Safeguard Mechanism Reforms: Joint Finance Industry Statement

Leading Australian financial institutions and finance industry peak bodies have made a joint statement on the Australian Government's proposed Safeguard Mechanism reforms.

As well as finance industry peak bodies ACSI, ASFI, IGCC and RIAA, the joint statement has been signed directly by institutional investors including Aware, Cbus, HESTA, First Sentier, IFM, Metrics, and Ethical Partners.

These organisations represent more than 500 investors, banks, insurance firms and financial service providers who collectively hold over USD$29 trillion assets under management.

The statement welcomes the Government’s proposal to reform the Safeguard Mechanism, while noting that the emissions reductions required under the Safeguard Mechanism are not yet aligned with the reductions needed to limit global warming to 1.5°.

Therefore, the Safeguard Mechanism should be a floor, not a ceiling, to facilities’ decarbonisation activities.

Please see our joint statement here.