Bloomberg is a rather unique player in the sustainability space – it is an aggregator and provider of ESG data, a media outlet following and analyzing key developments in the space, and a company with sustainability-minded leadership that just issued an impact report following both GRI and SASB reporting standards, all in one. In this presentation, Bloomberg LP’s Global Head of Sustainable Business & Finance Curtis Ravenel will share his latest observations on overall progress in aggregating and reporting ESG performance data.

1. THE EVOLUTION OF
AGGREGATION &
REPORTING OF ESG DATA
SUSTAINABLE BRANDS −
NEW METRICS 2015

2. WE RECOGNIZE THAT WHAT IT MEANS FOR A COMPANY
TO ENGAGE IN SUSTAINABILITY HAS CHANGED…
Before: Reactive
Philanthropic donations targeted to local
institutions and driven by interest of senior
management
Community engagement / support for
local public interest projects and issues
Employee volunteer programs to support
Social Investment Social Investment Strategic Sustainability
Now: Proactive
Aligning philanthropic support with
business activity
Managing operations to enhance bottom
line and provide social / environmental
benefit
Developing products and services which
enable companies to do good while
doing well

3. AT BLOOMBERG, WE FOCUSED ON INTERNAL OPERATIONS /
EMPLOYEES; NOW, WE ARE EXTENDING OUR EFFORTS TO OUR
PRODUCT AND SERVICES
Areas of Service/Activity - Principal
Customers: Internal
Primary Function: Integrate
Sustainability considerations into all
global operations when and where it
makes sense
▪ Supply Chain & Waste Reduction
▪ Marketing, Purchasing, INK
▪ Markets Magazine, Businessweek
▪ Engineering, Asset Management
▪ Facilities & Technology
▪ Info Sys, Broadcast, Networks
▪ R&D Systems, Data Centers
▪ Facilities, Leasing
▪ Reporting & Analysis
▪ Employee Business Travel
▪ Distribution
▪ Carbon Footprint
Philanthropy
Leverage our Philanthropic
assets to partner with thought
leading NGOs to accelerate
the sustainability integration into
business and investment decisions
Areas of Service/Activity - Principal
Customers: External
Primary Function: Integrate
Sustainability considerations into all
products /services when and where
it makes sense
▪ Core Terminal
▪ Equities / Portfolio Analytics
▪ Commodities, Fixed Income
▪ Foundational Applications
▪ News & Multimedia
▪ Print News, Markets
▪ Bloomberg Businessweek
.com/mobile/TV
▪ Data Products
▪ BNEF/BNA/BGOV
▪ Data License

4. WE’VE USED THESE PRINCIPLES TO CREATE A ROADMAP
FOR A MORE COMPREHENSIVE APPROACH TO
SUSTAINABILITY IN ALL THAT WE DO
BSUSTAINABLE 2020
A COORDINATED, AGGRESSIVE UNIQUE APPROACH TO ALIGN OPERATIONS, PRODUCT
AND PHILANTHROPY TO AMPLIFY OUR ‘SUSTAINABLE IMPACT’
EMISSIONS
REDUCTION
INVESTMENTS
DEMONSTRATE
THAT INTEGRATING
SUSTAINABILITY INTO
BUSINESS DECISIONS
MAKES SENSE
DEMONSTRATE
THAT INTEGRATING
SUSTAINABILITY INTO
INVESTMENT DECISIONS
MAKES SENSE
SUPPORT EFFORTS TO
DEVELOP STANDARDS AND
METHODOLOGIES THAT
ENABLE BOTH OF THE
ABOVE
SUSTAINABLE
FINANCE PRODUCT
STRATEGY
SUSTAINABILITY DATA
AND
ACCOUNTING STANDARDS
OPERATIONS
PRODUCT
PHILANTHROPY
OPERATIONAL
EXCELLENCE
MARKET
DEVELOPMENT
PARTNER
ENGAGEMENT
THOUGHT
LEADERSHIP
FINANCIAL
INTEGRATION

