MSCI has acquired First Street, a provider of physics-based climate risk data and analytics for every property in the world.
These additional capabilities can help institutions meet rising regulatory and reporting requirements while supporting physical risk management and adaptation and resilience planning, according to the release. First Street provides multi-hazard models that incorporate climate signals and are validated against observed events to assess current and future physical risk exposure, asset damage and business interruption.
As extreme weather and geopolitical disruption are making asset location a critical factor in evaluating investment risk and opportunity, the ability of banks, insurance companies, asset managers, asset owners and companies to analyze and act upon location-based risks could be a key determinant of future success. This trend is reflected in major European central banks’ use of MSCI data to enable them to better identify climate risks
