BlackRock, the world’s largest asset manager, announced today a minority investment in sustainability analytics and data science platform Clarity AI.
BlackRock stated that it will integrate Clarity AI’s capabilities in the firm’s end-to-end operating system for investment professionals, Aladdin, building on the platform’s existing sustainability dataset with additional forward-looking sustainability analytics and models, generated from data about companies.
According to BlackRock, over the past year, Aladdin has added 1,200 sustainability metrics and has established data partnerships to help investors understand ESG and physical climate risks and opportunities. Late last year BlackRock announced the launch of Aladdin Climate, a software-based solution enabling financial institutions and investors to quantify and measure the physical risk of climate change and the transition risk to a low-carbon economy on their portfolios, using climate-adjusted security valuations and risk metrics.
Mary-Catherine Lader, Head of Aladdin Sustainability at BlackRock, said:
“Investors are galvanized around sustainability as a critical consideration in managing immediate and future risks, and better data is foundational to this. As BlackRock makes sustainability its standard for investing, we are committed to raising the standards for ESG data and technology. We’re investing in new analytics and software in Aladdin and are also integrating capabilities from strategic partners like Clarity AI so clients can understand their investments’ social and environmental impact and risks. Clarity AI’s capabilities use machine learning to help Aladdin clients analyze a broader universe of companies, address their disclosure obligations and build more sustainable portfolios.”
Clarity AI uses big data and machine learning to create actionable sustainability and impact insights and expand these to a uniquely broad universe of companies, countries and local governments. Its proprietary technology and data science capabilities across environmental and social impact analyze more than 30,000 companies, spanning almost 200 countries. Clarity AI also supports regulatory and client reporting to help investors meet new sustainability disclosure obligations.
Rebeca Minguela, Founder and CEO of Clarity AI, said:
“BlackRock’s investment in Clarity AI and the integration of our capabilities and comprehensive ESG, sustainability and impact data into BlackRock’s Aladdin platform will be transformative, bringing Clarity AI data and analytics to more of the world’s largest and most significant investors. This strategic partnership with BlackRock reflects the growing demand for our innovative approach in helping investors assess the impact of companies on our society and planet.”