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illuminem summarizes for you the essential news of the day. Read the full piece on ESG News or enjoy below:
🗞️ Driving the news: Bloomberg (see sustainability performance) has launched MARS Climate, a new module in its Multi-Asset Risk Management suite, designed to help portfolio and risk managers assess the financial impact of climate change
• The tool uses BloombergNEF’s TRACT tool to forecast revenue risks and opportunities across various climate scenarios
• It strengthens Bloomberg's risk management offering by integrating physical and transition climate risk analysis
🔭 The context: As financial firms face growing regulatory pressure to evaluate climate-related risks, MARS Climate aligns with global standards such as the NGFS frameworks
• The tool enables comprehensive scenario analysis, offering granular insights down to the security level
• Its integration with the Bloomberg Terminal ensures seamless access alongside other sustainable finance tools
🌍 Why it matters for the planet: Enhanced climate risk assessment supports financial firms in managing exposures to natural catastrophes, which Swiss Re (see sustainability performance) reported caused $280 billion in damages in 2023
• Better risk management can drive investments toward more sustainable, resilient assets
• This transition is crucial for mitigating long-term environmental and economic impacts of climate change
⏭️ What's next: Financial institutions can now leverage MARS Climate to improve their regulatory compliance and portfolio resilience
• The tool is expected to catalyze a shift towards more data-driven, climate-aware investment strategies
• Its rollout may also prompt further innovation in sustainable finance analytics
💬 One quote: “Portfolio and risk managers increasingly look to perform climate risk analysis alongside other financial risk assessments to manage risk and regulatory reporting.” – Dharrini Bala Gadiyaram, Global Head of Risk Product at Bloomberg
📈 One stat: Economic damages from natural catastrophes reached $280 billion globally in 2023, according to Swiss Re
See detailed sustainability performances of Bloomberg L.P and Swiss Re
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