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Microsoft, Novata Partner on Sustainability Reporting for SMBs
Novata and Microsoft recently unveiled a collaboration designed to broaden access to sustainability reporting tools for SMBs worldwide.
Under the terms of the partnership, Microsoft will become a primary sales partner, offering Novata's Carbon Navigator and environmental, social and governance (ESG) data platform through its SMB channels. Microsoft suppliers will also gain access to Novata's tools to meet climate reporting obligations efficiently and affordably. Additionally, the two companies will co‑develop AI‑driven tools using Azure AI Foundry and Microsoft Fabric to streamline data collection, carbon accounting and regulatory reporting.
Novata, a public benefit corporation (PBC) launched in 2022, now serves more than 10,000 companies and investment firms managing over $12 trillion in assets. Novata CEO Alex Friedman noted the deal deepens Novata's global reach and furthers its mission to simplify sustainability data management. "We are excited to deepen our relationship with Microsoft, a company that has not only revolutionized productivity but has also been a leader in addressing the climate crisis and leveraging AI for good," Friedman said in a prepared statement.
Microsoft's director of partner development, Jeremy Pitman, added that the collaboration "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."
The push for ESG accountability is intensifying globally. In the EU, the Corporate Sustainability Reporting Directive now requires thousands of firms, including smaller suppliers, to disclose emissions data. SMBs often lack the internal resources to comply efficiently. The Microsoft-Novata partnership addresses that gap, bringing institutional‑grade ESG software to a broader audience.
The "RCP Channel Briefing" blog is researched, fact-checked, edited and updated by the editors of RCPmag.com, with writing assistance from AI.
Posted by Redmond Channel Partner magazine staff on August 01, 2025