Responsible investment
We believe that a responsible approach to investment aligns with our values and supports the delivery of attractive returns from our portfolio over the long term.
We have majority or significant minority holdings in our core portfolio companies and are represented on their boards. We exercise our influence to ensure that they assess their material environmental and social impacts and dependencies and, where relevant, support them in developing plans to mitigate ESG risks and invest in value creation opportunities that may arise.
Our investment approach is based on four pillars:
Long-term stewardship
Thanks to our permanent capital we have a medium- to longterm investment horizon. We have majority or significant minority stakes in our core portfolio companies and are represented on their boards. We therefore have the influence to drive long-term, sustainable growth in our portfolio.
Thematic origination
We adopt a thematic approach to investment origination. Our approach is flexible and can be adapted to take into account market developments and regulatory, policy, societal or environmental changes. For example, over the last few years we have backed businesses that invest in energy transition, develop products or services that can contribute to a more sustainable consumption model, or support the medical and pharmaceutical industries, all of which can benefit from longterm structural growth trends.
Careful portfolio construction
We approach investment origination and portfolio construction with great care, with a focus on resilience across the cycle. We make a limited number of new investments each year, sourced from sectors and geographies where we have built a strong track record, in-house expertise and comprehensive networks.
Assessment and management
We screen investment opportunities against our Responsible Investment policy and embed an assessment of ESG risks and opportunities across our investment, portfolio management and value creation processes. We have been signatories to the UN Principles for Responsible Investment since 2011.
Responsible investment policy
The following is a summary of 3i’s full Responsible Investment policy as last updated in May 2024.