Climate Alpha Launches AI-Powered Platform to Steer Investment Toward more Resilient Regions

Climate Alpha announces the launch of its data-driven product suite, offering property developers, asset managers, and insurers risk-adjusted valuations, resilience scores, and site selection rankings for locations all across America and soon globally.

Climate Alpha is a software platform featuring three proprietary tools – Climate Price, Resilience Index and Alpha Finder – running on a patent-pending scenario forecaster. Climate Alpha’s model covers 40,000 US ZIP codes, with bespoke algorithms for each property type: residential; commercial; industrial, and agricultural. It has already generated risk-adjusted valuations for more than 200,000 buildings.

Climate Alpha gives its clients an edge in the climate adaptation race by both identifying risks and uncovering opportunities. Unlike traditional real estate valuation products using simple financial models that ignore climate variables, Climate Alpha employs machine-learning techniques to integrate hundreds of socioeconomic and market variables as well as the latest climate models. And unlike climate risk firms that only suggest long-term value-at-risk, Climate Alpha forecasts real estate values for every year out to 2040 under multiple climate scenarios.

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Its API function allows seamless and instant portfolio modeling, delivering Climate Price assessments and Resilience Index scores for an unlimited number of properties – with each customer receiving a secure microsite to rank asset performance and generate reports for ESG-related reporting. Simultaneously, Alpha Finder offers confident fund construction by screening dozens of datasets to target locations correlating to clients’ investment mandates and time horizons.

Dr. Parag Khanna, founder and CEO of Climate Alpha, says, “Assessing climate risk has become a commodity. We take adaptation to the next level by locating and quantifying opportunities behind which investors and governments can deploy trillions of dollars. As millions of homeowners and businesses are recognizing, relocation is the best adaptation.”

Together with fintech pioneer Atlas Capital, Climate Alpha has built the world’s first Sustainable REIT Index. “The backbone of Atlas Capital’s novel systematic trading strategy is a Sustainable REIT Index which is powered by Climate Alpha’s unique ability to blend a vast array of market drivers and climate variables to produce actionable valuations,” says Atlas Capital founder and CEO Reza Bundy.

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“It is vital that mayors and urban leaders are focused on investing more effectively in climate adaptation. Climate Alpha is the first sustainability themed resource on Mastercard City Insights, and its Resilience Index is an important policy decision-making resource,” adds Alby Bocanegra of Mastercard.

“Property markets are lagging far behind the complexity of the real world,” says Climate Alpha chairman and former president of Lennar International, Chris Marlin. “Climate Alpha’s mission is to get ahead of that complexity and provide a roadmap for society to reorient around resilient locations.”

Steve Weikal, Industry Chair of the Real Estate Technology Initiative at the MIT Center for Real Estate and a Climate Alpha board member, adds, “We all read the articles about how Boise, Denver, and Raleigh and other non-gateway cities are booming. But what will be the thriving Zoom towns of 2025, 2030 and beyond?”

Kathy Baughman McLeod, Climate Alpha board member and climate risk and resilience veteran, notes, “Climate tech is evolving at an astounding pace. Climate Alpha’s high-frequency data feeds, construction of new indices around Covid, infrastructure, immigration and other themes, and global expansion of coverage have shown that this is the platform the market needs now.”

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