MSCI acquires First Street for $120M to expand physical climate risk modeling

Key Facts

1MSCI acquired First Street, a physical climate risk modeling firm, for $120 million.

As financial institutions face mounting pressure to report the financial consequences of severe weather events, MSCI has acquired First Street, a physical climate risk modeling firm, for $120 million. The deal aims to integrate climate risk calculations into capital pricing and allocation, according to media reports.

The acquisition comes amid growing demand for climate risk assessment tools in the financial data sector, as institutions seek to meet regulatory and disclosure requirements. MSCI, a leading provider of indices and analytics, is expanding its sustainability product suite through this purchase.

MSCI shares closed at $554.85 on June 26, with a daily range of $545.68–$566.16. Investors will watch for implementation details and the deal's impact on revenue, especially given the rising competition in climate data services.