The ESG Data Convergence Initiative, which aims to align GPs and LPs around a common set of ESG metrics, will add an additional data point for its second year: “Percentage of women at C-level”.
The initiative launched with a set of six metrics, spanning GHG emissions, renewable energy usage, board diversity, work-related injuries, net new hires and employee engagement. The intention from the outset was to add to these metrics over time. “The steering committee considered adding further metrics but ultimately decided just to add one metric for 2023, given the broad desire of the EDCI community to limit changes in its inaugural year,” according to the initiative’s newsletter.
Additional metrics relating to Paris-aligned GHG emissions are “a priority for further discussion and potential inclusion next year”, but more time needs to be allowed for members to formalise emissions targets and gather data.
Launched last year, the EDCI collects standardised ESG data on an annual basis, which is then compiled into a benchmark. Data for its inaugural benchmarking process has been submitted and is being aggregated by Boston Consulting Group.