Global data analytics provider MSCI Inc. has acquired First Street, a provider of physically-based climate risk data and analytics for all properties globally, to strengthen its global physical climate risk capabilities.
Transaction consideration includes a $120 million cash payment at closing, which is subject to customary closing adjustments, with the potential for additional cash payments within the first two years after closing if certain revenue thresholds are met.
The transaction is expected to close in the third quarter of 2026, and upon completion, First Street’s financial results will be reported in MSCI’s Sustainability and Climate segment.
The acquisition further strengthens MSCI’s market position in climate investment tools and research, delivering transparency, innovation and scalability, building on decades of expertise in geospatial intelligence, climate scenario analysis and transition finance.
Through the acquisition, MSCI’s broad range of climate and geospatial solutions will be integrated with First Street’s data and tools to enable the quantitative assessment of financially relevant physical climate risks at any geographic coordinate and in more than 2 billion buildings worldwide.
MSCI explains that these additional capabilities can help institutions meet growing regulatory and reporting requirements while supporting entity risk management and adaptation and resilience planning.
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 disruption.
Proprietary data on building characteristics, infrastructure dependencies and site-level adaptability powers these tools. These models translate physical hazards into measurable financial impact estimates.
The interactive platform delivers these insights across assets, companies and portfolios through visualization and on-demand, customizable analytics in a unified AI workflow.
Richard Mattison, head of sustainability and climate at MSCI, said: “Due to recent geopolitical unrest, supply chain disruptions and the growing impact of climate disasters, the financial consequences of where assets are located have come into sharp focus.
“To this end, investors, lenders and insurers are increasingly seeking deeper, more actionable analysis of physical risks across a company’s operations and investments. Integrating First Street data into MSCI’s existing geospatial capabilities will enable clients to better understand their changing risk exposures and translate this directly into financial decisions.”
First Street founder and CEO Matthew Eby added: “First Street was founded on the simple belief that every financial decision should take climate change into account. We built the Climate Risk Financial Model (CRFM) category to make this belief a reality. Joining MSCI puts our real estate-level science in front of the world’s leading investors, lenders and insurers and transforms climate risk from a disclosure exercise into a daily input into how capital is priced and allocated.”
