3i Group plc Sustainability report 2021 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 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 Introduction 03 performing on environmental, social and governance (‘ESG’) and sustainability matters. There have been no A responsible investor 11 significant changes from previous reporting periods in the material topics we are reporting on. This report A responsible employer 30 relates to the financial year to 31 March 2021. A good corporate citizen 43 This report was submitted to an internal verification process. Our GHG emissions data was externally GRI and SASB 63 verified. We have chosen to report in accordance with the Contacts 71 Global Reporting Initiative (‘GRI’) and, for the first time this year, Sustainability Accounting Standards Board (‘SASB’) standards. A guide to using this report This interactive PDF is designed to help you easily navigate the report and find the Page 63 information you are looking for. For optimal experience, it is recommended that this GRI and SASB document is viewed in Adobe Acrobat Reader. Interactive functionality may not work Page 52 when viewed in a web browser or other PDF readers. Third-party verification Click on the dynamic links to access further relevant information within the report Please note that this document is electronic or online, and use the tabs at the top of the page to navigate between sections. only and is not printed.

Guide to the navigation buttons: Guide to the dynamic link buttons: Where else can you find sustainability information? Return to contents Page XX Read more within this document This report should be read in conjunction with Page back our Annual report 2021 and with the Sustainability + www.3i.com policies and case studies on 3i’s website. Page forward For more information online + www.3i.com Return to previous page www.3i.com/sustainability For more information Search 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 03

Introduction

Our purpose

We generate attractive returns for our Our business at a glance 04 shareholders and co-investors by investing Message from the Chief Executive 05 in private equity and infrastructure assets. Responsibilities and accountabilities 08 As proprietary capital investors we have Our values 08 Governance framework 09 a long-term, responsible approach. External benchmarking 10 We create value through thoughtful origination, disciplined investment and active management of our assets, driving sustainable growth in our investee companies. 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 04 Our business at a glance

Founded in 1945, 3i is an investment company specialising in Private Equity and Proprietary capital Assets under management Infrastructure, in core investment markets in northern Europe and North America. Private Equity Private Equity Our Private Equity and Infrastructure n n businesses manage a mix of proprietary Infrastructure Infrastructure and third-party funds. We generate a capital return from our proprietary capital £10.4bn n £16.9bn n investments, as well as fee income from the Scandlines Scandlines funds we manage on behalf of third parties. Scandlines is an investment held for its ability n n to deliver long-term capital returns while generating cash dividends. 3i listed on the London Stock Exchange in Our international reach 1994 and has no controlling shareholders.

7 21 234 Number of Offices Nationalities Employees Office employees London (head office) 152 Amsterdam 11 Frankfurt 19 Luxembourg 6 New York 22 Paris 19 Mumbai1 5

+ www.3i.com/investor-relations Our business model is described Data as at 31 March 2021 in detail in our Annual report 1 We no longer make new investments in Asia, and our Mumbai office is responsible for managing our legacy portfolio in that region. At 31 March 2021, only five of our employees were located outside of Europe and North America and only c.0.2% of our AUM was invested outside of those regions. Our office in Singapore was closed during the year. 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 05 Message from the Chief Executive

Maintaining a strong reputation requires Our sustainability strategy is defined by three key priorities We invest with the objective us to adopt a transparent approach to corporate reporting, including on our of generating attractive progress on driving the sustainability A responsible investor returns through the cycle agenda through our operations 1. We believe that a responsible approach to investment adds value for our shareholders and co- and portfolio. We are committed to communicating in a clear, open and to our portfolio. Our Responsible Investment policy is embedded investors. We aim to achieve comprehensive manner and to maintaining within our investment and portfolio management processes. this objective sustainably by an open dialogue with stakeholders. To It informs our investment decisions and our behaviours as a behaving responsibly as an that end, we presented our approach to responsible manager of our assets. We are rigorous in assessing investor, an employer and as an sustainability and responsible investment and managing ESG risks in our portfolio. Equally, we are keen in our capital markets seminar, which was international corporate citizen. to invest in opportunities that contribute to the development of webcast for the benefit of all stakeholders solutions to global sustainability challenges. We make a limited Simon Borrows, Chief Executive in September 2020. number of investments each year, allowing us to be very selective This report is important in ensuring in our approach to new investment. A responsible approach to managing our that transparency. It should be read in business and our portfolio has been key conjunction with our 2021 Annual report, to how we have operated since 3i was A responsible employer which also contains our Taskforce for founded in 1945. Our purpose at that Climate-Related Financial Disclosures 2. Our people are our main asset and recruiting, retaining and time was to contribute to rebuilding post- (‘TCFD’). developing our talent is one of our most important priorities. war Britain by providing growth capital We promote an open communication culture and provide an to small businesses. The responsibility We are committed to evolving our that came with that original purpose still disclosures continuously to improve inclusive and supportive working environment with opportunities guides the Group’s behaviour today. their relevance for all stakeholders. for training and career development. We value diversity and our employees are recruited, promoted and rewarded on the basis Over the years, we have built a strong of merit, ability and performance. We are an equal opportunities reputation and track record by investing employer and prohibit all forms of unfair discrimination. and managing our portfolio responsibly and by operating according to high standards of conduct and behaviour. We A good corporate citizen have achieved this through a relentless 3. We strive to embed responsible business practices throughout focus on strong governance, both at 3i our organisation. We do this by having robust policies and itself and in our investee companies. This has allowed us to earn the trust of our processes in place and by promoting the right culture among shareholders, co-investors and investee our staff. We expect our employees to act with integrity, to be companies, and to recruit and develop accountable for their behaviour, and to approach their roles with employees who share our values and ambition, rigour and energy. All employees are formally evaluated ambitions for the future. against our values as part of our appraisal process every year.

+ www.3i.com/investor-relations Page 11 Page 30 Page 43 Download our Annual report A responsible investor A responsible employer A good corporate citizen 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 06 Message from the Chief Executive continued

Managing our business and Protect the wellbeing of our Maintaining staff engagement has gained Employees across the business also our portfolio through the employees and contractors new importance while working remotely, launched a ‘Business as unusual’ hub and senior managers and team leaders on the staff intranet to access these Covid-19 pandemic Our focus has been on keeping our have made a particular effort to keep staff resources and which also provides Throughout the Covid-19 pandemic we employees safe, motivated and able to informed through regular updates and details of virtual social events, internal have focused on protecting the wellbeing fulfil their roles effectively. Since the start virtual meetings. We have had to on-board competitions and other initiatives set of our own employees and contractors, as of the pandemic, 3i offices have been several new recruits in this new environment, up to facilitate staff engagement. closed in accordance with local guidance including the three new graduate trainees well as those of our portfolio companies. In addition to our direct employees, and regulations, our employees have who joined us in September 2020. We have worked closely with our portfolio been working mostly from home and we employ a number of contractors for companies to ensure that they remain able international travel has been cancelled with In recognition of the potential mental a range of services, including reception, to operate and contribute positively to very few exceptions. We have been able health consequences of working remotely cleaning and maintenance services. their communities, and provided financial to re-open some of our offices for brief through prolonged periods of lockdown, Even though we have only used our offices support where required. In addition, we periods, in accordance with local guidance. we engaged a specialist mental health and sporadically since the pandemic first started, have set up a £5 million Covid-19 charitable During these periods, attendance at the wellbeing consultancy to run a series of we have decided to maintain this third-party fund to alleviate the hardships suffered office has been optional, we have taken webinars and virtual workshops for all staff outsourced support, even during periods of by many, which we have been deploying steps to make the offices safe and reduce on how to deal with anxiety and stress. office closures. across our markets. the risk of transmission as far as possible. We also ran specific mental health training The transition to remote working was sessions for managers to help them to Support our portfolio 3i’s approach to the pandemic has been seamless, thanks to the great co-operation identify the first signs of mental ill health operationally and financially driven by three priorities. and work ethic of all our employees and in their teams and offer support where Most of our portfolio companies have consistent investments in our IT and remote needed, and provided specialist training shown great resilience to the challenges working infrastructure over the years. Our for c.20 mental health first aiders across the posed by the pandemic and its economic employees have been given the flexibility business. Finally, we arranged a number of consequences. This underpinned a strong to reconcile their work commitments with virtual seminars on mindfulness and stress 22% return for the year to 31 March 2021. other personal and family commitments management for all staff. Nevertheless, a small number of our such as childcare and elderly care. Throughout this period, we have ensured portfolio companies, particularly those that our employees have the resources to exposed to the travel and automotive continue to focus on their physical health. sectors, have experienced some difficulties. Bi-weekly fitness and nutrition consultations previously offered in our London office have been made available virtually to all employees. 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 07 Message from the Chief Executive continued

Our investment teams have been engaging Ensuring that our portfolio companies In May 2020 we set up an additional SaniSure has been contributing its expertise actively with our portfolio companies in remain financially sustainable through the £5 million charitable fund to help alleviate and products to the development and order to support the management of a crisis is the right thing to do over the long the impact of Covid-19. The £5 million was production processes for several of range of operational challenges that have term for all stakeholders involved, including funded from performance-based awards the leading Covid-19 vaccines to have arisen as a result of Covid-19, including portfolio company employees, those of due to Private Equity and Infrastructure been approved for inoculations globally, making sure that their employees and their supply chains, the communities in investment team members which had been including several of the leading FDA customers, where applicable, remain safe which they operate, as well as our own provided for through the income statement and CE approved vaccines. Ionisos has also and healthy. The other key area of focus has, shareholders and co-investors. in prior periods. The aim of the fund is been contributing, notably by sterilising of course, been the financial health of our to support charities particularly affected primary packaging components for portfolio companies and we have provided Support the communities in which by the pandemic, focusing on the most vaccines, swabs and sample containers for liquidity support where necessary. In April we and our portfolio operate vulnerable communities in countries where PCR tests. 2020 we provided an equity injection of 3i and its portfolio companies operate. We focus our charitable activities principally We are proud of the hard work, ingenuity €23 million to support Hans Anders, a value- Within this, our donations have targeted a on the disadvantaged, the elderly, on and community spirit displayed by our for-money optical retailer with shops across number of areas, including food provision, young people and on education. Most of employees and those of our portfolio North West Europe, whose stores had been education, domestic violence, advancement the charities that we support have played companies throughout this crisis. Despite closed in the initial phase of the pandemic. of minorities and disadvantaged groups, a key role in protecting a range of different the difficulties we will continue to face Since then, Hans Anders has been able community development and mental health. vulnerable groups from the worst impacts until the worst of the crisis is over, we do to operate a service by appointment and of the pandemic and of living under Our portfolio companies have also been not intend to change our approach and has seen good performance and earnings lockdown. In addition, we have encouraged doing their part in supporting their local will continue to conduct our business in growth. In April 2020 we also provided our employees to volunteer their time with communities and, as majority or significant accordance with our purpose and values, £46 million of liquidity support for Audley nationally-sponsored schemes or with local minority shareholders, we have encouraged with a focus on the interests of the broader Travel, a provider of travel services, charities to provide assistance to vulnerable this. Importantly, some of our portfolio group of stakeholders that we serve. which has had no meaningful departure groups throughout this difficult period. companies have been able to contribute revenues since the start of the pandemic. Simon Borrows directly to the immunisation effort. The bookings trajectory since our further Our charity budget for the financial year to Chief Executive investment has been positive, driven by 31 March 2021 increased by approximately May 2021 improving sentiment following the progress 40% to respond to the additional demands with vaccines. for support arising as a result of the pandemic.

Page 30 A responsible employer Page 11 A responsible investor Page 55 Community 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 08 Responsibilities and accountabilities

The Board of Directors as a whole is Our values 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 Ambition Rigour and energy shareholders, other investors, existing Focus on generating value Clarity of vision supported and potential portfolio companies, for all our stakeholders by practical execution colleagues, suppliers and others who Strive for excellence and Thorough analysis leading engage with 3i. continuous improvement to clear decision making and effective implementation

The Executive Directors and business and High levels of energy, a strong functional leaders (together, the ‘Executive work ethic and effective Committee’) are responsible for ensuring team working 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, are designed to ensure consistent standards of conduct. All employees are required to be aware of, Accountability Integrity and abide by, 3i’s policies and procedures. These are available to all staff through the Personal and collective Doing the ‘right thing’ intranet portal and reinforced through regular responsibility for protecting even when difficult and enhancing 3i’s assets training. Employees are encouraged to make and reputation Relationships built on trust, suggestions to improve them. candour and respect An ownership mentality in managing costs, resources and investments

An aversion to building hierarchy

Page 09 Governance framework 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 09 Governance framework

The Board of Directors and its Board of Directors Chief Executive Committees review our approach Ownership and oversight of sustainability approach and Day-to-day accountability for sustainability to sustainability, corporate policies, including the Responsible Investment policy responsibility and related

policies and address specific Principal Board Committees Chief Executive Committees issues if they arise. Audit and Compliance • Financial reporting, risk and Executive Sustainability responsibilities include: Day-to-day accountability for sustainability Committee internal controls Committee • Assisting the Chief Executive in setting rests with executive management and, in Met six times in the year • Oversees the assessment and Meets monthly the Group’s strategy, including its particular, the Chief Executive. The Chief management of ESG issues and risks, Assists the sustainability aspects Executive has also established a number including those related to environmental Chief Executive • Human rights and employment legislation legislation and regulation, climate change, in managing of committees to support him in overseeing • Employee incentives and remuneration governance and compliance and the business and monitoring policies and procedures reputation through the Group Risk and to address issues if they arise. Our Committee reporting, delegating Investment Sustainability responsibilities include: governance framework is outlined opposite day-to-day responsibility to the Chief Committee • Implementation of the Responsible and more information is provided in our Executive Meets frequently Investment policy as required Annual report. • Oversees the approach to tax policy and • Assessment and management of ESG risks strategy Acquisition, and opportunities in the portfolio, including management and the management of risks resulting from Covid-19 Remuneration Committee • Director and senior management disposal of investments Met five times in the year remuneration and Group remuneration • Due diligence of ESG risks and opportunities structure in the investment process • Oversees the implementation of • Compliance with applicable ESG regulation in the fair remuneration for employees portfolio (eg Modern Slavery Act, environmental regulations) Nominations Committee • Diversity and composition of the Board Met five times in the year Group Risk Sustainability responsibilities include: Committee • Oversight of the Responsible Investment policy Valuations Committee • Valuation policy Meets four times • Oversight of relevant environmental legislation per year Met four times in the year • Valuation of the investment portfolio and regulation Oversees the • Responsibilities includes the consideration • Assessment of ESG risks for the Group and Group’s risk of the valuation impact of sustainability- the portfolio related matters management framework • Assessment of regulatory and compliance risks, including financial crime and bribery • Assessment of operational risks, including cyber security and people risks and recently Covid-19 • Review of incident management, business continuity and disaster recovery plans + www.3i.com/investor-relations Download our Annual report 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 10 External benchmarking

We believe that it is important to evidence our commitment Sustainability indices CDP We have been a member the FTSE4Good Index Series CDP (formerly Carbon Disclosure Project) is an international, to operating responsibly and since 2011. In addition, 3i became a member of the Ethibel not-for-profit organisation providing a framework which enables to show how we are performing. Sustainability Index (‘ESI’) Excellence Europe in September 2016 businesses to disclose their greenhouse gas emissions and Accordingly, we provide a and was reconfirmed as a constituent of that index in May 2020. other metrics voluntarily. 3i has been making annual submissions wealth of relevant information to CDP since 2006. to shareholders and other 3i’s climate change score in the 2020 CDP assessment was B and its supplier engagement rating was A-. interested stakeholders.

+ www.ftse.com/products/ + www.cdp.net indices/FTSE4Good + www.forumethibel.org

ESG Transparency – a Private Equity Index UN Principles of Responsible Investment 3i ranked as the top performer in Orbis Advisory and Since 2011, we have been signatories to the UN Principles ITPEnergised’s first annual transparency index analysing for Responsible Investment. 160 private equity firms’ ESG reporting performance, based 3i’s scores for the 2020 UNPRI assessment report were on public disclosures. A for Strategy and Governance, and A+ for both Private Equity and Infrastructure.

