About sustainable finance

What is sustainable finance?

Sustainable finance is the integration of sustainability considerations into economic and financial decision making, to mitigate risks and realise opportunities for the lasting benefit of society. 

These sustainability factors are often referred to as environmental, social and governance (ESG) considerations, and are intended to promote:

• sustainable economic growth
• long-term stability of the financial system.

The government’s role in sustainable finance

The NSW Government plays a unique role in progressing sustainable finance. We deliver on sustainable finance priorities through 3 primary roles:

• As an enabler, we attract capital towards sustainable outcomes by using available policy.
• As a participant, when investing, spending, and raising debt, we integrate environmental and social considerations into our financial decision making.
• As an authority, we establish the tools and metrics to ensure a culture of continual improvement.

We’re delivering on these priorities through initiatives such as the  Climate Change (Net Zero Future) Act 2023, which legislates emissions reduction targets in NSW and establishes an independent Net Zero Commission, the  Independent Review of the NSW Biodiversity Conservation Act and our Sustainability Bond Programme.