Bloomberg enhances SFDR solution to boost ESG coverage


Bloomberg’s sustainable finance disclosure (SFDR) solution has launched a new dashboard that enables fund managers to pick and track ESG-aligned indicators.

According to Bloomberg, the new dashboard will enable fund managers to track and pick investments that align with the key ESG indicators mandated for SFDR reporting, PAIs or principal adverse impact indicators.

Bloomberg claims the solution offers complete coverage of mandatory PAIs by combining data aggregated by Bloomberg with data on controversial weapons and UNGC violations from ESG Book, a sustainability data and technology provider, and data on civil liberties and political rights from Freedom House, a non-profit organisation that monitors the health of democracy and freedom worldwide.

Bloomberg’s SFDR dashboard enables firms to analyse and track underlying companies in each fund they are invested in against a peer group of companies and across a range of ESG criteria, including principles of good governance defined in SFDR. This facilitates additional due diligence and confidence in fund classification decisions.

The firm’s SFDR solution helps clients with the challenging disclosure of PAI indicators by mapping them to company reported ESG data on over 15,000 companies globally. To help firms measure the carbon footprint of portfolio investments, another key SFDR assessment, Bloomberg provides company reported emissions and estimates for Scope 1, 2 and 3 emissions based on a proprietary machine learning smart model as well as an implied-industry model, resulting in coverage of over 100,000 companies.

Bloomberg business manager, sustainable finance solutions Nadia Humphreys said, “Bloomberg’s SFDR solution goes beyond supporting firms with reporting, it helps investors manage portfolios with SFDR’s objective in mind, which is to drive investments towards more sustainable companies. We help fund managers cut through the complexity and empower them to conduct precise due diligence on the sustainability of their investments.”

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