Global data analytics provider MSCI Inc. has acquired First Street, a provider of physics-based climate risk data and analytics for every property in the world, to enhance its global physical climate risk capabilities.
The transaction consideration includes a cash payment of $120 million at closing, which is subject to customary closing adjustments, with the potential for additional cash payments during the first two years post closing if certain revenue thresholds are achieved.
The deal is expected to close in the third quarter of 2026, and post closing, First Street’s financial results will be reported within MSCI’s Sustainability and Climate segment.
The acquisition further strengthens MSCI’s market position in climate investment tools and research, building on decades of expertise in geospatial intelligence, climate scenario analysis, and transition finance to deliver transparency, innovation and scalability.
Through this acquisition, MSCI’s extensive climate and geospatial solutions will be integrated with First Street’s data and tools to enable quantified assessments of financially relevant physical climate risk at any geographic coordinate and across over two billion structures worldwide.
These additional capabilities can help institutions meet rising regulatory and reporting requirements while supporting physical risk management and adaptation and resilience planning, explained MSCI.
First Street provides multi-hazard models that incorporate climate signals and are validated against observed events to assess current and future physical risk exposure, asset damage and business interruption.
Proprietary data on building characteristics, infrastructure dependencies and site-level adaptation power the tools. These models translate physical hazards into measurable estimates of financial impact.
The interactive platform delivers these insights through visualisations and on-demand, customisable analytics for individual properties, companies and portfolios within one unified AI-enabled workflow.
Richard Mattison, Head of Sustainability and Climate, MSCI, said, “The financial consequences of where assets are located have come into sharp focus due to the recent geopolitical turmoil, supply chain disruption and the growing impact of climate hazards.
“In response, investors, lenders and insurers are increasingly looking for more in-depth and actionable analysis of the physical risk held in the footprint of a company’s operations and investments. The integration of First Street data into MSCI’s existing geospatial capabilities will enable clients to be better informed about their changing risk exposures and translate that directly into financial decision making.”
Matthew Eby, Founder and Chief Executive Officer, First Street, added, “First Street was built on the simple conviction that every financial decision should account for a changing climate. We built the Climate Risk Financial Modeling (CRFM) category to turn that conviction into reality. Joining MSCI puts our property-level science in front of the world’s leading investors, lenders and insurers and turns climate risk from a disclosure exercise into a daily input for how capital is priced and allocated.”
