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Investment policy
3i has a portfolio of investments in over 1,800 businesses in
Europe, Asia Pacific and the United States. As an investor,
corporate governance is a priority and account is taken of
environmental, ethical and social issues when making investment
decisions. 3i believes it is important to invest in companies whose
owners and managers act responsibly on environmental, ethical and
social matters.
3i aims to invest in companies which:
- respect human rights;
- comply with current environmental, ethical and social
legislation;
- have proposals to address defined future legislation;
- seek to comply with their industry standards and best
practice.
3i recognises that the most significant risks to 3i’s short-term
and long-term value arising from environmental, ethical and social
matters arise from its investment business. If a company in which
3i has an investment acts irresponsibly on corporate responsibility
issues, this might affect the monetary value of that investment
and, as a shareholder in that company, raise reputational issues
for 3i. Although 3i does not have operational control over the
companies in which it invests, it does have the opportunity to
influence the behaviour of these businesses and encourages the
development and adoption of good corporate governance. This is
achieved through the training of investment staff and non-executive
directors who are appointed to the boards of investee companies and
the raising of awareness within investee companies of social,
environmental and ethical issues.
3i has clear procedures to reduce the risks of 3i investing in
businesses which operate in an environmentally, ethically or
socially unacceptable manner. When reviewing businesses for
potential investment, investment executives are required to
consider whether any corporate responsibility risks arise and, if
any risks are identified, to follow 3i’s corporate responsibility
investment procedures. Depending on the nature of the risk
identified and its seriousness, a condition precedent or post
completion undertaking requiring that the situation be remedied may
be required from the investee company or its management.
Alternatively, it may be decided not to proceed with the
investment.
Where, after an investment has been made, 3i becomes aware that
an investee company is not operating in an acceptable way, 3i will
seek to use its influence to encourage improvement. Where that is
not possible, 3i will seek to divest itself of the investment.
Training and development
Encouraging the continuous development of staff is important to 3i
and its business. During the year, a revised training and
development programme was launched for 3i staff. This programme
includes courses on communications and presentations, working
within a management matrix environment, coaching and mentoring, and
networking and management skills. In addition, investment staff are
required to complete an investment training programme on joining 3i
and all staff are encouraged to attend external courses on subjects
relevant to their roles within 3i. During the year, in addition to
these external courses, approximately 300 employees attended
training and development courses.
It is a legal and regulatory requirement that all executives
involved in making or managing investment transactions receive
anti-money laundering training and refresher training on a rolling
two year basis. All relevant executives have received anti-money
laundering training and, during the year, 3i delivered a refresher
training presentation to all relevant executives.
A programme of role-play-based workshops across the business and
regular articles in 3i’s staff magazine are being used to raise
awareness of corporate responsibility issues, to stimulate debate
and provide employee training. During the year, nine workshops,
covering 336 employees, were held in the UK. Workshops will be held
in continental Europe, Asia Pacific and the US in the coming year.
Following feedback from these workshops, a fact sheet, explaining
3i’s approach to corporate responsibility and providing further
information for staff, is being circulated.
Training for Directors on corporate responsibility issues is
achieved through a system of regular Board reporting and by Board
presentations on relevant corporate responsibility issues.
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