As a public benefit corporation, Novata is committed to making it simple for private markets to collect, analyze, and report on the metrics that matter. Novata Benchmarks, a new feature in our data management platform, advances this commitment by providing critical insights for investors collecting ESG data.
In private markets, understanding how to harness environmental, social, and governance (ESG) data to create value for portfolio companies is quickly becoming a competitive advantage for investors. But ESG data can be complex to understand without context, making it essential for investors to have the necessary tools to analyze their portfolio’s data.
Novata Benchmarks are the private markets’ broadest collection of ESG benchmarks and provide an unprecedented view into performance on the metrics that matter. Novata Benchmarks include 50 universal ESG benchmarks and more than 200 sector-specific benchmarks for the 2022 reporting period. The sector benchmarks cover nine Sustainable Industry Classification System (SICS) sectors: Consumer Goods, Financials, Food and Beverage, Health Care, Infrastructure, Resource Transformation, Services, Technology and Communication, and Transportation.
Currently only available to contributors in the Novata platform, these benchmarks are built on de-identified and aggregated data from 2,000 companies in 23 countries reporting in-platform. We use both statistical analysis and internal experts to ensure the data is reliable, including reviewing data quality, achieving a minimum number of underlying data points per metric, and testing for variance across multiple dimensions. The library will grow organically as contributors continue to input data on the metrics that matter in the Novata platform.
Unlocking Value with Novata Benchmarks
Benchmarks are a critical tool for investors analyzing data. They provide a standard against which investors can measure performance across their portfolio, making it easy to answer questions such as “how are other companies like me doing?”.
Novata’s ESG benchmarks enable investors to review ESG data in context and compare portfolio company performance against peers in the private markets. Transparency into how each benchmark is developed also provides confidence in the applicability of the benchmark to a company’s unique characteristics.
With Novata Benchmarks, investors can:
- Unlock a fuller picture of the portfolio’s ESG performance with context into where portfolio companies are over- or under-performing relative to the ESG strategy.
- Set new standards for performance within the portfolio by identifying key opportunities to effectively mitigate risks and improve the financial value of portfolio companies.
- Make informed decisions on prioritizing opportunities, allocating available resources, engaging with portfolio companies, and refining their ESG strategies.
- Communicate value by contextualizing ESG performance and tracking the progress of ESG initiatives over time.
Start Benchmarking Your ESG Data With Novata
As the industry continues to evolve, benchmarks can be a critical source of actionable insights for investors looking to make the most of their ESG data. Learn more about Novata Benchmarks.
Novata Benchmarks (the “Benchmarks”) are intended for informational purposes only and are neither intended nor implied to be a substitute for professional advice. The Benchmarks represent industry averages and do not represent the specific performance of any individual company, fund, product, or service. Read the full disclaimer.