Novata, a leading sustainability management platform for private markets, announced a strategic collaboration with Microsoft on July 8, 2025, to scale its AI-powered sustainability solutions globally, targeting small and mid-sized enterprises (SMEs). By leveraging Microsoft Azure AI Foundry, including Azure AI Search, and Microsoft Fabric, Novata aims to streamline sustainability data management, carbon accounting, and regulatory reporting for Microsoft’s SME customers and supply chain partners.
Announced: July 8, 2025, New York, NY.
Collaboration Focus: Expand Novata’s platform access, co-develop AI tools, and enhance supply chain ESG reporting.
Technology: Utilizes Microsoft Azure AI Foundry and Microsoft Fabric for efficiency.
Market Impact: Targets SMEs within the $350B global ESG market, serving 10,000+ companies.
Microsoft’s Role: Key sales partner via SME channels; investor through Climate Innovation Fund since 2023.
Novata’s Reach: Manages $12T+ in assets across private equity, credit, and venture capital.
The partnership focuses on three key pillars:
Platform Access: Microsoft will distribute Novata’s solutions, including the Carbon Navigator, through its SME channels, making ESG tools more accessible.
AI Co-Development: Novata and Microsoft will create AI-powered tools to simplify data collection and reporting, enhancing accuracy and value creation.
Supply Chain Reporting: Novata’s platform will help Microsoft suppliers meet climate reporting requirements, improving transparency and compliance.
Alex Friedman, Novata’s CEO and Co-Founder, stated, “This collaboration expands our global reach and strengthens our commitment to providing trusted technology that simplifies sustainability data management, helping companies unlock growth opportunities.” Jeremy Pitman, Microsoft’s Director of Partner Development, added, “Our collaboration with Novata will enable a key segment of our clients to seamlessly and affordably integrate cutting-edge sustainability technology into their operations.”
Since its 2022 launch, Novata has served over 10,000 companies and hundreds of general partners managing $12 trillion in assets. Its platform streamlines ESG data collection, carbon accounting, and regulatory reporting, with tools like the Carbon Navigator simplifying Scope 1, 2, and 3 emissions tracking. As a certified B-Corp, Novata aligns with Microsoft’s sustainability goals, reinforced by its inclusion in Microsoft’s Climate Innovation Fund since 2023.
The global ESG market, valued at $350 billion, is driven by increasing regulatory demands like the Corporate Sustainability Reporting Directive (CSRD). SMEs often face resource constraints in ESG compliance, which Novata’s AI-driven tools address by reducing complexity and costs. Posts on X highlight the partnership’s potential to democratize sustainability solutions, though adoption depends on cost and ease of use.
This collaboration positions Novata to lead in sustainable private markets, leveraging Microsoft’s global reach to drive measurable environmental impact.
Novata is the private markets’ sustainability management partner. We empower hundreds of investment firms and over 10,000 companies to achieve their sustainability goals with our trusted data management platform and advisory practice—because it’s good for business and it’s good for the planet.
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