Connect Earth Acquires Datia to Build Unified ESG Finance Platform

Climate fintech firm Connect Earth announced the acquisition of European ESG reporting platform Datia, marking a step toward building what it describes as a Sustainable Finance Operating System for financial institutions. The combined platform integrates carbon measurement tools, regulatory reporting, and client engagement capabilities to help banks and asset managers meet disclosure requirements under frameworks including the EU's SFDR, CSRD, and Taxonomy Regulation.

Connect Earth specializes in API-first carbon and ESG data infrastructure for financial institutions, while Berlin-founded Datia provides automated regulatory reporting tools for asset managers and financial institutions in Europe and the United States. By combining the two platforms, Connect Earth aims to replace fragmented legacy systems and duplicated datasets with a standardized solution covering retail, wealth management, business lending, and asset management use cases. The combined offering will provide carbon emissions data at both the transaction and portfolio level.

Financial institutions globally are navigating mounting pressure to comply with overlapping sustainability disclosure regimes while managing data quality and technology costs. The acquisition addresses a recurring challenge for banks: the need to simultaneously meet investor-facing requirements such as the SFDR, product-level taxonomy alignment, and corporate-level CSRD reporting, each drawing on overlapping but not identical datasets. Connect Earth's approach of building a single infrastructure layer for all these requirements reflects the direction in which European sustainable finance regulation is heading.

The deal reflects broader consolidation in the ESG data and reporting technology sector, where specialist providers are combining to achieve the scale needed to serve global financial institutions. Datia founder Juan Manuel Serruya noted the alignment between the companies' missions in sustainable finance and technology. The acquisition is expected to strengthen Connect Earth's position in both European and North American markets, while deepening its relationships with financial institutions across asset classes from SME lending to institutional asset management.

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