🧭 HSBC and Google Cloud propel climate tech + AI’s role in decarbonization

Hey there! 👋

Last week, we highlighted key updates in the world of climate finance and AI innovation, including HSBC’s new financing initiative with Google Cloud, which is aimed at propelling the growth of climate tech startups. We also explored how AI-driven solutions like Adaptive Insurance’s climate risk platform are transforming the way businesses manage climate-related risks.

At the BIG Risk Navigator, we keep you informed on the latest developments in sustainability, climate finance, and cutting-edge tech innovations. Our goal is to provide decision-makers with the insights they need to stay ahead of the curve in building resilient, forward-thinking businesses.

But first, community updates!

We’re excited to announce the wrap-up of the Emerald Summit, which brought together climate tech innovators and executive women leading the charge in sustainable business. Stay tuned for key takeaways and insights from the summit that will help you leverage climate tech and drive sustainable growth within your business.

Now let’s get into the news.

• HSBC and Google Cloud amplify support for climate tech with $1bn financing initiative: The initiative offers tailored financial products and services in the U.S. and UK, designed to propel the growth of innovative startups.

• Marriott Hotels UK implements Winnow AI to cut food waste by 50% by 2025: Marriott Hotels has achieved a 25% reduction in food waste across dozens of European locations after implementing AI monitoring systems.

• Morgan Stanley’s 1GT climate private equity fund closes at $750 million, targeting gigaton CO₂ reduction: The growth-oriented fund invests in companies seeking to mitigate climate change.

• AI-Powered climate risk platform launched by Adaptive Insurance: Adaptive Insurance has unveiled a ground-breaking parametric insurance platform powered by AI to transform the way companies manage climate-related risks.

• Submer secures $55.5M to tackle AI factories and data centers sustainability: The funds will be used to enter new markets and cater to the increasing need for energy-efficient data centers driven by AI applications.

🎯 HSBC and Google Cloud amplify support for climate tech with $1bn financing initiative

✅ Key Insights

• HSBC partners with Google Cloud to enhance support for climate tech startups, offering specialized financing and banking services.

• The collaboration includes $1bn earmarked for early-stage climate tech ventures, with significant funds already deployed.

• HSBC aims to connect startups with crucial resources and network opportunities to accelerate their journey toward net zero emissions.

HSBC has deepened its collaboration with Google Cloud, launching new initiatives to support the burgeoning climate tech sector. This partnership, particularly through the Google Cloud Ready – Sustainability (GCRS) program, offers tailored financial products and services in the U.S. and UK, designed to propel the growth of innovative startups.

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🎯 Marriott Hotels UK implements Winnow AI to cut food waste by 50% by 2025

✅ Key Insights

• Marriott Hotels UK installs Winnow AI technology in 53 hotels to monitor and reduce food waste.

• Aiming for a 50% reduction in food waste by 2025, following a 25% decrease in early 2024.

• Sustainability initiatives include menu adjustments, responsible dining awareness, and surplus ingredient repurposing.

Marriott Hotels UK is taking a significant step in sustainability by deploying Winnow AI technology across 53 hotels in the UK, Ireland, and Nordics. This innovative system aims to monitor and minimize food waste effectively.

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🎯 Morgan Stanley’s 1GT climate private equity fund closes at $750 million, targeting gigaton CO₂ reduction

✅ Key Insights

• MSIM concludes its 1GT climate private equity fund at $750 million, focusing on reducing global carbon emissions.

• 1GT aims to prevent or remove one gigaton of CO₂ emissions by 2050, aligning financial incentives with climate goals.

• Fund invests in private firms across mobility, power, and sustainable food sectors, leveraging Morgan Stanley’s global resources for growth and ESG enhancement.

Morgan Stanley Investment Management (MSIM) has completed the final closing of the 1GT climate private equity fund (1GT) at $750 million of equity capital commitments. 1GT targets growth-oriented investments in companies in North America and Europe aiming to collectively avoid or remove one gigaton of CO₂e emissions from the Earth’s atmosphere from the date of investment through 2050.

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🎯 AI-Powered climate risk platform launched by Adaptive Insurance

✅ Key Insights

• The company’s flagship product, GridProtect, is designed to provide immediate financial relief to businesses affected by power outages.

• Power outages, which currently result in annual losses of $150 billion across the United States.

• Power outages pose a significant challenge for approximately 15 million U.S. businesses each month.

According to the Electric Power Research Institute (EPRI), the costs associated with a power outage can vary dramatically, ranging from $2,108 to over $8,000, depending on the outage duration. However, Adaptive Insurance emphasizes that investing in resilience measures can generate considerable savings, with every dollar spent yielding $13 in reduced clean-up and economic costs.

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🎯 Submer secures $55.5M to tackle AI factories and data centers sustainability

✅ Key Insights

• Submer has raised $55.5M in a growth round to accelerate the global adoption of its sustainable immersion cooling technology.

• This technology reduces energy and water consumption in the data centers driven by AI.

• It will use the funds to expand into key markets, including the U.S. and APAC regions.

As AI technology continues to expand, so does the demand for powerful data centers. Traditional cooling methods, however, are becoming insufficient, leading to increased energy consumption and water usage. Submer’s sustainable immersion cooling technology eliminates the need for water and significantly reduces energy costs for data centers.

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Digital twins in livestock farming: Tackling climate change and enhancing sustainability

Dr. Suresh Neethirajan, Professor in digital livestock farming at Dalhousie University, explains how digital twins offer transformative potential in livestock farming by improving operational efficiency, ensuring animal welfare, and most critically, reducing the sector’s environmental footprint

✅ Highlights 

• The urgency of climate action in agriculture

• What are digital twins?

• Socio-economic and environmental impacts

• Overcoming challenges to adoption

Climate change poses a significant threat to global food security, and agriculture remains one of the largest contributors to greenhouse gas (GHG) emissions. In this context, digital twins present an innovative and scalable solution for reducing emissions, optimizing resource use, and contributing to global climate action.

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Do lean startup methods work for deep tech?

✅ Highlights 

• Investment in deep tech innovation

• The limits of the lean startup methodology in deep tech

• How to reduce technological uncertainty in deep tech

Deep-tech innovation, which harnesses advanced scientific understanding to create groundbreaking technologies, has seen significant growth — and investment — over the past decade. Companies that try to apply traditional startup methodologies, like the lean startup approach, to deep-tech ventures may face surprising pitfalls as deep-tech projects often involve technologies that do not yet exist. While traditional tech startups try to refine existing tech and try to reduce market uncertainty, deep-tech startups need to mitigate technological uncertainty.

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