WEBVTT 1 00:00:00.330 --> 00:00:01.380 What is the EDCI? 2 00:00:01.380 --> 00:00:03.450 The ESG Data Convergence initiative 3 00:00:03.450 --> 00:00:06.840 is bringing together LPs and GPs 4 00:00:06.840 --> 00:00:10.680 that collectively represent over $20 trillion in capital 5 00:00:10.680 --> 00:00:13.530 and they will be providing the EDCI 6 00:00:13.530 --> 00:00:16.380 with their data of their companies 7 00:00:16.380 --> 00:00:18.660 in terms of ESG performance. 8 00:00:18.660 --> 00:00:23.220 So what this means is, for the first time in history 9 00:00:23.220 --> 00:00:25.740 investment teams when doing an acquisition 10 00:00:25.740 --> 00:00:27.270 can look at a target 11 00:00:27.270 --> 00:00:29.340 and understand where that company performs 12 00:00:29.340 --> 00:00:31.530 relative to the same companies 13 00:00:31.530 --> 00:00:34.830 or the peer companies in its sector, in its geography. 14 00:00:34.830 --> 00:00:36.510 Over the course of the holding period 15 00:00:36.510 --> 00:00:39.870 a board member can understand how a company is performing 16 00:00:39.870 --> 00:00:41.430 relative to its peer set 17 00:00:41.430 --> 00:00:43.890 as it undertakes one of these improvement journeys. 18 00:00:43.890 --> 00:00:47.130 Likewise, on exit, you'll know where you stand. 19 00:00:47.130 --> 00:00:49.740 Therefore, for the sector to come together and say 20 00:00:49.740 --> 00:00:52.470 not only do we recognize the opportunity 21 00:00:52.470 --> 00:00:54.570 we create for the companies that we own, 22 00:00:54.570 --> 00:00:56.700 but we are going to disclose this data, 23 00:00:56.700 --> 00:00:59.850 we are going to be transparent about the performance 24 00:00:59.850 --> 00:01:02.580 of our companies on environmental, social 25 00:01:02.580 --> 00:01:05.160 and governance factors is a monumental step, 26 00:01:05.160 --> 00:01:07.110 one that I believe will go down in history 27 00:01:07.110 --> 00:01:09.180 as an inflection point for this sector. 28 00:01:09.180 --> 00:01:12.030 We've known for years, the private equity industry 29 00:01:12.030 --> 00:01:14.941 affords companies an ideal context 30 00:01:14.941 --> 00:01:17.910 in which to undertake sustainability transformations, 31 00:01:17.910 --> 00:01:21.690 transformations that unlock longterm value, why? 32 00:01:21.690 --> 00:01:24.930 Longterm holding periods, collaborative relationships 33 00:01:24.930 --> 00:01:26.910 between owners and management, 34 00:01:26.910 --> 00:01:29.370 and the ability to undertake investments 35 00:01:29.370 --> 00:01:31.143 that have longer payback periods. 36 00:01:32.220 --> 00:01:34.050 For the sector to have chosen BCG 37 00:01:34.050 --> 00:01:36.690 as its longterm partner is an enormous privilege 38 00:01:36.690 --> 00:01:40.080 and a trust by the sector in us that we do not take lightly. 39 00:01:40.080 --> 00:01:41.520 It's also a testament we believe 40 00:01:41.520 --> 00:01:43.590 to the enormous investment BCG has made 41 00:01:43.590 --> 00:01:46.020 in its capabilities around sustainability. 42 00:01:46.020 --> 00:01:48.060 This data benchmark and insight 43 00:01:48.060 --> 00:01:50.520 will unlock enormous improvements 44 00:01:50.520 --> 00:01:52.500 in the companies in this sector. 45 00:01:52.500 --> 00:01:54.330 Private equity will be the home 46 00:01:54.330 --> 00:01:55.950 to some of the most inspiring 47 00:01:55.950 --> 00:01:59.167 and most bold sustainability transformations. 48 00:01:59.167 --> 00:02:01.834 (ambient music)