Solidium’s most central influence in corporate responsibility matters is realised through its core task as an owner. The boards of directors of Solidium’s portfolio companies are responsible for managing corporate responsibility and the associated reporting. However, sometimes corporate responsibility issues may become so extensive that they impact shareholder value. That is why Solidium monitors the realisation and reporting of corporate responsibility in the portfolio companies and, when necessary, addresses issues through channels available for an active owner.
Solidium’s objective is
- to maintain and develop its operating model of responsible ownership
- to increase the awareness of responsible ownership, primarily through its own operations.
Its vision is to be a professional and responsible owner, which implements corporate responsibility in the long term and in a manner that increases added value. We pursue a good level of corporate responsibility in an appropriate and resource-efficient manner.
Solidium’s vision is to be a professional and responsible owner, which implements corporate responsibility in the long term and in a manner that increases added value.
Corporate responsibility and shareholder value
Our most important and far-reaching impacts on responsibility are achieved through our mandate as an owner. Our objective is to grow the financial value of our holdings over the long term. Corporate responsibility provides a good perspective to assessing holdings and growing value, and often it is also one of the characteristics of good management.
Corporate responsibility is relevant to the competitiveness of companies in many ways. Traditionally, the perspective of risk management is emphasised in corporate responsibility. However, new successful business can also be built on the needs arising from sustainable development.
The strategic importance of corporate responsibility matters varies widely among Solidium’s portfolio companies. In companies which build new business on responsibility trends, corporate responsibility is a strategic competitive factor by default. The role of corporate responsibility matters often varies from one industry to another. Their importance is also associated with the degree to which companies’ business operations are global and their geographical location. The companies’ own history and traditions in the management of responsibility matters define their current situation.
As a responsible owner, Solidium finds it important to identify the key corporate responsibility themes in each portfolio company and their potential impacts on shareholder value. The impacts on shareholder value may be positive or negative. They can be realised either directly or indirectly. The timespan of the realisation of the impacts may be long or short.
As a responsible owner, Solidium finds it important to identify the key corporate responsibility themes in each portfolio company and their potential impacts on shareholder value.
Frequently updated responsibility analysis on portfolio companies
Solidium also finds it important to assess the preparedness of the portfolio companies to ensure their responsibility, in other words, the sufficiency of the corporate responsibility resources against the needs. However, it often requires a crisis to demonstrate the level of corporate responsibility management and the extent to which corporate responsibility has been integrated with corporate culture.
We frequently discuss corporate responsibility matters and the state thereof with the management of each portfolio company. The focus of these discussions is on responsibility matters central to shareholder value and on topical challenges in corporate responsibility. Solidium’s own frequently updated responsibility analysis on each portfolio company forms a solid foundation for the interaction between the company and the owner. Analysis, dialogue and influencing are frequent processes in responsibility work.
Sometimes corporate responsibility matters that affect shareholder value may arise in portfolio companies. In such situations, Solidium strives to influence the issues, if needed, through channels available for an active shareholder.
Integrated operating method
Corporate responsibility is an integrated part of Solidium’s operations. Solidium’s investment professionals conduct the responsibility analyses on the portfolio companies as part of their work. Thus, the assessment of the materiality and impacts of corporate responsibility matters is embedded in the other financial and strategic analysis conducted on the portfolio companies. The responsibility perspectives become integrated in the other analyses and assessments that the owner conducts of the companies.
Solidium’s responsibility analyses of the portfolio companies are conducted by each company’s designated investment team. The investment teams are also responsible for maintaining and developing their own competence in corporate responsibility matters that are central to their designated portfolio companies.
Solidium’s Board of Directors is responsible for arranging the management of corporate responsibility and integrating it into the business operations at Solidium. It confirms the objectives and operating principles of corporate responsibility as part of Solidium’s strategy and is in charge of the reported corporate responsibility information. The Board also supervises the responsibility work.
Solidium’s Board of Directors confirms the objectives and operating principles of corporate responsibility as part of Solidium’s strategy.
One of the investment directors manages and develops our corporate responsibility work alongside their own duties, and an internal corporate responsibility team is responsible for coordinating the work. Solidium does not have a full-time corporate responsibility specialist on staff.
Solidium’s corporate responsibility reporting
Solidium’s corporate responsibility reporting aims to describe the importance and realisation of responsible ownership and corporate responsibility in our operations, our accomplishments during the past financial year, and the goals for the upcoming financial year. Solidium’s corporate responsibility report is intended for the use of all Solidium’s stakeholders.
We have included corporate responsibility and responsible ownership reporting in our Annual Reports since the 2009–2010 financial year. We have applied the GRI (Global Reporting Initiative) model ten times in our reporting, including the Annual Report for the 2020–2021 financial year.