The ACCC has released a draft determination proposing to grant authorisation with conditions to allow the Australian Sustainable Finance Institute (ASFI) and industry participants to collaborate on sustainable finance initiatives for five years.
ASFI is seeking authorisation for itself, ASFI members and other industry participants to exchange information to improve the integration of natural capital data into financial decision-making, co-designing investment structures and developing related regulatory reform proposals. Authorisation is also sought for some participants to agree to jointly develop and propose to Government or ASFI the most effective investment structure and/or product features to achieve sustainable investment products.
ASFI 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 goal of the proposed collaborative conduct is to enable ASFI to increase the flow of private capital into sustainable investment opportunities.
"We consider that the proposed collaborative conduct would increase the likelihood of greater investment in projects seeking to preserve Australia's environment as well as cost savings and process efficiencies," ACCC Deputy Chair Mick Keogh said.
The ACCC considers this kind of information sharing and collaboration between competitors can reduce competition in the supply of sustainable financial products as well as in broader financial markets through coordinated behaviour enabled by information sharing between competitors.
The ACCC has made some amendments to the conduct to be authorised in its draft decision and is proposing to impose a number of conditions to limit any negative impacts. It will consider further whether additional refinements to the conduct are necessary before making a final decision.
The ACCC is seeking to ensure sufficient oversight and transparency of the arrangements and to appropriately limit the circumstances and contents of any information sharing.
"With the proposed conditions, we are satisfied that the collaborative conduct is likely to result in public benefits that would outweigh any likely harm to competition," Mr Keogh said.
The ACCC is seeking submissions in response to the draft determination by 2 May 2025 before making its final determination.
Further information about this application including 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 Australian Sustainable Finance Institute 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.
Note
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.
