Sustainability report 2019 - 3i Group plc
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3i Group plc Sustainability report 2019
3i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 02
Contents
About this report
This report aims to provide the information that
is material and relevant for our stakeholders to
form a view on how 3i Group plc (“3i” or “the
Group”) is performing on environmental, social
and governance (“ESG”) matters. There have been
no significant changes from previous reporting
Introduction 03 periods in the material topics we are reporting on
and no comparative information has been restated.
A responsible employer 09 The report relates to the financial year ending
31 March 2019.
A responsible investor 23
We have chosen to report in accordance with the
A good corporate citizen 34 Global Reporting Initiative (“GRI”) standards.
Global Reporting Initiative 53 Global Reporting Initiative page 53
This document is electronic only and is not printed.
Contacts 58
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www.3i.com/sustainability
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3i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 03
Introduction
Our business at a glance 04
Message from the Chief Executive 05
Responsibilities and accountabilities 06
Our values 06
Our purpose is to generate attractive returns for our Governance framework 07
External benchmarking 08
shareholders and fund investors by investing in private
equity and infrastructure assets. As proprietary capital
investors we have a long-term approach. We create
value through thoughtful origination, disciplined
investment and active stewardship of our assets,
driving sustainable growth in our investee companies.
3i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 04
Our business at a glance
Founded in 1945, 3i today is a leading
international investor focused on mid-
Proprietary capital (£bn)
240 employees
market private equity and infrastructure £6.0bn from 21 different nationalities
in Europe and North America.
Private Equity
Our Private Equity and Infrastructure
£1.0bn 8 offices
businesses manage a mix of proprietary
and third-party funds. We generate
a capital return from our proprietary
7.5bn Infrastructure
Office
London (head office)
Number of employees
159
capital investments, as well as fee income Amsterdam 15
from the funds we manage on behalf
£0.5bn Frankfurt 16
of third parties. Our Corporate Assets Corporate Assets1 Luxembourg 6
are longer term holds, funded from our New York 19
own balance sheet. Paris 18
Mumbai2 5
3i listed on the London Stock Exchange
Assets under management (£bn) Singapore 2
2
in 1994 and has no controlling shareholders.
£8.3bn
Private Equity
£4.2bn
13.0bn Infrastructure
£0.5bn
Corporate Assets1
Data as at 31 March 2019.
1 The only asset reported in this segment is Scandlines, an operator of ferry services between Germany and Denmark.
Our business model is described 2 We no longer make new investments in Asia, and our Mumbai and Singapore offices are responsible for managing our legacy portfolio in that region.
in detail in our Annual Report At 31 March 2019, only seven of our employees were located outside of Europe and North America and only c.2% of our AUM was invested outside of those regions.
3i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 05
Message from the Chief Executive
Sustainability and governance are key Our sustainability strategy is defined by three key priorities
areas of focus for the Board of Directors,
1
including me, and also for our employees. Recruit and Our people are our main asset and recruiting, retaining
3i has built a strong reputation and track develop a diverse and developing our talent is one of our most important
record as an investor by managing its pool of talent priorities. We promote an open communication culture
business and portfolio sustainably and and provide an inclusive and supportive working
by carrying out its activities according to environment with opportunities for training and career
high standards of conduct and behaviour. development. We value diversity and our employees are
This has allowed us to earn the trust of our recruited, promoted and rewarded on the basis of merit,
shareholders, investors in our funds and ability and performance. We are an equal opportunities
We invest with the objective of investee companies and to recruit and retain employer and prohibit all forms of unlawful or unfair
employees who share our values discrimination.
generating attractive returns through and ambitions for the future.
the cycle for our shareholders and
2
Invest We believe that a responsible approach to investment will
Maintaining a strong reputation requires
investors in our funds. We aim to us to adopt a transparent approach to
responsibly add value to our portfolio. Our Responsible Investment
achieve this objective by behaving Policy is embedded within our investment and portfolio
corporate reporting, including on our management processes. It informs our investment
responsibly as an employer, as an progress on driving the sustainability decisions and our behaviours as a responsible steward of
investor and as an international agenda through our operations our assets. We are rigorous in assessing and managing
and portfolio. We are committed to
corporate citizen. communicating both financial and non-
sustainability-related risks in our portfolio. Equally,
we are keen to invest in opportunities arising from
financial performance in a clear, open and the development of solutions to global sustainability
comprehensive manner and to maintaining challenges. We make a limited number of investments
an open dialogue with stakeholders. each year, allowing us to be very selective in our approach
Accordingly, we welcomed the publication to new investment.
of the Recommendations of the Task Force
3
on Climate-Related Financial Disclosures Act as a good We strive to embed responsible business practices
(“TCFD”) in 2017. Our TCFD disclosures corporate citizen throughout our organisation. We do this by having robust
are available in our 2019 Annual report. policies and processes in place and by promoting the
right culture among our staff. We expect our employees
Simon Borrows to act with integrity, to be accountable for their behaviour,
Chief Executive and to approach their roles with ambition, rigour and
May 2019 energy. All employees are evaluated annually against our
values as part of our formal appraisal process.
