Novata, a leading sustainability management partner for private markets, has announced the launch of its new ESG Due Diligence solution.
Novata is known for supporting investors to integrate sustainability into their operations, and is focused on continuing to drive innovation in sustainability data management.
The new ESG Due Diligence solution was created to address the increasing demand for efficient, centralised sustainability assessments during the investment process. Traditional diligence workflows have often been resource-intensive and fragmented, lacking clear connections between pre-investment assessments and ongoing portfolio monitoring.
The firm provides a platform designed to make sustainability data collection, management, and reporting easier for private markets participants. Its mission is to empower private markets to achieve a more sustainable and inclusive form of capitalism, offering technology and advisory services that enable smarter ESG practices.
Novata’s new solution allows deal professionals to request, review, and contextualise sustainability data within a single, secure environment. It centralises the diligence process by streamlining data collection, analysis, and sharing, offering a seamless connection between pre-investment diligence and post-deal portfolio monitoring.
Key features of the new ESG Due Diligence solution include a self-serve setup, secure access management, real-time benchmarking against portfolio and market standards, collaborative workflows for data review, digitised scoring outputs, and full integration with Novata’s monitoring platform. This holistic approach helps users quickly identify potential risks and opportunities, creating an efficient and transparent investment lifecycle.
By combining intuitive technology with optional advisory services, Novata’s solution significantly reduces the cost and complexity of ESG diligence while linking sustainability data directly to financial outcomes over the investment holding period.
Jessie Martin, global head of advisory at Novata said, “While assessing sustainability factors has become a standard part of the investment process, traditional diligence workflows have historically been resource-intensive, disconnected from holding-period value creation, and lacking actionable outputs. Novata’s new offering delivers a pragmatic and cost-effective alternative that investment teams can adopt without burden or disruption.”
Patrick Crowley, head of product, investors at Novata said, “We designed the platform to meet deal teams where they are. With an intuitive setup to automated insights, It’s a smarter, scalable approach that makes sustainability diligence a natural part of the investment lifecycle.”
Back in 2023, Novata scored $30m in a Series B raise. The round was led by Hamilton Lane and saw participation from the Ford Foundation and S&P Global.
In addition, Microsoft joined the investor consortium through its Climate Innovation Fund. Partners and managing directors from companies such as Clearlake Capital, Lindsay Goldberg, The Vistria Group, Canson Capital Partners and Hellman & Friedman.
Elsewhere in the ESG space, SustainoMetric recently launched a new Supply Chain Due Diligence service aimed at helping businesses address increasing volatility in global trade and supply chains.
The sustainability research firm is offering this solution as a way to equip organisations with the insights needed to strengthen supply chain resilience and enhance long-term strategic planning.
In other news in the industry, Canada’s top securities regulators have paused efforts to introduce mandatory climate-related and diversity-related disclosure rules, marking a notable shift in the country’s sustainability reporting agenda.
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