Carbon Delta, a data analytics firm that specializes in climate change analysis for institutional investors, recently closed its first CHF 1.7 million investment round, which included Zürcher Kantonalbank (ZKB) and a group of angel investors from the Swiss ICT Investor Club (SICTIC). The award-winning startup has developed the Climate Value-at-Risk system, which has gained traction amongst investment firms. The new funding will be used to accelerate growth throughout Europe.
Carbon Delta was founded in 2015 by Oliver Marchand, Elke Schaper and David Lunsford (from left to right).
Carbon Delta, an award-winning Swiss fintech, 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 renowned Potsdam Institute for Climate Impact Research and ETH Zurich. The startup has been supported by the EU initiative Climate-KIC and won their “Best European climate startup” award in 2016.
Investments of CHF 1.7 million
To help finance rapid growth, Carbon Delta successfully closed its first CHF 1.7 million investment round with ZKB and SICTIC. Oliver Huggenberger, the responsible investment manager at ZKB, states: “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.” Dr. 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 helped the founders be well prepared for this investment round.
Accelerating growth in Europe
Dr. Oliver Marchand, Carbon Delta’s CEO, says: “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.” The firm plans to hire more sales people and to open offices in Potsdam (near Berlin) and Paris to promote their Climate Value-at-Risk system to be used in mainstream asset management. 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.
Innovative climate tools in finance
Additional product development initiatives due to be released during 2018 are:
- automated streamlined report creation for Task Force on Climate-related Financial Disclosures (TCFD) and other regulatory directives,
- a “Climate Value-at-Risk” financial terminal application and,
- scenario analysis will be expanded to include supply chain risks for 22,000 companies.
Together with the renowned Potsdam Institute for Climate Impact Research the firm will also launch an even 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.”
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