ESG Regulatory Solutions

ESG Regulatory Solutions

Adapt to evolving sustainability regulations

ESG strategies have long been viewed as a competitive differentiator by investors and are now also becoming a regulatory imperative. Bloomberg experts are actively involved in advisory groups working with policymakers around the world to ensure that regulations are implemented efficiently and achieve their objectives.

Prepare your firm for change with Bloomberg’s ESG data & solutions

Bloomberg provides a wide breadth of regulatory tools that assist in disclosure, reporting and analysis to help navigate developing requirements. Our solutions are continuously updated to meet your ever-evolving regulatory needs

2023

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• First firm-level PAI statement
• Financial firms required to report on Taxonomy eligibility

2024

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• SFDR reporting to include historical comparisons
• Taxonomy reporting on alignment, and eligibility expands to four remaining environmental objectives

2025

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• Non-financial firms report eligibility & alignment on all environmental objectives
• Financial firms can use taxonomy estimates for mandatory Taxonomy KPIs

SOLUTIONS

SFDR

Bloomberg’s Sustainable Finance Disclosures Regulation (SFDR) solution provides coverage of all mandatory Principal Adverse Indicators (PAI) and 75% of the optional indicators. Our solution also provides Enterprise Value including Cash (EVIC) data automating reporting workflows, PAI transparency and analytics on the Bloomberg Terminal, and a SFDR reporting template in Bloomberg PORT, enabling clients to report with confidence.

Principal Adverse Indicators (PAI)

Bloomberg offers accurate data matches for each mandatory PAI, covering 15,500+ companies, as well as carbon data on 130,000+ companies in 140+ countries. This translates to more than one million securities using our corporate structure data.

Enterprise Value Including Cash

Our SFDR data solution accounts for EVIC so clients can streamline PAI measurement and reporting either in their own portfolio management and reporting systems, or within Bloomberg’s analytics tools.

Greenhouse gas estimates

Understanding the carbon footprint of your investment portfolio is a key part of SFDR. Bloomberg fills the gap in reported data by estimating the carbon footprint of 130,000+ companies, many of which do not report their emissions.

SOLUTIONS

EU Taxonomy

The EU Taxonomy is a landmark effort that provides both financial and non-financial firms with a classification system for sustainable activities. It is ambitious and complex; the regulation consists of over 700 pages that specify thousands of technical criteria to assess whether a company’s activities are aligned with one or more environmental objectives, such as climate change mitigation and the protection of biodiversity.

Bloomberg’s best-in-class solution

Bloomberg offers analytics to simplify ESG disclosure and compliance with regulatory requirements, including a data solution that automates the assessment of EU Taxonomy eligibility and alignment. Regulations are complex and can be difficult to navigate. Bloomberg’s premium quality data can help clients comply with confidence.

Data quickly updated

Company-reported taxonomy data is ingested in a timely manner – typically 2-4 days from the date of publication.

Extensive company coverage

We provide reported data for nearly 2,000 companies under NFRD, and estimate the eligibility and alignment of more than 15,000 companies that account for 93% of global market capitalization.

Broad data coverage

Clients rely on a comprehensive set of 230+ data fields to comply with their reporting requirements, including the four remaining environmental objectives that companies will start reporting in January 2024.

Measuring your alignment with EU Taxonomy

Clients can access the data directly on the Bloomberg Terminal or via a subscription to a data license with over 330 fields.

Bloomberg ESG data solutions can be easily integrated into your systems whether you use Bloomberg Data License Plus ESG Manager or a proprietary or third-party data management system.

STEP 1

Identify eligible investments

Understand what percentage of your investment portfolio comes from activities covered by the Taxonomy for all six environmental objectives and quickly interrogate the score for any given company.

STEP 2

Determine substantial contribution to mitigation & adaptation

Confirm that these activities respect and pass the substantial contribution test criteria within the Taxonomy Delegated Acts.

STEP 3

Pass Do No Significant Harm (DNSH) test

Identify material, environmental and social issues and fields, compare yearly disclosures, and conduct peer analysis for companies within specific sectors. Bloomberg has DNSH scores per company, for each environmental objective.

STEP 4

Check for Minimum Social Safeguards

Access social and governance KPIs, including adherence to key social policies and labor rights, on the Terminal as well as Minimum Social Safeguard scores per company based on a set of mandatory or optional requirements.

STEP 5

Calculate alignment

Once these four steps are completed, you will be able to apply your firm’s own internal thresholds and risk appetite to the data or use Bloomberg’s ready made EU Taxonomy alignment values, which use multiple thresholds that cater to varying risk appetites.

Quality Assured EU Taxonomy Solution

Bloomberg’s EU Taxonomy Estimated data has undergone rigorous governance and testing in collaboration with Environmental Liability Solutions Europe Ltd. Environmental Liability Solutions Europe performs independent validation of the data and methodology of EU Taxonomy models.’

SOLUTIONS

CSRD

Bloomberg’s Corporate Sustainability Reporting Directive (CSRD) solution provides support to fulfil disclosure demands, ensuring financial firms remain compliant. To ease the reporting burden, our solution offers data mapping to the CSRD criteria across the extensive E, S and G pillars. This includes carbon targets, GHG emissions, biodiversity and ecosystems, circular economy, human rights policies, social supply chain and business ethics policies data to name a few. Integrating required metrics into existing portfolio analytics tool, this solution will allow users to apply and aggregate CSRD data points across all their exposures seamlessly. Bloomberg will also capture and provide additional reported metrics which are newly introduced to the market by CSRD, applying its robust data procurement and governance processes. Bloomberg’s CSRD solution will help you answer analytical questions to understand your exposure and reporting performance.

Easy access and integration with your data management system

Clients can access the data directly on the Bloomberg Terminal or via a subscription to a data license with over 330 fields.

Bloomberg ESG data solutions can be easily integrated into your systems whether you use Bloomberg Data License Plus ESG Manager or a proprietary or third-party data management system.