Sustainability

Sustainability – a prerequisite for long-term value creation

At A. Ahlström, 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 fundamental values of Ambition and Responsibility, established by our founders Eva and Antti Ahlström seven generations ago, quide our actions. We create shared value by building profitable businesses as well as supporting actions that mitigate climate change, protect biodiversity, and increase circularity, and social sustainability. Our mission is to create a better world for future generations through sustainable value creation.

The Ahlström Sustainability Policy is defining the framework for our sustainability work. We have been participants of the UN Global Compact (UNGC) since 2018 and we report annually on the progress towards implementing the ten principles of the UNGC. A. Ahlström is an active participant in the Ahlström Collective Impact initiative, which brings together the Ahlström network companies, Ahlström foundations and UNICEF Finland. We are also members of the Finnish organisation for sustainable business practices (FIBS).

Driving sustainable progress

We continuously strive to improve the Environmental, Social and Governance (ESG) impact of our own operations and our holdings. As an owner, we contribute through the capital we provide, the engaged ownership role we undertake and furthermore, through the employment, innovations, products and services provided by our portfolio companies. The ESG risks and opportunities related to each investment case are assessed during the due diligence process.

Impact through active ownership

Our primary influence in the company we own, is carried out through the board work. A. Ahlström also has an active dialogue with the management of each company about the development of their ESG work, the targets and the action plans for the future. We believe in making an impact through developing the companies we own, by improving the ESG impact of their operations and also by making a positive impact through product innovations. Our ESG targets for each company are integrated in the value creation plans developed for each company.

Measuring the progress – ESG Management System Maturity

ESG Management System Maturity is a tool developed for us, which we use to assess and monitor how each of our portfolio companies are proceeding in their sustainable business journey. The companies provide a self-assessment which covers the pre-defined, material processes in each of the five levels of ESG Management System Maturity. This is reviewed in annual sustainability discussions between A. Ahlström management and the company management. At the same time, the company’s progress in sustainability work, action plans and target levels are also discussed.

Our target is that each portfolio company should reach at least level four out of five. To reach the level four, a company must, among others things, have sustainability integrated in its strategy; have defined material ESG topics and KPI’; have clear ESG targets with monitoring and reporting processes in place; and have people in the organisation engaged through individual target setting.

Learn more about our three ESG focus areas, actions, KPIs, and 2023 progress below.