The Private Equity Council, an advocacy group made up of 13 of the largest buyout firms, is adopting a new set of guidelines for an industry tarnished by recent Wall Street excesses.
The new guidelines cover environmental, health, safety, labor, governance and social issues. Among the highlights of the 9 new guidelines are industry commitments to:
– Consider environmental, public health, safety, and social issues associated with target companies when evaluating whether to invest in a particular company or entity, as well as during the period of ownership.
– Seek to grow and improve the companies in which they invest for long-term sustainability and to benefit multiple stakeholders, including on environmental, social and governance issues.
– Seek to use governance structures that provide appropriate levels of oversight in the areas of audit, risk management and potential conflicts of interest and to implement compensation and other policies that align the interests of owners and management.
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