Bloomberg’s New Offerings Reflect Investors’ Growing Demand For ESG Data

Bloomberg’s New Offerings Reflect Investors’ Growing Demand For ESG Data

In June 2024, Bloomberg made two announcements signalling a strong commitment to helping investors integrate sustainability into their decision-making. First, it announced a data product that will collect, aggregate and streamline information that firms have started to report under the EU’s Corporate Sustainability Reporting Directive (CSRD). This offering is based on a mapping of the European Sustainability Reporting Standards (ESRS) to existing Bloomberg data fields, and will include certain historical data reported by firms; additional fields will be created to ensure that disclosures cover both financial and impact materiality. Organizations that are required to conduct CSRD reporting in 2025 are included in Bloomberg’s coverage, which will expand and include firms that conduct CSRD reporting in 2026.

Secondly, Bloomberg announced two new tools within its PORT and PORT Enterprise offerings to help investors measure, manage and report the sustainability characteristics of their investment portfolios. PORT and PORT Enterprise incorporate Bloomberg’s ESG data sets, including key indicators mandated under the EU Sustainable Finance Disclosure Regulation (SFDR), GHG emissions, and Bloomberg’s proprietary ESG scores. It has added a new dedicated ESG screen in PORT – allowing users to compare portfolios, funds and indices using granular sustainability data – and has expanded the reporting capabilities of PORT Enterprise to include a SFDR report per the European Securities and Markets Authority’s (ESMA’s) template, as well as other customizable sustainability reports.

Both Bloomberg’s new CSRD data product and its portfolio management and reporting tools aim to meet the increasing demand from investors to integrate sustainability data into their investment decisions. Verdantix research finds that these demands are driven by regulations such as the SFDR, a growing emphasis on data transparency, and the increasing recognition that ESG data can be leveraged to create long-term value. Investors’ commitment to sustainability can be seen by significant increases in the participation in investor-based networks, such as the UN’s Principles for Responsible Investment (PRI) – which has over 5,300 signatories – and the ESG Data Convergence Initiative (EDCI) – which has over 450 members.

Bloomberg continues to invest and add solutions specifically geared to meet the ESG data management and reporting needs of investors. Software vendors with solutions targeting the investor space come from a variety of backgrounds, including those with EHS and ESG offerings, as well as others with a history of working in the financial services market – such as Apex Group, Nasdaq and S&P Global. What differentiates Bloomberg is how it combines its sustainability data coverage with its financed emissions management capabilities. For example, Bloomberg maintains data on 130,000 firms’ Scope 1 and 2 emissions and 58,000 firms’ Scope 3 emissions, has ESG scores for 15,000 firms and 70,000 funds, maintains extensive firm-reported data, and can integrate investors’ emissions data into their investment decisions to help them meet their net zero targets. As investors continue to demand more sustainability data, expect Bloomberg and other vendors to expand their data coverage too.

For more information on this space, see Verdantix Smart Innovators: ESG Reporting And Data Management Software For Investors and Verdantix Smart Innovators: Net Zero Financial Data And Analytics Providers.