Bloomberg launches ESG screening tool for investors

Rick Steves

“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.”

Bloomberg has launched a screening tool that helps users assess portfolios, funds, and indices based on sustainability criteria and customized thresholds.

Available on Bloomberg Terminal, the tool can be used both for making investment decisions and to help clients with regulatory compliance.

How to use Bloomberg’s ESG screening tool

Bloomberg said the new tool provides an easy and transparent way for investors to understand to what extent a portfolio, fund, or index meets their expectations and sustainability criteria predetermined by them.

Investors can input their investment preferences by selecting from a wide range of criteria and calibrating precise thresholds for the three following categories: sustainability targets, exclusion or “no harm” criteria, and good governance requirements.

The solution then calculates a percentage figure that reveals how much of the portfolio, fund, or index is aligned with the user’s criteria, and provides a detailed list view of all holdings to quickly detect any outliers.

Investors can also use it to check if funds align with regulatory obligations, including the EU’s MiFID II suitability rules and Sustainable Finance Disclosure Regulation (SFDR), the United Arab Emirates’ new sustainable finance framework, the UK FCA’s forthcoming sustainability disclosure requirements, and future SEC guidance on ESG disclosures and fund labeling.

Additionally, investors can leverage the solution to assess whether a fund meets classification under the SFDR framework, and the percentage of sustainable investment reported by the fund itself.

“Sustainability objectives vary from investor to investor”

Patricia Torres, Global Head of Sustainable Finance Solutions at Bloomberg, said: “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. This new Bloomberg tool provides clarity and empowers the user to customize sustainable investment criteria to determine if portfolios, funds, or indices meet their requirements with confidence. Based on Bloomberg’s extensive range of company ESG data, proprietary metrics and scores, the tool enables investors to assess investments in a comparable and scalable way.”

Bloomberg streamlines the screening process for Article 8 and 9 funds by providing access to SFDR fund-reported data for 26,000 funds captured within the European ESG Template (EET), covering more than 345 data points including a fund’s minimum EU Taxonomy alignment.

Bloomberg’s Sustainable Finance Data License offering provides enterprise-wide access to the underlying data feeding this new tool, for investors to use in their sustainable investment construction. Via Data License, clients can access a company’s potential Sustainable Development Goal (SDG) impact and SFDR Principal Adverse Impact sector percentile performance, alongside both positive and negative revenue-based screening.

Read this next


Exclusive: Autochartist CEO Ilan Azbel Delivers Insight on AI at iFX EXPO LATAM 2024

In an insightful interview with FinanceFeeds at iFX EXPO LATAM 2024, Ilan Azbel, CEO of Autochartist, discussed the evolution of trading technology, effective trader engagement strategies, the integration of AI in trading analytics, and the cautious approach of regulated brokers towards its adoption.

Market News

Weekly data: Oil and Gold: Price review for the week ahead.

This preview of weekly data looks at USOIL and XAUUSD where economic data coming up later this week are the main market drivers for the near short-term outlook.

Crypto Insider

Octa’s insights: the approval of spot Ethereum ETFs is not going as planned.

The approval of spot Bitcoin exchange-traded funds (ETF) by the U.S. Securities and Exchange Commission (SEC) in January 2024 triggered a substantial rise in the bitcoin price. Also, interest in the proposed spot Ethereum ETF has increased

Industry News

Bursa Malaysia introduces Trading Reminders

The Trading Reminder flag aims to alert investors to exercise caution when encountering a stock displaying persistent unusual price and/or volume movements after the listed company’s UMA response.

Industry News

21 Republican representatives want to “End the Fed”

“Americans are suffering under crippling inflation, and the Federal Reserve is to blame.”

Retail FX

Scope Markets launches unleveraged trading

“Whilst our traditional contract for difference (CFD) products continue to prove incredibly popular, the Invest account is unleveraged and only allows ‘long’ positions to be taken, a combination that significantly reduces the risk of capital losses.”


Unlocking Profit Potential: Earn Returns with DecodeEX Experience Bonus!

DecodeEX, the innovative brokerage subsidiary of Decode Global, announced its experience bonus campaign, offering every user the opportunity to maximize their strategic trading potential with up to $10,000 in experience bonus. 

Market News

Pretiorates’ Thoughts 28 – Precious metals and base metals out of control

Ten days ago we mentioned in Pretiorates’ Thoughts 26: Chapter 2 should start with Precious Metals.

Retail FX

Webull launches discount brokerage in Malaysia

“Making investing more inclusive and accessible to all, Webull Malaysia brings best-in-class tools and information to empower investors of all levels with knowledge and skills to help them make better investment decisions and achieve their investment goals.”