+ www.itpenergised.com/esg- + www.unpri.org transparency-private-equity- index-2020/ Page 11 A responsible investor 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 11

A responsible investor

With fewer than 240 employees globally Our approach to responsible investment 12 and a small office footprint, 3i has a Our Responsible Investment policy 13 relatively small direct impact in terms of the Our RI policy and the Sustainable environment and other sustainability issues. Development Goals 14 Governance framework and However, with assets under management implementation of the RI policy 15 of £16.9 billion, we have the influence and Our ESG assessment tool 17 opportunity to have a greater positive Sustainable growth opportunities 18 impact through the decisions we ESG risks 27 make across our portfolio. Private Equity case study – SaniSure 28 Modern slavery risk in 3i’s portfolio 29 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 12 Our approach to responsible investment

We believe that a responsible • we make a limited number of new approach to investment is a investments each year, allowing us to be very selective. We have the flexibility material lever for value creation to screen out opportunities that have an in our portfolio. unsustainable impact on the environment and societies in which they operate, We are well positioned to have a positive inconsistent with generating long-term impact through the decisions we make value. across our portfolio: We are committed to evolving our approach • we carry out our investment activities to responsible investment continuously, and according to our Responsible Investment have an interdisciplinary sustainability policy, which is embedded in our project team devoted to that task. summarised version of 3i’s full policy processes. We have also been signatories This is a

to the UN Principles of Responsible Page 13 Responsible Investment policy

Investment since 2011; Our Responsible Investment policy -based knowledge

------• thanks to our proprietary capital we The following is a summary of the full 3i Responsible. Investment policy. Page 18 References throughout this Policy to the ‘Portal’ are to 3i’s global internal web companies to: portfolio have a medium to long-term investment Sustainable growth opportunities system which is accessible by all 3i staff 1 (International ------nal standards horizon. In addition, we typically have . Page 27 3i will use its influence as an investor to promote a commitment in our ▪ Comply, as a minimum,) and, with where applicable appropriate, local relevantand international internatio laws and regulations majority or significant minority stakes in our ESG risks (Applicable) Lawswhere these are more stringent than Applicable Laws Standards portfolio companies and, since 2012, have corporate governance. ▪ Mitigate any adverse environmental and social impactsstrong and enhance positive effects on the always been represented on their boards. environment, workers and relevant stakeholders. ▪ Uphold high standards of business integrity and 2, to all new investment opportunities considered

they manage or advise) across all sectors and We are therefore well placed to drive Scope , subject to certain exceptions This Policy applies (and the funds which long-term, sustainable growth in our by 3i’s business lines geographies from November 2011 (the date on which this Policy became effective).

portfolio. This involves the continuous 3i’s responsible investment approach

3i will: tice and adherence to this Policy across its investmentESG”) matters business. within assessment, monitoring and management ▪ Promote consistent prac of the long-term sustainability factors environmental, social and governance (“ ▪ Provide sufficient information, instruction, training and resources to its staff to ensure that they can effectively manage their investment activities. relevant to our portfolio investments, and e IFC is the private sector arm of thetechnical World the relevant IFC Performance Standards and associated Guidelines and the include the associated risks and opportunities; and 1 The International Standards International Labour Organisation (ILO) Fundamental-specific Conventions. examples of Th good industry practice. The most basic labour Bank and its Performance Standards are intended to provide a reference for businesses in emerging markets for environmental and social standards. The IFC’s Environmental, Health and Safety (EHS) Guidelines are reference documents with general and industry rights have been codifiedions fundamental by the ILO in to the the 1998 rights Declaration of people) by at onfunds work, Fundamental raised, irrespective or substantiallyPrinciples of the level and raised, ofRights development by at fundWork management whichof a identified 8 convent investments made (i mum corporate governance standards) do not apply to

country. 1 2 This Policy does not apply to Certain areas of the Policy (e.g. the mini platforms prior to their acquisition by 3i or (ii) by funds raised, or substantially raised, prior to November 2011 when this Policy became effective. PPP / project. investments by the Infrastructure business as they are either not relevant or inappropriate to those investments

3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 13 Our Responsible Investment policy

We have a clear and comprehensive Our RI policy is integrated into our Objectives of our RI policy Responsible Investment (‘RI’) investment and portfolio management 3i’s objectives as set out in the RI policy are to processes and procedures and is supported invest only in businesses which are committed to: policy which is embedded into by detailed guidance notes, external our investment and portfolio advisers and dedicated internal resource. monitoring processes and sets 3i commits to use its influence as an investor The environment Fair and safe out our stewardship approach. to promote a commitment in its investee A cautious and responsible approach to working conditions companies to: the environmental management of their In our experience, companies with Respecting the human rights of their • comply, as a minimum, with applicable business operations by making efficient workers; maintaining safe and healthy high ESG standards are typically local and international laws and use of natural resources and mitigating working conditions for their employees, better run, better at identifying regulations and, where appropriate, environmental risks and damage. contractors and suppliers; treating their and managing their business risks relevant international standards (such as employees fairly; upholding the right to the IFC Performance Standards and the freedom of association and collective and opportunities for growth and ILO Fundamental Conventions), where bargaining; and respecting the health, generate higher quality earnings these are more stringent than applicable safety and wellbeing of those affected growth. This policy sets out the laws; by their business activities. businesses in which 3i will not invest, • mitigate adverse environmental and social as well as minimum standards in impacts and enhance positive effects on the environment, workers and relevant relation to ESG matters which we stakeholders; and Business integrity Good governance expect new portfolio companies to • uphold high standards of business Upholding high standards of business Clear accountability with defined integrity and good corporate governance. meet, or to commit to meeting over integrity, avoiding corruption in responsibilities, procedures and a reasonable time period. The policy all its forms, ensuring strong data controls and appropriate checks and applies to all our investments, management and cyber security and balances in company management irrespective of their country or sector. compliance with applicable anti-bribery, structures. anti-fraud, anti-money laundering and data protection laws and regulations.

+ www.3i.com/sustainability Summary of our Responsible Investment policy 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 14 Our RI policy and the Sustainable Development Goals

Our RI policy pre-dates the We invest in businesses that benefit publication of the United Nations’ Systematic screening from sustainable growth trends. Many of The systematic pre-investment screening of opportunities, which our businesses already make a positive Sustainable Development Goals ensures that we only invest in companies that commit to adopting impact on the environment and societies (‘SDGs’) and was therefore not a responsible approach to the environment, to respecting the rights in which they operate, including on some designed to align with that of their workers and to engaging fairly with all stakeholders. of the themes highlighted by the SDGs. For example, many of our portfolio framework. In practice, however, companies contribute to improving health we believe our approach and wellbeing, to the transition to a lower supports the achievement of the carbon economy, or to the achievement goals through: of a more sustainable consumption model through a circular economy. The impact Investment in growth we are making across these themes is described on pages 18-27. Our emphasis on generating returns by driving long-term, sustainable growth in our portfolio companies, creating value through investment In addition, many of our portfolio companies in innovation, international expansion and buy-and-build acquisitions, have made public statements on how their while considering the interests of all stakeholders. business activities align with specific SDGs. These include, for example, Action, Hans Anders, Audley Travel, Scandlines, AES Seal, Attero, ESVAGT, Infinis, Ionisos, Joulz, Tampnet, TCR and Valorem.

Page 18 Strong governance Sustainable growth opportunities Our engaged management of portfolio companies through active participation on their boards, setting strategy and encouraging the development of more sustainable business practices. This is supported by our influence as a majority or significant minority shareholder, combined with our emphasis on upholding the highest levels of governance at 3i itself and in the companies that we invest in. 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 15 Governance framework and implementation of the RI policy

The Board of Directors is The management of ESG risks and Due diligence Ongoing portfolio monitoring responsible for the RI policy, opportunities is key to driving value Early-stage assessments typically result Our investment teams carry out a detailed from our investments. It is also key for ensuring it is implemented in recommendations as to which issues review of each of our portfolio companies to safeguarding our reputation as a should be subject to more comprehensive, on a semi-annual basis, in March and across the organisation and for responsible investor. We therefore have ‘deep-dive’ due diligence pre-investment September. The March reviews include the review and approval of any robust processes in place to ensure that and which should be progressed post- a detailed ESG assessment which seeks the overall long-term sustainability of each investment. Among the key areas of focus to track progress in relation to existing, material changes. The Investment investment is considered before making an Committee is responsible for the for us is governance, to ensure that the identified ESG risks and opportunities, investment and on an ongoing basis. potential investee company’s management including those related to environmental implementation of the RI policy, team contains the talent, knowledge and and social impact, as well as identifying and for ensuring that it is executed Investment screening experience necessary to manage the potentially new and emerging risks and in a meaningful way by 3i’s All new investment opportunities are particular risks and opportunities facing opportunities. An update is received in investment teams in all investment subject to a high-level review of their ESG that business, including those across the September, when progress against action profile early in the investment assessment ESG spectrum. We will also assess the points and relevant KPIs raised in March is and portfolio management process and prior to commissioning other material ESG issues relevant to reviewed and new action points may be set. processes. comprehensive due diligence. Early that business, including climate risk and screenings involve a review of the business’s environmental and social factors. Where ESG risk profile, including an assessment of necessary, we engage with external longer-term sustainability trends, based on consultants to assist with specialist each company’s sector and end markets. due diligence. For Private Equity investment opportunities, The key findings from the in-depth a full review of each potential investment assessments and due diligence are included is also completed by an external specialist in the body of each investment paper ESG adviser as part of the investment submitted to the Investment Committee. assessment process. The material issues and overall sustainability profile of the business are considered by the Investment Committee, which may raise questions with the investment team and/or require further work to be done as part of its investment decision. Any material findings from the due diligence process which require remedial action or attention in the near term are integrated into 180-day post-investment plans. 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 16 Governance framework and implementation of the RI policy continued

Each semi-annual portfolio company review Risk management is discussed in a dedicated meeting that The 3i Board has delegated day-today is typically attended by members of the responsibility for risk management to Investment Committee, including the Chief the Chief Executive who is assisted by Executive, the Group Finance Director and the Group Risk Committee (‘GRC’) which Group Strategy Director, as well as by senior includes the heads of 3i’s Private Equity members of the investment teams and and Infrastructure businesses and other some non-executive Directors. Sustainability functional heads drawn from across the is a standing, and typically the first, business. The GRC maintains the Group’s discussion item at these meetings, where risk review, which identifies the principal attendees assess each company’s ESG risks risks and new and emerging risks facing 3i, and how these are being managed, and as well as the associated mitigating actions also challenge the long-term sustainability and key risk indicators. The risk review is strategy and opportunities for related value- updated quarterly. enhancing investment. Following the six-monthly portfolio reviews, In addition to the company-specific actions detailed reports are prepared by the Private identified we use the data collected through Equity and Infrastructure businesses and the our detailed ESG assessments to: managers of Scandlines, which summarise • identify key trends and opportunities the short, medium and long-term ESG risk across the portfolio on which to build. profiles and trends across their respective For example, we held a portfolio plastics portfolios as well as detailed summaries of roundtable in 2019 and a carbon the specific ESG risks and opportunities roundtable in 2021; relevant to each material portfolio company • identify themes where specific portfolio and any material ESG incidents in the companies could benefit from period. The reports are presented to the collaboration; GRC by the Private Equity and Infrastructure • enhance our decision making process for businesses and the managers of Scandlines. new investments; and The GRC reports to the Audit and Compliance Committee and an overview of • provide a positive feedback loop to the findings is also presented to the Board. further develop and enhance our management of future ESG risks and opportunities.

+ www.3i.com/investor-relations A detailed description of our risk management framework is set out in our Annual report Page 27 An overview of our portfolio ESG risks 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 17 Our ESG assessment tool

Developed over a number of years, and subject to annual review and refinement, our proprietary ESG assessment tool provides a framework for our investment teams to consider the inherent ESG risks and opportunities in each investment and Assessment Action plan and strategy development to develop detailed, company-specific completion remediation and long-term value creation plans. After making the initial investment, this tool is used by our investment teams Deal team in conjunction with portfolio company management teams to ensure that we Portfolio company Proprietary Aggregation Output achieve engagement and accountability management assessment tool & analysis engine on these matters throughout our period of Regularly refined and Developed and calibrated ownership. A great deal of care is taken to benchmarked against external against historic portfolio tools and research performance ensure consistent processes and procedures Asset review dashboard are put in place across the portfolio to improve the accuracy and comparability of Environmental questions Comparison to 3i Action log the data and information that we receive. minimum standards The assessment tool is refined on an Social and Policy questions ongoing basis, with the input of several Trend analysis Portfolio dashboard stakeholders, to reflect emerging themes Governance questions and impact areas and to ensure that we Risk scoring and 3i-wide output remain abreast of best practice. Over the Assessment categorisation past few years, we have improved the databank granularity of our assessment across a Investment decision support Feedback loop number of areas, including environmental impact, cyber security and diversity and Investment case Opportunity tracking inclusion. As a result of these more granular and monitoring reviews we have been able to identify a number of themes across the portfolio Risk log which will allow us better to manage the various sub categories of ESG risks and Historic assessment opportunities on a portfolio-wide basis. responses For example, in March 2021 we held a portfolio carbon roundtable, to discuss Risk weighting/analysis the commercial benefits and opportunities arising from the measurement and abatement of carbon emissions. 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 18 Sustainable growth opportunities

We believe that the systematic assessment of the sustainability profile of our investments can help us not only to manage risks, but importantly can also bring about value growth and opportunities for new or further investment in our portfolio. Many of the businesses we invest in stand to benefit from sustainable growth trends and a number of our portfolio companies already make a positive impact on the environment and societies in which they operate, including on some of the themes highlighted Improving health Transition to a Circular economy by the SDGs. For example, several of our portfolio and wellbeing lower carbon companies contribute to improving health and economy wellbeing, to the transition to a lower carbon 19 22 25 economy or to the achievement of a more sustainable consumption model through a circular economy. 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 19 Sustainable growth opportunities continued

Improving health Private Equity and wellbeing Cirtec Medical Demographic shifts and societal changes Curing illnesses with interventional Structural heart procedures are intensifying pressures on health systems: or implantable medical devices Cirtec Medical’s products are used in transcatheter aortic and mitral valve replacement surgery, where Technological developments are opening up populations in the developed world are artificial heart valves are inserted into the body opportunities to treat life-threatening illnesses becoming older, and developing countries with minimally invasive procedures. This serves or chronic conditions with interventional or as a lifesaving alternative for patients too weak are experiencing greater urbanisation and implantable medical devices. The use of such to undergo open heart surgery and is increasingly devices often delivers better patient outcomes growth in their middle class, with middle- being investigated for lower risk patients as it than traditional drug therapies or invasive class comforts promoting increasingly reduces complications and recovery times. sedentary lifestyles. Combined, these surgery, resulting in fewer side effects and shorter recovery times. Diabetes demographic changes are leading to a Cirtec Medical is a global provider of Cirtec Medical’s ultra-high precision, micron-scale rising prevalence of chronic disease which outsourced medical device and components thin film sensors are used for the manufacture will demand new thinking in the delivery of design, engineering and manufacturing. It serves of wearable sensors used in conjunction with healthcare, innovation in therapeutics and customers in the most innovative and fastest continuous glucose monitoring devices, which an increased focus on prevention. growing therapeutic end-markets and product monitor glucose levels 24 hours a day. When paired platforms. These are examples of applications for with an insulin pump, these sensors can moderate Cirtec Medical’s products: the flow of insulin to ensure glucose levels remain within a healthy range. Chronic conditions We have continued to support Cirtec Medical since Cirtec Medical is among the leaders in the our initial investment in 2017 through a number of manufacturing of implantable neuromodulation buy-and-build acquisitions, integrating with new devices, used as an alternative to long-term capabilities, adding product verticals and investing drug therapy for the symptomatic relief of in high-value intellectual property. persistent or chronic conditions such as chronic pain, incontinence, sleep apnoea, migraine, Parkinson’s disease or epilepsy.

+ www.cirtecmed.com For more information 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 20 Sustainable growth opportunities continued Improving health and wellbeing continued

Private Equity SaniSure Development of biologic drugs and vaccines Biologic drugs and cell & gene therapy are the fastest growing area of the drugs market. They have proven successful in the treatment of many major and chronic diseases, such as some types of cancer and autoimmune diseases, with many more applications in the pipeline. SaniSure is a manufacturer of single-use fluid management products and systems used in the bioprocessing of biologics and vaccines. SaniSure has been contributing its expertise and products to the development and production processes for several of the leading Covid-19 vaccines. Our investment in SaniSure is described in more detail in a case study on page 28.

