Responsible investment

With approximately 250 employees globally and a small office footprint, 3i has a relatively small direct impact on the environment and other sustainability issues. However, with assets under management of nearly £30 billion, we can achieve progress on many sustainability issues through the actions we drive in our portfolio companies.

We believe that a responsible approach to investment is a material lever for value creation in our portfolio. Our approach is based on four pillars;

Long-term stewardship

Thanks to our permanent capital we have a medium to long-term investment horizon. We have majority or significant minority stakes in our core portfolio companies and are represented on their boards. We therefore have the influence to drive long-term, sustainable growth in our portfolio.

Thematic origination

We invest in businesses that benefit from structural growth trends. Our approach is flexible and can be adapted to take into account market developments and regulatory, policy, societal or environmental changes.

For example, over the last few years we have backed businesses that have invested in the energy transition, the achievement of a more sustainable consumption model through a circular economy, improved health and wellbeing and the digital transition, all of which can contribute to delivering positive change over the long term.

Careful portfolio construction

We approach investment origination and portfolio construction with great care, with a focus on resilience across the cycle. We make a limited number of new investments each year, sourced from sectors and geographies where we have built a strong track record, in-house expertise and comprehensive networks.

Assessment and management

We screen investment opportunities against our Responsible Investment policy and embed an assessment of ESG risks and opportunities across our investment, portfolio management and value creation processes. We have been signatories to the UN PRI since 2011. We do not manage thematic ESG funds and it is not our intention to do so. Nevertheless, we are committed to evolving and improving our approach to responsible investment.