Climate X Partners With 4most to Advance Climate Risk Management for Middle Eastern Banking Sector

Climate risk analytics company Climate X has announced a strategic partnership with specialist analytics consultancy 4most to deliver comprehensive climate risk management solutions for banks across the Middle East. The collaboration will combine Climate X’s industry-leading climate risk analytics platform with 4most’s deep regulatory expertise and established relationships in the region.

The partnership addresses the growing need for financial institutions in the Middle East to understand, quantify, and manage physical climate risks as regulatory frameworks evolve and extreme weather events increasingly impact asset portfolios. Banks in the region are facing mounting pressure to demonstrate climate resilience whilst identifying new business opportunities in the transition to a more sustainable economy.

4most and Climate X will collaborate to enable banks to translate complex climate hazard data into actionable financial insights. The partnership will help institutions meet emerging regulatory requirements whilst developing strategies to protect asset values and identify climate-resilient investment opportunities.

4most brings extensive experience working with major financial institutions across the UAE, having supported numerous banks in meeting Central Bank of the UAE requirements, including Model Management Standards and Credit Risk Management Standards. The consultancy’s deep understanding of regional regulatory landscapes, combined with Climate X’s advanced analytics capabilities, will enable banks to move beyond compliance-driven approaches to develop proactive, data-led climate risk strategies.

Lukky Ahmed, CEO and co-founder of Climate X, commented: “The Middle East represents a critical market for climate risk management as financial institutions across the region grapple with increasing physical risks from extreme heat, flooding, and other climate hazards. Our partnership with 4most will accelerate the adoption of robust climate risk analytics amongst regional banks, helping them transform regulatory requirements into competitive advantages. By combining our cutting-edge climate data with 4most’s proven track record in the region, we’re empowering banks to make more informed decisions about their portfolios whilst building long-term resilience.”

Daniel Mclean, Client Partner at 4most said:  “4most has a proven track record of delivering risk and modelling solutions within the region. Combining this experience with Climate X’s data-driven climate-risk analytics, we bring a powerful toolkit that enables banks to embed climate risk directly into credit policies, lending decisions, and strategic planning. In the face of rising regulatory expectations, this is not just about compliance — it’s about creating a genuine competitive advantage. Together, we can help lenders anticipate risks, unlock new opportunities in sustainable finance, and position themselves as leaders in a rapidly evolving market”.

Daniel Hensel, Client Partner at 4most said:  “There is increasing momentum around ESG integration across the GCC region, as underscored by discussions at the recent Central Bank of UAE Climate Forum. At 4most, we are actively supporting clients in navigating ESG-related challenges, particularly around accessing reliable climate data to inform credit decisioning and meet evolving regulatory expectations. Through our partnership with Climate X, we combine their cutting-edge climate data and analytics with 4most’s deep regulatory expertise to deliver a truly differentiated value proposition. We are excited to bring this collaboration to our clients in the region.”

The collaboration reflects both companies’ commitment to advancing climate resilience in the financial sector. Climate X’s Spectra platform uses artificial intelligence and digital twin technology to model 11 different climate hazards across multiple warming scenarios, translating physical risks into expected annual losses at the individual asset level. 4most’s proven methodology for regulatory compliance and risk management will ensure these insights are effectively implemented within existing banking frameworks.

The partnership also supports the broader ambition to position the Middle East as a global leader in sustainable finance and climate risk management, aligning with regional initiatives to enhance ESG capabilities and regulatory frameworks.