Insights

PUBLIC, PRIVATE AND THE WHOLE PORTFOLIO VIEW

Aladdin

What is Aladdin Climate?

Central to understanding – and ultimately acting upon – the effects of climate change on investments is a need to quantify the financial impact of climate-related risks. Aladdin Climate was built to quantify climate risks and opportunities in financial terms – bridging climate science, policy scenarios, asset data, and financial models to arrive at climate-adjusted valuations and risk metrics.
Seek magnifier
Climate-based security selection
Including visibility into granular physical exposures and programmatic access to climate analytics
Portfolio pie
Climate-based portfolio modeling
Including reporting, what-if analysis, and optimization
Maintenance tool
Enterprise risk and reporting
Including compliance, risk management, disclosures and regulatory reporting.

What is climate risk?

The changing climate is creating financial risks and opportunities for investors. Climate risk manifests in two ways: physical risk—the first-order risks arising from weather-related events and transition risk — the risks associated with the transition to a lower-carbon economy. When taken together, investors can assess their holistic exposure to climate risk.

Physical risk
Implications of extreme weather events and physical changes in regions around the world
Public Risk
Transition risk
Policy, market responses, and new technologies associated with the transition to a lower carbon economy
Transition Risk
Temperature alignment
Minimizing climate change requires alignment on actions limiting global temperature rise to 1.5°C
Temperature Alignment
BlackRock partners with Baringa
In June 2021, BlackRock and Baringa Partners announced a long-term partnership focused on innovation and co-development of transition risk models – which will integrate leading climate transition research into Aladdin Climate.
Baringa