🌊 Can blue bonds deliver impact without sacrificing returns?

❓ Question:

Impact investing is often associated with shares and private markets, but can bond investors also generate measurable environmental and social outcomes while still achieving competitive financial returns?

✅ Answer:

According to Matt Lawton, head of impact fixed income and portfolio manager at T. Rowe Price, impact investing in fixed income does not require investors to sacrifice returns. Instead, impact and financial performance can work together when capital is directed towards projects with strong fundamentals and measurable outcomes.

Lawton says bond markets are increasingly being used to finance climate resilience projects, water infrastructure, blue economy initiatives and environmental restoration programs. Examples include a World Bank-backed Amazon reforestation bond, where investor returns are linked to the achievement of environmental outcomes, and climate resilience bonds that help communities prepare for extreme weather events.

He argues that one of the most powerful concepts in impact investing is additionality, where investors help create outcomes that may not otherwise occur. This can include educating issuers on how to structure blue bonds, attracting new sources of capital into sustainability projects and funding innovative environmental technologies.

Lawton also believes water security is one of the most underfunded opportunities in sustainable finance. Despite its importance to environmental and social outcomes, only a small proportion of green bond proceeds are currently directed towards water and wastewater projects.

🌟 Key insights:

🌟 Impact investing in fixed income can pursue financial returns and measurable impact simultaneously.

🌟 Bond markets are helping finance climate resilience, water security and environmental restoration projects.

🌟 The Amazon reforestation bond links investor returns to environmental outcomes.

🌟 Climate resilience bonds can fund flood defences, water storage and infrastructure upgrades.

🌟 Measuring outcomes is critical, with projects assessed through specific impact KPIs.

🌟 Water and sanitation remain among the most underfunded UN Sustainable Development Goals.

🌟 Blue bonds are emerging as a way to channel capital into oceans, water infrastructure and marine conservation.

🌟 Additionality focuses on creating outcomes that would not otherwise occur without investor involvement.

🌟 Investors can play a role in bringing new sustainability projects and issuers to market.

🌟 Strong environmental performance can also be a sign of stronger long-term business fundamentals.

🚩 Risks:

🚩 Climate resilience and environmental projects may face long development timelines.

🚩 Measuring real-world impact remains complex and requires credible reporting frameworks.

🚩 Blue bond markets are still relatively small and developing.

🚩 Investors need confidence that proceeds are directed towards genuine environmental outcomes.

🚩 Infrastructure and climate-related projects remain exposed to regulatory and operational risks.

🚩 Sustainability-labelled bonds may face scrutiny if impact outcomes are poorly measured or communicated.

⚠️ Things to watch:

⚠️ Growth in climate resilience bonds and adaptation-focused financing.

⚠️ Expansion of the global blue bond market.

⚠️ Increased investor demand for measurable impact outcomes.

⚠️ New structures linking financial returns directly to environmental performance.

⚠️ Greater private-sector participation in water security and marine conservation projects.

⚠️ Development banks continuing to support innovative sustainability financing models.

⚠️ More focus on additionality as a key measure of impact investing success.

💡 Why it matters:

Much of the discussion around sustainable investing focuses on equities, but bond markets represent a far larger pool of capital globally. As investors search for ways to finance climate adaptation, water security and environmental restoration, fixed income markets could play an increasingly important role. For investors, the growth of blue bonds and resilience bonds may provide opportunities to support measurable environmental outcomes while maintaining competitive risk-adjusted returns.

🎙️ Sources:

Matt Lawton - head of impact fixed Income and portfolio manager, T. Rowe Price

Michelle Baltazar - host, The Greener Way

⏱️ Timestamps:

00:15 - Why impact investing isn't just about equities

01:27 - Managing impact-focused fixed income strategies

03:45 - Building the blue bond market with the IFC

04:20 - How bond investors support climate resilience

05:00 - The Amazon reforestation bond explained

06:00 - Linking investor returns to environmental outcomes

07:05 - Impact investing and return expectations

08:00 - Infrastructure investing versus resilience investing

08:37 - Tokyo's climate resilience bond case study

11:00 - Why water security is underfunded

12:18 - Investing in blue bonds without sacrificing returns

13:07 - Understanding additionality in impact investing

15:00 - Bringing new sustainability projects to market

16:34 - Funding coral reef restoration through blue bonds

18:16 - Responding to impact investing sceptics

20:08 - Why impact and returns can reinforce each other

Links:

https://investors.troweprice.com/news-releases/news-release-details/t-rowe-price-launches-blue-bond-emerging-markets-strategy-help

https://www.troweprice.com/financial-intermediary/au/en/lp/esg/blue-economy.html

🌿 We record on Gadigal Land and pay our respects to the traditional custodians of Country and elders past and present.

Latest research by ACSI found the rule has become a foundation in Australia to good governance, creating a clear mechanism through which investors can raise concerns about executive remuneration.

In contrast to being misused, or spill mechanisms causing board instability, the report found evidence of commitment to engagement between investors and companies to resolve problems, making a second strike less likely.

"The two strikes rule is doing exactly what it was designed to do: it gives shareholders a meaningful voice on executive pay, encourages boards to respond to legitimate concerns and strengthens accountability," ACSI chief executive Louise Davidson said.

"Strikes can attract significant attention, particularly when they involve high-profile companies or controversial pay decisions.

"But the evidence shows they are the exception, not the norm.  Investors care about executive remuneration because incentives can shape behaviour. They expect to see executive remuneration that rewards performance, reflects the experience of shareholders and supports the long-term success of the company."

The two strikes rule came into force in 2011. Under it, a remuneration report with an 'against' vote of 25% or higher receives a 'strike', after which investors can raise concerns about executive remuneration. If the report receives a 'second strike' the next year, boards can face a spill motion if investors choose to enforce it.

Davidson said the rule has acted as a moderating force, and Australia has not experienced the significant increases in remuneration packages seen in some other markets.

"It has proven to be an effective form of market discipline, with strikes a powerful signal and accountability mechanism," she said.

"The rule's strengths include encouraging boards to respond to investor concerns, improving disclosure and supporting boards to consider whether remuneration structures are aligned with long-term company performance.

"The rule has not eliminated excessive pay or poor remuneration design, but it has proved to be a highly useful mechanism for increasing accountability on remuneration."

Davidson added the rule is an important part of this broader picture and investors view a vote on remuneration implementation as a foundational right and responsibility.

"By strengthening the link between executive pay and long-term performance, the rule has supported better governance outcomes and delivered benefits for Australian superannuation fund members," she said.

Under the alliance's updated target-setting Protocol, members are due to publish targets for new investments in private equity funds, privately held debt and infrastructure funds by the end of 2026.

The alliance, which has 85 institutional members managing US$10.5 trillion, said in its 2026 progress report data limitations and diverse investment structures remained important challenges in private markets.

"Private markets cover a wide range of strategies and asset classes, from private equity and infrastructure to real estate and private debt. Their differing ownership structures, investment horizons, data availability and levels of influence require tailored approaches rather than a single methodology," the report read.

"While climate disclosure is generally less developed than in public markets, private assets can offer direct relationships with managers and portfolio companies.

"Asset owners can therefore act while improving data quality by requiring credible transition plans, engaging managers and companies, and monitoring progress using reported or, where necessary, estimated emissions."

To tackle the issue, the report noted signatories are working to frame considerations for individual asset-specific target-setting, engaging with external asset managers and using more consistent climate information.

The progress report added better data alone does not solve implementation challenges and signatories' discussions highlighted transition targets need to reflect the characteristics of different private assets.

"A buyout investment, for example, offers a different level of ownership and influence than venture capital, private debt or a fund-of-funds allocation," the report read.

"Credible implementation therefore requires asset owners to select approaches suited to each strategy and retain sufficient flexibility to reflect differences in ownership, investment horizons and available climate information as methodologies and market practices evolve."

Taking effect on November 1, Australian Ethical has rolled out a set of new investments affecting members across the board.

For accumulation members, the Conservative and Growth options' fees went up by 0.02%.

The Conservative Balanced and Balanced options increased by 0.03% to 0.81% and 0.86% respectively. The International Shares fee is now 0.97%, up 0.04%.

The Defensive and Australian Shares options' fees are unchanged at 0.24% and 1.15% respectively.

Australian Ethical said these are not increases to the investment management fees it charges.

"They reflect the annual regulatory calculation of investment fees and costs incurred in managing the relevant investment option over the previous financial year," Australian Ethical explained.

The majority of the Retirement Pension and Transition to Retirement investment options followed the same fee increases as the accumulation options.

Accumulation members' transaction costs, which relate to the sale and purchase of assets other than costs that are recovered by the super fund when charged buy-sell spreads at the time members buy or sell investment options, rose between 0.01% and 0.03%. These exclude the Defensive and International Shares options. Transaction costs also include taxes, duties and other costs such as brokerage fees.

Most of the investment options in Retirement Pension and Transition to Retirement products also followed suit.

Earlier in 2026, Australian Ethical announced superannuation investment fee on several investment options would reduce by 0.06% p.a.

"Every year, we're required to calculate and disclose to members any changes in the indirect investment fees and costs that have been incurred by the fund and its investment managers over the past 12 months. These are not deducted directly from your account. They are included in the investment fees and costs of the relevant option and reduce the investment return reflected in its unit price," the super fund told members.

Most changes related to investment fees and costs were between 0.02% and 0.04%, Australian Ethical added, noting they reflect either performance fees paid by the super fund to investment managers where they exceeded their performance targets, or indirect costs incurred by the managers over the previous 12 months.

On May 1, the super fund closed its High Growth investment option as all members transferred to the Growth option.

In June, it introduced a new Conservative Balanced investment option for accumulation and pension members. It aims to achieve returns of 2.25% p.a. above inflation over 10 years.

International environmental organisation 350.org has called on the Australian government to agree on concrete steps towards a just and equitable transition away from fossil fuels, accelerate the expansion of renewable energy, and deliver the climate finance developing countries urgently need.

The event will take place in Antalya, Türkiye from November 9 to 20, with Australia serving in a co-hosting and co-leadership role.

A number of delegates from Australia will attend the event this year. Chris Bowen, the minister for climate change and energy, being one of them, has been designated as president of negotiations for COP31, which gives him authority to lead the formal negotiations, draft texts and build consensus.

As world leaders prepare to gather in Antalya for COP31, 350.org warned the world cannot afford another decade of delay in transitioning away from fossil fuels.

"The UN climate conference starts amidst the largest fossil fuel crisis in history and people all over the world are facing increasingly devastating climate impacts while fossil fuel companies continue to rank obscene profits," the non-profit said.

350.org criticised Australia and Türkiye as among "the very few industrialised nations with no deadline to stop burning coal, the dirtiest fossil fuel there is."

"And they're still expanding. Australia, the second largest coal exporter in the world, also dominates in global coal expansion.

"Meanwhile, millions of people are paying for it, with soaring energy bills, catastrophic floods and deadly heatwaves. It's only going to get worse if governments don't end their toxic relationship with the fossil fuel industry soon," 350.org said.

Efe Baysal, Türkiye program manager at 350.org, commented Türkiye has a unique opportunity to demonstrate what climate leadership looks like.

"Hosting COP31 comes with a responsibility to help move the world beyond fossil fuel dependence and towards an energy system that works for people, not polluters. Communities in Türkiye and across the region are already experiencing the consequences of climate change, from extreme heat to water stress and wildfires," Baysal said.

"We cannot keep treating these impacts as a distant threat. COP31 must deliver real progress towards a just transition away from fossil fuels, with renewable energy, climate resilience and people's livelihoods at its heart."

The financing package, provided by 13 Australian and international lenders, covers five assets spanning wind, solar and battery storage in New South Wales, South Australia and Western Australia.

The portfolio includes the operating Hornsdale Power Reserve in South Australia, Goyder South Wind Farm Stage 1A, Culcairn Solar Farm and batter in NSW, and the Narrogin Wind Farm in WA.

The Clean Energy Finance Corporation (CEFC) has committed up to $100 million to the transaction, supporting a diversified mix of existing infrastructure and new developments.

CEFC chief executive Paul McCartney said the portfolio structure allows the corporation to support a broader range of renewable energy projects.

"The CEFC investment in this portfolio financing supports a range of assets providing diversification benefits, which means we can back more renewable energy across Australia. It's critical to see more renewable energy and storage come into the system, and we are pleased to see that this finance supports the build out of new wind resources like the Narrogin Wind Farm in WA," McCartney said.

Neoen Australia Pacific regional chief executive Jean-Christophe Cheylus said the transaction reflected the depth of the company's Australian portfolio and support from its financing partners.

"This landmark transaction underlines the strength, depth and growth of our portfolio in Australia," Cheylus said.

The financing marks Neoen's largest portfolio debt transaction to date. Since 2024, the company has raised more than $5 billion in debt financing across 20 Australian assets, representing 4.7GW of capacity.

