ESG Due Diligence
Replace manual processes and reduce consulting costs with technology that keeps data consistent from pre-deal to exit.
Tech-Enabled Diligence Workflow
- Request and track ESG diligence data tied to what’s material to the investment
- Maintain a single source of truth across deal teams and targets
- Automate version control for data, documents, and comments
- Compare company performance with Novata benchmarks in real time
- Score companies using your own framework with auto-calculated results
- Replace long, subjective reports with clear data-driven insights
ESG Diligence Advisory Expertise
Optimize your deal team’s workflow, put performance in context, and reduce costs versus traditional consulting. Purpose-built for ESG diligence, Novata offers data collection, collaboration, and reporting in one place, and can be fully integrated with Novata’s solutions for portfolio monitoring and sustainability reporting.
The workflow is designed and supported by Novata Advisory, whose combined team brings nearly two decades of sustainability due diligence experience working with top consultancies and global private equity and credit firms.
Why Deal Teams Choose Novata
- Ensure continuity between pre-deal diligence and post-close monitoring
- Reduce duplicate data requests and repeated analysis across transactions
- Align deal teams, reporting teams, and targets on the same dataset
- Quantify sustainability performance in financial terms for investment analysis
Three Ways Novata Offers a Smarter Take on ESG Due Diligence
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FAQ
ESG due diligence is the process of identifying environmental, social, and governance risks and opportunities during the investment evaluation process.
In private markets, ESG due diligence matters because these risks can materially affect valuation, downside risk, regulatory exposure, and long-term value creation for GPs, LPs, private credit investors, and direct lenders.
Novata digitizes and standardizes ESG data collection from prospective portfolio companies.
The platform replaces spreadsheets with guided data requests, framework-aligned metrics, built-in benchmarks, and materiality insights. This lets teams surface red flags early, compare targets to peers, and integrate ESG considerations directly into investment decisions.
Novata helps identifying a wide range of ESG risks that affect investment risk and value, including:
- Climate and carbon risk
- Regulatory and compliance risk
- Workforce and DEI risk
- Governance and oversight risk
- Supply chain and operational risk
Consistent and reliable data enables investment teams to compare ESG risk profiles across diligence opportunities.
Novata’s platform connects diligence data to benchmarks and portfolio data, allowing seamless comparison to peer performance. For deeper analysis, Novata’s Advisory team can connect diligence data to financial outcomes, supporting value creation and portfolio monitoring plans.
Novata’s ESG Due Diligence module enables teams to collect diligence-ready ESG data within days, not weeks. Guided onboarding and expert-designed templates, built specifically for private markets, help ESG teams move at the pace required for live transactions.
Yes. Novata centralizes ESG diligence evidence, audit trails, and decision rationale. This supports LP reporting, internal governance, and compliance requirements with clear, retrievable records over time.
ESG intelligence for smarter investment decisions.
Structured digital workflows for collecting, comparing, and carrying ESG diligence data into ongoing portfolio monitoring and reporting cycles.