Carbon Delta calculates and analyses the risks and opportunities that climate change poses for investment portfolios. With their newly developed financial metric, called “Climate Value-at-Risk” leading investors, banks, insurance companies, and pension funds can measure and assess climate impacts within portfolios. To carry out complex calculations on over 20,000 listed companies, Carbon Delta cooperates with the Potsdam Institute for Climate Impact Research and ETH Zurich.
To help finance rapid growth, Carbon Delta has raised CHF 1.7 million in its first investment round with ZKB and a group of angel investors from the Swiss ICT Investor Club (SICTIC). Thomas Dübendorfer, president of SICTIC, invested himself as he considers risks due to climate change a highly relevant topic. He also coordinated the communication with the other angel investors and assisted the founders with preparations for the round.
“Carbon Delta’s solution has the potential to raise awareness of climate change and to promote a sustainable economy, which perfectly fits with the start-up portfolio of ZKB”, said Oliver Huggenberger, the responsible investment manager at ZKB. “Through the acquisition of major global players in finance as clients, the Carbon Delta team has proven the demand for climate-friendly practices within the investment community. We are happy to support Carbon Delta and its efforts towards a low carbon economy”, he adds.
“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”, said Oliver Marchand, CEO of Carbon Delta.
The startup will also hire more sales-persons as well as open offices in Potsdam, Germany and Paris to promote their Climate Value-at-Risk system. Considering climate risk for investment professionals is important to protect assets, optimize performance and reach sustainability goals. The Climate Value-at-Risk framework developed by Carbon Delta is the first forward-looking metric that focuses on estimating the impact of climate change on future valuations of companies and funds.
Together with the Potsdam Institute for Climate Impact Research the firm will launch a more granular version of their extreme weather impact analysis towards the end of the year. Huggenberger from ZKB said, “Through the acquisition of major global players in finance as clients, the Carbon Delta team has proven the demand for climate-friendly practices within the investment community. We are happy to support Carbon Delta and its efforts towards a low carbon economy.”