Analysis of International Taxonomies and Considerations for Australia
This paper compares taxonomy frameworks used in 13 jurisdictions internationally with similar conomic composition and needs to Australia and identifies lessons to inform the development of an Australian taxonomy. There were 12 taxonomies in place globally and 15 under development when this report was written, representing over 55 per cent of global Gross Domestic Product.
Key findings from the report include:
Several jurisdictions are actively seeking to use taxonomies to facilitate an orderly and just transition to a sustainable economy and track progress through reporting and disclosure.
The need for guidance to allocate capital to credible transition activities is emerging as a key driver in the development of taxonomies internationally and in Australia.
All jurisdictions consulted have emphasised the need to ensure the taxonomy is science-based and credible.
International interoperability can be achieved while taking into account Australia’s unique economic circumstances and starting position
To provide technical input to the taxonomy project, ASFI brought together an expert group of 55 members and observers from across the finance sector including from banking, consulting, superannuation, asset management, private equity, ESG market specialists, academics, and international taxonomy experts, as well as key financial industry peaks and Australian governments and regulators.
Additionally, ASFI has collaborated with jurisdictions across the region and in Europe and North America, and are having ongoing conversations with them to share information, approaches and lessons learned.