Technology platform Novata announced the launch of its ESG data management platform aimed at enabling private markets players to collect and report on portfolio companies’ ESG metrics and impact.
Novata is a public benefit corporation founded last year by a consortium including S&P Global, the Ford Foundation, asset management firm Hamilton Lane, and social change-focused investment firm Omidyar Network, and supported and advised by several leading private equity firms and pension funds.
Erik Hirsch, Vice Chairman and Head of Strategic Initiatives at Hamilton Lane, said:
“We fully support Novata’s mission to simplify the process of ESG data collection for the private markets. While investors’ ESG expectations have evolved from a ‘trust me’ approach to a ‘show me’ one, the challenges for all market participants to be accountable and for their ESG data to be measurable remain significant. Technology can allow for better collection and consumption of that data without imposing on the ‘one size fit all’ approach that’s existed historically. Novata is that technology.”
According to Novata, the platform was informed by the needs of general partners (GPs) and limited partners (LPs), and driven by increasing interest in ESG in private markets, coupled with the challenges for market participants to collect and measure ESG data.
Lauren Peat, Chief Revenue Officer at Novata, said:
“GPs, LPs and their portfolio companies are looking for a clear, simple, and customized technology platform for seamless data collection, and this is exactly what Novata aims to deliver.”
The new platform is designed to provide users with clear ESG metrics definitions, practical guidance on which metrics to collect and how to calculate them, offering a clearer view of the ESG impact of private companies, and simplifying the ESG data collection process for investors and portfolio companies. Key metrics offered and tracked by the platform include environmental categories –GHG emissions, renewable energy use, and water/wastewater management, social issues –engagement, diversity & inclusion, employee health & safety, and data security – and governance factors, such as board diversity, business ethics, corruption & bribery, and systemic risk management.
Alex Friedman, CEO & Co-Founder at Novata, said:
“It’s clear we’ve reached an important inflection point for ESG in the private markets – private companies and their investors face escalating pressure to describe the impact they have on people and the planet. Our platform offers a holistic solution for the gap in private market players’ ability to collect, store, effectively analyze and report on relevant ESG data, and we are laser focused on helping private companies meet the ESG challenge.”