Climate risk data firm Climate X raised $18m (EUR16.8m), in an initial funding round, led by Alphabet Inc.’s venture capital arm. The money will be used to support the company’s global expansion and to develop tools that financial institutions can use to assess the impact climate change has on physical assets.
The climate risk intelligence firm said Google Ventures (GV), CommerzVentures A/O, Blue Wire Capital PT1, Unconventional Ventures, and Western Technology Investment were also part of the Series A round.
Climate X, a UK-based company, offers financial insights on the likely impact of climate risk on physical assets, including residential and commercial property, as well as road, rail, and power infrastructure.
Financial institutions and asset managers, including Legal & General CBRE Virgin Money and Federated Hermes, use the firm’s data analysis platform.
Climate X will use its new funding to accelerate expansion in Europe, North America, and APAC. The company will also “advance its products to meet evolving commercial and regulatory needs by incorporating additional sources of data into its platform”.
Climate X CEO Lukky Ahmed said: “In less than a year since Climate X entered the market, it has become one of world’s fastest-growing providers of physical climate data and analytics. This is driving value for global financial service clients with combined AUM of over $6.5trn.
“Assessing impact of physical climate risks on asset valuations, and business operations has become a necessity. It is no longer a nice to have.”
Kamil Kluza said that the climate adaptation market would be a key economic enabler for years to come. However, to date it has been dominated largely by expensive consultancies relying on manual human analysis, and black box solutions which reduce climate risk into a single rating.
Roni Hiranand said, “Climate X has changed the game. It accurately quantifies climate risk and addresses its impact.” We are impressed by Kamil Kluza’s and Lukky Ahmad’s expertise in corporate risk and believe that they have the right skills to create a new-generation climate risk intelligence.
“We are excited to support Climate X as they work toward a vision of becoming a backbone for all climate-related decision making within financial organisations.”
Paul Morgenthaler is the managing partner of CommerzVentures. He said: “With the increasing risk of flooding, heatwaves and wildfires as well as other climate impacts, property risks are increasing exponentially. The world’s largest asset, real estate, is being mispriced.
“Climate X is one of the few tools that can quantify them accurately, while enabling ROI based adaptation for individual properties.”
Pale Blue Dot general partner Heidi Lindvall said: “With climate change at the forefront of everyone’s agenda, it is more important than ever to have the most comprehensive technology solution.”
“Climate X is the best choice for the financial services industry. With their deep domain knowledge, they are the best positioned to serve this market.”
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