Australia Joins the Taxonomy Era — A New Milestone in Sustainable Finance
On June 17th, 2025, Australia became the latest country to publish an official sustainable finance taxonomy. It’s a breakthrough — and one we at SWISOX welcome with genuine enthusiasm.
Developed under the leadership of the Australian Sustainable Finance Institute (ASFI) with oversight from Treasury and regulators, the taxonomy reflects 20 months of intense consultation and technical work. It sets out a Paris-aligned, science-based framework for classifying economic activities, specifically designed for Australia’s unique economic and environmental landscape.
The Australian Sustainable Finance Taxonomy is here.
While voluntary for now, the taxonomy is already being piloted by a coalition of heavyweight institutions including:
ANZ
Westpac
NAB
Commonwealth Bank of Australia
HESTA
CEFC
Moody’s Ratings
Rabobank
Rest
These pilots will test the framework in real-world investment decisions and provide feedback for refinement — a practical, inclusive approach that aligns with global best practices.
Why This Matters
The Australian taxonomy does more than create structure — it sends a message. The days of vague ESG language and unchecked green claims are numbered. This taxonomy:
Introduces clear eligibility criteria for green and transition activities
Covers complex sectors such as mining and minerals, often excluded elsewhere
Explicitly integrates First Nations engagement and cultural heritage into the sustainability lens
Enables credible climate-aligned investments that match both domestic priorities and global investor expectations
As Sean Kidney from the Climate Bonds Initiative put it:
“It’s a shopping list of investments for the future.”
We couldn’t agree more.
SWISOX Will Now Begin Its Evaluation
At SWISOX, our job is to help investors cut through the noise and get to the signal. That means identifying companies — anywhere in the world — whose sustainability performance is real, verifiable, and meaningful.
The SWISOX Traffic Light System™ classifies companies based on existing and emerging taxonomy-based criteria. We currently prioritise the EU Taxonomy and the Independent Science-Based Taxonomy (ISBT), but our framework is built to accommodate multiple jurisdictions.
We will now:
Review the Australian taxonomy in detail
Compare ambition levels across sectors
Determine eligibility thresholds
Evaluate whether it meets inclusion standards for the Traffic Light System™
We are hopeful. And we’re fortunate to be partnering with Linda Romanovska, a recognised leader in the region and long-time contributor to international sustainable finance work. With her help, we hope to bring the Traffic Light framework to Australian companies in the near future.
What Comes Next
The Australian taxonomy will be tested, refined, and — if successful — gradually integrated into Australia’s broader financial system. Its compatibility with the Climate Bonds Standard also paves the way for taxonomy convergence — a critical step in the development of transparent, comparable sustainable markets worldwide.
For SWISOX, it opens the door to new data, new markets, and new opportunities to accelerate our mission: a transparent, trusted marketplace for sustainable finance.
