Index provider FTSE Russell, and climate risk analytics platform announced a new agreement to explore a new partnership to jointly develop climate-scenario based indices and analytics, aimed at enabling investors to embed climate insights into financial decision making.

Founded in 2014, Planetrics provides advanced modelling of physical and transition climate impacts across a variety of assets, sectors and regions, offering proprietary software to help banks, investors, insurers and corporates quantify and manage climate-related risks and opportunities through customisable scenarios and asset-level insights reflecting real-world policy, technology and market dynamics. The company was acquired earlier this year by sustainability-focused consulting firm SLR.

Thomas Bremner Bligaard, Executive Director at Planetrics, said:

“This collaboration with FTSE Russell reflects where the market needs to go, from acknowledging climate risk to actually pricing it. Our modelling captures a range of plausible futures, including physical shocks and uneven transitions across regions and sectors, then traces how costs, supply chains and competitive positions evolve at a company level. That granularity translates into portfolio signals precise enough to support better allocation decisions and stronger risk management.”

According to the new MoU, under the new collaboration, Planetrics will make its proprietary physical and transition climate risk analytics, models and scenario tools available to FTSE Russell, to support the development of climate-scenario based indices across asset classes. The companies said that they intend to work together on the development of analytical frameworks and data inputs underpinning the proposed indices, with FTSE Russell responsible for governance and commercial distribution, supported by Planetrics’ research expertise, market knowledge and technical depth.

The companies said that they anticipate new indices to be launched later this year.

Stephanie Maier, Global Head of Sustainable at FTSE Russell, said:

“As climate considerations continue to drive the investment landscape, we are delighted to be collaborating with Planetrics as we continue to innovate to the needs of the market. The intended partnership reflects our ongoing commitment to developing transparent, innovative indices that draw on robust research and analytical frameworks to help our clients better invest for and through the low carbon transition.”