• Bloomberg enhances tools to help firms assess climate transition risks and align with net zero targets.
• New features include revenue risk projections, carbon target indicators, and transition credibility scores.
• Over 8,000 companies now have active carbon targets, with Bloomberg offering granular data to track their progress.

Bloomberg has announced significant upgrades to its climate solutions suite, aimed at helping investors evaluate companies’ carbon emissions goals and transition risks more accurately. The enhanced tools offer detailed assessments of how companies’ revenues may be impacted under various climate transition scenarios, based on data from BloombergNEF (BNEF).

Key questions addressed by the updated suite include:

• Are companies setting credible carbon targets, and are they on track to meet them?
• How can future greenhouse gas emissions be forecasted based on current commitments?
• What impact will transition scenarios, like BNEF’s New Energy Outlook (NEO), have on revenues?

Transition Risk Assessments Enhanced

For the first time, BNEF’s Transition Risk Assessment Company Tool (TRACT) is available on the Bloomberg Terminal. TRACT projects revenue risk for over 70,000 companies by analyzing supply chain exposure and regional footprints across different climate scenarios. “At BNEF, we developed the TRACT model to provide clients with a granular approach to transition risk assessments,” said Alexandra Toft, Chief Operating Officer at BloombergNEF.

Carbon Target Indicators and Credibility

With over 140 trillion USD pledged to net zero emissions by 2050, Bloomberg’s new data suite offers tools to measure progress and assess the credibility of corporate transition plans. The suite includes carbon target indicators covering 24,000 companies, with 8,000 actively working toward their targets.

Edo Schets, Head of Climate Finance Solutions at Bloomberg, highlighted: “Our expanded suite of net zero solutions equips investors with valuable data that enables them to assess how companies are decarbonizing.“

Related Article: Climate Asset Management and Apple’s Restore Fund Secure Over $1 Billion for Natural Capital Projects to Restore Global Landscapes

Comprehensive ESG Tools

Bloomberg’s ESG data suite is recognized as a leader in transition risk analytics. Investors can access a wide array of data, including carbon emission forecasts and sustainable debt indices, through the Bloomberg Terminal or Data License.

Bloomberg’s enhancements empower firms to align with the low-carbon economy while making informed investment strategies.