ESG Tech-Consultancy WayCarbon Expands Global Scale After Its Acquisition By Santander

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ESG Tech-Consultancy WayCarbon Expands Global Scale After Its Acquisition By Santander

Santander has announced the acquisition of an 80% stake in Brazilian ESG consultancy and carbon markets firm WayCarbon. The transaction is expected to be completed in the second quarter of 2022, and Santander expects a return on invested capital of about 30%-50% in 3-4 years.

For Santander, the deal is a strategic move that incorporates environmental and sustainability expertise to align with the Paris Agreement. By bringing WayCarbon on board, Santander will be able to support its clients as they transition to low carbon business. Moreover, the deal will bolster the Spanish bank's commitment to its own ESG strategy, enabling the bank to engage in key ESG areas such as voluntary carbon markets and reforestation.

This acquisition allows WayCarbon to expand its business international scale and offer ESG and sustainability consulting and technology solutions in Europe and America. With the acquisition, WayCarbon will be able to enhance its capabilities and expand WayCarbon’s offering of specialized products, including its digital platform for ESG, for a broader range of businesses.

Santander's acquisition of WayCarbon demonstrates the growing market demand for energy-transition products. Increasing regulatory pressure is pushing investors to consider ESG factors when making investment decisions and credit ratings. Therefore, firms should demonstrate superior ESG and sustainability management systems and accurate ESG data collection. These needs push firms to increasingly turn to ESG and sustainability solution providers to operationalize their ESG plans and streamline the implementation of carbon management programs. As such, Santander’s acquisition of WayCarbon can pave the way for future partnerships between financial services and ESG solutions providers, which will indeed enhance the financial materiality of ESG and sustainability goals.

Elisa Molero

Industry Analyst

Elisa Molero is an Industry Analyst in the Verdantix ESG & Sustainability practice. Her current research agenda focuses on emerging solutions and global market trends around supply chain sustainability. Her background is in Economics, Leadership and Governance (BSc, University of Navarra). Prior to joining Verdantix, Elisa worked as a research analyst at the Centre For Economic Performance at the London School of Economics, where she completed a Master’s degree in Global Politics, with Distinction.