Europe remains committed to ESG, with Apiday aiding corporate compliance

European Regulations Propel ESG Reporting into Necessity

European regulations are transforming Environmental, Social, and Governance (ESG) reporting from a voluntary effort into a mandatory practice. This shift is creating significant opportunities for startups like Paris-based Apiday. Apiday's platform caters to private equity funds and top-tier companies that need to monitor and manage sustainability efforts. A key target group for Apiday has been asset management firms, particularly in Europe, spurred by the Sustainable Finance Disclosure Regulation (SFDR). This regulation has caused a wide array of firms, beyond just impact funds, to prioritize ESG reporting. The current landscape is quite different from when Apiday was founded in 2021, but it has paved the way for numerous players in the field.

CEO Édouard Audi has stated that while there are inherent limitations in current approaches to ESG data, his focus with Apiday is on leveraging ESG for value creation rather than mere compliance. Apiday has recently secured €10 million in a Series A funding round to fuel its growth amidst steep competition from well-funded companies. The company, similar to its rivals, utilizes artificial intelligence to streamline processes for its clients but also distinguishes itself by offering human expertise in ESG consulting. This blend of AI technology and human insight is what Apiday believes sets it apart in the industry.

Expansion and Growth

Apiday's ambitious expansion strategy is another key differentiator. With clients spanning 23 countries and 60% of sales coming from outside France, Apiday plans to bolster its presence in Europe by opening new offices in Germany and the United Kingdom. The company is also gearing up to expand its team from 40 to 70 employees within the next year. This latest funding round is expected to enhance Apiday’s reputation among asset management firms, which are increasingly focusing on ESG metrics.

The journey of CEO Édouard Audi into the ESG space began after previously co-founding a ride-hailing company. Audi observed that despite outperforming competitors in some ESG aspects, the lack of robust metrics meant these efforts were not adequately recognized. This experience inspired him to co-found Apiday with former investor Charles Moury. The importance of ESG data is set to surge even further with the imminent Corporate Sustainability Reporting Directive (CSRD), which aims to enhance the transparency and quality of ESG reporting across corporations.

Future of ESG Data

Stanislas Lot, the partner who led Apiday's funding round at Daphni, echoed the sentiment that the significance of ESG data is poised to grow dramatically. However, Lot emphasized that data collection is just the starting point; the real value lies in what can be achieved with that data. Apiday supports its clients by developing strategic roadmaps that include around 350 actionable steps to enhance their ESG practices beyond mere compliance. While investment funds have already reached this stage, Apiday expects corporates to catch up soon, offering an intriguing dynamic to observe moving forward.

Backing Apiday in its Series A round are notable investors including AENU, Daphni, Galion.exe, SWEN Capital, and existing investors Speedinvest and Revent.