Process for Identifying Material Topics
In 2022 Kinnevik conducted an updated materiality analysis with the aim of identifying our material topics from a double materiality perspective. To verify our results, we held a structured dialogue with our key stakeholder groups: shareholders, sell-side analysts, portfolio companies, the Kinnevik Board and the Kinnevik team. The identified material topics have been discussed and agreed in Kinnevik’s management team and by the Board of Directors. The Board bears the ultimate responsibility for the materiality analysis.
Summary of Findings from Stakeholder Dialogues
One of the most important topics raised across stakeholder groups is Kinnevik’s role in creating real positive impact through our portfolio. As an investor, we have a unique position to create impact through our capital allocation and the active support we offer companies. Our stakeholders think we should invest in companies with a strong mission and support them in crystallising their positive impact on the world. Our portfolio companies and shareholders in particular want us to focus on implementing strong ESG strategies in our companies, establishing a social licence to operate, and integrating it into companies’ core business strategies. It is critical to be bespoke and support each company individually in ways that create business value.
A topic raised by shareholders, sell-side analysis and employees in particular is Kinnevik’s ability to attract and retain top talent, which is broadly seen as a key success factor. This requires offering the right incentives, and a culture and way of operating that resonate with people’s personal beliefs. While we have already made strong impact on DEI related to gender, stakeholders believe we have more work to do on ethnicity and other aspects of diversity.
Climate and decarbonisation was highlighted by all stakeholder groups as the most pressing challenge facing humanity globally and investing to combat climate change can be a real differentiator for Kinnevik.
Our Board and sell-side analysts particularly highlighted the importance of implementing sound governance structures in our, often early-stage, companies. Employment conditions, human rights, anti-discrimination and broader business ethics should also remain a high priority for Kinnevik.