Targets and Outcome
Generate an attractive total return
Our ultimate target is to generate an attractive total return. Our annual return requirement is 8-9 percent (risk-free interest rate plus equity market risk premium). This is achieved through our three strategic priorities; grow net asset value, pay a steadily rising dividend and deliver on our ESG targets.During 2021, our total shareholder return (TSR) was 55 percent (19), while the SIXRXreturn index gained 39 percent (15). Over the past 20 years our annual TSR has averaged 15 percent compared to 11 percent for SIXRX.
Grow our net asset value
Our adjusted net asset value should grow in excess of our return requirement. To achieve this, we own high-quality companies and support them to grow profitably. We also strive to allocate our capital wisely. Our adjusted net asset value amounted to SEK 761bn at year-end 2021 (546), a change, with dividend added back, of 41 percent (14). Consequently, our net asset value growth exceeded our annual
return requirement during 2021. Over the past five years, annual adjusted net asset value growth has averaged 20 percent.
Pay a steadily rising dividend
The Board of Directors proposes a SEK 4.00 dividend per share (3.50), to be paid in two installments, SEK 3.00 per share in May, 2022, and SEK 1.00 per share in November, 2022. Based on this proposal, on average our dividend has increased by 8 percent annually over the past five years and 10 percent over the past 10 years.
Read more about our dividend policy here
Deliver on our ESG targets
Business Ethics & Governance
Governance and business ethics constitute the foundation of our sustainability approach. Investor's Sustainability Guidelines (see page 14) set clear expectations for Investor and our portfolio companies to conduct the operations in a responsible and ethical manner. Investor has zero tolerance for non-ethical business behavior.
of our companies have signed the UN Global Compact
of our companies have a Whistleblowing channel
of our companies have set measurable sustainability targets
In 2021, Investor engaged in a dialog with all portfolio companies regarding sustainability. Investor, as well
as each of our companies, has a Code of Conduct, anti-corruption policy, health and safety policy, Human Rights policy and whistleblowing channel in place.
Climate & Resource Efficiency
Investor AB's emissions
Investor is committed to climate targets aligned with limiting global warming to 1.5°C. Our target is to
achieve net zero greenhouse gas emissions from our scope 1 and 2 by 2030. In 2021, emissions equaled 77 tonnes, a reduction of 35 percent compared to 2016 (26). The emissions from Investor AB are low as Investor has no operating business and its premises have a high proportion of renewable electricity.
Portfolio companies' emissions
Investor's scope 3 target is to reduce greenhouse gas emissions from our portfolio by 70 percent by 2030 compared with 2016 (companies' scope 1 and 2). Investor encourages its portfolio companies to align with the Paris Agreement and when relevant, to commit to Science Based Targets. In 2021, scope 1 and scope 2 emissions from our companies equaled 1,260,500 tonnes, a reduction of 49 percent compared to 2016 (40). 88 percent of our companies have targets to reduce their scope 1 and 2 emissions (78). By the end of 2021, 83 percent of our companies had aligned their reduction targets with the Paris Agreement (57) and 33 percent had committed to Science Based Targets (22).
Read more about the updated climate targets
Portfolio companies' indirect emissions
All our companies shall have targets to reduce emissions from their value chain, for example related to the use of their products (the portfolio companies' scope 3 emissions). In addition, all companies shall have resource efficiency targets relevant to their operations. In 2021, 75 percent of our companies measured
scope 3 emissions (74) and 63 percent had reduction targets related to their products, services or value
chains (43). In terms of resource efficiency, and in addition to scope 3 targets, 63 percent of our companies
have set specific resource efficiency targets (57).
of our companies measure scope 3 emissions
of our companies have a target for scope 3 emissions
of our companies have a resource efficiency target
Diversity & Inclusion
Investor believes that diverse teams characterized by inclusion stimulate innovation and drive better decision-making. Our target is to maintain a gender balance of 40/60 in the Management Group. We measure perceived level of inclusion among employees. Investor measures the perceived level of inclusion among our employees as well as the perception as an individual to make an impact and contribute to the overall strategy. In 2021, employees reported a high level of inclusion compared to external benchmark, scoring 8.9 (8.9)
of the Management Group are women
of the Extended Management Group are women
perceived level of inclusion among employees (scale 1-10)
Investor encourages our companies to promote diversity and inclusion. Our aggregated portfolio targets are to reach a gender balance of 40/60 in the companies' boards and management by 2030. In addition, all our companies shall measure perceived level of inclusion among employees. In 2021, the portfolio companies' board of directors included a representation of 15 nationalities (14) and an average share of women of 34 percent (30). In the portfolio companies' management groups, the share of women was 26 percent (25) and 23 nationalities were represented (23). During 2021, 83 percent of our companies had targets or commitments regarding diversity (83), and 92 percent measured the perceived level of inclusion among employees (87).