As a hands-on owner, Cevian creates value by driving improvements at its portfolio companies to increase long-term competitiveness and profitability in a sustainable way.
Cevian’s conviction is that there is no conflict between ”values” and ”value” – in fact in today’s world, they are fully symbiotic. ESG considerations impact companies’ business opportunities, revenues, costs, risks, employee engagement, societal attitudes and corporate valuations. The extent of this impact will increase over time.
Thus, Cevian advances ESG initiatives at its companies for two reasons:
ESG considerations are integrated into Cevian’s fundamental analyses to identify investment opportunities, value-creation potential and possible risks.
Cevian advances ESG initiatives to increase the long-term and sustainable value of its companies. ESG is a core part of Cevian’s value-creation toolkit (alongside its other value-creation tools, eg improvements to operations, corporate strategy/organizational structure and financial management).
On March 3, 2021, Cevian released a statement on incorporating ESG metrics into the senior management compensation plans for European public companies. That statement is available here.