Pilot programme finds taxonomy boosted green investment in Australia, as Canadian groups urge Ottawa to adopt similar fossil-free approach<\/p>\n
The Australian Sustainable Finance Institute has published an analysis of its green taxonomy pilot programme, suggesting Australian superannuation funds have benefited from a systematic understanding of which investments are considered green in order to achieve their climate goals.<\/p>\n
After the taxonomy was first published last June, the ASFI began a pilot programme with 11 financial institutions including banks, super funds, asset managers and credit agencies.<\/p>\n
The taxonomy<\/a> helped the financial institutions create green investment opportunities, the report concludes.<\/p>\n Its authors note that one of the piloting institutions, the ANZ Bank, supported two energy clients in using the taxonomy to establish green financing, including a Victoria Power Networks A$750mn ($525mn) green bond and an SA Power Networks A$300mn green bond.<\/p>\n The super funds in the pilot, Rest and Hesta, both say the taxonomy helped enhance their ability to place green investments.<\/p>\n \u201cThe pilot supported more consistent internal discussions and helped identify where further clarity or data may be required,\u201d the ASFI case study on Rest says. \u201cIt also highlighted the challenges of applying activity-level criteria in an equity investment context.\u201d<\/p>\n \u201cThroughout the pilot, Rest gained insights into how the taxonomy could be used as an additional climate-related lens to support investment analysis alongside existing investment processes,\u201d said a spokesperson for Rest in a statement to Sustainable Views.<\/p>\n Hesta\u2019s climate investment goals will continue to be guided through the taxonomy, the ASFI case study says.<\/p>\n \u201cThe taxonomy will likely provide an uplift in measuring and reporting these types of allocations with better understanding of what can be classified as climate mitigation activities,\u201d the case study on Hesta says.<\/p>\n \u201cThe taxonomy is a valuable tool for investors and governments, private and public sectors, policymakers and corporates,\u201d Hesta said in a statement published alongside the report. \u201cWhen adopted broadly, it will result in a universal language and a shared framework that links different parts of the capital value chain.\u201d<\/p>\n Model for Canada<\/p>\n Last week, Canada\u2019s taxonomy council published a draft proposal<\/a> for its initial green taxonomy.<\/p>\n The proposal allows for investments in upstream oil and gas activities focused on carbon abatement or decarbonisation. The move has drawn the ire of sustainable finance and environmental groups alike.<\/p>\n