ESG Data Convergence Initiative (EDCI)

The ESG Data Convergence Initiative (EDCI) is a global initiative that seeks to unify and standardise the collection and reporting of ESG (environmental, social and governance) data in private markets, particularly private equity, infrastructure and private credit.

Launched in 2021, the EDCI aims to improve the comparability of ESG data across companies and funds, promoting greater transparency and efficiency in sustainable investment. It is now run in partnership with the Institutional Limited Partners Association (ILPA).

Origin and objectives of the initiative

The EDCI was initially driven by the Bureau of Asset Management of the New York City Retirement Systems together with several leading private equity firms. Its purpose is to provide a common framework to:

• Reduce fragmentation in ESG data reporting.
• Improve the quality and consistency of ESG information.
• Enable informed decision-making by institutional investors.

Standardised ESG metrics

The initiative defines a core set of metrics that participating portfolio companies report each year, including:

• Greenhouse gas (GHG) emissions and Scope 1, Scope 2 and Scope 3 coverage.
• Net-zero commitments.
• Renewable energy consumption.
• Board and C-suite diversity.
• Work-related injuries.
• Net new hires and employee engagement.

How the data is aggregated

Participating general partners (GPs) report the core metrics in a standardised format. The data is then validated and aggregated into an anonymised benchmark by Boston Consulting Group (BCG) before being shared with limited partners (LPs), allowing each firm to compare its portfolio against the wider market without exposing confidential company-level data.

Impact on the financial sector

The EDCI helps integrate ESG factors into financial risk and opportunity assessment, aligning with the expectations of investors and regulators. As more firms adopt the framework, comparability across portfolios increases and the commitment to sustainability strengthens.

Participation and growth

The EDCI has grown quickly. By 2025 it brought together more than 500 general and limited partners representing tens of trillions of dollars in assets under management and several thousand participating companies, making it one of the most significant collaborative efforts on ESG data in private markets.

Relationship with other ESG standards and frameworks

The EDCI complements other reporting frameworks, including:

• GRI Standards (Global Reporting Initiative)
• SASB Standards, now maintained by the ISSB.
• The recommendations of the former TCFD, now absorbed into IFRS S2.
• SFDR and the CSRD in the European Union.

By aligning private-market ESG data with these frameworks, the EDCI promotes greater regulatory coherence. At Manglai we help companies measure their carbon footprint and report consistent, comparable sustainability data. Discover how Manglai can help you.