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Key Impact Points:
- Bloomberg’s new solution offers investors comprehensive insights into nature and biodiversity-related risks across 45,000 companies.
- Powered by Bloomberg’s data combined with biodiversity sources like the Natural History Museum’s Biodiversity Intactness Index.
- Helps investors align with Taskforce on Nature-related Financial Disclosures (TNFD) recommendations and make nature-aware investment decisions.
Why it matters:
As global awareness of biodiversity loss grows, investors are looking for ways to assess and manage their exposure to nature-related risks. Bloomberg’s new data and analytics tool provides actionable insights to help investors navigate these challenges, especially as almost $1 trillion will be needed annually by 2030 to manage biodiversity sustainably.
What’s new:
Bloomberg has launched a comprehensive data and analytics solution that enables investors to assess nature-related risks and opportunities. The tool provides insights into a company’s dependencies on nature, biodiversity risks, water stress, deforestation exposure, and more.
The offering helps investors assess their exposure to nature-related risks, make nature-aware investment decisions and align reporting with the recommendations of the Taskforce on Nature-related Financial Disclosures, by answering the following questions:
- Is nature and biodiversity financially material to a company and its value chain?
- How exposed is the company to areas of high risk to ecosystem health or high water stress?
- Does the company have appropriate nature-related governance structures and is it taking action on drivers of nature loss?
- Could the company benefit from nature-related opportunities?
The big picture:
Biodiversity loss could shrink global GDP by $2.7 trillion annually by 2030, according to the World Bank. Bloomberg’s new offering helps investors evaluate nature-related risks, including water stress, deforestation, and asset locations in high-risk areas, with biodiversity data powered by the Natural History Museum’s Biodiversity Intactness Index.
Related Article: Bloomberg Philanthropies Partners with U20 to Boost Urban Climate Action at G20 Summit
What they’re saying:
Christian O’Dwyer, Nature Solutions Product Manager at Bloomberg:“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. By collaborating with the Natural History Museum, we’re able to provide science-based biodiversity metrics that better reflect the broader ecological context in areas where companies operate than other indicators.”
Looking ahead:
Investors can access the data and analytics on ESG Nature <GO> and via Data Licence, more information is available here, allowing them to align with TNFD recommendations, assess nature-related governance, and tap into nature-related opportunities.