ESG Data Convergence Initiative Annual Report

This document is the second annual report of the ESG Data Convergence Initiative (EDCI), which aims to enhance environmental, social, and governance (ESG) reporting within the private equity sector. The report outlines significant improvements in response rates from general partners (GPs), funds, and portfolio companies, with a notable 90% increase in the number of companies participating. Despite these advancements, the report indicates that only 45% of the private equity net asset value is captured by the data, highlighting areas for further improvement. The report details the carbon intensity of PAA portfolio companies, noting that they are less carbon intensive than their public counterparts. It emphasizes the importance of targeted engagement efforts, particularly focusing on the companies responsible for the majority of emissions. The report also discusses the lag in renewable energy adoption among private companies compared to public firms, and it encourages broader participation in the EDCI to drive further improvements in sustainability metrics.