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BlackRock buys stake in ESG data house Clarity AI

Giant says it is making “sustainability its standard for investing”

BlackRock has taken a minority stake in sustainability and impact data platform Clarity AI in a bid to boost the ESG performance of Aladdin, BlackRock’s flagship portfolio management platform. 

It comes just weeks after the investment giant announced Aladdin Climate, which allows users to quantify climate risk within their portfolio. At the same time, it expanded access to ESG data on the main Aladdin platform through new partnerships with data providers Sustainalytics and Refinitiv.

Now, BlackRock has announced it will “boost Aladdin’s forward-looking sustainability analytics and reporting capabilities” through the new deal with Clarity AI. Other investors in Clarity AI include Deutsche Börse and Founders Fund. Terms of the deal with BlackRock were not disclosed. 

Clarity AI’s tech platform delivers insight on the ESG impact of over 30,000 organisations using data science and machine-learning. The platform also supports regulatory and client reporting on sustainability disclosure. 

Mary-Catherine Lader, Head of Aladdin Sustainability at BlackRock, said: “As BlackRock makes sustainability its standard for investing, we are committed to raising the standards for ESG data and technology.”

BlackRock’s quarterly earning call yesterday reported assets under management had grown to some $8trn for the last quarter, a climb of 17%. 

Rebeca Minguela, a Madrid-based Founder and CEO of Clarity AI, was named one of Europe’s top 10 fintech leaders last year. She founded Clarity AI in 2017 after selling her first startup, hotel booking app Blink to giant e-commerce platform Groupon.