ClimateAi > Case Studies > Global Investment Manager Optimizes Portfolio with ClimateLens

Global Investment Manager Optimizes Portfolio with ClimateLens

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Technology Category
  • Cybersecurity & Privacy - Identity & Authentication Management
  • Platform as a Service (PaaS) - Application Development Platforms
Applicable Industries
  • Agriculture
  • Equipment & Machinery
Use Cases
  • Agriculture Disease & Pest Management
About The Customer
The customer is one of the largest investment managers in the world, with about $9.7 billion of assets under management. The company's portfolio is primarily land-focused, with a significant portion dedicated to permanent crops such as pistachios, almonds, and wine grapes. These crops have long life cycles, necessitating long-term planning. The company manages 3 million acres across 600 properties in 10 countries. The team needed a reliable platform to assess climate and water risk across its portfolio and to conduct a portfolio-wide analysis. They also sought to understand how climate change could shape both risks and emerging opportunities for their global land holdings and potential new investments.
The Challenge
A leading global investment manager, with $9.7 billion of assets under management and 3 million acres across 600 properties in 10 countries, faced the challenge of assessing climate and water risk across its land-focused portfolio. The portfolio primarily consisted of permanent crops like pistachios, almonds, and wine grapes, which have long life cycles and require extensive planning. The team needed a reliable platform that could provide detailed insights into properties and potential threats to crops, as well as conduct a portfolio-wide analysis. The company also sought to understand how climate change would shape risks and emerging opportunities across over 2 million acres of land holdings globally and beyond, to new potential investments.
The Solution
The company partnered with ClimateAi and utilized its ClimateLens-Adapt tool to evaluate the climate conditions in their locations and determine their suitability for the crops growing in them over the next few decades. This tool provided the company with data to inform its decisions on capital expenditures, which was critical in its strategic planning. The company also used ClimateLens to assess potential investment opportunities and make decisions on future investments. The platform identified emerging regions for crop production to optimize its investment strategy. It became a key part of the company's risk assessment and due diligence processes, effectively removing the risk in long-term investments.
Operational Impact
  • The use of ClimateAi's ClimateLens-Adapt tool has significantly improved the company's strategic planning and risk assessment processes. It has enabled the company to make informed decisions on capital expenditures and assess potential investment opportunities. The tool has also helped the company identify emerging regions for crop production, optimizing its investment strategy. The company's engagement with ClimateAi was featured in the Wall Street Journal, generating new marketing opportunities. Furthermore, the platform has built confidence in the company's long-term investment strategy by identifying 'tipping points' with tangible information about risks and the timing around them.
Quantitative Benefit
  • The company saw a $6.3M increase in trading profits by adjusting its contract strategy with ClimateAi’s insights.
  • The company calculated a 17x ROI from ClimateAi’s technology, as it was able to more quickly and cost-effectively conduct due diligence and identify new regions for growth opportunities in renewables and agriculture lending.
  • ClimateAi reduced the costs of trials, lowered production losses (by finding more suitable locations more quickly), and enabled higher margins by finding locations that are more efficient for productions.

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