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Bloomberg Launches Customizable and Transparent Sustainable Investment Screening Tool for Investors

Bloomberg Launches Customizable and Transparent Sustainable Investment Screening Tool for Investors


Bloomberg has introduced a new tool designed to aid investors in evaluating portfolios, funds, and indices based on personalized sustainability criteria and thresholds. This tool, accessible on the Bloomberg Terminal, simplifies the screening process transparently and serves both investment decision-making and regulatory compliance purposes.

As sustainable investment strategies continue to diversify, investors seek straightforward and dependable methods to gauge if investment products align with specific sustainability criteria. Simultaneously, global regulators are increasingly establishing benchmarks for companies to attain sustainability status, necessitating investors to assess whether their investments meet these standards. Bloomberg’s latest tool offers investors a transparent and user-friendly means to determine the extent to which a portfolio, fund, or index adheres to their pre-established sustainability criteria and expectations.

According to Patricia Torres, Global Head of Sustainable Finance Solutions at Bloomberg, “Sustainability objectives vary from investor to investor, and from product to product. It can be difficult to fully understand whether a portfolio, fund or index meets your own definition of a sustainable investment.” Torres further adds that the new Bloomberg tool provides clarity and empowers users to customize sustainable investment criteria confidently, leveraging Bloomberg’s extensive company ESG data, proprietary metrics, and scores to assess investments comparably and scalably.

The screening process is entirely customizable, with users inputting their investment preferences and setting precise thresholds for sustainability targets, exclusion criteria, and good governance requirements. The solution then generates a percentage figure indicating the alignment of the portfolio, fund, or index with the user’s criteria, along with a detailed list view of holdings to identify any outliers efficiently.

In addition to its utility for investment purposes, the tool serves as a means for investors to verify if funds comply with regulatory obligations, such as the EU’s MiFID II suitability rules and Sustainable Finance Disclosure Regulation (SFDR), the United Arab Emirates’ sustainable finance framework, forthcoming sustainability disclosure requirements from the UK FCA, and anticipated SEC guidance on ESG disclosures and fund labeling.

Moreover, investors can leverage the tool to assess whether a fund meets classification under the SFDR framework and the reported percentage of sustainable investment. Bloomberg streamlines this process by granting access to SFDR fund-reported data for over 26,000 funds captured within the European ESG Template (EET), covering more than 345 data points, including a fund’s minimum EU Taxonomy alignment.

The new screening tool comes after another recent announcement from Bloomberg related to the first electronic list trade in European Government Bonds being executed on Bloomberg’s Multilateral Trading Facility (MTF).

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