Bloomberg today unveiled a new sustainable investment screening tool available on the Bloomberg Terminal.
This innovative solution allows investors to assess portfolios, funds, and indices against sustainability criteria and thresholds that users can customize. The tool aims to streamline the investment decision-making process and assist clients with regulatory compliance, ensuring a transparent screening experience.
As the demand for sustainable investment options grows, investors seek straightforward and reliable methods to verify if investment products meet specific sustainability criteria. Globally, regulators are setting standards for what constitutes a sustainable company and are requiring that investments be scrutinized to ensure they meet these standards. Bloomberg’s tool simplifies this process, enabling investors to determine how well a portfolio, fund, or index aligns with their predefined sustainability criteria.
Patricia Torres, global head of Sustainable Finance Solutions at Bloomberg, highlighted the challenges and solutions provided by the new tool. Torres 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.
“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 ESG data, proprietary metrics and scores, the tool enables investors to assess investments in a comparable and scalable way.”
Users of the tool can fully customize their screening process by selecting specific sustainability targets, exclusion or “no harm” criteria, and governance requirements. The tool then calculates how much of a portfolio, fund, or index meets the user’s sustainability criteria and offers a detailed view of all holdings to quickly identify any discrepancies.
The tool is also designed to help investors ensure compliance with various global regulations, such as the EU’s MiFID II and the Sustainable Finance Disclosure Regulation (SFDR), the United Arab Emirates’ new sustainable finance framework, the UK Financial Conduct Authority’s forthcoming sustainability disclosure requirements, and upcoming guidance from the US Securities and Exchange Commission on ESG disclosures and fund labelling.
Furthermore, the solution facilitates the assessment of funds under the SFDR framework, indicating the percentage of a fund’s sustainable investments as reported by the fund itself. Bloomberg’s Sustainable Finance Data License also provides enterprise-wide access to essential data for constructing sustainable investments, including potential Sustainable Development Goal (SDG) impacts and SFDR Principal Adverse Impact sector performance metrics.
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