Research and data firm MSCI has acquired climate data provider First Street to enhance its global physical climate risk capabilities, adding physics-based analytics across two billion properties worldwide.
The deal involves an initial $120m (€106m) payment, with the potential for additional performance-based payments during the first two years following closing of the transaction.
MSCI said it will integrate First Street’s data and tools into its climate and geospatial solutions to enable quantified assessments of financially relevant physical climate risk at any geographic coordinate and across properties worldwide.
“These additional capabilities can help institutions meet rising regulatory and reporting requirements while supporting physical risk management and adaptation and resilience planning.”
Richard Mattison, head of sustainability and climate at MSCI, said: “The financial consequences of where assets are located have come into sharp focus due to the recent geopolitical turmoil, supply-chain disruption and the growing impact of climate hazards. In response, investors, lenders and insurers are increasingly looking for more in-depth and actionable analysis of the physical risk held in the footprint of a company’s operations and investments.
“The integration of First Street data into MSCI’s existing geospatial capabilities will enable clients to be better informed about their changing risk exposures and translate that directly into financial decision-making.”
Matthew Eby, founder and CEO at First Street, said: “First Street was built on the simple conviction that every financial decision should account for a changing climate. We built the climate risk financial modeling category to turn that conviction into reality.
“Joining MSCI puts our property-level science in front of the world’s leading investors, lenders and insurers and turns climate risk from a disclosure exercise into a daily input for how capital is priced and allocated.”
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