Australian Competition and Consumer Commission proposes conditional five-year authorisation for Australian Sustainable Finance Institute sustainable finance collaboration

The Australian Competition and Consumer Commission has issued a draft determination proposing to grant authorisation, subject to conditions, for the Australian Sustainable Finance Institute (ASFI), its members and other industry participants to collaborate on a range of sustainable finance initiatives for five years. The proposed authorisation would allow information sharing and joint work to improve the integration of natural capital data into financial decision-making, co-design investment structures and develop related regulatory reform proposals, including for some participants to jointly develop and put forward preferred investment structures or product features. The ACCC flagged that collaboration and information sharing between competitors can reduce competition in the supply of sustainable financial products and broader financial markets through coordinated behaviour. In its draft decision it has amended aspects of the conduct to be authorised and proposes conditions aimed at strengthening oversight and transparency and limiting the circumstances and content of any information sharing, with a preliminary view that the expected public benefits would outweigh likely competition harms. Submissions on the draft determination are due by 2 May 2025 ahead of a final determination. Interim authorisation granted on 7 March 2025 for ASFI and its member banks to discuss and exchange information on potential banking capital requirement reforms will remain in place until the final determination comes into effect.