Bloomberg has expanded its climate solutions suite to offer an in-depth view of transition risk, including forward-looking assessments of revenue risks and opportunities under different climate pathways. Based on data from BloombergNEF, the Transition Risk Assessment Company Tool (TRACT) projects company revenue risk and opportunities for more than 70,000 companies, combining companies’ activities, supply-chain exposure and regional footprint with shifting demand for products and commodities projected under different climate scenarios. The suite aims to assist investors in assessing whether companies are on track to meet carbon emissions targets, evaluating the credibility of those targets and estimating how their revenues will be impacted under a range of transition scenarios – with the overall view to align their portfolio with net zero goals. TRACT contains data on policies, project pipeline, technology costs and bottom-up consumer adoption trends for 20 regions, with Network for Greening the Financial System scenarios set to be incorporated by the end of this month. “Our expanded suite of net zero solutions equips investors with valuable data that enables them to assess how companies are decarbonising,” said Edo Schets, Head of Climate Finance Solutions at Bloomberg. “Whether focused on portfolio alignment or identifying transition opportunities, investors now have the insights they need to set more informed long-term investment strategies.” Bloomberg’s tool enhancement release follows that of S&P Global Ratings’ Analytical Approach for Climate Transition Assessments back in July, which outlined the firm’s expectations of entities on aligning with a low-carbon and climate-resilient future.
