ESG Today writes that UK-based Climate X provides solutions that help financial institutions evaluate the impact of climate risk across their portfolios. Using AI and a digital twin of companies, Climate X's solution is able to provide insights on 16 different climate hazards, such as heatwaves and floodings across eight warning scenarios spanning over a century.

These risks are then translated into expected annual losses to determine the return of investment for climate adaptation solutions. Company officials said that the 18 million euros capital will be used for the company's expansion in Europe, as well as North America and the Asia-Pacific regions.

Lukky Ahmed, CEO at Climate X, said that "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 AUM. Assessing the impact of physical climate risk on asset valuations and business operations is now a necessity, not a nice-to-have."

The 18 million euros round was led by Google Ventures and saw participation from Pale blue dot and CommerzVentures, among others.

Roni Hiranand, Principal at Google Ventures, added that "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.”