Business and financial markets information service provider giant Bloomberg announced today the launch of a new dashboard in its Sustainable Finance Disclosure Regulation (SFDR) solution, aimed at enabling fund managers to track and pick investments aligned with the SFDR’s principal adverse impact reporting requirements.
The EU Sustainable Finance Disclosure Regulation establishes harmonized rules for financial market participants on transparency regarding the integration of sustainability risks and the consideration of adverse sustainability impacts in their processes and the provision of sustainability‐related information with respect to financial products.
One of the regulation’s key requirements, and among the most challenging for asset managers, is for reporting on Principal Adverse Impact (PAI) that investment decisions have on a broad range of sustainability factors, such as climate and environment, as well as social and employee matters, respect for human rights, anti-corruption and anti-bribery aspects.
According to Bloomberg, the new dashboard will enable firms to analyze and track the underlying companies in the funds they are invested in against a peer group of companies and across a range of ESG criteria. The SFDR solution provides PAI coverage combining data aggregated by Bloomberg with data from additional providers, including information on controversial weapons and UNGC violations from ESG Book, and data on civil liberties and political rights from Freedom House.
The company also said that its portfolio and risk analytics solution, PORT, now integrates SFDR data, enabling investors to assess investments and conduct regulatory reporting.
Nadia Humphreys, Business Manager, Sustainable Finance Solutions at Bloomberg, said:
“Bloomberg’s SFDR solution goes beyond supporting firms with reporting, it helps investors manage portfolios with SFDR’s objective in mind, which is to drive investments towards more sustainable companies. We help fund managers cut through the complexity and empower them to conduct precise due diligence on the sustainability of their investments.”