In a move to strengthen sustainability efforts within the financial sector, Connect Earth has acquired Datia, a Stockholm-based ESG reporting platform. This acquisition aims to provide a comprehensive solution for financial institutions seeking seamless integration of sustainability data, regulatory compliance, and ESG-related product offerings. By joining forces, the two companies aim to streamline the transition to sustainable finance practices, leveraging Datia’s expertise in regulatory reporting and Connect Earth’s carbon measurement solutions.
While both entities have previously focused on improving financial institutions’ access to accurate ESG and carbon data, their merger represents a significant shift towards creating a unified platform. Earlier initiatives by Datia primarily catered to asset managers seeking compliance with European regulations and developing relevant ESG frameworks. Meanwhile, Connect Earth’s strength has been providing carbon emissions data to banks and fintech companies, facilitating regulatory adherence and sustainable finance innovation.
How will the new platform benefit financial institutions?
The newly integrated platform combines the technology prowess of Datia with Connect Earth’s API-driven infrastructure. This synergy allows financial institutions to meet a multitude of regulatory requirements more effectively. With a focus on SFDR, CSRD, and EU Taxonomy compliance, the platform offers a single standardised data resource to reduce redundancy in data management while fulfilling client needs in developing ESG-linked products.
What is the strategic vision behind the acquisition?
Datia’s regulatory expertise complements Connect Earth’s customer engagement tools. The platform not only aids compliance but also turns it into a business opportunity, facilitating growth through sustainable product development.
“Finance is the most powerful lever we have to address sustainability,” noted Connect Earth CEO Alexander Lempka. “By acquiring Datia and unifying ESG reporting with emissions data and customer engagement, Connect Earth is redefining how financial institutions approach sustainability.”
Juan Manuel Serruya, CEO and founder of Datia, expressed, “By joining forces with Connect Earth, we can help banks and asset managers move beyond compliance, turning regulation into opportunity and impact into growth.”
The platform also introduces tools for compliance, covering SFDR, PAI, EET, and CSRD disclosures. It caters to diverse financial activities such as retail banking and asset management, providing end-to-end services. With a focus on both compliance and customer engagement, it broadens the breadth of services banks can offer, enhancing customer retention and satisfaction.
Founded in 2021, Connect Earth’s vision was to democratize access to carbon data by providing robust tools for emissions monitoring. These innovations can be seamlessly woven into customer applications to encourage sustainable behavior through spending insights, prompting both businesses and individuals to lower their carbon footprints.
This acquisition signifies a pivotal move in the fintech landscape, where sustainability integration in financial models is becoming a priority. The combined efforts of Connect Earth and Datia reinforce the functionality and accessibility of ESG and carbon data for financial institutions, ensuring their adaptability to evolving regulatory landscapes and customer demands.