Page 28 SaniSure case study + www.sanisure.com For more information 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 21 Sustainable growth opportunities continued Improving health and wellbeing continued

Infrastructure Private Equity Ionisos Havea Ensuring product safety Focus on wellbeing and prevention Headquartered in France, Havea is a leader in the through sterilisation through natural consumer healthcare natural consumer healthcare industry in Europe. It manufactures, designs and distributes a wide Sterilising medical and care equipment There is a growing global consumer trend towards range of products from functional and natural food is an essential, non-discretionary part of natural healthcare and personal care products. This supplements to natural personal care products. the manufacturing process of a number of is driven by multiple factors, including an increasing The business operates in a highly regulated medical and pharmaceutical goods. Cold awareness of the issues posed by the use of environment with strict health, safety and quality sterilisation is often required for products certain synthetic chemicals in some products, standards under the European Food and Safety that contain heat-sensitive ingredients or a desire for accountability and transparency in Agency, which checks all products and validates components. ingredients, packaging and sourcing, a rising their health claims. Havea’s products are made with incidence of allergies and an ageing population. Ionisos is the leading independent sustainable, ethically sourced ingredients and are As a result, health authorities are increasingly European provider of cold sterilisation increasingly also sustainably packaged. focusing on prevention through the promotion services. The business treats a wide range of healthy lifestyles and nutrition. As consumers We have continued to support the business since of medical and pharmaceutical goods, become more informed and aware, they increase we first invested in 2017, notably through a number such as gloves, implants, surgical kits and their consumption of natural and organic products of bolt-on acquisitions, which have increased the dialysers, ensuring that they are sterile that contain fewer potentially harmful ingredients business’s critical mass and its ability to develop and safe to use, for example, in surgical and are more sustainable, in terms of sourcing, and market more sustainable products. procedures. Since the start of the Covid-19 manufacture and packaging. pandemic, Ionisos has contributed to the fight against the virus, notably sterilising primary packaging components for vaccines, swabs and sample containers for PCR tests.

+ www.ionisos.com + www.havea.com For more information For more information 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 22 Sustainable growth opportunities continued

Transition to Infrastructure a lower carbon Infinis and Valorem economy Generation of renewable energy Energy production and use and transportation We have continued to support Infinis since first Tackling climate change is are currently responsible for the vast majority of investing in 2016, funding further investment and recognised as one of the defining EU greenhouse gas emissions. Renewable power a number of bolt-on acquisitions. generation remains one of the areas of focus for Valorem is a fully integrated, independent issues of our times. Transitioning our Infrastructure business, as most countries renewable energy operator which develops, to a lower carbon economy will across the world try to increase the proportion owns and operates onshore wind farms, hydro of renewables in their electricity generation mix. involve increasing the weight of projects as well as photovoltaic systems across renewables in the generation mix Infinis is the leading UK generator of low carbon Europe. Today the company is the fourth largest and reducing the carbon emissions power from captured methane. Methane is a highly wind developer (and the largest independent) in associated with our economic and potent greenhouse gas, with a contribution to France and has developed over 2.4GW of installed global warming over 20 times greater than that of capacity across wind, solar and hydro. The business day-to-day activities. carbon dioxide. Infinis’ operations in the year to has built an impressive future pipeline of 4.9GW March 2021 captured 300,000 tonnes of methane, of wind, solar and hydroelectric projects across preventing more than an equivalent of 6.5 million European geographies, of which 2.1GW is at an

tonnes of carbon dioxide (CO2) escaping into the advanced development stage. atmosphere. Since first investing in 2016, we have supported The business operates from 148 geographically investments across Valorem’s portfolio, including dispersed sites across the UK, located close to the expansion in the solar and hydro markets. end-user demand and thereby avoiding both the electrical losses and associated charges from use of the national transmission network. By burning captured methane to generate power, Infinis provides an efficient, secure and non-intermittent source of power generation, which is highly complementary to other renewable sources such as solar and wind, which are intermittent in nature.

+ www.infinis.com www.valorem-energie.com For more information 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 23 Sustainable growth opportunities continued Transition to a lower carbon economy continued

Infrastructure ESVAGT and the Offshore Transmission Owners Infrastructure to support The further development of services for the renewable energy sector the offshore wind industry is a key pillar of our investment case for ESVAGT. As Increasing the importance of renewable investment managers we have supported power generation within the overall power the company’s growth in that segment. generation mix requires the development Services to the offshore wind industry of broader, supporting infrastructure. contributed c.64% of ESVAGT’s pro forma ESVAGT is a leading provider of emergency 2020 EBITDA compared to c.7% at the rescue and response vessels and related time of acquisition in 2015. services to the offshore energy industry In addition, 3i made investments through in and around the North Sea and the its Infrastructure investment vehicles in a Barents Sea and the market leader in the number of Offshore Transmission Owners, fast growing segment of service operation which own critical infrastructure connecting vessels for the offshore wind industry. offshore wind farms to the onshore grid in ESVAGT’s service operation vessels the UK, and are therefore key to the roll-out provide full time accommodation to wind of offshore wind power generation. farm engineers, allowing safe and efficient conduct of continuous maintenance programmes which maximise electricity generation from turbines, improving overall uptime, and ensuring operational robustness of the wind farms for the long term. This is increasingly important for the offshore wind industry as operators are focused on their ability to lower the total cost of energy produced in order to reduce dependency on Government support schemes.

+ www.esvagt.com For more information 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 24 Sustainable growth opportunities continued Transition to a lower carbon economy continued

Group portfolio and Infrastructure Scandlines and Joulz Reducing carbon emissions from Since first investing in 2007 we have Scandlines has committed to continue to transportation infrastructure supported the investments made by make targeted investments with the aim Scandlines in a cleaner fleet of vessels, of making the Puttgarden – Rødby route a Successfully achieving a transition to a and in particular in hybrid propulsion and zero-emissions crossing in the foreseeable lower-carbon economy will require the sulphur emissions reduction technology. future and realising its zero emission abatement of emissions associated with The business pioneered hybrid ferries and vision in the longer term. As a significant public and private transport. has invested more than €300 million in this shareholder, 3i continues to support these Scandlines operates two high-frequency technology since 2013. All six of Scandlines’ objectives. passenger ferries now have hybrid and large-capacity crossings between Through 3i Infrastructure plc, our main propulsion technology and are equipped Germany and Denmark: between Infrastructure investment vehicle, we with state-of-the art scrubbers to reduce Puttgarden and Rødby and Rostock and invested in Joulz, a Dutch company which, particulates emissions. Gedser. Its ports and ferry routes constitute among other services, also designs, installs, a crucial piece of infrastructure that Scandlines continued along this path in leases and maintains medium voltage connects motorways E47 and E55 between 2020, despite the Covid-19 emergency, electricity infrastructure and charging Europe and Scandinavia. with several investments and activities to infrastructure for electric vehicles. This is a future proof its fleet and further reduce its growing business for Joulz, which we have impact on the environment. The business supported notably through the acquisition, made green investments of around announced in April 2020, of GreenFlux’s €6 million in 2020, including: electric vehicle charging station business. • the fitting of a 30-meter high rotor sail on Alongside charging infrastructure for one of its ferries to harness wind power electric vehicles Joulz has also recently and provide supplementary propulsion; acquired a rooftop solar developer, further strengthening its development • the installation of new thrusters on two into a leading integrated energy transition ferries (having already installed one in solutions provider. 2019) which produce less noise and

vibration, and ultimately reduce CO2 emissions by up to 10-15%; and • the re-painting of one of the ferries with silicone antifouling paint, which improves + www.scandlines.com/about-scandlines/about- scandlines-frontpage/finance energy efficiency. For more information + www.joulz.nl For more information 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 25 Sustainable growth opportunities continued

Circular economy Private Equity

The concept of a circular economy Weener Plastics entails gradually decoupling Developing more sustainable plastic packaging economic activity and growth from the use of finite resources. Plastic materials have developed a negative reputation Following extensive research, WP has developed the due to low recycling rates and their leakage in the world’s first 100% recyclable valve, that offers fully It is based on the principles of environment. Unfortunately, alternatives to plastics are not controlled, clean dispensing. This valve is compatible reducing waste and pollution always sustainable. Ensuring the responsible use of this with a wide range of applications for food, home care through innovative design, keeping material therefore requires a coordinated response from and personal care. all stakeholders involved in the plastics lifecycle, increasing • Rethink packaging: refillable packaging is a good materials in use and regenerating the number of products made from recycled materials example of what this approach can deliver. By making natural systems. or, where this is not feasible, designing products that can it possible to easily and efficiently refill a product’s main be processed efficiently to maximise material recovery packaging, it can go through numerous usage cycles, through waste management and recycling. Investment in removing the environmental impacts of production new packaging designs and technologies is an essential and logistics. part of this shift. • Low-impact materials: WP has developed a wide range Weener Plastics (‘WP’) is a leading manufacturer of of sustainable materials that reduce the use of fossil innovative plastic packaging systems for fast moving feedstock and are produced with a lower carbon consumer goods companies. It supplies the world’s leading footprint. These materials meet all product specifications A-brands and private label players and focuses on the and functionality requirements and are also suitable for design, development and manufacturing of value added food applications. caps, valve closures and roll-on balls for the personal care, food and beverage, and home care market. • Eco-efficient production and optimised logistics: WP improves its processes and invests in state-of-the art WP is fully committed to playing an active role in equipment to optimise production conditions, reducing supporting the transformation to a circular economy. the greenhouse gas emissions associated with its The company has set out a clear ambition for all of its production processes. The company is also taking products to be recyclable, re-usable or re-fillable by 2025, steps to minimise the impacts of its inbound and with zero waste to landfill by the same date. To achieve outbound logistics. these ambitions, WP published a Design for Sustainability strategy focused on: Since first investing in 2015, we have supported WP’s investments in R&D and in a number of bolt-on acquisitions • Design packaging for recycling: WP has made the which have broadened its product portfolio and recyclability of its packaging central to all of its designs, geographic reach. by consulting with partners through the entire chain, including customers, sorting and recycling companies. + www.wppg.com/ downloads/#sustainability-csr-report For more information 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 26 Sustainable growth opportunities continued Circular economy continued

Private Equity Infrastructure Evernex Attero and HERAmbiente Reducing the environmental Recovering and reusing energy impact of IT equipment and raw materials from waste The manufacture, use and disposal of Waste is a significant issue worldwide, IT equipment can have a high impact on and growing volumes of waste are being the environment. A single server requires generated as global populations, living the equivalent of 660 trees to absorb standards and consumption increase. the CO emissions associated with its 2 Headquartered in the Netherlands, for manufacture and c.50 million tonnes of over 90 years Attero has been active in e-waste are produced globally each year. Evernex works with its clients to: recovering and reusing energy and raw Reducing the environmental footprint of materials from waste. Attero owns energy IT equipment can therefore have a material • Repair their IT assets, extending their life from waste plants, sorting and pre- positive impact. cycle and thereby eliminating waste and reducing the amount of new equipment treatment facilities, anaerobic digestion Headquartered in France, Evernex manufactured; facilities, composting facilities and landfill maintains IT equipment that is critical for sites. The company processes waste from customers’ business continuity, with full • Reuse IT assets, giving a life to equipment a diverse mix of domestic municipalities, coverage of all equipment (servers, storage that has been reconditioned and finding commercial and industrial customers, as well and network) and all OEMs. The business alternative ways to use equipment; and as a number of UK and Irish exporters. As an maintains over 220,000 IT systems across • Recycle used equipment with adequate important player in the recycling of plastics the world. Its model is built on finding data erasure capabilities, by in Europe, Attero makes a significant eco-friendly solutions for its clients so reconditioning parts to be used for contribution to the development to a that they can manage their IT infrastructure repairs, or recovering precious resources circular economy for plastics. with the lowest environmental impact. such as precious metals. HERAmbiente is the largest player in Since first investing in Evernex in 2019, we the Italian waste treatment and disposal have funded the company’s further growth market, with over 90 waste treatment and and development, notably through the disposal plants, and a strong and stable acquisition of Technogroup, the leading market position in its home region of Emilia third-party IT maintenance player in the Romagna and more broadly in Northern and DACH region. Central Italy. It recycles materials, generates electricity from the waste that cannot be recycled, and sells biogas from landfills.

+ www.evernex.com/corporate- + www.attero.nl social-responsibility www.ha.gruppohera.it For more information For more information 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 27 ESG risks

We make a limited number of new and mitigation of ESG risks and work with Climate change to ensure this risk is mitigated appropriately. investments every year in countries portfolio company management teams to While our portfolio is generally not We also continue to raise cyber risk ensure that ESG risks and long-term awareness with our investment teams and and sectors that generally have a immediately vulnerable to the risks posed sustainability are addressed in their by climate change, we do recognise our portfolio through regular training and low ESG risk profile. We have the strategy; and that climate change affects many of our forums and periodically conduct cyber flexibility to screen out investment • our Investment Committee has investments through changes in regulation, audits of our portfolio through an external responsibility for portfolio risk changes in consumer preferences or network security consultancy. If any opportunities which are overly incidents occur, appropriate information is exposed to ESG or other risks. management, with oversight from the stakeholder pressure to reduce their carbon GRC and Board of Directors (see page 9). and broader environmental footprint. shared throughout our investment teams to We are able to sell investments To mitigate this risk, we ensure that our promote our understanding of this evolving Our annual stress test scenario planning, risk. We also ensure that developments and that become or have the potential which underpins our Viability statement portfolio companies understand their own environmental impacts and stay abreast of best practice are shared across the portfolio to become exposed to ESG risks (set out in our Annual report), also models with relevant members of portfolio company that our Investment Committee a range of environmental impacts on regulatory and market developments, and that they develop their commercial offering management teams. considers are unacceptable and our portfolio. to ensure that it remains attractive to their Occupational health and safety we are not obliged to continue to customers and that it meets stakeholder Key portfolio ESG risks The safety and wellbeing of our portfolio invest in any particular sector or expectations. Covid-19 companies’ employees is a key priority for sub-sector. As a result, our portfolio In March 2021 we facilitated a carbon us. Occupational health and safety is a risk The impact of the Covid-19 pandemic overall has a relatively low ESG roundtable, hosted by a specialist across many of our portfolio companies, and has been the most significant risk that our adviser, which brought together over particularly in our Infrastructure portfolio, risk profile. portfolio has been exposed to over the past 20 of our portfolio companies. While given the nature of those businesses. To 16 months and has been at the forefront many companies measure their carbon mitigate that risk, as significant shareholders We have very strong portfolio risk of our risk assessment and mitigation management processes: footprint to meet regulatory obligations or we ensure that each portfolio company processes. Throughout this period, our client requirements, carbon footprinting has robust health and safety policies and • we systematically screen all new investment teams have engaged with is still under-used as a potential value procedures in place, that all incidents are investment opportunities and undertake our portfolio companies to support the creation and risk mitigation lever. The logged appropriately and acted upon, that ESG due diligence before making new management of the range of operational purpose of the event was to highlight the there is clear board-level responsibility investments and monitor all relevant ESG and financial issues that have arisen, with commercial benefits of carbon emission for health and safety and that sufficient and reputational risks through our rigorous employee health and safety being our first measurement and abatement, including resources are dedicated to this area. portfolio monitoring processes priority. The vast majority of our portfolio greater operational efficiency, an improved (see pages 15-17); companies have performed well through reputation and better access to capital. • we make majority or significant minority the pandemic. With our strong balance investments and are represented on the sheet, we have been able to provide Cyber security boards of our portfolio companies, where financial support to two companies that Cyber security is an area of increasing we ensure that ESG risks are assessed have required additional liquidity to manage vulnerability for many companies, and we and that adequate mitigation plans are through this difficult period. have been very alive to the risk of cyber + www.3i.com/investor-relations put in place; breaches or loss of personal data. As For more information in our Annual report: • we ensure that there is board-level significant shareholders in our portfolio – Our country and sector focus responsibility at each of our portfolio companies we have supported material – A comprehensive risk review companies for the continuous assessment investment in IT and security infrastructure – Our Viability statement 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 28 Private Equity case study – SaniSure

SaniSure’s products are used in the Contributing to the development SaniSure helped design, manufacture, production of biologics, including fast SaniSure’s contribution to the of effective treatments for chronic sterilise and supply the new assemblies growth niche areas such as cell & gene development and production used in the production process. The illness and vaccines therapies. Biologic drugs are derived of Covid-19 vaccines assemblies produced by SaniSure are from living organisms and require a Demographic changes across the world SaniSure has been contributing used to link bioreactors together to complex manufacturing process to are leading to an increasing prevalence its expertise and products to the transfer the vaccine aseptically and avoid ensure end-products are stable, safe of major chronic diseases, such as cancer development and production processes any contamination. SaniSure was able to and produced at optimal yields. and autoimmune disease. Biologic drugs for several of the leading Covid-19 vaccines produce finalised drawings, manufacture, have proven successful in the treatment Its single-use bioprocessing fluid to have been approved for inoculations sterilise and deliver new assemblies in of many such diseases, with many more management products have significant globally, including several of the leading less than five weeks. Its rapid scale up applications in the pipeline. advantages compared to multi-use FDA and CE approved vaccines. supported achieving fast time to clinical technology in the development and SaniSure is a leading manufacturer of trials and commercial production of the manufacturing process, including Partnership with a leading single-use fluid management products Covid-19 vaccine. increased flexibility and cleanliness, Covid-19 vaccine developer and systems used in the bioprocessing of lower contamination rates and a lower In February 2020 SaniSure was biologics and vaccines. environmental impact, as the adoption contacted by a leading institution that 3i created the SaniSure platform through of single-use technology results in was developing a new Covid-19 vaccine. a buy-and-build process, combining 50% less energy and water consumption This organisation chose to use SaniSure’s Cellon, Silicone Altimex and TBL compared to multi-use steel bioreactors. PharmaTainer™ to manufacture the Performance Plastics in 2019 and then first doses of the vaccine which would acquiring Sani-Tech West in 2020. eventually be used in the Phase 1 clinical trial. SaniSure serves the leading pharmaceutical, biotech and contract As this programme progressed through manufacturing customers worldwide and clinical trials, SaniSure worked with the has a manufacturing and sales footprint organisation and its manufacturing across North America, continental Europe partners to rapidly scale up production. and the UK. It is now among the largest SaniSure had strong relationships with independent pure-play bioprocessing key members of the supply chain that businesses in the world, serving a have leveraged its custom assemblies growing market which now includes and PharmaTainer™ for their upstream the development and production of and downstream processes for critical Covid-19 vaccines. cancer therapies for several years. 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 29 Modern slavery risk in 3i’s portfolio

