BlackRock boosts climate change platform with Baringa's model acquisition

On the 06/17/21 at 10:34AM


Adrien Paredes-Vanheule


The world’s largest asset management company BlackRock on Thursday has entered into a definitive agreement with Baringa Partners to acquire and integrate Baringa’s climate change scenario model into BlackRock’s Aladdin Climate technology.

Baringa brings in 20 years of experience developing climate scenario modelling capabilities, advising clients with assets of over $15trn. Its service range encompasses support to net zero commitments, TCFD reporting, regulatory reporting, investment and capital allocation strategies, as well as the development of climate risk management capabilities.

Through their partnership, Baringa and BlackRock will together develop climate risk models for Aladdin Climate, as well as other climate analytics solutions. It will certainly help the $9trn investment manager embedding more climate transition into market views.

Sudhir Nair, global head of the Aladdin Business at BlackRock, said, “Investors and companies are increasingly recognising that climate risk presents investment risk. Through this partnership with Baringa, we are raising the industry bar for climate analytics and risk management tools, so clients can build and customise more sustainable portfolios. The integration of Baringa’s models and the ongoing collaboration between our firms will enhance Aladdin Climate’s capabilities, helping our clients understand transition risks in more sectors and regions than ever before.” 

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