Novata pioneers new SFDR reporting tool for enhanced market transparency


Novata, a technology platform and certified B Corp, is offering a comprehensive ESG data solution specifically tailored for the private markets.

Their latest achievement is the expansion of SFDR capabilities, aiding clients in effortlessly complying with European regulatory standards.

The necessity for this new product stems from the increasing complexity of Sustainable Finance Disclosure Regulation (SFDR) compliance. SFDR is an EU regulatory initiative aiming to heighten transparency in investment product sustainability claims. Novata’s comprehensive SFDR solution includes features like data collection aligned with SFDR requirements, an in-platform PAI Automation Tool, and dedicated expert guidance.

Delving deeper into what Novata does, it is evident that their mission revolves around simplifying ESG data management and reporting. Their multi-faceted approach encompasses secure, multi-user data collection platforms, AI-powered tools, and expert support, making them a vital player in the private market’s infrastructure.

The new product, specifically, addresses the intricacies of SFDR reporting. It boasts a user-friendly platform where clients can easily gather SFDR-aligned data. The PAI Automation Tool within the platform facilitates end-to-end calculation, aggregation, and reporting of principal adverse impact (PAI) indicators, both at the fund and entity levels.

Additionally, Novata offers more than just tools. They provide a wealth of educational resources, from insights on required metrics and regulatory updates to best practices in reporting. Their team of ESG experts not only helps clients align with SFDR but also offers insights for value creation and improvements in data quality and completion.

Since its commercial launch in April 2022, Novata has seen substantial global demand, with over 5,300 private companies now using its platform. This success is attributed to its seamless data collection, exceptional support, and industry-leading benchmarks and analytics in ESG.

“SFDR reporting is an evolving process, and the pressure on investors to ensure compliance is high,” Josh Green, Chief Operating Officer and Co-Founder at Novata, said. “While navigating the complexities of SFDR can seem overwhelming, Novata’s comprehensive solution simplifies reporting and makes the process as efficient as possible.” “To ensure accurate reporting, it is important to establish a robust system for effective data management,”.

Lauren Peat, Chief Revenue Officer at Novata, said. “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.”

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