Novata Expands Core Capabilities to Address SFDR Reporting for Private Markets

November 15, 2023 at 08:00 AM EST

Available capabilities include full-service digital data collection, PAI automation tool, SFDR experts and education resources

Novata, an innovative technology platform and certified B Corp that provides the private markets with a comprehensive Environmental, Social, and Corporate Governance (ESG) data solution, today announced its expansion of SFDR capabilities available to Novata clients to simplify reporting against European regulatory requirements.

The Sustainable Finance Disclosure Regulation (SFDR) is an EU regulatory initiative designed to improve transparency in sustainability claims of various investment products. Novata’s comprehensive SFDR solution includes:

Data collection aligned with SFDR requirements
- Novata simplifies the process of collecting SFDR-aligned data with our secure, multi-user platform that includes built-in guidance, AI-powered guardrails, and expert support.
- PAI Automation Tool: Novata’s in-platform, digitized PAI reporting tool delivers an end-to-end solution to calculate, aggregate, and report on principal adverse impact (PAI) indicators at both the fund level and entity level.
Expert Guidance
- Novata’s dedicated team of ESG experts deliver unparalleled guidance to enhance SFDR alignment and provide support from identifying potential fund classifications through to PAI readiness assessments, portfolio company data checks, and PAI Statement reviews.
- Our specialists provide meaningful insights to highlight trends and opportunities for value creation, and enable improvements in data availability, quality, and completion.
Educational Resources
- Novata’s original, in-depth content serves as a guide through the SFDR reporting process, providing insights on required metrics, regulatory updates, and reporting best practices.

“SFDR reporting is an evolving process, and the pressure on investors to ensure compliance is high,” said Josh Green, Chief Operating Officer and Co-Founder at Novata. “While navigating the complexities of SFDR can seem overwhelming, Novata’s comprehensive solution simplifies reporting and makes the process as efficient as possible.”

Since its commercial launch in April 2022, Novata has experienced significant global demand, with more than 5,300 private companies contracted to use the platform. Novata’s seamless and secure data collection, dedicated support and expertise, and industry leading ESG benchmarks and analytics provides critical market infrastructure for the private markets.

“To ensure accurate reporting, it is important to establish a robust system for effective data management,” said Lauren Peat, Chief Revenue Officer at Novata. “Leveraging appropriate tools and technology to ease the burden on internal teams will be crucial in complying with regulatory requirements as this transitions to an annual process.”

To learn more about Novata’s SFDR offerings, visit the website and follow Novata on LinkedIn to keep up with the company’s latest news and insights.

About Novata

Novata is a certified B Corporation that empowers the private markets to achieve a more sustainable and inclusive form of capitalism. Novata’s technology platform makes navigating the ESG landscape simple for private markets by identifying a clear starting point for selecting the metrics that matter, streamlining data collection, and contextualizing data to drive reporting and action. Novata serves more than 5,000 companies in over 20 countries and is backed by the Ford Foundation, Hamilton Lane, Microsoft, Northern Trust, Omidyar Network, and S&P Global. For more information, please visit https://www.novata.com/.