Sustainability

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. This includes an ESG Committee, which assists and advises the Chief Executive, directly and through the Investment and Group Risk Committees, on relevant environmental, social and governance risks and matters, including developing and proposing the Group’s approach to managing ESG. It also coordinates the Group’s various sustainability activities, including the management of ESG risks and opportunities across the portfolio.

We have several dedicated sustainability professionals, both at Group level, with a focus on the Group’s overall sustainability strategy, objectives and reporting, and embedded within each of our Private Equity and Infrastructure investment teams, with a focus on the assessment and management of sustainability-related risks and opportunities within existing and potential portfolio companies.

Board

Ownership and oversight of the Group's ESG and sustainability approach and policies

Principal Board Committees

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

Chief Executive

Day-to-day accountability for sustainability

Chief Executive Committees

Executive Committee

Assists the Chief Executive in managing the business

Sustainability responsibilities include:

  • Assisting the Chief Executive in setting the Group's strategy, including its sustainability aspects
  • Recruitment and retention

Investment Committee

Acquisition, management and disposal of investments

Sustainability responsibilities include:

  • 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)

Group Risk Committee

Oversees the Group's risk management framework

Sustainability responsibilities include:

  • 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

Group ESG Committee

Assists and advises the Chief Executive on relevant environmental, social and governance risks and matterse

Responsibilities include:

  • 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
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