Stockholm (NordSIP) – When financial markets embraced ESG integration and sustainability at the end of the 2010s, a range of sustainable finance service providers emerged to cater to the sectors new priorities. However, in the aftermath of COVID-19, as economic and financial conditions suffered the effects of Russia’s invasion of Ukraine, ESG enthusiasm began to fade. As early as 2023, NordSIP noticed that the market for ESG service providers was tightening and consolidating. That trend has endured and possibly accelerated under the second Trump Administration and the ESG pushback that has come in its wake.
This week, the market consolidated once again. Datia, a Stockholm-based ESG reporting platform serving asset managers and financial institutions across Europe and the USA, announced it was being acquired by Connect Earth, a London-based climate-fintech supplying financial institutions with carbon measurement solutions. By integrating Datia’s regulatory reporting technology with Connect Earth’s API-first carbon and ESG infrastructure, the combined platform hopes to provide better and more financially efficient compliance with sustainability regulatory requirements with a single, standardised data solution.
For Datia, this move is aligned with the mission of making Sustainable Finance more accessible. “By joining forces with Connect Earth, we’re bringing together two leaders in sustainable finance to deliver an end-to-end offering for banks, from retail and wealth to asset management and lending. Our combined technology, data, and global footprint across EMEA and North America will help customers move faster and with more confidence. I’m proud of what we’ve built at Datia and excited to keep supporting the combined company as a board observer,” said Juan Manuel Serruya, CEO and founder of Datia.
This acquisition represents a major step in Connect Earth’s strategy of building a Sustainable Finance Operating System (OS): a unified, end-to-end data platform enabling financial institutions to comply with regulation, engage customers, and originate ESG-linked finance at scale.
“Finance is the most powerful lever we have to address sustainability. By acquiring Datia and unifying ESG reporting with emissions data and customer engagement, Connect Earth is redefining how financial institutions approach sustainability,” said Alexander Lempka, CEO of Connect Earth. “We help banks and asset managers move beyond compliance, turning regulation into opportunity and impact into growth. Effectively, we now cover demand generation for sustainable products and the supply of regulatory reporting tools,” Lempka added.
