The financial services sector is a powerhouse of the Australian economy, contributing a significant percentage of the national GDP with revenues in the hundreds of billions, assets in the trillions of dollars, and a workforce of over half a million people. Its diverse offerings include retail and commercial banking, wealth management, insurance, and superannuation products, underpinning the financial security of individuals and businesses across the country.

Key ESG issues

Despite this sector being comprised of multiple sub-sectors, the material ESG issues are common and revolve around responsible lending, investment and insurance practices, maintaining robust cybersecurity systems and protocols, and managing the systemic financial risks associated with climate change. The key regulators for the sector – APRA and ASIC – have been gradually pushing the larger businesses in the sector to understand their climate-related risks and begin developing plans to manage these appropriately. The newly introduced ASRS will now force the hand of the rest of the sector (including large private family funds) to follow suit and disclose the results and their plans publicly, for the first time.

Industries

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