Integrating environmental, social and governance (ESG) factors into the investment process has become increasingly important in recent years to PE investors, particularly global institutional investors. There is also a movement, however, to extend the consideration of ESG factors beyond the investment phase and into the actual management of corporate entities. To that end, the Principles of Responsible Investment (PRI) – an independent organization supported by the United Nations – recently issued guidance on the duty of U.K. directors sitting on PE-backed portfolio company boards to consider the ESG risks and opportunities those companies face when making decisions. PRI’s recommendations were based on a legal memorandum commissioned from Debevoise & Plimpton. This article highlights key points from the guidance and, as appropriate, the memorandum. For more on PRI, see our two-part series “The Past, Present and Future of ESG Investing in the Private Fund Industry” (Nov. 10, 2016); and “How Fund Managers Can Design an ESG Investing Policy” (Nov. 17, 2016).