Sustainability governance
The Board of Directors is responsible for the oversight of the Group’s sustainability strategy, approach and policies, including the Responsible Investment policy.
It delegates day-to-day accountability for sustainability to the executive management and, in particular, the Chief Executive. The Chief Executive has established a number of committees to support him in overseeing and monitoring policies and procedures and to address issues if they arise. Our governance structure is set out below:
Chief Executive
Day-to-day accountability for sustainability
Executive Committee
Assists the Chief Executive in managing the business
- Assisting the Chief Executive in setting the Group's strategy, including its sustainability aspects
- Recruitment and retention
Group Sustainability Committee
Assists and advises the Chief Executive on relevant environmental, social and governance risks and matters
- Reporting on relevant sustainability matters to the Chief Executive and proposing strategies for managing the sustainability factors which have potential to impact our business
- Oversight of 3i Group's approach to sustainability and ensuring 3i Group's compliance with relevant legal and regulatory requirements, industry standards and guidelines applicable to sustainability matters
- Monitoring stakeholder expectations, market developments, trends and best practice in relation to sustainability matters as relevant to the Group and its portfolio
- Co-ordinating sustainability-related activities and initiatives across the Group
- Reviewing and monitoring the Group's sustainability performance
Group Risk Committee
Oversees the Group's risk management framework
- Oversight and review of the Responsible Investment Policy
- Oversight of relevant environmental legislation and regulation
- Oversight of sustainability risks and performance for the Group and the portfolio
- Assessment of regulatory and compliance risks, including financial crime and bribery
- Assessment of operational risks, including cyber security and people risks
- Review of incident management, business continuity and disaster recovery plans
Investment Committee
Acquisition, management and disposal of investments
- Implementation of the Responsible Investment Policy
- Assessment and management of sustainability risks and opportunities in the investment, divestment and portfolio management activities
- Due diligence of sustainability risks and opportunities in the investment process
- Compliance with applicable sustainability regulation in the portfolio (e.g. Modern Slavery Act, environmental regulations)
Principal Board Committees
Ownership and oversight of the Group's sustainability approach
Audit and Compliance Committee
- Financial and non-financial reporting (including reporting on sustainability matters), risk, internal controls and assurance
- Overseas sustainability risks for 3i and its portfolio through regular reports from the Group Risk Committee
- Oversees the approach to tax policy and strategy
Remuneration Committee
- Director and senior management remuneration-related sustainability performance measures, and Group remuneration structure
- Oversees the implementation of hair remuneration for employees
Nominations Committee
- Size, balance, composition and diversity of the Board
- Board and senior executive succession
Valuations Committee
- Valuation policy
- Valuation of the investment portfolio
- Responsibilities include the consideration of sustainability impacts on portfolio valuation
