Climate X, a London-based purpose-driven startup, has completed its pre-seed raise of €1.3 million – ushering in a new era of climate intelligence that will help businesses, governments and individuals around the world build a stronger, climate-resilient future.
Pale Blue Dot, one of Europe’s premier climate-focused Venture Capital firms, led the oversubscribed round. Other investors include UK-based Blue Wire Capital, US-based VC’s A100x and Possibilian, Hong Kong’s Jennifer Cheng’s NewChic Family Office and strategic angel investors from around the world.
Founded earlier this year, Climate X set out to change the way the world manages assets, infrastructure and investments by lifting the lid on future climate risks.
Climate change is one of the most pressing and urgent challenges faced by the global community. The threat of physical risks like flooding, wildfire, hurricanes and drought is real and has been accelerating every year. More recently, we’ve seen record breaking temperatures gripping cities around the world, resulting in electrical grid failures, extreme drought and devastating wildfires. As we step into an uncertain future, the need to understand these risks not only now but also in decades to come has never been more critical.
Climate X addresses this need with their data and analytics. The London-based startup uses a blend of physical risk models and machine learning to automatically project how extreme weather events linked to climate change could impact millions of specific assets or locations anywhere in the world, up to 80 years into the future. To bring the impacts into the real-world, Climate X also calculates how exposure to extreme weather events could impact the value of assets.
The Climate X team is building infrastructure to ensure the tens of thousands of companies worldwide, who need to assess their climate risks, can understand the data they’ll be using to inform their investments and business strategies. The final solution promises to be compliant also with incoming government regulations mandating large and listed companies to provide climate disclosures from as early as 2022, as well as Central Bank requirements for financial institutions to undertake climate scenario analysis and stress testing for the first time.
Kamil Kluza, Climate X co-founder and Chief Product Officer, stated: “Climate X is bridging a gap between regulatory requirements and latest technology. We’ve built a ‘glass box’ solution combining remote sensing, a digital twin of the Earth and machine learning. By carefully balancing these components, we help satisfy both regulators, who require transparency, and users, who need detailed and understandable climate intelligence at asset-level scales.”
Lukky Ahmed, Chief Executive Officer of Climate X, added: “It simply doesn’t make sense that climate risks aren’t factored into pricing, valuations or investment strategies. The limited data available in the market was fragmented or assembled in ways that didn’t stand up to our scrutiny, so we decided to partner with leading climate scientists and academia to create it ourselves. Climate X creates the vital link between macro-level climate change events and location-specific intelligence, enabling pro-active actions to build a more climate-resilient world.”
Climate X is set to release its final product to the UK market by the end of 2021, with plans for rapid international expansion in 2022.