Microsoft Joins Forces with Novata to Deliver Sustainability Data and Reporting Tools for Small and Medium-Sized Enterprises and Their Suppliers
Microsoft has joined forces with sustainability technology provider Novata in a strategic collaboration aimed at scaling AI-powered sustainability data management and climate reporting solutions for small and medium enterprises (SMEs) worldwide.
The partnership, which was announced recently, leverages Microsoft's technologies such as Azure AI Foundry, Azure AI Search, and Microsoft Fabric to enhance Novata's platform capabilities. This collaboration enables SMEs to better collect, manage, and disclose climate-related data more efficiently.
Key aspects of this partnership include Microsoft acting as a key distribution partner, helping expand access to Novata's sustainability platform and its flagship tool, the Carbon Navigator, across its SME customer and supply chain channels worldwide. The collaboration also involves co-development of AI-powered tools to streamline sustainability data gathering and climate reporting processes.
Novata will support Microsoft's suppliers in tracking, managing, and reporting emissions data more accurately and affordably, addressing increasing regulatory and investor demands for transparent climate risk disclosures. The collaboration is designed to empower businesses to reduce their carbon footprints and meet their emissions goals.
Novata's CEO and Co-Founder, Alex Friedman, expressed excitement about deepening the relationship with Microsoft, noting that the company has been a leader in addressing the climate crisis and leveraging AI for good. Jeremy Pitman, Director of Partner Development at Microsoft, emphasized the collaboration's focus on addressing climate change as a business opportunity.
The collaboration between Novata and Microsoft is aimed at expanding global reach and strengthening commitment to providing trusted technology for sustainability data management. Novata's platform, currently used by hundreds of GPs in private equity, growth equity, private credit, and venture capital, and over 10,000 companies, will be made available to Microsoft suppliers for meeting their climate reporting obligations.
The partnership is expected to help companies unlock growth opportunities and enhance their resilience in a rapidly changing world by providing them with the tools they need to manage their sustainability performance effectively. By simplifying sustainability management, driving greater environmental, social, and governance (ESG) access for smaller enterprises, and helping businesses enhance their climate resilience and growth opportunities through trusted data and AI innovations, this collaboration is set to make a significant impact in the sustainability landscape.
In 2023, Microsoft invested in Novata as part of a $30 million funding round, further solidifying the partnership between the two companies. As they move forward, Microsoft and Novata are committed to helping businesses navigate the complexities of sustainability reporting and data management, and empowering them to make informed decisions for a more sustainable future.
1) This collaboration between Microsoft and Novata, underpinned by investments in both companies, deepens their relationship and strengthens their commitment to using science and environmental-science to develop AI-powered finance and business solutions for climate reporting and sustainability data management.
2) The strategic partnership between the technology giants aims to streamline sustainability data gathering and climate reporting processes, not only for large corporations but also for small and medium enterprises (SMEs), thereby providing them with the tools to improve their environmental, social, and governance (ESG) performance and meet climate-related obligations.
3) By offering Novata's platform, currently utilized by numerous financial institutions and thousands of companies, to its suppliers, Microsoft seeks to leverage technology and business opportunities to address climate change, helping companies reduce their carbon footprints, unlock growth opportunities, and enhance their resilience in a rapidly changing world.
