ANZ case study: Applying the Australian Taxonomy in banking
Australia and New Zealand Banking Group Limited (ANZ)
Organisation Type
Bank
Sustainability Reporting
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Experience piloting the Australian taxonomy
ANZ has used the taxonomy as a practical tool alongside existing sustainable finance frameworks and market principles to assess green asset eligibility.
In practice, the taxonomy has supported more informed customer conversations, added rigour to transaction due diligence, and has helped our teams more clearly articulate the benefits of specific green and transition activities, particularly for transition activities where market guidance has historically been more limited. The release of ASFI’s subsequent taxonomy-aligned Debt Guidance earlier this year has also improved usability by translating the framework into actual financing contexts.
ANZ has supported two customers with early adoption of the taxonomy. In October 2025, Victoria Power Networks voluntarily aligned its inaugural Green Bond to the taxonomy’s Technical Screening Criteria (TSC) and in May 2026, SA Power Networks obtained full taxonomy alignment for its third Green Bond. The assurance process for both transactions highlighted the importance of interoperability of the TSC with other jurisdictions such as the EU taxonomy, and the additional value obtained from evaluation of DNSH and MSS criteria.
Whilst there is additional assurance involved, it provides stronger confidence in the quality of financed projects and intended environmental outcomes, which should pave the way for other borrowers and drive more interest from ESG-focused investors.
The Australian taxonomy’s value for the banking sector
Over time, the taxonomy can support the banking sector by providing a clearer and more consistent basis for assessing sustainable finance opportunities. That can improve comparability across the market and reduce the need for each institution to develop separate approaches. It also has the potential to broaden participation by giving banks a practical framework for financing a wider range of activities, including smaller-scale assets and customer segments such as SMEs.
In that sense, the taxonomy can help embed sustainable finance more systematically into everyday banking activity and impact reporting.
How the Australian taxonomy can support capital allocation for Australia’s transition to net zero
At a system level, the taxonomy can help the finance sector to direct capital towards activities that support decarbonisation across the real economy, including sectors such as Mining, Metals and Minerals, and Agriculture, where sustainable finance has been harder to apply. By setting clearer criteria, it can give financiers and borrowers more confidence to identify eligible opportunities and support investment in transition pathways.
Over time, future development of the taxonomy could strengthen its role further by expanding coverage to areas such as adaptation, resilience, nature positive and circular economy outcomes.