Targets and Outcome

Investor is committed to generate an attractive long-term total return. Our return requirement is the long-term risk-free interest rate plus an equity risk premium, in total 8-9 percent annually. Our operating priorities are to grow our net asset value, operate efficiently and to pay a steadily rising dividend.

Operating Priorities

1. Grow our net asset value

To achieve attractive net asset value growth, we own high-quality companies and are an engaged owner, supporting our companies to achieve profitable growth. We strive to allocate our capital wisely.

Progress in 2019:

Our adjusted net asset value amounted to SEK 485.0bn at year-end 2019 (372.0), a change, with dividend added back, of 33 percent (–1).

2. Operate efficiently

Investor maintains cost discipline to remain efficient and to maximize operating cash flow.

Progress in 2019:

Management costs amounted to SEK 513m (478), corresponding to approximately 0.11 percent of our
adjusted net asset value (0.13).

3. Pay a steadily rising dividend

Investor's dividend policy is to distribute a large percentage of the dividends received from Listed Companies, as well as to make a distribution from other net assets corresponding to a yield in line with the equity market. The goal is to pay a steadily rising dividend.

Progress in 2019:

The Board of Directors proposes a SEK 14.00 dividend per share (13.00), to be paid in two installments, SEK 10.00 per share in May, 2020, and SEK 4.00 per share in November, 2020. Based on this proposal,
on average our dividend has increased by 9 percent annually over the past five years and 13 percent over the past ten years.

 

Sustainability Targets


1. Business Ethics & Governance

Governance and business ethics constitute the foundation for our sustainability approach. The Investor Sustainability Guidelines, which define the expectations applicable to Investor and all Investor's portfolio companies to conduct their operations in a responsible and ethical manner. They require, among other things, that Investor and its portfolio companies have adequate policies, processes and resources to manage and monitor business ethics, and that they have secure whistleblowing systems in place. Investor has zero tolerance for non-ethical business behavior.

Progress 2019

100%

of our companies have a Code of Conduct

100%

of our companies have an Anti-corruption policy

100%

of our companies have a Health and safety policy

100%

of our companies have a Whistleblowing channel

95%

of our companies have signed the UN Global Compact

Read more about business ethics and governance here

 

2. Climate & Resource Efficiency

Investor is committed to climate targets aligned with the Paris Agreement and has set targets to halving its greenhouse gas emissions by 2030. Investor's targets for 2030 are:

  • To reduce Investor's greenhouse gas emissions by 50 percent by 2030 compared to 2016 (Investor's Scope 1 and Scope 2 emissions).
  • To reduce greenhouse gas emissions from the total portfolio by 50 percent by 2030 compared to 2016 (the portfolio companies' Scope 3 emissions).
  • To ensure that all portfolio companies have relevant reduction targets related to their products, services and/or value chains (the portfolio companies' Scope 3 emissions).

Progress 2019

 

10%

reduction of greenhouse gas emissions from Investor compared to 2016

29%

reduction of greenhouse gas emissions from our portfolio compared to 2016

41%

of our companies have relevant reduction targets related to their value chains

Read more about targets and progress here

 

3. Diversity & Inclusion

Investor strives for diversity across all dimensions: nationality, age, gender, education as well as differences in mindsets and experiences. Investor's targets for 2030 are:

  • Investor and all portfolio companies measure the perceived level of inclusion among employees on a regular basis.
  • To maintain a gender balance of 40/60 in Investor's group management.
  • To reach a gender balance of 40/60 in the portfolio companies' board of directors and executive management teams from an overall portfolio perspective, meaning at least 40 percent of the underrepresented gender.

Progress 2019

15

nationalities represented in the boards

25%

women in the boards

21

nationalities represented in the management groups

24%

women in the management groups

77%

of our companies have a target related to diversity

59%

of our companies measured the perceived level of inclusion among their employees

Focus Areas

We create value for people and society by building strong and sustainable businesses

Webcast Interim Report Q2 2020

Webcast

Interim Report January-June 2020

Read the report here