Business and financial markets information service provider Bloomberg announced today the launch of a new solution aimed at enabling investors to assess their exposure to nature and biodiversity risks and the impact of their investments, and to align reporting with the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD).

Key insights provided by the new solution include percentage of company revenue in high nature-risk sectors, involvement in commodities associated with deforestation, percentage of assets in pristine areas, exposure to areas with water stress, and management of nature-related risks such as governance and policies, sustainable sourcing of natural commodities, as well as pollution, waste and water management practices.

The solution aims to enable investors to assess if nature and biodiversity are financially material to a company and its value chain, company exposure to areas of high risk to ecosystem health or high water stress, companies’ nature-related governance structures, whether companies are taking action on drivers of nature loss, and if a company could benefit from nature-related opportunities.

Covering up to 45,000 companies, the solution incorporates information including company-reported Bloomberg data, biodiversity indicators based on by the Natural History Museum’s Biodiversity Intactness Index (BII), water stress analysis using data from World Resources Institute, and deforestation risk analysis.

Bloomberg added that its ESG financial materiality scores now factor in biodiversity and natural capital data reported by companies for relevant sectors.

According to Bloomberg, the new solution comes as nearly $1 trillion in annual financing will be needed by 2030 to sustainably manage biodiversity and maintain the integrity of ecosystems, based on BloombergNEF data, while the World Bank estimates that biodiversity loss could result in a $2.7 trillion annual decline in global GDP by that date.

Christian O’Dwyer, Nature Solutions Product Manager at Bloomberg said:

“The dependency of societies and economies on nature is widely recognized, but evaluating the nature-related risks of companies is complex and can not be reduced to a single metric. With Bloomberg’s new offering, users get a comprehensive assessment of all aspects of a company’s dependency and impact on nature, which can be integrated into decision-making through both Bloomberg Terminal and Enterprise Data Solutions.”