- The roadmap calls for financial system participants to embed sustainability into their organisations
- The roadmap includes an action plan including recommended timelines
- 37 recommendations, including mandating sustainability reporting and assurance for listed entities
In November 2020, the Australian Sustainable Finance Initiative (ASFI) released their roadmap which aims to align Australia’s financial system with a sustainable, resilient, and prosperous future for all Australians. The roadmap outlines 37 recommendations as well as an action plan which includes recommended short (2021-2022), medium (2023-2025) and long-term (2026 – 2030) time frames for implementation.
Who are AFSI?
ASFI brings together 80 organisations from Australia’s major banks, superannuation funds, insurance companies, financial sector peak bodies and academia who work together to prioritise human well-being, social equity, and environmental protection, while underpinning financial system resilience and stability.
The Roadmap calls for financial system participants to embed sustainability into their organisation’s purpose, strategy and leadership, and to support the transition of the economy to net zero emissions by 2050, consistent with international conventions including the Paris Agreement and the UN Sustainable Development Goals.
As an industry, we are ready to lead and play our part.
- Recommendation 11 suggests that by 2023 financial institutions with annual consolidated revenue of more than $100 million report according to the TCFD recommendations on an ‘if not, why not’ basis
- Sustainability reporting and assurance is mandated for listed entities and for unlisted assets wholly owned by financial institutions (recommendation 15)
- Australia’s financial system participants enable Australians to make financial decisions based on their values and sustainability preferences. This includes ensuring financial advisers (human and robot), superannuation funds, accountants and platforms consider the sustainability preferences of consumers (recommendation 28)
ASFI Co-chair Simon O’Connor, said “As governments across Australia – federal, state and local – set a direction for a stronger and more sustainable nation, this Roadmap is the financial services sector’s contribution to ensuring our sector is aligned with this future. As an industry, we are ready to lead and play our part”.
Where to next?
ASFI will provide further details on the implementation phase of the roadmap in early 2021.
Australian Sustainable Finance Roadmap
Read ACSI’s full report, including their 37 recommendations on the ACSI website.Read more