In short
A sustainable finance taxonomy provides common definitions for sustainable economic activities.
It can help direct investment to these activities and support Australia’s path to net zero emissions. It can also help prevent ‘greenwashing’. Greenwashing is where a company makes misleading claims about their environmental outcomes.
Initial development phase
Supported by a Treasury grant, the Australian Sustainable Finance Institute (ASFI) developed a sustainable finance taxonomy.
In this phase ASFI focussed on net zero-aligned criteria in 6 areas:
- electricity generation and supply
- minerals mining and metals
- construction and buildings
- manufacturing and industry
- transport
- agriculture and land.
The taxonomy will also include definitions to support:
- the environment, through ‘do no significant harm’ criteria
- society, through ‘minimum social safeguards’ criteria.
ASFI delivered the taxonomy to Treasury on 14 February 2025.
ASFI will work with government on a joint release by mid-2025, as outlined in the Sustainable Finance Roadmap.
Interim report
ASFI provided Treasury an interim report during development of the taxonomy.
Governance and oversight
The Council of Financial Regulators’ (CFR) Climate Working Group oversaw the development phase.
A Taxonomy Technical Expert Group provided direction and feedback.