Australia policy
Australia’s financial sector is increasingly attuned to the urgent sustainability risks threatening the strength and stability of the country’s economy. To keep pace with industry expectations and global developments, Australian policy and regulatory frameworks will need to evolve to meet these challenges.
Comprehensive consideration of systemic sustainability risks will require strengthened corporate disclosure requirements, clarifications of investor fiduciary duties, and better frameworks for effective stewardship. See further details below of PRI’s work supporting stronger sustainable finance policy in Australia.
Key publications
Latest policy engagements
PRI response to Australia's Strategy for Nature 2019-2030
The PRI welcomes Australia’s update of its Strategy for Nature 2019-2030 to align with the goals and targets of the Kunming-Montreal Global Biodiversity Framework (“GBF”). The PRI highlights the importance of taking a holistic approach when integrating climate change considerations into biodiversity policies, to ensure synergies are amplified and trade-offs successfully managed. Furthermore, the PRI makes recommendations on how to enable the alignment of financial flows with the GBF.
PRI response to the Australian Treasury’s consultation on Australia’s Sustainable Finance Strategy
The PRI welcomes the Australian Government’s publication of the Australian Sustainable Finance Strategy. The collection of measures identified within the Strategy represent an important step forward in providing the frameworks, information and tools needed by investors to better integrate sustainability-related risks and impacts into their activities, and to contribute to Australia’s net zero transition.
Response to Treasury’s second consultation on implementing mandatory climate disclosures
The PRI welcomes Treasury’s proposal to implement mandatory climate-related disclosures aligned with IFRS S2 Climate-relate Disclosure Standards. The PRI also supports the six principles underpinning Treasury’s plan although considers improvements should be made to meet these principles and generate the comprehensive disclosures that investors need. Accordingly, the PRI makes several recommendations including in relation to covered entities, phased timing, scenario analysis, and transition plans.
The PRI responded to the consultation document issued by the Climate Change Authority on its advice for the next Australian Nationally Determine Contribution among other matters.
The PRI-Coordinated Collaborative Sovereign Engagement on Climate Change recommends the benefits of an accelerated, orderly and Paris-aligned NDC for Australia’s sovereign climate risk profile, economic competitiveness and future cost of capital should be reflected by the Authority in its final advice to the Federal Government.
Legislating a purpose for superannuation
The PRI welcomes the Australian Government’s proposal to legislate an objective for the superannuation system, which includes the concept of sustainability. However, the PRI highlights that the proposed definition of “sustainable” is relatively narrow and potentially misaligned with existing duties. Accordingly, the PRI recommended the definition of sustainable better take into account the superannuation system’s reliance on a strong economy and its role in supporting the economy’s stability, as well as the environmental and social systems the economy relies upon.
Webinars
A Legal Framework for Impact AUS: Can Investors Pursue Sustainability Outcomes?
Hosted by the PRI, the webinar will present the key findings from the Australian annex of the report “A Legal Framework for Impact”, which was authored by Freshfields Bruckhaus Deringer and commissioned by The Generation Foundation, PRI, and UNEP FI.
Further resources
Policy reports
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Consultations and letters
Search our policy consultations and letters
A Legal Framework for Impact
It is crucial that assessing and accounting for sustainability impact becomes a core part of investment activity. That’s why PRI, UNEP FI and The Generation Foundation are leading our work programme “A Legal Framework for Impact.”
- The PRI is an investor initiative in partnership with UNEP Finance Initiative and UN Global Compact.
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