Bloomberg today announced its Sustainable Finance Disclosure Regulation (SFDR) solution has a new dashboard enabling fund managers to seamlessly track and pick investments that align with the key ESG indicators mandated for SFDR reporting, the principal adverse impact indicators or PAIs.
The solution offers complete coverage of mandatory PAIs by combining data aggregated by Bloomberg with data on controversial weapons and UNGC violations from ESG Book, a sustainability data and technology provider, and data on civil liberties and political rights from Freedom House, a non-profit organisation that monitors the health of democracy and freedom worldwide.
Aligning fund composition with SFDR definitions is complex, 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’s SFDR 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 SFDR. This facilitates additional due diligence and confidence in fund classification decisions.
“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. We help fund managers cut through the complexity and empower them to conduct precise due diligence on the sustainability of their investments,” said Nadia Humphreys, Business Manager, Sustainable Finance Solutions at Bloomberg.
To further streamline investment management, Bloomberg’s portfolio and risk analytics solution, PORT, now integrates SFDR data so investors can assess investments, whether ESG-related or not, and conduct regulatory reporting—all in one place.
Bloomberg’s SFDR solution helps clients with the challenging disclosure of PAI indicators by mapping them to company reported ESG data on over 15,000 companies globally. To help firms measure the carbon footprint of portfolio investments, another key SFDR assessment, Bloomberg provides company reported emissions and estimates for Scope 1, 2 and 3 emissions based on a proprietary machine learning smart model as well as an implied-industry model, resulting in coverage of over 100,000 companies.
Building on this coverage, Bloomberg provides fund-level ESG analytics for over 60,000 mutual funds and 10,000 ETFs by combining fund holdings data with Bloomberg’s company-level ESG data. Bloomberg’s Fund ESG Analytics provide objectively comparable ESG metrics and scores, including as reported and estimated greenhouse gas emissions. This enables clients to easily compare funds, gain a view into funds that may meet SFDR criteria, and invest according to their own ESG objectives and preferences, even if funds have no disclosures.
Bloomberg’s SFDR solution is available through the Bloomberg Terminal and to Enterprise Data clients via Data License, and can be accessed through Bloomberg’s ready-to-use data website, data.Bloomberg.com. To view Bloomberg’s new SFDR dashboard, visit ESG SFDR on the Bloomberg Terminal. SFDR and other ESG data fields can be found in PORT, and can be integrated via Microsoft Power BI to support the creation of reports for SFDR, which can be shared across teams or clients.