Northern Trust, a US-based asset servicing and investment management firm, has stepped into 2024 with a significant enhancement in ESG capabilities.
This advancement comes following their investment in the private-market data startup, Novata, last year.
According to ATeam Insight, the catalyst for this new product is the burgeoning demand for robust ESG data, particularly from large investors such as endowments and foundations. With private markets making up a substantial portion of financial institution investments, Northern Trust’s decision to partner with Novata is timely and strategic.
Northern Trust’s core business revolves around providing comprehensive asset servicing and investment management solutions. Their expertise in these domains is well-recognized in the financial sector.
The new product is a sophisticated ESG data management solution, integrated into Northern Trust’s offerings. It grants clients access to critical sustainability data and analytics, aiding them in assessing the ESG performance of their portfolios.
Novata’s ESG benchmarking and data collection services are pivotal in this partnership. They offer tools for sustainability assessment in private-market portfolios, a domain currently underserved in terms of ESG data availability.
Further enriching this collaboration is Novata’s unique approach and experienced team. Despite being a relatively new player, established in late 2021, Novata has quickly established a reputation for innovation and expertise in ESG data management.
Paul Fahey, Northern Trust’s head of investment data science, asset servicing, emphasized Novata’s uniqueness and the value they bring. He highlighted the combination of technology and expertise at Novata, which enables the delivery of quality ESG data and meaningful insights to clients.
In conclusion, this partnership between Northern Trust and Novata represents a significant step forward in ESG data management for private markets. It underlines Northern Trust’s commitment to sustainable investment practices and positions them as a frontrunner in integrating ESG considerations into investment strategies.
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