Neoen, which says it has contributed more than 6GW of wind, solar and storage capacity to Australia's energy transition, is targeting 10GW of capacity nationally by 2030.

Group executive Xavier Barbaro said the financing would strengthen the company's balance sheet and support further investment in new projects.

Vision Super manages $32 billion in assets for Australians, whereas the New York City Retirement Systems (NYCRS) manages $460 billion for a group of five public pension systems.

Vision Super is the only Australian super fund that has disclosed its position ahead of Whitehaven Coal's AGM tomorrow.

The Market Forces resolution is calling on Whitehaven Coal to disclose how capital allocated to new and expanded coal mines would deliver increased returns for shareholders considering lower demand and coal price forecasts, and how that is aligned with achieving global climate goals.

Market Forces is also putting pressure on AustralianSuper, Australia's largest super fund, to challenge Whitehaven's coal expansion plans.

It's statement has been endorsed by 10 climate, environment and public policy organisations including Australian Conservation Foundation, The Australia Institute, GetUp and Climate Council.

AustralianSuper owns 11.8% of Whitehaven Coal shares, making it the company's largest shareholder.

Whitehaven Coal is progressing with plans to develop up to six new or expanded projects across NSW and Queensland, which includes three entirely new coal mines.

Organisations include the Association of Superannuation Funds Australia (ASFA), Australian Council of Superannuation Investors (ACSI), Investor Group on Climate Change (IGCC), Australian Sustainable Finance Institute (ASFI), Principles for Responsible Investment (PRI) and Responsible Investment Association Australasia (RIAA).

In a statement, the associations said climate disclosures inform valuation, asset allocation, investment, lending and underwriting decisions, as well as stewardship and due diligence.

They noted institutional investors, asset managers, banks, insurers and other financial institutions use the disclosures to help assess physical and transition risks, understand potential financial impacts and test business resilience under different scenarios.

"Consistent reporting allows users to compare companies and sectors, identify concentrations of exposure across portfolios, supply chains and the broader economy, and evaluate investment and financing opportunities," the statement read.

They added the value of this information extends to users through external managers, data and index providers, ratings agencies and stewardship services, where it is combined with other information.

"Super funds invest for Australians whose retirement may be decades away," ASFA chief executive Mary Delahunty said.

"Consistent, comparable and credible climate disclosures help funds assess risks, identify opportunities and allocate capital in members' best financial interests. Getting the disclosure framework right will drive better investment decisions and support stronger retirement outcomes for all Australians."

The peak bodies recognised there has been significant effort in implementing the disclosures including investment in systems, data, people and assurance, but noted early evidence showed mandatory reporting is already improving the availability, transparency and comparability of information.

"For long-term investors, good climate disclosure is essential, revealing the extent to which boards are engaging with material risks and opportunities, and how they are being factored into strategy, capital allocation and long-term resilience," Australian Council of Superannuation Investors chief executive Louise Davidson said.

"Clear, comparable information gives investors confidence that those matters are being properly overseen and managed on the path to a net zero economy."

As preparers and users gain experience, the associations expect reporting to become more useful and efficient, supporting greater integration of climate-related risks into governance, risk management and strategic decision-making.

"Maintaining a credible, proportionate and internationally aligned framework will be essential to ensuring these benefits continue to grow over time," the statement read.

🏗️ Where is energy transition money really going?

❓Question:

As billions of dollars flow into the energy transition, where are investors putting their money, and which infrastructure assets could benefit most from the shift to a lower-carbon and more resilient economy?

✅ Answer:

According to Nick Langley, head of real assets at ClearBridge Investments, the energy transition remains firmly on track, but investment priorities are evolving. Investors are moving beyond a narrow focus on green assets and subsidies and instead looking at how entire energy systems can become more reliable, affordable and resilient.

Langley says the transition is driving significant investment into physical infrastructure such as electricity grids, power networks, water systems and other essential assets needed to support growing energy demand. Factors such as AI data centres, industrial electrification and renewable energy generation are creating new pressure points that require major infrastructure upgrades.

Rather than focusing on individual assets, Langley advocates a systems-led approach to investing. This means identifying bottlenecks and critical infrastructure that can unlock broader economic benefits. While AI and digital technologies continue to attract attention, he believes the most durable opportunities may lie in the real assets that underpin economic activity and support the energy transition over the long term.

🌟 Key insights:

🌟 The energy transition story remains intact, but investor priorities are shifting toward affordability and resilience.

🌟 Electricity grids, transmission networks, water infrastructure and other physical assets are attracting significant capital.

🌟 Rising demand from AI data centres is increasing the need for new power infrastructure.

🌟 Investors are increasingly adopting a systems-led approach that focuses on solving bottlenecks.

🌟 Listed infrastructure provides exposure to long-term energy transition themes with relatively stable return profiles.

🌟 Capital is becoming more selective, creating opportunities for higher returns in essential assets.

🚩 Risks:

🚩 Rising capital costs could slow infrastructure development.

🚩 Energy demand forecasts may not align with actual technology adoption.

🚩 Policy and regulatory changes can affect infrastructure investment outcomes.

🚩 AI-related investments remain exposed to uncertainty around supply and demand.

🚩 Delays in grid upgrades could create constraints across the energy system.

⚠️ Things to watch:

⚠️ Continued investment in power networks, transmission lines and grid modernisation.

⚠️ Growing electricity demand from AI data centres and digital infrastructure.

⚠️ The evolution of energy affordability as a key investment consideration.

⚠️ Increased private capital participation in infrastructure projects.

⚠️ The shift from efficiency-focused investing toward resilience-focused investing.

💡 Why it matters:

The energy transition is no longer just about reducing emissions. It is increasingly about building the essential infrastructure needed to support economic growth, energy security and technological innovation. Understanding where capital is flowing can help investors identify opportunities in the assets that will underpin the next phase of the transition.

🎙️ Sources:

Nick Langley - head of real assets, ClearBridge Investments

Michelle Baltazar - Host, The Greener Way

⏱️ Timestamps:

00:35 - Why investors are pouring billions into the energy transition

02:08 - Blackstone's $8.7 billion energy transition fund

03:15 - How the energy transition story is evolving

04:08 - The rise of systems-led investing

05:31 - Why physical assets are back in focus

06:05 - Investing in grids, poles, wires and pipes

07:05 - How data centres are influencing infrastructure spending

08:13 - Who benefits from growing electricity demand?

09:06 - Understanding infrastructure risk and return profiles

10:08 - Different ways to invest in the AI infrastructure boom

11:29 - AI tokenisation and virtual assets explained

12:20 - The supply and demand dynamics for AI tokens

13:10 - Why data centre growth remains a key theme

15:13 - Should investors stick with real assets?

15:30 - Finding bottlenecks and long-term opportunities

16:39 - The shift from efficiency to resilience

17:08 - Why investors are becoming more selective

🌿 We record on Gadigal Land and pay our respects to the traditional custodians of Country and elders past and present.

The expanded commitment takes the fund's total investment in MPower to $250 million. Alongside $100 million from platform owner Wollemi Capital, bringing the combined capital committed to $350 million.

MPower was acquired by Wollemi in September 2025 and focuses on developing distributed solar and battery storage projects connected to the electricity grid.

The additional funding will support the platform's expansion, with projects already under construction across three states and further developments in the pipeline.

Wollemi Capital co-chief executive Paul Hunyor said the investment would strengthen MPower's capacity to scale its operations and deliver more projects.

"Today's announcement strengthens Wollemi's position as a long-term investor in scalable, distributed renewable energy infrastructure. This sets MPower up for its next phase of growth - more projects under construction, more batteries on the ground," Hunyor said.

For Rest, the commitment forms part of a broader investment relationship with Wollemi following a US$150 million allocation to the firm in 2025. That portfolio also includes Kalfresh, an integrated food and bioenergy project converting agricultural waste into renewable energy, gas and fertiliser.

Rest general manager Marina Pasika said the investment reflected the fund's focus on opportunities aligned with long-term economic and societal changes, including decarbonisation.

"Many of our members have decades until retirement, including around one million under 30, so we look for investment opportunities that can support members throughout their lives, while benefitting from the major economic and societal shifts expected to shape the future," Pasika said.

She said Rest believes the commitment could deliver long-term returns for members while providing exposure to the energy transition.

The investment adds to the growing role of superannuation capital in financing renewable infrastructure, as funds seek assets capable of supporting long-term portfolio returns alongside the shift to lower-emissions energy.

Smart Future Trust includes brands Future Super, smartMonday, GuildSuper, Child Care Super and Verve Super.

The governance and oversight of the five funds are now handled by Stewarda, which is part of Future Group. Its mandate as trustee covers governance, risk management and compliance.

This comes after Future Group agreed to acquire Stewarda from WTW in June 2026. The takeover was pending regulatory approval, which have now been achieved.

Stewarda chair Jeremy Cooper said the new trustee will provide strong governance and oversight as the funds continue to serve their members.

"Stewarda is purpose built to deliver long-term outcomes and robust governance in the best financial interests of members in all five of Future Group's superannuation brands," Cooper said.

"Our board brings deep experience across superannuation, financial services, investment management, governance and risk to support this important work.

"Future Group's work to establish Stewarda and internalise the trustee will create a closer connection between fund governance, operations and long-term planning."

Cooper served as deputy chair of ASIC from 2004 to 2009 and subsequently led the government's Super System Review, widely known as the Cooper Review.

The Stewarda board also includes Virginia Malley, Keri Pratt, Shailendra Singh, Lee Brennan and Sharon Davis.

Future Group chief executive Simon Sheikh said the appointment of the new trustee represents an important step in the growth and governance journey of the group.

"Bringing the trustee function into Future Group supports an integrated governance model aimed at continuing to deliver the best possible outcomes for all our members across the five Future Group superannuation brands," Sheikh said.

"Stewarda's experienced and majority independent board will provide dedicated oversight of Smart Future Trust, while remaining focused on delivering long-term outcomes for members."

FS Sustainability recently reported while low-cost responsible passive funds continue to see the majority of fund flows, active strategies, however, are fragmented between winners and losers, with some funds folding due to lack of scale.

APS Foundation portfolio manager for the Focused Portfolio David Wright said he is looking at a low-carbon bond strategy run by Coolabah Capital, while also exploring direct infrastructure investments such as the Palisade Impact Infrastructure Fund, to replace the closed funds.

Wright added he is also considering exposure to long-short equity funds and social housing for the portfolio.

"Long-short equity funds are not an exposure we've held to date in the focused portfolio. We think that's potentially going to be really useful as a way of protecting returns and generating returns if we do hit downward- or even sideward-moving share markets," he said.

"And social housing as an investment may be something if we can find the appropriate fund and fund manager that we look to invest in the Focused Portfolio."

The Focused Portfolio returned 2.6% and 3% for the six-month and 12-month periods ending June respectively.

"It has been a pedestrian return, heavily impacted in particular by the strong run in oil and fossil fuels that most of the managers in this portfolio do not benefit from," Wright said.

"We've deliberately held a fairly high cash rating. It's been a very fluid environment in ESG and sustainable investing. With changes in regulation, we wanted greater certainty and understanding of those.

"We will be deploying more cash... but that has had an impact, certainly on the one-year return, which is not as strong as we would like. And obviously, we need to get that up above that level and closer to the long-term CPI-plus 4% target."

Wright highlighted the Impax Sustainable Leaders Fund and Janus Henderson Global Sustainability Fund performed well, returning investors 11.6% and 7.6% respectively.

He added the portfolio remains positioned to capture the longer-term thematics of the energy transition, sustainable infrastructure growth and those companies positioned for regulated climate reporting and improved governance.

"While performance has struggled in the short term, these thematics remain likely to play out in the long term," he said.

ASIC commenced proceedings in 2023 alleging breaches of directors' duties relating to Youpla Group - formerly the Aboriginal Community Benefit Fund (ACBF) - against Jones, Pattenden and fellow directors Jonathan Law, Michael Wilson and Geoffrey Clayton.

Youpla operated several funds providing funeral insurance, including ACBF Funeral Plans.

ASIC alleged that between September 2017 and November 2018, the directors maintained insurance arrangements with Crown Insurance Services, a Vanuatu-based company beneficially owned and controlled by Pattenden and Law.

ASIC also found that those arrangements were not in the interests of the ACBF entities and stood to benefit Pattenden and Law, and that insuring with Crown left those entities vulnerable to unaffordable premium increases.

As a result, First Nations people continued to make premium payments to ACBF being unaware of the risks to the viability of the funds and their ability to meet their commitments to members.

In July 2025, ACBF Funeral Plans was ordered to pay a $3.5 million penalty over misrepresentations the organisation was Aboriginal owned or managed when it was not. The penalty was in addition to the $1.2 million fine imposed in September 2023 for misleading consumers over lump sum payments.

Youpla Group and ACBF Funeral Plans have been in liquidation since 2022.

