The past two years have seen some of the most damaging weather events yet around the globe. Europe and India suffered from deadly heatwaves, hurricanes have caused billions of dollars’ worth of damage in the US, and devastating floods in Pakistan left one-third of the country underwater.
According to insurance provider Swiss Re, if left unchecked, climate change-related risks are expected to cost the global economy up to $23 trillion by 2050. Countries have already taken action to improve reporting on these risks, with the UK leading the way by introducing new mandatory climate-related financial disclosure requirements for companies and financial institutions.
But until now, climate-related data tools have been limited and have yet to meet regulatory expectations. Data quality is also a challenge, with fragmented, disparate data sets affecting progress. Climate X wants to change that.
Climate X is a London-based climate risk analytics provider that helps organisations manage risk by quantifying the probability and severity of weather events. Using Spectra, its multi-award-winning climate risk intelligence platform, organisations can access and integrate granular climate-related risk data into their business strategy and meet regulatory compliance.
Lukky Ahmed and Kamil Kluza founded Climate X after struggling to find quality and consistent data to assess how climate change would impact the world's financial stability. After encountering fellow enthusiasts seeking a solution, they decided to create a conduit between the world of climate sciences and the global financial system to provide organisations with data analytics they could understand and trust.
Spectra can be used to project the impact climate change will have on properties, assets or infrastructure up to 80 years in the future, helping organisations make informed decisions around pricing and investments to mitigate risk.
After a pre-seed funding round in 2021, in 2022 Climate X sought to acquire seed funding and experienced investors to help scale the business to meet rapid customer demand. And Taylor Wessing was on hand to help.
We advised Climate X on its £4.1 million seed funding round. CommerzVentures and A/O PropTech led the oversubscribed round, joined by Deloitte LLP, Voyagers Climate-Tech Fund, Blue Impact Ventures, and a selection of angel investors.
As one of the most sought-after and reputable providers of physical risk data, Climate X will use the new funding to service growing customer demand and scale Spectra, helping customers worldwide make multigenerational climate-informed decisions.
We're proud to help Climate X improve resilience and build a more sustainable future.
"Climate X is leading the way in its use of technology to assess climate change and the impact it has on governments and businesses worldwide. We are proud to work with the most innovative companies across different sectors and we look forward to continuing our support of Climate X and its extraordinary and diverse team. I am excited to see what they achieve in their next phase."
Ronald Graham, Taylor Wessing Partner
"We would like to thank the Taylor Wessing team for their fantastic support throughout this process. Their commercially focused and innovative guidance was crucial in achieving this result."
Lukky Ahmed | Climate X Co-founder and CEO