Australian insights
Australia launches its sustainable finance taxonomy(Opens in a new tab/window)
The Australian Sustainable Finance Institute (ASFI), with the support of Treasury, has released(Opens in a new tab/window) version one of the Australian sustainable finance taxonomy. The taxonomy is a framework that classifies economic activities that positively contribute to Australia’s key environmental sustainability objectives, with the aim of directing private capital toward sustainable economic activities. This first version of the taxonomy delivers technical screening criteria for six priority sectors, against the objective of climate mitigation. It includes definitions to support broader environmental considerations beyond climate mitigation through ‘do no significant harm’ criteria, which ensure that each economic activity covered in the taxonomy does not significantly harm the other environmental objectives. With the taxonomy now available for voluntary use by the private and public sectors, ASFI has launched a pilot with financial institutions to explore the taxonomy's practical applications.
Watch Commonwealth Bank of Australia's Head of Sustainable Finance and ESG, Charles Davis, and Australian Sustainable Finance Institute's (ASFI) Executive, Nicole Yazbek-Martin, discussion(Opens in a new tab/window) on what the sustainable finance taxonomy is and what it means for large corporates, financial institutions, mandatory climate reporting and everyday Australians.
International insights
Growing role of nature-related business in the UK economy(Opens in a new tab/window)
BloombergNEF (BNEF), a research arm of Bloomberg, has developed(Opens in a new tab/window) a preliminary typology for identifying companies halting nature loss. Focusing on the UK, BNEF has found close to 900 UK-domiciled organisations, spanning various economic sectors, which help mitigate the drivers of nature loss or support an improvement in the state of nature. The analysis shows that broadening the scope of nature-related activities to include those mitigating the drivers of nature loss captures more meaningful and immediate opportunity than conservation and restoration.
Nature Finance Focus(Opens in a new tab/window)
Pollination, a sustainable investment and advisory firm, has published(Opens in a new tab/window) its second Nature Finance Focus report tracking global trends in nature investment. The report draws on a survey of 500 institutional investors across the UK, USA, Australia, Singapore and Japan. Pollination notes investors observe more risk from nature in 2025 than in 2023 (the year of the last survey), with insurance related asset managers and pension funds particularly increasing their view of risk.
WRI's guidebook for financial sector investment in NbS(Opens in a new tab/window)
The World Resources Institute (WRI) published(Opens in a new tab/window) a finance sector guidebook on investment in nature-based solutions (NbS). The guide discusses challenges in scaling NbS finance and provides a framework for financial institutions to integrate NbS into their investment strategies. This would enable financial institutions to manage nature-related risks, comply with evolving regulations and respond to consumer demands for sustainability. Priority sectors - including agriculture, food and beverage, tourism, utilities and real estate - have the highest risk exposure but also offer untapped potential for NbS opportunities. The guide highlights how financial institutions can tap into NBS-related opportunities across three domains: risk mitigation and portfolio resilience; sustainable financial growth; and emerging market opportunities and financial innovations.
Responsible Investor's Nature and Investor Survey(Opens in a new tab/window)
Responsible Investor reported(Opens in a new tab/window) findings from its survey of 100 global asset managers and owners. While most respondents were based in Europe, 9% were based in Australia and New Zealand. Findings showed 67% of respondents were looking for investment opportunities in nature. While there has been some positive progress, there are ongoing issues with data, lack of board level representation and the need for regulation. The top three nature-related risks considered most financially material by survey respondents were water, deforestation and soil degradation.
TNFD working on nature-related data solutions(Opens in a new tab/window)
The Taskforce on Nature-related Financial Disclosures (TNFD) has commenced(Opens in a new tab/window) its next phase of work on solutions to support access to decision-useful nature data. The TNFD is undertaking pilot testing to inform further technical design specifications for a possible Nature Data Public Facility, an open-access, centralised hub designed to enhance the quality, access, and comparability of nature data. The TNFD is also launching a ‘grand challenge’ to foster new technology solutions to enable SMEs to undertake a rapid assessment of their nature-related issues.
UK Government consulting on private sector investment in nature (Opens in a new tab/window)
The UK government has launched(Opens in a new tab/window) a call for evidence seeking insights into how to support and incentivise private sector investment in nature recovery. Views are being sought from a range of stakeholders on the principles and opportunities that could govern policy development to increase investment in the natural environment, as well as on how to mobilise investment in six key areas: clean water, nature-based carbon reduction, green space access, flood management, sustainable land use, and international nature restoration.