Sustainability governance
The Board of Directors is responsible for the oversight of the Group’s sustainability strategy, approach and policies, including the Responsible Investment policy.
It delegates day-to-day accountability for sustainability to the executive management and, in particular, the Chief Executive. The Chief Executive has established a number of committees to support him in overseeing and monitoring policies and procedures and to address issues if they arise. Our governance struture is set out below:
Chief Executive
Day-to-day accountability for sustainability
Executive Committee
Assists the Chief Executive in managing the business
- Assisting the Chief Executive in setting the Group's strategy, including its sustainability aspects
- Recruitment and retention
Group ESG Committee
Assists and advises the Chief Executive on relevant environmental, social and governance risks and matters
- Reporting on relevant ESG matters to the Chief Executive and proposing strategies for managing the ESG factors which have potential to impact our business
- Oversight of 3i Group's approach to ESG and ensuring 3i Group's compliance with relevant legal and regulatory requirements, industry standards and guidelines applicable to ESG matters
- Monitoring stakeholder expectations, market developments, trends and best practice in relation to ESG matters as relevant to the Group and its portfolio
- Co-ordinating ESG-related activities and initiatives across the Group
- Reviewing and monitoring the Group's ESG performance
Group Risk Committee
Oversees the Group's risk management framework
- Oversight and review of the Responsible Investment Policy
- Oversight of relevant environmental legislation and regulation
- Oversight of ESG risks and performance for the Group and the portfolio
- Assessment of regulatory and compliance risks, including financial crime and bribery
- Assessment of operational risks, including cyber security and people risks
- Review of incident management, business continuity and disaster recovery plans
Investment Committee
Acquisition, management and disposal of investments
- Implementation of the Responsible Investment Policy
- Assessment and management of ESG risks and opportunities in the investment, divestment and portfolio management activities
- Due diligence of ESG risks and opportunities in the investment process
- Compliance with applicable ESG regulation in the portfolio (e.g. Modern Slavery Act, environmental regulations)
Principal Board Committees
Ownership and oversight of the Group's ESG and sustainability approach
Audit and Compliance Committee
- Financial and non-financial reporting (including reporting on ESG and sustainability matters), risk, internal controls and assurance
- Overseas ESG risks for 3i and its portfolio through regular reports from the Group Risk Committee
- Oversees the approach to tax policy and strategy
Remuneration Committee
- Director and senior management remuneration-related ESG performance meaures, and Group remuneration structure
- Oversees the implementation of hair remuneration for employees
Nominations Committee
- Size, balance, composition and diversity of the Board
- Board and senior executive succession
Valuations Committee
- Valuation policy
- Valuation of the investment portfolio
- Responsibilities include the consideration of ESG impacts on portfolio valuation
