Australia’s financial system has an important role to play in building a future that provides Australians with economic security, a resilient environment in which to live, and equal opportunity to thrive and prosper.
That’s at the heart of the Australian Sustainable Finance Roadmap, a project that brought together financial system participants – including University of Technology Sydney researchers – in an unprecedented coalition to map out a transformation of the country’s financial system to better meet 21st century challenges.
The Roadmap was developed with assistance from the UTS Institute for Sustainable Futures and UTS Business School, along with input from more than 80 industry organisations. It sets out 37 recommendations to enable the financial services sector to deliver a sustainable and resilient economy that prioritises wellbeing and social equity, protection of the environment and a transition to net zero emissions.
The Roadmap has been an extraordinary collaboration
Among other things, the recommendations address the need for leadership from the top of financial institutions, the integration of sustainability into financial sector practice, the establishment of community finance that can be accessed by groups such social enterprises, and collaboration on development of a sustainable capital market.
“The Australian Sustainable Finance Roadmap provides guidance to a healthier, more respectful, more prosperous and more equitable economy and community,” says Professor Robynne Quiggin, Associate Dean, Indigenous Leadership and Engagement, at UTS Business School and a member of the steering committee for the Australian Sustainable Finance Initiative (ASFI). “The Roadmap has been an extraordinary collaboration of industry expertise.”
Finance researcher Dr Deborah Cotton, a member of one of the ASFI working parties, says it’s significant that the Roadmap is being led by Australia’s financial institutions, rather than waiting for government as has happened in other jurisdictions. “Surveys of the general public around climate change show that over 75 per cent of people believe it’s a real issue that needs to be dealt with. So it’s definitely consumer-led and business- led. The participants come from an enormous range of financial institutions,” Dr Cotton says.
“The insurance sector in particular is a key industry driver,” Professor Quiggin adds. “Insurance companies face difficulties in maintaining effective insurance models in the face of bushfires and other environmental disasters that are predicted to worsen with climate change.”
Dr Scott Kelly, an Adjunct Associate Professor with the UTS Institute for Sustainable Futures and a member of an ASFI working party, says: “I think this roadmap really represents some unique opportunities for the financial sector. If the sector takes this roadmap and starts implementing these recommendations, I think it will start putting Australia on a trajectory towards a sustainable future.”
Australian Sustainable Finance Roadmap: sustainablefinance.org.au
Listen to Dr Deborah Cotton, Dr Scott Kelly and Professor Robynne Quiggin discuss the Sustainable Finance Roadmap on the Think: Business Futures podcast (opens Whooshkaa)
UTS Experts: Robynne Quiggin, Deborah Cotton