Financial institutions are integrating climate data into investment, risk and portfolio management processes.
Explore our researchThe Verdantix Climate Financial Data & Analytics module examines vendor capabilities, market trends and emerging technologies across climate data, climate risk analytics, scenario modelling and portfolio intelligence solutions. It explores how financial institutions are quantifying climate-related risks and opportunities across investment, lending and portfolio management activities.
Understand the climate financial data & analytics market
Our research helps clients understand:
Climate risk analytics, modelling and portfolio assessment technologies.
Climate data providers, vendor capabilities and competitive dynamics.
Physical risk, transition risk and nature-related financial risk analytics.
AI, regulations and emerging trends shaping climate finance.
What is climate financial data and analytics?
Climate financial data and analytics (CFD&A) comprises the data, analytics, models and tools used by financial institutions to quantify climate-related risks and opportunities across investment, lending and portfolio management activities.
Climate financial data and analytics
Solutions that provide the data, models and software used by financial institutions to assess climate-related risks and opportunities. These platforms support emissions measurement, physical and transition risk assessment, scenario analysis and climate-related reporting, helping investors, banks and insurers make more informed climate-related financial decisions.
Physical risk data and analytics
Solutions that help organizations assess exposure to climate hazards such as flooding, heat stress, wildfires and hurricanes. These capabilities support asset-level and portfolio-level risk analysis, resilience planning and the quantification of climate-related financial impacts.
Transition risk data and analytics
Solutions that help organizations measure and manage risks arising from the transition to a low-carbon economy. By combining data on emissions, climate policy, carbon pricing, market trends and technological change, these tools help firms assess exposure, compare resilience under different transition scenarios and support climate-informed investment and lending decisions.
Biodiversity and Nature-Related Analytics
Solutions that assess nature-related dependencies, impacts and risks, including exposure to water stress, deforestation and ecosystem degradation. These capabilities support emerging frameworks such as TNFD and help organizations integrate nature-related considerations into investment analysis and portfolio management.
Why organizations are investing in climate financial data and analytics solutions
Verdantix research shows that 63% of firms rate developing decarbonization investment plans with financial and operational teams as a top priority. As climate considerations become increasingly embedded within investment and risk management processes, financial institutions require tools that can quantify exposure, model future scenarios and identify emerging risks and opportunities.
Reduced transition risk
By identifying exposure to stranded assets and evaluating alignment with net zero and decarbonization pathways, CFD&A solutions help institutions understand how climate transition risks may affect asset values, portfolio performance and long-term investment outcomes.
Quantified physical climate risk
Physical risk analytics help institutions assess exposure to hazards such as flooding, heat stress, wildfire and extreme weather events. These capabilities support more accurate risk-adjusted return calculations, portfolio stress testing and resilience planning.
Stronger regulatory and disclosure readiness
CFD&A platforms provide the data, analytics and benchmarking capabilities required to support climate-related disclosures and reporting frameworks, helping institutions improve consistency, transparency and auditability while reducing manual effort.
Integration of nature and biodiversity considerations
As nature-related disclosure requirements gain momentum, organizations are increasingly incorporating biodiversity and ecosystem-related risks into investment analysis. These capabilities help identify emerging risks and opportunities linked to nature-positive investments and evolving reporting expectations.
More informed portfolio allocation decisions
Scenario analysis and portfolio modelling tools enable institutions to assess performance under different climate pathways, evaluate resilience and identify opportunities to rebalance portfolios towards assets that are better positioned for a low-carbon transition.
Market trends & investment insights
Verdantix research highlights four trends shaping the climate financial data and analytics market.
REGULATION
Regulatory pressure is accelerating CFD&A adoption across financial institutions
Climate disclosure requirements are expanding in scope and mandatory reach across major financial markets. Institutions that previously engaged with frameworks like TCFD on a voluntary basis are now facing binding obligations, driving demand for CFD&A solutions that can support auditable, comparable reporting at scale. This is broadening the buyer base beyond large asset managers to include insurers, banks and pension funds at earlier stages of climate risk integration.
PHYSICAL RISK
Physical risk is emerging as a priority alongside transition risk
For much of the past decade, transition risk dominated climate finance discussions. Increasing frequency and severity of climate-related weather events has shifted attention towards physical risk assessment, particularly for real asset portfolios in insurance, infrastructure and real estate. Demand for granular, asset-level physical risk data with credible forward-looking projections is driving investment in geospatial and climate science capabilities among CFD&A providers.
