Sustainable Finance taxonomies are increasingly seen as crucial frameworks to both increase consistency around how sustainability credentials of assets and portfolios are assessed and measured across the finance sector, and to mobilize capital flows towards sustainability activities and assets.
Given that capital markets are global, international alignment between sustainable finance taxonomies in different jurisdictions is critical. The Australian sustainable finance taxonomy project, led by ASFI in partnership with the Commonwealth Treasury, builds upon work done on sustainable finance taxonomies internationally to ensure international credibility and interoperability. It coordinates with the development of taxonomies in other jurisdictions, across the Asia-Pacific region, the European Union, Canada, and the United Kingdom.
ASFI came together with participants from Indonesia’s Fiscal Policy Agency (BKF) and the Financial Services Authority (OJK) to share technical knowledge of taxonomies. This included building a shared understanding of the fundamental components of sustainable finance taxonomies, how taxonomies are used in practice by businesses and industry to facilitate green capital flows and the impacts and opportunities for regulators and policymakers.
The Australian Sustainable Finance Taxonomy Project is a joint industry-government initiative to develop an Australian sustainable finance taxonomy. Building on work done on sustainable finance taxonomies internationally, this project works with experts and stakeholders across the Australian financial system to design and develop an Australian sustainable finance taxonomy that is credible, usable, and internationally interoperable, while reflecting the Australian economy and context.
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