Montréal’s Novisto has acquired the United Kingdom (UK)-based carbon accounting software startup Minimum to expand its environmental, social, and governance (ESG) platform.
Charles Assaf, Novisto
“We are delivering a centralized system of record that allows enterprises to manage their climate impact and regulatory obligations.”
The financial terms of the deal, which marks Novisto’s first acquisition to date, were not disclosed. It comes a year after Novisto closed $37.7 million CAD in Series C financing to broaden its offering, fuel its European expansion plans, and achieve profitability.
Founded in 2019 by CEO Charles Assaf, chief information officer Marian Borca, and product evangelist Edouard Clement, Novisto helps big businesses track and evaluate their ESG performance.
Novisto says the current ESG software market is fragmented, forcing enterprises to juggle up to a dozen different tools. According to Novisto, this strategic acquisition positions the company to provide enterprise clients with a unified, “all-in-one” solution for managing, reporting, and analyzing ESG data amid an increasingly complex regulatory landscape.
As new ESG reporting regulations come online in the UK, the European Union, California, and Australia, pressure is on firms in those jurisdictions to ensure they are aligned.
“Our mission has always been to bring financial-grade rigour to sustainability, giving the world’s largest organizations the confidence, structure, and accountability they’ve long relied on in finance,” Assaf said in a statement. “By embedding Minimum’s specialized carbon technology, we are delivering a centralized system of record that allows enterprises to manage their climate impact and regulatory obligations with absolute confidence.”
The Minimum deal also expands Novisto’s European footprint. Minimum’s London office will remain open and bring the combined company’s total UK headcount to 34 employees.
“Customers are looking for a unified way to manage their sustainability and carbon data without compromising on depth or rigor,” Minimum CEO Chris Winchurch said in a statement. “We are thrilled to join forces with Novisto to deliver on this clear market need while continuing our mission to make carbon accounting easy and accessible.”
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ESG is a framework used to measure an organization’s business practices and performance from a social and sustainability perspective. ESG-focused investors consider a company’s climate change initiatives; diversity, equity and inclusion; and corporate transparency.
Novisto and Minimum had been partners for three years, supporting more than 30 joint clients. During this time, Novisto became familiar with Minimum’s tech, talent, and expertise in the UK and European markets. The two firms already offer a single-sign-on experience.
Novisto said existing customers of both companies will retain their current contract terms, and both platforms will be supported without interruption.
From a product standpoint, Novisto aims to deliver a unified user experience and an AI-driven dashboard for ESG and carbon metrics later this year, while continuing to support integration with other specialty carbon platform partners.
Feature image courtesy Novisto.