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The Australian Council of Superannuation Investors (ACSI), Australian Sustainable Finance Institute (ASFI), and Responsible Investment Association Australasia(RIAA) made a joint submission to the Australian Competition and Consumer Commission (ACCC) to strongly support the ACCC’s exploration of possible new class exemptions that can unlock beneficial collaboration between businesses while maintaining competitive safeguards.
In particular, the three organisations recommend that the ACCC consider how it could introduce a class exemption for sustainability-related collaborative conduct, considering international examples. Such an exemption would provide clear, consistent legal certainty to better enable efficient, low-risk cooperation in support of sustainability outcomes that deliver long-term productivity and resilience benefits for Australia.
We welcome the ACCC’s initiative in exploring new class exemptions as part of the Government’s productivity agenda. A sustainability class exemption would:
- enhance regulatory certainty;
- unlock beneficial collaboration across industries; and
- accelerate Australia’s transition to a sustainable, resilient, and competitive economy.
Sustainability-related collaboration is essential for achieving Australia’s climate goals
Australia’s transition to a sustainable, low-emissions and climate-resilient economy will require coordinated action across industries and sectors. Many of the actions necessary to achieve these goals — from developing low-carbon supply chains to setting shared sustainability standards and methodologies — inherently involve collaboration between competitors.
Sustainability collaboration is directly linked to long-term productivity and risk management. For example, joint initiatives can accelerate the development of new markets (e.g., sustainable aviation fuel, circular economy materials, green finance). Common methodologies reduce duplication, lower compliance costs, and enhance data comparability.
The ACCC has made it clear that there are a wide range of sustainability collaborations that do not breach competition laws. However, feedback from the market and engagement with listed companies indicates that uncertainty about the application of the law can discourage or delay such collaboration, even where it clearly delivers public benefits.
Rationale for a Class Exemption
To encourage sustainability-related collaboration in support of Australia’s sustainability goals, and to reduce compliance burden for market participants, we recommend that the ACCC consider how it could introduce a class exemption for sustainability-related collaborative conduct. This would enable the ACCC to provide businesses with a transparent and efficient mechanism for supporting productivity and innovation while maintaining competitive safeguards.
The exemption could authorise collaboration and arrangements between competitors that pursue a genuine sustainability objective. It should include clear conditions which seek to maintain competition while also supporting collaboration to achieve sustainability outcomes. The exemption should also provide clear guidance and illustrative case studies to support businesses to self-assess whether their planned activity would be covered by the exemption. This approach would be consistent with the EU’s ‘safe harbour’ arrangements for certain sustainability-related conduct; and the UK’s exemption for certain sustainability-related collaborations.
A similar framework would provide Australian businesses with comparable clarity, supporting competitiveness with international jurisdictions, and removing an important barrier to achieving Australia’s climate goals, including the Government’s 2035 Nationally Determined Contribution and Net Zero Plan.
A well-crafted class exemption would:
- reduce legal uncertainty and compliance costs, while maintaining consumer protection;
- promote efficient collective problem-solving and innovation;
- support alignment with Australia’s climate, nature, and sustainable finance policies; and
- ensure Australian businesses remain competitive with global peers operating under similar frameworks.
We recommend that the ACCC also consider whether additional measures may be necessary or valuable to provide greater confidence to market participants, including by looking at international examples such as those in the UK and the EU.
‘Download submission’ for full the submission to the ACCC.
