Bloomberg is the first data provider to build a tool using a resource from the UN Environmental Programme Finance Initiative to enable global impact integration in portfolios

Bloomberg announced the launch of a first-of-its-kind tool that investors can use to assess the potential impact of a company’s business on any of the United Nations’ 17 Sustainable Development Goals (SDGs). UN member states adopted the SDGs as key pillars to achieve peace and prosperity for people and the planet by 2030.

The market for impact investing surpassed USD $1 trillion in assets worldwide in 2021, according to the Global Impact Investing Network. Yet, the UN estimates the funding gap to achieve the SDGs by 2030 at USD $2.5-3 trillion per year for developing countries (UN Sustainable Development Group). The new data mapping and materiality assessment will provide more clarity for investors seeking to direct capital towards sustainable assets and assess the alignment of private sector activity with the SDGs.

To meet the increasing investor demand for objective SDG-related data, Bloomberg has integrated the UN Environmental Programme Finance Initiative (UNEP FI) Sector Impact Map, developed as part of its suite of resources based on its unique holistic impact methodology, into Bloomberg’s ESG data offerings. The resource maps more than 500 sectoral activities to 38 impact topics and the SDGs, distinguishing between positive and negative impact a company may have on the environment, people and economic development. UNEP FI’s Sector Impact Map has been applied across 50,000 public companies using Bloomberg’s granular segment revenue classification.

SDG Impact assessments provide investors with additional market information for corporate engagement and security selection. Bloomberg’s extensive data coverage enables users to perform benchmarking and fund classification. As the regulatory reporting environment evolves, the new data mapping can serve as a complementary tool for meeting evolving sustainable finance standards and legislative frameworks. The tool is available on the Bloomberg Terminal and via Bloomberg Data License for enterprise use.

“Bloomberg’s ESG data, research and analytics help clients mitigate risk and comply with new and emerging regulatory requirements, and pursue investments aligned with their sustainability commitments,” said Patricia Torres, Global Head of Sustainable Finance Solutions at Bloomberg. “By mapping the UN Sector Impact Map to our comprehensive and high quality ESG data, our customers can bridge the gap between ESG integration and Impact investing, acting with more clarity and transparency.”

“UNEP FI works with the finance industry to mainstream impact analysis and management in business and finance, to help close the SDG funding gap. We have developed a range of impact management tools and resources across the three pillars of sustainable development and across economic sectors and activities, mapping related negative and positive impacts,” said Careen Abb, SDGs and Impact Lead at UNEP FI. “We are delighted the available resources are being used to help to mainstream impact management, and to accelerate the transition to an economy that helps deliver the SDGs.”

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