Kinnevik’s Role as an Active Owner

Our role as active owners is to contribute time and resources to support each of our companies in reaching their full value creation potential.

In our Corporate Responsibility Policy, we outline Kinnevik’s expectations of our portfolio companies with regards to their social and environmental impact on stakeholders. Companies can achieve this goal by combining economic performance with solid governance, risk management and compliance structures, as well as social responsibility and care for the environment. 

Kinnevik interacts on an ongoing basis in relation to sustainability topics, including environmental and social issues, with 16 of our investee companies, representing 92% of Kinnevik’s portfolio Value per 31 December 2016.

Public companies

In our largest public companies, Zalando, Millicom, Tele2, MTG and Qliro Group, we exercise our active ownership role through board representation. In 2016, our public companies made significant progress in their sustainability work through their own dedicated teams. More detailed information can be found in each investee company’s Annual Reports and Sustainability Reports.

Private companies

We engage regularly with all our larger private companies in relation to various sustainability work-streams, through board representation as well as engagement with management. An interview with Kinnevik’s GRC Director Mathew Joseph, in which he outlines our key sustainability focus areas in 2016 and going forward, is available on page 7 of the Sustainability Report 2016.

New investments

Sustainability is a separate due diligence work stream for all new investments made by Kinnevik. All potential new investments are evaluated in terms of its sustainability performance and structures. In instances where potential investments do not adhere to relevant standards, or are not considered to be susceptible to the required
improvements, Kinnevik refrains from the investment.

During 2016, Kinnevik made two new investments, babylon and Betterment. As with all new investments, both companies were subject to sustainability due diligence to ensure they met our expectations. This sustainability due diligence includes, among other elements, human rights screening, positive and negative environmental and social screening, and corruption risk assessment processes, all of which showed very low risk levels for both companies. Identified issues were discussed with the management teams and other shareholders, and a sustainability roadmap was agreed in order to address any material gaps. Given the fact that both businesses are in a relatively early stage of development, Kinnevik’s investment and sustainability teams will work continuously with the management of these companies to help support the development of sound sustainability structures.