Taxonomy Development: Governance and Oversight

The development of the Australian Taxonomy (2023-2025) was supported by a structured governance framework, with oversight from regulators and input from experts and stakeholders across the financial system.

The Taxonomy’s development was overseen by the Australian Treasury and financial regulators. It drew on the expertise of 25 of Australia’s most experienced sustainability and finance leaders, 84 technical advisory members, and over 170 submissions received across two rounds of public consultation.

On this page

  1. Taxonomy Project Governance Overview

  2. Australian Council of Financial Regulators’ Climate Working Group

  3. The Taxonomy Technical Expert Group (TTEG)

  4. Taxonomy Advisory Groups (TAGs)

  5. Other stakeholder engagement

Taxonomy development governance overview

The governance structures, roles and information flows supporting the development of the Australian Sustainable Finance Taxonomy.

Taxonomy Development: Governance and Oversight

Australian Council of Financial Regulators’ Climate Working Group

The Council of Financial Regulators’ Climate Working Group Taxonomy Subgroup (CWG) set the terms of reference and design parameters for the initial phase of taxonomy development.

The Council of Financial Regulators’ Climate Working Group Taxonomy Subgroup (CWG)  provided governance oversight for this phase of the Australian Taxonomy’s development, as part of its role supporting the development and implementation of the Government’s Sustainable Finance Strategy.

The CWG and ASFI agreed on a term of reference, which set out the key design principles and outputs for the initial development phase.

CWG Decision Minutes

Decision Minute: CFR Taxonomy CWG Subgroup
Read the minutes here
Proposing priority sectors for development
Read the minutes here
Finalisation of priority sectors
Read the minutes here

Taxonomy Technical Expert Group

Twenty-five senior sustainability leaders were appointed to the independent decision-making body for the taxonomy: the Taxonomy Technical Expert Group (TTEG)

With endorsement from the CWG, ASFI established a Technical Expert Group (TTEG) through an open expression of interest process.

The TTEG comprised 25 experts in sustainable finance; whole-of-economy decarbonisation; climate and environmental science and policy; human rights; and Indigenous rights and perspectives.

The TTEG provided strategic direction over, input into and endorsement of the Australian Taxonomy. The TTEG collectively represented a mix of skills and experience that were critical to informing the Taxonomy’s development.

The TTEG was co-chaired by

  • Guy Debelle, former Deputy Governor of the Reserve Bank of Australia and former Chair of the Australian Council of Financial Regulators’ Climate Working Group
  • Emma Herd, who has deep expertise in developing, implementing and assessing sustainable finance taxonomies, including leading the Taxonomy technical team that worked with ASFI on the initial design considerations and transition methodology for an Australian Taxonomy.

 

Resources

TTEG Media Release
Read the release here
TTEG Member List
Read the Members List here
TTEG Conflicts of Interest Policy
Read the Conflicts of Interest Policy here
TTEG Stakeholder Engagement Register
Read the Stakeholder Engagement Register here
TTEG Register of Interests
Read the Register of Interests here
TTEG Charter
Read the Charter here
TTEG Terms of Reference
Read the Terms of Reference here

Taxonomy Advisory Groups

The Australian Taxonomy Advisory Groups brought together key experts from across policy, academia, civil society and industry to contribute technical insights and advice.

Taxonomy advisory groups provided technical input into and advice on the work prepared by ASFI and its technical partners, led by the Climate Bonds Initiative, before it was presented to the TTEG for consideration and endorsement. The taxonomy advisory groups helped shape key criteria:

Technical screening criteria for climate change mitigation across the six economic sectors prioritised for development.

Do No Significant Harm criteria to ensure economic activities contributing to climate mitigation do not significantly harm other environmental objectives.

Minimum Social Safeguards designed to ensure that economic activities classified as "green" or "transition" do not cause adverse social outcomes.

The taxonomy advisory groups were constituted by ASFI through an expression of interest process.

They did not have decision-making powers over the taxonomy’s development, but were positioned to contribute expertise and valuable input at critical stages of the taxonomy’s development.

View the Taxonomy Advisory Group membership list.

Other Stakeholder Engagement

 

ASFI engaged with key stakeholder groups over the course of the Australian Taxonomy’s development in a targeted manner.

ASFI engagement was consistent with the Australian Taxonomy’s design principles of usability, interoperability, credibility and prioritisation for impact.

The purpose of engaging with stakeholders on the Australian Taxonomy’s design and development was to: 

  • seek diverse and informed input, including technical input, to optimise taxonomy outputs;  

  • ensure stakeholders affected by the Taxonomy are properly consulted and given the opportunity to provide input on matters of relevance to them; and  

  • socialise the Taxonomy with a diversity of stakeholder groups and foster understanding and alignment in relation to its use and objectives. 

As part of this engagement, ASFI conducted two rounds of public consultation. More information on public consultation can be accessed here.

The full stakeholder engagement strategy for the Australian Taxonomy’s development can be accessed here.