New 2˚C scenario analysis tool is powered by data from Rystad Energy
London, New York — 6 February 2018 — The Carbon Tracker Initiative, an independent financial think tank, announced today that its in-depth analysis of the impact of climate change on a company’s exposure to carbon transition risk is available through 2˚C Scenario Analysis Tool on the Bloomberg App Portal at {APPS TRACK <GO>}.
Bloomberg Terminal subscribers can now access the Carbon Tracker Initiative’s research that provides investors in the energy sector and commodities markets, or those with a focus on sustainable investments, insight into oil and gas companies’ upstream portfolios. The tool provides forward-looking quantitative indicators based on project-level data provided by Rystad Energy, an independent source of business intelligence data about the oil and gas industry, alongside Bloomberg market data.
The introduction of 2˚C Scenario Analysis follows the publication of climate risk disclosure recommendations by the Financial Stability Board’s (FSB) Task Force on Climate-related Financial Disclosures (TCFD) in 2017. The TCFD recommends that companies conduct regular climate-related scenario analyses, including a scenario that limits global warming to 2˚C. The app includes various indicators for select listed oil and gas companies, that users can incorporate into their assessments of resilience under carbon constrained scenarios.
“There is increasing awareness that the future demand for oil and gas is subject to considerable uncertainty due to advances in technology and increasing climate-related policy, in particular following the Paris Agreement. Investors are currently faced with the challenge of understanding transition risk and learning how to incorporate it into their investment processes. By providing Bloomberg Terminal subscribers increased access to data on the underlying detail of oil and gas portfolios, we’re helping investors navigate and evolve their understanding of these issues.”
Andrew Grant, Senior Analyst at Carbon Tracker
The app portal gives Bloomberg Terminal subscribers access to a diverse library of financial tools, created by Bloomberg clients and third-party software developers from around the world. Applications are reviewed and selected for the Bloomberg App Portal based on a variety of parameters, including the application’s ability to complement and enhance existing features and information resources of the Bloomberg Terminal service. The 2˚C Scenario Analysis tool complements Bloomberg’s commitment to incorporate more financial data, analysis, news and other capabilities onto the Bloomberg Terminal that support sustainable investment activities.
“Bloomberg remains committed to mainstreaming sustainable finance and business, and engaging our communities and customers to reduce carbon emissions,” said Curtis Ravenel, Global Head of Sustainable Business and Finance at Bloomberg and a member of the Secretariat of the Task Force on Climate-related Financial Disclosures. “The Scenario Analysis Tool builds on that commitment and aligns with the recommendations from the TCFD, generating a range of metrics to help illustrate the potential financial impact of climate change across the oil and gas industries.”
Lars Eirik Nicolaisen, Partner at Rystad Energy added: “Over the past few years, we have witnessed increasing interest from financial and industry clients in using our fundamental upstream data in the mission of gauging climate risk. This app showcases how parts of our data can be used to do that. We find that the discussion is much less black and white than what headlines often suggest, and we’re pleased to work with Bloomberg to provide investors with a deeper understanding of this emerging risk element.”
Bloomberg Terminal subscribers globally can find dozens of contributed applications on the Bloomberg App Portal at {APPS<GO>} for data visualization, financial analysis, charting, risk modeling and other workflows. Carbon Tacker Initiative’s 2˚C Scenario Analysis app is listed as 2D Scenario Analysis on the Bloomberg App Portal or accessed directly at {APPS TRACK <GO>}.
About Carbon Tracker
The Carbon Tracker Initiative is an independent financial think tank that carries out in-depth risk analysis on the impact of the energy transition on capital markets and the potential investment in high-cost, carbon-intensive fossil fuels. Its team of financial market, energy and legal experts apply groundbreaking research using leading industry databases to map both risk and opportunity for investors on the path to a low-carbon future. It has cemented the terms “carbon bubble”, “unburnable carbon” and “stranded assets” into the financial and environmental lexicon.
About Rystad Energy
Rystad Energy is an independent oil and gas consulting services and business intelligence data firm offering global databases, strategy consulting and research products. Our extensive research and product range on global and local markets has strengthened insight and expertise of our longtime clients. We do so by developing confidence and trust in our data and support. Our highly qualified and experienced people help our clients in business development and portfolio strategy, market and trend analysis, benchmarking and competitor assessment. Known for our up-to-date, fast and comprehensive product and service delivery, we engage with E&P and oilfield service companies, investment banks, investors and governments alike. www.rystadenergy.com
About Bloomberg
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 Terminal service. Bloomberg’s enterprise solutions build on the company’s core strength: leveraging technology to allow customers to access, integrate, distribute and manage data and information across organizations more efficiently and effectively. For more information, visit Bloomberg.com/company or request a demo.
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