ISS Sustainability Solutions, the sustainable investment business of ISS STOXX, is set to buy Sust Global, a geospatial risk modelling and analytics firm, citing growing appetite for geospatial data among institutional investors.
Founded in 2020, Sust Global draws on a proprietary geospatial AI engine that provides analytics financial institutions can use to understand location-specific risk exposures and quantify financial impact.
Solutions include a visual risk analytics tool, regulatory reporting solutions, data exports, direct API tools, and bespoke solutions. Product users can drill down into individual asset locations and use data for risk management, due diligence, regulatory compliance and engagement.
“Institutional investors’ need for geospatial data and enhanced physical risk analytics is growing rapidly and we are pleased to address that demand through this transaction,” said Till Jung, head of sustainability business at ISS STOXX.
“Sust Global is a highly complementary fit whose platform and AI-powered physical risk models pair well with our proprietary asset level data. Our ability to map them to corporates and investment portfolios will result in highly effective solutions for our institutional clients.”
This year the Universities Superannuation Scheme incorporated physical risks in its scenario analysis for the first time, using location-specific GDP data to inform modelling of hazards and how regions and asset classes may be affected by the impacts of climate change.
Other firms have also recognised the appetite for geospatial analysis. Last year MSCI launched Geospatial Asset Intelligence, a solution developed as part of MSCI’s partnership with Google Cloud.
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