Maximising the Positive Impact
We have a structured engagement model and a bespoke approach for implementing ESG strategies in each portfolio company, with the aim of creating business value and supporting the company’s overall business strategy.
Kinnevik’s sustainability team is represented at each stage of the investment process and only companies that fit our investment ethos and share our values are brought to the Executive Investment Committee.
After investment, Kinnevik has a structured and bespoke approach to support companies in identifying, measuring and crystallising their positive impact on the world. We also support them in implementing value-adding and integrated sustainability strategies. We base our efforts on each company’s unique business case and potential related to sustainable development.
We offer all our portfolio companies a materiality assessment workshop to better understand their key sustainability topics, and to identify why and how sustainability can drive business value. Based on the materiality assessment, we help the companies set bold strategic visions and targets and a concrete roadmap with priorities.
The Kinnevik Standards
To measure performance and define best practices for our companies, Kinnevik has developed a proprietary ESG assessment 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. The Standards have been subject to review by external parties such as auditors, subject-matter experts and independent ESG specialists and have also been approved by the Kinnevik Board.
Kinnevik conducts an annual assessment of our portfolio companies in accordance with the Standards and based on the outcome, agrees priorities and annual objectives for each company, including in relation to supply chain risks and compliance. The progress of these objectives is documented in a sustainability dashboard for each business. The ESG score assigned to each company can be tracked over time for the total portfolio and for individual companies. The 2022 assessment included 37 (34) companies, 5 (4) public and 32 (30) private, corresponding to just under 100 (100) percent of Kinnevik’s portfolio value per 31 December 2022. On a comparative basis, the average 2022 ESG score across our portfolio increased by 10 percentage points, from 49% in 2021 to 59% in 2022.
Overview of Kinnevik’s investment process and post-investment ESG engagement with our companies