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Expect nature to play an increasing role in the way businesses design, implement and execute their sustainability strategies in 2025 – and how they look to fund their operations in a sustainable way.
There's an increasing recognition from both borrowers and investors on markets that nature and climate are intimately linked – and sustainability strategies need to address both.
The idea gained traction in 2024 and we expect will continue to do so. In September, the United Nations Environment Programme Finance Initiative (UNEP-FI) released a report into a proposed working model for nature-positive finance.
That came a month after a report from the UNEP-FI outlining steps the G20 could take to help move the world towards a nature-positive economy.
At ANZ, we see nature as something to consider now, not later. We're certainly seeing investors looking for opportunities in nature and we're seeing borrowers drawing up nature action plans.
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The geopolitical environment will continue to be front of mind for participants in the sustainable finance space in 2025, given the role policy plays in the transition to a low-carbon economy.
At ANZ, our expectation is borrower and investor confidence in the broader needs for the transition and repairing nature will continue.
The year 2025 looms as another exciting one for businesses, with persistent inflation and geopolitical change creating a landscape of uncertainty and opportunity in the Asia-Pacific region.
The increasing speed of digitisation, dawn of the real-time economy, and shifting supply chains will all also have a role to play in shaping the macroeconomic environment.
At ANZ Institutional, we know business are looking to position themselves to take advantage of these trends.
As part of our Outlook 2025 series, we’re asking our subject-matter experts to provide insights into a range of complex areas from across close to 30 markets – helping you better understand how you can prepare for the New Year. We’ll be sharing the responses over the coming weeks.
There will be further evolution on the regulation and policy front in the new year. There’s been an increasing flow into the market of taxonomies and regulation in the space around the world, driving greater definition and certainty for both borrowers and investors.
It’s clear taxonomy and mandatory disclosure regimes can certainly be a positive tool, and help build confidence in the sustainable finance sector through 2025 and beyond.
Katharine Tapley is Global Head of Sustainable Finance at ANZ Institutional
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