The acquisition expands Dcycle’s presence in the DACH region by combining AI-based ESG technology with local expertise to serve European mid-market companies.
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 beginning across the EU, UK companies preparing for upcoming Sustainability Reporting Standards, and assurance requirements placing greater emphasis on data quality, traceability and governance. Together, 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 using technology compliant with the European AI Act, and local data residency capabilities.
Commenting on the acquisition, Juanjo Mestre, CEO and co-founder of Dcycle, said the European ESG software market is entering a consolidation phase, as fragmented point solutions no longer fully address companies’ needs. He added that Dcycle’s strategy focuses 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.