The GRC Standards
For Kinnevik, sustainability is about creating long-term shareholder and social value by building well governing companies that contribute positively to society. Kinnevik’s general expectations in relation to our investee companies’ sustainability performance are outlined in our Corporate Responsibility Policy. In 2014, Kinnevik initiated the development of a structured framework to define GRC and sustainability best practices for our companies, to measure performance and to set priorities and roadmaps. Kinnevik’s GRC Standards were developed based on stakeholder dialogues, peer benchmarking and industry best practice.
The GRC Standards comprise 64 standards divided into six sections and are weighted according to their importance to our stakeholders, as well as their relevance to our investee companies’ performance. An overview of the GRC Standards is provided in the table below.
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Outcome of the 2018 GRC assessment
The assessment for 2018 included 24 (18) companies, 6 (5) public and 18 (13) private, corresponding to ca 99% (98%) of Kinnevik’s portfolio value. A key reflection from this year’s assessment is that most companies have improved their GRC scores. For example, Betterment has implemented a robust risk management framework to monitor all high risks and efficiency of any mitigating actions. Global Fashion Group has mapped their private label supply chain and audited their material suppliers to ensure compliance with the applicable supplier code of conduct.
The main challenge for our investee companies is setting the right tone at the top on GRC and sustainability by active participation by the board and management team. Early stage companies are also generally struggling with balancing GRC development and growth. Further, although information security has been a focus area for 2018 many companies are still in early stages of development and therefore tend to have lower scores.
TOTAL SCORE 2017
TOTAL SCORE 2018
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Target for 2019
The targets for the reporting year 2019 are to improve the scores across all sections of the GRC Standards for our existing investee companies and to establish strong foundations for GRC and sustainability performance for any new companies that Kinnevik may choose to invest in during 2019.