London-based climate risk intelligence firm Climate X has secured €16.8 million ($18 million) in a Series A funding round led by Google Ventures (GV). This investment will accelerate Climate X’s global expansion and help financial organizations assess the impact of climate change on their physical asset portfolios.
The funding round saw participation from Pale Blue Dot, CommerzVentures, A/O, Blue Wire Capital, PT1, Unconventional Ventures, and Western Technology Investment (WTI). Paul Morgenthaler, Managing Partner at CommerzVentures, highlighted the importance of addressing climate risks, stating, “With the escalating risk of floods, heatwaves, wildfires, and other climate impacts, physical risks to properties are growing exponentially. Climate X provides one of the very few tools to quantify them adequately while enabling ROI-based adaptation for individual properties.”
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Advanced Climate Risk Analytics
Climate X offers a data analytics platform that provides insights into how climate risks affect the valuation of physical assets, including residential and commercial properties, as well as infrastructure like roads, rail, and power lines. The platform is used by top financial institutions and asset managers such as Legal & General, CBRE, Virgin Money, and Federated Hermes to make informed investment decisions amid tightening climate risk regulations.
Founders and Vision
Co-founded by CEO Lukky Ahmed and COO Kamil Kluza, Climate X leverages over 30 years of combined corporate risk management experience. Ahmed has led stress testing and risk transformation programs at HSBC and Lloyds Banking Group, while Kluza has modeled risk at Barclays, MUFG, and Accenture. Together, they recognized the need for scalable climate risk modeling in financial services and founded Climate X, which combines digital twin technology, physics, and AI.
Ahmed stated, “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 $6.5T in combined assets under management.”
Utilizing the Investment
The new funding will support the company’s expansion across Europe, North America, and Asia-Pacific (APAC). The company plans to scale its commercial team in its newly established New York office to meet the increasing demand from major financial institutions, global asset managers, and real estate investors. Additionally, Climate X aims to enhance its products by integrating additional data sources to align with evolving commercial and regulatory needs.
Roni Hiranand, Principal at GV, praised the company’s innovative approach: “Climate X is a game-changer that accurately quantifies and addresses the impact of climate risk. We’re excited to support the Climate X team as they work towards becoming the backbone for all climate risk-related decision-making within financial organizations.”
With this substantial investment, the startup is well-positioned to continue revolutionizing climate risk management, providing essential tools for businesses to navigate the complexities of climate-related challenges and opportunities.
