Novata and Microsoft partner to expand AI sustainability tools for SMEs

Novata has announced a new collaboration with Microsoft to enhance sustainability data management and reporting through artificial intelligence. The partnership will leverage Microsoft’s Azure AI Foundry and Microsoft Fabric to improve Novata’s suite of tools and make them more widely accessible, particularly to small and mid-sized enterprises (SMEs) and supply chain partners within Microsoft’s ecosystem.

As part of the agreement, Microsoft will act as a key sales partner for Novata, promoting its platform, including the Carbon Navigator tool, across its SME channels. The two companies will also co-develop AI-powered technologies aimed at simplifying the collection and analysis of sustainability data.

The collaboration includes a focus on improving climate-related disclosures and reporting among Microsoft’s suppliers. Novata will support these companies with tools designed to enhance the accuracy, efficiency and affordability of sustainability metric tracking and reporting.

“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,” said Alex Friedman, CEO and Co-Founder of Novata. “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.”

Jeremy Pitman, Director of Partner Development, Digital Natives and ISVs – Tech for Social Impact at Microsoft, said: “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.”

Novata, which launched commercially in April 2022, offers an integrated platform for sustainability data management, carbon accounting, and regulatory reporting. Its services are used by private market investors managing over $12 trillion in assets. The company has been a portfolio company of Microsoft’s Climate Innovation Fund since 2023.

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