ISS STOXX Acquires Climate Risk Firm Sust Global

To improve its sustainable finance and risk analytics capabilities, ISS Sustainability Solutions, the sustainable investment branch of ISS STOXX, has announced the acquisition of Sust Global, a California-based climate risk intelligence firm known for its geospatial AI-powered solutions. The acquisition, revealed on August 5, 2025, is a significant step in ISS STOXX’s efforts to address the increasing demand from institutional investors for effective tools to evaluate and manage climate and nature-related risks.

Founded in 2020 by CEO Josh Gilbert and CTO Gopal Erinjippurath, Sust Global has become a key player in climate analytics. The firm combines machine learning techniques with satellite data to help investors assess climate risk in their portfolios. Its main offering is a proprietary geospatial AI engine that provides high-resolution, region-specific insights into physical climate threats and environmental weaknesses. By interpreting patterns, trends, and spatial relationships, Sust Global’s platform offers users critical data on significant climate and nature-related risks, improving their ability to proactively address environmental challenges.

Sust Global provides a variety of data products tailored to the needs of institutional investors. These products fit smoothly into clients’ existing workflows and include a visual risk analytics platform, regulatory reporting tools, customizable data exports, and direct API integrations. The company also offers customized solutions to meet specific client needs, establishing itself as a flexible partner in the evolving ESG and sustainability data field.

The acquisition occurs during a time of rising demand for geospatial climate data. According to Till Jung, Head of Sustainability Business at ISS STOXX, this move responds to institutional investors’ increased need for sophisticated analytics tools. Jung explained, “Institutional investors’ need for geospatial data and better physical risk analytics is growing quickly. Sust Global is a strong complement to our existing asset-level data. Our ability to combine their platform and AI-powered physical risk models will result in effective solutions for our institutional clients.”

ISS STOXX, which already has a strong base in asset-level sustainability data, views the addition of Sust Global’s geospatial analytics as an important improvement. Overlaying Sust Global’s AI-driven insights onto ISS’s existing datasets is expected to create a new set of powerful tools for clients managing ESG risk. As sustainability reporting regulations tighten worldwide, investors are under increasing pressure to understand the climate vulnerabilities in their portfolios. This acquisition puts ISS STOXX in a good position to support those requirements.

From Sust Global’s viewpoint, the acquisition offers a path to rapid growth and expanded global reach. In a joint statement, co-founders Josh Gilbert and Gopal Erinjippurath expressed optimism about the opportunities this deal creates. They said, “Through this acquisition, we will quickly scale our solutions, helping more global investors understand and address tangible asset risks by using the latest in earth system knowledge, data science, and AI.” The founders also highlighted that joining ISS STOXX would speed up their product development and allow them to present their innovative risk models to a wider audience in international markets.

This deal reflects a larger trend in the sustainable finance sector, where climate risk analysis has shifted from a specialized concern to a central investment issue. The rising occurrence of extreme weather events, increasing regulatory focus on climate disclosures, and greater investor awareness of long-term climate exposure are changing how financial institutions view risk. Consequently, companies like Sust Global, which provide detailed, science-based insights into physical risks, are becoming essential in portfolio management and regulatory compliance.

Furthermore, integrating geospatial AI with traditional financial and corporate datasets is creating a new level of climate intelligence. Instead of relying on outdated risk models or generic climate scenarios, investors now seek real-time, asset-specific data that reflects localized environmental conditions. Sust Global’s ability to deliver this depth of insight positions ISS STOXX at the forefront of this change, strengthening its reputation as a provider of thorough sustainability solutions.

By acquiring Sust Global, ISS STOXX not only boosts its technological and analytical skills but also demonstrates its long-term commitment to giving investors the tools they need to navigate the complex and shifting landscape of climate risk. As ESG considerations increasingly affect capital allocation choices, combining geospatial intelligence with sustainability data may transform how investors assess resilience, opportunity, and value in a changing climate.