BCG’s Vinay Shandal discusses the importance of sustainability data and our partnership with the EDCI along with the impact of converging around sustainability metrics for the private equity sector.
Our Approach to Sustainability in Private Equity
BCG is a leader in advancing sustainability agendas, with experience on more than 1,600 groundbreaking projects across all major industries and geographies. Our teams have helped clients decarbonize multi-billion-dollar supply chains, identify new sources of green growth, and achieve factory-level circularity transformations. Our extensive sustainability experience across industries, together with our deep engagement in the private capital industry enables us to create value for clients in four primary areas:
- Fund Strategy and Operations. We help private equity funds define and operationalize their sustainability ambitions across the fund.
- Sector Scans. We identify attractive investment opportunities in industries where megatrends in sustainability are reshaping profit pools.
- ESG Diligence. We include sharp perspectives on sustainability as a driver of value in each commercial diligence.
- Portfolio Value Creation. We engage deeply in the portfolio, conducting portfolio scans to identify opportunities and leading sustainability transformations.
Our Clients’ Success with Sustainability in Private Equity
+30%
increase in enterprise value
A waste management company sought to drive growth through sustainability. In six weeks, our team analyzed relevant trends affecting the waste management space and identified six priority initiatives. The company is on track to achieve a 30% increase in enterprise value (from £270 million to £350 million), generating value from electric vehicle battery processing, tire and waste plastic pyrolysis, and green steel.
<3
year payback period
The Xella Group—a leading manufacturer and supplier of building and insulation materials—sought to develop a robust sustainability strategy that would reduce costs, improve profitability, and establish its reputation as an ESG leader. In ten weeks, BCG helped the company update its sustainability strategy and develop ambitious targets. Xella's expanded EBITDA margins are on track for a payback period of less than 3 years.
How We Support Private Equity’s Sustainability Priorities
BCG is at the forefront of supporting the private equity industry on sustainability topics:
- The ESG Data Convergence Initiative generates useful, performance-based, comparable sustainability data for the private equity industry.
- We are a partner to the Sustainable Markets Initiative, which enables the private sector to accelerate its transition to a sustainable future.
- BCG’s CO2 FI solution allows investors to measure greenhouse gas emissions financed by their investments.
-
CO2 AI, with 130 million tons of Co2e under management, enables investors to measure, track, and reduce their portfolio’s environmental footprint.
BCG Named a 2023 Global ESG & Sustainability Strategy Consulting Leader
IDC MarketScape evaluated 16 consulting firms, recognizing BCG for its strengths in CO2e mitigation, climate risk, materiality assessments, a growing social pillar platform, and a strong partner ecosystem.
Our Partnership with the Private Equity Industry
The ESG Data Convergence Initiative (EDCI) is a first of its kind, industry-led effort by the private equity community to drive convergence around meaningful sustainability metrics, and generate useful, comparable, performance-based data. BCG has supported the EDCI since its inception since 2021, and now our firm has taken on the role of the initiative’s long-term benchmarking and advisory partner.
Video
May 17, 2023
BCG’s Partnership with EDCI
Video
November 19, 2024
Private equity experts discuss the progress the EDCI has made in the industry to improve both the volume and the quality of sustainability data—which in turn, better positions private investors to identify value creation opportunities.
Our Insights on Sustainability in Private Equity
Report
May 6, 2025
A comprehensive map of opportunities in Climate A&R solutions shows that the market is primed for investors to act now.
Report
October 23, 2024
This year’s report reflects data from over 6,000 PE-backed companies, offering new insights on how sustainability in the private markets has evolved over the last year.
Report
October 23, 2024
Private equity-owned companies are taking steps to reduce their carbon emissions in both the long and short term. The key is establishing a decarbonization strategy and clear goals.
Article
June 7, 2023
To help the world reach net zero, investors need a clear and pragmatic way to gauge the carbon impact of the solutions they fund.
Meet Our Sustainability and Private Equity Experts
Explore related services
Capability
Sustainable Finance and Investing
Industry
Fund Strategy and Operations
Industry