Breakthrough Climate Risk Model Reshapes Real Estate Investment Decisions

1. Aisix Solutions Inc.is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. 
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Aisix Solutions Inc.
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Aisix Solutions Inc. (AISX:TSX.V; AISXF:OTCQB; QT7: FSE) has entered a strategic partnership with Stessa Real Estate to integrate its Climate Genius platform into real estate investment assessments. Through this collaboration, every property analyzed by Stessa will include a Climate Genius climate score, providing investors with insights into long-term climate risks such as extreme weather, fire hazards, and other environmental factors.

Stessa Real Estate aims to enhance transparency in property investment by equipping its clients with climate risk data. "Our goal is to help clients make more informed, more secure investments," said Ben Battistessa of Stessa Real Estate. "By integrating Climate Genius, we're providing real estate investors with a crucial layer of insight, helping them safeguard their assets while making informed decisions about their portfolios."

Aisix Solutions views real estate as a sector highly exposed to climate-related financial risks. "Real estate is one of the most vulnerable asset classes when it comes to climate risk," said Mihalis Belantis, chief executive officer of Aisix Solutions in the official announcement. "Through this partnership, Stessa Real Estate is taking a proactive approach, equipping its investors with the knowledge they need to make climate-informed decisions."

The partnership reflects a growing emphasis on climate resilience in investment decisions, aligning with broader industry trends in climate risk assessment. Aisix Solutions specializes in climate data analytics and regulatory reporting solutions, serving industries such as insurance, finance, and risk management. Its Climate Genius platform leverages advanced modeling and geospatial data to provide property-specific climate risk assessments.

In addition to its partnership with Stessa Real Estate, Aisix Solutions has entered into an investor relations and communications agreement with Triomphe Holdings Ltd., operating as Capital Analytica. The three-month agreement, beginning March 1, 2025, includes a $60,000 fee for services related to capital markets consultation, social media engagement, sentiment analysis, corporate video dissemination, and investor communications. Capital Analytica, based in Nanaimo, is owned by Jeff French, who is independent of Aisix Solutions and does not hold any securities in the company.

Financial Sector Adapts to Rising Climate Risks and Regulatory Pressures

The financial sector has increasingly prioritized climate risk assessment as regulatory frameworks evolve and market dynamics shift. According to a February 19 report from Bloomberg Professional Services, financial institutions have faced challenges in integrating physical climate risk into their financial models, with practitioners emphasizing the need for "transparent and defendable modeling approaches" to assess asset resilience. Bloomberg’s research highlighted the financial consequences of extreme weather, including how a severe drought in Clyde, Texas, forced the city to default on its municipal water system debt, demonstrating the financial impact climate risks could have on municipal bonds.

On February 27, a report from the Chicago Booth Review examined how climate risk perceptions influence investor behavior. Researchers found that mutual fund managers who personally experienced extreme weather events were more likely to adjust their portfolios in response to climate risk, often shifting capital toward sectors perceived as more resilient, such as semiconductors, insurance, and electric vehicles. "The occurrence of these shocks in an area leads to increased Google searches for the term 'climate change,’ providing evidence that these heat shocks indeed induce updates in climate beliefs," the study noted. This behavioral shift indicated that climate risk considerations were influencing broader market trends beyond sustainability-focused investments.

In a March 3 Chief Investment Officer article, Todd Ahlsten discussed how institutional investors have had to adapt long-term planning strategies in response to climate risk. He wrote that "extreme weather events, rising insurance costs, and regulatory shifts are altering competitive dynamics across multiple sectors." The financial consequences of climate change have reshaped investment approaches, leading firms to allocate capital toward businesses that facilitate climate resilience. The article noted that risk management companies have increasingly focused on climate analytics to help corporate clients quantify potential impacts and enhance resilience planning.

Data from FEMA has also underscored the growing financial toll of climate disasters. The agency reported that from 1980 to 2024, the U.S. experienced 403 weather and climate disasters where losses exceeded US$1 billion each, with total costs surpassing US$2.9 trillion. In 2024 alone, there were 27 such billion-dollar events, including severe storms, flooding, and wildfires, reflecting an upward trend in the frequency and cost of climate-related disasters. FEMA noted that "the increase in population and material wealth over the last several decades are an important cause for the rising costs," particularly in high-risk areas such as coastal regions and wildfire-prone zones.

Aisix Solutions Expands Climate Risk Insights Amid Rising Regulatory Demands

Aisix Solutions is positioning itself as a key provider of climate risk insights across multiple industries, including finance, insurance, and government. The Climate Genius platform is designed to address increasing regulatory requirements, particularly those related to financial disclosures under frameworks such as IFRS S2 and OSFI B-15. These regulations require financial institutions and publicly traded companies to assess and report on climate-related risks in their portfolios, a service that Aisix aims to facilitate.

The company's investor presentation highlights its focus on providing data-driven climate insights through a business model that includes both Data as a Service (DaaS) and Software as a Service (SaaS) offerings. Its revenue streams include subscription-based access to climate data, pay-per-use analytics, and premium features such as AI-powered scenario modeling and regulatory reporting tools.

Aisix Solutions has a growing network of partners and clients, including federal agencies, municipalities, and private-sector firms seeking climate risk solutions. Its involvement in the development of the National Flood Hazard Data Layer (NFHDL) in Canada demonstrates its capability in aggregating and analyzing large-scale climate data. According to Alexandre Beaulieu, director at the Canada Centre for Mapping & Earth Observation, "AISIX and Ebbwater have done an exceptional job in compiling, synthesizing, and creating the interoperable NFHDL."

With climate risk assessments becoming an integral part of investment decision-making, Aisix Solutions continues to expand its service offerings to address regulatory and market demands. Its partnership with Stessa Real Estate further extends its reach into real estate investment, providing property investors with data-driven insights to manage climate-related financial risks.

Ownership and Share Structure

As for the ownership of Aisix, according to Refinitiv, two insiders hold 14.25% of the company. They are CEO and Director Belantis with 13.03% and Cofounder and Advisor David Poole with 1.22%. 

Retail investors own the remaining shares as there are no institutional owners. 

In terms of structure, Aisix has 113.62 Million shares outstanding and 80.67 million free-float traded shares. 

The firm's market cap is CA$3.409 million, and it trades in a 52-week range of CA$0.015 and CA$0.07 per share.