The basis for corporate governance in Kinnevik is Swedish legislation, the Nasdaq Stockholm Rule Book for Issuers, and the regulations and recommendations issued by relevant self-regulatory bodies. Kinnevik follows the Swedish Corporate Governance Code (Swedish: Svensk kod för bolagsstyrning). The responsibility for sustainability is split between Kinnevik’s Board, GRC Committee, Risk Committee, CEO and General Counsel. The Board is responsible for Kinnevik’s overall strategy, including sustainability.
Kinnevik’s Board is responsible for internal control in accordance with the Swedish Companies Act (Swedish: Aktiebolagslagen) and with the Swedish Corporate Governance Code. Kinnevik’s risk framework is outlined in the Risk Management Policy. Kinnevik’s management has established a Risk Committee that meets at least once every quarter to review key risks, developments since the previous meeting and the efficiency of mitigating actions. The work of the Risk Committee is presented to the GRC Committee and the Audit Committee on a periodic basis.
Kinnevik’s compliance framework is mainly focused on compliance with the laws and regulations that govern listed companies in Sweden, such as the Nasdaq Stockholm Rule Book for Issuers, the European Union Market Abuse Regulation (No 596/2014), SFSA’s Guide for Listed Companies (Swedish: Vägledning för Börs- och MTF-bolag), and other laws and regulations relating to Kinnevik’s operations and investment activities. The GRC Committee and the Audit Committee receive periodic updates on compliance status.
Sustainability due diligence for new investments
Sustainability is a separate due diligence work stream for all Kinnevik’s new investments in private companies. All potential new investments are evaluated in terms of their sustainability performance and structures, and the key risks are identified. We use the GRC Standards as a basis for the sustainability due diligence, which is conducted through discussions and interviews with the company’s management team. The sustainability due diligence includes, among other aspects, human rights screening and a corruption risk assessment.