Newsletter: May
Welcome to Canbury’s May newsletter. This month, we cover insights into our anti-greenwashing rule solution, our enhanced regulatory analysis, and how we can help you with scenario analysis. Scroll to sign-up to our inaugural webinar on the U.S. sustainable policy landscape, and learn more about our full-service SDR solution in partnership with KnowYourFunds.
If you’d welcome a call on any of the content in our newsletter, please get in touch. Or if you find yourself in Central London, do call in.
- Many thanks,
- The Canbury Team
Meet the requirements: Anti-greenwashing rules
For the UK market, the Financial Conduct Authority (FCA) has just finalised its anti-greenwashing rule and guidance. All authorised firms must comply by 31 May 2024.
We believe that asset managers who are comfortable leveraging AI will have a competitive edge in meeting not only the UK’s anti-greenwashing rule, but also other markets’ related regulations.
Our AI-powered tool is ready to help you navigate anti-greenwashing regulations, and highlights where sustainability claims may be unfair, unclear or misleading. Our tool involves:
- Content analysis: The tool processes both text and visual content, ensuring a thorough assessment of your materials.
- AI-assisted risk assessment: AI models analyse the collected content to identify potential greenwashing risks.
- Human review: Our team evaluates the results, and provides a layer of human oversight to ensure accuracy and relevance.
- Actionable recommendations: We provide clear, practical guidance on addressing identified risks, to ensure you maintain compliance.
- Ongoing support and future proofing: We offer continuous support to keep you informed and ahead of evolving regulations.
Our tool is cost-effective, ready-to-go, and results can be turned around in days. We can tailor the regulatory analysis to non-UK markets.
Reach out to Ben Wilmot (ben.wilmot@canbury.io) to request a demo.
Enhancing investors’ regulatory analysis
We provide on-demand regulatory insights tailored to investors’ needs. For example, we can analyse financial regulations to understand disclosure requirements, real-economy regulations to understand implications for portfolio companies, and flag incoming regulations to ensure preparedness. A sample of the regulations we’ve pulled and analysed include:
- Brazil’s Sustainable Taxonomy: Brazil is developing a sustainable taxonomy to classify companies’ activities and direct capital toward more sustainable activities, with the first version expected by October 2024.
- Canada’s Bill S-211: The Fighting Against Forced Labour and Child Labour in Supply Chains Act came into force January 1, 2024, and requires certain Canadian entities to conduct due diligence, publish annual reports, and develop remediation plans to identify, prevent, and mitigate the risks of forced labour and child labour in their supply chains.
- Australia’s Treasury Laws Amendment Bill 2024: The proposed amendment bill introduces mandatory climate-related financial disclosures for certain Australian companies, aligned with international sustainability reporting standards, to improve transparency and inform investor decision-making regarding climate-related risks and opportunities.
Our regulatory analysis is up-to-date and bespoke to your needs to help you navigate the changing regulatory landscape. We can prepare analysis on disclosure obligations and real economy regulations that affect your portfolio companies, as frequently as your team needs.
Reach out to Amiya Taggart (amiya.taggart@canbury.io) to learn how you can enhance your approach to regulations.
Our approach to scenario analysis
Our approach to scenario analysis
We’ve developed an approach to scenario analysis that is efficient and easily comparable across strategies and portfolios. Our approach maps portfolios to the variables most likely to be impacted in different climate scenarios through academic research and NGFS models and data.
Scenario analysis is a core component of many climate reporting regulations, such as TCFD product-level reporting and ISSB’s IFRS S2 standards, and other incoming international regulations such as California’s SB-261, Climate-related Financial Risk Act. At Canbury, we help leverage scenario analysis outputs in alignment with TCFD.
Click here to read more on scenarios, or get in touch with Vishal Kumar (vishal.kumar@canbury.io) if you’d like some advice on your scenario analysis or TCFD-related reporting.
Canbury Conversations: U.S. sustainable policy landscape
Join Satyam Khanna and Canbury’s Will Martindale in discussion of the U.S. sustainable policy landscape, Monday 10th June, 3pm BST. The discussion will include topics such as the U.S. SEC ESG regulations, the Inflation Reduction Act, the dynamics of the U.S. election, and the anti-ESG movement.
Satyam Khanna most recently served as a Biden Administration appointee and a lead architect of the U.S. Inflation Reduction Act’s Greenhouse Gas Reduction Fund at the U.S. Environmental Protection Agency—playing a pivotal role in designing the first-of-its kind climate finance program, which will mobilise financing for tens of thousands of clean energy projects across America.
Satyam also served on the Biden-Harris Presidential Transition, Chief of Staff and Counsel to SEC Commissioner Robert Jackson, and as U.S. SEC’s Senior Policy Advisor for Climate & ESG. Satyam is the President of Khanna Economic Strategies, a sustainability consulting firm.
If you’d like to join us in discussion, click here or reach out to Emmy Shaw (emmy.shaw@canbury.io) to register for the webinar.
A full-service ready-to-go SDR solution
In case you missed it, KnowYourFunds and Canbury are partnering to provide asset owners and managers a full-service ready-to-go SDR solution. Our joint offering combines our expertise in sustainable investing and regulatory reporting with KnowYourFunds’ technology and data management capabilities. Our solution provides:
- SDR training tailored for sustainability, investment, and compliance teams
- Label and KPI selection for sustainable funds
- Fund-level reporting that is fully automated and at the click of a button
- Third-party assessment that is cost-effective and independent
- Ongoing maintenance including a full portfolio look through
Our partnership brings together deep industry knowledge, advanced technology, and a commitment to supporting our clients in their sustainable investing journey. If you’re interested in learning more about our SDR solution or you’d like to arrange a demo, get in touch with Will Martindale (will.martindale@canbury.io).