The Australian Sustainable Finance Institute (ASFI) is an unprecedented collaboration formed to help shape an Australian economy that prioritises human well-being, social equity and environmental protection, while underpinning financial system resilience and stability. ASFI brings together leaders spanning Australia’s major banks, superannuation funds, insurance companies, financial sector peak bodies and academia to develop a Sustainable Finance Roadmap, in consultation with diverse sectors and stakeholders.
The roadmap, to be launched in 2020, will recommend pathways, policies and frameworks to enable the financial services sector to contribute more systematically to the transition to a more resilient and sustainable economy, consistent with global goals such as the UN Sustainable Development Goals and the Paris Agreement on climate change.
Its objectives include:
1. Mobilising capital to deliver on our national and global sustainable development goals commensurable with science-based targets and informed by international conventions, treaties and norms;
2. Enhancing the sustainability, resilience and stability of the financial system by embedding sustainability and human rights considerations into financial markets, products and services to better account for and manage risk and impact;
3. Ensuring better informed financial decision making by enhancing disclosures and transparency in financial markets for enhanced valuation of environmental and social risks and opportunities; and
4. Delivering a financial system that meets community and consumer expectations around sustainability and norms including informed engagement, improved and informed choice, effective disclosures and client interests while enhancing financial inclusion and financial well-being.
ASFI was born out of industry discussions which took place at the end of 2017, including the Financing a Resilient and Sustainable Economy conference held in July 2018 in Sydney. At this event, representatives from academia, government, the finance sector, industry bodies, regulators and civil society discussed the importance of aligning the finance sector in Australia and New Zealand with the delivery of resilient and sustainable economies, including drawing on international developments. The conference reinforced strong support for the finance sector to lead a sustainable finance roadmap initiative in Australia, with international and regional peak bodies pledging commitment to help deliver the Roadmap (see joint statement).
Read ASFI’s Terms of Reference here.
What is sustainable finance?
The health, sustainability and stability of our economy is inextricably linked with the health, sustainability and stability of our people, society and the natural systems on which we all depend. For Australia to continue to prosper in the 21st century we need to realign the systems that underpin our economy to support human well-being, social equity and our environment. Australia has demonstrated its commitment through ratification of the Paris Agreement on climate change, the adoption of the Sustainable Development Goals, as well as long-standing commitments to uphold UN human rights obligations and other relevant international conventions. To deliver on these commitments while meeting the expectations of Australians now and into the future, we need a financial system that is aligned to these commitments.
Globally, momentum is building to better align finance with our sustainable development needs. Countries and regions around the world are setting out Sustainable Finance Roadmaps that provide pathways and policy signals and set frameworks to enable the finance sector to contribute more systematically to the transition to a more resilient and sustainable economy, consistent with these global goals. Our work is modelled on the work and progress internationally to align the finance sector with the goals of a resilient and sustainable economy, including the European Union’s High Level Expert Group on Sustainable Finance and the UK’s Green Finance Taskforce.
Who are we?
The Australian Sustainable Finance Institute comprises a Steering Committee with senior financial services, academic and civil society representatives, charged with overseeing the delivery of the Australian Sustainable Finance Roadmap as part of the Initiative. Working groups have also been established to bring in specific expertise, engage different parts of society and gather and distil diverse inputs to help frame understanding of the challenges and possible steps for the Roadmap.