Nasdaq to Acquire Sustainability Software Leader Metrio, Expanding Its Suite of ESG Solutions

As part of its deepening commitment to serving stakeholders’ environmental, social and governance (ESG) needs, Nasdaq has entered into an agreement to acquire Metrio, a Montreal-based provider of ESG monitoring, analytics and reporting services, expanding Nasdaq’s suite of ESG solutions. By integrating Metrio’s software platform, Nasdaq will be able to provide corporate clients with solutions to address the full depth and breadth of ESG data collection, data management and data disclosure challenges, no matter where they are on their ESG journey.

Founded in 2009, Metrio provides a flexible and scalable end-to-end platform that generates investor-grade corporate sustainability reporting that can be shared with myriad stakeholders, creating operational and financial value. The software simplifies the ESG reporting process by increasing automation across all steps and enabling clients to collect quantitative and qualitative ESG data, as well as measure customized key performance indicators.  

More specifically, Metrio’s solution can analyze CO2 emissions, waste, gender equality, community investment, and more. The software-as-a-service platform is also compatible with a variety of ESG frameworks, standards and ratings integrated within Nasdaq OneReport, such as including Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), Task Force on Climate-Related Financial Disclosures (TCFD) and the United Nation’s Sustainable Development Goals (SDGs), as well as MSCI, Sustainalytics, Principles for Responsible Investment (PRI) and Institutional Shareholder Services (ISS).  

“We are tremendously proud of the market leading reporting solutions our team has built over the last decade,” said Patrick Elie, Chief Executive Officer and Co-Founder of Metrio.  

“We are excited to be part of Nasdaq as we seek new opportunities to bring our solutions to a wider set of stakeholders and increase our impact,” added Pierre-Alexandre Hurtubise Chief Operating Officer and Co-Founder of Metrio. 

The deal comes as the demand for corporate sustainability reporting rises, particularly given the evolving regulatory reporting requirements and investor trends. According to a 2021 PwC survey, 83% of investors said it is crucial that ESG reporting provide detailed information about progress toward ESG goals. The survey also found that investors want a consistent set of metrics for measuring ESG performance, with 73% saying that it’s important to be able to compare ESG performance across companies.  

Since the survey, the U.S. Securities Exchange and Commission has proposed updated climate-related disclosure rules that would require companies to include climate information in annual reports (Form 10-K) and quarterly reports (Form 10-Q). The rules are based on principles from the TCFD and the Greenhouse Gas Protocol (GHG).

Over the next several months, we expect to see similar measures taken in other jurisdictions around the globe. As we embark upon the next phase of evolution and the continued drive towards disclosure, the demands to serve varying stakeholder needs across multi-faceted obligations will necessitate more data, more KPIs and a greater ability to disseminate and communicate ESG information at speed. The acquisition of Metrio would not only help enhance corporate sustainability reporting with a complementary approach to Nasdaq OneReport’s ESG workflow and reporting platform but also create synergies with other IR and ESG solutions for corporate clients offered by Nasdaq, including Nasdaq ESG Advisory services, carbon marketplace Puro.earth, and governance solutions. By integrating Metrio’s platform into the overall suite, Nasdaq clients would be even better positioned to strategically address the full depth and breadth of ESG needs with agility as the landscape continues to grow and evolve.

“Metrio’s platform is complementary to Nasdaq’s end-to-end suite of sustainability reporting solutions and will accelerate our ability to support corporate clients who are looking for improved reporting technology across all three pillars of ESG,” said Michael Bartels, Senior Vice President, IR & ESG Services at Nasdaq. “We expect current and prospective clients to benefit from a flexible platform that collects, measures and analyzes corporate sustainability data, as well as generates investor-grade reports in real-time, which can be adapted for and shared with multiple stakeholders.” 

With Metrio set to become the latest offering to join Nasdaq’s suite of ESG solutions, Nasdaq continues to make meaningful advancements toward its mission of maturing the ESG landscape by focusing on measuring commitments and outcomes.  

“We are a disclosure economy,” Friedman said during an interview with CNBC. “It’s now a matter of tracking progress. We’re moving into the second phase of ESG, which is how quickly companies can move along and make a difference and have an impact—the only way we can measure that is if it’s disclosed.”  

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Sustainability Data and Analytics Mergers & Acquisitions

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