As a responsible investor, 3i’s approach to modern slavery in the 3i specialises in its core investment For example, in relation to certain relevant 3i invests only in companies context of its investment portfolio is markets in northern Europe, the UK and portfolio companies (eg retail companies incorporated within its RI policy, which is North America, which have a relatively low with supply chains in Asia) there is an that are committed to ensuring described in detail in this document. 3i’s potential risk of slavery according to the increased focus on the extent to which: that there is no slavery or human policy has, for some time, been to avoid Global Slavery Index (‘GSI’). • the company has a supply chain policy/ investing in certain businesses which we trafficking in their businesses Our Modern Slavery Statement includes code of ethics in place; view as unethical, including those which detailed information on 3i’s assets under • who at board level has responsibility for or supply chains. do not respect the human rights of their management and portfolio turnover by monitoring supply chain issues; workers. We published our statement geography. For the year ended 31 March under the Modern Slavery Act for FY2020 • the extent to which supply chain audits are 2020, 97% of 3i’s AUM was in northern in September 2020 and an updated carried out, and by whom; and Europe and North America, while 94% statement for FY2021 will be published • whether there have been any material of portfolio turnover was generated in in September 2021. issues in the supply chain in the past those regions. 12 months. With particular regard to modern slavery, However, we are aware that many of the one of the specific objectives set out in We will continue to monitor our portfolio companies we invest in have operations our RI policy is that 3i will only invest in in relation to slavery and human trafficking and/or supply chains based outside businesses which are committed to: through our portfolio company reviews. northern Europe and North America, • respecting the human rights of including in countries which have a relatively Our Modern Slavery statement is available their workers; higher potential risk of slavery according to on our website. • maintaining safe and healthy working the GSI. These risks are assessed for each conditions for their employees and portfolio company in our detailed portfolio contractors; company reviews. • 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.

+ www.3i.com/sustainability/ modern-slavery/ 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 30

A responsible employer

The recruitment, development and retention Human rights 31 of a capable and diverse pool of talent is key to our Equal opportunities and diversity 32 success. We provide training and opportunities for Learning and development 36 career advancement, reward our employees fairly Working at 3i 38 and recognise the importance of supporting the Health and safety 42 wellbeing and satisfaction of our employees by providing a healthy working environment and work/life balance. With fewer than 240 employees, we benefit from a flat organisational structure, which facilitates a culture of an open communication. Direct feedback to senior managers is actively encouraged. We are a meritocracy and, as such, our employees are recruited, promoted and rewarded based on merit. 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 31 Human rights

Whilst 3i does not have, nor need, Due to the small number and diverse 3i has a suite of human resources a specific human rights policy, our functions of our employees, as well as the nature of our business, our employees policies and procedures covering areas policies are nevertheless consistent are not, in practice, unionised and do including recruitment, vetting and with internationally-recognised not engage in collective bargaining. performance management, family- human rights principles such as We do not procure services from nor friendly policies, equal opportunities invest in businesses which make use of and diversity, medical insurance and the UN Global Compact. slavery, human trafficking, forced labour, health checks, health and safety and compulsory labour or harmful child labour. flexible working, and appropriate We comply fully with applicable processes to monitor their application. human rights legislation in the Modern Slavery Act Summaries of a number of these policies can be found on our website. countries in which we operate, We published our statement on Modern for example covering areas such Slavery for the financial year ending + www.3i.com/sustainability/ 31 March 2020 on our website in September sustainability-policies as freedom of association and For more information the right to collective bargaining, 2020, and will update this statement in September 2021. 3i is committed to equal remuneration and protection ensuring that: against discrimination. • there is no slavery or human trafficking in any part of its business or supply chains; and • the companies in which it invests are also committed to ensuring that there is no slavery or human trafficking in any part of their businesses or supply chains. 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 32 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 To reinforce our commitment to equal employer and prohibits unfair establishes that all 3i employees (temporary contact with respect; opportunities, our line managers have and permanent), contract workers and job received training on unconscious bias, discrimination. In light of our small • we meet, as a minimum, our statutory applicants are treated fairly and are offered obligations regarding employment focused on raising awareness of the attitude workforce, we do not set specific equal opportunity in selection, training, legislation; and behaviours associated with a range of career development, promotion and important line manager activities, such as diversity targets, but we seek to • we communicate the Equal Opportunities remuneration. Specifically, we aim to performance management, team leadership and Diversity policy and responsibilities for create, through our culture and ensure that: and, where relevant, recruitment activity. policies, a work environment achieving fairness and equality; and • we have access to the widest labour • senior managers understand their During the year, no incidents of discrimination that helps to bring out the best market and secure the best employees responsibility for enforcing this policy and were reported. in our employees. for our needs; we all share responsibility for upholding it. A summary of our Equal Opportunities and • people are selected, promoted and Diversity policy is available on our website. Our workforce is very international treated equally, enabling us to maximise We cultivate an inclusive environment for and our 234 employees at the end potential to the benefit of individuals existing and prospective employees which Our Global Recruitment and Selection of March 2021 were of 21 different and 3i; respects, involves and leverages diverse policy sets out a fair, open, consistent and effective process to attract and select nationalities. This is very important • we have employment procedures and talent for greater organisational good. practices which do not discriminate on high calibre candidates who will maximise We have made reasonable progress in to our business and is a bedrock of grounds of age, marital status, gender, contribution to the business. achieving greater diversity within our our success. gender identity, gender reassignment, organisation but recognise that we sexual orientation, race, colour, nationality, can do better and strive to improve ethnic or national origin, religion or our performance on an ongoing basis. religious belief, disability, sensitive medical We consider diversity in all recruitment conditions, pregnancy or maternity, social processes and explore initiatives to address background, political opinion, trade union the perceived barriers to entry into our membership, or any other legally sector. However, we are a small organisation protected category; with relatively low turnover and recruitment volumes, which means that achieving better diversity will be a gradual process.

+ www.3i.com/sustainability + www.3i.com/sustainability A summary of our Equal Opportunities A summary of our Global Recruitment and Diversity policy and Selection policy 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 33 Equal opportunities and diversity continued

At 31 March 2021, 3i’s total of 234 employees was broken down as follows: Gender diversity 3i employees Achieving better gender diversity is The achievement of gender balance in our important to 3i and we believe we are industry will therefore need time, and will making reasonable progress in that respect, rely on grass-root education and advocacy within the constraints of being a small work, in addition to positive action taken organisation with modest staff turnover. by us and other investment firms on Of the 16 new hires we made during the recruitment, flexible working and parental year, two were female and 14 were male. policies. In addition to focusing on diversity in our recruitment processes, we also offer Gender diversity is an issue that the great flexibility at work and a broad range investment industry has long struggled of family-friendly policies (see pages with. Slow progress towards gender parity 38 and 39). has been largely attributed to: (i) a narrow candidate pool, as typical feeder industries We contribute to industry-wide work and 3i Group plc Directors1 (such as investment banking, accounting and advocacy on gender parity through a consulting) tend to hire graduates with more number of industry associations and by technical or numerate degrees, the majority being an official sponsor of Level 20. of whom are male; and (ii) a perception of poor work-life balance, both in the investment industry and feeder industries.

3i is an official sponsor of Level 20 Level 20 is a not for profit organisation dedicated to improving gender diversity in the European private equity industry. It is sponsored by over 80 private equity firms. Its ambition is for women to hold 20% of senior positions in this dynamic industry. Senior managers2 It works to empower women who already work within the industry, encourage new female talent to join and provide leadership teams with insight and best-practice solutions to help them address current gender imbalances within the industry and their firms. It has four key pillars of activity which contribute to its goals: • Mentoring and development • Networking and events • Outreach and advocacy • Research

Level 20’s latest study with the British Venture Capital Association, completed in March 2021, shows that 10% of senior investment roles are held by women compared to 6% in 2018. 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 Board members. This measure includes + www.level20.org those who have responsibility for planning, directing or controlling the activities of the Company or of a strategically significant part of the Company, or are directors of the undertakings included in the consolidation. 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 34 Equal opportunities and diversity continued

Ethnic diversity We have made good progress towards the As at 31 March 2021, more than one in eight fair representation of ethnic minorities within of 3i’s total UK employees were people 3i joined the #100BlackInterns initiative our organisation, although we recognise with a BAME background. In addition, the Through the #100BlackInterns initiative, leading players in the investment that more can be achieved. proportion of our UK-based employees with management industry have come together to address the chronic a BAME background in mid to higher salary The McGregor-Smith review on ‘Race in the under representation of black talent in this sector. Since its launch, the brackets also significantly exceeded the one Workplace’, published on 28 February 2017, programme has garnered extraordinary support with 200 investment in eight proportion. highlighted the under-employment and management companies offering internships in the Summer of 2021 under-promotion of people of Black and This year, Black Lives Matter (‘BLM’) brought to black students in the United Kingdom as a way of attracting a more Minority Ethnic (‘BAME’) backgrounds in ethnic diversity and inclusion firmly into diverse range of talent to their industry. UK businesses and made the case for more focus alongside gender diversity. The BLM Following the successful launch of #100BlackInterns, a new inclusive organisations. The review noted movement resonated with our staff, some of #10000BlackInterns initiative has now been designed to help further that, while one in eight of the UK working whom were motivated to take more positive transform the horizons and prospects of young black people in the age population in 2015 was from a BAME action. In recognition of this, we recently United Kingdom. This expanded programme will offer paid work background, BAME individuals made up joined the #100BlackInterns initiative, which experience across a wide range of sectors, providing training and only 10% of the workforce and held only 6% aims to help transform the horizons and development opportunities and creating a sustainable cycle of of top management positions. prospects of young black people in the mentorship and sponsorship for young black people. United Kingdom by offering paid work experience in the investment management industry, as well as world-class training + www.10000blackinterns.com and development. Two interns will join us through that scheme in the Summer of 2021. 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 35 Equal opportunities and diversity continued

Social diversity 3i has worked with Bright Network to 3i takes part in Career Ready’s We are committed to promoting social improve the diversity of its graduate intake mentoring programme diversity in the workforce. To improve socio- economic diversity within our organisation Set up in 2013 with a simple mission, Bright Network Since 2002, Career Ready has connected employers in 2018 we began a partnership with Bright partners with over 250 leading employers to connect its with schools and colleges to provide young people Network, to help us source more diverse members (generally young students in search of their first aged 14-18 with mentors, internships, masterclasses, candidates at graduate level. job opportunity) with employers across all sectors. It now and employer-led activities that prepare them for the has 400,000+ members from all backgrounds, of whom: world of work. In 2018, we began a partnership with • 80% are state educated Career Ready, a social mobility charity 3i takes part in the mentoring programme which based across the UK, that connects • 58% are female supports young people aged 16 to 18 who lack the employers with schools and colleges to • 15% are BAME opportunities, professional networks and confidence provide disadvantaged young people with to find their undiscovered talents. Bright Network has helped partner organisations find mentors, internships, masterclasses and thousands of their graduate hires. A number of 3i employees are volunteering as mentors employer-led activities that prepare them in the current academic year, meeting their mentees for for the world of work. an hour per month for up to 12 months. Face-to-face mentoring meetings have had to stop because of the social distancing measures imposed to mitigate the impact of Covid-19 in the UK, and all students mentored by 3i employees have been offered the option to be mentored through virtual meetings and phone calls.

+ www.brightnetwork.co.uk + www.careerready.org.uk For more information For more information 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 36 Learning and development

Advancing our strategic objectives We encourage employees to take During the year to 31 March 2021, We also organised periodic induction depends on our ability to attract, responsibility for their own development, we provided formal specialist training days to welcome new joiners, with working with their line managers to devise on areas and skills including: presentations from the Chief Executive retain and motivate smart people. personal development plans to support the • executive coaching; and other senior executives on different We are therefore committed to achievement of their individual aspirations, areas of the business. • financial modelling; providing our employees with the consistent with 3i’s objectives. • presentation and communication skills; As all of our offices have been closed in opportunities, experience and Given the specialised nature of many of accordance with local restrictions as a • speed reading; training to achieve their potential the roles in 3i, an emphasis is placed on result of the Covid-19 pandemic, we have • impact and gravitas; and grow their knowledge, skills work-based learning, with the provision of maintained the opportunity for learning and development opportunities supported by • virtual presentation training; development through the extensive use of and capabilities. appropriate training and mentoring. This is • diversity and inclusion workshops; webinars and virtual meetings. supplemented by formal courses conducted • mental health first aid; Key to personal development for all both internally and externally and usually employees is a formal annual appraisal with a multinational group drawn from • disability confidence; and process, where performance is measured across the countries in which 3i operates. • sustainability. against agreed objectives and against 3i’s values to inform decisions on remuneration, career development and future progression. Employees are encouraged to make use of an online facility to obtain 360-degree feedback as part of this process. All employees receive formal 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 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 37 Learning and development continued

Graduate scheme Our graduates benefit from best-in-class We launched our graduate recruitment technical training courses in corporate 23 scheme in 2015. We are committed to finance, valuation, financial modelling and accounting, coupled with practical graduate analysts joined recruit from a diverse pool of candidates us between 2015 and 2020 and the 23 graduates that have joined the business experience gained from working scheme to date have been drawn from alongside our investment professionals 10 different nationalities and 18 universities. and senior management teams. As a result, they acquire an excellent grounding in the The top performers on the programme investment world, as well as in strategy 2 are offered the opportunity to be fast- and finance, enjoying a great deal of graduate analysts tracked directly into our investment responsibility at an early stage. to join us in 2021 business. The programme involves rotations across our Private Equity and Several of the participants have joined 3i Infrastructure businesses, as well as permanently and are now integral members the opportunity to work with senior of our investment teams. 10 professionals in our Strategy, Investment nationalities Support and Investor Relations teams. 18 universities 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 38 Working at 3i

All of the benefits above are available We recognise the importance Maternity and adoption leave Paternity leave of supporting the wellbeing and to all full-time, part-time and fixed-term employees, with the exception of long-term satisfaction of our employees Time off • 52 weeks of maternity or Eligibility • Biological father of a child, sickness insurance, which is not available to and leave adoption leave, regardless or mother’s husband or by providing a healthy working fixed-term employees who instead receive a of length of service partner (including same sex), environment and work/life balance. cash equivalent. or spouse or partner Maternity • 100% of monthly basic salary (including same sex) Maternity and paternity leave pay for the first 18 weeks of the of the adopter Formal benefits In line with its objective of promoting maternity or adoption leave All employees from across our office equality and diversity, 3i’s policy is to • Statutory maternity or Length • Up to two consecutive of leave weeks’ leave locations enjoy a broad range of formal support employees before and after the adoption pay between benefits aligned with local custom and birth or adoption of a child. Maternity, week 18 and week 39 of the • Does not have to be taken practice and often enhanced relative to adoption and paternity leave is available maternity or adoption leave straight after birth or adoption, but must be the statutory minimum. Our HR team to all eligible full and part-time employees Other • Full entitlement to other completed within 56 days periodically reviews the policies and legal and our policies meet at least the statutory benefits benefits, including holiday of birth or adoption requirements of our international offices to minimum requirements. The summary entitlement, pension, death ensure they are competitive and compliant opposite refers to our UK policies, and disability benefits and Paternity • No changes to normal salary with local practices. In the UK, where c.65% however employees based outside of private medical insurance pay of our employees are based, the benefits the UK enjoy similar benefits, aligned • Shared parental leave for a Other • No changes to other benefits period of 50 weeks (after the we offer include: with local legislation. benefits first two weeks from birth • Shared parental leave for a • family-friendly benefits (including Shared parental leave or adoption) period of 50 weeks (after the maternity and paternity leave, adoption first two weeks from birth 3i has developed a clear and accessible leave, shared parental leave, parental Return • Right to return to the same job or adoption) Shared Parental Leave (‘SPL’) policy in the leave, bereavement and compassionate to work • Company open to requests UK for eligible mothers, fathers, partners leave); for flexible working, subject (including same sex) and adopters to • private medical insurance to business requirements choose how to share their time off work after and health checks; allowing it their child is born or placed for adoption. • life insurance; SPL at 3i is remunerated at 100% of salary • long-term sickness insurance; for the first six weeks; thereafter, statutory • pension contributions; shared parental pay will apply up to week 37 of the SPL. All other benefits remain in • flexible working, including remote place for the duration of the SPL. Employees working, flexible hours and job based outside the UK enjoy similar benefits, sharing; and aligned with local custom and legislation. • share ownership. Parental leave Most of our employees are entitled to parental leave in line with local legislation. 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 39 Working at 3i continued

