BlackRock has acquired a minority stake in Clarity AI, a Spanish fintech firm specializing in machine learning and big data solutions designed to help investors evaluate the societal impact of their investment portfolios.
Established in 2017, Clarity AI maintains offices across the US, UK, and Spain, and boasts a client network with over $10 trillion in assets under management (AUM). The company’s advanced technology platform conducts sustainability assessments for more than 30,000 companies, 198 countries, 187 local governments, and over 200,000 funds.
BlackRock plans to incorporate Clarity AI’s advanced capabilities into Aladdin, its comprehensive operating system tailored for investment professionals.
Mary-Catherine Lader, Head of Aladdin Sustainability at BlackRock, commented, “As we prioritize sustainability in our investment strategies, we are dedicated to enhancing the standards for ESG data and technology. Our investment in new analytics and software within Aladdin, alongside strategic partnerships like that with Clarity AI, empowers clients to comprehend their investments’ social and environmental impacts and associated risks. Clarity AI’s technology utilizes machine learning, enabling Aladdin clients to analyze a diverse array of companies, meet their disclosure obligations, and develop more sustainable portfolios.”
Last year, BlackRock’s Aladdin platform expanded its offering by adding 1,200 sustainability metrics and establishing data partnerships aimed at enhancing understanding of ESG and climate-related risks and opportunities. Furthermore, the firm recently introduced Aladdin Climate, a groundbreaking software application that assists investors in understanding and addressing climate risk by measuring both the physical risks of climate change and the transition risks associated with moving towards a low-carbon economy.
This investment in Clarity AI comes shortly after the firm raised $15 million in a funding round led by Deutsche Börse, although specific terms of the BlackRock deal have not been disclosed.