Dcycle, a platform focused on sustainability data management, has announced the acquisition of ESG-X, a software company specializing in AI-enabled ESG (Environmental, Social, and Governance) reporting solutions.

Acquisition Details

The transaction aims to strengthen Dcycle's presence in the European market and signals a consolidation phase in the ESG software sector. European companies are subject to increasingly stringent sustainability reporting obligations, with regulations such as the CSRD (Corporate Sustainability Reporting Directive) imposing high standards in terms of data quality, traceability, and governance.

Technology and Integration

ESG-X has developed proprietary AI models to automate materiality assessments and map existing company data to ESG requirements. Its infrastructure, hosted in certified German data centers, is designed to meet the data residency requirements of enterprises in the DACH region (Germany, Austria, Switzerland). The integration with Dcycle will enhance the existing platform, improving image recognition for fuel and energy consumption, AI-based double materiality assessments, EcoVadis rating optimization, and automation of ESRS (European Sustainability Reporting Standards) reporting, in compliance with the European AI Act.

Future Prospects

Juanjo Mestre, CEO and co-founder of Dcycle, emphasized that the European ESG software market is entering a consolidation phase, where fragmented solutions can no longer fully meet the needs of companies. The acquisition of ESG-X will enable Dcycle to offer an integrated platform that allows organizations to maintain greater control over their sustainability data. The founders of ESG-X, Paolo Mazza, Valentin Aman, and Jean Bauer, will join the Dcycle team, contributing their expertise and local market knowledge to support the company's expansion in the DACH region.