Private equity players urged to consider ESG factors going forward

Private Equity players are being urged to consider environmental, social and corporate governance ("ECG") factors much more going forward by the LP investing community, according to Institutional Investor magazine.  The piece, penned by Katie Gilbert in January 2015 entitled "Filtering Through", discusses this development.  

A Disclosure Framework for ECG has been developed by a number of industry leaders representing some 40 institutional investors, ten PE firms, and 20 PE industry associations.  As one investment professional put it: "If there is a sense we are not asking for this stuff, let's ask for it with a consistent voice".  Findings expected later this year from the United Nations is expected to show some three-quarters of LP respondents are now making ESG factors part of manager selection.  One growth area cited in the article is growing interest by PE firms to invest abroad, making ESG factors increasingly important in such environments.