The Australian Sustainable Finance Institute (ASFI) has appointed Insurance Australia Group (IAG) chief financial officer William McDonnell (pictured) as chair of its board, effective March 16, 2026. McDonnell succeeds Cbus Super chief executive officer Kristian Fok, who has chaired ASFI since its establishment in 2021.
ASFI said Fok will step down after more than four years in the role, during which the organisation expanded its membership and launched programs across climate, nature, and social finance.
Chief executive officer Kristy Graham said McDonnell’s background spans insurance, banking, and regulatory engagement. “William brings extensive experience in financial services including insurance, banking, and regulation, as well as an international perspective on the role finance plays in supporting the transition to a resilient and sustainable economy. Australia is placing greater emphasis on climate adaptation and resilience, and William’s background in the insurance sector will strengthen ASFI’s work, as we continue to advance cross-sector responses to climate risk and build long-term resilience,” Graham said.
McDonnell’s appointment brings a senior general insurance executive into a central governance role within Australia’s sustainable finance architecture. Before joining IAG, McDonnell held a series of climate and risk-related positions in the UK and internationally. He was a founding member of the Bank of England’s Climate Financial Risk Forum, chair of Royal & Sun Alliance’s ESG committee, a member of the University of Cambridge ClimateWise Council, and chair of the CRO Forum’s Emerging Risk Initiative. He also established and led the Integrity Council for the Voluntary Carbon Market.
McDonnell said he views the position in the context of how the financial system responds to physical and transition risks. “Australia is facing growing climate risk, and the financial system has a critical role to play in supporting communities and the economy to adapt. ASFI plays an important part as an independent institution working closely across the financial system and policy community to help translate emerging risks and opportunities into practical, coordinated action. I look forward to working with the board, members, and stakeholders to build on the strong foundations already in place,” he said.
ASFI acknowledged Fok’s role as inaugural chair, noting his involvement in establishing board and decision-making structures and in shaping strategy as the organisation increased its activity across banking, superannuation, insurance, and capital markets. “Kristian has provided outstanding leadership to ASFI, establishing strong governance and strategic foundations that have enabled the organisation’s growth and impact in advancing Australia’s sustainable finance agenda. On behalf of the board and ASFI members, we thank Kristian for his significant contribution and ongoing commitment to sustainable finance in Australia,” Graham said.
The transition in board leadership comes as ASFI characterises sustainable finance in Australia as moving from framework development to implementation. In its 2025 “signals” review, the institute noted that, despite scrutiny of some global alliances and a rise in so‑called “greenhushing,” financial institutions continued to adjust risk management and capital allocation practices and to invest in internal capability. Key milestones in 2025 included the commencement of mandatory climate-related financial disclosures on Jan. 1 and the publication of the Australian Sustainable Finance Taxonomy in June.
Through ASFI’s taxonomy implementation program, major banks, superannuation funds, and other institutions began testing its use in lending and investment decisions, with some early application to insurance portfolios. ASFI has indicated that in 2026 the emphasis will be on how these tools operate in practice, including data availability, consistency of transition plans, and the treatment of climate, nature, and social factors in risk, pricing, and product structures.
McDonnell assumes the chair at a time when climate and sustainable finance policy in Australia is undergoing further change. In 2025, the federal government set a 2035 emissions reduction target of 62% to 70% below 2005 levels and released a National Climate Risk Assessment, a National Adaptation Plan, and a Net Zero Plan supported by sector pathways. ASFI has described these measures as a substantial update to the policy framework but has also pointed to fragmentation across instruments and jurisdictions. The institute has argued that more consistent and durable signals will be needed to mobilise private capital at the scale implied by national targets, including for higher-emitting and hard-to-abate sectors.
ASFI’s recent work has underscored the growing focus on physical risk, adaptation, and resilience alongside mitigation. With support from the Insurance Council of Australia (ICA) and its members, ASFI has advocated for expanding the Australian taxonomy to cover adaptation and resilience activities. Citing external actuarial analysis, it has noted that natural disasters already impose significant annual costs on the Australian economy, with projections for further increases by 2060, which has implications for underwriting, pricing, and capital management.
ASFI’s mandate has extended beyond climate mitigation to include nature-related issues, First Nations economic participation, and blended finance structures, all of which have potential implications for insurance balance sheets and investment strategies. On nature, ASFI has been commissioned by the federal government to examine how the taxonomy could incorporate nature-related objectives. It has produced work on natural capital and financial decision-making in sectors such as agriculture and land management, noting that asset values and supply chains in those sectors depend on ecosystems and biodiversity.
In relation to First Nations, ASFI has worked with a First Nations reference group and other partners on disclosure practices, identifying gaps in how First Nations rights, governance, and material risks are reflected in corporate and sustainability reporting. Legislative changes in 2025 enabling Indigenous Business Australia to access private capital, together with new strategies and research by banks and investors, have examined the link between First Nations participation, project risk, and investment flows. Blended finance has become another area of focus. In 2025, competition clearance allowed ASFI to work with financial institutions and government bodies on co-designing blended structures in which public and private capital share risk in climate, nature, and social projects, within defined regulatory parameters. ASFI has argued that such structures can support investment where risk-return profiles might otherwise deter private capital.
