Impact Investing | June 26, 2024

ClimateX raises $18 million to help companies and investors manage growing climate risks

Amy Cortese
ImpactAlpha Editor

Amy Cortese

Climate-driven weather extremes cost the world more than $16 million per hour, according to the World Economic Forum. The realities are hitting home as many regions of the world endure a withering heat wave and regulators begin mandating climate risk reporting.

ClimateX’s AI-based data analytics platform helps companies model physical climate risks for assets almost anywhere in the world and take pre-emptive action.

The London-based company says it has amassed 500 trillion data points including information on individual assets and infrastructure to create a “digital twin” of the Earth. “Assessing the impact of physical climate risk on asset valuations and business operations is now a necessity, not a nice-to-have,” said Lukky Ahmed of ClimateX.

The company’s $18 million Series A round, led by Google Ventures with participation by Pale blue dot, CommerzVentures, A/O, Blue Wire Capital and others, will support its expansion.

 Scenario planning

ClimateX models the likelihood of events such as flooding, extreme heat and cyclones under scenarios including worst-case policy environments. It then calculates the costs of those events and identifies pre-emptive adaptation solutions, enabling companies and portfolio managers to make informed decisions.

Ahmed and his cofounder Kamil Kluza spent years modeling risk and stress testing for major banks. ClimateX customers include Legal & General, Federated Hermes and real estate firm CBRE.

Separately, Berlin-based LiveEO raised €25 million ($32 million) in a Series B funding round to expand its AI-based satellite data to help infrastructure providers respond to extreme weather events, detect deforestation and manage climate risks. NordicNinja, a Japan Bank of International Cooperation-backed venture firm, led the round.