Bloomberg has introduced a new dashboard enabling fund managers to track and pick investments that align with the key ESG indicators mandated for SFDR reporting.
The solution offers coverage of mandatory principal adverse impacts (PAIs) by combining data aggregated by Bloomberg with data on United Nations Global Compact (UNGC) violations from ESG Book, a sustainability data and technology provider.
The dashboard enables firms to analyse and track underlying companies in each fund they are invested in against a peer group of companies and across a range of ESG criteria, including principles of good governance defined in the Sustainable Finance Disclosure Regulation (SFDR).
Aligning fund composition with SFDR definitions is complex, says Bloomberg, as firms need to demonstrate to clients and regulators how they achieve Article 8 and 9 fund classifications, as well as disclose how they account for sustainability risks in their investment decisions.
Bloomberg also provides company reported emissions and estimates for Scope 1, 2 and 3 emissions based on a proprietary machine learning smart model.
Building on this coverage, Bloomberg provides fund-level ESG analytics for more than 60,000 mutual funds and 10,000 exchange-traded funds by combining fund holdings data with Bloomberg’s ESG data.
Bloomberg’s SFDR solution is available through the Bloomberg Terminal and to enterprise data clients via its Data License platform.
Nadia Humphreys, business manager for sustainable finance solutions at Bloomberg, says:
“Bloomberg’s SFDR solution goes beyond supporting firms with reporting, it helps investors manage portfolios with SFDR’s objective in mind, which is to drive investments towards more sustainable companies.”
