Sphera for Sale? Blackstone Explores Sustainability Software Exit

Private equity firm Blackstone is seeking to potentially sell Sphera, the major sustainability software and consulting services company, Reuters reported. The potential asking price: About $3 billion, according to the report.

Blackstone acquired Sphera for $1.4 billion in 2021. Fast forward to 2024, and Sphera acquired SupplyShift, a supply chain sustainability software company. Financial terms of that deal were not disclosed.

Sphera Business Background

Sphera, founded in 2016, is based in Chicago, Illinois. The company's roots extend back roughly 33 years. Sphera develops ESG performance and risk management software. The company also offers data and consulting services focusing on Environment, Health, Safety & Sustainability (EHS&S), Operational Risk Management (ORM), Product Stewardship and Supply Chain Risk Management (SCRM). The firm has 1584 employees listed on LinkedIn s of April 2025. Moreover, the software company services 8,400 customers.

Sphera certainly ranks among the largest and best-known providers of sustainability software. But it's unclear how much M&A interest the company will attract amid the shifting U.S. political climate and various financial market headwinds.

Will Blackstone Sell Sphera? The Challenges

Among the potential M&A challenges to note:

• U.S. Climate Policies: Under United States President Donald Trump, the federal government has scaled back or scrapped multiple sustainability and climate initiatives. The U.S. is now pressuring various European Union (EU) members to abandon climate-centric energy strategies in favor path of “energy freedom” efforts,, according to Bloomberg.
• European Union Climate Policies: At the same time, EU members have been reconsidering and scaling back the Corporate Sustainability Reporting Directive (CSRD), a compliance regulation that involves EU companies -- as well as international companies that do business in the EU.
• Trump Tariffs: Existing and threatened Trump tariffs has triggered financial market turbulence and some recession fears worldwide. The financial "uncertainty" has cooled M&A acitity.
• Interest Rates: Some private equity firms continue to delay acquisitions until interest rates decline. If rate cuts arrive, it will allow PE firms to finance acquisitions on more favorable financial terms.

Why Private Equity or Strategic Suitor May Buy Sphera: ESG Software Market Growth Forecast

Despite those headwinds, ESG software market forecasts remain upbeat. Various firms predict the ESG software market will generate a 16.9% to 18.4% compound annual growth rate (CAGR) over the next few years. Among the forecasts to note:

1. Grand View Research predicts the ESG software market will reach $2.73 billion by 2030, a 17.3% CAGR from 2024.
2. SkyQuest predicts the market will reach US$3.06 billion by 2032, a 16.9% CAGR from 2025.
3. MarkNtel Advisors predicts the market will reach $2.6 billion by 2030, an 18% CAGR from 2025.
4. Stratistics MRC estimates the market will reach US$2.5 billion by 2030, an 18.4% CAGR from 2024.

We'll be watching if Sphera attracts potential buyers -- and at what purchase price.