The road to understanding and complying with the Sustainable Finance Disclosure Regulation (SFDR) can be daunting. Reflecting on a year of SFDR…

SFDR reporting is a novel process, and the pressure on investors to ensure compliance is high. This guide provides an overview of…

2023 was a milestone year for ESG regulations, as the EU’s SFDR came into effect. With the regulation’s first mandatory disclosure deadline…

A Report Compiled by Novata & Oliver Wyman Environmental, social, and governance (ESG) considerations are here to stay. Over the past 10…

Since its inception, growth investor Alfvén & Didrikson (A&D) has embedded ESG principles into its operations. Ieva Bruzaite, an Investment Associate, has…

Impact investing has traditionally been an avenue for private market investors to improve outcomes on environmental and social issues alongside generating financial…

Identifying the ESG metrics that matter to stakeholders is foundational to a company’s ESG journey. The Novata Metrics Guide provides visibility into…

Private markets have the capacity to improve societal outcomes, advance social equity, and raise awareness of the environmental impact caused by anthropogenic…

In European markets, investor demand and emerging regulations [such as the recently announced European Sustainability Reporting Standards (ESRS)] are driving increased transparency and…

In private markets, the ability to analyze ESG data is critical for investors to leverage the opportunities this data can provide. Benchmarking…

This month, Novata announced our B Corp Certification. As Head of Partnerships at Novata, this is a full-circle moment for me. When…

As we celebrate Novata’s two-year anniversary, I would like to thank our clients, partners, advisors, investors, and colleagues who have contributed to…

At private equity firm Piper, growing brands that focus on sustainability, specifically B Corps, is at the core of its mission. The…

Earlier this week, the International Sustainability Standards Board (ISSB) released its inaugural set of sustainability standards: IFRS S1 General Requirements for Disclosure…

In a traditionally opaque reporting landscape, ESG benchmarks are an essential tool for private market investors analyzing data from portfolio companies. ESG…

Novata’s recent benchmarks release provides essential insight into the metrics that matter to private market participants. The benchmarks are de-identified and aggregated…

As a public benefit corporation, Novata is committed to making it simple for private markets to collect, analyze, and report on the…

Carbon considerations have become an essential component of ESG reporting amid rising investor and regulatory interest in the impact of business practices on the environment.

As a company that provides an ESG reporting tool, sustainable design practices are crucial to Novata’s vision of creating a more sustainable…

In a recent Adams Street Partners study, 93% of limited partners (LPs) said that incorporating ESG considerations into decision-making enhances investment returns….

This article is the third in a three-part series on addressing biodiversity loss. Read the first two articles here: The adoption of…

Environmental, social, and governance (ESG) considerations are quickly becoming a non-negotiable component of investment decision-making. As private market investors seek to maximize…

Congratulations, you’ve collected ESG data across your portfolio. But how do you actually make sense of it? Analyzing and contextualizing ESG data…

As general partners (GPs) wrap up the ESG data collection process with portfolio companies, focus is shifting to how best to leverage the information. Environmental, social, and governance factors have become key considerations for investment decisions, with investors looking at this data to mitigate risks and increase the financial value of their portfolios.

To provide assurance on company reporting is to provide an independent conclusion or opinion on the reliability of the information or data. Pursuing third-party assurance has been a longstanding practice for companies seeking to provide transparency and instill confidence in their financial disclosures.

According to a 2021 EY study, 72% of private equity executives said they expected an ESG premium in companies they were considering exiting. Across the investment lifecycle, environmental, social, and governance (ESG) data provides insights that help investors assess risks and value-creation opportunities for portfolio companies.

It’s been a busy year since we launched the Novata platform: 60 private market investors and over 3,500 companies now access our platform. Clients have reported over 45,000 data points and submitted 1,328 reports — and the numbers are growing every day. 

In a recent analysis of ESG risk incidents, data science firm RepRisk found that one in five cases of corporate risk incidents were linked to greenwashing and misleading communications.

Environmental, social, and governance (ESG) considerations are increasingly informing how investors make decisions and assess the risks and opportunities across their portfolios. ESG data, paired with financial insights, provides a holistic view of each portfolio company’s risks and value-creation opportunities.

In 2015, the Paris Agreement set a clear pathway for the global effort to effectively and cooperatively fight climate change. In December 2022, a similar effort was put forth during the 15th Conference of Parties (COP 15) by businesses, governments, and civil society to address the detrimental issue of biodiversity loss.

