Read more about the sustainability performance in our companies in our latest Sustainability Report:
The Kinnevik Standards
To measure performance, set annual objectives and define best practices for our companies, Kinnevik has developed a structured framework called the Kinnevik Standards (the “Standards”). These were developed based on stakeholder dialogues, peer benchmarking and industry best practice and comprise 84 measurement points across environmental, social and governance aspects.
Kinnevik’s Sustainability Team conducts an annual assessment of all portfolio companies, public and private, based on the Standards. Following the completion of the assessment, Kinnevik scores the companies on their fulfilment of each standard (ESG Scores).
The 2021 assessment included 34 (26) companies, 4 (4) public and 30 (22) private, corresponding to close to 100 (100) percent of Kinnevik’s portfolio value per 31 December 2021. For 2021, the average ESG score across our portfolio was 62%, up from 50% for 2020 on a comparative basis.
Sustainability support to our portfolio companies in 2021
A cornerstone of our sustainability efforts is an active engagement with our companies. During 2021 we have continued the roll-out of a climate strategy across our portfolio while adapting our approach to be more tailored to each company We have provided hands-on support to a number of companies in terms of implementing forward-leaning D&I strategies and participated in numerous management recruitments with the ambition of broadening diversity of the teams We have also continued to improve the governance structures across the portfolio, with a particular focus on the new companies
In 2021, we have continued our efforts to engage and support portfolio companies on climate strategy and adapted our engagement to a more customised approach factoring in companies’ stage and sector. With our active support, our companies are increasingly taking action to reduce their environmental impact.
Per end of 2021, six of our portfolio companies (representing 52% of portfolio value) have measured their emissions in Scope 1, 2 and relevant scope 3 categories in accordance with the GHG Protocol: Babylon, Budbee, Global Fashion Group, Mathem, Oda and Tele2. Four of our portfolio companies (representing 45% of portfolio value) have set reduction targets in line with science.
In 2021, the focus on diversity and inclusion has continued. Many of our companies have implemented or initiated the process of creating company-wide and management-led D&I strategies focusing on the integration of D&I into all parts of the business.
Since the launch of our D&I framework in May 2019, the share of women in our portfolio companies’ management teams, excluding emerging market assets, have increased from 22% to 28% and the share of women in our private portfolio boards, excluding emerging market assets, have increased from 9% to 20%. Only in 2021, we have added fourteen female board members to our private portfolio companies.
Because of our long-term investment horizon, we have continued to improve the governance structures across all our portfolio companies in 2021, with a particular focus on the new companies in our portfolio.
For the 10 new relatively early-stage businesses we invested in during 2021, we have focused on setting up more structured governance processes and initiating discussions on ESG ambitions and roadmaps. This involves working with the Boards and management teams to improve governance and controls and to create clear ESG roadmaps to enable sustainable growth.