Introduction
As we approach the 2024 submission cycle for the ESG Data Convergence Initiative (EDCI), there are several updates and enhancements to the process aimed at improving clarity, efficiency, and inclusivity. Whether you're a GP, LP, or other stakeholder, understanding these changes will help streamline your submissions and ensure compliance with the latest guidance. Below, we've summarised the most critical changes to help you navigate the updates with ease.
Summary of Key Changes for 2024
Enhanced Clarity in Reporting Guidelines
Fund and Portfolio Selection: More explicit instructions have been added to guide fund and portfolio company selection for reporting.
Industry-Specific Reporting: New contexts and guidelines for sectors such as Venture, Infrastructure, and Private Credit have been included.
Definitions Update: Key terms such as growth stage, FTE, turnover, and C-suite roles have been clarified for consistent usage.
Expanded Metrics and Reporting Features
New Optional Metrics: Additional metrics on employee satisfaction and sentiment now allow organisations to include employee engagement insights.
Renewable Energy Reporting: Improved methodologies for renewable energy metrics have been introduced, aligning with industry standards.
Net Zero Metrics Transition: These have moved from being optional to core metrics, emphasising the importance of sustainability.
Template Adjustments
Additional Demographic Fields: Expanded fields for fund type, classification, and asset stages now cater better to Venture and Infrastructure investors.
Streamlined Turnover Reporting: Annual turnover will now be reported as an absolute count of FTEs, reducing errors and simplifying the process.
Employee Sentiment Data: A new column for employee satisfaction scores has been introduced, offering more insight into workplace culture.
Metric Review and Removal
Low Submission Metrics: Metrics with low engagement or compliance, such as LGBTQ board diversity, have been retired following extensive feedback and review processes.
Introduction of New Review Policies: A framework has been implemented for evaluating and potentially revising metrics with low participation.
Why These Changes Matter
These updates reflect the EDCI's commitment to evolving industry needs and global standards. They aim to make data submissions more actionable, comparable, and inclusive, providing stakeholders with robust tools to measure and report ESG performance effectively.
Conclusion
By understanding and incorporating these changes into your processes, you can contribute to a more streamlined and meaningful ESG data ecosystem. The enhancements for 2024 aim to not only simplify submissions but also drive alignment across the industry.
For further help and guidance, reach out to the KEY ESG team via the in-platform chat function, or by emailing support@keyesg.com.