Climate Change Data

Environmental Metrics

ESG Focus Areas

• Active ownership
• Sound governance and business practices
• Sustainable economic performance
• Team, diversity and well-being
• Environmental impact

Environmental Achievements

• Generated 645 tonnes of CO2e in total, corresponding to 17.6 tonnes per full-time equivalent employee. Kinnevik is carbon neutral through offsetting emissions via a community-based reforestation initiative in Nicaragua.

Social Achievements

• Improved GRC scores for most investee companies (e.g., Betterment implemented a robust risk management framework; Global Fashion Group mapped their supply chain and audited suppliers). 44% of Kinnevik's employees were women. New hire rate of 22%, turnover rate of 8%.

Governance Achievements

• Most investee companies improved their GRC scores. Enhanced risk management frameworks across large portfolio companies. Sustainability due diligence undertaken for all 10 new investments in 2018. A portion of the investment team’s compensation is linked to the development of team members’ respective investee companies’ GRC performance and scores.

Climate Goals & Targets

Environmental Challenges

• Main challenge for investee companies is setting the right tone at the top on GRC and sustainability. Early-stage companies struggle with balancing GRC development and growth. Many companies are in early stages of development regarding information security.
• Balancing GRC development and growth in early-stage companies.

Mitigation Strategies

• Agreeing on sustainability “roadmaps” for new investee companies and improving business continuity processes across the portfolio. Continuous operational support, review and implementation of GRC workstreams, policies and procedures, participation in financing rounds.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• GRC Standards for investee companies include supply chain compliance.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Deloitte AB (Limited assurance)

UN Sustainable Development Goals

• SDG 3, SDG 5, SDG 12, SDG 16, SDG 17

Kinnevik's investments and operations contribute to these goals through various initiatives (e.g., Babylon for healthcare access, Karma for reducing food waste, BIMA's anti-corruption partnership).

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sound Governance Structures and Economic Growth
• Social Responsibility and Good Corporate Citizenship
• Reduced Climate Impact

Environmental Achievements

• Compensated for all CO2e emissions through a reforestation initiative.
• Generated 659,645 tonnes of CO2e in total, corresponding to 16.6-17.6 tonnes per full-time equivalent employee. Largest impact was Scope 3 (business travel).

Social Achievements

• Launched a Diversity & Inclusion Framework with four overarching targets (40/60 gender composition by end of 2022, 10% female capital, no follow-ons without diversity progress, leadership measured on D&I).
• No significant issues regarding human rights, equal opportunities, or work environment indicated in the 2019 employee survey (95% would recommend Kinnevik as an employer).

Governance Achievements

• Maintained sound corporate governance structures, including a Risk, Compliance & Sustainability Committee and a Risk Committee.
• No reports received to the whistleblower service during 2019.

Climate Goals & Targets

Environmental Challenges

• Portfolio concentration in terms of size of specific companies and sectors, and share of private companies.
• Liquidity risks affecting financing and availability of funding.
• Inability to find female-founded or led companies to reach the target of 10% capital allocation.
• Inability to source female talent for investee companies’ boards and management teams.
• Monotonous tasks and lower level of influence for some employee groups, particularly in fashion e-commerce and food, leading to potential psychosocial health issues.
• Elevated risk of human rights violations in the supply chain for some companies, particularly in fashion e-commerce.
• Negative climate impact through business travel (95% of emissions in 2019).

Mitigation Strategies

• Dynamic capital allocation to maintain a balanced portfolio across stages, tenures, sectors, and geographies.
• Leveraging investments and dividends from investee companies to cover funding needs; debt up to 10% of portfolio value.
• Expanding the pipeline of potential investments; actively seeking female-founded/led businesses.
• Working with nomination committees in public companies to ensure diverse board candidates.
• Structured onboarding programs, health & safety training, and leadership development programs for employees.
• Active whistleblower hotlines.
• Supplier Codes of Conduct, risk-based audits, and corrective action plans.
• Offsetting emissions from business travel through a reforestation initiative.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards Core option, UN Global Compact

Third-party Assurance: Deloitte AB (limited assurance)

UN Sustainable Development Goals

• Goal 8.1
• Goal 16.5
• Goal 16.6
• Goal 5.5
• Goal 8.8
• Goal 17.16
• Goal 13.2
• Goal 12.5
• Goal 12.6
• Goal 3.7
• Goal 3.8
• Goal 1.4

Many portfolio companies contribute to the Global Goals through their core business models.

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility and Reduced Climate Impact
• Social Equality and Good Corporate Citizenship
• Sound Governance Structures and Economic Growth

Environmental Achievements

• Greenhouse gas emissions from Kinnevik’s operations excluding the portfolio during 2021 are in line with the corresponding emissions in 2020. The emissions during 2021 and 2020 are at a considerably lower level compared to 2019, 2018 and 2017 which is mainly the result of significantly less business travel due to the spread of the Coronavirus. In 2021 we also updated our policy for air travel.
• Kinnevik has ordered and paid to have our 2021 emissions, excluding emissions from the portfolio, amounting to 92 tonnes of CO2e, permanently removed through Climeworks’ direct air capture and storage solution
• Share of women in Kinnevik’s Management Team has increased from 43% at year-end 2020 to 50% at year-end 2021. For the Investment Team, the share has increased from 23% to 38% at year-end 2021. Per March 31, 2022, the share of women in the Investment Team was 47%. The Corporate Team ended the year with 73% women