As the world moves toward decarbonization targets, investors are increasingly paying attention to, and making decisions based on, climate considerations. As a result, companies must now grapple with how to approach carbon accounting and prepare to answer questions about how their facilities,

The Sustainable Finance Disclosure Regulation (SFDR) reporting season is now in full swing. The first annual Principal Adverse Impact (PAI) statement is mandatory for GPs to report on their websites by June 30, 2023, meaning underlying portfolio company data collection is currently in progress.

Today–Tuesday, March 14th–is Equal Pay Day, which marks how far into the year that women must work to earn what their male counterparts earned last year. Equal Pay Day exists to raise awareness for the gender pay gap that women face, earning an average of 82% of the compensation of a man

The process of building a startup inherently requires an effective allocation (and reallocation) of resources. When time, human capital, and money are all constrained, how can corporate leaders beginning their ESG journey ensure that their companies are on track for a more sustainable future? 

As regulators increase efforts to validate sustainability claims in financial markets, the EU’s landmark Sustainable Financial Disclosure Regulation (SFDR) is setting a precedent for other regions as they define and prioritize sustainability. 

Today we announced Novata has completed its Series B funding round, raising $30 million from a diverse and impactful group of investors….

Despite the rise in corporate commitments to diversity, equity, and inclusion (DEI), change doesn’t happen overnight, and gaps still exist in practice….

In 2022, the World Economic Forum ranked biodiversity loss as one of the top three risks facing our planet today. Biological diversity represents the variety of living things in an ecosystem, including its animals, plants, habitats, and sources of energy.

Private market interest in ESG is on the rise, but concerns around data quality and transparency continue to be a challenge for investors. In a 2021 FTSE Russell survey, 59% of global asset owners cited the lack of standardization in ESG data, scores, and ratings as the largest roadblock to increased adoption of sustainable investment.

More than ever, action on climate change needs to be a top priority for the global community. According to the World Economic Forum’s Global Risks Report, climate change is the largest long-term global risk our society faces today. The failure to mitigate climate change and protect people and ecosystems from its impacts are now the biggest global risks over the next 10 years.

Rising demand for ESG data continues to push these environmental, social, and governance criteria to the top of the agenda in private markets. According to Bain, LPs consider ESG additive to investment performance, and 70% say their organization’s investment policies include an ESG approach.  

In 2022, many private market participants developed a strategy to meet the increased interest in transparency on ESG issues from their stakeholders (LPs, employees, industry groups, etc.) Looking forward to 2023, we are highlighting 4 areas that we believe will be most relevant to ESG disclosure and integration in private markets. 

From changing regulations to rising backlash, 2022 has been a tumultuous year for ESG. However, one factor has remained steady: environmental, social, and governance considerations are crucial for businesses—and will only continue to grow in importance moving forward.

Since our work began over a year ago, Novata has been focused on empowering private markets to achieve a more sustainable and…

In private markets, environmental, social, and governance (ESG) considerations have evolved from a nice-to-have exercise to a critical aspect of business evaluation and growth.

ESG has quickly become a critical tool for investors to manage risks in the short term and account for future risks associated with a company. But to support this risk management tool, the need for standardized reporting on environmental, social, and governance factors continues to be a significant focus for LPs and GPs.

It’s often said that what gets measured gets improved, and the sentiment holds true for incorporating ESG in private markets. When building your ESG strategy, identifying what ESG indicators matter to you will be the backbone of your ESG journey and narrative. It will also inform how you engage with portfolio companies on environmental, social, and governance issues.

Novata recently hosted a webinar on the topic “How to Build an ESG Strategy for Private Equity.” This post includes insights from the webinar. Watch the replay here.

With ESG considerations gaining traction in private markets, a documented plan around ESG can help general partners (GPs) demonstrate…

This past September, Novata joined hundreds of limited partners (LPs), general partners (GPs), and senior decision-makers in the private equity and private credit spaces at a number of industry conferences. The events brought together leaders to share the latest perspectives on pressing issues in private markets, including ESG and Diversity, Equity & Inclusion (DEI). 

