ASFI Launches Sustainable Finance Taxonomy with Expert Group’s Guidance

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SYDNEY – The Australian Sustainable Finance Institute (ASFI) has announced the commencement of its sustainable finance taxonomy development, bringing in the expertise of the Taxonomy Technical Expert Group (TTEG).

The TTEG, comprising 25 esteemed leaders, has received endorsement from the Australian Council of Financial Regulators’ Climate Working Group. The group boasts diverse skills, reflecting knowledge in sustainable finance, comprehensive decarbonisation strategies, climate science, environmental policy, human rights, and Indigenous perspectives.

This significant initiative will be co-led by Guy Debelle, former Deputy Governor of the Reserve Bank of Australia, and Emma Herd, renowned for her in-depth expertise in sustainable finance taxonomies. Their combined leadership aims to provide clear direction and ensure the taxonomy effectively addresses Australia’s unique financial landscape and challenges.

One primary goal of the taxonomy is to establish common standards for green and transition finance, which is pivotal in bolstering Australia’s journey towards achieving its net-zero ambitions.

In collaboration with ASFI, the Australian Government is co-funding this ambitious project. Their shared goal is to ensure the taxonomy is meticulously developed with valuable input and endorsement from the TTEG.

Ms Herd commented on the taxonomy’s significance, “The Australian taxonomy will play a key role in guiding the transition of our economy, financial portfolios, companies and economic activities by providing clear and consistent definitions of what is classified as a sustainable activity.”

Furthermore, over the forthcoming 12 to 18 months, the TTEG will play a hands-on role. They will focus on influencing climate mitigation criteria, formulating data requirements, setting guidelines for transitional activities, establishing robust frameworks for social safeguards, and ensuring no significant harm.

This new phase of the sustainable finance taxonomy project marks its second stage, following the Australian Government’s commitment in March 2023 to co-sponsor the ASFI’s leading role in the taxonomy’s evolution.

In the process, the ASFI will collaborate closely with an international taxonomy and sustainability experts consortium. This consortium will be led by the globally respected Climate Bonds Initiative, ensuring the prepared technical products are of the highest standard for TTEG’s review and endorsement.

This initiative underscores Australia’s dedication to a transparent, sustainable financial future, bridging the divide between finance and clear sustainable activity guidelines.

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