ESG Data Convergence Initiative

The ESG Data Convergence Initiative (EDCI) is an industry-wide effort to streamline the private investment industry’s historically fragmented approach to collecting and reporting environmental, social and governance (ESG) data. The goal of the initiative is generating useful, performance-based, comparable ESG data.

To create this convergence, the Initiative’s participating firms agree to report on a core set of ESG metrics drawn from existing frameworks. The categories currently include greenhouse gas emissions, net zero commitment, renewable energy, board and C-suite diversity, work-related accidents, net new hires, and employee engagement.

The partnership is open to any private investors that agree to support the principles of the work. As of January 2024, the EDCI’s members include 375+ GPs and LPs representing ~$28 trillion in assets under management.

EDCI Overview and Partnership

ILPA believes the industry’s collaboration in this effort is a meaningful step in the right direction to solve the lack of quality, comparable data in the ESG space.

Given the success of the project and its role as a trusted convener and steward of industry standards and best practices, ILPA stepped into the role of Secretariat to the EDCI in 2022. In its capacity as Secretariat, ILPA facilitates the annual EDCI Steering Committee meetings and supports the Steering Committee governance and elections. While ILPA members aren’t required to participate in the initiative, LPs looking for quality, comparable ESG metrics will certainly benefit.