ASFI is a not-for-profit organisation representing 41 of the country’s leading financial institutions – including banks, super funds, insurers and asset managers – which collectively manage more than AU$37 trillion in assets. Together, ASFI members are committed to integrating sustainability into finance, investment and risk management.
ASFI’s new Action Plan builds on the ASFI Roadmap released in 2020, offering a refreshed set of priorities and actions that reflect recent policy shifts, market developments and community expectations. It outlines 26 priority actions across eight key domains, including emissions reduction, climate resilience, First Nations economic self-determination, and financial inclusion.
Among the Plan’s most significant recommendations are:
- The expansion of Australia’s mandatory climate disclosure regime
- Clearer rules for sustainability product labelling
- Reforms to competition law to encourage collaborative sustainability efforts
- The integration of sustainability considerations into directors’ duties under the Corporations Act
Stewart Moore, the Founder and CEO of leading sustainability benchmarking, certification and advisory group EarthCheck, says the Action Plan reflects how sustainability is becoming embedded in the foundations of the financial system.
“Australia’s financial system is undergoing a structural shift,” Moore says. “There is now a clear expectation that businesses demonstrate real accountability in their environmental, social and governance performance.
“The Action Plan signals that sustainable finance is now central to how capital is allocated, risk is managed and performance is measured – and businesses that act early will be better placed to demonstrate leadership and resilience.”
The Action Plan reinforces the role of government in shaping confidence through procurement, policy and investment leadership, while encouraging financial institutions to enable the transition by financing emissions reductions, supporting climate adaptation and mobilising capital for nature-positive outcomes.
Notably, the Action Plan supports the phased rollout of Australia’s mandatory climate-related financial disclosure regime, which commenced this year. ASFI has identified this regime, along with associated regulatory guidance and accounting standards, as a sign of strong national progress in sustainable finance reform.
To help businesses understand these new disclosure obligations, EarthCheck partnered with global law firm K&L Gates earlier this year to publish a briefing paper on the climate-related financial disclosure regime.
The paper outlines which businesses must report, how the requirements are being phased in, and the flow-on impacts for small and mid-sized enterprises across the value chain.
With a strong electoral mandate, the Albanese Government is positioned to continue driving sustainability reform in Australia, creating a stable policy environment for businesses looking to align with evolving national and global standards.
EarthCheck and K&L Gates will continue to monitor developments in Australia’s climate and sustainability policy landscape, and support businesses to prepare, adapt and respond with credible, science-backed data and governance.
Organisations looking to build ESG capability or respond to new disclosure expectations are encouraged to explore EarthCheck’s ESG advisory services and download the joint briefing paper with K&L Gates.
