Fulfilment of Kinnevik’s Climate Targets
Kinnevik has two climate targets to reduce greenhouse gas (”GHG”) emissions and to align our portfolio and organisation with a low-carbon economy:
- Reduce greenhouse gas emission intensity in Kinnevik’s portfolio by 50% in 2030, with 2020 as base year (scope 3 category 15 Investments)
- Reduce greenhouse gas emissions from Kinnevik’s operations by 50% in 2030 and by 90% in 2050, with 2019 as base year (scope 1-3 excluding category 15 Investments)
In 2022, the six companies included in Kinnevik’s portfolio target calculation (35% of portfolio value by 31 December 2022) decreased their emissions intensity by 14% year-over-year, thus exceeding our annual target of 7%. More information about methodology and included companies is available in our Climate Progress Report.
To reach our target for our own operations by 2030, we updated our travel policy with more restrictions related to air travel. In addition, at the start of 2023, we analysed Kinnevik’s emissions from air travel to facilitate better internal travel planning from an emissions efficiency perspective. The analysis was done for both the management team and the different investment teams.
Overview of Kinnevik's own emissions
(scope 1-3 excluding category 15 Investments)
Kinnevik’s emissions during 2020 and 2021 were materially lower compared to 2019 and 2022, which is the result of significantly less business travel due to the spread of the Coronavirus. In 2022, three new categories were added in scope 3; employee commuting, upstream leased assets and downstream leased assets. This increased our 2022 emissions compared to 2021 by 11 tonnes CO2e like-for-like. We aim to continue developing our reporting going forward. An account of our portfolio emissions is available in our Climate Progress Report 2022.
|Kinnevik's GHG emissions|
|Per full time equivalent employee||12.9||2.2||2.3||7.3|
|Per square metre office space||0.66||0.12||0.12||0.27|
Our Climate Strategy
As an active owner, Kinnevik wants to inspire our portfolio companies to appreciate the business value of contributing to global carbon neutrality. With support from external consultants and data service providers, we assist our companies in conducting a materiality analysis to identify their emissions in scope 1, 2 and relevant categories in scope 3. We also support our companies in setting relevant climate targets across their operations and value chains to align with actions needed to limit global temperature rise to 1.5˚C above pre-industrial levels as stipulated in the Paris Agreement.
Ultimately, our aim is to align our portfolio with a low-carbon future, to mitigate climate risk and to seize climate-related opportunities. We back digital businesses that contribute to a more sustainable future by combining strong economic growth with a positive impact on people and the planet. These companies will be able to offer better products and services that meet the demands of their customers, get better access to capital and attract top talent, thereby outperforming their competitors in the long run.
Following up on our emissions intensity target for the portfolio
In our inaugural Climate Progress Report, we follow-up on the fulfilment of Kinnevik's annual greenhouse gas emissions intensity target for the portfolio. Between the years 2020 and 2021, the emissions-reporting companies in Kinnevik’s portfolio have decreased their emissions intensity by 11%, thus achieving our annual target of 7%
Following Up on Our Target
Kinnevik set two climate targets in May 2020, a net zero target for our operations excluding the portfolio and a target to achieve 50% reduction in greenhouse gas emission intensity in Kinnevik’s portfolio by 2030 compared to 2020. In 2021, the portfolio climate target was integrated into our Sustainability-Linked Financing Framework ("the Framework") and translated into an annual reduction target, namely, to achieve a reduction in greenhouse gas emissions intensity in the portfolio by 7% annually, until 2030.
The objective of our inaugural Climate Progress Report is to follow-up on the fulfilment of Kinnevik’s annual intensity reduction target and report on the performance against the Climate Sustainability Performance Target of our outstanding Sustainability Linked Bonds issued under the Framework in November 2021 (ISIN SE0013360534 and ISIN SE0013360542).
Target Fulfilment in 2021
Our main measurement model, the change model, aims to measure the change in greenhouse gas emissions intensity on a year-over-year and company-by-company basis. Between the years 2020 and 2021, according to the change model, the six companies in Kinnevik’s portfolio reporting emissions have on aggregate and on a value-weighted basis, decreased their emissions intensity by 11%, thus achieving our target for 2021. We will report on progress according to our climate targets annually.
Overview of Total Portfolio Emissions
In addition to the main objective to follow-up on our climate target for the portfolio, the Climate Progress Report also includes an overview of the total emissions from Kinnevik’s portfolio. The overview includes the actual carbon dioxide equivalents of our emissions-reporting companies as well as an estimate of the emissions from our largest non-reporting portfolio companies. In the overview, we have included the estimated scope 1 and 2 emissions for the non-reporting companies, consistent with the PCAF Standard.
"Climate change is one of the greatest global environmental and economic challenges of our time and we have a unique position to influence our companies to become sustainability leaders and to align with a low-carbon future. I am proud of the progress made in our portfolio companies and impressed by their ability to scale rapidly while decreasing greenhouse gas emission intensity. With this report we also want to increase transparency towards Kinnevik’s stakeholders and drive the development in our sector with regards to emission disclosure and target follow-up"
Georgi Ganev, Kinnevik's CEO