Sustainability - a prerequisite for long-term value creation

As a family-owned investment company, we have a long-term approach and we develop our portfolio companies in a sustainable way. We at Ahlström Capital believe that sustainability is a prerequisite for creating long-term value. At Ahlström Capital, we are committed to promoting responsible business practices in our portfolio companies and to conducting sustainable asset management of our real estate and forest investments. Our values – ambition and responsibility – guide all our operations. The Sustainability Policy defines the framework for Ahlström Capital’s sustainability work.

As a responsible investor, we continuously improve our environmental, social and governance (ESG) impact and performance in our own operations and in our investments. As an owner, we can contribute most to a sustainable ecology and the development of society through the capital we provide, the engaged ownership role we take and through the employment, innovations, products and services that our portfolio companies provide.

As an owner, Ahlström Capital’s primary influence is through board representation. Sustainability is integrated in the value creation plans developed for each portfolio company. Our material ESG topics have been identified and are incorporated in the screening processes and business development work of our portfolio companies. We evaluate in the investment process whether there is an opportunity for us to impact the development of the target company towards sustainable business transformation. We also assess the ESG risks and opportunities related to each investment case. In 2021, Ahlström Capital acquired M&J Recycling, the waste recycling business of Metso ­Outotec. This acquisition broadens Ahlström Capital’s portfolio in the field of circular economy and offers us the opportunities for sustainable value creation.

In the business development work of our existing portfolio, we follow both the ESG focus areas defined by Ahlström Capital and the industry specific ESG topics that are material for the portfolio companies. All our portfolio companies need to manage, monitor and evaluate ESG risks, opportunities and value creation possibilities. The Board of Directors of the portfolio companies are expected to decide on relevant targets for each company. We monitor the development and discuss the actions and targets set for a sustainable development of each company.