The Australian Competition and Consumer Commission (ACCC) has granted a five‑year authorisation, subject to conditions, allowing the Australian Sustainable Finance Institute (ASFI) and industry participants to collaborate on a suite of sustainable finance initiatives.
The authorisation permits ASFI, its members and other parties in the financial sector to share information aimed at better integrating natural capital data into investment and lending decisions, jointly design investment structures and put in place limited agreements for co‑designed financial products. It also allows participants to develop proposals for regulatory reform related to sustainable finance.
ACCC Deputy Chair Mick Keogh said the regulator acknowledged the potential public benefits of businesses working together on sustainability, and that many such collaborations do not raise competition concerns. He indicated the authorised arrangements, overseen by conditions set by the ACCC, were expected to generate efficiencies and increase the likelihood that private capital would support positive environmental and social outcomes.
To mitigate competition risks, the ACCC imposed five conditions on the authorisation. Those conditions are intended to address possible public detriments, including a reduction in competition for sustainable finance products and the risk that information sharing could lead to coordinated behaviour in wider financial markets.
The decision follows an interim authorisation granted on 7 March 2025, which has allowed ASFI and member banks to hold discussions and exchange information on potential changes to banking capital requirements that might remove barriers to sustainable finance and investment. Interim protections remain in force until the final determination takes effect.
ASFI is a voluntary coalition made up of representatives from the financial sector, civil society, academia and financial regulators. Membership is open to corporations in the financial services sector and service providers that support ASFI’s stated objectives. The institute has also received a grant from the Department of Foreign Affairs and Trade to carry out an “Institutional Investor Engagement (Indo‑Pacific)” project aimed at mobilising private investment for development outcomes in the Indo‑Pacific, including support for DFAT’s blended finance portfolio.
The ACCC released a draft determination on 17 April 2025 proposing to grant authorisation with conditions, and published a guide for businesses late last year explaining how competition law applies to sustainability collaborations. The guide was designed to help companies understand when cooperation on environmental outcomes may be acceptable and when authorisation or other protections might be required.
The ACCC’s authorisation regime provides statutory protection from court action for conduct that could otherwise raise issues under the competition provisions of the Competition and Consumer Act, and the regulator may grant exemptions where it is satisfied that the public benefits outweigh any likely public detriments. A copy of the ACCC’s final decision is available on its public register.
