Public benefit corp Novata launches ESG platform

Public benefit corp Novata launches ESG platform

Apr 4, 2022 2 min read
  • New York-based public benefit corporation Novata launches platform for private markets, technology for the intelligent management of  Environmental, Social and Governance (ESG) data after late 2021 Series A, $21M
  • Backed by non-profit and for-profit organisations, Novata has drawn on a range of expertise, financial data, social and environmental justice to bring ESG to the forefront of private markets
  • Novata boasts a consortium that includes the Ford Foundation, S&P Global, Hamilton Lane, and Omidyar as well as the support of more than a dozen private equity and institutional investors

The New York-based public benefit corporation Novata has announced the official launch of its Environmental, Social and Governance (ESG) solutions platform for private markets. Novata aims to enable the intelligent management of ESG data through technology, intuitively and drive forward standardisation of metrics amid increasing regulatory scrutiny. Only last November 2021 Novata closed its Series A at $21 million.

Novata is backed by a consortium that includes the Ford Foundation, S&P Global, the private markets manager and solutions provider Hamilton Lane and the social change venture Omidyar Network. Novata says it also has the support of more than a dozen private equity and institutional investors.

Aiming to be ‘The ESG Solution for Private Markets,’ Novata provides GPs and portcos visibility of key ESG data that’s fully accessible on the platform’s customisable platform that collects data, reports and delivers clearer insights on data where currently consistency is… lacking, to say the least.

Novata’s announcement comes shortly after the SEC set out proposals for new rules in public markets alongside seemingly countless public- and private market-focused ESG/impact measurement announcements in recent weeks, most recently London-based Climate X.

Novata backer S&P Global has been hot on the case too. Just last week Conviction News highlighted the S&P CEO Doug Peterson’s open letter calling for better transparency and measurement of impact.

Image credit: Novata

Novata’s ESG data platform has been specifically designed for private markets, with general and limited partners in mind to manage their portfolios. Novata says its simplified model of data collection and metrics can be tailored to portco and investor needs.

Alex Friedman, CEO & Co-Founder at Novata:

“It’s clear we’ve reached an important inflexion 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 markets, laser-focused on helping private companies meet the ESG challenge.”

Lauren Peat, Chief Revenue Officer at Novata:

“GPs, LPs and their portfolio companies are looking for a clear, simple, and customised technology platform for seamless data collection, and this is exactly what Novata aims to deliver.”

Erik Hirsch, Vice Chairman and Head of Strategic Initiatives at Hamilton Lane:

“ESG expectations have evolved from a ‘trust me’ approach to a ‘show me’ one, the challenges for all market participants to be accountable and measurable to remain significant.”

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