UK- and Spain-based sustainability data platform Dcycle acquires Germany’s ESG-X to accelerate DACH expansion

European sustainability data platform Dcycle has acquired German AI specialist ESG-X, signalling a significant consolidation trend within the continent's burgeoning ESG software market. This strategic move aims to bolster Dcycle's presence in the DACH region, integrating ESG-X's AI-powered reporting solutions with Dcycle's data management infrastructure. The acquisition addresses the growing need for integrated platforms that can efficiently handle complex non-financial data requirements driven by evolving regulations. The combined entity now offers localised support across the UK, Spain, and Germany, key markets for European sustainability reporting mandates. ESG-X's proprietary AI models, developed in Europe and compliant with the forthcoming AI Act, automate crucial processes like materiality assessments and data mapping. Dcycle highlights that this consolidation is essential as companies face increasing scrutiny on the quality, traceability, and governance of ESG data, moving away from fragmented reporting tools towards unified data infrastructure. This development impacts a wide range of European businesses, particularly mid-market companies in the DACH region who are navigating the initial waves of CSRD-aligned disclosures and preparing for new UK sustainability standards. By merging capabilities, Dcycle and ESG-X intend to provide a scalable solution where ESG information acts as a strategic lever for revenue and decision-making, rather than a repetitive data collection exercise. The acquisition underscores a broader European push for digital sovereignty in critical sectors like data management and AI.