ESG Sector

Our latest ESG report tracks the fundraising and M&A transactions that occurred in the ESG data, software, and services market in 2024.

Out of a total of 459 transactions, 79% were fundraises, and 21% were M&A deals. This is an increase compared to 424 transactions in 2023, where 77% of the deals were fundraises and 23% were M&A deals.

More established companies are looking to acquire ESG companies with innovative products to add to their own capabilities and grow revenues.

Between 2022 and 2024, overall M&A activity in ESG technology has remained stable, while Carbon Accounting M&A deals have grown at a CAGR of 13.3%. Meanwhile, fundraising transactions across the sector have increased at a CAGR of 10.4%, with Carbon Accounting and ESG Reporting emerging as the most well- funded subsectors. These areas continue to attract both new entrants and significant investor interest, with strategic acquisitions shaping the competitive landscape. Investors are actively backing companies to establish market leaders, and we have identified key transactions that highlight the sector’s momentum and consolidation trends.