Climate change-related risks are expected to cost the global economy up to $23 trillion by 2050, disproportionately impacting marginalised communities. The U.K. government has already announced mandatory climate-related financial disclosures by public and private enterprises, enforceable for financial reporting periods, starting on 6 April 2022. Financial institutions are also attempting to quantify their exposure to climate risks following similar regulatory requirements introduced by the Bank of England – a tall order for even the most capable internal teams.
However, data and tools to assess and manage climate change-related risks have been historically limited and have struggled to meet the increasingly sophisticated needs of customers and regulators.
Addressing this market gap by providing the advanced tools necessary to meet these statutory requirements, London-based Climate X has raised €6.3 million funding. The round was led by CommerzVentures and A/O PropTech and saw the participation of Voyagers Climate Tech Fund, Blue Impact Ventures, Deloitte LLP and angel investors, including David Rowan (ex-WIRED), Kat Borlongan (La French Tech) and Renaud Visage (Eventbrite). The startup will use the new funding to service growing customer demand and expand the product offering.
Climate X’s on-demand climate risk data analytics platform Spectra acts as a vertically integrated solution that covers a comprehensive range of hazard types and achieves up to 95% performance accuracy. It enables firms to meet regulatory compliance and build resiliency by incorporating climate change-related risks into business decisions, pricing and investment strategies.
Lukky Ahmed, co-founder and CEO, Climate X said: “This investment accelerates our ability to scale our climate risk analytics solution, Spectra, and to smoothen the path for governments and businesses worldwide to use data they understand and trust to make multi-generational climate-informed decisions.”