Private equity companies sign up to UN principles

February 12, 2009

In a previous blog we concluded that sustainability would increasingly impact the agenda of private equity companies. On the bases of research we did we stated that private equity companies confirmed this, but that at best their policy base to deal with this challenge was fragmented and poor. We formulated three recommendations, of which the first was that private equity companies should better deal with the increasing impact of sustainability by setting up a strategy process, designing specific actions and targets that are aligned with their overall objectives.
This week it turns out that 13 of the world’s biggest private equity companies have acknowledged the relevance of sustainability by signing up to the United Nations Principles for Responsible Investment. In view of the financial crisis it has become ever more important for this industry to pay closer attention to non-financial questions, such as social, environmental and transparency issues.
In the Financial Times Henry Kravis, co-founder of Kohlberg Kravis Roberts, is quoted:
“Our ability to be part of the solution to today’s problems requires regaining the trust and confidence of the public.”
This step doesn’t really surprise me: it was obvious that the private sector industry would have to move in this direction. What does surprise me is that the Anglo Saxon part of the industry seems to be moving faster than their European counterparts. I’m keenly awaiting to see how the Association of Private Equity Firms in The Netherlands will respond to this development. Hope they will leapfrog their international counterparts. In the summer we will repeat our sustainability review of the Dutch sector and we will test the firms on this aspect.



Share this article with :

---

Comments on this blog

---

There are no comments on this blog

---

Your comment

---

Name * :
E-mail :
	Show my e-mail on the website
Message * :