Climate Alpha Aims to Mitigate Climate Risk for Developers and Investors

Climate Alpha was featured in an article by the Commercial Observer outlining how as a proptech startup our goal is to utilize AI to assess regional environmental threats around the world and steer investment towards more resilient regions.

“What we do is use data science to produce risk-adjusted valuations on property assets,” said Parag Khanna, founder and CEO of the Singapore-based Climate Alpha, which covers the United States and Canada, and plans to soon add the United Kingdom, Australia, Japan, Western Europe and, ultimately, the entire globe to its platform. “We want to be able to ascribe what we call a climate price to each asset.”

“We are taking climate change into account in valuations, which are done by a pretty arcane methodology involving cap rates, NOI, occupancy, comparative performance of location, and those kinds of things,” he said. “It’s linear at best, with progression modeling, but there’s certainly very little relative to performance of locations according to different climate models.

“We solve for those weaknesses in the valuation ecosystem by bringing in climate, using machine learning, and bringing together the complex interactions of climate variables with the traditional socioeconomic, demographic, fiscal and other factors.”

To learn more, check out the full article here.

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