Wellbeing at work Mental health and A supportive working environment Compulsory redundancies We adopt a holistic approach employee assistance In support of our core values, we aim 3i has not had a programme of compulsory to employee wellbeing. We place increasing importance on to establish and uphold high standards redundancies affecting a material number employees’ mental wellbeing. of behaviour and conduct. This means, of employees since 2012. Since then, we Flexible working amongst other things, that employees have had some redundancies associated Employees across our international network Over the past two years, most employees must treat colleagues and others with with the closure of our offices in Spain, are provided with the tools to work remotely have participated in workshops organised courtesy and respect. Harassment and Sweden and Singapore and other and can apply to work flexibly to manage in partnership with a specialist mental bullying of colleagues is unacceptable and occasional redundancies due to local personal or family commitments. Flexible health consultancy providing a basic is an issue that we take extremely seriously reorganisation. In no year since 2012 have working options include remote working, understanding of mental health, how to and are committed to providing further redundancies affected more than 5% of flexible hours and job sharing. develop and strengthen it, and how to guidance and support on. We arranged our employees. spot the early warning signs that indicate training on anti-bullying and harassment 3i’s London-based employees at risk of Physical health an individual may be struggling. Employees in previous years. 3i promotes the physical wellbeing of with people management responsibilities redundancy are offered comprehensive outplacement services with an external its employees. For example, in the UK have also received more in-depth training Grievance procedure we provide our employees with annual on mental health issues. We have trained service provider. This involves one-to-one All of 3i’s offices comply with local legislation medical insurance. All UK employees c.20 ‘mental health champions’ across the consulting with a dedicated career coach, governing grievance procedures. also qualify for annual health checks. business, to act as first points of contact for the opportunity to be part of a job search work team, access to a range of learning employees experiencing issues. The UK office has a formal Grievance In addition to this, we provide the services events, to an online career portal and to an policy, which applies to all full and part-time of a personal fitness and nutrition adviser All UK-based employees (c.65% of the office space with IT facilities and support. employees, which outlines the steps that for our London-based employees, workforce) have access to an Employee The support is provided for a period employees can take to raise complaints bookable free of charge for one-on-one Assistance Programme that offers free, ranging between two and six months. or concerns and have these addressed fitness, nutrition and broader wellness confidential telephone counselling on Some employees outside of London are by the Company. The UK Grievance advice sessions. He also hosts twice-weekly a range of personal and work related offered a similar service, based on local policy outlines the sequence of informal fitness and pilates classes that are free issues and problems, as well as face-to- custom and practice. and formal steps in the assessment and to employees. face counselling services. The service also provides legal and financial advice resolution of the grievance. 3i has not furloughed any employees, In August 2020, we relaunched our Cycle and other information and services nor made any employees redundant to Work scheme, which is available to all and is run by Health Assured, an as a result of the Covid-19 pandemic. UK-based employees. This programme independent external service provider. is described on page 50. Employees who are members of the UK private medical insurance, for which 3i covers premiums, have access to up to 10 sessions of psychological support without a requirement for General Practitioner referral. 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 40 Working at 3i continued

Employee wellbeing through Flexibility to manage Physical health ‘Business as unusual’ intranet hub the Covid-19 pandemic multiple commitments Throughout the pandemic we have ensured In May 2020, we launched our ‘Business Working from home Throughout this difficult period, our that our employees have the resources as unusual’ intranet hub, which centralises to continue to focus on their physical all resources that have been made available For much of the past year, 3i offices employees have been given flexibility to reconcile their work commitments with health. The bi-weekly fitness and nutrition to staff to work and cope in these unusual have been closed in accordance with consultations usually available to London- circumstances. These include resources local guidance and regulations and our other personal and family commitments such as childcare and elderly care, based employees have been offered to on mental and physical health, including employees have been working mainly from all employees virtually. We have added the recordings of mental health and home. We have facilitated this by providing which have posed additional challenges throughout the pandemic. other resources including exercise classes mindfulness webinars, exercise classes, employees with ergonomic guidance on targeted specifically at children. details on virtual social events to maintain remote working, IT equipment, remote Mental health employee engagement, information access to systems and online meeting and In recognition of the potential mental Graduates and new joiners on access to the office where applicable, collaboration tools. The transition to home health consequences of working remotely 2020 was a particularly challenging year IT guidance notes on remote working working was seamless, with the business through prolonged periods of lockdown, for our most recent graduate cohort to and more. benefiting from timely investments in IT we have engaged a specialist mental health begin their lives in the world of work. equipment and infrastructure and video and wellbeing consultancy to run a series As our graduate intakes are small, and conferencing software. of webinars and virtual workshops for all only three graduates joined us last year, We have gone to great efforts to keep all of staff on how to deal with issues like sharing we were able to offer in-person training our people informed and engaged through spaces at home, having limited opportunity in our London office in a safe and socially- regular updates from management and to go outdoors, general anxiety, working distanced environment. Since completing team leaders. This has been particularly at home with young children or while their training, our graduates have worked important for junior employees, who are home schooling older children, worrying predominantly from home. We have been missing the opportunities for ad-hoc about elderly relatives and living and careful to ensure that they have regular engagement with senior employees that working alone. We have also arranged a virtual meetings with their teams and office working provides. During periods number of webinars on mindfulness and mentors, have arranged opportunities for when offices re-opened, we ensured stress management run by an accredited virtual engagement with senior people that staff were able to work in a safe meditation coach. within the organisation, as well as a variety environment, following local legislation of virtual social events to ensure that they and guidance, and that attendance at the integrate within the organisation. All new office was entirely voluntary. In addition joiners have also been offered virtual to our direct employees, we employ a induction programmes and opportunities number of contractors for a range of to engage virtually with a broad range of services, including reception, cleaning employees from different departments. and maintenance services. Even though we have only used our offices sporadically since the pandemic first started, we have decided to maintain this third-party outsourced support, even during office closures. 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 41 Working at 3i continued

Remuneration Investment executives in the Private Employee engagement These important meetings provide the 3i’s employment policies are designed to Equity business line may also participate Honest communication with our staff is non-executive Directors with an insight into provide a competitive reward package in carried interest schemes, which allow important to us. We encourage a culture how our investment business operates and which will attract and retain high quality executives to share in future profits on of open communication between our into our culture. Employees also enjoy this staff, whilst ensuring that the relevant costs realised investments. Similarly, investment employees and senior management. opportunity to interact with the Board. executives in the Infrastructure business line remain at an appropriate level. The Chairman aims to visit all our major may participate in asset-linked and/or We benefit from being a small organisation, international offices on a two-year rolling 3i’s Remuneration policy is influenced by 3i’s fee-linked incentive arrangements. operating in a relatively flat structure financial and other performance conditions with few hierarchies. The members of cycle and engages with as many employees and other market practices in the countries Employees participate in local state or our Executive Committee have an open- as possible during these visits. company pension schemes as appropriate in which it operates. All employees receive door policy and know most employees by We promote and facilitate the ownership to local market practice. a base salary and are also eligible to be name. We also encourage feedback from of 3i shares among employees through considered for a performance-related employees to senior management through variable compensation and share annual variable incentive award. For Living wage more formal forums, including regular investment plans. We pride ourselves on the members of staff receiving higher levels 3i is an accredited London Living Wage team meetings and off-sites to discuss engagement and the sense of ownership of annual variable incentive awards, a Employer. This means that every member of our strategy, as well as through the annual we have fostered over the years, which are proportion of such awards is delivered in staff based in London, including contracted appraisal process. Managers throughout reflected in low employee turnover rates. 3i shares, vesting over a number of years. maintenance and reception teams, earns at 3i have a continuing responsibility to keep least a ‘living wage’ which is an hourly rate their teams informed of developments The Remuneration policy is approved by higher than the UK minimum wage and is and to communicate financial results and shareholders at least every three years set independently, updated annually and other matters of interest. Maintaining staff and is reviewed regularly by the Board’s based on the cost of living in London. engagement has gained new importance Remuneration Committee. while working remotely during the Covid-19 Outside of London, our overseas offices Where appropriate, employees are pandemic, and senior managers and team tend to employ only investment and eligible to participate in 3i share schemes leaders have made a particular effort to professional services staff, as well as to encourage their involvement in the keep staff informed through regular updates support staff, who are remunerated 88% performance of the business. and virtual meetings. above applicable minimum or living Participation wage requirements. The Board of Directors typically holds in UK SIP1 one of its meetings every year in one of our offices outside London. This provides an opportunity for non-executive Directors to meet the local teams, often 7% in a more informal setting. Unfortunately Unplanned employee this has not been possible since the start turnover rate of the Covid-19 pandemic, however the non-executive Directors have had other opportunities to engage with employees, for example by attending our semi-annual portfolio company reviews, which have been held virtually. 1 Proportion of UK-based employees who subscribe to a Share Incentive Plan available to UK employees only. 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 42 Health and safety

Our employees are engaged Our health and safety priorities Responsibilities and outcomes Our approach to health and safety in low-risk activities. As such, We ensure that: Our Property, IT and Procurement team, during the Covid-19 outbreak our occupational ill health and • a health and safety management system is which reports to the Group Finance Throughout the Covid-19 pandemic, all 3i accident rates remain low. established, documented, implemented, Director, manages health and safety. offices have been closed at various times in maintained and communicated The Head of Property, IT and Procurement accordance with local restrictions and our We are committed to the throughout the business. This system oversees the governance of health and employees have been working mainly from continual improvement of our covers all employees and contractors and safety within the Group, ensuring that home. We have facilitated this by providing health and safety management is reviewed periodically as appropriate, health and safety is considered in business employees with ergonomic guidance on decisions at all levels, and reports to the through regular performance and at least annually; remote working, IT equipment, remote Group Risk Committee. access to systems and online meeting and reviews, the testing of procedures, • health and safety risks which may arise throughout 3i’s global operations are We seek expert advice as necessary when collaboration tools. Some of our offices have open communication and identified, evaluated and controlled, to determining health and safety risks and been able to re-open for periods of time, and increasing awareness. prevent injury and ill health; the measures required to mitigate them. our employees have been given the option We have retained the services of System to attend the office during those periods. We operate in accordance with the Health • all health and safety incidents are reported Concepts, a specialist independent We have actively followed local legislation and Safety at Work etc Act 1974 and all and investigated promptly in order to consultancy, to provide competent health and guidance in order to protect the other applicable UK legislation. We adopt prevent a recurrence; and safety advice. System Concepts has health and safety of employees and those UK legislation and guidance globally, where • our global health and safety performance a consultant based on site at 3i’s London who may be affected by our activities. practical, as a minimum benchmark for is reviewed on a regular basis; and headquarters to provide practical support This includes carrying out a Covid-19 risk our health and safety standards, unless • 3i’s employees and contracted partners to the business. assessment and taking steps to reduce the country-specific obligations exceed participate actively in improving health risk of transmission as far as practical in our these requirements. and safety. During the year to 31 March 2021, we had no RIDDOR (‘Reporting of Injuries, Diseases workplaces, such as enhanced cleaning and We regularly review our global health and and Dangerous Occurrences Regulations hand hygiene measures, social distancing at safety standards and consult with our health 2013’) reportable incidents, and no work workstations, and managed occupancy. We and safety representatives across our offices related accidents or cases of work related ill have collaborated with building landlords to identify opportunities for improvement. health were reported. and other tenants to ensure there is a consistent approach with risk management across common areas and shared facilities of buildings in which we are tenants. We keep our Covid-19 risk assessment and control measures under regular review in light of any changes to legislation or guidance. We have also implemented a range of measures designed to improve the mental + www.3i.com/sustainability and physical health and wellbeing of our A summary of our Global Health and Safety employees while working from home. policy is available on our website These are described on pages 39 and 40. Pages 39-40 Wellbeing at work 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 43

A good corporate citizen

We strive to embed sustainable and Standards of conduct and behaviour 44 responsible business practices throughout Compliance 45 our organisation. We have robust policies Approach to taxation 48 and processes in place and actively Environment 49 promote the right values and culture Sustainable procurement 53 within our organisation. The corporate Community 55 Transparency and stakeholder values are approved by the Board and engagement 60 the Executive Committee sets the tone and leads by example. All employees are evaluated annually against our corporate values. 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 44 Standards of conduct and behaviour

3i’s required standards of conduct and behaviour are promoted and enforced through a comprehensive suite of policies and procedures which, together with our compliance manual and our values, constitute our code of conduct. All employees receive training on regulatory conduct rules and have a mandatory conduct objective against which they are assessed as part of their annual performance review. 3i employees must be familiar with, and understand, the obligations and restrictions that apply to them and must confirm in writing, on an annual basis, that they are in compliance. We review compliance with our established standards of conduct and behaviour periodically through a combination of the work of our Internal Audit and Compliance teams, overseen by the Board’s Audit and Compliance Committee, which also conducts an annual review of risk and internal control effectiveness. Our Compliance team reviews all compliance policies each year.

+ www.3i.com/investor-relations Download our Annual report 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 45 Compliance

As an investment manager and Compliance manual Anti-bribery policy is prohibited unless there is a clear and adviser, a number of 3i’s activities Our compliance manual applies to all 3i has an Anti-bribery policy which applies legitimate business purpose and, where they arise in connection with our investment require regulatory authorisation, employees. We provide below a brief to all those who work for, act on behalf of or description of some of the key areas represent 3i. 3i’s Anti-bribery policy requires activities, are designed to enhance the licensing and/or registration. covered by our compliance manual, high standards of ethical behaviour in all our quality of service to our clients. Several of 3i’s subsidiaries are given their relevance for our industry business interactions. Accordingly, we will Charitable donations in 3i’s name must therefore authorised and regulated and their associated risks. not offer, pay or accept bribes. In addition to be approved by the Chief Executive and by the Financial Conduct Authority detailed provisions, the policy also requires follow the principles set out in 3i’s Anti- Financial crime and market abuse the exercise of good judgement and bribery policy. and, where applicable, by Financial crime poses a reputational and common sense. relevant local non-UK authorities, legal risk and is an area of focus for Political donations 3i is not aware of any breaches of its Anti- regulators and law enforcement agencies 3i’s policy is not to make political including the US Securities and bribery policy by its employees. Exchange Commission and the globally. As a regulated business, 3i must contributions, whether to political maintain systems and controls for We are also committed to working only parties, political organisations or election Luxembourg Commission de countering these risks. 3i’s Financial Crime with third parties whose standards are candidates. In line with this policy, in the Surveillance du Secteur Financier, policy covers offences involving money substantively consistent with our own. This year to 31 March 2021, no donations were and must conduct their business laundering, terrorist financing, economic includes our intermediaries and advisers. made to political parties or organisations, sanctions, bribery and corruption, market As part of our approach to responsible or independent election candidates, and no in accordance with relevant abuse and fraud. 3i will not engage in and is investment, we expect businesses in which political expenditure was incurred. regulatory requirements. committed to preventing these offences. we invest to operate in compliance with all The compliance manual provides applicable laws and regulations including Conflicts employees with access to 3i’s policies applicable anti-bribery, anti-fraud and anti- Our Conflicts of Interest policy and and resources including: money laundering laws and regulations. associated procedures are designed to enable all relevant employees to identify • detailed anti-money laundering Hospitality, gifts and inducements actual or potential conflicts of interest and procedures; and 3i’s Hospitality, Gifts and Inducements to manage them appropriately, including • checklists to aid in the identification, policy provides that our employees may by reference to regulatory obligations. The verification and screening of customers not receive, pay or provide any inducement overriding principle is that we will treat our and potential customers. which would impair their or our duty to act customers fairly and, should conflicts of honestly, fairly and in accordance with the interest arise, we will manage them fairly in 3i’s Group Compliance team provides best interest of our customers. accordance with our conflict procedures. real-time advisory support to 3i’s business lines in the application of its anti-money In particular, employees must never offer We have a Conflicts Committee which laundering and screening policies and or receive hospitality or gifts if this may is able to consider actual and potential procedures. In addition, 3i has policies and improperly influence a business decision, conflicts as they arise, and also oversees 3i’s procedures to guide employees on: impair independence or judgement or general approach to conflict management. create a sense of obligation, create a • personal transactions; and conflict of interest or if there is a risk it • managing inside information. could be misconstrued or misinterpreted by others as a bribe. Offering or receiving + www.3i.com/sustainability gifts or hospitality to or from third parties Download our Anti-bribery policy 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 46 Compliance continued

