Uniform measurement and evaluation (M&E) methods represent one of the impact investing industry’s greatest barriers to growth. Accurate data is essential to driving further investment in the sustainability sector, as it creates transparency on the returns investors are receiving. Bloomberg L.P. has begun to explore the opportunity to address the challenges of M&E within the social sector. As a leader positioned at the intersection of technology, data and finance, Bloomberg has made its mark using technology to bring transparency to markets, thus driving increased economic activity. Over the past year, Bloomberg has developed the BCAUSE strategy, which is implemented within Bloomberg’s global offices through the Impact Accelerator, a program that enables Bloomberg employees to bring their talent to nonprofits and other social ventures to address social and environmental challenges.
The 2020 Vision for the Impact Accelerator Initiative includes four areas in which it seeks to build upon Bloomberg’s sustainability efforts:
- Leadership Development
- Product Development
While all these target areas are essential to the success of the program, the Product Development efforts will have the greatest impact on the advancement of M&E that supports further sustainable investment.
One example of such a product that Bloomberg has already created and started to implement is the Carbon Risk Valuation Tool (CRVT). CRVT is a tool that helps companies and investors evaluate financial risk from exposure to high-carbon assets by increasing transparency around sustainability risks and opportunities. Ultimately CRVT supports improved decision making for the investing community by supporting further sustainable investment through comprehensive, quality sustainable finance information.
Tools like CRVT that Bloomberg have established have enabled the firm and its customers to begin accurately evaluating the impact of their operations. By developing this systemic infrastructure around the M&E of the environmental, social, and governance of its business operations, they have the opportunity to create new competitive advantages in a rapidly growing #SocEnt space that is in immediate need of a uniform method for tracking its impact.
Curtis Ravenel Speaking at Global Green Summit, Source: Eco-Business
-Samuel R. Harris