Ahead of the 2026 reporting season, the ESG Data Convergence Initiative (EDCI) has released its annual guidance updates for reporting organizations. Each year, thousands of portfolio companies—as well as GPs and LPs—collect EDCI data points for submission by the following April. This data is then validated by EDCI and incorporated into annual benchmarks for member use.
Novata is proud to be an EDCI ESG Data Platform Partner, enabling members to view EDCI insights directly on the Novata platform. We make it easy for investors and companies to report to EDCI through clear guidance, data collection support, data quality checks, and API integrations.
The latest updates add new optional metrics and provide clarifications on existing metrics to increase transparency in reporting.
Highlights from the 2026 EDCI Updates
Novata has already implemented the following four updates in our platform:
1. Introduction of a new non-core/optional cybersecurity metric.
Cybersecurity ranked consistently high among sustainability topics for GPs and LPs, according to EDCI’s member surveys. After months of deliberation and careful review, following EDCI’s guiding principles, members voted by a slim majority to add a cybersecurity metric to the framework—enhancing transparency, enabling benchmarking, and strengthening oversight. The new metric is:
Which of the following activities does your organization conduct as part of a proactive cyber vulnerability management program? Please select all that apply.
- Scheduled vulnerability scans
- Penetration testing (i.e., human-facilitated testing)
- Software development lifecycle security testing (e.g., static/dynamic code analysis, software composition analysis, etc.)
- Other (please specify)
- We do not have a cyber vulnerability management program
EDCI members selected this metric for its forward-looking approach and its ability to provide insight into a range of potential security measures. This metric is optional but encouraged for 2026 reporting.
2. Clarification on Scope 3 emissions materiality.
A new optional question asks whether the entity’s Scope 3 emissions comprise 40% or more of total emissions, providing valuable context for emissions and target reporting. The Science Based Targets Initiative (SBTi) requires companies to set near-term Scope 3 targets when this threshold is met, which applies to the vast majority of companies. The Private Markets Decarbonization Roadmap also follows this rule for companies to maintain alignment.
3. Added details on external validation of short-term GHG reduction targets.
EDCI updated answer choices to allow reporters to clarify if their Paris-aligned, short-term emissions reduction target has been validated by a third party, such as SBTi. Members supported this change for its added rigor and noted it required minimal additional effort, since many GPs already track this data.
4. New optional “attribution factor” column for financed emissions calculations.
An attribution factor quantifies the portion of a company’s emissions that can be attributed to a financial institution, based on the institution’s share of the company’s total financing. Many LP members already collect this data. The new column in the EDCI submission template automatically calculates the attribution factor using information already required in the Sustainable Finance Disclosure Regulation (SFDR) of a reporter’s submission, though users can manually enter it if preferred.
Looking Ahead: Pilot on Commercial Outcomes
EDCI also introduced a new optional worksheet to begin testing data collection for the “Commercial Outcomes” of EDCI topic areas. This pilot is designed for firms interested in exploring how progress on sustainability metrics correlates with value creation. EDCI’s Commercial Outcomes Working Group will continue refining this approach in future guidance cycles.
Reporting to EDCI with Novata
The ESG Data Convergence Initiative remains one of the most widely-used frameworks among Novata users for collecting and reporting sustainability data. As an official EDCI Data Platform Partner, Novata supports EDCI and its members in their mission to standardize and simplify ESG data collection across private markets.
Novata handles the heavy lifting of interpreting EDCI guidance and embedding EDCI validations into our technology solutions, enabling EDCI members to view their insights directly on the platform, save time on reporting, and drive impact for their organizations. Learn more about how Novata supports data collection across the private markets.