Following the October 30 hearing, Pattenden was ordered to pay $250,000 in penalties and has been disqualified from managing corporations for 15 years, as agreed by both ASIC and Pattenden.

Meanwhile, the court also found Jones breached his duties as a director, and his penalties will be determined followed by a hearing in the near future.

ASIC chair Sarah Court said tackling misconduct targeting First Nations people was an enduring enforcement priority for ASIC.

"ASIC has taken decisive action to ensure those responsible for serious governance failures and director misconduct that harmed First Nations people are held to account," Court said.

"These breaches went to the heart of trust and responsibility in the First Nations community.

"ASIC is committed to protecting vulnerable consumers who are put at risk."

The decisions in respect of Law, Wilson and Clayton have been reserved. ASIC said it will comment upon the conclusion of their hearing.

Most recently, Singh was with the Principles for Responsible Investment (PRI) in London, where she worked on investor engagement initiatives focused on net zero transition planning, climate governance and stewardship.

Before joining PRI, she worked at Deloitte Access Economics, delivering economic and climate policy analysis for government agencies, financial institutions and industry clients. Her work spanned climate transition, decarbonisation and economic policy.

"Aneesha's experience across climate economics and investor engagement will help us turn complex analysis into practical advice for clients. This is particularly critical for our ICIO clients where Aneesha will have a key focus," Frontier director of specialist services Paul Newfield said.

"Our clients need responsible investment support across a broad range of activities, from data and reporting to manager due diligence and proxy voting. This appointment strengthens our capacity to support those needs."

Meanwhile, Canadian pension fund OMERS has named Michael Kelly, currently chief legal officer and chief sustainability officer, as the new role of head of Europe, strategic relationships and chief sustainability officer. Kelly will take on the role in January 2027.

In taking on this new role based in London, Kelly will also continue to serve as OMERS most senior sustainability executive globally.

"Michael is one of our most senior executives with deep knowledge of our organisation and its global asset base, extensive leadership experience, a proven ability to build strategic partnerships, and a longstanding commitment to sustainability," OMERS chief executive Blake Hutcheson said.

"His appointment reflects the continuing importance of Europe to OMERS and will further strengthen our relationships and presence in that region."

OMERS chief operating officer Bob Aziz will assume oversight of OMERS legal and compliance functions.

In June, the scandal-hit consulting firm admitted its treatment of a whistleblower and investigation into their allegations fell short.

Allegations against KPMG by the whistleblower include misappropriation of confidential Lendlease board papers which were used by KPMG to pursue major audit tenders including Westpac and Dexus. There have also been serious concerns raised regarding independence and integrity during the pursuit of the Macquarie audit contract.

"Whilst we have been well served by KPMG as our external auditor since 2013, we have decided that now is the right time to run a competitive tender for our external audit in FY28 and beyond," Australian Ethical chair Steve Gibbs said.

The super fund said the decision follows continued scrutiny of KPMG Australia's audit practice, including information exposed by the Parliamentary Joint Committee on Corporations and Financial Services.

KPMG has since detailed a governance overhaul and action plan to address integrity issues across the firm.

"While KPMG's Action Plan and continued focus on strengthening governance, culture and ethics, and controls across the firm is acknowledged, Australian Ethical will not invite KPMG to participate in the tender process," Australian Ethical said.

The tender process will be completed during FY27, and shareholders will be asked to approve the appointment of the successful audit firm at the annual general meeting (AGM) in November 2027.

Macquarie's board recently rejected KPMG as its auditor starting 2027 and will instead proceed with incumbent auditor PricewaterhouseCoopers (PwC).

This came after Macquarie chair Glenn Stevens was grilled at the August 14 parliamentary hearing over the bank's reliance on Allens, KPMG's own lawyers, to review the embattled auditor's conduct. The investment giant was formally inquiring into KPMG's capability to deliver its audit, as well as the conduct of the audit itself.

Hand Heart Pocket, Minderoo Foundation, Paul Ramsay Foundation and Snow Foundation announced their collaboration at the Global Impact Investing Network (GIIN) conference.

Catalytic capital is investment that takes on greater risk, often by accepting lower financial return, than a typical investor would tolerate, to jump-start projects that do social or environmental good.

C3 Australia is inviting foundations, family offices, institutional investors and other capital providers to help build a more confident, connected and practical catalytic capital market in Australia.

"Australia has both the impact enterprises with the ideas and the impact investors with the appetite to deploy more catalytic capital," Hand Heart Pocket chief executive Sara Parrott said.

"What we haven't had is a shared effort to build the market, provide the tools and generate the data to give investors the confidence to act.

"If we can help shape new and better ways to deploy catalytic capital, so that more of it reaches impact enterprises, this will be one of the best ways for us to use both our philanthropy and our capital for impact."

While C3 Australia will not provide catalytic capital directly, it aims to shift traditional investment mindsets through grants, demonstrating how catalytic capital can manage risk, prove new models, and create pathways for mainstream investment.

The Australian foundations have approved an initial $10.5 million granting pool to launch C3 Australia, with funds to be managed by Paul Ramsay Foundation.

"Through our impact investing work, we have seen first-hand that catalytic capital can play a critical role in filling financing gaps for impact enterprises that conventional capital cannot," Paul Ramsay Foundation chief executive Kristy Muir said.

"Yet we know that identifying and surfacing those opportunities is one of the biggest obstacles, particularly in the for-purpose sector, a market that is already underfunded. We are delighted to help bring philanthropy together to form Catalytic Capital Consortium Australia in response."

Expressions of Interest for grants for evidence and market-building initiatives will be available for eligible Australian organisations from February 2027, with funding available for an initial three years.

C3 Australia is launched in partnership with the US-based MacArthur Foundation, one of the original architects of the Catalytic Capital Consortium (C3) - an initiative launched in 2019 to accelerate the flow of catalytic capital across global sectors and geographies.

"The success of the original Catalytic Capital Consortium shows what is possible when philanthropy works collectively. We have an opportunity to strengthen Australia's impact investment market and help more social and environmental solutions scale," Minderoo Foundation chief executive John Hartman said.

The call, led by the Finance for Biodiversity Foundation, follows the International Sustainability Standards Board's (ISSB) launch of a consultation on nature-related disclosures on October 22.

Nature-related dependencies, impacts and risks can affect companies across industries and markets, creating challenges for investors assessing financial resilience, allocating capital and managing portfolios.

The list of signatories include Rabobank, Federated Hermes, Nordea Asset Management, Rathbones and Etica Funds - Responsible Investments.

The signatories said voluntary reporting alone would not deliver the consistency required across jurisdictions, potentially leaving investors navigating different disclosure regimes.

While acknowledging practical considerations behind the ISSB's proposed approach, the group said nature-related risks have location-specific characteristics that may not be adequately captured by existing sustainability and climate-reporting requirements.

A dedicated standard could draw on the Taskforce on Nature-related Financial Disclosures framework, providing a common baseline for companies and investors, the statement said.

The group has called on the ISSB to use its consultation to clarify the pathway towards a formal standard, including how disclosures would remain comparable across markets and support analysis at the company, asset and portfolio levels.

It also urged governments and regulators to support the development of a standard to help implement Target 15 of the Global Biodiversity Framework, which calls for businesses and financial institutions to assess and disclose biodiversity-related risks and impacts.

The Finance for Biodiversity Foundation cited a 2026 global progress review that found limited government implementation of the target, with few countries introducing nature-related assessment and disclosure requirements.

The ISSB consultation closes on 19 February 2027. The foundation is inviting additional financial institutions to endorse the statement until 15 January 2027, as investors prepare their submissions.

👩🏽‍🦱 How First Nations women are building economic power for future generations

❓Question:

How can investing in First Nations women help close Australia's prosperity gap and create stronger communities, businesses and future leaders?

✅ Answer:

According to Rick Macourt, founder and managing director of First Nations Economics, First Nations women are often the backbone of their families, communities and local economies, making them critical drivers of long-term social and economic change.

Macourt says one of the biggest lessons has been the importance of trust. Through programs such as the Leah Armstrong Scholarship, recipients receive flexible support that allows them to decide what they need most to succeed, whether that's childcare, living expenses, technology or study costs. The approach shifts decision-making power to the women themselves rather than imposing rigid funding rules.

As Australia undergoes a major economic transformation through the clean energy transition, Macourt believes First Nations women are well positioned to play a greater role in shaping sustainable businesses, community development and future investment opportunities. He argues that empowering women today helps build stronger families, communities and intergenerational prosperity tomorrow.

Key insights:

🌟 First Nations women are often key decision-makers within families and communities.

🌟 Ngarimili was designed to support women throughout multiple stages of life and career development.

🌟 Flexible scholarship funding gives recipients greater control over their own success.

🌟 Financial literacy and entrepreneurship are powerful tools for economic empowerment.

🌟 Investing in women can create benefits that extend across entire communities.

🌟 The renewable energy transition could create new opportunities for First Nations women leaders and entrepreneurs.

🚩 Risks:

🚩 Structural barriers continue to limit educational and economic opportunities.

🚩 Short-term funding models can restrict long-term impact.

🚩 Overly prescriptive scholarship programs may fail to meet recipients' real needs.

🚩 Economic gaps can persist across generations without targeted support.

🚩 Major economic transitions may overlook First Nations voices and leadership.

⚠️ Things to watch:

⚠️ Growing demand for programs designed specifically for First Nations women.

⚠️ New approaches to financial wellbeing and economic self-determination.

⚠️ Increasing focus on entrepreneurship and leadership development.

⚠️ Emerging opportunities linked to the clean energy transition.

⚠️ Greater recognition of First Nations women as drivers of community prosperity.

💡 Why it matters:

Closing the First Nations prosperity gap requires more than policy change. It requires investment in the people already creating change within their communities. By supporting First Nations women through education, financial empowerment and leadership opportunities, organisations can help create lasting economic benefits that flow across generations.

🎙️ Sources:

Rick Macourt - founder and managing director, First Nations Economics

Michelle Baltazar - Host, The Greener Way

⏱️ Timestamps:

00:31 - Why empowering First Nations women matters

01:39 - Understanding the prosperity gap

03:25 - The story behind First Nations Economics

04:38 - Why women are central to community prosperity

05:13 - Introducing the Ngarimili ecosystem

06:25 - Supporting entrepreneurship and leadership

07:43 - Lessons from scholarship recipients

08:13 - Why trust matters more than red tape

09:04 - Rethinking how scholarships are delivered

10:35 - Financial literacy and economic empowerment

11:31 - Building intergenerational wealth

12:28 - Lessons from Indigenous economic models overseas

13:02 - Opportunities in the clean energy transition

13:34 - Sustainability through a First Nations lens

15:23 - Creating ownership, not dependency

16:00 - Building prosperity for future generations

🌿 We record on Gadigal Land and pay our respects to the traditional custodians of Country and elders past and present.

Earlier this year, Treasury consulted the industry on a sustainable investment product labelling regime, but there is currently no legislation governing how such products are labelled.

Turner told Financial Standard that labelling can give the industry a common language and can help firms like Koda Capital in their process, but it is not a replacement for due diligence.

"Regardless of any legislative regime in the market, I think we would never start and stop with a label," she said.

"How we're thinking about it is how and why a manager looks at ESG. What are the ethical reasons? Are they doing it for risk mitigation? Are they seeking to contribute to positive impact? How does that fit with their investment philosophy and process?

"And then, what's sitting within their portfolio? Are there material ESG risks and opportunities? Are they being appropriately managed? We look at the governance and how it gets implemented in practice. A fund manager can have great policies and programs, but what happens in the day to day? How transparent are they with investors?"

Turner noted there is no dearth in the number of new sustainable products coming into the market.

She said sustainable products are strongest in listed equities and fixed income, with a growing number of high-quality offerings emerging in private debt and alternatives.

"Whether that's private equity or infrastructure, those asset classes really lend themselves to sustainable and impact products, and [there are] some really exciting, great products in that part of the market," she said.

She pointed to the Responsible Investment Association Australasia (RIAA) research on consumer demand for responsible investing, which found that 88% of Australians expect their superannuation to be invested responsibly and ethically.

Yet, the research said 78% of them are concerned about greenwashing and misleading marketing within the financial sector.

"If there's this demand for investment but a lack of confidence, then we need to do something to bridge that gap," she said.

"And I would hope, if and when there is regulation around product labelling, that it really does take that consumer lens on board."

The sustainable thematic equity team is now led by Lei Qiu, who took on the post after the merger of the sustainable thematic and disruptive innovation research teams.

Qiu is the head of thematic equities, responsible for the AB Global Disruptors, Global Technology, Strategic Research and Strategic Research Balanced strategies.

Qiu joined the firm in 2012 and has been a portfolio manager at since 2016. She previously worked as a senior research analyst, focusing on the technology, media and telecom sectors. Before AllianceBernstein, she founded Phidias Capital Management, a technology-focused asset-management company.

