Climate X has secured $18m to fuel its growth and support leading financial entities in assessing climate impacts on their asset portfolios.
This substantial funding was spearheaded by GV (Google Ventures), with contributions from Pale blue dot, CommerzVentures, A/O, Blue Wire Capital, PT1, Unconventional Ventures, and Western Technology Investment (WTI).
Operating from its base in the UK, Climate X is carving a niche in the $2 trillion climate adaptation market. The company is renowned for providing crucial financial data on how climate risks could potentially affect the valuations of physical assets ranging from residential and commercial properties to critical infrastructures like roads and power systems.
The founders, CEO Lukky Ahmed and COO Kamil Kluza, bring a wealth of experience in corporate risk management to the table.
Their venture, Climate X, leverages a unique model that combines a Digital Twin of the Earth, sophisticated physics, and AI algorithms. This model is bolstered by an extensive database that includes more than 500 trillion data points and a proprietary library encompassing 1.5 billion individual assets and 44 million miles of infrastructure.
The recent influx of capital will be directed towards expanding Climate X’s reach in strategic markets such as Europe, North America, and the APAC region. Initial efforts will focus on bolstering the commercial team at their newly established office in New York, which aims to cater to the burgeoning demand from major financial institutions and real estate investors across these geographies.
Moreover, the funding will facilitate further enhancement of Climate X’s offerings, integrating additional data sources to align with evolving commercial and regulatory landscapes.
Additional insights from the leadership shed light on the company’s trajectory and strategic goals. Climate X CEO Lukky Ahmed shared, “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.”
COO Kamil Kluza also commented on the industry’s future, emphasizing the shift from traditional consultancy-driven approaches to more sophisticated, technology-driven solutions that offer substantial business value.
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