ASFI Newsletter - June
In May the ASFI team hosted our members and representatives from across the finance sector, industry groups, and government for two special sustainable finance events. In this edition of our newsletter, we reflect on these engagements and further progress made over the past month.
On Thursday May 25, we had the pleasure of hearing from an expert panel of senior government officials and sustainable finance specialists on sustainable finance trends and opportunities for policymakers and private capital in the Asia-Pacific. The conversation covered the state of sustainable finance in the Asia-Pacific, the barriers to private capital, and the tools to unlock it. Nick Burrough set the scene with data that showed that finance is flowing, but at a fraction of the scale required. Warren Tease and Linda Romanovska spoke to the power of taxonomies to direct finance and invest, and the challenges of reaching inter-operability between national frameworks. Ritesh Thakkar outlined the potential of blended finance to help where enabling environments – including sustainable finance policy – are not yet fully developed. And Australia’s Ambassador for the Environment Kristin Tilley underscored the Australian Government’s commitment to placing climate at the heart of its foreign policy, with mobilising private finance for the Asia-Pacific playing a key role. A huge thank you to Bloomberg for hosting this event with us, and to our partners at the European Union Climate Dialogues Project and Climate-KIC Australia.
Panelists (left to right): Kristy Graham (CEO, ASFI) [moderator], Warren Tease (Chief Advisor, Financial Markets, Commonwealth Treasury), Linda Romanovska (Independent Member of the EU Platform on Sustainable Finance), Kristin Tilley (Australia’s Climate Change Ambassador), Ritesh Thakkar (Senior Advisor Asia Pacific, Convergence Blended Finance) [on screen].Friday May 26 saw ASFI bring together our members and representatives from across the finance sector, government and industry to discuss ‘the what, why and how of transition plans’. Our panel featured UK Transition Plan Taskforce (TPT) Team Lead Jacques Morris, IFRS Foundation’s Mardi McBrien, Commonwealth Treasury’s Rebecca McCallum, EY’s Emma Herd, NAB’s Connie Sokaris and Metrics Credit Partners’ Alison Chan. The insights shared underscored that transition plans are no longer a “nice to have” but a “necessity”, and the clear support for the role of guidance in supporting the standardisation and rigor of transition plans. In case you missed it, please see the event recording. Many thanks to NAB for hosting this event with us, the Energy Efficiency Council and Climateworks Centre for bringing Jacques Morris to Australia, and the expert audience who joined us in person and online.
Panelists (left to right): Kristy Graham (CEO, ASFI) [moderator], Jacques Morris (Secretariat Team Lead, UK TPT), Mardi McBrien (Chief of Strategic Affairs and Capacity Building, IFRS), Emma Herd (Partner, Climate Change and Sustainability, EY Oceania), Rebecca McCallum (Director, Commonwealth Treasury), Alison Chan (Investment Director – Sustainable Finance, Metrics Credit Partners), Connie Sokaris (Executive, Corporate Finance, NAB).Earlier in the month, the 2023-24 federal budget delivered a lot to digest on sustainable finance. You can find ASFI’s 2023-24 Federal Budget Blog, where we unpacked the announcements to give you the highlights (roses), lowlights (thorns), and opportunities (rosebuds) for accelerating sustainable finance in Australia and the region.
ASFI 2023 Work Program
Enabling Sustainable Finance
Sustainable Finance Taxonomy
Following the Government’s decision in April to co-fund ASFI to lead the development of an Australian sustainable finance taxonomy, we have been conducting further consultation and analysis on the design of the transition methodology, through the development of real-world case studies that are applicable to different segments of the financial sector.
ASFI is also continuing to showcase international developments in sustainable finance taxonomies through our taxonomy webinar series. Canadian sustainable finance experts Barbara Zvan (University Pension Plan Ontario) and Kathy Bardswick (Canadian Sustainable Finance Action Council) joined us last week to share their insights into the key recommendations for the development of a Canadian Taxonomy, as set out in the Canadian Taxonomy Roadmap Report. You can view the session here.
In the next week, ASFI will be calling for expressions of interest from senior leaders across Australia with expertise in sustainable finance, climate science, industry, policy and including Indigenous representation to join the Australian Taxonomy Technical Expert Group (TTEG), which will oversee the development of the taxonomy under the guidance of the Council of Financial Regulators Climate Working Group. Please keep an eye on your inbox, as well as our LinkedIn and website for further information about this opportunity.