A responsible employer page 09
A responsible investor page 23
Download our Annual report A good corporate citizen page 34
3i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 06
Responsibilities and accountabilities
The Board of Directors as a whole Our values
is responsible for sustainability. It has
adopted and promotes corporate values
and Group standards which set out the
behaviour expected of all employees
in their dealings with shareholders, fund
investors, existing and potential portfolio
companies, colleagues, suppliers and
others who engage with 3i.
The Executive Directors and business and
functional leaders (together, the “Executive
Committee”) are responsible for ensuring
compliance with 3i’s corporate values and
standards. Our values and corporate culture
promote accountability and, together with
our compliance, behaviour and environmental,
ethical and social policies and procedures,
they are designed to ensure consistent
standards of conduct.
All employees are required to be aware
of, and abide by, 3i’s policies and procedures.
These are available to all staff through the
intranet portal. Employees are encouraged
to make suggestions to improve them.
Governance framework page 07
3i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 07
Governance framework
The Board of Directors and its
Committees review our approach to Board of Directors Chief Executive
sustainability, corporate responsibility Ownership and oversight of sustainability approach and policies Day-to-day accountability for sustainability
and related policies and address
specific issues if they arise. Principal Board Committees Chief Executive committees
Day-to-day accountability for sustainability Audit and Compliance • Financial reporting, risk and internal Executive Committee Sustainability responsibilities include:
rests with executive management and, in Committee controls Meets monthly • Assisting the Chief Executive in setting the Group’s
particular, the Chief Executive. The Chief Met six times in the year • Oversees the assessment and Assists the Chief strategy, including its sustainability aspects
Executive has also established a number management of ESG issues and Executive in managing • Human rights and employment legislation
of committees to support him in overseeing risks, including those related to the business
• Employee incentives and remuneration
and monitoring policies and procedures environmental legislation and
and to address issues if they arise. regulation, climate change,
Investment Sustainability responsibilities include:
governance and compliance and
Committee • Implementation of the Responsible Investment
Our governance framework is outlined reputation, delegating day-to-day
Meets frequently
responsibility to the Chief Executive Policy
opposite and more information is provided as required
Oversees the approach to tax policy • Assessment and management of ESG risks
in our Annual report. •
Acquisition,
and strategy and opportunities in the portfolio
management
• Due diligence of ESG risks and opportunities
Remuneration Committee • Director and senior management and disposal
in the investment process
Met five times in the year remuneration and Group of investments
• Compliance with applicable ESG regulation
remuneration structure
in the portfolio (eg Modern Slavery Act,
• Oversees the implementation of fair environmental regulations)
remuneration for employees
Risk Committee Sustainability responsibilities include:
Nominations Committee • Diversity and composition Meets four times • Oversight of the Responsible Investment Policy
Met four times in the year of the Board per year
Oversight of relevant environmental legislation
•
Valuations Committee • Valuation policy Oversees the Group’s and regulation
risk management
Met four times in the year • Valuation of the investment portfolio • Assessment of ESG risks for the Group and
framework
the portfolio
• Responsibilities includes the
consideration of the valuation • Assessment of regulatory and compliance risks,
impact of sustainability-related including financial crime and bribery
matters • Assessment of operational risks, including
cyber security and people risks
• Review of incident management, business
continuity and disaster recovery plans
Download our Annual report
3i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 08
External benchmarking
We believe that it is important
to evidence our commitment to Sustainability indices CDP
We have been a member of the Dow Jones Sustainability CDP (formerly Carbon Disclosure Project) is an international,
operating sustainably and to show Europe Index and of the FTSE4Good Index Series since 2002 not-for-profit organisation providing a framework which enables
how we are performing. Accordingly, and 2011 respectively. In addition, 3i became a member of businesses to disclose their greenhouse gas emissions and
we provide a wealth of relevant the Ethibel Sustainability Index (ESI) Excellence Europe in other metrics voluntarily. 3i has been making annual
information to shareholders and September 2016 and was reconfirmed as a constituent of that submissions to CDP since 2006.
index in March 2019. 3i’s score in the 2018 CDP assessment was B.
other interested stakeholders.
www.sustainability-indices.com
www.ftse.com/products/indices/FTSE4Good www.cdp.net
www.forumethibel.org
Equileap UN Principles of Responsible Investment
3i ranked 59th among the Top 200 companies, and 7th among Since 2011, we have been signatories to the UN Principles
UK companies in Equileap’s 2018 Gender Equality Global for Responsible Investment.
Report and Ranking. Equileap is a social venture that aims
to accelerate progress towards gender equality in the
workplace as a vital lever in reducing poverty and inequality.
www.equileap.org www.unpri.org
3i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 09
A responsible
Human rights 10
Equal opportunities and diversity 11
employer
Learning and development 15
Recruitment and selection 16
Working at 3i 18
Health and safety 22
The skills, capabilities and expertise of our employees are vital to our
success. Recruiting, retaining and developing our talent are therefore
among our key priorities. We provide training and opportunities for career
advancement, reward our employees fairly and encourage direct feedback
to senior management.
With fewer than 250 employees (and fewer than 160 in the UK, where our
head office is based), we benefit from a flat organisational structure, which
supports an open communication culture. We are a meritocracy and our
employees are recruited, promoted and rewarded based on merit.
We recognise the importance of nurturing the wellbeing and satisfaction
of our employees by providing a supportive working environment and
a healthy work/life balance.
