Private equity firm CVC Growth Partners has invested $200 million (£154 million) in EcoVadis, which provides business sustainability ratings for global supply chains.
The transaction represents one of the largest investments in the Environmental, Social and Governance (ESG) space to date.
EcoVadis currently provides supplier ratings to more than 450 enterprises, which use them to evaluate and improve environmental and social performance across their global supply chains.
EcoVadis uses evidence-based assessment methodology which it delivers via a Saas platform and has so far assessed more than 60,000 businesses across 155 countries.
Frédéric Trinel, co-founder and co-CEO of EcoVadis, said: "The combination of global sustainability initiatives, evolving compliance regulations and corporate purpose commitments are putting a new and urgent spotlight on the supply chain – and creating an immense and growing market for our solutions."
Aaron Dupuis, Senior Managing Director at CVC Growth Partners, added: "We have followed EcoVadis for several years as part of our long-standing efforts in supply chain risk management, where we identified ESG as a particular area of focus for best-in-class companies, and are incredibly excited about the immense opportunities that lie ahead for the company, as it continues to establish itself as the gold standard for ESG ratings.”