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Sustainability and long-term horizon

Global challenges such as climate change, scarcity of natural resources and securing decent living conditions for an ever-increasing population have set in motion a powerful process of societal change, with the result that legislation, consumption patterns and customer preferences can change quickly.

Storskogen's business model entails creating good long-term returns by acquiring and developing small and medium-sized companies. We do not have an exit agenda when we acquire a company and our intention is to maintain ownership indefinitely.

In order to successfully run a business for the long term, with a large number of subsidiaries in different types of industries, and at the same time maintain a focus on profitability and stable cash flows, Storskogen needs to take sustainability issues into account both before and after it acquires a company.

Sustainable acquisitions

During the initial phases of analysing a possible acquisition, Storskogen strives to identify and analyse various aspects related sustainability and how it might impact the business model of the specific acquisition's future competitiveness and financial position - and thus how attractive the company is as an acquisition candidate. The analysis might relate to environmental issues such as emissions, resources and energy efficiency as well as waste management or social issues such as working conditions, human rights, a responsible supply chain, gender equality and diversity or about good business ethics and anti-corruption. Storskogen may refrain from investing in a company due to complex or costly sustainability risks, or where the business model is not judged to be sustainable in the long term. Storskogen only acquires companies whose offering, prospects and actions are thought to be relevant and attractive to future customers, employees, and society.

Responsible ownership and operations

Storskogen's CEO has the overall responsibility for the Group's sustainability effort. The Group's decentralised ownership model means that each subsidiary's CEO, just as in other strategic matters, is responsible for developing and implementing appropriate sustainability initiatives - which occasionally results in competitive advantages. Storskogen is always represented on the subsidiary boards and has regular formal and informal meetings with the companies. The overall expectation for all companies is that they deliver good operating results by making business-driven and sustainable decisions.

Storskogen's ownership commitment includes:

  • Conduct ongoing discussions with management and the board to identify and act on significant aspects in the areas of environment, personnel, social conditions, human rights and anti-corruption which are expected to affect the company's business model, competitiveness and / or financial position. The conclusions and how they affect the company's strategy shall be presented and discussed in the respective subsidiary board.
  • Set relevant and measurable goals for the most essential sustainability aspects and then carry out activities to achieve them. Follow-up is reported on an ongoing basis to the respective subsidiary board.
  • Develop and implement governing documents and instructions that support the company's sustainability work. Compliance must be followed up annually and reported to the respective subsidiary board.

As an owner, Storskogen is long-term, responsible and committed. This means, among other things, that the subsidiaries are:

  • Supported with a structured board, tools, advice and practical experience to make well-founded decisions.
  • Provided the financial strength that enable the investments required to remain competitive in the long term.
  • Given access to an internal network of skilled employees for the exchange of ideas and experiences as well as an external network of potential customers, suppliers and partners.

Local connections

Storskogen have historically mainly acquired small and medium sized entrepreneurial companies based in smaller towns around Sweden. The companies are often an important local employer and partner. After acquisitions, the companies in principle always continue with their operations in the locality. In addition to helping to keep local communities alive, Storskogen believes that value is best created through local know-how and proximity to the customer. Success is also based on good and long-term relationships with important players in the companies' business environment, including authorities, suppliers, and employee organizations.

Attractive employer

Storskogen's success requires that it is an attractive employer. For talented employees, the larger group of companies can offer more career and development opportunities.

Long-term supply of skills is another important part of Storskogen's responsibility as an owner and employer. A stable and long-term owner provides security for the employees and in the long run also for the communities where the companies operate. When companies approach a generational change of management, it is natural that it can cause concern among employees. Storskogen's vision is to contribute to safer conditions, among other things by acting as a new long-term owner. Increased investments, structural capital and recruitment of key people can lead to an initial burden on earnings but provide the conditions for sustainable growth and profitability in the longer term.

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