Sustainable investing rests on three essential pillars: the determination of investors to demand change, the existence of clear, globally‑recognised standards, and the ability to embed those standards into day‑to‑day investment processes. Australia is rapidly strengthening each of these foundations. Asset Servicing Times speaks with Jules Bottlaender, Head of Sustainable Finance APAC for Securities Services at BNP Paribas.
Asset Servicing Times (AST): Jules, let’s start with some context. Australia is one of the leading countries for organised investment, in the Asia-Pacific and, indeed, globally. Where is Australia heading in terms of sustainable developments?
Jules Bottlaender (JB): In 2021, Australia committed to reaching net zero emissions by 2050, in alignment with the Paris Agreement. Since then, achieving this goal has become more tangible through ambitious interim targets as set by the Australian Government[1]. By 2030, Australia plans to reduce its emissions 43% below 2005 levels by 2030[2]. Additionally, the Australian government has announced that it will set a 2035 climate change target, aiming to reduce emissions by 62% to 70% below 2005 levels, as recommended by the Climate Change Authority[3].
BNP Paribas is a leading securities services provider in Australia. What are you hearing from the investors?
JB: These national targets provide a clear signal to the private sector, which has already begun significant investments. With abundant solar and wind resources, along with mineral assets for manufacturing solar panels, Australia is well positioned to become a leader in clean energy. The Australia-Asia PowerLink project, for example, will include a vast solar plant and battery facility in the Northern Territory, supplying power to Darwin and Singapore via a 4,200km submarine cable.
On a broader level, the recent edition of our biennial ESG survey revealed that 94% of Australian institutional investors remain strongly committed to sustainability despite recent geopolitical upheavals. But 47% of them say that, while their targets have not changed, they look to adopt a more reserved approach to communicating what they are doing.
Climate change remains top of mind: over two-thirds of investors in Australia and New Zealand plan to increase allocations to energy transition assets within two years, and 70% prioritise portfolio decarbonisation.
That said, sustainable investing faces hurdles. About 60% of investors identify ESG data and research challenges as a key issue. The core problem is that ESG information is scattered across numerous providers, uses inconsistent methodologies and often arrives late or with gaps, making it difficult to compare, aggregate and verify.
AST: How is that challenge being addressed?
JB: Since the first editions of this biennial survey, data quality, availability, comparability, and consistency have been longstanding challenges. Finance relies heavily on quantitative measures, but sustainability has a strong qualitative element. We cannot always rely on simple KPIs to capture the full picture.
Technology has been key in improving data accuracy and scope, though gaps remain. One major issue is the lack of a clear global methodology. For example, climate risk assessment frameworks remain vague, with companies free to set their own assumptions and approaches. This makes comparing results difficult and hinders investment decisions.
However, this is improving, and we expect consensus to emerge through trial and error, and eventually regulation.
AST: What are the current regulations in Australia? Are they aligned with global standards?
JB: Australia’s Sustainable Finance Roadmap outlines reforms to support sustainable finance. In June 2025, the Australian Sustainable Finance Institute (ASFI) released a green taxonomy defining what economic activities qualify as “green” or “transition.” This taxonomy is expected to play a pivotal role in shaping the disclosure requirements for Australian companies, enabling them to better communicate their sustainability performance and progress toward net-zero emissions.
Meanwhile, the Australian Accounting Standards Board (AASB) published voluntary and mandatory disclosure standards for sustainability-related financial information, including climate disclosures effective January 2025.
The government has also issued consultation papers for a Transition Planning Guidance and a Sustainable Product Labelling framework. These measures align closely with international standards and global consensus.
AST: Sustainable investment has often been synonymous with climate action and clean energy. What about other concerns?
JB: Nature is another critical focus. Australia, along with other countries, adopted the Global Biodiversity Framework in 2022. This includes the “30 by 30” target to conserve at least 30% of lands and oceans by 2030[4] as announced by the Australian Government in 2024.
But the private sector has been slower to respond. The hesitation largely stems from the lack of financially viable products and investment opportunities tailored for nature-based solutions. One promising development is the recently established Nature Repair Market in Australia – the world’s first voluntary national biodiversity market[5]also a government initiative that establishes a marketplace where individuals and organisations can undertake nature repair projects and attract investors.
Another challenge lies in the complexity of measuring nature’s value. Unlike climate, which has a clear KPI like carbon emissions, each ecosystem has unique species and interactions. Fortunately, emerging international standards and innovative data technologies are helping to tackle these complexities.
AST: There have been high-profile cases where investment managers faced heavy fines for greenwashing by making false or misleading claims about their products’ sustainability. Should the sector see this increased scrutiny as a threat or an opportunity?
JB: It can create the opposite effect known as greenhushing, where firms downplay their sustainability credentials to avoid regulatory risks and reputational damage. This partly explains why in our survey 45% of Australian investors say they plan to be less vocal about their sustainability targets.
ASIC’s enforcement is necessary to restore trust and transparency in sustainable investment products.
AST: How would you sum all this up?
JB: Australia is making strong progress on climate leadership, driven by its ambitious net‑zero targets, innovative market solutions like biodiversity credits, and a rigorous commitment to sustainability standards. The country’s comprehensive approach to climate action encompasses a wide range of initiatives, including the development of a robust green taxonomy, enhanced ESG disclosures, and investments in renewable energy infrastructure, such as solar and wind farms, which have positioned Australia as a leader in the Asia‑Pacific region.
Australia is also well positioned to host COP 31, the largest climate event in 2026. This will be a pivotal opportunity for the country to maintain its momentum and collaborate with Pacific Island nations, which face severe risks from climate change. Their plight powerfully illustrates the urgency of global action.
AST: Thank you
[1] Australia’s plan to reach our net zero target by 2050 | Ministers for the Department of Industry, Science and Resources
[2] AUSTRALIA’S NATIONALLY DETERMINED CONTRIBUTION
[3] Setting Australia’s 2035 climate change target | Prime Minister of Australia
[4] National Roadmap for protecting and conserving 30% of Australia’s land by 2030 – DCCEEW