Outcome – sustainability KPI’s
We support our companies’ efforts to create sustainable business models, continuous development and the improvement of their social, environmental and economic impact. Measuring sustainability performance is an important tool to understand the development in our portfolio companies. In the following section, key indicators for the most relevant sustainability areas are presented, for Listed Core Investments, Patricia Industries (wholly-owned subsidiaries and partner-owned investments) and EQT (EQT Group, referring to EQT AB and EQT Partners AB, excluding funds).
INNOVATION AND SUSTAINABLE BUSINESS MODEL
To ensure long term competitiveness, the continuous improvement of our companies is highly important. Innovation is a key component in the development of new and increasingly efficient products and services, and, consequently, sustainable business models. The share of resources spent on R&D varies.
Dedicated, skilled and healthy employees are fundamental to our companies’ development. With nearly 500,000 coworkers worldwide, it is crucial that our companies work with competence development, employee engagement and ensuring a healthy work environment. These figures refer to the number of employees per year-end and are not adjusted for investments or divestments within the companies.
95% of our portfolio companies measure employee satisfaction on a regular basis.
Acting responsibly and ethically is crucial for Investor’s companies to maintain high levels of credibility among business partners and other stakeholders. The Code of Conduct and policy frameworks are important components for employees and stakeholders to act responsibly and in accordance with corporate values.
100% of our portfolio companies have a Code of Conduct.
In our history of more than 100 years, Investor has created value through our companies’ activities, rendering returns for our companies’ shareholders as well as our own. We aim to set a good example when it comes to conducting business in a sustainable way. Our indirect economic influence contributes to job creation and technological innovation in our companies.
In 2017, our total dividend amounted to SEK 8.4 bn., whereof almost SEK 2 bn. was distributed to the Wallenberg Foundations. These foundations’ purpose is to grant funding to scientific research in Sweden, which in turn benefits many companies, including ours.
Investor does not tolerate bribery or corruption under any circumstances. We refrain from giving and receiving any inducements, including gifts or other benefits, that could risk creating an unhealthy loyalty or be perceived to do so. Investor expects all our companies to assess the risk for bribery and corruption and have applicable policies, trainings and compliance procedures in place to mitigate the identified risks.
Example from our companies:
Our companies within Patricia Industries have intensified their work against bribery and corruption during the year. Among others, BraunAbility, Laborie, Permobil and Vectura have strengthened their policies and guidelines and have conducted company-wide trainings, e.g. classroom training, e-Learnings and dilemma discussions, to further increase awareness.
100% of our portfolio companies have an Anti-corruption policy and training in place.
Carbon emissions, tonnes/SEK m., sales
Environmental and climate impact are significant issues. As owners, we support our companies in their pursuit of efficient and sustainable products and services, as well as energy efficient processes. In order to contribute to a more environmentally oriented society, we expect our companies to have environmental and sustainability policies which map how they take responsibility for these issues.
Example from our companies:
The companies within Patricia Industries have focused on improving their measurement of carbon emissions to have a better basis for their prioritization and target setting for reducing the emissions from their operations. Permobil, BraunAbility, Laborie, The Grand Group, Aleris and Vectura subsequently made their first measurement of company-wide emissions during the year.
Investor expects all of our companies to comply with all applicable laws, regulations, and appropriate standards in the markets in which they operate. Respect for human rights, reasonable working conditions and freedom of association are key aspects. Investor supports the UN Global Compact and its ten principles as well as the ILO conventions and the OECD guidelines for Multinational Enterprises. We also support and respect internationally proclaimed human rights. This applies to both the companies’ and their suppliers’ and partners’ operations.
85% of our portfolio companies have signed the UN Global Compact.
100% of our portfolio companies have a whistleblowing system in place to report violations.
Example from our companies:
Ericsson has defined its salient human rights issues as the right to privacy, the right to freedom of expression and labor rights. They were the first Information, Technology and Communications company to report according to the UN Guiding Principles Reporting Framework. Ericsson conducts regular due diligence processes, identifying, preventing and mitigating its human rights’ risks in the countries where it is present.
Atlas Copco has increased its focus on opportunities to partner with customers, in order to further understand and address human rights risks in the value chain. The existing customer assessment tool is complemented by in-depth dialog regarding human rights, and field visits, if relevant.
Distribution age, gender and nationalities
We are convinced that diversity is key to success and expect our companies to encourage and promote diversity in their organizations. Over the last years, diversity has improved. However this remains an important area for improvement. In Investor’s Board of Director and Management Group, female representation amounts to 40 percent and 40 percent respectively.
Female representation in the portfolio companies’ Board of Directors amounts to 25 (23) percent. The average age is 57 (57). In total, there are 18 (16) nationalities represented.
Female representation in the portfolio companies’ Management Groups amounts to 25 (25) percent. The average age is 51 (51). In total, there are 23 (19) nationalities represented.