Compliance training Data protection 3i maintains an Information Security Cyber resilience Our policies and procedures are 3i’s Data Protection policy reflects the Management System that: We focus on cyber resilience both in communicated and enforced through requirements of general European data • ensures that risks to the confidentiality, terms of 3i’s own systems and those of periodic training and auditing. Our protection legislation, supplemented or integrity and availability of information are its portfolio companies. compliance team develops various adapted as necessary for local regulatory managed to an acceptable level using a 3i’s cyber resilience is overseen by the e-learning modules, frequently followed by requirements. 3i is committed to protecting standard risk management framework; Group Risk Committee and managed on an assessment. These include: the personal data of its staff, customers • seeks to protect information from a day-to-day basis by the Group IT team. and contacts and using it in an appropriate • a general training module on 3i’s key accidental or intentional damage, loss, Non-executive governance is provided manner. We recognise the rights afforded policies and procedures, including: unauthorised disclosure or modification; by the Group Audit and Compliance to individuals by data protection legislation – anti-money laundering; • provides secure and reliable information Committee and operational governance is and that we must notify data subjects of the to enable 3i employees to conduct their provided by 3i’s Chief Information Security – anti-bribery; fact that we process their personal data and job effectively; and Officer, Group IT team and Internal Audit – personal transactions; the specific purposes for which we do so. • ensures compliance with legal and team (which carries out regular reviews – managing inside information; Our policy requires our employees to: statutory obligations. of 3i’s cyber resilience processes and – dealing with conflicts of interests; and • comply with the key data protection procedures). The 3i Cyber Security Review – hospitality and gifts; principles; Board continues to meet monthly to discuss cyber security issues and to review the cyber • treat personal data in accordance with 3i’s • financial crime; risk register and dashboard of relevant policies and procedures for safeguarding • anti-bribery; cyber key performance indicators. confidential information; and • preventing market abuse; • use personal data only for the purpose 3i runs a periodic cyber resilience • preventing tax evasion; and for which it has been provided and in e-learning course for all staff and a • regulatory conduct rules. the proper course of their duties as a continuous ‘phishing’ email programme to 3i employee. test and monitor 3i staff’s ‘click-rate’ and These e-learning modules are rolled out to promote increased practical awareness annually (save for the preventing tax evasion During the last financial year we did not of the risks associated with phishing course which is rolled out periodically). All receive any substantiated complaints from emails. 3i also tested its Cyber Security employees, including Executive Committee third parties or complaints by regulatory Incident Response Plan and updated its members, must complete these modules. bodies regarding the use and disclosure of overall business resilience strategy and All new joiners are required to complete all personal data. governance framework. six modules within two months of joining.

+ www.3i.com/sustainability Download our Data Protection policy 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 47 Compliance continued

In compliance with government restrictions Cyber resilience is one of the governance Whistle blowing Alternatively, all employees across our seven and advice in place to manage the Covid-19 topics reviewed at the six-monthly business Our whistle blowing policy forms an office locations may express and report their pandemic in the countries in which we reviews of 3i’s portfolio companies integral part of our culture of openness, concerns on a completely confidential and operate, the vast majority of 3i employees which are conducted as part of 3i’s transparency and fairness. Where any anonymous basis through an independent are at the time of writing working remotely. regular asset management and portfolio employee discovers information which they ‘hotline’ service provided by EthicsPoint, All remote workers have full access to monitoring programme. If any incidents believe shows malpractice or wrongdoing an independent, external party. 3i’s IT systems, which continue to be fully occur, appropriate information is shared within 3i, under most circumstances they will Our policies are clear that there should supported by the Group IT team and its throughout our investment teams to raise concerns with their line manager, who be no fear of reprisal or victimisation or managed service providers. promote our understanding of this evolving will pass this information to the appropriate harassment for whistle blowing. risk. We also ensure that developments In relation to its portfolio companies, Executive Committee member. and best practice are shared across the There were no incidents of whistle blowing 3i continues actively to promote cyber portfolio with relevant members of portfolio Should this route not be suitable, then in the year. resilience as a key component of the company management teams, including the employee may approach one of corporate governance programme through through formal forums such as our portfolio the following individuals who have been its representatives on the boards of its company CIO forum held in 2020. designated to provide impartial advice on portfolio companies. 3i continues to use an the appropriate course of action to follow: external firm of cyber security specialists to conduct non-intrusive reviews of the cyber Public policy • Director, Group Compliance; resilience of its key portfolio companies’ Although 3i will not participate directly in • Director, Internal Audit; or systems. The resulting reports are discussed party political activity, it may engage in • Group Legal Counsel with the management teams of the relevant policy debate on subjects of legitimate & Company Secretary. portfolio companies and specific actions concern to 3i, its staff and the communities agreed where appropriate. In some cases in which it operates. This is done principally where the cyber maturity of a new portfolio through industry representative bodies company is deemed to be in its early stages, such as the British Private Equity and we ensure that a cyber security review is Venture Capital Association and Invest carried out and that the necessary controls Europe, where we might contribute to and procedures are implemented across the formulation of their policy positions, the organisation. although from time to time we may engage directly with government and regulatory bodies on matters of particular and direct importance to 3i and its businesses. Lobbying must only be undertaken with the prior approval of a member of the Executive Committee and in a manner that is lawful and adheres to 3i’s values. 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 48 Approach to taxation

3i’s approach to taxation is built 3i has offices in seven countries across If the conditions are met, certain profits of Tax Strategy on the following principles: Europe, North America and Asia, and its the company (broadly, its capital profits) are In compliance with rules applicable to local entities pay taxes in these countries exempt from tax in the UK. For this reason, large UK businesses, 3i publishes its Tax • to act lawfully and with integrity, in respect of their local activities. approved investment trust companies Strategy on its website and this is kept are particularly suitable as investment under regular review. including complying with all Approved investment trust status vehicles, because their tax status means that investors’ investment returns do not suffer statutory obligations and 3i Group plc has operated in the UK as an double taxation, once at the level of the disclosure requirements; approved investment trust company since investment trust company itself and then its listing on the London Stock Exchange • to maintain open and again in the hands of the investors. In other in 1994. constructive relationships with words, investors in the Company do not pay UK HMRC and tax authorities An approved investment trust is a UK more tax than they would have incurred if investment company which is required to they had been able to invest directly in the worldwide; meet a number of conditions set out in UK Group’s underlying portfolio of investments. tax legislation in order to obtain, and • to maintain 3i’s approved The approved investment trust tax thereafter maintain, its approved status. investment trust status to rules have existed in the UK tax code These conditions include, among others: safeguard the long-term since the 1970s and were designed to • undertaking portfolio investment activity growth and value of 3i; and allow investment trust companies to that aims to spread investment risk; and perform a number of important economic • to work with industry bodies • that the company’s shares must be listed functions, including: worldwide to establish a fair on an approved exchange. • encouraging investments and savings system that sustains economic by providing individual and institutional investors with access to a professionally growth and enhances the managed and diversified portfolio; and reputation for the industry • to help facilitate economic growth by in which the Group operates. providing funding for the underlying businesses in which investment trust companies invest.

+ www.3i.com/sustainability Our Tax Strategy 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 49 Environment

3i has fewer than 240 employees Our strategy is to: worldwide and has a relatively • meet the requirements of applicable low environmental impact. environmental legislation; • minimise waste and maximise recycling; We operate from a network of seven • work with our landlords to ensure the offices across the world, with c.65% of our energy efficiency of our offices; employees based in our London office. All our offices are leased. • include environmental considerations in our procurement processes; We are committed to minimising our • measure our carbon footprint annually, environmental impact and to improving and publish the results in our Annual and our environmental performance wherever Sustainability reports; and possible. We have an Environmental Management System that is proportionate • report to two external publicly disclosed to the operational scale and environmental benchmarking indices and use our risk profile of our business. We use the performance in these benchmarking precautionary principle to manage indices to assess and improve future environmental risk for our business and our performance; we choose the CDP and portfolio proactively. the S&P Dow Jones Sustainability Index. While our direct environmental impact is small, our materiality assessment and associated stakeholder engagement identified that the integration of environmental issues into our investment processes is important. Our approach to responsible investment and to portfolio sustainability is described elsewhere in this report.

Page 11 A responsible investor 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 50 Environment continued

Minimising our direct We report annually in our CDP response on We undertook our last energy audit UK Cycle to Work Scheme environmental impact completed and planned energy efficiency in October 2019 as part of our ESOS In August 2020, we relaunched our Cycle projects and the resulting energy savings. assessment for our London office. We lease to Work scheme. This is a UK government While our direct operations have a modest We also continue to develop our data part of a building owned and managed by impact on the environment, we address our initiative introduced to encourage more collection system to allow us better to Landsec and have limited control over the people to commute to and from work emissions related to energy use, waste and quantify the savings made following the energy efficiency of the structure. However, travel proactively. by bicycle, enabling people to make implementation of these measures. the ESOS assessment identified a number healthier choices and reducing the UK’s Energy consumption of potential energy saving areas, which we carbon footprint. The initiative also allows Energy Savings Opportunity will implement over the next few years. To reduce our energy consumption, employees to make tax and National Scheme (‘ESOS’) compliance These potential improvements, which we have undertaken work to ensure all Insurance savings on the cost of a new were reported on in our 2020 sustainability lights, computers and other equipment ESOS is a mandatory energy assessment bicycle and safety accessories. These report, are relatively modest in scope. are powered off when not in use during scheme for organisations in the UK that savings are achieved via salary sacrifice extended periods of time, including at night meet the qualification criteria. The scheme which is managed by their employer. is administered by the UK Environment Travel and at weekends. Our London office was We rationalised our business travel through refurbished in FY2020. The refurbishment Agency. Organisations that qualify for Paper usage ESOS must carry out ESOS assessments a set of clear guidelines and approvals We use 100% recycled paper across included the installation of new LED light which we rigorously adhere to. In London, fittings, which can achieve 50% electrical every four years. These assessments our print solutions in our London and are audits of the energy used by these we work in partnership with our landlord to New York offices, and FSC approved energy efficiency improvement compared encourage employees to cycle to work by with the previous LED fittings, last longer, organisations’ buildings, industrial paper elsewhere. We have rolled out processes and transport to identify providing secure cycle racks, changing and Microsoft Office 365 throughout the and will continue to operate at 100% output shower facilities. until they fail, reducing waste over time. cost-effective energy saving measures. organisation. This facilitates the sharing Organisations must notify the Environment The majority of our meeting rooms and editing of documents online through Our London and Luxembourg offices, which Agency by a set deadline that they have are equipped with audiovisual and a variety of mobile devices, significantly accounted for approximately two-thirds complied with their ESOS obligations. teleconferencing solutions and employees reducing the need for printing documents. of our electricity consumption in FY2021, are encouraged to make use of these, procure electricity from 100% renewable reducing travel where appropriate. The video sources. Where we have control, we plan conferencing facilities in our London office to switch the energy supplier of our other were improved further as part of the office offices to renewable sources in due course. refurbishment in FY2020. As a result of the Covid-19 pandemic, business travel has been limited to very few exceptions since March 2020. In all cases, we have complied by the travel restrictions in place in the countries in which we operate. 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 51 Environment continued

Waste management Over the past few years we have Details of waste from 3i’s operations In our main location in London, we work with implemented a number of initiatives in our in the year to 31 March 2021 are set out our landlord, Landsec, to minimise waste London office to further reduce office waste: in the table below. from our operations, and help recycle as • we upgraded the waste recycling facilities much waste as possible. Non-recyclable to better align them with the recycling Waste disposal method Weight activity carried out by our landlord’s waste waste from our London office is sent to Recycled waste – mixed 17.8 tonnes an Energy from Waste site, where it is management supplier and carried out an incinerated to generate electricity. awareness campaign to encourage full use Recycled waste – paper 3.9 tonnes of these facilities; We recycle paper, plastic, glass, cans Combustion 2.1 tonnes • we made re-usable take-away coffee cups and organic waste and have put in place Anaerobic digestion 2.2 tonnes a recycling scheme for our redundant available to all employees. These cups can computer hardware. Our providers offer be used externally and returned to the Landfill – mixed 19.4 tonnes office for cleaning; on-site secure data destruction and Information provided by the waste disposal contractor. recycling services in compliance with the • we installed dispensers of filtered still and Waste Electric and Electronic Equipment sparkling water, eliminating the purchase Regulations 2013. of bottled water for staff and replacing an average of c.1,850 500ml bottles of sparkling water per month; • we introduced new compostable cups and lids for use in our coffee shop, replacing an average of c.2,700 non-recyclable cups and lids per month; and • we made metal cutlery available in our kitchen hubs to reduce the use of plastic cutlery. 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 52 Environment continued

Emissions performance Total energy consumption fell by 40% year-on-year, driven by the partial closure of our This section has been prepared in accordance with our regulatory obligation to report GHG offices due to Covid-19. emissions pursuant to the Companies (Directors’ Report) and Limited Liability Partnerships We quantify and report our organisational GHG emissions in alignment with the World (Energy and Carbon Report) Regulations 2018 which implement the UK Government’s Resources Institute’s Greenhouse Gas Protocol Corporate Accounting and Reporting policy on Streamlined Energy and Carbon Reporting. During the year to 31 March 2021, our Standard and in alignment with the Scope 2 Guidance. We consolidate our organisational measured Scope 1, 2 (location-based) and 3 emissions totalled 2,926 tCO2e. This comprised: boundary according to the operational control approach, which includes all our offices. We have adopted a materiality threshold of 5% for GHG reporting purposes. The GHG sources FY2021 FY20201 that constituted our operational boundary for the year to 31 March 2021 are: Rest Rest • Scope 1: natural gas combustion within boilers and fuel combustion within Scope UK of world Total UK of world Total leased vehicles; 1 104.4 13.3 117.7 122.6 28.0 150.5 • Scope 2: purchased electricity and heat consumption for our own use; and 2 – location-based 126.0 133.3 259.3 327.8 125.4 453.2 • Scope 3: purchased goods and services, fuel-and-energy related activities, waste 2 – market-based – 142.4 142.4 – 129.3 129.3 generated in operations, business travel, employee commuting and home working. Scope 3 n/a n/a 2,666.2 n/a n/a 5,916.9 In some cases, where data is missing, values have been estimated using either extrapolation Total Scope 1, 2 (location-based) & 3 n/a n/a 3,043.2 n/a n/a 6,520.7 of available data or data from the previous year as a proxy. Total Scope 1, 2 (market-based) & 3 n/a n/a 2,926.3 n/a n/a 6,196.8 The Scope 2 Guidance requires that we quantify and report Scope 2 emissions according 1 Some emissions have been updated compared to the disclosures in our Annual report 2020, where estimated data has been replaced by reported data. to two different methodologies (“dual reporting”): (i) the location-based method, using This is equivalent to 12.8 tCO e per full time equivalent employee, based on an average of average emissions factors for the country in which the reported operations take place; 2 and (ii) the market-based method, which uses the actual emissions factors of the energy 229 employees (2020: 25.6 tCO2e; 242 employees). Overall, our Scope 1, 2 (market-based) and 3 emissions decreased by 61%, driven principally by a reduction in business travel due procured. to Covid-19 travel restrictions. Whilst we have a relatively low footprint on the environment, we are committed to reducing This year, in light of the exceptional circumstances we experienced, we chose to include it further. As noted earlier, in our London and Luxembourg offices, which accounted for emissions related to home working in our Scope 3 calculation. These were calculated by over 67% of our overall electricity consumption in FY2021, we purchase our electricity from estimating the energy consumed by employees on using office equipment, lighting, and 100% renewable sources. Although the options for energy efficiency improvements for our heating while working from home, using national benchmarks where available. offices are limited, we are assessing whether it is possible to switch to renewable tariffs in our remaining offices where we do not currently purchase all of our electricity from 100% During the year to 31 March 2021, our total fuel and electricity consumption totalled renewable sources. 1,446 MWh, of which 77% was consumed in the UK. The split between fuel and electricity consumption is displayed below. Third-party verification Our emissions have been verified to a reasonable level of assurance by Carbon Intelligence FY2021 FY2020 according to the ISO 14064-3 standard. Energy consumption Rest of Rest of (MWh) UK world Total UK world Total Electricity 540.3 278.3 818.6 1,282.5 310.5 1,593.0 Fuel1 567.7 60.1 627.8 666.6 139.3 805.9

1 Natural gas and transportation fuels (petrol and diesel). 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 53 Sustainable procurement

3i’s supply chain consists 3i’s principal facilities management supplier, We monitor ESG issues with key suppliers Due diligence on predominantly of the procurement Sodexo, holds an ISO 14001 certification and ask for progress reports on a regular proposed suppliers and, through its Better Tomorrow 2025 Plan, basis. Where appropriate, we ask potential of professional services from blue is reducing the environmental impact of the suppliers to provide a statement Our Procurement policy requires that chip organisations in the markets activities it undertakes on behalf of clients detailing the existence of any policies an appropriate level of due diligence be such as 3i. or commitments with regards to the conducted on prospective suppliers before in which we operate (mainly they are appointed or any expenditure is Europe and North America), and following areas. This includes the details Our approach to procurement of any accreditation of participation in committed. The nature of the due diligence which therefore are at lower risk sustainability indices or associations: conducted is to be determined on a We have developed policies and procedures of exposure to ESG-related issues. case-by-case basis by our procurement in relation to services received from third- • workplace – labour rights, equal team, however, as a general rule, our party providers. As far as possible, we opportunities, occupational health and Procurement policy suggests that: will only work with suppliers who support safety; • integrity due diligence must be conducted our aim to source products and services • environment – green policies and on prospective suppliers that are responsibly. We aim to have a collaborative practices; considered to be at a high risk of bribery relationship with our service providers and, • marketplace – advertising and marketing and corruption; wherever possible, will work with them ethics; and when problems or issues arise to help • due diligence on information/data security them meet our requirements. • community – charities, participation in (including cyber security) must be local communities. conducted if confidential 3i data will be Suppliers are also asked to confirm that they processed or held by the supplier; have adequate anti-bribery and corruption • due diligence on human rights policies, controls in place, in line with applicable equal opportunity policies and legislation and that they comply with the employment policies, with particular focus Modern Slavery Act, where relevant. on the provider’s commitments on the use of child or forced labour in their operations or supply chain must be conducted where Group procurement deems there is a risk of non-conformity with 3i’s approach; and • a thorough evaluation of business resilience must be undertaken that will include the financial performance of the supplier, insurance cover, evidence of accreditation, of contingency planning and third-party dependencies.

