Read more about the sustainability performance in our companies in our latest Sustainability Report:
The Kinnevik Standards
Kinnevik has developed a structured framework to define best practices for our companies, to measure performance and to set priorities and roadmaps, called the Kinnevik Standards (the “Standards”). They were developed based on stakeholder dialogues, peer benchmarking and industry best practice.
Kinnevik’s investment team, supported by the Sustainability Function, is responsible for implementing the Standards in our investee companies. At its core, the Sustainability Function is a business development function with the purpose of supporting our companies to put the necessary structures, processes and culture in place to be successful over the long term.
The Standards mirror our material topics and comprise 84 measurement points across the three dimensions of sustainable development: environmental, social and governance aspects.
Kinnevik performs a yearly assessment of all our material investee companies, public and private, based on the Standards. Following the completion of the assessment, Kinnevik scores the investee companies on their fulfilment of each standard. The development of the scores can be tracked over time for the total portfolio and for individual companies.
Sustainability performance in our portfolio companies 2020
A cornerstone of our sustainability efforts is an active engagement with our companies. During 2020, we have initiated the roll-out of a climate strategy across our portfolio, focusing on measuring emissions. We have developed a Diversity & Inclusion Toolkit to provide our companies with inspiration and a practical guide on how to create more diverse and inclusive workspaces. We have expanded the scope of the Kinnevik Platform, a network of events and people aimed at sharing knowledge and best practices and to support the development of our companies. We have also continued to improve the governance structures across the portfolio, with a particular focus on the new companies.
In 2020, we launched a new 3.0 version of the Kinnevik Standards to raise the bar generally and to better reflect our increased focus on environmental and social aspects.
Because of our long-term investment horizon, we have continued to improve the governance structures across all our portfolio companies in 2020, with a particular focus on the new companies in our portfolio. This involves working with the Boards and management teams to improve governance and controls. We also continued to work with all our companies to improve their internal control environment, risk management and compliance frameworks. During the year, most companies improved their internal governance to oversee the development of sustainability initiatives.
In 2020, 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 their businesses.
D&I is a long-term commitment and many companies have plenty of room for improvement and this will continue to be an important initiative in the coming years.
As the climate crisis escalates, Kinnevik and our portfolio companies are responding. With our active support, our companies are increasingly taking action to reduce their environmental impact. The focus for 2020 was, and remains for 2021, the Climate Strategy Roll-Out in the Portfolio. This consists of three steps, with an optional fourth, done in collaboration with our portfolio companies and is an important step in their path to a low-carbon customer offering.