{"id":119293,"date":"2024-09-19T09:43:08","date_gmt":"2024-09-19T13:43:08","guid":{"rendered":"https:\/\/www.bloomberg.com\/professional\/insights\/press-announcement\/bloomberg-expands-climate-solutions-to-enhance-corporate-transition-risk-assessments-and-help-firms-align-portfolios-with-their-net-zero-targets\/"},"modified":"2025-06-27T10:15:41","modified_gmt":"2025-06-27T14:15:41","slug":"bloomberg-expands-climate-solutions-to-enhance-corporate-transition-risk-assessments-and-help-firms-align-portfolios-with-their-net-zero-targets","status":"publish","type":[3815],"link":"https:\/\/www.bloomberg.com\/professional\/insights\/press-announcement\/bloomberg-expands-climate-solutions-to-enhance-corporate-transition-risk-assessments-and-help-firms-align-portfolios-with-their-net-zero-targets\/","title":{"rendered":"Bloomberg Expands Climate Solutions to Enhance Corporate Transition Risk Assessments and Help Firms Align Portfolios with Their Net Zero Targets"},"content":{"rendered":"
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PRESS ANNOUNCEMENT<\/span><\/strong><\/p>\n\n<\/div>\n\n<\/div>

Bloomberg Expands Climate Solutions to Enhance Corporate Transition Risk Assessments and Help Firms Align Portfolios with Their Net Zero Targets<\/h1>\n<\/p>\n\n<\/div>\n \n<\/div>\n\n\n <\/div>\n <\/section>\n<\/div>\n\n
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September 19, 2024<\/p>\n<\/p>\n\n<\/div>\n

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Bloomberg today announced significant enhancements to its climate solutions suite, designed to help investors assess if companies are on track to meet carbon emissions targets, evaluate the credibility of those targets and estimate how their revenues will be impacted under various transition scenarios.<\/p>\n

The expanded offering provides a more comprehensive view of transition risk, including forward-looking assessments of revenue risks and opportunities under different climate pathways, based on detailed data from BloombergNEF (BNEF). The suite enables investors to assess transition credibility and identify leaders and laggards, by addressing four critical questions:<\/p>\n

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  1. Are companies setting carbon targets, and are they on track to achieve them?<\/li>\n
  2. How credible are these targets based on companies\u2019 current actions?<\/li>\n
  3. What future GHG emissions can be expected based on companies\u2019 carbon commitments?<\/li>\n
  4. How could transition scenarios, like BNEF\u2019s New Energy Outlook (NEO), affect company revenues?<\/li>\n<\/ol>\n

    These insights empower investors to align their portfolios with their individually stated net zero goals and capitalize on opportunities presented by the transition to a low-carbon economy.<\/p>\n

    Making more tangible transition risk assessments<\/strong><\/p>\n

    BNEF\u2019s model helping finance professionals assess tangible, bottom-up transition risk in their portfolios is now available on the Bloomberg Terminal and via Data License for the first time. The Transition Risk Assessment Company Tool<\/em> (TRACT) projects company revenue risk and opportunities for more than 70,000 companies. The model combines companies\u2019 activities, supply chain exposure and regional footprint with the shifting demand for products and commodities projected under different climate scenarios. TRACT benefits from granular transition scenario data: BNEF\u2019s New Energy Outlook<\/em> (NEO, link<\/a>) captures policies, project pipeline, technology costs and consumer adoption trends bottom-up for 20 regions. By the end of September 2024, TRACT will also incorporate the NGFS scenarios.<\/p>\n

    \u201cLess than a quarter of global emissions fall under an actual carbon pricing scheme. Sector and region-specific technology competition drives the transition, often rendering carbon intensity irrelevant, such as in sectors where no alternatives exist, like steelmaking or aviation. At BNEF we developed the TRACT model to fill this gap and provide clients with a granular approach to transition risk assessments\u201d, said Alexandra Toft, Chief Operating Officer at BloombergNEF<\/strong>.<\/p>\n

    Assessing carbon targets and transition credibility<\/strong><\/p>\n

    In addition to managing transition risk, financial firms increasingly seek to decarbonize their portfolios. Hundreds of asset owners, asset managers and banks representing over 140 trillion USD in total have individually pledged their support for investing aligned to net zero emissions by 2050 or sooner. Bloomberg\u2019s expanded Net Zero data suite provides the tools to help firms measure progress and evaluate the credibility of companies\u2019 transition plans. Firms who want to source this data to feed into their own transition risk assessment processes can access it via Data License <\/a>for scalable enterprise-wide use.<\/p>\n

    Key features include:<\/p>\n