Bloomberg L.P. has finalised the acquisition of Viridios AI, a company renowned for its expertise in carbon analytics and data, from its parent entity, Viridios Group. This strategic move is set to significantly enhance Bloomberg's portfolio of offerings within the carbon market sector, providing a richer array of data and insights for its clients.
Eddie Listorti, CEO of Viridios Group, commented on the transaction: “This agreement with Bloomberg is the culmination of five years of innovative data science, research and analysis by the team at Viridios AI and I would like to acknowledge everyone in the team who has worked to build such a unique and powerful carbon market dataset.” This statement underscores the dedication and effort invested by the Viridios AI team, highlighting the value of their developed datasets.
The acquisition comes in the wake of a challenging year for the voluntary carbon markets in 2024, during which both trading volumes and prices experienced a notable decline. This downturn was attributed to increased scrutiny from media outlets, which in turn affected demand for carbon credits. However, the announcement of a UN-led global market established under Article 6 during COP29 offers new avenues for potential expansion in the sector.
Through this acquisition, all existing data related to carbon credit projects, pricing, and valuations that Viridios AI has generated will now be managed by Bloomberg. Additionally, key personnel from Viridios, including Chief Market Intelligence Officer Bertrand Le Nezet, will join Bloomberg to contribute to this evolving field.
Le Nezet elaborated on the implications of the acquisition, stating, “The transaction with Bloomberg allows us to achieve one of our objectives – seeing what we’ve built in every CFO’s office. With this carbon pricing is going to become mainstream and that is so important, because it’s a way for companies to stress test their current business models.” He emphasised the necessity for companies to integrate carbon externalities into their business models to remain competitive in the future. “Increasingly, the CFOs of the world need to not just do the traditional accounting, but take into consideration greenhouse gas accounting,” he added, reflecting the increasing relevance of sustainability metrics in financial decision-making processes.
The integration of this data into the Bloomberg Terminal will prove beneficial to financial institutions such as banks and asset managers, as they can leverage this information to establish or enhance their carbon trading operations.
Emilie Gallagher, Global Head of Commodities, FX and Macro Product at Bloomberg, welcomed the acquisition by stating, “We welcome the voluntary carbon credit data, analytics and expertise that Viridios has transferred to Bloomberg, and we look forward to the valuable ways our new colleagues will contribute to Bloomberg’s expansion of offerings in the carbon markets space.” Gallagher highlighted Bloomberg's commitment to fostering innovation and delivering quality data and insights, crucial for navigating the rapidly developing landscape of carbon markets.
Following the completion of the acquisition, Viridios Group intends to redirect its focus towards creating digital climate solutions through its subsidiary, Pangolin Associates. The company is looking to develop tools specifically designed for measuring greenhouse gas emissions, which will be tailored for corporate clients seeking to understand and manage their environmental impact more effectively.
Source: Noah Wire Services