Startup Aid Provides Meta with Environmental, Social, and Governance (ESG) Monitoring and Obtains Millions in Funding

Startup Aid Provides Meta with Environmental, Social, and Governance (ESG) Monitoring and Obtains Millions in Funding

Canadian Startup Novisto Raises €24 million in Series C Funding for Sustainability Impact Software

Toronto-based technology company, Novisto, has secured approximately €24 million (€27 million USD) in a Series C funding round for its software platform designed to help businesses monitor and evaluate their sustainability impacts. The platform, which functions like an accounting system for comprehensive sustainability data, offers a unique blend of reporting, disclosure, and broader management of sustainability functions.

Charles Assaf, co-founder, and CEO of Novisto, explains, "Our platform presents a holistic solution for companies seeking a streamlined approach to manage their sustainability data effectively. Unlike traditional methods, it goes beyond reporting to encompass the broader management of sustainability functions."

The Novisto platform automates the collection, management, and comparison of a company's environmental, social, and governance (ESG) efforts, saving businesses time and resources when undertaken manually. By comparing a company's ESG achievements against industry benchmarks, Novisto shows how a business ranks alongside its competitors.

According to Assaf, "When it comes to tracking key objectives, spreadsheets are not sufficient – reliable record-keeping systems are required to ensure the verifiability of that information. Many companies opt to have their ESG reports audited, and we have a system in place to accommodate that."

Revenue for Novisto comes from charging customers a monthly subscription fee, with clients including tech giants Meta and JetBlue, as well as pharmaceutical company Sanofi. With Europe's stricter ESG reporting guidelines, the continent has become a more attractive arena for climate-tech startups, such as Novisto, to expand their operations.

Lead by Inovia Capital, the Series C round also received investment from previous backers White Star Capital, SCOR Ventures, and Sagard. In total, the startup has raised around €48 million (€55 million USD) to date. With this funding, Novisto plans to grow its European team.

[Enrichment Data Relevance Assessment: Of the Enrichment Data, the key features and benefits of Novisto’s platform offer useful insights into the unique benefits and capabilities of the software that may be relevant to businesses considering adopting this solution.]

Key Features and Benefits of Novisto's Platform

• Comprehensive Sustainability Data Management: Dedicated system for collecting, managing, approving, disclosing, and validating sustainability data, giving businesses a reliable source of truth.
• Automation and AI Integration: Reduces manual effort and saves time through automated workflows and advanced AI technology, providing valuable insights beyond simple compliance.
• Collaborative Workflows and Role-Based Access: Facilitates teamwork across various functions involved in ESG initiatives, encouraging transparency and accountability.
• Data Integration Capability: Integrates with over 100 data sources, allowing the platform to adapt to the evolving ESG needs of businesses.
• Customizable Reporting and Benchmarking: Catering to diverse stakeholders with customized reporting, and comparing ESG performance against a broad global database of companies.
• Compliance and Disclosure Support: Supports regulatory compliance and helps businesses produce high-quality disclosures that address both mandatory and voluntary standards.
• Auditable and Investment-Grade Reporting: Ensures data security, accuracy, and auditability for external assurance processes, resulting in investment-grade reports.

Other Benefits

• Improved Efficiency and Accuracy: Automation reduces errors and streamlines reporting workflows, fostering efficiency and reliability.
• Enhanced Transparency and Accountability: Centralized data management and defined user roles ensure consistency, accuracy, and defensibility during audits and external assurance.
• Support for Independent ESG Auditing: Offers a secure, trustworthy system for independently auditing ESG reports, supported by traceable, validated data and workflows.
• Strategic Decision-Making: Provides actionable insights through AI and benchmarking, enabling organizations to drive strategic sustainability initiatives beyond compliance.
• Scalability and Flexibility: Adapts to growing and changing ESG requirements across industries and geographies.
• Recognition and Credibility: Backed by reputable industry stakeholders like Deloitte, Gartner, and Verdantix.

1. "With its automation and AI integration, Novisto's platform offers more than just simple compliance in environmental-science; it presents valuable insights beyond reporting, enhancing a business's understanding of their sustainability impacts."
2. "When it comes to environmental, social, and governance (ESG) data management, Novisto's unique blend of reporting, disclosure, and broader management functions offers a holistic solution for businesses, going beyond traditional methods and providing a reliable source of truth."
3. "Novisto's platform automates the collection, management, and comparison of a company's ESG efforts, supporting both compliance and strategic decision-making in technology, finance, and business, thereby creating a competitive edge in the environmental-science industry."

Read also: