Bloomberg Launches Solution to Help Investors Assess Their Exposure to Nature and Biodiversity-Related Risks

Originally published on bloomberg.com

Unveiled on the eve of Nature COP 16, the tool provides investors with actionable insights to understand and manage their dependency on nature and the impact of their investments 

The tool combines Bloomberg’s best in class data with leading sources of nature and biodiversity data

Bloomberg announced today the launch of data and analytics designed to offer investors a comprehensive assessment of nature-related impacts and dependencies across a company and its value chain, for up to 45,000 companies.

Among its most distinctive features, the offering is powered by a broad set of company-reported Bloomberg data with full transparency to source, and features biodiversity indicators underpinned by the Natural History Museum’s Biodiversity Intactness Index (BII), water stress analysis using World Resources Institute data, deforestation risk analysis, as well as detailed insights on actions companies are taking to reduce nature loss. Furthermore, Bloomberg’s ESG financial materiality scores now factor in biodiversity and natural capital data reported by companies, for sectors where this is relevant.

Almost $1 trillion of annual financing will be needed by 2030 to sustainably manage biodiversity and maintain the integrity of ecosystems, according to analysis from research provider BloombergNEF. This pales in comparison to the anticipated economic cost of biodiversity loss, which the World Bank estimates could result in a decline in global GDP of $2.7 trillion annually by 2030.

Available on the Bloomberg Terminal and via Data License, the new offering combines Bloomberg’s trusted datasets on company revenue segmentation, supply chains and asset locations with nature and biodiversity-related geospatial data. The insights provided include: percentage of company revenue in high nature-risk sectors, involvement in commodities associated with deforestation, percentage of assets in pristine areas, exposure to areas with water stress, and management of nature-related risks such as governance and policies, sustainable sourcing of natural commodities, as well as pollution, waste and water management practices.

Christian O’Dwyer, Nature Solutions Product Manager at Bloomberg said: “The dependency of societies and economies on nature is widely recognized, but evaluating the nature-related risks of companies is complex and can not be reduced to a single metric. With Bloomberg’s new offering, users get a comprehensive assessment of all aspects of a company’s dependency and impact on nature, which can be integrated into decision-making through both Bloomberg Terminal and Enterprise Data Solutions. By collaborating with the Natural History Museum, we’re able to provide science-based biodiversity metrics that better reflect the broader ecological context in areas where companies operate than other indicators.”

The offering helps investors assess their exposure to nature-related risks, make nature-aware investment decisions and align reporting with the recommendations of the Taskforce on Nature-related Financial Disclosures, by answering the following questions:

• Is nature and biodiversity financially material to a company and its value chain?
• How exposed is the company to areas of high risk to ecosystem health or high water stress?
• Does the company have appropriate nature-related governance structures and is it taking action on drivers of nature loss?
• Could the company benefit from nature-related opportunities?

The analysis of biodiversity-related risks relies on a combination of the Natural History Museum’s Biodiversity Intactness Index (BII) with Bloomberg’s physical assets data. The BII is a science-based metric which maps the world’s landmass and provides an estimated percentage of the natural biodiversity still present in any given area, using data on over 60,000 unique species in combination with measures of human pressures on nature and statistical modeling approaches.

The data and analytics are available on ESG Nature <GO> and via Data Licence, more information is available here. 

Clients can readily access ESG data on the Bloomberg Terminal via {ESGD <GO>} or across their enterprise via Data License at data.Bloomberg.com for use in proprietary or third-party applications in their cloud environment of choice. Through Data License Plus (DL+) ESG Manager, Bloomberg connects customers’ ESG data workflows to the full power of Bloomberg’s datasets as well as data from vendor partners, so clients can unlock maximum value with ease. For more information, visit Bloomberg Sustainable Finance Solutions.[2]

Media Contact 
Anna Schoeffler, +33 6 75 54 70 92, [email protected]

About Bloomberg 
Bloomberg is a global leader in business and financial information, delivering trusted data, news, and insights that bring transparency, efficiency, and fairness to markets. The company helps connect influential communities across the global financial ecosystem via reliable technology solutions that enable our customers to make more informed decisions and foster better collaboration. For more information, visit Bloomberg.com/company or request a demo.

About The Natural History Museum 
The Natural History Museum is a world-leading science centre and one of the most visited attractions in the UK. A global source of curiosity, inspiration and joy. Our vision is to build a future in which both people and the planet thrive. We aim to be a catalyst for change, engaging advocates for the planet in everything that we do. Our 350 scientists are finding solutions to the planetary emergency in all aspects of life. Visit, join and support the Natural History Museum today. Protecting the planet. It’s in our nature.