A change in sentiment toward the world after 2020 has spurred a trend in sustainable investing that is set to rapidly rise over the next five years. In fact, a survey of investors shared by BusinessWire concluded that global investors’ allocations to Environmental, Social, and Corporate Governance (ESG) strategies will likely double by 2025. With consumers’ changing expectations of the world, commercial consequences could face investors who do not consider the environmental or social impact of where they put their money.
However, many investors are left in the dark when it comes to being able to identify and measure the important metrics that indicate true sustainability in their investment options, which is where Clarity AI comes in.
Founded by Rebeca Minguela in 2017, Clarity AI has charged forth with a simple but profound mission under its founder and CEO “to bring impact to markets and contribute to a more socially efficient allocation of capital.” Minguela is an optimist harnessing AI for good, by combining it with the power of technology to create the “world’s most reliable technology platform on social and environmental impact.”
Clarity AI solves the issue of fragmented and unreliable data faced by investors when evaluating the societal impact of a company or corporation. Today, Clarity AI captures the power of machine learning to create actionable sustainability and impact insights that are expanded to a unique and broad range of companies, countries, and local governments.
Clarity AI now analyzes over 30,000 companies for environmental and social impact, providing regulatory and client reporting to aid ethically minded investors seeking to fund a better world. This immediately solves the issue raised by 53% of BusinessWire’s survey respondents, who shared that issues surrounding “poor quality or availability of ESG data and analytics” were a big hurdle for entering the sphere of sustainable investing.
Clarity AI exists for those investors large and small who are seeking clear, reliable, and trustworthy data and analytics to evaluate sustainability. Within the final six months of 2020, Clarity AI experienced a significant increase in adoption, signing clients with eight times the assets under management as in the preceding period.
The company is now scaling up and expanding to meet demand through efforts such its recent $15 million funding round. Another path of expansion for Clarity AI is in powerful strategic partnerships with big players in investment and financial services, with BlackRock recently announcing a minority investment in Clarity AI as well as the intended integration of its software with Aladdin, the company’s end-to-end operating system. Speaking on this, Mary-Catherine Lader, Head of Aladdin Sustainability at BlackRock said, “Investors are galvanized around sustainability as a critical consideration in managing immediate and future risks, and better data is foundation to this.”
BlackRock joins fellow investors Deutsch Börse, Kibo Ventures, Mundi Ventures, Seaya Ventures and Founders Fund. As this trend escalates, Clarity AI will benefit from having anticipated and developed a solution supporting better sustainability data for well-meaning investors.