Climate Value-At-Risk Market Report 2026

The climate value-at-risk market size has grown exponentially in recent years. It will grow from $1.72 billion in 2025 to $2.08 billion in 2026 at a compound annual growth rate (CAGR) of 21.4%. The growth in the historic period can be attributed to increasing frequency of natural disasters impacting asset valuations, early adoption of insurance catastrophe models, rising awareness of physical asset vulnerability in banking systems, development of basic risk scoring models for infrastructure, growth of global reinsurance risk assessment practices.

The climate value-at-risk market size is expected to see exponential growth in the next few years. It will grow to $4.55 billion by 2030 at a compound annual growth rate (CAGR) of 21.6%. The growth in the forecast period can be attributed to expansion of advanced scenario stress testing frameworks, increasing integration of non-traditional data sources for risk estimation, growing demand for portfolio-level risk quantification, rising use of real asset resilience scoring in lending decisions, increased institutional allocation adjustments based on physical risk exposure. Major trends in the forecast period include increasing use of catastrophe risk modeling for asset valuation, expansion of extreme event financial stress testing in banking portfolios, rising integration of geospatial hazard datasets in investment risk assessment, growing adoption of scenario-based macroeconomic risk simulations for infrastructure assets, increased focus on reinsurance-linked portfolio hedging strategies.

The rising demand for ESG integration and sustainable investment strategies is expected to propel the growth of the climate value-at-risk market going forward. ESG integration and sustainable investment strategies refer to the structured incorporation of environmental, social, and governance factors into investment analysis and portfolio management to achieve long-term financial and sustainability goals. The adoption of ESG and sustainable strategies is increasing due to growing regulatory expectations, heightened stakeholder pressure, and the need to mitigate climate-related financial risks, contributing to broader market adoption. Climate Value-at-Risk platforms support ESG-aligned investment decision-making by integrating climate risk data, carbon pricing implications, and sustainability performance indicators into portfolio assessment. For instance, in December 2025, according to the Sustainable Investment Forum, a US-based nonprofit membership association, 77% reported using ESG integration as their primary sustainable investment approach in 2025. Therefore, the rising demand for ESG integration and sustainable investment strategies is driving the growth of the climate value-at-risk market.

Key companies operating in the climate value-at-risk market are focusing on developing technological advancements, such as multi-vendor climate data aggregation, to improve risk assessment accuracy and support better strategic and regulatory decision-making. Multi-vendor climate data aggregation is the process of integrating climate-related data from multiple providers into a single unified platform to enable consistent, comprehensive, and accurate climate risk analysis. For example, in January 2024, Six Climate, a Switzerland-based financial services and market infrastructure provider, launched a new climate data offering as part of its 2024 ESG product expansion, aiming to become a “one-stop shop” for financial data and analytics. It aggregates climate-specific datasets via a multi-vendor single source from MSCI, Inrate, and CDP, covering over 33,000 companies. It includes historical and forward-looking climate metrics to support risk analysis, regulatory compliance, and portfolio assessment.

In November 2023, Bloomberg LP, a US-based financial data and analytics company, partnered with Riskthinking.AI to launch a new physical climate risk data solution. Through this collaboration, Bloomberg aims to enhance its climate financial analytics capabilities by integrating Riskthinking.AI’s climate modeling technology with Bloomberg’s extensive physical asset database to help investors and financial institutions assess exposure to climate-related physical risks and support climate risk-informed investment decisions. Riskthinking.AI is a Canada-based provider of solutions that support Climate Value-at-Risk (Climate VaR) analysis.

Major companies operating in the climate value-at-risk market are Munich Reinsurance Company, McKinsey & Company Inc., Bloomberg LP, S&P Global Inc., MSCI Inc., South Pole Group AG, Ortec Finance B.V., CubeLogic Limited, Cervest Limited, ZestyAI Inc., Jupiter Intelligence Inc., Clarity AI Inc., Climate X Ltd., ClimateAI Inc., Climate Analytics GmbH, Mitiga Solutions S.L., Entelligent Inc., Equarius Risk Analytics Pty Ltd, ClimateCheck Inc., XDI Systems Pty Ltd, Credibl Pte. Ltd., Climafin SAS.

North America was the largest region in the climate value-at-risk market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the climate value-at-risk market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the climate value-at-risk market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The climate value-at-risk consists of revenues earned by entities by providing services such as scenario analysis and climate stress testing, carbon footprint and emissions exposure analysis, climate transition risk modeling, physical climate risk mapping, and asset-level vulnerability analysis. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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