TNFD and Natural Capital
ASFI is continuing to engage with our members on piloting and engagement opportunities following the release of the Taskforce on Nature-related Financial Disclosures’ (TNFD) final beta framework (v0.4) and are working through a forward workplan focused on capacity uplift, and implementation.
ASFI and Chartered Accountants Australia and New Zealand, have provided feedback to the TNFD via a joint submission. The feedback is focused on ensuring useability and uptake of the framework which will be critical to the TNFD achieving its objectives. You can view the submission here.
Policy Engagement
As noted, you can find ASFI’s 2023-24 Federal Budget Blog, where we unpack the 2023-24 federal budget announced in May.
ASFI was delighted to host experts from the Department of Treasury at our events last week. Chief Advisor Warren Tease gave an updated on the Government’s sustainable finance strategy. We are expecting a consultation paper in August. And Rebecca McCallum joined our Transition Plan event panel, promising a position paper on Mandatory Climate Disclosure imminently.
We are also expecting the Australian Government’s Development Finance Review to be released soon. This will outline the Department of Foreign Affairs and Trade’s findings on options to use development finance mechanisms to support Australia’s foreign policy, trade, security and development objectives particularly in the Asia-Pacific region. ASFI’s submission to the Review noted that Australia’s security, prosperity and wellbeing is inextricably linked to that of our region. It recommended that the Government establish a dedicated ‘blended finance’ capability to enable investment opportunities for private capital that are aligned with Australian Government objectives including in climate and clean energy, and sustainable development.
First Nations and Finance
In case you missed it, in early April the ASFI Board approved the concept note for this work program. ASFI’s work program will focus on:
Integrating Indigenous perspectives into sustainable finance through all of ASFI’s work programs.
A flagship project to improve disclosures of First Nations outcomes and impacts. Better disclosure will enable financial institutions to manage risks and support better outcomes for First Nations people, enabling economic self-determination through their portfolios, loan books and underwriting activities. This work would build on work underway with investors to include better standards, reporting and assurance of free, prior and informed consent, Indigenous employment, Indigenous leadership and representation, Indigenous customer outcomes and the economic, social and cultural outcomes of financial products and services for Indigenous businesses and organisations.
Coordinator, convenor and connector of work happening across institutional finance in this area, to support development of additional flagship projects over time, for example to support Native Title holders to build and create wealth as financial services clients.
Policy and regulator engagement to support delivery of flagship projects and implementation of Roadmap recommendations.
We have now commenced the RAP process for ASFI and are looking to raise project funding to bring on an Indigenous Project Lead for this work. Please get in touch with Kristy if you’d like to partner with us on this work.
Sustainable Finance Solutions
ASFI’s Program Lead - Policy and Sustainable Finance Solutions, Purdie Bowden, attended the National Energy Efficiency Conference on 22 and 23 August in Sydney. The forum showcased the significant developments from Commonwealth Government on residential energy efficiency as well as featuring sessions on industrial energy efficiency and more.
Events and Opportunities
We welcome your participation in upcoming public events hosted by ASFI. You can also learn about other upcoming industry events via our Sustainable Finance Events Calendar.
Events
Save the date October 24: Australian Sustainable Finance Summit, Hilton Hotel Sydney. 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. A limited number of sponsorship opportunities are now remaining, please contact Natalie for our sponsorship prospectus or to discuss further.
In case you missed it
ASFI Webinar: Key insights on the Canadian Taxonomy Roadmap. Watch as Kathy Bardswick, Chair at the Canadian Sustainable Finance Action Council and Barbara Zvan, President and Chief Executive Officer at University Pension Plan Ontario, discuss the key recommendations for the development of a Canadian Taxonomy set out in the Canadian Taxonomy Roadmap Report.
Transition Plans: the what, why and how. Watch this discussion forum on the role of corporate transition plans in supporting the net zero transition with Jacques Morris from the UK Transition Plan Taskforce (TPT). Jacques was joined by an expert panel to explore the relevance of transition plans for the Australian context, how transition plan requirements could fit into the emerging sustainable finance policy landscape, and what is needed to support firms and financial institutions to produce high quality transition plans that will help them to thrive in the net zero transition.
Job Opportunities
Don’t forget to subscribe to ASFI’s ‘Sustainable Finance Job Alerts’, where you receive updates about new opportunities available on our Sustainable Finance Jobs Board. If there are job opportunities you would like to advertise to ASFI’s network of sustainable finance, responsible investment and sustainability experts and practitioners, please complete this form.
Current job opportunities available: