Jupiter Intel signs strategic partnership with Boston Consulting Group

Jupiter Intelligence, one of the largest independent vendors of climate risk information, on Tuesday announced a new strategic partnership with Boston Consulting Group to help its corporate ESG practice and clients, the company first told Reuters. Axios.

Why is this important: Jupiter, which has offices in Silicon Valley, Boulder, Colorado and New York, is pursuing an aggressive partnering strategy to stand out in a crowded field.

The big picture: Helping businesses and governments plan for escalating climate change risks is crucial to helping people become more resilient to more extreme weather, rising sea levels and other hazards. . This can minimize economic losses.

  • According to Mike Lyons, Managing Director and Partner at BCG, Jupiter’s global climate analytics platform will be integrated with BCG’s systems to provide customized reports to clients.
  • Jupiter has sought to be a leader in analyzing physical risks, including the danger that climate change poses to corporate and government assets, from factories to airports.

The big picture: One thing that makes Jupiter an attractive partner for consulting firms, Lyons said, is that it’s a pure dataset and they have no incentive to go into the business alone. advice.

  • “You kind of buy units of data from them, and they just give it to you. And then you can do whatever you want with it,” Lyons said.
  • “And in fact, they even coach you and teach you how to extract data from their systems and use it and how to interpret the results and all that,” he said.
  • This contrasts Jupiter with other players in the climate intelligence space that have recently been purchased by companies such as McKinsey, Willis, S&P and Moody’s. These include climate risk modeling firm RMS, The Climate Service, 427 and others that started independently like Jupiter, some of which have pursued bespoke climate advisory practices.
  • Jupiter CEO and co-founder Rich Sorkin told Axios that he has long envisioned at least 50% of his company’s customers going through strategic partnerships like the new one with BCG.
  • He said partnerships are a way to connect Jupiter’s products to other companies and also to get new business. “We earn about 70% of what we see and we see a lot more with these partnerships,” Sorkin said.

The context: Joe Monaghan, CEO of public sector partnership at Aon, another Jupiter partner, told Axios he’s seen a “frenzy” from companies and institutions as they try to build capacity to assess climate risks to their businesses or public assets. Many achieve this through acquisitions, Monaghan said.

  • “They want to get something because they understand they don’t have what they need. Now getting something is better than having nothing and then equips them to be more thoughtful going forward,” Monaghan said in an interview.
  • Aon, however, has its own disaster model and partners with academic institutions. So he sees integrating Jupiter data into what he calls the company’s “ecosystem” as a natural fit.
  • “What we’re looking at now is finding the partners that we can connect to create complements to what we have, so that we can immediately have a buying impact,” Monaghan said.

Yes, but: Assessing the accuracy of climate risk analyses, whether from Jupiter or competing companies, can be difficult because they involve projections out to 2100.

  • Jupiter, however, seeks to give away much of its data for free to underfunded countries that lack the public climate science infrastructure that the West has. This initiative is known as the “Jupiter Promise”. The company is also negotiating with the US government to also share the data publicly.

And after: Sorkin said Jupiter may be able to pursue acquisitions as early as this year and mentioned Australian climate intelligence company XDI Systems as a potential target.

Lance B. Holton