Strategic Focus: ESG Reporting Tools For Private Equity Firms

Executive Summary

Private equity firms are under increased pressure from their investors and other stakeholders to report their sustainability metrics and to improve the sustainability performance of their portfolio companies. A growing number of private equity firms have begun publicly disclosing this information, either through an annual sustainability report or to groups that work to increase transparency and knowledge sharing in the industry, like the ESG Data Convergence Initiative (EDCI) or Principles for Responsible Investment (PRI). Private equity firms are increasingly using ESG data throughout the investment life cycle; this report provides an overview of the challenges they face when it comes to collecting and reporting ESG data during their hold period. It also details the types of digital solutions private equity firms can use to help alleviate some of these pain points.