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.
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.
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.
of our companies have a Code of Conduct
of our companies have an Anti-corruption policy
of our companies have a Health and safety policy
of our companies have a Whistleblowing channel
of our companies have signed the UN Global Compact
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).
reduction of greenhouse gas emissions from Investor compared to 2016
reduction of greenhouse gas emissions from our portfolio compared to 2016
of our companies have relevant reduction targets related to their value chains
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.
nationalities represented in the boards
women in the boards
nationalities represented in the management groups
women in the management groups
of our companies have a target related to diversity
of our companies measured the perceived level of inclusion among their employees