Moving Sustainable Finance From Theory to Practice: Case Study

Sep 3, 2014 10:25 AM ET
  Bloomberg, the global business and financial information and news leader, gives influential decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company’s strength – delivering data, news and analytics through innovative technology, quickly and accurately – is at the core of the Bloomberg Professional service, which provides real time financial information to more than 315,000 subscribers globally.    To create enduring sustainable solutions, Bloomberg seeks to have both internal and external impact. Increasing transparency around sustainability risks and opportunities improves decision making for the investing community. Bloomberg supports the growth of sustainable investment through comprehensive, quality sustainable-finance information. To this end, our Carbon Risk Valuation tool (CRVT) helps companies and investors evaluate financial risk from exposure to high-carbon assets. See how, with the help of our partners, we develop the tool.   An Emerging Sustainability Challenge
Avoiding the worst effects of global warming requires limiting our collective carbon output. But doing so could plausibly mean that certain assets – particularly high- carbon assets (like oil reserves)- might be improperly valued and potentially “stranded.”   Using Bloomberg Expertise to Translate a Theory
So how can we make the financial risks (and rewards) of potentially “stranded assets” more visible to investors? We partnered with Generation Investment Management’s Foundation, which helped develop the stranded assets theory, and tapped our own experts – in ESG , BNEF, Bloomberg Industries, Desktop build, Sustainability – to develop the CRVT - the Carbon Risk Valuation Tool.   Starting the Conversation
The beta CRVT on the terminal is advancing the conversation around stranded assets. The CRVT translates theory into financial terms that help investors better understand potential financial impacts associated with carbon exposure in their investments. And there’s more to do. We’ll continue to refine the tool and shed light on other risks and opportunities for investors by focusing on sustainability.   CRVT is just an example. To check out more of what we are doing Bloomberg visit