Business and financial markets information service provider Bloomberg announced the launch of a new tool aimed at helping investors assess and screen portfolios, funds and indices based customized sustainability criteria and thresholds, available on the Bloomberg Terminal.
According to Bloomberg, the new tool aims to help investors make investment decisions and meet regulatory compliance, amidst a diversification of sustainable investment strategies, and as regulators globally require investors to assess if the companies they invest in are meeting sustainability thresholds.
Patricia Torres, Global Head of Sustainable Finance Solutions at Bloomberg, said:
“Sustainability objectives vary from investor to investor, and from product to product. It can be difficult to fully understand whether a portfolio, fund or index meets your own definition of a sustainable investment.”
Using the new tool, investors are able to select from a wide range of criteria and input precise thresholds from categories including sustainability targets, exclusion or “no harm” criteria, and good governanceGovernance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. requirements, with the solution calculating a percentage figure that reveals how much of the portfolio, fund or index is aligned with the criteria, and providing a detailed list view of all holdings to detect outliers.
The tool also enables investors to check whether funds align with regulatory obligations, including the EU’s MiFID II suitability rules and Sustainable Finance Disclosure Regulation (SFDR), the UAE’s new sustainable finance framework, the UK FCA’s forthcoming sustainability disclosure requirements, and future SEC guidance on ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. disclosures and fund labelling. According to Bloomberg, the tool could be used to help assess whether a fund meets classification under the SFDR framework , and the percentage of sustainable investment reported by the fund itself.
Torres added:
“This new Bloomberg tool provides clarity and empowers the user to customize sustainable investment criteria to determine if portfolios, funds, or indices meet their requirements with confidence. Based on Bloomberg’s extensive range of company ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. data, proprietary metrics and scores, the tool enables investors to assess investments in a comparable and scalable way.”