Apollo Strengthens Climate Risk Review Process

Apollo Global Management is broadening its climate risk review to include granular, asset-level assessments of extreme-weather impacts on valuations across deals, moving beyond top-down analyses begun in 2023. The firm integrates data-driven evaluations—covering drought, flood, heat and wildfire—into due diligence as insurers' losses and firms like KKR, JPMorgan and MSCI warn that physical risks already affect asset values.
Key Points
- 1Expands bottom-up asset-level evaluations of physical and transition risks across deals and asset classes.
- 2Highlights increasing insured losses and natural catastrophes that materially compress asset valuations and raise operating costs.
- 3Implies investors and lenders must integrate climate-adjusted valuation, insurance and due diligence into investment decisions.
Scoring Rationale
Relevant industry adoption and official sources support usefulness, but incremental rather than disruptive change limits impact.
Sources
Public references used for this report.
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