The Responsible Investment Association Australasia (RIAA) applauds the Australian Government’s commitment to the development of sustainable finance. The 2024-2025 Federal Budget includes funding for:
- the Australian Securities and Investments Commission (ASIC) and the Treasury for the development of a labelling regime for sustainability labels;
- ASIC to investigate and respond to market participants engaging in greenwashing and other sustainability-related financial misconduct;
- the Treasury, ASIC and the Australian Prudential Regulation Authority (APRA) to deliver the sustainable finance framework, including improving data;
- the continued development of Australia’s sustainable finance taxonomy.
RIAA Co-CEO Estelle Parker is pleased that the budget has recognised the importance and the urgency of developing Australia’s sustainable finance sector. “For too long, Australia was a late starter globally in recognising the opportunities provided by sustainability to all sectors, from primary industries, to manufacturing and workforce development. We must not miss out on the global capital flowing to invest in the transition to a low-carbon future – it won’t last forever.”
Estelle emphasised the critical role of an internationally aligned financial product labelling regime, stating that it will help combat greenwashing and help shift capital towards funding the transition to a net-zero economy. “Our experience operating the Responsible Investment Certification Program, which is, to our knowledge, the world’s longest running responsible investment product labelling scheme, provides strong evidence for the value of a national product labelling scheme. Our internationally-aligned certification standard and rigorous application process have prompted numerous product issuers to significantly improve their product design, disclosures and marketing in order to gain certification. In fact, 70% of products seeking certification need to make changes before they can succeed. This in turn, improves the products provided to consumers and retail investors, and reduces the likelihood of greenwashing.”
RIAA believes a product labelling regime will ensure consistency and reliability and help with appropriate enforcement. "A regime that is informed by RIAA's extensive experience in sustainable investment labelling can establish a leading practice for Australia," Estelle said. RIAA, representing 75% of Australia's professionally managed funds through its membership, urges the Australian Government to work with RIAA to use the existing Certification Program – which has a high degree of industry history and ownership - as the basis on which to develop an integrated, interoperable product labelling regime. “This collaborative approach will ensure a smooth transition and build upon the valuable expertise already established within the industry,” added Estelle.
The Federal Budget also includes various initiatives to bolster Australia’s sustainability efforts, from funding the Nature Positive Plan to the $22.7 billion Future Made in Australia package which should help support the private investment required for Australia to move to net zero. “Australia has a unique opportunity as a late mover to both leapfrog and be a global leader through harnessing the wealth of knowledge and experience of the oldest living culture on Earth and their deep intelligence about caring for country. Our economic success depends on swift yet thoughtful action which includes a balanced approach that avoids excessive regulatory burden while incentivising capital flow into sustainable initiatives. As the largest and most active sustainable finance industry group in the southern hemisphere, RIAA is looking forward to working closely with policymakers and industry to achieve a healthy and sustainable economy, society and environment,” said Estelle.
RIAA is also calling for robust reforms to protect biodiversity through Australia’s Environment Protection and Biodiversity Conservation (EPBC) Act, Commonwealth law reform on First Nations Cultural Heritage protection and further reduction in the regulatory barriers to investing in the transition, such as reforms to the Your Future, Your Super benchmark regime.
For further information, please contact Ada Tso, Marketing & Communications Manager, ada@responsibleinvestment.org, +61481308718
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The Responsible Investment Association Australasia (RIAA) applauds the Australian Government’s commitment to the development of sustainable finance. The 2024-2025 Federal Budget includes funding for:
- the Australian Securities and Investments Commission (ASIC) and the Treasury for the development of a labelling regime for sustainability labels;
- ASIC to investigate and respond to market participants engaging in greenwashing and other sustainability-related financial misconduct;
- the Treasury, ASIC and the Australian Prudential Regulation Authority (APRA) to deliver the sustainable finance framework, including improving data;
- the continued development of Australia’s sustainable finance taxonomy.
RIAA Co-CEO Estelle Parker is pleased that the budget has recognised the importance and the urgency of developing Australia’s sustainable finance sector. “For too long, Australia was a late starter globally in recognising the opportunities provided by sustainability to all sectors, from primary industries, to manufacturing and workforce development. We must not miss out on the global capital flowing to invest in the transition to a low-carbon future – it won’t last forever.”
Estelle emphasised the critical role of an internationally aligned financial product labelling regime, stating that it will help combat greenwashing and help shift capital towards funding the transition to a net-zero economy. “Our experience operating the Responsible Investment Certification Program, which is, to our knowledge, the world’s longest running responsible investment product labelling scheme, provides strong evidence for the value of a national product labelling scheme. Our internationally-aligned certification standard and rigorous application process have prompted numerous product issuers to significantly improve their product design, disclosures and marketing in order to gain certification. In fact, 70% of products seeking certification need to make changes before they can succeed. This in turn, improves the products provided to consumers and retail investors, and reduces the likelihood of greenwashing.”
RIAA believes a product labelling regime will ensure consistency and reliability and help with appropriate enforcement. "A regime that is informed by RIAA's extensive experience in sustainable investment labelling can establish a leading practice for Australia," Estelle said. RIAA, representing 75% of Australia's professionally managed funds through its membership, urges the Australian Government to work with RIAA to use the existing Certification Program – which has a high degree of industry history and ownership - as the basis on which to develop an integrated, interoperable product labelling regime. “This collaborative approach will ensure a smooth transition and build upon the valuable expertise already established within the industry,” added Estelle.
The Federal Budget also includes various initiatives to bolster Australia’s sustainability efforts, from funding the Nature Positive Plan to the $22.7 billion Future Made in Australia package which should help support the private investment required for Australia to move to net zero. “Australia has a unique opportunity as a late mover to both leapfrog and be a global leader through harnessing the wealth of knowledge and experience of the oldest living culture on Earth and their deep intelligence about caring for country. Our economic success depends on swift yet thoughtful action which includes a balanced approach that avoids excessive regulatory burden while incentivising capital flow into sustainable initiatives. As the largest and most active sustainable finance industry group in the southern hemisphere, RIAA is looking forward to working closely with policymakers and industry to achieve a healthy and sustainable economy, society and environment,” said Estelle.
RIAA is also calling for robust reforms to protect biodiversity through Australia’s Environment Protection and Biodiversity Conservation (EPBC) Act, Commonwealth law reform on First Nations Cultural Heritage protection and further reduction in the regulatory barriers to investing in the transition, such as reforms to the Your Future, Your Super benchmark regime.
For further information, please contact Ada Tso, Marketing & Communications Manager, ada@responsibleinvestment.org, +61481308718
