When it comes to developing software for climate technology, focusing on carbon accounting seems like a logical starting point. Many successful software companies in this industry are involved in accounting, offsets, removals, or regulatory disclosure. Startups like Persefoni in New York, Plan A in Berlin, Supercritical, and CUR8 have all received significant funding in these areas.
However, one niche that briefly emerged but then faded due to mergers and acquisitions is the assessment of climate risks associated with physical assets. UK startup Climate X is now reentering this space with an $18 million Series A round led by GV (Google Ventures). The startup’s goal is to assist financial organizations in evaluating the impact of climate change on their physical asset portfolios, with plans to expand globally.
Climate X’s platform can assess climate risks for residential and commercial properties, as well as road, rail, and power infrastructure. Their clients include industry leaders like Legal & General, CBRE, and Virgin Money.
Founded by Lukky Ahmed (CEO) and Kamil Kluza (COO), Climate X is following the path of successful startups like Four Twenty Seven and The Climate Service. The climate adaptation market is estimated to be worth $2 trillion, offering a significant opportunity for Climate X.
Realizing the need for scalable climate risk modeling in the financial sector, Ahmed and Kluza have developed a digital representation of the Earth using vast amounts of data points. Their platform allows clients to evaluate climate risks over a 100-year horizon for properties in detail, with a focus on extreme weather events.
Ahmed’s journey from banking to tech entrepreneurship was not easy, but his experience in risk management laid the foundation for Climate X. The startup faced challenges in fundraising but eventually secured the Series A funding with GV’s support.
Chief Sustainability Officer at CBRE, Robert Bernard, highlighted the importance of working with Climate X to address climate change risks. The partnership aims to help clients prepare for the challenges posed by climate change.