5. October 2, 2015
ESG TRENDS IN
CAPITAL MARKETS
SUSTAINABLE BRANDS −
NEW METRICS 2015

6. RAPID GROWTH IN BLOOMBERG’S ESG USERS AND
DATA CONSUMPTION CORROBORATES GROWING
CORPORATE INTEREST
ESG UNIQUE USERS (12 MONTHS ROLLING, MONTHLY, AS OF 8/30/2015)
YTD GROWTH: 26%
YOY GROWTH: 60%
718MN+ DATA HITS (12 MONTH ROLLING)

7. AS A RESULT, PRODUCTS AND INITIATIVES ARE NOW
PROLIFERATING ACROSS ASSET CLASSES, TYPES AND
ORGANIZATIONS
THE RANGE OF INSTITUTIONS INTEGRATING ESG INTO THEIR BUSINESS
ILLUSTRATES UPTAKE:
MUTUAL FUNDS (EQUITY AND FIXED INCOME)
SELL-SIDE RESEARCH
INDEX PRODUCTS
EXCHANGE TRADED PRODUCT
STOCK EXCHANGES
PRIVATE EQUITY

8. SUSTAINABLE FINANCE HAS EMERGED AND DIVERSIFIED
INTO AN INCREASINGLY MAINSTREAM, BUT ALSO INNOVATIVE,
MARKETPLACE
EQUITY INDEX/ETF FIXED INCOME PRIVATE EQUITY REAL ESTATE FINANCIAL INNOVATION
SOCIALLY
RESPONSIBLE
INVESTMENT
▪ NEGATIVE SCREENING
▪ VALUES-DRIVEN
INVESTING
▪ HEAVY CORPORATE
ENGAGEMENT
▪ ESG SCORES AND DATA
▪ VALUE NOT VALUES
▪ “SUSTAINABLE” ALPHA
▪ RISK OVERLAYS
▪ FUNDS, INDICES, ETFS
▪ GREEN/THEMATIC BONDS
▪ ESG IN FIXED INCOME
▪ REAL ESTATE, PE
▪ STRUCTURED FINANCE
Climate, water & ag funds
Fossil fuel free funds
Carbon efficient strategies
Green bonds & indices
Solar lease securitization
Green city bonds
Vaccine & gender bonds
REITs, Yieldcos & debt
Green REITs & REIT debt
Green RMBS & CMBS
BROAD
SUSTAINABLE
FINANCE
SUSTAINABLE &
RESPONSIBLE
INVESTMENT

9. SUSTAINABILITY
REPORTING
SUSTAINABLE BRANDS −
NEW METRICS 2015

10. FOCUSING SPECIFICALLY ON U.S.-LISTED COMPANIES, HOW SATISFIED
ARE YOU WITH THE INFORMATION CURRENTLY BEING PROVIDED BY
THESE COMPANIES ON THE FOLLOWING TOPICS?
DESPITE ALL OF THE MARKET DEVELOPMENT IN THE ESG
SPACE, MANY INVESTORS STILL FEEL DISSATISFIED WITH
THE CURRENT STATE OF DISCLOSURE
Source: PwC
Sustainability Goes Mainstream, May 2014
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Satisfied Dissatisfied
How risks and
opportunities are
identified and
quantified in
financial terms
Comparability of
sustainability
reporting
between
companies in the
same industry
Relevance and
implications of
sustainability
risks
issues
How the
company
identifies social
and
environmental
impacts in its
supply chain
Key
performance
indicators
related to each
identified
material issue
Sustainability
strategy that is
linked to
business
strategy
Internal
governance of
sustainability
issues
Process used to
identify material
sustainability
issues

11. DISSATISFACTION AMONG INVESTORS STEMS
PERCEPTION OF RELEVANCE; EVIDENCE OF FINANCIAL
IMPACT IS CRITICAL TO GAIN ADOPTION
FINANCIAL
FINANCIAL/
SUSTAINABILITY
SUSTAINABILITY
MATERIALITY
TIME
LOW
WELL KNOWN,
FULLY DISCOUNTED
HARDER TO DEFINE,
BUT VERY VALUABLE
LONG TERM,
UNKNOWN EFFECT
HIGH
NEAR FAR

