RIAA strongly welcomes the Government’s efforts to create a Sustainable Finance Strategy as a pivotal milestone in Australia’s trajectory to net-zero, providing the opportunity to align with global trading partners in transitioning to a sustainable finance framework.

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In RIAA’s view, the key priorities are to:

– integrate First Nations’ voices and knowledge into policy responses from Day 1.

– ensure initiatives such as disclosures and the sustainable finance taxonomy are broadened to encompass non-climate sustainability goals;

– ensure existing industry efforts are incorporated into the proposed product labelling regime;

– remove barriers and deterrents to responsible investment, in particular, the Your Future, Your Super (YFYS) performance test which currently acts as a disincentive to long-term sustainable investment;

– expand portfolio holdings disclosure requirements to managed funds, and to require granular details of holdings; and

– establish an advisory body made up of industry representatives to help track progress of the Strategy.