Driven by rising scrutiny from regulators, investors, and other stakeholders, private equity firms are strengthening their focus on ESG. In private markets, a focus on these environmental, social, and governance factors is a differentiator for general partners (GPs) interested in attracting limited partner (LP) investments and building sustainable companies…

In private markets, environmental, social, and governance (ESG) considerations are increasingly influential in how limited partners (LPs) assess and evaluate investment decisions. For instance, in a survey from INSEAD’s Global Private Equity Initiative, 89% of limited partners said that ESG criteria play a role in investment decisions. And 77% consider it as a criterion when screening fund managers…

Regulators across the globe have been increasingly mandating ESG disclosures for publicly traded and large organizations. These requirements inevitably will trickle down to their suppliers and actors in the private markets. In May, for instance, the SEC proposed climate disclosure requirements for public companies…

Environmental, social, and governance (ESG) issues have become key considerations for private equity firms amid pressure to incorporate these factors into business practices. From investors to consumers, stakeholders of all sorts are increasingly using ESG data to evaluate businesses and inform decisions…

While we can agree on overarching concepts common to all regions, ESG issues and risks are very region-specific. The ESG regulatory news cycles have been dominated by developments in the EU and the United States. We’d like to offer an introduction to ESG as it pertains to the regulation of Asian markets.

Record-breaking heat this summer is sounding the alarm on the urgent need to address climate change. From heat advisories to wildfire outbreaks and destroyed infrastructure, countries around the world are feeling the effects of extreme temperatures, which are becoming more common as global temperatures continue to rise.

Since day one – one year ago – the Novata team has focused on how to drive towards a more inclusive form of capitalism. As Chief Impact Officer and Head of ESG, I’ve been honored to work alongside a team that is deeply dedicated to our company’s mission.

This spring, the SEC proposed a new rule that would require publicly traded companies to disclose detailed information on their climate-related risks,…

Key events from 2020 have brought racial inequality to the forefront across the globe. Racial/ethnic diversity on boards is coming under increased scrutiny as calls come for boards to better represent corporate stakeholders (customers, employees, suppliers) and the evidence grows that diversity has a positive impact on an organization’s capacity to innovat

For this series of articles on water management, Novata spoke with Gonzalo Muñoz about global trends, opportunities, and risks. Gonzalo, a member of Novata’s ESG Advisory Council, has held several impactful posts, including serving as Chile’s representative to COP25. He is also the co-founder of TriCiclos, an innovative circular economy company based in Santiago.

In May, I represented Novata at the Sustainable1 Conference in Paris. The panel I participated in, ”Completing Data Gaps: Transparency Matters,” was focused on ESG data, specifically how to complete information gathering and modeling when it comes to ESG datasets.

Are you new to the term “ESG”, wondering what it is, and what you should be doing? Are you getting what seems like sudden pressure from investors to report on ESG performance? We are here to help. The reality is that ESG refers to a broad range of topics. All organizations already are responding to many ESG related concerns and have put in place ESG policies, especially with regards to Social practices. The question is therefore how to map existing efforts to a broader strategy and to track progress…

The SEC recently issued a new proposal to add standardized climate reporting to required disclosures by public companies. This reporting includes disclosing the risk climate change represents to the business, plans to lower emissions and total level of direct and indirect greenhouse gas emissions.

In March 2022, Novata’s Chief Impact Officer and Head of ESG Lorraine Wilson moderated a panel at the  Private Equity International’s Responsible Investment Forum in New York. Her session focused on the impact that Diversity, Equity, and Inclusion (DEI) policies and programs

Over the past two years, the COVID-19 pandemic has brought with it both challenges and opportunities for the world of work, and women especially – and in particular, women of color – have borne the brunt of these impacts.

In recent years, the mounting urgency of climate change has called for a clear understanding of businesses’ impact on our planet’s warming. Corporate disclosure on climate goals and impacts has been increasingly crucial in painting this picture.

2022 has started as a year marked by great uncertainty. Geopolitics is on edge in Europe and Asia, financial markets are exceptionally volatile, and the pandemic rages on with mutation after mutation. Yet, one thing is seemingly certain

Driven in large part by the COVID-19 pandemic, twenty million people in the U.S. left their jobs in the second half of 2021.

Reducing greenhouse gas emissions is a vital tool in combating climate change. Achieving carbon neutrality – net zero carbon emissions through overall…

Our goal is to help avoid fragmentation of ESG standards and better enable firms to assess their ESG performance—because a company can’t change what it can’t measure.