EDCI

The greater availability of data is allowing managers to incentivise ESG action in new ways.

But when they have a plan in place the results come more quickly, suggests analysis of EDCI data by BCG.

Analysis of the third year of EDCI data suggests that even amid tougher economic times, private equity-backed companies create new jobs faster than public companies.

Apollo's Ooton sees LPs 'galvanise around' EDCI metrics, freeing up GP resources to focus on ESG improvements rather than questionnaires. And EDCI data shows early indications that PE-owned companies perform better on sustainability KPIs than public ones.

EDCI benchmarks can be used to shore up the ESG-linked loans market.

The service provider is currently used by firms including MiddleGround Capital, New Mountain Capital and Blue Wolf Capital.

The ESG Data Convergence Initiative has now gathered 62,000 data points in a standardised format. Vinay Shandal and Ben Morley, partners at Boston Consulting Group, describe three takeaways from their conversations with private equity GPs about the results.

A new report gives us some of the first statistics on how effective ESG initiatives are in private equity, how they correlate with material value and how they compare with other markets.

Boston Consulting Group's analysis of EDCI data provides one of the earliest pieces of statistical evidence of the ESG/material value relationship in private equity.

Another full year of ESG data gathering by EDCI members shows shows some progress within a mixed bag of performance data.