Europe’s ESG Drive and Apiday: A New Era of Compliance
3 min read
European regulations are making Environmental, Social, and Governance (ESG) reporting essential, not optional anymore. For startups like Paris-based Apiday, this is creating new opportunities. Their platform helps private equity funds and big companies track sustainability practices.
Targeting Asset Management Firms
Apiday focuses heavily on asset management firms, especially in Europe. The Sustainable Finance Disclosure Regulation (SFDR) means all firms, not just impact funds, are keen on ESG reporting. This was different when Apiday started in 2021, as the focus on ESG has now significantly increased.
Addressing ESG Ratings Criticism
Apiday’s CEO, Édouard Audi, interacted with Elon Musk’s criticism of ESG ratings and agreed that they have their limitations. However, he emphasizes that Apiday aims to use ESG for creating value, not just for regulatory compliance purposes.
This company just raised €10 million in Series A funding to expand further in a market with stiff competition from companies like AlphaSense, Dataminr, Sesamm, and Truvalue Labs.
Combining AI and Human Expertise
Apiday uses a mix of AI and human expertise to save customers time. This combination makes it stand out from both new and old competitors, says Audi. Their unique approach is also demonstrated through their expansion plans.
They already have clients in 23 countries and generate 60% of their sales from outside France. Now, they plan to open offices in Germany and the U.K., aiming to grow their team from 40 to 70 employees in the next year.
Inspired by Past Ventures
Before Apiday, Audi co-founded LeCab, a ride-hailing company. This experience motivated him to delve into the ESG space. LeCab was better in some ESG aspects compared to competitors but lacked the metrics to prove it.
Investor engagement with ESG is different now. An important new regulation, the Corporate Sustainability Reporting Directive (CSRD), will also boost ESG reporting on the corporate side. “The importance of ESG data will increase dramatically over the next few years,” says Stanislas Lot from Daphni, who led the funding round.
Data is just the beginning. What truly matters is what you do with it. Apiday helps its clients develop actionable roadmaps, including 350 actions to improve ESG practices.
Backing from Investors
Apiday’s Series A funding attracted investors like AENU, Daphni, Galion.exe, SWEN Capital, Speedinvest, and Revent. These backers are excited about Apiday’s future, especially its focus on asset management firms.
The company aims to leverage this new capital to enhance its product offerings for its growing client base.
Looking Ahead
With the new funding, Apiday hopes to strengthen its position among asset management firms. They’re not just looking at compliance but also innovation in ESG practices.
As more companies focus on sustainability, firms like Apiday will play a critical role in shaping future business landscapes.
Their unique blend of AI and human insight ensures they will remain competitive in a rapidly evolving market.
Challenges and Opportunities
The increased focus on ESG also brings challenges, such as scrutiny and the need for robust metrics. Companies must navigate this carefully to maintain credibility and impact.
Tools and platforms like Apiday are essential in guiding businesses through this complex landscape, providing the necessary insights and support.
These services are becoming indispensable, especially as regulations and expectations continue to evolve.
As European regulations around ESG tighten, companies like Apiday are stepping up to meet the challenge. Their innovative blend of AI and human expertise is not just about compliance but creating real value. With new funding and a robust expansion plan, Apiday is well-positioned to be a leader in ESG practices.
The future of ESG reporting looks promising, thanks to companies like Apiday that are making it easier and more effective. Their unique approach could shape how businesses worldwide adopt and implement sustainability measures.
About The Author