3i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 10
Human rights
Whilst 3i does not have, nor need, Due to the small number and diverse Modern Slavery Act
functions of our employees, as well as the 3i has a suite of human resources
a specific human rights policy, We published our statement on Modern policies and procedures covering areas
nature of our business, our employees Slavery for the financial year ending
our policies are nevertheless are not, in practice, unionised and do not including recruitment, vetting and
31 March 2018 on our website in September performance management, family-
consistent with internationally- engage in collective bargaining. 2018, and will update this statement for the friendly policies, equal opportunities
recognised human rights principles We do not procure services from nor year to 31 March 2019 in September 2019. and diversity, medical insurance and
such as the UN Global Compact. invest in businesses which make use of 3i is committed to ensuring that: health checks, health and safety and
We comply fully with applicable slavery, human trafficking, forced labour, • there is no slavery or human trafficking in flexible working, and appropriate
compulsory labour or harmful child labour. processes to monitor their application.
human rights legislation in the any part of its business or supply chains;
We aim to invest only in businesses which and Summaries of a number of these
countries in which we operate, policies can be found on our website.
are committed to: • the companies in which it invests are also
for example covering areas such
respecting the human rights of their committed to ensuring that there is no www.3i.com/sustainability/
as freedom of association and •
slavery or human trafficking in any part sustainability-policies
workers;
the right to collective bargaining, of their businesses or supply chains.
• maintaining safe and healthy working
equal remuneration and protection conditions;
against discrimination. • treating their employees fairly;
• upholding the right to freedom of
association and collective bargaining; and
• respecting the health, safety and
wellbeing of those adversely affected by
their business activities.
We try to ensure that the businesses we
invest in comply (among other things) with
all applicable employee-related laws and,
where appropriate, that they work towards
meeting relevant international standards
(such as the ILO Fundamental Conventions)
where these are more stringent.
Our Modern Slavery statement
is available on our website
Modern Slavery risk in 3i’s portfolio page 29
Human rights and forced labour in
3i’s supply chain page 453i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 11
Equal opportunities and diversity
3i is an equal opportunities 3i’s Equal Opportunities and Diversity Policy • we treat all those with whom we come into
establishes that all 3i employees (temporary contact with respect; Unconscious bias training
employer and prohibits unlawful
and permanent), contract workers and job • we meet, as a minimum, our statutory To reinforce our commitment to equal
and unfair discrimination. applicants are treated fairly and are offered obligations regarding employment opportunities, during the year we
We believe that a diverse and equal opportunity in selection, training, legislation; rolled out a training programme with
varied workforce is a great benefit career development, promotion and selected staff members from across
• we communicate the Equal Opportunities
remuneration. Specifically, we aim to ensure the business to tackle unconscious
to the organisation. Although we that:
and Diversity Policy and responsibilities for
achieving fairness and equality; and bias. The programme required line
do not set specific diversity targets, managers to attend a bespoke
• we have access to the widest labour • senior managers understand their
we seek to create, through our market and secure the best employees for unconscious bias workshop, focused
responsibility for enforcing this Policy and
culture and policies, a work our needs; we all share responsibility for upholding it.
on raising awareness of the attitudes
and behaviours associated with a range
environment that helps to bring • people are selected, promoted and During the year, we recorded no incidents of important line manager activities,
out the best in our employees. treated equally, enabling us to maximise of discrimination. such as performance management,
potential to the benefit of individuals team leadership and, where relevant,
and 3i; recruitment activity. The workshop
• we have employment procedures and reflected the reality of the challenges
practices which do not discriminate on that 3i managers experience on a
grounds of age, marital status, gender, daily basis. The Human Resources
gender identity, gender reassignment, team continues to challenge all teams
sexual orientation, race, colour, nationality, on their unconscious biases within
ethnic or national origin, religion or these processes.
religious belief, disability, sensitive medical
conditions, pregnancy or maternity, social
background, political opinion, trade union
membership, or any other legally
protected category;
A summary of our Equal Opportunities
and Diversity Policy is available on our website3i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 12
Equal opportunities and diversity
continued
Gender diversity At 31 March 2019, 3i’s total of 240 employees was broken down as follows.
Equileap Top 200 Ranking 2018
Achieving better gender diversity
3i employees 3i Group plc Directors1 In 2018, 3i was ranked among the
is important to 3i and we believe we
are making reasonable progress in Top 200 public companies making
that respect, within the constraints of progress towards gender equality
a small organisation with modest staff in Equileap’s 2018 Gender Equality
turnover. Of the 26 new hires we made Global Report and Ranking. This report,
during the year, 58% were female and published in October 2018, assessed
the progress towards gender equality
240 9
42% were male.
of all public companies with a market
capitalisation of above US$2 billion
in 23 developed countries (a universe
of 3,206 companies), based on 19
criteria. 3i ranked 59th among the Top
200 companies, and 7th among UK
companies. Equileap is a social venture
96 Female 3 Female that aims to accelerate progress towards
96MaleFemale
144 6 3Male
Female gender equality in the workplace as
a vital lever in reducing poverty and
144 Male 6 Male inequality.
Senior managers 2
www.equileap.org
38
9 Female
299 Male
Female
29 Male
1 Includes non-executive Directors who are not 3i employees.
2 “Senior managers” excludes Simon Borrows and Julia Wilson, our Chief Executive and Group Finance
Director, who are included as Directors of 3i Group plc, and includes 21 people who were directors of
undertakings included in the consolidation, of whom 19 were male and two were female.3i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 13
Equal opportunities and diversity
continued
Achieving better gender Research and advocacy A particular feature of the events
diversity in the private equity During 2018, Level 20 published two pieces programme is the series of monthly
breakfasts organised by the Future Leaders
industry: Level 20 of research to provide data to support its
Committee, a group of the younger
work.
