Bloomberg has announced the launch of a tool that helps investors assess portfolios, funds and indices based on user-defined sustainability criteria.

Available on the Bloomberg Terminal, the product allows investors to use customized screening to make investment decisions based on criteria and thresholds for three categories: sustainability targets, exclusion or “no harm” criteria, and good governance requirements. The tool then calculates a percentage figure that reveals how much of the portfolio, fund or index is aligned with the user’s criteria, and provides a detailed list view of all holdings to quickly detect any outliers.

Investors can also use it to check if funds align with regulatory obligations, including the EU’s MiFID II suitability rules and Sustainable Finance Disclosure Regulation (SFDR), the United Arab Emirates’ new sustainable finance framework, the UK FCA’s forthcoming sustainability disclosure requirements, and future SEC guidance on ESG disclosures and fund labelling.

The solution could also be used by investors to help assess whether a fund meets classification under the SFDR framework, and the percentage of sustainable investment reported by the fund itself.

Patricia Torres, Global Head of Sustainable Finance Solutions at Bloomberg, said, “Sustainability objectives vary from investor to investor, and from product to product. It can be difficult to fully understand whether a portfolio, fund or index meets your own definition of a sustainable investment. This new Bloomberg tool provides clarity and empowers the user to customize sustainable investment criteria to determine if portfolios, funds, or indices meet their requirements with confidence. Based on Bloomberg’s extensive range of company ESG data, proprietary metrics and scores, the tool enables investors to assess investments in a comparable and scalable way.”

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