+ www.3i.com/sustainability Download a summary of our Procurement policy 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 54 Sustainable procurement continued

Human rights and forced The geographical analysis of our supplier Payment practices reporting Supplier spend by type of supplier labour in 3i’s supply chain spend shows that (i) the top nine countries Reporting on Payment Practices and (FY2020) represented 98% of total 3i relevant supplier We published on our website our slavery Performance Regulations came into roion spend in FY2020 and (ii) 95% of total 3i force in the UK for all reporting periods and human trafficking statement in relation dir nd relevant supplier spend was situated in conutnt beginning 1 April 2017. The regulations to FY2020 in September 2020 and will Europe and North America. The highest update this statement for FY2021 in ri cot require large companies and LLPs to report nd inurnc GSI-ranking geography is India (53rd) which on their payment practices, policies and September 2021. outr nd I only accounted for c3% of total supplier performance on a half-yearly basis. The r A large majority of 3i’s suppliers are spend. 84% of the relevant supplier spend reports are published on a Government professional advisers and consultants rc in India related to one supplier (Infosys) cruitnt website and are publicly available. 3i is fully engaged to advise 3i on potential which provided outsourced financial and tr compliant with these regulations. investments, divestments, and other matters accounting services from its centre in Bangalore. Infosys is a NYSE listed global in relation to our portfolio and various Prompt Payment Code corporate matters. Other significant items consulting and IT services company and in our overall procurement spend were a signatory to the United Nations Global 3i is a signatory to the Prompt rent, premises costs and insurance, as well Compact. We consider Infosys as a lower Payment Code. The Code encourages as computers and IT. We consider these Supplier spend by geography risk supplier in terms of modern slavery. and promotes best practice between categories to be relatively low risks in terms (FY2020) organisations and their suppliers. 3i continues to include specific Modern Signatories to the Code commit to paying of modern slavery. The chart below shows Slavery Act wording in its standard request rn their suppliers within clearly defined terms, the breakdown of 3i’s total relevant spend for proposal document which it issues to and to ensuring there is proper process with suppliers in FY2020 by reference to the potential suppliers when it procures the type of supplier and by geography. rnc for dealing with any issues that may arise. Indi supply of goods and services. In addition, Budget holders are reminded of their trnd 3i continues to use a supplier relationship responsibility under the Code at least Irnd management tool to help monitor the annually when the budget is approved. uour performance of certain of its existing in significant suppliers. Specific Modern tr Slavery Act language has been included in this tool to ensure that Modern Slavery Act issues are addressed regularly as part of 3i’s ongoing monitoring of these particular suppliers.

+ www.3i.com/sustainability Download our Modern Slavery statement 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 55 Community

We focus our charitable activities In May 2020, we set up an additional Ordinary charitable giving principally on the disadvantaged, £5 million charitable fund to help alleviate the Our charity budget for the financial year to impact of Covid-19. on the elderly, on young people 31 March 2021 increased by approximately and on education. Our portfolio companies have also been 40% to respond to the additional demands doing their part in supporting their for support arising as a result of the pandemic. Most of the charities that we support have local communities and, as majority or The charities we partner with are supported played a key role in protecting a range of significant majority shareholders, we have on the basis of their effectiveness and different vulnerable groups from the worst supported this. impact. Our ordinary charitable giving for the impacts of the pandemic and of living Importantly, some of our portfolio year to 31 March 2021 totalled £800,000. This under lockdown. In addition to supporting companies, such as SeniSure and Ionisos, includes supporting our nine charity partners, our existing charity partners, we funded a have been able to contribute directly to the matching staff fundraising, making a number number of Covid-19 focused donations to immunisation effort. of one-off donations and promoting the local charities chosen by our overseas offices Give-As-You-Earn scheme in the UK, during the year and matched our employees’ Pages 57-59 which is administered by the Charities Aid charitable donations during the months of Read more about ordinary charitable giving Foundation, and through which 3i matched April and May 2020. We also encouraged Page 56 £67,000 of employee donations. our employees to volunteer their time with Read more about our Covid-19 charitable fund nationally-sponsored schemes or with local In addition, during the year our London- charities to provide assistance to vulnerable based staff arranged a gift collection for groups throughout this difficult period. Community Links’ Christmas Toy Appeal and Foodbank Appeal. 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 56 Community continued

Our Covid-19 charitable fund An internal Charity Committee was Donations by theme In May 2020 3i announced it had set up a established in June 2020 to identify guiding £5 million Covid-19 charitable fund to help principles for the allocation of the fund, alleviate the impact of the pandemic. agree its geographic split, research and duction diligence charities and identify a final idntd The overarching theme of the fund is to list of charities to receive 3i’s funding. couniti alleviate poverty and all its consequences, Recommendations were made to the Chief ood n by supporting charities particularly affected Executive. Members of the Committee were iiit nt t by the pandemic, focusing on the most drawn from across our international offices dr cr vulnerable communities in countries where and business functions. There was great otic ionc 3i and its portfolio companies operate. engagement among staff in this initiative, Within this, our donations have targeted a and many employees dedicated a significant number of areas, including food provision, amount of their personal time to research education, domestic violence, advancement appropriate charities and prepare cases of minorities and disadvantaged groups, for the Committee to consider. Beyond the Donations by geography community development and mental Charity Committee, over 40 employees also health. Some funding was provided to offer nominated charities, some of which they immediate relief to communities, with other were personally involved with. donations being made to support 12 – rn 24 month recovery programmes as we start The fund disbursed £4.3 million in the Indi to exit the pandemic. financial year to 31 March 2021 across c.90 charities, as shown in the charts opposite. rnc trnd The remainder of the fund is expected to be tr committed or disbursed by 31 May 2021. + www.3i.com/sustainability/corporate- citizenship/covid-19-charitable-fund 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 57 Community continued

3i supports the following charities through its ordinary charitable giving activities

Community Links Historic Royal Palaces National Youth Orchestra of Great Britain Community Links is a social action charity which finds Historic Royal Palaces is an independent charity that The National Youth Orchestra (‘NYO’) of Great Britain new solutions to old problems and delivers them with looks after the Tower of London, Hampton Court is among the world’s leading orchestras composed the whole community. Palace, the Banqueting House, Kensington Palace, exclusively of teenagers. Kew Palace and Hillsborough Castle and Gardens. Its Based in Newham, one of the most deprived boroughs As well as working together in the orchestra, the cause is, “To help everyone explore the story of how in London, Community Links works across Advice, teenagers are also encouraged to inspire other young monarchs and people have shaped society, in some of Digital Skills, Youth & Employment, Health and Policy musicians through the NYO Inspire programme the greatest palaces ever built.” & Learning to take a holistic approach to communities which provides free opportunities to Grade 6-8 that are ready for everything. During the past year, In support of this, the charity runs a public engagement teenage musicians to develop their orchestral playing as a result of the pandemic Community Links saw programme to enable adults, families, young people through in-depth workshops, rehearsals and public

an unprecedented rise in demand for its services andHistoric children Royal Places to participate – Descriptors in Large immersive, Use high quality performances. Due to the lockdowns caused by and had to quickly adapt to providing a number of activitiesFormat andScaleable programmes onsite, offsite and online, Covid-19, NYO set about creating the largest digital advice services remotely and online as well as offering withMinimum 3i helping Size 75mm to fundWide the Learning and Engagement music community that it could, involving musicians Below 75mm the small use version should be used additional support, such as an emergency food Programme.Rules ScaleWith with HRP’s unit sites closed or partially closed from as far afield as America and China, and mobilised support service. during a large part of the year, the charity adapted its musicians to create large-scale digital projects. The its public engagement programme to carry out as NYO and NYO Inspire musicians also joined in solidarity many activities as possible online and through social for racial equality, taking a deep dive into the music of media, including offering school resources for children black composers during the Digital Summer Residency. online, creating blogs on historical topics, compiling playlists of some of their past exhibitions and events with behind-the-scenes talks from the people who put them together and hosting online Curator talks.

+ www.community-links.org + www.hrp.org.uk + www.nyo.org.uk For more information For more information For more information 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 58 Community continued

The Passage Snowdon Trust Re-engage Independent Age The Passage, based near our London Snowdon Trust provides grants Re-engage is a national charity Independent Age exists to make the office in Westminster, is a homelessness to physically disabled and sensory dedicated to tackling loneliness UK a better place to grow old for charity whose services have a high impaired students studying in the and social isolation amongst older everyone. impact on the local community. UK, in further or higher education people living in the UK. The charity aims to understand or training towards employment. 3i supports The Passage’s Client Its mission is to empower older people to the issues faced by elderly people, Development team which provides These grants help to cover the additional make new social connections and break campaign for change, and provide clients with life skills and helps them to costs that students incur as a result out of the cycle of isolation. Supported by support people can rely on, from end their homelessness by returning of their disability and which available a network of volunteers, the charity works clear and simple guides on benefits to work. Support includes computer statutory funding does not cover. within local communities organising and entitlements, to providing a free training, literacy and numeracy classes, Although some students chose to regular social gatherings for older helpline and a network of volunteers help with CVs and finding jobs, and defer their studies due to Covid-19, the people, aged 75 and over, who live alone. helping beat loneliness and isolation financial and welfare rights advice. The charity supported those students who As a lot of Re-engage’s support for older across the UK. pandemic completely changed the decided to proceed and approved 66 people was carried out face-to-face, the In response to the pandemic, landscape for The Passage, meaning new Snowdon grants for the 2020/2021 charity had to pivot its service model Independent Age quickly set up the that the charity had to rapidly adapt its academic year, totalling £200,000. quickly when the pandemic struck. As a ‘Independent Age Grants Fund’. The service model to provide an emergency In addition, the Trustees approved result, it set up Call Companions which Fund’s aim was to sustain small- and frontline response and keep its clients 12 Snowdon Masters Scholarships is a telephone befriending service that medium-sized charities supporting safe from Covid-19 by helping them into for students showing amazing future matches older and younger people, older people through the crisis, whilst suitable temporary accommodation potential. ideally with similar interests. Since April taking the opportunity to build a new as quickly as possible. In addition, 2020, Re-engage has signed up almost ecosystem of support for vulnerable some staff were redeployed to provide 1,300 older people to this new service. older people across the UK. The Grants floating support for clients in their Fund supported 214 organisations, new accommodation; kitchen staff allocating c.£2.5 million. and volunteers set-up a mobile food service delivering hot meals to clients in The charity also continued its temporary accommodation; food parcels campaigning work focused on Pension were provided to new clients presenting Credit, the impact of Covid-19 on older at the Resource Centre; and the charity people, and a call for supermarkets delivered clean clothing to clients in to remove unfair delivery charges and emergency accommodation with no minimum spends from priority delivery access to laundry facilities. slots for people who are shielding.

+ www.passage.org.uk + www.snowdontrust.org + www.reengage.org.uk + wwww.independentage.org For more information For more information For more information For more information 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 59 Community continued

Church Homeless Trust shelters at Christmas time. The charity Royal British Legion Industries A number of nutritionally balanced runs Street Buddies, a peer-led street food parcels were delivered across the Church Homeless Trust funds specific RBLI is a national charity supporting outreach team which helps entrenched Village to enable vulnerable veterans support or items that an individual the Armed Forces, people with rough sleepers off the street. The past with physical disabilities and mental needs throughout their journey from disabilities and people who are year was very challenging for Church health issues to follow guidance and being homeless to establishing a home unemployed. They improve lives every Homeless Trust and its beneficiaries not take unnecessary health risks and playing a part in society. day by inspiring those they help and and demand for their services has and laptops were provided to certain supporting them to find work and lead Resettlement grants are given increased steadily since March 2020 residents enabling them to connect independent lives. for items for which there is no with the charity hearing many stories with the outside world and regularly government funding available and of people becoming homeless due As the pandemic struck in March 2020, speak to family members. This access group activities supported include to the pandemic. However, Church RBLI had to re-focus and change its also enabled the veterans to take part cooking, expressive arts, digital Homeless Trust continued to work with way of operating to ensure the charity in organised fitness sessions with British inclusion and health and fitness. its partners to reach homeless people could continue to provide support to its Military Fitness instructors and join RBLI’s Church Homeless Trust also works and provide them with the support they vulnerable veteran community. Covid employability coaching, LifeWorks. with partners across England to reach need, including focusing in particular safe plans were created to ensure the homeless people who need help and on areas such as health and wellness residents could still use communal offers accommodation in winter night and digital access and inclusion due areas and socialise at a safe distance to the pandemic. to help prevent isolation; a Health & Wellbeing suite was set up to support the residents’ mental wellbeing and physical health, offering a treadmill, rowing machine and static bicycle as well as free weights and resistance bands to assist with mobility training for veterans with physical disabilities.

