Senior executives from insurance companies, banks and other organisations have joined a new sustainable finance group to plan for climate change risks and other social and environmental issues.

The Australian Sustainable Finance Initiative will be guided by a steering committee charged with making recommendations in 2020.

The initiative is co-chaired by retiring IAG Group Executive People, Performance and Reputation Jacki Johnson and Responsible Investment Association Australasia CEO Simon O’Connor.

Other insurance members are QBE Australia Pacific Chairman Mark Joiner and Swiss Re MD and Head Australia and New Zealand Mark Senkevics.

The Australian group follows the model of the EU High-Level Expert Group on Sustainable Finance and the UK Green Finance Taskforce.

Ms Johnson says Australia is entering a critical decade for managing climate change and other risks to ensure a resilient economy.

“Australia has made a number of commitments to international targets,” she said. “Achieving these goals extends beyond social or environmental objectives – it’s an economic and financial necessity.

“Our economy simply cannot prosper in an environment of ever-increasing severe weather events and the subsequent broader impacts these will have.”

The group also includes Business Council for Sustainable Development Australia Chairman John Hewson and representatives from ANZ, NAB, Westpac and Commonwealth Bank.

Geoff Summerhayes, a senior member of the Australian Prudential Regulation Authority and International Association of Insurance Supervisors, is an observer, as is UN Environment Program Finance Initiative Head Eric Usher.