NATURE RISK
Nature and biodiversity risk is becoming a distinct analytical requirement
The development of the TNFD framework has elevated nature-related financial risk from a niche concern to a mainstream disclosure consideration. Financial institutions are beginning to assess supply chain dependencies on ecosystem services alongside their climate risk programmes, creating demand for data and analytics that can quantify exposure to water scarcity, deforestation and biodiversity loss at a portfolio level.
AI & GEOSPATIAL
AI and geospatial capabilities are differentiating CFD&A providers
The ability to process satellite imagery, sensor data and climate-model outputs at asset level is becoming a key source of differentiation within the CFD&A market. Providers with proprietary AI and geospatial capabilities can deliver more granular, frequently updated risk assessments than those relying solely on third-party datasets.
Vendor landscape & market ecosystem
The CFD&A market brings together established financial data providers, climate-native analytics specialists and consulting-led climate risk platforms. Providers differ significantly in their data coverage, modelling methodologies, analytical depth and integration with existing investment and risk management workflows.
The market can be broadly segmented into three groups:
Established climate financial data and analytics providers
Vendors such as Bloomberg, ICE, ISS STOXX, LSEG, Moody's, Morningstar, MSCI and S&P Global embed climate-related data and analytics within broader financial data and investment platforms. These providers typically offer extensive asset coverage and strong integration with existing research, portfolio management and risk workflows.
Specialist climate risk and analytics vendors
Vendors such as Clarity AI and other climate-focused providers offer dedicated climate risk, scenario analysis and portfolio analytics capabilities. These firms often differentiate through methodology transparency, asset-level risk modelling, climate datasets and specialized analytical capabilities.
Verdantix provides practical tools to help sustainability, risk and investment leaders evaluate climate financial data and analytics solutions, assess vendor capabilities, and select tools that align with their reporting, risk modelling and investment decision-making needs.
Free practitioner asset
Buyer’s Guide: Climate Financial Data And Analytics Solutions (2025)
A Verdantix report identifying 22 CFD&A vendors currently available in the market, with detailed profiles of 10 key vendors to support financial institutions in evaluating and selecting solutions.
Verdantix
Buyer’s Guide: CFD&A Solutions 2025
Key Verdantix research
Explore the full portfolio of research via the Verdantix research portal.
Climate financial data & analytics FAQs
CFD&A solutions are used across a wide range of institution types, including asset managers, insurers, banks, pension funds and development finance institutions. The specific capabilities required vary by institution type: asset managers typically prioritize portfolio-level transition risk and scenario analysis, while insurers and infrastructure investors place greater weight on physical risk assessment at asset level.
Physical risk refers to the financial exposure arising from climate-related hazards such as flooding, heat stress and extreme weather events, which can damage assets, disrupt operations and affect valuations. Transition risk refers to financial exposure arising from the shift to a low-carbon economy, including policy changes, technology disruption and shifts in market sentiment that may affect the value of carbon-intensive assets or create opportunities in low-carbon sectors.
CFD&A platforms provide the data inputs, scenario analysis tools and benchmarking capabilities needed to produce disclosures aligned with frameworks such as ISSB, TCFD and emerging regional mandates. The depth of disclosure support varies by vendor, with some offering workflow tools and audit trails specifically designed for regulatory submission.
Nature and biodiversity risk is increasingly treated as a related but distinct analytical domain within climate finance. While climate risk focuses on greenhouse gas emissions and their physical and economic consequences, nature risk addresses dependencies on and impacts to ecosystems, including water availability, soil health and biodiversity. Frameworks such as TNFD are driving financial institutions to begin assessing these risks alongside their climate programmes, and a growing number of CFD&A providers are developing nature-related data and analytics capabilities.
Key considerations include the breadth and quality of underlying data coverage, the transparency and credibility of methodology, the ability to integrate outputs into existing risk and investment workflows, and the depth of support for specific disclosure frameworks. Specialist service providers and climate risk consultancies can support institutions in defining requirements, running vendor evaluations, and building internal capability to interpret and act on CFD&A outputs.
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