Novata Adds SFDR Reporting Capabilities to Private Markets ESG Data Platform

Private markets ESG-focused data solutions provider Novata announced the expansion of its platform’s SFDR capabilities, aimed at enabling clients to simplify reporting against European regulatory requirements.

The EU Sustainable Finance Disclosure Regulation (SFDR) establishes harmonized rules for financial market participants on transparency regarding the integration of sustainability risks and the consideration of adverse sustainability impacts in their processes and the provision of sustainability‐related information with respect to financial products.

One of the regulation’s key requirements, and among the most challenging for asset managers, is for reporting on Principal Adverse Impact (PAI) that investment decisions have on a broad range of sustainability factors, such as climate and environment, as well as socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. and employee matters, respect for human rights, anti-corruption and anti-bribery aspects.

Novata is a public benefit corporation founded in 2021 by a consortium including S&P Global, the Ford Foundation, asset management firm Hamilton Lane, and socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. change-focused investment firm Omidyar Network, and supported and advised by several leading private equity firms and pension funds, to provide private markets investors with a solution for ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. measurement, data collection and benchmarking, and enable reporting on ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. data.

With the expansion of the platform’s capabilities, Novata’s SFDR solution now includes data collection aligned with SFDR requirements, a PAI Automation Tool enabling calculation, aggregation and reporting on PAI indicators at the fund and entity level, as well as expert guidance to enhance SFDR alignment, support and insights, as well as educational resources on required metrics, regulatory updates, and reporting best practices for the SFDR reporting process.

Josh Green, Chief Operating Officer and Co-Founder at Novata, said:      

“SFDR reporting is an evolving process, and the pressure on investors to ensure compliance is high. While navigating the complexities of SFDR can seem overwhelming, Novata’s comprehensive solution simplifies reporting and makes the process as efficient as possible.”