BlackRock has developed a new analytics offering that it claims sets “a new standard in providing investors actionable security-level data on climate risk”.
It said that with Aladdin Climate, investors could now analyse climate risk and opportunities at the security level and measure the impact of policy changes, technology, and energy supply on specific investments.
The new offering also investors measures of physical climate risk, helping them to stress test investments in different climate scenarios.
Aladdin is the name of BlackRock’s proprietary investment management and operations platform, combining risk analytics with portfolio management, trading and operations tools.
BlackRock said Aladdin Climate was 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 Rob Goldstein, BlackRock’s chief operating officer.
“Yet, while lots of people are talking about climate risk today, what investors need to make informed decisions is data tied to specific securities in their portfolio. Aladdin Climate is a dramatic step forward to begin filling the information gap necessary to build truly sustainable portfolios.”
The development of Aladdin Climate comes against the backdrop of what BlackRock said was “dramatic growth in relevant corporate disclosures and unstructured data”.
This had created “unprecedented opportunities to enhance climate analytics,” the world’s largest asset manager said.
BlackRock also announced that it had expanded access to environmental, social and governance (ESG) data through new partnerships with data providers Sustainalytics and Refinitiv.
Aladdin now offers more than 1,200 key performance indicators to help portfolio and risk managers identify sustainability-related risks in their exposures.