Market Insight: Geospatial Data Providers’ Opportunity In The Climate Risk Space

Published 26 June 2023 by Alastair Foyn, Justin Butler & Ryan Skinner,
Climate Change Strategy Climate Risk Digital Tech Net Zero & Climate Risk Physical Climate Risk TCFD Reporting Market Insight

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Executive Summary

The geospatial data industry is poised to play a crucial role in climate risk analysis. The market is predicted to be worth $681 billion by 2025 and $1.14 trillion by 2030. While the industry is highly competitive, few firms have developed comprehensive climate risk offerings. However, the increasing adoption of regulations aligned with the Task Force on Climate-related Financial Disclosures (TCFD), along with financial stress testing, are expected to drive demand for climate risk digital solutions. Financial service and insurance firms are leading the way in adopting geospatial climate data, using these to develop climate-resilient products and to predict the impact of climate events on portfolio values. Pioneering geospatial data providers such as 7 Satya, Descartes Labs, EOLAS Insight, Picterra and PropEco have launched climate risk solutions with innovative applications. To ensure wider industry uptake and overcome a lack of methodological standardization, geospatial firms can align offerings with TCFD recommendations, and translate risks into economic impact.

Table of contents

The geospatial data industry has a key role to play in climate risk analysis
Insurance and financial service industry leaders drive geospatial climate data adoption
Pioneers among geospatial data providers have launched climate risk solutions
Geospatial data providers can overcome climate risk application obstacles

Organisations mentioned

7 Satya, Ambiental, Bouwinvest Real Estate Investors, C2 Group, Cervest, CoreLogic, Descartes Labs, EOLAS (Earth Observation Land Animal Survey) Insight, Esri, EVORA Global, Fathom, GRASS GIS, JBA Risk Management, Jupiter Intelligence, Los Alamos National Laboratory, Moody’s, NN Group, Picterra, Pitney Bowes, PostGIS, PropEco, QGIS, RMS, RoyalHaskoningDHV, Task Force on Climate-related Financial Disclosures (TCFD), Task Force on Nature-related Financial Disclosures (TNFD), US Department of Energy, Verisk

About the authors

Alastair Foyn

Analyst
Alastair is an Analyst in the Verdantix Net Zero & Climate Risk practice. His current research agenda focuses on carbon management software and decarbonization best practices, particularly those relating to Scope 3 and industrial emissions. Prior to joining Verdantix, Alastair worked at Tyler Grange, where he gained experience in consultancy practices and environmental strategy. Alastair holds a First Class BSc in Biological Sciences from Durham University, as well as an MSc in Sustainable Development, with Distinction, from the University of St Andrews.

Justin Butler

Senior Advisor

Justin is an experienced, independent Non-Executive Director (NED) and Board advisor with proven expertise in Business Growth, Technology, ESG, Climate Risk, Marketing Strategy and Business Development. He founded, scaled and recently sold Ambiental, a leading insurance-focused climate risk modelling company, supplying data products and services to financial services companies as part of underwriting operations, TCFD and related disclosures. Justin’s entrepreneurial journey, Ph.D. in numerical modelling and geo-engineering from Cambridge University and his applied technical background in risk modelling have led him to become a recognised thought leader in the field of flood risk and climate change. Justin is a Senior Advisor to Verdantix within our Net Zero and Climate Risk practice.

Ryan Skinner

Research Director, Net Zero & Climate Risk
Ryan is the Research Director for the Verdantix Net Zero & Climate Risk practice. He guides the research team to develop compelling research at the intersection of net zero strategies, carbon management, climate risk and technology. Prior to joining Verdantix, Ryan was a principal analyst at Forrester Research, where he initiated the research into ESG data and analytics offerings. He also has extensive experience of helping software companies with their messaging, positioning, market and technology strategies. Ryan studied at Duke University, the University of Manchester and the University of Oslo, and speaks Norwegian fluently.

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