ASEAN taxonomy for sustainable finance series
The ASEAN Taxonomy for Sustainable Finance is a benchmark series that provides a common framework to classify sustainable economic activities across ASEAN. It guides financial institutions, policymakers and market participants in assessing environmental objectives, supporting an orderly transition and alignment with regional and international sustainable finance standards.
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OVERVIEW
Overview
The ASEAN Taxonomy for Sustainable Finance is a benchmark series initiated in 2021 to provide a common classification framework for sustainable economic activities across ASEAN. It supports alignment with regional priorities and international taxonomies, creating a consistent reference point for sustainable finance.
Purpose
The series aims to guide capital allocation towards activities that contribute to defined environmental objectives while enabling an orderly and inclusive transition. It establishes a shared language for policymakers, financial institutions and market participants, supporting coherence across diverse economic contexts.
Methodology
The framework uses a multi-tiered approach combining a principles-based Foundation Framework and a criteria-based Plus Standard. Activities are assessed against environmental objectives and must meet essential criteria, including avoiding significant harm, applying remedial measures where required, and addressing social considerations.
Use for finance professionals
Finance professionals can use this benchmark to classify economic activities, assess portfolios and financial instruments, and support sustainable finance product development. It also enables alignment with regional standards and improves comparability with other taxonomies when evaluating sustainability and transition pathways.
