There is strong support from financial institutions and the government for the immediate development of a sustainable finance taxonomy that is interoperable with international jurisdictions and addresses critical Australian economic issues. To this end, a second taxonomy paper, which recommends key design elements for an Australian sustainable finance taxonomy and a timeline for immediate development was released late last year.
The recommendations set out a pathway for taxonomy adoption that starts with the immediate use of the taxonomy for the development and labeling of green financial products and sustainability standards. In addition, the recommendations will assist financial institutions to assess the credibility of transition plans, which Australian regulators could use to regulate greenwashing. The paper also sets out possible longer-term uses including fuller integration of the taxonomy as part of corporate and financial sector disclosures.
Click here to read the original article published by the Australian Sustainable Finance Institute.
Please give your feedback on this article or share a similar story for publishing by clicking here.
