Source: Australian Ministers for Regional Development
The ACCC has issued a determination granting authorisation with conditions to allow the Australian Sustainable Finance Institute (ASFI) and industry participants to collaborate on sustainable finance initiatives for five years.
The authorisation allows ASFI, ASFI members and other industry participants 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, and develop related regulatory reform proposals.
The collaborative conduct aims to facilitate the development of sustainable farming practices, support producers to meet sustainability regulations of export destinations, and contribute to emissions reduction targets.
“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,” ACCC Deputy Chair Mick 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 ACCC has specified five conditions of authorisation to address potential public detriments, such as reduced competition in the supply of sustainable finance products and coordinated behaviour in broader financial markets from information sharing.
“We are able to consider a broad range of sustainability benefits when assessing exemptions from competition law,” Mr Keogh said.
“This authorised conduct, with the conditions, will likely result in public benefits that outweigh potential community harms.”
The ACCC has recently published a guide for businesses on sustainability collaborations that aims to help businesses understand how competition law applies to sustainability initiatives.
Competition law does not need to be a barrier for those considering sustainability collaborations that deliver a net public benefit. A wide range of sustainability collaborations may not breach competition laws. Where there is risk of a potential breach, the ACCC’s authorisation process is flexible and can provide timely legal protection to businesses who wish to work together to achieve better environmental outcomes.
A copy of the decision is available on the ACCC’s public register.
Background
ASFI is a collaboration between representatives of the Australian financial sector, civil society, academia, and financial regulators. Membership is voluntary and open to any corporation in the financial services sector or service provider to financial institutions which is interested in pursuing and supporting ASFI’s objectives.
The Department of Foreign Affairs and Trade (DFAT) has provided the ASFI with a grant to undertake the ‘Institutional Investor Engagement (Indo-Pacific)’ project to draw private investment into development outcomes in the Indo-Pacific region, including through supporting the development of DFAT’s blended finance portfolio.
The ACCC granted interim authorisation to the ASFI and its member banks on 7 March 2025, allowing them to discuss and exchange information for the purpose of developing potential banking capital requirement reforms to remove constraints on sustainable finance and investment in Australia. Interim authorisation will remain in place until the final determination comes into effect.
The ACCC released a draft determination on 17 April 2025 proposing to grant authorisation, with conditions, for five years.
Note to editors
ACCC authorisation provides statutory protection from court action for conduct by competitors that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act.
Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
In December 2024, the ACCC released its guide on sustainability collaborations and Australia competition law to inform businesses and other entities about the interaction between Australian competition law and sustainability collaborations.