Level 20 is a not-for-profit organisation, members, on a range of educational topics
which aims to encourage more women to The first, undertaken with the British Venture to support career development.
join and to succeed in the private equity Capital Association, was a report on the
industry with the goal of having women numbers of women working in private Early career planning
in 20% of senior positions. Level 20 is equity. This revealed that, whilst the overall Level 20 has also continued its work to
focused on achieving its goal through the percentage of women working in private promote careers to young women at various
organisation of a range of events, running equity in the UK was 29%, only 14% were points in their career planning. A day to
a mentoring programme and promoting in investment roles and only 6% in senior introduce private equity to girls in their
careers in private equity to young women investment roles. This exercise will be last year of school was held again during
through outreach activities. repeated in a couple of years to monitor the year and various outreach activities to
progress. universities and business schools were also
It has established committees in
a number of countries across Europe undertaken.
The second was a report on career paths
including Germany, the Netherlands, in private equity undertaken with the Mentoring
Spain and Poland, with others being Cambridge Judge Business School.
organised in the Nordic countries and Level 20’s mentoring programme has now
France. It has 2,400 individual members During the last year, Level 20 has been running in the UK for four years and is
from 37 countries. continued to engage with its sponsor a key initiative in relation to supporting the
firms by producing a toolkit of best practice retention of women in the industry.
Jennifer Dunstan, Partner, Head of Fund guidance across a range of topics that
Investor Relations at 3i, co-founded Level A total of 179 women have been or
impact gender diversity. It is also working
20 with 11 other senior women working are currently in a Level 20 mentoring
with these firms to highlight the desirability
in the private equity industry. She programme which has involved 124 private
of building an inclusive culture to allow
handed over the chairmanship of Level equity firms providing either mentors or
diversity to flourish.
20 to George Anson, a Senior Advisor mentees. 3i has contributed both mentors
at HarbourVest Partners, in November Member events and mentees to the programme.
2018. Jennifer had been the Chair since Over 25 member events were organised The success of those in the original pilot
November 2016, during which time the during 2018, ranging from small breakfast programme is particularly encouraging,
scope and scale of Level 20’s activities events for targeted groups of women with 22 of the 23 mentees still working in
significantly increased. She remains on to larger networking events. Highlights the industry, of whom 17 have now been
the board as the past Chair. included a private view of the EY promoted. The model for the mentoring
“Impressionists in London” exhibition at programme is being adopted by the
Tate Britain and a summer networking event European committees, with a German
for younger members in support of the programme already up and running and
charity “Smartworks” raising both money a programme in France being organised.
and donations of interview clothing.3i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 14
Equal opportunities and diversity
continued
Ethnic diversity Social diversity
The McGregor-Smith review on “Race in We are committed to promoting social
the Workplace”, published on 28 February diversity in the workforce. In 2018, we
2017, highlighted the under-employment began a partnership with Career Ready,
and under-promotion of people of Black a not-for-profit organisation based in the
or Minority Ethnic (“BME”) backgrounds in UK, that connects employers with schools
UK businesses and made the case for more and colleges to provide young people,
inclusive organisations. aged 14 to 18 with mentors, internships,
masterclasses and employer-led activities
The review noted that, while one in eight of
that prepare them for the world of work.
the UK working age population in 2015 was
from a BME background, BME individuals 3i takes part in the Career Ready Plus
made up only 10% of the workforce and mentoring programme which supports
held only 6% of top management positions. young people who lack the opportunities,
network and confidence to reach their
The review contained a number of wide-
potential.
ranging recommendations, including one
for listed companies and all businesses and In the current 2018/2019 academic year,
public bodies with more than 50 UK-based 11 3i employees are mentoring pupils
employees to publish a breakdown of their through this programme.
UK-based employees by race and pay
band, and to publish aspirational targets
and report against these annually. These
recommendations are not mandatory.
As at 31 March 2019, more than one in eight
of 3i’s total UK employees were people
with a BME background. In addition, the
proportion of our employees with a BME
background in mid to higher salary brackets
also exceeded the one in eight proportion.
Career Ready page 473i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 15
Learning and development
Advancing our business goals depends During the year to 31 March 2019, we provided
formal internal training on areas and skills including:
on our ability to attract, retain and
motivate smart people. We are therefore • financial modelling;
committed to providing our employees • negotiation skills;
with the opportunities, experience • presentation and communication skills;
and training to achieve their potential • business writing;
and grow their knowledge, skills and • board success;
capabilities. • executive coaching; and
• unconscious bias.
We encourage employees to take responsibility
for their own development, working with their line We also organised periodic induction days to
managers to devise personal development plans welcome new joiners, with presentations from the
to support the achievement of their individual Chief Executive and other senior executives on
aspirations, consistent with 3i’s objectives. different areas of the business.
