Founded in 2020 and based in the UK, Climate X provides proprietary financial insights into the potential impact of climate risks on physical asset valuations, including residential and commercial properties, as well as infrastructure such as roads, railways, and power systems.
The company’s data analytics platform is trusted by financial institutions and asset managers—including Legal & General, CBRE, Virgin Money, and Federated Hermes—to facilitate smarter investment and portfolio management decisions amid increasing regulations on climate risk exposure.
The Climate X platform enables clients to model the future likelihood of 16 different climate hazards, including extreme heat, tropical cyclones, and flooding, across eight warming scenarios over a 100-year time horizon. This analysis is conducted at the individual asset level. By translating these risks into expected annual losses, Climate X’s technology allows clients to determine the ROI of pre-emptive climate adaptation actions, evaluating a range of 22 different interventions.
Lukky Ahmed, CEO at Climate X, said: “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.”
Kamil Kluza, COO at Climate X also commented, saying: “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.”
He added: ” 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.”
