Sustainable finance-focused ratings and research provider EthiFinance and sustainability data and technology company ESG Book announced a merger transaction aimed at creating one of Europe’s largest, independent credit and sustainability rating agencies.
The companies said that the new entity will provide a European rating “champion,” offering an alternative to U.S.-based incumbents, and fill a sustainable data gap in private markets, strengthening the link between financial and nonfinancial value drivers.
ESG Book CEO Justin Fitzpatrick said:
“As the market focuses on data-driven materiality, Europe needs a homegrown champion that combines local market knowledge and global capabilities. With deep experience in sustainability data and credit analysis, the combined company is perfectly positioned to support the next phase of development in the sustainable finance market.”
Launched in 2004, Paris-based EthiFinance is an independent European credit and sustainability rating agency, providing investors, banks, insurance companies, and corporates with analysis and ratings to help navigate the challenges of environmental and societal transformation. The firm utilizes a double materiality approach to help clients manage credit risk alongside environmental and social factors.
Frankfurt-based ESG Book, formerly Arabesque S-Ray, is a sustainability risk and compliance platform for global financial institutions. The company was established in 2018 and incubated as a subsidiary of Arabesque Group, a group of financial technology companies offering sustainable investment, advisory, and data services. ESG Book provides data, scoring, and technology products ranging across ESG and climate data, portfolio-level scores, advanced analytics tools, and a proprietary SaaS data management and disclosure platform.
The companies said that the transaction combines their complementary data, ratings, and analytics of the two firms to provide financial institutions and corporate issuers with European-market expertise with global capabilities. The combined offerings will include ESG and credit ratings, sustainability and credit data, portfolio analytics, regulatory reporting, benchmarking, and supply chain risk management.
Operating under the EthiFinance brand, the new combined organization will have more than 300 employees across Europe, the U.S., India, and Japan, serving over 500 clients and providing coverage of more than 10,000 issuers globally.
Carol Sirou, EthiFinance CEO, said:
“By combining our strengths, we have the best platform to meet the needs of financial institutions and corporate issuers in a fastmoving market. EthiFinance and ESG Book bring together expertise in sustainability and credit ratings with a proprietary technology platform to provide market participants with a robust European infrastructure built for global reach.”
