How are we doing?

Performance and measurement
To assist it in benchmarking 3i’s corporate responsibility performance, the Committee has had informal discussions with other companies and specialists in this area. The Committee has overseen the formulation and implementation of corporate responsibility investment procedures, implemented appropriate risk management procedures and set strategic targets and objectives for corporate responsibility.

3i’s performance is measured against two indices:

• the Dow Jones Sustainability World Index (“DJSI”), a global index which tracks the financial performance of leading companies in terms of corporate sustainability; and
  
  
• Business in the Community Corporate Responsibility (“BitC”), an index which aims to benchmark environmental, ethical and social performance and encourage sustainable development.

3i has again been selected as a constituent of the DJSI during the year and was placed top in its industry group on a global basis, an improvement on last year. The DJSI researchers commented that “3i is clearly positioned among the best in the financial services industry” (source: SAM Research Inc). 3i aims to continue to be included within this Index and to maintain its position in the next DJSI assessment.

3i participated in the second annual BitC Corporate Responsibility Index. 3i was included in the BitC’s “Top 100 Companies that Count”. 3i’s performance score increased from 46.33% in the 2002 Index to 85.45% in the 2003 Index. 3i aims to continue to be included within this Index and to maintain its performance.

Each of 3i’s business unit and department heads is required to confirm on an annual basis that their operating procedures, including investment procedures, are consistent with 3i’s standards and controls and that these procedures are operating in practice.

3i’s performance management appraisal process reviews the performance of individual members of staff against agreed objectives and the knowledge, skills and behaviours expected by 3i. This process includes 360 degree feedback for all employees.

All 3i’s offices are the subject of health and safety audits to ensure high standards are adopted on a consistent basis worldwide.

"3i is clearly positioned among the best in the financial services industry."

"It is a real achievement to be one of the Companies that Count."

Audit and verification
The Committee is responsible for monitoring the operation of 3i’s corporate responsibility policies and procedures. The identification and management of corporate responsibility risks is integral to the ongoing operational processes of 3i’s business units and functions. 3i’s internal audit function carries out periodic independent reviews of risks and related controls in this area, including compliance with 3i’s corporate responsibility investment procedures.

The Committee may also supplement internal review processes with external reviews where necessary. The Committee is not aware of any material breaches of 3i’s policies and procedures for managing risks from corporate responsibility issues.

The disclosures in this Corporate responsibility report are the subject of a process requiring every statement made in this report to be verified.