Northern Trust announced an agreement to offer Novata's ESG data management software to its asset-servicing clients. This initiative seeks to strengthen the ESG impact understanding while simplifying data collection for private companies. The platform, featuring clear definitions and tools for calculating ESG metrics, is complemented by support from ESG experts, as well as benchmarking and analytics, enabling contextual review and industry peer comparisons of the data.
Firstly, it's important to understand how this collaboration originates. Northern Trust's partnership with Novata, stemming from its investment in the company, extends the Whole Office strategy by incorporating Novata's data management solution. This integration aims to provide asset owners with a clearer understanding of the ESG impact of private companies on investment portfolios while simplifying the ESG data collection process. As part of the Whole Office approach, Novata's metric library, featuring over 800 metrics aligned with widely accepted standards, offers a straightforward starting point for ESG data collection and reporting according to a press release by Northern Trust.
As per Northern Trust's leadership perspective, "We are committed to a strategy that combines Northern Trust’s global architecture with innovative partners like Novata to help clients maximize the value of their data and optimize investment performance," said Pete Cherecwich, President of Asset Servicing at Northern Trust according to a press release by Northern Trust. "As the demand for ESG data continues to grow, we believe Novata's industry-leading technology platform will be a valuable tool for private market investment firms to evaluate and manage their ESG risks and opportunities. Through our Whole Office partnerships, Northern Trust clients across the globe can access advanced technology skills and services designed to help them make more informed decisions."
The CEO & Co-Founder of Novata, Alex Friedman also shared his views on this matter. "Today, private companies and their investors face increasing pressures when it comes to issues of ESG and sustainability," said Alex Friedman, according to a press release by Northern Trust. "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."