We have produced some sustainability guidelines on the basis of Ferd’s vision and values and strategy to guide us in our day-to-day work.
Our role as an active owner gives us the influence to create sustainable change. Historically, strong corporate governance has been an important element in how we exercise active ownership, and we can see that our influence as an owner contributes to long-term value creation. Going forward, we will also implement a more structured approach to how we integrate environmental and social considerations into our ownership agenda at our portfolio companies. Environmental, social and governance (ESG) considerations shall be integrated into our investment analysis, decision-making, ownership and report on all our activities.
Where we are invested without having direct influence, we will, as an active investor, seek to influence companies and external managers to work on sustainability in a way that is relevant to their activities. We will enter into dialogue with them to communicate our expectations on how they address sustainability and how we will monitor this over time. This engagement will potentially lead to exits from our investment if the company or fund does not make progress on ESG matters to our satisfaction. Due to of our position and size, we believe that our voice will be heard both by individual companies and external managers alike.
Innovation and initiatives
Our vision – to create enduring value and to leave clear footprints – is not static but demands that we constantly looks for new ways to fulfil it as the world evolve. Ferd has historically dared to think innovatively and to take new initiatives, largely thanks to our valuesspirit of adventure and willingness to take.. We have contributed to ground-breaking individual initiatives, new ownership teams and investment strategies, helped change attitudes, and have also set precedents of significance to society. This type of innovation is important to solve the sustainability challenges. We will continue to focus on creating solutions for sustainable development, and will continually challenge ourselves and our companies to think innovatively and to see commercial opportunities in light of the sustainability challenges that the world is facing. A concrete measure of this is our Impactinvestments that aim to generate both a satisfactory financial return and a substantial positive impact on the world’s sustainability challenges.
We are set to further develop Ferd’s position as an opinion-shaping family company. We cannot solve all the world’s problems, but we can make a difference. We will make the greatest difference by developing and making the most of our existing competitive advantages. We will continue to do what we are good at, and believe that a comprehensive and clearer focus on sustainability will make us even better. We also believe that sustainability will increasingly influence commercial risk factors and opportunities and thereby long-term financial returns. We expect that over time this will affect the composition of Ferd’s portfolio at the overall level. Our contribution to value-creation will, in addition to the financial return we achieve, also be measured on the basis of our ESG contribution. This is essential if we are to follow up on our sustainability targets and the impact they create.
Teamwork and partnerships
Collaborations and partnerships between government, businesses and industrys, and civil society are important for sustainable development. External partnerships will be important in terms of creating synergies and generating a bigger impact than Ferd could on its own. For example, it may be appropriate to work to raise the standards that apply to an industry as a whole, in addition to working at the company level. Teamwork at Ferd will be an important element in our work to realise our potential to contribute to sustainability. Sharing expertise with and collaborating across Ferd’s business units can lead to new ideas and opportunities.
Short-term profit maximisation can conflict with sustainability considerations and long-term value creation. Ferd is in a unique position to make a positive contribution thanks to our ability and willingness to think and act with a long-term perspective. This allows us to think differently about value creation then some other investors – an approach that will combine sustainable development with a strong financial return over time.