ASFI February Update
ASFI is proud to share that we have finalised our Strategy and Business plan for 2023, following board approval. Our 2023 Strategy is informed by evidence from ASFI’s annual Progress Tracker report, released in the final quarter of last year; member and other stakeholder consultations; and Advisory Committee input. You can find our 2023 Strategy document here.
At the start of this month, ASFI held a public webinar and a number of industry and finance sector events on the key design elements and recommendations of our second taxonomy paper. We were pleased to receive over 350 attendee registrations for the event and thank all those who attended for your interest and involvement in the development of an Australian sustainable finance taxonomy. If you were unable to make it to the webinar, you can access a recording via our website here. Consultations on the recommendations paper have now closed, and we will release the final paper in March.
Over the past month, ASFI has been actively involved in policy engagement on a number of proposed Government reforms. We published both our submission on the National Reconstruction Fund, which maps how the fund could be designed and implemented, and our submission on the Government’s Climate-related Disclosures consultation, which signals our support for a mandatory disclosure framework. Additionally, we were pleased to collaborate with Chartered Accountants ANZ and 9 other peak bodies on a joint submission to the disclosures framework consultation. Last week, we also published submissions on the Nature Repair Market Bill and the Australian Government’s proposed Safeguard Mechanism Reform. Further information on each of these submissions is included in our ‘Enabling Sustainable Finance’ wrap-up below.
ASFI is pleased to welcome the newest addition to our Board, Professor Robynne Quiggin. Robynne is a member of the Wiradjuri nation of central western New South Wales. She has lived and worked in Sydney, practicing as a solicitor and consultant for 15 years with a focus on legal, compliance and policy areas of relevance to Indigenous Australians including human rights, financial inclusion, financial services, consumer issues, governance, the arts and heritage. She Chairs the board of the Aboriginal Housing Office and Westpac’s Indigenous Advisory Committee, and is Pro-Vice Chancellor, Indigenous Leadership and Engagement at the University of Technology Sydney. We are excited to have Robynne’s skills, expertise and perspectives joining the Board, particularly as we embark on a new work program to integrate First Nations people, perspectives and outcomes into finance.
Following the success of our inaugural Australian Sustainable Finance Summit in 2022, we are excited to announce our second annual Summit will be held on Tuesday October 24 at the Hilton Hotel in Sydney. This year, Australia’s premier event in sustainable finance will bring together leaders from across finance, policy, and civil society to share their insights and identify opportunities to accelerate progress. Early bird tickets will go on sale soon – keep an eye on your inbox.
ASFI 2023 Work Program
Enabling Sustainable Finance
Sustainable Finance Taxonomy
During January and February this year, we facilitated a series of workshops, public webinars, and briefings on the recommendations paper for the design of an Australian Taxonomy.
As outlined above, consultation on our recommendations paper has now closed and we look forward to the release of the final paper this March.
In parallel to our consultation process, we are continuing to engage with government on the next steps for the development of an Australian Taxonomy, in line with the implementation roadmap set out in our report.
TNFD and Natural Capital
Last week, ASFI made a submission on the Australian Government’s Nature Repair Market Bill. ASFI supports the government developing a robust, high-integrity market framework that would enable funding and investment in nature protection, restoration, and enhancement with the ultimate objective of achieving net positive gains for Australia’s natural environment. In our submission we highlight that a nature market framework is necessary but not sufficient to re-direct financial flows towards nature positive outcomes and outline the key enabling environment and market design features that could drive investment in nature and private sector participation in the market. In the submission we also provide recommendations on the policy guardrails that should be included to ensure market integrity and net gains for nature.
On February 23, ASFI held a member-only briefing on the outcomes of the UN Biodiversity Conference (COP15) from a finance sector perspective, and TNFD. ASFI members heard from Alison McMorrow, who is the head of Australian Biodiversity Policy, and her negotiation team members on the key outcomes from COP 15. We also heard from Arianna Cowling, who is leading the Australian Government's work on TNFD.
