Many of the organisations we work with understand the importance of assessing climate change risks and opportunities, and soon more businesses in New Zealand will be required and supported to do the same.
The Financial Sector (Climate-related Disclosures and Other Matters) Amendment Bill establishes a mandatory climate-related disclosure reporting regime for New Zealand. Under this regime, our largest companies will be required to produce climate statements according to disclosure requirements in External Reporting Board (XRB) standards.
The Bill enables the XRB to create a climate-related disclosure framework. The framework will comprise of at least two standards and an authoritative notice, which will be mandatory, plus accompanying non-mandatory guidance.
Yesterday marked the first day of consultation on the standards
The first standard to be developed on Governance and Risk Management is open for consultation now. Interested parties have four weeks to submit feedback. Consultation on the second standard, covering Strategy and Metrics and Targets, begins in March 2022 and also runs for four weeks.
From July 2022 there will be a three-month consultation period on the formal exposure draft of the standard and accompanying documents such as the draft adoption standard.
Tadpole welcomes the bill and its supporting standards, and we will be active submitters during the consultation period. Disclosing climate related risks and opportunities under the Bill and its standards will be mandatory for some companies, discretionary for others. XRB is expected to issue the standards at the end of 2022 with mandatory reporting set to begin in 2023. Those required to disclose include:
- Large, listed issuers with a market capitalisation exceeding $60 million
- Large financial entities, including banks, insurers, and managers of investment schemes with total assets exceeding $1 billion
To learn more about the Bill, the standards and the consultation process, visit the XRB site.