Novisto Raises USD $27M For Audit Ready ESG

May 27, 2026 | NCFA Market Activity | Risk Compliance And Regtech, Banking And Credit Infrastructure, Artificial Intelligence And Data

Novisto Raises Capital As ESG Claims Need Proof

On May 20, 2025, Montreal based Novisto announced a USD $27M Series C round led by Inovia Capital, with White Star Capital, SCOR Ventures, and Sagard participating. Novisto says the financing brings its total funding to more than USD $55M. The money comes as ESG reporting moves away from wide sustainability claims and into data controls, audit trails, and disclosure risk.

Green Claims Need Proof

On April 23, 2025, the Canadian Securities Administrators paused mandatory climate and diversity disclosure rules, but greenwashing risk remains high Issuers gained more time on reporting. Unsupported environmental claims still carry legal and reputational risk.

The Competition Bureau’s environmental claims guidance expects businesses to back green claims with evidence. NCFA previously wrote about Canada’s updated rules for environmental claims which explains why sustainability language now needs verification records behind it.  Yes, that includes many types of fintech firms, such as ESG data analytics, carbon platforms, and investor communications.

ESG Data Needs Audit Trails

Novisto helps companies turn scattered sustainability data into usable reporting records. That means cleaner source data, clearer approvals, and stronger evidence when claims face review.

Revenue almost tripled since Novisto’s 2023 Series B. Clients also reported a 50% reduction in time spent completing reporting assessments. Enterprise buyers are still spending because ESG data now needs source records, approvals, and proof.

See:  RBC Drops Green Commitment After Law Change

Novisto also points to AI powered ESG data automation and audit readiness. AI can speed up extraction, benchmarking, and disclosure mapping, but bad records still break automated reporting systems. Financial institutions already know this from credit, fraud, risk, and regulatory reporting.

Europe Needs Reporting Systems

Novisto plans to use the financing to expand in Europe. Sanofi used Novisto to produce one of the first 15 CSRD compliant reports released in 2025. Emirates Group is a recent customer, and S&P Global is a distribution partner.

Europe gives Canadian regtech firms a live commercial opening. Large enterprises now need systems that can defend sustainability disclosures under tighter reporting standards for boards, CFOs, auditors, regulators and investors. No more spreadsheet cleanup before every reporting cycle.

For financial institutions, OSFI’s climate risk guideline still expects federally regulated financial institutions to manage climate related risk through governance and disclosure. That keeps climate and sustainability data tied to risk controls, not just communications.

Talking Point

If green claims need proof now, how should Canada balance slower climate disclosure rules with tougher greenwashing enforcement so credible reporting infrastructure wins and weak ESG claims lose market trust?

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