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BlackRock boosts sustainability analytics with stake in Clarity AI

BlackRock boosts sustainability analytics with stake in Clarity AI

BlackRock has taken a minority stake in Clarity AI, a Spanish fintech firm that uses machine learning and big data to help investors understand the sociatel impact of their investment portfolios.

Founded in 2017, Clarity AI has offices in the US, UK and Spain and a client network with over $10 trillian assets under management (AUM). The company's proprietary tech platform performs sustainability assessments covering more than 30,000 companies, 198 countries, 187 local governments and over 200,000 funds.

BlackRock says it will integrate Clarity AI’s capabilities with Aladdin, its end-to-end operating system for investment professionals.

Mary-Catherine Lader, head of Aladdin sustainability at BlackRock, says: “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 analyse a broader universe of companies, address their disclosure obligations and build more sustainable portfolios.”

BlackRock’s Aladdin platform last year added 1,200 sustainability metrics and established data partnerships to help investors understand ESG and physical climate risks and opportunities.

The firm also recently unveiled Aladdin Climate, which helps investors understand and act on climate risk. It 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.

BlackRock's interest in Clarity AI comes just two months after the firm secured a $15 million funding round led by Deutsche Börse.

The terms of the BlackRock transaction were not disclosed.

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