Bold pan to reshape Australia’s financial system
Australia's financial services sector has come together in an unprecedented coalition to promote a transformation of the country's financial system to prioritise prosperity for all, meet 21st century sustainability challenges, and position Australia more competitively within international markets.
The Australian Sustainable Finance Initiative (ASFI) – comprising 80 organisations across major banks, insurers, super funds, civil society, and stakeholders – released its roadmap this week, setting out a bold plan to align Australia’s financial system to support a thriving Australian society, a healthy environment and a strong and prosperous economy.
The roadmap calls for financial system participants to embed sustainability into their organisation’s purpose, strategy and leadership, and to support the transition of the economy to net zero emissions by 2050, consistent with international conventions including the Paris Agreement and the UN Sustainable Development Goals.
The roadmap makes 37 recommendations that will enable the financial services sector, together with regulators and governments, to strengthen Australia’s financial system with the aim of recovering from the impacts of COVID-19 and delivering a transition to a net zero, resource-efficient and inclusive economy.
ASFI co-chair Jacki Johnson said “The roadmap signifies a step change in how the finance sector does business. It provides a path towards a financial system that is better prepared to face future risks and shocks, such as a changing climate; to meet the current needs of Australians while delivering on long-term needs for a sustainable future; to enhance financial inclusion and well-being of all Australians, including our most vulnerable; and to direct capital to where it is most needed.”
“We are seeking to re-orient capital – where capital is lent, what it insures and where it is invested – to supporting and building value today while strengthening the economic, natural and social assets that underpin our long term prosperity” said Ms Johnson.
The Roadmap’s 37 recommendations are focused on:
1. Embedding sustainability into leadership.
2. Integrating sustainability into practice.
3. Enabling resilience for all Australians.
4. Building sustainable finance markets.
The Australian Sustainable Finance Roadmap report can be found here: https://www.sustainablefinance.org.au/roadmap
Do you trust the finance sector to pursue goals in the public interest or do you think they are only focused on profit?
It would be just marvellous if there was veracity in this.
It's so hard to have hope at all when, almost daily now, we hear about yet more corruption . And of course the rich seem always to walk away with the names of their crimes watered down.... their "mistakes : Oops, I made a mistake and now I have to pay back $1.3million. I didn't do anything wrong enough for a jail sentence.