Given the specialised nature of many of the roles Key to personal development for all employees is a
in 3i, an emphasis is placed on work-based learning, formal annual appraisal process, where performance
with the provision of development opportunities is measured against agreed objectives and against
supported by appropriate training and mentoring. 3i’s values to inform decisions on remuneration,
This is supplemented by formal courses conducted career development and future progression.
both internally and externally and usually with a 360-degree feedback is gathered on employees
multinational group drawn from across the countries as part of this process. All employees receive formal
in which 3i operates. performance assessment and objective setting
reviews with their managers annually and may
receive informal reviews throughout the course
of the year.3i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 16
Recruitment and selection
Our Global Recruitment and
Selection Policy sets out a fair,
open, consistent and effective
Graduate scheme
We launched our graduate recruitment
scheme in 2015. The scheme is designed
16
graduate analysts joined
to develop our next generation of trusted us between 2015 and 2018
process to attract and select investment professionals. We are a small
high calibre candidates who will organisation; however, we believe this
maximise contribution to the
business.
programme is important in fostering a
distinctive 3i culture. Our first five graduate
analysts joined us in 2015, and we have since
4
graduate analysts to join
We recruit a small number of people in any been joined by five in September 2016 and us in 2019, of whom two
year. The number of new recruits varies from three in September 2017 and September are women
year to year and our employee turnover rate 2018. A further four are due to join us in
is low. As such, it is not practically possible September 2019. We are committed to
for us to implement meaningful initiatives
such as recruitment targets per age group,
gender and ethnicity.
recruiting from a diverse pool of candidates.
Of the four graduates joining us in 2019, two
are women.
8
nationalities
The top performers on the programme are
16
offered the opportunity to be fast-tracked
directly into our investment business. The
programme involves rotations across our
Private Equity and Infrastructure businesses, universities
as well as the opportunity to work with
senior professionals in our Strategy,
Investment Support and Investor Relations
teams.
Our graduates benefit from best-in-class
technical training courses in corporate
finance, valuation, financial modelling
and accounting, coupled with practical
business experience gained from working
alongside our investment professionals
and senior management teams. As a result,
they acquire an excellent grounding in the
investment world, as well as in strategy
and finance, enjoying a great deal of
responsibility at an early stage.
A summary of our Global Recruitment and
Selection Policy is available on our website3i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 17
Recruitment and selection
continued
Meet our 2018 graduate
analyst cohort
Frances Lee-Barber Fabien Paradis Arpita Prasad
“It was during my fourth and final year “I joined 3i in 2018 after completing a “Keen to start a career in the private equity
studying at Cambridge for a Masters in Masters degree in Corporate Finance industry, I was attracted to the unique and
Economics that I learnt about Private Equity and five internships in the finance industry, exclusive graduate opportunity 3i had
and 3i. including three in private equity. I was to offer, and jumped at the opportunity
attracted to a career in the investment to apply. 3i’s brand, heritage and
Previously, I had spent a summer interning
industry because I want to gain an in-depth international presence speaks for itself,
in the investment banking division at Credit
understanding of potential investments and the possibility of learning from such
Suisse. I enjoyed various aspects of this job;
and portfolio companies, obtain exposure experienced investment professionals at
however, I quickly realised from the deals
to their operations and contribute to their such an early stage was very appealing.
I worked on that I wanted to learn more
growth over the long term.
about their fundamental business and what The final interviews were a great occasion to
made them good (or bad!) businesses. I decided to start my career at 3i for three meet various employees, and I immediately
Following from this experience, I began reasons: the 3i brand and reputation, the felt at ease with 3i’s warm and welcoming
to pursue a career in investing. collegiate culture, and the tailored rotational culture. Joining 3i in September 2018, my
programme across asset classes. time here has been both enjoyable and
I have now been at 3i for eight months
rewarding. The rotational aspect of the
and think it is a great company to join as My programme started in the Strategy
programme has ensured a steep learning
a graduate. The people are welcoming team in London where I was able to work
curve and I am constantly encouraged to
and supportive, which makes 3i an excellent directly with 3i’s senior management on
ask questions, provide input and trusted to
environment to develop my skills and learn key strategic projects for the CEO and the
take ownership of key work-streams. I have
from others what makes a good investor. Board. So far I have been challenged and
now commenced my third rotation with
I am looking forward to starting my first exposed right off the bat to critical activities.
the Strategy team and look forward to yet
deal-team rotation in Infrastructure. In I am sure this will continue, enabling me
another interesting and challenging learning
particular, I am excited to learn from being to become a trusted and well-rounded
experience.”
