As a corporate

As an employer

3i's staff are fundamental to the success of its business. Accordingly, one of 3i's core values is to respect its staff and their needs.

Employees are organised in small teams and an environment of co-operation is encouraged to ensure the highest standards of integrity and professionalism.

In accordance with 3i's core values, individual consultation with employees on matters affecting them, and fair and open communication, are a high priority. During the year, a confidential survey of all staff world-wide was undertaken by Ipsos MORI to ascertain the attitudes of staff towards 3i. 91% of staff participated in this survey. The survey revealed that 3i compared favourably with other leading companies, exceeding the "Ipsos MORI norm" (a database maintained by Ipsos MORI recording average scores achieved by companies against a range of frequently asked questions) in 15 of 21 categories. A high level of employee engagement was disclosed with an overall score of 84%. The survey also revealed high levels of satisfaction, with 90% of staff indicating that they had interesting work, 89% of staff referring to the good working atmosphere at 3i, and high levels of staff morale at 22 points above the Ipsos MORI Top Ten norm. The results of the survey were considered by the Board and senior management and subsequently shared and discussed with individual teams within the business and actions agreed as relevant and appropriate.

3i has comprehensive behaviour policies to help ensure that employees treat their colleagues and others with courtesy and respect.

3i also has a whistle blowing policy setting out procedures for staff to raise in confidence matters of concern, for an appropriate and independent investigation of such matters and, where necessary, for follow-up action.

Training and development

3i is committed to encouraging the continuous development of the skills of its staff with the objective of maximising the overall performance of the business. Emphasis is placed on work-based learning, with the provision of development opportunities supported by appropriate coaching and mentoring. This is supplemented by more formal training programmes, such as workshops to enhance the board management skills of 3i's investment staff. In addition, investment staff are required to complete an investment training programme on joining 3i, and professional services staff are supported in developing their functional specialisms through external courses, networks and forums. During the year, 185 employees attended internal 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 periodic refresher training. A programme of training is in place to discharge these obligations.

A programme of role-play-based workshops across the business and regular articles in 3i's staff magazine are used to raise awareness of corporate responsibility issues, to stimulate debate and provide employee training. During the year, a programme of 20 staff workshops, covering all locations world-wide where 3i operates was completed. To follow up on this programme of employee engagement and training, sector-based workshops and training courses have now been developed for investment staff. The objectives of these workshops are to ensure that staff remain fully informed of 3i's corporate responsibility policies, to identify and raise awareness to specific sector or geographical issues and to gain input to the formulation of policy. During the year, two such workshops were held for investment executives in 3i's Oil and Gas and Healthcare sector teams respectively and further workshops are planned.

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.

Health and safety

3i recognises that the promotion of health and safety at work is an essential function of staff and management at all levels. In an endeavour to achieve high standards, appropriate policies and procedures have been put in place. Details of these policies and procedures can be found on 3i's website at www.3igroup.com/shareholders/cr/procedures. A Health and Safety Committee has been established to oversee the application of 3i's health and safety policies and procedures and to consider health and safety risks across the business.

The purpose of 3i's health and safety policy is to enable all members of 3i's staff to go about their everyday business at 3i's offices in the expectation that they can do so safely and without risk to their health. High standards of health and safety are applied to staff and sub-contractors and 3i endeavours to ensure that the health, safety and welfare of its employees, visitors, customers, sub-contractors' staff and the general public are not compromised.

3i's objective is not to have any reportable accidents or incidents. During the year to 31 March 2006, one minor reportable accident occurred under UK Health and Safety regulations. No reportable accidents or incidents occurred under similar regulations outside the UK.

As a member of Tommy's Pregnancy Accreditation Programme, 3i complies with criteria for pregnancy management, geared towards creating a positive environment for parents-to-be in the workplace.

Procurement

3i has developed policies and procedures relating to the purchasing of goods and services for use by the business. These policies and procedures must be followed by all staff. As far as possible, 3i will work only with suppliers who support 3i's aim to source products responsibly. Suppliers that exploit child or "sweated labour", that disregard social legislation and basic health and safety provision, that "pirate" the intellectual property of others or that wilfully and avoidably damage the environment will be avoided. Details of 3i's procurement policies may be found on 3i's website at www.3igroup.com/shareholders/cr/procedures.

3i aims to have a collaborative relationship with its suppliers and, wherever possible, when problems arise with a supplier's performance or behaviour, will work with the supplier concerned to help them meet 3i's requirements.

Environment

As a financial services business employing approximately 740 employees world-wide, 3i's direct environmental impact is relatively low. However, 3i measures its own energy and resource usage where practicable and sets targets to achieve improvement. A benchmark against which 3i measures its performance is for CO₂ emissions associated with its office accommodation. During the year, steps were taken to improve the collection and accuracy of data used in support of this measure. As a result, office related CO₂ emissions generated in the year to 31 March 2005 have been reassessed at approximately 6,964 tonnes. Over the two years to 31 March 2007, 3i aims to reduce this total by 6%. In the year to 31 March 2006, CO₂ emissions attributable to office accommodation of approximately 6,763 tonnes were generated. Although this was only a small reduction, the year included only one month of 3i's occupation of new, more energy-efficient offices in London, expected to generate significant savings. 3i also aims to reduce the amount of waste generated per person per week and, where possible, to recycle paper and other office materials. This measure was also distorted by the move of 3i's head office, which generated a temporary increase in waste. Office items and equipment no longer required as a result of this move were, where possible and practical, either donated to charity via InKinddirect or recycled.

3i assesses the environmental standards of suppliers and, through its procurement policy and its purchasing choices, will favour products showing clear environmental advantages unless there are significant reasons for not so doing.

Charity and community

3i's charitable policy aims to support:

• causes based in the communities in which 3i has offices;
• charitable activities of staff. 3i matches donations made by UK staff under the Give As You Earn scheme ("GAYE") and the proceeds of staff fundraising efforts. In the year to 31 March 2006, approximately 26% of 3i's charitable donations were matching GAYE donations;
• charities relevant to its corporate activity. For example, 3i founded and supports businessdynamics, a charity which aims to inspire young people to become involved in, and understand business.

Charitable donations made in the UK in the year to 31 March 2006 amounted to £390,570, supporting a variety of different charities with donations up to £35,000.