Thirteen member firms of the Private Equity Council have signed up to new guidelines for responsible investment after pressure from investors.

Private equity firms have come in for growing criticism for shutting down viable businesses at the cost of jobs where the individual assets are at that moment more valuable than the whole. Private equity firms often tend to operate without the usual scrutiny and governance processes associated increasingly with publicly traded companies.

Investors including the California Public Employees’ Retirement System have been calling for private equity firms in which they invest to join up to a version of the UN Principles for Responsible Investment. The new guidelines were drafted by the PEC members with investors under the auspices of the UN PRI.

Private Equity Council members will ow have to consider the environmental, public health, safety, and social issues associated with investing in a particular enterprise. They will also need to ensure that they are available to stakeholders interested in the companies in which they invest, and ensure that appropriate governance structures are in place.

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