Responsible ownership
Sustainable business is about using resources more efficiently, paying attention to social and environmental issues and developing profitability. A prerequisite for a long-term competitive return is the efficient management of sustainability risks and the ability to develop and capitalize on opportunities that arise when conditions change. Lundbergs believes that long-term profitability and sustainability are closely connected.
Lundbergs invests in companies and operations in areas where it has expertise and, as a long-term owner, it accepts a clear responsibility. Investments focus on companies that have solid market positions, strong and stable cash flows as well as their own products and brands.
Through active ownership, financial strength and access to funds, stability and freedom of action are created for the companies to develop and invest in innovations, products and ser- vices that generate sustainable and profitable operations. In this way, Lundbergs takes its societal responsibility through sound values and stable finances.
Direct and indirect sustainability impacts
Lundbergs comprises of wholly owned companies and shareholdings in publicly listed companies. These two types of ownership form the foundation for managing sustainability issues. In the wholly owned companies, Lundbergs has direct influence over sustainability issues in terms of strategies, operational implementation and reporting. Lundbergs influences its publicly listed portfolio companies through its active ownership. The management and responsibility for sustainability strategies, implementation and reporting lay with the boards of directors and management teams of the respective companies. Accordingly, Lundbergs’ sustainability impact occurs indirectly through its work on the boards of directors of the publicly listed companies.
The sustainability perspective is an important and integrated part of Lundbergs’ business model, in which a long-term approach and sustainability are interdependent. The purpose of this committed and active ownership is to create long-term value and growth.
Significant sustainability issues
To develop the portfolio companies and their values over time, it is important for Lundbergs to understand how the business climate develops and changes. Global trends such as globalization, urbanization and digitalization, as well as opportunities and risks that result from climate change are all features of the continuous business intelligence analysis under way in the company.
The most material and business-critical sustainability issues for Lundbergs have been identified on the basis of a risk and opportunity perspective through business intelligence, industry analysis, sustainability analysis in the value chain and discussions in Lundbergs’ management. The issues are dealt with in regular risk-management and organizational-development processes.
The portfolio companies differ in type and span varying operations and geographic areas. The sustainability challenges are complex and each company needs to analyze the sustainability of its operations. The operation-critical sustainability topics listed below have been deemed as the most relevant for Lundbergs’ key stakeholders:
Shareholder value
Financial stability
Long-term and sustainable business models that contribute to long-term and sustainable profitability
Responsible governance by encouraging the utilization of sustainability-related business opportunities and managing sustainability risks
Climate and gender equality work conducted on the basis of distinct goals within a specific time frame
Responsible investments through active ownership and stakeholder dialogs
Responsible employer