• 
• 
• 

The Committee has overseen the formulation and implementation of corporate responsibility investment procedures, implemented appropriate risk management procedures and set strategic targets and objectives for corporate responsibility.

3i's performance is measured against two indices:

• the Dow Jones Sustainability World Index ("DJSI"), a global index which tracks the
  financial performance of leading companies in terms of corporate sustainability; and
• the Business in the Community ("BitC") Corporate Responsibility Index, which aims
  to benchmark environmental, ethical and social performance and encourage
  sustainable development.

3i has again been selected as a constituent of the DJSI during the year and was leader of its industry group on a global basis. We were also recognised as one of the best companies on a global basis in respect of our codes of conduct, compliance and anti-crime measures. We aim to continue to be included within this Index.

In 2006 we again participated in the annual BitC Corporate Responsibility Index and were included in the BitC's "Top 100 Companies that Count". In particular, the integration into the business of our corporate responsibility principles and risk management processes relating to corporate responsibility issues were recognised. We aim to continue to be included within this Index.

Each of 3i's business unit and department heads is required to confirm on an annual basis that their operating procedures, including investment procedures, are consistent with 3i's standards and controls and that these procedures are operating in practice.

3i's performance management appraisal process reviews the performance of individual members of staff against agreed objectives and the knowledge, skills and behaviours expected by 3i. All 3i's offices are the subject of health and safety audits to ensure high standards are adopted on a consistent basis world-wide.

During the year, at the invitation of 3i's Chairman, Baroness Hogg, 3i's major shareholders met with the Chairman, the Chairmen of the Audit and Compliance Committee and the Remuneration Committee and the Company Secretary to discuss matters of corporate governance and corporate responsibility relevant to 3i and its shareholders.