Novata Launches ESG Due Diligence Solution

Private markets ESG-focused data solutions provider Novata announced the launch of its new ESG Due Diligence solution, aimed at helping deal professionals streamline sustainability-data collection and management in due diligence pre-investment workflows and post-deal monitoring.

According to Novata, the new solution enables users to request, review, and analyze sustainability data prior to investing, and to connect it post-deal, with the tool centralizing diligence workflows in one secure location, with applications including quickly assessing potential risks and opportunities and sharing sustainability data collected during diligence for portfolio monitoring on Novata’s platform.

Key features of the new solution highlighted by Novata include self-serve setup and secure access management across deal teams and targets, real-time comparison of diligence data to portfolio and market benchmarks, collaborative workflows for metric-level data review and targeted follow-up, digitized scoring, and integration with Novata’s monitoring platform to track performance over time.

Jessie Martin, Global Head of Advisory at Novata, said:

“While assessing sustainability factors has become a standard part of the investment process, traditional diligence workflows have historically been resource-intensive, disconnected from holding-period value creation, and lacking actionable outputs. Novata’s new offering delivers a pragmatic and cost-effective alternative that investment teams can adopt without burden or disruption.”

New York-based Novata is a public benefit corporation founded in 2021 to provide private markets investors with a solution for ESG measurement, data collection, benchmarking and reporting. It is backed by a consortium including S&P Global, the Ford Foundation, asset management firm Hamilton Lane, and social change-focused investment firm Omidyar Network.