+ www.churchhomelesstrust.org.uk + www.rbli.co.uk For more information For more information 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 60 Transparency and stakeholder engagement

The Board recognises that Stakeholder Material issues Communication effective communication is integral Employees • Attracting and retaining talent • Regular team meetings and off-sites hosted by executive management to building stakeholder value. • Fostering a supportive and team leaders and periodic engagement with the Board As a publicly listed company, we operate working environment • Regular all-staff updates by email within a framework of formal legal • Remuneration • Comprehensive staff portal and regulatory disclosure requirements, • Remuneration policy and performance management system as well as meeting the high expectations for transparency of our shareholders, Shareholders • Financial performance • Annual General Meeting fund investors, employees and the media. and potential and returns • Two investor presentations and regular capital markets seminars investors We are committed to communicating • Awareness of strategy • Annual and half-yearly reports and quarterly performance updates both our financial and non-financial and implementation • Sustainability report performance in a clear, open and • Access to Executive • Comprehensive Investor Relations website comprehensive manner and in a way which Management addresses the issues identified as material • Regular meetings with executive management and Investor Relations team • Transparency to our key stakeholders. • Chairman and SID available for meetings • ESG performance Our objective is to present a balanced • Regular email and telephone communications and understandable assessment • CDP and DJSI submissions of our position, highlighting the key risks to which we are exposed in Fund investors • Financial performance • Quarterly reporting produced in line with the Invest Europe Investor Reporting our day-to-day activities. and returns Guidelines and including ESG performance updates The Group Communications and • Awareness of strategy • Annual investor meetings Investor Relations teams have day-to-day and implementation • Fund Advisory Board meetings held on an annual or semi-annual basis as required responsibility for communications with • Access to key investment • Regular and ad hoc meetings and telephone calls with Fund Investor Relations key stakeholders and, together with the professionals team and relevant investment professionals Group Secretarial team, they ensure that • Transparency 3i meets all relevant disclosure obligations. • Regular email communications • ESG performance • Access to a web-based investor portal used to host and distribute • Alignment with 3i investor correspondence • UNPRI submission

Investee • Support for strategy • Engagement with investee companies formally at board level and informally companies and implementation on an ongoing basis • Alignment with 3i • Regular chairman and CEO forums to share best practice and experience as key shareholder • Executive remuneration 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 61 Transparency and stakeholder engagement continued

Stakeholder Material issues Communication

Equity and • Financial performance and returns • Two investor presentations and regular capital markets seminars debt analysts • ESG performance • Annual and half-yearly reports and quarterly performance updates • Transparency • Comprehensive Investor Relations website • Access to Executive Management • Regular communications with Investor Relations and Treasury teams • Annual General Meeting

Rating • Financial performance • Annual meetings with the Group Finance Director and Treasury team agencies and returns • Annual and half-yearly reports and quarterly performance updates • Balance sheet strength • Comprehensive Investor Relations website • Tailored presentations

Media • Transparency and • Open and transparent approach with the media clear communication • Proactive press programmes for executive management • Access to management • Press releases on material developments including investments and realisations and product development • Comprehensive website hosting press releases and other resources such as videos, factsheets and case studies • Use of LinkedIn, Twitter and YouTube social media channels to disseminate 3i and portfolio news

Government • Compliance with relevant • Active participation in policy forums and regulatory rules and regulations • Response to engagement on regulatory matters bodies • Engagement on relevant issues • Membership of industry consultative bodies, eg British Venture Capital and regulatory developments Association and Invest Europe

Suppliers • Conduct and standards • Central procurement team of employment • Standardised procedures • Service provision • Procurement policy available on our website • Management of costs • Supplier relationship management tool and regular meetings

Communities • Positive contribution to the • Environmental Management System proportionate to the operational scale communities and society and environmental risk profile of the business in which we operate • Comprehensive Responsible Investment policy • Minimise adverse • Charitable activities focused on the disadvantaged, young people and education environmental impact • Give-as-you earn scheme and employee donations matching 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 62 Transparency and stakeholder engagement continued

The Walker Review 3i also endorsed the voluntary code which In 2007, in response to the growing debate resulted in the ‘Guidelines for Disclosure about the role of private equity in the UK, and Transparency in Private Equity’, which the British Venture Capital Association was published in November 2007. Sir (‘BVCA’) suggested a review to examine David Walker’s recommendations with ways in which levels of disclosure in respect to reporting for private equity firms companies backed by the UK private and their relevant portfolio companies equity industry could be improved. were on a ‘comply or explain’ basis. An overview of the guidelines together with The review was led by Sir David Walker, the 13th annual report of the Private who consulted widely and invited Equity Reporting Group (which monitors representations from within the private and reports on the UK private equity equity industry, other financial institutions, industry’s conformity with the guidelines) pension funds and the investment at December 2020 can be found at community, as well as more broadly with www.privateequityreportinggroup.co.uk portfolio companies, trade unions and employer representatives. 3i actively The only 3i portfolio companies which met supported the review, with involvement the criteria set out in the guidelines and from the Chairman. were included in the 13th annual report for the year to 31 December 2020 were Infinis, held within 3i Infrastructure plc, and East Surrey Pipelines, held within 3i Managed Infrastructure Acquisitions LP, both of which are managed by 3i’s Infrastructure business. 3i is represented on the Private Equity Reporting Group through one of its employees.

+ www.privateequityreportinggroup.co.uk 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 63

GRI and SASB

Due to increasing requests from GRI 64 stakeholders for relevant and comparable SASB 68 sustainability information, we have chosen to report in accordance with the Global Reporting Initiative (‘GRI’) core option and Sustainability Accounting Standards Board (‘SASB’) standards. 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 64 GRI

As part of our assessment, we sent For a number of years we have Themes Material issues been reporting according to the out surveys to understand the level of stakeholder concern regarding a wide Environmental • Environmental reporting GRI core option and are doing so range of sustainability issues (based on our • Business risks and opportunities again this year. review of current sustainability reporting requirements) and interviewed a number • Engagement with supply chain on climate change In early 2021 we conducted a materiality of key internal and external stakeholders. Social • Non discrimination assessment to identify the GRI indicators This analysis, combined with the analysis of that are relevant to us and our stakeholders our ordinary-course engagement, allowed • Equality, diversity and inclusion and that we should report on. As part us to select a number of material GRI • Employee benefits of this assessment, we reviewed the sustainability indicators and disclosures • Employee training and development reporting requirements of voluntary against which we report. We will aim to • Health, safety and wellbeing sustainability reporting initiatives such as renew our materiality assessment every five the CDP, FTSE4Good and the Dow Jones years, or sooner in the event of a material • Charitable donations Sustainability Index, and engaged with change in strategy. • Supplier screening key internal and external stakeholders to understand which sustainability issues The themes identified as material to our Economic/ • Economic performance stakeholders are as indicated in the table are of concern to them. Our stakeholder governance • Corporate governance engagement focused on our employees, opposite. existing and potential shareholders, existing • Risk management and potential fund investors, portfolio • Business ethics companies, policymakers and regulators. • Anti-bribery and corruption • Data protection • Cyber security • Financial risks of climate change • Tax transparency • Governance of portfolio companies • Incorporation of ESG considerations in our investment and asset management approach • Engagement with portfolio companies on ESG issues • ESG risks and opportunities for the portfolio 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 65 GRI content index

GRI standard title Disclosure Fully reported/ number Disclosure title Page number other comment General – organisational profile 102-1 Name of the organisation SR: 02; AR: IFC Fully reported 102-2 Activities, brands, products, and services SR: 04; AR: 04-05 and 12-13 Fully reported 102-3 Location of headquarters SR: 04 Fully reported 102-4 Location of operations SR: 04 Fully reported 102-5 Ownership and legal form SR: 04; AR: 119-120 Fully reported 102-6 Markets served SR: 04; AR: 04-05 Fully reported 102-7 Scale of the organisation SR: 04; AR: 04-05 Fully reported 102-8 Information on employees and other workers SR: 04 and 30-41; AR: 82-84 Fully reported 102-9 Supply chain SR: 53-54 Fully reported 102-10 Significant changes to the organisation and supply chain SR: 53-54 Fully reported 102-11 Precautionary principle approach SR: 49 Fully reported 102-12 External initiatives SR: 10; AR: 73-75 Fully reported 102-13 Membership of associations SR: 10 and 47 Fully reported General – strategy 102-14 Statement from senior decision maker SR: 05-07 Fully reported 102-15 Key impacts, risks and opportunities SR: 18-27 Fully reported General – ethics and integrity 102-16 Values, principles, standards, and norms of behaviour SR: 08; AR: 50 Fully reported General – governance 102-18 Governance structure SR: 09; AR: 81-124 Fully reported 102-20 Executive-level responsibility for economic, environmental SR: 09; 15-16 Fully reported and social topics 102-21 Consulting stakeholders on economic, environmental SR: 63; AR76-78 Fully reported and social topics 102-22 Composition of the highest governance body and its committees AR: 81-124 Fully reported 102-23 Chair of the highest governance body AR: 81-82 Fully reported 102-24 Nominating and selecting the highest governance body AR: 91-93 Fully reported 102-25 Conflicts of interest SR: 45; AR: 121 Fully reported 102-26 Role of highest governance body in setting purpose, values SR: 08 Fully reported and strategy 102-27 Collective knowledge of highest governance body AR: 90 Fully reported 102-28 Evaluating the highest governance body’s performance AR: 90 Fully reported 102-35 Remuneration policies AR: 107-121 Fully reported 102-36 Process for determining remuneration AR: 107-121 Fully reported 102-37 Stakeholders’ involvement in remuneration AR: 107-121 Fully reported

SR: 3i Group Sustainability report 2021 (this report) AR: 3i Group Annual Report 2021 (http://www.3i.com/investor-relations/report-library/2021) 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 66 GRI content index continued

GRI standard title Disclosure Fully reported/ number Disclosure title Page number other comment General – stakeholder engagement 102-40 List of stakeholder groups SR: 60-61; AR: 77-78 Fully reported 102-41 Collective bargaining agreements SR: 31 Fully reported 102-42 Identifying and selecting stakeholders SR: 60-61 and 64; AR: 76-78 Fully reported 102-43 Approach to stakeholder engagement SR: 60-61; AR: 76-78 Fully reported 102-44 Key topics and concerns raised SR: 64 Fully reported General – reporting practice 102-45 Entities included in the consolidated financial statements AR: 167-170 Fully reported 102-46 Defining report content and topic Boundaries SR: 64 Fully reported 102-47 List of material topics SR: 64 Fully reported 102-48 Restatements of information SR: 52 Fully reported 102-49 Changes in reporting SR: 52 Fully reported 102-50 Reporting period SR: 02 Fully reported 102-51 Date of most recent report 31-Mar-20 102-52 Reporting cycle Annual 102-53 Contact point for questions regarding the report SR: 71 Fully reported 102-54 Claims of reporting in accordance with the GRI Standards SR: 63-64 Fully reported 102-55 GRI content index SR: 65-67 Fully reported 102-56 External assurance SR: 52 Fully reported Economic performance 201-1 Direct economic value generated and distributed AR: 04-48 Fully reported 201-2 Financial implications and other risks and opportunities SR: 27; AR: 63 and 73-75 Fully reported due to climate change 201-3 Defined benefit plan obligations and other retirement plans AR: 156-159 Fully reported 201-4 Financial assistance received from government AR: 02, 79, 107 Fully reported Anti-corruption 205-1 Operations assessed for risks related to corruption SR: 45; ABP Fully reported 205-2 Communication and training about anti-corruption policies SR: 45-46 Fully reported and procedures 205-3 Confirmed incidents of corruption and actions taken SR: 45 Fully reported Tax 207-1 Approach to tax SR: 48 Fully reported Environmental – emissions 305-1 Direct (Scope 1) GHG emissions SR: 52 Fully reported 305-2 Energy indirect (Scope 2) GHG emissions SR: 52 Fully reported 305-3 Other indirect (Scope 3) GHG emissions SR: 52 Fully reported 305-4 GHG emissions intensity SR: 52 Fully reported

SR: 3i Group Sustainability report 2021 (this report) AR: 3i Group Annual Report 2021 (http://www.3i.com/investor-relations/report-library/2021) ABP: Anti-bribery policy (https://www.3i.com/sustainability/sustainability-policies/) 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 67 GRI content index continued

GRI standard title Disclosure Fully reported/ number Disclosure title Page number other comment 305-5 Reduction of GHG emissions SR: 52 Fully reported Environmental – waste 306-2 Waste by type and disposal method SR: 51 Fully reported Supplier environmental assessment 308-1 New suppliers that were screened using environmental criteria SR: 53 Partially reported Employment 401-1 New employee hires and employee turnover SR: 33 Fully reported 401-2 Benefits provided to full-time employees that are not provided SR: 38 Fully reported to temporary or part-time employees 401-3 Parental leave SR: 38 Fully reported Occupational health 403-1 Occupational health and safety management system SR: 42 Fully reported 403-6 Promotion of worker health SR: 39-40 and 42 Fully reported 403-8 Workers covered by an occupational health and safety management SR: 42 Fully reported system 403-9 Work-related injuries SR: 42 Fully reported 403-10 Work-related ill health SR: 42 Fully reported Training and education 404-2 Programmes for upgrading employee skills and transition assistance SR: 36-37 Fully reported programmes 404-3 Percentage of employees receiving regular performance and career SR: 36 Fully reported development reviews Diversity and equal opportunity 405-1 Diversity of governance bodies and employees SR: 33 Partially reported Non-discrimination 406-1 Incidents of discrimination and corrective actions taken SR: 32 Fully reported Freedom of association and collective 407-1 Operations and suppliers in which the right to freedom SR: 12, 29, 31, 53-54 Fully reported bargaining of association and collective bargaining may be at risk Forced or compulsory labour 409-1 Operations and suppliers at significant risk for incidents of forced SR: 12, 29, 31, 53-54 Fully reported or compulsory labour Supplier social assessment 414-1 New suppliers that were screened using social criteria SR: 12, 29, 31, 53-54 Fully reported Public policy 415-1 Political contributions SR: 45; AR: 122 Fully reported Customer privacy 418-1 Substantiated complaints concerning breaches of customer privacy SR: 46 Fully reported and losses of customer data Product portfolio FS8 Monetary value of products and services designed to deliver a AR: 73; SR: 11-29 Fully reported specific environmental benefit for each business line broken down by purpose Active ownership FS10 Percentage and number of companies held in the institution’s SR: 11-29 Fully reported portfolio with which the reporting organisation has interacted on environmental or social issues

SR: 3i Group Sustainability report 2021 (this report) AR: 3i Group Annual Report 2021 (http://www.3i.com/investor-relations/report-library/2021) 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 68 SASB

For the first time this year, we are choosing to report against the SASB disclosure framework, noting its growing importance among our investor base. The table below summarises 3i’s current SASB alignment. We will work to improve these disclosures over time.

Topic Code Indicator Details Table 1. Transparent FN-AC-270a.1 (1) Number and (2) percentage of covered We have no records of investment-related investigations, consumer- Information & employees with a record of investment-related initiated complaints or other regulatory proceedings made against any Sustainability Fair Advice for investigations, consumer-initiated complaints, current employee. Disclosure Topics Customers private civil litigations, or other regulatory & Accounting Employees may engage in private civil litigation (non investment-related) proceedings Metrics but we are not aware of any proceedings of significance. FN-AC-270.2 Total amount of monetary losses as a result of None. legal proceedings associated with marketing and communication of financial product related information to new and returning customers FN-AC-270a.3 Description of approach to informing customers 3i does not have ‘retail’ customers. It has shareholders, for the benefit about products and services of whom the Company is managed. Our regulatory customers are professional clients that invest in the private funds that we manage, or act as co-investors in some of our investments. Please refer to: • Pages 60-61 of this Sustainability report for a discussion of our stakeholders. • Pages 77-78 and 86-87 of our Annual report 2021, available on www.3i.com/investor-relations for a discussion of how we engage with our shareholders and Fund investors. Employee FN-AC-330a.1 Percentage of gender and racial/ethnic group We make partial disclosures under this heading due to our small Diversity & representation for (1) executive management, headcount. Please refer to pages 33-34 of this Sustainability report. Inclusion (2) non-executive management, (3) professionals, and (4) all other employees 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 69 SASB continued

Topic Code Indicator Details Incorporation of FN-AC-410a.1 Amount of assets under management, by asset Amount of assets under management that employ: Environmental, class, that employ (1) integration of ESG issues, (1) integration of ESG issues: 100% of total AUM, 100% of Private Equity Social and (2) sustainability themed investing, and AUM; 100% of Infrastructure AUM. Governance (3) screening Factors (ESG) (2) Sustainability themed investing: none, we do not manage thematic in Investment sustainability assets or funds. Management & (3) Screening: 100% of total AUM, 100% of Private Equity AUM; 100% of Advisory Infrastructure AUM. Please refer to pages 11-29 of this Sustainability report. FN-AC-410a.2 Description of approach to incorporation of ESG Please refer to pages 11-29 of this Sustainability report. factors in investment and/or wealth management processes and strategies FN-AC-410a.3 Description of proxy voting and investee Please refer to: engagement policies and procedures • Pages 11-29 of this Sustainability report. • Page 120 of our Annual report 2021, available on www.3i.com/investor-relations Business Ethics FN-AC-510a.1 Total amount of monetary losses as a result of None. legal proceedings associated with fraud, insider trading, anti-trust, anti-competitive behaviour, market manipulation, malpractice, or other related financial industry laws or regulations FN-AC-510a.2 Description of whistleblower policies and Please refer to page 47 of this Sustainability report. procedures 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 70 SASB continued

Topic Code Indicator Details Systemic Risk FN-AC-550a.1 Percentage of open-ended fund assets under Not applicable. 3i does not manage open-ended investment vehicles. Management management by category of liquidity classification Please refer to the following for a description of our business: • Page 4 of this Sustainability report. • Pages 4-5 of our Annual report 2021, available on www.3i.com/investor-relations FN-AC-550a.2 Description of approach to incorporation of Not applicable. 3i does not manage open-ended investment vehicles that liquidity risk management programs into portfolio offer frequent liquidity. strategy and redemption risk management Please refer to the following for a description of our business: • Page 4 of this Sustainability report. • Pages 4-5 of our Annual report 2021, available on www.3i.com/investor-relations FN-AC-550a.3 Total exposure to securities financing transactions None. FN-AC-550a.4 Net exposure to written credit derivatives None.

Table 2. FN-AC-000.A (1) Total registered and (2) total unregistered We do not manage any assets subject to the regulations of the Investment assets under management (AUM) Company Act of 1940 (1940 Act). Activity Metrics Please refer to pages 4-5, 34 of our Annual report 2021, available on www.3i.com/investor-relations, for information on our AUM. FN-AC-000.B Total assets under custody and supervision Not applicable. We do not perform regulated custody or supervision activities. 3i Group plc Sustainability report 2021 Introduction A responsible investor A responsible employer A good corporate citizen GRI and SASB 71

Contacts

Should you have any questions on the content of this report, please contact: Silvia Santoro Group Investor Relations Director +44 20 7975 3258 [email protected]

www.3i.com/sustainability www.3i.com/investor-relations