ESG Data Convergence Project

Leading global GPs and LPs have partnered to align on a standardized set of ESG metrics and mechanism for comparative reporting.

 

The Project's objective is to streamline the private equity industry’s historically fragmented approach to collecting and reporting ESG data in order to create a critical mass of meaningful, performance-based, comparable ESG data from private companies. This allows GPs and portfolio companies to benchmark their current position and generate progress toward ESG improvements, while enabling greater transparency and more comparable portfolio information for LPs.

 

To create this convergence, the Project aligns on reporting a core set of six initial ESG metrics, drawn from existing frameworks. The metrics cover: Scopes 1 and 2 greenhouse gas emissions, renewable energy, board diversity, work-related injuries, net new hires, and employee engagement. For the 2021 calendar year, GPs will track and report these six metrics a standardized format for underlying portfolio companies. The data will be shared directly with invested LPs and aggregated into an anonymized benchmark by Boston Consulting Group (BCG), which supported this overall effort.

 

The group plans to meet annually to assess the prior year’s data, and to refine and build on these initial metrics, prioritizing materiality. This collaboration is intended to be a long-term mechanism to increase the quality, availability, and comparability of ESG data in private markets.

 

The partnership is open to any GPs and LPs that wish to join and agree to support the principles of the work. The effort encourages private equity industry stakeholders to work together to gather better, decision-useful ESG data in order to generate deeper insight into ESG factors and their relationship to financial outcomes, and, ultimately, to drive greater progress on critical ESG issues.

To learn more about this initiative please see the following resources:

ESG Best Practice Submission Form

ILPA welcomes submissions to the ESG Roadmap. To be considered, please click above to complete the form.

View the overview materials to learn more about the ESG Data Convergence Project.

Access the data agreement.

 

Indicate interest and receive an invitation to attend an informational session this fall.

When complete, please submit the data agreement here.

 

Formally join the Project by visiting this web link.

Review technical guidance for ESG reporting within PE as proposed by the Project with this handbook.

Upcoming International Sessions:

  • US/EMEA: October 13th from 11:00am-12:00pm ET/4:00pm-5:00pm London/11:00pm-12:00am Hong Kong. Register here.
  • EMEA/Asia: October 14th from 4:00am-5:00am ET/9:00am-10:00am London/4:00pm-5:00pm Hong Kong. Register here.

List of Participating LPs:

  • AlpInvest Partners*
  • APG*
  • California Public Employees’ Retirement System*
  • CPP Investments*
  • Employees’ Retirement System of Rhode Island*
  • PGGM*
  • PSP Investments*
  • The Pictet Group*
  • Wellcome Trust*

 

*Steering Committee Member

List of Participating GPs:

  • Blackstone*
  • Bridgepoint Group Plc*
  • Carlyle*
  • CVC*
  • EQT AB*
  • Permira*
  • TowerBrook*

For more information or to contact the Project with questions reach out to ESGDataConvergence@CalPERS.ca.gov.