Fri, Oct 18 2024

Bloomberg Introduces Nature Risk Assessment Tool for Global Investors

October 17, 2024
2 Min Reads

Bloomberg has introduced a tool that can evaluate up to 45,000 firms and provide investors a thorough understanding of the interconnections and effects of nature on a company's value chain.

With the help of this new product, investors will be able to assess the financial materiality of biodiversity and nature in business operations. This launch coincides with a crucial period: by 2030, over $1 trillion in yearly funding will be needed to manage biodiversity sustainably and preserve ecological integrity.

 

Renowned for providing strong data and analytical solutions, Bloomberg mainly serves the financial markets. For investors who want accurate and dependable financial data to make well-informed decisions, their products are essential.

 

With the integration of biodiversity indicators from the Biodiversity Intactness Index (BII) of the Natural History Museum and data from Bloomberg's vast databases, the recently launched solution provides comprehensive analytics on hazards associated to nature. Assessments of water stress, the dangers of deforestation, and information on business initiatives to stop the loss of natural resources are also included.

 

This product will be accessible through Data License and the Bloomberg Terminal. It makes use of geographical data on nature and biodiversity along with corporate revenue segmentation, supply chain, and asset location data. The share of a company's income from high-risk natural sectors, its engagement in commodities connected to deforestation, and its exposure to areas with few water resources are important insights.

 

Alignment with the recommendations of the Taskforce on Nature-related Financial Disclosures is one of the product's additional features. This allows investors to make investments that consider the environment and to match their reporting with international standards for nature risk disclosure.

 

"The dependency of societies and economies on nature is widely recognized, but evaluating the nature-related risks of companies is complex and cannot be reduced to a single metric," stated Christian O'Dwyer, Product Manager for Nature Solutions at Bloomberg.

 

Bloomberg's latest service provides customers with an all-encompassing evaluation of a company's environmental effect and dependence, which can be incorporated into decision-making processes via Bloomberg Terminal and Enterprise Data Solutions. We are able to offer science-based biodiversity measurements that more accurately represent the larger ecological environment in regions where businesses operate than other indicators because to our partnership with the Natural History Museum.

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