Collaboration employs fintech to provide unparalleled insight into real-asset, sustainability-linked investment
FutureProof, a financial technology firm that enables companies to understand, quantify, and prepare for the financial impacts of climate change announced its partnership with Equilibrium Capital Group, a leading global sustainability-driven asset management firm. Together, Equilibrium and FutureProof will develop and pilot an innovative real asset climate-related risk analysis toolkit that reflects both organizations’ commitment to innovative sustainability reporting and to developing tools more closely linking climate-related risk to asset valuation.
The collaboration combines Equilibrium’s long-standing expertise in sustainable finance with FutureProof’s cutting-edge data analysis, leveraging each company’s strengths to develop climate and sustainability centered decision support and valuation tools to real asset investment. FutureProof is the only analytics firm using artificial intelligence to project how asset characteristics — such as a building’s construction materials, or whether the asset of interest is a debt instrument vs. equity — impact climate losses in dollar terms. FutureProof enables financial institutions to quantify the dollar value of potential climate-linked financial losses to physical structures, to bondholders, and to over 50,000 public and private companies.
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FutureProof’s platform is the first to unite artificial intelligence-calibrated financial models with leading scientific models for the frequency and severity of climate risk, to translate physical climate risk into specific monetary values under defined scenarios. That is providing Equilibrium critical data as they apply their sustainability economics hurdles across underwriting, operational measurement, risk management, and asset valuation.
“Equilibrium is one of the first investment managers to incorporate the Task Force for Climate-Related Disclosures (TCFD) recommendations into its purpose-built Sustainability Framework. Equilibrium understands the power of measuring, managing, and anticipating risks, and quantifying opportunities, in climate change,” said Jay Pierrepont, Equilibrium’s COO. “FutureProof’s technology helps us price climate-related risk and opportunity in assets across our Controlled Environment Food (CEF) and Carbon Transition Infrastructure (CTI) portfolios. That helps us to be proactive in mitigating risks, building resiliency, and identifying opportunities — all of which adds value to our investors.”
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FutureProof was founded in 2019 by a team of Ph.D. economists, Ph.D. climate scientists, and technologists. Some vital statistics on FutureProof:
- A single FutureProof subscription offers unlimited access to its platform via API, as well as through an easy-to-use web app allowing data downloads, visualization, and automated reports.
- FutureProof’s global projections cover all six populated continents under multiple climate scenarios from the present to 2100.
- Users can assess the reductions in climate-linked losses they would achieve through investments in resiliency.
- Organizations can sign up under a freemium model to gain access to some of FutureProof’s functionality free of charge.
“We are thrilled to partner with Equilibrium, a trailblazer in the sustainability-focused investment space and one of the foremost firms in the conversation on how to operationalize climate-related risks and opportunities,” said Alisa Valderrama, CEO and co-founder of FutureProof. “FutureProof’s proprietary data analytics platform will allow Equilibrium to quantify and link climate-related risks to asset pricing and performance in a new and more effective way, to the benefit of its partners and the planet.”
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