Northern Trust (Nasdaq: NTRS) has forged a strategic partnership with Novata, the ESG data management software solution provider, as a result of its participation in the Series B funding round for the certified B Corporation. This collaboration will allow Northern Trust asset servicing clients to access Novata’s cutting-edge ESG data management software.
Novata, founded as a public benefit corporation by a unique consortium of non-profit and for-profit organizations, has developed a state-of-the-art platform that streamlines and simplifies ESG data management for the private markets. In addition to its technology, Novata offers expert guidance, market-leading benchmarking, and hands-on support from ESG professionals.
The move reflects Northern Trust’s commitment to enhancing its Whole Office strategy, aimed at providing asset owners with a comprehensive view of the ESG impact of private companies on investment portfolios. This strategic alignment will also streamline the ESG data collection process for both investors and portfolio companies, thus facilitating more informed decision-making.
What is Novata ESG Data Library?
Novata’s extensive metric library, which includes over 800 metrics aligned with widely accepted standards and frameworks, simplifies the ESG data collection and reporting process. These metrics encompass environmental factors such as greenhouse gas (GHG) emissions, renewable energy use, and water/wastewater management, as well as social categories like employee engagement, diversity & inclusion, and data security. Governance-related metrics cover aspects like board diversity, business ethics, corruption and bribery, and systemic risk management.
Novata’s adaptable platform allows users to tailor their ESG reporting approach, focusing on the specific metrics that are most relevant to their unique circumstances and stakeholders. With this strategic partnership, Northern Trust aims to empower its clients with the tools and insights necessary for informed, sustainable investment decisions within the evolving landscape of ESG investing.
“We are committed to a strategy that combines Northern Trust’s global architecture with innovative partners like Novata to help clients maximize the value of their data and optimize investment performance,” said Pete Cherecwich, President of Asset Servicing at Northern Trust. “As the demand for ESG data continues to grow, we believe Novata’s industry-leading technology platform will be a valuable tool for private market investment firms to evaluate and manage their ESG risks and opportunities. Through our Whole Office partnerships, Northern Trust clients across the globe can access advanced technology, skills and services designed to help them make more informed decisions.”
“Today, private companies and their investors face increasing pressures when it comes to issues of ESG and sustainability,” said Alex Friedman, CEO & Co-Founder of Novata. “The Novata platform offers an enterprise solution for private market investors to collect, store, analyze and report on relevant ESG data, equipping its users to meet their sustainability challenges with ease and confidence.”
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