ESG Book raises £29m for corporate governance data platform
ESG Book, a company that has created a platform to collate environmental, social and governance (ESG) data from companies, has closed a $35m (£28.54m) funding round.
The company’s cloud platform aims to make ESG data accessible to investors, fund managers and financial institutions.
ESG Book will use the Series B proceeds to expand its services globally with the goal of capturing a slice of an ESG data market valued at $5 billion.
The round was led by US strategic investment firm Energy Impact Partners alongside Paris-based investor Meridiam and Munich-based Allianz X.
ESG Book was incubated as a subsidiary of Arabesque, a group of fintech companies, in 2018.
Formerly known as Arabesque S-Ray, ESG book is headquartered in London but has offices in Frankfurt, Boston, Singapore, Delhi and Tokyo.
He launched the platform in 2021 and has since struck deals with financial organisations, such as investment bank Citi, to create an equity benchmark based on ESG scores.
He also develops tools for Dow Jones, including ESG sentiment scores for portfolio managers.
According to the ESG Book pitch deck, the company has 450 ESG data experts and covers more than 25,000 companies.
“Investors, corporations and all market participants today are demanding better technology solutions to direct capital to more sustainable and higher impact assets,” said Dr. Daniel Klier, CEO of ESG Book. and former global head of sustainability at the multinational bank. HSBC.
“ESG Book is disrupting the way sustainability is integrated and measured globally by using next-generation technology that makes ESG data accessible, comparable and transparent.”
ESG has become a buzzword around corporate boards, but is increasingly shaping investor decisions.
However, there are often disparities in how companies communicate ESG metrics, making it difficult for stakeholders to make clear assessments and comparisons.
Its platform is also used for due diligence – a feature that can be useful for investors becoming more cautious with their capital amid rising interest rates and market uncertainty.
Carsten Middendorf, Head of Platforms and Acquisitions at Allianz X, said: “As an investor, we know how important data is when making decisions. Sustainability is not just a fad or a phase. It is our necessary present if we want to have a future. This is why it is so important to ensure the transparency, quality and comparability of ESG data.