Bloomberg Launches New Solution to Help Investors Assess Portfolio Climate Risks and Opportunities – ESG Today

Enterprise and monetary markets info service supplier Bloomberg introduced the launch of MARS Local weather, a brand new resolution aimed toward enabling buy-side and sell-side monetary companies to quantify and handle local weather dangers and alternatives throughout portfolios. The brand new resolution kinds a part of Bloomberg’s Multi-Asset Threat Administration (MARS) suite.

Based on Bloomberg, the launch of the brand new resolution comes to assist buyers deal with rising calls for by regulators and central banks to evaluate their publicity to local weather dangers, pushed by rising proof of the financial impacts of local weather change. A research by Swiss Re cited by Bloomberg estimates that financial damages attributable to pure catastrophes have doubled in actual phrases over the previous 20 years, reaching $280 billion globally in 2023.

Bloomberg stated that its MARS Local weather module will assist customers analyze varied local weather eventualities primarily based on totally different built-in evaluation fashions, according to the framework set forth by the Community for Greening Monetary System (NGFS), with the answer powered by BloombergNEF’s Transition Threat Evaluation Firm Device (TRACT), which initiatives firm income danger and alternatives, combining firms’ actions, provide chain publicity and regional footprint beneath totally different NGFS local weather eventualities. Customers of the brand new resolution will initially be supplied with a report assessing the monetary impression of climate-related danger all the way down to safety stage, break up out by bodily acute, bodily power and transition danger.

Dharrini Bala Gadiyaram, International Head of Threat Product at Bloomberg stated:

“Portfolio and danger managers more and more look to carry out local weather danger evaluation alongside different monetary danger assessments to handle danger and regulatory reporting. As we proceed to broaden our local weather danger options throughout Bloomberg, the newest addition to our extensively used danger administration providing, MARS Local weather, will allow customers to evaluate portfolio vulnerabilities and alternatives associated to local weather change.”