Responsible investment

The Board has endorsed the Manager’s policies to invest the Company’s funds in a socially responsible manner.

The Company’s focus is on identifying high-quality and sustainable businesses, and supporting their growth for the benefit of shareholders and wider society. The Board monitors the Manager’s investment activity to ensure they are compatible with these policies.

The Company has no employees and has limited direct impact on the environment. The Company aims to conduct itself responsibly, ethically and fairly and has sought to ensure that HgCapital’s management of the portfolio of investments takes account of social, environmental and ethical factors where appropriate. The Manager seeks investment opportunities on a sector basis. The sectors chosen do not generally raise material ethical issues.

The Manager believes that the transition to a low-carbon economy offers opportunities for profitable investment and that its skills in the deployment of new technology, corporate design and the building of sustainable businesses can be applied in renewable power generation. In 2006 and again in 2010, the Company committed to invest in the Hg Renewable Power Partners funds.

The Board has a clear view of the rationale for investing in private equity through an investment trust. This informs its decisions on the operation of the Company and the evolution of the Company’s Business Model.