ESG Data Convergence Project metrics for the Private Equity market launch on ESG Book
– Launch of ESG Data Convergence Project metrics on ESG Book enables private equity GPs and LPs worldwide to access meaningful, performance-based, comparable sustainability data from private companies.
– Supported by over 100 leading private equity firms representing $8.7 trillion USD in AUM and more than 1,400 private companies, the ESG Data Convergence Project standardises ESG reporting for private markets.
– Through ESG Book, private companies can disclose information against the ESG Data Convergence Project’s reporting template as well as on a range of sustainability frameworks globally.
– Delivered through cloud technology, ESG Book enables companies to be custodians of their data through a secure digital platform, provides framework-neutral ESG information in real-time, and promotes transparency.
ESG Book, the central source for accessible and digital corporate sustainability data, today announced that private companies can now disclose sustainability data on the platform through a new set of metrics designed to standardise ESG reporting for private markets.
The launch of ESG Data Convergence Project metrics on ESG Book enables private equity general partners (GPs) and limited partners (LPs) worldwide to access meaningful, performance-based, comparable sustainability data from private companies.
Supported by over 100 leading private equity firms representing $8.7 trillion USD in AUM and more than 1,400 private companies, the ESG Data Convergence Project was unveiled in September 2021 as a solution to the private market’s historically fragmented approach to collecting and reporting ESG data. Through ESG Book, private companies are able to disclose information against the Project’s reporting template, as well as on a wide range of sustainability frameworks globally.
Delivered through cutting-edge cloud technology, ESG Book makes sustainability data more widely available and comparable for all stakeholders, allows companies to be custodians of their own data through a secure digital platform, provides framework-neutral ESG information in real-time, and promotes transparency. The platform is supported by international organisations including the International Finance Corporation (IFC), and runs according to principles from the UN Global Compact, which encourages companies to adopt sustainable policies.
Dr Daniel Klier, CEO of ESG Book, said: “The lack of a comparable, consistent ESG data collection and reporting framework has long been an issue for the private equity industry in assessing the sustainability progress of portfolio companies. The ESG Data Convergence Project is a vitally important initiative to help address this problem, and through ESG Book, we are now able to offer a market-leading solution that makes it easier for private companies to securely disclose their sustainability data against meaningful performance metrics. In doing so, this will increase transparency across private markets, reduce data gaps, and drive material ESG improvements.”
On ESG Book, private companies can map their data against the Private Equity ESG Data Convergence Project’s key metrics, alongside other frameworks including the Sustainability Accounting Standards Board (SASB), Global Reporting Initiative (GRI), Sustainable Finance Disclosure Regulation (SFDR) and Task Force on Climate-related Financial Disclosures (TCFD). This will accelerate data comparability across companies, including publicly listed corporations, with a suite of analytics and benchmarking tools allowing GPs and LPs, together with portfolio companies, to measure progress on ESG performance.
Today’s announcement comes as capital flows towards ESG strategies across private markets continues to rapidly grow, with an estimated $3.1trillion1 of sustainable investments – one-third of private capital under management – now committed worldwide.
1) ‘ESG in Alternatives Report 2021’, Preqin
Notes to Editors
ESG Book is the new central source for digital corporate sustainability data, and is supported by a global alliance of leading organisations including the International Finance Corporation (IFC), Global Reporting Initiative, Bridgewater Associates, HSBC, Deutsche Bank, HKEX, Allianz and Swiss Re. ESG Book was developed by Arabesque, a technology company supporting the financial industry in sustainability and artificial intelligence. It counts many of the world’s leading financial organisations among its clients, which collectively manage over $120 trillion in assets.