Sustainable finance research brief 2: Impact disclosure

The DFCRC is exploring research and commercialization opportunities in ‘sustainable finance’; specifically, how can the digital finance toolkit be used to unlock the trillions of dollars needed to transition Australia towards a more resilient, decarbonized, regenerative and just economy. As part of this agenda, the DFCRC is pursuing a project – currently referred to as the Australian Impact Exchange (AIX) project – to develop a public digital marketplace for trading debt and equity securities in entities/ assets/ funds that deliver financial returns and verified environmental and social outcomes. It is intended to be a marketplace where economic activity with evidenced positive impact attracts disproportionate capital at lower cost, thereby driving shareholder value and more investment into impact outcomes.
There is an increasing number of global and local frameworks and standards that are being developed to guide public disclosures about non-financial performance. The design of the AIX will need to consider which of these it might adopt, combine, or build on if none are sufficient, and areas where the AIX might innovate to showcase ‘future best practice’.
Questions to address
1. What is the landscape of existing and emerging frameworks and standards for non-financial disclosure?
2. What are the key trends in terms of where the frameworks and standards are heading?