Sustainability

Mellby Gård's sustainability commitment is divided into three levels. The work that takes place in the parent company Mellby Gård AB, the sustainability work conducted in all companies in the Mellby Gård Group and finally the way in which new investments are valued. All the work is based on Mellby Gård’s ownership philosophy – the Mellby model – which focuses on long-term, responsible and active ownership. This is combined with a strong social commitment. Johan Andersson, CEO at Mellby Gård, explaines:

“Where Mellby Gård is concerned, sustainability in the broader perspective is about helping to tackle major societal challenges,” says Mellby Gård CEO Johan Andersson. “We’re seeing a major shift in the business world and what is expected of us as a group, where it’s no longer sufficient to be able to describe the ‘what’ of your business, but also the ‘how’ and the ‘why’. That’s why we’re secure in the Mellby model, which gives us a clear direction and purpose in what we do, so that we can help effect positive change for the environment and society.”

Today, the Mellby Gård Group comprises 15 companies in various industries. This naturally means that companies face different requirements and have different levels of maturity when it comes to their own sustainability efforts. Where this is concerned, Mellby Gård has always been supportive of those companies that want to be at the forefront, but also acted as a sounding board for those companies that have required extra support. There is now a clear change regarding the issue of sustainability, linked in particular to the forthcoming EU legislation, in which the parent company of a group is expected to have a more defined coordinating role in the sustainability efforts that take place in all its subsidiaries.

“So far, work on sustainability at Mellby Gård has largely been performed within each individual company, with our support,” says Johan Andersson. “Most companies manage their sustainability efforts perfectly well on their own, clearly integrating them in their business models. But there will be changes in requirements for our sustainability efforts for us as a group and for all our companies in the coming years, and we need to decide how to tackle that.”

A COMMON FRAMEWORK
In order to meet more exacting requirements and higher expectations, the Mellby Gård Group is currently working hard to establish a common approach to sustainability going forward.

“When we get to 2023, we’ll form a joint body with selected companies in the Group, enabling them to share knowledge with us as the owner company and with other companies in the Group, partly because we as the Group parent want and need to become more active in this work,” says Johan Andersson. “We strongly believe in continuing to take a decentralized approach to sustainability efforts, but at the same time, we in the parent company must be clearer about what we expect from our companies, and together we need to establish a common framework that will apply to everyone.”

The common framework for sustainability will include a set of common metrics (KPIs). Again, the hope is for those companies that are well advanced in their sustainability efforts to share knowledge and working methods for data collection with those that need a little extra support. Sustainability is also becoming an increasingly important factor when Mellby Gård makes a valuation of companies to potentially invest in. Given the Mellby model’s focus on the long-term, sustainability – and having a sustainability mindset in your business model – is about identifying companies that are relevant over time.

“Sustainability is certainly an important aspect when we look at new investments,” says Johan Andersson. “If we don’t get the right answers to our questions, we prefer to refrain from an investment or acquisition. On the other hand, we get even more excited about companies that have a strong, positive impact on society and the environment via their business. A sustainable business concept is quite simply more attractive to us, because it demonstrates the company’s ability to survive in the long term – and attract customers, skills and capital.”

WANTS TO GENERATE POSITIVE CHANGE IN SOCIETY
Mellby Gård’s sustainability efforts also include the company’s extensive social commitment, where they provide financial support to a number of individuals and organizations working on one of the issues close to Mellby Gård’s heart.

“I’m aware that there are differences of opinion on whether philanthropy should be considered part of sustainability, but for us, as a small operation with large assets, we see it as an opportunity and a duty to give back to society and help effect positive change,” says Johan Andersson. “We’re particularly passionate about issues related to children’s rights, young people’s educational opportunities, labor market and skills supply issues, entrepreneurship and sports and health. You can read more about this in several places in this year’s magazine.”

Each company in the Group is also encouraged to get involved in social issues that are important to them. The spring of 2022 marked the start of the Russian invasion of Ukraine, shaking the whole of society but also creating a huge desire to act in support of the war-torn areas and their people.

“I’m very impressed with all the activities in our group of companies related to helping the Ukrainian people,” says Johan Andersson. “We’ve provided everything from clothing and other necessities for those affected on the ground to training and education for refugees here in Sweden. We’re particularly proud of Feralco’s ‘Water for Ukraine’ industry initiative, which, together with the Ukrainian Ministry of the Environment, has managed to maintain deliveries of water treatment chemicals right up to the front line to secure the supply of clean water in wartorn areas.”

Going forward, Johan Anderson does not see any tendency for sustainability to become less important or for demands to be relaxed – on the contrary. As more and more people become increasingly informed and interested, they will continue to drive change. This concerns both how sustainable companies become in their own operations, but also the impact they have on society at large.

“As I see it, there’s really no alternative to acting sustainably; it is and will remain a necessity for any modern company,” says Johan Andersson. “The big question is how you choose to act. If you do the right things at the right time to future-proof your business, you’re well placed to remain relevant – as a company and as an investment partner!”