SFDR Simplified
Why Partner with Novata for SFDR?
Goodbye Excel Spreadsheets
Ditch the outdated manual processes and rely on Novata’s secure, intuitive platform to generate PAI Statements that meet regulatory standards with ease.
Monitor & Improve Over Time
Collect, analyze, and track SFDR metrics across your portfolio companies. Show real, measurable improvement year-over-year with benchmarks and analytics.
Expert Guidance and Support
Access tailored guidance for classification readiness, as well as best practices to navigate the nuances of SFDR, from our expert advisors.
Our Commitment to SFDR Simplicity
Novata’s platform makes SFDR data collection and PAI reporting simple.
- Data Collection & Review: Identify and correct missing or inaccurate data.
- Automatic Calculations: Use our purpose-built PAI Statement Builder
- Calculation Transparency: See exactly how each PAI is calculated.
- Version History: Track changes and maintain full auditability.
- Raw Data Download: Gain granular insights for deeper analysis.
How It Works
Step 1: Classification Readiness
- Take Novata’s Classification Readiness assessment to determine how your funds may be classified under the evolving SFDR framework.
- Work with our SFDR experts in Novata Advisory to understand the relevant frameworks, processes, and policies to put in place and the indicators to collect.
- Get a tailored implementation roadmap and checklist to support your next steps.
Step 2: Data Collection
- Upload investment data and gather data from your portfolio companies with Novata’s easy-to-use SFDR framework request workflow.
- Leverage our data review tools and Data Review Advisory solution to ensure you have collected the correct data.
- Fill in data gaps with Novata’s Proxy Estimator, which provides sector-based proxy values for PAI indicators, documented methodology, and assumption transparency.
Step 3: PAI Statement
- Use Novata’s PAI Statement Builder to create your PAI statement, complete with the calculations, explanations, and actions taken.
- Leverage Novata Advisory to review your disclosures, provide feedback, and identify actionable items to strengthen your SFDR reporting.
I am writing, first, to let you know that the past few months working with the Advisory and Customer Success team that our ESG, SFDR, and climate-related disclosures have gone great. The feedback we received from our portfolio companies has been very positive and the SFDR tool and Advisory’s SFDR support saved us an incredible amount of time with our PAI Statement and periodic disclosures. As a result of this positive experience, we have decided to extend the use of the platform to our broader portfolio rather than one fund.
Growth-equity firm investor, $80Bn+ AUM
Stay Ahead of SFDR 2.0
SFDR is evolving. The European Commission’s proposed SFDR 2.0 amendments replace the Article 6, 8, and 9 structure with three new product categories: Sustainable, Transition, and ESG Basics. Novata is tracking every development and will update our platform and guidance as the regulation progresses, so you’re always prepared for what’s next.
FAQ
SFDR (Sustainable Finance Disclosure Regulation) is an EU regulation requiring financial market participants, including asset managers and fund managers, to disclose how sustainability risks and Principal Adverse Impacts (PAIs) are integrated into their investment decisions and products. SFDR 2.0, proposed by the European Commission in November 2025, introduces further requirements including a formal framework for the use of proxy and estimated data.
Under SFDR, funds are classified by their sustainability characteristics. Article 8 funds promote environmental or social characteristics. Article 9 funds have a sustainable investment objective. Each classification carries specific disclosure and data collection requirements.
A Principal Adverse Impact (PAI) Statement discloses how a fund’s investments negatively affect sustainability factors such as climate, environment, and social issues. Financial market participants with more than 500 employees are required to publish one; others may do so voluntarily.
Novata provides end-to-end SFDR support from Classification Readiness assessments to determine Article 8 or 9 eligibility, to portfolio-level data collection, PAI Statement generation, and proxy data estimation for private market holdings. Expert advisory and a dedicated customer success team guide firms through every step, replacing manual spreadsheet processes with a secure, auditable platform.
Novata’s PAI Statement Builder is a platform tool that automates the creation of SFDR-compliant PAI Statements. It handles investment data uploads, sends data requests to portfolio companies, performs regulatory calculations with full transparency, and produces a complete statement including explanations and actions taken.
Novata’s Proxy Estimator provides sector-based proxy values for PAI indicators when direct company-reported data is unavailable, drawing on a proprietary dataset of over 7,000 companies. It includes documented methodology, transparent assumptions, and a principled approach to data gaps. This directly aligns with SFDR 2.0’s Article 12a, which formalizes proxy data use and requires FMPs to produce defensible, documented estimation methodologies on investor request.
Ready to Simplify SFDR Compliance?
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You’ll learn how Novata’s solutions can help you efficiently manage your PAI Statements and overall regulatory obligations.