The Australian Sustainable Finance Initiative, including insurers, banks and super funds, has released a Roadmap that includes support for a net-zero emissions target, as experiences this year highlight the need to better prepare for future risks and shocks.

The finance initiative is co-chaired by Jacki Johnson, who represents IAG, while other insurer members on the steering committee are QBE Australia Pacific Chairman Mark Joiner and Swiss Re regional property and casualty head Mark Senkevics.

“There is an urgent imperative for Australia’s financial services sector to act to remain globally competitive in a world increasingly prioritising a sustainable economy,” Ms Johnson says.

“We are seeking to re-orient capital - where capital is lent, what it insures and where it is invested - to supporting and building value today while strengthening the economic, natural and social assets that underpin our long-term prosperity.”

The Roadmap makes 37 recommendations which are focused on leadership, integrating sustainability into practice, enabling resilience for the community and markets measures.

The report calls for participants to support the transition of the economy to net zero emissions by 2050, consistent with international conventions such as the Paris Agreement.

A 2023 deadline is proposed for certain companies to report according to recommendations from the international Task Force on Climate-related Financial Disclosures.

The Roadmap recommends financial institutions work with regulators on sustainability measures and standards and suggests members promote climate risk mitigation efforts.

The report backs updating the National Construction Code so residential properties are built to be resilient to climate and geological risks and proposes establishing a First Peoples Financial Services Office that would encourage access to suitable insurance products and disclosure processes.

Mr Senkevics says the bushfire and pandemic experiences this year have provided a reminder on why it’s necessary to focus on resilience.

“Insurance plays a crucial role in this, it frees up capital, mitigates against financial loss, provides long-term financial stability and can be a substitute for government programs,” he says.

“This Roadmap could not come at a more pertinent time in shaping a sustainable future for Australia.”

The Australian Sustainable Finance Initiative, brought together over the past couple of years, says the Roadmap reflects the contribution of more than 140 participants from at least 80 organisations.