MioTech seeks more partnerships to expand ESG data services in the face of stricter disclosure rules

MioTech, a company that provides sustainability data and software, will forge more partnerships with rating and verification firms to expand its business and help clients meet regulatory requirements, said founder and CEO Jason Tu.

With all major global sustainability standards now available on the company’s data platform, the Hong Kong-based company aims to expand its product offering across core markets in mainland China, Hong Kong, Taiwan, South Korea and Southeast Asia.

“Our next step is to develop more products for specific industries where big brands are driving demand for supply chain sustainability disclosures,” Tu said in an interview. “Many export-oriented manufacturing companies are rushing to increase their ESG efforts to gain a competitive edge over their rivals, especially in the European market.”

In recent months, the company has partnered with rating and auditing firms to give customers direct access to their services on the MioTech platform, Tu said. This, in turn, will drive the company’s growth and market share, he added.

For example, MioTech and the Singaporean subsidiary of sustainability and safety certification provider TÜV SÜD have signed an agreement for TÜV to help MioTech customers verify reports. Similar agreements have been signed with TÜV’s South Korean unit and TÜV Rheinland China, and more will be sought in other regional markets, Tu said.

MioTech claims to be Asia’s largest provider of ESG (environmental, social, governance) data and software. It was founded in 2016 to offer analytics to financial institutions at a time when ESG reporting and disclosure was gaining popularity.

Tu said MioTech has developed software that helps exporters in the textile, chemical and palm oil industries comply with European Union regulations. The rules, which came into effect in December, require due diligence to ensure products shipped to customers are deforestation-free, he said.

MioTech also wants to help exporters of electric vehicle batteries, solar panels and other technology products meet EU requirements on safety, carbon footprint and recycled content, which will be phased in from 2026.

Tu said further EU regulation on ESG disclosure can be expected to increase demand for data collection and reporting tools.

These include the Carbon Border Adjustment Mechanism, which this year imposed a carbon footprint declaration requirement on six high-carbon products exported to the EU, followed by import tariffs from 2026. More product categories may be added in the future.

The EU Corporate Sustainability Reporting Directive will also require many non-EU companies operating in the region to comply with new ESG disclosure standards from 2026.

MioTech counts HSBC, JPMorgan Chase and Moody’s among its shareholders and clients. About half of its 2,000 clients are public companies that use its software to disclose regulatory and market information. Its biggest competitors are consulting firms that outsource ESG disclosures.

“We’re actively trying to convince potential clients to switch from consultants to software,” Tu said. “The biggest barrier for them is the size of the sustainability team. They risk losing data and knowledge if they move away from their consultants.”

MioTech has raised more than $100 million in five funding rounds since launch. Other investors include tycoon Li Ka-shing’s Horizons Ventures, Singaporean wealth fund GIC and Chinese financial group Guotai Junan International.

The latest round in January was led by U.S. venture capital firm B Capital, which focuses on technology, healthcare and climate, a subsidiary of Boston Consulting Group. Given the tough stock market, the firm will prioritize alternative capital markets operations to fund its growth.

“We have always planned to do an initial public offering, but in this environment, an IPO is not the only option,” Tu said. “We are now focused on joining forces with other players to build a larger ecosystem, not only for business development but also for capital collaboration.”