part of a dynamic and very talented team.” investor.”3i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 18
Working at 3i
We recognise the importance Maternity and paternity leave
Maternity and adoption leave Paternity leave
of nurturing the wellbeing and In line with its objective of promoting
satisfaction of our employees equality and diversity, 3i’s policy is to Time off • 52 weeks of maternity or Eligibility • Biological father of a child,
support employees before and after the and leave adoption leave, regardless or mother’s husband or
by providing a supportive working birth or adoption of a child. Maternity, of length of service partner (including same sex),
environment and a healthy adoption and paternity leave are available Maternity • 100% of monthly basic salary
or spouse or partner
(including same sex)
work/life balance. to all eligible full and part-time employees pay for the first 18 weeks of the of the adopter
and meet at least the statutory minimum maternity or adoption leave
requirements. The summary opposite refers Length Up to two consecutive weeks’
Formal benefits to our UK policies (as 66% of our employees,
• Statutory maternity or
of leave
•
leave
adoption pay between week
All employees from across our office and 73% of our female employees are based 18 and week 39 of the • Does not have to be taken
locations enjoy a broad range of formal in our London office), however employees maternity or adoption leave straight after birth or
benefits aligned with local custom and based outside of the UK enjoy similar adoption, but must be
practice and often enhanced relative to benefits, aligned with local legislation. Other • Full entitlement to other completed within 56 days
the statutory minimum. benefits benefits, including holiday of birth or adoption
Shared parental leave entitlement, pension, death
In the UK, where approximately two-thirds and disability benefits and Paternity • No changes to normal salary
of our employees are based, the benefits 3i has developed a clear and accessible
private medical insurance pay
we offer include: Shared Parental Leave (“SPL”) Policy in the
UK for eligible mothers, fathers, partners • Shared parental leave for a
Other • No changes to other benefits
period of 50 weeks (after the
• family-friendly benefits (including (including same sex) and adopters to benefits
first two weeks from birth or
maternity and paternity leave, adoption choose how to share their time off work after adoption)
leave, shared parental leave, parental their child is born or placed for adoption.
leave, bereavement and compassionate SPL at 3i is remunerated at 100% of salary Return to • Right to return to the same job
leave); for the first six weeks; thereafter, statutory work • Company considers requests
• private medical insurance and health shared parental pay will apply up to week for flexible working
checks; 37 of the SPL. All other benefits remain in
• life insurance; place for the duration of the SPL. Employees
based outside the UK enjoy similar benefits,
• long-term sickness insurance;
aligned with local custom and legislation.
• pension contributions;
• flexible working, including remote Parental leave
working, flexible hours and job sharing; Most of our employees are entitled to
and parental leave in line with local legislation.
• share ownership.
All of the benefits above are available
to all full-time, part-time and fixed-term
employees, with the exception of long-term
sickness insurance, which is not available to
fixed-term employees who instead receive
a cash equivalent.3i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 19
Working at 3i
continued
Case study: 3i’s Shared Parental Leave Policy will
shared parental leave give me the flexibility to spend more time
SPL provides additional flexibility to with my family when our third child arrives
families to choose how to share time off this summer.
work after their child is born or placed
for adoption. As two working parents in senior roles,
When devising our policy on SPL, we we approach parenting as shared
felt that it was important to provide responsibility and work hard to manage
additional support to fathers or other
non-primary caregivers. We did that by
the right balance between “work” and
providing a clear policy outlining what “life” for our family – something that we
the SPL legislation means for fathers and achieve most of the time. Taking additional
other non-primary caregivers, but also by time out to support my wife and provide
enhancing the policy by paying up to six
weeks of SPL. extra attention to our two other young
children during the first few weeks of
An important, but more indirect
consequence of this, is that mothers or maternity leave felt like a very natural
other primary caregivers working outside decision for us.
of 3i also benefit from the additional
support that our policy offers them, I feel proud to work for a company that
whether this is in the form of additional invests in its people in such an important
help at home, or returning to work early, area and acknowledges that both parents
or for additional flexibility on how to
distribute their maternity leave.
have an active role to play in a family.
Having the support of my manager
and the team at 3i meant that I was
able to make this commitment without
feeling that I was missing out, or letting
anyone down.
Chris Rowland
Director of Strategy, Infrastructure3i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 20
Working at 3i
continued
Wellbeing at work Mental health and employee Grievance procedure Compulsory redundancies
We recognise the importance of nurturing assistance All of 3i’s offices comply with local 3i has not had a programme of compulsory
the wellbeing and satisfaction of our We place increasing importance on legislation governing grievance procedures. redundancies affecting a material number
employees by providing a supportive employees’ mental wellbeing. One of the of employees since 2012. Since then, we
The UK office, where approximately two-
working environment and a healthy work/ members of the HR team is a mental health have had some redundancies associated
thirds of 3i’s employees are based, has a
life balance. first aider, trained to identify the signs and with the closure of our offices in Spain and
formal Grievance Policy, which applies to all
symptoms of mental ill health and provide Sweden, and other occasional redundancies
Flexible working full and part-time employees, which outlines
help on a first aid basis. due to local reorganisation.
Where possible and relevant, employees the steps that employees can take to raise
across our international network are For example, all UK-based employees complaints or concerns and have these In no year since 2012 have redundancies
provided with the tools to work remotely (approximately two-thirds of the workforce) addressed by the Company. affected more than 5% of our employees.
and, at the discretion of their managers, have access to an Employee Assistance The UK Grievance Policy outlines the 3i’s London-based employees are offered
can work remotely and flexibly to manage Programme that offers free, confidential sequence of informal and formal steps in the comprehensive outplacement services with
personal or family commitments. Flexible telephone counselling on a range of assessment and resolution of the grievance. an external service provider to employees at
working options include remote working, personal and work‑related issues and risk of redundancy. This involves one-to-one
flexible hours and job sharing. problems, as well as face-to-face counselling consulting with a dedicated career coach,
services. The service also provides legal and the opportunity to be part of a job search
Physical health financial advice and other information and work team, access to a range of learning
3i promotes the physical wellbeing of its services and is run by Health Assured, an events, to an online career portal and to an
employees. For example, in the UK we independent external service provider. office space with IT facilities and support.
