BlackRock, the world’s largest asset manager, has written to a large client explaining how to use the information from Aladdin Platform to create climate disaster models.
“Customers have been expecting their asset managers to have a better understanding of interest rates, inflation and macroeconomic growth. Increasingly, they expect the same sophisticated understanding of net zero transition,” BlackRock said in a February 3 customer letter.
The US $ 10 tn general manager said that starting this year, customers will be able to experience the ‘transitional situation’ at Aladdin, which shows how the global economy is moving to zero zero in terms of technologies, sectors and regions.
In a letter signed by Vice-Chairman Philip Hildebrand and other senior Blackgrass executives, Aladdin said the company will use proprietary technology and information to provide analytics and portfolio advice to its customers.
Launched in December 2020, Aladdin Climate will be available through the Aladdin Forum, which will include other asset managers, banks, pension funds and insurance companies.
The climate measurement measures the impact of physical hazards on both financial and portfolio levels, such as extreme weather events and policy changes, new technology and power supply.
BlackRock strengthened this capability in June last year with the acquisition of climate change model technology from an independent consultant, Baringa Partners, to enable it to develop disaster models.
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BlackRock, the CEO of BlackRock, said in a letter to company executives last month that increasing the company’s focus on sustainable investment does not mean the asset manager is “awake”.
“We focus on sustainability, not because we are environmentalists, but because we are the capitalists and trustees of our clients,” Fink wrote in the January Mission.
According to BlackRock, in 2021, 70% of the broader market ESG indexes outperformed their non-ESG counterparts, averaging more than 100 basis points.
“We also believe that the impact of climate change on markets will have a significant impact on our property prices,” BlackRock told its customers on February 3.
The transition to a zero-zero economy is a major focus for asset managers, with many of them, as big shareholders, using their influence to outline their transition plans in detail.
Some are following in the footsteps of those who could not improve on their journey to zero-zero business models.
Among them are AXA Investment Managers. The management of 87 879 billion has warned that French insurance companies will implement a “three strikes and you go out” policy if climate change does not meet expectations.
Read BlackRock buys climate change technology to strengthen Aladdin’s platform
In its letter, BlackRock outlined several other plans for this year, including the launch of new active strategies and the addition of climate measurements to the iShares ETF product range.
The agency said it will expand its capacity to include portfolio consulting and foreign investment consultants to include and customize climate change analysis.
BlackRoG intends to create a hub for selected strategies around the Net-Zero transition, including an incubator to explore investment products focused on new technologies such as green hydrogen, carbon dioxide, green cement and sustainable aviation. Fuel.
“Capital is important to market these new technologies and innovate, and many of you have told us that this is one of the most exciting investment opportunities in the next decade,” said Black Rock.
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