Bloomberg’s new climate tools help investors track companies’ carbon emissions data

Bloomberg, the global financial information firm, has beefed up its climate-solution tools in order to help investors better track how companies are meeting their carbon emissions targets, determine how robust those targets are and estimate what revenue impact energy transition efforts might have.

The new suite of tools is based on detailed data on more than 70,000 companies from BloombergNEF. The suite enables investors to assess transition credibility and identify leaders and laggards, by addressing four critical questions:

1. Are companies setting carbon targets and are they on track to achieve them?
2. How credible are these targets based on companies’ current actions?
3. What future greenhouse gas emissions can be expected based on companies’ carbon commitments?
4. How could transition scenarios, like BNEF’s New Energy Outlook, affect company revenues?

Bloomberg said the answers to these questions provide insights that will 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.

“Our expanded suite of net zero solutions equips investors with valuable data that enables them to assess how companies are decarbonizing,” Edo Schets, head of climate finance solutions at Bloomberg, said in a release on the company’s website announcing the upgrades last week. “Whether focused on portfolio alignment or identifying transition opportunities, investors now have the insights they need to set more informed long-term investment strategies.”

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 have individually pledged their support for investing aligned to net zero emissions by 2050 or sooner, Bloomberg said.

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. The expanded climate tools suite is also available via Bloomberg Terminal subscription.

Key features include:

• Carbon target indicators: Covering almost 24,000 companies, these indicators help provide clarity on whether a company has targets and is on track to meet them. According to the indicators, over 8,000 companies currently have active carbon targets.
• A transition credibility tool: Offering comparative scores and peer analysis, this interactive tool helps investors to identify leaders, laggards, and engagement opportunities in the transition landscape.
• Carbon emission forecasts: Covering over 67,000 companies, these forward-looking projections of how a company’s emissions evolve help investors assess their portfolio’s future decarbonization trajectory.

Read more: Zero Emissions Day 2024: 9 ways you can help give the Earth a needed break