provide our employees with annual medical Employees who are members of the UK The support is provided for a period
insurance. All UK employees also qualify for private medical insurance, for which 3i ranging between two and six months. Some
annual health checks. covers premiums, have access to up to ten employees outside of London are offered
In addition to this, we provide the services sessions of psychological support without a similar service, based on local custom
of a personal fitness and nutrition adviser a requirement for General Practitioner and practice.
for our London-based employees, bookable referral.
free of charge for one-on-one fitness,
nutrition and broader wellness advice
sessions. He also hosts twice-weekly
fitness and pilates classes that are free
to employees.3i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 21
Working at 3i
continued
Remuneration Similarly, investment executives in the Employee engagement We promote and facilitate the ownership
3i’s employment policies are designed to Infrastructure business line may participate Honest communication with our staff of 3i shares among employees through
provide a competitive reward package in asset-linked and/or fee-linked incentive is important to us, and we therefore variable compensation and share
which will attract and retain high quality arrangements. encourage a culture of open communication investment plans. We pride ourselves on the
staff, whilst ensuring that the relevant costs between our employees and senior engagement and the sense of ownership
Employees participate in local state or
remain at an appropriate level. management. we have fostered over the years, which are
company pension schemes as appropriate
reflected in low employee turnover rates.
3i’s Remuneration Policy is influenced by 3i’s to local market practice. We benefit from being a small organisation,
financial and other performance conditions
and other market practices in the countries
in which it operates. All employees receive
Living wage
3i is an accredited London Living Wage
operating in a relatively flat structure
with few hierarchies. The members of
our Executive Committee have an open-
87%
participation in UK SIP1
a base salary and are also eligible to be Employer. This means that every member of door policy and know most employees by
considered for a performance-related staff based in London, including contracted name. We also encourage feedback from
annual variable incentive award. For those
members of staff receiving higher levels
of annual variable incentive awards, a
maintenance and reception teams, earns at
least a “living wage” which is an hourly rate
higher than the UK minimum wage and is
employees to senior management through
more formal forums, including regular
team meetings and off-sites to discuss
8%
unplanned employee turnover rate
proportion of such awards is delivered in set independently, updated annually and our strategy, as well as through the annual
3i shares, vesting over a number of years. based on the cost of living in London. appraisal process. Managers throughout
The Remuneration Policy is approved by 3i have a continuing responsibility to keep
Outside of London, our overseas
shareholders at least every three years their teams informed of developments and
offices tend to employ only investment
and is reviewed regularly by the Board’s to communicate financial results and other
and professional services staff, as well
Remuneration Committee. matters of interest.
as support staff, who are remunerated
Where appropriate, employees are above applicable minimum or living The Board of Directors typically holds one
eligible to participate in 3i share schemes wage requirements. of its meetings every year in one of our
to encourage their involvement in the offices outside London. This provides an
performance of the business. Investment opportunity for non-executive Directors
executives in the Private Equity business to meet the local teams, often in a more
line may also participate in carried interest informal setting. Non-executive Directors
schemes, which allow executives to are also invited to attend our semi-annual
share in future profits on investments. portfolio company reviews. These important
meetings provide the non-executive
For more information on remuneration:
Annual report and accounts 2019 Directors with an insight into how our
investment business operates and into
our culture. Employees also enjoy this
opportunity to interact with the Board.
1 Proportion of UK-based employees who subscribe to a Share Incentive Plan available to UK employees only.3i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 22
Health and safety
Our employees are engaged in Our health and safety priorities Responsibilities and outcomes We have pledged to:
low-risk activities. As such, our We ensure that: Our Property, IT and Procurement team, • provide a smoke-free workplace and
occupational ill health and accident which reports to the Group Finance suitable resting places;
• a health and safety management system
Director, manages health and safety. ensure that pregnant employees are
rates remain low. We are committed is established, documented, implemented,
The Head of Property, IT and Procurement
•
maintained and communicated allowed time to take antenatal
to the continual improvement of oversees the governance of health and appointments;
throughout the business. This system
our health and safety management is reviewed periodically as appropriate,
safety within the Group, ensuring that
• conduct individual risk assessment
through regular performance health and safety is considered in business
and at least annually; tailored to each individual’s needs; and
decisions at all levels, and reports to the
reviews, the testing of procedures, • health and safety risks which may arise Group Risk Committee. • provide guidance to both pregnant
open communication and increasing throughout 3i’s global operations are employees and their managers.
identified, evaluated and controlled, We seek expert advice as necessary when
awareness. determining health and safety risks and We also recognise the importance of
to prevent injury and ill health;
the measures required to mitigate them. providing opportunities for the wellbeing,
With approximately two-thirds of our • all health and safety incidents are reported
We have retained the services of System physical and mental health of all our
employees based in our London office, we and investigated promptly in order to
Concepts, a specialist independent employees. By investing in our employees’
operate in accordance with the Health and prevent a recurrence;
consultancy, to provide competent health health and wellbeing, we hope to increase
Safety at Work etc Act 1974 and all other our global health and safety performance
• and safety advice. System Concepts has job satisfaction and productivity and reduce
applicable UK legislation. We adopt UK is reviewed on a regular basis; and a consultant based on site at 3i’s London absenteeism. We monitor absenteeism
legislation and guidance globally, where
• 3i’s employees and contracted partners headquarters to provide practical support and undertake constructive return to
practical, as a minimum benchmark for
participate actively in improving health to the business. work interviews with employees where
our health and safety standards, unless
and safety. appropriate, to enable us to support them
country-specific obligations exceed these During the year to 31 March 2019, we had better.
