Bloomberg has announced a series of enhancements to its climate solutions suite, aimed at enabling users to evaluate companies’ climate emissions targets, progress credibility, and the potential revenue impacts of their efforts. These updates are designed to help investors align their portfolios with net zero investment goals and make informed decisions based on a comprehensive assessment of various climate-related factors. The upgraded suite provides investors with tools to evaluate whether companies are setting carbon targets, track their progress, and gauge the credibility of these targets based on the companies’ current actions. It also includes projections of future greenhouse gas (GHG) emissions based on existing carbon commitments and assesses how different climate transition scenarios could impact company revenues. A significant part of the enhancements is the BloombergNEF (BNEF) Transition Risk Assessment Company Tool (TRACT), which is now available through the Bloomberg Terminal and Data License. This tool was created for financial professionals to assess the underlying exchange risk on their portfolios, focusing on more than 70,000 companies. TRACT integrates the company’s operations, supply chain output and regional footprint with expected changes in products and raw materials under climate conditions. This model allows investors to determine the risks of income and opportunities related to climate change.
In addition, Bloomberg has expanded its Net Zero data set to help investors assess the validity and progress of companies’ transition plans. The main features of the set are indicators that assess whether the company has set carbon reduction targets and is on track to achieve them. The suite also offers a transition credibility tool, providing comparative scores and peer analysis to identify leaders, laggards, and potential engagement opportunities. Furthermore, carbon emissions forecasts help investors evaluate the decarbonization pathways of companies and project how portfolios are likely to evolve in response to emissions reductions. Edo Schets, Head of Climate Finance Solutions at Bloomberg, emphasized the value of these enhancements for investors. He noted that the expanded suite equips them with crucial data to assess how companies are managing their decarbonization efforts. Whether investors are focused on aligning their portfolios with net zero goals or identifying potential opportunities during the climate transition, the new tools provide valuable insights for setting long-term, informed investment strategies. With these updates, Bloomberg continues to strengthen its role as a leading provider of business and financial information, meeting the growing need for performance data in financial climate.