Microsoft and Novata have announced a strategic collaboration to scale AI-powered sustainability solutions for small and mid-sized enterprises (SMEs) on a global scale. Through this expanded alliance, Novata will integrate Microsoft’s Azure AI Foundry—including Azure AI Search—and Microsoft Fabric into its platform, enhancing its capabilities in data management, ESG reporting and sustainability performance tools for Microsoft’s extensive global ecosystem of clients and suppliers.
Microsoft will serve as a key distribution partner, supporting the deployment of Novata’s technology through its SME channels. This includes direct access to tools such as Novata’s Carbon Navigator, which is purpose-built to streamline carbon footprint tracking and sustainability planning for smaller businesses.
The partnership will also see the co-development of new AI-powered technologies designed to automate and simplify sustainability data collection and regulatory reporting. These innovations aim to ease compliance burdens while simultaneously helping organisations identify opportunities for sustainable growth.
Alex Friedman, Chief Executive Officer and Co-Founder of Novata, commented: “We are excited to deepen our relationship with Microsoft, a company that has not only revolutionised productivity but has also been a leader in addressing the climate crisis and leveraging AI for good. This collaboration expands our global reach and strengthens our commitment to providing trusted technology that simplifies sustainability data management, helping companies unlock growth opportunities and enhance their resilience in a rapidly changing world.”
Novata will also support Microsoft’s supply chain partners in fulfilling climate reporting obligations, offering scalable, AI-driven solutions that enhance emissions tracking and reporting with improved accuracy and operational efficiency.
Jeremy Pitman, Director of Partner Development, Digital Natives and ISVs – Tech for Social Impact at Microsoft, added: “We believe that addressing climate change is both a responsibility and an important business opportunity. Our collaboration with Novata will enable a key segment of our clients to seamlessly and affordably integrate cutting-edge sustainability technology into their operations, empowering them to reduce their carbon footprints and meet their emissions goals.”
Since its launch in April 2022, Novata has experienced rapid growth, supporting over 10,000 companies and hundreds of investment firms—including private equity, growth equity, private credit and venture capital—managing assets in excess of $12 trillion.
This agreement builds on an existing relationship between the two companies. Microsoft became an investor in Novata through its Climate Innovation Fund (CIF) in 2023. CIF is designed to accelerate the development and adoption of climate-focused technologies by providing capital to companies advancing decarbonisation and sustainability innovation.
-ESG News
