Zurich economic area brings sustainability to financial sector

Climate change could cost investors billions. But with insufficient data currently available, it is difficult to forecast potential losses. Zurich startup Carbon Delta has the solution. With plans to collect and process data for portfolio managers, Oliver Marchand’s concept is going international.

Your startup describes itself as an Environmental Fintech – a digital company in the financial sector that focuses on environmental issues. Do you think there is a new trend emerging here?

Oliver Marchand: Environmental FinTechs are still uncommon. But I think there is great potential in the intersection between the environmental, financial and digital sectors – especially in Zurich, the home of financial and ICT skills, and where sustainable financial service providers had the chance to really succeed.  

What is your Climate Value-at-Risk assessment model?

It assesses the 35,000 biggest companies in the world, so investors can see how well equipped they are for climate change. We have collected data related to their economic activities and are analyzing it with respect to current and planned climate legislation in the different countries. These figures are also considered in conjunction with data from climate impact research from the last three decades, so we can assess which companies will be affected by CO2 prices, extreme weather or cleantech innovations. At the same time, we analyze patents for more than 400 technology groups concerned with emissions reduction to see who has a competitive advantage.       

Are financial service companies aware of the risks posed by climate change?

We get a lot of requests – including from the biggest financial service providers in the world. More and more of them are interested in assessing portfolios for climate risks. And since we received a mandate from the United Nations in partnership with 18 big asset managers, interest has grown even more. 

What were the advantages for you of setting up in the Zurich economic area?

Firstly, Zurich is attractive and has an extremely high standard of living for a city. Another advantage for a financial service provider is of course the proximity to big banks. And finally, the universities: most of our employees have a connection to the ETH or the University of Zurich. The ETH is one of the main reasons we founded our company here. But other networks are important too, including startup networks and environmental NGOs.

What role does Zurich play as an IT hotspot?

We see our software as big data application, which requires IT know-how and experience. In theory, you could build something similar in a mountain hut, but in reality, active exchange is terrifically helpful. Zurich is ideal for getting to know and regularly spending time with the people with the right skills.   

About Oliver Marchand:

Oliver Marchand is the founder and CEO of the Zurich-headquartered startup Carbon Delta. Since the summer, the company has been working with the UN Finance Initiative to develop guidelines for the climate-related financial disclosures project. Previously, it raised 1.7 million francs in a financing round involving the Zürcher Kantonalbank (ZKB) and Business Angels from the Swiss ICT Investor Club (SICTIC). Before founding Carbon Delta, Marchand was member of the board and head of IT at a Zurich asset management company. He gained his PhD in computer science at the ETH and has researched and worked at a range of meteorological services.