A “roadmap” developed by the Australian Sustainable Finance Initiative (ASFI) has called on members to facilitate a transition to net-zero emissions by 2050 and to take steps to boost resilience.

Institute members should collaborate through ASFI to establish interim science-based targets as they look to make “net-zero-aligned” decisions on lending, insurance and investment, the roadmap released last week says.

A regular report is also recommended to examine whether markets are functioning efficiently to support delivery of the 2050 target.

The ASFI Roadmap reflects the contribution of more than 140 participants from at least 80 organisations. Insurers represented on the steering committee include IAG, QBE and Swiss Re.

IAG CEO Nick Hawkins says the plan provides practical recommendations to help guide financial institutions.

“It is imperative that the Australian finance sector, government and communities continue to work together to find solutions that ensure a prosperous economy while also delivering a sustainable future for our communities and environment,” he said.

The roadmap’s 37 recommendations include a 2023 deadline on an “if-not, why not?” basis for listed companies to report in line with the international Task Force on Climate-related Financial Disclosures proposals.

The report says climate change financial risk vulnerability assessments being undertaken by the Australian Prudential Regulation Authority (APRA) should be expanded to include small and medium financial institutions as well as the superannuation and insurance sectors.

APRA has previously said it will begin with the largest banks, with other industries to follow.

The roadmap backs updating the National Construction Code to improve residential building resilience and proposes a First Peoples Financial Services Office that would encourage access to suitable insurance products and disclosure processes.

Swiss Re regional property and casualty head Mark 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 said.

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