Taxonomy Expansion
ASFI is exploring the expansion of the Australian taxonomy beyond climate mitigation to ensure capital flows support broader environmental and social objectives.
How the Australian Taxonomy could expand to include nature-related objectives
ASFI’s first taxonomy expansion research report — Integrating Nature into Finance — was commissioned by the Department of Climate Change, Energy, the Environment and Water (DCCEEW), with strategic support from the Commonwealth Treasury and the Department of Agriculture, Fisheries and Forestry (DAFF), to explore how the taxonomy could expand to include nature-related objectives.
The report explores science-based methods for developing draft taxonomy nature criteria for agriculture, forestry and land management, providing a pathway for capital to flow into practices that protect biodiversity, strengthen agricultural productivity and build long-term resilience.
Research was guided by senior officials from Treasury, DCCEEW and the Department of Agriculture, with input from major agricultural lenders, including the world's leading specialist bank for food and agribusiness Rabobank, financial institutions, superannuation funds, First Nations organisations, and leading environmental groups.
This rigorous process has ensured that the research outcomes reflect diverse expertise and exhibit broad market credibility. It marks an important step toward integrating nature-related objectives into financial decision-making and supporting Australia's commitments under the Kunming-Montreal Global Biodiversity Framework and Australia’s Strategy for Nature 2024-2030.
