Big banks say investors are worried about climate-related disasters

While the incoming presidential administration seems rather unconcerned about the climate crisis, investors are paying close attention to weather forecasting software to insulate physical assets from weather-related damage, two recent reports showed.

JPMorgan’s Sector Spotlight on Climate Technology report noted that extreme weather events have become “an increasing concern for some business leaders and investors.” As a result, the report says that companies may use software—and hardware—to “measure, track, and adapt to the changing environment.”

Kelly Belcher, JPMorgan Commercial Banking’s head of climate tech, told Tech Brew that investor concern is directing funds into weather monitoring technology, “including specialized detection softwares and AI-enabled weather forecasting.”

“Investors are taking notice of how these innovations can help organizations assess risk, prepare for disruptions in operations, and protect our communities,” Belcher said.

Meanwhile, a recent report from Citi Wealth, part of Citigroup, took a more direct approach, noting that if investors aren’t worried about climate-related disasters, they should be.

“Humanity needs to prepare and adapt for consequences such as heatwaves, droughts, rising sea levels, and storms,” the report said. “Developing more resilient infrastructure such as roads, bridges, and seawalls is vital. So too is better irrigation, desalination, and dealing with stormwater.”

Citi Wealth noted that the climate crisis is a business risk, especially when government financing and preparedness can only do so much.

“Excessive emissions and insufficient readiness for their consequences are the result of a long-term failure to plan, coordinate, and invest collectively,” the report states. “If humanity is to turn the tide in the climate crisis, this needs to change.”