Strategic Focus: ESG Reporting Tools For Private Equity Firms
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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.The case for ESG in private equity
Investors face unique challenges with regards to ESG reporting and data management
Software vendors are offering specific solutions to help investors
Figure 2. Comparison of the PRI and the EDCI
Figure 3. How software can help private equity investors with ESG reporting
About the Authors
Jessica Pransky
Principal Analyst
Jessica is a Principal Analyst at Verdantix, specializing in providing insights to sustainability leaders and analysing ESG and sustainability reporting software. She advises ...
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Kim Knickle
Research Director
Kim Knickle is a Research Director at Verdantix, bringing more than two decades of analyst experience to the evolving world of sustainability. Her current research spans ESG a...
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