ESG-X

ESG-X, founded in 2023 by Paolo Mazza, Jean Phillip Bauer, and Valentin Aman, is a Munich-based company that has developed an AI-driven software platform for corporate sustainability reporting. The firm targets the growing need for transparent and compliant Environmental, Social, and Governance (ESG) disclosures, a market expanding due to EU legislation that is expected to affect up to 200,000 companies.

The company's core offering is a B2B software-as-a-service (SaaS) solution designed to simplify and automate the creation of ESG reports, with a particular focus on the Corporate Sustainability Reporting Directive (CSRD). This platform streamlines compliance with EU regulations by using proprietary databases and large language models (LLMs) to digitize non-financial reporting. Key functionalities include automating the mandatory materiality assessment, which identifies relevant topics for disclosure, mapping a company's existing data to CSRD requirements, and providing support to address data gaps. The system is engineered to understand specific company situations to predict with high accuracy which topics require disclosure. For small and medium-sized enterprises (SMEs), the software offers accessible and affordable solutions for tasks such as carbon accounting (Scope 1, 2, 3) and navigating the complexities of ESG risk and opportunity analysis.

A significant aspect of ESG-X's platform is its data protection-friendly infrastructure, which is designed to be in line with the European AI Act. This positions the company to cater to businesses that prioritize data privacy and regulatory adherence. The business model is centered on providing this technology to help organizations efficiently meet their ESG requirements and communicate sustainability efforts to stakeholders. While currently unfunded, ESG-X has garnered support from accelerator programs including Ignition+, Munich Innovation Ecosystem, and Xpreneurs.

Keywords: ESG reporting, CSRD compliance, sustainability software, corporate sustainability, non-financial reporting, AI-driven platform, materiality assessment, carbon accounting, EU regulations, B2B SaaS, ESG data, sustainable finance, climate reporting, ESG automation, data gap analysis, environmental social governance, regulatory technology, SME sustainability, strategic planning, risk management