The Australian Sustainable Finance Institute (ASFI) recently commenced the development phase of the Australian sustainable finance taxonomy with the appointment of the Taxonomy Technical Expert Group (TTEG).
Twenty-five senior leaders, including Fidelity's Head of Sustainable Investing, Daniela Jaramillo, have been appointed to the independent TTEG.
The TTEG will be co-chaired by Guy Debelle, former Deputy Governor of the Reserve Bank of Australia and former Chair of the Australian Council of Financial Regulators’ Climate Working Group, and Emma Herd, who has deep expertise in developing, implementing and assessing sustainable finance taxonomies, including leading the taxonomy technical team that worked with ASFI on the initial design considerations and transition methodology for an Australian taxonomy.
The TTEG will provide strategic direction over, input into and endorsement of an Australian sustainable finance taxonomy for consideration by government. The TTEG collectively represents a mix of skills and experience that will be critical to informing the taxonomy’s development, including in sustainable finance; whole-of-economy decarbonisation; climate and environmental science and policy; human rights; and Indigenous rights and perspectives.
The taxonomy project is a joint government-industry initiative that will provide a common standard for green and transition finance, helping accelerate the allocation of capital towards sustainable activities to achieve Australia’s net-zero ambitions. Reflecting shared appetite across government, finance and industry for new frameworks to support sustainable finance markets in Australia, ASFI will undertake the initial taxonomy development phase, with co-funding and oversight from the Australian Government.
Over the next 12 to 18 months, the TTEG will provide input into and final approval of climate mitigation taxonomy screening criteria for priority sectors, and associated technical work on data requirements, methodology for incorporating transitional activities, minimum social safeguards and a Do No Significant Harm framework.