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What we do

What | The ESG Data Convergence Initiative is an open partnership of private equity stakeholders committed to streamlining the private investment industry’s historically fragmented approach to collecting and reporting ESG data. Our mission is to create a critical mass of meaningful, performance-based, and comparable ESG data from private companies.

Why | We seek to overcome the disparate constellation of ESG performance assessment frameworks and tools in the private equity industry. Converging as an industry on consistent definitions allows general partners (GPs) and their portfolio companies to benchmark their position and generate progress toward ESG improvements while enabling greater transparency and more comparable portfolio information for limited partners (LPs).

How | To create this convergence, the Initiative’s participating firms agree to report on a core set of ESG metrics drawn from existing frameworks. The categories include greenhouse gas emissions, renewable energy, board and C-suite diversity, work-related accidents, net new hires, and employee engagement. GPs track the agreed-upon metrics for their portfolio companies and report them in a standardized format. The data are shared directly with invested LPs, and aggregated into an anonymized benchmark by Boston Consulting Group (BCG), which is supporting the overall effort.

Who | The EDCI’s members include 350+ GPs and LPs representing ~$28 trillion in assets under management. In addition, a number of investment advisers and consultants are aligned with the effort.