Originally published on bloomberg.com
Bloomberg announced significant enhancements to its climate solutions suite, designed to help investors assess if companies are on track to meet carbon emissions targets, evaluate the credibility of those targets and estimate how their revenues will be impacted under various transition scenarios.
The expanded offering provides a more comprehensive view of transition risk, including forward-looking assessments of revenue risks and opportunities under different climate pathways, based on detailed data from BloombergNEF (BNEF). The suite enables investors to assess transition credibility and identify leaders and laggards, by addressing four critical questions:
These insights empower investors to align their portfolios with their individually stated net zero goals and capitalize on opportunities presented by the transition to a low-carbon economy.
Making more tangible transition risk assessments
BNEF’s model helping finance professionals assess tangible, bottom-up transition risk in their portfolios is now available on the Bloomberg Terminal and via Data License for the first time. The Transition Risk Assessment Company Tool (TRACT) projects company revenue risk and opportunities for more than 70,000 companies. The model combines companies’ activities, supply chain exposure and regional footprint with the shifting demand for products and commodities projected under different climate scenarios. TRACT benefits from granular transition scenario data: BNEF’s New Energy Outlook (NEO, link ) captures policies, project pipeline, technology costs and consumer adoption trends bottom-up for 20 regions. By the end of September 2024, TRACT will also incorporate the NGFS scenarios.
“Less than a quarter of global emissions fall under an actual carbon pricing scheme. Sector and region-specific technology competition drives the transition, often rendering carbon intensity irrelevant, such as in sectors where no alternatives exist, like steelmaking or aviation. At BNEF we developed the TRACT model to fill this gap and provide clients with a granular approach to transition risk assessments”, said Alexandra Toft, Chief Operating Officer at BloombergNEF.
Assessing carbon targets and transition credibility
In addition to managing transition risk, financial firms increasingly seek to decarbonize their portfolios. Hundreds of asset owners, asset managers and banks representing over 140 trillion USD in total have individually pledged their support for investing aligned to net zero emissions by 2050 or sooner. Bloomberg’s expanded Net Zero data suite provides the tools to help firms measure progress and evaluate the credibility of companies’ transition plans. Firms who want to source this data to feed into their own transition risk assessment processes can access it via Data License for scalable enterprise-wide use.
Key features include:
Edo Schets, Head of Climate Finance Solutions at Bloomberg, said: “Our expanded suite of net zero solutions equips investors with valuable data that enables them to assess how companies are decarbonizing. Whether focused on portfolio alignment or identifying transition opportunities, investors now have the insights they need to set more informed long-term investment strategies.”
The Verdantix Green Quadrant: Climate Financial Data And Analytics Providers 2024 report positions Bloomberg as a Leader offering comprehensive transition risk analytics at the asset and portfolio levels, and strong carbon emission and energy transition solutions.
Bloomberg’s ESG data, research, and analytics span regulatory solutions, carbon emissions, sustainable debt, scores, indices, climate risk, and more. In addition, Bloomberg Terminal users also have access to ESG research from Bloomberg Intelligence and BloombergNEF. Clients can readily access this data on the Bloomberg Terminal via {ESG } or across their enterprise via Data License at data.Bloomberg.com for use in proprietary or third-party applications. To learn more, please visit our website here.
About Bloomberg Bloomberg is a global leader in business and financial information, delivering trusted data, news, and insights that bring transparency, efficiency, and fairness to markets. The company helps connect influential communities across the global financial ecosystem via reliable technology solutions that enable our customers to make more informed decisions and foster better collaboration. For more information, visit Bloomberg.com/company or request a demo.
About BloombergNEF BloombergNEF (BNEF) is a strategic research provider covering global commodity markets and the disruptive technologies driving the transition to a low-carbon economy. Our expert coverage assesses pathways for the power, transport, industry, buildings and agriculture sectors to adapt to the energy transition. We help commodity trading, corporate strategy, finance and policy professionals navigate change and generate opportunities.
Media Contact Anna Schoeffler, [email protected], +33 6 75 54 70 92