As part of the overhaul, portfolio managers Dave Wheeler and Ben Ruegsegger will exit the fund manager following respective tenures of 18 years and 25 years. Senior quant portfolio analyst Amy Yang will subsequently transition to a new role in the team.

Daniel Roarty previously led the sustainable thematic equities team as chief investment officer.

He stepped down from the role this year but remains as a senior adviser to the sustainable thematic equities platform.

Among the major changes, the fund manager recently announced that Seth Bernstein will retire as chief executive on 31 March 2027 and will continue to support the firm as a member of the board of directors.

Onur Erzan, who is the current president of AllianceBernstein, will take over the top job on 1 April 2027. He retains the role of president.

Erzan joined the firm from McKinsey & Company in 2021 as head of global client group after a near two-decade tenure, where he was a senior partner and co-leader of its wealth and asset management practice.

"Onur is an exceptional leader with deep experience across asset management and insurance," said Mark Pearson, the chief executive of Equitable Holdings, AllianceBernsteins's parent company.

"Since joining AB, he has helped shape the firm's strategy, expand its capabilities and position the business for continued growth. At the same time, this transition is an opportunity to recognise Seth's extraordinary contributions over the past decade. He has led AB through a period of significant growth and helped strengthen the partnership between Equitable and AB at a defining moment for our company."

The Trillium ESG Global Equity Fund and Global Sustainable Opportunities Fund had about $16 million and $6.2 million respectively in assets at the end of September.

Perpetual Investment Management, as the responsible entity, told investors it was in their best interest that the two funds be wound up due to them "not attaining, or expected to attain, the scale required to operate sustainably and in a cost efficient manner."

The ESG Global Equity Fund, a wholesale managed fund, was incepted on 4 August 2020 and aimed to provide investors with long-term capital growth through investment in quality global shares using an integrated ESG approach. It also aimed to outperform the MSCI All Countries World Net Total Return Index (AUD).

This fund was based off the equivalent US retail fund that was launched in 1999.

The Global Sustainable Opportunities Fund was incepted at the same time, aimed to provide investors with long-term capital growth through investment in global companies driving the transition to a more sustainable economy. It tracked the MSCI World Net Total Return Index (AUD).

This strategy was based on its US equivalent, which was set up in 2008.

The two funds were terminated on October 8 with investors receiving their funds about one week later.

The ESG-focused fund manager, which aims to "advance humankind towards a global sustainable economy," has about US$5.3 billion in assets under management.

Perpetual acquired the US fund manager based in Boston in 2020 for $63.8 million.

The parent company recently reported $9.6 billion in net outflows during the September quarter, weighing on funds under management. The corporate trust division, meanwhile, reached a record $1.4 trillion in funds under administration.

The PRI is a global network of investors committed to better understanding how environmental, social and governance (ESG) issues affect long-term investment outcomes. Future Fund's reporting against the PRI framework will commence from the 2026-27 financial year.

The new stewardship model comprises of three key elements: governance and strategy, responsible ownership, and monitoring and reporting. During the financial year, Future Fund exercised its voting rights in publicly listed Australian companies, participating in 252 Australian shareholder meetings and voting against board recommendations in 12.2% of all resolutions.

This was part of its multi-year program to uplift responsible investment capability and strengthen the connection between stewardship activity, investment priorities and reporting.

"Active engagement with boards and management teams is a key component of our investment stewardship program," the annual report read.

"Through engagement, we seek to understand and influence how investee companies manage material governance, ESG and climate-related risks and opportunities, supporting long-term performance, resilience and value protection."

Future Fund's engagement activities primarily focused on companies in ASX-listed equities portfolio.

"During 2025-26, we directly engaged with 60 ASX companies across 81 meetings...Issues discussed across the program included, but were not limited to, board composition, management quality, remuneration, regulatory compliance, workplace culture, diversity and inclusion, modern slavery, Indigenous engagement and cultural heritage, responsible technology, and climate change," the report read.

The fund delivered a 14.7% return in 2025-26, adding $37.4 billion to its portfolio as it marked 20 years with stronger climate transparency and expanded stewardship.

It reached a record $289.7 billion at 30 June 2026, more than tripling the government's initial contribution. Returns averaged 12% a year over the three years to June, generating a further $83.6 billion.

The results come as the Future Fund navigates geopolitical fragmentation, technological disruption and climate-related risks, with its latest annual report outlining how it is positioning the portfolio to withstand changing market conditions.

A spokesperson said the fund's diversified investment approach was designed to capture opportunities while managing risk across a range of potential scenarios.

"The Future Fund's returns of 14.8% over the past financial year has added $37.4 billion to benefit the country, while the six other funds invested by the board have contributed to a breadth of important policy areas," the spokesperson said.

The report also details the fund's first climate disclosure, setting out how climate-related risks and opportunities are identified, assessed and managed across its investments. The fund considers both the physical effects of climate change and the economic consequences of the transition to a lower-carbon economy.

The annual report also tracked progress under the governments revised investment mandate, including investments in infrastructure, the energy transition and housing supply where these align with the fund's obligation to maximise risk adjusted returns.

The board now manages $356 billion across seven public asset funds, supporting areas including disability services, medical research, disaster preparedness and housing, alongside the Commonwealth's long-term financial position.

The Blackstone Energy Transition Partners V (BETP V) began its investment period in June and has already funded three distinct platform companies, including Kindle, Fisterra and Viridon, while also making three acquisitions focused on energy efficiency and resiliency.

Blackstone Energy Transition Partners global head David Foley said the significantly oversubscribed fund reached its hard cap and builds on the strong performance of the strategy's prior vintages.

"We believe there is a generational opportunity for experienced investors in the energy transition to provide solutions to the challenges posed by growing demand for electricity," Foley said.

"By backing exceptional management teams with flexible, patient equity capital to increase manufacturing capacity, recruit and train skilled labor and construct new critical energy infrastructure assets, BETP is delivering those solutions and in the process building these companies to scale, creating jobs and generating lasting value for our investors.

"We are deeply grateful for the trust of our investors and look forward to deploying BETP V in investments that advance the transition to a more affordable, reliable and cleaner energy future."

BETP seeks to build energy companies that deliver cleaner, more reliable and more affordable energy to meet growing global needs. BETP's energy transition investments have generated, as of June 30, a 34% net IRR since 1997.

Since 2025, BETP has committed over $16 billion (US$11bn) in new equity investments across the energy transition ecosystem, including critical energy equipment, essential services, energy data analytics, and natural gas-fired power infrastructure.

The paper Getting the Balance Right: Modern Slavery Due Diligence and SMEs explores practical ways to reduce unnecessary burden on SME suppliers while addressing modern slavery risks.

Anti-slavery commissioner Chris Evans said SMEs are increasingly asked to complete questionnaires, agree to contractual obligations and provide assurance, often for multiple customers, at different times and in different formats, despite usually falling outside reporting obligations under the Modern Slavery Act.

"SMEs are essential to Australia's response to modern slavery. This is not a call for less due diligence, it is a call for smarter due diligence," Evans said.

"Modern slavery risks can arise in businesses of any size, including SMEs. The challenge is ensuring that due diligence efforts are focused on genuine risks, rather than repetitive administrative processes."

The paper proposed to embed greater proportionality, so information requests to suppliers match the level of risk and a common due diligence infrastructure, so supplier information can be provided once and shared across customers, with mutual recognition of social compliance audits.

It also suggests sector-level collaboration and capacity building, with SMEs at the table.

The paper also notes concerns about administrative burden should not be interpreted as suggesting that SMEs present lower modern slavery risks or should be subject to less scrutiny, and risks of severe exploitation can arise within businesses of any size.

"The policy challenge is, therefore, not whether SMEs should be engaged in modern slavery due diligence efforts, but how reporting entities can engage SME suppliers in ways that are proportionate and risk based," the paper read.

"Better targeting due diligence towards higher-risk circumstances could strengthen risk management outcomes while reducing the administrative burden."

"The practical reality is that gas is likely to play a transitional role for decades rather than years," he said.

In UniSuper's ninth and final Climate Report, Pearce noted energy security and a fragmented global climate policy is reshaping the global energy and climate landscape.

"Governments are increasingly prioritising reliability and affordability alongside, and in some cases ahead of, decarbonisation objectives," Pearce said.

"Geopolitical instability, cost-of-living pressures, and the rapidly growing energy demands of industries such as artificial intelligence and data centres have fundamentally reshaped policy priorities."

The divergence between European Union which continues to strengthen climate framework and the United States going the opposite direction has created additional complexity and uncertainty, he said.

With gas playing an increasingly important role, Pearce said, companies are adjusting accordingly.

"Across industries, net-zero commitments that once reflected ambitious aspirations are being revised to align more closely with what organisations believe can be credibly delivered," he said.

"Industry alliances are experiencing declining membership and, in many cases, adopting more measured language and commitments."

This context is highly relevant for a diversified investment fund such as UniSuper, he added, whose investments ultimately represent ownership interests and debt exposures across a wide range of underlying companies.

"Changes in government policy and corporate commitments inevitably influence the pace and scale of the transition that companies can realistically undertake," Pearce said.

"Nevertheless, our commitment to engaging constructively with investee companies remains unchanged."

For the 2027 financial year and onwards, UniSuper will be reporting under Australia's new mandatory climate reporting standard (AASB S2), which will be incorporated into the annual report and financial statements.

UniSuper will move away from reporting climate emissions data for individual investment options and will now provide whole-of-fund figures as it prepares for mandatory climate reporting.

"Under AASB S2, UniSuper will be required to disclose its absolute gross greenhouse gas emissions, expressed in metric tonnes of CO₂ equivalent, for the reporting period ending 30 June 2027," Pearce said.

"In preparation for this requirement, our climate-related metrics are now presented at the whole-of-fund level rather than by individual investment option, as was the case in previous years."

Further, UniSuper has reduced its assessment of investee companies' Scope 3 emissions this year.

The $175 billion super fund said one notable pattern it observed with the early climate reporting was the uptake of transitional relief for Scope 3 emissions, with two-third electing to apply for the relief.

"As reporting of Scope 3 emissions was not mandatory during the transition period, many companies elected not to disclose this information. The resulting data gaps have limited both the comparability and usefulness of this metric," Pearce said.

UniSuper reported 19.9 tonnes of CO₂-equivalent per year for every $1 million invested, as of 30 June 2026, across 75% of its portfolio.

In comparison, the ASX 300 sits at 43.5 tonnes and the MSCI World Index at 17.1 tonnes.

🌳 Should banks stop financing deforestation in Australia?

❓ Question:

What role do Australian banks play in deforestation, and how can financial institutions better manage nature-related risks within their lending portfolios?

✅ Answer:

According to Max Hamra, corporate accountability analyst at the Australian Conservation Foundation (ACF), Australia's major banks are linked to significant deforestation activity through agricultural lending, highlighting the growing importance of nature-related financial risks. ACF's latest investigation identified more than 16,000 hectares of deforestation linked to properties financed by major lenders, with impacts including the loss of high-carbon forests and critical habitat for endangered species such as koalas and greater gliders.

Hamra argues that banks should increasingly treat deforestation as a core risk management issue rather than solely a sustainability concern. He believes nature-related risks should be embedded within credit and lending processes, with leadership from boards, executives and risk teams helping drive action across institutions.

Rather than demanding immediate deforestation-free commitments, ACF advocates a more practical approach. It wants banks to first build the data, systems and stakeholder engagement needed to understand the issue, establish clear pathways for improvement, and then introduce commitments that are achievable and measurable. Hamra says the goal is to align banking practices with Australia's broader environmental objectives, including global commitments to halt nature loss and deforestation by 2030.

Key insights:

🌟 More than 16,000 hectares of deforestation were identified in the latest ACF investigation The report linked a significant number of deforestation cases to land with bank-financed mortgages, highlighting the scale of nature-related risks within agricultural lending portfolios.

🌟 All major Australian banks were linked to investigated cases

🌟 Nature risk is becoming a mainstream financial issue

🌟 Investor engagement is accelerating

🌟 Some Australian banks are beginning to develop frameworks

🌟 Strong leadership is critical

🚩 Risks:

🚩 Deforestation creates significant emissions

🚩 Biodiversity loss threatens ecosystems

🚩 Agricultural productivity may suffer over time

🚩 Banks face growing reputational and financial risk

🚩 Progress across the sector remains uneven

⚠️ Things to watch:

⚠️ Deforestation-free commitments require substantial preparation Banks need better data, systems and stakeholder engagement before they can confidently implement and monitor meaningful commitments.

⚠️ Most deforestation identified was linked to agricultural expansion The report found that approximately 99% of investigated clearing related to expanding agricultural activity rather than residential development.

⚠️ Global expectations are rising quickly International banks are increasingly making nature-related and deforestation-related commitments, potentially creating pressure on Australian institutions to follow.

