Google-Backed Climate X Raises $18M to Expand Climate Risk Platform

London-based startup Climate X has raised $18 million in a series A funding round to advance its climate risk analytics platform.

Founded in 2020, the startup provides businesses with insights into potential climate risks to their assets. Climate X’s data analytics platform combines a digital twin of Earth with AI and physics tools to uncover environmental insights based on more than 500 trillion data points.

The platform allows clients to model the likelihood of 16 different climate hazards, from extreme heat to flooding, over a 100-year timeframe. The startup claims the platform is as easy to navigate as Google Maps.

Google’s venture arm (GV) led the round. Pale blue dot, Blue Wire Capital and Unconventional Ventures also participated. CommerzVentures, A/O and Western Technology Investment also joined the round.

Climate X plans to use the funds to accelerate its expansion in Europe, North America and Asia.

Having recently opened an office in New York, the startup will look to grow its commercial team to target demand from financial institutions, asset managers and real estate investors. 

The company will also look to integrate additional data sources into its platform.

“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 assets under management,” said Lukky Ahmed, Climate X’s co-founder and CEO. “Assessing the impact of physical climate risk on asset valuations and business operations is now a necessity, not a nice-to-have.

Related:Jeff Bezos Launches $100M AI Challenge for Climate, Nature Initiatives

“By demonstrating how our workflow solutions can drive both top and bottom-line growth, we have redefined physical climate risk solutions from mere compliance tools to competitive advantages that enhance business outcomes for our customers and their clients.”

With each passing year, the climate crisis increasingly causes unpredictable weather events and rising global temperatures.

Figures from the National Climate Assessment suggest that extreme weather events cost the U.S. $1 billion every three weeks — compared to every four months in the 1980s.

Climate X provides risk intelligence to asset owners, using an array of data sources and digital technologies to provide an overview of potential impacts to properties.

The platform provides insights for residential and commercial properties, as well as road, rail and infrastructure sites.

The startup claims its platform can empower investors to make savvier portfolio decisions, providing them with a way to determine the potential return on investment for making pre-emptive action on prospective sites at increased risk of climate disruptions. 

Related:Google Uses AI to Detect Floods a Week in Advance

Financial institutions and asset managers including Virgin Money, Legal & General and Federated Hermes are among those already leveraging the startup’s solutions.

“The climate adaptation market will be a vital economic enabler in the years ahead, yet to date, it has been dominated by expensive consultancies reliant on manual human analysis and black box solutions that reduce climate risk to a single rating or score,” said Kamil Kluza, Climate X’s co-founder and chief product officer.

“We’re breaking the mold with technology designed to drive business value by helping our clients answer critical questions about their asset portfolios and investment strategies: where to buy, where to sell, how to build portfolio resistance, reduce insurance premiums and protect asset values.”

The startup boasts technologists and engineers from big-name companies including Amazon Prime, HSBC, Accenture and Mozilla.

It’s being advised by supporters from the financial services and real estate industries, including Robert Wigley, former chair of U.K. Finance and David Carlin, head of risk at the United Nations’ environment program finance initiative.

“Climate X is a game-changer that accurately quantifies and addresses the impact of climate risk,” said Google Ventures's Roni Hiranand. “We're impressed with Kluza and Ahmed's deep expertise in corporate risk management and believe they have the right skill set to create a next-generation climate risk intelligence product. We're excited to support the Climate X team as they work towards a vision of becoming the backbone for all climate risk-related decision-making within financial organizations."