S&P Global has acquired The Climate Service in a deal that will enable the index provider to offer its clients more “robust and comprehensive” climate data, models and analytics.
The acquisition of the Durham, North Carolina-based company by S&P Global will add capabilities to its portfolio of ESG insights and solutions for its customers.
The Climate Service, which was founded in 2017, has developed the Climanomics platform, which is a tool that quantifies climate risk.
The platform models physical risk, including extreme temperatures, drought, wildfire, coastal flooding, cyclone, and water stress, and also provides clients with intelligence regarding transition risks, such as changing legal, regulatory, and market conditions.
The tool’s outputs are aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
It follows the launch in April 2021 of S&P Global Sustainable1, which S&P Global calls its “single source of essential sustainability intelligence”.
Dr Richard Mattison, president of S&P Global Sustainable1, said: “We are delighted to introduce the best-in-class offering of The Climate Service to S&P Global's ESG solutions, bringing an additional layer of critical insight to our leading suite of climate analytics.
“Our comprehensive coverage across global markets, combined with in-depth ESG intelligence provides financial institutions, corporations and governments with the clarity and confidence to make decisions with conviction."
The terms of the deal were not disclosed.
James McMahon, CEO of The Climate Service, added: “We are passionate about providing the market with the essential information it needs to make smart decisions in the face of climate change.
“Together with S&P Global, we will take our climate risk capabilities to the next level and be able to deliver insights at scale that the world urgently needs.”
In May 2021, non-profit think tank Planet Tracker published research which showed that the world’s largest index providers were being challenged by competitors and their clients, and should prepare for “disruption” driven by the rising demand for sustainable investment.