation
    Development and innovation of sustainable products and services as well as sustainable production with greater resource efficiency.

Based on these focus areas, relevant goals have been established 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 (indirect impact) within the framework of Industrivärden’s active ownership. SDGs 5 and 13 also pertain to the Company’s own operations (direct impact).

Reporting in accordance with the EU Taxonomy

The EU Taxonomy Regulation aims to help investors and companies identify and compare investments that contribute to sustainable development. Industrivärden’s own operations are not yet eligible under the Taxonomy, but it will have a major impact on the portfolio companies. In pace with the portfolio companies’ development of their reporting in accordance with the Taxonomy, it is Industrivärden’s ambition to provide a summary overview of this work. On December 31, 2021, the following share of the respective portfolio companies’ sales were Taxonomy eligible: Volvo 53%, Sandvik 15%, SCA 7%, and Skanska 56%. For Handelsbanken as a financial institution, the share of assets eligible under the

Taxonomy was reported based on the balance sheet as 39%. Essity and Ericsson have reported that those companies were not eligible under the Taxonomy Regulation in 2021. Alleima was introduced on the stock market in August 2022. For 2021 the portfolio companies reported the share of their sales that were Taxonomy eligible, and starting in 2022 they will report the share of sales that are aligned with the Taxonomy. The portfolio companies are expected to report on more activities in pace with development of the Taxonomy.

Last update: 30 May 2023