⚠️ Nature loss is moving up the ESG agenda After years of focus on climate emissions, biodiversity and natural capital issues are emerging as major priorities for investors and financial institutions.

💡 Why it matters:

As global commitments to halt nature loss by 2030 approach, financial institutions will face increasing pressure to understand how lending decisions impact ecosystems, biodiversity and long-term economic resilience. The debate is no longer whether nature matters to finance, but how quickly institutions can integrate it into decision-making.

🎙️ Sources:

Max Hamra - corporate accountability analyst, Australian Conservation Foundation

Michelle Baltazar - Host, The Greener Way

⏱️ Timestamps:

00:00 - Why ACF is focusing on banks and deforestation

01:05 - How the investigation was conducted

02:36 - Key findings from the latest report

04:13 - Emissions impact of deforestation

05:29 - What ACF wants banks to do next

07:07 - Why nature risk is rising up the agenda

07:43 - The role of banks' risk teams

09:36 - How Australian banks compare globally

11:50 - Are local banks falling behind?

12:00 - Investor engagement and shareholder pressure

4:22 - Housing, agriculture and land clearing debate

15:57 - Soil health and ecosystem degradation

16:43 - Common misconceptions about ACF's proposals

17:36 - Why commitments should follow preparation

18:16 - Balancing ambition with practical action

🌿 We record on Gadigal Land and pay our respects to the traditional custodians of Country and elders past and present.

ARENA was established by the Australian government in July 2012 to support global emissions reductions by accelerating innovation and the deployment of renewable energy, electrification and energy efficiency technologies.

It has supported more than 850 projects with over $5 billion in grant funding, unlocking a total investment of almost $15 billion in Australia's renewable energy industry.

"I have advised the minister, ARENA board and staff that I will not seek reappointment as chief executive when my current term concludes in August next year," Miller said.

"By then, I will have had the privilege of leading ARENA for nine years. I am grateful for the confidence shown in me by successive governments, and, more importantly, in ARENA and its mission."

ARENA chair Marianna O'Gorman thanked Miller for his service to ARENA.

"Darren is a compassionate, collaborative and visionary leader who cares deeply about ARENA and Australia's energy transition. His contribution to ARENA has been immense," O'Gorman said.

"I look forward to continuing to work closely with him until the end of his term next August."

Miller said when he joined ARENA in 2018, the organisation had limited funding remaining and faced an uncertain future.

"Today, the agency has been entrusted to deliver more than $14 billion and has a much broader and more important role in Australia's energy transition," he said.

"Leading ARENA has been the privilege of my professional career and I couldn't be more pleased with what the organisation has achieved together during my time as chief executive. None of this would have been possible without the talented people I have worked with across ARENA, government, industry and the research community.

"With strong momentum, a refreshed board and an excellent leadership team in place, I believe this is the right time to prepare for a new chief executive to lead ARENA into its next chapter."

Demand has spanned from broad ethical and responsible investment strategies, climate and clean-energy funds, critical minerals, carbon-control strategies, green bonds and diversified ethical portfolios.

"The sector has come a long way since its beginnings in 2015. In a little over 11 years, it has grown more than 250-fold, highlighting how ethical investing has moved from a niche preference into the mainstream," Betashares responsible investments manager Vinnay Cchoda said.

He added growth had been steady since the heady years of 2020 and 2021.

"You could argue that it's picking up again in terms of interest, but it's slow and steady is how I would put it. More importantly, from our perspective, the funds in these products are very sticky," Cchoda said.

"Investors are focused on aligning their investments with their values and hence are more focused on what's under the hood rather than fancy performance metrics."

Cchoda also urged investors to look beneath the label.

"Ethical and responsible ETFs can have very different screening methodologies, portfolio exposures and approaches to stewardship, so looking under the hood before investing remains as important as ever," he said in a statement.

He said that understanding a fund's stewardship approach, including how it engages with companies and votes its proxies, helps investors figure out how true to label a product is.

Investor interest is also broadening beyond shares, with fixed income and multi-asset strategies now accounting for almost $1 billion in flows.

"It's not just an equities show anymore," Cchoda said.

He said investors had more recently been moving money into ethical fixed income and multi-asset funds, reflecting the widening range of responsible investment options on offer.

While low-cost responsible passive funds continue to see the majority of fund flows, active strategies, however, are fragmented between winners and losers, with some funds folding due to lack of scale.

Towards Cross-Taxonomy Alignment: Insights from Examining Interoperability between the Australian and EU Sustainable Finance Frameworks is published by ISS STOXX Sustainability in partnership with the Australian Sustainable Finance Institute (ASFI).

The report explores the extent to which existing EU Taxonomy data can be leveraged to support assessments under the Australian Sustainable Finance Taxonomy, examining interoperability at the activity, company, and portfolio levels.

"The report's findings are encouraging for Australian companies and investors seeking to operate in an increasingly interconnected sustainable finance landscape," ASFI executive manager of standards and market practice Nicole Yazbek-Martin said.

"The ability to leverage existing EU Taxonomy data to support Australian Taxonomy assessments has the potential to improve efficiency, reduce reporting burdens, and enhance comparability across markets.

"Equally important, the research offers practical guidance on the similarities and differences between the frameworks, helping market participants make more informed and confident decisions."

ASFI recently also launched a scoping project to expand Australian Sustainable Finance Taxonomy to climate change adaptation and resilience.

Of the Australian Taxonomy activities assessed, more than half have strong-to-exact EU Taxonomy activity proxies, comprising 35% classified as strong and 17% as exact. This degree of correspondence can reduce the need for investors to collect or estimate new activity-level information for every company, the report found.

"Sustainable finance taxonomies are developing across jurisdictions, yet differences between frameworks can create complexity for investors assessing alignment across markets," ISS STOXX head of sustainability business for APAC Julia Leske said.

"This analysis highlights how existing EU taxonomy data can support assessments under the Australian taxonomy, while helping investors understand where differences between the frameworks require further consideration."

Financial Standard is owned by ISS Market Intelligence, which is part of ISS STOXX. 

The fund size has grown to $77 billion (NZ$94.35bn), excluding tax, and achieved a 14.17% return after costs and before tax, in FY26.

NZ Super chief executive Jo Townsend said it is now in its second year reporting under its strengthened GHG emissions assessment methodology, and climate change remains a key focus area for sustainable investment moving forward.

"Climate change remains a key focus as we seek to further enhance our sustainable investment approach," he said.

"Sustainability-related reporting continues to be a dynamic area. Our approach is to maintain proportionality, integrity and transparency in our disclosures, while allowing time for the quality and reliability of data, tools and practices to mature."

She said sustainable investment continues to deliver strong returns to its members, and in the current financial year the super fund will continue to strengthen portfolio construction and enhance investment outcomes through various accounts, including stepping up its commitment to sustainable investment.

During the financial year, NZ Super also achieved strong ratings since the 2025 PRI Assessment report, recognised by RIAA, and achieved a 100% score in Global SWF's annual Governance, Sustainability and Resilience Scoreboard.

"These results provide useful benchmarking. However, we recognise that sustainable investment is a fast-evolving area and we continue to look for ways to strengthen our approach," the report said.

As part of its 2026 Reference Portfolio review, the board endorsed the development of the continued development in sustainable investment, including the Sustainable Investment Roadmap for 2026-2030, as well as welcoming a new director for sustainable investment.

Key recommendations from WTW's five-yearly independent statutory review indicated the fund can aim for improved details in investment goals and targets, better balance of financial risk, and placing greater emphasis on systemic stewardship.

"In addition, we were encouraged to deepen our focus on the fund's real-world impacts through both our investments and stewardship activities," the report noted.

The report also addressed the recent judicial review that found its policies were not formulated in accordance with the relevant statutory requirements.

NZ Super accepted the court's findings and has published an updated set of Sustainable Investment policy documents, which utilises a standalone framework to describe the policies, standards and procedures.

"The changes to the policy documents respond to the court's findings by explaining sustainable investment activities and decision-making processes in detail, including identifying the relevant standards, explaining tests to be applied, and recording who is responsible for key decisions," the report said.

"These changes support consistent decision-making and provide greater transparency about how decisions are made while preserving the flexibility required to apply our statutory mandate in complex and evolving circumstances."

The ethical fund manager said wholesale redemptions outweighed the inflows from new products and client wins.

Net flows into the superannuation business, however, rose to $130 million for the quarter, up on the corresponding period last year.

The total funds under management (FUM) came to $14.43 billion in the quarter, a drop of $70 million from the $14.5 billion it reported at the end of FY26.

"The first quarter demonstrated the continued momentum and resilience of our business," Australian Ethical managing director John McMurdo said.

"While challenging investment markets and some wholesale redemptions affected headline FUM, these factors do not change our confidence in the long-term growth opportunity."

In its annual report, Australian Ethical said middle-market inflows had provided some resilience against higher-than-usual redemptions in its advised and direct channels during FY26, with further middle-market clients expected to land in early FY27.

It recently launched the Australian Ethical Balanced Income Fund for wholesale investors, including foundations and not-for-profits. This is supported by the Reichstein Foundation as a founding investor.

Australian Ethical said positive flows in the super business and its expansion in the middle market channel with the launch of such products demonstrated continued underlying momentum of the business.

"We welcomed more members to our super fund, increased superannuation net flows compared to the corresponding quarter last year and launched a new middle market product with the support of a founding investor," McMurdo said.

"We remain focused on attracting and retaining super members, expanding our reach in the middle market and delivering long-term value for customers and shareholders."

In the annual report, chief investment officer Ludovic Theau highlighted the growth in its private markets business, saying the firm's scale gave it a structural advantage in targeting transactions in the $25 million to $75 million range that larger funds tend to overlook.

"Investment performance during the quarter reflected a challenging market environment with inflationary pressures, higher interest rates and geopolitical uncertainty weighing on Australian equities," Australian Ethical said.

"This was offset by stronger performance from international equities and private markets. Australian Ethical remains focused on its long-term investment approach and continues to identify opportunities where market volatility and valuations create attractive entry points."

As part of the merger, the fund will be renamed the Hearts & Minds Australian Equities Growth Fund. The change will help the fund build on an established track record of Hearts & Minds and expand its reach to a broader investor audience.

Third Link Growth Fund founding director and portfolio manager Chris Cuffe said: "Hearts & Minds is a natural home for Third Link. The two organisations share a commitment to bringing together leading investment managers, creating value for investors and using investment success to support the community."

Hearts & Minds Investments provides investors with exposure to a global equities portfolio built from investment ideas contributed by fund managers on a pro bono basis. In place of traditional investment management fees, Hearts & Minds Investments supports leading Australian medical research organisations.

"This transition will preserve the elements that have made Third Link distinctive while giving the fund access to the broader resources and reach of Hearts & Mind," Cuffe said.

Cuffe is currently the chair of Hearts & Minds Investments Limited, which listed on the ASX in November 2018.

Hearts & Minds Investments managing director Richard Howes welcomed Third Link's investors, managers and team to the firm.

"Third Link has an impressive record of combining investment performance with charitable impact. We are pleased to have the opportunity to build on that foundation and to broaden the fund's reach," Howes said.

"We are grateful to Chris Cuffe for what he has built and for agreeing to transfer management of the fund for nominal consideration in order that we can continue to pursue philanthropic objectives in relation to the fund and ensure its long-term sustainability."

Since inception, the Third Link Growth Fund has delivered annualised investment returns of 9.22% and donated over $25.3 million to Australian charities.

"This next chapter represents an opportunity to build on everything that has made Third Link distinctive over the past 18 years, while benefiting from the broader resources, investment expertise and distribution network of Hearts & Minds," Cuffe said.

"We extend our sincere thanks to our investors, underlying fund managers and charity partners for their ongoing support and contribution to Third Link's journey."

Investing in a Climate Resilient Australia report noted as physical climate risks intensify, investing in adaptation and resilience will be central to Australia's long-term economic and fiscal stability.

"While the Australian Taxonomy's initial development phase focused on climate change mitigation, rising physical risks make adapting and building resilience to climate change an increasingly urgent priority," the report read.

"By providing credible, usable guidance to identify activities and measures that support adaptation and resilience, an expanded taxonomy can help mobilise capital to address Australia's climate resilience investment gap."

The report noted at present there is no consistent way for governments, businesses or financial institutions to translate priorities for climate adaptation and resilience into activity-level definitions and criteria that can support investment and mobilise capital at scale.

"Expanding the Australian Taxonomy to adaptation and resilience would give actors across the economy a common basis for identifying investments that make a credible contribution to Australia's national adaptation priorities," ASFI executive manager of standards and practice Nicole Yazbek-Martin said.

"An expanded taxonomy would also help align actors across lending, investment, insurance and public financing, turning individual resilience actions into a more coordinated response at scale."