requirements. We regularly review our global health and no RIDDOR (“Reporting of Injuries, Diseases
safety standards and consult with our health and Dangerous Occurrences Regulations Most of our employees use computers for
and safety representatives across our offices 2013”) reportable accidents, and no work their day-to-day work. We undertake an
to identify opportunities for improvement. related accidents or cases of work related assessment of every individual’s workstation
ill health were reported. to assess potential hazards and provide
appropriate adjustments when required.
Wellbeing and awareness We continue to enhance health and safety
We maintained our membership to training and education of our staff. In 2019,
Tommy’s Pregnancy at Work Accreditation we invested in a refreshed online health and
Programme in the UK, which promotes the safety training and awareness module which
health of pregnant women in the workplace. educates employees on risks they may face
As a member of the programme we are at work and on measures they can take to
committed to supporting health during control them.
pregnancy.
Wellbeing at work page 20
A summary of our Global Health and Safety Policy
is available on our website3i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 23
A responsible investor
Our approach to Responsible Investment 24
UNPRI25
Our Responsible Investment Policy 26
Governance framework and
With fewer than 250 employees globally, 3i has a relatively small implementation of the RI Policy 27
direct impact in terms of the environment and other sustainability Our ESG assessment tool 28
issues. However, with assets under management of approximately Modern slavery risk in 3i’s portfolio 29
£13 billion, we have the influence and opportunity to have a greater Opportunities from sustainability-related
positive impact through the decisions we make within our portfolio. challenges30
Private Equity case study: Cirtec Medical 31
Infrastructure case study: Attero 33
ESG assessment tool page 283i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 24
Our approach to Responsible Investment
We believe that a responsible We are uniquely well positioned to make We are committed to evolving our approach
a difference as a responsible investor: to responsible investment continuously,
approach to investment will add
and have an interdisciplinary sustainability
value to our portfolio. • for more than a decade we have carried
project team devoted to that task. In FY2019,
out our investment activities under our
In particular, we believe that: this team presented to the Board on a
rigorous Responsible Investment Policy,
number of initiatives we are undertaking to
• the effective assessment of ESG risks and which is embedded in our investment and
improve our consideration of sustainability
opportunities has a positive effect on the portfolio management processes.
risks and opportunities within our
value of our investee companies and of It informs our investment decisions and
investment and asset management
3i Group itself; our behaviours as a responsible steward of
processes.
our assets. We have also been signatories
• compliance with local laws and regulations
to the UN Principles of Responsible
may not be enough to meet global
Investment since 2011;
expectations, deliver value and enhance
our reputation and license to operate; and • we have a medium to long-term
• it is vital that we seek to identify all investment horizon, typically buying
material ESG risks and opportunities majority or significant minority stakes in
through our due diligence at the point we our portfolio companies and, since 2012,
invest and manage those risks always being represented on their boards.
and opportunities effectively during the We are therefore well placed to drive
period of 3i’s investment. sustainable growth in our portfolio.
This involves the continuous assessment,
monitoring and management of ESG risks,
as well as targeted investment through
new or existing portfolio companies in
opportunities arising from developments
such as climate change regulation,
changes to consumer preferences in
response to environmental issues and the
development of business solutions to
global sustainability challenges; and
• we make a limited number of new
investments each year, allowing us to be
very selective in our approach to
investment.3i Group plc Sustainability report 2019
Introduction A responsible employer A responsible investor A good corporate citizen Global Reporting Initiative 25
UNPRI
Since 2011 we have been
signatories to the UN Principles About the UNPRI
for Responsible Investment. The United Nations-supported Principles As a signatory, we commit that we will:
for Responsible Investment Initiative
(“UNPRI”) is an international network of
investors working together to put into Principle 1 Principle 2
practice six Principles for Responsible
Investment. Incorporate ESG issues into Be an active owner and incorporate
investment analysis and decision- ESG issues into our ownership
The Principles are voluntary and making processes. policies and practices.
aspirational. They offer a menu of
possible actions for incorporating ESG
issues into investment practices across
asset classes. Responsible investment
is a process that must be tailored to fit
each organisation’s investment strategy,
approach and resources.
Principle 3 Principle 4
The UNPRI has quickly become the Seek appropriate disclosure Promote acceptance and
leading global network for investors to on ESG issues by the entities implementation of the Principles
demonstrate publicly their commitment in which we invest. within the investment industry.
to responsible investment, to collaborate
and learn with their peers about the
financial and investment implications
of ESG issues, and to incorporate these
factors into their investment decision-
making and ownership practices. Principle 5 Principle 6
Work together with other signatories Report on our activities and progress
to enhance our effectiveness towards implementing the Principles.
in implementing the Principles.
www.unpri.orgYou can also read
