UK-based sustainability data platform Dcycle has announced the acquisition of Munich-based AI company ESG-X, a move that materially strengthens Dcycle’s position in the European ESG software landscape and marks its formal expansion into Germany—one of the world’s most demanding jurisdictions for sustainability reporting, data governance, and assurance.

The transaction brings together AI-driven double materiality and compliance automation with a broader sustainability “system of record” designed for audit-ready, regulator-grade ESG data. Importantly for enterprises operating in the DACH region, the combined platform includes local German data residency—an increasingly non-negotiable requirement for large and mid-market organizations.

Beyond the immediate product expansion, the deal reflects a broader structural shift underway in the ESG technology market. According to Juanjo Mestre, CEO and co-founder of Dcycle, ESG software has entered a clear consolidation phase as regulatory pressure and investor scrutiny expose the limits of fragmented reporting tools.

“Companies are moving away from point solutions that solve isolated problems,” Mestre said. “CSRD, assurance requirements, and supply-chain scrutiny are pushing the market toward integrated, audit-ready ESG data infrastructure. Owning your sustainability data is becoming a strategic necessity, not a compliance exercise.”

Why Germany Matters

Germany represents one of Europe’s most mature ESG markets, with high expectations around data quality, traceability, and governance. By acquiring ESG-X, Dcycle gains on-the-ground teams in Munich and Düsseldorf, along with deep local expertise in DACH regulatory frameworks. ESG-X’s infrastructure—hosted in certified German data centers—addresses stringent data residency and security standards required by regional enterprises.

Expanded AI Capabilities Across the ESG Stack

The acquisition significantly enhances Dcycle’s AI capabilities across several core areas:

This shift reflects a growing consensus in the market: ESG data must function as a connected operational asset rather than a series of disconnected reporting exercises.

From Reporting to Infrastructure

Mestre emphasized that most organizations still collect identical ESG data repeatedly, across teams and projects, without creating a reusable or decision-grade dataset. That model, he argues, does not scale.

“We’re building a workspace where data, people, and projects are connected—so ESG information becomes a lever for management, revenue, and strategic decision-making,” he said.

Founders Join Dcycle as Integration Accelerates

All three ESG-X founders—Valentin Aman, Paolo Mazza, and Jean Bauer—will join Dcycle as part of the acquisition. ESG-X was co-founded within the Technical University of Munich ecosystem and includes leadership with global corporate experience, including former Tesla executive Valentin Aman.

“This combination allows us to scale our original mission far beyond what we could do independently,” Aman said. “Together, we’re building ESG data management that is accurate, scalable, and genuinely useful for business.”

A Signal for the EU ESG Software Market

Coming shortly after Dcycle’s Series A round led by Samaipata in December 2024, the acquisition underscores a disciplined growth strategy focused on integrating complementary capabilities rather than expanding through surface-level features.

More broadly, the deal sends a clear signal of a M&A market trend: Europe’s ESG software sector is maturing and consolidating. As CSRD disclosures move from theory to execution to embedded core operating values, platforms that combine structured data, AI, regulatory alignment, and enterprise-grade governance are emerging as the likely winners.

For sustainability leaders, investors, and regulators alike, the message is becoming harder to ignore—ESG reporting is no longer about producing disclosures. It is about building durable, auditable data infrastructure that can withstand scrutiny and drive real-world decisions.

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