Sustainability
Introduction
Poor working conditions, human rights violations, discrimination, environmental impacts and the consequences of climate change are examples of risks in many of the countries where Swedfund invests.
As part of the investment process, we assess companies’ environmental and social risks and impacts, as well as their policies, procedures and management systems. The assessment is based on international standards and risks related to the country, sector and specific business activities. This enables us to identify areas where measures are needed to prevent and mitigate negative impacts.
We work closely with our portfolio companies to strengthen their ability to manage environmental and social risks and develop appropriate management systems. This is done through ongoing dialogue and monitoring, site visits and, where relevant, support through Technical Assistance.
Environmental and social expertise is integrated throughout the investment process, from due diligence and setting requirements to active ownership, monitoring and exit. Our work is guided by international frameworks and standards outlined in Swedfund’s Policy for Sustainable Development.
A systematic approach to environmental and social issues helps prevent and manage risks and strengthens companies’ ability to develop sustainably over time.
Business Integrity
Swedfund takes a systematic approach to Business Integrity to prevent and manage risks related to corruption, fraud, money laundering, terrorist financing and breaches of sanctions, among other areas. These risks are particularly important to address in many of the markets where Swedfund invests.
At the core of this work is Swedfund's Business Integrity Policy which sets out the principles and standards that guide our work. Swedfund requires portfolio companies to have, or implement, appropriate and risk-based management systems for Business Integrity.
Business Integrity is integrated throughout the investment process. We identify and assess potential risks and work with our portfolio companies to strengthen their ability to prevent, identify and manage them. Identified gaps are addressed through action plans and ongoing monitoring. Where needed, Technical Assistance can be used to strengthen portfolio companies’ systems and capacity.