BlackRock Unveils New Offering to Power Investors’ Transition to Net Zero Emissions
“Aladdin Climate" Sets New Standard in Providing Investors Actionable Security-Level Data on Climate Risk
New Partnerships with Sustainalytics and Refinitiv Add to ESG Data Indicators Available Through Aladdin
Aladdin Climate is the first software application to offer investors measures of both the physical risk of climate change and the transition risk to a low-carbon economy on portfolios with climate-adjusted security valuations and risk metrics. Using Aladdin Climate, investors can now analyze climate risk and opportunities at the security level and measure the impact of policy changes, technology, and energy supply on specific investments. Aladdin Climate is initially available as an add-on for existing Aladdin clients globally with asset class coverage rolled out gradually over the course of 2021.
“There is no single issue that clients ask us more about than the impact of climate risk on their portfolio,” said
Evolution of ESG Data
Investors have long highlighted the need for improved ESG data to increase sustainable investing strategies. Now, the dramatic growth in relevant corporate disclosures and unstructured data has created unprecedented opportunities to enhance climate analytics. Today, more than 85% of S&P 500 companies disclose ESG data, compared to 20% ten years ago and Sustainability Accounting Standards Board’s (SASB) disclosures have increased 288% since January.
More and more organizations seek to report on climate risk, whether for mandatory stress tests or voluntary disclosures such as the
“We are building on BlackRock’s strength in financial modeling and risk management to set a standard for climate risk analytics,” said
Partnerships with Sustainalytics and Refinitiv
BlackRock has also expanded access to ESG data through new partnerships with leading data providers Sustainalytics and Refinitiv. Aladdin now offers over 1,200 key performance indicators to help portfolio and risk managers identify sustainability-related risks in their exposures and make informed asset allocation decisions. By providing all Aladdin clients a set of ESG scores across a broad universe of companies, BlackRock is making it easier for investors to incorporate ESG metrics in their investment process.
Aladdin is BlackRock’s end-to-end investment management and operations platform used by institutional investors including asset managers, pension funds, insurers and corporate treasurers. It combines sophisticated risk analytics with comprehensive portfolio management, trading and operations tools on a single, unified platform. Also customized for wealth managers, Aladdin provides a common language across the investment lifecycle and enables a culture of risk transparency among users.