Our goals for creating sustainable value

According to Swedfund’s Owner instructions, the organisation shall contribute to the goal of Sweden’s Policy for Global Development (PGD). Swedfund’s overarching mission is to help reduce poverty by making sustainable investments in the world’s poorest countries. Together with our strategic partners, we shall contribute to financially, environmentally and socially sustainable investments that create better living conditions for people living in poverty and oppression.

Swedfund’s strategic goals for sustainable value creation lay the foundation for our business. The goals must be long-term, challenging, measurable, clear and comparable.

Swedfund has a public policy assignment with specific mission objectives focused on sustainable value creation and the 2030 Agenda. Alongside our mission objectives and our financial goal, we have also set a number of targets for our portfolio of investments, measuring the impact of our investments through a number of indicators.

The trends in results are presented for all three pillars (impact on society, sustainability and financial viability), and are illustrated using a number of indicators.

Impact on society

Climate impact

Mission goal: By 2045, the company’s investment portfolio will be climate-neutral.
Definition: Total CO2e emissions per scope (thousand tonnes). Reduced emissions per invested Swedish krona (tCO2e/MSEK). Total emissions avoided (tCO2e).

Gender equality and women’s economic empowerment

Mission goal: Improved gender equality in the company’s investment portfolio. Target level >60% of investments must fulfil the 2X Challenge criteria no later than three years from the investment date.
Definition: Proportion of investments fulfilling the 2X Challenge criteria.
Other goal: Increase in the proportion of women on company boards and in senior positions and the overall workforce
Definition: Development in the proportion of women on boards, in senior management and in total %.

Jobs

Other goal: Increase in the number of employees in a majority of companies in the portfolio.
Definition: Number of jobs in the portfolio. Number and proportion of companies showing growth in jobs. Number of indirect jobs in the portfolio.

Tax revenues

Other goal: Increased tax revenues overall in the portfolio.
Definition: Taxes and other similar items (as a minimum corporation tax) translated to Swedish kronor (SEK).

Sustainability

Decent working conditions

Mission goal: Decent working conditions in accordance with the ILO’s Declaration on Fundamental Principles and Rights at Work shall be provided by all the company’s investments within no more than three years from the date of investment.
Definition: Proportion of investments complying with the ILO’s fundamental conventions.

Environment and social management system

Other goal: Environmental and social management systems shall be implemented by all of the company’s investments by no later than three years from the investment date.
Definition: Proportion of investments that have implemented environmental and social management systems.

Business integrity management system

Other goal: A management system for combating corruption shall be implemented by all of the company’s investments by no later than three years from the investment date.
Definition: Proportion of investments that have implemented a business integrity management system.

Financial viability

Economically sustainable investments

Mission goal: Turnover and profitability shall increase over a five-year period, with the investment year as the base year. Target level > 60%.
Definition: Proportion of investments reporting increased turnover and profitability with the investment year as the base year
Other goal: Increased proportion of holdings in the fund portfolio with a positive return.
Definition: Proportion of funds in the fund portfolio reporting a positive IRR.
Mission goal: Increased mobilisation of private capital. Target >30% mobilised capital in investments made by Swedfund
Definition: Total private capital mobilised relative to Swedfund’s contracted investment volume.

Financial goal

Operating profit

Operating profit to be greater than zero over a five-year period.

2X Challenge

The 2X Challenge is a G7 initiative aiming to boost investment in women’s development. Swedfund joined the initiative in 2019. This means that we invest in companies that are owned or managed by, or employ, many women, that produce goods or services or offer capital to women.