Microsoft has announced a strategic collaboration with Novata, a data solutions provider focused on ESG (Environmental, Social, and Governance) metrics, to enhance sustainability data solutions for small and medium enterprises (SMEs). This partnership includes plans to co-develop AI-driven tools to aid smaller companies, including Microsoft suppliers, in climate reporting.
Novata, a public benefit corporation founded in 2021 by S&P Global, the Ford Foundation, Hamilton Lane, and Omidyar Network, provides ESG measurement and reporting solutions for private markets investors. Its platform is utilised by hundreds of general partners in private equity, growth equity, private credit, and venture capital, and over 10,000 companies.
In 2023, Microsoft invested in Novata through its Climate Innovation Fund as part of a $30 million funding round. Alex Friedman, CEO and Co-Founder of Novata, expressed enthusiasm for the collaboration, highlighting Microsoft’s leadership in addressing climate change and leveraging AI for societal benefit. The partnership aims to expand Novata’s global reach and enhance its sustainability data management technology.
The collaboration will see Microsoft and Novata co-develop AI-powered tools to streamline sustainability data collection and reporting. Novata will utilise Microsoft Azure AI Foundry and Microsoft Fabric to enhance its sustainability solutions and data management processes.
Microsoft will also act as a key sales partner for Novata within its SME channel, facilitating access to Novata’s platform and solutions. Furthermore, Novata will support Microsoft in supply chain reporting by equipping Microsoft suppliers with tools to track and report sustainability metrics, thereby meeting their climate reporting obligations.
Jeremy Pitman, Director of Partner Development at Microsoft, emphasised the dual role of addressing climate change as both a responsibility and a business opportunity. He noted that the collaboration with Novata will enable clients to integrate advanced sustainability technology affordably, helping them reduce carbon footprints and achieve emissions targets.
