As part of Novata’s ongoing commitment to support the private credit industry in navigating sustainability data collection efforts, we recently partnered with iCI’s Private Credit Working Group to develop the Environmental Readiness Metrics Table. This resource is designed to help iCI members meet the growing demand for transparency and streamline their environmental reporting processes in alignment with global standards and regulations.
We chatted with Caitlin Pentifallo, Novata’s Head of Regulatory Strategy and Sustainability, to discuss how this partnership came to life and the value it brings to the private credit industry.
Partnership Origins
The partnership between Novata and iCI’s Private Credit Working Group was catalyzed by Jeff Cohen from Oak Hill Advisors, who chairs the iCI working group. Recognizing the challenges in data interoperability and transparency within private credit, Jeff sought to harmonize environmental metrics across various stakeholders. His familiarity with Novata’s expertise in sustainability metrics and benchmarks inspired him to approach Novata for collaboration.
Developing the Environmental Readiness Metrics Table
Caitlin and her team led the development of the Environmental Readiness Metrics table by conducting extensive research into commonly requested environmental metrics from sponsors and lenders. Through multiple iterations and feedback from iCI’s Private Credit Working Group, crafted a list of metrics that would align with various global standards, such as EDCI, IDP, and SFDR.
Novata utilized internal dashboards and tools to analyze popular metrics across different geographies and industries, ensuring that the final table reflected the most relevant and actionable environmental data for private credit firms.
“We refined the table to focus on the most widely used and impactful environmental metrics, ensuring it was a practical tool to help firms align with existing expectations and regulations,” Cailtin said.
Navigating Industry Challenges
One of the key challenges private credit firms face is the lack of leverage to request environmental data directly from portfolio companies. Unlike private equity firms, which can require specific data from their owned companies, private credit lenders often have limited control. The Environmental Readiness Metrics table addresses this challenge by focusing on what sponsors are already tracking, aligning with private credit firms’ needs for relevant, actionable data. By presenting a clear set of standardized environmental metrics, the table streamlines reporting and reduces the burden on lenders, enabling them to meet stakeholder requests without reinventing the wheel.
“Rather than asking companies for data they may not have, lenders can now reference the same metrics that private equity sponsors are already collecting,” Caitlin added. “This approach enhances efficiency, reduces reporting burdens, and ensures that the data lenders receive is both relevant and actionable.”
Commitment to Clarity
Novata is always open to collaborating with partners to simplify the sustainability reporting landscape. Whether through advisory services or co-developing tailored solutions, Novata excels at transforming complex, technical metrics into actionable and easily understood insights.
“One of our biggest differentiators is that it’s never just about the technology,” Caitlin noted. “We’re committed to helping our clients navigate this space beyond just a data platform. We’re strategic partners, thought leaders, and we work closely with clients to ensure they have the insights and tools needed to comply with evolving sustainability regulations.”
To learn more about accessing the Environmental Readiness Metrics table on the Novata platform, iCI members can reach out to us here. This partnership is just one example of how Novata turns regulatory complexity into actionable insights. Another is our newly launched Regulatory Navigator—a free tool that helps companies instantly identify which sustainability regulations apply to them. Try it out here.
