The Linux Foundation has unveiled its initiative to leverage AI-powered open-source analytics and open data in addressing climate-related risks and opportunities.
Leading this effort are founding members Allianz, Amazon, Microsoft, and S&P Global, supported by a planning team featuring esteemed representatives from the World Wide Fund for Nature (WWF), Ceres, and the Sustainability Accounting Standards Board (SASB).
The LF Climate Finance Foundation (LFCF) aims to unite various stakeholders—including investors, banks, insurers, corporations, governments, NGOs, and academic institutions—on a collaborative platform designed to enhance global climate objectives. Central to its mission, the LFCF will manage the OS-Climate platform, which will incorporate various physical and economic scenarios, a globally accessible Data Commons, and financial models aimed at advancing predictive analytics and investment tools.
Truman Semans, CEO and chair of the planning team at OS-Climate, recently shared insights with Finextra TV about their vision. “At its core, OS-Climate seeks to apply the collaborative, community-driven, open-source model that has proven effective in sectors like technology and life sciences to the ongoing challenges of improving data and analytics for climate-focused investment.”
Semans emphasizes the importance of creating a neutral environment where competitors can collaborate, sharing intellectual property, costs, knowledge, and resources to develop essential technology and data infrastructure. “By fostering collaboration and sharing existing technologies, we can prevent the unnecessary duplication of efforts,” he explains.
This initiative aims to empower asset owners, managers, and banks to effectively manage climate risks and identify companies, infrastructure projects, and technologies aligned with a low-carbon economy. Semans notes the widespread demand for such a platform: “There is a strong call from pension funds, banks, governments, and civil society for accessible corporate climate data and enhanced tools to inform financial decisions, all in support of the Paris Climate Accord.”
In a statement about the launch, Martina Cheung, president of S&P Global Market Intelligence, remarked, “Businesses and investors are becoming increasingly aware of the ramifications of climate change on future company performance. There is a growing need for pension funds, asset managers, and governments to incorporate climate-related data into their decision-making processes.”
She further added, “Now, more than ever, we require extensive disclosures of climate and environmental data from companies, alongside consistent improvements in data and analytical tools to better evaluate climate risks and opportunities.”