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1、Sustainability in Private MarketsHow Staying the Course Creates ValueOCTOBER 2025INTRODUCTIONPrivate markets continue to create value through sustainability initiativesSources:EDCI member interviews,BCG analysis.Increasing privatemarket convergence on sustainability reporting BCGs third annual repor
2、t onsustainability in the private marketsdraws on data from 9,000+portfoliocompanies and 320 general partners(GPs)participating in the ESG DataConvergence Initiative(EDCI).This years analysis of the wealth of datagenerated unlocks significant insights onthe role of the private markets indriving sust
3、ainable value creation.Private markets continueto drive progress during ownership period We observe that PE-held companiescontinue to effectively drive progresson both the environmental andsocial fronts.These companies are makingimprovements during the ownershipperiod across metrics as diverse asdec
4、arbonization,renewable energyusage,and diversity.The resulting performance gainsare real On average,EDCI member GPs observe EBITDA increases of 4%to 7%from sustainability-linked initiatives over the lifetime of an investment.Key areas of sustainability-linked value creation include decarbonization a
5、nd strengthening the employee experience,where efforts are driving cost savings,strengthening revenues,and reducing risks.Sources:EDCI 2025 annual member survey(n=153);BCG analysis.Note:EBITDA$uplift is an inferred estimate based on additive impact of revenue growth and cost reductions.Assumes reven
6、ue growth is on average margin-neutral with cost savings fully flowing through to EBITDA(will vary by portfolio company based off margin structure and actions taken).GPs estimate that sustainability drives 4%to 7%in realized EBITDA growth over the hold period of their portfolio companiesAVERAGE EXPE