A London-based climate risk analytics provider has raised £4.1 million in seed funding from VCs and professional services firm Deloitte.
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.
Climate X addresses this market gap by providing tools to meet these statutory requirements. It delivers location-specific risk ratings and loss estimates for extreme weather events linked to climate change through to the year 2100, under multiple warming scenarios.
Its Spectra platform, available online or as an API data feed, covers a comprehensive range of hazard types and claims to achieve up to 95% performance accuracy. The tool enables firms to build resiliency by incorporating climate risks into business decisions, pricing and investment strategies.
CommerzVentures and A/O PropTech led the round, joined by Voyagers Climate Tech Fund, Blue Impact Ventures, Deloitte LLP and angel investors including David Rowan (founding Editor-in-Chief at WIRED), Kat Borlongan (former Director at La French Tech) and Renaud Visage (co-founder and former CTO at Eventbrite).
“Climate X is a standout example of a climate FinTech that is solving a multi-trillion-dollar problem for the financial industry,” said Paul Morgenthaler, managing partner at CommerzVentures.
“They’re enabling decision-makers to place climate mitigation and resilience at the heart of their strategy, delivering the visibility that is essential to creating a sustainable business model.
“We look forward to working with the team as they accelerate their platform’s expansion internationally.”
Gregory Dewerpe, founder of A/O PropTech, said: “Accurately quantifying exposure to climate risk is now an economic, statutory, and moral necessity. Without concerted action, extreme weather events have the potential to cost trillions of dollars to the global economy.
“The built world will bear the brunt of this. Climate X’s platform gives a range of actors across many industries the tools they need to understand, assess, predict and report the exposure of their physical assets to ecological challenges – and in doing so enable them to start planning and investing accordingly to reduce future losses and pain.”
Louise Brett, Head of FinTech and Financial Services Innovation, Deloitte North and South Europe, commented: “At Deloitte Ventures, we work with the UK’s most visionary start-ups, to harness the potential of emerging technology and innovation in a way that helps to solve some of the biggest challenges our clients are facing today.
“Climate change is an intimidating challenge facing every business, but by collaborating with Climate X we will equip our clients with vital data which will inform their Net Zero strategies and accelerate their response to climate-related risks.”