We gather developments and commentary in and around the ESG investment space.
BlackRock, the world’s largest asset manager, has created an app which allows investors to track how climate change creates physical risks; it also plots the risks posed by switching to a low-carbon economy.
The offering is called Aladdin Climate, developed through the US firm’s Aladdin platform, which is for end-to-end investment management and operations.
Investors can analyse climate risk and opportunities at the security level and measure the impact of policy changes, technology, and energy supply on specific investments. Aladdin Climate is initially available as an add-on for existing Aladdin clients globally with asset class coverage to be 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,” Rob Goldstein, BlackRock’s chief operating officer, said. “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.”
ESG data is evolving fast, BlackRock said, noting that more than 85 per cent of S&P 500 companies disclose such information data, compared with 20 per cent who did so ten years ago.
BlackRock said it has also expanded access to ESG data through new partnerships with data providers Sustainalytics and Refinitiv.