London-listed financial advisory finnCap has taken a stake in sustainability consultancy Energise today as it extends its reach into environmental, social and governance (ESG) advisory.
FinnCap, which floated on London’s junior AIM market in 2018, said it had taken a 50 per cent stake in the firm today for £2.1m, which will be paid as £1.8m cash and new finnCap shares.
FinnCap boss Sam Smith told City A.M. net-zero had shifted up the business agenda as boards grapple with soaring energy costs in the wake of war in Ukraine.
“I think what’s interesting now is it’s not just an ESG agenda for me, it’s actually that energy is very, very expensive, and it’s getting more expensive,” she said.
“And actually, there’s a real cost issue going on as well as the need to look at the need for ESG reasons. There’s actually a cost and a real business case for doing it.”
The acquisition comes as firms increasingly scrutinise their ESG approach in the wake of war in Ukraine, with 39 per cent of firms saying the invasion had led them to reconsider their strategy, according to financial consultancy bFinance.
Smith said the acquisition marked a major step in a diversification plan set out by finnCap bosses when the firm floated in 2018.
Energise, a certified B-Corp and CDP (Carbon Disclosure Project) partner, is targeting 50-70 per cent revenue growth for the current financial year, with plans to expand its offering into culture and Diversity and Inclusion (D&I) consultancy.
Energise boss Simon Alsbury said the acquisition would help the firm ramp up its growth plans.
“We are excited about the opportunity to evolve to support our customers and society in meeting the challenges of today and creating a better future for their organisations, and our society at large,” he said.
“In finnCap we’ve found the right partners to take our impact to the next level.”