Implementing Sound Governance Structures in Our Portfolio
Many of our companies are in the early stages of their operational and sustainability development, and implementing sound business conduct structures is central. This work is part of a broader effort to create holistic and bespoke ESG strategies to enable sustainable growth.
During 2022, we have worked together with the Boards and management teams of our nine new portfolio companies to set up more structured processes to improve governance and controls. We have supported several companies in conducting a materiality assessment to determine material topics and set a baseline to build from. We also continued to work with all our existing companies to improve their internal control environment, risk management, compliance frameworks and cyber security.
Governance Structures at Kinnevik
Kinnevik’s Board of Directors is responsible for our overall strategy, including how sustainability is an integrated part of our value creation, and is well informed about Kinnevik’s policies and procedures. Further, the Board of Directors is specifically responsible for identifying risks and opportunities related to sustainability, including climate change, that may impact Kinnevik, our portfolio and strategy, and for defining appropriate guidelines to govern Kinnevik’s conduct in society. This is embedded in the work and delegation procedures of the Board of Directors.
All Kinnevik employees’ individual annual objectives, which form the basis for their short-term incentives, are derived from our overarching corporate targets which include targets related to sustainability. For example, members of the investment team have individual annual objectives tied to driving climate and DEI (diversity, equity and inclusion) engagement in their respective portfolio companies.