With an acquisition, the Munich startup Code Gaia is sharpening its focus on product compliance: its parent company, House of Gaia Holding, is buying Codio Impact, a software provider specializing in environment, social, and governance (ESG). The transaction is intended to expand Code Gaia’s software so that companies can map ESG requirements at the product level in the future.
Following an initial wave of regulations around sustainability, requirements at the product level are increasingly coming into focus. One example is the European Packaging and Packaging Waste Regulation (PPWR), which introduces new requirements for packaging and the use of recycled materials. There are also additional regulatory frameworks such as the EU Deforestation Regulation (EUDR) for deforestation-free supply chains and the Ecodesign for Sustainable Products Regulation (ESPR) with requirements for sustainable products. Likewise, the Digital Product Passport for product-related information throughout the product lifecycle, as well as the REACH chemicals regulation and the RoHS Directive, which restricts certain hazardous substances in electrical and electronic equipment. With the acquisition, Code Gaia aims to align its software and thus its customers early on with these developments.
Acquisition expands product compliance
Codio Impact focuses on industrial sectors such as construction, waste management, and utilities, and combines ESG software with AI-powered industry recommendations.
Tilman Kemper, co-founder of Codio Impact, says:
“Mid-market companies, often family-led, don’t think in quarters. They plan in generations. They need a solution that makes economic sense. (…) Every industry operates differently and our customers are looking not just for sustainability, but also for sector-specific expertise.”
Kemper is taking on a leading role at Code Gaia in the partnerships area. His co-founder Sonja Radovic Paul becomes Legal Counsel and will bring a legal perspective on growing ESG requirements.
Code Gaia already offers a PPWR module according to its own information, which will be expanded as soon as new requirements are finalized. This principle – gradually adapting the software to new regulatory requirements – is intended to apply to the entire portfolio in the future. The goal is a platform that continuously adapts to changing requirements and supports companies in the long term in implementing new ESG regulations.
Markus Adler, CEO of Code Gaia, says:
“Sustainability in mid-market companies can only be economically profitable if companies are able to respond quickly to regulatory changes. That’s exactly what we deliver with Code Gaia software, which we continuously develop. With Codio Impact, we’re now bringing industry expertise in-house.”
The acquisition is already the second strategic move by House of Gaia Holding within a few weeks. Just in May, the ESG software providers Code Gaia and I Planted merged to build an integrated provider for holistic sustainability management in mid-market companies.
