Bloomberg has released a tool that helps investors assess portfolios, funds and indices based on sustainability criteria and thresholds customised by the user. Available on the Bloomberg Terminal and based on the company’s ESG data, the solution facilitates a transparent screening process and can be used for both making investment decisions and to help clients with regulatory compliance.
Users can input their investment preferences by selecting from a wide range of criteria and calibrating precise thresholds from three categories: sustainability targets, exclusion or ‘no harm’ criteria, and good governance requirements. The tool then calculates a percentage figure that shows how much of a portfolio, fund or index is aligned with the user’s criteria and provides a detailed list of all holdings to quickly detect any outliers.
Investors can also use the tool to check, based on their own definitions, if funds align with regulatory obligations including the EU’s MiFID II suitability rules and Sustainable Finance Disclosure Regulation (SFDR), the United Arab Emirates’ sustainable finance framework, the UK FCA’s forthcoming sustainability disclosure requirements, and future SEC guidance on ESG disclosures and fund labelling.
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