BlackRock has taken a minority stake in sustainability analytics and data science platform Clarity AI.
The platform's capabilities will be integrated with BlackRock's end-to-end operating system Aladdin, a news release said.
The size of the stake and terms of the deal were not disclosed. BlackRock joins Deutsche Borse, Kibo Ventures, Mundi Ventures, Seaya Ventures and Founders Fund as investors in Clarity AI. A spokesman for the platform declined to disclose the total size of the investments, but said Clarity AI remains independent and that each investor holds a minority stake.
Clarity AI uses big data and machine learning to create insights into sustainability and impact across companies, countries and local governments. It analyzes more than 30,000 companies in almost 200 countries.
"Investors are galvanized around sustainability as a critical consideration in managing immediate and future risks, and better data is foundational to this," Mary-Catherine Lader, head of Aladdin sustainability at BlackRock, said in a news release. "As BlackRock makes sustainability its standard for investing, we are committed to raising the standards for ESG data and technology. We're investing in new analytics and software in Aladdin and are also integrating capabilities from strategic partners like Clarity AI so clients can understand their investments' social and environmental impact and risks."
Rebeca Minguela, founder and CEO of Clarity AI, added in the same release that the strategic partnership "reflects the growing demand for our innovative approach in helping investors assess the impact of companies on our society and planet."
A recent survey by BlackRock found that global investors plan to double their allocations to ESG strategies by 2025. However, 53% of respondents cited concerns over poor quality or availability of ESG data and analytics.
BlackRock's Aladdin platform last year added 1,200 sustainability metrics and established data partnerships to help investors understand ESG and physical climate risks and opportunities, the release said. The money manager also recently launched Aladdin Climate, a software application to help investors understand and act on climate risk.