Sustainability

Responsible investment

With fewer than 240 employees globally, 3i has a relatively small direct impact on the environment and other sustainability issues. However, with assets under management of £23 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 our holding periods are not limited and we have a medium to long-term investment horizon. We have majority or significant minority stakes in our portfolio companies and are represented on their boards. This gives us the influence to drive long-term, sustainable growth in our portfolio.

  • Thematic origination

We invest in businesses that benefit from structural trends which can support long-term sustainable growth in our portfolio. Our approach is flexible and can be adapted to take into account market, regulatory, policy, societal or environmental developments.

For example, over the last few years we have backed businesses that benefit from and have invested in the transition to a low-carbon economy, the achievement of a more sustainable consumption model through a circular economy and improved health and wellbeing, all of which can deliver positive impacts over the long term.

  • Careful portfolio construction

We approach investment origination and portfolio construction with great care. We make a limited number of new investments each year, with a clear focus on sectors and geographies where we have built a strong track record, in-house expertise and comprehensive networks. We can screen out opportunities that have an unsustainable impact on the environment and societies in which they operate, inconsistent with generating long-term value.

  • Rigorous assessment and management

The rigorous assessment and management of ESG risks and opportunities is embedded in our investment, portfolio management and value creation processes. Our Responsible Investment policy, as interpreted and implemented by our Investment Committee, provides clear guidance to our investment professionals. We have also been signatories to the UN Principles of Responsible Investment since 2011.

Responsible Investment policy

Thematic approach to origination and portfolio construction

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