Institutional Investors

For institutional investors managing climate risk is crucial to protecting portfolio value. Extreme and volatile weather conditions threaten business performance through mechanisms such as facility damage, productivity loss, and macroeconomic shifts, ultimately affecting cash flow stability and financial valuation. Consequently, overlooking climate risk information may lead to asset mispricing, lower returns, and compromised fiduciary responsibility.

In this environment, investors should account for climate factors at every stage of the investment lifecycle. This is particularly the case for investors focused on asset classes involving tangible capital assets and long-term investment horizons, such as real estate, infrastructure, and private equity.

Strategy Stage. Investment themes and target allocations should reflect potential climate- driven structural shifts at the sector and region levels.

Investment Stage. Market scanning and due diligence should incorporate climate scenarios into forward-looking cash flow and operational assessments.

Post-Acquisition Stage. Ongoing valuations should account for potential climate impacts. Investors with active engagement mandates should also support management in building climate resilience and capitalizing on climate opportunities.

Exit Stage. Exit strategies should consider climate-related market and liquidity risks that could impact the asset sale.

VELO® Capabilities

VELO equips institutional investors with the essential climate risk capabilities they need.

The platform provides a comprehensive, global dataset of material physical assets worldwide, allowing users to precisely map the operational locations of markets, sectors, and investable entities. This data is seamlessly aligned with forward-looking climate risk metrics and financial impact analytics, delivering a powerful foundation for embedding climate considerations into financial modelling. Private market participants can further enrich this dataset by uploading proprietary information on real estate, infrastructure, private companies, and other critical assets, ensuring a complete analytical framework.

VELO’s extensive physical asset data empowers institutional investors to move beyond isolated reviews of internal portfolios and perform robust benchmarking and peer analysis, enabling users to contextualize climate risk, evaluate relative performance, and uncover strategic opportunities.

Additionally, the omni-channel delivery offers user flexibility for leveraging its features. Whether conducting quick company research in the VELO App, integrating VELO Data into custom analytical workflows, or generating automated insights through VELO Reports, the platform adapts to the diverse and dynamic requirements of institutional investors.

VELO® Use Cases

VELO offers a wide range of solutions tailored for institutional investors.

Thematic Research. Assess potential impacts of climate risks on megatrends, sectors, and regions to refine portfolio strategy decision and enhance investment sourcing.

Cash Flow Modelling. Integrate climate financial impact analytics into cash flow models to account for scenarios of extreme weather events and chronic climate changes, supporting more accurate valuations and informed decision-making.

Portfolio Risk Assessment. Monitor climate risks at both the portfolio and entity levels, conducting detailed reviews of material risks to ensure alignment with acceptable levels of investment performance.

Value Creation. Identify opportunities within the portfolio and at the entity level to support value creation by enhancing resilience, optimizing operations, and capitalizing on climate- related opportunities that align with long-term investment objectives.

Thought Leadership. Develop market insights on climate resilience and sustainable investment practices to build eminence and attract additional investment.

Illustrative Examples

Here are some examples of how VELO delivers actionable insights to meet the key requirements of institutional investors across specific industry segments.

Asset Manager. An asset manager uses VELO to assess and rate the climate risks of over 25,000 equities within its investible universe that is made available to portfolio managers across the enterprise.

Asset Owner. A pension fund uses VELO to assess cost-benefit analyses of upgrades aimed at enhancing the resilience of a major highway within its infrastructure portfolio, enabling productive negotiations with local governments to secure mutually beneficial terms for adaptation investments.

Private Equity. A private equity firm uses VELO to integrate climate risk into cash flow and valuation analyses during the due diligence process and generate clear insights to report in the Investment Committee Memorandum.

Hedge Fund. A hedge fund uses VELO to understand the locations of physical assets owned by public companies, enabling it to navigate the impacts of extreme weather events that could otherwise remain unknown without insights into a company’s operational footprint.

Real Estate Investment Trust (REIT). A REIT uses VELO® to analyze climate risks across a large-scale portfolio, uncovering opportunities to drive enhanced returns through active management strategies and scaled adaptation investments.