Australia has followed the lead of Europe, the UK and Canada with the establishment of a new high-level collaboration of industry experts tasked with developing a sustainable finance roadmap for Australia\u2019s economy.<\/p>\n\n\n\n
Launched today as the Australian Sustainable Finance Initiative, the Commonwealth Climate and Law Initiative\u2019s Australian Convenor and Head of Climate Risk Governance at law firm MinterEllison, Sarah Barker, was among the 18 experts from banks, insurers and industry groups appointed to the group\u2019s steering committee. The appointment is recognition of Barker as one of the leading global experts on climate risk governance and the legal implications of climate change for companies and directors.<\/p>\n\n\n\n
Barker said: \u201cIt seems that every day is bringing another new development in sustainable finance and climate-related financial risks. From energy policy, to mining development approvals, prudential and securities regulation, shareholder resolutions and misleading disclosure claims, sustainability and climate change have become relevant to \u2013 and material for \u2013 a broad swathe of sectors across the Australian economy. With an issue this dynamic, it can be difficult for government, regulators and the financial sector to keep track of the implications. Australia joins the growing number of countries taking a proactive approach to building a sustainable finance foundation to their economies to set them up for the immense challenges ahead.\u201d<\/p>\n\n\n\n
The push for Australia to develop its own sustainable finance roadmap came from its financial sector, with over 300 banks, insurers and investors responsible for over A$10 trillion in assets calling for the development of the roadmap at a United Nations Environment Programme Finance Initiative conference in Sydney in June 2018.(1)<\/sup><\/p>\n\n\n\n Earlier this month, the Reserve Bank of Australia joined Australia\u2019s prudential and securities regulators APRA and ASIC in considering the implications of climate change through an overtly economic risk lens when Deputy Governor, Dr Guy Debelle, gave a speech on the relevance of climate change to the bank\u2019s economic modelling processes. Dr Debelle emphasised that climate change is a core consideration in the discharge of its monetary policy on employment and inflation and its financial stability remits.(2)<\/sup> Geoff Summerhayes, Executive Board member at Australia\u2019s prudential regulator APRA, Executive Committee Member of the International Association of Insurance Supervisors and Chair of the Sustainable Insurance Forum, will join as an observer on the steering committee, alongside a representative from the United Nations Environment Programme Finance Initiative.<\/p>\n\n\n\n Barker added: \u201cAustralia\u2019s regulators are in lock-step approaching climate change as a financial risk issue. Investors and consumers across the globe are looking to the finance sector to take an active role in the transition to a low-carbon economy and delivering on the UN Sustainable Development Goals, and Australia is no exception.\u201d<\/p>\n\n\n\n The group\u2019s steering committee has a broad remit to consider what actions will be required by government, regulators and industry alike. The roadmap will set out a suite of recommendations which aim to reshape an Australian financial system that is aligned to the long-term needs of the society, the environment and the economy, in a way that sees capital flowing towards assets supporting a more sustainable economy and away from negatively impactful assets.(3)<\/sup> The steering committee is due to publish the roadmap within 12-18 months, with interim consultation in December.<\/p>\n\n\n\n The CCLI\u2019s UK Convenor and member of the UK Green Finance Taskforce, Dr Ben Caldecott, said: \u201cAustralia has some of the world\u2019s largest pension funds and banks. The Australian financial system can play a critical role in mobilising capital to support the transition to global environmental sustainability, as well as adopt the practices required to properly measure and manage a variety of environment-related risks, including those created by climate change. Doing so will make institutions more resilient and better aligned with the needs of their clients. We need to rebuild trust in the financial system and being more sustainable and more resilient is a key part of that journey.\u201d<\/p>\n\n\n\n ENDS<\/strong><\/p>\n\n\n\n ********<\/p>\n\n\n\n Notes to Editors<\/strong><\/p>\n\n\n\n Australian Sustainable Finance Initiative Steering Committee members:<\/strong><\/p>\n\n\n\n \u2022 Anna Skarbek, CEO \u2013 ClimateWorks<\/p>\n\n\n\n \u2022 Christina Tonkin, Managing Director Loans and Specialised Finance \u2013 Institutional \u2013 ANZ<\/p>\n\n\n\n \u2022 Damien Walsh, Managing Director \u2013 Bank Australia<\/p>\n\n\n\n \u2022 David Atkin, CEO \u2013 Cbus<\/p>\n\n\n\n \u2022 Didier Van Not, General Manager Corporate and Institutional Banking \u2013 Westpac Banking Corporation<\/p>\n\n\n\n \u2022 Emma Herd, CEO \u2013 Investor Group on Climate Change<\/p>\n\n\n\n \u2022 Eric Williamson, Executive General Manager, Corporate Finance \u2013 National Australia Bank<\/p>\n\n\n\n \u2022 Jacki Johnson (Co-Chair), Group Executive People, Performance and Reputation \u2013 Insurance Australia Group<\/p>\n\n\n\n \u2022 John Hewson, Chairman \u2013 Business Council for Sustainable Development Australia<\/p>\n\n\n\n \u2022 Mark Joiner, Chairperson \u2013 QBE Australia & New Zealand<\/p>\n\n\n\n \u2022 Mark Senkevics, Managing Director Head Australia and New Zealand \u2013 Swiss Re<\/p>\n\n\n\n \u2022 Matthew McAdam, Director Asia Pacific \u2013 Principles for Responsible Investment<\/p>\n\n\n\n \u2022 Michael Thorpe, Managing Director Institutional Banking and Markets \u2013 Commonwealth Bank of Australia<\/p>\n\n\n\n \u2022 Phil Vernon, Managing Director \u2013 Australian Ethical Investment<\/p>\n\n\n\n \u2022 Richard Brandweiner, CEO \u2013 Pendal Group<\/p>\n\n\n\n \u2022 Robynne Quiggin, Professor \u2013 University of Technology Sydney, Business School<\/p>\n\n\n\n \u2022 Sarah Barker, Head of Climate Risk Governance \u2013 MinterEllison<\/p>\n\n\n\n \u2022 Simon O\u2019Connor (Co-Chair), CEO \u2013 Responsible Investment Association Australasia<\/p>\n\n\n\n Observers:<\/strong><\/p>\n\n\n\n \u2022 Geoff Summerhayes, Executive Board Member \u2013 APRA, Executive Committee Member \u2013 International Association of Insurance Supervisors, Chair \u2013 Sustainable Insurance Forum<\/p>\n\n\n\n \u2022 Eric Usher, Head of the UN Environment Program Finance Initiative, Economy Division \u2013 UN Environment<\/p>\n\n\n\n (1) For information on the 2018 UNEPFI Conference: Financing a Resilient and Sustainable Economy, see here<\/a>. The Joint Statement from banks, insurers and investors in support of a sustainable finance roadmap released at the conference can be downloaded here<\/a>.<\/p>\n\n\n\n (2). The full transcript of Dr Guy Debelle\u2019s speech is available here<\/a>.<\/p>\n\n\n\n