Social Achievements

• In May 2019, Kinnevik launched a diversity and inclusion (”D&I”) framework with four explicit targets to drive the important change we want to see at Kinnevik, in our portfolio and the broader industry. Since then we have received the 2021 Allbright Award, been named a 2021 best practice leader by the European Women on Boards, ranked #1 in Sweden and #62 globally in Equileap’s 2021 Global Report and made progress on all four targets.
• In September 2021, we engaged Diversio, a Canadian people intelligence platform and leading D&I solution provider for investors, to help us collect and analyse broader internal D&I data
• In 2020, Kinnevik first participated in the Diversity VC Standard assessment and thereby became the first investor globally to be awarded a level 2 certification, the highest certification level available.

Governance Achievements

• Kinnevik’s total shareholder return (”TSR”) amounted to 29% for 2021. The five-year annualised TSR was 30% and the ten-year annualised TSR was 23%, per 31 December 2021
• In November, Kinnevik issued our first ever sustainability-linked bonds. The final redemption prices of the bonds depend on Kinnevik’s ability to meet annual sustainability performance targets
• Kinnevik’s Board is responsible for internal control in accordance with the Swedish Companies Act (Swe: Aktiebolagslagen) and the Swedish Corporate Governance Code

Climate Goals & Targets

Environmental Challenges

• Inability to deliver on our climate targets for the portfolio
• Inability to source female-founded or female-led companies and achieving our 10% capital allocation target
• Inability to source female talent to portfolio companies’ boards and management teams
• Portfolio concentration in terms of the relative size of specific companies and sectors
• Global economic downturn affecting the liquidity, volatility and valuation of tech stocks

Mitigation Strategies

• Kinnevik’s Sustainability Team together with the Investment Team are working closely with the management teams of the portfolio companies to raise awareness around and drive Kinnevik’s climate strategy
• Kinnevik is actively working to expand our existing pipeline of potential investments and to broaden our exposure to female founded and led businesses through conferences, sponsorships and a wide variety of networks
• Kinnevik’s Chief People & Platform Officer provides our companies with hands-on support related to recruitment and screening of candidates
• Through our investment management activities and a dynamic allocation of capital, Kinnevik seeks to maintain a balanced portfolio across stages and maturity, sectors, share of public vs. private and geographies
• Having conducted several stress tests on our portfolio and financial position before and during the COVID-19 pandemic we had a good view of the potential financial needs of our portfolio.

Supply Chain Management

Responsible Procurement

• Supplier Codes of Conduct

Climate-Related Risks & Opportunities

Transition Risks

• Inability to deliver on our climate targets for the portfolio

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact, TCFD, SASB

Third-party Assurance: KPMG AB (limited assurance)

UN Sustainable Development Goals

• Goal 3
• Goal 7
• Goal 8
• Goal 12
• Goal 13
• Goal 16
• Goal 17

Many of our portfolio companies contribute to the Global Goals by virtue of their core business models

Awards & Recognition

• 2021 Allbright Award
• 2021 best practice leader by the European Women on Boards

Environmental Metrics

ESG Focus Areas

• Active Ownership
• Climate Impact
• Diversity, Equity & Inclusion
• Corporate Governance

Environmental Achievements

• Decreased emissions intensity in Kinnevik’s portfolio by 14% year-over-year in 2022 (exceeding the target of 7%).
• Reduced greenhouse gas emissions from Kinnevik’s operations by 32% from 2019 to 2023.

Social Achievements

• Ranked first in the Venture Capital category in the Honordex Inclusive PE & VC Index for the third year in a row.
• Ranked as the only investor among Equileap’s top companies in Sweden for gender equality.
• 91% of portfolio companies made progress on DEI during 2023.

Governance Achievements

• CDP rated Kinnevik in the top 5% of fully 23,000 companies for climate disclosures in 2023.
• Average 2023 ESG score across the portfolio increased by 10 percentage points compared to 2022.

Climate Goals & Targets

Environmental Challenges

• Several companies did not meet performance expectations, impacting Net Asset Value.
• Babylon Health liquidation.
• Struggles of consumer-facing companies like Oda/Mathem and Instabee.
• Challenging market backdrop.
• Uncertainty around valuation levels due to challenges in sharing confidential investee financial information.

Mitigation Strategies

• Doubled down in highest-conviction companies.
• Limited deployment into companies lacking traction.
• Supported the merger of Oda and Mathem.
• Concentrated portfolio.
• Scrutinized and revised down investee company budgets and plans, contracted valuation multiples, and made larger downward revisions in carrying values of smaller investments.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct based on international standards (being rolled out or already in place across portfolio companies).

Climate-Related Risks & Opportunities

Physical Risks

• Temperature extremes
• Fluvial flooding

Transition Risks

• Market shifts
• Reputational damage
• Policy & legal changes

Opportunities

• Development of low-carbon products and services.
• Investment in climate tech.

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD, SASB, UN Global Compact

Third-party Assurance: KPMG AB (limited assurance)

Awards & Recognition

• First place in Venture Capital category of Honordex Inclusive PE & VC Index 2023
• Top 10 list in Sweden for gender equality by Equileap
• A- score in CDP for 2023