Our approach to responsible investment

Incorporating ESG principles into our investment practice aligns these activities with our core values and broader societal objectives.

STRATEGY AND GOVERNANCE

We believe that evaluating ESG risks and opportunities in our investment activities and internal operations will enhance financial returns for our investors over the long term. As an anchor institution in the Cambridge ecosystem, we seek to demonstrate leadership in our investment practice, including the consideration of ESG issues in our investments. We work with partners and coinvestors in Cambridge, and the broader innovation ecosystem, to accelerate the incorporation of ESG issues into portfolio company operations. We are a signatory of the United Nations Principles for Responsible Investment. These principles advocate for a transparent and evidence-based investment and stewardship process that incorporates ESG issues. POLICIES AND PROCESSES

As part of our due diligence process, we seek to identify any ESG risks associated with a company’s activities. This includes risks relating to the company’s own operations, as well as potential risks in its supply chain. Where we consider that the ESG risks could be material (either currently or when the business is scaled up), we work with the portfolio company on an action plan to manage the risks. This process also recognises that many portfolio companies are at an early stage. We require portfolio companies to put action plans in place to ensure mitigation, management and reporting on any immediate ESG risks, and we provide guidance to put processes in place to manage ESG risks that may emerge as they scale up. Our investment process incorporates consideration by the Investment Committee of these ESG issues in each investment decision, including new investments, follow-on investments and exits. Our ESG policies are included on pages 14 to 15 of this report.