BlackRock will acquire and integrate Baringa’s Climate Change Scenario Model into its Aladdin Climate technology, developing the climate risk models that underpin Aladdin Climate, as well as innovating other climate analytics solutions.

Through the partnership, 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.

Sudhir Nair, global head of the Aladdin Business at BlackRock commented: “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.”

BlackRock began developing Aladdin Climate to help clients better understand and mitigate the financial impacts associated with climate change on their portfolios, measuring both the impacts of physical risks, like extreme weather events, and transition risks - such as policy changes, new technology, and energy supply – at the financial instrument and portfolio levels.

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