Climate X raises $18 million

Climate risk intelligence company Climate X has raised $18 million in a Series A investment round led by Google Ventures, and supported by Pale blue dot, CommerzVentures, A/O, Blue Wire Capital, PT1, and Unconventional Ventures and Western Technology Investment.

Founded in 2020, UK-based Climate X offers proprietary financial insights into the likely impact of climate risks on physical asset valuations, from residential and commercial properties to road, rail and power infrastructure. Climate X’s data analytics platform is trusted by financial institutions and asset managers—including Legal & General, CBRE, Virgin Money, and Federated Hermes – to enable smarter investment and portfolio management decisions against a backdrop of tightening regulations regarding capital requirements related to climate risk exposure.

“In just over one year since going to market, Climate X has become one of the world’s fastest growing providers of physical climate risk data and analytics, driving value for global financial services clients with over $6.5 trillion in combined AUM. Assessing the impact of physical climate risk on asset valuations and business operations is now a necessity, not a nice-to-have. By demonstrating how our workflow solutions can drive both top and bottom-line growth, we have redefined physical climate risk solutions from mere compliance tools to competitive advantages that enhance business outcomes for our customers and their clients.” – Lukky Ahmed, CEO at Climate X.

The  Climate X platform allows clients to model the future likelihood of 16 different climate hazards—from extreme heat to tropical cyclones and flooding—across eight warming scenarios over a 100-year time horizon, right down to the individual asset level. Translating these risks into expected annual losses, Climate X’s technology then allows clients to determine the ROI of taking pre-emptive climate adaptation action based on a range of 22 different interventions.

“The climate adaptation market will be a vital economic enabler in the years ahead, yet to date, it has been dominated by expensive consultancies reliant on manual human analysis and black box solutions that reduce climate risk to a single rating or score. We’re breaking the mould with technology designed to drive business value by helping our clients answer critical questions about their asset portfolios and investment strategies: where to buy, where to sell, how to build portfolio resistance, reduce insurance premiums and protect asset values.” – Kamil Kluza, COO at Climate X.