For institutional investors the report noted the taxonomy would help inform due diligence, capital allocation, investment mandates and portfolio reporting. It would also help improve market transparency which would in turn improve market signals and investor demand.

The scoping project is overseen by a Steering Committee comprising representatives from financial institution funders and government observers including IFM Investors, National Australia Bank, Insurance Australia Group, Allianz Australia, Clean Energy Financial Corporation and Australian Prudential Regulation Authority.

New Forests Australia New Zealand Landscapes and Forestry Fund (ANZLAFF) and ANZLAFF Sub 4 (New Forests ANZLAFF) are set to acquire the forestry plantations. Allianz will be a minor co-investor in the transaction.

The New Forests ANZLAFF funds are managed by New Forests Asset Management. The latter also manages the New Forests Australia New Zealand Forest Fund (ANZFF), which currently holds minority interests in two softwood log plantation estates within the Green Triangle forestry region, located between south-eastern South Australia and south-western Victoria. This is a separate fund from ANZLAFF.

AKD is an integrated Australian softwood forestry and timber processing company with softwood sawmilling operations. It has operations in Victoria, New South Wales and Queensland and more than 11,000 employees.

Together with Heywood Plantations, the two estates consist of softwood log plantations across four regions being Green Triangle, Central Victoria (Ballarat and Otway), southern New South Wales and north-east Victoria (Murray Valley) and Central New South Wales (Central Tablelands).

The total area amounts to approximately 10,933 hectares. The acquisition does not include AKD's sawmills.

Global investment manager New Forests has $10.6 billion in assets under management.

It invests in nature-based real assets, including timber plantations, conservation areas, carbon and conservation finance projects, agriculture, timber processing and infrastructure.

The ACCC said it assessing the impact of the acquisition on competition and is seeking stakeholder views. It is taking submissions or information in response to its questions regarding the acquisition by October 19.

One of the questions include the potential impacts the acquisition may have on competition, including whether any business controlled or managed by New Forests is a close competitor to the estates.

This would allow the taxation office to pause debt recovery against victim-survivors, pursue the debts from perpetrators where the abuse involved fraud or other actionable misconduct, and, where appropriate, waive the victim-survivor's debt.

The consultation paper recognised existing administrative responses for victim-survivors remain subject to the governing legal framework for tax debt recovery, and as a result, they may continue to face the psychological and practical burden of debts that arose through abuse, all while the perpetrator generally escapes accountability.

"Financial abuse is often one part of a broader pattern of coercion, control and abuse designed to remove a person's independence and limit their choices," assistant treasurer Daniel Mulino said.

"The effects can follow victim-survivors for years, long after the relationship has ended, through debts, financial insecurity and lost opportunities.

"We have a responsibility to ensure our financial systems cannot be used as a tool for abuse, and that victim-survivors receive the support they need to rebuild their lives."

To pause recovery of a debt, the ATO commissioner would need to be reasonably satisfied, among other things, that the debt would not have arisen but for the perpetrator's actions, and that those actions involved fraud, dishonesty, gross negligence, or intentional or reckless disregard of the tax law.

Attorney-General Michelle Rowland said the consultation seeks to provide the courts greater flexibility to transfer a tax debt to the person responsible for financial abuse in family law proceedings.

"The change would mean victim-survivors would no longer need to engage the ATO's administrative processes when they are already before the courts," Rowland said.

"This government is committed to breaking down barriers for victim-survivors, because our system should help them recover from family violence."

The consultation is divided into two parts. Part one seeks feedback on reforms relating to fraud against the taxation system announced in the 2026-27 Budget. Part two seeks feedback on possible additional options to strengthen responses to financial abuse, coercive control, systems abuse and related debt outcomes across the taxation, superannuation, social security, family payment and child support systems.

Treasury is seeking feedback on the consultation until 27 November 2026.

The Gender Equality Insights 2026: Unlocking Australia's Workforce Potential report, by the Bankwest Curtin Economic Centre (BCEC) and the Workplace Gender Equality Agency (WGEA), found that workplace gender equality has improved, employers are still losing experienced talent before it reaches the highest levels.

BCEC director and report co-author Alan Duncan said stronger promotion rates for women at some stages of their careers did not translate into equal representation at the top.

"Promotion rates tell us who is taking the next step. We also need to understand who keeps progressing through successive leadership tiers - and who stays," Duncan said.

The report found a significant gap between the availability of flexible work and its accessibility to senior employees. More than 90% of organisations offer flexible start and finish times in 2024-25, while 86% offered part-time work. However, just 13.2% had designed management roles to be performed part-time.

BCEC senior research fellow Silvis Salazar said flexibility needed to be embedded in career pathways rather than becoming a barrier to advancement.

"Offering part-time work is very different from designing senior jobs that can actually be done part-time," Salazar said.

The findings also highlighted the influence of unpaid care, with women undertaking more domestic work than their partners even when both work full-time. Only 11% of organisations had a target to increase men's use of parental leave.

WGEA chief executive Christine Castley said employers needed to examine how recruitment, promotion, retention and working arrangements shaped the talent pipeline.

"Making better use of the talent already available to us is good for workplace gender equality, good workforce strategy and good business," Castley said.

The analysis also found ASX-listed employers with more women in leadership consistently outperformed peers on measures including market value and investor returns.

The report recommends stronger workforce data, clearer leadership pathways, targeted action on pay gaps and flexible senior roles that allow employees to progress while managing caring responsibilities.

🌏 Is climate tech the next big investment opportunity in Asia-Pacific?

❓ Question:

Why are investors increasingly looking at climate technology, and what should Australian investors consider when assessing climate tech opportunities across Asia-Pacific?

✅ Answer:

According to Ayush Kapila, co-founder and operating partner of Vitality Capital Partners, climate technology is becoming a major investment theme because many of the technologies needed to achieve net zero have not yet been fully developed or commercialised. He argues that around 30% to 40% of the technologies required for net zero remain in the prototype stage, creating significant opportunities for investors willing to back innovation.

Kapila believes the greatest opportunity sits in Asia-Pacific, which accounts for more than half of global emissions and a large share of future energy demand growth. Rather than viewing climate tech as a niche sustainability investment, he sees it as a broad opportunity to support commercially viable businesses solving everyday problems across energy, transport, food systems, agriculture, water, industry and the circular economy. For investors, success depends not only on the environmental benefits of a technology, but whether it can deliver efficiency gains, competitive costs and strong commercial returns.

🌟 Asia-Pacific is one of the world's largest climate tech opportunities

More than half of global emissions originate from the Asia-Pacific region, creating a significant need for technologies that can support decarbonisation while meeting growing energy and infrastructure demand.

🌟 Many net-zero technologies are still being developed

Kapila estimates that 30% to 40% of the technologies needed to achieve global net-zero targets remain in the prototype or development stage, creating opportunities for venture capital and private market investors.

🌟 Climate tech extends far beyond renewable energy

The sector includes innovations across sustainable aviation fuel, water treatment, food systems, transport, industrial efficiency, circular economy solutions, agriculture and blue economy technologies.

🌟 Cost competitiveness is critical for success

Technologies that reduce costs and improve efficiency are more likely to gain widespread adoption than those requiring customers to pay a "green premium."

🌟 Australia's climate tech ecosystem is growing rapidly

Vitality Capital Partners identified approximately 690 climate tech companies headquartered in Australia, with a median founding year of 2021, highlighting the sector's strong recent growth.

🌟 Commercial returns remain the priority

Kapila argues that climate tech investing does not require sacrificing returns and should be viewed as a commercial growth opportunity rather than solely an impact investment.

🌟 Strong founders often emerge from established industries

Many successful climate tech founders have backgrounds in banking, funds management, large corporates and institutional organisations, bringing industry expertise to emerging challenges.

🌟 New capital structures are emerging

Initiatives involving institutional investors, government-backed organisations and structured finance are helping bridge funding gaps for climate-related businesses.

🚩 Early-stage investing remains high risk

Many climate technologies are still relatively young businesses and face significant execution, commercialisation and scaling challenges.

🚩 Fund size mismatches can limit institutional participation

Many climate venture funds are smaller than the typical allocation size required by large superannuation funds, making it difficult for institutions to deploy meaningful amounts of capital.

🚩 Liquidity remains a challenge

Venture capital investments often take longer to realise returns, creating potential conflicts with institutional investors' liquidity requirements.

🚩 First-of-a-kind projects carry significant execution risk

Capital-intensive projects and emerging technologies require experienced managers and operators to successfully scale businesses.

🚩 Market conditions remain difficult

Fundraising for early-stage ventures has become more challenging in recent years, creating additional pressure on managers and founders.

⚠️ Not every climate solution becomes a successful investment

Strong environmental credentials alone do not guarantee commercial success. Investors must assess revenue opportunities, scalability and market demand.

⚠️ Technology development timelines remain uncertain

Many solutions essential to future decarbonisation pathways have yet to reach commercial maturity.

⚠️ Investor expectations may not align with venture timelines

Climate technology investments often require longer holding periods before achieving exits or generating returns.

⚠️ Public perceptions can create barriers

Terms such as "climate", "impact" and "sustainability" can attract political or ideological debate despite underlying commercial opportunities.

💡 Why it matters:

Climate technology is emerging as one of the most significant investment themes of the net-zero transition. As governments, companies and consumers seek solutions to reduce emissions while maintaining economic growth, investors are increasingly looking at businesses that can deliver both sustainability outcomes and commercial returns. For Australian investors, the rapid expansion of climate tech across Asia-Pacific presents opportunities to access innovation in sectors ranging from energy and transport to food, water and industrial efficiency. However, the sector's early-stage nature means careful manager selection, diversification and risk assessment remain critical.

🎙️ Sources:

Ayush Kapila, co-founder and operating partner, Vitality Capital Partners

Michelle Baltazar, host, The Greener Way

⏱️ Timestamps:

00:00 - Why climate tech matters for net zero

01:12 - The origins of Vitality Capital Partners

02:00 - Climate tech companies in the portfolio

03:00 - Climate tech's role in an investment portfolio

04:03 - Why emerging technologies matter

05:00 - Australia's 690 climate tech companies

06:09 - Assessing climate tech investment opportunities

07:20 - Commercial demand, regulation and execution risk

07:33 - Who builds successful climate tech businesses?

08:37 - Why more superannuation money isn't flowing into climate tech

09:27 - Fund size and capital allocation challenges

10:34 - Liquidity and exit challenges

11:05 - Emerging investment solutions and structures

12:16 - The biggest misconceptions about climate tech

13:04 - Climate tech as a commercial investment opportunity

13:44 - The future of Vitality Capital Partners

🌿 We record on Gadigal Land and pay our respects to the traditional custodians of Country and elders past and present.

The government's ban prohibits life insurers from using adverse genetic testing results in underwriting, aiming to remove a potential barrier to Australian's seeking information about their health.

Assistant treasurer and minister for financial services Daniel Mulino said the reforms would allow people to make informed health decisions without fearing the consequences for their insurance access.

"Australians should never have to choose between accessing potentially life-saving genetic information and obtaining life insurance. With this ban now in place, they no longer have to," Mulino said.

The restrictions do not prevent individuals from voluntarily providing genetic test results with written consent, provided those results are used only where they do not disadvantage the insurance offer or policy terms. Insurers can also continue to consider other relevant underwriting information, including existing illness, symptoms and family medical history.

The Australian Securities and Investment Commission (ASIC) will enforce compliance, while suspected breaches can be reported to the regulator. Affected Australians can also seek resolution through AFCA or the Australian Human Rights Commission.

AFCA's updated rules, approved by ASIC and effective from October 8, specifically allow the complaints body to consider cases involving the solicitation or use of adverse genetic testing results in life insurance.

Council of Australian Life Insurers chief executive Christine Cupitt said the industry supported access to health information.

"Australia's life insurers want people to access the information they need to make informed choices about their health and to manage it proactively," Cupitt said.

Monash University DNA Screen co-lead Jane Tiller said the reform followed nearly a decade of work by researchers, patient groups, clinicians and policymakers.

"This reform will provide reassurance to people considering having genetic testing and paves the way for greater investment into preventive genomic screening," Tiller said.

The legislation will be subject to a statutory review every five years.

Australian Ethical chief investment officer Ludovic Theau says the Growth Opportunities Fund targets $25 million to $75 million private markets deals that larger funds tend to overlook, with early investments spanning renewable energy, battery storage and aged care.

For the year ended 30 June 2026, operating revenue increased 9% to $129.5 million, while underlying profit after tax rose 15% to $27.3 million. Net profit attributable to shareholders climbed 29% to $25.7 million, and the underlying cost to income ratio improved as the business continued to scale.

Australian Ethical chief executive John McMurdo said the company had maintained its purpose through changing market conditions and shifting investor priorities.

"This year marks 40 years of Australian Ethical. Across market cycles and shifting public attention, we have shown that long-term returns can be delivered while investing in companies shaping a better future," McMurdo said.

