Connect Earth has acquired Datia, a climate fintech company, for an undisclosed amount. This corporate acquisition sees Connect Earth, a provider of sustainability-focused solutions, integrate Datia's specialized data platform. Datia, founded in 2019 and headquartered in Stockholm, Sweden, has built a reputation for empowering investors in their transition to sustainable finance.
Datia's platform optimizes sustainable finance processes, offering investors traceable sustainability data, insights, and ready-to-share reports. Its software assists asset managers, asset owners, third-party management companies, wealth advisors, and tech platforms in complying with key European frameworks, including PAI Statement and Sustainable Investments for SFDR, the European ESG Template (EET), MiFID II end client reports, and EU Taxonomy. The company’s solutions also provide insights into ESG scores, controversial business involvements, and contributions to Sustainable Development Goals, serving a customer network with over $200 billion in assets under management.
The acquisition is strategically aimed at enhancing Connect Earth's offerings in the rapidly evolving sustainable finance sector. Datia’s deep expertise in regulatory compliance and its robust data platform, which automates data sourcing, portfolio calculations, and reporting, complements Connect Earth's existing focus on sustainability. This move allows Connect Earth to expand its capabilities, providing a more comprehensive suite of tools for financial institutions navigating complex ESG regulations and seeking to integrate sustainability into their investment strategies. Expected synergies include a broader product portfolio, increased data coverage, and an expanded client base.
The combined entity is poised to offer a more powerful and integrated solution for sustainable finance. By leveraging Datia's specialized data and reporting functionalities alongside Connect Earth's broader platform, the acquisition is expected to streamline sustainable investing for a wider array of financial market participants. This aims to reinforce both companies' commitment to driving the global shift towards more responsible and transparent financial practices.