Sustainable finance taxonomy

False

It can help direct investment to these activities and support Australia’s path to net zero emissions. It can also help prevent ‘greenwashing’. Greenwashing is where a company makes misleading claims about their environmental outcomes.

Initial development phase

The Australian Sustainable Finance Institute (ASFI) developed a sustainable finance taxonomy for climate mitigation. Treasury supported the development with a grant to ASFI.

ASFI released the taxonomy on 17 June 2025.

In this phase ASFI focussed on net zero-aligned criteria in 6 areas:

  • electricity generation and supply
  • minerals mining and metals
  • construction and buildings
  • manufacturing and industry
  • transport
  • agriculture and land.

The taxonomy includes definitions to support:

  • the environment, through ‘do no significant harm’ criteria
  • society, through ‘minimum social safeguards’ criteria.

Visit the ASFI website to read the Australian sustainable finance taxonomy

Interim report

ASFI provided Treasury an interim report during development of the taxonomy.

Governance and oversight

The Council of Financial Regulators’ (CFR) Climate Working Group oversaw the development phase.

Visit the CFR website to read about the working group

A Taxonomy Technical Expert Group provided direction and feedback.

Visit the ASFI website to read about the expert group

In consultation with key stakeholders, the government will explore options for: 

  • future governance arrangements
  • any potential regulatory use.

Activities