Northern Trust Announces a Partnership with Novata, Adding Private Markets Data and Benchmarking Capabilities to Whole Office Strategy

Rhea-AI Summary

Northern Trust has partnered with Novata to provide its ESG data management software solution to asset servicing clients. This collaboration is part of Northern Trust's Whole Office strategy, aiming to offer a clearer view of the ESG impact of private companies on investment portfolios. The platform will simplify ESG data collection and provide tools for evaluating and managing ESG risks and opportunities. Northern Trust clients can access advanced technology and services to make more informed decisions.

Positive

• Northern Trust's partnership with Novata will enhance its ESG data management capabilities.
• The collaboration will provide asset owners with a clearer view of the ESG impact of private companies on investment portfolios.
• Novata's technology platform will help private market investment firms evaluate and manage their ESG risks and opportunities.
• Northern Trust's Whole Office strategy aims to optimize investment performance and maximize the value of client data.
• The demand for ESG data is growing, and Novata's technology platform will be a valuable tool for private market investment firms.
• Northern Trust's clients can benefit from advanced technology, skills, and services to make more informed decisions.

Negative

• None.

ESG Data Management Solution enables transparency in Private Markets

CHICAGO--(BUSINESS WIRE)-- Northern Trust (Nasdaq: NTRS) has reached an agreement to make available Novata’s ESG data management software solution to Northern Trust asset servicing clients, following a strategic investment in the company.

The addition of Novata’s data management solution is an extension of Northern Trust’s Whole Office strategy that will provide asset owners a clearer view of the ESG impact of private companies on investment portfolios and simplify the ESG data collection process for investors and portfolio companies. Northern Trust Whole Office facilitates client access to new technologies, services and solutions across the investment lifecycle.

“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. “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.”

In April 2023, Northern Trust participated in the Series B funding round for Novata, a certified B Corporation and technology platform that was founded as a public benefit corporation by a unique consortium of non-profit and for-profit organizations. Novata offers the technology and expertise to streamline and simplify ESG data management for the private markets. The platform provides clear definitions, guidance for tools for calculating ESG metrics, hands-on support from ESG experts, and market-leading benchmarking and analytics to easily review data in context and compare to industry peers.

Novata’s metric library includes more than 800 metrics that align to widely accepted standards and frameworks, making it simple to identify a clear starting point for ESG data collection and reporting. Key metrics offered and tracked by the Novata platform cover environmental categories such as greenhouse gas (GHG) emissions, renewable energy use, and water/wastewater management; social categories such as employee engagement, diversity & inclusion, and data security; and governance factors such as board diversity, business ethics, corruption and bribery, and systemic risk management. Novata’s flexible platform enables a customized ESG reporting approach so users can focus on the metrics that matter most to them and their stakeholders.

“Today, private companies and their investors face increasing pressures when it comes to issues of ESG and sustainability,” said Alex Friedman, CEO & Co-Founder of Novata. “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.”

About Novata

Novata is a certified B Corporation that empowers the private markets to achieve a more sustainable and inclusive form of capitalism. Novata’s technology platform makes navigating the ESG landscape simple for private markets by identifying a clear starting point for selecting the metrics that matter, streamlining data collection, and contextualizing data to drive reporting and action. Novata serves more than 5,000 companies in more than 20 countries and is backed by the Ford Foundation, Hamilton Lane, Microsoft Omidyar Network, and S&P Global. For more information, please visit https://www.novata.com/.

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 25 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of September 30, 2023, Northern Trust had assets under custody/administration of US$14.2 trillion, and assets under management of US$1.3 trillion. For more than 130 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on northerntrust.com. Follow us on X (formerly Twitter) @NorthernTrust or Northern Trust Corporation on LinkedIn.

Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at https://www.northerntrust.com/terms-and-conditions.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231102063452/en/

Europe, Middle East, Africa & Asia-Pacific:

Camilla Greene

+44 (0) 20 7982 2176

Camilla_Greene@ntrs.com

Simon Ansell

+ 44 (0) 20 7982 1016

Simon_Ansell@ntrs.com

US & Canada:

John O’Connell

+1 312 444 2388

John_O’Connell@ntrs.com

Source: Northern Trust Corporation

FAQ

What is the partnership between Northern Trust and Novata about?

The partnership between Northern Trust and Novata aims to provide asset servicing clients with Novata's ESG data management software solution. It will offer a clearer view of the ESG impact of private companies on investment portfolios and simplify the ESG data collection process.

What is Northern Trust's Whole Office strategy?

Northern Trust's Whole Office strategy is focused on facilitating client access to new technologies, services, and solutions across the investment lifecycle. It aims to optimize investment performance and maximize the value of client data.

What benefits does Novata's technology platform offer?

Novata's technology platform provides clear definitions, tools for calculating ESG metrics, hands-on support from ESG experts, and market-leading benchmarking and analytics. It simplifies ESG data management for private markets and enables users to customize their ESG reporting approach.

What metrics does Novata's platform cover?

Novata's metric library includes more than 800 metrics that align with widely accepted standards and frameworks. It covers environmental categories such as greenhouse gas emissions and renewable energy use, social categories such as employee engagement and diversity & inclusion, and governance factors such as board diversity and corruption and bribery.

What is the significance of Northern Trust's investment in Novata?

Northern Trust's investment in Novata demonstrates its commitment to leveraging innovative partners to help clients maximize the value of their data and optimize investment performance. The investment supports the growth and development of Novata's technology platform.