Dcycle acquires ESG-X to lead ESG data management in Europe

1. Why this acquisition?

The European ESG software market has been fragmented for some time. Over a hundred solutions compete to solve isolated parts of the problem: some calculate carbon footprints, others prepare reports, and others manage ratings. But companies need something different: a single environment to centralize, connect, and operate all their non-financial information.

With the acquisition of 100% of ESG-X, we take a decisive step in that direction. This is not about accumulating companies. It is about building the best possible product for our clients, combining what we already do well with capabilities that complement and expand our platform.

Germany is one of the most mature and demanding ESG management markets in Europe. Its mid-market industrial ecosystem faces the same regulatory pressure as large publicly traded companies but without an appetite for oversized enterprise solutions. Having a local presence, knowledge of the German regulatory framework, and technology adapted to that reality is key to providing truly useful service.

2. What is ESG-X?

ESG-X is an ESG management platform based in Munich, specializing in sustainability reporting powered by artificial intelligence. Founded through the Antler acceleration program, it has developed proprietary AI models capable of automating materiality assessments, mapping existing data according to regulatory requirements, and helping to address information gaps.

Its infrastructure is entirely hosted in certified data centers in Germany, meeting the highest standards of security, data protection, and GDPR compliance. Its AI technology has been developed in accordance with the European AI Act.

From its offices in Munich and Düsseldorf, ESG-X serves mid-market companies across the DACH region (Germany, Austria, and Switzerland), with a focus on compliance with CSRD and VSME.

3. What changes for our clients?

The integration of ESG-X directly expands what our clients can do with Dcycle. Here are the specific improvements we are introducing:

· AI-powered double materiality assessments: ESG-X models automate the materiality assessment process aligned with CSRD requirements, reducing time and effort without compromising rigor.

· Enhanced image recognition: Improved automatic capture of fuel and energy consumption data from invoices and physical documents.

· EcoVadis rating optimization: Particularly relevant for European mid-market industrial companies that need to improve their score to maintain business relationships with major clients.

· Automated ESRS reporting: Technology compliant with the European AI Act, providing an additional layer of regulatory confidence.

· Local data residency in Germany: A non-negotiable requirement for many companies in the DACH region, now covered natively.

These capabilities complement the strengths already offered by our platform: TÜV Rheinland ISO 14064 certification for carbon footprint calculation, ISO 27001 information security certification, calculation across all three scopes, life cycle analysis, Scope 3 and supply chain management, multi-framework reporting (CSRD, MITECO, GRI, SBTi), and energy management with ISO 50001 support.

4. The new team members

The three founders of ESG-X are joining the Dcycle team, bringing complementary profiles and deep knowledge of the local market:

· Paolo Mazza, software engineer and technical co-founder, responsible for ESG-X’s AI and product development. Paolo will lead the technological integration and strengthen our artificial intelligence capabilities.

· Valentin Aman, with business development experience at Tesla, leading sales and marketing. Valentin will drive commercial growth in the DACH region.

· Jean Bauer, former ESG consultant at Arthur D. Little, based in Düsseldorf, leading customer success. Jean will ensure that German companies receive specialized local support.

With this addition, Dcycle now provides local support in three strategic markets: Spain, Germany, and the United Kingdom, the three countries that concentrate the majority of European regulatory requirements for sustainability reporting.

5. Our vision: a workspace for non-financial data

There is something we see repeated in almost every company we work with: they collect the same data over and over, from the same sources, without using it or connecting it across teams, projects, or decisions. That fragmented approach doesn’t scale and doesn’t create real value.

What we are building is a different model: a workspace that connects data, people, and projects so that ESG information becomes a true lever for revenue, management, and decision-making. Not an isolated reporting system, but an infrastructure where each piece of data is collected once and reused in all the contexts that need it.

This acquisition reinforces that vision exactly. We are not adding just another tool to the catalog. We are integrating capabilities that make the platform more complete, smarter, and more useful for European companies that need to take control of their non-financial data.

6. What comes next

After our Series A round in December 2024, led by Samaipata, we continue to focus on disciplined growth through organic expansion and selective integration of complementary capabilities.

The combination of structured data, artificial intelligence, and an integrated platform is not just an incremental improvement. It is the model that will inevitably dominate the non-financial data market in the coming years.

With over 2,000 clients across Europe, a team of nearly 60 people, and a presence in three key markets, we are in the best position to lead this transition.