Product labelling: the catalytic link between real-economy action and sustainable finance

The recently delivered ASFI (Australian Sustainable Finance Institute) Action Plan raises the bar for product transparency. It marks a pivotal moment in aligning Australia's financial sector with global sustainability objectives.

The financial industry will be intensifying its focus on environmental, social, and governance (ESG) considerations, which for manufacturers means that the demand for transparent, verifiable, and science-based product information will be expected.

The ASFI 2025-27 Action Plan calls for 26 priority actions across eight domains that will "embed sustainability in the foundations of the financial system".

Global GreenTag International recognizes this as a pivotal moment to accelerate capital flows toward solutions that reduce emissions, enhance climate resilience, and restore nature—objectives that align closely with our mission.

The ASFI Action Plan emphasizes sustainable finance policy and regulation (Action Area 1), alignment of regulatory settings with sustainability (Action Area 2), and transparent data and reporting (Action Area 4). Key recommendations include expanding mandatory climate-related disclosures, introducing sustainable financial product labelling, and aligning corporate governance with sustainability objectives. These measures resonate with Global GreenTag's commitment to providing credible, third-party-verified product certifications that bridge the gap between manufacturers, consumers, and investors.

Why credible labels matter to investors and lenders?

Global GreenTag International recognises that credible, third-party product eco-labelling and certifications are foundational to sustainable finance. David Baggs, CEO, Technical Director and Cofounder of Global GreenTag International, states:

"If financiers cannot easily verify the environmental and social credentials of the products that underpin a project, they either add a risk premium—or walk away. Credible labelling closes that information gap and unlocks the cost of capital."

"Manufacturers with product ranges already certified have considerable advantage, as certification bridges the gap between manufacturers, consumers, and investors, ensuring that sustainability claims are not only transparent but also substantiated."

Dr Nana Bortsie-Aryee, Program Director of Global GreenTag International adds"

"We welcome the ASFI Action Plan and are eager to collaborate to operationalize its priorities. Our Life-Cycle Analysis (LCA) and digital product passports deliver decision-useful data, aligning with ASFI's focus on digitized sustainability reporting (Action Area 4, Priority 4.2) and enabling financial institutions to direct capital toward genuine sustainability leaders."

GreenTag labels he points out, translates complex life-cycle data into decision-ready signals that procurement teams, asset managers and insurers can trust. GreenTag has the information and infrastructure to help:

1. De-risk disclosure – by providing third-party-verified Scope 3, embodied-carbon and health data that dovetail with the climate-disclosure framework the Action Plan seeks to expand.

2. Enable taxonomy alignment – because activity-based performance metrics in labels can be mapped directly to the forthcoming Australian Sustainable Finance Taxonomy

3. Build market confidence – through harmonised language that satisfies the Action Plan's call for "clearer rules" around sustainability claims.

Key programs developed under the various GreenTag Product Certification Standards can be mapped already to deliver to ASFI's domains and priorities:

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Recommendations from GreenTag to support ASFI's next phase

Global GreenTag proposes three concrete contributions to help ASFI realise its Action Plan:

1. Data-integration pilot

Connect GreenTag's Product Passport API to the Australian Sustainable Finance Taxonomy sandbox, giving banks and super funds live access to verified product metrics for eligibility screening.

2. Label rulebook collaboration

Co-draft, with ASFI and Treasury, sector-agnostic criteria for "sustainability product labelling" —leveraging GreenTag's 15-year track record of ISO-certified conformity assessment.

3. Capacity-building for financiers

Deliver a Sustainable Products Masterclass series for risk, procurement and investment teams—covering LCA fundamentals, interpreting EPDs, and using nature-positive metrics in deal structuring.

Global GreenTag applauds the ASFI Action Plan for placing product transparency at the core of Australia's sustainable finance architecture. Our certification programs are uniquely positioned to operationalize the Plan's priorities, from taxonomy alignment to digitized reporting and capability building. We are committed to supporting ASFI in accelerating capital flows into products and projects that safeguard climate, nature, and people, contributing to a more sustainable, resilient, and inclusive Australia.