The manager recorder $664 million in positive organic net flows during FY26, up 134% on the previous year, with superannuation contributing $537 million. Compulsory contributions, rollover activity and end of financial year payments supported the result.

Institutional investment was another growth driver, particularly for the Growth Opportunities Fund, which received a $125 million cornerstone commitment from the Clean Energy Finance Corporation and a $500 million seed investment from Australian Ethical Super.

Australian Ethical chief investment officer Ludovic Thear said the private markets strategy delivered a gross return of 21.2% for the 12 months to June 2026, exceeding its long-term target of 11% to 13%.

However, performance across Australian equities was weaker, as interest rate pressures and geopolitical uncertainty weighed on sectors such as technology and healthcare. The company noted major miners and fossil fuel businesses, largely excluded from its investment universe, were among the stronger market performers.

Australian Ethical said its sustainability measures remained a key point of difference. Portfolio financed emissions intensity was 75% below its benchmark when scope 1, 2 and 3 emissions were included, while the manager conducted more than 230 engagements with companies and other organisations on issues including policy, deforestation and biodiversity.

The company also allocated a record $3.4 million to the Australian Ethical Foundation, taking donations since 2017 above $16 million.

Looking ahead, Australian Ethical expects positive inflows in FY27, supported superannuation growth, institutional expansion, product development and the rollout of a new mobile app.

Wanigasekera told Financial Standard IFM's private debt business lends more to renewables and associated infrastructure in North America and Europe than in Australia at the moment.

"This is a very debt perspective, but that is driven by some of the fundamental characteristics of the localised market...we see the risk trade-off as being superior in those markets relative to here, and the way the market functions," Wanigasekera said.

IFM Investors is also looking at more of these investment opportunities in Asia.

"Asia probably drives a much better return outcome for us on a comparative basis. So, it's interesting for us to look at these investments there," he said.

"You get the best of both worlds... you're able to actually have that positive outcome through investing in renewable energy and energy transition, but you're also getting well compensated in terms of return as well.

"The risk-to-return trade-off may be superior in certain markets versus others, and that sort of drives capital, or drives more interest from us in that way."

IFM opened a Singapore office for its credit strategies team just over six months ago, extending the non-bank lending it has done in Australia for nearly 30 years into Asia, with a focus on South and Southeast Asia.

Wanigasekera said early opportunities in the region include digital infrastructure and telecommunications, healthcare, and the energy transition, mainly solar and wind, with some biofuel-driven power generation emerging.

"The process we run in terms of investing is a little bit different in Asia compared to what we do here. There are certain things in a developed market environment that we may tackle at a very late stage through our investment process, that in an [emerging market] environment you've got to actually deal with very early on," Wanigasekera said.

"It's not a change in what we do. It's just the sequencing of when we do things that has had to be changed... paying much more attention to legal risk, jurisdictional risk, enforcement risk as a lender going into [emerging] markets needs to be addressed upfront.

"Whereas in developed markets, there's a broad understanding that there's a set system, it works. We don't need to deal with that as an early step."

Wanigasekera added the biggest roadblock is a lack of understanding of these markets among Australian investors.

"Asia-Pac is a combination of countries that all sort of don't move in concert... you can have very localised situations that may, at a point in time, make a certain country a more difficult investment story. But at the same time, the neighbouring country is on a completely different trend," he said.

"A good example right now is Indonesia, Vietnam and the Philippines... Indonesia, because of some local governance and political issues there, is a slightly more difficult jurisdiction to invest in, while Vietnam has sort of gone through that phase and is now emerging on the other side, and is actually becoming more attractive.

"The Philippines has been moving in a more steady state for an extended period of time and makes investing a slightly easier story."

Wanigasekera will be speaking at the IGCC Summit 2026 on the panel discussing what's driving and blocking Australian investment at scale.

FS Sustainability is a media partner of the IGCC Summit 2026 to be held on the 24-25 November at Ilumina Sydney. To register, click here.

That levels with Europe where 58% of respondents ascertained the importance of climate change to their investment strategies.

This is double the proportion of that seen in the US, where just 27% of respondents said climate remained important for investment policy.

"This year's results show stabilisation here, with 47% overall saying that climate change is at the center of, or a significant factor in, their investment policy. And the regional difference persists," the report read.

Robeco climate and biodiversity strategist Lucian Peppelenbos said: "Our 2026 study illustrates what we call the new reality of climate investing. While investors remain committed to their net-zero goals, there is a growing realism that the transition is driven by hard economics and hard geopolitics."

"The drive for energy security is benefiting investments in areas such as renewables, battery storage and grids. The new climate reality is also a realisation that physical risks are here now, not in a distant future. We believe this will increasingly drive investor sentiment in the next few years."

The study found investors getting to grips with the trade-offs involved in decarbonising portfolios: investment performance is still the biggest challenge overall (50%), but it has fallen sharply from 2025 (67%).

Data quality has also reduced as a challenge, although balancing targets with impact (41%) and dealing with complex asset classes (37%) remain high up on the agenda.

Peppelenbos said: "Climate investing is becoming more sophisticated with more forward-looking data rather than carbon emissions only, and more integrated with financial performance. As investment engineers, we continue to innovate with data and research so that we can support our clients."

ACF's latest report identified 82 cases of deforestation linked to major Australian banks during the last financial year, with 99% of the affected land associated with agriculture.

NAB had the largest exposure identified, linked to 5813 hectares across 25 cases, followed by Commonwealth Bank (CBA) with 3105 hectares and ANZ with 2449 hectares. Westpac, Rabobank and Bendigo Bank were also identified.

The analysis found 94% of cases occurred in New South Wales or Queensland, with clearing affecting habitats for threatened species including koalas, greater gliders and glossy black cockatoos.

ACF estimated the clearing generated more than 11 million tonnes of carbon dioxide-equivalent emissions, which it said were largely absent from banks' climate reporting.

ACF policy analyst corporate responsibility Max Hamra said deforestation presented risk beyond biodiversity, particularly for agriculture.

"Deforestation poses significant risks to Australia's economy, especially agribusinesses," Hamra said.

"Farmers are on the frontline of extreme weather and the damage to soil health and the water cycle that occurs when forests are bulldozed."

ACF said 32 of the 82 cases had been reported to authorities over potential breaches of federal or state laws.

The findings come as banks face increasing pressure from shareholders over nature related risks. CBA shareholders will vote on October 14 on a resolution calling for disclosure of steps the bank will take to become deforestation-free.

ANZ also faces new shareholder resolutions after investors backed a resolution last year calling for greater disclosure of its exposure to deforestation.

Hamra said banks had an opportunity to play a greater role in preventing environmental damage through lending decisions and ongoing monitoring.

"Banks have a significant role to play in ending deforestation in Australia," Hamra said.

ACF said to address the issue could exposure banks to risks affected agricultural productivity, borrowers and the value of assets underpinning lending portfolios.

The ASA Equal Living Social Infrastructure Fund is raising $50 million of initial equity, and ASA Real Estate Partners together with Equal Living Group will co-invest up to 10% of the equity in it.

The assets provide 'step down' healthcare accommodation for Australians with life-changing injuries - those who cannot live long term in hospital but equally need care such that they can't live at home.

The initial portfolio will comprise three newly completed assets in metropolitan Melbourne, 100% leased to the Equal Living Group on 20-year triple net leases indexed to annual inflation.

The assets are operated by Equal Living Group and are designed for long term government funding programs including the National Disability Insurance Scheme (NDIS).

ASA Real Estate Partners managing partner Tim Slattery said: "We really like alternate real asset sectors where the fundamentals of underlying occupier demand and clean cash flow are key value drivers."

The fund is targeting a distribution yield of 7% per annum and an 18% total return across the real estate as well as the equity participation in the Equal Living Group.

ASA said people being cared for include members of community who have suffered strokes, acquired brain injuries, motor neurone disease, multiple sclerosis and major physical trauma including quadriplegia and paraplegia.

Industry estimates indicate a significant shortage of high-quality accommodation with a further 10,000 beds required by 2033.

"Here we see the potential for the asset class which is emerging and not yet supported or priced by institutional capital - we see a distinct parallel to healthcare real estate coming out of the global financial crisis in 2010 which was a very profitable investment. Great assets, profitable tenants and priced without significant competitive tension," Slattery said.

"The structure of the investment gives us ownership of the hard assets as well as upside equity participation of up to 30% in our partner and tenant, an established business with over 150 staff, a proven and profitable operational track record and over 25 years of relevant experience."

ASA said private sector delivery of these assets and services is highly cost effective compared to relevant alternatives. The private sector can build and run this accommodation at up to 70% less than the equivalent nightly cost to government of an acute hospital bed, it added.

"The NDIS, at its core, was designed to provide critical support and essential accommodation for vulnerable members of the community," Slattery said.

"These assets do that in a very cost-effective manner for the government - as evidenced by the fact that only about 1% of the annual NDIS budget is utilised to care for these people who need lifelong support."

The funding will be directed to the 400-megawatt (MW)/1600 megawatt-hour (MWh) Teebar Battery Energy Storage System (BESS) in Queensland and the 470MW Parron Maam Marang Wind Farm in Western Australia.

The investment will be managed by Igneo Infrastructure Partners, as equity funding for both projects will be provided by existing Igneo managed funds and clients - including Cbus and MLC.

The Teebar BESS will provide four hours of energy storage and will store electricity when supply is abundant and dispatch it when demand is higher, helping to support reliability and make more effective use of renewable generation, while the Parron Maam Marang wind farm will supply renewable electricity under a long-term power purchase agreement with Synergy, a WA electricity retailer.

Atmos will retain ownership of Teebar BESS and Parron Maam Marang through construction and operate both projects once complete. They are the next phase of a national portfolio that already includes over 1.5GW of operating and in-construction wind, solar and storage capacity, Atmos said.

Both projects are supported by the government's Capacity Investment Scheme (CIS), and together with the 100MW/400MWh Merredin BESS - which reached the same milestone in June 2025 - Atmos has now taken 970MW of CIS-backed capacity through financial close.

Atmos Renewables chief executive Nigel Baker said the financial close demonstrated Atmos' ability to progress major renewable energy and storage projects from development through to construction and ultimately operations.

"The CIS provides important long-term revenue support, but an award is only one step. Projects still need to secure financing, grid access, wider commercial arrangements and a credible delivery pathway," Baker said.

"Teebar BESS and Parron Maam Marang Farm meet market needs for the firming and generation capacity required in Australia as electricity demand grows and ageing generation retires.

"Reaching this point has required sustained collaboration across state and federal governments, lenders, network businesses, commercial partners and delivery partners."

Igneo Infrastructure Partners partner and head of Australia and New Zealand Danny Latham added the almost 1GW of CIS-backed capacity highlights the attractiveness of the opportunity ahead.

"These major milestones demonstrate Atmos' ability to develop, finance and deliver large-scale renewable energy infrastructure that supports Australia's energy transition while generating long-term value for our investors," Latham said.

"Supported by the long-term commitment of Igneo investors including MLC and Cbus, we continue to see significant opportunity to invest in renewable generation and storage capacity."

❓ Question:

How can remanufacturing single-use medical devices help reduce healthcare waste, improve supply chain resilience and lower emissions without compromising patient safety?

✅ Answer:

According to Daniel Vukelich, president of the Association of Medical Device Reprocessors (AMDR), healthcare's reliance on single-use medical devices has created significant waste, emissions and supply chain vulnerabilities. While many devices are labelled for single use, remanufacturing companies can clean, validate, test and sterilise eligible products so they can be safely used again.

Vukelich argues that remanufacturing offers a practical circular economy solution that reduces costs, cuts healthcare emissions, improves supply chain resilience and recovers valuable materials that would otherwise be discarded. With healthcare accounting for around 5% of global emissions and increasing pressure on global supply chains following COVID-19 and geopolitical disruptions, he believes circular healthcare models will become increasingly important for hospitals, policymakers and investors.

🌟 Healthcare is a major contributor to global emissions

If healthcare were a country, it would rank among the world's largest emitters. Healthcare-related activities account for approximately 5% of global emissions, making decarbonisation a growing priority for the sector.

🌟 Circular healthcare can reduce dependence on fragile supply chains

COVID-19 exposed vulnerabilities in global medical supply chains. Remanufacturing enables hospitals to extend the life of existing devices and reduces dependence on imported products and raw materials.

🌟 Valuable materials can be recovered and reused

Many medical devices contain microchips, rare earth metals, gold and other valuable materials. Remanufacturing helps recover these resources rather than sending them to landfill or incineration.

🌟 Hospitals can significantly reduce procurement costs

The remanufacturing industry has delivered substantial savings to healthcare systems by allowing eligible devices to be safely reused rather than constantly replaced with new products.

🌟 Emissions can be reduced by remanufacturing devices closer to home

Lifecycle assessments suggest remanufacturing can reduce emissions by around 44% compared with manufacturing entirely new devices because fewer raw materials need to be extracted, processed and transported.

