Dcycle, a sustainability data management platform headquartered in the UK and Madrid, has acquired ESG-X, a Munich-based software company specialising in AI-powered sustainability reporting, as it moves to strengthen its presence in the DACH region (Germany, Austria and Switzerland).
The acquisition brings together Dcycle’s infrastructure for managing non-financial data with ESG-X’s artificial intelligence capabilities for double materiality assessments and sustainability compliance. Dcycle said the combined platform will now offer specialised local support across the UK, Spain and Germany, three core markets covering much of Europe’s sustainability reporting requirements.
Juanjo Mestre, chief executive and co-founder of Dcycle, said the European ESG software market was entering a consolidation phase. “With more than a hundred tools addressing isolated parts of the problem, fragmentation no longer reflects how companies actually work,” he said. “Our focus is on integrated platforms that allow companies to truly own and scale their sustainability data.”
Founded in 2020, Dcycle is a B2B SaaS platform that enables companies to centralise, validate and operationalise non-financial data across teams, supporting decision-making and external reporting. The company said demand for integrated ESG data infrastructure is rising as the first wave of disclosures under the Corporate Sustainability Reporting Directive gets under way, while UK firms prepare for the forthcoming Sustainability Reporting Standards.
ESG-X was co-founded by Paolo Mazza, Valentin Aman and Jean Bauer through the Antler accelerator programme. The platform focuses on AI-driven sustainability reporting for CSRD and the Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME). Mazza said the acquisition would allow ESG-X’s technology to scale further within a broader European platform.
ESG-X operates from Munich and Düsseldorf and serves mid-market companies across the DACH region. Dcycle described Germany as a strategic priority, citing the country’s advanced regulatory environment and demanding ESG requirements. The ESG-X team, including its three founders, will join Dcycle to support its regional expansion.
Dcycle said the acquisition enhances its platform across several areas, including AI-powered double materiality assessments, automated ESRS reporting, EcoVadis rating optimisation, and local data residency in certified German data centres. ESG-X’s infrastructure is hosted entirely in Germany and complies with GDPR and European AI Act requirements.
“The combination of structured data, artificial intelligence and integrated platforms will define the next phase of the non-financial data market,” Mestre said.
Dcycle serves more than 2,000 clients across Europe and says it is the only software provider in Spain certified by TÜV Rheinland for ISO 14064 carbon footprint calculation. In December 2024, the company raised €6 million in a Series A funding round led by Samaipata, bringing its total funding to more than €10 million.
