Equilibrium and FutureProof announce partnership for pricing climate risk assets
The collaboration combines Equilibrium’s long-standing expertise in sustainable finance with FutureProof’s cutting-edge data analytics, leveraging the strengths of each company to develop focused decision support and assessment tools. on climate and sustainability for a real investment in assets. FutureProof is the only analytics company using artificial intelligence to project how the characteristics of assets – such as the construction materials of a building, or whether the asset of interest is a debt-to-equity instrument – impact climate losses in terms of dollars. FutureProof enables financial institutions to quantify the dollar value of potential climate-related financial losses to physical structures, bondholders and more than 50,000 public and private companies.
FutureProof’s platform is the first to unite financial models calibrated by artificial intelligence with cutting-edge scientific models for the frequency and severity of climate risk, in order to translate physical climate risk into specific monetary values according to scenarios defined. This provides critical data for Equilibrium as they apply their economic sustainability hurdles to underwriting, operational measurement, risk management and asset valuation.
“Equilibrium is one of the first investment managers to incorporate the recommendations of the Climate Related Disclosure Task Force (TCFD) into its specially designed sustainability framework. Equilibrium understands the power to measure, manage and anticipate risk , and quantify opportunities, change them, “said Jay pierrepont, COO of Equilibrium. “FutureProof’s technology helps us assess climate-related risks and opportunities in the assets of our Controlled Environment Food (CEF) and Carbon Transition Infrastructure (CTI) portfolios. This helps us to be proactive in mitigating risk, building resilience, and identifying opportunities – all of which add value to our investors.
FutureProof was founded in 2019 by a team of doctoral students. economists, Ph.D. climatologists and technologists. Some vital statistics on FutureProof:
- A single FutureProof subscription provides unlimited access to its platform through the API, as well as through an easy-to-use web application allowing for automated data uploading, viewing and reporting.
- FutureProof’s global projections cover the six populated continents under multiple climate scenarios from today to 2100.
- Users can assess the reductions in climate-related losses they would achieve through investments in resilience.
- Organizations can sign up under a freemium model to access some of FutureProof’s features for free.
“We are delighted to partner with Equilibrium, a pioneer in the sustainability-focused investment space and a leading company in the conversation about how to operationalize climate-related risks and opportunities,” said declared Alisa valderrama, CEO and co-founder of FutureProof. “FutureProof’s proprietary data analytics platform will enable Equilibrium to quantify and link climate-related risks to asset pricing and performance in a new and more efficient way, for the benefit of its partners and of the planet. “
Equilibrium develops leading sustainable and ESG financing strategies and portfolios active in the market in environmentally controlled foods and carbon transition infrastructures for institutional investors. Equilibrium has offices at Portland, Oregon, San Francisco, California, London, England, and Singapore.
Future proof is a fintech company that bridges the gap between physical climate risks, financial projections, and decision making. Using models informed by climate science, econometrics and AI, FutureProof helps asset managers, insurance companies and banks understand and quantify their climate-related risks. For more information visit futureprooftech.io
For more information, please email Kimberley player ([email protected])
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