UK-based Climate X, a firm providing financial insights on climate risk impacts, has raised $18 million in Series A funding from investors such as Google Ventures.
The company’s platform, Spectra, uses a ‘Digital Twin of the Earth’ model to assess climate hazards for specific properties, helping clients like Legal & General and CBRE translate risks into expected losses.
Additional participants in the funding round include Pale blue dot, CommerzVentures, A/O, Blue Wire Capital, PT1, Unconventional Ventures, and Western Technology Investment (WTI). Climate X provides financial insights on climate risk impacts to various physical assets, including residential properties and infrastructure.
The company’s unique risk assessment model uses a combination of Digital Twin of the Earth, physics and AI, underpinned by more than 500 trillion data points, including a proprietary library of 1.5 billion individual assets and 44 million miles of infrastructure.
Climate X was co-founded by CEO Lukky Ahmed and COO Kamil Kluza, both of whom have extensive experience in financial risk management. The Spectra platform forecasts the likelihood and impact of 16 climate hazards over the next century for specific properties, using scenarios of different warming levels.
CEO Ahmed highlighted the company’s rapid growth and announced that the new funding would support expansion across Europe, North America, and Apac, with an initial focus on bolstering the commercial team in New York. Climate X also plans to enhance its platform by incorporating additional data sources to meet evolving commercial and regulatory requirements.
Lukky Ahmed commented: “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.”
