About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Bloomberg Employs ML and Industry-Implied Models to Increase Carbon Emissions Data

Subscribe to our newsletter

Bloomberg has increased its carbon emissions dataset to cover 100,000 companies. The dataset consists of company reported carbon data and estimates based on either a machine learning smart model or Bloomberg’s newly developed industry-implied model accompanied by a Partnership for Carbon Accounting Financials (PCAF) reliability score.

“Greater precision in Scope 1, 2 and 3 carbon emissions data will enable asset managers and banks to measure the extent of climate change risk within their investment and lending portfolios, and across their operations as a whole,” says Brad Foster, head of enterprise data content at Bloomberg. “To date, limited and inconsistent corporate disclosure of these emissions has posed a challenge. Our expansion of this dataset will help to address these gaps so clients have actionable information to identify climate related opportunities and risks.”

When company reported carbon emissions data is not available, Bloomberg applies estimation techniques guided by a waterfall principle to increase the scope of companies covered and provide a more complete picture of emissions. The first estimation technique uses Bloomberg’s ML based smart model incorporating 800+ data points to estimate Scope 1 and 2 emissions with historical data going back to 2010. Last year, Bloomberg also released Scope 3 estimates for Oil and Gas, Metals and Mining, and Services industries using a methodology combining a bottom-up model with a top-down ML model.

When there is not enough data available to apply these ML models, the waterfall technique automatically reverts to Bloomberg’s new industry-implied model. This method uses peer emissions and sales data to estimate a company’s emissions. These estimates are accompanied by a reliability score based on the scale proposed by the PCAF so investors can understand the quality of an underlying datapoint.

Bloomberg’s carbon emissions data is available via the Bloomberg Terminal. A subset of the data is also available to Bloomberg Data License clients and can be accessed via the company’s data website, data.bloomberg.com

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Approaches to ESG data for the Sustainable Finance Disclosure Regulation (SFDR)

The EU Sustainable Finance Disclosure Regulation (SFDR) outlines extensive rules designed to ensure transparency across sustainable financial markets. It also demands huge volumes of non-financial ESG data to be sourced, managed and governed, some of which is difficult to find, and much of which is unstructured and of variable quality. The data challenge is exacerbated...

BLOG

Business Identity in the Digital Economy: A Global Problem Needs a Global Solution

By Stephan Wolf, CEO of the Global LEI Foundation. Businesses today face significant pressure to go digital. Government and private sector organisations around the world are racing to digitise processes, products, and services – even national currencies – to remove friction, save money, streamline operations, and improve user experiences. Despite the tremendous benefits it delivers,...

EVENT

RegTech Summit APAC

Now in its 2nd year, the RegTech Summit APAC will bring together the regtech ecosystem to explore how capital markets in the APAC region can leverage technology to drive innovation, cut costs and support regulatory change. With more opportunities than ever before for RegTech to add value, now is the time to invest for the future. Join us to hear from leading RegTech practitioners and innovators who will share insights into how they are tackling the challenges of adopting and implementing regtech and how to advance your RegTech strategy.

GUIDE

Regulatory Data Handbook 2022/2023 – Tenth Edition

Welcome to the tenth edition of A-Team Group’s Regulatory Data Handbook, a publication that has tracked new regulations, amendments, implementation and data management requirements as regulatory change has impacted global capital markets participants over the past 10 years. This edition of the handbook includes new regulations and highlights some of the major regulatory interventions challenging...