From 2024 the EDCI will include in its data collection “a metric related to PortCo-level decarbonisation and net zero commitments”, the organisation said last week.
The EDCI is an initiative to align LPs and GPs around a relatively simple, harmonised set of ESG metrics covering GHG emissions, renewable energy, diversity, workplace safety, net new hires and employee engagement. It now counts more than 350 GP and LP participants, according to its website.
The additional metric, which will be optional for the 2024 reporting cycle, was selected “in close consultation with IIGCC and iCI net-zero frameworks currently being developed”, EDCI said in an emailed statement.
The net-zero metric will consist of three questions: does this portfolio company have a decarbonisation strategy or plan in place? Does this portfolio company have a short-term (ie. five to 10 years) GHG emission reduction target in place? Does this portfolio company have a long-term net-zero goal?