12. ROBUST STANDARDS CAN ACCELERATE DISCLOSURE OF
COMPARABLE DATA AND ADOPTION OF BEST PRACTICES;
FOR BOTH CORPORATES AND INVESTORS
EARLY
STAGE
ADOPTION
DEVELOPED
TODAY
INNOVATION
INITIAL ACTIVITY
INFORMATION / ANALYTICS
BEST PRACTICES IDENTIFIED
BENCHMARKS ESTABLISHED
MEASUREMENT / MANAGEMENT
FINANCIAL ANALYSIS / INTEGRATION
MAINSTREAM APPLICATION
“DERIVATIVE” FINANCIAL INSTRUMENTS
STANDARD EVOLUTION
STANDARDS-SETTING
PHASE
SUSTAINABILITY RISK /
OPPORTUNITY FOR
COMPANIES AND INVESTORS
STANDARDIZATION /
NORMALIZATION
BEGINS
QUALITY,
COMPARABLE
DATA EMERGES

13. FOCUSING ON STANDARDS HELPS PRODUCE QUALITY
DATA IN THE MEDIUM-TERM AND DEVELOPMENT OF
‘SUSTAINABLE FINANCE’ IN THE LONG-TERM
Standard Setter
4
5
6
1
2
3
• Issue Identification
• Multi Stakeholder
• Issue Prioritization
• Targeted Stakeholders
• Measurement
• Performance
• Financial Integration
• Capital Flows
• Application
• Certification
• Implementation
• Validation
• Integration of Financial
and Sustainability
Reporting
Value Proposition Future State
NGOs /
Companies
Industry /
Regulators
Raters /
Research
Asset Owners /
Managers
Analysts / PMs /
planners
Companies /
Communities
Companies /
Accountants
7
Sustainable
Finance
GISR
UN PRI
SASB
CERES
GRI
USSIF
IIRC
WRI
[water]
[carbon]
CDP
SIGNATURE
INITIATIVE
SIGNATURE
INITIATIVE

14. SASB IS SEPARATE, BUT COMPLIMENTARY TO
A NUMBER OF OTHER REPORTING INITIATIVES;
ALIGNMENT IS CRITICAL
Corporate Reporting Dialogue (CRD)
§ Financial Accounting Standards Board (FASB)
§ Global Reporting Initiative (GRI)
§ Carbon Disclosure Project (CDP)
§ Climate Disclosure Standards Board (CDSB)
§ InternationalAccounting Standards Board (IASB)
§ International Integrated Reporting Council (IIRC)
§ International Public Sector Accounting Standards Board (IPSASB)
§ International Organization for Standardization (ISO)
§ Sustainability Accounting Standards Board (SASB)
KEY DIMENSIONS
1. VOLUNTARY / COMPULSORY
2. NATIONAL / GLOBAL
3. FINANCIAL / NON-FINANCIAL
Corporate Reporting Dialogue (CRD)
Financial Accounting Standards Board (FASB)
Global Reporting Initiative (GRI)
Carbon Disclosure Project (CDP)
Climate Disclosure Standards Board (CDSB)
International Accounting Standards Board (IASB)
International Integrated Reporting Council (IIRC)
International Public Sector Accounting Standards Board (IPSASB)
International Organization for Standardization (ISO)
Sustainability Accounting Standards Board (SASB)

15. AS A FIRST STEP, WE REPORTED OUR 2014
PERFORMANCE USING BOTH GRI AND SASB
STANDARDS

16. WHAT DOES THE FUTURE HOLD? A HYPER-TRANSPARENT
WORLD WILL AFFECT DISCLOSURE
1. ASSET LEVEL INFORMATION HAS
EMERGED AS A NEW FRONTIER
2. SUPPLY CHAIN INFORMATION IS
CHALLENGING BUT INCREASINGLY
IN DEMAND
3. RISK AND OPPORTUNITY
EVALUATION GOES BEYOND THE
SUPPLY CHAIN RELATIONSHIP
4. CURRENT FRONTIER LEVERAGES
NEWS/SOCIAL MEDIA WITH DATA
SCIENCE