The ESG data market is flooded with incomparable data and single scores, which often have no bearing on a company’s underlying ESG performance. Elon Musk calling ESG a “sham” and criticisms from Stuart Kirk from HSBC are recent examples of the industry coming under fire.
Responding to growing demand for technology-enabled ESG data solutions, London and Frankfurt-based sustainability data startup ESG Book has raised $35 million in Series B funding. The new capital will be used to advance ESG Book’s next-generation technology capabilities, enabling clients to meet increasingly complex sustainability requirements, and accelerate the company’s expansion.
The round was led by Energy Impact Partners (EIP), a global investment firm leading the transition to a sustainable future, alongside global sustainability leader Meridiam and Allianz X, the digital investments arm of leading global insurer and asset manager Allianz.
ESG Book connects investors and companies, so they can directly share ESG information in real-time, in a more granular and detailed way - free from the annual reporting cycle. The platform allows companies to be custodians of their own data, unlike other providers who charge for access to opaque and subjective company ratings that can make greenwashing easier.
Dr Daniel Klier, CEO of ESG Book said: “Investors, companies, and all market participants are demanding better, technology-enabled solutions in order to direct capital towards more sustainable and higher impact assets. ESG Book is disrupting how sustainability is integrated and measured on a global scale by using next-generation technology that makes ESG data accessible, comparable and transparent.”
With the ESG data and services market expected to grow to $5 billion globally by 20251, the Series B investment will be used to fuel the adoption of ESG Book’s data platform, and further the company’s continued expansion into new products.
Nazo Moosa, managing partner in Europe at Energy Impact Partners added: “We want to empower the transition to net zero and support the principles of sustainability. ESG Book marks the tenth investment by Energy Impact Partners in Europe, and this partnership is driven by a shared vision for radical transparency in sustainability data.”