Published: August 7, 2018
As climate change analysis grows in importance, the data analytics startup has secured a CHF 1.7 million investment and appears well positioned for success.
In June, the Swiss climate startup Carbon Delta closed its first CHF 1.7 million (€1.46 million) investment round, with a view to expanding its presence across Europe. The company, a data analytics firm specialising in climate change analysis for institutional investors, plans to grow its sales team and open new offices in Potsdam and Paris.
“The funds raised will be invested to help accelerate growth in Europe, as our data helps to manage assets more sustainably and report climate change impacts to financial industry regulators,” Dr. Oliver Marchand, Carbon Delta’s CEO, tells EMEA Finance.
Marchand founded Carbon Delta in 2015, after noting the ways that climate change was affecting the economic markets. The company subsequently developed a system called Climate Value-At-Risk, which enables investors to measure and assess climate impacts within their portfolios. Ultimately, it wants to make this tool the industry standard, ensuring that companies factor climate change into their investment decisions by default.
The need for such a tool has been especially clear since the ratification of the Paris Agreement. Increasingly, the G20 is demanding that investment professionals consider their climate risk, while the Task Force on Climate-related Financial Disclosures (TCFD) has laid out a set of relevant recommendations.
In essence, companies following the TCFD recommendations must identify and disclose the ways climate change could affect their business. This in turn makes it easier to price their climate-related risks and opportunities, helping drive capital towards sustainable investments.