In 2015, the United Nations member states adopted the 17 Sustainable Development Goals (SDGs) as a global blueprint to achieve peace and prosperity for people and the planet by 2030. However, the funding gap to achieve these ambitious goals is estimated by the UN to be $2.5-3 trillion per year for developing countries.
Against this backdrop, Bloomberg has unveiled today a groundbreaking tool designed to help investors “assess the potential impact of a company’s business on any of the United Nations’ 17 Sustainable Development Goals.”
The tool offers investors a data mapping and materiality assessment, providing clarity for those seeking to direct capital towards sustainable assets and align private sector activities with the SDGs.
It integrates the UN Environmental Programme Finance Initiative (UNEP FI) Sector Impact Map, “developed as part of its suite of resources based on its unique holistic impact methodology,” into Bloomberg’s ESG data offerings, Bloomberg explains.
The integration of the UNEP FI Sector Impact Map addresses the increasing demand for objective SDG-related data, mapping over 500 sectoral activities to 38 impact topics and the SDGs.
This comprehensive mapping distinguishes between positive and negative impacts that a company may have on the environment, people, and economic development. UNEP FI’s Sector Impact Map has been applied across 50,000 public companies using Bloomberg’s granular segment revenue classification.
“UNEP FI works with the finance industry to mainstream impact analysis and management in business and finance, to help close the SDG funding gap. We have developed a range of impact management tools and resources across the three pillars of sustainable development and across economic sectors and activities, mapping related negative and positive impacts,” said Careen Abb, SDGs and Impact Lead at UNEP FI.
“We are delighted the available resources are being used to help to mainstream impact management, and to accelerate the transition to an economy that helps deliver the SDGs,” Abb added.
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As Bloomberg writes in the press release announcing the move, the new tool will provide investors with “additional market information for corporate engagement and security selection,” enabling them to “perform benchmarking and fund classification.”
“Bloomberg’s ESG data, research, and analytics help clients mitigate risk and comply with new and emerging regulatory requirements, and pursue investments aligned with their sustainability commitments,” Global Head of Sustainable Finance Solutions at Bloomberg Patricia Torres said, adding:
“By mapping the UN Sector Impact Map to our comprehensive and high-quality ESG data, our customers can bridge the gap between ESG integration and Impact investing, acting with more clarity and transparency,” Torres added.
This innovative collaboration between Bloomberg and UNEP FI marks a significant step towards aligning financial activities with global sustainability goals, empowering investors to make informed decisions that contribute to a more sustainable and equitable future.
The tool is accessible on the Bloomberg Terminal and through Bloomberg Data License for enterprise use.
Editor’s Note: The opinions expressed here by the authors are their own, not those of Impakter.com — Featured Photo Credit: Global Festival of Action for Sustainable Development.