🌟 Scope 3 emissions present a major opportunity

Around 70% of hospital emissions originate from supply chains rather than hospital operations. Addressing procurement and medical device lifecycles could have a larger impact than operational changes alone.

🌟 Australia is moving closer to developing a remanufacturing sector

Several companies have announced plans to invest in Australian remanufacturing capability, while regulators continue to assess the appropriate framework for medical device reuse and remanufacturing.

🌟 Circular business models could become a competitive advantage

Vukelich believes medical technology companies that extend product lifecycles and offer circular solutions are likely to be better positioned as healthcare systems focus more on sustainability and resilience.

🚩 Regulatory frameworks are still evolving

Australia is still developing the regulatory settings required to support a larger remanufacturing industry while maintaining patient safety and clinical confidence.

🚩 Existing healthcare procurement models favour single-use products

Many purchasing decisions remain focused on upfront unit costs rather than whole-of-life costs, supply chain security and environmental impacts.

🚩 Established business models may resist change

Manufacturers that rely on selling new devices may be reluctant to adopt circular approaches that extend product lifespans and reduce replacement rates.

🚩 Clinical participation is critical

Remanufacturing programs depend on hospitals consistently collecting and separating eligible devices for reuse. Without clinician engagement, significant benefits can be lost.

⚠️ Healthcare's environmental footprint is larger than many realise

Despite healthcare's mission to improve health outcomes, the sector remains a significant source of waste and carbon emissions.

⚠️ Supply chain disruptions are becoming a strategic risk

Pandemics, trade tensions, tariffs and geopolitical conflicts continue to create uncertainty in healthcare supply chains, increasing costs and reducing resilience.

⚠️ Sustainability alone will not drive change

Vukelich argues that adoption must be supported by strong business and financial cases, not environmental benefits alone.

⚠️ Procurement practices may determine the pace of adoption

Unless healthcare buyers actively reward sustainable and circular solutions, progress towards circular healthcare models may remain slow.

💡 Why it matters:

Healthcare is increasingly being viewed through both a sustainability and supply chain lens. As hospitals seek to reduce costs, improve resilience and cut emissions, circular approaches such as medical device remanufacturing are attracting greater attention globally. For investors, healthcare providers and policymakers, the transition from a linear "take-make-waste" model to a circular healthcare system could create new commercial opportunities while helping address waste, carbon emissions and resource constraints.

🎙️ Sources:

Daniel Vukelich, president, Association of Medical Device Reprocessors (AMDR)

Michelle Baltazar, host, The Greener Way

⏱️ Timestamps:

00:00 - Why healthcare emissions matter

01:25 - What circular healthcare means

01:49 - The rise of single-use medical devices

02:35 - What remanufacturing and reprocessing involve

03:34 - Common misconceptions about reuse and recycling

04:15 - How COVID changed the conversation

05:00 - Types of devices that can be remanufactured

06:12 - Cost savings and supply chain resilience

07:33 - Australia's emerging remanufacturing opportunity

08:40 - The emissions benefits of remanufacturing

09:37 - Healthcare's carbon footprint and Scope 3 emissions

10:26 - Barriers and industry resistance

11:49 - Regulation, procurement and policy priorities

12:49 - The future of circular healthcare

13:36 - Potential benefits for developing countries

14:09 - Sustainability, business and healthcare waste reduction

🌿 We record on Gadigal Land and pay our respects to the traditional custodians of Country and elders past and present.

This is indicative of a maturing sector that has evolved from a standalone product to a strategy that is increasingly integrated into mainstream investment processes.

Rainmaker Information data shows that 28 environmental, social and governance (ESG) funds launched over the past five years, while 16 were shuttered.

Perennial Partners recently closed three responsible investment funds - the Perennial Better Future Trust, Perennial Better Future Active ETF and Melior Australian Impact Fund - with about $140 million in collective funds under management (see pg. 21).

"We're a house of multi-boutiques, and the level of integration of ESG across those individual boutiques and embedded into their investment processes really has come a long way compared to, say, 10 years ago when it was something that was on the side," Perennial Partners head of distribution Cesar Farfan says.

The decision to terminate the funds was a matter of scale and commercial viability, he explains, "irrespective of whether they were ESG or not."

Ian Woods Advisors founder Ian Woods notes there has been consolidation in ESG funds management as a result of competition in the space.

"It has been challenging for many of those standalone funds with regard to performance over the last couple of years," Woods says.

"The exposure that typical funds might have, or the lack of exposure, has now led to some underperformance over the last couple
of years."

While absolute performance was acceptable, Farfan says several factors have detracted ESG funds. On top of ESG headwinds, he adds that the lack of exposure to certain sectors, such as resources, have led to ESG strategies lagging and underperforming.

The 40 largest ESG funds shed $910 million over the three years to June 2026, Rainmaker estimates, though flows have stabilised in the last year, with $506 million flowing in.

Passive funds, however, are seeing the highest inflows. Vanguard's International Shares Select Exclusions Index Fund saw $606 million in inflows in the last year.

Russell Investments' Low Carbon Global Shares Fund recorded $529 million in inflows, while the SPDR S&P/ASX 200 ESG ETF took in $317 million.

While index funds take the top spots, active funds remain more fragmented. Some managers capture consistent market share, while others secure consistent fund flows. Others struggle with outflows.

For example, Munro's climate change fund secured $112 million in net inflows over three years, accelerated by an $80 million surge in the last 12 months.

Conversely, over the same periods, Pendal's sustainable fund bled $103 million, although it has stabilised with $34 million in inflows.

"Across active funds management, you're seeing lots of closures. ESG is just one subset. If you look at the flows, say, over the last 12 months across the funds management space, [it] is largely dominated by money going to low-cost passive ETFs, and then in the active space, you've got winners and losers," Farfan says.

"It's a general challenge for active managers. Full stop. If you then put the lens on ESG, I think that's got its own specific set of challenges."

Farfan, however, doesn't expect a return to how things were. He likens ESG to electric windows in cars: what was once an optional extra that a dealer would recommend is now a standard feature. Funds work the same way, he says, whether it's E, S or G, it is now part of the investment process.

He notes that investors still gain exposure to sustainable themes such as the energy transition and decarbonisation via Perennial's resources-focused funds.

"Our resources fund is not investing in things like coal production or iron ore. It's investing in resources that will contribute and help the whole decarbonisation and energy transition," Farfan says, adding this effectively applies an ESG lens on the fund.

Taking the longer view, Woods still sees growth in both ESG integration and standalone funds.

The past couple of years have been challenging in the US and Europe, he says, but the good news is that both markets have seen a turnaround in inflows over the last six months. fs

Following an internal review, Nest is moving its emerging markets equity allocation to an active, fundamental, discretionary approach, in a bid to invest more selectively in companies with strong growth prospects.

"This enables more selective investment in companies with robust ESG practices and strong growth potential. The move reinforces and supports Nest's commitment to delivering strong, risk-adjusted returns for members over the long-term," Nest said.

The new strategy will leverage Wellington's proprietary fundamental research across countries, sectors and companies in emerging markets.

Nest Invest director of public and private markets Rachel Farrell said the pension fund continues to evolve its investment approach in ways it believes will drive benefit for members over the long term.

"With more than 80% of assets held in segregated accounts, including this emerging markets mandate with Wellington, Nest has developed one of the most extensive segregated mandate programmes in the UK defined contribution (DC) market," Farrell said.

"This gives us greater control over how mandates are implemented and greater confidence in managing governance, sustainability, climate and market-specific risks."

Wellington Management head of EMEA Aisling Freiheit said the investment manager is delighted to partner with Nest on this important mandate.

"The most enduring relationships between asset owners and investment managers are built on trust, alignment and shared purpose," Freiheit said.

"We look forward to working closely with Nest over the years ahead, bringing the full breadth of Wellington's global platform to support its long-term ambitions and create lasting value for its members."

Engagement is an integral part of Wellington's fundamental research, and it believes active engagement with companies allows it to uncover both risks and opportunities within emerging markets.

"We're excited to partner with Wellington, which puts engagement to the centre of its investment philosophy. Its focus on high-quality companies with strong governance in emerging markets shows a clear, strong alignment with Nest's long-term investment goals and beliefs," Farrell said.

A further 15% of asset owners are currently evaluating whether to do so.

Even as sustainability becomes more mainstream, the survey found indications that more public strategies, such as engagement, are declining, with the percentage of asset owners saying they are engaging on key themes all falling by five to10 percentage points.

FTSE Russell Ninth Annual Sustainable Investment Asset Owner Survey 2026 received response from 402 asset owners from 24 countries, in three regions: Asia Pacific (30%), EMEA (40%) and North America (30%).

"Sustainable investment practice is quietly becoming an integrated, mainstream feature of asset owners' day-to-day work of balancing risk and return," FTSE Russell global head of sustainable Stephanie Maier said.

"Investors increasingly understand that sustainability factors can influence investment performance, and therefore need to be tracked, understood and taken into consideration."

However, Maier added, this conclusion must be tentative.

"At the time of writing this report, we are not yet seeing significant upticks in capital flowing back into labelled sustainable investment funds. Continuing sensitivity around many aspects of ESG and climate policy mean that many asset owners remain much less vocal on these issues than they were in previous years," she said.

The survey also found asset owners are integrating sustainability factors more widely throughout their portfolios - and they expect that trend to continue. The percentage that reported applying sustainability considerations to more than 50% of their assets rose from 26% last year to 51% in 2026.

Listed equity remains the asset class where implementation by asset owners is most advanced. The survey also saw a significant jump in sustainable investing in private equity, reflecting the movement of sustainable investing practices from public to private markets.

The financial close marks the projects move from development construction, with Foresight also acquiring Shell Energy's 50% interest in Kondinin Energy to take full ownership of broader project through its Australian Renewables Income Fund.

The financing was providing ANZ, Commonwealth Bank of Australia, Deutsche Bank, HSBC and Westpac.

Stage 1 is supported by a seven-year power purchase agreement with Synergy covering all renewable electricity generated by the project, alongside a 15-year revenue support agreement under the Australian Government Capacity Investment Scheme.

Foresight Australian renewables Income Fund portfolio manager Daniel Beaver said the financial close reflected significant progress across the project.

"With financing secured, long-term revenue support through the Synergy PPA and Capacity Investment Scheme, and the backing of the Western Australian Government through Kondinin's Priority Project designation, Stage 1 is now ready to move into construction," Beaver said.

Construction will be led by Foresight's Australian infrastructure team, with Vestas contracted to deliver 21 Vestas V162-6.2 MW turbines.

The project has also been designated a Priority Project under the Western Australian government's State Development Act 2025, providing coordinated government support for approvals and delivery.

Construction of Stage 1 is expected to support 145 direct jobs, with renewable electricity generation scheduled to begin from late 2028.

Once operational, the wind farm is expected to generate enough electricity to supply 70,000 Western Australian homes.

The project also includes a community benefit fund, providing a $150,000 annually, indexed to inflation, for local projects for more than 25 years from the start of construction.

"Kondinin is a long-term investment in the region as well as in Western Australia's energy system," Beaver said.

Foresight said it would mow focus on delivering Stage 1 while progressing potential subsequent stages of the broader 370MW development.

The government's Australian Renewable Energy Agency (ARENA) has backed commercialisation of Sicona under the Future Made in Australia agenda.

ARENA will provide up to $45 million to support the firm for manufacturing its advanced silicon-carbon battery anode material SiCx. The batteries aim to increase charging speeds up to 40% and battery density by 20% faster than conventional batteries, while remaining compatible with existing production lines.

"Australia has the foundations in place, with ARENA backing our first commercial plant and a government openly talking about a higher risk appetite and faster decisions, which is exactly what this industry needs," Sicona Battery Technologies chief executive Christiaan Jordaan said.

"Every company in this category reaches the same point, where grants and venture capital carry you to pilot scale and construction finance has to come from somewhere, and the countries moving quickest on that step are the ones building the plants.

"We have the technology, we have been through ARENA's diligence, and we have the site at Port Kembla, so Australia is closer to a working silicon-carbon anode plant than most people realise. The opportunity in front of us is to move at the same speed the UK and the US are moving, and to back the projects that are ready to build now."

Sicona said Australia holds the lithium, the technology, and a site that has already passed ARENA's diligence, which puts the country in a position to build the plant onshore if construction funding moves quickly enough.

NOAB Ventures director John Wood said: "The pattern Sicona is describing shows up right across the portfolio I invest in, where seed and venture money takes a company to the point of building something and construction finance becomes the hard part.

"Australia has built genuine strength in inventing this technology, and the opportunity now is to back it through to manufacturing rather than watching another country fund the factory. Sicona has done the hard part already, and projects at that stage are exactly where faster decisions and a higher risk appetite pay off."