Dcycle announced that it has signed an agreement to acquire ESG-X, a move aimed at scaling its sustainability and ESG data management capabilities across the DACH region, covering Germany, Austria, and Switzerland.

The transaction reflects growing consolidation in the European ESG software market as providers seek to offer broader, integrated platforms rather than standalone tools.

ESG-X Brings AI-Driven Materiality and Data Mapping Capabilities

Founded in 2023 and headquartered in Germany, ESG-X develops artificial intelligence models designed to automate materiality assessments and map existing corporate data to ESG reporting requirements. Its technology focuses on improving accuracy, scalability, and future readiness of ESG data workflows.

Valentin Aman, co-founder of ESG-X, said the company was created to help organizations manage ESG data in a way that can evolve alongside regulatory and reporting demands. He noted that joining Dcycle enables ESG-X to extend that mission by integrating its technology into a larger, more mature sustainability platform operating at European scale.

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Strengthening Dcycle’s ESG and Carbon Accounting Platform

Madrid-based Dcycle provides carbon accounting and ESG software that allows companies to measure emissions, comply with sustainability regulations, and design decarbonization strategies. According to Dcycle, the acquisition will materially enhance its product offering across multiple areas.

These include improved image recognition for fuel and energy consumption data, AI-powered double materiality assessments aligned with CSRD requirements, EcoVadis rating optimization, and automated European Sustainability Reporting Standards (ESRS) reporting. The platform will also incorporate technology compliant with the European AI Act and ensure local data residency through certified German data centers.

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Consolidation Signals Shift in ESG Software Market

Juanjo Mestre, CEO and co-founder of Dcycle, said the European ESG software sector has entered a consolidation phase, noting that more than one hundred solutions currently compete to address isolated sustainability challenges.

He argued that fragmented tools no longer meet corporate needs, and that scalable sustainability data management requires integrated platforms that allow companies to retain ownership of their data infrastructure. According to Mestre, the acquisition of ESG-X is focused on building a more comprehensive and future-ready product for Dcycle’s customers across Europe.

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