Taxonomy Development
The development of the Australian sustainable finance taxonomy for climate change mitigation was a joint industry-government initiative led by the Australian Sustainable Finance Institute (ASFI).
Taxonomy Research and Scoping
Following its establishment in 2021, the Australian Sustainable Finance Institute (ASFI) identified the development of an Australian sustainable finance taxonomy as an immediate, strategic priority for Australia. Between June 2022 and July 2023, ASFI undertook an industry funded and led taxonomy scoping project, with engagement from government and regulators.
This phase of work focused on the key framework design elements for an Australian sustainable finance taxonomy, which you can learn more about here.
Deliverables included:
A scoping paper of international taxonomies, released in October 2022, which analysed Australia’s economic and environmental context, key international taxonomies, and implications for taxonomy development in Australia.
A recommendations paper on the key design elements for an Australian taxonomy finalised in March 2023.
Analysis and case studies to inform the methodology for integrating transition activities in an Australian taxonomy, published in July 2023.
ASFI worked with a Technical Advisory Group (TAG) and broader stakeholders to inform the taxonomy scoping project deliverables. The TAG comprised 56 members and observers from across the finance sector, including from banking, consulting, superannuation, asset management, private equity, ESG market specialists, academics, and international taxonomy experts, as well as key financial industry peaks and Australian governments and regulators.
Additionally, ASFI collaborated with jurisdictions across the region and in Europe and North America and engaged in ongoing conversations with them to share information, approaches and lessons learned.
Developing the Australian Sustainable Finance Taxonomy
The development phase then ran from July 2023 to February 2025. It covered climate change mitigation criteria for six priority economic sectors; a Do No Significant Harm framework; and Minimum Social Safeguards. The six priority sectors in the initial Australian taxonomy are:
Agriculture and land
Minerals, mining and metals
Manufacturing and industry
Electricity generation and supply
Construction and buildings
Transport
The taxonomy’s development was informed by broad-based collaboration and extensive public consultation, underpinned by the principles of credibility, usability, interoperability and prioritisation for impact. You can access more information on the governance and oversight of the taxonomy’s development here.
Governance and insight of the taxonomy’s development drew on the expertise of 25 of some of Australia’s most experienced sustainability leaders and 84 technical advisory members, and was overseen by the Australian Treasury and financial regulators.
The taxonomy was also shaped by more than 170 submissions received across two rounds of public consultation. You can access the taxonomy consultation materials, including public submissions and consultation papers, here.
