Bloomberg, a leading provider of business and financial market information, has announced the launch of a suite of new tools designed to enable investors to evaluate company and portfolio exposure to low carbon transition risks and opportunities. This move comes as investors increasingly seek to understand how business models and investment returns are affected by significant shifts in transition-related capital, highlighted by a surge in global investment in low-carbon technologies, projected to exceed $2 trillion in 2024, up from $160 billion in 2009. Additionally, investment in new renewable energy projects has seen double-digit growth, reaching over $380 billion in the first half of this year.
Bloomberg’s enhanced climate solutions suite is intended to help investors comprehend and compare company exposure to transition risks and opportunities, assess low carbon investments, and evaluate the credibility of transition plans. The tools also allow for revenue sensitivity analysis across various climate scenarios and time horizons, measuring revenue risk effectively.
The new offerings include a transition exposure revenues dataset, which helps identify the extent of revenue exposure in over 100,000 companies across 23 different clean energy and fossil-fuel activities. Furthermore, the transition capex data captures reported capital investments in low-carbon technologies across sectors such as energy, industry, transport, and infrastructure, providing a forward-looking perspective on corporate climate strategies.
Additionally, Bloomberg has introduced a Company Transition Capex Tool, enabling users to delve deeper into power generation activities using detailed asset and financing-deal level data. This tool is particularly useful for analysing private companies, based on nearly 70,000 transactions involving over 23,000 corporate entities.
Jessica Bennett, Head of Transition Analytics at Bloomberg, commented on the development: “Bloomberg’s enhanced transition offering provides deeper insights into how companies are exposed and adapting to the rise of low-carbon technologies. As this trend continues to evolve, we are committed to providing the analytics investors need to identify leaders and laggards, unlock value, and mitigate risks.”
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