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E&F Private Equity (E&F PE) has become a signatory to the United Nations-supported Principles for Responsible Investment (PRI) as it joins other private equity firms in integrating environmental, social and governance (ESG) issues into investment practices.

The Seoul-based mid-sized private equity firm on July 20 signed the PRI, according to sources. Launched in 2006, the PRI is a global network of investors working to implement six principles that incorporate ESG considerations into investment decision-making.

The PRI globally has more than 3,800 signatories representing $121.3 trillion in assets under management. PRI signatories must report on their responsible investment activities annually.

E&F PE has focused on investing in the waste management sector, with its notable portfolio companies including Koentec, Saehan Environment and Environment & Energy Solution. The firm expect its move to join the PRI will give it an advantage amid the increased interest in ESG investing. Other South Korean private equity signatories to the PRI include MBK Partners, IMM Private Equity, STIC Investments and Glenwood Private Equity.

PwC Hong Kong provided consulting services to E&F PE to create the firm’s ESG policies and ESG criteria which will be applied to its investment decisions. E&F PE will incorporate ESG factors throughout its investment process from deal sourcing and due diligence to post-merger integration, and will also monitor and evaluate investments to ensure the ESG focus continues to be met.

E&F PE is in the process of raising its second flagship fund with a target fund size of between 500 billion won ($437.3 million) and 600 billion won. The firm has so far secured capital commitments from several domestic institutional investors including Korea Development Bank, National Pension Service and Korean Teachers' Credit Union. It aims to close the new fund by the end of this year. (Reporting by Se-hun Jo)