BlackRock is set to acquire and integrate Baringa’s Climate Change Scenario Model into its Aladdin Climate technology.
Both firms aim to set the standard for modelling the impacts of climate change and the transition to a low carbon economy on financial assets for investors, banks and other clients.
Baringa and BlackRock will develop climate risk models underpinning Aladdin Climate, as well as innovating other climate analytics solutions.
As part of the announcement, Baringa will use the core Aladdin Climate capabilities as part of its growing global consulting work in advising financial services, governments, regulatory bodies, and clients across all sectors on climate risk and developing net zero strategies.
According to Sudhir Nair, global head of the Aladdin Business at BlackRock, investors and companies are increasingly recognising that climate risk presents investment risk.
Nair says: “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.”
Colin Preston, global head of climate solutions at Baringa, comments: “Having developed the leading Climate Change Scenario Model, we are excited to partner with BlackRock to accelerate the adoption of this solution by organisations across the globe.”
Preston adds: “The integration of Baringa’s Climate Change Scenario Model into BlackRock’s Aladdin platform will inform the reallocation of capital across the global economy, accelerating the transition to net zero.”
