With the help of this project, investors will be able to assess whether firms are on pace to fulfill their carbon emission objectives, how credible these targets are, and how different climate transition scenarios can affect their income.

Bloomberg's suite of climate solutions is being improved in order to give investors a more comprehensive and prospective understanding of transition risks. Using detailed data from BloombergNEF (BNEF), these improvements include new tools to evaluate potential revenue risks and opportunities in the future that alternative climate pathways may bring.

Delivering data-driven insights and analytics to financial professionals globally is Bloomberg's primary mission. Their thorough approach to climate risk assessments, which are now strengthened by the extended suite, is an excellent example of this.

With the aid of features included in the recently improved offering, investors may better match their portfolios with their declared net zero goals. This is made possible by a package of tools that enable the assessment of potential income changes for businesses under various transition scenarios as predicted by BNEF's New Energy Outlook.

The Transition Risk Assessment Company Tool (TRACT), which is now accessible for the first time on the Bloomberg Terminal and through Data License, is one of the suite's other improvements. With the use of estimates of demand changes under various climate scenarios, TRACT integrates the business activities, supply chain exposures, and regional footprints of over 70,000 enterprises to help them project revenue risks and possibilities.

The Net Zero data suite has been expanded, which is another noteworthy improvement. This suite aids financial businesses in assessing the legitimacy of enterprises' transition plans. With Data License, this suite is now available for scalable enterprise-wide use, proving Bloomberg's dedication to facilitating thorough transition risk assessments.

Less than 25% of emissions worldwide are subject to a real carbon price plan. The shift is driven by technological rivalry within sectors and regions, which frequently makes carbon intensity unimportant (e.g., in industries like steelmaking or aviation where alternatives are nonexistent). Alexandra Toft, Chief Operating Officer of BloombergNEF, stated, "We at BNEF developed the TRACT model to fill this gap and provide clients with a granular approach to transition risk assessments."