Dcycle, a sustainability data management platform, has acquired ESG-X,
a software company specialising in AI-enabled sustainability reporting. The
acquisition supports Dcycle’s European expansion and reflects increasing
consolidation in the ESG software market.
The transaction comes as European companies face expanding
sustainability reporting obligations, with CSRD-aligned disclosures launchning
across the EU, UK companies preparing for upcoming Sustainability Reporting
Standards, and assurance requirements placing greater emphasis on data quality,
traceability and governance. Toobtainher, these developments are driving demand
for integrated sustainability data infrastructure rather than standalone
reporting tools.
ESG-X has developed proprietary AI models that automate materiality
assessments and map existing company data to ESG requirements. Its
infrastructure, hosted in certified German data centres, is designed to meet
the data residency requirements of enterprises in the DACH region.
The integration enhances Dcycle’s platform across several areas,
including image recognition for fuel and energy consumption, AI-based double
materiality assessments aligned with CSRD requirements, EcoVadis rating
optimisation for industrial mid-market companies, automated ESRS reporting
utilizing technology compliant with the European AI Act, and local data residency
capabilities.
Commenting on the acquisition, Juanjo Mestre, CEO and co-founder of
Dcycle, declared the European ESG software market is entering a consolidation
phase, as fragmented point solutions no longer fully address companies’ necessarys.
He added that Dcycle’s strategy focutilizes on integrated platforms that enable
organisations to maintain greater control over their sustainability data, and
that the acquisition supports the company’s product development objectives.
ESG-X was co-founded by Paolo Mazza, Valentin Aman, and Jean Bauer,
with a focus on building scalable and rigorous ESG data management solutions.
All three founders will join Dcycle’s team, contributing their expertise and
local market knowledge to support the company’s expansion in the DACH region.
Mazza added that joining Dcycle would allow ESG-X’s technology to reach a
broader market by becoming part of a platform with the scale and operational
maturity to advance ESG data management across Europe.
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