-: What is the EDCI?
The ESG Data Convergence initiative
is bringing together LPs and GPs
that collectively represent over $20 trillion in capital
and they will be providing the EDCI
with their data of their companies
in terms of ESG performance.
So what this means is, for the first time in history
investment teams when doing an acquisition
can look at a target
and understand where that company performs
relative to the same companies
or the peer companies in its sector, in its geography.
Over the course of the holding period
a board member can understand how a company is performing
relative to its peer set
as it undertakes one of these improvement journeys.
Likewise, on exit, you'll know where you stand.
Therefore, for the sector to come together and say
not only do we recognize the opportunity
we create for the companies that we own,
but we are going to disclose this data,
we are going to be transparent about the performance
of our companies on environmental, social
and governance factors is a monumental step,
one that I believe will go down in history
as an inflection point for this sector.
We've known for years, the private equity industry
affords companies an ideal context
in which to undertake sustainability transformations,
transformations that unlock longterm value, why?
Longterm holding periods, collaborative relationships
between owners and management,
and the ability to undertake investments
that have longer payback periods.
For the sector to have chosen BCG
as its longterm partner is an enormous privilege
and a trust by the sector in us that we do not take lightly.
It's also a testament we believe
to the enormous investment BCG has made
in its capabilities around sustainability.
This data benchmark and insight
will unlock enormous improvements
in the companies in this sector.
Private equity will be the home
to some of the most inspiring
and most bold sustainability transformations.
(ambient music)