Policy Engagement
On February 3, ASFI published our submission on the National Reconstruction Fund, which maps how the fund could be designed and implemented in order to successfully crowd-in private capital and build the market in priority areas. You can view the final submission here.
Earlier this month, we also made a submission on the Government’s Climate-related Disclosures consultation. A robust and workable climate disclosures framework will help to channel more capital into activities consistent with Australia’s national emissions reduction goals. It will form an important pillar of Australia’s broader sustainable finance architecture alongside a sustainable finance taxonomy, science-based sector decarbonisation pathways, strong targets and policies to reach those targets. ASFI’s submission on the Government’s Climate-related Disclosures consultation is available here. ASFI was also pleased to collaborate with Chartered Accountants ANZ and 9 other peak bodies in a joint submission to the disclosures framework consultation.
ASFI has been actively engaging with Government, members, and others across the sector on the Australian Government’s proposed Safeguard Mechanism reforms. Last week, we made a submission on the reforms, which is available here. ASFI welcomes the Government’s commitment to reform the Safeguard Mechanism to require Australia’s largest emitters decarbonise in line with Australia’s climate targets. A credible and robust Safeguard Mechanism will help Australian industry to attract the investment and finance it needs to capitalise on the opportunities of the net zero transition and thrive in a low carbon future.
On February 15 we held a briefing for members with the Department of Climate Change, Energy, the Environment and Water (DCCEEW) to learn more about the Safeguard Mechanism reforms. Yesterday, in partnership with Investor Group on Climate Change (IGCC), ASFI hosted an invite-only panel event with the Hon. Allegra Spender MP, Emma Herd (EY), Katerina Kimmorley (Boundless Earth), and Tennant Reed (AiGroup). At the event, ASFI CEO Kristy Graham moderated a fascinating discussion on the political, industrial and finance dimensions of the Safeguard Mechanism reforms.
ASFI held a briefing for ASFI members on the Sustainable Finance Strategy with the Department of Treasury on February 8, which allowed members an opportunity to learn about the key elements of the proposed strategy and engage in a Q&A session.
Finance Sector Leadership
Supporting Finance Sector Leadership
ASFI’s Leadership Working Group will hold its second meeting next month, focusing on overcoming the capability gap.
Other sessions this year will focus on building a culture of sustainability and leading the sector.
Closing the Sustainable Finance skill gap
As identified in our 2022 Progress Tracker report, there is a capability gap on climate and sustainability within the finance sector which presents a significant challenge to system wide change. As part of our work in 2023, we are currently scoping and assessing what more is needed to support the capability uplift in the sector.
First Nations and Finance
Last week, we held the first meeting of our First Nations Brains Trust Group, where members discussed key priorities in this area for 2023, how ASFI could work with other organisations to accelerate and amplify progress in this area, and next steps.
We look forward to further developing this work stream in 2023, including through the establishment of our First Nations Reference Group, which will work towards delivering on the recommendations in the Roadmap relating to self-determination and reshaping the financial system to better serve First Nations clients and communities.
Sustainable Finance Solutions
On February 23, ASFI held an invite-only industry workshop 'Finance for Home Retrofits', hosted by Allianz insurance. The workshop brought together experts and key stakeholders to explore opportunities to unlock finance for home energy efficiency and electrification. It was excellent to see the strong engagement from across the finance, industry, and policy sectors and agreement we have the tools to make this happen. We look forward to working with partner organisations to take forward key ideas from this event.
Events
There are a range of upcoming member events which we welcome your participation in. You can also learn about other upcoming industry events via our Sustainable Finance Events Calendar.
March 22: Climate Investor Forum, Melbourne. ASFI is proud to support the inaugural Climate Investor Forum, on 22 March at the MCG in Melbourne. The event will showcase world class investment ready companies covering eight key decarbonisation sectors.
October 24: Australian Sustainable Finance Summit. Australia’s premier event in sustainable finance will bring together leaders from across finance, policy, and civil society to share their insights and identify opportunities to accelerate progress. Early bird tickets will go on sale shortly. Please get in touch to learn about sponsorship opportunities.