Bloomberg’s recent Going Private newsletter featured insights from Rémy Estran-Fraioli, CEO of Scientific Climate Ratings, in a piece examining how private equity firms are overhauling their risk assessments as extreme heat, floods, and storms increasingly threaten portfolio returns.

The newsletter frames climate risk as a shift in institutional priorities, with investors across private markets seeking out actionable insights into their physical risk exposure.

Rémy Estran-Fraioli told Going Private: “What we are seeing is a shift from climate risk as a disclosure exercise to climate risk as a core due-diligence and valuation question.” He added that for infrastructure and private markets specifically, investors need more than exposure maps. The most material information is how these hazards translate into downtime, repair costs, revenues, insurance and, ultimately, net asset value.

Key context from the piece includes:

• A stress test conducted by Allianz SE found potential combined economic losses of $638 billion across France, Italy, Germany, and Spain from extreme heat over the next five years.
• Bloomberg Green analysis showed that references to physical climate risk in the latest sustainability reports from 12 major alternative asset managers have nearly doubled from the previous year.
• Venture capital spent $245 million in Q1 2026 on climate monitoring technologies, putting the first half of 2026 on track for the strongest total since 2022, according to BloombergNEF.

This Bloomberg analysis echoes our view that climate risk must be communicated in concrete financial terms to facilitate private markets as they recalibrate their approach to climate risk. Scientific Climate Ratings meets this demand directly, translating asset-level physical and transition exposure into decision-grade ratings that quantify the financial impact on net asset value, rather than leaving investors with qualitative hazard maps alone.

Read the full piece here.