Nature Finance
Foundational work to support the integration of nature-related risks, dependencies and value considerations into financial decision-making across the Australian financial system.
Our Work
There is growing recognition of the dependence and impacts of economic activity and productivity on our natural environment, including biodiversity and natural ecosystems.
ASFI’s Sustainable Finance Action Plan recognises the importance of natural capital to a resilient and sustainable economy.
It also makes several recommendations that will enable the finance sector to recognise, value and incorporate nature into capital allocation decisions and risk analysis.
Nature Research
The Valuing Natural Capital program
The Valuing Natural Capital (VNC) program was a two-year cross-sector partnership (July 2023 – July 2025) that brought together stakeholders from finance, agriculture, science, and government to accelerate the integration of nature considerations into Australia’s financial system.
Delivered in collaboration with Macdoch Foundation’s Farming for the Future initiative, the program focused on exploring practical methods to recognise and incorporate the value of nature, in financial decision-making.
The program supported financial institutions in better understanding how changes in nature condition influence financial outcomes such as productivity, profitability, and risk exposure in agricultural businesses.
Through the establishment of ASFI’s Natural Capital Advisory Group (NCAG), the program provided a key platform for building consensus on the ambitions, needs, and priorities for integrating nature considerations into financial decision-making. It also helped identify critical barriers and enablers to integration and contributed to shaping a practical pathway for continued progress.
By fostering cross-sector alignment and shared understanding, the program laid important groundwork for advancing a more resilient, productive, and sustainable land sector.
The Natural Capital Advisory Group (NGAC)
The Natural Capital Advisory Group (NCAG) contributed to the Valuing Natural Capital program by exploring the insights from Farming for the Future’s research through a financial sector lens, helping to collaboratively identify and address the needs of financial institutions in relation to nature.
Participating institutions:
Australia and New Zealand Banking Group (ANZ),
Bank Australia
Bendigo and Adelaide Bank
Clean Energy Finance Corporation (CEFC)
Commonwealth Bank of Australia (CBA)
Mercer
National Australia Bank (NAB)
New Forests
Queensland Investment Corporation (QIC)
Rabobank
Rest Super
Suncorp Bank
Westpac
Observing Institutions:
Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES)
Australian Bureau of Statistics (ABS),
Certified Practising Accountants Australia (CPA),
Chartered Accountants Australia & New Zealand (CA ANZ),
Commonwealth Scientific and Industrial Research Organisation (CSIRO),
National Farmers’ Federation (NFF), and
Australian Government representatives from:
the Department of Agriculture, Forestry and Fisheries (DAFF)
The Department of Climate Change, Energy, the Environment and Water (DCCEEW).
Work Programs
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Public Policy
ASFI is actively engaging with the Australian Government on a range of policy areas to support the flow of finance and investment for climate, nature, and social outcomes in Australia.
Leveraging our deep public sector expertise and strong government relationships, ASFI drives and supports policy reform for better climate and sustainability outcomes.
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Sustainability Standards and Practice
ASFI’s standards and practice work predominantly supports Australian financial institutions to pilot the Australian Sustainable Finance Taxonomy in practice.
ASFI works in partnership with the Australian Government and members to inform future guidance and uses, and on the international harmonisation of taxonomies.
ASFI is actively promoting Australia's approach to green and transition finance through a range of bilateral and multilateral fora, and as technical and private sector partner to the Australian Government.
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Blended Finance
Blended finance, where public investment helps de-risk projects and crowd in private investment, is a key tool for decarbonisation and climate resilience. Effective blended finance structures to accelerate the flow of capital into projects and organisations that deliver sustainable outcomes.
This work program is being undertaken in partnership with Government, in particular the Department of Foreign Affairs and Trade (DFAT), and the ACCC has granted ASFI formal authorisation to work with institutions and governments on co-designing new blended finance structures.
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Leadership and Capability
ASFI is committed to embedding sustainability into leadership and practice across the financial services landscape, and is actively working to unlock financial institution skills, leadership, and ambition on sustainable finance.
Leadership is critical to sharpening organisational focus on sustainability, driving internal buy-in and culture, and facilitating action across the real economy. ASFI works in partnership with the Australian Government, members and others to deliver targeted courses, mentor programs, working groups, member delegations and a Capability Framework.
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First Nations and Finance
ASFI is positioned to act as a partner to First Nations-led businesses, Peaks, projects, Nations and communities, as lasting impact depends on First Nations leadership being centred and supported, not substituted.
This approach embeds First Nations rights in financial decision-making; increases access to finance and support for First Nations communities and businesses; elevates First Nations perspectives and priorities across Australia’s financial system; and ensures more First Nations peoples in Australia benefit from economic self-determination.
