Northern Trust, a financial services firm, and Novata, an ESG data management software provider, have joined forces in a strategic partnership.
Northern Trust, known for its wealth management, asset servicing, asset management, and banking services, has made a significant move by incorporating Novata’s advanced ESG data solution into its service offerings.
Novata, a certified B Corporation and a public benefit corporation, specialises in streamlining ESG data management specifically for the private markets.
The rationale behind the partnership stems from a growing necessity for comprehensive ESG data assessment within investment portfolios. Northern Trust aims to enhance the clarity of ESG impacts of private companies for asset owners, simplifying the ESG data collection process both for investors and portfolio companies.
This integration is a key part of Northern Trust’s Whole Office strategy, which focuses on connecting clients with innovative technologies and services throughout the investment lifecycle.
Northern Trust, with its robust global architecture, offers a wide range of financial services, including asset and fund administration, fiduciary and banking solutions. Its Whole Office strategy underscores a commitment to integrate with forward-thinking partners like Novata to deliver top-notch data optimisation and investment performance.
Conversely, Novata brings to the table a technology platform enriched with over 800 ESG metrics aligned with global standards. This platform assists private market investment firms in managing their ESG risks and opportunities effectively. It provides tools and expert guidance for ESG data collection, reporting, benchmarking, and analytics, fostering a straightforward approach to ESG challenges faced by private companies.
The partnership will leverage Novata’s technology to offer Northern Trust’s clients a flexible and customised ESG reporting approach. This collaboration is expected to empower private market investors by providing them with the necessary tools to navigate ESG complexities confidently. By making Novata’s ESG solutions accessible to its clients, Northern Trust highlights its commitment to innovation and client empowerment in the investment domain.
In April 2023, Northern Trust underscored its commitment to this vision by participating in Novata’s Series B funding round. The collaboration promises to be a substantial stride towards more informed and sustainable investment decisions.
“Today, private companies and their investors face increasing pressures when it comes to issues of ESG and sustainability,” Alex Friedman, CEO & Co-Founder of Novata said. “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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