Where to from here?
The key drivers for sustainable finance issuance in the short to medium term are likely to be broad. How policy and regulatory initiatives develop will be critical, as will the development of updated market principles, guidance and disclosure frameworks.
The latter, in particular, will provide important clarity and broader scope for sustainable finance – for example in the areas of biodiversity and natural capital. In addition, continued innovation in sustainable-finance instruments will help borrowers achieve their sustainability goals.
ANZ is playing a key role in the shift supporting customers in their transition to a low-carbon and more sustainable economy by encouraging them to identify climate risks and opportunities, create or further strengthen existing transition plans and report publicly on their progress.
The bank has set a target to fund and facilitate at least $A100 billion by September 30, 2030 towards improving social and environmental outcomes for its customers and direct investments.
This includes initiatives to help lower carbon emissions, protect nature and biodiversity, increase access to affordable housing and promote financial wellbeing. If achieved, this would bring ANZ’s total commitment to $A166 billion dollars since October 2015.
More broadly, ANZ is supporting an economy-wide transition to net zero because it's our opportunity to shape a sustainable future for generations to come.
Shayne Elliott and Katharine Tapley are Chief Executive Officer, ANZ, and Head of Sustainable Finance, ANZ.
This article has been adapted from a LinkedIn live discussion.
It was originally published on ANZ Institutional Insights.