BlackRock to Buy Climate-Change Modeling From Baringa
June 17 2021 - 6:55AM
Dow Jones News
By Dieter Holger
BlackRock Inc. agreed to buy a climate-change model from Baringa
Partners LLP and entered into a long-term partnership with the
consulting firm as the investment titan shores up sustainability
tools for its clients.
The New York-based money manager said Thursday that Baringa's
Climate Change Scenario Model will be added to its Aladdin Climate
technology used by investors, bankers and other clients to gauge
risk in portfolios. Under the deal, Baringa will also use Aladdin's
climate-change offering in its consulting work.
Financial details of the deal weren't immediately available.
Clients with more than $15 trillion in assets are using
Baringa's model to avoid risky bets and invest to reach net-zero
emissions, the companies said.
BlackRock, which has more than $9 trillion under management, has
built out the climate-change analytics tools of its Aladdin
portfolio-management platform and is poised to continue to meet
demand. There was more than $2.3 trillion worth of assets in
sustainable funds world-wide in the first quarter of 2021,
according to Simfund and Morningstar Inc.
In January, BlackRock took a minority stake in ESG data provider
Clarity AI to add the firm's forward-looking
artificial-intelligence data to Aladdin. And last year, Aladdin
added 1,200 sustainability metrics and established ESG data
partnerships.
"Investors and companies are increasingly recognizing that
climate risk presents investment risk," said Sudhir Nair, head of
BlackRock's Aladdin business.
Write to Dieter Holger at dieter.holger@wsj.com;
@dieterholger
(END) Dow Jones Newswires
June 17, 2021 06:46 ET (10:46 GMT)
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