ACCC approves Australian Sustainable Finance Institute collaboration
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The news: The Australian Competition and Consumer Commission (ACCC) has authorised banks, insurance firms, super funds, consulting firms, law firms and investment funds to share information through sustainable finance initiatives for five years.
The context: The Australian Sustainable Finance Institute (ASFI) is a collaboration between the finance sector, civil society, academia and financial regulators. It was given interim authorisation by the ACCC on 7 March followed by a draft determination on 17 April.
Founding members include the Big Four consulting firms and Australia’s four biggest banks. Other participants include the Clean Energy Finance Corporation, Allianz, Metrics Credit Partners and credit rating agency Moody’s.
ASFI and industry participants will be able to exchange information to “improve the integration of natural capital data into financial decision-making, co-design investment structures and give effect to limited agreements for co-designed financial products”.
They have also been authorised to develop related regulatory reform proposals. The collaboration aims to develop sustainable farming practices, support producers to meet sustainability regulations and help reduce emissions.
The authorisation comes with five conditions to address potential harms, such as reduced competition in the supply of sustainable finance products or coordinated behaviour in broader financial markets from information sharing.
What they said: ACCC deputy chair Mick Keogh said the likely public benefits from the ASFI initiative will likely outweigh potential community harms.
“The ACCC recognises there can be benefits of businesses working together towards a more sustainable economy, and many sustainability collaborations are unlikely to raise competition concerns,” Keogh said.
“This authorised collaborative conduct will likely result in transaction cost savings, process efficiencies and increase the likelihood of investment supporting positive environmental and social outcomes.”
The source: ACCC media release
