Bloomberg has enhanced its climate solutions with advanced analytics designed to help financial institutions evaluate how companies and portfolios might perform as low-carbon technologies grow.
The new tools enable investors to identify prospects, assess risks, and align their portfolios with net-zero objectives, according to Bloomberg.
Traditional transition risk models have mainly focused on carbon pricing, such as taxes or emissions fees. Bloomberg’s expanded approach combines carbon analytics with detailed assessments of company exposure to market, technological, and policy shifts.
Bloomberg states, "The analytics provide insight into revenue and capital expenditure linked to clean energy and fossil fuels, evaluate the credibility of corporate transition plans, and test revenue sensitivity under different climate scenarios."
The dataset includes companies representing 96% of global market capitalization, enhancing Bloomberg’s existing tools like transition revenue-at-risk, carbon forecasts, and transition credibility scores.
Author’s summary: Bloomberg’s expanded climate analytics offer deeper insights for investors to navigate the low-carbon transition by integrating carbon data with comprehensive company assessments under various climate scenarios.