The 2023 Australian Sustainable Finance Progress Tracker shows Australia is heading in the right direction on sustainable finance policy, driven by a step change in leadership from the Australian Government.

The third annual Sustainable Finance Progress Tracker demonstrates progress against a broad range of Australian Sustainable Finance Roadmap recommendations. There is now an average score above a pass (2.6 out of 5) across the 37 recommendations, a rise of 0.6 from the 2022 average.

Australia is moving rapidly from laggard to ‘early follower’ on sustainable finance – advancing a world-leading sustainable finance taxonomy, moving to introduce mandatory climate disclosure for Australian firms from 1 July 2024, and developing a framework for Australia’s first sovereign green bond issuance.

These fundamental pillars of sustainable finance policy will help mainstream climate within Australian financial institutions; allow sustainability-related claims to be substantiated (or debunked); and position Australia to influence the development of international sustainable finance frameworks.

But Progress Tracker results also underscore the task ahead to translate targets and policy into on the ground impact to decarbonise the economy, restore Australia’s natural capital and support greater levels of wellbeing across Australian society. Over the next 12 months, bedding down and supporting implementation of existing reforms will be important. At the same time, the urgency and magnitude of the sustainability challenge demands additional action.