Congratulations to our colleagues Emily George and Ben Baxter, who co-authored BCG’s latest Sustainability in Private Markets report. It draws on data from nearly 10,000 portfolio companies in the ESG Data Convergence Initiative (EDCI).
The report reveals three key takeaways:
📈 Progress continues. Companies with a decarbonization strategy rose 7pp in a year, and those with a short-term emissions target rose 8pp.
💰 Sustainability moves the numbers. General partners (GPs) estimate it lifts portfolio company EBITDA by 5-7% over the hold period, through higher revenues and lower costs.
🎯 AI governance is the next test. Only 50% of GPs assess AI risks at their portfolio companies, and portfolios whose GPs actively monitor these risks show 6pp higher revenue growth.
👇 How could your portfolio close the AI governance gap? Read the full report
🤝 Our thanks also go to co-authors Vinay Shandal and Ben Morley, and to the wider BCG team and EDCI community whose collaboration made this work possible.
