The EDCI has several value propositions for General Partners
The ESG Data Convergence Initiative has a number of functions that are specifically tailored for all GPs
Streamlined Data Collection
Simplify reporting processes, saving time and resources for both GPs and portfolio companies
Clarity on ESG Performance
Gain clear insights into ESG performance of portfolio companies relative to peers while pinpointing strengths and areas for ESG improvements – includes nuanced classification for granular benchmarking
Simplified Data Sharing
Manage and streamline transmission of ESG data between GPs and LPs to share portfolio company data directly through the EDCI platform
Informed Investments
Add an analytical lens for making well-informed decisions about future investments
Financial Correlation
Uncover the correlation between ESG efforts and financial performance, guiding strategic investment choices
Financial Sustainability
From its inception, the EDCI has been made possible by many hundreds of people doing additional work off the sides of their desks, alongside the full time pro bono support provided by BCG. To ensure the Initiative is well positioned to sustain its current momentum, the Steering Committee has spent considerable time working with BCG to develop a plan to build financial sustainability for the EDCI over time, so it is not perpetually reliant on ongoing pro bono contributions.
Firstly, all GPs and LPs will be able to continue to participate in the EDCI free of charge for the foreseeable future, and in doing so access the high-quality benchmark offering available to participants in the inaugural year of the initiative (i.e. 2022). To ensure the Initiative can continue to serve the industry over the long term, the Steering Committee have developed a plan to build financial sustainability.
All EDCI GPs are now able to choose to become a premium EDCI member and self-select which premium tier enables the most value for their organization.
EDCI GP membership tiers for the 2025 Benchmark Year
GP Membership Features & Functionalities | EDCI Basic
Featured member on EDCI website
Have your firm publically listed as a member on the initiative website with the option to include on own comms.
Data validation support from Expand
Basic guidance and assistance from the BCG Expand team
High-level benchmark dashboards
Overview of most recent benchmark wtih high-level demographic filter categories (e.g. 'Consumer Goods' in 'EMEA')
Annual EDCI Insights deck
Detailed BCG report on trends and insights about EDCI metrics
Passive data sharing (answer inbounds from premium LPs only)
Ability to securely respond to data requests from premium LPs - No ability to proactively share data with LP members
GP Membership Features & Functionalities | EDCI Self-Serve
Self-serve granular benchmarking capabilities
Apply your own, more granular cuts for analysis (using all demographic variables, so long as at least 10 data points are available) with the ability to download granular benchmark data in Excel format
GP to LP data sharing (incl. proactive outbound sharing)
Ability to proactively and securely share data within portal with any EDCI member LP - a fully customizable data-sharing processes (e.g. ability to select which companies, data points, whether to include company names)
PC firms can make requests of PE funds to gain access to Sustainability data from companies they are lending to
GP Membership Features & Functionalities | EDCI Analytics
Fast tracked data validation, support within 48-hours
Have fast-tracked data validation support from Expand to ensure rapid data validation with responses from help-desk within 48-hours year-round
Heatmaps, tailored benchmarks, and NZIF/PMDR hypothesis
Heatmap view of PortCos/funds against tailored private benchmark (BCG to conduct analysis to identify most like-for-like peer-set for each PortCo)
Have NZIF and PMDR hypothesis placements for each PortCo generated alongside benchmarks
Easily visualize benchmark trends over time to understand how ESG performance is evolving
Tech platform visualization
Enable visualization of the EDCI benchmarks alongside broader financial and ESG data in EDCI partner software solutions
Rapidly growing set of EDCI software partnerships
GP Membership Features & Functionalities | EDCI Premium
Tailored EDCI debrief session with the BCG team
Dedicated session with BCG's experts to unpack portfolio sustainability performance and receive recommendations on value creation opportunities
Deep-dive analyses of snapshot and trending performance across PortCos
Portfolio-wide scorecard to visualize GP's strengths and opportunities for improvement
Ability to visualize benchmark in fund’s in-house data platform
Custom built API integration into in-house software platform
Enable visualization of the EDCI benchmarks alongside broader financial and ESG data
What does it mean for General Partners to be part of this initiative?
To participate, GPs agree to:
- Determine funds that will take part in the initiative (while we recognize GPs may start with a subset of their investment strategies, the expectation is this will increase over time, as feasible)
- On a best-efforts basis, track EDCI metrics, with an emphasis on core metrics
- Abide by the EDCI Metrics Guidance to the extent possible and explain deviations
- As requested, provide EDCI data to LPs, preferably using the data sharing functionality on the EDCI portal, or related template
- Submit data to the EDCI for participating portfolio companies by April 30 each year
- Be publicly associated with the initiative
- Voluntary: serve on working groups or self-nominate to join the Steering Committee